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HomeMy WebLinkAbout1999 Ordinance No. 033. ' • • • ORDINANCE NO . ~g SERIES OF 1999 BY AUTHORITY COUNCIL BILL NO. 39 INTRODUCED BY COUNCIL MEMBER BRADSHAW AN ORDINANCE SUBMITTING TO A VOTE OF THE REGISTERED ELECTORS OF THE CITY OF ENGLEWOOD AT THE NEXT SCHEDULED GENERAL MUNICIPAL ELECTION A QUESTION AUTHORIZING ADDITIONAL CATEGORIES OF THE PREVIOUSLY ESTABLISHED OCCUPATIONAL TAX ON LIQUOR LICENSED BUSINESSES. WHEREAS , the City Council of Englewood, Colorado has determined that it is necessary to establish an annual Occupational Tax for the following classifications of Liquor Licenses within the City : Brew Pub License , Optional Premises License , Optional Premises with Hotel/Restaura nt License , and Mini Bar Permit; a nd WHEREAS , the Englewood City Council finds that such modification of the Englewood Municipal Code is necessary because in 1987 the Code was amended by changing the term "Occupational Fee" to "Occupational Tax" due to the limits placed on municipalities by the State in assessing certain fees; and WHEREAS , Article X, Section 20 of the Colorado Constitution requires that the City have voter approval prior to a new Occupational Tax; and WHEREAS , the City of Englewood and the Arapahoe County Clerk and Recorder are in agreement that procedures may be implemented to coordinate this issue ; NOW, THEREFORE , BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD , COLORADO , AS FOLLOWS : Section 1. Pursuant t o the provisions oflaw the City of Englewood hereby submits for a vote of the registered electors of the City of Englewood at the 1999 General Municipal Election the following issue and the ballots for said election shall ca rry the following designation which shall be the submission clause : SHALL THE CITY OF ENGLEWOOD TAXES BE INCREASED $10,000 (FIRST FULL FISCAL YEAR DOLLAR INCREASE) ANNUALLY BY IMPOSING OCCUPATIONAL TAXES (WHICH TAXES SHALL ONLY BE IMPOSED ON LICENSE HOLDERS) ON THE FOLLOWING CLASSIFICATIONS OF LIQUOR LICENSES IN THE CITY OF ENGLEWOOD: BREW PUB LICENSE ($750 .00 PER YEAR), OPTIONAL PREMISES LICENSE ($650 .00 PER YEAR), OPTIONAL PREMISES LICENSE WITH HOTEL/RESTAURANT LICENSE ($100.00 PER YEAR), AND MINI BAR PERMIT ($450 .00 PER YEAR). YES NO -1- 10 b ii Section 2. Each elector voting at said election and desirous of voting shall indicate his choice by depressing the appropriate counter of the voting machine or by the appropriate marking upon paper ballots where used. Section 3 . The proper officials of the City of Englewood shall give notice of said general municipal election, such notice shall be published in the manner and for the length of time required by law, and the ballots cast at such election shall be canvassed and the result ascertained, determined, and certified as required by law . Section 4. If the majority of the registered electors voting at said election vote yes for said proposition, the City Council shall at the earliest practical and lawful time adopt an ordinance conforming to the affirmative vote of the majority of said registered electors voting at said election. Section 5 If any section, paragraph, clause , or other portion of this ordinance is for any reason held to be invalid or unenforceable, the invalidity or unenforceability shall not affect any of the remaining portions of this ordinance. Introduced, read in full , and passed on first reading on the 7th day of June, 1999. Published as a Bill for an Ordinance on the 11th day of June, 1999. Read by title and passed on final reading on the 21st day of June, 1999. Published by title as Ordinance No . d.J, Series of 1999, on the 25th day of June, 1999 . Loucrishia A. Ellis, City Clerk I, Loucrishia A. Ellis, City Clerk of the City of Englewood, C that the above and foregoing is a true co-rgg the Ordina ce and published by title as Ordinance No. Series of 1 -2- o ado , hereby certify sed on fj.nal reading • • • .. -.. • • • COUNCIL COMMUNICATION Date Agenda Item Subject Proposed ordinance setting a ballot question I regarding Liquor Occupation June 7, 1999 11 a ii Taxes Initiated By Staff Source Frank Gryglewicz, Director of Financial SeNices Liquor Licensing Authority and Brenda Castle, Deputy City Clerk COUNCIL GOAL AND PREVIOUS COUNCIL ACTION Council reviewed this recommendation at the February 8, 1999 Study Session . RECOMMENDED ACTION Council approval of a bill for an ordinance submitting to a vote of the registered electors of the City of Englewood, at the next scheduled General Municipal Election, November 2, 1999, a TABOR question establishing an annual Occupational Tax for each of the following classifications of license: Brew Pub License Optional Premises License Optional Premises with H/R license Mini Bar Permit $750.00 $650.00 $100.00 for each optional premise $450.00 The other category, Bed and Breakfast Permit, would not be included in the ballot question . As discussed at the February 8 , 1999 Study Session, no Occupational Tax is recommended for this category, since alcohol is not sold, but seNed only to guests of the Bed and Breakfast for four hours a day. The four separate categories of licenses and permits are explained in the attachments. If the question is approved by the voters , council bills will be presented to Council for consideration , amending the Englewood Municipal Code 1985 to include the Occupational Taxes for each new classification and establishing an Optional Premises License, as requ ired by State Statute. BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED Under TABOR, approval of a new Occupational Tax must be obtained from the voters. In 1987, the term "Occupational Fee" was changed to "Occupational Tax" (via City of Englewood Ordinance 19, Series of 1987). This was deemed advantageous, at the time, due to the limits placed on municipalities by the State in assessing certain fees . FINANCIAL