Agenda - Planning Commission - 05/01/2003

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Presentation Police Chief Way stated that the fees charged for on-sale liquor licenses have not increased since 1982. In a comparison of cities with a population of 10,000 to 20,000, the fees range from $200.00 per year to $10,000.00 per year for on-sale liquor licenses. The average on-sale license for these comparison cities is $4,753.00 per year. The City of Ramsey is currently well below the average for comparison cities. All license applications are referred to the Chief of Police and to the other City departments for verification and investigation of the facts of the application. A fee may be charged for investigations, up to $500.00 per year, per Minnesota State Statute. The City of Ramsey conducts alcohol compliance checks on all licenses as defined in Minnesota State Statute. Numerous costs are incurred while conducting these checks, including but not limited to, personnel wages (includes officers and compliance checkers, clerical staff) attorney fees, and equipment. Officers are often times needed to testify in court on these matters at an overtime rate. For these reasons, staff is proposing to increase the license fee for on-sale liquor establishments from $4,000 to $4,500 to more accurately reflect the costs incurred by the City in issuing and enforcing the license. Citizen Input Gary Gruber, Diamonds Sports Bar, stated that he was not present to oppose the fee, but he wanted to point out some of the issues business owners have been experiencing this year. He explained that business owners have seen 150 to 200 percent increase in insurance premiums, as well as a significant increase in property taxes, not to mention that everyone's business has decreased because of the difficult economy. Mr. Gruber stated that the $500 increase is not a tremendous amount and he does believe in compliance checks, but all the increases businesses are facing is something he would like the Council to keep in mind. Motion by Councilmember Pearson, seconded by Councihnember Kurak, to close the public hearing. Motion carried. Voting Yes: Mayor Gamec, and Councilmembers Pearson, Kurak, Cook, Elvig, Strommen, and Zimmerman. Voting No: None. The public hearing closed at 7:23 p.m. Council Business The regular meeting of the City Council was called back to order at 7:23 p.m. Motion by Councilmember Kurak, seconded by Councilmember Strommen, to adopt Resolution //03-03-075 to increase on-sale liquor license fees. Motion carried. Voting Yes: Mayor Gamec, and Councilmembers Kurak, Strommen, Cook, Elvig, and Zimmerman. Voting No: Councilmember Pearson. City Council/March 25, 2003 Page 5 of 16 P43