PUBLIC HEARING - Cathy Sorensen, City Clerk
Title
PUBLIC HEARING REGARDING ADMINISTERING LICENSE PENALTY(S) PER CHAPTER 6 - ALCOHOLIC BEVERAGES, BLAINE LIQUOR, 3453 LAKE DRIVE NE SUITE 140
Background
On May 14, 2016, the Police Department conducted one of their two annual compliance checks as outlined in City Code and three liquor license holders failed, one of which was Blaine Liquor. All three license holders have signed their stipulations acknowledging the compliance failures and are in the process of complying with their required penalties, however, Chad Moe, license holder for Blaine Liquor, has requested a hearing to discuss his penalty phase, which is allowed by Code.
Annual license renewals were scheduled for consideration at the June 16 Council meeting but due to the hearing request Council voted to extend Blaine Liquor’s current license period until after the public hearing could be held. After the public hearing and issuance of any penalty(s) Council is asked to act on the Blaine Liquor 2016-2017 license renewal.
Blaine Liquor has failed four alcohol compliance checks since the new ordinance went into effect: 8/30/2012, 4/25/2015, 12/18/2015, and 5/14/2016. In addition, Blaine Liquor has failed two tobacco compliance failures: 11/1/2014 and 1/5/2015. After each compliance failure staff contacted Mr. Moe regarding the outlined penalties and after the two recent failures the Police Department had discussions with Mr. Moe on the importance of obtaining identification and the consequences of selling to minors. Staff also sent a notice to all liquor license holders in June of 2015 after a high compliance failure rate occurred.
Upon reviewing the original license application from 2011, the initial background investigation for license consideration had revealed three compliance incidents at Mr. Moe’s other off-sale license location in Hudson, Wisconsin:
• 9/25/2008 (tobacco compliance failure)
• 3/21/2009 (alcohol compliance failure)
• 9/18/2010 (alcohol compliance failure - warning)
While discussions with the City of Hudson Police Department indicated no real concerns with compliance issues at Hudson Liquor none of these incidents were disclosed in Mr. Moe’s original application, which is a requirement of the application.
Per City Code after a third violation within any two-year period, a mandatory ten-consecutive-day suspension shall be issued. The City Council can select the days during which the license will be suspended, but historically suspension days have been selected upon discussions between the Police Chief and license holder. In addition, Sec. 6-53 outlines the possibility of civil penalties which could include up to $2,000 in fines. These are the minimum penalties allowed.
Mr. Moe has shared the possibility of selling Blaine Liquor to a new limited liability company but has indicated that two of the three existing partners will be part of the new company. At Mr. Moe’s request staff reviewed the Code and is of the opinion that since the current partners will still be involved in the new corporation that any subsequent compliance failure could be considered a fourth violation within a two-year period and subject to license revocation at Council's discretion.
Recommendation
Conduct the public hearing and, by motion,
(1) administer the mandatory ten-consecutive-day suspension as outlined in Code; and
(2) consider 2016-2017 off-sale intoxicating liquor license renewal.