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02-1434` � p �"' � ':, s ; ' �L:i� '� �� � � S..% t e`v 1 M_ Presented By Referred To RESOLUTION CITY OF SAINT PAUL, MINNESOTA �\ Committee: Aate 1 WHEREAS, adverse action was initiated against the licenses held by Walter and Gloria 2 Herbst, d/b/a Herbst Food Mazket for the premises located at 779 Raymond Avenue in Saint Paul 3 (License ID# 19021) by the Office of LIEP for the a violation of sale of tobacco products to a 4 minor on July 26, 2001 and the Office of LIEP recommended revocation of the license based upon the behauior of the lacensees at the time of the violarion; and 10 11 12 13 14 15 16 17 WHEREAS, Licensee requested a hearing before an Administrative Law Judge, and a hearing was held on December 17, 2001 before Administrative Law Judge Beverly Jones Heydinger, who issued Findings of Fact, Conclusions and Recommendations dated 7anuary 8, 2002, in which she determined that the Office of LIEP had sustained its burden of showing substantial and compeiling reasons for deviating from the presumptive penalty for a first time violation, but had not sustained the burden of showing that revocation was appropriate ; and WHEREAS, the Report of the ALJ recommended that the City Council suspend the license for a period of thirty days; now, therefare be it RESOLVBD, that the licenses held by Walter and Gloria Herbst, d/b/a Herbst Food 18 Market for the premises located at 779 Raymond Avenue) aze hereby suspended for a period of 19 thirty days, for the violation of sale of tobacco products to a minor on July 26, 2001, together 20 with the strong and aggressive reaction of the licenses, including shouting, screaming, pounding 21 on the counter and following the inspectar out of the market. Said suspension shall begin at 22 12:01 a.m. on Wednesday, March 13, 2002 and shall continue until 11:59 pm. on Thursday, 23 April 11, 2002. 24 25 FURTHER RESOLVED, that the findings of fact and conclusions of law contained in the 26 ALJ Report in this case dated January 8, 2002 are adopted as the written findings and conclusion 27 of the Council in this matter. 28 Council File # p a, —►t} 3 Green Sheet # a.0 O'.�.y r3 F i t j � � � !�� ' '�{ ( 2-r r!:��= Tiiis�I�esolution is based on the record of the proceedings before the ALJ, including the Dal�'� y� 3 hearing on December 17, 2001, the documents and e�ibits introduced therein, the findings of 4 fact and conclusions of law of the ALJ as referenced above and the deliberations of the Council 5 in open session at the public hearing on February 6, 2002 . 6 7 A copy of this Resolution, as adopted, shall be sent by first class mail to the 8 Adininistrative Law 7udge and to Todd Young, attorney for Licensees. 9 DEPARTMENT/OFFICElCOUNCII.: DATE INITIATED GREEN SHEET NO.' ZOOZ/�S LIEP February 13, 2002 ' �a.-1y3 " CONTACT PERSON & PHONEc / / ATE INTr7AI/DATE VuginiaPalmer(266-8710) � � 1 7 � PARTMEN"I DIIL CITY COUNCII. MUST BE ON COUNCII. AGEr`DA BY (DATE) �SIGN CITY ATTORNEY a CITY CLERK February , 2002 consent N[m�ER �''�cui, s�zv nm. _�r,r�cuu. sExv�nccrc � � FOR _h1AI OR (OR ASST.) CNIL SERVICE COMMLSSION ROL7TII3G ORDER TOTAL # OF SIGNAT[IRE PAGES _(CLIP ALL LOCATIONS FOR SIGNATURE) acnorr �QUes�n: Adverse action against the Cigarette/Tobacco license held by Walter and Gloria Herbst, d/b/a Herbst Food Market, located at 779 Raymond Avenue RECOMMENDATTONS: Approve (A) or Reject (R) PERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING QUESTIONS: PL,ANNING COMMISSION 1. Has this person/ficm ever worked under a contract for this departrnent? Cffi COMMITI'EE Yu No CNII. SERVICE COMMISSION 2. Hzs this personifian ever been a ciTy employee? Yes No 3. Dces this pecsodfimt possess a skill not nocmally pussessed by any cumnt ciTy employee? Yes No Explain all yes answers on separate sheet and attach to green sheet INTTIATING PROBLEM, ISSUE, OPPORTIJNITY (Who, What, When, Where, Why): Walter and Gloria Herbst, d/b!a Herbst Food Market, failed 7uly 26, 2001 cigarette compliance check violently confronting inspector and compliance checker. Administrative law judge recommended 30 day suspension of license. " �- ���,p� �pn4�?C ��� � �� ADVANTAGESIFAPPROVED: Council action necessary to enfarce penalty for license violarion. DLSADVANTAGESIFAPPROVED: None. DISADVANTAGES IF NOT APPROVED: No penalty will be unposed for license violation. TOTAL AMOUNT OF TRANSACTION: $ COST/REVENUE BUDGETED: FUNDING SOURCE: ACTNTTY NUMBER: FINANCIAL INFORMATION: (EXPLAIN) I:WSERS�PANGBORN�greensM1ett-cigarene wmpl B 9+pd OFFICE OF THE CITY ATTORNEY Q Z..1 �{,3 Manuel J. Cervantes, City Attorney 4y CITY OF SAINT PAUL CivilDivision Randy C. Ke11y, Mayor 40D City Hall Telephorse: 651 266-871 D ISWutKel7oggBlvd. Facsimile:657198-5619 SaintPaul, Minnesota7�/O2 i `h(C'R ��` January 14, 2002 ��� NOTICE OF COUNCIL HEARING ; �.;,_; `�, _� �'�� .