HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/06/2006 - SECOND READING OF ORDINANCE NO. 087, 2006, AMENDIN ITEM NUMBER: 31
AGENDA ITEM SUMMARY DATE: June 6, 2006
FORT COLLINS CITY COUNCIL STAFF: Aimee Jensen
Teresa Ablao
Robert Younger
SUBJECT
Second Reading of Ordinance No. 087, 2006, Amending Chapter 3 of the City Code to Allow
Alcohol Beverage Tastings.
RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
EXECUTIVE SUMMARY
This Ordinance amends the City Code to allow beer and wine tastings at retail liquor stores. The
number of tasting events for a retail liquor store license will be limited to 52 days per year. It was
adopted on First Reading on May 16, 2006 with a vote of 6-1 (Nays: Ohlson).
ITEM NUMBER: 30
AGENDA ITEM SUMMARY DATE: May16, 2006
FORT COLLINS CITY COUNCIL STAFF: Aimee Jensen
Teresa Ablao
Robert Younger
SUBJECT k.� U y y
First Reading of Ordinance No. 087, 2006, Amending Chapter 3 of the City Code to Allow
Alcohol Beverage Tastings (Options A and B).
RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
FINANCIAL IMPACT
ThisOrdinance will set an a 7a (el5 to e t administrative costs of issuin pg
and tracking tasting permits, vi lace the City's General Fund.
EXECUTIVE SUMMARY
This Ordinance will amend the City Code to allow alcohol beverage tastings at retail liquor
stores. Staff is presenting two options for Council consideration. Option A will limit alcohol
beverage tastings to beer and wine. Option B will allow tastings of spirituous liquors as well as
beer and wine. The number of tasting events for a retail liquor store license would be limited to
52 days per year.
BACKGROUND
In 2004, the Colorado General 1 ove or signed into law, House Bill
04-1021 [now codified as C. . §1 - -301 ) it ocal jurisdictions to allow retail
liquor stores and liquor-licen d drug res c duct s le tastings of alcohol beverages
(beer, wine and liquor) in their a is wi t char for such samples. This bill also
requires that, if a local government desires to allow such tastings in its jurisdiction, the local
governmental body must do so by ordinance.
In response to requests from several Councilmembers, staff reviewed tastings ordinances from
other jurisdictions and weighed the advantages and disadvantages of permitting tastings in Fort
Collins, the cost to the City to do so, and safety and law enforcement concerns.
May 16, 2006 -2- Item No. 30
After discussion at the April 25, 2006 work session, Council reviewed information regarding
alcohol beverage tastings and directed staff to present two optional versions of a tastings
ordinance.
Option A- Limits Alcohol B erage sting o e an e
This option will result in mini diti to d poli rvices. It is estimated that 16+
staff hours would be required annually for administration and enforcement. The administrative
costs (Deputy City Clerk, Assistant City Attorney and Municipal Judge) would be approximately
$600, depending on how many stores apply for a permit. There are currently 29 retail liquor
stores in Fort Collins.
A fee would be imposed for the issuance of a tastings permit. Staff is recommending the fee for
processing an initial application be in the amount of$150 with a renewal fee of$50.
State law prohibits the City from taking law enforcement costs into consideration in determining
the amount of the application fee. Enforcement would be driven by complaint only. A proactive
approach to enforcement (random compliance checks) would increase administrative costs to
$1200 (32+hours).
m r County has opted to 1Clan
i quo tPhet
n to eer and wine tastings only and,
Lan e C p q g Y
ty
to date, has issued two tastint in uned mer County - one in south Fort
Collins and one outside of L e s (Att hment 2) for other jurisdictions'
fees and limitations.
Option B- Allows Tastings of Spirituous Liquors as Well as Beer and Wine
This option will require staff and police resources of 16+ hours annually (approximate
administrative cost $600), depending on how many stores apply for a permit. State statute
allows a local Jurisdiction to impose stricter requirements than the State requirements regarding
g
the days on which tastings can be held, the duration of a tastings and the number of tastings that
can be held each year per licensee.
