CR 94-170 Liquor Licence Violation - East End Bottle House
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September 1, 1994 ~ Council Report 94-170
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LIQUOR LICENSE VIOLATION -
EAST END BOTTLE HOUSE
Proposed Action
Staff recommends adoption of the following motion: Move that the Conditional Admission and
Waiver of Hearino Aqreement between the City ManaO'er and the Licensees of the East End
Bottle House be accepted and that the Licensees be fined $700 as a penalty for a liquor li-
cense violation on Februarv 4, 1994.
The effect of this motion will be to find the East End Bottle House in violation of the liquor laws
of Hopkins and to levy a fine of $700 for that violation.
Overview
Through a Police Department violation investigation, charges were brought against Kevin
Johnson and Charles Daisy, as owners of East End Bottle House for violation of state and lo-
cal liquor laws dIrected towards the sale of alcoholic beverages to underage individuals.
The sale of alcoholic beverages to underage individuals is subject to criminal prosecution un-
der state law and civil prosecution under the liquor laws of Hopkins. In 1989, the City Council
passed a resolution providing for a process upon which to deal with liquor law violations, A
. copy of that resolution is attached, The resolution calls for the City Manager to negotiate and
attempt to come to agreement with the license holder on a penalty for the violation of the Hop-
kins liquor laws after the criminal prosecution has completed. Presumptive penalties for viola-
tions have also been established.
The City Manager, with the assistance of the City Attorney and the Police Chief have reviewed
the relative nature of this case and are recommending a monetary penalty of $700. The li-
cense holders have agreed to this penalty and have signed a Conditional Admission and
Waiver of Hearing, Staff is recommending Its adoption by the City Council.
Primary Issues to Consider
0 What is the City's policy regarding liquor license violations?
0 What alternatives does the City Council have?
0 Is the penalty reasonable?
Supportinq Information
0 Conditional Admission and Waiver of Hearing
0 Council Policy on liquor violations
0 Memorandum - Wynn Curtiss, City Attorney Re: East End Bottle Plea Agreement
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. Steven C. Mielke
City Manager
Page 2
Primary Issues to Consider
. 0 What is the City's policy regarding liquor license violations?
The City has prescribed a procedure for dealing with liquor license violations
(Resolution 89-11). Following completion of the criminal prosecution, the policy calls
for the City Manager to discuss with the applicant the potential of reaching agreement
on a Conditional Admission and a Waiver of Hearing to which they are entitled before
the Council.
0 What alternatives does the City Council have?
Under the City policy and state law, the City Council is not required to follow the agree-
ment reached between the City Manager and the licensee. However, if this is the case,
the license holder must then be afforded the opportunity for a hearing. In addition, if
the Council desires a different penalty they must also provide the license holder with an
opportunity to consider the options and present facts at a public hearing,
0 Is the penalty reasonable
The City Council has established presumptive penalties for violations. The sale of al-
coholic beverages to underage persons on a first violation is recommended at zero to
five consecutive days suspension. The resolution also allows the Council to assess a
. civil fine not to exceed $2,000. In the past, most first time violations of this type have
been resolved through either zero to three days of suspension of the license. In this
case, an agreement was reached to assess a civil fine of $700 in lieu of the suspension
of the license.
In the opinion of the City Manager, Police Chief and City Attorney, the circumstances
surrounding this case indicate that while a violation occurred, it was not blatant or in-
tentional by the license holders or the employee who sold the beverages, to violate the
law, Thus the penalty proposed is below the maximum allowed under the presumptive
penalties provisions,
As a bit of background, the individual arrested for the purchase of the alcoholic bever-
age had frequented this establishment in the past and had shown an identification
which, while false, had been checked by the store employee in the past. On this par-
ticular evening, the employee did not check the i.d. but claimed to have known this cus-
tomer from past transactions wherein the i.d, had been checked. The individual who
purchased the beverages also stated that he had been "carded" at prior purchases.