�,-.:W Todd P. Young Todd Young Law Firm 21?4 North Snelling Avenue Roseville, Minnesota 55113 RE: Cigarette/Tobacco License held by Walter and Gloria Herbst, d/b/a Herbst Food Market for the premises located at 779 I2aymond Avenue in Saint Paul License ID #: 19021 Dear Mr. Young: Please take notice that a hearing on the report of the Administrative Law Judge concerning the above-mentioned v3olation has been scheduled for 5:30 p.m., Wednesday, February 6, 2002, in the City Council Chambers, Tturd Floor, Saint Paul City Ha11 and Ramsey County Courthouse. You have the opportunity to file exceptions to the report with the City Clerk at any time during normal business hours. You may aiso present oral or written argument to the council at the Hearing. No new evidence will be received or testimony taken at this hearing. The Councii will base its decision on the record of the proceedings before the Aiiministrative Law Judge and on the azguments made and exceptions filed, but may d�part from the recommendations of such Judge as pezmitted by law in the exercise of its judgement and dascretion. Sincerely, �'/���L� Virginia D. Palmer Assistant City Attorney � cc: Nancy Anderson, Assistant Council Secretary, 310 City Hall Christine Rozek, LIEP Melissa Mathews, Community Organizer, St. Anthony Park Community Council, 890 Cromwell Ave., St. Paui, MN SSll4-1599 03..-F�17 15-6020-i4569-3 STATE OF MINNESOTA ` OFFfCE OF ADMINlSTRATIVE HEARlNGS FOR THE SAINT PAUL CITY COUNCIL In Re fhe CigarettelTobacco License FINDINGS OF FACT, Held by Walter and Gloria Herbst d/bla CONCLUSIONS OF LAW Herbsf Faod Markef AND RECdMMENDATION This matter was heard by Administrative Law Judge Beverly Jones Heydinger, commencing at 1:00 p.m., December 17, 2001, at the St. Paui City Hall, Room 40-A, 15 West Kellogg Boulevard, Saint Paul, Minnesota. The hearing was held pursuant to Notice of Hearing dated November 1, 2001. Virginia D. Palmer, Assistant City Attorney, 400 City Hall, 15 West Kellogg Bivd., Saint Paul, Minnesota 55102, appeared on behalf of the City's Office of Licensing, Inspections and Environmentai Protection (LIEP). Todd P. Young, Attorney at Law, 2174 North Snel{ing Avenue, Roseville, MN 55113 appeared on behalf of Walter and Gloria Herbst, the Licensees. The record cfosed on December 17, 2001, at the close ofithe hearing. NOTICE This report is a recommendation, not a final decision. The St. Paul City Councii will make the final decision after a review of the record and may adopt, reject or modify these Findings of Fact, Conclusions, and Recommendation.� Pursuanf to Minn. Stat. § 14.61 (2000), the City Council shall not make a fina! dec+sion until this Report has been made avaitabie to the parties for at least ten days. The parties may file exceptions to this Report and the City Council must consider the exceptions in making a final decision. A copy of the City Council's decision must be served on the partfes and the Administrative Law Judge by first class mail? Parties should contact Fred Owusu, City Clerk, City of St. Paut, 170 City Hall, 15 West Kellogg Blvd., Sainf Paul, Minnesota 55102, to ascertain the procedure for filing excepfions or presenting argument. STATEMENT OF THE ISSUES The issues presented at this hearing were: Do extenuating circumstances justify deviating from the penalty mafrix for a first cigarette/tobacco violation? t St. Paui Legislative Code § 310.05 (o-l). 2 Minn. Stat. § 14.62, subd. 1(2QQQ). 81�{y3 FiNDiNGS OF FACT 1. �he parties have stipulated that the Licensees vio(ated St. Paul Legislative Code §324.07. Walter Herbst and his sister, �loria Herbst, own and operate the Herbst Food Market at 778 Raymond Avenue, St. Paul. They hoid a license from the Cify to se(l cigarettes and tobacco. On July 26, 2001, Walter Herbsf sold cigarettes to an underage purchaser who was conducting a compliance check for LIEP. This was a first ofiFense for the Licensees. 2. The City has a penalty mafrix for imposing sanctions for violations of the cigarette/tobacco license. According to the matrix, a fine of $200.00 is imposed for a first offense. 3. LIEP asserts that there are ex,tenuatiny ;,ircumstances that jus;;F� deviating from the penalty matrix to revoke the license. 