HomeMy WebLinkAboutCC MINUTES 05232006I CITY OF ST. ANTHONY
2 CITY COUNCIL REGULAR MEETING MINUTES
3 May 23, 2006
4
5
6 CALL TO ORDER.
7 Mayor Faust called the meeting to order at 7:00 p.m.
9 PLEDGE OF ALLEGIANCE.
10 Mayor Faust invited the Council and audience to join him in the Pledge of Allegiance.
11
12 ROLL CALL.
13 Present: Mayor Faust; Councilmembers Hal Gray, Dick Horst, Randy Stille, and
14 Brian Thuesen.
15
16 Absent: None.
17
18 Also Present: City Manager Mike Morrison and City Attorney Jay R. Lindgren.
19
20
21 CONSIDERATION, DISCUSSION, AND POSSIBLE ACTION ON ALL OF THE FOLLOWING
22 ITEMS.
23
24 I. APPROVAL OF May 23, 2006 CITY COUNCIL MEETING AGENDA.
25 Councilmember Horst requested that Item 3A be removed from the Consent Agenda.
26
27 Motion by Councilmember Thuesen, seconded by Councilmember Stille, to approve the City
28 Council Meeting Agenda of May 23, 2006 as amended to remove Item 3A from the Consent
29 Agenda.
30
31 Motion carried unanimously
32
33 II. PROCLAMATIONS AND RECOGNITIONS.
34 A. Recognizing Mrs. Wvatt's Third Grade Class at Wilshire Park Elementary for
35 participating in the Junior Achievement Program
36
37 Mayor Faust recognized Mrs. Wyatt and her third grade class from Wilshire Park Elementary for
38 participating in the Jr. Achievement. He turned the presentation over to City Manager Mornson.
39 City Manager Momson welcomed Mrs. Wyatt and her students. He stated that a video of the
40 evening's presentations will be given to the class to play again later.
41
42 City Manager Morrison explained the purpose Junior Achievement (JA) to the Council and the
43 audience as a program designed to educate and inspire young people to value free enterprise,
44 business, and economics to improve the quality of their lives. The mission of JA is to ensure that
45 every child has a fundamental understanding of the free enterprise system.
46
47 Junior Achievement was founded in 1919 by Theodore Vail, President of American Telephone
48 and Telegraph; Horace Moses, President of Strathmore Paper Co.; and Senator Murray Crane of
49 Massachusetts. Its first program, Junior Achievement Company Program, was offered to high
City Council Regular Meeting Minutes
May 23, 2006
Page 2
1 school students on an after- school basis. In 1975, the organization entered the classroom with the
2 introduction of Project Business for the middle grades. Since that time, JA has expanded it
3 activities and broadened its scope to become the leader of in- school and after- school economic
4 education programs for students in grades K -12. Junior Achievement is in nearly 100 countries
5 worldwide and reaches 6.6 million students each year.
7 During the five -week program, City Manager Mornson and these energetic students participated
8 in five areas. During the fist week, City planning and zoning and the development of Apache
9 Plaza were the topics. They discussed how important it is to have residential areas separate from
10 a commercial district. City Manager Mornson praised the students for doing a marvelous job as
11 future city planners and or as architects.
12
13 In week two each student had a business to construct. They talked about the relationship between
14 a building inspector and a contractor and the importance of working together. Blue prints and
15 zoning maps were used to create their own city known as Mini City. Each of their businesses,
16 homes, or apartments was put on the zoning map.
17
18 The students became restaurant owners in week three. Week four saw these students become
19 newspaper reporters and how to work to get messages out to the public. The students wrote their
20 own newspaper articles and learned to meet deadlines. City events and city news were the topics
21 of the articles. During week five some of the third graders became bank employees and some
22 became customers. They learned to write checks, make deposits, and got paid. The students all
23 did a great job.
