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HomeMy WebLinkAboutCC MINUTES 05132003 Meeting Sheet IIIIIIVIIIVIIIVIIIVIIIVIIIIIIIIIII 105430 Box: 34 Folder: CC MINUTES AND AGENDAS 2003 Document: CC MINUTES 05132003 City Council Regular Meeting Minutes May 13, 2003 Page 1 CITY OF ST. ANTHONY 2 3 CITY COUNCIL REGULAR MEETING MINUTES 4 5 May 13, 2003 6 7 CALL TO ORDER. 8 Mayor Hodson called the meeting to order at 7:01 p.m. 9 10 PLEDGE OF ALLEGIANCE. 11 Mayor Hodson invited the Council and audience to join him in the Pledge of Allegiance. 12 13 ROLL CALL. 14 Present: Mayor Hodson; Councilmembers Horst, Sparks, Thuesen, and Faust. 15 Absent: None. 16 Also Present: City Manager Mike Morrison. 17 18 CONSIDERATION, DISCUSSION, AND POSSIBLE ACTION ON ALL OF THE FOLLOWING 19 ITEMS. 20 21 I. APPROVAL OF MAY 13, 2003 CITY COUNCIL MEETING AGENDA. Motion by Councilmember Thuesen to approve the City Council Meeting Agenda of May 13, 2003. 24 25 Motion carried unanimously. 26 27 II. PROCLAMATIONS AND RECOGNITIONS. 28 1. Presentation from Students of Salo, Finland's Moisio School 29 Mayor Hodson invited the Councilmember Faust to introduce the students and faculty from 30 Finland. Councilmember Faust noted the City has had the opportunity to host 10 students and 2 31 teachers from Moisio School in Salo, Finland. He asked the students and teachers to step 32 forward and introduce themselves to the Council. The visitors thanked the residents for their 33 kindness, hospitality and generosity. They indicated they were pleased with the opportunity to 34 visit such a wonderful area of the country. 35 36 III. COMMUNITY FORUM. 37 Mayor Hodson invited residents to come forward at this time and address the Council on items 38 that were not on the regular agenda. 39 40 Stan Nelson, 3504 Maplewood Drive, noted he was not present at the last meeting to discuss the 41 budget, but indicated he had two overheads to review with the Council. He indicated he felt the 42 City was lucky to have Roger Larson as the Finance Director. Mr. Nelson stated when looking 43 at the budget for 2004, the intergovernmental revenue was questionable for next year. He encouraged the Council to look at line items named miscellaneous funds and have them greater go defined. Mr. Nelson noted the use of other supplies as a line item needed greater detail and City Council Regular Meeting Minutes May 13, 2003 Page 2 specification as well. He stated he felt the park expenses were too high for 2004 as public safety 2 and public services should come first in these budget tight times. 3 4 Mike Christensen, 3043 Croft Drive, stated briefly that he has lived in the City nearly his whole 5 life. He indicated he also works in the City, which has him representing a taxpayer in both 6 capacities. Mr. Christensen indicated the City of St. Anthony has high taxes in comparison to 7 neighboring communities. He noted a lot of investments have been made into the City for the 8 school district and for governmental improvements. Mr. Christensen stated the new City Hall 9 was a great expense for the City. He noted financial planning is a concern to all working 10 families and he cautioned the Council to be as careful with their money as he is with his in 11 moving forward with the fire station and public works facilities. 12 13 IV. CONSENT AGENDA. 14 15 1. Consider April 22, 2003 Council meeting minutes. 16 2. Consider licenses and permits. 17 3. Consider payment of claims. 18 19 Motion by Councilmember Sparks to approve the Consent Agenda items. 20 21 Motion carried unanimously. 0 V. PUBLIC HEARINGS. 24 None. 25 26 VI. REPORTS FROM COMMISSIONS AND STAFF. 27 A. Update from Parks Commission. 28 Park Commissioner Doug Koehntop stepped forward to address the Council. Mr. Koehntop 29 stated the Commission has been dealing with final construction on Central Park and wrapping 30 things up. He noted one of the biggest issues is erosion from water run off due to the location of 31 the park. He noted drainage issues are being addressed by Jay Hartman to get this issue under 32 control and complete. He felt the park would be done by July 1, 2003 with a park opening some 33 time next spring. 34 35 Mr. Koehntop noted the Park Commission wants the Council to know Central Park's space was 36 maximized and noted parking could be a concern when all fields are in use. He noted additional 37 parking space could be gained from the Christen site if purchased for the fire station. 