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HomeMy WebLinkAboutAgenda Packets - 2013/11/04CITY OF MOUNDS VIEW CIT Y COUNCIL WORK SESSION AGENDA MOUNDS VIEW CITY HALL Monday, November 4, 201` 7:00 p.m. ROLL CALL: Flaherty, Gunn, Hull, Meehlhause, Mueller Citizens may speak to issues not on tonight's agenda. Before speaking, please give your full name and address for the minutes. Also, please limit your comments to three minutes. 1. Discuss Proposed Sign Code Amendments 2. Review 2014 Fee Schedule 3. E -Cigarettes 4. Discuss Economic Development Specialist Position 5. Discuss Whether to Utilize a Facilitator for the 2014 Strategic Planning Session 6. Review Policy on Disposition of Surplus / Excess Property Next Work Session: Monday, December 2, 2013, at 7pm Next City Council Meeting: TUESDAY, November 12, 2013, at 7pm SOUNDS VIEW xv of Mounds view Staff To: Honorable Mayor and City Council From: Heidi Heller, Planning Associate Item Title/Subject: Sign Code Amendment Discussion Item No: 01 Meeting Date: November 4, 2013 Type of Business: Worksession Administrator Review: The corridor is the City Council's priority this year and the Planning Commission has been asked to review the Zoning Code in order to better promote and accommodate development along County Road 10. The Planning Commission has started by discussing general development ideas to make the Corridor look better. One of those ideas was changing the style and height allowances of the signage that is along the Corridor to only allow monument style signs, and to reduce the setback amount. The Commission discussed sign code changes and proposed a few changes, some that would affect signs for the entire City, and others that are specific to properties along the Corridor. The Commission recommends lowering the height limits in the Business, Industrial and CRP (Conservancy, Recreation & Preservation) zoning districts from 20 feet or 35 feet down to 16 feet, and requiring some type of masonry materials (brick, stone, stucco) for all signs throughout the City. The other suggestions are reducing the minimum setback amount and sight triangle amount from property lines that are adjacent to the County Road 10 corridor. Since there is already a lot of excess right-of-way space between the street pavement and the front property lines, the Commission felt it would not cause problems to allow signs to move closer to County Road 10. The side setback requirements are not changing. The Commission reviewed photos of several existing business signs in the City and felt that many were so tall, and even with the large County Road 10 right-of-way and 50mph speed limit, there is no real need for signs to be 20+ feet tall. The Commission based their decision of a 16 foot height limit by comparing the sign heights that currently exist in the City and deciding on an amount that is in the middle of the height ranges. The photos of the signs and their dimensions are included in this report. The Commission has approved Resolution 993-13 with the discussed amendments. The proposed changes are underlined and highlighted in blue, and deleted language is stricken and highlighted in red. There already is language for nonconforming signs: signs that don't meet the current City Code, but met the code requirements when they were installed. Recommendation Review and discuss the attached resolution with the proposed sign code amendments. Sincerely, Heidi Heller, Planning Associate Attachments: 1. Photos of existing signs in the City 2. Existing language in Chapter 1008.13 for nonconforming signs 3. Resolution 993-13 FedTech on Mustang Circle 12' tall x 8' wide SA on County Road 10 & County Road I Just the top "sign" square is 13' tall x 10' wide (couldn't determine height of sign and pole) Wynnsong movie theater 25' tall x 15' wide Edgewood Commerce Center 20' tall x 14' wide Mounds VieNN t' f ;�.�: .�.Animal Hospital Auto Outlet 26' tall Mounds View Animal Hospital 2625 County Road 10 9' tall x 10' wide CVS Pharmacy 24' tall x 12' wideCvS Existing language for Nonconforming signs: 1008.13 NONCONFORMING SIGNS: It is the intent of the City with flus Chapter that nonconforming signs shall not be enlarged or expanded, nor should a person use this Chapter as grounds for adding other signs or uses prohibited elsewhere in the same district. It is further the intent of the City with this Chapter to permit legal nonconforming signs to remain if such signs are safe, maintained in good condition and if such signs have not been abandoned, moved or removed. Any sign, including a billboard, legally existing at the time of the passage of this Ordinance that does not conform to the provisions of this ordinance shall be considered a legal nonconforming sign and may be continued including through repair, replacement, restoration, maintenance, or improvement but not including the moving, enlargement or expansion of the sign. "Expansion" shall be defined as any structural alteration, change or addition that is made outside of the original sign structure or design. (Ord. 679, 5-29-01; Ord. 769, 5-8-06; Ord. 816, 1-22- 09) Subd. 1. Nothing in this Ordinance shall prevent the return or repair of a sign structure that has been declared unsafe by the Building Official to a safe condition. (Ord. 679, 5-29-01; Ord. 769, 5-8-06; Ord. 816,1-22-09) Subd. 2. When any lawful nonconforming sign is discontinued for more than one (1) year, or is changed to a conforming sign, any future sign or sign structure shall meet the provisions of this Chapter. (Ord. 679,5-29-01; Ord. 769, 5-8-06; Ord. 816,1-22-09) Subd. 3. Any legal, nonconforiung sign shall be removed and shall not be repaired, replaced, restored, or rebuilt if it is damaged by fire or other similar peril to the extent of greater than fifty percent (50%) of its market value at the time of destruction and no sign permit or building permit (if applicable) has been applied for within one hundred eighty (180) days of the date of destruction. The City's Building Official shall be responsible for making the deternunation whether a nonconfomring sign has been destroyed greater than fifty percent (50%) of its market value at the time of destruction. hi making this determination, the Building Official shall consider the market value of the entire sign at the time prior to the destruction and the replacement value of the existing sign. In the event a building permit is applied for within one hundred eighty (180) days of the date of the damage or destruction and the sign did not withstand damage greater than fifty percent (50%) of its market value at the time of destruction, the City may impose reasonable conditions upon the building permit in order to mitigate any newly created impact on adjacent properties. (Ord. 679, 5-29-01; Ord. 769, 5-8-06; Ord. 816, 1-22-09) Subd. 4. A lawful nonconforming sign shall not be changed to a similar nonconforming sign or to a more restrictive nonconforming sign. (Ord. 769, 5-8-06) Subd. 5. Sign Regulation Conformance. Should a sign owner, operator or contractor permanently move a nonconforming sign or a nonconforming sign structure for any reason for any distance, it shall thereafter conform to the regulations of this Chapter and with the zoning district standards that it is in after the owner or contractor moves it. (Added, Ord. 816, 1-22-09) MOUNDS VIEW PLANNING COMMISSION RESOLUTION NO. 993-13 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION RECOMMENDING AMENDMENTS TO THE CITY CODE TITLE 1008 REGULATING SIGNS IN THE CITY; SPECIAL PLANNING CASE 189-13 WHEREAS, the City Council desires to improve the aesthetics and promote development of the County Road 10 corridor; and, WHEREAS, the Planning Commission has reviewed the City Code regarding the allowed heights and setbacks of ground signs; and; WHEREAS, City Staff has recommended that the ground sign height limits and setbacks along County Road 10 be reduced and the construction design be improved to require masonry; and, WHEREAS, the Planning Commission agrees with the City Staff recommendation to reduce the ground sign height allowed in the business, industrial and conservancy, recreation and preservation zoning districts; and, WHEREAS, the Planning Commission agrees with the City Staff recommendation to reduce the ground sign setback requirements for properties with frontage on County Road 10; and, WHEREAS, City staff has amended Chapter 1008.09 of the Mounds View City Code by deleting the str ck language and adding the underlined text as follows: Subd. 3. Ground Sign Height, by District: The following table represents the maximum height allowed for ground signs in each zoning district. (Amended, Ord. 829, 9-3-09) R-1 R-2 R-3 R-4 R-5 B-1 B-2 B-3 B-4 1-1 CRP PUD (�) (�) 8 Pi 8 29 2-0 16 (3) 35 16 (3) 35 16 35 16(3) 3-5 (3) 16 (2) (3) 16 (1) No ground sign, other than home occupation, campaign, real estate, incidental and temporary signs shall be allowed in these districts. (Z)_ Signage requirements within a PUD shall be as indicated by the PUD Narrative document. If no such document exists, signage shall be as allowed for a B-3 zoning District. (Ord. 679, 5-29-01) ResolutJon 993-13 Page 2 c3) Maximum billboard sign height in some locations is 45 feet. Refer to Section 1008.10, Subdivision 6 of this Code. (Ord. 769, 5-8-06). WHEREAS, City staff has amended Chapter 1008.10 of the Mounds View City Code by deleting the stricken language and adding the underlined text as follows: 1008.10: SPECIFIC SIGN TYPE STANDARDS AND REQUIREMENTS: Subd. 1. Ground Signs: The following standards shall be maintained for all ground signs, excluding incidental, temporary, home occupation, campaign, identification and real estate signs: (Ord. 679, 5-29-01) a. No part of a ground sign shall be nearer than three feet (3') to any building unless such sign is placed parallel to the side of the building. (Ord. 679, 5-29-01) b. No part of a ground sign shall be nearer than 15 feet (15') to any perimeter lot line, nor located within a thirty (30) -foot sight triangle on any property abutting two (2) intersecting street right of ways. However, ground signs on properties that front County Road 10 may foot sight triangle. (Refer to the graphic below.) (Ord. 679, 5-29-01) County Road X Right of Way E 30 ft Sight Triangle* 1 w / 1 0 ...•.•.t Sign is set back 1 I 15 feet from both front and I side property lines. Signs may have a 5 foot setback from 1 Countv Road 10. 1 Property I Sign cannot be located within sight triangle. 1 I 0 1 0 � I cco v m I -< Lines I 1 The sight triangle is formed by connecting the two end points of 30 -foot lines extending in both directions from the intersection of two property lines abutting a street or highway. The sight Resolution 993-13 Page 3 c. The owner, lessee or occupant of the land on which the ground sign is located and the owner of the sign shall keep the property on which the sign is located free of long grass, weeds or other rank growth, rubbish or debris. (Ord. 679, 5-29-01) d. All parts of ground signs shall be designed for wind pressure of not less than thirty (30) pounds per square foot, and ground signs of wood construction shall have all members which extend into the ground protected from decay by treatment with a preservative approved by the Building Inspector. (Ord. 679, 5-29-01) e. No permit shall be granted for the location of any ground sign having a sign area of more than forty (40) square feet within one hundred feet (100') of any single-family residence. (Ord. 679, 5-29-01) f. Notwithstanding the provisions of subdivision 6 of this Section (1008.10, subdivision 6), no more than one (1) pole or pylon sign shall be allowed per lot. However, the ground sign area allowance may be divided between one (1) pole or pylon sign and a monument sign or between multiple monument signs, subject to the requirements herein, provided that one (1) or more of the following conditions are applicable: (Ord. 679, 5-29-01; Ord. 769, 5- 8-06; Ord. 816, 1-22-09) (1) The lot abuts multiple street right-of-ways, in which case a sign may be located along each frontage. (Ord. 679, 5-29-01) (2) There are multiple curb cuts or driveways accessing the property, in which case a sign may be located near each access point or driveway, provided the signs are separated by no less than two hundred feet (200'). (Ord. 679, 5-29-01) (3) The width of the lot, as measured along its longest street frontage, exceeds two hundred and fifty feet (250'), in which case multiple signs may be located along the long frontage provided such signs are separated by no less than two hundred feet (200'). (Ord. 679, 5-29-01) (4) The property or properties are within an approved Planned Unit Development (PUD). (Ord. 679,5-29-01) q Ground signs must include masonry construction materials such as stone brick or stucco. Resoiu is , 0 343 Page Z.: WHEREAS, amending the City Code to reduce ground sign height limits and setbacks, and require higher quality construction materials would better serve the City's goal of improving the aesthetics and promoting development along the County Road 10 corridor; and, WHEREAS, the Mounds View Planning Commission concurs that an amendment to the City Code is warranted and justified. NOW, THEREFORE, BE IT RESOLVED that the Mounds View Planning Commission recommends approval of amendments to Chapter 1008 of the Mounds View City Code to add regulations as defined herein. BE IT FINALLY RESOLVE® that the Mounds View Planning Commission directs staff to forward this resolution to the City Council prior to approval of the minutes. Adopted this 16th day of October, 2013. Gary Stevenson, Chairperson ATTEST: James Ericson, City Administrator (SEAL) Item No: 2 Meeting Date: November 4, 2013 Type of Business: WS Administrator Review: City of Mounds View Staff Report_ To: Honorable Mayor and City Council From: Desaree Crane, Assistant City Administrator Item Title/Subject: Review Draft of 2014 Fee Schedule Attached is the draft of the 2014 Fee Schedule for your review. This was reviewed by all Department Heads, and a final draft will be presented to the City Council by Public Hearing on Monday, November 25, 2013. Changes to the Fee Schedule are highlighted in red and blue. Respectfully Submitted, �m Desaree Crane 1 Schi.e M / J �_;; _ ....................Bu lding/Communk"Y Dpv. Delated Fees a............................................................................Valuation Table b..................................................................................Surcharges c .................... General Construction, Home, Building Permits, Misc. Accessory Buildings Additions & Remodels, Residential Deck Demolition & Wrecking DoorlWindow Installation Driveways, Sidewalks, Parking Lots and Patios Electrical Work Elevators Fences / Kennels Fire Permits Fireplaces HVAC Irrigation Systems Manufactured Homes Moving Buildings Plumbing Work Porch Raising, Shoring Reshingling Re-siding/Stucco Satellite Dishes Sheds Signs/Billboards Sprinkler Systems Swimming Pools Temporary Office Tent, Temporary Telecommunication Antenna Warehouse Racking Systems (commercial) Windows P. 3 P. 3 P. 4 P. 4 d .......................................... Other Inspections/Rannung Fees P. 7 Building Inspections Change of Address Comprehensive Plan Amendment Conditional Use Permit Contractor Licenses Development/Site Plan Review Housing and Fire Inspection Fees Interim Use Permit Interim Use Permit Amendment Investigation Fee Lead Safety Certification Verification Park Dedication Fee Plan Review Fee Planned Unit Development/Amendment Refund Policy Rezoning Street or Easement Vacation Subdivisions Text Amendment, Zoning Code Text Amendment, Other Code Variance Wetland Alteration Permit Wetland Buffer Permit Zoning Letter II.......... Miscellaneous (copies, maps, agendas, etc.) Certified Copies Filing Fee for Public Office Insufficient Fund Checks (NSF) Municipal Code Notary Public Pending Assessment Search Photocopies DVD Copies Zoning Code CD Rom 50th Anniversary Cookbook Mounds View History Book P. 9 2014 Fee Schedule Puge 1 of 21 Ill ................ o Police/ Administrative Offenses IV........................ ........................ ..... Licenses Amusement Centers/ Devises/Rides, Carnivals, Circuses Automobile Sales Bowling Alley Cigarette and Tobacco Contractor's License Dog Licenses Garbage and Rubbish Hauler License Gasoline Station License Kennel License Liquor Licenses/Investigation Fee Rental Dwelling License Pawn Shops Peddlers/Transient Merchant Recuperation of Half Way House Restaurant License Therapeutic Massage/Investigation V.. Park, Recreation, and MVCC Facility Rental Fees P. 13 Banquet and Conference Center Rental Gymnasium Rental Athletic Field Rental Park Building and Picnic Shelter Rental Vi..........„a......................... Public Works Related Fees P. 18 Call Out Rate Schedule Right -of Way Management Fees Municipal Water System Fees Municipal Sanitary Sewer System Fees Surface Water Management Utility Fees Street Lighting Utility Fees Construction Site and land Disturbance Fees Other Management Public Works Fees 2014 reo SchLellilc Page 9 or 21 FUNIEUNUTIM15 The following Valuation Table shall be used to determine fees for those permits indicated below and in all cases where the work is of such a nature that the permit fees cannot be determined from the schedule established below for such work. The minimum fee for all permits shall be $29.50 for residential permits and $49.50 for commercial permits unless otherwise specified. $1 to $500 $29.50 $501 to $2,000 $28 for the first $500 plus $3.70 for each $28.63 per sq. additional $100 or fraction thereof, to and Detached Garages & Sheds, > 120 sq. ft. w/ concrete floor including $2,000 $2,001 to $25,000 $83.50 for the first $2,000 plus $16.55 for each $10.02 per sq. additional $1,000 or fraction thereof, to and Carport / Lean-to including $25,000 $25,001 to $50,000 $464.15 for the first $25,000 plus $12 for each additional $1,000 or fraction thereof, to and First Floor and basic floor area including $50,000 $50,001 to $100,000 $764.15 for the first $50,000 plus $8.45 for each $64.71 per sq. additional $1,000 or fraction thereof, to and Shell Only including $1000,00 $101,001 to $500,000 $1,186.65 for the first $100,000 plus $6.75 for $26.48 per sq. each additional $1,000 or fraction thereof, to and Gazebo/Outdoor Living Room including $500,000 $500,001 to $1,000,000 $3,886.65 for the first $500,000 plus $5.50 for each additional $1,000 or fraction thereof, to and including $1,000,000 $1,000,001 and up $6,636.65 for the first $1,000,000 plus $4.50 for each additional $1,000 or fraction thereof =.