Special Events with Alcohol

CITY COMMISSION AGENDA MEMO September 13, 2018

FROM: Jared Wasinger, Assistant to the City Manager Katie Jackson, City Attorney

MEETING: September 18, 2018

SUBJECT: Continued Discussion on Amending Special Events with Alcohol

PRESENTER(S): Jared Wasinger, Assistant to the City Manager Katie Jackson, City Attorney

BACKGROUND

In February 2018, City Administration was approached by the Greater Manhattan Community Foundation to consider possible changes to the City’s Code of Ordinances as it relates to special events with alcohol in Blue Earth Plaza. A summary memo (enclosed) providing an overview of the City’s current ordinances as they relate to special events with alcohol at Blue Earth Plaza and other areas of the City was provided to the City Commission in March 2018. The City Commission provided comments regarding possible changes during a discussion item that was held during the June 19, 2018, City Commission meeting.

Currently, consumption of alcohol during special events in Blue Earth Plaza (as well as Aggieville and Downtown) is limited to a fenced off “beer garden” where only participants 21 years or older are able to enter, and no alcohol can be consumed outside of the beer garden. The Young Trustees approached the City to change those rules relating to special events in order to accommodate their annual MHK Chili Cook Off. Their request included eliminating the beer garden requirement, which would allow alcohol to be consumed throughout the entire special event area (this would mean patrons above and below age 21 would not be separated as they are now).

The Young Trustees are also seeking to include streets and sidewalks within the event area that alcohol is consumed. State law requires the City to treat City park land and City facilities differently than city streets, sidewalks and alleys. In the state of Kansas, for a special event with alcohol to occur on a city street, sidewalk or alley, a series of events must occur. First, the applicant must complete a Special Event Temporary Permit for the Department of Revenue (DOR). Next, the applicant must apply for a special event permit with the City (attaching their DOR application), which goes through an administrative review through Customer Service, Public Works, the Riley County Police Department (RCPD), the City Clerk and City Manager's Office. If the special event application meets the requirements set forth in the Ordinance pertaining to special events and meets the state requirements for Special Event Temporary Permits, then the City Commission can adopt an event-specific special event ordinance for the day of the event to allow alcohol on the city street(s), sidewalk(s) and alley(s). If the event-specific special event ordinance is passed by the Commission, it is attached to the application for the Department of Revenue, and must be sent to the state at least 14 days prior to the event for approval. Such a process can occur today, however, the consumption of alcohol would only be able to occur within a fenced off beer garden per the City's current ordinance relating to special events with alcohol.

DISCUSSION

During the June 19, 2018, discussion item the City Commission considered three options in relation to the City's ordinance and where alcohol can be consumed within a special event area:

 Option (1) maintain the current approach, which requires a smaller fenced “beer garden” that only 21+ can enter within the larger special event area;  Option (2) maintain the requirement for a fenced “beer garden” as the only place where alcohol can be served/consumed within a special event area, but allow patrons of all ages inside the beer garden; or  Option (3) eliminate the beer garden requirement and allow alcohol to be consumed throughout the special event area and accessed by all ages.

A majority of City Commissioners gave feedback in favor of Option (3) to eliminate the beer garden and bring forward an amendment to the special event ordinance.

For the September 4, 2018, legislative meeting, City Administration drafted a a first reading of an ordinance to amend Article IV Chapter 31 of the Code of Ordinances, eliminating the beer garden requirement for special events. This was the primary change of the ordinance, along with other changes to clean up legal language and provisions from the original ordinance that was adopted in 2011. The item was tabled, as Commissioners identified three concerns with provisions of the ordinance that they wanted clarification/modification on.

The following concerns are listed below, as well as how they plan to be addressed in a newly proposed ordinance. Furthermore, as we researched the concern about how to distinguish between different licensees serving into a special event area, we identified another issue requiring feedback. City Administration is seeking further clarification from the City Commission before bringing back a first reading, which City Administration intends to do at the September 25, 2018, Special Legislative Meeting. Commissioner concerns from the first reading on September 4:

