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Ordinance 2010-07 ORDINANCE NO. 2010 - 07 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GILROY REPEALING AND READOPTING SECTION 28 OF THE GILROY ZONING ORDINANCE REGULATING ADULT BUSINESSES. WHEREAS, the City of Gilroy regulates adult businesses in order to protect the needs of the City and its residents today and in the future; and WHEREAS, the City Council enacted Ordinance 93-8 on March 15, 1993, for the purpose of establishing reasonable and uniform regulations designed to reduce the secondary effects that adult businesses have on the residents of the City; and WHEREAS, the City Council amended said ordinance on September 22, 1999, to comply with new statutory requirements resulting from the decision in Baby Tam & Co., Inc. v. City of Las Vegas, 154 F.3d 1097 (1998), pertaining to judicial review; and WHEREAS, on October 21, 2002, the City Council amended said ordinance to regulate sexual encounter establishments; and WHEREAS, the City Council has determined that certain activities, currently unregulated under Gilroy's Adult Business Ordinance, are likely to have deleterious secondary effects on the health, safety and well being of the community; and WHEREAS, the City Council recognizes the possible harmful effects on children and minors exposed to the effects of such adult businesses, including the need and desire of children and minors to stay away from and avoid such businesses, which causes children to be fearful and cautious when walking through or visiting the immediate neighborhood of such businesses; and the City Council desires to minimize and control the adverse secondary side effects associated with the operation of adult businesses and thereby protect the health, safety, and welfare of the citizens of Gilroy; protect the citizens from increased crime; preserve the quality of life; preserve property values and the character of surrounding neighborhoods and businesses; deter the spread of urban blight and protect against the threat to health from the spread of communieable and sexually transmitted diseases; and WHEREAS, the City Council finds that loeational criteria are a legitimate and reasonable means of ensuring that adult businesses are conducted in a manner so as to minimize their adverse secondary effects and to thereby protect the health, safety, and welfare of the city's residents, protect citizens from increased crime, preserve the quality of life, preserve property values and the character of surrounding neighborhoods and businesses and deter the spread of urban blight. The loeational requirements contained in this ordinance do not unreasonably restrict the establishment or operation of constitutionally protected adult businesses in Gilroy and a sufficient and reasonable number 1 ORDINANCE NO. 2010-07 \MDOlINGER\812627.2 032310-04706083 of alternative locations for adult businesses are provided by this ordinance. The City Council takes legislative notice of the Untied States Supreme Court decision in City of Renton v. Playtime Theatres. Inc. that requires the City provide adult businesses a reasonable opportunity to open and operate. The City Council also takes legislative notice of the Ninth Circuit's decisions in Topanga Press Inc. v. City of Los Angeles and finds that under the distance and locational restrictions set forth in this ordinance there are sufficient sites available for adult businesses within the City; and WHEREAS, the City Council also finds that locational criteria alone do not adequately protect the health, safety and general welfare of the citizens of Gilroy and thus certain requirements with respect to ownership, operation and licensing of adult businesses are in the public interest. In addition to the fmdings and studies conducted in other cities regarding increases in crime rates, decreases in property values and the blighting of areas in which such businesses are located, the City Council takes legislative notice of the following: (1) the facts recited in the Ninth Circuit Court of Appeals case entitled Kev. Inc. v. Kitsao County regarding how live adult entertainment results in secondary effects such as prostitution, drug dealing and other law enforcement problems and (2) the facts and holding of the case of Gammoh v. City of La Habm, wherein the Ninth Circuit recognized that off stage performances by performers who also perform nude and/or semi-nude at an adult entertainment establishment can cause the same secondary effects as other activities documented in studies and case law regarding adult establishments, even if the performer is clothed and the establishment does not serve alcohol; and WHEREAS, relying on the foregoing and on those findings made below, the City fmds that adult businesses in Gilroy may lead to detrimental secondary effects including prostitution, engagement in unlawful sexual activity and engagement in unlawful drug sales and activity. The City Council bases this conclusion on experiences in other similarly situated communities in California and nationwide; and WHEREAS, in addition to the foregoing, and any findings made previously by the City Council in enacting prior versions of this the City's ordinances regulating adult entertainment establishments, the City Council finds the following, based upon its understanding of the documents and judicial decisions cited herein: (1) Evidence indicates that some dancers, models and entertainers, and other persons who publicly perform specified sexual activities or publicly display specified anatomical parts in adult businesses (collectively referred to as 'performers') have been found to engage in sexual activities with patrons of adult businesses on the site of the adult business; (2) Evidence has demonstrated that performers employed by adult businesses have been found to offer and provide private shows to patrons who, for a price, are permitted to observe and participate with the performers in live sex shows; 2 ORDINANCE NO. 2010-07 \MDOLlNGER\812627.2 032310-04706083 (3) Evidence indicates that performers at adult businesses have been found to engage in acts of prostitution and drug dealing with patrons of the establishment; (4) Evidence indicates that fully enclosed booths, individual viewing areas, and other small rooms whose interiors cannot be seen from public areas of the establishment regularly have been found to be used as locations for engaging in unlawful sexual activity; (5) As a result of the above, and the increase in incidents of AIDS and Hepatitis B, which are both sexually transmitted diseases, the City has a substantial interest in adopting regulations which will reduce, to the greatest extent possible, the possibility for the occurrence of prostitution, drug dealing and casual sex acts at adult businesses in order to protect the health, safety and welfare of its citizens; (6) The public health, safety and welfare of all persons in the City must be protected by the establishment of standards to diminish the possibility of infection of contagious diseases; (7) Enclosed