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2018-04-03 Council Work Session PacketCITY OF MENDOTA HEIGHTS CITY COUNCIL WORK SESSION AGENDA April 3, 2018 5:30 pm Mendota Heights City Hall 1. Open Session--Call to Order 2. Follow-up on Flavored Tobacco Discussion 3. Fund Balance Policy Update 4. Discussion of marketing City-owned parcels 5. Adjourn To: Mayor and City Council From: Mark McNeill, City Administrator Subject: Flavored Tobacco Discussion Date: April 3, 2018 COMMENT: The 5:30 PM workshop on April 3rd will begin with a follow-up of the March 20th meeting of the City Council on possible limitations on the sale of flavored tobacco. Elyse Less and Melissa Mady of the MN Tobacco Free Alliance will be in attendance to answer questions. Assuming changes are to be made to the ordinance, we will discuss next steps. That would include a meeting with tobacco vendors, and then notification requirements needed before this topic would be considered at a regular City Council meeting. Mark McNeill City Administrator page 2 Flavored tobacco information for Mendota Heights Tobacco products covered under a proposed flavored tobacco sales restriction: • The ordinance would restrict the sale of flavored tobacco in the form of cigars, cigarillos, chew/snuff and e-cigarettes as part of the licensing regulations. Menthol, wintergreen and mint flavors would be exempt. E-Cigarettes Are Tobacco Products. • E-cigarettes are considered tobacco products under federal i and state law.ii • E-cigarettes, also called vape pens, e-hookahs, and hookah pens are battery-operated devices that contain a mixture of liquid nicotine and other chemicals. The device heats the mixture, called e-juice, producing a nicotine emission that is inhaled.iii • E-liquids commonly contain nicotine.iv Furthermore, the chemicals used to flavor e-liquids are not proven safe for inhalation, and some are known to cause serious and irreversible lung damage, or cancer.v,vi • Studies have shown that e-cigarettes labeled as not containing nicotine actually contained nicotine.vii • E-cigarettes are not proven to be better for quitting smoking than existing treatments, and the Food and Drug Administration (FDA) has not approved them as quitting aids. The FDA has, however, approved a variety of other products as cessation aids (e.g. medications and counseling).viii Flavored tobacco products are a leading health concern. • Tobacco use is the leading cause of death and disease in the United States. Flavored tobacco products are no safer than unflavored tobacco products. • Research shows that youth believe flavored tobacco products are less dangerous and less addictive than non- flavored tobacco.ix However, they are just as dangerous as cigarettes with the same health risks of cancer, heart disease and chronic obstructive pulmonary disease.x • Almost all flavored tobacco products contain nicotine. • Flavored tobacco products are readily accessible to young people at gas stations and convenience stores. Nicotine is Harmful to Young People. • Nicotine is addictive - no amount of nicotine is safe for youth.xi • Nicotine interferes with brain maturation and can have a long-term effect on cognitive development and mental health.xii • Even brief or intermittent nicotine exposure during adolescence can cause lasting damage.xiii • The addictive properties of nicotine can lead adolescents to heavier daily tobacco use and a more difficult time quitting later in life.xiv Flavored tobacco products are popular with young people and are easy for them to get according to the recent Minnesota Youth Tobacco Survey.xv • In Minnesota, youth tobacco use has increased for the first time in 17 years as a result of e-cigarette and cigar use. Youth e-cigarette use is at the highest point ever recorded. • More than one in four Minnesota high school students use tobacco products. Most of these tobacco products, including e-cigarettes and cigars, come in a variety of flavors. • One in five Minnesota high school students used an e-cigarette (commonly known as “vaping”) in the past 30 days, nearly a 50 percent increase from 2014. • More than 10 percent of Minnesota high school students used cigars or cigarillos in the past 30 days, nearly a 30 percent increase from 2014. • More than 32 percent of underage Minnesota high school students who use e-cigarettes got or bought their e- cigarettes from retail outlets. page 3 i Family Smoking Prevention and Tobacco Control Act §101(a),Pub. L. No. 111-31, 123 Stat. 1783 (2009) (codified at 21 U.S.C. §321(rr)(1)) . ii Minn. Stat. §144.414, subds 2,3, and 5. iii Foulds J, Veldheer S, Berg A. Electronic cigarettes (e-cigs): views of aficionados and clinical/public health perspectives. Int J Clin Pract. 