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1 CITY OF WEST SACRAMENTO AGENDA REPORT MEETING DATE: May 18, 2016 ITEM# 7 SUBJECT: CONSIDERATION OF RESOLUTION DENYING A REQUEST FOR A DETERMINATION OF A PUBLIC CONVENIENCE OR NECESSITY FOR ISSUANCE OF AN ALCOHOLIC BEVERAGE CONTROL LICENSE TRANSFER FOR AJ HUNDAL MART INITIATED OR REQUESTED BY: REPO COORDINATED OR PREPARED BY: Dawna~ cs ner, Administrative Analyst [ ] Council [X] Staff [] Other "' l)'1 'V ~ -cc. s-;_... Thomas McDonald, Chief of Police ATTACHMENT [X] Yes [ ] No [ ] Information [ ] Direction [X] Action OBJECTIVE The purpose of this report is to recommend that Council adopt Resolution regarding the denial of a request for a determination of Public Convenience or Necessity for issuance of a Person-to-Person and Premises-to Premises Transfer of an Alcoholic Beverage Control (ABC) Type 20 Off-Sale Beer and Wine License for AJ Hundal Mart. RECOMMENDED ACTION It is respectfully recommended that the City Council adopt Resolution finding and determining that the Public Convenience or Necessity would not be served by the issuance of a Person-to-Person and Premises-to Premises Transfer of an Off-sale Beer and Wine (type-20 Alcoholic Beverage Control License) for the premises located at 2434 West Capitol Avenue, West Sacramento California (AJ Hundal Mart). BACKGROUND Effective January 1, 1995, Section was added to the State Business and Professions Code, which prohibits the issuance of new or premises-to-premises transfers of alcohol retail licenses in any area that has an "undue concentration" of licenses. Under subsection (a) of Section , an "undue concentration" for offsale retail license applications is found where the applicant premises for an new or premises-to-premises license transfer are either: (1) located in a crime reporting district that has a 20 percent greater number of reported crimes than the average number of reported crimes as determined from all crime reporting districts within the jurisdiction of the local law enforcement agency; or (2) the ratio of off-sale retail licenses to population in the census tract or census division in which the applicant premises are located exceeds the ratio of off-sale retail licenses to population in the county in which the applicant premises are located. Where an "undue concentration" of alcohol retail licenses exist, sections and of the Business and Professions Code requires the Department of Alcoholic Beverage Control to deny the application unless the local governing body of the area in which the applicant premises are located, in this case the City Council, determines that public convenience or necessity would be served by the issuance. ANALYSIS The applicant Narinder Pal Singh Hundal is seeking a Person-to-Person and Premise-to-Premise Transfer for an Alcoholic Beverage Control Type 20 Off-Sale Beer and Wine License for AJ Hundal Mart located at 2434 West Capitol Avenue in West Sacramento. The AJ Hundal Mart lies in Census Tract , which allows four off-sale licenses per ABC guidelines. Currently there are fourteen active off-sale licenses (not including the applicant's proposed license), which is considered an undue concentration. Moreover, this particular transfer request is for a license that is currently located outside of the city limits in Dunnigan, California; thus adding another liquor license in this already over concentrated area of West Sacramento if it were to be granted. Because an undue concentration of off-sale licenses exists in the census tract, the Department of Alcoholic Beverage Control (ABC) must deny the applicant's license transfer unless the City Council determines that public convenience or necessity (PCN) would be served by the issuance.

