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HomeMy WebLinkAbout06 CUP 2011-16_~ . AGENDA REPORT MEETING DATE: OCTOBER 11, 2011 TO: PLANNING COMMISSION FROM: COMMUNITY DEVELOPMENT DEPARTMENT SUBJECT: CONDITIONAL USE PERMIT 2011-16 PROPERTY OWNER: TAE SUNG LEE & MYONG OK LEE 16617 HONEYBEE DRIVE TUSTIN, CA 92782 APPLICANT: ITEM # 6 7-ELEVEN, INC. 550 E. HOSPITALITY LANE, SUITE 300 SAN BERNARDINO, CA 92408 SUMMARY: A request by 7-Eleven, Inc. to establish and operate a 24-hour convenience store within a 2,952 square foot tenant space located at 13842 Newport Avenue #E. Sections 9232b10 and 9235c1 of the Tustin City Code require approval of a Conditional Use Permit for convenience stores. ENVIRONMENTAL: This project is Categorically Exempt pursuant to Section 15301 (Class 1) of the California Environmental Quality Act (CEQA). PC Report October 11, 2011 CUP 2011-16 Page 2 RECOMMENDATION: That the Planning Commission adopt Resolution No. 4185, approving Conditional Use Permit 2011-16 authorizing the establishment and operation of a 24-hour convenience store within a 2,952 square foot tenant space located at 13842 Newport Avenue #E. BACKGROUND: 7-Eleven, Inc. was established over eighty-three years ago and is a multinational corporation with over 6,970 stores within the United States and Canada. In addition there are over 28,900 7-Eleven owned or operated convenience stores worldwide. The 7-Eleven business model includes operating, franchising, and licensing convenience stores. The proposed 7-Eleven will be a corporate owned and operated facility. 7- Eleven is best known for its proprietary products which include the Slurpee, Big Gulp, and various other food and beverage products. Tustin City Code Sections 9232b10 and 9235c1 require approval of a Conditional Use Permit prior to establishment of a convenience store. Tustin City Code Section 9297 defines convenience store as any establishment fewer than 15,000 square feet in size where food, beverage, magazine, and auto-related items, or any combination thereof, are sold for off-site use and/or consumption. Site and Location The tenant space is located within a small commercial center comprised of five retail tenants (proposed tenant space, a T-shirt store, a Japanese restaurant, a pizza restaurant, and a yogurt shop) which total approximately 9,750 building square feet. The site is located on the southeast corner of the intersection of Newport Avenue and Walnut Street. The property is zoned Commercial General (CG) zoning district and has a General Plan Land Use designation of Community Commercial. Commercial uses are found to the north, south, and west of the project site along Newport Avenue while multiple family residential uses are immediately to the rear of the property (east) behind the commercial uses that line Newport Avenue. Tustin High School is located one block east approximately 450 feet from the project site and Lambert Elementary School is located two blocks to the northeast approximately 600 feet from the project site. PC Report October 11, 2011 CUP 2011-16 Page 3 DISCUSSION: Convenience Store 7-Eleven Inc, is proposing to operate a 24 hour convenience store within an existing 2,952 square foot tenant space. The space was previously occupied by a larger tenant, Blockbuster Video, and was recently subdivided to accommodate, T-shirts & More, a retail T-shirt sales store as well .as the proposed convenience store. The subject tenant space is located on the corner of the building adjacent to Walnut Street. Interior tenant improvements, which would not result in a change in the floor area, include the construction of a 1,682 square foot sales floor and associated operational areas. PC Report October 11, 2011 CUP 2011-16 Page 4 ._._ 1 t <:.-I k. _. t. _. __a._-... _... _.~.. 1 1 i _ _ ....___ 1 1 11 n.., .__. __ O~FlCSI ~ ~ _. ( .*_. ~~.. ~kUUEN I ArN s-man .: . __ ..... _ _ ., _.... Y::..:::... _ ` ilN.nRC~tP . ~.. „--I _.._ _ _._ ..a -. r-'. . _ .._.. rylau t ..... .. ... .... I A ~_ ~ I ........ ... , ~ .. CIX1,Ei '. ..... ...._._ ........ -.a ~ I ~........... ..._:. _-e F ~ . .... Site Plan Floor Plan Hours of Operation The 7-Eleven business model operates convenience stores 24 hours a day, 7 days a week unless otherwise restricted by local ordinance or conditional use permit. There are eve (5) existing 7-Eleven convenience stores within the City of Tustin which all operate 24 hours a day, 7 days a week and all of which have ABC Type 20 licenses for the sale of beer .and wine for off-site consumption. Other businesses within the City open 24-hours include pharmacies such as Walgreens, service stations, and the King Liquor Mart. Parking Convenience stores have the same parking requirements as general retail uses (1 parking stall per 250 square feet of gross floor area). The project site is within an existing retail center and replacing a former retail use. No impacts to parking are anticipated as a result of the proposed use. Alcohol Sales The project location does not currently meet the distance requirements contained within Section 9271dd(1) of the Tustin City Code to sell alcoholic beverages for off-site consumption. The subject property is located within 300 feet of residential properties (approximately 42 feet) and within 600 feet of schools (approximately 450 feet to Tustin High School and 600 to Lambert Elementary School). The applicant has been informed that the location does not meet the distancing requirements for alcoholic beverage sales. However, the applicant has noted their intention to sell beer and wine at the PC Report October 11, 2011 CUP 2011-16 Page 5 proposed location in the future and that they plan to submit an application for a code amendment to allow alcoholic beverages sales. At this time no alcoholic beverage sales are proposed in conjunction with the proposed convenience store. FINDINGS: In determining whether to approve the Conditional Use Permit for the proposed 24 hour convenience store, the Planning Commission must determine whether or not the proposed use will be detrimental to the health, safety, morals, comfort, or general welfare of the persons residing or working in the neighborhood, nor be injurious or detrimental to the property and improvements in the neighborhood of the subject property, or to the general welfare of the City of Tustin. A decision to approve this request may be supported by the following findings: 1. The proposed convenience store is consistent with the definition of a convenience store provided in Section 9297 of the Tustin City Code in that the convenience store is less than 15,000 square feet and sells food, beverages, magazines, and auto-related items, or any combination thereof, for off-site use and/or consumption. 2. The proposed use is a reputable business with over eighty three (83) years of experience in the convenience store industry. 3. The 7-Eleven, Inc. business model requires that all stores be open twenty-four (24) hours a day, seven (7) days a week. The five (5) existing 7-Eleven stares within the City of Tustin all follow these hours of operation. 4. The proposed use would provide for convenient shopping for nearby businesses and residents. 5. The project does not include sales of alcoholic beverages and the subject property does not meet the minimum distancing requirements contained within Section 9271 dd to sell alcoholic beverages for off-site consumption. 6. The building entrance is oriented towards Newport Avenue, therefore, no noise impacts are anticipated as all activities would occur within the building and access is provided along Newport Avenue. Rya wiontek Elizabeth A. Binsack Ass late Planner Community Development Director PC Report October 11, 2011 CUP 2011-16 Page 6 Attachments: A. Location Map B. Land Use Fact Sheet C. Submitted Plans D. Resolution No. 4185 ATTACHMENT A LOCATION MAP LOCATION MAP CUP 2011-16:13842 NEWPORT AVENUE PROJECT SITE 3 300' ~~~-~ G-,~~d' 500' ~, ~~ ~4 r ATTACHMENT B LAND USE FACT SHEET LAND USE APPLICATION FACT SHEET 1. LAND USE APPLICATION NUMBER(S): CONDITIONAL USE PERMIT 2011-16 2. LOCATION: NEWPORT AVE & WALNUT ST. 3. ADDRESS: 13842 NEWPORT AVE #E 4. APN(S):500-152-28 5. PREVIOUS APPLICATION RELATING TO THIS PROPERTY: CUP 86-6 & CUP 09-015 6. SURROUNDING LAND USES: NORTH: COMMERCIAL SOUTH: COMMERCIAL EAST: RESIDENTIAL WEST: COMMERCIAL 7. SURROUNDING ZONING DESIGNATION: . NORTH: PC-COMM SOUTH: C-1 EAST: R-3 2000 WEST: PC-COMM 8. SURROUNDING GENERAL PLAN DESIGNATION: NORTH: OLD TOWN COMMERCIAL SOUTH: COMMUNITY COMMERCIAL EAST: HIGH DENSITY RESIDENTIAL WEST: OLD TOWN COMMERCIAL 9. SITE LAND USE: A. EXISTING: RETAIL B. PROPOSED: RETAIL C. GENERAL PLAN: COMMUNITY COMMERCIAL D. ZONING: CG PROPOSED GP: SAME PROPOSED ZONING: SAME DEVELOPMENT FACTS: NO CHANGE TO EXISTING DEVELOPMENT 11. BUILDING AREA: 9,660 S.F. 12. TENANT SPACE: 2,952 S.F. ATTACHMENT C SUBMITTED PLANS r• GRESHAM I SAVAGE ATTORNEYS AT LAW ~•~. a ' s'".. ,.ni' .i~ .,~~ viz, ~ i ' ,;;i~ t n _.. ~~ t ~.,. . RECEIVED August 18, 2011 AUG 18 2011 COMMUNITY DEVELOPMENT BY: VIA HAND-DELIVERY Ms. Justina Willkom Principal Planner City of Tustin 300 Centennial Way Tustin, CA 92780 Re: CUP Application for Premises at 13842 Newport Avenue; 7-Eleven Stores, Inc. Justification Letter Dear Ms. Willkom: This office represents 7-Eleven Stores, Inc., and is submitting this letter on behalf of our client in support of its Conditional Use Permit ("CUP") application fora 24-hour convenience store located at 13842 Newport Avenue in Tustin, CA ("Premises"). 