or concealed booths, bathrooms open to more than one person (which do not have an attendant present at all times), and dimly lit areas within adult businesses greatly increase the potential for misuse of the premises, including unlawful conduct of a type which facilitates transmission of disease. Enacting the following requirements will reduce the opportunity for, and therefore the incidence of, illegal conduct within adult businesses and further facilitates the inspection of the interior of the premises thereof by law enforcement personnel: (i) all indoor areas must be open to view by management at all times (ii) adequate lighting must be provided (iii) separate bathrooms must be provided for performers and patrons; and (iv) bathrooms for patrons must either have an attendant present at all times or be limited to one person using such bathroom at a time. (v) no television monitors or video projection, recording or reproduction equipment are to be permitted in restrooms. (8) Preventing the exchange of money between performers and patrons also reduces the likelihood of drug and sex transactions occurring in adult businesses; (9) Requiring separations between performers and patrons precludes them from being within earshot to communicate and thereby reduces the likelihood that such persons will negotiate narcotics sales and/or transact sexual favors within the adult business; (10) Prohibiting physical contact between performers and patrons at adult businesses, requiring separate entrances for performers and patrons at adult 3 ORDINANCE NO. 2010-07 \MDOlINGER\812627.2 032310-04706083 businesses, requiring separate entrances for performers from those used for patrons, requiring adult performances to take place on a raised stage that is separated from patrons by a distance of at least six feet, requiring separate restrooms for performers and patrons and for persons of opposite sexes, prohibiting performers from soliciting payment from patrons, and prohibiting the direct payment to performers by patrons are a reasonable and effective means of addressing the legitimate governmental interests of preventing prostitution, the spread of sexually transmitted diseases and drug transactions, The case law and studies reviewed serve as a reasonable basis to establish this link; (11) A closing hours requirement promotes the reduction of deleterious secondary effects from adult facilities. Such finding is reasonably based on prior court decisions on the need for closing hours, including the 2003 Ninth Circuit case of Center for Fair Public Policy v. Maricopa County and other studies in the record including "Closin' Time: Effective Regulation of Adult Businesses; Hours of Operation". Such a fmding is also based on the finding that such standards do not preclude reasonable alternative avenues of communication. For example, the closing hours requirement in the ordinance still allows adult businesses to operate seven days a week seventeen (17) hours per day. In addition, the City Council takes note of the proliferation of adult material on the internet, satellite television, direct television, CDs, DVDs and that these various media provide alternative avenues of communication; (12) Establishment and maintenance of an adult business regulatory licensing process and operational standards for adult businesses are legitimate and reasonable means of minimizing the adverse secondary effects of adult businesses by ensuring that: (i) Operators of and performers at adult businesses comply with the city's regulations; (ii) The recognized adverse secondary effects of a proposed adult business are mitigated; (iii) Adult business operators have specific guidelines with respect to the manner in which they can operate an adult business; and (iv) The applications for an adult business regulatory license are handled fairly and expeditiously. WHEREAS, in adopting this ordinance, City Council takes legislative notice of the existence and content of: studies concerning the adverse secondary side effects of adult businesses in other cities, including those in Garden Grove, California (1991); Tucson, Arizona (1990); Seattle, Washington (1989); Austin, Texas (1986); Oklahoma City, Oklahoma (1986); Indianapolis, Indiana (1984); Houston, Texas (1997); Beaumont, Texas (1982); Minneapolis, Minnesota (1980); Phoenix, Arizona (1979); Whittier, California (1978); Amarillo, Texas (1977); Cleveland, Ohio (1977); Los Angeles, California (1977); New York, New York (1994); Newport News, Virginia (1996); Times Square, New York City (1994). In addition, City Council of the City of 4 ORDINANCE NO. 2010-07 \MDOlINGER\812627.2 032310-04706083 Gilroy takes legislative notice of the existence and content of other studies concerning the adverse secondary side effects of adult businesses, including: the Report of the Attorney General's Working Group on the Regulation of Sexually Oriented Businesses, Attorney General, State of Minnesota (1989); A Methodological Critique of the Linz- Paul Report: A Report to the San Diego City Attorney's Office (2003); Sexually Oriented Businesses: An Insider's View - Testimony of David Sherman before the Michigan House Committee on Ethics and Constitutional Law (2000); Closin' Time: Effective Regulation of Adult Businesses' Hours of Operation, by Scott Bergthold (2000); Summaries of Key Reports Concerning the Negative Secondary Effects of Sexually Oriented Businesses, by Louis Comus III (2001); Peep Show Establishments, Police Activity, Public Place and Time: A Study of Secondary Effects in San Diego, California, by Daniel Linz et al. (2006); Do Peep-shows "Cause" Crime? A response to Linz, Paul, and Yao, by Richard McCleary et al. (2006); and Rural Hot Spots: The Case of Adult Businesses, by Richard McCleary (2008). The City Council finds that these studies are relevant to the problems addressed by the City in enacting this ordinance to regulate the adverse secondary side effects of the adult businesses, including the specific activities regulated pursuant to this ordinance; and WHEREAS, in enacting this ordinance, the City Council has further considered the decisions of the United States Supreme Court and lower courts regarding local regulation of adult businesses, including but not limited to: City of Littleton. Colorado v. Z.J. Gifts D-4. 