4. The Licensees appealed that recommendation and requested a hearing 4 5. On the date of the sale, the decoy, a young woman, age 16, entered Herbst Market and attempted to purchase cigarettes. Walter Herbst asked for her identification, she could not produce it, and she left the store. She reiurned in a few minutes and showed Mr. Herbst her identification. Although Mr. Herbst checked the photo, he failed to note that the young woman was not 18 years old and sold her the cigarettes. She completed the purchase and left the store. 6. Mr. Herbst was concerned thaf he may have made a mistake and approached his sister with a calendar to ask for heip checking fhe date. 7. Margaret Fuller, the City's license and permit inspector, returned to the market with the cigarettes and a clipboard. Her identiFication tag was hanging around her neck. She saw Ms. Herbst at the counfer waiting on another customer, and waited briefly. She saw Mr. Herbst, told him of the sale, and asked for his identification, as she ordinarily does when an improper saie has been made. 6 8. Mr. Herbst became very upset, tried to show the identification in his wallet, and Ms. Herbst became involved, screaming and attempting to cover up the identification. She pounded her fist on the counter. Ms. Fufler asked both Mr. and Ms. Herbst to caim down, but they were very agitated and loud. Mr. Herbst tried to take back the cigarettes, and Ms. Herbst attempted to take Ms. 3 St. Pau( Legislative Code §32411 (b). 4 Ex. 3. 5 Testimony of Watter Her6st, Gloria Herbst. 6 Test. of Mazgaret Fuller. 2 ol-�y3 Fuller's identification. For severa! minutes fhe Herbsts yelfed and would not calm down. Accordingly, Ms. Fuller left the market. As she did so, Ms. Herbst grabbed her arm and walked her out the door. Ms. Fufler walked around the rear of her car, which had been parked close to the front of the market, and Ms. Herbst folfowed her fo the rear of the car. As Ms. Fuiler got into the car, fhe decoy turned to iook at her. At the same time Mr. Herbst began hitfing the window of the car on the passenger side of the car, which startled and frightened the decoy.� 9. Ms. Fuller drove around the corner, Both the decoy and Ms. Fuller were quite shaken up by the hierbsts' loud screaming and anger. Ms. Fufier telephoned to her supervisor, Christine Rozek, and then called for the assistance of a Sf. Paul pofice officer. O�cer pougias Juntinen responded to the call for assistance, and Ms. Fuiler expfained to him what had occurred. She asked him to check the market fo be sure that everything was alright. 10. Officer Juntinen attempted to talk to the Herbsts, but they continued to be very upset, agitated and screaming. The Herbsts shouted about their struggles with their business, including robberies, loss of business to large supermarkets, and their fear that they were being "set up� by the inspector. Although the officer was in the market for about 10 minutes, the Herbsts did not caim down. He iold them that he was going to inspect the car to determine if any damage had been done. He left the store, inspected the car, and did not see any damage. At no time did O�cer Juntinen feel personai{y threatened by either Mr. or Ms. Herbst. Because there was no evidence of a physical assault or damage fo property, O�cer Juntinen had no reason to believe thaf a crime had been committed, and therefore he did not file a police report. He did telf Ms. Fuller that she should note in her report that an o�cer had been called, since that might be relevant to the licensing viofation. 11. Ms. Rozek told Roger Curtis, Director of LIEP, about the incident and that Ms. Fufler was very upset. Mr. Gurtis immediately drove to the market to check on Ms. Fulier and the decoy. When he arrived, the police officer was in the store, and Mr. Curtis coufd hear a lot of screaming from the store. Atier the poiice ofr�cer came out, the officer, Mr. Curtis and Ms. Fufier went around the corner to discuss the situation. Mr. Curtis attempted to introduce himself to Ms. Herbst, but she was very agitated and aggressive, and he saw that there was no possibility of a calm conversation at that fime. Ms. Herbst did not physicaliy threaten Mr. Curtis.� ' Test� of M. Fu(Ier. 8 Test. of M. Fnller; Douglas Juntinen. ' Test. of D. Juntinen. 10 Test. of Roger Curtis. 3 0�.-143 12. Mr. Herbst is 78 years old and about 5'2" tall.'