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2025.09.02 Council Meeting Packet 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov Posted: Aug. 29, 2025 City Council Meeting Schedule Tuesday, Sept. 2, 2025 Time Meeting Location 6:30 p.m. City council work session to discuss: 1. Police Department quarterly update.* 2. Strategic planning draft plan.* 3. Constituent issues update.* 4. New business.* 5. Announcements.* Upper Community Room/Zoom 7 p.m. City council meeting Council Chambers/Zoom Immediately following the city council meeting Continuation of city council work session Upper Community Room/Zoom Per the requirements of Minnesota Statutes, Section 13D.02, council members may participate by interactive technology. The public may attend the meetings via Zoom by connecting through one of the methods identified below. Topic: Crystal City Council work session and city council meeting. Time: Sept. 2, 2025, 6:30 p.m., Central Time (US and Canada) Join Zoom council work session and meeting: https://us02web.zoom.us/j/81816399230?pwd=Ni7wG6y9fLoYa1PvBZezN3BLEdA098.1 Meeting ID: 818 1639 9230 | Passcode: 4141 Find your local number: https://us02web.zoom.us/u/kvf4eSI56 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. 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov Posted: Aug. 29, 2025 City Council Work Session Agenda Tuesday, Sept. 2, 2025 | 6:30 p.m. Upper Community Room/Zoom Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the Crystal City Council work session was held on Tuesday, Sept. 2, 2025, at _____ p.m. electronically via Zoom and in the upper community room at city hall, 4141 Douglas Dr., Crystal, Minnesota. If the agenda items are not completed in time for the regular city council meeting at 7 p.m., the meeting will be continued and resumed immediately following the regular meeting. I. Attendance Council members Staff ____ Deshler ____ Bell ____ Eidbo ____ Tierney ____ Kamish ____ Therres ____ Kiser ____ Elholm ____ Onesirosan ____ Hubbard ____ Budziszewski ____ Kunde ____ Cummings ____ Struve ____ Sutter ____ Serres II. Agenda The purpose of the work session is to discuss the following agenda item s: 1) Police Department quarterly update. * 2) Strategic planning draft plan.* 3) Constituent issues update. * 4) New business. * 5) 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. Page 1 of 3 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov Posted: Aug. 29, 2025 City Council Meeting Agenda Tuesday, Sept. 2, 2025 7 p.m. Council Chambers/Zoom Meeting The city manager’s comments are bolded. 1. Call to Order, Roll Call, and Pledge of Allegiance 2. Approval of Agenda The council will consider approval of the agenda. 3. Appearances 3.1 Chief Hubbard will present awards to Crystal Police Officers.* 4. Consent Agenda The council will consider the following items, which are routine and non-controversial in nature, in a single motion: 4.1 Approval of the minutes from the following meetings: a. The city council budget work session on Aug. 14, 2025. b. The city council work session on Aug. 19, 2025. c. The city council meeting on Aug. 19, 2025. 4.2 Approval of disbursements over $25,000 submitted by the finance department. 4.3 Approval of the list of license applications submitted by the city clerk. 4.4 Adoption of resolutions to apply for Hennepin County Youth Activities Grant for projects in Forest School Park and Woodland Park. 4.5 Adoption of a resolution approving updated Fund Balance Policy. 4.6 Approval of the 2026-2027 contract with Law Enforcement Labor Services (LELS), Local 44, (police officers). 4.7 Approval of the 2026-2027 contract with Law Enforcement Labor Services (LELS), Local 56, (police supervisors). 4.8 Approval of the 2026 wage adjustment and insurance contribution for non-represented employees. Page 2 of 3 4.9 Adoption of a resolution authorizing replacement of doors at the south fire station. 4.10 Adoption of a resolution awarding the contract to HK Solutions Group (Hydro-Klean) for the 2025 Sewer Rehabilitation Project. 5. Open Forum (The city council appreciates hearing from citizens about items of concern and desires to set aside time during each meeting for open forum. To provide ample opportunity for all, speaking time is limited to three minutes and topic discussion is limited to ten minutes. The mayor may, as presiding officer, extend the total time allowed for a topic. By rule, no action may be taken on any item brought before the council during open forum. The council may place items discussed during open forum onto subsequent council meeting agendas). 6. Regular Agenda 6.1 The council will consider civil penalties for violation of liquor license regulations by Cajun 4 Seafood, LLC d/b/a Cajun Kitchen, located at 5440 West Broadway. Following routine alcohol license compliance checks late last year, an employee of Cajun Kitchen was adjudicated for selling alcohol to a minor. The City Council may now impose civil administrative penalties against the license holder. This is the first alcohol violation for Cajun Kitchen, and according to the City Code in effect at the time of the offense, the City Council may impose a penalty of a $750 fine and a one-day license suspension. Before acting on the civil penalties, the City Council should hear any comments from the representative(s) of Cajun Kitchen. Pursuant to the city ordinance and the penalty for a first violation, staff recommends that the City Council impose a one-day license suspension and a civil fine of $750. 6.2 The council will consider civil penalties for violation of liquor license regulations by Missy Hope, Inc., LLC d/b/a Hope Liquor, located at 111 Willow Bend. Following routine alcohol license compliance checks late last year, an employee of Hope Liquor was adjudicated for selling alcohol to a minor. The City Council may now impose civil administrative penalties against the license holder. This is the first alcohol violation for Hope Liquor, and according to the City Code in effect at the time of the offense, the City Council may impose a penalty of a $750 fine and a one-day license suspension. Before acting on the civil penalties, the City Council should hear any comments from the representative(s) of Hope Liquor. Pursuant to the city ordinance and the penalty for a first violation, staff recommends that the City Council impose a one-day license suspension and a civil fine of $750. 6.3 The council will consider civil penalties for violation of liquor license regulations by Tequilatown, LLC d/b/a Tequilatown Authentic Mexican Cuisine & Bar, located at 99 Willow Bend. Following routine alcohol license compliance checks late last year, an employee of Tequilatown was adjudicated for selling alcohol to a minor. The City Council may now impose civil administrative penalties against the license holder. This is the first alcohol violation for Tequilatown, and according to the City Code in effect at the time of the offense, the City Council may impose a penalty of a $750 fine and a one-day license suspension. Before acting on the civil penalties, the City Council should hear any comments from the representative(s) of Page 3 of 3 Tequilatown. Pursuant to the city ordinance and the penalty for a first violation, staff recommends that the City Council impose a one-day license suspension and a civil fine of $750. 7. Announcements a. The application deadline to register for the Community Police Academy is Tuesday, Sept. 9 at 3 p.m. Classes are held on Tuesday nights from 6–9 p.m. starting Sept. 9 – Oct. 21. b. The next city council work session is Thursday, Sept. 11 at 6:30 p.m. in the Upper Community Room at city hall and via Zoom. c. The Crystal Vehicle Fair is Saturday, Sept. 13, from 10 a.m. – noon at the Crystal Community Center. d. The next city council meeting is Tuesday, Sept. 16, at 7 p.m. in the council chambers at city hall. e. Crystal Farmers Market is every Tuesday from 3—6:30 p.m. at the Crystal Community Center and runs through Sept. 30. f. The city is accepting applications for several volunteer positions on our boards and commissions. We have openings on the Sustainability Commission, Inclusion and Diversity Commission, Planning Commission, Employee Review Board, and on the Metro Blue Line Business Advisory Committee. For more information, please visit the city’s website. g. City council meetings and work sessions are open to the public. Current and previous meetings are available for viewing and listening at www.crystalmn.gov. 8. Adjournment *Denotes no supporting information included in the packet. Have a great Labor Day weekend; stay healthy. See you at Tuesday’s meeting. Crystal City Council budget work session minutes Aug. 14, 2025 Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the Crystal City Council budget work session was held at 6:33 p.m. on Aug. 14, 2025, in the upper community room at city hall, 4141 Douglas Dr. N., Crystal, MN, and via Zoom. Mayor Deshler called the meeting to order. I.Attendance The city manager recorded the attendance for city council and city staff: Council members present: Onesirosan, Deshler (via Zoom), Eidbo (arrived at 6:39 p.m.), Budziszewski, Cummings and Kiser. Council Member Kamish was absent. City staff present: City Manager A. Bell, Assistant City Manager/HR Manager K. Therres, Police Chief B. Hubbard, Public Works Director/City Engineer J. Struve, Community Development Director J. Sutter, Recreation Director J. Elholm and Assistant Finance Director J. Bursheim. II.Agenda The council and staff discussed the following agenda items: 1.2026 budget. 2.Fund balance policy. III.Adjournment The work session adjourned at 9:08 p.m. Julie Deshler, Mayor ATTEST: ___ Adam R. Bell, City Manager 4.1(a) Crystal City Council work session minutes Aug. 19, 2025 Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the Crystal City Council work session was held at 6:30 p.m. on Aug. 19, 2025, in the upper community room at city hall, 4141 Douglas Dr. N., Crystal, MN, and via Zoom. Mayor Deshler called the meeting to order. I.Attendance The assistant city manager recorded the attendance for city council members and staff: Council members present: Cummings, Deshler, Eidbo (arrived at 6:33 p.m.), Kiser, Kamish, Onesirosan (arrived at 6:33 p.m.) and Budziszewski. City staff present: City Manager A. Bell, City Attorney R. Tierney, Assistant City Manager/HR Manager K. Therres, Police Chief B. Hubbard, West Metro Fire-Rescue District Fire Chief J. Kunde and Community Development Director J. Sutter. II.Agenda The council and staff discussed the following agenda item: 1)Development concept for Wells Fargo site (7000 56th Ave. N.). At 7 p.m., Mayor Deshler recessed the work session and continued it until immediately after the Economic Development Authority meeting. Mayor Deshler reconvened the work session at 8:26 p.m. to continue discussion of the following agenda items: 2)Zoning moratorium update. 3)Community Development Department quarterly update. 4)2026 budget follow-up. 5)Council liaison reports. 6)Constituent issues update. 7)City manager update. 8)New business. 9)Announcements. III.Adjournment The work session adjourned at 10:23 p.m. Julie Deshler, Mayor ATTEST: Kimberly Therres, Assistant City Manager 4.1(b) Crystal City Council meeting minutes Aug. 19, 2025 Page 1 of 2 1.Call to Order Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the Crystal City Council meeting was held on Aug. 19, 2025, at 7 p.m. in the council chambers at city hall, 4141 Douglas Dr. N. in Crystal, MN, and via Zoom. Mayor Deshler called the meeting to order. Roll Call Mayor Deshler asked the assistant city manager to call the roll for elected officials. Upon roll call, the following attendance was recorded: Council members present: Cummings, Deshler, Eidbo, Kamish, Kiser, Onesirosan and Budziszewski. City staff present: City Manager A. Bell, City Attorney R. Tierney, Assistant City Manager/HR Manager K. Therres, West Metro Fire-Rescue District Fire Chief J. Kunde, Police Chief B. Hubbard, Deputy Police Chief P. Underthun, Public Works Director/City Engineer J. Struve and Community Development Director J. Sutter. Pledge of Allegiance Mayor Deshler led the council and audience in the Pledge of Allegiance. 