Planning Commission Staff Report March 19, 2015

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Planning Commission Staff Report March 19, 2015 Project: Total Wine & More File: EG-15-001 Request: Conditional Use Permit (CUP) and a Determination of Public Convenience or Necessity (PCN) Determination Location: 7707 Laguna Blvd., Ste. 140 APN: 116-1160-004 Staff: Nathan Anderson OWNER: APPLICANT: AGENT: Donahue Schriber Realty Group Sarah Elliot Representative 200 East Baker St., Ste. 100 Costa Mesa, CA 92626 California Fine Wines & Spirits LLC DBA Total Wine & More 11325 Seven Locks Rd, Ste 214 Potomac, MD 20854 Alcoholic Beverage Consulting Steve Rawlings Representative 26023 Jefferson Ave., Ste. D Murrieta, CA 92562 Staff Recommendation Staff recommends that the Planning Commission adopt a Resolution recommending that the City Council: 1. Find no further CEQA review is necessary for the Total Wine & More project (EG-15-001) pursuant to Section 15301 (Existing Facilities) of Title 14 of the California Code of Regulations; and 2. Approve a Conditional Use Permit and Determination of Public Convenience or Necessity for the Total Wine & More project (EG-15-001) subject to the findings and conditions of approval included in the proposed resolution (Attachment 1). Project Description The proposed Project consists of a Conditional Use Permit (CUP) and a Determination of Public Convenience or Necessity (PCN) to allow for sale of beer, wine, and liquor for off-site consumption (Type 21 license), as well as a permit for on-site consumption of beer and wine in three (3) separate sanctioned-off areas for limited wine and beer tasting (Type 42 license) within an existing 21,332 square foot retail store. Since the City Council is the approving authority for the PCN, the CUP and PCN are being processed concurrently and the City Council shall be the final approving authority for both entitlements pursuant to EGMC Section 23.14.050 after a recommendation by the Planning Commission. Background The State Department of Alcoholic Beverage Control (ABC) requires an applicant to obtain a PCN from the affected jurisdiction when the establishment is located within a high crime area or when the census tract is deemed over-concentrated by ABC s standards. According to ABC, two licenses are allowed in this census tract before it is considered to be overconcentrated. Since ten active licenses exist (this store would be the eleventh), this location is deemed over-concentrated by ABC. It should be noted that two of the businesses with licenses were recently closed but still show up as part of the Census Tract datasheet. 1

Elk Grove Planning Commission Total Wine & More EG-15-001 March 19, 2015 Page 2 Additionally, crime statistics have been provided by the Elk Grove Police Department, which consider this area a high crime area of Elk Grove. These statistics are discussed later in this report. Project Setting The Project site is located at 7707 Laguna Boulevard, Suite 140 (APN: 116-1160-004) in the City of Elk Grove (City) (Figure 1). The Project site is a vacant tenant space within a currently developed commercial center (Figures 2 and 3). The Project site is bordered by residential uses to the north and south, office to the east, and commercial to the west. Table 1 details the Project s and adjacent properties current Zoning and General Plan designations and uses. Table 1. Land Uses and Designations Existing Use General Plan Zoning Subject Site Vacant Tenant Space Commercial SC North Residential MDR RD-10 South Residential HDR RD-20 East Office OF MP West Commercial Commercial SC Figure 1. Location Map Project Site 2

Elk Grove Planning Commission Total Wine & More EG-15-001 March 19, 2015 Page 3 Figure 2. Aerial Photo Project Site Figure 3. Site Plan 3

