I3. Ord 1786 - Alcohol Permit ProcessCity Clerk's Office
(406) 758-7756 cityclerk@kalispell.com
P.O. Box 1997, 201 First Avenue East
Kalispell, Montana, 59903
www.kalispell.com
REPORT TO: Doug Russell, City Manager
FROM: Aimee Brunckhorst, CMC, City Clerk & Communications Manager
SUBJECT: Ordinance to amend the permit process and application for Parades, and
Special Events and regulating the service and consumption of alcohol on
city owned property
MEETING DATE: February 21, 2017
BACKGROUND: In 2013, the City Council adopted code amendments to Kalispell
Municipal Code 3-18, regulating the service and consumption of alcohol on city owned property.
These amendments provided a permit process for events at specifically listed city owned locations
and for not for profit entities wanting to hold events in a public street or right-of-way within the
commercial district. Other amendments further augmented the permit process. At the time of
these discussions, it was acknowledged that the permit process would likely need adjustments
over time.
In May, 2015, the City Council amended the municipal code related to alcohol consumption on
public places modifying the locations for the sale and consumption of alcohol at Woodland Park
and modifying the time frame for application materials to be submitted to the city for review.
The City Council held a work session August 8, 2016, where staff recommended separating the
alcohol addendum from the parade/special event permit, allowing for profit applicants to apply
for alcohol permits, and cleaning up the language throughout section 3-18 of the code and the
applications for the permit. At the work session, the City Council agreed that the alcohol
addendum should be separated from the permit. Council members however were still debating
whether the alcohol addendums should only be made available for not -for -profits or can be
opened up for application by for profits, and whether or not the alcohol addendum should be
administratively approved or Council approved.
On January 23, 2017, the City Council held another work session to further work out details
regarding amendments to the special event permit process and regulations regarding the sale and
consumption of alcohol on city owned property.
During the January 23rd work session, Council requested that staff bring forward an Ordinance
with the following amendments to Municipal Code 3-18:
• Separate the alcohol addendum from the parade/special event permit making it a city
alcohol permit.
• Change the approval process for alcohol permits from Council approved to administrative
approval.
• Match the date range restrictions related to the hockey rink and surrounding areas at
Woodland Park that is listed under code 3-18 2.B.7, to the date range in the lease
agreement with the Hockey Association.
• Check the lease agreements with the privately managed, city owned buildings to ensure
they are required to purchase their own liability insurance. If so, add these buildings as
exempt from the requirement to apply for a city alcohol permit.
• Add the Core Area Business Zone (B-3) to section 3-18 6. G. 2. and 3.
Flathead Valley Hockey Association Season Dates
The lease with the Flathead Valley Hockey Association does not specifically state a season
beginning and end date, but does state, "The first (electrical and gas) meter reading will be
October 13, 2014 at the occupancy of the FVHA season."
Insurance
Staff reviewed the lease agreements related to liability insurance with the privately managed city
owned buildings. All lease agreements with the exception of the Conrad Mansion do have
insurance requirements and state that the lessee shall hold the city harmless, but not all
specifically mention liability insurance. The city recommends an added provision in this section
of the code specifically stating the requirement for lessee's to provide liability insurance and
name the city as an additional insured party.
Commercial District
Per Council request to clarify the meaning `commercial district' within this section of the code,
staff has changed the term `commercial district' to read `13-3 and B-4 zones'.
Private vs. Not -for -Profit Businesses
Council members are still debating whether city alcohol permits should only be made available
for not -for -profits or can be opened up for application by for profit businesses. If the Council
would like to open up alcohol permits for all businesses whether for profit or not for profit the
following amendment is recommended:
Motion to amend Exhibit A of the Ordinance, within Section 3-18 D. adding the words "business
or" to the beginning of the first sentence so the sentence would read: "A business or a not -for -
profit entity may apply to utilize a street or right-of-way within the B-3 or B-4 business zones of
the City for an event in which alcoholic beverages are to be sold, served, consumed or
possessed. "
RECOMMENDATION: City staff recommends that the City Council approve Ordinance 1786,
An Ordinance amending Chapter 3 of the Kalispell Municipal Codes and Codified at KMC 3-18,
Consumption in Street, Alley, or Public Place Prohibited; Exceptions, Declaring an Effective Date
and Authorizing the City Attorney to codify the same.