« Accessory Buildings: Garages & Sheds Attached Garage $28.63 per sq. % Detached Garages & Sheds, > 120 sq. ft. w/ concrete floor $15.75 per sq. ft. Detached Garages & Sheds, > 120 sq. ft. w/ wood floor $10.02 per sq. ft. Carport / Lean-to $14.32 per sq. ft. Residential Dwelling Additions First Floor and basic floor area $83.51 per sq. ft. Second Floor $64.71 per sq. ft. Shell Only $47.51 per sq. ft. Addition mobile home $26.48 per sq. ft. Gazebo/Outdoor Living Room $29.17 per sq ft. 2014 Fee Schedule rage 3 of 21 Basement For valuation -based permits, the surchar Unfinished, New Construction $16.44 per sq. ft. Finished, New Construction Basement Finish/Remodel, Existing $27.81 per sq. $11.15 per sq. ft. ft General Remodel $22.33per sq. ft. Deck $1,200 +.0002 x Value - $3,000,000 $4,000,000 to $5,000,000 Residential $9.92 per sq. ft. Porch permit fee exceeds $10,000). Open/Screen only $25.17 per so. ft. Three -Season (wood frame/windows/doors Not Heated $52.83 per sq. ft. Swimming Pools See Chapter 1009 Use the above table Above ground --Permanent (over 24" in depth and over 5,000gallons) $8.00 per sq. ft. Below ground Above ground — Temporary (over 24" in depth and under 5,000gallons) $31.82 per sq. ft. $30 (zoning permit) Building Surcharge: Where the fee for the permit is based upon valuation, the surcharge is as follows: Building Surcharge For valuation -based permits, the surchar e is as follows Valuation of Work Surcharge Computation $1,000,000 or less .0005 x valuation $1,000,000 to $2,000,000 $500 + .0004 x Value - $1,000,000 $2,000,000 to $3,000,000 $_90_0+.0003 x Value - $2,000,000 $3,000,000 to $4,000,000 $1,200 +.0002 x Value - $3,000,000 $4,000,000 to $5,000,000 $1,400 + .0001 x Value - $4,000,000 Greater than $5,000,000 $1,500 +.00005 x Value - $5,000,000 For fixed -fee permits, the surcharge shall be $5.00 per permit (or .0005 of the permit fee if permit fee exceeds $10,000). Heating & Plumbing Surcharge Residential $5.00 per permit (or .0005 of the permit fee if fee exceeds $10,010 . Commercial Use the above table C. GENERAL CONSTRUCTION, HOME, MISCELLANEOUS BUILDING PERMITS. (Surcharges not included in all figures listed below -- See Surcharge Section in Chapter 1006 for more information) Accessory Buildings Use valuation table Additions or Remodels Use valuation table Deck 30" and under, or not attached to $30 (no surcharge) dwelling Use valuation table Deck above 30" 20'14 Pee scheduic Page 4 of 91 Demolition and Wrecking $30 plus $3.00 per 1,000 cubic feet or fraction thereof over 2,000 cubic feet plus $5.00 surcharge Residential Door or Window Installation Change Opening/Egress $40 for first windows/door plus $12.50 for each additional window/door (plus $5.00 surcharge) Use Existing Rough opening $30 for first window/door plus $5.00 for each additional window/door (plus $5.00 surcharge) Driveways, Sidewalks, Parking Lots, Patios; New Installation or Overlay (No Surcharge) * A Right-of-way permit is also required for any construction that disrupts City -owned streets, curbing, sidewalks, etc. Residential Concrete/Asphalt/Brick: $30 for first 500 (R-1 or R-2 Overlay or Seal Coating with no square feet plus $2 for each additional 100 expansion, no permit needed.) square feet or fraction thereof (no surcharge) Gravel*: $20 (no surcharge) * See zoning code for gravel limitations. R-4 or R-4 Overlay $25 for first 500 square feet plus $2 for each additional 500 square feet. Commercial Use Valuation Table Electrical Work -- Same as established bby the Minnesota State Board of Electricity. Elevators Use valuation table Fences/Kennels Six feet and below $30 per installation (no surcharge) Above six feet $40 per installation(plus $5.00 surcharge) Fire Permits Fire Alarm Systems/Panels $100 Fire Works Display $100 Fireworks Sales $350 (business selling only fireworks) $100 (business selling fireworks & other retail) Temporary Tent $50 Tank Installation (fuel, oil, gas, etc.) $100 per tank (no surcharge) Tank Removal (fuel, oil, gas, etc.) $50 per tank (no surcharge) Operational Permits JLQ $25(annually) Fireplaces Wood/Corn burning Stove (Building Permit) $30 plus $5.00 surcharge Gas Fireplace See Mechanical Insulation $30 plus $5.00 surcharge Manufactured Homes (See Chapter 1110) Installation Work Use valuation table Mechanical (Gas hook up) $25 (plus $5.00 surcharge) 2014 Fee Schedule Page 5 of 21 Mechanical (Heating, Ventilation, Air Conditioning & Gas) Residential: Air Conditioning $35 per unit Furnace $30 per unit replacement, $40 per unit new Air Exchanger $30 per unit Sheet Metal/Duct Work $30 Ventilation Systems $15 for first fan plus $5 for each add'I fan Gas Fireplace $30 (includes incidental piping) Gas/Oil Piping $30 per unit Steam, Hot Water Heating $40 per unit Commercial Use valuation table plus surcharge of .0005 of contract rice Irrigation System (Back Flow Preventer) See Plumbing Fees Moving Buildings See Chapter 1007 Principal Structure $175 per building (plus $5.00 surcharge) Accesso Structure (larger than 400sq. ft. $50 per building (plus $5.00 surcharge) Accessory Structure 400 sq. ft. or less $30 Plumbing Work - (Chapter 1004 Residential - Plumbing fixture, devices, $22 plus $8 per fixture (plus $5.00 Connections (Value more than $500) surcharge) Residential - PiXtLIFe ReplaGPMent­*aFAe $15 or 5% of value, whichever is greater tip epening) or Repair -Plumbing fixture, to $30 (plus $5.00 surcharge) devices Connections (Value $500 or less) Commercial (4 units and up) Use valuation table plus surcharge at .0005 times contract price Porch Use valuation table Raising, shoring Use valuation table Re -shingling Residential $25 for this first 500 square feet plus $4 for (Re -shingling permit not required for each additional 100 square feet or fraction buildings under 120 square feet) thereof (plus $5.00 surcharge) Commercial Use Valuation Table Re -siding / Stucco Residential $25 for the first 500 square feet plus $4 for (Re -shingling permit not required for each additional 100 square feet or fraction buildings under 120 square feet) thereof (plus $5.00 surcharge) Soffit/Fascia only (fee not required if Soffit/Fascia: $30 per installation (plus included with siding permit) $5.00 surcharge) Commercial Use Valuation Table Retaining Wall Four feet and below $30 (no surcharge) Above four feet $40 lus $5.00 surchar e Satellite Dishes (See Chapter 1103.18) $30 per installation (plus $5.00 surcharge) no permit required for mini dish systems) Reuasable Energy Systems (Solar. 100 geothermal, wind energy conversion 2014 Fee Schedule Page 6 of 21 Sheds 120 square feet and less $30 (no surcharge Signs (Zoning Permit, no surcharge) & Billboards (Building Permit, surcharge) See Chapter 1008 Signs up to 100 sq ft. $50 for the first 24 square feet plus $5.00 for each additional 25 square feet or fraction thereof up to 100 square Signs 100 sq. ft. and over $75 for the first 100 square feet plus $10 for each additional 100 square feet or fraction thereof Signs re-facing or altering $40 per installation Temporary Signs $40 per 21 day period (Limit 4 permits per year plus one additional permit for a banner Billboards/Billboard Alterations $250 per billboard (plus $5.00 surcharge) Sprinkler Systems Fire Suppression) Sprinkler; Residential Use Valuation Table (City fees waived for systems installed voluntarily) Sprinkler; Commercial Use valuation table plus surcharge at .0005 times the contract price Sprinkler Plan Check Fee 65% of permit fee (for new construction or 20 heads or more only) Residential Swimming Pools Permanent above or below ground Use Valuation Table Temporary 52" high or less $25(plus $5.00 surchar e Telecommunication Antenna $750 plus $5.00 surcharge per system (Building Permit Fee, see also Chapter 1124) installation. For installations on city property, fee is 7% of yearly rent to city (plus $5.00 surcharge) $50 each for swapping antennas Use valuation table plus surcharge at .0005 times the contract price. For installations on city property, fee is 7% of yearly rent to city (plus $5.00 surcharge) Warehouse Racking Systems (commercial) Use Valuation Table Windows See DoorM/indow Installation 2014 Fee Schedule Page 7 of 21 D. OTHER INSPECTIONS / PLANNING FEES Applicants are responsible for all costs incurred associated with the filing, review and processing of development applications. Such fees are to be paid in escrow up front or upon receipt of statement from the City of Mounds View. Fees may include but are not limited to costs for consultants retained by the City, consultant planning services, attorney, and engineer fees. A deposit may also be required to cover costs of public notices, materials and staff time spent in the review, research or preparation of materials associated with this application. The applicant shall be responsible for all reasonable incurred costs in excess of the initial fee and/or deposit amount. Any portion of the deposit not spent or encumbered shall be refunded to the applicant within 30 days after consideration of the application is completed. Payment of park dedication fees is required with subdivision applications. Application fees are not refundable. Inspections conducted outside of normal $63.25/hr. (Minimum charge two hours) business hours Inspections for which no fee is specifically $63.25/hr. (Minimum charge - one half hour) indicated Reinspection Fees $63.25/hr. Change of Address $150 Comprehensive Plan Amendment $500 Conditional Use Permit CUP R-1 to R-2 $200 All other Districts $400 CUP Amendment Same as CUP Fee Contractor Licenses See Chapter 1001 $60 after July 31st , $40 Contractors License Verification Fee $5 per permit See buildingprocedures) Development/Site Plan Review $400 Housing and Fire Inspection Fees See Cha ter 1012 Initial and Follow up Inspection No charge Each Additional Inspection $63.25/inspection (approved by Resolution 7330) Interim Use Permit (IUP) IUP Amendment Investigation Fee Lead Safety Certification Verification Fee Park Dedication Fee (See Ordinance 745) Plan Review Fee (* Refund Policy: No plan review fee may be refunded after review has been completed.) *Payment shall be received before plans are reviewed 2014 Fee Schedule , WU $400 Equivalent to permit fee (when work commences without an approved permit) $5 Up to 10% of fair market land value 65 percent of permit fee for all commercial permits and for residential permits for new dwellings, dwelling additions, garages, garage additions, decks, sheds over 216 square feet, and major remodeling. Additional Plan Review Fee required by changes, additions or revisions to plans $47/ hr. (Minimum charge one half hour) Plan review for outside consultants for plan Wage F of 91 Plan Review Fee -- "Similar" checking and inspections, or both. Actual costs including administrative and overhead costs. Where all units are the same or similar, each unit after first shall be 25% of original fee. Planned Unit Development (PUD) (See Chapter 1120 $750 PUD Amendment $400 Refund Policy All but $40 of the permit fee can be refunded within 100 days of application if work has not commenced. Rezoning $500 Street or Easement Vacation $250 Subdivisions Minor Subdivision Reapproval Fee $300 $50 Major Subdivision Reapproval Fee $600 $100 Text Amendment, Zoning Code $400 Text Amendment, Other City Code $300 Variance R-1, R-2 (Administrative) $100 (additional $125 if formal variance is required) Wetland Buffer Permit R-1 and R-2$30 All Other Districts $100 Wetland Alteration Permit R-1 and R-2 $200 All Other Districts $350 Zoning Code Review $200 Zoning Letter $50 @Ie MISCELLANEOUS FEES Certified Copies $5plus hotocopy fee of .25 per page Filing Fee for Public Office See Mounds View City Charter Insufficient Funds (NSF) checks (returned or $30 NSF checks Municipal Code $200 Notary Public $1 Plus anv Photoconvchar es Photocopies Black/White (8'/i' x 11"): $0.25/printed side Black/White (11" x 17"): $0.50 /printed side Black/White (24"x 36"): $2.00/printed side Color (8 'h" x 11"): $1.00/printed side Color (11" x 17"): $2.50/printed side Color (24"x 36"): $10.00/printed side Pending Assess rnents Search $10 '1014 Fee Schedule Pac ge 9 of 21 DVD Copies $15 Zoning Code CD Rom $15 50th Anniversary Mounds View Cookbook $5 Mounds View History Book $5 III. POLICE/ADMINISTRATIVE OFFFNSES Crime Free Multi Housing Participant No charge Driver License Record Out of state $6 Fingerprint Cards $46 20 for first card/$5 for each additional card Police/Accident Reports .25 for each page Police Reports Research $50 per hour research fee for all requests exceeding 100 pages. Certified Copy of Report $5 for certification and .25 per page Color Printed Co $2.00/ a e 35mm Standard Photos $1.00/print Cassette or Video tae $25.00 Electronic copies to Digital Media $15.00 per disc Impound Vehicle Storage Fee $15.00 per da 30' Stop Sin $15 Alcohol in public $50 Animal Violations Fee $25 for the 1st violation within 12 months $50 for the 2nd violation within 12 months $75 for the 3rd and subsequent violations Win 12 months Building and Fire Code $150 Blocking Driveways $100 False Alarm Charges $50 Third false alarm in a 2 month period $75 for each false alarm in excess of three in a twelve month period Fire Hydrant $25 Fire Lane $25 Garbage Dumping $100 Handicap Zone $200 House Numbers $25 Junk Vehicles See Property Based Violations Junk & Debris See Property Based Violations $20 Loads limits $150 Loitering $25 Other Illegal Parkin $15 Park and Recreation (Chapter 909 $25 Regulated Business Activit Title 500 $100 Signs (Chapter 1008 $100 Snowbirds $25 Loud Parties/Noise: Mufflers, Stereos and other violations of State and City Noise Codes $50 Pro erty Based Violations 1st Offense: $150 2014 Fee Schedule Page 10 of 21 IV. LICENSES (All licenses subject to a 10% late fee where applicable.) Amusement Devices and Centers (Chapter 506 2nd Offense (within 12 months): $300 Automobile Sales (Chapter 510 3rd Offense (within 12 months): $450 Amusement Rides, Carnivals, Circuses (Chapter 506 Administrative Hearing: $50 Tobacco Penalties, Sale to. Minors: Administrative Penalties for Individuals 1st Offense: $100 Subsequent Offenses The fine increases by $50 for each $60 per year Prorated after July 31st $40 subsequent offense within a 24 month period Truck parking $25 Watering Ban Violations 1st violation Written Warning Donation Collection Bin 2nd violation $25.00 $105 plus $42 per vehicle per year 3rd violation $50.00 Kennel (Chapter 701 4th violation $100.00 Commercial 5th violation $200.00 6th violation Turned over to the City Attorney for criminal prosecution of theft Wetlands (Chapter 1010 $150 Zoning Title 1100 $150 IV. LICENSES (All licenses subject to a 10% late fee where applicable.) Amusement Devices and Centers (Chapter 506 $16 per location plus $16 per machine Automobile Sales (Chapter 510 $204 per year Amusement Rides, Carnivals, Circuses (Chapter 506 $133 for first day plus $21 for each additional da Bowling Alleys (Chapter 507 $21 per aIle Cigarette and Tobacco License Fee (Chapter 512 $230 per year Contractor License $60 per year Prorated after July 31st $40 Dog Licenses decreased by 50% after one year Spayed or neutered $7 for two years Unsprayed or Unneutered $14 for two years Duplicate tags $2 Donation Collection Bin 100 per year, per bin Garbage and Rubbish Hauler (Chapter 603 $105 plus $42 per vehicle per year Gasoline Stations (Chapter 509) Gasoline Stations (Chapter 509 $72 L7§ plus $25 per pump Kennel (Chapter 701 Residential $32 per year Commercial $61 per year 2014 Fee Schedule Page 11 of 21 Rental Dwelling License (Annual) (Chapter 1012) Single Family $60 (New Single Family Rental License) $60 plus one-time conversion fee Multi -Family $60 base fee plus $8 per unit License Fee Discounts: Certification Level C 20% fee reduction Certification Level B 33% fee reduction Certification Level A 50% fee reduction License Renewal LATE FEE Double the Annual Fee Rental Dwelling License Transfer $40 Single Family Rental Conversion Fee $375 (or $100 if owner attends applicable education -„ .... ...�.. _ _ _. ..__. "The Fundamentals tall of Rental equivalent. A $275 refund may be provided upon receipt of Certificate of attendance or completion o f 000, T� ; Class within one year of rental license application.) Pawn Shops (Chapter 516 Non -Refundable Application Fee (includes $500 cost of investigation) New Manager Investigation Fee $150 Annual License $10,000 Billable Transaction Fee $1.50 per transaction Performance Bond $10,000 Peddlers/ Transient Merchants / Solicitors Cha ter 504 Permits $61 per day $204 per month $510 per year 2014 Fee Schedule Page 12 of 21 Investi ation fee, per new peddler / solicitor $15 I.D. Card $5.00 per person Recuperation or Half Wa House Cha ter 511 Less than 10 beds $33 er year 10-49 beds $55 per year 50-99 beds $82 per year Over 100 beds $110 per year Restaurants -- Class A (occupancy loadgreater than 100 (Chapter 505 Operating 16 hours/day or less $280 Operating more than 16 hours/da $560 Restaurants -- Class B (occupancy load of 100 or less Operation 16 hours/day or less $168 Operating more than 16 hours/da $337 Therapeutic Massage License Fee/investigation Chapter 514 Enterprise License $255 Therapist License $102 Individual Investigation Fee $100 Partnership / Corporation Investigation Fee $350 Temporary Massage License $100 .: z.11 111' 117111, 111 Classifications for Rental Fee Rates: Class I: School District 621, Mounds View Scouts, Lions and 4-H, Mounds View Area Athletic Associations (w/10% roster MV residents) Class II: Mounds View Residents, Mounds View Religious Groups (w/Mounds View Address), Local Political Groups and Mounds View Non -Profits (w/Mounds View Address) Class III: Mounds View City Employees, Non -local School Districts, Non -local Non-profit Groups. Class IV: All For -Profit Groups, Non -local Religious Groups, Non-resident individuals/private agencies, businesses/vendors, and Colleges and Universities. **The City Administrator may waive the rental fees for charitable events held for the benefit of Mounds View residents upon receiving a written request outlining the nature of such event.** BANQUET AND CONFERENCE CENTER RENTALS Event Center 1/6 (Seats 50) 2013 2014 Class I Hourly Rate $14.00 $15 *Class I excludes set up services in Event Center 4 -Hour Block $44.00 $45 or additional set-up in multi-purpose rooms and gymnasium. Class If Hourly Rate $27.00 $28 4 -Hour Block $93.00 $96 Class III Hourly Rate $35.00 $36 4 -Hour Block $118.00 $122 Class IV Hourly Rate $48.00 $50 4 -Hour Block $166.00 $171 9014 Fee Schedule Page 13 of 21 -9014 Pee Schedule- facie 14 of 21 Event Center 1/3 (Seats '100) 2013 2014 Class I Hourly Rate $25.00 $26.00 4 -Hour Block $76.00 $78.00 'Class 1 excludes set up services in Event Center or additional set-up in multi-purpose rooms and Class II gymnasium. Hourly Rate $40.00 $41.00 4 -Hour Block $134.00 $138.00 Class III Hourly Rate $56.00 $58.00 4 -Hour Block $181.00 $186.00 Class IV Hourly Rate $84.00 $87.00 4 -Hour Block $279.00 $287.00 -9014 Pee Schedule- facie 14 of 21 Full Event Center (Seats 400) 20'13 2014 Class 1 'Class I excludes set up services in Event Center Hourly Rate $43.00 $44.00 or additional set-up in multi-purpose rooms and 4 -Hour Block $134.00 $138.00 gymnasium. Class II Hourly Rate $104.00 $107.00 4 -Hour Block $343.00 $353.00 Class III Hourly Rate $154.00 $159.00 4 -Hour Block $494.00 $509.00 Class IV Hourly Rate $195.00 $200.00 4 -Hour Block $614.00 $632.00 Kitchen 2013 2014 (To be used by Licensed Caterer Only) Class I Hourly Rate $20.00 $21.00 4 -Hour Block $51.00 $52.00 Class II Hourly Rate $40.00 $42.00 4 -Hour Block $134.00 $138.00 Class III Hourly Rate $55.00 $57.00 4 -Hour Block $181.00 $186.00 Class IV Hourly Rate $83.00 $85.00 4 -Hour Block $277.00 $285.00 2013 2014 Multi -Purpose Rooms A and B Class I (Seating up to 10-20) Hourly Rate $14.00 $15.00 4 -Hour Block $44.00 $45.00 For multi-purpose rooms and gymnasium rentals, if the MVCC is not otherwise open, the permit Class 11 $28.00 holder will be charged an additional $15/hour for a Hourly Rate $27.00 staff fee. 4 -Hour Block $93.00 $96.00 Class III Hourly Rate $35.00 $35.00 4 -Hour Block $118.00 $122.00 Class IV $48.00 $50.00 Hourly Rate $166.00 $171.00 4 -Hour Block 2014 lee Schedule Page 15 of 21 20'14 Fee Schedule Page 16 of 21 2013 2014 Multi -Purpose Room C and Youth Room Class I (Seating up to 30-40) Hourly Rate $47.00 $48.00 4 -Hour Block $156.00 $161.00 " Iwo -hour minimum rental Class II Hourly Rate $61.00 $63.00 4 -Hour Block $198.00 $204.00 Class III For multi-purpose rooms and gymnasium rentals, Hourly Rate $70.00 $72.00 if the MVCC is not otherwise open, the permit holder will be charged an additional $15/hour for a 4 -Hour Block $235.00 $242.00 staff fee. Class IV Hourly Rate $83.00 $85.00 4 -Hour Block $237.00 $244.00 Miscellaneous MVCC Charges Overhead Projectors $10 Lattice $50 TV & VCR $15 Cooler $50 Microphone $40 Coffee Pot & Carafes $10 Screen $50 Table Linens $3 each LCD Projector $50 Napkins $0.15 each Lobby $150 Playland $25 per hour/ Bar $20 $100 per day Gymnasium Rental Full Gym (Up to 4 hours — hourly rate) Class 1 Class II $40 $50 Class III $55 Class IV $75 Class 1 $80 Full Gym (Hourly Rate Exceeding 4 Hours) Class II $100 Class 111 $110 Class IV $150 Class 1 $20 Half Gym (Up to 4 Hours — hourly rate) Class II $40 Class III $45 Class IV $60 Half Gym (Hourly Rate Exceeding 4 hours) Class 1 $40 Class II $80 Class III $90 All tournaments are subject to a 20% Class IV $120 concessions charge (10% for non-profit organizations). A cleaning surcharge may also be applicable. 