7- Eleven is an eighty-.three year old, multi-national corporation that operates, franchises and licenses more than 6,970 stores in the U.S. and Canada, as well as operating more than 28,900 7-Elevens and other convenience stores around the world. The Premises are located within the Commercial Retail (C-1) District, within a portion of a former Blockbuster Video store, which is currently vacant. Within this zone, convenience stores are a conditionally permitted use. The proposed 7-Eleven store will be consistent overall with the C-1 District, and will provide customers with fresh made items and the full range of convenience store products which will fill a gap that currently exists in the surrounding area. Currently, only one other convenience store operates within a llz- mile radius of the Premises, which is the Arco Station located at 14121 Newport Avenue. 7-Eleven caters to busy customers and uses a proprietary Retail Information System, which enables 7-Eleven stores to carry products that customers want to buy in a particular region. 7-Eleven is best known for its coffee, Slurpee and Big Gulp beverages, and hot dogs. /I~J~P J~,~ RIVERSIDE 3750 University Avenue, Suite 250 ~ Riverside, California 92501 -~ SA14 BERVARD~NO 550 East Hospitality Lane, Suite 300 San Bernardino, California 92408 Gresham5avage.com Ms. Justina Willkom August 18, 2011 Page 2 The operational characteristics of the proposed 7-Eleven will be appropriate for the location and convenience store use that is proposed, in relation to the surrounding residential areas. In addition, the proposed 7-Eleven convenience store use is consistent with the City's General Plan and Zoning Code. 7-Eleven would like to sell beer and wine at this location in the future. We are aware that this location currently does not meet the distance requirements from residential and school uses as set forth under Section 9217 (dd)(1)(B)). To that end, 7-Eleven plans to submit an application for a Code Amendment under separate cover in order to allow for the sale of beer and wine at this location. Please contact me if you have any questions or if I can provide any further information. _ ~erulrrer ivi. ~uentner, of GRESHAM SAVAGE NOLAN & TILDEN, A Professional Corporation JMG:tmo Proiect Descriation This Conditional Use Permit application is a request to allow for the operation of a 7- Eleven convenience store located at 13842 Newport Avenue in Tustin, CA. The 7- Eleven store will occupy the former Blockbuster Video building, which is currently vacant. The proposed 7-Eleven store location will consist of 2,940 square feet, which is only a portion of the existing building, and is proposed to operate 24 hours per day. No new construction or expansion of the existing building is proposed, although interior tenant improvements will include the construction of a demising wall for the 7-Eleven premises. The proposed square footage of the sales floor within the 7-Eleven store is approximately 1,682 square feet. This site does not meet the distance requirements set forth by Section 9217(dd) of the Tustin Municipal Code; accordingly, to allow for the future sale of alcohol for off-site consumption, an application for a Code Amendment will be submitted under .separate cover. 111111x-1111!• -- '?(171.7.1 0 w w V w Q' w 0 a ~ N fu ~ G rH r' ~> Om U FLOOR PLAN ~- -_--- _-__ _._-- _ _. NORTH \_ ENISTING CONDITIONS SHOWNIN THESECONSTRUCTIO D MENTS AFE BASED ONOFA 5 NO OR iNFOR TON PFOViDEp TO HFABY ~ iHEOWNEROR THEONMEFS DUL AUi CR IED REPRES E. HF 5 OTF LDV p HE ExiST G NS ~N MARON AND AFYHFAES NO FESPoNSiBM1ITY ORT E LLURA FLETE 55 NFO 0 HE GEN f. TO nLL ..lL1 AND TN[QyMSF~I x!MfOgTF ~ ISTIN _. -- ^AREK L. - . -. MONT. LO STRUC. U ... i5....- _~ -'~ ~ ~~.1 ~ .___r ~ , ..~ ;; ~- ~ ., I {ARIi15t 1\ I' I{I~;V'(:11 .rO.ASwn, SUhe 301 o<wo~.wwu`.~...mlz IrnsTanw i rnr.m.wez - II~ in I ~, I ELEYEII ~Y c L„ Z w ao ~~ ~~ N a °i I 1+3 4 '< w Z U ~ I V rz Cx~ a ~ ~ ~ m~ ~ n~ _~ Isar erax sroec Ro: loaelm ~ oawexr oA¢~. ne~os~l1 ~ cean[o er. cs pfVANY Bx. L' CUP FLOOR PUW 9 CTi A102 W f D O ~{~ O GS N V ~ TTG W t7 C ~. ~ ~ Q ff Om U IIWp-ol-dl ~tl>iBNhY 90t - _ _ . OBLZ6 V7 'NI15(11 ~• ! I 3tIN3AV 12i0dM3N L49f1 N8A97H-b I T Q last s 1 w 1 ~~ ~; _~:. I _- ~ ~ ~_ :; ~~~_ IL , --~1 i. i i. - -~i •. ~~ ~~;' ~, ~_.. -t - ---r,~- - ------------ •------~------ - 1 ~ 1 z~ a, ~~`~ 133tlIS 1t1NTIM tF k4 6 F, ..... ,~ r, n D Z Z m r r m m 0 N t m x -yi c~i fi ;s ~~~ , ~~,z DO~ r m~c~ =mz n~z m r r rn ,~ N N ~ V Q N O O .o 0 m v ~ wo :5.3 3 c z ~ ~ fit ~ '~ m r o R1 O "., 3 m IN 2 ~ ;' w N ~ ~ ~ PROJECT ADDRESS: pNA EIM,~Y STREET o a~ O ~ ~a ~ o ;~ 7-ELEVEN ~ y ~ -" ~ II m Z W 13842 NEWPORT AVENUE I ~ D011C0 8 SOUS,'nC. f SIGN PLAN la ~ ~ -'+ TUSTIN CA ~ (714) 254.0099 , _. SL LIC. # 435816 ~ C•10, 45, 61 m x z c~ x D Z Z m r r m m N N O ~o O m v WO ~3 i~ /~ 171 ~ ~ 111 r o 171 C "' v ;C rn ~'CJ=I ~ ~ m' W !A ~ ~ ~N ~ ID ~ PRO SECT DRE - A---~~ 1410 N. DALY STREET P$ o Z', I m ~ ~ ~ m s ~ ~ 7-ELEVEN ANAHEIM, ~ ~ ~ ~ ~ IA I n m z m ~ 13842 NEWPORT AVENUE TUSTIN CA ~ I ~ Donco & Sons, inc. S I G N PLAN (714)254-0099 p J , ST LIC.#435616 G10, 45, 61 , m x vJ ~~ rm =a ~ mn x c~ ~, m ~~ z_ ~~ mz z c~ z~ ~O ti Z ~ C a3 nm mz zN ~z z 69 0 -o 0 m mO ~3 3 ~ ~ c ~. C1 ~ ~ ~~ r c O a~ ~~ i rn I I A= A w N ~ C D PROJECT ADDRE33: - 1410 N. DFLLY STREET D o ~ ~ z y m ,r~r ANAHEIM, ~ ~ o c p ~ z°~N 7-ELEVEN i ~ DOI1C0 $ sOr18 ~ SIGN PLAN z Z m~ ~ 13842 NEWPORT AVENUE ~ I1C. Ipm fl'1 TUSTIN, CA I (714)254-0099 ST. LIC. p 435818 C-10, 45, 81 Z NEWPORT AVENUE l~ ~ 0 i ' N I r I Z - I ~ N ~ ~. T o c y~ O (/~ I ~ m~ N ~ I ~, L7 2 rn I ~ -I I I 150'-0" ~ wo I b ~L_~._._._._._._._._._._._._._._._._._._._~ 195'-0" C7 m0 ;< 3 3 Z C ~ ~ ~ rn ~. n c„ rn o m o -- v m z -+ I~ _' i a ~ IV ~ < ~I PROJECT ADDRESS: ANANEIMALY STREET ~ D~ O ~ p ~' ol;~a~ 7-ELEVEN ~ ~ 'SITE PLAN in ~ -" c' ~ Z m~ 13842 NEWPORT AVENUE Donco & Sons, Inc. I ° z l m ®m `' TUSTIN, CA -_ ___ (~1a~2sa-Dose ~ 5T LIC N 435616 ~ dl ~ C~i O, 45, 61 ... _._I - ___ _ -_ -_ -__. __! .-_ __--._._.__ __- ____-_ _- _ - T.. ~3r ~ :~~ '~ m ''~, ~' ~ `~ = ~~ „. ~ R~~ i i ~ ~. N'i~~ ~ ~' `E :i.. q~ ., ~ ~_~ ~~~~ ~. '~ ~.~~ 3 '~ per. •.:: .~ i~ ~.:~,; `~` ~t ^ / +.y ~ 7 ~~f ~ 'IE e '~ ~„ 33 ~i ~1 '= ~~.~. --l t' I ~~ Dt1ESS1NGi'S NARD...wE ~'rAI~,D• ~® TNAT'S W'NY ~~~ ~o~t~etefy, people dan't come As retailers, we have a responsibility to our customers and to our communities to ensure minors do not have access to age-restricted products in our stores... as EN~URIIVG ~0-MPLiAN~E WITN RE~ULATC?RY ~iEC~U1REN1EN1"~ We are pleased to announce the launch of a eamprehensive program specifically designed to help you and your employees ensure no minor is able to purchase alcohol or tobacco products from your store. Developed by the Presidents Leadership Council (see attached letter), the elements of the program are: iD ~ i-i0Y Do yc~ know what 27 looks like? Neither do we... so we've made the line a little clearer by c$han~°ging our„ ~ °,,;A~~(,j .Q~ry°c~~,~~tgoµg30. ~+5 SR i~Smlm~ ~ l~1~1~.S1-i'° ID `b~9'd "4»"'Sm~ Haw well we communicate our ID practices to our customers can help improve customer service... and there's no reason a serious message can't be delivered with humor. Your October POP kit came with r : ~ b: vault decals and a counter mat specifically designed to do both. we plan to .