ATTACHMENTS: Ordinance 1786 with Exhibit A
Map showing B-3 and B-4 Zones
ORDINANCE NO. 1786
AN ORDINANCE AMENDING CHAPTER 3 OF THE KALISPELL MUNICIPAL CODES AND
CODIFIED AT KMC 3-18, CONSUMPTION IN STREET, ALLEY, OR PUBLIC PLACE
PROHIBITED; EXCEPTIONS, DECLARING AN EFFECTIVE DATE AND AUTHORIZING
THE CITY ATTORNEY TO CODIFY THE SAME.
WHEREAS, pursuant to Kalispell Municipal Code 3-18 the City of Kalispell prohibits the sale and/or
consumption of any alcoholic beverage in or upon any building or other property owned
or occupied by the City or upon any street or sidewalk unless such action is within the
permitted uses authorized through a special public event permit issued by the City; and
WHEREAS, members of City Council find it necessary to make adjustments to KMC 3-18 to clarify
the permit process for special events, provide exemptions for certain property owned by
the City but privately managed, adjust the date range for which an alcohol permit may be
applied for at the hockey rink and surrounding grounds at Woodland Park, and change
the approval process for alcohol permits to administrative.
WHEREAS, the Kalispell City Council recently created a new Core Area Business (B-3) land use zone
that would be appropriate to add to the zones listed in KMC 3-18 6. G. 2. and 3. that are
exempt from Montana Code Annotated Title 16, distance requirements between licensed
liquor establishments and a church, synagogue or other place of worship, or a school.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF KALISPELL
AS FOLLOWS:
SECTION 1. The City of Kalispell Municipal Code is hereby amended as set forth in
Exhibit "A", attached hereto and incorporated fully herein by this
reference.
SECTION 2. The City Attorney is hereby authorized and directed to recodify this
Ordinance.
SECTION 3. This Ordinance shall take effect thirty (30) days after its final passage.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE
CITY OF KALISPELL THIS 6TH DAY OF MARCH, 2017.
Mark Johnson
Mayor
ATTEST:
Aimee Brunckhorst, CMC
City Clerk
Exhibit "A"
3-18 Consumption in Street, Alley, or Public Place Prohibited; Exceptions.
A. 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 unless such action is otherwise authorized as set forth in this
ordinance.
B. Exceptions for Leased or Managed City Properties:
Certain City owned properties, as set forth in this paragraph, are leased and/or managed
by separate entities. If the entity that leases or manages one of these properties elects to
allow alcoholic beverages to be sold, served, consumed or possessed upon such property
they must notify the City of this election and provide the City with proof of liability
insurance, including an alcohol insurance addendum and all necessary Department of
Revenue permissions. The minimum liability coverages shall be no less than seven hundred
fifty thousand dollars ($750,000.00) per occurrence and one million five hundred thousand
dollars ($1,500,000.00) aggregate and the City must be designated as the additional named
insured upon the policy. This paragraph shall apply to the following City owned properties:
1. Buffalo Hill Golf Course;
2. Hockaday Center for the Arts and its grounds;
3. Kalispell Chamber of Commerce (Depot) Building and leased grounds;
4. Museum at Central School and its grounds;
5. Conrad Mansion and its grounds.
C. Exceptions for Other City Owned Properties:
Entities seeking to utilize certain City owned properties, as set forth in this paragraph, for
events in which alcoholic beverages are to be sold, served, consumed or possessed upon
such property must first timely submit an application for a city alcohol permit to append to
the special event permit for use of the City owned property. This shall apply to the use of
the following City owned property:
1. Depot Park;
2. Lakers Ball Fields;
3. The hockey rink and surrounding grounds between the dates of October 14th and
March 21st, at Woodland Park.