20'14 Fee Schedule Page 16 of 21 Athletic Field Rentals Fees Based Upon an Individual Event/Game/Practice. Reservations for Classes II, III, and IV will begin on March 1st. Field Reservations may be limited depending upon the number of teams and fields available. The MV YMCA & Parks Maintenance Staff will set a seasonal field use policy to determine field available, appropriate age groups, dates, and times available and fields available. For purposes of the fees below, a time block is considered four (4) hours. Tournaments: $100 per Field per Day (If Field Maintenance is required during tournaments, an additional $30 per hour with a two-hour minimum will be charged.) 1 time block free/wk Baseball & Softball Fields (Youth Only) Class I $5/add'I time block Hillview, Groveland, Oakwood, Greenfield, Class II $5 per time block Lambert, City Hall Class III $10 per time block Class IV Not applicable 1 time block free /wk Softball Fields (Adults or Youth) Class I $5/add'I time block City Hall, Silverview Class II $5 per time block Class III $15 per time block Class IV $30 per time block 1 time block free /wk Soccer Fields (Youth Only) Class I $5/add'I time block Silverview, Groveland, Oakwood Class II $5 per time block Class III $10 per time block Class IV Not Applicable Class 1 $20 per time block Lighting Fee for Softball Fields Class II $30 per time block Class III $40 per time block Class IV $40 per time block Park Building and Shelter Rentals (Rates based upon 4 hour blocks or fraction thereof. For example, a 7 hour rental equals two 4 hour blocks. Groveland, Hillview, and City Hall Parks Class I, 4 hours $25 Class 11, 4 hours $50 $100 Refundable Damage Deposit Required $75 Service Fee will be Charged to Groups of Class III, 4 hours $75 50 or more Class IV, 4 hours $100 Lambert, Random, and Silver View Parks Class I, 4 hours $25 50 Class 11, 4 hours $50 75 $100 Refundable Damage Deposit Required $75 Service Fee will be Charged to Groups of Class III, 4 hours $7-5 100 50 or more Class IV, 4 hours $150 2014 Fee Schedule Page 17 of 21 VI. PUBLIC WORKS RELATED FEES CALL -OUT RATE SCHEDULE used for all hour) -based fees in this chapter Normal Business Hours for Call -out Rates 7:00 a.m. to 3s09 3:30 p.m., Monday thru Friday Standard Call -out Rate: Specified time $50 per our specified conducted entirely within normal business hours After -Hours Call -out Rate: Specified time $100 per hour specified conducted outside normal business hours Holiday Call -out Rate: Specified time $150 per hour specified conducted on holidays RIGHT-OF-WAY MANAGEMENT FEES (Chapter 910 Registration Fee Annual $30 Excavation Permit Fees:* Hole Fee $4351150 per hole excavated Trench Fees (requires Hole Fee) $69 JZQper 100 lineal feet of trenching beyond hole Trenchless Fees (req. Hole Fee) $30 35per 100 lineal feet of utility installed using trenchless methods HDD, etc. Obstruction Permit Fees:* Obstruction Base Fee $60 70 per obstruction Lineal Obstruction Fee $10 per 100 lineal feet obstructed (in-line w/ requires Obstruction Base Fee) trafficper each week of obstruction Permit Extension Fee $2-6$30 Delay Penalty $15 per da Restoration Cost Security: Determined on a permit -by -permit basis by the PW Director Minimum security amounts: Hole Excavation (per hole) Paved Areas: $580 5 000 Turf Areas: $250 Trench Excavation (per 100 feet) Paved Areas: $2309J§ 000 Turf Areas: $500 Trenchless Excavation (per 100 feet) Paved Areas: $500 Turf Areas: $100 *Additional fees may be required for legal and consulting engineering costs incurred by the Cit 2014 Fee Schedule Page 18 of 21 MUNICIPAL WATER SYSTEM FEES (Chapter 906 Water Availability Charge (WAC): Residential $500 er unit Commercial/Industrial $1,000 per acre of developable land $1,000 minimum char e Water Rates and Surcharges: Water Usage Rate — Residential 0 to 15,000 gallons per quarter 15,001 to 30,000 gallons per quarter Over 30,000 gallons per quarter $1-J0 $2.00 per 1,000 gallons $2,09 $2.20 per 1,000 gallons $2:40 $2.63 per 1,000 gallons Water Usage Rate — Commercial 0 to 150,000 gallons per quarter 150,001 to 750,000 gal. per quarter 750,001 to 1,250,000 gal. per quarter Over 1,250,000 gallons per quarter $x.98 2.00 per 1,000 gallons $2-49 $2.20 per 1,000 gallons $2,30 $2.42 per 1,000 gallons $2-45 $2.78 per 1,000 gallons Water Quality Testing Charge $1.59 per connection quarterly Water Service Line Repair Insurance Charge $450 $6.00 per connection quarterly Meter Read Program Penalty (Failure to participate or grant access for installation or re air 100 per connection quarterly Manual Water Meter Read Fee 1 Hour at Call -Out Rate Utility Bill Late Payment Fee 10% of delinquent bill amount Utility Bill Assessment Search $10 Water Connection/Repair Permit Fees:* Service size of less than 4 -inches $50 100 no surcharge) Service size of 4 -inches or greater $75 150 no surcharge) Inspection Fees No charge during normal business hours, otherwise 1 hour at Call -out Rate per visit Re -inspection Fees 1 hour at Call -out Rate ner visit *Right -of -Way Permit needed if excavation occurs in public Rights -of -Way Water Hydrant Usage/Deposit Fees: Water Hydrant User Deposit $1,000 Water Consumption from Hydrant Current Rate per 1,000 gallons 2 to 3 -inch Hydrant Water Meter De osit $850 1 250 5/8" Water Meter Deposit $150 Hydrant Wrench Deposit $100 Hydrant Hose Deposit $100 per hose Adapters $100 deposit Miscellaneous Fees and Material Costs: Water Service Shut-off/Turn-on Fee No charge during normal business hours, otherwise 1 hour at Call -Out rate per visit Water Meter Testing Fee 1 Hour at Call -Out Rate (fee waived if meter is fault Water Testing Fee 1 Hour at Call -Out Rate Water Meter City cost plus sales tax Radio Remote Readin Device City cost plus sales tax Shut -Off and Curb Stop City cost plus sales tax and 10% for handling 2014 Fee Schedule Page 19 ®f 21 MUNICIPAL SANITARY SEWER SYSTEM FEES Cha ter 907 Sewer Service Availability Charge (SAC) $2436 2,485 per Metropolitan Council Environmental Services Sewer Rates and Surcharges: Sewer Usage Rate $255 2.15 per 1,000 gallons water sold Sewer Service Charge - Residential $25.74 $27.03 per Residential Equivalent Unit REU Connection Quarterly Sewer Service Charge — Commercial, Industrial, Public Bldgs., & Churches $632 $66.38 per REU Connection Quarter) Sewer Connection/Repair Permit Fees:* Service Conn./Repair Permit Fee $59 1100 no surcharge) Unit Charge — New Connection $459 150 per connection Inspection Fees No charge if during normal business hours, otherwise 1 hour at Call -out Rate per visit Re -inspection Fees 1 hour at Call -out Rate ner visit *Right -of -Way Permit needed if excavation occurs in public Rights -of -Way SURFACE WATER MANAGEMENT UTILITY FEES (Chapter 908 Surface Water Management Utility Charges -New Construction: R-1 $212 per lot R-2 $1,038 peracre R-3, R-4, R-0 $1,500 per acre B-1, B-2, B-3, B-4 $1,500 per acre 1-1, PUD $2,096 er acre Surface Water Management Utility Fee Rates: R-1, R-2 Single & Two Family Residential $10.00 per unit quarterly R-3 Medium Density Residential $54.67 per acre quarterly R-4, R-5, RO High Density Residential Mobile Homes and Residential Office $64.84 per acre quarterly B-1, B-2, B-3, B-4 Neighborhood Business, Limited Business, Highway Business, Regional Business $84.93 per acre quarterly 1-1 Industrial $66.30 er acre quarterly PUD Planned Unit Development $75.19 per acre quarterly CRP Conservancy, Recreation and Presentation $9.24 quarterly School/Church, Public, Private $30.52 quarterly STREET LIGHTING UTILITY FEES (Chapter 904 Residential (includes single family homes, $3.55 $3.75 per unit quarterly duplexes, four-plexes, condominium and town homes Commercial/Industrial $47.59 $18.75 per acre quarterly Institutional/Charitable $47:59 $18.76 per acre quarterly Apartments $4&48 $16.59 per acre quarterly 2014 Fee Schedule Page 20 of 21 CONSTRUCTION SITE AND LAND DISTURBANCE FEES Ord. 804/Chapter 1303 Land Disturbance Permit Fees:* 50 cubic yards or less $25 51 to 100 cubic yards $50 101 to 1000 cubic yards $50 base fee plus $20 for each 100 cubic yards or fraction thereof 1001 to 10,000 cubic yards $250 base fee plus $25 for each 1000 cubic yards or fraction thereof 10,001 to 100,000 cubic yards $500 base fee plus $100 for each 10,000 cubic yards or fraction thereof 100,001 cubic yards or more $1,500 base fee plus $250 for each 100,000 cubic yards or fraction thereof. *Additional fees may be required for legal and consulting engineering costs incurred by the Cit OTHER MISCELLANEOUS PUBLIC WORKS FEES (Actual time is rounded up to the nearest full hour) Overweight/Oversize Permit Fees $50 daily per vehicle (One time t ps) $150 weekly ehiGle p (Regularly scheduled 25 perload Emergency Utility Locates No charge if during business hours, otherwise actual time at call -out rate Call -out Charge for Contractor Negligence Actual time at Call -out Rates lack of maintenance, traffic signs, etc. Water Tower Communications Fees: Water Tower Access Fee No charge if during normal business hours, otherwise actual time at Call -out Rate per visit Plan Review and Inspection Fees Actual City, legal, and consulting engineering costs $2,000 minimum 2014 Fee Schedule Page 21 of 21 MOUNDS VIEW ®f Mounds View Staff Item No: 3 Meeting Date: November 4, 2013 Type of Business: WS Administrator Review: —E( - To, Honorable Mayor and City Council From: Desaree Crane, Assistant City Administrator Item Title/Subject: E -Cigarettes Background Chapter 512 of the Mounds View City Code does not address nor regulate Electronic Cigarettes (E -Cigarettes). The Ramsey Tobacco Coalition is requesting that cities seriously consider regulating E -Cigarettes under local tobacco retailer license ordinances and local smoke-free workplace ordinances. All businesses currently selling E -Cigarettes in Mounds View have tobacco business licenses because they sell tobacco. However, if a business were to open in Mounds View that was only selling E -Cigarettes, then the business could do this legally without obtaining a business license under the City's current Municipal Code. Discussion The Electronic Cigarette (E-Cigarett) was introduced in the U.S. Market in 2007, and offers an alternative to smoking tobacco. Most E -Cigarettes are similar in appearance to be mistaken for regular cigarettes, but a look inside and you will see the main difference. E - Cigarettes do not contain tobacco. There's a mechanism in the E -Cigarette that heats up liquid nicotine, which turns into a vapor that a person inhales and exhales. E -Cigarettes are designed to look just like regular cigarettes, but there is one major difference. You do not need a match or lighter to use them. Instead, they hold a battery, a vaporization chamber, and a cartridge filled with liquid nicotine. Puff on the device as a regular cigarette, and the device heats up the liquid and changes it to a vapor. It looks like you are smoking a regular cigarette, but there is no smell because nothing is burning. An Electronic Cigarette can contain as much nicotine as a regular cigarette or more. The amount of nicotine an Electronic Cigarette delivers depends on the content of the liquid nicotine cartridge installed in it. Customers can choose cartridges containing nicotine in a range of strengths. There are also cartridges that contain liquid without nicotine, for users who want the sensory experience of smoking without its effect. Because E -Cigarettes contain no tobacco, E -Cigarettes are not subject to U.S. tobacco laws. Attached is additional information on E -Cigarettes, to include sample language for a tobacco retailer license from the Public Health Law Center. Staff needs direction on whether the City Council would like to add language that regulates E -Cigarettes to the City Code. Res ectfully Submitted, Desaree Crane Public Health Law Centex Improving health through the power of law AT WILLIAM AIITCHRL COLLEGE OF LAW ELECTRONIC DELIVERY DEVICE SAMPLE LANGUAGE FOR LOCAL GOVERNMENT REGULATION The Public Health Law Center has developed the following sample language regarding regulation of electronic delivery devices in Minnesota under local tobacco retailer license ordinances and local smoke-free workplace ordinances. The Public Health Law Center/League of Minnesota Cities (PHLC/LMC) Model Tobacco Licensing Ordinance was used as the starting point/template for drafting purposes, such that the new sample language would amend the model ordinance. Please note that the Public Health Law Center provides information and legal technical assistance on issues related to public health, but does not provide legal advice, and does not enter into attorney-client relationships. Sample language for a tobacco retailer license ordinance: Definition section: Electronic Delivery Devices: The sample language would delete the model ordinance definition of "nicotine or lobelia delivery device" and add a broader definition of an "electronic delivery device" to include all such products no matter what their form (electronic cigarettes, cigars, pipes), as well as component parts (heating elements/cartridges), which can used independently by a person to inhale vapors. The definition would continue to exclude any product that is FDA - approved for cessation treatment or other medical purposes. Subd XX Electronic Delivery Device. "Electronic Delivery Device" shall mean any product containing or delivering nicotine lobelia or any other substance intended for human L1li1LILLV [Ell VVla vaay..r ».. �— �— device shall not include any product that has been approved or otherwise certified by the United States Food and Drug Administration for legal sales for use in tobacco cessation treatment or other medical purposes, and is being marketed and sold solely for that approved purpose. Smoking: The sample language would modify the model ordinance definition of "smoking" to specifically include inhaling and exhaling vapor from an electronic delivery device. Subd. XX, Smoking. "Smoking" shall mean inhaling or exhaling smoke from any lighted or heated cigar, cigarette, pipe, or any other lighted or heated tobacco or plant product, or inhaling or exhaling vapor fiom any electronic delivery device. Smoking shall include carrying a lighted or heated cigar, cigarette, pipe, or any other lighted or heated tobacco or plant product intended for inhalation. P"blic Heullb LaW Cutter R755unutut AvenueStinC Pnul, blinne>otn 55105 USA T,L• 651.290.7506• Eu: 651.290.7515- mwrpublichealtLlmvE ntu:org Additional retail establishment sample lan usage for the definition section: ® Amendments would delete all references to "nicotine and lobelia delivery devices" and replace with "electronic delivery devices" in the various ordinance sections as noted below: o Purpose and Intent section (delete and replace 3 references) o Definition section: In addition to the definitions already noted above, the following definitions would be amended to replace "nicotine delivery device" with "electronic delivery device" ® Compliance Checks ® Retail Establishment Self -Service Merchandising (delete and replace 2 references) ® A definition could be added: o "Tobacco Products Shop." "Tobacco Products Shop" shall mean any licensed retail establishment that derives at least 90 percent of its revenue from tobacco or tobacco products and where no person under the age of eighteen (18) is present, or permitted to enter, at any time. ® A definition could be amended: o "Vending Machine." This definition could be amended to add "electronic delivery device" to the string of products listed. I�icensin� section: This section could be amended to require tobacco retailer licensure for sales of electronic delivery devices as described below: Subd. XX. Tobacco Retailer License Required. No person shall sell or offer to sell any tobacco, tobacco products, tobacco -related devices, or electronic delivery devices without first having obtained a tobacco retailer license from the [CitA [Countyl. Subd. XX Application. An application for a license to sell tobacco, tobacco products, tobacco - related devices, or electronic delivery devices shall be made on a form provided by the [City] [County] ... (see model ordinance for complete text). Subd. XX. Smoking prohibited in tobacco retail establishments. Smoking shall not be permitted and no person shall smoke within the indoor area of any establishment with a tobacco retailer license. Smoking for the purposes of sampling tobacco, tobacco products tobacco -related devices or electronic delivery devices is prohibited. Subd. Alf. proximity to youth -oriented facilities. No license shall be granted pursuant to this section to any person for any retail sales of tobacco, tobacco products, tobacco -related devices, or electronic delivery devices within one thousand (1,000) feet of any school, playground, house of worship, or youth -oriented facility... (see model ordinance for complete text). Subd XX proximity to other tobacco retail establishments. No license shall be granted pursuant to this section to any person for any retail sales of tobacco, tobacco products, tobacco - related devices, or electronic delivery devices within two thousand (2,000) feet of any other establishment holding such a license... (see model ordinance for complete text). 