ATTACHMENT 1

 

AGENDA #4k

 

MEMORANDUM

 

TO:                  Mayor and Town Council

 

FROM:            W. Calvin Horton, Town Manager

                       

SUBJECT:      Serving Alcoholic Beverages at Special Events Downtown

 

DATE:                        April 25, 2005

 

 

The attached ordinance (Attachment 1) would amend the Town Code to permit serving and consumption of beer and unfortified wine at designated special events in Town parking lots and on the top level of the Wallace Parking Plaza.

 

The attached resolution (Attachment 2) would establish rules for serving of alcoholic beverages at special events at these locations.  Specific dates and locations for such events would require further Council approval.

 

We recommend consideration of the ordinance and resolution at the May 9, 2005 Council Meeting.

 

BACKGROUND

 

On April 5, 2005, the Council received a petition from the Downtown Economic Development Corporation asking the Council to “investigate and consider establishing an ordinance that would allow the sale and consumption of alcoholic beverages on Town property during specifically designated community events.”  The petition (Attachment 3) was referred to the Manager and Attorney for a response. 

 

DISCUSSION

 

Under the Town Code of Ordinances, the possession of open containers of alcoholic beverages and their consumption is prohibited in Town parking lots and Town parks.  The petition seeks an adjustment to the Code so that during special events in the downtown alcoholic beverages could be consumed in closed off and designated areas on Town-owned parking lots and on the top level of the Wallace Parking Plaza. 

 

Other cities in North Carolina have provisions for the sale and consumption of beer and unfortified wines at special events on municipal property.  Durham, Raleigh, Asheville, and Winston-Salem are among those municipalities that permit such sales.  Excerpts from these other municipal codes are attached (Attachment 4).

 

In order to accommodate such a request, two present provisions of the Town Code would need to be modified.  The attached Ordinance would make the modifications necessary for such activities to take place.  With the proposed Ordinance change, beer and unfortified wine could be sold, served and consumed at the Town’s larger parking lots downtown and on the top level of the Wallace Parking Plaza when there is a permit to do so as part of a permitted special event.  

 

In addition to these amendments to the Town Code, we believe it is appropriate for the Council to establish by resolution the rules and regulations for the service of alcoholic beverages at special events.  The attached resolution would establish basic standards for serving of alcoholic beverages and would delegate to the Manager the authority to implement the rules.  Specifically, the resolution would provide:

 

  1. The Downtown Economic Development Corporation, or other community based public or governmental organization sponsoring the event, would be responsible for applying for and receiving the necessary alcohol permits. 
  2. The sponsoring organization would be responsible for complying with all applicable state and local regulations for the sale, service, possession and consumption of alcoholic beverages and providing the town with a copy of any and all required permits or licenses for the sale, possession and consumption of alcoholic beverages.
  3. Alcoholic beverages would be poured into appropriate plastic or paper cups for serving and consumption and not provided for consumption in their original containers.
  4. Only alcohol provided and served at the designated site would be permitted to be consumed.  Persons would not be permitted to bring their own alcoholic beverages for consumption.
  5. The sponsoring organization would be required to secure insurance for the event, naming the Town as an additional insured. 
  6. The sponsoring organization would be responsible for establishing adequate perimeter controls to ensure that alcoholic beverages are not carried off the site approved for their consumption and for compliance with any other applicable laws, rules and regulations.
  7. The cost of additional security would be borne by the sponsoring agency.  The security plan would need to be approved by the Town Manager.  The Manager would apply standards currently provided for events at shopping center parking lots, with any additional appropriate standards required due to the special nature of these events.
  8. The sponsoring organization would be required to provide sufficient staffing who shall be responsible for ensuring that no alcoholic beverages are provided to underage or intoxicated persons. 
  9. The sponsoring organization would be responsible for keeping the event area clean of litter associated with the operation of the special event.

 

Finally, we propose that the specific dates, times and locations for these special events and the serving of alcoholic beverages at them should be approved by the Town Council.  The proposed ordinance calls for the Council to do so.  When the Downtown Economic Development Corporation further develops its plans for events that would include serving of alcoholic beverages, we would present these to the Council for approval and ask the Council to authorize the Manager to enter into an agreement to permit the events in accordance with the terms of the ordinance, policy resolution and any other standards the Council may establish.

 

CONCLUSION

 

We believe the petition presented by the Downtown Economic Development Corporation is reasonable and that adjustments can be made to the Town’s regulations to permit the proposed activities with appropriate controls and regulations.  We recommend that the attached proposed ordinance and resolution be scheduled for further consideration and possible enactment at the Council’s next regular business meeting, May 9.  This additional time period will provide an opportunity for the community to consider and comment on the draft changes. 

 

ATTACHMENTS

 

  1. Ordinance (p. 5).
  2. Resolution (p. 6).
  3. Petition from Downtown Economic Development Corporation (p. 8).
  4. Sample Ordinances from other cities (p. 9).