541 U.S. 744 (2004); City of Los Angeles v. Alameda Books, 535 U.S. 425 (2002); City of Erie. et al. v. Pap's A.M.. TDBA "Kandyland", 529 U.S. 277 (2000); Barnes v. Glenn Theater, 501 U.S. 560 (1991); City of Renton v. Pla~e Theatres. Inc. 475 U.S. 41 (1986); Gammoh v. City of La Habm, 395 F.3d 1114 (9 Cir. 2005), amended 402 F. 3d 875, cert denied 126 S.Ct. 374; Dream Palace v. County of Maricopa 384 F. 3d 990 (9th Cir. 2004); Center for Fair Public Policy v. Maricopa County, 336 F. 3d 1153 (9th Cir. 2003); Colacurcio v. City of Ken!, 163 F.3d 545 (9th Cir. 1998); Crawford v. Lungren, 96 F.3d 380 (9th Cir. 1996); Topanga Press. Inc. v. City of Los Angeles, 989 Fold 1524 (9th Cir. 1993) Kev. Inc. v. Kitsap County, 793 F. 2d 1053 (9th Cir. 1986); Fantasyland Video. Inc. v. County of San Diego, 373 F. Supp. 2d 1094 (2005); Krontz v. City of San Diego, 136 Cal.App. 4th 1126 (2006); Tily B., Inc. v. City of Newport Beach, 69 Cal.AppAth 1 (1998); City of National City v. Wiener, 3 Cal. 4th 832 (1992); and Morris v. Municipal Co!!!!. 32 Cal. 3d 553 (1982). WHEREAS, based on the foregoing, on February 1, 2010, the City Council adopted Ordinance No. 2010-04, which repealed Gilroy City Code Section 16.13-1, and repealed and re-adopted its adult business ordinance, Chapter 2A of the Gilroy City Code, in order to update said ordinance to ensure that the adverse secondary side effects of adult businesses will not contribute to an increase in crime rates, disease, or to the blighting or deterioration of the areas in which they are located or surrounding areas; and WHEREAS, it is not the intent of the City Council in enacting this ordinance to suppress any speech activities protected by the First Amendment, but rather to enact a content-neutral ordinance with addresses the adverse secondary effects of adult businesses in a manner that ensures the continued and orderly use and development of 5 ORDINANCE NO. 2010-07 \MDOlINGER\812627.2 032310-04706083 property, while at the same time protecting the rights conferred by the United States Constitution to adult businesses; and WHEREAS, Section 28 of the Gilroy Zoning Ordinance regulates adult businesses; and WHEREAS, it is necessary to repeal and re-adopt Section 28 of the Gilroy Zoning Ordinance in order to remove and avoid any and all inconsistencies in substantive or procedural requirements between it and Chapter 2A of the Gilroy City Code, as amended by Ordinance No. 2010-04; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES ORDAIN AS FOLLOWS: SECTION I Section 28 of the Gilroy Zoning Ordinance is hereby repealed and readopted in its entirety to read as follows: Section 28.10 Definitions In addition to the definitions contained in Section 2 of the Zoning Ordinance, the following words and phrases shall, for the purposes of this Section, be defined as follows, unless it is clearly apparent from the context that another meaning in intended. Should any of the definitions be in conflict with the current provisions of the Zoning Ordinance, the definitions in this chapter shall prevail: ADULT ARCADE. "Adult Arcade" shall mean establishment or portion thereof where, for any form of consideration, one or more still or motion picture projectors, slide projectors, or similar machines, or other image producing machines, for viewing by five (5) or fewer persons each, are used to show films, motion pictures, video cassettes, computer displays, slides, or other photographic reproductions which are characterized by the depiction or description of "Specified Sexual Activities" or "Specified Anatomical Areas." ADULT BOOKSTORE. ADULT NOVEL TV STORE. OR ADULT VIDEO STORE. "Adult Bookstore," "Adult Novelty Store," or "Adult Video Store" shall mean a commercial establishment which as a substantial portion of its stock-in-trade or a substantial portion of its revenues or devotes a substantial portion of its interior business or advertising to the sale, rental or viewing for any form of 6 ORDINANCE NO. 2010-07 \MDOLlNGER\812627.2 032310-04706083 consideration, or anyone or more of the following: books, magazines, periodicals or other printed matter, or photographs, films, motion pictures, video cassettes, slides, computer software or other visual representations which are characterized by the depiction or description of "Specified Sexual Activities" or "Specified Anatomical Areas", or instruments, devices or paraphernalia which are designed for use in connection with "Specified Sexual Activities. " (a) An establishment may have other principal business purposes or operations that do not involve the offering for sale, rental, or viewing of materials depicting or describing "Specified Sexual Activities" or "Specified Anatomical Areas," and still be categorized as Adult Bookstore, Adult Novelty Store, or Adult Video Store. Such other business purposes or operations will not serve to exempt such establishments from being categorized as an Adult Bookstore, Adult Novelty Store or Adult Video Store so long as one of its principal business purposes is offering for sale or rental, for some form of consideration, the materials specified above. (b) Exclusion. A commercial establishment shall not be considered to be an Adult Bookstore, Adult Novelty Store, or Adult Video Store, and shall not be required to obtain an "Adult Business Permit" under this chapter where (a) the commercial establishment rents or sells the material set forth above exclusively for off-premises use by the customer, and (b) a substantial portion of its business is not in selling or renting the material set forth above. ADULT BUSINESS. "Adult Business" shall mean those businesses meeting one or more of the following definitions: Adult Arcade; Adult Bookstore, Adult Novelty Store or Adult Video Store; Adult Cabaret; Adult Dance Studio; Adult Entertainment Enterprise; Adult Hotel or Adult Motel; Adult Motion Picture Theater; Adult Theater; Escort Agency; Figure Modeling Studio. ADULT BUSINESS PERMIT. "Adult Business Permit" shall mean that permit issued by the Chief of Police pursuant to the Municipal Code regulating Adult Business. ADULT CABERET. "Adult Cabaret" shall mean a nightclub, bar, restaurant, bottle club, or similar commercial establishment, whether or not alcoholic beverages are served, which features: 1) persons who appear Semi-Nude; 2) live performances which are characterized by the exposure of "Specified Anatomical Areas" or 7 ORDINANCE NO. 2010-07 \MDOLlNGER\812627 .2 032310-04706083 by "Specified Sexual Activities," or 3) films, motion pictures, laser disks, compact disks, digital videos or other digital recordings, holograms or other electronically generated images or devices, video cassettes, computer software, slides, or other photographic reproductions which are characterized by the depiction or description of "Specified Sexual Activities" or "Specified Anatomical Areas." ADULT DANCE STUDIO. "Adult Dance Studio" shall mean any establishment or business which provides for members of the public a partner for dance where the partner is "Nude" or "Semi- Nude" or where the partner, or the dance, is distinguished or characterized by the emphasis on matter depicting, or describing or relating to "Specified Sexual Activities" or "Specific Anatomical Areas." ADULT ENTERTAINMENT ENTERPRISE. "Adult Entertainment Enterprise" shall mean a commercial establishment, other than one defined in this subsection as an Adult Business, which has, as one of its principal business purposes, the offering of forms of entertainment on its premises involving the depiction or description of "Specified Sexual Activities" or "Specified Anatomical Areas." ADULT HOTEL OR ADULT MOTEL. "Adult Hotel" or "Adult Motel" shall mean a hotel or motel or similar commercial establishment which: 1) offers public accommodations, for any form