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6.a Brookside Pub Hearing on Liquor License Violation Staff Report Date of Meeting: May 21, 2019 To: City Council From: Brenda Eklund, Deputy Clerk Re: Hearing on Liquor License Violation Background: • On October 25, 2018, Brookside Pub failed an alcohol compliance check conducted by the Washington County Sheriff’s Office, when a alcohol was served to an underage buyer. • On April 2, 2019 a pretrial conference was for the violation. The server entered a plea of guilty to the charge of furnishing alcohol to a minor. The agreed upon dispositions was a fine of $387 including surcharge and 90 days in jail, with all 90 days suspended for one year on the condition he be law abiding and have no same or similar offenses. • City Ordinance No. 93, Adopting Liquor Regulations, provides that the City Council hold a hearing on a violation of the ordinance or applicable statutes, to consid er the violation and the proposed penalty, and hear any person who may wish to speak. On April 26, 2019 Brookside Pub’s owner was notified that the city would hold the hearing on May 21, 2019. • For a first violation Section 36 of the Ordinance specifies that for the first violation within any three-year period the minimum suspension is one day in addition to any criminal or civil penalties which may be imposed. A minimum presumptive civil penalty of $500 must be imposed in addition to any suspension for a first violation unless the license is revoked. Recommendation: The City Council should hold the hearing, allowing representatives of Brookside Pub and any other persons to speak. At conclusion of the hearing, the Council should make findings regarding the violation and impose the appropriate penalties. A draft resolution has been prepared for the Council’s use. The minimum penalties have been included in the draft but may be altered by the Council. The Council will need to determine a date or dates on which any suspension will be served. Section 36. SUSPENSION AND REVOCATION. (A) The Council shall either suspend for a period not to exceed 60 days or revoke any liquor license upon finding that the licensee has failed to comply with any applicable statute, regulation, or provision of this Ordinance relating to liquor. Except in cases of lapse of proof of financial responsibility, no suspension or revocation shall take effect until the licensee has been afforded an opportunity for a hearing pursuant to the Administrative Procedures Act, M.S. §§ 14.57 to 14.70, as it may be amended from time to time. The Council may act as the hearing body under that act, or it may contract with the Office of Hearing Examiners for a hearing officer. (B) The following are the minimum periods of suspension or revocation which shall be imposed by the Council for violations of the provisions of this Ordinance or M.S. Ch. 340A, as it may be amended from time to time or any rules promulgated under that Ordinance as they ma y be amended from time to time: (1) For commission of a felony related to the licensed activity, sale of alcoholic beverages while the license is under suspension, sale of intoxicating liquor where the only license is for 3.2 percent malt liquor, or violation of §4, the license shall be revoked. (2) The license shall be suspended by the Council after a finding under division (A) that the licensee has failed to comply with any applicable statute, rule, or provision of this Ordinance for at least the minimum periods as follows: (a) For the first violation within any three-year period, at least one day suspension in addition to any criminal or civil penalties which may be imposed. (b) For a second violation within any three-year period, at least three consecutive days suspension in addition to any criminal or civil penalties which may be imposed. (c) For the third violation within any three-year period, at least seven consecutive days suspension in addition to any criminal or civil penalties which may be imposed. (d) For a fourth violation within any three-year period, the license shall be revoked. (3) The Council shall select the day or days during which the license will be suspended. (C) Lapse of required proof of financial responsibility shall effect an immediate suspension of any license issued pursuant to this Ordinance or state law without further action of the Council. Notice of cancellation or lapse of a current liquor liability policy shall also constitute notice to the licensee of the impending suspension of the license. The holder of a license who has received notice of lapse of required insurance or of suspension or revocation of a license may request a hearing thereon and, if a request is made in writing to the Clerk, a hearing before the Council shall be granted within ten days. Any suspension under this Subdivision (C) shall continue until the Council determines that the financial responsibility requirements of state law and this Ordinance have again been met. (D) The provisions of §99 pertaining to administrative penalty may be imposed in addition to or in lieu of any suspension or revocation under this Ordinance. Penalty, see §99. Section 99. PENALTIES. (A) Any person violating the provisions of this Ordinance or M.S. Ch. 340A as it may be amended from time to time or any rules promulgated under this Ordinance as it may be amended from time to time is guilty of a misdemeanor and upon conviction shall be punished as provided by law. (B) The Council shall impose a civil penalty of up to $2,000 for each violation of M.S. Ch. 340A, as it may be amended from time to time, and of this Ordinance. Conviction of a violation in a court of law is not required in order for the Council to impose the civil penalty. A hearing under the Administrative Procedures Act, M.S. §§ 14.57 to 14.70, as it may be amended from time to time, is not required before the penalty is imposed, but the Council shall hold a hearing on the proposed violation and the proposed penalty and hear any person who wishes to speak. Non-payment of the penalty is grounds for suspension or revocation of the license. The following is the minimum schedule of presumptive civil penalties which must be imposed in addition to any suspension unless the licenses is revoked: (1) For the first violation within any three-year period, $500. (2) For the second violation within any three-year period, $1,000. (3) For the third and subsequent violations within any three-year period, $2,000. (C) The term "violation" as used in this section includes any and all violations of the provisions of this Ordinance, or of M.S. Ch. 340A, as it may be amended from time to time or any rules promulgated under this Ordinance as they may be amended from time to time. The number of violations shall be determined on the basis of the history of violations for the preceding three-year period. Revocation shall occur within 60 days following a violation for which revocation is imposed. Passed and adopted by the City Council of the City of Scandia this 2nd day of January, 2007. Dennis D. Seefeldt, Mayor ATTEST: Anne Hurlburt, Clerk/Administrator