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However, this interpretation is somewhat in conflict with City Code 302.10, subd. ~, which reads: FVACUATIC?l~ ~F ®11T .SALE E.S7'A~LIS'H11~EN7`,~': tl~irt~~-tnint~te t-estf-ictiotz: A.ll ~atrotzs of an on-sale establishment selling intoxication liquor or non-intoxication malt liquor must vacate the pf-e~nises ~vitliin thirt~f (30) trainutes of the o~~ae o'clock (1:00) ani ter~ninatiofl of sales ot~i weekdays and Satisrdays, and within thirty (30~ minutes of the twelve o 'clock (12: DO) midnigd~t termination of sales ofr Stniday .. . The language 121 this portion of City Code suggests that it was (and is) the City's intent to prohibit the sale of liquor at on-sale establishments beyond twelve o'clock (12:00) midnight on Sundays, and one o'clock (1:00) am on all other days of the week. On-sale liquor establishments are currently following these hours of operations. The City Attorney will be prepared to give his interpretation of the Code, and whether it satisfies the legal requirement for setting the hours of operation. To ensure clarity with regard to this issue,, Staff is recommending that the Council re-state its position on the hours of operation for on-sale liquor establishments. The following courses of action are available to the Council. Actions #1 and #2 are dependent upon the Council's interpretation of the existing City Code (see above). 1) Take no further action with regard to the hours of operation, and to direct Staff to notify all on-sale liquor establishments that closing time will remain at twelve o'clock (12:00) midnight on Sundays, and one o'clock (1:00) am on all other days of the week, as specified by City Code and currently followed. 2) Take no further action with regard to the hours of operation, and to direct Staff to notify all on-sale liquor establishments that closing time will remain at one o'clock (1:00) am on Sundays, as specified by City Code, and two o'clock (2:00) am on all other days, as allowed by State Statute. 3) Set a public hearing for Monday, June 30`h, to consider extending the hours of operation for on-sale liquor establishments, potentially allowing for a change in local ordinance prior to the new State law taking effect on July 1, 2003. 4) Set a public hearing for a later date, to allow for a more comprehensive review process. Staff is prepared to notify all existing on-sale liquor license holders of any public hearing or proposed action of the Council.