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2023-08-07 City Council Agenda Packet City of Albertville Council Agenda Monday, August 7, 2023 City Council Chambers 7 pm 6:15 pm – Council Workshop for 2024 Preliminary Budget – Council Chambers PUBLIC COMMENTS -The City of Albertville welcomes and encourages public input on issues listed on the agenda or of general community interest. Citizens wishing to address the Council regarding specific agenda items, other than public hearings, are invited to do so under Public Forum and are asked to fill out a “Request to Speak Card”. Presentations are limited to five (5) minutes. 1. Call to Order 2. Pledge of Allegiance – Roll Call Pages 3. Recognitions – Presentations - Introductions 4. Public Forum – (time reserved 5 minutes) 5. Amendments to the Agenda 6. Consent Agenda All items under the Consent Agenda are considered to be routine by the City staff and will be enacted by one motion. In the event an item is pulled, it will be discussed in the order it is listed on the Consent Agenda following the approval of the remaining Consent items. Items pulled will be approved by a separate motion. A. Approve the July 17, 2023, regular City Council Workshop minutes as presented. 3-4 B. Authorize the Monday, August 7, 2023, payment of claims as presented, except bills specifically pulled which are passed by separate motion. The claims listing has been provided to City Council as a separate document and is available for public view at City Hall upon request. 5 C. Approve a Special Event Permit and Temporary Liquor License for the Albertville Lions for their Annual Cruisin’ & Rockin’n Car Show on September 9, 2023 from 2 to 9 pm. 6-7 D. Approve the Crow River Sportsmen’s Club Lawful Gambling Exempt Permit Application for their event to be held at St. Albert Parish Center located at 5700 Lander Avenue NE on September 11, 2023. 8 E. Approve Payment Estimate No. 1 to Omann Contract in the amount of $212,760.13 for the 2023 Street Improvement project. F. Reduce Letter of Credit No. 555, held as security for Advanced Volumetric Alliance, LLC, to no less than $105,600, conditioned on any outstanding balances owed to the City being paid in full. 9 7. Public Hearing A. Public Hearing – Interim Ordinance to Establish Moratorium for Cannabis Business 10-15 • Mayor to open the public hearing. • Motion to close the public hearing. (Motion to adopt Ordinance No. 2023-09 approving an Interim Ordinance imposing a Moratorium on the Operation of Cannabis Businesses and the accompanying summary Ordinance for publication.) 8. Wright County Sheriff’s Office – Updates, reports, etc. City of Albertville City Council Agenda Monday, August 7, 2023 Page 2 of 2 9. Department Business A. City Council 1. Committee Updates (STMA Arena, Planning, JPWB, Parks, Fire Board, FYCC, etc.) B. Building – None C. City Clerk 1. Consider Amendments to Title 4, Chapter 3 Gambling Ordinance 16-25 (Motion to Adopt Ordinance No. 2023-10 amending Title 4, Chapter 3 of the Albertville City Code related to Gambling within the City of Albertville and approve summary ordinance for publication.) D. Finance – None E. Fire – None F. Planning and Zoning – None G. Public Works/Engineering – None H. Legal 1. Cannabis Prohibition in Public Places 26-31 (Motion to adopt Ordinance No. 2023-11 establishing Title 6, Chapter 7, of the Albertville City Code Prohibiting the Public Use of Hemp and Cannabis Products and approve summary of Ordinance for publication.) 2. Joint Powers Agreement with Wright County for Enforcement of Cannabis 32-36 (Motion to Approve Joint Powers Agreement between the County of Wright and the City of Albertville for the enforcement and regulation of Cannabis.) 3. Ordinance Regulating Tetrahydrocannabinol Products 37-47 (Motion to adopt Ordinance No. 2023-12 amending the Albertville City Code to Regulate Tetrahydrocannabinol Products and approve summary Ordinance for publication.) I. Administration 1. City Administrator’s Update 48-49 10. Announcements and/or Upcoming Meetings August 8 Planning Commission, 7 pm – Meeting Cancelled August 14 STMA Arena Board, 6 pm August 21 Council Budget Workshop, 6:15 pm (if needed) August 21 City Council, 7 pm August 28 Joint Power Water Board, 6 pm Parks Committee, 7 pm September 4 City Hall closed in observance of Labor Day September 5 City Council, 7 pm (Tuesday) 11. Adjournment ALBERTVILLE CITY COUNCIL WORKSHOP DRAFT MINUTES July 17, 2023 – 6:15 pm Council Chambers Albertville City Hall 1.Call to Order Mayor Hendrickson called the workshop to order at 6:15 pm. Present: Mayor Hendrickson, Councilmembers Cocking, Hayden, Olson and Zagorski. Staff Present: City Administrator Nafstad, Fire Chief Bullen, Finance Director Lannes and City Clerk Luedke. Others Present: Mr. Tyler See, Abdo Eick & Meyers LLP 2. Long Range Plan Presentation by Abdo Eick & Meyers LLP Mr. See introduced the item and explained the process used in developing the City’s long range financial plan. He presented the estimated property taxes through the year 2028 and went through the assumptions that ABDO and City staff reviewed for the projected numbers which included the tax levy information, tax rate comparison, cash balances and the debt balances. Mr. See also reviewed the capital outlay through 2025 which included the Wastewater Treatment Facility and two street reconstruction projects. He answered questions from Council. City Administrator Nafstad provided information on the proposed budget and answered questions from Council Finance Director Lannes and Chief Bullen answered questions from Council regarding the long range financial plan. There was Council discussion regarding the proposed budget, Capital fund and the proposed levy amount and they thanked Mr. See for the Long Range Plan presentation. 3.Law Enforcement Contract Coverage Review City Attorney Couri was not present at the Budget Workshop. This item was moved to the next Budget Workshop. 4. 2024 Preliminary Budget Presentation Finance Director Lannes presented an overview of the budget process and indicated the preliminary budget must be adopted in September. She said once the preliminary levy was adopted it cannot be increased; however, it could be reduced. Ms. Lannes also provided the budget history, an overview of 2024 preliminary tax levy and the 2024 revenue and expense changes. She reported the debt service levy increased by 17.48% ($111,461), the general operations levy increased by 13.42% ($338,007), the capital levy increased by -1.45% ($23,723) for a total projected levy increase of 8.95% ($425,745). Agenda Page 3 City Council Workshop Draft Minutes Page 2 Meeting of July 17, 2023 Ms. Lannes also provided details on where the budget revenue was received from and where the tax dollars are spent which include public safety, general government operations, debt services and capital reserves. She explained in 2024, the City would receive a one-time payment from the State to be used for public safety. She answered questions from Council. City Administrator Nafstad provided additional information on the 2024 preliminary budget, the Wright County Law Enforcement contract and the 2023 special assessment the City received from the Sheriff’s Department. He answered questions from Council and said the next Council Budget Workshop was scheduled for August 7, 2023 at 6:15 pm. Fire Chief Bullen answered questions from Council regarding the Wright County Law Enforcement agreement and 2023 special assessment from Wright County. There was Council discussion regarding the preliminary 2024 budget, the increase to the Wright County Law Enforcement agreement and the special assessment from the Wright County Sheriff’s Department. 5.Adjournment MOTION made by Councilmember Olson, second by Councilmember Hayden to adjourn the meeting at 7 pm. Ayes: Cocking, Hayden, Hendrickson, Olson and Zagorski. Nays: None. The motion carried. Respectfully submitted, _____________________________ Kristine A. Luedke, City Clerk Agenda Page 4 Mayor and Council Request for Action August 7, 2023 SUBJECT: CONSENT – FINANCE – PAYMENT OF BILLS RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Authorize the Monday, August 7, 2023, payment of the claims as presented except the bills specifically pulled, which are passed by separate motion. The claims listing has been provided to Council as a separate document. The claims listing is available for public viewing at City Hall upon request. BACKGROUND: The City processes claims on a semi-monthly basis. The bills are approved through their respective departments and administration and passed onto the City Council for approval. KEY ISSUES: • Account codes starting with 810 are STMA Arena Expenses/Vendors (bolded) and key issues will be presented in the claims listing document. POLICY/PRACTICES CONSIDERATIONS: It is the City’s policy to review and approve payables on a semi-monthly basis. FINANCIAL CONSIDERATIONS: City staff has reviewed and recommends approval of payments presented. LEGAL CONSIDERATIONS: The Mayor and Council have the authority to approve all bills pursuant to Minnesota State Law, which requires all bills to be paid in a timely manner, generally within 30 days unless one party determines to dispute the billing. Responsible Person: Tina Lannes, Finance Director Submitted through: Adam Nafstad, City Administrator-PWD Attachment: • List of Claims (under separate cover) Agenda Page 5 Mayor and Council Request for Action ______________________________________________________________________________ August 7, 2023 SUBJECT: CONSENT – CITY CLERK – SPECIAL EVENT PERMIT AND TEMPORARY LIQUOR LICENSE APPLICATION FOR THE ALBERTVILLE LIONS RECOMMENDATION: It is respectfully requested that the Mayor and City Council consider the following: MOTION TO: Approve a Special Event Permit and Temporary Liquor License for the Albertville Lions for their Annual Cruisin’ & Rock’n Car Show on September 9, 2023, from 2 pm to 9 pm. BACKGROUND: The Albertville Lions have submitted a special event permit and temporary liquor license application for their annual classic car show scheduled for Saturday, September 9, 2023. The event will be held in the Albertville Central Park area including the Farmer’s Market Pavilion and the Depot. The Lions are not requesting any road closures with all of the show vehicles utilizing the paved parking lot located by the baseball fields. The event set up will begin immediately following the Open Streets event. The car show will include a variety of food options and live music. The Albertville Lions have also submitted a temporary liquor license for the event. KEY ISSUES: • The annual car show event will take place in Central Park, the Farmer’s Market Pavilion and the Depot. The Lions are not requesting any road closures during the event. • The event will be held from 2 pm to 9 pm with event tear down to conclude by 9:30 pm. • The Lions have also submitted a one-day temporary liquor license application for the event and has provided the required certificate of liability insurance. • The estimate attendance at the event will be between 300 and 500 people. • Outdoor special events shall only occur between April 1 to November 1 of each year. POLICY/PRACTICES CONSIDERATIONS: Special events permits and temporary liquor licenses are subject to the approval of the Albertville City Council. LEGAL CONSIDERATIONS: The applicant shall comply with the regulations for a special event permit and temporary liquor license. Responsible Person: Kris Luedke, City Clerk Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: • Site Map • The special event permit and temporary liquor license application are on file in the City Clerk’s Office and are available upon request. Agenda Page 6 Agenda Page 7 Mayor and Council Request for Action August 7, 2023 SUBJECT: CONSENT – CITY CLERK – CROW RIVER SPORTMEN’S CLUB LAWFUL GAMBLING PERMIT RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Approve the Crow River Sportsmen’s Club Lawful Gambling Exempt Permit Application for their event to be held at St. Albert Parish Center located at 5700 Lander Avenue NE on September 11, 2023. BACKGROUND: The Crow River Sportsmen’s Club has submitted a lawful gambling permit for their event to be held at St. Albert Parish Center in Albertville. The organization is a non- profit organization and approval of their application will allow them to conduct lawful gambling at St. Albert Parish Center on September 11, 2023. KEY ISSUES: • The Crow River Sportsmen’s Club is requesting to hold a raffle at their event on September 11, 2023. • The Crow River Sportsmen’s Club is a qualifying non-profit organization. • The Minnesota Gambling Control Board ultimately issues this type of license, but requires City approval prior to issuing the license. FINANCIAL CONSIDERATIONS: There is no financial revenue collected from the applicant for the gambling permit. LEGAL CONSIDERATIONS: It is the City’s policy to review and approve or deny gambling permit applications for gambling activity within