2.Approval of Agenda The council considered approval of the agenda. Moved by Council Member Budziszewski and seconded by Council Member Kamish to approve the agenda. Motion carried. 3.Appearances 3.1 Chief Hubbard presented awards to Crystal Police Officers. 4.Consent Agenda The council considered the following items, which are routine and non-controversial in nature, in a single motion: 4.1 Approval of the minutes from the following meetings: a.The city council work session on July 15, 2025. b.The city council meeting on July 15, 2025. c.The city council and sustainability commission special joint work session on July 17, 2025. d.The city council special budget work session on August 7, 2025. 4.2 Approval of disbursements over $25,000 submitted by the finance department. 4.3 Approval of the list of license applications submitted by the city clerk. 4.4 Adoption of Res. No. 2025-71, declaring several diseased trees on private properties as public nuisances and ordering them abated. 4.5 Adoption of Res. No. 2025-72, ordering preparation of an assessment roll, declaring the amount to be assessed, and setting the public hearing date of Oct. 21, 2025, for 2025 delinquent accounts. 4.1(c) Crystal City Council meeting minutes Aug. 19, 2025 Page 2 of 2 4.6 Acceptance of the resignation of Nicole Fernandez from the Inclusion and Diversity Commission. 4.7 Acceptance of the resignation of Laura McClendon from the Sustainability Commission. 4.8 Adoption of Res. No. 2025-73, authorizing execution of a Healthy Tree Canopy grant agreement with Hennepin County. Moved by Council Member Budziszewski and seconded by Council Member Kamish to approve the consent agenda. Motion carried. 5. Open Forum The following persons addressed the council: • Leo Tomperi, 5940 Regent Ave. N., regarding safety concerns at MAC Park. • Brady O’Rourke, 59th Avenue N., regarding notification of community meeting. 6. Regular Agenda 6.1 The council considered approval of the 2026 West Metro Fire-Rescue District budget. West Metro Fire-Rescue District Chief Josh Kunde addressed the council. Moved by Council Member Budziszewski and seconded by Council Member Cummings to approve the 2026 West Metro Fire-Rescue District budget. Voting aye: Cummings, Deshler, Eidbo, Kamish, Kiser, Onesirosan and Budziszewski. Motion carried. 7. Announcements The council and staff made announcements about upcoming events. 8. Adjournment Moved by Council Member Budziszewski and seconded by Council Member Kiser to adjourn the meeting. Motion carried. The meeting adjourned at 7:32 p.m. ___________________________________ Julie Deshler, Mayor ATTEST: _____________________________________ Kimberly Therres, Assistant City Manager 4.1(c) DATE: August 26, 2025 TO: Adam R. Bell, City Manager City of Crystal City Council FROM: Jean McGann, Contracted Finance Director RE: Expenditures over $25,000 Payee Amount Center for Energy & Environment Home Improvement Grants $31,739.63 Central Roofing Company Pool Building Siding $137,100.19 Ed's Collision & Glass Squad 208 & 211 Repair $25,360.03 Flexible Pipe Tool Co Utilities Aries CCTV Pathfinder $118,231.00 Golden Valley JWC JWC January Water Charges $165,890.70 Golden Valley JWC 2025 JWC Capital Improvement Plan $1,221,794.00 Golden Valley JWC JWC May Water Charges $237,398.97 Northland Recreation Twin Oaks Picnic Shelter $46,228.50 Tekton Construction Company Pool Building Carpentry $64,534.68 Boys Contracting LLC Water Hydrants $35,949.74 Flagship Recreation LLC Twin Oaks Play Area Installation $41,869.81 LOGIS Software & IT Services $145,882.00 City of New Hope Animal Control Services $34,773.10 Nuss Truck & Equipment Public Works Dump Truck $142,707.95 Recreation by Lemmie Jones Waterslide & Spray Feature Installation $97,000.00 Xcel Energy City Buildings and Street Lights Electricity $26,240.46 IRS - EFTPS Federal & FICA Withholding Taxes for 8/15/25 Pay Date $97,251.57 MN PERA Employee & City Required Contributions for 8/15/25 Pay Date $80,027.43 $2,749,979.76 Description 4.2 City of Crystal Council Meeting Sept. 2, 2025 Applications for City License Refuse hauler Darling Ingredients, Inc., 9000 382nd Ave., Blue Earth, MN 56013 Dick’s Sanitation Services, 8984 215th St. W., Lakeville, MN 55044 Lepage & Sons, Inc., 23602 University Ave. N.W., Bethel, MN 55005 Republic Services, Inc. d/b/a Allied Waste Services-Blaine, 8661 Rendova St. NE, Circle Pines, MN 55014 Suburban Waste MN LLC, 7125 126th St. W., #500 Savage, MN 55378 Walters Recycling & Refuse, Inc., 2830 101st Ave. NE, Blaine, MN 55449 Waste Management of Minnesota, Inc., 10050 Naples St. NE, Blaine, MN 55449 Rental (new) 5324 Georgia Ave. N. – Drew and Terri Kabanuk (Conditional) 5857 Maryland Ave. N. – Angelique Kapila (Conditional) 5879 Quebec Ave. N. – Bria Wunderlich (Conditional) 5800 Regent Ave. N. – Legacy 5 Investments LLC (Conditional) Rental (renewal) 6524 Brentwood Ave. N. – Eero Mattson (Conditional) 3601-3603 Colorado Ave. N. – Reese Pfeiffer (Conditional) 3648 Colorado Ave. N. – DN Real Estate LLC (Conditional) 2737 Douglas Dr. N. – Reese Pfeiffer (Conditional) 4126 Douglas Dr. N. – Serenity Village Community Church (Conditional) 4134 Douglas Dr. N. – Serenity Village Community Church (Conditional) 4224 Edgewood Ave. N. – Matthew Selden (Conditional) 5304 Fairview Ave. N. – MNSF T2 SPE LLC (Conditional) 4237 Georgia Ave. N. – Abdul Kunert (Conditional) 4824-4826 Idaho Ave. N. – Ryan Manchanthasouk (Conditional) 5943 Idaho Ave. N. – Seth Jacobson (Conditional) 3026 Jersey Ave. N. – Joanne Abelson Seller (Conditional) 3026 Kentucky Ave. N. – Tyler Minkel 6709 Markwood Dr. N. – Daniel Johnson 8332 Northern Dr. – Vincent Martin (Conditional) 5737 Regent Ave. N. – Adetomi Omotayo 5424 Vera Cruz Ave. N. – Vera Cruz LLC 4513 Xenia Ave. N. – Rose Milless (Conditional) 5430 Xenia Ave. N. – Ian Karanja (Conditional) 8024 34th Pl. N. – Grigoriy Vyantrub 6406 44th Ave. N. – Confidential Software LLC 4.3 COUNCIL STAFF REPORT DATE: August 27, 2025 FROM: John Elholm, Recreation Director TO: Mayor and City Council City Manager Adam R. Bell RE: Grant Applications to the Hennepin County Youth Activities Grant Program Background Hennepin County offers playground grants through the Hennepin County Youth Activities Grant Program; to assist with improving recreational facilities for youth throughout Hennepin County. The City of Crystal has two neighborhood parks scheduled for redevelopment in 2026 that would be eligible for these grant funds. The maximum grant amount is $300,000 per project; however, percentage of matching funds is one metric used for scoring applications. Partnerships with other local organizations are encouraged. The proposed grant request includes: Woodland Park is a neighborhood park with aging facilities. The shelter is 45 years old (built in 1980) and the play area is 25 years old (built in 2000). Both are in poor condition. The 2026 Capital Improvement Plan (Park Improvements) includes funds for a new play area, small picnic shelter, basketball court and sidewalks in Woodland Park. Staff recommends applying for a 50% grant match to this project. Hennepin County Grant Request $ 200,000 City of Crystal Contribution $ 200,000 Total Cost of Improvements $ 400,000 Forest School Park is another neighborhood park with aging facilities. The city originally built public recreational facilities here in 1963, which included a park building and wading pool. Instead of purchasing a separate parcel of land for the park, an agreement was entered into with the Robbinsdale Area School District. This agreement allowed the city to locate public recreational facilities on school district property. The city paid for the improvements and conducts ongoing maintenance, similar to how facilities in other city parks are handled. Since the school district owns the land, the agreement also stipulates shared use - where the school uses the facilities for school purposes and the city uses the facilities at other times. 4.4 The wading pool reached the end of its useful life in 2004. In 2005, a play area was built here to replace the wading pool. The school district continued to provide the land and the city continued to pay for the improvements and ongoing maintenance - in keeping with the agreement. Shared use also continued. The 1963 park building remained, likely because it provided a large overhang that provides shade over picnic tables near the play area. The play area is now 20 years old and the shelter is over 60 years old. Both are in poor condition. The 2026 Capital Improvement Plan (Park Improvements) includes funds for a new play area, small picnic shelter and sidewalks in Forest School Park. Staff recommends applying for a 50% grant match to this project. Hennepin County Grant Request $ 200,000 School District Contribution (surfacing) $ 40,000 (estimate) City of Crystal Contribution $ 160,000 (estimate) Total Cost of Improvements $ 400,000 Documentation of the land use agreement between the local government unit and partner organization is required as part of the grant application. Requested City Council Action Staff recommends approval of the attached resolutions: 1.Authorizing a grant application to the Hennepin County Youth Activities Grants for 2026 improvements in Woodland Park. 2.Ratifying the 1962 agreement with the Robbinsdale Area School District; that also authorizes a grant application to the Hennepin County Youth Activities Grants for 2026 improvements in Forest School Park, and updates information related to planned improvements - if the grant application is successful. 4.4 CITY OF CRYSTAL MINNESOTA RESOLUTION NO. 2025-xx AUTHORIZING A GRANT APPLICATION TO THE HENNEPIN COUNTY YOUTH ACTIVITIES GRANTS TO ASSIST IN REPLACING RECREATIONAL FACILITIES IN WOODLAND PARK WHEREAS, the Hennepin County Board of Commissioners, via the Hennepin County Youth Activities Grants, provides capital funds to assist local government units of Hennepin County develop recreational facilities for youth, and WHEREAS, the City of Crystal desires to replace the recreational facilities in Woodland Park in 2026, and NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Crystal: I.The estimated cost of replacing the play area, picnic shelter, basketball court and connecting trails in Woodland Park is $400,000. II.The City of Crystal is requesting a 50% match ($200,000) from Hennepin County Youth Activities Grants and will assume responsibility for providing the remaining funds. III.The City of Crystal will assume 100% of the operation and maintenance costs of the project for the functional life of the facility. Adopted this 2ndth day of September 2025. ______________________________ Julie Deshler, Mayor ATTEST: _______________________________ Chrissy Serres, City Clerk 4.4 Woodland Park Redevelopment DRAFT Concepts 4.4 CITY RESOLUTION NO. 25-xx ISD 281 RESOLUTION NO. LAND USE AGREEMENT FOR PLAY AREA AND PICNIC SHELTER REPLACEMENT AT FOREST SCHOOL WHEREAS, Independent School District No. 281 (hereinafter ISD 281) and the City of Crystal have a long history of working together to provide quality recreation facilities for ISD 281 students and the Crystal community, and WHEREAS, ISD 281 and the City of Crystal currently work together operating the play area and picnic shelter at 7001 48th Avenue North (Forest School), and WHEREAS, on November 20, 1962, the parties entered into an Agreement (the “Agreement”) establishing a joint venture wherein that the City performed certain work to develop recreational facilities and ISD 281 furnished sod at recreational space serving Forest Elementary and Cavanaugh Elementary (the “School Property”); and WHEREAS, the Agreement also designated certain other responsibilities of the parties including maintenance and supervision of the facilities and liability for claims; and WHEREAS, the recreational facilities at the School Property are in poor condition and the parties desire to continue working together to replace the play area, picnic shelter and related facilities (PROJECT); and WHEREAS, in order to fund its share of the PROJECT, the City intends to apply for a grant from the Hennepin County Youth Activities Program; and WHEREAS, provided that the City receives such grant, the parties agree as follows: NOW, THEREFORE BE IT RESOLVED BY THE ISD 281 and the City of Crystal: I. ISD 281 owns the School Property where the PROJECT is located which is currently operated jointly and cooperatively pursuant the Agreement. II. The PROJECT will serve both public school and public recreational purposes. III. The parties hereby ratify the terms of the Agreement, which is attached hereto as Exhibit A, except otherwise modified by this Land Use Agreement, with the exception of the following: a. The obligations in Paragraphs 1, 2, 4, and 6 that have been performed by the City. b. The obligations in Paragraphs 3, 4, and 6 that have been performed by the School IV. ISD 281 will provide funds for play area surfacing for the PROJECT. V. The City will apply for a grant from the Hennepin County Youth Activities Program (the “Grant”) for the PROJECT. VI. If the Grant is received, the City will provide the remaining construction costs and one hundred (100) percent of the ongoing maintenance costs for the PROJECT. 