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VII.3. Emergency Ordinance Amending Chapter 4 of the Hopkins City Code Regarding Liquor License Fees; Domeier April 21, 2020 Council Report 2020-020 EMERGENCY ORDINANCE AMENDING CHAPTER 4 OF THE HOPKINS CITY CODE REGARDING LIQUOR LICENSE FEES Proposed Action Staff recommends adoption of the following motion: Move to adopt Ordinance 2020-1150 An Emergency Ordinance Amending Chapter 4 of the Hopkins City Code Regarding Liquor License Fees. Overview The renewal date for all liquor licenses is July 1, 2020. Applications for renewal of an existing license shall be made at least sixty days prior to the date of expiration. The city's liquor ordinance (Section 4-59) requires full payment at the time of application/renewal. Bars and restaurants have been affected by Governor Walz’s mandated closures. Staff wanted to develop payment options for license holders for this renewal period. The proposed ordinance allows for a two-installment approach to be utilized whenever on-sale businesses were required to close during the previous six months leading up to the license term. License holders will be required to pay half of their renewal fees at the time of renewal and the remainder by November 15. Missed payments are considered a license violation under the code that subject licensees to suspension/revocation. The payment plan applies only to on-sale licenses that are needed to continue operations. License fees for sidewalk cafés and on-sale public premise are not part of the payment plan and will be due at the time of application. . Due to the time sensitive nature of the process, City Charter Chapter 3 allows the City Council to adopt an emergency ordinance. The ordinance may be adopted after its first reading and take effect immediately after its adoption. The City Attorney has reviewed the proposed ordinance. Primary Issues to Consider  There are currently 17 businesses that would qualify to use the payment plan.  Estimated revenue is $80,350 for all on-sale licenses.  The emergency ordinance is effective immediately upon its passage. Supporting Documents  Proposed Ordinance 2020-1150 . Amy Domeier, City Clerk Financial Impact: $____________Budgeted: Y/N ____ Source: ________________ Related Documents (CIP, ERP, etc.): _______________________________________ 2 CITY OF HOPKINS COUNTY OF HENNEPIN EMERGENCY ORDINANCE NO. 2020-1150 AN EMERGENCY ORDINANCE AMENDING CHAPTER 4 OF THE HOPKINS CITY CODE REGARDING LIQUOR LICENSE FEES WHEREAS, on March 11, 2020, the World Health Organization determined that the COVID-19 outbreak constitutes a pandemic. On March 13, 2020, President Trump declared a national state of emergency as a result of the pandemic; and WHEREAS, on March 13, 2020, Governor Tim Walz issued Emergency Executive Order 20-01 declaring a state of peacetime emergency to address the COVID-19 pandemic in Minnesota; and WHEREAS, on March 16, 2020, Mayor Jason Gadd signed Mayoral Declaration No. 2020-1, which declared the existence of a local emergency in the City of Hopkins, Minnesota. On the same date, the Hopkins City Council adopted Resolution 2020-1150, which extended Mayor Gadd’s emergency declaration until further council action; and WHEREAS, since March 17, 2020, all restaurants and bars in the state of Minnesota have been unable to provide dine-in services due to the ongoing pandemic. These limitations have had a substantial impact on bars and restaurants located in the City of Hopkins that rely heavily on dine-in customers for food and beverage sales; and WHEREAS, section 3.01 of the City Charter allows the City Council to adopt an emergency ordinance if the emergency is defined in the preamble thereto and the ordinance is adopted by at least four members of the City Council; and WHEREAS, due to the imminent due date for city-issued on-sale liquor license applications, the City Council desires to adopt this emergency ordinance in order to immediately provide on-sale liquor license applicants the option to pay their annual license fee in two installments rather than requiring the entire amount to be paid at the time the application is filed with the city. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HOPKINS HEREBY ORDAINS AS FOLLOWS: SECTION 1. Section 4-59 of the Hopkins City Code is hereby amended to add the double- underlined language as follows: Sec. 4-59. - Fees. (a) The city council may establish by resolution the fees for any type of the license or permit authorized herein, including fees for amendments thereto. Fees shall not exceed any limit established by M.S.A. ch. 340A. (b) No fee shall be increased by the city without providing mailed notice of a hearing on the proposed increase to all affected licensees at least 30 days before the hearing. 3 (c) The fee for all licenses and permits, except for those that are temporary and those related to amendments, granted after the commencement of the license or permit term shall be prorated on a quarterly basis and all fees shall be paid in full at the tim e the application is filed with the city. If the application is denied, the license or permit fee shall be returned to the applicant. (d) Off-sale intoxicating liquor license applicants may request a reduction in their annual license fee by the amount specified in M.S.A. § 340A.408 if at the time of initial application or renewal they: (1) Agree to have a private vendor approved by the city train all employees within 60 days of hire and annually thereafter in laws pertaining to the sale alcohol, the rules for identification checks, and the responsibilities of establishments serving intoxicating liquors; (2) Post a policy requiring identification checks for all persons appearing to be 30 years old or less; and (3) Establish a written cash award and incentive program to award employees who catch underage drinkers and a written penalty program to punish employees in the event of a failed compliance check. (e) Notwithstanding section 4-59(c) above, an applicant for any annual, city-issued on-sale license or permit may pay the city’s established fee for such license or permit in two equal installments if during the six months immediately prior to the term for which the applicant is making application there was a duly declared state or local emergency that required on- sale establishments in the city to cease on-sale activities. The first such installment shall be paid in full at the time the application is filed with the city and the second such installment shall be paid in full on or before November 15 of the license or permit term. (f) The failure to pay any license or permit fee when it becomes due pursuant to this section shall be grounds for the denial, suspension, or revocation of a license or permit as otherwise provided in section 4-61. SECTION 2. The effective date of this emergency ordinance shall be the date of its adoption, as set forth below. Approved by the City Council of the City of Hopkins on this 21st day of April, 2020. By: ____________________________ Jason Gadd, Mayor ATTEST: ______________________________ Amy Domeier, City Clerk