Elk Grove Planning Commission Total Wine & More EG-15-001 March 19, 2015 Page 4 Analysis Chapter 23.26 of the Elk Grove Municipal Code classifies a retail establishment which has fifty percent (50%) or more of the shelving or gross floor area devoted to the public display and sale of alcoholic beverages for off-site consumption as a liquor store. According to Chapter 23.27, Table 23.27-1 (Allowed Uses and Required Entitlements for Base Zoning Districts) this use requires approval of a CUP in the SC (Shopping Center) zoning district prior to obtaining any Occupancy Permits from the Building Department. The CUP allows the approving authority to evaluate individual uses that are supported by the General Plan, though due to certain operating characteristics or site development features may need further review to ensure their compatibility with surrounding development and uses. Chapter 23.16.070 of the Zoning Code establishes the necessary findings that must be made to grant a CUP. In addition to being consistent with both the General Plan and Zoning Code s development provisions, uses requiring a CUP must not be detrimental to the health, safety, peace, morals, comfort, or general welfare of persons residing or working in the neighborhood of such use, or the general welfare of the City. In conjunction with this application, ABC has reviewed Total Wine & More s request for an alcoholic beverage license and determined that this store is located both in a census tract which is over-concentrated and in a high crime area as defined by their standards. Because of this determination, ABC has requested Total Wine & More to obtain a PCN from the City prior to the issuance of an alcohol license. Per Subsection 4.54.520(C) of the Elk Grove Municipal Code, the City Council determines whether public convenience or necessity will be served by the issuance of an alcohol license for the applicant s premises. Since the City Council is the approving authority for the PCN, the CUP and PCN are being processed concurrently and the City Council shall be the final approving authority for both entitlements pursuant to EGMC Section 23.14.050. Chapter 4.54 of the Elk Grove Municipal Code establishes a protocol for the issuance and review of PCN s. A variety of City departments (including the Elk Grove Police Department and the Elk Grove Code Enforcement division) are required to review PCN applications in order to determine current and past problems at the Applicant s proposed location. In exercising its discretion, Chapter 4.54 of the Municipal Code requires that the approving authority consider the following factors in making a determination of public convenience or necessity: 1. Proximity and number of other retail outlets selling alcohol; 2. Proximity of the retail outlets to schools, playgrounds, and other facilities serving young people; 3. Proximity of the retail outlet to residential neighborhoods; and 4. Whether the retail outlet provides: (a) a wide range of desirable goods and services; or (b) a unique type of goods or services. The proposed Project is located within Census Tract 96.39, which encompasses approximately 700 acres (see Figure 4). There are currently 10 active alcohol licenses within tract 96.39 that have either a Type 20 (Off-Sale Beer and Wine) or Type 21 (Off-Sale General) alcohol license for the sale of alcohol beverage for off-site consumption. It should be noted two of these licenses have been closed/surrendered within the last year. One was the former Save Mart license within the project tenant space, which was surrendered to Fresh Market upon store closing. The other was a Type 20 license previously held by Target, which now holds an active Type 21. 4

Elk Grove Planning Commission Total Wine & More EG-15-001 March 19, 2015 Page 5 Additionally, there is an active Type 20 license for the area which is not currently assigned to a physical location or business name. The nearest retail sale location to Total Wine & More is Target, located approximately 500 feet to the northwest within the same shopping center. The rest are scattered throughout the area. These surrounding businesses are detailed in Table 2. Table 2. Census Tract 96.39 Off-Sale Licenses Map Business Name Status Type Orig. Issue Date # 1 Sheldon Road Chevron Active 20 10/12/1999 2 BevMo Active 21 4/12/2002 3 Target T1025 Not Active 20 9/30/2015 4 Winco 37 Active 21 8/4/2004 5 Not currently assigned Active 20 6/22/2010 6 Walgreens Active 20 8/25/2010 7 Sprouts Farmers Markets Active 21 7/27/2010 8 Target T1025 Active 21 9/28/2011 9 Fresh Market (Surrendered from SaveMart) Not Active 21 10/23/2013 10 Kwik Korner Active 20 5/20/2014 Figure 4. Census Tract 96.39 Off-Sale License Locations 5