24
25 City Manager Morrison called Mayor Faust to the front to present each student with a certificate
26 for participating in the Junior Achievement Program. A group photo was taken with City
27 Manager Morrison, Mrs. Wyatt, and the students. Mayor Faust congratulated the students and
28 expressed how important it is for children to learn about the City, making decisions, economic
29 ideas and planning. He also thanked Mrs. Wyatt for her hard work and participation with JA.
30
31 III. CONSENT AGENDA.
32
33 2006 C,.upeii ?,reef:. �,r:., q-s
34 B. Consider licenses and permits
35 C. Consider payment of claims
36 D. Resolution 06 -052; Authorizing the use of the Automark Ballot Marking Device in all
37 elections for Ramsey County
38
39 Motion by Councilmember Stille, seconded by Councilmember Gray, to approve the consent
40 agenda as amended to remove Item 3A.
41
42 Motion carried unanimously.
43
44 A. Consider May 9, 2006 Council Meeting Minutes
45
46 Motion by Councilmember Horst, seconded by Councilmember Stille, to approve the May 9,
47 2006 Council meeting minutes.
City Council Regular Meeting Minutes
May 23, 2006
Page 3
2 Ayes — 4. Nays — 0. Abstain —1 (Horst) Motion carried
3
4 IV. PUBLIC HEARINGS.
5 None.
7 V. REPORTS FROM COMMISSION AND STAFF.
8 A. Resolution 06 -053• Approving a Conditional Use Permit for 2922 Pentagon Drive for a
9 Body Tanning Salon.
10
11 Mayor Faust welcomed Planning Commissioner Stromgren to the meeting and explained he is
12 standing in for Commissioner Heath Gaylon who was called out of town.
13
14 Commissioner Stromgren reviewed the proposal for the Conditional Use Permit for 2922
15 Pentagon Drive for a tanning salon to be operated by Deborah Tomberlin who is a resident of the
16 Village. Tanning salons are a permitted conditional use under Section 1635.03(k) of the zoning
17 code. The Planning Commission reviewed the application the month before during a concept
18 review. There were very few changes to the inside of the building and only a change of signage
19 falls within the signage plan for the shopping center. The Planning Commission recommended
20 approval of her plan subject to the following conditions: that Ms. Tomberlin follow the shopping
21 center signage plan including colors and area; that she complete reviews with City staff, fire and
22 building inspections; and that she operate according licensure requirements of the State.
23
24 Mayor Faust invited Ms. Tomberlin to address the City Council to answer questions. Mayor
25 Faust asked if the hours of operation were adequate for her business. Ms Tomberlin assured the
26 Mayor that the hours are appropriate for the needs of potential customers.
27
28 Motion by Councilmember Gray, seconded by Councilmember Thuesen, to approve Resolution
29 06 -053; Approving a Conditional Use Permit Pentagon Drive for a Tanning Salon at 2922.
30
31 Motion carried unanimously.
32
33 Mayor Faust congratulated Ms. Tomberlin and welcomed her to the community as a new
34 business owner.
35
36 B. Silver Lake Road/37t' Avenue Tony Hennelmann WSB presenting.
37
38 Mayor Faust welcomed Craig Twinem from Hennepin Count to the meeting. Mr. Twinem
39 introduced the members of the project team looking at the 37� Avenue NE at Silver Lake Road
40 Lane Configuration project. The project team consisted of Mike Morrison, City Manager; Jay
41 Hartman, Director of Public Works; Dan Solar and Peter Lemke, Ramsey County; Tony
42 Heppelmann.and Dan Falkner, Consultants; and Ross Jentink, EIT.
43
44 Mr. Twinem recapped the February 14, 2006 appearance before the Council seeking preliminary
45 layout approval for the reconstruction of Silver Lake Road. At that time, the Council voiced a
46 number of questions and concerns on the intersection of 37ffi Avenue and Silver Lake Road. The
47 project team recounted traffic numbers at the intersection of 37t` Avenue and Silver Lake Road
City Council Regular Meeting Minutes
May 23, 2006
Page 4
1 and updated the previous traffic count. They also took a more in -depth look at the future traffic
2 pattern forecast. Using the expanded traffic study, they reran the traffic model.
