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<br />City Clerk Thieling explained Mansetti's only holds a wine license which includes a lower <br />coverage requirement according to State Statute; their coverage is double what they are required <br />to carry. She will check into the coverage of Spectators and Diamonds. <br /> <br />Councilmember Dehen stated his understanding is that the first number in the coverage is the <br />amount per person, and the second number is related to an accident that involves more than one <br />person. He would like to see a standard of at least $300,000 with an aggregate of perhaps <br />$300,000 also. He stated he has personal experience in suing several bars and liquor <br />establishments. The alleged intoxicated person can never bring a claim against the bar; it has to <br />be an innocent person, and the person that was purchasing or being served is not considered <br />innocent. An establishment can illegally sell to a person if they are obviously intoxicated, and <br />also if the person is perhaps underage. That is where there is the liability on a bar or liquor store. <br />Often the bar or dram shop will say they did not know someone was drunk when they came in, <br />so they often have to rely on the alcohol concentration of that individual after they are hurt as a <br />factor of how drunk the person was when they were served. Regarding the joint civil liability, <br />Minnesota law was changed in 2004, and in order for different bars to be jointly liable there has <br />to be at least 50% of fault on that bar. Conceivably the insurance rates given the change in the <br />law and the joint and civil liability should be coming down over the years because there will not <br />be as much exposure to the dram shops. <br /> <br />City Clerk Thieling indicated she received quotes from two different insurance companies to find <br />out what the financial hardship would be if the City were to require more than the State <br />requirement. One of the companies stated they will not allow an establishment to have higher <br />limits than what the State or the City requires. <br /> <br />Councilmember Dehen stated he talked with Jeff Wise of Wiser Choice Liquors this afternoon to <br />try to get an idea as to the dram shop rates he is paying at his liquor store. It seems those rates <br />would be different in a bar situation, as opposed to a dram shop. Mr. Wise had indicated he was <br />paying about $7,000 per year for general liability, which includes theft, vandalism and dram <br />shop. He was not able to give him a break down on the costs. Councilmember Dehen inquired <br />about the coverage amount required for the wine license. <br /> <br />City Clerk Thieling indicated she believes it is $25,000, which can be verified. <br /> <br />Mayor Gamec commented this may be something to review and look into a little more, but he <br />thinks it is more of a personal thing with people knowing they are covered. He questioned <br />whether the City should add that extra cost on at this time. <br /> <br />Councilmember Dehen questioned when it would be a better time to proceed. <br /> <br />Councilmember Strommen noted most.ofthe establishments in the City have insurance coverage <br />that far exceeds the City's minimum requirement. It does not seem that the incremental cost to <br />them would be large. <br /> <br />City Attorney Goodrich indicated any changes in the coverage requirements would be effective <br />in July. There would be a public hearing with notification to the license holders. <br /> <br />City Council Work Session / September 11, 2007 <br />Page 2 of 6 <br />