Elk Grove Planning Commission Total Wine & More EG-15-001 March 19, 2015 Page 6 Although the Project site is located within a high crime and over-concentrated census tract, staff supports the approval of the use at this location. The closest playground (Zimbelman Park) is located over 1,000 feet to the northeast behind the Parkside at Laguna II residential subdivision. The nearest school (Harriett Eddy Middle School) is located approximately 1,500 feet south of the site behind the Village Crossing Apartment Complex. Neither of these would be considered directly accessible from the Project site. The Total Wine & More franchise was started in 1991. It currently has over 110 stores in 16 states, including 12 in the state of California. The business has stated that it targets high-income, welleducated customers who want large, clean and comfortable stores with excellent design features that provide an up-scale shopping environment. The retail outlet serves to provide a unique type of goods to the public. This includes the widest wine selection in all market segments, with an emphasis on fine wines. Each of the stores carries different types of wine from every wine-producing region in the world, as well as a wide selection of domestic imported and specialty beers and a large selection of all categories of spirits. The three areas which would provide opportunities for beer and wine tasting would be cordoned off from the rest of the store, and would not allow access to minors. These areas have strict regulations as to the amount and quantities of pours allowed to customers. These would not allow or provide sales of alcohol to be consumed on the premises. They would be used strictly for educational and tasting purposes. See Figure 5 for the proposed floor plan with these designated areas. Figure 5. Floor Plan 6

Elk Grove Planning Commission Total Wine & More EG-15-001 March 19, 2015 Page 7 The Elk Grove Police Department (EGPD) has provided crime statistics for the store s location (Attachment 2). The crime statistics stated that, during the 2013 calendar year (the most recently compiled statistical data) the subsector of the City containing the Project site contained 355 reported crimes. Of those, 292 were crimes related to larceny and 24 were related to burglary. Although this area is considered a high crime area by both EGPD and ABC, EGPD has determined that there would be no public safety reason to oppose the Project, per conditions of approval which have been included as part of Attachment 1. Because more than 82 percent of the crimes reported are associated with larceny (many stemming from shoplifting associated with the Target store) the EGPD does not consider the majority of crimes within the area to be alcohol-related. In addition, Total Wine & More implements security measures in its stores to ensure the safe sale of alcohol, including the use of security cameras. Total Wine & More also requires employees to undergo extensive training and participate fully in the store s strict operational policies regarding the sale of alcohol. Due to the nature of sales associated with the Project and the likelihood of a redistribution (rather than an increase) associated with alcohol related crimes, as well as a credible and cooperative applicant, the Police Department does not have a public safety related objection to the issuance of a PCN. Letters from Commenting Agencies The Project was routed to various City agencies. Comments received were incorporated into the Conditions of Approval (Exhibit A of Attachment 1). Environmental Analysis The California Environmental Quality Act (CEQA) requires analysis of agency approvals of discretionary projects. A project, under CEQA, is defined as the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. The proposed Conditional Use Permit and Letter of Public Conve nience or necessity is a project under CEQA. The Project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Title 14 of the California Code of Regulations, (State CEQA Guidelines) Section 15301, Class 1 (Existing Facilities). A Categorical Exemption Section 15301 (Existing Facilities) exempts projects that involve negligible or no expansion of an existing use. This Project consists of the sale of alcoholic beverages within a vacant tenant space of an existing building. The Project does not propose to physically expand the existing facility. Based on staff s review of the Project, no special circumstances exist that would create a reasonable possibility that granting a CUP and PCN to sell alcohol from their existing store s location will have a significant effect on the environment. Therefore, the proposed Project qualifies for the exemption under CEQA Guidelines Section 15301 and no further environmental review is required. 7

Elk Grove Planning Commission Total Wine & More EG-15-001 March 19, 2015 Page 8 Recommended Motion Should the Planning Commission agree with staff s recommendation, the following motion is suggested: I move that the Planning Commission adopt a resolution recommending that the City Council find the Total Wine & More CUP Project (EG-15-001) exempt from CEQA pursuant to State CEQA Guidelines Section 15301 and approve the Total Wine & More Project (EG-15-001), subject to the findings and conditions of approval contained in the draft resolution. Attachments 1. Draft Planning Commission Resolution Exhibit A Project Description Exhibit B Project Plans Exhibit C Conditions of Approval 2. Police Department Letter dated May 23, 2013 8