38 39 B. Update from Public Facilities Study Group. 40 Public Facilities Study Group Chair Paul Archambault stepped forward to address the Council. 41 Mr. Archambault gave a presentation to the Council on the Public Facilities Study Group 42 regarding a new Fire Station and renovations to the Public Works Facility. He gave the 43 background information as to the problem with the existing structures and how to resolve these 0 issues. City Council Regular Meeting Minutes May 13, 2003 Page 3 Mr. Archambault noted the Study Group was charged to look at all options available over an 2 eight-month period and present the Council with their recommendations. He indicated numerous 3 sites within the City were reviewed by the varying Study Group members. Mr. Archambault 4 noted three open houses were held to gain additional feedback from the residents. 5 6 Mr. Archambault reviewed the preferred options with the Council stating the Study Group feels 7 the Christen site would be a great central location for a new combined fire station. He stated the 8 existing sites could be redeveloped to allow them to generate taxes again. Mr. Archambault 9 indicated the Study Group recommends renovating and adding on to the existing public works 10 facility to bring it up to code and meet the needs of the City. He then reviewed the needs of the 11 public works and how the existing facility was not meeting those needs. 12 13 Mr. Archambault stated the proposed improvements are not short-term in nature, but would be 14 lasting improvements to bring the community into the next 50 years for their public works and 15 fire departments. 16 17 Mr. Archambault indicated the Council challenged the study group with a$5 million budget for 18 both upgrades. He noted this challenge then led to a proposal of doing both facilities at the 19 public works facility site for roughly$4.7 million. He reviewed the advantages and 20 disadvantages of this proposal noting the site would not provide enough parking or indoor 21 storage if approved as presented. 0 Mr. Archambault reviewed a response time survey completed by the study group and how it 24 could be effected by the placement of the fire department at the public works facilities. He noted 25 response times would increase. Mr. Archambault noted the Kenzie Terrace site has been 26 eliminated as a possibility due to the price of acquisition ($600,000) and demolition work 27 needed. He stated this would also remove a commercial property from the tax rolls. Mr. 28 Archambault reviewed the acquisition fees between the Christen property to the Kenzie Terrace 29 parcel. 30 31 Mr. Archambault explained if the Christen site were used for a new station, the scale of the 32 building would have to be downsized. He reviewed a new plan meeting the $5 million budget to 33 best serve the community from this central location. Mr. Archambault reviewed the proposed 34 renovations to the public works facilities to meet the budget left over after completing the fire 35 station. 36 37 Mr. Archambault reviewed the project costs estimates and how it would effect the taxpayers 38 within the community. He noted for a$100,000 home with a$5 million bond it would cost the 39 taxpayer$85 per year. Mr. Archambault noted lease revenue bonds do not require a vote and 40 indicated these bonds are most often used for city service buildings and utilities. He stated this 41 may be an option for the Council to consider as the economy is down with construction pricing 42 at a surprising low. 43 Mr. Archambault explained the need for these facilities was not going to go away. He stated these buildings would be an investment that would last the residents up to 50 years and would 46 only be paid on for 20 years. Mr. Archambault indicated the residents are looking for the City Council Regular Meeting Minutes May 13, 2003 Page 4 Council to be reasonable with these facilities and that the monies are spent wisely. He thanked 2 the Council for their time and asked for questions or comments. 3 4 Councilmember Faust thanked the Study Group for their work and recommendations. He also 5 thanked the community for their input. Councilmember Faust noted this was a difficult position 6 for all taxpayers as all residents would be expending money. He questioned if a reduction in the 7 public works facility by 37% could be done. Mr. Archambault indicated this was their 8 recommendation to keep within the $5 million budget. He noted an additional 600,000 square 9 feet was needed to bring the space up to what the facility demands, but would bring the budget 10 up to $5.5 million. 