the City. Responsible Person: Kris Luedke, City Clerk Submitted through: Adam Nafstad, City Administrator-PWD Attachments: • LG220 Application for Lawful Gambling Permit in on file in the City Clerk’s Office Agenda Page 8 Mayor and Council Request for Action August 7, 2023 SUBJECT: CONSENT – AVA - LETTER OF CREDIT REDUCTION NO. 3 RECOMMENDATION: It is respectfully requested that the Mayor and Council consider approval of the following motion: MOTION TO: Reduce Letter of Credit No. 555, held as security for Advanced Volumetric Alliance, LLC, to no less than $105,600, conditioned on any outstanding balances owed to the City being paid in full. BACKGROUND: The Developer has requested a reduction to the Letter of Credit held for the AVA project. The Letter of Credit is held as performance and warranty security for the site improvements and is currently in the amount of $186,635. Assuming the developer is current with all fees owed to the City and based on work completed to date, it is recommended that Letter of Credit No.555 be reduced to no less than $105,600. The reduced balance is believed to be sufficient surety and is consistent with the development agreement. KEY ISSUES: • This reduction does not constitute acceptance of improvements. • Karmen Ave NE has outstanding punchlist work, which has been accounted for in this reduction. POLICY CONSIDERATIONS: It is City policy to have all Letter of Credit reductions approved by the City Council FINANCIAL CONSIDERATIONS: There are no financial implications for this request LEGAL CONSIDERATIONS: The City has the legal authority under the development agreement to reduce the Letter of Credit upon completion of the required improvements or deny requests for reduction if the required improvements are found unacceptable. Submitted Through: Adam Nafstad, City Administrator-PWD On File: • LOC Reduction History Agenda Page 9 Mayor and Council Request for Action August 7, 2023 SUBJECT: PUBLIC HEARING – LEGAL – CANNABIS INTERIM MORATORIUM RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Adopt Ordinance No. 2023-09 approving an Interim Ordinance imposing a Moratorium on the Operation of Cannabis Businesses. BACKGROUND: In the 2023 Legislative session, the Legislature passed and the Governor signed into law a bill legalizing the cultivation, manufacturing, sale and consumption of cannabis (marijuana). While cannabis is legal to grow and possess in smaller quantities and to smoke, it is not yet legal to sell cannabis products within the state other than lower concentration edibles that were legalized in 2022. The 2023 law requires the state to establish an Office of Cannabis Management (OCM) that will promulgate rules for the cultivation, manufacture and sale of cannabis sometime around January, 2025, although that date is not viewed as firm at this point. Until those rules are adopted, the sale and manufacturing of cannabis is not permitted in Minnesota. The rules to be promulgated by OCM are likely to state with more precision how Cities may regulate the cultivation, sale and manufacturing of cannabis products, including the preparation of model ordinances for cities to use in regulating cannabis. The 2023 legislation allows municipalities to place reasonable time, place and manner restrictions on cannabis products, but currently it is not clear to what extent these restrictions can be imposed. The legislation does not let a municipality ban the sale of cannabis, but does allow a City of Albertville’s size to restrict the number of cannabis retailers to no more than one retailer if the City so chooses. It may also restrict where such cannabis products are grown, manufactured and sold within the City. Cannabis is now legal to smoke on private property and to grow for private use (not for resale in Minnesota at this time). The City will not be able to prohibit growing cannabis, possessing it or smoking it on private property as the State has essentially preempted the City from modifying State law. City Staff recommends the City adopt a moratorium on all aspects of cannabis businesses including the commercial cultivation, manufacturing and sale of cannabis so that the City can have the time to decide how it may want to regulate cannabis in the City, how many retail outlets it may want to allow in the City, where it may want to allow such retail outlets to operate, and to review and consider the model ordinances that will be issued by OCM. The 2023 legislation specifically allows the City to place a moratorium on cannabis businesses until January, 2025. KEY ISSUES: • The new Cannabis law contains many uncertainties that are likely to be worked out between now and January 1, 2025. Agenda Page 10 Mayor and Council Request for Action – August 7, 2023 Public Hearing – Cannabis Interim Moratorium Page 2 of 2 • The City has the authority to place a moratorium on cannabis businesses to give the City time to work out how it wants to regulate cannabis businesses. • The moratorium can last until January 1, 2025. • The moratorium cannot be enacted until after the public hearing scheduled for August 7, 2023 is held. • The moratorium will prohibit the commercial cultivation, manufacture, wholesale or retail sale of cannabis until January 1, 2025. • This moratorium will not impact in any way the sale of THC edibles in the City. That subject is regulated by the interim ordinance passed last September and by any additional ordinances passed by the City regulating edibles. POLICY/PRACTICES CONSIDERATIONS: The City has previously placed a moratorium on THC edibles to give the City time to clear up some of the uncertainties related to edible sales. Staff recommends doing the same for cannabis business operations until the additional regulations are issued by the State. FINANCIAL CONSIDERATIONS: Except for consultant time that will be dedicated to studying and preparing ordinance regulations, placing a moratorium on cannabis businesses is expected to have no financial impact upon the City. LEGAL CONSIDERATIONS: Because the legislation created a whole new state agency that is expected to issue an entirely new set of rules, and because this process is expected to take about 18 months, there is currently considerable uncertainty about the extent to which the City can regulate cannabis businesses. Placing a moratorium on cannabis businesses until more of these rules can be developed will give the City a chance to determine how and if it wants to regulate cannabis businesses in the City. Department/Responsible Person: Mike Couri, City Attorney Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: • Interim Ordinance No. 2023-09 Imposing a Moratorium On The Operation Of Cannabis Businesses. Agenda Page 11 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA ORDINANCE NO. 2023-09 AN INTERIM ORDINANCE IMPOSING A MORATORIUM ON THE OPERATION OF CANNABIS BUSINESSES The City County of the City of Albertville, Minnesota Ordains: WHEREAS, the Minnesota Legislature recently enacted 2023 Minnesota Session Law, Chapter 63 – H.F. No. 100 (the “Act”), which outlined legislation relating to the legal use of cannabis including, but not limited to, the establishment of the Office of Cannabis Management (“OCM”), legalizing and limiting the possession and use of cannabis and certain hemp products by adults, providing for the licensing, inspection, and regulation of cannabis businesses and hemp businesses, taxing the sale of certain cannabis products, establishing grant and loan programs, amending criminal penalties, providing for expungement of certain convictions and providing for temporary regulation of certain edible cannabinoid products; and WHEREAS, the Act allows local units of government, like the City of Albertville (the “City”), to regulate cannabis businesses by: (1) requiring local registration of certain cannabis businesses operating retail establishments, (2) adopting reasonable restrictions on the time, place, and manner of the operation of cannabis businesses, provided that such restriction do not prohibit the establishment or operation of cannabis businesses, (3) limiting the number of certain cannabis businesses based on the population of the community, and (4) prohibiting the operation of cannabis business within 1,000 feet of a school, 500 feet of a day care, residential treatment facility, or an attraction within a public park that is regularly used by minors, including a playground or athletic field; and WHEREAS, the Act requires the OCM, which was established effective July 1, 2023, to work with local governments to assist in developing model ordinances for reasonable restrictions on the time, place, and manner of the operation of cannabis businesses. The Act also requires the OCM to establish additional rules and regulation relating to the operation of cannabis businesses; and WHEREAS, the City will benefit from reviewing and analyzing the OCM’s model ordinances, rules, and regulations before making any decisions related to the regulation of cannabis businesses within the City; and WHEREAS, the Act, by enacting Minn. Stat. § 342.13(e), allows a local unit of government that is conducting studies or has authorized a study to be conducted or has held or scheduled a hearing for the purposes of considering adoption or amendment of reasonable restrictions on the time, place, and manner of the operation of cannabis businesses to adopt an interim ordinance applicable to all or part of its jurisdiction for the purpose of protecting the planning process and the health, safety, and welfare of its citizens. The interim ordinance may regulate, restrict, or prohibit the operation of cannabis businesses within the jurisdiction of a local unit of government until January 1, 2025; and Agenda Page 12 City of Albertville Ordinance No. 2023-09 Meeting of August 7, 2023 Page 2 WHEREAS, given the uncertainty regarding the model ordinances to be developed by the OCM and the broad scope of the changes to Minnesota law brought about by the Act, the City desires to adopt an interim ordinance for the purpose of protecting the planning process and the health, safety, and welfare of its citizens; and WHEREAS, the City desires to conduct a study for the purpose of considering the adoption or amendment of reasonable restrictions on the time, place, and manner of the operation of cannabis businesses as well as the other regulations local units of government may adopt under the Act; and WHEREAS, the City, after providing at least ten (10) days published notice, held a public hearing regarding the consideration and adoption of an interim ordinance prohibiting the operation of cannabis businesses within the City until January 1, 2025. NOW, THEREFORE, the Albertville City Council adopts the following findings: 1. The recitals above are incorporated into the findings. 2. The City desires to foster growth and development of businesses within the City and acknowledges the changes brought by the Act to potential cannabis businesses. 3. The City has determined to undertake a study to consider: (1) the impact of cannabis businesses on the growth and development of the City; and (2) any reasonable restrictions on the time, place, and manner to protect the planning process and the health, safety, and welfare of the City’s citizens. 4. The City Council needs an opportunity to conduct a study focusing on the appropriateness of cannabis businesses, codify appropriate ordinance revisions, consider model ordinances to be developed by the OCM, and schedule any public hearings, if necessary. 5. The City desires to impose a moratorium on the operation of cannabis businesses within the City until January 1, 2025 in order to adopt regulations and ordinances consistent with state law and guidance, facilitate further consideration of compatibility with future planning and development within the City, and determine if it is reasonable to adopt restrictions on the time, place, and manner on the operation of cannabis businesses. 6. An interim ordinance, pursuant to Minn. Stat. § 342.13(e), is necessary to allow the City time to update its ordinances and regulations, ensure compliance with state law, and protecting the planning process and the health, safety, and welfare of the City’s citizens. 7. An interim ordinance temporarily prohibiting the operation of cannabis businesses within the City until January 1, 2025 is necessary to protect the planning process and the health, safety, and welfare of the City’s citizens. Agenda Page 13 City of Albertville Ordinance No. 2023-09 Meeting of August 7, 2023 Page 3 8. The City intends to lift or scale back the moratorium as quickly as new ordinances and regulations are adopted. NOW, THEREFORE, pursuant to Minn. Stat. § 342.13(e), the Albertville City Council hereby ordains: Section 1. Interim Ordinance. 