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HomeMy WebLinkAboutMinutes - 1976/01/26PROCEEDINGS OF THE CITY COUNCIL CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA A regular meeting of the Mounds View City Council was called to order by Mayor Johnson on January 26, 1976, at 8:05 p.m., at Mounds View City Hall, 2401 Highway 10, Mounds View, MN 55112. Present: Mayor Johnson Also present: Clerk -Adm. Achen Councilman Hodges Attorney Meyers Councilman Baumgartner Engineer Bearden Councilman Pickar Councilman Shelquist MSP (Shelquist- Hodges) to approve the minutes of January 12, 1976. 5 ayes MSP (Shelquist Baumgartner) to approve the minutes of the special meeting of the Mounds View City Council on January 19, 1976. 5 ayes (Shelquist- Hodges) to approve the minutes of the special meeting of the Mounds View City Council on January 20, 1976. Councilman Shelquist stated that at this meeting a citizen affirmed that there is a drainage problem along Arden Avenue west of Abiding Savior Lutheran Church. Mayor Johnson stated that he abstained from voting as he was not present at the 4 ayes meeting. 1 abst. CITIZEN COMMENTS Donald Willis, 8804 Lexington, of D. W. Construction, stated that he would have to renew his license before a building permit will be issued, which would be after the next meeting. In which case he would have to have his plans all redrawn. He would like to obtain it before the next meeting and said that he has had a contractor license here before. Administrator Achen said that new state requirements for certain construction materials and techniques are being used to improve energy consumption in family homes and he is attempting to get a building permit prior to that. He confirmed that Mr. Willis was licensed in 1974. Mayor Johnson asked for the Council's position in the matter. Councilman Hodges: We have never had any problems with him. I would just as soon add him to the list tonight. Councilman Baumgartner: Agree. Councilman Pickar: See no reason why not. Councilman Shelquist: Since it does present a significant hard- ship, I would go along. Mayor Johnson: We will add your name to the list of licenses to be approved tonight. City Council minutes -2- January 26, 1976 Edward Paster of Mounds View Shopping Center stated that he thought the new City Hall looked terrific and said that he realized the Council was interested in making sure we use the name Mounds View as two separate words. This is difficult for them as their graphics are already completed. They are attempting to create an interesting and creative approach to their shopping. center and would like to be able to use the letters in all lower case without any separation. Mayor Johnson inquired if the reason was because they didn't have enough room to make it two words? Mr. Paster answered that it breaks up the continuity and they are at the edge of their borders. The Council was polled: Councilman Hodges: Would really like to see it two words but would go along with it the way it is. Councilman Baumgartner abstained because his wife was involved in making it two words. However, he felt it should be two words also. Pickar: Although I feel it should be two words we probably don't have much jurisdiction as far as names are concerned. I would support it. Howard Beaver stated that he had spoken to Barbara Haake and told her that they had decided to go into color graphics, and at any distance at all you can only see the color. People do not go down the highway and read and that they have already gone to much expense. Councilman Shelquist said that we have been assured that it would be two words and if we go to one we would be renaming it in everyone's mind. I would prefer to see it as two words. Mayor Johnson stated that it is resolved that Mounds View shall be two words. If you are going to spend that much money you might as well do it right. The concensus is 3 to 2 that the sign should be two words. Suggestions were made as to what could be done, i.e. "M" "V" be in the upper case; changing the color of the letters "M "V "S etc. Seegar Swanson of Ehlers Associates discussed the matter of the Advance Refunding Bond Sale with the Council. The resolution permits the Council to meet again on February 12 to consider bids. They can then be accepted or rejected. Five days before the bid opening they will recommend interest rates and pricing information. This would require a special meeting. Mayor Johnson stated that Attorney Meyers asked what happens to the bonds currently outstanding and Mr. Swanson replied that the people will be notified that they should turn them in. The proceeds from the sale of the new bonds are used to purchase government issues to pay back the bond holders until the call date of the refunded issue. If there are any more bonds issued during this quarter there maybe some effect, but beyond that no problem. Mayor Johnson explained that the purpose of refunding an issue is to reissue new bonds now at a rate less than the original bond issue. City Council minutes -3- January 26, 1976 MSP (Hodges Pickar) to adopt Resolution #710 for an Advance Refunding Bond Sale, bids to be opened 11:00 a.m. February 12, 1976 and to hold a special Council meeting to receive the bid 8 :00 p.m. February 12, 1976. 