2011;65:1037–1042. iv https://www.vapertrain.com/page/hdics v American Lung Association. (n.d.). E-cigarettes and lung health. http://www.lung.org/stop-smoking/smoking-facts/e-cigarettes-and-lung-health.html vi Centers for Disease Control and Prevention. (n.d.). Electronic cigarettes. https://www.cdc.gov/tobacco/basic_information/e-cigarettes/index.htm vii Trehy, M.L., Ye. W., Hadwiger, M.E. (2011). Analysis of electronic cigarette cartridges, refill solutions, and smoke for nicotine and nicotine related impurities. Journal of Liquid Chromatography & Related Technologies, 34(14), 1442-1448. viii U.S. Preventive Services Task Force. Final Recommendation Statement - Tobacco Smoking Cessation in Adults, including Pregnant Women: Behavioral and Pharmacotherapy Interventions. https://www.uspreventiveservicestaskforce.org/Page/Document/RecommendationStatementFinal/tobacco-use-in-adults-and- pregnant-women-counseling-and-interventions1 ix Choi K, Fabian L, Mottey N, Corbett A, Forster J. Young adults’ favorable perceptions of snus, dissolvable tobacco products, and electronic cigarettes: findings from a focus group study. Am J Public Health.2012;102:2088–2093. x Campaign for Tobacco Free Kids. Not Your Grandfather’s Cigar. A New Generation of Cheap & Sweet Cigars Threatens a New Generation of Kids. 2013. http://www.tobaccofreekids.org/what_we_do/industry_watch/cigar_report xiU.S. Department of Health and Human Services. The Health Consequences of Smoking: 50 Years of Progress. A Report of the Surgeon General. U.S. Department of Health and Human Services, Centers for Disease Control and Prevention, National Center for Chronic Disease Prevention and Health Promotion, Office on Smoking and Health. 2014. xii U.S. Department of Health and Human Services. The Health Consequences of Smoking: 50 Years of Progress. A Report of the Surgeon General. U.S. Department of Health and Human Services, Centers for Disease Control and Prevention, National Center for Chronic Disease Prevention and Health Promotion, Office on Smoking and Health. 2014. xiii Goriounova, N., Mansvelder, H. Nicotine exposure during adolescence alters the rules for prefrontal cortical synaptic plasticity during adulthood. Frontiers in synaptic neuroscience. 2012. xiv Nelson, D. et al. Long-term trends in adolescent and young adult smoking the United States: metapatterns and implications. Am J Public Health. 2008. xv 2017 Minnesota Youth Tobacco Survey • www.health.mn.gov/tobacco page 4 Chapter 2 TOBACCO SALES 3-2-1: PURPOSE: 3-2-2: DEFINITIONS AND INTERPRETATION: 3-2-3: LICENSE: 3-2-4: LICENSE FEE: 3-2-5: GROUNDS FOR DENIAL OF LICENSE: 3-2-6: PROHIBITED SALES; ILLEGAL ACTS:[PN1] 3-2-7: SELF-SERVICE SALES: 3-2-8: RESPONSIBILITY FOR EMPLOYEES: 3-2-9: COMPLIANCE CHECKS AND INSPECTIONS: 3-2-10: CIVIL ENFORCEMENT: 3-2-11: NOTICE OF VIOLATION: 3-2-12: PENALTIES: 3-2-13: HEARINGS AND APPEALS: 3-2-14: SEVERABILITY: 3-2-15: EFFECTIVE DATE:[PN2] 3-2-1: PURPOSE: Because the city recognizes that many persons under the age of eighteen (18) years purchase or otherwise obtain, possess and use tobacco, tobacco products, tobacco related devices, electronic delivery devices, and nicotine or lobelia delivery devices, and such sales, possession and use are violations of both state and federal laws; because[ELL3] marketing and public health research and tobacco industry documents reveal that tobacco companies have used fruit, candy, and alcohol flavors as a way to target youth and young adults and that the presence of flavors in tobacco products can make it more difficult for youth, young adult, and adult tobacco users to quit; andand because studies, which the city hereby accepts and adopts, have shown that most smokers begin smoking before they have reached the age of eighteen (18) years and that those persons who reach the age of eighteen (18) years without having started smoking are significantly less likely to begin smoking; and because smoking has been shown to be the cause of several severe health problems which subsequently place a financial burden on all levels of government; this chapter shall be intended to regulate the sale, possession and use of tobacco, tobacco products, tobacco related devices, electronic delivery devices, and nicotine or lobelia delivery devices for the purpose of enforcing and furthering existing laws, to protect minors against the serious effects associated with the illegal use of tobacco, tobacco products, tobacco related devices, electronic delivery devices, and nicotine or lobelia delivery devices, and to further the official public policy of the state in regard to preventing young people from starting to smoke use tobacco products as stated in Minnesota statutes section 144.391, public policy. (Ord. 458, 12-3-2013) 3-2-2: DEFINITIONS AND INTERPRETATION: page 5 Except as may otherwise be provided or clearly implied by context, all terms shall be given their commonly accepted definitions. The singular shall include the plural and the plural shall include the singular; the masculine shall include the feminine and vice versa; the term "shall" means mandatory and the term "may" means permissive. The following terms shall have the definitions given to them: CIGAR:[PN4] Any roll of tobacco that is wrapped in tobacco leaf or in any other substance containing tobacco, with or without a tip or mouthpiece, which is not a cigarette as defined in Minn. Stat. § 297F.01, subd. 3, as may be amended from time to time. COMPLIANCE CHECKS: The system the city uses to investigate and ensure that those authorized to sell tobacco, tobacco products, tobacco related devices, and nicotine or lobelia delivery devicestobacco, tobacco products, tobacco related