City of Big Stone City Council Proceedings • September 7, 2022

Published by admin on Fri, 09/16/2022 - 6:54am

September 7, 2022

6:30 p.m.

The Big Stone City council met in regular session on Wednesday, September 7, 2022. Meeting began at 6:30 p.m. with Mayor Athey presiding. Roll Call: Rabe, Brown, Redfield, Roscoe and Zahnow. Absent: Stoddard. Others present: Teresa Goergen, Teri Spors, Earl Lundin, Sherrie Borud, Sue Christensen, Faye Athey, Phyllis Lieb, Randy Stock, Julie Enstad, Robin Tietjen, Janet Athey, John McFarland, Kris Redfield, Vicky Torgerson, Arvene VanHout, Phyllis Gruenwald, Deb Wiik, Gene Biever, Susan Westermeyer, Bob Zahnow, Mike Hughes, Gloria Arndt, Kristen Lubben, Chad Lubben, Larry Schmidt, Glenda Loeschke, Linda Raddatz, Brad Hanson, Pat Kaiser, Nate Harmening, Bob Athey, Bryan Austin, Redgey Rademacher, Nancy Lee and Kelsey Stock.

The Pledge of Allegiance and the South Dakota State Pledge were recited.

Motion to accept the minutes from August 1, 2022 regular meeting was made by Brown and seconded by Zahnow. All in favor. Motion Carried.

Motion to pay the presented claims was made by Rabe and seconded by Redfield. Upon Roll call Ayes: Redfield, Zahnow, Roscoe, Rabe and Brown. Nayes: None. Absent: Stoddard. Motion Carried.

The following claims were presented for payment.

Wiese Electric $123.43; Grant County Auditor $7,500.00; Ultieg Engineering $206.00; Northwestern Energy $163.24;

Grant County Review $51.62; Waste Management-July $5,495.92; InfoTech $1,425.00; Fluegel Anderson $1,691.38;

Advanced Technologies $1,671.18; Nelson Electric, Inc. $91.47; KDIO $220.00; Harrys Frozen Foods $509.00; Porter Distribution $626.40; Big Stone Area Hardware $219.33; Ellwein Brothers $6,798.30; Quill Corporation $102.93; Just Ice $52.50; Southern Glazers $759.05; Border States Industries $249.84; Missouri River Energy $1,439.50; Twin Valley Tire $48.50; Xerox Corporation $21.97; Daves Construction $60,180.72; Valley Office Products $120.16; Wildung Implement $242.15; Linda Hoberg $1,003.80; Coca-Cola Bottling $140.50; Johnson Bros Famous $1,685.22; Tom Berger $300.00; Health Pool of SD $8,026.05; Ellwein Brothers $3,656.30; Porter Distribution $264.25; Robert Athey $168.00; Big Stone County Auditor $2,369.00; Pepsi Cola $240.21; Johnson Bros Famous $2,073.18; First District Association $625.00; Twin Valley Tire $120.00; Brewsters Building $21.18; South Dakota 811 $ 40.32; SD Department of Labor $18.13; Midwest Irrigation $424.27; Sturdevants $819.01; Midco Business $167.81; Runnings Supply $533.52; VISA $782.11; City of Big Stone $4,742.70; Republic Beverage Co. $792.40; Farner Brocken Co $1,249.66; Verizon Wireless $154.28; Grant Roberts Rural $11,479.25; MacDaddy’s $ 1,281.64; Cintas Corporation $101.25; SD Government FO $75.00; Postmaster $ 104.00; Ortonville Independent $504.00; MacDaddy’s $861.69; Dakota Fluid Power $2,229.27; Midco Business $167.81; Valley Shopper $757.30; Harrys Frozen Foods $415.00; Jim Dandy Snack Foods $90.00; Porter Distribution $247.40; Ellwein Brothers $2,421.75; CHS, Inc. $1,729.83; Republic Beverage Co. $654.70; Brewsters Distribution $30.25; Grant County Review $ 221.61; United States Treasury $418.52; RESCO $13,433.00; Redgey Rademacher $357.11; Waste Management-Aug $5,394.00; Cintas Corporation $94.39; Fluegel Anderson $856.50;

Principal Life $75.02; SD Retirement $3,417.90; AFLAC $291.58; Overhead Door Company $3,797.46; Silver Springs, LLC $588.29; KDIO $100.00; IRS $4,518.83; SD Dept. of Revenue $2,867.88; Postmaster, $161.04; IRS $3,808.71; SD Dept. of Revenue $5,248.20; Payroll $14,069.79; Payroll $12,189.30

Motion was made by Brown to hire Pat Kaiser as part-time Office Assistant for up to 24 hours per week and with her experience pay will be at $18.00 an hour motion seconded by Rabe. Upon Roll call: Ayes: Roscoe, Rabe, Redfield, Brown and Zahnow. Nayes: None. Absent: Stoddard. Motion Carried.

Mayor Athey read the Sheriff’s report as provided: Hours worked within the city: 99 hours, subject to call 24 hours per day. 1 vandalism call, 2 suspicious activity calls, 2 welfare checks, assisted with a fire call, received 4 business alarm calls, 3 traffic complaints and 2 criminal investigations.

Public comments and discussions were held regarding the Community Center. For clarification that nothing has been changed in renting the community center. Motion made by Rabe and seconded by Zahnow that Big Stone City nonprofit organizations (listing is in the City Office) will still have the use of the Community Room free of charge and all others renting the community center the fee will stay the same at $100.00 per day with a $100.00 security deposit due at the time of rental. Security Deposit will be refunded if center is left as it was when rented. Upon Roll call: Ayes: Redfield, Brown, Rabe, Roscoe and Zahnow. Nayes: None. Absent: Stoddard. Motion Carried.

A Public question was asked about the sizes and styles of buildings being built in the City of Big Stone and if an ordinance states this. Planning and Zoning will be looking into this.

Rabe made a motion to approve the Ordinance Creating Licensing Provisions For Cannabis Establishments and was seconded by Redfield. Upon Roll call Ayes: Zahnow, Rabe, Redfield, Roscoe, Brown. Nayes: None. Absent: Stoddard. Motion Carried

1st Reading: 4-4-22

2nd Reading: 5-2-22

Date Adopted: 9-7-22

ORDINANCE NO.

BE IT ORDAINED by the City Council of the City of Big Stone City, South Dakota, that the Ordinances of the City of Big Stone City, South Dakota, be amended by CREATING LICENSING PROVISIONS FOR CANNABIS ESTABLISHMENTS

An ORDINANCE CREATING LICENSING PROVISIONS FOR CANNABIS ESTABLISHMENTS

Be It Ordained by the City Council of the City of Big Stone City that the Ordinances of the City of Big Stone City are hereby amended by adding new Chapter 152 as follows:

CANNABIS ESTABLISHMENTS

01: PURPOSE AND INTENT

The City Council of the City of Big Stone City enacts the following licensing ordinances in order to ensure that cannabis establishments within the municipal boundaries of the City operate in a manner which complies with state laws and regulations, protects the health, safety, and welfare of the general public, prevents potential conflicts and issues arising from ownership and employees, recognizes certain safety and security considerations, and minimizes risk of unauthorized use or access of cannabis by the general public.

02: DEFINITIONS

Unless an alternative definition is explicitly stated in this section, this chapter utilizes the definitions for cannabis-related terms which are defined by SDCL 34-20G-1.

Cannabis (or Marijuana): all parts of any plant of the genus cannabis, whether growing or not, in its natural and unaltered state, except for drying or curing and crushing or crumbling. The term includes an altered state of marijuana absorbed into the human body. The term does not include fiber produced from the mature stalks of such plant, or oil or cake made from the seeds of such plant. The term does not include the plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than three-tenths of one percent on a dry weight basis.

Cannabis Cultivation Facility: in addition to the definition in SDCL 34-20G-1, this term is further defined as a legally licensed entity that acquires, possesses, cultivates, delivers, transfers, transports, supplies, or sells cannabis and related supplies to a cannabis establishment.

