1e. Liquor License Liability Insurance Code Amendment MEMORANDUM
TO: Todd Gerhardt, City Manager
CITY OF FROM: Bob Generous, Senior Planner
CHANHASSEN
DATE: August 9, 2010
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317 SUBJ: City Code Amendment
Chapter 10, Section 10 -23, Liquor License Liability Insurance
Administration
Phone: 952.227.1100 PROPOSED MOTION:
Fax: 952.227.1110
"The Chanhassen City Council approves the ordinance amendment to Chapter
Building Inspections 10 of the Chanhassen City Code pertaining to Liquor License Liability
Phone: 952.227.1180 Insurance."
Fax: 952.227.1190
Engineering BACKGROUND
Phone: 952.227.1160
Fax: 952.227.1170 In 2010, the Minnesota Legislature amended M.S. § 340A.409, subd. 1, to raise
Finance the minimum insurance requirements for retail liquor licenses. This amendment
Phone: 952.227.1140 added two additional levels of minimum liability insurance for pecuniary losses:
Fax: 952.227.1110 $50,000.00 for other pecuniary loss of any one person in any one occurrence, and
$100,000.00 for other pecuniary loss of two or more persons in any one
Park & Recreation occurrence. Rather than having to track the changes in state statute and amending
Phone: 952227.1120 the City Code every time the requirements change, we are proposing to reference
Fax: 952.227.1110
state statute.
Recreation Center
2310 Coulter Boulevard ANALYSIS
Phone: 952.227.1400
. Fax: 952.227.1404 City Code currently reiterates the requirements in state statute. In order to
eliminate the need for the City to amend our code when state statute is changed,
Planning & the proposed ordinance amendment would reference state statute. Following is
Natural Resources
Phone: 952.227.1130 the proposed change to section 10 -23 of the Chanhassen City Code.
Fax: 952.227.1110
Sec. 10 -23. Liability insurance.
Public Works
1591 Park Road Except as provided in M.S. § 340A.409, subd. 4, all applicants for any liquor
Phone: 952.227.1300 license or consumption and display permit must, as a condition to the issuance of
Fax: 952.227.1310
the license, demonstrate proof of financial responsibility with regard to liability
Senior Center imposed by M.S. § 340A.801, subd. 1, to the city, by providing proof of
Phone: 952.227.1125 liability /dram shop, general liability, and workers' compensation insurance
Fax: 952.227.1110 coverage as specified by M.S. § 340A.409, subd 1.
Web Site
www.ci.chanhassen.mn.us
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
Todd Gerhardt
August 9, 2010
Page 2
(a) Liability. Proof of financial responsibility shall be given by filing one of the following:
(1) A certificate that there is in effect for the license period an insurance policy issued by an
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recognized as an eligible surplus lines carrier pursuant to section 60A.206 or pool providing
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occurrence, $10,000.00 because of injury to or destruction of property of others in any one
occurrence, $50,000.00 for loss of m uns of support of any one person in any one
occurrence, and $100,000.00 for loss of mean of support of two or more persons in any one
occurrence;
$100,000.00 in cash or securities which may legally be purchased by savings banks or trust
funds having a market value of $100,000.00.
(b) Dramshop. An annual aggregate insurance policy for dram shop insurance of not less than
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policy aggregate.
(c) Workers' compensation insurance. The policy limits for workers' compensation insurance
shall be as provided for by state law.
(d) Additional requirements. For purposes of subsections (a) and (b) under this section, The city
shall be named as additional insured on the liability insurance policy. The liability insurance
insured or the insurer unless the canceling party has first given ten days' notice in writing to the
city of intent to cancel the policy. The insurance limits outlined in this section shall be effective
for license renewals and immediately on any new applications.
RECOMMENDATION
Staff recommends that City Council approve the ordinance amendment to Section 10 -23 of the
Chanhassen City Code.
ATTACHMENT
1. Ordinance Amending Chapter 10, Section 10 -23 Liability Insurance
g: \plan \city code\2010 \cc memo liquor license liability insurance.doc
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 10
LICENSES, PERMITS AND MISCELLANEOUS BUSINESS REGULATIONS
CHANHASSEN CITY CODE
THE CITY COUNCIL OF THE CITY OF CHANHASSEN, MINNESOTA ORDAINS:
Section 1. Section 10 -23 of the City Code, City of Chanhassen, Minnesota, is hereby
amended to read as follows:
Liability insurance.
Except as provided in M.S. § 340A.409, subd. 4, all applicants for any liquor license or
consumption and display permit must, as a condition to the issuance of the license,
demonstrate proof of financial responsibility with regard to liability imposed by M.S. §
340A.801, subd. 1, to the city by providing proof of liability /dram shop, general liability,
and workers' compensation insurance coverage as specified by M.S. § 340A.409, subd
1.
(1) A certificate that there is in effect for the license period an insurance policy
issued by an insurer required to be licensed under section 60A.07, subdivision 1, or
60A.206 or pool providing at least $50,000.00 of coverage because of bodily injury to
- .. 111 ..
more persons in any one occurrence, $10,000.00 because of injury to or destruction of
property of others in any one occurrence, $50,000.00 for loss of means of support of
twe- ermer-e- persons in any one occurrence;
(2) A certificate of the state treasurer that the licensee has deposited with the state
tr usurer $100,000.00 in cash or securities which may legally be purchased by
savings banks or trust funds having a market value of $100,000.00.
(b) Dramshop. An annual aggregate insurance policy for dram shop insurance of not less
than $300,000.00 per policy year to cover each person, ch occurrence, property damage
each occurrence, loss of means of support per person, loss of means of support each
occurrence, and policy aggregate.
(c) Workers' compensation insurance. The policy limits for workers' compensation
(d) Additional requirements. For purposes of subsections (a) and (b) under this section,
The city shall be named as additional insured on the liability insurance policy. The
liability insurance required by this section must provide that it may not be canceled for
any cause by either the insured or the insurer unless the canceling party has first given ten
days' notice in writing to the city of intent to cancel the policy. The insurance limits
outlined in this section shall be effective for license renewals and immediately on any
new applications.
Section 2. This ordinance shall be effective immediately upon its passage and
publication.
PASSED AND ADOPTED this 9 day of August, 2010, by the City Council of
the City of Chanhassen, Minnesota
Todd Gerhardt, City Manager Thomas A. Furlong, Mayor
(Published in the Chanhassen Villager on )
g: \plan \city code\2010\liq lic liability insurance amendment ordinance.doc
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