Laserfiche WebLink
Mayor Hanson and Members of the City Council <br />March 22, 1991 <br />Page 3 <br />researching this matter to see if that is the <br />actual case. <br />* The issue involving personal liability for those <br />involved in liquor or beer sales should not be <br />understated. Mr. Jack Hennen, Attorney for LMCIT, <br />stated in a LMC's loss control presentation that <br />he "would not put his own hand on the tap" of any <br />beer sales situation where liquor liability <br />insurance was not being provided. He feels the <br />risk to an individual is too great to justify that <br />type of exposure when no insurance coverage <br />exists. This issue is further discussed in the <br />attached LMC article regarding liquor liability <br />insurance for temporary wine and beer licensees. <br />* Mr. Hennen also made it clear in the loss control <br />workshop that the Statutory exemption from liquor <br />liability insurance requirements applies to <br />purchase only. It does not exempt an organization <br />from liability. <br />Also attached for your review is a letter received from Mr. <br />Doug Holm of North Star Risk Management relative to the <br />liquor liability issue. In this letter, he states a number <br />of recommendations he feels the City should utilize in <br />addressing the issue of liquor licensing. It should be <br />noted that these recommendations have been made to a number <br />of cities throughout the State of Minnesota as stated in <br />his letter. <br />Based on this information and subject to comments from the <br />City Attorney, I have no choice but to recommend the City <br />require liquor liability coverage for temporary licensees. <br />This appears to be the most common practice among other <br />cities and given the exposure Little Canada faces based on <br />the types of events and organizations we are licensing, I <br />feel the exposure is increased from that faced by other <br />cities. <br />As an additional point of information, I was informed by <br />Mr. Gerry Urban, Vadnais Heights City Administrator, that <br />in their community the Lion's Club is the license holder <br />for all events. Through Lion's International, they are <br />able to obtain liquor liability insurance at a far more <br />reasonable rate than one would on the open market. They <br />are then involved in the sales at all events with the basic <br />understanding that the majority of money raised will be <br />contributed back to the assisting organization. It may be <br />possible that this option could be utilized in Little <br />Canada subject to the appropriate arrangements between the <br />PAGE 76C <br />