A RESOLUTION SCHEDULING THE MANAGER’S REPORT ON SERVING ALCOHOLIC BEVERAGES FOR FURTHER CONSIDERATION ON MAY 9, 2005 (2005-04-25/R-7)

 

BE IT RESOLVED by the Council of the Town of Chapel Hill that the Town Manager’s report regarding serving alcoholic beverages shall be placed on the Council’s May 9 agenda for further consideration.

 

This the 25th day of April, 2005.

ATTACHMENT 1

 

AN ORDINANCE AMENDING THE TOWN OF CHAPEL HILL CODE OF ORDINANCES TO PERMIT THE PURCHASE AND CONSUMPTION OF ALCOHOLIC BEVERAGES AT SPECIAL EVENTS ON TOWN PROPERTIES UPON DESIGNATION AND APPROVAL BY THE TOWN COUNCIL (2005-05-09/O-4)

 

BE IT ORDAINED by the Council of the Town of Chapel Hill as follows:

 

Section 1.  Section 3-5 of the Town Code is hereby renumbered Section 3-6.

 

Section 2.  Chapter 3 of the Town Code is hereby amended by adding a new Section 3-5 to read as follows:

 

“Section 3-5. Possession and Consumption of malt beverages and unfortified wines at special events in municipal parking lots and on the top level of the Wallace Parking Plaza.

 

Notwithstanding the provisions of Sections 3-2, 3-3, and 3-4, of  this Code, the sale, purchase, and possession of malt beverages and unfortified wines, the possession of open containers of malt beverages and unfortified wines and their consumption shall be lawful on Town Parking Lots 2, 3 and 5 and on the top level of the Wallace Parking Plaza when approved as part of a special event approved by the Town Council.  The Council shall by resolution establish rules and regulations for those events.”

 

Section. 3.  Paragraph (n) of Section 12-3. Rules and regulations for town parks. is hereby revised to read as follows:

 

            “(n)  Except as authorized and permitted by resolution of the Town Council adopted pursuant to Section 3-5 of this Code of Ordinances, Nno person shall use, consume or possess any alcoholic beverages, beer or wine within the any park.; nNo person shall use, consume or possess any narcotic drug or hallucinogen or any other controlled substance within any park without a valid physician’s prescription for the substance.”

 

Section 4.  This ordinance shall become effective upon adoption.

 

This the 9th day of May, 2005.

ATTACHMENT 2

 

A RESOLUTION ESTABLISHING RULES AND REGULATIONS FOR THE SERVING AND CONSUMPTION OF MALT BEVERAGES AND UNFORTIFIED WINE ON SPECIFIED TOWN PROPERTIES (2005-05-09/R-19)

 

BE IT RESOLVED by the Council of the Town of Chapel Hill that the following rules and regulations are hereby established for the service of malt beverages and unfortified wine on Town properties:

 

  1. Permits for the service and consumption of malt beverages and unfortified wine may be issued by the Town Manager for special events at the Town Parking Lots 2, 3 and 5 and the top level of the Wallace Parking Plaza upon approval by the Town Council of the events and their specific dates, times and locations.
  2. Permits to sponsor such events and provide alcoholic beverages may be issued to the Downtown Economic Development Corporation or other community based public or governmental organization approved by the Chapel Hill Town Council.
  3. The sponsoring organization shall be responsible for applying for and receiving all necessary permits for the service and consumption of alcoholic beverages.
  4. Only alcohol provided and served at the designated site may be consumed.  Persons may not bring their own alcoholic beverages for consumption.
  5. The sponsoring organization shall comply with all applicable state and local regulations for the sale, service, possession and consumption of alcoholic beverages and shall provide the Town with evidence of receipt of all required permits.
  6. Alcoholic beverages shall be poured into appropriate plastic cups for service and consumption and not provided for consumption in their original containers.
  7. The sponsoring organization shall secure and maintain general liability insurance applicable to the serving of malt beverages and unfortified wine at the event for which the permit has been obtained and shall name the Town of Chapel Hill as an additional insured on the policy with respect to claims arising out of the use of the Town’s property and the issuance of the permit by the Town.  A certificate evidencing such insurance shall be provided to the Town Manager’s office prior to the holding of the sponsored event.  Insurance shall be in minimum amounts of one million dollars ($1,000,000) (combined single limit for bodily injury and property damage liability).
  8. The sponsoring organization shall be responsible for the cost of additional security for the event.  A security plan shall be prepared and approved by the Town Manager before an event permit may be issued.  Permits shall be based on standards developed for outdoor events under Chapter 11, Article IX of the Town Code and appropriate additional standards due to the special nature of these events.
  9. The sponsoring organization shall provide sufficient perimeter controls to ensure that alcoholic beverages are not carried off the site approved for their service and consumption. 
  10. The sponsoring organization shall be responsible for compliance with any other applicable laws, rules and regulations.
  11. The sponsoring organization shall provide sufficient staffing to ensure that no alcoholic beverages are provided to underage persons or to intoxicated persons.
  12. The sponsoring organization shall be responsible for keeping the event area clean of litter associated with the operation of the special event.

 

BE IT FURTHER RESOLVED that the Town Manager is authorized to bring back to the Council for approval any requests for the holding of a special event under the terms of this resolution and enabling ordinance.

 

This the 9th day of May, 2005.