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that the service of beer and wine is an integral part of the service offered to the customers; and that the variance would not adversely affect the General Plan of the City. Judy June Susak, owner of the sandwich shop, stated that she has two other such shops; that the customers usually prefer to have ~he opportunity to purchase beer or wine with a sandwich; and that there is no parking for outside customers. There being no further speakers, Mayor Evans closed the public hearing. On the motion of Councilman Ortiz, seconded by Councilman Brandt, carried 5:2, with Councilman Yamamoto and Mayor Evans dissenting, the Negative Declaration was approved and filed, and the City Attorney was directed to prepare a resolution granting Variance Application No. 78-21 and affirming the decision of the Planning Commission, subject to a two-year review. CA 13.3A PUBLIC HEARING - CUP 78-9 Mayor Evans announced 2760 S. HARBOR BLVD. that this was the time NO ACTION (DENIED) and place for the public hearing of Negative Declaration and Conditional Use Permit 78-9 to allow retail sales of linoleum, carpet and drapery material at 2760 South Harbor Boulevard, Units D and E, in the Mi District. Upon verification that the subject property is owned by Pruden- tial Life Insurance Company, Councilman Yamamoto left the hearing, stating that he is the employee of Prudential Life Insurance Company, and his association may present a conflict of interest. Planning Director Charles Zimmerman stated that the Applicant proposes to use 4,400 square feet in a new industrial complex for retail sales of linoleum, carpet and drapery material; that a conditional use permit can be approved for retail sales when those sales are in conjunction with the production on the site; no conditional use permit has been approved for retail sales along this Harbor Boulevard site; and that in this particu- lar instance the Planning Commission determined that the conditional use permit would not be detrimental to the industrial character of the area. Bill Towfigh, 3213 South Birch, Applicant, stated that he does very little selling over the counter; that generally he visits the customer and takes the order at the job site; that he deals with commercial establishments such as Knott's Berry Farm and Disneyland; and that he would use 2/3 of the area for a ware- house. B. Davenport, Prudential Life Insurance Company, owner of the building, stated that they had investigated the business before allowing it to come into the complex; and that the operator of the business has very little need for parking spaces. There being no further speakers, Mayor Evans closed the public hearing. The motion to approve and file the Negative Declaration and to direct the City Attorney to prepare a resolution granting the Conditional Use Permit, and affirming the decision of the Plan- ning Commission, made by Councilman Brandt, seconded by Council- man Ortiz, failed to carry on a 3:3 vote, woth Councilmen Ward and Bricken and Mayor Evans dissenting. The dissenting Council- men noted that downtown Santa Aha is the best example of lack of adherence to the established zone;,and that although difficult, strict zoning regulations must be maintained to avoid deteriora- tion of an area. CITY COUNCIL MINUTES 245 JUNE 19, 1978