� He is fraii and neroous. Ms. Herbst is aiso in her 70's and is abouf 4'9" fali. She is very loud and aggressive when she speaks, and sounds angry and somewhat menacing, even when she denies that she is angry. Neither pose any physical risk to others. Ms. Herbst's manner could frighten someone who is unfamifiar with her. 13. Any Finding of Fact more properly fermed as a Conclusion is hereby adopted as a Concfusion. CONCLUSIONS 1. The Administrafive Law Judge and the Saint Paul City Council have jurisdiction in this case. 2. The Licensees received timely and praper notice of the hearing and the City complied with ali relevant substantive and procedural requirements of statute and rule. 3. The City has authority to deny, suspend or revoke a iicense and to impose penaities for violation of applicable statutes and ru(es.� The Legislative Code includes presumptive penalties for violations. The presumptive penaity for a first violation is a$200.00 fine. Deviations from the penalty matrix are authorized when there are "substantial and compeiling reasons."�� 4. The City has the burden of proving by a preponderance of the evidence that there are substantial and compelling reasons that justify deviating from the penaity matrix. 5. The City proved by a preponderance of the evidence thaf the extenuating circumstances }ustify departure from the penalty matrix but did not prove that the circumstances warrant revocation of the license. Based upon the foregoing Conciusions, the Administrative Law Judge ` makes the foliowing: " Test. of Walter Herbst. ' Test. of Gloria Herbst. ".Saint Paul Legislative Code §§ 310.05, 376.16; Minn. Stat. § 14.55. 14 See Minn. Stat. § 14.57 —14.61; Saint Paul Legislative Code § 310.05. 15 Saint Paul Legislative Code § 310.06. 16 Saint Paul Legislative Code § 324.1 I(b}. �� Saint Paul Legislative Code §324.11 (a). o� - ►y3 RECOMMENDATION � IT IS HEREBY RECOMMENDED_ thaf the City of Saint Paul deviate from the penalry matrix and impose a 30-day suspension of the license. Dated this S day of January, 2002. � � ,. /I '. ../ �. .. �_ _ . i . : j �� � � . - ' � - . !� i1 Reported: Tape-recorded (four tapes) MEMORANDUM The parties have agreed that the Licensees did sell cigarettes to an underage buyer. This is a violation of the Saint Paui Legislative Code, and the presumptive penalty fior such an offense is a$200.00 fine: The evidence shows that the Licensees became very agitated, upset and loud when Ms. Fufier returned to the store to notify them of the violation. Although the Licensees are elderly, they are fiercely proud and protective of their business and each other. The+r business is struggling; they have no employees and few saies. Mr. Herbst is in poor health. The circumstances warrant a 30-day suspension of the license because of the strong, aggressive reaction by the Licensees, including shouting, screaming, pounding on the counter and fotlowing the inspector out ofi the market. Deviation from the matrix is further supported by the testimony of the LIEP Director and the police officer that the Herbsts continued screaming and remained very emotionaf after the inspector left the market. Ms. Herbst in particular had trouble regaini�g her composure. License inspectors and the police should not be subjected to such a degree of verbal abuse and threatening language. A 30-day suspension should assure that the Licensees are aware that such a strong reaction wili not be tolerafed, and that a subsequent offense couid lead to revocation of their iicense. Suspension will convey the importance of cooperating with the inspectors. Ms. Herbst denies that she yelled and screamed at the inspector and the pofice officer. However, her voice got very foud and angry during her testimony, and she is a formidable individuai, despite her age and size. Ms. Fuller and the decoy were frightened by the Licensees' over-reaction to the violation. Ms. Fuller s os.-+y3 was very shaken up by ths strong, fierce, loud reaction from Ms. Herbst, especially when Ms. Herbst tried to grab Ms. Fuller's identification and foliowed her out of the store to her parked car. The decoy was faken by surp�ise when Mr: Herbst came to the passenger window and began knocking or pounding. The surprise, as much as the actual force of his striking the window, frightened her. Given fhe ticensees' age, their very long history operating a neighborhood business without causing prob{ems to fhe police or the inspectors, and no prior vio(ations, there are not compelling reasons at present to revoke fhe license. Neither Walter nor Gloria Herbst appears capable of harming an inspector. It is likefy that an inspector who is aware of their reaction in fhis instance could comp{ete anofher compliance buy. B.J.H. � 4` � p �"' � ':, s ; ' �L:i� '� �� � � S..