HomeMy WebLinkAboutCC MINUTES 08282001 Meeting Sheet
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Folder: CC MINUTES AND AGENDAS 2001
Document: CC MINUTES 08282001
CITY OF ST. ANTHONY
CITY COUNCIL REGULAR MEETING MINUTES
3 August 28, 2001
a I. CALL TO ORDER.
5 Mayor Cavanaugh called the meeting to order at 7:02 p.m.
6 II. PLEDGE OF ALLEGIANCE.
7 Mayor Cavanaugh invited the Council and the audience to join in the Pledge of Allegiance.
8 III. ROLL CALL.
9 Councilmembers present: Mayor Cavanaugh; Councilmembers Sparks, Thuesen, Horst
o and Hodson.
I I Councilmembers absent: None.
12 Also present: City Manager Mike Mornson; City Attorney Jerry Gilligan.
13 IV. APPROVAL OF AUGUST 28, 2001 CITY COUNCIL REGULAR MEETING AGENDA.
14 Motion by Hodson to approve the August 28, 2001 City Council Regular Meeting Agenda.
& Motion carried unanimously.
16 V. PROCLAMATIONS AND RECOGNITIONS.
17 None.
18 VI. COMMUNITY FORUM.
9 Mayor Cavanaugh invited residents in the audience to speak to the Council on items that are not on the
20 regular agenda.
21 Resident Steven Poole, of 270129" Avenue Northeast, came forward and presented a few photos to
22 the Council of some of the work that has been done on his property. He expressed his sincere
23 unhappiness with the work.
24 Mr. Poole indicated that the construction company has decided to take a jackhammer to the driveway
25 a second time and then re-pour it. He stated the sod that was laid was atrocious, and very
26 unprofessionally done. Mr. Poole added that the job was getting done, but at a very slow-pace which
27 had him frustrated.
28 Todd Hubmer, WSB, stated that they were aware of Mr. Poole's concerns, and are taking the
29 necessary steps to repair the damage incurred by the landscaping company. He added that other
0 o residents in Mr. Poole's neighborhood have issues with their sod, and indicated that next spring they
I will be laying new sod at which time the project is anticipated to be complete.
City Council Regular Meeting Minutes
August 28, 2001
Page 2
1 Mayor Cavanaugh urged Mr. Hubmer to continue working on the project until it is satisfactorily
2 completed.
3 VII. CONSENT AGENDA.
4 Councilmember Horst made reference to several errors in the Study Session minutes, and requested the
5 following revisions:
6 Page 1, line 31: "Hennepin County Parks Commissioner" to read, "Suburban Hennepin Parks
7 Commissioner"and corrected throughout the minutes.
8 Page 3, line 8: change "$1,600,000"to read, "$1,000,000".
9 Page 3, line 24: "everything was being taken out..." to read, "all available funds were being used from
10 the water filtration fund to fund the park and that this was too high a price for the City to pay. He
I 1 added that the City Manager identified these funds as spendable funds, which means it can be removed
12 from the fund without damaging the principal."
13 Page 9, lines 1 through 4 to be struck from the minutes.
14 Mayor Cavanaugh requested that the August 14, 2001 City Council Study Session Minutes be
15 removed from the Consent Agenda.
Motion by Thuesen to approve the Consent Agenda. Said Consent Agenda consisted of-
W7 1. Council Regular Meeting Minutes- July 24, 2001; and
18 3. Licenses/Permits; and Claims.
19 Motion carried unanimously.
20 VIII. PUBLIC HEARINGS.
21 None.
22 IX. REPORTS FROM COMMISSION AND STAFF.
23 A. Planning Commission - August 21, 2001.
24 1. Resolution 01-076, re: Shaw, Side Yard Variance, 2835 Roosevelt Street.
25 Planning Commissioner Hanson reviewed the details of the variance request with the Council,
26 and mentioned that the Shaws were present to answer any questions.
27 Commissioner Hanson stated some of the reasons for which the Shaws were requesting the
28 variance are that the home is surrounded on three sides by a street, remaining in the home into
29 retirement, location near a local church, and other parking issues.
460 Commissioner Hanson indicated that the Planning Commission acknowledged their desire for
1 residents to improve the housing stock in the City of St. Anthony, which played a role in the
32 decision to approve the variance request.
e
City Council Regular Meeting Minutes
August 28, 2001
Page 3
Councilmember Horst stated it appeared as though Mr. Shaw was able to use a smaller plan, if
2 necessary, and asked if the resolution before them reflected the smaller plan. Mr. Shaw
3 indicated that the resolution before them did not reflect the smaller plan, but he could reduce the
4 plans to a twenty-foot front.