4.4 VII. If the Grant is received, the City will finalize design and construct the PROJECT, including obtaining any necessary bids, hiring contractors and overseeing construction. ISD 281 authorizes the City to perform such work on the School Property. VIII. City agrees that the PROJECT area can be used for school-approved functions at the sole discretion of ISD 281. IX. ISD 281 agrees that the PROJECT area can be used for public recreational purposes when not being used for school-approved functions. CERTIFICATION I hereby certify that the foregoing resolution is a true and correct copy of the resolution presented to and adopted by Independent School District 281 and Crystal City Council at duly authorized meetings, as shown by the minutes of said meetings. Adopted by the City of Crystal this Adopted by ISD 281 this 2nd day of September 2025. 3rd day of September 2025. Julie Deshler Dr. Greta Evams-Becker Mayor School Board Chair ATTEST: Christina Serres ReNae Bowman City Clerk School Board Clerk 4.4 Forest School Redevelopment DRAFT Concepts 4.4 r I AGREEMENT -~ !Jo v £ M. b /2 f.Z, THIS AGREEMENT, Made this ~ C) day of·Augt1:H, 196Z1.., by and between INDEPENDENT SCHOOL DISTRICT NO. 281, ..... - an independent school district organized under the la.ws of the State of Minnesota and hereinafter called the School District, and the CITY OF CRYSTAL, a municipal corporation, hereinafter called the City, WHEREAS, The School Dietrict own• lands in Crystal, Minne ■ota, upon which Cavanagh Elementary School and Forest Ele- mentary School are pre•ently owned and operated for public school purposes and where there is playground space available for recrea- tional facilities which would serve a community purpose, and WHEREAS, The City desires to provide recreational facilities :for community use at auch times as not to interfere with the use of said land for school purposes. NOW, THEREFORE, In consideration of the mutual covenants herein contained and of these presents, it is hereby agreed by and between the parties hereto as follows: 1. Obligations of the City. The City agrees in accord- ance with its plans for the development of recreational facilities on the school properties named above to provide grading, topsoil, plant ma- terials and drainage on said lands in accordance with plans and specifications, which plans and specifications are marked Exhibit "A"• attached hereto and made a part hereof, and to subsequently provide 4.4 apparatus and equipment, aaphalt surfacing, wading pools, shelter building, lighting facilities and such other improvements as are con- tained on the aforeaaid plane and specifications, subject to the right of the school district to relocate the improvements on the Forest School site. Z. Time of Performance. The City agrees to under- take the first phase of the above described improvements conaistina of grading, topsoil, plant materials and subdrainage forthwith and to proceed with the second phase of the improvements which are listed above the following year. 3. Obli2_tioas -of School District. The School Dietrict a.grees to furnish eod on the school lands named above as soon as the school land has been prepared for sodding. 4. Purposes. It ia the intention of the parties hereto to enter into a joint venture for the purpose of providing additional playground facilitiea for the use of both parties subject to the quali- fications contained in thh Agreement. It bas been estimated that the approximate cost of such project to the City for the Cavanagh Schod is $35,100.00 leas the cost of sodding which will be performed by the School District and that the cost of the project for the Forest School ·, will cost approximately $49. 100. 00 less the cost of sodding which will be performed by the School District. 5. Maintenance of Facilities. Each of the parties will be responsible for the maintenance of the projects it furnishes subject to the provision that if the agents of either party or thoae persona per- mitted by either party on the grounds inflict or by omiaaion, permit damage to any of the premises. then such parties eball repair such damage; subject to the exception of ordinary wear and tear. -Z- 4.4 6. Supervision of Work Projecta. The City shall keep the SChool Diatrict Wormed as to the plana, progr••• and develop- ment of the phyaical facilities to be made on the school landa until the ea.me are completely developed in accordance with the attached plans and epeciflcatione. Each of the parties sha.11 appoint an authorhsed representative to constitute a committee for the purpoae of inspecting proposed contract• and bide for the construction and installation of the aforesaid facilities and buildings in order to make certain the rea.aona.ble compliaace of this Agreement. Each of the parties sball designate the name of the peraon, pro.feaaioml or otherwise, who 1hall be responsible to aee that the work on the project• outlined above is performed in accordance with the aDN'8l&&id plans and epeciiicatioi:ie. A deaipated repreaentative of each party shall confer at lea.at annually concerning upkeep and general scheme of operations. 7. Superviaion of Facilltiea. The City shall provide supervision of play and facilitie• during reasonable hours in the sum- mer mentba, while the schools are not in aeaaion, during the winter •katiiig seaeon and such other times ae deemed nece•aary by the City, or its designated agent• a• the result of uaage and circumatances. The School Dietrict agree• to provide for superviaion of facilitie• whenever its agent• or permitteea are making u•• of the faciliti••· The City shall a.dvi•e the School Diatrict from year to year ae to the type• of recreational programs to be offered on school land and the dates that such program• are to be offered and shall maintain lta.on with the School District in order to avoid scheduling conflicting programs. 4.4 8. DUJ"ation anci Terorlnat:lon of Agreement. Thi rlVf UI Agreement aha.11 run for ta11u years and shall automatically be re- newed for one year, from year to year thereafter, unleae either party has given notice to the other at least 90 day• before the annual renewal date of a desire to change or modify this Agreement. Should this Agree- ment be terminated by either party, by mutual agreement, by declaration of invalidity, or for whatever reason, than the City shall have the right to remove ita faciUtie• from the achool land subject to restoring the land to ita orig:lnal condition. Treea or other plant materials fur• Dished 'by the City shall remain the property of the School 01,trict. In. the eveat the City shall elect to remove improvements after the termillation of tbia Agreement, the aa.me aball be removed within 90 days after the date of June 1, following the termination of thia Agree- ment. 9. LlabUity for Claim,. Each of the parties, being, municipal corpora.tioa,, are entitled to governmental immunity, and may rely upon the '8,me. In the event the City should carry public liability in.eurance covering thia project, it may rely upon the same but the taking out of liability insurance by the City aball not obligate the School Diatrict to do the ea.me. The School Dietrict reliea upon it• Group Accident Benefit Plan with the Minneaota High School League and its governmental immunity. The City eball be solely reapoaaible for the expeaae of any claims which occur by reason of the negligent or omitted or faulty maintenance of the•• facilitiea. During auch time as the premiaee and facllltiea are uaed by the City under ita super- vision, the City shall hold the School Diatrict harmleaa from any claims ariaing out of the use of the said premiaea. The School 4.4 ct during such time as the premises and facilities are used by er its supervision ahall hold the City harmless from any claims lg out of the use of said premises . 10. Additional FacWtiee. Nothing in thia Agreement . limit the Sc:hool District from making available additional facili• to the City as may be aeceaaary or adviable from time to time riding th• same are available and do DOt interfere with the use of I land for public school purposes. 11. Benefit. This Agreement shall be binding upon the Ii.ea hereto, their auccessora and aeaigna. IN WITNESS WHEREOF, the undersigned have hereunto i their hands and caused these presents to be executed pursuant to -authority granted to them by their respective School &ard and City •uncil. INDEPENDENT SCHOOL DISTRICT NO. 281 By: ~ ( , (i' ~• {., X:< ) ¥:;;~ r .. •. _ -._... ,? ' f K By: .. L) 4 Sfe""4< ✓ UA:E:"1::= CG~ t C-t-f:t: (4fC v -*L • if --~ --.. CITY OF CRYSTAL By: 1(.:! ~-'--(._._, </24:y <:--&q •• -l, ~) /) ()lt?I By: =-<.-.., /4·_ ~t-{~ 1 lte Manager 4.4 Memorandum DATE: 9/02/2025 TO: Mayor and City Council Adam Bell, City Manager FROM: Jodi Bursheim, Abdo SUBJECT: Consideration of a Resolution Adopting Updated Fund Balance Policy Background Following previous council discussions, it is proposed that the City revise its Fund Balance Policy. The Minnesota Office of the State Auditor (OSA) advises cities to maintain an unreserved fund balance in their general fund, typically ranging from 35% to 50% of operating revenues. This guidance is intended to ensure cities have adequate reserves to address cash flow demands, manage emergencies, and cover unforeseen expenses. These percentages are guidelines and may vary based on each city's unique circumstances and financial strategies. Factors such as revenue stability, expenditure fluctuations, and local economic conditions can influence a city's decision on the optimal fund balance percentage. After review of the City's overall use of fund balance and projected future needs, it is recommended to modify the City policy by reducing the reserve from 45% to 40%. This adjustment aims to maintain cash flow reserves equivalent to 40% of the General Fund budget for the upcoming year. The policy also maintains the ability to transfer surplus fund balance dollars to capital funds in need when deemed appropriate. Resolution Adopting the Fund Balance Policy This resolution formally adopts the revised Fund Balance Policy, reflecting the updated reserve target and ensuring the City's continued ability to effectively manage its financial obligations and priorities. Conclusion It is recommended that the City Council adopt the Fund Balance Policy with the changes noted above. 