IMPACT Each of the fees listed above would be received yearly from each licensee holding that type of license. Currently, the City realizes approximately $27,700.00 a year in liquor occupational taxes . LIST OF ATTACHMENTS Description of four categories of license/permit Proposed Council Bill No. 39 BREW PUB LICENSE This is a relatively new classificat ion of liquor license, created in 1996 through House Bill 1168. Previously, Brew Pubs were allowed by the State when a licensee obtained certain multiple licenses, including a Hotel and Restaurant License and a Manufacturer's License. The new Brew Pub License simplified the process by requiring only one license, and requires approval through the local liquor licensing authority prior to consideration by the State. The application process is the same as for other class ifications of liquor licenses . Under the new statutes , Brew Pubs can be described as follows: a) May manufacture not more than 1.86 million gallons of malt liquor on-premises each year. b) May self-distribute up to 300 ,000 gallons of their own product per year. c) May sell the ir own product to off-premises consumers during the same hours as retail liquor stores , 8:00 a.m. to midnight, every day except Sundays and Christmas. d) May sell their own product and any other malt, vinous and spirituous liquor by the drink on-premises from 7:00 a.m. to 2:00 a.m. 365 days a year. e) Must sell full meals , equaling at least 15 % of their gross income, from 8:00 am. to 8:00 p.m . OPTIONAL PREMISES There are two types of "optional premises" under the Colorado Liquor Code. The first is the Optional Premises License.:. This is a separate license , just like any other liquor license (e.g. tavern, beer and .. . . lt • wine , etc.). The second is the "optional premises" which can be added to an existing hotel and • restaurant liquor license. The first type , Optional Premises License .. can be issued only to license an outdoor sports and recreat ional facility . Golf courses , tennis clubs , and outdoor swimming pools are facilities that would be eligible for this type of license. Because the Optional Premises License is a separate and distinct license, a person hold ing this type of license can not also hold a tavern , hotel/restaurant, liquor store, or any other class of liquor license. A person could , however , hold an Optional Premises License and , at the same time, hold one or more 3.2 beer licenses for other locations . The Optional Premises License allows the sale and service of repeal beer (6% or higher alcohol content), wine, and spirits within the licensed area. No food service is required, although the Optional Premises licensee may offer food if he /she desires . Hours of sale and service are the same as for taverns and on-premises liquor licenses: 7 :00 a.m. to 2:00 a.m., 365 days a year. The State and City license fees are the same as those charged for a Hotel and Restaurant Liquor License . No Optional Premises License can be issued unless the local licensing authority (i.e. city or county) has enacted special legislation to permit optional premises. Such legislation usually will specify such basic requirements as the permissible sizes of the licensed areas , the types of facilities eligible for the license, and other control measures. The second type of "optional premises" is that which can be added to an existing Hotel /Restaurant License. This species of optional premises is not a separate license; it merely serves to add outdoor facilities to the existing license. The Hotel/Restaurant License is extended to cover the optional premises in addition to the areas already licensed under the Hotel/Restaurant License. Therefore , there are no changes in hours of service , food service , or any of the existing requirements provided by the current license . The licensed premises merely is expanded in size when a Hotel/Restaurant licensee adds optional premises. • • 4 • • • .. In addition to the license fee for the Hotel/Restaurant license, the State charges $75.00 per year for each additional optional premise. Cities, however, are not allowed to charge a license fee in addition to the city Hotel/Restaurant license fee. Even adding optional premises to an existing Hotel/Restaurant License requires special legislation by the local licensing authority. This is the same prerequisite, mentioned above, applicable also to the Optional Premises License. MINI BAR PERMIT The Mini Bar Permit allows a hotel to sell alcohol beverages in sealed containers, at any time, by means of a mini bar located in hotel guest rooms, to adult, registered guests of the hotel, for consumption in such guest rooms. A hotel is not required to obtain a Mini Bar Permit for the rooms located on the same licensed premises for which the Hotel/Restaurant License is issued. However, §12-47-411 (3)(c) CRS, allows a hotel, with a Hotel/Restaurant License , to enter into a contract with a nearby lodging facility for the purpose of authorizing such lodging facility to sell malt, vinous and spirituous liquors by means of mini bars, if such lodging facility and hotel share common ownership and are located within one thousand feet of each other. BED AND BREAKFAST PERMIT Establishments holding a Bed and Breakfast Permit must adhere to the following: a) Not more that 20 sleeping rooms b) Complimentary alcohol beverages may be served to overnight guests only c) Must provide at least one meal a day at no extra cost d) Must des ignate hours in which complimentary alcohol will be served (not to exceed 4 hours a day) e) May not sell alcohol beverages Currently, Bed and Breakfasts would only be allowed in the B-1 and B-2 zone districts in Englewood, which is not where you would typically find them. It is our understanding that the 1999 zoning ordinance may contain a specific allowance for Bed and Breakfasts in the R-3 zone district.