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HomeMy WebLinkAboutF-2a - Request to Server Beer and Wine - Balboa Pier ConcessionTO: FROM: SUBJECT: Background CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER May 9, 1983 MAYOR AND CITY COUNCIL City Manager REQUEST TO SERVE BEER AND WINE - PIER CONCESSION (3V COUNCIL AGENDA ITEM JqO —F -2(a) BY THE CITY COUNCIL CITY OF NEWPORT BEACH MAY 0 91983 BALBOA� a--� The Concession Agreement for the Balboa Pier Concession (Ruby's) contains a section which reads as follows: "(b) The consumption of alcoholic beverages on the pier is prohibited. Concessionnaire shall not seek a license to sell alcoholic beverages on the pier." Ruby's has been open for business since December 10, 1982. According to the terms of the agreement, the concessionnaire is required to pay to the City a consideration of $1,000 per month for the months of June, July, August and September, plus 5.5% of the operation's gross annual receipts during the entire year. To date the City has realized a total of $3,248 from the concession operation. Additionally, and probably more importantly, the establishment of the con- cession operation removed a public nuisance from the pier and provided in its place an additional service to the public in the Balboa Pier area. Public response to the concession has been overwhelmingly positive. Request to Serve Beer and Wine With Meals Attachment 1 to this staff report is a letter from Douglas Cavanaugh, the concessionnaire, requesting permission to serve beer and wine with meals. This would require, of course, that application be made for an Alcoholic Beverage Control license. As noted in the letter from Mr. Cavanaugh, the introduction of beer and wine sales would help to promote certain aspects of the business, and in particular, the dinner trade. It is stressed in the letter that the intent of the request is to provide customers with beer or wine as a complement to their meal and not to turn Ruby's into a "drinking establish- ment". The concessionnaire promises strict supervision of sales and consumption, and stipulates that no alcoholic beverages will leave the premises. TO: MAYOR AND CITY COUNCIL - Page Two Position of the Police Department Attachment 2 is a memorandum from the Police Department regarding the subject request. The Department's position is that the issuance of another liquor license in the area would add to existing alcohol-related problems. The Department's position is not aimed specifically at Ruby's but rather is consistent with their position generally on the Municipal Code Provisions on issuance of new liquor licenses. Municipal Code Section 10.04 prohibits consumption of alcoholic beverages "...on any ... public pier". According to the City Attorney, approval of the concessionnaire's request would not be in violation of the Code since all sales and consumption would be confined to the premises. Conclusion It is the position of this office that the Balboa Pier concession operation provides a worthwhile service to the public. It is felt that the issuance of approval to pro- vide on -premises -only sale of beer and wine, subject to certain terms and conditions, could augment the concession business without creating undue problems. The concessionnaires have shown themselves to be conscientious both in their approach to business and in their compliance with commit- ments made to the City. Suggested Course of Action It is suggested that the request of Ruby's be approved subject to the following conditions: 1. Approval limited to sales of beer and wine. 2. No alcoholic beverages permitted to leave the premises. 3. Strict supervision of all sales and assurance of control by the concessionnaire over ex- cessive consumption. 4. No pre-packaged or carry -out sales of beer and wine (six packs, etc.) 5. Review of the operation 60 days following the initiation of beer and wine sales, to determine the actual impact and level of concessionnaire compliance. TO: MAYOR AND CITY COUNCIL - Page Three It is believed that the above terms and conditions should provide adequate safeguards and permit recision of the Council's approval should such an action be deemed warranted. ROBERT L. WYNN City Manager RLW;GJB;mm attachments I ATTACHMENT 1 Douglas S. Cavanaugh 114 Garnet St, Balboa Island, Calif, 92662 April 1, 1983 Mr. Gerry Bolint Assistant to the City Manager 3300 Newport Boulevard P.O. Box 1768 Newport Beach, CA 92663-3884 Dear Gerry, Pursuant to our conversation regarding Ruby's request to the City Council to allow our application for a beer and wine license, here is a summary of reasons why we feel Ruby's is well suited for such a license and a definition of how we would properly control its applica- tion. The area surrounding the Balboa pier is steadily improving and Ruby's is proud to be a part of this redevelopment. What was onaea ramshackle eyesore is now an attractive restaurant providing service for the local community as well as the tourist trade. We are finding that many customers are requesting a glass of wine or beer with their meal which has prompted this request. Ruby's would like to provide this service to assure their continued patronage and to stimulate our currently slow dinner business. Please understand that the intent of this request is to provide our customers with a bev- erage to complement their meal or snack and not to turn Ruby's into a drinking establishment. Ruby's provides a very neat and clean atmosphere which attracts a very desirable clientele. This fact immediately eliminates some of the problems associated with liquor service. Either myself, my partner, or a manager would be on duty during operating hours to supervise all beverage service. Absolutely no beer or wine would be allowed to leave the premises under any circumstances, We would exercise strict controls on excessive consumption and would implement a careful I.D, check for minors. We appreciate the city's consideration of our request and invite any member of the city council or staff who has not been to Ruby's to come down and examine our facility. We would be happy to provide a complete tour and answer any questions they may have, Sincerely, Dou S. Cavanaug 5 ATTACHMENT 2 CITY OF NEWPORT BEACH POLICE DEPARTMENT April 15, 1983 TO: Assistant to the City Manager FROM: Investigator Parker SUBJECT: REQUEST TO SERVE BEER AND WINE - BALBOA PIER CONCESSION In response to your memorandum dated April 7, 1983, regarding Mr. Cavanaugh's request for sales of beer and wine, it is the Police Department's feeling the request should be denied. As you probably know, the Balboa Pier area has historically been heavily congested, with several restaurants, bars and a liquor store which sell alcoholic beverages. Particularly during the summer months, the crime rate experiences a serious climb. Many of these crimes can be attributed to alcohol related violations and over consumption. The Police Department feels the issuance of another liquor license in the area would only hinder our enforcement struggle. R. Parker, Investigator Vice and Intelligence Section