04-1180Council File # ' [ l
Green Sheet # 3 o OZ �
Presented By
Referred To
Committee: Date
WHEREAS, adverse action was initiated against the licenses held by M Reaney, Inc.
d(b!a Reaney's Baz for the premises ]ocated at 870 Payne Ave. in Saint Paul (License ID#
0016230) by Notice of Violation dated October 15, 2004; and
5 WHEREAS, the Office of License, Inspections and Environmental Protection
6 recommended adverse action against the license based upon two police reports, one from
7 December 20, 2003 alleging sale of alcohol to two obviously intoxicated persons and another
8 from January 9, 2004 alleging sale of alcohol to two underage persons; and
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WHEREAS, the applicant sought and received a hearing before an Administrative L,aw
Judge, which was held on July 21, 2004; and
WHEREAS, the Administrative Laau 7udge issued Findings of Faci, Conclusions and a
Recommendation for penalry dated September 10, 2004 in which he found that there was a sale
of alcohol to an obviously intoxicated person on December 20, 2003 and that there were two
sales of aicohol to underage persons on 7uly 21, 2004; and
WFiEREAS, the Office of License, Inspections and Environmental Protection
recommended a penalty of a$2,000 fine and a thirty day suspension of the licenses held by
licensee, with twenty of the days stayed for a period of 18 months, based upon the fact that there
was a prior adverse action before the Council on December 17, 2003 for which the Council
imposed a$500 fine for failure to maintain order and sobriety in the establishment; the multiple
violations; their closeness in rime to the Council action on the previous violation, indicating that
the Licensee had not taken responsibility for changing management practices and the nature of
the violations which al] involved serious violations of the liquor laws; and
WHEREAS, the Report of the AIJ recommended a penalty of a$1,500 fine and a
suspension of ten days, stayed for a period of 18 months, but indicated that there were facts
which would justify an upward departure and that LIEP's recommendation was not unreasonable;
and
WHEREAS, the applicant was notified of a hearing before the Saint Paul City Council on
December 1, 2004 to consider the report of the Administrative I,aw Judge and advised of his
right to make objections to the Findings of Fact, Conclusions and Recommendation, and
appeared with his attorney to argue the appropriate penalty; and
WI�TZEAS, the public hearing was closed on December 1, and the matter was laid over
to December 8, 2004 for Council to discuss and impose a penalty; now, therefore be it
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA
2yA
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RESOLVED, that a fine of $1,500 is hereby imposed on the ]icenses held by M Reaney,
Inc. d/b/a Reaney's Bar for the premises located at 870 Payne Ave, in Saint Paul (License ID
#0016230) and a thirty day suspension of the licenses is imposed, with fifteen of the thirty days
being stayed for a period of eighteen months on the condition that there be no further violalions
in that period of rime. The fine is payable to the Office of LIEP within thirty days following the
passage and approval of this resolution. The license suspension shall be effective at 12:01 a.m.
on Wednesday, December 29, 2004 and shall continue in effect until Friday, January 7, 2005 at
11:59 p.m.
FCJFtTHER RESOLVED, that the findings of fact and conclusions of law contained in the
AIJ Repozt in this case dated September 10, 2004 are adopted as the written findings and
conclusion of the Council in this matter.
This Resolution is based on the record of the proceedings before the AL.J, including the
hearing on July 21, 2004, the documents and exhibits introduced therein, the findings of fact and
conclusions of law of the AL.J as referenced above, the arguments made to the Council in open
session at the public hearing on December 1, 2004 and the deliberations of Council on
December 8, 2004.
A copy of this Resolution, as adopted, shall be sent by first class mail to the
Administrative Law Judge and to the Attorney for the Licensee.
Requested by Department of:
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Form Approved by City Attorney '�
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By: v
Approved by Mayor for Suhmission to Council
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� Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet �
Depar6nenUOificelcouncl Date In'rtiafed;
( cA -�,tyA,��. ,�� � Green Sheet NO: 3024622
� � � I DeoaAment SentTOPerson InitiaV(Jate
ContactPerson & Phone:
v�ginia Palmer 0 ' A orne
266�8710 p,�,q�yn 1 iCitvAtto Deu rtme tDi�ecto �
Must Be on Council Agenda by (Date�: Number Z onn
For
Routing 3 ' Cirk
Order 4
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Total �k of Signature Pages �(Clip All Locations for Signature)
Action Requested:
Memorializing City Council ac&on taken December 8, 2004 imposing adverse acrion against all licenses held by M. Reaney, Inc., d/b/a
Reaney's Baz, 870 Payne Avenue.