•°~; ~ ;~; your ID Zone POP regularly with messaging that will make the point... and maybe even bring a smile. ~11}(TI:i~Y s One thing that definitely does ~ bring a smile is a violation for allegedly selling alcohol or tobacco products to a minor. Those come with very Serious consequences. To help you anti your employees keep your age-restricted product selling skills sharp, you have the opportunity to have your store internally shopped once a month for about $8.t70 per shop. fee attached "shared cost" ~ ~ ~~ .i ~~~~~-~~ ~~~~~ ~ ~ -~~, ~.~ a ~:~~~~ ~~ 1`~'`~~°`~~ ~n~ for details. OOIi~~ i4~~ ~Ud1~11~N~S~ ~MN[}~~ Of course an ounce of prevention is worth a pound of cure, but what should you do if you receive a violation for atlegedly sailing alcohol or tobacco products to a minor? You`ll find prevention r~ cure resources in your ~~~<~~~~~: ~~,; ~~~~a,~ ~~.~~~~~~. a9~ a.,~~, ;~q~ ~~_~ti,~o We suggest you review and discuss the contents with yaur employees and keep the binder secure and readily available. O~Ii~E t'~F A,i AWAREN~S~ wlsl~lC What is ~ ~~ati9,^,a ~~~ :~~g~ ~~~,~~~ ~~~ ~~~ ~~~~~~~~~ You're experiencing the first one now. It's time set aside once a year for you and your FC -and you and your employees - to sit down together to review and discuss what ts... ar is not.,. going right and how you can improve your store`s performance with respect to age-restricted product sales and compliance. C-~OIhiG t~t]NIIViUN1~~4TIONS ~'~~' ~ ~~~a~~®s har~~,s, x1a~3.fi'~ ~'h~ ~v~ e~~. When something arrives on this letterhead, you`ll know it contains tips and information that will help you and yaur ernplayees take the guesswork out of the equation and ensure minors are not able to purchase age-restricted products in your store... regardless of the fact that ate d'~ ~ a ~/er1 ftfa ages oe tlaefr reheatf~! avess~NC~ W1;Y~W ~, Tl~IAT +CA~ti. ~el~sl~t~ta i~tler~ ~~li Dear Franchisees; i Every Franchisee understands the critical importance of adhering to age-restricted product laws and regulations... but no matter how conscientious we are, we can always improve. In late 2005, our subcommittee -then named the Age-Restricted Product Sales Subcommittee -was charged with developing tools to help stores improve their compliance with age-restricted product laws and regulations, and in May of this year, we presented this program in a comprehensive package of recommendations to 7-Eleven's Executive Team. While we are proud of this program and know it Sal make a difference, we also know that it can't make a difference without your support. During this first Come Of Age Awareness Week and those that follow, we encourage you to take the opportunity to sit down with your FC and discuss the materials in your Come Of Age Awareness Binder and to also take time to review and discuss your store°s age- restricted product sales policies and procedures with your employees. We also encourage you to participate in the monthly National Mystery Shop Program. These shops can help you better and more quickly assess performance issues and training needs in your store -and $8.00 a month is a small price to pay to protect your business. What's next for our subcommittee? Clur work is far from done. While we continue to work on age-restricted product issues, we are expanding our role to include ,~ regulatory issues affecting our stores. Because of this, we have changed our name to Government Affairs and have added several new members to help us. Elias Woldu from Washington, DC, Man~it Purewai from Northern California, and Tariq Khan from New York. Thanks for your time and attention. i3ur hope is that you never have the need for any of the Post-Sate Action materials in your Come Qf Age Awareness Binders Regards; ]as Dhilion, subcommittee co-chair -Southern California ]asbuil@yahoo.com / 818.571..1711 ]ivtesh Gilt -- Central Califomia 32]GILL@aoi.com / 209.939.0679 Mike Foster -Missouri Mfoster762@aol.cam / 314.645.3560 Bill Simmons -Virginia b-Simmons@comcast.net / 434.979.3295 Ai Haffar -Pennsylvania maherhaffar@yahoo.com / 610.279.4839 ~~~ tat 3 ~ .p ,.. ~£:.~.n. fn ~~) I COME ~F AGE AWARENE3$ Preventing the Sale Post-Sale Actions ~. ~~ ~ ~, ; r~~~ .r ~;; ~~ ~ - ,er~„ae y~,~_ .~ ~3As 8'.~t1tA14, ~` RfR }. } 3 j }max. ~ ~ d~ .. E ~: a, ,tli, . ~.. ~. ~. S' M 5 lE ~ ~ .A E .AVVAE 1~1 ~" ~ E~T10~1 O~JE: PREV'ENTIN THE SALE 1. LETTER FROM 7-ELEVEN MANAGEMENT TEAM ~d~ /Tevfew of comp/lance responsibi/itias at the store 2. ACE-RESTRICTED PRODUCT SALES /,Z'ecommended Fo%lcies and Prr~cedures 3. IDENTIFYING MINORS I~ Clcres to identifying minors SECTlO-~J T~'110-: POST-SALE ACTI+C}~1 ~!. ALLEGED VItJLATION GUIDESHEET S#eps #a #ake upon an affrc®r's no#lflca#ion of an alleged Illegal sale of an age-res#rlc#ed produc# at your sore 2. ALLEGED VIOLATION FACT SHEET Ques#ionnalre for use ~y course! following an alleged Illegal sale ~4 3. RECOIVIMENDED ADJUDICATION PROCEDURES Recommended procedures #o follow in the event of alleged viola#ion 4. VIOLATION -- 7-ELEVEN RESPONSE PROCEDURES 5. SPECIFIC TO CALIFORNIA: • CALIFORNIA COf~E OF REGULATIONS: MINOR DECOY REQUIREMENTS ~~, DALIFORNIA PROCEDURES FOLLOWING AN ALLEGED SALE OF TOBA~GCO TO A MINOR ~" SPECIAL B~ALIFORNIA LEGAL ARRANGEMENTS Ofsclaimer far Procedures: 7-Eleven Franchisees are fndependent contractors, tatafiy .,. responsible for afl of their labor matters and the compliance with faws. 7-Efeven inc. has a significant investment in the franchised store which can fee damaged by the Franchisee's lass of AEC or tobacco ficense, Therefore, 7-Eleven Inc. is recommending these procedures and steps to its Franchisees to deaf with the very serious issue of safes to miners. However, since the Franchisee is an independent contractor, he or she must decide whether to foifow these recommendations. µ,.,~,;. COME OF AGE AWARENESS f iNO"S Mil4R~1.-• 'f~!#~A"t`"' -'9iifNli 'liii'E CAR~t• ~. ~E... ~~~ .,.., 7-Eleven, Inc. €`~° October 18, 2007 To: AIB 7-Eleven Franchisees Rey: Contrc-11ing the Sale of Age-Restricted Products at your Store Ladies and Gentlemen: The issue of minors' access to tobacco and other age-restricted products has been a concern of ours for some time. This issue is also a matter of great national concern. ~ This concern is why we developed and continue to update our restricted products training -Come of Age. We have made training on our Come of Age and related programs available to you and your employees through tools such as the Store Information System and the MOT. Additionally, the POS i,~ systems in your stores are programmable to allow your sales associates to easily verify a customer's age. This !s training we strongly believe you should be continuously using with all of your employees. -~ In addition to our emphasis on the proper sailing of these products, there are new laws and regulations which impose greater penalties on retailers for selling cigarettes to minors in many areas of the country and we anticipate that similar laws and regulations will be enacted throughout the .~ country. These laws are being enacted at both the state and local government level and in many instances include the potential for revocation of licenses. In addition, retailers will be subjected to more and more sting operations for tobacco products. We have already experienced an increased number of these sting operations in various areas of the country. In connection with this increased regulatory activity, the Company signed an Assurance of Voluntary p Compliance (AVC} in 2005 with the Attorneys Genera! for numerous states in which we do business. Although the AVC does not bind Franchisees, it does pmuide that we will arrange for compliance shops to be performed at both company and franchised locations, and ail failures will be reported to the applicable Attorney General. The first year of this program indicates that additional emphasis on these compliance shops is ~ritic,~,, because quite frankly the results have not been as positive as we had hoped. The AVC also requires that we send out the information contained in this letter each year to all our Franchisees. In view of all of this, it is critical that you reemphasize the steps to ensure that your employees comply with the laws related to the sale of age-restricted products. The attachment to this letter describes in detail the policies and practices that we are s"rnpiementing in our Company stores to decrease the risk of underage sales occurring. We urge that you adopt the same or similar paiicies and practices in your Store. Please note the discussion of the use of a Shopping Service as a way to strengthen our actions