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3 MGM Liquor License Hearing CITY OF CHANBASSEN 7700 Ma1lœt &ulMrd PO Box 147 Chanhassen. MN 55317 Administration Phone: 952.227.1100 fax: 952.227.1110 Building Inspeclloos Phone: 952.227.1180 Fax: 952.227.1190 Englne..lng PIlone: 952.227.1160 Fax: 952227.1170 Finance PIlone:952.227.1140 Fax: 952.227.1110 Park & Recreation Phone: 952.227.1120 Fax: 952.227.1110 RecrealionCenter 2310 Cooner BoulMrd PIlone: 952.227.1400 Fax: 952227.1404 Plannhlg & Halural Resooltn Phone: 952.227.1130 Fax: 952.227.1110 Public Works 1591Park Road Phone: 952227.1300 Fax: 952227.1310 Senior Cenllr Phone: 952227.1125 Fax: 952227.1110 Web Sill rfflW.ci.chanlkissen.mn.us 8 MEMORANDUM TO: Mayor City Council FROM: Todd Oerhardt, City Manager ~~ DATE: March 7, 2002 SUBJ: Public Hearing on Intoxicating Liquor License Violation, MOM Liquor Warehouse, 7856 Market Boulevard Attached please find a letter and hearing notice sent to MOM Liquor Warehouse concerning an alleged intoxicating liquor license violation in May of 2001 where a clerk sold liquor to a minor. Mr. Maglich, President of MOM, will be present at Monday's hearing. Attached is a copy of the City Code concerning liquor license violations. MOM has provided information to the City Attorney's office regarding a new $15,000 cash register system that has been installed since this violation occurred. The new system will not allow the sale of liquor without the driver's license being scanned by the computer. Only a manager, not a clerk, may override the system. The City Attorney will present the Council with a Stipulation of Facts and Civil Sanction Agreement on Monday night for discussion and Council action. The City 01 Chanhanen . A growing communi~ wilh clean lakes. qualily schools. a channing downlown, Ihriving businesses, winding Irails, and beautiful parks. A greal place 10 live, work, and play. i U~'~IIU~ ~/;d~ r'4A Uð~ 4bZ ÖÖ5U (;AJU'IŒLL KNIJTSON .. CIlANBASSEN CH 141004 CITY OF CHANBASSEN CARVER COUNTY, MINNESOTA InRe: City of Chanba~~en Liquor Licensing Complaint Against BEARING NOTICE REGARDING ALLEGED LIQUOR LICENSE VIOLATIONS MOM Wme & Spirits Inc., d/b/a MOM Liquor Warehouse TO: MOM WINE & SPIRITS INC., DfB/A MOM liQUOR W AREßOUSE, ATIN: TERRANCE J. MAGLICH, PRESIDENT, 7856 MARKET BOULEY ARD, CHANHASSEN, MN 55317. FROM: CAMPBELL KNUTSON, PROFESSIONAL ASSOCIATION, CITY ATTORNEYS FOR THE CITY OF CHANHASSEN. YOU, AS A LIQUOR LICENSEE, ARE HEREBY INFORMED that on the 11th day of March, 2002, at 7:00 p.m., in the Council ChamberS of the CbanbllS8CIl City Hall, 7700 Market Boulevard, Ch~nbAo<JeIl, Minnesota, ther.hAn},aOsen City Council will conduct a hearing, pw:suant to Section 10-39 of the Chanhassen City Code and Minnesota Statote §340AA15, regarding allegations that the licensee violated provisions of State law and City ordinances reg\ll.mng liquor . establishments, as follows: L On May 31, 2001, Ms. Sara Jean Bollig, an employee ofMGM, did sell intoxicating liquor to an underage person on the licensed premises of MOM in violation of Chanhassen .~ty Code Section 10-47(a). If your establishment is found to be in violation as charged, the City Council may revoke the license, impose a suspension for up to sixty (60) days, or impose a civil fine not to exceed $2,000.00 for each violation. 02/27/02 17:34 FAX 651 452 5550 CAMPBELL KNlITSON .. CIlANBASSEN CH 141005 You are entitled to be present at the hearing and to be represented by an attorney. If the: hearing is contested, you are entitled to call witnesses, present probative evidence, cross-examine witnesses, :rod submit rebuttal evidence, all as allowed by Minnesota Statute § 14.60. Dated: :}.\'ð'l .2002 CAMPBELL KNUTSON Professional Association By: ~ Elliott B. Knetsc 68130 Chanhassen City Attorneys § 10-37 CHANHASSEN CITY CODE (e) That the licensee suffered or permitted illegal acts upon the licensed premises or on property owned or controlled by the licensee acljacent to the licensed premises, unrelated to the sale of intoxicating liquor or three and two-tenths (3.2) percent malt liquor; (f) That the licensee had knowledge of illegal acts upon or attributable to the licensed premises, but failed to report the same to the police; (g) Expiration or cancellation of any required insurance, or failure to notify the city within a reasonable time of changes in the term of the insurance or the carriers. (Ord. No. 299, § 1, 3-13·00) Sec. 