2 1,b1. ,bi-i lull ts,,• Basis for denial of license section: This section would amend the grounds for denial to delete any references to "nicotine and lobelia delivery devices" and replace them with "electronic delivery devices." It would amend other references to "nicotine and lobelia devices" and replace them with "electronic delivery devices," regarding the text on prior convictions and revocation of license. Prohibitions section (Prohibited Sales): This section, which prohibits sales to minors, would be amended as described below: Subd. XX, General. It shall be a violation of this ordinance for any person to sell or offer to sell any tobacco, tobacco product, tobacco -related device, or any electronic delivery device: A. To minors (or "to any person under the age of 18 years") B. By vending machines C. By means of self-service: would delete reference to "nicotine or lobelia delivery device" and replace it with "electronic delivery device" D. ... (etc.) A provision could be added to totally prohibit vending machine sales of all products addressed in the ordinance including electronic delivery devices, as follows: (Add) Subd. XX. Vending machines. It shall be unlawful for any person licensed under this ordinance to allow the sale of tobacco tobacco products tobacco -related devices, or electronic delivery devices by means of a vending machine. Additional sample language could provide cities and counties with alternative options to further regulate electronic delivery devices, as described below: A behind the counter option: The following sample language would prohibit the sale of electronic delivery devices on open shelving (no self-service) by updating the PHLC/LMC model ordinance, deleting reference to "nicotine or lobelia delivery devices" and adding text as described below: Subd. XX. Self Service Sales. It shall be unlawful for any person licensed under this ordinance to allow the sale of tobacco, tobacco products, tobacco -related devices, or electronic delivery devices in open displays which are accessible to the public without the intervention of the licensee or the licensee's employee and whereby there is not a physical exchange of the tobacco, tobacco product, tobacco -related device, or electronic delivery device between the licensee or his or her clerk and the customer. All tobacco, tobacco products, tobacco -related devices, and electronic delivery devices shall be stored behind a counter in an area that is not accessible to consumers without the assistance of a store employee. Public Heufch Law Center Ri5 Suomtit. dvrnue-Saint Paul,b[innz>o«551C15 USA Tel: GS1290.75llti • C.u: Gi1.294'til5 - ��wr.puUtichzultlilmccsntee.orF; An option limiting sales to adult -only tobacco products shops: The following sample language would limit sales of electronic delivery devices to adult -only tobacco retail establishments that cannot be entered by minors at any time. Subd XX. [title/. It shall be unlawful for any person licensed under this ordinance to allow the sale of any electronic delivery device in any retail establishment other than a tobacco products shop that has an entrance door opening directly to the outside, derives more than 90 percent of its gloss revenue from the sale of tobacco or tobacco products and where the sale of other products is merely incidental, and where no person under the age of eighteen (18) is present, or permitted to enter, at any time. A total prohibition option: The following sample language would prohibit sales of electronic delivery devices. Subd XXtitle . It shall be unlawful for any person licensed under this ordinance to sell or offer to sell an electronic delivery device. Responsibility (of licensee) section: This provision would be amended to delete the reference to "nicotine and lobelia delivery device," replacing it with "electronic delivery device." Compliance checks section: This provision would be amended to delete all references to "nicotine and lobelia delivery device" and replace them with "electronic delivery device." Other prohibited acts section: This section would be amended to delete references to "nicotine and lobelia delivery device" and replace them with "electronic delivery device." The "illegal use" text could be amended to include "inhale" as described below. o Illegal use. It shall be a violation of this chapter for any minor to smoke, chew, sniff, inhale, or otherwise use any tobacco, tobacco product, tobacco -related device, or electronic delivery device. Exceptions and defenses section: The sample language would delete references to "nicotine and lobelia delivery device" and suggests amending this section to correctly mirror state law, allowing an exception for "tobacco" only— not any other products — as described below. o Nothing in this chapter shall prevent the providing of tobacco to a minor as part of a lawfully recognized religious, spiritual or cultural ceremony... Puhlic Health Law Center - 875 Summit avenue - Saint Paul, Nrinnesota 55105 USA TeL 651290.7506 - Fac 651.290.7515 • �rav,:pnbllchealthlaueenrerarg Sample language for a smoke-free workplace ordinance: Definitions section: Sample language would add a definition of "electronic delivery device." Sample language would amend the current definition of "smoking." (See above definitions.) Prohibition section: By amending the definition of smoking, the sample ordinance language would prohibit the use of electronic delivery devices in indoor locations where smoking is prohibited. Public Hzaleh Law Cenmr-975 Summit Avenue -Saint Paol, Dlinnuma.55105 LISA Til: 651.290.7506 • F= 651.290.7515 • www.pu6licheulthlamcartar org Tobacco Control Legal Consortium Regulatory options for Electronic Cigarettes Background Electronic cigarettes ("e -cigarettes") are often described as "electronic nicotine delivery systems" in scientific literature. These products, which often resemble cigarettes, cigars, or pipes, are designed to deliver nicotine or other substances to users in the form of a vapor. Many public health organizations support regulating e -cigarettes to reduce youth initiation to nicotine and tobacco products, protect the health of their users, and promote enforcement of smoke-fiee laws. This fact sheet provides a brief overview of e -cigarettes, their potential health risks, gaps in current federal and state regulation, and some approaches that state and local governments might consider to regulate their use, pricing, sale, and marketing. Product Description No standard definition or formulation of an e -cigarette exists: in fact, designs and ingredients vary by manufacturer.1 Generally, however, e -cigarettes consist of battery -powered heating elements and replaceable cartridges that contain nicotine or other chemicals, and an atomizer that, when heated, converts the contents of the cartridge into a vapor that users inhale. Proponents of e -cigarettes, including some in the public health community, view thein as less hazardous alternatives to combustible cigarettes. Others see thein as gateway products to tobacco use and nicotine addiction and support their restriction, or even removal, from the market. Health Risks The U.S. Food and Drug Administration (FDA) and many leading public health organizations have expressed concern about the lack of clinical studies on the potential health risks posed by e - cigarettes and the way these products are marketed without appropriate health warnings or legal age resfiictions.z In 2009, for example, the FDA warned that "laboratory analysis of electronic cigarette samples has found that they contain carcinogens and toxic chemicals such as diethylene glycol, an ingredient used in antifreeze."3 In October 2012, the World Medical Association stated that "[d]ue to the lack of rigorous chemical and animal studies, as well as clinical trials on commercially available e -cigarettes, neither their value as therapeutic aids for smoking cessation Tobacco Control Legal Consortium 875 Summit Avenue, Saint Paul, MN 55105-3076 www.publichealthlawcenter.org 651.290.7506 Regulatory Options for E -Cigarettes 12 nor their safety as cigarette replacements is established .."4 In recent years, litigation between the FDA and e -cigarette manufacturers arising from concerns about their safety and regulatory status resulted in a temporary restriction on the importation of e -cigarettes into the United States.' As a result of a 2010 ruling by the U.S. Court of Appeals for the D.C. Circuit,6 in April 2011 the FDA announced that it will regulate e -cigarettes as tobacco products under the Family Smoking Prevention and Tobacco Control Act? — the federal law granting the FDA the authority to regulate tobacco products — "unless they are marketed for therapeutic purposes, in which case they are regulated as drugs and/or devices.."s As of February 2013, however, the FDA has not yet regulated e -cigarettes as tobacco products. For that reason, it has become more of a priority for many state and local governments to consider regulatory options for electronic cigarettes. Regulatory Gaps & Options Taxation • Regulatory Gap: Many state tax laws define the term "tobacco products" in a way that excludes e -cigarettes. Although the FDA has said it will regulate electronic cigarettes as tobacco products, it is not clear whether every product marketed as an e -cigarette contains tobacco, or even nicotine derived from tobacco.9 • Regulatory Options: The Family Smoking Prevention and Tobacco Control Act (the f Tobacco Control Act) expressly P reserves the authority of state and local governments to levy taxes on tobacco products." Since e -cigarettes area different type of product, containing electronic parts and synthetically -derived ingredients, existing tobacco tax laws may not be well-suited to them." Some states have addressed this issue by clarifying the definition of "tobacco products" in their tax codes so e -cigarettes are considered tobacco products for taxation purposes. 12 Unless the FDA determines that e - cigarettes have genuine therapeutic uses, other states might consider, in the meantime, taxinge-cigarettes in a way that complements their existing cigarette and tobacco product taxes. 3 Coupons, Discounts, & Rebates • Regulatory Gap: Tobacco manufacturers use coupons and other price -related incentives to make Products such as e -cigarettes more attractive to consumers, particularly young people.' Coupons and other price discounts for electronic cigarettes are utilized in the retail environment and discounted e -cigarettes are extensively promoted online. Regulatory Options: Local and state governments could consider restricting or prohibiting the retail redemption of coupons for tobacco products, including e -cigarettes and similar nicotine delivery systems, or restricting other price -related practices in the retail environment, such as payments from e -cigarette manufacturers and distributors to retailers resulting in price discounts; tobacco retailer incentive programs; and retail value- added deals (e.g buy -one -get -one -free offers). 15 Tobacco Control Legal Consortium 875 Summit Avenue, Saint Paul, MN 551053076 www.publichealthlawcenter.org 651.290.7506 Regulatory Options for E -Cigarettes / 3 While legal challenges to such policies can be anticipated in light of the e -cigarette industry's investment in price -related marketing strategies, a federal district court has recently upheld a local law prohibiting the sale of discounted tobacco products. 16 In early 2012, Providence, Rhode Island enacted an ordinance prohibiting licensed tobacco dealers from selling discounted tobacco products through coupon redemption and multi- pack offers." Tobacco industry stakeholders challenged the law on First Amendment and federal and state preemption grounds. In December 2012, a federal district court upheld the pricing ordinance, concluding that its prohibition against certain industry price discounting practices did not violate the First Amendment, and also was not preempted by federal or state law. 18 Although this decision has been appealed, and even if upheld, would not be controlling in all jurisdictions, Providence's promising early results may help support similar state or local laws to prohibit the deeply discounted sale of emerging tobacco products like e - cigarettes. Free Samples Regulatory Gap: Under the Tobacco Control Act, tobacco manufacturers are restricted from distributing free samples of "cigarettes, smokeless tobacco or other tobacco products." 19 At present, this restriction does not apply to e -cigarettes. Although the FDA has indicated that it intends to regulate electronic cigarettes as tobacco products, the agency has yet to issue regulations asserting jurisdiction over e -cigarettes or extending the Act's prohibition on free samples to electronic cigarettes. 20 • Regulatory Options: State and local governments could prohibit the distribution of all free sarnp2les of tobacco products, including e -cigarettes and other nicotine delivery systems. I Flavoring Regulatory Gap: Another disparity exists in the way flavored e -cigarette cartridges are regulated versus flavored cigarettes. Under the Tobacco Control Act, tobacco companies are prohibited from producing cigarettes containing any characterizing flavor other than tobacco or menthol.22 This prohibition is limited to flavored cigarettes, however. E - cigarette manufacturers can continue to market e -cigarette cartridges in a variety of candy -like flavors that appeal to youth (such as bubble gum, chocolate, and mint),23 and sell them at mall kiosks, where young people often congregate, as well as online, where safeguards against youth access can be breached more easily than in face-to-face purchases. • Regulatory Options: Although the Tobacco Control Act prohibits state and local governments from establishing tobacco product standards relating to the manufacture of tobacco products, it expressly preserves the authority of state and local governments to regulate the sale and distribution of tobacco products. 24 Tobacco Control Legal Consortium 875 Summit Avenue, Saint Paul, MN 551053076 wvm.publichealthlawcentecorg 651.290.7506 Regulatory Options for E -Cigarettes / 4 In 2009, New York City enacted an ordinance prohibiting the sale of flavored non - cigarette tobacco products with a characterizing flavor other than menthol, mint, or wintergreen, except in certain "tobacco bars. ,25 Smokeless tobacco companies sued the city, arguing that the ordinance imposed manufacturing standards on their products in conflict with federal law. In 2010, the federal district court for the Southern District of New York ruled in favor of the city, denying the tobacco companies' request to delay enforcement of the law. 26 The court stated that the Tobacco Control Act gives the federal government exclusive authority over tobacco product manufacturing standards, but preserves state and local authority to regulate the sale and distribution of tobacco products. The court then found that the New York City ordinance was a sales restriction, not a product standard. In 2011, the court affirmed the reasoning of its previous decision and dismissed the complaint. 27 In early 2012, Providence, Rhode Island enacted a similar ordinance prohibiting the sale of flavored tobacco products, except in "smoking bars."28 Several tobacco industry stakeholders sued the city, arguing that the ordinance was preempted by the Tobacco Control Act because it attempted to establish a product standard, and also violated the First Amendment because it limited their ability to describe their products. Like the New York court, the federal district court in Rhode Island concluded that the ordinance was a sales restriction, not a product standard, and thus was not preempted under the Tobacco Control Act 29 The court also concluded that Providence's ordinance did not limit the plaintiffs' First Amendment rights, finding that it was simply an economic regulation on the sale of a particular product. 30 Although both of these decisions are on appeal and, even if upheld, would not be precedential in all jurisdictions, their promising initial results may help support similar state or local laws to prohibit or restrict the sale of flavored tobacco products, including flavored e -cigarettes Youth Access Regulatory Gap: Under federal law, retailers cannot "sell cigarettes or smokeless tobacco to any person younger than eighteen years of age.i31 As explained above, the FDA has yet to assert jurisdiction over electronic cigarettes and extend restrictions like this to e -cigarettes. Also, many state and local youth access laws do not include e- cigarettes.32 • Regulatory Options: State and local governments could consider passing stronger, more comprehensive youth access laws to prohibit the sale of e -cigarettes to minors, require these products to be kept behind the counter, allow them to be sold only in places adults are permitted to enter, or raise the minimum legal age to purchase them. 33 Use Restrictions • Regulatory Gap: Many smoke-free laws define the act of "smoking" as inhaling or carrying a lighted tobacco or plant product intended for inhalation. E -cigarettes, which Tobacco Control Legal Consortium 875 Summit Avenue, Saint Paul, MN 55105-3076 www.publichealthlawcenter.org 651.290.7506 Regulatory Options for E -Cigarettes / 5 are not burned, but "vaped," are generally not covered under these laws. Using e - cigarettes in public may lead conventional smokers to assume that smoking is permitted in such locations and nonsmokers to believe that a smoke-free law is being violated. Because of this, several health organizations recommend that the use of electronic cigarettes be prohibited in public places and workplaces. 34 • Regulatory Options: Local and state governments could include e -cigarettes hi their smoke- and tobacco -free restrictions by revising definitions of "smoking" or "tobacco products" to expressly cover e -cigarettes and other electronic nicotine delivery systems. Point -of -Sale Warnings, Marketing Restrictions, & Broad Sales Prohibitions Regulatory Gap: The Federal Cigarette Labeling and Advertising Act 35 limits the authority of state and local governments to regulate the advertising and promotion of cigarettes; however, no federal statute limits the authority of local or state governments to regulate the advertising and promotion of non -cigarette tobacco products. In addition, as discussed above, the Tobacco Control Act expressly preserves state and local government authority to regulate the sale of tobacco products. Therefore, state and local governments are able to warn consumers of the dangers of using electronic cigarettes, regulate the advertising or promotion of e -cigarettes, and regulate the sale of e -cigarettes without risking federal preemption concerns. Regulatory Options: To determine the most effective options for regulating the sale and marketing of e -cigarettes or for warning consumers about the use of these products, state and local governments need to analyze their jurisdiction -specific needs, priorities, and goals. Possible policy options include posting health warnings at the point-of-sale, 36 imposing marketing restrictions, and prohibiting the sale of all electronic cigarettes. 37 Although federal statutes should not pose a barrier for state and local policies restricting the sale and marketing of e -cigarettes, such laws will most certainly be challenged on the basis that they violate state or federal constitutional provisions related to free speech or interstate commerce. 