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HomeMy WebLinkAboutMinutes - 2004/06/28APPR01~' • PROCEEDINGS OF THE MOUNDS VIEW CITY COUNCIL CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA Regular Meeting June 28, 2004 Mounds View City Hall 2401 Highway 10, Mounds View, MN 55112 7:00 P.M. • 1. MEETING IS CALLED TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL: Linke, Quick, Marty, Stigney, and Gunn 4. APPROVAL OF AGENDA Monday, June 28, 2004 City Council Agenda. City Clerk/Administrator Ulrich requested to add a fire subdivision item to l OH. MOTION/SECOND: Stigney/Marty. To Approve the Monday, June 28, 2004 Agenda as amended. Ayes - 5 5. None. 6. None. 7. PUBLIC INPUT Nays - 0 Motion carried. CITY BUDGET QUESTIONS AND COMMENTS SPECIAL ORDER OF BUSINESS A. Mayor's Proclamation Recognizing Participants in the 2004 Minnesota Technology Education Association Supermile Challenge. Mayor Linke read a Proclamation which congratulated Mounds View students for winning first place out of 94 competitors in the 2004 Minnesota Technology Education Association Supermile Challenge competition in Brainerd. He stated each of the students involved would receive a copy of the Proclamation. Mounds View City Council June 28, 2004 Regular Meeting Page 2 ~~JJ ~J • B. Senator Betzold and Representative Bernardy to Address the City Council Regarding the Legislative Session. Senator Betzold and Representative Bernardy gave an overview of the legislation that did and did not pass during the session. Mayor Linke stated a citizen had complained to him that schools did not notify parents when they became aware of a sex offender moving into their neighborhood and asked whether there was a reason why schools could not do so. Representative Bernardy stated she would check into it, but she didn't know of any reason why the schools couldn't notify parents of an upcoming public meeting. She also stated it was the province of the police department to notify citizens that a sex offender was moving into the community. 8. JUST AND CORRECT CLAIMS. Council Member Marty inquired whether the third item from the bottom of page 10 was the final bill. City Attorney Riggs stated there has been no appeal filed as of yet, so if everything moves forward, it was his hope the City should be properly dismissed from that the matter. MOTION/SECOND: Marty/Stigney. To approve Just and Correct Claims as presented. Ayes-5 Nays-0 9. CONSENT AGENDA Motion carried A. Licenses for Approval B. Resolution 6261 Providing for the Competitive Negotiated Sale of $2,245,000 General Obligation Improvement Bonds, Series 2004A, for the 2003 Street Improvement Project. C. Resolution 6277 Approving the 2004 Business Licenses. D. Resolution Approving Intent to Eliminate School Coordinator Funding from 2005 Budget. t E. Resolution 6290 Setting an Executive Session for July 12, 2004, at 6:00 P.M. to Review The Water Vulnerability Assessment Study. F. Resolution 6295 Approving a Contract with Springsted, Inc. for Continuing Disclosure and Arbitrage Rebate Services for the G.O. Improvement Bonds, Series 2004A. G. Establish a Special Joint City Council Meeting for Thursday, July 22, 2004, 6:00 p.m., at Blaine City Hall, to discuss Issues of Mutual Concern, Including Joint Fire Department Capital EquipmentBuilding Needs. Mounds View City Council June 28, 2004 Regular Meeting Page 3 • H. Resolution 6288 Approving Intent to Eliminate funding a New Brighton Police School Resource Officer at Irondale High School from the 2005 budget. I. Resolution 6291 Awarding a Contract for the Saw and Seal associated with the County Road H2 Street Improvement Project. J. Resolution 6292 Approving and Authorizing the Execution of a Letter Agreement with TKDA for the Groveland Park Building Replacement Project. Council Member Gunn requested to have Items D and H removed. Council Member Marty requested to have Items I and J removed. MOTION/SECOND: Marty/Quick. To Approve Consent Agenda Items A, B, C, E, F, and G. Ayes - 5 Nays - 0 Motion carried. C. Resolution Approving Intent to Eliminate School Coordinator Funding from 2005 Budget. • Council Member Gunn stated in 2000-2001 this was over $8,000. In 2001-2002, it was $7,500. In 2002-2003 it was a little over $7,000. In 2003, it was $7,500. For half of 2004 it was $4,812.50. MOTION/SECOND: Gunn/Marty. To approve the Resolution Approving Intent to Eliminate School Coordinator Funding from the 2005 Budget. City Clerk/Administrator Ulrich stated the City would still continue to pay school coordinator fees when they did use the school facilities. This action would just eliminate that portion where the City is not using the facilities at all. Ayes-5 Nays-0 Motion carried. H. Resolution 6288 Approving Intent to Eliminate funding a New Brighton Police School Resource Officer at Irondale High School from the 2005 