03/07/2011 Council Packet - Laserfiche WebLink

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Hearing Requirement - State statute also dictates that local fees may not be increased except after notice and hearing on the proposed increase. Notice of the proposed increase must be mailed to all affected licensees at least 30 days before the date set for the hearing. Special Fees — Note also that on -sale license holders have the option to apply for a special license that allows liquor sales until 2:00 a.m. The state charges a fee for the license; the city currently does not. The cost of a background investigation prior issuance of a license is another special fee and is discussed below. Liquor License Investigation Fees The council has had several discussions in the past two years regarding liquor license investigation fees and in particular the fee that is charged annually upon license renewal. In July of 2010 the council heard the recommendation of the police department that the city continue its practice of conducting a background investigation with each license renewal and passed a resolution ratifying the practice. The council also discussed the fee that is charged for the renewal investigation but did not make any change. There was direction for staff to return for further discussion prior to the next license renewal period. Comparison to other cities — A comparison of what other cities are charging for their initial new license investigation fee and for investigations on renewals is attached. Cost of investigation — The Lino Lakes Police Department conducts the city's background investigations. An estimate of the cost of the background process for liquor licensing was requested from the department. Of course each investigation is different so it is not possible to pinpoint the exact amount of police time that it takes to accomplish an investigation. With that understanding, the department has reviewed the current charge, which is $250 for one or two applicants and $450 for three or more applicants. The police department reports that those charges are appropriate according to an average police officer rate (that includes benefits and overhead). Options for change — - Incorporate investigation cost into license fee — As indicated in our survey, some cities do not charge separately for renewal investigations. That may be because the cost is considered to be included in the regular license fee. If the council were to increase license fees to include investigation costs, a notice to license holders and a hearing would be required. Also, as discussed earlier, there is a cap on the amount that can be charged for some types of licenses. Change amount of investigation fee — The council could change the standard charge for investigations. Requested Council Direction Staff seeks the council's direction on any changes to either license fees or the charge for background investigations. If a change is sought for the upcoming liquor licensing period (commencing July 1), a direction is needed soon since renewal information will be sent to license holders in April.