devices, electronic delivery devices, and nicotine or lobelia delivery devices are following and complying with the requirements of this chapter. Compliance checks shall involve the use of minors as authorized by this chapter. Compliance checks shall also mean the use of minors who attempt to purchase tobacco, tobacco products, tobacco related devices, or nicotine or lobelia delivery devices for educational, research and training purposes as authorized by state and federal laws. Compliance checks may also be conducted by other units of government for the purpose of enforcing appropriate federal, state or local laws and regulations relating to tobacco, tobacco products, tobacco related devices, and nicotine or lobelia delivery devicestobacco, tobacco products, tobacco related devices, electronic delivery devices, and nicotine or lobelia delivery devices. ELECTRONIC DELIVERY DEVICES: Any product containing or delivering nicotine, lobelia, or any other substance intended for human consumption through the inhalation of aerosol or vapor from the product. Electronic delivery device includes, but is not limited to, devices manufactured, marketed, or sold as e-cigarettes, e-cigars, e-pipes, vape pens, mods, tank systems, or under any other product name or descriptor. Electronic delivery device includes any component part of a product, whether or not marketed or sold separately. Electronic delivery device does not include any product that has been approved or certified by the United States Food and Drug Administration for sale as a tobacco-cessation product, as a tobacco-dependence product, or for other medical purposes, and is marketed and sold for such an approved purpose.[PN5] FLAVORED PRODUCT: Any tobacco, tobacco product, tobacco related device, electronic delivery device, and nicotine or lobelia delivery device that contains a taste or smell, other than the taste or smell of tobacco, menthol, mint, or wintergreen that is distinguishable by an ordinary consumer either prior to or during the consumption of the product, including, but not limited to, any taste or smell relating to chocolate, cocoa, vanilla, honey, fruit, or any candy, dessert, alcoholic beverage, herb, or spice. A public statement or claim, whether express or implied, made or disseminated by the manufacturer of a tobacco, tobacco product, tobacco related device, electronic delivery device, and nicotine or lobelia delivery device licensed product, or by any person authorized or permitted by the manufacturer to make or disseminate public statements concerning such products, that a product has or produces a taste or smell other than page 6 tobacco, menthol, mint, or wintergreen, will constitute presumptive evidence that the product is a flavored product. INDIVIDUALLY PACKAGED: The practice of selling any tobacco or tobacco product wrapped individually for sale. Individually wrapped tobacco and tobacco products shall include, but not be limited to, single cigarette packs, single bags or cans of loose tobacco in any form, and single cans or other packaging of snuff or chewing tobacco. Cartons or other packaging containing more than a single pack or other container as described in this definition shall not be considered "individually packaged". INDOOR AREA: All space between a floor and a ceiling that is bounded by walls, doorways, or windows, whether open or closed, covering more than fifty percent (50%) of the combined surface area of the vertical planes constituting the perimeter of the area. A wall includes any retractable divider, garage door, or other physical barrier, whether temporary or permanent. LOOSIES: The common term used to refer to a single or individually packaged cigarette or any other tobacco product that has been removed from its packaging and sold individually. The term "loosies" does not include individual cigars with a retail price, before any sales taxes, of more than two dollars ($2.00) per cigar. MINOR: Any person who has not yet reached the age of eighteen (18) years. MOVABLE PLACE OF BUSINESS: Any form of business operated out of a truck, van, automobile, or other type of vehicle or transportable shelter and not a fixed address storefront or other permanent type of structure authorized for sales transactions. NICOTINE OR LOBELIA DELIVERY DEVICES: Any product containing or delivering nicotine or lobelia intended for human consumption, or any part of such a product, that is not tobacco as defined in this section, not including any product that has been approved or otherwise certified for legal sale by the United States food and drug administration for tobacco use cessation, harm reduction, or for other medical purposes, and is being marketed and sold solely for that approved purpose. RETAIL ESTABLISHMENT: Any place of business where tobacco, tobacco products, tobacco related devices, electronic delivery device, or nicotine or lobelia delivery devices are available for sale to the general public. The phrase shall include, but not be limited to, grocery stores, convenience stores, restaurants, and drugstores. SALE: [PN6]Any transfer of goods for money, trade, barter or other consideration. SELF-SERVICE MERCHANDISING: Open displays of tobacco, tobacco