38 Although it is important to work with an attorney when pursuing any policy options, the legal issues surrounding the First Amendment are complicated, and jurisdictions must consult with legal counsel before pursuing these types of policies. Contact Us Please feel free to contact the Tobacco Control Legal Consortium at (651) 290-7506 or publichealthlaw@wmitchell.edu with any questions about the information included in this fact sheet or to discuss local concerns you may have about implementing these policy options. The Tobacco Control Legal Consortium provides information and technical assistance on issues related to tobacco and public health. The Consortium does notprovide legal representation or advice. This document should not be considered legal advice or a substitute for obtaining legal advice f om an attorney who can represent you. We recommend that you consult with local legal counsel before attempting to implement any of these measures. Tobacco Control Legal Consortium 875 Summit Avenue, Saint Paul, MN 551053076 wwm.publichealthlawcenter.org 651.290.7506 Regulatory Options for E -Cigarettes / 6 Last Updated: February 2013 Notes 1 World Med. Ass'n, Statement on Electronic Cigarettes and Other Electronic Nicotine Delivery Systems (Oct. 2012), available athHt -//www wma netten/30publications/IOoolicies/e19/. 2 U.S. Food and & Drug Admin., Electronic Cigarettes, http-//www fda i4ov/newsevents/l)ublichealthfocus/ueml72906.litin (last visited Feb. 8, 2013). s U.S. Food & Drug Admin., Summary of Results: Laboratory Analysis of Electronic Cigarettes Conducted by the FDA, littpi//www.fda.2ov/newsevents/i)ublichealthfocus/ucml73146.htm (last visited Feb. 8, 2013). 4 See World Med. Ass'n, supra note 1. ' Sottera v. Food & Drug Admin., 627 F.3d 891, 893 (D.C. Cir. 2010). 6 Sottera, 627 Fad at 893 (holding that e -cigarettes and other nicotine -containing products are not drugs or devices unless they are marketed for therapeutic purposes, but that other nicotine -containing products can be regulated as "tobacco products" under the Federal Food, Drug, and Cosmetic Act). ' Family Smoking Prevention and Tobacco Control Act, Pub. L. No. 111-31, 123 Stat. 1776 (2009) (codified as amended in relevant part at 21 U.S.C. §§ 301, 321, 387), available at www.izovtrack.us/conuess/bills/I I I/hrl256/text. s See Letter from Lawrence Deyton, Dep't Director, Food & Drug Admin., to Stakeholders, Regulation of E -Cigarettes and Other Tobacco Products (Apr. 25, 2011), available at hLtpi//www.fda.%zov/newseventsPoublichealtbfocus/ucm2523 60.htni. s See Michael Freiberg, Options for State and Local Governments to Regulate Non -Cigarette Tobacco Products, 21 ANNALS OF HEALTH LAW 407, 412 (2012), available at 10 21 U.S.C. § 387p(a)(1). 11 See Freiberg, supra note 9, at 421. 12 See, e.g., 2010 Minn. Laws ch. 305 § 2, available at https•//www revisor mn eov/data/revisor/law/2010/0/2010-305.pdf. " See Freiberg, supra note 9, at 418, 421. 14 U.S. Dep't of Health & Human Servs., Preventing Tobacco Use Among Youth and Young Adults: A Report of the Surgeon General, 522-30 (2012), available at http'//www surgeongeneral eov/library/reports/preventing-vouth-tobacco-use/full-report.pdf. "See, e.g., Marlo Miura, Tobacco Control Legal Consortium, Regulating Tobacco Product Pricing. Guidelines for State and Local Governments (2010), available at http //publichealthlawcenter ore/sites/defaulttfiles/resources/tcic-fs-pricing-2010.pdf; Tobacco Control Legal Consortium, Price -Related Promotions for Tobacco Products: An Introduction to Key Terms and Concepts (2011), available athttp-//publichealthlawcenter ora/sites/default/files/resources/tcic-fs- pricerelatedprromotions-2011 0.pdf. 16 Nat'l Ass'n of Tobacco Outlets, Inc. v. City of Providence, No. 12-96—ML, 2012 WL 6128707 (D.R.I. Dec. 12, 2012). "PROVIDENCE, R.I. CODE §§ 14-300,14-303. Tobacco Control Legal Consortium 875 Summit Avenue, Saint Paul, MN 55105-3076 www.publichealthlawcenler.org 651.290.7506 Regulatory Options for E -Cigarettes / 7 18 Nat'l Ass'n of Tobacco Outlets, Inc. v. City of Providence, 2012 WL 6128707 at *5-7, 11. "21 C.F.R. § 1140.16(d)(1). 20 The Tobacco Control Act irmnediately gave the FDA the authority to regulate cigarettes, roll year own, and smokeless tobacco and "any other tobacco products that the Secretary by regulation deems to be subject to" the Act. The Act includes a broad definition of tobacco products that would appear to include e -cigarettes and any other tobacco product that is currently on the market. However, in order to regulate those products, the FDA has to issue a regulation that deems them subject to the Act. After indicating in 2011 that it intended to issue the regulations later that year, the FDA did not issue the regulations in 2011 or 2012. In January 2013, the U.S. Department of Health and Hanan Services (HHS) published its Unified Regulatory Agenda, which indicates that the FDA intends to issue a notice of proposed rulemaking regarding its authority to deem other tobacco products subject to its jurisdiction in April 2013. U.S. Dep't of Health & Human Services, Regulatory Agenda, 78 Fed. Reg. 1574, 1579 (Jan. 8, 2013), available athtto://www.no.gov/fdsys/Xkg/FR-2013-01-08/Xdf/2012-3167I.Pdf. Ir See, e.g., Tobacco Control Legal Consortium, Tobacco Coupon Regulations and Sampling Restrictions — Tips and Tools (2011), available at htt ,//oublichealthlawcenter oro/sites/default/files/resources/tcic- guide tobcouoonreesandsarnoline-2011 odf. 21 See U.S. Food & Drug Admin., Flavored Tobacco, http•//www fda eov/TobaccoProducts/ProtectinpKidsfrmnTobacco/FlavoredTobacco/default.htm (last visited Feb. 8, 2013) (containing links to resources related to 2009 law prohibiting the manufacture and sale of cigarettes containing certain characterizing flavors). " Minutes, U.S. Food & Drug Admin., Ctr. for Tobacco Products, Tobacco Products Scientific Advisory Committee Meeting, Dissolvable Tobacco Products Session, Testimony of Curtis Wright (July 21, 2011), available at http //www fda.gov/downloads/AdvisorvCommittees/CommitteesMeetinaMaterials/TobaccoProductsScie ntificAdvisorvCommittee/tJCM270282.1)df. 24 21 U.S.C. § 387p(a)(1). See Tobacco Control Legal Consortium, Federal Regulation of Tobacco: Impact on State and Local Authority (2009), available at http•//www publichealthlawcenter orggJsites/default/files/fda-l.pdf. 2s N.Y.C. CODE § 17-713, 715 (prohibiting the sale of smokeless tobacco products that have as a component part tastes or aromas relating to "any fruit, chocolate, vanilla, honey, candy, cocoa, dessert, alcoholic beverage, herb or spice."). " U.S. Smokeless Tobacco Mfg. Co. v. City of New York, 703 F. Supp. 2d 329, 344-45 (S.D.N.Y. 2010) (denying plaintiffs' motion for a preliminary injunction, finding them unlikely to prevail on the merits of their federal preemption claim; concluding that the Tobacco Control Act gives the federal government the exclusive authority to regulate the manufacture of tobacco products, while reserving to the states the power to regulate the sale and distribution of tobacco products). 2' U.S. Smokeless Tobacco Mfg. Co. v. City of New York, No. 09 Civ. 10511, 2011 WL 5569431 (S.D.N.Y. Nov. 15, 2011) (affirming reasoning of preliminary injunction order that the ordinance is an allowable sales restriction, denying plaintiffs' motion for summary judgment, granting defendant's cross-motion for summary judgment, and dismissing the complaint). 21 PROVIDENCE, R.I. CODE §§ 14-308, 14-309, and 14-310. 29 Nat'l Ass'n of Tobacco Outlets, Inc. v. City of Providence, No. 12-96—ML, 2012 WL 6128707 at * 12- 13 (D.R.I. Dec. 12, 2012). 30 Id. at *8. Tobacco Control Legal Consortium 875 Summit Avenue, Saint Paul, MN 55105-3076 vAm.publicheallhlawcenter.org 651.290.7506 Regulatory Options for E -Cigarettes / 8 3121 C.F.R. § 1140.14(a). 32 Freiberg, supra note 9, at 434. " See Tobacco Control Legal Consortium, Regulating E -Cigarettes — Tips and Tools (2011) (including select U.S. legislation and policies regulating e -cigarettes), available at http-//nublichealthlawcenter ore/sites/default/files/resources/tcic-guide-reeecias-201 Lodf; Tobacco Control Legal Consortium, Raising the Minimune Legal Sale Age for Tobacco and Related Products (2012), available at http://publichealthlaweenter ort/sites/default/files/resources/tcic-guide- minimumlegal-saleage-2012 0.12df. 34 See, e.g., Americans for Nonsmokers' Rights, Model Ordinance Prohibiting Sneaking in All Workplaces and Public Places 7 (2011), available at http7//www.no-smoke.org/pdf/inodelordinance.pdf. " 15 U.S.C. § 1331 et seq. 36 See 23-34 9401 St. Grocery Corp. v. New York City Bd. of Health, 685 F.3d 174,193-85 (2d Cir. 2012) (affirming a district court decision ruling that New York City may not require cigarette retailers to post graphic health warnings next to cash registers or adjacent to cigarette displays, on the grounds that the Federal Cigarette Labeling and Advertising Act prevents state or local governments from adopting laws that affect the content of tobacco retailers' and manufacturers' promotional efforts). The challenged warning signs depicted the health impacts of smoking and contained the message "quit smoking today." It should be noted that if a jurisdiction adopted graphic point-of-sale warning requirements applying to non -cigarette tobacco products such as electronic cigarettes, the FCLAA would not apply. However, the law would almost certainly be challenged on First Amendment grounds. " Freiberg, supra note 9, at 438. 38 For additional information, see the Tobacco Control Legal Consortium's publications on First Amendment and Commerce Clause issues in the regulation of tobacco products, available at hM,//nublichealthlawcenter ore/tonics/special-collections/federal-regulation-tobacco-collection. Tobacco Control Legal Consortium 875 Summit Avenue, Saint Paul, MN 55105-3076 wwnv.publicbealtblawcenler.org 651.290.7506 one example of a rechargeable e -cigarette model "blu" is a brand of electronic cigarettes manufactured by Lorillard, the company that makes Newport cigarettes. It is purposefully designed to look different than a cigarette for use by consumers in places with smoke-free policies. This disposable electronic cigarette produced by NSOY costs about $7. NIOY is the number one selling brand of electronic cigarettes. WHAT IS AN ELECTRONIC CIGARETTE? Electronic cigarettes, also called e -cigarettes, are battery operated nicotine vaporizers that are produced primarily in China.' E -cigarettes often look like a traditional cigarette but do not produce smoke. The use of e -cigarettes is referred to as "vaping" rather than "smoking." E -cigarette users purchase cartridges filled with liquid nicotine and other substances, attach the cartridge onto the e -cigarette battery, and breathe in nicotine vapor produced by a small heating element. The cartridges are sold in many flavors such as cherry, bubblegum, vanilla, and fruit punch, malting them appealing to youth.z Disposable e -cigarettes sell for about $5 and rechargeable e -cigarettes cost up to $120. E -cigarettes are often advertised as a safer alternative to tobacco cigarettes; however, the potential health risks associated with these products is not known. Liquid nicotine found in e -cigarettes is derived from tobacco; however, most of the devices do not contain any tobacco. Similar to tobacco cigarettes, heavy metals, carcinogens, silicate, and nanoparticles (which can go deep into the lungs) have been found in e -cigarette vapor? ARE ELECTRONIC CIGARETTES REGULATED? The production and manufacturing of e -cigarettes is poorly regulated as The Food and Drug Administration (FDA) has noted that "quality control processes used to manufacture these products are inconsistent or nonexistent" For example, three different e -cigarette cartridges with the same label were tested and each cartridge released a substantially different amount of nicotine with each puff.6 WHATARE THE HEALTH EFFECTS OF ELECTRONIC CIGARETTE USE? Because these products are so new, little is known about their long term health effects. There is a significant amount of research showing the harmful effects of nicotine: a highly addictive stimulant that increases blood pressure and heart rate.3 E -cigarettes are designed to deliver high amounts of nicotine to the user. Often, e -cigarettes deliver more than two times the amount of nicotine approved by the FDA for smoking cessation aids.' Many of the ingredients found in e -cigarettes are known to be dangerous to human health. These ingredients can cause: lung and cardiac inflammation, cancer, and cell damage. a.vtu nourn eco r ai;1' .7,'2 a X10 cto®neTTccvauve RtLTYOUW MIICN. Many e -cigarettes are advertised as a smoke- free alternative, especially as a New Year's resolution. Source: Rolling Stone Qanuary 17, 2013). Re- trieved from wzm.trinketsanduash.org Source: w .blucigs.com Retrieved from aww.trinketsandtrash.org WHO USES ELECTRONIC CIGARETTES? As a result of widespread availability, sales of e -cigarettes are increasing rapidly. Some predict that electronic cigarette sales could overtake traditional cigarette sales in the next decade. Electronic cigarettes are popular among people who are looking for an alternative to traditional cigarettes. These people are often looking for a "safer" alternative and the ability to smoke in places where cigarette smoking is prohibited. WHAT CAN I DO TO HELP PREVENTYOUTH ELECTRONIC CIGARETTE USE? It is critical that local municipalities regulate e -cigarettes. All e - cigarette vendors should be licensed and subject to the same provisions as traditional tobacco retailers to ensure youth do not have access to these products. Minnesota state law currently regulates the sale of e -cigarettes by prohibiting sale to minors. Local ordinances should be updated at the county and city level to ensure that e -cigarettes are not sold to those under 18 years of age. Sources: 1. Dooley, E. (2009). E -cigarettes: Not quite healthy. Enpiranmeatal Health Pertrpectiver, 117(9),A392. 2. Kuehn, B. M. (2009). FDA: Electronic cigarettes may be risky. JAMA 302(9), 937. 3. Williams, M., Villarreal A., Bozhilov K., Lin S., & Talbot, P. (2013). Metal and silicate particles including nanoparticles are present in electronic cigarette cutomizer fluid and aerosol. PLoS ONE 8(3), e57987. 4. Wollscheid, K. A. & Kremzoer, M. E. (2009). Electronic cigarettes: Safety concerns and regulatory issues. American joarnal of Heath-Sjatem Pharnmcy, 66(19), 1740. 5. Williams, M. & Talbot, P. (2011). Variability among electronic cigarettes in the pressure drop, airflow rate, and aerosol production. Nicotine & Tobatta Research 13 (12),1276-1283. 6. FDA Only 2009). Summary of results: Laboratory analysis of electronic cigarettes conducted by FDA. Available fromlittp://vrww.fda.gov/NewsEvents/ PubhclleahhFocus/ucm173146.htm 7. Trehy, M. L., Ye, W., lladvrigey M. E., Moore, T. W., Allgire, J. F., Woodruff, J. T., Ahadi, S. S., Black, J. C., & Westenbergeq B.J. (2011). Analysis of electronic cigarette cartridges, refill solutions, and smoke for nicotine and nicotine related impurities. Journal of-Uquid Cbromatgmtby & Related Tecbnologler, 34(14),1442-1458. This publication has been made possible by funding from the Minnesota Department of Health's Tobacco -free Communities grant program. Ramsey Tobacco Coalition is a program of the Association for Nonsmokers -Minnesota. 2395UuiversiNAt�cnueW Suite310 St.P1gl 1`?i=55114.65UA6.300 6/25/2013 Regulating E -Cigarettes The Tobacco Control Legal Consortium has created this series of legal technical assistance guides to serve as a starting point for organizations interested in implementing certain tobacco control measures. We encourage you to consult with local legal counsel before attempting to implement these measures.' For more details about these policy considerations, please contact the Consortium. Electronic Cigarettes (E -Cigarettes) Electronic nicotine delivery systems ("electronic cigarettes" or "e -cigarettes") are products often shaped like cigarettes, cigars or pipes that are designed to deliver nicotine or other substances to a user in the form of a vapor. Typically, e -cigarettes consist of battery -powered heating elements and replaceable cartridges that contain nicotine or other chemicals, and an atomizer that, when heated, converts the contents of the cartridge into a vapor that a user inhales. First marketed in China in 2004, these products are now available around the world, thanks largely to Internet sales and aggressive marketing claims promoting the safety, convenience and cost-effectiveness of e -cigarettes over conventional cigarettes. E -cigarette manufacturers also claim that because their products are non-combustible and emit a vapor rather than secondhand smoke they can be legally used where traditional tobacco products are banned. While proponents of e -cigarettes, arg ettes, including some in the public health community, view them as less hazardous alternatives to combustible cigarettes, others see them as gateway products to tobacco abuse and nicotine addiction and support their restriction or even removal fi•om the market. Those in favor of regulating the product point out that e -cigarette cartridges are available in a variety of flavors that appeal to youth (such as bubblegurn, chocolate and mint), and can be purchased at mall kiosks, where young people often congregate, as well as online, where safeguards against youth access can be breached more easily than in face-to-face purchases. Public health authorities generally agree on the need for further scientific study to confirm the products' unproven safety claims. The Food and Drug Administration (FDA) and many leading public health organizations have expressed concern about the ToOacco control Legal Consortium 875 Sunlnn[Avenue, Saint Paul, VIN 55105-3076 wv 4ciconline.org 651.290.7506 Regulating E -Cigarettes / 2 lack of clinical studies on the potential health risks posed by c, -cigarettes and the way these products are marketed without appropriate health warnings or legal age restrictions. In recent years, litigation between the FDA and e -cigarette manufacturers stemming from concerns about the safety and regulatory status of these products resulted in a temporary ban on the import of e -cigarettes into the United States. Today, as discussed below, federal policy regarding the regulation of e -cigarettes is in transition. This brief guide provides pointers for communities and policy makers to consider when drafting or implementing laws or policies that regulate e -cigarettes. Policy Options Public health organizations support regulating e -cigarettes for several reasons, such as: reducing youth initiation to nicotine and tobacco products, protecting the health of all users, and promoting the enforcement of smoke-free laws. There are several policy options that can advance these public health goals. Regulating Sale. As discussed below, the FDA is developing a strategy to regulate e - cigarettes containing tobacco as tobacco products. State and local governments are not prevented from regulating the sale of tobacco products. For example, a government could prohibit the sale of such products anywhere within its jurisdiction, prohibit the sale of such products to minors, require these products to be kept behind the counter, or allow these products to be sold only in