against selling to minors. t._.. ~pyg~lNA'~ «- 8 ~•s wx~r w>~ cARa. ~,.. Controlling the Sale of Age-Restricted Products at your Store Page 2 Failure to comply with the laws related to the sale of age-restricted products can lead to serious consequences. These include the possible suspension or loss of your permit/license to sell such products, termination of your franchise agreement In the event of a revocation or lengthy suspension, and civil or criminal liability and other consequences of the sale of these products to our underage customers. We will continue requiring Franchisees to take all steps ts~ avoid or minimize any penalties that may be assessed against the Store as a result of an alleged violation. This wauid include pursuing all available appeals until the alleged violation is fully adjudicated and all appeals have been exhausted. If the governmental action results in a suspension of a license, we will charge Franchisees the gross • profit dollars we anticipate losing as a result of the suspension. If the governmental aetian results in a suspension of the license for longer than 30 days or a revocation of the license, we will consider a I termination of the franchise agreement. Loss of Funding Additionally, cigarette manufacturers, including Philip Morris and Lorillard, have elected to suspend ~° the following payments and promotional funding to retailers who are found to have sold tobacco products to a miner: ~ D merchandising payments, ~~ ~ eligibility for promotional resources, and A eligibility far product promotions. These merchandising payments and promotional funding dollars are very signii'icant and the suspension of the receipt of these amounts can be extremely detriments! to you and to us. Your Res onsi~lity As an independent contractor you have control aver the day-to-day operation of your Store, including hiring, training and employee supervision policies at your store. Secause of that status, we are limited to advising you of our recommendations as set out on the attached and you are free to -` implement such recommendations as you deem appropriate. However, your franchise agreement does require you to comply with any governmental law, rule, regulation, ordinance or order relating to the operation of the Store. It is critical that you have controls in place to ensure against the improper sale of age-restricted products at your Store. In addition to prohibiting the access of our youth to tobacco and alcohol beverages, you should understand that in evaluating available legal options to discipline,. terminate, or non-renew a franchise agreement, we shall give appropriate • consideration to violation(s) of youth access laws. Our Commitment f 7-Eleven is committed to employing and enhancing tobacco and alcohol beverage retailing practices - that are designed to prevent the sale of those products to minors. That !s because not only is it required by law, but also because it is the right thing to do to limit the access of these products to our underage eustomers and to be a responsible retailer in the communities where we have stores. We will continue to communicate with you in the future on this vitally important issue so that you are kept up-to-date on developments as they occur. If you believe that it would be helpful to further discuss these matters, please contact your Field Consultant at your earliest convenience to arrange for a meeting, Very Truly Yours 7-Eleven Management Team ~ ~t'~ ~ 'w~ ca~-. ~~ AGE-RESTRICTED PRODUCT SALES ' RECOMMENDED POLICIES AND PROCEDIfRES 1. Explain to your employees the reasons that the law and your policies deem youth access to these products an important matter, which should include the following reported information about tobacco products: a. The age of most beginning users (currently the average age is 14) b. fVicatlne is addictive, and young people may show signs of addiction after smoking only a few cigarettes or using smokeless tobacco products for only a short time ~,, c. The younger a person becomes a regular tobacco user, the more likely it is that he or she will become addicted for fife and that he or she will suffer serious health damage d. iMore than 449,000 Americans die each year from tobacco-related diseases ~. Ask all applicants for positions that involve the selling of age-restricted products about any ~A ~ past violations regarding the sale of age-restricted products and give any such violations due consideration in the hiring decision. ~~°, 3. Upon hiring an employee for a position (or upon first assigning an employee to a position) that involves selling age-restricted products, inform the individual of the importance of compliance with laws relating to youth access to such products. Include in the information you provide to new employees references to your personnel policies, legal consequences, i - and health eoneerns associated with youth access. ~4. Attempt to minimize the use of anyone under the legal age for purchasing age-restricted products for a position that may involve selling age-restricted products. 5. Before assuming any jab duties that involve or may involve the sale ofage-restricted products, have ail newly hired employees (or an employee being assigned to such a ' position for the first time) complete the Come of Age CBT Training module. Also: a. Require each employee to pass the test prior to assuming any job duties that involve or may involve the sale of age-restricted products b. Require each employee to pass the test on an annual basis c. Retain for three (3) years a record of the tests completed by each employee 6. Provide supplemental training to any employee you desire to retain who: i- a. Allegedly sails age-restricted products to a minor and you receive notice from a governmental agency of the alleged violation b, Fails to pass a compliance check pursuant to any program now existing or hereafter implemented by you or 9-Eleven °~- c. Fails to pass the Come of Age CBT test $..... .. ~•~ ii..~• i1.1~ 11.E 'a.r° } '1R~ '1E'1kiI~OIT"S i 1 ~_. AGE-RESTRICTED PR+d®Ut'iT SALES RECtJMIVIENDED Pt~-L!ClES AND PRtJCEDURES cont.) 7. Comply with the fallowing recommended age-restricted product retailing polieies and practices: ~ - a, Display for sale in only one area of the store and in an area designed to require an employee's assistance in retrieving the product s~ b. Have a policy requiring that na one under the legal age for purchasing tobacco is permitted to purchase smoking paraphernalia c. Have in place adequate policies and procedures that are actively enforced and which prohibit the selling of tobacco products or smoking paraphemalia to minors d. Require year employees to obtain identification before sales are made from persons seeking to purchase age-restricted products who appear to be under the age of 30 ~(or ? such higher age as you determine appropriate) e. Have a policy that each employee with responsibility for selling age-restricted products shall be reminded each time he or she begins a shift of the importance of performing proper I.D. checks far such purchases, through align-in sheet, signs, a cash register _ prompt, or other means f. Unless otherwise required by law, have a policy that only the fallowing forms of current and valid photo-LD. are acceptable far purposes of establishing legal age to purchase age-restricted products: ..; i. Driver's License ii. State-Issued Identification Card ^ iii. U.S. Passport iv. Military Identification Card F ..,'' v. U.S. Immigration Card 8. Implement a program of unannounced compliance checks designed to determine whether your employees are in compliance with youth access laws and your policies i~ In addition, the Annual Come Of Age Awareness Week program will provide additdonal materials and training opportunities to help you and your staff always be aware of and comply with age-restricted product laws and regulations. We encourage you to use this annual opportunity to increase emphasis on this activity..Since this program may include additional mystery shops not gavemed by the Assurance of Voluntary Compliance with the States Attorneys General and 7-Eleven would share in the cost of these additional shape, it is strongly recommended that you use these shops to improve compliance in your store. Q °~'H11T"S 'WHIP i tDEl~ITlFYtNG I~AINt}RS ~~ I# is impartan# #o knew how miners leak and act in order #o keep from selling #o #heim. Mere are some clues #o iden#ifyincl miners: ~ 1 Physical Characteristics -• Face (acne, pimples, complexion, peach fuze, baby face) Eyes (lack of wrinkles, no eye contact, downcast eyes) ^ w Hands (girlish nails and polish; absence of prominent veins) Body type (underdeveloped, skinny, plumpish) - Voice (high pitched, effort made to be deep, nervous, stuttering, whispering) Sweating 2 Behavior Verbal (giggling, loud., arguing) Acting {immature, nervous, childish, inconsiderate, insecure, confused, silly) r . w Lack of confidence It Trying too hard 3 Mannerisms -- Look (uncoordinated, sheepish) Sound (vocabulary, talking "coal") - Your impression (furtiveness, guarded, sneaky, evasive) ,~ ~ Dress 5tyie -- The fashion look (trendy, aver-dressed, faddish) Type afi clothes (jeans, gym shoes, rode T-shirts) ~.,' S Accessories Nair (unusual length, unusual style) ~~~ .jewelry {class ring, friendship ring, cheap-looking imitations) -- Make-up (too much, .unevenly applied) School logos ', . fi Conspanions Young-looking group Discussion outside before entering - Whispering in the group r Older person in group orders ~~. 