HomeMy WebLinkAbout7B, Ordinance 2009-011 & 2009-012 of Chapter 5 Alcoholic BeveragesPrepared By: Meagan Beekman
Council Meeting Date: September 28, 2009
Ordinance 2009-011 and Ordinance 2009-012 Regarding Chapter 5 of the City Code,
Alcoholic Beverages
Budgeted Amount: Actual Amount: Funding Source:
N/A N/A N/A
Recommendation:
Approve Ordinance 2009-011 to amend Chapter 5 of the City Code regarding Alcoholic
Beverage Regulations as presented in the September 28, 2009, report to the City Council.
Approve Publishing a Summary of Ordinance 2009-011.
Approve Ordinance 2009-012 to amend Section III of the City's 2009 Fee Schedule to add
administrative fines for violations to the State's minor consumption laws.
Approve Publishing a Summary of Ordinance 2009-012
Supporting Documents:
1. Ordinance 2009-011
2. Summary of Ordinance 2009-011 for Publishing
3. Ordinance 2009-012
4. Summary of Ordinance 2009-012 for Publishing
5. Chapter 5 — Black -lined version
Ita.-
----ARQEN HILLS
MEMORANDUM
DATE: September 28, 2009
TO: Honorable Mayor and City Council Members
Ron Moorse, City Administrator
FROM: Meagan Beekman, City Planner
SUBJECT: Chapter 5, Alcoholic Beverage Regulations
Requested Action
Approve Ordinance 2009-011 to amend Chapter 5 of the City Code regarding Alcoholic
Beverage Regulations as presented in the September 28, 2009, report to the City Council.
Approve Publishing a Summary of Ordinance 2009-011.
Approve Ordinance 2009-012 to amend Section III of the City's 2009 Fee Schedule to
add administrative fines for violations to the State's minor consumption laws.
Approve Publishing a Summary of Ordinance 2009-012
BackLyround
Staff, together with the City Attorney, has drafted language to update the Alcoholic
Beverages Chapter of the City Code. The impetus for these changes came with the
State's adoption of the smoking ban. At that time the question of how the City regulates
the outdoor consumption of alcoholic beverages was raised. Staff asked the City
Attorney to review the issue. The City Attorney found that the City's existing regulations
did not prohibit outdoor consumption of alcoholic beverages as long as the establishment
holding the liquor license included the square footage of the outdoor consumption area on
the application for the license.
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City Council Meeting for September 28, 2009
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This prompted an internal Staff review of the application and approval process for all
liquor licenses in the City. The application forms have since been updated to clearly
reflect this requirement.
During the course of his review the City Attorney found a number of redundancies within
the City's existing regulations. In addition, he noted that many of the references to State
Statutes were incorrect, and in some cases the City's regulations were inconsistent or
contrary to current State Statutes. Staff and the City Attorney have prepared an update to
Chapter 5, Alcoholic Beverages, in order to bring it in line with current State
requirements. During the course of reviewing the regulations Staff found a number of
opportunities to improve the existing regulations by modernizing language, eliminating
incorrect definitions, and adding administrative fines for violations of the minor
consumption laws.
Copies of the proposed regulations were mailed to all liquor license holders in the City.
Through communications with owners of establishments that hold liquor licenses Staff
was able to gain feedback on the amendments from those most affected by them.
Proposed Amendments
Staff has included a copy of the black -lined version of Chapter 5 in Attachment E. While
Staff is proposing a large number of amendments to Chapter 5, the vast majority are to
update references to State Statute, eliminate redundancies, delete definitions that are not
referenced, and modernize the language used in the regulations. Except for items one
through four below, these amendments do not impact the regulations themselves and do
not represent a change in the City's approach to alcoholic beverage regulations.
The following is a list of proposed amendments to the regulations that depart from the
City's existing regulations, or represent a change in policy:
1. Applications (Section 500.6) —This section was clarified to specifically list the
items required with a liquor license application. This includes a site plan that
indicates every area, both inside and outside the building, which will be utilized
for the serving or consuming of alcoholic beverages.
2. Liability Insurance (Section 500.10) —
equal to the State Statute minimums;
increase these minimums if it chooses.
The liability insurance was adjusted to be
however, the City has the discretion to
3. Sunday On -Sale Intoxicating Liquor (Section 500.16 Subd 6) —The permitted
hours for the sale of alcoholic beverages on Sundays has been adjusted. The
current code regulates that an establishment cannot sell alcoholic beverages
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City Council Meeting for September 28, 2009
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before noon on a Sunday, 8 a.m. on the other six days. The updated code would
have the same starting hours of sale for all days in the week. This change is based
on current practices within the industry, as well as common requirements found in
other Cities.
4. Administrative Fines (Section 500.18) — This section is the most notable change
from the existing regulations. This section of the Code proposes to add
administrative fines for violations to the State's minor consumption laws. In
other words, if an establishment serves alcoholic beverages to a minor, the City
can levy fines against the business. The fines increase with each violation, up to
and including the revocation of the establishment's liquor license. The fines are
stepped up if the business chooses to not participate in a City approved alcoholic
beverage training course for its employees. The fines are being proposed to be
added to the City's 2009 Fee Schedule.
Recommendation
Motion to Approve Ordinance 2009-011 to amend Chapter 5 of the City Code regarding
Alcoholic Beverage Regulations as presented in the September 28, 2009, report to the
City Council.
Motion to Approve Publishing a Summary of Ordinance 2009-011.
Motion to Approve Ordinance 2009-012 to amend Section III of the City's 2009 Fee
Schedule to add administrative fines for violations to the State's minor consumption
laws.
Motion to Approve Publishing a Summary of Ordinance 2009-012
The ordinance changes require a 3/5 vote and the publication summaries require a 4/5
vote.
