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HomeMy WebLinkAboutCouncil Information Memorandum 03-28-1997I 9", MARCH 28, 1997 UPCOMING MEETINGS AND EVENTS 1. COUNCIL MEETING SCHEDULE: NOTE: Ward 1 Councilmember Tim Bildsoe meets with residents and receives their comments in the Administration Library, beginning at 6:00 p.m. before each Council meeting. APRIL 2 5:30 P.M. COUNCIL PHOTOS Medicine Lake Room APRIL 2 7:00 P.M. REGULAR COUNCIL MEETING Council Chambers APRIL 9 7:00 P.M. BOARD OF REVIEW Council Chambers APRIL 16 7:00 P.M. REGULAR COUNCIL MEETING Council Chambers 2. OPEN HOUSE ON RIDGEMOUNT AVENUE STREET RECONSTRUCTION AND TRAIL DEVELOPMENT, MONDAY, M4RCH31, 5:00 P.M., City Council Chambers. 3. COUNCIL SUB -COMMITTEE ON THE CITY CENTER, WEDNESDAY, APRIL 2, 5:30 P.M., Bass Lake Room. 4. HUMAN RIGHTS COMMISSION, THURSDAY, APRIL 3, 7:30 P.M., Medicine Lake Room. Agenda is attached (M-4) 5. PLANNING COMMISSION, TUESDAY, APRIL 8, 7:00 P.M., Council Chambers. 6. ENVIRONMENTAL QUALITY COMMITTEE, TUESDAY, APRIL 8, 7:00 P.M., Hadley Lake Room. N CITY COUNCIL INFORMATION MEMO March 28, 1997 Page 2 7. COUNCIL SUB -COMMITTEE ON TRANSIT, WEDNESDAY, APRIL 9, 5:30 P.M., Medicine Lake Room. 8. PRAC, THURSDAY, APRIL 10, 7:00 P.M., Council Chambers. 9. MEETING CALENDARS — March, April, and May meeting calendars are attached. (M-9) 1. ADVISORY COMMITTEE RESIGNATION Attached is a letter of resignation from Paul Liebman, Ward 1 representative on the Environmental Quality Committee, effective April 1. 2. MINUTES a. Communities in Collaboration Council, February 20, 1997. (1--2a) b. CONECT Collaborative Board, March, 1997 meeting. (I -2b) 3. STAFFREPORTS a. Notice from City Communications Coordinator Helen LaFave of the restoration of coverage of other cities' council meetings on Channel 37. Also attached is the revised schedule of programming on Channel 37. (1--3a) b. Comparison of the City hall extended hours program, first quarter 1996 V5. 1997. (I -3b) 4. NEWSARTICLES, RELEASES, PUBLICATIONS, ETC. a. Notice of a Minnehaha Creek Watershed District public hearing on Thursday, April 10, to determine whether to order the Southwest Calhoun Subwatershed Project. (1--4a) b. Association of Metropolitan Municipalities March newsletter. (I -4b) c. MLC Operating Committee update on legislative activity of interest to MLC members. (I -4c) 5 CITIZEN COMMUNICATIONS POLICY- CORRESPONDENCE a. Letter to Jane Larson from Finance Director Dale Hahn responding to questions about a special assessment levied against Christopher and Kimberly Loew. The original Larson correspondence is attached. (I -5a) CITY COUNCIL INFORMATION MEMO March 28, 1997 Page 3 b. Letter to Eunice and Les Bottem from Community Development Director Anne Hurlburt responding to a letter about the proposed Gramercy Park development. The original Bottem correspondence is attached. (I -Sb) A status report on the most recent correspondence is attached. 6. CORRESPONDENCE a. Letter to Hennepin County Librarian Teresa Bonner from Mayor Tierney offering congratulations on the 75`h anniversary of the Hennepin County Library. (I -6a) 7. FRIDAY FAX, the League of Minnesota City's weekly update on legislative activity. (1-7) Plymouth Human Rights Commission April 3,1997 Agenda I. Call to Order II. Approval of Agenda III. Approval of Minutes IV. Old Business A. Calendar of Events/ 1997 Work Plan Review B. Random Acts of Kindness C. Regional School Workshop—May 6, 8, or 9 D. Community Education Plan/Newsletter V. New Business VI. For Information A. Day of Remembrance—May 4, 1997 B. City Code/bylaws Change—Scheduled for April 16 agenda C. Institute on Race and Poverty Seminar—April 26 D. Information from Wilmar HRC TWO ti 00 h N O� C4 C/) i d' ti 00 F � r 'c3� a.ero, i �i bcd I .a�� QUI :SFOj'I °E j Lj M ce 0 .� 'bSS g'J 166 E a_ nil';OAU < OmF ZJ- g ib i , `�. � , � � it � C �,gl.. 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L6 �a N b M O I N M I b ti 00 N N v� ::D U io ofcn Nl- 00 166 Z j U mo �HUC7 E Ei ,O U UAV UQ�'. �� I iZt�i�j-Y 'F in z LW I ezv � o z 8 w'. $ �'•' � In ..] I� fiva�oN� 2ZgI�Q�iV7� i nH fA^x�H IZO EI� Ns U eeU33� 80 011!121 80, I) OzF) ! ri h N a u A � hl ar � i0 U E E F1^?=r '<Co3ev a.e � L.0 Nw�i Fj nMpg NI=rn i ^I 00 _ 7 �i O I n Anorn.e•:s it Uw A ?mrnvnn.l Lumavl L,6i,a hrnwhip ?COQ Metropolitan Centre Telephone - d 12 • 3-10.79; I 333 South Seventh Street Fax • 61 _ 340.79W N6nneapok MN 5540: . R I D E R B E N N E T T Paul F. Liebman E G A N& A R U N D E L (6(2)340-8972 pflicbma@riderlaw.com riderlaw.com March 21, 1997 Mr. Martin Frank 11525 52nd Avenue North Plymouth, MN 55442 Re: The City of Plymouth Environmental Quality Committee Dear Martin: It is with mixed emotions that I must inform you that I will be resigning from the City of Plymouth Environmental Quality Committee, effective April 1, 1997. I have accepted a job with Koch Industries, Inc. and will be relocating with my family to Wichita, Kansas. Although I am extremely excited about the job, which presents a wonderful opportunity for my family and me, I am genuinely sad that I will have to resign from the Environmental Quality Committee. I have enjoyed the meetings and activities of the committee immensely. In particular, I hope the committee continues with its efforts regarding the Plymouth Business Environmental Partnership. I think that the effort is one of the single most important ways in which the City of Plymouth can improve its environmental quality. Please express my best wishes to everyone on the committee, and best of luck with the future.. PFI cc: David Shea Bob Swanson Rita O'Donnell Bridget Jodell Jeffrey Johnson Shane Missaghi Ginny Black Very truly yours, RIDER, BENNETT, EGAN & ARUNDEL, LLP By— Paul F. Liebman 4 *4,p COMMUNITIES IN COLLABORATION COUNCIL jZ MINUTES - February 20,1997 Present: Brian Beniek, LaDonna Hoy, Joy Tierney, Barbara Struffert, Karen Parks, Signe Hillestad, Joe Manion, Carol Vannelli, Kris Korsmo, Nathan Seely, Ramona Steadman, Ellen Rusin, Jill Kohler, Michael Lee, Jim Johnson, Dwight Johnson, Paul Beilfuss, Barbara Carlson Visitors: Jim Schaffer, Bob Hagman Excused: Robin Maynard, Jim Brandl, Russ Horsch, Mandy Little, Charlene Barghini, Bob Ambrose Absent: Steve Mumma, Linda Koblick, Frank Larkin, Bill Albertson, Mary Anne Young CONGRATULATIONS - THIS WAS A RECORD ATTENDANCE FOR US! IF WE EVER HAVE 25 OR MORE PRESENT - I WILL MAKE THE COUNCIL A KRANSE KAKE! The meeting was called to order by chair Joy Tierney. Minutes were approved. We heard an exciting presentation by Bob Hagman, volunteer for the YMCA. He took us on a journey, "A Day In The Life Of The Y". It was pretty exhausting and -- enlightening to hear all of the activities, programs and numbers of people involved in the Y each day. We heard that the Y stresses the character traits of respect, responsibility, honesty and caring in all that they do. Their goal is to build strong kids, families and community. The Y opens at 5:30 a.m. They provide extended childcare for 100 kids each day and afterschool care for another 100. 2600 kids visit Camp Christmas Tree each summer, learning teamwork & self confidence. The Y is the largest provider of camping experiences. They work hard reaching out to youth, senior citizens and the disabled. They are the largest private provider of social services as well as the largest provider of swimming instruction. The Y offers values oriented youth sports and Youth In Government programs. They provide Single Parent Support Groups and the mentor Co -Pilot program. Jim S. reminded us of the Co -Pilot program that now has 30 kids on the waiting list. SCHOOL START TIMES Paul B. brought us up to date on this issue. He reminded us that it is important to know that the legislature does not fund transportation. Our current 3 tier system is very efficient. 52-53 buses are used each day and we will add 3 buses next year at a cost of $35,000 each. A committee has studied this issue and put safety as its #1 priority. The School Board does not want to spend more than necessary. As we compare ourselves to Edina we must be aware that Edina covers 7 sq. miles while we must cover 40. The CARIE Group has been engaged to review the literature on sleep deprivation. We must also consider conference sport issues. There will be community information sessions in mid March. The school day will be lengthened to 7 hours for middle and senior high. IAC�O Our final logo was selected but unfortunately we will not be printing letterhead until this summer when we receive our new phone number after the new service is installed. WE LOVE OUR KIDS MONTH —& —PARENT FORUM The parent forum was a huge success. Over 300 people attended on Sat. morning Feb. 1st. We felt this helped address the need for parent education for children over 5. There is a lack in this area. The council liked the idea of the Marketplace Directory and would like to see it available in our city offices, medical clinics, for new families to the community, counseling offices, with police officers etc. Brian, Barbara, Ramona, Nathan, Kris and Carol will meet to update the directory. UP WITH PEOPLE The subcommittee reported that a decision was made to not contract with Up With People at this time. The fall will be too busy next year with all of our transitions to also plan a gala opening. We will have our own celebration, hopefully including a parade! (for Paul!) We will consider Up With People at a later date. SKATE PARK DREAM In trying to address our group of skaters, a proposal has been made to build a skate park in our community. A group of leaders met at Oakwood School early in the month to discuss this issue. Letters of support were written and a grant request was submitted to the state, who is offering funding for nonschool hour facilities.. We will know the result of that request the end of April. Ali Turner from the library and Barbara met with 55 students interested in the Park. We strongly believe that it is time to try to provide for this group of disenfranchised youth. The YMCA will be heavily involved in the operation of the facility. The school district and the City of Plymouth have each pledged $5,000 to the Park. DINNER AT REGENCY POINT It was moved and seconded to shop, pay for and serve dinner at Regency Point. Karen, Brian, LaDonna, Michael, Joy, Signe, Jim and Mandy will help serve. Brian will also arrange for several students to help. Jill, Kris and Barbara C. will cook. It will be a wonderful opportunity to see first hand how well CONECT is working! VISION FOR THE VILLAGE LaDonna reported on the convening of community leaders to talk about the needs of kids and families. Subcommittees have been formed and have been working on issues of • affordable housing * affordable childcare • transportation • jobs • nurturing kids. These committees have met, done research and reported back. Some very exciting activities are taking place. (Ex. Working with Norwest Bank, a program has been set up to offer low cost loans for car purchases. Several garages have offered to provide low cost car repair thus addressing the incredible need for affordable transportation.) CONECT CONECT has expanded into LakeView Commons apartments and has secured an entire apartment through a McKnight Grant. Kris will be able to provide programming from this on site space. Honeywell gave the funding necessary for the Boat Project. The meeting was adjourned at 9:13 March Advisory Board Minutes CONECT Collaborative msec at Lakeview Commons CONECT Clubhouse 18th Avenue North, Apt 8103, Plymouth, MN Telephone St 4768477 Bisek, Bev C e Iatthies, Cathy Fischer, Morey � , Colleen Simpson, Loretha Suggs, Barbara Stssffeet, LaDonm Hoy, Kris Kossmo 1. February minutes wen accepted 2. February Financial Repot As per McKni&t's request Mary Bisek, LaDonna Hoy and K s Konmo will establish a separate budget for the McKnight funds. February financial repott accepted. 