D. Exceptions for Streets and Right -of -Ways of the City within the B-3 and B-4 Zones.
A not for profit entity may apply to utilize a street or right-of-way within the business 13-
3 and B-4 zones of the City for an event in which alcoholic beverages are to be sold,
served, consumed or possessed. The entity must first timely submit an application for a
city alcohol permit to append to the application for a special event permit for use of the
City streets and right-of-ways.
E. Application Process and Requirements.
An application form for a special public event permit and City alcohol permit may be
obtained from the City Attorney's office or online at the City's website and shall be
timely submitted to the City Attorney's office. The application form will require certain
information such as the date, place, time, and any city services required for such event.
An application for an event in which alcohol is distributed or consumed outdoors shall
include a detailed map specifically showing the proposed location of a fenced area in
which all such distribution and consumption shall occur and be monitored. All permit
applications must be submitted in adequate time for all necessary city departments to
review, comment and prepare for the event. All pernuts will be administratively
considered and approved or disapproved by the City Manager.
The applicant for a City alcohol permit shall comply with all statutes and regulations of
the Montana Department of Revenue governing sales of alcohol and shall ensure that a
trained volunteer or employee in one of the preapproved Montana Department of
Revenue training courses is present at the point of sale and service.
F. The City Manager may grant a City special event and alcohol permit, if, considering
the type of function, he/she 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
inconvenience to the residents of the surrounding neighborhoods;
3. Underage persons will not obtain alcoholic beverages served at the function, and
the precautions proposed, such as fencing barriers to create separation, use of ID
bracelets, and manned security, are likely to adequately 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 11:00 a.m. and 11:00 p.m.;
5. The applicant agrees to pay such fees and damage deposit to reimburse the City
for its costs of solid waste pick up and removal and barricade placements and comply
with all rules set out in the permit regarding the treatment of solid waste, material that
may be used, e.g., no glass bottles;
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 as well as provide liability
insurance coverage in the amount of seven hundred fifty thousand dollars
($750,000.00) per occurrence and one million five hundred thousand dollars
($1,500,000.00) aggregate (along with an alcohol insurance addendum) naming the
City of Kalispell as an additional named insured.
G. Not -for -profit entities may apply for and the City Manager may approve a seasonal
special public event permit for public events that recur in the same location in the
commercial district over a period of time not to exceed four (4) months.
H. The City Manager may deny a permit on the grounds that approval would be
detrimental to the public safety, health, order or welfare by reason of the nature of the event,
or result in the consumption of alcoholic beverages by minors, or the failure of the applicant
to conduct a past event in compliance with applicable laws and regulations. The request
may also be denied if another event has previously been scheduled for that location on the
same day and time, or if the event would unreasonably interfere with normal activities and
customary and general use and enjoyment of the facility.
I. The City supplants the provisions of subsection (1) Section 16-3-306, of Montana Code
Annotated as follows:
1. With respect to restaurant beer and wine (RBW) licenses as authorized by
Montana Code Annotated Sections 16-4-420 through 16-4-423 only, the City supplants
the provisions of subsection (1) Section 16-3-306, of Montana Code Annotated, by
eliminating entirely the distance requirement between licensed establishments and a
church, synagogue or other place of worship, so long as such licensee is located within
the General Business B-2, Core Area Business B-3, Central Business B-4, or
Industrial -Commercial B-5 City land use zones.
2. With respect to any level of liquor licenses, as authorized by Montana Code
Annotated, Title 16, the City supplants the provisions of subsection (1) Section 16-3-
306, of Montana Code Annotated, by eliminating entirely the distance requirement
between licensed establishments and a church, synagogue or other place of worship, so
long as such licensee is located within a Core Area Business B-3, or Central Business
B-4 land use zone.
3. With respect to any level of liquor licenses, as authorized by Montana Code
Annotated, Title 16, the City supplants the provisions of subsection (1) Section 16-3-
306, of Montana Code Annotated, by reducing the distance requirement between
licensed liquor establishments and schools to three hundred (300) feet in the General
Business B-2, Core Area Business B-3, Central Business B-4, and the Industrial -
Commercial B-5 City land use zones.
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