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CR 08-065 Authorize on-sale Liquor Licensees to Serve alcohol at City Owned FacilitiesJuly 9, 2008 Council Report 2008 — 065 Authorize on -sale Liquor Licensees to Serve Alcohol at City Owned Facilities Proposed Action Staff recommends adoption of the following motion: to authorize Take One Enterprises (The Big Ten), Eleven Main (Decoys). Lindee's Saloon and Eatery, BCD Ventures (Mainstreet Bar and Grill), 819 Mainstreet Inc. (Tavern on Main), and Tuttle's Hopkins Recreation to serve alcohol at the Hopkins Center for the Arts with the condition that the licensee submit a certificate of insurance for liquor liability showing off premise coverage and naming the City of Hopkins as co- insured or additional insured. Overview State Statute allows special provisions for sport, convention, or cultural facilities owned by government agencies. A municipality may authorize a holder of a retail on -sale intoxicating liquor license issued by the municipality to dispense intoxicating liquor at any convention, banquet, conference, meeting, or social affair conducted on the premises of a sports, convention, or cultural facility owned by the municipality..... In July, 1998, The City Council authorized Take One Enterprises to serve Alcohol at the Hopkins Center for the Arts. At that time, staff sent letters to the on -sale licensees asking them if they wanted to be included in the authorization. Take One was the only licensee that responded. Recently, other on -sale licensees have asked to have the ability to provide alcohol for specific events at the Hopkins Center for the Arts. Staff called and specifically asked most licensees if they wanted to be included. Those mentioned in the recommended motion responded that they would like to be included or were not available and were included to maintain fairness. Each licensee will be required to provide a certificate of liquor liability insurance showing off site coverage and naming the City as "also insured ". Supporting Documents • Copy of State Statute 340A, Subd. 4 • HCA Alcohol Servers Policy, 99 -1 Terry Obermaier, City Clerk Subd. 4. Special provisions; sports, conventions, or cultural facilities; community festivals. (a) The governing body of a municipality may authorize a holder of a retail on- sale intoxicating liquor license issued by the municipality or by an adjacent municipality to dispense intoxicating liquor at any convention, banquet, conference, meeting, or social affair conducted on the premises of a sports, convention, or cultural facility owned by the municipality or instrumentality thereof having independent policy making and appropriating authority and located within the municipality. The licensee must be engaged to dispense intoxicating liquor at an event held by a person or organization permitted to use the premises, and may dispense intoxicating liquor only to persons attending the event. The licensee may not dispense intoxicating liquor to any person attending or participating in an amateur athletic event held on the premises. (b) The governing body of a municipality may authorize a holder of a retail on- sale intoxicating liquor license issued by the municipality to dispense intoxicating liquor off premises at a community festival held within the municipality. The authorization shall specify the area in which the intoxicating liquor must be dispensed and consumed, and shall not be issued unless the licensee demonstrates that it has liability insurance as prescribed by section 340A.409 to cover the event. I. PURPOSE Hopkins Center for the Arts Alcohol Servers Policy Arts Center Policy #99 -1 1.01 The purpose of this directive is to set forth policies for alcohol service at the Hopkins Center for the Arts (HCA). 1.02These policies are intended to assure compliance with all Federal, State and Municipal laws and ordinances regarding alcohol service at the HCA. 1.03While other legal options may exist for ability to serve alcohol at the HCA, this policy intentionally limits the options available in regards to alcohol service to control legal compliance and administrative costs. II. GENERAL 2.01 All organizations /Individuals serving alcohol must follow the established HCA Alcohol Policy that is included in the rental packet. 2.02A11 Renting Organizations /Individuals and liquor caterers distributing and /or consuming alcohol in the HCA must comply with and abide by all Federal, State and Municipal laws and ordinances. 2.03Alcoholic beverage service will end no later than 12:00 A.M. 2.04Violations in the rules set forth in this policy may result in denial of future rental or liquor, catering requests and/or cancellation of future reserved space at the HCA. III. DEFINITIONS For the purpose of this policy, the following definitions shall apply: Direct Monetary Exchange — Paying an alcohol server cash for an alcoholic beverage, i.e. "cash bar ". Indirect Monetary Exchange — An individual receives alcoholic beverages by purchasing the alcoholic beverages indirectly. The most clear example would be the purchase of drink tickets and then exchanging the tickets for beverage service. Another example would be the purchase of a single ticket for an event that includes the cost of the alcohol service so the patron makes no direct exchange to the server. Implied Monetary Exchange -- This exchange takes place when the public or guests are invited to an event in which the expectation of the event sponsoring group /individual is that the guest will make a donation. Typically a fundraising event, the guest makes no direct monetary exchange with the server, but the alcoholic beverages are paid for through the donations of the guests. IV. SALE OF ALCOHOLIC BEVERAGES 4.01 For the purpose of this directive the sale of alcoholic beverages shall include all direct, indirect and implied monetary exchanges for alcohol. 4.02 When an organization /individual or the HCA Management chooses to include the sale of alcoholic beverages with an event, the organization /individual or FICA Management must use one of the following methods. • Use services of the designated liquor provider of the I -ICA. • Choose a caterer from the HCA approved list of caterers that possesses a current states liquor catering license. • Qualify as a Hopkins based organization and follow the method described in Section 4.03 of this policy. 4.03 A Hopkins based organization or organizations may sell alcoholic beverages at an event if the following criteria are met: • Organization selling the liquor must be the sponsoring organization of the event. This must be clearly established as evidenced by sponsorship designation on printed materials, and other media promotions. • Application to the city for a temporary liquor license is submitted at least forty five (45) days prior to the event. • A certificate of liquor liability insurance is provided that shows the sponsoring organization(s) name(s), names the City as co- insured, and provides $1,000,000 of aggregate coverage. V. HCA DESIGNATED LIQUOR PROVIDER 5.01 The governing body of the City may authorize an on -sale liquor license holder from Hopkins or a neighboring city to provide liquor for sale at events held at the HCA. 5.02 The HCA Operations Board will recommend to the City Council the approval of a Designated Liquor Provider. 5.03 Designated Liquor Providers to the HCA will be required to enter into an agreement with the HCA that specifies such items as terms, rights, equipment, appropriate dress and standards for servers, taxes, insurance, indemnification, commission, licenses and permits. 5.04 The HCA will enter into agreement with two (2) Designated Liquor Provider per year. 5.05 The HCA Management will annually solicit letters of interest from qualifying on- sale liquor license holders for the HCA Designated Liquor Provider service. If more than two (2) letters of interest are received a bid process will be implemented to determine the two (2) liquor providers for the year. 5.06 The HCA, through the entered upon agreement, reserves the right to cancel the agreement for default or failure to perform. VI. SERVING ALCOHOL WITH NO MONETARY EXCHANGE 6.01 An individual /organization or HCA may bring in alcohol to serve if the following criteria are met: • The event is by invitation only, not open to the public. • There is no monetary exchange for alcohol, directly, indirectly or implied. ■ Individuals must provide proof of current homeowners insurance with a minimum personal liabilities limit of $300,000, or provide a certificate of insurance naming the City as additionally issured.