1. Definitions. For the purpose of this Ordinance, the following terms mean: Act: The 2023 Minnesota Session Laws, Chapter 63 (H.F. No. 100). Cannabis Business(es): A business as defined in Minn. Stat. § 342.01, subd. 14. City: The City of Albertville. Edible Cannabinoid Product: A product as defined in Minn. Stat. § 151.72, subd. 1(c) OCM: The Office of Cannabis Management, establish as set forth in Minn. Stat. § 342.02, subd. 1. Ordinance: This interim ordinance, which is adopted pursuant to Minn. Stat. § 342.13(e). 2. Study Authorized. The City Council hereby authorizes and directs the City Administrator to have City staff and consultants conduct a study regarding the adoption or amendment of reasonable restrictions on the time, place, and manner of the operation of Cannabis Businesses, as well as the other potential local regulations allowed under the Act, and report to the City Council on the potential regulation of Cannabis Businesses. The study shall include, but is not limited to, the model ordinances and regulations the OCM is directed to draft under Minn. Stat. § 342 and any other matters staff may determine are relevant to the City Council’s consideration of regulating Cannabis Businesses. City staff can then make recommendations to the City Council as to if and what types of regulations should be adopted. 3. Moratorium. A moratorium is hereby imposed regarding the operating of Cannabis Businesses within the City. During the term of this Ordinance, no business, person, or entity may establish or operate a Cannabis Business within the jurisdictional boundaries of the City. For the duration of this moratorium, the City shall not accept, process, or act on any application, site plan, building permit, zoning requires, or other approval, including any requested confirmation, certification, approval, or other request from the OCM or other governmental entity requesting the City review any application or proposal for a business proposing to engage in the operation of a Cannabis Business. 4. Violation. During the term of this moratorium, it is a violation of the Ordinance for any business, person, or entity to establish or operate a Cannabis Business within the City. 5. Enforcement and Penalty. The City may enforce this Ordinance by injunction or any other appropriate civil remedy in any court of competent jurisdiction. A violation of this Ordinance shall constitute a misdemeanor. Each day a violation occurs shall be considered a separate offense. A violation may result in the City reporting the violation to the OCM if relevant to the OCM licensing. Agenda Page 14 City of Albertville Ordinance No. 2023-09 Meeting of August 7, 2023 Page 4 6. Exceptions. The moratorium imposed by this Ordinance does not apply to: (1) the continued operation of a business as part of the Medical Cannabis Program administered by the Minnesota Department of Health that was lawfully operating within the City prior to July 1, 2023; or (2) the lawful sale of Edible Cannabinoid Products in compliance with Minnesota Statutes, section 151.72. Nothing in this Ordinance exempts a business, person, or entity that is selling Edible Cannabinoid Products from having to comply with all requirements and prohibitions of applicable laws and ordinances. 7. Duration. This Ordinance shall become effective on the first day of publication after adoption and shall remain in effect until January 1, 2025. This Ordinance may be repealed earlier upon the effective date of an ordinance adopting or amending reasonable restrictions on the time, place and manner of the operation of a Cannabis Business within the City or by resolution of the City Council terminating this Ordinance prior to the expiration date. 8. Severability. Every section, provision, and part of this Ordinance is declared severable from every other section, provision, and part thereof. If any section, provision, or part of this Ordinance is held to be invalid by a court of competent jurisdiction, such judgment shall not invalidate any other section, provision, or part of this Ordinance. 9. Effective Date. This ordinance shall take effect immediately upon its adoption. Section 2. Summary Publication. At least four-fifths of the City Council’s member direct the City Administrator to publish only the title and summary of this Ordinance as follows: “AN INTERIM ORDINANCE IMPOSING A MORATORIUM ON THE A ON THE OPERATION OF CANNABIS BUSINESSES. It is the intent and effect of this Ordinance to prohibit the operation of cannabis businesses until January 1, 2025 so the City of Albertville can study the effects of such activities, the appropriateness of existing regulations and designations, and ensure that regulations and designations are consistent with existing law and adequately protect the public health, safety, and welfare.” A printed copy of the ordinance is available for inspection by any person during regular office hours at City Hall. Adopted by the City Council of the City of Albertville this 7th day of August 2023. ___________________________ Jillian Hendrickson, Mayor ATTEST: _________________________ Kristine A. Luedke, City Clerk Agenda Page 15 Mayor and Council Request for Action August 7, 2023 SUBJECT: CITY CLERK – CONSIDER AMENDMENTS TO TITLE 4, CHAPTER 3 GAMBLING ORDINANCE RECOMMENDATION: It is respectfully requested that the Mayor and City Council consider the following: MOTION TO: Adopt Ordinance No. 2023-10 amending Title 4, Chapter 3 of the Albertville City Code related to Gambling within the City of Albertville and approve summary ordinance for publication. BACKGROUND: The City’s gambling ordinance has not been updated in several years. City staff has reviewed the current Code and recommends updating this Chapter of the code due to changes in the State Law that governs licensing of gambling organizations. With the update, the City would no longer require organizations conducting lawful gambling to obtain a City license but the City Council still retains authority to approve a lawful gambling premise permit prior to the applicant submitting it to the Minnesota Gambling Control Board which issues the licenses. The Lawful Gambling Premise Permits are perpetual with the Control Board. According to the Minnesota Gambling Control Board, their licensing department issues a Lawful Gambling Premise Permit upon verifying the applicant’s lease is accurate and a resolution from the City is approved. The Board also verifies there is a valid liquor license if the applicant is applying for more than paper pull tabs. The Control Board conducts a background check on the gambling managers on new non-profit organizations applying for a license. Regarding the exempt permits, City staff receives many requests for approval of exempt permit applications, example of these would be raffles at the local church. Upon reviewing the Minnesota Statute 349.166, Subd. 2 Exemptions, Exempt Permits are allowed as outlined in the Statute. With an amendment to the Code, the City Clerk would be allowed to sign-off on the exempts permits avoiding delays for the applicant to send their request to the Minnesota Gambling Control Board. KEY ISSUES: • The majority of the City’s Gambling Code has not been updated since 2005. • The Minnesota Gambling Control Board issues Lawful Gambling Premise Permit upon verifying the applicant’s lease is accurate and a resolution is approved by the City. • Regarding Exempt Permit application, the Clerk would be allowed to sign-off on the application. FINANCIAL CONSIDERATIONS: The amendment would have minimal financial impact to the City. LEGAL CONSIDERATIONS: The Mayor and City Council have the authority to consider and approve City licenses and amendments to the Albertville City Code. Agenda Page 16 Mayor and Council Communication – August 7, 2023 Clerk – Amendment to Gambling Code Page 2 of 2 Responsible Person: Kris Luedke, City Clerk Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: • Title 4, Chapter 3, Gambling with underline/overstrike • Ordinance No. 2023-10 Gambling Ordinance • Summary of Ordinance No. 2023-10 Agenda Page 17 CHAPTER 3 LAWFUL GAMBLING SECTION: 4-3-1 Bingo Games 4-3-2: Charitable Gambling 4-3-1: BINGO GAMES: A. Adoption Of State Regulations; Application Of Provisions: The revisions of Minnesota statutes sections 349.11 through 349.23 relating to the game of bingo are adopted and made a part of this section as if set out in full. In addition, the regulations of this section apply to the conduct of bingo within the city. B. License Required; Exceptions: The unlicensed conduct of bingo within the city is prohibited, except as provided in this section for bingo operations of only four (4) times per year or less by an authorized organization. Any organization authorized by law to conduct bingo occasions may do so only after applying for and receiving a license from the council. C. Application For License: The license application shall state where the games will be played and the dates and hours for which permission to play the game is requested. The application shall be verified by a duly authorized officer of the organization and by the designated bingo manager. No applications shall be accepted by the city unless accompanied by the full annual license fee. (Ord. 1983-1, 1-3-1983) D. License Fee: The annual license fee shall be established in section 3-1-3 of this code. (Ord. 2017-01, 1-3-2017) E. Bond Requirements: No bingo license shall be issued until the bingo manager furnishes a fidelity bond in the sum of ten thousand dollars ($10,000.00) in favor of the organization. The bond shall be conditioned on the faithful performance by the manager of his duties. The bond shall not be cancelable, except upon thirty (30) days' written notice to the city. The council may, by unanimous vote, agree to waive the fidelity bond requirement. If such waiver is granted, the license must be endorsed to indicate such action. F. Suspension Or Revocation Of License: No licensee shall have a vested right in any bingo license, and such license may be suspended or revoked by the council at any time upon a showing that: 1. Any misrepresentation has been made in the license application or any report required of the licensee; or 2. The licensee has violated or caused to be violated any provisions of this section or the state bingo law 1 . (Ord. 1983-1, 1-3-1983) 4-3-1 PURPOSE: The purpose of this section is to closely regulate and control the conduct of charitable lawful gambling within the City, to prevent its commercialization, to ensure the integrity of operations, and to provide for the use of net profits only for lawful purposes. city in conformance with Minnesota statutes sections 349.11 through 349.22, and to adopt more stringent regulations for lawful gambling as authorized by Minnesota statutes section 349.213(1). (Ord., 1989) 4-3-2 STATE REGULATIONS ADOPTED; CITY MAY BE MORE RESTRICTIVE: The provisions of Minnesota Statute ch. 349, as amended from time to time, with reference to the definition of terms, conditions of operation, provisions relating to sales, and all other matters pertaining to lawful gambling are hereby adopted by reference and are made a part of this ordinance Agenda Page 18 as if set out in full. It is the intention of the Council that all future amendments of Minn. Stat. ch. 349, are hereby adopted by reference or referenced as if they had been in existence at the time this ordinance was adopted. The City Council is authorized by the provision of Minnesota Statute section 349.213 to impose, and has imposed in the section, additional restrictions on gambling within its limits beyond those contained in Minnesota Statute ch. 349. B. Licensee Investigation: 1. Investigation Required: Pursuant to Minnesota statutes section 349.16(8), the city shall conduct an investigation of every qualified organization applying for or renewing its state license with the Minnesota state gambling board to conduct charitable gambling in the city. (Ord., 1989; amd. 2005 Code) 2. Fee: Pursuant to Minnesota statutes section 349.16(8), an investigation fee as established in section 3-1-3 of this code shall be charged to every state charitable gambling licensee requesting approval to conduct charitable gambling in the city. Said fee shall be nonrefundable. (Ord. 2017-01, 1-3-2017) 3. Conduct Of Investigation: The investigation shall be conducted by the chief of police or his authorized representative. 4. Time Of Investigation: The investigation shall be completed within fourteen (14) days from the date that the licensee provides the city with the required information and paid the investigation fee required by this subsection. 