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HomeMy WebLinkAbout1986/11/03 - ADMIN - Minutes - City Council - Regular (2)MINUTES ADMINISTRATIVE HEARING ST. LOUIS PARK CITY COUNCIL November 3, 1986 6:30 p.m. A special meeting of the City Council was called to order by Mayor Lyle Hanks at 6:30 p.m. The following Council members were present at the hearing: Ronald Backes, Thomas Duffy, Keith Meland, Larry Mitchell, David Strand and Lyle Hanks. The City Attorney summarized the facts of the violation as reflected in the file as follows: The Minnesota Statutes Section 609.16 related to gambling was violated on November 12, 1985 at Bunny's Liquors, 4730 Excelsior Blvd. Bunny's had prior violations as summarized in a memorandum to the City Council dated October 27, 1986. Other documents which were introduced into the record included: Notice of License Violation to Licensee; subpoenas for Gust Anastasion, Rovert Evans, Robert Kivo, Shirley Aragon and Craig Teter; copies of the police reports and copies of Hennepin County Municipal Court records confirming the guilty pleas for gambling offenses of four of the above-named individuals. The City Attorney stated this is not a judicial proceeding and that the only concern in this hearing is with the license issued by the City Council. +` The City Attorney stated that this is not a contested proceeding. The licensee apparently acknowledges the occurrence of the violation of the liquor law and ordinance stated in the Notice of Hearing. The City Attorney stated that at this time it would be appropriate for the licensee to make a statement with respect to what it believed to be mitigating facts. He further stated that the City Council may then have questions of the licensee or of any of the subpoened witnesses regarding the facts of the matter. He stated that the licensee may also ask questions of any witness. if requrested by the licensee, witnesses testifying will be sworn. Beverly Keogan, the owner of Bunny's, stated that to her knowledge there had never been any gambling at Bunny's up until the time that charitable gambling was approved by the City Council. She also stated that the police came in the morning, not in the evening. She asked Bunny's manager to address the Council. Manager David Nygaard stated that Mr. Teter was a former employee of Bunny's and was employed during the time period of Oct. 21 through Nov. 19, a period of less than a month. He also added that Mr. Teter contested V innocence in this matter. _ M'. Kilo was not working as an employee at the time of the arrest. Mr. hlgaard did acknowledge that Mr. Kiyo had been a part-time bartender z at Bunny's until November 11. Councilman Backes asked Chief Mitchell to describe the circumstances Of investigation. Chief Mitchell referred the question to Lt. Percy Morris who supervised the investigation. Lt. Morris stated that the Police Depart - went had received information that illegal gambling 29as taking place at Bunny's 1985, officers Y s Liquors at 4130 Excelsior Blvd. On Administrative hearing Bunny's Liquors November 3, 1986 2. went to Bunny's and observed parlay cards in the bar area. After viewing the cards, the officers left. On Nov. 5, 1985 officers went to Bunny's Liquors for a followup surveillance based on previous observations. Within the establishment, parlay cards were observed. In addition, Shirley Leona Aragon passed a number of parlay cards to Gust George Anaasion. Mr. Anassion proceeded to pass parlay cards to an unidentified male. Approximately 40 to 45 minutes later, an envelope from Mrs. Aragon containing parlay cards was passed to the bartender on duty, Craig Lee Teter. Mr. Teter took the envelope from Mrs. Aragon, walked over to the cash register and placed the envelope in a drawer under the cash register. Following that incident, the officers left and Mrs. Aragon left the establishment. Based on the information learned during the surveillances at Bunny's Liquors, a search warrant was drawn up and approved. On Nov. 12, 1985 a surveillance detail was set up at Bunny's Liquors at 4730 Excelsior Blvd. Gambling activities were observed at the bar. At approximately 12:15, an officer requested assistance in arresting the parties that had been observed gambling. Lt. Morris stated that evidence such as pulltabs, betting sheets handwritten, handwritten sheets, cash, blank personal checks, parlay cards, IOU slips, yellow tip cards, tip receipts and pulltabs and paper betting boards were found as evidence on those arrested and at the establishment of Bunny's Liquors. Lt. Morris added that the arrest resulted in the arrest of several others in other communities not directly involved at Bunny's and a printing press. Councilman Meland asked if any employees were seen with gambling cards. Lt. Morris stated that yes there were. Mr. Teter in particular at the time of the arrest was found with six pulltabs, one college football sheet, one NFL football sheet and two parlay cards. Mr. Kivo was found with $432 in cash. Councilman Meland asked the location of the printing press. Lt. Morris responded that it was located in the City of Crystal. Councilman Meland asked whether employees or patrons were involved. Lt. Morris stated that a total of 13 were involved. Councilman meland asked whether any of the liquor establishments were involved. Lt. Morris stated no, one other distribution point was a restaurant. The City Attorney reiterated the opportunity for the licensee to ask any questions of the witness. Manager of Bunny's Liquors, David Nygaard, asked Lt. Morris whether he had knowledge of the contents of the envelope that passed hands. Lt. Morris said that it was a sealed envelope and he could not be certain what its contents were at the time. Councilman Meland asked whether the employees involved had been terminated. Mr. Teter said that one employee was terminated on Nov. 11 and one employee left on Nov. 19 for another job. Mr. Teter stated that he did not have any gambling paraphenalis and that Bunny's has a practice of giving envelopes to the bartender which include money for paying the distributor, etc He stated on that date he did not remember Shirley giving him an envelope. He stated that Bunny's Liquors Administrative hearing Bunny's Liquors November 3, 1986 is not at all involved to a petty misdemeanor on an attorney. 3. in this incident. He stated that he plea bargained because he did not want to spend any extra money The City Attorney again stated that the licensee has an opportunity to ask questions of those subpoened or introduce other information or evidence. Manager David Nygaard stated his customers frequently come to the bar to discuss Canterbury Downs picks and that his customers own horses at Canterbury Downs and that to his knowledge no gambling at Bunny's occurs and that these discussions do not violate the liquor license. Mayor Hanks closed the hearing. Councilman Meland stated that the procedure is to first vote on whether a penalty ahould be assessed and secondly, to vote to determine what the penalty should be. It was moved by Councilman Meland, seconded by Councilman Strand, that a penalty be assessed. The motion passed 6-0. It was moved by Coucilman Meland, seconded by Councilman Backes, that the license be suspended for 10 days beginning November 7, 1986. Councilman Strand asked under similar circumstances what the similar penalty is. Mayor Hanks responded that to his knowledge there are no similar circumstances that have been presented before the Council. Mayor Hanks said that in the past, penalties had ranged from partial days to a full month of suspension. The motion passed 5-1 (Mayor Hanks opposed). Mayor Hanks stated he was not opposed to assessing a penalty but was opposed to the severity of the penalty. It was moved by Councilman Meland, seconded by Councilman Duffy, to adjourn. The administrative hearing adjourned at 7:05 p.m. 6bt Chrmen Kaplan Recording Secretary