2 ABC Transfer AJ Hundal Mart May 18, 2016 Page 2 State law does not provide any specific criteria that the local governing body must consider in deciding whether or not the issuance of a particular license would serve a public convenience or necessity. Therefore, the Police Department and the Community Development Department have reviewed the applicant's request to determine whether public convenience or necessity would be served by issuance of the license transfer based on the following factors: The crime statistics in the area in which the establishment seeking an ABC license is located Whether or not the proposed use will be detrimental to the health, safety and welfare of the community Whether or not the proposed use fulfills a necessity for goods or services in that area Whether or not the proposed use supports overall mission and vision of the city With respect to crime statistics, between January 1, 2015, and April 27, 2016, there have been seven major crime reports made at 2434 West Capitol Avenue where the AJ Hundal Mart is located. One incident was categorized as a violent crime (robbery) and four were categorized as property crime (one burglary, three larceny thefts). The remaining two reports were for a weapons violation and a narcotics sale. Crime Type January 2015 to April 2016 Robbery 1 Burqlarv 1 There were 51 calls for service related to this location, with 71 % of them being officer initiated. The majority of the officer initiated calls for service were subject stops (21) and traffic stops (9). The remaining 15 calls for service were citizen initiated and related to the aforementioned crime reports in addition to several fights and disturbances. With regard to alcohol related crime, there were few incidents directly correlated to the consumption of alcohol. The principal cause for complaints stemming from this location is mostly influenced by the foot traffic that passes in front of the business. As shown on the map below, there are also three off-sale liquor licenses located along a one-mile stretch of West Capitol Avenue, all within close proximity of the AJ Hundal Mart, indicating an additional establishment licensed for off-sale wine and beer sales is not a "necessity" for this area. Total Larceny Theft 3 Carrvino/Possession of Weapon 1 Drug Abuse Violations 1

3 ABC Transfer AJ Hundal Mart May 18, 2016 Page 3 Additionally, the total number of calls for service during the calendar year of 2015 for the three locations with the off-sale licenses were compared to the AJ Hundal Mart location. As indicated in the following data table and crime map, the three locations with the off-sale licenses show markedly increased crime rates within the immediate radius of those businesses, as compared to other businesses in that vicinity. Currently, AJ Hundal Mart does not sell alcohol and reflects crime levels far below those of the three businesses. This indicates a potential correlation between elevated crime levels and businesses that sell alcohol.

4 ABC Transfer AJ Hundal Mart May 18, 2016 Page 4 The following shows the identified "hot spot" crime areas on each side of AJ Hundal Mart, locations of the three businesses with off-sale licenses: which are the Another consideration is whether the proposed use supports overall mission and vision of the city. The project site is located within the Mixed Use Residential segment of West Capitol Avenue in the West Capitol Avenue Streetscape Master Plan and Design Guidelines. This area is planned primarily for residential uses with commercial uses programmed at key nodes, such as at Harbor Blvd./West Capitol and Westacre Rd./West Capitol. Although limited commercial uses will still be allowed in this area, they will be secondary to residential uses in a more urban setting. Projects will be oriented toward pedestrian access, deemphasizing vehicle use. As sites redevelop, new buildings will be oriented to West Capitol to form a more urban street wall. The existing gas station at the AJ Hundal Mart is not consistent with the planned vision for this segment of West Capitol and thus intensifying the use at this location by adding off-sale alcohol sales would not help achieve the goals of the Master Plan. Based on ABC Type 20 license oversaturation, crime rate issues, and the furtherance of the City's master plan for the future of West Capitol Avenue, staff recommends that the City Council deny the request for a determination of public convenience or necessity on the application for a Person-to-Person and Premise-to Premise Transfer for Alcoholic Beverage Control Type 20 Off-Sale Beer and Wine License filed by the applicant for the AJ Hundal Mart located at 2434 West Capitol Avenue in West Sacramento. Commission NIA Recommendation Strategic Plan Integration This supports the City's vision of Our Residents Feeling Safe and Secure and West Capitol Downtown. Avenue as Our City's

