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2023-02-28 CC Meeting MinutesMOUND CITY COUNCIL MINUTES February 28, 2023 The City Council of the City of Mound, Hennepin County, Minnesota, met in regular session on Tuesday, February 28, 2023 at 7:00 p.m. in the Council Chambers in the Centennial Building. Members present: Mayor Jason Holt, Council Members, Sherrie Pugh, Paula Larson, Kathy McEnaney and Kevin Castellano. Members absent: None Others present: City Manager Eric Hoversten, City Clerk Kevin Kelly, City Attorney Scott Landsman. Consent agenda: All items listed under the Consent Agenda are considered to be routine in nature by the Council. There will be no separate discussion on these items unless a Councilmember or citizen so requests, in which event it will be removed from the Consent Agenda and considered in normal sequence. 1. Open meeting Mayor Holt called the meeting to order at 7:00 p.m. 2. Pledge of Allegiance 3. Approve agenda Hoversten said the agenda has been amended to strike item No. 6 the appearance of Judge Toddrick Barnett. Hoversten said Judge Barnett has been rescheduled to attend the March 28cn Council meeting. MOTION by Pugh, seconded by Castellano, to approve the amended agenda. All voted in favor. Motion carried. 4. Consent agenda Castellano requested Item 4A be removed for discussion. MOTION by Larson, seconded by Pugh, to approve the amended consent agenda. All voted in favor. Motion carried. A. (Removed) B. Approve minutes: 02-14-23 Regular Meeting C. RESOLUTION NO. 23-25: RESOLUTION APPROVING 2020 1/1 GRANT PROGRAM FUNDS REIMBURSEMENT PARTICIPATION FROM METROPOLITAN COUNCIL ENVIRONMENTAL SERVICES REGARDING THE 2021 AND 2022 MANHOLE REHABILITATION PROJECTS D. Approve Public Works final pay request in the amount of $1,569.69 to Pipe Services for the 2022 Sewer Televising Project, PW 22-04 4. A. (Removed) Approve payment of claims in the amount of $299,515.31 Mound City Council Minutes — February 28, 2023 Castellano asked about the Marvin Trucking pay item. Hoversten said Marvin Trucking is a distribution company serving the liquor store to fill gaps when a specific product supply is low. Larson asked about the Minnesota Valley Testing payment to which Hoversten said is the fee for monthly chlorine testing. Hoversten said there are a dozen different testing areas in the City water supply from the nearest to farthest areas of water service to make sure the chlorine level is balanced. Larson asked if there is a monthly Manganese test which Hoversten said it was only tested once by the Minnesota Department of Health. MOTION by Castellano, seconded by Pugh, to approve the payment of claims in the amount of $299,515.31. Upon roll call vote, all voted in favor. Motion carried. 5. Comments and suggestions from citizens present on any item not on the agenda. None were offered. 6. Removed 7. Instructions to staff regarding Delta-9 THC retail activities in Mound; lift moratorium, allow to expire, implement licensure, other Holt said on July 1st it became legal to sell up to 5 milligram servings of THC-9 to which the City put a moratorium in place on sales in the City. Holt said he talked to Chief Farniok of the Orono Police and the City of Spring Park has moved forward to allow sales of THC products and the cities of Maple Plain and Orono are in the process of doing so. Holt said he hasn't heard anything negative about allowing sales noting Chief Farniok expects the Minnesota legislature to expand THC legislation. Holt said the question is whether the City should allow the moratorium to expire on August 1 ot" or should the City regulate marijuana use now, whether the use of marijuana is made legal or not. Holt ask for discussion from the Council and added there is some interest from the public in THC sales being legal. Hoversten said the state has set an age limit of 21 for THC sales and the City could allow for an older minimum age to purchase, but might face a legal challenge for conflicting with statute language and further study would be necessary. Hoversten said the City cannot charge a local sales tax, but can charge for licensing in order to ensure that retailers comply with age limits, product display and maintain a license. Hoversten said the City could then pull the license and have predetermined fines for violations of licensing conditions. Hoversten said the other areas of regulation such as maximum 5mg per serving and packaging which looks like a cartoon or candy can be referred to Department of Pharmacy but is not regulated by Orono Police compliance checks. Hoversten said the City can leave the moratorium in place and wait for it to expire or lift the moratorium and follow state regulation. Hoversten said the other option could be to pass an ordinance which gives the City the authority to license this retail activity. Pugh asked if there is a limit to where the sales take place and to the number of retailers. Hoversten said cities are putting them in tobacco stores noting THC cannot be sold alongside of alcohol and licensure can determine what types of businesses can have licenses. Hoversten said the City of Maple Plain will only allow intoxicating THC sales in a tobacco store. Hoversten said Spring Park has Mound City Council Minutes — February 28, 2023 included allowing Back Channel Brewing to sell THC off -sale. Hoversten said there is a holistic health store owner in Mound who has approached the City about also selling THC and may be an appropriate retailer. Hoversten there used to be a CDB store in town and another one could come to town. Hoversten said to do nothing would not allow restricting THC sales to specific districts such as the City business districts. Hoversten added that regulations could be added that these sales aren't allowed by peddlers, no sales from tents or trucks and would allow sales only at brick and mortar businesses with a physical address. Hoversten said THC sales cannot be denied entirely in the City though the City can prohibit THC sales in home based occupations. Holt said if the State does make it legal does the city want to have any control over the sale of those products. Landsman