A. Authority; Grounds: The City Council upon its own motion and shall upon the verified complaint in writing of any person, investigate the action of any licensee under this Chapter and shall have power to cancel, temporarily suspend for such a period of time as it deems advisable, or permanently revoke a license or place such restrictions and conditions upon a license as it shall deem necessary or advisable, for any one of the following acts or omissions:
1. The failure to make timely payment of license fees and penalties, or either of them; provided, however, no action by the City Council shall be necessary in the event of nonpayment of license fees and penalties on or before the fifteenth day of the month in which they came due as provided in this Chapter; or
2. The misrepresentation of any material fact by the applicant in obtaining a license under this Chapter; or
3. If any one of the licensees named in a license violates or causes or permits to be violated any of the provisions of this Chapter; or
4. If any manager, bartender, agent, servant, officer or employee of a licensee hereunder violates or causes or permits to be violated any of the provisions of this Chapter while acting in any way in connection with the licensee's business; or
5. If any one of the licensees named in a license commits any act which would be sufficient grounds for the denial of an application by such licensee for a license under this Chapter; or
6. If any one of the licensees named in a license or any manager, agent, bartender, servant, officer or employee of a licensee refuses to permit the Chief of Police or any policeman or any other duly authorized representative of the City to visit and reasonably inspect every part and portion of the licensee's premises, or refuses or fails to furnish the Chief of Police or any policeman or officer of the City upon request with all facts and information within his knowledge concerning any offense committed in or about the premises and the parties involved and the witnesses thereto; or
7. If any one of the licensees named in a license violates any of the agreements, conditions or terms contained in the application for a license, this Chapter or the license issued pursuant hereto; or
8. If any one of the licensees named in a license violates or causes or permits to be violated any ordinance of the City or any law of the State or of the United States of America regulating the sale, serving or dispensing of liquors; or
9. If the licensee or any agent or employee thereof makes, causes or permits a sale or sales of any kind of liquor other than that authorized by the class of license the licensee holds.
B. Procedures:
1. Complaint; Citation: Except in cases of the automatic cancellation or revocation of a license as in this Chapter provided, upon the filing with the City Council of a verified complaint charging a licensee with the commission, within one year prior to the date of filing the complaint, of any act or omission which is cause for cancellation, suspension, revocation, restriction or conditioning of a license, the City Council forthwith shall issue a citation directing the licensee, within five (5) days after service thereof upon the licensee, to appear by filing with the City Council the licensee's verified answer to the complaint showing cause, if any the licensee has, why his license should not be cancelled, suspended, revoked, restricted or conditions placed thereon. Service of the citation with a copy of the complaint shall be made upon the licensee in one of the following manners:
a. By personal service upon any one or more of the persons named in the license as a licensee, service upon one licensee being deemed service upon and notice to all licensees named in the license, service to be made by the Chief of Police or any police officer of the City or by the Sheriff of Elko County, or his deputy, or by any disinterested citizen of the United States over twenty one (21) years of age; or
b. By mailing by depositing in the United States mail a copy of the citation with a copy of the complaint enclosed in a sealed envelope with postage thereon fully prepaid, addressed to the licensee at the latest address of record in the City Clerk's office. Service shall be deemed complete upon the date of mailing. Without excluding other ways of proof, proof of service by mailing and the date thereof may be made by an affidavit of mailing or by proof of mailing by registered mail or certified mail.
2. In case a corporation is a licensee, then such service above specified may be upon the president, or other head of the corporation, or the secretary, managing agent, resident agent or any other officer thereof. In case of service by mailing it may be addressed to the corporation or to any of the said officers, managing agent or resident agent thereof at the latest address of record in the City Clerk's office.
3. Failure of the licensee to answer within the time specified shall be deemed an admission by the licensee of the commission of the act or acts or omissions charged in the complaint and a waiver of all defenses the licensee may have to such charges. Upon such failure to answer, the City Council shall revoke the license and shall give notice of such revocation by mailing a copy thereof, by United States mail in a sealed envelope with postage thereon fully prepaid, addressed to the licensee at the latest address of record in the office of the City Clerk.
4. Hearing; Decisions:
a. Upon the filing of an answer by the licensee, the City Council shall fix the time and place for a hearing and give the licensee and the complainant not less than two (2) days' notice thereof. The notice may be served by depositing in the United States mail a copy of the notice enclosed in a sealed envelope with postage thereon fully prepaid, addressed to the licensee and to the complainant, respectively, at their latest addresses of record in the office of the City Clerk. With the notice to the complainant there shall be attached to or enclosed a copy of the answer. If either party has appeared by an attorney, notice shall be given to the attorney instead of to the party. In the event the City, the City Council, the Chief of Police, the City Attorney or any other City officer or representative acting by or on behalf of the City is the complainant, the notices to and service of answer upon the complainant herein called for shall be dispensed with.
b. At the hearing the complainant and the licensee may appear in person or by attorney, or both, and present relevant evidence and witnesses. After the hearing is concluded and the matter submitted, the City Council shall, at that meeting or at its next regularly scheduled meeting after such submission, render its decision which must be made by the vote of a majority of the members present at the meeting. The City Council shall:
(1) Revoke or cancel the license; or
(2) Suspend the license for such a period of time as the City Council deems advisable; or
(3) Place such restrictions upon the license, the licensee and/or the licensee's place of business as the City Council deems advisable; or
(4) Make the license and the continued force and effect thereof conditioned upon such terms and conditions as the City Council shall deem advisable.
5. If in the opinion of a majority of all the members elected as Councilmembers of the City the charges set forth in the complaint have not been established or proved they shall dismiss the complaint.
6. Alteration Of Times: The City Council may, upon stipulation of the complainant and the licensee, shorten or extend the times herein set in connection with notices, pleadings and hearings.
C. Summary Suspension Of License: Notwithstanding any other provision of this Chapter, the City Council shall have the right and power to suspend summarily any license issued pursuant to this Chapter in cases appearing to it to be of an aggravated or flagrant violation of this Chapter, or of the laws of the State relating to liquors; provided, however, that the City Council shall not summarily suspend any license unless the City Council finds that such action is immediately necessary for the preservation of public health, welfare, safety and morals of the inhabitants of the City. Such order of suspension shall remain effective until further order of the City Council of final disposition of the charges upon which the order is based. In the event of a suspension without prior notice, every licensee shall immediately be given notice in writing of the reason or reasons for such suspension, which shall include a specification of the acts or omissions alleged against the licensee. The licensee shall be given an opportunity to be heard at a meeting of the City Council at which hearing the licensee may appear in person or by attorney, or both, and present a reasonable number of witnesses to show cause, if any there be, why the license should not be revoked. Notices shall be served and given, the answer filed and the hearing conducted in the manner and under the procedures provided in subsection B of this Section. The licensee may waive the time specified for a hearing and such hearing may be held at any time agreed upon by the licensee and the City Council; provided, however, that nothing herein shall be construed to limit the right of the City Council to proceed with revocation proceedings.
D. Revocation Of License Through Nonuse: In the event a holder of a license, other than one prevented or prohibited from operating by City Council action, shall discontinue business for more than thirty (30) days without the specific approval of the City Council, such license shall be revoked automatically, without action of said City Council on the day following said thirty (30) day period.
E. Reinstatement Of Licenses: When, in the opinion of the City Council, a licensee has shown proper cause, the City Council may reinstate any license which has been previously cancelled or suspended and may remove, change or modify all or any restrictions or conditions which have been set pursuant to this Chapter. (Ord. 91-14, 6-4-1991)