Options
1. Approve the proposal as submitted.
2. Approve the proposal with changes.
3. Deny the proposal.
4. Table for additional information.
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City Council Meeting for September 28, 2009
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Attachments
A — Ordinance 2009-011
B — Summary of Ordinance 2009-011 for Publishing
C — Ordinance 2009-012
D — Summary of Ordinance 2009-012 for Publishing
E — Chapter 5 — Black -lined version
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City Council Meeting for September 28, 2009
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Attachment A
Ordinance 2009-011
September 28, 2009, City Council Meeting
City of Arden Hills Chapter 5 Alcoholic Beverages
CITY OF ARDEN HILLS
COUNTY OF RAMSEY
STATE OF MINNESOTA
ORDINANCE NO.2009-011
AN ORDINANCE AMENDING CHAPTER 5 REGARDING ALCOHOLIC BEVERAGE
REGULATIONS
THE CITY COUNCIL OF THE CITY OF ARDEN HILLS HEREBY ORDAINS THAT
CHAPTER 5 OF THE CITY CODE REGARDING ALCOHOLIC BEVERAGE
REGULATIONS SHALL BE AMENDED AS FOLLOWS:
Chapter 5 Alcoholic Beverages
Section 500 - General Provisions
500.1 Definitions. For the purposes of this chapter, the following words and phrases shall have
the meanings respectively ascribed to them:
Subd. 1 3.2% Malt Liquor. Malt liquor containing not less than 1 /2 of 1 % alcohol
by volume, nor more than 3.2% alcohol by weight.
Subd. 2 Alcoholic Beverage. Any beverage containing more than V2 of 1 % alcohol
by volume.
Subd. 3 Club. An incorporated organization organized under the laws of the
State of Minnesota for civil, fraternal, social or business purposes, for
intellectual improvement, or for the promotion of sports, and which has
been in existence in the City for fifteen (15) years; or a congressionally
chartered veterans' organization which has been in existence in the City
for ten (10) years; and are organizations that:
A. Have more than 30 members;
B. Have owned or rented a building, or space in a building, for more
than one year that is suitable and adequate for the accommodation
of its members;
C. Are directed by a board of directors, executive committee or other
similar body chosen by the members at a meeting held for that
purpose;
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Revised October 7, 2009
City of Arden Hills Chapter 5 Alcoholic Beverages
D. Do not distribute profits to officers, agents, employees or members
or their guests, from the sale of alcoholic beverages beyond a
reasonable salary or wage fixed and voted each year by the
governing body; and
E. Sell alcoholic beverages only to members and to their guests.
Subd. 4 Distilled Spirits. Ethyl alcohol, hydrated oxide of ethyl, spirits of wine,
whiskey, rum, brandy, gin, and other distilled spirits, including all
dilutions and mixtures thereof, for non industrial use.
Subd. 5 Exclusive Liquor Store. An establishment used exclusively for the sale of
alcoholic beverages; tobacco products; ice; beverages, either liquid or
powder, specifically designated for mixing with intoxicating liquor; soft
drinks; liqueur -filled candies; food products that contain more than 1/2 of
1 % alcohol by volume; cork extraction devices, books and videos on the
use of alcoholic beverages; magazines and other publications published
primarily for the information and education on alcoholic beverages; and
home brewing equipment.
Subd. 6 Hotel. An establishment where food and lodging are regularly furnished
to transients and which has:
A. A dining room serving the general public at tables and having
facilities for seating at least thirty (30) guests at one time; and
B. Guest rooms for at least ten (10) guests.
Subd.7 Intoxicating Liquor. Ethyl alcohol, distilled, fermented, spirituous,
vinous, and malt beverages containing more than 3.2% of alcohol by
weight.
Subd. S Licensed Premises. The compact and contiguous space described in the
approved license application.
Subd.9 Off -Sale. The sale of alcoholic beverages in original packages for
consumption off the licensed premises only.
Subd. 10 On -Sale. The sale of alcoholic beverages for consumption on the licensed
premises only.
Subd. 11 Package. A corked or sealed container of alcoholic beverages as provided
by the manufacturer or distiller.
Subd. 12 Person. An individual, a body politic or corporate, a partnership, and
other unincorporated associations.
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Revised October 7, 2009
City of Arden Hills Chapter 5 Alcoholic Beverages
Subd. 13 Restaurant. An establishment, other than a hotel, under the control of a
single proprietor or manager, where meals are regularly prepared on the
premises and served at tables to the general public, and having a minimum
seating capacity for thirty (30) guests.
Subd. 14 Sale. To directly, or indirectly, on any pretense or by any device, sell,
barter, keep for sale, charge for possession, or otherwise dispose of
alcoholic beverages as part of a commercial transaction.
Subd. 15 Wine. The product made from the normal alcoholic fermentation of
grapes, including still wine, sparkling and carbonated wine, wine made
from condensed must, wine made from other agricultural products than
sound, red grapes, imitation wine, compounds sold as wine, vermouth,
cider, perry and sake, in each instance containing not less than V2 of 1 %,
nor more than 24% alcohol by volume for non -industrial use. Wine does
not include distilled sprits.
500.2 License Required. No person may sell alcoholic beverages without having obtained the
appropriate alcoholic beverage license.
500.3 Types of Licenses. The following types of alcoholic beverage licenses may be issued in
the City of Arden Hills:
1. Off -Sale Intoxicating Liquor. An Off -Sale Intoxicating Liquor License
shall only be issued to exclusive liquor stores.
2. On -Sale Intoxicating Liquor. On -Sale Intoxicating Liquor Licenses shall
only be issued to:
a. Hotels;
b. Restaurants;
d. Clubs;
e. Exclusive liquor stores.
3. Temporary On -Sale Intoxicating Liquor License. A Temporary On -Sale
Intoxicating Liquor License shall be issued only to a club or a charitable,
religious, or other non profit organization that has been in existence for
three (3) years; or a political committee registered under M.S. 10A.14; or
a state university or college; in connection with a social event sponsored
by the licensee within the City. The Temporary On -Sale Intoxicating
Liquor License may not authorize the sale for more than four (4)
consecutive days and may not authorize sales on premises other than the
premises that the licensee owns or occupies within the City.
4. On -Sale 3.2% Malt Liquor License. On -Sale 3.2% Malt Liquor Licenses
shall only be issued to restaurants, hotels, clubs, bowling centers, and
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Revised October 7, 2009
City of Arden Hills Chapter 5 Alcoholic Beverages
establishments used exclusively for the sale of 3.2% malt liquor for
consumption only on the premises.
5. Off -Sale 3.2% Malt Liquor License. Off -Sale 3.2% Malt Liquor Licenses
shall permit the sale of 3.2% malt liquor in the original package for
consumption only off of the premises.