11 12 Councilmember Faust indicated he feels the investment in these buildings will greatly benefit the 13 community if built with the next 50 years in mind. He noted an issue of flooding was postponed 14 for many years until the Council undertook the 100-year flood protection. Councilmember Faust 15 noted that Council undertook a great expense and criticism when addressing that issue, but did 16 the right thing for the community. 17 18 Councilmember Faust stated the cost of not doing the improvements could greatly outweigh the 19 fee of doing it in the future. He noted interest rates are at an all time low, construction fees are 20 down and stated this would be a great time for the Council to seize the opportunity for the 21 greater good of the community. 0 Councilmember Thuesen thanked the Study Group for their efforts as he believes they exceeded 24 the requests of the Council. He stated he feels the community needs to address the fire station 25 health issues as they deserve a healthy environment to live and work in. Councilmember 26 Thuesen stated the public works facilities were not constructed for the needs of today. He feels 27 the employees deserve a safe and healthy work environment. 28 29 Councilmember Thuesen noted misleading information harms the public and that educating the 30 residents of the facts is the Council's goal at this time. He stated he feels the fire station and 31 public works facilities both have"leaky roofs"that need to be fixed and cannot be put off any 32 longer. Councilmember Thuesen stated he feels the updating of these facilities would increase 33 the value of the community going into the future. 34 35 Councilmember Sparks indicated the residents are questioning the level of services provided by 36 the City of St. Anthony. She noted this was addressed before the Study Group was established. 37 Councilmember Sparks explained the fire station needs a building and a functioning fire 38 department. She stated this must be done in an efficient manner with the citizens kept in mind. 39 40 Councilmember Sparks stated she is convinced the public works facility is inefficient and also 41 requires improvements. Mr. Archambault noted operations of the public facilities were discussed 42 after a first open house by drafting and having staff answer questions regarding these operations. 43 He stated communities that try and design a facility on their own without using a professional, oftentimes end up creating numerous unforeseen problems. He noted professionals should be 16 used to help the City make the right decisions. 46 City Council Regular Meeting Minutes May 13, 2003 Page 5 Councilmember Horst thanked the Study Group for all their hard work. He noted this was a great 2 undertaking that worked out for the best. He noted he considered both projects as being essential 3 infrastructure to the City and its residents. He stated the public has been involved with this issue 4 and provided great input. Councilmember Horst indicated the Study Group was not guided by 5 the Council, but instead charged to find and recommend solutions. 6 7 Mayor Hodson reviewed the history of the public works facilities and fire station. He noted the 8 public wants increased revenues streams while promoting redevelopment of the City. Mayor 9 Hodson stated he is struggling with these improvements, and that creating a building that would 10 last 50 years would cost a greater amount of money than a quick fix. 11 12 Mayor Hodson questioned the quality of construction and if the Christen site could be reduced to 13 a three bay station. He wondered if this could then be increased in the future and also if the 14 public works facility vehicles could sit outside and if there was a cost to doing so. Mr. 15 Archambault noted with the $6.2 million option, all vehicles would be stored inside and would 16 also have the fourth bay at the fire station. He indicated the$5 million option would allow for a 17 three bay solution at the fire station with a lot of public work vehicles being stored outside. Mr. 18 Jeff Oeretel, architect, noted adding the fourth bay in the future would be a great expense with 19 the current design of the fire station. 