Cannabis Dispensary: in addition to the definition in SDCL 34-20G-1, this term is further defined as a legally licensed entity that acquires, possesses, stores, delivers, transfers, transports, sells, supplies, or dispenses cannabis, cannabis products, paraphernalia, or related supplies and educational materials.

Cannabis Establishment: cannabis cultivation facility, a cannabis testing facility, a cannabis product manufacturing facility, or a cannabis dispensary.

Cannabis Product Manufacturing Facility: in addition to the definition in SDCL 34-20G-1, this term is further defined as a legally licensed entity that acquires, possesses, manufactures, delivers, transfers, transports, supplies, or sells cannabis products to a cannabis dispensary.

Cannabis Products: any concentrated cannabis, cannabis extracts, and products that are infused with cannabis or an extract thereof, and are intended for use or consumption by humans. The term includes edible cannabis products, beverages, topical products, ointments, oils, and tinctures

Cannabis Testing Facility: in addition to the definition in SDCL 34-20G-1, this term is further defined as a legally licensed entity legally authorized to analyze the safety and potency of cannabis.

Department: the South Dakota Department of Health

03: LICENSE AND CERTIFICATION REQUIRED

(a) A cannabis establishment shall not operate or locate in the city without a cannabis establishment license issued by the city. A violation of this provision is subject to the general penalty provision of Section 16. Each day of the violation constitutes a separate offense.

(b) A cannabis establishment shall not operate or locate in the city without a cannabis establishment registration certificate issued by the Department. A violation of this provision is subject to the general penalty provision of Section 16. Each day of the violation constitutes a separate offense.

04: LICENSE APPLICATION

(a) An application for a cannabis establishment license must be made on a form provided by the city. No other application form will be considered.

(b) The applicant must submit the following:

1. A non refundable

Application fee of ONE

THOUSAND AND NO/100

DOLLARS ($1,000.00).

2. An application that will

include, but is not limited to,

the following:

i. The legal name of the

prospective cannabis

establishment;

ii. The physical address of the

prospective cannabis

establishment that meets the

zoning requirements C-2

Commercial, as well as any

location requirements

pursuant SDCL 34-20G and

the administrative rules

promulgated thereunder.

iii. The name, address, and

birth date of each principal

officer, owner, and board

member of the proposed

cannabis establishment.

iv. A sworn statement that no

principal officer, owner, or

board member has been

convicted of a violent felony

offense in the previous ten

(10) years in any jurisdiction.

v. Any additional

information requested by the city.

05: ISSUANCE OF LICENSE

(a) The city will issue a license unless:

1. The applicant has made a false

statement on the application or

submits false records or

documentation; or

2. Any owners, principal officer, or

board member of the applicant is

under the age of twenty-one (21)

years; or

3. Any owner, principal officer, or

board member of the applicant has been convicted of a violent felony

offense in the previous ten (10) years in any jurisdiction;

4. The proposed location does not

meet the applicable zoning

requirements for C-2 Commercial;

5. The proposed location does not

meet all location requirements

under SDCL 34-20G and the

administrative rules promulgated

thereunder;

6. The license is to be used for a

business prohibited by state or local

law, statute, rule, ordinance, or

regulation;

7. Any owner, principal officer, or

board member of the applicant has

had a cannabis establishment

license revoked by the city or a

registration certificate revoked by

the state;

8. An applicant, or an owner,

principal officer, or board member

thereof, is overdue in payment to

the city of taxes, fees, fines, or

penalties assessed against or

imposed upon the applicant in

relation to any cannabis

establishment; or

9. The applicant will not be

operating the business for which

the license would be issued.

(b) In the case of an application for a cannabis dispensary license, the city will reject the application if the limit on the number of cannabis dispensaries has been reached.

(c) The license must be posted in a conspicuous place at or near the entrance to the cannabis establishment so that it may be easily read at any time.

06: CITY NEUTRALITY AS TO APPLICANTS

(a) Upon request from the Department as to the City’s preference of applicants, the City will neither support nor oppose any registration certificate application under consideration by the Department. Likewise, if inquiry is made by the Department, the City will abstain from endorsing any application as beneficial to the community.

07: NUMBER OF CANNABIS DISPENSARIES/ESTABLISHMENTS

(a) No more than Six (6) cannabis dispensaries shall be allowed to operate in the City at any time.

(b) No more than Six (6) cannabis cultivation establishments shall be allowed in the City at any time. (c) No more than Six (6) cannabis manufacturing establishments shall be allowed in the City at any time. (d) No more than Six (6) cannabis testing establishments shall be allowed in the City at any time.

08: EXPIRATION OF LICENSE AND RENEWAL

(a) Each license expires one year from the date of issuance and may be renewed only by making application as provided in Section 04. Application for renewal must be submitted at least thirty (30) days before the expiration date. The license holder must continue to meet the license requirements to be eligible for a renewal.

(b) The renewal fee is nonrefundable fee of ONE THOUSAND AND NO/100 DOLLARS ($1,000.00).

(c) Failure to renew a license in accordance with this section may result in additional fees. Upon expiration of the license, the city may order closure of the cannabis establishment.

(d) If a license holder has not operated an establishment for which it holds a license in the preceding twelve (12) months, the license will not be renewed.

09: SUSPENSION

(a) A license may be suspended if the license holder or an employee or agent of the license holder:

1. Violates or is otherwise not in

compliance with any section of this

ordinance.

2. Consumes or smokes or allows

any person to consume or smoke

cannabis on the premises of the

cannabis establishment.

3. Knowingly dispenses or provides

cannabis or cannabis products to

an individual or business to whom

it is unlawful to provide cannabis or

cannabis products.

(b) A license may be suspended if the license holder has its Department-issued registration certificate suspended, revoked, or not renewed by the Department or if the registration certificate is expired. (c) A license may be suspended if the license holder creates or allows to be created a public nuisance at the cannabis establishment.

10: REVOCATION

(a) A license may be revoked if the license is suspended under Section 10 and the cause for the suspension is not remedied.

(b) A license may be revoked if the license is subject to suspension under Section XX.10 because of a violation outlined in that section and the license has been previously suspended in the preceding 24 months.

1. Gave false or misleading

information in the material

submitted during the application

process;

2. Knowingly allowed possession,

use, or sale of non-cannabis

controlled substances on the

premises;

3. Operated the cannabis

establishment or the business of the

cannabis establishment for which a

license is required under this article

while the license was suspended;

4. Repeated violations of Section 11;

5. Operated a function of a cannabis

establishment for which the license

holder was not licensed (e.g., a

licensed cannabis cultivation

facility conducting cannabis testing

functions without a cannabis

testing establishment license);

6. A license holder, or an owner,

principal officer, or board member

thereof, is delinquent in payment to

the city, county, or state for any

taxes or fees related to the cannabis

establishment;

7. A license holder, or an owner,

principal officers, or board member

thereof, has been convicted of, or

continues to employ an employee

who has been convicted of, a

disqualifying felony offense as

defined by SDCL 34-20G; or

8. The license holder has its

Department-issued registration

certificate suspended, revoked, or

not renewed or the registration

certificate is expired.

9. The license holder allows a public

nuisance to continue after notice

from the City.

11. SUSPENSION AND REVOCATION PROCESS

(a) The license holder will receive a notice of intent to suspend or notice of intent to revoke informing the license holder of the violation and the city’s intention to suspend or revoke the license. The notice will be hand delivered to the license holder or an employee or agent of the license holder or sent by certified mail, return receipt requested to the physical address of the cannabis establishment.

(b) If the license holder disputes the suspension or revocation, the license holder has ten (10) days from the postmark date on the notice or the date the notice was hand delivered to request a hearing before a hearing panel, which will consist of the Mayor, Finance Officer, and not less than one (1) member of the City Council.

(c) A suspension will be for thirty (30) days and begins ten (10) days after the postmark date on the notice or the date the notice is hand delivered unless the license holder exercises its rights to process and appeal, in which case the suspension takes effect upon the final determination of suspension.

(d) A revocation will be for one (1) year and begins ten (10) days after the postmark date on the notice or the date the notice is hand delivered unless the license holder appeals the revocation, in which case the revocation takes effect upon the final determination of revocation.

(e) The license holder who has had the license revoked may not be issued any cannabis establishment license for one year from the date the revocation became effective.