10-38. Inactive license. The city council may revoke the intoxicating liquor or three and two-tenths (3.2) percent malt liquor license of any establishment granted a license that is not under construction and exhibiting satisfactory progress toward completion within sui'{6) months from its issuance, or any establishment that ceases operation for a period of six (6) months. A hearing shall be held to determine what progress has been made toward opening or reopening the establishment and, if satisfactory progress is not demonstrated, the council may revoke the license, (Ord. No. 299, § 1, 3-13-00) Sec. 10·39. Hearing notice. Revocation or suspension of a license by the city council shall be preceded by a public hearing conducted in accordance with Minnesota Statutes Section 14.57 to 14.70. The city council may appoint a hearing examiner or may conduct a hearing itself. The hearing notice shall be given at least ten (10) days prior to the hearing, include notice of the time and place of the hearing, and state the nature of the charges against the licensee. (Ord. No. 299, § I, 3-13-00) ~ Sec. 10-40. Minimum civil penalties. (a) Purpose. The purpose of this section is to establish criteria by which the city council determines the length of license suspensions and the propriety of revocations, and shall apply to all premises licensed under this article. These penalties are the minimum penalties appropriate for most situations; however, the council may deviate in an individual case where the council fmds that there exist reasons making it more appropriate to deviate, such as, but not limited to, a licensee's efforts in combination with the state or city to prevent the sale of alcohol to minors. when deviating from these standards, the council will provide written fmdings that support the penalty selected. (b) Minimum penalties for violations. The minimum penalties for convictions or violations are as follows (unless specified, numbers below indicate consecutive days' suspension); Supp. No. 12 558 LICENSES, PERMITS, BUSINESS REGULATIONS § 10-40 Appearance Type of Violation 1st 2nd 3rd 4th 1. . Commission of a felony re- Revocation NA NA NA lated to the licensed activity 2. Sale of alcoholic beverages Revocation NA NA NA while license is under sus- pension 3. Sale of alcoholic beverages to 3 6 18 Revocation under-age person 4. Sale of alcoholic beverages to 3 6 18 Revocation obviously intoxicated person 5. After hours sale of alcoholic 3 6 18 Revocation beverages 6. After hours display or con- 3 6 18 Revocation sumption of alcoholic bever- ages 7. Refusal to allow city inspec- 5 15 Revocation NA tors or police admission to inspect premises 8. Illegal gambling on premises 3 6 18 Revocation 9. Failure to take reasonable 3 6 18 Revocation steps to stop. person from leaving premises with alco- holic beverages 10. Sale of intoxicating liquor Revocation NA NA NA where only license is for three and two-tenths (3.2) percent malt liquor (c) Multiple violations. At a licensee's first appearance before the council, the council must act upon all of the violations that have been alleged in the notice sent to the licensee. The council in that case must consider the minimum penalty for each violation under the first appearance column in subsection (b) above. The occurrence of multiple violations is grounds for deviation from the minimum penalties in the council's discretion. (d) Subsequent violations. Violations occurring after the notice of hearing has been mailed, but prior to the hearing, must be treated as a separate violation and dealt with as a second appearance before the council, unless the city manager and licensee agree in writing to add the violation to the first appearance, The same procedure applies to a second, third, or fourth appearance before the council. (e) Subsequent appearances. Upon a second, third, or fourth appearance before the council by the same licensee, the council must impose the minimum penalty for the violation or violations giving rise to the subsequent appearance without regard to the particular violation Su"", No. 12 559 § 1040 CHANHASSEN CITY CODE or violations that were the subject of the first or prior appearance. However, the council may consider the amount of time elapsed between appearances as a basis for deviating from the minimum penalty imposed by this section. (0 Computation of appearances. After the first appearance, a subsequent appearance by the same