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Home My WebLink About7. Liquor License Fees � . CITY OF ROSEMOUNT ; EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: DECEMBER 7, 1999 AGENDA ITEM: LIQUOR LICENSE FEES AGENDA SECTION: PUBLIC HEARING PREPARED BY: SUSAN M. WALSH AGEND� �� • ASSISTANT TO ADMINISTR.ATOR ATTACHMENTS : COMMITTEE OF THE WHOLE STAFF APPROVED BY: REPORT; FEE SURVEY; PUBLIC NOTICE; MEMO, ORDINANCE � At the September 15, 1999 work session meeting, the City Council discussed the feasibility of increasing various liquor license fees. Part of this discussion included review of the attached fee survey, which illustrates what surrounding communities and cities similar in size to Rosemount have for fees. The Council agreed fees should be adjusted to the average of each of the different types of liquor license fees. Therefore, notice was provided to affected license holders that the Council would consider increasing the following fees at a public hearing on December 7, 1999: Average of Cities Survey Current Fee Proposed Fee On-Sale Liquor $3731 $2,750 $4,500—Class A $3,000—Class B On-Sale Wine $ 558 $ 360 $ 550 On-Sale Beer $ 253 $ 180 $ 250 Off-Sale Beer $ 56 $ 40 $ 50 On-Sale Temp Liquor $ 51 $ 35/day $ 50/day Under the consent agenda are the on-sale liquor and wine license renewals effective January 1, 2000. The license holders were requested to submit the 19991icense fee with their renewal applications but were informed they would have to pay additional funds if the Council increased their license fees. I have also personally discussed this matter with each of the license holders. Also attached is a memorandum that outlines the costs for liquor enforcement and regulation. If the City Council deems it appropriate to increase the above license fees, the attached ordinance should be adopted. The amendment to the City Code would allow liquor and beer license fees to be set by resolution which is the document we use for approving almost all fees charged by the City. The new fees would be included in the 2000 fee resolution which will be discussed under the new business section of the December 7 Council agenda. RECOMMENDED ACTION: MOTION TO ADOPT AN ORDINANCE RELATING TO FEES FOR LICENSES FOR THE SALE OF ALCOHOLIC BEVER.AGES; AMENDING ROSEMOUNT CITY CODE SECTION 3-1-4 A � . CITY OF ROSEMOUNT . EXECUTIVE SUMMARY FOR ACTION COMMITTEE OF THE WHOLE MEETING DATE: SEPTEMBER 15, 1999 AGENDA ITEM: LIQUOR LICENSE FEES AGENDA NO.: PREPARED BY: SUSAN WALSH ASSISTANT TO ADMII�IISTR.ATOR � �� ATTACHMENTS: SURVEY, ORDINANCE APPROVED BY: In March of this year the City Council amended the liquor ordinance to include provisions for Class A and Class B on-sale intoxicating liquor licenses. At that time, Council directed staff to review the city's liquor license fees and provide information to the Council prior to the 2000 renewals. Attached is a summary of liquor license fees of cities comparable in population to Rosemount and of cities surrounding Rosemount. Size and close proximity are two useful benchmarks in assessing whether or not Rosemount's fees are appropriate. License fees should also reflect the costs of issuing and inspecting businesses and other directly related costs of enforcement, such as compliance checks. Although only intoxicating liquor licenses are up for renewal on January 1, Council may also want to review beer license fees at this time. On the attached summary I have provided the average of all the fees included in the survey. This would be a good reference point when considering if Rosemount fees need to be increased or remain the same. I have also attached a copy of the ordinance adopted in March that provides for Class A and Class B licenses. I belie�-e the Council was considering having a higher fee for the Class A (exclusive bar) license. State Statutes prohibits the City from increasing liquor license fees without holding a public hearing. The notice of the proposed increase must be mailed to affected license holders 30 days prior to the hearing. If the Council could reach a consensus on the proposed increases (if any), the public hearing could be held on October 19`h A survey for off-sale liquor license fees was not included in this