HomeMy WebLinkAbout2.e. Rosemount Liquor - License ViolationAGENDA ITEM: Rosemount Liquor License Violation
Q►nNDA SECTION: G 100
PREPARED BY: Gary Kalstabakken, Chief of Police
AGENDA NO. 2.4E.
ATTACHMENTS: Compliance Check Spreadsheet,
Resolution and Consent Order, Penalty
Matrix of Various Cities, Lakeville
Ordinance
APPROVED BY:
RECOMMENDED ACTION:
ROSEt VIOLINT EXECUTIVE SUMMARY
CITY COUNCIL
City Council Work Session: May 6, 2008
ISSUE
The Police Department conducted alcohol compliance checks on April 24, 2008. Rosemount Liquor
failed the check by having an employee sell to the under age buyer. This is Rosemount Liquor's fourth
violation for under age sale since March 24, 2005. The owners /licensees signed a Consent Order and
Council approved the Order in July 2007 for previous violations. This Order suspended eleven (11) days
of a license suspension on the condition that no further violations occurred within a 36 month period of
the last violation on November 22, 2006.
BACKGROUND
Following the failure of the compliance check on April 24, 2008, a letter was delivered to Rosemount
Liquor advising them that the eleven (11) day suspension would be imposed from April 28 through May 9,
2008. The business's attorney responded with a letter stating they were challenging the imposition of the
suspension and would remain open. In conversations between City Attorney LeFevere and the attorney
for Rosemount Liquor, Rosemount Liquor has asked for limitations on the imposition of the suspension.
Their position is that any suspension should only be served Monday through Wednesday and that the
suspension's length is excessive. In addition, they argue that any penalty for the violation of April 24
should also give credit for the lengthy suspension already served as part of the July 2007 Consent Order.
Furthermore, the attorney suggested that Rosemount's penalties are out of line with other cities' penalties.
Their position is that the penalties are severe in length of suspension and the length of time used to
calculate the number of violations. He specifically suggested reviewing the practices of the cities of
Burnsville, Bloomington, Plymouth and Edina as examples. A matrix including these cities and others is
included for Council review. There is not a consistent time frame for "looking back" to determine the
number of violations. It ranges from the longest of a five year period (Bloomington) to the shortest of
two years (Burnsville but only for sale to under age persons. Other license violations are reviewed for up
to 4 years.)
Council direction is sought on how to proceed in resolving these liquor license violations.
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a
RESOLUTION NO. 56
RESOLUTION AND CONSENT ORDER IMPOSING CIVIL
PENALTY AND SUSPENSION ON PCS LIQUORS, LLC, d/b /a
ROSEMOUNT LIQUOR MART
WHEREAS, the City of Rosemount (the "City has issued a license for the sale of
alcoholic beverages to PCS Liquors, LLC, d/b /a Rosemount Liquor Mart (the "Licensee and
WHEREAS, 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 February 23, 2006, and November 22, 2006, in violation of Minnesota Statutes
Section 340A.503 (the "Violations and
WHEREAS, the occurrence of the Violations 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
Violations to a civil penalty in the amount of One Thousand Dollars ($1,000.00) and a three -day
suspension of Licensee's license for the February 23, 2006, violation; and, a civil penalty in the
305053v1 MDT R5220 -245
1
amount of One Thousand Five Hundred Dollars ($1,500.00) and a twenty one -day suspension of
Licensee's license for the November 22, 2006, violation; and
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 Two
Thousand Five Hundred Dollars ($2,500.00).
2. The Licensee's license will be suspended for a total of thirteen (13) consecutive
days between the dates of October 1, 2007 through October 6, 2007; October 8, 2007 through
October 13, 2007; and, October 15, 2007. The City will stay the remaining eleven (11) days of
the suspension and only impose it if another violation occurs within 36 months from November
22, 2006. If Licensee fails an under -age compliance check, the City will immediately impose the
remaining 11 -day suspension. If any other liquor license violation occurs, the 11 -day suspension
will be imposed after Licensee is provided due process.
3. Licensee waives a written statement of charges, notice of hearing and hearing to
which it is entitled by Minnesota Statute Section 340A.415.
4. The undersigned admits the occurrence of the Violations.
5. The City will impose, as the sole civil sanction for the Violations, a civil penalty
in the amounts of $1,000.00 and $1,500.00 and suspension of the license as set forth in paragraph
305053v1 MDT RS220 -245
2
2. This agreement shall not limit the right of the City to pursue civil remedies or to take any
action with respect to the license which is authorized by state law or City Code for any activity to
which this agreement does not specifically apply and which is a violation of state law or City
Code.
6. Except as provided in paragraph 7, 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.
7. 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
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 Statute Section 340A.415,
provided the total penalty including the penalty agreed to pursuant to paragraph 1 hereof shall
not exceed amounts authorized by law.