6. Temporary On -Sale 3.2% Malt Liquor Licenses. A Temporary On -Sale
3.2% Malt Liquor License shall only be issued to charitable, religious and
non-profit organizations and shall permit the consumption of 3.2% malt
liquor only on the licensed premises.
7. On -Sale Wine. On -sale wine licenses shall only be issued to a restaurant.
A wine license permits the sale of wine up to 14% alcohol by volume for
consumption with the sale of food. In no event shall an on -sale license be
issued to a fast food restaurant as defined in the City Code.
8. Sunday On -Sale Intoxicating Liquor License. Sunday On -Sale
Intoxicating Liquor Licenses shall be only issued to a restaurant, club,
bowling center, or hotel; which holds an on -sale Intoxicating Liquor
License. An establishment serving intoxicating liquor on Sundays must
obtain a Sunday Liquor License.
500.4 Persons Ineligible for License. No license shall be issued or transferred to, held by, or
renewed for any person:
1. Who is less than twenty-one (21) years of age.
2. Who is, or has a direct interest in, a manufacturer or wholesaler of
intoxicating liquors.
3. Who has direct or indirect interest in any other establishment in the City of
Arden Hills to which an alcoholic beverage license of the same type has
been issued by the City.
4. To whom, in the judgment of the City Council, based upon information
received as part of the application and investigation process, such
issuance, transfer or renewal would not be in the best interest of the
public.
5. Who possess a federal wholesale liquor dealer's special tax stamp or a
federal gambling stamp.
6. Who has, within five (5) years prior to the alcoholic beverage license
application been convicted of a felony, or of violating any law of the
State of Minnesota relating to the manufacture, sale, distribution or
possession for sale or distribution of alcoholic beverages and cannot
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City of Arden Hills Chapter 5 Alcoholic Beverages
demonstrate competent evidence under M.S. § 364.03, as amended from
time to time, of sufficient rehabilitation and present fitness to perform the
duties of an alcoholic beverage license.
500.5 Places Ineligible. An alcoholic beverage license shall not be issued, transferred, or
renewed for the conduct of business in any premises:
1. On which real estate taxes, special assessments, or other financial claims
of the City of Arden Hills are delinquent.
2. Which is located within five hundred (500) feet of any school or any
church unless the premises are currently licensed for the sale of alcoholic
beverages.
3. That is owned by a person to whom no alcoholic beverage license could
be issued under the provisions of the laws of the State of Minnesota.
4. That is not in compliance with the building code, the fire code, and/or the
development regulations of the City of Arden Hills.
500.6 Applications. Applications for an alcoholic beverage license shall be verified and
submitted on forms prescribed by the Minnesota Commissioner of Public Safety or, if such
forms are not available for a particular type of license, on forms provided by the City
Administrator. The applications shall include the following:
1. A legal description for the property on which alcoholic beverages will be
sold or consumed.
2. A scale drawing of the premises in which the alcoholic beverages will be
sold or consumed, including exterior portions thereof, which will be used
for such purpose.
3. The alcoholic beverage license fee and investigation fee.
4. Other information as required in the application form.
500.7 Investigation. Initial alcoholic beverage license applications, renewal applications, and
transfer application shall be referred to the City's law enforcement agency for background and
financial investigations of the applicant and/or owner in such detail as the law enforcement
agency deems appropriate for the type of license being requested.
500.8 Alcoholic Beverage License Fees. The Arden Hills City Council shall adopt an
ordinance which establishes alcoholic beverage license fees and license investigation fees
subject to the limitations contained in Minnesota Statutes 340A.408.
500.9 Refund of Fee.
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City of Arden Hills Chapter 5 Alcoholic Beverages
Subd. 1 Except as provided in this subsection, no part of the fee paid for an
alcoholic beverage license shall be refunded. Refund applications shall
be made within thirty (30) days of the occurrence of the following
events:
A. Destruction or damage to the licensed premise by fire or other
catastrophe to such an extent that the licensee ceases to carry on
the licensed business; and
B. Discontinuance of the business of the licensee by reason of death
or illness of the licensee.
Subd. 2 The Council may, at its discretion, refund a pro rata portion of the license
fee.
500.10 Liability Insurance. No retail alcoholic beverage license may be issued, maintained, or
renewed unless the applicant demonstrates proof of financial responsibility. The City shall
submit to the Commissioner of Public Safety the applicant's proof of financial responsibility.
Subd. 1 Minimum Coverages. The minimum requirement for proof of financial
responsibility may be given by filing:
A. A certificate that states there is an effect for the license period an
insurance policy issued by an insurer required to be license under
Minn. Stat. 60A.07 Subd. 4, or by an insurer recognized as an
eligible surplus lines carrier pursuant to Minn. Stat. 60A.206, or
pool providing at least $50,000 of coverage because of bodily
injury to any one person in any one occurrence, $100,000 because
of bodily injury to two (2) or more persons in any one occurrence,
$10,000 because of injury to or destruction of property of others
in any one occurrence, $50,000 for loss of means of support of
any one person in any one occurrence, and $100,000 for loss of
means of support for two (2) or more persons in any one
occurrence or;
B. A Bond from a surety company with minimum coverages as
provided in Section 500.10, Subd. 1(a).
Subd. 2 Cancellation Provisions. The liability insurance policy required by this
section must provide that it cannot be cancelled for:
A. Any cause, except non-payment of premium, by either the insured
or the insurer, unless the cancelling party has first given thirty
(30) days notice in writing to the City of its intent to cancel the
policy; and
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City of Arden Hills Chapter 5 Alcoholic Beverages
B. Non-payment of premium unless the cancelling party has first
given ten (10) days notice in writing to the City of its intent to
cancel the policy.
Subd. 3 Exemptions. The insurance requirements provided herein do not apply to
licensees who by affidavit established:
A. They are an On -Sale 3.2% Malt Liquor Licensee with sales of
less than $25,000 of 3.2% malt liquor for the preceding year;
B. They are Off -Sale 3.2% Malt Liquor Licensees with sales of less
than $50,000 of 3.2% malt liquor for the preceding year; or
C. They are holders of On -Sale Wine Licenses with sales of less
than $25,000 of wine for the preceding year.