During the April 25th work session, staff recommended the following requirements and
restrictions to alcohol beverage tastings. These recommendations are included in both options.
• Tastings will be limite 2 p see (to minimize chance of
violations).
• Tasting samples will b ed )arltainyerscilitate visual monitoring of
product samples).
• The Authority could deny the application for a tastings permit if the applicant had a
previous liquor code violation in the preceding two years or if he or she could not
demonstrate an ability to conduct the tastings in accordance with the law and without
creating a safety risk to the neighborhood.
May 16, 2006 -3- Item No. 30
• The applicant will need to provide a schedule of the anticipated tastings and a log of
completed tastings upon renewal (to ensure that licensees do not exceed allowable days
and hours).
• Enforcement will be com nt o PY
to limited staff and financial
resources.
Questions from Work Session
At the Council Work Session, staff was asked to respond to the following questions:
• What do micro-breweries think of the tasting ordinance?
Comments from three local breweries ranged from neutral to supportive. Anheuser-
Busch will submit its comments at a later time, and those comments will be provided to
Council under separate cover as soon as they are received.
• How is it that micro-breweries can offer tastings now?
The term "micro-breweries" is not defined by the State Liquor Code.
The State has given cal jun ictio tVotel-rest
ho to grant, deny, and disciplinary
actions against retail uor Jac ses .e., ant, tavern, retail liquor stores,
brew-pubs, etc.). Brew-pu s are a owed to tastings since they are licensed for `on-
premise' consumption, meaning patrons can consume alcohol inside the brew-pub (i.e.,
CooperSmith's, C.B. & Potts, and Conor ONeills). Retail liquor stores hold "off-
premise" licenses, which do not permit consumption within a store unless there is a
tastings permit in place.
According to the State Liquor Authority, beer manufacturers are allowed to have "sales
rooms", allowing them to conduct tastings, serve and sell food, sell general merchandise
and beverages to be taken off the premises by the consumer.
• Why did Larimer County not include spirituous liquors?
According to Gael Cookman, Staff Services Manager, the Larimer County Board of
Commissioners optedCigh
as "" e me for two reasons. First, it
was concerned with th of c to o pi o s liquors as opposed to beer and
wine, and, second, no terest ai licen es requested spirituous liquors be
included - the licenseet n and w' only.
The Board of Commissioners stated it may consider adding spirituous liquors to its
tastings ordinance in the future.
May 16, 2006 -4- Item No. 30
• What licensing fees does the State allow?
C.R.S. §12-47-505 (4)(a) states that each application for a license must be accompanied
by an application fee ( it ount determined by the local
licensing authority to ver 1 an sYlicee
attendant to processing the
applications. Applicat fees sep to oms, which are also determined
by the State. These fees id i Fo
Application Fees New License $500.00 maximum allowed by State
Transfer of Ownership $400.00 (maximum allowed by State is
$500 - staff could not justify a transfer
application fee of$500
Renewal Fee $50.00 maximum allowed by State
Under separate cover, the City Attorney's Office will be responding to additional questions
regarding cost recovery and fees and taxes.
ATTACHMENTS
1. State statute authorizi tastin
2. Matrix of other jurisdi ons feg d li tPons
3. work session summary
ORDINANCE NO. 087, 2006
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 3 OF THE CODE OF THE
CITY OF FORT COLLINS TO ALLOW ALCOHOL BEVERAGE TASTINGS
WHEREAS,in 2004,the Colorado General Assembly adopted and the governor signed into
law House Bill 04-1021 (now codified at C.R.S. §12-47-301(10),permitting local jurisdictions to
allow retail liquor stores and liquor-licensed drugstores to conduct sample tastings of liquor and malt
and vinous (beer and wine) beverages in their establishments without charging for such samples;
and
WHEREAS, House Bill 04-1021 requires that an ordinance be enacted by any local
jurisdiction that wishes to allow such beer and wine tastings; and
WHEREAS, the City Council desires to adopt an ordinance authorizing the beer and wine
tasting of malt and vinous beverages (beer and wine) at retail liquor stores and liquor-licensed
drugstores within the City subject to certain limitations.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the Code of the City of Fort Collins is hereby amended by the addition
of a new Section 3-87 which shall read in its entirety as follows:
Sec. 3-87. Beer and wine tastings authorized; permit required.