3. Gifts for the Lakeview apartment and Regency Pointe kitchen will be welcombe at each board meeting. Lakeview has registered with Target. In order to access the registty....you must type in Grooms name: Lakeview Commons. A larger 'Showef will be held during the Open House celebration for Lakeview (April or May). Barb Struffert reported that the Lakeview Residents Council felt "Kid's don't want the feeling that we're trying to keep them out of trouble," se it is important that kids have some ownership in the type of programs CONECT provides. It was also noted that Jill Mellride (resident) and Connie Mobely (Lakeview Management) had informaally started a children's resident council. It was noted that the CONECT coordinator office shall remain at Vision of Glbzy Lutheran Church. Purpose. Keep CONECT in neutral location. 4. Coordinator's Report. Kris reviewed the programs listed in the March agendaL CONECT received $7,500 from the Plymouth City Council. Honeywell Corporation has funded the proposed 'Boat Project" in the approximate amount of $4,700. Sarah Rybybicki continues to wodc on putting the grant information on the computer. Sarah hopes to have 99% of the project completed by Match 12th. S. LaDonna Hoy reported on the meeting Kds and she attended with local developers and Ed Goldsmith, Plymouth Housing Authority. These developers are looking to build ak 120 unik, mixed -market rate apartment building At least 30 of these apartments would accommodate families with S0% or less than the median income. The developer, aro looking to the federal and state government for funding. The developers were delighted with the availability of services from Interfaith and CONECT. If efforts are successful in obtaining funding, the developers hope to work with no in the design of the complex in order to provide adequate space for CONECT programming. LaDonna spoke about the importance of CONECT organizations getting behind and supporting this vroiect when it Roes before the City Council. The availability of Section 8 Apartment: Im 1996 Plymouth 1,28* 874 wavzata 76 22 �,3& MEMO CITY OF PLYMOUTH 3400 PLYMOUTH BOULEVARD, PLYMOUTH, MN 55447 DATE: March 25, 1997 TO: Kathy Lueckert, Assistant City Manager FROM: Helen LaFave, Communications Coordinator SUBJECT: REVISION IN CHANNEL 37 CABLE SCHEDULE I am pleased to report that the disruption caused by Co. Rd. 9 construction of our alternate cable feed for channel 37 from Northwest Community Television (NWCT) has been permanently restored. Consequently, we are again showing cablecasts of City Council meetings from other cities served by NWCT. As you are aware, we initiated this several years ago when NWCT began making the meetings available to us via a feed, called the Cities Network, and viewers requested we do so. (By shutting off the power to our City Hall feed, we can access the Cities Network). REVISED SCHEDULE I've attached a copy of the revised schedule. As you recall, last fall we beefed up the number of showings of our own City Council and Planning Commission meetings. The revised schedule allows us to continue multiple showings of Plymouth City Council and Planning Commission while adding one showing a week of each cities' Council meeting (New Hope, Golden Valley, Brooklyn Park, Brooklyn Center, Crystal and Robbinsdale). AN IMPROVEMENT You will recall, NWCT programs the Cities Network in 6 hour blocks. That is, a meeting starts every six hours and the remaining time is left to a static videotext message that notes programming on the Cities Network is brought to viewers by NWCT and their city. This practice allows NWCT to accommodate meetings of varying lengths. The down side is that when we switch over, we may have 1 - 5 hours of a static videotext message from NWCT. Recognizing that one of Council's goals is to better utilize channel 37, I am working with NWCT to find a way for them to routinely inform me of the length of each cities' meeting every time they change. This will allow me to reprogram our timer so that we change back to our own City Hall feed at the conclusion of the other Council meetings and minimize the amount of NWCT videotext. Effective 3/25/97 CHANNEL 37 CABLECASTING SCHEDULE MONDAY 12 am. Replay of Plymouth City Council Meeting 6 a.m. Replay of Plymouth City Council Meeting Noon Replay of Plymouth Planning Commission Meeting 6 p.m. Replay of Plymouth Planning Commission Meeting TUESDAY 12 a.m. Replay of Plymouth Planning Commission Meeting 6 a.m. Replay of Plymouth Planning Commission Meeting 12:30 p.m. Replay of Golden Valley City Council Meeting 7:00 p.m. LIVE, -as Scheduled - Plymouth Planning Commission Meeting WEDNESDAY 12 a.m. Replay of Plymouth City Council Meeting 6:30 a.m. Replay of Brooklyn Center City Council Meeting Noon Replay of Plymouth Planning Commission Meeting 7:00 p.m. LIVE, as Scheduled Plymouth City Council Meeting THURSDAY 12 a.m. Replay of Plymouth Planning Commission Meeting 6:00 a.m. Replay of Plymouth Planning Commission Meeting 12:30 p.m. Replay of New Hope City Council Meeting 6:00 p.m. Replay of Plymouth Planning Commission Meeting Effective 3/25/97 FRIDAY � -- S 12:00 a.m. Replay of Plymouth Planning Commission Meeting 6:30 a.m. Replay of Brooklyn Park City Council Meeting 12:00 p.m. Replay of Plymouth City Council Meeting 6:00 p.m. Replay of Plymouth City Council Meeting SATURDAY 12:00 a.m. Replay of Plymouth City Council Meeting 6:00 a.m. Replay of Plymouth City Council Meeting 12:30 p.m. Replay of Robbinsdale City Council Meeting 6:00 p.m. Replay of Plymouth City Council Meeting SUNDAY 12:00 a.m. Replay of Plymouth City Council Meeting 6:00 a.m. Replay of Plymouth City Council Meeting 12:00 p.m. Replay of Plymouth City Council Meeting 6:30 p.m. Replay of Crystal City Council Meeting .i I L �o Attack on TIF is already underway! One of the bills we an- ticipated that further restricts the use of Tax Incre- ment Financing (TIF) has been introduced. . HF 1547, authored by Reps. Dennis Ozment and Ann Rest, was introduced Thurs- day, March 13. The other anticipated bill which would require state agency -approval of TIF dis- tricts has not yet been intro- duced. As we have noted in the past, most, if not all, of the so- called "tax reform" bills intro- duced or soon to be intro- duced, contain class rate compression provisions which could jeopardize tax increment from existing TIF districts. We will work with the LMC and other groups throughout the process to hopefully keep existing TIF districts "whole." The following is a summary of HF 1547 prepared by Gene Ranieri of Ehlers and Associ- ates: SECTION 1 Requires an interior inspec- tion of a building to prove that a building is structurally sub- standard. Since the authority does not have power to enter a prop- erty without the permission of the owner the compliance of the amendment in the case of an unwilling seller will be difficult. Applies to districts request- ing certification after July 31, 1997. SECTION 2 The term tax increment is defined to mean taxes paid by captured net capacity, the pro- ceeds of a property sale, the repayments of loans or ad- vances made by the authority and investment earnings on or other income from tax incre- ment. The effective date is retroac- tive to districts certified after July 31, 1979. In addition, the section is intended to confirm the intent of the original law. SECTION 3 Requires that the findings for a TIF district are not only re- tained but are documented in writing. Amendment is prospec- tive. SECTION 4 To modify a district after cer- tification, the authority must make a but for finding. Effective for TIF spending authorized or approved after June 1, 1997. SECTION 5 Makes a technical change to the annual disclosure section. SECTION 6 Requires that the develop- ment agreement include provi- sions that the developer docu- ment costs for which incre- ments may be paid and the developer reimbursed. The agreement may permit the payment of interest but the rate cannot exceed the au- thority cost of borrowing un- der similar terms. Effective for agreements entered into after June 1, 1997. SECTION 7 The three-year activity rule is modified to require that the activity must occur within the district. Under current law, the ac- tivity must occur within the project area or district. Prospective for new dis- tricts. (June 1, 1997) SECTION 8 Requires that unspent or unencumbered increments at the time of decertification must be returned to the county auditor for redistribu- tion. Decertification is defined to be the earlier of the last cal- endar year in which the dis- trict is permitted to collect increment or the calendar year in which the authority elects to terminate the dis- trict. Applies to all districts that will be decertified after June 1, 1997. Combined with section 2 - TIF - page 4 TIF/HF 1597 further restricts the use of Tax Increment Financing From page 3 the definition of increment -this section will make it difficult to retain increment once a district has been terminated. SECTION 9 The issue of paying for public facilities with increment is ad- dressed in this section. Defines the "conducting business of the unit of government" to include, but not be limited to, the pro- duction or sale of goods or the provision of any service the unit of government provides in its normal course of operation. Because current law prohib- its increment to be used for the acquisition, construction, reno- vation, operation, or mainte- nance of a building to be used primarily and regularly for the conducting of business of a unit of government, this provision clarifies what local government facilities cannot be funded with TIF. Seems to prohibit such facili- ties as waste water facilities. Increment can be used for the construction or renovation of a parking structure, a commons area used as a public park, or a facility used for social, recre- ational, or conference purposes but only if the TIF -assisted ac- tivity is needed to obtain a bind- ing commitment from a third party to construct private tax- able improvements as part of the development or redevelop- ment. Effective for spending of in- crements approved or autho- rized after June 1, 1997. SECTION 10 The definition of "cost of cor- recting conditions that allow designation of redevelopment and renewal districts" is pro- posed in this section. The definition clarifies thatthe acquisition of adjacent parcels is needed to permit develop- ment of the parcels containing substandard structures, and permits the payment of reloca- tion costs. The new definition, however, does not permit the use of increment for rehabilita- tion. Applies to districts certified after April 30, 1990 and is in- tended to confirm the intent of the original law. SECTION 11 Eliminates the option of tak- ing the fiscal disparities pay- ment from outside the district. Effective for districts certified after June 1, 1997. SECTION 12 Refers to prior planned im- provements and clarifies that the section applies also to a special use permit or rezoning that is necessaryto permit con- struction of the improvement. Reform/Tax statements to show state and city amounts From page 1 pose levy restraints using the implicit price deflator as an index. At this point, no levy limit provision allows