500.11 Granting of Licenses. The City Council may make, or cause to be made, an
investigation, as it deems appropriate, of the claims set forth in the application. The Council
may hold a public hearing relative to the issuance of any license under the provisions of this
section. The granting of on -sale and off -sale liquor licenses shall be discretionary with the
Council. No off -sale liquor license shall become effective until it, together with the proof of
insurance furnished by the applicant, has been approved by the commissioner of public safety.
500.12 All licenses issued under the provisions of this section shall expire on the last day of
December of each year. Each license shall be issued for a period of one year, but if a portion of
the license year has elapsed when the application is made a license may be issued for the
remainder of the year for a pro rata fee. In computing the fee, any expired fraction of a month
shall be counted as one month.
500.13 Renewals. Applications for renewal of an existing license issued under the provisions
of this chapter shall be filed with the City Administrator on or before November 1 of the year
preceding the year which is the subj ect of the license.
500.14 Transfer. No license may be transferred to another person or to another place without
the approval of the City Council. Verified application for transfer shall be made in writing to
the City Administrator and shall be accompanied by certified check or money order payable to
the City, in the amount established by Ordinance adopted by the Council. The Council shall
make or cause to be made an investigation as it deems appropriate regarding the transferee or
the proposed location. This provision shall also apply in the event of application by a corporate
licensee for transfer of stock in the corporation, provided that no transfer fee shall be charged if
the transfer is the first within the period of the license or the stock sought to be transferred does
not constitute fifty (50%) percent or more of the outstanding common stock of the corporation.
It is hereby made the duty of the officers of any corporation holding such a license to notify the
Council of any proposed sale or transfer of any stock that result in another person holding ten or
more percent interest in the corporation. The transfer of any such stock without the knowledge
and consent of the Council shall be deemed sufficient cause for revocation by the Council of
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City of Arden Hills Chapter 5 Alcoholic Beverages
any license granted to the corporation under authority of this subsection. The corporate officers
shall also notify the Council whenever any change is made in the officers of any such
corporation, and failure to notify Council shall be sufficient cause for revocation of any liquor
license granted to the corporation.
500.15 Display. The license issued under the provisions of this section shall be posted in a
conspicuous place on the licensed premises at all times.
500.16 Hours of Sale.
Subd.I On -Sale Intoxicating Liquor. No sale of intoxicating liquor for
consumption on the licensed premises may be made:
A. Between 2:00 a.m. and 8:00 a.m. on Monday through Saturday;
or
B. After 2:00 a.m. on Sunday unless the licensee has also been
issued a Sunday on -sale liquor license.
Subd. 2 Temporary On -Sale Intoxicating Liquor. Permissible hours of sale will
be stated on the permit.
Subd. 3 On -Sale 3.2% Malt Liquor. No sale of 3.2% malt liquor may be made
between 2:00 a.m. and 8:00 a.m. on Monday through Saturday or after
2:00 a.m. on Sunday.
Subd. 4 Temporary On -Sale 3.2% Malt Liquor. Permissible hours of sale will be
specified on the permit.
Subd. 5 On -Sale Wine. No sale of wine may be made between 2:00 a.m, and
8:00 a.m. on Monday through Saturday or after 2:00 a.m. on Sunday.
Subd. 6 Sunday On -Sale Intoxicating Liquor. Sales are permitted between the
hours of 8:00 a.m. on Sunday and 2:00 a.m. on Monday in conjunction
with the sale of food.
Subd. 7 Off -Sale Intoxicating Liquor. No sale of intoxicating liquor may be
made by an off -sale licensee:
A. On Sundays.
B. Before 8:00 a.m. or after 10:00 p.m. on Monday through
Saturday.
C . On Thanksgiving Day.
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City of Arden Hills Chapter 5 Alcoholic Beverages
D. After 8:00 p.m. on Christmas Eve on December 24.
E. On Christmas Day, December 25.
500.17 Suspension and Revocation. Upon the finding that a license holder has failed to comply
with applicable statutes, rules, or city regulations relating to alcoholic beverages, the City may
revoke the license, suspend the license for up to sixty (60) days, impose a civil penalty of up to
$2,000 for each violation as hereinafter provided, or impose a combination of these sanctions.
No suspension or revocation shall take effect until the licensee has been given an opportunity
for a hearing under the provisions of Minn. Stat. 14.57 to 14.69 of the Administrative Procedure
Act.
500.18 Administrative Fines. The purpose of this section is to establish an escalating scale of
penalties for the sale of alcoholic beverages to an underage person; for the sale of alcoholic
beverages to an obviously intoxicated person; for permitting after hour sales, display, or
consumption of an alcoholic beverage; or illegal gambling on premises committed by the
license holder or its employees.
Subd. 1 For on -sale and off -sale license holders who participate in optional
manager and server training, subject to the approval of the City, and
prove the person who sold or served alcohol had received server training
within the previous year:
A. For a first violation, the license holder will be given a warning
letter and one (1) additional compliance check.
B. For a second violation, in thirty-six (36) months, the penalty shall
be an administrative fine as set by the City's fee schedule and one
(1) additional compliance check.
C. For a third violation in thirty-six (36) months, the penalty shall be
an administrative fine as set by the City's fee schedule, a one (1)
day suspension and one (1) additional compliance check.
D. For a fourth violation in thirty-six (36) months, the penalty shall
be an administrative fine as set by the City's fee schedule, a three
(3) day suspension and one (1) additional compliance check.
E. For a fifth violation in thirty-six (36) months, the license shall be
revoked.
Subd.2 For on -sale and off -sale license holders who do not participate in
optional manager and server training, subject to the approval of the City:
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City of Arden Hills Chapter 5 Alcoholic Beverages
A. For a first violation, the penalty shall be an administrative fine as
set by the City's fee schedule and one (1) additional compliance
check.
B. For a second violation in thirty-six (36) months, the penalty shall
be an administrative fine as set by the City's fee schedule and one
(1) additional compliance check.
C. For a third violation in thirty-six (36) months, the penalty shall be
an administrative fine as set by the City's fee schedule, a three (3)
day suspension and one (1) additional compliance check.
D. For a fourth violation in thirty-six (36) months, the penalty shall
be an administrative fine as set by the City's fee schedule, a five
(5) day suspension and one (1) additional compliance check.
E. For a fifth violation in thirty-six (36) months, the license shall be
revoked.
Effective Date. Ordinance No. 2009-011 shall become effective the day following its
publication, or the publication of the Ordinance Summary in the City's official newspaper.