licensee will be determined as follows: (1) If the first appearance was within three (3) years of the current violation, the current violation will be treated as second appearance. (2) If a licensee has appeared before the council on two (2) previous occasions, and the current violation occurred within five (5) years of the first appearance, the current violation will be treated as a third appearance. (3) If a licensee has appeared before the council on three (3) previous occasions, and the current violation occurred within seven (7) years of the first appearance, the current violation will be treated as a fourth (4th) appearance. (4) Any appearance not covered by subsection (1), (2), or (3), above will be treated as a first appearance. (g) Other penalties. Nothing in this section shall restrict or limit the authority ofthe council to suspend up to sixty (60) days, revoke the license, impose a civil fine not to exceed two thousand dollars ($2,000.00), to impose conditions, or take any other action in accordance with law; provided, that the license holder has been afforded an opportunity for a hearing in the . manner provided in this article. (Ord. No. 299, § 1, 3·13-00) DIVISION 3. RETAIL SALES REGULATION Sec. 10·41. Right of inspection. (a) Any city designated police officer displaying proper identification shall have the unqualified right to enter, inspect, and search the premises of any licensee hereunder without a warrant, during business hours or when owners, managers, or other employees are located on the premises, (b) the business records of the licensee, including federal and state tax returns, shall be available for inspection by the city at all reasonable times upon written request. <Ord. No. 299, § I, 3-13·00) See. 10-42. Responsibility of licensee. (a) Orderly conduct. Every licensee shall be responsible for the conduct on the licensee's place of business including conduct and activity attributable to the business on property owned or controlled by the licensee. Every licensee shall also cooperate with the city in controlling activity attributable to the business in surrounding areas. Supp. No. 12 560 03/08/02 13:58 FAX 651 234 6237 CAMPBELL KNUTSON PA ~002 CAMPBELL KNUTSON Thorn.. J. Campbo!l ROA'cr N. Knut$01\ Tho"",, M. ScOTT Elliott 13. Kn.""h oo! J. Jamnlk Andrea Ml.:DoweU Poehler M.,th.", K- Broldo .. .A.hlllrmlJ(d ill Wüamsin Professional Alssociation Attomeys at Law (651) 452·5000 Fax (651) 452-5550 John F. Kelly Matthew J. Foli Soren M. Mattick Maruuerile M. McC3m:m Gina M. Br-.tnd[ March 8, 2002 Mr. TemmceJ. MagHch Mr. NtichaelG. Maglich MOM Wine & Spirits Inc. 1124 Larpenteur AvelUle W. SI. Paul, MN 55113-6300 VIA FACSIMILE Re: Intoxicating Liquor License Violation at MGM Liquor Warehouse Dear Sirs: Pursuant to my telephone conference with Terrance on March 7, 2oo~, enclosed please fmd a Stipulation of Facts and Civil Sanction. The Stipulation provides for a $1,000 civil sanction in lieu of a three day suspension. This Stipulation replaces the one I faxed to you yesterday. If the Stipulation is acceptable, please execute and fax a copy to me by noon on Monday and bring the origi nal to the Council meering on Monday, March 11, 2002. It is my understanding mat Michael will be present at the meeting on behalf of MOM. Please caU if you have any questions. Very truly yours, CAMPBELL KNUTSON Professìono./ Associa fion .~ netsch By: EBK;nme enc. cc: Todd Gerhardt (via facsimile only) Karen Engelhardt (via facsimile only) Suire 317 . Eagandale Office Center . 1380 Corporate Center Curve · Eagan, MN 55121 ----23/08/02 13:58 FAX 651 234 6237 CAMPBELL KNUTSON PA taJ003 CITY OF CIlANBASSEN CARVER COUNTY, MINNESOTA In Re: City ofChanhassen Liquor Licensing Complaint Against STIPULATION OF FACTS AND CIVIL SANCTION MOM Wine & Spirits, Inc., d/b/a MOM Liquor Warehouse The City of ChAnbA~Sen, through its undersigned attorney, and MGM Wine & Spirits Inc., d/b/a MOM Liquor Warehouse: (''MOM''), through its undersigned authorized officer, hereby agree and stipulate as follows: 1. MGM is licensed tmder Chanhassen City Code: Chapter 10, Article II, to operate an off-sale liquor establishment at 7856 Market Boulevard, in the City of Chanhassen. 2. On May 31, 2001, Ms. Sara Jean Bollig, an empl(,yee of MOM, did sell intoxicating liquor to an underage person on the licensed premises ofMGM ill violation ofChanhassc:n City Code Section 10-47(a). 