4.5 City of Crystal Fund Balance Policy Adopted by Resolution 2025-XXX on 9/02/2025 Purpose The purpose of this policy is to establish specific guidelines the City of Crystal (the City) will use to maintain an adequate level of fund balance to provide for cash flow requirements and contingency needs because major revenues, including property taxes and other government aids, are received in the second half of the City's fiscal year. This policy also establishes specific guidelines the City will use to classify fund balances into categories based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in these funds can be spent. The elements of the policy are created by the City for its own purposes and may, therefore, be revised by the City as needed in the future. Classification of Fund Balance/Procedures Non-spendable Fund Balance: This category includes fund balance that cannot be spent because it is either (i) not in spendable form or (ii) is legally or contractually required to be maintained intact. Examples include inventories and prepaid amounts. Restricted Fund Balance: Fund balance should be reported as restricted when constraints are placed on those resources that are either (i) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments or (ii) imposed by law through constitutional provisions or enabling legislation. Committed Fund Balance: Fund balance that can only be used for specific purposes pursuant to constraints imposed by formal action of the City's highest level of decision-making authority. • The committed amounts cannot be used for any other purpose unless the City removes or changes the specified use by taking the same type of action it employed to commit those amounts. • The City Council will, as deemed necessary, commit specific revenue sources for specified purposes by resolution. This formal action must occur prior to the end of the reporting period; however, the amount to be subject to the constraint may be determined in the subsequent period. • To remove the constraint on the specified use of committed resources, the City Council shall pass a resolution. Assigned Fund Balance: Amounts that are constrained by the City's intent to use for specified purposes, but are neither restricted nor committed. Assigned fund balance in the General fund includes amounts that are intended to be used for specific purposes. 4.5 • The City Council has delegated the authority to assign and remove assignments of fund balance amounts for specified purposes to the Finance Director. Unassigned Fund Balance: Unassigned fund balance represents the residual classification for the General fund. This includes amounts that have not been assigned to other funds and that have not been restricted, committed, or assigned to specific purposes within the General fund. The General fund should be the only fund that reports a positive unassigned fund balance amount. • The City will maintain an unassigned fund balance in the General fund of an amount not less than 40% of the next year's budgeted expenditures of the General fund. This will assist in maintaining an adequate level of fund balance to provide for cash flow requirements and contingency needs because major revenues, including property taxes and other government aids, are received in the second half of the City's fiscal year. Monitoring and Reporting • The Finance Director shall monitor the status of fund balances in relation to this policy and present to the City Council. When both restricted and unrestricted resources are available for use, it is the City's policy to first use restricted resources, and then use unrestricted resources as they are needed. • When committed, assigned, or unassigned resources are available for use, it is the City's policy to use resources in the following order: 1) committed, 2) assigned, and 3) unassigned. • A negative residual amount may not be reported for restricted, committed, or assigned fund balances in the General fund. • Each year, a calculation of the General Fund Unassigned Fund Balance will be prepared to determine if there are adequate funds to transfer out of the General Fund for capital needs. The City Manager will review this calculation and make a recommendation to the City Council regarding opportunities to transfer funds to assist with capital needs. 4.5 CITY OF CRYSTAL MINNESOTA RESOLUTION NO. 2025 – XX RESOLUTION AMENDING THE FINANCIAL MANAGEMENT PLAN FOR THE CITY OF CRYSTAL WHEREAS, the City of Crystal approved a proposal by Abdo Financial Solutions (formally AEM), the City’s financial consultant, to develop a comprehensive Financial Management plan that would incorporate all of the city’s financial policies; and WHEREAS, the Financial Management Plan was adopted in November of 2018; and WHEREAS, during several budget discussions and various work sessions over the past year, the City Council expressed an interest in amending the policy governing the fund balance, specifically revising the unassigned fund balance target, currently set at 45%; and WHEREAS, the Minnesota Office of the State Auditor (OSA) advises cities to maintain an unreserved fund balance in their general fund, typically ranging from 35% to 50% of operating revenues, which is intended to ensure cities have adequate reserves to address cash flow demands, manage emergencies, and cover unforeseen expenses; and WHEREAS, after reviewing the City's overall use of fund balance and projected future needs, it is recommended to modify the City policy by adopting a target of 40% of next year's budgeted expenditures of the General Fund. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Crystal, that the Financial Management Plan for the City of Crystal is hereby amended to reflect the updated unassigned fund balance target of 40% to ensure the City's continued ability to effectively manage its financial obligations and priorities. Dated this 2nd day of September 2025. ______________________________ Julie Deshler, Mayor ATTEST: _______________________________ Chrissy Serres, City Clerk 4.5 4.6 4.6 4.6 4.6 4.6 4.6 4.6 4.6 4.6 4.6 4.6 4.6 4.6 4.6 4.6 4.6 4.6 4.6 4.6 4.6 4.6 4.6 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7 COUNCIL STAFF REPORT DATE: August 22, 2025 FROM: Adam R. Bell, City Manager Kimberly Therres, Assistant City Manager/Human Resources Manager TO: Mayor and City Council City Manager Adam R. Bell RE: 2026 Wages and Benefits for Non-represented Employees Background Wages The labor agreements for Local #44 (Police Officers), Local #56 (Police Supervisors) call for a general wage increase of 4.00% for 2026. We are recommending a 4.00% increase for non- represented employees in the City of Crystal, consistent with the settled agreements and with council direction. Health Insurance: (Employer Contribution) Likewise, we are recommending the following contributions for insurance: 2026 (Employer Contribution): 2025 Employer Contribution Towards Premium 2026 Monthly Premium HDHP w/HSA Embedded 2026 Monthly Premium HDHP w/HSA Aggregate 2026 Monthly Premium $30 Copay 2026 Employer Contribution Towards Premium Employee Single $1,163.40 $1,016.80 $1,046.30 $1,363.30 $1,254.63 Employee + Spouse $1,930.06 $2,135.30 $2,196.30 $2,862.30 $2,095.30 Employee + Child(ren) $1,836.56 $2,033.80 $2,091.80 $2,725.80 $1.993.80 Family $2,397.06 $2,643.30 $2,718.30 $3,542.80 $2,603.30 The City has a long-standing practice of providing the same health insurance benefit package to all its employees. Financial Implications The 2026 proposed preliminary budget includes sufficient funds for the proposed wage and benefit settlement. Requested City Council Action Approval of the 2026 proposed wage adjustment and city contribution for insurance increase for all non-represented employees. 4.8 COUNCIL STAFF REPORT DATE: 8/26/2025 FROM: Brad Fortin Parks and Facilities Superintendent TO: Mayor and City Council City Manager Adam R. Bell CC: Jesse Struve RE: Door replacement at Crystal South Fire Station Background The 2025 Capital Improvement Plan includes funding for the replacement of the exterior doors at the South Fire Station. Funding is currently allocated for $50,000.00 for this project. The replacement doors will be constructed of anodized aluminum for long life and will feature a modernized exit crash bar system that brings our building egress up to the current building code. The current doors are original to the building which was constructed in 1974 and are in various stages of failing. Quotes were solicited from three contractors: Brin Glass $27,605.00 Minnetonka Glass $29,0939.00 Twin City Hardware (no bid) Requested City Council Action Staff recommends approval of the door replacement project to be awarded to Brin Glass Company. 4.9 4.9 CITY OF CRYSTAL MINNESOTA RESOLUTION NO. 2025- Authorizing the replacement of doors at the Crystal South fire station WHEREAS, the Crystal City Council is committed to providing and maintaining the quality and operations of its buildings and infrastructure; and WHEREAS, the service doors at the South Fire Station have outlived their useful life; and WHEREAS, there is a need to replace the original doors and hardware; and WHEREAS, the city has obtained quotes for the items. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Crystal as follows: 1. The City of Crystal hereby authorizes the replacement of the doors and hardware at the South Fire Station be awarded to Brin Glass Company for the amount of $27,605. Adopted this 2nd day of September 2025. ______________________________ Julie Deshler, Mayor ATTEST: _______________________________ Chrissy Serres, City Clerk 4.9 COUNCIL STAFF REPORT DATE: August 27, 2025 FROM: Jesse Struve, PE, Director of Public Works / City Engineer TO: Mayor and City Council City Manager Adam R. Bell RE: Award contract for 2025 Sewer Rehabilitation Project Background Staff solicited proposals from three companies for professional services associated with the 2025 Sewer Rehabilitation project. The professional services will include all material and work needed to rehabilitate storm and sanitary sewer lines following recent City specifications development. We included the base bid price for 1855 LF of sanitary sewer rehabilitation. Due to the bids coming in favorably, we are asking the quantities to be adjusted to 3255 LF of sanitary sewer rehabilitation to come closer to the $150,000 mark. There is $200,000 budgeted for this project in the long-term plan. The summary of the not-to-exceed quotes is: Consultant Quote HK Solutions Group (Hydro-Klean) $128,910 Insituform Technologies USA, LLC $136,556 Around $42,000 will be used from the Storm Sewer Enterprise fund to rehabilitate 550 LF of 15” Corrugated Metal Pipe under Broadway Park after it experienced a sinkhole and around $150,000 will be used from the Sanitary Sewer Enterprise fund to rehabilitate approximately 3255 LF of 8” clay sanitary sewer which combined will completely cover the costs for the project. Staff reviewed the proposal from Hydro-Klean and recommend moving forward with Hydro- Klean for the construction services for the 2025 Sewer Rehabilitation Project. Project Location The 2025 Sewer rehabilitation Project will include 52nd Ave N (Vera Cruz Ave N – East Terminus) and Bernard Ave N (Toledo Ave N – Vera Cruz Ave N). Schedule Staff will work with Hydro-Klean to get this project completed as quickly as possible. We anticipate having two meetings with residents prior to the project work in October/November 2025. The tentative schedule is as follows: 4.10 • Award Project – September 2, 2025 • First meeting with residents –September 2025 • Second meeting with residents – Early October 2025 • Start of construction – Late October 2025 Requested City Council Action Staff recommends approval of the motion to award the 2025 Sewer Rehabilitation Project to HK Solutions Group (Hydro-Klean), not to exceed $192,000. 