Adoption Date. Passed by the City Council of the City of Arden Hills the 28th day of
September, 2009
Stanley D. Harpstead, Mayor
ATTEST;
Ronald J. Moorse, City Administrator
Publication Date. Published on the 7th of October 7, 2009.
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10
Attachment B
Summary of Ordinance 2009-011 for
Publishing
September 28, 2009, City Council Meeting
CITY OF ARDEN HILLS
COUNTY OF RAMSEY
STATE OF MINNESOTA
SUMMARY OF ORDINANCE NO.2009-011
On the 28th day of September, 2009, the Arden Hills City Council adopted Ordinance
No. 2009-011, and by at least four/fifths affirmative votes pursuant to Minn. Stat. §412.191,
Subd. 4, and directed that a summary of Ordinance 2009-011 be published.
Ordinance 2009-011 is titled: An Ordinance Amending Chapter 5 of the City Code
Regarding Alcoholic Beverage Regulations.
A full copy of Ordinance 2009-011 is available for inspection by any person during
regular business hours at the office of the City Administrator, 1245 West Highway 96, Arden
Hills, Minnesota 55112. The Ordinance is also available online at http://www.ci.arden-
hills.mn.us.
Attachment C
Ordinance 2009-012
September 28, 2009, City Council Meeting
CITY OF ARDEN HILLS
COUNTY OF RAMSEY
STATE OF MINNESOTA
ORDINANCE NO.2009-012
AN ORDINANCE ADDING A SPECIAL INVESTIGATIONS FEE TO THE 2009 FEE
SCHEDULE ADOPTED IN ORDINANCE 2008-016,
THE CITY COUNCIL OF THE CITY OF ARDEN HILLS HEREBY ORDAINS THAT
THE FOLLOWING FEE SHALL BE ADDED TO SECTION III OF THE 2009 FEE
SCHEDULE:
III. Liquor Licensing
Minor Consumption Violation
with Server Training
...............................................................................................................................................................................................................................................................................................................................................................................................................................................................
Second Violation
Third Violation
$1,000
-lation
Fourth Violation
$1,500
Minor Consumption Vio--------
without Server Training
................................................................................................................................................................................................................................................................................................................................................................................................................................................
First Violation
$500
Second Violation
$1,000
......................................................................................................................................................................................................................................................................................................................................................................................................................................
Third Violation
$1,500
Fourth Violation
$25000
Effective Date. Ordinance No. 2009-012 shall become effective the day following its
publication, or the publication of the Ordinance Summary in the City's official newspaper.
Adoption Date. Passed by the City Council of the City of Arden Hills the 28th day of
September, 2009
Stanley Harpstead, Mayor
ATTEST:
Ronald Moorse, City Administrator
Publication Date. Published on the 7th of October, 2009.
Page 1 of 1
Attachment D
Summary of Ordinance 2009-012 for
Publishing
September 28, 2009, City Council Meeting
CITY OF ARDEN HILLS
COUNTY OF RAMSEY
STATE OF MINNESOTA
SUMMARY OF ORDINANCE NO, 2009-012
On the 28th day of June, 2009, the Arden Hills City Council adopted Ordinance No.
2009-012, and by at least four/fifths affirmative votes pursuant to Minn. Stat. §412.191 , Subd. 4,
directed that a summary of Ordinance 2009-012 be published.
Ordinance 2009-012 affects Section III of the City of Arden Hills 2009 Fee Schedule,
entitled Liquor Licensing. The purpose of this ordinance addition is to add administrative fines
for violations of the State's minor consumption laws.
A full copy of Ordinance 2009-012 is available for inspection by any person during
regular business hours at the office of the City Administrator, 1245 West Highway 96, Arden
Hills, Minnesota 55112. The Ordinance is also available online at http://www.ci.arden-
hills.mn.us.
Attachment E
Chapter 5 —Black-lined Version
September 28, 2009, City Council Meeting
City of Arden Hills Chapter 5 Alcoholic Beverages
Chapter 5 Alcoholic Beverages
Section 500 - General Provisions
500.1 Definitions. For the purposes of this chapter, the following words and phrases shall have the
meanings respectively ascribed to them:
Subd. 1
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Subd. 2 Alcoholic Beverage. ALay beverage containing more than 1/2 of 1 % alcohol by
volume.
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Subd. 3 Club. An incorporated organization organized under the laws of the State of
Minnesota for civil .fraternal social or business -ppMoses, for intellectual
improvement, or for the promotion of sports, and which has been in existence
in the City .for fifteen 1.5 ears • or a congressionally chartered veterans'
organization which has been in existence in the City for ten (10) years; and
are organizations that:
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Ttann.,',l�n-22 00-=Revised AuLyust 31, 2009
City of Arden Hills Chapter 5 Alcoholic Beverages
A. Have more than 30 members;
B. :Have owned or rented a buildin.g, ors ace in. a building,for more
than one year that is suitable and adequate for the accommodation of
its members;
C. Are directed by a board of directors, executive committee or other
similar body chosen by the members at a meeting held for that
purpose;
D. Do :not distribute profits to officers agents, employees ees or members or
their guests, from the sale of alcoholic bevera,,ges beyond a reasonable
saIM or wage fixed and voted each year by the goveming bod • and
E. Sell alcoholic beverages only to members and to their guests.
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Subd. 4 Distilled Spirits. Ethyl alcohol, hydrated oxide of ethyl., spirits of wine,
whiskey, rum, brandy, gin, and other distilled spirits, including all dilutions
and :mixtures thereof., for non. industrial. use.
Subd. 5 Exclusive Liquor. Store. An. establishment used exclusively .for the sale of
alcoholic beverages; tobacco products; ice; beverages, either liquid or
owder, specifically designated for m.i.xin with. intoxicating liquor; soft
drinks; liqueur -filled candies; food products that contain more than V2 of 1 %
alcohol. by volume; corkextraction. devices books and videos on. the use of
alcoholic beverages; magazines and other publications published primarily_
for the information and education on alcoholic beverages; and home brewing.
equipment.