4 Mr. Tony Heppelmann came before the Council to present their findings. The purpose of this
5 study was to determine potential traffic patterns of the intersection Silver Lake Road and 37`h
6 Avenue N.E. in St. Anthony. The City is considering reducing the southbound approach on
7 Silver Lake Road from a through lane and a through/right -turn lane to one through lane and an
8 exclusive right -turn lane. The left-turn lane would remain unchanged. Currently, Silver Lake
9 Road is a two -lane road to the south of 37`h Avenue N.E. and a four -lane road to the north.
10
11 The traffic analysis of this intersection considers forecast volumes for 2007, 2017 and 2027 to
12 include background growth and additional traffic from local development for 37th Avenue ME,
13 Wal -Mart access and 39`h Ave N.E. on Silver Lake Road. Also considered is Silver Lake Road at
14 37`h Avenue N.E. with the existing lane geometry and forecast volumes. Finally, an operational
15 analysis of Silver Lake Road at 37`h Avenue N.E. with modified lane geometry on the
16 southbound approach including an exclusive left-turn lane, through lane and right -turn lane with
17 the forecast volumes.
18
19 Mr. Heppelmann explained that historically over the last 20 to 25 years, a large fluctuation in
20 traffic volume has occurred. Local redevelopment and increased commuter traffic to and from
21 the Minneapolis area has caused a modest growth of about 3.5 percent on Silver Lake Road over
22 the last ten years. This growth rate is high for similar roadways in Hennepin and Ramsey
23 Counties, but not unexpected, due to the redevelopment of the old Apache Mall site. Hennepin
24 and Ramsey Counties have seen an average of 1 percent to 1.5 percent growth per year on
25 similar roadways.
26
27 From April 4 to April 6, 2006, intersection turning movements were counted during the a.m. and
28 p.m. peak three -hours by Ramsey County. The intersections of 37th Ave. N.E. at Silver Lake
29 Road, Wal -Mart access at Silver Lake Road, and 39th Ave N.E. at Silver Lake Road were the
30 target areas. Looking at how traffic may grow beyond the results of the study, the project team
31 estimated a growth of approximately three- quarters percent per year. This estimate may be on
32 the low side.
33
34 Mr. Heppelmann pointed out that the existing lane configuration operates better and has a
35 shorter queue length of vehicles on Silver Lake Road than the alternative of dropping a
36 southbound through lane at 37th Avenue N.E. Removing the southbound through lane will result
37 in an increased queue of vehicles on the Silver Lake Road southbound approach to 37`h Avenue
38 N.E. thus blocking access into and out of the Wal -Mart parking lot during a.m. and p.m. peak
39 hours. An increased queue of vehicles on Silver Lake Road northbound will block 36th Avenue
40 N.E.
41
42 Mr. Heppelmann indicated it is desirable to carry two through lanes on Silver Lake Road through
43 the 37th Avenue N.E. intersection. The 2027 modeled volumes, with only one southbound
44 through lane on Silver Lake Road indicate issues such as vehicles backing up in the p.m. peak
45 hour past the Wal -Mart access on southbound Silver Lake Road. Vehicles exiting the Wal -Mart
46 parking lot onto Silver Lake Road will experience significant delays because of the backup on
47 Silver Lake Road. Because of the delay, vehicles may exit the parking lot into the right lane on
City Council Regular Meeting Minutes
May 23, 2006
Page 5
1 Silver Lake Road and may merge or weave into the through and left -turn lanes that already have
2 a significant backup of vehicles. This may cause blocking of the right -turn lane and will further
3 degrade the operation of Silver Lake Road.
4
5 As this intersection becomes more congested, it is likely that southbound vehicles on Silver Lake
6 Road will try to avoid the long queues and squeeze into the single through lane at the intersection
7 of 37th Avenue N.E. rather than waiting at the end of the queue. This will create safety problems
8 and possible blockage of the right -turn lane.