5 Considering the age of the home and the numerous other homes in the City that were built
6 similarly and around the same time, Councilmember Thuesen asked Commissioner Hanson if he
7 thought that the Planning Commission would see several more variance requests of this nature.
8 Commissioner Hanson indicated that he thought they probably would see more residents
9 wanting to add a second garage.
10 Motion by Sparks to adopt Resolution 01-076, re: Shaw Side Yard Variance for 2835
11 Roosevelt Street.
12 Motion carried unanimously.
13 B. General engineering_ projects update (Todd Hubmer, WSB & Associates Inc., will be present).
14 Todd Hubmer came forward to update the Council. He referred to the twenty-one applicants they had
received for the City's Flood Relief Grant Program for 2001. He indicated that nine of those applicants
*6 were approved for participation in the program. Mr. Hubmer stated that they would be working with
17 each resident and their contractors to meet the completion date of December 31, 2001.
18 Councilmember Thuesen asked for a couple of examples of some of the projects that they are working
19 on. Mr. Hubmer indicated that there have been several cases of backyard drainage swells between
20 homes which has seeped into foundations, windows and homes. He indicated that the applications for
21 the 2002 program would be available next March.
22 Mr. Hubmer reviewed the project that was happening on the 29`h Avenue Street re-construction. He
23 indicated that the project consisted of repairing/replacing sod and driveways that were damaged during
24 construction. He indicated that new signs were in the process of being made for the entire corridor.
25 He stated that the project was essentially complete as it sits today.
26 Councilmember Sparks asked if there would be a crosswalk from Crestview to the park. Mr. Hubmer
27 indicated that there would be a stamped concrete crosswalk at Crestview to the south side.
28 Mr. Hubmer continued that the 2001 street re-construction project was moving along well. He
29 referred to a few of the projects that were taking place throughout the City, and their current status.
30 Mr. Hubmer referenced the pond construction and said that it was progressing. He stated that they
91 expected the excavation work to be completed within the next couple of weeks. He added that tree
32 planting in portions of the pond began today and would continue throughout the month of September.
City Council Regular Meeting Minutes
August 28, 2001
Page 4
Councilmember Thuesen referred back to the re-construction project on 291h Avenue Street and asked
2 if there were different qualities of sod available. Mr. Hubmer said that he was unaware that there were
3 different qualities of sod.
4 Councilmember Thuesen asked about the black dirt that is being placed under the sod. Mr. Hubmer
5 stated that they have requested that at least four inches of topsoil be placed before the sod is laid down.
6 Councilmember Sparks echoed Councilmember Thuesen's concerns of poor quality topsoil. Mr.
7 Hubmer reviewed the one-year warranty that they have with the landscaping company, which has the
8 landscaping company returning to replace the sod next spring.
9 Mr. Hubmer continued with an update on the 2002 Street Re-construction Feasibility Study. He
10 indicated that there would be discussion concerning the under-grounding of the private utilities, cable
I t television, electrical and telephone services and what the associated costs would be.
12 Mr. Hubmer reviewed the status of the Well-Head Protection Plan. He indicated it has been mandated
13 by the State of Minnesota for the City of St. Anthony to be completed. He added that there should not
14 be a tremendous amount of costs for the City regarding the Plan under phase one, as Ramsey County
wants to complete most of the work for the City of St. Anthony.
16 Mr. Hubmer referred to the plans for construction of Silver Point Park. He indicated that they are
17 addressing the concerns they had last year with hockey and other draining issues and would be
18 presenting a preliminary grading plan to the Parks Commission at their next meeting. Mr. Hubmer
19 stated that they would hope to put the proposal out for bid to be brought back to the City Council by
20 October for their consideration.
21 Mr. Hubmer stated that they are revising some of the information contained in the Sanitary Sewer
22 Education Program. He added that they anticipate the next area of education to be from 29'Avenue
23 to 35`h Avenue and from Stinson Boulevard to Silver Lake Road. He added that the Program would
24 be looking at sump-pump removal and drain tile removal.
25 Councilmember Thuesen referred to televising of part of the sanitary system and some of the sanitary
26 sewer back-up problems that they had this past spring. Mr. Hubmer indicated that they reviewed the
27 televised data with the League of Minnesota Cities and said that it did not show that there was any
28 blockage in the line, nor were there maintenance issues that could cause the sort of back-ups that
29 occurred.
30 Mr. Hubmer added that it was high run-off events, or storm events where they were getting those
31 back-ups, and indicated that the system was not designed to handle those types of run-off events.
0
32 C. Presentation of Minneapolis proposal for fire services to St. Anthony(Minneapolis Fire Chief
33 will be present).
