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HomeMy WebLinkAbout06-24-2025 City Council PacketCITY OF OAK PARK HEIGHTS CITY COUNCIL MEETING AGENDA TUESDAY, JUNE 24, 2025 AT CITY HALL 6:00 P.M. 6:00 p.m. L Call to Order/Pledge of Allegiance/AI212roval of Agenda Estimated times 6:00 p.m. IL Swearing in of Chuck Dougherty as Mayor 6:05 p.m. III. Council/Staff Reports A. Councilmember Dougherty B. Councilmember Johnson C. Councilmember Liljegren D. Councilmember Runk E. Staff • City Administrator • Chief of Police • Assistant City Administrator/City Clerk (pg. 2) 6:10 p.m. IV. Visitors/Public Comment This is an opportunity for the public to address the Council with questions or concerns on issues not part of the regular agenda (Please limit comments to 3 minutes in length). A. 2024 Audit Presentation — Redpath and Company (pg. 3) B. Washington County Attorney Introduction — Kevin Magnuson 6:10 p.m. V. Consent A eg nda (Roll Call Vote) A. Approve Bills & Investments B. Approve City Council Worksession Notes — June 10, 2025 (pg. 17) C. Approve City Council Minutes — June 10, 2025 (pg. 19) D. Approve Ordinance Regulating Virtual Currency Kiosks (pg. 21) E. Approve License for Sales of Fireworks by TNT Fireworks in Walmart Parking Lot (pg. 29) F. Approve Amendment to Employee Handbook Related to Health Care Savings Plan Benefit (pg. 31) 6:30 p.m. VI. Public Hearings 6:30 p.m. VIL Old Business 6:30 p.m. VIIL New Business 6:30 p.m. VIIL Other Council Items or Announcements 6:30 p.m. IX. Adjournment Page 1 of 32 City of Oak Park Heights 14168 Oak Park Blvd. N • Oak Park Heights, MN 55082 • Phone (651) 439-4439 • Fax (651) 439-0574 June 17, 2025 Erin Rowlson 14372 57th Street North Oak Park Heights, MN 55082 Dear Ms. Rowlson: Thank you for participating in the City's recycling program. As an incentive to recycle and to increase fire prevention awareness, the City rewards two residents each month with their choice of an award of a fire extinguisher and/or smoke detector. Your residence was checked on Tuesday, June 17, to determine if you had your recycling bin out with your regular garbage. Your recycling was out and ready for collection; therefore, you are one of this month's winners. Please contact me via phone at 439-4439 or email at jpinski@cityofoakparkheights.com to let me know your choice of award. On behalf of the Oak Park Heights City Council, thank you for participating in the City's recycling program. Congratulations! Jennifer Pinski Assistant City Administrator TREE CITY U.S.A. Page 2 of 32 N00 O I? u � � O co L U Com co (D Q � co N co U L L cn a) E ♦--+ m U C: N (� > O U- O N C.) 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C4 D CL 0 � � o � 0 N # m m C 0 _ mr N — — a 74s«3 ¥ ¥ U3 m U3 U3 OL OL/ E a) m 00 TE E — — U3 LU / � 3 � � / / 0 � | (a_CD x U.i 73 T N N la) Q) 111-1 0) rq CD 0- 0 CD cl (3) C-4 co T- F a ge 14 of 32 5 / ul %c q fw ECD ( § f 3 § f OL § [ § E k\ 7/ Qe e om @ ƒc O � x W _ n E ^ � c N d Elf � � �-u � ^ « � � � ? q (a) � E � o � k ' & 3 q k k CJ ci a a C=� C R o m @ N Page 45«3 m ¥ THIS PAGE INTENTIONALLY LEFT BLANK Page 16 of 32 0 CITY OF OAK PARK HEIGHTS CITY COUNCIL WORKSESSION NOTES TUESDAY, JUNE 10, 2025 Present: Deputy Mayor Dougherty, Councilmembers Johnson, Liljegren and Runk; City Administrator Rife, Assistant City Administrator Pinski, Police Chief Hansen, Public Works Director Kegley, and City Attorney Christina Benson. Absent: None. 1. Call to Order: Deputy Mayor Dougherty called the meeting to order at 5:00 p.m. 2. Vacancy in the Office of the Mayor: City Attorney reviewed a memo relating to procedure. Deputy Mayor Dougherty expressed interest in the mayor seat until a special election. Councilmember Johnson prepared a draft application for a council vacancy. The Council decided to open the vacant council seat up for application with a deadline of July 3, 2025 to apply. No action was taken. 3. Review the 2025 City Appointments: The City Council reviewed the appointments and made some changes to be approved at the City Council meeting that evening. No action was taken. 4. 581b Street Arborvitae Trees: City Administrator Rife provided an update. No action was taken. 