debt levy outside of the limit. All bills provide class rate reductions, especially for rental and C/I property. Most eliminate HACA and modify the LGA formula and/ or grandfather provision and provide additional circuit breaker funds. Education funding buy -down comes primarily from the surplus, although two bills enact a new business activity tax and one extends the sales tax to clothing and various services. In most cases, property tax and truth -in -taxation state- ments split the education levy to show that portion imposed by the state separately from the locally -initiated amounts. The most probable vehicle for tax reform is a bill yet to be submitted which is authored by the Tax Commit- tee chairs (Rep. Dee Long and Sen. Doug Johnson). Their bill will contain: levy limits with a population growth factor and excess levies by referendum levied on market value; significant class rate reductions with indexing of the $72,000 Reform - page 6 AMM/LMC-Sponsored Negotiation Seminar REGISTRATION FORM Name(s): Title: Address: City: State: Phone: ) Zip: Special rates for overnight accommodations have been arranged with Days Inn, Roseville. For reservations, call 636-7939. Mail or Fax registration to: Office of Dispute Resolution Attn: Roger Williams 340 Centennial Bldg. St. Paul, MN 55155 Fax: 297-7200 Cost = $295 per registrant (Check or purchase order accepted) The AMM would like to WELCOME three new Board of Directors: Nancy Jorgenson (Fridley mayor), Donn Wiski (Roseville councilmember) and Lynn Moratzka (Hastings councilmember). Reform/ From page 4 bracket on homes; state share of K-12 funding in- creased by $302 million in F.Y. 1998 and $670 million in the next biennium; the circuit breaker is increased by $198 million; and education funding is split between state -im- posed and local initiatives on the tax statements. As yet, this bill contains no changes to the current HACA or LGA programs. Hearings on these bills have started. The House Omnibus Tax bill is targeted out of the Tax Committee on April 18. The Senate Omni- bus bill will follow shortly thereafter. It's very important that local officials continue a dialogue with your legislators on the evils of levy limits. We will do what we can globally, but legislators like to and need to hoar from you personally. Ne Gn N NA� t V/p", Association of Metropolitan Municipalities 145 University Avenue West Saint Paul, Minnesota 55103-2044 164F Printed on Recycled Paper O News In Between is published every four to six weeks during the legislative session and as needed during the interim to keep officials abreast of issues that may affect metro cities. © Copyright 1997 AMM 145 University Avenue West St. Paul, Minnesota 55103-2044 Telephone: (612) 215-4000 Fax: (612) 281-1299 The Board meets on the second Thursday of the month at 7 p.m. President. Tom Egan Vice President. Jim Prosser - Past President:. Joan Campbell =' ' Executive Director: Vern Peterson Legislative Director. Roger Peterson Communications Director: Cheryl Budewitz Administrative Assistant: Laurie Jennings Kathy Lueckert Asst Manager 3400 Plymouth Blvd. Plymouth, MN 55447-1482 141R21,97` -BMEIEP. 6767695 Page 6 March 1997 WILLIAM F. MESSERLI ROSS E. KRAMER TOM TOGAS RONALD S. PETERSON MARK S. LARSON ROBERT G. RENNER. JR. GEORGE R. SERDAR SANDRA L. NEREN CHRISTOPHER S. HUNT JAMES C. WICKA DANIEL J. GOLDBERG JOSEPH B. NIERENSERG WILLIAM C. NICKS WILLIAM M. MASICHT JOHN W. LANG PAUL W. ANDERSON DATE: TO: FROM: RE: M ESS ERLI & KRAM ER P. A. ATTORNEYS AT LAW LEAGUE OF MINNESOTA CITIES BUILDING SUITE 450 145 UNIVERSITY AVENUE WEST ST. PAUL, MINNESOTA 55103-2044 (612) 228-9757 FACSIMILE (612) 228-9787 AUTMORIZEO TO PRACTICE LAW IN MINNESOTA. WISCONSIN. ILLINOIS. IOWA. SOUTH DAKOTA. FLORIDA ANO WASHINGTON. O.C. WRITERS DIRECT DIAL NUM March 27, 1997 Mayor Dan Wall MLC Operating Committee Bob Renner, Jr. Session Update Til -A - 4 C' JOSEPH W. LAWVER R. TERRI MANDEL GARY W. BECKER ANN M. SETNES JOHN F. APITZ VINCENT G. ELLA LINDA S. JENSEN LEANNE G. LITFIN WILLIAM B. SUTLER JEFFREY M. ELLIS MAOMULIKA JAIN MARTIN A. MUENZMAIER LYNN M. NCMOLS ALICIA R. DRAKE STEPMANI M. HINZE I OF COUNSEL DANIEL S. KLEINSERGER Yesterday was the first legislative deadline, which requires a bill to have passed all necessary policy committees in at least one house, unless it is a tax or appropriation bill. A number of bills of interest to the MLC have been moving through the legislative process. This memo is to update you on their progress. Abolition of the Met Council - House File 783/SF 1209 This legislation, authored by Representative Peg Larsen (R -Lakeland) and Senator Warren Limmer (R -Maple Grove), would have abolished the Met Council except as an advisory board for planning purposes. On March 18, House File 783 was approved by the House Local Government and Metropolitan Affairs Committee by an 11-10 vote. The vote was split down party lines, with Republicans and Representative Sharon Marko (D - Newport) voting in favor of the legislation. House File 783 was then referred to the Transportation Committee where, on March 24, it was discussed at length and then laid over for interim study. Representative Sherry Broecker (R -Shoreview), a co-author of this legislation, informed me that she has received a commitment from House leadership to hold at least six hearings on this legislation during the interim. Senate File 1209 has not yet been heard in the Senate and it is likely that it will not be scheduled for'any hearings during the remainder of the Session. 1- tc-. Elected Met Council - House File 423/Senate File 175 This legislation, authored by Representative Myron Orfield (DFL -Minneapolis) and Senator Carol Flynn (DFL -Minneapolis), would require the Metropolitan Council to be elected rather than appointed. House File 423 was approved by the House Local Government and Metropolitan Affairs Committee on March 18 (the same night that the committee voted to abolish the Met Council). The vote on House File 423 was 12-7 to approve, with all DFLers and Representative Ron Kraus (R -Albert Lea) voting in favor of the bill. House File 423 was then referred to the Governmental Operations and Veterans Affairs Committee where it was approved by a voice vote on March 24. This legislation now awaits action on the House floor. Senate File 175 has not yet received a hearing in the Senate. Tax Increment Financing Reform - House File 1547 This legislation, authored by Representative Dennis Ozment (R -Rosemount), was sent to you earlier this week with an update about a hearing that was held on March 25 in the House Tax Committee. Ten witnesses were scheduled to deliver testimony at this hearing, but the committee only had time for one. Another hearing has been scheduled for 10:00 a.m. on Tuesday, April 1, also in the Tax Committee. Representative Ron Abrams's (R -Minnetonka) TIF Reform bill, which would limit the total amount of TIF captured value in the state to 3.25 percent of total tax capacity, will also be heard that day. The hearing will be in room 200 of the State Office Building. Property Tax Reform A number of proposals relating to significant property tag reform have been introduced. Three have been summarized in the March 27 issue of the MLC Update which has been mailed to you separately. Please note that two (the governor's proposal and the Long/Johnson proposal) of the three proposals summarized in the MLC Update contain levy limits for local units of government. Tax Based Sharing - House File 1089/Senate File 859 Representative Edwina Garcia (DFL -Richfield) and Senator Steve Novak (DFL -New Brighton) have introduced legislation that would extend fiscal disparities to homestead value over $200,000. House File 1089 was scheduled for a hearing in the House this week, but was removed from the agenda because Representative Garcia was ill. It has been rescheduled for a hearing on Wednesday, April 2 at 8:30 a.m. in the Property Tag and Tax Increment Finance Division of the Tax Committee. This hearing will be held in room 200 of the State Office Building. I have asked to testify against this bill on behalf of the MLC. If any of you would like to also testify, please contact me. If you have any questions on any of the above legislative proposals or need any other information, please call me at 228-9757. RGRjjp:87L7_LWbis March 24, 1997 Jane J. Larson Jane J. Larson & Associates Suite 225, Rosedale Towers 1700 West Highway 36 Roseville, Mn. 55113 RE: Special assessment, Christopher and Kimberly Loew Dear Ms. Larson: When the City returned the check last October 7th, we noted that the special assessment could not be paid until it was actually levied. The City does not accept or retain checks for pending levies because the final levied amounts frequently change at the public adoption hearings, and the assessments are not always adopted at that meeting, but may be deferred to a later meeting. That is the reason the check was returned uncashed. The special assessment for which this check was attempting to pay, was levied on October 16, 1996. The property owners, Christopher and Kimberly Loews, were notified on September 13, 1996 that there would be a public hearing on October 16, 1996 to levy the assessment in the amount of $949.00, and that no additional notices would be sent if they chose not to attend the public hearing. A copy of the letter that was sent to the Loews is attached for your information. Hennepin County has very strict rules for the various deadlines that the City must meet each year for special assessment certification and prepayments. The deadline for prepayment of this levy was November 30, 1996. The Loews had until November 15, 1996 to pay the assessment without additional interest, and November 30, 1996 with interest from October 16' until November 30'. I am sorry that the Loews did not contact you about the public hearing date, but I believe the City properly notified the Loews in time for payment without interest. Because of the timing on this issue, I will agree to contact Hennepin County and have them issue a revised tax statement without the special assessment principal or interest. Our records indicate that the assessment is paid off except for the 1997 portion. You will need to pay the City the balance of the unpaid principal ($189.80) to complete this payoff. Please contact me at 509-5301 if you wish to discuss this further. Wea4") n Finance Director cc: Mayor & City Council's Dwight D. Johnson, City Manager PLYMOUTH A Beau tifulPlaceTo Live 3400 PLYMOUTH BOULEVARD • PLYMOUTH, MINNESOTA 55447-1482 • TELEPHONE (612) 509-5000 NOTICE OF HEARING ON PROPOSED ASSESSMENT 1996 STREET RECONSTRUCTION CITY PROJECT NO. 602 1211822430008 CHRISTOPHER & IUM 3FRLY LOEW 4710 ORLEANS LA N PLYMOUTH, MN 55442 TO WHOM IT MAY CONCERN Notice is hereby given that the City Council of the City of Plymouth, Minnesota will meet in the City Council Chambers, Plymouth City Center, 3400 Plymouth Boulevard, at 7:00 p.m., Wednesday, October 16, 1996 to pass upon the proposed assessment for Street Reconstruction improvements by the installation of bituminous street with concrete curb and gutter, storm sewer, and all necessary appurtenances pursuant to Minnesota Statutes, Section 429.011 to 429.111 (Laws 1953, Chapter 398, as amended). The following is the area to be assessed: SEE EXHIBIT A The proposed assessment is on file for public inspection at the office of the City Clerk. Written or oral objections will be considered at the hearing. The total project amount of the proposed assessment is $407,849.42. Following the hearing, the Council will decide whether any adjustments in the roll are necessary and will, by resolution, adopt the roll. The fust installment will appear on the 1997 tax statement and shall include interest at the rate of 7.5 % per year from the date of the resolution adopting the assessment roll until December 31, 1997. If a property owner pays the full assessment on his property prior to November 30,1996, interest due on that payment would be calculated to the date of payment. If such payment is made after November 30, 1996, interest will be charged to December 31, 1997. If a property owner pays his assessment in full within 30 days of the date of the resolution adopting the roll, no interest will be charged. Such payment should be made to the City Treasurer at City Hall. THIS IS THE ONLY NOTICE YOU WILL RECEIVE FOR THIS ASSESSMENT YOU WILL NOT BE BILLED. FOR INFORMATION ABOUT THE CITY COUNCIL'S DECISION ON THIS ASSESSMENT, CALL 509-5522 or 509-5531: L:AE C;WROIECfS%6D2V\.