4.10 CITY OF CRYSTAL MINNESOTA RESOLUTION NO. 2025-XX AUTHORIZING PROFESSIONAL SERVICES CONTRACT FOR THE 2025 SEWER REHABILITATION PROJECT WHEREAS, maintaining and reconstructing City infrastructure is an essential service in the City of Crystal; and WHEREAS, the City has developed a long-term plan for reconstruction and rehabilitation of the City’s water, sanitary sewer, and storm water infrastructure; and WHEREAS, the City solicited proposals from contracting firms to procure all material and work required to execute the 2025 Sewer Rehabilitation Project according to City specifications; and WHEREAS, HK Solutions Group (Hydro-Klean) submitted the lowest cost not to exceed amount to design the project. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Crystal as follows: 1.The City of Crystal authorizes the agreement for professional services with HK Solutions Group for the 2025 Sewer Rehabilitation project, not to exceed $192,000. Adopted this 2nd day of September 2025. ______________________________ Julie Deshler, Mayor ATTEST: _______________________________ Chrissy Serres, City Clerk 4.10 COUNCIL STAFF REPORT DATE: Aug. 28, 2025 FROM: City Clerk Chrissy Serres TO: Mayor and City Council CC: City Manager Adam R. Bell Police Chief Brian Hubbard RE: Consideration of civil penalties for violation of liquor license regulations by Cajun 4 Seafood, LLC d/b/a Cajun Kitchen located at 5440 West Broadway Background In December 2024, compliance checks were conducted at licensed liquor establishments by Crystal Police Department. As a result, Cajun Kitchen did not pass this compliance check. An employee of the business received a stay of adjudication and was sentenced to probation in court for the sale of alcohol to a minor, which is a violation of state law and Crystal City Code section 1200.35. This is considered a first violation for this licensee. Staff report attachments: A.Notice of Violation of Liquor Regulations B. Incident Report Requested City Council Action Consistent with Crystal City Code and Resolution No. 2018-160, staff recommends Cajun Kitchen receive a one-day license suspension and civil fine of $750 with city staff determining the date of the license suspension and payment date for the fine. 6.1 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov Aug. 26, 2025 Cajun 4 Seafood, LLC d/b/a Cajun Kitchen Attn: Chao Lin 5440 West Broadway Crystal, MN 55428 VIA EMAIL AND REGULAR MAIL CITY OF CRYSTAL NOTICE VIOLATION OF LIQUOR REGULATIONS The Crystal City Council will meet on Tuesday, Sept. 2, 2025, at 7 p.m. in the council chambers at city hall, 4141 Douglas Dr. N., Crystal, Minnesota, to consider whether action should be taken against your liquor license as a result of an alleged violation of state laws and city ordinances. The alleged violation consists of the illegal sale of alcohol to an underage person, which occurred on or about Dec. 6, 2024, at Cajun Kitchen located at 5440 West Broadway, Crystal, Minnesota. You are notified that you have the right to appear at the city council meeting on Sept. 2, 2025. At the meeting, you may admit or deny the violation. If you admit the violation, you waive your right to a hearing but will be allowed to explain any mitigating circumstances. The council may impose administrative penalties in accordance with Crystal City Code section 1200.35 and Resolution No. 2018-160 (enclosed) that were in effect at the time of the incident. If you deny the violation, you may request a hearing. The city council may, at its option, hold the hearing immediately or refer the matter to a hearing conducted by another person or body at a later date. If you are unable to attend the city council meeting on Sept. 2, 2025, you may agree to any administrative penalties without a hearing by providing the city manager with a letter any time before the meeting that includes a written waiver and acceptance of any administrative penalties. You may also explain any mitigating circumstances in the letter. Any such agreement is subject to approval by the city council. If you do not appear at the city council meeting on Sept. 2, 2025, nor submit a letter to the city manager prior to the meeting, you will be deemed to have admitted the violation and to have waived your right to a hearing, and the city council may impose administrative penalties in accordance with Crystal City Code section 1200.35 and Resolution No. 2018-160. __________________________ Chrissy Serres, City Clerk Attachment A 6.1 562973v4CR225-464 2019 Crystal City Code 1200.31(a) (a) The licensed premises of the business are destroyed by fire or other catastrophe; (b) The licensee ceases business because of death or serious illness; or (c) The business ceases to be lawful for a reason other than a license revocation. The city council shall, in its sole discretion, determine whether such a refund is appropriate, and if so, in what amount. 1200.33. Consumption and display permits. Subd. 1. Permit required. No business establishment or club which does not hold an on-sale intoxicating liquor license may directly or indirectly allow the consumption and display of alcoholic beverages or knowingly serve any liquid for the purpose of mixing with intoxicating liquor without first having obtained a permit from the commissioner. Rental of a public facility does not make the city or the facility a “business establishment” for purposes of this section. The city council must consent to all permits issued by the commissioner pursuant to Minnesota Statutes, section 340A.414, subdivision 5. Subd. 2. Additional fees. There is imposed upon holders of permits issued pursuant to Minnesota Statutes, section 340A.414 an additional fee of $300 per annum. The fee must be paid to the city finance director on or before March 31 of each year and a receipt given thereof, provided, however, upon commencement of a new permit period under the state permit, if a portion of the year has elapsed when payment is made, a pro rata fee may be paid but no such pro rata fee may be less than $150. In computing the fee, an unexpired fraction of a month is counted as one month. The receipt must be posted in some conspicuous place upon the premises alongside the state permit. Subd. 3. Inspections. A business establishment or club issued a permit shall be open for inspection pursuant to Minnesota Statutes, section 340A.414, subdivision 7. Subd. 4. Hours of consumption and display. The hours of consumption and display of intoxicating liquor are those specified in section and Minnesota Statutes, section 340A.414. 1200.35. Conditions of license; penalties. Subd. 1. Conditions of license. The failure of a licensee to meet any one of the conditions of the license specified below shall result in the application of penalties as provided in this subsection. (a) Within 90 days after employment, every person selling or serving liquor in an establishment which has an on-sale license shall receive training regarding the selling or serving of liquor to customers. The training shall be provided by an organization approved by the city council. Proof of training shall be provided by the licensee. 6.1 562973v4CR225-464 2019 Crystal City Code 1200.35, Subd. 1(b) (b) Every licensee is responsible for the conduct of the place of business and the conditions of sobriety and order in it. The act of any employee on the licensed premises is deemed the act of the licensee as well, and the licensee shall be liable for all penalties provided by this Crystal city code and the law equally with the employee. (c) Every licensee shall allow any peace officer, health officer, city employee, or any other person designated by the city council to conduct compliance checks and to otherwise enter, inspect, and search the premises of the licensee during business hours and after business hours during the time when customers remain on the premises without a warrant. (d) No on-sale establishment shall display or sell liquor to the public during hours when the sale of liquor is prohibited. (e) Compliance with financial responsibility requirements of state law and of this Crystal city code is a continuing condition of any license. (f) Compliance with all laws, rules, and regulations related to the retail sale of intoxicating liquors, including the provisions of Minnesota Statutes, chapters 297F and 340A, Minnesota Rules, chapter 7515, and the Crystal city code. Subd. 2. Penalties. (a) Misdemeanors. A person who violates this section is guilty of a misdemeanor unless otherwise provided by law. (b) Presumptive revocation. The city council may revoke a license, following, notice and an opportunity to be heard, on the first violation for the following types of offenses: (1) Commission of a felony by licensee or an employee of licensee related to the licensed activity authorized by this chapter and Minnesota Statutes, chapter 340A. (2) The sale of alcoholic beverages on the licensed premises while a license is under suspension or revocation. (c) Administrative civil penalties. If a licensee or an employee of a licensee is found to have violated any of the provisions of state law or this section, the city council may impose an administrative penalty, including a civil fine and/or suspension of the license, in such amounts and for such periods as set out Crystal city code, appendix IV. 6.1 562973v4CR225-464 2019 Crystal City Code 1200.35, Subd. 3 Subd. 3. Presumptions regarding administrative penalties. The administrative penalties described in subdivision 2 of this subsection and set out in Crystal city code, appendix IV are the presumed sanctions for the violations indicated. In the event of any license suspension imposed under this section, the city council may select which days a suspension will be served. Notwithstanding any of the provisions contained herein, a license may be revoked for any violation of this section when in the judgment of the city council it is appropriate to do so. The city council may impose lesser penalties under subdivision 2 of this subsection when in the judgment of the city council it is appropriate to do so. Other mandatory requirements may be made of the establishment including, but not limited to, meetings with the police department staff to present a plan of action to assure any observed problems will not continue, mandatory education sessions with crime prevention staff, or other actions that the city council deems appropriate. 1200.37. Hours of sale. Subd. 1. Statutory. The hours of operation and days of sale shall be those set by Minnesota Statutes, section 340A.504, including sales after 1:00 a.m. pursuant to a permit issued by the commissioner, except that the city council may, by resolution or ordinance, provide for more restrictive hours than state law allows. Subd. 2. Consumption prohibited. No person shall consume, nor shall any on-sale licensee permit any consumption of, intoxicating liquor or 3.2 percent malt liquor upon an on-sale licensed premises more than 30 minutes after the time within which intoxicating liquors may be sold. Subd. 3. Display. No on-sale licensee shall permit any glass, bottle, or other container containing intoxicating liquor or 3.2 percent malt liquor to remain upon any table, bar, stool, or other place where customers are served, more than 30 minutes after the time within which intoxicating liquors may be sold. Subd. 4. Vacate premises. No person, other than the licensee and any employee, shall remain on the on-sale licensed premises more than 30 minutes after the time within which intoxicating liquors may be sold. Subd. 5. Penalty. Any violation of this subsection may be grounds for revocation or suspension of the license subject to the terms of this section. 1200.39. Licenses in prohibited locations. No license shall be issued under this section in any place which is prohibited under Minnesota Statutes, section 340A.412, subdivision 3. 