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7.a Hearing on Scandia Olde Towne Liquor License violation Staff Report Date of Meeting: August 18, 2020 To: City Council From: Brenda Eklund, City Clerk Re: Hearing on Liquor License Violation at Scandia Olde Towne Liquor Background: • On December 30, 2019, Scandia Olde Towne Liquor failed an alcohol compliance check conducted by the Washington County Sheriff’s Office, when an employee completed a sale of alcohol to a person under the age of 21. The police report stated that the cashier did not ask for identification from the underage buyer. • A complaint was filed with the District Court stating that there is probable cause to believe the defendant committed the offense of sale of alcohol to a person under the age of 21. • On February 18, 2020 the defendant appeared in court and entered a plea of guilty to the charge of providing alcohol to a person under the age of 21. 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 to be law abiding and have no same or similar offenses. This was a permanent misdemeanor sentence, with the person placed on unsupervised probation for one year. City Prosecutor Mike Welch noted that the employer, Adrian Franssen, accompanied his employee to the hearing and wrote “In the many years that I have been handling this type of case, I don’t remember any other cases where the employer has appeared with the charged employee. Hopefully this is a sign that the establishments are taking it seriously and that it has been a learning experience for all concerned.” • Scandia’s Code of Ordinances, Chapter 110, Liquor Regulations, provides that the City Council hold a hearing on a violation of the ordinance or applicable statutes, to consider the violation and the proposed penalty, and hear any person who may wish to speak. On June 30, 2020 Scandia Olde Towne Liquors’ owner was notified that the city would hold the hearing on July 21, 2020. Due to a conflict, Mr. Franssen requested the hearing be held at the next regular meeting of the City Council on August 18, 2020. • This is the second violation to occur at Scandia Olde Towne Liquor in a 3-year period. On October 16, 2018, the City Council held a hearing on a liquor license violation for a similar offense and penalized the business for a first-time violation. § 110.31 of the Ordinance specifies that for a second violation within any three-year period the minimum suspension is at least three consecutive days in addition to any criminal or civil penalties which may be imposed. A minimum civil penalty of $1,000 must be imposed in addition to any suspension for a second violation unless the license is revoked. Recommendation: The City Council should hold the hearing, allowing representatives of Scandia Olde Towne Liquor and any other persons to speak. At the 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 the dates on which any suspension will be served.