03-27-1991 Council Agenda - Laserfiche WebLink

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ceal Yet/4 Chi isna(4 515 Little Canada Road, Little Canada, MN 55117 -1600 (612) 484 -2177 / FAX: (612) 484 -4538 MEMORANDUM TO: Mayor Hanson and Members of the City Council FROM: Joel Hanson, City Administrator DATE: March 22, 1991 RE: Liquor Ordinance Revisions - Liquor Liability Insurance MAYOR Raymond G. Hanson COUNCIL Beverly Scalze Bill Blesener Rick Collova Jim LaValle ADMINISTRATOR Joel R. Hanson Pursuant to our discussions at the last Council meeting regarding liquor liability insurance for temporary liquor, wine and beer licensees, I have researched the matter through a variety of sources. Based on this research, the results can best be summarized as follows: * Utilizing our Agent, Dave Seppelt, the best price for liquor liability insurance is $100 per day for $50,000/$100,000 coverage. For $300,000 of coverage, the price would be $300 per day. The concern with this quotation is that if the City is named as an additional insured on the policy, the insurance company wants the City to be named on the liquor license as well. This obviously raises questions regarding increased association of the City with the event being held, including more direct liability involved with the sales activity. * The City can purchase insurance on behalf of the entities. However, there appears to be no advantage in doing so because the events would be insured on a per day basis. According to our agent, there would be no cost advantage in doing this. According to Mr. Dave Drugg of North Star Risk Management (administering entity for the League of Minnesota Cities' Insurance Trust - Property Casualty Program), he believes the key point in exposure for the City in liquor liability issues relates to how far distanced this event is from the City's operations. He stated the more factors PAGE 76A