20 21 Mayor Hodson asked for the cost of the reduction of the fourth bay. Mr. Oertel stated this was a 0 reduction of$180,000 for the fourth bay. 24 Mayor Hodson reiterated the importance of the meeting room area in the fire department as there 25 was not enough room at City Hall. He questioned the life expectancy of the proposed buildings. 26 Mr. Oertel stated the proposed buildings would last a lifetime as they would be concrete 27 structures. 28 29 Jim Wiehoff, 3508 Coolidge Street NE, greeted the Council and thanked them for their efforts. 30 He pointed out that the cost per capita in St. Anthony was $272 for public safety and fire. He 31 noted there are only 8,000 residents in the City of St. Anthony and for families with multiple 32 children this becomes extreme. He noted the City of New Brighton has a cost per capita of 33 roughly$100, Arden Hills was roughly$70, Mounds View was roughly$125, Roseville was 34 roughly$155 and Falcon Heights was roughly$100. He stated he feels that St. Anthony's 35 expenses are out of line. He added that he would like to see this voted on and not have the 36 Council use leased revenue bonds. 37 38 Tom Roman, 2700 30`h Avenue NE, noted he has been a resident since 1979. He stated he 39 appreciates the community he lives in. Mr. Roman commented there was no real hard data that 40 these facilities are going to last 50 years. He suggested the volunteer fireman be allowed to 41 break laws to increase response times. Mr. Roman stated in these economic times, tax increases 42 should be considered cautiously. He noted there are taxes all around residents at a local, state 43 and federal level. Mr. Roman considered reducing the number of fire trucks to reduce the size of the building as the vast majority of the calls within the City are medical. He stated he wants a vote on this issue and not have it decided by the Council. Mr. Roman suggested the Christen site 46 be examined further for contamination and pollution, which would increase City expenses. City Council Regular Meeting Minutes May 13, 2003 Page 6 Don Burr, 2417 301h Avenue NE, noted he has been a resident since 1984. He stated the fire 2 department saved his sons life and indicated he feels the level of service and current response 3 time should be maintained. Mr. Burr stated the services provided in this community keeps him 4 here and should not change as the alternative of outsourcing are not attractive. He indicated 5 action should be taken to rebuild the City's infrastructure to keep the City from deteriorating. He 6 stated he was in favor of adding the additional 600,000 SF into the public works facility to 7 provide them the space and storage they require. Mr. Bun:asked that the Council consider the 8 importance of these buildings to the residents and use the benefits of the economy to the City's 9 favor. He stated he also lives in this City because of the school district and fire department. He 10 noted all of these services provide a great community to live in. Mr. Burr indicated he was in 11 support of the public works facility and new fire station with their increased costs. 12 13 Glen Brown, 3312 Highcrest Road, has been a resident for 13 years. He stated he was a paid on 14 call fireman for the City of Roseville. He stated he is in favor of St. Anthony putting together a 15 new fire station. He encouraged residents to tour the current facility as it does not function at 16 this time. Mr. Brown noted the fire station was there for the residents and can greatly affect and 17 save human life. He stated the only downfall he sees is not adding the fourth bay. Mr. Brown 18 indicated this would greater prepare the City for the future. 19 20 Ron Hansen, 3220 Belden Drive, has been a resident for 34 years. He thanked the task force, the 21 fire department and public works facility for their service. Mr. Hansen stated the public needs a public hearing to have their questions addressed. He indicated $6 million would be the largest expense he has seen since living in the community. Mr. Hansen noted the residents deserve the 24 right to vote on this issue and to continue dialogues. 25 26 George Wagner, 3407 Fordham Court, gave credit to the Study Group for their work. Mr. 27 Wagner stated the need for a fire department and public works facility has been an issue for over 28 a decade. He indicated other issues have been addressed in this time but stated it can no longer 29 be put off as our employees deserve a safe and healthy working environment. Mr. Wagner stated 30 if completed now, there was an opportunity to take advantage of great financing, low 31 construction costs and an interested buyer in the current fire station. He asked that cost and 32 efficiency be compromised but not at the expense that services are limited. Mr. Wagner stated 33 he is in favor of the proposed fire station and public works facility and the expenses that would 34 be associated. 35 36 Bill Volna, 3501 Coolidge Street NE, resident for 30+ years. Mr. Volna addressed information 37 discussed by the task force at an open house. He questioned why so many fire trucks were 38 needed when there is a collaboration between the neighboring communities for mutual aid. Mr. 39 Volna indicated there would be required maintenance between now and the next 50 years that 40 the Council has not considered. He noted he has a bad taste in his mouth about the exhaust 41 system to purge the diesel exhaust from the building and the great need for it. Mr. Volna noted 42 he toured the barn recently and stated they need improved living quarters but doesn't see the 43 need for a 16,000 SF facility with additional large trucks. 16 Stephen Johnson, 3205 Croft Drive, thanked the fire department for their efforts. He noted the 46 chance to improve the fire departments situation in a central location would benefit the City City Council Regular Meeting Minutes May 13, 2003 Page 7 greatly. Mr. Johnson stated it is the City's responsibility to provide fire protection and medical 2 responses in a timely fashion to all members of the community. He noted the public works 3 facility sub-standard with inadequate washroom facilities. Mr. Johnson expressed that he wants 4 the Council to build the facilities the community can be proud of for the next 50 years. 5 6 Mike Gohden, 2901 St. Anthony Boulevard, stated the misinformation was from the City 7 newsletter. He indicated the residents deserve a public vote. 8 9 Julianne Hunter, 3030 Silver Lake Road, noted she is a new resident to the community and 10 enjoys the public services within the village. She feels St. Anthony was a high quality City. Ms. 11 Hunter indicated she feels the task force has done an excellent job in looking at the efficient use 12 of funds for these facilities. She noted she was in favor of the expenditure of these funds for the 13 betterment of the community. Ms. Hunter encouraged the Council to use their vote and create a 14 facility that will last 50+years for the community. 15 16 David Gottlieb, 3301 Edward Street, has lived in the area for 10 years. Mr. Edward noted he is 17 in favor of the Council making a decision as outlined by the task force. He stated the task force 18 has done a wonderful job and feels the Council has made fine decisions in the past with the 19 taxpayer's money. He stated these buildings are for the safety and welfare of the public. Mr. 20 Edward noted the bigger picture was to spend a little more at this time to increase the value of 21 the community for all to enjoy over the long term. He indicated he is willing to pay for the new facilities as proposed and encouraged the Council to vote for the best possible facilities for the community and its residents. 24 25 Lowell Ludford, 2813 Townview Avenue NE, has been a resident for 30+ years. Mr. Ludford 26 noted he felt the public facility study group was given a blank check budget and thanked the 27 Study Group for considering a$5 million budget. He stated the impact of the proposed facilities 28 will increase the residents' taxes. Mr. Ludford suggested an alternative to allow the taxpayers to 29 decide this issue at this fall's election. He noted this would allow for greater education of the 30 public as he felt this was the fair and ethical thing to do. 31 32 Bob Victorine, 3617 Coolidge Street NE, noted he has been a resident since 1969. He stated he 33 moved to the community for its great public services, fire and police. Mr. Victorine noted his 34 neighbors both moved to the area because of the great public services and area school district. 