RESOLUTION NO. March 19, 2015 A RESOLUTION OF THE CITY OF ELK GROVE PLANNING COMMISSION RECOMMENDING CITY COUNCIL APPROVAL OF A CONDITIONAL USE PERMIT AND DETERMINATION OF PUBLIC CONVENIENCE OR NECESSITY FOR TOTAL WINE & MORE PROJECT NO. EG-15-001 7707 LAGUNA BLVD., SUITE 140 APN: 116-1160-004 WHEREAS, the Planning Department of the City of Elk Grove received an application on January 8, 2015 from the California Fine Wines and Spirits, LLC, dba Total Wine & More (the Applicant) requesting a Conditional Use Permit and Determination of Public Convenience and Necessity for off-site sale of beer, wine, and liquor and limited on-site tasting of beer and wine for a vacant tenant space located at 7707 Laguna Blvd, Suite 140 (Total Wine & More (EG-15-001), herein after the Project); and WHEREAS, the proposed Project is located on real property in the incorporated portions of the City of Elk Grove more particularly described as APN: 116-1160-004; and WHEREAS, the City determined that the Project is subject to the California Environmental Quality Act; and WHEREAS, Section 15301 (Existing Facilities) of the California Code of Regulations, Title 14, Chapter 3 (State CEQA Guidelines) State exempts projects that involve negligible or no expansion of an existing use; and WHEREAS, the Planning Commission held a duly noticed public hearing on March 19, 2015 as required by law to consider all of the information presented by staff, information presented by the Applicant, and public testimony presented in writing and at the meeting. NOW, THEREFORE, BE IT RESOLVED, that the Planning Commission of the City of Elk Grove recommends that the City Council find that no further environmental review is required under the California Environmental Quality Act for the Project pursuant to State CEQA Guidelines section 15301 based upon the following finding: CEQA Finding: No further environmental review is required under the California Environmental Quality Act pursuant to State CEQA Guidelines section 15301. Evidence: A Categorical Exemption Section 15301 (Existing Facilities) exempts projects that involve negligible or no expansion of an existing use. This project consists of the sale of alcoholic beverages within an existing commercial shopping center. Total Wine & More neither proposes to physically expand the existing commercial tenant space, nor does their use represent a significant expansion of the site s current commercial use. Based on staff s review of the project, no special circumstances exist that would create a reasonable possibility that granting a CUP and PCN to sell alcohol from this location will have a significant effect on the environment. Therefore, the proposed project qualifies for the Planning Commission Resolution 2015-X March 19,, 2015 Page 1 of 7 9

exemption under CEQA Guidelines Section 15301 and no further environmental review is required. AND, BE IT FURTHER RESOLVED, that the Planning Commission of the City of Elk Grove recommends that the City Council of the City of Elk Grove approve the Conditional Use Permit and Letter of Public Convenience or Necessity for the Total Wine & More Project (EG-15-001) as described in Exhibit A and illustrated in Exhibit B, subject to the Conditions of Approval provided in Exhibit C, all incorporated herein by this reference and based upon the following findings: Conditional Use Permit Finding: The proposed use is consistent with the General Plan and all applicable provisions of Zoning Code. Evidence: The Elk Grove Zoning Code allows for liquor stores within the SC zone subject to the approval of a Conditional Use Permit. Staff has analyzed Total Wine & More s proposal and determined that it is consistent with the development provisions established in the Title 23, Zoning of the Elk Grove Municipal Code. Since Title 23 establishes land use provisions that enable the General Plan s policies to be achieved, this project can be found consistent with the goals, objectives and policies of the General Plan. Finding: The establishment, maintenance or operation of the use applied for will not, under the circumstances of the particular case (location, size, design, and operating characteristics), be detrimental to the health, safety, peace, comfort, or general welfare of persons residing or working in the neighborhood of such use, or general welfare of the City. Evidence: As proposed, the Applicant s sale of alcohol within an existing commercial tenant space will not be detrimental to the health, safety, peace, comfort, or general welfare of persons residing or working in the neighborhood of Total Wine & More, or general welfare of the City. The closest playground (Zimbelman Park) is located over 1,000 feet to the northeast behind the Parkside at Laguna II residential subdivision. The nearest school (Harriett Eddy Middle School) is located approximately 1,500 feet south of the site behind the Village Crossing Apartment Complex. Neither of these would be considered directly accessible from the Project site. Additionally, Total Wine & More will implement security measures at the store to ensure the safe sale of alcohol, including the use of security cameras and training the employees. Total Wine & More also requires employees to undergo extensive training and to participate fully in the store s strict operational policies regarding the sale of alcohol. Further, the Elk Grove Police Department has stated that it does not have a public safety related objection to approval of the Project. Letter of Public Convenience or Necessity Finding: The proposed use is compatible with neighborhood character. Evidence: The application was routed to the Elk Grove Police Department, the Code Enforcement Department, and the Building Department. No violations against the property or Applicant were identified that would discourage the issuance of a Type 21 and Type 42 alcohol license for Total Wine & More. The Project site is located within a commercial area, and is near other commercial uses. Therefore, the sale of alcohol for off-site consumption and limited sampling of beer and wine at this location is compatible with the uses in the surrounding area. 10 Planning Commission Resolution 2015-X March 19,, 2015 Page 2 of 7

