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CR 99-46 Alcohol Servers Policy Hopkins Center for the Arts I Y \ 0 \ V /:' ~ March 6, 1999 ,y '" . o P K \ ~ CR 99-46 Alcohol Servers Policy for the Hopkins Center for the Arts Proposed Action Staff recommends approval of the following motion: Motion to approve the alcohol servers policy for the Hopkins Center for the Arts. The Hopkins Center for the Arts (HCA) Operations Board recommends that the Council approve the alcohol servers policy for the HCA. The policy is necessary to assure compliance with municipal, state and federal laws and ordinances regarding alcohol service. Overview On April 1 , 1997 the HRA, at the recommendation of the Facility Design Committee, approved that HCA policy would include the ability to serve alcohol. In order to assure that the alcohol is served within the limits of the law and to assure adequate insurance coverage in these situations, an alcohol servers policy was developed. The policy was developed through research that included . reviewing Minnesota statutes regarding alcohol, information and opinions from the Department of Public Safety, Alcohol and Gambling Control, opinions from Youngdahl and Associates, the League of Minnesota Cities legal services and the city's attorney. The Alcohol Servers Policy for the HCA is the result of this research and has been reviewed in its final form by the city's attorney, Primary Issues to Consider . What are the options for serving alcohol at the Hopkins Center for the Arts? . Does the Alcohol Servers Policy address legal and insurance issues relating to alcohol service? Supportin~ Information . HCA Alcohol Servers Policy #99-1 JJ dJt-~ . y ~trachota Facilities Manager, Hopkins Center for the Arts . Primary Issues to Consider . What are the options for serving alcohol at the HCA? The proposed Alcohol servers policy provides options for all types of alcohol service at the HCA, The policy provides for sales of alcohol alone, alcohol service with food, alcohol service by community groups and alcohol service for individuals having events at the HCA. The intent of the policy is to keep options open for all users of the HCA, while keeping within the limits of the law, and providing adequate insurance. Another option for alcohol service would be a more limiting policy that funnels all alcohol service thorough a single provider, While administratively this may be a less complex strategy, in practice it could be cost prohibitive and possibly too inflexible for the users of the HCA. Staff & Operations Board recommends the Alcohol Servers Policy as written. . Does the Alcohol Servers Policy address legal and insurance issues relating to alcohol service? . This policy was written with recommendations from the Department of Public Safely, Alcohol and Gaming Control, Staff received insurance recommendations from Youngdahl and Associates and the League of Minnesota Cities, The policy has been compared with alcohol policies of other community facilities that allow alcohol service and the City Attorney has reviewed the policy. Having these recommendations and comparisons, the staff feels confident the HCA Alcohol Servers Policy will protect the interests of the City of Hopkins. . . Hopkins Center for the Arts Alcohol Servers Policy Arts Center Policy #99-1 1. PURPOSE 1.01 The purpose of this directive is to set forth policies for alcohol service at the Hopkins Center for the Arts (HCA). 1.02 These policies are intended to assure compliance with all FederaL State and Municipal laws and ordinances regarding alcohol service at the HCA. 1.03 While 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 controllcgal compliance and administrative costs. II. GENERAL 2.01 All organizations/Individuals serving a!coholmust follow the established HCA Alcohol Policy that is included in the rental packet. 2.02 All Renting Organizationsllndividuals 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. 2.03 Alcoholic beverage service will end no later than 12:00 A.M. . 2.04 Violations 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. 11 I. DEFINITIONS For the purpose of this policy. the following uefinitions 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 incJudes 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 tor through the donations of the guests. . . IV. SALE OF ALCOHOLIC BEVERAGES 4.0] For the purpose of this directive the sale of alcoholic beverages shall include all direct, indirect and implied monetary exchanges In!" 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 HCA Management mllst use one of the following methods. . Use services of the designated liquor provider of the HCA. . Choose a caterer from the HCA approved list of caterers that possesses a cun'ent states liquor catering license, . Qualify as a I lopkins based organization and follow the method described in I 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 materictls, and other media promotions, . Application to the city for a temporary liquor license is submitted at kast forty five (45) days prior to the event. . A certificate ofliquor 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. He A DESIGN A TED 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 tor 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 He A will be required to enter into an agreement with the HC^ that specifies such items as tenTIs. rights, equipment. appropriate dress and standards for servers, taxes. insurance. indemnification. commission. licenses and permits. ').04 The HC A will enter into agreement wi th 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 marc than two (2) letters or interest are received a bid process will be implemented to determine the two (2.) I iqllor providers for the year. 5.06 The HCA, through the entered upon agreement, reserves the right to cancel the agreement ('or 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. . .