5. Adjournment: The meeting was adjourned at 5:35 p.m. Page 17 of 32 THIS PAGE INTENTIONALLY LEFT BLANK Page 18 of 32 CITY OF OAK PARK HEIGHTS TUESDAY, JUNE 10, 2025 CITY COUNCIL MEETING MINUTES I. Call to Order/Pledte of Allegiance/Approval of Agenda: Deputy Mayor Dougherty called the meeting to order at 5:50 p.m. Present: Councilmembers Johnson, Liljegren and Runk. Staff present: City Administrator Rife, Police Chief Hansen, Assistant City Administrator/City Clerk Pinski, and City Attorney Christina Benson. Absent: None. Consent Agenda F was added: "Schedule Worksession for 5:00 p.m. on June 24, 2025" Councilmember Johnson, seconded by Councilmember Liljegren, moved to approve the Agenda as amended. Carried 4-0. II. Council/Staff Reports: A. Councilmember Dougherty: He reported he attended Parry in the Park. B. Councilmember Johnson: She reported she attended Party in the Park. C. Councilmember Liljegren: He reported he attended Parry in the Park, and the next Fire Department Advisory meeting was set for June 11 at 5:00 p.m. D. Councilmember Runk: He reported he attended Party in the Park and the Board of Water and Soil Resources meeting. He said they discussed the Washington County Groundwater Plan, and he had a copy. E. Staff: City Administrator Rife reported that the Lookout Trail watermain was back online, and residents would be reconnected later that week. Police Chief Hansen reported that there would be SWAT training at the Stillwater Area High School on Wednesday, June 18. Assistant City Administrator Pinski reported that Mary Beecher of 14372 Upper 56th Street North was chosen as the recycling award winner. She thanked the City Council and staff for the hard work to make Party in the Park successful. III. Visitors/Public Comment: None IV. Consent Agenda: A. Approve Bills & Investments B. Approve City Council Worksession Notes — May 27, 2025 C. Approve City Council Minutes — May 27, 2025 D. Approve Resolution Authorizing Receipt of Donations to the City and Directing the Donations be Used for Party in the Park E. Approve to Not Waive Statutory Tort Limits for City Liability Insurance for 2025-2026 Page 19 of 32 City Council Meeting Minutes June 10, 2025 Page 2 of 2 F. Schedule Worksession for 5:00 p.m. on June 24, 2025 Councilmember Johnson, seconded by Councilmember Runk, moved to approve the Consent Agenda. Roll call vote taken. Carried 4-0. V. Public Hearings: None VI. Old Business: None VIL New Business: A. Resolution Filling Mayor Seat and Declaring Vacancy: Councilmember Runk, seconded by Councilmember Liljegren, moved to approve the Resolution. Roll call vote taken. Carried 3-0-1, Dougherty abstained. B. Resolution Updating City Appointments for 2025: Councilmember Johnson, seconded by Councilmember Liljegren, moved to approve the Resolution. Roll call vote taken. Carried 4-0. VIII. Other Council Items or Announcements: City Administrator Rife reported that applications will be accepted for the City Council vacancy through July 3, 2025. IX. Adiournment: Councilmember Liljegren, seconded by Councilmember Johnson, moved to adjourn at 5:56 p.m. Carried 4-0. Respectfully submitted, Approved as to Content and Form, Jennifer Pinski City Clerk Chuck Dougherty Mayor Page 20 of 32 a� Oak Park,%._ G Date: June 24, 2025 Consent TO: Mayor and City Council FROM: Jacob Rife, City Administrator AGENDA ITEM: Adopt Ordinance Regulating Virtual Currency Kiosks BACKGROUND: At the April City Council workshop, there was discussion relating to the cryptocurrency kiosks located within the City. The Council directed Attorney Sandstrom to draft an ordinance that would create a registration process for these kiosks. FINANCIAL IMPACT: • DOES ACTION REQUIRE EXPENDITURE OF FUNDS? No ACTION REQUESTED: Approve Ordinance Amendment to enact City Ordinance 1414 and Summary for Publication ATTACHMENTS: 1. Ordinance Amendment Enacting City Ordinance 1414 2. Resolution Authorizing Summary for Publication Page 21 of 32 CITY OF OAK PARK HEIGHTS WASHINGTON COUNTY, MINNESOTA ORDINANCE NO. 2025-1414-02 AN ORDINANCE ENACTING OAK PARK HEIGHTS CITY CODE CHAPTER 1400, SECTION 1414, VIRTUAL CURRENCY KIOSKS The City Council of the City of Oak Park Heights does ordain: SECTION 1. ENACTMENT. Oak Park Heights City Ordinance 1414 is hereby enacted as follows: §1414.01 Purpose, Intent, and Authority (A) Purpose. The City recognizes that: (1) Virtual currency kiosks ("Kiosks") are a significant instrument in fraud and scams. In 2023, the Federal Bureau of Investigation ("FBI") reported over $189 billion in losses due to fraud via Kiosks. While some legitimate transactions may take place via the Kiosks, the machines have quickly become a preferred payment method for scammers. (2) Criminals manipulate, intimidate and/or threaten their victims into using the Kiosks