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2023.08.15 Work Session Packet 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov Posted: Aug. 11, 2023 City Council Work Session Agenda Tuesday, Aug. 15, 2023 6:30 p.m. Council Chambers/Zoom Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the work session of the Crystal City Council was held on Tuesday, Aug. 15, 2023, at ______ p.m. in the Council Chambers at City Hall, 4141 Douglas Dr. N., Crystal, MN and via Zoom. If the agenda items are not completed in time for the City Council meeting at 7 p.m., the work session will be continued and resumed immediately following the Economic Development Authority meeting. The public may attend the meeting via Zoom by connecting to it through one of the methods identified on the City Council Meeting Schedule for Tuesday, Aug. 15, 2023. I. Attendance Council members Staff ____ Adams ____ Bell ____ Budziszewski ____ Gilchrist ____ Cummings ____ Therres ____ Eidbo ____ Elholm ____ Kamish ____ Larson ____ Kiser ____ Ray ____ Onesirosan ____ Revering ____ Sutter ____ Serres II. Agenda The purpose of the work session is to discuss the following agenda items: 1. Cannabis regulations. 2. 2024 Utility Reconstruction survey results. 3. West Metro Fire-Rescue District quarterly update. 4. City Council liaison reports. * 5. City manager monthly check-in. 6. Constituent issues. * 7. New business. * 8. Announcements. * III. Adjournment The work session adjourned at ______ p.m. * Denotes no supporting information included in the packet. Auxiliary aids are available upon request to individuals with disabilities by calling the city clerk at (763) 531-1145 at least 96 hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529. CR205-30-894850.v1 Kennedy Troy J. Gilchrist 150 South Fifth Street Suite 700 Minneapolis MN 55402 (612) 337-9214 telephone (612) 337-9310 fax tgilchrist@kennedy-graven.com http://www.kennedy-graven.com & Graven C H A R T E R E D MEMORANDUM To: Crystal Mayor and City Council Adam Bell, City Manager From: Troy Gilchrist Date: August 10, 2023 (August 15, 2023 Meeting) Re: Licensing the Retail Sale of Edible Cannabinoid Products and Prohibiting Cannabis Product Use in Public Places --------------------------------------------------------------------------------------------------------------------- The City Council adopted a moratorium on the sale of edible cannabis products in response to the change in the law that went into effect on July 1, 2022. Since that time, staff has been reviewing the issue and, as many anticipated, the Legislature adopted a comprehensive cannabis bill during its 2023 session. The hope was that the Legislature would clarify some of the uncertainties around local regulation of edible cannabinoid products. It didn’t. Instead, the law maintained the status quo regarding the sale of edible cannabinoid products until the new Office of Cannabis Management is formed and begins licensing the sale of cannabis products. As a result, the City Council discussed its options to address the period between the expiration of its moratorium and the start of state licensing. The result of those discussions was to direct the preparation of a licensing ordinance that would apply to edible cannabinoid products until the state actually took over the licensing of such products. The proposed regular licensing ordinance is enclosed for a first reading. An interim ordinance imposing the licensing requirement is also enclosed to address the gap between the expiration of the 2022 moratorium and when the regular licensing ordinance goes into effect. Also included are the required summary resolutions and a resolution amending the fee schedule to establish fees for this new license. The City Council briefly discussed the authority the Legislature provided to prohibit the use of cannabis products in public places. Based on that discussion, and a review of the City Code, my recommendation is to consider adopting an interim ordinance prohibiting use in public places while staff studies the issue and brings back recommendations to the City Council that more comprehensively addresses the use of cannabis, tobacco, and liquor in public places. There was simply not enough time to conduct the level of review and have the staff discussions needed to prepare a comprehensive City Code amendment on this issue. CR205-30-894850.v1 Understanding that there are a lot of documents associated with the cannabis issue included in the packet, I have prepared a chart that briefly explains each to assist the City Council as it works through them. DOCUMENT DESCRIPTION PROPOSED ACTION Interim Ordinance Requiring a License and Imposing Regulations on the Retail Sale of Edible Cannabinoid Products This ordinance allows the licensing requirement and related regulations to go into effect immediately and will expire when the regular licensing ordinance goes into effect. Adopt as presented or as amended by the City Council. Resolution Approving Summary Language of the Interim Licensing Ordinance Approves summary language of the ordinance for publication. Adopt. Ordinance Requiring a License and Imposing Regulations on the Retail Sale of Edible Cannabinoid Products This is the regular licensing ordinance that requires two readings and 30 days before it goes into effect. Conduct first reading and direct any amendments the City Council may like to make for the second reading. Resolution Amending Fee Schedule for Edible Cannabinoid Licensing Amends the fee schedule to add the needed fees. Liquor licensing fees were used as a guide. Adopt as presented or as amended as these fees are needed for the interim licensing ordinance. Interim Ordinance Prohibiting the Use of Cannabis Products in Public Places Use of cannabis products became legal on Aug. 1st and this ordinance prohibits use in public places while a study is done and a code amendment is drafted. Adopt as presented or as amended by the City Council. Resolution Approving Summary Language of the Interim Ordinance Prohibiting Public Use Approves summary language of the ordinance for publication. Adopt. I will be happy to answer any questions the City Council may have regarding these documents. DRAFT INTERIM ORDINANCE 8-10-23 1 CR205-30-894685.v1 CITY OF CRYSTAL ORDINANCE NO. _____ AN INTERIM ORDINANCE REQUIRING A LICENSE AND IMPOSING REGULATIONS ON THE RETAIL SALE OF EDIBLE CANNABINOID PRODUCTS The City of Crystal ordains: Section 1. Purpose. The purpose of this ordinance is to establish licensing and sale regulations for the retail sale of edible cannabinoid products derived from hemp as provided in Minnesota Statutes, section 151.72. Section 2. Legislative Findings. The city council hereby finds and determines as follows: (a)In 2022, the Minnesota Legislature amended Minnesota Statutes, section 151.72 to expressly allow the sale of edible products that contain tetrahydrocannabinol (“THC”) without any associated licensing requirements. (b)The unexpected change in the law, the lack of licensing and other regulatory standards, and the concerns regarding the potential impacts of the sale of edible cannabinoid products resulted in the city council acting on August 16, 2022 to enact a one-year moratorium on the sale of THC Products. (c)Since that time, the city has studied the issue and anticipated the Legislature would provide additional guidance and regulation during the 2023 session on the sale of such products. While the Legislature did adopt a 321-page cannabis bill, it essentially maintained the status quo regarding the sale of edible cannabinoid products under Minnesota Statutes, section 151.72 until the newly established Office of Cannabis Management begins licensing cannabis businesses. (d)Because the Office of Cannabis Management is not likely to begin issuing licenses to sell lower-potency hemp products until early 2025, and faced with continuing uncertainties associated with the sale of edible cannabinoid products, the city council determines it is in the best interests of the city to require a license to sell such products and to impose related regulations until the Office of Cannabis Management assumes the licensing of cannabis businesses. (e)Section 3.065 of the Crystal City Charter expressly authorizes the City Council to adopt an interim ordinance imposing temporary regulations on a specific matter to protect the public health, safety, and welfare of the City’s residents. Such an interim ordinance can be adopted at the meeting at which it is introduced and can be made effective immediately. (f)The City Council is processing an ordinance to require a license and to impose regulations on businesses proposed to sell edible cannabinoid products. However, because the ordinance must go through two readings and wait 30 day after adoption before it goes into effect, the ordinance will not be in effect before the previously adopted moratorium expires. Therefore, the City Council desires to adopt temporary DRAFT INTERIM ORDINANCE 8-10-23 2 CR205-30-894685.v1 regulations on edible cannabinoid retailers while it further studies and considers the regulations as the regular ordinance works its way through the adoption process. Section 3. Definitions. For the purposes of this ordinance, the following terms shall have the meanings given them in this section. If a term is not defined herein, it shall have the meaning given it in Minnesota Statutes, section 151.72 or, if not defined therein, the definition given the term in the Crystal city code. Subd. 1. City. “City” means the City of Crystal, Minnesota. Subd. 2. Compliance Checks. “Compliance checks” means the system the city uses to investigate and ensure that those authorized to sell edible cannabinoid products are following and complying with the requirements of this ordinance and state laws. Compliance checks involve the use of compliance check minors, as authorized by this ordinance, who purchase or attempt to purchase edible cannabinoid 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 edible cannabinoid products. Subd. 3. Controlled Substance. “Controlled substance” has the meaning given the term in Minnesota Statutes, section 152.01, subdivision 4, as amended. Subd. 4. Crystal City Code. “Crystal city code” means the most current version of The Crystal City Code. Subd. 5. Delivery Sales. “Delivery sales” mean the sale of any edible cannabinoid product to any person for personal consumption and not for resale when the sale is conducted by any means other than an in-person, over-the-counter sales transaction in a retail establishment. Delivery sales include, but are not limited to, the sale of any edible cannabinoid products when the sale is conducted by telephone, other voice transmission, mail, the internet, or app-based service. Delivery sales include delivery by licensees or third parties by any means, including curbside pick- up. Subd. 6. Edible Cannabinoid Product. “Edible cannabinoid product” means