 Special Event Time Limit: An amended provision from the draft ordinance from September 4, 2018, stated that the special event shall be for no more than 12 hours, during daylight hours only, and that the City Clerk could extend the hours of the special event to 11:00 p.m. on Fridays and Saturdays. This language was utilized from another provision pertaining to block parties, but multiple concerns were raised regarding special events in Aggieville that go until 2 a.m. when bars close, such as the New Year's Eve Ball Drop. Discussion during the September 4 meeting resulted in consensus among a majority of the City Commission allow for the City Clerk (for events without alcohol) or the City Commission (when considering special events with alcohol) to allow a special event's hours to be extended to 2:00 a.m. subject to their approval. This will be reflected in the amended ordinance at the first reading.  Specific boundaries for Aggieville, Downtown and Blue Earth Plaza where special events with alcohol are allowed: The City Commission requested a more specific description of the boundary limit where where an applicant could apply for a special event permit to allow the presence, service, or consumption of alcoholic beverages. Note that the boundaries do not mean that the applicant will apply for a special event area that includes the whole district; only that the special event can only occur on City property within those districts. The boundary for Aggieville is the C-3, Aggieville Business District, as defined by the Manhattan Zoning Regulations. A map of the Aggieville District boundary is enclosed. The boundary for Downtown is defined as the C-4, Central Business District, as defined by the Manhattan Zoning Regulations. A map of the Downtown District boundary is enclosed. The current ordinance today allows special events with alcohol in these zoning districts, and remains unchanged, but maps have been provided as attachments for clarity, with all city streets, sidewalks and alleys highlighted. The Blue Earth Plaza Boundary will be the only boundary that is specifically detailed in this provision of the ordinance due to its unique nature and it not being a specific zoning district. The current ordinance today defines this location as "the public park in the Downtown Entertainment District PUD." In order to meet the request of the Young Trustees wishing to extend the boundary into the adjacent public streets and sidewalks on S. 3rd Street and Blue Earth Place, this will be amended to be more specific by identifying the adjacent streets and sidewalks. Furthermore, the private drive and parking lot owned by the City, south and southeast of the Flint Hills Discovery Center, have been included in this boundary to accommodate future growth of the annual Flint Hills Festival. In order to allow consumption of alcohol on City property, Sec. 4-2 (f) of the Code of Ordinances will also be amended. This ordinance allows the consumption/possession of alcohol pursuant to K.S.A 41- 719 in the following public places or public property: Sunset Zoo, Manhattan Regional Airport terminal, Union Pacific Depot, Wefald Pavilion, Blue Earth Plaza, and the Flint Hills Discovery Center (and now, if approved, the drive south of the FHDC and the southeast lot). A map of the Blue Earth Boundary for special events with alcohol is also enclosed. These specific maps will be provided to any applicant seeking to apply for a special event with alcohol permit within any part of these three areas, and the applicant will have to specifically identify the boundaries of the special event within those districts.  Distinct containers for alcoholic beverages if multiple vendors exist: The current ordinance states "if more than one vendor or licensee is providing the sale or service of alcoholic beverages, each vendor or licensee must sell or serve their alcoholic beverage in distinct containers that identify the vendor or licensee." The purpose of this provision is to help identify where alcohol may have been obtained if a possession/consumption violation occurs, such as a minor in possession. It is important to note that this evidence would not be conclusive, since an individual could use a discarded cup and fill it with alcoholic liquor that did not come from the business listed on the cup. Although this specific provision has been removed, City Administration retains the ability to require different and distinct cups from the vendors if needed for the special event. RCPD and City Administration will review the application and determine if distinct containers for each identified vendor/licensee should be required, and make such recommendation to the City Commission as part of the special event's approval. The importance of distinguishing between vendors may vary, based upon the vendors within the event and those adjoining the event, which is discussed in more detail below. Although vendor-specific cups may not always be required, the ordinance still requires alcoholic beverages to be served in cups that are distinct from cups of non-alcoholic beverages. No glass is permitted on city streets.

New Issues Involving Adjacent Businesses Extending Premises into the Special Event Area.

If the beer garden concept is eliminated, and alcohol is permitted throughout the special event area on city streets, then state law permits any adjacent licensed drinking establishment the ability to temporarily extend their licensed premises into the special event area. To do so, the drinking establishment must provide a copy of the special event with alcohol ordinance and an application to Alcohol Beverage Control (ABC) at least 10 days prior to the special event. The City does not get to approve this application, other than to say whether it is permitted by zoning. ABC does not evaluate whether the drinking establishment is actually part of the special event permit, nor does ABC require the drinking establishment to notify the special event permit holder that they are extending their premises into the special event area. This means that neither the special event permit applicant, nor City Administration, may know the location or number of establishments that plan to extend their premises into the special event, until 10 days before event, which could lead to inadequate planning and impact the special event security plan.

Under the current ordinance framework, the special event regulations relating to crowd control, wristbands, service of alcohol, etc., that apply to the special event permit holder do not apply within the adjacent business premises, because neither the premises owner nor the premises is part of the special event permit that was approved. If an adjacent bar sends patrons into the special event area without a wristband, then the only remedy under the current ordinance is to shut the special event down.

Furthermore, the state law holds both the special event permit holder and the adjacent drinking establishment "jointly liable" for any alcohol violations that occur within the special event area. This means the special event permit holder could be held liable for certain alcohol-related violations that are committed by the adjacent establishment over which it has no control. ABC stated that cities have the ability to manage how the special events function, and in the absence of such regulation, the state law assigns the risk of the event to be jointly borne by the special event holder and the adjacent licensees, even if they are not working together for the special event.

The adjacent drinking establishments have a right, under state law, to temporarily extend their premises into the special event area, subject to the reasonable regulation by the City. The Legal Department spoke to a few of the other Kansas cities that allow alcohol on city streets as part of special events. Most cities have not regulated this issue, because of the nature of their cities' downtown business districts. If the special event holder does not want adjacent drinking establishments as part of their special event, the special event holder simply does not run the boundaries of their special event outside their door. This is an option if the bars are not closely clustered, or if the special event holder wants to only work with one bar. This is not possible in a dense area like Aggieville, in which Moro Street is bordered by numerous drinking establishments that could elect to join the special event on their own. Wichita is the only city staff found that attempts to regulate this issue; its ordinance was changed after a special event holder had a drinking establishment extend its premises into the special event area that impacted the special event in a negative way.