5 TD Excuses iNote: None ot= these excuses are acceptable) ~- "I host it."` " -~ "I left it in the car.,' ~ "My dog ate It." r "It got stolen." "It got ruined in the washing machine." - "Came on, don`t I look old enough?" "I can't believe you're asking for my I.D.!" "So-and-so always sails to me." <^~~ .: ,; ~ ," ~, [1 a ~11~1''S'- '1IVN'~` 11V'T CAR COME OF i AGE AWAREN i ESS 7~',~ "i~HAT'S tili*MY "MgE CitRD• ALLEGED AGE-RESTRICTED FRODU~CT SALE VIOLA714N GUIDES~IEET: EDIATE IN-STORE PROCEDIURES Upon an officer's notification that an alleged illegal Sale of an age-restricted product has occurred, the following procedures should be followed: 1 The Sales Associate should inform the Franchisee or Store Manager immediately. ('While the authorities are still at the store preferred) - Be cooperative with authorities, but do not discuss the facts concerning the possible violation - Collect the names and phone numbers of any witnesses to the alleged illegal safe - If the Franchisee/Store Manager is not available, leave a message and capture as much information as possible to discuss when they are available 2 The Franchisee or Store Manager should call the Hotline immediately upon notification by the Sates Associate C~ to call if no one is available) - The Hotilne will notify the Field Consultant of the possible viaiatlon. . - The Field Consultant should fallow their Market notification procedure. - The Field Consultant should contact the Franchisee j Store Manager and schedule a meeting with the store management and the Sales Associate. 3 After calling the Hotline, the Franchisee~'Store Manager should go to the stare ~4 Upon arrival at the store, the Franchisee or Store Manager should: - Be cooperative with authorities, but da not discuss the facts cancemfng the possible violation r - Colieet the names and phone numbers of any witnesses to the alleged illegal sale .~~ Review the video tape, if any, of the transaction and place the tape in a secure area. i The authorities may request the tape to take as evidence, and they should be allowed to do sa -make sure to get the name/phone # of the person who took possession. - Provdde the accused Sales Associate the opportunity to write a statement describing the aiieged event. The statement will then be used when the Sales Associate meets with the Franchisee /Store Manager /Flied Consultant to complete the "Alleged Violation Fact Sheet". This should be done as soap after the event as passible The Market Manager /Field Consultant shauid assist the store management in collecting all the pertinent information, making sure that all evidence relating to the alleged violation has been secured FOR ANY ALCOHOL VIOLATION, the Market Manager !Field Consultant should verify the feet that the Franchisee has an file far ail current employees any State or local documents that are required by law (i.e. - A6C Clerk`s Affidavits signed by all of their Sales Associates}. Any training records (in-house Carne of Age, outsourced to an outside agency / re-fresher training), need to be secured and reviewed. Specifically, verify that the involved Sales Associate, who was accused of making the illegal sale, has completed ail of the necessary documents and training -~ iFOR ANY TOBACCO VIOLATION, the Market Manager /Field Consultant shauid verify that the Sales Associate, who was accused of making the illegal sale, had attended Come of Age, passed and signed the final test. Any re-fresher training should also be identified and noted. The Sales Associate who is accused of the illegal sale should be suspended immeddately until the outcome of the investigation by the Franchisee and Market Manger is completed. This must be completed as quickly as possible after the alleged viaiatlon. The intent is to keep the relationship with the Sales Associate positive for potential future witness procedures. (This is a recommendation to our Franchisees, but should be considered policy in corporate stores) ~~iif~rrnia Fran ~~s,~es: Please also see "Speci>~c to CaJifornia"maafarfals ._ ~' rs w+rwe coo. ALLEGED Otlt)LATION FACT SHEET Interview Questionnaire Concerning Alleged Sale of Restricted Products to Minors w {For use by oounsel) To assist your counsel, the followdng questions should be asked of any Sales Associate cited for salting restricted products to a minor, and other personnel who were at the premises at the time. The answers shouid be compared to any other evidence that is available, i.e. the security system that records activity at the front door and primary POS register. 1. Name, address and phone number of the Sales Associate who was working at the time. 2. Name of any other store employee who was working at the time. ~~ 3. Date of incident, including day of week. 4. Tme of incident, weather conditions and any other factors that might have affected store lighting. ~~~ 5. Number of customers in the store at time of incident; also, number of customers waiting in line behind the underage purchaser; names and phone numbers of customers if known. 6. As to the Sales Associate who made the sale, find out: a. Date of hire b. Date of Come of Age training c. Date of any re-fresher training ~T', d, Number of hours worked that day prior to incident in question. e. Name of supervisor at time of purchase. f. Secure ail pertinent documents required by local /State laws (clerk affidavits) ~, g. Prior jobs involving safes of restricted products. h. Identify any point-of -sale aids such as tear-off calendar, Come of Age Meter, Magnetic Strip Reader, etc..... ., 7, Give narrative description of what occurred: cover the time span between first seeing the under age purchaser, the purchase, the purchaser leaving the store, the purchaser`s return to the store wdth authorities, the time the purchaser and authorities finally leave the stare; get clerk to recount words spoken by each person (including hirn/herself) as accurately as possible; take complete notes, even if details seem inconsequential. ~. ~~ ~.. Vic„ ~ , w~ calRi~. l ALLEGE~f 1tiOLAT1UiV FACT SHEET {cont.) 8. How old did the purchaser appear to be? What was the basis for the Saies Associate's decision regarding the purchaser's age? 9. Did the Sales Associate ask the purchaser any questions about his or her age? Was any verbal ar non-verbal response given? C,... i_ ~m~ iE}. Did the Sales Assaciate ask for the purchaser's IO? What was the response? 11. Did the Saies Assaciate leak at the purchaser's iD? What kind of ID was it {e.g. driver's license, military, etc)? Did the Saies Associate hold the ID ar did the purchaser hold it? Was the ID in a wallet or other container that might have obscured dates, etc? 12. If the Sales Assaciate looked at the ID, did he/she compare the description on the ID with the purchaser's appearance? What was the date of birth shown on the ID? If the ID was a driver's license, did it contain a stripe highlighting the year the driver turns 21? If so, what was that year? 13. Did the Saies Associate notice anything unusual about the ID? 14. Did the Saies Associate have any discussion with the purchaser about the ID? 15. Was the purchaser alone or accompanied by others when the purchase was made? 16. Following the completed sale, how long did it take for the purchaser to return to the stare with a palice officer or investigator to confront the clerk? How many officers/investigatars accompanied the purchaser on his return? Did they identify themselves? 