ITEM 1 Prairie FestivalITEM 7
TO: Otsego City Counci
FROM: Ross Demant, Parks and Recreation Manager
DATE: March 19, 2014
RE: Otsego Prairie Festival
BACKGROUND
With the addition of a band and fireworks in the evening at the Otsego Prairie Festival,
there have been inquiries about the option of having beer served during the later
portion of the event. The Otsego Lions Club has discussed the opportunity before and
has approached the Otsego Prairie Festival Committee to explore the option to serve
beer during the band performance and fireworks at this year's event. The Prairie
Festival Committee has discussed the Otsego Lions interest in providing beer sales and
think that it could be offered only after the core Prairie Festival activities end at 5:OOPM
in conjunction with the band and fireworks.
ANALYSIS
The Lions organization has been providing beer sales at events like the Prairie Festival
for many years. The Lions use these events has fundraisers towards supporting local
initiatives. The Otsego Lions have said if the City Council would allow them to serve
beer at the Prairie Festival, they would work closely with the Rogers Lions Club which
has experience with the Rockin' Roger's Days serving beer throughout that event.
City staff, including the City Attorney, have put together the following requirements for
the Otsego Lions Club to follow if they are to be allowed to serve beer:
• Dram Shop Insurance in an amount approved by the City Attorney.
• Liability Insurance covering the organization and all employees, volunteers.
• Agreement with City indicating when and where they are allowed to serve and
hold harmless and indemnify the City including any damages above their
insurance limits as approved by the City Attorney.
• Proof of Worker's compensation insurance if employees are involved.
• Acquisition of a State and/or City liquor license and training for the individuals
that would be involved with the sale or serving of alcohol.
• Plan for insuring that minors do not get access to alcohol.
• Additional security
• Establishment of a "beer garden" located adjacent to the stage and enclosed
with a temporary fence to contain the alcohol to a physically defined and
controlled area.
City staff has further consulted with the League of Minnesota Cities about additional
liabilities and insurance needs for the City if alcohol is being served during the Prairie
Festival. The LMNC responded that no additional insurance would be required as long
as the above requirements of the Otsego Lions were met. There may be additional
requirements from the State of Minnesota that the Lions Club would have to follow as
part of a liquor license if they are allowed to serve beer that are not outlined in this
memo.
CONCLUSION
All discussions to date either with the Otsego Lions or Prairie Festival committee have
emphasized that the decision on allowing alcohol sales as part of the Prairie Festival is a
City Council decision. City is requesting direction from the City Council on whether to
pursue having the Otsego Lions Club serve beer at the 2014 Otsego Prairie Festival. If
the City Council approves of beer sales, City staff will work with the Otsego Lions as to
their obligations as to the requirements outlined herein and ensure that those
requirements are met for beer sales to occur on the date of the Prairie Festival.
C. Lori Johnson, City Administrator
Tami Loff, City Clerk
Andy MacArthur, City Attorney
Dan Licht, City Planner
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