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CARLSBAD
CLOVIS
IRVINE
LOS ANGELES
PALM SPRINGS
EMERYVILLE
RIVERSIDE
ROSEVILLE
SAN LUIS OBISPO
2565 Alluvial Avenue, Suite 172, Clovis, California 93611 559.490.1210 www.lsa.net
MEMORANDUM
DATE: May 11, 2026
TO: Liliana Vidrio Flores, MBA, Cannabis Program Manager City of Fresno, Office of Cannabis Oversight
FROM: Kyle Simpson, Principal
SUBJECT: Entertainment Zone Ordinance – Common Sense/No Possibility of Effects Exemption
INTRODUCTION
The City of Fresno (City) proposes to establish Entertainment Zones in the city allowing for the purchase and consumption of open container alcoholic beverages subject to issuance of applicable Special Event Permits. This memorandum has been prepared to support the City’s determination that the proposed ordinance is exempt from the California Environmental Quality Act (CEQA).
Section 15061(b)(3) of the CEQA Guidelines states that if there is no possibility that a proposed activity would result in a significant effect on the environment, the activity is not subject to CEQA.
This memorandum provides a description of the proposed ordinance and describes the basis for the ordinance to be exempt from CEQA.
PROJECT DESCRIPTION
The California State Legislature enacted Senate Bill (SB) 969, effective January 1, 2025, that authorizes cities to establish designated Entertainment Zones where alcoholic beverages purchased from eligible licensed businesses may be consumed in open containers in approved outdoor areas during City-permitted special events.
In response to SB 969, the City proposes to adopt an Entertainment Zone Ordinance to establish and regulate Entertainment Zones to allow for the purchase of open container alcoholic beverages from local bars, restaurants, wineries, breweries and on-sale licensees for consumption outside in common spaces such as plazas, public streets, sidewalks, or public rights of-way during certain hours, subject to a Special Event Permit issued pursuant to Section 14-2404 of the Fresno Municipal Code (FMC). The proposed Entertainment Zone Ordinance establishes three Entertainment Zones in downtown Fresno in which purchasing open container alcoholic beverages and consuming alcoholic beverages would be allowed. In addition, the proposed Entertainment Zone Ordinance establishes regulations for all activities conducted within the proposed Entertainment Zones pursuant to appliable Special Event Permits.
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2 At this time, the proposed Entertainment Zone Ordinance establishes three Entertainment Zones, however, in the future, the proposed Entertainment Zone Ordinance may be amended to include additional Entertainment Zones throughout the city.
The proposed text of the Entertainment Zone Ordinance is attached to this memorandum.
EXEMPTION FROM CEQA
Section 15061 of the CEQA Guidelines states the following:
15061. Review For Exemption
(a) Once a lead agency has determined that an activity is a project subject to CEQA, a lead agency shall determine whether the project is exempt from CEQA. (b) A project is exempt from CEQA if:
(1) The project is exempt by statute (see, e.g. Article 18, commencing with Section 15260). (2) The project is exempt pursuant to a categorical exemption (see Article 19, commencing with Section 15300) and the application of that categorical exemption is not barred by one of the exceptions set forth in Section 15300.2.
(3) The activity is covered by the common sense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment.
Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.
(4) The project will be rejected or disapproved by a public agency. (See Section 15270(b)). (5) The project is exempt pursuant to the provisions of Article 12.5 of this Chapter. […]
As stated in Section 15061(b)(3), an activity is exempt from CEQA where it can be seen with certainty that there is no possibility that the activity in question would result in a significant effect on the environment. This is referred to as the Common Sense Exemption or the No Possibility of Effects Exemption, as it can be stated with certainty that the proposed activity does not affect the environment.
The adoption of the proposed Entertainment Zone Ordinance would allow for purchasing and consuming open container alcoholic beverages during events that have obtained a Special Event Permit from the City. In addition, the events allowed under the Special Event Permit in which purchasing and consuming open container alcoholic beverages would be allowed and would be required to be located within one of three Entertainment Zones established by the Entertainment
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3 Zone Ordinance. The adoption of the proposed ordinance would not result in direct physical impacts because the proposed ordinance would be limited to allowing for additional activities to occur under a Special Event Permit, and those activities would be limited to the three designated Entertainment Zones. The proposed Entertainment Zone Ordinance may be amended in the future to include additional Entertainment Zones throughout the city. If the proposed Entertainment Zone Ordinance is amended, all future activities would be required to obtain a Special Event Permit, and would be required to meet the requirements of the FMC, including all applicable vehicular and pedestrian traffic laws, noise regulations, and all lawful direction from law enforcement authorities.
CEQA Guidelines section 15382 defines a “significant effect on the environment” as “a substantial, or potentially substantial, adverse change in any of the physical conditions within the area affected by the project including land, air, water, minerals, flora, fauna, ambient noise, and objects of historic or aesthetic significance.” The purpose and expected outcome of the proposed ordinance is intended to allow for specific activities within Entertainment Zones, subject to applicable Special Events Permits and requirements of the FMC. As a result, the adoption of this ordinance would not result in an adverse impact on the environment because no physical changes to the environment would occur.
SUMMARY
On the basis of the explanation provided above, the proposed Entertainment Zone Ordinance is exempt from CEQA because it can be seen with certainty that there is no possibility that the proposed ordinance would result in a significant effect on the environment. As a result, a Notice of Exemption may be prepared for the proposed ordinance.
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5 ATTACHMENT
PROPOSED ENTERTAINMENT ZONE ORDINANCE