1200.41. Temporary on-sale licenses. The city council may issue temporary on-sale licenses for the on- sale of intoxicating liquor to clubs, or charitable, religious or other non-profit organizations in the manner and subject to the conditions specified in Minnesota Statutes, section 340A.404, subdivision 10. The fee for a temporary on-sale license shall be in an amount as provided in Crystal city code, appendix IV. 6.1 6.1 6.1 Involved Data (1) DOB: Age:19 Sex:MALE Race: Ethnicity: License State:Minnesota License Number: Address: Suspects (1) CHEN, WEI YU Arrested (Yes or No):No DOB: Age:53 Sex:FEMALE Race:Asian Ethnicity:UNKNOWN License State:Minnesota License Number: Home Address:6325 VALLEY VIEW RD City:EDINA State:Minnesota Cell Phone:(612)-386-6328 Related Offenses:340A.503.2(1) Liquor-Purchase/Sell/Barter/Furnish/Give to u/21yr (90G GM) Resident Status (Of Your Jurisdiction): Phone: Event 5440 WEST BROADWAY CRYSTAL, Minnesota Description of Incident:COMPLIANCE CHECK Reported Date & Time:12/06/2024 15:46:00 Incident Start Date & Time:12/06/2024 15:46:00 Case Status:PENDING Disposition:FORMAL COMPLAINT ISSUED Body Camera Video (Yes/No):No Prosecutor:- Choose Prosecutor - Case Summary: Exceptional Clearance:NOT APPLICABLE Confidential?:No 1 - Limited Opportunity:No Printed On 08/20/2025 Page 1 of 4 Printed By SETTER, SUSAN Crystal Police Department 4141 Douglas Dr N Crystal , MN 55422 (763) 531-1014 Case #:CY24006206 Incident #: CY24006206 Attachment B 6.1 City: State:Minnesota Zip Code: Height: Weight: Eye Color: Hair Color: P.O. Box: Person Mentioned Data (1) DOB: Age:18 P.O. Box: Offenses (1) 340A.503.2(1) Liquor-Purchase/Sell/Barter/Furnish/Give to u/21yr Offense Status:PENDING Attempted/Completed:Completed Forced Entry:No UCR/NIBRS Code:90G Liquor Law Violations Severity Level:GROSS MISDEMEANOR Reportable (Do Not Change):Yes State Code: Location Type:Restaurant Bias Motivation:NONE Offender Suspected of Using:Not Applicable Cargo Theft: Number of Premises Entered: Weapon Types: Vehicle (0) Property Class: Jurisdiction Recovered: Gun (0) Miscellaneous: ROLL/344/MAIN REPORT Narrative (4) Printed On 08/20/2025 Page 2 of 4 Printed By SETTER, SUSAN Crystal Police Department 4141 Douglas Dr N Crystal , MN 55422 (763) 531-1014 Case #:CY24006206 Incident #: CY24006206 6.1 On 12/6/2024 around 1515 hours, I was working as an undercover officer completing our yearly alcohol and tobacco compliance checks for the city of Crystal. Our decoy was selected and advised to dress and look as he normally would as a 19 year old. and the other underage decoy entered Cajun Kitchen restaurant at 5440 West Broadway and were seated in a booth. Another undercover officer Norberg and I were sat at the booth right next to the decoys. Server WEI YU CHEN asked and what they would like to drink. ordered water where asked for a Coors Light on tap. Server WEI never asked for identification. She then went to the bar, poured the glass of Coors Light and set it down in front of at the table. I then pulled out my police badge and identified myself to WEI. She was very flustered and felt remorse. She willingly gave her identification and said she was so sorry. She was advised to always check identification and to not serve to people under the age of 21 years old. Please forward to the city attorney for charging consideration. 12/12/2024ROLL, LAUREN C 33344 DICKS/369/SENT TO CITY ATTORNEY 12/13/2024 12/13/2024 DICKS/369/SENT TO CITY CLERK 12/13/2024 12/13/2024 T.TOURVILLE/327/CASE CLOSURE 02/13/2025 This case is to be closed arrest. I signed the criminal complaint on 02/13/2025. The suspect, WEI YU CHEN , was charged with: 02/13/2025TOURVILLE, TIMOTHY 33327 Printed On 08/20/2025 Page 3 of 4 Printed By SETTER, SUSAN Crystal Police Department 4141 Douglas Dr N Crystal , MN 55422 (763) 531-1014 Case #:CY24006206 Incident #: CY24006206 6.1 Officer (4) Reporting Officer:12/12/2024 20:44:00ROLL, LAUREN C (33344) Approving Officer:SCHWALBE, NICHOLAS (33322) Reporting Officer:02/13/2025 15:17:00TOURVILLE, TIMOTHY (33327) Approving Officer:UNDERTHUN, PETE (33304) 1.Liquor-Purchase/Sell/Barter/Furnish/Give to u/21yr Minnesota Statute: 340A.503.2(1) The case was assigned to: City of Crystal Attorney Mitchell Stephen Sell City Attorney 1809 Northwestern Avenue Stillwater, MN 55082 (651) 439-2878 Case Closure: Arrest Evidence: NA Evidence Disposition: NA Printed On 08/20/2025 Page 4 of 4 Printed By SETTER, SUSAN Crystal Police Department 4141 Douglas Dr N Crystal , MN 55422 (763) 531-1014 Case #:CY24006206 Incident #: CY24006206 6.1 COUNCIL STAFF REPORT DATE: Aug. 28, 2025 FROM: City Clerk Chrissy Serres TO: Mayor and City Council CC: City Manager Adam R. Bell Police Chief Brian Hubbard RE: Consideration of civil penalties for violation of liquor license regulations by Missy Hope, Inc. d/b/a Hope Liquor located at 111 Willow Bend Background In December 2024, compliance checks were conducted at licensed liquor establishments by Crystal Police Department. As a result, Hope Liquor did not pass this compliance check. An employee of the business has reached a plea settlement to have the case continued for dismissal in court for the sale of alcohol to a minor, which is a violation of state law and Crystal City Code section 1200.35. The conditions are no same or similar violation within one year. This is considered a first violation for this licensee. Staff report attachments: A.Notice of Violation of Liquor Regulations B. Incident Report Requested City Council action Consistent with Crystal City Code and Resolution No. 2018-160, staff recommends Hope Liquor receive a one-day license suspension and civil fine of $750 with city staff determining the date of the license suspension and payment date for the fine. 6.2 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov Aug. 26, 2025 Missy Hope, Inc. d/b/a Hope Liquor Attn: Hope Mulinda 111 Willow Bend Crystal, MN 55428 VIA EMAIL AND REGULAR MAIL CITY OF CRYSTAL NOTICE VIOLATION OF LIQUOR REGULATIONS The Crystal City Council will meet on Tuesday, Sept. 2, 2025, at 7 p.m. in the council chambers at city hall, 4141 Douglas Dr. N., Crystal, Minnesota, to consider whether action should be taken against your liquor license as a result of an alleged violation of state laws and city ordinances. The alleged violation consists of the illegal sale of alcohol to an underage person, which occurred on or about Dec. 6, 2024, at Hope Liquor located at 111 Willow Bend, Crystal, Minnesota. You are notified that you have the right to appear at the city council meeting on Sept. 2, 2025. At the meeting, you may admit or deny the violation. If you admit the violation, you waive your right to a hearing but will be allowed to explain any mitigating circumstances. The council may impose administrative penalties in accordance with Crystal City Code section 1200.35 and Resolution No. 2018-160 (enclosed) that were in effect at the time of the incident. If you deny the violation, you may request a hearing. The city council may, at its option, hold the hearing immediately or refer the matter to a hearing conducted by another person or body at a later date. If you are unable to attend the city council meeting on Sept. 2, 2025, you may agree to any administrative penalties without a hearing by providing the city manager with a letter any time before the meeting that includes a written waiver and acceptance of any administrative penalties. You may also explain any mitigating circumstances in the letter. Any such agreement is subject to approval by the city council. If you do not appear at the city council meeting on Sept. 2, 2025, nor submit a letter to the city manager prior to the meeting, you will be deemed to have admitted the violation and to have waived your right to a hearing, and the city council may impose administrative penalties in accordance with Crystal City Code section 1200.35 and Resolution No. 2018-160. __________________________ Chrissy Serres, City Clerk Attachment A 6.2 562973v4CR225-464 2019 Crystal City Code 1200.31(a) (a) The licensed premises of the business are destroyed by fire or other catastrophe; (b) The licensee ceases business because of death or serious illness; or (c) The business ceases to be lawful for a reason other than a license revocation. The city council shall, in its sole discretion, determine whether such a refund is appropriate, and if so, in what amount. 1200.33. Consumption and display permits. Subd. 1. Permit required. No business establishment or club which does not hold an on-sale intoxicating liquor license may directly or indirectly allow the consumption and display of alcoholic beverages or knowingly serve any liquid for the purpose of mixing with intoxicating liquor without first having obtained a permit from the commissioner. Rental of a public facility does not make the city or the facility a “business establishment” for purposes of this section. The city council must consent to all permits issued by the commissioner pursuant to Minnesota Statutes, section 340A.414, subdivision 5. Subd. 2. Additional fees. There is imposed upon holders of permits issued pursuant to Minnesota Statutes, section 340A.414 an additional fee of $300 per annum. The fee must be paid to the city finance director on or before March 31 of each year and a receipt given thereof, provided, however, upon commencement of a new permit period under the state permit, if a portion of the year has elapsed when payment is made, a pro rata fee may be paid but no such pro rata fee may be less than $150. In computing the fee, an unexpired fraction of a month is counted as one month. The receipt must be posted in some conspicuous place upon the premises alongside the state permit. Subd. 3. Inspections. A business establishment or club issued a permit shall be open for inspection pursuant to Minnesota Statutes, section 340A.414, subdivision 7. Subd. 4. Hours of consumption and display. The hours of consumption and display of intoxicating liquor are those specified in section and Minnesota Statutes, section 340A.414. 1200.35. Conditions of license; penalties. Subd. 1. Conditions of license. The failure of a licensee to meet any one of the conditions of the license specified below shall result in the application of penalties as provided in this subsection. (a) Within 90 days after employment, every person selling or serving liquor in an establishment which has an on-sale license shall receive training regarding the selling or serving of liquor to customers. The training shall be provided by an organization approved by the city council. Proof of training shall be provided by the licensee. 6.2 562973v4CR225-464 2019 Crystal City Code 1200.35, Subd. 1(b) (b) Every licensee is responsible for the conduct of the place of business and the conditions of sobriety and order in it. The act of any employee on the licensed premises is deemed the act of the licensee as well, and the licensee shall be liable for all penalties provided by this Crystal city code and the law equally with the employee. (c) Every licensee shall allow any peace officer, health officer, city employee, or any other person designated by the city council to conduct compliance checks and to otherwise enter, inspect, and search the premises of the licensee during business hours and after business hours during the time when customers remain on the premises without a warrant. (d) No on-sale establishment shall display or sell liquor to the public during hours when the sale of liquor is prohibited. (e) Compliance with financial responsibility requirements of state law and of this Crystal city code is a continuing condition of any license. (f) Compliance with all laws, rules, and regulations related to the retail sale of intoxicating liquors, including the provisions of Minnesota Statutes, chapters 297F and 340A, Minnesota Rules, chapter 7515, and the Crystal city code. Subd. 2. Penalties. (a) Misdemeanors. A person who violates this section is guilty of a misdemeanor unless otherwise provided by law. (b) Presumptive revocation. The city council may revoke a license, following, notice and an opportunity to be heard, on the first violation for the following types of offenses: (1) Commission of a felony by licensee or an employee of licensee related to the licensed activity authorized by this chapter and Minnesota Statutes, chapter 340A. (2) The sale of alcoholic beverages on the licensed premises while a license is under suspension or revocation. (c) Administrative civil penalties. If a licensee or an employee of a licensee is found to have violated any of the provisions of state law or this section, the city council may impose an administrative penalty, including a civil fine and/or suspension of the license, in such amounts and for such periods as set out Crystal city code, appendix IV. 6.2 562973v4CR225-464 2019 Crystal City Code 1200.35, Subd. 3 Subd. 3. Presumptions regarding administrative penalties. The administrative penalties described in subdivision 2 of this subsection and set out in Crystal city code, appendix IV are the presumed sanctions for the violations indicated. In the event of any license suspension imposed under this section, the city council may select which days a suspension will be served. Notwithstanding any of the provisions contained herein, a license may be revoked for any violation of this section when in the judgment of the city council it is appropriate to do so. The city council may impose lesser penalties under subdivision 2 of this subsection when in the judgment of the city council it is appropriate to do so. Other mandatory requirements may be made of the establishment including, but not limited to, meetings with the police department staff to present a plan of action to assure any observed problems will not continue, mandatory education sessions with crime prevention staff, or other actions that the city council deems appropriate. 