of consideration, which provides patrons with closed-circuit television transmissions, films, motion pictures, laser disks, compact disks, digital videos or other digital recordings, holograms or other electronically generated images or devices, video cassettes, computer software, slides or other photographic reproductions which are characterized by the depiction or description of "Specified Sexual Activities" or "Specified Anatomical Areas" and which advertises the availability of this sexually oriented type of material by means of a sign visible from the public right-of-way, or by means of any off-premises advertising including, but not limited to, newspapers, magazines, pamphlets or leaflets, radio or television, or, 2) offers a sleeping room for rent for a period of time less than ten (10) hours; or 3) allows a tenant or occupant to sub rent the sleeping room for a time period of less than ten (10) hours. ADULT MATERIAL. "Adult Material" shall mean accessories, paraphernalia, devices, books, magazines, laser disks, compact disks, digital videos, digital video disk devices, photographs, prints, drawings, painting, motion pictures, pamphlets, videos, slides, tapes, games, holograms or electronically generated images or 8 ORDINANCE NO. 2010-07 \MDOLlNGER\812627.2 032310-04706083 devices including computer software, or any combination thereof that is distinguished or characterized by its emphasis on matter depicting, describing or relating to specified sexual activities or specified anatomical areas. ADULT MOTION PICTURE THEATER. "Adult Motion Picture Theater" shall mean a commercial establishment where films, motion pictures, laser disks, compact disks, digital videos or other digital recordings, holograms or other electronically generated images or devices, video cassettes, computer software, slides or similar photographic reproductions characterized by the depiction or description of "Specified Sexual Activities" or "Specified Anatomical Areas" are regularly shown for any form of consideration. ADULT THEATER. "Adult Theater" shall mean a theater, concert hall, auditorium, or similar commercial establishment which, for any form of consideration, regularly features persons who appear Semi- Nude or live performances which are characterized by exposure of "Specified Anatomical Areas" or by "Specified Sexual Activities." EMPLOYEE. "Employee" shall mean person who works or performs in and/or for an Adult Business, regardless of whether or not said person is paid a salary, wage or other compensation by the Operator of said business. ESCORT. "Escort" shall mean a person who, for any form of consideration or gratuity, agrees or offers to act as a companion, guide, or date for another person, or who agrees or offers to privately model lingerie or to privately perform a striptease for another person. ESCORT AGENCY. "Escort Agency" shall mean a person or business association which furnishes, offers to furnish, or advertises to furnish "Escorts" as one of its primary business purposes for a fee, tip, or other consideration. ESTABLISH. "Establish" shall mean and include any of the following: (a) To open or commence any such business as a new business; or (b) To convert an existing business, whether or not an Adult Business, to any of the Adult Businesses defined in this Section; or 9 ORDINANCE NO. 2010-07 \MDOLlNGER\812627.2 032310-04706083 (c To add any of the Adult Businesses defined in this Section to any other existing Adult Business; or (d) To relocate any such Adult Business. (e) To expand by ten percent (10%) or more that portion of the floor area of the premises open to the public as an Adult Business. If an Adult Business has obtained a Use Permit under the requirements set forth in Section 28 of the Zoning Ordinance, the maximum 10% expansion requirement is measured over the term of the Use Permit. FIGURE MODELING STUDIO. "Figure Modeling Studio" shall mean any establishment or business which provides for members of the public, the services of a live human model for the purposes of reproducing the human body, wholly or partially in the nude, by means of photograph, painting, computer software, sketching, drawing, or other pictorial form. MASSAGE PARLOR. "Massage Parlor" shall mean any place where, for any form of consideration or gratuity, massage, alcohol rub, administration of fomentations, electric or magnetic treatments, or any other treatment manipulation of the human body which occurs as a part of or in connection with "Specified Sexual Activities," or where any person providing such treatment, manipulation, or service related thereto, exposes "Specified Anatomical Areas." The definition of Adult Business shall not include the practice of massage in any licensed hospital, nor by a licensed hospital, nor by a physical surgeon, chiropractor or osteopath, nor by a nurse or technician working under the supervision of a licensed surgeon, chiropractor or osteopath, nor by trainers for any amateur, semiprofessional or professional athlete or athletic team for a school athletic program, nor by any California State licensed massage practitioners. NUDITY OR STATE OF NUDITY. "Nudity or State of Nudity" shall mean the appearance of human bare buttocks, anus, male genitals, female genitals, or the areola or nipple of the female breast. "Nudity or State of Nudity" shall not mean nor include a person who appears in a State of Nudity in a modeling class operated: (a) By a proprietary school, licensed by the State of California; a college, junior college, or university supported entirely or partly by taxation; or (b) By a private college or university which maintains and operates educational programs in which credits are transferable to a college, junior college, or university supported entirely or partially by taxation; or 10 ORDINANCE NO. 2010-07 \MDOLlNGER\812627.2 032310-04706083 (c) In a structure which: (a) has no sign visible from the exterior of the structure and no other advertising that indicates a nude person is available for viewing; and (b) where, in order to participate in a class, a student must enroll at least three (3) days in advance of the class; and (c) where not more than one nude model is on the premises at anyone time. OPERATOR. "Operator" shall mean and include the owner, "Permitee," general manager, operator or person in charge of an Adult Business or proposed Adult Business. PERMITEE. "Permitee" shall mean a Person in whose name a Permit to operate an Adult Business has been issued, as well as the individual listed as an applicant on the application for a Permit. PERSON. "Person" shall mean any individual, firm, co-partnership, joint venture, association, social club, fraternal organization, corporation, estate, trust, business trust, receiver, syndicate, county, city and county, municipality, district, joint powers authority or other political subdivision, or any other group or combination acting as a unit. PUBLIC BUILDING WITH PROGRAMS FOR MINORS. "Public Building with Programs for Minors" shall mean any publicly owned building wherein