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10-15-19 City Council Agenda REGULAR MEETING AGENDA 1. Call to Order A. Pledge of Allegiance Pages B. Roll Call 2. Additions and Corrections to Agenda 3. Consent Agenda Approval of Consent Agenda ‐ All items listed under this heading are considered to be routine by the City Council and will be enacted by one motion. There will be no discussion of these items unless a Council Member so requests in which event the item will be removed from the general order of business and considered in its normal sequence on the agenda. A. Approval of Minutes: 1. Council/Manager Meeting – September 10, 2019 3‐4 B. Approval of City Check Register 5 C. Minutes of Boards and Commissions: 1. Environmental Commission – August 26, 2019 6‐7 2. Open Space & Recreation Commission – July 22, 2019 8‐11 D. Waiver of Public Hearing and Certification of Special Assessments – 2019 Sanitary Sewer Repairs located in the Pavement Management Area 19‐56 12‐14 E. Waiver of Public Hearing and Certification of Special Assessments – 2019 Driveway Repairs located in the Pavement Management Area 19‐57 15‐17 F. Approve Tax Increment Pledge Agreement Winnetka and Medicine Lake Tax Increment District 18‐77 G. Accept Resignation from the Human Services Commission 78 H. Hennepin County Emergency Services Unit Multijurisdictional Tactical Response Team Cooperative Agreement 79‐83 4. Public Hearing 5. Old Business 6. New Business All Ordinances listed under this heading are eligible for public input. A. Second Consideration – Ordinance 670 ‐ Tobacco Licensing and Regulation 84‐111 B. Golden Valley 4d Affordable Housing Program 19‐58 112‐127 C. First Consideration – Ordinance 671 ‐ Gambling Ordinance Amendments 128‐131 D. First Consideration – Ordinance 672 ‐ Establishing 2020 Master Fee Schedule 132‐165 October 15, 2019 – Immediately following HRA meeting Council Chambers Golden Valley City Hall 7800 Golden Valley Road City of Golden Valley City Council Regular Meeting October 15, 2019 – 6:30 pm 2 6. New Business ‐ continued E. Review of Council Calendar F. Mayor and Council Communications 7. Adjournment REGULAR MEETING MINUTES The meeting began at 7:00 pm in the Council Conference Room. Present: Mayor Harris and Council Members; Rosenquist, Schmidgall, Clausen and Fonnest. Staff present: City Manager Cruikshank, City Attorney Cisneros, City Clerk Luedke, Physical Development Director Nevinski Finance Director Virnig and. 1. Tobacco Regulation Update City Attorney Cisneros provided a summary of the August 13 Council/Manager Meeting. She presented the draft proposal of the Tobacco Ordinance and reviewed the policy areas of focus. The Council discussed the use of liquid nicotine delivery devices, the requirement to sell liquid nicotine products in childproof packaging and the effects of setting a cap on the number of licenses issued to tobacco retailers. Council directed staff to update Sec. 16-168. - Violations and Penalty of the proposed ordinance, specifically segment (b) which references civil fine amounts and days of suspension for a licensee who violated the article. The Council will do the first reading of the draft ordinance at the Council Meeting on October 2. Glenwood Ave Bike Lane Plan and Parking Restrictions Physical Development Director Nevinski provided a summary of the Glenwood Avenue project scheduled for 2020. Emily Kettel and Robert Byers, Planner and Transportation Engineer for Hennepin County Public Works, presented the Hennepin County memorandum for the mill and overlay project including: background on the proposed changes, outreach and communication efforts by city and county staff and proposed recommendations for the project. The Council discussed the removal of parking in Glenwood, the recommendation to convert existing shoulder space into buffered bike lanes and signage along the corridor. Council also discussed revising the proposed resolution and considering a change order after the first stages of the project are completed. September 10, 2019 – 7:00 pm Council Conference Room Golden Valley City Hall 7800 Golden Valley Road City of Golden Valley City Council/Manager Regular Meeting Minutes August 13, 2019 – 6:30 pm 2 3. Proposed Budgets and Capital Improvement Program Finance Director Virnig presented the 2020-2021 Proposed Other Funds Budget, 2020-2029 Proposed Capital Improvement Program and 2020-2021 Proposed General Fund Budget/ Preliminary Levy Wrap Up. For the Other Funds Budget, Council discussed the material components on the new curling turf. For the Capital Improvement Plan, Council discussed flood mitigation and storm dredging. 4. Council Review of Future Draft Agendas: City Council: Tuesday, September 17. City Council: Wednesday, October 2 and Council/Manager: Thursday, October 10, 2019. No changes were submitted for future draft agendas. The meeting adjourned at 9:25 pm. Shepard M. Harris, Mayor ATTEST: Tomas Romano, Assistant to the City Manager’s Office Golden Valley City Council Meeting October 15, 2019 Agenda Item 3. B. Approval of City Check Register Prepared By Sue Virnig, Finance Director Summary Approval of the check register for various vendor claims against the City of Golden Valley. Financial Or Budget Considerations The check register has a general ledger code as to where the claim is charged. At the end of the register is a total amount paid by fund. Recommended Action Motion to authorize the payment of the bills as submitted. Supporting Documents Document is located on city website at the following location: http://weblink.ci.golden-valley.mn.us/Public/Browse.aspx?startid=717279&dbid=2 The check register for approval: o 10/04/2019 Check Register REGULAR MEETING MINUTES 1. Call to Order The meeting was called to order at 6:30 pm by Chair Seys. 2. Roll Call Commissioners present: Tracy Anderson, Tonia Galonska, Dawn Hill, Joseph Ramlet, Scott Seys, Jim Stremel and Debra Yahle Commissioners absent: Lynn Gitelis Staff present: Marc Nevinski, Physical Development Director; Eric Eckman, Development and Assets Supervisor; Drew Chirpich, Environmental Specialist and Claire Huisman, Administrative Assistant 3. Approval of Agenda MOTION by Commissioner Stremel, seconded by Commissioner Yahle to approve the agenda of August 26, 2019 as submitted and the motion carried. In discussion, Commissioner Hill requested that the red lined version of the EC Bylaws be made available to the Commission. 4. Approval of Minutes MOTION by Commissioner Hill, seconded by Commissioner Galonska to approve the minutes of July 22, 2019 as submitted with the following change: edit Chair Hill’s name under “Call to Order” to read Chair Seys and the motion carried. 6A. Discuss Model Waste Hauling Ordinance Marc Nevinski presented a draft solid waste and recyclables collection ordinance for the Commissions review. Comments included the following items: Under “Definitions” section – commercial establishment – clarify the meaning of “club” since it was listed as a separate entity from “restaurant”. Under “Disposal Regulations” section – (d) Burning or Burying prohibited: add verbiage to allow for burying materials for composting including pet waste. Under “Waste Hauling” section – (b) (1) vi regarding hauler’s market share: revise to indicate that the licensee has to show that they have at least 15% of the total active Residential accounts to renew by 2022. Under “Waste Hauling” section – (c) (1) (g): remove the word “fees” after the word “Cart”. Under “Waste Hauling” section – (e) (a) regarding hours of operation: revise to include holiday pick up days. Under “Waste Hauling” section – (f) vehicles: clarify whether residential or commercial hauling August 26, 2019 – 6:30 pm Council Conference Room Golden Valley City Hall 7800 Golden Valley Road City of Golden Valley Environmental Commission Regular Meeting Minutes August 26, 2019 – 6:30 pm 2 Under “Waste Hauling” section – (f) (7): change the word “fuel” to “energy”. Through the ordinance change “bi-weekly” to “every other week” for less confusion to the meaning. Check for duplication of requirements and information through the document. Will the City require commercial haulers to provide data as well as the residential? 6B. GreenStep Cities – Step 5 Transportation Modes and Miles 6.1 MOTION by Commissioner Ramlet, seconded by Commissioner Hill to approve the Performance Metrics entry for Step 5 – 6.1 Transportation Modes and Miles into the GreenStep Cities website at the time when all core topic areas and optional topic areas are completed and the motion carried. 6C. Potential Pollinator Habitat Eckman gave a brief presentation on the City’s proposal to allocate funding for increasing the amount of pollinator habitats in the City. The Commission was asked to help staff identify and evaluate properties that would be good candidates to be enhanced as a pollinator habitat. Certain areas along Hwy 55 were suggested but Eckman stated that areas along state highways would require an agreement with the state before proceeding with the project. It was advised to concentrate on properties that are not sellable and not transferrable. Another suggestion by the Commission was to consider enhancing the Boulevards so they would filter winter salt from Bassett Creek. Commissioners were asked to email any further ideas to City staff within the next few months. Staff will also provide the Commissioners with a Buffer Map of Golden Valley. 6D. Program/Projects Update The complete Program/Project Update is on file. One topic discussed regarded Xenia Apartments and their lack of progress on their building construction. 6C. Council Updates - None 6D. Other Business Commissioner Hill participated in the Bike/Walk Audit Tour of Golden Valley and found it to be very educational. Commissioner Ramlet stated that High School students from Minnetonka and Hopkins school districts are actively forming a group to help their cities create a plan towards becoming carbon neutral by 2030. 7. Adjournment MOTION by Commissioner Hill, seconded by Commissioner Anderson to adjourn the meeting at 8:10pm and the motion carried. ATTEST: Claire Huisman, Administrative Assistant 7800 Golden Valley Road I Golden Valley, MN 55427 City 0 763-512-2347 1 TTY 763-593-39681763-512-2344 (fax) I www.goidenvalleymn.gov goldenl..Ive Open Space of Recreation Commission July 22, 2019 — 5:30 pm Valley Room North Brookview Golden Valley 316 Brookview Parkway S REGULAR MEETING MINUTES 1. Call to Order The meeting was called to order at 5:50 pm by Mattison. 2. Roll Call Commissioners present: Roger Bergman, Cindy Carow-Schiebe, John Cornelius, Max Hyberger, Kimberly Sanberg, Bob Mattison, Matthew Sanders, Dawn Speltz, and Della Daml. Commissioners absent: Kelly Kuebelbeck Staff present: Rick Birno, Director of Parks and Recreation; Kirsten Santelices, Human Resources Director; Greg Simmons, Recreation and Facilities Supervisor; Mike Ward, Golf Maintenance Manager; Sheila Van Sloun, Administrative Assistant; Joannie Clausen, Council Member; Gillian Rosenquist, Council Member; Xeehnia Yang, Intern, and Taylor Vang, Intern. 3. Agenda changes or Additions None. 4. Approval of June 24, 2019 Minutes MOTION moved by Bergman and seconded by Sanders to approve the June 24, 2019 meeting minutes. Motion carried unanimously. S. Introduce Summer BrookLynk Interns Taylor Vang and Xeehnia Yang and Capstone Presentations Santelices introduced Interns Taylor Vang and Xeenhia Yang, who are working in Golden Valley for the summer. Vang worked in the Golf Maintenance Department assisting with general maintenance at Brookview Golf Course and Brookview Park. Yang worked in the Parks and Recreation Department assisting with Guest Services at Brookview. Interns provided information on their background and a recap of their experience with Golden Valley. Their presentation also included suggested improvements for the Brookview operation and the grounds. This document is available in alternate formats upon a 72-hour request. Please call 763-593-8006 (TTY: 763-593-3968) to make a request. Examples of alternate formats may include large print, electronic, Braille, audiocassette, etc. F City of Golden Valley Open Space & Recreation Commission Regular Meeting Minutes 2 July 22, 2019 — 5:30 pm 6. Park Dedication Funding Clarification/Review Birno gave a brief overview on how park dedication fees are generated and reviewed information provided by the Golden Valley Planning Department. He said the City receives a 6% fee, which is up from 2016 when the percentage was at 4%, when new development requires re -plating property in the City. The funds are then used for the development of new park areas and improvements at current parks and nature areas. He noted funds cannot be utilized for regular park maintenance. Mattison expressed concern that new apartment and condominium complexes that do not require re -plating are not subject to the fee and create new demand on the park system. Rosenquist suggested reaching out to the City Manager and others about the issue. 7. Winter Trail Lighting at Brookview Golf Course — Partnership with Three Rivers Park District Birno updated the Commission on a new partnership with Three Rivers Parks District. The partnership includes adding solar LED trail lights to the mile long Brookview multiuse winter recreation trail. The winter snow trail is used for cross-country skiing, skijoring, snowshoeing, fat bikes, and winter walking. The trail starts and ends on the patio at Brookview, and thus far has not had any lighting. This project is an experiment to test solar LED lighting on the recreation trail through a number of winters to see how the new lighting technology performs in the severe Minnesota winter weather conditions. Birno said both organizations are hopeful that lighting the trial is successful, as it could have a significant impact on substantially reducing lighting installation and operation costs throughout park areas and trails. New lights will be installed this fall and ready for use when the winter snow arrives. Birno also noted how much he appreciates the support from Three Rivers Park District with this project and all the joint ventures in Golden Valley. 8. Review Luce Line Trail Seasonal Issues East of Schaper Park Mattison expressed concerns regarding trail conditions and ski traffic on the trail east of Schaper Park during the winter months. Speltz mentioned the trail has been flooded for most of the summer season and therefore not available for summer use as well. Mattison then gave a brief overview of his concerns regarding the Luce Line Trail as it passes through Theodore Wirth Park. He agreed that there has been continued flooding during the spring, summer, and fall, and the winter trail access is not an option due to the winter cross- country ski trails added by the Loppet group. Birno then updated the Commission on some of the use parameters. Key information included Theodore Wirth Park is not operated by Golden Valley, Three Rivers Park District (TRPD) officially closes all regional bike trails once winter sets in, and signs them as use at your own risk. He also said the Minneapolis Park and Recreation Board MPRB) applies annually for permission from TRPD for the Loppet to add and groom ski trails on the regional bike trail. Speltz noted the flooding issues are being worked on by MPRB staff, however, at this point there has been little improvement. City of Golden Valley Open Space & Recreation Commission Regular Meeting Minutes 3 July 22, 2019 — 5:30 pm Commissioner Hyberger asked if TRPD routinely clears any of the trails during the winter season. Birno responded that as far as he knew they do not. Birno mentioned staff has been working with MNDOT on a trail connection from the Schaper Road intersection along the north side of Highway 55 to Theodore Wirth Parkway. This would provide a good alternative for year round bike commuters. He went on to say the bridge over the railroad on Highway 55 is scheduled for replacement in 2024, which would be the appropriate time to add the new trail connection. Mattison and Birno used an aerial photo to show the location for the potential connection. Mattison then noted this does not help the walkers who would like to access Theodore Wirth Park from the Luce Line during the winter season. He mentioned that the trail opening is at least 35' wide and could accommodate an opening for walkers in addition to the ski trails. Birno offered to organize an onsite trail meeting with representatives from Golden Valley, TRPD, MPRB, and the Loppet. Birno said the meeting can be scheduled for this fall season and hopefully develop some options that create access for all on the trail. Commissioners continued to discuss alternative options for winter trail use. Commission agreed they would like a meeting scheduled and information shared with TRPD staff. Mattison also mentioned that a request should be made, as part of the permit process for the Loppet to use the Luce Line, that snow on the trail should be removed from the Luce Line as soon as the snow operation concludes in the spring to expedite the opening of the trail. Birno said he would share information with TRPD. 9. Review and Discuss 10-year Brookview Building Capital Improvement Budget (CIP) Birno distributed the CIP for review. He processed through the budget areas noting this is an initial step in developing funds to keep the new Brookview functioning and looking great. Commission asked how the Brookview CIP was funded. Birno responded that at this point the goal is to use excess building revenues to fund the building CIP. Speltz asked if any of the Brookview building revenue goes to the general fund like Golf. Birno said it does not. 10. Commission and Staff Updates A. Commission Updates Mattison said GVGS cancelled Saturday tournament games due to rain and moved them all to Sunday with extended play at Lions, Wesley, and Schaper. Speltz asked about the algae issues at Rice Pond/Mary Hills. Birno said staff is working with representatives from Three River Park District and the Bassett Creek Watershed District to develop a plan on options for water quality improvement. A meeting will be scheduled in September which will include concerned residents. B. Brookivew 501h Anniversary Celebration Weekend Birno reminded the Commissioners that the 50th Anniversary celebrations will take place Friday, July 26-Sunday, July 28. Brookview Golf and Three One Six Bar + Grill will offer specials all weekend. City of Golden Halley Opera Space & Recreation Commission regular Meeti-g D 'inutes 4 July 22, 2019 — 5.30 om C. Field Improvement Projects Begin Birno said the project started late due to rain. It will include dugout and field improvements to Lions, Wesley, and Schaper Parks, as well as drainage and grading adjustments. He said it should be complete by the end of October. Sander$ suggested posting it on social media. Birno agreed and said postcards will also be malled to surrounding homes. D. Gearty Tennis Courts — Basketball Court Lines Birno said Gearty tennis courts have been resurfaced. He added that Lions, Scheid, and Wesley basketball courts received new lines, and that the Stockman Park basketball court and hoop system will be replaced this fall. E. Tennis Court Reports Birno said the court evaluations are complete for Medley Park and Scheid Park and he will bring them to the October meeting for commissioner review. F. Bike Lane Update Birno said the Council directed staff to make revisions to the plan that included the elimination of the proposed bike lanes on Sandburg Road and that parking will be allowed on both sides of Olympia Street. All other recommended bike lane improvements are moving forward. G. No August Meeting Rick reminded the Commissioners there is no meeting in August. H. September Meeting Rick reminded the Commissioners that the September meeting is the annual park tour and it will begin at 5 pm. Adjourn MOTION moved by Bergman and seconded by Cornelius to adjourn at 8:30 pm. 4 Bob Mattison, Chair t Sheila Van 5loun, Administrative Assistant Golden Valley City Council Meeting October 15, 2019 Agenda Item 3. D. Waiver of Public Hearing and Certification of Special Assessments - 2019 Sanitary Sewer Repairs Prepared By Sue Virnig, Finance Director Summary Agreements have been signed with the property owners regarding total costs and waiving the public hearing pursuant to Minnesota Statutes 429.031. By adopting the resolution it allows the property owner to pay for their sanitary sewer repair over time with their property taxes. This work was done by the contractor for the 2019 PMP and was billed at the time of completion of the project. Terms are the same as the 2019 Project. Financial Or Budget Considerations The total assessment role is for $11,540. This cost was planned at the time of financing the 2019 PMP project. Recommended Action Motion to adopt Resolution Waiving the Public Hearing Pursuant to Minnesota Statutes 429.031 and Ordering Certification of Special Assessments on Sanitary Sewer Repairs that Involve 2019 City Street Improvements. Supporting Documents List of Sanitary Sewer Repairs Assessed in 2019 for 2019 PMP (1 page) Resolution Waiving the Public Hearing Pursuant to Minnesota Statutes 429.031 and Ordering Certification of Special Assessments on Sanitary Sewer Repairs that Involve 2019 City Street Improvements (1 page) PID ADDRESS ASSESSMENT 30-118-21-20-0065 8925 MEDLEY LA 5,325.00 30-118-21-24-0027 2220 CAVELL AVE N 6,215.00 11,540.00 CITY OF GOLDEN VALLEY 2019 PMP PRIVATE SANITARY SEWER REPAIRS LEVY 20283 RESOLUTION No. 19-56 RESOLUTION WAIVING THE PUBLIC HEARING PURSUANT TO MINNESOTA STATUTES 429.031 AND ORDERING CERTIFICATION OF SPECIAL ASSESSMENTS ON PRIVATE SANITARY SEWER REPAIRS THAT INVOLVE 2019 CITY STREET IMPROVEMENTS Project Years Interest Rate First Year Levy Total Assessed 2019 PMP Sanitary Sewer Repairs 10 5% 2020 11,540.00 1. Each individual address (lots) will be assessed the full value of the signed contract with the homeowner for the various sanitary sewer repair(s). 2. The proposed assessments are hereby adopted and confirmed as the proper assessments for each of said property respectively together with interest at the rate of five 5) percent per annum accruing on the full amount thereof unpaid, shall be a lien concurrent with general taxes upon parcel and all thereof. The total amount of each such assessment not prepaid shall be payable in equal annual principal installments extending over a period of 10 years, as indicated in each case. 3. The first of said installments, together with interest on the entire assessment for the period of January 1, 2020 through December 31, 2020, will be payable with general taxes for the year of 2019, collectible in 2020, and one of each of the remaining installments, together with one year’s interest on that and all other unpaid installments, will be paid with general taxes for each consecutive year thereafter unless the entire assessment is paid in full by November 15, 2019. 4. The owner may pay off the assessment in full after November 15, 2019, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 15 or interest will be charged through December 31 of the succeeding year. 5. The City Clerk shall, as soon as may be, prepare and transmit to the County Auditor a certified duplicate of the assessment roll, with each installment and interest on each unpaid assessment set forth separately, to be extended upon the proper tax lists of the County and the County Auditor shall thereafter collect said assessment in the manner provided by law. Adopted by the City Council of Golden Valley, Minnesota on the 15th day of October, 2019. Shepard Harris, Mayor ATTEST: Kristine A. Luedke, City Clerk Golden Valley City Council Meeting October 15, 2019 Agenda Item 3. E. Waiver of Public Hearing and Certification of Special Assessments Prepared By Sue Virnig, Finance Director Summary Agreements have been signed with the property owners regarding total costs and waiving the public hearing pursuant to Minnesota Statutes 429.031. By adopting the resolution it allows the property owner to pay for their driveway improvement over time with their property taxes. This work was done by the contractor for the 2019 PMP and was billed at the time of completion of the project. Terms are the same as the 2019 Project. Financial Or Budget Considerations The total assessment role is for $51,747.63. This cost was planned at the time of financing the 2019 PMP project. Recommended Action Motion to adopt Resolution Waiving the Public Hearing Pursuant to Minnesota Statutes 429.031 and Ordering Certification of Special Assessments on Driveways that Involve 2019 City Street Improvements. Supporting Documents List of Driveways Assessed in 2019 for 2019 PMP (1 page) Resolution Waiving the Public Hearing Pursuant to Minnesota Statutes 429.031 and Ordering Certification of Special Assessments on Driveways that Involve 2019 City Street Improvements (1 page) PID ADDRESS ASSESSMENT 30-118-21-24-0037 2115 Decatur Ave N 3,171.63 30-118-21-24-0040 2125 Decatur Ave N 2,998.45 30-118-21-24-0005 2205 Decatur Ave N 3,802.39 30-118-21-24-0023 2210 Decatur Ave N 5,008.20 30-118-21-24-0026 2240 Cavell Ave N 2,272.93 30-118-21-21-0046 2315 Cavell Ave N 4,101.01 30-118-21-21-0056 2335 Decatur Ave N 2,757.89 30-118-21-24-0060 8815 Elgin Place 2,392.04 30-118-21-24-0059 8825 Elgin Place 9,163.49 30-118-21-24-0020 8860 Elgin Place 2,819.98 30-118-21-24-0036 8875 Elgin Place 6,477.10 30-118-21-24-0003 8905 23rd Ave N 4,019.52 30-118-21-21-0059 8930 23rd Ave N 2,763.00 TOTAL ASSESSMENT 51,747.63 City of Golden Valley 2019 PMP Driveways LEVY 20284 RESOLUTION No. 19-57 RESOLUTION WAIVING THE PUBLIC HEARING PURSUANT TO MINNESOTA STATUTES 429.031 AND ORDERING CERTIFICATION OF SPECIAL ASSESSMENTS ON PRIVATE DRIVEWAYS THAT INVOLVE 2019 CITY STREET IMPROVEMENTS Project Years Interest Rate First Year Levy Total Assessed 2019 PMP Driveways 10 5% 2020 51,747.63 1. Each individual address (lots) will be assessed the full value of the signed contract with the homeowner for the various private improvement(s). 