CR 98-43 Liquor License Violations - MT BearsMarch 11, 1998
Proposed Action
Staff recommends adoption of the following motion: Move to approve Conditional Admission
and Waiver of Hearing for Stone Creek Inc.. dba MT Bears. located at 502 North Blake Road.
Adoption of this motion will result in the City Council imposing a $500 fine and a two day liquor
license suspension effective March 22 and 23, 1998 for violations of state and municipal liquor
license laws.
Overview
LIQUOR LICENSE VIOLATIONS —MT BEARS
On October 10, 1997, the Hopkins Police Department found employees of MT Bears consuming
alcohol after operating hours. Employees were charged and pled guilty to those charges.
During liquor license renewal processes, it was found that corporate ownership of Stone Creek
Inc., dba MT Bears, changed hands in an amount which required notification of the city for
licensing purposes. Notification was to be made within ten days. That notification was not
made.
In accordance with Resolution 89 -11, the City Manager has determined that violations did
occur, and has negotiated a proposed a Conditional Admission and Waiver of Hearing
agreement for Council consideration.
While the Resolution is not specific to these violations, it is the City Manager's opinion that the
proposed penalties are within the guidelines adopted by the Council as policy in Resolution in
89 -11.
Primary Issues to Consider
• What guidance is suggested by Resolution 89 -11?
• Have there been subsequent violations since the October violations?
Supporting Documents
• 'Conditional Admission and Waiver of Hearing
• Resolution 89 -11
Steven C. Mielke
City Manager
Council Report 98 -043
Council Report 98 -043
Page 2
Staff Analysis of Issues
The following are the primary issues to consider for this item.
• What guidance is suggested by Resolution 89 -11?
First violations for after hours sale of alcoholic beverages is recommended at zero to two
consecutive days suspension. While in this case the violation is consumption after hours, it
seems consistent with the proposed presumptive penalty.
There is no presumptive penalty for a failure to notify the city of a change in corporate
ownership as required by Minnesota statutes, and this seems more a technical violation of
law, in previous cases a monetary fine has been considered adequate for these types of
violations. Staff is recommending a $500.00 fine.
• Have there been any subsequent violations since the October violations?
The police have continued to monitor the activities at MT Bears, and have filed no additional
charges or allegations against MT Bears since the October violations.
Police Department and the owners of MT Bears have held discussions about appropriate
procedures and activities within MT Bears. Hopefully there will be no subsequent issues to
deal with.
North Blake Road, Hopkins, Minnesota.
City of Hopkins
Conditional Admission and Waiver of Hearing
The undersigned is the licensee of record for Stone Creek Inc., dba M.T. Bears, located at 502
The undersigned hereby acknowledges that on October 10, 1997, employees of M.T. Bears were
consuming alcohol after hours, in violation of Hopkins City Code Chapter 1200.27.
The undersigned additionally acknowledges that notification of a change in corporate ownership
was not provided within ten (10) days, in violation of Minnesota Statute 340A.412 subd.9.
The undersigned recognizes that under Minnesota Statutes §340A.415, the Hopkins City Council
has the authority to suspend or revoke a liquor license or impose a civil fine of up to $2,000 for
the violation noted above. Before such sanctions can be imposed, however, the licensee is
entitled to notice and a hearing at which the licensee can present evidence and argument and
cross - examine witnesses. Following the hearing, a written decision must be rendered on the
hearing record alone. The licensee hereby waives the right to such a hearing procedure.
This admission and waiver is conditioned upon the Hopkins City Council imposing
a fine of $500 and a two day liquor license suspension, effective March 22 and 23, 1998, for the
violations noted above. The licensee understands that this agreement will be presented to the
Hopkins City Council for approval. If the Council does not agree to impose the stated penalty,
this agreement is null and void and the licensee is free to contest the violation at the hearing
described above.
The licensee has read and understands this agreement and has consulted with counsel or, if not,
has been given the opportunity and chose not to do so.
