Appointed Committees

LIQUOR ORDINANCE AD HOC COMMITTEE December 7, 2016 Page 1 Committee Members Present: Dean Frantsvog, Shaun Sipma, Chad Thompson, Chuck Vennes, Wayne Whitty Members Absent George Withus, Jesse Zwak Others Present: Cindy Hemphill, Kelly Hendershot, Kelly Matalka, Chief Olson, Carmen Asham, Derek Hackett, Alderman Hedberg, Alderman Shomento, Alderman Straight, Josh Wolsky, Jill Schramm Chairman Frantsvog brought the meeting to order at 2:07 pm. Approval of Minutes from November 23, 2016 Meeting Alderman Sipma moved the committee approve the minutes from the November 23, 2016 committee meeting. Motion seconded by Committee Member Whitty and carried unanimously. Discussion on Pool Halls Sherry McGlaughlin, owner of The Spot Pool Hall, explained, their goal for the business is to have an over 21 area and an area for patrons under 21. She said, they can install a three foot barrier but would need the pool tables and golf simulator to be in the over 21 section in order to cater to the leagues using that equipment. She added, they followed the example of a previous pool hall, The Rack, when designing their business. Upon the suggestion the City adopt a new type of license specifically for pool halls, the City Attorney reminded the committee, generally minors are not permitted on a licensed premises, however, there are exceptions and the only one that would apply in this situation would be if the pool hall is a restaurant. She provided information from the West Fargo ordinance for a recreational license which states that a pool hall, for example, can permit minors in a certain area of the facility, so long as the pool tables take up a certain percentage of the square footage and there is a section of the premises that is separated by a permanent barrier at least three feet in height in which the sale, consumption, or pouring of alcohol is not permitted; that separate section is the only area in which minors are permitted. She concluded by saying, if we change our ordinance to permit the pool hall, there might be an issue obtaining a State license and there are criminal penalties that go along with State law. The committee requested the City Attorney contact the Attorney General’s Licensing Office to find out if there is a way for the pool hall to exist in compliance with State law. Supper Clubs Minors in Supper Club Establishments The Police Chief came forward to discuss his concerns over what constitutes a “room” when referring to the 1|Page LIQUOR ORDINANCE AD HOC COMMITTEE December 7, 2016 Page 2 area which is restricted from persons under twenty-one. The ordinance, which currently matches State law, says: “A person under the age of twenty-one (21) years of age may remain in a restaurant if the restaurant is separated from the room in which alcoholic beverages are opened or mixed and if gross sales of food are at least equal to gross sales of alcoholic beverages which are consumed in the dining area” Chief Olson stated, the method practiced by police is that no minors may sit at the bar but may still sit at a table in the bar area. He said it is difficult to treat everyone the same while also making a judgment call for each specific layout. He added, since it doesn’t keep alcohol away from minors, he is not sure what the intent is and would prefer if it was defined further. Alderman Sipma moved the committee recommend the Council adopt language stating, no minor shall sit at the bar or where beverages are opened and mixed. Motion seconded by Mr. Thompson. Chief Olson responded by saying, if the committee agrees with the interpretation currently in place by the police, then there is no need for a change to the ordinance. Whereupon a vote was taken on the motion by Alderman Sipma, seconded by Mr. Thompson and carried by the following roll call vote: ayes: Sipma, Thompson, Vennes, Whitty nays: Frantsvog Differing Prices during One Day Alderman Sipma questioned whether the numerous constraints for a supper club license are necessary when they already need to verify the business makes at least 50% of their total sales with food. He suggested removing restrictions #4 and #6 from the ordinance. He explained, the restriction preventing supper clubs from offering alcoholic beverages at differing prices during the course of one day, should be eliminated because lowering drink prices may attract more customers who will buy food. Mr. Vennes disagreed by saying, lowering the price of alcohol allows the business to sell a higher quantity of alcohol without increasing their total alcohol sales. Whereupon a vote was taken on the motion by Alderman Sipma, seconded by Mr. Thomson and carried by the following roll call vote: ayes: Frantsvog, Sipma, Thompson. nays: Vennes, Whitty Kitchen Operation Alderman Sipma moved the committee recommend the Council remove the supper club requirement that states, the licensee shall discontinue the sale and consumption of alcoholic beverages on the licensed premises within one hour of the time the full kitchen is not in operation. During all other hours of the supper club, the full kitchen shall remain in operation for continuous food service. Motion seconded by Mr. Thompson. Alderman Frantsvog explained, the requirement was added after an establishment opened that only served 2|Page LIQUOR ORDINANCE AD HOC COMMITTEE December 7, 2016 Page 3 food until 7:00 pm and then operated as a bar after that time. The issue stemmed from the fact that the owner did not have to pay for a retail liquor license, so rules were made to differentiate a restaurant from a bar. Mr. Vennes said, if the intention of the business is to be a restaurant, then there is no reason to close the kitchen. Customers are not expected to stay all day, particularly past the kitchen time. Upon concerns that regulating kitchen hours is difficult to enforce, the Police Chief stated, it would not be easy but it is doable. Whereupon a vote was taken on the motion by Alderman Sipma, seconded by Mr. Thompson and failed by the following roll call vote: ayes: Sipma, Thompson nays: Frantsvog, Vennes, Whitty Seating Requirement Alderman Sipma asked whether the requirement for supper clubs to have a capacity of at least 150 patrons at one time, would apply to an establishment that was in the Renaissance zone at the time it opened but because the Renaissance Zone consistently changes, is removed from the map. The City Attorney stated, that would be an issue the committee should address. Alderman Sipma moved the committee recommend the City Council add a section to the ordinance allowing an establishment in the Renaissance Zone to maintain the exception for seating capacity. Motion seconded by Mr. Thompson. Mr. Whitty moved the motion be amended to include a requirement that the exception must stay with the licensed premises and cannot be transferred. Motion seconded by Mr. Thompson and carried by the following roll call vote: Frantsvog, Sipma, Thompson, Vennes, Whitty, nays: none Whereupon a vote was taken on the motion by Alderman Sipma seconded by Mr. Thompson, as amended and carried by the following roll call vote: ayes: Frantsvog, Sipma, Thompson, Vennes, Whitty, nays: none MAYSA Arena Alderman Sipma moved the committee recommend City Council amend Chapter 5, Article II, Section 5-16 (12), part c., #3 to read: The Minot Park District Board of Commissioners, by special permission, may allow the sale and consumption of beer and/or wine in the facility. Motion seconded by Mr. Whitty. Alderman Sipma explained, the language specifying the area known as the Eck Rink is redundant considering the Minot Park District Board of Commissioners may allow the sale and consumption of beer and/or wine by special permission. He therefore suggested it be removed. Whereupon a vote was taken on the motion by Alderman Sipma seconded by Mr. Whitty and carried by the following roll call vote: ayes: Frantsvog, Sipma, Withus, Vennes, Whitty nays: none 3|Page LIQUOR ORDINANCE AD HOC COMMITTEE December 7, 2016 Page 4 Adjournment There being no further business, the meeting was adjourned at 3:23 p.m. Respectfully Submitted, Kelly Matalka City Clerk 4|Page