2. The proposed assessments are hereby adopted and confirmed as the proper assessments for each of said property respectively together with interest at the rate of five 5) percent per annum accruing on the full amount thereof unpaid, shall be a lien concurrent with general taxes upon parcel and all thereof. The total amount of each such assessment not prepaid shall be payable in equal annual principal installments extending over a period of 10 years, as indicated in each case. 3. The first of said installments, together with interest on the entire assessment for the period of January 1, 2020 through December 31, 2020, will be payable with general taxes for the year of 2019, collectible in 2020, and one of each of the remaining installments, together with one year’s interest on that and all other unpaid installments, will be paid with general taxes for each consecutive year thereafter unless the entire assessment is paid in full by November 15, 2019. 4. The owner may pay off the assessment in full after November 15, 2019, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 15 or interest will be charged through December 31 of the succeeding year. 5. The City Clerk shall, as soon as may be, prepare and transmit to the County Auditor a certified duplicate of the assessment roll, with each installment and interest on each unpaid assessment set forth separately, to be extended upon the proper tax lists of the County and the County Auditor shall thereafter collect said assessment in the manner provided by law. Adopted by the City Council of Golden Valley, Minnesota on the 15th day of October, 2019. Shepard Harris, Mayor ATTEST: Kristine A. Luedke, City Clerk Golden Valley City Council Meeting October 15, 2019 Agenda Item 3. F. Approve Tax Increment Pledge Agreement for Winnetka and Medicine Lake Tax Increment District Prepared By Sue Virnig, Finance Director Summary The following Tax Increment Pledge Agreement should be approved in a written agreement to better clarify the procedure for the use of Winnetka and Medicine Lake Tax Increment. Financial Or Budget Considerations Not applicable Recommended Action Motion to approve Tax Increment Pledge Agreement. Supporting Documents Memo from Kennedy & Graven (15 pages) Tax Increment Pledge Agreement (44 pages) Kennedy Offices in Minneapolis Saint Paul St. Cloud 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis MN 55402 612) 337-9300 telephone 612) 337-9310 fax www.kennedy-graven.com Affirmative Action Equal Opportunity Employer Graven CHARTERED TO: Office of the State Auditor Attn: Jason Nord FROM: Jenny Boulton, Kennedy & Graven, Chartered DATE: July 1 9, 2019 RE: Inquiries Regarding Tax Increment Financing (Redevelopment) District (Liberty Crossing Project) The City of Golden Valley (the “City”) and the Housing and Redevelopment Authority of the City of Golden Valley (the “HRA”) received inquiries regarding the payment of the City’s 2,580,000 General Obligation Storm Sewer Revenue Bonds, Series 2016D (the “Bonds”) with tax increments from the HRA’s Tax Increment Financing (Redevelopment) District (Liberty Crossing Project) (the “TIF District”) within the Winnetka & Medicine Lake Road Redevelopment Project Area (the “Redevelopment Project Area”) and this memorandum is intended to respond to those inquiries. A. Introduction The City Council of the City has, on September 20, 2016, adopted a resolution (the “Bond Resolution”) awarding the sale of the City’s approximately $2,580,000 General Obligation Storm Sewer Revenue Bonds, Series 2016D (the “Bonds”) to finance the public redevelopment costs identified in the Tax Increment Financing Plan for the TIF District (the “TIF Plan”) adopted pursuant to Minnesota Statutes, Sections 469.174 to 469.1794 (the “TIF Act”), including without limitation, a portion of the cost of certain storm water flood containment and storage improvements necessary in connection with the Liberty Crossing multifamily housing development consisting of 55 townhome units and 187 market rate apartment units, constructed within the TIF District (the TIF Project”). The City Council of the City also, on December 15, 2015, and the Board of Commissioners of the HRA has on April 12, 2016, adopted resolutions (the “Initial Interfund Loan Resolutions”) authorizing an interfund loan in the amount of $1,000,000 to finance a portion of the cost of the TIF Project (the “Initial Interfund Loan”). And finally, the City Council, on October 13, 2016, and the Board of Commissioners of the HRA has on October 13, 2016, adopted resolutions the “Supplemental Interfund Loan Resolutions” and, together with the Initial Interfund Loan Resolutions, the “Interfund Loan Resolutions”) authorizing an interfund loan in the amount of 1,050,000 to finance a portion of the cost of the TIF Project (the “Supplemental Interfund Loan” and, together with the Initial Interfund Loan, the “Interfund Loans”). The Interfund Loan Resolutions state that the tax increments will be applied first to pay the Bonds and second to pay the Interfund Loans. All of the costs of the TIF Project financed by the Bonds and the Interfund Loans were paid not later than April 4, 2021 (which is the date five years after certification of the TIF District on April 4, 2016). Page 2 B. Law Under Minnesota Statutes, Section 469.178, subd. 2, the City is authorized to “issue general obligation bonds to finance any expenditure by the municipality or an authority the jurisdiction of which is wholly or partially within that municipality, pursuant to section 469.176, subdivision 4, in the same manner and subject only to the same conditions as those provided in chapter 475 for bonds financing improvement costs reimbursable from special assessments” (emphasis added). While the Bonds were issued under the authority of Minnesota Statutes, Chapters 475 and 444, they were issued “to finance any expenditure by the municipality or an authority the jurisdiction of which is wholly or partially within that municipality, pursuant to section 469.176, subdivision 4”. Furthermore, the recommendations prepared by the City’s municipal advisor, which are attached as Exhibit A (see Security and Source of Payment on page A-4 and the Coverage Ratio table on page A-7), and the Interfund Loan Resolutions clearly indicated the expectation of using tax increments to pay the debt service on the Bonds. The City has, in fact, been invoicing the HRA for tax increments from the TIF District to make the payments on the Bonds. However, the City and the HRA acknowledge a technical error in that Minnesota Statutes, Section 469.178, subd. 2, requires that the pledge of tax increment for the payment of the principal of and interest on general obligation bonds “shall be made by written agreement by and between the authority and the municipality and filed with the county auditor”, except when the authority and the municipality are the same. While the Interfund Loan Resolutions are a written agreement reciting the pledge to use the increments first to pay the Bonds and thereafter to pay the Interfund Loans, the Interfund Loan Resolutions were never filed with the County to evidence the pledge. Therefore, to clarify and improve the record regarding the pledge of tax increments to pay the Bonds, the City and HRA have determined to enter into a Tax Increment Pledge Agreement, a draft of which is enclosed with this memorandum, and to file it with Hennepin County. C. Conclusion Upon execution and filing of the Tax Increment Pledge Agreement with Hennepin County, the City and the HRA will have satisfied the requirements of Minnesota Statutes, Section 469.178, subd. 2 and any issues regarding the use of tax increments from the TIF District to pay the Bonds should be resolved. Please let us know if the Office of the State Auditor has any further questions. A-1 Exhibit A A-2 A-3 A-4 A-5 A-6 A-7 A-8 A-9 A-10 A-11 A-12 A-13 TAX INCREMENT PLEDGE AGREEMENT THIS AGREEMENT, effective as of the 19th day of October, 2016, by and between the City of Golden Valley, a Minnesota municipal corporation (the “City”), and the Housing and Redevelopment Authority of the City of Golden Valley, a public body corporate and politic created and existing under the provisions of Minnesota Statutes, Sections 469.090 to 469.1082 the “HRA”), witnesseth that: A. WHEREAS, the City and the HRA previously established the Winnetka & Medicine Lake Road Redevelopment Project Area (the “Redevelopment Project Area”), which is a “redevelopment project” under Minnesota Statutes, Sections 469.001 to 469.047 (the “HRA Act”); B. WHEREAS, within the Redevelopment Project Area, the City and HRA have established Tax Increment Financing (Redevelopment) District (Liberty Crossing Project) within the Redevelopment Project Area (the “TIF District”) and approved the Tax Increment Financing Plan for the TIF District (the “TIF Plan”), all pursuant to Minnesota Statutes, Sections 469.174 to 469.1794 (the “TIF Act”); C. WHEREAS, the City Council of the City has, on September 20, 2016, adopted a resolution which is attached as Exhibit A hereto (the “Bond Resolution”) awarding the sale of the City’s approximately $2,580,000 General Obligation Storm Sewer Revenue Bonds, Series 2016D (the “Bonds”) to finance the public redevelopment costs identified in the TIF Plan, including without limitation, a portion of the cost of certain storm water flood containment and storage improvements necessary in connection with the Liberty Crossing multifamily housing development consisting of 55 townhome units and 187 market rate apartment units, constructed within the TIF District (the “TIF Project”); D. WHEREAS, the City Council of the City has on December 15, 2015, and the Board of Commissioners of the HRA has on April 12, 2016, adopted resolutions which are attached as Exhibit B hereto (the “Initial Interfund Loan Resolutions”) authorizing an interfund loan in the amount of $1,000,000 to finance a portion of the cost of the TIF Project (the “Initial Interfund Loan”); E. WHEREAS, the City Council of the City has on October 13, 2016, and the Board of Commissioners of the HRA has on October 18, 2016, adopted resolutions which are attached as Exhibit C hereto (the “Supplemental Interfund Loan Resolutions” and, together with the Initial Interfund Loan Resolutions, the “Interfund Loan Resolutions”) authorizing an interfund loan in the amount of $1,050,000 to finance a portion of the cost of the TIF Project (the Supplemental Interfund Loan” and, together with the Initial Interfund Loan, the “Interfund Loans”); F. WHEREAS, all of the costs of the TIF Project financed by the Bonds and the Interfund Loans were paid not later than April 4, 2021 (which is the date five years after certification of the TIF District on April 4, 2016) and, in accordance with Section 469.1763, subd. 3(a)(4) of the TIF Act, this Agreement evidences the HRA’s intent to reimburse the City 2 for the payment of such costs, and interest thereon, from Available Tax Increments as provided herein; and G. WHEREAS, it is necessary and desirable that the City and the HRA enter into a tax increment pledge agreement to evidence the intent of the City and the HRA to apply a portion of the tax increments derived from the TIF District to pay the Bonds and the Interfund Loans. NOW, THEREFORE, the City and the HRA, each in consideration of the mutual covenants and agreements herein contained, covenant and agree as follows: 1. Pledge of Tax Increments; Coverage Test. The HRA pledges (i) first to the payment of the Bonds and (ii) thereafter to the payment of the Interfund Loans, the tax increments derived from the TIF District which are not otherwise pledged to other obligations of the TIF District in an amount equal to the debt service on the Bonds and the Interfund Loans collectively, the “Available Tax Increments”). 2. Remittance; Segregation; Reservation of Rights. All Tax Increments of the TIF District shall be remitted directly to the HRA and the HRA shall segregate such Tax Increments so received in a special account on its official books and records. The HRA shall promptly transfer Available Tax Increments to the City in the amounts required pursuant to Section 1 in accordance with a direction from the City’s Finance Director. The HRA reserves the right to alter the pledge of tax increments as set forth in the Interfund Loan Resolutions. The City’s Finance Director is authorized and directed to determine the exact source and amount of pledged revenues used to make each principal and interest payment, and to maintain accounts evidencing such transfers. 3. Filing; Computation and Collection. In accordance with Section 469.178, Subdivision 2 of the TIF Act, an executed copy of this Agreement will be filed with the Taxpayer Services Division Manager of Hennepin County. IN WITNESS WHEREOF, the City and the HRA have caused this Agreement to be duly executed on their behalf, and such signatures and seal to be attested, as of the day and year first above written. CITY OF GOLDEN VALLEY, MINNESOTA By_________________________________ Mayor By_________________________________ Manager 2 HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF GOLDEN VALLEY By_________________________________ Chair By_________________________________ Executive Director A-1 EXHIBIT A Bond Resolution A-2 A-3 A-4 A-5 A-6 A-7 A-8 A-9 A-10 A-11 A-12 A-13 A-14 A-15 A-16 A-17 A-18 A-19 A-20 A-21 A-22 A-23 A-24 A-25 B-1 EXHIBIT B Initial Interfund Loan Resolution B-2 B-3 B-4 B-5 B-6 C-1 EXHIBIT C Supplemental Interfund Loan Resolution C-2 C-3 C-4 C-5 RESOLUTION NO. 18-68 RESOLUTION AMENDING 16-61 APPROVING AN INTERFUND LOAN IN CONNE CTION WITH TAX INCREMENT FINANCING DISTRICT (REDEVELOPMENT), WINNETKA AVENUE & MEDICINE LAKE ROAD BE IT RESOLVED by the City Council of the City of Golden Valley, Minnesota (the "City"), as follows: 1.Recitals. (a)The Housing and Redevelopment Authority of the City of Golden Valley (the "HRA") and the City adopted the Redevelopment Plan for the Winnetka and Medicine Lake Road Project Area (the "Plan"), together with the Tax Increment Financing Plan (the "TIF Plan") for Tax Increment Financing District (Redevelopment), Winnetka Avenue North & Medicine Lake Road No. 1 (the "District"); all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.174 to 469.1794, all inclusive, as amended (the "Act"). (b)In accordance with the TIF Plan, the HRA has agreed to undertake a project with Liberty Crossing Investment Partners, LLC, a Minnesota limited liability company (the "Developer"), consisting of a five-story apartment building with approximately 187 apartments and approximately 55 townhomes, plus parking, landscaping, utilities and certain other improvements (the "Development"), all pursuant to a Private Development Agreement (the "Development Agreement") entered into with the Developer on April 29, 2016. {c) In support of the Development, the City is issuing its General Obligation Storm Sewer Revenue Bonds (the "Bonds") to finance storm water flood containment and storage improvements within the District. {d) In connection with the Development, the City authorized by written resolution dated December 15, 2015 an interfund loan of $1,000,000 to the HRA from the City's Storm Utility Fund, and the HRA approved the interfund loan by written resolution dated April 12, 2016 {the "Prior lnterfund Loan"). Pursuant to Section 3.7 of the Development Agreement, the HRA paid Developer $1,000,000 to accommodate the installation of a large underground storm water storage basin beneath the Development. (e)The HRA has approved on October 13, 2016 an additional interfund loan from the City to the HRA in the amount of $1,500,000 to pay qualified costs of private activity improvements relating to the Development (the "Current lnterfund Loan"). On October 16 , 2018 this amount was reduced to $1,050,000. (f)The Bonds will be a general obligation of the City, secured by its full faith and credit and taxing power. The City will also pledge net revenues of the storm sewer utility to the payment of principal and interest on the Bonds. The City expects to use tax increment revenues derived from the Development to first, repay the interfund loans and second, pay debt service on the Bonds. C-6 Resolution No. 18-68 -2- 2.Approval of the Current lnterfund Loan. (a)The City hereby authorizes the loan of up to $1,500,000 to the HRA from its Storm Utility Fund or other funds available or so much thereof as may be paid as qualified costs. The City shall be reimbursed such amount, together with interest at the rate stated below. Interest accrues on the principal amount from the date of each loan. The maximum rate of interest permitted to be charged is limited to the greater of therates specified under Minnesota Statutes, Section 270C.40 or Section 549.09, as of the date the loan is made, unless the written agreement states that the maximum interest rate will fluctuate as the interest rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09, are from time to time adjusted. The interest rate shall be 4% and will not fluctuate. (b)Principal and interest ("Payments") on the outstanding Current lnterfund Loan balance shall be paid semi-annually in two (2) equal installments per year, each installment to be paid within ten (10) business days of receipt by the City of property tax revenues from Hennepin County (the "Payment Dates"), commencing on the first Payment Date on which the City has Available Tax Increment (defined below}, or on any other dates determined by the City Finance Director, through the date of last receipt of tax increment from the HRA pursuant to the TIF Plan. (c)Payments on this Current lnterfund Loan are payable solely from "Available Tax Increment," which shall mean, on each Payment Date, tax increment available after other obligations, if any, have been paid for the preceding six (6) months with respect to the Development Property and remitted by Hennepin County, all in accordance with Minnesota Statutes, Sections 469.174 to 469.1794, as amended. Payments on this Current lnterfund Loan may be subordinated to any outstanding or future bonds, notes or contracts secured in whole or in part with Available Tax Increment, and are on parity with any other outstanding or future interfund loanssecured in whole or in part with Available Tax Increment. (d)The principal sum and all accrued interest payable under this Current lnterfund Loan are pre-payable in whole or in part at any time by the HRA without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under this Current lnterfund Loan. (e)This Current lnterfund Loan is evidence of a loan in accordance with Minnesota Statutes, Section 469.178, subdivision 7, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. Adopted by the City Council of Golden Valley, Minnesota this 16th day of October, 2018. ATTEST: ��14 Kristine A. Luedke, City Clerk C-7 HOUSING AND REDEVELO PMENT AUTHORITY RESOLUTION NO.18-05 RESOLUTION AMENDING 16-06 RESOLUTION RELATING TO THE LIBERTY CROSSING PROJECT OF THE CITY AND APPROVING THE DEVELO PMENT AGREEMENT AND INTERFUND LOAN THEREFORE BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority in and for the City of Golden Valley (the "HRA'), as follows: 1.Recitals. (a) The HRA and the City of Golden Valley, Minnesota (the °City") adopted the Redevelopment Plan for the Winnetka and Medicine Lake Road Project Area (the "Plan"}, together with the Tax Increment Financing Plan (the "TIF Plan") for Tax Increment Financing District (Redevelopment), Winnetka Avenue North & Medicine Lake Road No. 1 (the "District"); all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.17 4 to 469.1794, all inclusive, as amended (the "Act"). (b)In accordance with the TIF Plan, the HRA proposes to undertake a project with Liberty Crossing Investment Partners, LLC, a Minnesota limited liability company (the "Developer"), consisting of a five-story apartment building with approximately 187 apartments and approximately 55 townhomes, plus parking, landscaping, utilities and certain other improvements (the "Development"); (c)The Developer proposes that the HRA enter into a Private Development Agreement to construct the Development, attached hereto as Exhibit A (the "Development Agreement"). (d)In connection with the Development, the City has authorized the loan of up to $1,000,000 to the HRA from its Storm Utility Fund or other funds available or so much thereof as may be paid as qualified costs (the "lnterfund Loan'). (e} In connection with the Development, the City has authorized the loan of up to $1,500,000 to the HRA from Its Storm Utility Fund or other funds available or so much thereof as may be paid as qualified costs (the "lnterfund Loan"). With this amendment the amount of the loan on October 16, 2018 be approved for the amount of $1,050,000 due to the actual costs are lower than the estimated cost. 2.Approval of Development Agreement. The Development Agreement is hereby approved and the Chair and Director are hereby authorized to enter into the Development Agreement by and among the HRA and the Developer. 