said THC sales are legal now and will not go away and the law doesn't have regulations for the type of establishment where sales can take place, noting it could be in any establishment as there are no restrictions regarding distance from day cares or schools. Landsman said the way the statute was passed there are no controls in place. Landsman said there are Minnesota (MN) Senate and House bills being discussed in committee to have the state control the licensing of marijuana. Landsman said the City can start working on drafting guidance, noting if there is broadened legalization the City could still control sales at the City level through zoning or other avenues. Hoversten said if the Council does not want to regulate THC sales then it should lift the moratorium and wait for the legislature to act. Landsman said the City could modify the Maple Plain and Orono ordinances to create an ordinance specific to Mound with little effort. Landsman said the City moratorium is in place and there is enough time to customize the ordinance. Landsman said if the Council assumes the law is not going to change it would be helpful for staff to know where sales would be restricted in the City. Castellano asked what are the pros and cons to waiting or not waiting. Discussion took place on waiting on Council action until the moratorium ends or to lift the moratorium immediately and whether it is a disadvantage to waiting. Holt said people are saying the City should allow the sales now and it would be business friendly to open up the THC-Delta 9 sales. Hoversten said Council guidance would give staff authority to have controls and licensing protocol in place for retailers. Hoversten added that to wait to lift the moratorium and wait for state legislation would leave a short time line to put City regulations in place. Landsman said it won't take much work to implement an ordinance before the end of the state legislative session and there is talk in the legislature about allowing on -sale. Landsman said the City cannot be a dry town and the assumption is if the law stays in place, the City has licensing and control. Landsman said Council approval would be helpful for licensing and restricting where sales can occur and to have something ready at the lifting of the moratorium. Landman said no matter what legislative change happens, the City can be ready to go after passage by the MN legislature. Mound City Council Minutes — February 28, 2023 Pugh asked what are the costs to doing this. Hoversten said there could be compliance checks with any violation subject to a fine or penalty similar to alcohol compliance checks. Landsman said there can be licensing and administrative penalties for offences and progressive penalties for continued violation. Hoversten said it isn't clear the City has the authority to limit the number of retailers but the City can make THC sales a licensed activity. Landsman said the ordinance he proposes is to emulate the Tobacco 21 regulations as follows: 1st violation a $500 fine and a one -day loss of license. 211 violation within 36 months $100.00 fine, suspension of license for at least three days. • 3rd Violation within 36 months license is revoked for one year. • No vending machine sales. • No individual single sales or "loosies". • Product packaging rules must be followed. Larson said she would like to see some regulation and the City should have control to specifically regulate where sales take place noting she wants the City to keep the moratorium in place. McEnaney said she would like to see light regulation and to allow sales in places such as homeopathic shops. Hoversten said the moratorium can be taken out when the local control ordinance is approved by Council prior to the August 10t" expiration of the moratorium. McEnaney sad it makes sense to follow the work which has been done at other local cities. Hoversten said the Council can have code language in place in June which will be tailored to what types of business are allowed to sell, where they are allowed to be located in the City and then can be amended to fit whatever form state legislation takes. Hoversten said staff can have the draft ordinance ready for June and then the final product ready for approval in July. Hoversten said licensing can be done prior to state implementation. Pugh said she believes in modest regulation of THC sales, prohibition of retail next to a school and other regulation consistent with Tobacco 21. Pugh said she is concerned about the type of business which can sell. Hoversten said the City could anticipate what tolerable regulations are and what of types of businesses are allowed to sell THC. Landsman said vices are typically an area of regulation by cities and he suspects that THC products will be treated as similar vices which leans to government regulations. Landsman said the City should do the line drawing of where THC is sold so that it is not freely accessible to public. Castellano said THC sales should be regulated and not within 500 feet of a school and there should not be mobile sales or in places like a City park. Holt said the consensus of the Council is item number 3 on page 425 which provides staff guidance to "replace the moratorium with licensure requirement generally consistent with recommended model code to regulate and control local business activities." Mound City Council Minutes — February 28, 2023 Landsman asked the Council if they are okay with regulation similar to Tobacco 21 and where they will be allowed to be sold. Castellano says the tobacco law covers nearly all regulation the Council would like to see. Hoversten said the Council can anticipate there will be other retailers wanting to sell such as a CBD store, the homeopathic shop, tobacco shops and other retail which can be regulated to a specifically zoned area and require behind the counter sales only. Castellano said the Council is in agreement that sales are behind the counter and in the commercial district. Pugh asked about the former CBD store in Mound and if they were restricted. Hoversten said he thought they opened in anticipation of statute allowing intoxicating