City Council Regular Meeting Minutes
August 28, 2001
Page 5
t Minneapolis Fire Chief Forte introduced the staff that accompanied him this evening. He indicated that
2 he was present to share a concept that has the City of Minneapolis providing fire protection for the City
3 of St. Anthony.
4 Fire Chief Forte explained that the City of Minneapolis is faced with budget cuts and it was felt that
5 having the Minneapolis Fire Department service to St. Anthony could be of benefit to both
6 communities.
7 Fire Chief Forte continued that the concept suggested that Minneapolis provide the service out of
8 Station 15, which is approximately one and a half minutes from St. Anthony's city limits. He added that
9 there has been talk about closing Station 15 due to low number of calls.
10 Fire Chief Forte indicated that the cost to the city would be $400,000 annually for three years and
11 could possibly add another two years for a total of five years for$400,000 per year. For future years,
12 increases would be based on salary and benefit adjustments from the union contracts.
13 Fire Chief Forte stated that if the City of Minneapolis were to provide fire services for the City of St.
14 Anthony, it would save the City of St. Anthony about $150,0004200,000 per year. He continued
that the City of St. Anthony would also be able to decide what to do with the fire equipment and fire
*6 station.
17 Fire Chief Forte indicated that the City of Minneapolis Fire Department has one of the best response
18 times in the country, averaging three and a half minutes. He estimated that the average response time
19 for the City of St. Anthony, under the service of Minneapolis, would be a four to eight minute response
20 time.
21 Fire Chief Forte added that the City of Minneapolis could provide the City of St. Anthony with more
22 resources. He exemplified this by detailing the number of firefighters that arrive at the scene of the
23 various fire alarms.
24 Fire Chief Forte stated that the City of St. Anthony and Northeast Minneapolis have the worst
25 ambulance response time in the County. He added that if they combined services he would look at re-
26 constructing Station 15, and add an ambulance bay.
27 Councilmember Horst asked if St. Anthony would be the first to combine forces like this. Chief
28 indicated that they would be the first.
29 Councilmember Horst asked if the concept presented this evening would be a benefit to them, or simply
30 a loss of their services. Fire Chief Forte indicated he felt the only negative was that they would lose one
0 minute on response time, but the rest of the concept was to their advantage.
32 Fire Chief Forte reiterated that he had a great deal of respect for the firefighters of the City of St.
33 Anthony.
City Council Regular Meeting Minutes
August 28, 2001
Page 6
1 Councilmember Horst referred to the flyer that stated "What if you dialed 911 and no one came?" He
2 asked where the loyalties would lie between the two cities. Fire Chief Forte stated that was one of the
3 reasons that they have initiated mutual aid. He added that the cities of Minneapolis and St. Anthony
4 would be prioritized as one community.
s Councilmember Horst referred to the union requirement that required more riders on the Fire Trucks
6 that they currently have. Fire Chief Forte stated that they could certainly meet those needs for the City
7 of St. Anthony.
8 Councilmember Sparks asked about the rumors that the Johnson Street Station would close if the
9 agreement did not go through. Fire Chief Forte indicated that was only a rumor and the Johnson Street
10 Station would not close.
11 Councilmember Thuesen referred to ambulatory response time in the City of St. Anthony being slower
12 than others, and asked if they would give them the ambulance bay regardless of the decision to combine
13 services. Fire Chief Forte indicated that there was no room to add on to the existing fire station at this
14 time right now, but additional funds would make enhancing that station possible.
Councilmember Thuesen asked if he had the authority to put an ambulance bay in anyway. Fire Chief
06 Forte stated he was not in control of that, but an increase in his budget would help him use his influence
17 to get Hennepin County into the area and, hopefully, get the ambulance bay addition.
18
19 Councilmember Hodson referred to the response time, and stated he found the statistics difficult to
20 believe. Fire Chief Forte stated that the average range of four to eight minutes depended on how near
21 or far a residence was from the station.
22 Councilmember Hodson mentioned how critical those first three minutes can be in saving a life.
23 Councilmember Sparks referred to a some research she had done that discussed a"five minute point of
24 flash over,"and asked for clarification of what that was. Fire Chief Forte stated that it meant a fire
25 could begin spreading to the contents of a room within five minutes.
26 Councilmember Sparks added that nine minute response times in the City of Minneapolis are scary.
27 Fire Chief Forte stated that the nine minute response time was the extreme, and once any community's
28 resources are overwhelmed by multiple fire alarms, the response time goes up. However, he added
29 that their average response time is three and a half minutes.
30 Councilmember Thuesen indicated that he would like to see Fire Chief Hewitt respond to the issue of
31 house fires on opposite sides of town, and how they would be addressed.