Finding: The proposed use will be of benefit to the neighborhood. Evidence: Because the location is within an existing commercial shopping center which does not contain an existing liquor store, the sale of alcohol will increase convenience to shoppers. Total Wine & More facilities typically carry a wide variety of distilled liquor, wine, beer, and malt-based wine coolers. The national chain currently has over 110 stores in 16 states, including 12 within the State of California. The stores are designed to be large, clean, and comfortable to provide an up-scale shopping environment. The products are tailored toward higher-income customers. The stores are designed to be safe and require that employees undergo extensive training to increase both product knowledge and to prevent sale of alcoholic beverages to minors. The foregoing Resolution of the City of Elk Grove was passed and adopted by the Planning Commission on the 19 th day of March, 2015, by the following vote: AYES: NOES ABSENT: ABSTAIN: ATTEST: Sandy Kyles, PLANNING SECRETARY George Murphey, CHAIR of the PLANNING COMMISSION Planning Commission Resolution 2015-X March 19,, 2015 Page 3 of 7 11

Exhibit A Project Description PROJECT DESCRIPTION The proposed Project, Total Wine & More, involves a Conditional Use Permit (CUP) and a Determination of Public Convenience or Necessity (PCN) to allow for sale of beer, wine, and liquor for off-site consumption (Type 21 license), as well as a permit for on-site consumption of beer and wine in three (3) separate sanctioned-off areas for limited wine and beer tasting (Type 42 license) within an existing 21,332 square foot retail store. Conditional Use Permit (CUP) Chapter 23.26 of the Elk Grove Municipal Code classifies a retail establishment which has fifty percent (50%) or more of the shelving or gross floor area devoted to the public display and sale of alcoholic beverages for off-site consumption as a liquor store. According to Chapter 23.27, Table 23.27-1 (Allowed Uses and Required Entitlements for Base Zoning Districts) this use requires approval of a CUP in the SC (Shopping Center) zoning district. The CUP allows the approving authority to evaluate individual uses that are supported by the General Plan, though due to certain operating characteristics or site development features may need further review to ensure their compatibility with surrounding development and uses. Determination of Public Convenience or Necessity (PCN) The State Department of Alcoholic Beverage Control (ABC) requires an applicant to obtain a PCN from the affected jurisdiction when the establishment is located within a high crime area or when the census tract is deemed over-concentrated by ABC s standards. According to ABC, two licenses are allowed in this census tract before it is considered to be overconcentrated. Since ten active licenses exist (this store would be the eleventh), this location is deemed over-concentrated by ABC. 12 Planning Commission Resolution 2015-X March 19,, 2015 Page 4 of 7

