CR 96-158 Liquor License Violation - BW3•
September 30, 1996
St even C. Mielke
City Manager
O P K k d
LIQUOR LICENSE VIOLATION —BW3
• Proposed Action
Staff recommends adoption of the following motion: Move that the conditional admission and
waiver of hearing agreement between the City Manager and the licensees of BW3 be accepted
and approved.
The affect of this action will be to find the BW3 restaurant to be in violation of the liquor laws of
Hopkins, and to levy a fine of $500 for the first violation, and a suspension of the liquor license
for six days due to the second violation.
Overview
The sale of alcoholic beverages to under age individuals is subject to criminal prosecution
under 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 Hopkins liquor laws after the criminal prosecution has been completed.
Presumptive penalties for violations have also been established. On May 3, 1996, the Police
Department conducted an investigation at BW3 and found that BW3 served alcoholic
beverages to underage individuals. Criminal charges were brought against the bartender who
pled guilty to a misdemeanor charge. On August 10, 1996 police again conducted an
investigation at BW3 and again, alcoholic beverages were sold to underage individuals by a
bartender.
The City Manager, with the assistance of the City Attorney and Police Chief, have reviewed the
relative nature of this case and are recommending a monetary penalty of $500 for the first
violation, with the funds being dedicated to the Chemical Health Commission for use in
programs intended to help prevent alcohol use by underage individuals. A recommendation is
also placed, recommending a suspension of the liquor license for six days for the second
violation. Staff is proposing that the six days be imposed on consecutive days beginning
October 14 and ending on October 20 as detailed in the Conditional Admission and Waiver of
Hearing Agreement.
Primary Issues to Consider
• What is the City's policy regarding liquor license violations?
• What alternatives does the City Council have?
• Is the penalty reasonable?
Supporting Information
• Staff analysis of issues
• Conditional Admission and Waiver of Hearing
• Council Policy on Liquor Violations
Council Report 96 -158
Council Report 96 -158
Page 2
Staff Analysis of Issues
• 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 Waiver of Hearing to which they are
entitled before the Council.
• What alternatives does the City Council have?
Under the City policy and state law, the City Council is not required to follow the
agreement 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.
• Is the penalty reasonable?
The City Council has established presumptive penalties for violations. The sale of
alcoholic 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 $500 in
lieu of the suspension of the license for the first violation, with the funds being
dedicated to the Chemical Health Commission for use in programs intended to help
prevent alcohol use by underage individuals. A recommendation is also place,
recommending a suspension of the liquor license for six days for the second
violation. Staff is proposing that the six days be imposed on consecutive days
beginning October 14 and ending on October 20 as detailed in the Conditional
Admission and Waiver of Hearing agreement.
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 intentional 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.
CITY OF HOPKINS
Conditional Admission and Waiver of Hearing
The undersigned is the licensee of record for Stone Creek Inc., dba BW3, located at
502 Blake Road, Hopkins, Minnesota. The undersigned hereby acknowledges that on
May 3, 1996, an employee of BW3 sold alcoholic beverages to a person under the age
of 21 years in violation of Minnesota Statutes §340A.503.
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 the
following civil sanction:
$500.00 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.
Page 1
• The licensee has read and understands this agreement and has consulted with counsel
or, if not, has been given the opportunity and has chosen not to do so.
condadmiswaiv
Page 2
Licensee
Date
Date
1
This agreement will be presented to the Hopkins City Council with the recommendation
that it be approved.
• City Manager
9fao /9L
CITY OF HOPKINS
Conditional Admission and Waiver of Hearing
The undersigned is the licensee of record for Stone Creek Inc., dba BW3, located at
502 Blake Road, Hopkins, Minnesota. The undersigned hereby acknowledges that on
August 10, 1996, an employee of BW3 sold alcoholic beverages to a person under the
age of 21 years in violation of Minnesota Statutes §340A.503.
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 the
following civil sanction:
Six day suspension of license beginning 1 a.m. October 14, 1996 and ending 1 am.
October 20, 1996. 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.
Page 1
The licensee has read and understands this agreement and has consulted with counsel
or, if not, has been given the opportunity and has chosen not to do so.
condadmiswaiv
Page 2
Date
This agreement will be presented to the Hopkins City Council with the recommendation
that it be approved.
City Manager
Date
4 773 o J9,6