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HomeMy WebLinkAbout2006/02/01 - Minutes February 1 , 2006 CITY OF RANCHO CUCAMONGA CITY COUNCIL CLOSED SESSION MINUTES A. CALL TO ORDER The Rancho Cucamonga City Council held a closed session on Wednesday, February 1, 2006, in the Tapia Room of the Civic Center located at 10500 Civic Center Drive, Rancho Cucamonga, California. The meeting was called to order at 5:30 p.m. by Mayor William J. Alexander Present were Councilmembers: Rex Gutierrez, L. Dennis Michael, Sam Spagnolo, Diane Williams and Mayor William J. Alexander. Also present were: Jack Lam, City Manager; Pamela Easter, Deputy City Manager; James Markman, City Attorney; and Linda D. Daniels, Redevelopment Director; and Joe O'Neil, City Engineer. * * * * * * II B. ANNOUNCEMENT OF CLOSED SESSION ITEM(S) II Mayor Alexander announced the closed session items: B1. CONFERENCE WITH PROPERTY NEGOTIATORS PER GOVERNMENT CODE SECTION 54956.8 FOR PROPERTY GENERALLY LOCATED AT THE 14 ACRE FILIPPI WINERY SITE AT 12467 BASE LINE ROAD - LINDA D. DANIELS, RDA DIRECTOR, NEGOTIATING PARTY - CITY (Related file, Development Agreement and Master Plan - DRC2005-00361) - APN 227-161-10 and 1089-581-04 B2. CONFERENCE WITH LEGAL COUNSEL TO DECIDE WHETHER TO INITIATE LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(c) - (ONE CASE) - CITY ****** C. PUBLIC COMMUNICATIONS ON CLOSED SESSION ITEM(S) I No one was present to comment on the closed session item. * * * * * * II D. CONDUCT OF CLOSED SESSION II Closed session began at 5:35 p.m. ****** E. CITY MANAGER ANNOUNCEMENTS AND REPORTS * * * * * * City Council Minutes February 1, 2006 Page 2 II F. RECESS II The closed session adjourned at 6:50 p.m. with no action taken. * * * * * * CITY OF RANCHO CUCAMONGA CITY COUNCIL MINUTES Reqular Meetinq I A. CALL TO ORDER II A regular meeting of the Rancho Cucamonga City Council was held on Wednesday, February 1, 2006, in the Council Chambers of the Civic Center located at 10500 Civic Center Drive, Rancho Cucamonga, California. . Mayor William J. Alexander called the meeting to order at 7:02 p.m. Present were Councilmembers: Rex Gutierrez, L. Dennis Michael, Sam Spagnolo, Diane Williams and Mayor William J. Alexander. Also present were: Jack Lam, City Manager; Pamela Easter, Deputy City Manager; James Markman, City Attorney; D. Craig Fox, Deputy City Attorney; Mike Nelson, Sr. Redevelopment Analyst; Larry Temple, Administrative Services Director; Tamara Layne, Finance Officer; Sid Siphomsay, Information Systems Analyst; Mike Toy, Information Systems Specialist; Dawn Haddon, Purchasing Manager; Joe O'Neil, City Engineer; Dan Coleman, Acting City Planner; Mike Diaz, Sr. Planner; Trang Huynh, Building Official; Dave Moore, Community Services Superintendent; Captain Pete Ortiz, Rancho Cucamonga Police Department; Chief Peter Bryan, Rancho Cucamonga Fire Protection District; Kimberly Thomas, Management Analyst 1/1; Shirr'l Griffin, Office Specialist /I - City Clerk's Office; and Debra J. Adams, Secretary. * * * * 1< * B. ANNOUNCEMENTS/PRESENTATIONS B 1 . A presentation of a Proclamation to the American Heart Association in recognition of "American Heart Month" and their "Go Red Day for Women" campaign. The Mayor and City Council presented the Proclamation to Rebecca Stafford, Volunteer & Executive Director of Children's Fund. B2. A presentation of Certificates to the RC Broncos Pee Wee Football Team in recognition of winning their first youth football championship title. The Mayor and City Council presented Certificates to the coaches and team members. * * * 1< * * C. PUBLIC COMMUNICATIONS C1. John Lyons, Etiwanda area of City, reported the Mayor used to be a Pop Warner coach years ago. He asked that items 08 and 09 be removed from the Consent Calendar for discussion. He brought up City Council Minutes February 1, 2006 Page 3 debris basins and the amount of water they can hold. He stated the Colonies in Upland made a debris basin, but stated he is concerned about the residents in Upland being protected from a flood. He wasn't sure the developer was concerned about Upland or Rancho Cucamonga residents. He talked about flood insurance he used to have on his home and felt people near the Colonies will have to purchase flood insurance in order to be protected. He did not think this area should be developed because it is in the middle of a fiood basin. He felt Rancho Cucamonga should be concerned about this also. C2. Bill McCliman brought up the Fire Strategic Plan that was presented by the Fire Chief some time back. He did not feel the public could be safe unless this Plan is implemented. He asked where this stands. Mayor Alexander stated there is a meeting scheduled for February 23'd at 5:00 p.m. to discuss this. Mr. McCliman stated he had previously asked that a letter be sent to the County requesting that the newly hired deputies be sent to Rancho Cucamonga, and asked if this was done. Jack Lam, City Manager, stated a contracting agency of the County can have as many officers as it wants as long as they pay for them. C3. Hilda Phillips, Terra Vista area, brought up earthquake safety. She said she attended a meeting in Claremont last week about this. She mentioned some points that were brought up in this meeting regarding earthquake safety and shared them with the audience. ****** II D. CONSENT CALENDAR II 01. Approval of Warrants, Register Nos. 1/11/06 through 1/24/06 and Payroll ending 1/24/06 for the total amount of $5,561 ,286.01. 02. Approval to authorize the advertising of the "Notice Inviting Bids" for the Bridge Maintenance and Rehab Project at Heritage Park, to be funded from Park Fees. RESOLUTION NO. 06-023 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, APPROVING PLANS AND SPECIFI CATIONS FOR THE "BRIDGE MAINTENANCE AND REHAB PROJECT AT HERITAGE PARK" AND AUTHORIZING AND DIRECTING THE CITY CLERK TO ADVERTISE TO RECEIVE BIDS 03. Approval to authorize the advertising of the "Notice Inviting Bids" for the Fisher Drive Landscape Improvements, to be funded from Beautification Fees and Developer Trust Deposit. , RESOLUTION NO. 06-024 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, APPROVING PLANS AND SPECIFICATIONS FOR THE "FISHER DRIVE LANDSCAPE IMPROVEMENTS" AND AUTHORIZING AND DIRECTING THE CITY CLERK TO ADEVERTISE TO RECEIVE BIDS City Council Minutes February 1 , 2006 Page 4 04. Approval to appropriate an additional $110,000 from Community Development Technical Services Fund 016 into Acct. No. 1001314-5303 (Contract Services Reimbursable) to continue contract terms for two (2) contract planners through the end of FY 2005-2006. D5. Approval of an appropriation in the amount of $25,000 from Measure I Fund Balance to Account No. 11763035650/1532176-0 for the Base Line Road and East Avenue Street Rehabilitation Improvements in cooperation with the City of Fontana. 06. Approval to accept grant revenue in the amount of $19,514.00 from the United States Department of Justice 2006 Justice Assistance Grant (JAG) Award into Acct. No. 13540000-4740 (Grant Income) for use by the Poiice Department for the purchase of police-related equipment and technology (14 hand-held radar guns for use by the Traffic Division to enforce vehicle code violations). 07 Approval to appropriate the Animal Care and Services Departmental Budget for partial year operations for FY 2005/06 (personnel costs of $466,060 and operating costs of $224,980) for one-time start-up costs ($1,381,230) and for capital costs ($1,996,900) in the total amount of $4,069,170 into various accounts as detailed in the attached budget summary which was approved by City Council on December 13, 2005. 08. Approval of the execution of various contracts for the purchase of furniture, fixtures, equipment and professional services for the Rancho Cucamonga Animai Care and Services Department. REMOVED FOR DISCUSSION BY JOHN LYONS 09. Approval of a Resolution authorizing the emergency procurement of construction and construction management services for facility repairs, modifications and improvements to the Rancho Cucamonga Animal Shelter (CO Nos. 06-005, 06-006, 06-007). REMOVED FOR DISCUSSION BY JOHN LYONS RESOLUTION NO. 06-025 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, APPROVING AND AUTHORIZING THE EMERGENCY PROCUREMENT OF CONSTRUCTION AND CONSTRUCTION MANAGEMENT SERVICES WITHOUT COMPETITIVE BIDDING FOR FACILITY REPAIRS, MODIFICATIONS AND IMPROVEMENTS TO THE RANCHO CUCAMONGA ANIMAL SHELTER, LOCATED AT 11780 ARROW ROUTE 010. Approval of the Annexation to Landscape Maintenance District Nos. 1 and Street Lighting Maintenance District Nos. 1 and 2 for 8395 Chaffee Street located on the south side of Chaffee Street west of Baker Avenue, submitted by Miguel Rodriguez. RESOLUTION NO. 06-026 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, ORDERING THE ANNEXATION OF CERTAIN TERRITORY TO LANDSCAPE MAINTENANCE DISTRICT NO. 1 AND STREET LIGHTING MAINTENANCE DISTRICT NOS. 1 AND 2 FOR 8395 CHAFFEE STREET (APN: 0207-541-52) 011. Approvai of Map and Ordering the Annexation to Landscape Maintenance District NO.7 and Street Lighting Maintenance District Nos. 1 and 7 for Tract No. 14759-2 located at Wardman Bullock Road and Wilson Avenue submitted by Puite Homes - APN: 226-102-17 RESOLUTION NO. 06-027 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, APPROVING TRACT MAP NUMBER 14759-2 \ City Council Minutes February 1, 2006 Page 5 RESOLUTION NO. 06'028 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, ORDERING THE ANNEXATION OF CERTAIN TERRITORY TO LANDSCAPE MAINTENANCE DISTRICT NOS. 7 AND STREET LIGHTING MAINTENANCE DISTRICT NOS. 1 AND 7 FOR TRACT MAP NO. 14759-2 012. Approval of Improvement Agreement, Improvement Security and Ordering the Annexation to Landscape Maintenance District NO.7 and Street Lighting Maintenance District Nos. 1 and 7 for Tract No. 14759-3, located at Wardman Bullock Road and Wilson Avenue, submitted by Pulte Homes - APN: 226- 102-17. RESOLUTION NO. 06-029 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, APPROVING IMPROVEMENT AGREEMENTS AND IMPROVEMENT SECURITIES FOR TENTATIVE TRACT 14759-3 RESOLUTION NO. 06-030 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, ORDERING THE ANNEXATION OF CERTAIN TERRITORY TO LANDSCAPE MAINTENANCE DiSTRICT NO. 7 AND STREET LIGHTING MAITNENANCE DISTRICT NOS. 1 AND 7 FOR TRACT NO. 14759-3 (APN: 226-102-17) 013. Approval to accept Improvements, retain the Faithful Performance Bond in lieu of a Maintenance Bond, and file a Notice of Completion for improvements for DRC2002-00864, located on the west side of White Oak Avenue north of Elm Avenue, submitted by Allyn B. Scheu and L. & J Scheu Living Trust. RESOLUTION NO. 06-031 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, ACCEPTING THE PUBLIC IMRPVOEMENTS FOR DRC2002-00864 AND AUTHORIZING THE FILING OF A NOTICE OF COMPLETION FOR THE WORK 014. Approval to release all Maintenance Guarantee Bonds for Tract 15727, 15727-6 and 15727-8 located north of Fourth Street and east of the Cucamonga Creek Channel, submitted by Cornerpolnte 257, LLC. 015. Approval to release Maintenance Guarantee Cash Deposit for DR 00-19, located at 10905 Jersey Boulevard, submitted by Hoffinger Industries, Incorporated. MOTION: Moved by Spagnolo, seconded by Williams to approve the staff recommendations in the staff reports contained within the Consent Calendar with the exception of items 8 and 9. Motion carried unanimously 5-0. DISCUSSION OF ITEMS OS AND 09 as requested by John Lyons. DS.Approval of the execution of various contracts for the purchase of furniture, fixtures, equipment and professional services for the Rancho Cucamonga Animal Care and Services Department. 09. Approval of a Resolution authorizing the emergency procurement of construction and construction management services for facility repairs, modifications and improvements to the Rancho Cucamonga Animal Shelter (CO Nos. 06-005, 06-006, 06-007). City Council Minutes February 1, 2006 Page 6 A staff report was presented by Kimberly Thomas, Management Anaiyst /II. Jack Lam, City Manager, stated this is a clean-up item and it is required to take these official actions. MOlTON: Moved by Spagnolo, seconded by Williams to approve items 08 and 09. Motion carried unanimously 5-0. ****** II E. CONSENT ORDINANCES II No items submitted. * * 1< '* 1< 1< II F. ADVERTISED PUBLIC HEARINGS II F1. CONSIDERATION OF APPEAL OF PLANNING COMMISSION DECISION AMENDING THE CONDITIONS OF APPROVAL FOR CONDITIONAL USE PERMIT 94-01 AND ENTERTAINMENT PERMIT 91-03 FOR MARGARITA BEACH. LOCATED AT 9950 FOOTHILL BOULEVARD - APN: 1077- 621-34 (CONTINUED FROM JANUARY 18, 2006) Mayor Alexander recused himself because of a conflict he has with this matter as he has done at previous meetings. He left the Council Chamber. James Markman, City Attorney, stated there is a certified shorthand reporter assisting the City Clerk with the preparation of the minutes for this matter. (see attached verbatim transcript). MOTION: Moved by Gutierrez, seconded by Michael to sustain the appeal with modifications to the Planning Commission Resolution, with the appropriate Resolution coming back at the February 15, 2006 meeting confirming same. Motion carried 3-1-0-1 (Spagnolo voted no, Alexander abstained). 1r1r****1r1r A recess was taken at 11 :21 p.m. The meeting was called back to order at 11 :30 with all Councilmembers present. ******** F2. APPROVAL TO ADOPT A RESOLUTION TO ESTABLISH ANDIOR INCREASE THE FOLLOWING ENGINEERING-RELATED FEES AND FEES IN THE FOLLOWING FEE CATEGORIES: APPLICATION FEES (MISCELLANEOUS). UTILITY UNDERGROUNDING FEES. PARK DEVELOPMENT FEES (INCLUDING "QUIMBY" AND IMPACT FEES). PUBLIC WORKS CONSTRUCTiON PERMIT FEES. MAP AND IMPROVEMENT PLAN CHECKING FEES AND ETIWANDA DRAINAGE AREA (MASTER 9) FEES A staff report was presented by Joe O'Neil, City Engineer. Mayor Alexander opened the public hearing. There being no response, the public hearing was closed. City Council Minutes February 1, 2006 Page 7 RESOLUTION NO. 06-032 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, ADOPTING A RESOLUTION TO ESTABLISH ANDIOR INCREASE THE FOLLOWING ENGINEERING- RELATED FEES AND FEES IN THE FOLLOWING FEE CATEGORIES: APPLICATION FEES (MISCELLANEOUS), UTILITY UNDER- GROUNDING FEES, PARK DEVELOPMENT FEES (INCLUDING "QUIMBY" AND IMPACT FEES), PUBLIC WORKS CONSTRUCTION PERMIT FEES, MAP AND IMPROVEMENT PLAN CHECKING FEES AND ETIWANDA DRAINAGE AREA (MASTER 9) FEES MOTION: Moved by Williams, seconded by Michael to approve Resolution No. 06-032. Motion carried unanimously 5-0. ****** II G. PUBLIC HEARINGS II No items submitted. ****** II H. CITY MANAGER'S STAFF REpORTS ~I No items submitted. ****** II I. COUNCIL BUSINESS II 11. LEGISLATIVE UPDATES (Oral) Councilmember Williams wanted to thank Senator Dutton who is carrying legislation on the $26 billion for the transportation proposal from the Governor. She stated this is part of the Strategic Growth Plan. She stated Senator Dutton has introduced Senate Bill 1165, which will facilitate the proposed key transportation infrastructure investments, especially in the Inland Empire. She also stated Assemblymember Bill Emerson was just honored by his colleagues as Republican Whip. She felt we were very fortunate to have very strong legislative representatives in Sacramento. '" '" '" '" '" * J. IDENTIFICATION OF ITEMS FOR NEXT MEETING No items were identified for the next meeting. ****** City Council Minutes February 1, 2006 Page 8 K. ADJOURNMENT MOTION Moved by Gutierrez, seconded by Michael to adjourn Motion carried unanimously 5-0 The meeting adtourned at 11 33 p m Res ectfully submitted, ~~1~1L Debra J A s, CMC City Clerk Approved March 1, 2006 • • Page 1 HEARING REGARDING ADVERTISED PUBLIC HEARINGS RE: CONSIDERATION OF APPEAL OF PLANNING COMMISSION DECISION AMENDING THE CONDITIONS OF APPROVAL FOR CONDITIONAL USE PERMIT 94-01 AND ENTERTAINMENT PERMIT 91-03 FOR MARGARITA BEACH, LOCATED AT 9950 FOOTHILL BOULEVARD - APN: 1077-621-34 (CONTINUED FROM JANUARY 18, 2006) RANCHO CUCAMONGA, CALIFORNIA REPORTER'S TRANSCRIPT OF PROCEEDINGS WEDNESDAY, FEBRUARY 1, 2006 7:44 P.M. - 11:20 P.M. DIANNE JONES & ASSOCIATES P.O. Box 1736 Pacific Palisades, California 90272 PHONE: 310.472.9882 FAX: 310.454.0942 Reported by: ANDREA M. SIMONIS, CSR No. 11620, RPR DIANNE JONES & ASSOCIATES 310.472.9882 Page 3 INDEX 1 2 3 SPEAKERS 4 MS. PEGGY SANCHEZ 5 MS. MARYA BLACK 6 MR. JIM OLSON 7 MS. VICKI SCIMONE 8 MR. DAVID MOSHER 9 MR. ED SANCHEZ 10 MR. LARRY LlBERTORE 11 MR. JOHN LYONS 12 MR. JAMES REISS 13 MR. JOHN WESTON 14 MR. MARK DAVIDSON 15 MS. JOAN SHANKS 16 MS. PAT STEVENS 17 MR. MIKE DIAZ 18 19 20 21 22 23 24 25 PAGE 6 9 13,45 20 28 31 39 40 47 60 94 103 104 107 MR. MICHAEL MS. WILLIAMS MR. MARKMAN MR. SPAGNOLO MR. GUTIERREZ MOTION VOTE Page 147, Line II DIANNE JONES & ASSOCIATES 310.472.9882 44,85,93,96, 120, 133, 145, 146 89,90,96,97,98,101,102,139 90, Ill, 144 124 127 1 2 3 4 5 6 7 8 9 10 Proceedings taken in Council Charrbers, City Hall, City of Rancho Cucarronga, locatedat 10500 Civic Center Drive, Rancho CucarrDnga, California, on Wednesday, February I, 2006, at 7:44 p.m, before Andrea M. Simmis, CSR No. 11620, RPR Page 2 I i AGENCY, BOARD & CITY COUNCIL MEMBERS Mr. WilliamJ. Alexander, Mayor 11 Ms. Diane William;, Mayor Pro Tern 12 Mr. Rex Gutierrez, Merrber 13 Mr. L Dermis Michael, MenDer 14 Mr. Sam Spagnolo, MenDer 15 16 Mr. Jack lam, City Manager Mr. Jarres L Markmm, Gty Attorney 17 Ms. Debra J. Adam;, City Oerk 18 Mr. Joe O'Neil, City Engineer 19 20 Mr. Craig Fox, Deputy City Attorney Mr. Dan Colemm, City Plarmer 21 Mr. Mike Diaz, Senior Plarmer 22 23 24 25 DIANNE JONES & ASSOCIATES 310.472.9882 Page 4 1 TRANSCRIPT PROCEEDINGS 2 3 MR. ALEXANDER: Now we come to Advertised 4 Public Hearings. 5 First is a continuation of the appeal on the 6 commission decision on conditions at Margarita Beach. 7 I have already recused myself, so I will be 8 leaving. Diane witt be taking over, and our city 9 attorney will kind of bring us up to date to where we 10 are. 11 (Whereupon Mr. Alexander left the chambers.) 12 MR. MARKMAN: Before I say anything, 1 want to 13 remind everybody who speaks to the item this evening that 14 again, we have a shorthand court reporter taking down 15 this proceeding verbatim. She's left up at the podium 16 for those of you who go up there kind of a little 17 shopping list of things to do or not to do. Speak 18 slowly, speak clearly, and nods of the head or gestures 19 are not recordable. It's all pretty self-evident. 20 Mayor Pro Tern and members of the council, this 21 will be the third evening of this continued hearing. 22 At the last session, Margarita Beach closed its 23 initial presentation. Mr. Sanchez asked for a few weeks 2 4 to prepare for rebuttal. I have since talked to him on 25 the phone about what is rebuttal, and rebuttal would not DIANNE JONES & ASSOCIATES 310.472.9882 dS2b402a-ge83-453S-b780-Seab9aSda4ea Page 5 1 be necessarily -- hopefully not a repetition of anything 2 that was said in the first place, but responses that 3 specifically speak to the presentation that was made on 4 behalf of Margarita Beach. 5 So at this point in time, it would be 6 appropriate to take testimony from the public or other 7 persons in favor of the conditions the planning 8 conunission placed on this permit to operate. 9 MS. WILLIAMS: I'm going to suggest or ask the 10 city attorney if it would -- well, hold the procedure we 11 had before, which is have everyone speak first and then 12 the council will ask their questions because a subsequent 13 speaker may answer a question that a councilperson has, 14 and in the interest of time and to give everyone plenty 15 oftime to talk. We don~ want to take up that time, so 16 we'll ask the council to hold their questions until the 1 7 end of that presentation. 18 That will -- that's fair? Okay. 19 So the first person who would like to speak, 20 please come forward and be sure you identifY yourself for 21 the record. Then we would ask you to remember to sign 22 in. This is, again, to assist the reporter with the 23 spelling of your name. 24 1111 25 1111 DIANNE JONES & ASSOCIATES 310.472.9882 Page 7 1 Instead of operating as a restaurant serving 2 alcohol and having entertainment such as small bands and 3 musicians, he operated more like a nightclub with X-rated 4 advertisements attracting the young party crowd, having 5 waitresses attired in bikini tops, employing bouncers, 6 which is using -- of a crowd that you need to control. 7 As he stated on January 18th, no one under 21 is 8 allowed at his establishment. I ask you what restaurant 9 in Rancho Cucamonga serves alcohol, emptoys bouncers, and 10 doesn't allow anyone under 21 at any time whatsoever 11 during their business operations? 12 The planning commission resolutions that you 13 have before you, 05-50 and 05-51, that were approved 14 July 13th, 2005 by the planning commission and which are 15 under appeal do restrict the hours of operation and the 16 hours of entertainment at this establishment. They 17 update the floor plan regarding the tables and chairs and 18 how they're arranged. 19 They provide documentation to the planning 2 0 department reflecting the percentage of actual gross 21 receipts spent for food and for alcohol. And also, it 22 asks the city planner to monitor whether they are in 2 3 compliance and bring progress reports back to the 24 planning commission. 25 Now, remember, the only resolutions that were DIANNE JONES & ASSOCIATES 310.472.9882 Page 6 1 PRESENTATION 1 2 3 MS. SANCHEZ: Good evening. My name is 4 Peggy Sanchez. I reside at 9869 Estacia Court, and I've 5 lived at that address with my famity for the last 6 20 years. 7 One year ago, on February 2nd, 2005, residents 8 living near Margarita Beach put an item on the city 9 council agenda to discuss the business operations and how , 10 it had affected our quality of life. The City Council ' 11 referred us then to the planning conunission. 12 After several public hearings on July 13th, 13 2005, the planning conunission approved Resolution 05-50 14 and 05-51, approving modifications to the CUP 88-45 and i : 15 entertainment permit 91-03, which are now being appealed. 16 Contrary to Attorney Reiss' comments that on 17 January 18th issues kept changing, what really happened 18 is that during the planning commission public hearings, 19 we became knowledgeable of the CUP 88-45, entertainment I 20 permit 91-03, Resolution 88-242, and Resolution 88-242A. 2 1 We discovered that the disturbances in our 22 neighborhoods -- noise, trash, rowdy crowds -- were 23 really a direct result of Mr. Davidson's failure to 24 operate his business, Margarita Beach, in compliance with 25 the CUP and the entertainment permit. DIANNE JONES & ASSOCIATES 310.472.9882 Page 8 1 approved by the planning connnission were 05-50 and 05-51, 2 and that was on July 13th of 2005. Mr. Davidson and his 3 attorneys keep referring to some draft conditions from 4 the June 22nd public hearing which were never approved. 5 So those draft conditions are irrelevant to this appeal 6 process because they were never approved. 7 What is amazing to me is that Dr. Davidson and 8 his attorneys are trying very hard to impress you and to 9 convince you -- they spent a lot of time and a lot of 1 0 money -- that he's a good businessman and that he's a 11 good neighbor. Then my question is, why has he not 12 complied with the city's regutations in regards to his 13 CUP and entertainment pennit? 14 I lruty believe that if Mr. Davidson had run 15 Margarita Beach in compliance with his CUP and 16 entertainment permit that he was pennitted to operate 1 7 under when he took over the business from Skipper's, and 18 that was April of 1996, it is unlikely that there would 19 have been the type of disturbances to our quality of life 2 0 that residents in our neighborhood and the neighborhoods 2 1 surrounding this operation have endured for over the last 2 2 nine years. 23 So in closing, I urge you to deny his appeal and 24 uphold the Planning Connnission Resotution 05-50 and 05-51 25 to bring his operation back into compliance, and please DIANNE JONES & ASSOCIATES 310.472.9882 d52b402a-geS3-4535-b7S0.se.b9a5da4ea Page 9 1 do not set a precedent by telling -- by approving his 2 appeal and telling businesses in Rancho Cucamonga that 3 it's okay to operate when you're not in compliance with 4 the city's regulations. 5 The residents, you know, over this last year 6 have spent a lot of time in meetings and writing letters 7 and preparing speeches and giving testimony both before 8 the planning commission and the City Council. 9 I want to leave you with a quote from our great 10 anthropologist, Margaret Mead: "Never doubt that a small 11 group of thoughtful, committed citizens can change the 12 world. Indeed, it's the only thing that ever has." 13 Thank you. 14 15 PRESENTATION 16 1 7 MS. BLACK: Good evening. Hi. My name is 18 Marya Black. I live at 8022 Pasito Avenue, and I'm a 19 registered voter. 20 I would like to start off by saying thank you 21 for all your time in listening to all of us. 22 MS. WilLIAMS: Get a little more in front of the 23 microphone. 24 MS. BLACK: Okay. Is that better? 25 MS. WILLIAMS: Much better. Thank you. DIANNE JONES & ASSOCIATES 310.472.9882 Page 11 1 She had a little white T-shirt-material shirt 2 with short sleeves and the cut in front to show the 3 midriff area and the maximum cleavage as possible. It 4 was tied tightly in the back right under the bustline. 