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Home My WebLink About5E 2nd Renewal of MOU SMSC Liquor Sales at Meadows 01 PR-104? ti U 1714646 Dakota Street SE Prior Lake, MN 55372 4fINNEsO1P CITY COUNCIL AGENDA REPORT MEETING DATE: JUNE 8, 2015 AGENDA#: 5E PREPARED BY: FRANK BOYLES, CITY MANAGER PRESENTED BY: FRANK BOYLES, CITY MANAGER AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING APPROVAL OF A SECOND RENEWAL OF MEMO OF UNDERSTANDING (MOU) WITH THE SMSC FOR LIQUOR SALES ON THE MEADOWS AT MYSTIC LAKE DISCUSSION: Introduction This agenda item requests City Council consideration of a Second Renewal 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. The SMSC has added alco- holic 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. 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 for a second time. 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 has insurance and the MOU provides a hold harmless for the City and an indemnification agreement as well. The second MOA renewal is for one year and would be considered together with other license renewals in June 2016. The Police Chief reports that over the last year there have been no incidents reported with respect to the 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 to adopt a resolution approving the Second Renewal of 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: p10Q4, U � 4646 Dakota Street SE `ylivN,sotP Prior Lake, MN 55372 RESOLUTION 15-xxx A RESOLUTION AUTHORIZING APPROVAL OF A SECOND RENEWAL OF A MEMO OF UNDERSTANDING (MOU)WITH THE SHAKOPEE MDEWAKANTON SIOUX COMMUNITY (SMSC) FOR LIQUOR SALES ON THE MEADOWS AT MYSTIC LAKE 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 at Meadows on Mystic; and WHEREAS, both parties believe that the agreement affords protections to all parties, and 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 second renewal of the Memorandum of Understanding dated March 18, 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 xxth DAY OF xxx 2015. VOTE Hedberg Keeney McGuire Morton Thompson Aye E ❑ ❑ E E Nay ❑ ❑ ❑ ❑ ❑ Abstain ❑ ❑ ❑ ❑ ❑ Absent ❑ ❑ ❑ ❑ ❑ Frank Boyles, City Manager SECOND RENEWAL OF MEMORANDUM OF UNDERSTANDING BETWEEN THE SHAKOPEE MDEWAKANTON SIOUX COMMUNITY AND THE CITY OF PRIOR LAKE This Second 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 Second Renewal of Memorandum of Understanding, and in the spirit of cooperation we affix our signatures on this C04' day of Mar ,2015. Mayor City Manager City of Prior Lake City of Prior Lake Chairman Shakopee Mdewakanton Sioux Community 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 Depattinent 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("ATP")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 cheeks 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 / 1. _ 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. Thereafter the term of the MOU shall be July 1 to June 30 each year. The MOU shall be considered for renewal for a term of July 1 to June 30 by the city council each year together with other liquor license renewals on or about the first meeting in June. 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 /FA day of Narc'4 , 2013. ,- _,,---et,, M lyor City of Prior Lake V ; Ilif City Mana,-r City of ' for La e Chairman f Shakopee Mdewakanton Sioux Community i 3 , ,,, .,,,,,,,-,1 , . ,0,,,m, k , : .. , -,-, .,. - i,pi,r. -.., :,--,,,,-. .,.,.....-..- i4:'-:N. ?!...0"''--' ....I rs- '?'-,: " -^ 1- ''' .' il' 4 r 1A.:,,4:,' i` •a ` s 1 , 41, .�, .' MEADOWS GOLF COURSE � .0 i.i,li. 01� , ;;; ..:4`,,. L8f1C�$tatus � T• d+ f mow•' '- ,`Q,- 5 .. r �' ` 0 4`f: :To •'''',...,":-'-.:k--,, -;" --: . . ''.1.7:::411. '-X \._. 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