2013/08/27 City Council Ordinance 865ORDINANCE NO. 865
AN INTERIM URGENCY ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF ROHNERT PARK, CALIFORNIA,
EXTENDING THE CITY'S MORATORIUM ON AND
PROHIBITION OF THE ISSUANCE OF PERMITS OR OTHER
ENTITLEMENTS FOR THE ESTABLISHMENT, EXPANSION,
OR RELOCATION OF CHECK CASHING ESTABLISHMENTS
THE CITY COUNCIL OF THE CITY OF ROHNERT PARK ORDAINS AS
FOLLOWS:
SECTION 1. Findings. The City Council finds as follows:
A. On July 23, 2013, pursuant to Government Code Sections 36937 and 65858(b), following
notice and a public hearing, the City Council adopted Urgency Ordinance No. 858
establishing a 45 -day moratorium on the issuance of any new permit, license, approval, or
entitlement pertaining to Check Cashing Establishments (the "Interim Ordinance ").
B. Pursuant to Government Code Section 65858(b), the City may, after notice and a public
hearing, extend the Interim Ordinance for an additional period of up to 22 months and 15
days.
C. Based on substantial evidence in the record, the Development Services Manager has
recommended that the approval or issuance of permits for Check Cashing Establishments
presents an immediate threat to and specific adverse impact upon the public health, safety
and welfare of the community.
D. On August 27, 2013, the City Council held a duly noticed public hearing to consider
extending Ordinance No. 858 for an additional twenty two (22) months and fifteen (15)
days from the date Ordinance No. 858 expires.
E. The City Council considered all of the written and oral testimony offered at the duly
noticed public hearing held on August 27, 2013, concerning whether to extend Ordinance
No. 858.
F. The factual basis for extending the Interim Ordinance includes the following:
1. The recitals, provisions, and findings made in Ordinance No. 858 are hereby
reaffirmed, readopted, and incorporated by reference as though they were fully restated
herein.
2. The City desires to further study the potential effects of Check Cashing
Establishments on the public health, safety, and welfare, in order to determine whether
reasonable conditions, such as those imposed by neighboring jurisdictions, should be
placed on Check Cashing Establishments in the City.
3. City staff is reviewing RPMC Chapter 17 as well as the provisions of neighboring
jurisdictions. However, as provided for in the staff report, which is incorporated by
reference, the City Council finds that staff needs additional time to study, review and
make an informed recommendation regarding possible amendments to RPMC that would
impose reasonable regulations on Check Cashing Establishments.
4. Once a draft ordinance is prepared, that legislation must first be reviewed by the
Planning Commission and City Council and the public at two meetings and, if adopted,
the ordinance would not go into effect for an additional 30 -days.
5. In order to avoid a lapse in the moratorium, it is necessary that the Interim
Ordinance be extended.
6. Until such time as the proposed amended regulations are adopted and effective,
there is a significant risk of Check Cashing Establishments engaging in predatory
financial practices against their patrons who are typically lower- income, financially
vulnerable consumers and the City has a legitimate interest in providing reasonable
safeguards against crime and economic loss to such patrons.
7. Check Cashing Establishments are businesses that may locate in places where
consultative and financial service uses are a permitted activity, potentially resulting in
displacement and /or limited availability of full service banking institutions, which could
create a cycle of indebtedness and financial vulnerability for lower- income citizens.
8. The establishment of new reasonable standards for the issuance of permits for
Check Cashing Establishments and regulations on the operation of Check Cashing
Establishments will serve to reduce the risk of crime and economic loss.
9. The absence of this ordinance would create a serious threat to the orderly and
effective implementation of any RPMC amendments that may be adopted in that the
issuance of permits to Check Cashing Establishments within the City may be in conflict
with or frustrate the contemplated RPMC amendments.
G. Pursuant to Government Code Section 65858(d), the City has issued a report relative to
the steps taken to alleviate the conditions that necessitated the adoption of the Interim
Ordinance, which report is incorporated by this reference.
H. The City Council finds that there is a current and immediate threat to the public health,
safety, and welfare based on the above findings and, upon that basis, has determined that
an extension of the moratorium prohibiting the issuance of new permits for Check
Cashing Establishments is warranted.
SECTION 2. Extension of Moratorium. The City Council orders that, pursuant to the
authority granted to the City Council by California Government Code Section 65858 to protect
the health, safety, and general welfare of the residents of the City of Rohnert Park, the City
Council hereby extends Ordinance No. 858 which established a moratorium on Check Cashing
Establishments as follows:
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A. 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
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 term Check Cashing Establishments 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
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 3. Legal, Operational and Planning Study. The Planning Department and the City
Attorney's Office are directed to continue to study and analyze issues related to the
establishment, permitting, and operation within the City of Check Cashing Establishments, 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 4. 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 5. 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
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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 6. Effective Date and Duration. This ordinance is an urgency ordinance enacted
under California Government Code section 65858(b). This urgency ordinance is effective
immediately upon adoption by a four -fifths (4/5) vote of the City Council and, unless terminated
sooner by the City Council, will extend for a period of 22 months and 15 days from the date of
adoption at which time it will automatically expire.
SECTION 7. Publication. The City Clerk is directed to cause this ordinance to be published in
the manner required by law.
PASSED, APPROVED AND ADOPTED this 27th day of August, 2013 by the
following vote:
AYES: Five (5 ) Council. Members Ahanotu, Belforte, Mackenzie, Callinan and Mayor
NOES: None (0 ) Stafford
ABSENT: None (0 )
ABSTAIN: None (0 )
ATTEST:
JoAnne Bd. gler
City Clerk
Michele Marchetta Kenyon
City Attorney
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Pam Stafford, Mayo
STATE OF CALIFORNIA
COUNTY OF SONOMA
CITY OF ROHNERT PARK
) ss.
CITY CLERK'S CERTIFICATION OF
THE ADOPTION OF ORDINANCE
I, JoAnne Buergler, City Clerk of the City of Rohnert Park, do hereby certify that the foregoing
Ordinance No. 865 was adopted at a regular meeting of the City Council on the 27th day of August, 2013
by the following roll -call vote:
AYES: Five (5) Council Members Ahanotu, Belforte, Mackenzie, Callinan and Mayor Stafford
NOES: None (0)
ABSENT: None (0)
ABSTAIN: None (0)
ti-,— e kii
JoAnne Buergler
CITY CLERK
Ord. 865
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