CHAPTER 9.34
ALCOHOLIC BEVERAGE CONTROL –

Request for Letter of Public Convenience or Necessity

9.34.010    Purpose

9.34.010    Definitions

9.34.030    Procedure to request a Letter of Public Convenience or Necessity

9.34.040    Nonrefundable application fee

9.34.050    Review of the application for a Letter Of Public Convenience or Necessity

9.34.060    Factors for consideration relating to issuance and denial of Letters of Public Convenience or Necessity

9.34.070    Issuance or denial of a request for Letter of Public Convenience or Necessity

9.34.010 PURPOSE.

The purpose of this ordinance is to describe the process for the City to review proposals for alcoholic beverage licenses located within an area of “undue concentration” in order to determine whether a Letter of Public Convenience or Necessity should be issued. (Ord. 886, § 2, passed 07-26-2010)

9.34.020 DEFINITIONS.

For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

ADMINISTRATOR. The City Manager and Chief of Police of the City.

APPLICANT. Any person, business or entity applying to the City 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.

LETTER OF PUBLIC CONVENIENCE OR NECESSITY. A letter written, pursuant to Business and Professions Code 23817.7 and 23958.4, to the state Department of Alcoholic Beverage Control by the Administrator setting forth that the City 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.

UNDUE CONCENTRATION. Has the same meaning as found in Cal. Business and Professions Code § 23958.4, as the same may be amended from time to time.

(Ord. 886, § 2, passed 07-26-2010)

9.34.030 PROCEDURE TO REQUEST A LETTER OF PUBLIC CONVENIENCE OR NECESSITY.

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 City Clerk requesting the letter.

B.    Application Format. The City Clerk shall provide the applicant with an application form prepared by the City in order to obtain information regarding the request.

C.    Mailing Labels for Adjacent Property Owners. Applicant shall provide mailing labels for owners and residents within 500 feet of the outside boundaries of the property where the proposed license would be located. If the labels are found to be flawed, the application will be null and void.

(Ord. 886, § 2, passed 07-26-2010)

9.34.040 NONREFUNDABLE APPLICATION FEE.

Any applicant requesting a Letter of Public Convenience or Necessity shall pay to the City 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 the applicant providing the mailing labels required by Section 9.34.030(C), above, and paying 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. (Ord. 886, § 2, passed 07-26-2010)

9.34.050 REVIEW OF THE APPLICATION FOR A LETTER OF PUBLIC CONVENIENCE OR NECESSITY.

A.    The Administrator shall review the application for a Letter of Public Convenience and 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 and Necessity, the City Clerk shall provide a copy to the Community Development Department, Police Department and Fire Department. These departments may provide input, comments, and recommendations regarding the proposed license.

C.    The City Clerk shall provide notice of the application for a Letter of Public Convenience or Necessity to owners and residents within 500 feet of the outside boundaries of the property where the proposed license would be located using mailing labels provided by the applicant. The notice shall advise the owners and residents that they may provide comments to the City regarding the issuance of a Letter of Public Convenience or Necessity; comments must be received within thirty (30) days of said notice.

D.    Applicant shall prominently display on the window of the proposed location of the request for a Letter of Public Convenience and Necessity a notice stating that a decision is pending and giving the timeframe for comments and protests. Said notice shall be provided by the City.

E.    The Administrator may choose to refer any application for a Letter of Public Convenience and Necessity to the City Council for hearing and decision.

(Ord. 886, § 2, passed 07-26-2010)

9.34.060 FACTORS FOR CONSIDERATION RELATING TO ISSUANCE AND DENIAL OF LETTERS OF PUBLIC CONVENIENCE OR NECESSITY.

A.    Administrative 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 and Necessity, the decision of the Administrator shall be made consistent with the factors set forth in this section and following their investigation.

2.    When exercising administrative authority to issue a Letter of Public Convenience and 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.    How close the proposed establishment will be to a residential neighborhood, place of worship, or school;

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

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

j.    The nature and extent of reported crime in the area in which the proposed licensee will operate.

(Ord. 886, § 2, passed 07-26-2010)

9.34.070 ISSUANCE OR DENIAL OF A REQUEST FOR LETTER OF PUBLIC CONVENIENCE OR NECESSITY.

A.    The Administrator shall issue a Letter of Public Convenience or Necessity or make a determination that the request is not of public convenience or necessity within ninety (90) days of receiving a completed application, unless additional information is requested of the applicant, in which case the application shall be approved or denied within ninety (90) days of receiving any additional information. Any decision of the Administrator regarding issuance of a Letter of Public Convenience or Necessity, including an affirmative decision to not issue a Letter of Public Convenience or Necessity, shall be final and conclusive and shall only be subject to review by a court of competent jurisdiction, in accordance with Part 3, Title 1, Chapter 3 of the Cal. Code of Civil Procedure.

B.    A Letter of Public Convenience and 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 Administrator or the applicant, and the applicant must reapply if he or she seeks another letter. The Letter of Public Convenience and 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.

(Ord. 886, § 2, passed 07-26-2010)