Recommendations: Approee (A) or Reject (R): Personal Serviee Contracts MustMswer the Following Questions:
Planning Commission 1, Has this persoNTirtn e�er woriced under a contract for this department?
CIB Committee Yes No
CiHI Service Commission 2. Has this persoNfirtn e�er been a ciry employee?
Yes No
3. Does this persorJfirtn possess a skill not normally possessed by any
current city employee?
Yes No
Explain all yes answers on separate sheet and attach to green sheet
InitiaGng Problem, Issues, OppoRunity (YYho, What, When, Where, Why): ,
� Adva�NaAeslFApproved:
I Disadvanfa5�es tFApproved: �
Disadvantapes If NotApproved:
7ofa1 AmouM of CosHRevenue Budgeted:
Transaction:
Funding Saurce: ActivitY Number.
Financial InfortnaEon:
(Explain)
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December 90, 2004 9:03 AM Page 1
D�-11�0
OFFICE OF THE CITY ATTORNEY
ManuelJ. Cervnntes, CiryAttorney
CITY OF SAINT PAiTL Civil Division
Randy G Kelly, Mayor 400 C7ry HaII Telephone: 6A 266-87l0
ISWestKel[oggBlvd. Facsimile:651298-56/9
SaintPaul, Minrtesota 55lOZ
September 15, 2004 �'�° � � �
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NOTICE OF COUNCII. HEARING
Frederick 7. Goetz
Goetz & Eckland, PA
43 Main Street SE, Suite 400
Minneapolis, MN 55414
RE: In the Matter of all Licenses held by M. Reaney, Inc., d/b/a Reaney's Bar for the
premises located at 870 Payne Avenue in Saint Paul
OAH Docket No. 6-602Q-15907-3
Dear Mr. Goetz:
Please take notice that a hearing on the report of the Administrative Law 3udge
conceming the above-mentioned application has been scheduled for 5:30 p.m., Wednesday,
December 1, 2004, in the City Council Chambers, Third Floor, Saint Paul City Hall 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 also present oral or written azgument to the council at
the Hearing. No new evidence will be received or testimony taken at this hearing. The Council
will base its decision on the record of the proceedings before the Administrative Law Judge and
on the arguments made and exceptions filed, but may depart from the recommendations of such
7udge as permitted by law in the exercise of its judgement and discretion.
Sincerely,
�/ C���
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Virginia D. Palmer
Assistant City Attomey
cc: Diane Nordstrom, Office of Administrative Hearings, 100 Washington Squaze, Suite
1700, Minneapolis, NIN 55401
Mary Erickson, Assistant Council Secretary, 310 City Hall
Christine Rozek, Deputy Director of LIEP
Payne Phalen District 5 Planning Council, 1014 Payne Avenue, Saint Paul, MN 55101
AA-ADA-EEO Employer
o�l - � r go
Don Luna, City Clerk
City of St. Paul
170 City Hall
15 West Kellogg Blvd.
St. Paul, MN 55102
STATE OF MINNESOTA
OF�ICE OF ADMINISTRATIVE HEARINGS
100 Washington Square, Suite 1700
100 Washington Avenue South
Minneapolis, Minnesota 55401-2138
TELEPHONE:(612)341-7600
TTY: (612) 341-7346
September 10, 2004
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Re: In the Matter of Ail Licenses He1d by M. Reaney, inc.
d/b/a Reaney's Bar for the Premises Located at 870 Payne Ave. in
Sf. Paul; License ID #0016230
OAH Docket No. 6-6020-15907-3
Dear Mr. Luna:
Enclosed herewith and served upon you by mail is the Administrative Law
Judge's Findings of Fact, Conclusions, and Recommendation in the above-entitled
matter. Also enclosed is the official record, with the exception of the tape recording of
the hearing. If you would like a copy of the tapes, please contact our office in writing or
by telephone at 612-341-7448. Our file in this matter is now being closed.