any product containing nonintoxicating cannabinoids extracted from hemp that meets the requirements to be sold for human or animal consumption under Minnesota Statutes, section 151.72. The term includes edible cannabinoid products as defined in Minnesota Statutes, section 151.72, subdivision 1(f). The term does not include medical cannabis as defined in Minnesota Statutes, section 152.22, subdivision 6. Subd. 7. Eligible Business. “Eligible business” means a business located within the city that has a current tobacco license to sell tobacco or tobacco products at retail issued by the city under Chapter XI, Section 1105 of the Crystal city code, or that has a current on-sale or off-sale liquor license to sell intoxicating liquor issued by the city under Chapter XII of the Crystal city code. DRAFT INTERIM ORDINANCE 8-10-23 3 CR205-30-894685.v1 Subd. 8. Hemp. “Hemp” has the same meaning given the term in Minnesota Statutes, section 18K.02, subdivision 3, as it may be amended. Subd. 9. Label. “Label” has the same meaning given the term in Minnesota Statutes, section 151.01, subdivision 18, as it may be amended. Subd. 10. Labeling. “Labeling” has the same meaning given the term in Minnesota Statutes, section 151.72, subdivision 1(i). Subd. 11. Licensee. “Licensee” means the entity issued a license under this ordinance to sell edible cannabinoid products at retail. Subd. 12. Moveable Place of Business. “Moveable place of business” means 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. Subd. 13. Lot. “Lot” has the same meaning given the term in Section 505, subdivision 90 of the Crystal city code. Subd. 14. Ordinance. “Ordinance” means this ordinance requiring a license and imposing regulations on the retail sale of edible cannabinoid products. Subd. 15. Product Label. “Product label” has the same meaning given the term “label” in Minnesota Statutes, section 151.72, subdivision 1(h). Subd. 16. Public Park. “Public park” means an open space, playground, athletic field, or other facility owned by the City, a school district, the county, or other public entity that is open to, and regularly used by, those under the age of 21. Subd. 17. Residential Treatment Facility. “Residential treatment facility” means a facility providing mental health, alcohol, or drug treatment services established or operated in accordance with Minnesota Rules, chapter 2960, or Minnesota Statutes, chapters 245G or 260C. Subd. 18. School. “School” means a public or private facility that provides educational programs to 10 or more persons that are under the age of 21 in a classroom setting. The term includes, but is not limited to, any school operated by an independent school district or a charter school operating under Minnesota Statutes, chapter 124E. Subd. 19. THC. Means tetrahydrocannabinol. Subd. 20. Self-Service Merchandising. Open displays of edible cannabinoid products in any manner where any person has access to the edible cannabinoid products without the assistance or intervention of the licensee or the licensee's employee. Assistance or intervention means the actual physical exchange of the edible cannabinoid product between the customer and the licensee or employee. DRAFT INTERIM ORDINANCE 8-10-23 4 CR205-30-894685.v1 Subd. 21. Vending Machine. Any mechanical, electric, or electronic, or other type of device that dispenses edible cannabinoid products upon the insertion of money, tokens, or other form of payment directly into the machine by the person seeking to purchase the edible cannabinoid product. Section 4. License. Subd. 1. Required. No person may directly or indirectly, or by means of any device, keep for retail sale, sell at retail, offer to sell, or otherwise dispose of any edible cannabinoid product at retail at any place in the city without first having obtained a license from the city issued in accordance with the provisions of this ordinance. Subd. 2. Eligibility. The city shall only issue a license to sell edible cannabinoid products to an eligible business that qualifies to receive a license under the requirements of this ordinance. Subd. 3. Manufacturing Exception. No license is required under this ordinance for the manufacturing of edible cannabinoid products or the sale by a manufacturer of its products to resellers, provided the manufacturer does not sell edible cannabinoid products directly to the public. Section 5. Ineligible Places and Operations. The city shall not issue or renew a license under this ordinance to sell edible cannabinoid products to: (a)A business or operation that does not qualify as an eligible business under this ordinance; (b)A business located, or proposed to be located, on a lot that is within: (1)1,000 feet of a school; (2)500 feet of a residential treatment facility; or (3)500 feet of a public park; Distance shall be measured between boundaries of the lot containing the business and the lot containing the school, treatment facility, or public park. If a lot contains both a school and a public park, the 1,000 foot distance shall apply. (c)A business providing delivery sales of any edible cannabinoid products; (d)A moveable place of business; (e)A business utilizing a vending machine to sell edible cannabinoid products; (f)A business located at a premise on which taxes, assessments, or other financial claims of the city are delinquent and unpaid. If an action has been commenced pursuant to DRAFT INTERIM ORDINANCE 8-10-23 5 CR205-30-894685.v1 the provisions of Minnesota Statutes, chapter 278, questioning the amount or validity of taxes, the city 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; or (g)A business that is in violation of one or more provisions of the Crystal city code related to its operations as an eligible business. Section 6. Application Procedure. An application for a license shall be submitted and processed in accordance with this section. Subd. 1. License Application. An application for a new or renewed license to sell edible cannabinoid products shall be made on a form provided by the city and filed, along with all required fees, with the city clerk. 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, information to establish the business qualifies as an eligible business, a site plan for the business, and any additional information the city deems necessary. If the city clerk determines an application is incomplete, the city clerk shall provide the applicant notice of the information necessary to make the application complete. The city shall not process an application until it is made complete. Upon receipt of a completed application, the city clerk shall forward the application to the Police Department to conduct a background investigation. Subd. 2. Fees. No license shall be processed or issued under this ordinance until the appropriate fees have been paid in full. The fees for a license under this ordinance shall be established by city council resolution. Fees are not prorated for licenses issued for less than a full year. Subd. 3. Manager or Agent. If the applicant is a firm, association, partnership, corporation, limited liability company, or joint venture, the application must include the name of the natural person who will serve as the manager or agent of the licensed premises. Such manager or agent must, by the terms of their written consent, (1) take full responsibility for the conduct of the licensed premises, and (2) serve as agent for service of notices and other process relating to the license. A licensee must notify the city in writing within 14 days of any change in such manager or agent indicating the name and address of the new manager or agent and the effective date of such change. Subd. 4. License Decision. The city council may grant or deny a license application. The city council may also continue its consideration of a license if it determines it needs additional information before making its decision. Any of the following are grounds for denial or nonrenewal of a license. (a)The business does not qualify as an eligible business or is an ineligible business or operation under section 5 of this ordinance. (b)The applicant is under the age of 21 years old. DRAFT INTERIM ORDINANCE 8-10-23 6 CR205-30-894685.v1 (c)The applicant has been convicted within the past three years of any violation of a federal, state, or local law, ordinance provision, or other regulation relating to edible cannabinoid products, controlled substances, or the operation of the eligible business. (d)The applicant has had a license to sell edible cannabinoid products, tobacco products, or liquor 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 edible cannabinoid products, whether in the city or in another jurisdiction, that has had a license to sell edible cannabinoid 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. (e)The applicant is the spouse, parent, stepparent, grandparent, brother, or sister, by blood or marriage, of a person ineligible for a license under this ordinance who the city council determines is not the real party in interest or is not the beneficial owner of the business to be operated under the license. (f)The applicant is a business that does not have an operating manager or agent who is eligible pursuant to the provisions of this ordinance. (g)The applicant provides false or misleading information. Any false statement on an application, or any willful omission of any information called for on such application form, shall cause an automatic refusal of license, or if already issued, shall render any license issued pursuant thereto void and of no effect upon written notice of the city. (h)The proposed location does not meet all applicable zoning requirements or requirements of this ordinance. (i)The applicant is prohibited by federal or state law, local ordinance, or other regulation, from holding such a license. (j)The applicant failed to provide information required by the application or provided false or misleading information. Subd. 5. Term. All licenses issued under this ordinance shall expire on December 31 of each calendar year, unless it is revoked, suspended, or forfeited prior to that date. Subd. 6. Renewal. An application to renew a license must be submitted at least 30 days prior to the expiration of the current license. The issuance of a license issued under this ordinance is a privilege and does not entitle the license holder to automatic renewal of the license. Subd. 7. Non-Transferable. All licenses issued under this ordinance shall be valid only on the premises for which the license was issued and only for the person or business to whom the license was issued. The transfer of any license to another location, business, or person is prohibited. DRAFT INTERIM ORDINANCE 8-10-23 7 CR205-30-894685.v1 Section 7. Operational Requirements. Subd. 1. License Display. All licenses shall be posted and displayed in plain view of the general public on the licensed premises. Subd. 2. Responsibility. All licensees under this ordinance shall be responsible for the actions of their employees in regard to the sale of edible cannabinoid products on the licensed premises, and the sale of such an item by an employee shall be considered a sale by the licensee. Subd. 3. Product Compliance. All edible cannabinoid products shall comply with the requirements of Minnesota Statutes, section 151.72 including, but not limited to, that they do not contain more than 0.3 percent of any tetrahydrocannabinol, more than five milligrams of any tetrahydrocannabinol in a single serving, or more than a total of 50 milligrams of any tetrahydrocannabinol per package. Subd. 4. Product Display. All edible cannabinoid products shall be stored either: (a) behind a counter or other area not freely accessible to customers; or (b) in a case or other storage unit not left open and accessible to the general public. Subd. 5. Age Posting. 