Exhibit B Project Exhibits Planning Commission Resolution 2015-X March 19,, 2015 Page 5 of 8 13

LOCK LOCK 14

Verification (date and Signature) 15 Exhibit C Conditions of Approval Conditions of Approval Timing/ Implementation Enforcement/ Monitoring On-Going 1. Development and operation of the proposed Project shall be consistent with the Project Description and Project Plans as provided in Exhibits A and B, incorporated herein by this reference. Deviations from the approved plans shall be reviewed by the City for substantial compliance and may require amendment by the appropriate hearing body. 2. The Applicant/Owner or Successors in Interest (hereby referred to as the Applicant) shall hold harmless the City, its Council Members, its Planning Commission, officers, agents, employees, and representatives from liability for any award, damages, costs and fees incurred by the City and/or awarded to any plaintiff in an action challenging the validity of this permit or any environmental or other documentation related to approval of this permit. Applicant further agrees to provide a defense for the City in any such action. 3. This action does not relieve the Applicant of the obligation to comply with all laws, statutes, regulations, and procedures. 4. Beer, malt beverages, and wine coolers in containers of 16 oz. or less cannot be sold by single containers from a refrigerator or cooler, but may be sold from non-refrigerated shelves. If beer, malt beverages, or wine coolers in containers of 16 oz. or less are sold from refrigerators or coolers they must be sold in manufacturer pre-packaged multi-unit quantities. 5. On-Sale consumption of wine or beer by permission of the ABC Type 42 licenses shall only occur between the hours of 10:00 AM and 9:00 PM. 6. The areas sectioned off for Type 42 On-Sale consumption shall be set up in a designated area and separated by a temporary barrier. A sign will be displayed stating only individuals over the age of 21 years old are permitted in these areas. On-Going Planning On-Going Planning On-Going Planning Planning Commission Resolution 2015-X March 19,, 2015 Page 6 of 8

Verification (date and Signature) Exhibit C Conditions of Approval Conditions of Approval Timing/ Implementation Enforcement/ Monitoring 7. All Type 42 On-Sale beer or wine consumption shall be conducted as tastings only. A single tasting of wine shall not exceed one ounce. No more than three tastings of wine shall be provided to any person on any day. The tasting of beer is limited to eight ounces of beer per person per day. 8. Only one type of alcohol (beer or wine) may be served in a designated tasting area at one time. Multiple tastings can occur in each of the three designated tasting areas simultaneously, however only one type of alcohol may be served in each one. 9. A person under 21 years of age shall not serve, or be served, wine or beer within the establishment. 10. Persons serving beer or wine shall not consume any alcohol while operating the tasting area. 11. Consumers shall not be permitted to leave the designated tasting areas with an open container of alcohol. 12. The cashier area shall be equipped with either a CCTV camera system with recording and playback capability or a 35mm demand camera to discourage criminal acts and aid in criminal apprehension. The recorder should be housed in a secure room away from the cash register area. 13. Total Wine & More corporation shall implement robbery, theft and crime prevention programs at this location. Applicant is strongly encouraged to participate in the Elk Grove Police Department s Shoplifting Program. If proper crime prevention standards are not implemented or utilized effectively, the Police Department will reserve the right to require a security guard on site. Planning Commission Resolution 2015-X March 19,, 2015 Page 7 of 8 16

17 Exhibit C Conditions of Approval 14. Signage shall be posted on the property to discourage loitering and alcohol consumption in the parking lot, citing the authority of the penal code section regarding trespassing, and municipal code sections. Potential loitering problems will be minimized by an active concerned attitude projected by store personnel. If loitering does become a problem on the site, the Police Department will reserve the right to require a security guard on site. Planning Commission Resolution 2015-X March 19,, 2015 Page 8 of 8