Sincerely,
j , / / �, _ / ,
ALLAN W. KLEIN
Administrative Law Judge
AW :nh
Encl.
cc
Virginia D. Palmer
Fredrick J. Goetz
Telephone: (612) 341-7609
Providing Vmpartiaf Hearings for Government and Citizens
An Equal Opportunity Employer
Administrative Law Division & Administrative Services
Facsimile: (612) 349-2665
Workers' Compensation Hearings Division
Facsimile: (612) 349-2691
Wortcers' Compensation Settlemeni Division
Facsimile: (612) 349-2634
o�- i � $D
6-6020-15907-3
STATE OF MINNESOTA
OFFICE OF ADMINISTRATIVE HEARINGS
FOR THE COUNC4L OF THE CITY OF ST. PAUL
In the Matter of All Licenses Held by M.
Reaney, inc. d/b/a Reaney's Bar for the
Premises Located at 870 Payne Ave. in
St. Paul; license 1D #0016230
FINDINGS OF FACT,
CONCLUSIONS AND
RECOMMENDATION
A hearing in this matter was held on July 21, 2004 at the St. Paul City Hall
before Allan W. Kiein, Administrative Law Judge.
Appearing on behalf of the Office of License, Inspections and
Environmentaf Protection for the City of St. Paul (hereinafter "LfEP") was Virginia
D. Pa{mer, Assistant City Attorney, 400 City Hal4, 15 West Ke{logg Boulevard, St.
Paul, MN 55102.
Appearing on behalf of M. Reaney, Inc. d/b/a Reaney's Bar (hereinafter
"Reaney's") was Fredrick J. Goetz, of the firm of Goetz & Eckland, P.A., 43 Main
Street SE, Suite 400, Minneapolis, MN 55414.
The hearing took less than a day, and the record closed on August 31,
2004, upon receipt of the final argument from counsel.
NOTICE
This report is a recommendation, not a final decision. The St. Paul City
Council will make the final decision after a review of the record. The City Council
may adopt, reject or modify the Findings of Fact, Conclusions, and
Recommendation herein. Under Section 310.05(c-1) of the City's Legislative
Code, the City Council wili provide Reaney's an opportunity to present oral or
written argument to it before it takes final action. Reaney's should contact the St.
Paul City Cierk to ascertain the procedure fior presenting argument to the council.
STATEMENT OF ISSUE
Shouid disciplinary action be taken against Reaney's licenses because of
two alleged violations of sfatute?
Based upon all of the proceedings herein, the Administrative Law Judge
makes the following:
o�- c t ��
FINDiNGS OF FACT
1. Reaney's Bar is {ocated at 870 Payne Avenue, at the corner of
Payne and Welis Street, on the east side of St. Paul.
2. The corporation M. Reaney, Inc. hoids a number of licenses from the
City, including an on-sale {iquor license, an an-sale Sunday liquor license, and
oif-sa{e ma4t liquor {icense, a gambling license, and a Class C restaurant license.
3. On December 20, 2003, which was the Saturday before Christmas,
St. Paul Police Officers J. Reginek and M. Dunaski were doing routine patrol
work on Payne Avenue. Part of their normal activities is to make "pro-active
police visits" to a variety of business establishments, including bars. There are
15 bars within their patrol area, and typicaily tiley wil! walk through a bar looking
for underage drinking, obvious(y intoxicated persons, marijuana, illegal gambling,
locked dooss, and similar violations. On that Saturday night, at approximately
8:45 p.m., they entered Reaney's Bar.
4. Reaney's is a relatively long, thin room. The entrance is at one end,
with the bar running down the right hand side and tables on the left. At the far
end of the bar from the entrance, the bar forms an "L" shape. When Officers
Reginek and Dunaski entered the bar, they sat down near the front door and
looked around. They observed a ta6le with three people sitting at it. The table
held numerous (at least a dozen) glasses and beer cans. One of the three
people was a woman, later identified as Amy Robson, who was leaning against
the wall, with her head bobbing up and down, in what the officers described as a
"semi-conscious state." She was quiet, and appeared to be having trouble
staying awake. Neither officer saw any of the three people at the table actually
go up to the bar and buy a beverage. Nor did the officers observe any person
deliver a beverage to the table. But O�cer Reginek did observe each of the
three people drinking from glasses or cans that were already on the table.
Neither officer recognized Rabson, but both of them recognized one of the other
people at the table, Ricky Isaac. They had seen Isaac often before on their
patrols.
