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HomeMy WebLinkAboutItem 06.nMarch 29, 2011 Proposed Action Staff recommends adoption of the following motion: Adopt ordinance amending Title 3, Chapter 1 of the Lakeville City Code concerning alcoholic beverages. Overview ORDINANCE AMENDING TITLE 3, CHAPTER 1 OF THE LAKEVILLE CITY CODE CONCERNING ALCOHOLIC BEVERAGES The City Clerk is recommending several amendments to the City Code related to liquor licensing. Many of these are housekeeping in nature and address some obsolete language in the code. Changes in public hearing requirements will help streamline the administrative process for the license applicants. The proposed ordinance was prepared by the City Attorney and reviewed by the City Council at your March 28 work session. The ordinance would become effective immediately upon adoption. Primary Issues to Consider See attached report. Supporting Information ➢ City Clerk's report outlining proposed amendments ➢ Redlined ordinance with the proposed changes ➢ Ordinance for adoption Charlene Friedges, Cit Item No. Financial Impact: $ Budgeted: Y/N Source: Related Documents (CIP, ERP, etc.): Notes: Memorandum To: City Council From: City Clerk Copy: City Administrator Date: March 25, 2011 Subject: Liquor Ordinance Amendment City of Lakeville Administration The City Council is being asked to consider several amendments to the City Code related to liquor licensing. Many of these are housekeeping in nature and address some obsolete language in the Code. The proposed changes are as follows: Notice of Hearing: City Code currently requires the City Council to instruct the Clerk to publish the public hearing notice 10 days in advance of the hearing. Analysis: Last December, D & D Restaurants submitted a liquor license application to take over operation of the Molly Cool's restaurant. The Police Department expedited its background investigation on the applicant, who had previously held a 3.2 malt liquor license. However, we couldn't schedule the public hearing until after the City Council received the application and instructed the Clerk to do so. Recommendation: Allow the City Clerk to publish the public hearing notice upon receipt of the report and recommendation by the Police Department. Hearing on Renewal Applications: City Code currently requires the City Council to hold a public hearing to consider renewal applications upon 10 days published notice in the official newspaper. Analysis Last year, Ronin Cafe was not able to submit its liquor license renewal application in time for the June 21 public hearing due to a financial hardship. The renewal application was submitted on June 28 however, a public hearing could not be scheduled until 10 days published notice was given. As a result, there was a three week lapse in the liquor license at this establishment. Recommendation: Eliminate the requirement for a public hearing on renewal applications. The City Council would continue to receive a report and recommendation by the Police Department. This would not preclude discussion by the Council or members of the public prior to the Council granting renewals. Hours of Operation: City Code only references 3.2 percent malt liquor; it should apply to all liquor. Ownership of Equipment: City Code states that no equipment or fixture shall be owned by any manufacturer or distiller. City Attorney concurs that this requirement is not necessary. Liability Insurance: The language in the City Code is inconsistent with Minnesota Statutes. City Attorney recommends that requirements of Minnesota Statute should be incorporated by reference. Persons Ineligible for License: City Code implies that license shall not be granted if a manager is not eligible pursuant to the provisions of this chapter. City Code also states that licenses shall not be renewed if the licensee is not a resident of the State of Minnesota. Analysis: Police Department has indicated that the BCA does not allow release of information on anyone except the license applicant. Residency requirement is not in State Statute and has not been enforced in Lakeville. Recommendation: Change Manager to Operating Officer and delete residency requirement. Consumption in Public: This section is redundant with 3- 1- 12 -1C. City