It should also be noted that the current license holders have placed the business up for
sale, claiming in part that the actions taken against them as part of this procedure was
a reason for their placing the business up for sale. They have also indicated that they
. have signed a purchase agreement with a buyer which, if fulfilled, will cause the East
End Bottle House to be sold to a new owner, on or about November 1, 1994.
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. 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 resultlng 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 city Manager shall present the evidence establishing the vio-
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
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. 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 for convictions or violations shall be presumed as
follows:
Type of violation 1st violation 2nd Violation 3rd violation
l. Commission of a 10-25 consec. Revocation NA
felony related to days of susp.
the licensed
activity.
:2 . Sale of alcoholic 10-25 consec. Revocation NA
beverages while days of susp.
license is under
suspension.
3 . Sale of alcoholic 0-5 Consecutive 6-15 Consecutive Revocation
beverages to under Days Suspension days Suspension
age person.
'. 4. Sale of alcoholic 0-5 Consecutive 6-15 Consecutive 16 consec.
beverage to intox- Days Suspension Days Suspension days of
icated person. susp.to
Revocation
5. After hours sale 0-2 Consecutive 3-9 Consecutive 10 consec.
of alcoholic Days Suspension Days Suspension days of
beverages. susp. to ;
Revocation
6. Illegal gambling 0-3 Consecutive 4-9 Consecutive 10 consec.
on premises. Days Suspension Days Suspension days of
susp. to
Revocation
7. Permit person to 0-2 Consecutive 3-5 Consecutive 6-10 cons.
leave premises Days Suspension Days Suspension days of
with alcoholic susp. to
beverage. Revocation
8. Violations of City 0-5 Consecutive 6-15 Consecutive 16 consec.
Ordinances per- Days Suspension Days Suspension days of
taining to fire or susp. to
building or health Revocation
codes.
. 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
�� �-» • . � . . ,
CITY OF HOPKINS �
Hennepin County, Minnesota
RESOLUTION #89
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 City Manager shall present the evidence establishing the vio- •
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
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e 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.
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Donald J. Milbeit, Mayor {
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CITY OF HOPKINS
. CONDITIONAL ADMISSION AND WAIVER OF HEARING
The undersigned is the licensee of record for East End Bottle House, located at
404 East Excelsior Avenue, Hopkins, MN 55343. The undersigned hereby acknowl-
edges that on February 4, 1994, an employee of East End Bottle House sold alcoholic
beverages to a person under the age of 21 years in violation of Minnesota Statutes
340A503.
The undersigned recognizes that under Minnesota Statutes 340A.415, the Hop-
kins 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 hear-
ing, 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 impos-
ing the following civil penalty:
1. A seven hundred dollar ($700,00) fine,
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,
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. The licensee has read and understands this agreement and has consulted with
counselor, if not, has been given the opportunity and chose not to do so.
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Kevin Wayne Johnson, Licensee
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Charles Eric Daisy, Licensee
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Date
This agreement will be presented to the Hopkins City Council with the recom-
mendation that it be approved,
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Steven C. Mielke, City Manager
. 9/~ 191
Date
waiver
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C I T Y 0 F H 0 P K I N S
M E M 0 RAN DUM
DATE: August 4, 1994
TO: Steve Mielke
FROM: Wynn Curtiss
RE: State v. Kevin Johnson
State v. Charles Daisy
East End Bottle Plea Agreement
Attached to this Memorandum please find coples of docwnents
titled "Agreement to Suspend Prosecution" . These documents set
forth the general terms upon which the charges against Johnson and
Daisy of sale of alcohol to a minor were resolved. A more complete
record of the terms can be had by obtaining a transcript of the
Stipulation which the parties placed on the record. The actual
. Stipulation was too long to write onto this document and, thus, it
was done orally on the record under oath on June 16, 1994. If you
wish a copy of the transcript, one can be obtained relatively
easily.
Essentially, both parties admitted that they had sold alcohol
to a minor. Further, both parties agreed to waive any defenses
which they might have in the criminal matter, such as the "carding "
defense which states that a liquor licensee is not liable for sale
to a minor if the licensee requests the minor to provide proof of
age and the mlnor provides proof which reasonably causes the
licensee to believe the minor was of majority age. As you know,
that was the defense upon which Johnson and Daisy intended to rely
in this case. Because we had a prior offense from December 1993,
involving a different juvenile in which no I' carding" defense was
available, the parties agreed to waive the claim in this case.