products, tobacco related devices, or nicotine or lobelia delivery devices in any manner where any person shall have access to the tobacco, tobacco products, tobacco related devices, or nicotine or lobelia delivery devices, without the assistance or intervention of the licensee or the licensee's employee. Such assistance or intervention shall involve the actual physical exchange of the tobacco, tobacco product, tobacco related device, electronic page 7 delivery device, or nicotine or lobelia delivery devices between the customer and the licensee or employee. Self-service sales are interpreted as being any sale where there is not an actual physical exchange of the product between the clerk and the customer. "Self-service merchandising" shall not include vending machines. SMOKING:[PN7] Inhaling, exhaling, burning, or carrying any lighted or heated cigar, cigarette, or pipe, or any other lighted or heated product, whether natural or synthetic, containing, made, or derived from nicotine, tobacco, marijuana, or other plant, that is intended for inhalation. Smoking also includes carrying or using an activated electronic delivery device.Inhaling or exhaling smoke from any lighted or heated cigar, cigarette, pipe, or any other lighted or heated tobacco or plant product. Smoking also includes carrying a lighted or heated cigar, cigarette, pipe, or any other lighted or heated tobacco or plant product intended for inhalation. TOBACCO OR TOBACCO PRODUCTS: Tobacco and tobacco products includes cigarettes and any product containing, made, or derived from tobacco that is intended for human consumption, whether chewed, smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, or any component, part, or accessory of a tobacco product; cigars; pipe tobacco; snuff, fine cut or other chewing tobacco; cheroots; stogies; perique; granulated, plug cut, crimp cut, ready rubbed, and other smoking tobacco; snuff flour; cavendish; shorts; plug and twist tobaccos; dipping tobaccos; refuse scraps, clippings, cuttings, and sweepings of tobacco, and other kinds or forms of tobacco. Tobacco excludes any tobacco product that has been approved by the United States food and drug administration for sale as a tobacco cessation product, as a tobacco dependence product, or for other medical purposes, and is being marketed and sold solely for such an approved purpose. TOBACCO RELATED DEVICES: Include aAny tobacco product as well as a pipe, rolling papers, or other device intentionally designed or intended to be used in a manner which enables the chewing, sniffing, or smoking of tobacco or tobacco products. Tobacco related devices also includes components of tobacco-related devices which may be marketed or sold separately. VENDING MACHINE: Any mechanical, electric or electronic, or other type of self- service device which, upon the insertion of money, tokens or other form of payment, dispenses the tobacco, tobacco product or tobacco related devices and includes vending machines equipped with manual, electric or electronic locking devices. (Ord. 458, 12-3-2013) 3-2-3: LICENSE: A. License Required: No person shall sell or offer to sell any tobacco, tobacco products or tobacco related device, electronic delivery device, or nicotine or lobelia delivery device without first having obtained a license to do so from the city clerk or other page 8 such city office which the city council may from time to time designate to carry out the duties of the city clerk set forth in this chapter. B. Application: An application for a license to sell tobacco, tobacco products, tobacco related devices, electronic delivery device, or nicotine or lobelia delivery devices shall be made on a form provided by the city. The application shall contain the full name of the applicant, the applicant's residential and business addresses and telephone numbers, the name of the business for which the license is sought, and any additional information the city deems necessary. Upon receipt of a completed application, the city clerk shall forward the application to the city council for action at its next regularly scheduled city council meeting. If the city clerk shall determine that an application is incomplete, he or she shall return the application to the applicant with notice of the information necessary to make the application complete. C. Action: The city council may either approve or deny the license, or it may delay action for a reasonable period of time as necessary to complete any investigation of the application or the applicant it deems necessary. If the city council approves the license, the city clerk shall issue the license to the applicant. If the city council denies the license, notice of the denial shall be given to the applicant along with notice of the applicant's right to appeal the city council's decision. D. Term: All licenses issued under this section shall expire on December 31 of the year of issuance. E. Revocation Or Suspension: Any license issued under this section may be revoked or suspended as provided in this chapter. F. Transfers: All licenses issued under this section shall be valid only on the premises for which the license was issued and only for the person to whom the