City of Elk Grove Police Department February 2, 2015 Nathan Anderson, Project Planner City of Elk Grove Planning Department 8401 Laguna Springs Way Elk Grove, CA 95758 Re: Application for CUP and PCN (Total Wine & More, 7707 Laguna Boulevard Ste. 140) Dear Mr. Anderson: This letter is a response to the application for a Conditional Use Permit (CUP) and finding of Public Convenience and Necessity (PCN) submitted by Total Wine & More at 7707 Laguna Boulevard, Suite 140. Per your request, I have reviewed the application, and the crime statistics for the surrounding area. The most recent statistical data that we have compiled is from calendar year 2013. The data reflects that the area encompassing the applicant s site represented the second highest crime area within the City. Elk Grove is separated into 26 subsectors for crime reporting purposes. The applicant is located is subsector 2102. Annually, we compile the crime statistics in the following eight areas: Homicide Robbery Burglary Motor Vehicle Theft Forcible Rape Larceny Arson Aggravated Assault As you can see from the chart attached, the 2102 subsector had 355 crimes reported in 2013. Of those, 292 were crimes related to larceny and 24 were related to burglary. According to our information, the census tract where the applicant is located has eight active Off-Sale licensed retail establishments (Types 21 and 20), and twenty-one active On-Sale licensed retail establishments (Types 41, 42, 47 and 86). The California Department of Alcohol Beverage Control views more than two Off-Sale licenses and more than three On-Sale licenses in this census tract as over population. The applicant has advised that this establishment would consist of a 21,332 square foot retail store designed to sell beer, wine and spirits for off-site consumption by permission of an ABC Type 21 license. The applicant also intends for the on-site consumption of beer and wine in three separate and sectioned off areas, by permission of three separate ABC Type 42 licenses. Subject to the conditions which follow, the Elk Grove Police Department has determined that there is no public safety reason to oppose a finding of Public Convenience and Necessity and the associated ABC license applications. As to the application for the Conditional Use Permit, the Police Department recommends the following conditions: 1. Beer, malt beverages, and wine coolers in containers of 16 oz. or less cannot be sold by single containers from a refrigerator or cooler, but must be sold in manufacturer pre-packaged multi-unit quantities. 18 REFER ALL CORRESPONDENCE TO: Elk Grove Police Department 8400 Laguna Palms Way Elk Grove, CA 95758

Page 2 of 2 2. On-Sale consumption of wine or beer by permission of the ABC Type 42 licenses shall only occur between the hours of 10:00 AM and 9:00 PM. 3. The areas sectioned off for Type 42 On-Sale consumption shall be set up in a designated area and separated by a temporary barrier. A sign will be displayed stating only individuals over the age of 21 years old are permitted in these areas. 4. All Type 42 On-Sale beer or wine consumption shall be conducted as tastings only. A single tasting of wine shall not exceed one ounce. No more than three tastings of wine shall be provided to any person on any day. The tasting of beer is limited to eight ounces of beer per person per day. 5. Only one type of alcohol (beer or wine) may be served in a designated tasting area at one time. Multiple tastings can occur in each of the three designated tasting areas simultaneously, however only one type of alcohol may be served in each one. 6. A person under 21 years of age shall not serve, or be served, wine or beer within the establishment. 7. Persons serving beer or wine shall not consume any alcohol while operating the tasting area. 8. Consumers shall not be permitted to leave the designated tasting areas with an open container of alcohol. 9. The cashier area shall be equipped with either a CCTV camera system with recording and playback capability or a 35mm demand camera to discourage criminal acts and aid in criminal apprehension. The recorder should be housed in a secure room away from the cash register area. 10. Total Wine & More corporation shall implement robbery, theft and crime prevention programs at this location. Applicant is strongly encouraged to participate in the Elk Grove Police Department s Shoplifting Program. If proper crime prevention standards are not implemented or utilized effectively, the Police Department will reserve the right to require a security guard on site. 11. Signage shall be posted on the property to discourage loitering and alcohol consumption in the parking lot, citing the authority of the penal code section regarding trespassing, and municipal code sections. Potential loitering problems will be minimized by an active concerned attitude projected by store personnel. If loitering does become a problem on the site, the Police Department will reserve the right to require a security guard on site. 19