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 edible cannabinoid products are offered for sale. The required signage must be posted in a manner that is clearly visible to anyone who is or is considering making a purchase. Subd. 6. Age Verification. A licensee’s employees shall verify by means of government issued photographic identification that any purchaser of a edible cannabinoid product is at least 21 years of age. Subd. 7. Sales. Edible cannabinoid products may only be sold in a direct face-to-face exchange between the licensee’s employee and the consumer. The licensee’s employees selling edible cannabinoid products must be at least 21 years old. It shall be a violation of this ordinance for a licensee to give away, dispense, sell, or offer to sell any edible cannabinoid product in a manner that violates any of the following: (a)To a person under the age of 21 years old. It shall be an affirmative defense to the violation of this section for a person to have reasonably relied upon proof of age; (b)Through the use of a vending machine or similar automated dispensing device; (c)In a manner that does not comply with the requirements of Minnesota Statutes, section 151.72 including, but not limited to, the packaging, labeling, and other requirements provided by that section; (d)At any location outside of the licensed premises; DRAFT INTERIM ORDINANCE 8-10-23 8 CR205-30-894685.v1 (e)By self-service, or in open displays which are accessible to the public without the assistance or intervention of a store employee; (f)By a mobile business, including but not limited to motorized vehicles, moveable sales kiosks, or trailers. Licenses shall be issued to fixed location businesses only; (g)By delivery sales; (h)By any employee under the age of 21 years; (i)To a visibly intoxicated person; (j)By the means of providing samples of any edible cannabinoid product free of charge or at a nominal cost; or (k)To any other person, in any other manner or form prohibited by federal or state law or regulation, or by local ordinance. Subd. 8. Inspections. The premises licensed under this ordinance must be open to inspection by any authorized representative of the city during regular business hours for purposes of ensuring compliance with this ordinance. Subd. 9. Revocation or Suspension. Any license issued under this ordinance may be revoked or suspended by the city council for a violation of any provision of this ordinance as provided herein. Section 8. Other Prohibited Acts. Subd. 1. Non-Compliant Products. No person shall sell or offer for sale a product containing THC, including edible cannabinoid products, that does not meet all the applicable requirements in Minnesota Statutes, section 151.72. Subd. 2. Presumptions. Edible cannabinoid products shall comply with the labeling requirements in Minnesota Statutes, section 151.72, subdivision 5 and all other applicable labeling requirements. The city may presume, for the purposes of enforcing this ordinance, an edible cannabinoid product being offered for sale or that is sold by a licensee has been tested by an independent lab as required in Minnesota Statutes, section 151.72, subdivision 4 and that the information contained on the product label is accurate. Subd. 3. Purchase for Others. It is a misdemeanor violation of this ordinance for any person 21 years of age or older to purchase or otherwise obtain any edible cannabinoid product on behalf of a person under the age of 21. Section 9. Compliance Checks. The city may from time-to-time conduct unannounced compliance checks of licensed establishments. No person used in compliance checks may attempt to use a form of identification that misrepresents the person’s age. All persons lawfully engaged DRAFT INTERIM ORDINANCE 8-10-23 9 CR205-30-894685.v1 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. The city will conduct a compliance check that involves the participation of a person at least 18 years of age, but under the age of 21 to enter the licensed premises to attempt to purchase the edible cannabinoid products. Persons used for the purpose of compliance checks shall be supervised by law enforcement or other designated personnel. Nothing in this ordinance shall prohibit compliance checks authorized by state or federal laws for businesses manufacturing, storing, or selling edible cannabinoid products under any applicable federal or state law. The compliance checks authorized by this ordinance are in addition to any other compliance checks that may be performed related to the tobacco or liquor license held by an eligible business. Section 10. License Actions. Subd. 1. Basis for Action. The city may suspend, revoke, or nonrenew a license issued under this ordinance for any of the following reasons: (a)The applicant has been convicted within the past three years of any violation of a federal, state, or local law, ordinance provision, or other regulation relating to the licensed activity, or has had a license to sell edible cannabinoid products, tobacco, or liquor revoked or suspended within the past five years; (b)Fraud, misrepresentation, bribery, or incorrect statement contained in the application for license, or made in carrying on the licensed activity; (c)Actions that are unauthorized or otherwise beyond the scope of the license granted; (d)Violation of any federal, state, or local regulation or provision; (e)Failure to continuously comply with all conditions required as part of the license; (f)Failure to comply with the applicable zoning code; (g)Failure to pay an administrative penalty imposed by the city council; or (h)The city discovers the license was mistakenly issued or renewed to a person, it shall be revoked upon the discovery that the person was ineligible for the license under this ordinance. Subd. 2. Process. The city will provide a licensee at least 10 days written notice of a hearing to be held before the city council on the potential suspension, revocation, or nonrenewal of its license. The licensee shall be provided an opportunity to be heard at the hearing. If the city council acts to suspend, revoke, or not renew the license, the city will provide the licensee a written notice of the period of suspension, or of the revocation or nonrenewal. All sales of edible cannabinoid products must cease during a suspension period or permanently upon revocation or nonrenewal of the license. DRAFT INTERIM ORDINANCE 8-10-23 10 CR205-30-894685.v1 Section 11. Violation. Unless expressly indicated otherwise, a violation of this ordinance is a misdemeanor. The city may also impose administrative penalties on a licensee for violation of this ordinance. Any administrative penalties may be imposed by the city council, or by administrative citation, and shall be collected in accordance with the Crystal city code. Nothing in this section shall prohibit the city from seeking prosecution as a misdemeanor for any alleged violation of this ordinance. Section 12. Severability and Savings. If any section or portion of this ordinance is found unconstitutional or otherwise invalid or unenforceable by a court of competent jurisdiction, that finding shall not serve as invalidation or affect the validity and enforceability of any other section or provision of this ordinance. Section 13. Effective Date and Term. This ordinance shall become effective immediately and shall terminate upon the effective date of the regular ordinance adopted by the City council imposing licensing and related requires on businesses selling edible cannabinoid products in the city. Section 14. Incorporation. This ordinance incorporates by reference the sections or provisions of the Crystal city code as may be needed to give effect to the provisions of this ordinance and to otherwise carry out its intent. Section 15. Not Codified. Because this ordinance has a limited duration, it will not be codified into the Crystal city code. Section 16. Study. The City Manager is hereby authorized and directed to continue the study the City previously initiated on edible cannabinoid retailers. The purpose of the continued study is to focus on the regulations proposed in the regular ordinance to identify and advise the City Council on whether any amendments should be made to the proposed regulations before final adoption. Adopted this 15th day of August 2023. BY THE CITY COUNCIL Jim Adams, Mayor ATTEST: ____________________________ Christina Serres, City Clerk Council Adoption & Effective Date:_________, 2023 Publication: ______________, 2023 1 CITY OF CRYSTAL MINNESOTA RESOLUTION NO. 2023-__ RESOLUTION APPROVING SUMMARY LANGUAGE FOR PUBLICATION OF ORDINANCE NO. 2023-____ WHEREAS, the Crystal City Council adopted Ordinance No. 2023-____ “An Interim Ordinance Requiring a License and Imposing Regulations on the Retail Sale of Edible Cannabinoid Products” (the “Ordinance”) at its meeting held on August 15, 2023; and WHEREAS, Section 3.12 of the Crystal City Charter and Section 110.13 of the Crystal City Code indicate that ordinances approved by the City Council will be published in summary form and that the City Council is to approve the form of the summary. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Crystal that the following summary language is hereby approved for publication of the Ordinance: CITY OF CRYSTAL ORDINANCE #2023-____ AN INTERIM ORDINANCE REQUIRING A LICENSE AND IMPOSING REGULATIONS ON THE RETAIL SALE OF EDIBLE CANNABINOID PRODUCTS SUMMARY OF ORDINANCE No. 2023-___ Ordinance No. 2023-___ has been approved by the city council on August 15, 2023. A printed copy of the full text of the ordinance is available for public inspection in the office of the city clerk. The City Council adopted the above referenced interim ordinance establishing a licensing requirement for the retail sale of edible cannabinoid products. The ordinance establishes eligibility requirements to obtain a license and imposes regulations on businesses selling edible cannabinoid products. These are temporary regulations until a regular licensing ordinance can be adopted. A copy of the full text of the ordinance is available on the City’s website and by contacting the City Clerk. BE IT FINALLY RESOLVED, that the City Clerk is hereby authorized and directed to do each of the following: 1.Publish the approved summary language once in the City’s official newspaper; 2.Place a copy of this Resolution, the full text of the Ordinance, and the affidavit of publication of the summary language in the City’s ordinance book; 2 3. Make the full text of the Ordinance available for public inspection in the office of the City Clerk during the City’s regular business hours; and 4.Post the Ordinance on the City’s website. Adopted this 15th day of August 2023. ______________________________ Jim Adams, Mayor ATTEST: _______________________________ Chrissy Serres, City Clerk DRAFT 8-10-23 1 CR205-30-894493.v2 CITY OF CRYSTAL ORDINANCE NO. _____ AN ORDINANCE REQUIRING A LICENSE AND IMPOSING REGULATIONS ON THE RETAIL SALE OF EDIBLE CANNABINOID PRODUCTS The City of Crystal ordains: Section 1. Purpose. The purpose of this ordinance is to establish licensing and sale regulations for the retail sale of edible cannabinoid products derived from hemp as provided in Minnesota Statutes, section 151.72. Section 2. Legislative Findings. The city council hereby finds and determines as follows: (a)In 2022, the Minnesota Legislature amended Minnesota Statutes, section 151.72 to expressly allow the sale of edible products that contain tetrahydrocannabinol (“THC”) without any associated licensing requirements. (b)The unexpected change in the law, the lack of licensing and other regulatory standards, and the concerns regarding the potential impacts of the sale of edible cannabinoid products resulted in the city council acting on August 16, 2022 to enact a one-year moratorium on the sale of THC Products. (c)Since that time, the city has studied the issue and anticipated the Legislature would provide additional guidance and regulation during the 2023 session on the sale of such products. While the Legislature did adopt a 321-page cannabis bill, it essentially maintained the status quo regarding the sale of edible cannabinoid products under Minnesota Statutes, section 151.72 until the newly established Office of Cannabis Management begins licensing cannabis businesses. (d)Because the Office of Cannabis Management is not likely to begin issuing licenses to sell lower-potency hemp products until early 2025, and faced with continuing uncertainties associated with the sale of edible cannabinoid products, the city council determines it is in the best interests of the city to require a license to sell such products and to impose related regulations until the Office of Cannabis Management assumes the licensing of cannabis businesses. Section 3. Definitions. For the purposes of this ordinance, the following terms shall have the meanings given them in this section. If a term is not defined herein, it shall have the meaning given it in Minnesota Statutes, section 151.72 or, if not defined therein, the definition given the term in the Crystal city code. Subd. 1. City. “City” means the City of Crystal, Minnesota. Subd. 2. Compliance Checks. “Compliance checks” means the system the city uses to investigate and ensure that those authorized to sell edible cannabinoid products are following and DRAFT 8-10-23 2 CR205-30-894493.v2 complying with the requirements of this ordinance and state laws. Compliance checks involve the use of compliance check minors, as authorized by this ordinance, who purchase or attempt to purchase edible cannabinoid 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 edible cannabinoid products. Subd. 3. Controlled Substance. “Controlled substance” has the meaning given the term in Minnesota Statutes, section 152.01, subdivision 4, as amended. Subd. 4. Crystal City Code. “Crystal city code” means the most current version of The Crystal City Code. Subd. 5. Delivery Sales. “Delivery sales” mean the sale of any edible cannabinoid product to any person for personal consumption and not for resale when the sale is conducted by any means other than an in-person, over-the-counter sales transaction in a retail establishment. Delivery sales include, but are not limited to, the sale of any edible cannabinoid products when the sale is conducted by telephone, other voice transmission, mail, the internet, or app-based service. Delivery sales include delivery by licensees or third parties by any means, including curbside pick- up. Subd. 6. Edible Cannabinoid Product. “Edible cannabinoid product” means any product containing nonintoxicating cannabinoids extracted from hemp that meets the requirements to be sold for human or animal consumption under Minnesota Statutes, section 151.72. The term includes edible cannabinoid products as defined in Minnesota Statutes, section 151.72, subdivision 1(f). The term does not include medical cannabis as defined in Minnesota Statutes, section 152.22, subdivision 6. Subd. 7. Eligible Business. “Eligible business” means a business located within the city that has a current tobacco license to sell tobacco or tobacco products at retail issued by the city under Chapter XI, Section 1105 of the Crystal city code, or that has a current on-sale or off-sale liquor license to sell intoxicating liquor issued by the city under Chapter XII of the Crystal city code. Subd. 8. Hemp. “Hemp” has the same meaning given the term in Minnesota Statutes, section 18K.02, subdivision 3, as it may be amended. Subd. 9. Label. “Label” has the same meaning given the term in Minnesota Statutes, section 151.01, subdivision 18, as it may be amended. Subd. 10. Labeling. “Labeling” has the same meaning given the term in Minnesota Statutes, section 151.72, subdivision 1(i). Subd. 11. Licensee. “Licensee” means the entity issued a license under this ordinance to sell edible cannabinoid products at retail. DRAFT 8-10-23 3 CR205-30-894493.v2 Subd. 12. Moveable Place of Business. “Moveable place of business” means 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. Subd. 13. Lot. “Lot” has the same meaning given the term in Section 505, subdivision 90 of the Crystal city code. Subd. 14. Ordinance. “Ordinance” means this ordinance requiring a license and imposing regulations on the retail sale of edible cannabinoid products. Subd. 15. Product Label. “Product label” has the same meaning given the term “label” in Minnesota Statutes, section 151.72, subdivision 1(h). Subd. 16. Public Park. “Public park” means an open space, playground, athletic field, or other facility owned by the City, a school district, the county, or other public entity that is open to, and regularly used by, those under the age of 21. Subd. 17. Residential Treatment Facility. “Residential treatment facility” means a facility providing mental health, alcohol, or drug treatment services established or operated in accordance with Minnesota Rules, chapter 2960, or Minnesota Statutes, chapters 245G or 260C. Subd. 18. School. “School” means a public or private facility that provides educational programs to 10 or more persons that are under the age of 21 in a classroom setting. The term includes, but is not limited to, any school operated by an independent school district or a charter school operating under Minnesota Statutes, chapter 124E. Subd. 19. THC. Means tetrahydrocannabinol. Subd. 20. Self-Service Merchandising. Open displays of edible cannabinoid products in any manner where any person has access to the edible cannabinoid products without the assistance or intervention of the licensee or the licensee's employee. Assistance or intervention means the actual physical exchange of the edible cannabinoid product between the customer and the licensee or employee. Subd. 21. Vending Machine. Any mechanical, electric, or electronic, or other type of device that dispenses edible cannabinoid products upon the insertion of money, tokens, or other form of payment directly into the machine by the person seeking to purchase the edible cannabinoid product. Section 4. License. Subd. 1. Required. No person may directly or indirectly, or by means of any device, keep for retail sale, sell at retail, offer to sell, or otherwise dispose of any edible cannabinoid product at retail at any place in the city without first having obtained a license from the city issued in accordance with the provisions of this ordinance. DRAFT 8-10-23 4 CR205-30-894493.v2 Subd. 2. Eligibility. The city shall only issue a license to sell edible cannabinoid products to an eligible business that qualifies to receive a license under the requirements of this ordinance. Subd. 3. Manufacturing Exception. No license is required under this ordinance for the manufacturing of edible cannabinoid products or the sale by a manufacturer of its products to resellers, provided the manufacturer does not sell edible cannabinoid products directly to the public. Section 5. Ineligible Places and Operations. The city shall not issue or renew a license under this ordinance to sell edible cannabinoid products to: (a)A business or operation that does not qualify as an eligible business under this ordinance; (b)A business located, or proposed to be located, on a lot that is within: (1)1,000 feet of a school; (2)500 feet of a residential treatment facility; or (3)500 feet of a public park; Distance shall be measured between boundaries of the lot containing the business and the lot containing the school, treatment facility, or public park. If a lot contains both a school and a public park, the 1,000 foot distance shall apply. (c)A business providing delivery sales of any edible cannabinoid products; (d)A moveable place of business; (e)A business utilizing a vending machine to sell edible cannabinoid products; (f)A business located at a premise on which taxes, assessments, or other financial claims of the city are delinquent and unpaid. If an action has been commenced pursuant to the provisions of Minnesota Statutes, chapter 278, questioning the amount or validity of taxes, the city 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; or (g)A business that is in violation of one or more provisions of the Crystal city code related to its operations as an eligible business. Section 6. Application Procedure. An application for a license shall be submitted and processed in accordance with this section. DRAFT 8-10-23 5 CR205-30-894493.v2 Subd. 1. License Application. An application for a new or renewed license to sell edible cannabinoid products shall be made on a form provided by the city and filed, along with all required fees, with the city clerk. 