HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 05/20/2014 - FIRST READING OF ORDINANCE NO. 077, 2014, AMENDINGAgenda Item 12
Item # 12 Page 1
AGENDA ITEM SUMMARY May 20, 2014
City Council
STAFF
Aimee Jensen, Deputy City Clerk
SUBJECT
First Reading of Ordinance No. 077, 2014, Amending Chapter 3 of The City Code to Allow Spirituous Liquor
Tastings and to Increase the Number of Days Tastings are Permitted.
EXECUTIVE SUMMARY
The purpose of this item is to amend the City Code to allow for spirituous (liquor) tastings, similar to what is
currently allowed for beer and wine. This amendment will also extend the number of days tastings are
permitted up to the maximum 104 tasting events per year.
STAFF RECOMMENDATION
Staff recommends adoption of this Ordinance on First Reading.
BACKGROUND / DISCUSSION
This request was initiated by a downtown business owner who would like to offer spirituous tastings in his
establishment. In 2004, the Colorado General Assembly adopted, and the Governor signed into law, House
Bill 04-1021 permitting local jurisdictions to allow retail liquor stores and liquor-licensed drugstores to conduct
sample tastings of alcohol beverages (beer, wine and liquor) in their establishments without charging for such
samples. This bill also required that, if a local government desired to allow such tastings in its jurisdiction, the
local governmental body must do so by ordinance.
At that time, City staff reviewed tastings ordinances from other jurisdictions. Council reviewed information
regarding alcohol beverage tastings at the April 25, 2006 work session and directed staff to present two
options of a tastings ordinance. At the May 16, 2006 Council meeting, Council adopted the option to limit retail
liquor store license tastings to beer and wine only. The adopted ordinance also limited the number of days a
retail liquor store can conduct tastings to 52 days a year (instead of 104 days a year, as permitted by State
statute).
In April, 2014, staff conducted an informal survey of retail liquor stores within the city limits to determine their
interest in the proposed change of adding spirituous liquors to the tastings ordinance. Of the nine liquor stores
who hold a tasting permit, eight of the nine stores were enthusiastically supportive; the remaining liquor store
owner was ambivalent.
Agenda Item 12
Item # 12 Page 2
Staff also contacted several other jurisdictions for local limitations and fees on tasting permits. Below is a
representation of that survey.
Municipality Permit Beer and
Wine Tastings
Permit Spirituous
Liquor Tastings
Permit 104
days
New Permit
Fee
Renewal Fee
Fort Collins Yes No No 150 50
Loveland Yes Yes No 150 25
Greeley Yes No Yes 100 25
Longmont Yes Yes No 125 125
Berthoud Yes Yes Yes 150 150
County Yes No No 100 100
Arvada Yes Yes Yes 50 50
Alamosa Yes Yes No 100 25
Cherry Hills Yes Yes Yes 100 50
Boulder Yes Yes Yes 50 50
Police Services have no concerns with allowing spirituous tastings in Fort Collins, as it is allowed in most other
parts of the state.
ATTACHMENTS
1. Agenda Item Summary May 16, 2006 (w/o attachments) (PDF)
2. Ordinance No. 087, 2006 (PDF)
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ORDINANCE NO. 077, 2014
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 3 OF THE CODE OF THE CITY OF FORT COLLINS
TO ALLOW SPIRITUOUS LIQUOR TASTINGS AND TO INCREASE
THE NUMBER OF DAYS TASTINGS ARE PERMITTED
WHEREAS, Section 12-47-301(10), C.R.S., authorizes local jurisdictions to allow retail
liquor stores and liquor-licensed drugstores to conduct sample tastings of malt, vinous or
spirituous beverages in their establishments without charging for such samples; and
WHEREAS, Section 12-47-301(10)(c)(XI), C.R.S. authorizes tastings to occur on no
more than four of the six days from a Monday to the following Saturday, not to exceed 104 days
per year; and
WHEREAS, on June 6, 2006, City Council adopted on second reading Ordinance No.
