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HomeMy WebLinkAboutReportMayor Ron Morrison Council Members Alejandro Sotelo-Solis Mona Alvarado -Rios Louis Natividad Rosalie Zarate TO: FROM: SUBJECT: CALIFORNIA NT'1ONAL CITir INcoEPOR jr1D Office of the City Attorney Mayor and City Council George H. Eiser, III, Legal Counsel City Policy Prohibiting Sales of Beer in Small Quantities City Attorney Claudia Gacitua Silva Legal Counsel George H. Eiser, III Senior Assistant City Attorney Jodi L. Doucette DATE: December 8, 2010 Recently, the question has been raised by certain retail businesses proposing to engage in the sale of beer as to whether the City would depart from its policy of prohibiting sales of beer in small quantities, e.g., in single cans or three -packs. This memorandum will discuss how this City policy cane to be established, the rationale behind the policy, and the City Council's options in dealing with this issue. There is no officially -established policy of the City prohibiting the sale of beer in small quantities, However, the Planning Commission has been consistent in including conditions in CUP's prohibiting the sales of beer in smaller quantities by businesses applying to sell beer. It is believed this informal policy originated based upon requests by the ABC, and upon concerns of the Police Department. Pursuant to the Municipal Code, any conditions of approval imposed by the Planning Commission may be appealed to the City Council. The rationale of the Police Department in opposing sales of beer in small quantities is explained in the attached memorandum prepared by Lt. Graham Young. The three options available to the City Council regarding this issue are: 1. Take action to relax or eliminate the current informal policy prohibiting the sale of beer in small quantities. 2. Take action to strengthen, to the extent possible, the current informal policy. 3. Allow the current informal policy to remain in effect. Regardless of which of the above options is favored by the City Council, it may be the best course of action for the Council to adopt a formal written policy. The existence of a formal written policy would provide clear notice to the public of the policy. Further, the existence of a formal written policy would give guidance to the Planning Commission, which is the body that first considers applications for CUP's to sell alcoholic beverages. Before deciding the matter, the City Council may also wish to direct that the Planning Commission provide their input. GEORGE H. EISER, III Legal Counsel GHEIgmo 1243 National City Boulevard; National City, California 91950-4301 Tel.: (619) 336.4220 Fax: (619) 336.4327 Problems with Less than Six -Pack Sales in National City What are the benefits of allowing three -pack sales? • If the benefit is generating more sales and increasing revenue for the City through increased alcohol sales, then I believe we are heading down a dangerous path. The "not less than a six-pack" has worked well for us especially since we don't have a dedicated policing unit to regulate enforcement of ABC regulations and laws. Currently, ABC has three agents for enforcement south of Interstate 8. One has to ask why there is such a push for less than six-pack sales from retailers. • Packaging in a "three pack" is as common as single sales and is targeting a specific socioeconomic group, i.e. lower income brackets, transients, and youth. • Having worked in the grocery industry, I know that if there is a specific market (profit probability) for a product especially in bottle and can products a distributor will package a product anyway the retailer would like. The industry standard is a six-pack. • Local packaging outlets will package product in any quantity a retailer would like based on a targeted population. Six pack sales are less of an impulse buy, based on the volume quantity and price. • Six-pack is 6 X 12 ounces = 72 ounces. • Three -pack could range from 20 ounce, 24 ounce, 32 ounce which could result in the price being cheaper for the same or more product. What results based on scientific studies have concluded. • A study by University of California Riverside Professor Robert Parker concluded that areas with a high availability of single - serving beer and alcoholic beverages were more likely to have higher rates of crime and violence. • In the research project's final report, Professor Parker wrote, "We would expect that if alcohol from single serve containers is being immediately consumed, rates of violence would tend to be higher around retailers with higher percentages of cooler space devoted to these products." Generally, single and three packs are sold cold and in larger volume containers geared for immediate consumption and targeting a specific socioeconomic group. Based on my training and experience, I have never seen a transient with a six-pack or twelve -pack, usually the transient has a single beer larger than 12 ounces. Additionally, it seems extremely unlikely that someone will buy a single can or a triple -pack to take home and refrigerate until later. • Compare alcohol to soft drinks, if a consumer wants a product for immediate consumption he buys less than a six pack. If he or she wants the product for later consumption then they buy a six-pack or greater. National City and the Police Department have devoted a huge amount of resources dealing with the transient population throughout the City. In the case of El Super, the location of this site is right next to transient encampments in the riverbed, next to a recycling center located on Chula Vista jurisdiction (that we have very little control over). These two factors provide transients quick access to cash to purchase a smaller amount of cold alcoholic beverage for immediate consumption steps away from where they reside and generate revenue. In the case of El Super, this location is situated directly across the street from Sweetwater high School. The availability for youth to obtain or purchase a smaller amount of cold alcoholic beverage for immediate consumption (youth do not generally purchase six-packs or greater to take home to keep cold for consumption at a later date).