17. Was the Sales Associate given any kind of citation ar notice to appear? If so, get a copy. ].$. Have the Sales Assaciate describe the purchaser's sex, height, weight/build, hair valor, hair length/style, clothing, jewelry. 19. Did the purchaser's face have acne, pimples, etc.? Peach fuzz? Baby face? 20. Did the purchaser make eye contact with the Saies Associate at the time of the purchase? 21. If the purchaser was a female, did she wear nail polish? 22. Describe the purchaser's voice, for example, was it high pitched? 23. Did the purchaser make an effort to use a deeper that normal voice? 24. Did the purchaser stutter, whisper? 25. Was the purchaser sweating ar displaying any nervousness? 26. Did the purchaser giggle, laugh, have a laud voice, argue with the clerk? 27. Did the purchaser appear confident and nonchalant? Nervous? Natural? 28. Did the purchaser use words that were current slang? If so, what were they? 29. Did you get the impression that the purchaser was acting sneaky or was evasive? 3l). Did the purchaser wear fashionable, trendy or faddish clathes? Appear overly dressed? 31. Did the purchaser wear jeans, gym shoes, a rock tee shirt? 32. Did the purehaser wear jewelry, class ring, friendship ring? 33. Did the purchaser wear any make up? Was it light or heavy? 34. Did the purchaser's ciathing display any school Lagos? 35. Did the purchaser have any companians? How aid did they look? Were they inside or outside the stare? g ~ Y~WE BARD. ~ AGE-RESTRICTED PRODUCT ALLEGED ILLEGAL SALE RECOMIIAENDED ADJUDICATION RROCEDURES -~ I=RANCI~ISEES The f®Iloenrin is a set of recommended racedures to follow in the event of J P an alleged violation at a franchised stare. N. 1 t3nce the employee interviews are completed, the Franchisee should consult with an attorney concerning the interview results and decide if further investigation is } warranted. 2 tNe recommend that no agreement admitting to a sale of tobacco or alcohol to a minor should be entered into previous to the Franchisee and Market Manager reviewing the facts obtained at the conference and a review with their respective iega! counsel. 3 Upon receipt of any citation or other document alleging a sale of tobacco or alcohol to a minor, the Franchisee should immediately consuit with an attorney, who should evaluate the facts and review the procedure to defend the citation, Consideration ~a~ should also be given at that time to serving subpoenas or public records-act request to third parties (e.g. 6ocai governmental agencies) who may have relevant information; it is important that the discovery requests be issued promptly as delay may impair Franchisee's ability to undertake discovery. 4 The Franchisee should also advise the Field Consultant of the citation and the facts about the event. In doing so, the FC should be advised of the attorney`s name/number € ~° in case there is a need to coordinate a defense with 7-Eleven, Inc. 5 C?nce the discovery is received, a realistic assessment can be made as to the strength of any defenses to the alleged violation, and a decision should be made as how to proceed. 6 The Franchisee should keep the FC advised throughout the process and specifically advise him/her of the outcome of any hearing on the matter Cali,~ornia Franchisees: Please also see "Spr+ecii~/c to California"materials f. ~._ ~'$ . ' #.,~. ~._. _ TgBACCO & ALCOHOL VIOLATIONS - 7-ELEVEN RESPONSE PROCEDURES ~ In addition to assisting the Franchisee or Store Manager in gathering -' information about the alleged illegal sale, ?-Eleven will respand as follows: 1 For any all®ged viola#ion, and before it "rs final, a Letter of Notification (LC?N) will ~. be sent by the Market Manager to the Franchisee - The LON will strongly recommend that the Franchisee take all steps to avoid or minimize any penalties that. may be assessed against the Store as a result of an alleged violation, ~ - This would include ursuin all available a p g ppeals, if such appeal is deemed appropriate by ?-Eleven, until the alleged violation is fully adaudicated and all appeals have been exhausted 2 liolation resulting in a Fine For a violation and after it is final, where there is no loss of license, a Notice of Material Breach will be issued, and can be cured by adopting 7-Eleven°s Age- Restricted Product Policies and Procedures. - (See Section One: Preventing the Sale - "'AG'E-RESTRICTED PRODUCT SALES: RECOMMEIV®ED POLICIES AND PRf3CEDURES") ~~~~~ ~ Violation resulting in a Suspension For a violation that results in a suspension, after it is final, a Notice of Material ~~ Breach wil0 be issued. -- The Breach can be cured by adopting the Policies and Practices and by paying to 7-Eleven its share of the lost gross profit resulting from the suspension of the ~-- sale of tobacco or alcohol products. 4 Violation resin#ing in a Revocation of the Licens® or Suspension greater than 3U Days For the outright revocation of the license, or a suspension for greater than 30 "' Calendar Days, anon-curable Notice of Material Breach may be issued and the r ~.; Franchise Agreement terminated s '~ ~;l11E ~piRD. ~ ''MAT'S 1N'tilf SE~TtON '14"I -MINOR L3ECt7Y REQIlIREMENT~ (ALCtJJH©Lj TITLE 4, DIVISION 1, CALIFORMIA CODE OF REGULATIONS (USefU/ fot' ttt?det~st~aAdlr~g ~@COj/S~ This re uirement current) a lies to use of deco sin alcohol stin s, and 4 Y pp Y 9 ~ - could apply to the use of decoys in tobacco stings in the future 1 A law enforcement agency may on{y use a person under the age of 21 years to fi`'' attempt to purchase alcahol beverages to apprehend licensees, or emplayees or agents of licensees wha sell alcohol beverages to miners {persons under the age of 21) and to reduce sales of alcahol beverages in a fashion that promotes fairness Z The fallowing minimum standards shall apply to actions filed pursuant to Business and professions Code Section 25658 in which it is alleged that a minor decoy has purchased an alcohol beverage: - At the time of the gperation, the decoy shall be less than 2q years of age - The decoy shall display the appearance which could generally be expected of a person under 21 years of age, under the actual circumstances presented to the -g seller of alcahol beverages at the time of the alleged offense - A decoy shall either carry his ar her own identification showing the decay's ^ correct date of birth ar shall carry na identification; adecoy who carries identification shall present it upon request to any seller of alcahol beverages .' - A decoy shall answer truthfully any questions about his or her age ~ ' - Following any completed sale, but not later than the time a citation, if any, is issued, the peace officer directing the decoy shall make a reasonable attempt to enter the licensed premises and have the miner decoy .who purchased alcahol beverages to make a face to face identification of the alleged seller of i the alcohol beverages 3 Failure to comply with this rule shall be a defense to any action brought pursuant to Business and professions Code Section 25658 ~.. ~- {. ~_ SPECIFIC Tl~ CALIFORNIA PROCEDURES FOLL0INlNG ALL.E~E® SALE OF TOBACCO TO A MINOR This mama autliines the respanse to an alleged uialation, i.e., being cited for the sale of tobacco to a miner ~Et4CED~t~RES: In addition to the in-store procedures described in the preceding Post Sale ^ Action materials, the following should be followed. The sequence of events is generally the same (with noted exceptions), and follows the same genera! pattern: . 1 Alleged violation occurs; store clerk and/or ar owner may be cited by local police; a owner is notched 2 San Francisco Hearingl'Procedure: Department of Health or other agency cites ~~ store and the store is advised to attend the hearing/meeting at the Department of Health office to discuss violation. The notice is typically sent to the store address ~ and ?-Eleven may not receive a copy. This meeting usually consists of the Department of Health telling the licensee he has violated the law and is in "big trouble". We have been told these hearings will become more formal, but how formal remains to be seen, It does appear that the Franchisee will have the opportunity to present evidence including mitigation and explore settlement. If the initial hearing is attended and no plea is made or settlement is agreed to, -~ the likely scenario is that the Department of Health will issue a notice finding the _s licensee in violation and setting a penalty. The Franchisee can appeal to the Board of Appeals. Next there will be a hearing before the Board of Appeals and the Franchisee will want to make sure he or she has legal representation and 7-Eleven in involved in knowing what is occurring. 