% t e`v 1 M_ Presented By Referred To RESOLUTION CITY OF SAINT PAUL, MINNESOTA �\ Committee: Aate 1 WHEREAS, adverse action was initiated against the licenses held by Walter and Gloria 2 Herbst, d/b/a Herbst Food Mazket for the premises located at 779 Raymond Avenue in Saint Paul 3 (License ID# 19021) by the Office of LIEP for the a violation of sale of tobacco products to a 4 minor on July 26, 2001 and the Office of LIEP recommended revocation of the license based upon the behauior of the lacensees at the time of the violarion; and 10 11 12 13 14 15 16 17 WHEREAS, Licensee requested a hearing before an Administrative Law Judge, and a hearing was held on December 17, 2001 before Administrative Law Judge Beverly Jones Heydinger, who issued Findings of Fact, Conclusions and Recommendations dated 7anuary 8, 2002, in which she determined that the Office of LIEP had sustained its burden of showing substantial and compeiling reasons for deviating from the presumptive penalty for a first time violation, but had not sustained the burden of showing that revocation was appropriate ; and WHEREAS, the Report of the ALJ recommended that the City Council suspend the license for a period of thirty days; now, therefare be it RESOLVBD, that the licenses held by Walter and Gloria Herbst, d/b/a Herbst Food 18 Market for the premises located at 779 Raymond Avenue) aze hereby suspended for a period of 19 thirty days, for the violation of sale of tobacco products to a minor on July 26, 2001, together 20 with the strong and aggressive reaction of the licenses, including shouting, screaming, pounding 21 on the counter and following the inspectar out of the market. Said suspension shall begin at 22 12:01 a.m. on Wednesday, March 13, 2002 and shall continue until 11:59 pm. on Thursday, 23 April 11, 2002. 24 25 FURTHER RESOLVED, that the findings of fact and conclusions of law contained in the 26 ALJ Report in this case dated January 8, 2002 are adopted as the written findings and conclusion 27 of the Council in this matter. 28 Council File # p a, —►t} 3 Green Sheet # a.0 O'.�.y r3 F i t j � � � !�� ' '�{ ( 2-r r!:��= Tiiis�I�esolution is based on the record of the proceedings before the ALJ, including the Dal�'� y� 3 hearing on December 17, 2001, the documents and e�ibits introduced therein, the findings of 4 fact and conclusions of law of the ALJ as referenced above and the deliberations of the Council 5 in open session at the public hearing on February 6, 2002 . 6 7 A copy of this Resolution, as adopted, shall be sent by first class mail to the 8 Adininistrative Law 7udge and to Todd Young, attorney for Licensees. 9 DEPARTMENT/OFFICElCOUNCII.: DATE INITIATED GREEN SHEET NO.' ZOOZ/�S LIEP February 13, 2002 ' �a.-1y3 " CONTACT PERSON & PHONEc / / ATE INTr7AI/DATE VuginiaPalmer(266-8710) � � 1 7 � PARTMEN"I DIIL CITY COUNCII. MUST BE ON COUNCII. AGEr`DA BY (DATE) �SIGN CITY ATTORNEY a CITY CLERK February , 2002 consent N[m�ER �''�cui, s�zv nm. _�r,r�cuu. sExv�nccrc � � FOR _h1AI OR (OR ASST.) CNIL SERVICE COMMLSSION ROL7TII3G ORDER TOTAL # OF SIGNAT[IRE PAGES _(CLIP ALL LOCATIONS FOR SIGNATURE) acnorr �QUes�n: Adverse action against the Cigarette/Tobacco license held by Walter and Gloria Herbst, d/b/a Herbst Food Market, located at 779 Raymond Avenue RECOMMENDATTONS: Approve (A) or Reject (R) PERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING QUESTIONS: PL,ANNING COMMISSION 1. Has this person/ficm ever worked under a contract for this departrnent? Cffi COMMITI'EE Yu No CNII. SERVICE COMMISSION 2. Hzs this personifian ever been a ciTy employee? Yes No 3. Dces this pecsodfimt possess a skill not nocmally pussessed by any cumnt ciTy employee? Yes No Explain all yes answers on separate sheet and attach to green sheet INTTIATING PROBLEM, ISSUE, OPPORTIJNITY (Who, What, When, Where, Why): Walter and Gloria Herbst, d/b!a Herbst Food Market, failed 7uly 26, 2001 cigarette compliance check violently confronting inspector and compliance checker. Administrative law judge recommended 30 day suspension of license. " �- ���,p� �pn4�?C ��� � �� ADVANTAGESIFAPPROVED: Council action necessary to enfarce penalty for license violarion. DLSADVANTAGESIFAPPROVED: None. DISADVANTAGES IF NOT APPROVED: No penalty will be unposed for license violation. TOTAL AMOUNT OF TRANSACTION: $ COST/REVENUE BUDGETED: FUNDING SOURCE: ACTNTTY NUMBER: FINANCIAL INFORMATION: (EXPLAIN) I:WSERS�PANGBORN�greensM1ett-cigarene wmpl B 9+pd OFFICE OF THE CITY ATTORNEY Q Z..1 �{,3 Manuel J. Cervantes, City Attorney 4y CITY OF SAINT PAUL CivilDivision Randy C. Ke11y, Mayor 40D City Hall Telephorse: 651 266-871 D ISWutKel7oggBlvd. Facsimile:657198-5619 SaintPaul, Minnesota7�/O2 i `h(C'R ��` January 14, 2002 ��� NOTICE OF COUNCIL HEARING ; �.;,_; `�, _� �'�� .