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HomeMy WebLinkAboutMinutes - 2025/03/03APPROVED PROCEEDINGS OF THE MOUNDS VIEW CITY COUNCIL CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA Special Meeting March 3, 2025 Mounds View City Hall 2401 Mounds View Boulevard, Mounds View, MN 55112 6:00 P.M. 1. MEETING IS CALLED TO ORDER 2. ROLL CALL: Clark, Gunn, Lindstrom, Meehlhause and Smith NOT PRESENT: None. 3. APPROVAL OF AGENDA A. Monday, March 3, 2025, Special City Council Agenda. MOTION/SECOND: Gunn/Smith. To Approve the Monday, March 3, 2025, special agenda as presented. Ayes – 5 Nays – 0 Motion carried. 4. COUNCIL BUSINESS A. Resolution 10069, Memorandum of Understanding with MN Roots. City Administrator Zikmund requested the Council consider a Memorandum of Understanding with MN Roots. He discussed how the application period was now open. He explained the fee for an application with the State was $2,500. Buck McCalpa, MN Roots, stated on February 18, 2025 the Office of Cannabis Management (OCM) offered guidance for municipal applications. He explained there were three types of cannabis licenses and those included municipal, open market and tribal government licenses. He reported he would be working with the City to submit a municipal cannabis retail license. Once this license was approved, a rules process would be held by the State and a licensure phase would undergo between MN Roots and the City of Mounds View. He indicated the City’s application had to be submitted by March 14, 2025. He noted he has found a site for the proposed municipal cannabis retail shop, but stated he could not disclose the location at this time. City Administrator Zikmund reviewed the terms within the memorandum of understanding in further detail with the City Council and asked for comments or questions. Mounds View City Council March 3, 2025 Special Meeting Page 2 Mayor Lindstrom asked what amendments could be made to the MOU. Counselor Libby reported the MOU could become more detailed. She commented on how she did not want get too far ahead of the State, given their lack of guidance at this time. Mayor Lindstrom stated he was aware there were other competitors out there trying to work with municipalities. Ms. Libby reported this was the case, noting she was not aware of any city that was trying to pursue a municipal license on their own. Mayor Lindstrom opened the meeting for public comment. Brian Amundsen, 3048 Woodale Drive, questioned how much due diligence the City has done with respect to municipal cannabis. He understood the Council viewed this partnership as a revenue source. He discussed how the City opted not to pursue a municipal liquor store in the past and he hoped this was out of a moral obligation. He was of the opinion it was not morally right for the City to be getting into the cannabis business. He stated Great White’s LLC was established in July of 2022, but in March of 2024, its license status was terminated. He questioned why the City was choosing to partner with this company given that they could not properly file for an active status with the State. He reported if the OCM didn’t have proper guidance available, perhaps the Council should wait to take action on this item. Mayor Lindstrom closed the meeting for public comment. Ms. Libby explained if you do not renew your business license every year the State now dissolves businesses. She indicated she was uncertain what happened with Great White, but they were caught and now the business was on a schedule to have their license renewed. She reported now was the time to take action because there will be no extensions or window openings in 2025 or 2026. She commented no new applicants will be brought in until the OCM feels comfortable. She discussed how community crime and drug use was going down in State’s that legalize cannabis because people were using products that were regulated. Mayor Lindstrom stated he believed cannabis is a net positive being legal and potentially would take away from other treatment opportunities. He explained he trusted the City Attorney to work out the minute details going forward. He reported cannabis would be sold in Mounds View one way or another going forward. From a financial standpoint, he explained the City had not spent any money to date. He commented further on how the municipal cannabis would provide a new revenue street for the City, which would be beneficial in this tight economy. He stated he would support going forward with the municipal cannabis license. City Administrator Zikmund explained staff met with Joni, along with MN Roots and also explored the Red Pine Group. He added that these are the three major players in the Twin City that they are aware of at this time. He stated the agreement with MN Roots had a 60/40 revenue split while the Red Pine Group was proposing a 75/25 revenue split. He noted Joni had not provided a revenue split option for the City. He reported each vendor had ensured there would be no cash outlaid on the City’s behalf up front. Council Member Gunn asked if a store could be up and running in 18 months. Ms. Libby reported Mounds View City Council March 3, 2025 Special Meeting Page 3 she could have a shop up and running quite quickly once the State’s had regulations in place. Mr. McCalpa commented on the timeline that was followed for his medical marijuana establishment. Council Member Gunn questioned how many employees would be working at the municipal cannabis shop. Mr. McCalpa anticipated there would be 10 employees at the shop in Mounds View. MOTION/SECOND: Gunn/Clark. To Waive the Reading and Adopt Resolution 10069, Approving a Memorandum of Understanding with MN Roots regarding operation of a