By Anne Thom

Brian Hachey, manager of Stacy Wine and Spirits, has been working to bring down costs in the liquor operations as well as to increase sales. Hachey had been proposing to change dram shop insurance carriers from the current League of Minnesota Cities policy to coverage with a company called Accordia.

On June 27, Tony Baldwin, agent with Accordia described how he had gotten involved in dram shop coverage through the Minnesota Municipal Beverage Association (MMBA).

Baldwin said he had been meeting with MMBA president Paul Kaspszak over the organizations members concerns over the price of dram shop liability coverage. Forming a group meant that MMBA members would be able to achieve competitive rates during future negotiations. The net savings would be close to 50 percent.

Councilmember John Daher was concerned about the difference in rates. ìThat concerns me for the one simple reason I have learned in my lifetime you donít get anything for free.î

Baldwin said average savings is 25-35 percent. Daher said he has reservations because it is such a significant difference. Founders Insurance agreed to underwrite and 41 MMBA municipalities form the group. The company has an A- rating. Baldwin cited Hinckley, Rogers, Hackensack and Kenyon as cities that were perhaps comparable in their liquor operations and need for coverage. Rates are lower because these municipalities offer fewer entertainment events, ownership is stable, and cities tend to hire good managers and are careful about liability controls.

Daher said that the Stacy Bar would be offering live music and asked what constitutes occasional. Mayor Michael Carlson added that the city would be adding to its offerings of live entertainment. Carlson told Baldwin that the new Stacy Bar had been built with a music room and the city was looking to offer more entertainment in that location. Baldwin said that, depending on the specifics of the account, or how circumstances change, rates can be raised or lowered as with any typical homeowners or auto insurance policy.

Daher asked about when Founders might cancel a policy. Baldwin said they would not cancel, but simply chose not to renew when the current coverage is about to expire. The Stacy insurance policy through the League of Minnesota Cities is now up for renewal.

City Attorney Peter Grundhoefer was absent from the meeting. He had asked numerous questions at the previous council meeting and felt that it was safer to stick with the League insurance.

Grundhoefer had made a comparison of policies between the two meetings. Daher said, ìIím sure I heard Peter reviewed the policy and they were similar in comparisonî with the current League coverage.

Hachey said, ìHe (Grundhoefer) was bringing up the worst case scenario which is his job, and Iím trying to sell liquor.î The council briefly considered the motion and this time passed it. Dram Shop coverage will be provided through Founders Insurance, agent Tony Baldwin, saving Stacy approximately $29,000.

In other news:

Representatives from the Sunrise Mobile Home Park were on hand to discuss strategy as the new lift station serving the west side of town is constructed. There were concerns about how emergency vehicles would get through to the far side of the park.

There will be posted ìno parkingî areas that the sheriffís deputy will patrol for violators. The construction area will be entirely fenced in and the deputy will patrol to ensure the security of the construction site and equipment. Estimated time to complete the Sunrise Mobile Home Park Lift Station Project is 30-60 days.