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i QUEST FOR COUNCIL CONSIDERATION Agenda Section: 8. CMS STAFF REPORT Report Number: 94-1963WS August 1, 1994 AGENDA SESSION DATE Report Date: 7-26-94 DISPOSITION Item Description: Discussion Regarding Liquor License Rate Structure Administrator's Review/Recommendation: - No comments to supplement this report - Comments attached. Explanation/Summary (attach supplement sheets as necessary.) SUMMARY; At the July, 1994, Council Worksession, the City Council was presented with a new method of determining liquor license fees for establishments affected by the City's on-sale with cabaret liquor licensing requirements. This new method based the liquor license fee on square footage of each establishment, distinguishing between space that is primarily used as bar area and space that is primarily used as dining area. A multiplier, which was calculated by dividing the total cost incurred to the City per establishment (cost per call X number of calls per year) by the square footage of bar area and square footage of dining area, was used to yield the cost per square foot for each individual establishment. At the request of the Council, to make the process more fair and easier to administer, the average cost per type of area was calculated and used as the constant multiplier to determine the liquor license fees. The following calculations better describe this. BAR AREA DONETELLES • $.62/sq. ft ROBERT'S • $.58/sq. ft MERMAID • $.76/sq. ft TOTAL $1 .96/3 = $.65 is the average cost/sq. ft per establishment for selling liquor in primarily a bar area. QiikU Tim Cruikshank, Asst. to City Admin. RECOMMENDATION;