8. Licensee understands and agrees:
a. That this agreement does not constitute an agreement not to bring criminal
charges for activities described herein;
b. That a decision whether to bring any charges rests within the discretion of
the City prosecuting attorney, the County attorney, or other authorized law enforcement
agencies;
c. That the Licensee freely enters into this agreement without any promises
from the City that no criminal charges will be brought;
d. That this agreement is entered into for the sole purpose of resolving and
settling any potential civil sanctions imposed pursuant to Minnesota Statute Section
340A.415, and not for the purpose of resolving or settling any potential criminal issues;
and
e. That in the event criminal charges are brought against the undersigned, the
Licensee or any of its employees for activities described herein, Licensee will not contest
the validity of this agreement, repudiate, or otherwise challenge this agreement in any
way, by reason of the initiation or prosecution of such criminal proceedings.
305053v1 MDT RS220 -245
3
PCS LIQUORS, L d/b /a
ROSE O T OR MART
By
Its N /nW.c\9 -r`
2007.
ATTEST:
City Clerk
By Order of the City Council of the City of Roserhount this,.
305053v1 MDT RS220 -245
4
Mayor
ATTACHMENT ONE
Policies and Procedures
1. Employees who make an illegal sale of alcohol to under age persons will be
terminated.
2. The principal owners of Rosemount Liquor Mart have taken on a more active role in
operation of the store. One of the principals has taken over the day -to -day operations
of the store.
3. Age verification is mandatory for all persons regardless of perceived age. Without
proper identification, no sale is allowed.
4. Employees have various resources available at the cashier stations to assist in
preventing illegal sales, this includes an age verification magnetic card reader,
manuals on detecting fake identification cards, and calendars with the "On or Before"
date displayed.
5. All employees are required to read and sign the store's policy on Sales and
Identification (Attached).
305053v1 MDT RS220 -245
263592v1 (SJS)
RS215 -6 A
PCS Liquors, LLC
d /bla Rosemount Liquor Mart
Sales Identification Policy
1) It is the policy of Rosemount Liquor Mart that we do not sell ANYTHING to persons under the age
of 21. This includes non alcoholic beer mixes, soda, ice, cigarettes, etc. This policy is to prevent
anyone from selling to a familiar face. Children are allowed in the store if accompanied by a parent
or guardian.
2) It is Rosemount Liquor Mart's policy to ask for proper identification from anyone who appears to
be under the age of 30.
3) Only the following are considered to be acceptable forms of Identification:
a. Any Valid(non expired) US State Issued Photo Driver's License.
b. Any Valid(non- expired) US State issued Non-Driver's Photo ID.
c. A Valid(non- expired) Armed Forces ID.
d. A Valid(non- expired) Passport or Visa with Photograph.
International or Foreign driver's licenses will not be considered as either a primary or
back -up ID. if you are visiting from another country, please bring your passport or travel visa.
4) Rosemount Liquor Mart WILL NOT ACCEPT any expired ID for use as a primary or back -up ID, period.
5) You must be prepared to show your ID every time you come into Rosemount Liquor Mart, even
if you consider yourself a "regular Also, anyone who contributes money to purchase alcohol will
be carded, and must be 21 or older, no exceptions, Credit cards and checks must bear the name
of the person presenting them so that we may verify the age of the account holder.
Anyone who tries to use a fraudulent, or altered ID card to try to purchase
alcohol will be reported to the police, no exceptions!
The above policies are in effect to ensure that Rosemount Liquor Mart does not serve any
customer who is not of age. These policies are not open to negotiation. Rosemount Liquor Mart
reserves the right to refuse service to anyone to ensure complete compliance with Federal, State
and Local regulations. The above policies may change without notice due to law enforcement rule
changes. We regret any inconvenience that this causes our customers.
Rosemount Liquor Mart provides our employees with guides for determining whether an ID is valid at each
register along with a Viage Age Verification card reader.
CITY
First
Second
Third
Fourth
Apple Valley
(24 mos)
500
750
1500
7 Day
Suspension
Eagan (24 mos)
500
1000
1500 7 Days
2000 30 Days
Farmington
(24 -36 -48 mos)
250 3 Days
500 7 Days
(24)
1000 21 Days
(36)
Revocation
(48)
Hastings
300
750 2 Days
1000 5 Days
2000
Revocation
Lakeville (36)
Under Age
Best Practices
On -Sale
Intoxicating: 500
On -Sale Beer
Wine: 250
Off -Sale 3.2
Beer: $250
3 days
6 days
Revocation
Lakeville (36)
Under Age
Non Best Prac.