5 Her pants were black and very low on her waist. She 6 asked us what we would like, also if we woutd sign 7 another petition. We again declined to sign the petition. 8 The music was so loud that we coutd not hear her 9 unless we leaned in to her to see what she was saying. I 10 never once saw any food being served to any table. I 11 could never -- sorry. 12 I coutd not locate nor was offered a menu. I 13 did not see any disptay of any food items. I saw a 14 waitress in the back of the bar on a stage selling Corona 15 beers out of a bucket. The D.l announced "dollar 16 shots," and a waitress climbed up on top of the D.l 17 booth and had a whistle in her mouth. 18 The people would bring their dollars for a shot 19 and woutd -- sorry -- and she would bend over them, 20 blowing her whistle and pouring alcohol into their 21 mouths. The D.J. also announced "Bring your birthday 22 party to this tocation and everyone within the party 23 would receive $1 shots." I never heard the D.J. announce 2 4 the kitchen was closed or any specials for any food. 25 As the night went on, more peopte piled in. I DIANNE JONES & ASSOCIATES 310.472.9882 Page 10 1 Would you mind starting over? 2 MS. BLACK: My name is Marya Black, and I live 3 at 8022 Pasito Avenue. I'm a registered voter, and I 4 would like to start offby saying thank you for listening 5 to us for all this time. 6 Myself and two of my girlfriends entered 7 Margarita Beach on November 12th at 9:38 P.M. As we 8 walked up to the door, we were stopped and asked to sign 9 a petition on behalf of Margarita Beach. We stated, "We 1 0 don't sign anything without reading the details," and 11 then was asked to sign anyway. We again stated, "We do 12 not want to sign." They gave us some ugly looks, and we 13 entered the bar. 14 There were about 40 to 50 people inside at this 1 5 time. The music was loud, and there was only a few 16 places left to sit. We found a booth to sit in next to 17 the D.J. booth and where the rest rooms were located. We 1 8 then sat down, and the waitress approached us and 19 asked -- sorry. 2 0 We then sat down and the waitress approached us, 21 whose name I don~ know because her nametag was turned 22 around and located in her midriff area. She had long, 23 light-blonde hair and was very nice, but when -- but what 24 she was wearing was a little too much for me. I really 25 didn't want to see that much of her body. DIANNE JONES & ASSOCIATES 310.472.9882 Page 12 1 now know why Mr. Davidson says his business woutd be shut 2 down ifhe was forced to close at midnight because that's 3 when the ptace is standing-room-only. 4 About five till midnight, Mr. Davidson walked 5 past where I was seated. He then saw me and turned 6 around, walked behind me, tapped me on the shoulder, and 7 asked me my name. I told him my name, and he stated that 8 he woutd like to tatk to me atone outside. I refused and 9 stated, "Isn't this a neighborhood bar? Aren't I a 1 0 neighbor?" He continued to insist to talk to me outside 11 and stated, "Under the circumstances, you and your 12 friends should leave." 13 One of my friends, who showed up at about II :45, 14 went to talk to Mr. Davidson, but because of the noise 15 level, they went to talk in the kitchen. When I found my 16 friend and Mr. Davidson in the kitchen, I noticed not one 1 7 plate nor food in the kitchen. I then told my friend, 18 "It's not worth all the commotion that he's causing for 19 us to be here any further." 2 0 The security team cleared off our table and 2 1 refused us further service. While we were gathering our 2 2 coats to teave the premises, the security team hovered 23 over myself and my friends in a rude manner. 24 Mr. Davidson and five of his security team walked us to 2 5 our cars and waited for us to leave. His actions begged DIANNE JONES & ASSOCIATES 310.472.9882 d52b402a-ge83-4535-b780-5eab9a5da4ea Page 13 1 the question, What is he trying to hide? I felt that his 2 actions were excessive and uncalled-for. 3 Mr. Davidson claims that he has done all these 4 changes to his business, but yet has not brought photos, 5 brought proof of a menu or anything to the table. He's 6 asked us to look at the facts, and the fact is 7 Mr. Davidson is running this business as a bar, not a 8 restaurant. You can look as far back as you want. He 9 has never obeyed his permits. 10 Mr. Davidson also stated that he does not know 11 our motives -- what our motives are. I can tell you our 12 motives. Our families and our safety are our motives. 13 I would like to compliment Mr. Davidson on all 14 his efforts finding people in our community to show 15 support for his bar, but in fact, the people who wrote 16 those letters in support of Mr. Davidson are peopte that 1 7 rent homes. They are not homeowners looking for the best 18 interest in their investment. 19 Thank you very much. 20 MS. WILLIAMS: Thank you. 21 Next speaker? Are there no other speakers? 22 23 24 25 PRESENTATION MR. OLSON: Good evening. My name is DIANNE JONES & ASSOCIATES 310.472.9882 Page 15 1 advice from the city's attorney, formulated 2 Resolutions 05-50 and 05-51. The only issue that the 3 City Councit needs to consider in this matter is whether 4 Margarita Beach is a restaurant or a c1ub/bar. Clearly, 5 the Conditional Use Permit 88-45 states that first and 6 foremost, the business is to be operated as a restaurant. 7 It should be more than obvious to everyone that 8 has not been the case. It has been operated as a 9 nightclub/bar for a number of years. It is apparent that 10 the business has been unilaterally redefined. It appears 11 that Margarita Beach has been operating primarily off of 12 the entertainment permit, rather than the conditional use 13 permit. 14 Doing so clearly puts the business out of 15 compliance with the terms of the conditional use permit. 16 Hypothetically, if the entertainment permit were revoked, 17 the business could still operate because of the 18 conditional use permit. However, if the conditif;mal use 19 pennits were revoked, the business would be forced to 2 0 close. 21 Simply stated, the entertainment permit is 22 ancillary to the conditional use permit. Business cannot 23 be conducted based solety on the entertainment permit. 2 4 Throughout these hearings, we have been asked to 25 provide evidence in this matter. The City Council has DIANNE JONES & ASSOCIATES 310.472.9882 Page 14 1 , 1 Jim Olson. I live on Estacia Court. 2 Tonight marks one year since we first stood in 3 these chambers to address the issues surrounding 4 Margarita Beach. There are several issues that will be 5 addressed in my rebuttal. 6 There have been many attempts by members of the 7 City Council and planning commission to thwart our 8 efforts. The first night that concerns about 9 Margarita Beach were voiced, Councilman Rex Gutierrez 10 gave an unsolicited testimony for Mark Davidson. 11 Further attempts to redirect and delay the 12 hearings by members ultimately failed. The dilatory 13 tactics by the city forced an investigation of the 14 conditional use permit and entertainment pennit for 15 Margarita Beach. That investigation defined the 16 business as what it should be, not what it had become 1 7 over the years. 18 Subsequent to obtaining the permits, information 19 was gathered from Margarita Beach's website. 20 Advertising flyers were also collected. Photographs from 21 events and advertising for promotions made it more than 22 obvious what kind of business was being conducted within 23 the walls of Margarita Beach. More information was 24 gathered and offered to the planning commission. 25 Ultimately, the planning commission, with legat DIANNE JONES & ASSOCIATES 310.472.9882 Page 16 1 all the evidence it needs to pass the two planning 2 commission Resolutions 05-50 and 05-51. All of the 3 evidence in this matter was generously supplied by 4 Mark Davidson and his employees. 5 The website, ieparty.com, was public domain and 6 easily accessed over the Internet. All of the 7 photographs and advertisements came from the business. 8 The advertising flyers were strewn across the parking 9 lot and sidewalk in front of Margarita Beach. All we 10 had to do was pick them up. 11 Advertisements in entertainment magazines were 12 placed by the business. Listings for Margarita Beach are 13 found under the Club and Bar Directory. Listings for 14 Margarita Beach can be found on page 992 under 15 "Nightclubs" in the 2005 Clarke phone book directory for 16 Rancho Cucamonga. The business is clearly being promoted 17 as a club/bar. There can be no argument as to the intent 18 of the advertising and promotion of Margarita Beach. 19 The most damning piece of evidence is 20 Mark Davidson's letter to the City of Rancho Cucamonga 21 via Brad Buller dated March 4th, 1996. Mark Davidson 22 states, quote, Pursuant to your request, I have reviewed 23 CUP 88-45 for this location. I do hereby state that I am 24 aware of all of the conditions set forth and do hereby 25 agree to comply with all said conditions. End quote. DIANNE JONES & ASSOCIATES 310.472.9882 d52b402a-ge83-4535-b780-5eab9a5da4ea Page 17 1 Two weeks ago, Mr. Davidson's attorney attempted 2 to convince the City Council that subsequent resolutions 3 superseded the original conditional use pennit. That is 4 simply not true. As evidenced in Mark Davidson's letter, 5 it was not true ten years ago nor is it true today. 6 Mark Davidson signed and agreed to operate his 7 business under the terms and conditions set forth in 8 Conditional Use Pennit No. 88-45. The City has an 9 obligation to enforce its laws and codes. For whatever 10 reasons, the conditional use pennit for Margarita Beach 11 has not been enforced. Individuats and agencies within 12 the city simply have not done their job. 13 As the regulatory body and enforcement agency 14 for the city, you have both the obligation and the 15 opportunity to correct this problem by passing the 16 planning commission's Resolutions 05-50 and 05-51. These 17 resolutions will accomplish two things. 18 First, it will force Margarita Beach into 19 compliance with its conditional use pennit. 20 Second, and just as important, it will mandate 21 enforcement by the city. 22 Do not be fooled by the specious arguments 23 offered by the appellant. The sole issue is whether 24 Margarita Beach is a restaurant or a club/bar. 25 Substantial and significant evidence has been presented DIANNE JONES & ASSOCIATES 310.472.9882 Page 19 1 couldn't get a copy. I tried everything that I could, 2 but Saturday night at 10:00, I just happened to be 3 surfing through the satellite. I happened to come across 4 a program called "The Poor Man's Bikini Beach." 5 Interestingly enough, that night, one of the 6 features on that was Margarita Beach. They had a 7 hot-shorts contest, and they showed women dancing rather 8 provocatively, which is fine for a bar nightclub. I 9 don't really have that -- I'm not objecting to that. But 10 it showed that that's what it was. I didn't see anybody 11 serving food on there, but it was there. 12 They had emptoyees being interviewed by this 13 individual who goes by the name of "The Poor Man." He's 14 a former disc jockey, and I guess he does independent 15 types of programming and he had this program. When I 16 called KJLA, Channet 57, to obtain a copy of this 17 program, they said they could not provide it to me 18 because it was a paid program. 19 This individual bought the time for the program 20 that he presented that evening and actually had at least 21 a full hour of programming on that night. I know that 22 this individual just did not walk into the establishment 23 and as a surprise. It would appear that it was with full 24 consent of at least the managers ofthe bar and whoever 25 else was operating at the time. DIANNE JONES & ASSOCIATES 310.472.9882 Page 18 1 ! 1 to both the planning commission and city council to prove 2 that Margarita Beach is a club/bar. That fact clearly 3 puts the business out of compliance with the conditional 4 use pennit. 5 Passage of the resolutions will bring 6 Margarita Beach into compliance to both the letter and 7 intent of the conditional use pennit agreed to by 8 Mark Davidson in March of 1996. 9 I have a couple of other things that I want to 1 0 present too. Some of it is advertising. This is from 11 Thanksgiving, and it's a "pre-Turkey Day party, party, 12 party, party, party, party, party. Get here early and 13 avoid the line. This is one of the biggest weekday 14 parties of the year." I don~ recall any of the 15 restaurants in the area advertising a pre-Thanksgiving 16 celebration such as this. 17 Additionally, on the Internet, I went on today. 18 and I thought I'm just going to check ie.party.com. 19 Interestingly enough, on the website, there's a message: 20 "Check back soon. Ieparty.com will be back with a new 21 look." Now, we've been told that they've shut it down. 2 2 So I guess the plan is is that we're going to restart 2 3 this thing in a short period of time, probably after all 24 of this is 'over. 2 5 One other thing, and it's unfortunate that I DIANNE JONES & ASSOCIATES 310.472.9882 Page 20 1 I wish I could have obtained a copy. I tried to 2 go to a website for this individual', this Poor Man, and 3 you have to subscribe to the website in order to get the 4 downtoads. And quite honestly, I didn't want to give the 5 guy a dime. So I am without that, but it is evidenced 6 and it is something that if the City wanted to look into, 7 I'm sure it could be easity accessed. 8 Thank you for your time. I appreciate it. 9 MS. WILLIAMS: Thank you. 10 MR. OLSON: And I will leave a copy of my 11 statement for the reporter, a copy of the ieparty.com, as 12 well as copies of the advertisement. 13 I also have one other thing. It's just more of 14 what I had presented earlier, but it's an entertainment 15 magazine. On the cover, I wrote down pages that there 16 were mentions of Margarita Beach and advertising. 1 7 Thank you again. 18 19 PRESENTATION 20 .21 MS. SCIMONE: Does the overhead work? 22 MS. WILLIAMS: I think so. 23 MS. SCIMONE: I want to show you pictures 24 from-- 25 MS. WILLIAMS: The City Clerk will help you with DIANNE JONES & ASSOCIATES 310.472.9882 dS2b402a-ge83-453S-b780-Seab9aSda4ea Page 21 1 that. 2 MS. SCIMONE: Attention Councilmembers, City 3 Attorney, City Manager, and fellow Cucamonga residents. 4 I stand here before you this evening as a member 5 of an elite group of residents who have come before 6 you-- 7 MS. WILLIAMS: Excuse me, Ma'am. 8 MS. SCIMONE: Vicki Scimone, 8016 Pasito Avenue. 9 MS. WILLIAMS: Thank you very much. 10 MS. SCIMONE: We've been before you to request 11 forced compliance of all regulations, conditions, and 12 requirements set in the conditional use and entertainment 13 permits currently held by MargaritaBeach. 14 As you are very aware, we residents started 15 these proceedings one year ago this month in order to 16 regain civility and peace in our neighborhood. We 1 7 residents have experienced vandalism, littering, sexual 18 activity outside our homes, inunense amounts of traffic 19 and noise from Margarita Beach patrons when leaving at 2 0 night. 21 They have found it necessary to race up and down 22 our street looking for an outlet that won1let them 23 on -- that won't lead them on to Foothill Boulevard or 24 looking for an off-site place to park. 25 Don't forget about the mentioned defecation, DIANNE JONES & ASSOCIATES 310.472.9882 Page 23 1 Let's look a moment at the countless phone calls 2 that were, in fact, made by numerous neighbors to the 3 potice department regardless of the issues being 4 complained about in these proceedings, and yet there are 5 minimal, if any, reports to back these claims. 6 Is it the fault of my neighbor or myself that we 7 called the police department for assistance or to 8 complain of the ongoings outside our homes, and an 9 officer didn't come or perhaps showed up an hour after 1 0 the fact? 11 There is also the fact to consider that how many 12 times did an officer come to our homes and, for example, 13 did find individuals having sex in their cars outside our 14 homes where no action was taken. Those particular 15 individuals were sent on their merry way. Does it mean 16 for those calls that they did not occur because they 17 didn't properly document their findings? 18 I have pictures of our recent gifts left behind 19 on a couple of occasions that I would like to present to 20 you. I don't know how clearly you can see these. Maybe 21 if you can pass them around. 2 2 This top set of photos here is a nice, big set 23 of skid marks down our street. Our cul-de-sac is about 24 four houses tong. What peopte do is they pull into our 25 neighborhood. They turn on our street looking for an DIANNE JONES & ASSOCIATES II 310.472.9882 Page 22 1 I 1 urination, and regurgitation we not only woke up to find 2 in the mornings, but also those actions that we have 3 personally witnessed. These events are not new 4 information to this council, true; but they are the 5 reasons we came to you in the first place. 6 There has been mention on numerous occasions 7 that this is the first you all have heard of these 8 problems. Let me remind you the inaccuracy of those 9 insinuations. For years, my neighbors -- whom in length 10 in years exceed me in their amount of tolerance -- have 11 been living with the issues before mentioned and have had 12 enough. 13 There were meetings that took place between 14 Mr. Sanchez, Mr. Davidson, and the police department that 15 were held to discuss problems and possible resolutions of 16 the before-mentioned issues. Regardless of how many of 17 these meetings were held, the point is they were held. 18 It is the responsibility of the police 19 department to forWard any conununity, slash, business 20 issues to the City, which did not happen. Therefore, you 21 didn't hear about it. Should Mr. Sanchez in the affairs 2 2 of the neighborhood be faulted because the proper 23 protocol was not followed? Does that mean we overlook 24 the fact that the meeting did, in fact, take place? It 25 absolutely does not. DIANNE JONES & ASSOCIATES 310.472.9882 Page 24 1 outlet. When they can't find one, they get pretty upset 2 and they do donuts and they turn around and they peel 3 out. 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 This first set here on this is about six months' old. There's three different copies of shots of that, so you can see pretty much what I'm pointing at. Let me turn that one that way. There's -- you can see here. Those are about six months' old. Our prettiest one starts in front of Marya Black's house, which is directly south of my house, and heads all the way down to Estacia Court, turning onto Estacia Court. Now, I refuse to be told these incidents do not occur. This is blatant evidence right here that we have people that pull onto our streets at night. Can I directly affiliate them with Margarita Beach patrons? No. I1I give you that. But these incidents happen on Friday and Saturday in the mornings -- nights that we wake up to find this stuff. When we hear it happening, are we supposed to call the police department and say "Someone is burning out on my street"? By the time they get there, they're gone. No proof of it. This is a shot of it actually turning on Estacia. You can see the skid marks continue all the way DIANNE JONES & ASSOCIATES 310.472.9882 Iii d52b402a-ge83-4535-b780-5eab9a5da4ea Page 25 1 down. These skid marks are approximately well over 2 200 feet at least from start to finish. 3 A few weeks ago, there were some boys sitting 4 outside at 1 :30, waiting for a ride, it looked. I called 5 my neighbor across the street and said, "There's some 6 gentlemen sitting out in front of your house. Do you 7 know them?" Her husband, Shayne, went outside to see 8 what they were doing. They saw him come out and walk 9 down to the end of his driveway, and they walked down the 10 street to Estacia Court, where a car pulled up. They got 11 in. Apparently, they were waiting for a ride. 12 The next morning, Shayne wakes up -- and I don~ 13 know how clearly you can see these, but his truck was 14 keyed all the way down the entire driver's side from 15 tailgate to -- from bumper to bumper, I should say. Is 16 that a coincidence of the gentlemen sitting outside his 17 house that night? Can we directly affiliate it to 18 Margarita Beach? Again, 1 :30 on a Friday right, who else 19 is close enough? 2 0 Our newest set of skid marks. We now have three 21 sets. This one is directly in front of Mr. Sanchez' 22 house. You can see the old marks here that come all the 2 3 way down and turn onto Estacia, and you can see where the 24 new one starts right here in front of Mr. Sanchez' house. 25 You can see it continues on more than a house-length. DIANNE JONES & ASSOCIATES 310.472.9882 Page 27 1 Needless to say, once again, the efforts and attempts 2 were made by the neighbors to involve the City. 3 If the City chose to take a blind eye or turn a 4 deaf ear to those complaints being made, that's not our 5 problem. It's your problem. It's a problem that you 6 have and at every tum tried to blame anyone and anything 7 you possibty coutd; i.e., Ramona Market. 8 Every time -- and that comment is directed 9 specifically at Mr. Gutierrez here, who has -- every time 10 we have come before this council, we have been accused of 11 lying about the events that took place. We've been 12 patronized by your cunning and snide remarks, and you 13 have attacked our statements with insulting innuendoes. 14 You have treated us like we have been the ones 15 who have done something wrong when, in fact, we have 16 tried to do -- what we have tried to do is get someone to 17 listen to us and help put an end to the chaos we have had 18 to deat with all this time. 1 9 I do not believe we as civil people would have 20 come to these proceedings with guns blazing, digging up 21 every stitch of evidence we could against Margarita Beach 22 had you -- this council and the city planner's office -- 23 taken us seriously to begin with. You have conducted 24 yourself in a very unprofessional manner treating us 25 citizens the way you have, and that is unacceptable. DIANNE JONES & ASSOCIATES 310.472.9882 Page 26 ~ 1 This is another shot of that same exact skid mark. 2 So I understand that Mr. Davidson and his 3 security team claim that we don~ have anybody coming in 4 and out of our neighborhood and that they have logs to 5 back it up. Yada, yada, yada. These things are 6 happening. We hear it happening 1 :30,2:00 in the 7 morning. Where are the security guards? Who exactly 8 would we call to report that? 9 We neighbors have stood here and shared our 10 individual experiences not only regarding the problems we 11 have endured, but the lack of support and assistance we 12 had up until this point received from the local law 13 enforcement agencies. 14 I personally walked extra patrol forms into the 15 police department requesting the P.O. patrol our 16 neighborhood more frequently during the hours of 17 12:00 A.M. and 2:00 A.M. to help reduce the incident 18 occurrence rates, but somehow the city once again dropped 19 the ball as far as that goes because they have no record 2 0 of these forms. Therefore, their lack of organization 2 1 only reinforces my comments when I refer to our 22 neighborhood as "The Black Hole." 2 3 We have made our comments and we directed them 2 4 to who we thought we were -- who we thought were the 25 correct channels at the time, but received zero response. DIANNE JONES & ASSOCIATES 310.472.9882 Page 28 1 You need to remember that you hold an elected 2 seat on this council. Unless you start pretending to, 3 care about the safety and wetfare of the families in this 4 city, you should probabty find something else to do with 5 your time come next election. 6 Thank you: 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 PRESENTATION MR. MOSHER: Good evening, City Councilmembers. Do you realize that today, it's been a full year we've been trying to resolve this matter? MS. WILLIAMS: Would you identity yourself for the record, please? MR. MOSHER: I'm sorry. David Mosher. I live at 8026 Cambridge Avenue. MS. WILLIAMS: Thank you. MR. MOSHER: Start off, I'd just like to recap some of what's been mentioned prior at the earlier meeting. Mark Davidson would like the City Council to believe that I personally have nothing better to do than sit in my back yard and wait for any kind of noise and then blame it on them. In reality, my wife and I paid over $2,000 for dual-paned windows to stop the noise that DIANNE JONES & ASSOCIATES 310.472.9882 d52b402a-ge83-4535-b780-5eab9a5da4ea Page 29 1 was keeping us up at nights. Well, the noise still 2 continues even with dual-paned windows. That should give 3 you an idea. 4 It's not an every-night thing. This is 5 occasional, but still more than it should be. Whenever 6 we're disturbed by noise, I usually put on something 7 warm, go outside with a cell phone, see where the source 8 of the noise is coming from, and make a call to the 9 police with the details. 10 I make a detailed log in my computer. I can 11 clearly tell if the noise is coming from either 12 Gilberto's Lounge or from Margarita Beach, and I note 13 that in my log. 14 All speakers at the previous meeting for 15 Margarita Beach were paid by Mark Davidson, with the 16 exception of one person that stood up and raised their 17 hand. For a bar that claims no wrongdoing, the owner has 18 hired the services of two high-priced attorneys, a sound 19 engineer, two retired police officers who testified they 2 0 heard no noise during the few days that they were there. 