Attorney concurs that this section can be deleted. Attachments THE CITY COUNCIL OF THE CITY OF LAKEVILLE, MINNESOTA ORDAINS: SECTION 1. Sections 3- 1- 6 -2(A) and 3- 1- 6 -2(C) of the Lakeville City Code are amended to provide: A. Notice of Hearing: Upon receipt of the written report and recommendation by the Police Department, and within twenty (20) days thereafter, the Clerk shall cause to be published in the official newspaper ten (10) days in advance, a notice of hearing to be held by the Council, setting forth the date, time and place when the hearing will be held, the name of the applicant, the premises where the business is to be conducted, the nature of the business and such other infouuation as the Council may direct. C. Hearing on Renewal Applications: Hearings are not required on renewal applications. 155717v01. RNK:01 /11/2011 ORDINANCE NO. CITY OF LAKEVILLE DAKOTA, COUNTY, MINNESOTA AN ORDINANCE AMENDING TITLE 3, CHAPTER 1 OF THE LAKEVILLE CITY CODE CONCERNING ALCOHOLIC BEVERAGES SECTION 2. Section 3 -1 -8 -5 of the Lakeville City Code is amended to provide: The provisions of Minnesota Statutes Section 340A.504, with reference to the hours of sale are hereby adopted and made a part of this chapter as if fully set out herein. Persons other than employees of the licensee may not be in the premises from thirty (30) minutes after the sale of 3.2 percent malt liquor or intoxicating liquor is prohibited until thirty (30) minutes before the sale is permitted. SECTION 3. Section 3- 1 -8 -8, of the Lakeville City Code is deleted. SECTION 4. Section 3- 1 -9 -2, of the Lakeville City Code is amended to provide: All applicants for any type of intoxicating liquor, 3.2 percent malt liquor, or wine license, must, as a condition to the issuance of the license, maintenance of the license and renewal of the license, demonstrate proof of financial responsibility with regard to liability imposed by Minnesota Statutes, Section 340A.801 to the city. The minimum requirements for proof of financial responsibility are set forth in Minnesota Statutes Section 340A.409. ATTEST: 155717v01 RNK:0 U t 1/201 1 SECTION 5. Section 3- 1- 11 -11(C) of the Lakeville City Code is amended to provide: C. Operating Officer: No license shall be granted to a corporation that does not have an operating officer who is eligible pursuant to the provisions of this Chapter. SECTION 6. Section 3- 1- 11(E), of the Lakeville City Code is deleted. SECTION 7. Section 3 -1 -13 of the Lakeville City Code is deleted. SECTION 8. Effective Date. This ordinance shall be effective upon passage and publication. ADOPTED this 4th day of April, 2011, by the City Council of the City of Lakeville, Minnesota. Charlene Friedges, City Clerk CITY OF LAKEVILLE BY: 2 Mark Bellows, Mayor THE CITY COUNCIL OF THE CITY OF LAKEVILLE, MINNESOTA ORDAINS: SECTION 1. Sections 3- 1- 6 -2(A) and 3- 1- 6 -2(C) of the Lakeville City Code are amended to provide: A. Notice of Hearing: Upon receipt of the written report and recommendation by the Police Department, and within twenty (20) days thereafter,,the Clerk shall,cause to be published in the official newspaper ten (10) days in advance, a notice of hearing to be held by the Council, setting forth the date, time and place when the hearing will be held, the name of the applicant, the premises where the business is to be conducted, the nature of the business and such other information as the Council may direct. C. Hearing on Renewal Applications: Hearings are not required on renewal applications„ 155717v01 RNK:01 /11/2011 ORDINANCE NO. CITY OF LAKEVILLE DAKOTA, COUNTY, MINNESOTA AN ORDINANCE AMENDING TITLE 3, CHAPTER 1 OF THE LAKEVILLE CITY CODE CONCERNING ALCOHOLIC BEVERAGES SECTION 2. Section 3 -1 -8 -5 of the Lakeville City Code is amended to provide: The provisions of Minnesota Statutes Section 340A.504, with reference to the hours of sale are hereby adopted and made a part of this chapter as if fully set out herein. Persons other than employees of the licensee may not be in the premises from thirty (30) minutes after the sale of 3.2 percent malt liquor or intoxicating liquor is prohibited until thirty (30) minutes before the sale is permitted. SECTION 3. Section 3- 1 -8 -8, of the Lakeville City Code is deleted: Deleted: the