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Home My WebLink About10D SMSC MOU for liquor on golf course O � PRip !� � v � 4646 Dakota Street SE Prior Lake_ MN 55372 ` � I NNESO� P CITY COUNCIL AGENDA REPORT MEETING DATE: March 11, 2013 AGENDA #: 10D PREPARED BY: Frank Boyles, City Manager PRESENTED BY: Frank Boyles AGENDA ITEM: Consider Approval of a Resolution Approving a Memorandum of Under- standing (MOU) with the Shakopee Mdewakanton Sioux Community (SMSC) DISCUSSION: Introduction This agenda item requests City Council consideration of a Memorandum of Un- derstanding with the SMSC to sell alcoholic beverages by beverage cart on fee lands in the golf course. Hi StON Some years ago, the SMSC purchased the old Lone Pine Golf Course. The course was redesigned and opened in 2005. A portion of the golf course is on trust land. This is land purchased by the SMSC, but held in trust for them by the Federal government. The Meadows Golf Club building is on trust land, while much of the golf course itself is on fee land. Last year the SMSC decided to add alcoholic beverages to their list of amenities. In order to do so, the SMSC had to secure Federal approval and approval from the Business Council. In addition, the SMSC adopted a liquor ordinance as well as an alcohol implementation plan. Current Circumstances The SMSC is authorized to issue a license allowing the service of alcoholic bever- ages on land which has been placed in trust. However, land that remains in fee ; title is not contemplated in the licensure or ordinance. '� For most SMSC facilities this is not a problem with the exception of the golf course. The SMSC desires to sell liquor both in the club house and on the course using beverage carts as is a common practice at golf courses. SMSC representatives have discussed this matter with the Minnesota Department of Public Safety who does not object to a MOU between the City and SMSC to allow liquor sales on the golf course. The City Attorney has worked extensively with SMSC attorneys to prepare an MOU for this purpose (see attached copy). The Business Council has considered and approved this document. Conclusion The City Council should determine if it is amenable to entering into the MOU. ISSUES: The MOU confirms the intent of the two parties that only one liquor license is is- sued for SMSC properties regardless of their ownership status. It also confirms that liquor sales are to be limited to beverage carts on the course. The Police De- partment is expected to continue its criminal compliance checks while the SMSC is responsible for the civil checks. The SMSC is to purchase insurance and the MOU provides a hold harmless for the City and an indemnification agreement as well. The MOU is for one year but is automatically renewed unless a requested for amendment or cancellation is re- ceived by November 15. The Council should determine if the provisions set forth in the MOU are satisfactory. FINANCIAL The MOU does not provide for any fee payment. On the other hand, lands held in IMPACT: fee do generate property taxes. ALTERNATIVES: 1. Motion and second to adopt a resolution approving the MOU and authorizing the Mayor and City Manager to execute same. 2. Take no action and direct the staff to provide additional information. RECOMMENDED Alternative 1. MOTION: n O � PRIp� ti � U tr1 4646 Dakota Street SE � Prior Lake, MN 55372 RESOLUTION 13-xxx A RESOLUTION APPROVING A MEMORANDUM OF UNDERSTANDING WITH THE SHAKOPEE MDEWAKANTON SIOUX COMMUNITY (SMSC) Motion By: Second By: WHEREAS, THE City and SMSC have worked together to craft a Memorandum of Understanding allowing liquor to be served by beverage carts on fee land located at Meadows on Mystic; and WHEREAS, Both parties believe that the agreement affords protections to all parties, NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The Memorandum of Understanding dated March 11, 2013 is hereby approved. 3. The Mayor and City Manager are authorized to execute the Memorandum of Understanding on behalf of the City. PASSED AND ADOPTED THIS 11th DAY OF MARCH 2O13. YES NO Hedber Hedber Keene Keene McGuire McGuire Morton Morton Souku Souku Frank Boyles, City Manager MEMORANDUM OF UNDERSTANDING BETWEEN THE SHAKOPEE MDEWAKANTON SIOUX COMMUNITY AND THE CITY OF PRIOR LAKE This Memorandum of Understanding ("MOU") is being made by and between the Government of the Shakopee Mdewakanton Sioux Community (SMSC or the Tribe), a federally recognized Indian Tribe, and the City of Prior Lake, a municipality organized under the laws of the State of Minnesota, to address liquor transactions on the SMSC golf course, commonly referred to as "The Meadows Golf Course." The Tribe and the City of Prior Lake shall be referred to collectively as the "Governments". A. ACKNOWLEDGEMENTS WHEREAS, the SMSC intends to sell intoxicating liquor at the Meadows Golf Course for on-site consumption. The Meadows Golf Course is located on the SMSC's trust land with a portion of the golf course located on fee land within the City of Prior Lake; WHEREAS, the SMSC licenses intoxicating liquor sales at the Meadows Golf Course in accardance with its On-Sale Liquor Ordinance, which was approved by the Department of the Interior in compliance with 18 U.S.C. § 1161; WHEREAS, Federal law requires that the liquor "act or transaction is in conformity both with the laws of the State in which such act or transaction occurs and with an ordinance duly adopted by the tribe"; WHEREAS, Minnesota Statutes, Section 340.101 (15) defines the licensed premises of the golf course as "the entire golf course except for areas where motor vehicles are regularly parked or operated." WHEREAS, the City of Prior Lake Liquor Control Ordinance was enacted without applicability to the SMSC in mind and does not apply to circumstances of partial or concunent jurisdiction over sales of intoxicating liquor; WHEREAS, the Parties have consulted the Minnesota Department of Public Safety ("DPS") about regulating liquor acts or transactions on the Meadows Golf Course and have informed the DPS about this MOU; and WHEREAS, it is in the best interests of the Governments, and of all of our citizens, to provide effective regulation over intoxicating liquor sales and consumption at the Meadows Golf Course and to avoid confusion regarding the regulation of such intoxicating liquor transactions. B. LICENSING. The Governments agree that it would be unnecessarily confusing and burdensome for the Meadows Golf Course to maintain multiple liquor licenses. The Governments agree that instead of maintaining two separate liquor licenses for the Meadows Golf Course, the sale and consumption of intoxicating liquor on the part of the Meadows Golf Course held in fee shall comply with the terms of this MOU: 1 1. SMSC On-Sale Liquor License. The Tribe shall issue an On-Sale liquor license to the entire Meadows Golf Course and a certified copy of the license shall be provided to the City of Prior Lake. 2. SMSC Golf Course Alcohol Implementation Plan. The Tribe shall provide a copy of its Alcohol Implementation Plan ("AIP") for the Meadows Golf Course to the City of Prior Lake. The Tribe, as required, will comply with the AIP. The Tribe will provide the City a written copy of any amendment to the AIP within one week of making such an amendment. C. LOCATION AND METHOD OF SALES. Sales of intoxicating liquor on the Meadows Golf Course fee land will be made only from beverage carts that will move about the entire golf course. D. IMPLEMENTATION. To implement this MOU, the Governments agree to the following information sharing, meetings, and enforcement action: 1. Compliance Checks. The Governments recognize that nothing in this agreement changes the City Police Department's authority to conduct criminal compliance checks. All civil compliance checks shall be the responsibility of the Tribe. 2. Notice of Alle�ed Violation. If the City of Prior Lake receives information that the Meadows Golf Course is violating a state liquor law or the City Liquor Control Ordinance, then the City agrees to provide the Tribe with written notice of the alleged violation. 3. Insurance. The Tribe has obtained liability insurance for the Meadows Golf Course that complies with Minnesota Statute § 340A.409. If requested, the Tribe shall provide the City with proof of such liability insurance. 4. Hold harmless. The Tribe agrees that the City shall not be liable for any conduct occurring on the Meadows Golf Course and agrees to hold the City harmless for the Tribe's operation and governance of the Meadows Golf Course. The Parties recognize that the Tribe has enacted and maintains a Tort Claims Ordinance, which covers torts occurring on the Meadows Golf Course. 5. Indemnification. Each Party (referred to in this section as the "Indemnifying Party") agrees to defend, indemnify, and hold harmless the other Party against any and all claims, liability, loss, damage, or expense arising under the provisions of this Agreement and caused by or resulting from negligent acts or omissions of the Indemnifying Party and/or those of the Indemnifying Party's employees or agents. Under no circumstances, however, shall the City of Prior Lake be required to pay on behalf of itself and the SMSC any amounts in excess of the limits on liability established in Minnesota Statutes Chapter 466 applicable to any one Party. The limits of liability for all Parties may not be added together to determine the maximum amount of liability for either Party. The intent of this paragraph is to impose on each Party a limited duty to defend and indemnify each other subject to the limits of liability under Minnesota Statutes Chapter 466, which are applicable to the City of Prior Lake. The purpose of creating this duty to defend and 2 indemnify is to simplify the defense of claims by eliminating conflicts among the Parties and to permit liability claims against both Parties from a single occurrence to be defended by a single attorney. E. TERM AND REVIEW PROCESS. This MOU shall become effective upon the date of its signing and continue through until December 31 St of each year. Should any party propose a change or amendment to this MOU, it agrees to provide written notice of the specific change or amendment on or before November 15 If neither party provides written notice of a proposed amendment or withdrawal, then the MOU shall automatically renew for an additional term. In the event either Party to this MOU withdraws from this MOU, written notification shall be provided to the other Party. F. JURISDICTION AND RESERVATION OF RIGHTS. Nothing in this MOU shall expand, restrict, limit or waive the regulatory authority, the jurisdiction, or the sovereignty of any of the Governments. G. AGREEMENT. In recognition of the interests of all citizens and our responsibilities as Governments, we do hereby enter into this Memorandum of Understanding and in the spirit of cooperation we affix our signatures on this day of , 2013. 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