3.Approval of lnterfund Loan. (a)The HRA approves the lnterfund Loan. The City shall be reimbursed such amount, together with interest at the rate stated below. Interest accrues on the principal amount from the date of each loan. The maximum rate of Interest pennitted to be C-8 HRA Resolution No. 18-05 -2- charged Is limited to the greater of the rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09, as of the date the loan is made, unless the written agreement states that the maximum interest rate will fluctuate as the interest rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09, are from time to time adjusted. The interest rate shall be 4% and will not fluctuate. (b)Prindpal and interest rPayments") on the lnterfund Loan shall be paid semi annually in two (2) equal installments per year, each installment to be paid within ten (10) business days of receipt by the City of property tax revenues from Hennepin County (the "Payment Dates·), commencing on the first Payment Date on which the City has Available Tax Increment (defined below), or on any other dates determined by the City Finance Director, through the date of last receipt of tax increment from the HRA pursuant to the TIF Plan (the "maximum term"). (c)Payments on this lnterfund Loan are payable solely from "Available Tax Increment," which shall mean, on each Payment Date, tax increment available after other obligations have been paid for the preceding six (6) months with respect to the Development Property and remitted by Hennepin County, all In accordance with Minnesota Statutes, Sections 469.17 4 to 469.1799, as amended. Payments on the Jnterfund Loan may be subordinated to any outstanding or future bonds, notes or contracts secured in whole or in part with Available Tax Increment, and are on parity with any other outstanding or future interfund loans secured in whole or In part with Available Tax Increment. (d) The principal sum and all accrued interest payable under this lnterfund Loan are pre payable in whole or in part at any time by the HRA without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under this lnterfund loan. (e) This lnterfund Loan is evidence of a loan in accordance with Minnesota Statutes, Section 469.178, subdivision 7, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. ��Joanie Clausen, Chair C-9 Golden Valley City Council Meeting October 15, 2019 Agenda Item 3. G. Accept Resignation from Human Services Commission Prepared By Tim Cruikshank, City Manager Summary Commissioner Jason Kapel has submitted his resignation from the Human Services Commission. Financial Or Budget Considerations Not applicable Recommended Action Motion to accept the resignation of Jason Kapel from the Human Services Commission. gofdt:v'11 EXECUTIVE SUMMARY Police va ey 763-593-8079 / 763-593-8098 (fax) Agenda Item Golden Valley City Council Meeting October 15, 2019 3.H. Hennepin County Emergency Services Unit Multijurisdictional Tactical Response Team Cooperative Agreement Prepared By Jason J. Sturgis, Chief of Police David Kuhnly, Commander Summary This Joint Powers Agreement was created by the Golden Valley City attorney and Hennepin County Sheriff office attorney. This Joint Powers Agreement was written to allow the Hennepin County Sheriff's Office and the Police Department to partner in providing Emergency Services & tactical response. Services include mitigating hostile threat incidents, serve high-risk search warrants and respond to other approved high-risk incidents. Financial Or Budget Considerations $10,000 (already accounted for in existing personnel and training budgets) Recommended Action Motion to authorize the City Manager and Mayor to sign the Hennepin County Emergency Services Unit Multijurisdictional Tactical Response Team Cooperative Agreement Supporting Documents •Hennepin County Emergency Services Unit Multijurisdictional Tactical Response Team Cooperative Agreement (4 pages) 1 HENNEPIN COUNTY EMERGENCY SERVICES UNIT MULTIJURISDICTIONAL TACTICAL RESPONSE TEAM COOPERATIVE AGREEMENT This Agreement is between the COUNTY OF HENNEPIN, STATE OF MINNESOTA COUNTY”), on behalf of the Hennepin County Sheriff’s Office (the “Sheriff’s Office”) and the City of Golden Valley, on behalf of the Golden Valley Police Department. PURPOSE The purpose of this Hennepin County Emergency Services Unit Multijurisdictional Tactical Response Team Cooperative Agreement (“Agreement”) is to set forth the guidelines under which the Sherriff’s Office and the below referenced Law Enforcement Agencies (the “Agencies”) will operate when working collaboratively as the Multi- Jurisdictional Emergency Services Unit Tactical Response Team (the “ESU Team”). The intent of this agreement is to coordinate and maximize cooperation between the Agencies, the communities they represent, and the Hennepin County Sheriffs Office. MISSION The mission of the ESU Team is to respond to hostile threat incidents, serve high-risk search warrants and respond to other approved incidents within Hennepin County. The undersigned governmental units, in the co-operative and mutual exercise of their powers, agree as follows: I. ORGANIZATIONAL STRUCTURE A. Organizational Control. Responsibility for the overall policy and direction of the ESU Team shall rest with the Hennepin County Sheriff’s Office. The Sheriff of Hennepin County has directed the Captain of the Sheriff’s Enforcement Services Division to coordinate the policies, procedures and the activities of this team. B. Supervision. The overall supervision of the ESU Team shall be the responsibility of the Captain of the Hennepin County Sheriff’s Enforcement Services Division. The chain of command will be as follows: The ESU Team will have a command element to oversee the operations, planning and training of the ESU Team. The Sheriff’s Office command element will be responsible for incident decision making and will staff the command post for team call outs. ESU Team Leaders will report to the ESU Commander. The Team Leaders will be direct supervisors for Members’ officers at all team exercises and call outs. C. Members. Initially, and subject to Section VIII (below), the ESU Team is comprised of members from the following Agencies (collectively, the “Members” or Member Agencies”): i. Hennepin County Sheriff’s Office 2 ii. Golden Valley Police Department II. TEAM MOBILIZATION Each Member shall assign sworn peace officers to participate in the ESU Team (the Member Officers”). Member Officers shall have their cellphones programmed to be activated by the Hennepin County Sheriff’s Communication Division. In the event of an emergency requiring the services of the ESU Team, the Sheriff’s Office or its designee will authorize a callout for Member Officers using the Hennepin County Sheriff's Communications Division. The Communications Division shall activate the ESU Team, and direct the Member Officers to report. Members shall instruct their Member Officers to respond quickly while either off duty or on duty. Member Officers shall notify their respective Agencies of ESU Team activation/mobilization. III. PHYSICAL LOCATION The ESU Team shall be based out of the Sheriff’s Office Enforcement Services Division headquarters in Brooklyn Park. Unless the parties otherwise agree, ESU Team vehicles and equipment owned by the Sheriff’s Office shall be housed at Division headquarters in Brooklyn Park and all vehicles and equipment owned and contributed by the Agencies shall be housed at each Agency’s place of business. The Sheriff’s Office shall issue Member Officers electronic access cards to allow for limited entry into the Division headquarters. IV. TEAM EQUIPMENT The cost of equipment, training, operations and resources for each Member Agency officer assigned to the HCSO ESU team shall be the responsibility of that officer’s Agency. The Sheriff’s Office may use federal grants to purchase necessary equipment for the ESU Team and its Members to safely execute its mission. All equipment purchased using grant funds for the exclusive use of ESU Team remains the property of the Sheriff’s Office. Members shall be responsible for all the equipment issued to them and shall report any lost or damaged equipment to the Team Commanders as soon as possible. Upon withdrawal from the ESU Team, or termination of this Agreement, Members shall promptly return all issued equipment owned by the Sheriff’s Office to the Sherriff’s Office in good working condition. V. SALARIES AND COMPENSATION Each Member shall pay the salaries its own officers, including any overtime. The Sheriff’s Office may, in its sole discretion, elect to use existing grants or apply for Federal or State grants to pay for overtime or backfill costs for Member Officers to attend training or respond to incidents. 3 VI. LIABILITY A. Liability for Acts. Except as otherwise provided herein, each Member shall be responsible for its own acts and the acts of its officers and employees and any liability resulting therefrom to the extent authorized by law and no Member shall be responsible for the acts of any other Member or any liability resulting therefrom. Each Member acknowledges and agrees that it is insured or self-insured consistent with the limits established in Minnesota state statute. Each Member agrees to promptly notify all other Members if it becomes aware of any potential ESU Team related claims or facts that have or could give rise to such claims. B. Liability for Injuries or Death. Each Member shall be responsible for injuries to or death of its own personnel. Each Member shall maintain workers’ compensation insurance or self-insurance coverage, covering its own personnel while they are assigned to the ESU Team or are otherwise participating in or assisting with ESU Team operations or activities. Each Member waives the right to, and agrees that it will not, bring any claim or suit against the ESU Team or any other Member for any workers’ compensation benefits paid to its own employees, or their dependents, that arise out of participation in or assistance with ESU Team operations or activities, even if the injuries were caused wholly or partially by the negligence of any other Member or its officers, employees, or volunteers. C. Liability for Damage to Equipment. Each Member shall be responsible for damages to or loss of its own equipment. Each Member waives the right to, and agrees that it will not, bring any claim or suit against the ESU Team or any other Member for damages to or loss of its equipment arising out of participation in or assistance with ESU Team operations or activities, even if the damages or losses were caused wholly or partially by the negligence of any other Members or its officers, employees, or volunteers. D. Limitation of Liability. As applicable, under no circumstances shall a party be required to pay any amounts in excess of the limits on liability established in Minnesota Statutes Chapter 466 applicable to any one party. The statutory limits of liability for some or all of the parties may not be added together or stacked to increase the maximum amount of liability for any party. VII. TERM The term of this Agreement shall be for ___ years, commencing on October ___, 2019 and terminating on _______________, unless terminated earlier pursuant to the provisions of this Agreement. This Agreement may be extended by mutual written agreement of all of the Members for one successive ____ year term upon the same terms, conditions, and covenants, unless the ESU Team is dissolved prior to expiration of the initial or successive term. 4 VIII. ADDITIONAL MEMBERS AND CHANGE IN MEMBERSHIP A governmental unit may join the ESU Team and become a Member upon approval by all of the Members and execution of this Agreement. The Members may involuntarily terminate a Member for any reason upon an affirmative vote of a majority of the then existing Members. The parties acknowledge and agree that the Hennepin County Sheriff, or his/her designee, is authorized on behalf of COUNTY to approve/deny potential new governmental units and to vote to terminate existing Members pursuant to the foregoing. A Member may, upon 60 days’ written notice to all other Members, withdraw and cancel its participation in the ESU Team with or without cause. IN WITNESS WHEREOF, the undersigned governmental units caused this Agreement to be executed. HENNEPIN COUNTY CITY OF GOLDEN VALLEY By: _______________________________ Its: _______________________________ Date: _____________________________ By: Shepard M. Harris, Mayor Date: _____________________________ By: Timothy J. Cruikshank, City Manager Date: _____________________________ Golden Valley City Council Meeting October 15, 2019 Agenda Item 6. A. Second Consideration of Tobacco Licensing and Regulation Ordinance Prepared By Maria Cisneros, City Attorney Kris Luedke, City Clerk Summary The City of Golden Valley has the authority to license the sale of tobacco and related products in the City. As part of the 2019 goal setting process, the City Council directed staff to study the issue of tobacco sales regulation and present options for amending the tobacco licensing ordinance. (See City Code, Art. VI.) Staff has spent the last several months studying tobacco sales regulation, discussing the topic with the City’s Public Health Department (Hennepin County Public Health), engaging local tobacco retailers, and gathering input from residents and other community members. Through this public input process, the City received extensive input from the community, which is summarized in a Community Input Report prepared by the Communications Department. The Community Input Report, Council/Manager meeting agendas and survey results are all available on the City’s website (click here). At the August 13 and September 10 Council/Manager meetings, the Council reviewed the community input and directed staff to draft a proposed ordinance incorporating the following new policies: Updating the definitions to encompass new technologies, nicotine products, and tobacco and nicotine delivery devices Prohibiting the sale of flavored tobacco, including menthol, at all retailers Prohibiting the sale of tobacco at pharmacies Prohibiting the sale of tobacco to people under 21 and requiring retailers to post signs stating the legal age requirements Capping the amount of tobacco licenses issued by the City at 8 Increasing the minimum price for certain tobacco products from $2.00 to $3.00 Prohibiting free samples Requiring liquid nicotine products to be sold in child proof packaging Allowing additional compliance checks to ensure compliance with the new legal age requirements Updating the licensing requirements, grounds for denial and penalties for violation to more City Council Regular Meeting Executive Summary City of Golden Valley October 15, 2019 2 closely match similar requirements in other licensing sections of City Code Updating the license application and background check processes to more closely match similar requirements in other licensing sections of City Code The first consideration was presented at the October 2, 2019, City Council meeting. (click here) If the Council adopts the ordinance on second consideration, the new ordinance would be effective after publication on January 1, 2020. Current license holders would not be affected until the next licensing cycle. If the second consideration is adopted, staff recommends the Council approve the attached summary publication of the ordinance. To approve summary publication the Council must determine that publication of the title and a summary of the ordinance would clearly inform the public of the intent and effect of the ordinance. Financial or Budget Considerations The new regulations in the ordinance will increase the cost of enforcing tobacco sales regulations in the City. Specifically, the Police Department will conduct additional compliance checks to ensure tobacco is not sold to people between 18 and 20 and to ensure no prohibited products (such as flavored tobacco) are offered for sale. Staff recommends increasing the license fee from $275 to $450 to cover these increased enforcement costs. This increase will be reflected in the proposed 2020 fee schedule, which is scheduled for consideration at the October 15 and November 6 Council Meetings. Recommended Action Motion to adopt second consideration Ordinance #670, Repealing in its Entirety Article VI. Tobacco and Adding a New Article VI. Tobacco Licensing and Regulation. Motion to approve Summary of Ordinance #670 for Publication based on the finding that the title and summary clearly inform the public of the intent and elect of the ordinance. Supporting Documents Comparison of Current Tobacco Licensing Ordinance and Proposed Tobacco Licensing Ordinance 15 pages) Ordinance #670, Repealing in its Entirety Article VI. Tobacco and Adding a New Article VI. Tobacco Licensing and Regulation (11 pages) Summary of Ordinance #670 (1 page) Comparison of Current Tobacco Ordinance and Proposed Tobacco Ordinance ARTICLE VI. - TOBACCO Sec. 16-157. - Purpose and Intent. Because the City recognizes that many persons under the age of 18 years purchase or otherwise obtain, possess and use tobacco, tobacco productsthe sale of commercial tobacco, tobacco-related devices, electronic delivery devices, and nicotine or lobelia delivery devices, and the sales, possession, and use are violations of or lobelia delivery products to persons under the age of 18 violates both Statestate and Federalfederal laws; and because studies, which the City hereby accepts and adopts, have shown that mostyouth use of any commercial tobacco product has increased to 26.4% in Minnesota; and because nearly 90% of smokers begin smoking before they have reached the age of 18 years, and that those persons who reachalmost no one starts smoking after age 25; and because marketing analysis, public health research, and commercial tobacco industry documents reveal that tobacco companies have used menthol, mint, fruit, candy, and alcohol flavors as a way to target youth and young adults and that the agepresence of 18 years without having started smoking are significantly less likely to begin smokingsuch flavors can make it more difficult to quit; and because studies show that youth and young adults are especially susceptible to commercial tobacco product availability, advertising, and price promotions at tobacco retail environments; and because smokingcommercial tobacco use has been shown to be the cause of severalmany serious health problems which subsequently place a financial burden on all levels of government;, this article shall beordinance is intended to regulate the sale, possession and use of commercial tobacco, tobacco products, tobacco-related devices, electronic delivery devices, and nicotine or lobelia delivery devicesproducts for the purpose of enforcing and furthering existing laws, to protect minorsyouth and young adults against the serious health effects associated with the illegaltobacco use of tobacco, tobacco products, tobacco-related devices, and nicotine or lobelia delivery devicesand initiation, and to further the official public policy of the State in regardstate to preventingprevent young people from starting to smoke, as stated in Minn. StatsStat. § 144.391, asitmaybeamended fromtimetotime. In making these findings, the City Council accepts the conclusions and recommendations of the U.S. Surgeon General reports, E-cigarette Use Among Youth and Young Adults (2016), The Health Consequences of Smoking — 50 Years of Progress (2014) and Preventing Tobacco Use Among Youth and Young Adults (2012); the Centers for Disease Control and Prevention in their study "studies, Tobacco Use Among Middle and High School Students — United States, 2011–2015 (2016), and Selected Cigarette Smoking Initiation and Quitting Behaviors Among High School Students, United States, 1997," (1998); and of the following medical professionalsscholars in these medicalscientific journals: Khuder SAChen, et alJ., "& Millar, W. J., Age at Smoking Onset and Its Effect on Smoking Cessation," Addictive Behavior 24(5):673-7, September-October 1999of smoking initiation: implications for quitting. HEALTH REPORTS, 9(4), 39–46 (1998); D'’Avanzo, B, et al., "La Vecchia, C., & Negri, E., Age at Starting Smoking and Number of Cigarettes Smoked,"ANNALS OF EPIDEMIOLOGY, 4(6):, 455-59, November 1994; Chen, J & Millar, W J, Age of Smoking Initiation: Implications for Quitting," Health Reports 9(4):39-46, Spring 1998–459 (1994); Everett SA, et alS. A., "Warren, C. W., Sharp, D., Kann, L., Husten, C. G., & Crossett, L. S. Initiation of Cigarette Smoking and Subsequent Smoking Behavior Among U.S. High School Students,"PREVENTIVE MEDICINE , 29(5):, 327-33, November 1999–333 (1999); Giovino, G. A., Epidemiology of Tobacco Use in the United States, ONCOGENE, 21(48), 7326–7340 (2002); Khuder, S. A., Dayal, H. H., & Mutgi, A. B., Age at Smoking Onset and its Effect on Smoking Cessation. ADDICTIVE BEHAVIORS, 24(5), 673–677 (1999); Luke, D. A., Hammond, R. A., Combs, T., Sorg, A., Kasman, M., Mack-Crane, A., Henriksen, L., Tobacco Town: Computational Modeling of Policy Options to Reduce Tobacco Retailer Density, AMERICAN JOURNAL OF PUBLIC HEALTH, 107(5), 740–746 (2017); MINNESOTA DEPARTMENT OF HEALTH, DATA HIGHLIGHTS FROM THE 2017 MINNESOTA YOUTH TOBACCO SURVEY, SAINT PAUL, MN (2018); Tobacco Control Legal Consortium, The Verdict Is In: Findings from United States v. Phillip Morris, The Hazards of Smoking, University of California — San Francisco (2006); Truth Tobacco Industry Documents, https://www.industrydocumentslibrary.ucsf.edu/tobacco/; Xu, X., Bishop, E. E., Kennedy, S. M., Simpson, S. A., & Pechacek, T. F., Annual Healthcare Spending Attributable to Cigarette Smoking: An Update, AMERICAN JOURNAL OF PREVENTIVE MEDICINE, 48(3), 326–333 (2015), copies of which are adopted by reference. Code1988, § 6.34(1)) Sec. 16-158. - 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: Child-Resistant Packaging. Packaging that meets the definition set forth in Code of Federal Regulations, title 16, section 1700.15(b), as in effect on January 1, 2015, and was tested in accordance with the method described in Code of Federal Regulations, title 16, section 1700.20, as in effect on January 1, 2015.” Cigar.Any roll of tobacco that is wrapped in tobacco leaf or in any other substance containing tobacco, with or without a tip or mouthpiece,which is not a cigarette as defined in Minn.Stat.§ 297F .01, subd. 3, as may be amended from time to time. Compliance Checks: The system the City uses to investigate and ensure that those authorized to sell tobacco, tobaccolicensed products, tobacco-related devices, and nicotine or lobelia delivery devices are following and complying with the requirements of this article. Compliance checks shall involve the use of minors as authorized by this article. The term "compliance checks" shall also meanpersons under the useage of minors21 who purchase or attempt to purchase tobacco, tobaccolicensed products, tobacco-related devices, or nicotine or lobelia delivery devices for educational, research and training purposes as authorized by State and Federal laws. Compliance checks may also be conducted by the City or other units of government for the purpose of for educational, research, and training purposes, or for investigating or enforcing appropriate Federal, State or local laws and regulations relating to tobacco, tobaccolicensed products, tobacco-related devices, and nicotine or lobelia delivery devices. . Electronic Delivery Device. Any product containing or delivering nicotine, lobelia, or any other substance, whether natural or synthetic, intended for human consumption through the inhalation of aerosol or vapor from the product. Electronic delivery device includes, but is not limited to, devices manufactured, marketed, or sold as e-cigarettes, e-cigars, e-pipes, vape pens, mods, tank systems, or under any other product name or descriptor. Electronic delivery device includes any component part of a product, whether or not marketed or sold separately. Electronic delivery device does not include any product that has been approved or certified by the U.S. Food and Drug Administration for sale as a tobacco-cessation product, as a tobacco-dependence product, or for other medical purposes, and is marketed and sold for such an approved purpose. Flavored Product. Any licensed product that contains a taste or smell, other than the taste or smell of tobacco, that is distinguishable by an ordinary consumer either prior to or during the consumption of the product, including, but not limited to, any taste or smell relating to chocolate, cocoa, menthol, mint, wintergreen, vanilla, honey, fruit, or any candy, dessert, alcoholic beverage, herb, or spice. A public statement or claim, whether express or implied, made or disseminated by the manufacturer of a licensed product, or by any person authorized or permitted by the manufacturer to make or disseminate public statements concerning such products, that a product has or produces a taste or smell other than a taste or smell of tobacco will constitute presumptive evidence that the product is a flavored product. Individually Packaged: The practice of selling any tobacco or tobacco product wrapped individually for sale. Individually wrapped tobacco and tobacco products shall include but not be limited to single cigarette packs, single bags or cans of loose tobacco in any form, and single cans or other packaging of snuff or chewing tobacco. Cartons or other packaging containing more than a single pack or other container as described in this definition shall not be considered individually packaged. Indoor Area: All space between a floor and a ceiling that is bounded by walls, doorways, or windows, whether open or closed, covering more than 50 percent of the combined surface area of the vertical planes constituting the perimeter of the area. A wall includes any retractable divider, garage door, or other physical barrier, whether temporary or permanent. Licensed Product: The term that collectively refers to any tobacco, tobacco-related device, electronic delivery device, or nicotine or lobelia delivery product. Loosies:The common term used to refer to aLoosies means (1) single or individually packaged cigarette orcigars or cigarettes offered for sale, regardless of whether they have been removed from their original retail packaging, and (2) any other tobaccolicensed product that has been removed from its original retail packaging and sold individually. The term "loosies"offered for sale. Loosies does not include individual cigars with a retail price, after any discounts are applied and before any sales taxes are imposed, of more thanat least $2.003.00 per cigar. Minor: Any natural person who has not yet reached the age of 18 years. 