1200.37. Hours of sale. Subd. 1. Statutory. The hours of operation and days of sale shall be those set by Minnesota Statutes, section 340A.504, including sales after 1:00 a.m. pursuant to a permit issued by the commissioner, except that the city council may, by resolution or ordinance, provide for more restrictive hours than state law allows. Subd. 2. Consumption prohibited. No person shall consume, nor shall any on-sale licensee permit any consumption of, intoxicating liquor or 3.2 percent malt liquor upon an on-sale licensed premises more than 30 minutes after the time within which intoxicating liquors may be sold. Subd. 3. Display. No on-sale licensee shall permit any glass, bottle, or other container containing intoxicating liquor or 3.2 percent malt liquor to remain upon any table, bar, stool, or other place where customers are served, more than 30 minutes after the time within which intoxicating liquors may be sold. Subd. 4. Vacate premises. No person, other than the licensee and any employee, shall remain on the on-sale licensed premises more than 30 minutes after the time within which intoxicating liquors may be sold. Subd. 5. Penalty. Any violation of this subsection may be grounds for revocation or suspension of the license subject to the terms of this section. 1200.39. Licenses in prohibited locations. No license shall be issued under this section in any place which is prohibited under Minnesota Statutes, section 340A.412, subdivision 3. 1200.41. Temporary on-sale licenses. The city council may issue temporary on-sale licenses for the on- sale of intoxicating liquor to clubs, or charitable, religious or other non-profit organizations in the manner and subject to the conditions specified in Minnesota Statutes, section 340A.404, subdivision 10. The fee for a temporary on-sale license shall be in an amount as provided in Crystal city code, appendix IV. 6.2 6.2 6.2 Involved Data (1) DOB: Age:19 Sex:MALE Race: P.O. Box: Suspects (1) MULINDA, HOPE ASIMWE Arrested (Yes or No):Yes DOB: Age:43 Sex:FEMALE Race:Black or African American Ethnicity:NON-HISPANIC License State:Minnesota License Number: Home Address:7396 PARSON AVE N City:OTSEGO State:Minnesota Cell Phone: Related Offenses:340A.503.2(1) Liquor-Purchase/Sell/Barter/Furnish/Give to u/21yr (90G F) Resident Status (Of Your Jurisdiction): Phone: Event 111 WILLOW BND CRYSTAL, Minnesota Description of Incident:COMPLIANCE CHECK Reported Date & Time:12/06/2024 14:33:00 Incident Start Date & Time:12/06/2024 14:33:00 Case Status:ARREST OF ADULT/ADULT AND JUVENILE Disposition:FORMAL COMPLAINT ISSUED Body Camera Video (Yes/No):No Prosecutor:- Choose Prosecutor - Case Summary: Exceptional Clearance:NOT APPLICABLE Confidential?:No 1 - Limited Opportunity:No Printed On 08/28/2025 Page 1 of 4 Printed By STAHLKE, CLAUDIA Crystal Police Department 4141 Douglas Dr N Crystal , MN 55422 (763) 531-1014 Case #:CY24006204 Incident #: CY24006204 Attachment B 6.2 Offenses (1) 340A.503.2(1) Liquor-Purchase/Sell/Barter/Furnish/Give to u/21yr Offense Status:ARREST OF ADULT/ADULT AND JUVENILE Attempted/Completed:Completed Forced Entry:No UCR/NIBRS Code:90G Liquor Law Violations Severity Level:GROSS MISDEMEANOR Reportable (Do Not Change):Yes State Code: Location Type:Liquor Store Bias Motivation:NONE Offender Suspected of Using:Not Applicable Cargo Theft: Number of Premises Entered: Weapon Types: Vehicle (0) Property Class: Jurisdiction Recovered: Gun (0) Miscellaneous: ROLL/344/MAIN REPORT PRELIMINARY PARAGRAPH On 12/6/2024 around 1400 hours, I was working as an undercover officer to complete the yearly alcohol and tobacco compliance checks. Our selected decoy, was advised to come dressed as he normally would as a 19-year-old. walked into Hope Liquor located at 111 Willow Bend in Crystal and selected a six pack of Busch Light in a bottle. I was inside at this point to witness, and watched him take the beer up to the counter. The owner and only clerk at the time, HOPE ASIMWE MULINDA scanned the beer for $9.98 where she then never asked for identification. She advised of the price, and he then handed over a $10 bill. She gave him two cents in change and told him to have a good day. 12/12/2024ROLL, LAUREN C 33344 Narrative (4) Printed On 08/28/2025 Page 2 of 4 Printed By STAHLKE, CLAUDIA Crystal Police Department 4141 Douglas Dr N Crystal , MN 55422 (763) 531-1014 Case #:CY24006204 Incident #: CY24006204 6.2 then walked out the door with the purchased alcohol. I then took out my police badge and identified myself. I advised HOPE that she had failed the compliance check, and that the male was underage. She looked at me and sighed heavily as it seemed she then recognized me from a previous report call. Sergeant Albers then came back into the store at the time to return the alcohol and retrieved our $10 bill from HOPE. I took a photo of the product and uploaded it to RMS. Please forward to city attorney for charging considerations. DICKS/369/SENT TO CITY ATTORNEY 12/13/2024 12/13/2024 DICKS/369/SENT TO CITY CLERK 12/13/2024 12/13/2024 T.TOURVILLE/327/CASE CLOSURE 01/08/2025 This case is to be closed arrest. I signed the criminal complaint on 01/07/2025 at 1505 hours. The suspect, HOPE ASIMWE MULINDA , was charged with: •Liquor-Purchase/Sell/Barter/Furnish/Give to u/21yr Minnesota Statute: 340A.503.2(1) The case was assigned to: K. Alexis McKim 1809 Northwestern Avenue Stillwater, MN 55082 (651) 439-2878 01/08/2025TOURVILLE, TIMOTHY 33327 Printed On 08/28/2025 Page 3 of 4 Printed By STAHLKE, CLAUDIA Crystal Police Department 4141 Douglas Dr N Crystal , MN 55422 (763) 531-1014 Case #:CY24006204 Incident #: CY24006204 6.2 Officer (4) Reporting Officer:12/12/2024 20:21:00ROLL, LAUREN C (33344) Approving Officer:SCHWALBE, NICHOLAS (33322) Reporting Officer:01/08/2025 06:19:00TOURVILLE, TIMOTHY (33327) Approving Officer:UNDERTHUN, PETE (33304) Case Closure: Arrest Evidence: None listd Evidence Disposition: NA Printed On 08/28/2025 Page 4 of 4 Printed By STAHLKE, CLAUDIA Crystal Police Department 4141 Douglas Dr N Crystal , MN 55422 (763) 531-1014 Case #:CY24006204 Incident #: CY24006204 6.2 COUNCIL STAFF REPORT DATE: Aug. 28, 2025 FROM: City Clerk Chrissy Serres TO: Mayor and City Council CC: City Manager Adam R. Bell Police Chief Brian Hubbard RE: Consideration of civil penalties for violation of liquor license regulations by Tequilatown, LLC d/b/a Tequilatown Authentic Mexican Cuisine & Bar located at 99 Willow Bend Background In December 2024, compliance checks were conducted at licensed liquor establishments by Crystal Police Department. As a result, Tequilatown Authentic Mexican Cuisine & Bar did not pass this compliance check. An employee of the business has pleaded guilty in court to the sale, received a stay of adjudication and was sentenced to probation in court for the sale of alcohol to a minor, which is a violation of state law and Crystal City Code section 1200.35. This is considered a first violation for this licensee. Staff report attachments: A.Notice of Violation of Liquor Regulations B. Incident Report Requested City Council Action Consistent with Crystal City Code and Resolution No. 2018-160, staff recommends Tequilatown Authentic Mexican Cuisine & Bar receive a one-day license suspension and civil fine of $750 with city staff determining the date of the license suspension and payment date for the fine. 6.3 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov Aug. 26, 2025 Tequilatown, LLC d/b/a Tequilatown Authentic Mexican Cuisine & Bar Attn: Fabian Morales Blanco and Moises Morales Blanco 99 Willow Bend Crystal, MN 55428 VIA EMAIL AND REGULAR MAIL CITY OF CRYSTAL NOTICE VIOLATION OF LIQUOR REGULATIONS The Crystal City Council will meet on Tuesday, Sept. 2, 2025, at 7 p.m. in the council chambers at city hall, 4141 Douglas Dr. N., Crystal, Minnesota, to consider whether action should be taken against your liquor license as a result of an alleged violation of state laws and city ordinances. The alleged violation consists of the illegal sale of alcohol to an underage person, which occurred on or about Dec. 6, 2024, at Tequilatown Authentic Mexican Cuisine & Bar located at 99 Willow Bend, Crystal, Minnesota. You are notified that you have the right to appear at the city council meeting on Sept. 2, 2025. At the meeting, you may admit or deny the violation. If you admit the violation, you waive your right to a hearing but will be allowed to explain any mitigating circumstances. The council may impose administrative penalties in accordance with Crystal City Code section 1200.35 and Resolution No. 2018-160 (enclosed) that were in effect at the time of the incident. If you deny the violation, you may request a hearing. The city council may, at its option, hold the hearing immediately or refer the matter to a hearing conducted by another person or body at a later date. If you are unable to attend the city council meeting on Sept. 2, 2025, you may agree to any administrative penalties without a hearing by providing the city manager with a letter any time before the meeting that includes a written waiver and acceptance of any administrative penalties. You may also explain any mitigating circumstances in the letter. Any such agreement is subject to approval by the city council. If you do not appear at the city council meeting on Sept. 2, 2025, nor submit a letter to the city manager prior to the meeting, you will be deemed to have admitted the violation and to have waived your right to a hearing, and the city council may impose administrative penalties in accordance with Crystal City Code section 1200.35 and Resolution No. 2018-160. __________________________ Chrissy Serres, City Clerk Attachment A 6.3 562973v4CR225-464 2019 Crystal City Code 1200.31(a) (a) The licensed premises of the business are destroyed by fire or other catastrophe; (b) The licensee ceases business because of death or serious illness; or (c) The business ceases to be lawful for a reason other than a license revocation. The city council shall, in its sole discretion, determine whether such a refund is appropriate, and if so, in what amount. 