training, education, or any other program designed primarily for minors is conducted. PUBLIC PARK OR RECREATION AREA. "Public Park or Recreation Area" shall mean public land which has been designated for park, recreational, or arts activities including, but not limited to, a park, playground, swimming pool, reservoir, athletic field, basketball or tennis courts, or similar public land. RELIGIOUS INSTITUTION. "Religious Institution" shall mean any church, synagogue, mosque, temple or building which is used primarily for religious worship and related religious activities. RESIDENTIAL ZONE. "Residential Zone" shall mean property which is zoned for a single family house, duplex, townhouse, multiple family dwelling(s), or mobile home park or subdivision, and campground, recreational trailer park, or travel trailer park. SEMI-NUDE. "Semi-Nude" shall mean a state of dress in which clothing covers no more than the genitals, pubic region, and 11 ORDINANCE NO. 2010-07 \MDOLlNGER\812627 .2 032310-04706083 areolae of the female breast, as well as portions of the body covered by supporting straps or devices. SEMI-NUDE MODEL STUDIO. "Semi-Nude Model Studio" shall mean any place where a person, who appears Semi-Nude or displays "Specified Anatomical Areas" is provided for money or any form of consideration to be observed, sketched, drawn, painted, sculpted, photographed, or similarly depicted by other persons. SEXUAL ENCOUNTER ESTABLISHMENT. "Sexual Encounter Establishment" shall mean a business or commercial establishment that as one of its primary business purposes, otters for any form of consideration, a place where two or more persons may congregate, associate, or consort for the purpose of "Specified Sexual Activities" or the exposure of "Specified Anatomical Areas" or activities when one or more of the persons is Semi-Nude or in the State of Nudity. The definition of Adult Business shall not include an establishment where a medical practitioner, psychologist, psychiatrist, or similar professional person licensed by the State of California engages in medically approved and recognized sexual therapy. SCHOOL. "School" shall mean any publicly or privately owned or operated educational Center or Day Care. SPECIFIED ANATOMICAL AREAS. "Specified Anatomical Areas" shall mean and included any of the following: (a) Less than completely and opaquely covered human genitals, pubic region, buttocks, anus, or female breast below a point immediately above the top of the areola; or (b) Human male genitals in a discernibly turgid state, even if completely and opaquely covered. SPECIFIED CRIMINAL ACT(S). "Specified Criminal Act(s)" shall mean acts which are sexual crimes against children, sexual abuse, sexual assault, rape, prostitution, solicitation of prostitutes, pandering, pimping, unlawful acts of sexual intercourse, sodomy, oral copulation, or masturbation occurring on the premises of an Adult Business, or crimes including, but not limited to, distribution of obscenity or material harmful to minors. SPECIFIED SEXUAL ACTIVITIES. "Specified Sexual Activities" shall mean and include any of the following: (a) The fondling or other intentional touching of human genitals, pubic region, buttocks, anus, or female breasts; or 12 ORDINANCE NO. 2010-07 \MDOlINGER\812627.2 032310-04706083 (b) Sex acts, normal or perverted, actual or simulated, including intercourse, oral copulation, or sodomy; or (c) Masturbation, actual or simulated; or (d) Human genitals in a state of sexual stimulation, arousal or tumescence; or (e) Excretory functions as part of or in connection with any of the activities set forth in subdivisions 1 through 4 of this subsection. TRANSFER OF OWNERSHIP OR CONTROL OF AN ADULT BUSINESS. "Transfer of Ownership or Control of an Adult Business" shall mean and include any of the following: (a) The sale, lease or sublease of the business; or (b) The transfer of securities which constitute a controlling interest in the business, whether by sale, exchange, or similar means; or (c) The establishment of a trust, gift or other similar legal device which transfers ownership or control of the business. USE PERMIT. "Use Permit" shall mean a conditional use permit approved by the City of Gilroy in accordance with its Zoning Ordinance regulations including this Section. VIEWING BOOTH. ''Viewing Booth" shall mean any portion of an Adult Business which portion is: (a) Partially enclosed; and (b) Has a floor area of less than one hundred fifty (150) square feet; and (c) Is designed for viewing films, motion pictures, laser disks, compact disks, digital videos or other digital recordings, holograms or other electronically generated images or devices, video cassettes, computer displays, slides, or other photographic reproductions which are characterized by the depiction or description of "Specified Sexual Activities" or "Specified Anatomical Areas." Section 28.20 Prohibition (a) A Person shall not use any premises for an Adult Business or Establishment or operate an Adult Business except within the Shopping Center Commercial District (C3) excluding C3 property that is part of a block which abuts First Street, unless otherwise permitted in this Section, and 13 ORDINANCE NO. 2010-07 \MDOlINGER\812627.2 032310-04706083 then only as specified in this Section; and subject to all other applicable regulations enumerated in the Zoning Ordinance, the Gilroy City Code and State or Federal law. (b) Upon the Transfer of Ownership or Control of an Adult Business in existence upon the effective date of this Section which is located outside the Shopping Center Commercial District (C3), such Adult Business shall cease its operations or otherwise be deemed in violation of this Section and the Zoning Ordinance. (c) No Person shall use any premises for a Sexual Encounter Establishment or operate a Sexual Encounter Establishment in any zoning district of the City. (d) All Adult Businesses providing live entertainment shall comply with all requirements set forth in Chapter 2A, Sections 2A.2 (Prohibitions) and 2A.3 (Locational Regulations) of the Gilroy City Code. Section 28.30 Locational Regulations (a) No Person shall Establish or cause or permit to be Established an Adult Business premises within 1,000 feet of another Adult Business premises, within one thousand (1,000) fee of any School, Public Park or Recreation Area, Public Building with Programs for Minors, or within one thousand (1,000) feet of any Residential Zone or Religious Institution. (b) Any Adult Business lawfully established and lawfully operating under the Zoning Ordinance and the City Code is not in violation of these regulations by the subsequent establishment of a School, Public Park or Recreation Area, Public Building with Programs for Minors, Residential Zone, or Religious Institution within the respective distances specified in subsection (a) above for each type of use. This provision applies only to the renewal of a valid Use Permit and does not apply when an application for a Use Permit is submitted after a Use Permit has expired or has been