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02-9204r I I I 26 RESOLUTION NO. 9204 RESOLUTION SPECIFYING CERTAIN IMPROPER CONDUCT OF ON-SALE INTOXICATING LIQUOR, WINE AND 3.2 MALT LIQUOR LICENSEES AND STATING RECOMMENDED DISCIPLINE AND RESCINDING RESOLUTION NO. 8808. WHEREAS, at their June 25,2002 Council meeting, City Council directed staff to update the City's current alcohol discipline document. This, therefore, is a new Resolution that specifies the discipline an alcohol establishment can expect for the types of violations listed and rescinds Resolution No. 8808; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield as follows: I. BACKGROUND STATEMENT The City of Richfield annually issues a number of licenses permitting the sale of on- sale intoxicating liquor, wine and 3.2 malt liquor within the City. The conduct of the licensed activity is governed by the provisions of Section 1200 of the City Code. Although the provisions of that Section describe in a general way what is expected of licensees in the proper conduct of the licensed activity, the City Council is concerned that licensees should have a more specific understanding of the types of conduct, generally described in the Code, which may subject their licenses to discipline; and further that they have a clear understanding of the scope and nature of the discipline which may be imposed for certain specific conduct. The levels of discipline described in this resolution will be imposed only in accordance with the applicable provisions of law. The list of activities and conduct contained in this resolution is not intended to be exhaustive, but rather concentrates on the types of conduct most frequently observed at licensed establishments. Other activity or conduct which is detrimental to the public safety, health, morals and welfare and which constitutes a violation of the provisions of Section 1200 of the City Code may also subject liquor licenses to discipline. The actions which the City may take in accordance with this resolution are not intended to preclude such further actions such as actions in law or in equity or criminal prosecution available to the City for the conduct described in this resolution. II. SPECIFIC PROHIBITED CONDUCT AND PROPOSED SANCTIONS. A. Noise and Other Disturbing Conduct Within or Near the Licensed Premises. Licensees are responsible for the conduct of their patrons while within the licensed establishment; and of individuals within the immediate vicinity of the establishment whom are either coming to or leaving the establishment. The City is unwilling to permit the continued operation of a licensed alcohol establishment in circumstances where it is evident that the licensed activity is having a detrimental impact upon the health, welfare, safety and morals of the community and patrons of the establishment. The following discipline may be imposed upon on-sale intoxicating liquor, wine and 3.2 malt liquor licenses for verified reports of criminal misconduct occurring on or near the licensed premises and attributable to patrons of the establishment (including persons entering or leaving): 1) For five (5) such incidents occurring within less than a 31-day period (beginning with the date of the first of such five incidents) - suspension of the license for up I to 10 days and a civil fine of $2,000 for each incident. 2) For ten (10) such incidents occurring within less than a 61-day period (beginning with the date of the first of such incidents) - suspension of the license for up to 30 days and a civil fine of $2,000 for each incident. 3) For fifteen (15) such incidents occurring within any 91-day period (beginning with the date of the first of such incidents) - suspension of the license for up to 60 days and a civil fine of $2,000 for each incident. The discipline outlined above is intended to be cumulative in nature, and incidents which give rise to discipline (or the right to discipline) during a shorter period may be counted in determining whether discipline is appropriate during a longer period. The term "verified reports of criminal misconduct" means a report made to the Director of Public Safety by the licensee or a complaint made by others concerning an incident constituting a crime under the City Code of the laws of the State of Minnesota, which, in the opinion of the Director, is directly attributable to the licensed activity. Verified reports of criminal misconduct do not of necessity mean requests for service, and licensees shall not be required to make requests for services in situations where the licensee is capable of resolving the incident without police assistance. However, it is necessary for the City to have an accurate measure of the level of criminal I misconduct. The Department of Public Safety shall establish standards and criteria for the making of such reports by the licensee. If the licensee fails to make the required reports of criminal misconduct in accordance with such standards and criteria, the following additional discipline may be imposed upon its on-sale intoxicating liquor, wine or 3.2 malt liquor license: 1) For the first incident of failure to report criminal misconduct within any license year - suspension of license for up to five days and a civil fine of $2,000. 2) For the second such incident in any license year - suspension of license for up to 10 days and a civil fine of $2,000. 3) For the third such incident in any license year - suspension of license for up to 15 days and a civil fine of $2,000. B. Serving Alcoholic Beverages Beyond the Interior of the Licensed Premises or Permitting Patrons to Leave such Licensed Premises with Alcoholic Beverages. Licensees must assure that the service and consumption of alcoholic beverages will be confined only to those areas permitted by the license. Failure to do so may have an evident and adverse impact upon other activities lawfully occurring within the area and creates a substantial risk of criminal behavior such as violation of the Open Bottle Law. The following discipline may be imposed upon on-sale intoxicating liquor, wine and 3.2 malt liquor licenses: I 1) The first incident during the license year- up to a 10-day suspension and $2,000 civil fine. I I I 2) The second incident during the license year -- up to a 30-day suspension and $2,000 civil fine. 3) The third incident during the license year - up to a 60-day suspension and $2,000 civil fine. 4) The fourth incident during the license year - revocation of license. C. Permitting Occupancy to Exceed the Limits Permitted Under the Uniform Fire Code 25.114 (overcrowding) Licensees are absolutely bound to prevent situations in which the licensed premises become overcrowded. The City finds that the opportunity to serve alcoholic beverages contributes to an environment wherein overcrowding, if not strictly controlled by the licensee, may occur. Each liquor license issued shall state the maximum occupancy limit for the licensed premises. The following discipline may be imposed upon on-sale intoxicating liquor, wine or 3.2 malt liquor licenses for incidents of overcrowding verified by the City's Public Safety Director or their designee: 1) The first incident during the license year - up to a 10-day license suspension and $2,000 civil