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HomeMy WebLinkAbout5.F.4. Alcohol Licensing and Regulation-Ord. No. 779 s; F,t CITY OF SHAKOPEE Memorandum CONSENT TO: Mayor and City Council Mark McNeill, City Administrator FROM: Judith S. Cox, City Clerk SUBJECT: Alcohol Licensing and Regulation DATE: June 18, 2007 INTRODUCTION: Council is asked to consider amendments to the City Code relating to the licensing and regulation ofthe sales of alcohol. BACKGROUND: Some changes to Minnesota Statutes have occurred over the recent years and staff is recommending that the City Council consider updating those sections in the City Code that are inconsistent with the State law. Ordinance No. 779, attached, has been prepared addressing the following recommended changes: Section 1 - The definition of Club is amended to state 30 members as opposed to 50 members. The requirement that a club be in existence for at least three years is deleted. Section 2 - The definition of Restaurant is being amended to coincide with the definition in State law. State law allows the governing body to establish the minimum number of guests that can be seated at one time. The current number in the City Code (30) is not being amended. Section 3 - There is no requirement in Minnesota Statutes that notice of an application or request for transfer of an alcohol license be published in the legal newspaper prior to City Council acting upon the application or request for transfer. This is deleted. Section 4 - Provides that holders of on-sale 3.2 percent malt liquor licenses with sales ofless than $25,000 of3.2 percent malt liquor for the preceding year are exempt from providing proof of financial responsibility (dram shop insurance) imposed by Minnesota Statutes. This is consistent with the exemption provided by Minnesota Statutes. . Alcohol Licensing and Regulation June 18,2007 Page 2 Section 5 - This cleans up the section in the City Code that provides for refunding the license fee to an applicant whose application for a license has been denied. Since there will be no publication of an application in the legal newspaper (deleted in Section 3 above), there would be no publication fees to deduct from a refund. Section 6 - There is no longer a limit to the number oftemporary 3.2 malt liquor licenses an organization may be issued nor to the duration of a temporary license. These are deleted. Section 7 - The amount of general liability (public liability) insurance required for a temporary 3.2 percent alcohol license for sales on public property should be increased to equal the maximum amount ofliability that the City is subject to for injuries on public property. (This is currently $300,000 for injury to anyone person and $1,000,000 for injury to more than one person. These amounts go up on January 1, 2008 and again on January 1, 2009.) Rather than state a specific dollar amount, the new ordinance will reference the amounts established by Minnesota Statutes. A certificate of insurance versus the actually policy is sufficient evidence of insurance coverage for any eligible organization. This is being clarified in the proposed ordinance. Section 8 - This section deletes from the City Code the requirement that an applicant for a license be a citizen of the United States or a resident alien and adds the requirement that an applicant be 21 years of age; this is consistent with State law. Section 9 - This section clarifies current practice. Applications for on-sale, off-sale, and club on- sale liquor licenses are now due at the same time and are taken to City Council for consideration at the same Council meeting. Some time ago, when certificates of insurance were available sooner than they are now, off sale and club on sale liquor license applications were taken to Council for consideration earlier than all other licenses in order to give the liquor control commission more time to process the applications at their end. Section 10 - This section of the proposed ordinance deletes the minimum investment in a building for a new on-sale liquor license and deletes the five classes of on-sale liquor licenses. The minimum investment in a building for a new on-sale license has not been adjusted in over 20 years. Unless Council sees a need to set a minimum investment, given today's climate, it is recommended that a minimum investment be deleted from the City Code, Section 5.32, Subd. 11. As a city of the second class, Shakopee may issue 18 on-sale intoxicating liquor licenses. Legislation now exempts restaurants from this number. All licensees in Shakopee meet the minimum definition of a restaurant. It would appear that having five different classes of restaurants (in order