5. Information Required: A state license for charitable gambling shall not be approved for or renewed for use in the city until the investigation is completed and received by the city council and the investigation fee has been paid as required by this subsection. The investigation shall be based on the following information which the licensee shall provide to the city on forms approved by the city: a. The official, legal name of the organization. b. The business address. c. The business telephone number. d. The address of the premises where the lawful gambling will be conducted. e. The names, addresses and titles of the organization's executive officers. f. Proof of Minnesota or internal revenue service tax exempt status. g. An indication of whether the applicant is chartered by parent organization. h. If the organization is not a Minnesota organization, the address of the location in Minnesota where the organization's gambling records will be kept. i. The name and address of the gambling manager. j. A copy of the required fidelity bond for gambling managers. k. An indication of whether the organization owns or leases the premises where the lawful gambling will be conducted. l. An indication of the class of license applied for. m. The number of active members. n. If incorporated, the number of the articles of incorporation and where filed. o. The federal ID number, if any. p. An "authorization to inspect bank records" of the gambling bank account of the organization, and an itemization of all expenditures made from net profits for the year preceding the year of approval or renewal. (Ord., 1989) q. A consent that city law enforcement officers or agents of the state gambling board may enter upon the site to observe the lawful gambling being conducted and to enforce the law for any unauthorized game or practice. (Ord., 1989; amd. 2005 Code) Agenda Page 19 r. A copy of the lease agreement for the premises where the organization will conduct lawful gambling if the premises is not owned by the organization. s. A copy of the written internal accounting and administrative control system relative to gambling operations or, if the licensee is requesting an approval for renewal of its license, a sworn affidavit from an executive officer that said control system has not been changed from the prior year. t. Such additional information as is necessary to properly identify the applicant and to ensure compliance with Minnesota statutes sections 349.11 to 349.22. (Ord., 1989) 4-3-3 DEFINITIONS: For the purpose of this section the terms used herein shall have the meanings defined or as used in Minnesota Statue ch. 349. 4-3-4 PROHIBITIONS: There shall be no gambling in the City except in accordance with the provisions of this section and the provisions of Minnesota Statutes ch. 349 and rules adopted pursuant thereto. No organization may conduct lawful gambling in the City unless such organization is in full compliance with the licensing and permitting requirements of Minnesota Statute ch. 349. 4-3-5 APPLICATION OF PROVISIONS; EXEMPTIONS: This section shall be construed to regulate all forms of lawful gambling within the City except the following as provided for by Minnesota Statutes allowed by Minnesota Statutes 349.166, subd.2: A. Bingo, if it is conducted: 1. By an organization in connection with a county fair, the state fair, or a civic celebration and is not conducted for more than 12 consecutive days and is limited to no more than four separate application for activities applied for and approved in a calendar year; or 2. By an organization that conducts bingo on four or fewer days in a calendar year. An organization that holds a license to conduct lawful gambling under this chapter may not conduct bingo under this subdivision. B. Bingo may be conducted within a nursing home or a senior citizen housing project or by a senior citizen organization if the prizes for a single bingo game do not exceed ten dollars ($10), total prizes awarded at a single bingo occasion do not exceed two hundred dollars ($200), only members of the organization or residents and their guests of the nursing home or housing project are allowed to play in a bingo game, no compensation is paid for any persons who conduct the bingo, and a manager is appointed to supervise the bingo. C. Raffles may be conducted by an organization if the value of all raffle prizes awarded by the organization in a calendar year does not exceed one thousand five hundred dollars ($1,500) or, if the organization is a 501(c)(3) organization, if the value of all raffle prizes awarded by the organization at one event in a calendar year does not exceed five thousand dollars ($5,000). D, The City Clerk is authorized to approve lawful gambling as exempt from the requirements for a City license under this section: 1. An organization that conducts lawful gambling on five (5) or fewer days in a calendar year. 2. An organization that does not award more than fifty thousand dollars ($50,000) in prizes for lawful gambling in a calendar year. Agenda Page 20 4-3-6 NUMBER OF LICENSES AND PERMITS: A. No organization licensed pursuant to Minnesota Statutes ch. 349 may conduct lawful gambling at more than four (4) locations within the City. B. No more that one (1) premises permit will be approved for the conduct of lawful gambling on any single premises. 4-3-7 ELIGIBLE LICENSEES: Only local nonprofit organizations located within the City of Albertville which have operated for at least three (3) years within the City, have at least fifteen (15) active members, have a license to conduct lawful gambling from the State Gambling Board, and comply with Minnesota statutes chapter 349 and this section, shall be permitted to conduct charitable gambling within the City. In the event that no local nonprofit organization chooses to operate an eligible charitable lawful gambling site, the City Council may license a nonlocal, nonprofit organization which complies with all applicable state and local regulations. (Ord. 1997-7, 5-6-1997; amd. 2005 Code) D. Gambling In Liquor Establishments: No holder of a retail on sale intoxicating liquor license shall keep, possess, or operate or permit the keeping, possession, or operation of any slot machine, dice or any gambling device or apparatus on the licensed premises, and he shall not permit any gambling therein. This subsection shall not prohibit the conduct of charitable gambling on the licensed premises as defined and regulated by Minnesota Statutes chapter 349, and a licensee may lease a portion of the licensed premises for charitable gambling to any qualified organization that can obtain a charitable gambling license pursuant to State law. (Ord., 1989) 4-3-8 EXPENDITURE OF PROFIT: Any organization license by the State to conduct lawful gambling Each charitable gambling licensee operating in the City shall contribute to the City ten percent (10%) of its net profits derived from lawful gambling operations within the City to a fund administered by the City. For the purpose of this section, the term “net profits” means profits less amounts expended for allowable expenses. All sums received into the fund shall be distributed by the City for a “lawful purpose” as defined in Minnesota Statute ch. 349. defined herein to mean gross profits less amounts expended for allowable expenses and paid in taxes assessed on lawful gambling, all as defined in Minnesota Statutes chapter 349, derived from lawful gambling conducted at premises within the City's jurisdiction. All such contributions shall be deposited in a fund administered by the City and shall be used exclusively for: 1) charitable contributions as defined in Minnesota Statutes section 349.12, subdivision 7a, or 2) City police, fire, and other emergency or public safety-related services, equipment, and training. Such contribution shall be made no later than seventy five (75) days after the end of the licensee's tax fiscal year. (Ord. 2018-10, 8-6-2018) 4-3-9 RESPONSIBLE PARTIES: The gambling manager of a licensed organization shall be exclusively responsible for the timely filing of all reports and other documents required by this section. 4-3-9 MISDEMEANOR VIOLATION; PENALTIES: Every person who violates any provisions of this section when such person performs an act thereby prohibited or declared unlawful, or fails to act when such failure is thereby prohibited or declared unlawful, and upon conviction thereof, shall be punished as for a misdemeanor, except as otherwise stated in specific provisions hereof or, upon conviction thereof, shall be punished as provided in section 1-4-1 of this Code. Violation shall also be grounds for revoking or nonrenewal of a license. (Ord., 1989; amd. 2005 Code) Agenda Page 21 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA ORDINANCE NO. 2023-10 AN ORDINANCE AMENDING TITLE 4, CHAPTER 3 OF THE ALBERTVILLE CITY CODE RELATED TO GAMBLING WITHIN THE CITY OF ALBERTVILLE The City Council of the City of Albertville, Minnesota hereby ordains: Section 1. Title 4, Chapter 3 of the Albertville City Code is hereby amended to read as follows: CHAPTER 3 LAWFUL GAMBLING Sections: 4-3-1 Purpose 4-3-2 State Regulations Adopted; City May Be More Restrictive 4-3-3 Definitions 4-3-4 Prohibitions 4-3-5 Application Of Provisions; Exemptions 4-3-6 Number Of Licenses And Permits: 4-3-7 Eligible Licensees: 4-3-8 Expenditure Of Profit: 4-3-9 Responsible Parties: 4-3-10 Misdemeanor Violation; Penalties 4-3-1 PURPOSE: The purpose of this section is to closely regulate lawful gambling within the City, to prevent its commercialization, to ensure the integrity of operations, and to provide for the use of net profits only for lawful purposes. 4-3-2 STATE REGULATIONS ADOPTED; CITY MAY BE MORE RESTRICTIVE: The provisions of Minnesota Statute ch. 349, as amended from time to time, with reference to the definition of terms, conditions of operation, provisions relating to sales, and all other matters pertaining to lawful gambling are hereby adopted by reference and are made a part of this ordinance as if set out in full. It is the intention of the Council that all future amendments of Minn. Stat. ch. 349, are hereby adopted by reference or referenced as if they had been in existence at the time this ordinance was adopted. The City Council is authorized by the provision of Minnesota Statute section 349.213 to impose, and has imposed in the section, additional restrictions on gambling within its limits beyond those contained in Minnesota Statute ch. 349. 4-3-3 DEFINITIONS: For the purpose of this section the terms used herein shall have the meanings defined or as used in Minnesota Statue ch. 349. Agenda Page 22 City of Albertville Ordinance No. 2023-10 Meeting of August 7, 2023 Page 2 4-3-4 PROHIBITIONS: There shall be no gambling in the City except in accordance with the provisions of this section and the provisions of Minnesota Statutes ch. 349 and rules adopted pursuant thereto. No organization may conduct lawful gambling in the City unless such organization is in full compliance with the licensing and permitting requirements of Minnesota Statute ch. 349. 4-3-5 APPLICATION OF PROVISIONS; EXEMPTIONS: This section shall be construed to regulate all forms of lawful gambling within the City except the following as provided for by Minnesota Statutes allowed by Minnesota Statutes 349.166, subd.2: A. Bingo, if it is conducted: 1. By an organization in connection with a county fair, the state fair, or a civic celebration and is not conducted for more than 12 consecutive days and is limited to no more than four separate application for activities applied for and approved in a calendar year; or 2. By an organization that conducts bingo on four or fewer days in a calendar year. An organization that holds a license to conduct lawful gambling under this chapter may not conduct bingo under this subdivision. B. Bingo may be conducted within a nursing home or a senior citizen housing project or by a senior citizen organization if the prizes for a single bingo game do not exceed ten dollars ($10), total prizes awarded at a single bingo occasion do not exceed two hundred dollars ($200), only members of the organization or residents and their guests of the nursing home or housing project are allowed to play in a bingo game, no compensation is paid for any persons who conduct the bingo, and a manager is appointed to supervise the bingo. C. Raffles may be conducted by an organization if the value of all raffle prizes awarded by the organization in a calendar year does not exceed one thousand five hundred dollars ($1,500) or, if the organization is a 501(c)(3) organization, if the value of all raffle prizes awarded by the organization at one event in a calendar year does not exceed five thousand dollars ($5,000). D. The City Clerk is authorized to approve lawful gambling as exempt from the requirements for a City license under this section: 1. An organization that conducts lawful gambling on five (5) or fewer days in a calendar year. 2. An organization that does not award more than fifty thousand dollars ($50,000) in prizes for lawful gambling in a calendar year. 4-3-6 NUMBER OF LICENSES AND PERMITS: A. No organization licensed pursuant to Minnesota Statutes ch. 349 may conduct lawful gambling at more than four (4) locations within the City. B. No more than one (1) premises permit will be approved for the conduct of lawful gambling on any single premises. Agenda Page 23 City of Albertville Ordinance No. 2023-10 Meeting of August 7, 2023 Page 3 4-3-7 ELIGIBLE LICENSEES: Only nonprofit organizations located within the City of Albertville which have operated for at least three (3) years within the City, have at least fifteen (15) active members, have a license to conduct lawful gambling from the State Gambling Board, and comply with Minnesota statutes chapter 349 and this section, shall be permitted to conduct charitable gambling within the City. In the event that no local nonprofit organization chooses to operate an eligible lawful gambling site, the City Council may license a nonlocal, nonprofit organization which complies with all applicable state and local regulations. 