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5. Ordinance 1333 - Alcohol on City-Owned Propertyof Kalispell Post Office Box 1997 • Kalispell, Montana 59903-1997 • Telephone (406) 758-7700 • FAX (406) 758-7758 TO: Mayor Bill Boharski and Kalispell City Council FROM: Rich Hickel, Asst. City Attorney SUBJECT: Ordinance 1333 Establishing Rules Governing the Sale and Consumption of Alcoholic Beverages at Specified City -Owned Buildings MEETING DATE: August 16, 1999 BACKGROUND: This is the first reading of a proposed City Ordinance establishing requirements which lessees of the Hockaday Center, the Conrad Mansion, and the Central School Museum must adhere to for any events held on premises involving consumption of alcohol. Until now, differing policies have been followed at each location. The Ordinance is designed to bring uniformity to these city -owned buildings, while establishing insurance requirements staff deems necessary to provide liability exposure protection. Staff believes the lessees of the premises should provide requisite insurance. coverage prior to alcohol -related events at the city facilities. Recently a request was presented to staff by the Central School Museum to permit sales of alcoholic beverages on -site. The proposed Ordinance contemplates that all other Montana Department of Revenue requirements must be met as a precondition to such activities, in addition to the insurance requirements. The Ordinance leaves the appropriate amount of insurance coverage to the informed discretion of the City Manager. It is anticipated that minimum insurance requirements may need to be increased from time -to -time as the law develops. Therefore such minimum requirements will be established by the Manager after consultation with legal staff. In order to avoid any apparent conflicts between the current City Code section prohibiting alcohol in city -owned parks, the application of this ordinance is limited to the Hockaday Center, the Conrad Mansion, and the Central School Museum. The Buffalo Hills club house, for example, has a full -beverage licence already and therefore need not be covered by this ordinance. Mayor and City Council Page 2 August 16, 1999 ALTERNATIVES: Staff considered the following alternatives on this subject: (1) Continuation of past practice, which left all discretion with the lessees; (2) Complete prohibition of alcohol on these city -owned locations; and (3) Establishment of reasonable regulations designed to bring uniformity in approach to the facilities while shifting risk to the lessees. RECOMMENDATION: Adopting Alternative *3 is recommended by staff. The proposed ordinance, it is believed, strikes a balance between the city's desire to shift possible liability exposure to the lessees, while preserving the lessees opportunities to carry on social/funding raising functions on -site. FISCAL EFFECTS: Probably neutral. Sales of alcohol at catered events in the city are already regulated. The city does not expect this ordinance to result in any significant change to the number of such requests currently handled by the city. It is the intent of the ordinance that the shifting of risk to the lessees will reduce exposure on the part of the city as lessor. RespIctfully submitted, A � /Z, Zf Rich Hickel, /Jksyst. City Attorney C is Kukulski, City Manager RMH ORDINANCE NO. 1333 AN ORDINANCE REPEALING ORDINANCE NO. 811 § 1 AND ORDINANCE NO. 813 § 1 (§3-10.1, KALISPELL CITY CODE) BY PROHIBITING THE SALE, CONSUMPTION OR POSSESSION OF ALCOHOLIC BEVERAGES IN OR UPON ANY BUILDINGS OR OTHER PROPERTY OWNED OR OCCUPIED BY THE CITY AND UPON ANY STREET OR SIDEWALK, EXCEPT CERTAIN PREMISES AS APPROVED BY THE CITY MANAGER OR HIS DESIGNEE AND ESTABLISHING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, MONTANA, AS FOLLOWS: SECTION I. A) Except as otherwise provided in this code, no person shall sell, serve, dispense, consume or possess an open container of any alcoholic beverage in or upon any building or other property owned or occupied by the City or upon any street or sidewalk. B) Persons wishing to use the Hockaday Center for the Arts, the Conrad Mansion, or the Central School Museum for an event which involves the consumption or possession of, but not the sale of, beer and/or wine, shall first provide advanced written notice to the City Manager of the date, place, and time for any such event. Advance notice of not less than three (3) days shall be sufficient. C) Persons wishing to use the Hockaday Center for the Arts, the Conrad Mansion, or the Central School Museum for a function which involves the sale of beer and/or wine must first apply for and obtain a temporary sales permit from the City of Kalispell. In addition, the applicant shall comply with all statutes and regulations of the Montana Department of Revenue governing sales of beer and/or wine. Applications shall be filed with the City Clerk not later than ten (10) days prior to the event. D) The City Manager or, in his absence, his designee, may grant a temporary permit allowing the sale of beer and/or wine, if, considering the type of function, the Manager or his designee finds that: 1) The time, location and duration of the function are not likely to significantly interfere with public services; 2) The number and concentration of participants at the function are not likely to result in crowds exceeding limitations in the City fire regulations, or other significant inconven- ience to the residents of the surrounding neighborhoods; 3) Underage persons will not obtain alcoholic beverages served at the function, and the precautions proposed are likely to secure and supervise the area and the participants during the function; 4) The applicant agrees to limit the consumption under the permit to the hours between eleven A.M. and eleven P.M.; 5) The applicant agrees to be personally responsible for cleaning, trash disposal _or repairs necessary as a result of the event for which the permit was issued; 6) The applicant agrees to provide security for the permitted function commensurate with the recommendations of the Chief of Police; 7) The applicant agrees to indemnify and hold harmless the City, its employees and agents for all liability claims arising out of the event. E) The City Manager shall require the sponsor of any event involving the consumption or possession of alcoholic beverages or the applicant for a temporary beer and/or wine sales permit to obtain liquor/host, liquor and general liability insurance in such amount deemed necessary to protect the City's interest, and to name the City as an additional insured on any policies. F) 1) The City Manager may deny a permit on the grounds that approval would be detrimental to the public safety, health, morals, order or welfare by reason of the nature of the event, the likelihood that the event would create a public nuisance or result in the consumption of alcoholic beverages by minors, its location within the community, or the failure of the applicant to conduct a past event in compliance with applicable laws and regulations.