(a) 
Any person whose application for an on-sale or off-sale alcohol license is required by the Alcoholic Beverage Control Board of the State of California ("ABC") to be subject to a determination of public convenience or necessity ("PCN determination") by the City of Davis, shall apply to the City of Davis for a determination of whether public convenience or necessity would be served by the granting of such license. Such application shall be made on forms provided by the city and contain such information required by the city.
(b) 
The application shall be filed at the community development and sustainability department and shall be accompanied by payment of a fee to be established by resolution of the city council calculated to offset the costs of processing applications. No application shall be deemed complete, nor shall it be reviewed, without payment of the application fee.
(c) 
The PCN application shall include a written statement from the applicant demonstrating, by substantial evidence, that the public convenience or necessity would be served by the issuance of a license from the ABC.
(Ord. 1913 § 1, 1997; Ord. 2572 § 26, 2020)
(a) 
Upon receipt of an application for a PCN determination, the community development and sustainability department shall refer such application to the police department, code compliance coordinator, the building division, and any other city departments that the community development and sustainability department believes appropriate for review and comment. The director may request from the applicant any additional pertinent information regarding the applicant, the proposed license, or the applicant premises. All departments shall submit their findings, comments, or recommendations to the director.
(b) 
The police chief or designee shall determine whether there are existing problems regarding criminal activity at the applicant premises or in the area surrounding the applicant premises. Also, the police department shall comment on whether issuance of the license would tend to create a law enforcement problem. If the department determines that law enforcement problems exist, or that such problems would be created in the event an alcoholic beverage license is issued, a written report of the problems and a recommendation shall be given to the director.
(c) 
The community development and sustainability department shall determine whether the applicant premises are located in the appropriate land use designations and have received all required entitlements to permit the type of alcoholic beverages sales described in the application. No PCN determination shall be made if the department determines that the applicant premises are not within the appropriate land use designation or do not have all necessary land use entitlements.
(d) 
The community development and sustainability department, in conjunction with the code compliance coordinator, shall determine whether there are pending code enforcement actions regarding the applicant premises. If it is determined that there is a pending or ongoing code enforcement action involving the applicant premises, no PCN determination may be made by the department until the investigation is completed and all code issues are resolved.
(e) 
Any other city department that has received a request from the community development and sustainability department to review the application, shall file its comments and, if appropriate, its recommendation on the application with the department.
(f) 
The community development and sustainability department shall contact the ABC to determine whether any protests were lodged with the ABC in relation to the applicant's request for a license from the ABC.
(g) 
Based on an evaluation of all timely submitted written findings, comments, and the factors that may be considered, as set forth in Section 40.40.030, the director shall make a determination on whether public convenience or necessity will be served by the ABC's issuance of an alcoholic beverage license for the applicant premises and whether to issue or deny a letter of public convenience or necessity.
(Ord. 1913 § 1, 1997; Ord. 2390 § 2, 2012; Ord. 2572 § 26, 2020)
(a) 
In all cases in which an applicant applies for a PCN determination, the director may exercise their discretion to issue or deny issuance of a letter of public convenience or necessity. In exercising their discretion, the director shall consider the following factors:
(1) 
The type of proposed use by the applicant;
(2) 
Whether the proposed use will be detrimental to the health, safety and welfare of the community;
(3) 
Whether the use would enhance the economic viability of the area in which it is proposed to be located;
(4) 
The extent of support or opposition to the proposed license from members of the community;
(5) 
The number of licenses within a one-mile radius of the proposed licensed location;
(6) 
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;
(7) 
The background and the history of the applicant, including the nature and extent of problems on any premises where he or she has operated a licensed premises in the past;
(8) 
Whether the applicant has ever been convicted of any offense involving moral turpitude or any offense related to the sale or use of alcoholic beverages;
(9) 
How close the proposed establishment will be to a residential neighborhood, place of worship, or school;
(10) 
Whether there is a history of police or crime-related problems in the area proposed for a license; and
(11) 
Whether the proposed license would enhance recreational or entertainment opportunities in the area.
(b) 
The director may determine that the public convenience or necessity will be met and the health, safety or welfare of the community will be promoted only if certain conditions are imposed upon the operations of any licensee. Those conditions shall be placed in an operating agreement to be entered into between the City of Davis and the licensee.
