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HomeMy WebLinkAbout2012-08-08 PACKET 04.M.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # DATE 8/8/2012 PREPARED BY City Clerk Caron Stransky ORIGINATING DEPARTMENT DEPARTMENT HEAD COUNCIL ACTION REQUEST Consider passing an ordinance decreasing the On -sale Intoxicating Liquor License Fee from $9,500.00 to $6,000.00 per calendar year. STAFF RECOMMENDATION Pass the ordinance. SUPPORTING DOCUMENTS ® MEMO /LETTER: Memo from Caron Stransky ❑ RESOLUTION: ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: ❑ OTHER: Attachments. ADMINISTRATORS COMMENTS Yce _ Administrator Date COUNCIL ACTION TAKEN: ❑ APPROVED ❑ DENIED ❑ OTHER Document2 ORDINANCE NO. [NUMBER] AN ORDINANCE FOR THE CITY OF COTTAGE GROVE, MINNESOTA, AMENDING CITY FEES RELATING TO LIQUOR LICENSES The City Council of the City of Cottage Grove, Washington County, Minnesota, does hereby amend city fees as follows: SECTION 2. EFFECTIVE DATE This ordinance shall be in full force and effect from and after its passage and publication according to law. Passed this 8th day of August 2012. Myron Bailey, Mayor Attest: Caron M. Stransky, City Clerk Published in the South Washington County Bulletin on SECTION 1. AMENDMENT Fees of the City of Cottage Grove, County of Washington, State of Minnesota, shall be amended as follows: From: Director of Public Safety Craig A. Woolery M vLI/ Date: July 30, 2012 Re: LIQUOR LICENSE FEES INTRODUCTION You requested that Public Safety review the summary of fees for liquor licenses and make a recommendation on whether the fee should remain the same of be reduced. 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 an amount to reflect the cost of issuing a license and costs directly related to liquor enforcement. Recently, you and staff did conduct a survey of 30 municipalities on the liquor license fee for on sale intoxicating licenses. The survey found that some cities have a range while others have one fee. After reviewing the survey, Cottage Grove was the sixth highest at $9,500 with Brooklyn Park being the highest at $14,000. The low was $2,000 which was Red Wing and Forest Lake. 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 charges throughout the State in 2000. In March of 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. At that time, it was recommended that fees were to be increased. The recommendation was later approved. Captain Koerner was directed to review the current survey and evaluate the current fees. After reviewing and evaluating the survey, the Public Safety health and Welfare Commission was asked to review Public Safety's findings and recommendations. One area addressed in State law allows the license fee to cover the costs directly related to costs of enforcement. This is difficult to break down as there are many variables and there have been significant changes since the original study in 2000. One area evaluated is DUI enforcement. It is estimated that 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 time. This again is a very difficult estimation as there are many factors such as 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. 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 ". Another area that has changed from the initial study (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 needed to process a DUI. FINDINGS With the above mentioned changes, the Public Safety Department recommended that the liquor license fee 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 accurately reflects the cost of issuing a license and costs directly related to liquor enforcement. The overall average for the fee is $6,511. Public Safety wanted to find a balance with enforcement costs as well as having Cottage Grove be fair with current businesses as well as attracting new businesses. At the July 26 2012, the Public Safety, Health and Welfare Commission did review the survey and Public Safety Department's recommendation to reduce the fee. The Commission unanimously approved the recommendation to decrease the fee of On -Sale Intoxicating Liquor License to $6,000. RECOMMENDATION The Public Safety, Health and Welfare Commission recommends decreasing the fee of On -sale Intoxicating Liquor License to $6,000. I_fiiM City of Cottage Grove Memo Public Safety To% Members of the Public Safety, Health and Welfare Commission From: Deputy Director of Public Safety Peter J. Koerner t 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. Average Overall 6,511 * Noted thatsome municipalities only have one set fee while other municipalities have a range. On Sale Intoxicating Liquor Fee Survey