4-3-8 EXPENDITURE OF PROFIT: Any organization license by the State to conduct lawful gambling shall contribute to the City ten percent (10%) of its net profits derived from lawful gambling operations within the City to a fund administered by the City. For the purpose of this section, the term “net profits” means profits less amounts expended for allowable expenses. All sums received into the fund shall be distributed by the City for a “lawful purpose” as defined in Minnesota Statute ch. 349. Such contribution shall be made no later than seventy five (75) days after the end of the licensee's tax fiscal year. 4-3-9 RESPONSIBLE PARTIES: The gambling manager of a licensed organization shall be exclusively responsible for the timely filing of all reports and other documents required by this section. 4-3-10 MISDEMEANOR VIOLATION; PENALTIES: Every person who violates any provisions of this section when such person performs an act thereby prohibited or declared unlawful, or fails to act when such failure is thereby prohibited or declared unlawful, and upon conviction thereof, shall be punished as for a misdemeanor, except as otherwise stated in specific provisions hereof or, upon conviction thereof, shall be punished as provided in section 1-4-1 of this Code. Violation shall also be grounds for revoking or nonrenewal of a license. Section 2. This ordinance shall be effective upon its passage and publication according to law. Adopted by the City Council of the City of Albertville this 7th day of August 2023. _____________________________ Jillian Hendrickson, Mayor ATTEST: _________________________ Kristine A. Luedke, City Clerk Agenda Page 24 CITY OF ALBERTVILLE WRIGHT COUNTY STATE OF MINNESOTA SUMMARY OF ORDINANCE NO. 2023-10 AN ORDINANCE AMENDING TITLE 4, CHAPTER 3 OF THE ALBERTVILLE CITY CODE RELATED TO GAMBLING WITHIN THE CITY OF ALBERTVILLE The City Council of the City of Albertville hereby ordains that on the 7th day of August, 2023, the above referenced Ordinance was adopted. Due to the lengthy content of the Ordinance, a brief summary follows: Section 1 4-3-1 4-3-2 4-3-3 4-3-4 4-3-5 4-3-6 4-3-7 4-3-8 4-3-9 4-3-10 Amendment. Amendment of Title 4, Chapter 3, of the Albertville City Code. Purpose. Identifies the purpose of the Ordinance State Regulations Adopted; City May Be More Restrictive. Adopts the State regulations. Definitions. Identifies the consequences for violation of this Ordinance. Prohibitions. Identifies prohibited activities Application of Provisions; Exemptions. Identifies exemptions Number of Licenses and Permits. Identifies number of licenses allowed. Eligible Licensees. Identifies which organizations are eligible for a license Expenditure of Profit. Identifies expenditure of profits Responsible Parties. Identifies responsible party Misdemeanor Violation; Penalties. Identifies the consequences for violation of this Ordinance. The above Ordinance shall take effect and be in full force immediately following its adoption and upon publication. A copy of the Ordinance can be viewed by contacting the City Clerk during business hours or on the City’s website. /s/ Jillian Hendrickson, Mayor ATTEST: /s/ Kris Luedke, City Clerk Publish Date: August 17, 2023 Agenda Page 25 Mayor and Council Request for Action August 7, 2023 SUBJECT: LEGAL – CANNABIS PROHIBITION IN PUBLIC PLACES RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Adopt Ordinance No. 2023-11 establishing Title 6, Chapter 7, of the Albertville City Code “Prohibiting the Public Use of Hemp and Cannabis Products” and approve summary Ordinance for publication. BACKGROUND: In the 2023 Legislative session the Legislature passed and the Governor signed into law a bill legalizing the cultivation, manufacturing, sale and consumption of cannabis (marijuana). While the law makes the use of cannabis legal in the State, it is believed that cities still possess the ability to prohibit the public consumption of cannabis in the same way that cities can prohibit the public consumption of alcohol. The attached ordinance prohibits the use of cannabis products in public places, which includes streets, parks, trails, publicly owned buildings and parking lots, public vehicles and private properties that are open to use by the public (such as the parking lot of a retail business). This ordinance will not prohibit people from consuming cannabis in their house or back yards. KEY ISSUES: •This ordinance prohibits the use of cannabis products in public places, which includes streets, parks, trails, publicly owned buildings and parking lots, public vehicles and private properties that are open to use by the public (such as the parking lot of a retail business). •This ordinance will not prohibit people from consuming cannabis in their house or back yards. •Violation is a petty misdemeanor punishable by a fine of $100. By specifying a $100 fine City Staff is hoping that this will be treated like a traffic ticket that most people who are cited will simply pay the fine without the need for the City to devote resources toward prosecution. •Citations would likely be issued by the Wright County Sheriff’s Office. POLICY/PRACTICES CONSIDERATIONS: The City has no prior regulatory experience with cannabis. One of the main policy reasons for enacting this ordinance would be to limit minors’ exposure to cannabis by requiring that it not be consumed in places frequented by minors (parks, sidewalks, trails, etc.). FINANCIAL CONSIDERATIONS: If any prosecutions of violations of this ordinance occur, the City will need to pay prosecution costs as the County Sheriff contract does not include prosecution of City ordinance violations. It is more likely that most fines will be paid in the same manner as a traffic ticket, which would not require prosecution expense. Agenda Page 26 Mayor and Council Request for Action – August 7, 2023 Legal – Cannabis Prohibition in Public Places Page 2 of 2 LEGAL CONSIDERATIONS: The City Attorney believes the City has the authority as part of its police power to adopt and enforce this ordinance. Responsible Person: Mike Couri, City Attorney Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: •Ordinance No. 2023-11 Prohibiting The Public Use Of Hemp And Cannabis Products •Summary of Ordinance No. 2023-11 Agenda Page 27 CITY OF ALBERTVILLE WRIGHT COUNTY STATE OF MINNESOTA ORDINANCE NO. 2023-11 AN ORDINANCE ESTABLISHING TITLE 6, CHAPTER 7, OF THE ALBERTVILLE CITY CODE PROHIBITING THE PUBLIC USE OF HEMP AND CANNABIS PRODUCTS The City Council of the City of Albertville, Minnesota hereby Ordains: Section 1. Establishment of Title 6, Chapter 7 of the Albertville City Code. Title 6, Chapter 7, Section 5, of the Albertville City Code is hereby established to state as follows: CHAPTER 7 PROHIBITING THE PUBLIC USE OF HEMP AND CANNABIS PRODUCTS Section: 6-7-1 Purpose and Intent 6-7-2 Definitions 6-7-3 Prohibited Activity 6-7-4 Penalty 6-7-5 Conflicts 6-7-1. PURPOSE AND INTENT. The purpose of this Section is to regulate the public use of hemp and cannabis products within the City of Albertville, to protect the public health, safety and welfare of its residents. 6-7-2. DEFINITIONS. The definitions in Minn. Stat. § 342.01 apply to this Section. In this Section: Cannabis Flower: The harvested flower, bud, leaves, and stems of a cannabis plant. Cannabis flower includes adult-use cannabis flower and medical cannabis flower. Cannabis flower does not include cannabis seed, hemp plant parts, or hemp-derived consumer products. Cannabis Product: Any of the following: (1) cannabis concentrate; (2) a product infused with cannabinoids, including but not limited to tetrahydrocannabinol, extracted or derived from cannabis plats or cannabis flower; or (3) any other product that contains cannabis concentrate. Cannabis product includes adult-use cannabis products, including but not limited to edible cannabis products and medical cannabinoid products. Lower-Potency Hemp Edible: Any product that (1) is intended to be eaten or consumed as a beverage by humans; (2) contains hemp concentrate or an artificially derived cannabinoid, in combination with food ingredients; (3) is not a drug; (4) consists of servings that contain no more than five milligrams of delta-9 tetrahydrocannabinol, 25 Agenda Page 28 City of Albertville Ordinance No. 2023-11 Meeting of August 7, 2023 Page 2 milligrams of cannabidiol, 25 milligrams of cannabigerol, or any combination of those cannabinoids that does not exceed the identified amounts; (5) does not contain more than a combined total of 0.5 milligrams of all other cannabinoids per serving; (6) does not contain an artificially derived cannabinoid other than delta-9 tetrahydrocannabinol; (7) does not contain a cannabinoid derived from cannabis plants or cannabis flower; and (8) is a type of product approved for sale by the Office of Cannabis Management or is substantially similar to a product approved by that Office, including but not limited to products that resemble nonalcoholic beverages, candy, and baked goods. Hemp-Derived Consumer Product: A product intended for human or animal consumption, does not contain cannabis flower or cannabis concentrate, and (1) contains or consists of hemp plant parts; or (2) contains hemp concentrate or artificially derived cannabinoids in combination with other ingredients. Public Place: Property within the City of Albertville that is owned, leased, or controlled by a governmental unit, including, but not limited to any public street, avenue, boulevard, right of way, road, alley, sidewalk, park, trail, parking lot, building, and vehicle, as well as private property that is regularly and frequently open to or made available for use by the public in sufficient numbers to give clear notice of the property's current dedication to public use. Provided, however, that the following shall not be considered Public Place: (1)a private residence including the person’s curtilage or yard; or (2)the premises of an establishment or event licensed to permit on-site consumption, unless such consumption occurs on public property. 6-7-3. PROHIBITED ACTIVITY. No person shall use cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products in a public place. 6-7-4. PENALTY. Violation of this Section shall be a petty misdemeanor punishable by a fine of not less than the amount set forth in City Code Section 3-1-3. 6-7-5. CONFLICTS: In the event of any conflict between the provisions of this Section and applicable provisions of State law, rules or regulations, the provisions of State law, rules or regulations shall prevail. Section 2. Amendment to City Code Section 3-1-3. Title 3, Chapter 1, Section 3, of the Albertville City Code is hereby amended to add the following fine: Section Subject Fee/Escrow/Penalty 6-7-4 Cannabis use $100 + costs of prosecution Section 3. Effective Date. This Ordinance shall be effective immediately upon its passage and publication. Agenda Page 29 City of Albertville Ordinance No. 2023-11 Meeting of August 7, 2023 Page 3 Approved by the City Council of the City of Albertville this 7th day of August, 2023. ____________________________________ Jillian Hendrickson, Mayor ATTEST: ____________________ Kristine A. Luedke, City Clerk Agenda Page 30 PUBLIC NOTICE CITY OF ALBERTVILLE WRIGHT COUNTY STATE OF MINNESOTA ADOPTION OF SUMMARY OF ORDINANCE NO. 2023-11 ORDINANCE ESTABLISHING TITLE 6, CHAPTER 7, OF THE ALBERTVILLE CITY CODE “PROHIBITING THE PUBLIC USE OF HEMP AND CANNABIS PRODUCTS” The City Council of the City of Albertville hereby ordains that on the 7th day of August, 2023, the above referenced Ordinance was adopted. Due to the lengthy content of the Ordinance, a brief summary follows: Section 1 Establishment. Establishment of Title 6, Chapter 7, of the Albertville City Code. 6-7-1 Purpose and Intent. Identifies the purpose and intent of the Ordinance. 6-7-2 Definitions. Clarifies language used in the Ordinance. 6-7-3 Prohibited Activity. Prohibits the public use of cannabis flower and products in public places. 6-7-4 Penalty. Identifies the consequences for violation of this Ordinance. 6-7-5 Conflicts. Provides for any conflict between the Ordinance and State law. Section 2 Amendment to Title 3, Chapter 1 to add a fine of $100 for violation of the Ordinance. Section 3 Effective date. Identifies the effective date of Ordinance. The above Ordinance shall take effect and be in full force immediately following its adoption and upon publication. A copy of the Ordinance can be viewed by contacting the City Clerk during business hours or on the City’s website. /s/ Jillian Hendrickson, Mayor ATTEST: /s/ Kris Luedke, City Clerk Publish Date: August 17, 2023 Agenda Page 31 Mayor and Council Request for Action August 7, 2023 SUBJECT: LEGAL – JOINT POWERS AGREEMENT WITH WRIGHT COUNTY FOR ENFORCEMENT OF CANNABIS RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Approve Joint Powers Agreement between the County of Wright and the City of Albertville for the enforcement and regulation of Cannabis. BACKGROUND: In the 2023 Legislative session, the Legislature passed and the Governor signed into law a bill legalizing the cultivation, manufacturing, sale and consumption of cannabis. The Wright County Attorney’s Office along with the Sheriff’s Office and the Public Health Division in the Health and Human Services Department has reviewed and discussed the implications of the recent cannabis bill within the County. The cannabis legislation was drafted in such a way that Wright County can only exercise enforcement over cannabis if the City of Albertville provides consent. Wright County has reached out to the local jurisdictions to see which cities and townships were interested in partnering with them by providing their consent. The County has provided the attached proposed Joint Powers Agreement (JPA) which would permit the County to enforce and regulate cannabis within the City of Albertville. With the JPA, the County would assume the full cost of enforcement and not seek any reimbursement from the City but in turn would keep any fees received from the licensed holders. Albertville would still retain any Local Cannabis Government Aid allocated to City. The City would also maintain control over any local zoning regulations under the authority of Minn. Chapter 462. Wright County anticipates this new area of regulation to look very similar to the County’s regulation of tobacco products. KEY ISSUES: •Wright County has provided a JPA which would permit the County to enforce and regulate cannabis within the City. •With the JPA, the County would assume the full cost of enforcement and maintain any fees received from the licensed holders. Albertville would still retain any Local Cannabis Government Aid allocated to City. •The City would maintain control over any local zoning regulations. •Wright County currently regulates the enforcement and licensing of tobacco products within Albertville. POLICY/PRACTICES CONSIDERATIONS: The is the City’s policy to evaluate and consider agreements on a case by case basis. Agenda Page 32 Mayor and Council Request for Action – August 7, 2023 Legal – Joint Powers Agreement with Wright County Page 2 of 2 FINANCIAL CONSIDERATIONS: With the JPA, the County will assume the cost of enforcement and will not seek any reimbursement from the City but in turn would keep any fees received from the licensed holders. The Albertville would still retain any Local Cannabis Government Aid allocated to City. LEGAL CONSIDERATIONS: The Mayor and the City Council have the authority to enter into a Joint Powers Agreement with Wright County for the enforcement and regulation of Cannabis. Responsible Person: Kris Luedke, City Clerk Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: •Joint Powers Agreement Agenda Page 33 JOINT POWERS AGREEMENT BETWEEN THE COUNTY OF WRIGHT AND THE CITY OF ALBERTVILLE FOR THE ENFORCEMENT AND REGULATION OF CANNABIS This agreement is made between the County of Wright and the City of Albertville for administration and regulation of cannabis as regulated under Minnesota Chapter 342 and the rules and regulations promulgated thereunder. This agreement is authorized by Minnesota Statutes § 342.22, subdivision 1 and Minn. Stat. § 471.59. The County of Wright and the City of Albertville agree that: 1. The County of Wright will act in place of the City of Albertville as the local government unit for the regulation and enforcement of cannabis under Minnesota Chapter 342 and any rules or regulations adopted under Minnesota Chapter 342 by the State of Minnesota or the Office of Cannabis Management. 2. The County of Wright is authorized to adopt, administer, and enforce within the jurisdictional limits of City of Albertville any ordinances, laws, regulations, or registration requirements concerning cannabis including, but not limited to, the adoption of a moratorium. 3. The County of Wright is authorized and has the consent of City of Albertville to register and enforce all registration requirements under Minnesota Statute §342.22. Any fees or penalties collected for registration and enforcement will remain entirely with the County of Wright. The parties will retain any Local Government Cannabis Aid allocated to them by the State of Minnesota. 4. The County of Wright will annually provide sufficient funding for the administration, enforcement and registration of the possession, sale and use of cannabis within the jurisdiction limits of City of Albertville. Source of funds shall be through State grant funds, County cannabis aid funds, general revenue funds and the collection of fees and penalties as established by the County of Wright. 5.The City of Albertville shall retain all authority granted to it under Minnesota Chapter 462. 6. Any ordinance adopted by the County of Wright with regards to cannabis shall be construed to supersede any local municipal regulation or ordinance to the extent the local municipal regulation is less restrictive. Where the conditions imposed by any ordinance provision are either more restrictive or less restrictive than comparable conditions imposed by any other law, Agenda Page 34 ordinance, statute, resolution or regulation of any kind, the regulations which are more restrictive, or which impose higher standards or requirements shall prevail. 7.The parties to this agreement will be subject to and follow the terms of the Minnesota Government Data Practice Act as provided under Minnesota Statutes Chapter 13 for all requests for access to data. The County of Wright shall maintain all records, accounts and reports for the regulation and registration of cannabis. 8. The County of Wright shall account for any funds and the County of Wright shall provide a report of all receipts and disbursements upon request. If any surplus property or funds are obtained through this joint powers agreement they shall be distributed to the County of Wright in the event this agreement is terminated. 9. Wright County shall be solely responsible for the compensation of its employees and elected members, including specifically but not exclusively worker’s compensation insurance and all taxes, while performing their duties under this agreement. The City of Albertville shall be solely responsible for the compensation of its employees and elected members, including specifically but not exclusively worker’s compensation insurance and all taxes, while performing their duties under this agreement. No employee of Wright County shall become an employee of City of Albertville, and no employee of City of Albertville shall become an employee of Wright County, by virtue of this agreement. 10.All responsibilities not specifically set out to be jointly exercised by the Parties under this Agreement are hereby reserved to the Parties individually. Nothing in this Agreement shall act as a waiver by a participating Party of its individual power and legal authority to provide services. 11. Indemnification and Hold Harmless: To the full extent permitted by law, actions by the Parties pursuant to this Agreement are intended to be and shall be construed as a “cooperative activity” and it is the intent of the Parties that they shall be deemed a “single governmental unit” for the purpose of liability, as set forth in Minnesota Statutes, Section 471.59, subd. 1a(a); provided further that for purposes of that statute, each Party to this Agreement expressly declines responsibility for the acts or omissions of the other Party. The Parties of this Agreement are not liable for the acts or omissions of the other participants to this Agreement except to the extent to which they have agreed in writing to be responsible for acts or omissions of the other Parties. Agenda Page 35 This agreement may be amended by mutual agreement of the County of Wright and the City of Albertville by resolutions of their respective boards. This agreement shall become effective upon signature of all duly authorized signatures, and shall remain in effect until terminated by agreement of the parties or thirty days after written notice of termination by either party. _________________________________________ __________________ County of Wright Date Board Chair _________________________________________ __________________ City of Albertville Date Mayor Agenda Page 36 Mayor and Council Request for Action August 7, 2023 SUBJECT: LEGAL - AN ORDINANCE REGULATING THC PRODUCTS RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Adopt Ordinance No. 2023-12 amending the Albertville City Code to Regulate Tetrahydrocannabinol Products and approve summary Ordinance for publication. BACKGROUND: In the 2022 Legislative session the Legislature passed and the Governor signed into law a bill legalizing manufacturing, sale and consumption of THC products (typically gummi edibles) with very few regulations by the state. On September 6, 2022, the Albertville City Council passed an interim ordinance prohibiting the manufacture or sale of THC products in the City. In the 2023 legislative session, the 2022 THC legislation was slightly modified, but not in a way that provided comprehensive regulation of the THC market, at least at this point. Per past City Council direction, City Staff has modified the previous version of the THC ordinance to incorporate the changes suggested by the Council when this issue was last before the Council as well as to incorporate some of the standards set in the 2023 cannabis legislation. This revised ordinance is before the Council now for final comment/changes or passage if there are no further changes to the ordinance. KEY ISSUES: •This ordinance requires anyone desiring to sell THC products in the City to first obtain a license to do so. •Only the following businesses are eligible for a THC license: o Vendors selling primarily tobacco or tobacco related products. o The license holder of an exclusive liquor store as defined in Minn. Stat. § 340A.101, subd. 10, provided the THC products are sold within the same premises licensed for liquor sales. o The license holder of an on-sale liquor establishment, provided the THC products are sold within the same premises licensed for liquor sales. o Vendors selling primarily CBD products or THC products. o Vendors selling primarily vitamins, health-related supplements, and skin care products. •This ordinance would not allow the sale of THC products at convenience stores or grocery stores, but would allow the sale at a store that sold primarily CBD or THC products, bars and liquor stores. •THC products would be allowed in all commercial zoning districts. •Sale cannot occur within 1,000 feet of a school or 500 feet of a licensed daycare (the same restrictions that can be imposed on Cannabis stores), on public property, or via a mobile vehicle/truck. Agenda Page 37 Mayor and Council Request for Action – August 7, 2023 Legal – Regulating THC Products Page 2 of 2 •State law prohibits sale of THC products to anyone under the age of 21. •If a license holder violates state law or the terms of the ordinance, the City may impose a fine of $500 plus a 1-day suspension for the first offense, $1,000 plus a 3-day suspension for the second offense within 36 months and a $1,000 fine and revocation of the license for a third offense within 36 months. •The license fee is set at $250. •Because compliance checks are not currently authorized under the law, there is no compliance check component to this ordinance. It is possible that the State will require compliance checks for THC vendors (and provide the authority to do so) when the State issues rules on compliance checks for cannabis retailers in 2025. •City staff does not believe that any zoning ordinance amendments will be required to implement this ordinance. POLICY/PRACTICES CONSIDERATIONS: The provisions of this ordinance are consistent with the direction given by the Council the last time this was discussed. However, because this issue came about as a result of a new state law, the City has no past policies or practices from which to draw guidance. FINANCIAL CONSIDERATIONS: The $250 application fee should roughly cover staff time to process the applications. However, this fee may need to be adjusted once the City has a chance to see how much time and effort are required to issue the licenses. LEGAL CONSIDERATIONS: It is likely that this ordinance will need to be modified in 2025 after the state agency that is in charge of cannabis regulations issues its regulations in 2025. At this point we do not know exactly what regulations will be imposed, but there has been speculation that some of these regulations may