places adults are permitted to enter. Regulating Marketing. State and local governments have an interest in protecting the public from false or misleading claims about any product. Prohibiting e -cigarette manufacturers and retailers fi-om making unsubstantiated marketing claims about the safety and benefits of these products is in the best interest of public health. Every state and some local governments have laws in place to control misleading product claims, and these laws may be enforceable against some e -cigarette marketing efforts. For instance, state consumer protection and unfair trade practices statutes typically prohibit false or misleading advertising about products sold within the state. State and local governments may also be able to consider options designed to limit the targeted marketing of e - cigarettes to minors. While commercial speech concerns can be a part of such a policy consideration,s thought should be given to how e -cigarettes are promoted in a community and whether restrictions can be placed on those efforts. Notably, a law prohibiting the sale of e -cigarettes would also be likely to substantially reduce the marketing of these products. Regulating Use. Proponents of e -cigarettes claim these products are safer to use than traditional tobacco products, and do not expose bystanders to the risk of secondhand smoke.6 Yet concern about the lack of scientific data on e -cigarettes has caused a growing number of state and local governments to prohibit their use in various public places—often under existing or new smoke-free laws. The goal of such legislation is generally to minimize the use of products that pose unknown health risks — particularly unregulated products that deliver powerful drugs, such as nicotine, to the user. Another legislative goal is to prevent confusion in the enforcement of smoke-free laws caused by 'Tobacco Cords•ol Legnl Consorcluln 875 SuinmitAveme. SnhtPaul, MN 55105-3076 W0Ak.lCIC0nline.01'g 651.290.7506 Regulating E -Cigarettes / 3 the perception that e -cigarette smokers (also known as "vapers") are actually smoking conventional cigarettes. Omitting e -cigarettes from smoke-free laws could cause conventional smokers to assume that smoking is permitted and nonsmokers might become needlessly concerned at what they see as a violation of a smoke-free law. Policy Elements Regardless of the type of policy effort pursued to regulate e -cigarettes, each policy shares a few common elements, such as: Clear definitions and concise language: To avoid confusion about what constitutes an e -cigarette, make sure your definitions are explicit about what they cover and broad enough to anticipate future product innovations. This eliminates ambiguity if new products are released that are similar to e -cigarettes but do not fall under a narrow definition. Robust enforcement options: Enforcing restrictions on the sale, marketing and use of e -cigarettes can be challenging unless clear procedures are established, including a reasonable penalty and appeal process. Effective enforcement of these policies often includes coordination among different enforcement agencies and consistent procedures throughout a community. Well-planned implementation process: Establish a process for publicizing the policy and educating the community, as well as procedures for receiving, tracking and following up on complaints. Make sure you set a realistic date for the policy to take effect. Policy Challenges One of the most controversial issues affecting the regulation of electronic cigarettes has been debate over their status as either drug delivery (e.g., smoking cessation) devices or tobacco products. The regulatory status of e -cigarettes was at the heart of recent litigation between the FDA and e -cigarette manufacturers, including Sottera Inc. v. Food & Drug Administration.7 Under the Family Smoking Prevention and Tobacco Control Act (Tobacco Control Act), the FDA has authority to regulate "any product made or derived from tobacco that is intended for human consumption" The brands of e - cigarettes being marketed most widely today do not contain tobacco, but most often do contain nicotine extracted from tobaccos Between 2008 and 2010, the FDA determined that certain e -cigarettes were unapproved drug/device combination products, comparable to nicotine patches, which the agency has regulated for years under the drug and device provisions of the federal Food Drug and Cosmetic Act (FDCA). In December 2010, the U.S. Court of Appeals for the D.C. Circuit issued a decision in Sottera, stating that e -cigarettes and other products "made or derived from tobacco' are not "drugs," "devices," or combination products, unless they are marketed for therapeutic purposes — and that the FDA can regulate them as tobacco products under the Tobacco Tol3acco Control Legal consorilu n 875 SLJ[na tAVenUe, Saint Paul, tVlq 55105-3076 vnw.tciconllne.org 651.290.7506 Regulating E -Cigarettes / 4 Control Act. On April 25, 2011, the FDA announced it will not appeal the court's decision and that it is now developing a strategy to regulate e -cigarettes containing tobacco as tobacco products under the Tobacco Control Act. For the latest federal information about regulating e -cigarettes, visit the FDA's website at littpi//www.fda.gov. As with any tobacco product, state and local policies restricting the sale and marketing of e -cigarettes may be subject to legal challenges, such as Commercial Speech or Commerce Clause claims.9 Policies regulating the use of e -cigarettes may also be challenged in court, particularly since e -cigarette restrictions are often included in smoke- free laws, requiring drafters to redefine "smoking" to include the use of not only cigarettes, cigars, pipes and other traditional tobacco products, but also e -cigarettes. Communities may want to consider a comprehensive approach that targets similarly addictive gateway products on the market now or in the future (such as nicotine water or lobelia e -cigarettes). Select Legislation and Policies Below are a few examples of tobacco control policies that include provisions regulating the sale, marketing or use of e -cigarettes. i0 Many of these provisions are included in smoke-free laws. Local and state governments might also want to consider other legislative avenues or regulatory options, such as pricing strategies. If you consider adapting any language from the following policies, take care to ensue the provision in question is practical and legal in your jurisdiction. Please note that the Tobacco Control Legal Consortium does not endorse or recommend any of the following policies. These examples are included simply to illustrate how various jurisdictions have defined and regulated these products. Local /State Policy Name Text of Policy Minnesota Tobacco Regulates sale of e -cigarettes and imposes criminal Modernization penalties for the sale of nicotine or lobelia delivery and Compliance products, including e -cigarettes, to minors. Act of 2010, Minn Stat. & "Whoever sells to a person under the age of 18 years a 609.685 product containing or delivering nicotine or lobelia intended for human consumption, or any part of such a product, that is not tobacco as defined by section 609.685, is guilty of a misdemeanor for the first violation. Whoever violates this subdivision a subsequent time within five years of a previous conviction under this subdivision is guilty of a gross misdemeanor." (Definition: A nicotine delivery device is "a product containing or delivering nicotine or lobelia intended for human consumption, or any part of such a product, that is not tobacco as defined by section 609.685." Tobacco control Legal cr nsordum 875 SummitAvenue, Saint Paul, MP! 55105-3076 vivivitciconline.org 651.290.7506 Regulating E -Cigarettes / 5 New Hampshire An Act Prohibits sale of e -cigarettes and liquid nicotine to minors, Prohibiting, the distribution of free samples of such products in a public Sale of E- place, and use of such products on grounds of any public Cigarettes to educational facility. Minors, Chan. 0113 Definition: "E -cigarette means any electronic smoking device composed of a mouthpiece, a heating element, a battery, and electronic circuits that provides a vapor of pure nicotine mixed with propylene glycol to the user as the user simulates smoking. This term shall include such devices whether they are manufactured as e -cigarettes, e -cigars, ore -pipes, or under any other product name." New Jersey New Jersey Prohibits the smoking of tobacco products and the use of Smoke -Free Air electronic smoking devices in all enclosed indoor places of Act, P. L. 2009• public access and workplaces. Chap 182 Definition: "Electronic smoking device means an electronic device that can be used to deliver nicotine or other substances to the person inhaling from the device, including, but not limited to, an electronic cigarette, cigar, cigarillo, or pipe." Utah Utah Code § 76- Regulates sale, gift, or distribution of e -cigarettes by 10-101, 104, manufacturer, wholesaler, or retailer. 105,111 Definition: "Electronic cigarette means any device, other than a cigarette or cigar, intended to deliver vapor containing nicotine into a person's respiratory system." Suffolk County, A Local Law Prohibits the sale of e -cigarettes to minors and "the use of New York Banning the e -cigarettes and like products in public places where Sale of E- traditional forms of smoking are already allowed." Cigarettes to Persons Under Definition: "E -cigarette shall mean any electronic device the Age of 19, composed of a mouthpiece, heating element, battery and Local Law No. electronic circuits that provides a vapor of liquid nicotine 29-2009 and/or other substances mixed with propylene glycol to the user as he or she simulates smoking. This term shall include such devices whether they are manufactured as e - cigarettes, e -cigars, e -pipes or under any other product name." Organizations Americans for Model Findings: "Unregulated high-tech smoking devices, Nonsmokers' Ordinance commonly referred to as electronic cigarettes, or `e- Ibights _ cigarettes,' closely resemble and purposefully mimic the 'I'obacro Control Legal C01-109rdLIn1 875 SummilAvenue, Saint Paul, W\155105-3076 w% nr:kdconline.org 651.2907506 Regulating B -Cigarettes / 6 Prohibiting act of smoking by having users inhale vaporized liquid Smokingin n All nicotine created by heat through an electronic ignition Workplaces and system. After testing a number of e -cigarettes from two leading manufacturers, the Food and Drug Administration Public Places (FDA) determined that various samples tested contained not only nicotine but also detectable levels of known carcinogens and toxic chemicals, including tobacco - specific nitrosamines and diethylene glycol, a toxic chemical used in antifreeze. The FDA's testing also suggested that "quality control processes used to manufacture these products are inconsistent or non- existent." ("Summary of results: laboratory analysis of electronic cigarettes conducted by FDA," Food and Drug Administration (FDA), July 22, 2009; littp•//www.fda.gov/NewsEvents/PublicHealthFocus/ucmI 73146.htm .) E -cigarettes produce a vapor of undetermined and potentially harmful substances, which may appear similar to the smoke emitted by traditional tobacco products. Their use in workplaces and public places where smoking of traditional tobacco products is prohibited creates concern and confusion and leads to difficulties in enforcing the smoking prohibitions." Definition: "E -cigarette means any electronic oral device, such as one composed of a heating element, battery, and/or electronic circuit, which provides a vapor of nicotine or any other substances, and the use or inhalation of which simulates smoking. The term shall include any such device, whether manufactured, distributed, marketed, or sold as an e -cigarette, e -cigar, e -pipe, or under any other product name or descriptor." Other Helpful Resources The Americans for Nonsmokers' Rights website contains the latest news, reports and related resources on e-ci are ettes. For guidance and regulatory information about e - cigarettes, check the Food and Drug Administration's website on e -cigarettes. For a different perspective on e -cigarettes, visit the website of the American Association of Public Health Physicians. Contact Us Please feel free to contact the Tobacco Control Legal Consortium with any questions about the information included in this guide or to discuss local concerns you may have about implementing such a policy regulating e -cigarettes. I The information contained in this document is not intended to constitute or replace legal advice. Tobacco Conirol Legal Consorduro 875 SummitAvenue, Stint Paul, MN 55105-3076 wvsdelconline.org 651.290.7508 Regulating E -Cigarettes / 7 ' American Heart Assoc. or. al., Policy Guidance Document Regarding E -Cigarettes (April 9, 20 10) (this document was released prior to the final decision in Soterra Inc. v. Food & Drug Admin., but contains useful information about e -cigarettes from major public health organizations). ' The Food and Drug Administration took enforcement action against several e -cigarette manufacturers for violations of the Federal Food, Drug, and Cosmetic Act (FDCA), including unsubstantiated claims and poor manufacturing practices. For information about the litigation between the FDA and e -cigarette manufacturers, as well as legal documents related to the enforcement actions taken by the FDA regarding these products, visit the FDA's e -cigarette website at http•//www fda gov/NewsEvents/PublicHealthFocus/ucml72906.1rtm. Family Smoking Prevention and Tobacco Control Act, Pub. L. No. 111-31, 123 Stat. 1776 (codified, in relevant part, at 15 U.S.C.A. §§ 1333-34 and 21 U.S.C.A. § 301 et seq. (20 10)) (preserving local and state authority to regulate the sale of tobacco products). s See Tobacco Control Legal Consortium, Restricting Tobacco Advertising—Tips and Tools (2011). 6 Proponents claim that e -cigarettes emit an odorless vapor made of water and harmless chemicals rather than the hazardous secondhand smoke of combustible cigarettes. ' Sottera, Inc. v. Food & Drug Admin., 627 F.3d 891 (D.C. Cir. 2010). s Generally, the nicotine in electronic cigarettes is "derived from natural tobacco plants." However, it is not entirely clear whether that is true of all electronic cigarettes currently on the market, or whether it will be true of future products. Furthermore, not all electronic cigarettes contain nicotine; some contain comparable chemicals such as lobelia. Letter from Michael M. Levy, Jr., Director, Division of New Drugs and Labeling Compliance, Food & Drug Administration, to William P. Bartkowski, President, Ruyan American, Inc. (Sept. 8, 2010), available at lo://www fda gov/ICECl/EiiforcementActions/WarningLetters/Ucm22518l.htm. 9 See Tobacco Control Legal Consortium publications on Commercial Speech and Commerce Clause issues in the regulation of tobacco products on its website section, Federal Regulation of Tobacco Products, at h—q1/publichealthlawcenter org/topics/special-collections/federal- regulation-tobacco-col lection. 10 Several other states are considering legislation to regulate the sale and use of e -cigarettes and a growing number of countries, such as Australia, Canada, Brazil, Israel, Mexico and Hong Kong, have imposed marketing restrictions on these products. Also, back in 2008, the World Health Organization announced that it does not consider e -cigarettes an effective nicotine -replacement therapy and that these products need to undergo toxicity analyses and "operate within the proper regulatory framework." Updated: May 2011 Tobacco Control Legal Ccnsortiun 875 Summit Avenue, Seint Paul, MN 55105-3076 vnvw.td00nline.org 651.290.7506 Item No: 4 Meeting ®ate: November 4 2013 Type of Business: Work Session To: Honorable Mayor and City Council From: James Ericson, City Administrator Item Title/Subject: Discuss Economic Development Specialist Position During previous budget discussions with the Council, staff had indicated that the Economic Development Specialist position should transition to part-time status given the decreasing tax increment finance revenues and the diminishing amount of economic development activity. Since that time, as the Council is aware, the Economic Development Specialist accepted a position with another city; her last day of employment was Oct 31, 2013. r The Economic Development Specialist had a wide range of responsibilities within the realm of economic development. Many of these activities will be absorbed by myself and other staff members however at some point in the next year we anticipate the need to utilize financial consultants to an even greater extent as well as advertising to hire someone part- time with economic development and communications experience or partnering with another community for a shared position. At this point it's too early to tell how soon or to what extent additional assistance will be needed. At this point staff is not recommending the Council immediately move to fill the position but rather we suggest that the tasks and responsibilities be absorbed by the City Administrator and other staff members when it makes sense to do so and utilize outside consultants when otherwise appropriate and necessary. Respectfully submitted, James Ericson City Administrator fv. MWINDS "A i _s -- - Item No: 5 Meeting Date: Nov 4, 2013 Type of Business: Work Session To: Honorable Mayor and City Council From; James Ericson, City Administrator Item Title/Subject: Discuss 2014 Council & Department Head Strategic Planning Session 1 The City Council and Department Heads annually meet to review and establish goals, objectives, action steps and initiatives. The exercise, referred to as the "Council Retreat", allows for free flowing Council and management staff discussions in an informal, semi - structured environment for purposes of providing staff with direction for the year. Through 2008, the Council Retreats were facilitated by an outside consultant to assist the Council and staff through the goal setting and teambuilding sessions. From 2009 to 2013, the Retreats were self facilitated, led by the Mayor and City Administrator. While this process has resulted in ambitious goals and refined objectives, in recent years it has been increasingly difficult to manage the facilitation process while remaining a part of the dialogue. At this summer's League of Minnesota Cities Annual Conference, Council Member Meehlhause and I attended a session on strategic planning led by consultant David Unmacht and Saint Anthony Village City Administrator Mark Casey. (Refer to the attached information from this session.) The session was enlightening and Both Council Member Meehlhause and I recognized that the City of Mounds View would greatly benefit from having the next Council Retreat led by an outside facilitator. The one point Mr. Unmacht made that struck home for us is that while self -facilitated strategic planning sessions may result in perfectly adequate outcomes, they typically fail to fully engage the one or two people leading the retreat—it's difficult to effectively facilitate and participate at the same time. The Council has previously expressed