This state law complexity requires new input from the City Commission on the framework of this ordinance, if the beer garden concept is eliminated. There are at least two options:

1. Do not regulate the adjacent drinking establishments in any way. A special event holder who defines the special event area to include adjacent bars bears the risk of those bars electing to join the special event. The special event holder and the adjacent bar are jointly liable for any state-law alcohol violations; however, only the special event holder is responsible for ensuring that City rules are enforced (wrist bands, distinctive cups, etc). A special event holder who does not want to bear this risk could (a) hold a special event that does not include alcohol; (b) opt for a beer garden that does not border any drinking establishment; or (c) move the entire special event boundary so it does not border any drinking establishment.

2. Change the framework of the City's ordinance to be similar to Wichita's ordinance. Wichita requires a special event applicant to notify adjacent businesses at least six weeks prior to the event, and then the applicant must list any adjacent drinking establishment that desires to join the special event on the special event permit application. Then, Wichita considers the adoption of a temporary entertainment district ("TED") that includes the public property and any adjacent private drinking establishment that wants to join the special event. All alcohol-service requirements (wristbands, distinctive cups) then apply both on the street and within the adjacent bar during that special event. Because Wichita creates a TED, if an adjacent bar that is not included within the TED boundary tries to enter the special event through the later-issued state permit, Wichita is able to deny their inclusion from a zoning perspective since their premises are not included in the TED. Again, zoning is the only basis a city can use to deny the extension of a premises into a special event area.

Several City Commissioners had questions about the issues that may be created for a special event that involves alcohol served from adjacent businesses. If the City Commission desires to have a full understanding of the special event at the time of its approval, in order to ensure adequate planning and security (barriers, crowd control, etc), then staff would have to reformulate the ordinance to something similar to Wichita's TED. The current ordinance only anticipates a special event occurring on public property; the ordinance's application would have to expand to cover "community events" that are on public and private property, as Wichita has done. This approach also allows the City requirements related to the service of alcohol (wristbands, distinctive cups) to apply to the adjacent bars who desire to serve into the special event. If an adjacent bar does not want to follow these rules, they do not have to be a part of the special event. However, they could not allow their patrons to carry alcohol from their bar into the special event).

Staff would also appreciate City Commission feedback on clean up. In studying how other cities in Kansas and elsewhere regulate special events with alcohol on their streets, staff found that it is fairly common for the ordinance to include some type of clean-up deposit. Under the ordinance, the permit holder has to clean up the area, but the Manhattan does not require the permit holder to post any type of deposit if they fail to do so. While the City has not had many issues with post-event street cleanup, the City charges higher deposits when private events at City facilities involve alcohol. Eliminating the beer garden requirement triggers the participation of adjacent businesses, which in turn could change the magnitude and impact of any event. If the City did not do any clean-up, the deposit could be returned.

It is important to stress that, if this ordinance is eventually amended, ALL special event with alcohol permit applications on public streets, sidewalks, and alleys will be vetted by City Administration and RCPD, and ultimately considered by the City Commission for approval. The City Commission may set forth requirements for the applicant (and for participating adjacent businesses, if the City Commission directs changes to the ordinance) to ensure that necessary safety requirements are met pertaining to traffic flow, street closures, barricades, access/entry points, control of off-premise consumption, control of consumption by minors, and all other requirements set forth in this ordinance. This is a lengthy and stringent process for applicants, who must meet state and local requirements in order to be approved, which will include providing and maintaining the required liability insurance for the special event that names the City as an additional insured.

FINANCING

There is no direct financial impact to amending this ordinance.

ALTERNATIVES

It appears the Commission has the following alternatives concerning the issue at hand. The Commission may:

1. Remove the item from the table and continue to provide discussion and feedback on an ordinance amending Article IV of Chapter 31 of the Code of Ordinances to remove the fenced off "beer garden" requirement for special events with alcohol in Aggieville, Downtown, and the Blue Earth Plaza. 2. Decline to remove the item from the table.

RECOMMENDATION

City Administration recommends the City Commission remove the item from the table and continue discussion and feedback regarding an ordinance amending Article IV of Chapter 31 of the Code of Ordinances to remove the fenced off "beer garden" requirement for Special Events With Alcohol in Aggieville, Downtown, and the Blue Earth Plaza.

POSSIBLE MOTION

No motion is required as this is a discussion item.

Enclosure(s): 1. Aggieville C-3 - Boundary for Special Events 2. Downtown C-4 - Boundary for Special Events with Alcohol 3. Blue Earth Plaza Special Event Boundary 4. Original Summary Memo re Local and State Laws 5. 9-18-18 Discussion Special Events with Alcohol

Blue Earth Plaza Special event Boundary.

Highlighted areas of S. 3rd Street and Blue Earth Pl. are the public streets and adjacent sidewalks where alcohol could be consumed dependent upon approved application. Drive and lot south of Flint Hills Discovery Center are private property owned by the City. Colorado St. t e e r t S

d r 3

. S

Blue Earth Pl.

Parking Garage

Fort Riley Blvd.

TRANSMITTAL NOTE

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DATE: March 29, 2018

TO: Ron Fehr, City Manager

FROM: Jared Wasinger, Assistant to the City Manager Katie Jackson, City Attorney

SUBJECT: Special Event Permits with Alcohol in Blue Earth Plaza

The Greater Manhattan Community Foundation Young Trustees has approached City Administration to examine possible changes to the City’s Code of Ordinances as it relates to restrictions on special event permits with alcohol held in Blue Earth Plaza. The Young Trustees have provided a letter to the City Commission outlining their request (attached). The Young Trustees recently held their inaugural MHK Chili Cook Off on November 4, 2017, in the Blue Earth Plaza. The fundraising event was held to raise money for local social services agencies, and the group intends to hold the event annually.