�,-.:W Todd P. Young Todd Young Law Firm 21?4 North Snelling Avenue Roseville, Minnesota 55113 RE: Cigarette/Tobacco License held by Walter and Gloria Herbst, d/b/a Herbst Food Market for the premises located at 779 I2aymond Avenue in Saint Paul License ID #: 19021 Dear Mr. Young: Please take notice that a hearing on the report of the Administrative Law Judge concerning the above-mentioned v3olation has been scheduled for 5:30 p.m., Wednesday, February 6, 2002, in the City Council Chambers, Tturd Floor, Saint Paul City Ha11 and Ramsey County Courthouse. You have the opportunity to file exceptions to the report with the City Clerk at any time during normal business hours. You may aiso present oral or written argument to the council at the Hearing. No new evidence will be received or testimony taken at this hearing. The Councii will base its decision on the record of the proceedings before the Aiiministrative Law Judge and on the azguments made and exceptions filed, but may d�part from the recommendations of such Judge as pezmitted by law in the exercise of its judgement and dascretion. Sincerely, �'/���L� Virginia D. Palmer Assistant City Attorney � cc: Nancy Anderson, Assistant Council Secretary, 310 City Hall Christine Rozek, LIEP Melissa Mathews, Community Organizer, St. Anthony Park Community Council, 890 Cromwell Ave., St. Paui, MN SSll4-1599 03..-F�17 15-6020-i4569-3 STATE OF MINNESOTA ` OFFfCE OF ADMINlSTRATIVE HEARlNGS FOR THE SAINT PAUL CITY COUNCIL In Re fhe CigarettelTobacco License FINDINGS OF FACT, Held by Walter and Gloria Herbst d/bla CONCLUSIONS OF LAW Herbsf Faod Markef AND RECdMMENDATION This matter was heard by Administrative Law Judge Beverly Jones Heydinger, commencing at 1:00 p.m., December 17, 2001, at the St. Paui City Hall, Room 40-A, 15 West Kellogg Boulevard, Saint Paul, Minnesota. The hearing was held pursuant to Notice of Hearing dated November 1, 2001. Virginia D. Palmer, Assistant City Attorney, 400 City Hall, 15 West Kellogg Bivd., Saint Paul, Minnesota 55102, appeared on behalf of the City's Office of Licensing, Inspections and Environmentai Protection (LIEP). Todd P. Young, Attorney at Law, 2174 North Snel{ing Avenue, Roseville, MN 55113 appeared on behalf of Walter and Gloria Herbst, the Licensees. The record cfosed on December 17, 2001, at the close ofithe hearing. NOTICE This report is a recommendation, not a final decision. The St. Paul City Councii will make the final decision after a review of the record and may adopt, reject or modify these Findings of Fact, Conclusions, and Recommendation.� Pursuanf to Minn. Stat. § 14.61 (2000), the City Council shall not make a fina! dec+sion until this Report has been made avaitabie to the parties for at least ten days. The parties may file exceptions to this Report and the City Council must consider the exceptions in making a final decision. A copy of the City Council's decision must be served on the partfes and the Administrative Law Judge by first class mail? Parties should contact Fred Owusu, City Clerk, City of St. Paut, 170 City Hall, 15 West Kellogg Blvd., Sainf Paul, Minnesota 55102, to ascertain the procedure for filing excepfions or presenting argument. STATEMENT OF THE ISSUES The issues presented at this hearing were: Do extenuating circumstances justify deviating from the penalty mafrix for a first cigarette/tobacco violation? t St. Paui Legislative Code § 310.05 (o-l). 2 Minn. Stat. § 14.62, subd. 1(2QQQ). 81�{y3 FiNDiNGS OF FACT 1. �he parties have stipulated that the Licensees vio(ated St. Paul Legislative Code §324.07. Walter Herbst and his sister, �loria Herbst, own and operate the Herbst Food Market at 778 Raymond Avenue, St. Paul. They hoid a license from the Cify to se(l cigarettes and tobacco. On July 26, 2001, Walter Herbsf sold cigarettes to an underage purchaser who was conducting a compliance check for LIEP. This was a first ofiFense for the Licensees. 2. The City has a penalty mafrix for imposing sanctions for violations of the cigarette/tobacco license. According to the matrix, a fine of $200.00 is imposed for a first offense. 3. LIEP asserts that there are ex,tenuatiny ;,ircumstances that jus;;F� deviating from the penalty matrix to revoke the license. 