3 Sacramento Procedure: The agency doing the sting notifies the stare and a citation is issued and penalty/suspension is assessed without any hearing. The Franchisee then has the right to appeal and a hearing will be held, The Franchisee may have an opportunity to discuss a settlement prior to or at the hearing. 4 It is suggested that a Franchisee. obtain legal representation before attending the initial hearing/meeting in San Francisco or Hearing in Sacramento. Also, a Franchisee should net admit guilt to the sale until he or she has had a chance to determine whether they wish to contest the matter. ?-Eleven can provide additional references for attorneys to handle a Franchisee's case. ~~ i ~p~ ~ °ii~lAT'$'N1`~!Y'Mitit: CARD. i i, ~. SPECIAL CALIFORNIA LEGAL ARRANGEMENTS 1 In San Francisco, the Franchisee, their attorney (if he/she thinks it's advisable), and the Market Manager should attend the initial hearinglconference with the Department of Public Health. We understand that a hearing officer has been hired -~ to preside. Until recently these hearings have been very informal but we think it is ~•., likely they will be a little more farmai in the future and involve a diseussion of the facts of the alleged sale, and representation by caunsel will be helpful. 7-Eleven has arranged for the law firm of in Ban Francisco Hinman and Carmichael, Z60 California Street, San Francisco, CA 94111 - Phone» 415-362-1215 to be available far Franchisees for these matters. Upon conclusion of this hearing, a "decision" will be issued which will include the setting of a penalty if the hearing officer finds an ~., illegal sale accurred. The decision including penalty may be appealed to the Board of Appeals which will set a hearing usually within 60 days of the filing of the appeal. ~ In Sacramento the first meeting will be a "trial" on the alleged violation. The Franchisee or Store Manager should have gathered all facts and talked to the Field Consultant and Market Manager. 7-Eleven has arranged for the law firm of contact ,-, ]im Parrineilo of the Nielsen Merksamer, with ofl•wces in Sacramento and San Francisco -Phone 415-388-6800, who represents 7-Eleven and they will help find a lawyer to be available to defend Franchisees. 3 In Sacramento, both the City and County have ordinances regulating sales of F tobacco products to minors. The procedures in each are somewhat similar. The • city/county through one of its administrative staff members will issue a i - letterjnotice advising that the store have violated the law and setting a penalty, usually a suspension. The store then has the right to file an appeal. The first hearing/meeting will be a "trial" on the alleged violation. The Franchisee or Store Manager should have gathered all facts and talked to the Field Consultant and k,_ Market Manager. 7-Eleven has arranged for the law firm of contact aim Parrineiio - of the Nielsen Merksamer, with offices in Sacramento and San Francisco -Phone ~ 415-388-68Q0, who represents ~-Eleven and they will help find a lawyer to be available to defend Franchisees. ~~ tMKi'AF. 11~-ho All corporate stores and participaiing franchised stores yli'hat ®ne shop per month per store ~'ta~en: Program begins in January 2048 provider: BARS Process: Monthly shops will alternate between alcohol and tobacco products Cost; $96.28 per shop - Cost shared (54°fo ?-Eleven ! 50°l° Franchisee) in participating franchise stores - Franchisee share charged monthly (~8 and change) to participating Franchisee's Financial Summary - Annual cost to participating Franchisee: 9?.S4 Sen~egts: Increased Focus =Improved Performance! Improved Performance =Reduced Risk of Violations! Participation: To participate, please sign the attached Participation Agreement and give it to your Field Consultant N~tianal My~telry Shag Pra+~raim Franchisee Fart~cipa~ian Far#n Asa 7-Eleven Franchisee, you have the opportunity to participate in the National Mystery Shop Program (tt~e "Program") that 7-Eleven is roiling out to our company operated Stores. The Program was reviewed and approved by Franchisee members of 7-Eleven's Presidents Leadership Council ("PLC"}. ~EMIERAL DESCRIRTIOM aiF SERtiICES AMD RA'i'ES- Cost - $16.25Jntonth ~'--E#even is picking up ,~ the cost) • Once a month shops will alternate between alcohol and tobacco products • Ail shoppers will be of legal age. The program is designed to determine whether your employees obtain Identification before sales are made to persons seeking to purchase age- res~ricted products who appear to be under the age of thirty (30). You will be notified of the results of each mystery shop (pass or fail) by the Shopping Service immediately upon completion of the mystery shop. 7-Eleven wiii be notified of the results by the Shopping service. You will ~# receive any formal notice (LON or Breach Notice) as a result of any Mystery Shop during which your employee fails to obtain proper identification from the shopper. PAR7ICIPATIC?if~l , REEMEMT By signing below, you agree to participate in the Program and you authorise 7-Eleven to make payment for the services provided on your behalf. The cost of such services wiii be shared equally between you and 7-Eleven and will be charged to your Open Accaunt for the month in which ?-Eleven is inva6ced. The term of the Agreement with respect to your Store shall begin on the date of your choke after January ~C908 and continue until the earlier of: ^ Termination upon at least 30 days written notice by you; • Termination of your Franchise Agreement; or • Termination of the Program by ~-Eleven upon at least thirty (30) days written notice to you. Franchisee Signature Franchisee Signature Store Number Effective Date ..8 an F #~. 49 Ot an ~ 49 $) ~G9 A ~ v ~ ~ ~ ~ ~ L c ~.~~ ro ~ ~°~~~ x ~m~~~,~~'wc ~-_ ° ~, do ;~ ~ ~ "" vfli ~ ~ Cx. ~. u~ ~.c ~ ~ ~ ~ ~ ~ :~~'~~~o as ~ w ~ ~+ ~`mu~..~roA*~~~c~i ;~ ~,~ ~~ ~ ~ ~;ta to 'e"' ~,5 ` ~ ~ ~. 3 re ~ ~ ~ Qd ~ ~ ~ t~k ~ ~ ~ s~ ~ 4"" ~ w ~, ~ ~ ~ gss ~ ~ "a. a,~ ~. `~ pp RXF t3,a ~ ~ ~ r„~ ~ ~ `~ ~ , '~-~~'~, ~~~ ~ ~'~~~~ ~~ ~..~~ :~"~~~~ .~ ~ ~~ ~ ~ ~ Lei as 'y°q,. .;Ri e~ Yom? 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F w ~ a E s?, v ~» C) ro m e:+ ~- av ~ ,.~ ~ .. q -q .~ ea ~ 'S7 m t-- ~~ ti~ is ~~ H~ c~'~ E ~ ~as~~c~i rc~~~~ gym'-~~ ~~~~~~~ ~~3om•_ ~~'~ ~ ox L cSG.aa~~'a ,~~ c ~ ~~~ w ~ ~: m ;~ ro ,. ~. ~m~~~~~ H ~ ~ ~ ~ ~ .~ ~ = v ~ ~ v ca,~~;xs'vc a-cE,,°~~~~ ',°aro.~,~aa, r~•Einerv~w ~~ 3 ~~~ E .c ~ ~~ a~ a ,~ N ao ~~ ~ c~~ ~x ~~ ~ °,~ ~. - ~ ~ +. ~ aa+ ~ C~ a- n, a c ~ 4 '~ ~ ~~ ~, -a °a ~ ~ a~ ~ vs `m c a; ~~+~°c ~~~~~~~~ .a ~~E°s~Ec~s~ c» a ffi7'~•~'_ ro ~ ~~ ~ ~ ~ °~ ~ > > ~ a ? ~ ~ ~~~'. u ~ ~~~~ v ~s~~~q~~ m a'"t~or-~~~ ~~~~cm~~ ~' 'c '~° ~ ~' a. ~ '° ATTACHMENT D RESOLUTION N0.4185 RESOLUTION N0.4185 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF TUSTIN, APPROVING CONDITIONAL USE PERMIT 2011-16 AUTHORIZING THE ESTABLISHMENT AND OPERATION OF A TWENTY-FOUR (24) HOUR CONVENIENCE STORE WITHIN AN EXISTING TENANT SPACE LOCATED AT 13842 NEWPORT AVENUE #E. The Planning Commission does hereby resolve as follows: I. The Planning Commission finds and determines as follows: A. That a proper application, Conditional Use Permit 2011-16, was filed by 7-Eleven, Inc. requesting authorization to establish and operate a twenty-four (24) hour convenience store within an existing 2,952 square foot tenant space located at 13842 Newport Avenue #E. B. That the Commercial General (CG) zoning district and Community Commercial General Plan land use designation provide for a variety of commercial uses. In addition, the project has been reviewed for consistency with the Air Quality Sub-element of the City of Tustin General Plan and has been determined to be consistent with the Air Quality Sub-element. C. That convenience stores are listed as conditionally permitted uses within the Central Commercial (C-1) zoning district pursuant to Section 9232b10 of the Tustin City Code (TCC). The subject property is located within the Commercial General (CG) zoning district where pursuant to Section 9235c1 of the TCC, all conditionally permitted uses in the C-1 district are also conditionally permitted in the CG district D. That a public hearing was duly called, noticed, and held for said application on October 11, 2011, by the Planning Commission. F. That the establishment, maintenance, and operation of the proposed use will not, under the circumstances of this case, be detrimental to the health, safety, morals, comfort, or general welfare of the persons residing or working in the neighborhood, nor be injurious or detrimental to the property and improvements in the neighborhood of the subject property, or to the general welfare of the City of Tustin in that: 1. The proposed convenience store is consistent with the definition of a convenience store provided in Section 9297 of the Tustin City Code in that the convenience store is less than 15,000 square feet and sells food, beverages, magazines, and auto-related items, or any combination thereof, for off-site use and/or consumption. Resolution No. 4185 Page 2 2. The proposed use is a reputable business with over eighty three (83) years of experience in the convenience store industry. 