12: APPEAL

An applicant or license holder who has been denied a license or renewal of a license or who has had a license suspended or revoked under this article may appeal to the City Council by submitting a written appeal within ten (10) days of the postmark on the notice of denial, nonrenewal, suspension, or revocation. The written appeal must be submitted to the City Finance Officer, at the City Offices, 400 Washington Street, PO Box 246, Big Stone City, South Dakota, 57216. The appeal will be considered by the City Council at a regularly scheduled meeting within one month of the receipt of the appeal.

13: LICENSES NOT TRANSFERRABLE

No cannabis establishment license holder may transfer the license to any other person or entity either with or without consideration, nor may a license holder operate a cannabis establishment at any place other than the address designated in the application.

14: HOURS OF OPERATION FOR DISPENSARIES

No cannabis dispensary may operate between the hours of 1:00 AM and 7:00 AM any day of the week.

15: LIABILITY FOR VIOLATIONS

Notwithstanding anything to the contrary, for the purposes of this article, an act by an employee or agent of a cannabis establishment that constitutes grounds for suspension or revocation will be imputed to the cannabis establishment license holder for purposes of finding a violation of this article, or for purposes of license denial, suspension, or revocation, only if an officer, director or general partner or a person who managed, supervised or controlled the operation of the cannabis establishment, knowingly allowed such act to occur on the premises.

16: PENALTIES

Any person who operates or causes to be operated a cannabis establishment without a valid license or in violation of this article is subject to a suit for injunction as well as prosecution for ordinance violations. Such violations are punishable by a maximum fine of five hundred dollars ($500.00). Each day a cannabis establishment so operates is a separate offense or violation.

17. SEVERABILITY

The provisions of this ordinance are severable. If any provision of this ordinance or the application thereof to any person or circumstance is held to be invalid, such invalidity shall not affect other provisions or applications of this ordinance which can be given effect without the invalid provision or application.

Date adopted: September 7, 2022

/s/ Randy Athey, Mayor

ATTEST: /s/ Nancy Lee, Finance Officer

Jim McFarland is requesting a new address for the application process on his Cannabis Establishment application that will be located in the building at 757 Main Street.

Rabe made a motion to refer his application for the correct address to the Planning and Zoning committee, Roscoe seconded the motion. All in favor. Motion Carried.

Councilmember Roscoe discussed at Veterans Park that some trees will be planted next spring.

Attorney Stock referenced that October the council will still meet at 6:30 p.m. and November thru March the city council will meet at 5:30 p.m. with April thru October meetings being at 6:30 p.m. per Big Stone City Ordinance. City council meetings are held at the Big Stone Community Center and are open to the public.

Nancy Lee discussed the Capital Outlay Accumulations and presented the 2023 Annual Budget to council. Being no further questions, Mayor Athey asked for a motion to approve the 1st Reading of the Ordinance 2022-01 Annual Budget 2023.

Motion made by Redfield to approve the 1st Reading of the Ordinance 2022-01 Annual Budget 2023 Rabe seconded the motion. Upon Roll call. Ayes: Roscoe, Zahnow, Rabe, Brown, Redfield. Nayes: None. Absent: Stoddard. Motion Carried.

At 7:17 p.m. Redfield made a motion to adjourn the meeting and Rabe seconded the motion. All in favor. Motion Carried.

Mayor Athey asked for a motion to go into executive session Zahnow made the motion and Brown seconded the motion. All in favor. Motion Carried.

At 7:48 p.m. Roscoe made a motion to come out of executive session and Redfield seconded. All in favor. Motion Carried.

Redfield made a motion that on Saturday, October 22, 2022 a retirement party will be held at the Big Stone City Community Center from 1:00 p.m. – 5:00 p.m. in honor of Robert Athey’s 45 years of service to Big Stone City. Brown seconded the motion. All in favor. Motion Carried.

At 7:50 p.m. Redfield made a motion to adjourn the meeting and Rabe seconded the motion. All in favor. Motion Carried.

/s/ Randy Athey, Mayor

ATTEST: /s/ Nancy Lee, Finance Officer