revoked. Section 28.40 Measurement of Distance (a) Distance between any two Adult Business premises shall be measured in a straight line, without regard to intervening structures or objects, from the nearest entrance of an Adult Business premises to the nearest entrance of the 14 ORDINANCE NO. 2010-07 \MDOLlNGER\812627.2 032310-04706083 second Adult Business premises. The distance between any Adult Business premises and any Religious Institution, School, Public Park or Recreation Area, Public Building with Programs for Minors or Residential Zone shall also be measured in a straight line, without regard to intervening structures or objects, from the nearest entrance of the Adult Business premises to the nearest property line of a Religious Institution, School, Public Park or Recreation Area, Public Building with Programs for Minors or Residential Zone. Section 28.50 Use Permits Section 28.51 Use Permit--Requirement (a) Adult Businesses shall be conditionally permitted in the Shopping Center Commercial District (C3), except for C3 property that is part of a block which abuts First Street. In addition to those regulations governing conditional use permits set forth in the Zoning Ordinance and except as modified in this Section, and in addition to those regulations set forth in the Gilroy City Code, any Adult Business shall be subject to the following regulations: (b) All persons wishing to Establish an Adult Business within the City must apply for a Use Permit, and cannot Establish such a business until a Use Permit is granted and effective. (c) It is the burden of the applicant to supply evidence to justify the grant of a Use Permit. (d) Any Person desiring to operate an Adult Business within the City shall file with the Planning Division a Use Permit application on a standard application form supplied by the Planning Division, and, in addition, provide the information and documents required pursuant to Section 28.60. (e) In addition to any conditions that may be placed on the approval of a Use Permit by the Planning Commission or by the City Council on appeal, no Use Permit shall become effective until such time as the Permittee has received an Adult Business Permit from the Chief of Police. Section 28.52 Use Permit--Contents of Application (a) The applicant shall be the Operator of the proposed Adult Business. (b) The application must also be signed by the property owner if different from the applicant. 15 ORDINANCE NO. 2010-07 \MDOLlNGER\812627.2 032310-04706083 \MDOLlNGER\812627.2 032310-04706083 (c) The application shall include the property owner's and the applicant's mailing address, and name and phone number of the person who is responsible for providing access to the proposed use for inspection purposes. (d) The application shall list the legal form of the applicant; e.g., individual, partnership, corporation. (e) If the applicant is an individual, the application shall list his or her legal name, and any aliases. (f) If the applicant is a partnership, the application shall list the full and complete name of the partnership, the legal names of all partners, and all aliases used. (g) If the applicant is a corporation, the application shall list the full and complete corporate name, the legal names, and all aliases used by officers, directors and principal stockholders (i.e., all stockholders with 10% or more of all outstanding shares). (h) The application shall state whether, preceding the date of application, the applicant or any of the entities or individuals listed pursuant to subparagraphs (a) through (g) of this subsection, has: (i) Had a previous Use Permit under this Section revoked and if so, the date of such revocation; and (ii) Whether the applicant has been a partner in a partnership or an officer, director or principal stockholder of a corporation whose Use Permit under this Section has been revoked, as well as the date of the revocation. (k) The application shall include a detailed description of all proposed uses using the definitions contained in Section 28.10 wherever applicable. (I) The application shall include a statement that the locational regulations of Section 28.30 have been satisfied using the method of measurement described in Section 28.40. (m) The application shall include accurately scaled plot plans indicating the structure in which the Adult Business is to be conducted, identifying and locating all land uses and property lines within a radius of one thousand two hundred fifty (1,250) feet of the structure, indicating all structures (existing and proposed), parking areas, landscaping, walls, driveways and curb-cuts, signs, and topographical and features. The application shall also include a floor plan and any other pertinent information, including the location of viewing booths (if applicable), necessary to make a permit determination under this Section and Chapter 2A of the Gilroy City Code. 16 ORDINANCE NO. 2010-07 (n) If the Adult Business proposes to operate a Viewing Booth(s), the applicant shall not only fully comply with the Gilroy City code provisions concerning Viewing Booths, but the applicant shall also submit a diagram of the interior premises in accordance with the requirements set forth in the Gilroy City Code as part of the contents of the application. Section 28.53 Use Permit--Application Fee (a) The City Council, by resolution, shall set a reasonable non-refundable application fee for a Use Permit for an Adult Business. The fee shall not exceed the reasonable estimated costs of the City to process the permit application. Section 28.54 Use Permit --Time to Grant or Deny (a) Within thirty (30) days from the date the application for a Use Permit for an Adult Business is date-stamped received at the Planning Division, the Planning Division Manager shall determine if it is complete, and if incomplete, shall notify the applicant in writing of its specific deficiencies. If a written determination is not provided to the applicant within thirty (30) days after the application is submitted to the Planning Division, the application shall be deemed complete. (b) The Planning Commission shall grant, conditionally grant, or deny an application for a Use Permit for an Adult Business within three (3) months from the date the application is determined or deemed to be complete in all cases except where a negative declaration or Environmental Impact Report is required under the California Environmental Quality Act ("CEQA") and/or the CEQA Guidelines, and its processing cannot be completed within the above time limit. In such cases, the application shall be diligently processed where feasible to do so and in compliance with the timelines set forth in CEQA or the CEQA Guidelines. (c) All department or agency inspections, including, but not limited to health, fire, and building inspections, which are required for the Planning Commission to consider the issuance of a Use Permit shall be completed within the time limits for Planning Commission action provided in this Section. Section 28.55 Use Permit -- Development and