license was issued. No transfer of any license to another location or person shall be valid without the prior approval of the city council. page 9 G. Movable Place Of Business: No license shall be issued to a movable place of business. Only fixed location businesses shall be eligible to be licensed under this section. H. Display: All licenses shall be posted and displayed in plain view of the general public on the licensed property. I. Renewals: The renewal of a license issued under this section shall be handled in the same manner as the original application. The request for a renewal shall be made at least thirty (30) days but no more than sixty (60) days before the expiration of the current license. J. Issuance As Privilege And Not A Right: The issuance of a license under this section shall be considered a privilege and not an absolute right of the applicant and shall not entitle the holder to an automatic renewal of the license. K. Smoking Not Permitted: Smoking shall not be permitted and no person shall smoke within the indoor area of any establishment with a retail tobacco license. Smoking for the purposes of sampling tobacco, tobacco products, tobacco related devices, and nicotine or lobelia delivery devicestobacco, tobacco products, tobacco related devices, electronic delivery devices, and nicotine or lobelia delivery devices is prohibited. L. E-Cigarettes: Smoking of e-cigarettes, or electronic delivery devices as defined herein, is prohibited in any area that Minnesota state statute restricts the smoking of tobacco products with the exception of businesses licensed to sell on-sale liquor. (Ord. 458, 12-3-2013) 3-2-4: LICENSE FEE: No license shall be issued under this chapter until the appropriate license fee is paid in full. The license fee will not be prorated for any applicants. The fee for a license under this chapter shall be set in accordance with a fee schedule adopted by the city council. (Ord. 458, 12-3-2013) 3-2-5: GROUNDS FOR DENIAL OF LICENSE: page 10 The following shall be grounds for denying the issuance or renewal of a license under this chapter. The following list is not exhaustive or exclusive: A. The applicant is under the age of eighteen (18) years. B. The applicant has been convicted within the past five (5) years of any violation of a federal, state, or local law, ordinance provision, or other regulation relating to tobacco, tobacco products, tobacco related devices, electronic delivery devices, or nicotine or lobelia delivery devices. C. The applicant or license holder has had a license to sell tobacco, tobacco products or tobacco related devices, electronic delivery devices, or nicotine or lobelia delivery devices revoked within the preceding twelve (12) months of the date of application or is subject to penalties under section 3-2-12 of this chapter. D. The applicant or license holder fails to provide any of the information required on the application or provides false or misleading information. E. The applicant or license holder is prohibited by federal, state or other local law, ordinance or regulation from holding such a license. F. The applicant or license holder has outstanding fines, penalties, or property taxes owed to the city. (Ord. 458, 12-3-2013) 3-2-6: PROHIBITED SALES; ILLEGAL ACTS: A. Sales Prohibited: 1. It shall be a violation of this chapter for any person to sell, offer for sale, give away, furnish or otherwise deliver tobacco, tobacco products, tobacco related devices, electronic delivery devices, or nicotine or lobelia delivery devices: a. To any person under the age of eighteen (18) years. page 11 b. By means of any type of vending machine. c. By means of self-service merchandising whereby the customer does not need to make a verbal or written request to an employee of the licensed premises in order to receive the tobacco, tobacco product, tobacco related device, electronic delivery device, or nicotine or lobelia delivery device and whereby there is not a physical exchange of the tobacco, tobacco product, tobacco related device, or nicotine or lobelia delivery device between the licensee or the licensee's employee, and the customer. All tobacco, tobacco products, tobacco related devices, and nicotine or lobelia delivery devicestobacco, tobacco products, tobacco related devices, electronic delivery devices, and nicotine or lobelia delivery devices shall be stored behind the counter. d. By means of "loosies" as defined in section 3-2-2 of this chapter. e. Containing opium, morphine, jimsonweed, belladonna, strychnos, cocaine, marijuana, or other deleterious, hallucinogenic, toxic or controlled substances except nicotine and other substances found naturally in tobacco or added as part of an otherwise lawful manufacturing process. f. By any other means, to any other person, in any other manner or form prohibited by federal, state or other local law, ordinance provision or other regulation. B. Flavored products: No person shall sell or offer for sale any flavored product in any retail establishment[ELL8] as defined in section 3-2-2 of this chapter.. This prohibition does not apply to retail establishments that: 1. Prohibit persons under 21 from entering at all times; and 2. Derive at least 90 percent of their revenues from the sale of tobacco, tobacco product, tobacco related device, electronic delivery device, or nicotine or lobelia delivery device. Any retail establishment that sells flavored products must provide upon request financial records that document annual sales.