4. The Licensees appealed that recommendation and requested a hearing 4 5. On the date of the sale, the decoy, a young woman, age 16, entered Herbst Market and attempted to purchase cigarettes. Walter Herbst asked for her identification, she could not produce it, and she left the store. She reiurned in a few minutes and showed Mr. Herbst her identification. Although Mr. Herbst checked the photo, he failed to note that the young woman was not 18 years old and sold her the cigarettes. She completed the purchase and left the store. 6. Mr. Herbst was concerned thaf he may have made a mistake and approached his sister with a calendar to ask for heip checking fhe date. 7. Margaret Fuller, the City's license and permit inspector, returned to the market with the cigarettes and a clipboard. Her identiFication tag was hanging around her neck. She saw Ms. Herbst at the counfer waiting on another customer, and waited briefly. She saw Mr. Herbst, told him of the sale, and asked for his identification, as she ordinarily does when an improper saie has been made. 6 8. Mr. Herbst became very upset, tried to show the identification in his wallet, and Ms. Herbst became involved, screaming and attempting to cover up the identification. She pounded her fist on the counter. Ms. Fufler asked both Mr. and Ms. Herbst to caim down, but they were very agitated and loud. Mr. Herbst tried to take back the cigarettes, and Ms. Herbst attempted to take Ms. 3 St. Pau( Legislative Code §32411 (b). 4 Ex. 3. 5 Testimony of Watter Her6st, Gloria Herbst. 6 Test. of Mazgaret Fuller. 2 ol-�y3 Fuller's identification. For severa! minutes fhe Herbsts yelfed and would not calm down. Accordingly, Ms. Fuller left the market. As she did so, Ms. Herbst grabbed her arm and walked her out the door. Ms. Fufler walked around the rear of her car, which had been parked close to the front of the market, and Ms. Herbst folfowed her fo the rear of the car. As Ms. Fuiler got into the car, fhe decoy turned to iook at her. At the same time Mr. Herbst began hitfing the window of the car on the passenger side of the car, which startled and frightened the decoy.� 9. Ms. Fuller drove around the corner, Both the decoy and Ms. Fuller were quite shaken up by the hierbsts' loud screaming and anger. Ms. Fufier telephoned to her supervisor, Christine Rozek, and then called for the assistance of a Sf. Paul pofice officer. O�cer pougias Juntinen responded to the call for assistance, and Ms. Fuiler expfained to him what had occurred. She asked him to check the market fo be sure that everything was alright. 10. Officer Juntinen attempted to talk to the Herbsts, but they continued to be very upset, agitated and screaming. The Herbsts shouted about their struggles with their business, including robberies, loss of business to large supermarkets, and their fear that they were being "set up� by the inspector. Although the officer was in the market for about 10 minutes, the Herbsts did not caim down. He iold them that he was going to inspect the car to determine if any damage had been done. He left the store, inspected the car, and did not see any damage. At no time did O�cer Juntinen feel personai{y threatened by either Mr. or Ms. Herbst. Because there was no evidence of a physical assault or damage fo property, O�cer Juntinen had no reason to believe thaf a crime had been committed, and therefore he did not file a police report. He did telf Ms. Fuller that she should note in her report that an o�cer had been called, since that might be relevant to the licensing viofation. 11. Ms. Rozek told Roger Curtis, Director of LIEP, about the incident and that Ms. Fufler was very upset. Mr. Gurtis immediately drove to the market to check on Ms. Fulier and the decoy. When he arrived, the police officer was in the store, and Mr. Curtis coufd hear a lot of screaming from the store. Atier the poiice ofr�cer came out, the officer, Mr. Curtis and Ms. Fufier went around the corner to discuss the situation. Mr. Curtis attempted to introduce himself to Ms. Herbst, but she was very agitated and aggressive, and he saw that there was no possibility of a calm conversation at that fime. Ms. Herbst did not physicaliy threaten Mr. Curtis.� ' Test� of M. Fu(Ier. 8 Test. of M. Fnller; Douglas Juntinen. ' Test. of D. Juntinen. 10 Test. of Roger Curtis. 3 0�.-143 12. Mr. Herbst is 78 years old and about 5'2" tall.'