(a) Beer and wine tastings on the licensed premises of a retail liquor store
licensee or of a liquor-licensed drugstore licensee are authorized to be conducted
within the city in accordance with C.R.S. Section 12-47-301(10) and subject to the
provisions of this Chapter.
ter.P
(b) The Authority is authorized to issue beer and wine tasting permits in
accordance with the requirements of this Chapter.
(c) It shall be unlawful for any person to conduct beer and wine tastings within
the city without having first received a permit issued in accordance with this Section.
(d) Retail liquor store licensees and liquor-licensed drugstore licensees desiring
to conduct tastings shall submit a tasting permit application to the City Clerk
accompanied by a one hundred and fifty dollar($150.) application fee.
(e) The Authority shall establish the procedures for obtaining a beer and wine
tasting permit which procedures shall include, without limitation, conducting a
noticed public hearing before the Authority at which hearing the applicant must
establish that the applicant is able to conduct beer and wine tastings without violating
I,
the provisions of this Chapter. The Authority may deny the application and any
renewal application if it finds that the applicant has violated any provision of the
liquor code, rules and regulations, or the City Code pertaining to alcohol sales and
service in the previous two (2) years, or if the applicant has not established the
ability to conduct beer and wine tastings in accordance with the provisions of this
Chapter, or if the Authority finds that the proposed beer and wine tastings would
create a public safety risk to the neighborhood. The notice required for the public
hearing shall be the posted and published notices required by C.R.S. Section 12-47-
311.
(f) The forms for the beer and wine tasting permit application, the renewal
application, and the beer and wine tasting permit shall be those prescribed by the
Authority. These forms shall include,without limitation,a schedule of the dates and
times of the beer and wine tastings to be conducted on the licensed premises and by
whom during the term of the permit. The licensee may deviate from the approved
schedule provided that: (1) the licensee gives the City Clerk and the city's liquor
enforcement officer seven (7) days prior written notice of such deviation; and (2)
such deviation does not violate any provision of this Chapter, the Colorado Liquor
Code, Code of Regulations or any other state law or municipal ordinance or
regulation. An applicant for a beer and wine tasting permit must also include with
the filing of the initial and any renewal application, and keep current with the City
Clerk's office at all times, written proof that the licensee and each employee of the
licensee who will be conducting the beer and wine tastings have completed a server
training program for beer and wine tastings that meets the standards required by state
law.
(g) Renewal of beer and wine tasting permits shall be concurrent with the
renewal of licenses for retail liquor stores and liquor-licensed drugstores. A
licensee's initial beer and wine tasting permit shall expire on the same date as the
date of the licensee's retail liquor store or liquor-licensed drugstore license expires.
The initial beer and wine tasting permit application fee shall not be prorated if the
permit expires in less than a year. Beer and wine tasting permit renewal forms shall
be submitted to the City Clerk accompanied by a fifty dollar($50.)renewal fee. The
City Council may change this fee by resolution.
(h) Beer and wine tasting permits shall be conspicuously and prominently
posted by the licensee on the licensed premises at all times during business hours.
(i) A beer and wine tasting permit shall only be issued to a retail liquor store
or a liquor-licensed drugstore licensee whose license is valid,not subject to a current
or pending enforcement action by the city or the state and in full force and effect.
Section 2. That the Code of the City of Fort Collins is hereby amended by the addition
of a new Section 3-88 which shall read in its entirety as follows:
Sec. 3-88. Limitations on beer and wine tastings.