21 How can this accurately discredit the noise 22 problems that all these residents have been complaining 23 about for over two years? It can~. All of the people 24 who signed the petition who are a resident -- my 25 petition -- oh, excuse me. DIANNE JONES & ASSOCIATES 310.472.9882 Page 31 1 sound as I had stated before and showed you on my 2 video -- urination. 3 This is a photo I took afterwards. That's 4 actually in the parking lot. I observed the 5 individuals -- a number of them all got in the same 6 truck -- watk from the front of Margarita Beach around to 7 Ken's Japanese Restaurant, which is backed up. This is 8 behind my fence. I looked over the fence and took this 9 photo with my digital camera. l'll teave this for the 10 City Council. This is to give you an idea of what we 11 deal with. 12 That's it. 13 14 15 16 17 18 19 20 21 22 23 24 25 PRESENTATION MR. SANCHEZ: Good evening, Councilmembers. My name is Ed Sanchez. I reside at 9869 Estacia Court here in Rancho Cucamonga. MR. MARKMAN: Diane, you want -- MR. SANCHEZ: At the January 18th-- MS. WILLIAMS: Mr. Sanchez, if you'd wait just a second. MR. MARKMAN: We'll take a few minutes white everybody files out. MS. WILLIAMS: We've got a little distraction. DIANNE JONES & ASSOCIATES 310.472.9882 Page 30 ' 1 All of the people who signed the petition who 2 are residents -- this is Margarita Beach's petition -- 3 don't even live near Margarita Beach, as do we, at least 4 within the vicinity. So their support is only to keep 5 the bar open. 6 As said in Mark Davidson's own words, "My sole 7 goal is to remain in business." That is exactly why 8 Mr. Davidson has gone to great lengths to try and 9 discredit all the local residents who have legitimate 1 0 complaints. Each of us residents local to the bar have 11 more important things to do than make false accusations. 12 Out of the 35 signatures I personally got from 13 residents in my area, Mr. Davidson's investigator only 14 found one person who claimed that they made a mistake 15 slgnmg. 16 City Councilmembers, I ask that you vote to 17 uphold the planning commission's decision and uphold the 18 law as it is written in the permits, not as Mr. Davidson 19 perceives it. 20 Also, I don't know if you can -- if this is 21 working. I'd like to post a photo. On Wednesday, 22 November 20th at 2: 19 A.M., I was awoken by some loud 23 screaming and yelling and went out to see someone 24 screaming and yelling, revving up their car -- a guy with 25 atruck. I went to get his license number and heard the DIANNE JONES & ASSOCIATES 310.472.9882 Page 32 1 MR. MARKMAN: Can't hear you. 2 MS. WILLIAMS: It's not -- the microphone is 3 picking up them and not you. 4 I'm sorry, Mr. Sanchez. Go ahead. 5 MR. SANCHEZ: Okay. Let me start over again. 6 MS. WILLIAMS: ptease do. 7 MR. SANCHEZ: At the January 18th meeting, you 8 heard testimony from Mark Davidson's paid experts, "The 9 situation in our neighborhood is so good that all you 10 could hear was crickets," and that he is a good neighbor. 11 That's great, but that's not why we're here. We're here 12 simply because of the land use issue. 13 This issue is, is Mark Davidson operating the 14 business that he's permitted to operate? Our contention 15 is that he is not. We have provided you with evidence 16 that he operates a nightclub. Even Mr. Reiss called it a 17 club during the last council meeting. 18 Mark Davidson's permits and ABC license state 19 that he is to operate a full-service restaurant that 20 sells alcoholic beverages in conjunction with food and 21 has entertainment with small bands or individual 22 musicians. 23 Mark Davidson's application for his annual 24 business license from the city states that he operates a 2 5 restaurant. His business name is "Restaurant Ventures." DIANNE JONES & ASSOCIATES 310.472.9882 d52b402a-ge83-4535-b780-5eab9a5da4ea Page 33 1 After reviewing his ABC license, we found that all of his 2 pennits and ABC license are all combined with one another 3 to define what type of business this should be. This is 4 not done by a mistake. 5 His ABC license, Type 47; with requirements that 6 states that he operates a bona fide public eating place, 7 which means a place which is regularly and in a bona fide 8 manner used for the serving of meals to the guests for 9 compensation. In other words, a full-service restaurant. 10 The planning departri1ent and the planning 11 conunission issued the conditional use pennits and the 12 entertairunent pennits to businesses that can become 13 problematic like Margarita Beach. The conditional use 14 pennit and the entertairunent pennit and the ABC license 15 are performance contracts. They all work in unison to 16 define how the business is to be operated. 17 Can I have this lit, please? 18 As Jim Olson stated earlier, back on March 4th 19 of '96, Mark Davidson wrote a letter to Brad Buller. The 2 0 statement, once again, is that he wrote there in the 21 first paragraph: "As you are aware, I have entered into 2 2 an agreement to purchase the business currently known as 2 3 Skipper's Grill & Bar. Pursuant to your request, I have 2 4 reviewed CUP 88-45 for this location. I do hereby state 2 5 that I am aware of all the conditions set forth and do DIANNE JONES & ASSOCIATES 310.472.9882 Page 35 1 Conditional Use Pennit 88-45, and the reason for it was 2 to enhance the operation of the restaurant such as 88-242 3 was also. What that did is it wound up expanding the 4 facility by about 1,000 square feet -- a little over. 5 1,000 square feet, which basically made the business 6 one-third larger. 7 It pennitted live entertairunent in conjunction 8 with the restaurant and bar with small bands, D.l.s, and 9 comedians from 8:00 P.M. to 2:00 A.M. It changes the 10 name from Siam Gardens to Skipper's Grill & Bar and 11 extends the hours of operation from 11 :00 A.M. to 12 2:00 A.M. for closing. 13 In that resolution, you can see in that area 14 that I have squared off there, there is a condition that 15 is in there that was in the 88-242 resolution, and the 16 wording is identical: "The serving of atcoholic beverages 17 must be in conjunction with restaurant usage and the 18 availability of full-listed menu items. The sale and 19 serving of alcoholic beverages shall cease when such menu 20 items are not available to customers." 21 And the last of his pennits is the entertairunent 22 pennit, and that is -- see, what happens is is that they 23 had to create a pennit based on what they said on 24 88-242(a), that they could pennit entertairunent. So what .2 5 had to happen by the planning department is they had to DIANNE JONES & ASSOCIATES 310.472.9882 Page 34 1 I 1 hereby agree to comply with those said conditions." 2 I'll still keep this lit, please. 3 For the audience and even people at home, I want 4 to show the pennits and give you a summation as to what 5 it is they do. 6 Now, you can see this is Resolution 88-242. It 7 is a resolution that enhances the Conditional Use Pennit 8 88-45. In that pennit, what it is designed to do, it's 9 designed just for the sale of hard liquor to be consumed lOon the premises. 11 If you look a little further down and you read 12 this Resolution 2(b), the applicant -- okay -- the 13 application is for the incidental sales of alcoholic 14 beverages as menu items in conjunction with the sales of 15 food. 16 Condition No.5, it is stated here that the 17 serving of alcoholic beverages must be in conjunction 18 with restaurant -- and I emphasize -- must be in 19 conjunction with restaurant usage and the availability of 20 full-listed menu items. The sale and serving of 21 alcoholic beverages shall cease when such menu items are 22 not available to customers. So in other words, when the 23 kitchen closes, he's supposed to stop serving alcohol. 24 The second resolution is Resolution 88-242(a). 25 Now, that resolution still is applicable to the DIANNE JONES & ASSOCIATES 310.472.9882 Page 36 I 1 create this pennit, this entertairunent pennit which is a 2 stand-alone. It goes with all of the other pennits 3 combined. 4 In this particular pennit, what it does is it 5 provides the entertairunent, once again consisting of 6 small bands and comedians, I believe. Excuse me. I kind 7 of lost my place here. 8 Then what it does is it reinforces the 9 restaurant usage. Right there at the top, it states that 1 0 Skipper's Grill & Bar is a full-service restaurant 11 serving alcoholic beverages. What it does is extends the 12 hours from -- let's see. No. That's basically what I 13 wanted to say. 14 Skipper's Bar & Grill is a full-service 15 restaurant serving alcoholic beverages. So that gives 16 you an idea-- 17 MR. MICHAEL: Excuse me, Mr. Sanchez. 18 What page was that on? That's Resolution -- 19 MR SANCHEZ: It's on Resolution 91-84. It's 20 page 2, Resolution 2( c). 21 MR MICHAEL: Okay. Thank you. 22 MR SANCHEZ: After reviewing all these pennits, 23 you wind up realizing that this is -- the use of a 24 restaurant is the theme throughout this entire process of 25 pennits. It doesn't change. It's consistent. It says DIANNE JONES & ASSOCIATES 310.472.9882 dS2b402a-ge83-4535-b780-5eab9a5da4ea Page 37 1 that this is for restaurant usage. 2 At the January 18th council meeting here, 3 Mark Davidson was asked by Councilman Michael as to 4 whether he received a copy of CUP 88-45. Mr. Davidson 5 said "no," then said "yes." Then Councilman Michael 6 asked Mr. Davidson when he took over Skipper's business 7 under 88-242(a), was there any sense that you would have 8 to comply under 88-242 in the future? 9 Mark Davidson's conunent was, and I quote, 10 absolutely not. I complied with the 91 CUP that I 11 thought governed my operation. 91 supersedes 88-242, and 12 that 88-242 was irrelevant because he bought Skipper's. 13 End of quote. 14 I thoroughly studied these pennits, and nowhere 15 have I found any statement that Resolution 88-242(a) or 16 Resolution 91-84 -- that anything there reads that it 17 supersedes 88-242. So in other words, 88-242 is still in 18 effect. All that 88-242(a) did was enhance by increasing 1 9 the size and changing the name, offering entertainment. 20 Mr. Davidson decided to pick and choose which 21 pennits or resolutions under which he would operate his 22 business. That is not the way the pennit process works. 23 Well, let's see. 24 Pennit 88-45 and Resolution 88-242 is for a 25 restaurant that serves incidental sales of alcohol in DIANNE JONES & ASSOCIATES 310.472.9882 Page 39 1 department and the planning commission having to endure 2 this public hearing and appeal process. 3 And finally, there is you, the Council, who has 4 to render a decision on this appeal. Don't let 5 Mark Davidson impose his will upon you too. I strongly 6 suggest that you uphold the recommendations of your 7 planning staff and ptanning commission and vote "yes" on 8 Resolution 05-50 and OS-51 by denying his appeal. 9 Thank you. 10 MS. WILLIAMS: Thank you, Mr. Sanchez. 11 Would anyone else care to address the council? 12 13 14 15 16 17 18 19 20 21 22 23 24 25 PRESENTATION MR. LIBERTORE: Good evening. MS. WILLIAMS: Good evening. MR. LIBERTORE: My name is Larry Libertore. I live at 9870 Estacia Court. I wasn't going to say anything, but I might as well put my two cents in here. I have resided in Rancho Cucamonga more than 20 years. We must remember that this whole thing started when this establishment neglected to keep his patrons out of our neighborhoods and off our properties. There is no reason for me to be here if they didn't invade my space. We went through numerous summers by being abused, and now DIANNE JONES & ASSOCIATES II 310.472.9882 Page 38 1 conjunction with the sales of food. This document is the 2 foundation that this pennit -- and you sit there and you 3 look at Resolution 88-242(a) and Resolution 91-84 were 4 pennitted to enhance the primary use ofthe operation, 5 which was still a restaurant. 6 You, the Council, would have to take a 7 tremendous leap of faith to believe Mark Davidson's 8 contention that Resolution 88-242(a) and 9 Resolution 91-84 allow him to operate his business as a 1 0 primary entertainment venue like a nightclub. 11 On July 13th, 2005, the planning staff and 12 planning commission found Mark Davidson in viotation of 13 his continued use pennit and entertainment pennit. 14 Resolution 05-50 and 05-51 bring this business back to 15 what it was originally intended to be, and that is a 16 full-service restaurant. 1 7 In closing, remember this has been ongoing for 18 ten years. Mark Davidson has chose to operate his 19 business. He has been imposing his will on others. 20 I ask myself, Who are those others? Well, they 21 are my neighbors and all the residents surrounding 22 Margarita Beach. They are the police and fire department 23 that have to provide services for this establishment. 24 They are your city's staff, their time and effort having 25 to deal with this establishment. They are the planning DIANNE JONES & ASSOCIATES 310.472.9882 Page 40 1 a decision is needed to prevent this from happening 2 agam. 3 Although it has quieted down lately, there are 4 still a few strays that wander in the neighborhood and 5 turned away by the security. The lawyers and all the 6 people that are involved now never had a chance to see 7 what we went through all through those summers. I just 8 hope we can get this sotved soon and go on with our 9 lives. 1 0 It is your decision to make sure that we are not 11 violated again and that our police are not abused by a 12 business that clearly does not fit in our neighborhood. 13 It's a restaurant -- if it's a restaurant, it's a 14 restaurant. If it's a nightclub, it's a nightclub. 15 Please make a decision. 16 Thank you. 17 MS. WILLIAMS: Thank you. 18 I remind you again, please sign after you speak 19 or before you speak, especially for the spelling of your 20 name. 21 22 23 24 25 PRESENTATION MR. LYONS: My name is John Lyons, and I reside at 11984 Dorset Street. I was tom which way to go on DIANNE JONES & ASSOCIATES 310.472.9882 d52b402a-geB3-4535-b7BO-5eab9a5da4ea Page 41 1 this in the beginning, and I listened to these public 2 hearings and I didn't want to speak until the end. 3 The first problem I have is the traffic problem 4 That is clearly the City's responsibility to take care of 5 that. You guys are not doing your job. You should have 6 done your job. This off-site drinking? Christ. He 7 doesn't serve off-site premises. Somebody else is buying 8 it somewhere else and bringing it in. There again, the 9 City should have responded. I don't know. Your code 10 enforcement, maybe we ought to have them work at night. 11 I bet they'll love that. 12 I mean, you know, these people in the cars. 13 Again, that's a City -- you guys need to get out there 14 whether you use the sheriff's department or you use code 15 enforcement. I don't care. Maybe even put a reserve 16 deputy on the street. That will keep those folks away. 1 7 Get them a breath analyzer out there or something, but 1 8 there needs to be something to do to stop them. 19 Now, on the one hand, I'm tom with the 2 0 residents and what they said. I mean, I certainly agree 21 with them and sympathize with them. I mean, I would shut 22 them down in a heartbeat. But on the other hand, I look 23 at this public hearing, and I don't think the public 24 hearing was fair. I think Rex put the residents on trial 2 5 when he started -- when you started cross-examining them, DIANNE JONES & ASSOCIATES 310.472.9882 Page 43 1 got too many people. That's a problem. 2 What I suggest you do is relocate them to an 3 area where they can run just the type of business they 4 want to do; streamline the process so that you can get 5 them moved as quickly as possible. I know this coutdn't 6 be done overnight, but many businesses have outlived it. 7 They've created more employees, more customers than 8 possibly they can exist with. That's what I'd like to 9 see you do. 1 0 If we go to court, you're going to spend a half 11 a million dollars of our taxpayers' money, which I 12 don't -- 1 remember when you tried to shut down the 13 Cow Girl. The same thing happened. It went to court and 14 it was battle after battle after battle, and it my tax 15 dollars. I watched you spending them. 16 You know, you talk about that guy urinating in 17 the street. Well, that's what you guys were doing when 18 you tried to shut down the Cow Girl, just wasting our tax 19 dollars. 20 Like I say, let's work on a plan to relocate 21 them to somewhere where they can run the type of business 22 they want to do and they won't be a problem with the 2 3 residents. Maybe you could streamline the process and 24 avoid the permits or make them cheaper and just make it 25 quick. Then somebody else can go in there and do DIANNE JONES & ASSOCIATES 310.472.9882 Page 42 i 1 you changed the scope of the hearing. 2 Margarita's attorney wanted to respond to that, 3 and Diane Williams wouldn't let them respond to that. 4 She continued -- I think that was unfair; that the 5 hearing should have -- these people, they came to give 6 testimony at a public hearing, not to be cross-examined. 7 They should have been put under oath at that point, but 8 Margarita shoutd have been allowed to respond. 9 What I see happening is very simple. They had 10 employees who said they couldn~ speak at the planning 11 commission meetings. What I see happening is they're 12 going to take the City to court and they're going to say 13 they didn't get a fair public hearing if you shut them 14 down, and they're going to be right. They didn't. The 15 whole facts are going to get twisted and turned around. 16 And then when you start the process over again, 17 they're going to say, "You're picking on us." They're 18 right. I mean, this is something -- what I think we 19 ought to do is we have problems in the rest of the city. 20 Forget Margarita Beach for a minute. 21 I could take you over to Wa1mart. When they 22 came in here, we had 60,000, 70,000 people. Now we've 23 got 160,000 people. Back in 1995, we had about 120,000 24 people. Now we've got 160,000 with all kinds of people 25 surrounding it, and we created our own problem We've DIANNE JONES & ASSOCIATES 310.472.9882 Page 44 1 something else. 2 Thank you. 3 MS. WILLIAMS: Thank you. 4 Woutd anyone else care to address the council? 5 Are you just standing up or coming forward? I'm 6 trying to read the body language here. 7 MR. MARKMAN: If the council has any questions 8 of the people. 9 MS. WILLIAMS: If we could ask some questions of 10 the people who have spoken. If you have any questions, 11 this would be the time to do it. 12 MR. MARKMAN: If not, there's two -- 13 MS. WILLIAMS: We need to take a break shortly. 14 So either we do the questions here or allow for -- 15 MR. MICHAEL: I do have a question for 16 Mr. otson. 17 MS. WILLIAMS: Ptease, Mr. Michael. 18 MR. MICHAEL: I made some notes here, and I'm 19 not sure why I made them. But it caught my -- struck me 2 0 because I happen to know intimately our sheriff's 21 department and the fine job they do and the fine job they 22 attempt to do each and every day, as well as all of our 23 public safety personnel. 24 You indicated -- and the departments and their 25 commitments, whether it's the planning department or DIANNE JONES & ASSOCIATES 310.472.9882 dS2b402a-ge83-4S3S-b780-Seab9aSda4ea Page 45 1 their engineer deparbnent. 2 You said quite simply that the city staff and 3 the sheriffs deparbnent and the police deparbnent have 4 not done their jobs. Can you refresh my mind on what you 5 were referring to there? 6 MR. OLSON: I will. Actually, I said the 7 individuals and agencies within the city. I did not 8 specifY any particular deparbnent, but I will elaborate 9 on that. 1 0 I will go back to calls that were made back in 11 August of this year. I made three separate calls, and it 12 took the sheriffs deparbnent an hour and 20 minutes to 13 respond to me. Three separate calls to -- first was the 14 initial, obviously, to report a problem. The second call 15 was to say "Where are they?" Third call was "Forget it. 16 They've already left." 1 7 Five to seven minutes after that, an officer 18 showed up. Not only did one show up -- because I went 19 out there to greet him and wound up speaking to him in 20 the street, but a second officer also came by. Now, I'm 21 not going to criticize the officer in the street. I've 2 2 had dealings with the officer in the street. 2 3 About a year and a half ago, I had a bicycle 24 accident and I hit a road -- a depression in the road 25 that ultimately was discovered that the water department DIANNE JONES & ASSOCIATES 310.472.9882 Page 47 1 Well, actually we're right on time to when I had 2 said we would take a break so that the court reporter -- 3 MR. MARKMAN: When we come back, they woutd have 4 an opportunity -- 5 MS. WILLIAMS: To respond? 6 MR. MARKMAN: -- to respond. Surrebuttal. 7 MS. WILLIAMS: We'll take about five minutes, 8 please. 9 (Pause in the proceedings.) 10 MS. WILLIAMS: Okay. We'll call us back to 11 order. 12 We are going to continue the hearing on the 13 appeal of the ptanning commission's -- whatever it was -- 14 plannh1g commission's ruling. 15 Anyone else would care to address the Council? 16 17 18 19 20 21 22 23 24 25 PRESENTATION MR. REISS: Good evening, members of the council, Mr. Markman, Mr. Lam. Again, reintroducing myself, I'm James Reiss, Reiss & Johnson here in Rancho Cucamonga. I'm local counsel for Mr. Davidson for a number of years. I'm basically here to address the -- not rebut things that were said here tonight, but to kind of DIANNE JONES & ASSOCIATES 310.472.9882 Page 46 i I 1 had done some repairs on and not completed the repairs. 2 And I hit this depression, sinkhole type of thing that 3 was not marked nor repaired at about 30 miles an hour. 4 Therefore, I hit the ground about 30 miles an hour. 5 I have nothing but praise for the fire 6 deparbnent and for the police officer on the street, 7 although I'm going to admit that I would be the first to 8 question some of the administrative policies of the 9 sheriffs deparbnent. I don't know that ifthis is 10 standard procedure where we don't get reports written or 11 if it's selective enforcement. I just don~ know. And I 12 have a real problem with that, obviously. 13 When the planning commission directed 14 Sergeant Morrison to review the calls for service to try 15 to figure out what was going on, apparently there were 16 nearly 500 calls for service. He sat down with 17 Mark Davidson and allowed Mark Davidson to help him 18 determine what calls for service were directly related to 19 Margarita Beach. You'd be laughed out of a court of law 2 0 if you tried to present that. 21 MR. MICHAEL: Thank you. I can assure you that 22 wasn't selective enforcement. 23 MR. OLSON: Thank you. 24 MS. WILLIAMS: Any other questions? Anybody 25 have any questions for anyone who spoke? DIANNE JONES & ASSOCIATES 310.472.9882 Page 48 1 wrap up what we think that the issues are. Mr. Davidson 2 and Mr. Weston will address the specific issues before 3 you. Things have been presented to you for a vote 4 tonight, and I think that you1l100k at those things. 5 The first thing I wanted to address was to 6 Councilman Spagnolo because there was a question you 7 asked at the last hearing about an issue concerning were 8 these people paid? In other words, we had people . 9 surveying issues, we had people monitoring, we had people ' 10 doing noise evaluations. ' 11 Let me just explain to you what -- 12 MR. MICHAEL: Mr. Reiss, there are some people 13 in the audience who are having trouble hearing. 14 MR. REISS: Okay. Let me just exptain to you 15 what I believe are relevant issues to that. 16 In our profession, whenever -- I'm not sure this 1 7 is really working. m raise my voice. 18 MS. WILLIAMS: You can bend it to point at you. 19 There you go. 20 MR. REISS: Is that better? 21 MS. WILLIAMS: Okay. You're a demonstrative 22 speaker, but you're still going to have to locate 23 yourself in front of the microphone. 24 MR. REISS: I'll stay in the box. 25 MS. WILLIAMS: There you go. DIANNE JONES & ASSOCIATES 310.472.9882 d52b402a-ge83-4535-b780-5eab9a5da4ea Page 49 1 MR. REISS: Councilman Spagnolo, let me explain 2 to you what I think the issue is. 3 We're presented with a set of what I would 4 consider to be very, very specific allegations. Many of 5 those could be rebutted or not rebutted or proven by 6 independent observation. In litigation, Mr. Markman will 7 tell you, and I'm sure you've read cases and you've seen 8 cases the city's been involved in that basically you go 9 out and you hire people not so much to say, "We'll tell 10 you what to say. Just have the best credentials." 11 We must do this, and the government does it all 12 the time in criminal trials. They do it all the time in 13 civil trials, whether it be police abuse cases, noise 14 abatement cases, security cases. 15 What we tried to do by bringing in Mr. Rhetts 16 and Mr. Gooselaw and Mr. Newson -- in answer to your 17 question, they were paid; but much like everybody else, 18 they did independent observations because we had to 19 produce something to you that would rebut what they're 20 saying and whether the problem still existed. 