07-615Council File # Q �—(p/,j
Green Sheet # 3039330
RESOLUTION
CITY OF PAUL, MINNESOTA
Presented Sy:
Referred To:
By:
1 RESOLVED, that the City of Saint Paul, Police Department, is authorized to enter into the attached
2 Joint Powers Agreement with The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF�. A
3 copy of said agreement is to be kept on file and on record in the Office of Financial Services.
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Benanav �/
Bastrom ,/
Hamis ,i
Helgen J
Lantry �
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Thune J
Adopted by Council: Date:
Adoption Certified by
By: ���r�
Approved by
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Date: 7{ /s/p'7
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Committee:Date:
by City Attorney:
Approved by Mayor for Submission to Council:
BY•�Q-. -��.3-D�
Q:�Fiscal W O&CR�200TATF2007.xis
Requested by Department of:
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07-��5
Departrnentloifiedcouncil: Date Initia[ed: I
PD —poticeveparwem ; o2-�Y-0� ; Green Sheet NO: 3039330
CoMact Person & Phone:
Chief John Hartington
266-5588
Mus[ Be on Council Agen
Doc.Type: RESOLUTION
� E-DOeument Required: Y
j DocumeM CoMact: Artry Brown
ContactPhone:
� uepartnrenc aem�orerson mmauuace
0 'PoliceDeparLment I PdiceDeparhnent i
A55ign 1 diceDeparlment i PoliceDepazfinent �
Number 2 'ryAttorney i CitvAttorcey I�
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Routing 3 yor's OSce I Mavor i�
Order 4 ,�WOd i Councd
5 i Clerk I Ci Clerk
6 oliceDepar�ent I PdiceDepazhnent
Total # of Signature Pages J_ (Clip All Loeations for Signature)
Signatures on the attached council resolution au[horizing the City of Saint Paul, Police Deputment, to enter in[o the attached Joint
Powers Agreement with The Bureau of Alcohol, Tobacco, Fireazms, and Explosives (AT�.
idanons: Approve (A) or R
Planning Commission
CIB Committee
Civil Service Commission
the Following
1. Has this person�rm ever worketl under a contrac[ for this department?
Yes No
2. Has this person/firm ever been a city employee?
Yes No
3. Does this persoNfirm possess a sltill not normally possessed by any
current city employee? '
Yes No
Explain all yes answers on separate sheet and attach to green sheet
Initiating Problem, Issues, OpportunRy (Who, What, When, Where, Why):
The Saint Paul Police Department along with ottter participants, will assis[ the ATF in investigating Federal cigazette, fireanns, and
other violations within the State of Minnesota. The A1'F will assist SPPD and other participates in investigating State cigazette,
fireui[�s, and other violations.
Ativantages If Approved:
The agencies working together will be more efFicent and effective in enforcing, investigating, and prosecuting Federa] and State
cigazette, fireazms, and other violations.
Disadvantages If Approved:
None.
JUL � 3 2007
MAYOR'S OFFICE
Disadvantages If Not Approved:
The agencies will noY be able to jointly combat Federal and State cigazette, firearms and other violations. �; ; �� �����
T�ansaction:
Funding Source: $ee a9reery�g�Y
Finaneial Information:
(F�cplain)
CosVRevenue Butlgeted:
Activity Number:
May 2, 2007 12:19 PM Page t
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MEMORANDUM OF UNDERSTANDING
: 1113�11 i:il � �l►i
THE BUREAU OF ALCOHOL, TOBACCO, F'II2EARMS AND EXPLOSIVES
THE NIINNEAPOLIS POLICE DEPARTMENT
THE ST. PAUL POLICE DEPARTMENT
THE DAKOTA COUNTY SHERIFF'S OFFICE
THE WEST ST. PAUL POLICE DEPARTMENT
THE NORTH ST. PAUL POLICE DEPARTMENT
TI�E EAGAN POLICE DEPARTMENT
THE MAPLE GROVE POLICE DEPARTMENT
THE RAMSEY COUNTY SHERIFF'S OFFICE
PURPOSE AND AUTHORITY
This Memorandum of Understanding/Joint Powers Agreement ("MOU/AgreemenY')
docuxnents and sets forth the understanding between the United States Department of
Justice, Bureau of Alcohol, Tobacco, Firearms and Explosives ("ATF"), a federal agency,
the City of Minneapolis Police Department ("MPD"), the City of St. Paul Police
Department (SPPD), the Dakota County SherifPs Office ("DCSO"), the City of West St.