to reserve a specific number in each class) would no longer be necessary. It is recommended that Section 5.32, Subd. 12. be deleted from the City Code. Alcohol Licensing and Regulation June 18,2007 Page 3 Section 11 - This section expands the number of consecutive days for a temporary on-sale liquor license from three to four, consistent with State law. Section 12 - All references to beer, throughout the chapter, are changed to 3.2 percent malt liquor. It is recommended that the City Code continue to be more restrictive than Minnesota Statutes and require that temporary 3.2 percent malt liquor licenses be issued only to eligible organizations having their registered office and principal place of activity within the City. (Section 5.12, Subd. 1 - page 510) It is recommended that the City Code continue to be more restrictive than Minnesota Statutes and not exempt holders of on-sale wine licenses with sales ofless than $25,000 for wine for the preceding year from providing proof of financial responsibility (dram shop insurance) imposed by Minnesota Statutes. (Section 5.09, Subd. 2 - page 494) RECOMMENDATION: Discuss recommended changes and give direction to staff. If Council concurs with staff recommendations, Ordinance No. 779 has been prepared for Council consideration. RECOMMENDED ACTION: If Council concurs with the recommended changes, Offer Ordinance No. 779, Fourth Series, An Ordinance of the City of Shako pee, Minnesota Amending Chapter 5, Liquor, Beer and Wine Licensing and Regulation, and move its adoption. h:\judy\06-18-07 Beer-liquor memo ORDINANCE NO. 779, FOURTH SERIES AN ORDINANCE OF THE CITY OF SHAKOPEE, MINNESOTA AMENDING CHAPTER 5, LIQUOR, BEER AND WINE LICENSING AND REGULATION , THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA ORDAINS: SECTION 1 - City Code Section 5.01, Definitions, 6. Club is amended to read as follows: 6. "Club" means an incorporated organization organized under the laws of the State for civic, fraternal, social, or business purposes, for intellectual improvement, or for the promotion of sports, or a congressionally chartered veterans' organization, which: (1) has more than fifty (50) thirty (30) members; (2) has owned or rented a building or space in a building for more than one (1) year that is suitable and adequate for the accommodation of its members; (3) is directed by a board of directors, executive committee, or other similar body chosen by the members at a meeting held for that purpose. No member, officer, agenda, or employee shall receive any profit from the distribution or sale of beverages to the members of the club, or their guests, beyond a reasonable salary or wages fixed and voted each year by the governing body. 8aeh club or congressionally chartered yeterans' organization must have been in oxistence for at least three years. SECTION 2 - City Code Section 5.01, Definitions, 21. Restaurant is amended to read as follows: 21. "Restaurant" means an establishment, other than a hotel, under the control of a single proprietor or manager, where meals are regularly prepared on the premises and served at tables to the general public, and having a minimum seating capacity having appropriate facilities for the serving of meals, and which shall haye a seating capacity of not less than thirty guests at one time. SECTION 3 - City Code Section 5.02, Applications and Licenses - Procedure and Administration, Subd. 4. Action, Paragraph G. Notice. is deleted in its entirety as follows: G. Notice. No beer, wine or liquor license application, or request for transfer thereof bet\veen persons or locations, shall be acted upon by the Council until at least ten (10) days have elapsed after the date of one publication, in the legal ne':ispaper of the City, of a notice of such application or request for transfer. SECTION 4 - City Code Section 5.09, Financial Responsibility of Licensees, Subd. 2. Exemption, is amended to read as follows: Subd. 2. Exemption. This Section does not apply to on-sale 3.2 percent malt liquor licensees with sales ofless than $25,000 of 3.2 percent malt liquor for the preceding year or off-sale 3.2 percent malt liquor licensees with sales ofless than $50,0000f3.2 percent malt liquor for the preceding: year. beer licensees '..."ith annual sales of beer ofless than $50,000.00. This exemption shall not apply where sales are made on public property. All licensees desiring to claim this exemption must prove entitlement thereto in such a manner as the Council shall by resolution from time to time determine. SECTION 5 - City Code 5.11, Beer License Fees, Subd. 3 Accompany Application, is amended to read as follows: Subd. 3 Accompany Application. Fees provided for herein