5 ABC Transfer AJ Hundal Mart May 18, 2016 Page 5 Alternatives 1. The City Council may elect to approve the applicant's request for a public convenience or necessity determination on the application for a Person-to-Person and Premises-to-Premises Transfer for Alcoholic Beverage Control Type 20 Off-Sale Beer and Wine License filed by AJ Hundal Mart located at 2434 West Capitol Avenue in West Sacramento, in which case City staff suggests the Council request ABC add the following restrictions to the license: 1. No single can/bottle sales of beer or malted liquor. 2. No 32 or containers of beer or malted liquor to be sold. 3. Beer must be sold as a 6-pack unit, minimally. 4. Wine coolers must be sold in a minimum of a 4-pack container No malted wines may be sold. No alcoholic beverage consumption on the licensed premises, including the parking lot. 7. The licensee shall insure the area surrounding the licensed premises is free of litter and trash associated with the licensed premises. 8. The licensee shall insure the licensed premises is properly illuminated during the hours of darkness to allow a clear view of the entire exterior of the premises. 9. The licensee shall maintain a high quality/resolution video system which shall capture the interior and exterior of the licensed premises, including the parking lot, pump area, trash enclosure, etc. The licensee shall make video recordings of crimes occurring on the licensed premises available upon request to the West Sacramento Police Department. 10. The licensee shall cooperate in any law enforcement investigation when the licensee's assistance is requested. 11. No alcoholic beverage sales after midnight. 2. The City Council may elect to approve the applicant's request for a public convenience or necessity determination on the application for a Person-to-Person and Premises-to-Premises Transfer for Alcoholic Beverage Control Type 20 Off-Sale Beer and Wine License filed by AJ Hundal Mart located at 2434 West Capitol Avenue in West Sacramento without conditions. If the City Council is inclined to approve the applicant's request for a determination that the license transfer would serve a public convenience or necessity, Staff recommend the Council adopt Alternative 1 in light of the current ABC Type 20 license oversaturation and crime rate issues in the area. Coordination and Review This report was coordinated and reviewed by Police Department and Community Development Department Staff. Budget/Cost Impact None ATTACHMENT 1. ABC transfer request letter 2. Resolution 16-43

6 Department of Alcoholic Beverage Control APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE{S) ABC 211 (6/99) State of California TO:Department of Alcoholic Beverage Control 2400 DEL PASO ROAD SUITE 155 SACRAMENTO, CA (916) File Number: Receipt Number: Geographical Code: 5704 Copies Mailed Date: November 5, 2015 Issued Date: DISTRICT SERVING LOCATION: First Owner: Name of Business: Location of Business: County: Is Premise inside city limits? Mailing Address: (If different from premises address) Type oflicense(s): Transferor's license/name: SACRAMENTO HUNDAL, NARINDER PAL SINGH AJ HUNDAL MART 2434 W CAPITOL AVE WEST SACRAMENTO, CA YOLO Yes 2308 EVERGREEN A VE WEST SACRAMENTO, CA I I ACOSTA, NANCY Census Tract Dropping Partner: Yes No I v License Type Transaction Type Fee Type 20 - Off-Sale Beer And Win PERSON-TO-PERSON TRANSFER NA ' Off-Sale Beer And Win- PREMISE TO PREMISE TRANSFER NA 20 - Off-Sale Beer And Win ANNUAL FEE NA NA FEDERAL FINGERPRINTS NA NA STATE FINGERPRINTS NA Master Dup Date Fee y 0 11/05/15 $50.00 y 0 I l/05/15 $ y 0 11/05/15 $ N 11/05/15 $24.00 N 11/05/15 $39.00 Have you ever been convicted of a felony? No Have you ever violated any provisions of th~ Alcoholic Beverage Control Act, or regulations Department pertaining to the Act? No Explain any "Yes" answer to the above questions on an attachment which shall be deemed part of this application. Total $ Applicant agrees (a) that any manager employed in an on-sale licensed premises will have all the qualifications of a licensee, and (b) that he will not violate or cause or permit to be violated any of the provisions of the Alcoholic Beverage Control Act. STATE OF CALIFORNIA County of YOLO Date: November 5, 2015 Under penalty of perjury, each person whose signature appears below, certifies and says: (I) He is an applicant, or one of the applicants, or an executive officer of the applicant corporation, named in the foregoing application, duly authorized to make this application on its behalf; (2) that he has read the foregoing and knows the contents thereof and that each of the above statements therein made are true; (3) that no person other than the applicant or applicants has any direct or indirect interest in the applicant or applicant's business to be conducted under the license(s) for which this application is made: (4) that the transfer application or proposed transfer is not made to satisfy the payment of a loan or to fulfill an agreement entered into more than ninety (90) days preceding the day on which the transfer application is filed with the Department or to gain or establish a preference to or for any creditor or transferor or to defraud or injure any creditor of transferor; (5) that the transfer application may be withdrawn by either the applicant or the licensee with no resulting liability to the Department. Effective July I, 2012, Revenue and Taxation Code Section 7057, authorizes the State Board of Equalization and the Franchise Tax Board to share taxpayer information with Department of Alcoholic Beverage Control. The Department may suspend, revoke, and refuse to issue a license if the licensee's name appears in the 500 largest tax delinquencies list. (Business and Professions Code Section ) of the Applicant Name(s) HUND AL, NARINDER PAL SINGH Applicant Signature(s) See 211 Signature Page