2 1 So I wanted to address that to you. I heard 2 2 that you said that at the last council meeting, and I 23 know that it tooks like "It's such a bias situation. 24 These are paid wituesses. Why should I believe what they 25 have to say? You're going to cook the books. You're DIANNE JONES & ASSOCIATES 310.472.9882 Page 51 1 She totd you, unless you close them down -- 2 unless you effectively legislate them out of business, 3 they're not going to rest. I think you can actually look 4 atthat. 5 MS. WILLIAMS: Is that someone's cell phone? 6 Turn off your -- no? 7 MR. REISS: We're trained to keep them off. 8 Let me just explain to you, she brought to you 9 tonight no new specific facts. Nothing. She was the 10 opening speaker, and she was probably here to kind of 11 give a summary of what's gone on. And I respect her for 12 that, but she brought you nothing tonight. Nothing new. 13 Absolutely nothing new. 14 She basically said to you -- she quoted an 15 anthropologist. She said basically, "We're here to make 16 a change, and 35 residents can make a change and we're 17 going to prove to everybody in the City of Rancho 18 Cucamonga that we can push a business around. We can do 19 what we want, and we're going to stay on it and stay on 20 it and make you feel terrible as a city council if you 21 don't vote in our favor." 2 2 But that's not what we're here for tonight. 2 3 We're here for you to weigh all of the evidence that's 2 4 gone on over this past four months and almost a year now 2 5 that evidence has been presented. DIANNE JONES & ASSOCIATES 310.472.9882 Page 50 1 1 going to doctor everything." 2 You had a chance to look at those people. 3 You'll evaluate them. You're the trier of fact in this 4 case, and I would ask you to cut them some slack on the 5 issue of being paid only because on all situations, 6 whether it be the defendant of the city or of 7 Mr. Davidson, that that issue is relevant. But it's only 8 relevant ifit goes to weight of what you decide. 9 I think Mr. Rhetts' and Mr. Gooselaw's detailed 1 0 logs are very, very important because the issue we talked 11 about with crickets -- Mr. Sanchez made light ofthat. 12 But when noise is being an issue and people are out there 13 with video cameras, saying "I can hear everything that 14 goes on there," and that's rebutted, that's something 15 that you really have to consider. You really have to 16 consider that. 1 7 So let me address the specific issues that were 18 brought to you tonight. I can tell you what I think in 1 9 reference to what's gone on. 2 0 The first speaker we had was Peggy Sanchez, the 21 wife of Ed Sanchez, a 20-year resident of the area. 22 She's very upset with Margarita Beach. I believe that 2 3 the ultimate issue that she talked about was a small 24 group of people can make a change and make a difference, 25 and she's going to prove that tonight. DIANNE JONES & ASSOCIATES 310.472.9882 Page 52 1 The second speaker was Ms. Black, who talked 2 about being -- for lack of a better term -- thrown out of 3 Margarita Beach on November 12th. 4 Let's turn this around and put you in the shoes 5 of Mr. Davidson. For 11 months, he had been attacked by 6 this neighborhood. One of the people that are involved 7 in this shows up in his restaurant/bar after weathering a 8 five-hour storm of negative, nasty comments about himself 9 and about how he runs his business. 10 1bis person shows up solely to gather evidence, 11 not to come to a neighborhood bar. She's talking about 12 things that she obviously was taking stock of. Exactly 13 the thing that any person in litigation would be worried 14 about. So he politely asked her to leave. She wasn't 15 thrown out. 16 The issue about the petitions is they are for 1 7 you to show that basically class warfare -- she says, 18 "These people rent. I own. So therefore, take my word. 19 It's better than theirs." That is just an unfair and 2 0 ridiculous statement. A ridiculous statement that a 21 person who rents is somehow worth less than a person that 2 2 owns a home. So therefore, somebody that owns two homes 2 3 should have two votes. Well, it doesn't work that way. 2 4 It just doesn't work that way. 2 5 And I'm insulted that somebody would ever make DIANNE JONES & ASSOCIATES 310.472.9882 d52b402a-ge83-4535-b780-5eab9a5da4oa Page 53 1 that statement about "Well, they rent and 1 own in the 2 neighborhood; so therefore, listen to me." It's 3 absolutely incorrect and wrong. 4 As far as Mr. Davidson asking her to teave, 5 think about yourself. If your neighbor was suing you and 6 he came over to your house uninvited for dinner and you 7 said, "Can 1 ask you to leave?" You said, "No. I'm 8 going to go ahead and stay and watch the rest ofthe ball 9 game," you'd ask them to leave as politely as possible, 1 0 and that's what he did. 1 don't think it should be 11 viewed negatively on Mr. Davidson. 12 Mr. Olson, to me, is the speaker that cries the 13 loudest, that yells the loudest, and is the most upset 14 because he's the one that said, "1 will not rest until 15 this place is out of business." He said it during the 16 sununer. He says it now. 17 He's brought in some ridiculous things tonight. 18 He brought you an Internet site that says it's shut down. 19 That's what we've told you. It's shut down. But because 2 0 it says, "We'll be back soon," we're around the comer 21 waiting for these last hearings. That proves nothing. 2 2 That paragraph that he downloaded means nothing. 2 3 Then he told you about some paid program that is 2 4 literally five years otd. You'll hear it from 25 Mr. Davidson. This bikini beach is five years old. He DIANNE JONES & ASSOCIATES 310.472.9882 Page 55 1 To tell us right now that the police are not doing their 2 job because one man stands up and says, "Well, they put 3 me on hold for an hour and a half," he's got no objective 4 proof. He's got nothing. He's got absolutely nothing. 5 The problem is, why didn't he go out and do 6 something about it? Where is the written complaint? 7 Where is it? I know if I was waiting for a hour and a 8 half on hold, I'd make a written complaint. It's not 9 that hard. There's nothing. There's no credibility to 1 0 anything that he says. 11 Ms. Scimone, the fourth speaker, is very upset 12 with Councilman Gutierrez, and 1 think that he'll make 13 any statements that he has to. 1 heard those statements, 14 and that's one person's opinion. 15 But 1 think what's really upset me is that we've 16 seen skid marks and we've seen burnout marks in a 17 neighborhood. She candidly says to all of us, "We can't 18 link them to Margarita Beach." But why does she bring 19 them up at a Margarita Beach hearing then? Aren't you 2 0 implicitly saying that it must somehow be related to 2 1 that? 2 2 No other investigation. It just tacitly says, 2 3 "Those must have come from the operation of 2 4 Margarita Beach." 1 respectfully say to you that that 2 5 does not hold water; that there's no testing. There's DIANNE JONES & ASSOCIATES 310.472.9882 Page 54 1 I I 1 doesn't have a copy of it. It doesn~ say anything to 2 you. He says he's channel-surfing and he finds a bikini 3 show. That's what he says. There's nothing else to 4 prove that except what he says. 5 Then he shows you a party certificate that just 6 has the words "party" on it. So now we are being 7 criticized -- Margarita Beach is being criticized for the 8 word "party," "party," "party" about Thanksgiving. 9 That's what it says. There's no nudity. There's nothing lOon that that somehow would shift gears again to this 11 illegal advertisement or what I would say "unsavory" 12 advertisement. 13 Mr. Olson specifically talks about things that 14 are irrelevant to this, and then he goes one step 15 further. I think that Councilman Michael hit it on the 16 head. 1 know that the representatives of all the 1 7 departments are here tonight. 18 He basically says that the law enforcement and 19 code enforcement are not doing their job and that the 20 reporting is just going unsaid; that it's selective 21 enforcement; that somehow Mark Davidson has got them in 22 his hip pocket, and he'll tell them what to do and what 23 to report. That is so insulting to the people that work 24 in that department, the people that protect us. 2 5 My office is here. It's been here for years. DIANNE JONES & ASSOCIATES 310.472.9882 Page 56 1 nothing done to show that these skid marks somehow were 2 caused by the operation of Margarita Beach. 3 And specifically, 1 think that they don't all 4 recognize that as of2005, 2006, those problems have been 5 solved. The problems have been solved. Whether they've 6 been solved with security, whether they've been solved by 7 patron information, whether they've been sotved by just 8 courteous patrons and neighborhood people, it's been 9 solved. It's a nonissue. It's a nonissue. 10 She rattled off a few things; vandalism, 11 parking, traffic, noise, sexual activity, urination, all 12 of these things. By her own admission, these things have 13 been stopped. They've been stopped cold. 14 The question before you is not whether or not 15 they're still doing this, but 1 think what the last 16 speaker talked about was "1 haven't been here very often, 17 but 1 want to tell you, 'ptease sotve this forme'." 18 What they're worried about is is that if you vote in a 19 certain way and Margarita Beach is allowed to continue, 20 that they'll just go back to business as usual. I think 21 that's everyone's biggest fear. 22 Mr. Weston will address, and so will 23 Mr. Davidson address, how that cannot be. There are so 24 many conditions that they're going to accept that it 2 5 cannot go back to business as usual that they're afraid DIANNE JONES & ASSOCIATES 310.472.9882 d52b402a-ge83-4535-b780-5eab9a5da4ea Page 57 1 of. I want you to understand that's a huge issue because 2 the residents are concerned that they've spent a year 3 here, they go back, and in three years, they have to come 4 back to you and say "See, we told you. We told you." 5 We addressed all of those issues. I think 6 Mr. Weston and Mr. Davidson will talk to you how there 7 are safeguards involved. 8 I'll go to the last two speakers. 9 Mr. Mosher is a very difficult individual to 1 0 address because he says, "I'm not the kind of person that 11 goes out in the middle of the night and videotapes," but 12 yet, that's what we got. So he is that kind of person. 13 He is that kind of person who takes a picture of, 14 allegedly, urine in a parking lot. Okay. You're that 15 kind of person. 16 But here's what's unusual about it: He finally 17 acknowledged that noise is coming from Gilberto's Bar. 18 This is the first time. It took 13 months. I heard him 19 today say, "I log it in my computer where the noise comes 20 from." Well, why isn't Gilberto's here? Why isn~ 21 Gilberto's here? Because the only problem he has with 22 Margarita Beach is the noise. Now we say that there's a 23 puddle of urine. You have to decide the credibility. 24 What I say to you is that Mr. Newson, who 25 testified under oath in a declaration, who did testing, DIANNE JONES & ASSOCIATES 310.472.9882 Page 59 1 tell you how to think. But we're all intelligent people 2 here. We all saw what happened over the last four to 3 five months, if not a year. 4 If you don't think that Margarita Beach has put 5 out every effort, every olive branch, every way they can 6 imagine to somehow accommodate the neighborhood, then I 7 don't know what else a business can do in this city. 8 I want you to understand something too. 9 Everybody knows that this is an important case city-wide 10 because if a set of individual residents can come to the 11 city council for a year and keep complaining and making 12 statements -- factual or otherwise -- and businesses are 13 put out of business, if you don't think that other 14 residents are going to take the same approach, whether it 15 be a grocery store, a market, another restaurant, another 16 location, I think we know better than that. 17 I'll leave you finally with this: I would hope 18 that at the end of the day, we can sit down and solve 19 this problem. We have left you with a tot of options. 20 We believe that a lot of the conditions are valid, but we 21 think that two or three of them -- and you'll see 22 those -- are so critical to the lifeblood and to the 23 operation of Margarita Beach that if you legislate them 24 out of business, you will leave us no choice and the next 25 choice is litigation. DIANNE JONES & ASSOCIATES 310.472.9882 Page 58 1 I 1 totd you "Everything conforms with your municipal code." 2 Everything. 3 Finally, Mr. Sanchez. We've ~ome full circle 4 with Mr. Sanchez. This whole thing started with 5 Mr. Sanchez because he had a trailer vandatized, and 6 he'll tell you that that's what started it. He knows 7 that's all been stopped. That's all been solved. There 8 is no problem now. 9 So what is he left with? He's left with an 10 analyzation of years and years of planning documents that I 11 will be addressed by Mr. Weston and Mr. Davidson and I'm I 12 sure the planning staff and your attorneys. But whenever I 13 you see somebody shift gears in a case and whenever you 14 see somebody abandon certain arguments, that tells you 1 5 something about the value of their evidence. 16 In a courtroom that we're addressing nonnally -- 17 not a city council chamber -- I would tell you that 18 Mr. Sanchez has abandoned his case. He's abandoned it. 19 He totally abandoned it. The reason he's abandoned it is 20 because there's no evidence to support it now in February 21 2006. So what he's left with is, it's a club. He cites 22 me as saying, "Well, Mr. Reiss used the word 'club' in a 23 half-an-hour speech. So, therefore it mUst be a club." 2 4 I'll tell you this: That's for your decision. 2 5 I'm not going to tell you how to vote. I'm not going to DIANNE JONES & ASSOCIATES 310.472.9882 Page 60 1 We've talked about money being spent and dollars 2 being spent bringing in high-priced attorneys, bringing 3 in qualified expert witnesses. Why.do we have to go 4 there? Why do we have to go there? 5 I'm asking you: Let's solve this tonight. 6 Let's put our heads together. Let's try to solve this 7 tonight. Let's vote tonight. Let's put this behind us. 8 Put us on a short leash. Let us prove to you what we 9 proved to you for the last year. 10 We have been on probation, and we have passed 11 with flying colors. Give us an opportunity to continue 12 to prove to you that we are right. They are a good 13 neighbor, and they're a good business for 14 Rancho Cucamonga. 15 Thank you. 16 MS. WILLIAMS: Next speaker, please. 17 18 19 20 21 22 23 24 25 PRESENTATION MR. WESTON: Good evening, Mayor Pro Tern, members of the council. I'm John Weston. Once again, I have the honor and pleasure to . appear before you representing the Margarita Beach family of management, employees, and patrons. As has been pointed out, we are here almost a year to the night when DIANNE JONES & ASSOCIATES 310.472.9882 d52b402a-Se83-4535-b780-SeabSa5da4ea Page 61 1 this matter first surfaced before you in February oflast 2 year. 3 An extraordinary event happened a few days ago, 4 and I suppose if one were more kannic than I am, I would 5 have found some cosmic significance in it. But it was an 6 extraordinarily significant episode. 7 You may recall from the materials that I 8 forwarded to you last week, I had sent out a final 9 last-attempt letter to all of the neighbors whose names 10 we had had and to whom I had previously communicated, 11 hoping to have some sort of meeting. I didn't know what 12 I intended or what I woutd likely get. I was hoping that 13 we would be able to get a significant response and we'd 14 be able to meet and discuss. 15 On Friday, I got a phone call. I got a phone 16 call from a neighbor who gave me only a first name, and 17 we spoke for about 15 minutes in connection with that 18 neighbor's feeling that things have gotten out of hand 19 and that that neighbor was interested perhaps in getting 20 together to talk. I was elated and was as receptive as I 21 could be. 22 Monday, I got a call from another neighbor, who 23 mentioned also the receipt of the letter and interest 24 perhaps in meeting and also mentioned the first caller 25 whom I had spoken to on Friday. DIANNE JONES & ASSOCIATES 310.472.9882 Page 63 1 them in a letter this morning, sent them to Mr. Markman 2 I believe it's been circulated to you, but ifI may just 3 quickly summarize what they are so you'll get a sense of 4 some of the things that were discussed. 5 One of the extraordinary things about the fact 6 that people really haven't tatked to each other, people 7 have talked at each other. We've come up here and we've 8 tatked and they've talked and unfortunately, you've had 9 to hear all of it and sort of be the backboard from which 10 things were bounced off to everybody else. 11 But it wasn't until Monday in my conversation 12 with the second neighbor who had the courage to call me 13 that I understood that what was being said was that the 14 butk of their perceived comptaints -- by "perceived," I IS don't mean to denigrate those observations, but the 16 things about which they were complaining occurred almost 17 exclusively at closing time when all the bars close 18 during the course of the evening. 19 I thought that was fascinating for two reasons. 2 0 One, because it allowed us to pinpoint our efforts to try 21 to come up with some solutions; but secondly, it reveated 22 the degree to which what I've been saying is implicitly 23 true, if not explicitly true. That is, we simply weren't 24 talking to each other. We simply were not expressing 25 what was real and we were not able to respond to what was DIANNE JONES & ASSOCIATES 310.472.9882 Page 62 1 To fast-forward, last night, Mr. Davidson, 2 Mr. Reiss, and I met for almost three and a half hours at 3 a local restaurant here with three neighbors, people who 4 have been involved in the situation since the beginning 5 who have spoken often and freely and vigorously to you 6 and expressed their opinion in a way that no one would 7 possibly describe as shy. We spoke with civility, with 8 intelligence, with decency, and as far as I could 9 discern, with extraordinary candor. 1 0 The goal from the beginning, for which I was 11 extraordinarily grateful, was not to hurl invective, not 12 to call names, but to sit as human beings and talk about 13 common matters of concern to see ifthere coutd not be an 14 articulation and an attempt to solve some problem. 1 5 I don't want to convey to you that everybody 1 6 left that meeting conunitted to the notion that the 17 resolution should be reversed and so forth. There were 18 some differences of opinion about that. There was 19 support for that idea, and there was continued 20 opposition. But what emerged from the meeting was the 21 notion that people can talk, people can work together in 2 2 a neighborhood context and identifY issues and 23 collectively come up with solutions. 24 Out of that meeting came five or six solutions 25 which had previously not been referenced to me. I put DIANNE JONES & ASSOCIATES 310.472.9882 Page 64 , 1 real. 2 Let me just quickly raise the -- apparently, 3 there is a street sign at the entrance to Estacia Court 4 off Ramona which says "not a through street." But I'm 5 told -- and I didn't have the chance to go look at it 6 again, but I was told by one of the neighbors that 7 although that sign exists, it's hard to see often and it 8 is not prominently placed. 9 So the first suggestion was that we have two 10 permanent street signs which would be prominently placed, 11 visible, saying something like either "Dead End" or "No 12 Outlet" or "Not a llrrough Street" or some other 13 appropriate message to indicate to drivers, "Don't go 14 down Estacia Court to the west looking to find -- to have 15 it be a through street. It's not a through street. 16 Don't go into the cul-de-sac on Pasito because there's no 17 exit from there." , 18 To the extent that that could be communicated in 19 advance of any Cars at that time of evening coming into 2 0 that area, it would solve a considerable probtem, not 21 least of which is the one that was mentioned by 22 Ms. Scimone with the tread marks. She and 1 were tatking 23 a second ago at the sign-in sheet there, "It's a shame 24 that there's no DNA test to be able to evatuate the tires 25 to detennine from whence the drivers came." DIANNE JONES & ASSOCIATES 310.472.9882 d52b402.-ge83-453S-b780-Se.b9.Sd.4e. Page 65 1 The second thing that we came up with was the 2 notion of a temporary sign. By "temporary," I mean one 3 that could be dragged out in the evening and taken away. 4 A temporary sign approved by the City as to size, color, 5 content, and all the other relative things that cities 6 ought to approve, expressing one ofthe following phrases 7 or similar sentiments: "Resident Traffic Only," "No 8 Commercial Traffic," or "No Through Traffic." 9 The idea being to limit access not only to 1 0 people who -- not just for people to be told "It doesn~ 11 go through," but they ought not to park there. They 12 ought to stay out if they don't live in that area. 13 The idea is that that sign woutd be created and 14 temporarily placed on the northwest comer of Ramona and 15 Estacia Court by Margarita Beach security personnel at 16 relevant times and relevant days so it would be there to 1 7 be seen. 18 Then -- and I thought this was the most creative 19 idea that came out of the meeting -- that that temporary 20 sign to which I've just referred would from 1 :30 AM. to 21 2: 15 AM. on relevant days be physically moved from the 2 2 comer to somewhere in the middle of the entrance, the 2 3 street entrance to Estacia Court. 24 At that time, a Margarita Beach dedicated staff 25 security person would stand adjacent to that sign. DIANNE JONES & ASSOCIATES 310.472.9882 Page 67 1 on Ramona at the alley that goes to the north shopping 2 center south of the residential complex wears a jacket 3 that says "security." We were totd that that jacket is 4 yellow and that at least one of the residents found that 5 it was offensive in the sense that it made it seem to 6 anybody entering that person's neighborhood was living in 7 a security zone, and that it became some badge of 8 criminality or an unsafeness. 9 So we discussed the idea. "Fine. We didn't 10 know that. If it would make folks feel better, why not 11 make it a dark jacket with contrasting white letters 12 saying 'security' on the back?" That seemed to be 13 something of value to at least one of the residents. If 14 that's something that the City would approve or wish, 15 we're certainly happy to do that. 16 Then the last two really focus on and identify 17 what I think is the critical issue. It's a cliche these 18 days to talk about communication and yet, it's probably 19 the single most important and effective tool in dealing 20 with neighborhood disputes. It's for peopte to be able 21 to talk to each other. 22 So it was suggested that the business owner and 23 interested neighbors should regularly meet with an 24 appropriate police official regarding patrol and related 25 community issues. Now, that's different in a sense from DIANNE JONES & ASSOCIATES 310.472.9882 Page 66 ~ 1 Obviously, not in a dangerous way, but to the side of it. 2 We'd get a waiver from that person so that wouldn't be a 3 legat issue. But he or she woutd stand there with the 4 sign to make the point, "This is not for through traffic. 5 This is for -- at that time of day or evening, I should 6 say _: "for the residents who live there." 7 The next suggestion that came from the 8 residents, from the neighbor, expressed concerns about 9 persons going westbound on Foothill making a V-turn at 1 0 Ramona to go eastbound, which would then potentially 11 cause disturbance to the residents of the trailer park 12 either from the V-turns or from radios and so forth. 13 And they were also concerned about persons 14 turning southbound on Ramona from Foothill because that 15 would then put the vehicles in another residential 16 neighborhood. So the suggestion was that V-turns and 1 7 left turns for westbound traffic on Foothill at Ramona be 18 prohibited at Ramona from the hours of midnight to 19 2:30 AM., and an appropriate sign be placed there to 2 0 that effect. 21 Now, the next three changes are less 22 involving -- fonnal tangible issues involving the City, 23 but I want you to get some sense of how people can work 2 4 together to address what the issues are. 25 The Margarita Beach security person who stands DIANNE JONES & ASSOCIATES 310.472.9882 Page 68 , , 1 the neighborhood watch because frankly, Mr. Davidson has I 2 been asked not to participate in a community watch 3 because, so we were totd, that there were some or more of 4 the neighbors who simply did not want his participation. 5 But this would be a meeting that would be 6 specifically set up for residents and the business owner 7 to be able mutually to confer with the police officials. 8 The irony is that there is probably going to be a 9 commonality of interest in some sense. 10 This is not residents versus Margarita Beach. 11 This is going to be residents and Margarita Beach saying 12 to the police, "Gosh, we'd really appreciate it if you 13 could give us a little bit of extra patrol perhaps during 14 the midnight to 2:15 hours so you could police that 15 no-left-turn area or the no-V-turn area" if the City in 16 its wisdom sees fit to adopt. It's that sort of thing. 