Sacramento Municipal Code Ch. 5.08 Alcoholic Beverage Licenses

The purpose of this chapter is to add guidelines, criteria and procedures for the issuance or denial of letters of public convenience or necessity requested from the city pursuant to Business and Professions Code Sections 23817.7 and 23958.4, as written or hereafter amended. On January 1, 1995, Business and Professions Code Section 23817.5 became effective and provides for a moratorium on the issuance of licenses for retail off-sale beer or wine to be issued by the state in areas which are overconcentrated as defined by that statute. Business and Professions Code Section 23817.7 provides certain exceptions to the moratorium imposed in Section 23817.5, where the city determines the public convenience or necessity would be served by issuance of a license for the sale of alcoholic beverages. Business and Professions Code Section 23958 provides that new licenses or transfers of licenses shall be denied if issuance of the license would tend to create a crime problem or if issuance would result in undue concentration of licenses except as provided in Section 23958.4.

Business and Professions Code Section 23958.4 provides exceptions permitting the issuance of an original license or transfer of a license to sell alcoholic beverages in an area which is overconcentrated or where a crime problem exists, as provided in the statute. Applicants for certain licenses, as provided in the statute, including nonretail licenses, retail on-sale at a bona fide eating place, licenses issued to hotels, beer manufacturers and wine growers, may provide a letter of public convenience or necessity directly to the state Department of Alcoholic Beverage Control. All other potential licensees must obtain a letter of public convenience or necessity from the local governing body. This section is designed to address cases in which the city may issue a letter of public convenience or necessity pursuant to provisions of the Business and Professions Code.

The city council finds and determines that overconcentration of certain establishments selling alcoholic beverages poses a serious threat to the health, safety, welfare, security, economic viability and stability of the city. The city council also recognizes that certain establishments with licenses to sell alcoholic beverages do not detract from neighborhoods and may, when properly operated, enhance the stability and economic viability of a community. There is no single formula for determining whether public convenience or necessity are served by an additional use in an overconcentrated area. Accordingly, the guidelines, standards and procedures adopted herein for the issuance of letters of public convenience or necessity are designed to achieve the following goals:

A. To permit the issuance of licenses for certain types of establishments which sell alcoholic beverages and which do not pose a threat to the public health, safety or welfare of the city and where issuance of a license would serve the public convenience or necessity;

B. To permit an applicant for a license to meet the criteria set forth in the Business and Professions Code where the issuance of licenses for certain types of establishments will contribute, in a positive way, to the economic viability, stability, convenience or necessity of the city;

C. To provide standards and policy guidelines and to define the circumstances when the city will not issue a letter of public convenience or necessity;

D. To provide standards and policy guidelines and to define circumstances in which the issuance of a letter of public convenience or necessity may be issued upon a showing that issuance of the license to sell alcoholic beverages will not pose a threat to the public health, safety or welfare of the city and where the public convenience or necessity is served;

E. To provide for an appeal process for those circumstances in which an applicant has requested a letter of public convenience or necessity and the request for such a letter has been approved or denied; and

F. To provide a process by which the mayor or a member of the city council may request review of the final decision of the planning and design commission relating to issuance or denial of a request to issue a letter of public convenience or necessity. (Prior code § 30.05.100)

For purposes of this chapter, the following definitions apply:

"Applicant" means any person, business or entity applying to the chief of police for a letter of public convenience or necessity. The applicant shall be the same person(s), business or entity which has applied for a liquor license with the alcoholic beverage control board.

"Chief of police" means the chief of police of the city of Sacramento or designee. For purposes of this chapter, the chief of police is the designated officer for the purposes of issuance or denial of a request for a letter of public convenience or necessity.

"Letter of public convenience or necessity" means a letter written, pursuant to Business and Professions Code Sections 23817.7 and 23958.4, to the State Department of Alcoholic Beverage Control by the chief of police setting forth that the city of Sacramento has determined that the public convenience or necessity would be served by the issuance of a license to sell alcoholic beverages at the requested location.

"Planning and design commission" means the planning and design commission established pursuant to Chapter 2.60 of this code. For purposes of this chapter, the planning and design commission is the designated subordinate body to the city council to hear appeals for the decision of the chief of police relating to issuance or denial of a letter of public convenience or necessity. (Ord. 2012-004 § 19; prior code § 30.05.105)

A. Application Requesting a Letter of Public Convenience or Necessity. Whenever an applicant for a liquor license is required to obtain a letter of public convenience or necessity from the local governing body, the applicant shall submit an application to the chief of police requesting the letter. The chief of police shall provide the applicant with an application prepared by the Sacramento police department to obtain information regarding the request.