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, information to establish the business qualifies as an eligible business, a site plan for the business, and any additional information the city deems necessary. If the city clerk determines an application is incomplete, the city clerk shall provide the applicant notice of the information necessary to make the application complete. The city shall not process an application until it is made complete. Upon receipt of a completed application, the city clerk shall forward the application to the Police Department to conduct a background investigation. Subd. 2. Fees. No license shall be processed or issued under this ordinance until the appropriate fees have been paid in full. The fees for a license under this ordinance shall be established by city council resolution. Fees are not prorated for licenses issued for less than a full year. Subd. 3. Manager or Agent. If the applicant is a firm, association, partnership, corporation, limited liability company, or joint venture, the application must include the name of the natural person who will serve as the manager or agent of the licensed premises. Such manager or agent must, by the terms of their written consent, (1) take full responsibility for the conduct of the licensed premises, and (2) serve as agent for service of notices and other process relating to the license. A licensee must notify the city in writing within 14 days of any change in such manager or agent indicating the name and address of the new manager or agent and the effective date of such change. Subd. 4. License Decision. The city council may grant or deny a license application. The city council may also continue its consideration of a license if it determines it needs additional information before making its decision. Any of the following are grounds for denial or nonrenewal of a license. (a)The business does not qualify as an eligible business or is an ineligible business or operation under section 5 of this ordinance. (b)The applicant is under the age of 21 years old. (c)The applicant has been convicted within the past three years of any violation of a federal, state, or local law, ordinance provision, or other regulation relating to edible cannabinoid products, controlled substances, or the operation of the eligible business. (d)The applicant has had a license to sell edible cannabinoid products, tobacco products, or liquor 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 edible cannabinoid products, whether in the city or in another jurisdiction, that has had a license to sell edible cannabinoid 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 DRAFT 8-10-23 6 CR205-30-894493.v2 revocation or suspension. (e) The applicant is the spouse, parent, stepparent, grandparent, brother, or sister, by blood or marriage, of a person ineligible for a license under this ordinance who the city council determines is not the real party in interest or is not the beneficial owner of the business to be operated under the license. (f) The applicant is a business that does not have an operating manager or agent who is eligible pursuant to the provisions of this ordinance. (g) The applicant provides false or misleading information. Any false statement on an application, or any willful omission of any information called for on such application form, shall cause an automatic refusal of license, or if already issued, shall render any license issued pursuant thereto void and of no effect upon written notice of the city. (h) The proposed location does not meet all applicable zoning requirements or requirements of this ordinance. (i) The applicant is prohibited by federal or state law, local ordinance, or other regulation, from holding such a license. (j) The applicant failed to provide information required by the application or provided false or misleading information. Subd. 5. Term. All licenses issued under this ordinance shall expire on December 31 of each calendar year, unless it is revoked, suspended, or forfeited prior to that date. Subd. 6. Renewal. An application to renew a license must be submitted at least 30 days prior to the expiration of the current license. The issuance of a license issued under this ordinance is a privilege and does not entitle the license holder to automatic renewal of the license. Subd. 7. Non-Transferable. All licenses issued under this ordinance shall be valid only on the premises for which the license was issued and only for the person or business to whom the license was issued. The transfer of any license to another location, business, or person is prohibited. Section 7. Operational Requirements. Subd. 1. License Display. All licenses shall be posted and displayed in plain view of the general public on the licensed premises. Subd. 2. Responsibility. All licensees under this ordinance shall be responsible for the actions of their employees in regard to the sale of edible cannabinoid products on the licensed premises, and the sale of such an item by an employee shall be considered a sale by the licensee. Subd. 3. Product Compliance. All edible cannabinoid products shall comply with the requirements of Minnesota Statutes, section 151.72 including, but not limited to, that they do not DRAFT 8-10-23 7 CR205-30-894493.v2 contain more than 0.3 percent of any tetrahydrocannabinol, more than five milligrams of any tetrahydrocannabinol in a single serving, or more than a total of 50 milligrams of any tetrahydrocannabinol per package. Subd. 4. Product Display. All edible cannabinoid products shall be stored either: (a) behind a counter or other area not freely accessible to customers; or (b) in a case or other storage unit not left open and accessible to the general public. Subd. 5. Age Posting. 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 edible cannabinoid products are offered for sale. The required signage must be posted in a manner that is clearly visible to anyone who is or is considering making a purchase. Subd. 6. Age Verification. A licensee’s employees shall verify by means of government issued photographic identification that any purchaser of an edible cannabinoid product is at least 21 years of age. Subd. 7. Sales. Edible cannabinoid products may only be sold in a direct face-to-face exchange between the licensee’s employee and the consumer. The licensee’s employees selling edible cannabinoid products must be at least 21 years old. It shall be a violation of this ordinance for a licensee to give away, dispense, sell, or offer to sell any edible cannabinoid product in a manner that violates any of the following: (a)To a person under the age of 21 years old. It shall be an affirmative defense to the violation of this section for a person to have reasonably relied upon proof of age; (b)Through the use of a vending machine or similar automated dispensing device; (c)In a manner that does not comply with the requirements of Minnesota Statutes, section 151.72 including, but not limited to, the packaging, labeling, and other requirements provided by that section; (d)At any location outside of the licensed premises; (e)By self-service, or in open displays which are accessible to the public without the assistance or intervention of a store employee; (f)By a mobile business, including but not limited to motorized vehicles, moveable sales kiosks, or trailers. Licenses shall be issued to fixed location businesses only; (g)By delivery sales; (h)By any employee under the age of 21 years; (i)To a visibly intoxicated person; DRAFT 8-10-23 8 CR205-30-894493.v2 (j)By the means of providing samples of any edible cannabinoid product free of charge or at a nominal cost; or (k)To any other person, in any other manner or form prohibited by federal or state law or regulation, or by local ordinance. Subd. 8. Inspections. The premises licensed under this ordinance must be open to inspection by any authorized representative of the city during regular business hours for purposes of ensuring compliance with this ordinance. Subd. 9. Revocation or Suspension. Any license issued under this ordinance may be revoked or suspended by the city council for a violation of any provision of this ordinance as provided herein. Section 8. Other Prohibited Acts. Subd. 1. Non-Compliant Products. No person shall sell or offer for sale a product containing THC, including edible cannabinoid products, that does not meet all the applicable requirements in Minnesota Statutes, section 151.72. Subd. 2. Presumptions. Edible cannabinoid products shall comply with the labeling requirements in Minnesota Statutes, section 151.72, subdivision 5 and all other applicable labeling requirements. The city may presume, for the purposes of enforcing this ordinance, an edible cannabinoid product being offered for sale or that is sold by a licensee has been tested by an independent lab as required in Minnesota Statutes, section 151.72, subdivision 4 and that the information contained on the product label is accurate. Subd. 3. Purchase for Others. It is a misdemeanor violation of this ordinance for any person 21 years of age or older to purchase or otherwise obtain any edible cannabinoid product on behalf of a person under the age of 21. Section 9. Compliance Checks. The city may from time-to-time conduct unannounced compliance checks of licensed establishments. No person used in compliance checks may attempt to use a form of identification that misrepresents the person’s 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. The city will conduct a compliance check that involves the participation of a person at least 18 years of age, but under the age of 21 to enter the licensed premises to attempt to purchase the edible cannabinoid products. Persons used for the purpose of compliance checks shall be supervised by law enforcement or other designated personnel. Nothing in this ordinance shall prohibit compliance checks authorized by state or federal laws for businesses manufacturing, storing, or selling edible cannabinoid products under any applicable federal or state law. The compliance checks authorized by this ordinance are in addition to any other compliance checks that may be performed related to the tobacco or liquor license held by an eligible business. DRAFT 8-10-23 9 CR205-30-894493.v2 Section 10. License Actions. Subd. 1. Basis for Action. The city may suspend, revoke, or nonrenew a license issued under this ordinance for any of the following reasons: (a)The applicant has been convicted within the past three years of any violation of a federal, state, or local law, ordinance provision, or other regulation relating to the licensed activity, or has had a license to sell edible cannabinoid products, tobacco, or liquor revoked or suspended within the past five years; (b)Fraud, misrepresentation, bribery, or incorrect statement contained in the application for license, or made in carrying on the licensed activity; (c)Actions that are unauthorized or otherwise beyond the scope of the license granted; (d)Violation of any federal, state, or local regulation or provision; (e)Failure to continuously comply with all conditions required as part of the license; (f)Failure to comply with the applicable zoning code; (g)Failure to pay an administrative penalty imposed