to send funds. According to the FBI's Internet Crime Complaint Center, criminals give detailed instructions to individuals, including how to withdraw cash from their bank, how to locate a kiosk, and how to deposit and send funds using the kiosk Criminals instill a sense of urgency and isolation in their victims. In some of the scams, criminals falsely represent themselves as government officials or law enforcement officers. (3) The elderly are particularly susceptible to the frauds perpetrated via the Kiosks. Per FBI statistics, these scams overwhelmingly affect adults over age 60, with the losses reported for those over age 60 representing $124 million of the $189 million losses reported in 2023. (4) In the City of Oak Park Heights alone, the Oak Park Heights Police Department ("OAK PARK HEIGHTS POLICE DEPARTMENT") reports losses of approximately $300,000 from Kiosk related fraud from 2023 through 2024. (5) The scams often require that the victim deposit large sums of cash into the Kiosk, meaning that in addition to the Kiosk scam, there is a greater general risk to public safety due to individuals carrying large amounts of cash to the Kiosks. Page 22 of 32 (6) The State passed legislation attempting some regulations in 2024, found in Minn. Stat. Ch. 53B. However, the State has acknowledged that criminals have already found work-arounds to the statute. The burden of Kiosk fraud exists on all levels of governmentfederal, state, and local. The City's purpose in passing this ordinance is to address our share of that burden. (B) Intent. This chapter is intended to regulate Kiosks located within the City to protect the general welfare of the public, especially elderly and vulnerable adults. (C)Authority. Pursuant to Minn. Stat. §412.221 subd. 32, the City has the authority to provide for the prevention of crime, the protection of property, and the promotion of general welfare by ordinances consistent with state and federal law. §1414.02 Definitions The definitions provided in Minn. Stat. §53B.69 are incorporated here by reference. For the purposes of this chapter the following definitions shall apply, unless the context clearly indicates or requires a different meaning: Hosting Business: The real property owner that is providing or leasing space or utilities to a virtual currency kiosk operator for the purpose of operating a virtual currency kiosk. Virtual Currency: See Minn. Stat. §53B.69 subd. 6. Virtual Currency Kiosk ("Kiosk'): See Minn. Stat. §53B.69 subd. 10. Virtual Currency Kiosk Operator ("Kiosk Operator'): See Minn. Stat. §53B.69 subd. 11. §1414.03 Registration Required. No Hosting Business shall host a Kiosk without first having registered that Kiosk with the City. (A)Applications. An application for registration of a Kiosk shall be made on a form provided by the City. The application shall include: (1) The full name of the Hosting Business; (2) The Hosting Business's address, telephone number and email; (3) The name, business address, and valid registered agent of the Virtual Currency Kiosk Operator; (4) The proposed location of the Kiosk; (5) A copy of Kiosk Operator's valid state license; Page 23 of 32 (6) A copy of the lease/rental agreement between the Hosting Business and the Kiosk Operator; (7) All information provided to the State pursuant to Minn. Stat. §53B.74. (8) Written confirmation from the OAK PARK HEIGHTS POLICE DEPARTMENT that the Kiosk Operator has no more than two (2) instances of substantiated fraud, as determined by the OAK PARK HEIGHTS POLICE DEPARTMENT, involving any Kiosk owned or operated by that Kiosk Operator located within the City in the last six (6) months; (9) Written confirmation that the Kiosk Operator and the Hosting Business have been found to be in compliance with the requirements of this ordinance at a preliminary compliance check performed by the OAK PARK HEIGHTS POLICE DEPARTMENT or its designee; and (10) Any additional information the City deems necessary. (B)Action. Upon receipt of a completed application and the applicable registration fee as designated by the City's fee schedule, the City Clerk shall approve or deny the registration as necessary. (1) Registrations shall be good for one (1) calendar year, provided they are not revoked or suspended pursuant to § 121.06. (C)Moveable Place of Business. No registration shall be issued to a moveable place of business. Only fixed location businesses shall be eligible to be registered under this section. (D)Renewals. At least 