consensus that an outside facilitator would be desirable for the next Council Retreat, so we have requested a proposal from Mr. Unmacht, who has agreed to facilitate the next Council Retreat. Assuming a four-hour single -evening retreat, Mr. Unmacht would charge $1,500. The proposed 2014 Budget includes funds to cover a facilitated Council Retreat. Assuming the City Council is supportive of having Mr. Unmacht facilitate our 2014 Council Retreat, the only remaining decision would be to determine the date. Third or fifth Mondays are a first choice, but the third Mondays in Both January and February are holidays. (There are no fifth Mondays in January of February.) As an alternative, Staff would suggest a Tuesday night either later in January or early in February. Facilitation of 2014 Council Retreat November 4, 2013 Page 2 Review the information from the 2013 League of MN Cities annual Conference and the materials provided by Mr. Unmacht and provide Staff with direction as to scheduling a session with Mr. Unmacht. If the Council supports Mr. Unmacht as the facilitator, staff would further suggest identifying a date and time that would be most preferred along with a second choice in case of a conflict with Mr. Unmacht. Respectfully submitted, James Ericson City Administrator January 2014 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 3 4 -9--6-7 3 8 9 10 11 12 13 14 15 16 17 18 19 28 21 22 23 �24 25 26 27 28 29 30 31 February 2014 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 2 3 4 5 6 7 8 9 10 11 12 13 14 16 16 17 18 19 20 21 22 23 24 25 26 27 28 City of Mounds View, Minnesota Work Plan for Facilitation of a City Council Work Session October 21, 2013 Background Springsted is one of the most established independent public sector advisory firms in the United States. For nearly 60 years, we have continually grown in the range of our local government relationships, the comprehensiveness of our services and our prominence within the industry. Our managed growth is focused on providing local governments with a balance of national perspective and local expertise. Springsted is a women -owned business and is certified as a Women's Business Enterprise ("WBE") by the City of Saint Paul, Minnesota. Three employee -owners lead Springsted and our 65 staff members. Our headquarters are located in Saint Paul, Minnesota, with additional offices located close to our clients throughout the Midwest and Mid -Atlantic states. Specifically, our regional offices include Milwaukee, Wisconsin; Des Moines, Iowa; Kansas City, Missouri; Richmond, Virginia; Denver, Colorado and Los Angeles, California. Contact Information and Brief Bio Springsted Incorporated Mr. David Unmacht, Senior Vice President 380 Jackson Street, Suite 300 Saint Paul, Minnesota 55101 651-223-3047 Office 612-202-2391 Cell dunmacht@springsted.com Mr. David Unmacht is Director of Springsted's Organizational Management/Human Resources group. He is a long time local government professional with more than 15 years of county administration experience, having worked for Scott and Dakota counties, Minnesota. He has also worked as City Manager in Prior Lake and City Administrator in Belle Plaine, Minnesota, He works closely with city and county governments in many different fields including executive searches, organizational assessments, intergovernmental collaborations, facilitation services, goal setting and strategic planning. He has a master's in Public Administration from Drake University in Iowa and a bachelor's degree in Business Administration and Political Science from Wartburg College in Iowa. Mr. Umnacht was the recipient of the Minnesota Association of County Administrators (MACA) Joe Ries Excellence in County Management Award in 2000 and the Mhmesota City/County Management Association (MCMA) Award for Management Excellence in 2006. Mr. Umnacht is also a Credentialed Manager with the International City/County Management Association (ICMA) and a community faculty member with Metropolitan State University in Saint Paul, Minnesota. �' 1 Springsted steel P J City ofMounds View, Minnesota. Work Plan for Facilitation l0 Approach Mr. Umnacht brings extensive experience in wonting with elected officials and staff in many different settings and situations. Within the past four years, he has been the lead facilitator on over 30 work sessions with elected officials and staff. His work includes a wide range of local governments including small, medium and large organizations. He is noted for high energy, engaging and informative presentations, discussions and work sessions. He has a crisp and clean writing style and easily grasps different ideas and concepts and offers ideas and experiences in support of the City's goals and objectives. Prior to the work session he will personally contact each member of the City Council to discuss their ideas, thoughts and expectations. In addition, if staff participates in the work session he will partner with the City Administrator to develop a means to obtain input from the staff too. Once all pre - session input is obtained, he will work with the City Administrator to finalize the actual agenda and organize the details and logistics of the work sessions. It is important to be open and flexible and to learn more about the specific goals and objectives before finalizing the methods to be used in the actual work sessions. Philosophy Qualities Mr. Umnacht will bring a genuine passion and interest in working with the City. He approaches the experience with an underlying philosophy and professional qualities articulated as follows: Philosophy Establishing goals or initiating a strategic planning process is a deliberate and intentional decision to understand where the City has been, where you are today and where you want to go in the future. A strategic planning experience including the process and outcomes are effective tools for city officials in four distinct ways: • Decision -Making —to assist you in making choices about your City • Leadership —to assist you in identifying and establishing goals and strategies • Management—to operationalize your plans and accountabilities • Communication —to inform others about your plans and priorities Professional Qualities We believe you will find each of these qualities in Mr. Unmacht's work with the City of Mounds View. • Organized and effective meeting management • Extensive knowledge of city government • Extensive knowledge of the elected officials and staff roles and relationships • Flexible process to adapt to the City's goals and objectives • Value added contributions to the work sessions and discussions • Fair, objective and impartial to all participants Stimulate and encourage open discussion and creative ideas Excellent communicator S p r 1 n y s t e cl City of Mounds View, Minnesota. Work Plan for Facilitation References The following references are available for you to contact. Feel free to contact any one of the individuals. If you would like additional references, please let me know. City of Coon Rapids, Minnesota (2011) Population: 61,900 Mr. Matt Fulton, former City Manager 651-242-2422 City of St. Anthony Village, Minnesota (2011-2012.2013) Population: 8,200 Mr. Mark Casey, CityAdministrator 612-782-3311 City of Carver, Minnesota (2012-2013) Population: 3,790 Mr. Brent Mareck, CityAdministrator 952-448-5353 City of White Bear Lake, Minnesota (2011) Population: 24,300 Ms. Ellen Richter, Assistant City Administrator 651-429-8505 City of Waconia, Minnesota (2013) Population: 10,800 Mr. Shane Fineran, Assistant City Administrator 952-442-3103 City of Faribault, Minnesota (2013) Population: 23,450 Mr. Brian Anderson, City Administrator 507-333-0355 City of Melrose, Minnesota (2012) Population: 3,200 Mr. Mike Brethorst, City Administrator 320-256-4278 City of Hastings, Minnesota (2013) Population: 22,300 Ms. Melanie Mesko-Lee, CityAdministrator 651-480-2326 Anticipating a one-half day (four hour) work session, the estimated fee is $1,500. There will be no miscellaneous expenses associated with the facilitation. This fee includes all preparation; pre -session planning, facilitation and working with the City Administrator on the summary and follow-up document after the session is completed. � 11; kq __ David Unmacht Springsted Incorporated October 21, 2013 ei S rnsec p �ti City of Mounds View, Minnesota. Work Plan for Facilitation© League of Minnesota Cities Strategic Planning - Simplified for Practical Use ® Strengthen relationships within the city ® Create an organizational direction and work to unite everyone toward that purpose ® Provide a roadmap to get to where you want to go ® Improve ability to focus on most important priorities and issues Provide direction on where to allocate limited resources ® Improve financial planning, forecasting and budgeting • Improve accountability and capacity to measure performance and outcomes ® Coalesce employees around common goals and priorities 0 Build camaraderie and teamwork ® Create a common vision to enhance organizational effectiveness ® Identify programs and services that need improvement ® Assist in defining roles and responsibilities ® Communicate the important priorities to the citizens ® Create partners and advocates within the community David Unmacht Springsted Incorporated June 2013 League of Minnesota Cities Strategic Planning - Simplified for Practical Use Vision ® An outcome, a result and an ideal to strive for over a period of time. ® A destination and long-term community value that requires a resolve and commitment to achieve and then to maintain. Mission o A purpose and reason for existence; identify why the organization exists. o Provides a framework or context within which the strategies are created and connected to the vision. ��f�.�," ® An essential public policy priority which defines the vision and organizes the goals. u a Typically a long-term timeframe; strategies will not change often, if at all. M ® A measurable and desired activity, projector purpose that requires resources. ® Time commitment in pursuit of goals will vary - they can be succinct and short - but also longer term (five to ten years). Actions ® Individual steps and activities necessary to implement a goal, reach a strategy and fulfill your vision. ® Specific action steps are continuously evolving and changing as they are identified and completed. 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O N U; U Q d Q3 Vi r, Q O_ Cf) a) a) c - C/) 0 Cd CU > C/) a) C) cu L a) 0 L cn a) 0 0 C/) 9-- C: CU cn a) 0 D- a) L— 0) E a) E C) :D co co E Cf) U P� CICbb r� C 4-j bJD N (cM USer, bp U) U] U .,, Item Na: G v Meeting Data: November 4 2013 Type of Business: Work Session City )f 11you ids View Staff Report To: Honorable Mayor and City Council From: James Ericson, City Administrator Item Title/Subject: Review Policy on Disposition of Surplus / Excess Property Attached is the City's policy regarding unclaimed and surplus property, along with a report from the League of MN Cities and several examples of policies from other communities in the metro area. The City's policy indicates that before anything can be disposed of, the City Council must first determine it to be so: "When city equipment, furniture, vehicles, etc. have been replaced or are no longer it working condition, the City Council may declare this property to be surplus." While the policy seems appropriate and similar to other communities, in practice the necessity to have the City Council "declare" a piece of equipment to be surplus or excess before it can be disposed of is inefficient, especially when the piece of equipment (or any other item owned by the City) has no value. If an old chair breaks and cannot be repaired, it cannot simply be thrown out—the City Council has to declare it to be surplus first. It may be more practical and efficient if the City Council delegates to the City Administrator the ability and authority to declare such property to be surplus and disposed of in accordance with the established policy. As an alternative to this, perhaps such authority can be delegated only for items having been determined to hold no value or for those items with a replacement value less than $500. Staff is simply asking the Council to discuss what might be appropriate in this regard. Respectfully submitted, James Ericson City Administrator Attachments: 1, Resolution 6721 2. LMC Article— Disposal of City Properly 3. Other Cities' Policies r CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA WHEREAS, the City of Mounds View from time to time has the need to dispose of unclaimed or surplus property, and WHEREAS, it is the desire and intent of the City to dispose of such property in a fair and effective fashion, and WHEREAS, the City wishes to establish a consistent practice by which said property is either sold, donated, or disposed in such a fashion to optimize value for the community, and WHEREAS, an open and visible process of dealing with unclaimed and surplus property is important to the City. NOW, THEREFORE BE IT RESOLVED that the Mounds View City Council does hereby approve effective March 22, 2004, the following policy: 1. Personal property. When personal property has lawfully come into the possession of the city in the course of its municipal operation, including the seizure or confiscation thereof by the police or by any other officer or employee of the city, and the property has remained unclaimed by the owner and has been in the possession of the city continuously for a period of 60 days, the City Clerk/Administrator may order the property to be disposed of in the manner provided in this Resolution. 2. Surplus Property. When city equipment, furniture, vehicles, etc. have been replaced or are no longer in working condition, the City Council may declare this property to be surplus. 3. Disposition of Unclaimed or Surplus Property. Unclaimed or surplus property can be disposed of using the following methods: 1) Public auction, 2) direct sale to the public; 3) donation to a nonprofit organization or other governmental unit; or 4) in the case of damaged property or property which has no significant value, the property may be recycled or disposed of as refuse. 4. Notice of auction or sale. If the property is going to be sold, either by auction or directly, an advertisement must be placed in the official newspaper of the city. The sale shall be held not less than six days following the date of the publication of the notice. 5. Content of notice. The notice shall contain: (1) a general description of the items of property to be sold; (2) the general manner under which the property came into the possession of the city; (3) whether the property will be auctioned or sold directly; and (4) the time and place of the auction or sale. 6. Sale. The auction or sale shall be conducted by the City Cierk/i �dminlstratGr or his or her designee. 7. Postponement. The auction or sale may be postponed frorn time to time by inserting a notice of such postponement as soon as practicable in the newspaper in which the original notice was published. 8. Certificate of sale. When the sale of the property is made, the City CleridAdministrator shall deliver to the purchaser a bill of sale containing a description of the property sold and the price paid for each item. 9. Proceeds of sale. Proceeds of the sale shall be deposited by the City Clerk/Administrator in the appropriate fund of the city. Within six months from the date of the sale the former owner of any item of such property may make application to the city for payment of the proceeds of the sale and after satisfactory proof of ownership furnished to the city within six months from the date of sale, the city council shall order the sale price to be paid to the former owner, after deducting therefrom the actual or reasonable cost and expenses necessarily expended by the city in the conduct of the sale and the storage and care of the property. 10. Exceptions. This Resolution also does not apply to any impounded animal or real property; either land or buildings. Adopted this 22nd day of March 2004. Jerry Linke, Mayor ATTEST: Kurt Ulrich, City Administrator (SEAL) ities occasionally own real or per- sonal property that they no longer need and wish to dispose of. "Real property" is real estate, or basically land and things attached to land such as buildings. Cities can often convey real property that is no longer needed."Personal property" is something subject to ownership that is not classified as real property, such as vehicles or equipment. Cities may own unneeded or unwanted personal prop- erty, such as obsolete office equipment, furniture or computers. There are a number of issues to consider when disposing of surplus city property. Cities should always consider the value of city property to be disposed. if the property has any monetary value, disposal of the property without remu- neration arguably is akin to a municipal expenditure subject to the public pur- pose expenditure doctrine. In order for an expenditure of public funds to be lawful, there should be a public purpose for the expenditure, and there must be specific or implied authority for the expenditure in statute or in the city's charter. (See League research memo, Public Atipose Expenditures available in the Library section of the LMC web site at: ww­;v.lmnc.org.) State law authorizes statutory cities to acquire, manage, and dispose of real and personal property. Minnesota Stat- utes Section 412.211 specifically autho- rizes a statutory city to sell, convey, lease or otherwise dispose of real and personal property as its interests may require. Charter cities may have other provisions in their charters regarding their authority over real and personal property. Specific questions concerning a city's authority should be directed to the city attorney. Disposal of property by transferring it to another party is generally con- tractual in nature. Just like purchasing property, if property to be disposed of By Jed Burkett consists of supplies, materials or equip- ment, the contract is subject to the uniform municipal contracting law (Minnesota Statutes Section 471.345). If the contract is estimated to exceed $50,000, the city must use the connpeti- tive bidding process. If the contract is estimated to exceed $10,000 but not $50,000, the city has the option of using the competitive bidding process or making the contract by direct nego- tiation. If the contract is estimated to be less than $10,000, the city has the option of making the contract upon quotation or in the open market. (See League research memo, Contpelitive Bid- ding Requirentests in Cities, available in the Library section of the LMC web site at: www.lmnc.org). Contracts concerning the purchase or sale of real property are not generally required to be competitively bid. Statu- tory cities may dispose of real property not held in trust for a specified public use. Cities generally have the power to sell or lease land or buildings they no longer need. Housing redevelopment authorities and economic development authorities must hold a public hearing before selling or leasing most land. There are a few limited situations tinder which a city may give away land or sell it for a nominal amount of money. (See League research memo, Purchase and Sale of Real Property, available in the Library section of the LMC web site at: www.lmne.org.) Different considerations may arise depending on the intended recipient of the propertyThe disposition of city equipment, supplies, materials or other property, including real property, to the federal government is not subject to the utnifortn contracting law or other char- ter or statutory provisions (Minn. Stat. Sec. 471..64). Also, a city may transfer its personal property for nominal value or without compensation to another public corporation such as a county or MAKcru 2005 MINNESOTA CITIES school district for public use (Minn. Stat. Sec. 471.85). Cities are generally prohibited from selling city property to city employees or officials. However, property owned by a city may be sold to a city employee after reasonable public notice at a pub- lic auction or by sealed response, if the employee is not directly involved in the auction or process pertaining to the administration and collection of sealed responses (Minn. Stat. Sec. 15.054). Other requirements relate to disposal of mrclained, forfeited or abandoned property. Property lawfully coming into a city's possession in the course of municipal operations, and remaining unclainned by the owner for a period of at least 60 days, may be disposed of by the city under an unclaimed property ordinance providing for sale at public auction or through a community ser- vice nonprofit organization (Minn. Stat. Sec. 471.195). Disposition of prop- erty forfeited to the city in connection with criminal activity mid the distribu- tion of resulting proceeds is specifically governed by state law (Mirm. Stat. Sec. 609.5315). Similarly, state law governs the disposal of impounded abandoned motor vehicles (Minn. Stat. Ch. 168B). Additional information. For further information, or to request copies of relevant state statutes or League research memos, please contact the League's Research Department at (651) 281- 1220 or (800) 925-1122. Research memos are also available on the LMC web site. Please consult your city attor- ney for specific legal advice concerning the disposal of city property. Ir Jed Budeett is research attorney With tiee League ofPlitn9esota Cities. Phone: (65 1) 281-1224. E-mail: jbarkett@Inrncorq. Subil. 