%ffSULWrFORM.DOC I f- S Page Two a You may appeal any assessment to the district Court pursuant to Minnesota Statutes Section 429.081 by serving notice of the appeal upon the Mayor or the City Clerk within 30 days after the adoption of the assessment roll and filing such notice with the Clerk of District Court within ten (10) days after service upon the Mayor or City Clerk. No such appeal as to the amount of an assessment as to a specific parcel of land may be made unless the owner has either filed a signed written objection to that assessment with the City Clerk prior to the hearing or has presented the written objection to the presiding officer at the hearing. DATED: September 13,1996 G�- Laurie Ahrens, City Clerk YOUR TOTAL ASSESSMENT IS: $949.00 L-WNC;%PROJWFSW2%A.WrS%ASWFORM.EM JANE J. LARSON & ASSOCIATES ATTORNEYS AT LAW SUITE 225, ROSEDALE TOWERS 1700 WEST HIGHWAY 36 ROSEVILLE, MN 55113 e-mail address: jjlarson®piper.hamline.edu 1-800-327-6354 March 20, 1997 Mayor Joycelyn Tierney City of Plymouth 3400 Metro Boulevard Plymouth, MN 55447 Subject: Special Assessment, Christopher and Kimberly Loew Dear Mayor Tierney: (612)636-5473 FAX (612) 636-0437 On October 4, 1996, we sent a check for $949.00 to the City of Plymouth to pay for the special assessment of Mr. and Mrs. Loew. The finance office returned the uncashed check to our office on October 7, 1996, with a note that the special assessment was still pending. We only recently learned that the assessments had been levied on October 18, 1996. The City of Plymouth had been advised that we were holding the funds for the special assessment in escrow on behalf of the Loews. However, our office never received any notice of when the assessment would be levied. Further, that information was not provided to us in the note enclosed with the returned check. Despite the good faith effort we made to pay on time — in fact, early — the Loews incurred interest on this assessment. I am astonished that the check was returned to our office in the first place. I respectfully request that you contact Hennepin County and request an abatement of the interest charged to the Loews after November 30, 1996. Not only is it unfair to penalize our clients for paying their assessment early, it is even less fair to penalize them with interest charges when your finance office failed to send our office notice of when to pay the assessment. We appreciate your assistance in this matter. Please contact our office if you have any questions. Very truly yours, •J Jane J. Larson cc: Mr. and Mrs. Loew qu183 CITY OF March 26, 1997 PLYMOUTH+ Eunice and Les Bottem 5224 44th Avenue S. Minneapolis, MN 55417 Dear Mr. and Mrs. Bottem: Mayor Joy Tierney requested that I respond to your letter regarding the proposed Gramercy Park development., A copy of your letter to Mayor Tierney was distributed to the City Council. As you know, the Planning Commission recommend denial of the Gramercy Park application on March 11, 1997. Since this time, the applicant granted the City an extension of the 120 day review period, from April 2, 1997 through July 31, 1997, to allow for field verification of the wetlands. The proposed development along with any revisions will be rescheduled for consideration later this spring. Anyone who has an interest in the development will be invited to attend the meeting at that time. People wishing to speak at the meeting must write their name, address, and telephone number on a blue card which is available at the entrance of the Council Chambers. Thank you for taking the time to provide written comments. If you have any questions, please feel free to call John Rask, Planner at 509-5457. Sincerely, dzwx4eot� Anne Hurlburt Community Development Director c: Kathy Lueckert, Assistant City Manager C/R. File (97-25) PLYMOUTH ABeautiJulPlace'ToLive 3400 PLYMOUTH BOULEVARD • PLYMOUTH, MINNESOTA 55447-1482 • TELEPHONE {6 x 0 y o o c a a s v , O O N N N N M M M M M M M M CN ON of o� o., D\ (7, ON .� N N W) (V 00 N .=� , M , v� O O N M M M M 4 4 4 � ON ON O% as Q\ N N N N N M M M M M , M , M , M , M , M , M o\ o, (IN - . N V 1 N b N 00 N M M M M M M M M M M M b o M 04 a, o 0 o .> > cis cd N 0 a A ° ami a ° o o14 > o. o> i w o z o Ci,Aw.0Ga;AFN 0C7v O aaAaU .. E 3 0 cc C14 b N � ° GA ►� a0coi o 10 � 'b o -d U C'sDC7 cqs s-4 >% b ° V w a =1A Cd ;x x OC1x v3ix xxC7x x O� O N N NM N CIN 4 tr; N �o N t� N 00 N C\ N x 0 y CiTv OF PLYMOUTFF March 24, 1997 Teresa B. Bonner Hennepin County Library 12601 Ridgedale Drive Minnetonka, Minnesota 55305 Dear Ms. Bonner, The Plymouth City Council joins me in congratulating the Hennepin County Library System on its seventy fifth anniversary. This is quite a milestone, and we are grateful that the Hennepin County Library has provided us with such quality over the years. We in Plymouth are particularly proud of the Plymouth Community Library. We remember the grand opening, when we were excited and honored to hear Studs Terkel. Plymouth residents use the Plymouth Library well and often—I understand that its circulation is among the highest in the entire system. The library is always bustling with activities enjoyed by folks of all generations. The Plymouth Library is a great community center and asset just as a library should be. Once again, congratulations on Hennepin County Library's anniversary, and we look forward to the next 75 years of service to the community. Sincerely, Joy Tierney Mayor of Plymouth PLYMOUTH A' Beautifu[Place'7v Live 14nn PI VM01ITN Rr)I II F\/APr) . PI VNAr)I ITu AAINIMCQnTA CrAA7.1AOn TcI CnUnhlc I0.`17N cnn_Gnnn � ,MAR 28 '97 09 : 34AM-EEEAGUE OF MN CITIES P.1 LMCW FRIDAYFAx —r vol. 2. No. 12 • t++ .V A weekly legislative update from the League of Minnesota Cities March 28, 1997 Rights of way bill is amended before it advances The House Local Government Committee approved a bill late Monday that would clarify the city role in managing the public rights- of-way and recovering related costs. H.F. 322 (Jennings, DFL - Rush City) received committee approval just two days before the first committee deadline. The Committee amended the bill based on comments by the League and others. The most significant amendment eliminated a provision that would have pre- vented local management of the public rights of way until the PUC adopts uniform statewide stan- dards in August 1998. The League was concerned that nearly two full construction seasons would elapse before adoption of the standards. The amendment allows cities to adopt or enforce ordinances while the PUC studies the issue. The Minnesota Tele- phone Association (MTA) strongly opposed the amendment, and said they would likely oppose the amended bill. If the MTA does oppose the bill, they will have a number of oppor- tunities to force changes or kill it altogether. H.F. 322 now moves to the House floor, and the Senate companion, S.F. 442 (Novak, DFL - New Brighton), could be heard in as many as three committees before the next deadline. During this long Easter week- end, it's likely your legislators will be home. Take this opportunity to ask their support for H. F. 322. Tell them that with the construction season upon us, the bill must not delay city management authority. You can also stress again these three basic principles as they relate to rights of way. Brownfields bill lacks funding Two bills dealing with brownfields, H.F.771/S.F. 319, introduced by Rep. Dee Long (DFL -Minneapolis) and Senator Randy Kelly (DFL- St. Paul), continue to make their way through the legislative process. However, both of the bills have been amended and they no longer contain funding mechanisms. If your community has con- taminated sites and you support brownfields legislation, please contact your legislators, and other key members immediately. Key House contacts Speaker of the House Phil Carruthers (612) 296.37.09 House Majority Leaders Ted Winter (512) 296-5505 House Minority Leader Steve Sviggum (612) 296.2273 Ways and Means Chair Loren Solberg (612) 295-2365 Key Senate contacts Senate Majority Leader Roger Moe (612) 296-2577 Senate Minority Leader Dean Johnson (612) 296- 3826 Econ oev. Budget Chair Tracy Beckman (612) 296-5713 1) Cities must be responsible for the management and control of the public rights of way. 2) Cities must be able to recover all costs and expenses that result from intrusions into the rights of way. 3) Cities should receive reason- able compensation for use of the rights of way. TIF, TIF, TIF Under the latest TIF reform bill, the state would become directly involved in the approval of local tax increment financing projects. The bill, H.F. 2010, (Abrams, R - Minnetonka and Rest, DFL- New Hope), would require approval by the Department of Trade and Economic Development or Minne- sota Housing Finance Agency in order for the school district portion of the tax rate to generate tax increment. The bill would also set an overall state TIF limit of 3.25 percent of the statewide net tax capacity. State approval would hinge on a determination that the proposal complies with state law, that authority is available under the state TIF limit, and that the pro- posal is in the interest of the state. The House Tax committee will take up this bill sometime next week. If you disagree with such state intervention, contact mem- bers of the House Tax Committee or your representative. MUNICIPAL LEGISLATIVE. C NUPDATE IV -,' ! UPDATE 1997-3 p � ? 