shall accompany an application for license. If the application is denied the accompanying license fee less the cost of publication of the required notice shall be refunded to the applicant. SECTION 6 - City Code Section 5.12, Temporary Beer License Permitted - Terms and Fees, Subd. 2. Terms, Paragraph B. is deleted in its entirety as follows: B. No applicant shall qualify for a temporary beer license for a period in e~wess of seventy n\'o hours. No organization shall obtain more than ten (10) such temporary licenses during anyone (1) calendar year. SECTION 7 - City Code Section 5.12, Temporary Beer License Permitted - Terms and Fees, Subd. 2. Terms, Paragraph C. is amended to read as follows: C. All such temporary licenses shall be subject to any terms as shall be established by the Council at the time such license is granted, and any violation of such terms shall be grounds for refusing to issue such a temporary license to the violating club, charitable, religious or non-profit organization for a period of up to three (3) years. If the license is for sales on public property, a general public liability insurance policy with limits of at least the amounts established by Minnesota Statutes, Section 466.04 sum of$100,OOO for injury to anyone person and $300,000 for injury to more than one person, shall be a condition to issuance of the license. Provided, ho'.ve',er, ffi-.a.l.l cases where the licensee or applicant for a license is a national or religious organization, tIhe insurance requirement may be satisfied by filing with the City a proper certificate of such insurance along with proof of non-profit status, if applicable in lieu of insurance policy. SECTION 8 - City Code Section 5.32, Liquor License Restrictions, Regulations and Unlawful Acts, Subd. 4, Persons Disqualified, P~agraph A. is amended to read as follows: A. No license under this Chapter may be issued to: (1) a person under 21 years of age: a person not a citizen of the United States or a resident alien; (2) a person who within five years ofthe license application has been convicted of a willful violation of a Federal or State law, or local ordinance governing the manufacture, sale, distribution, or possession for sale or distribution, of alcoholic beverages; (3) a person who has had an alcoholic beverage license revoked within five years of the license application, or to any person who at the time of the violation owns any interest, whether as a holder of more than five percent of the capital stock of a corporate licensee, as a partner or otherwise, in the premises or in the business conducted thereon, or to a corporation, partnership, association, enterprise, business, or firm in which any such person is in any manner interested; or, (4) a person not of good moral character and repute. SECTION 9 - City Code Section 5.32, Liquor License Restrictions, Regulations and Unlawful Acts, Subd. 6. Application is amended to read as follows: Subd. 6. Application. Every person desiring a license shall file with the City Clerk a written and verified application in the form prescribed by the proper agency of the State of Minnesota and with such information as may be required thereon. All applications for license renewal and proof of insurance required by this Chapter shall be submitted to the City at least twenty (20) days prior to the regular Council meeting in May of each year for an off sale license, and at least hventy (20) days prior to the regular meeting in June of each year for an on sale license. Each such application shall also be accompanied by a receipt shoVting the payment of at least the first one half of the current real estate taxes. SECTION 10 - City Code Section 5.32, Liquor License Restrictions, Regulations and Unlawful Acts, Subd. 11. Minimum Investment and Subd. 12. Class and Number of Licenses are hereby repealed in their entirety. SECTION 11 - City Code Section 5.36, Temporary Liquor License, Subd. 3, Terms and Conditions of License, Paragraph B. is amended to read as follows: B. No license shall be issued for more than four (4) thiee (3) consecutive days. SECTION 12 - City Code Chapter 5, Liquor, Beer and Wine Licensing and Regulation is amended to change all references to "beer", throughout the Chapter, to "3.2 percent malt liquor". SECTION 13 - Effective date. This ordinance becomes effective from and after its adoption and publication. Adopted in session of the City Council of the City of Shakopee, Minnesota, held this day of , 2007. Mayor of the City of Shakopee ATTEST: Deputy City Clerk (New language is indicated by underlining and deleted language is indicated by stfikethroughs) Published in the Shakopee Valley News on the day of ,2007.