This memo will provide an overview of the City’s current ordinances as they relate to special events with alcoholic liquor at Blue Earth Plaza, and outline possible changes to the City Code allowed by state law relating to special events. Alcohol is regulated by a complex framework of state statutes, state administrative regulations, and City ordinances. This memo discusses general parameters, but specific changes require specific analysis at the time of adoption.

State Regulation of Alcoholic Liquor

The State of Kansas regulates the sale, consumption and possession of alcoholic liquor through Chapter 41 of the Kansas Statutes Annotated and applicable Kansas Administrative Regulations. Cities are limited in how they can regulate alcoholic liquor; any ordinance that conflicts with state law is null and void. The State has given cities the ability to regulate alcoholic liquor, to a certain degree, in some areas such as licensing, hours of operation and locations. Nonetheless, any proposed change to City ordinances will have to be reviewed in light of applicable state laws and regulations.

K.S.A. 41-719 allows three approaches for consumption of alcoholic liquor on City property. In sum:

1) On City streets, alleys, or sidewalks, at a special event. The City must approve the special event by ordinance and by permit, and the State issues a special event temporary permit. The special event’s boundaries must be “clearly marked by signs, a posted map or other means which reasonably identify the areas in which alcoholic liquor may be possessed or consumed.” Alcohol can’t be possessed or consumed inside vehicles in such area. The temporary permit holder and any drinking establishment licensee who has elected to extend the licensed premises into the special event area are jointly liable for violations of all laws relating to sale and consumption of alcoholic liquor.

2) Indoor or outdoor common consumption areas, per K.S.A. 41-2659. A common consumption area (CCA) allows the possession and consumption of alcoholic liquor within an otherwise unlicensed area. The sale of alcohol is prohibited within the CCA, except from a licensed premises contained within or immediately adjacent to the CCA, or by a licensed caterer during a catered or special event. The City must adopt an ordinance to create common consumption areas (CCAs) in the City and to establish the rules related to CCAs (zoning districts, size, security, noise, trash cleanup, etc). The CCA can be operated by a governmental entity, organization or individual. If the City is the owner/operator of the CCA, the City should create the CCA by ordinance rather than apply for its own permit. If the City wants to allow non-City entities to create CCAs, then the City should adopt an enabling ordinance to create a review process (a CCA permit). The CCA owner/operator must also receive a State permit. The state law requires that the CCA permit holder must accept liability for “any and all violations with the CCA.” The CCA must be marked with a physical barrier or “apparent line of demarcation.”

3) On specified City property that has been exempted by ordinance.

Current Ordinances and Regulations

The City currently has ordinances in place to allow for alcohol consumption on City property per the State’s approaches (1) and (3). Article IV of Chapter 31 regulates special events with alcohol on City property, and Sec. 4-2 of the City Code permits alcohol upon specified City property.

Sec. 31-159 allows for special events upon City streets, sidewalks, parking lots, public plazas or other City property or facilities. If the event includes alcohol, it can only be held within the following areas: Aggieville Business District, Downtown Business District (including the Manhattan Town Center Plaza), and the public park in the downtown entertainment district PUD.

The City Clerk can approve a special event permit if it meets the ten standards of issuance set forth in Sec. 31-159(a). In general, these standards of issuance ensure that the special event will not be unreasonably dangerous or uncontrolled. One standard states that a special event cannot be for solely advertising or commercial purposes. Another standard states that if the special event is in a park or adjacent to a park, then the special event cannot interfere with other park events or normal

park operation. Also, if the special event involves alcohol, the alcohol must be served by a licensed caterer and the permit holder must provide a crowd control and security plan.

Although the City Clerk can administratively approve special events, a special event that involves alcohol will often also need the City Commission’s approval. If the special event is located on City property other than those exempted in Sec. 4-2 of the City Code, then the City Commission must adopt an ordinance authorizing the alcohol in the special event area.

Sec. 4-2 prohibits the consumption or possession of alcoholic liquor and cereal malt beverages in most public places. The Code has been amended over time to allow the use of alcoholic beverages in the following public locations: anywhere within the Sunset Zoo park, inside the Manhattan Regional Airport passenger terminal, inside the Union Pacific Depot, inside the Jon and Ruth Ann Wefald Pavilion, inside the Flint Hills Discovery Center or on its outdoor terraces, and anywhere within Blue Earth Plaza. Thus, the City Commission must adopt a specific ordinance to permit alcohol if the special event is located on any City street, alley or sidewalk, or if the special event is anywhere other than the specifically exempted areas above, including if the special event with alcohol will be outside one of the designated indoor areas. For example, the City Commission would have to adopt an ordinance to allow alcohol outside the Wefald Pavilion.

Sec. 31-160(i) lists the following requirements regarding special events with alcohol:  The alcoholic beverages shall be served in containers that are distinctly different than those provided for non-alcoholic beverages.  The alcoholic beverages shall not be sold or served in pitchers, buckets, or carafes.  No more than two (2) alcoholic beverages may be sold or served to a person at the same time.  If more than one vendor or licensee is providing the sale or service of alcoholic beverages, each vendor or licensee must sell or serve their alcoholic beverages in distinct containers that identify the vendor or licensee.  Only persons over the age of twenty-one (21) shall be permitted within the area designated for the presence, service, or consumption of alcoholic beverages. Persons permitted within the designated area shall be issued a wristband or other identifying mark to indicate that such persons are of the legal drinking age. It shall be unlawful for any person to possess or consume an alcoholic beverage in the designated area without wearing such wristband or identifying mark.