(a) Beer and wine tastings within the city shall be subject to the following
limitations:
(1) Beer and wine tastings shall be conducted only by a person who has
completed a server training program that meets the standards established
by the liquor enforcement division of the Colorado Department of Revenue
and who is either a retail liquor store licensee or a liquor-licensed drugstore
licensee, or an employee of a licensee, and only on a licensee's licensed
premises;
(2) The alcohol used in beer and wine tastings shall be purchased through a
licensed wholesaler, licensed brew pub, or winery licensed pursuant to
C.R.S. Section 12-47-403 at a cost that is not less than the laid-in cost for
such alcohol;
(3) The size of an individual alcohol sample shall not exceed one(1)ounce of
malt or vinous liquor;
(4) Beer and wine tastings shall not exceed a total of five(5)hours in duration
per day, which need not be consecutive;
(5) Beer and wine tastings shall be conducted only during the operating hours
in which the licensee on whose premises the beer and wine tasting occur
is permitted to sell alcohol beverages,and in no case earlier than 11:00 a.m.
or later than 7:00 p.m.
(6) The licensee shall prohibit patrons from leaving the licensed premises with
an unconsumed sample;
(7) The licensee shall promptly remove all open and unconsumed beverage
samples from the licensed premises or shall destroy the samples
immediately following the completion of the beer and wine tastings;
(8) The licensee shall not serve a person who is under twenty-one (21) years
of age or who is visibly intoxicated;
(9) The licensee shall not serve more than four (4) individual samples to a
patron during a beer and wine tasting;
3
(10) The alcohol samples used in the beer and wine tastings shall be served in
clear, open containers and shall be provided to a patron free of charge;
(11) Beer and wine tastings may occur on no more than two (2) of the six (6)
days from a Monday to the following Saturday,not to exceed fifty-two(52)
days per year;
(12) The licensee shall maintain on the licensed premises a log of all beer and
wine tastings on forms proscribed by the Authority to be submitted to the
City Clerk each year with the beer and wine tasting permit renewal
application and during all business hours the log shall be subject to
inspection by city and state officials authorized to enforce the Colorado
Liquor Code and/or the Fort Collins City Code upon request; and
(13) No manufacturer of spirituous or vinous liquor shall induce a licensee
through free goods or financial or in-kind assistance to favor the
manufacturer's products being sampled at a beer and wine tasting and the
licensee shall bear the financial and all other responsibility for a beer and
wine tasting.
Section 3. That the Code of the City of Fort Collins is hereby amended by the addition
of a new Section 3-89 which shall read in its entirety as follows:
Sec. 3-89. Violations.
(a) A violation of a limitation specified in §§ 3-87 and 3-88 or in C.R.S.
Section 12-47-301(10)by a retail liquor store or a liquor-licensed drugstore licensee,
whether by the licensee's employees,agents or otherwise, shall be the responsibility
of the retail liquor store or liquor-licensed drugstore licensee who is conducting the
beer and wine tasting.
(b) Retail liquor store and liquor-licensed drugstore licensees conducting abeer
and wine tasting shall be subject to the same revocation,suspension and enforcement
provisions as otherwise apply to those licensees by the Authority. The Authority
shall conduct a hearing with regard to any violation of § 3-87 through § 3-88 in
accordance with this Code,the Authority's rules,regulations and C.R.S. Section 12-
47-601.
(c) Nothing in this Chapter shall affect the ability of a Colorado winery
licensed pursuant to C.R.S. Section 12-47-402 or 12-47-403 to conduct a beer and
wine tasting pursuant to the authority of C.R.S. Section 12-47-402(2) or 12-47-
403(e).
4
of the City of Fort Collins is hereby
Section 4. That Section 3 74(a) of the Code y y
amended to add a new Subsection (10) to read as follows:
Sec. 3-74. Application Fees.
(a) Application fees shall be payable to the city as follows:
Fees
(10) Beer and wine tastings permit...............................................150.
Introduced, considered favorably on first reading, and ordered published this 16th day of
May, A.D. 2006, and to be presented for final passage on the 6th day of June, A.D. 2006.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading on the 6th day of June, A.D. 2006.
Mayor
ATTEST:
City Clerk
5