On -Sale
Intoxicating:
1000
On -Sale Beer
Wine: 500
Off -Sale 3.2
Beer: $500
6 days
12 days
Revocation
Inver Grove
No penalty has
ever been
imposed for
any violation
Richfield
500 2 Days
1500 5 Days
1750 —10 Days
2000
Revocation
Burnsville (24)
Under Age
Best Practices
500
750 3 Days
1000 6 Days
and removal
from BP matix
Revocation
Minimum 1
Year
Burnsville (24)
Under Age
Non Best Prac.
1000 and 3
days
1500 and 6
days
2000 and 9
days
Revocation
Minimum 1
Year
Bloomington
(60 months)
1000
1250
2000
Not Listed
Plymouth (36)
Non Best
Practices
500 and 3 days
or 5 days
1000 and 7days
or 10 days
2000 and 12 or
15 days
Revocation
Plymouth (36)
Best Practices
500
1000
Return to Non
Best Practices
Return to Non
Best Practices
Edina (24)
500
1000 and 3
days
2000 and 7
days
Revocation
Liquor License Violations Matrix May 6, 2008
Burnsville has a separate presumptive penalty matrix for all other violations than sale
to under age person. Penalties vary based upon the violation and the "look back" period
is 18 mos. after 1 30 mos. after 2nd and 48 mos. after 3ra
ORDINANCE NO. 838
CITY OF LAKEVILLE
DAKOTA, COUNTY, MINNESOTA
AN ORDINANCE AMENDING TITLE 3, CHAPTER 1
OF THE LAKEVILLE CITY CODE CONCERNING BEST PRACTICES
AND THE REVOCATIONOR SUSPENSION OF LICENSES FOR THE
SALE OF INTOXICATING LIQUOR OR 3.2 PERCENT MALT LIQUOR
THE CITY COUNCIL OF THE CITY OF LAKEVILLE, MINNESOTA ORDAINS:
SECTION 1. Section 3 1 14 4 of the Lakeville City Code is amended to read:
3 1 14 4: PRESUMPTIVE CIVIL PENALTIES:
A. Purpose: The purpose of this Section is to establish a standard by which the City
Council determines the length of license suspensions and the propriety of
revocations, and shall apply to all premises licensed under this Chapter. These
penalties are presumed to be appropriate. The Council may deviate from the
presumptive penalty where the Council finds that there exist substantial reasons
making it appropriate to deviate, such as, but not limited to, a licensee's efforts in
combination with the State or City to prevent the sale of alcohol to minors. When
deviating from these standards, the Council will provide written findings that support
the penalty selected.
B. Best Practices Program. The Best Practices Program is a program offered by the City
of Lakeville with the intent to eliminate sales of alcohol to youth. It is a voluntary
program offered to liquor establishments in the city. The program offers incentives to
the licensees to undertake certain practices believed to be helpful in avoiding sales to
minors. Establishments participating in the Best Practices Program will benefit.
Specially trained officers will provide training to participating license holders. The
officers provide a training program targeting illegal sales of alcoholic beverages to
persons under the age of 21. Participating license holders will also be given the
advantage of a different set of presumptive penalties. Those who choose to
participate in the program will have the opportunity to enroll anytime during their
licensure period and at the time of their license renewal. The licensee will indicate
in writing to the Lakeville Police Department their intent to participate. The first four
items in the grid are mandatory. The licensee must choose items from the list of
electives to equal a total of 60 points. The City will conduct random compliance
checks to verify compliance. If a licensee has two or more violations within a three
138299v03 1
RNK:r04 /29/2008
year period, the Best Practices presumptive penalties shall not apply to third and
subsequent violations.
Req.
Req.
Req.
Req.
20
10
10
10
20
10
10
10
10
2.
4.
6.
7.
8.
9.
10.
Inspection of records to verify compliance
inimum of 75% of all alcohol selling employees trained by Lakeville
Police Department
Internal program in place for on -going training of new current alcohol
..elling employees.
Policy requiring identification checks for anyone appearing to be 40 or
under
Participation in TIPS or similar (city approved) training program 75% of
Icohol serving employees certified
Internal employee reward and recognition program (program to reward any
mployee who catches any underage customer attempting to purchase
Icohol)
pproved internal compliance check program
utomated identification card scanner system (cannot do both eight and
nine)
utomated identification card scanner system integrated into register system
(cannot do both eight and nine)
Pre arrangement to meet immediately on violations (meet with Police Dept
nd City staff immediately instead of waiting for criminal court proceedings)
Policy requiring Identification checks for every alcohol transaction
regardless of apparent age
Pre agreement to work with Police on preventing secondary alcohol sales
Minimum age of 21 for employees selling alcohol products
C. Presumed penalties for Violations: The presumed penalties for violations are as
follows (unless specified, numbers below indicate consecutive days' suspension):
(1) For licensed establishment enrolled in the City's Best Practices Program at the
time of the violation:
138299v03
RNK:r04/29/2008
2
Tye 4 "0, n
1 V(0.14t n
164
3m■Violation
4!' WOAtion
1. Commission of a felony related to
the licensed activity.
