08/03/2009 Council Packet - Laserfiche WebLink

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WS — Item #4 WORK SESSION STAFF REPORT Work Session Item #4 Date: August 3, 2009 To: City Council From: Julie Bartell Re: Liquor License Investigation Fee Background As allowed by state statute, the city has established fees for licensing and regulation of liquor sales (including 3.2 malt beverages). The city's adopted fee schedule includes both a license fee and a fee for background investigations. As staff has reported previously, those applying for licenses in Lino Lakes are charged a fee to cover the city's cost to conduct a background investigation for their initial license application and for their annual renewal. The Lino Lakes Police Department conducts these investigations. The annual liquor licensing period for the city runs from July 1 through June 30 so this year's renewal activities have just been completed. One licensee, Tom Wilzbacher of Red Oak Steaks and Wines, Inc. has paid less than the amount of fees due. He is declining to pay the annual background investigation fee of $250 (individual). Staff has sought the advice of the City Attorney in this matter. City Attorney Joseph Langel advises that while state statute clearly requires a background check on initial liquor license applications and allows the city to charge a fee up to $500, it makes background investigation for license renewals optional. A renewal investigation may be undertaken if the Council "deems it in the public interest." While it can be inferred from past practice and Council discussions that the Council finds such investigations to be generally appropriate, there is no record of a formal decision to that effect. Moreover, Ordinance Section 701.05, subd. 1, seems to call for more of a case -by -case approach. It states that a renewal investigation "on a particular application" shall be undertaken if the Council deems it in the public interest. The practice, however, has not been to make such determinations on specific applications. 1