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Council passed a resolution that keeps the insurance requirement at $2 million, instead of the $5 million recommended by the province.
Published May 02, 2023 • Last updated 13 minutes ago • 3 minute read
Summer patios have become popular in downtown Sault Ste. Marie. and it’s up to the city to licence them. jpg, SH
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Owners of outdoor patios wanting to serve some cool bevies during the hot days of summer will now need to apply to the city for its liquor licence permit.
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Changes to provincial legislation now put the city in charge to delegate authority to approve alcohol served on temporary patios.
But city council is somewhat split on whether it should require patio operators to carry the existing $2 million insurance requirement, or increase the requirement to $5 million as recommended by the province.
After some debate Monday, council passed a resolution that keeps the insurance requirement at $2 million – at least for now — but asked staff to review a tiered approach that would see larger patios with higher liquor sales require the $5 million insurance.
Councillors against maintaining the $2 million insurance requirement – which was set during the COVID-19 pandemic to give operators a bit of a break – were Ward 1’s Sonny Spina, Ward 2’s Luke Dufour and Ward 5’s Corey Gardi.
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Spina told city council that his research indicates the insurance premium costs are based on alcohol sales, not on the $5 million insurance requirement.
“This is an industry standard, used across the province,” Spina said.
But Mayor Matthew Shoemaker said he believes the existing $2 million insurance requirement is enough and he didn’t want to put the insurance requirement out of reach for smaller patio operators and newcomers who may want to start a business.
He noted that there hasn’t been any claims filed in connection with the existing policy.
“I believe the policy is working as it is and we should keep it that way or at least until we need to revisit it to $5 million,” he told city council.
Ward 1 Coun. Sandra Hollingsworth and Ward 4 Coun. Marchy Bruni agreed and moved that the policy be amended back to the $2 million insurance requirement.
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“I really want to support the small businesses and I support the decision to set (the insurance) to $2 million so we can move forward and we can look at a tiered process later,” she said.
Gardi countered that while he appreciated the lower rate was implemented during the pandemic in order to help during various provincially mandated closures, he’s supportive of the $5 million insurance rate to serve as protection for the community, and follow the provincial-wide policy.
Ward 2 Coun. Luke Dufour said he preferred staff investigate implementing a tiered approach, based on the size of the patio.
With patios set to open May 15, and the next city council meeting not scheduled until May 29, city planning director Peter Tonazzo noted that patio operators are watching for tonight’s decision and applications need to be approved.
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The report to council states that where city property is involved, a licence to occupy city property is completed and language within the licence sees the applicant fully indemnify and hold the city harmless with its insurance policy.
A second process occurs where a private temporary patio is established. In that case, “because of the recent change and responsibility created, there are currently no municipal requirements for private patios with respect to liability/insurance,” the report reads. “as such, a waiver was developed and sets out insurance required.”
The city’s legal department pushed for the $5 million insurance because “the additional responsibility on the city as the approval body adds emphasis on a higher insurance amount to best protect the city.”
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Spina argued “industry standards are there for a reason. They exist because they see these things happening. It puts everyone on the same playing field and it is important to listen and follow these standards.”
Shoemaker said each business has its own insurance company requirements and some of those companies may insist on the $5 million coverage.
“For us, the $2 million is a baseline only and it helps those smaller businesses,” he said.
City staff is expected to have a further report at its next meeting on a possible tiered insurance approach that could be implemented in the future.
Councillors Lisa Vezeau Allen and Stephan Kinach were absent from the meeting.
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