3. The 7-Eleven, Inc. business model requires that all stores be open twenty-four (24) hours a day, seven (7) days a week. The five (5) existing 7-Eleven stores within the City of Tustin all follow these hours of operation. 4. The proposed use would provide for convenient shopping for nearby businesses and residents. 5. The project does not include sales of alcoholic beverages and the subject property does not meet the minimum distancing requirements contained within Section 9271 dd to sell alcoholic beverages for off-site consumption. 6. The building entrance is oriented towards Newport Avenue, therefore, no noise impacts are anticipated as all activities would occur within the building and access is provided along Newport Avenue. G. This project is Categorically Exempt pursuant to Section 15301, Class 1 of the California Code of Regulations (Guidelines for the California Environmental Quality Act). II. The Planning Commission hereby approves Conditional Use Permit 2011-16 authorizing the establishment and operation of a twenty-four (24) hour convenience store within an existing 2,952 square foot tenant space located at 13842 Newport Avenue #E subject to the conditions contained within Exhibit A attached hereto. PASSED AND ADOPTED by the Planning Commission of the City of Tustin at a regular meeting on the 11th day of October, 2011. JEFF R. THOMPSON Chairperson ELIZABETH A. BINSACK Planning Commission Secretary Resolution No. 4185 Page 3 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) CITY OF TUSTIN ) I, Elizabeth A. Binsack, the undersigned, hereby certify that I am the Planning Commission Secretary of the City of Tustin, California; that Resolution No. 4185 was duly passed and adopted at a regular meeting of the Tustin Planning Commission, held on the 11t" day of October, 2011. ELIZABETH A. BINSACK Planning Commission Secretary EXHIBIT A CONDITIONAL USE PERMIT 2011-16 CONDITIONS OF APPROVAL EXHIBIT A RESOLUTION N0.4185 CONDITIONAL USE PERMIT 2011-16 CONDITIONS OF APPROVAL GENERAL (1) 1.1 The proposed project shall substantially conform with the submitted plans for the project date stamped October 11, 2011, on file with the Community Development Department, as herein modified, or as modified by the Director of Community Development in accordance with this Exhibit. The Director of Community Development may also approve subsequent minor modifications to plans during plan check if such modifications are consistent with provisions of the Tustin City Code. (1) 1.2 Unless otherwise specified, the conditions contained in this Exhibit shall be complied with as specified, subject to review and approval by the Community Development Department. (1) 1.3 This approval shall become null and void unless the use is established within twelve (12) months of the date of this Exhibit. Time extensions may be granted if a written request is received by the Community Development Department within thirty (30) days prior to expiration. (1) 1.4 Approval of Conditional Use Permit 2011-16 is contingent upon the applicant and property owner signing and returning to the Community Development Department a notarized "Agreement to Conditions Imposed" form and the property owner signing and recording with the County Clerk- Recorder a notarized "Notice of Discretionary Permit Approval and Conditions of Approval" form. The forms shall be established by the Director of Community Development, and evidence of recordation shall be provided to the Community Development Department. (1) 1.5 Any violation of any of the conditions imposed is subject to the issuance of an Administrative Citation pursuant to Tustin City Code Section 1162(a). (1) 1.6 Conditional Use Permit 2011-16 may be reviewed on an annual basis, or more often if necessary, by the Community Development Director. The Community Development Director shall review the use to ascertain compliance with conditions of approval. 'If the use is not operated in accordance with Conditional Use Permit 2011-16, or is found to be a nuisance or negative impacts are affecting the surrounding tenants or neighborhood, the Community Development Director shall impose SOURCE CODES (1) STANDARD CONDITION (5) RESPONSIBLE AGENCY REQUIREMENT (2) CEQA MITIGATION (6) LANDSCAPING GUIDELINES (3) UNIFORM BUILDING CODE/S (7) PC/CC POLICY (4) DESIGN REVIEW *** EXCEPTION Exhibit A Resolution No. 4185 CUP 2011-16 Page 2 additional conditions to eliminate the nuisance or negative impacts, or may initiate proceedings to revoke the Conditional Use Permit. (1) 1.7 As a condition of approval of Conditional Use Permit 2011-16, the applicant shall agree, at its sole cost and expense, to defend, indemnify, and hold harmless the City, its officers, employees, agents, and consultants, from any claim, action, or proceeding brought by a third party against the City, its officers, agents, and employees, which seeks to attack, set aside, challenge, void, or annul an approval of the City Council, the Planning Commission, or any other decision-making body, including staff, concerning this project. The City agrees to promptly notify the applicant of any such claim or action filed against the City and to fully cooperate in the defense of any such action. The City may, at its sole cost and expense, elect to participate in the defense of any such action under this condition. (1) 1.8 The applicant shall be responsible for costs associated with any necessary code enforcement action, including attorney's fees, subject to the applicable notice, hearing, and appeal process as established by the City Council by ordinance. USE RESTRICTIONS (1) 2.1 The subject location is not eligible for off-site alcoholic beverage sales since the site does not meet the minimum distance requirements from existing sensitive uses set forth in TCC Section 9271 dd(1)(a). Accordingly, no alcoholic beverages shall be sold from the subject location. (1) 2.2 No outdoor storage shall be permitted except as approved by the Director of Community Development. (1) 2.3 All business activity, sales, displays or other business activities related to the convenience store shall be conducted entirely within the subject building. Exhibit A Resolution No. 4185 CUP 2011-16 Page 3 BUIL®INCa Dli/ISI®N (1) 3.1 At the time of building permit application, the plans shall comply with the 2010 Edition State and the City of Tustin adopted codes: California Building Code, California Electrical Code, California Plumbing Code, 2008 Building energy EfFciency Standards for Nonresidential building, City Ordinances, and State and Federal laws and regulations. Building/space must be designed for a Group M Occupancy. (1) 3.2 Prior to approval of the plans for permit, Orange County Environmental Health approval shall be secured. (1) 3.3 A grease interceptor will be required if food is prepared in the store (Section 1014.0 of the 2010 CPC) and the interceptor shall be sized based on Table 10-2 of the 2010 CPC. FEES (1, 5) 4.1 Within forty-eight (48) hours of approval of the subject project, the applicant shall deliver to the Community Development Department, a cashier's check payable to the COUNTY CLERK in the amount of fifty dollars ($50.00) to enable the City to file the appropriate environmental documentation for the project. If within such forty-eight (48) hour period the applicant has not delivered to the Community Development Department the above-noted check, the statute of limitations for any interested party to challenge the environmental determination under the provisions of the California Environmental Quality Act could be significantly lengthened.