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Item No: 7 Meeting Date: Sept 7, 2010 Type of Business: Work Session City of Mounds View Staff Report To: Honorable Mayor and City Council From: James Ericson, City Administrator Item Title/Subject: Review of Possible Amendment to Chapters 502 and 503 Relating to Liquor Sales on Sundays Introduction: The City Council adopted Ordinance 843 earlier this year on May 10, 2010. The ordinance made numerous changes to both Chapter 502 and 503 regulating liquor sales in the City of Mounds View. Discussion: One of the changes in Ordinance 843 addressed liquor sales on Sundays. The Council deleted reference to specific foods that had to be made available for sale on Sundays. In addition, the City Council deleted reference to an additional license that could be obtained by establishments to provide for sales of alcohol from 10:00 am to noon on Sundays. It was staff’s assumption that no licensed entity served alcohol during this time, since no establishment had ever requested the additional license. It has come to our attention that both Mermaid and Moe’s have a history of serving alcohol on Sundays before noon, usually in conjunction with a brunch or some other food service. Neither owner was aware that a separate license in addition to the Sunday license was needed to serve for the two hours before noon on Sundays. (The State of MN allows for the sale and service of alcohol beginning at 10 am Sundays.) While the original language, now deleted, seemed fairly straightforward, clearly it had been interpreted otherwise by two of our licensed establishments. The section of Code, as revised by Ordinance 843, is as follows, with the pertinent deleted language highlighted in yellow: 502.12: HOURS AND DAYS OF SALES: Subd. 2. Sunday Sales: Notwithstanding the provisions of subdivision 1 of this Section, on- sale establishments restaurants, clubs, bowling centers and hotels with seating capacities for at least 30 persons and which hold an on-sale intoxicating liquor licensed to sell intoxicating liquor on Sunday may serve same intoxicating liquor between the hours of twelve o’clock (12:00) noon and two o’clock (2:00) A.M. on Sundays in conjunction with serving the sale of food upon obtaining a Sunday Sales license from the City. In addition, the City Council may authorize, by license, a licensee to serve intoxicating liquors between the hours of ten o’clock (10:00) A.M. and twelve o’clock (12:00) noon on Sunday in conjunction with the serving of food only to persons seated at tables ordinarily used for dining. Provided, however, that the licensed establishment is in conformance with the Minnesota Clean Air Act. (Ord. 475, 10-9- 89; Amended, Ord. 717, 7-28-03)