3. Copies of the Carver County Sheriff's DepartmelJt reports regarding this incident are incorporated into this Stipulation by reference. 4. This constitutes MGM's First Appearance before the City Council pursuant to Chanhassen City Code §10-40. 5. Since this violation occurred, MOM has installed a new state of the art computerized cash register system, at a cost of over $15,000, which requires the customer's identification card to be scanned before a sale is made. A sales clerk cannot ovenide the system.. Only a store manager with a key can override the system. _ 03/08/02 13: .59 FAX 651_ 234 6p7 CAMPBELL KNVTSON PA ~004 6. MOM's off-sale liquor license is suspended for thne (3) consecutive days. The imposition of the suspension is stayed until March 11, 2005, on tl:.e following conditions: a. Payment of a civil sanction of$I,Oooby April 11, 2002. b. No further violations of state law or Chanhassen ordinances relating to alcoholic beverages. c. Payment of all real estate taxes. d If a new violation occurs, the tlu-ee (3) day suspension will not be imposed until MOM has been afforded an opportun:.ty for a hearing before the City Council. e. If there are no violations of these conditions, the tlu-ee (3) day suspension will be discharged on March 11. 2005. 7. MOM waives its right to the hearing provided by Minnesota Statute §340A.415 and Chanhassen City Code Section 10-39. 8. The civil sanction set forth in Section 6 is contingent upon the CbanblLqsen City Council's approval. Ifthe City Council rejects the sanction agreed to in this Stipulation in favor of more severe sanctions, MOM has the absolute right to withdraw this Stipulation and its waiver of hearing and to have a hearing before the City Council. Dated: S(1 ,2002 CAMPBELL KNUTSON Professional Assoc.ration By: Elliott B. Knetsc Ch,,"¡'A~set: City ttomeys 317 Eagane.a1e Office Center 1380 Corporate Center Curve Eagan. MN 55121 Telephone: (651) 452-5000 03/08/02 13:59 FAX 851 234 8237 Dated: .2002 CAMPBELL KNUTSON PA MGM WINE & SPIF1TS INC.. DIBIAMGMLlQUClR WAREHOUSE. By: Title: 141005 CITY OF CHANHASSEN CARVER COUNTY, MINNESOTA InRe: City of Chanhassen Liquor Licensing Complaint Against FINDINGS OF FACT AND DECISION MOM Wine & Spirits, Inc., d/b/a MOM Liquor Warehouse The City Council of the City of Chanhassen hereby makes the following Findings of Fact and Decision in the above-captioned matter: FINDINGS OF FACT 1. The City Council has jurisdiction in thiß matter to make this decision, and the licensee was properly served the Hearing Notice Regarding Alleged Liquor License Violation. 2. The City Council adopts and accepts the licensee's Stipulation of Facts and Civil Sanction as executed by the licensee and the City Attorney. 3. The Hearing Notice Regarding Alleged Liquor License Violation and the Stipulation of Facts and Civil Sanction are incorporated into this Findings of Fact and Decision by reference. 4. This constitutes MOM's First Appearance before the City Council pursuant to Chanhassen City Code §1O-40. 5. The City Council finds there is a substantial reason to deviate from the presumptive penalty as follows: a. Since this violation occurred, MOM has instaJled a new state of the art computerized cash register system, at a cost of over $15,000, which requires the customer's identification card to be scanned before a sale is 99418 made. A sales clerk cannot override the system. Only a store manager with a key can override the system. 6. On the basis of the Stipulation of Facts, the City Council finds and concludes that the licensee, MOM Wine & Spirits Inc., d/b/a MOM Liquor Warehouse ("MOM"), violated state law and the Chanhassen City Code as set forth in the Stipulation. DECISION MGM is sanctioned as follows: 1. MOM's off-sale liquor license is suspended for three (3) consecutive days. The imposition of the suspension is stayed until March 11, 2005, on the following conditions: a. Payment of a civil sanction of $1,000 by April 11,2002, b. No further violations of state law or Chanhassen ordinances relating to alcoholic beverages. c. Payment of all real estate taxes, d. If a new violation occurs, the three (3) day suspension will not be imposed until MOM has been afforded an opportunity for a hearing before the City Council. e. If there are no violations of these conditions, the three (3) day suspension will be discharged on March 11,2005. Dated: ,2002 CITY OF CHANHASSEN BY: Linda C. Jansen, Mayor AND: Todd Oerhardt, City Manager 99418