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HomeMy WebLinkAbout2012-07-26 PACKET 04.B. LIQUOR LICENSE FEES(M City of Cottage Grove Public Safety To: Members of the Public Safety, Health and Welfare Commission From: Deputy Director of Public Safety Peter J. Koerner Date: July 10, 2012 Re: LIQUOR LICENSE FEES In March 2003, the City Council reviewed future revenues and expenditures, including license fees, and authorized staff to schedule a public hearing to formally consider increasing liquor license fees in 2004 and beyond. The Office of the City Clerk had conducted an extensive study on our intoxicating and non - intoxicating liquor license fees. The study included a compilation of the fees charged throughout the State in 2000. At that time, it was recommended that fees were to be increased. The recommendation was later approved. Minnesota Statutes sets the limits on what fees may be charged for liquor licenses. However, under Minnesota Statues, the City has the authority to set its own fees for `on- sale" intoxicating liquor and 3.2 beer ("on sale" and "off sale ") retail licenses in amount to reflect the cost of issuing a license and costs directly related to liquor enforcement. Under the Statute, affected licensees must receive notice of the proposed increase at least 30 -days before the hearing. Off Sale Intoxicating, On Sale Club Intoxicating, and On Sale Wine Intoxicating liquor fees are currently set at the maximum amounts allowed under Minnesota Statues and cannot be increased. One area addressed in the State law allows the license fee to cover the costs directly related to costs of enforcement. It is difficult to break down the enforcement costs. One area is DUI enforcement. It is estimated that the each DUI arrests takes an average of five (5) hours to process each DUI from issuance to resolution. This includes the arrest, paperwork and subsequent court. This again is a very difficult estimation to make as there are so many factors such as the level of arrest, did the defendant go to jail, and was there forfeiture involved, etc. There are also costs associated with the enforcement of Non -DUI liquor incidents, i.e. domestic calls, damage to properties, disorderly conducts, loud parties, reckless and /or careless driving, speeding and calls for service to a liquor license. Another additional expense is the cost to conduct a minimum of two alcohol compliance checks and the costs associated with an appeal. Recently, the City Clerk did conduct a survey of 30 municipalities on the liquor license fee for on sale intoxicating licenses. Cottage Grove was the sixth highest at $9,500 with Brooklyn Center being the high at $14,000. The low was $2,000 for both Red Wing and Forest Lake. Public Safety was asked to review the summary of fees and make a recommendation on whether the fee should remain the same or be reduced. The overall average for the fee is $6,511. Public Safety wants to find a balance with enforcement costs as well as having Cottage Grove being fair with current businesses as well as attracting new businesses. Since the original study, there have been some significant changes with costs as well as time spent on enforcement. Cottage Grove partners with Washington County Agencies with the Office of Traffic Safety and receives grant money for the enforcement of DUI laws. This program was formerly known as "Safe and Sober" and "Operation Night Cap ". However, another area that has changed from the initial study in 2003 (that was used for the initial fees) is the amount of time to process a DUI. Technology continues to decrease the amount of time such as electronic charging and electronic paperwork that is immediately uploaded to the State. Many of these advancements have decreased the time. With the above mentioned changes, the Public Safety Department recommends that the liquor license fee to be decreased to $6,000. While the number may appear to be arbitrary, we believe that with all factors considered being just under the average for the 30 municipalities is accurately reflect the cost of issuing a license and costs directly related to liquor enforcement Recommendation — To decrease the fee of On Sale Intoxicating Liquor License to $6,000. cc: Director of Public Safety Craig A. Woolery Attch. On Sale Intoxicating Liquor Fee Survey Range - LOW * Range - HIGH Average Low 5,908 Average High 7,114 Average Overall 6,511 * Noted that some municipalities only have one set fee while other municipalities have a range. Woodbury 10,000 Brooklyn Center 14,000 Bloomington 9,600 Maplewood 11,000 Got ge G vex.. 900 Shakopee 10,570 Edina 8,800 Woodbury 10,000 Eden Praire 8,750 Bloomington 9,600 Minnetonka 8,600 Imo age Grovel , 9,00 Plymouth 8,240 Win' Fridley 9,000 St. Louis Park 8,500 New Brighton 9,000 Maple Grove 8,000 Edina 8,800 Golden Valley 8,000 Eden Praire 8,750 Burnsville 7,300 ' Minnetonka 8,600 Maplewood 7,000 St. Louis Park 8,500 Columbis Heights 6,500 Plymouth 8,240 Andover 5,250 IF Columbis Heights 8,000 Lakeville 5,500 Golden Valley 8,000 Fridley 6,000 ` Maple Grove 8,000 New Brighton 5,200 Burnsville 7,300 Brooklyn Center 5,000 Apple Valley 6,600 Oakdale 5,000 Arden Hills 6,600 Chaska 4,605 Lakeville 6,500 Lino Lakes 4,500 = Andover 5,250 Apple Valley 4,400 Z v Oakdale 5,000 Hastings 4,000 Chaska 4,605 Arden Hills 3,300 Lino Lakes 4,500 Shakopee 3,705 Rosemount 4,500 Rosemount 3,000 Hastings 4,000 So. St. Paul 2,500 jMSo. St. Paul 2,500 St. Paul Park 2,500 St. Paul Park 2,500 Forest Lake 2,000 Forest Lake 2,000 Red Wing 2,000 Red Wing 2,000 Average Low 5,908 Average High 7,114 Average Overall 6,511 * Noted that some municipalities only have one set fee while other municipalities have a range.