preempt City THC licensing ordinances or at least require changes to them. Responsible Person: Mike Couri, City Attorney Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: •Ordinance No. 2023-12 Regulating Tetrahydrocannabinol Products •Summary of Ordinance No. 2023-12 Agenda Page 38 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA ORDINANCE NO. 2023-12 AN ORDINANCE AMENDING THE ALBERTVILLE CITY CODE TO REGULATE TETRAHYDROCANNABINOL PRODUCTS The City Council of the City of Albertville hereby ordains as follows: Section 1. AMENDMENT OF ALBERTVILLE CITY CODE. The Albertville City Code is hereby amended to add Chapter 10 to Title 4 of the City Code, as follows: 4-10-1: PURPOSE AND INTENT. The purpose of this ordinance is to regulate the sale of any legalized adult-use product that contains tetrahydrocannabinol and that meets the requirements to be sold for human or animal consumption under Minn. Stat. §151.72, also known as “THC Products” for the following reasons: A.By enacting 2022 Session Law Chapter 98, Article 13, the Minnesota Legislature amended Minn. Stat. §151.72 to allow the sale of certain products containing tetrahydrocannabinol, also known as “THC”. B.The new law does not prohibit municipalities from adopting and enforcing local ordinances to regulate THC product businesses including, but not limited to, local zoning and land use requirements and business license requirements. C.The National Academies of Science, Engineering, and Medicine note that the growing acceptance, accessibility, and use of THC products, including for medical purposes, have raised important public health concerns, while the lack of aggregated knowledge of cannabis-related health effects has led to uncertainty about the impact of its use. D.The City recognizes the danger THC use presents to the health, welfare, and safety of youth in Albertville. E.The Minnesota Legislature recognized the danger of THC product use among the public at large by setting potency and serving size requirements. F.The Minnesota Legislature recognized the danger of THC product use among youth by prohibiting the sale of any product containing THC to those under the age of 21, requiring that edible THC products be packaged without appeal to children and in child- resistant packaging or containers. G.State law authorizes the Board of Pharmacy to adopt product and testing standards in part to curb the illegal sale and distribution of THC products and ensure the safety and compliance of commercially available THC products in the state of Minnesota H.The City has the opportunity to be proactive and make decisions that will mitigate this threat and reduce exposure of young people to the products or to the marketing of these products and improve compliance among THC product retailers with laws prohibiting the sale or marketing of THC products to youth. Agenda Page 39 City of Albertville Ordinance No. 2023-12 Meeting of August 7, 2023 Page 2 I. A local regulatory system for THC product retailers is appropriate to ensure that retailers comply with THC product laws and business standards of the City of Albertville to protect the health, safety, and welfare of our youth and most vulnerable residents. J. A requirement for a THC product retailer license will not unduly burden legitimate business activities of retailers who sell or distribute THC products to adults but will allow the City of Albertville to regulate the operation of lawful businesses to discourage violations of state and local THC Product-related laws. K. In making these findings and enacting this ordinance, it is the intent of the Albertville City Council to ensure responsible THC product retailing, allowing legal sale and access without promoting increases in use, and to discourage violations of THC Product-related laws, especially those which prohibit or discourage the marketing, sale, or distribution of THC products to youth under 21 years of age. 4-10-2: DEFINITIONS. Except as may otherwise be provided or clearly implied by context, all terms shall be given their commonly accepted definitions. The following words, terms, and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: A. EXCLUSIVE LIQUOR STORE. An establishment that meets the definition of exclusive liquor store in Minn. Stat. § 340A.101, subd. 10. B. STATE-LICENSED DAY CARE CENTER. A Nonresidential program as defined in Minn. Stat. § 245A.02, Subd. 10 for which a license is required under Minn. Stat. § 245A.03. C. LICENSED PRODUCT OR THC PRODUCT. Any product that contains more than trace amounts of tetrahydrocannabinol and that meets the requirements to be sold for human or animal consumption under Minn. Stat. §151.72, as may be amended from time to time. Licensed product does not include medical cannabis as defined in Minn. Stat. §152.22, Subd. 6, as may be amended from time to time, excluding “medical cannabis” as defined by Minn. Stat. §152.22, Subd. 6, as the same may be amended from time to time. D. MOVEABLE PLACE OF BUSINESS. Any form of business operated out of a kiosk, 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. E. SALE. Any transfer of goods for money, trade, barter, or other consideration. F. SCHOOL. Any public or private elementary, vocational, or secondary school, or a public or private college or university. G. SELF-SERVICE MERCHANDISING. Open displays of licensed products in any manner where any person has access to the licensed products without the assistance or intervention of the licensee or the licensee’s employee. Assistance or intervention means the actual physical exchange of the licensed product between the customer and the licensee or employee. H. THC. Is the acronym for tetrahydrocannabinol, the principal psychoactive constituent of cannabis. Agenda Page 40 City of Albertville Ordinance No. 2023-12 Meeting of August 7, 2023 Page 3 I. VENDING MACHINE. Any mechanical, electric, or electronic, or other type of device that dispenses licensed products upon the insertion of money, tokens, or other form of payment directly into the machine by the person seeking to purchase the licensed product. 4-10-3: LICENSE. A. License Required. No person shall sell or offer to sell any licensed product within the City without first having obtained a license to do so from the City. B. Application. An application for a license to sell licensed products shall be made on a form provided by the City. The application shall contain the full name and date of birth 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. A business applicant, at the time of application, shall furnish the City with a list of all persons that have an interest of five percent or more in the business. The list shall name all owners and show the interest held by each, either individually or beneficially for others. It is the duty of each business licensee to notify the City Administrator in writing of any change in ownership in the business. If the City Administrator determines that an application is incomplete, the City Administrator shall return the application to the applicant with notice of the information necessary to make the application complete. Upon receipt of a completed application, the City Administrator shall forward the application to the Director of Wright County Sheriff’s Office to conduct a criminal background check. Upon completion of the background check, the City Administrator shall forward the application to the City Council for action at its next regularly scheduled City Council meeting. C. Action. The City Council may either approve or deny the application for a 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 Administrator 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. Appeals of any decision must be made within thirty (30) days of the denial. If a license application is denied, the earliest an applicant may reapply is 12 months from the date the license is denied. D. Term. All licenses issued under this article shall expire on December 31 of each year. E. Revocation or Suspension. 1. Any license issued under this chapter may be revoked or suspended as provided in this chapter. 2. If a license is mistakenly issued or renewed to a person or a business, it shall be revoked upon the discovery that the person or business was ineligible for the license under this chapter and the City shall provide the person or business with a notice of revocation, along with information on the right to appeal. 3. Any change in the ownership or control of a licensed business shall be deemed equivalent to a transfer of the license, and any such license shall be revoked 30 days after any such change in ownership or control unless the licensee has notified the Council of the change in ownership by submitting a new license application for the Agenda Page 41 City of Albertville Ordinance No. 2023-12 Meeting of August 7, 2023 Page 4 new owners, and the City Council has approved the transfer of the license by appropriate action. Any time an additional investigation is required because of a change in ownership or control of a business, the licensee shall pay an additional investigation fee to be determined by the City. The City may at any reasonable time examine the transfer records and minute books of any business licensee to verify and identify the owners, and the City may examine the business records of any other licensee to the extent necessary to disclose the interest which persons other than the licensee have in the licensed business. The City Council may revoke any license issued upon its determination that a change of ownership of a licensee has resulted in the change of control of the licensed business so as materially to affect the integrity and character of its management and its operation, but no such action shall be taken until after a hearing by the City Council on notice to the licensee. F. Transfers. All licenses issued under this chapter shall be valid only on the premises for which the license was issued and only for the person or business to whom the license was issued. The transfer of any license to another location, business, or person is prohibited. G. Display. All licenses shall be posted and displayed in plain view of the general public on the licensed premises. H. Renewals. The renewal of a license issued under this article shall be handled in the same manner as the original application. The request for a renewal shall be made at least 30 days but no more than 60 days before the expiration of the current license. I. Issuance as Privilege and Not a Right. The issuance of a license issued under this article is a privilege and does not entitle the license holder to automatic renewal of the license. 4-10-4. ELIGIBILITY AND BASIS FOR DENIAL OF LICENSE. A. Eligibility. 1. Moveable Place of Business. No license shall be issued to a moveable place of business. Only fixed location businesses shall be eligible to be licensed under this article. 2. Eligible Businesses. Licenses shall only be issued to the following entities, provided after October 1, 2023, such entities are registered with the Commissioner as required by Minn. Stat. § 151.72, Subd. 5b: a. Vendors selling primarily tobacco or tobacco related products. b. The license holder of an exclusive liquor store as defined in Minn. Stat. § 340A.101, subd. 10, provided the THC products are sold within the same premises licensed for liquor sales. c. The license holder of an on-sale liquor establishment, provided the THC products are sold within the same premises licensed for liquor sales. d. Vendors selling primarily CBD products or THC products. e. Vendors selling primarily vitamins, health-related supplements, and skin care products. Agenda Page 42 City of Albertville Ordinance No. 2023-12 Meeting of August 7, 2023 Page 5 3. Proximity to Schools. No license shall be issued for a premises within 1,000 feet of any school. The distance is to be measured from the closest point of the property the school is located on to the closest side of the structure within which the licensed product is be sold. 4. Proximity to Day Care Facilities. No license shall be issued for a premises within 500 feet of a State licensed day care center. 5. Delinquent Taxes and Charges. No license shall be granted or renewed for operation on any premises on which taxes, assessments, utility charges, service charges, or other financial claims of the City are delinquent and unpaid. In the event an action has been commenced pursuant to the provisions of Minn. Stat. Ch. 278, as it may be amended from time to time, questioning the amount or validity of taxes, the City Council may, on application by the licensee, waive strict compliance with this paragraph. No waiver may be granted, however, for taxes or any portion thereof which remain unpaid for a period exceeding one year after becoming due. 6. Zoning Compliance. No license shall be granted or renewed for operation on any premise where the sale of THC Products would be in violation of the City’s Zoning Ordinance. 