A City special event permit is not always required in city parks, which are controlled by the Manhattan Parks and Recreation Department (MPRD). Sec. 31-156(c) states that a City special event permit is not required in a city park unless the Director of Parks and Recreation requires it for safety reasons or due to the nature of the event. MPRD has a separate, departmental administrative permit process it follows when it does not think that a City special event permit is needed. The MPRD-approved special event can have alcohol, but only if the special event with alcohol is located in one of the City locations listed in Section 4-2 (inside certain MPRD facilities or within Sunset Zoo or Blue Earth Plaza).

MPRD has adopted policies, similar to other parks facilities, for the Blue Earth Plaza as it relates to the requirements for events that involve alcohol. MPRD does not require a City special event

permit for smaller, private gatherings at Blue Earth Plaza that involve alcohol and can be effectively managed with less extensive regulations. Events that involve alcohol, large crowds, and are open to the public, or are likely to attract minors, must obtain a City special event with alcohol permit. If this special event is fully contained within Blue Earth Plaza, then it could be approved by the City Clerk. However, if this special event with alcohol will include areas outside of Blue Earth Plaza (adjacent streets, roads, parking lots or sidewalks), then the City Commission must adopt an ordinance to permit alcohol at those locations.

City property is considered “unlicensed premises.” The State of Kansas Alcohol Beverage Control has rules in place for the sale or consumption of alcohol on unlicensed premises. A licensed caterer may sell alcohol by the individual drink on unlicensed premises, subject to the state’s “catered event” rules. The State also has four different “temporary event” permits. The State’s “street, road or sidewalk event permit” would apply to public property. This permit allows the qualified applicant to sell and serve liquor by the drink on unlicensed premises upon a closed city street, alley or sidewalk that has been approved by City ordinance or resolution. The event holder must submit a copy of the City’s ordinance with the State’s permit application. The applicant may only apply for up to four permits per calendar year, but the State can approve a duration up to 30 days. The State also allows the temporary special event applicant to determine whether to permit or prohibit customers from bringing their own alcoholic liquor to the event, subject to the State’s approval. Once a special event is approved, adjacent licensed premises can apply for a temporary extension of their premises into the special event area. For example, if Moro in Aggieville holds a State and City-approved special event, the bars that are located along Moro could apply to temporarily expand their premises onto Moro to allow the bar to sell alcohol that can be consumed within the special event area on Moro.

The State’s rules related to unlicensed premises are further complicated by the fact that the State has exemptions from temporary permits for (a) fundraising events of charitable or political organizations that provide complimentary alcohol and (b) non-licensed businesses serving free alcoholic liquor to the public during events sponsored by a non-profit supporting the arts if the event is approved by the local government. Again, this is not something that the City usually evaluates, because the event holder starts with the State and the State determines whether a permit or license is needed. However, if an exempt fundraising event is located upon City property that does not already permit alcohol, then the City would need to adopt an ordinance permitting alcohol at that location regardless of whether the State also required a temporary permit.

Greater Manhattan Community Foundation Young Trustees’ Requests Members of the Young Trustees have requested the City ease the boundary and access restrictions within the permitted area(s) alcohol may be served during special events at Blue Earth. They believe reduced restrictions to boundaries and access can increase attendance at such events, particularly families with children under the age of 21. Currently, parents or guardians (over 21) with children at these events must split up their family in order to access the area with alcoholic beverages, and cannot leave the designated area with the alcoholic beverage. It must be consumed within the permitted area. A single parent or guardian at the event would not be capable of accessing the area without leaving their child unattended. Recent permit holders believe these restrictions prevent members of the community from accessing the designated alcohol consumption areas, as well as inhibits their ability to fully experience the entire event. It may deter members of the public to attend the event all together.

The City currently permits alcohol within Blue Earth Plaza per Sec. 4-2 of the City Code, and if a City special event permit is not required by MPRD, then MPRD can set the parameters of the alcohol use. In other words, MPRD could administratively expand the boundaries where alcohol can be consumed and permit minors to enter that area. (This may, however, subject the MPRD to scrutiny or challenge if the rules are not applied equally).

However, if the event is a large public event, like the Chili Cook-off, then MPRD typically requires a City special event permit. Under that permit, alcohol must only be provided in a separate designated area that prohibits minors. The City can change its special event permit ordinance to permit minors within the designated area for alcohol, as this is a City ordinance requirement and not a state law requirement. However, that designated area must be demarcated in some way per State law. Regulations regarding how alcohol is served, limits to the amount of beverages that can be sold at one time, and requiring wristbands or other identifying marks be issued to indicate that such persons are of the legal drinking age could continue. Furthermore, regulations could be added to issue identifying markings to persons under the age of 21.

Members of the Young Trustees would also like to explore the possibility of allowing the consumption of alcohol/designated area of consumption to extend into the public sidewalks and streets, adjacent to Blue Earth Park, where the chili cooking and tasting occurs. This is currently permitted by State law, but State law dictates this process and the City can’t amend it by ordinance. (However, the City could amend Sec. 31-159(a)(8) to clarify that the special event with alcohol can be permitted beyond the park area). As discussed above, K.S.A. 41-719 requires the event holder to receive approval by City ordinance and to receive a State special event permit. The City requires the approval of a City special event permit. If approved, alcohol could be consumed in the closed City sidewalks and streets during the special event. Also, adjacent licensed premises could request approval to temporarily expand their premises into the street special event area.

