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4.1. SR 11-08-1999 rei ~\) ( ); tl}{ Item # 4 . 1. River MEMORANDUM TO: Mayor & Council FROM: Sandy Peine, City Clerk DATE: November 8,1999 SUBJECT: Administrative Hearing for Liquor Violation On August 19, 1999, Daddy-a's Cafe was involved in an alcohol compliance check. During the compliance check an employee of Daddy-a's Cafe served a bottle of beer to a person under the age of21 years. . According to Minnesota Statutes, Section 340A.415, the City Council can hold a hearing to determine whether a violation of the statutes has occurred and, if so, the appropriate penalty. According to State Statute 340A.415: "On a finding that the license or permit holder has failed to comply with applicable statute, rule or ordinance relating to alcoholic beverages, the authority issuing a retail license or permit may revoke the license or permit, suspend the license for up to 60 days, impose a civil penalty of up to $2,000 for each violation, or impose any combination of these sanctions." Jeff Krueger of Daddy-a's Cafe has received notice of this hearing, and we expect that he will be present on Monday evening. The notice was hand delivered by the Chief of Police. The Police Chief will be present to review this issue with the Council. . Staff is proposing that the council levy an administrative penalty of $50 for this particular violation. These types of compliance checks have been done in the past with no penalty to the violators. This past liquor compliance check was done with state grant money and had a stipulation that an administrative hearing be held to review the matter. Staff feels it would be inappropriate to severely penalize Daddy-a's because other past violators have not been penalized. 13065 Orono Parkway. P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425 . . . City Attorney Peter Beck recommends that the city's existing liquor ordinance be amended prior to implementing sanctions for liquor violations. He indicated that the ordinance and the sanction resolution would be conflicting. Staff is proposing to amend the liquor ordinance and present a sanction resolution to the council before the end of this year. This will allow the city to notify all liquor establishments of the consequences for violating the liquor laws prior to the next liquor compliance check. ACTION REQUESTED The Chief of Police will be present to review the details of the compliance check that took place on August 19. The council is free to ask questions of Mr. Jeff Krueger. After reviewing the situation, it is the decision of the council as to what type of sanction, if any, it wishes to impose on Daddy-Os Cafe. s: \ COUNCIL \ daddyo.doc