B. Application Format. An applicant requesting a letter of public convenience or necessity shall provide written information to the chief of police as follows:

1. Type of license requested;

2. Name, home address(es), birth date, Social Security number, and home telephone number(s) of applicant(s), except in the case of a corporate applicant, in which case the name, home address, and Social Security number and home telephone number of all corporate officers shall be supplied;

• 3. Name, address, and telephone number of proposed business;
• 4. Days and hours of operation;
• 5. Number of employees per shift and number of shifts;

6. Name and address of any other alcohol-licensed businesses owned/operated by applicant, or in which applicant has had a financial interest, at any time in the past ten (10) years;

7. Date(s), location(s), and disposition of any criminal offense, whether infraction, misdemeanor, or felony, for which the applicant has been convicted or pled no contest at any time in the past; and

8. A diagram of the premises with precise measurements and sufficient detail to determine the percentage of square footage devoted to the sale of alcohol. The diagram measurements shall be in feet and inches and shall include the shelving unit height and length. (Prior code § 30.05.110)

Any applicant requesting a letter of public convenience or necessity shall pay to the Sacramento police department a nonrefundable application fee in an amount set by resolution of the city council. No application shall be deemed complete, nor shall it be reviewed, without payment of the application fee. The application fee shall be set in an amount to provide for complete cost recovery for all time, costs and expenses incurred by the city in connection with the application. (Prior code § 30.05.115)

A. The chief of police shall review the application for a letter of public convenience or necessity and may request any additional information pertinent to the applicant, the proposed license, or the location.

B. Upon receiving an application for a letter of public convenience or necessity, the police department shall provide a copy of the application to the neighborhood services department, the fire department, and the city planning and development department. These departments may provide input, comments and recommendations regarding the proposed license.

C. The police department shall provide notice of the application for a letter of public convenience or necessity to owners and residents within one thousand (1,000) feet of the outside boundaries of the property where the proposed license would be located. The notice shall advise the owners and residents that they may provide comments to the chief of police regarding the issuance of the letter. (Prior code § 30.05.120)

A. Discretionary Decision to Issue a Letter of Public Convenience or Necessity.

1. In all cases in which an applicant applies for a letter of public convenience or necessity, the chief of police may exercise his or her discretion to issue a letter of public convenience or necessity. The decision of the chief of police shall be made consistent with the factors set forth in this section and following his or her investigation.

2. When exercising discretionary authority to issue a letter of public convenience or necessity, consideration should be given to the following factors:

a. The type of proposed use by the licensee;

b. Whether the proposed use will be detrimental to the health, safety and welfare of the community;

c. Whether the use would enhance the economic viability of the area in which it is proposed to be located;

d. The extent of support or opposition to the proposed license from members of the community;

e. The number of licenses within a one-mile radius of the proposed licensed location;

f. The type of licensed premises within a one-mile radius of the proposed licensed location and the extent to which the proposed license would cause a further overconcentration of that particular type of premises in the area;

g. The background of the proposed licensee, and the history, including the nature and extent of problems on any premises where he or she has operated a licensed premises in the past, excluding any discriminatory consideration of the proposed licensee's age, ancestry, color, disability, genetic information, gender (including gender identity and gender expression), marital status, medical condition, national origin, race, religion, sex, or sexual orientation;

h. Whether the proposed applicant has ever been convicted of any offense involving moral turpitude or any offense related to the sale or use of alcoholic beverages;

i. How close the proposed establishment will be to a residential neighborhood, place of worship, or school;

j. Whether there is a history of police or crime-related problems in the area proposed for a license;

k. Whether the proposed license would enhance recreational or entertainment opportunities in the area;

l. Whether the proposed licensee will agree, in writing, to comply with the conditions set forth in Section 5.08.090 of this chapter; and

m. The nature and extent of reported crime in the reporting district in which the proposed licensee will operate. (Ord. 2013-0038 § 6; prior code § 30.05.125)

A. The chief of police shall approve or deny the application for a letter within ninety (90) days of receiving a completed application, unless additional information is requested of the applicant, in which case the chief of police shall approve or deny the application within ninety (90) days of receiving any additional information. The chief of police may either deny the application and specify the grounds upon which the denial is based; or the chief of police may approve the application, subject to such reasonable and appropriate conditions as may be imposed, including the conditions specified in Section 5.08.100 of this chapter. A copy of the decision of the chief of police to approve or deny the issuance of a letter of public convenience or necessity shall be sent to the applicant, property owners and residents identified in Section 5.08.050(C) of this chapter within three working days of issuance of the decision.