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. Nicotine or Lobelia Delivery DevicesProduct: Any product containing or delivering nicotine or lobelia intended for human consumption, or any part of such a product, that is not tobacco or an electronic delivery device as defined in this section,. Nicotine or lobelia delivery product does not includinginclude any product that has been approved or otherwise certified for legal sale by the United States Food and Drug Administration foras a tobacco use -cessation product, harm reductiona tobacco dependence product, or for other medical purposes, and is being marketed and sold solely for that approved purpose. Pharmacy. A place of business at which prescription drugs are prepared, compounded, or dispensed by or under the supervision of a pharmacist and from which related clinical pharmacy services are delivered. Retail Establishment: Any place of business where tobacco, tobaccolicensed products, tobacco-related devices, or nicotine or lobelia delivery devices are available for sale to the general public. The term "retail establishment" shall include, including, but not be limited to, grocery stores, tobacco products shops, convenience stores, gasoline service stations, bars, and restaurants, and drug stores. Sale: Any transfer of goods for money, trade, barter or other consideration. Self-Service Merchandising: Open displays of tobacco, tobaccolicensed products, tobacco-related devices, or nicotine or lobelia delivery devices in any manner where any person shall havehas access to the tobacco, tobaccolicensed products, tobacco-related devices, or nicotine or lobelia delivery devices, without the assistance or intervention of the licensee or the licensee's employee. The assistanceAssistance or intervention shall entailmeans the actual physical exchange of the tobacco, tobaccolicensed product, tobacco-related device, or nicotine or lobelia delivery device between the customer and the licensee or employee. Self-service sales are interpreted as being any sale where there is not an actual physical exchange of the product between the clerk and the customer. Smoking: Inhaling or, exhaling smoke from any lighted or heated cigar, cigarette, pipe, or any other lighted or heated tobacco or plant product. The term "smoking" also includes, burning, or carrying aany lighted or heated cigar, cigarette, or pipe, or any other lighted or heated product containing, made, or derived from nicotine, tobacco, marijuana, or other plant product, whether natural or synthetic, that is intended for inhalation. For the purpose of this article, the definition of smoking includes the use of electronic cigarettes, including the inhaling and exhaling of vapor from anySmoking also includes carrying or using an activated electronic delivery device asdefinedinMinn. Stats. § 609.685, subd. 1. . Tobacco or Tobacco Products: Tobacco and tobacco products includes cigarettes, e-cigarettes and any. Any product containing, made, or derived from tobacco that is intended for human consumption, whether chewed, smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, or any component, part, or accessory of a tobacco product including but not limited to cigarettes; cigars; cheroots; stogies; perique; granulated, plug cut, crimp cut, ready rubbed, and other smoking tobacco; snuff; snuff flour; cavendish; plug and twist tobacco; fine cut and other chewing tobaccos; shorts; refuse scraps, clippings, cuttings and sweepings of tobacco; and other kinds and forms of tobacco. The term "tobacco" excludesTobacco does not include any tobacco product that has been approved by the United StatesU.S. Food and Drug Administration for sale as a tobacco -cessation product, as a tobacco -dependence product, or for other medical purposes, and is being marketed and sold solely for such an approved purpose. Tobacco-Related Devices: Includes any tobacco product as well as a pipe, e-cigarette,Device. Any rolling papers, ashtraywraps, pipes, or other device intentionally designed or intended to be used in a manner which enables the chewing, sniffing or smokingwith tobacco products. Tobacco related device includes components of tobacco-related devices or tobacco products. , which may be marketed or sold separately. Tobacco related devices may or may not contain tobacco. Vending Machine:. Any mechanical, electric or electronic, or other type of device whichthat dispenses tobacco, tobaccolicensed products or tobacco-related devices upon the insertion of money, tokens or other form of payment directly into the machine by the person seeking to purchase the tobacco, tobaccolicensed product or tobacco-related device. Code1988, § 6.34(2); Ord. No. 462, 2ndSe ries , 7-30-2011; Ord. No. 554, 2ndSe ries , 5-14-2015) Sec. 16-159. - License. a) License Required. No person shall sell or offer to sell any tobacco, tobacco products, (a) tobacco-related device, or nicotine or lobelia delivery devicelicensed product without first having obtained a license to do so from the City. b) Application. An application for a license to sell tobacco, tobaccolicensed products, (b) tobacco-related devices, or nicotine or lobelia delivery devices shall be made on a form provided by the City. The application shall contain the full name of the applicant, the applicant's residential and business addresses and telephone numbers, the name of the business for which the license is sought, and any additional information the City deems necessary. Upon receipt of a completed application, the City Clerk shall forward the application to the City Council for action at its next regularly scheduled City Council meeting. If the City Clerk shall determinedetermines that an application is incomplete, he/shethey shall return the application to the applicant with notice of the information necessary to make the application complete. 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 Clerk in writing of any change in ownership in the business. Any change in the ownership or control of the 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 new owners, and the 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 Council may revoke any license issued upon its determination that a change of ownership of a licensee has actually 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 Council on notice to the licensee. c) Action. The City Council may either approve or deny the application for a license, or it may(c) 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 shall approveapproves the license, the City Clerk shall issue the license to the applicant. If the City Council denies the license, notice of the denial shall be given to the applicant along with notice of the applicant's right to appeal the City Council's decision. 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 be valid for one calendar year from the date of(d) issue. e) Revocation or Suspension. Any license issued under this article may be revoked or suspended(e) as provided in Section 16-168. f) Transfers. All licenses issued under this article shall be valid only on the premises for which the(f) license was issued and only for the person to whom the license was issued. NoThe transfer of any license to another location or person shall be valid without the prior approval of the City Councilis prohibited. g)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. h) Display. All licenses shall be posted and displayed in plain view of the general public on the(g) licensed premises. i) Renewals. The renewal of a license issued under this article shall be handled in the same(h) 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. j) Issuance Asas Privilege and Not a Right. The issuance of a license issued under this article shall (i) be consideredis a privilege and not an absolute right of the applicant and shalldoes not entitle the license holder to an automatic renewal of the license. k)Smoking. Smoking shall not be permitted and no person shall smoke within the indoor area of any establishment with a retail tobacco license. Smoking for the purposes of sampling tobacco and tobacco related products is prohibited. Code1988, § 6.34(3)) State Law reference—Municipallicensingof toba ccogenerally, Minn. Stats. § 461.12. Maximum Number of Licenses. The number of licenses issued under this section shall be capped at (j) the number of licenses in place on January 1, 2020. Any decrease in the number of licenses that occurs after January 1, 2020 due to attrition will decrease the number of available licenses to that extent until the number of available licenses reaches 8. When the maximum number of licenses has been issued, the City may place persons seeking licensure on a waiting list and allow them to apply on a first-come, first-served basis, as existing licenses are not renewed or are revoked. A new applicant who has purchased a business location holding a valid license will be entitled to first priority, provided the new applicant meets all other application requirements in accordance with this ordinance. Sec. 16-160. - Fees. No license shall be issued under this article until the appropriate license fee shall be paid in full. The fee for a license under this article shall be established by the City Council and adopted by ordinancein the City fee schedule, and may be amended from time to time. Code1988, § 6.34(4)) Sec. 16-161. -– Ineligibility and Basis for Denial of License. a) Ineligibility.(a) Pharmacies.No existing license will be eligible for renewal to any pharmacy,including any retail(1) establishment that operates or contains an on-site pharmacy,and no pharmacy or any retail establishment that operates an on-site pharmacy will be granted a new license. Moveable Place of Business. No license shall be issued to a moveable place of business. Only (2) fixed location businesses shall be eligible to be licensed under this article. Grounds for Denial. Grounds for denying the issuance or renewal of a license under this article(b) include, but are not limited to, the following: 1) The applicant is under the age of 1821 years.(1) The applicant is prohibited by Federal, State, or other local law, ordinance, or other regulation (2) from holding a license. 2) The applicant has been convicted within the past five years of any violation of a Federal,(3) State, or local law, ordinance provision, or other regulation relating to tobacco, tobaccolicensed products, tobacco-related devices, or nicotine or lobelia delivery devices. 3) The applicant has had a license to sell tobacco, tobaccolicensed products, tobacco-related (4) devices, or nicotine or lobelia delivery devices suspended or revoked withinduring the 12 months preceding 12 months of 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. The applicant is a business that does not have an operating officer or manager who is (5) eligible pursuant to the provisions of this chapter. The applicant is the spouse of a person ineligible for a license pursuant to the provision of (6) Subsections (b)(2) and (3) of this section or who, in the judgement of the Council, is not the real party in interest or beneficial owner of the business to be operated, under the license. 4) The applicant fails to provide any information required on the application, or provides(7) false or misleading information. Any false statement on an application, or any willful omission of any information called for on such application form, shall work 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. 5)The applicant is prohibited by Federal, State, or other local law, ordinance, or other regulation from holding a license. b) However, except as may otherwise be provided by law, the existence of any particular ground for denial does not mean that the City must deny the license. c) The City shall conduct a background investigation on all new applications and applications to (c) transfer a license. The City may conduct a background and financial check on an application for a renewal of a license if it is in the public interest to do so. If a license is mistakenly issued or renewed to a person, it shall be revoked upon the discovery that the person was ineligible for the license under this article and the City shall provide the person with a notice of revocation, along with information on the right to appeal. No license shall be granted or renewed for operation on any premises on which real estate (d) taxes, assessments, or other financial claims of the City or of the State are due, delinquent, or unpaid. If an action has been commenced pursuant to the provisions of Minn. Stats. ch. 278, questioning the amount or validity of taxes, the Council may, on application by the licensee, waive strict compliance with this provision; no waiver may be granted, however, for taxes, or any portion thereof, which remain unpaid for a period exceeding one year after becoming due unless such one-year period is extended through no fault of the licensee. Code1988, § 6.34(5)) Sec. 16-162. - Prohibited SalesActs. ItIn general.No person shall be a violation of this article for any person to sell or offer to sell any(a) tobacco, tobaccolicensed product, tobacco-related device, or nicotine or lobelia delivery device: 1) To any person under the age of 18 years. 2) By means of any type of vending machine.(1) 3) By means of self-service methods whereby the customer does not need to make a verbal or written request to an employee of the licensed premises in order to receive the tobacco, tobacco product, tobacco-related device, or nicotine or lobelia delivery device and whereby there is not a physical exchange of the tobacco, tobacco product, tobacco-related device, or nicotine or lobelia delivery device between the licensee, or the licensee's employee, and the customer. 4) By means of self-service merchandising. (2) By means of loosies as defined in Section 16-158.(3) 5) Containing opium, morphine, jimson weed, bella donnabelladonna, strychnos, cocaine,(4) marijuana, or other deleterious, hallucinogenic, toxic or controlled substances except nicotine and other substances found naturally in tobacco or added as part of an otherwise lawful manufacturing process. It is not the intention of this provision to ban the sale of lawfully manufactured cigarettes or other tobacco products. That is liquid, whether or not such liquid contains nicotine, which is intended for human (5) consumption and use in an electronic delivery device, in packaging that is not child-resistant. Upon request by the city, a licensee must provide a copy of the certificate of compliance or full laboratory testing report for the packaging used. 6) By any other means, to any other person, on in any other manner or form prohibited by(6) Federal, Statefederal, state or other local law, ordinance provision, or other regulation. Legal Age. No person shall sell any licensed product to any person under the age of 21.(b) Age verification. Licensees shall verify by means of government issued photographic (1) identification that the purchaser is at least 21 years of age. Verification is not required for a person over the age of 30. That the person appeared to be 30 years of age or older does not constitute a defense to a violation of this subsection. Signage. Notice of the legal sales age and age verification requirement must be posted (2) 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 or is considering making a purchase. Flavored Products. No person shall sell or offer for sale any flavored products. (c) Minimum Cigar Price. No person shall sell or offer to sell any Cigar, sold individually or as a (d) multi-unit package, and regardless of whether it is within its intended retail packaging, for a sales price, after any discounts are applied and before sales taxes are imposed, of less than $3.00 per Cigar. Smoking Prohibited. Smoking, including smoking for the purpose of sampling of licensed products, is (e) prohibited within the indoor area of any retail establishment licensed under this ordinance. Samples Prohibited. No person shall distribute samples of any licensed product free of charge or at (f) a nominal cost. Code1988, § 6.34(6)) Sec. 16-163. - – Additional Requirements Storage. All tobacco, tobaccolicensed products, tobacco-related devices, and nicotine or lobelia (a) delivery devices shall either be stored behind a counter or other area not freely accessible to customers, or in a case or other storage unit not left open and accessible to the general public. Code1988, § 6.34(7)) Sec. 16-164. - Responsibility. All licensees under this article shall beare responsible for the actions of their employees in regard to the sale of tobacco, tobacco products, tobacco-related devices, or nicotine or lobelia delivery devices, offer to sell, and furnishing of licensed products on the licensed premises, and the. The sale of an item, offer to sell, or furnishing of any licensed product by an employee shall be considered a sale byan act of the license holderlicensee. Nothing in this articlesection shall be construed as prohibiting the City from also subjecting the clerkemployee to whateverany civil penalties arethat the City deems to be appropriate under this article, Stateordinance, state or Federalfederal law, or other applicable law or regulation. Code1988, § 6.34(8)) Sec. 16-165. - Compliance Checks and Inspections. All licensed premises shall be open to inspection by the City police or other authorized City official during regular business hours. From time to time, but at least twice per year, the City shall conduct compliance checks. All premises licensed under this subdivision shall be open to inspection by the city during regular business hours. From time to time, but at least once per year, the City shall conduct compliance checks by engaging,. In accordance with state law, the written consent of their parents or guardians, minors overCity will conduct at least one compliance check that involves the participation of one person between the ageages of 15 years but less than 18 years to enter the licensed premises to attempt to purchase tobacco, tobacco products, tobacco-related devices, or nicotine or lobelia delivery devices. Minors used for the purpose of compliance checks shall be supervised by city designated law enforcement officers or other designated city personnel. Minors used for compliance checks shall not be guilty of unlawful possession of tobacco, tobacco products, tobacco-related devices, or nicotine or lobelia delivery devices when those items are obtained as a part of the compliance check. and 17 and may conduct an additional compliance check involving one person between the ages of 18 and 20. No minorperson used in compliance checks shall attempt to use a false identification misrepresenting the minor'stheir age, and all minors. All persons lawfully engaged in a compliance check shall answer all questions about the minor'stheir age asked by the licensee or his/hertheir employee, and shall produce any identification, if any exists, for which he/she isthey are asked. Persons used for the purpose of compliance checks shall be supervised by law enforcement or other designated personnel. Minors used for compliance checks shall not be guilty of unlawful possession licensed products when those items are obtained as a part of the compliance check. Nothing in this article shall prohibit compliance checks authorized by Statestate or Federalfederal laws for educational, research, or training purposes, or required for the enforcement of a particular State or Federal law. Code1988, § 6.34(9)) State Law reference—Comp liancechecks, Minn. Stats. § 461.12, subd. 5. Additionally, from time to time, the City will conduct inspections to determine compliance with any or all other aspects of this ordinance. Sec. 16-166. - Other IllegalProhibited Acts. Unless otherwise provided, the following acts shall be a violation of this article: 1)Illegal Sales. It shall be a violation of this article for any person to sell or otherwise provide any tobacco, tobacco product, tobacco-related device, or nicotine or lobelia delivery device to any minor. 2)Illegal Possession. It shall be a violation of this article for any minor to have in his/her possession any tobacco, tobacco product, tobacco-related device, or nicotine or lobelia delivery device. This subsection shall not apply to minors lawfully involved in a compliance check. 3)Illegal Use. It shall be a violation of this article for any minor to smoke, chew, sniff or otherwise use any tobacco, tobacco product, tobacco-related device, or nicotine or lobelia delivery device 4) Illegal Procurement. It shall be a violation of this article for any minorperson 21 years of age or (a) older to purchase or, attempt to purchase, or otherwise obtain any tobacco, tobaccolicensed product, tobacco-related device, or nicotine or lobelia delivery device, and it shall be a violation of this article for any person to purchase or otherwise obtain those items on behalf of a minorperson under the age of 21. It shall furtheralso be a violation for any person 21 years of age or older to coerce or attempt to coerce a minorperson under the age of 21 to illegally purchase or otherwise obtain or useattempt to purchase any tobacco, tobaccolicensed product, tobacco-related device, or nicotine or lobelia delivery device. This subsection shall not apply to minors lawfully involved in a compliance check.. 5) Use of False Identification. It shall be a violation of this article for any minorperson to attempt to (b) disguise his/her true age by the use of a falseany form of false identification, whether the identification is that of another person or one on which the age of the personthat has been modified or tampered with to represent an age older than the actual age of the person using that identification. Code1988, § 6.34(10)) Sec. 16-167. - Exceptions and Defenses. Nothing in this article shall prevent the providing of tobacco, tobacco products, or tobacco-related devices, or nicotine or lobelia delivery devices to a minorany person as part of aan indigenous practice or lawfully recognized religious, spiritual, or cultural ceremony or practice. It shall be an affirmative defense to the violation of this article for a person to have reasonably relied on proof of age as described by Statestate law. Code1988, § 6.34(11)) State Law reference—De fens es , Minn. Stats. § 461.12, subd. 6. Sec. 16-168. - Violations and Penalty. a) Administrative Civil Penalties—Individuals. If a person who is not a licensee is found to have(a) violated this article, the person shall be charged an administrative penalty as follows: 1) First Violation. The Council shall impose a civil fine not to exceed $50.00.(1) 2) Second Violation Within 12 months. The Council shall impose a civil fine not to exceed(2) 100.00. 3) Third Violation Within 12 months. The Council shall impose a civil fine not to exceed(3) 150.00. b) Same—Licensee. If a licensee or an employee of a licensee is found to have violated this article,(b) the licensee shall be charged an administrative penalty as follows: 1) First Violation. The Council shall impose a civil fine of $500.00 and suspend the license for(1) not less than five consecutive days1 day. 2) Second Violation Within 24 Months. The Council shall impose a civil fine of $750.00 and (2) suspend the license for not less than 15 consecutive days. 3)Third Violation Within 2436 Months. The Council shall impose a civil fine of $1,000.00 and suspend the license for not less than 303 consecutive days. Third Violation Within 36 Months. The Council shall impose a civil fine of $2,000.00 and (3) suspend the license for not less than 10 consecutive days. 4) Fourth Violation Within 2436 Months. The Council shall revoke the license for at least one(4) year. c) Administrative Penalty Procedures. Notwithstanding anything to the contrary in this section:(c) 1) Any of the administrative civil penalties set forth in this section that may be imposed by(1) the Council, may in the alternative be imposed by an administrative citation under Section 1-9. 