17 The people who are there dealing with the 18 situation know in a sense what they would tike and would 19 like to be able to discuss it with their official. 20 Lastly -- and I thought this was the most 21 remarkable thing because this did not come from me. It 22 came from the neighbors. 2 3 They said that what they would like is that the 2 4 business owner every other month should contact those 25 neighbors so that interested neighbors could meet with DIANNE JONES & ASSOCIATES 310.472.9882 d52b402a-ge83-4535-b780-5eab9a5da4ea Page 69 1 the business owner on a regular, informal basis growing 2 out of the success, or so it appeared, of our meeting 3 last night to be able to talk quietly amongst themselves 4 about whatever issues were of mutual concern, whether 5 they be Margarita Beach, the relationship between 6 Margarita Beach and the neighbors, or other matters of 7 mutual concern. 8 Tome, that struck me as, in a sense, the home 9 run; the desire for people to get together, to talk to 10 each other respectfully, to listen to each other, and try 11 to craft some solution. 12 So I bring this to you with some elation on my 13 part and hopefully to indicate to you that, in a sense, 14 the system is working in that people are getting together 15 and talking and trying to find mutual areas of . 16 commonality and mutual issues of interest and a solution 17 to their own problems. 18 Now, I contrast that, if I may, to what I view 19 as the actions and the attitude of the planning 2 0 commission, which instead of encouraging dialogue, 21 instead of getting people together to craft solutions, 22 simply ended up with a draconian and punitive resolution. 23 The planning commission heard some comments, 24 heard what has been called "testimony," heard what has 25 been called "complaints." It jumped from one topic to DIANNE JONES & ASSOCIATES 310.472.9882 Page 71 1 to anybody at any time who requested them until closing 2 time. 3. And so that the record may be correct, I ask 4 you, if you would ptease, simply to turn to Tab 4B, as in 5 boy, in the large notebook that I provided. It is an 6 exhibit to Mr. Davidson's declaration. 7 MR. MICHAEL: Tab what? 8 MR. WESTON: 4B, boy, sir. The "B" is at the 9 bottom of the page. You just look for Tab B at the 10 bottom of the notebook. 11 The heading is "Margarita Beach's Restaurant 12 Menu," and it's a full page reflecting the various items 13 that are available at Margarita Beach, ranging from 14 appetizers to burgers to salad to sandwiches to dinners: 15 Santa Fe Chicken Dinner, Monterey Chicken Dinner, 16 Teriyaki Chicken Dinner, T-bone Steak Dinner. All of 17 those items are available when the restaurant/bar is 18 open, when alcohol is being served, when entertainment is 19 available. 2 0 There was a suggestion tp.at there was -- that no 21 one had ever ptaced a menu before you. I wanted to 22 simply clarify that in October, we placed the menu before 2 3 you. 24 25 The planning commission placed great stock in the fact that Mr. Davidson had admitted that there was DIANNE JONES & ASSOCIATES 310.472.9882 Page 70 1 1 another to another. And in what I can only say would be 2 described as somewhere between the bizarre and the 3 nightmarish, came up with these conclusions: 4 That notwithstanding the fact that there are six 5 or seven places that sell alcohol within about a 6 quarter-mile area, that there is a large residential 7 complex with inadequate parking, and that there was a 8 business that had never had any ABC problems -- it had 9 not previously been before the City for discipline or 10 review -- detennined that every problem in the 11 neighborhood was singularly and specifically attributable 12 to Margarita Beach and basically voted to pull the 13 plug. 14 No progressive discipline. No "tet's work 15 together." No recognition of the significant and 16 hands-on involvement of Mr. Davidson and his staff to 1 7 address the problems. Just simply, "You're out. 18 Ten Count. Goodbye. Turn out the lights." 19 What was it that they found? Well, they found 2 0 because Mr. Davidson forthrightly stated it when asked, 2 1 that he had erroneously stopped serving food at 2 2 1 0:00 P.M. What they didn't say is after he forthrightly 23 stated it, he immediately changed it in March. So if 24 they had gone in in April or June or July or last night, 25 they would have found the full menu items being available DIANNE JONES & ASSOCIATES 310.472.9882 i Page 72 1 smoking present and that, in fact, there had been a 2 citation and it had been resolved. 3 But what the planning commission didn't say is 4 that after further discussions with Mr. Davidson about 5 . this, about how to comply and how to deal with it, he 6 ultimately promptly, very quickly after his subsequent 7 discussions with the relevant authorities completely 8 acquiesced in what he was not sure they were correct in 9 in terms of what they wanted with respect to ashtrays and 10 so forth and said, "Okay. You want it that way. We1t 11 do it that way," and did not mention in their reports, 12 did not acknowtedge the fact that in subsequent months, 13 there was no smoking. 14 The issue was dealt with and addressed and 15 resotved. And instead, like the food issue which had 16 been corrected, the smoking issue became also a basis -- 17 a basis for the early closing and the imposition of an 18 inappropriate, heretofore unknown, and fatal required 19 ratio of food sales to alcohol sales. 2 0 I note because I'm trained as a lawyer, but not 21 because it's terribty important, that the conditional use 22 pennit makes reference to compliance with public health 23 codes. To the best of my knowledge, there is no public 24 health code in the State of California. There's 25 something called the Health and Safety Code, but the DIANNE JONES & ASSOCIATES 310.472.9882 d52b402a-ge834535-b780-5eab9a5da4ea Page 73 1 smoking violation was a violation ofthe Labor Code. The 2 conditional use pennit did not require compliance with 3 the Labor Code. 4 Now, let me be very clear. I'mjust being 5 lawyer-like with you here. Smoking is against the law in 6 public -- in places where people are employed. It 7 shouldn't go on. The law says it shouldn't, and it 8 doesn't go on in Margarita Beach. I'm simply pointing 9 out that to the extent we are being hypertechnically 10 legal in focusing on that, it was not a violation of a 11 specified and stated condition. 12 I don't want to excuse it. I don't want you to 13 think in any way that that is something that is going to 14 be resumed or that it has been resumed. It won't be and 15 it hasn't. In fact, in the conditions that have 1 6 promulgated with which we do not take issue, one of the 17 things is state taw -- compliance with state law. That, 18 of course, would include a no-smoking ban, whether it was 19 in the Labor Code, the Penal Code, the Vehicle Code, or 20 any of the other codes that fill up 15 feet on my library 21 shelf. 22 Lastly, the adult entertainment issue. This was 23 a place of adult entertainment. Of all the things, as I 24 indicated to you two weeks ago, this to me was the most, 2 5 in a sense, defamatory because it was the least true, the DIANNE JONES & ASSOCIATES 310.472.9882 Page 75 1 does not appear in any of the three documents ever. 2 Secondly, again, that the service of alcohol was to be 3 incidental to the food service. 4 That phrase appeared once in the resolution, in 5 the 1988 resolution which permitted the sate of alcohol. 6 It did not appear in the conditions and it did not appear 7 thereafter in either the entertainment permit granted in 8 1991 or the modification of that CUP, which also occurred 9 in 1991. 10 I want to bring something to your attention 11 because it's kind of interesting in light of Mr. Sanchez' 12 discussion. The heading on the resolution in 1991 which 13 so dramatically changed the business, as Mr. Sanchez 14 noted, Resolution No. 88-242(a) -- and I will read it. 15 In two places, it makes this point. So it's obviously 16 not an accident and it's not insignificant and it's not a 1 7 coincidence. 18 "A resolution of the planning commission," 19 et cetera "approving a modification to Conditional Use 20 Pennit No. 88-245 for the expansion of the restaurant and 21 bar." The restaurant and bar. Then it goes on to note 2 2 the expansion in square footage and so forth. 2 3 Then it goes on: "And to permit live 2 4 entertainment in conjunction with the restaurant and 2 5 bar." If one goes back to Resotution 88-242, which was DIANNE JONES & ASSOCIATES 310.472.9882 Page 74 1 I I 1 least fair, and the most damning to the business, to its 2 patrons, to its employees, and frankly, to the 3 neighborhood because it made it seem like these folks 4 were living in proximity to an adult entertainment 5 business, which they manifestly weren't. 6 I'll move along. So ultimately, ultimately what 7 was left to the planning commission was this notion that 8 somehow Margarita Beach was engaging in inappropriate 9 types of conduct predicated on a perceived violation of 1 0 its CUP and over and over and over again in the 11 resolutions, there was the reference to how there had 12 been a change from a primary restaurant use to one 13 featuring the primary restaurant use with incidental 14 entertainment and incidental alcohol use to where it 15 flipped around to where it became entertainment was the 16 primary use and alcohol was the primary use and food was 1 7 secondary. 18 Let's break it down. In none of the documents 19 asserted to be relevant -- the 1988 resolution, the two 20 1991 resolutions -- does the word "incidental 21 entertainment" appear. 22 The linchpin of the planning commission's 23 accusation is that somehow Mr. Davidson's business was 24 pennitted to have only incidental entertainment. The 25 only problem with that linchpin is that that requirement DIANNE JONES & ASSOCIATES 310.472.9882 Page 76 1 the 1988 resolution where alcohol was first pennitted at 2 the location, there is no reference to a bar or bar in 3 the chapter heading. These, meaning the 1991 documents, 4 are the documents pursuant to which business has been 5 conducted at that location since 1991. 6 Mr. Sanchez' point would require the following: 7 That critical elements governing important property 8 rights, important regulations, and important pennits 9 granted by a subsidiary agency of this city woutd not 10 appear on the face of the retevant or most recent 11 documents, but would be buried somewhere in a prior 12 document. It doesn't work that way. 13 The term "incidental," whether it refer to sale 14 of alcohol as an incidental to food or incidental with 15 respect to entertainment, does not appear in any 1991 16 document; and the term "incidental" appears only in the 17 resolution in the 1988 document, and it disappears and 18 drops out and is gone in the 1991 document. 19 As a matter of both common sense and pragmatism 20 and fairness and law, it would not make any sense. It 21 is not the law. The system does not work that way; that 22 a critical and dramatically limited term would appear not 2 3 in the current documents, but only in the past so that 24 someone would have to go hunting for it. It just doesn't 25 work that way. DIANNE JONES & ASSOCIATES 310.472.9882 d52b402a-ge83-4535-b780-5eab9a5da4ea Page 77 1 I would point one other thing out, and 2 Mr. Sanchez was starting to go -- well, I don't even want 3 to put words in his mouth. I would just note -- because 4 he mentioned it at some length -- the fact that 5 Margarita Beach now has a disc jockey. 6 In the 1991 Resolution No. 88-242(a) -- and I 7 quote from paragraph 2( e): "The application proposes to 8 conduct live entertainment consisting of small bands, 9 disc jockey, and comedian." 1 0 Members of the council, there may be some 11 marketing strategy differences. There may be differences 12 to some extent in the way business and tastes have 13 evolved, but under the governing and applicable 14 conditional use permit and entertainment permit, as long 15 as food is being served, there may be the sale of alcohol 16 and the provision of the designated types of 1 7 entertainment. 18 Margarita Beach has been properly operated 19 subject to its governing permits since the day it took 20 over. It became Margarita Beach after being 21 Margaritaville, when it was Margaritaville, and going 2 2 back to the days of Skipper's. Anything that was to be 23 applicabte would have been restated. 24 And again, the proof ofthat to some extent is 25 to look at the resolutions which are under appeal. Those DIANNE JONES & ASSOCIATES 310.472.9882 Page 79 1 attributable to Margarita Beach. And in all fairness, 2 members of the council, Margarita Beach has dealt with 3 those issues. 4 And so, as Mr. Reiss suggested, we are left with 5 an erroneous evaluation of relevant documentation, which, 6 in my respectful judgment, clearly suggests is clearly 7 erroneous; and two, continuing bad feelings about a B situation attributabte to I cannot tell you what. 9 So where are we? Historically, back to October, 10 we have proposed alternative approaches to dealing with 11 the situation. We have never said, "We resist any new 12 conditions." We've never said, "We do not join in the 13 notion of clarification." 14 I believe Councilman Michael mentioned the .15 notion of perhaps some greater control and clarity when 16 we spoke briefly at the hearing on the 18th in 17 open-hearing session. 1 B We've never opposed that. We have voluntarily 19 imposed a number of conditions -- a number of 20 ameliorative steps, many of which grew out of the 21 June 22nd recommendation of planning staff, the 22 professionals, as I suggested last time, hired by you, 23 relied on by you to evaluate situations and make 24 recommendations. 25 I won't take the time to restate them. They're DIANNE JONES & ASSOCIATES 310.472.9882 Page 78 1 , 1 items which the planning commission wanted to restate -- 2 wanted to be retained in the resolutions which we are 3 presently appealing to you tonight were restated in the 4 same way that documents always contain restatements of 5 conditions or law or restrictions or grants of power that 6 are intended to carry forward. 7 What the planning commission did was peculiarly 8 odd in the context as I suggested of no prior review, no 9 ABC history, management that had shown itself to be 10 responsive, caring, and proactive with no attempt to try 11 to do incremental steps. No discussion. With respect to 12 the facts, what the situation is, there's no point to 13 discussing whether something happened four years ago or a 14 year and a half ago. 15 As Mr. Reiss noted and as you heard, and perhaps 16 Mr. Sanchez himself said it best with respect to our 1 7 witnesses who pointed out what the facts are, that the 1 B problems simply do not appear to be occurring now. He 19 said, "That's fine." Mr. Sanchez: "That's fine that the 2 0 problem is gone." Mr. Libertore: "Well, it's working 21 pretty well now. They do stilt have some stray cars that 2 2 are turned away by their security." 2 3 That's the way it's supposed to work. The 2 4 problems were addressed by Mr. Davidson to whatever 2 5 extent they existed, to whatever extent they were DIANNE JONES & ASSOCIATES 310.472.9882 Page 80 1 there. We've talked about them, and you certainly may 2 look at them. 3 The suggestions that came from our meeting with 4 the neighbors last night all seem salutary and 5 beneficial. We're happy to propose those formally and in 6 advance tell you we accept them. 7 I should note that to the extent there are any B reasonable charges in connection with the signage on the 9 V-turn and no-left-turn, if that's something useful, I'm 10 authorized to state that Margarita Beach will fund those 11 costs so the City does not have to incur any additional 12 expenses. 13 Lastly, at the January 18th meeting, 14 Councilman Michael asked if there were any of the 15 proposed conditions in the two resolutions, 05-50 and 16 05-51, that we coutd accept and that we could deal with 17 and asked if we could take a look and submit them. 18 Just prior to my remarks, I submitted to the 19 clerk for distribution to you what I hope is what 20 Councilmember Michael had wanted and was in response to 21 his request. 22 What we did is to take all of the conditions -- 23 MR. MARKMAN: Everybody located their-- 24 MS. WILLIAMS: Where was it put? I've had 25 multiple papers in here. DIANNE JONES & ASSOCIATES 310.472.9882 d52b402a-ge834535-b780-5eab9a5da4ea Page 81 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Oh, wait. Here it is. I'm sorry. I have it. MR. WESTON: There are two. MR. MICHAEL: You've got both of them. MS. WILLIAMS: Oh, I'm supposed to read both of them? Thank you. MR. WESTON: You can just tell. If you look at -- MS. WILLIAMS: I'm sorry. I had too many -- MR. WESTON: --line 2, one says "05-50" and one says "05-51." MS. WILLIAMS: Got it. MR. WESTON: Just to refresh your recollection, 05-51 is the entertainment pennit. MS. WILLIAMS: To clarifY, these are taken directly -- these are verbatim taken out of the -- MR. WESTON: Yes. If! may, I want to be very clear what we did. I started off with electronic versions of all of the conditions which staffwas kind enough to send me and then we took those, and most ofthem we simply restated and accepted. MS. WILLIAMS: Verbatim? MR. WESTON: Verbatim. There were two or three ofthem which we struck, and those pertain to the early closure -- DIANNE JONES & ASSOCIATES 310.472.9882 Page 83 1 even some people in the audience that may have -- 2 MR. WESTON: Surely. If! may have a moment, 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 sir. MR. MICHAEL: Or even the overhead. Use the overhead. MR. WESTON: I'm not sure. MS. WILLIAMS: If you would take the original document from the planning commission and we could look -- do a comparative because I would like -- to have to read both documents is getting already -- MR. WESTON: Forgive me. I may have a red-lined version in my attache case -- MS. WILLIAMS: That would be perfect. MR. WESTON: -- but I'm not -- may I be excused for a second just to go to my attache case? MS. WILLIAMS: Certainly. We can read over this while you're doing that. MR. MICHAEL: Maybe even more simply, the two or three that you mentioned that you could not -- did not want or the ones you modified. MS. WILLIAMS: Mr. Weston, would it be possible if you just -- if we took the ptanning commission's document and went down it and maybe mark -- MR. MARKMAN: I don't know that the council at this point wants to go through a bunch of -- we don't DIANNE JONES & ASSOCIATES 310.472.9882 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 82 ] I' I , I i MS. WILLIAMS: Well,just tell me which ones or tell us which ones are -- MR. WESTON: They are not-- MR. MARKMAN: They're not on that list. MS. WILLIAMS: Thank you. MR. WESTON: Forgive me. We did not do this in red line at the moment. These are proposed conditions, the vast bulk of which are verbatim from what comes from the resolution. There are several that are stricken, but there are no more than two or three that are stricken and there are three or four of them that have slight modifications. We can live with these. We believe that they retain those aspects of the resolution which are justified, useful, constructive, and which do not put us out of business. MR. MICHAEL: I would just ask, Mr. Weston, if I may on these conditions for me to try to make some sense out of these two documents that we just received tonight, it would also be helpful if you coutd maybe go through those resolutions of 05-50 and 05-51 and show us the conditions that you struck through in these documents or modified. MR. WESTON: I can do it-- MR. MICHAEL: Because I think that would help DIANNE JONES & ASSOCIATES 310.472.9882 Page 84 1 even have a basic decision -- 2 MS. WILLIAMS: Well, this is -- 3 MR. MARKMAN: -- on whether you want to do 4 anything to the planning commission. 5 MS. WILLIAMS: Right; and I have to admit that 6 at some point, it starts to get too confusing to go word 7 for word. 8 If you could just tell us -- if you could tell 9 us, identifY the ones in the planning commission document 10 that you have issue with. 11 MR. WESTON: Certainly. 12 MS. WILLIAMS: If you could just identifY those, 13 you know, page whatever and whatever. 14 MR. SPAGNOLO: Mr. Markman, this may sound like 15 a dumb question, but we're here to either uphold the 16 decision of the planning commission and staff on 1 7 ordinances that they have put on this business. Now 18 we're given two new documents that staff hasn't looked at. 19 MR. MARKMAN: You are here to -- either you can 20 affirm the planning commission, you can completely 21 reverse them and not change any conditions, or you can 22 modifY their action and impose any conditions. 23 I think the Mayor Pro Tern is on the right 24 course. We have all this material. We need a basic 25 council decision. You're not going to get a resolution DIANNE JONES & ASSOCIATES 310.472.9882 d52b402a-ge83-4535-b780-5eab9a5da4ea Page 85 1 tonight. 2 And if the decision is to impose all of the 3 relevant conditions proposed, for example, other than the 4 two or three which Mr. Weston say are fatal to the 5 business, then we'll come back with a resolution that 6 does that. The staffcan go over all ofthis language, 7 and we'll have a resolution prepared if that's where you 8 go. 9 I'm not suggesting -- 10 MS. WILLIAMS: Or some derivative thereof. 11 MR. MARKMAN: -- advising you to go there, if 12 that's where you go. I think we could be here another 13 four hours trying to wrestle with the language of several 14 dozen conditions. 15 MS. WILLIAMS: Surely-- 16 MR. MARKMAN: You haven't made a decision. 17 MS. WILLIAMS: Surely you took a highlighter 18 when you got that document and said, "This has to go" and 19 sliced through it. Come on. 20 MR. MICHAEL: I guess my question maybe to make 21 it -- to simplifY it was: What are the conditions that 22 you indicated earlier that you could not live with? 23 You said there were two or three conditions that 24 you just could not -- that the business could not survive 2 5 if they were imposed. I've heard you say one was DIANNE JONES & ASSOCIATES ,310.472.9882 Page 87 1 for the whole paragraph. 2 MR. WESTON: I'm sorry. See, I was talking 3 about communication before and obviously -- 4 MS. WILLIAMS: It is, indeed, getting late. 5 By the way, it's only one paren -- 6 MR. WESTON: I beg your pardon. 7 MS. WILLIAMS: -- not two parentheses. It's 8 only one. 9 MR. COLEMAN: The one he's referring to in this 1 0 three-ring binder -- 11 MS. WILLIAMS: I found it. 12 MR. COLEMAN: -- is not the one that was adopted ,13 and signed by the planning commission as their record of 14 their action. 15 If you look in your agenda packet for 16 November 2nd, the city council staff report, 17 page 118-5 -- or actually starting on page 118-3 -- 18 MS. WILLIAMS: Got it. 19 MR COLEMAN: -- Exhibit A is the resolution 20 that was signed and adopted by the planning commission. 21 MS. WILLIAMS: So there were some alterations 22 made? 23 MR. MARKMAN: What are the conditions, Dan, that 24 deal with accounting for percentages of food and alcohol 25 sales and hours of operation? That's all that I've ever DIANNE JONES & ASSOCIATES 310.472.9882 Page 86 ) i j 1 something about hours or something? 2 MR. WESTON: Yes. If you look at -- and where 3 you could find it easily, if you would be kind enough to 4 go to Tab No. 1 in our materials, there are the two 5 resolutions quickly set forth for your review. If you 6 would turn to page 4 of the first resolution, No.2 in 7 parentheses, at the very top of that page. 8 MR. MICHAEL: Which resolution are we talking 9 about? 10 MS. WILLIAMS: There's nothing in parentheses. 11 Are you talking about OS-50? 12 MR. WESTON: Yes. 13 MR. COLEMAN: The one adopted by the planning 14 commission, not your revision? 15 MR. GUTIERREZ: The first resolution in Tab 4. 16 MR. WESTON: Let me be clear, if! way. 17 In our materials, Tab 1, we layout -- we 18 provide both resolutions, 05-50 and 05-51. 19 MS. WILLIAMS: Yes. Page 4 of mine does not 20 have anything -- well, down to No.5, it has a little bit 21 in parentheses, but it's not -- 22 MR. MICHAEL: No. 2-- 23 MR. WESTON: No.2 at the top ofthe page. 24 MR. MICHAEL: The numeral 2. 25 MS. WILLIAMS: Oh, the numerals. I'm looking DIANNE JONES & ASSOCIATES 310.472.9882 Page 88 1 heard talked about. You can identifY them. In fact, you 2 don't even have to. We can identifY if the council is 3 going to back off that planning commission decision. We 4 can figure out what those numbers are. It's not hard. 5 All we need is to conclude the hearing so we can 6 find out what the council thinks. 7 MR WESTON: What this is is -- what we are 8 seeking to eliminate, amongst other things, is the 9 paragraph which seeks specifically to restrict the 1 0 business to a primary use as a restaurant and bona fide 11 eating place with ancillary serving of alcohotic 12 beverages. 13 And in order to establish compliance with this, 14 the requirement that there be documentation to estabtish 15 that the sales -- that the proceeds from food 16 significantly exceeds the sale of proceeds from alcoholic 1 7 beverages. 18 MR COLEMAN: That was Planning Condition No.2. 19 MS. WILLIAMS: 2, paragraph 0; correct? 20 MR MARKMAN: 02. 