7 RESOLUTION A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST SACRAMENTO FINDING AND DETERMINING THAT THE PUBLIC CONVENIENCE OR NECESSITY WOULD NOT BE SERVED BY THE ISSUANCE OF A PERSON-TO-PERSON AND PREMISES-TO PREMISES TRANSFER OF AN OFF-SALE BEER AND WINE (TYPE-20 ALCOHOLIC BEVERAGE CONTROL LICENSE) FOR THE PREMISES LOCATED AT 2434 WEST CAPITOL AVENUE, WEST SACRAMENTO CALIFORNIA (AJ HUNDAL MART) WHEREAS, pursuant to applicable provisions of the Business and Professions Code of the State of California, the Department of Alcoholic Beverage Control (hereinafter the "ABC") is charged with the responsibility of reviewing applications and issuance of licenses ("license") for the sale and/or manufacture of alcoholic beverages in the State of California; and WHEREAS, Section of the Business and Professions Code provides that the ABC shall deny an application for a license if issuance of that license would tend to create a law enforcement problem, or if issuance would result in or add to an undue concentration of licenses, except as provided in Section of said Business and Professions Code; and WHEREAS, Section of the Business and Professions Code provides that, notwithstanding the limitations of Section 23958, the ABC shall issue a license if the applicant shows that public convenience or necessity Would be served by the issuance of such license; and WHEREAS, pursuant to Section of the Business and Professions Code, the local governing body in this case, the "City Council," has the discretion to determine when public convenience or necessity would be served by allowing an alcohol license in an area where there is an over concentration of licenses or where there is high crime; and WHEREAS, Narinder Pal Singh Hundal of AJ Hundal Mart ("Applicant") located at 2434 West Capitol Avenue in West Sacramento has petitioned the ABC for a Person-to-Person and Premises-to-Premises Transfer of an Off-Sale Beer and Wine (Type 20) License to augment their primary operations as a Mobile Fueling Station and Convenience Store; and WHEREAS, the subject business is located in Census Tract with population such that the ABC may permit up to four (4) off-sale licenses before an undue concentration would exist, and there is currently fourteen (14) off-sale liquor licenses in Census Tract ; and WHEREAS, because an undue concentration of Type 20 off-sale licenses exists in Census Tract , the ABC must deny the Applicant's license transfer unless the City Council determines that public convenience or necessity would be served by the issuance. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of West Sacramento as follows: 1. That the public convenience or necessity would not be served by the proposed sale of beer and wine for off-premises consumption in conjunction with the operation of the AJ Hundal Mart at 2434 West Capitol Avenue.

8 Resolution Page 2 2. That there are three existing businesses with off-sale liquor licenses located along a one-mile stretch of West Capitol Avenue, all within close proximity of the AJ Hundal Mart, indicating an additional establishment licensed for off-sale wine and beer sales is not a necessity for this area. 3. That, between January 1, 2015, and April 27, 2016, there have been seven major crime reports made at 2434 West Capitol Avenue where the AJ Hundal Mart is located. One incident was categorized as a violent crime (robbery) and four were categorized as property crime (one burglary, three larceny thefts). The remaining two reports were for a weapons violation and a narcotics sale. 4. That the three businesses with existing off-sale alcohol licenses located in proximity to the AJ Hundal Mart have elevated crime rates and statistics, as compared to other businesses in that vicinity, indicating a correlation between ABC off-sale alcohol licensed businesses and crime levels in that area. 5. That the existing gas station at 2434 West Capitol Avenue is not consistent with the planned vision for this segment of West Capitol Avenue set forth in the West Capitol Avenue Streetscape Master Plan and thus intensifying the use by adding a Type 20 ABC license for offsale alcohol sales at this location would not help achieve the goals of the Master Plan. denied. 5. The request for Public Convenience or Necessity Determination is hereby PASSED AND ADOPTED by the West Sacramento City Council this 18th day of May 2016, by the following vote: AYES: NOES: ABSENT: ATTEST: Christopher L. Cabaldon, Mayor Kryss Rankin, City Clerk