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ORD 1277 08/27/2019 O F 49 A, C� O V ' O r-e„XP's "City of Choice” ORDINANCE NO. a-7 AN ORDINANCE OF THE CITY OF CIBOLO, TEXAS AUTHORIZING EXTENDED SALE OF ALCOHOL HOURS FOR CURRENT AND FUTURE ESTABLISHMENTS IN THE CITY OF CIBOLO CONDITIONED ON CRITERIA IN "LATE HOURS PERMIT"; REQUIRING THAT NON-ALCOHOL SALES OF ESTABLISHMENTS WITH EXTENDED SALE OF ALCOHOL HOURS EXCEED DAILY ALCOHOL SALES; REQUIRING NON-ALCOHOL SALES OF ESTABLISHMENTS WITH EXTENDED SALE OF ALCOHOL HOURS TO CONTINUE IN EXTENDED HOURS; ESTABLISHING A FEE; PROVIDING FOR APPLICATION, PERMIT, AND COMPLIANCE PROCEDURE; PROVIDING FOR A PENALTY FOR THE VIOLATION OF THIS ORDINANCE; PROVIDING FOR SEVERABILITY; PROVIDING FOR AN EFFECTIVE DATE WHEREAS,the City Council of the City of Cibolo,Texas(herein the"City")desires to promote and incentivize economic development through adoption of extended hours for the sale of alcohol; and WHEREAS, the City is currently a `standard hours area' for the sale of alcohol under Texas Alcoholic Beverage Code Section 105.06(a)(2), allowing permit holders to sell such alcoholic beverages at the times designated by Section 105.03(b)and Section 105.05(b); and WHEREAS, the City Council is the governing body of the incorporated City of Cibolo and, as such, can adopt the extended hours of sale provided in Section 105.03 and Section 105.05 of the Texas Alcoholic Beverage Code by ordinance,as authorized by Texas Alcoholic Beverage Code, Chapter 105; and WHEREAS, the City Council finds that extending establishments sale of alcohol hours, contingent on the requirements set forth in this Ordinance, will reasonably incentivize future development in the City, and WHEREAS, a permit system is deemed most appropriate means of regulations which requires the assessment of fees to offset the cost of enforcing these more local standards; and WHEREAS,the City Council finds that it is in the best interest of the City to approve the extended hours for the sale of alcohol with conditions; 1 7362/1#261504v2 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CIBOLO,TEXAS: SECTION 1.AMENDMENT. Chapter 6 (Alcoholic Beverages)is hereby amended to reflect the adoption of this Ordinance. SECTION 2.ADOPTION OF EXTENDED HOURS BY CITY.All establishments in the City limits and in compliance with the conditions of the City late hours permit will have their application for extended hours approved by the City Secretary. The late hours permit holder may thereafter legally offer alcohol for sale between midnight and 2 a.m. on any day, as prescribed by Texas Alcoholic Beverage Code Sections 105.03 and 105.05. SECTION 3. APPLICATION FOR LATE HOURS PERMITS. Establishments seeking extended sale of alcohol hours must file an application for a permit with the Texas Alcoholic Beverage Commission and with the Office of the City Secretary.Applications for late hour permits must be approved by the City Secretary before an establishment can observe extended hours in the City.An establishment seeking a permit from the City must pay a fee of one-half of the fee charged by the State for a mixed beverage late hours permit, except when said fee is waived according to the provisions of the Texas Alcoholic Beverage Code. (a) An application for a permit must include, but may not be limited to the following provisions: name, title, address, and telephone number of the authorized representative of the applicant; (b) The application must include a sworn affidavit demonstrating that: (1) at least 51%of the establishment's gross daily receipts will be non-alcohol; and (2) the establishment will continue offering for sale food or its other non-alcohol commodities or services for the duration of the extended alcohol service hours. (c) The City Secretary shall make a determination on an application for a permit on or before the 30th day after the date the application was filed. SECTION 4. APPEALS PROCESS. An applicant or permittee whose application is denied or permit is revoked by the City of Cibolo City Secretary under the provisions-of this article may appeal the City Secretary's decision to City Council. SECTION 5. CITY LATE HOURS PERMIT.The City Secretary may not grant a permit unless the applicant has complied with the requirements of the Application. Continued operation of late hours is conditioned on compliance with the statements in the affidavit for the entirety of the permit period. (a) The permit must show that the establishment may: 2 7362/1#261504v2 (1) Legally offer alcohol for sale between midnight and 2 a.m. any day, as prescribed by Texas Alcoholic Beverage Code Sections 105.03 and 105.05; (2) Conditioned on: i. at least 51% of the establishment's gross daily receipts being non-alcohol; and ii. the establishment continuing to offering for sale food or its other non- alcohol commodities or services for the duration of the extended alcohol service hours; and (3) the time frame for which the permit is valid. (b) Compliance procedure. The permit holder shall fully cooperate with City officials, the Texas Alcoholic Beverage Commission,and local law enforcement in their efforts deemed reasonably necessary to ensure compliance with the conditions of the permit. Compliance may be assessed by, but is not limited to, the following mechanisms: random audits, checking receipts upon yearly application, and reporting by citizens. (c) Expiration. The permit will expire one year from the date on which it is granted. The establishment must apply for the permit each year to maintain extended hours. The establishment's compliance with the conditions of the permit will be formally re-evaluated with each yearly application. (d) Permit Revocation. If a permit holder fails to comply with this article or applicable state law,the City of Cibolo may revoke a permit issued under this article for a period of six(6) months. SECTION 6. PENALTY. Any person, firm, association, delegation or group who violates any provision of this article shall be guilty of a misdemeanor and, upon conviction, shall be punished according to the general penalties described in Section 1-13. Each day any violation continues to exist shall constitute a separate offense SECTION 7. INCORPORATION OF RECITALS. The facts and recitations contained in the preamble of this Ordinance are hereby found and declared to be true and correct factual and legislative findings of the City, and are fully incorporated into the body of this ordinance. SECTION 8. NOTICE OF DETERMINATION. It is hereby found, determined and declared that a sufficient notice of the date, hour, place, and subject of the meeting of the City Council at which this Ordinance was adopted was posted at a place convenient and readily accessible at all times as required by the Texas Open Meetings Act, Section 551.001, et seq. of the Texas Government Code. SECTION 9. SEVERABILITY.If any section,paragraph,clause or provision of this Ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of 3 7362/1#261504v2 such section, paragraph, clause, or provision shall not affect any of the remaining provisions of this Ordinance. SECTION10.EFFECTIVE DATE. This Ordinance shall take effect immediately from and after its passage by the City Council of the City of Cibolo. PASSED, APPROVED, AND ADOPTED THIS 27 DAY OF AUGUST,2019. CITY OF CIBOLO Stosh Boy ,' Mayor ATTEST: /'�- - Peggy Cimics, TRMC City Secretary 4 7362/1#261504v2