HomeMy WebLinkAbout12A - Liquor Compliance ChecksO~ PRI~~`Y
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CITY COUNCIL AGENDA REPORT
MEETING DATE: February 16, 2010
AGENDA #: 12A
PREPARED BY: Frank Boyles, City Manager
AGENDA ITEM: CONSIDER APPROVAL OF A REPORT REGARDING LIQUOR COMPLIANCE
CHECKS
DISCUSSION: Introduction
The purpose of this agenda item is to request a council determination regarding
the number of compliance checks the City should be undertaking for each liquor
licensee.
Histo
Minnesota Statutes Chapter 340A sets forth the terms, licensing, consumption,
sales, hours of sale and all other matters pertaining to the retail sale, distribution
and consumption of liquor and malt Liquor products. Under the terms of the
statutes, cities may be more restrictive.
Prior Lake City Code Section 301.2100 "Compliance Checks" provides in part
that, "...from time to time, but at least once per year, the City shall conduct
compliance checks. Such compliance checks may involve, but are not limited to,
engaging minors to enter the Licensed premises to attempt to purchase alcohol
and alcohol related products. ... no-minor used in compliance checks shall
attempt to use a false identification misrepresenting the minors age and all
minors lawfully engaged in a compliance check shall answer all questions about
the minors age asked by the licensee or his/her employee and shall produce any
identification for which he or she is asked."
Current Circumstances
For the last few years we have conducted two compliance checks of each on-
and off-sale establishment annually. There are 17 such licenses presently
issued. Compliance checks are sometimes conducted for temporary licenses as
was the case with PLABA and the Chamber.
fn addition to the compliance checks the City has enacted an ordinance which
provides for criminal penalties for the person who violated the liquor laws and
civil penalties for the owner. The civil .penalties are progressive and result in
license revocation if the vendor has three violations within a 36-month period.
At a recent meeting the Council asked the staff to report on whether additional
compliance checks would further our efforts.
ISSUES: Drug use and abuse has been one of the top issues, identified by our Community
Safety Task Force together with initiatives aimed at reducing underage
consumption of alcohol, such as the Social Host Ordinance. Prior Lake has
been a leader in attempting to control alcohol procurement, possession and use
www. cityofpriorlake. com
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by minors, which includes the DARE program in our local schools. Compliance
checks are one part of our efforts to avoid sales to minors.
The compliance checks themselves serve two purposes: enforcement and
education. Studies have shown that in communities where there is little or no
enforcement, individuals who are minors or who do not look 21 can buy alcohol
without showing identification in 45 - 50 % of the attempted purchases. By
contrast, two studies (from the 1990s) found that after compliance checks were
conducted, sales to underage patrons dropped from 60 - 80% to 25 - 30%. In
Concord, New Hampshire, sales to youth decreased from 28% to 10% after
quarterly compliance checks. In Minnesota, sales to youth were reduced
immediately by 17% in establishments that were checked. A national survey
shows that 66% of adults favor such checks.
It is clear that compliance checks work. What is not clear is the optimum number
of checks per year that should be made. The Scott County Sheriff's office and
each of the cities of Savage, Shakopee, and Jordan report doing two compliance
checks at each licensed premise. The City of New Prague is currently doing one
check at each licensed establishment.
In Dakota County in 2008, seven communities checked each establishment once
a year, three communities twice a year with one checking three times and
another zero.
The Council has asked how many compliance checks are appropriate yearly.
According to the U of MN Alcohol Epidemiology Program, "compliance checks
should be done frequently and on an unscheduled basis. Cities that conduct at
least two (2) compliance checks per year for over two years report illegal alcohol
purchase rates under 20%." Compliance checks should be done for all license
holders and not just a sample.
There are other implications that must be considered as well. The first of which
is determining if the Police Department can perform additional compliance
checks in the reality of mandatory furloughs and currently having one officer less
than the authorized complement.
A second consideration is how such increased checks would be viewed by the
license holders or anyone considering locating an alcohol-related business in
Prior Lake as "over the top" compared with most other cities.
The Community Safety Advisory Committee was asked for their recommendation
regarding increased compliance checks and it recommends that we focus on a
broad-based approach to underage access to alcohol rather than focusing too
much on a single enforcement tool such as compliance checks. Both the Police
Department and the Community Safety Advisory Committee agree that the
present number of checks is appropriate and is .complementary to our multi-
faceted efforts to obtain voluntary compliance from alcohol licensees to reduce
alcohol sales to underage youth.
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FINANCIAL The Police Department could increase the number of inspections per year from
IMPACT: two to four. The additional cost would be about $2,000 or $120 per license. The
more significant constraint to this proposal is establishing the necessary time to
get the work scheduled and done.
ALTERNATIVES: 1. Direct that the Police Department begin conducting four unscheduled liquor
license compliance checks beginning in 2011 and prepare the analysis for
funding such action.
2. Direct that the Police Department begin conducting three unscheduled liquor
license compliance checks beginning in 2011 and prepare the analysis for
funding such action.
3. Take no action and leave the compliance checks and fees as they are.
RECOMMENDED Alternative #3.
MOTION:
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