If you have any questior.~; regarding the terms of the
Agreement,s, please contact me.
WC
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Enclosures
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1010 First Street South, Hopkins, Minnesota 55343 612/935-8474
An Equal Opportunity Employer
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-S1'AT"E OF NIHNESOTlI. r r DISTRICTCOURT
COUNTY OF HENNEPIN FOURTIJ JUDICIAL DISTRICT ~,'."
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,.state of Minnesota, ~ Court File NO.,. q"O:;; ~ ~ 3,~ -'~'" " , _'
Plaintiff,) AGREEMENT TO SUSPEND'::.;',~~:_",....,- ';;'-.:~"'_ :-~
) PROSECUTION
v. ) " ...' . . _. '"
Lj,c.~/e!' Ev:iC. ~ t-' y, ! ......... ..... .": u>
Defendant.) "'.... '.
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,Pursuant to Minnesota Rule of ,Criminal -procedu~.:27"051 ,", <.:;';';,
t.he state agrees to suspend prosecution of this -case .until ' "'N~ I' If'i1.':'
'>Or such -earlier time as the attached agreement ,is terminated ..;JJnde'{.~;-~:[~:,:::'~ ,.
.~subdivision -4 of said Rule. ,",~In consideration of ,suchsuspensio,n,:.:,;,.~:~;;(: :~~
, ",.rlefendant hereby waives ",the right ,'to :c'speedy'trial ,::.a.rid ;.1urther ~'H;':'~~.~~h:'.~
agrees to comply..fullywith the followin9.,'conditions.i.puring~he_:=;2'~::;;,'.'f?!Y'It
p;t~~ A~r::::::::: is s::::en:::'.<3:i~ .'~':;'::~~2~t~;;iis~~~tffi"::.~~ft
misdemeanor offense identical 'or 'similar ,to ,th~ ';:.charges ~".'i:~.,:t:,:~~".,.
in the instant case; '">;>,,,:~~,H,>;.,:,..:',\:'';;,,^;~,~<([,,
. -.. ,,~'.~"~.:,<~~",~,,~, .;;~...:,..~_/1~';_:~ ';'_~ ;::;".-\-'f,'~'~";'<;~_.
B. Defendant shall not commit~..-,c:, .~."- ":"'-"~,-~" .. '~";--':-
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. C. Defendant shall make ~estitutio~ _,~~sdir~cte?~l_~Y..,~,~):!:h~,c':c:~~;~~;
" 'Department of Court Servl.cesj n';' : .' ,.,::,~~,.:,:'__::: '.:-_.. .:.\:::..-.,
.. .' .
D. Defendant' shall perform _ ho~r~' of community ~~;vic~~-'" ..e,.,
I:.~. .
E. Defendant shall ,successfully complete'xehabilitation.AS -,-. .:>'
directed by the Department of .Court......-S ervices;. ~ ::' ...' . .' u_, ,
JL F · ~~ ::~:~~ ~ ~h U';f kJ4Il 100 . . in . cou.rt costs. to, t~~,/i;r,~~" ,. :,~:~:
-1L G. D.t~t;ntshall- r!lwfe . Z:L/i~I"~U!JJt~1:4,.e,",q".;':~~,',
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If this agreement is terrnlnatedand prosecutionresumes,::<a':' i' t~.
trial on the instant charges is held, the parties stipulate, t~.at: .:""<,.>';.:".-'=,"
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The Honorable of
the District Court, approved .
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.Defendant ~ . III ity Attorney
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Dated: ~!/~/;;';/ '"
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STATE OF NIHHESOT^ DISTRICT COURT --- ._,-,~,.
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COUNTY' OF HENNEPIN FOURTH JUDICIAL DISTRICT :~.".~:~:.c:::::,,:,,~.-.'