2. Disposal of Unclaimed Proper -Sy A. Definition. For the purpose of this Subdivision, the term "abandoned property" means tangible or intangible property, other than motor vehicles, that has come into the possession of the City in the course of governmental operations or having been turned over to the City by a person after being found on public or private property. B. Procedure for Handling Abandoned Property. 1. All such property shall be placed in charge of the Chief of Police who shall, if the identity and whereabouts of the owner is unknown, initiate and pursue such reasonable investigation as may be indicated under the circumstances. When the identity and whereabouts of the owner has been established, written notice shall be given that the property can be claimed by the owner from the Chief of Police. 2. if the Chief of Police is unable to identify the owner, he may publish a notice once generally describing the property and stating that it will be returned to the finder thirty (30) days after publication unless the owner establishes his right to it within that period of time. If the owner fails to respond to the publication, the Chief of Police shall return the property to the finder. 3. If the owner is not found, and the finder refuses the return of the property, the Chief of Police shall report the sane to the City Administrator who shall present the matter to the Council for a declaration of abandonment. C. Declaration and Sale. When the Council has declared the property abandoned, it shall be sold in the same manner as excess property and the proceeds shall be placed in the General Fund. Sulid. 3. Disposal of )Excess Property. A. Declaration of Surplus and Authorizing Sale of Property. The Administrator may, from time to time, recommend to the Council that certain personal property (chattels) owned by the City is no longer needed for a municipal purpose and should be sold. By action of the Council, said property shall be declared surplus, the value estimated and the Administrator authorized to dispose of said property in the manner stated herein. B. Surplus Property With a Total Estimated Value of Less Than $100.00. The Administrator may sell surplus property with a total value of less than $100.00 through negotiated sale. C. Surplus Property With a Total Estimated Value Between $100.00 and $500.00. The Administrator shall offer for public sale, to the highest bidder, surplus property with a total estimated value of from $100.00 to $500.00. Notice of such public sale shall be given stating time and place of sale and generally describing the property to be sold at least ten days prior to the date of sale either by publication once in the official newspaper, or by posting in a conspicuous place in the City Hall at the Administrator's option. Such sale shall be by auction. D. Surplus Property With a Total Estimated Value Over $500.00. The Administrator shall offer for public sale, to the highest bidder, surplus property with a total estimated value over $500.00. Notice of such public sale shall be given stating time and place of sale and generally describing property to be sold at least ten days prior to the date of sale by publication once in the official newspaper. Such sale shall be to the person submitting the highest bid. E. Receipts From Sales of Surplus Property. All receipts from sales of surplus property under this Section shall be placed in the General Fund. Subd. 4. Persons Who May Not Purchase - Exception. A. No employee of the City who is a member of the administrative staff-, deparhnent head, a member of the Council, or an advisor serving the City in a professional capacity, may be a, purchaser of property under this Section. Other City employees may be purchasers if they are not directly involved in the sale, if they are the highest responsible bidder, and if at least one week's published or posted notice of sale is given. RM—MM-9 Policy for the Sale of Sara plus City Property I. PURPOSE To establish and set forth the options for the sale or disposal of City -owned surplus property and to define requirements to be followed when utilizing a particular option for disposal of such property. Ii. APPLICABILITY This policy applies to all City employees who are involved in either the disposition or the purchase of surplus City property. III. DEFINITIONS Public Auction – A sale which is open to the public and at which the property is sold to the highest bidder. Public Sale – A sale, other than a public auction, in which property is offered for sale to the public and sold through either sealed bids, direct negotiation, quotations, consigranent or open market. The City retains the right to refuse any and all offers at its sole discretion. Open Market – A freely competitive, widely accessible market in which the City sells its property to the buyer at a price determined by competition. The sale is not restricted to price or bidder; it is determined by the best price offered and accepted by the City. IV. OPTIONS FOR DISPOSAL OF SURPLUS PROPERTY 1. Public auction (preferred default option) 2. Public sale 3. Sale through consignment by a nonprofit organization or other govermnental unit 4. Refuse/recycled (damaged property or property which has nominal or no value) 5. Donation as authorized by City Council in situations where the cost of disposal exceeds the property value In all cases, except a public auction, the department head for the department in which the property is or has been utilized, must: 1) determine and approve the method of disposal; 2) complete and sign a disposition form authorizing the property's disposal; and 3) provide the disposition form to the City ClerklAdministrative Services Coordinator for final approval. Gage 2 V. GUIDELINES FOR DISPOSAL OF SURPLUS PROPERTY SOLD AT PUBLIC AUCTION The City may conduct its own auction or enter into an agreement with another entity to conduct the auction. Notice of auction shall be given stating the time and place of auction and generally describing the property to be sold at least ten days prior to the date of sale by publication once in the official newspaper. Computer systems and related electronic equipment is to be disposed of as refuse/recycled or donated property in accordance with the guidelines therefor. VI. GUIDELINES FOR DISPOSAL OF SURPLUS PROPERTY NOT SOLD AT PUBLIC AUCTION (This section is consistent with M.S. 471..345 and the City's purchasing policy) The department head shall determine an estimated value (or selling price) for the surplus property based on valuation resources, e.g. Blue Book value, etc. After determining an approximate sale price, the following guidelines should be followed when disposing of surplus property. Official publication is required in certain situations. Use of advertising shall be determined by the department head in consultation with the City Clerk/Administrative Services Coordinator. Property valued over $50,000 If the amount of the sale price is estimated to exceed $50,000, sealed bids shall be solicited. A request for the bids shall be published once in the official newspaper at least ten days before the last day for submission of bids. The notice shall state the time and place of receiving bids and contain a brief description of the subject matter. Additional means of advertising may be utilized as determined by the department head. The City Council must take action to accept or reject the bid(s) for the sale of the property. Property valued from $15,000 to $50,000 If the amount of the sale price is estimated to exceed $15,000 but not to exceed $50,000, the sale shall be made upon sealed quotations, by obtaining two or more quotations. Property valued from $5,000 to $15,000 If the amount of the sale price is estimated to exceed $5,000 but not to exceed $15,000, the sale may be made upon receipt of at least two verbal quotations. The department head shall prepare a written memo containing the specifics of the verbal quotations. This information shall be kept on file with the applicable documents related to the sale. Property valued less than $5,000 If the amount of sale price is estimated to be less than $5,000, the sale maybe made in accordance with the City's general purchasing guidelines. Eagan o MN Page 3 VII. GUIDELINES FOR DISPOSAL OF DAMAGED SURPLUS PROPERTY OR PROPERTY WITH NO SIGNIFICANT VALUE As determined by the department head and City Cleric/Administrative Services Coordinator, surplus property that is deemed to be damaged or that has no significant value, may be recycled or disposed of as refuse. VIII. GUIDEILINES FOR DONATION OF SUPRLUS PROPERTY Property may be donated only by official action of the City Council upon a staff recommendation that the cost of disposal exceeds the property value. IX. PROCESS TO BE FOLLOWED FOR THE SALE OF SURPLUS PROPERTY All property deemed to be of no use to the City shall be disposed of in a manner determined by one of the options outlined in Section IV. Prior to disposal, Council action is required to declare the property as surplus. If property has been approved for replacement by the Council during a regular budget cycle, it shall be assumed that the surplus property is to be sold for a reasonable price and it is not necessary for the Council to take additional action declaring it surplus. X. RECEIPTS FROM SALES OF SURPLUS PROPERTY All receipts from sales of surplus property shall be placed in the appropriate City fund. XI. PURCHASE OF SURPLUS PROPERTY BY EMPLOYEES No employee of the City who is a member of the administrative staff, department head, a member of the Council, or an advisor serving the City in a professional capacity may be a purchaser of property under this policy. Other City employees may be purchasers if they are not directly involved in the sale, if they are the highest responsible bidder, and if at least one week's published or posted notice of sale is given. XII. RESPONSIBILITY The City Administrator, or designee, shall have primary responsibility for implementation and coordination of this policy. All department heads shall be responsible for enforcement of this policy within their respective departments. Date of Approval: Signed: Mommul M.Malfall P®liey on the Sale or Disposal of City Equipment: The City /administrator will determine the appropriate method of selling or disposing of unneeded City property, which may include advertising the sale of the equipment, auctioning or providing for the equipment to be auctioned, trading in existing City equipment when purchasing new equipment; or giving, selling, or trading the equipment with another public entity. Under no condition will unneeded City equipment be sold to a City officer. A City employee may purchase City equipment only when it is sold through an auction or a sealed bid process in which the equipment is sold to the highest responsible bidder. If the expected selling price of the equipment is more than $50,000, the City will follow competitive bidding requirements. In Spring of 2008, the City of Fridley contracted with "PropertyRoom.com" to dispose of surplus equipment and assets held in the police department's property and evidence rooms. PropertyRoom.com is provided at no cost to the City or taxpayers, and cuts costs to the City by reducing staff time for auction preparation. PropertyRoom.com holds auctions continuously as items are received from the City. Each item is inspected, cleaned, repaired (as needed), sorted and digitally photographed. PropertyRoom.com packages and ships items from their warehouse directly to the winning bidder. 305.03 Surplus Property. When city equipment, furniture, vehicles, etc. have been replaced or are no longer in working condition, the city manager may declare this property to be surplus. 305.05 Disposition of Unclaimed or Surplus Property. Unclaimed or surplus property can be disposed of using the following methods: 1) Public auction, 2) direct sale to the public; 3) donation to a nonprofit organization or other governmental unit; or 4) in the case of damaged property or property which has no significant value, the property may be recycled or disposed of as refuse; or 5) any other method that is approved of by State Statute. (Amended Ord 2008-996) 305.07. Disposition of Unclaimed Property. Subdivision 1. Notice of auction or sale. If the property is going to be sold, either by auction or directly, an advertisement must be placed in the official newspaper of the city. The sale shall be held not less than six days following the date of the publication of the notice. Subd. 2. Content of notice. The notice must describe the property found or recovered and to be sold, and must specify the time and place of the auction or sale. Subd. 3. Postponement. The auction or sale may be postponed from time to time by inserting a notice of such postponement as soon as practicable in the newspaper in which the original notice was published. Subd. 4. Certificate of sale. When the sale of the property is made, the purchaser shall receive a bill of sale containing a description of the property sold and the price paid for each item. Subd. 5. Proceeds of sale. Proceeds of the sale shall be deposited by the manager in the appropriate fund of the city. Within six months from the date of the sale the former owner of any item of such property may make application to the city for payment of the proceeds of the sale and after satisfactory proof of ownership furnished to the city within six months from the date of sale, the city council shall order the sale price to be paid to the former owner, after deducting therefrom the actual or reasonable cost and expenses necessarily expended by the city in the conduct of the sale and the storage and care of the property. 305.09. Disposition of Surplus Property. Subdivision 1. Notice of auction or sale. If the property is going to be sold, either by auction or directly, notice must be placed on the city's website. The sale shall be held not less than six days following the date of the placement of the notice on the City's website. Subd. 2. Content of notice. The notice shall contain: (1) a general description of the items of property to be sold; and (2) whether the property will be auctioned or sold directly; and 3) the time and place of the auction or sale. Subd. 3. Advertising. Items for sale must be advertised in a newspaper of general circulation, or on an appropriate website detailing the method of sale, or the City may contract to sell items using an electronic selling process in which purchasers compete to purchase the surplus supplies, materials, or equipment at the highest purchase price in an open and interactive environment. Subd. 4. Certificate of sale. When the sale of the property is made, the purchaser shall receive a bill of sale containing a description of the property sold and the price paid for each item. Subd. 5. Proceeds of sale. Proceeds of the sale shall be deposited by the manager in the appropriate fund of the city. 305.19. Exceptions. This section does not apply to dogs, cats, or other domestic animals impounded pursuant to the statute or this code. This section also does not apply to real property, either land or buildings. Minne"olis�M N Computers and Computer Peripherals: All computers must be cleaned of data prior to disposal ?. Interdepartmental Reuse: Send a request for e-mail to all City, Library Board and Park Board staff to Communications, listing the equipment that is available, a time, date, contact person, and location where city staff can view and pick up equipment for their division to keep. -rhe email should specify that the equipment is only for City or board business, and not personal usage. 3. Equipment Valued at over $5,000: If the equipment had a value of over $5,000.00 when purchased, it must be taken off the fixed asset inventory. 4. Surplus Equipment Evaluation: Procurement Division staff will evaluate the equipment to determine if there is a monetary value and a market for the equipment. If there is both monetary value and a market, the person assigned will determine the most cost effective way to sell the equipment using auction, sealed bids or another sale method as appropriate. 6. Donations to Non -profits: Equipment determined to have no monetary value and no existing market will be donated to non-profit agencies working with the City. 6. Junk: If equipment has no monetary value, there is no market and it cannot be given away, then the item can be junked and designated as junk, on the fixed asset inventory, as appropriate. In order to dispose of the asset as junk from the fixed asset inventory a FD (fixed asset disposition) document must be created and processed. (Note: If a salvage value is assigned to the asset in the system the department must eliminate the salvage value on the fixed asset system prior to disposal, a FC (fixed asset change) document must be created and processed before the FD is processed.) Costs for disposed materials are paid for by the department from which the items originated.