087, 2006, allowing beer and wine tastings only, and restricting the number of such tastings to
two of the six days from a Monday to the following Saturday, not to exceed 52 days per year;
and
WHEREAS, there is interest in the regulated community in a Code change to allow
tastings of spirituous liquors and to increase the number of days tastings are permitted to match
the maximum number allowed by state law; and
WHEREAS, City staff believes that allowing tastings of spirituous liquors and increasing
the number of days such tasting is allowed, subject to the restrictions set forth in state law and
City Code, will not adversely affect the health, safety or welfare of the public; and
WHEREAS, the City Council has determined that these proposed amendments to the
City Code are desirable and in the best interests of the City.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That Section 3-74(a)(10) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 3-74. Application fees.
(a) Application fees shall be payable to the City as follows:
Application Fee
(1) New license (including change of
class of license)
$500.
(2) Transfer of ownership or change of
location of license
400.
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(3) Late renewal 500.
(4) Temporary permit (to allow
continued operation during period
that an application for transfer of
ownership is pending)
100.
(5) Renewal of license 50.
(6) Manager registration 75.
(7) Special events permit (per day) 50.
(8) Modification of premises 75.
(9) Change in corporate or limited
liability company structure, per
each required background
investigation
100.
(10) Beer and wine tTastings permit 150.
(11) Art gallery permit 103.75
. . .
Section 2. That Section 3-87 of the Code of the City of Fort Collins is hereby amended
to read as follows:
Sec. 3-87. Beer and wine Malt, vinous, and spirituous tastings authorized;
permit required.
(a) Beer and wine tTastings 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 Section 12-47-301(10), C.R.S., and subject to the provisions of this
Chapter.
(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-fifty-dollar 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 the provisions of this
Chapter. The Authority may deny the application and any renewal application if it finds
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that the applicant has violated any provision of the Colorado Liquor Code, rules and
regulationsColorado Code of Regulations, or the City this Code pertaining to alcohol
sales and service in the previous two (2) years, 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 as required by Section 12-47-311, C.R.S.
(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, Colorado Code of Regulations or any other state
lawrequirement 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 tTasting permit renewal forms shall be submitted to the City Clerk., accompanied
by a fifty-dollar renewal fee. The City Council may change this fee by resolution.
(h) Beer and wine tTasting 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 3. That Section 3-88 the Code of the City of Fort Collins is hereby amended
to read as follows:
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Sec. 3-88. Limitations on beer and wine tastings.
Beer and wine tTastings within the City shall be subject to the following limitations:
(1) Beer and wine tTastings 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 Section 12-47-403, C.R.S.,
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, or one-half (1/2) ounce of spirituous liquor;
(4) Beer and wine tTastings shall not exceed a total of five (5) hours in duration per
day, which need not be consecutive;
(5) Beer and wine tTastings shall be conducted only during the operating hours in
which the licensee on whose premises the beer and wine tastings 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;
(10) The alcohol samples used in the beer and wine a tastings shall be served in clear,
open containers and shall be provided to a patron free of charge;
(11) Beer and wine tTastings may occur on no more than two (2) four (4) of the six (6)
days from a Monday to the following Saturday, not to exceed fifty-two (52) one hundred
four (104) days per year;
(12) The licensee shall maintain on the licensed premises a log of all beer and wine
tastings on forms proscribed prescribed by the Authority to be submitted to the City Clerk
each year with the beer and wine tasting permit renewal application, and during all
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business hours the log shall be subject to inspection by city and state officials authorized
to enforce the Colorado Liquor Code and/or this 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 4. That Section 3-89 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 3-89. Violations.
(a) A violation of a limitation specified in §§ 3-87 and 3-88 or a permit issued
thereunder or in Section 12-47-301(10), C.R.S., 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 a beer 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 Section 12-47-601, C.R.S.
(c) Nothing in this Chapter shall affect the ability of a Colorado winery licensed
pursuant to Section 12-47-402 or 12-47-403, C.R.S., to conduct a beer and wine tasting
pursuant to the authority of Section 12-47-402(2) or 12-47-403(e), C.R.S.
Introduced, considered favorably on first reading, and ordered published this 20th day of
May, A.D. 2014, and to be presented for final passage on the 3rd day of June, A.D. 2014.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
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Passed and adopted on final reading on the 3rd day of June, A.D. 2014.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk