City of

RE NGCITY COUNCIL AGENDA REPORT

TO: Honorable Mayor and City Council Members

FROM: Roger D. Pohlman, Chief of Police

Agenda Item No.: 80 Approval of Annual Plan Agreement with the Department ofHuman Services for the " Congratulate and Educate" Program.

Meeting Date: April 14, 2014

ACTION REQUESTED: Acceptance and Approval of the 2015 Annual Plan Agreement

with the Minnesota Department of Human Services, allowing for one additional tobaccocompliance check under the " congratulate and educate" program. Approval of this

consent item will also authorize the Chief of Police to sign this one-time agreement

between the Minnesota Department of Human Services and the City of Red Wing PoliceDepartment.

ATTACHMENTS: - Cover Letter and 2015 Annual Plan Agreement.

Congratulate and Educate Program information and materials.

BACKGROUND: The Red Wing Police Department randomly conducts two tobaccocompliance checks per year. In 2014, the Red Wing Police Department participated inthe " Congratulate and Educate Program", which was well received by the vendors. In

2014, seventeen ( 17) businesses were inspected with two ( 2) failures. The clerks that

did not sell to minors received a certificate of appreciation, and the business received a

appreciation letter. The two businesses that failed received additional training and aletter outlining the dangers of selling tobacco to minors.

DISCUSSION: The Minnesota Department of Human Services contacted the Red WingPolice Department to ask if we were interested in participating in the " Congratulate andEducate" program, requiring us to conduct one additional tobacco compliance check. Upon completion of the compliance check, vendors that do not sell tobacco to minors will

receive a certificate of appreciation. Vendors that do sell tobacco to minors will receive

an educational letter in lieu of the normal citation and fine. In return for the Red WingPolice Department participation in this program, the Minnesota Department of Human

Services will pay the Police Department $40 for each vendor checked ( 20 vendors x $40800). This plan focuses on an educational and reward component that will help build

positive relationships between law enforcement and our tobacco vendors.

FUNDING SOURCE(S): Police budget, with reimbursement from the Minnesota

Department of Human Services.

ALTERNATIVES: - Reject the Agreement and only conduct the two annual compliancechecks at our own expense.

STRATEGIC PLAN LINKAGE: Strategy II — Community Connections.

RECOMMENDATION: Accept and approve the 2015 Annual Plan Agreement between

the Minnesota Department of Human Services and the City of Red Wing PoliceDepartment for participation in the " Congratulate and Educate" program and allow the

Chief of Police to sign the one- time agreement.

ifMinnesota Department of Human Services

April 9, 2015

Janelle Ahern

Red Wing Police Department430 W. 6th Street

Red Wing, MN 55066

RE: Congratulate & Educate Annual plan

Dear Ms. Ahern:

This packet contains two cover letters one from Project Manager, Collin Frazier, with a packet of

instructions and forms, and the other letter from me includes an annual plan, which must be signed so we

can pay you.

I have enclosed three ( 3) originals of the Annual Plan Agreement for your signature with an addressedreturn envelope. Please sign all ofthe Annual Plan Agreement originals and return two (2) originals of the

Annual Plan Agreements to me at this office. The third original annual plan you should keep for yourfiles.

Please sign, date and return the two (2) original annual plans to me as soon as possible, to the followingaddress or you may use the enclosed self-addressed enclosed envelope:

DHS/Alcohol & Drug Abuse DivisionAttn: Joan Kaluza

PO Box 64977

Saint Paul, MN 55164- 0977

Since yours is the final signature on this annual plan, you may begin work as soon as you sign the annualplan.

Sincerely,

eel

SJl

Joan Kaluza

Grants & Contracts Manager

Telephone: 651- 431- 2472 FAX: 651- 431- 7449

e- mail: joan.kaluzarsstate. nm.us

cc: Collin Frazier & File

An Equal Opportunity and Veteran -Friendly Employer

T # 15A55

SFY 2015 ANNUAL PLAN AGREEMENTSTATE OF MINNESOTA

DEPARTMENT OF HUMAN SERVICES

I1o.N ci,Caordtn

FinDeptID: H55EB31414SWIFT Encumbrance PO #:

Fill in the FinDeptID number that identifies what account to use for encumbering funds. Your contract

coordinator will encumber funds in SWIFT and write the encumbrance PO # in the box to the right.

L/ 97 7 </ Reference this 10 digit PO # when submitting related invoices to FOD/Accounts Payable for payments to 3 0 0 0this vendor for this service.

Vendor' s Name: Red Wing Police Department

Vendor' s Street Address: 430 W. 6th Street E-mail Address: ] anelle.ahern(a,ci.red-wing.mn.us

City: Red Wing State: MN Zip: 55066 Phone #: 651- 267-2613

For Vendor Using: individual name, supply the vendor' s social security #: a business name, supply the vendor' s federal tax I D #: # 41- 6005482

a business address located in MN, supply the MN. Tax I. D. # also:

so Cost of service must include descriptive rate:

x/hours @ x/dollars per hour = x/ dollars for total deliverables

Compensation: $ 800.00 20 checks @ $40.00 per compliance check) Dates of Service:

Expenses: $ 0_00* April 1, 2015 to June 30, 2015

Total to encumber $ 800.00 ( SFY15 ends June 30, 2015)

see http://www.mmd.admin.state.mn.us/ commissionersplan. htm for rates)

Provide a detailed description of expected duties on the following page. There are two Information Privacyclauses available on this form. ( See VII.) Choose the appropriate Information Privacy clause that applies to thevendor' s access to DHS client information while performing this service. Delete the other clause under VII thatdoes not apply. Originator' s Name: Joan Kaluza Division Name + Mail code: Alcohol & Drug Abuse Division. 651- 431- 2472

I). Human Services Division Director Ink Signature Please

Your signature gives approval to encumber funds f

and approval of the selected Information Privacy 3 TProvision under Clause VII on this form. NE Vlb D E

2). Contract Coordinator Intek Signat e P easejSFY15 Master APK%78626 Verification $ 5000 limitof

UNSPSC Code: Account code:

SWIFT Vendor#: 0000195422 NAME DATE

IIMBEh13Y CO13'1'RACT C000NA,TbRYP3YY,DDiECTOR HASS Ep 1& Y',SIGN _u A.nAvE

3). Vendor' s Signature Ink Signature Please

By signing, vendor certifies he/ she is not a State employee. Individual signing must have proofof authority to sign onbehalfof the company named above.

NAME DATE

By written acceptance with the signature in Section 3). Vendor' s Signature box, the Vendor agrees to perform the following work/servicesme terms ana commons nsreu oeiow:

Vendor' s Duties: The vendor who is the participating Sheriff, Police or Public Health Departments willconduct educational tobacco compliance checks with the approved number of retailers. All compliancechecks will be conducted in compliance with MN Statute 461. 12 subd 5. Note this educational tobaccocompliance check does NOT fulfill the requirements of 461. 12 subd 5 that a licensing authority shall conductunannounced compliance checks at least once each calendar year because these checks are educational based

and do NOT include a penalty.

Vendor Will:

1. Complete twenty (20) educational tobacco compliance checks by June 30, 2015. Checks will bereimbursed at $ 40 per check.

2. Ensure that no penalty is levied on the clerk or the business owner from the county or city as a result ofthese educational tobacco compliance checks.

3. Provide clerks who fail the educational tobacco compliance check an educational publication which will

be reviewed with them by the individual who conducted the compliance check.

4. Provide clerks who pass the educational tobacco compliance check a certificate of appreciation signed bythe organization conduction the checks.

5. Provide the owner of the establishment a publication including the date the check was conducted and theresults of the inspection (pass or fail).

6. Complete a short survey and the vendor invoice form and email both to collinfrazier cr state.mn. us forpayment by July 15, 2015.

I. Scope of Agreement: This document is an Agreement for professional/ technical services, to be interpretedpursuant to laws ofthe State of Minnesota. The Commissioner of the Department of Human Services orhis/her delegate (hereinafter the STATE), pursuant to Minnesota Statutes, section 256.01, subd. 2 isempowered to enter into professional/ technical agreements. The Commissioner has identified the need forthe services to be performed, as no state employee is available or capable ofperforming these tasks. Nowork on this agreement is to begin until the STATE has signed this document and VENDOR is

notified to begin work by the STATE' s authorized representative. By written acceptance, theVENDOR agrees to perform the scope of the services within the terms and conditions in this agreement andwithin the limits of the clauses specified in this agreement. The VENDOR must sign its approval in thedesignated signature block and return the original signed Agreement and any attachments to the Departmentof Human Services, prior to the commencement of services.

H. Conditions ofPayment: All services provided by the VENDOR pursuant to this Annual Plan Agreementmust be performed to the satisfaction of the State, as determined in the sole discretion of the State, and not

in violation of any federal, state or local laws, ordinances, rules and regulations. The VENDOR will notreceive payment for work found by the State to be unsatisfactory, or performed in violation of federal, stateor local law, ordinance, rule or regulation. Under Minnesota Statutes Section 16C. 08, subdivision 5( b), nomore than 90 percent of the amount due under this Annual Plan Agreement may be paid until the finalproduct of this Annual Plan Agreement has been reviewed by the State' s agency head. The balance duewill be paid when the State' s agency head determines that the VENDOR has satisfactorily fulfilled all theterms of this Annual Plan Agreement.

III. Consideration and Terms of Payment: Payments shall be made by the STATE promptly afterVENDOR' s presentation of invoices for services performed and acceptance of such services as satisfactory

by the STATE' s authorized representative. VENDOR will be reimbursed for travel and subsistenceexpenses in the same manner and in no greater amount than is provided in the current

Commissioner' s Plan", promulgated by the Commissioner of Minnesota Management and Budget,

which is incorporated by reference. VENDOR will not be reimbursed for travel and subsistenceexpense incurred outside the State of Minnesota unless it has received STATE' S prior written

approval for such out of state travel. Minnesota will be considered the home state for determiningwhether travel is out of state. For compensation payable under this agreement, which is subject to

withholding under state or federal law, appropriate amounts will be deducted and withheld by the State asrequired.

IV. Cancellation. This Annual Plan Agreement may be canceled by the State or the Commissioner ofAdministration at any time, with or without cause, upon 30 days' written notice to the Vendor. In the eventof such a cancellation, the Vendor will be entitled to payment, determined on a pro rata basis, for the work

or services satisfactorily performed.

V. Indemnification. In the performance of this agreement by VENDOR, or VENDOR' S agents oremployees, the VENDOR must

indemnify, save, and hold harmless the STATE, its agents, and employees, from any claims or causes ofaction, including attorney' s fees incurred by the STATE, to the extent caused by VENDOR' S:

1) Intentional, willful, or negligent acts or omissions; or

2) Actions that give rise to strict liability; or3) Breach of contract or warranty.

The indemnification obligations of this section do not apply in the event the claim or cause of action isthe result of the STATE' S sole negligence. This clause will not be construed to bar any legal remediesthe VENDOR may have for the STATE' S failure to fulfill its obligation under this agreement."

VI. State Audit: Under Minn. Stat. § 16C. 05, subd. 5, the books, records, documents, and accountingprocedures and practices of the VENDOR and its employees, agents, subcontractors, or representatives,

relevant to this agreement must be made available and subject to examination by the State, including thecontracting Agency/Division, Legislative Auditor, and State Auditor, for a minimum of six years from theagreement.

VII. Information Privacy Protection: The VENDOR and STATE must comply with the MinnesotaGovernment Data Practices Act, Minn. Stat., ch. 13, and the Health Insurance Portability AccountabilityAct ["HIPAA"], 45 C.F.R. § 164. 103, et seq., as it applies to all data provided by the STATE under thiscontract, and as it applies to all data created, collected, received, stored, used, maintained, or disseminated

by the VENDOR under this contract. The civil remedies of Minn. Stat. § 13. 08 apply to the release of thedata governed by the Minnesota Government Practices Act, Minn. Stat. ch. 13, by either the VENDOR orthe STATE. Additionally, the remedies of HIPAA apply to the release of data governed by that Act.

If the VENDOR receives a request to release the data referred to in this clause, the VENDOR must

immediately notify and consult with the STATE' s Authorized Representative as to how the VENDORshould respond to the request. The VENDOR' s response to the request shall comply with applicable law.

It is expressly agreed that the VENDOR will not be handling private data collected by STATE and istherefore not a member of or included within the " welfare system" for purposes of the MinnesotaGovernment Data Practices Act (hereinafter " Data Practices Act," Minnesota Statutes, Chapter 13, and in

particular § 13. 46) as a result of this contract. It is also expressly agreed that VENDOR will not behandling " protected health information" collected by STATE ( information that identifies an individual ashaving applied for, being or having been eligible for, or receiving or having received health care services, as set forth in 45 CFR § 160. 102). VENDOR is not a " business associate" of STATE, as defined in the

Health Insurance Portability Accountability Act (" HIPAA"), 45 CFR § 160. 103 as a result of or in

connection with this contract. Therefore, VENDOR is not required to comply with the privacy provisionsof HIPAA as a result of or for purposes of performing under this contract. If VENDOR has responsibilitiesto comply with the Data Practices Act or HIPAA for reasons other than this contract, VENDOR will beresponsible for its own compliance.

VIII. Ownership of Works and Intellectual Property Rights. Except in the case of intellectual propertyrights previously acquired by VENDOR, the STATE owns all rights, title, and interest in all of the

intellectual property, including copyrights, patents, trade secrets, trademarks, and service marks in theWorks and Documents created andpaidfor under this agreement. The Works and Documents will be the

exclusive property of the STATE and all such Works and Documents must be immediately returned to theSTATE by the VENDOR upon completion or cancellation of this agreement. Works means all inventions, improvements, discoveries ( whether or not patentable or copyrightable), databases, computer programs,

reports, notes, studies, photographs, negatives, designs, drawings, specifications, materials, tapes, and

disks conceived, reduced to practice, created or originated by the VENDOR, its employees, agents, andsubVENDORs, either individually or jointly with others in the performance of this agreement. Worksincludes " Documents. " Documents are the originals of any databases, computer programs, reports, notes, studies, photographs, negatives, designs, drawings, specifications, materials, tapes, disks, or other

materials, whether in tangible or electronic forms, prepared by the VENDOR, its employees, agents, orsubVENDORs, in the performance of this agreement.

IX. Data Disclosure: Under Minn. Stat. § 270. 66, and other applicable law, the VENDOR consents to

disclosure of its social security number, federal employer tax identification number, and/or Minnesota taxidentification number, already provided to the State, to federal and state agencies and state personnelinvolved in the payment of state obligations. These identification numbers may be used in the enforce- ment of federal and state laws which could result in action requiring the VENDOR to file state tax returns,

pay delinquent state tax liabilities, if any, or pay other state liabilities. This contract will not beapproved unless these numbers are provided.

X. Jurisdiction and Venue: This Annual Plan Agreement is governed by the laws of the State of Minnesota. Venue for all legal proceedings arising out of this Annual Plan Agreement, or breach thereof, will be in thestate or federal court with competent jurisdiction in Ramsey County, Minnesota.

XI. Prohibition on Weapons. VENDOR agrees to comply with all terms of the Department of HumanServices' policy prohibiting carrying or possessing weapons wherever and whenever the VENDOR isperforming services within the scope of this agreement. Any violations of this policy by VENDOR orVENDOR's employees may be grounds for immediate suspension or termination of the agreement. Currently Licensed Peace Officers are exempt from this provision. If Police or Sheriff Departmentsutilize officers who carry or possess weapons, as defined in Minnesota Statutes, section 626.05, subdivision 2, for performing services within the scope of this agreement, then these Departments shallutilize only its active and currently licensed peace officers.

XII. Criminal Background Check Required. VENDOR and employees of VENDOR working on site atSTATE' s Central Office and accessing STATE' s protected information (as defined in VII. InformationPrivacy Protection of this agreement.) must submit to or provide evidence of a computerized criminalhistory system background check (hereinafter " CCH background check") performed within the last 12months before work can begin under this agreement. " CCH background check" is defined as a

background check including search of the computerized criminal history system of the MinnesotaDepartment of Public Safety's Bureau of Criminal Apprehension.

XIII. Federal Audit Requirements and Vendor Debarment Information.

A. Compliance with Single Audit Act. All sub -recipients receiving $ 500,000 or more of federalassistance in a fiscal year will obtain a financial and compliance audit made in accordance with the

Single Audit Act, OMB Circular A- 133. VENDOR certifies it will comply with the Single Audit Act, OMB Circular A- 133, if applicable. Failure to comply with these requirements could result inforfeiture of federal funds.

B. Vendor debarment, suspension and responsibility certification. Federal Regulation 45 CFR 92.35prohibits the STATE from purchasing goods or services with federal money from vendors who havebeen suspended or debarred by the federal government. Similarly, Minn. Stat. § 16C.03, subd. 2provides the Commissioner of Administration with the authority to debar and suspend vendors whoseek to contract with the State.

BY SIGNING THIS ANNUAL PLAN, VENDOR CERTIFIES THAT IT AND ITS PRINCIPALS:

a) Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarilyexcluded from transacting business by or with any federal, state or local governmental department oragency; and

b) Have not within a three-year period preceding this Agreement: a) been convicted of or had a civiljudgment rendered against them for commission of fraud or a criminal offense in connection with

obtaining, attempting to obtain or performing a public ( federal, state or local) transaction or contract; b) violated any federal or state antitrust statutes; or c) committed embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements or receiving stolen property; and

c) Are not presently indicted or otherwise criminally or civilly charged by a governmental entity for: a) commission of fraud or a criminal offense in connection with obtaining, attempting to obtain orperforming a public ( federal, state or local) transaction; b) violating any federal or state antitruststatutes; or c) committing embezzlement, theft, forgery, bribery, falsification or destruction ofrecords, making false statements or receiving stolen property; and

d) Are not aware of any information and possess no knowledge that any subcontractor( s) that willperform work pursuant to this agreement are in violation of any of the certifications set forth above.

e) Will immediately give written notice to the STATE should VENDOR come under investigation forallegations of fraud or a criminal offense in connection with obtaining, attempting to obtain, orperforming; a public ( federal, state or local government) transaction; violating any federal or stateantitrust statutes; or committing embezzlement, theft, forgery, bribery, falsification or destruction ofrecords, making false statements or receiving stolen property.

END

BUSINESS OWNER

Minnesota Congratulate & Educate Project

Helping to Restrict Youth Access to Tobacco

WHAT IS THE MINNESOTA CONGRATULATE & EDUCATE PROJECT?

The Minnesota Department of Human Services, Alcohol and Drug Abuse Division is funding Sheriff

Departments, Police Departments and County Public Health Agencies to conduct unannounced educational

tobacco compliance checks. Checks will be educational -based and no sanctions should be incurredfrom

the State, County or City. The goal of educational compliance checks is both to congratulate clerks whopass the compliance check (do NOT sell tobacco to the minor) and to provide education on: ( 1) the law,

2) what compliance checks are, (3) why compliance checks are important, (4) possible penalties to clerks

AND owners if a clerk sells tobacco to someone under 18. This project encourages and supports community

policing whereby local law enforcement and the community work together to restrict youth access to

tobacco.

Here are the results of the educational tobacco compliance check conducted at your business:

On at o' clock AM / PM

Your clerk PASSED / FAILED an educational tobacco compliance check conducted by

Officer/ Agent:

Department:

at the following location:

Created March 2015

NEXT STEPS

If your clerk failed the educational compliance check, it is critical you re- train yourentire staff on the proper steps to take when selling tobacco products. If your clerk

passed the educational compliance check, please congratulate them. Finally, consider

re-training all of your staff if they have not been trained recently.

STEPS TO REVIEW WITH YOUR STAFF:

Do NOT sell or furnish tobacco, tobacco -related devices (such as pipes or rolling

papers), electronic delivery devices, ( such as e -cigarettes), or nicotine or lobeliadelivery products to any person who is under the age of 18. Check an acceptable form of photo ID of everyone appearing under age 27 whoattempts to purchase cigarettes, cigarette tobacco or smokeless tobacco. Your

employer may have a stricter policy such as requiring you to check everyone' s IDno matter what age they appear. Your employer may also require you to check IDprior to the sale of all tobacco, or tobacco/ nicotine/ lobelia related devices orproducts.

Do NOT sell single cigarettes (often called `loosies") to anyone.

Do NOT give away free samples of cigarettes to anyone. Do NOT sell any tobacco products, tobacco -related devices, electronic deliverydevices, or nicotine or lobelia delivery products from a self-service display orvending machine if anyone under the age of 18 is permitted to enter theestablishment at any time.

WHAT COULD HAPPEN IF MY CLERK SELLS TO SOMEONE UNDER 18?

State law dictates that owners have to pay $75 for the first offense, $ 200 for asecond offense occuring within 24 months of the first, and $250 plus a mandatory7 day license suspension for a third offense occurring within 24 months of thefirst. The city or county can adopt a higher penalty structure.

FDA penalties range from a warning letter for the first offense to a $ 11,000 fine forthe 6th or subsequent violation within a 48 month period. A no tobacco sale order

may also be issued if there are at least 5 violations over a 36 month period.

If you have questions please contact Collin Frazier, Tobacco Prevention and Control Supervisor, Minnesota Department of Human Services —Alcohol and Drug Abuse Division at 651- 431-2341

or Katie Engman at The Association for Nonsmokers -Minnesota at 651- 646-3005.

2. OIQ

w

o

WHAT DOES

MINNESOTA LAW SAY

ABOUT SELLING

Minnesota Congratulate & Educate Project

Helping to Restrict Youth Access to Tobacco

You FAILED an Educational Tobacco

Compliance Check

WHAT DOES THIS MEAN?

It means you sold tobacco, an e -cigarette, or other related product to

someone under the age of 18, which is against the law. Fortunately for you, this is an educational compliance check which means you won' t be getting afine or face a criminal penalty THIS TIME. Think of this as an opportunity tobrush up on the law and what you need to do to avoid selling to anyone underthe age of 18. You may still face a consequence from your employer - that isup to them.

TOBACCO TO YOUTH? HOW DO TOBACCO COMPLIANCE CHECILS WORK?

The most important thing to understand is that whether a compliance check

It is illegal to sell or furnish is conducted by the County, City, or the FDA, the minors should NOT try totrick you into selling to them. Fake ID' s should NOT be used and minors

tobacco or tobacco -related should NOT lie.

devices (such as pipes or

rolling papers), electronicWHAT COULD HAPPEN IF I SELL TO SOMEONE UNDER 18?

Any person who sells to a minor may:

delivery devices (such as e- Have to pay a $5o.00 Administrative fee ( some cities/ counties maycharge more).

cigarettes), or nicotine or Be found guilty of a misdemeanor which is punishable by up to 90

lobelia delivery products to days in jail and/ or up to a $r>000 fine for the first violation. Be found guilty of a gross misdemeanor which is punishable by up to

any person who is under the a year in jail and/ or up to a S3, 000 fine for any additional

age of 18. FDA approvedviolations within 5 years of a previous conviction.

Face re-training/ discipline/ or be fired from his or her job. tobacco cessation products

are exempt. This is commonly STEPS TO FOLLOW:

referred to as Minnesota'sDo NOT sell or furnish tobacco, tobacco -related devices ( such as

pipes or rolling papers), electronic delivery devices ( such as e - Youth Access Law. MNStatute cigarettes) or nicotine or lobelia delivery products to any person who

is under the age of 18.

609.685-.6855. 0 Check an acceptable form of photo ID of everyone appearing underage 27 who attempts to purchase cigarettes, cigarette tobacco or

smokeless tobacco. Your employer may have a stricter policy such asrequiring you to check everyone' s ID no matter what age they appear. Your employer may also require you to check ID prior to the sale ofall tobacco, or tobacco/ nicotine/ lobelia related devices or products.

Do NOT sell single cigarettes (often called " loosies").

Do NOT give away free samples of cigarettes. Do NOT sell tobacco products, tobacco -related devices, electronic

delivery devices, or nicotine or lobelia delivery products from a self- service display or vending machine if anyone under the age of 18 ispermitted to enter the establishment at any time.

Crtated March 201 S