2) If one of the foregoing penalties is imposed by an action of the Council, no penalty shall(2) take effect until the licensee or person has received notice (served personally or by mail) of the alleged violation and of the opportunity for a hearing before the Council, and such notice must be in writing and must provide that a right to a hearing before the Council must be requested within 10 business days of receipt of the notice or such right shall terminate. d) Misdemeanor Prosecution. Nothing in this section shall prohibit the City from seeking(d) prosecution as a misdemeanor for any alleged violation of this article. e) Defense. Itisa def ens e tothechar geof sellingtobaccoortobacco-relateddev icestoapersonunder theageof 18years, thatthelicenseeor individual , inmakingthesale, reasonablyandingoodfaithrelieduponrepresentationofproofofagedescribedinMinn. Stats. § 340A.503. f) Exceptions. AnIndianma yfurnishtobaccotoanIndian under theageof 18yearsifthetobaccoisfurnished as partofatraditional Indianspiritual orcultural ceremony . Forpurposes ofthissubsection, theterm "Indian" meansapersonwh oisamember ofanIndiantribeas definedinMinn. Stats. § 260.755, subd. 12. Code1988, § 6.34(13); Ord. No. 462, 2ndSe ries , 7-30-2011; Ord. No. 462, 2ndSe ries , 7-30-2011; Ord. No. 474, 2ndSe ries , 12-16-2011; Ord. No. 565, 2ndSe ries , 7-31-2015) State Law reference—Administrativepenalties, Minn. Stats. § 461.12, subd. 3; de fens es , Minn. Stats. § 461.12, subd. 6. Sec. 16-169. - Violation a Misdemeanor. Every person who violates a section, subsection, paragraph or provision of this article, 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 or gross misdemeanor and may also be subject to administrative penalties as otherwise stated in specific provisions. Code1988, § 6.34(14); Ord. No. 462, 2ndSe ries , 7-30-2011) Secs. 16-170—16-191. - Reserved. Sec. 16-169. - Severability. If any section or provision of this ordinance is held invalid, such invalidity will not affect other sections or provisions that can be given force and effect without the invalidated section or provision. Sec. 16-170 – Effective Date. This ordinance becomes effective on January 1, 2020. Document comparison by Workshare 10.0 on Friday, September 27, 2019 8:43:10 AM Input: Document 1 ID file://L:\City Open Matters\Ordinances\Tobacco\ARTICLE VI. TOBACCO (Original).doc Description ARTICLE VI. TOBACCO (Original) Document 2 ID L:\City Open Matters\Ordinances\Tobacco\First Reading\ARTICLE VI. TOBACCO (Rev. 9.27.19).doc Description L:\City Open Matters\Ordinances\Tobacco\First Reading\ARTICLE VI. TOBACCO (Rev. 9.27.19).doc Rendering set Standard Legend: Insertion Deletion Moved from Moved to Style change Format change Moved deletion Inserted cell Deleted cell Moved cell Split/Merged cell Padding cell Statistics: Count Insertions 291 Deletions 256 Moved from 12 Moved to 12 Style change 0 Format changed 0 Total changes 571 ORDINANCE NO. 670 AN ORDINANCE AMENDING THE CITY CODE Repealing in its Entirety Article VI. Tobacco and Adding a New Article VI. Tobacco Licensing and Regulations The City Council of the City of Golden Valley ordains as follows: Section 1. City Code, Article VI entitled “Tobacco” is hereby repealed in its entirety. Section 2. City Code, Article VI is hereby amended by adding a new Article VI. Tobacco Licensing and Regulation reading as follows: ARTICLE VI. – TOBACCO Sec. 16-157. - Purpose and Intent. Because the City recognizes that the sale of commercial tobacco, tobacco-related devices, electronic delivery devices, and nicotine or lobelia delivery products to persons under the age of 18 violates both state and federal laws; and because studies, which the City accepts and adopts, have shown that youth use of any commercial tobacco product has increased to 26.4% in Minnesota; and because nearly 90% of smokers begin smoking before they have reached the age of 18 years, and that almost no one starts smoking after age 25; and because marketing analysis, public health research, and commercial tobacco industry documents reveal that tobacco companies have used menthol, mint, fruit, candy, and alcohol flavors as a way to target youth and young adults and that the presence of such flavors can make it more difficult to quit; and because studies show that youth and young adults are especially susceptible to commercial tobacco product availability, advertising, and price promotions at tobacco retail environments; and because commercial tobacco use has been shown to be the cause of many serious health problems which subsequently place a financial burden on all levels of government, this ordinance is intended to regulate the sale of commercial tobacco, tobacco-related devices, electronic delivery devices, and nicotine or lobelia delivery products for the purpose of enforcing and furthering existing laws, to protect youth and young adults against the serious health effects associated with tobacco use and initiation, and to further the official public policy of the state to prevent young people from starting to smoke, as stated in Minn. Stat. § 144.391, as it may be amended from time to time. In making these findings, the City Council accepts the conclusions and recommendations of the U.S. Surgeon General reports, E-cigarette Use Among Youth and Young Adults (2016), The Health Consequences of Smoking — 50 Years of Progress (2014) and Preventing Tobacco Use Among Youth and Young Adults (2012); the Centers for Disease Control and Prevention in their studies, Tobacco Use Among Middle and High School Students — United States, 2011–2015 2016), and Selected Cigarette Smoking Initiation and Quitting Behaviors Among High School Students, United States, 1997 (1998); and of the following scholars in these scientific journals: Chen, J., & Millar, W. J., Age of smoking initiation: implications for quitting. HEALTH REPORTS, 9(4), 39–46 (1998); D’Avanzo, B., La Vecchia, C., & Negri, E., Age at Starting Smoking and Number of Cigarettes Smoked, ANNALS OF EPIDEMIOLOGY, 4(6), 455–459 (1994); Everett, S. A., Warren, C. W., Sharp, D., Kann, L., Husten, C. G., & Crossett, L. S. Initiation of Cigarette Ordinance No. 670 -2- October 15, 2019 Smoking and Subsequent Smoking Behavior Among U.S. High School Students, PREVENTIVE MEDICINE, 29(5), 327–333 (1999); Giovino, G. A., Epidemiology of Tobacco Use in the United States, ONCOGENE, 21(48), 7326–7340 (2002); Khuder, S. A., Dayal, H. H., & Mutgi, A. B., Age at Smoking Onset and its Effect on Smoking Cessation. ADDICTIVE BEHAVIORS, 24(5), 673–677 1999); Luke, D. A., Hammond, R. A., Combs, T., Sorg, A., Kasman, M., Mack-Crane, A., Henriksen, L., Tobacco Town: Computational Modeling of Policy Options to Reduce Tobacco Retailer Density, AMERICAN JOURNAL OF PUBLIC HEALTH, 107(5), 740–746 (2017); MINNESOTA DEPARTMENT OF HEALTH, DATA HIGHLIGHTS FROM THE 2017 MINNESOTA YOUTH TOBACCO SURVEY, SAINT PAUL, MN (2018); Tobacco Control Legal Consortium, The Verdict Is In: Findings from United States v. Phillip Morris, The Hazards of Smoking, University of California — San Francisco (2006); Truth Tobacco Industry Documents, https://www.industrydocuments library.ucsf.edu/tobacco/; Xu, X., Bishop, E. E., Kennedy, S. M., Simpson, S. A., & Pechacek, T. F., Annual Healthcare Spending Attributable to Cigarette Smoking: An Update, AMERICAN JOURNAL OF PREVENTIVE MEDICINE, 48(3), 326–333 (2015), copies of which are adopted by reference. Sec. 16-158. - 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: Child-Resistant Packaging. Packaging that meets the definition set forth in Code of Federal Regulations, title 16, section 1700.15(b), as in effect on January 1, 2015, and was tested in accordance with the method described in Code of Federal Regulations, title 16, section 1700.20, as in effect on January 1, 2015.” Cigar. Any roll of tobacco that is wrapped in tobacco leaf or in any other substance containing tobacco, with or without a tip or mouthpiece, which is not a cigarette as defined in Minn. Stat. § 297F.01, subd. 3, as may be amended from time to time. Compliance Checks: The system the City uses to investigate and ensure that those authorized to sell licensed products are following and complying with the requirements of this article. Compliance checks involve the use of persons under the age of 21 who purchase or attempt to purchase licensed products. Compliance checks may also be conducted by the City or other units of government for educational, research, and training purposes, or for investigating or enforcing Federal, State or local laws and regulations relating to licensed products. Electronic Delivery Device. Any product containing or delivering nicotine, lobelia, or any other substance, whether natural or synthetic, intended for human consumption through the inhalation of aerosol or vapor from the product. Electronic delivery device includes, but is not limited to, devices manufactured, marketed, or sold as e-cigarettes, e-cigars, e-pipes, vape pens, mods, tank systems, or under any other product name or descriptor. Electronic delivery device includes any component part of a product, whether or not marketed or sold separately. Electronic delivery device does not include any product that has been approved or certified by the U.S. Food and Drug Administration for sale as a tobacco-cessation Ordinance No. 670 -3- October 15, 2019 product, as a tobacco-dependence product, or for other medical purposes, and is marketed and sold for such an approved purpose. Flavored Product. Any licensed product that contains a taste or smell, other than the taste or smell of tobacco, that is distinguishable by an ordinary consumer either prior to or during the consumption of the product, including, but not limited to, any taste or smell relating to chocolate, cocoa, menthol, mint, wintergreen, vanilla, honey, fruit, or any candy, dessert, alcoholic beverage, herb, or spice. A public statement or claim, whether express or implied, made or disseminated by the manufacturer of a licensed product, or by any person authorized or permitted by the manufacturer to make or disseminate public statements concerning such products, that a product has or produces a taste or smell other than a taste or smell of tobacco will constitute presumptive evidence that the product is a flavored product. Individually Packaged: The practice of selling any tobacco or tobacco product wrapped individually for sale. Individually wrapped tobacco and tobacco products shall include but not be limited to single cigarette packs, single bags or cans of loose tobacco in any form, and single cans or other packaging of snuff or chewing tobacco. Cartons or other packaging containing more than a single pack or other container as described in this definition shall not be considered individually packaged. Indoor Area: All space between a floor and a ceiling that is bounded by walls, doorways, or windows, whether open or closed, covering more than 50 percent of the combined surface area of the vertical planes constituting the perimeter of the area. A wall includes any retractable divider, garage door, or other physical barrier, whether temporary or permanent. Licensed Product: The term that collectively refers to any tobacco, tobacco-related device, electronic delivery device, or nicotine or lobelia delivery product. Loosies: Loosies means (1) single or individually packaged cigars or cigarettes offered for sale, regardless of whether they have been removed from their original retail packaging, and 2) any other licensed product that has been removed from its original retail packaging and offered for sale. Loosies does not include individual cigars with a retail price, after any discounts are applied and before any sales taxes are imposed, of at least $3.00 per cigar. 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. Nicotine or Lobelia Delivery Product: Any product containing or delivering nicotine or lobelia intended for human consumption, or any part of such a product, that is not tobacco or an electronic delivery device as defined in this section. Nicotine or lobelia delivery product does not include any product that has been approved or otherwise certified for legal sale by the United States Food and Drug Administration as a tobacco-cessation product, a tobacco dependence product, or for other medical purposes, and is being marketed and sold solely for that approved purpose. Pharmacy. A place of business at which prescription drugs are prepared, compounded, or dispensed by or under the supervision of a pharmacist and from which related clinical pharmacy services are delivered. Ordinance No. 670 -4- October 15, 2019 Retail Establishment: Any place of business where licensed products are available for sale to the general public, including, but not be limited to, grocery stores, tobacco products shops, convenience stores, gasoline service stations, bars, and restaurants. Sale: Any transfer of goods for money, trade, barter or other consideration. 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. Smoking: Inhaling, exhaling, burning, or carrying any lighted or heated cigar, cigarette, or pipe, or any other lighted or heated product containing, made, or derived from nicotine, tobacco, marijuana, or other plant, whether natural or synthetic, that is intended for inhalation. Smoking also includes carrying or using an activated electronic delivery device. Tobacco. Any product containing, made, or derived from tobacco that is intended for human consumption, whether chewed, smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, or any component, part, or accessory of a tobacco product including but not limited to cigarettes; cigars; cheroots; stogies; perique; granulated, plug cut, crimp cut, ready rubbed, and other smoking tobacco; snuff; snuff flour; cavendish; plug and twist tobacco; fine cut and other chewing tobaccos; shorts; refuse scraps, clippings, cuttings and sweepings of tobacco; and other kinds and forms of tobacco. Tobacco does not include any product that has been approved by the U.S. Food and Drug Administration for sale as a tobacco-cessation product, as a tobacco-dependence product, or for other medical purposes, and is being marketed and sold solely for such an approved purpose. Tobacco-Related Device. Any rolling papers, wraps, pipes, or other device intentionally designed or intended to be used with tobacco products. Tobacco related device includes components of tobacco-related devices or tobacco products, which may be marketed or sold separately. Tobacco related devices may or may not contain tobacco. 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. Sec. 16-159. - License. a) License Required. No person shall sell or offer to sell any licensed product 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 of the applicant, the applicant's residential and business addresses and telephone numbers, the name of the business for which the license is sought, and any additional information the City deems necessary. Upon receipt of a completed application, the City Clerk shall forward the application to the City Council for action at its next regularly scheduled City Council meeting. If the City Clerk determines that an application is incomplete, they shall return the application to the applicant with notice of the information necessary to make the application complete. 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 Ordinance No. 670 -5- October 15, 2019 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 Clerk in writing of any change in ownership in the business. Any change in the ownership or control of the 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 new owners, and the 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 Council may revoke any license issued upon its determination that a change of ownership of a licensee has actually 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 Council on notice to the licensee. 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 Clerk shall issue the license to the applicant. If the City Council denies the license, notice of the denial shall be given to the applicant along with notice of the applicant's right to appeal the City Council's decision. 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 be valid for one calendar year from the date of issue. e) Revocation or Suspension. Any license issued under this article may be revoked or suspended as provided in Section 16-168. f) Transfers. All licenses issued under this article shall be valid only on the premises for which the license was issued and only for the person to whom the license was issued. The transfer of any license to another location 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. j) Maximum Number of Licenses. The number of licenses issued under this section shall be capped at the number of licenses in place on January 1, 2020. Any decrease in the number of licenses that occurs after January 1, 2020 due to attrition will decrease the number of available licenses to that extent until the number of available licenses reaches 8. When the maximum number of licenses has been issued, the City may place persons seeking Ordinance No. 670 -6- October 15, 2019 licensure on a waiting list and allow them to apply on a first-come, first-served basis, as existing licenses are not renewed or are revoked. A new applicant who has purchased a business location holding a valid license will be entitled to first priority, provided the new applicant meets all other application requirements in accordance with this ordinance. Sec. 16-160. - Fees. No license shall be issued under this article until the appropriate license fee shall be paid in full. The fee for a license under this article shall be established by the City Council and adopted in the City fee schedule, and may be amended from time to time. Sec. 16-161. - Ineligibility and Basis for Denial of License. a) Ineligibility. 1) Pharmacies. No existing license will be eligible for renewal to any pharmacy, including any retail establishment that operates or contains an on-site pharmacy, and no pharmacy or any retail establishment that operates an on-site pharmacy will be granted a new license. 2) 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. b) Grounds for Denial. Grounds for denying the issuance or renewal of a license under this article 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 of any violation of a Federal, State, or local law, ordinance provision, or other regulation relating to 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 Subsections (b)(2) and (3) of this section or who, in the judgement of the Council, is not the real party in interest or beneficial owner of the business to be operated, under the license. Ordinance No. 670 -7- October 15, 2019 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 work 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. c) The City shall conduct a background investigation on all new applications and applications to transfer a license. The City may conduct a background and financial check on an application for a renewal of a license if it is in the public interest to do so. If a license is mistakenly issued or renewed to a person, it shall be revoked upon the discovery that the person was ineligible for the license under this article and the City shall provide the person with a notice of revocation, along with information on the right to appeal. d) No license shall be granted or renewed for operation on any premises on which real estate taxes, assessments, or other financial claims of the City or of the State are due, delinquent, or unpaid. If an action has been commenced pursuant to the provisions of Minn. Stats. ch. 278, questioning the amount or validity of taxes, the Council may, on application by the licensee, waive strict compliance with this provision; no waiver may be granted, however, for taxes, or any portion thereof, which remain unpaid for a period exceeding one year after becoming due unless such one-year period is extended through no fault of the licensee. Sec. 16-162. - Prohibited Acts. a) In general. No person shall sell or offer to sell any licensed product: 1) By means of any type of vending machine. 2) By means of self-service merchandising. 3) By means of loosies as defined in Section 16-158. 4) Containing opium, morphine, jimson weed, belladonna, strychnos, cocaine, marijuana, or other deleterious, hallucinogenic, toxic or controlled substances except nicotine and other substances found naturally in tobacco or added as part of an otherwise lawful manufacturing process. It is not the intention of this provision to ban the sale of lawfully manufactured cigarettes or other tobacco products. 5) That is liquid, whether or not such liquid contains nicotine, which is intended for human consumption and use in an electronic delivery device, in packaging that is not child- resistant. Upon request by the city, a licensee must provide a copy of the certificate of compliance or full laboratory testing report for the packaging used. 6) By any other means, to any other person, on in any other manner or form prohibited by federal, state or other local law, ordinance provision, or other regulation. 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. Verification is not required for Ordinance No. 670 -8- October 15, 2019 a person over the age of 30. That the person appeared to be 30 years of age or older does not constitute a defense to a violation of this subsection. 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 or is considering making a purchase. c) Flavored Products. No person shall sell or offer for sale any flavored products. d) Minimum Cigar Price. No person shall sell or offer to sell any Cigar, sold individually or as a multi-unit package, and regardless of whether it is within its intended retail packaging, for a sales price, after any discounts are applied and before sales taxes are imposed, of less than 3.00 per Cigar. e) Smoking Prohibited. Smoking, including smoking for the purpose of sampling of licensed products, is prohibited within the indoor area of any retail establishment licensed under this ordinance. f) Samples Prohibited. No person shall distribute samples of any licensed product free of charge or at a nominal cost. Sec. 16-163. - 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. Sec. 16-164. - 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. Sec. 16-165. - Compliance Checks and Inspections. All premises licensed under this subdivision shall be open to inspection by the City during regular business hours. From time to time, but at least once per year, the City shall conduct compliance checks. In accordance with state law, the City will conduct at least one compliance check that involves the participation of one person between the ages of 15 and 17 and may conduct an additional compliance check involving one person between the ages of 18 and 20. No person used in compliance checks shall attempt to use a false identification misrepresenting their age. All persons lawfully engaged in a compliance check shall answer all questions about their age asked by the licensee or their employee, and produce any identification, if any exists, for which they are asked. Persons used for the purpose of compliance checks shall be Ordinance No. 670 -9- October 15, 2019 supervised by law enforcement or other designated personnel. Minors used for compliance checks shall not be guilty of unlawful possession licensed products when those items are obtained as a part of the compliance check. Nothing in this article shall prohibit compliance checks authorized by state or federal laws for educational, research, or training purposes, or required for the enforcement of a particular State or Federal law. Additionally, from time to time, the City will conduct inspections to determine compliance with any or all other aspects of this ordinance. Sec. 16-166. - Other Prohibited Acts. Unless otherwise provided, the following acts shall be a violation of this article: a) Illegal Procurement. It shall be a violation of this article for any person 21 years of age or older to purchase, attempt to purchase, or otherwise obtain any licensed product on behalf of a person under the age of 21. It shall also be a violation for any person 21 years of age or older to coerce or attempt to coerce a person under the age of 21 to purchase or attempt to purchase any licensed product. b) Use of False Identification. It shall be a violation of this article for any person to use any form of false identification, whether the identification is that of another person or one that has been modified or tampered with to represent an age older than the actual age of the person using that identification. Sec. 16-167. - Exceptions and Defenses. Nothing in this article shall prevent the providing of tobacco or tobacco-related devices to any person as part of an indigenous practice or lawfully recognized religious, spiritual, or cultural ceremony or practice. It shall be an affirmative defense to the violation of this article for a person to have reasonably relied on proof of age as described by state law. Sec. 16-168. - Violations and Penalty. a) Administrative Civil Penalties—Individuals. If a person who is not a licensee is found to have violated this article, the person shall be charged an administrative penalty as follows: 1) First Violation. The Council shall impose a civil fine not to exceed $50.00. 2) Second Violation Within 12 months. The Council shall impose a civil fine not to exceed 100.00. 3) Third Violation Within 12 months. The Council shall impose a civil fine not to exceed 150.00. b) Same—Licensee. 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 Council shall impose a civil fine of $500.00 and suspend the license for not less than 1 day. 2) Second Violation Within 36 Months. The Council shall impose a civil fine of $1,000.00 and suspend the license for not less than 3 consecutive days. Ordinance No. 670 -10- October 15, 2019 3) Third Violation Within 36 Months. The Council shall impose a civil fine of $2,000.00 and suspend the license for not less than 10 consecutive days. 4) Fourth Violation Within 36 Months. The Council shall revoke the license for at least one year. c) Administrative Penalty Procedures. Notwithstanding anything to the contrary in this section: 1) Any of the administrative civil penalties set forth in this section that may be imposed by the Council, may in the alternative be imposed by an administrative citation under Section 1-9. 2) If one of the foregoing penalties is imposed by an action of the Council, no penalty shall take effect until the licensee or person has received notice (served personally or by mail) of the alleged violation and of the opportunity for a hearing before the Council, and such notice must be in writing and must provide that a right to a hearing before the Council must be requested within 10 business days of receipt of the notice or such right shall terminate. d) Misdemeanor Prosecution. Nothing in this section shall prohibit the City from seeking prosecution as a misdemeanor for any alleged violation of this article. Sec. 16-169. - Severability. If any section or provision of this ordinance is held invalid, such invalidity will not affect other sections or provisions that can be given force and effect without the invalidated section or provision. Sec. 16-170 - Effective Date. This ordinance becomes effective on January 1, 2020. Section 3. City Code Chapter 1 entitled “General Provisions” and Sec. 1-8 entitled General Penalty; Continuing Violations” are hereby adopted in their entirety, by reference, as though repeated verbatim herein. Section 4. This ordinance shall take effect from and after January 1, 2020. Adopted by the City Council this 15th day of October, 2019. s/Shepard M. Harris Shepard M. Harris, Mayor ATTEST: s/Kristine A. Luedke Kristine A. Luedke, City Clerk SUMMARY OF ORDINANCE NO. 670 AN ORDINANCE AMENDING THE CITY CODE Repealing in its Entirety Article VI. Tobacco and Adding a New Article VI. Tobacco Licensing and Regulations This is a summary of the provisions of the above ordinance which has been approved for publication by the City Council. This ordinance amends Repealing in its Entirety Article VI. Tobacco and Adding a New Article VI. Tobacco Licensing and Regulations. This Article provides for license requirements and regulations for tobacco and incorporates the following new polices: Prohibiting the sale of flavored tobacco, including menthol, at all retailers Prohibiting the sale of tobacco at pharmacies Prohibiting the sale of tobacco to people under 21 Capping the amount of tobacco licenses issued by the City at 8 Increasing the minimum price for certain tobacco products Prohibiting free samples Requiring liquid nicotine products to be sold in child proof packaging This ordinance shall take effect upon publication. NOTICE: the foregoing is only a summary of the ordinance. A copy of the full text of this ordinance is available for inspection during regular office hours at the office of the City Clerk. Adopted by the City Council this 15th day of October, 2019. s/Shepard M. Harris Shepard M. Harris, Mayor ATTEST: s/Kristine A. Luedke Kristine A. Luedke, City Clerk Golden Valley City Council Meeting October 15, 2019 Agenda Item 6. B. Golden Valley 4d Affordable Housing Program Prepared By Emily Anderson, Planning Intern Summary Minnesota Statutes section 273.128 allows certain low-income rental properties to qualify for a rate reduction in property taxes from a 1.25% classification rate to a 0.75% classification. A property can qualify in four ways for this rate reduction. One way to qualify is through participation in a 4d Affordable Housing Program sponsored by a local unit of government.1 4d programs preserve affordable housing by helping apartment building owners obtain property tax reductions if they agree to keep 20% or more of their rental units affordable to households making 60% of Area Median Income for 10 years. In Golden Valley, there are 418 units over seven buildings that currently have 4d property tax status.2 There are an additional 532 NOAH units in nine apartment complexes that would likely qualify for a 4d tax incentive if the City were to adopt a 4d Affordable Housing Program (“4d Program”). The City can encourage these properties to commit to maintaining affordable units by establishing its own 4d Program. The City can establish its 4d Program by passing the attached resolution. Under the program, the City would offer financial assistance to interested property owners. The property owners would agree to keep 20% or more of their rental units affordable to households making 60% of Area Median Income for 10 years. These commitments would be recorded in a participation agreement and declaration, examples of which are attached to this memorandum. The City Council considered the 4d Program for first time at the March 12, 2019 Council/Manager Meeting and directed staff to further investigate the process and cost of adopting such a program. The HRA discussed 4d tax incentive programs at its September 10, the 2019 work session. At that session, the HRA directed staff to develop a program for the City with a budget of $11,000 to cover the costs discussed below. 1 Minn. Stats. § § 273.13, subd. 25(e); 273.128. 2 These units qualify under criteria other than a locally sponsored 4d program. See Minn. Stat. § 273.128, subd. 1. City Council Regular Meeting Executive Summary City of Golden Valley October 15, 2019 2 Financial/Budget Considerations Staff recommends that the HRA allocate $11,000 to the 4d Program in its 2020 budget. This amount would cover all costs for the first year of the program if all of the targeted properties participate and sign up all of their eligible units. This would fund the following required costs: The property owner’s application fee of $10 per unit up to a cap of $150 to Minnesota Housing first year only); The cost of recording each property’s affordability declaration in the Hennepin County property records (one-time cost); and A one-time grant of $100 per affordable unit up to a cap of $1,000 to each enrolled property. Depending on its adoption rate by rental property owners, the 4d Program will end up decreasing the City’s overall property tax levy by reducing the tax rate of participating properties. The exact amount of lost revenue is hard to evaluate without staff knowing the level of participation, however the attached set of tables shows several estimates of the 4d Program’s potential impact in its first year on property tax levies. Recommended Action Motion to adopt Resolution establishing the Golden Valley 4d Affordable Housing Program and authorizing staff to make and execute Participation Agreements for enrolling eligible properties in the program. Supporting Documents Resolution Authorizing the Execution of the Golden Valley 4d Affordable Housing Program (1 page) Golden Valley 4d Affordable Housing Program Guide (4 pages) Participation Agreement (2 pages) Declaration of Restrictive Covenants (7 pages) 4d Tax Impact Calculations (1 page) RESOLUTION NO. 19-58 RESOLUTION AUTHORIZING THE EXECUTION OF THE GOLDEN VALLEY 4D AFFORDABLE HOUSING PROGRAM WHEREAS, Minnesota Statute 273.128 allows rental properties to be eligible for a class rate reduction in property taxes if at least 20% of the units are rent and income restricted by a declaration recorded against the property and receive financial assistance from a local unit of government; and WHEREAS at the direction of the Golden Valley City Council and the Housing and Redevelopment Authority in and for the City of Golden Valley, City staff has designed the Golden Valley 4d Affordable Housing Program (“4d Program”); and WHEREAS, the 4d Program will provide financial assistance through the recording of a rent and income restrictive declaration against the property, a one-time grant, and the 4d application fee for the first year to eligible rental properties who sign up for the program; and WHEREAS, the 4d Program is intended to secure affordable housing for 10 year periods in the City of Golden Valley at 60% of the area median income as determined by the United States Department of Housing and Urban Development; and WHEREAS, the 4d Program is consistent with the City’s goals to address the issues of equity and affordable housing as identified in the 2040 Comprehensive Plan and City Equity Plan. NOW THEREFORE BE IT RESOLVED, by the City Council of Golden Valley That the City Council authorizes the creation of the Golden Valley 4d Affordable Housing Program to help preserve naturally occurring affordable housing in the City of Golden Valley; and That the City Council delegates authority to the City Manager or their designee to make and execute Participation Agreements in the form approved by the City Attorney for enrolling eligible properties into the 4d Program in accordance with the program’s policies and procedures established from time to time by the City Council. Adopted by the City Council of Golden Valley, Minnesota on this 15th day of October, 2019. Shepard M. Harris, Mayor ATTEST: Kristine A. Luedke, City Clerk Golden Valley 4d Affordable Housing Program Affordable, safe, and stable housing is vital to the wellbeing and prosperity of the City of Golden Valley. Due to current market trends, already burdened low- to moderate-income residents are spending more than 30% of their income on housing and utilities and many rental property owners face increased operating costs, maintenance costs, and property taxes. In response, the City of Golden Valley is creating its 4d Affordable Housing Program (“4d Program”). The 4d Program offers incentives that will reduce property tax liability with the ultimate goal of preserving affordability and strengthening the bottom line for rental property owners. What are the benefits to participants? Qualified rental property owners that agree to keep a minimum of 20% of units per building affordable to households making 60% (or lower) of area median income for 10 years will receive 10 year eligibility for the 4d property tax rate, which provides a tax reduction on qualifying units. A 2015 study by the Housing Justice Center suggests that 4d property tax status would directly result in a property tax reduction of approximately $40 per unit per month. This amount varies based on the value of the property, the tax levy, and the number of units enrolled in the program, but as tax bills tend to go up every year, the value of the 4d tax reduction would likely continue to increase in value. Additional benefits to rental property owners include: 1. Payment of the first year’s application fee to the State of Minnesota for certification of the 4d property tax classification ($10 per unit, capped at $100 per property) 2. One time grant in the amount of $100 per affordable unit, capped at $1,000 per property 3. Free energy efficiency and healthy homes assessments through Xcel Energy and CenterPoint Energy 4. Payment of the recording fee for the declaration against the property 5. Reduced renter turnover due to tenant stability 6. Lower maintenance and operating costs, if owners take advantage of opportunities to make energy efficiency improvement to properties Who is eligible? To be eligible for the 4d Program, owners of multifamily rental properties must meet the following criteria: 1. The building or tax parcel must have at least 10 units 2. Able to register at least 20% of the rental units in a building to be affordable to households whose family income is at or below 60% of the area median income 3. Are a licensed rental property in good standing with no code compliance violations 4. Buildings can include units with owner occupants, but only rental units are eligible for 4d tax status. The City of Golden Valley reserves the right to deny applications for the Golden Valley 4d Affordable Housing Program if the owner or property manager applying owns or manages other properties with outstanding code compliance issues. Process and Program Requirements 1. The City of Golden Valley receives and reviews 4d Program applications on an annual basis and will accept applications from ______________ to February ___. 2. Property owners submit a 4d program application and rent roll to the City and sign a participation agreement. The participation agreement includes a commitment to accept tenant based assistance and affirmative fair marketing, and prohibits involuntary displacement of existing tenants. 3. The City of Golden Valley drafts and records a declaration against the property that limits the rents and income on the qualified units for 10 years. A recorded document is required for 4d tax classification status per Minnesota Statute 273.128. The declaration also limits rent increases for tenants in affordable units to 5% or less annually as long as the rent stays at or below the 60% AMI limit as determined by the U.S. Department of Housing and Urban Development each year for the Minneapolis-St. Paul-Bloomington area. Exceptions to this increase limit will only be allowed if the unit is turning over to a new tenant before the next allowed annual increase or the owner provides evidence that a larger rent increase is needed to address deferred maintenance or unanticipated operating cost increases. 4. The City of Golden Valley will provide a grant to each 4d property, in the amount of $100 per affordable unit, capped at $1,000 per property. The funding is intended to help property owners cover the cost of 4d administrative and reporting requirements associated with the program as well as to help rental property owners make health, safety, and energy efficiency improvements to properties. 5. Rental property owners select the percentage of units to restrict with a required minimum of 20%. If rental property owners select more than 20% of their units, after 5 years and upon request, City staff will approve a reduction of the percentage of rent-restricted units to a minimum level of 20% of the units per property. 6. Property owners complete and sign a Minnesota Housing Low Income Rental Classification Application once the declaration is filed. 7. The City of Golden Valley will submit a signed 4d application, application fee, and declaration to Minnesota Housing on behalf of the rental property owner for the first year only. After the first year, rental property owners are responsible for submitting annual applications to Minnesota Housing to renew 4d tax classification status. 8. Optionally, property owners may be eligible for the Multifamily Building Efficiency Program through Xcel Energy and/or CenterPoint Energy. This free energy assessment includes direct install of low-cost improvements such as LED lights and faucet aerators. Additionally, because the building would be certified as multifamily affordable housing, twice the amount of incentives would be available compared to multifamily market rate housing. More information can be found at multifamilyenergysolutions.com. Modifications to Declarations The declaration for the 4d Program runs with the property. Anyone buying or selling 4d property should contact the City’s Planning Manager, Jason Zimmerman, to complete an assignment, assumption, and consent form transferring the declaration to the new property owner. Any other changes to the declaration, such as revisions to the Exhibit B document specifying which units in the building are restricted, should also contact Mr. Zimmerman. Annual Compliance Beyond the first year, 4d Program property owners are required to submit the following documents annually to maintain their 4d tax classification status: 1. Annual 4d application to Minnesota Housing 2. Annual report form to the City of Golden Valley These forms will be provided on Minnesota Housing and the City of Golden Valley’s websites. 2019 Rent and Income Restrictions Rent and income limits are based on 60% of the Minneapolis-St. Paul-Bloomington area median income (AMI) as determined and updated by the U.S. Department of Housing and Urban Development each year in the spring. 60% AMI Maximum Rent Limits, FY 2019 60% AMI Maximum Income Limits, FY 2019 Unit Type Rent Limit Studio/Efficiency $1,050 1 Bedroom $1,125 2 Bedrooms $1,350 3 Bedrooms $1,560 4 Bedrooms $1,740 5 Bedrooms $1,920 The City of Golden Valley will publish an annual rent and income schedule based on the Minneapolis- St. Paul-Bloomington 60% area median income (AMI) standard set by the U.S. Department of Housing and Urban Development. Rental property owners do not need to verify incomes of existing tenants. Thereafter, increased incomes of tenants in affordable units will not violate the program requirements. If units turn over and new tenants move in, owners must verify tenant incomes and report them to the City of Golden Valley on an annual basis. Owners can verify tenant incomes using the Adjusted Gross Income reported on the tenant’s tax returns. Additionally, owners can advertise vacancies on HousingLink, as renters who meet income qualification standards for the program often use this website to find housing. Household Size Income Limit 1 person $42,000 2 people $48,000 3 people $54,000 4 people $60,000 5 people $64,800 6 people $69,600 7 people $74,400 8 people $79,200 4d AFFORDABLE HOUSING PROGRAM PARTICIPANT AGREEMENT Property owner(s): Property address: Legal description of property: Total number of units in property: Percentage (%) of units restricted to be affordable to and occupied by households at or below 60 percent the area median income (AMI): A. Owner certifies that he/she/they are the Owner(s) of record of the Property. B. Owner has previously submitted to the City a complete 4d Program application and rent roll demonstrating that _____% of the rental housing units located on the Property have rents that do not exceed 30% of the gross income of a family whose income equals 60% of the median family income as most recently established by HUD for the Minneapolis/St. Paul standard metropolitan statistical area. C. Owner has agreed to record a declaration against the above described Property limiting the rents and incomes on _____% of the rental housing units located on the Property as further described in the form of declaration attached hereto as Exhibit A (the “Declaration”) so that Owner can qualify for preferable tax classification as class 4d under Minnesota Statutes, sections 273.128 and 273.13, subdivision 25. The Owner specifically represents that such preferable tax classification along with access to the other financial incentives described in this Participation Agreement is sufficient consideration for executing and filing the Declaration. D. The Owner certifies that no existing tenants in the Property have been or will be evicted because of the filing of the Declaration. E. Upon satisfaction of the foregoing conditions, the City will, in cooperation with the Owner: a. Record the Declaration in the Hennepin County land records. b. Submit Owner’s first application to the State of Minnesota for the certification of 4d classification under Minnesota Statutes §273.128 and pay the associated application fee 4d Application Fee”). c. Provide Owner with a grant in an amount equal to $_________ ($100/affordable unit not to exceed $1,000) to assist the Owner in covering the cost of making health, safety and energy efficiency improvements to the Property. Owner must submit a plan for the proposed use of the funds and certify the use of the funds to make property improvements. IN FURTHERANCE WHEREOF, the parties have executed this Agreement as of 20__. OWNER(S): CITY OF GOLDEN VALLEY: Name: _______________________________ Name: _______________________________ Timothy J. Cruikshank, City Manager DECLARATION OF RESTRICTIVE COVENANTS THIS DECLARATION OF RESTRICTIVE COVENANTS, is made on or as of the day of 20 by , a (“Owner”), having its offices at and the City of Golden Valley, a Minnesota municipal corporation (the “City”). WHEREAS, Owner and the City have entered into that certain Affordable 4D Participation agreement dated , 20 (the “Participation Agreement”), pursuant to which the City is offering certain financial incentives in exchange for Owner limiting rents and incomes on certain rental housing units located at ; and WHEREAS, but for the making and recording of this Declaration, the City would be unwilling to qualify the property for preferable tax classification or provide the other financial incentives described in the Participation Agreement; NOW, THEREFORE, in consideration of said mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: SECTION 1. Definitions. In this Declaration, unless a different meaning clearly appears from the context: AFFORDABILITY PERIOD – A period commencing on the Date of this Declaration and continuing for 10 years. AFFORDABLE UNITS– Units in the Project as identified on Exhibit B attached hereto unless reduced pursuant to Section 8 hereof]. ANNUAL INCOME –Adjusted gross income as defined in § 62 of the United States Internal Revenue Code, of all members of a household (this is the “Adjusted Gross Income” amount reported on IRS form 1040). HUD – The United States Department of Housing and Urban Development. LAND – The real property located in Hennepin County, Minnesota, and legally described on Exhibit A attached hereto and made a part hereof. LOW-INCOME FAMILIES – Individuals or families whose Annual Income does not exceed 60 percent of the Median Family Income. MEDIAN FAMILY INCOME – The “Median Family Income” as most recently established by HUD for the Minneapolis/St. Paul standard metropolitan statistical area, adjusted for family size. PROJECT – A unit rental housing project located at in Golden Valley, Minnesota. SECTION 2. Representations. Owner represents to and for the benefit of the City that Owner has duly authorized, executed and delivered this Declaration pursuant to proper authorization therefor; that this Declaration constitutes a valid and binding obligation of the Owner, enforceable in accordance with its terms, except only as such enforceability may be limited by bankruptcy, moratorium, reorganization or other laws, or principles of equity, affecting creditors’ rights; and that the execution and delivery of this Declaration does not constitute a breach, violation or default under any law, regulation, order, judgment or ruling binding upon Owner, or a default under any indenture, mortgage, agreement or other instrument to which Owner is subject or by which it or its property is bound. SECTION 3. Restrictions on Use. A. Owner agrees to develop, operate and manage the Project according to the terms of this Declaration for the duration of the Affordability Period. B. During the Affordability Period, this Declaration shall constitute covenants running with the land and be binding on the successors and assigns of Owner and on all parties having or acquiring any rights, title, or interest in the Project. C. Rental of the Project shall be in accordance with the following: a) All of the Affordable Units shall be occupied by households with incomes that are 60 percent or less of the Median Family Income and shall bear rents not greater than 30 percent of the adjusted income of a family whose gross income equals 60 percent of the Median Family Income. The requirements of this Section 3(C)(a) shall be satisfied despite a temporary non-compliance with Section 3(C)(a), if the non-compliance is caused because either (i) a current tenant as of the date of this Declaration is in one of the Affordable Units or (ii) the incomes of tenants that were income qualified upon occupancy increase and if actions satisfactory to the City are being taken to ensure that all vacancies of Affordable Units are filled in accordance with this Section 3(C)(a) until the non-compliance is corrected. b) The initial rent schedule for the Affordable Units is attached hereto as Exhibit B. In no event will the City require the Affordable Unit gross rents to be set lower than the rents listed on Exhibit B. c) Subject to the limitations on rent imposed by Section 3(C)(a), Owner shall not raise rents for tenants in the Affordable Units by more than 6% annually unless the Owner provides evidence that a larger rent increase is needed to address deferred maintenance or unanticipated operating cost increases and City staff approves such larger rent increase. d) Owner may not refuse to lease an Apartment Unit in the Project to a prospective tenant because the prospective tenant is a Section 8 certificate or voucher holder, or a participant in any other tenant-based assistance program. e) The City may, upon request, review and approve rents not more frequently than annually for consistency with this Agreement. f) Except for tenants already in the Affordable Units, Owner shall secure an income certification from the proposed tenant(s) of each Affordable Unit prior to such tenant(s)’ initial occupancy. Such income certificate shall contain a statement of the total Annual Income for the previous year of each person who proposes to live in the Affordable Unit during that year. Upon request of the City, Owner shall re-certify the annual Incomes of tenants in Affordable Units, provided that the City may not request re-certification more frequently than every three (3) years. Owner shall retain all records related to compliance with this Declaration for a minimum of six (6) years after termination of the Affordability Period. g) On or before March 31 of each year of the Affordability Period, Owner shall make annual reports to the City in the form attached hereto as Attachment I. h) Owner shall use affirmative fair housing marketing practices in soliciting renters, determining eligibility and concluding all transactions and provide evidence of compliance to the City upon request. SECTION 4. Restrictions on Sale of the Project. Owner agrees not to sell, transfer, convey or assign the Affordable Units (except leases in the ordinary course of business) without first obtaining the express written assumption by the purchaser, transferee, grantee, or assignee of the obligations imposed on Owner by this Declaration; provided, however, that this Declaration shall remain enforceable against a purchaser, transferee, grantee, or assignee even in the absence of a written assumption. Any sale in violation of this Declaration shall be null and void at the election of the City. SECTION 5. Covenants: Binding Upon Successors in Interest. It is intended and agreed that the covenants provided in this Agreement shall be covenants running with the land and that they shall, in any event, and without regard to technical classification or designation, legal or otherwise, be binding on Owner, the successors and assigns of Owner, and all parties having or acquiring any right, title, or interest in all or any part of the Land. This Declaration shall be enforceable against all such parties to the fullest extent permitted by law and equity for the benefit and in favor of the City, its successors and assigns. It is expressly agreed and acknowledged that: the covenants provided in this Declaration are in addition to the provisions of any other documents; this Declaration shall not be deemed to limit or merge into any other documents or vice versa; this Declaration shall survive the expiration or termination of any of the other documents; and the satisfaction or release of any other documents shall not be deemed to a satisfaction or release of this Declaration. SECTION 6. Remedies for