Title
Planning and Building Department, Economic Development Unit, recommending the Board receive a presentation by staff and provide conceptual approval to amend Title 5 of County Code - Business Taxes, Licenses and Regulations to add a new chapter 5.60 to allow for establishment of Entertainment Zones within unincorporated El Dorado County.
FUNDING: N/A
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DISCUSSION / BACKGROUND
Senate Bill 969, effective January 1, 2025, authorizes California cities and counties to create designated "entertainment zones" where individuals, aged 21 and over, may legally possess and consume open containers of alcoholic beverages within a prescribed geographic boundary and purchased from licensed participating businesses. The goal of this legislation is to stimulate local economies, enhance cultural and social activities, and promote downtown vibrancy through well-regulated, inclusive public spaces. County Ordinances adopted under this legislation must consider the following for each approved Entertainment Zone:
• Geographic Boundaries
• Days and Hours of Operation
• Allowable Open Alcoholic Beverage Containers
• Alcohol Type
• Signage
• Reporting Requirements
The request for the Board to consider an Entertainment Zone Ordinance comes in response to the Economic Development Division of the Planning and Building Department receiving and evaluating a request for the potential formation of an Entertainment Zone in El Dorado Hills Town Center to enhance the visitor experience. Although the El Dorado Hills Town Center has special events that serve alcohol, current state Alcohol Beverage Control regulations have created challenges. As an example, during the center's outdoor concert series, patrons can purchase alcohol from one of the center's restaurants, but cannot take it "off-site" from the restaurant's premises. This does not give flexibility to allow patrons to sit by the concert stage to drink alcoholic beverages purchased at the restaurants. The only option is to bring in a food truck or similar vendor in the concert area to serve those patrons. This does not support existing businesses in the center. Adoption of the Entertainment Zone and implementation of the regulations allows the flexibility to support existing, local businesses and provide more options for patrons.
What SB 969 Does
SB 969 updates the Alcoholic Beverage Control Act by broadening the definition and scope of entertainment zones. Originally limited to San Francisco, the law now allows any California city, county, or city-and-county to establish such zones beginning January 1, 2025. These zones permit public consumption of alcoholic beverages on streets, sidewalks, and public rights-of-way, typically adjacent to special events.
Key Requirements for Local Governments
Local jurisdictions must meet several conditions before creating or modifying an entertainment zone:
• Notify local law enforcement and request feedback on proposed boundaries, operating hours, and safety considerations.
• Define zone boundaries and hours through a local ordinance.
• Implement a system to identify individuals 21+, ensuring alcohol is not provided to minors.
• Review the zone every two years, producing reports that must be available to the Department of Alcoholic Beverage Control (ABC) upon request.
Rules for Alcohol Sales and Consumption
SB 969 sets specific conditions for alcohol consumption within entertainment zones:
• Only nonglass, nonmetal containers may be used for open beverages.
• Alcohol consumed in the zone must be purchased from licensed businesses within the zone.
• Outside alcohol is prohibited.
The Economic Development Division is also aware that there have been inquires to creating Entertainment Zones for other areas of the County, such as within the community of Georgetown during community celebrations, however no formal request has been made.
Economic Development Division staff have been reviewing other jurisdictions within California that have adopted Entertainment Zone Ordinances (e.g. City of Sacramento, City of Redding, City of Auburn) to identify best practices and get an understanding of the level of effort. Economic Development Division staff have initiated contact with the County Sheriff’s Office to understand their position on the matter and to address any areas of concern. Should the Board direct the Economic Development Division to prepare an Ordinance to allow for Entertainment Zones within El Dorado County, staff will collaborate with the Sheriff's Office and conduct outreach to local businesses and community members to inform Entertainment Zone logistics and ensure alignment with public safety and operational needs. In accordance with SB 969, a biennial review of any established zone's operation will be conducted to evaluate impacts on public safety, health, and economic activity.
Economic Development Division staff would need to explore the appropriateness of establishing an application and fee structure for evaluation of proposed requests for Entertainment Zones within the County.
Environmental Review
The potential adoption of an Entertainment Zone Ordinance would be exempt from environmental review pursuant to California Environmental Quality Act (CEQA) guidelines 15060(c)(2) and 15061(b)(3) as the passage of the ordinance and will have no foreseeable direct or indirect physical change in the environment.
ALTERNATIVES
The Board could decline to pursue an Entertainment Zone Ordinance at this time or provide staff alternate direction.
PRIOR BOARD ACTION
N/A
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel, Chief Administrative Office, Sheriff's Department
CAO RECOMMENDATION / COMMENTS
Approve as recommended. If approved, all costs associated with the Entertainment Zones, including enforcement costs, must be covered by the fees charged.
FINANCIAL IMPACT
There is no change to Net County Cost associated with this Conceptual Approval item. The formation of the Entertainment Zone Fee Structure and Application could offset staff time costs associated with evaluating proposals. Funding for the staff time associated with the Entertainment Zone Ordinance will be included in the Fiscal Year 2026-27 Budget.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT
Thriving Economy - Attract and retain businesses, stimulate entrepreneurship, and diversify the local economy. Emphasis is placed on creating a business-friendly environment, streamlining the permit process, supporting small businesses, and leveraging economic development incentives.
CONTACT
Karen L. Garner
Director, Planning and Building