35 He stated he is for the Study Group's recommendations and indicated he elected the public 36 figures on the Council to make these tough decisions and asked that they make this decision and 37 not put it out to a public vote. 38 39 Cheryl Hubbard, 3605 37`h Avenue, stated she supported the central location of the fire 40 department. She noted the men and women of the fire department serve the public and they are 41 our homeland defense. Ms. Hubbard indicated she did have a fire in her home and wanted to 42 thank the department for their efforts in saving her home. 43 Jim Hoska, 3209 3151 Avenue NE, noted he is a volunteer for the fire department. He stated he is familiar with the EMS system and how it works. Mr. Hoska indicated all questions have been 46 answered as to the requirement for 3 fire pumpers to serve the public and keep insurance rates City Council Regular Meeting Minutes May 13, 2003 Page 8 down. He stated the fee for this project greatly outweighs the expense of not having quality 2 facilities. 3 4 Stan Nelson, 3504 Maplewood Drive, stated he has been a resident for over 40 years. Mr. 5 Nelson noted he toured the fire station and public works facility in February. He noted at the 6 open houses, he questioned the increase of space and as to who set those amounts. Mr. Nelson 7 noted there was no response from Mr. Hartmann at that time. He stated the fire station should not 8 require more than a 40% increase in space. Mr. Nelson indicated his tax increase would be 9 roughly$200 a year but noted there would also be other tax implications on the residents from 10 the school district, property taxes, real estate taxes, state taxes, etc. due to changes the legislature 11 is making. He indicated the tax implications were not just $200 a year due to the great changes 12 that would be upcoming in State and City government. 13 14 Mayor Hodson thanked the residents for their comments. 15 16 C. Update on Stonehoue Property by Stacie Kvilvang, Ehlers &Associates, and 17 Authorization to Enter into a Pre-redevelopment Agreement with Amcon Construction. 18 Stacie Kvilvang, Ehlers & Associates, stepped forward to address the Council. Ms. Kvilvang 19 gave a presentation on the Stonehouse property and how the Council acquired that site. She 20 noted this site has a great potential for redevelopment within the Northwest Quadrant. Ms. 21 Kvilvang reviewed a timeline for this property and events that have taken place in the recent future. 24 Ms. Kvilvang noted C-70 has approached the City to purchase this property and redevelop it. 25 She noted Ehlers initiated discussions with potential developers in late 2002 with Amcon 26 presenting redevelopment options to the Council in December of 2002. Ms. Kvilvang indicated 27 if the City were to redevelop the site they would need to invest over$700,000 for parking and 28 infrastructure. She noted this would be a band-aid and would require additional funding in the 29 future. Ms. Kvilvang stated it may not be in the City's best interest to continue with this as the 30 bar needs to be set high with this property as it is at a main intersection within the community. 31 32 Ms. Kvilvang indicated it would be great to get the property back on the tax rolls creating 33 roughly$16,000-25,000 per year. She noted the City is not in the restaurant business and does 34 not know a great deal about it, where it could be better dealt with in the private sector. Ms. 35 Kvilvang stated the profitability would continue to go down as the expenses for the City would 36 continue to increase through insurance, maintenance, etc. 37 38 Ms. Kvilvang stated rehabilitation of the site is not conducive for the current needs out of the 39 site. She indicated the needs of retail tenants are different than those for the restaurant. She noted 40 more would be spent on rehab than if a developer were to start over. Ms. Kvilvang noted the site 41 needs to be updated to meet the needs of current retail delivery standards and refuse removal. 42 43 Ms. Kvilvang indicated profitability is going to be a main concern with this site. She noted there needs to be a clear message in the redevelopment of this site to provide a public liquor store, a restaurant with pull tabs, outdoor eating, a great design for the community. She noted the 46 Amcon proposal has two buildings, one being the restaurant with another building housing the City Council Regular Meeting Minutes May 13, 2003 Page 9 liquor store and additional retail space. Ms. Kvilvang reviewed possible options for the 2 redevelopment of this site. She noted the Council has several choices: 3 4 1. Sell the Stonehouse property and use the proceeds for the fire 5 station/public works facilities. 6 2. Have a lease with the developer of the new liquor store 7 3. Own the land and liquor store and lease it back to the developer. 8 4. Deed the land to the developer with a reduced lease. 9 5. Own the liquor store building and sell the other portion using the 10 proceeds to pay down the fire station or to build the liquor store. 11 12 Ms. Kvilvang noted the preferred options would be to continue to own the property so there is 13 not a continued expense. She stated owning the land and liquor selling the remaining land or 14 deeding it to the developer for additional uses. She indicated expenses for a new liquor store 15 would need to be paid for and should be considered with the decision as to what happens with 16 this land. 17 18 Ms. Kvilvang reviewed an interim location of the liquor store but noted this could be a negative 19 factor for the City. She noted there is asbestos in the current structures. Ms. Kvilvang stated she 20 has spoken with the current liquor store employees to create a new interior layout and stated title 21 work has begun. 0 Ms. Kvilvang noted a County easement would need to be obtained from Hennepin County. She 24 stated they are looking to deed that over to the City. The building on the corner may need to be 25 shifted east and south. 26 27 Ms. Kvilvang reviewed a possible time line with the Council if they chose to proceed. She noted 28 the construction timeline would take roughly 5-6 months. She stated there are three key items 29 when considering the site's future: money has to be spent on this site; either band aid the site; or 30 invest and redevelop the site to meet the needs of the City. She encouraged the Council to look 31 at the long-term effects of the liquor store on the City. 32 33 Jim Winkels, Amcon Construction, stepped forward to address the Council. Mr. Winkels stated 34 pull-tabs are not an issue at this restaurant and noted his organization has dealt with 35 municipalities in the past. He noted he understands the cash flows needed to the City with this 36 restructuring. Mr. Winkels noted his organization is ready and waiting to work with the City if 37 they make a decision on this pre-development agreement. 38 39 Mayor Hodson indicated there was a resolution before the Council. 40 41 Motion by Councilmember Thuesen re: Resolution 03-037 to authorize the Mayor and City 42 Manager to enter into a Pre-redevelopment Agreement with Amcon Construction. 43 16 Motion carried unanimously. City Council Regular Meeting Minutes May 13, 2003 Page 10 Mayor Hodson thanked the Council for moving forward on this issue. He noted he looks 2 forward to the redevelopment of this site. 3 4 Mayor Hodson called for a five minute recess at 10:06 p.m. 5 6 Mayor Hodson called the meeting to order at 10:15 p.m. 7 8 D. Discuss Renewal of On-Sale Liquor Store Insurance and Consider Resolution 03-035 9 reaardin Cog the Stonehouse 10 Dan Crawford, Sunrise Park Insurance Agency, stepped forward to address the Council 11 regarding the Stonehouse. Mr. Crawford noted they went to four different insurance carriers 12 with only one being an option as being the Minnesota Joint Underwriting Association at a rate of 13 $72,075. He noted there was a$48,060 increase over last year. Mr. Crawford noted an interim 14 quote could be sought. 15 16 Councilmember Thuesen asked why so few insurance companies quoted this site. He questioned 17 if the risk was too great. Mr. Crawford indicated this is a cyclical business, where they suffer 18 losses and then increase profits. 19 20 Councilmember Faust asked if this policy could be canceled part way through the year. Mr. 21 Crawford indicated this was the case, as the City could go on a month to month payment 0 schedule. 24 Mayor Hodson thanked Roger Larson for his financial recap and stated he would not want 25 to keep the Stonehouse open while it is losing money. 26 27 Motion by Councilmember Faust to adopt Resolution 03-035, re: Closing the Stonehouse Bar 28 and Restaurant. 29 30 Discussion: 31 Councilmember Horst questioned if a month to month payment plan would be feasible. Roger 32 Larson, Finance Director, stated he prepared a graph for Council showing an option to keep it 33 open until September. He indicated this would be an option, but stated the profitability would be 34 uncertain. Mr. Larson stated starting June 1, 2003 the profits would be less than incomes, based 35 on the new insurance rates. 