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Subd. 6 :Hotel. An establishment where food and lodging are regularly furnished to
transients and which has:
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City of Arden Hills Chapter 5 Alcoholic Beverages
A. A dining room serving the general public at tables and having
facilities .for seatin at least thirty ests at one time and
B. Guest rooms for at least ten (10) Ruests.
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Subd. 7 Intoxicating Liquor.. Ethyl. alcohol., distilled, fermented, sp i.ri tuous, vinous,
and malt beverages containing more than 3.2% of alcohol by weight.
Subd. 8 Licensed Premises. The compact and conti uous space described in the
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gpproyedlicense a licafton.
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Subd. 9 Off Sale. The sale ofalcoholic beverages to on final packages for
consumption off the licensed premises only.
Subd. 10 On -Sale. The sale of alcoholic beverages for consumption on the licensed
remises only.
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Subd. 11 Package. A corked or sealed container of alcoholic beverages as provided by
the manufacturer or disti.11er..
Subd. 1.2 :Person.. An in.divi.dual, a body pol-itic or corporate, a partnership, and other
unincorporated associations
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City of Arden Dills Chapter 5 Alcoholic Beverages
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Subd. 13 Restaurant. An establishment other than a hotel under the control of a sin le
proprietor or manasaer, where meals are regularly prepared on the premises
and, served at tables to the general public, and having a minimum seating
capacity for thirty (3 0) guests.
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Subd• 14 Sale. To directly, or indirectly, on any pretense or by any device, sell, barter,
ke,ep for sale charge.. for possession, r otherwise dispose of alcoholic
beverages as part of a commercial transaction.
Subd• 15 Wine. The product made from the normal alcoholic fermentation of cranes
including still wine Mark-lingMark-ling and carbonated wine wine made from
condensed must, wine made from other agricultural products than sound, red
grapes, imitation wine compounds sold as wine vermouth cider,.,pegy and
sake, in each instance containing not less than 1/2 of 1 %, nor more than 24%
alcohol by volume for non -industrial use. Wine does not include distilled
s rits.
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Revised AuLyust 31, 2009
City of Arden Hills Chapter 5 Alcoholic Beverages
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Revised August 31, 2009
City of Arden Hills Chapter 5 Alcoholic Beverages
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500.2 License Required. Noerson may sell alcoholic beverages without having obtained the
appropriate alcoholic beverage license.
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500.3 Types of Licenses. The following types of alcoholic beverage licenses may, be issued in the
City of .Arden Hills:
l . Off -Sale Intoxicatin Liquor. An Off --Sale Intoxicatinor Liquor License shall
only be issued to exclusive liquor stores.
2. On -Sale Intoxicating Liquor. On -Sale Intoxicating Liquor Licenses shall only
be issued to:
a. Hotels-
b. Restaurants;
d. Clubs;
5-6
Revised Auiust 31, 2009
City of Arden Hills Chapter 5 Alcoholic Beverages
e. Exclusive liquor, stores.
3. Temporary On -Sale Intoxicating Liquor License. A Temporary On -Sale
Intoxicatin Li uor License shall be issued only to a club or a charitable
religious, or other non profit organization that has been in existence for three
(3) or a political committee registered under M.S. 1OA.14• or a state
university or college; in connection with a social event sponsored by the
licensee within the City. The Temporary On -Sale Intoxicating Liquor
License may not authorize the sale for more than four (4) consecutive days
and mgy not authorize sales on premises other than I the premises that the
licensee owns or occupies within the City.
4. On -Sale 3.2% Malt Liquor License. On -Sale 3.2% Malt Liquor Licenses
shall only be issued to restaurants, hotels, clubs, bowling_ centers, and
establishments used exclusively...for the sale of 3.2% malt liquor for
consumption only on the premises.
5. Off -Sale 3.2% Malt Liquor License. Off -Sale 3.2% Malt Liquor Licenses
shall permit the sale of 3.2% malt liquor in the original package for
consumption only off of the premises.
6. Temporary On -Sale 3.2% Malt Liquor Licenses. A Temporary On -Sale
3.2% Malt Liquor License shall only be issued to charitable reli ions and
non-profit organizations and shall permit the consgLnnption of 3.2% malt
liquor only on the licensed premises.
7. On -Sale Wine. On -sale wine licenses shall only be issued to a restaurant. A
wine license permits the sale of wine u to 14% alcohol b volume for
consumption with the sale of food. In no event shall an on -sale license be
issued to a fast food restaurant as defined in the City Code.
8. Sunday On -Sale Intoxicating Liquor License. Sunday On -Sale h-itoxicatin
Liquor Licenses shall be only issued to a restaurant club bowling center, or
hotel; which holds an on -sale Intoxicating Liquor License. An establishment
serving intoxicat,ing liquor on Sundays must obtain a Sundgy Liquor License.
500.4 Persons Ineligible for License. No license shall be issued or transferred to, held by, or
renewed for any person:
1. A Who is r less than twenty-one (21) years of age_ Or Tom'-�—itus
2. R: Who is, or who -has a direct Ar i:ndira^* interest in, a manufacturer or
wholesaler of intoxicating liquors.;
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Revised August 31, 2009
City of Arden Hills Chapter 5 Alcoholic Beverases
3. � Who haste directly or indirectly interested in any other establishment
in the City of Arden Hills to which an. alcoholic beverage -license
of the same e4ss-type has been issued th" hs the City.
4. To whom, in the ,judpm-entLi..Qiz..,"iL.LmiL.L.P.I.,iL.A.:LnL of the City Council, based upon
information. received as part of the gp licati.on and investigation rocess such.
issuance, transfer or renewal would not be in the best interest of the
public. . .
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5. F=:L • k 14 %J X. n . L'.L.Q.1_Who possess a federal wholesale liquor dealer's
special tax stamp or a federal gambling stamp;-ainit.,/Ew.
6. Who hl2o :uas, within five (5) years prior to the alcoholic bevera e
license application�� n'i]nonnl^��� been convicted of a felony, or of violating
any law of ih"x '+.�+n ^r JL.W%V%A �,.,�;,�„,�e the State of. Minnesota relating to the
manufacture, sale, distribution or possession for sale or distribution of
e- .alcoholic bevera es and cannot
Lie -demonstrate competent evidence under M.S. § 364.03, as amended
from time to time, of sufficient rehabilitation and present fitness to perform
the duties of �1�-]-� an alcoholic beverage license.