[ELL9] BC. Illegal Acts: Unless otherwise provided, the following acts shall be violations of this chapter: 1. Sales: For any person to sell or otherwise provide any tobacco, tobacco product, tobacco related device, electronic delivery device, or nicotine or lobelia delivery device to a minor. 2. Possession: For any minor to have in his or her possession any tobacco, tobacco product, tobacco related device, or nicotine or lobelia delivery device. This subsection shall not apply to minors lawfully involved in a compliance check. page 12 3. Use: For any minor to smoke, chew, sniff or otherwise use any tobacco, tobacco product, tobacco related device, or nicotine or lobelia delivery device. 4. Procurement: For any minor to purchase or attempt to purchase or otherwise obtain any tobacco, tobacco product, tobacco related device, or nicotine or lobelia delivery device, and it shall be a violation of this chapter for any person to purchase or otherwise obtain such items on behalf of a minor. It shall further be a violation for any person to coerce or attempt to coerce a minor to illegally purchase or otherwise obtain or use any tobacco, tobacco product, tobacco related device, electronic delivery device, or nicotine or lobelia delivery device. This subsection shall not apply to minors lawfully involved in compliance checks. 5. False Identification: For any minor to attempt to disguise his or her true age by the use of a false form of identification, whether the identification is that of another person or one on which the age of the person has been modified or tampered with, to represent an age older than the actual age of the person. 6. Smoking: Notwithstanding any exceptions for tobacco products shops as set forth in the Minnesota clean Clean indoor Indoor air Air actAct, no licensee shall directly or indirectly permit smoking in the licensed premises. All licensees under this chapter shall be responsible for the actions of their employees and patrons in regard to any smoking in the licensed premises. (Ord. 458, 12-3-2013) 3-2-7: SELF-SERVICE SALES: It shall be unlawful for a licensee under this chapter to allow the sale of tobacco, tobacco products, tobacco related devices, electronic delivery devices, or nicotine or lobelia delivery devices by any means whereby the customer may have access to such items without having to request the item from the licensee or the licensee's employee and whereby there is not a physical exchange of the tobacco, tobacco product, tobacco related device, electronic delivery devices, or nicotine or lobelia delivery device between the licensee or his or her clerk and the customer. All tobacco, tobacco products, tobacco related devices, and nicotine or lobelia delivery devicestobacco, tobacco products, tobacco related devices, electronic delivery devices, and nicotine or lobelia delivery devices shall either be stored behind a counter or other area not freely accessible to customers or in a case or other storage unit not left open and accessible to the general public. New retailers selling tobacco, tobacco products, tobacco related devices, electronic delivery devices, and nicotine or lobelia delivery devices tobacco commencing business after the effective date hereof shall comply with this section immediately. (Ord. 458, 12-3-2013) 3-2-8: RESPONSIBILITY FOR EMPLOYEES: All licensees under this chapter shall be responsible for the actions of their employees in regard to the sale of tobacco, tobacco products, tobacco related devices, electronic delivery devices, or nicotine or lobelia delivery devices on the licensed premises and the page 13 sale of such an item by an employee shall be considered a sale by the license holder. (Ord. 458, 12-3-2013) 3-2-9: COMPLIANCE CHECKS AND INSPECTIONS: All licensed premises shall be open to inspection by city officials during regular business hours. From time to time, but at least once per year, a Mendota Heights police officer or other city employee as designated by the city council shall conduct compliance checks to ensure compliance with the provisions of this chapter. Such compliance checks shall utilize, with the written consent of their parents or guardians, minors over the age of fifteen (15) years but less than eighteen (18) years, to enter the licensed premises to attempt to purchase tobacco, tobacco products, tobacco related devices, electronic delivery devices, or nicotine or lobelia delivery devices. Minors used for the purpose of compliance checks shall be supervised by designated law enforcement officers or other designated city personnel. Minors used for compliance checks shall not be guilty of the unlawful purchase or attempted purchase or the unlawful possession of tobacco, tobacco products, tobacco related devices, or nicotine or lobelia delivery devices when such items are obtained as part of the compliance check. No minor used in compliance checks shall attempt