8 't°g� n, WEDNESDAY, MARCH 26, 1997 _P. thA 5_' WOPERTY TAX REFORM OVERVIEW Nineteen ninety-seven is evolving into the year when major property tax reform may become enacted. The last time this occurred was more than 25 years ago when the "Minnesota Miracle" was adopted during the 1971 Special Session. Legislators, local elected officials and the public have complained for years that the property tax system is unfair, lacks accountability, and is too complicated, but for various reasons a comprehensive reform package has not been enacted. However, the $2.3 billion budget surplus and a new attitude of bi-partisan cooperation have provided an opportunity for legislators and the executive branch to work together to make significant changes in the property tax system during the 1997 Session. A number of credible property tax reform proposals have been introduced by legislators from both political parties. This issue of the MLC Update is dedicated to explaining three of these proposals. If you would like a additional information or would like a copy of any bill discussed in the following pages, please contact Bob Renner or Jennifer Peterson at 228-9757. SENATOR DOUG JOHNSON & REPRESENTATIVE DEE LONG On March 18 Senator Doug Johnson (DFL -Tower) and Representative Dee Long (DFL - Minneapolis) held a press conference announcing a property tax reform proposal that will likely receive serious consideration, given their roles as Chairs of the Senate and House Tax Committees. Their legislation House File 1871/Senate File 1644 was introduced on March 20. The Johnson/Long proposal would make a number of changes in classification rates, require the state to assume a greater responsibility for education funding, increase the eligibility for "circuit breaker' programs, and impose levy limits on local units of government. --------------------------------------------------------------------------------------------------------- The Jlf1.0 Update is prepared by Robert G. Renner, Jr. and Jennifer J. Peterson Hesserli & Kramer P.A., 145 University Avenue Wert, Suite 450, St. Paul, HN 55103 Telephone (612) 88&9757 Fav (618) 8889787 •.V Classification Rates Under the Johnson/Long package, homeowners would not see any change in the classification rates on their residence. However, classification rates for rental, apartments, and commercial/industrial/utility properties (C/I/U) would be reduced. Currently, all non -apartment rental property, regardless of market value, is taxed at the rate of 2.3 percent. House File 1871/Senate File 1644 would alter this rate by creating two market value classes - rental property with a market value of $72,000 or less, and property with a market value greater than $72,000. Lower -valued rental property would have a tax capacity rate of one percent while any value over $72,000 would be at a two percent rate. Thus, these rates would be identical to homesteads. House File 1871/Senate File 1644 would lower the classification rate for apartments with three or fewer units from the current rate of 2.3 percent to two percent. The classification rate for apartments with greater than three units currently is 3.4 percent. This proposal would reduce this rate to 2.5 percent. It is estimated that the total tax relief provided to rental property under the provisions of House File 1871/Senate File 1644 would reduce total property taxes by 23.4 percent. C/I/U property would also see a classification reduction if this proposal were to become law. Current law imposes a tax capacity rate of three percent on C/I/U property with a market value under $100,000, and 4.6 percent for property with a market value over $100,000. House File 1871/Senate File 1644 would change the definition of 'lower -valued" C/I property to $200,000. Tax capacity rates would then be lowered to 2.5 percent for the first $200,000 and 4.0 for any value over that amount. After factoring all the other class rate changes included in this proposal, it is estimated that the tax burden placed on C/I/U property will be reduced by 1.1 percent. Education Funding House File 1871/Senate File 1644 would increase the state share of K-12 funding from 61 percent to about 65 percent. This increase would require the state to provide an additional $302 million in fiscal year 1999 and $670 million in the 2000-01 biennium. The additional money needed through 2001 will be provided by the projected surplus, but House File 1871/Senate File 1644 does not _ create an additional revenue source to provide this funding after 2001. This provision will reduce property taxes on all classes of property. Circuit Breaker (Property Tax Refund) House File 1871/Senate File 1644 would provide an additional $198 million for the property tax refund (PTR) in fiscal years 1999 - 2001. This money is split between the homeowners PTR, which received $167 million, and the renters credit, which receives $31 million. This funding is intended to offset the shift onto homeowners that would occur from the reduction in property classification rates on other types of property. Levy Limits This proposal would limit levy increases to an inflationary growth factor, set according to the implicit price deflator plus an allowance for household growth. Debt service levies are exempt from this limit. To increase levies beyond this limit, a local referendum authorizing this increase would need to be approved by the voters. In the event that the referendum passes, all of the levy increase over the levy limit is spread on the basis of referendum market value, not tax capacity. Local Government Aids During discussions of property tax reform, changes in the transfer payment system (LGA, HACA, LPA etc.) are a frequent topic. House File 1871/Senate File 1644 would make no changes in any of these local -aid programs Tax Increment Financing and Fiscal Disparities There are no provisions directly addressing TIF or fiscal disparities in Rouse File 1871/Senate File 1644. SENATOR BILL BELANGER/REPRESENTATIVE BILL MACKLIN (GOVERNOR CARLSON'S REFORM PROPOSAL) Senator Bill Belanger (R -Bloomington) and Representative Bill Macklin (R -Lakeville) are the authors for the governor's property tax reform plan. The House version of this plan, House File 1617, was introduced on March 17. The Senate companion bill, Senate File 1510, was introduced on March 20. Under the terms of the governor's proposal, most property tax classifications will see a reduction in their rates, greater state funding for education is provided, the LGA program is modified, and a levy limit is instituted for local units of government. Classification Rates House File 1617/Senate File 1510 would reduce nearly all property tax classification rates, the only exceptions being homesteads valued at $72,000 or less, and farm land valued at less than $72,000. These rates would remain at one percent and .45 percent respectively. Under this proposal, homestead value over $72,000 would have a tax capacity rate of 1.65 percent rather than the current two percent. In the year 2000, the 1.65 percent rate would be further reduced to 1.55 percent. House File 1617/Senate File 1510 would reduce the rate on rental property from 2.3 percent to 1.85 percent. Apartment property with three or fewer units would have a tax capacity rate of 1.85 percent and apartment property with more four or more units would be at a 2.65 percent rate. Current rates for apartment property are 2.3 percent for smaller apartment buildings and 3.4 percent apartments with more than three units. C/I/U property would also see a reduction in classification rates. The current rates are three percent for the first $100,000 in value and 4.6 percent for all value over that amount. House File 1617/Senate File 1510 would instead tax the first $100,000 at 2.45 percent and any value over that at the rate of 3.35 percent. The class rate reductions proposed for CAM property have been estimated to decrease property tax burden on that property class by 9.27 percent statewide. Property tax rates on apartments with three units or less would be reduced by 4.81 percent while rates for apartments with four or more units would be reduced by 7.32 percent. Education Funding The proposed reductions in property tax classification .rates would normally shift property tax burden onto homeowners who live in homes under $72,000 in value. Therefore, this plan includes an "education homestead credit" which is intended to alleviate this burden shift. The formula for the education credit is equal to 50% of the total non -referendum school district tax up to a maximum of $310. For example, if the school district's tax portion of a homeowners property bill equaled $500, the homeowner would receive a credit of 50 percent or $250. If the tax were $1,000, the homeowner would receive the maximum of $310. In general, home values over $120,000 would hit the maximum amount of this credit. However, these homes benefit from the class rate reduction of two percent to 1.65 percent. This credit would effectively increase the state's share of K-12 funding from 61 percent to 64 percent. Through 2001, the education credit would be paid for by money from the budget surplus with $250 million provided for fiscal year 1999, $300 million for 2000, and $350 million for 2001. No funding mechanism proposed in this legislation to ensure that revenue is available after 2001. This legislation would also attempt to restrain the growth of the state general education levy by requiring a "super majority" (two-thirds of a legislative body) to vote in favor of any increase in the state general education levy. Circuit Breaker (Property Tax Refund) This proposal includes no changes to the PTR or renters credit programs. Levy Limits House File 1617/Senate File 1510 would limit local units of government to levy increases at or below the rate of inflation. It is estimated that this levy limit would be three percent in 1998 and three percent in 1999. No population or homestead growth factor is included in this limit. However, if a local unit of government desires to exceed this limit, any additional increase will need voter approval. Any taxes approved by a referendum would be spread on the basis of tax capacity, not market value. Local Government Aids This proposal would make changes only to the LGA program, HACA and other credits are not addressed. House File 1617/Senate File 1510 would reduce the ungrandfathered portion of LGA by five percent each year beginning in fiscal year 2000, and repeal the annual inflationary increase in LGA. Money saved by LGA reductions would be dedicated to help reduce the general education levy. The reduction in LGA would equal a savings of $34.4 million in fiscal year 2000 and $59.2 million in fiscal year 2001. Tax Increment Financing and Fiscal Disparities House File 1617/Senate File 1510 does not address fiscal disparities. It does, however, make some changes to ensure that TIF districts are not harmed by changes in property tax classification rates. This is accomplished by creating a state fund to provide grants to municipalities so that they can meet their outstanding TIF debt obligations. The fund is administered by the Department of Revenue. Grants are limited to the lesser of. (1) the reduction in increment revenues due to the rate compression included in the proposal, or (2) a municipality's total available tax increment minus the amount due during the calendar year to meet all outstanding bond obligations. An appropriation of $6.5 million is provided for in the proposal for 1998, $5 million for 1999, and $5 million for 2000. If the amount appropriated is inadequate to cover the cost of all outstanding debt, the grants to local governments are reduced proportionately. REPRESENTATIVE ANN REST & SENATOR JOHN HOTTINGER Representative Ann Rest (DFL -New Hope) has spent a great amount of time during the past year working on a comprehensive property tax reform proposal. The MLC Update has followed her proposal during its early stages, but on February 10 the final version of the Rest proposal, House File 639, was introduced in the House. Senator John Hottinger (DFL -Mankato) introduced the Senate companion, Senate File 821, on February 27. This proposal, House File 639, would make major changes in property tax classification rates, education funding, state transfer payments and circuit breaker funding. Classification Rates House File 639/Senate Me 821 would create two separate property tax systems relating to tax classification rates. The first system would create a "local services tax" which would serve as the revenue source for all county, city and town levies, municipal excess levy referenda, and school bond referenda. Under this system, the number of classifications is reduced and rates within these classes are lowered. These