HomeMy WebLinkAbout9A Fee Schedule for Liquor Licenses4646 Dakota Street SE
Prior Lake.1VIN 55372
MEETING DATE:
AGENDA #:
PREPARED BY:
PRESENTED BY:
AGENDA ITEM:
DISCUSSION:
CITY COUNCIL AGE DA REPORT
January 18, 2011
9A
Frank Boyles, City Manager
Frank Boyles, City Manager
CONSIDER APPROVAL OF THE OFFICIAL FEE SCHEDULE WITH RESPECT
TO LIQUOR LICENSES
Introduction
The purpose of this agenda item is to have the Council consider liquor license fees
for 2011. Until the City Council adopts new fees, the existing fees remain in force.
History
At its annual meeting on January 3, 2011, the City Council reviewed and approved
all aspects of the 2011 fee schedule except that portion related to liquor licenses.
The Council directed that the staff research any State limitations on such license
fees and report back to the Council with respect to any adjustments which could be
made to have them better correspond with costs of enforcement.
Current Circumstances
Minnesota Statutes Chapter 340A addresses liquor - related matters. This section
identifies what the city can do with respect to liquor licensing and fees. I have iden-
tified where the Statute does not specify limits or expressly indicates that the li-
censing authority may establish the fee.
Shown in the table below is each of the City's liquor licenses, the related fees, limi-
tations on fees and number of licenses presently issued by type:
Type of
Description
Fee
Fee
State Fee Limits
2011 Fee
Proposed
Present
# of
License
Licenses
MS340A, 414, subd.
Con-
1 -3.
sump-
Permits the estab-
MS340A, 414, subd.
tion and
lishment to permit
6
$250
Display
consumption and
display of intoxicating
$100
Not to exceed $250
300
0
Permit
liquor on premises,
and the City or
County may add up
$550
(aka
but not off -sale. This
to $300.
set -up
permit is issued by
license)
the Commissioner
with Cit consent.
MS340A.408.subd.3
$380
Off Sale
Liquor stores. Sold
(3).
$28
by
Intox-
bottle or can for
$150
Cities of over 10,000
for vendor
6
icating
g
onsumption off pre-
population in metro
training and
mises
area sets max of
policy on
$380.
I.D. cardin
MS340A.404
MS340A, 408, subd.
On Sale
Provides for sale of
2.
The license fee for
Intox-
liquor, beer or wine
$6,300
retail on -sale intox-
$6,300
8
icating
for consumption on
icating liquor license
premises.
is set b the Cit .
MS340A,504
MS340A,504,subd.3
Authorizes serving of
(b) establishes a
maximum fee of
Sunday
intoxicating liquor on
$200
$200. This is typi-
$200
9
sale on Sundays
cally purchased with
within prescribed
an on -sale intoxicat-
hours
ing license.
Conclusion
The Council should determine if it wishes to adjust any of the fees that are within
the City's control.
ISSUES: State Statute is very specific about the process to be used for increasing fees. The
Statute provides both that notice be given and a public hearing conducted. The
notice must be mailed to all affected licensees at least 30 days before the hearing
date.
The fees the City charges have not been changed for many years. Although the
on sale intoxicating liquor license was increased over a three -year period with the
final adjustment in 2010. Other licenses have not been adjusted for a considerably
longer period of time. The fees that can be changed by the City include: Con-
sumption and Display Permit (no current license holders), Off Sale Intoxicating Liq-
uor License (six license holders), On Sale Liquor Licenses (eight license holders),
and all 3.2 Malt Liquor Licenses (three license holders).
If the Council desires to amend the license fees, an option could be to conduct the
public hearing and make the increases effective for the license period beginning
July 1, 2011. On the other hand, license increases could be stepped in over mul-
tiple license periods to make them somewhat less impactful.
Present
Type of
Description
2010
Fee State Fee Limits
2011 Fee
proposed
# of
License
Licenses
MS340A,404,subd.5
(a)
Provides for the on-
sale consumption of
wine up to 14% alco-
MS340A,408,subd.2
hol for the same
(c)
hours allowed for on-
The license fee for
On Sale
sale liquor for a res-
the issuance of a
taurant having facili-
$1,250 wine license may
$2,000
1
Wine
ties seating at least
not exceed ' /z the
25 guests. (b) City
fee for an intoxicat-
may allow the holder
ing on sale license
of wine license to
or $2,000
also sell intoxicating
malt liquors if they
secure an on sale 3.2
malt liquor license.
Conclusion
The Council should determine if it wishes to adjust any of the fees that are within
the City's control.
ISSUES: State Statute is very specific about the process to be used for increasing fees. The
Statute provides both that notice be given and a public hearing conducted. The
notice must be mailed to all affected licensees at least 30 days before the hearing
date.
The fees the City charges have not been changed for many years. Although the
on sale intoxicating liquor license was increased over a three -year period with the
final adjustment in 2010. Other licenses have not been adjusted for a considerably
longer period of time. The fees that can be changed by the City include: Con-
sumption and Display Permit (no current license holders), Off Sale Intoxicating Liq-
uor License (six license holders), On Sale Liquor Licenses (eight license holders),
and all 3.2 Malt Liquor Licenses (three license holders).
If the Council desires to amend the license fees, an option could be to conduct the
public hearing and make the increases effective for the license period beginning
July 1, 2011. On the other hand, license increases could be stepped in over mul-
tiple license periods to make them somewhat less impactful.
FINANCIAL License fee increases can help to defray the cost of City associated with liquor li-
IMPACT: censes whether through processing and monitoring the license throughout the
year, traffic stops, monitoring liquor establishments or conducting sales checks.
ALTERNATIVES: 1. Direct the staff to schedule and provide notice of a hearing to consider increas-
es in certain liquor license fees.
2. Take no action to modify fees.
RECOMMENDED Alternative #1.
MOTION: