HomeMy WebLinkAbout5D - SMSC MOU for Liquor Sales at Golf Course O* PRJO4
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4646 Dakota Street SE
Prior Lake,MN 55372
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CITY COUNCIL AGENDA REPORT
MEETING DATE: June 9, 2014
AGENDA#: 5D
PREPARED BY: Frank Boyles, City Manager
PRESENTED BY: Frank Boyles
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION APPROVING A MEMORAN-
DUM OF UNDERSTANDING (MOU)WITH THE SHAKOPEE
MDEWAKANTON SIOUX COMMUNITY (SMSC) FOR LIQUORE SALES ON
MEADOWS AT MYSTIC LAKE.
DISCUSSION: Introduction
This agenda item requests City Council consideration of a Memorandum of
Understanding with the SMSC to sell alcoholic beverages by beverage cart on
fee lands in the golf course.
History
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 Coun-
cil. In addition, the SMSC adopted a liquor ordinance as well as an alcohol im-
plementation plan.
Last year on March 11, 2013, the City Council approved the MOU but
amended the agreement so it would be considered for approval each year at
the same time liquor licenses are considered.
Current Circumstances
The SMSC is authorized to issue a license allowing the service of alcoholic
beverages on land that 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 clubhouse and on the
course using beverage carts, as is a common practice at golf courses.
SMSC representatives have discussed this matter with the Minnesota Depart-
ment of Public Safety who does not object to a MOU between the City and
SMSC to allow liquor sales on the golf course.
Conclusion
The City Council should determine if it is amenable to renewing the MOU.
ISSUES: The MOU confirms the intent of the two parties that only one liquor license is
issued for SMSC properties regardless of their ownership status. It also con-
firms that liquor sales are to be limited to beverage carts on the course. The
Police Department 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 and is considered for renewal together with all other liquor licenses the
first meeting in June of 2015.
The Police Chief reports that over the last year there have been no incidents
reported with respect to the illegal sale of liquor from beverage carts on fee
property. Therefore, renewal of the MOU is recommended.
FINANCIAL The MOU does not provide for any fee payment. On the other hand, lands
IMPACT: held in fee do generate property taxes.
ALTERNATIVES: 1. Motion and second as part of the consent agenda to adopt a resolution ap-
proving 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:
PRIO
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4646 Dakota Street SE
411vsoge. Prior Lake,MN 55372
RESOLUTION 14-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 (MOU)
allowing liquor to be served by beverage carts on fee land located an Meadows on Mystic: and
WHEREAS, Both parties believe that the agreement affords protections to all parties.
WHEREAS, The MOU has been in force since March 11, 2013 and no incidents have been reported.
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 June 1, 2014 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 9th DAY OF JUNE 2014.
VOTE Hedberg Keeney McGuire Morton Soukup
Aye E 0 0 0 ❑
Nay ❑ 0 0 0 0
Absent ❑ 0 0 0 0
Abstain 0 0 ❑ 0 0
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
accordance 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
concurrent 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 Alleged 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 June 30, 2014. The MOU shall be considered for renewal for a
term of July 1 to June 30 by the city council together with liquor license renewals on or about the
first meeting in June, 2014 and each June thereafter.
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 , 2014.
City of Prior Lake
By:
Mayor
Date:
By:
City Manager
Date:
3
Shakopee Mdewakanton Sioux Community
Chairman
Shakopee Mdewakanton Sioux Community
Date:
4
FIRST RENEWAL OF MEMORANDUM OF UNDERSTANDING
BETWEEN THE SHAKOPEE MDEWAKANTON SIOUX COMMUNITY
AND THE CITY OF PRIOR LAKE
This First Renewal of Memorandum of Understanding is being made by and between the
Governments of the Shakopee Mdewakanton Sioux Community(SMSC or the Tribe), a federally
recognized Indian Tribe, and the City of Prior Lake (City), a municipality organized under the
laws of the State of Minnesota, addressing liquor transactions on the SMSC golf course,
commonly referred to as "The Meadows at Mystic Lake" (The Meadows). The Tribe and the
City shall collectively be referred to as the"Governments".
A. ACKNOWLEDGEMENTS:
WHEREAS, by agreement dated March 18, 2013, the Governments entered into a
Memorandum of Understanding ("MOU") (attached) addressing the sale of intoxicating
liquor at The Meadows for on-site consumption. The Meadows 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;and
WHEREAS, the Governments desire to renew the regulatory plan governing the sale of
intoxicating liquor at The Meadows as set forth in the MOU;and
WHEREAS,the MOU provides that the term of the MOU shall be July 1 to June 30 each
year and that it shall be considered for renewal by the City Council each year together
with other liquor license renewals on or about the first meeting in June;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 and to avoid confusion regarding the regulation of such intoxicating liquor
transactions;and
WHEREAS, all other recitals and provisions of the MOU are reiterated and affirmed as if
fully set forth herein.
NOW THEREFORE BE IT RESOLVED, in recognition of the interests of all citizens and our
responsibilities as Governments, WE DO HEREBY enter into this First Renewal of
Memorandum of Understanding, and in the spirit of cooperation we affix our signatures on this
day of ,2014.
Mayor City Manager
City of Prior Lake City of Prior Lake
Chairman J
Shakopee Mdewakanton Sioux Community
Meadows at .Mystic Lake Fee and Trust Land
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