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HomeMy WebLinkAbout6.q. Resolution and Consent Order Imposing Civil Penalty on FPW, LLC, D/B/A/ MGM Liquor Rosemount4ROSEMOUNTEXECUTIVE SUMMARY CITY COUNCIL City Council Meeting: January 5, 2010 AGENDA ITEM: Resolution and Consent Order Imposing AGENDA SECTION: Civil Penalty on FPW, LLC, D /B. /A MGM Consent Liquor Rosemount PREPARED BY: Gary Kalstabakken, Chief of P ice GENDA NO. ATTACHMENTS: Resolution and Consent Order APPROVED BY: DO RECOMMENDED ACTION: Motion to approve a resolution and consent order imposing civil penalty on FPW, LLC, D /B. /A MGM Liquor Rosemount for a violation of the City's liquor license regulations. BACKGROUND Compliance checks utilizing a cooperating underage purchaser were conducted on December 15, 2009 at each of the City's licensed liquor establishments. The purchaser entered the MGM Liquor and was sold an alcohol beverage by an employee of MGM Liquor. This is a criminal violation by the employee and a violation of the City's ordinance regarding liquor licensees. This is the first violation for sale to an under age person that has occurred at the establishment. ISSUE The sale of an alcoholic beverage to an underage person is a violation of City Code 3 -1: Liquor Regulations. Following the illegal sale, police staff met with the management of the establishment to discuss the violation. In addition, the expectations and requirements of the City Code were reviewed and the policies and procedures of the business related to proper identification of persons purchasing alcohol were discussed. The owner of MGM Liquor has agreed to the terms of the attached Resolution and Consent Order imposing a $500 civil penalty on the license holder for this violation. This penalty amount is consistent with the amount imposed for similar violations in prior years. City Attorney Charlie LeFevere drafted the document. RECOMMENDATION Council is asked to approve the Resolution and Consent Order. RESOLUTION NO. RESOLUTION AND CONSENT ORDER IMPOSING CIVIL PENALTY ON FPW, LLC, D /B /A MGM LIQUOR ROSEMOUNT WHEREAS, the City of Rosemount (the "City ") has issued a license for the sale of alcoholic beverages to FPW, LLC, d/b /a MGM Liquor Rosemount (the "Licensee "); and _ . WHEREAS, an illegal activity has occurred on the licensed premises of the Licensee, specifically, service of an alcoholic beverage to a person under the age of 21 by an employee of Licensee on December 15, 2009, in violation of Minnesota Statutes, Section 340A.503 (the "Violation "); and WHEREAS, the occurrence of the Violation is not disputed by the Licensee; and WHEREAS, the City Council regards such activities as very serious matters warranting the sanctions hereinafter set forth; and WHEREAS, the Licensee has, to date, maintained an establishment that has been relatively free of criminal activity relating directly to the sale of alcohol; and WHEREAS, the Licensee has been generally cooperative in the investigation of this matter, has demonstrated a willingness and desire to work with City staff in resolving this matter without putting the City to the expense of an administrative hearing, has expressed an understanding of the seriousness of the offenses, and has committed to ensuring that such offenses do not reoccur; and WHEREAS, Licensee has worked with staff to identify personnel policies and training, operational practices, and other means intended to minimize or eliminate such violations in the future and to assure a more safe, responsible and lawful liquor operation, which have been set forth in written policies and procedures adopted by Licensee, a copy of which is attached hereto as Attachment One, and hereby made a part hereof (hereinafter the "Policies and Procedures "); and WHEREAS, Licensee has represented, and by execution of a copy of this consent order agreed, that it will faithfully and fully comply with all of the Policies and Procedures set forth in Attachment One; and WHEREAS, on the basis of such representation and agreement by Licensee and assuming continuing compliance therewith, the City is willing to limit sanctions for the Violation to a civil penalty in the amount of Five Hundred Dollars ($500); and 362074v 1 CLL RS220.245 WHEREAS, were it not for such representation and agreement of continuing compliance with the Policies and Procedures by Licensee, the City would not be willing to so limit sanctions and is doing so solely on the basis of such representation and agreements of Licensee and on the basis of the agreement by Licensee that the matter of the sanctions to be imposed for the Violations may be reopened and reconsidered, pursuant to Minnesota Statutes, Section 340A.415, in the event Licensee fails to comply fully with all of the Policies and Procedures at any time during the three (3) year period following the date of this Resolution, all as hereinafter provided; and WHEREAS, the Council has determined that this Consent Order, resolving issues relating to sanctions to be imposed by reason of the above - described violations is reasonable, necessary and in the best interests of the public; and WHEREAS, the Licensee has freely agreed to waive a statement of written charges and a hearing thereon and to pay the civil penalty hereinafter described, for the consideration set forth herein. The Licensee acknowledges and agrees that it freely executed this agreement, without threat of criminal prosecution, for the purpose of avoiding a public hearing and resolving issues relating to sanctions to be imposed by the City as the licensing authority, pursuant to Minnesota Statutes, Section 340A.415. ON THE BASIS OF THE FOREGOING, THEREFORE, IT IS RESOLVED THAT THE CITY COUNCIL ORDERS AND AGREES AS FOLLOWS: 1. The Licensee will pay to the City Finance Director, within ten days of receipt of written notification of approval of this Consent Order by the City Council, the sum of Five Hundred Dollars ($500). 2. Licensee waives a written statement of charges, notice of hearing and hearing to which it is entitled by Minnesota Statutes, Section 340A.415. 3. The undersigned admits the occurrence of the Violation. 4. The City will impose, as the sole civil sanction for the Violations, a civil penalty in the amount of $500 payable as set forth in paragraph 1 hereof. This agreement shall not limit the right of the City to pursue civil remedies or to take any action with respect to the license that is authorized by state law or City Code for any activity to which this agreement does not specifically apply and that is a violation of state law or City Code. 5. Except as provided in paragraph 6, in the event of future violations of state law or City Code by Licensee, no additional penalty shall be imposed for unlawful activity covered by this agreement. However, admissions of unlawful activity described herein may be taken into consideration in determining appropriate sanctions in any future cases. 6. In the event the City Council determines that Licensee has failed to comply fully with the Policies and Procedures at any time during the three year period following the date of 362074v1 CLL RS220 -245 2 this Resolution, Licensee agrees that the City may revoke or suspend the Licensee's license or impose civil penalties for the Violations pursuant to Minnesota Statutes, Section 340A.415, provided the total penalty including the penalty agreed to pursuant to paragraph 1 hereof shall n t exceed amounts authorized by law. 7. Licensee understands and agrees: a. That this agreement does not constitute an agreement not to bring charges for activities described herein; b. That a decision whether to bring any charges rests within the discretion the City prosecuting attorney, the County attorney, or other authorized law enforcemi agencies; C. That the Licensee freely enters into this agreement without any from the City that no criminal charges will be brought; d. That this agreement is entered into for the sole purpose of resolving settling any potential civil sanctions imposed pursuant to Minnesota Statutes, Sec 340A.415, and not for the purpose of resolving or settling any potential criminal is: and e. That in the event criminal charges are brought against the undersigned, Licensee or any of its employees for activities described herein, Licensee will not con the validity of this agreement, repudiate, or otherwise challenge this agreement in way, by reason of the initiation or prosecution of such criminal proceedings. FPW, LLC, d/b /a MGM LIQUOR ROSEMOUNT Lb-Z Its By Order of the City Council of the City of Rosemount this _ day of 2010. ATTEST: City Clerk 362074v CLL RS220 -245 3 Mayor