0
32 Fire Chief Hewitt indicated that the fire department in St. Anthony belong to various mutual aid groups
33 for response. He stated that, essentially, if they do not have the resources they call out to their other
34 mutual aid groups.
City Council Regular Meeting Minutes
August 28, 2001
0 Page 7
1 Mayor Cavanaugh referred to the three year relationship, and asked if Fire Chief Forte had checked
2 into the possibility of a permanent relationship. Fire Chief Forte stated that the concept of joining
3 services had not yet been discussed with their Mayor, therefore, he had not examined the possibility of
4 an eternal relationship.
s Mayor Cavanaugh stated they are talking about a very small part of the issue for the City of St.
6 Anthony. He continued that fires are not their main call and seventy-five percent of all calls are non-fire
7 calls.
8 Mayor Cavanaugh stated that Hennepin County trucks come with paramedics who can do more than
9 Emergency Medical Technicians (EMTs). He added that the City of St. Anthony was concerned with
10 the EMT response, and the residents felt that the local fire department exceeded their needs.
11 Fire Chief Forte indicated that the City of St. Anthony, if it remains independent, has a one minute
12 better response for all emergencies.
13 Mayor Cavanaugh stated that the additional minute response time, should they decide to join forces,
14 was very critical to the residents.
05 Councilmember Thuesen stated that they are not here to discuss ambulance service this evening. He
16 asked what it has to do with the decision to join forces with the City of Minneapolis. Mayor
17 Cavanaugh indicated that Councilmember Thuesen was the initiator of the issue.
18
19 Councilmember Thuesen added that he felt Mayor Cavanaugh was making ambulance service an issue
20 in order to get the residents to approve the concept of joining services. He added that he felt the
21 ambulance service issue was entirely separate.
22 Resident John Mondati, 3420 Highcrest Road, stated that a friend passed away a year ago because
23 they did not get a quick enough response from the City of Minneapolis. He stated that he thought the
24 City of St. Anthony Fire Department deserves to be protected, as they are valuable people.
25 A Resident asked where the new station would be. Fire Chief stated that was to be determined.
26 A former resident of Minneapolis referred to the slow response times she received from the City of
27 Minneapolis. She wondered why they do not collectively have an ambulance with paramedics in St.
28 Anthony where they have the space to house a holding garage versus Johnson Street which is so
29 crammed. Fire Chief Forte concurred that the Johnson Street Fire House could not house a holding
30 garage.
01 Resident Diana Roadfeldt, 2924 Rankin, asked why the City of St. Anthony could not offer the City of
32 Minneapolis some services. She continued that would allow the City of Minneapolis to sell the station
33 on Johnson Street and build a new station in the City of St. Anthony. Ms. Roadfeldt indicated that the
City Council Regular Meeting Minutes
August 28, 2001
Page 8
I Fire Department is precious to their community, personal friends to many residents, and she did not
2 want to lose them.
3 Resident George Zahhos stated he served on the Council in 1959 and 1960. He stated if the Council
4 votes to do combine services, they would be doing a disservice to the community. He praised the
5 successes of the Fire Department for the trips that they have made to his home and the lives they have
6 saved.
7 Mr. Zahhos continued that he did not understand why the merits of their Fire Department were in
8 question at all, and pleaded with the Council that they follow the wishes of the constituents and vote
9 against the concept.
10 A Resident asked if the City of St. Anthony had the same issue under consideration with the City of
I I Lauderdale years ago. He asked that the City Council do their homework before proceeding.
12 A Resident asked about the current response time in the City of St. Anthony. Councilmember Sparks
13 responded that it was two minutes, forty seconds.
A Resident requested more information regarding response times. Fire Chief Forte stated that he could
ifs only respond for the City of Minneapolis.
16 Walter Hildebrandt, M.D., made reference to the remarkably quick medical response time in St.
17 Anthony. He asked why they would want to consider losing such an invaluable asset to their
18 community.
19 A Resident stated she had a recent injury where the St. Anthony medical team and Fire Department
20 responded in less than three minutes. She stated that the Emergency Medical Team took twenty-five
21 minutes.
22 Mayor Cavanaugh dismissed Fire Chief Forte and staff and called upon City of St. Anthony Fire Chief
23 Hewitt.
24 Fire Chief Hewitt provided a history of himself to the Council. He stated that he has been in the fire
25 service field for twenty-five years and the thirty men and women who are on his staff today are the
26 finest he has ever had the privilege to work with.
27
28 Fire Chief Hewitt discussed the Emergency Services (EMS) that they provide. He indicated that the
29 Paramedic Service is provided by the Hennepin County Medical Center. He stated that a paramedic
30 is at the top of their line, and the nearest thing to a doctor.
0
31 Fire EMS:
32 0 16 EMTs and 14 First Responders
City Council Regular Meeting Minutes
August 28, 2001
• Page 9
1 • Trained in EMS, CPR, cardiac arrest management, vehicle extrication, airway
2 management, technical rescue, ice and water rescue.
3 • SAFD are the First Responders to the community.
4 • HCMC ambulance provides paramedic and transport services.
5
6 Fire Chief Hewitt indicated that Fire Fighters are the first to come to the scene of an emergency. The
7 average response time is two minutes and 40 seconds.
8
9 Fire EMS:
10 • Firefighters supplement HCMC on critical care incidents.
11 • HCMC ambulance responds to all SAFD medical responses.
12 • Paramedics have the ability to provide drug therapy.
13 • 681 medical incidents in 2000- 72.6& of them were emergency medical events.
14
15 NFPA (National Fire Protection Agency) 1720:
16 • Adopted May 2001.
17 • Is a deployment standard.
18 • Is not a mandate.
!9 • Applies to volunteer departments, paid per call departments, combination
o departments of career and paid per call, such as the Fire Department in the City
21 of St. Anthony.
22 • Final document has yet to be published.
23 • Four trained firefighters shall assemble on the scene before initiating as interior
24 structure attack.
25 • Once assembled, operations shall begin within two minutes, 90% of the time.
26
27 O.S.H.A 2 In/Out- This is a mandate.
28 • Four firefighters have to assemble on the scene prior to beginning as interior
29 attack.
30 • Two of the four have to remain outside as a rescue crew for the two that go in.
31
32 Fire Chief Hewitt indicated that the only time that O.S.H.A 2 in/out can be violated is when they are
33 told that there is someone in the house and needs immediate rescue, or if the fire is in its incipient stage.
34 Supplemental Firefighters:
35 • Public Works are not FF 1 (Firefighter 10 1) trained except for two who have
36 been trained from other fire departments.
37 • Untrained Public Works personnel who do not have FF I cannot be used as a
X38 firefighter.
40 Supplemental Firefighters:
41 • Proposal would cost approximately $75,000 the first year and $37,000 each
42 year after.
City Council Regular Meeting Minutes
August 28, 2001
Page 10
1 • The current firefighters receive no compensation for attending FF1 training.
2 • Our current firefighters do not receive compensation for just being available.
3 • Current department training budget was $4,500.
4 • They have hired four recruits since April who are available during the day.
5 • They have mutual aid agreements with the surrounding communities.
6 * Columbia Heights and Fridley are available to respond automatically to
7 confirmed working structure fires.
8 • They are currently working with the City Manager to provide city employees to
9 become day firefighters.
10 Mayor Cavanaugh asked if they would abandon Public Works volunteer option for now. Fire Chief
1 t Hewitt said that was true.
12 Mayor Cavanaugh asked about the condition of the firehouse.
13 A Resident stated that members of the community were here to speak, not listen to the status of the
14 firehouse and statistics provided by Fire Chief Hewitt.
Mayor Cavanaugh interjected that he brought up a good point, but they never anticipated this type of
*6 turnout when the Fire Chief for the City of Minneapolis agreed to come tonight. He continued by
17 saying that he wanted to hear about the condition of the firehouse because it is a concern for the
18 community. Mayor Cavanaugh added that he was aware of the majority's disposition, and he would
19 return the subject back to the Council shortly.
20 Fire Chief Hewitt advised that the state of the firehouse was poor. He indicated that there are two
21 firefighters who live there full time. He cited several reasons for which the firehouse needed dire
22 attention: small and dysfunctional, gear is stored near the diesel fumes(not O.S.H.A compliant), air
23 quality is terrible, carpet is bug infested, sewer backs up in the shower.
24 Mayor Cavanaugh stated that reports from several engineers who have examined the firehouse echoed
25 the same technical concerns that Fire Chief Hewitt referenced.
26 Mayor Cavanaugh asked if there was any desire on behalf of the Council to pursue any further the
27 subject of joining services with the City of Minneapolis.
28 Councilmember Hodson thanked the residents for their presence and their comments, and stated that
29 he did not feel the need to continue any pursuit.
30 Councilmember Horst stated that he did not know of any other Fire Department that does the same
0 type of work as the Fire Department in the City of St. Anthony. He added that discussing the Fire
32 Department is just the "tip of the iceberg," and the Police Department and the Public Works
33 Department were next.
City Council Regular Meeting Minutes
August 28, 2001
Page 11
t Councilmember Thuesen stated that he was pleased that the proposal came up this evening and that the
2 Mayor added"fuel to the fire." He added that he was happy to hear the community voice their
3 support, and asked the audience if they would be around to support them with the necessary tools to
4 keep their Class A Fire Department.
s Mayor Cavanaugh declared that joining services with the City of Minneapolis proposal was dead. He
6 stated that there appeared to be a willingness on the part of the community to invest in the
7 infrastructure. He added that he felt it was past time to put in a referendum and approve new buildings
8 for the City employees who are truly dedicated and hard-working.
