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VI-2 MEMORANDUM To: From: Date: Re: Mayor Werner & City Councilmembers Melanie Mesko Lee, Administrative Assistant/City Clerk May 28, 2003 Request to Order Public Hearing Council Action Requested: Order a public hearing for July 7, 2003 to consider amending on-sale liquor license fees. Backeround Information: In 2002, the City Council held public hearings to amend chapter 3 of City ordinances with regard to liquor licenses and their corresponding fees. As a part of the ordinance amendment, Council approved setting fees by resolution. All licensees were notified of the proposed changes and were provided opportunity to comment. At the public hearing in May, 2002, the City Council approved increasing the on-sale liquor license fee by $500 in 2002 and $500, plus an annual cost of living adjustment, each year following until the annual license fee for an on-sale liquor license reached $4,000. These annual increases were to be approved by City Council resolution on an annual basis. Following this action, all licensees were sent a copy of the resolution as approved by the Council, notifying them of the license fee increases and Council's intent for future fee increases. In April 2003, the City Council approved another resolution increasing the on-sale liquor license by $500, plus a 3% cost of living adjustment, for a total 2003 increase of$515. When renewal information was sent out to all licensees, a copy of the 2003 fee resolution was included and the increase was noted on the renewal letter that was sent out. State statute mandates that a public hearing must be held for any increase in a liquor license fee. Therefore, to meet the procedural hearing requirements mandated by state law, staff is requesting that a public hearing notice be ordered for the July 7, 2003 City Council meeting. Staff will provide a 30-,day notification to all current licensees of the public hearing and invite public comment. On July 7, the Council will be requested to reiterate its action of April 7, 2003, increasing the annual on-sale liquor license by $500. Staff is recommending that the annual cost of living adjustment of $15 be removed from the fee. Therefore, if approved, the 2003 liquor license fee would be $3,400. The City bills these licenses twice yearly; any overpayments would be corrected at the time of the December 2003 billing. If you have any questions, please let me know.