new classifications and rates are as follows: • Homesteads, apartments with three or fewer units, and cabins are taxed at a rate of one percent. Unlike the current property tax system, this proposal makes no distinction in property tax classification rates for homesteads and cabins with value over $72,000. • Property tax classification rates for apartments with four or more units are reduced from 3.4 percent to 1.5 percent, • All C/IIU property has a classification rate of two percent rather than the current rate of three percent for the first $100,000 and 4.6 percent for value above that amount. • Property tax rates are also simplified for agricultural land. Currently there are six classifications for farm land with rates ranging from .45 percent to 1.5 percent. House File 639/Senate File 821 would tax all agricultural land at a rate of .5 percent. Taxes within the local services property tax will be spread on the basis of tax capacity. The second property tax system created by this proposal is the state property tax system which would be used to replace the general education levy. Under this system, tax rates are applied directly to taxable market value. This system would only have only two class rates - C/I/U property would be taxed at a 2.4 percent rate and all other "non-exempt" property would be taxed at a 1.2 percent rate. Property that is exempt would be personal use residential (including cabins) with a value less than $115,000, agricultural property with a value below $200,000, CAM property under $60,000 and all low-income apartments. It has been estimated that this proposal will decrease the tax burden on all rental property by about 13 percent and on C/I/U by about 12.3 percent. Education Funding House File 639 would fund 100 percent of K-12 operating costs from the state's general fund. This would require the state to take over $1.64 billion in existing school operating levies. The local property tax will continue to provide full funding for capital projects and new school buildings. No future revenue source for this funding obligation is identified in House File 639. In addition to the state takeover of education funding, existing school operating referenda levies will be converted to local income tax surcharges. This would require about $250 million in excess operating school levy referenda to be shifted from local property taxes to local income taxes. Local income tax revenues generated by existing referenda and newly adopted referenda will be equalized by the state. Circuit Breaker (Property Tag Refund) This proposal provides an additional $174 million for the homeowners property tax refund. The refund program is restructured, includes the following elements: • the maximum allowable refund is increased from $440 to $750; • a minimum refund equal to .25 percent of a homestead's taxable market value up to $180 will be paid to all owners of homestead property regardless of the percent of income paid in taxes; • the maximum household income to remain eligible for the tax relief is increased to $100,000; and • two PTR payments will be made, the first as a refundable credit against the state income tax. The renters refund under the proposal is based on a uniform percentage of rent paid rather than on the renter's share of the actual taxes paid by the property owner. This provision prevents reductions in the renters credit that would occur from the reduction in property taxes paid by property owners. Levy Limits No levy limits are proposed in House File 639 Local Government Aids and HACA House File 639 would phase out the "grandfathers" in LGA over time. A new LGA program for counties is created and funded at $200 million, and a new town LGA program is created with $22 provided in funding. HACA is repealed in this proposal. A new town LGA is created and distributed on a needs basis. Tax Increment Financingr and Fiscal Disparities The changes in tax capacity rates included in House File 639 would reduce the tax increments received by existing tax increment financing districts. Therefore, this legislation would create a state source of funds provided to cities to ensure that they can meet their outstanding TIF obligations. This proposal would also affect fiscal disparities by changing the computation of the fiscal disparities contribution net tax capacity so that it is based on the current year's C/I/U net tax capacity rather than the previous year's. This change would have a stabilizing effect on the fiscal disparities program. OTHER PROPERTY TAX REFORM PROPOSALS In addition to the three proposals summarized above the bills listed below also provide for property tax reform. House File 978 - Representative Kevin Goodno (R -Moorhead) Senate File 762 - Senator Dallas Sams (DFL -Staples) House File 1103 - Representative Todd Van Dellen (R -Plymouth) Senate File 1681 - Senator Linda Runbeck (R -Shoreview) House File 1292 - Representative Andy Dawkins (DFL -St. Paul) Senate File 1100 - Senator Steve Novak (DFL -New Brighton) House File 1253 - Representative Dan McElroy (R -Burnsville) Senate File 1057 - Senator Bill Belanger (R -Bloomington) House File 1442 - Representative Gene Pelowski (DFL -Winona) Senate File 1364 - Senator John Hottinger (DFL -Mankato) House File 1852 - Representative Ron Abrams (R -Minnetonka) Senate File 1728 - Senator Pat Pariseau (R -Farmington) During the next seven weeks the legislature will be crafting a final Omnibus Tax Bill. It is likely that provisions from a combination of proposals will be incorporated into the ultimate legislative solution. JJP:jjp:8753_1.W51a DATE: March 27, 1997 TO: Dwight D. Johnson, City Manager FROM: Craig C. Gerdes, Director of Public Safety SUBJECT: COMPLIANCE CHECKS This past weekend, coordinated through the Police Department's internal Community Oriented Policing Committee, the department started compliance checks for both alcohol and tobacco products. Letters and information booklets were first delivered to all license holders. Copies of the materials distributed are attached for your information. Alcohol compliance checks were conducted on Friday, March 215` and Saturday, March 22"x. On Friday, 10 license holders were checked and two of those failed by selling. On Saturday, 14 license holders were checked and four of those failed by selling. Tobacco compliance checks were conducted on Monday, March 24' and Tuesday, March 25'. The totals for the two days worth of checks were that 43 license holders were checked and seventeen failed by allowing the purchase. Reports on the illegal sales have been forwarded to the City Attorney's office for prosecution. The business owners are also liable under our ordinance for administrative penalties for the sales. There are possible complications with criminal prosecution if the administrative hearings are held before the criminal process is completed. The City Attorney agrees it would be better to wait and not jeopardize the criminal prosecution of the clerks involved. We will, therefore, wait until after the prosecution is complete and we have final dispositions on the cases before scheduling them for City Council review. We will keep you updated on the progress of these cases and further compliance checks. CITY OF March 7, 1997 PLYMOUTH+ FirstName» «LastName» «LicEstablishment» «Address» Plymouth, MN «Zip» The Plymouth Police Department will be conducting a aTypeLic» law sales violation project beginning this month and continuing during the months of April and May. The department routinely performs these projects out of a community concern for the purchase or attempted purchase of these products by underage youth. Primarily, the project will involve the use of uniformed or undercover police officers. The officers will observe businesses for purchases or attempted purchases that are in violation of law. The project may involve the use of community volunteers. The volunteers, acting under the direction of police officers, will attempt to purchase products from retailers throughout the City. Merchants are encouraged to counsel their employees about unlawful sales and related consequences. Violations will be referred to the Plymouth City Attorney's office for criminal prosecution and to the City Council for possible administrative penalties. Administrative penalties may include fines and/or suspensions of your license. An informational guide is included for your use. The Plymouth Police Department strongly encourages merchants to report attempted underage violations so enforcement action can be taken. Information on compliance and lack of violations will also be noted in the license file with the City of Plymouth. We realize most businesses work hard to avoid illegal sales to minors. We seek to work cooperatively with you to eliminate this problem. Sincerely, Craig C. Gerdes Director of Public Safety PLYMOUTH POLICE DEPARTMENT PLYMOUTH A Beautiful Place To Live 3400 PLYMOUTH BOULEVARD • PLYMOUTH, MINNESOTA 55447-1482 • TELEPHONE (612) 509-5000 ALCOHOLIC BEVERAGE SALES INFORMATION TIPS FOR EMPLOYEE TRAINING Management should issue a clear directive to all employees that your store will not sell alcoholic beverages to anyone under the age of 21. As part of this directive, we recommend you set a store policy that requires your employees to request picture identification of anyone purchasing alcoholic beverages who appears to be age 30 or younger. or Review the State Law, City Ordinance, and your store policy with your employees. We recommend you have all employees sign a form for your files stating they were trained on this date and they understand the Law and store policy (a sample form is included in this packet.) You should be sure to cover this information with all new employees when they start and periodically (at least annually) have a refresher session with existing employees. Ensure employees understand that failure to adhere to Law and policy could result in disciplinary action and/or criminal penalties. Go over acceptable forms of identification with all clerks. Make sure they know that management will back them in instances where they must turn someone down for a purchase. We have included a sample of the "Employee Agreement" form we suggest having each employee sign for your files after training. Employee Agreement I hereby certify that I understand that Minnesota law prohibits the sale of alcoholic beverages to persons under the age of 21 years. I have been trained by my employer in the State Law, City Ordinance, and Store Policy regarding carding of individuals requesting to purchase alcoholic beverages. I also understand the possible penalties for violation of any of these Laws or policies. By my signature, I agree to comply with all Laws and store policies regarding these sales. In turn, management agrees to support my judgment in not making sales in questionable cases. Management also agrees to inform me of any changes in the Laws or store policies regarding alcoholic beverage sales. Employee's Signature Manager's Signature Date Date This agreement will be maintained in our personnel file as part of your permanent employee record. Minnesota Alcoholic Beverage Laws that you should know 340A.503, subdivision 1(a) (2) A person under the age of 21 years who consumes an alcoholic beverage has committed a misdemeanor. 340A.503, subdivision 1 (c) A person under the age of 21 years beverage then operates a motor vehicle c -C suspended for 30 days for the first offense misdemeanor. 