by the city council; or (h)The city discovers the license was mistakenly issued or renewed to a person, it shall be revoked upon the discovery that the person was ineligible for the license under this ordinance. Subd. 2. Process. The city will provide a licensee at least five days written notice of a hearing to be held before the city council on the potential suspension, revocation, or nonrenewal of its license. The licensee shall be provided an opportunity to be heard at the hearing. If the city council acts to suspend, revoke, or not renew the license, the city will provide the licensee a written notice of the period of suspension, or of the revocation or nonrenewal. All sales of edible cannabinoid products must cease during a suspension period or permanently upon revocation or nonrenewal of the license. Section 11. Violation. Unless expressly indicated otherwise, a violation of this ordinance is a misdemeanor. The city may also impose administrative penalties on a licensee for violation of this ordinance. Any administrative penalties may be imposed by the city council, or by administrative citation, and shall be collected in accordance with the Crystal city code. Nothing in this section shall prohibit the city from seeking prosecution as a misdemeanor for any alleged violation of this ordinance. Section 12. Severability and Savings. If any section or portion of this ordinance is found unconstitutional or otherwise invalid or unenforceable by a court of competent jurisdiction, that finding shall not serve as invalidation or affect the validity and enforceability of any other section or provision of this ordinance. DRAFT 8-10-23 10 CR205-30-894493.v2 Section 13. Effective Date and Term. This ordinance shall become effective on the first day of publication after adoption. This ordinance shall terminate and no longer be effective once the sale of edible cannabinoid products is no longer allowed except upon the issuance of a license to sell lower- potency hemp edibles by the Office of Cannabis Management under Minnesota Statutes, chapter 342. Section 14. Incorporation. This ordinance incorporates by reference the sections or provisions of the Crystal city code as may be needed to give effect to the provisions of this ordinance and to otherwise carry out its intent. Section 15. Not Codified. Because this ordinance has a limited duration, it will not be codified into the Crystal city code. Adopted this __ day of ______________ 2023. BY THE CITY COUNCIL Jim Adams, Mayor ATTEST: ____________________________ Christina Serres, City Clerk First Reading: ____________, 2023 Second Reading: __________, 2023 Council Adoption:_________, 2023 Publication: Effective Date: 1 CR205-30-894664.v2 CITY OF CRYSTAL MINNESOTA RESOLUTION NO. 2023-__ RESOLUTION AMENDING APPENDIX IV OF THE CRYSTAL CITY CODE TO ADD EDIBLE CANNABINOID LICENSE RELATED FEES WHEREAS, the City Council adopted an ordinance (“Ordinance”) to require those businesses proposing to sell edible cannabinoid products to obtain a license from the City; and WHEREAS, those seeking a license under the new regulations are required to pay fees associated with seeking a license; and WHEREAS, the Council wishes to amend Appendix IV of the Crystal City Code, which contains the City’s fee schedule, to establish the fees and administrative penalties associated with edible cannabinoid product licenses. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Crystal that the administration section of the existing Appendix IV of the Crystal City Code be amended by adding the double underlined material as follows: Description 2023 Fee Edible cannabinoid initial license and renewal license $1,000 Edible cannabinoid in-state background investigation – initial license $500 Edible cannabinoid out of state background investigation – initial license $1,000 Edible cannabinoid w/o change background investigation – renewal license $0 Edible cannabinoid w/change background investigation – renewal license $500 Edible cannabinoid administrative penalty for a business – first violation $750; one-day suspension* Edible cannabinoid administrative penalty for a business – second violation $1,500; three-day suspension* Edible cannabinoid administrative penalty for a business – third violation $2,000; 10-day suspension* Edible cannabinoid administrative penalty for a business – fourth violation Revocation* *The administrative penalties described above are only the presumed sanctions for edible cannabinoid licenses and may be subject to alternative penalties pursuant to Crystal City Ordinance No. 2023-__ (“Ordinance”). In the event of any license suspension, the city may select which days a suspension will be served. Notwithstanding the presumed penalties, a license may be revoked for any violation of the Ordinance when in the judgment of the council it is appropriate to do so. The city council may also impose lesser penalties when in the judgment of the council it is appropriate to do so. Other mandatory requirements may be made of any penalized establishment, including but not 2 CR205-30-894664.v2 limited to, meetings with the police department staff to present a plan of action to assure that the problem will not continue, mandatory education sessions with crime prevention staff, or other actions that the city council deems appropriate. BE IT FINALLY RESOLVED, by the City Council as follows: 1.The identified fees and penalties shall go into effect immediately. 2.City staff is authorized to incorporate the amendments approved herein into Appendix IV of the Crystal City Code and to take such other actions as may be necessary to put the amended fees and penalties into effect. Adopted by the Crystal City Council this 15th day of August 2023. BY THE CITY COUNCIL _________________________________ Jim Adams, Mayor ATTEST: ________________________________ Chrissy Serres, City Clerk CR205-30-894850.v1 Kennedy Troy J. Gilchrist 150 South Fifth Street Suite 700 Minneapolis MN 55402 (612) 337-9214 telephone (612) 337-9310 fax tgilchrist@kennedy-graven.com http://www.kennedy-graven.com & Graven C H A R T E R E D MEMORANDUM To: Crystal Mayor and City Council Adam Bell, City Manager From: Troy Gilchrist Date: August 10, 2023 (August 15, 2023 Meeting) Re: Licensing the Retail Sale of Edible Cannabinoid Products and Prohibiting Cannabis Product Use in Public Places --------------------------------------------------------------------------------------------------------------------- The City Council adopted a moratorium on the sale of edible cannabis products in response to the change in the law that went into effect on July 1, 2022. Since that time, staff has been reviewing the issue and, as many anticipated, the Legislature adopted a comprehensive cannabis bill during its 2023 session. The hope was that the Legislature would clarify some of the uncertainties around local regulation of edible cannabinoid products. It didn’t. Instead, the law maintained the status quo regarding the sale of edible cannabinoid products until the new Office of Cannabis Management is formed and begins licensing the sale of cannabis products. As a result, the City Council discussed its options to address the period between the expiration of its moratorium and the start of state licensing. The result of those discussions was to direct the preparation of a licensing ordinance that would apply to edible cannabinoid products until the state actually took over the licensing of such products. The proposed regular licensing ordinance is enclosed for a first reading. An interim ordinance imposing the licensing requirement is also enclosed to address the gap between the expiration of the 2022 moratorium and when the regular licensing ordinance goes into effect. Also included are the required summary resolutions and a resolution amending the fee schedule to establish fees for this new license. The City Council briefly discussed the authority the Legislature provided to prohibit the use of cannabis products in public places. Based on that discussion, and a review of the City Code, my recommendation is to consider adopting an interim ordinance prohibiting use in public places while staff studies the issue and brings back recommendations to the City Council that more comprehensively addresses the use of cannabis, tobacco, and liquor in public places. There was simply not enough time to conduct the level of review and have the staff discussions needed to prepare a comprehensive City Code amendment on this issue. CR205-30-894850.v1 Understanding that there are a lot of documents associated with the cannabis issue included in the packet, I have prepared a chart that briefly explains each to assist the City Council as it works through them. DOCUMENT DESCRIPTION PROPOSED ACTION Interim Ordinance Requiring a License and Imposing Regulations on the Retail Sale of Edible Cannabinoid Products This ordinance allows the licensing requirement and related regulations to go into effect immediately and will expire when the regular licensing ordinance goes into effect. Adopt as presented or as amended by the City Council. Resolution Approving Summary Language of the Interim Licensing Ordinance Approves summary language of the ordinance for publication. Adopt. Ordinance Requiring a License and Imposing Regulations on the Retail Sale of Edible Cannabinoid Products This is the regular licensing ordinance that requires two readings and 30 days before it goes into effect. Conduct first reading and direct any amendments the City Council may like to make for the second reading. Resolution Amending Fee Schedule for Edible Cannabinoid Licensing Amends the fee schedule to add the needed fees. Liquor licensing fees were used as a guide. Adopt as presented or as amended as these fees are needed for the interim licensing ordinance. Interim Ordinance Prohibiting the Use of Cannabis Products in Public Places Use of cannabis products became legal on Aug. 1st and this ordinance prohibits use in public places while a study is done and a code amendment is drafted. Adopt as presented or as amended by the City Council. Resolution Approving Summary Language of the Interim Ordinance Prohibiting Public Use Approves summary language of the ordinance for publication. Adopt. I will be happy to answer any questions the City Council may have regarding these documents. CR205-30-894853.v1 CITY OF CRYSTAL ORDINANCE NO. _____ AN INTERIM ORDINANCE PROHIBITING THE USE OF CANNABIS PRODUCTS IN PUBLIC PLACES The City of Crystal ordains: Section 1. Legislative Findings. The city council hereby finds and determines as follows: (a)The Minnesota Legislature legalized the adult use of cannabis flower and cannabinoid products, including in public places, as of August 1, 2023. (b)As part of the legislation, the legislature authorized local units of government in Minnesota Statutes, section 152.0263, subdivision 5 to adopt an ordinance establishing a petty misdemeanor offense