report since State Statutes according to population�set this fee. The cunent fee of$150 could be increased to $200 after the 2000 eensus if Council wished.to do so. LIQUOR LICENSE FEE SURVEY—SEPTEMBER 1999 ' City On-Sale On-Sale On-Sale Off-Sale Temp Temp Liquor Wine Beer Beer Beer Liq � AppleValley $4400 - $6600 $1100 $440 $ 85 $40 $40 - - Based on Sales Avg. $5500 Burnsville $5000 $ 750 $400 $100 $50/day $50/d Eagan $4000 $ 400 $350 $ 75 $25 �150 Inver Grove Hts. $3200 $ 650 $275 $ 50 $30 $30 Lakeville $3600-$4500 $ 500 $300 $ 75 $50 nf Based on Sales Avg. $4050 Vadnais Hts. $2750-$4750 $ 300 $100 $ 20 $35 $35 Based on Sq.Ft. Avg. $3750 Stillwater $2300 $ 200 $100 $ 50 nf nf Savage $2000 $300 $250 $ 50 $20 nf Chaska $4275 $750 $300 $ 50 $10 $50/d PriorLake $5300 $1250 $200 $ 50 $25 na Lino Lakes $3000 $ 300 $200 $ 25 $ 10 na Hastings $2400 $ 200 $120 $ 40 $ 5 $ 5 Average $3731 $ 558 $253 $ 56 $27 $51 Rosemount $2750 $ 360 $180 $ 40 $30 $35/d CITY OF ROSEMOUNT NOTICE OF PUBLIC HEARING INCREASE OF LIQUOR LICENSE FEES NOTICE IS HEREBY GIVEN that the City Council of the City of Rosemount, Minnesota will hold a public hearing on Tuesday, December 7, 1999, at 8:00 p.m. or as soon thereafter as possible, in the Council Chambers of the City Hall, 2875 — 145th Street West, to consider increasing certain licenses to the amounts listed below: On-Sale Intoxicating Liquor License fees—Class A at $4,500, Class B at $3,000 On-Sale Wine License fee at $550 On-Sale 3.2%Malt Liquor License at $250 Off-Sale 3.2%Malt Liquor License at $50 Temporary Intoxicating Liquor License Fee at S50/day. Persons wishing to speak on this issue are invited to attend and be heard at this scheduled public hearing. Formal written comments will also be accepted. Please forward all written comments and/or inquiries to the City Clerk or ca11651-322-2002. Dated this 18th day of October 1999. � Susan M. Walsh, City Clerk City of Rosemount Dakota County, Minnesota MEMORANDUM DATE: December l, 1999 TO: Mayor Busho Councilmembers Cisewski,Klassen, Caspar, Edwards FROM: Susan M. Walsh, Assistant to Administrator RE: On-Sale Liquor Cost Study At the September 15, 1999 Committee of the Whole Meeting, Council agreed that the City's current liquor and beer license fees should be increased. Also at that meeting, there was discussion regarding Minnesota Statute Section 340A.408, Subd.2(a) which provides as follows: "The license fee for retail on-sale intoxicating liquor license is the fee set by the city or county issuing the license subject to the limitations imposed under this subdivision. The license fee is intended to cover the costs of issuing and inspection and other directly related costs of enforcement." City Attorney LeFevere has advised that directly related costs of enforcement include patrol to enforce state laws, nightly closing of 1:00 a.m.,no service after 1:00 a.m., underage service, sting operations,background checks for license renewals. Issuing and inspection costs include fire marshal inspections/reports,processing applications,preparing for public hearings, developing new liquor ordinances and fielding questions from the public, staff and establishment employees as they related to liquor issues. Police Chief Kalstabakken and I have determined that the daily rate for police, licenses and inspection is $15 per day per establishment or$5,475 per year(based on 365 days a year). Therefore, the proposed fees of$4500 for Class A and $3000 for Class B is actually below the city's directly related costs allowed by State law. . , STATE OF MINNESOTA CITY OF ROSEMOUNT . AN ORDINANCE RELATING TO FEES FOR LICENSES FOR THE SALE OF ALCOHOLIC BEVERAGES; AMENDING ROSEMOUNT CITY CODE SECTION 3-1-4 A THE CITY COUNCIL OF THE CITY OF ROSEMOUNT, MINNESOTA ORDAINS as follows: Section l. Rosemount city code section 3-1-4, paragraph A, subparagraphs 1-9 are deleted and replaced with the following: A. Fees: The fees for licenses and permits shall be as established from time to time by resolution of the City Council. Subd. 2. This ordinance shall be in effect the day following its publication. Adopted by the Rosemount City Council the day of December, 1999. Cathy Busho, Mayor ATTEST: Susan Walsh, City Clerk CLL-172586v1 RS215-I