4 ayes 1 nay Councilman Shelquist stated that he feels that when you consider the distortion of the money market he is opposed to doing this at this time. Not opposed to giving the taxpayer a break but it may come at a later date with a normal refunding. Mayor Johnson explained that this resolution does not bind us to reis- suing new bonds, it merely sets the date. MSP (Pickar Hodges) to authorize the administrator to sign the agreement with Moody's Investors' Service for bonding rating s 5 ayes Mayor Johnson recessed the Council meeting at 8:40 p.m. and called to order the public hearing on Community Development needs and objectives. Administrator Achen stated that Congress passed the Community Development and Housing Act in 1974. The purpose was to stimu- late and promote housing and economic conditions for low and moderate income. The purpose of this hearing is to receive citizen recommendations and suggestions regarding community development projects and needs. A similar public hearing will be held on February 2 at which time the Council will decide whether to submit an application and what it will be for. Initially, Congress expected more money to be available. The criteria for selection is based on the substance of the project, and the economic and social characteristics of the city as determined by the 1970 census figures. Last year our grant appli- cation received a high ranking because it addressed housing conditions. Mayor Johnson asked if anybody in the audience would like to make any comments. Alan Zepper, 5255 Irondale, asked if Mounds View has any families who have got bad living conditions that we might be able to help. Mayor Johnson replied that with the $25,000 grant we did receive we will begin to assemble information on our housing stock, and there certainly are some. Mr. Zepper further stated that he would like a park considered in his area south of Highway 10 and east of Long Lake Road where it is badly needed. Marilyn Fauchald, League of Women Voters, stated that the League has two proposals: (1) Construction of a bike ramp and pedestrian walkway across Highway 10. She suggested that since it is a State highway perhaps we can get State funds as well. (2) To continue upgrading of parks. Bonnie Carlson, 2646 Clearview, asked what the improvements were that were put forth previously. Mayor Johnson answered that they talked about bike trails, help in constructing a storm sewer system, help in putting in a well, further development and upgrading of our parks, park shelters, cleaning out some ditches, City Council minutes -4- January 26, 1976 inspection of multiple dwellings to determine what kind of conditions these are in. Administrator Achen stated that Council established priorities last year: (1) bike trails and sidewalks, (2) waste water treatment facilities, (3) implementation of the housing maintenance code. We received funding for the 3rd choice. Bonnie Carlson stated that the most important thing is the walkway across Highway 10. Marilyn Fauchald inquired as to Mounds View's housing assistance plan, which is a prerequisite to getting these funds. Administra- tor Achen stated that the Plan calls for assistance in the form of new home construction and rehabilitation of existing units. Mayor Johnson stated that we had not contemplated any city monies being used to upgrade private dwellings. Out intent is to use some of the monies to find out which ones need the upgrading and enforcing owners to do so. Isabelle Wille, 7911 Spring Lake Road, stated that she thought there was something done when we had the wind about enforcing a tie down ordinance. Most of the trailers are still sitting on top of the ground without tie downs. Councilman Hodges explained that those mobile home units that are already in existence do not have to have them. Attorney Meyers said that the State Health Department said they would enforce if it we would put it in our ordinances. Councilman Baumgartner said the State is studying various methods of tie downs. He suggested mobile home code be revised rather than just throwing cables on the top of the trailers. Isabelle Wille stated that the League took a survey and it came out Mounds View wanted a bike trail. Councilman Baumgartner mentioned that at th regular meeting of the Parks Recreation Commission at 6:30 p.m. on February 26 the prime topic will be trails. The Commission is asking more people to become involved. He was asked if a bridge was going to be considered at all and he replied that it has been talked about for years and is certainly a part of the trail system question. Bonnie Carlson stated that the plan is beautiful but it doesn't work without the union can go on talking about trails but have to have a junction between the two halves of the City. I don't want trails on both sides of the City without a pedestrian bridge. You cannot take children biking on Highway 10 or even cross it. Marilyn Fauchald asked if when you get the money you have to spend the money the way the proposal was put in, and was told "yes Mayor Johnson asked for any furhter comments or questions. If not, thank you for your input. We will take it intc account when we prepare the application. MSP (Hodges Shelquist) to adjourn the hearing. 5 ayes City Council minutes -5- January 26, 1976 The regular Council meeting was reconvened at 9:15 p.m. Administrator Achen presented the minor subdivision request of Patrick Novak, 8368 Groveland. It was originally an uneven lot split and the Planning Commission recommended that the Council approve a lot split that was even. Otherwise no problems and the staff has no further recommendations. MSP (Shelquist- Hodges) that the Council approve the minor subdi- vision request of Patrick Novak, 8368 Groveland, as recommended by the Planning Commission to create two even lots subject to a utility easement of 5 feet on each lot on the back lot lines, if not already taken, and subject to park deduction. 5 ayes MSP (Shelquist- Baumgartner) that the Council approve the minor subdivision request of Delmar Ford, 8378 Groveland, as recommended by the Planning Commission to create two even lots subject to a utility easement of 5 feet on each lot on the back lot lines, if not already taken, and subject to park dedication. 5 ayes MSP (Johnson Shelquist) that the Council approve the minor subdivision of Janice Michael, 8330 Groveland, as recommended by the Planning Commission and as drawn on Exhibit A. which was received from Janice Michael. 5 ayes Administrator Achen explained the request of Wayne Speczka, 7634 Groveland, minor subdivision, stating that it involved a variance because there was a garage that prevented dividing the original lot in half. The Planning Commission approved a variance allowing 5 -foot setback on the rear lot line for the garage. MSP (Hodges Pickar) that the Council accept the recommendations of the Planning Commission to approve the minor subdivision request of Wayne Speczka, 7634 Groveland, allowing a 5 -foot variance on the lot line. 5 ayes Attorney Meyers introduced the proposed ordinances amending intoxicating liquor, cabaret and restaurant license fees. He stated that the Council, according to Minnesota Statutes, has the right to do this. The annual license fees shall be fixed in advance. A municipality may revoke a license for cause. In this particular cLty licenses are issued as of July 1 every year. The city can issue up to the number authorized by Statute. The licensee has no vested right in the liquor license. The city takes each one as it comes, reviews it and issues or denies the license. It does not have to issue any liquor license and is in full authority to establish the liquor license fee based on the criteria that would be appropriate. The ordinary license fees of any business should be related to administrati "re expenses but the legislature has allowed municipalities to use other criteria, i.e. amount of services that would be necessary, such as police services. The city has wide discretion, but it should be clarified clearly and the court would interpret it as reasonable. City Council minutes -6- January 26, 1976 Mayor Johnson stated that the Council took action to increase the fee for the licenses. We do not have to take immediate action on the on -sale liquor license and the businessmen asked for time to research the matter, and so it was tabled. Does anyone want to speak for liquor on -sale establishments? John G. Bell, Attorney for Anchor Inn, Donatelle's, Launching Pad and Mermaid liquor establishments,spoke to the Council. He stated that the position of the on -sale liquor establishments is that they are adequately licensed now and the fees should not be higher. In the course of their investigation they cannot find anything to justify an increase. He submitted a memorandum (attached) that he had prepared. They did not feel that the police services were of a very great amount. In checking with the number of calls, they amount to only 4% of the total calls made in a 7 -month period. The proposed ordinance would involve some overlapping in regulations. His clients are willing to pay their fair share. As a practical matter their industry is a major industry in Mounds View. The planned license fees would be the highest per capita in the area with the exception of New Brighton and Arden Hills. The proposed fees would put the liquor establishments at a disadvantage compared to surrounding areas. The Council has an obligation to their citizens to see that they are not put at a competitive disadvantage. His clients would support any projects that would help the city with its financial crunch and they want to work with the Council in every way possible to maintain a good city, etc. However, some other areas that the Council should consider is higher demands for police service in the shopping center, for example. Also an increase to the apartment areas. They do not feel that the on -sale liquor should bear the brunt of the financial crunch. He further stated that he would like his written argument included in the minutes (attached). He asked if the Bel Rae was the only place pertinent in the dance hall ordinance? The Administrator replied that that was correct. Mayor Johnson had comments: We have been informed that the toughest police services are primarily calls that are made at the liquor establishments in terms of actual physical damages to policemen and people. Would you care to comment on this? Mr. Bell: In checking on the numbers and frequency, low percentage. Further, there is more chance of injury to a policeman at a domestic. This is not a fair estimate as there are tough calls anywhere. Mayor Johnson: Do you deny that allegation then? Mr. Bell: I stand on the comments I made. Conclusions sometimes cannot be supported because the facts are not adequately presented. Could be tough calls anywhere. City Council minutes -7- January 26, 1976 Councilman Shelquist said that Mr. Bell cited license fees for surrounding communities. Roseville charges $10,000 for a liquor license. Do you feel that Roseville is using licensing power to raise what should be tax revenue? Mr. Bell: I can't say that $10,000 is too high if the city costs are that high to regulate the liquor industry in Roseville. White Bear Lake has $1500 on -sale liquor fee. Vadnais Heights the same, with $150 restaurant. Little Canada $1500 with $150 cabaret, Shoreview $2500 liquor, $200 Sunday liquor license. Maplewood $2,000 with no cabaret, Arden Hills $2500 minimum, $5500 maximum, based on size of the establishment. New Brighton similar to Arden Hills. Fridley $4500 but not cabaret tax. St. Paul $1750 with $150 cabaret. Have different situations with different population size. Shoreview has no police department. Since Mounds View will have to be competing the costs cannot be so far out of line with the competitors. Councilman Shelquist asked what criteria these municipalities that have been named used in setting their license fees? Mr. Bell said he did not know. Councilman Shelquist stated that Mr. Bell's statements that we are in error is directed only to Mounds View. Further, he said, a fair percentage of the 240 employees are from Mounds View, what percentage of them are city residents? The representative from the Launching Pad stated about 80% are from Mounds View. The Anchor Inn representative stated he would have to check his payroll records. Donatelle's representative felt a considerable percentage were. Mr. Hall from the Mermaid stated that many of of our present employees purchase from here even if they don't live here. They are potential people moving in also. Councilman Baumgartner stated that the figures of liquor licenses in other communities is really superfluous. They have a reason their fee was reached and we have a reason for charging our fee. To compare us has nothing to do with the decision I will make. Mr. Bell replied that he just wanted to show the relative position in comparison to the competition. Mayor Johnson stated that the staff has estimated that without the entertainment establishments in our city we would be able to reduce the police department by at least 1 -1/2 to 2 -1/2 people. The 1976 budget for the police department has increased $73,000. Most of that can be passed onto the taxpayer but when you couple the increase together with the extra demand on their services that these establishments require, they have to have some special treatment in sharing the costs. Mr. Bell stated that he had made other suggestions as to where the police are called. Our position is that we should pay a license fee but it should not be increased. Especially in the cabaret tax. I do not agree that you would operate with a smaller police department. Eli ht now they are reduced to one patrolman at some times. I don't see how you could cut down. City Council minutes -8- ianuary 26, 1976 Mayor Johnson asked: Are your clients unwilling to pay any additional cost increases in terms of increasing the license fees? Mr. Bell said they are willing to pay their fair share. It is their feeling that they are paying an adequate share. Mayor Johnson: Are they willing to pay an increased amount? Mr. Bell: It depends on where the increase is. The position they are taking is that they are paying adequately now. It is fair to say that they feel they are paying their fair share. Administrator Achen stated he presented some alternatives last Tuesday and Mr. Bell replied that it still reads a substantial increase. Mayor Johnson: How much real estate property taxes do they pay? Let me tell you what it is. $3050 which includes fire, police, etc. The point is that you are paying for the services through the license fee not through real estate taxes. The police department have told us that many of the most difficult law enforcement problems have arisen from the hospitality industry in the city. Some way we have to recognize that facet. Maybe we are overbuilt. People are coming in from other suburbs which is not always desirable. Our police department has to deal initially with these people. You have to begin putting this into perspective. Councilman Baumgartner: You keep referring to policemen. Recently a number of assault cases have wound up in court and we have to pay a retainer to our lawyer. Mr. Bell: In a city of 16,000 there is going to be crime. One of the functions of the Council is to provide police and court facilities. Mayor Johnson asked the Council for other comments. Councilman Shelquist: We wouldn't need a third patrolman for four hours around the closing hour of the liquor establishments. We could probably go to just two full time men. Mr. Bell: You wouldn't want to provide less even if Yor. didn't have the liquor establishments. 16,000 people need the services of 11 officers. Less than that would be unfair to the citizens. Councilman Shelquist: I disagree that we would not reduce the size of the police force if it wasn't for the liquor establishments. Councilman Baumgartner: The shopping centers, etc. is another area that will be considered, but one step at a time. Mayor Johnson: The licenses are going to go up. We will listen. But we have got to assess for the increased costs. How do you do it? Some will go to property owners, some to your clients by increased license fees. What is the best way to do it? Do you feel that each one of your clients pay an equal license fee? City Council minutes Mr. Bell: Establishments not all the same. Peak hours at different times. There should be a difference. Perhaps this could be deferred. If you are considering a cabaret increase, the number of people should have -a bearing. Square footage, seating capacity, etc. would be a guide. Administrator Achen explained the difference between the two proposals: the original was to increase the on-sale from $3800 to $4500 flat fee, restaurant to $100, cabaret square footage $1000 to $3500 approximately. Takes into consideration $100 restaurant fee which is not very high compared to the level of services. Increases this to $400 tonight and it eliminates cabaret and incorporates it in with the on -sale liquor, dance hall not in proposal. Proposal tonight eliminates the original proposal. Mayor Johnson stated: 4600 square feet would pay $4700; 6200 square feet would pay $6350; 7200 square feet would pay $7100, includes restaurant and intoxicating liquor and cabaret. Off sale would be additional, etc. Mr. Bell: If you have a bowling alley how much of that would be access? Administrator Achen: This was considered. Lanes would not be. There is a maximum of $10,000. Mr. Bell: I will mention again that if possible we would like this decision deferred. Attorney Meyers: I do not find any authority for establishment of license fees for shopping centers or apartment buildings. The Council was polled: -9- January 26, 1976 Councilman Hodges: Take time to review these ordinances again to make sure this is what we want. If we don't have income how can we operate? We have a responsibility to our citizens with the type of establishments we have here. Cannot back down. Still like to look it over. Councilman Baumgartner: Have to digest ir. Bell's memo and the comments. Make a decision later. Councilman Pickar: Request for deferment is not unreasonable. See that there is going to be an increase but exact amount isn't set yet. Councilman Shelquist: Reasonable both for us to give some additional consideration and allow them to digest new proposals. Will have to make a decision but not right now. Have the admini- strator take into consideration scaling restaurant licenses based on hours of operation, etc. Maximum annual fee for the liquor and cabaret fee is $10,000. Don't agree with this. I feel that way because at this point the businessmen probably feel they are here and are at our mercy. Based on the expectation that City Council minutes January 26, 1976 there is going to be two bowling alleys going in and have to probably hire another policeman, so not willing to make $10,001) be maximum fee. My reason for making this last statement is that I feel you should be forewarned of my thinking as you make your plans. Mayor Johnson: We can lay this over as far as I am concerned. Thank you for coming. We do have to take some action though. In order to give you plenty of time, let us set the agenda for February 9 as a continuation of the subject matter. I also want to thank the businessmen for allowing Administrator Achen to sit down with you. He is acting in our behalf, is merely doing what we ask him to do. Mayor Johnson read a note from the girls of TOPS thanking Mounds View and presented Mounds View with a box of doughnuts. Mayor Johnson asked Administrator Achen to get together with the businessmen and make sure you are consistent on numbers. Further, would you prepare for us a memorandum expressing and articulating your statements. Calls to entertainment establish- ments are serious type calls. I would like a run down as to how serious the calls are. Administrator Achen stated that he had received from the State Department of Public Safety a letter indicating that the business of Bill Gillespie has not been licensed by the State. Mr. Gillespie stated that the corner was licensed until two years ago. He pled ignorance of the law as he didn't realize you had to have a license for each county. He has one in Bethel. He further stated that he has cleaned up his lot, moved the bus and wants to apply for the license with the intent of keeping it a "lot nicer Mayor Johnson stated that they would approach the problem of a used car lot on that corner as the Council did for the one on Spring Lake Road, which had a special use permit enumerating the things that had to be done. After that was signed a special use permit was granted. If you want to apply for a permit you should make application to the city and negotiate with the administrator as to the requirements of having a used car lot on that corner. Some of the requirements would be that a permanent building be put on the lot, adequate lighting, draining and buffering. Also some kind of screening to keep all of the junk out of the sight of the neighbors. That is the way you would proceed. Mr. Gillespie: I am willing to cooperate but woiild like 60 days extension on my license. Mayor Johnson: Meet with Administrator Achen and at least begin putting down on paper so we understand what you are talking about and it can be brought up at the next agenda meeting. City Council minutes -11- January 26, 1976 Councilman Hodges: Would go along with a temporary license if he comes in and is really sincere. I think he realizes he has got to do something. Councilman Baumgartner stated that until the State gives you a license we can't give you one. He replied that the State will give him one. Councilman Baumgartner said that he has heard about your building, etc. for 3 or 4 years and it has never happened. After we cracked down you finally moved the cars. As far as I am concerned 30 days is it. Bob Schmidt, Control Data employee, stated that he has cars on Mr. Gillespie's lot on consignment and if the lot was closed this would be most difficult for him. Councilman Pickar: Can probably see the issuing of a temporary license. Something definite would have to be worked out with the administrator before he comes in. Councilman Shelquist: Is it your intent to start repairing cars or what? Mr. Gillespie: Get one stall and an office over here. Realize I have to have something here. Councilman Shelquist: You wouldn't move your cars off the lot because of weather. How is summer different if you have no place to go then? Mr. Gillespie: In the winter you have income tax money coming back and they may buy. Councilman Shelquist: At the last meeting we were told that the bus couldn't be moved. Now they are moved. Why will it take a year to build the building? Mr. Gillespie: Have to wait for the summer. Go through the planning stages and get the permit, etc. Councilman Shelquist: I am in favor of granting renewal on the basis of 90 days and an additional renewal after that based on negotiations with the administrator, presentation of plans, and by June or July a structure completed. You cannot rely simply on his statements. Mayor Johnson asked how many cars he has sitting in his yard, he replied probably 5 -7 and the Mayor stated that he had counted nine. Mr. Gillespie explained these belonged to his children. Mayor Johnson stated that he would go along with perhaps a recon- sideration of an extension from the police department issuing tags until February 23. As far as being able to do business on the lot I would say no. I want to see a negotiated contract before you do sell cars. When we get this accepted then I would be willing to consider a new license. I make a motion that we reconsider the length of time in which the police department is not to issue tags to any cars that remain on the City Council minutes -12- January 26, 1976 lot after February 12, but that the date be extended to February 23, but that no business be done off the lot during this period of time. This motion was seconded by Councilman Shelquist. Administrator Achen suggested this matter be considered by the Planning Commission which meets February 25. Mr. Gillespie stated that the Council gave him 90 days, and he will go to the Planning Commission. Council may cancel his license then if he doesn't get the building built. Councilman Shelquist stated that he was not out of business since he could still sell his cars from his lot in Bethel which is the only place he is .licensed by the State to sell from. A vote was called for and the motion carried 5 ayes MSP (Johnson- Shelquist) that the Council instruct the police department not to issue any tags until February 23 to give Mr. Gillespie time to get the cars removed from the sales lot and in the meantime to negotiate with the city administrator to secure a developmental contract for the operation of a used car lot on the corner of Silver Lake Road and Highway 10. MSP (Pickax- Johnson) to amend the motion to extend the period of time to March 8 in order to provide time for this matter to be considered by the Planning Commission at its February 25 meeting. 5 ayes MSP (Johnson- Hodges) to stipulate that Mr. Gillespie be give;i until March 8 to remove the cars as opposed to prohibiting police department from issuing tags for unlicensed cars, etc. on the sales lot. 5 ayes Mayor Johnson asked for the vote on the main motion as amended. It carried. 5 ayes Administrator Achen stated that the deadline for the Planning Commission agenda is Fe!u ry 18 so Mr. Gillespie should meet within the week and begin discussing what should be included. Dale Magnuson, who is the development consultant for the Launching Pad Supper Club owners, requested a rezoning from R -3 to B -3 to accommodate the parking that is required for their proposed bowling alley addition. MSP (Johnson- Hodges) to schedule a public hearing for 8:30 p.m. February 23 for the purposes of considering a rezoning on the premises. Mr. Magnuson said that they would have a pre public hearing with the neighbors. A problem that they do have is that the Planning Commission wants them to delete one of the driveway exits on County Rd. H -2 and the fire marshall will not allow this. The have talked to Rice Creek Watershed regarding a drainage plan, and they want them to use crushed rock for about 6 months until the city's storm drainage plans are completed. City Council minutes -13- January 26, 1976 Mayor Johnson continued with his motion: that the developers allow the city to place a sign on the premises denoting the property is the subject of a rezoning request and furthermore, that an adequate planning deposit be posted by the developers with the city to cover the expected costs to be incurred in the process of this development. Councilman Shelquist stated that the Planning Commission was only recommending to the Council that they set a hearing for rezoning. When additional plans are available, this matter should be referred back to the Planning Commission. Mayor Johnson told them that a subdivision of the land will be necessary before rezoning and that the present owner of the land must request rezoning. He noted that a park dedication may be necessary and the developers should be aware of this. Administrator Achen told them that if they would give him a date and a time for their neighborhood hearing he will include that when the city sends the legal notices. Councilman Baumgartner wanted it checked and clarified as to whether they would need a subdivision before this is done. A vote on the motion was called for and it carried. 5 ayes Mayor Johnson stated that rezoning of the property should not be considered by the applicants as approval for the development. MSP (Hodges Baumgartner) Resolution #708 to reapportion the assessments of Gene and Kathleen Schouweiler subdivision. MSP (Shelquist- Baumgartner) Resolution #709 to reapportion the assessments of E. J. Marlene Danielson subdivision. MSP (Hodges Shelquist) to approve Resolution #711, "Approving Continued Joint Representation in regard to International Union of Operating Engineers, Local No. 45 MSP (Shelquist- Hodges) to approve Resolution #712 requesting Ramsey. County Board of Commissioners to authorize participa- tion of Mounds View City employees in the Ramsey County Health Welfare Plan. 5 ayes 5 ayes 5 ayes 5 ayes Administrator Achen presented a proposed revision of Chapter 93, Public Health Housing Code. Council took this under advisement and asked that it be brought up at the next agenda session. MSP (Hodges Shelquist) to approve the licenses as presented, including D.W. Construction, waiving the license fee for Red Oak P.T.O. fund raiser and the Cub Scout Pack 167. 5 ayes City Council minutes ADMINISTRATOR ACHEN'S REPORT -14- January 26, 1976 Administrator Acher presented the bills for approval. In the December 1975 payables there is a total disbursement of $11,768.61 (checks #11776 11792). The January 30, 1976 payables are general account checks #11775, 11793 11880, payroll account #1233 1235, payroll checks #3260 3303, transfer check #11879 transferring $16,780.38 from General Fund; $1,242.81 from Water Fund; $1,962.56 from Sewer Fund to pay gross pay of January 30, 1976. Total January 1976 disbursements $48,256.75. MSP (Pickar- Hodges) that the bills be approved as presented. County reviewed City's second request for Long Lake /Hillview stop sign again and rejected it, stating that the type of accidents there do not relate to conditions that might be improved by a 4 -way stop. Two applications were received for vacancies on Lakeside Park Commission and Planning Commission: Duane BeL er for Lakeside Park Commission and Richard Schonhardt for the Planning Commission. Chief of Police has submitted a request to advance nine days of sick leave to Carol Waide. MSP (Johnson- Hodges) to grant Carold Waide sick leave advance of nine days as provided in Mounds View Municipal Code 6.26. 5 ayes A petition has been received from Pleasant View Drive residents in opposition to proposed street /drainage improvement. The Mayor directed the staff to notify Fridley that Mounds View is not presently interested in the project and that storm drainage study is underway to evaluate needs. MSP (Johnson Pickar) to authorize staff to deposit idle funds in savings account with Firsi: State Bank of New Brighton whenever such will produce a greater yield on idle cash and that any such monies so deposited be protected by adequate pledge of government securities by the Bank. 5 ayes MSP (Hodges Baumgartner) to approve the increase of two voting members on the Safety Committee. 5 ayes MSP (Johnson- Hodges) to approve the appointment of Rita Bialke and Swen Thelin as janitors to be paid at $3.50 per hour each. 5 ayes MSP (Johnson Shelquist) that we designate the First State Bank of New Brighton as the official depository for the HUD grant and that we authorize signatures of Administrator Achen, the accountant Thomas Tveit, the Mayor and the Acting Mayor and that all checks be signed by at least one councilman. 5 ayes City Council minutes Administrator Achen stated that no bids were received for the sale of the police vehicle, so the vehicle has been shown at a wholesale auto auction. A private party may be willing to pay the price we are asking. Attorney Meyers stated that when such is done Council should ratify the sale. Administrator Achen info_med Council that home builders were having installing sewer connections on new Sunnyside, because the stubs are about 8 feet below the water table. MAYOR JOHNSON had no report. COUNCILMAN HODGES Bicentennial Committee got the Lion's Club to rind them an electric stove. They should be talked to. Administrator Achen will check into this. COUNCILMAN SHELQUIST -15- January 26, 1976 He talked to Paul Fedor and Nancy Burmeister and they would like to be reappointed to the Planning Commission. MSP Shelquist- Hodges) that Paul Fedor and Nancy Burmeister be reappointed to the Planning Commission for another 3 -year term. 5 ayes Mayor Johnson stated there is one application for the vacancy on the Planning Commission, and Allen Zepper has applied previously. He directed staff to arrange an interview for 8:30 p.m. on February 2 at the agenda meeting for Richard Schonhardt. Councilman Baumgartner noted that walk lights are being installed with the County Roads H -2 I semaphores and that this might help pedestrians cross Highway 10 more easily. Councilman Shelquist asked Engineer Bearden to check whether these will have pedestrian activators on the medians as wP11 as at the roadside. COUNCILMAN BAUMGARTNER Acknowledged receipt of $100 from Mrs. Diane Cline, President of the Mounds View Mrs. Jaycee Club, to be used for a bar -b -q pit in the City Hall complex. A letter of appreciation is being sent. On February 12, 1976 at the City Hall, there will b<: a meeting at 7:00 p.m. on Woodcrest Park development and at 8:30 p.m. on Greenfield development. February 26 is the regular Parks Recre- ation Commission meeting and trails will be the prime topic. He also asked for volunteer bricklayers for the bar -b -q pit. Administrator Achen was asked to check into the $200 collected in memory of Mrs. Donovan Wendt some time in the past which also was t he used for a park fireplace. City Council minutes -16- January 26, 1976 Councilman Baumgartner recommended that someone should look at the ownership and platting of the bowling alley. Possible a subdivision will have to go through. COUNCILMAN PICKAR suggested holding off any appointments at Lakeside Park as it appears we will have enough. Skate races at 2:00 p.m. on February 1. He inquired if anyone was following through on awards for the banquet. MSP (Hodges Pickar) to adjourn at 1:20 a. m. Respectfully submitted, 'I)'`ra)cki Mark Achen Clerk- Administrator Memorandum and Argument to City Council City of Mounds View Ramsey Count, Minnesota January 26, 1976 From; John G. Bell Attorney at Law In behalf of the Anchor luau, Donatelle's, Launching Pad, and Mermaid, Liquor Establishments in the City of Mounds View. Re: On sale liquor and caberet licenses. Gentlemen: There is no questions but the licensing of certain businesses in a municipality is an exercise of the police power which has been delegated to municipalities by the legislature. The poverto license, however, is not a power to tax. The service for which a City may be reimbursed by a license fee must be reasonably related to the police power function of inspection, supervision, and regulation. While there is no question that the municipali has within its authority to set a fee for a license, a reasonable license fee should be charged and should be such as to cover the expense of issuing the license and the services and other expenses directly or indirectly arising out of the issuance of the license. Th amount of the license fees should be limited to the cost of issuing the license and the probable expense of police supervision of those engaged in the business to be licensed. A charge or fee to defray the cost of a police power regulation need not be so restricted in amount so as to eliminate a reasonable revenue, incidental to the issuance of the license However, the revenue aspect of a license fee should be incidental and the issuance of a license should not be for the purpose of raising revenue, for then it becomes a tax. While there is a presumption that in exacting a license fee, a lawfull purpose was intended by the municipality, a license fee may so far exceed the reasonable expenses incurred for police power purposes as to be a revenue measure in disguise, and therefore invalid. There has been no showing that on sale liquor establishments or caberet establishments in the City of Mounds View have by their operations increased the costs for the City of Mounds View in regulating their establishments in any way other than general increase in costs for all government services. One might expect that on sale liquor or caberet establishments would require a more extensive use of the police department than some other regulated businesses, but the fact is that the records of the Mounds View Police Department reveal that the Mounds View Square Shopping Center has had a greater need for police department services than the liquor or caberet establishments. Information obtained by my clients would indicate that out of a total of 2,836 police runs in 1975 only 120 were to the liquor and caberet establishn_..:n +.Q amounting to 4% of the total. The minutes of the December 8, 1975 Mounds View City Council Meeting, in the course of discussing the City's current financial crunch, would blame inflation, state surplus funds as not being shared with municipalities, and a 18% increase in police salaries. Such a find does not singl out as the culprit in increase City costs the liquor business, the caberet business, or for that matter the restaurants. Liquor and caberet and resturant establishments as well as other businesses are entitled to municipal services since they pay a real estate tax. In the absence of showing a need for a regulation of an industry to protect the public health, safety, and welfare and morals, no license fee at all is justified. While licensing is a function of the City and the exercise of the police power, license fees should be commensurate with the cost involved in the licensing, and fees substantially in excess are actually a tax. It would thus appear that the City is attempting to use licensing as a device to raise revenue which is properly to be raised by ;axes, The Council has a duty to exercise limitations on its licensing power lest the ;Am er be used as a power that could destroy a business. Taxes are spread out, licenses single .)U 1)11LiCUlar group. There is no question that the liquor establishments are such as to require regulation and certainly a reasonable license fee is justified, and my clients certainly do not object to paying a license fee, or for that matter, doing whatever else is necessary as responsil business establishments within the City, and to that end, engage in self regulating at their own expense. Cons idering the population of the City of Mounds View, that is approximately 16,000 people, and a police department having 11 men including the chief, it would certainly appear that no extra policemen are on the police department because of the presence of a hospitali ty industry in the City, thus the police department is probably at a minimum; man power level to provide adaquate services to the people of Mounds View, even if there were no liquor or caberet establishments at all. In sum and substance, there has been no showing that regulating the liquor and caihcrel business in Mounds View, justifies an increase in cost in license fees as proposed. It is obvious that there is a need of the City for raising revenues, that can't be obtained by property taxation. It would thus appear that the substantial increase in the license fees is due to the financial pinch of the City looking for additional revenue from a source where existing license fees are adaquate to cover the cost of regulation. Increased police salaries in and of itself does not justify raising present liquor and caberet licensing fees. The answer probably lies in new licenses where there are needs for regulation greater than homes or other general businesses. An example of such businesses that could very well need additional regulation or call upon the City for additional services over and above'. the norm, is such businesses as shopping centers or apartments. If there are some areas where the fees under consideration are low, commensurate with the cost of regulating, this would probably be on restaurants and possibley on the caberet fees, but then, if there is to be an increase fee on restaurants or caberets then this should not be a duplicated license fee, in other words, such as an on sale liquor establishment and restaurant together, or a liquor establishment and a caberet, or an establishment having all three. If restaurant and caberet fees are found to be low, then some means of`air apportionment should be used such as size or seating capacity or hours of operation. It should also be pointed out that the on sale liquor establishments pay substantial real estate taxes, and contribute a substantial payroll within the City of Mounds View for some 240 employees. The council should also bear in mind that the on sale liquor establishments do have com- petitors in neighboring cities, so that a licensing fee should not be such as to put Mounds View Business establishments in an unfavorable competitive position as to its competitors in neighboring cities. The purposed increase would have the liquor and caberet license fees for Mounds View the highest per capit6lJ.i3ence fees in this area. On sale liquor establish ments are entitled as tax paying citizens within the City to have the council consider the economic effect of the licensing fee on its business citizens while the City also considers a means for acquiring the necessary increase in revenues to provide the services which the citizens expect the City to provide. Thank you for your consideration. JGB: mmp