for anyone who unlawfully uses cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products in a public place, with certain limitations on what may be defined as a public place. (c)The City Council recognizes that the City limits use of other products in certain public places and determines it is in the best interests of the City and its residents to similarly restrict the use of cannabis products. (d)Section 3.065 of the Crystal City Charter expressly authorizes the City Council to adopt an interim ordinance imposing temporary regulations on a specific matter to protect the public health, safety, and welfare of the City’s residents. Such an interim ordinance can be adopted at the meeting at which it is introduced and can be made effective immediately. (e)The City Council desires to establish temporary regulations on the use of cannabis products in public places while the City studies and enacts an amendment to the Crystal city code to address this issue. Section 2. Definitions. For the purposes of this Ordinance, the following terms shall have the meaning given them in this section. If a term is not defined herein, it shall have the meaning given it in Minnesota Statutes, section 342.01 or, if not defined therein, the definition given the term in the Crystal city code. Subd. 1. Cannabis Products. “Cannabis products” means any of the following: cannabis flower; cannabis products; lower-potency hemp edibles; or hemp-derived consumer products, as each are defined in Minnesota Statutes, section 342.01. Subd. 2. City. “City” means the City of Crystal, Minnesota. CR205-30-894853.v1 Subd. 3. Crystal City Code. “Crystal city code” means the most current version of The Crystal City Code. Subd. 4. Ordinance. “Ordinance” means this interim ordinance prohibiting the use of cannabis products in public places. Subd. 1. Park. “Park” means any public park, playground, sports field, open space, swimming pool, community center, or other recreational area or facility. Subd. 2. Parking Lot. “Parking lot” means any state, county, or city owned parking area that is made available to the public for parking. Subd. 3. Public Place. “Public place” means any public park, right-of-way, or parking lot. The term does not include any of the following: a private residence, including the person's curtilage or yard; private property not generally accessible by the public, unless the person is explicitly prohibited from consuming cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products on the property by the owner of the property; or the premises of an establishment or event licensed to permit on-site consumption. Subd. 4. Right-of-Way. “Right-of-way” means the entire area within a public roadway, highway, street, cartway, bicycle lane, trail, and public sidewalk. Section 3. Study. The City shall conduct a study of the ordinances being adopted to limit the use of cannabis products in public places to determine how best to define public places and to identify any other issues that may need to be addressed in developing a proposed amendment to the Crystal city code. The study shall include how the City regulates the use of liquor and tobacco in public places to determine if additional amendments are needed to create a more uniform set of regulations. The City Manager shall present the City Council a proposed amendment on these issues for the City Council’s consideration. Section 4. Prohibition. It is a violation of this ordinance for any person to use cannabis products in a public place within the City. Section 5. Enforcement. A violation of this ordinance is a petty misdemeanor and is subject to a fine of not more than $300. Section 6. Effective Date and Term. This ordinance shall be effective immediately and shall have a term of six months. This ordinance shall remain in effect until the expiration of the six-month term, until it is expressly repealed by the City Council, or until the effective date of an ordinance amending the Crystal city code to address the use of cannabis products in public places. Section 7. Not Codified. Because this ordinance has a limited duration, it will not be codified into the Crystal city code. CR205-30-894853.v1 Adopted this 15th day of August 2023. BY THE CITY COUNCIL Jim Adams, Mayor ATTEST: ____________________________ Christina Serres, City Clerk Council Adoption & Effective Date:_________, 2023 Publication: ______________, 2023 1 CITY OF CRYSTAL MINNESOTA RESOLUTION NO. 2023-__ RESOLUTION APPROVING SUMMARY LANGUAGE FOR PUBLICATION OF ORDINANCE NO. 2023-____ WHEREAS, the Crystal City Council adopted Ordinance No. 2023-____ “An Interim Ordinance Prohibiting the Use of Cannabis Products in Public Places” (the “Ordinance”) at its meeting held on August 15, 2023; and WHEREAS, Section 3.12 of the Crystal City Charter and Section 110.13 of the Crystal City Code indicate that ordinances approved by the City Council will be published in summary form and that the City Council is to approve the form of the summary. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Crystal that the following summary language is hereby approved for publication of the Ordinance: CITY OF CRYSTAL ORDINANCE #2023-____ AN INTERIM ORDINANCE PROHIBITING THE USE OF CANNABIS PRODUCTS IN PUBLIC PLACES SUMMARY OF ORDINANCE No. 2023-___ Ordinance No. 2023-___ has been approved by the city council on August 15, 2023. A printed copy of the full text of the ordinance is available for public inspection in the office of the city clerk. The City Council adopted the above referenced interim ordinance establishing a prohibition on the use of cannabis products in public places. The ordinance defines its terms and directs that a study be conducted to determine the appropriate language for an amendment to the Crystal city code to address this issue. The interim ordinance is in effect for up to six months. A copy of the full text of the ordinance is available on the City’s website and by contacting the City Clerk. BE IT FINALLY RESOLVED, that the City Clerk is hereby authorized and directed to do each of the following: 1.Publish the approved summary language once in the City’s official newspaper; 2.Place a copy of this Resolution, the full text of the Ordinance, and the affidavit of publication of the summary language in the City’s ordinance book; 2 3. Make the full text of the Ordinance available for public inspection in the office of the City Clerk during the City’s regular business hours; and 4.Post the Ordinance on the City’s website. Adopted this 15th day of August 2023. ______________________________ Jim Adams, Mayor ATTEST: _______________________________ Chrissy Serres, City Clerk Memorandum DATE: August 15, 2023 TO: City Council FROM: Mark Ray, PE, Director of Public Works Ben Perkey, PE, Engineering Project Manager SUBJECT: 2024 Utility Reconstruction Project resident questionnaire discussion Background The 2024 Utility Reconstruction Project is proposed to reconstruct Louisiana Avenue from Medicine Lake Road (27th Avenue N) to 32nd Avenue N, as well as the 31st Ave dead end west of Louisiana Ave (all in New Hope). The project is a joint project with the City of New Hope that has been planned for years. Similar to previous utility reconstruction projects, city utilities within the right-of-way will be replaced and the roadway will be reconstructed. Since this is a joint project with New Hope, certain costs are split between the two cities. Louisiana Ave in the project area has residential homes on the east (Crystal) side of the road and is industrial on the west (New Hope) side of the road. Closer to 32nd Ave there are residential homes on both the east and west side, all of which are in Crystal. There are two residential homes on the west side of the road near 32nd that are in New Hope. In looking at the overall pedestrian network in the area between Winnetka Ave and Douglas Drive, it was identified that there is no north-south sidewalk connection between Medicine Lake Road and 32nd Ave other than along the county highways. As such, both Crystal and New Hope staff identified this project as an opportunity to provide a new north/south sidewalk connection halfway between Winnetka Ave and Douglas Drive. Louisiana Avenue between Medicine Lake Road and 32nd Avenue is a Municipal State Aid (MSA) road. The proposed project would reconstruct Louisiana Ave to be the same 32’ width, curb face to curb face, as other MSA roads in the city. Since the existing roadway is 40’ in width, the reduction in pavement would not only help meet watershed requirements, but would also create a significant amount of the space needed for a new sidewalk. Additionally, reducing street width is a tool in reducing vehicle speed, which was a concern noted by residents. Per MSA rules, a 32’ wide street will require no parking on one side of the street. Questionnaire Early in the design phase, Crystal staff mailed a questionnaire to all Crystal and New Hope residents within the proposed project area to gather a variety of information. Per direction from New Hope staff, the questionnaire was not sent to commercial properties. The questionnaire included questions related to the installation of a sidewalk and on-street parking. Questionnaire Results Of the 38 residents and residential property owners within the project, staff received a total of 13 responses. In order to encourage community input, residents that did not respond to the initial survey mailing were sent the survey a second time and encouraged to respond. The 17 (37% of 38) responses are summarized below. Question: A concrete sidewalk is being considered as part of this project. Please place a check next to the following option(s) that you would prefer: Please note the City will maintain the sidewalk including snow removal. Responses: SIDEWALK East (Crystal Side) 5 West (New Hope Side) 7 None 6 Did not respond to questionnaire 24 Note – if residents gave multiple answers are tabulated above. Question: Which side of the roadway would you like parking to be available? Responses: PARKING East (Crystal Side) 8 West (New Hope Side) 6 Did not respond to questionnaire 24 Responses breakdown The below table combines each respondent’s answer to each question. PARKING East West SIDEWALK East 3 2 West 4 3 None 2 3 Note – if residents gave multiple answers all are tabulated above. Four respondents wanted parking on the east side and the sidewalk on the west side. Three respondents wanted parking on the east side and the sidewalk on the east side. Three respondent wanted parking on the west side and the sidewalk on the west side. Three respondents wanted parking on the west side and no sidewalk. Two respondents wanted parking on the west side and the sidewalk on the east side. Two respondents wanted parking on the east side and no sidewalk. Recommended Action Staff is requesting direction from Council with regards to both the sidewalk and parking. In order to keep the project design process on schedule, and coordinated with New Hope, Council direction is needed. One important note that if the direction is given for the sidewalk to be on the west side, this will have to go before the New Hope City Council for approval. Should the New Hope Council not approve it, then either the sidewalk would need to go on the east (Crystal) side or no sidewalk be included in the project. 