CITY OF CARMEL-BY-THE-SEA

Planning Commission Report

July 12, 2017

To: Chair Goodhue and Planning Commissioners

From: Marc Wiener, AICP, Community Planning and Building Director

Subject: Consideration of a Use Permit (UP 17-80) application to convert an existing

restaurant located in the Central Commercial (CC) Zoning District from a
specialty restaurant to a full-line restaurant

Recommendation:

Approve the Use Permit (UP 17-80) application and accept the interior display.

Application: UP 17-80 APN: 010-086-006

Location: Southeast corner of Ocean Avenue and Mission Street (Carmel Plaza)
Block: 78 Lots: All
Applicant: Mira and Mathew Porgess (Carmel Coffee and Cocoa Bar)
Property Owner: OWRF Carmel, LLC

Background and Project Description:

The subject business is a specialty restaurant located within the interior of the Carmel Plaza named
Carmel Coffee and Cocoa Bar, which has operated in the City since 2006. It had come to the Citys
attention that Carmel Coffee and Cocoa Bar was not operating in compliance with the Citys
definition of a specialty restaurant and was in violation of its Use Permit (UP 14-18). In order to
remedy the situation, the applicant applied for a new Use Permit (UP 17-80) to convert the use
from a specialty restaurant to a full-line restaurant. As a full-line restaurant, the applicant could
still sell its current range of food items, but would be required to provide table service and menus,
and could only accept counter orders for take-out items. The Planning Commission reviewed this
application on April 12, 2017, and accepted the concept of changing the restaurant classification,
but continued the application so that the applicant could address the issues that were raised with
the interior display. It should be noted that the applicant has been operating in compliance with
the full-line restaurant standards, but is still in the process of developing a menu.

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UP 17-80 (Carmel Coffee and Cocoa Bar)
July 12, 2017
Staff Report
Page 2

With regard to the interior display, staff had noted that according to the Citys Municipal Code, the
photographs and perhaps the wall menu should be defined as signage, and that the business
exceeds the 6-square foot allowance for interior signage (CMC 17.40.040). Since the last Planning
Commission meeting, staff has further evaluated the Municipal Code and identified a section that
would potentially exempt the photographs and wall menu from being defined as interior signage.
The applicant has requested that the Planning Commission reconsider the issue prior to making
any final changes to the business.

Staff Analysis:

Interior Signage: At the April meeting, staff had determined that the photographs, and perhaps
wall menu, should be defined as signage based on City Municipal Code Section 17.70.020, which
defines a sign as:

Any object, structure, symbol, banner, streamer, letter, number, emblem, logo,
color, display, or light, or any combination thereof which is intended to or does
identify, attract attention to, advertise, announce, or communicate information of
any kind to the public.

This code section provides a very broad definition of signage and indicates that essentially any type
of display used to communicate information should be defined as a sign. One issue with using
such a broad definition is that almost any type of non-merchandise display in the store could be
classified as signage, which makes it difficult for the City to consistently enforce the interior sign
regulations. The applicant has pointed out that several restaurants in town have food displays in
the front window, as well as interior wall menus, which could meet the definition of signage. The
applicant has also pointed out that the majority of the real estate businesses have photographs of
properties for sale on their walls and windows.

Since the Commission last reviewed this item, staff has identified Municipal Code Section
17.14.030.B, which provides the following more specific definition of interior business signs as:

An interior business sign which is located within the interior of a business, visible
from exterior areas accessible to pedestrians, and includes the business name or an
identifying portion of the business name. Business names and logos on merchandise
are not considered signs.

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UP 17-80 (Carmel Coffee and Cocoa Bar)
July 12, 2017
Staff Report
Page 3

This code section includes a more focused definition of interior signage and indicates that the
business name must be included in order to be considered a sign. Of important note is that the
Municipal Code (CMC 17.14.040.A) also identifies that general sale or closing-out sale signs must
adhere to the interior sign regulations. Staff recommends that the Planning Commission use this
more focused definition of interior signage, which preclude signs bearing the business name or for-
sale signs, but would allow for items such as real estate photographs, front-window food displays,
food photographs, and interior wall menus. Using the second definition provides clearer guidance
with regard to interior signage and allows for more consistent enforcement by the City.

Alternatives: Staff is recommending that the Planning Commission issue the final approval of the
Use Permit (UP 17-80) and use the Municipal Code interpretation that exempts the food
photographs and interior wall menus from being classified as interior signage. However, if the
Commission determines that the photographs and/or wall menu should be defined as signage,
then it many continue the application with a requirement that the interior display be revised to
comply with City regulations.

Environmental Review: The application qualifies for a Class 3 Categorical Exemption from the
provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15303 of the
State CEQA Guidelines. Class 3 exemptions include projects involving limited new construction
projects and conversion of small structures.

ATTACHMENTS:

Attachment A Food Photographs

Attachment B Findings for Approval
Attachment C Conditions of Approval
Attachment D Pertinent Signage Code Sections

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Attachment A Food Photographs

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107
Attachment B Findings for Decision

CITY OF CARMEL-BY-THE-SEA

DEPARTMENT OF COMMUNITY PLANNING AND BUILDING

FINDINGS FOR DECISION

UP 17-80
OWRF Carmel, LLC (Carmel Coffee and Cocoa Bar)
Southeast Corner of Ocean Avenue and Mission St. (Carmel Plaza)
Block 78; Lots: All
APN: 010-086-006

CONSIDERATION:
Consideration of a Use Permit (UP 17-80) application to convert an existing restaurant located
in the Central Commercial (CC) Zoning District from a specialty restaurant to a full-line
restaurant

FINDINGS OF FACT:

1. The project site is located on the southeast corner of Ocean and Mission in the Central
Commercial (CC) Zoning District.

2. On November 12, 2014, the applicant was approved to remodel and enlarge an
existing specialty restaurant at the subject location named Carmel Coffee and Cocoa
Bar.

3. The Carmel Coffee and Cocoa Bar is out of compliance with the Citys definition of a
specialty restaurant and to correct this violation has submitted a use permit application
proposing amend the business operation to become a full-line restaurant.

4. Carmel Municipal Code Section 17.14 Schedule II-B establishes that full-line restaurants
are a conditionally permitted use and are subject to Planning Commission approval.
This Use Permit (UP 17-80) supersedes all previous use permits at this location.

5. The application is exempt from the requirements of the California Environmental

Quality Act (Class 3 New Construction or Conversion of Small Structures).

FINDINGS FOR DECISION:

5. The proposed use, as conditioned, is not in conflict with the General Plan.

6. The proposed use, as conditioned, will comply with all zoning standards applicable to
the use and zoning district.

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UP 17-80 (Carmel Coffee and Cocoa Bar)
July 12, 2017
Findings for Approval
Page 2

7. The granting of the Use Permit will not set a precedent for the approval of similar uses
whose incremental effect will be detrimental to the City, or will be in conflict with the
General Plan.

8. The proposed use will not make excessive demands on the provision of public services,
including water supply, sewer capacity, energy supply, communication facilities, police
protection, and fire protection.

9. The proposed use will not be injurious to public health, safety or welfare.

10. The proposed use will be compatible with surrounding land uses and will not conflict
with the purpose established for the district within which it will be located.

11. The proposed use will not generate adverse impacts affecting health, safety, or welfare
of neighboring properties or uses.

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Attachment C Conditions of Approval

CITY OF CARMEL-BY-THE-SEA

DEPARTMENT OF COMMUNITY PLANNING AND BUILDING

CONDITIONS OF APPROVAL

UP 17-80
OWRF Carmel, LLC (Carmel Coffee)
Southeast Corner of Ocean Avenue and Mission Street
Block: 78; Lots: All
APN: 010-086-006

PROJECT DESCRIPTION:
Consideration of a Use Permit (UP 17-80) application to convert an existing restaurant located in
the Central Commercial (CC) Zoning District from a specialty restaurant to a full-line restaurant

AUTHORIZATION:

1. This Use Permit (UP 17-80) approval authorizes the conversion of the restaurant from a
specialty restaurant to a full-line restaurant. This Use Permit (UP 17-80) supersedes the
original Use Permit (UP 14-18) for this restaurant (Carmel Coffee and Cocoa Bar).

2. A maximum of 22 seats is permitted. The customer seating area must be open to patron
use during all hours of operation and the use must be managed to encourage on-premises
consumption of food products.

3. The allowed days and hours of operation are from 7:00 a.m. to 6:00 p.m. Monday through
Saturday and from 8:00 a.m. to 5:00 p.m. on Sunday.

4. Customers shall be provided with individual menus while seated at a table or counter and
shall pay for the meal after eating. Beverages and take-out orders may be purchased at
the counter.

STANDARD CONDITIONS:

5. Any sale of alcoholic beverages shall be subordinate to this primary use.

6. The restaurant shall not operate as a Drive-in, Formula Food or Fast Food establishment
as defined in CMC Section 17.70.

7. Substantially all foods from the standard menu shall be available for purchase during the
hours that alcoholic beverages are being served except for the first hour and the last hour
of each business day.

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UP 17-80 (Carmel Coffee)
July 12, 2017
Conditions of Approval
Page 2

8. Food sold for consumption off the premises shall be incidental to the primary use. Such
food shall be placed in covered containers or wrapping.

9. The sale of nonfood merchandise that is directly related to the use may be allowed when
determined to be incidental to the primary use. The display of nonfood merchandise is
prohibited.

10. Adequate facilities shall be provided on the site for the closed storage of trash and garbage
generated by the use. The on-site storage shall be designed so that the area can be
cleaned and the refuse removed without creating a public nuisance and without being
placed on the sidewalks or other public ways. If the method of cooking used will generate
hot ashes, a storage facility and disposal method shall first be approved by the Fire
Department.

11. At least one restroom shall be available for use by both sexes within, or conveniently
adjacent to, the specific business premises and on the same property on which the use is
located. This restroom shall comply with all provisions of the State Uniform Building and
Plumbing Codes as to the required size, location and accessibility standards, and shall be
available for use by both the employees and patrons of the business.

12. Maximum seating capacity shall not exceed the standards in the State Uniform Building
and Fire Codes, the number of seats approved by the Planning Commission through public
review, or the number of seats in the previous business, whichever is less. The seating
capacity shall be posted on the premises. This limit is a maximum and may be reduced by
the Building Official to meet the State Uniform Building and Fire Codes.

13. Except as provided in CMC Sections 8.68.070 and 8.68.080, no restaurant shall provide
prepared food to its customers in CFC-processed food packaging or polystyrene foam food
packaging, nor shall any restaurant purchase, obtain, keep, sell, distribute, provide to
customers or otherwise use in its business any CFC-processed food packaging or
polystyrene foam food packaging. The restaurant shall comply with all other requirements
in CMC Section 8.68.

14. The use shall be conducted in a manner consistent with the presentations and statements
submitted in the application and at the public hearing, and any change in the use which
would alter the findings or conditions adopted as part of this permit shall require approval
of a new Use Permit by the City.

15. This Use Permit shall become void and in no further force or effect if the use is not initiated
within six months of the issuance of the Certificate of Occupancy from the Building Official.

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UP 17-80 (Carmel Coffee)
July 12, 2017
Conditions of Approval
Page 3

16. Violations of the terms of this Use Permit or other ordinances of the City may constitute
grounds for revocation of this Use Permit and the associated business license by the
Planning Commission.

17. A summary sheet of basic Use Permit requirements (allowed days, allowed hours, special
mitigations) shall be posted on the premises or shall be available upon request by any
enforcement officer of the City.

18. The applicant agrees, at its sole expense, to defend, indemnify, and hold harmless the City,
its public officials, officers, employees, and assigns, from any liability; and shall reimburse
the City for any expense incurred, resulting from, or in connection with any project
approvals. This includes any appeal, claim, suit, or other legal proceeding, to attack, set
aside, void, or annul any project approval. The City shall promptly notify the applicant of
any legal proceeding, and shall cooperate fully in the defense. The City may, at its sole
discretion, participate in any such legal action, but participation shall not relieve the
applicant of any obligation under this condition. Should any party bring any legal action in
connection with this project, the Superior Court of the County of Monterey, California,
shall be the situs and have jurisdiction for the resolution of all such actions by the parties
hereto.

*Acknowledgement and acceptance of conditions of approval.

_____________________ _________________ ___________

Applicant Signature Printed Name Date

______________________ _________________ ___________

Property Owner Signature Printed Name Date

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Attachment D - Pertinent Code Sections

17.40.030 Business Signs.

B. Types of Business Signs. There are four types of business signs that are allowed in the commercial district:

1. An exterior wall business sign which is attached to a wall, fascia or window and only one side of the

sign is visible.

2. An exterior hanging business sign which hangs from a bracket mounted to a wall or overhang. Both

sides of the sign are typically visible to pedestrians and contain identical designs.

3. An exterior monument business sign which is freestanding and separate from adjacent buildings. This

type of sign is typically mounted on a post or a solid base.

4. An interior business sign which is located within the interior of a business, visible from exterior areas

accessible to pedestrians, and includes the business name or an identifying portion of the business

name. Business names and logos on merchandise are not considered signs.

17.40.040 Interior Signs.

A. Interior Signs. Those interior signs that are visible from exterior areas accessible to pedestrians and which

meet the following standards are allowed without a permit. All interior signs shall be designed and lettered in a

professional and attractive manner. Interior signs that do not meet these standards are prohibited.

Standards for Permitted Interior Signs

Maximum Size Maximum Aggregate

Number (Each Sign) Area of Signage Maximum Letter Size Information

Affixed to Six N/A 100 square inches One inch Closed/open,

a window hours of

operation, will

return, alarm, no

food or drink,

credit card (see

note 2)

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0' 5' Unlimited One square foot Two square feet One inch Unlimited

from the content

storefront Business

name or

identifying part of

the business

name are limited

in area to 10% or

less area of each

sign

5' or Unlimited N/A Six square feet Three inches Unlimited

more beyond content

the storefront Business

name or

identifying part of

the business

name are limited

in area to 10% or

less of each sign

Notes:

1. Signs advertising general sales or closing-out sales/going-out-of-business sales shall adhere to the

standards for permitted interior signs. Interior signs advertising closing-out sales/going-out-of-business sales

may be displayed for no more than 45 days pursuant to CMC 5.20.030.

2. Credit card signs shall not exceed two square inches per sign and are exempt from the maximum aggregate

area standards applicable to signs affixed to windows. Alarm system identification signs 144 square inches or

smaller in sizes are exempt from the maximum aggregate area standards applicable to signs affixed to

windows.

(Ord. 2005-02 2, 2005; Ord. 2004-02 1, 2004; Ord. 2004-01 1, 2004).

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17.70.020 Definitions.

Sign. Any object, structure, symbol, banner, streamer, letter, number, emblem, logo, color, display, or light, or

any combination thereof which is intended to or does identify, attract attention to, advertise, announce, or

communicate information of any kind to the public.

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