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Steamboat Springs — The Steamboat Springs City Council voted unanimously Thursday to accept police allegations that six local businesses sold alcohol to a minor in December. The vote sets the stage for upcoming show-cause hearings, during which each business presents its case before the council determines appropriate punishment.

Thursday's probable cause hearings and the upcoming show-cause hearings are part of a new process established so the council can better regulate and punish businesses that sell alcohol to underage buyers. The council, which also serves as the city's liquor licensing authority, can fine businesses or suspend their liquor licenses under the new ordinance.

The ordinance was passed after a September alcohol compliance check during which nine of 11 businesses sold alcohol to an underage person cooperating with police.

In all previous compliance check cases, both the clerks who sold alcohol to the minor and the business owner were given citations and forced to go through the judicial system. Under the new system, the clerks still are cited, the business owners or liquor-license holders are forced to appear before the City Council instead of going through the court system.

During Thursday's probable cause hearings, City Clerk Julie Jordan presented the council with police reports and other documentation alleging that Dos Amigos, Cantina, Market on the Mountain, Steamboat Discount Liquors, the Fireside Bar at Holiday Inn and the Rio Grande Mexican Restaurant sold alcohol to a minor during a Dec. 16 compliance check.

Jordan explained to the council that the probable cause hearing was an opportunity for its members to determine whether there was sufficient evidence that the six businesses violated the law. If probable cause was determined, the process would move forward to show-cause hearings and possible punishment for guilty businesses.

Council members struggled with the new process as they tried to understand their role in the proceedings.

"This is just the probable cause hearing," city attorney Tony Lettunich told council members. "This is not a show-cause hearing. You will not hear from the businesses today. There will be no testimony. This is a low bar to climb over at this point."

As part of the city's presentation to the council, police Capt. Joel Rae summarized what took place the night of the compliance checks and explained how the police department determined its underage buyer was able to purchase alcohol at each establishment.

At the end of his presentation, Rae told the council that he recommended it move forward with the prosecution process and schedule show-cause hearing dates.

After a short discussion, council member Susan Dellinger made a motion that the City Council find probable cause that the businesses violated state law by permitting the sale of alcohol to a minor, and she suggested that the council set show-cause hearing dates.

The City Council divided the show-cause hearings into three days based on Lettunich's suggestion that breaking up the hearings would make them more manageable.

Lettunich also recommended that the council discuss how to handle any case in which liquor-license holders want to resolve the matter before their show-cause hearing.

The City Council then entered executive session to discuss how it would negotiate potential resolutions in the alcohol cases.

At least one business has expressed an interest in resolving its case before its scheduled show-cause hearing. City staff attorney Dan Foote said reaching an early decision in the case is a possibility.

Before Thursday's hearings began, City Council member Kevin Kaminski --president of B&K Distributing -- stepped down to avoid a conflict of interest. City Council member Paul Strong told fellow council members he once worked at Dos Amigos and was concerned about a conflict of interest. The other council members said they had no problem with Strong's participation in the hearings.

The show-cause hearings are scheduled to take place two businesses at a time on March 2, April 6 and May 4.

-- To reach Alexis DeLaCruz, call 871-4234 or e-mail adelacruz@steamboatpilot.com