1 West Metro Fire-Rescue District August 15, 2023 Crystal Quarterly Update ADMINISTRATION/OPERATIONS REPORT Calls for Service Report January 1 – June 30, 2023 Total Calls for Service 983 Estimated fire loss $ 1,505,700 Crystal 393 New Hope 553 Mutual Aid 37 January 1 – December 31, 2022 Total Calls for Service 2128 with 2 severe weather Crystal 959 Estimated fire loss $1,501,240 New Hope 1099 Mutual Aid 68 January 1 – December 31, 2021 Total Calls for Service 2124 Estimated fire loss $1,703,242 Crystal 890 New Hope 1,169 Mutual Aid 65 January 1 – December 31, 2020 Total Calls for Service 1828 Estimated fire loss $1,313,433 Crystal 781 New Hope 983 Mutual Aid 64 Not responded to per COVID-19 Protocols 178 January 1 – December 31, 2019 Total Calls for Service 2018 Estimated fire loss $2,276,913 Fires EMS/Rescue Hazardous Condition Service Call Good Intent Fire Alarm Severe Weather Total Mutual/Auto Aid 28 32%0 0 0 9 18%0 0 37 4% New Hope 31 35%321 57%56 58%15 60%26 51%104 65%0 553 56% Crystal 29 33%242 43%41 42%10 40%16 31%55 35%0 393 40% Total 88 9%563 57%97 10%25 4%51 5%159 15%983 100% 0 200 400 600 800 1000 1200 2023 Calls for Service Jan 1-Jun 30 2 January 1 – December 31, 2018 Total Calls for Service 1856 Estimated fire loss $632,167 January 1 – December 31, 2017 Total Calls for Service 1922 Estimated fire loss $588,517 January 1 – December 31, 2016 Total Calls for Service 1573 Estimated fire loss $1,637,094 January 1 – December 31, 2015 Total Calls for Service 1514 Estimated fire loss $657,914 January 1 – December 31, 2014 Total Calls for Service 1663 Estimated fire loss $1,861,162 January 1 – December 31, 2013 Total Calls for Service 1448 Estimated fire loss $357,182 January 1 – December 31, 2012 Total Calls for Service 1349 Estimated fire loss $169,900 January 1 – December 31, 2011 Total Calls for Service 1638 Estimated fire loss $318,749 Police/Fire Command Staff Meeting We had our quarterly police/fire command staff meeting on June 6. We met with the embedded social workers from each city. We passed along a “job well done” by their staff at a couple of incidents. We discussed joint active threat training, UASI grant for the EOC, and policy on marijuana use by staff. CenterPoint Energy Community Safety Grant We are the recipient of a 2023 Community Safety Grant from CenterPoint Energy in the amount of $2,500 for our home safety survey program. The City of New Hope graciously allowed us to apply for the grant this year. ADMINISTRATION Retirement / Resignation Recruit Rory Purnell was terminated on May 14th; Rory was a 2022 recruit and had only been with WMFRD since November. Recruit Jamel Hodges resigned on June 1st for personal reasons; Jamel was also a 2022 recruit and had only been with WMFRD since November. Apprentice Piter Rodrigues resigned on June 1st, he and his family are relocating to Australia and will be a bit out of our response range; Piter was a 2022 apprentice who did his recruit training with Golden Valley FD in 2021-22 and had only been with WMFRD since November. Return to West Metro Firefighter Matt Kilpatrick took a Leave of Absence (LOA) in July of 2022 to work through some personal schooling; he has completed his schooling and returned from his LOA to continue as a WMFRD firefighter. Explorers We have a total of 13 Explorers now with a couple more checking it out (we have determined a need for a cap at 15 Explorers due to gear, transportation and training issues) and 16 Explorer Adult Advisors (14 from WMFRD, 1 from BCFD and 1 from St. Francis FD) that rotate through the training and supervision requirements. 25-year anniversary of West Metro Fire Our 25th anniversary was on July 6th. This was an incredibly successful event. The night was beautiful. We had six food trucks, a kids DJ, kids obstacle course, tech rescue demonstration, vehicle extrication and live fire demonstrations. TRAINING/EMERGENCY MANAGEMENT 3 Training Pierce Engine Inservice training Since April, the WMFRD training division has been preparing our firefighters for our new engines, prior to the delivery of our first Pierce Engine, trainings were conducted on new MSA thermal imaging cameras and new hose load specifications. The entire month of June was focused on firefighter in-service and operator level training. Resulting in our Pierce Engine being placed in-service in the beginning of July. Live Fire WMFRD has scheduled live fire training for Saturday, October 7th at a property owned by the City of New Hope. Live fire is a critical training component that affords use the opportunity to test our skills in a realistic environment. Providing us with a chance to improve our fire attack skills, learn about fire behavior, increase our fire ground communication, and work on our hose line management. Mass Casualty/Active Threat The Hennepin County Police Chief’s Association, Hennepin County Fire Chief’s Association and Hennepin County are hosting regional response training at Wayzata Middle school. West Metro has ten firefighters participating in this training opportunity. West Suburban Fire Academy The West Suburban Fire Academy was completed on June 10th with the final round of state certification testing. A total of 28 students completed upwards of 220 hours on initial firefighter training. Each student gained state certifications in firefighter I, firefighter II, and hazardous materials operations. Graduation was held at the Plymouth Creek Center on June 12th. Long time KSTP sportscaster Joe Schmit gave the keynote speech to the graduating class. His speech focused on service and impactful leadership. WMFRD Recruits WMFRD recruit firefighters are now working through their summer training program. This program is designed to offer the students more repetition and reinforcement of critical skills learned during their FFI/II classes. Emergency Medical Responder coursework starts in early fall and will run through November, once this class is complete, our recruits will be ready for promotion to apprentice firefighters. LOGISTICS Apparatus and Vehicles The final inspection of the second engine was held on July 27th and 28th. A small group of three traveled to Pierce to complete the inspection. The two remaining engines are scheduled for final inspection at the end of August. Engine 2 will be delivered the week of August 13. Olivia, MN purchased the second E-One engine and on June 29 took delivery of it. In the purchase agreement WMFRD agreed to provide initial training to the firefighters of Olivia Fire Department. A crew of three trainers will be traveling to Oliva to provide them with pump operations training and a maintenance overview. 4 Lanesboro, MN purchased the third E-One engine and they took delivery on July 25. As part of the agreement we are providing up to 8 hours of initial truck operations training and basic pump training. They have set a date of Monday Aug 21st from 1200 to 1900. We will be sending 2-3 instructors. The final E-One engine was sold to Daisy Mountain Fire District in Arizona. They are expecting delivery in September this year. Of the four engines three were sold for $225,000 and one was sold for $200,000. Buildings The overhead garage doors and service doors at Station 2 were painted. They are no longer pink! PREVENTION Deputy Fire Marshal, Shelby Wolf Home Inspection Program Our goal again for 2023 is to complete 30 home safety surveys. So far this year we have conducted four surveys. We have advertised on social media in both of the city’s newsletters. Fire Investigations: 4/4/6/2023 84XX 62nd Avenue North - Deck fire from improper disposal of smoking materials 4/15/2023 45XX Winnetka Avenue North - Apartment Fire from improper disposal of smoking materials 5/12/2023 51XX Idaho Avenue North - House and garage fires 5/23/2023 51XX Edgewood Avenue North - Cooking fire 6/3/2023 72XX and 72XX 32nd Avenue North -Townhome fire due to improper disposal of smoking materials 6/11/2023 77XX 36th Avenue North - small cooking fire in apartment kitchen 6/13/2023 56XX Boone Avenue North - Deck fire due to improper disposal of smoking materials 6/26/2023 33XX Douglas Drive (6 Unit Garage Fire) - improper storage of a grill and/or smoking Other The following link is a garage safety video made in conjunction with CCX. https://ccxmedia.org/cities/west-metro-fire-rescue-district-protecting-against-potential-garage-hazards/ CITY MANAGER MONTHLY CHECK-IN – August 2023 Objective 1 - Strategic planning for continued implementation of Council priorities: • Thriving Business Community o Community Development staff continuing to work with developers regarding redevelopment opportunities o Continuing to work through and advocate for city and community's interest with Blue Line Extension and anti-displacement efforts o Continuing to work with the New Hope Business Association (CBA 2.0) • Strong Neighborhoods o Continued implementation of Master Parks System Plan improvements o Ribbon-cutting event at Bassett Creek Park Disc Golf Course o Summer Park and Recreation Commission neighborhood meeting held at Bassett Creek Park o Helped plan/organize the successful Crystal Frolics event o Council and staff attended neighborhood block parties for 2023 Night to Unite o Ongoing traffic enforcement continues o Tracking the Crystal Airport/MAC/JAZB proposed ordinance amendments • Sound fiscal policies and practices o Received additional grant funding for park improvements and continuing to seek additional outside funding for projects o Notified that the city will be receiving additional CDBG funding for park improvements o Presented the preliminary proposed 2024 budget at the August 3 work session • Goals are to provide levy relief as well as continue important investments in the city and increase saving for future capital projects and replenishment of the General Fund balance • Next 2024 budget work session is scheduled for August 17 • Staff is continuing to update the long-term plan and will present in October • Welcoming and inclusive community o Inclusion & Diversity Commission – Commission members attended the city’s Crystal Frolics to promote the Commission Objective 2 - Work-Life Balance/Professional Development • Supporting staff wellness • Support staff’s continuing professional growth and development • Connecting with neighboring city managers on various local issues • Participate in metro and state professional organizations • Continuing participation in city manager leadership group • Pursuing ICMA City Manager Credentialing Page 1 of 1 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov