8.6. SR 01-17-2012REQUEST FOR ACTION
TO ITEM NUMBER
Ma or and Ci Council
AGENDA SECTION MEETING DATE PREPARED BY
General Business anua 17, 2012 Tina Allard, Ci Clerk
ITEM DESCRIPTION REVIEWED B~/
Incorporating Liquor Legislation Changes into City Code Cal Fortner, Ci Administrator
1. Ordinance Amending Various Section of Chapter 6 REVIEWED BY
Regulating Alcoholic Beverages
2. Ordinance Amendin the 2012 Master Fee Schedule
ACTION REQUESTED
Two Council motions for the following items:
1. Adopt the ordinance to amend various sections of Chapter 6 regulating alcoholic beverages.
Adopt the ordinance to amend the 2012 Master Fee Schedule in order to incorporate new
licensing fees.
BACKGROUND/DISCUSSION
Earlier this year the Minnesota Legislature made various changes to state liquor laws: The language in the
draft ordinance is taken directly from statute. The following changes have been incorporated into Chapter
6 of the City Code regulating alcoholic beverages for Council consideration. This new legislation allows
these types of activities but the city can be stricter on what it will allow.
Wine Festival
The city with approval from the State of Minnesota would be allowed to issue a wine festival license to a
wine association for an annual wine festival event, Wines produced by the association members could be
offered for sale by the glass (limit of two per customer) and the dispensing of free samples would also be
allowed.
Fees
The recommended fee for this license is $100 per day.
Temporary On-Sale Licenses; Farm Winery
The city would be able to issue a farm winery a temporary license for on-sale at the county fair of
intoxicating liquor produced by the winery.
Fees
The recommended fee for this license is $40 per day.
Pox~ellt ~r
N:\Public Bodies\City Council\Council RCA\Licensing\Liquor\2012\Brewer Taproom.docx ~~
Brewer Taproom
The city would be able to issue to the holder of astate-issued brewer's license a brewer taproom license.
This license allows the on-sale of malt liquor produced by the brewer for consumption on the premises of
or adjacent to the brewery location owned by the brewer. The brewer is limited to one taproom license
and can't brew over 250,000 barrels of malt liquor, or produce over 250,000 gallons of wine annually.
Fees
The recommended fee for this license is $225 a year. The first year there would also be an investigation
fee. These fees are already set up in the fee schedule (Single- $200 and Association, Partnership, and
Corporation-$400).
Insurance
Being we are doing some updates to the liquor ordinance I felt the need to evaluate our insurance
coverage requirements as they seem low. I contacted the city's insurance agent, Mary Eberley, and the
changes she recommended are incorporated in the ordinance. She noted that most insurance agents
would recommend these amounts. Our current licensees do meet these new requirements already.
Feel free to give me a call at 763.635.1003. if you have any questions.
ATTACHMENTS
• Ordinance Amending Various Sections of Chapter 6 Regarding Alcoholic Beverages
^ Ordinance Amending the 2012 Master Fee Schedule
Action Motion by Second by Vote
Follow Up
N:\Public Bodies\City Council\Council RCA\Licensing\Li9uor\2012\Brewer'Taproom.docs
ORDINANCE 12-
CITY OF ELK RIVER
AN ORDINANCE OF THE CITY OF ELK RIVER AMENDING VARIOUS
SECTIONS OF CHAPTER 6 REGULATING ALCHOLIC BEVERAGES OF THE ELK
RIVER, MINNESOTA, CITY CODE
The City Council of the City of Elk River does hereby ordain as follows:
Section 1. Section 6-1 titled, Definitions, of the City of Elk River Code of Ordinances shall be
amended to add the following definitions:
Section 6-1 Definitions
Breaver means a person who manufactures malt liquor for sale.
Farm zvinery means a winery operated by the owner of a Minnesota farm and producing table,
sparkling, or fortified wines from grapes grape i_,uice other fruit bases, or honey with a majority of
the ingredients~rown or produced in Minnesota.
Section 2. Section 6-52 (5) titled, Temporary on-licenses, of the Ciry of Elk River Code of
Ordinances shall be amended as follows:
Section 6-52 (5) Types of licenses
(5) Temporary ~ licenses.
a. Gen,;~ally: Temborarv on-sale licenses: The city may issue to a club or charitable, religious, or
nonprofit organization in existence for at least three years a temporary license for the on-sale of
intoxicating liquor in connection with a social event within the city sponsored by the licensee.
The license may authorize the sale of intoxicating liquor for not more than four consecutive days
and may allow on-sales on premises other than premises the licensee owns or permanently
occupies. The license may provide that the licensee may contract for intoxicating liquor catering
services with the holder of a full-year on-sale intoxicating liquor license issued by any
municipality. Temporary on-sale intoxicating liquor licenses require the approval of the
commissioner of public safety. Licenses are subject to terms and license fees normally imposed
by the city.
fib Farm zvinerw licenses: The city may issue to a farm winerylicensed under M.S. Section
340A.315 a temporary license for the on-sale at a county fair located within the municipality of
intoxicating liquor produced bathe farm winery. The licenses are subject to all laws and
ordinances g_overning~ the sale of intoxicating liquor not inconsistent with this section. Licenses
under this subdivision are not valid unless first approved by the commissioner of public safety.
(~ 1-Y/ine Festival.• The city may issue a te~orary license to a bona fide association of owners
and operators of wineries sponsoring an annual festival to showcase wines produced by members
Page 1 of 3
of the association. The license issued under this subdivision authorizes the sale of table, sn~ g,
or fortified wines produced by the wineries at on sale by the glass,~rovided that no more than
two glasses per customer may be sold~and the dispensing of free samples of the wines offered
for sale within designated premises of the festival. A license is subject to all laws and ordinances
governing the sale, possession, and consumption of table, sua~ rkling, or fortified wines. For
purposes of this subdivision, a "bona fide association of owners and operators" means an
association of more than ten wineries that has been in existence for more than two years at the
time of application for the temporary license.
~ License restrictions.
l-a. The city may not issue more than three four-day, four three-day, six two-day, or 12 one-day
temporary licenses in any combination not to exceed 12 days per year for the sale of alcoholic
beverages to any one organization or for any one location, within a 12-month period.
2b. The city may not issue more than one temporary license for the sale of alcoholic beverages
to any one organization or for one location within any 30-day period unless the licenses are issued in
connection with an event officially designated a community festival by the city.
E Insurance. The council may, but at no time shall it be under any obligation whatsoever to,
grant a temporary on-sale intoxicating liquor license or temporary on-sale 3.2 percent malt liquor
license for premises owned or controlled by the city. Any such license may be conditioned,
qualified or restricted as the council sees fit. If the premises to be licensed are owned or under
the control of the city, the applicant shall file with the city, prior to issuance of the license, a
certificate of liability insurance coverage in at least the sum of 500 000 ~~AA;89&88 for injury to
any one person, 500 000 ~~S9;9A9:A8 for injury to more than one person, and 500 000
;9A9:A9 for property damage, naming the city as an insured during the license period.
Section 2. Section 6-52 (9) & titled, Brewer Taproom Licenses, of the City of Elk River Code
of Ordinances shall be added as follows:
Breaver Taproom License
A brewer taproom license authorizes on-sale of malt liquor produced by a state licensed brewer
for consumption on the premises of or adjacent to one brewery location owned by the brewer.
Elieibility.
1. A brewer matey have one taproom license and may not have an ownership, interest in
another brewerv.
2. A brewer taproom license may not be issued to a brewer if the brewer seeking the license or
any person having an economic interest in the brewer~seekin~ the license is a brewer that
brews more than 250,000 barrels of malt liquor annually or a winery that produces more than
250,000 gallons of wine annually
Sec. 6-58. -Liability insurance.
(a) Kequired. No beer, wine, or intoxicating liquor license shall be issued, maintained, or renewed unless
Page 2 of 3
and until the applicant has provided the proof of financial responsibility with regard to liability imposed by
Minn. Stats. ~ 340A.801. The issuing authority must submit to the commissioner the applicant's proof of
financial responsibility. The requirement for proof of financial responsibility shall be fulfilled by filing the
following:
(1) A certificate that there is in effect an insurance policy or pool providing minimum coverages of:
a. Bodily injury -each person limit 500 000
Bodily injury -each occurrence limit 500 000
Property Damage -each occurrence limit 500 000
Loss of means of support -each person limit 500 000
Loss of means of support -each occurrenc3 limit 500 000
Annual aggregate limit 1 Million
a.
(2) A bond of a surety company with minimum coverages as provided in subsection (a)(1) of this
section; or
(3) A certificate of the state treasurer that the licensee has deposited with him $498;89A:A8 1 million
in cash or securities which may legally be purchased by savings banks or for trust funds having a
market value of $4-AA;~99:98 $1 million.
Section 3. That this ordinance shall take effect upon publication as provided by law.
Passed and adopted by the City Council of the City of Elk River this 17`" day of
January, 2012.
John J. Dietz, Mayor
ATTEST:
Tina Allard, City Clerk
Page 3 of 3
~l~e~-reagl~s to be removed
Underlines to be added
ORDINANCE 12-
CITY OF ELK RIVER
AN ORDINANCE OF THE CITY OF ELK RIVER AMENDING
THE 2012 MASTER FEE SCHEDULE OF THE ELK RIVER, MINNESOTA,
CITY CODE
The City Council of the City of Elk River does hereby ordain as follows:
Section 1. The 2012 Master Fee Schedule of the City of Elk River Code of
Ordinances shall be amended to read as follows:
LICENSES
^ Billiard Hall $35/table
^ Kennel
o Commercial $75/year
o Residential $50/year
^ Liquor
law.
0 3.2% Malt Off-Sale $75/year
0 3.2% Malt On-Sale $225/year
o Brew Ta~Room 225 ear
o Club $300/year
o Consumption & Display (Set-up) $75/year
o Intoxicating On-Sale $5,000/year
o Intoxicating Sunday On-Sale $200/year
o Temporary Community Festival (on-sale) $100/day
o Wine Festival 100 da
o Temporary 3.2% Malt On-Sale $30/day
o Temporary On-Sale $40/day
o Temporary On-Sale Farm Winery 40 da
o Wine $700/year
o Initial Investigation Fee for Intoxicating Licenses
^ Single $200
^ Association, Partnership, Corporation, Club $400
Section 2. That this ordinance shall take effect upon publication as provided by
Passed and adopted by the City Council of the City of Elk River this 17th day of
January, 2012.
n:\departments\administrative services\administration\fee schedule\2012\amendment 011712 liquor.doc
John J. Dietz, Mayor
ATTEST:
Tina Allard, City Clerk
s:\document\ordinance\oa97-l.doc