Performance Standards 17 ORDINANCE NO. 2010-07 \MDOLINGER\812627.2 032310-04706083 \MDOLlNGER\812627.2 032310-04706083 (a) Adult Businesses shall comply with all of the following development and performance standards: (1) Advertisements, displays or other promotional materials depicting or describing "Specified Anatomical Areas" or "Specified Sexual Activities," or displaying instruments, devices, or paraphernalia which are designed for use in connection with "Specified Sexual Activities" shall not be shown or exhibited so as to be visible from. other areas open to the general public. (2) All building openings, entries, and windows for an Adult Business shall be located, covered, or screened in such a manner as to prevent a view into the interior of an Adult Business from any area open to the general public. (3) All entrances to an Adult Business shall be clearly and legibly posted by a notice indicating that minors are prohibited from entering the premises. (4) No loudspeakers or sound equipment shall be used by an Adult Business for the amplification of sound to a level discernible by the public beyond the walls of the building in which the Adult Business is conducted. (5) No residential structure or any other non- conforming structure shall be converted for use as an Adult Business after enactment of the provisions of the Section. (6) An on-site security program, including required interior and exterior lighting plans, shall be prepared and implemented. The security program shall include the following: (7) The presence of an on-site manager during all business hours. (8) All off-street parking areas and building entries serving the Adult business shall be illuminated during all hours of operation with a lighting system designed to provide a minimum maintained horizontal illumination of greater than one (1) foot candle light on the parking surface and/or walkway. In the event the Adult Business shares its parking with other businesses, this requirement shall only apply within a radius of one hundred (100) feet from any entrance to the Adult Business. (9) All interior portions of the Adult Business, except those areas devoted to mini-motion or motion pictures, shall be illuminated during all hours of operation with a lighting system designed to provide a minimum maintained horizontal illumination of not less than two (2) foot candles of light at the floor. 18 ORDINANCE NO. 2010-07 (10) All exterior areas of Adult Businesses, including buildings, landscaping and parking areas, shall be maintained in a clean and orderly manner. (11) An Adult Business shall not remain open for business, or permit any Employee to engage in a performance, solicit a performance, make a sale, solicit a sale, provide a service, or solicit a service, between the hours of 1 :00 a.m. and 8:00 a.m. of any particular day. These hours of operation may be further restricted in the conditions approving a Use Permit for an Adult Business. Section 28.56 Use Permit--Denial (a) The Planning Commission shall deny the application for a Use Permit for any of the following reasons: (b) The application does not meet the standards set forth in Section 50.32. (c) An applicant or an applicant's spouse is overdue on his/her payment to the City of taxes, fees, fines, or penalties assessed against him/her or imposed upon him/her in relation to an Adult Business. (d) An applicant has failed to provide information required on the application for the issuance of the Use Permit or has falsely answered a question or request for information on the application form. (e) The premises to be used for the Adult Business have not been approved as being in compliance with health, fire and building codes by the department or agency responsible under law for investigating said compliance. (f) The required application or permit fees have not been paid. (g) The proposed location is in violation of, or is not in compliance with, any of the provisions of this Section including, but not limited to, the locational requirements for an Adult Business under this Section. (h) The granting of the application would violate a City or County, State or Federal statute, ordinance, regulation or court order. (I) The applicant has had a Use Permit under this Section, or an Adult Business Permit revoked within the preceding twelve (12) months. 0> The proposed use does not conform to the requirements of the Zoning Ordinance and provisions of the Gilroy City Code. (k) The applicant has applied for a Use Permit for a particular location within a period of twelve (12) months from 19 ORDINANCE NO. 2010-07 \MDOLlNGER\812627.2 032310-04706083 the date of denial by the City of a previous application for a Use Permit at the same location, and there has not been an intervening change in the circumstances which could reasonably be expected to lead to a different decision regarding the former reasons for denial. Section 28.57 Use Permit--Expiration (a) Any unrevoked Use Permit or renewed Use Permit issued pursuant to this Section, shall, by its own terms, contain a specified expiration date no later than three (3) years after its issuance. (b) Any Use Permit approved pursuant to this Section shall become null and void unless the proposed use is established within one (1) year of the date of the approval. Section 28.58 Use Permit--Renewal (a) Any unrevoked Use Permit issued pursuant to this Section may be renewed upon written application to the Planning Commission made at least thirty (30) calendar days before the expiration date of a current, valid Use Permit and payment of the then current non-refundable application fee. A Use Permit shall remain valid pending the Planning Commission's decision if the Permitee has timely filed a complete application for renewal with proper fee payment. For good cause, the Planning Commission may extend the time for filing a renewal application for up to ninety (90) days and may extend the prior Use Permit pending decision on the renewal application. (b) The application for renewal shall supply current information with respect to each category of information required in the initial application. Within thirty (30) days from the date the application for a Use Permit for an Adult Business is date-stamped and received at the Planning Division, the Planning Division Manager shall determine if it is complete, and if incomplete, shall notify the applicant in writing of its specific deficiencies. If a written determination is not provided to the applicant within thirty (30) days after it is submitted to the Planning Division, the application shall be deemed complete. (c) The Planning Commission shall make its decision on an application for the renewal of a Use Permit for an Adult Business within three (3) months from the date the application is deemed to be complete in all cases except where a negative declaration or Environmental Impact 20 ORDINANCE NO. 2010-07 \MDOLlNGER\812627.2 032310-04706083 Report is required under the California Environmental Quality Act ("CEQA") and/or the CEQA Guidelines, and its processing cannot