B. A letter of public convenience or necessity is only valid for one year from the date it is issued and shall so state in the body of the letter. If no license to sell alcoholic beverages has been issued to the applicant for the proposed premises, within one year of the issuance of the letter, the city's finding of public convenience or necessity shall be deemed withdrawn without the need for further action by the chief of police or the applicant, and the applicant must reapply if he or she seeks another letter. The letter of public convenience or necessity is not transferable to any other proposed licensee. Any new proposed licensee for the same premises must submit a new application and follow the procedures for issuance of a letter in this chapter. (Prior code § 30.05.130)

A. Appeal to the Planning and Design Commission.

1. The decision of the chief of police whether to approve or deny the application for a letter of public convenience or necessity or to impose additional conditions pursuant to Section 5.08.100(B) of this chapter shall be appealable to the planning and design commission by the applicant, an owner of property in the city, or any resident of the city. At any proceeding before the planning and design commission, the applicant shall have the burden of demonstrating the public convenience or necessity is served by issuance of a license, and that issuance of the license does not pose any threat to the health, safety or welfare of the community in which the license would be located. The planning and design commission shall consider the factors set forth in Section 5.08.060(A)(2) of this chapter, and make findings as to those factors in rendering its decision.

2. The request for an appeal of the decision of the chief of police shall be made in writing and delivered to the planning and development department within fifteen (15) days of the date of mailing the decision of the chief of police. Any request for an appeal to the planning and design commission must be accompanied by a nonrefundable appeal fee to be set by resolution of the city council. The appeal request shall be denied if the request is not made in a timely manner and accompanied by the appeal fee.

3. The hearing before the planning and design commission on the denial or approval of the application shall be held within sixty (60) days of the denial or approval of the application by the chief of police. The planning and design commission shall issue a written decision affirming or reversing the decision of the chief of police to deny the application.

4. No letter of public convenience or necessity shall be issued if a timely appeal to the planning and design commission decision has been requested.

5. The decision of the planning and design commission is final and nonappealable. The decision shall be in the form of a resolution containing findings of fact related to public convenience or necessity.

6. If the planning and design commission votes to approve the issuance of a letter of public convenience or necessity, it may do so conditioned on the applicant agreeing to comply with additional reasonable conditions pertaining to the operation of the business. Any additional reasonable conditions may be imposed if warranted to promote the health, safety or welfare of the community in which the proposed license is to be located. If the planning and design commission votes to approve a letter of public convenience or necessity with additional conditions, then such conditions shall be set forth in the letter.

7. The decision of the planning and design commission shall be served upon the applicant by first-class mail within five business days of issuance of its written decision. A copy of the decision shall be provided, within five business days of issuance of the decision, to the mayor and to the councilmember in whose district the proposed license would be located.

8. No letter of public convenience or necessity shall be issued until twenty (20) days following service of the decision of the planning and design commission. (Ord. 2012-004 § 20; prior code § 30.05.135)

A. No letter of public convenience or necessity shall be issued by the chief of police nor approved by the planning and design commission on appeal unless the proposed licensee agrees, in writing, that if the Alcoholic Beverage Control Board issues a license to sell alcoholic beverages, the license will be subject to the following conditions at all times the license is in use:

1. Sales of beer and malt beverages shall be in quantities of not less than a six-pack;

2. Sales of wine shall be in containers of at least 750 ml;

3. Wine coolers, whether made for wine or malt products, shall not be sold in quantities of less than factory packs of four; and

4. Distilled spirits shall be sold in containers of at least 200 ml.

B. The chief of police may require additional reasonable conditions to be imposed on the applicant. The decision of the chief of police to require imposition of additional conditions shall be discretionary, and he or she may consider the factors set forth in Section 5.08.050 of this chapter and whether additional conditions will promote the public necessity or convenience. Such conditions shall be set forth in the letter of public convenience or necessity and may include, but shall not be limited to, the following:

1. No wine shall be sold with an alcohol content greater than fifteen (15) percent by volume;

2. There shall be no cups, glasses, or similar receptacle commonly used for the drinking of beverages sold, furnished, or given away at the licensee's premises in quantities of less than twenty-four (24) in their original multi-container package, with the exception of food and beverage containers with a corporate logo or business name embossed or stamped on the container when sold in conjunction with food and nonalcoholic beverages;

3. All ice shall be sold at or about prevailing prices in the area and in quantities of not less than seven pounds per sale, excluding ice sold in conjunction with fountain drinks;

4. For any premises holding an on-sale license, the quarterly gross sales of alcoholic beverages shall not exceed the gross sales of food during the same period;

5. Trash receptacles shall be of a design to prevent unauthorized removal of articles from the trash bin; and

6. No alcoholic beverages may be sold for off-premises consumption between the hours of eleven p.m. and two a.m.

C. Any letter of public convenience or necessity shall specifically set forth that the public convenience or necessity is served only if the conditions set forth in the letter are imposed on the applicant by the state Department of Alcoholic Beverage Control Board.

D. The requirement for imposition of conditions as set forth in subsection A of this section is not appealable. (Ord. 2013-0007 § 5; prior code § 30.05.145)