2013/07/23 City Council Ordinance 858ORDINANCE NO. 858
AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROHNERT
PARK, CALIFORNIA, ESTABLISHING A TEMPORARY MORATORIUM ON AND
PROHIBITING THE ISSUANCE OF PERMITS OR OTHER ENTITLMENTS FOR THE
ESTABLISHMENT, EXPANSION OR RELOCATION OF CHECK CASHING
ESTABLISHMENTS PENDING THE REVIEW AND POSSIBLE AMENDMENT OF
ZONING AND OTHER REGULATIONS TO SUCH BUSINESSES, TO BECOME
EFFECTIVE IMMEDIATELY
THE CITY COUNCIL OF THE CITY OF ROHNERT PARK HEREBY ORDAINS AS FOLLOWS:
SECTION 1. Authority. This Ordinance is adopted pursuant to the provisions set forth in Government
Code Sections 65868 and 36937 and pursuant to other applicable law.
SECTION 2. Findings.
A. Pursuant to Article XI, Section 7 of the California Constitution, the City of Rohnert Park may make and
enforce all regulations and ordinances using its police powers.
B. The stated purpose of the Rohnert Park Zoning Code, codified as Chapter 17 of the Rohnert Park
Municipal Code (RPMC), is to manage future development and growth consistent with the Rohnert Park
General Plan and ensure that development creates harmonious, convenient, workable relationship
among land uses.
C. RPMC Chapter 17 is currently silent regarding check cashing establishments. The City's Zoning Code
provides that "land uses that are not specifically listed are not permitted unless determined by the
Planning and Community Development Director, to be substantially similar to a listed use. (RPMC
section 17.06.030.) Because check cashing establishments are not a type of use which is specifically
listed in the Rohnert Park Municipal Code's zoning regulations, an interested person could apply to
conduct such a use, and claim that it is similar to a listed use. Then, that person could seek to operate
a check cashing establishment in various zoning districts, potentially near sensitive uses.
D. The Graton Resort and Casino project, a casino development with Las Vegas style gambling and a
3,000 slot- machines located adjacent to the city limits ( "Graton Casino "), is expected to open by
November 1, 2013. The Graton Casino will operate 24 hours a day, 7 days a week, and is expected to
attract - on average - approximately 8,000 visitors per day from locations throughout the Bay Area and
beyond.
E. The Graton Casino, like other casinos in California and the United States, is expected to foster growth in
related businesses that cater to the resort and casino clientele. The demand for check cashing
establishments is expected to increase with the opening of the Graton Casino, as patrons may seek
means of converting checks into cash. As a result, the City has received inquiries and anticipates
numerous requests by operators regarding the applicable regulations for check cashing establishments.
F. The RPMC's regulations of check cashing establishments need to be studied to consider the
disbursement of such businesses throughout the zoning districts, proximity to similar businesses and
sensitive uses, and operational regulations such as the hours of operation in relation to public health,
safety and welfare concerns, including the impacts these businesses may have on the surrounding uses
and the community.
G. Check cashing establishments typically serve lower- income, financially vulnerable consumers and these
businesses may engage in predatory financial practices in order to obtain profit from transaction fees.
The City has a legitimate interest in providing reasonable safeguards against crime and economic loss
to such patrons.
See e.g., Cashed Out: Consumers Pay Steep Premium to "Bank" at Check Cashing Outlets, Jean Anne Fox,
Patrick Woodall (2006) http: / /www.consumerfed.orq /pdfs /CFA 2006 Check Cashing Study111506.pdf
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H. The establishment of check cashier or check cashing businesses in any and all locations where
consultative and financial service uses are permitted activity may result in displacement and availability
of full service banking institutions creating a cycle of indebtedness and financial vulnerability for lower -
income citizens.
The establishment of comprehensive regulations for the issuance of permits for check cashing
establishments would serve to reduce the risk of illegal and potential injurious activity.
J. Government Code sections 65858 and 36937 authorize the adoption of an interim urgency ordinance to
protect the public health, safety and welfare, and to prohibit otherwise permitted land uses when those
uses may conflict with land use regulations that the City's legislative bodies are considering, studying or
intending to study within a reasonable time.
K. The City published notice of the public hearing to consider the adoption of this interim urgency
ordinance in accordance with Government Code § 65090, held a public hearing on July 23rd, and
considered the public's testimony.
L. The City Council hereby determines that the RPMC is in need of further review and possible revision to
protect the public against potential negative health, safety, and welfare impacts and to address potential
deficiencies in its Code associated with check cashing establishments. Further, time is required for staff
to study and analyze whether to limit such businesses to certain zoning districts, which districts would
be appropriate for such uses, and what design and operating restrictions and conditions would advance
the public's interest.
M. Failure to adopt this moratorium would impair the orderly and effective implementation of contemplated
amendments to the RPMC, and any further authorization of these check cashing establishments within
the City during the period of the moratorium may be in conflict with or may frustrate the possible
amendments to the RPMC
N. The City Council further finds that this moratorium is a matter of local and City -wide importance and is
not directed towards any particular check cashing establishments that currently seek(s) the issuance of
a permit.