7. No entity shall be issued a license to sell THC Products on municipally-owned property. B. Grounds for Denial. Grounds for denying the issuance or renewal of a license under this chapter include, but are not limited to, the following: 1. The applicant is under the age of 21 years. 2. The applicant is prohibited by Federal, State, or other local law, ordinance, or other regulation from holding a license. 3. The applicant has been convicted within the past five years for any violation of a Federal, State, or local law, other ordinance, provision, or other regulation relating to the licensed products. 4. The applicant has had a license to sell licensed products suspended or revoked during the 12 months preceding the date of application, or the applicant has or had an interest in another premises authorized to sell licensed products, whether in the City or in another jurisdiction, that has had a license to sell licensed products suspended or revoked during the same time period, provided the applicant had an interest in the premises at the time of the revocation or suspension, or at the time of the violation that led to the revocation or suspension. 5. The applicant is a business that does not have an operating officer or manager who is eligible pursuant to the provisions of this chapter. 6. The applicant is the spouse of a person ineligible for a license pursuant to the provision of Section 4-10-4.B.2 or Section 4-10-4.B.3 of the Albertville City Code or who, in the judgment of the City Council, is not the real party in interest or beneficial owner of the business to be operated, under the license. Agenda Page 43 City of Albertville Ordinance No. 2023-12 Meeting of August 7, 2023 Page 6 7. The applicant fails to provide any information required on the application or provides false or misleading information. Any false statement on an application, or any willful omission of any information called for on such application form, shall cause an automatic refusal of license, or if already issued, shall render any license issued pursuant thereto void and of no effect to protect the applicant from prosecution for violation of this chapter, or any part thereof. 8. The application is for a location at which the issue of a license is prohibited under this Ordinance. 10-4-5. PROHIBITED ACTS. A. In general. 1. No person shall sell or offer to sell any licensed product: a. By means of any type of vending machine. b. By means of self-service merchandising. c. By any other means, to any other person, or in any other manner or form prohibited by state or other local law, ordinance provision, or other regulation. d. That is not in the original packaging with labeling in compliance with labeling requirements of Minn. Stat. §151.72, subd. 5, as may be amended from time to time. e. At an establishment that also possesses an on-sale liquor license. 2. No person shall sell or offer for sale a product containing THC that does not meet all the requirements of Minn. Stat. §151.72, subd. 3., as may be amended from time to time. B. Legal Age. No person shall sell any licensed product to any person under the age of 21. 1. Age Verification. Licensees shall verify by means of government issued photographic identification that the purchaser is at least 21 years of age. 2. Signage. Notice of the legal sales age and age verification requirement must be posted prominently and in plain view at all times at each location where licensed products are offered for sale. The required signage, which will be provided to the licensee by the City, must be posted in a manner that is clearly visible to anyone who is making a purchase or is considering making a purchase. C. Samples Prohibited. No person shall distribute samples of any licensed product free of charge or at a nominal cost. D. Use of False Identification. It shall be a violation of this chapter for any person to attempt to disguise their 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 person. E. Unlawful Purchases. It shall be unlawful for any person who is under the age of 21 years to purchase any licensed product. Agenda Page 44 City of Albertville Ordinance No. 2023-12 Meeting of August 7, 2023 Page 7 10-4-6. ADDITIONAL REQUIREMENTS. A. Storage. All licensed products 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. B. Training. If training classes are available for employees within a 25-mile radius relating to compliance with sales to customers, all employees of a licensed premises shall attend training within two weeks of beginning employment at the licensee’s establishment or the earliest available class if no training classes are offered within said two-week period. 10-4-7. RESPONSIBILITY. All licensees are responsible for the actions of their employees in regard to the sale, offer to sell, and furnishing of licensed products on the licensed premises. The sale, offer to sell, or furnishing of any licensed product by an employee shall be considered an act of the licensee. Nothing in this section shall be construed as prohibiting the City from also subjecting the employee to any civil penalties that the City deems to be appropriate under this ordinance, state or federal law, or other applicable law or regulation. 10-4-8. VIOLATIONS AND PENALTY. A. Criminal Penalty. A violation of this chapter shall be a misdemeanor. Nothing in this chapter prohibits the City from seeking prosecution as a misdemeanor for an alleged violation of this chapter. B. Administrative Penalty. If a licensee or an employee of a licensee is found to have violated this article, the licensee shall be charged an administrative penalty as follows: 1. First Violation. The City Council may impose a civil fine of $500.00 and/or suspend the license for not less than 1 day. 2. Second Violation Within 36 Months. The City Council may impose a civil fine of $1,000.00 and/or suspend the license for not less than 3 consecutive days. 3. Third Violation Within 36 Months. The City Council may impose a civil fine of $1,000.00 and/or revoke the license for at least one year. C. Administrative Penalty Procedures. No penalty shall take effect until the licensee has received notice (served personally or by mail) of the alleged violation and of the opportunity for a hearing before the City Council, and such notice must be in writing and must provide that a right to a hearing before the City Council must be requested within 10 business days of receipt of the notice or such right shall terminate. All fines shall be paid within 30 days of imposition via mailing or personal service of such written notice by the City. D. Revocation. In addition to any other penalty imposed under this chapter, any license issued under this section may be revoked by the City Council for a violation of any provision of this chapter if the licensee has been given a reasonable notice and an opportunity to be heard. E. Appeal. Any appeal of the decision of the City Council to impose a civil penalty must be made within thirty (30) days of the decision of the City Council. Agenda Page 45 City of Albertville Ordinance No. 2023-12 Meeting of August 7, 2023 Page 8 10-4-9. LICENSE FEE. No license shall be issued under this chapter until the appropriate license fee shall be paid in full. The fee for a license under this article may be amended from time to time by the City Council. The annual fee for a THC license shall be $250.00 per calendar year, payable at the time of submission of an application for a license. License fees for licenses issued for part of a year shall be prorated as a percentage of the year the license will be in effect. No portion of such license fees shall be refundable. Section 2. EFFECTIVE DATE. This Ordinance shall be in full force and effect beginning upon the publication of this ordinance as required by law. Adopted by the City Council of the City of Albertville this 7th day of August 2023. _____________________________ Jillian Hendrickson, Mayor ATTEST: _________________________ Kristine A. Luedke, City Clerk Agenda Page 46 PUBLIC NOTICE CITY OF ALBERTVILLE WRIGHT COUNTY STATE OF MINNESOTA ADOPTION OF SUMMARY OF ORDINANCE NO. 2023-12 AN ORDINANCE AMENDING THE ALBERTVILLE CITY CODE TO REGULATE TETRAHYDROCANNABINOL PRODUCTS The City Council of the City of Albertville hereby ordains that on the 7th day of August, 2023 the above referenced Ordinance was adopted. Due to the lengthy content of the Ordinance, a brief summary follows: The Ordinance establishes Title 4, Chapter 10 of the City Code and regulates the sale of products that contains tetrahydrocannabinol (THC). Any person selling THC within the City of Albertville must first obtain a license to sell THC from the City. The ordinance restricts the types of business that qualify for licenses, does not allow sales of THC within certain distances of schools and licensed day care establishments, imposes a fee for the license, sets eligibility standards for the license, provides for other requirements for the issuance of the license, and provides for suspension or revocation of a license as well as fines for violations of the ordinance. The above Ordinance shall take effect and be in full force immediately following its adoption and upon publication. A copy of the Ordinance can be viewed by contacting the City Clerk during business hours or on the City’s website. /s/ Jillian Hendrickson, Mayor ATTEST: /s/ Kris Luedke, City Clerk Published date: August 17, 2023 Agenda Page 47 City Administrator’s Update August 3, 2023 GENERAL ADMINISTRATION 2024 Preliminary Budget Workshops: The 2024 Budget Workshop #2 and #3 are scheduled for August 7 and August 21 (if needed) at 6:15 pm before the regularly scheduled City Council meetings. Law Enforcement Contract: Wright County has made several edits to the Law Enforcement contract since it was originally sent out. The hourly rate and the back pay have not changed. The County Boards was schedule to approve the revised contract at its 8/1 meeting. The County approved contract will be discussed at the budget workshop. St. Michael Daze & Knights Social: The St. Michael City Council has invited the Albertville Council and Staff to a social hour during the annual Daze and Knights celebration on Friday, August 11 at 5 pm in the beer tent located between the St. Michael City Hall and Allina Clinic. Watershed District: The County would like to explore the option of creating a watershed taxing district and have invited staff to attend a meeting on August 14 to discuss. I do not believe Albertville benefits from a separate watershed taxing district for many reasons and would like to briefly discuss this with Council at the meeting. Building Inspection Services: Eight (8) applications for the position were received and scored. Staff will be conducting interviews the week of August 14 and will provide a hiring recommendation to the Council at the 2nd meeting in August. Parks Committee Vacancy: The City received a resignation notice from Parks member, Larry Boller, effective June 27 so there will be an opening on the Parks Committee. Code/Zoning Enforcement: The code enforcement regrading illegal land use on Potter’s property located at the southwest corner of 60th Street NE and Mackenzie Avenue has been turned over to the City Attorney. Compost Facility: Otsego has agreed to pay 2/3 of the cost associated with the 2023 chipping and screening operations. The Otsego Administrator and I will be working on a more formal understanding of facility use and cost sharing for future years. This is a topic I will bring back to the Council for more discussion in the near future. ENGINEERING/PUBLIC WORKS 2023 Street Overlay: Paving is underway and all project streets should be paved by the end of next week. Agenda Page 48 City Administrator’s Update Page 2 of 2 August 3, 2023 CSAH 19 Median Landscaping: Public Works has been working hard to clean up a CSAH 19 medians north of I94. A number of plantings need to be replaced and will be funded with warranty money retained from the 2020 construction project. We will have plant and mulch quotes for Council to consider at the next meeting. WWTF Improvements: Sludge removal from the reedbeds is nearing completions and precast panels are scheduled for mid-August. The Contractor is working to have the building fully enclosed by winter. 50th Street Retaining Walls: We are working on a retaining wall design and will be getting quotes for the work. Lift Station Upgrades: Public Works is working on 4 lift station upgrades. Generally, upgrades are related to control panels and electrical components. Eligible expenses can be paid with ARPA funds otherwise are paid with enterprise capital reserves. I-94 Gap Project: The Gap project received $78 million from the 2024 Corridors of Commerce solicitation. I am not aware of the construction schedule but believe MnDOT is anticipating 2024 construction and currently has a consultant working on the final design. County Road 137: The County is going to continue to work on the concept presented at the last meeting and believes the project can be constructed in 2025. Agenda Page 49