Revocation
N/A
N/A
N/A
2. Sale of alcoholic beverages while
license is under suspension.
Revocation
N/A
N/A
N/A
3. Sale of alcoholic beverages to
underage person:
on sale intoxicating liquor
on sale beer and wine
off sale 3.2 beer
$500.00
$250.00
$250.00
3
3
3
6
6
6
Revocation
Revocation
Revocation
4. Sale of alcoholic beverages to
obviously intoxicated person.
3
6
18
Revocation
5. After hours sale of alcoholic
beverages.
3
6
18
Revocation
6. After hours display or
consumption of alcoholic
beverages.
2
4
12
Revocation
7. Refusal to allow government
inspectors or Police admission to
inspect premises.
5
15
Revocation
N/A
8. Illegal gambling on premises.
3
6
18
Revocation
9. Failure to take reasonable
steps to stop person from leaving
premises with alcoholic beverages.
2
4
12
Revocation
10. Sale of intoxicating liquor
where only license for 3.2 percent
malt liquor
3
6
18
Revocation
to C a.v
1A
x
x '41 4
.a
:1....4-
',..:-',...'41.
1. Commission of a felony related to
Revocation
N/A
N/A
N/A
138299v03
RNK:r04/29/2008
The penalty for violations without a presumptive penalty shall be determined by the
City Council.
(2) For licensed establishments not enrolled in the City's Best Practices Program:
3
the licensed activity.
2. Sale of alcoholic beverages while
license is under suspension.
Revocation
N/A
N/A
N/A
3. Sale of alcoholic beverages to
underage person:
on sale intoxicating liquor
on sale beer and wine
off sale 3.2 beer
$1,000
$500
$500
6
6
6
12
12
12
Revocation
Revocation
Revocation
4. Sale of alcoholic beverages to
obviously intoxicated person.
6
12
30
Revocation
5. After hours sale of alcoholic
beverages.
6
12
30
Revocation
6. After hours display or
consumption of alcoholic
beverages.
4
8
24
Revocation
7. Refusal to allow government
inspectors or Police admission to
inspect premises.
10
30
Revocation
N/A
8. Illegal gambling on premises.
6
12
30
Revocation
9. Failure to take reasonable
steps to stop person from leaving
premises with alcoholic beverages.
4
8
24
Revocation
10. Sale of intoxicating liquor
where only license for 3.2 percent
malt liquor
6
12
30
Revocation
The penalty for violations without a presumptive penalty shall be determined by the
City Council.
D. Multiple Violations: At a licensee's first appearance before the Council, the Council
must act upon all of the violations that have been alleged in the notice sent to the
licensee. The Council in that case must consider the presumptive penalty for each
violation under the first appearance column in subsection (B) above. The occurrence
of multiple violations is grounds for deviation from the presumed penalties in the
Council's discretion.
138299v03 4
RNK:r04/29/2008
E. Subsequent Violations: Violations occurring after the notice of hearing has been
mailed, but prior to the hearing, must be treated as a separate violation and dealt with
as a second appearance before the Council, unless the City Administrator and
licensee agree in writing to add the violation to the first appearance. The same
procedure applies to the second, third, or fourth appearance before the Council.
F. Subsequent Appearances: Upon a second, third, or fourth appearance before the
Council by the same licensee, the Council must impose the presumptive penalty for
the violation or violations giving rise to the subsequent appearance without regard to
the particular violation or violations that were the subject of the first or prior
appearance. However, the Council may consider the amount of time elapsed
between appearances as a basis for deviating from the presumptive penalty imposed
by this Section.
G. Computation of Violations: Multiple violations are computed by checking the time
period of the three (3) years immediately prior to the date of the most current
violation.
H. Other Penalties: Nothing in this Section shall restrict or limit the authority of the
Council to suspend up to sixty (60) days, revoke the license, impose a civil fee not to
exceed two thousand dollars ($2,000.00), to impose conditions, or take any other
action in accordance with law; provided, that the license holder has been afforded an
opportunity for a hearing in the manner provided in this Chapter.
SECTION 2. This ordinance shall be effective immediately upon its passage and
publication.
ADOPTED this 5th
City of Lakeville, Minnesota.
AYfEST:
Charlene Friedges, Cjt /Clerk
138299v03
RNK:r04/29/2008
day of May 2008, by the City Council of the
CITY OF VILLE
BY: 0/ a. G 0,
y Dahl/ ay
5