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City of Arden Hills Chapter 5 Alcoholic Beverages
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500.5 Places lnel' ible. An alcoholic beverage e license shall. not be issued transferred, or renewed
for the conduct of business in any premises:
1
Can which real estate taxes, special assessments, or other financial claims of
the City of Arden Hills are delinquent.
2. Which. is located within. five hundred 500 .feet of an.y school. or any church
unless the premises are currently licensed for the sale of alcoholic bevera es.
3. That is owned by a person. to whom no alcoholic beverage license could be
issued under the provisions of the laws of the State of Minnesota.
4. That is not in com-pliance with the building code the fire code and/or the
development regulations of the City of Arden Hills.
5-9
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City of Arden Hills Chapter 5 Alcoholic Beverages
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500.6 A lications. A l.ications .for an. alcoholic bevera e license shall. be verified and submitted
on forms prescribed by the Minnesota Commissioner of Public Safety or, if such forms are not
available for a articular type of license on forms provided by the City A.dm.ini.strator.. The
applications shall include the following:
1. A legal description for the property on which alcoholic beverages will be sold
or consumed.
2. A. scale drawing of the premises in which the alcoholic beverages will be sold
or consumed, including _ exterior portions thereof, which will be used for such
purpose.
3. The alcoholic beverage license fee and investigation fee.
4. Other information as required in the a icati l.on form.
5-10
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Clty of Arden Hills Chapter 5 Alcoholic Beverages
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500.7 Investigation. Initial alcoholic bevera e li.cense a l.ications renewal woplications, and
transfer application shall be referred to the City's law enforcement agency for background and
financial. invest:i. ations ofthe anpplicant anal/or owner in such. detail as the .law enforcement agency
deems appropriate for the type of license being requested.
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500.8 Alcoholic Beverage Li.cense Fees. The Arden Hills City Council shall adopt an ordinance
which establishes alcoholic beverage license fees and license investigation fees subject to the
limitations contained in. Minnesota Statutes 340A.408.
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5-12
Revised Au ust 31, 2009
City of Arden Hills Chapter 5 Alcoholic Beveraties
500.9 Refund of Fee.
Subd. 1. :Except as provided in. this subsection, no part of the fee paid for an alcoholic
beverage license shall be refunded. Refund applications shall be made within
thirty (30) days of the occurrence of the followi.ngevents:
A. Destruction or damage to the licensed premise by fire or other
catastrophe to such an extent that the licensee ceases to CgM on the
licensed business; and
B. Discontinuance of the business of the licensee by reason of death or
illness of the licensee.
Subd. 2 The Council may, at its discretion, refund a pro rata portion of the license fee.
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500.10 Liabilit I_n.suran.ce. 'No retail alcoholic beverage license may be issued maintained or
renewed unless the applicant demonstrates proof of financial responsibility. The City shall submit to
the Commissioner of Public Safely,the applicant's proof of financial. res onsibilit .
Subd. 1. Min.i.m.um. Coverages. The minimum. requirement for proof of financial
responsibility may be given by filing:
5-13
Revised Auiust 31, 2009
City of Arden Hills Chapter 5 Alcoholic Beverages
A. A certificate that states there is an effect for the license period an.
insurance policy issued by an insurer required to be license under
Minn.. Stat. 60A.07 Subd. 4 or by an insurer. recogLlized as an. eligible
surplus lines carrier pursuant to Minn. Stat. 60A.206, or pool
providing at least $50 000 of coverage because ofbodil i.n'ua to an
one person in any one occurrence, $100,000 because of bodily injury
to two 2 or more erson.s in. ggy one occurrence $1.0 000 because of
injury to or destruction of property of others in any occurrence,
$50 000 for loss of means of support of any one person in. any one
occurrence, and $100,000 for loss of means of support for two (2)or
more persons in any one occurrence or;
B. A Bond from a surety company with minimum coverages as provided
i.n Section 500.1.0, Subd. 1,.
Subd. 2 Can.cellation. Provisions. The liability insurance policy required by this
section must provide that it cannot be cancelled for:
A. Any cause except non- a .ent ofremium by either the insured or
the insurer, unless the cancelliniz partyhas first given thirty (30)
da s
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notice in writin to the City o.f.its intent to cancel the olic • and
B. Non --payment of premium unless the cancelling party has firstgiven
ten 10 days notice in writing to the City of its intent to cancel the
olic .
Subd. 3 Exemptions. The insurance requirements provided herein do not apply to
licensees who by affidavit established:
A. They are an On -Sale 3.2% Malt Liquor Licensee with sales of less
than $25,000 of 3.2% malt liquor. for the preceding year;
B. They are tiff --Sale 3.2% Malt Liquor Licensees with sales of less than
$50 000 of 3.2% malt liquor for the reced:in ear• or
C. They are holders of On -Sale Wine Licenses with sales of less than
$25,000 of wine for the preceding,,year•
5-14
Revised AuLyust 3.1_ 2009
City of Arden Hills Chanter 5 Alcoholic Beverages
500.11 Grantini of Licenses. The City Council may make, or cause to be made, an investiization, as
it deems a ro riate of the claims set forth in the application. The Council m,gy hold a ubli.c
hearing relative to the issuance of any license under the provisions of this section. The granting of
on -sale and off. -sale liquor licenses shall be discretionary with the Council. No of sale liquor license
shall become effective until it together with the proof of insurance furnished by the a _ licant has
been. a :roved by the commissioner of ubl.ic safet .
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500.12 All licenses issued under the provisions of this section shall expire on the last da�of
December of each year.:Each license shall. be issued .fora penod of oneyear, but if a portion. of the
license year has elapsed when the application is made a license may be issued for the remainder of
the year.for a prorata fee. In com uti.g the fee any expired fraction. of a month shall. be counted
as
one month.
5-15
Revised AuLyust 31, 2009
City of Arden Hills Chanter 5 Alcoholic Beverages
500.13 Renewals. Applications for renewal of an existiniz license issued under the provisions of this
cha ter shall. be filed with. the City Administrator on or before November 1 of the year preceding the
year which is the subject of the license.