Default. In the event of any default, failure, violation, or any other action or inaction by Owner specified in this Declaration, the City at its option may institute such actions or proceedings at law or in equity as it may deem desirable for effectuating the provisions of this Declaration, including without limitation actions for specific performance, damages, and injunctive relief, and including also any remedy allowed under the terms of any other documents. In any successful action or proceeding to enforce its rights under this Declaration, the City shall be entitled to the recovery from Owner of reasonable attorneys’ fees. SECTION 7. Notices and Demands. A notice, demand, or other communication under this Declaration by either party to the other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally, and in the case of Owner, is addressed to or delivered personally to Owner at: in the case of the City, is addressed to or delivered personally to the City at: City of Golden Valley Physical Development Department 7800 Golden Valley Road Golden Valley, MN 55427 ATTENTION: Planning Manager or at such other address with respect to either such party as that party may, from time to time, designate in writing and forward to the other as provided in this Section. SECTION 8. Reduction of Affordable Units. If Owner has complied with the terms of this Declaration for at least five (5) years, then, upon request from Owner, the City will execute an amendment to this Declaration agreeing to reduce the number of Affordable Units down to a minimum of __________ Affordable Units.] IN WITNESS WHEREOF, Owner has caused this Declaration to be executed this _______ day of 20___. Name: _________________________________ Title: _________________________________ STATE OF MINNESOTA ) ss COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _____ day of _______________, 2019, by ______________________, as Owner. Notary Public This instrument drafted by: CITY OF GOLDEN VALLEY 7800 Golden Valley Road Golden Valley, MN 55427 EXHIBIT A TO AFFORDABLE HOUSING DECLARATION OF RESTRICTIVE COVENANTS LEGAL DESCRIPTION EXHIBIT B TO AFFORDABLE HOUSING DECLARATION OF RESTRICTIVE COVENANTS INITIAL RENT SCHEDULE Unit # Bedroom Size Maximum Rent EXHIBIT C TO AFFORDABLE HOUSING DECLARATION OF RESTRICTIVE COVENANTS Annual Certification Project Address of Affordable Units of Total Units Owner Property Manager Monitoring Year UNIT INFORMATION TENANT NAME MOVE IN ELIGIBILITY RENTS Unit # BR's Tenant Name Move In Date Income at Household Meets Lowest Section 8 Voucher Y/N) Rent Unit Rent Restrict ed Comme ntsIncome Restriction at AMI Move-in at 60% AMI Building Name Crosswoods Copacabana Colonial Trentwood West End Valley Village Valley View Valley Creek West End Trails Total Number of units 35 49 36 54 79 112 72 37 58 532 Grant 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 9,000.00 MHFA Application Fee 150.00 150.00 150.00 150.00 150.00 150.00 150.00 150.00 150.00 1,350.00 Record Declaration 46.00 46.00 46.00 46.00 46.00 46.00 46.00 46.00 46.00 414.00 Total 1,196.00 1,196.00 1,196.00 1,196.00 1,196.00 1,196.00 1,196.00 1,196.00 1,196.00 10,764.00 Difference in Property Tax 6,846.00 11,660.00 7,255.00 11,867.00 19,974.00 23,012.00 20,393.00 12,286.00 12,084.00 125,377.00 Upfront Costs and Property Tax 8,042.00 12,856.00 8,451.00 13,063.00 21,170.00 24,208.00 21,589.00 13,482.00 13,280.00 136,141.00 20.23 in up front costs per unit Loss of $196.30 in City tax revenue per unit 210.89 total per unit Building Name Crosswoods Copacabana Colonial Trentwood West End Valley Village Valley View Valley Creek West End Trails Total Number of units 35 49 36 54 79 112 72 37 58 532 Number of units in this calculated scenerio 17 25 18 27 40 56 36 19 29 267 Grant 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 9,000.00 MHFA Application Fee 150.00 150.00 150.00 150.00 150.00 150.00 150.00 150.00 150.00 1,350.00 Record Declaration 46.00 46.00 46.00 46.00 46.00 46.00 46.00 46.00 46.00 414.00 Total 1,196.00 1,196.00 1,196.00 1,196.00 1,196.00 1,196.00 1,196.00 1,196.00 1,196.00 10,764.00 Difference in Property Tax 3,423.00 5,830.00 3,627.50 5,933.50 9,987.00 11,506.00 10,196.50 6,143.00 6,042.00 62,688.50 Upfront Costs and Property Tax 4,619.00 7,026.00 4,823.50 7,129.50 11,183.00 12,702.00 11,392.50 7,339.00 7,238.00 73,452.50 40.31 in up front costs per unit Loss of $234.78 in City tax revenue per unit 275.10 total per unit Building Name Crosswoods Copacabana Colonial Trentwood West End Valley Village Valley View Valley Creek West End Trails Total Number of units total 35 49 36 54 79 112 72 37 58 532 Number of units in this calculated scenerio 7 10 7 11 16 22 14 7 12 106 Grant 700.00 1,000.00 700.00 1,000.00 1,000.00 1,000.00 1,000.00 700.00 1,000.00 8,100.00 MHFA Application Fee 70.00 100.00 70.00 110.00 150.00 150.00 140.00 70.00 120.00 980.00 Record Declaration 46.00 46.00 46.00 46.00 46.00 46.00 46.00 46.00 46.00 414.00 Total 816.00 1,146.00 816.00 1,156.00 1,196.00 1,196.00 1,196.00 816.00 1,166.00 9,494.00 Difference in Property Tax 1,608.40 2,571.20 1,451.00 2,612.60 4,234.00 4,602.40 4,078.60 2,696.40 1,816.80 25,671.40 Upfront Costs and Property Tax 2,424.40 3,717.20 2,267.00 3,768.60 5,430.00 5,798.40 5,274.60 3,512.40 2,982.80 35,175.40 89.56 in up front costs per unit Loss of $206.85 in City tax revenue per unit 294.49 total per unit This is an estimate prepared as requested. Actual tax liability may be different and is dependent upon many factors. This estimate assumes as much value as possible fits within the 1st value tier of $139,000 per unit for taxes payable in 2018. Tax estimates are based upon assessed values and tax rates payable in 2018. 2018 Pay 2019 Estimated Tax in Golden Valley 100% of buildings, 100% of eligible units, first year only (estimate) 100% of buildings, minimum of 20% of eligible units, first year only (estimate) 100% of buildings, 50% of eligible units, first year only (estimate) Golden Valley City Council Meeting October 15, 2019 Agenda Item 6. C. First Consideration of Gambling Ordinance Amendments Prepared By Kris Luedke, City Clerk Summary The City’s gambling ordinance has not been updated in several decades. (City Code § 16-432 et. seq.) Staff recommends updating this section of the code due to changes in the State Law that governs licensing of gambling organizations. With the update, the City will no longer require organizations conducting lawful gambling to obtain a city license. Under State Statute, the Minnesota Gambling Control Board licenses lawful gambling organizations. Financial Or Budget Considerations Neutral – The City will no longer collect application fees of $100 but no staff time will be required to administrator the license and renewal process. The total fee amount collected in 2018 was $300. Recommended Action Motion to adopt first consideration Ordinance #671, Amending Article XV. GAMBLING by removing Section 16-434. Licensing and Investigation Fee and updating Section 16-436 Responsible Parties. Supporting Documents Proposed Article XV. Gambling section (2 pages) Ordinance #670 Amending Article XV. GAMBLING by removing Section 16-434. Licensing and Investigation Fee and updating Section 16-436 Responsible Parties (1 page) ARTICLE XV. - GAMBLING[5] Footnotes: State Law reference— Lawful gambling, Minn. Stats. § 349.11 et seq.; local regulation of lawful gambling, Minn. Stats. § 349.213. Sec. 16-432. - Definitions. Pursuant to Minn. Stats. ch. 349, the State regulates and licenses lawful gambling within the State. The provisions of said Chapter 349 relating to definition of terms are hereby adopted and made a part of this article as if set out in full. Code 1988, § 6.46(1)) Sec. 16-433. - Exempt Gambling. The terms of this article shall not apply to those organizations exempt from State licensing pursuant to Minn. Stats. § 349.166. Code 1988, § 6.46(2)) Sec. 16-434. - Licensing and Investigation Fee. Organizations required to obtain a license for gambling operations from the State shall also obtain a license from the City by filling out an application form provided by the City. Licenses issued by the City shall be good for a term of one year from January 1 to December 31. Only those organizations eligible for a gambling license issued by the State and which are located within the City shall be approved to conduct lawful gambling operations within the City. Organizations applying for a license to conduct lawful gambling in the City shall pay an investigation fee of $250.00; organizations renewing such a license shall pay an investigation fee of $100.00. Said fee shall be paid along with the submission of its application to the City Clerk. The fee shall reimburse the City for its cost incident to a background investigation of the organization. Code 1988, § 6.46(3)) Sec. 16-435. - Charitable Contribution. Any organization licensed by the State to conduct lawful gambling ("licensed organizations") shall make a specific contribution of 10 percent from its net profits derived from lawful gambling operations within the City to a fund administered by the City. For the purposes of this section, the term "net profits" means profits less amounts expended for allowable expenses. Such contribution shall be paid monthly into a fund administered and regulated by the City. All sums received into the fund shall be distributed by the City for a "lawful purpose" as defined in Minn. Stats. ch. 349. Such contribution shall be paid monthly, not more than 20 days after the end of the month. Such payment shall be accompanied by a report containing the following information upon such form as may be required by the City: ARTICLE XV. – GAMBLING Page 2 1) Total amount of receipts from lawful gambling operations within the City during the reporting period. 2) The total amount of prizes actually paid out by the organization during the reporting period from such gross receipts. 3) The total amount of money expended for allowable expenses attributable to such gross receipts. 4) The amount of net profits derived from lawful gambling operations during the reporting period attributable to such gross profits. 5) The signature of the person filing the return. 6) The period covered by the return. Code 1988, § 6.46(4)) Sec. 16-436. - Responsible Parties. The gambling manager of a licensed organization shall be exclusively responsible for the timely filing of all reports, license renewals or and other documents required by this article. Code 1988, § 6.46(5)) Secs. 16-437—16-455. - Reserved. ORDINANCE NO. 671 AN ORDINANCE AMENDING THE CITY CODE Amending Article XV. GAMBLING by removing Section 16-434. Licensing and Investigation Fee and updating Section 16-436 Responsible Parties The City Council for the City of Golden Valley hereby ordains as follows: Section 1. City Code Section 16-434. Licensing and Investigation Fee is deleted in its entirely and the remaining Sections are to be renumbered accordingly. Section 2. City Code Section 16-436. Responsible Parties is amended to read as follows: The gambling manager of a licensed organization shall be exclusively responsible for the timely filing of all reports and other documents required by this article. Section 3. City Code Chapter 1 entitled “General Provisions” and Sec. 1-8 entitled General Penalty; Continuing Violations” are hereby adopted in their entirety, by reference, as though repeated verbatim herein. Adopted by the City Council this 15th day of October, 2019. s/Shepard M. Harris Shepard M. Harris, Mayor ATTEST: s/Kristine A. Luedke Kristine A. Luedke, City Clerk Golden Valley City Council Meeting October 15, 2019 Agenda Item 6. D. First Consideration Establishing A 2020 Master Fee Schedule Prepared By Sue Virnig, Finance Director Summary First Consideration of the master fee schedule will be presented by staff at this meeting. Those fees that have changed are noted in red or bold in 2020 and would become effective on January 1, 2020. If no change, the same rate will apply that was used in 2019. Financial Or Budget Considerations The rates that were included were discussed with the 2020-2021 Proposed Budget and 2020-2029 Proposed Capital Improvement Program. Recommended Action Motion to adopt first consideration Ordinance #672 establishing a 2020 Master Fee Schedule. Supporting Documents Ordinance #672 Establishing a 2020 Master Fee Schedule (33 pages) ORDINANCE NO. 672 AN ORDINANCE AMENDING THE CITY CODE Establishing A 2020 Master Fee Schedule The City Council for the City of Golden Valley hereby ordains: Section 1. The City Code requires that certain fees for City services and licenses be established from time to time by the City Council. Section 2. The Master Fee Schedule attached as Exhibit A is hereby adopted as the city’s fee schedule effective January 1, 2020, unless otherwise noted. The fee schedule is on file in the City Clerk’s Office during business hours. Section 3. City Code Chapter 1 entitled “General Provisions” and Sec. 1-8 entitled “General Penalty; Continuing Violations” are hereby adopted in their entirety, by reference, as though repeated verbatim herein. Section 4. This ordinance shall take effect from and after its passage and publication as required by law. Adopted by the City Council this 15 day of October, 2019. s/Shepard M. Harris Shepard M. Harris, Mayor ATTEST: s/Kristine A. Luedke Kristine A. Luedke, City Clerk 2020 Proposed Fee Schedule Exhibit A CITY OF GOLDEN VALLEY FEE SCHEDULE TABLE OF CONTENTS ADMINISTRATION 3 LICENSES 3 MISCELLANEOUS FEES 7 ENGINEERING 9 FIRE DEPARTMENT 12 INSPECTIONS DEPARTMENT 14 PLANNING DEPARTMENT 18 POLICE DEPARTMENT 20 PUBLIC UTILITIES 21 PARK & RECREATION 24 RECREATION 24 BROOKVIEW 28 BROOKVIEW GOLF COURSE / 316 BAR & GRILL 29 DONATIONS 32 2 ADMINISTRATION LICENSES CITY CODE SECTION RENEWAL DATE ADOPTED FEE PROPOSED 2020 FEE AMUSEMENT DEVICES Section 16-95 Pinball Machine, Video Game or Pool Table each location 1-Apr $15.00 each device 1-Apr $15.00 AUCTIONING CHICKEN COOP LICENSE Initial Application Fee $75.00 Annual License Renewal Fee 1-Apr $25.00 CIGARETTES - TOBACCO PRODUCTS Over the counter 1-Jan $275.00 $450.00 DOG KENNEL Per Kennel 1-Apr $200.00 FIREWORKS Retail consumer fireworks that sell other items 1-May $100.00 Retail consumer fireworks, retailers that sell only fireworks 1-May $350.00 GARBAGE HAULERS (See also Recycling Haulers) Base Fee per Hauler $150.00 Per Vehicle 1-Apr $50.00 GASOLINE STATIONS Dispensers 1 - 4 (each)Per Location 1-Apr $75.00 Over four dispensers (each)Per Location $50.00 LAWFUL GAMBLING LICENSE First year 1-Jan $250.00 remove Renewal after 1st year 1-Jan $100.00 remove LIQUOR LICENSING Section Code 4-41 Liquor License Application Packet $20.00 remove Liquor - Investigation Fee Liquor-Wine & Beer new applicant $1,000.00 Liquor On-sale, Off-sale, and Sunday sale and Wine new applicant $3,000.00 $1,500.00 Non-refundable administrative fee plus actual costs for investigation $500+Actual costs Liquor - Miscellaneous Change thru the year Auctioneers do not need to be licensed in the City of Golden Valley. However, they have to show us a copy of a license or bond from the county or state and provide us a letter on the date, time and place of the auction. 3 ADMINISTRATION LICENSES CITY CODE SECTION RENEWAL DATE ADOPTED FEE PROPOSED 2020 FEE Liquor On, Off and Sunday Sale and Wine (renewal or misc changes)per change $100.00 Liquor License State Law 340A.408 Sunday sale 1-Jul $200.00 Off-sale 1-Jul $200.00 On-sale 1-Jul $8,000.00 Wine On-sale 1-Jul $2,000.00 Club 1-Jul up to 200 members $300.00 200-500 members $500.00 501-1,000 members $650.00 1,001-2,000 members $800.00 2001-4000 members $1,000.00 4001-6000 members $2,000.00 Over 6000 members $3,000.00 Liquor - On-sale 1-Jul Non-Intoxicating Malt $500.00 Brewer Tap Room $600.00 Cocktail Room $600.00 Liquor - Off-sale 1-Jul Non-Intoxicating Malt $150.00 Brew Pub - Malt Liquor $200.00 Small Brewer $200.00 Distilled Spirits $200.00 Liquor - Temporary Non-Intoxicating/Intoxicatng Malt Liquor License $100.00 MASSAGE THERAPIST - INDIVIDUAL Certificate each individual/person 1-Jan $100.00 Investigation fee $100.00 MASSAGE THERAPIST PREMISE LICENSE 1-Jan Operating location $500.00 Investigation fee $200.00 MOBILE FOOD VENDING Non-residential zoning districts Up to 3 days (City Parks - limit 3 days)per day $40.00 Up to 120 days $150.00 Residential zoning districts Up to 2 permits in a 12-month period per permit $40.00 NEW/USED VEHICLE SALES 1-Sep $400.00 4 ADMINISTRATION LICENSES CITY CODE SECTION RENEWAL DATE ADOPTED FEE PROPOSED 2020 FEE PEDDLERS AND SOLICITORS 1-Jan Each Employee $30.00 PAWNBROKER AND PRECIOUS METAL Dealer Location 1-Jan $5,000.00 Dealer 1-Jan $400.00 Investigation Fee $3,000.00 Non-refundable administrative fee plus actual costs for investigation $500+Actual costs APS Transaction Fee $1.30 RECYCLING HAULERS (MULTI FAMILY APARTMENT)1-Apr Base Fee per Hauler $150.00 Per Vehicle $50.00 RENTAL DWELLING LICENSE Single Family Dwellings One Unit Dwelling License 1-Jul $125.00 Re-inspection $100.00 Twin Homes & Duplexes License per Dwelling Unit Per Dwelling Unit 1-May $125.00 Re-inspection per unit/per address $100.00 Condominiums & Townhomes License Per Dwelling Unit Per Dwelling Unit 1-Sep $125.00 Re-inspection per unit/per address $100.00 Group Homes / homes with services License Per Dwelling Unit 1-Nov $125.00 Re-inspection per unit/per address $100.00 Multiple Unit Dwelling 3 or more units per building 1-Mar 3 - 50 Units $175.00 51 - 150 Units $225.00 151 + Units $300.00 Re-inspection per unit/per address $100.00 Star Program Fees Based on participation level Non-Participant $35/unit Level 1 $20/unit Level 2 $12/unit Level 3 $8/unit Level 4 $0/unit Background check / Identification card 5 ADMINISTRATION LICENSES CITY CODE SECTION RENEWAL DATE ADOPTED FEE PROPOSED 2020 FEE SEXUALLY ORIENTED BUSINESS License Fee per operating location 1-Jan $5,000.00 Investigation Fee $3,000.00 Non-refundable administrative fee $500+Actual costs 6 ADMINISTRATION MISCELLANEOUS FEES ADOPTED FEE PROPOSED 2020 FEE ADDRESS CHANGE $50.00 ADMINISTRATIVE PERMIT $75.00 Seasonal, Farm Produce, Christmas Tree Sales, etc in Commercial Zoning District ADMINISTRATIVE CITATIONS - NON RENTAL HOUSING 1st Citation $100.00 2nd Citation $250.00 3rd Citation $500.00 4th Citation and subsequent violations in 12 month period $500.00 ADMINISTRATIVE CITATIONS - RENTAL DWELLINGS 1st citation per dwelling $100.00 2nd citation per dwelling $250.00 3rd citation per dwelling $500.00 per dwelling $500.00 ADMINISTRATIVE CITATIONS 1st citation per violation $100.00 2nd citation per violation $250.00 3rd citation per violation $500.00 per violation $500.00 CITATION APPEAL filing fee per violation $25.00 CERTIFICATION FEE (SPECIAL ASSESSMENT)$30.00 CITY CEMETERY Cemetery Plot $500.00 Open/Close Fee: Crematory (up to 2 per lot)per lot $200.00 Burial $750.00 DOCUMENTS City Code Full book in binder Cost of book, binder +20% All information is on the Municode website at: https://library.municode.com/mn/golden_valley/codes/code_of_ordinances 4th citation and subsequent violations in 12 month period 4th citation and subsequent violations in 12 month period 7 ADMINISTRATION MISCELLANEOUS FEES ADOPTED FEE PROPOSED 2020 FEE City Maps 10.00 Comprehensive Plan Copies Minnesota Rules, part 1205.0300, subpart 4 Black & White - letter or legal size documents of 100 or fewer pages .25/page Color - letter or legal size documents .33/page Digital Format Aerial photography time & material Custom Maps or Map Layers time & material Topography time & material Special Assessment Search non-owner $15.00 Video Reproduction per tape, DVD, CD + shipping $20.00 DOMESTIC PARTNER REGISTRATION Initial Registration $40.00 Amendment/Notice of Termination $25.00 Certified copy of Registration $5.00 ELECTRIC VEHICLE CHARGING STATION 0 - 3 hours / hour $0.90 3+ hours / hour $1.20 PARADE/SPECIAL EVENT $25.00 PERSONNEL (OVERTIME WOULD BE 1.5 X RATE) Staff Attorney 100/hr Plats, Record Drawings, Other Plats (i.e. address maps, building plans,comp plan, zoning) 8 ENGINEERING ADOPTED FEE PROPOSED 2020 FEE EQUIPMENT CHARGE (Per Hour) (Personnel will be added) Utility Vehicle includes personnel does not include personnel $100.00 $45.00 Utility Equipment includes personnel does not include personnel $200.00 Heavy Equipment does not include personnel costs $125.00 Medium Equipment does not include personnel $80.00 Light Equipment not include personnel $45.00 FLOODPLAIN SEARCH LETTER $50.00 FORCED TREE REMOVAL cost + 20% MICROMOBILITY SHARING OPERATIONS Implementation and oversight of License Agreement $250.00 PERSONNEL (OVERTIME WOULD BE 1.5 X RATE) Public Works Employee $62/hr NATIVE VEGETATION LANDSCAPE PERMIT $100.00 RIGHT OF WAY Access Permit-Temporary $50.00 Delay Penalty - Right of Way Minn. Rule 7819.1000 subp. 3 $500/day Driveway Replacement Permit $125.00 In Boulevard Excavation Permit per opening $200.00 In Pavement Excavation Permit per opening (includes curb alterations)$400.00 Obstruction Permit-Permanent, per obstruction (includes courtesy benches)$150.00 Obstruction permit-Temporary $100.00 Overhead Utility Repair per location No Charge Sewer jet, vac truck, sewer camera, sewer rodder Front end loader, 360 Backhoe, Pickup sweeper, Tandem axle truck, Aerial truck Single axle dump truck, Water truck, Tractor backhoe, Utility tractor/ accessory, 15 ft cut lawn mower, brush chipper, asphalt roller, asphalt paver, skid steer, tool cat, trackless Truck - one ton and under, Air compressor, Water pump, Generator, Steamer, Asphalt/saw, Concrete, Cable tracer) 9 ENGINEERING ADOPTED FEE PROPOSED 2020 FEE Underground Utility 0 to 100 Feet Administrative permit fee $250.00 per foot fee $1.50 over 100 Feet Administrative permit fee $400.00 per foot fee - over 100 feet $1.00 Service Drop meeting conditions Not parallel to right-of way at leats 10' from any city facility or utility, less than 1' wide, and depth in accord with law or, if none, industry standard No charge STREET ASSESSMENTS Residential/Single Family/Duplex, per dwelling unit on local street $7,200.00 $7,500.00 Multi Unit Residential (more than 2 dwelling units) on local street 79.35/ft $82.52/ft Residential/Single Family/Duplex, per dwelling unit on state aid street $1,800.00 $1,875.00 Multi Unit Residential (more than 2 dwelling units) on state aid street 84.98/ft $88.38/ft Other Zonings, Local Streets 100.16/ft $104.17/ft Other Zonings, State Aid Streets 103.18/ft $107.30/ft Administrative Fee for Driveways and/or Sanitary Sewer repairs $250/maximum Seven percent of total or maximum fee -whichever lessor) Low Income Level for Senior/Retired due to Disability Deferral 2018 HUD Limits 2019 HUD Limits STORMWATER MANAGEMENT Projects that do not require watershed review - No post construction BMPs $100.00 New Home Construction - no watershed review - No post construction BMPs $300.00 Projects that require watershed review or require Post Construction BMPs $500.00 TREE AND LANDSCAPE PERMIT Single Family Residential $150.00 All Other Projects $400.00 UTILITY PERMITS Water Meter Permit $100.00 Water Tapping Permit $100.00 Water Cut-off Permit $100.00 Sewer Permit (connection)$100.00 Sewer Repair Permit $100.00 Sewer Cut-off Permit $100.00 When a project does not follow the above assessment rates, the rates will be approved at the time of the project hearing. 