1200.33. Consumption and display permits. Subd. 1. Permit required. No business establishment or club which does not hold an on-sale intoxicating liquor license may directly or indirectly allow the consumption and display of alcoholic beverages or knowingly serve any liquid for the purpose of mixing with intoxicating liquor without first having obtained a permit from the commissioner. Rental of a public facility does not make the city or the facility a “business establishment” for purposes of this section. The city council must consent to all permits issued by the commissioner pursuant to Minnesota Statutes, section 340A.414, subdivision 5. Subd. 2. Additional fees. There is imposed upon holders of permits issued pursuant to Minnesota Statutes, section 340A.414 an additional fee of $300 per annum. The fee must be paid to the city finance director on or before March 31 of each year and a receipt given thereof, provided, however, upon commencement of a new permit period under the state permit, if a portion of the year has elapsed when payment is made, a pro rata fee may be paid but no such pro rata fee may be less than $150. In computing the fee, an unexpired fraction of a month is counted as one month. The receipt must be posted in some conspicuous place upon the premises alongside the state permit. Subd. 3. Inspections. A business establishment or club issued a permit shall be open for inspection pursuant to Minnesota Statutes, section 340A.414, subdivision 7. Subd. 4. Hours of consumption and display. The hours of consumption and display of intoxicating liquor are those specified in section and Minnesota Statutes, section 340A.414. 1200.35. Conditions of license; penalties. Subd. 1. Conditions of license. The failure of a licensee to meet any one of the conditions of the license specified below shall result in the application of penalties as provided in this subsection. (a) Within 90 days after employment, every person selling or serving liquor in an establishment which has an on-sale license shall receive training regarding the selling or serving of liquor to customers. The training shall be provided by an organization approved by the city council. Proof of training shall be provided by the licensee. 6.3 562973v4CR225-464 2019 Crystal City Code 1200.35, Subd. 1(b) (b) Every licensee is responsible for the conduct of the place of business and the conditions of sobriety and order in it. The act of any employee on the licensed premises is deemed the act of the licensee as well, and the licensee shall be liable for all penalties provided by this Crystal city code and the law equally with the employee. (c) Every licensee shall allow any peace officer, health officer, city employee, or any other person designated by the city council to conduct compliance checks and to otherwise enter, inspect, and search the premises of the licensee during business hours and after business hours during the time when customers remain on the premises without a warrant. (d) No on-sale establishment shall display or sell liquor to the public during hours when the sale of liquor is prohibited. (e) Compliance with financial responsibility requirements of state law and of this Crystal city code is a continuing condition of any license. (f) Compliance with all laws, rules, and regulations related to the retail sale of intoxicating liquors, including the provisions of Minnesota Statutes, chapters 297F and 340A, Minnesota Rules, chapter 7515, and the Crystal city code. Subd. 2. Penalties. (a) Misdemeanors. A person who violates this section is guilty of a misdemeanor unless otherwise provided by law. (b) Presumptive revocation. The city council may revoke a license, following, notice and an opportunity to be heard, on the first violation for the following types of offenses: (1) Commission of a felony by licensee or an employee of licensee related to the licensed activity authorized by this chapter and Minnesota Statutes, chapter 340A. (2) The sale of alcoholic beverages on the licensed premises while a license is under suspension or revocation. (c) Administrative civil penalties. If a licensee or an employee of a licensee is found to have violated any of the provisions of state law or this section, the city council may impose an administrative penalty, including a civil fine and/or suspension of the license, in such amounts and for such periods as set out Crystal city code, appendix IV. 6.3 562973v4CR225-464 2019 Crystal City Code 1200.35, Subd. 3 Subd. 3. Presumptions regarding administrative penalties. The administrative penalties described in subdivision 2 of this subsection and set out in Crystal city code, appendix IV are the presumed sanctions for the violations indicated. In the event of any license suspension imposed under this section, the city council may select which days a suspension will be served. Notwithstanding any of the provisions contained herein, a license may be revoked for any violation of this section when in the judgment of the city council it is appropriate to do so. The city council may impose lesser penalties under subdivision 2 of this subsection when in the judgment of the city council it is appropriate to do so. Other mandatory requirements may be made of the establishment including, but not limited to, meetings with the police department staff to present a plan of action to assure any observed problems will not continue, mandatory education sessions with crime prevention staff, or other actions that the city council deems appropriate. 1200.37. Hours of sale. Subd. 1. Statutory. The hours of operation and days of sale shall be those set by Minnesota Statutes, section 340A.504, including sales after 1:00 a.m. pursuant to a permit issued by the commissioner, except that the city council may, by resolution or ordinance, provide for more restrictive hours than state law allows. Subd. 2. Consumption prohibited. No person shall consume, nor shall any on-sale licensee permit any consumption of, intoxicating liquor or 3.2 percent malt liquor upon an on-sale licensed premises more than 30 minutes after the time within which intoxicating liquors may be sold. Subd. 3. Display. No on-sale licensee shall permit any glass, bottle, or other container containing intoxicating liquor or 3.2 percent malt liquor to remain upon any table, bar, stool, or other place where customers are served, more than 30 minutes after the time within which intoxicating liquors may be sold. Subd. 4. Vacate premises. No person, other than the licensee and any employee, shall remain on the on-sale licensed premises more than 30 minutes after the time within which intoxicating liquors may be sold. Subd. 5. Penalty. Any violation of this subsection may be grounds for revocation or suspension of the license subject to the terms of this section. 1200.39. Licenses in prohibited locations. No license shall be issued under this section in any place which is prohibited under Minnesota Statutes, section 340A.412, subdivision 3. 1200.41. Temporary on-sale licenses. The city council may issue temporary on-sale licenses for the on- sale of intoxicating liquor to clubs, or charitable, religious or other non-profit organizations in the manner and subject to the conditions specified in Minnesota Statutes, section 340A.404, subdivision 10. The fee for a temporary on-sale license shall be in an amount as provided in Crystal city code, appendix IV. 6.3 6.3 6.3 Involved Data (2) DOB: Age:19 Suspects (1) CAZARES ACEVES, JONATHAN ANDRES Arrested (Yes or No):No DOB: Age:32 Sex:MALE Race:White Ethnicity:HISPANIC License State:Minnesota License Number: Home Address:6310 MEDICINE LAKE RD Apartment:221 City:CRYSTAL State:Minnesota Zip Code:55427 Cell Phone: Height: Weight: Eye Color: Related Offenses:340A.503.2(1) Liquor-Purchase/Sell/Barter/Furnish/Give to u/21yr (90G GM) Resident Status (Of Your Jurisdiction): Phone: Event 99 Willow Bend CRYSTAL, Minnesota Description of Incident:COMPLIANCE CHECK Reported Date & Time:12/06/2024 16:37:00 Incident Start Date & Time:12/06/2024 00:00:00 Case Status:ARREST OF ADULT/ADULT AND JUVENILE Disposition:FORMAL COMPLAINT ISSUED Body Camera Video (Yes/No):No Prosecutor:- Choose Prosecutor - Case Summary: Exceptional Clearance:NOT APPLICABLE Confidential?:No 1 - Limited Opportunity:No Printed On 08/20/2025 Page 1 of 5 Printed By SETTER, SUSAN Crystal Police Department 4141 Douglas Dr N Crystal , MN 55422 (763) 531-1014 Case #:CY24006208 Incident #: CY24006208 Attachment B 6.3 Sex:MALE Race: Ethnicity: License State:Minnesota License Number: Address: City: State:Minnesota Zip Code: Height: Weight: Eye Color: Hair Color: P.O. Box: TEQUILA TOWN Address: City:CRYSTAL State:Minnesota Zip Code:55422 Location Description:99 Willow Bend Related Offense:340A.503.2(1) Liquor-Purchase/Sell/Barter/Furnish/Give to u/21yr (90G GM) Organization Type:Business Witness Data (1) DOB: Age:18 Sex:FEMALE Race: Ethnicity: License State:Minnesota License Number: Cell Phone: Address: City: State:Minnesota Zip Code: Height: Weight: Eye Color: Hair Color: P.O. Box: Data (2) Suite: Printed On 08/20/2025 Page 2 of 5 Printed By SETTER, SUSAN Crystal Police Department 4141 Douglas Dr N Crystal , MN 55422 (763) 531-1014 Case #:CY24006208 Incident #: CY24006208 6.3 Offenses (1) 340A.503.2(1) Liquor-Purchase/Sell/Barter/Furnish/Give to u/21yr Offense Status:PENDING Attempted/Completed:Completed Forced Entry:No UCR/NIBRS Code:90G Liquor Law Violations Severity Level:GROSS MISDEMEANOR Reportable (Do Not Change):Yes State Code: Location Type:Restaurant Bias Motivation:NONE Offender Suspected of Using:Not Applicable Cargo Theft: Number of Premises Entered: Weapon Types: Vehicle (0) Property Class: Jurisdiction Recovered: Gun (0) Miscellaneous: ALBERS/305/MAIN REPORT PRELIMINARY PARAGRAPH: On 12/6/2024 at approximately 1637 hours, Officer Robles and I conducted compliance checks for alcohol at Tequila Town, 99 Willow Bend. Also with us were two minors, and they were identified as and . Before conducting the compliance checks, we confirmed that they only had their identification and the money that we provided them. Also, we took photographs of and driver's licenses and took a photograph of since he was the one directed to purchase the alcohol. Those photographs are included with the report. 12/10/2024ALBERS, JAKE 33305 Narrative (3) Printed On 08/20/2025 Page 3 of 5 Printed By SETTER, SUSAN Crystal Police Department 4141 Douglas Dr N Crystal , MN 55422 (763) 531-1014 Case #:CY24006208 Incident #: CY24006208 6.3 OFFICER ACTIONS: Officer Robles entered Tequila Town and was seated at a table. and entered shortly after us and were seated at a table nearby. I could see the table and watch as they placed their orders for beverages. I observed the server, who was later identified as JONATHAN ANDRES CAZARES ACEVES , take the order and walk over to the bar. He then poured two glasses of water and set it down. Then he went behind the bar and poured a tap beer in a mug-style glass. He walked back over to the glasses with water and picked them all up. CAZARES ACEVES then approached the table where and were sitting and placed a water in front of . He then placed a water and the mug of tap beer in front of . After serving the alcohol, CAZARES ACEVES then turned and walked away from the table which completed the service. I approached CAZARES ACEVES, who was now behind the bar, identified myself as a police officer, and advised that he had just served a minor. CAZARES ACEVES dropped his head and shook it side to side. He then stated that it had been busy. Officer Robles asked for his driver's license and phone number, and he provided it. stated that CAZARES ACEVES had never asked for his identification before he was served alcohol. DISPOSITION: Please forward to the city attorney for charging consideration of 340A.503.2(1). The offense was observed by officers in plain clothes. DICKS/369/SENT TO CITY ATTORNEY 12/10/2024 12/10/2024 Printed On 08/20/2025 Page 4 of 5 Printed By SETTER, SUSAN Crystal Police Department 4141 Douglas Dr N Crystal , MN 55422 (763) 531-1014 Case #:CY24006208 Incident #: CY24006208 6.3 Officer (2) Reporting Officer:12/09/2024 19:57:00ALBERS, JAKE (33305) Approving Officer:ALBERS, JAKE (33305) DICKS/369/SENT TO CITY CLERK 12/13/2024 12/13/2024 Printed On 08/20/2025 Page 5 of 5 Printed By SETTER, SUSAN Crystal Police Department 4141 Douglas Dr N Crystal , MN 55422 (763) 531-1014 Case #:CY24006208 Incident #: CY24006208 6.3