Linda Kay Harshe James Robert Harsche
President Vice President
Date Date
Thomas Todd Alexander
Treasurer
Date
This agreement will be presented to the Hopkins City with the recommendation that it be
approved.
mtbears
City Manager
Date
CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION #89 -11
RESOLUTION AMENDING RESOLUTION #87 -41
ADOPTING GENERAL POLICIES
REGARDING LIQUOR LICENSE ISSUES
WHEREAS, the City Council of the City of Hopkins desires to estab-
lish certain procedures for dealing with liquor license
violations, and
WHEREAS, the Council has directed certain general policies be adopted
and certain actions be acknowledged, then
NOW THEREFORE BE IT RESOLVED, that the Hopkins City Council hereby
states the following with regard to liquor license issues,
In the event of any reports by the Hopkins Police Department of vio-
lations of the laws of the State of Minnesota or the ordinances of the
City of Hopkins relating to alcoholic beverages, the administration is
directed to take the following action:
1. Notify the Council of the report.
2. Monitor the Criminal case resulting from the report.
3. If the criminal case is dismissed or results in an acquittal or
if the administration otherwise finds the evidence of the viola-
tion unreliable, the Council shall be so informed. The Council,
at that time, shall decide whether to dismiss the matter or
proceed.
•
4. If the criminal case results in a conviction or payment of the
court cost or if the administration otherwise finds the evidence
reliable, the City Manager shall meet with the licensee and invite
the. licensee to sign a conditional admission and waiver of hearing
that includes a proposed sanction.
5. If the conditional admission is signed, it shall be presented to
the Council for approval or other action.
6. If the conditional admission is not signed, the licensee shall be
provided notice of a suspension /revocation hearing and the matter
shall be set down on the Council agenda for hearing.
7. The hearing will be in accord with the Administrative Procedure
Act. Minn. Stat. 14.57 to 14.70. The hearing shall be recorded,
the the City Manager shall present the evidence establishing
lation, and the licensee shall have the right to cross - examine
witnesses, present evidence, and make a statement to the Council.
The council will issue written findings on whether a violation
Be it further included in this resolution that the following list of
presumptive penalties be assessed as deemed necessary.
Presumptive Penalties for Violations
Adverse penalties
follows:
Type of Violation
1. Commission of a
felony related to
the licensed
activity.
2. Sale of alcoholic
beverages while
license is under
suspension.
3. Sale of alcoholic
beverages to under
age person.
4. Sale of alcoholic
beverage to intox-
icated person.
5. After hours sale
of alcoholic
beverages.
6. Illegal gambling
on premises.
7. Permit person to
leave premises
with alcoholic
beverage.
8. Violations of City
Ordinances per-
taining to fire or
building or health
codes.
for convictions or
1st Violation
10 -25 consec.
days of susp.
10 -25 consec.
days of susp.
0 -5 Consecutive
Days Suspension
0 -5 Consecutive
Days Suspension
0 -2 Consecutive
Days Suspension
0 -3 Consecutive
Days Suspension
0 -2 Consecutive
Days Suspension
0 -5 Consecutive
Days Suspension
violations shall be
and Violation
Revocation
Revocation
6 -15 Consecutive Revocation
days Suspension
6 -15 Consecutive
Days Suspension
3 -9 Consecutive
Days Suspension
4 -9 Consecutive
Days Suspension
3 -5 Consecutive
Days Suspension
6 -15 Consecutive
Days Suspension
presumed as
3rd Violation
NA
NA
16 consec.
days of
susp.to
Revocation
10 consec.
days of
susp. to
Revocation
10 consec.
days of
susp. to
Revocation
6 -10 cons.
days of
susp. to
Revocation
16 consec.
days of
susp. to
Revocation
Computation of time. For the purpose of determining the number of
occurrences of violations, the council shall consider a violation as a
second occurrence if it occurred within 18 calendar months of the
second occurrence if it occurred within 18 calendar months of the
first violation; and shall consider a violation as a third occurrence
if it occurred within 30 calendar months of the second violation.
Other penalties. Nothing in this section shall restrict or limit the
authority of the council to suspend up to 60 days, revoke the license,
assess a civil fine not to exceed $2,000, to impose conditions or take
any adverse action in accordance with law, provided that the license
holder has been afforded an opportunity for a hearing in the manner
provided for in Section 310.05 of this Code.
It is the intent of this Resolution to inform the public and business
community in the City of Hopkins that henceforth all criminal viola-
tions of liquor laws and ordinances will result in automatic admin-
istrative action. Nothing in this Resolution concerning the adminis-
trative procedures that will be followed in the event of criminal
violations of liquor laws and ordinances shall detract from the
Council's authority to impose sanctions for violations of other crim-
inal laws occurring on the premises of licensees or for complaints of
non - criminal conduct.
Adopted by the City Council of the City of Hopkins on this seventh
day of February , 1989.
(
Donald J. Hilbert, Mayor '
81688
Genel ie, City Clerk