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500.14 Transfer. No license may be transferred to another person or to another place without the
a roval of the City Council.. Venified a l.ication for transfer shall. be made in writing to the Cit
Administrator and shall be accompanied bv certified check or money order a able to the City, in the
amount established by Ordinance ado ted bv the Council. The Council shall make or cause to be
made an investijzation as it deems appropriate regarding the transferee or the proposed location. This
provision shall also anoly in the event of a li.cati.on. by a corporate licensee .for transfer of stock in
the corporation, provided that no transfer fee shall be charged if the transfer is the first within the
eriod of the license or the stock sought to be transferred does not constitute fifty 5 0% ercent or
more of the outstanding common stock of the corporation. It is hereby made the duty of the officers
of any,corporation ation holding such a license to notify the Council of. an ro osed sale or transfer of an.
stock that result in another ,person holding ten or more percent interest in the corporation. The
transfer of any such stock without the knowledge and consent of the Council. shall be deemed
sufficient cause for revocation by the Council of any license ranted to the corporation under
authority of this subsection.. The corporate officers shall also noti.fy the Council whenever an
change is made in the officers of any such corporation, and failure to notify Council shall be
sufficient cause for :revocation of any liquor license ..anted to the co oration.
5-16
Revised AuLyust 31, 2009
�,
Clty of Arden Hills Chapter 5 Alcoholic Bevera es
500.15 DisplU. The license issued under the provisions of this section shall be posted in a
cons icuous lace on the licensed premises at all times.
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500.16 :Hours of Sale.
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Subd. 1 On -Sale Intoxicating Liquor. No sale of intoxicatiniz liquor for consumption
on. the twensed premises may be made:
y
A. Between 2:00 a.m. and 8:00 a.m. on Monday through Saturday; or
.B. After 2:00 a.m.. on Sundav unless the licensee h.as also been issued a
Sunday on -sale liquor license.
5-17
Revised August 31, 2009
City of Arden Hills Chapter 5 Alcoholic Beverages
Subd. 2 Temporary On -Sale Intoxicatiniz Liquor. Permissible hours of sale will be
stated on the ermi.t.
Subd. 3 On -Sale 3.2% Malt :Liquor. No sale of 3.2% malt liquor mate made
between 2:00 a.m. and 8:00 a.m. on Monday through Saturday, nor between
2:00 a.m. and 1.0:00 a.m.. on. Sunda .
Subd. 4 Temporary On -Sale 3.2% Malt Liquor.. Permissible hours of sale will be
specified on the permit.
Subd. 5 On -Sale Wine. No sale of wine may be made between 2:00 a.m. and 8:00
a.m. on Monday through. Saturday or after 2:00 a.m.. on. Sunda .
Subd. 6 Sunday On -Sale Intoxicating Liquor. Sales are permitted between the hours
of 8:00 a.m. on Sundgy and 2:00 a.m.. on. Monday in conjunction with. the sale
of food.
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5-18
Revised AuLyust 31, 2009
City of Arden Hills Chanter 5 Alcoholic Beverages
Subd. 7 Off -Sale Intoxicating Liquor. No sale of intoxicating liquor may be made bX
an off -sale licensee:
A. On Sundays.
B. Before 8:00 a.m. or. after. 1.0:00 .m.. on'mondav through. Saturday.
C. On Thanksgiving Day.
D. After 8:00 .m. on. Christmas Eve on. December 24.
E. On Christmas Day, December 25.
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500.17 Suspension and Revocation.. U on th.e.finding that a license holder has.failed to complv with
a licable statutes rules or cityregulations relatingto alcoholic beverages, the Citymay revoke the
license sus end the license for wo to si.xt 60 days, impose a civilpenally of pp to $2 000 for each.
violation as hereinafter provided, or impose a combination of these sanctions. No suspension or
revocation shall, take effect until the licensee has been given an. opportunity .for. a hearing under the
provisions of Minn. Stat. 14.57 to 14.69 of the Administrative Procedure Act.
500.18 Administrative Fines. The purpose of this section is to establish an escalating scale of
penalties for the sale of alcoholic beverages es to an underage er. son• for the sale of alcoholic
beverages to an obviously intoxicated person; for permitting after hour sales, display, or consumption
of an alcoholic beverage; or illegal gambling on. premises committed by the l.icen.se holder or its
employees.
Subd. 1 For on -sale and off -sale license holders who participate in optional manager
and server training, subject to the a roval of the City, and prove the person.
who sold or served alcohol had received server traininiwithin the previous
xear:
A. For a first violation the license holder will. be given a warning letter
and one (1) additional compliance check.
B. For a second violation, in thirty-six (36) months, the -penalty, shall be
an administrative fine as set by the Cit 's fee schedule and one 1.
5-19
Revised August 31, 2009
CIO of Arden Hills Chapter 5 Alcoholic Beverages
additional compliance check.
C. For a third violation. in thirt -six 36 months the penally shall be an
administrative fine as set by the City's fee schedule, a one (1 ) day
suspension and one 1 additional compliance check.
D. For a fourth violation. in. th.irt -six 36 months, the -penalty shall. be an
administrative fine as set b, the City's fee schedule, a three (3) du
suspension and one 1 additional compliance check.
E. For. a fifth. violation, in. thirty-six 36 months, the license shall. be
revoked.
Subd. 2 :For on -sale and off -sale license holders who do not participate in optional
manager and server training, subject to the approval of the Cites
A. For a first violation, the penalty shall be an administrative fine as set
by the City's fee schedule and one(I).-additional. compliance check..
B. For a second violation. in thirty-six, 36 months the penalty shall be
an administrative fine as set by the City's fee schedule and one (1
additional compliance check.
C. For a third violation in thirty-six 36 months the penally shall be an
administrative fine as set by the City's fee schedule, a three (3) dqv
suspension and one 1 additional compliance an.ce check.
D. For. a .fourth. violation. in. thirty-six 36 months, the penalty shall. be an
administrative fine as set by the City's fee schedule, a five (5) day
suspension and one 1 additional compliance check.
E. :For a fifth violation. in thirty-six (36) months the license shall be
revoked.
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5-20
Revised August 31, 2009
City of Arden Dills Chapter 5 Alcoholic Beverages
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Revised AuLyust 31, 200,
City of Arden Mills Chanter 5 Alcoholic Beverages
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Revised August 31, 2009
City of Arden Hills Chapter 5 Alcoholic Beverages
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5-23
Revised August 31, 2009
CLq of Arden Hills Chapter 5 Alcoholic Bevera es
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City of Arden Hills Chapter 5 Alcoholic Bevera es
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