� He is fraii and neroous. Ms. Herbst is aiso in her 70's and is abouf 4'9" fali. She is very loud and aggressive when she speaks, and sounds angry and somewhat menacing, even when she denies that she is angry. Neither pose any physical risk to others. Ms. Herbst's manner could frighten someone who is unfamifiar with her. 13. Any Finding of Fact more properly fermed as a Conclusion is hereby adopted as a Concfusion. CONCLUSIONS 1. The Administrafive Law Judge and the Saint Paul City Council have jurisdiction in this case. 2. The Licensees received timely and praper notice of the hearing and the City complied with ali relevant substantive and procedural requirements of statute and rule. 3. The City has authority to deny, suspend or revoke a iicense and to impose penaities for violation of applicable statutes and ru(es.� The Legislative Code includes presumptive penalties for violations. The presumptive penaity for a first violation is a$200.00 fine. Deviations from the penalty matrix are authorized when there are "substantial and compeiling reasons."�� 4. The City has the burden of proving by a preponderance of the evidence that there are substantial and compelling reasons that justify deviating from the penaity matrix. 5. The City proved by a preponderance of the evidence thaf the extenuating circumstances }ustify departure from the penalty matrix but did not prove that the circumstances warrant revocation of the license. Based upon the foregoing Conciusions, the Administrative Law Judge ` makes the foliowing: " Test. of Walter Herbst. ' Test. of Gloria Herbst. ".Saint Paul Legislative Code §§ 310.05, 376.16; Minn. Stat. § 14.55. 14 See Minn. Stat. § 14.57 —14.61; Saint Paul Legislative Code § 310.05. 15 Saint Paul Legislative Code § 310.06. 16 Saint Paul Legislative Code § 324.1 I(b}. �� Saint Paul Legislative Code §324.11 (a). o� - ►y3 RECOMMENDATION � IT IS HEREBY RECOMMENDED_ thaf the City of Saint Paul deviate from the penalry matrix and impose a 30-day suspension of the license. Dated this S day of January, 2002. � � ,. /I '. ../ �. .. �_ _ . i . : j �� � � . - ' � - . !� i1 Reported: Tape-recorded (four tapes) MEMORANDUM The parties have agreed that the Licensees did sell cigarettes to an underage buyer. This is a violation of the Saint Paui Legislative Code, and the presumptive penalty fior such an offense is a$200.00 fine: The evidence shows that the Licensees became very agitated, upset and loud when Ms. Fufier returned to the store to notify them of the violation. Although the Licensees are elderly, they are fiercely proud and protective of their business and each other. The+r business is struggling; they have no employees and few saies. Mr. Herbst is in poor health. The circumstances warrant a 30-day suspension of the license because of the strong, aggressive reaction by the Licensees, including shouting, screaming, pounding on the counter and fotlowing the inspector out ofi the market. Deviation from the matrix is further supported by the testimony of the LIEP Director and the police officer that the Herbsts continued screaming and remained very emotionaf after the inspector left the market. Ms. Herbst in particular had trouble regaini�g her composure. License inspectors and the police should not be subjected to such a degree of verbal abuse and threatening language. A 30-day suspension should assure that the Licensees are aware that such a strong reaction wili not be tolerafed, and that a subsequent offense couid lead to revocation of their iicense. Suspension will convey the importance of cooperating with the inspectors. Ms. Herbst denies that she yelled and screamed at the inspector and the pofice officer. However, her voice got very foud and angry during her testimony, and she is a formidable individuai, despite her age and size. Ms. Fuller and the decoy were frightened by the Licensees' over-reaction to the violation. Ms. Fuller s os.-+y3 was very shaken up by ths strong, fierce, loud reaction from Ms. Herbst, especially when Ms. Herbst tried to grab Ms. Fuller's identification and foliowed her out of the store to her parked car. The decoy was faken by surp�ise when Mr: Herbst came to the passenger window and began knocking or pounding. The surprise, as much as the actual force of his striking the window, frightened her. Given fhe ticensees' age, their very long history operating a neighborhood business without causing prob{ems to fhe police or the inspectors, and no prior vio(ations, there are not compelling reasons at present to revoke fhe license. Neither Walter nor Gloria Herbst appears capable of harming an inspector. It is likefy that an inspector who is aware of their reaction in fhis instance could comp{ete anofher compliance buy. B.J.H. �