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City Council Regular Meeting Minutes November 12, 2013 Page 5 1 Councilmember Jenson referred to the storm water rate increase of 2.5% and how that works 2 with the road replacement program. Finance Director Rueckert said this program started a 3 couple years ago as they have debt service for storm water improvements so the 2.5% covers 4 inflationary costs for future projects as the debt service falls off. She said the hope is to not have 5 debt service as a result or at least mitigate the amount. 6 7 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 Mayor Faust said the rate has remained stable since 1998 so after 14 years the need is now. Councilmember Stille said this action makes this enterprise self-sufficient and that expenses exceed revenue now and he does not want to have other funds support this. Councilmember Gray said he is not sure how much water we will actually sell so this will allow for a way to provide a cushion if needed. Motion by Councilmember Roth, seconded by Councilmember Stille, to approve First Reading of Ordinance 2013-03; an Ordinance Amending Sections §33.036 Water Rates and §33.061 Miscellaneous Permits of the St. Anthony City Code. Mayor Faust referred to the need to include solar permits now as part of the code codification. Motion carried unanimonsly. B. Ordinance 2013-04; an Interim Ordinance Imposing a Moratorium on the Creation, Establishment or Operation of Businesses that Sell Electronic Cigarettes and on the Sampling of Electronic Cigarettes and Related Products in Business,_._ Mark Casey, City Manager, presenting. Mayor Faust opened the public hearing at 7:59 p.m. City Manager Casey stated the Council is asked to take three action items after the public hearing. He shared the proposed ordinance will impose a moratorium regarding electronic cigarettes which will prohibit on-site sampling. He said the moratorium will be in effect for 12 months to allow staff to commission a study of the effects of electronic cigarette businesses on land use regulations and potential changes. There being no additional public input, Mayor Faust closed the public hearing at 8:02 p.m. Councilmember Stille asked if there has been any update from the State regarding this topic. City Manager Casey said electronic cigarettes are being reviewed at both the State and national level but that not much is known yet. Councilmember Stille said this is the reason for the moratorium to allow the State time to research the topic. He said while the City does not want to have to do this they need to learn how this could impact situations. Mayor Faust added that the moratorium will allow them time to learn what we do not know and how to handle land use questions surrounding this type of business. IVA