THC. Hoversten said the non - intoxicating CDB is in many different products and in many different retail shops with no regulation. Hoversten added THC-9 is not a FDA drug as it is looked at as a dietary, medicinal supplement. Hoversten read from the Spring Park regulations which allows retail establishments such as grocery stores, convenience stores, breweries and restaurants in the downtown business district with no sales out of residences. The Council and staff discussed the regulation to be more in line with Spring Park's regulation of THC. Larson said there should be no more roadblocks and would like to see this back before the Council soon. Holt said the City is losing out on businesses opening as is happening in neighboring cities. Landsman said he can work with the current law and come up with something so that it can be posted 10 days in advance to be ready by March 28th for Council review. MOTION by Pugh, to instruct City staff and the City Attorney to develop guidelines similar to Spring Park which includes only behind the counter sales in commercial districts similar to the Tobacco 21 regulations. Castellano seconded. All voted in favor. Motion carried. 8. Comments/Reports from Council Members: Council Member Pugh — Pugh said she testified at the State legislature for the agency on aging and attended the League of Minnesota Cities (LMC) Advanced Academy Training with officials from other cities. Council Member Larson — Larson said she and Holt attended the February 16th Drug Task Force (DTF) review which was very informative. Larson said the joint Planning Commission and Council Meeting took place on the 21 st and the Volunteer Appreciation Event last night had a very festive feel and was very nice. Council Member McEnaney — McEnaney said she also attend the LMC Elected Leaders events and felt the on-line course was plenty. McEnaney said other areas of the state are dealing with the same issues Mound is facing and it was good to know that we are not alone. McEnaney said she has interviewed two cities regarding their communications with two more to follow. McEnaney said she will provide a report to the Council at an upcoming meeting. Council Member Castellano — Castellano asked if the Liquor Store planned to do an instore promotion for the ninetieth anniversary of municipal liquor operations. Hoversten said the Liquor Store looks to the Rare Bottle Event and the Anniversary Sale in February as those events. Castellano said the Wayzata Liquor Store has a graph which shows the tax benefit the store provides. Castellano asked about the Grandview Apartment issues and Hoversten said the City Building Official wrote a letter to the property owner and the issues are being addressed. Hoversten said there has been no more Mound City Council Minutes — February 28, 2023 communication from Grandview residents. McEnaney said the person who was reporting on the Grandview issues has since moved out so that could be why there isn't more reporting going on. Mayor Holt — Holt said he attended the Drug Task Force meeting and listed statistics since 2003 to the present. Holt said the DTF has seen huge increases of Cocaine, Methamphetamine, Marijuana and Fentanyl being seized with $3.1 Million seized. Holt said there have been large increases in: • Search Warrants • Arrests • Guns seized with 34 guns already seized this year Holt said he attended the LMC — Advanced Academy and spent time with the Mayors of Rosemount, Mounds View and Apple Valley. Holt added the following: • Holt toured Scott Gates proposed restaurant site, noting work is on -going at Commerce Place • New Chiropractor (Health Source) opened with Dr. Chapman who moved from St. Bonifacius • Hand Made Studio Tattoo Shop opened and is booked out with clients and is bringing on new people and looking to add different lines of service • Volunteer Appreciation Event was great and heard positive feedback and thanked McEnaney • THC bill in legislature with limited language on local restrictions and asked the Council to contact Senator Morrison and Representative Meyers • Superintendent Kevin Borg held an input session on School District facilities regarding security enhancements, deferred maintenance, and a High School redesign, stating he invited Superintendent Borg to a future Council meeting since the open house at MWHS on March 14tn is a regular Council meeting night • HF 1857 bill would prohibit the sale of water in plastic containers is not a good idea • Holt said he and Hoversten will be testifying tomorrow at the Capitol regarding the bonding bill • Holt met with U.S. Representative Dean Phillips two weeks ago at the Phillips' District Area Mayors breakfast and advocated the need for the Mound water treatment plant Holt said the sign McEnaney made for the Volunteer Appreciation Event was excellent and asked if McEnaney could work with the Liquor Store on a sign regarding how the Liquor Store financially benefits the City. 9. Information/Miscellaneous A. Comments/reports from Council members/City Manager: Hoversten noted the following items: • March 211 rescheduled City Council Workshop Meeting • March 14 Council Meeting with Hennepin County Commissioner Kevin Anderson and the Westonka Historical Society Event preceding the meeting at 6:00 p.m. • Council photos previously taken by a professional photographer to the tune of $700 could be done in house. McEnaney said she could set a tri-pod up. Larson said in follow up to the previously mentioned DTF meeting, Orono Police Chief Farniok said that for every 100 homicides, there are over 400 drug deaths. Larson said this is the reality that youth are overdosing on Fentanyl. Pugh said it was suggested to not have flat surfaces in public restrooms to deter drug use. Everyone agreed it was nice to have the attorney present. B. Reports: Fire Department — January 2023 Mound City Council Minutes — February 28, 2023 Finance Department — January 2023 C. Minutes: D. Correspondence: Hennepin County HRA 10. Adjourn MOTION by Castellano, seconded by McEnaney, to adjourn at 8:51 p.m. All voted in favor. Motion carried. Mayor Jason R. Holt Attest: evin Kelly, Clerk