60 days before registration expires, an application for renewal shall be filed with the City Clerk, containing all the information required in § 121.03(A). No person or business has a right to have their registration renewed. (E) Changes in Ownership. Registration is non -transferable. If there is a change in ownership of the retail establishment, a new registration is required, and the new owner shall be required to submit a new application. Registration shall only be valid for the premises for which it is issued, and any change in location of the premises shall require reapplication by the applicant for registration of the new premises. § 1414.04 Registration Restrictions Registration shall be issued subject to the following restrictions: (A)Hosting Business and Kiosk Operator shall comply with all applicable regulations of the State of Minnesota relating to Kiosks. Page 24 of 32 (B) Hosting Business shall prominently display a sign provided by the City which shall contain warning information regarding the risk of Kiosk scams. The sign shall be located within two (2) feet of the Kiosk and shall be clearly visible to individuals using the Kiosk. (C) Hosting Business shall have a dedicated, closed-circuit camera for the Kiosk and shall position said camera as requested by OAK PARK HEIGHTS POLICE DEPARTMENT. Hosting Business agrees to provide camera footage to the OAK PARK HEIGHTS POLICE DEPARTMENT within 48 hours of a request and shall maintain the video footage for a minimum of 30 days. (D) A Hosting Business who has had a previous registration suspended or revoked shall not be eligible for a new registration for 24 months. § 1414.05 Compliance Checks and Inspections Prior to issuing the registration, all Hosting Business shall be subj ect to an initial compliance check to ensure compliance with the provisions of this chapter. Pre -registration compliance checks shall be conducted by the OAK PARK HEIGHTS POLICE DEPARTMENT or other delegated law enforcement officers or agencies during regular business hours. All retail establishments shall be open to inspection by the OAK PARK HEIGHTS POLICE DEPARTMENT or other delegated law enforcement officers or agencies during regular business hours. From time to time, a law enforcement officer shall conduct inspections to ensure compliance with the provisions of this chapter. Nothing in this chapter shall prohibit other compliance checks or inspections authorized by state or federal laws for educational, research, or training purposes, or required for the enforcement of a particular state or federal law. § 1414.06 Basis for Denial, Suspension, or Revocation of a Registration (A) The following shall be grounds for denying the issuance or renewal of a registration or suspending or revoking a registration issued under this chapter: (1) The application is incomplete or the registration fee has not been paid. (2) The Kiosk does not comply with City Code or State law. (3) The Hosting Business or Kiosk Operator has made fraudulent statements, misrepresentations, or false statements in the application or related documents. (4) The hosting of the Kiosk is conducted in such a manner as to constitute a breach of the peace, a menace to the health, safety, and welfare of the public, or a disturbance of the peace or comfort of the residents of the City, upon recommendation of the Police Chief, City Administrator, or City Council. Page 25 of 32 (5) The Hosting Business or Kiosk Operator has acted in an unauthorized manner or beyond the scope of the registration granted. (6) Failure to allow inspections of the registered premises, for the purpose of ensuring compliance with the law, at any time it is occupied or open for business. (7) Failure to continuously comply with all conditions required as precedent to the approval of the registration, including but not limited to the number of substantiated fraud events, all requirements of this chapter, and all state or federal regulations related to Kiosks. (8) Real estate taxes, personal property taxes, or special assessments on the business premises or the real property where the Hosting Business is located have become delinquent or are unpaid. (9) The Kiosk has been conducted without registration after enactment of this ordinance. A sixty-day grace period will be permitted from the date of this ordinance enactment to allow for any existing Hosting Businesses to obtain registration. (10) The Kiosk Operator has had their state license revoke, denied or suspended. (11) Other good cause shown as determined by the City Council. § 1414.07 Hearings (A)Revocation, suspension, or denial of a registration shall be preceded by a hearing before the City Council. Notice of the hearing shall be sent to the Hosting Business listed on the application via certified mail at least 10 days prior to the hearing. The notice shall include the time and place of the hearing and shall state the nature of the charge. A hearing for consideration of issuing, suspending, or revoking a registration will be conducted before the City Council. At the hearing, the Hosting Business has the right to be represented by counsel, the right to respond to the charges or information provided to the Council, and the right to present evidence through witnesses under oath. It is not necessary that criminal charges be brought in order to support a determination of a registration violation, nor does the dismissal or acquittal of such a criminal charge operate as a bar to adverse registration actions under this section. (B) Following the hearing, the Council may deny, revoke, suspend, or not renew the registration or may grant or continue the registration upon such terms and conditions as it deems reasonable and necessary to accomplish the purpose of this chapter. The decision by the City Council following a hearing is final. Page 26 of 32 (C) Enforcement actions provided in this section are not exclusive and the Council may take any action with respect to a registration, employee, or retail establishment as is authorized by City Code, state, or federal law. § 1414.08 Violations Any person or business found to be in violation of this chapter shall be guilty of a misdemeanor and, upon conviction thereof, shall be punished according to law. The City may choose to issue an administrative citation in addition to other legal or equitable remedies, pursuant to City Code Chapter 36. Violations of this chapter shall be exceptions to the issuance of a compliance letter under Chapter 36. Each day of failure to comply with the requirements of this chapter shall be an additional violation subject to fine, charges and other penalties. SECTION 2. AMENDMENT. Oak Park Heights 2025 Master Fee Schedule is hereby amended as follows: General Licenses — Business Related Virtual Currency Kiosk Registration $4,000/year SECTION 3. EFFECTIVE DATE. This ordinance shall become effective upon publication. Passed by the City Council on the day of , 2025. CITY OF OAK PARK HEIGHTS Attest: Chuck Dougherty Its Mayor Jacob Rife Its City Administrator Page 27 of 32 ORDINANCE NO. 25-05-15 CITY OF OAK PARK HEIGHTS WASHINGTON COUNTY, MINNESOTA A RESOLUTION AUTHORIZING SUMMARY PUBLICATION OF AN ORDINANCE REGULATING VIRTUAL CURRENCY KIOSKS THE CITY COUNCIL OF THE CITY OF OAK PARK HEIGHTS, WASHINGTON COUNTY, MINNESOTA, DOES ORDAIN: WHEREAS, on May 27, 2025, the City Council adopted Chapter 1414 of the City Code of Ordinances: An Ordinance Regulating Virtual Currency Kiosks. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Oak Park Heights, due to the lengthy nature of this Ordinance, has directed that this title and summary be prepared for publication pursuant to MN Stat. 412.191, Subd. 4. The Council finds that the following text clearly informs the public of the intent and effect of Chapter 1414 of the City Code of Ordinances, and hereby approves the following summary text for publication: "SUMMARY PUBLICATION OF CHAPTER 1414 OF CITY CODE AN ORDINANCE OF THE CITY COUNCIL OF OAK PARK HEIGHTS, MINNESOTA, AN ORDINANCE REGULATING VIRTUAL CURRENCY KIOSKS, was approved by the Oak Park Heights City Council on May 27, 2025. NOTICE IS GIVEN that said ordinance is summarized as follows: Chapter 1414 is enacted to define virtual currency kiosks and to establish a registration requirement and registration fee. The full text of this Ordinance is available for public inspection at Oak Park Heights City Hall located at 14168 Oak Park Boulevard North, Oak Park Heights, MN, during regular office hours." WHEREAS, the Ordinance shall be effective immediately upon its passage and publication. PASSED this 24m day of June, 2025 by the City Council of the City of Oak Park Heights, Minnesota. CITY OF OAK PARK HEIGHTS Chuck Dougherty, Mayor ATTEST: Jacob Rife, City Administrator Page 28 of 32 a� Oak Park,%._ G Date: June 24, 2025 Consent TO: Mayor and City Council FROM: Jennifer Pinski, Assistant City Administrator/City Clerk AGENDA ITEM: Approve License for Sales of