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My recommendation is we should take a "wait and see" approach on this issue. While we should <br />allow our bar operators to remain competitive, I do not think this is an issue we should take the lead <br />on given the potential impacts on law enforcement and past complaints about noise /disturbing the <br />peace. If neighboring communities enact this change, then I think the idea merits greater attention. <br />Should the Council consider amending the Municipal Code to provide for a 2 a.m. closing time, it <br />would be staff's recommendation that the City impose a 2 a.m. license fee. Our initial thoughts are <br />that the rate should be at least half the fee being charged by the State: <br />State Fee Min. City Fee <br />Up to $100,000 in gross annual receipts for intoxicating liquor $200 $100 <br />$100,000 to $500,000 $500 $250 <br />Over $500,000 $600 $300 <br />3.2% Malt Liquor Licenses or Set Up License Holders $200 $100 <br />Please note that it will be necessary to hold a Public Hearing to amend our liquor license fees. <br />The Council should provide further direction as to how you would like to proceed with this issue. <br />cc: On -Sale Liquor Establishments <br />