be completed within the above time limit. In such cases, the application shall be diligently processed where feasible to do so and in compliance with the timelines set forth in CEQA or the CEQA Guidelines. The Planning Commission may extend the Use Permit without change to the original conditions of approval, with amended or deleted conditions, or deny the extension. (d) All department or agency inspections, including, but not limited to, health, fire, and building inspections, which are required for the Planning Commission to consider the renewal of a Use Permit shall be completed within the time limits for Planning Commission action provided in this Section. Section 28.59 Use Permit--Revocation (a) Any Use Permit issued pursuant to the provisions of this Section may be revoked in accordance with the procedures set forth below. (b) The Planning Division Manager shall report all facts and information relating to the alleged violation{s) of this Section or of the conditions of the Use Permit to the Planning Commission, who shall set the matter for a public hearing at the first available regularly scheduled meeting of the Planning Commission not less than two (2) weeks nor later than thirty (30) days after receipt of the report. (c) Written notice of the hearing on the proposed Use Permit revocation together with written notification of the specific grounds of complaint against the Permittee shall be personally delivered or sent by certified mail to the address on the Permittee's application for the Use Permit at least ten (10) days prior to the hearing. (d) The Planning Commission shall revoke a Use Permit if it makes one or more of the following findings: (e) The use for which the Use Permit was granted is being exercised in violation of any of the provisions of this Section. (f) The use for which the Use Permit was granted is being exercised contrary to the terms or conditions of such permit. (g) The Permittee gave fraudulent or misleading information in the materials submitted during the application process that tended to enhance the applicant's opportunity for obtaining a Use Permit. 21 ORDINANCE NO. 2010-07 \MDOLlNGER\812627.2 032310-04706083 (h) The use for which the Use Permit was granted is being exercised so as to be detrimental to the public health and safety. (i) The use for which the Use Permit was granted is being exercised so as to constitute a nuisance. 0) The use for which the Use Permit was granted has ceased to exist for one (1) year or more. (k) The use for which the Use Permit was granted is being exercised contrary to or in violation of any City or County, State or Federal Statute, ordinance, regulation, or court order. (I) The Planning Commission, following the termination of the public hearing, shall not later than its next regular meeting unless this time limit is extended by agreement of the parties having an interest in the proceedings, act to revoke the Use Permit or modify the conditions of the Use Permit or determine not to revoke or modify the Use Permit. Section 28.60 Appeal (a) Within ten (10) days after the decision of the Planning Commission on a Use Permit, the Planning Division Manager shall mail a copy of the resolution adopted by the Planning Commission setting forth its findings and decision to the applicant and/or Permittee and to any other person who has filed a written request for such notification (b) Any person may appeal a decision of the Planning Commission made pursuant to this Section to the City Council in writing consistent with the time limit and procedures set forth in Section 51.50 of the Zoning Ordinance. (c) An appeal shall be processed and determined pursuant to Sections 51.50, 51.60 and 51.70 of the Zoning Ordinance. The City Council hearing shall be de novo. In reaching its decision, the City Council shall not be bound by formal rules of evidence. (d) Notice of the City Council's decision pursuant to Section 51.70 shall be mailed to the applicant, and to the appellant if different from the applicant. Section 28.70 Judicial Review (a) After a final decision of the City Council on a Use Permit, the applicant or Permittee or other Person having standing may seek prompt judicial review of such action in any court of competent jurisdiction. The City has adopted 22 ORDINANCE NO. 2010-07 \MDOLlNGER\812627.2 032310-04706083 Code of Civil Procedure Section 1094.6 setting a time limit for seeking review of administrative decisions that are subject to review under Code of Civil Procedure Section 1094.5. Section 28.80 Applicability to Other Regulations The provisions of this Section are not intended to provide exclusive regulation of the regulated adult uses. Such uses must comply with any and all applicable regulations imposed in other articles of the Zoning Ordinance, other City ordinances, the Gilroy City Code and State and Federal law. Section 28.90 Conduct Constituting a Public Nuisance In addition to other remedies for violation of the Zoning Ordinance, the conduct of any Adult Business within the City in violation of any of the terms of this Section is hereby found and declared to be a public nuisance. Section 28.95 Severability If any section, subsection, subdivision, sentence, clause, phrase or word of Ordinance No. 2010-07, establishing this Section 28, is for any reason held to be invalid or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of Ordinance No. 2010- 07, establishing this Section 28. The City Council hereby declares that it would have passed and adopted Ordinance No. 2010-07, establishing this Section 28, and each and all provisions hereof, irrespective of the fact that one or more provisions may be declared invalid or unconstitutional. SECTION II If any section, subsection, subdivision, sentence, clause, phrase or word of this Ordinance is for any reason held to be invalid or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed and adopted this Ordinance, and each and all provisions hereof, irrespective of the fact that one or more provision may be declared invalid or unconstitutional. 1111 1111 1111 23 ORDINANCE NO. 2010-07 \MDOLlNGER\812627.2 032310-04706083 SECTION III This Ordinance shall be effective thirty (30) days from and after the date of the final passage and adoption hereof. The City Clerk shall certify to the passage and adoption of this ordinance and cause the same to be published in the manner prescribed by law. PASSED AND ADOPTED this 3rd day of May, 2010, by the following vote: AYES: COUNCILMEMBERS: ARELLANO, BRACCO, DILLON, GARTMAN, TUCKER, WOODWARD and PINHEIRO NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE APPROVED: 24 ORDINANCE NO. 2010-07 \MDOLlNGER\812627.2 032310-04706083 I, SHA WNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the attached Ordinance No. 2010-07 is an original ordinance, or true and correct copy of a City ordinance, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council held on the 3rd day of May, 2010, at 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 6th day of May, 2010. hawna Freels, C City Clerk of the Ci (Seal)