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<br />REQUEST FOR COUNCIL ACTION <br />Date: 6/17/2024 <br />Item No.: 9.b. <br />Department Approval City Manager Approval <br /> <br /> <br />Item Description: Consider Penalty for Liquor License Violation at Shake Shack <br />1 <br />2 Background <br />3 On Monday, May 6, 2024, the Roseville City Council held a public hearing regarding an alcohol <br />4 compliance failure at Shake Shack. The violation occurred on March 23, 2024, when a server at Shake <br />5 Shack provided an underage checker with an alcoholic beverage during the city's semi-annual <br />6 compliance checks. Since Shake Shack had also failed a compliance check on November 11, 2023, the <br />7 Council imposed the presumptive penalty for a second alcohol compliance violation in 36 months, <br />8 resulting in a $2,000 fine and a five-day suspension of liquor sales. <br />9 <br />10 On May 13, 2024, a written notice of the penalty was hand-delivered to the manager of Shake Shack. <br />11 This notice also explained the appeal process. The notice also stated that if an appeal was not filed <br />12 within ten days, their liquor license would be suspended from May 24 to May 28, 2024. In addition to <br />13 hand-delivering the written notice, Community Action Team (CAT) officers met with the manager to <br />14 verbally explain the suspension. In addition, Shake Shack was issued a $2,000 fine, which has been <br />15 paid. An appeal was not filed. <br />16 <br />17 On May 24, 2024, a plainclothes officer visited Shake Shack to ensure compliance with the five-day <br />18 liquor suspension. The officer ordered a beer and was served an alcoholic beverage by a server. The <br />19 server stated she was unaware of the suspension. Officers then spoke with the manager, who <br />20 acknowledged awareness of the suspension but admitted to forgetting to notify staff or implement <br />21 procedures to suspend alcohol sales. <br />22 <br />23 On June 10, 2024, officers delivered the attached notice to Shake Shack, advising them of the council <br />24 discussion of the violation. <br />25 <br />26 Under the Roseville City Code, the penalty for selling alcoholic beverages while a liquor license is under <br />27 suspension is a 60-day suspension for a first-time offense. <br />28 <br />29 Policy Objectives <br />30 The objective of this policy is to enforce compliance with the Roseville City Code regarding the <br />31 responsible sale of alcoholic beverages. By imposing the appropriate penalties for violations, the policy <br />32 aims to ensure that all licensed establishments adhere to their obligations and understand the serious <br />33 consequences of non-compliance. <br />34 <br />35 Racial Equity Impact Summary <br />36 There do not appear to be any racial equity impacts related to this violation. The enforcement of the <br />37 penalty is consistent with city regulations and applies uniformly to all licensed establishments to ensure <br />38 fair and equitable treatment. <br />39 <br />40 Budget Implications <br />Page 1 of 2 <br />Qbhf!79!pg!331 <br /> <br />