36 37 Councilmember Faust asked how the August timeline ties into this resolution. Mr. Morrison 38 stated this would work well because we have a redevelopment opportunity and would allow for 39 the closing of the off-sale as of May 31, 2003. 40 41 Councilmember Sparks asked if greater notice should be given to the employees at this site. Mr. 42 Morrison noted discussions have been held with the employees at the liquor store and they have 43 been made aware of the possibility of redevelopment. 0 Mayor Hodson felt the City should not be in the restaurant business and asked if the resolution 46 could be amended to read June 30, 2003 to allow for flexibility for special summer events. City Council Regular Meeting Minutes May 13, 2003 Page 11 Councilmember Sparks asked for the average profit through August each year. Mr. Larson noted 2 this is roughly$55,000, if kept open through August 31, 2003. If closed on May 31, profits 3 would be approximately$37,000. He stated if closed in August 31, 2003 would lose $10,000. 4 5 Councilmember Faust stated with the right to reopen for a special event this summer within the 6 motion would be wise and to change the effective date to May 30, 2003. 7 8 Motion by Councilmember Sparks to amend the motion to have the right to reopen the 9 Stonehouse for a special event this summer and to change the effective date to May 30, 2003. 10 11 Motion carried unanimously. 12 13 Motion Thuesen to continue the meeting after 10:30 p.m. 14 15 Motion carried unanimously. 16 17 VII. GENERAL POLICY BUSINESS OF THE COUNCIL. 18 None. 19 20 VIII. REPORTS FROM CITY MANAGER AND COUNCILMEMBERS. 21 Mr. Morrison reported that a work session would be held next Tuesday. The City is getting close with Glen Pratt on terms for the Northwest Quadrant Redevelopment. Mr. Morrison stated that on June 24, 2003 there will be a public hearing on the Autumn Woods for a townhome project. 24 He indicated the initial bid for the property is $225,000 with $34,000 in tax base each year. 25 26 Councilmember Horst had no report. 27 28 Councilmember Sparks reported a resident had called Qwest regarding a 10 cent tax fee that has 29 been wrongly paid by our residents. She noted numerous residents are paying the extra tax in the 30 55418 zip code, as they are assumed to be Minneapolis residents paying a higher tax base. She 31 suggested a letter be drafted to Qwest to address this issue. Councilmember Sparks noted 32 Village Fest would be held on August 2, 2003 with the parade on August 1, 2003. 33 34 Councilmember Thuesen reported that he spoke with some of the youth from the Sister City 35 Program to address some of our kids about life in Finland. 36 37 Councilmember Faust reviewed his schedule over the past two weeks and noted the Council has 38 been very busy serving the City and its residents. He reviewed the special events that he has 39 been a part of. 40 41 Mayor Hodson indicated he had three people shadowing him this past month, which was a great 42 success. He noted he attended a school board meeting recently as well. Mayor Hodson stated 43 60-70 residents attended the State of the City. He indicated the Blue Ribbon Task Force has been participating from all areas of the spectrum, business and legislators to articulate what types 46_ of services should the City be considering in the NW Quadrant and for the City of St. Anthony. 46 He noted there will be many unique opportunities for the City with this redevelopment. City Council Regular Meeting Minutes May 13, 2003 Page 12 IX. INFORMATION AND ANNOUNCEMENTS. 2 None. 3 4 X. MISCELLANEOUS INFORMATIONAL DOCUMENTS. 5 None. 6 7 XI. ADJOURNMENT. 8 Motion by Councilmember Faust to adjourn the meeting at 10:42 p.m. 9 10 Motion carried unanimously. 11 12 Respectfully submitted, 13 14 15 Heidi Guenther 16 TimeSaver Off Site Secretarial, Inc. 17 18 Mayor 19 ATTEST: 1.4 20 City Clerk 21 • 0 Connie Kroeplin rom: Michael Mornson ent: Tuesday, May 06, 2003 3:19 PM To: Council Members; Jay Hartman; Joel Hewitt; Mike Larson; Roger Larson Cc: Connie Kroeplin; Susan Hall Subject: May 13th Agenda for Work session The May 13 work session will start at 5pm in the Multi-purpose room at the community center. This is the room across from the council chambers. Sandwiches will be provided. The agenda for the work session for the meeting is as follows: 1. Report from Task force Chair and Architect on Options to get costs under 5 million 5pm to 6:15pm 2. Discussion of storehouse insurance and closing. 6:15pm to 6:40pm • • 1