budget. Council Member Gunn stated the Council had not discussed this item as of yet. Police Chief Sommer stated this contract is up for renewal at this time. He stated in the past approximately 20 percent of the cost of a New Brighton police officer was funded to work at Irondale High School as a school resource officer. He stated the fee was approximately $12,000. He stated that staff had been directed to reduce discretionary spending in the upcoming budget, and that this was one of the few areas that they had that would be considered discretionary spending and that is why he was presenting it to the Council for review. Mounds View City Council June 28, 2004 Regular Meeting Page 4 The Council discussed the DARE program and the school resource officer. • MOTION/SECOND. Sti ne /Ma To a rove Resolution 6288 and to waive the readin . g y rtY pp g Council Member Quick stated that having a school resource officer at the school keeps a damper on the students' activities and helps the police department keep on top of things. He stated passing this resolution would be shooting themselves in the foot. He stated the school resource officer nips things in the bud before they get out of hand. Council Member Stigney stated the school resource officer would still be there whether they helped to fund it or not. Council Member Quick stated he felt it was important that they do their share. Council Member Marty stated they were installing cameras in the hallways at Irondale. Council Member Gunn stated she felt they needed to contribute something and suggested perhaps cutting what they currently fund in half. Council Member Marty stated he would be amenable to the suggestion of cutting their contribution in half. • Mayor Linke stated if they voted against the motion, that would direct staff to work with New Brighten and the school district to come up with a new figure. Ayes-1 (Stigney) Nays-4 Motion failed. I. Resolution 6291 Awarding a Contract for the Saw and Seal associated with the County Road IJ2 Street Improvement Project. Council Member Marty stated that he liked the idea that they were going to come back and fix the road correctly because it had been a shoddy job. He asked when the work would commence. Public Works Director Lee stated the milling would be a two-day operation and would commence July 7a', and the paving would be a two and a half day operation. He stated notices would be sent to residents along County Road H2. Council Member Marty asked whether this would cost the residents anything. Public Works Director Lee stated it would not cost the residents anything, and it would also not cost the City anything additional. MOTIONJSECOND. Marty/Stigney. To approve Resolution 6291, Awarding a Contract for the Saw and Seal associated with the County Road H2 Street Improvement Project. Mounds View City Council June 28, 2004 Regular Meeting Page 5 Ayes-5 Nays-0 Motion carried. • J. .Resolution 6292 Approving and Authorizing the Execution of a Letter Agreement with TINA for the Groveland Park Building Replacement Project. Council Member Marty stated he had received calls regarding the high cost for simply a cinder block building. Council Member Stigney stated the staff report had said it was assumed the building would use the same general plans as the Hillview building with some minor modification. He asked why they were asking for $19,600. Public Works Director Lee stated he had made the assumption they could use the same plans over again, which was true to some degree. He stated there is going to be a lot of expense in terms of coming up with a site plan for the building and also doing the topographic layout for the building. He stated they would also be doing some minor modifications to the building, so they are looking at a lot of drafting time to redo the plans. He stated the City would not be realizing the cost savings that he had thought would be the case. He pointed out that they had budgeted $20,000 for this work. Council Member Stigney asked whether they had gotten estimates from anyone else. i Public Works Director Lee stated they had not. Council Member Stigney stated he had a problem with the cost of the project since the building was almost the same as the other one. Public Works Director Lee stated that if you took into account the inflation factor in the last four years, the cost of the project could have been more than $23,000 - $24,000. Mayor Linke pointed out some provisions in the contract that he found unsatisfactory, including TKDA stating they were only going to provide three hard copy sets of the contract documents. He stated he would like to see a list of what their principals and techs make. He stated the contract states the City would be charged for reimbursables, but it doesn't specify what the reimbursables are and what those costs will be. He stated in the general provisions for architectural, where it says, "outstanding professional technical services with a cost defined as amounts billed for extras, plus 10 percent," he would like to see that number at 5 percent. He also stated that the floppy disk they receive should be reusable for longer than 30 days. He stated he would like to get estimates from others. MOTIONfSECOND. Marty/Gunn. To disapprove Resolution No. 6292. Mayor Linke stated he would rather see a postponement of this item rather than rejection at this . time to let staff go back and discuss it. Mounds View City Council June 28, 2004 Regular Meeting Page 6 Council Member Marty withdrew his motion. Council Member Gunn agreed to the withdrawal of the motion. MOTION/SECOND. Stigney/Linke. To postpone a decision on Resolution No. 6292 to allow staff to bring further information back to the Council. Ayes-5 Nays-0 Motion carried. 10. COUNCIL BUSINESS A. 7:00 p.m. Public Hearing to Consider Resolution 6296, Approving the Modification to the Project Plan for the Mounds View Economic Development Project. Mayor Linke opened the public hearing. There was no public comment. Economic Development Director Backman stated the City and the EDA need to process an amendment of the City's Project Plan to incorporate revised development budgets and the possibility of development/redevelopment, especially for development likely to occur along the County Hwy. 10 Corridor. In addition, the Office of the State Auditor has ruled that the EDA may not purchase any land utilizing tax increment funds without first having amended the Plan to explicitly identify those properties it intends to acquire. The Project Plan is amended to include the following estimated public improvement and development costs: Land Acquisition $3,500,000; Site Improvements $1,800,000; Road Improvements $2,000,000; and Public Utilities $1,800,000. These costs are anticipated to be made or incurred within the Project and financed in whole or in part by tax increment or other available revenues of the EDA. The total estimated costs authorized to be expended ($9,100,000) are in addition to all other authorized costs. Economic Development Director Backman stated that Staff has created a map that identifies 211 parcels in the City of Mounds View that could be acquired by the EDA. The largest number of parcels (93) is found in the northwest quadrant of the City. The northeast quadrant has 43 parcels, the southwest quadrant has 22 parcels, the southeast quadrant has 45 parcels, and the far southeast quadrant has 8 parcels. From the current land use perspective, approximately 36 are commercial parcels and 175 are residential parcels. Blighted residential properties and underutilized residential properties are included on the map. Economic Development Director Backman stated that Staff has been working with Ehlers & Associates, the City's TIF financial advisor, to prepare the Project Plan modification. The Mounds View Planning Commission considered the Plan modification on June 16, 2004. The Commission adopted Resolution 762-04 recommending to the City Council approval and verifying that the modification is in compliance with the City's Comprehensive Plan. Mounds View City Council June 28, 2004 Regular Meeting Page 7 • • Economic Development Director Backman advised the Council that Staff recommends approval. Council Member Marty stated that the amount that is listed for land acquisition appears to be grossly low, and that if that is the case, then the site improvements would be low. He stated he didn't know how road improvements would be, but $3.5 million for just the business area along County Highway 10 is low. Economic Development Director Backman stated his response was that you don't always know what projects will be occurring out there, so there is going to be some variations. He stated it is challenging to predict these things. He stated the TIF advisors suggested this amount. He stated he would be reluctant to raise it above the $9.1 million. Council Member Stigney stated that page 9, last paragraph, conflicts with number 5 on the actual resolution. Economic Development Director Backman stated that they've delineated these various parcels to be included potentially to be acquired, but that doesn't mean they are going to acquire them. He stated he would like to make an addition to the resolution in at No. 1, second sentence, to say, "The Project Plan Modification is in response to a settlement dated May 14, 2003, with the Office of the State Auditor and Attorney General, which includes the listing of specific properties authorized for acquisition." Economic Development Director Backman stated he had received one comment from the public, and her concern was that when they do get to the projects, that they are compatible with the neighborhoods that are next to them. Mayor Linke closed the public hearing. MOTION/SECOND. Quick/Marty. To waive the reading and approve Resolution No. 6296, Resolution Adopting the Modification to the Project Plan for the Mounds View Economic Development Project, with the amendment as stated by Economic Development Director Backman to No. 1. Ayes-5 Nays-0 Motion carried. B. 7:05 p.m. Public Hearing to Consider a Variance and Conditional Use Permit Request for an Oversized Garage at 2208 Lois Drive. • Mayor Linke opened the public hearing. Planning Associate Prososki stated Michael Read is the property owner of 2208 Lois Drive, and he is requesting a variance and conditional use permit for an oversized garage. She stated this was brought before the Planning Commission on May 19th, and the variance was denied by the Planning Commission. She stated Mr. Read was exercising his right to appeal to the Council. Mounds View City Council June 28, 2004 Regular Meeting Page 8 • • She stated he wanted to add 26 feet on the west side of the existing garage, which would make the width 48 feet, which is 13 feet in excess of what is allowed by City Code. Planning Associate Prososki stated the applicant is wishing additional storage space, but the Planning Commission did not find sufficient hardship. She stated the applicant felt the proposed version was the best option rather than the alternative, both of which were shown in the report. She stated the Council could deny the variance and conditional use permit, approve it, or table the request. The applicant, Michael Read, stated he is an electrical contractor and needs more room to store equipment. He stated the neighbors had complained about his storing things in the yard. He stated most people don't notice his property because it is hidden by trees and hedges. He stated the Watershed District had approved this. Mayor Linke stated he agreed with the applicant that the garage wouldn't be intrusive, but if the Council approved this they would be setting a precedent for others, which they couldn't do. He stated Planning Associate Prososki had put together a very good report stating the pros and cons. He stated he would have to go along with the Planning Commission's decision. Council Member Many stated he agreed with Mayor Linke regarding setting a precedent by approving this, and he also could not find a hardship. Mayor Linke closed the public hearing. MOTION/SECOND. Linke/Many. To waive the reading and approve Resolution No. 758-04, a Resolution Denying a Variance fora 48-Foot Wide Garage to Allow for a Garage Addition at 2208 Lois Drive. Ayes-4 Nays-1 (Quick) Motion carried. Mayor Linke asked Council Member Quick if he wished to comment. Council Member Quick stated he thought what the applicant had suggested was the best alternative given the situation with the ditch on his property. C. 7:10 p.m. Public Hearing to Consider Resolution 6272, A Resolution to Consider an Off Sale Intoxicating Liquor License Renewal for ABC Liquor located at 2840 Highway 10. t City Clerk/Administrator Ulrich stated police reports had been included for all of the licenses this evening, and that there was nothing extraordinary that would give cause to deny the licenses. Mayor Linke asked what Code corrections they were talking about. Mounds View City Council June 28, 2004 Regular Meeting Page 9 ~J • City Clerk/Administrator Ulrich stated that was simply put in as a catchall to make sure that all the properties were Code compliant prior to the issuance of the licenses. Council Member Marty asked if the licenses were the same price for each establishment. Mayor Linke stated he thought it was based on the square footage. City Clerk/Administrator Ulrich stated he did not know and would have to check. He stated they were keeping track of the number of police calls associated with the 2:00 a.m. closing time, and when a year elapses they will take a look at the Code relative to the license fees to make sure they cover the police costs. Mayor Linke closed the public hearing. MOTION/SECOND. Gunn/Marry. To waive the reading and approve Resolution 6272, a Resolution to Consider an Off Sale Intoxicating Liquor License Renewal for ABC Liquor located at 2840 Highway 10. Ayes-5 Nays-0 Motion carried. D 7:15 p.m. Public hearing to Consider Resolution 6273, A Resolution to Consider an Off Sale Intoxicating Liquor License Renewal for Network Liquors located at 2354 West County Road H. Mayor Linke opened the public hearing. There were no public comments. Mayor Linke closed the public hearing. MOTION/SECOND: Marty/Gunn. To waive the reading and adopt Resolution 6273 as presented. Ayes -5 Nays - 0 Motion carried E. 7:20 p.m. Public Hearing to Consider Resolution 6274, A Resolution to Consider an Off Sale Intoxicating Liquor License Renewal for Jake's Sports Cafe located at 2400 Highway 10. • Mayor Linke opened the public hearing. There were no public comments. Mayor Linke closed the public hearing. Mounds View City Council June 28, 2004 Regular Meeting Page 10 • MOTION/SECOND. MartylGunn. To waive the reading and adopt Resolution 6274 as presented. Ayes-5 Nays-0 Motion carried. F. 7:25 p.m. Public Hearing to Consider Resolution 6275, A Resolution to Consider an On Sale Intoxicating Liquor License Renewal for Robert's Sports Bar and Entertainment located at 2400 County Road H2. Mayor Linke opened the public hearing. There were no public comments. Mayor Linke closed the public hearing. MOTION/SECOND: Marty/Stigney. To waive the reading and adopt Resolution 6275 as presented. Ayes-5 Nays-0 G. 7:30 p.m. Public Hearing to Consider Resolution 6276, an On Sale Intoxicating Liquor License Renewal for The Mermaid located at 220 Highway 10. Mayor Linke opened the public hearing. There were no public comments. Mayor Linke closed the public hearing. MOTION/SECOND. MartylStigney. To waive the reading and approve Resolution 6276 as presented. Motion carried. Council Member Gunn pointed out what a difference it has made in the number of police reports by closing the downstairs nightclub. Ayes-5 Nays-0 Motion carried. H. Consideration of Resolution 6289, Approving the Final Plat for the Hidden Hollow Major Subdivision 1. Consideration of Resolution 6298, Approving Lot Split. 6~ Planning Associate Prososki stated Pro Craft is requesting final plat approval for the Hidden Hollow Subdivision. She stated the park dedication fee of $40,767 is required by the resolution. Mounds View City Council June 28, 2004 Regular Meeting Page 11 • • She stated the resolution requires several other requirements to be completed prior to the City signing the final plat. She stated that the Council could approve the final plat, deny it, or table it. Mayor Linke asked whether they needed to approve the lot split prior to voting on Resolution 6289. City Attorney Riggs stated that they should. MOTION/SECOND. Marty/Gunn. To approve Resolution 6298, Approving Lot Split. Ayes-5 Nays-0 Motion carried. Council Member Marty asked whether they could approve Resolution 6289, or if they should wait for the lot split to occur first. City Attorney Riggs stated the Resolution they just adopted will allow the other closing to move forward, and then the closing with the City will take place later. He stated it was just a title matter, and he didn't see any hindrance in adopting the other resolution. MOTION/SECOND. Gunn/Stigney. To waive the reading and adopt Resolution 6289, Approving the Final Plat for the Hidden Hollow Major Subdivision. Ayes-5 Nays-0 Motion carried. I. Resolution 6293, Approving the Plans and Specifications, Waive the Public Improvement Hearing, Order the Project, and Set a Bids Date for the Hidden Hollow Street and Utility Project. MOTION/SECOND. Many/Gunn. To waive the reading and to adopt Resolution 6293, Approving the Plans and Specifications, Waive the Public Improvement Hearing, Order the Project, and Set a Bids Date for the Hidden Hollow Street and Utility Project. Ayes-5 - Nays -0 Motion carried. J. Consideration of Resolution 6294, Approving the Final Plat for the CVS Velmeir Addition Major Subdivision. Planning Associate Prososki stated that the necessary changes are laid out in the report, and that the corrected final plat will arrive to the City Hall tomorrow. She stated the only differences were changes in the easements. She stated Staff is recommending park dedication fees of $57,812.69. She stated a rezoning is also requested in conjunction with the request; however, the second reading will not occur until after the final plat is recorded with Ramsey County. Mayor Linke asked whether the applicants would like to comment. • Mounds View City Council June 28, 2004 Regular Meeting Page 12 MOTION/SECOND. Linke/Stigney. To waive the reading and approve Resolution 6294, Approving the Final Plat for the CVS Velmeir Addition Major Subdivision. Ayes-5 Nays-0 Motion carried. K. Second Reading and Adoption of Ordinance No. 740 to Amend Chapter 907.06 Entitled "Storm Water" in the Mounds View City Code. ROLL CALL VOTE. Mayor Linke stated he had received a phone call from Nicole Humphrey, who stated she was ill and couldn't attend, but that she would be opposed to having anyone coming into her home to do any inspections. Planning Associate Prososki stated that staff does not go inside to inspect unless they feel there is a health risk to the occupants of the home. She stated they only look at the outside of homes. MOTION/SECOND. Quick/Gunn. To waive the reading and adopt Ordinance No. 740 to Amend Chapter 706.06 Entitled "Storm Water" in the Mounds View City Code. ROLL CALL: Linke/Quick/Marty/Stigney/Gunn. Ayes -5 Nays-0 Motion carried. L. Second Reading and Adoption of Ordinance 741, an Ordinance to amend title 400 of the city Code regarding the Appointment and Terms of the Planning and Zoning Commission, Police Civil Service Commission, Economic Development Commission and the Parks and Recreation Commission. ROLL CALL VOTE. Mayor Linke stated he didn't know why the Council was involved with appointment the Chair Person. Council Member Quick stated they only had to ratify it, and that that is the way it's always been. Mayor Linke stated the sentence should read, "The City Council shall appoint a chair person." Council Member Gunn asked for clarification. Mayor Linke stated the sentence should read, "Based upon recommendation of the Parks and Recreation Commission, the City Council shall appoint a chair person." He stated that would be the change throughout the document; to remove the "and" and the "they". MOTION/SECOND. Linke/Gunn. To waive the reading and adopt Ordinance 741 as amended, • an Ordinance to amend title 400 of the City Code regarding the Appointment and Terms of the Mounds View City Council June 28, 2004 Regular Meeting Page 13 Planning and Zoning Commission, Police Civil Service Commission, Economic Development Commission, and the Parks and Recreation Commission. ROLL CALLS: Linke/Quick/Marty/Stigney/Gunn. Ayes-5 Nays-0 Motion carried. M. Banquet Center Operations/Requests for Proposals. City Clerk/Administrator Ulrich stated the item before the Council is to recommend that they go out for a request for proposals to replace the interim agreement they have with the Community Banquet Center Management and replace it with something for a longer period of time. He stated the Mermaid has been providing catering service to the MVCC banquet facility since entering into an agreement in November of 2003. This agreement is scheduled to expire at the end of 2004. City Clerk/Administrator Ulrich stated the interim agreement anticipated that sometime during mid 2004 that there would be a search for a new, more permanent catering service provider. In any event, the current interim agreement maybe terminated with 60 days written notice by either party. . City Clerk/Administrator Ulrich stated there were three options, including a private company leasing the facility from the City, individual private parties lease facility/provide owner caterer, or the city hires caterer/manager for the facility. He gave an overview of the experiences of New Brighton, Shoreview, and Maplewood operations. City Clerk/Administrator Ulrich stated there is a draft of a revised request for proposal included in the Council packets. The new RFP is an updated version of the one issued last year. Provisions have been added to increase the allocation of community time from "10 days" to "300 hours", and to provide fora $1,000 earnest deposit (rather than the $10,000 deposit last year used to buy out Elegant Thymes). A provision has also been added that the manager (i.e., the caterer) is responsible for the payment of property taxes. City Clerk/Administrator Ulrich stated if the Council approves, the RFP will be sent to a number of qualified catering firms for their consideration. RFP submittals are to be submitted by August 2, 2004. A final agreement is subject to review by the City Attorney and approval by the Council. City Clerk/Administrator Ulrich stated it is recommended the Council authorize staff to solicit proposals from caterers to provide service to the Mounds View Community Center banquet facilities as outlined in the draft RFP. This approach would be a straight lease arrangement and will provide for up to 300 hours of community space to be used free of change by local community groups. Mayor Linke stated they should find a way to cover the taxes of $12,000. Mounds View City Council June 28, 2004 Regular Meeting Page 14 City Clerk/Administrator Ulrich stated on page 3 it is stated that whoever is operating the facility will be responsible for the payment of all the property taxes during the contract period. Council Member Stigney stated on page 1, paragraph 5, they talk about the banquet center including 8,000, but it also includes 4,800 square feet of community education area, including three large meeting rooms, five offices, hallways, bathrooms, and separate entrance area. He asked whether they couldn't go out for RFP's with and without this to see what the interest is and what would benefit them more in marketing it themselves. Mayor Linke stated the 4,800 number is going to have to change. City ClerklAdministrator Ulrich stated they would revise that. Council Member Marty stated he wondered if they should look at options 2 or 3 more closely and possibly look for a caterer or a manager to manage it without leasing it to get away from the tax burden. Council Member Gunn stated that they would be responsible for the taxes, not the city. Mayor Linke stated he thought they should send the RFP's out to start the process, and that they can always make a change. MOTION/SECOND. Gunn/Quick. To authorize staff to send out RFP's for option one with amendment as noted. Ayes-5 Nays-0 Motion carried. N. Directing Staff to Develop a Revised Lease Agreement with the Twin Cities North Chamber of Commerce in the Mounds View Community Center. Economic Development Director Backman stated in December of 2003 the Mounds View City Council approved the current lease agreement with the Twin Cities North Chamber of Commerce. By January 1, 2004 the TCN Chamber had relocated from its offices in Fridley to the Mounds View Community Center. He stated the Chamber occupies 1,263 square feet of office space located in the western portion of the former Community Education area. The TCN Chamber pays a gross rent of $1,160 per month to the Mermaid, the Banquet Manager and Agent of the City. The Mermaid spent $10,000 on leasehold improvements to accommodate the Chamber. These included replacement of the carpet, repainting walls, installation of three work stations, desks and walls, etc. The term of the current lease runs for five years. Economic Development Director Backman stated recently Ramsey County has indicated that only the space controlled by the YMCA for park and recreation activities is exempt from property taxes (approx. half the building). He stated he had received correspondence which indicated that the County views the current agreements with the Mermaid as a lease by a for- Mounds View City Council June 28, 2004 Regular Meeting Page 15 profit agency and therefore subject to property taxes. The Chamber apparently is viewed as a qualified exempt entity, however, due to the structure of the lease the space is disqualified as exempt. Economic Development Director Backman stated to qualify for exempt status, two things must happen -the Chamber would need to lease directly from the City of Mounds View and the Chamber would need to file an application with the state by July 1, 2004. The Mermaid has indicated it would be willing to pay the city's legal fees to revise the lease agreement for the Chamber. The City's attorney indicates that it would be a fairly easy process to modify the Chamber's lease agreement. Economic Development Director Backman stated it is staff's recommendation that the City Council direct staff to develop a revised Lease Agreement, subject to changes by the City Attorney, between the Twin Cities North Chamber of Commerce and the City of Mounds View. Council Member Stigney asked whether in redrafting the contract if they could change any terms of the contract. Economic Development Director Backman stated the only change contemplated is that the payment would go to the city instead of the Mermaid. • Council Member Gunn asked about future bookings. Economic Development Director Backman stated that there is no obligation on their part for bookings going out to 200512006. City Attorney Riggs stated that that was correct. Economic Development Director Backman stated in the second to last paragraph it states that the exact amount of money paid to the City of Mounds View from the Chamber of Commerce would then be reduced off the amount of rent charged to the Mermaid. Council Member Gunn stated she did not go along with that, and that their contract was $6,000. Mayor Linke stated that that was correct, and he would want the City Attorney to look at that. City Clerk/Administrator Ulrich stated the option at this point is to leave it the way it is, and then the Chamber ends up paying the property taxes. He stated that the Mermaid has the rights to the Chamber's rent at this point as long as the city has the contract with them, and then the money belongs to them, so they couldn't unilaterally reduce it or change it or take money away from them. Mayor Linke stated there is no way he would want to reduce that $6,000 because he thought that was low to begin with. Mounds View City Council June 28, 2004 Regular Meeting Page 16 Economic Development Director Backman stated he is not prepared to look at a redraft of the existing Mermaid agreement. He stated it is not very complicated to redraft the one for the Chambers. Council Member Stigney asked the City Attorney to comment. City Attorney Riggs stated that the only way that it returns to a nontaxable status is if there is a direct relationship between the City and a nonprofit entity like the chamber. He stated that it's clear that if you leave it all alone, the Mermaid is responsible for taxation payments. If it's the Chamber, payment is made by the Mermaid. If it's the Mermaid, that payment is made by the Mermaid. He stated if they did nothing, it moves forward for the remainder of the year. Council Member Stigney stated if they are going to do a new contract, he would like to see something built in there for a cost of living adjustment rather than just signing on for flue years at a flat rate. Economic Development Director Backman stated that it actually does increase over time. He stated the rate is $1,160 from 2004-2005, and it goes up to $1,210 for 2006-2008. City Attorney Riggs stated that if they are looking for $6,000, it is $6,000. It's just that some of it is from the Mermaid and some is now directly from the Chamber. He stated it simplifies matters if the City would have a lease directly with the Chamber. Council Member Stigney asked if the Chamber could then apply for tax exempt status, and City Attorney Riggs answered yes. City Clerk/Administrator Ulrich stated there would be a year delay, until July 1 of next year, where the City would have that tax liability. Mayor Linke stated he would support revising the lease. He stated that they are still only getting the $6,000, but overall they would have control of that area then. MOTION/SECOND. Linke/Gunn. To authorize staff to revise the lease agreement with the Twin Cities North Chamber of Commerce and to negotiate with the Mermaid. Council Member Stigney asked whether staff or the City Attorney had any additional comments as to where they were going and whether it sounded feasible and practical. City Clerk/Administrator Ulrich stated he was just asking the City Attorney whether this would give the Chamber enough to get the exemption by July 1St City Attorney Riggs stated there were various provisions in Dan Hall's letter that they hadn't agreed to, so really they were negotiating that section still obviously, and that is the way he was taking it, and he thought that that was what they meant. Mayor Linke stated that is what he meant. Mounds View City Council June 28, 2004 Regular Meeting Page 17 ~~ Council Member Quick stated his understanding was that all of this discussion had come about because of the change in classification by Ramsey County for their tenant. Mayor Linke stated it was because of the tenant. Council Member Quick stated the public needs to know that this is an eleventh hour kind of situation that Ramsey County had put them into because they had just received notification dated June 18th Mayor Linke stated the first one was May something. Ayes-4 Nays-1 (Marty) Motion carried. 11. APPROVAL OF MINUTES A. Executive Session June 14, 2004 (will be presented on day of this meeting) • MOTION/SECOND. Marty/Gunn. To approve the June 14, 2004 Executive Session Minutes. Ayes-5 Nays-0 Motion carried. B. City Council Minutes June 14, 2004 Council Member Marry stated under Public Input, paragraphs 1 and 3, the name should be spelled Dennis "Hammes." On page 2, paragraph 4, the name should be spelled Dave "Jahnke". On Page 10, paragraph 4, again Dennis "Hammes", and on paragraph 14, again Dave "Jahnke". On page 11, first paragraph under (I), Kurt should be spelled with a K. Council Member Marty also stated he wished his comments to be included under No. 7, Resolution of Appreciation for Greg Johnson. MOTION/SECOND: Quick/Marty. To table approving the City Council Minutes of June 14, 2004 until the next meeting. Ayes - 5 Nays - 0 Motion carried. 12. REPORTS A. Reports of Mayor and Council. Council Member Marty stated the Festival in the Park golf tournament is August 14`t', and Festival in the Park is August 22°d . B. Staff Mounds View City Council June 28, 2004 Regular Meeting Page 18 • Planning Associate Prososki stated that she and Council Member Gunn attended the joint city council work session for the cities of Mounds View and Arden Hills on June 17~'. She stated they had discussed possible changes to the interchange system between State Highway 10 and Interstate 694. She stated it is very important to Mounds View because it did include the possible closing of the direct access from County Road 10 to 35W. She stated one of the proposals was to direct traffic from County Road 10 to an access on County Road H to get to 35. She stated she attached exhibits that were provided by MnDOT and their overall plan to the staff report. Mayor Linke stated he had spoke with Mayor Wells of Spring Lake Park, and he is concerned that if County 10 is cut off from 35, it's going to drastically affect what they do in their tunnel. Planning Associate Prososki stated that Shoreview would be included in the future meetings because the County Road I interchange greatly affects them. The Council discussed the exhibits provided by MnDOT. C. City Attorney • • City Attorney Riggs stated he had received correspondence from the Attorney General dated June 23`d, which he distributed to the Council members for their information, and stated they could discuss it at a future meeting. 13. Nezt Council Work Session: Tuesday, July 6, 2004 Negt Council Meeting: Monday, July 12, 2004 14. ADJOURNMENT Mayor Linke adjourned the meeting at 10:06 p.m. Transcribed and recorded by: Sheree Theobald Timesaver Off Site Secretarial, Inc.