to use a false identification misrepresenting the minor's age, and all minors lawfully engaged in a compliance check shall answer all questions about the minor's age asked by the licensee or his or her employee and shall produce any identification, if any exists, for which he or she is asked. Nothing in this section shall prohibit other compliance checks authorized by state or federal laws for educational, research or training purposes or required for the enforcement of a particular state or federal law. (Ord. 458, 12-3-2013) 3-2-10: CIVIL ENFORCEMENT: The license holder shall be responsible for the conduct of its agents or employees while they are on the licensed premises. Any violation of this chapter shall be considered an act of the license holder for purposes of imposing a civil penalty, license suspension or revocation. Each violation, and every day in which a violation occurs or continues, shall constitute a separate offense. (Ord. 458, 12-3-2013) 3-2-11: NOTICE OF VIOLATION: Upon discovery of a suspected violation, the Mendota Heights police department shall inform the city clerk of the suspected violation. The city clerk shall then send to the license holder, by mail, a written notice of the civil violation. The notice shall inform the license holder of the penalty and the license holder's right to request a hearing regarding the violation of this chapter pursuant to section 3-2-13 of this chapter. (Ord. 458, 12-3-2013) 3-2-12: PENALTIES: page 14 A. Licensees: Any licensee found to have violated this chapter or whose employee shall have violated this chapter shall be charged an administrative fine as set forth by resolution. B. Individuals: Individuals found to be selling tobacco to minors in violation of this chapter shall be charged an administrative fee of fifty dollars ($50.00). C. Misdemeanor And Other Prosecution: Nothing in this section shall prohibit the city attorney or county attorney from seeking prosecution as a misdemeanor for any violation of this chapter, or from enforcing any other applicable state or federal law or regulation in addition to or instead of any civil enforcement remedy that may be sought under this chapter. D. Penalties Reviewed Annually: Penalties in this section may be annually reviewed and new fine amounts adopted by resolution. (Ord. 458, 12-3-2013) 3-2-13: HEARINGS AND APPEALS: A. Request And Time For Hearings: 1. Following receipt of a notice of denial issued under section 3-2-3 of this chapter or a notice of violation and penalty issued under section 3-2-12 of this chapter or a notice of revocation, an applicant or license holder may request a hearing before the hearing officer appointed by the city council, or his/her designee. A request for hearing shall be made by the applicant or license holder in writing and filed with the city clerk within ten (10) days of the mailing of the notice of denial or alleged violation. Following receipt of a written request for hearing, the applicant or license holder shall be afforded an opportunity for a hearing before the hearing officer. 2. If a person accused of violating this chapter so requests, a hearing shall be scheduled, the time and place of which shall be published and provided to the accused violator. 3. Such hearing shall be held before a hearing examiner as determined by the city council and shall be open to the public. B. Findings And Actions: If, after the hearing, the applicant or license holder is found ineligible for a license, or in violation of this chapter, the hearing officer may affirm page 15 the denial, impose a fine, issue a suspension or revocation, or impose any combination thereof. The decision shall be in writing and set forth the reasons for the findings of the hearing officer. A copy shall be provided to the applicant or license holder. Likewise, if the hearing officer finds that no violation occurred or finds grounds for not imposing any penalty, such findings shall be recorded and a copy provided to the applicant or license holder. C. Decisions: If the hearing officer determines that a violation of this chapter did occur, that decision, along with the hearing officer's reasons for finding a violation and the penalty to be imposed under section 3-2-12 of this chapter, shall be recorded in writing. A copy shall be provided to the accused violator. Likewise, if the hearing officer finds that no violation occurred or finds grounds for not imposing any penalty, such findings shall be recorded and a copy provided to the acquitted accused violator. D. Appeals: Any appeal from the decision of the hearing officer must be filed with the district court within ten (10) days of the mailing of the hearing officer's decision. E. Default: If the applicant or license holder has been provided written notice of the denial or violation and if no request for a hearing is filed within the ten (10) day period, then the denial, penalty, suspension and/or revocation imposed pursuant to this chapter shall take immediate effect by default. The city clerk shall mail the notice of denial, fine, suspension and/or revocation to the applicant or license holder. (Ord. 458, 12-3-2013) 3-2-14: SEVERABILITY[PN10] If any section or provision of this ordinance is held invalid, such invalidity will not affect other sections or provisions that can be given force and effect without the invalidated section or provision. 