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Resolution 1996-17 . . RESOLUTION NO. 96-17 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY MAKING CERTAIN FINDINGS AND REVOKING BAR PERMIT NO. 103355 ISSUED TO CLUB AS DE OROS AND JESUS MANUEL DE LA CRUZ WHEREAS, a business known as the Club As De Oros, owned by Jesus Manuel De La Cruz ("Appellant") is the possessor of Gilroy Barroom Permit No. 103355 (the "Bar Permit"); and WHEREAS, the Bar Permit was most recently issued on January 22, 1996, and was accepted by Appellant in writing; and WHEREAS, in the attachment to the Bar Permit there are recitals that provide in pertinent part as follows: During the past year, there have been 110 calls for service in and around this location. Included in those calls were two incidents in which minors were located inside the bar. There have been several incidents of public intoxication and peace disturbances caused by music, fights and loud customers. It is the responsibility of the bar owner to take necessary measures to insure that these incidents are kept to a minimum. and WHEREAS, condition 11 of the Bar Permit provides as follows: 11. Club As De Oros must comply with all laws and regulations, including those pertaining to the distribution of alcohol and WHEREAS, the Bar Permit further provides: Failure to comply with the requirements and restrictions imposed by the Chief of Police, or by this permit, will be grounds for revocation of the permit, in addition to those grounds for revocation of a bar permit as set forth in Section 16.5 of Chapter 16 of the Gilroy City Code. WHEREAS, pursuant to Section 16.5 of the Gilroy City Code the City Administrator is authorized to revoke barroom permits subject to review by the City Council; and IALF\301973.01 62-041704706002 -1- RESOLUTION 96-17 . . WHEREAS, on February 23, 1996 the city Administrator took action to revoke the Bar Permit, and issued a "Notice of Revocation of Bar Permit" in writing stating in part that the Bar Permit would be revoked effective March 12, 1996 unless the revocation was appealed to the city Council for hearing on March 11, 1996, which Notice of Revocation was served upon Appellant on February 23, 1996; and WHEREAS, Appellant on February 26, 1996 presented to the City its "Notice of Right to Appeal" exercising its right to a hearing by the City Council; and WHEREAS, the City Council scheduled a duly noticed public hearing for March 11, 1996, at which meeting various presentations by the public and by the Attorney for Appellant were entertained, and the commencement of the evidentiary portion of the hearing was continued at the request of Appellant until April 8, 1996; and WHEREAS, said evidentiary hearing was conducted by the City Council, sitting as a quasi-judicial body, on April 8, April 9, April 11 and April 16, 1996, at which hearing the City received oral and written testimony presented by the City Administrator and by the Appellant, and both the City Administrator and Appellant were permitted to cross-examine witnesses presented by the other party, to present his own testimony through his own witnesses, and to present documentary evidence and written and oral argument to the City Council; and WHEREAS, members of the public were also permitted to address the City Council on this matter; and WHEREAS, the City Council has carefully considered and reviewed all of the written and oral testimony offered in this matter and the arguments of the City Administrator and Appellant. IALF\301973.01 62-041704706002 -2- RESOLUTION 96-17 . . NOW, THEREFORE, BE IT RESOLVED THAT the Gilroy City Council hereby makes findings that are supported by substantial evidence in the record as follows: 1. Without a required adult business permit, Club As de Oros has operated on at least two occasions (February 6, 1996 and February 8, 1996) as an "adult cabaret," as described by City Code Sec. 2A.1(a) (3), featuring semi-nude female lap dancers under the age of 18. The entertainment included the exposure of "specified anatomical areas" as described by City Code Sec. 2A.1(r) and "specified sexual activities" that are described under City Code Sec. 2A.1(t). This entertainment is found to be in violation of the following City Code sections: a) Sec. 2A.2 (operation of adult business without a permit); b) Sec. 2A.20(a) (1) (admittance of persons under 18) c) Sec. 2A.20(a) (2) (persons under 18 remaining at premises) d) Sec. 2A.20 (a) (4) (persons under 18 working at premises) e) Sec. 2A.23(1) (a) and (5) (breach of duty re: operation w/o permit) f) Sec. 2A.24 (a) and (b) (conduct in violation of Chapter is declared to be a public nuisance and a misdemeanor) Each of these repeated violations is found to be disorderly conduct that is declared to be a public nuisance and is detrimental to the public welfare. 2. In violation of City Code Sec. 16.13-1, the entertainment at Club As de Oros has been performed on at least two occasions (February 6, 1996 and February 8, 1996) while "nude", as that term is used in that Section. This IALF\30197301 62-ll4170471l6OO2 -3- RESOLUTION 96-17 duty defined by Sec. 2A.23(1) (a) and (5). C1 ub As de Oros . . conduct is in violation of the terms of the Bar Permit itself. 3. Club As de Oros has failed to comply with laws and regulations and has thereby violated the terms of the Bar Permit by operating on at least two occasions (February 6, 1996 and February 8, 1996) in violation of City Code Sec. 2A.2 (non-permitted adult business) and in violation of the has further failed to comply with all laws and regulations by violating City Code Sec. 2A.20(a) (1) (admittance of persons under 18), Sec. 2A.20 (a) (2) (persons under 18 remaining at the premises), and Sec. 2A.20 (a) (4) (persons under 18 working at premises) . 4. On numerous occasions (including April 30, 1995, November 25, 1995, December 8, 1995, January 28, 1996, January 29, 1996, February 6, 1996 and February 8, 1996) persons under the age of 21 have been permitted to enter into and to remain in the Club As de Oros in violation of Bus. & Prof. Code Sec. 25665. The last four of these violations occurred after the Bar Permit was renewed by the Appellant on January 22, 1996, at which time Appellant signed the Bar Permit acknowledging the existence of prior violations involving the presence of minors in the Club. This conduct is in violation of the terms of the Bar Permit i tse1 f. 5. The repeated and continuing operation of Club As de Oros as an unlawful adult business, specifically involving the repeated use of persons under the age of 18 as featured entertainers, is found to be repeated disorderly conduct that is detrimental to the public welfare and grounds for revocation of the Bar Permit under City Code Section 16.5 6. The repeated and continuing operation of Club As IALF\301973.01 62-041704700002 -4- RESOLUTION 96-17 . . de Oros in such a manner as to allow minors to enter into and remain in the premises is found to be repeated disorderly conduct that is detrimental to the public welfare and grounds for revocation of the Bar Permit under City Code Section 16.5 7. Club As de Oros has violated the terms of the Bar Permit by its failure to comply with all laws and regulations including those pertaining to the distribution of alcohol, thus constituting grounds for revocation of the Bar Permit under the terms of the Bar Permit itself. BE IT FURTHER RESOLVED THAT based upon the foregoing findings Permit No. 103355 issued to Club As de Oros is hereby revoked effective April 22, 1996. PASSED AND ADOPTED this 22nd day of April, 1996 by the following vote: AYES: COUNCILMEMBERS: GILROY, MORALES, ROGERS, ROWLISON, SPRINGER, VALDEZ, GAGE NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None APPRnD: LV!y14 (j) j . Donald F. Gage, M City C erk IALF\301973.01 62-ll41704700002 -5- RESOLUTION 96-17 . . I, SUSANNE E. STEINMETZ, City Clerk of the City of Gilroy, do hereby certify that the attached Resolution No. 96-17 is an original resolution, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council held on the 22nd day of which meeting a quorum was present. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this 26th day of April ,1996. April , 19~, at ,~~~y~~} (Seal)