5. After approximately 15 minutes in the bar, the two officers went
outside. Shortiy thereafter, Robson and Isaac exited the bar. The officers
watched as they proceeded. east along Wells Street, and noticed that Robson
was unabfe to waik without holding herself up by piacing her hand on the building
wall. The officers approached the two, and spoke with them. Robson was nearly
incoherent, and was obviously highly intoxicated. Isaac had bloodshot, watery
eyes and a strong odor of alcoholic beverages on his breath, and slurred his
speech, but he was better able to speak than was Robson. The officers called
for a portable breath test squad, and administered PBT to both Robson and
isaac. Robson's PBT results were .273 blood alcohol content, while Isaac's PBT
results were .291. In fhe course of their conversation, Robson toid the officers
that she had been drinking in Reaney's since 3:00 p.m. that day. The officers
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determined that neither of fhe two had a permanent address, and they were
contemplating having them taken to detox when an emergency call came in
regarding a high speed chase nearby. The officers left to join the chase, leaving
Isaac and Robson on Wel{s Street.
6. The o�cers later filed an lncident Report, aileging that Reaney's had
sold aicohol to obviously intoxicated persons. The Administrative Law Judge
finds that Reaney's did sell an intoxicating beverage to an obviously intoxicated
person when it sold to Amy Robson. However, there is insu�cient evidence to
find that Ricky Isaac was obviously +ntoxicated at the time of any sale to him.
Reaney's did fail to maintain sobriety +n the establishment.
7. Approximately three weeks later, on Friday, January 9, 2004,
numerous police personnel executed a search warrant at Reaney's as part of an
ongoing investigation conceming the iilegal sale of narcotics and weapons
violations. The police entered the bar at approximately 11:30 p.m.
8. O�cers Reginek and Dunaski were among the first to enter the bar.
They observed two individuals who appeared to be under the age of 21. The
individuals were backing away from the bar as the officers entered, and promptly
attempted to leave the bar. Officer Reginek radioed to police stili outside the bar
to stop the two. They were apprehended, and both were discovered to be under
age. The man (Patrick Williams) had an ID, which turned out to belong to his
oider brother. The picture on the ID did not match the face of the individual who
had been in the bar. Williams was booked for giving false information. He
admitted that he had been drinking at the bar. The girl (Antoinette Townsend)
also admitted she had been drinking in the bar. She did not have a valid 1D with
her. She was cited for underage consumption. Both were handcufFed and
placed inside a paddy wagon. None of the police actually observed eiiher of
these individuals drinking at the bar, nor did they test the glasses which were
located on the bar in front of the individuals. Both were given PBT's, and the
man had a.115 BAC, while the woman had a.033. There is no evidence that
any of Reaney's empioyees made a visual examination of Wilfiam's ID and
compare the photograph to the person presenting it. The Administrative Law
Judge finds that Reaney did seil to and did alfow both of them to consume
intoxicating beverages.
9. The City is recommending that Reaney's receive a$2,000 fine, and
a 30-day suspension of the licenses, with 20 days of the suspension stayed for a
period of 18 months. Reaney's, on the other hand, denies both of the
ailegations, but argues that under the presumptive penalty matrix contained in
the City Code (Section 409.26(b)}, only a fine shali be imposed, not any
suspension. One of the reasons the City is asking for a higher penalty is a recent
simi{ar violation.
10. On September 6, 2003, police officers obsented an individual leaving
Reaney's at closing time who was so intoxicated that she had to be taken to
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detox. This lead LIEP to propose taking adverse action againsf the license, and
Reaney's requested a hearing. On December 2, 2003, at the time of the hearing,
a settfement was reached whereby Reane�s agreed fo admit to the violafion of
failure to maintain order and sobriety and accept a recommended penaity in fhe
amount of a$500 fine. This settlement was brought to the City Council and, on
December 17, 2003, the Council adopted resolution #03-1103, ordering the $500
fine for the violation of failure to maintain order and sobriety. The resolution was
fhen forwarded to the Mayor's o�ce. Before the Mayor had acted on the
resolution, however, the incident of December 20, 2003, invofving Amy Robson
and Ricky Isaac, occurred. The Mayor signed the resolution four days later, on
December 24, 2003.
11. At the December 17, 2003 City Council hearing, Mr. Reaney stated
that he thought the citation and penalty were "ridiculous", that the process was "a
waste of time" and that he thought Reaney's "wou{d be back here soon".
Based upon the foregoing Findings of Fact, the Administrative Law Judge
makes the foliowing:
CONCLUSIONS
1. The City Council of the City of St. Paul and the Administrative Law
Judge have jurisdiction in this matter pursuant to M+nn. Stat. § 14.55 and §
310.05 of the City's legislative code.
2. The City has given proper notice of the hearing in this matter and
has fulfilled all relevant substantive and procedural requirements of law or rule.
3. Minn. Stat. § 340A.502 provides that no person may sei{ alcoholic
beverages for the use of an obviously intoxicated person. On the evening oF
December 20, 2003, Amy Robson was sold intoxicating beverages by Reaney's
when she was obviously intoxicated. The evidence is insufficient to determine
that Ricky Isaac was obviously intoxicated at the time of a sale.
4. Minn. Stat. § 340A.503, subd. 1(a) makes it uniawful for any Iicensee
to permit any person under the age of 21 years to drink alcohoiic beverages on
the licensed premises. Section 340A.503, subd. 2 makes it unlawful for any
person to sefl or give alcoholic beverages to a person under 21 years of age. In
this case, the evidence demonstrates that Reaney's did violate both subdivisions
of that statute on January 9, 2004, in the cases of Patrick Wifliams and Antoinette
Townsend. Minn. Stat. § 304A.503, subd. 6(b) provides a"safe harbor" for
facilities accused of violating subd. 2(1) if the facility can "prove...reasonably and
in good faith refied upon representations of proof of age..." such as a valid
driver's license with a photograph and date of birth. The evidence in this case
does not support Reaney's entitlement to the "safe harbor" provision.
5. Section 409.26 of the City's Municipal Code sets forth presumptive
penalties for violations in connection with intoxicating liquor and non-intoxicating
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malt liquor. Paragraph (a), however, provides that fhe Council may deviate from
the presumptive penaities in an individuai case if it determines "that there exists
substantial and compeliing reasons making if more appropriate to do so." The
presumptive penalty for sale of alcoholic beverages to underage person for a
facility with a seating capaciiy ofi up to 149 persons is $500. 7he penalty for sale
of alcoholic beverage to an intoxicated person where there is a second
appearance is doubled, which would be a totat of $1,000. Adding the two
togefher results in a presumptive pena4ty of $1,500.
6. The City argues that the fact that the December 20 violation followed
so ciosely upon an identical September 6 violation (when the Council acted on it
on December 17), supports a strong penalty, such as an increased fine and a
closure. The City also argues that Mr. Reaney's behavior at the City Council
hearing on December 17 suggests that there should be an upward departure
from the presumptive penalty.
Based upon the foregoing Concfusions, the Administrative Law Judge
makes the following:
RECOMMENDATION
THE ADMINISTRATIVE LAW JUDGE RESPECTFULLY RECOMMENDS:
that the City Council take adverse action against the licenses of M. Reaney, lnc.,
by imposing a presumptive penalfy of $1,500 and a suspension of ten
consecutive days, stayed for a period of 18 months upon the condition of no
similar violations.
Dated this ��day of September, 2004 .�/�� �
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ALLAN W. KLE{N
Administrative Law Judge
Reported: Taped
MEMORANDUM
The on{y di�cult question presented by this case is whether or not the
presumptive penalty is strong enough, given a recent prior violation and Mr.
Reaney's apparent dis�egard for the statutory standards. The Administrative Law
Judge does not believe that the facts justify going as far as LIEP has
recommended, but he does believe that the facts justify doing something above
the presumptive penalty. Of course, it is up to the Council to make the final
decision on the penalty, and going so far as LIEP has recommended would not
be unreasonable.
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One of the police officers who regufarly patrols the Payne Avenue area
defended the decision not to take Amy Robson and Ricky isaac to detox by
pointing out "iYs an everyday occurrence to have intoxicated people on Payne
Avenue.° The area around Reaney's has plenty of bars, and Isaac was known to
wander in and out of severai of them in a day. He was well known to the officers.
One of the o�cers implied that he was one of many "street people" who inhabit
the area and drift through the bars.
The sfafute and the City code both prohibit fhe sale of intoxicating
beverages to person who are obviously intoxicated, and the City code requires
licensees to maintain order and sobriety in their place of business. The fact that
the first citation and fine did not seem to cause a change in the atmosphere at
Reaney's certainly justifies the higher fine imposed by the Matrix. The recency in
time between the two violations, and Mr. Reaney's behavior at the first hearing
justify an upward departure. The Administrative Law Judge believes that a
stayed suspension of the license would be a reasonable departure, but also
believes that the City Council may exercise its discretion to go beyond that
penalty, ali the way up to the higher fine and executed suspension recommended
by LIEP.
A.W.K.
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