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.ate of Minnesota, ~ court File No. 'i'1(!JO(~ (, 'i "<',:' '>",'_c:::~'~\~:;:i:=-,:~:""
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Plaintiff, ) AGREEMENT TO"SUSPEND '~.-,~-,'~,.i~:"'~~:'~''::::'
) PROSECUTION ,__.. __ ,,~ _, ~,.~
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Ai ~' e V i'N t7l yi\J.L 0 A/..fJA/, ) J .d':'., C ::"'i': '~~-~~:~~:"~~~~ii; ,
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o ef endant'i . .. ..... .. ,., ..,,".;,~,.:..;~~::o~:iS :.l8~J~J~~5~E.;
Pursuant to .Minnesota ,.Rule "Df~rirninal ;;procedu'Ju;}~t''!';'''~'if75)~
',the state agrees to suspend ,prosecution;pf ,this ::.x;::ase.;i:1titiL' " -I.fti4,,;'~~~T;i;::,u
"i-or such earlier time as the attached :agreement is :'~e~ininated .pnd. r~'~:;€~:}~~':.f~:r~:',,'
"cSubd i v is ion 4 ',"Of"l> aid'R ule; '~"o'in u:consid~ration .~r .~:_"suC;h }~'uspension;'~;z,:~'Ii:':;-;i:,."
u::defendant hereby ,waives ,the.right ~" to ,.,Speedy 'c,trial:T~nd :".turther=c-;"W.P.;~:T'f~~tU
. . _ ._,. ... _ . t ~. ."_ .. ... _1-'_ _A.'..".'- .... -., ".:~. .. ..~,:-:.Jl:'~~'u~~~.-'Gi ~r'::' .
u.,. :!:tigrees . toucomply<,~ully ',,~lth ';the~ollowlng -:-condltlons",uur~t:J.g -':t:he"r~~l"~;r;t'~4/.\<-
,...:~eri~<\. .prose~u;~~~'<~~'0~:~.n~.e~'~~~?~~":~;K~~;:f:~~~~~J.~~jr#~~~~1"illl'.'
;,~. '.:A.~:,Defendant ..~''Shall :~~''7Dot '>".commlt',::,:8 ~,:~~:~rInIJ.nal ~-~::t:Ir"Ti.'Pett:Y ~~;t~:;...]'f~~;~:.;.::~~
',. u" ' ": misdemeanor~;offense .identical-or :similar.:to ~:the.charges~r6~~Gh~:.:Ti:,,:
_ D. Defendant shall perform ~.hours of ,cornmunl1:;y ,servlce; ;,::;~,:C/:,g;,~::~;>1'
,:C, . ,: ,', ",,' .,'::.;:,:,-;~~~-~i,',-~=\,~~>~~o:"'.;,::. .::?i.:~,~~:C;:~:~'1~t:;>"..:S:'~~c~:~~r2:?~~~~t@~~~;~:::,
_E. Defendant shall successfully. complete "-'-:-rehabl11tation"as "~=:f;':~;t.::..:~c~
directed by the Department of Court Services; . ,:... <"'~~-".,:~".~}~.;~,:y~,,::,,;'.;'i,::>
. ~F. D7fendant "Sh~Jl' ':'~p~Y"-$: (Of! ,.::~!~:'.~g_~;~~:;~/~.:~~~::~~~~~;~":.-~~ir\~l.'ll~i~~i~~':;~.~-
"Id,.U:u;I""+-....takLi. - O'fj,......,.... .".."',,.,'.",.. "'-"'.'" '.' ....,~'c.-','~...,"""""...' "",,,'.'_,.,," ".",.'.,m,','.,,,.,,._..,.......,
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<" If thisagreernent 'is termin"ated .'::and ,'j>rosec'utlon' ~,ies'umes/~_a' >':~,:3t:s~'-~o-
'~'trial on the instant charges is held, the parties stipulate that: '~'~,o,,:" "1' -",",
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The Honorable G..t of
the jO!Jtrict cour~d agreement on . ".',~.'::
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Defendant Attorney; ~r,: ' ,
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