10 ENGINEERING ADOPTED FEE PROPOSED 2020 FEE Sewer & Water Permits for Commercial Projects (Fee Based on Plumbing Value and if there is a Plan the Plan Review Fee would be 65% of the Fee) State Surcharge - each permit $1.00 WETLAND MANAGEMENT (PLUS PROFESSIONAL FEES IF NECESSARY)$150.00 WIRELESS AESTHETICS Collocation Agreement Rent to collocate on the City structure Up to $150.00 Maintenance associated with the collocation $25.00 Electrical Service-monthly Per radio node less than or equal to 100 maximum watts $73.00 Per radio node over 100 maximum watts $182.00 Or actual costs of electricity, if the actual exceed the foregoing 11 FIRE DEPARTMENT ADOPTED FEE PROPOSED 2020 FEE CARSEAT INSTALLATIONS/INSPECTIONS Non-resident $20.00 Each additional $10.00 EQUIPMENT CHARGE PER HOUR Fire Engine (includes personnel)$250.00 Fire Rescue Truck (includes personnel)$250.00 Fire Aerial Truck (includes personnel)$350.00 Police and Fire Rescue Truck (includes personnel)$250.00 Fire Boat (includes personnel)$75.00 Fire ATV (includes personnel)$75.00 Fire Life Safety Trailer (includes personnel)$200.00 Gas Lines, construction damage with Fire Department Response $250.00 FIRE COMMERCIAL COOKING VENTILATION SYSTEMS (HOOD AND DUCT CLEANING) Inspection $75.00 Re-inspection $150.00 FIRE SPRINKLER, FIRE ALARMS & SPECIAL FIRE SUPPRESSION SYSTEMS New Installation or Alteration of Existing Ref. MN Rules 1300.0160,subd. 1, subd. 2 Total valuation based on below fee schedule: FEES 0 $500 $50.00 501 $2,000 $50.00 for the first $500 plus $3.05 for each additional $100 or fraction thereof, up to and including $2000 2,001 $25,000 $95.75 for the first 2,000 plus $14.00 for each additional $1,000 or fraction thereof, up to and including $25,000 25,001 $50,000 $417.75 for the first $25,000 plus $10.95 for each additional $1,000 or fraction thereof, up to and including $50,000 50,001 $100,000 $691.50 for the first $50,000 plus$ $7.34 for each additional $1,000 or fraction thereof, up to and including $100,000 100,001 $500,000 $1,058.50 for the first $100,000 plus $6.00 for each additional 1,000 or fraction thereof, up to and including $500,000 500,001 $1,000,000 $3,458.50 for the first $500,000 plus $5.00 for each additional 1,000 or fraction thereof, up to and including $1,000,000 1,000,001 and up $5,958.50 for the first $1,000,000 plus $4.00 for each additional 1,000 or fraction thereof FIREWORKS/PYROTECHNIC SPECIAL EFFECTS Permit fee includes required rental of fire engine and crew for one hour stand-by at display $350.00 Valuation FROM TO 12 FIRE DEPARTMENT ADOPTED FEE PROPOSED 2020 FEE FLOOR DRY (ACCIDENTS)per bag $20.00 FUEL TANKS - PETROLEUM/COMPRESS GAS TANKS FUEL TANKS Permanent above/underground Use Fire Sprinkler, Fire Alarms & Special Fire Suppression Systems Table Above Fuel, Compressed Gasses, Hazardous Materials, and Associated Appliances & Piping Temporary LP Tank/Fuel Tank per tank $50.00 PERSONNEL (OVERTIME WOULD BE 1.5 X RATE) Full-time Fire Personnel (scheduled time after hours -minimum 2 hours)$75/hr Paid On-Call Fire Personnel $35/hr TENT/CANOPY INSPECTIONS - REQUIRED FOR TENT EXCEEDING 400 SQ FT AND $50.00 canopies exceeding 700 sq ft (per site) each additional tent and/or canopy (per site)$25.00 WEED ERADICATION/LAWN MOWING - PER HOUR (SEE MINIMUMS) Occupied/unoccupied residential/commercial property - 3 hour minimum $125/hr SECOND OR MORE VIOLATIONS IN ONE SEASON Occupied/unoccupied residential/commercial property - 3 hour minimum $250/hr 13 INSPECTIONS DEPARTMENT ADOPTED FEE PROPOSED 2020 FEE If the work has been started the Building Official shall assess additional fees as permitted by code WORKING WITHOUT A PERMIT - INVESTIGATION FEE The greater of $100 or 25% of the permit fee, not to exceed $500. Fee not to exceed permit fee. ALL BUILDING PERMIT VALUATION DATA WILL BE BASED ON THE CURRENT INTERNATIONAL CODE COUNCIL ALL BUILDING PERMITS ARE BASED FEES FROM THE LMC/AMM RECOMMENDATION. www.goldenvalleymn.gov/permits/pdf/building-fees.pdf Plan Review Fee Due at time Plans are Submitted at City Discretion (no refund)65% of Fee WHEN APPLICABLE, A PLAN REVIEW FEE WILL BE ADDED TO BUILDING AND SITE PERMITS 65% of permit fee BUILDING PERMIT FEES BASED ON FEE SCHEDULE BELOW. Mandatory State Surcharge: per permit is a minimum of .50 and when a permit fee is over $1,000 in value the state surcharge is .0005 times the permit value. Surcharge is remitted to MN State Treasurer. Permit Cancellation Policy: 80% of the permit fee will be returned upon written notice of cancellation. If job has been started no refund will be made. BUILDING PLAN/STORAGE RETRIEVAL $50.00 BUILDING/FIRE/COMMERCIAL MECHANICAL PLAN REVIEW FEE - 65% OF THE PERMIT FEE (NO SURCHARGE) re-inspection fee $100.00 BUILDING PERMITS (Ref. MN Rules 1300.0160,subd. 1, subd. 2) Table 1 Total valuation based on below fee schedule: FEES 0 $1 $500 $50.00 501 $2,000 $50.00 for the first $500 plus $3.05 for each additional $100 or fraction thereof, up to and including $2000 2,001 $25,000 $95.75 for the first 2,000 plus $14.00 for each additional $1,000 or fraction thereof, up to and including $25,000 25,001 $50,000 $417.75 for the first $25,000 plus $10.95 for each additional $1,000 or fraction thereof, up to and including $50,000 50,001 $100,000 $691.50 for the first $50,000 plus$ $7.34 for each additional $1,000 or fraction thereof, up to and including $100,000 100,001 $500,000 $1,058.50 for the first $100,000 plus $6.00 for each additional $1,000 or fraction thereof, up to and including $500,000 500,001 $1,000,000 $3,458.50 for the first $500,000 plus $5.00 for each additional $1,000 or fraction thereof, up to and including $1,000,000 1,000,001 and up $5,958.50 for the first $1,000,000 plus $4.00 for each additional 1,000 or fraction thereof The fee will be charged by the Building Official or designee where additional time and expense is incurred by the City to achieve code compliance. Valuation FROM TO 14 INSPECTIONS DEPARTMENT ADOPTED FEE PROPOSED 2020 FEE CONTRACTORS 1-Apr $75.00 ELECTRICAL State Surcharge - each permit $1.00 All Services new, replace or repair Minimum Fee Minimum permit fee is $40.00 plus $1.00 State surcharge. This is for one inspection only. Minimum fee for rough-in inspection and final is $80.00 plus $1.00 State surcharge. Maximum Fee Maximum fee for single family dwelling or townhouse not over 200 Amps is $175.00 plus $1.00 State surcharge. Maximum of 3 inspections. 0 to 300 Amp 50.00 400 Amp 58.00 500 Amp 72.00 600 Amp 86.00 800 Amp 114.00 1000 Amp 142.00 1100 Amp 156.00 1200 Amp 170.00 Add $14.00 for each additional 100 Amps. Circuits and Feeders 0 to 30 Amp 8.00 31 to 100 Amp 10.00 101 to 200 Amp 15.00 300 Amp 20.00 400 Amp 25.00 500 Amp 30.00 600 Amp 35.00 700 Amp 40.00 Add $5.00 for each additional 100 Amps. Apartment Buildings per unit $80.00 Reinspection fee $40.00 Remote Control and Signal Circuits per device $0.75 Retro Fit Lighting per fixture $0.65 There is a $2 per circuit charge for replacing circuits that are disconnected in the old service panel and reconnected to the new panel. The inspection fee for the installation, addition, alteration or repair of each circuit, feeder, feeder tap or set of transformer secondary conductors: Fee per unit of an apartment or condominium complex. This does not cover service and house wiring. Heating, Ventilation, Air Conditioning and Refrigeration 15 INSPECTIONS DEPARTMENT ADOPTED FEE PROPOSED 2020 FEE Saver Switch $35.00 Service Replacement $100.00 Sign Transformer per transformer $8.00 Solar PV Installation Per Minnesota Solar PV System Fee Chart Street Lights and parking lot lights per each standard $4.00 SubPanel Replacement $40.00 Swimming Pool includes maximum 2 inspections $80.00 Traffic Signals per each standard $7.00 Transformers and Generators up to 10 KVA $10.00 11 - 74 KVA $40.00 75 - 299 KVA $60.00 over 300 KVA $150.00 includes up to 10 circuits and 2 inspections $80.00 Accessory Structures per panel $50.00 per circuit $8.00 MECHANICAL: HVAC, GAS PIPING, REFRIGERATION AND FIREPLACE Includes all types of fireplaces - masonry, gas, gas log, gas insert, etc. Value Permit charge 0 $999 $50.00 1,001 $5,000 $75.00 + 2.60% 5,001 $10,000 $179.00 + 2.15% 10,001 $25,000 $286.50 + 1.85% 25,001 $50,000 $534.00 + 1.65% 50,001 and up $946.50 + 1.30% PLUMBING AND PIPING FIXTURES Includes hydraulic sewer valves, rain water leaders, and alteration to existing systems. Value Permit charge 0 $999 $50.00 1,001 $5,000 $75.00 + 2.60% 5,001 $10,000 $179.00 + 2.15% 10,001 $25,000 $286.50 + 1.85% 25,001 $50,000 $534.00 + 1.65% 50,001 and up $946.50 + 1.30% Additons, Remodels or Basement Finishes 16 INSPECTIONS DEPARTMENT ADOPTED FEE PROPOSED 2020 FEE ELECTRONIC DOCUMENT FEE Based on Permit Fee $0.03 HOUSE/BUILDING Moving $500.00 Demolition $500.00 PERMIT CANCELLATION Request must be made within 180 days of permit issue date. No work shall have occurred.80% of permit fee PERMITS EXPIRED(OVER 180 DAYS) Fee determined by Building Official based on permit valuation Site visit to review work associated with expired permit $75.00 SEWER ACCESS CHARGE (SAC) -CITY per unit $650.00 SIGN PERMIT Base fee $50.00 Area fee (per sq ft of sign area)+3.00/sq ft Plan Review (Pylon and Monument Signs)$40.00 Temporary Sign $50.00 Special Temporary Sign Additional $50.00 Permanent Sign Footing Permit - if needed Per Table 1 Electrical Permit - if needed Per Table 1 TEMPORARY CERTIFICATE OF OCCUPANCY Partial Occupancy Permit Administrative fee $300.00 Partial Certificate of Occupancy Administrative fee $100.00 Temporary Certificate of Occupancy Administrative fee $100.00 Administrative fee $200.00 Penalty for expired Temporary Certificate of Occupancy $300.00 WATER ACCESS CHARGE (WAC) -CITY per unit $1,700.00 SAC Charges shall be based on the Residential Equivalent Connection Units (REC) resulting from the use of the City Water/Sewer systems. The REC shall equal the number of SAC Units determined under the SAC Determination to which the building permit relates. WAC Charges shall be based on the Residential Equivalent Connection Units (REC) resulting from the use of the City Water/Sewer systems. The REC shall equal the number of SAC Units determined under the SAC Determination to which the building permit relates. Extension of Temporary Certificate of Occupancy No surcharge or plan review fees will be returned (includes the fees for stormwater management, right-of-way ROW) and tree preservation permits). 17 PLANNING DEPARTMENT ADOPTED FEE PROPOSED 2020 FEE EASEMENT VACATION (EACH REQUEST)$500.00 RECORD REAL ESTATE ITEMS Easements, CUP, PUDs, Development Agreements, Simplifile Hennepin County fee CONDITIONAL USE ITEMS Conditional Use Permit $400.00 Amendment to Conditional Use Permit $300.00 Extension $125.00 FUTURE LAND USE MAP AMENDMENT $1,000.00 PARK DEDICATION FEES Minnesota Statute 462.358 6% of Land Value PLANNED UNIT DEVELOPMENT Preliminary Design PUD Plan $1,000.00 Final PUD Plan of Development $1,000.00 Extension $150.00 PLANNED UNIT DEVELOPMENT - MAJOR AMENDMENT $500.00 PLANNED UNIT DEVELOPMENT - MINOR AMENDMENT $250.00 PLANNED UNIT DEVELOPMENT - ADMINISTRATIVE AMENDMENT $100.00 SUBDIVISION $400.00 Extension to Submit Final Plat $150.00 SUBDIVISION - MINOR $250.00 Extension to Submit Final Plat $150.00 TAX PARCEL DIVISION $100.00 TEMPORARY RETAIL SALES for each sale, up to five days $150.00 18 PLANNING DEPARTMENT ADOPTED FEE PROPOSED 2020 FEE VARIANCE FROM ZONING CODE Single-Family Residential Zoning District $200.00 All other Zoning Districts $300.00 Extension $150.00 ZONING EXAMINATION LETTER $100.00 ZONING MAP AMENDMENT $500.00 19 POLICE DEPARTMENT ADOPTED FEE PROPOSED 2020 FEE ALARM SYSTEM - FALSE ALARMS (12 month period beginning March 1 of each year upon given notice) 1-3 false alarms $0.00 4-10 false alarms $100.00 11-15 false alarms $150.00 16 or more false alarms $250.00 ANIMAL CONTROL Impound Fee for dogs $50.00 Boarding Fee for dogs and cats per day (7 day maximum)$20.00 Dangerous Dog License $250.00 EQUIPMENT CHARGE PER HOUR Police Rescue Truck (includes personnel)$250.00 Squad Car (includes personnel)$100.00 FINGERPRINTING Golden Valley Resident $10.00 Anyone employed in Golden Valley $25.00 Additional Card $5.00 FORFEITED DWI VEHICLE ADMINISTRATIVE FEE $1,000.00 NUISANCE SERVICE CALL FEE (AFTER THREE CALLS)$250.00 PERSONNEL (OVERTIME WOULD BE 1.5 X RATE)$75.00/hr $85.00/hr Off Duty Police Officer (minimum applies as determined by City Manager/designee) 20 PUBLIC UTILITIES ADOPTED FEE PROPOSED 2020 FEE RESIDENTIAL UTILITY RATES - QUARTERLY BILLING includes all residential classes except those classified as apartments) Inspection Fee for Fire lines $6.00 Penalties (for late payment)10% Sanitary Sewer (in 1000 gallons) Residential (per dwelling unit) (Flat Rate)- 5 and under units-winter qtr consumption $71.13 $76.26 Residential (per dwelling unit) (Flat Rate) - 6-15 units-winter qtr consumption $76.81 $79.11 Residential (per dwelling unit) (Flat Rate) - 16-19 units-winter qtr consumption $84.48 $87.01 Residential (per dwelling unit) (Flat Rate) - 20-25 units-winter qtr consumption $96.31 $99.20 Residential (per dwelling unit) (Flat Rate) - 26-39 units-winter qtr consumption $126.18 $129.97 Residential (per dwelling unit) (Flat Rate) - 40-59 units-winter qtr consumption $145.31 $149.67 Residential (per dwelling unit) (Flat Rate) - 60-79 units-winter qtr consumption $154.23 $158.86 Residential (per dwelling unit) (Flat Rate)- 80 to 99 units-winter qtr consumption $176.73 $182.03 Residential (per dwelling unit) (Flat Rate)- 100 and over units-winter qtr consumption $209.74 $216.03 Recycling Residential curbside (per unit)$15.00 $16.00 Storm Sewer Utility Rate Charge for a Residential Equivalent Factor of 1.00 $72.00 $75.00 Each single family residential property is considered to be 1/3 of an acre. Street Lights Ornamental (per unit)$12.06 $12.42 Overhead (per unit)$8.31 $8.56 Water Minimum fee, includes up to 1,000 gallons of flow $15.00 $19.50 Water meters up to and including 1"$15.00 $19.50 Water meters over 1" and including 2"$99.99 $104.79 Water meters over 2" and including 4"$139.89 $144.39 Water meters over 4"$178.26 $182.76 Above 1,000 gallons of flow per quarter up to 79,000 (per 1,000 gallons)$6.45 $6.60 80,000 gallons and over of flow per quarter (per 1,000 gallons)$6.48 $6.68 Emergency WaterSupplyper1000gallons $0.30 Water ConnectionFeeStateCharge for each water hookup $1.59 $2.43 Irrigation Accounts (All) - Monthly Billing Minimum fee, includes up to 1,000 gallons of flow $15.00 $19.50 Water rate per 1000 gallons $6.48 $6.68 All apartment buildings over 50 units will be billed monthly beginning April 1, 2018 21 PUBLIC UTILITIES ADOPTED FEE PROPOSED 2020 FEE COMMERCIAL & INDUSTRIAL UTILITY RATES - MONTHLY BILLING Inspection Fee for Fire lines $2.00 Penalties (for late payment on monthly billings)5% Sanitary Sewer Water meters up to and including 1"$12.99 $13.38 Water meters over 1" and including 2"$33.33 $34.33 Water meters over 2" and including 4"$46.63 $48.03 Water meters over 4"$59.42 $61.20 Based on per 1,000 gallons $5.45 $5.61 Note: Water Meter Flow is used to establish sewer flow unless a separate sewer flow meter has been established. Storm Sewer Utility Rate Charge per acre for property X Residential Equivalency Factor (REF)$72.00 $75.00 Street Lights Ornamental (per unit)$4.02 $4.14 Overhead (per unit)$2.77 $2.85 Water Connection Fee - State charge for each water hookup - (January 1)$0.53 $0.81 Water Usage: Minimum fee, includes up to 1,000 gallons of flow $15.00 $19.50 Water meters up to and including 1"$15.00 $19.50 Water meters over 1" and including 2"$33.33 $37.83 Water meters over 2" and including 4"$46.63 $51.23 Water meters over 4"$59.42 $63.92 Water rate per 1000 gallons $6.48 $6.68 Emergency WaterSupplyper1000gallons $0.30 OTHER UTILITY FEES Driveway Covers - Replace $150.00 Hydrant Maintenance (Private) Materials, parts, labor Actual Cost + 20% admin Hydrant Meter Rental Residential (per day + consumption)$2.00 Commercial (per day + consumption)$5.00 Commercial (rate per day after 60 days + consumption)$10.00 Deposit (residential)$300.00 Deposit (commercial)$1,750.00 Repair Parts cost +20% Meter Read - Manual Read of Water/Sewer Meter/Upgrade-4th Letter $100.00 22 PUBLIC UTILITIES ADOPTED FEE PROPOSED 2020 FEE Meter Testing (to be returned if meter is in error of 5% or more of read)$50.00 Sanitary Sewer Inspections and Compliance Fees Ordinance No. 352 Noncompliant discharge into sanitary sewer(or refuse inspection) Single Family Residential $500/month Non Single Family Residential $1,000/month Application fee for noncompliant winter discharge into sanitary sewer per month $250.00 Application fee for certificate of sewer regulations compliance Single Family Residential (R-1 or R-2), per structure $250.00 Non Single Family Residential (all other structures), per structure $750.00 Video Review Residential video record completed by private licensed plumber $100.00 Non-residential video record completed by private licensed plumber $375.00 Sump Pump Inspection $50.00 Water Meter and Parts (All)At cost +20% Water on/off per each event business day)$25.00 after hours)$175.00 23 PARK & RECREATION ADOPTED FEE PROPOSED 2020 FEE ACTIVITIES Rates/Fees are printed in Recreation Brochures (Spring/Summer, Fall, Winter) Adult Activities Adult Individual Athletics/Fitness $20.00-$100.00 Adult Programs $1.00-$150.00 Adult Sports League Cancelation Fee $40.00 Adult Trips/Events $5.00-$75.00 Kickball League $125.00-$175.00 Open Gyms Drop-in fee $5.00 10-time Punch Pass $40.00 Soccer League - Co-Rec $425.00-$550.00 Softball Leagues - Fall $400.00-$500.00 Softball Leagues - Spring/Summer $800.00-$900.00 Volleyball League $150.00-$300.00 Senior Programs / Activities Craft/Art Classes $6.50-$70.00 Membership Dues $6.00-$50.00 Presentation/Discussion Groups $1.00-$5.00 Special Events $4.00-$40.00 Trips - Extended 2-6 Days 250.00- 1,200.00 250.00- 1,500.00 Trips - One Day $8.00-$95.00 Youth Activities Youth Athletics $20.00-$150.00 Youth Programs $5.00-$175.00 Youth Trips/Events $5.00-$100.00 $0.00-$100.00 BACKYARD INDOOR PLAYGROUND Daily Rates Resident $4.50 Non-Resident $5.50 Socks $2.00 10 Punch Pass - Resident $35.00 10 Punch Pass - Non-Resident $45.00 24 PARK & RECREATION ADOPTED FEE PROPOSED 2020 FEE Group Rates Pre-reservation required; Ratio of 10:1 youth/adult; 1 payment only Groups of 15 kids or more, max 50, includes use of a party room whenavailableperchild $4.50 Party Rates Includes 2 hours party room and 10 indoor playground wristbands Resident $100.00 Non-Resident $120.00 Picnic Packages Three One SIx Grill will provide food package options for party groups. Private Backyard Indoor Playground Rental Includes 2 hours of exclusive use and 2 party rooms Resident $250.00 Non-Resident $280.00 Additional hour $100.00 OTHER PARK & RECREATION FEES Athletic Field Resident - no attendent per hour / per field (min 2 hrs)$25.00 Resident - with attendent per hour / per field (min 2 hrs)$35.00 Non Resident - no attendent per hour / per field (min 2 hrs)$35.00 Non Resident - with attendent per hour / per field (min 2 hrs)$45.00 W/Lights(Requires attendent)per hour / per field $10.00 All day tournament Resident per field / per day $150.00 Non-resident per field / per day $250.00 Field Attendant per hour $15.00 Beer/Wine Permit (only with Picnic Shelter rental)$50.00 Davis Community Center Gym Resident per hour $25.00 $30.00 Non-resident per hour $30.00 $40.00 Entire Park Use -- plus facility rental fees (up to 12 hours) Resident $300.00 extra wristbands may be purchased for daily rate (max of 20 people total per party room) 25 PARK & RECREATION ADOPTED FEE PROPOSED 2020 FEE Non-resident $450.00 Equipment Use Fee Permit Inflatable, climbing wall, zipline, etc Each $25.00 Gazebo/Sun Shelter Resident per hour $50.00 Non-resident per hour $75.00 Hockey Rink (outdoor) Resident per hour $25.00 Non-resident per hour $35.00 Park Shelter Building Resident per hour (minimum 2 hrs)$35.00 Non-resident per hour (minimum 2 hrs)$40.00 Key Deposit refundable when returned $25.00 Picnic Shelter Damage Deposit $250.00 Picnic Shelter Rental Small Park Shelter (up to 50 people) Resident $115.00 Non-resident $130.00 Large Park Shelter (up to 100 people) Resident $150.00 Non-resident $170.00 Professional Photo/Video Use of Specific Park Area (plus facility rental fees) Resident per hour $100.00 Non-resident per hour $125.00 Sand Volleyball Court (per court) Resident per hour $20.00 Non-resident per hour $25.00 Sand Volleyball Court-Brookview (2 courts) Resident per hour $30.00 Non-resident per hour $35.00 Brookview only - Available from 11:00 am-dusk and only in conjunction with Large Shelter Rental for wedding ceremonies 26 PARK & RECREATION ADOPTED FEE PROPOSED 2020 FEE Tennis or Pickleball Court Tournament - per day/per court Resident $50.00 Non-resident $60.00 Court/hr Resident per hour $6.00 Non-resident per hour $8.00 Youth Athletic Association Player Field Maintenance Fee Resident & Non-resident per person $8.00-$12.00 Organization Field Maintenance Fee per organization 100.00- 2,000.00 27 BROOKVIEW COMMUNITY CENTER - 2019 Adopted 2020 PROPOSED DEPOSIT Deposit is due at time of booking to hold reservation. 500 refundable damage deposit is due 30 days prior to rental. All rentals include:Set-up / take-down and AV equipment RESIDENT (Live or work in GV, book 18 months 24 months in advance for 14 hr, 12 months in advance for hourly) Room Room Capacity Hours Sweeney Lake Conference Rm -12 max 2 hr min North 50 – seated chairs only 2 hr min South Waiting for #2 hr min Both Waiting for #2 hr min Twin Lake Rm -4 No minimum Fossil Creek Rm -4 No minimum Hideout -20 – seated at tables 2 hr min Clubhouse -20 – seated at tables 2 hr min Room Option Capacity Hours Mon-Thur Fri Sat Sun Mon-Thur Fri Sat Sun Bassett Creek 212 (200 @ rounds, 12 head table)14 hr (10 am-12 am)$1100 + tx $1600 + tx $1000 + tx 1200+tax Banquet Room 228 (216 @ rectangles, 12 head table)Hourly (2 hr min)$ 90/hr + tax 100/hr + tax 140/hr + tax 90/hr + tax North 84 (72 at rounds & 12 at head table)Hourly (2 hr min)$ 55/hr + tax 60/hr + tax 80/hr + tax 55/hr + tax South 72 (Classrm/presentation at rectangles)Hourly (2 hr min)$ 55/hr + tax 60/hr + tax 80/hr + tax 55/hr + tax Lilac Room -No minimum Wirth Lake Rm - Waiting for #2 hr min Rice Lake Conference Rm -12 max 2 hr min Evergreen Deck -104 – seated chairs only 2 hr min 204 – seated chairs only 2 hr min Deck Event/Ceremony Fee set-up of chairs, equipment, basic PA) ALL ROOMS Special Set-up/Clean-up Varies based on needs NON-RESIDENT (Book 16 months in advance for 14 hr, 10 months in advance for hourly) Room Option Capacity Hours Sweeney Lake Conference Rm -12 max 2 hr min North 50 – seated chairs only 2 hr min South Waiting for #2 hr min Both Waiting for #2 hr min Twin Lake Rm -4 No minimum Fossil Creek Rm -4 No minimum Hideout -20 – seated at tables 2 hr min Clubhouse -20 – seated at tables 2 hr min Room Option Capacity Hours Mon-Fri Sat Sun Mon-Fri Sat Sun Bassett Creek 212 (200 @ rounds, 12 head table)14 hr (10 am-12 am)$1300 + tx $1800 + tx $1200 + tx 1400+tax Banquet Room 228 (216 @ rectangles, 12 head table)Hourly (2 hr min)$120/hr + $130/hr + $170/hr + $120/hr + North 84 (72 at rounds & 12 at head table)Hourly (2 hr min)$70/hr + $75/hr + $95/hr + $70/hr + South 72 (Classrm/presentation at rectangles)Hourly (2 hr min)$70/hr + $75/hr + $95/hr + $70/hr + Lilac Room -No minimum Wirth Lake Rm - Waiting for #2 hr min Rice Lake Conference Rm -12 max 2 hr min Evergreen Deck -104 – seated chairs only 2 hr min 204 – seated chairs only 2 hr min Deck Event/Ceremony Fee set-up of chairs, equipment, basic PA) ALL ROOMS Special Set-up/Clean-up Varies based on needs Banquet/Event Attendant $30/hour Drapery $200-$500 14 hour rental includes: Bassett Creek Banquet Room, Lilac Room, Rice Lake Conference Room, catering kitchen, private (Fairway) deck. Lower Level Mon-Sun 25/hr + tax Valley Room 45/hr + tax 45/hr + tax 75/hr + tax 15/hr + tax 15/hr + tax 25/hr 25/hr Upper Level Full Rm 15/hr + tax 50/hr + tax 25/hr + tax 60/hr + tax 60/hr + tax 200 50 minimum Fairway Deck - Lower Level Mon-Sun 35/hr + tax Valley Room 55/hr + tax 55/hr + tax 90/hr + tax 15/hr + tax 15/hr + tax 35/hr + tax 35/hr + tax Upper Level Full Rm 15/hr + tax 60/hr + tax 35/hr + tax 75/hr + tax 75/hr + tax 220 50 minimum Fairway Deck - Mon-Sun Mon-Sun 28 BROOKVIEW GOLF COURSE / 316 BAR & GRILL ADOPTED FEE PROPOSED 2020 FEE REGULATION COURSE 18 Hole $39.00 18 Hole Club Member $32.00 18 Hole Senior Club Member (Age 60+)$28.00 18 Hole Senior (Age 60+)$32.00 18 Hole League $39.00 18 Tournament $39.00 9 Hole $21.00 9 Hole Club Member $18.00 9 Hole Senior Club Member (Age 60+)$16.50 9 Hole Senior (Age 60+)$18.00 9 Hole League $21.00 9 Hole Tournament $21.00 2nd Nine $18.00 2nd Nine Club Member $14.00 Sunrise/Sunset Rate $18.00 Twilight $22.00 Twilight Club Member $18.00 Junior Rate Club Member $23.50/$13.50 Junior Rate $25.50/$15.50 PAR 3 COURSE 9 Hole $13.00 9 Hole Club Member $9.50 9 Hole Senior Club Member (Age 60+)$8.50 9 Hole Senior (Age 60+)$10.00 9 Hole League $13.00 9 Hole Tournament $13.00 9 Hole Junior Rate Club Member $8.50 9 Hole Junior $10.00 2nd 9 Par 3 $8.00 Junior Par 3 Season Pass $90.00 CART RATES 18 Hole Power Cart $34.00 18 Hole Tournament Cart $34.00 18 Hole Club Member Cart $28.00 9 Hole Tournament Cart $22.00 9 Hole Power Cart $22.00 29 9 Hole Par 3 Power Cart $18.00 Pull Cart/Regulation Course $5.00 Pull Cart/Par 3 Course $4.00 Trailer fee/Use of personal power cart $15.00/$10.00 CLUB MEMBER CARDS Resident Adult $80.00 Non-resident Adult $120.00 Resident Senior (Age 60+)$50.00 Non-resident Senior (Age 60+)$85.00 Resident Junior (17 yrs & under)$40.00 Non-resident Junior (17 yrs & under)$45.00 Par 3 $35.00 CLUB RENTALS 18 Hole full rental - Regulation $20.00/$30.00 9 Hole full rental - Regulation $10.00/$15.00 9 hole Par 3 half rental $10.00 CURLING Curling League $125.00-$175.00 Curling Rink Rental (1 hour)$15.00 DRIVING RANGE Small Bucket $4.00 Medium Bucket $6.00 Large Bucket $8.00 LAWN BOWLING League Fee M-Th evenings (7 week league)$400.00 Single Rink Rental - Resident and Club Member $25.00/hour Single Rink Rental - Non-resident $30.00/hour Private Rental of Four Rinks $120.00/hour Private Rental of Eight Rinks - exclusive use $240.00/hour Summer Kids Leagues $30.00 Senior Leagues $5.00 Rental of Green / 4 courts for corporate golf outings $120.00/hour Game Official For Private Rentals / Events $30.00/hour Game Equipment Use For Leagues & Rentals included 30 LESSONS Adult Group $99.00 $95.00-$200.00 Junior Camp $150.00-$320.00 Junior Group $65.00 $65.00-$150.00 LOCKER RENTAL Season $100.00 $120.00 Daily $5.00 Towel fee $2.00 MISCELLANEOUS FEES USGA Handicap Service MGA Non-Club Member $45.00 Club Member Annual $30.00 Comedy Shows $20.00-$50.00 No Show Fee FULL FEE THREE ONE SIX BAR + GRILL Market Rate - All products and services 31 DONATIONS ADOPTED FEE PROPOSED 2020 FEE Commemorative Bench with Engrave Plaque- City Park or Open Area $2,300.00 Tree Donation- City Park or Open Area $350.00 Brookview Golf Course: Commemorative Bench with Engraved Plaque $750.00 Tree Donation $350.00 32