The conditions may cover any matter relating to the privileges to be exercised under the license. If a letter is issued with conditions applied, it shall specifically set forth that the public convenience or necessity is served only if the conditions set forth in the letter are met by the applicant. Examples of such conditions can be, but are not limited to:
(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 seven hundred fifty milliliters;
(3) 
Wine coolers shall not be sold in quantities of less than factory packs of four;
(4) 
Distilled spirits shall be sold in containers of at least two hundred milliliters;
(5) 
No wine shall be sold with an alcohol content greater than fifteen percent by volume;
(6) 
For off-sale licenses only, 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 in their original multi-container package, with the exception of food and beverage containers with a corporate logo or business name when sold in conjunction with food and nonalcoholic beverages;
(7) 
For off-sale licenses only, 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;
(8) 
Restrictions as to hours of sale;
(9) 
Display of signs may be regulated;
(10) 
Types and strengths of alcoholic beverages to be served where such types or strengths are otherwise limited by law;
(11) 
The personal conduct of the licensee shall not conflict with the implementation of any conditions imposed on the licensee or the licensed premises.
(c) 
The department shall provide a comment period of no less than ten calendar days prior to final approval of a letter of public convenience and necessity, beginning on the date the public notices are mailed. The purpose of the comment period is to enable the public to bring comments or questions to the attention of the department. If the department receives substantive comments or information which establishes that the application should not be approved administratively, the department shall either deny the application or, if requested by the applicant and upon submittal of the applicable fee, schedule a public hearing before the planning commission to consider the application.
(d) 
The final PCN determination shall be reduced to writing by the director who will author a PCN determination stating whether the director finds public convenience and necessity will or will not be served by the issuance of a license from the ABC. The written determination shall be served by mail upon the applicant and the ABC within fifteen business days of the decision of the director.
(e) 
No letter of public convenience or necessity shall be issued by the director pursuant to this article unless the applicant agrees, in writing, that if the ABC issues a license to sell alcoholic beverages, the license will be subject to all conditions imposed as part of the PCN determination at all times the license is in use and in effect.
(Ord. 1913 § 1, 1997; Ord. 2390 § 2, 2012; Ord. 2572 § 26, 2020)
(a) 
A PCN determination in support of the issuance of a license from the ABC is only valid for one year from the date of the director's action and the PCN determination shall so state. If no license to sell alcoholic beverages has been issued to the applicant for the applicant premises, within one year of issuance of a favorable PCN determination, the city's PCN determination shall be deemed withdrawn without the need for further action by the director or the applicant, and the applicant must reapply if he or she seeks another PCN determination.
(b) 
Except as provided in Business and Professions Code Section 23958.4, the PCN determination is not transferable to any other applicant or proposed licensee. Unless permitted by Business and Professions Code Section 23958.4, any proposed licensee for the same premises must submit a new application and follow the procedures for issuance of a PCN determination in this article. Nothing in this article precludes the city from protesting the issuance of a license from the ABC pursuant to other sections of the Alcoholic Beverage Control Act, including, but not limited to, Section 23958.
(Ord. 1913 § 1, 1997; Ord. 2572 § 26, 2020)
The decision of the director regarding the PCN determination or related imposition of conditions may be appealed to the planning commission pursuant to Article 40.35 (commencing at Section 40.35.010). The request for appeal shall state the reasons why the person appealing the decision believes the director's PCN determination should be reversed or modified. At any proceeding before the planning commission, the applicant shall have the burden of demonstrating that public convenience or necessity will be served by issuance of an alcoholic beverage license, and that issuance of the license will not pose any threat to the health, safety or welfare of the community in which the licensed premises would be located.
(Ord. 1913 § 1, 1997; Ord. 2572 § 26, 2020)
In the event of a violation of any of the conditions imposed on an applicant or the applicant premises in accordance with this article, the planning commission may, after public notice and hearing, revoke any letter of public convenience or necessity issued regarding the applicant or applicant premises. Upon revocation, the applicant shall not continue to sell alcoholic beverages at the applicant premises. The determination of the planning commission shall become final ten days after the date of decision unless appealed to the city council. The revocation shall be reported to the ABC.
(Ord. 1913 § 1, 1997; Ord. 2572 § 26, 2020)