Feasibility Considerations regarding the acceptable size and location of the designated alcohol consumption area should also be considered. In the past, most designated areas where alcohol has been permitted within Blue Earth Plaza have only utilized small portion of the grass area, with remaining areas designated for other event activities for all ages. As the size of the alcohol consumption area increases, it would limit existing green space for other park activities. If the City changed the ordinance to allow inviduals of all ages within the designated area of alcohol consumption, then the dimensions of area designated for alcohol consumption would likely need to become greater in size. This may require changes to other provisions of the City’s special event permit ordinance. Sec. 31-159(a) would need to be evaluated, as it requires that the special event meet certain safety and access requirements as well as not interfere with normal park operations. If the enclosed area is larger, it may be more difficult to satisfy these requirements.

Increasing the number of inviduals within the designated area of alcohol consumption at Blue Earth Plaza could require increased monitoring and supervision from the Riley County Police Department (RCPD), likely including an increase in the number of officers needed to patrol the area, depending on the type of event. It may also increase the number of volunteers needed by the permit holder to hold the event.

Lastly, it is of critical importance to note that the City must remain fair regarding the organizations that are allowed a special event permit with alcohol. The City must grant the special event with alcohol request, if the applicant can meet the requirements and regulations. That means the City may be in the position of approving events that are family-friendly and events that are not family- friendly. Family-friendly events may be much easier for RCPD to monitor underage drinking, while events held by campus organizations, fraternities or sororities, where attendees will consist of predominately students aged 18-24, will be much more difficult to monitor and distinguish between the ages of attendees. If the city changed its ordinance to allow inviduals of all ages within the designated area of alcohol consumption, the City could not allow a special event permit for a family-friendly event and deny another event that would be more difficult to enforce.

RCPD Director Brad Schoen has indicted he would be okay with supporting event patrons all ages within the designated area for the sale/consumption of alcohol if proper regulations are in place to help identify between the age groups.

Options for the Young Trustees The following avenues are available to meet the needs of the Young Trustees requests: 1. In order to meet the Young Trustee’s request to allow persons of all ages within the designated area of alcohol consumption, the City must amend Sec. 31-160(i) of the Code of Ordinances regarding the list of requirements pertaining to special events with alcohol. The amendment could, in general, permit persons of all ages within the area designated for the presence, service, or consumption of alcoholic beverages. Persons over the age of 21 could be issued a wristband or other identifying mark to indicate that such persons are of the legal drinking age. Persons under the age of 21could also be issued a different wristband or other identifying mark to indicate such persons are not of the legal drinking age.

a. The Young Trustees would need to approach the City Commission to explore this idea, and if a majority of the City Commission is open to the idea, the City Commission could direct City Administration to bring forth an amendment to the ordinance for their consideration that meets the needs of the Commission, Parks and Recreation Department, RCPD, and the public. 2. In order to meet the Young Trustee’s request to extend the designated area of alcohol consumption beyond the Blue Earth Park and into adjacent public sidewalks and streets, the City must amend Sec. 31-159(a)(8) to clarify that the special event with alcohol can be permitted beyond the park area. Currently, Sec. 31-159(a)(8) allows a special event to include alcohol if it is located in “the public park in the Downtown Entertainment District PUD.” In general, this location would need to be amended and written to reflect a specific boundary including the park, as well as the adjacent sidewalks and streets along South 3rd Street and Blue Earth Place where alcohol may be consumed. The event holder would also need to receive approval by City ordinance to receive a state special event permit so alcohol could be consumed in the closed areas of the City sidewalks and streets during the special event. The approval by City ordinance would need to occur each time an event hold wanted to hold such an event were consumption of alchol would occur on city sidewalks and streets. a. The Young Trustees would need to approach the City Commission to explore this idea, and if a majority of the City Commission is open to the idea, the City Commission could direct City Administration to bring forth an amendment to the ordinance for their consideration that meets the needs of the Commission, Parks and Recreation Department, RCPD, and the public. The Commission would also need to pass an ordinance to receive the state special event permit so alcohol could be consumed on City sidewalks and streets.

JW/KJJ 18008

Enclosures 1. Request letter from the Young Trustees 2. Exhibit A from the Young Trustees (outline of proposed boundaries in Blue Earth)

7 March 21, 2018

City Commission 1101 Poyntz Ave. Manhattan, KS 66502

RE: Special Event Permits with Alcohol in Blue Earth Plaza

The Young Trustees hosted their inaugural Chili Cook-Off on November 4th, 2017 at Blue Earth Plaza. The premise of this event is to allow competing teams to make a batch of chili that will be judged by a competition committee as well as tasted and voted on by the general public who purchase a ticket to the event. The winning teams are awarded prize money which is then donated to the local non-profit of their choice. All proceeds from ticket sales, concession sales and sponsorship funding is also donated to local non-profits either at the event, or via our Young Trustee granting program.