3-2-15: EFFECTIVE DATE[PN11] This ordinance becomes effective on _______ *OR* the date of its publication, or upon the publication of a summary of the ordinance as provided by Minn. Stat. § 412.191, subd. 4, as it may be amended from time to time, which meets the requirements of Minn. Stat. § 331A.01, subd. 10, as it may be amended from time to time. page 16 page 17 DATE: April 3, 2018 TO: Mayor, City Council and City Administrator FROM: Kristen Schabacker, Finance Director SUBJECT: Fund Balance Policy Update INTRODUCTION At its April 3rd workshop, the Council will be asked to discuss updates to its policy for minimum fund balances. BACKGROUND In 2011, the City of Mendota Heights adopted a Fund Balance Policy. This policy recommends minimum balance levels for specific funds. During the 2016 audit it was noted that some of the funds were not meeting the recommended balances. The auditors have suggested that this policy be reviewed and updated. The existing Fund Balance Policy is attached for your review. The General Fund, Water Revenue Fund, Special Park Fund, Civil Defense Fund and the Street Light District Fund are the funds that are covered under this policy. At the end of 2016 there were two funds that were not meeting the recommended funding levels: Special Park Fund, and Street Light District Fund We are asking that the Council review the recommended fund balance levels. • General Fund - I recommend that the General Fund level be raised to 75% of current expenditures. This is an increase from what is previously recommended, but the 75% balance is looked upon favorably by the bond rating agencies. • Water Revenue Fund - I recommend that this fund balance be reduced from $200,000, to $100,000. This would cover expenses that are the responsibility of City when doing street reconstruction projects. Previously, when the City owned the distribution system, there was a need to have a larger amount of cash on hand. • Special Park Fund – This fund currently has a $200,000 recommended fund balance, but until the recent multifamily housing construction activity, the balance had commonly been less than $100,000. The current fund balance is $580,000. The Council should discuss would it would like to see in the future; a joint meeting with the Parks and Recreation Commission on May 9th may provide some additional clarity on that. Until then, I recommend retaining the current stated minimum. • Civil Defense Fund - I recommend no changes to this funding level. This fund is used for emergency preparedness expenditures and siren replacement; the current levy amount is $25,000, and the fund balance is approximately $100,000. page 18 • Street Light District – The 2018 budget provides for $53,000 levy; 2017’s levy was $20,000. The recommendation for a minimum fund balance was 50% of current expenditures. This fund currently does not meet this level of funding; there is currently a $25,000 deficit; however, we expect to receive $15,000 that is currently an account receivable. At this time we will monitor the fund and increase the levy to increase the fund balance for 2019. I recommend at fund balance of at least 25% of current expenditures. BUDGET IMPACT There is no budget impact in updating this policy. If there are changes, those will impact future levies. RECOMMENDATION Staff recommends that the Mendota Heights City Council discuss the Fund Balance Policy, and discuss whether the recommended fund balance levels should be adjusted. Any changes will then be incorporated into a formal policy, which would be presented for adoption at a future City Council meeting. page 19 page 20 page 21 page 22 To: Mayor and City Council From: Mark McNeill, City Administrator Subject: Future of Village Lots Date: April 3, 2018 COMMENT: At the April 3rd workshop, I would like the Council to discuss and give direction on the future of the Village lots which are owned by the City. The 150 unit apartment building proposal has been determined to not be a good fit for that location. Assuming that the City Council is still interested in the ultimate development of those properties, it should discuss what it would see as being appropriate: 1. Land use—is it assumed that only residential will be considered? 2. Density-- (how many units would be considered)? 3. Restrictions on Rental or Condo? 4. Treatment of Maple Street—retain in the current location, or relocate? How would the cost of relocation factor into a selling price? 5. Price—sell via a bid process, sell for the appraised value, or negotiate based on the taxable value of the finished development? 6. Should there be a minimum value required for taxation purposes? 7. Other criteria? After the above criteria are determined, to advertise its availability, should the City: • Hire a broker? • Advertise for RFP’s—signage, social and electronic media, traditional advertisoing? • Contact again the several unsolicited proposals currently in hand? We look forward to your discussion of these, and other considerations. Mark McNeill City Administrator page 23