21 MR WESTON: Yes. 22 MS. WILLIAMS: Item 2 in subsection D. No? 23 MR FOX: It starts at the bottom ofpage3. 24 MR MARKMAN: It doesn't matter. If you 25 identifY the subject matter and the council goes that DIANNE JONES & ASSOCIATES 310.472.9882 d52b402a-ge83-4535-b780-5eab9a5da4ea Page 89 1 way, we'll return with a resolution that does that. 2 MR. WESTON: Secondly-- 3 MS. WILLIAMS: (Unintelligible) which is 5 -- 4 MR. FOX: It's page 3 of 5. It starts with "The 5 primary use shall be a restaurant...." 6 MR. WESTON: Then the limitation on the serving 7 of alcohol to 11:00 P.M. 8 MS. WILLIAMS: That's the one you want removed? 9 MR. WESTON: The one that starts off, "The 1 0 primary use -- 11 MS. WILLIAMS: Okay. 12 MR. WESTON: And then the one that starts off, 13 "The serving of alcohol in conjunction with restaurant 14 usage-- 15 . MS. WILLIAMS: It's No.4. 16 MR. WESTON: -- "may occur only between the 17 hours of 11 :00 AM. to 11 :00 P.M." Then the restaurant 18 use may remain open until midnight. 19 We are seeking to retain the existing hours of 2 0 operation which require closure at 2:00 AM. for both 21 activities, as opposed to 11 :00 P.M. for the sate of 2 2 alcohol and midnight for restaurant use. 2 3 MS. WILLIAMS: Otherwise, the thing that you've 2 4 presented us tonight, everything else -- 25 MR. WESTON: Those are the primary significant DIANNE JONES & ASSOCIATES 310.472.9882 Page 91 1 permit -- 2 MR. MARKMAN: Right. 3 MR. WESTON: -- which we also have modified per 4 the request and we are seeking to retain a 2:00 AM. 5 termination time for entertainment as presently exists 6 now and has since 1991. 7 So in other words, we can just swnmarize them 8 because there's nothing secretive or not clear about 9 this. The basic things the planning commission did were 10 to tinker with the hours of operation dramatically and 11 also to impose this ratio, this required ratio of revenue 12 from food to dwarf the revenue from alcohol. 13 The hours of operation were changed to close -- 14 to terminate liquor sales at 11 :00, to close restaurant 15 sales at midnight, and to terminate entertainment at 16 midnight as well. 17 We are seeking fundamentally -- there is some 18 fine-tuning on some other things, but fundamentally to 19 retain the current hours and to retain the discretion of 20 the business with respect to any ratio of food sales to 21 liquor sales so long as full meals, full menu service is 22 available at all times. 23 I apologize for this uncharacteristic confusion 24 that I may have generated. I thought I was trying to do 25 it helpfully, and obviously it could have been done DIANNE JONES & ASSOCIATES 310.472.9882 Page 90 1 I , , , i , I 1 0Ill1SS10ns. We-- 2 MS. WILLIAMS: Are they taken from the document 3 of the November 2nd report that I have, or are they taken 4 from your document you prepared for us? I 5 MR. WESTON: Madam Mayor Pro Tern, I'm somewhat : 6 chagrined here because I thought what we had included was 7 the document, although it did not bear the signatures. 8 It was what I thought came from an electronic version of 9 it. 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MS. WILLIAMS: Then in a little bit when we conclude this part, maybe Mr. Coleman or a staff person can tell us the difference of the two. I mean, what differences -- MR. WESTON: If this will help, I'll get with Mr. Coleman and to the extent that things are not concluded this evening, we'll just substitute retevant pages. I think it's just a question of drafts perhaps, but I'll get with him and -- MR. MARKMAN: Mr. Weston, are you comfortable with the restriction on hours of entertaimnent that were imposed in 05-51? MR. WESTON: No. And that, of course, was the second -- MS. WILLIAMS: And where is that? MR. WESTON: That's in the entertainment DIANNE JONES & ASSOCIATES 310.472.9882 Page 92 1 better. 2 To the extent that we have the opportunity, I'll 3 get with Mr. Coleman, we1l work it out, and I'll get you 4 what you need for a more easy evaluation of the 5 situation. 6 MS. WILLIAMS: Thank you, Mr. Weston. 7 Does that conclude your remarks or not? 8 MR. WESTON: I conclude only by saying this, and 9 it's what I said two weeks ago: It is clear to me, as it 10 has come from the comments of the neighbors themselves 11 and from our own investigators and our own evaluation, 12 that whatever the tangibte issues may have been, whatever 13 their source, we believe that the remedial steps imposed 14 and carried out by the business have, if not totally 15 eliminated them, have reduced them to the vanishing 16 point. 17 We commit that those steps will be maintained, 18 will be observed. And to the extent that a problem may 19 develop or that they don't fully satisfy the issue, new 20 approaches will be taken in harmony with the neighbors, 21 in harmony with the planning commission as appropriate 22 because the conditions require monitoring, review, not 23 simply to resolve the matter and go away. 24 The client is committed to being a good neighbor 25 and a good corporate citizen and keeping its business DIANNE JONES & ASSOCIATES 310.472.9882 d52b402a-ge83-4535-b780-5eab9a5da4ea Page 93 1 going and keeping its commitments to this body. It is 2 not necessary for these changes. They are not justified 3 in fact They are not justified in law, and we 4 respectfully submit that the planning commission's 5 resolution and the conditions which we have challenged 6 should be respectfully but resoundingly rejected. 7 I thank you very much and would be pleased to 8 answer any further questions if the way I proposed it 9 will not make it impossible for me to effectively respond. 10 MS. WILLIAMS: Are you the concluding speaker 11 or-- 12 MR. MICHAEL: Could I -- I've got one question 13 for you and that is, there was a comment made earlier -- 14 actually, a rhetorical question by one of the speakers. 15 I forget who it was, but is Margarita Beach a restaurant 16 or is it a nightclub and as it was operating prior to all 1 7 these issues coming to the forefront 18 In your professional opinion, how was it 1 9 operating? 20 MR. WESTON: I really am not sure. I looked at 21 the definition of nightclub. It did not appear to fit 22 what a nightclub was. There's no live entertainment, 23 there aren't singing groups, there aren~ musical groups. 24 People don't sit down and watch like in the movies of the 25 '40s and the '50s in the heyday of nightclubs. So I DIANNE JONES & ASSOCIATES 310.472.9882 Page 95 1 MS. WILLIAMS: Identify yourself for the record, 2 please. 3 MR. DAVIDSON: Mark Davidson. 4 MS. WILLIAMS: Thank you. 5 MR. DAVIDSON: I'm the primary owner and 6 stockholder and president of Margarita Beach. 7 I think everything has pretty much been said on 8 both sides. I want to thank you for taking all the time 9 and actually listening to what we have to say. 10 Unfortunately, I did not believe that the planning 11 commission took the time that was necessary to hear our 12 side, and I want to thank each and every one of you for 13 taking the time and listening. I know it's tate at night 14 and I know we're all tired, and it's been a very long 15 process. 16 All I'm asking for specifically in the 17 conditions is that we be allowed to continue to remain in 18 business, to be open and operating, selling food, 19 liquor, and entertainment till 2:00 A.M. Above and 20 beyond that, I am extremely flexible and workable and 21 willing to do whatever it takes to compromise to make 22 this work and to make everybody happy. 23 I'd like to take any questions that you might 24 have. 25 MS. WILLIAMS: Any questions? I have -- go DIANNE JONES & ASSOCIATES 310.472.9882 Page 94 ; 1 don't feel comfortable saying definitively to you, "It's 2 a nightclub." 3 I don't know what a definition is of a 4 nightclub. It certainly serves and provides food 5 throughout, it certainly provides alcohol, there is 6 certainly entertainment in the form of a disc jockey, and 7 there is a small dance floor and people are there. To 8 me, that's not what a nightclub is, as I understand it. 9 I went to the Coconut Grove as a kid. That was a 10 nightclub. This is not a nightclub. 11 I believe under the CUP, under the entertainment 12 permit, this business functions as it is required to. It 13 is a restaurant which serves alcohol and provides 14 entertainment The ratios may be different, but that is 15 not relevant under the CUP and frankly, ought not to be. 16 There is no issue that cannot be appropriately addressed 17 by the conditions to which we have referred or other 1 8 appropriate remedial steps. 19 Mr. Davidson has a few remarks and then our 20 portion of the surrebuttal will conclude. 21 MS. WILLIAMS: Thank you. 22 23 24 25 PRESENTATION MR. DAVIDSON: I have a very short speech. DIANNE JONES & ASSOCIATES 310.472.9882 Page 96 1 ahead. m come after you. Go ahead. 2 MR. MICHAEL: The entertainment permit that you 3 currently have indicates 2:00 AM. -- that entertainment 4 concludes at 2:00 A.M. I know a number of areas where 5 entertainment concludes at I :30 and the bar closes at 6 2:00. 7 MR. DAVIDSON: That's correct. What we do is 8 at 1 :30, we give last call for alcohol. 9 MR. MICHAEL: Right 10 MR. DAVIDSON: At 1:37, the music shuts off and 11 we're very religious about our times. At that point in 12 time, we no longer -- well, we sell alcohol till 1:37. 13 Once the music shuts off at 1:37, the entertainment 14 ceases and the sates of alcohol cease as well as the sale 15 offood. 16 That allows us basically till -- we try to have 17 100 percent of everybody out of the premises by 1:55. 18 The law requires 2:00 AM. We try to get everybody out 19 by 1 :55, giving us a five-minute cushion in case 20 somebody -- there's a problem or somebody doesn't want to 21 leave promptly. It gives us a little bit of cushion 22 because he wants to push it right till 2:00 AM. So our 23 entertainment does cease literally at 1 :37 A.M. 24 MS. WILLIAMS: So you are not serving -- but 25 you're saying you want to have entertainment until DIANNE JONES & ASSOCIATES 310.472.9882 d52b402a-ge83-4535-b780-5eab9a5da4ea Page 97 1 2:00 A.M., yet you're telling me you shut it down at 2 1:377 3 MR. DAVIDSON: I think that's a practical 4 matter. The ABC has always said that you're open till 5 2:00 A.M. You can serve alcoholic beverages until 6 2:00 A.M., but the practicality of it -- even though 7 you're legally allowed to serve alcohol until 2:00 A.M., 8 if a person orders a drink at 1 :50 or 1 :55, they have to 9 be able to drink it and consume it. So hypothetically, I 10 guess you could order a drink at 1 :59, as tong as you 11 consumed it before 2:00 A.M. 12 MS. WILLIAMS: I see. 13 MR. DAVIDSON: But from a practical matter, ABC 14 liquor taw is you have to -- it has to be concluded by 15 2:00 A.M. Every bar in the world gives last call at 16 about 1 :30, picks up all the drinks about 1 :40, 1 :45, and 1 7 asks everybody to leave. 18 MS. WILLIAMS: I had a couple of questions. I 19 know some ofthis has sort of been alluded to, but I 20 actually would like to have it clarified. 21 In looking at -- this is getting very confusing 2 2 because some of this is statement of what was and some of 23 it is statement of what will be or what should be or what 24 . is expected. 25 So you plan to change -- you say you would DIANNE JONES & ASSOCIATES 310.472.9882 Page 99 1 way most work. 2 I made a mistake. I didn't realize -- and I 3 don't know how I missed it. I'm a smart man. I should 4 have got it. I don't know how I missed itin the CUP -- 5 that food was required to be served all the way until 6 closing time. That is a very unusual requirement. I've 7 never seen that in any other CUP. I don't know of any 8 other businesses in the city or anyplace else that have 9 that condition. 10 I missed it, and I made a mistake. So I served 11 food prior to that, it was 10:00 on weekdays and 11 :00 on 12 weekends. Now, when all the concerns about the marketing 13 of the food became an issue, I offered some other 14 suggestions. 15 Rather than closing us down and putting us out 16 of business, one of the suggestions that I said I would 17 be willing to do would be to spend $20,000 towards the 18 promotion and marketing of food, whether it was with 19 coupons or advertising. And specifically what I thought 2 0 I would do is if I'm going to keep the restaurant open 21 till 1 :30, maybe change the menu a little bit to put in a 22 pizza oven and additional refrigeration that would allow 23 the making of tate-night pizzas. 24 The reality is at 12:30 at night, people rarely 25 order heavy meals. We eat dinner 6:00, 7:00, 8:00 at DIANNE JONES & ASSOCIATES 310.472.9882 Page 98 1 I 1 change your kitchen hours or you have already changed 2 your kitchen hours? What are your kitchen hours? 3 MR. DAVIDSON: I'll give you both, exactly what 4 they are and the history of this. 5 We serve food until closing time. We have food 6 available. If you come in at 1 :30, you can order food. 7 MS. WILLIAMS: But at 1:37, do you close down 8 the kitchen as long as you're closing out everything 9 else? 10 MR. DAVIDSON: Yes. At 1:37, we close down the 11 kitchen. 12 MS. WILLIAMS: Now, referencing back to another 13 section that had the suggested alternatives that was 14 given to us at another time -- 15 MR. DAVIDSON: Correct. 16 MS. WILLIAMS: Wait a minute. Oh, it was in 1 7 Section B. 18 Are you proceeding with this expansion or 19 renovation -- whatever it is -- with the kitchen that you 20 mention here or have you? 21 MR. DAVIDSON: What I offered -- I offered to 22 spend -- you know, there was concern about whether or not 23 my marketing plan included food. And initially, every 24 restaurant in the world or restaurant/bar generally stops 25 serving food about 10:00 or 11 :00. That's typically the DIANNE JONES & ASSOCIATES 310.472.9882 Page 100 1 night. But if you wanted to order a steak, yes, you can. 2 We are a bona fide restaurant. If! wasn't a bona fide 3 restaurant, 1 would be in front of the ABC, I would be 4 cited, I would be closed. I have to be a restaurant. I 5 don't have a choice. They'd close me down if I'm not a 6 restaurant. 7 But your requirements that I serve food until 8 2:00 A.M., if I'm going to do it, my suggestion was "You 9 know what? Let me expand it and come up with a menu, a 1 0 late-night menu that would be more apropos to the guests 11 that they might order. I have a cook. I pay a cook 12 every night. My thought is, "If I'm going to pay a cook, 13 I'd rather serve some food." 14 I don't know if that answers your question. 15 That was an offer. I made several suggestions because 16 the planning commission ordered staff to work with me on 1 7 coming up with conditions. I sent staff those 18 suggestions and several e-mails, phone calls, and went 1 9 there in person. Staff refused to talk to me. They 20 didn't answer any of my e-mails, they didn't return my 21 phone calls. When I went there in person, they said 2 2 they were too busy to talk with me. 23 That suggestion, along with several other 24 suggesti'ons were suggestions that I sent to staff as to 25 possibilities of things that we could come up with. DIANNE JONES & ASSOCIATES 310.472.9882 d52b402a-ge83-4535-b780-5eab9a5da4ea Page 101 1 Instead oftalking to me and working with me, as they 2 were directed by the planning commission members, they 3 enacted the set of conditions that you have in front of 4 you, which is to basically put me out of business. 5 So that's the history of where those suggestions 6 came from 7 Staff disregarded my e-mails. They never 8 answered them. They disregarded my telephone calls. 9 They didn't return them. When I showed up there in 1 0 person, they said they were too busy to tatk to me. 11 MS. WILLIAMS: Another question: The 12 stipulation of no adult entertainment as defined by 13 Rancho Cucamonga Municipal Code Section 17.4.090, you 14 feel you're living within that and you're willing to 1 5 adhere to that? 16 MR. DAVIDSON: I believe we have always adhered 17 to it. I don't believe that we have ever been an adult 18 entertainment facility. I personally have very strong 19 anti feelings towards adult entertainment. Woutd never 2 0 engage in it, would never be in the business, and would 21 never allow it. That's my personal opinion. 22 Now, there might be other people that say some 23 of those pictures -- maybe at a Halloween party, that 24 that picture crossed the line of adutt entertainment. 25 You know what? I would argue that. But certainly, I DIANNE JONES & ASSOCIATES 310.472.9882 Page 103 1 nothing to do with ashtrays. I want you to remove the 2 ashtrays, and I don't want you to let anybody smoke 3 inside. II I said, "Done.". 4 So we go above and beyond the law. We don't let 5 them smoke. We don't have ashtrays. 6 MS. WILLIAMS: Okay. Anyone have any questions 7 at all of anyone who spoke? 8 Thank you, Mr. Davidson. 9 MR DAVIDSON: Thank you, and thank you for your 10 time. 11 MS. WILLIAMS: Anyone else care to address the 12 council at all in the room? Anyone here? 13 I want everyone to feel they have a chance to 14 speak. 15 16 17 18 19 20 21 22 23 24 25 PRESENTATION MS. SHANKS: I've been before you before. My name is Joan Shanks. I have been an employee of Margarita Beach for nine years. I just want you all to be very aware that I have a food-handler's license. We do have a Letter A for our -- we have the heatth deparbnent comes to our establishment at least three times a year, goes in our kitchen, comes behind the bar. We do sell food. DIANNE JONES & ASSOCIATES 310.472.9882 Page 102 ] 1 know what adult entertainment is. If anybody's been into 2 a strip club, been into an adult bookstore, seen an 3 X -rated movies, that's adult entertainment. 4 What I got going on at Margarita Beach, it is 5 not adult entertainment and would absolutely comply -- 6 again, the ABC liquor taw does not allow' adult 7 entertainment. So again, if! engaged in that type of 8 activity, there would be citations from the ABC over the 9 ten years that I've been there. There hasn't been. I 10 don'tdoit. 11 MS. WILLIAMS: My last question, then: 12 Regarding the smoking, do you have it posted now? Have 13 you corrected that problem enough that it's posted 14 visibly, adhering to the law? 15 MR. DAVIDSON: The law requires that we post 16 two signs saying there's no smoking and that we tell 17 people not to smoke. We absolutely do that. Not only do 1 8 we -- you know, the law does not require me to enforce 19 the no smoking, but I do that. 20 I was asked by the chief of police to go above 21 and beyond the law. Not just to post the signs, not just 22 to tell people not to smoke; and then if they chose to 23 smoke, to let them The chief of police personally said, 2 4 "Mark, I want you to go above and beyond it. I want you 2 5 to remove the ashtrays, even though the ordinance has DIANNE JONES & ASSOCIATES 310.472.9882 Page 104 1 I just wanted you guys to be very aware, and any 2 of you are more than welcome to come in anytime and have 3 some of our food. It's great. 4 Thank you. 5 MS. WILLIAMS: Would you sign in, please, just 6 to get the spelling of your name? Thank you. 7 Anyone else care to address the council? 8 I want to be absolutely certain that no one 9 wants to get up and address the council because this is 10 your time. We want to make sure. You've sat here this 11 long and endured this. If you want to speak, this is the 12 time to do it. 13 14 15 16 17 18 19 20 21 22 23 24 25 PRESENTATION MS. STEVENS: Hi. My name is Pat Stevens, and I wrote a letter to you. Okay? "Dear Mayor Alexander" -- he's not here tonight, but the letter that I wrote said: "Dear Mayor Alexander, I would like to explain the side of the residents of the Pines Mobile Home at 9999 Foothill Boulevard to you and the City Council regarding the" -- I can't get it out -- "comptaints associated with the Margarita Beach Ctub. "To this date, you have really onty heard that the noise made by the residents of the Estacia DIANNE JONES & ASSOCIATES 310.472.9882 d52b402a-ge83-4535-b780-5eab9a5da4ea Page 105 1 neighborhood. Once again, we have had a lot of trouble 2 with Margarita Beach for the past seven to eight years. 3 1 want-!o make this clear that we have tried everything 4 possible to get help from the police chief, the fire 5 department, the club owner. 6 "I was the first person to -- back then to walk 7 into the police station by myself, and I saw that there 8 was already a lot of complaints from residents from 9 Margarita Beach signed on the police log. This was 10 followed by three meetings between myself and other park 11 residents, the club owner, and the police chief, all of 12 which produced absolutely zero results. It was a big 13 joke. Then 1 started a petition, and this was seven, 14 eight years ago." 15 Let's see. "When I turned in to the city hall 16 over 40 signatures of residents requesting the city take 1 7 action to end this problem. However, I already knew that 18 we were in trouble when I went to get on 19 Foothill Boulevard one day. Across the street, there was 2 0 a life-sized plastic gorilla (unintelligible) and it 21 wasn't King Kong. Then a panel truck opened up with all 2 2 kinds of lights" -- I'm kind of nervous, you know. 23 MS. WILLIAMS: You're doing fine. 24 MS. STEVENS: Am I doing all right? You know 25 what? 1 came down here. 1 want you folks to hear what's DIANNE JONES & ASSOCIATES 310.472.9882 Page 107 1 MS. STEVENS: Beg your pardon? 2 MS. WILLIAMS: When you're doing that, you're 3 reading it into the public record. So that's fine. 4 - MS. STEVENS: Okay. Should I finish it? 5 MS. WILLIAMS: It's in the record as a piece of 6 information, yes. 7 MS. STEVENS: Thank you. 8 MS. WILLIAMS: Thank you for coming up. 9 MS. STEVENS: 1 screwed it up again. 10 MS. WILLIAMS: No. You did fine. You did fine. 11 Aoyone else care to speak? 12 This will close the public hearing council. Oh, 13 wait a minute. I think, actually, we were going to 14 have-- 15 MR. MARKMAN: I think the staff -- does the 16. staff have -- 17 MS. WILLIAMS: Staff have any comments? 18 MR COLEMAN: Mr. Diaz is going to address the 19 council. 20 21 PRESENTATION 22 23 MR. DIAZ: Good evening, Mayor Pro Tern Williams 24 and members of the commission and City Attorney Markman. 2 5 As been repeatedly noted tonight, this saga DIANNE JONES & ASSOCIATES 310.472.9882 Page 106 i I 1 going on. I live across the street from that doggone 2 bar, and it's 2:00 in the morning every morning that I 3 have to go to bed. There's another lady in front of me 4 that has to get up at 2:00 and go to work. We've got 5 elderly people there that are in wheelchairs and they're 6 sick. 7 I think I got a picture of it. You want to turn 8 this on? I'm so mad, I'm spitting. Here. Hey, 1 want 9 the truth out. What's bothering your people? I don't 1 0 care about Mark. Him and 1 been going around for years. 11 1 think it's upside down, but you see where you come in. 12 Then I kind of outlined where the people that were sick 13 and the senior citizens and everything. 14 Can you see? . 15 MS. WILLIAMS: Uh-huh. We have a monitor here. 16 MS. STEVENS: Did 1 send you up one today or 1 7 yesterday? 18 MS. WILLIAMS: Uh-huh. 19 MS. STEVENS: You got it, then? 20 MR. MICHAEL: We have your -- yes. 21 MS. WILLIAMS: We have it. 22 MS. STEVENS: Then I shouldn't have had to read 23 it. 24 25 MS. WILLIAMS: Well, it's your choice because that's reading it into the record. DIANNE JONES & ASSOCIATES 310.472.9882 , Page 108 1 began a year ago. 2 MS. WILLIAMS: Would you identify yourself as 3 well? 4 MR. DIAZ: That's right. I'm sorry. My name is 5 Michael Diaz. I'm the senior planner with the planning 6 department. 1 get to carry the box with all the 7 docwnents all -- 8 MR. MARKMAN: Get closer to the mic, Mike. 9 MS. WILLIAMS: Aod speak into the mic. 10 MR. MARKMAN: 1 can't hear anything. 11 MR. DIAZ: As I said earlier, this began a year 12 ago and we've had a lot of testimony both for and against 13 and a lot of discussion and debate regarding the 14 operation of Margarita Beach. As such, I'd like to take 15 a few minutes. If you'll indulge me, I'll try to clarify 16 what 1 think or what staff believes are the issues that 1 7 are important to you in your consideration. 18 MS. WILLIAMS:' I need you to speak into the mic, 19 though. 20 MR DIAZ: I'll try not to look anywhere, then. 21 MS. WILLIAMS: Right. 22 MR. DIAZ: What I'd like to do is to just kind 23 of go through a different couple subjects or different 24 subjects and talk about them so that you can maybe -- so 25 we can clarify some of the issues. DIANNE JONES & ASSOCIATES 310.472.9882 d52b402a-9083-4535-b780-5oab9a5da4oa Page 109 1 The appeal asserts that the nature of the 2 original was somehow altered by subsequent approvals and 3 modifications to the original CUP. The implication is 4 that the city sanctioned the use that we have today by 5 amendments to the originat approval. 6 Staff doesn't see the record in the same manner 7 and believes that the record clearly shows that the 8 restaurant use as a primary use for the subject site has 9 and was never rescinded. More specifically, the record 10 shows that there is no evidence to accept the assertion 11 that the basic use of the site has been altered to allow 12 a nightclub use, as we see it, as the appellant and his 13 advisors suggest. 14 A review of the three documents that apply to 15 the matter indicate the following -- you saw some of 16 those on your overhead earlier. 