Council shall instinct { Deleted: to Deleted: No less than ten (10) nor more than thirty (30) days after the date for submitting renewal applications, the Council shall hold a public hearing. Notice of the time and place of the meeting and the fact that renewal applications will be considered shall be published in the official newspaper ten (10) days in advance of Inc hearing. Opportunity shall be given to any person to be heard for or against the gaming of a renewal license. Deleted: No equipment or fixture in any licensed place shall be owned in whole or in part by any manufacturer or distiller of intoxicating liquor except such as shall be expressly permitted by state }awl! Deleted: This section does not apply to 3.2 percent malt liquor licensees who, by affidavit, establish that they had sales of less than twenty five thousand dollars ($25,000.00) of 3.2 percent malt liquor for the preceding year, or off -gale 3.2 percent malt liquor licensees with sales of less than fifty thousand dollars ($50,000.00) of 3.2 percent malt liquor for the preceding year, or to holders of on -sale wine licenses with sales of less than Twenty five thousand dollars ($25,000.00) of wine for the preceding year. Proof of financial responsibility may be given by filing one of the following:t; 9 A. A certificate that there is in effect for the period of the license an insurance policy or pool providing the following minimum coverage:¶ I. Three hundred thousand dollars ($300,000.00) because of bodily injury to one or more persons in any one occurrence and in the amount of three hundred thousand dollars ($300,000.00) 1 because of injury to or destruction of property of others in any one occurrence;'. 2. Three hundred thousand dollars ($300,000.00) for loaa of means of support of one or more persona in any one occurrence; 011 n B. A certificate that the city has in effect for its own liquor operation an insurance policy or pool providing the following minimum coverage:Q 1. Five hundred thousand dollars ($500,000.00) because of bodily injury to one or more persons it any one occurrence and in the amount of five hundred thousand dollars ($500,000.00) because of injury to or destruction of property of others in any one occurrence;f 2. Five hundred thousand dollars ii." deleted: Manager Required Deleted: Residency Requirements; Renewal: A license will not be renewed if, in the case of an individual, the licensee is not a resident of the State of Minnesota at time of the date for renewal; if, in the case of a partnership, the managing partner is not a resident of the State at the time of the renewal; or in the case of a corporation, if the operating officer is not a resident of the State at the time of the date of renewal. The time for establishing residency within the State may, for good cause, be extended by the Council. Deleted: No intoxicating liquor shall be sold or consumed on a public highway or street. No one shall consume intoxicating liquor or have in his/her possession any bottle or receptacle containing intoxicating liquor which is open while in the parking area of any chopping center L or other commercial esmblislunent. SECTION 4. Section 3- 1 -9 -2, of the Lakeville City Code is amended to provide: All applicants for any type of intoxicating liquor, 3.2 percent malt liquor, or wine license, must, as a condition to the issuance of the license maintenance of the license and renewal of the license, demonstrate proof of financial responsibility with regard to liability imposed by Minnesota Statutes, Section 340A.801 to the city. The minimum re.uirements for .roof of financial res.onsibilit are set forth in Minnesota Statutes Section 340A.409. SECTION 5. Section 3- 1- 11 -11(C) of the Lakeville City Code is amended to provide: C. Operating Office[; No license shall be granted to a corporation that does not have an operating officer who is eligible pursuant to the provisions of this Chapter. SECTION 6. Section 3- 1- 11(E), of the Lakeville City Code is deleted: SECTION 7. Section 3 -1 -13 of the Lakeville City Code is deleted: SECTION 8. Effective Date. This ordinance shall be effective upon passage and publication. ADOPTED this day of , 2011, by the City Council of the City of Lakeville, Minnesota. 155717v01 2 RNK:01 /11/2011