9
10 Mayor Cavanaugh asked for residents to comment on their feelings regarding the proposed fire
1 t services.
12 Resident John Delmonico stated that a few of his neighbors had heard rumors that the Mayor wanted to
13 join Police Forces with New Brighton. Mayor Cavanaugh explained that would not be happening.
14 A Resident stated that the Council needed to review the changes in tax laws and the various impacts
15 that it will have on the residents of the City of St. Anthony.
06 Mike Stockstead, President of Minnesota Professional Firefighters, stated he was there to be the voice
17 of firefighters and stated that the Council's concern over the medical aspect of this proposal was
18 forward thinking and he applauded them. He continued that a new law allows them to have paramedic
19 staffed versus EMT staffed rigs. Mr. Stockstead implored the Council to continue thinking that way.
20 A Resident asked if it was possible to combine the Fire Department and the Public Works Department
21 on the Foss Road property. Councilmember Horst stated that it has been discussed.
22 A Resident stated he wanted to admonish the Council for not prioritizing better. He believes that lives
23 are more important than city parks.
24 Dan McNulty, former resident who served on the Fire Department in St. Anthony, stated that
25 surrounding areas are amazed by the internal structure of the Fire Department of the City. He warned
26 them not to put all of their money into equipment, but in their personnel and their pensions. He
27 suggested that they work to retain the Public Works people and give them some incentive to stay.
28 A Resident commended the Council for their work. She stated that she was concerned that the City
29 not attempt to do everything at once in light of the changes in the tax laws. She urged some restraint on
30 the part of the Council.
01 Another Resident voiced her frustration regarding the tax returns. She stated that the schools and the
32 cities will need that money back, and hoped that residents would understand and support them.
City Council Regular Meeting Minutes
August 28, 2001
Page 12
Dr. Walter Hildebrandt, another St. Anthony resident, stated that their first priority was with medical
2 attention, and hoped that the community would support them when they asked for it.
3 Resident Clarence Ranallo, President of the Kenzie Terrace Association, stated that he was urged by
4 the residents of Kenzie Terrace to come forward to request that the Council deny the proposal from the
5 City of Minneapolis. He added that he was pleased that they did just that.
6
7 Mr. Ranallo stated that the community has lost so much already, and they do not want to lose the Fire
8 Department. He identified other examples that had residents asking questions regarding TIF funds, and
9 an electronic sign.
10 Mayor Cavanaugh defended the actions of the Council stating that they are following a pattern that was
11 set down with acquiring the homes on Kenzie. He added that they cannot get everything done at once,
12 but if they do not start these things, it would come back at them later.
13 Mayor Cavanaugh asked the Council if they wanted to do anything on the Firehouse.
14 Councilmember Horst stated he felt that a new firehouse was a future need.
05 Councilmember Thuesen suggested that they discuss the next step with the issues surrounding the Fire
16 Department at the next City Council Study Session.
17 Councilmember Hodson stated that he would like to examine the costs and time line associated with the
18 Firehouse.
19 Mayor Cavanaugh called for a five-minute recess before the meeting continued.
20 D. Discussion of the Stonehouse operation.
21 City Manager Mike Morrison stated that the Council had made the Stonehouse property their number
22 one priority on their list of issues in January. He indicated that the City had approved Jim Prosser,
23 Ehlers and Associates, to examine the Stonehouse, its operations, and address the issue of keeping the
24 Stonehouse open.
25 Mr. Prosser indicated that they separated the on-sale from the off-sale because they are so different,
26 specifically examining the on-sale portion. He said that their primary issue to examine was whether they
27 should reinvest in the existing structure and operation.
28 Mr. Prosser reviewed the option of building a new On-Sale Restaurant, which consisted of constructing
a new 5,000 square foot restaurant on the current site with the city continuing to operate. He continued
that the costs and revenues were as follows:
City Council Regular Meeting Minutes
August 28, 2001
® Page 13
1 - $1,000,000 for building, furniture/fixtures and equipment. Since the site cannot support
2 a restaurant of this size and odd-sale retail, an additional $250,000 for land should be
3 considered.
4 - A restaurant of this size should produce approximately $1,250,000 to $1,500,000
5 gross revenues.
6 The Advantages:
7 - Allows continued revenues for Charitable gambling operations.
8 - Continued presence for on-sale operations.
9 The Disadvantages:
10 - Building needs to be replaced
11 - Municipal operation of on-sale liquor store provides significant challenges including
12 public perception, liquor liability, control and pricing.
13 - Current building conditions reflect poorly on city management.
14 Mr. Prosser reviewed other options, including leasing the site to charitable gambling operations for
15 development as on-sale restaurant(would require a referendum to split on and off sale operations).
�6 The costs and revenues:
No direct costs.
18 - Projected value property of$100,000+.
19 - Projected property tax $20,000 total and $5,000 City.
20 - Projected license revenue. (Fees not determined, would cover cost of control.)
21 - City expense reimbursement unchanged.
22 The Advantages:
23 - Allows continued operation of charitable gambling.
24 - Charitable gambling operations would be able to contract for operations management
25 with independent firm.
26 - Property would be taxable.
27 The Disadvantages:
28 - Charitable gambling operations may not be interested or capable of operating
29 restaurant.
30 - City would no longer directly control on-sale liquor operations.
31 - NFP operation of on-sale liquor store provides significant challenges including public
32 perception, liquor liability, control and pricing.
33 In summary, Mr. Prosser stated that it was extremely important for the City to have an idea of the
0 profitability aspect. He stated that Ehlers and Associates does not think that the numbers truly reflect
35 the need to reinvest in the building.
36 Additional Findings:
City Council Regular Meeting Minutes
August 28, 2001
• Page 14
- The current Stonehouse on-sale restaurant is in need of replacement. No additional
2 capital investments should be made in the existing building.
3 - The Stonehouse cannot be considered to be profitable. Given its current condition it is
4 likely to be more unprofitable in the future.
5 - St. Anthony Village would be required to invest approximately $100,000 to
6 $1,250,000 for a new building to continue on-sale operations.
7 - Gross annual revenues of$1,250,000 to $1,500,000 will be required to service the
8 operation and debt. It is very difficult to sustain this level of sales in a highly competitive
9 market.
10 - The current site is too small to permit appropriate redevelopment for commercial uses
11 that include both on-sale and off-sale liquor sales.
12 - The primary financial function of the Stonehouse appears to be an outlet for charitable
13 gambling.
14 - Charitable gambling is projected to be at least as profitable at a new city-owned or
15 privately-owned on-sale restaurant (s).
16 Recommendations:
17 - Explore redevelopment of the Stonehouse site with off-sale liquor retail store as a
potential.
44f9 - Cease on-sale liquor store operations.
20 - Conduct referendum to permit municipal off-sale and private on-sale operations.
21 - Permit charitable gambling at restaurants serving liquor.
22 Alternate Recommendation:
23 - Consider a referendum to approve $1,000,000 to $1,250,000 to fund a new on-sale
24 liquor store.
25 Mr. Prosser indicated that the Stonehouse property was worth $100,000.
26 Councilmember Sparks asked what the consultants said about the location of the Stonehouse property
27 for a restaurant. Mr. Prosser stated that restaurants like to be amidst a great deal of retail, and a high-
28 traffic area.
29 Councilmember Horst asked what type of redevelopment projects they see useful for the property.
30 Mr. Prosser stated that they see mixed use. Mr. Prosser indicated that there was strong support for
31 limited retail with a small restaurant pad and an off-sale liquor pad. He added that townhomes,
32 apartments, and daycare have all been mentioned as viable options.
33 Mr. Prosser stated that he was not recommending that they market the Stonehouse property at the
W $100,000 value, but that it was the amount that they could bank on.
35 Councilmember Horst asked if it was necessary to close the Stonehouse in order to get split liquor in
36 the City of St. Anthony. Mr. Morrison indicated that it was not.
City Council Regular Meeting Minutes
August 28, 2001
® Page 15
1 Councilmember Sparks asked about putting the issue on the ballot for the November election. Mr.
2 Mornson stated that it would be difficult to get a referendum in place in time for the November election.
3 Councilmember Thuesen stated he felt that they needed to discuss this further before he would be in
4 favor of placing the issue on the ballot.
s Councilmember Horst stated that he did not want to go ahead with closing the Stonehouse without a
6 plan, which constitutes a referendum of some kind.
7 Councilmember Hodson referred to the struggling Park and Recreation Program which does not
8 appear to be getting better.
9 Mayor Cavanaugh stated that the cleared site has more promise than the Stonehouse site. Mr. Prosser
10 indicated his statement was true.
I 1 Mayor Cavanaugh stated that he would close the Stonehouse tomorrow if it were his business. He
12 continued that the building was done and they owe it to the community to shut down the Stonehouse
13 and clear the site for redevelopment.
04 Councilmember Thuesen agreed with the Mayor, with the exception of closing the Stonehouse
15 tomorrow. He feels a plan needs to be in place before they shut it down.
