07-15-1991 CC MIN - Laserfiche WebLink

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City Council Minutes July 15, 1991 Page 2 e 5.1. Consider Ordinance Amendment Revisin~ Amount of Reauired Liauor Liability Covera~e Mayor Tralle explained that the City's current ordinance requires liquor liability coverage of $500,000. He indicated that Council has been requested to review this requirement because liquor licensees feel this amount of coverage is too high. Mayor Tralle indicated that the State minimum requirement is $50/100,000 for liquor liability, however, it is within the City's discretion to increase this amount. George Larson, of Elk River Bowl, questioned why the City of Elk River is requiring more dram shop coverage than the State. Dave Sellergren, the City Attorney, stated that many cities do opt to increase the State's minimum requirement. He stated that the City of Elk River must decide if it wants the people who use the facilities to have a higher degree of protection. Councilmember Kropuenske stated that the City has an obligation to the ci tizens of the communi ty to provide them with an adequate level of protection. Rick Kurth, of Broadway Bar and Pizza, indicated that by increasing the coverage, the City is forcing the liquor licensees out of the City as some of them cannot afford coverage for $500,000. He indicated he had no objection to $300,000 of coverage. e Mike Hadtrath, of Hadtrath and Associates, stated that the City's ordinance would affect each establishment differently. He stated that he felt each owner should be able to decide how much coverage they want for protection. John Purmort, of the Sunshine Depot, stated that it was cost prohibitive to the liquor establishment owners to carry a higher liquor liability coverage. Sandra Thackeray, Ci ty Clerk, indicated that she had researched some cities regarding the current amount of required liquor liability coverage. She noted that she did not find any cities requiring $500,000 and that there were some cities that required $300,000. She stated that the normal coverage requirement was $50/100,000 which is the State minimum. It was the consensus of the City Council to lower the liquor liability requirement in the City's current ordinance from $500,000 coverage to $100,000/300,000. e COUNCILMEMBER SCHULDT MOVED TO ADOPT ORDINANCE 91-14, AN ORDINANCE AMENDING SECTION 800.26 OF THE CITY CODE OF ORDINANCES RELATED TO LIQUOR LIABILITY COVERAGE DECREASING THE AMOUNT OF LIQUOR LIABILITY COVERAGE FROM $500,000 TO $100,000/300,000. COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 4-0. Mayor Tralle noted that all liquor establishments shall have the City's required liquor liability coverage of $100,000/300,000 by the end of July.