1 7 The first document is from December of 1988, and 18 that is in regard to CUP 88-45. At that time, the 19 planning connnission approved the sale of hard liquor for 20 on-site consumption in an existing restaurant. The 21 resolution, 88-242, is the one you'll need to refer to 2 2 for that. 2 3 At that point in time, the restaurant name was 24 "Siam Restaurant." The resolution then uses the phrase 2 5 "incidental sales of alcoholic beverages as menu items in DIANNE JONES & ASSOCIATES 310.472.9882 Page 111 1 the applicant and owners write: "The main part of this 2 business is to continue to be a sit-down restaurant, plus 3 alcohol establishment entertainment to be incidentat to 4 the total operation." I have a copy of the entertaimnent 5 application that was filled out that I can provide for 6 the commission or for the council and for the -- 7 MR. MARKMAN: Mike, is that in the planning 8 commission materials? 9 MR. DIAZ: It was included as part of one of 1 0 the originat -- II MR. MARKMAN: So it's already in the record? 12 MS. WILLIAMS: I think we've already seen it. 13 I've seen some. I don't know. 14 MR. DIAZ: In that application, as I just 15 indicated, it indicates that the term "incidental" is 16 used, and the idea that the original use when Skipper's 17 came in was to continue a sit-down restaurant. That's 18 the point I want to make. 19 Despite the assertions to the contrary, the 2 0 aforementioned documents do not authorize a shift in the 21 use of the site from a restaurant to a nightclub 22 business. Moreover, staff continues to believe that the 23 planning commission fully understood that they were 24 dealing with a restaurant use each time they acted on the 25 subsequent applications. DIANNE JONES & ASSOCIATES 310.472.9882 Page 11 0 1 conjunction with the sales of food." In Condition 5 of 2 that resolution, the phrase "serving alcoholic beverages 3 in conjunction with the restaurant use" is also used. 4 The type of alcohol pennit issued for the 5 premises that we're talking about is a Type 47 license, 6 which is issued for restaurant establishments and 7 requires the service of meals. Those are ABC rules. 8 In November of 1991, CUP 88-45 was modified. At 9 that time, the planning connnission approved the expansion 1 0 of the restaurant in tenns of square footage. It 11 extended the operating hours from 8:00 P.M. to 2:00 A.M. 12 in the morning, and it allowed for entertaimnent. In 13 that particular -- the title of that resolution, which is 14 242(a) or 88-242(a), the title reads, "in conjunction 15 with a restaurant and bar." 16 That same night in November, the planning 1 7 connnissiori also approved an entertaimnent pennit to allow 18 live entertaimnent and dancing for what now is being 19 called "Skipper's Bar & Grill." Finding C of that 20 resolution, Resolution 91-184, identifies Skipper's Bar & 21 Grill as a full-service restaurant serving alcoholic 22 beverages. The entertaimnent application submitted by 23 Fred and Urai Nelson in 1991 clearly indicates that a 24 restaurant use was the main part of the business. 25 In answering the Question F in the application, DIANNE JONES & ASSOCIATES 310.472.9882 , Page 112 ; 1 In fact, Connnissioner McNeil was on the planning 2 commission during that time the original CUP was approved 3 and then modified in 1991. As you know, 4 Connnissioner McNeil still serves on the planning 5 commission and had given no indication or statement that 6 there was any change in the use for the site than that 7 which was originally approved. 8 Since 1991, no further action by the planning 9 connnission has been done in regards to the CUPs or the 10 entertaimnent pennits for the particular use. 11 I'd like to now comment on the current operation 12 of the business. Staff has stated and continues to 13 believe that Margarita Beach is operating as a bar and 14 nightclub, rather than a sit-down restaurant that was 15 originally envisioned or approved. 16 Staff's view is based on the following factors: 1 7 One is that it's a form of advertising. You no doubt 18 have seen a number of the ads and things that have been 19 provided for you during the last few meetings, but in 20 public testimony for the planning connnission on March -- 21 excuse me. 22 Margarita Beach's form of advertising features 2 3 or had featured titillating images and text as reflected 24 in its printed flyers, its magazine ads, its radio 25 promotions on X103.9, and photos found on the Internet at DIANNE JONES & ASSOCIATES 310.472.9882 d52b402a-ge83-4535-b780-5eab9a5da4ea Page 113 1 Xl03.9.com and www.i.e.party.com. These are kinds of ads 2 and photos that are consistent with those that would be 3 normally associated with nightclub use. 4 Although the advertising has reportedly been 5 discontinued, according to Mr. Davidson, he has not 6 indicated he has concurrently changed the nature of the 7 operation of the business, which appears to continue to 8 be operated as a nightclub. 9 Wesley Hall, in his July 13th testimony before 10 the planning commission, indicated that -- and Mr. Hall 11 is a business partner and overseer of marketing and 12 promotions for the business. He was responding to 13 Commissioner Fletcher's questions regarding industry 14 standards for advertising of nightclubs and stated that 1 5 their advertising was consistent with the industry 1 6 standards for restaurants, bars, nightclubs, "yes, 17 absolutely." 18 THE REPORTER: Could you slow down just a little 19 bit? 2 0 MR. DIAZ: Sure. 21 THE REPORTER: Thank you. 22 MR. DIAZ: Age restrictions, as were 2 3 particularly noted the last time the city council heard 24 the item: Patrons are limited to persons over 21 years 25 of age. That's consistent, also, with the operation of DIANNE JONES & ASSOCIATES 310.472.9882 Page 115 1 may be a difference between labor codes, but that's the 2 way that we understood it. According to code enforcement 3 personnel at that time, Mr. Davidson refused to cooperate 4 and rectify the situation, which necessitated the 5 prosecution of the matter. 6 On March 9th of 2005, in testimony before the 7 planning commission, Mr. Davidson admitted that food 8 service was limited or routinely stopped at 10:00 or 9 11:00 P.M., depending on the time of the weekend, while 10 business remained open and serving alcohol. This was in 11 violation of Condition 1 of the planning commission's 12 resolution stated in 88-242(a), which is the resolution. 13 It also violates a similar condition or almost the same 14 wording from 88-242, which was prior to that. 15 In regards to that particular -- I wanted to 16 mention that in regards to that particular limitation 17 that the City had in that condition, it's really not 18 unusual. I come from Claremont, where for 16 years, we 19 wrote CUPs for restaurant uses and bars -- well, 20 actually, there aren't any bars in Claremont -- but each 21 one of those particular uses that we approved had those 22 specific words that basically allowed alcohol onty when 23 food was being full-service at all times. 24 So whenever food was served, you could have 25 alcohol. If you didn't have food service, you couldn't DIANNE JONES & ASSOCIATES 310.472.9882 Page 114 1 bar and a nightclub use. Mr. Davidson confmned the age 2 restrictions during the last public meeting. 3 The hours; that is the peak hours, have been 4 stated from 10:00 to 2:00 A.M., are also consistent with 5 the hours of a nightclub and are not typical of a 6 sit-down restaurant use. 7 In his testimony regarding downloaded website 8 pictures from www.i.e.party.com. Jose Samboline, who's 9 also the co-owner of the Margarita Beach Rancho Cucamonga 1 0 store -- at least as we understand it -- stated that what 11 is shown on the website focuses on the late-night 12 portions of the three separate businesses, specifically 13 to advertised events. That's from the July 13th, 2005 14 minutes. 15 In regard to the history of violations, here's 16 what we know: The appellant and counsel repeatedly 1 7 assert that there have been no conditions -- violations 18 of conditions or law, yet in response, staff notes that 19 the only -- the two items which we know of, each one of 20 them alone are sufficient cause to require review of the 21 conditional use permit. 22 The first one, in June of 2005, Mr. Davidson was 2 3 convicted and filled for allowing smoking inside a 24 business, contrary to Condition 6 of the planning 25 connnission's resolution, as we understood it. Now, there DIANNE JONES & ASSOCIATES 310.472.9882 Page 116 1 have alcohol. 2 In regard to the planning commission's actions, 3 it needs to be clearty emphasized that neither staff nor 4 the ptanning commission was trying to ctose 5 Margarita Beach. The action made by the planning 6 commission reflects their effort to consider the 7 infonnation that was presented to them at three lengthy 8 public meetings, which would be March 9th, June 22nd, and 9 July 13th, and then to address what they believed to be 10 the critical issues that were in need of attention. 11 The planning commission acted within the purview 12 and capacity of the body charged with the responsibility 13 to review and grant conditional approvals. The 14 conditions originally imposed and later modified by the 15 commission's most recent action were intended to ensure 16 that the use or business is compatible with adjoining 17 uses and properties. 18 Margarita Beach was and is not being singled 19 out. Rather, the staff and the planning commission were 20 responding to the direction given by the council after 21 you learned of the issues that were raised at your 22 meeting a year ago and asked us to investigate. 2 3 To this point, staff has not received a similar 24 number of complaints regarding a similar use elsewhere 2 5 within the city in the same quantity that we received DIANNE JONES & ASSOCIATES 310.472.9882 d52b402a-ge83-4535-b780-5eab9a5da4ea Page 117 1 from residents surrounding Margarita Beach. If and when 2. those complaints are received about other businesses, we 3 will investigate and determine what course of action is 4 necessary. 5 The revised hours of operation for the business 6 were intended to specifically address the complaints of 7 noise occurring after 10:00 P.M., when city quiet hours 8 come into effect. Testimony from adjacent residents 9 reported noise disturbances; for example, noises, voices, 1 0 music, and screeching and speeding vehicles in the 11 immediate vicinity of Margarita Beach during the early 12 morning hours, particularly around closing time, which is 13 2:00 A.M. 14 The contention that the revised hours of 15 operation would put Margarita Beach out of business was 16 never substantiated with evidence. Whether the 17 modifications will shut down the business remains to be, 18 at this point, only speculation. 19 In regard to reports from the appellant 20 regarding the current loss of business, staffwill note :? 1 to everyone here that because of the appeal, none of the 22 modified conditions of approval have been in effect and 23 are not the basis for the decline in business, if there 24 is one. 2 5 Perhaps the alleged decline in business is due DIANNE JONES & ASSOCIATES 310.472.9882 Page 119 1 We're also concerned about the potential for 2 setting a precedent that encourages other businesses to 3 request a similar stepped method of dealing with 4 violations of their approvals -- 5 THE REPORTER: Please read slower. 6 MR. DIAZ: Sorry. 7 -- rather than the current method -- 8 MS. WILLIAMS: Just a minute. Take a breather. 9 MR. DIAZ: Okay. 10 -- which puts the burden to compty where it 11 betongs, and that's on the business owner. Staffis not 12 aware of any other businesses or land uses that are 13 conditioned in this manner. On the other hand, the 14 conditions imposed by the planning commission, we 15 believe, were fully and carefully measured and are 16 reasonably easy to enforce. 17 Again, if after some period of time, perhaps 18 maybe six months down the line, Margarita Beach -- and 19 after Margarita Beach has been operating in full 20 conformance as a full-service restaurant with incidental 21 alcohot sates, Mr. Davidson may seek a modification to 22 extend his hours and have that considered. 23 Alternatively, Mr. Davidson has the opportunity 24 to apply for a new CUP in which he would request the 25 permission to operate a nightclub similar to what Twins DIANNE JONES & ASSOCIATES 310.472.9882 Page 118 I 1 to the fact that advertising for the busmess has been 2 revised or suspended, a step that Mr. Davidson 3 voluntarity agreed to do but was not required by the 4 City. Again, no documentation has been provided to 5 demonstrate a decline in business. 6 The owner of a business for which a conditional 7 use permit has been issued has the opportunity to request 8 a modification to a condition or to some operating 9 condition as if it was -- and if it was found by the 10 planning conurussion to be warranted, then it could grant 11 a modification. 12 In response to the proposed progressive ladder 13 of discipline, the staffhas a few comments. Staff finds 14 that the proposed progressive ladder of discipline 15 standards to be highly unusual in concept and are not 16 consistent with the typical way and manner in which 17 conditions of approval have been structured or applied to 18 discretionary land use actions taken by the city. 19 Staff believes that the proposed ladder of 20 . discipline standards are vague and will require an 21 extraordinary level of effort and staff time to interpret 22 and to enforce alleged violations. The extraordinary 23 effort to condition the business in this manner point to 24 the challenge of having a nightclub operation near 2 5 residential uses. DIANNE JONES & ASSOCIATES 310.472.9882 Page 120 1 has. Twins has a nightclub CUP that was approved in 2 1994, 1 believe. Assuming the nightclub is 3 conditionally -- you know, it could be a permitted use if 4 the planning conurussion found that it was appropriate. 5 I atso want to, in closing, just -- I hadn't 6 addressed the issues about e-mails not being responded' 7 to, and that's simply overstated by Mr. Davidson. We did 8 respond to some of his e-mails, but not all of them. And 9 in regard to the kitchen e-mail or the issue about 10 improving his kitchen, we believe that was generally 11 fine. The issue was not whether it was -- how modem his 12 kitchen was. The issue was really with its use during 13 the full time it was supposed to be. 14 If you have any questions about the matter, I'd 15 be glad to answer them. 16 MR. MICHAEL: I need some help with the 17 terminology as it was mentioned by the attorney for 18 Margarita Beach and the city's position on incidental 19 sales of alcohol and the fact that Margarita Beach has 20 testified.. at least I believe they testified .. that 21 they are operating today with food available until they 22 stop serving alcohol. 23 Then I guess I'm just curious what the 24 incidentat thing in the original CUP and then the 25 modifications and the absence of it in future CUP. I DIANNE JONES & ASSOCIATES 310.472.9882 d52b402a-ge83-4535-b780-5eab9a5da4ea Page 121 1 think it was 88-242(a), I believe. 2 Can you respond to clarify that for me? 3 MR. DIAZ: Well, basically staff -- to go back 4 to the original CUP, the request was to allow the service 5 of alcohol in conjunction with a restaurant. So there 6 was already a restaurant in business, and they requested 7 a permit to allow them to serve alcohol. 8 That would be -- I think the staff -- the 9 resolution says "incidental to sales of alcoholic 10 beverages as menu items in conjunction with a restaurant 11 use." So clearly, it indicates it's not -- it's a part 12 of, but not the primary use. 13 MR. MICHAEL: Okay. 14 MR. DIAZ: Why it disappeared in terms of that, 15 I don't know. I can't answer that question. 16 MR. MARKMAN: I have a suggestion for the 17 council. I've heard so many wonderful arguments about 18 what one or two or three words in these four resolutions 19 means. It's just great. The problem, the issue here -- 20 Mr. Diaz hit it on the nose so I'll lay it to the 21 council. 22 I'm not going to tell you how to vote. The 23 issue is compatibility of uses. That is the only reason 24 why uses are conditionally permitted instead of 25 principally permitted or denied. That is that there is a DIANNE JONES & ASSOCIATES 310.472.9882 Page 123 1 you know, there are liberty issues here. There are also 2 nuisance issues and compatibility issues here. The 3 question before the council and what was before the 4 commission is: What does it take to make these two 5 described uses, residential and this use -- and I'm not 6 even going to characterize it -- compatible? I think 7 that's the issue. I think a court woutd look at that 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 issue. Secondary effects that are nasty or detrimental to other uses and neighbors do not have to be allowed. Nobody has a vested right to create a nuisance or maintain a nuisance or disturb other people from the quiet enjoyment of their residences or other uses. So the question is -- and I think that's what was before the planning commission. I don't think the planning commission -- if they're saying they made a mistake because in their judgment, they allowed a full-service restaurant to operate with liquor sales and entertainment till 2:00 A.M. -- which I find extremely rare. I don't think I've.ever seen that before -- they made that decision. So the use they allowed is the use they allowed. Forget about how it's characterized. How are you going to make -- how is the council going to make it compatible so these neighbors don't have to put up with this? I really think that's the core DIANNE JONES & ASSOCIATES 310.472.9882 Page 122 1 I I I 1 governmental process that has gone through to make uses 2 compatible with each other. 3 Aod when you know people are selling alcohol 4 and/or having entertainment in a restaurant and requires 5 a conditional use permit now, people say, "Well, this is 6 now a nightclub." I'll submit to you the issue is 7 compatibility, and the council ought to concentrate on 8 these two uses. Have they been made compatible? Can 9 they be made compatible? Aod if so, by the application 10 of which conditions? 11 The fact is in 1991, regardless of what the 12 language was, a Thai restaurant that served wine with 13 dinner was converted with the permission of Mr. McNeil 14 and the rest ofthe planning commissioners to a ptace 15 much larger, with live entertainment, and alcohol sales 16 that were allowed to occur to 2:00 A.M. That's a fact. 17 Now, you could have said right at that point, 18 "They must have thought it was a full-scale restaurant 19 because they allowed the sale of alcohol till 2:00 A.M." 2 0 Most restaurants close at 1 0:00 or 11 :00, as Mr. Diaz 21 said. There's all kinds of little indicia here that this 22 isn't really a restaurant, but the fact is every one of 23 those circumstances were put in play by the planning 2 4 commission intentionally in 1991. 25 So the question is, to me, before the council -- DIANNE JONES & ASSOCIATES 310.472.9882 Page 124 1 issue before you. Aod whatever decision the council 2 makes, we think we could defend it either way. I think 3 both sides have substantial positions and arguments, but 4 I think it all boils down to making the use that 5 was allowed in '91, specifically -- you know, the factual 6 use; not whether it's a restaurant or a nightclub or 7 anything else -- can it be made compatible with the 8 neighborhood? 9 That, I think, is the council's charge. 10 MS. WILLIAMS: Okay. So now it is up to us. 11 Council, what's your pleasure? 12 Mr. Spagnolo, do you have comments? 13 MR. SPAGNOLO: I think Mr. Markman pretty much 14 put everything in a nutshell there, because I kind of 15 have been struggling with this whole thing myself. 16 We've had a whole year of people coming up here 17 accusing each other of not telling the truth. We've had 18 people come up here and say, "If this was a court of law, 19 they woutdn't be allowed to say what they said." Then in 2 0 the same sentence, they say something too that wouldn't 21 be allowed in a court oflaw. 22 A lot of people have made a lot of statements 23 that aren't true, but this isn't a court of taw. This is 24 just a hearing. Nobody has been put under oath to swear 25 to tell the truth, nothing but the truth, but the whole DIANNE JONES & ASSOCIATES 310.472.9882 d52b402a..ge834535-b780-5eab9a5da4ea Page 125 1 truth. So we have to sit up here and look at both sides 2 of the picture and figure out what is truth and what 3 isn't. 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A lot of the things that we see, like you said, they're hard to prove that it came from Margarita Beach. But at the same time, Margarita Beach claims they do nothing. It's the liquor store. It's Gilberto's. It's Ken's Sushi Bar. It's the 9999 Foothill Boutevard seniors that are causing all the problems. You get in the back of their restaurant or their business, and you could hear crickets. So where is the truth? I think that the planning commission wanted to bring this back into full circle, and I believe that Mr. Markman put it in perspective right there: What is compatible with the community? The way this business has been operating hasn't been compatible with the community. I'm not here to put anybody out of business. Margarita Beach can probably survive somewhere besides where it is, but it's not a restaurant. I don~ know of a restaurant that only allows people over 21 to come in and eat. I don~ know of a restaurant like that. I know of bars and nightclubs where you have to be 21 to get in there. We've had people come up here and in some ways, DIANNE JONES & ASSOCIATES 310.472.9882 Page 127 1 entertainment to supplement it, not alcohol and 2 entertainment to supplement a restaurant. 3 MS. WILLIAMS: Mr. Gutierrez? 4 MR. GUTIERREZ: It's interesting how we can 5 look at all the same issues and facts and evidence and 6 come up with very different conclusions. That's the way 7 it is. 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 The fact of the matter is is that we have in this instance been asked to be the triers of fact. We've had to look for evidence. We've had to look to see whether the assertions were supported by the facts. That's what we should be doing, and I have tried very hard to do that. Now, I think Mr. Markman, our city attorney, did make it clear to me that we allowed in 1991 a use for this business. They were pennitted to serve alcohol until 2:00 A.M. So the question becomes: Is this compatible? Can it be compatible? With conditions, I think it coutd be compatibte. We have to remember something. This neighborhood and this business happened to be approximately 100 feet or maybe more from Foothill Boulevard -- Foothill Boulevard, Route 66, State Highway. People used to come from Chicago to the coast. DIANNE JONES & ASSOCIATES 310.472.9882 Page 126 , 1 I look at it as somewhat of a threat when you tell me 2 that ''I'm a registered voter and I've got 800 signatures 3 here of registered voters." Was it true? No. Halfof 4 those got certified as registered voters, but it didn't 5 mean anything to me. 6 My vote and my decision isn~ based on whether 7 you're a voter in this community or not. My vote and my 8 decision is based on what's the best thing for this 9 community, and what precedent are we going to set by 1 0 allowing something like this to continue in this 11 neighborhood. 12 Put the blame on other people that are in 13 business and do the finger-pointing somewhere else, and 14 then at the same time, want to put all these restrictions 15 upon themselves to operate. 16 Where would you allow somebody to operate a 17 business and have all these restrictions put on you to 18 protect the neighborhood from the business you want to 19 put in, even to the point where we've tatked about 20 putting up gates across people's streets so nobody would 21 go in there? What business would you want to do that? 22 I'm ready to make a decision, and I'm ready to 23 uphold the planning commission's recommendations on 24 bringing Margarita Beach back into compliance with what 25 it was supposed to be: A restaurant with alcohol and DIANNE JONES & ASSOCIATES 310.472.9882 Page 128 1 This is a busy street. I was there myself on a 2 few occasions late at night listening. Now, maybe he did 3 clean up his act because when I was there, the noise was 4 very limited. There was more noise coming out of 5 Satsuma Sushi Bar. The noise was louder from their 6 establishment than it was from Margarita Beach. 7 I did here some peeling out of motorcycles out 8 of the parking lot, but I also heard peeting out or loud 9 truck traffic and car traffic on Foothill Boulevard. 10 That's very noisy. I believe if my back yard or back 11 window faced Foothill Boulevard, that I would hear the 12 traffic from there. So these people live in an area 13 that's very difficult to timit noise. 14 I was younger once. Me and my wife lived in 15 Scenic Patms in West Los Angeles when I was a student for , 16 a while at UCLA, and we lived right by Chippendales. 17 That was a noisy place. We made it our dream to be able 18 to get our degrees and move to a place that could be more 19 quiet. 