Paul Police Department ("WSPPD"), the City of North St. Paul Police Department
("NSPPD"), the City of Eagan Police Department (`BPD"), the City of Maple Grove
Police Department ("MGPD"), and the Ramsey County Sheriff's Office ("RCSO"),
political subdivisions within the State of Minnesota, with respect to a joint cooperative
law enforcement effort. The purpose of this MOU/Agreement is to document the parties
understanding that it is to their mutual benefit to cooperate in eliminating the illegal flow
of stolen and/or contraband cigarettes being trafficked by Organized Crime. This
cooperation will involve the investigation and prosecution of those individuals, groups,
companies and/or other commercial targets who aze criminally involved in the illegal
theft, sale, possession and transportation of stolen and/or contraband cigarettes, as well as
the sharing of trafficking-related information and intelligence. This MOU will formalize
relationships between the participating agencies with regard to procedures and utilization
of resources in order to masimize interagency cooperarion.
NAME OF TASK FORCE
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The name of this joint cooperarive operation is the Twin Cities Task Force ("Twin Cities
Task Force" or "TCTF"). The agencies participating in ttris TCTF MOU/Agreement
shall hereinafter be referred to as the participants.
BACKGROTIND
Thefts of cigazettes and the trafficking of those stolen cigazettes, as well as trafficldng in
other contraband cigazettes, are two of this area's primary concems. Cigazettes aze being
stolen in two ways, either by so-called "smash-and-grab" tacrics, or through the use of
diversionary tacrics, and the stolen cigarettes are then being re-sold to so-called
"legitnnate" cigarette retailers for placement on their shelves and re-sale to the public.
While the Mimiesota State taaces have been paid on these cigarettes, it is lrnown that false
insurance claims have been used to maacimize profits. That is, the cigarettes are stolen
from a knowing individual owner, who then buys them back form the thieves, paying no
more than half the actual value, and replaces them on the shelves of one of his or her
stores. Thereafter, the owner claims an insurance loss, being reimbursed for the actual
value of the cigarettes, despite having sold them in another locarion. In addition to the
above activities, it is believed that contraband and possibly counterfeit cigazettes have
been trafficked into Minnesota, and counterfeit taac stamps have also been found in
various locations.
Those responsible for the majority of the actual thefts, which neazly always take place at
night, are lrnown gang members, from various gangs, including "the Bloods," "the
Gangster Disciples," "the He1Ps Outcasts Outiaw Motorcycle Gang," and "the Prison
(Outlaw) Motorcycle Gang." These gang members are then re-selling the cigazettes to
the involved cigazette retailers (not all retailers aze involved — some are mere victims),
who restock the shelves in the affected stores (or other locarions). It is believed that the
retail store owners involved are members of a loose-lrnit cruninal organization or
organizations, and that they are attempting to obtain low-cost cigarettes in any way
possible, inciuding through the use of trafficking from low-tax states to Minnesota.
Intelligence has also shown that some of these same retailers aze involved in trafficking
cigarettes, and most likely firearxns, to locations around the country, including Chicago
and possibly California. Cigarettes and fireanns are trafficked to other states to be
illegally re-sold for a profit. Applicable state tases aze thereby being evaded. These
actions constitute potential violations of the Contraband Cigarette Trafficking Act, the
Wire and Mail Fraud statutes, Federal Money Laundering Statutes, and Federal
Racketeering Statutes. The trafficking in firearms violates Federal Fireazms Statutes.
A partial listing of various state excise tax rates currently in effect shows how lucrative
the trafficking of contraband cigarettes has become. In Illinois, and specificaIly in
Chicago, the tax on ciguettes is very high, leading to the trafficking of contraband
cigarettes to that city. Intelligence has shown that at least one group of retailers in the
Twin Ciries area has family connections to Chicago, and members of that family travel
between those locations on a regulaz basis. Due to the low cost of Other Tobacco
Products ("OTP") in Illinois as compared to Minnesota, it is a lucrative criminal activity
to traffic OTP from Illinois to Minnesota, and rehxrn to Illinois with cigarettes for the
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Chicago mazket. In addition, fireanns that have been recovered in criminal activities in
Chicago have been found in the hands of inembers of the Gangster Disciples gang, and
have originated in the Twin Cities area.
Despite diligent efforts of state and local law enforcement, illicit sources of stolen andlor
contraband cigazettes continue to be available to the criminal element in Minnesota
Some licensed cigazette retailers are presently engaged in this unlawful diversion and
dishibution of cigarettes. Other non-licensed individuals aze currently acquiring the
contraband cigazettes for the illegal black market, thereby depriving the states of the
applicable excise tas revenues. As this problem grows, it necessitates the use of Federal,
State and County law enforcement agencies to pool their resources and work together to
effectively develop and implement enforcement strategies to combat this dangerous
trend.
AUTHORITY
This MOU/Agreement is established pursuant to the Participants authority to investigate
criminal activities involving cigarettes, fireanns, and other offenses. ATF authority is
derived from 28 C.P.R. § 0.130 (related to the general functions of ATF), 18 U.S.C.
Chapter 114 (related to cigarettes) and 18 U.S.C. Chapter 44 (related to firearms), 26
U.S.C. Chapter 53 (related to certain firearms and destructive devices). The state and
local agencies are empowered to enter into joint powers agreement pursuant to Minnesota
Statutes, 471.59, Subdivision 10, to provide services or functions which they aze
authorized to provide for themselves.
State and local officers assigned to the Twin Cities Task Force who are deputized by a
Federal agency other than ATF inay possess Federal law enforcement authority as
specified by the agency affording deputation.
DURATION OF THE MOU/AGREEMENT
This MOU/Agreement will be effecrive on the date it is executed by all Participants. It
will continue in force for up to three years from the execution date or until terminated by
mutual agreement of the Participants. Any Participant to this MOU/Agreement may
terminate the MOU/Agreement by giving ten days written notice of such termination to
the other Participants. All notices to ATF under this MOU/Agreement shall be delivered
to the Special Agent in Charge ("SAC") of ATF, St. Paul Field Division, St. Paul,
Minnesota. All notices under this MOU/Ag�eement shall be delivered to the Chief of
Police ("Chief') of the Minneapolis Police Department, Minneapolis, Minnesota. All
notices under this MOU/Agreement shall be delivered to the Chief of Police ("Chief') of
the St. Paul Police Deparhnent, St. Paul, Minnesota. All notices under this MOU/
Agreement shall be delivered to the Sheriff of the Dakota County Sheriff's Office,
Dakota County, MN. All notices under this MOU/Agreement shall be delivered to the
Chief of Police ("Chief') of the West St. Paul Police Depariment, St. Paul, Minnesota.
All notices under this MOU/Agreement shall be delivered to the Chief of Police
("Chief') of the North St. Paul Police Department, N. St. Paul, Minnesota. All notices
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under this MOU/Agreement shall be delivered to the Chief of Police ("Chief') of the
Eagan Police Depariment, Eagan, Minnesota. All notices under this MOU/Agreement
shall be delivered to the Chief of Police ("Chief') of the Maple Grove Police Department,
Maple Grove, Miuuesota_ All notices under this MOU/A�eement shall be delivered to
the SherifFof the Ramsey County Sheriff's Office, Ramsey County, Minnesota.
GENERAL TERMS
The Participants shall establish and operate a joint task force for the purpose of
invesrigating cigazette, firearms and other violations within the State of Minnesota,
specifically in and around the Twin Cities metro area. It is the intention of the
Participants that the participants will assist ATF in investigating Federal cigarette,
fireazms and other violations, and that ATF will assist the other participants in
investigaring State cigarette, firearms and other violations. The other violations aze to
include mail and wire fraud-related crimes, as they relate to stolen and/or contraband
cigazettes.
CHAIN OF COMMAND
ATF shall be the lead agency. The other participants will provide investigators to
participate in the Twin Cities Task Force.
The SAC of the St. Paul Field Division of ATF shall be ATF's coordinator for the Twin
Cities Task Force. The Chief of MPD shall be MPD's coordinator far same. The Chief
of SPPD shall be SPPD's coordinator for same. The Sheriff of the DCSO shall be
DCSO's coordinator for same. The Chief of WSPPD shall be WSPPD's coardinator for
same. The Chief of NSPPD shall be NSPPD's coordinatar for same. The Chief of the
EPD shall be EPD's coordinator for same. The Chief of MGPD shall be MGPD's
coordinator for same. The Sheriff of RCSO shall be RCSO's coordinator for same.
These coordinators or their designees shall have overall responsibility for policies and
guidelines affecting the operations of the task force. Members of the Twin Cities Task
Force will continue to operate within their norxnal chain of command, and be responsible
to their own agency or department, while assigned to the Twin Cities Task Force.
OPERATIONS
Twin Cities Task Force coordinators or their designees will be primarily responsible for
opening, assigning, directing, monitoring, and closing Task Force investigations. Each
Participant agrees to take no unilateral action with respect to Task Force operations, as
this would not be in the best interest of this cooperarive effort.
EQUIPMENT
Except as provided below, it is not anticipated that ATF will use vehicles or other
equipment of the other participants, or that the other participants will use vehicles or
other equipment of ATF in furtherance of the purposes of the TCTF. As circuxnstances
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may require and with specific authorizarion, officers or agents of one Participant may use
vehicles or other equipment of the other Participant. All use of vehicles and equipment
shall be exclusively for official TCTF purposes such as surveillance, investigation,
undercover operations and other TCTF Task Force purposes. Said use ofvehicles and
other equipment shail not be for personal purposes or for duties outside the TCTF.
FCTNDING
Each Participant will provide for the salary, over-time, withholding, insurance coverage
and other obligations relating to wages and benefits that may be due and coming to their
own employees assigned to TCTF. Any future agreement for ATF to provide funding for
the participants officers assigned to the TCTF (salary, overtime, etc.) shall be by separate
agreement or memorandum of understanding between the Participants and shall be
subject to the availability of funds for such purpose and such other requirements, as shall
be agreed upon by the Participants or required by law. All other admnustrative costs and
operations expenses will be paid as agreed between the Participants.
LIABILITI'
The Participants shall be responsible for the negligent or wrongful acts or omissions of
their respective employees.
FEDERAI. AND STATE PROSECUTIONS AND FORFEITUItES
The Participants, in conjunction with the appropriate federal and state prosecuting
authority, shall determine whether TCTF cases will be prosecuted Federally or by the
State ofMinnesota.
The Participants, in conjuncrion with the appropriate Federal and state prosecuting
authority, shall also deternune whether TCTF forfeitures will be pursued under Federal or
Minnesota law. The Participants agree that, to the extent permissible by the applicable
laws, there shall be an equitable sharing of forfeited assets.
Participants shall make their agents and officers available to testify and otherwise assist
as needed in the prosecution of any Federal and/or state criminal prosecurions that arise
from the TCTF investigations or operations.
INFORMANTS
Informants developed by agents and officers engaged in TCTF operations and
invesfigafions may be registered as informants of either Participant ar of both Participants
for administrative purposes and handling, as may be mutually agreed upon by the
Participants. The policies and procedures of the registering Participant will apply to the
inforxnants it registers. In addition, it will be incumbent upon the registering Participant
to maintain a file with respect to the performance of all confidential informants it
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registers. All information obtained from TCTF informants will be shazed with both
Participants.
The registering Participant will pay all reasonable and necessary informant expenses
incurred pursuant to TCTF operations and investigations. Therefore, ATF shall be
responsible for paying informant expenses relating to informants it registers and other
participants shall be responsible for paying/informant expenses relating to informants
they register. In instances of joint registrarion, either ATF or the other registering
participant may be responsible for paying informant expenses, as may be agreed upon by
the Participants.
MEDIA RELATIONS
Media releases pertaining to Twin Cities Task Force investigations and operations will be
coordinated and made jointly by the participants. No Participant shall make a unilateral
press release without prior approval of the other Participants.
MODIF'ICATION OF AGREEMENT
The terms of this MOU/Agreement may be amended, modified, or revised by agreement
of the Participants. All amendments, modifications, and revisions shall be in writing.
This MOUTAgreement is an agreement beriveen ATF and the other participants, and does
not confer any right or benefit to any private person or party, private or public.
This MOU/Agreement is hereby accepted as setting forth the general intentions and
understandings of the undersigned officials for their respective agencies.
Bernard 7. Zapor Date
Special Agent in Charge
Bureau of Alcohol, Tobacco, Firearms
and Explosives
Timothy J. Dolan Date
Chief
City of Minneapolis, Minnesota Police
Department