21 teams competed in our inaugural Chili Cook-Off. These teams, stationed along 3rd St., served chili to the 423 people who purchased tickets via our website at mhkchili.com. In total (including sponsorships, team entries, ticket sales, beer garden, etc.) our Young Trustee group donated $10,226 to local non- profits that day! We also deposited an additional $7,000 to our YT account which will be used to fund various Young Trustee initiatives including our Letter’s to Santa program. We are very excited about how the first year’s event unfolded and its significant potential.

In an effort to continue to improve the event the Young Trustees are requesting the City of Manhattan examine its Code of Ordinances as it relates to restrictions on special event permits with alcohol held in Blue Earth Plaza. This request is specifically targeted to allow alcohol to be consumed within a designated area shown on Exhibit “A”. At our event last year, beer sales were limited to a fenced off area in the southwest portion of the grass. This effectively isolated these participants from the rest of the group. We received strong feedback indicating the opportunity to consume a beer while tasting the chili along 3rd St. would enhance the event by being able to interact with the rest of the patrons. This flexibility would also allow parents with children to consume a beer at the event without being separated from their family, as minors aren’t allowed within the “beer garden” area.

Understanding the challenges the City of Manhattan may face by issuing a special event permit with alcohol, the Young Trustees would support the following restrictions regarding alcohol consumption at our event:

 Site specific issuance; this permit is only available and accessible to Blue Earth Plaza events  Beer/Wine only; this is a family friendly event and we have no desire to serve liquor  Time restrictions; alcohol may only be served between the hours of 11:00am and 10:00pm

The Young Trustees appreciate the support of the Manhattan City Commission and look forward to discussing this issue in further detail.

Greater Manhattan Community Foundation – Young Trustees

EXHIBIT "A"

March 21, 2018 1:750 0 0.005 0.01 0.02 mi

0 0.01 0.02 0.04 km

RL Basemap Aerial 16 Discussion Item Special Events with Alcohol City Commission Legislative Meeting September 18, 2018 Agenda

• Brief overview of state and local laws • Young Trustee’s request – Blue Earth Plaza • Options considered during June 19 Discussion Item • Concerns from Sept. 4 First Reading • Possible 1st Reading on Sept. 25th • New Issues and Concerns related to Aggieville/Downtown • Follow-up questions/discussion Article IV of Chapter 31 – Special Events with Alcohol

• Allows for special events upon City streets, sidewalks, parking lots, public plazas or other City property or facilities. • If event includes alcohol, it can only be held within Aggieville Business District, Downtown Business District (including the Manhattan Town Center Plaza), and the public park in the downtown entertainment district PUD. • Sale and consumption of alcohol must occur within a fenced in “beer garden” K.S.A. 41-719 – City streets, sidewalks and alleys

• Process to allow alcohol on city streets, sidewalks and alleys • Special Event Temporary Permit 1. Applicant prepares Special Event Temporary Permit for the KS Department of Revenue 2. Applicant applies for a special event w/ alcohol permit with the City of Manhattan (at least 45 days in advance of event) 3. Administrative review from Customer Service, Public Works, Riley County Police Department (RCPD), the City Clerk and City Manager's Office 4. If requirements are met, an event-specific ordinance is brought forth to the City Commission for approval 5. If ordinance is passed by the Commission, it is attached to the KDOR Temporary Permit application and must be sent to the State at least 14 days prior to the event for approval by the applicant.

*Such a process can occur today, however, the consumption of alcohol would only be able to occur within a fenced-off beer garden per the City's current ordinance relating to special events with alcohol. Young Trustee’s Request

• Approached the City of Manhattan in February 2018. • 21+ requirement makes it difficult for parents/family oriented events due to need to separate in order to access area. Fenced off “beer garden” does not allow attendees to walk around with beer and taste chili. • Request removing the fenced off beer garden requirement. June 19, 2018 CC Meeting – Discussion Item

• City Commission considered three options regarding special events with alcohol in Blue Earth Plaza, Aggieville, Downtown: • Option (1) maintain the current approach, which requires a smaller fenced “beer garden” that only 21+ can enter within the larger special event area • Option (2) maintain the requirement for a fenced “beer garden” as the only place where alcohol can be served/consumed within a special event area, but allow all ages inside the beer garden • Option (3) eliminate the beer garden requirement and allow alcohol to be consumed throughout the special event area and accessed by all ages. September 4, 2018 CC Meeting – 1st Reading

• City Commission concerns from 1st Reading and proposed changes: • Special Event Time Limit – Recommend to allow City Clerk (for events without alcohol) or the City Commission (when considering special events with alcohol) to allow a special event's hours to be extended to 2:00 a.m. subject to their approval. • Boundaries – Recommend allowing special events with alcohol on city property in the following locations: C-3 Aggieville Business District and C-4 Central Business District defined by Manhattan Zoning Regs (remains unchanged from current ordinance) and Blue Earth Plaza Park including the adjacent sidewalks, S. 3rd Street, Blue Earth Place, private drive owned by City south of FHDC, and the private lot south east of FHDC owned by the City

September 4, 2018 CC Meeting – 1st Reading

• City Commission concerns from 1st Reading and proposed changes: • Distinct containers for alcoholic beverages if multiple vendors/licensees exist: Recommend removing the following provision: “If more than one vendor or licensee is providing the sale or service of alcoholic beverages, each vendor or licensee must sell or serve their alcoholic beverages in distinct containers that identify the vendor or licensee.” • Due to the uniqueness of each special event, City Admin/RCPD will review the application and determine if distinct containers for each identified vendor/licensee should be required on a case-by-case basis, which will ultimately be reviewed by the Commission. The importance of distinguishing between vendors may vary, based upon the vendors within the event and those adjoining the event • The ordinance will still require the following: no glass containers, no pitchers, buckets or carafes, alcoholic beverages shall be served in containers that are distinctly different than those provided for non-alcoholic beverages Young Trustee’s Timeline

• Special Event w/ Alcohol Application due to the City from the Young Trustee’s by September 19th • Sept. 25th - 1st Reading to amend ordinance • Oct. 2nd - 2nd Reading amend ordinance • Oct. 2nd – 1st Reading to adopt Event-Specific ordinance to allow alcohol on public streets/sidewalks for Young Trustee’s event on Nov. 3 • Oct. 16th – 2nd Reading to adopt Event-Specific ordinance to allow alcohol on public streets/sidewalks for Young Trustee’s event on Nov. 3 • Oct. 19th – State Temporary Event Permit due to the State from Young Trustees Young Trustee’s Timeline

• If the City Commission is willing to meet the Young Trustee’s timeline and meet their request to allow the consumption of alcohol on public streets and sidewalks adjacent to Blue Earth Plaza, a First Reading to amend the ordinance must occur on the Sept. 25th Special Legislative Meeting • Due to the complexity in amending the ordinance to also allow such consumption of alcohol to occur in Aggieville and Downtown on public streets and sidewalks, and the quick turnaround/time constraint to have something prepared in such a short amount of time, City Administration will only be able to bring an amended ordinance that addresses Blue Earth Plaza. • City Administration/Legal would then have more time to address concerns related to Aggieville and Downtown, and would give us more time to get feedback from those districts and RCPD.

• City Administration is looking for feedback on whether or not the Commission wishes to pursue an 1st reading Amendment at the Sept. 25, that only addresses Blue Earth Plaza. New Issues Involving Adjacent Businesses Extending Premises into the Special Event Area • Under State Law and current framework of our Special Events with Alcohol Ordinance, drinking establishments who wish to extend their premises must submit an application to ABC at least 10 days before event, but do not have to notify special event permit holder, and the City does not have authority over a drinking establishments ABC license. • This means that neither the special event permit applicant, nor City Administration, may know the location or number of establishments that plan to extend their premises into the special event, until 10 days before event, which could lead to inadequate planning and impact the special event security plan. New Issues Involving Adjacent Businesses Extending Premises into the Special Event Area • Furthermore, • Under the current framework of our ordinance, special event regulations relating to crowd control, wristbands, service of alcohol, etc., that apply to and are required of the special event permit holder do not apply within any adjacent business wishing to extend their premises, because neither the premises owner nor the premises is part of the special event permit that that would be approved by the City Commission. • State law also holds both the special event permit holder and the adjacent drinking establishment "jointly liable" for any alcohol violations that occur within the special event area. This means the special event permit holder could be held liable for certain alcohol-related violations that are committed by the adjacent establishment over which it has no control.

• Because of these complexities, City Administration is looking for feedback on how they would like to proceed – two options are presented in the following slides Option 1 (based off current framework in Ordinance) – No regulation of adjacent drinking establishments

• Hypothetical Example Scenario for Option 1: • Special Event Permit Applicant proposes the following boundary in red for their special event with alcohol. It goes before the commission and the special event is approved by ordinance. • Drinking Establishments (DE) 1, 2, 3, and 4 choose to apply to the ABC at least 10 days before the event to extend their premises and are approved by the ABC. The DE’s do not need to notify the special event applicant. The applicant and DE’s 1, 2, 3, and 4 become jointly liable for any violations related to consumption of alcohol. • Any special event requirements (wristbands, types of containers, etc.) that are not followed by the DE cannot be enforced, because they are not in the special event boundary. Option 2 (similar to Wichita)– Require a special event applicant to notify adjacent businesses at least six weeks prior to the event; list any drinking establishment on application to the City wishing to extend premises; drinking establishments that extend their premises become within the special event boundary and are subject to special event rules • Hypothetical Example Scenario for Option 2 • Special Event Permit Applicant seeking to hold special event notifies all Drinking Establishments (1, 2, 3, 4 and 5) adjacent to the proposed boundary they are pursuing at least 6 weeks before the proposed date of the event. • DE’s 1, 2, 3 and 4 let the applicant know they will pursue extending their premises through the ABC application and the Applicant lists the DE’s on their application to the City. • It goes before the commission and the special event is approved by ordinance, which would reflect a boundary that includes public and private property in red (reformulating this part of the ordinance to allow such a boundary to be created would take time and not be ready by the Sept. 25 First Reading). The applicant and DE’s 1, 2, 3, and 4 become jointly liable for any violations related to consumption of alcohol. • During the special event, all special event requirements related to service of alcohol (wristbands, containers, etc.) would apply on the streets and sidewalks, as well as in the DEs that have extended their premise and were on the original application. Other considerations

• Other considerations that have been brought up by Commissioners and City Administration would like feedback:

• Clean Up Deposit: There is currently no clean up deposit, and clean is required of the applicant. Removal of beer garden and contained area where alcohol is consumed could change the impact of the event. The applicant is currently in charge of clean up. If the clean up on public streets and sidewalks meets the satisfaction of the City, the deposit is returned.

• Alcoholic Beverages: currently, the ordinance allows the consumption of any type of alcohol beverage (beer, wine, mixed drinks). Feedback/Questions?