20 Now, these people have decided that they will 21 make this their home, and that's their right. That's 22 their right that I don't want to question, but it's just 2 3 very hard to say that because this club can be gone, that 24 somehow everything will be quiet. This is a very 25 difficult area to be quiet. DIANNE JONES & ASSOCIATES 310.472.9882 I II d52b402a-ge83-4535-b780-Seab9a5da4ea Page 129 1 The power of government to put people out of 2 business, I think that's -- personally, I think it's very 3 scary.. The power of government to regulate people, 4 families out of their livelihood. We heard a lot of 5 complaints about the right of government to condemn land, 6 property recently in the Supreme Court. Government, 7 therefore, has the capacity to do that. I think that's a 8 very serious issue. 9 When I'm faced with that opportunity to throw 10 this person out of this particular livelihood, then I 11 take it very, very seriously. I do weigh the evidence. 12 I do like to see if it can be substantiated that such and 13 such litter was caused by someone at that particular 14 establishment or that that bottle came from that 15 establishment or that that noise came directly from that 16 establishment. 17 When I went to the vicinity, I did walk around. 18 I saw the security guards. In fact, they seemed a bit 19 intimidating to me. They were quite large. They eyed 20 me. I suppose if it was my neighborhood, I would 21 appreciate, to tell you the truth, that someone is in the 22 entrance of my block and seeing who's coming in and 23 questioning whether they should be there now. 24 There's other issues about that, whether that's 25 appropriate or not. But I felt that in the last several DIANNE JONES & ASSOCIATES 310.472.9882 Page 131 1 and it doesn't feel good. It's okay if you don't agree. 1 2 It's okay if you don't want to vote for someone or 2 3 dislike him. 3 4 That's your right, but I will not stop trying to 4 5 represent the individual so long as he's not tramping 5 6 over someone else's rights. I believe he needs an 6 7 opportunity to prove himself. 7 8 The evolution of pennits, that's a whole other 8 9 issue. I believe there was a reason why Skipper's was 9 10 granted the uses that they were. I believe that they can 10 11 be compatible with what Margarita Beach is doing. 11 12 Bottles? They're not taken out of 12 13 Margarita Beach. They don't give the bottles out. So 13 14 where are they from? I was attacked by neighbors who 14 15 came in defense of the liquor store because I said it's 15 16 possibly the liquor store, which is halfway -- it's quite 16 17 closer to the neighbors than Margarita Beach. 17 18 I questioned that, and I was attacked. I don't 18 19 know why. I know the owner must be a nice man and you're 19 20 friends or something, but I have the right to look at 20 21 other alternatives. 21 22 I know, for example, that the apartments behind 22 23 the center where Margarita Beach is located, those 23 24 apartments create a lot of traffic congestion. There's a 24 25 lot of -- well, I won't say "traffic." I will say 2 5 DIANNE JONES & ASSOCIATES 310.472.9882 Page 130 1 1 months, Margarita Beach had done everything that was 2 asked of them previously. Then new things came up. The 3 morals were questioned and then the use definitions. Is 4 it a bar? Is it a restaurant? Is it a sit-down? Is it 5 an incidental? All these things started coming up, which 6 are valid. 7 We all want to be champions for the people. 8 Okay? That's what our ideal is, to represent the people 9 and their interests. However, to me, it only goes as far 1 0 as when you begin to tramp on someone else's rights. 11 When you begin to deprive or exercise the power to 12 deprive someone of his God-given rights as well, then it 13 does become our issue that we have to decide. 14 I will -- contrary to what Ms. Scimone said, I 1 5 will continue to try -- I'm not perfect, but I will try 16 to be your representative. But when I see that someone 17 is given questionable due process, is possibly not heard 18 or not given the opportunity to correct the deficiencies, 19 then I take issue with that; and I believe that 20 Mr. Davidson has rights too. I believe that some people 21 in the neighborhood haven't given him an opportunity to 2 2 prove himself, and I think that's wrong. 23 I've been a pariah myself. I've been attacked 24 and villainized. In fact, Mr. Davidson himself called me 25 a pariah many years ago. So I know what it feels like, DIANNE JONES & ASSOCIATES 310.472.9882 Page 13 2 "parking congestion." When I visited Margarita Beach, there were adequate spaces in the parking lot, but there were still people trying to park in the neighborhood or on Ramona. That's because, I believe -- like the apartments that I lived in -- there's always a demand for parking. You need to investigate whether that's an issue also, the parking. Yes, I think we all would love it if Margarita Beach coutd relocate to an area that isn't near living residents or apartments. That's not for tonight, though. Okay. They have been on a short leash. I don't understand why more neighbors haven't said, "Gosh, we appreciate your efforts. " You can sincerely say, "But we think it's not the ultimate sotution." That's okay. But I'm surprised that his leash has gotten shorter and shorter and shorter. If I put my dog on a leash like that and then continued to beat it or punish it after it had made a lot of improvements in the way it behaved, then that would be wrong. Aod I think what we're doing to Mr. Davidson is Wrong. I think he needs a chance to show that he can be compatible with that neighborhood. So that's all that I have, and that's why if it was to me, I would approve most of the conditions of the DIANNE JONES & ASSOCIATES 310.472.9882 d52b402a-geS3-4535-b7S0-Seab9a5da4ea Page 133 1 planning conunission. I would have to reject the -- or 2 approve the appeal and then with two or three items 3 deleted from the modifications of the planning 4 conunission. That's just how I feel at this point. 5 MS. WILLIAMS: Mr. Michael? 6 MR. MICHAEL: I'm going to come from maybe a 7 little bit different perspective, to start out with 8 anyway. 9 One, just to go back to our planning conunission 10 and their decision that they base their information on, I 11 have great respect for each one of the conunissioners in 12 their decision-making process; and they certainly have 13 had a difficult time dealing with this issue, as all of 14 us have had. 15 We want to make sure -- at least I want to make 16 sure that there's a compatibility between the business 17 community in our city and its resident that live in this 18 city and support the businesses that are in our city. 19 The planning conunission, when they dealt with 20 this issue, in reading all of their information, did not 21 have the same privilege, so to speak, of hearing a 22 full-blown hearing that was presented by the 2 3 Margarita Beach side. 24 I do remember and recall seeing the conunission's 2 5 reports and so forth and the advertising, which was, DIANNE JONES & ASSOCIATES 310.472.9882 Page 13 5 1 1980s. On the west side of Haven, what we are finding is . 2 difficulty keeping people in business on that side of 3 Haven. I certainty am not one to just jump right into 4 the fry here and put a business out of business day one. 5 I looked at past -- I have maybe a littte bit 6 different perspective because I was a staff member when I 7 watched a neighborhood bar and grill at 19th and 8 Camelian go through a very, very lengthy process where 9 residents were complaining about their late-night noise 1 0 and operation. I recall this very council dealing with 11 that issue. The fire department had problems. The 12 police deparbnent had problems with the facility. 13 The council at the time took a very measured 14 approach and a progressive process in dealing with that 15 particular business owner. Ultimately, the business 16 moved or changed its operation. Why it changed it, I 17 don't know. I wasn't familiar with that. 18 There was a business just down here that's 19 still, I think now, a buffet called "Harry C's" that 2 0 moved into town. It was a nightclub and it was a 21 restaurant. It wasn't around any residences, but it 2 2 caused more police activity and more fire deparbnent 23 problems than any other facility than I can recall in my 24 history with the city. 25 Mark Davidson's Margarita Beach has caused this DIANNE JONES & ASSOCIATES 310.472.9882 Page 134 I 1 personally, very disappointing to me; that I don't think 2 any business in this city should have been advertising in 3 that manner. 4 Be that as it way, I know that now the decision 5 rests with us, and I think Mr. Markman pointed out 6 something very valid and probably very succinctly. That 7 was: What we're doing here is dealing with issues of 8 compatibility, and that raised a point. 9 Mr. Diaz commented that the Twins Nightclub was 1 0 issued a CUP for a nightclub just down the road and 11 adjacent to a residential neighborhood. Apparently 12 during that period of time when the conunission dealt with 13 that, there had to be a degree of findings or some 14 feelings that that particular facility and that 15 particular operation was somewhat compatible to that 16 area. 17 Now I want to go back to 1980s when Siam Garden 18 came into this community and started this original CUP in 19 1988. It was CUP 88-42, I believe, or 45 or whatever the 20 number was. That was in the 1980s, and I think we all 21 can look at our community and the way it's developed. 22 What we're finding on everything east of Haven Avenue, 23 it's bustling. Businesses are thriving. Businesses are 24 having two-hour waits to get into their restaurants. 25 Our city has changed drastically since the DIANNE JONES & ASSOCIATES 310.472.9882 P~ge 136 I 1 neighborhood a great deal of problems, although when I'm 2 here dealing with the facts; I can't attribute all of the 3 issues to specifically Margarita Beach; and yet, I'm not 4 denying that that may not be the case. But from a 5 factual standpoint, I have a real challenge saying, "Yes, 6 that was Margarita Beach. Their patrons did those skid , 7 marks or the urination or whatever that occurred." 8 So I'm trying to come up with a way that we can 9 take Margarita Beach -- and I think Mr. Davidson has 1 0 already made comment that he erred in the fact that he 11 thought he could stop serving food at 10:00 and continue 12 on. 13 I don't want to take a situation -- because from 14 what I gather, if we go back to the 1988 CUP, based on 15 all the information that we, this council, have heard 16 during public testimony from both sides, we 17 essentially -- I guess you could almost call it a 18 revocation of the CUP because a restaurant on the west 19 side of Haven serving alcohol till 10:00 at night and 20 closing at 11 :00 as a restaurant is probably not going to 21 survive. 22 But it doesn't mean that if it's a restaurant 23 opened till 2:00 like the 1991 conditions that gave, I 24 believe it was, Skipper's Bar & Grill, they must have 25 believed that at that time there was a compatible use DIANNE JONES & ASSOCIATES 310.472.9882 d52b402a-ge83-4535-b780-5eab9a5da4ea Page 13 7 1 with a restaurant that was serving food in conjunction 2 with, incidental with -- I don't care about the 3 terminology -- alcohol till 2:00 A.M. was compatible with 4 the neighborhood. And unfortunately, Margarita Beach has 5 been here for about 11 years. 6 If! had my druthers, I wish we could have found 7 out these things a long time ago so it didn't get to the . 8 point where it got. But I have to say that this council, 9 even though this process has gone on for a long time -- 1 0 and I emphasize with all of you regarding that -- we, as 11 a council, for the first time are ready to deal with this 12 issue tonight after the ptanning commission hearings and 13 all the times that we started and you're coming to us in 14 January, February of '05 saying "We have this problem," 1 5 and we've referred it. 1 6 It seemed like it was a tot longer process than 1 7 what it should take to get to an answer that everybody 18 can live with. But I've seen issues, and I can only 1 9 point to issues of overcrowding and other issues where 20 the planning department and the fire department went out 21 collectively together to visit Margarita Beach to 22 ascertain the complaints and the concerns. I don't think 2 3 they found that much wrong, but they did find some 24 issues. 25 The violations -- the smoking that was brought DIANNE JONES & ASSOCIATES 310.472.9882 Page 13 9 1 money, time, and effort to try to keep -- to try to 2 salvage his business. It says to me that he's willing 3 and ready to work with everybody. Maybe that's just not 4 possible, but I certainly would like to give him an 5 opportunity to keep him in business. 6 1 respect what the planning commission has deatt 7 with. The planning commission dealt with some issues 8 that were pretty shocking and created probably a decision 9 to go back and review. Let's take it back to the 1988 1 0 CUP, the original CUP for an Oriental restaurant that 11 today, I'm just ready to say -- you know, the 1991 12 conditions and the CUP that was approved in 1991 to allow 13 them to stay open. 14 Let him clean up his act, give him an 15 opportunity to do the things that we say he needs to do, 16 and we'll make sure that that area is compatible with the 17 neighborhood. If it's not, then we'll have to take 18 further actions. But I would prefer to do it in a 19 measured approach that gives peopte an opportunity to 20 correct the errors of the past. 21 MS. WILLIAMS: Thank you. For the most part, I 22 will agree with Mr. Michael. I think that the planning 23 commission dealt with the worst of all the issues by 24 having to first address the -- especially with 25 advertising and those kinds of things which were DIANNE JONES & ASSOCIATES 310.472.9882 Page 138 ] 1 up, the food service at 10:00 -- I think we've solved 2 those issues, at least what they've indicated. They made 3 some mistakes. For there, they need to have some further 4 conditions put on them. 5 I'm all for the conditions that we have. I'm 6 all for looking at what the neighborhood might be able to 7 come up with for additional conditions and working 8 together with the business in the community, but I'mjust 9 not prepared to take those kinds of efforts the first 10 time I take action on any business in this town. I don't 11 care which business it is. 12 I think businesses have an opportunity to work 13 with their neighborhood. A neighborhood has the 14 opportunity to work with businesses. If it doesn't work, 15 it doesn~ work. I'd be the first one to say, "It 16 doesn't work, Mr. Davidson, at Margarita Beach. You've 1 7 been given opportunities." 18 There's discussions in the conditions about a 19 three-month review and then another three-month review 20 and then an annual review. I've talked with our police 21 chief about police reports, and I know there were 22 problems a year ago and prior to that even. 23 But since Mr. Davidson has had those issues to 24 address, I don~ know of a business owner in this town 2 5 that would spend or has spent or will spend the kind of DIANNE JONES & ASSOCIATES 310.472.9882 Page 140 1 extremely offensive and distasteful and inappropriate for 2 Rancho Cucamonga. 3 We've been assured those are not going to happen 4 again, and I think that Mr. Davidson and his business can 5 be well-assured that that will be monitored. I don't 6 think there will be any doubt that people will be 7 monitoring them very closely, as they should be. So at 8 this point, I would say he's on notice. 9 I also can agree with most of what the planning 10 commission set forth as far as conditions. I woutd even 11 ask that we look a little farther in -- I don't know if 12 we can add into the conditions. 13 I really think the idea of the very visible 14 signage on the streets to really redirect traffic -- I'm 15 guessing that our traffic engineer would just go crazy to 16 think that there was somebody standing in the middle of 17 the street with a sign in the middle of the night. I 18 just don't think that probably would work. It sounds 19 like a great idea, but it probably wouldn't work. But I 2 0 do' think that's something that should be incorporated in. 21 Perhaps we can do some very clear signage right 22 at eye level. I mean, really make it clear to keep 23 people out of those streets. I think that's part of the 24 probtem with the traffic. I think people may get in 25 there and realize and they become annoyed and "dam" and DIANNE JONES & ASSOCIATES 310.472.9882 d52b402a-ge83-4535-b780-5eab9a5da4ea Page 141 1 squeal out. 2 I don't know if that's what .. and we don't 3 know, again, all of these issues attributed to one 4 business. They may be -. some of these attributed to 5 that business, but I would still have to say that there's 6 about four other businesses there, each one of which can 7 contribute a little bit. 8 So to that, the cumulative effect on this 9 neighborhood had been horrific. I can't blame them at 10 all for feeling the way they do, but I don't think it's 11 all one business. 12 I actually think that along with this, it's 13 brought our awareness up a little bit. I think that 14 maybe our code enforcement can do a little more to go out 15 to these other businesses and just start looking around 16 for code enforcements, and as well as our police force 17 can start paying a little more attention to whatever 18 infractions may be coming out ofthe other businesses and 19 basically clean up the whole area as far as noise and the 20 traffic issues and the public incidents of pedestrians 21 and people wandering around footloose and fancy-free in 22 the middle ofthe night. 2 3 That is inappropriate in a neighborhood, and 24 nobody wants to live with that. But I do feel it's 25 appropriate to give this business a chance with the DIANNE JONES & ASSOCIATES 310.472.9882 Page 143 1 But the other about the hours, I'm willing to 2 let them -- I think -- what was it? The two issues: The 3 hours and .- help me. What was the other one? 4 MR. MARKMAN: The hours and the percentage of 5 food sales. 6 MS. WILLIAMS: Percentage offood, yeah. I 7 think that as tong as there's food available and it's not 8 a bag of chips; that it's actually -- I like the idea of 9 the pizzas, chiti fries, that kind of thing; things that 10 people like to snack on while they're having a drink. 11 But as far as the percentage, whatever is required by the 12 ABC should be adequate unless, again, if there's more 13 probtems. But I can assure Mr. Davidson and his whole 14 team, the monitoring will be very heavy. 15 You say that you'll adhere to these things. 16 You've made an excellent start. Even some residents that 17 I talked to said that it hasn't been anywhere near what 18 it used to be. But I think that also the awareness of 19 what's happening with this has maybe even made a couple 20 of the other businesses be a little more attentive to 21 their noise issues. If that's the case, that's a very 22 good result of all this. 23 Like I said, those people don't deserve to have 24 to live with that kind of noise, and that's not the kind 25 of neighborhood anyone wants to live in. DIANNE JONES & ASSOCIATES 310.472.9882 Page 142 1 I I I I 1 three-month monitoring. Like I say, I would like to 2 incorporate the street signage into that. 3 I think that the food issue is a major issue, 4 and whatever it takes to be providing decent food right 5 up to whatever time it is -- if it's 1:37 or what -- I 6 think that's totally appropriate for your business. I 7 think you might even find it surprising. My goodness, 8 most of the fast foods right now are advertising, "Come 9 eat with us late at night." And evidently, it's working 1 0 because more and more are jumping in line with it. 11 So maybe there are people who want to have a 12 late-night snack. I agree it probably isn't a real big, 13 heavy meal, but definitely the food. As far as the 14 menus, I didn't ever hear -- one question I forgot to 15 ask, but it's something I would certainly think ought to 16 be required is perhaps the menu ought to be on each table 17 in a tent-card kind of fashion so that it's always there; 18 not something that, you know, you're handed when you come 19 in or if not -- you know, like, "Oh, no. We don't want a 2 0 menu right now." 21 I think the menu needs to be visibte, easy to 22 read, and in a format that is always available so there's 23 no question that there's food available right now at any 24 time. I would ask that that be part of that. So work 25 that in however you'd like. DIANNE JONES & ASSOCIATES 310.472.9882 Page 144 , 1 Anyway, so I'd be willing to uphotd the -- 2 uphold the appeal. Is that correct? 3 MR. MARKMAN: Well, what I'm hearing-- 4 MS. WILLIAMS: Except-. 5 MR. MARKMAN: .. the motion I think we would 6 look for is this has to be by resolution. 7 MS. WILLIAMS: Okay. So you come back with a 8 resolution for us that -- 9 MR. MARKMAN: We would look for direction to 10 sustain the appeal -- II MS. WILLIAMS: Sustain the appeal. Okay. 12 MR. MARKMAN: -- in part and to modify the 13 planning connnission resolution by deleting the three 14 ~onditions that were delineated by Mr. Weston, and add 15 the conditions -- not only the planning commission 16 conditions, but the ones Mr. Weston suggested and the 1 7 . ones that were suggested this evening to the extent they 18 can be supported by engineering that have to do with 19 traffic control. 20 MS. WILLIAMS: Exactly. 21 MR. MARKMAN: In other words, everything that 22 will control the activity of that use, save those three 23 conditions which have been suggested would put them out 24 of business. 25 We will come back with a resolution that does DIANNE JONES & ASSOCIATES 310.472.9882 d52b402a-geS3-4535-b7S0-5eab9a5da4ea Page 145 1 that. 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MS. WILLIAMS: And knowing again, like I said -- MR. MARKMAN: If you pass a motion that-- MS. WILLIAMS: And it's written right in there, though, the three-month monitoring. I would urge our police department that when they do get a call from that area, that they make sure they're logging it very carefully. I know you do, but maybe in this case, even more vigilant about logging everything. So with that, I'd entertain a motion. MR. MICHAEL: There was one area on the rechecks. I think the condition read "three months and then another three months and then if everything was fine after that three months, then it was a year." Am I correct? MS. WILLIAMS: 1bree months, three months, then six months, wasn't it, which would be a total year? MR. MICHAEL: Ifit's three and three and six, that's fine. Okay. MS. WILLIAMS: Then start over again maybe. See if it's -- MR. MICHAEL: 1bree, six, and six is what it -- MS. WILLIAMS: Oh, it's three, six, and six? MR. COLEMAN: Condition 20 requires two DIANNE JONES & ASSOCIATES 310.472.9882 Page 147 1 MR. MARKMAN: Direct the preparation of the 2 resolution I previously described. 3 MS. WILLIAMS: So that would be a motion. 4 . MR. MARKMAN: It's actually going to be two 5 resotutions. Yes, that would be a resolution. 6 MS. WILLIAMS: Do you want to entertain that 7 motion? 8 MR. GUTIERREZ: So moved. 9 MR. MICHAEL: Second. 10 MS. WILLIAMS: Second. Cast your vote. 11 MS. ADAMS: Motion carried 3-1-1 with Spagnoto 12 voting "no" and Alexander abstaining. 13 MS. WILLIAMS: Do we need a motion to prepare 14 the second resolution? 15 MR. MARKMAN: No. I think we understand the 16 instructions. 17 MS. WILLIAMS: Okay. 18 (Whereupon, the proceedings concluded at 19 11:20 p.m.) 20 21 22 23 24 25 DIANNE JONES & ASSOCIATES 310.472.9882 Page 146 1 i I I 1 successive three-month reviews, which were supposed to 2 start at the time of the conunission's action. Then after 3 that, two successive six-month progress reports would be 4 provided to the conunission beginning from the date of the 5 last three-month review. 6 So two three-month reviews, and then we would 7 come back as a staff and give them a progress report six 8 months later and then again six months after that. 9 MS. WILLIAMS: Okay. And that's written in? 10 MR. MICHAEL: I woutd just add that 11 Margarita Beach needs to go way out of the way -- which I 12 believe they have done that to a large degree, but I 13 don't think any neighborhood in our city should have to 14 return to or even come close to enduring what we've heard 15 over the last year. 16 I would just encourage the residents also to 1 7 file reports if there's a warrant for a report, so we 18 have those things on record that they're there. I would 19 ask the two parties to have dialogue to maybe solve some 20 of the other ancillary issues for a larger or greater 21 compatibility. That would include the people in the 2 2 Pines Mobile Home Park also and the owners there. 23 MS. WILLIAMS: Is that a motion? I mean, not a 24 motion -- yeah, a motion is directed to prepare a 25 resolution? DIANNE JONES & ASSOCIATES 310.472.9882 Page 148 1 I, ANDREA M. SIMONIS, Certified Shorthand 2 Reporter, License No. 11620, do hereby certify: 3 That the foregoing proceedings were taken down 4 by me in shorthand at the time and place therein named 5 and thereafter reduced to computerized transcription 6 under my direction. 7 I further certify that I am not interested in 8 the event of the action. 9 10 WITNESS this _ day of 11 2006. 12 13 14 ANDREA M. SIMONIS 15 16 17 18 19 20 21 22 23 24 25 DIANNE JONES & ASSOCIATES 310.472.9882 d52b402a-ge83-4535-b780-Seab9a5da4ea