169.121, subdivision 3 (c) (4) who consumes an alcoholic n have their driver's license and they have committed a A person driving while under the influence of alcohol while a youth under the age of 16 is in the vehicle has committed a gross misdemeanor. 340A.503, subdivision 2 (2) and subdivision 4 (a) A person under 21 years of age who attempts to purchase an alcoholic beverage has committed a misdemeanor. 260.195, subdivision 3 A person under the age of 21 who attempts to purchase alcohol with a Minnesota ID can have their driver's license suspended for 90 days for the first offense and has committed a misdemeanor. 260.195, subdivision 3 a (b) A person who has committed a prior juvenile alcohol offense and attempts to purchase alcohol with a Minnesota ID can have their driver's license suspended until they reach the age of 18 years or for a period of one year, whichever is greater, and has committed a misdemeanor. 340A.503, subdivision 2 (3) A person under 21 years of age who possesses or carries an alcoholic beverage in a place that is not their own parents' home has committed a misdemeanor. 340A.503, subdivision 2 (3) and 171.171 A person who lends an ID to a person under 21 years of age to enable them to purchase an alcoholic beverage has committed a gross misdemeanor and can have their driver's license suspended for 90 days. 340A.503, subdivision 2 (1) A person who sells, furnishes, or gives any alcoholic beverage to a person under 21 years of age has committed a gross misdemeanor. 340A.402 A person who sells alcoholic beverages without a license to an individual or at a party (i.e.,..selling cups .at a party or collecting a door charge) has committed a gross misdemeanor. PENALTIES DEFINED: Gross misdemeanor Penalty is up to a $3,000 fine and/or up to one year in jail. Misdemeanor Penalty is up to a $700 fine and/or up to 90 days in jail. Petty misdemeanor Penalty is a fine of up to $200. Local Administrative Penalties The City Council may either (i) impose a civil fine up to $2,000 and/or (ii) suspend for a period not to exceed 60 days or revoke any license upon a finding that the licensee has failed to comply with an applicable statute, regulation, or ordinance relating to the sale, consumption or display of alcoholic beverages. A license issued pursuant to this Chapter shall be revoked upon conviction of the licensee of a felony. No fine, suspension, or revocation shall take effect until the licensee has been afforded an opportunity for a hearing in accordance with applicable law and City Code. State Law addresses acceptable identification for proof of age for the purchase of alcohol products. 340A.503 PROOF OF AGE Subd. 6. Proof of age; defense. (a) Proof of age for purchasing or consuming alcoholic beverages may be established only by one of the following: (1) a valid driver's license or identification card issued by Minnesota, another state, or a province of Canada, and including the photograph and date of birth of the licensed person; (2) a valid military identification card issued by the United States Department of Defense; or (3) in the case of a foreign national, from a nation other than Canada, by a valid passport. Be aware that if a store sells to an underage individual and officers are able to determine that the youth used an altered identification card, neither the clerk nor the store would suffer any consequences of the sale. You must, however, make a good faith effort to check the identification card. If the officer believes the alteration is obvious and should have been spotted by the clerk, he may still charge the clerk with sale to a minor. In closing, we would like to again thank you for your cooperation in this project. Many resources are available to assist you in educating your clerks on requesting and checking identification and complying with the Law. Your local police department is also available to assist with employee training sessions. Basic training includes when and how to ask for identification, what to look for on an I/D card, and how to spot an altered card. Be sure to call Plymouth's Public Safety Education Specialist, Sara Cwayna at 509-5198 and she would be happy to arrange for one of these training sessions for you. TOBACCO SALES INFORMATION TIPS FOR EMPLOYEE TRAINING Management should issue a clear directive to all employees that your store will not sell tobacco or tobacco -related products to anyone under the age of 18. ®' As part of this directive, we recommend you set a store policy that requires your employees to request picture identification of anyone purchasing tobacco who appears to be age 26 or younger. Distribute copies of State Law and City Ordinance to all employees. Review the law and your store policy with your employees. We recommend you have all employees sign a form for your files stating they were trained on this date and they understand the Law and store policy (a sample form is included in this packet.) You should be sure to cover this information with all new employees when they start and periodically (at least annually) have a refresher session with existing employees. �' Ensure employees understand that failure to adhere to Law and policy could result in disciplinary action and/or criminal penalties. Go over acceptable forms of identification with all clerks. Make sure they know that management will back them in instances where they must turn someone down for a purchase. We have included a sample of the "Employee Agreement" form we suggest having each employee sign for your files after training. Employee Agreement I hereby certify that I understand that Minnesota law prohibits the sale of tobacco products to persons under the age of 18 years. I have been trained by my employer in the State Law, City Ordinance, and Store Policy regarding carding of individuals requesting to purchase tobacco products. I also understand the possible penalties for violation of any of these Laws or policies. By my signature, I agree to comply with all Laws and store policies regarding these sales. In turn, management agrees to support my judgment in not making sales in questionable cases. Management also agrees to inform me of any changes in the Laws or store policies regarding tobacco sales. Employee's Signature Manager's Signature Date Date This agreement will be maintained in our personnel file as part of your permanent employee record. Minnesota Statutes Restricting Youth Access to Tobacco Products 609.685 SALE OF TOBACCO TO CHILDREN Subdivision 1. Definitions. For the purposes of this section, the following terms shall have the meanings respectively ascribed to them in this section. (a) "Tobacco" means cigarettes; cigars; cheroots; stogies, perique; granulated, plug cut, crimp cut, ready rubbed, and other smoking tobacco; snuff; snuff flour; cavendish; plug and twist tobacco; fine cut and other chewing tobaccos; shorts; refuse scraps; clippings, cuttings and sweeping of tobacco; and other kinds and forms of tobacco, prepared in such a manner as to be suitable for chewing or smoking in a pipe or other tobacco -related devices. (b) "Tobacco related devices" means cigarette papers or pipes for smoking. Subd. la. Gross misdemeanor. (a) Whoever sells tobacco to a person under the age of 18 years is guilty of a gross misdemeanor. (b) It is an affirmative defense to a charge under this subdivision if the defendant proves by a preponderance of the evidence that the defendant reasonably and in good faith relied on proof of age as described in section 340A.503, subdivision 6. Subd. 2. Misdemeanor. Whoever furnishes tobacco or tobacco - related devices to a person under the age of 18 years is guilty of a misdemeanor. Subd. 3. Petty misdemeanor. Whoever possesses, smokes, chews, or otherwise ingests, purchases, or attempts to purchase tobacco or tobacco related devices and is under the age of 18 years is guilty of a petty misdemeanor. This subdivision does not apply to a person under the age of 18 years who purchases or attempts to purchase tobacco or tobacco related devices while under the direct supervision of a responsible adult for training, education, research, or enforcement purposes. Subd. 4. Effect on local ordinances. Nothing in subdivision 1 to 3 shall supersede or preclude the continuation or adoption of any local ordinance which provides for more stringent regulation of the subject matter in subdivision 1 to 3. Subd. 5. Exception. Notwithstanding subdivision 2, an Indian may furnish tobacco to an Indian under the age of 18 years if the tobacco is furnished as part of a traditional Indian spiritual or cultural ceremony. For purposes of this subdivision, an Indian is a person who is a member of an Indian tribe as defined in section 257.351, subdivision 9. 325E.075. SALE OF TOBACCO BY VENDING MACHINE Subdivision 1. Definition. For purposes of this section, "tobacco' has the meaning given the term in section 609.685. Subd. 2. Prohibition. Tobacco may be offered for sale or sold in this state by or from a vending machine or appliance or any other medium, device, or object, designated or used for vending purposes only in the following locations: (1) in an area within a factory, business, office, or other place not open to the general public or to which persons under 18 years of age are not generally permitted access. (2) in an on -sale alcoholic beverage establishment or an off -sale liquor store, if: (i) the tobacco vending machine is located within the immediate vicinity, plain view, and control of a responsible employee, so that all tobacco purchases will be readily observable by the employee; (ii) the tobacco vending machine is not located in a coatroom, restroom, unmonitored hallway, outer waiting area, or similar unmonitored area; and (iii) the tobacco vending machine is inaccessible to the public when the establishment is closed. (3) in other establishments, upon the following conditions: (i) it must be located within the immediate vicinity, plain view, and control of a responsible employee, so that all tobacco purchases will be readily observable by " that employee; it must not be located in a coatroom, restroom, unmonitored hallway, outer waiting area, or similar unmonitored area; and it must be inaccessible to the public when the establishment is closed; and (ii) it must be operable only by activation of an electronic switch operated by an employee of the establishment before each sale, or by insertion of tokens provided by an employee of the establishment before each sale. Subd. 3. Local regulation. The governing body of a local unit of government may adopt rules or ordinances relating to vending machine sale of tobacco that are more restrictive than the restrictions imposed by this section. 