fine. 2) The second incident during the license year - up to a 30-day suspension and $2,000 civil fine. 3) The third incident during the license year - up to a 60-day suspension and $2,000 civil fine. 4) The fourth or subsequent incident during the license year - revocation of the license. D. Facilitating Gambling. Licensees must not permit or allow any condition to occur on the licensed premises, which would facilitate gambling activity. Licensees may not permit any device on the licensed premises, which could be used, for gambling. Such devices include blackjack tables, video games of chance, roulette wheels and any other amusement or gambling device as defined in Minnesota Statutes, Chapters 349 and 609, and Richfield City code Subsections 1100.13 and 1100.01. For any incident of facilitation of gambling, the on-sale intoxicating liquor, wine or 3.2 malt liquor license may be suspended for up to a period of days equal in number to the period of days that such incident continued. E. Effect of Suspension or Revocation of Food License. On-sale intoxicating liquor, wine or 3.2 malt liquor licenses which are issued to establishments because they qualify as restaurants shall cease to be valid for any period of time during which the establishment's food license is under suspension or revocation as the result of actions taken by the City Manager, enforcement officer or both pursuant to Subsection 615.05, subdivision 6 of the City Code. The on-sale sale of intoxicating liquor, wine or 3.2 malt liquor during such period shall constitute an unlicensed sale. F. The Sale, Consumption or Service to a Minor of Intoxicating Liquor, Wine or 3.2 Malt Liquor. Licensees must assure that the sale, consumption or service to a minor of any alcoholic beverage is prohibited under any condition. Failure to do so will result in swift and severe progressive civil penalties. The following discipline will be imposed upon on- sale intoxicating, wine or 3.2 malt liquor licenses for verified reports or compliance checks of misconduct occurring at the establishment: I 1) For a first offense, the establishment's license will be suspended for (five) Q days and a civil fine of $1000 will be due and payable to the City. 2) For a second offense, (if within one <'1} year of the first offense), the establishment's license will be suspended for seven (Zl days and a civil fine of $1750 will be due and payable to the City. If the offense occurs outside of one (1) year of a first offense, it will be considered a first offense. 3) For a third offense, (if within ~years of the second offense), the establishment's license will be suspended for 12 days and a civil fine of $2000 will be due and payable to the City. If the offense occurs outside of two years of a second offense, it will be considered a second offense. 4) For a fourth offense, (if within ~years of the third offense), the establishment's license will be brouaht before the City Council for a *revocation hearing and a civil fine of $2000 will be due and payable to the City. If the offense occurs outside of two years of a third offense, it will be considered a third offense. 5) For a fifth offense. (if within 2 years of the fourth offense. the establishment's license will be revoked for the remainder of the license year and a civil fine of $2.000 will be due and payable to the City. An establishment whose license is revoked is ineliaible for a license for a period of five (5) years from the date of revocation. I . A revocation hearing at the fourth offense level would result in a hearing before the City Council to discuss whether there are alternatives available that can be agreed upon by Council and the owner of the establishment to prevent the need to revoke the establishment's license. Alternatives will be determined on a case-by-case basis. If no alternatives exist. the license would be revoked. If feasible alternatives exist. conditions will be placed on the licensee by the City Council. A fine will be assessed in either instance. An establishment whose license is revoked is ineliaible for a license for a period of five (5) years from the date of revocation. Step Back Option - It is possible to "step back" a failure level if an establishment has successfully passed a minimum of two consecutive compliance checks. For example. if an establishment is at the third offense level but has successfully passed two consecutive compliance checks since the last failure. they are eliaible to "step back" to a second offense level. This provides a serious incentive to establishments to work on keeping their record clean so that they can "step back" in the discipline arid. If an establishment passes two consecutive compliance checks. they step back one offense level. It is. however. possible that if an establishment has several failures but continues to pass compliance checks time after time for several years. they may eventually "step back" to the step one startina point. I I I I G. General provisions regardiogsanctions. In addition to the sanctions listed for specific offenses listed in paragraphs A through F above, the City Council may impose other mandatory requirements upon the establishment such as: meetings with the Public Safety Director to present a plan of action to assure that the problem will not continue; mandatory educational sessions with Crime Prevention staff; or other actions that the City Council deems appropriate. The City Council retains the right to modify the provisions of this resolution from time to time and to impose penalties greater than or less than those contained herein when inJhe judgment of the Council it is appropriate to do so. The City Council may suspend all or a portion of any penalty or license suspension upon compliance with such conditions as the Council deems appropriate. Prior to imposing any monetary penalty or license suspension or revocation, the City Council will set an initial appearance at which the licensed establishment must appear before the City Council to admit or deny the violation. If the violation is admitted, the licensed establishment will be allowed to explain any mitigating circumstances at the time of the initial appearance. If the violation is denied, the licensed establishment may request a hearing at or prior to the initial appearance. Licensed establishments may explain mitigating circumstances or request a hearing in writing prior to the initial appearance or may do so orally by appearing at the initial appearance. The City Council strongly encourages licensed establishments to make a personal appearance at the initial appearance. A licensed establishment that does not request a hearing at or prior to the initial appearance will be deemed to have waived its right to a hearing, and the City Council may deem the violation admitted and impose sanctions as provided in this resolution. Where a hearing is requested, the City Council may conduct the hearing or refer the hearing to an independent hearing examiner. All hearings involving possible suspension or revocation of a license will be conducted in accordance with Minnesota Statutes, Chapter 14. Passed by the City Council of the City of Richfield this 9th day of July 2002. ~~u Martin J. Ir , ayor ATTEST: Q~~A' Deborah Guiher, Deputy City Clerk