16 Councilmember Hodson asked Mike Larson about the space in the common area on Highway 88 for a
17 liquor store. Mr. Larson stated that the exposure at that location would be a great asset.
18 Councilmember Horst said he was most comfortable using the "band aid approach" until they have a
19 plan.
20 Mayor Cavanaugh asked Mr. Prosser if the Stonehouse was more than a"band aid" problem. Mr.
21 Prosser stated that, from a strictly financial standpoint, it does not make sense to reinvest in the
22 Stonehouse.
23 Mayor Cavanaugh suggested that they keep the Stonehouse open until the end of the year. In the
24 meantime, a plan needs to be developed.
25 Mayor Cavanaugh stated that he did not feel that government had any place in the business of
26 charitable gambling. He stated that these types of stores need to have an owner, and collect property
27 taxes.
108 The Council deliberated over the Stonehouse, and returned to the idea of getting a liquor license
29 referendum on the November ballot.
City Council Regular Meeting Minutes
August 28, 2001
• Page 16
Councilmember Sparks stated that a negative aspect of getting the referendum on the November ballot
2 is that it does not give the Council much time to educate the public on the issue.
3 Mr. Prosser stated they would need a minimum of ninety days to prepare for a referendum.
4 The Council agreed that a Special Election may be necessary.
5 Mr. Morrison stated that they will work with Ehlers and Associates to market the entire parcel of the
6 Stonehouse property, the off-sale property and the Firehouse. He indicated they would return in sixty
7 days with the type of suitors interested in the property.
8 X. GENERAL POLICY BUSINESS OF THE COUNCIL.
9 A. Resolution 01-075, re: Adopt a 2002 levy.
10 Mr. Morrison referred to the updated copy of Resolution 01-075 and stated that the difference is that
11 they received their certified levy limits from the Department of Revenue, which were reduced by
12 $2,300. He stated that the proposed tax levy was $2,635,366.
13 Councilmember Thuesen referred to the elimination of HACA aid and stated that they needed to
Weducate residents on the ramifications of the tax levy.
15 Councilmember Hodson stated that he agreed with Councilmember Thuesen, and they need to hear
16 from the residents what services they want. He recommended that they go forward with this
17 Resolution.
18 Councilmember Horst stated that property taxes would be lowered regardless of whether the City
19 adopts this levy, or any other levy. He added that the City portion has to go back up in order to make
20 for the money that the legislature took away.
21 Councilmember Thuesen stated that he was cautious to assume that property taxes will be decreasing,
22 as he has seen what the legislation has done to residents this year.
23 Councilmember Sparks stated she felt residents would complain about their property taxes in a few
24 years because they are confused and uninformed. She added that she was in favor of supporting the
25 tax levy at this time, but indicated that she thought it would come back to them needing to be
26 reassessed.
27 Mayor Cavanaugh stated he felt that the new tax legislation was the most mean-spirited thing that the
28 legislature could have done. He added that a community the size of St. Anthony was really up against
49 the levy because they do not have the tax capacity.
30 Mayor Cavanaugh concluded that he thought Councilmember Sparks was correct, and that, in a couple
31 of years, the Council Chambers would be filled with unhappy and misled residents.
City Council Regular Meeting Minutes
August 28, 2001
• Page 17
t Motion by Hodson to adopt Resolution 01-075, re: Granting the City of St. Anthony's consent to
2 adopt a 2002 levy.
3 Motion carried 4-1. Mayor Cavanaugh opposed.
4 B. Resolution 01-073, re: Participation in Local Housing Incentives Account Program.
5 City Manager Michael Morrison reviewed the resolution with the Council.
6 Motion by Sparks to adopt Resolution 01-073, re: Participation in Local Housing Incentives Account
7 Program.
8 Motion carried unanimously.
9 C. Ordinance 2001-002, re: Amend sign ordinance (,2nd reading).
10 Motion by Horst to adopt Resolution 2001-002, re: Amend the sign ordinance.
11 Motion carried unanimously.
02 XI. REPORTS FROM CITY MANAGER AND COUNCILMEMBERS.
13 Councilmember Thuesen stated that he applied for re-election next year. Councilmember Hodson
14 stated that he had applied for election, as well.
15
16 XII. INFORMATION AND ANNOUNCEMENTS.
17 None.
18
19 XIII. ADJOURNMENT.
20 Motion by Cavanaugh to adjourn the meeting at 10:56 p.m.
21 Motion carried unanimously.
22 Respectfully submitted,
23 Courtney Seesz
24 TimeSaver Off Site Secretarial, Inc.
0
• City Council Regular Meeting Minutes
August 28, 2001
Page 18
ATTEST:
City Clerk
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