municipal cannabis retail store, authorizing the City Administrator to submit the cannabis business application and authorizing payment of the $2,500 application fee. Mayor Lindstrom reported the City would be incurring an expense for the application fee. Ayes – 5 Nays – 0 Motion carried. B. Resolution 10071, Approving a Professional Service Agreement with ARVIG to Install Network Fiber in the Community Center for the Mounds View School District. Public Works/Parks and Recreation Director Peterson requested the Council approve a professional service agreement with ARVIG to install network fiber in the Community Center for the Mounds View School District. He explained the Mounds View School District was currently renting the Community Center for PSAT and advanced placement testing. He noted all testing must now be done online, which has led the City to pursue a fiber network at the Community Center with ARVIG. Staff commented further on the proposed installation and recommended approval. Council Member Meehlhause asked how much the school district would be investing in the fiber installation. Public Works/Parks and Recreation Director Peterson explained he was uncertain, but estimated the cost would be over $25,000. He commented on how testing could be expanded at the Community Center once the fiber network was in place. Council Member Meehlhause questioned who would be responsible for monitoring the fiber network. Public Works/Parks and Recreation Director Peterson stated the school district would be monitoring the system. He commented the City would still have its own internet system in place. MOTION/SECOND: Meehlhause/Smith. To Waive the Reading and Adopt Resolution 10071, Approving a Professional Service Agreement with ARVIG to Install Network Fiber in the Community Center for the Mounds View School District. Ayes – 5 Nays – 0 Motion carried. 5. PUBLIC COMMENT Mounds View City Council March 3, 2025 Special Meeting Page 4 Brian Amundsen, 3048 Woodale Drive, spoke to the Council regarding budgets. He reported last fall he met with the City Administrator, Mayor and Finance Director. He commented on how 1.5% of the 4% of the franchise fees was to be designated to streets in order to fund street improvements. He explained the strategic plan calls for $360,000 to be collected in franchise fees which meant $130,000 should be going to street improvements. He recommended as managers of the City that the Council follow up on this. He stated there is no ordinance in place that says a street levy is allowed. He suggested if a street levy is going to remain going forward, that an ordinance be put in place to make this permissible. Council Member Meehlhause reported 50% of the franchise fees goes to the street fund. Mayor Lindstrom commented on how it was cheaper for the city to levy for dollars than to do a bond. Sharon Kirsher, 8406 Red Oak Drive, thanked the City for allowing Project Ardan to hold their event on Saturday. She discussed how the City’s plow drivers were salt safe. She recommended those individuals who salt the front sidewalk take the same training as the plow drivers in order to reduce the use of salt. Robert Beligensky, 8198 Groveland Road, discussed his grant application for $500 for a new applicant. He felt the program was run poorly and led to confusion. He feared the City had done some things that were not legal when it comes to data practices. He explained the program was first advertised in Mounds View Matters and residents were encouraged to apply noting there would be a lottery. He noted there were no eligibility requirements. He commented there was no protection against a landlord swooping in and having his tenants take a bunch of these grants. He noted he owns a bunch of property in other communities to see if he could apply for similar grants. He reported he had his third kid around the same time the grant was due, but he did get his application in on time. He indicated he sent in two applications, one for himself and one for his wife, asking if a household could receive two grants. He stated the grants were awarded in December and he was notified his wife’s grant was awarded. He indicated this program was advertised so poorly that the City only received 69 applications for free money. He reported he submitted a data request to see who won and if a landlord had swept in to receive a number of grants. Through the data request process, more problems popped up with the City. He explained he received bad information from the City Administrator when Mr. Zikmund stated 72 of the 72 grants were approved. He commented this was suspicious to him that the City had received exactly enough applications for the amount of grant funding. In addition, he questioned why the City was handing out 72 grants when the Mounds View Matters said there would be 74. He stated the fact was the City received 69 grants, with three additional grants that were for duplicate households. He reported he asked for a list of grant winners and the three properties that had been thrown out. He stated he asked for 10 days to see the list of properties that were thrown out and this information was being withheld from him. He understood he was one of them, but wanted to see who else had been eliminated. He commented he made a second data request on January 17 regarding the instructions the City received from the Met Council to administer this grant program and this request has not yet been filled. He believed this was illegal, noting he believed the City had 10 days to respond. He stated he was disappointed with how poorly this grant program was written and administered. He did not believe it was fair his grant application was denied especially when Mounds View City Council March 3, 2025 Special Meeting Page 5 there was only 69 of the 74 grants administered. He feared something shady was going on with the City. Angelique Workman, 8414 Sunnyside, reported nowhere in the grant information does it state only one grant would be awarded per household. She noted her husband’s grant application got tossed out and she did not believe this was fair. Mr. Beligensky requested the Council make a motion to award the two grants to the households that applied for two grants. He encouraged the City Council to look into their data practices and recommended punishments be considered for not fulfilling a data practice request well after 10 business days. Mayor Lindstrom reported the City Council would be discussing the water efficiency grants at the worksession meeting. Council Member Smith stated she would like to see the Mounds View Matters flyer before making a decision on this matter. Mayor Lindstrom clarified the Mounds View Matters article did not specify whether more than one person from a household could apply for a grant. He indicated the Council had discussed this matter with staff but language was not included in the article. City Administrator Zikmund reported he was not going to get into the data practices request. He explained the Met Council gave the City total authority on managing the program and there was no guidance from the program. He stated he does not have any of the money, rather the City pays out for the grants and puts in for a reimbursement with the Met Council. He indicated he has had a phone call and correspondence with Mr. Beligensky. He reported there were no tenants or landlords that applied for the grants. He commented on the discussions the Council had regarding the implementation of the grants noting staff allowed for applications to be sent in for one week. He noted the City Council was in charge of this program and could decide how to administer the grant funding. Mayor Lindstrom asked if the other 69 grants had been fulfilled. City Administrator Zikmund explained all but two have been claimed. Mayor Lindstrom questioned if these two duplicates were granted, would the City still have additional funding. City Administrator Zikmund reported this was the case. Ms. Workman discussed how she was frustrated by the fact her grant application was tossed without consideration. Mayor Lindstrom questioned if a second grant were awarded to Ms. Workman would she purchase a washing machine, since the first grant was for a dishwasher. Ms. Workman stated this very well could be done. Mounds View City Council March 3, 2025 Special Meeting Page 6 Council Member Clark spoke to the fact the grant program was established to assist residents with replacing old appliances with new water efficient appliances. She commented if there was an error on the City’s part in not stating only one grant would be awarded per household, the City should award two grants to these households so long as these households have proof that two appliances have been replaced. Ms. Workman stated there was no date restriction within the grant language, she asked why there would be a restriction on which appliance was awarded the grant for. Council Member Gunn expressed concern with the fact Ms. Workman received $500 from the City and did not purchase a new dishwasher. Ms. Workman explained she received $500 for the dishwasher she purchased in October. Council Member Gunn stated that was not how the grant program worked. Ms. Workman commented there were no requirements within the newsletter or the application. Council Member Meehlhause believed Ms. Workman should be happy that she received $500 for her dishwasher that she purchased before the grant program was even put in place. Ms. Workman stated that was fine, but she was going to argue for the gentleman whose application was thrown out when he had purchased a washer and dishwasher. Mr. Beligensky commented neither in the Mounds View Matters or the grant application did it specify what had to be replaced, rather it was a bait and switch with instructions that followed once the grant application was approved. Mayor Lindstrom stated Ms. Workman should be good because she was issued a grant for the dishwasher that she purchased. He explained the issue at hand was Mr. Beligensky as he applied for two grants for two separate appliances. Council Member Clark recommended that if the grant were to go back out that more specifications be included with dates and that only one grant be allowed per household. Mayor Lindstrom asked if the Council wanted to fulfill two grants for one household for Mr. Beligensky. Council Member Smith questioned how many grants the City had remaining at this time. City Administrator Zikmund reported the City had 72 applications and 74 grants in total could be awarded. Council Member Smith stated she supported grants being awarded for separate appliances in the same household. Council Member Clark and Council Member Gunn agreed. Mounds View City Council March 3, 2025 Special Meeting Page 7 MOTION/SECOND: Clark/Smith. To approve a second water efficiency grant for separate appliances in the same household. Ayes – 5 Nays – 0 Motion carried. Brian Merchant, 2126 Hillview Road, explained he applied for a grant as well and noted there was confusion. He encouraged the City to be cautious from providing too much detail in the Mounds View Matters noting the grant funding was meant to serve under privileged communities. 6. Next Council Work Session: Immediately following this meeting Next Council Meeting: Monday, March 10, 2025, at 6:00 p.m. 7. ADJOURNMENT The meeting was adjourned at 7:07 p.m. Transcribed by: Heidi Guenther Minute Maker Secretarial