SECTION 3. Imposition of Temporary Moratorium.
A. In accordance with the authority granted the City under Government Code section 65858 and 36837,
and pursuant to the findings stated herein, the City Council (1) hereby finds that there exists a current and
immediate threat to the public health, safety, and welfare requiring this change in the City's permitting provisions
for check cashing establishments, (2) further finds that this ordinance is necessary for the immediate
preservation of the public peace, health and safety, and (3) hereby declares and imposes a temporary
moratorium for the immediate preservation of the public health, safety and welfare as set forth below.
The City orders as follows: For a period of forty -five (45) days from and after the date of adoption of this
Ordinance, no permits (including use permits, conditional use permits, special or temporary permits) or other
applicable use entitlement (including variances, building permits, or business licenses) under Chapters 17 of the
RPMC may be issued for the establishment or operation of a new check cashing establishments within the City,
except as otherwise provided for herein. In addition, no existing check cashing establishments may be
relocated or expanded, whether by means of additional space, construction of new facility, or by reconfiguration.
The moratorium set forth above shall not apply to the renewal of any existing business license for a
check cashing establishment (provided the renewal seeks to maintain the business in the existing location).
B. For purposes of this Ordinance, the terms check cashing establishments shall mean shall mean an
establishment that for compensation engages in the business of cashing checks, warrants, drafts, money orders, or other
commercial paper serving the same purpose. This term shall include an establishment that for compensation engages in the
business of payday loans and cash advances. This term does not include a state or federally chartered bank, savings
association, credit union, or industrial loan company. Further, this term does not include establishments selling consumer
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goods, including consumables, where the cashing of checks or money orders is incidental to the main purpose of the
business.
C. Establishment or operation of unpermitted check cashing establishments in the City of Rohnert Park
shall be a public nuisance per se, enforceable by any applicable law, including but not limited to injunctions,
administrative citations or criminal penalties.
SECTION 4. Legal, Operational and Planning Study. The Planning Department and the City
Attorney's Office are directed to study and analyze issues related to the establishment, permitting, and operation
of check cashing establishments within the City, and their potential impacts on public health, safety and welfare
of the community, the desirability of such check cashing establishments in various zones, and the extent of
regulatory controls, if any, to impose on such check cashing establishments. The City Council directs that all
studies be pursued as expeditiously as practicable. In order to prevent frustration of these studies and the
implementation of new regulations, the public interest, health, safety, and welfare require immediate enactment
of this Ordinance.
SECTION 5. Written Report. Pursuant to Government Code section 65858, staff must prepare for
consideration and issuance by the City Council a written report describing the measures taken to address the
conditions which led to adoption of this Ordinance. The report will be provided to the City Council so that it may
be considered and issued no later than 10 days prior to the expiration of this Ordinance.
SECTION 6. Environmental Review. The City Council finds that this ordinance is not subject to the
California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a
direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not
a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14,
Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly;
rather it prevents changes in the environment pending the completion of the contemplated municipal code
review.
SECTION 7. Severability. If any section, subsection, sentence, clause, or phrase of this ordinance is
for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such
decision will not affect the validity of the remaining portions of this ordinance. The City Council hereby declares
that it would have passed this ordinance and each and every section, subsection, sentence, clause, or phrase
not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be
subsequently declared invalid or unconstitutional.
SECTION 8. Effective Date and Duration. This ordinance is an urgency ordinance enacted under
California Government Code sections 65858(a) and 36937. This urgency ordinance is effective upon adoption
by a four -fifths (4/5) vote of the City Council and will extend for a period of forty -five (45) days from the date of
adoption at which time it will automatically expire unless extended by the City Council in accordance with
California Government Code section 65858.
SECTION 9. Publication. The City Clerk is directed to cause this ordinance to be published in the
manner required by law.
This ordinance was introduced and duly adopted by the City Council of the City of Rohnert Park at the regular
meeting held this 23`d day of July 2013 by a four -fifths vote of the City Council as follows:
AYES: FOUR (4) Councilmembers Aha.notu, Mackenzie, Callinan and Mayor Stafford
NOES: NONE (0)
ABSENT:ONE 1 Councilmember Belforte
ABSTAIN: NONE (0)
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ATTEST:
Pam Stafford `r
J nn #= uergler
Gi y Clerk
APPROVED A
•
TO Fp
Michele t, .° ellyo
City Attorney
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STATE OF CALIFORNIA )
COUNTY OF SONOMA ) ss.
CITY OF ROHNERT PARK )
CITY CLERK'S CERTIFICATION OF
THE ADPOTION OF ORDINANCE
I, JoAnne Buergler, City Clerk of the City of Rohnert Park, do hereby certify that the foregoing
Ordinance No. 858 was introduced and adopted, as an urgency measure pursuant to California Government
Code section 36937 (b), at a regular meeting of the City Council on the 23 day of July, 2013 by the following roll -
call vote:
AYES:
FOUR (4) Councilmembers Ahanotu, Mackenzie, Callinan and Mayor Stafford
NOES: NONE (0)
ABSENT: ONE (1) Councilmember Belforte
ABSTAIN: NONE (0)
oAnne Buergler
ITY CLERK
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