325.E07. CIGARETTE VENDING MACHINES, NOTICE RELATING TO SALES Subdivision 1. In a conspicuous place on each cigarette vending machine in use within the state, there shall be posted, and kept in easily legible form and repair, by the owner, lessee, or person having control thereof, a warning to persons under 18 years of age which shall be printed in bold type letters each of which shall be at least one-half inch high and which shall read as follows: "Any Person Under 18 Years of Age is Forbidden By Law To Purchase Cigarettes From This Machine." Subd. 2. Any owner, any lessee, and any person having control of any cigarette vending machine which does not bear the warning required by this section shall be guilty of a misdemeanor. DISTRIBUTION OF TOBACCO PRODUCTS 325F.76 Definitions. Subdivision 1. Terms. For the purposes of section 325F.76 to 325F.78, the terms defined in this section have the meanings given them. Subd. 2. Chewing tobacco. "Chewing tobacco" means loose tobacco or a flat compressed cake of tobacco that is inserted into the mouth. Subd. 3. Distribute. "Distribute" means to give products to the general public at no cost or at nominal cost for product promotional purposes. Subd. 4. Package. "Package" means a pack, box, or container of any kind in which a smokeless tobacco product is offered for sale, sold, or otherwise distributed. Subd. 5. Person. "Person" means any individual, partnership, corporation, or other business or legal entity. Subd. 6. Smokeless tobacco. "Smokeless tobacco" means chewing tobacco or tobacco snuff. Subd. 7. Tobacco snuff. "Tobacco snuff' means a small amount of shredded, powdered, or pulverized tobacco that may be inhaled through the nostrils, chewed, or held in the mouth of an individual user. 325F.77 PROMOTIONAL DISTRIBUTION Subdivision 1. Repealed 1987 Subd. 2. Repealed 1987 Subd.3. Legislative intent. Because the state prohibits both the use of tobacco products by minors and the furnishing of tobacco products to minors, and because the enforcement of an age-related restriction on the promotional distribution of tobacco products is impractical and ineffective, it is the intent of the legislature to control the distribution of these products and discourage illegal activity by prohibiting all promotional distribution, except as allowed in this section. Subd. 4. Prohibition. No person shall distribute smokeless tobacco products or cigarettes, cigars, pipe tobacco, or other tobacco products suitable for smoking, except that single serving samples of tobacco may be distributed in tobacco stores. 609.681 UNLAWFUL SMOKING A person is guilty of a misdemeanor if the person intentionally smokes in a building, area, or common carrier in which "no smoking" notices have been prominently posted, or when requested not to by the operator of the common carrier. FDA REGULATIONS & EFFECTIVE DATES February 28, 1997: • Prohibit retailers from selling cigarettes or smokeless tobacco to persons under age -18. • Require retailers to check photographic ID's of purchasers 26 and younger for proof of age. August 28, 1997: • Eliminate free samples, the sale of single cigarettes and packages with fewer than 20 cigarettes. • Ban vending machines and self-service displays except in facilities where only adults are permitted, such as certain nightclubs totally inaccessible to persons under 18. • Ban outdoor advertising within 1,000 feet of schools and publicly -owned playgrounds. • Permit black -and -white text -only advertising for all other outdoor advertising, including billboards, signs inside and outside of buses, and all point-of-sale advertising. • Prohibit sale or giveaway of products like caps or gym bags that carry cigarette or smokeless tobacco product brand names or logos. August 28. 1998: • Prohibit brand-name sponsorship of sporting (including teams and entries) or entertainment events, but permit it in the corporate name. Plymouth City Code 1150.01 Section 1150 - Tobacco and Related Products 1150.01. License Required. No person shall directly, by coin machine, or otherwise, keep for retail sale, sell at retail, or otherwise dispose of, any cigarette, cigarette wrapper, tobacco, or Tobacco Products at any place in the City unless they have obtained a license therefor as provided herein. 1150.03. Application for License; Granting of License by Council: Issuance of License by Clerk. Application for such license shall be made to the City Clerk and shall state the full name and address of the applicant, the location of the building to be occupied by the applicant in the conduct of the business, the kind of business to be conducted, and such other information as the City Clerk may require. The license shall be granted by the City Council and issued by the City Clerk upon payment of the required fee. 1150.05. License Fee, Term; Date. The fee for a license is set by Chapter X. The license expires on December 31st. (Ord. 96-4, 02/vm) 1150.07. Prohibited Acts. (a) No person shall sell, give away, or otherwise furnish any cigarette, cigarette paper, tobacco, or Tobacco Products to any person under the age of eighteen years. (b) No person shall keep for sale, sell, or dispose of any cigarette or other Tobacco Product containing opium, morphine, jimson weed, bella donna, strychnia, cocaine, marijuana, or any other deleterious or poisonous drug, except nicotine. (c) No person shall sell or dispense any Tobacco Product through the use of a vending machine, unless the vending machine is electronically activated for each transaction by the licensee or a person in their employ, or unless the vending machine is in a nonpublic area with no minor access as verified by a premises survey conducted -by the Department of Public Safety. (d) No person shall offer for sale any Tobacco Product by means of Self -Service Merchandising, unless the display is in direct view of and in no case more than 20 feet from the primary cashier and meets one of the following security requirements: within three feet of the cashier or, in an enclosed case which registers an audible alarm when opened or, in a totally controlled separate area, or an approved electronic security system is in place. The exception requirements must be verified by a premises survey conducted by the Department of Public Safety. (e) Every licensee shall be responsible for the conduct of its employees while on the licensed premises and any sale or other disposition of tobacco products by an employee to a person under 18 years of age shall be considered an act of the . Plymouth City Code 1150.09 licensee for purposes of imposing an administrative fine, license suspension, or revocation. (Ord. 96-4, 02121196) 1150.09. Display of License on Premises. Every such license shall be openly displayed in the place of business to which it has been issued. 1150.10. Violations. (a) Misdemeanors. Any person who violates this ordinance shall be guilty of a Misdemeanor. (b) Administrative. Civil Penalties; Individuals. Any person who sells any Tobacco Product to a person under the age of 18 years is subject to an administrative penalty; and any person under the age of 18 who attempts to purchase a Tobacco Product is subject to an administrative penalty. The City Council may impose administrative penalties as follows: First violation. The City Council may impose a civil fine not to exceed $500. Second violation within 12 months. The City Council may impose a civil fine not to exceed $750. Third violation within 12 months. The City Council may impose a civil fine not to exceed $1,000. (c) Administrative Civil Penalties; Licensee. If a licensee or an employee of a licensee is found to have sold tobacco to a person under the age of 18 years, the licensee shall be subject to an administrative penalty as follows: First violation. The City Council may impose a civil fine not to exceed $500 and/or suspend for a period not to exceed 10 days. Second violation within 12 months. The City Council may impose a civil fine not to exceed $750 and/or suspend for a period not to exceed 20 days. Third violation within 12 months. The City Council may impose a civil fine not to exceed $1,000 and/or suspend for a period not to exceed 30 days. (d) Defense. It is a defense to the charge of selling tobacco to a person under the age of 18 years, that the licensee or individual, in making the sale, reasonably and in good faith relied upon representation of proof of age described in State Statute section 340A.503, subdivision 6, paragraph (a). Plymouth City Code 1150.10 (e) (e) Exemption. A person, no younger than 15 and no older than 17, may be enlisted to assist in the tests of compliance, provided that written consent from the person's parent or guardian has been obtained and that the person shall at all times act only under the direct supervision of a law enforcement officer or an employee of the licensing department, or in conjunction with an in-house program that has been pre -approved by the Department of Public Safety. A person who purchases or attempts to purchase tobacco -related products while in this capacity is exempt from the penalties imposed by subdivisions a and b above. (f) Revocation. The City Council has the authority to revoke any license as noted in Section 1005.21. (Ord. 96-4, 02121196) PENALTIES DEFINED: Gross misdemeanor Whoever sells tobacco to a person under the age of 18 years is guilty of a gross misdemeanor. Penalty is up to a $3,000 fine and/or up to one year in jail. Misdemeanor Whoever furnishes tobacco or tobacco -related devices' to a person under the age of 18 years is guilty of a misdemeanor. Penalty is up to a $700 fine and/or up to 90 days in jail. Petty misdemeanor Whoever uses, purchases, or attempts to purchase tobacco or tobacco related devices and is under the age of 18 years is guilty of a petty misdemeanor. This does not apply to a person under the age of 18 years who purchases or attempts to purchase tobacco or tobacco related devices while under the direct supervision of a responsible adult for training, education, research, or enforcement purposes. Penalty is a fine of up to $200. Tobacco -related devices: cigarette papers and pipes. It is also a misdemeanor to furnish a butane lighter to a minor. State Law addresses acceptable identification for proof of age for the purchase of alcohol products. We recommend the same guidelines for proof of age for the purchase of tobacco products. 340A.503 PROOF OF AGE Subd. 6. Proof of age; defense. (a) Proof of age for purchasing or consuming alcoholic beverages may be established only by one of the following: (1) a valid driver's license or identification card issued by Minnesota, another state, or a province of Canada, and including the photograph and date of birth of the licensed person; (2) a valid military identification card issued by the United States Department of Defense; or (3) in the case of a foreign national, from a nation other than Canada, by a valid passport. Be aware that if a store sells to an underage individual and officers are able to determine that the youth used an altered identification card, neither the clerk nor the store would suffer any consequences of the sale. You must, however, make a good faith effort to check the identification card. If the officer believes the alteration is obvious and should have been spotted by the clerk, he may still charge the clerk with sale to a minor. In closing, we would like to again thank you for your cooperation in this project. Many resources are available to assist you in educating your clerks on requesting and checking identification and complying with the Law. These include several programs which can be obtained either free of charge or at minimal cost. They include the "We Card" program by the Coalition for Responsible Tobacco Retailing which can be obtained free of charge by calling 1 -800 -WE ID 968 or faxing 1-800-935-3968. The Minnesota Smoke -Free 2000 Coalition also has a training program available at $12 for the basic kit. Their mailing address is Minnesota Smoke -Free 2000 Coalition, Ford Center #525, 420 North Fifth Street, Minneapolis MN 55401. Your local police department is also available to assist with employee training sessions. Basic training includes when and how to ask for identification, what to look for on an I/D card, and how to spot an altered card. The department also has some samples and videos available for your use. Be sure to call Plymouth's Public Safety Education Specialist, Sara Cwayna at 509-5198 and she would be happy to arrange for one of these training sessions for you.