Consumer Fireworks by TNT Fireworks in Walmart Parking Lot BACKGROUND: TNT Fireworks has submitted an application for a license to sell fireworks under a tent in the Walmart parking lot in Oak Park Heights. The license fee has been paid, proof of insurance has been submitted, and the file has been sent to the Police Department for background investigation. I recommend approval of the license pending passage of the background check. FINANCIAL IMPACT: • DOES ACTION REQUIRE EXPENDITURE OF FUNDS? No ACTION REQUESTED: Approve License for Sales of Consumer Fireworks by TNT Fireworks in Walmart Parking Lot ATTACHMENTS: None Page 29 of 32 THIS PAGE INTENTIONALLY LEFT BLANK Page 30 of 32 a� Oak Park,%._ G Date: June 24, 2025 Consent TO: Mayor and City Council FROM: Jennifer Pinski, Assistant City Administrator/City Clerk AGENDA ITEM: Approve Amendment to Employee Handbook Related to Health Care Savings Plan Benefit BACKGROUND: All three of the union contracts that the City has with employees include a provision offering a Health Care Savings Plan as a benefit of employment. The plan does not cost the City any money and allows employees to contribute pre-tax dollars to a savings account that can be used for health care spending after retirement. In order for non -union employees to participate in the benefit, the language that is included in each contract must be in the Employee Handbook. The City Council approved the Employee Handbook at their April 8, 2025 City Council meeting and that language was not included at that time. FINANCIAL IMPACT: • DOES ACTION REQUIRE EXPENDITURE OF FUNDS? No ACTION REQUESTED: Approve an amendment to the Employee Handbook adding language that the City will provide the opportunity for employees to participate in the Health Care Savings Plan benefit. ATTACHMENTS: Amended Language Page 31 of 32 and up to 50% if employed after January 1, 2020 for educational classes subject to the following conditions: 1. Employees must have the approval of their supervisor to take any classes for which reimbursement is requested; 2. Employees must present written proof through a report card or some similar grading system that they have achieved a grade of "C" or higher equivalent; 3. Reimbursement will occur after the employee has presented proof of grade to their supervisor; 4. Education must be job -related. 3.8 Post Employment Health Care Savings Plan The Citv will maintain a Post Employment Health Insurance Plan (I lcalth Care Savings flan) consistent with State and Federal regulations. All costs and responsibilities associated with such plan shall be paid in full by the Employees_ At no -time shill this plan and its benefits become the Financial responsibility_ of the Em lover. The -Employees shall provide the Cite �yitlt its desired selections. Eacli union !rota and non -represented employee group will have their own agreement relating to funding sources and contribution amounts. Section 3 General Standards of Conduct 4.1 Workplace Conduct To function effectively, every organization must develop policies and procedures to protect its clients and to ensure that co-workers' and OPH's rights are respected. OPH is no exception. Generally, conduct that may be disruptive, unproductive, unethical, or illegal will not be tolerated. Violation of this Standards of Conduct Policy may lead to corrective or disciplinary action, up to and including discharge. Of course, no discipline policy can be expected to address each and every situation requiring corrective action that may arise in the workplace. Therefore, OPH takes a comprehensive approach regarding discipline and will attempt to consider all relevant factors before making decisions regarding discipline. All employment is at -will which means that OPH can resort to any discipline necessary to discuss the conduct at hand. The following is a non -exhaustive list of conduct that may violate this Policy: • Falsifying records. • Engaging in fraud. • Removing employer property from the premises without authorization. • Stealing or attempting to steal employer or employee property. • Being habitually tardy or absent. • Engaging in poor timekeeping. • Fighting on employer property at any time. • Being under the influence of intoxicating substances on employer property at any time. • Being insubordinate. • Using or abusing employer time, property, materials, or equipment without authorization. • Gambling on employer premises at any time. • Sleeping on the job. 35 Page 32 of 32