CITY OF CARMEL-BY-THE-SEA

Planning Commission Report

April 12, 2017

To: Chair Reimers 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) subject to the attached findings and conditions

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 restaurant located within the interior of the Carmel Plaza named Carmel
Coffee and Cocoa Bar, which has operated in the City since 2006. This restaurant provides counter
service and is classified as a specialty restaurant. On November 12, 2014, the restaurant was
approved for an exterior and interior remodel, which included the expansion from 784 square feet
to 1,297 square feet and increase from 12 to 22 seats.

It has come to the Citys attention that Carmel Coffee and Cocoa Bar is in violation of its Use Permit
(UP 14-18), as it provides a broad range of food items that are not permitted under the definition
of a specialty restaurant. According to CMC Section 17.68.030, specialty restaurants are defined
as: Restaurants providing a limited range of food products for immediate consumption on the site.
These restaurants provide seating but are not required to provide table service or menus. Specialty
restaurants provide, as a primary use, two or fewer of the following lines of foods: pastries and

139
UP 17-80 (Carmel Coffee and Cocoa Bar)
April 12, 2017
Staff Report
Page 2

doughnuts, frozen desserts, candy and nuts, juices, and coffee and tea. Furthermore, CMC
17.14.040.I states that in specialty restaurants the sales of soup, salads and sandwiches may be
allowed in an amount up to 10 percent of sales. Carmel Coffee and Cocoa Bar is out of compliance
with the provision that limits the sale of food items to soups, salads and sandwiches at a maximum
of 10 percent. As indicated by the restaurants name, it is likely that this business was at one time
primarily a coffee shop, but morphed into a full-line restaurant over the years. In order to address
this compliance issue, the applicant is requesting to amend its business operation and be issued a
permit to become a full-line restaurant.

Staff Analysis:

Full-Line Restaurant: CMC 17.68.030 classifies a full-line restaurant as: Restaurants, Full Line.
Restaurants providing a full line of prepared food and drinks using nondisposable plates, glasses and
utensils for immediate consumption on the site. These restaurants provide table service to patrons
of all ages who pay after eating. Takeout service may be provided. Furthermore, CMC 17.14.040.I
states that customers shall be provided with individual menus while seated at a table or counter.

The applicant has applied for a new Use Permit (UP 17-80) and is proposing to amend its operation
so that it meets the requirements of a full-line restaurant; specifically, the applicant will now be
required to provide patrons with a menu while seated and accept payment after eating. The
applicant is requesting to still have the ability to sell beverages and take-out orders form the
service counter. Take-out orders are permitted under the Municipal Code. The Planning
Commission should consider whether it is acceptable for the restaurant to still allow beverage
sales at the service counter, and furthermore, whether the service counter should be reduced in
size in accordance with the change in restaurant classification. If the Commission decides that the
counter should be reduced it could continue the item with a request for changes to the floor
layout.

It should be noted that at the request of staff, the applicant has already modified the restaurant
operation a few months ago to comply with the requirements of a full-line restaurant. However, it
has been brought to staffs attention by several individuals that the business may not be operating
in total compliance with the full-line restaurant operational requirements. Nevertheless, staff
supports the applicants request to modify its business operation in order to come into compliance
and anticipates that the applicant will fully comply following the issuance of this new use permit.

140
UP 17-80 (Carmel Coffee and Cocoa Bar)
April 12, 2017
Staff Report
Page 3

Interior Signage: CMC 17.70.020 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. CMC 17.40.040 allows a maximum of 6 square feet of signage for sings
that are 5 feet or more beyond the storefront.

The sidewall includes photographs of food items that are for sale (See Attachment D). In staffs
opinion, these photographs should be defined as signage and exceed the allowed area of 6 square
feet. A condition has been drafted requiring that the interior signage be reduced to 6 square feet.
Staff notes that the photographs could be scaled down or as an alternative the applicant could
have a menu/catalog at the front counter that with photographs of the food items.

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 Findings for Approval

Attachment B Conditions of Approval
Attachment C Project Description
Attachment D Sidewall Signage Photographs
Attachment E Approved Floor Plan

141
Attachment A 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.

142
UP 17-80 (Carmel Coffee and Cocoa Bar)
April 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.

143
Attachment B 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.

144
UP 14-18 (Carmel Coffee)
November 12, 2014
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.

145
UP 14-18 (Carmel Coffee)
November 12, 2014
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

146
Attachment C - Project Description

Carmel Coffee and Cocoa Bar

831.238.6478 miracoffee1@gmail.com 122 Carmel Center Plaza, Courtyard Level, Carmel, CA 93923

November 21, 2016

Mr. Marc Wiener

Director Building and Planning
City of Carmel-by-the-Sea
P.O.B. CC
Carmel-by-the-Sea, CA 93921

Dear Marc,

Thank you for your meeting last Thursday November 17. We look forward to participating
in the process of revising the Municipal Code to include Counter Service category that is
now underway with the City.

Per your request, we will change our operations of our coffeeshop to provide a full service
restaurant experience. We will seat customers prior to ordering food and drinks, provide
menus of our food and drinks, continue to bring food to tables and provide customer
checks at the end of meals. We will continue to provide walk-up counter service for coffee
and pastries and continue to provide all of our food and drink items To Go.

We will watch for and plan to attend the next workshop on the Counter Service revision to
the City Municipal Code.

Sincerely yours,

Mira Porges Matthew Porges

147
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