9
10 Northbound traffic that backs up on Silver Lake Road south of 370' Avenue N.E. will be longer
11 and could potentially block 366h Avenue N.E. The queue will be longer with only one through
12 lane southbound because more green light time will be needed for southbound traffic on Silver
13 Lake Road to minimize the length of the southbound backup on Silver Lake Road.
14
15 The additional delays and congestion expected with only one southbound through lane may
16 cause drivers to cut through local residential streets to avoid the 37a` Avenue N.E. and Silver
17 Lake Road intersection. The streets in these residential areas are not equipped to handle the
18 additional traffic. Mr. Heppelmann said this is not going to happen immediately, but over the
19 next 10 years as developments are built and traffic grows these problems will begin.
20
21 Councilmember Gray indicated this assumes there are no changes to people's driving habits or
22 mass transit. Mr. Heppelmann said no assumptions were built in for mass transit. The project
23 team believes their forecasts are on the low side.
24
25 Councilmember Gray stated the chart indicates there is more of a p.m. problem than an a.m.
26 problem. Mr. Heppelmann and the project team were surprised to see the problem in the a.m. but
27 there is a greater problem in p.m. Councihnember Gray asked if the assumption is that people
28 will not be diverted to County Road 88 or 35W. With the progression and use of letter grades, it
29 looks like the current option, will be a problem after 2027. Mr. Heppelmann believes people will
30 try to avoid backups in traffic and find their shortcuts. He stated the project team did not look
31 past 2027. Traffic volumes could reach a level E as regional systems fill up and 35W may
32 become more congested and other streets might be the least congested. It is hard to predict what
33 will happen.
34
35 Councilmember Thuesen asked Mr. Heppelmann to define "level of services" and "vehicle
36 queuing" for the audience. Mr. Heppelmann explained that "level of services" is the average
37 vehicle delay at an intersection. He defined "queuing" as vehicles stopped at an intersection or
38 waiting for a stopped vehicle, how far back they are waiting, and how many vehicles are stored
39 in the left turn lane.
40
41 Councilmember Stille asked how many cycles a southbound car will sit through. According to
42 Mr. Heppelmann, the project team's research indicated drivers often waited through two red
43 lights.
44
45 In closing, based on the new analysis performed by the project team, Hennepin County
46 recommends maintaining the geometrics presented in the preliminary analysis of February 14,
47 2006. The recommendation is to continue two southbound lanes and transition with safer
City Council Regular Meeting Minutes
May 23, 2006
Page 6
1 geometrics in merging the one lane into the inside lane. Ramsey County agrees with this
2 recommendation.
4 Mayor Faust reminded the Council this is not a decision item tonight. He wants to make sure this
5 is planned out appropriately through 2027. He expressed concern with putting this traffic on
6 neighborhood City streets not equipped to handle it. Also, safety and the safe movement of
7 traffic is the number one issue. Mayor Faust expressed his appreciation to the project team for
8 all their hard work and their extra due diligence. He stated it is good to see the two counties
9 working together on this.
10
11 Informational, no action required at this time.
12
13 C. Ordinance 06 -002; 400.14 Prohibited Discharges into Sanitary Sewer System Todd
14 Hubmer. WSB presenting. (1St. Reading)
15
16 Mayor Faust welcomed Todd Hubmer, WSB, to the meeting.
17
18 Mr. Hubmer presented Ordinance 06 -002 Prohibited Discharges into Sanitary Sewer System.
19 This ordinance was created to address the inflow and infiltration (I/I) entering the City's sanitary
20 sewers through illicit private connections to the sewer. Efforts to reduce UI have been initiated
21 by the City in an attempt to address a sanitary sewer surcharge and potential demand charge
22 imposed by the Metropolitan Council Environmental Services (MCES). The 2006 St. Anthony
23 UI Reduction Plan identified illicit private connections as the primary source of I/I and
24 recommended action is taken to eliminate such connections. This ordinance provides legal
25 authority to the City to administer a program to eliminate these connections.
26
27 Ordinance 06 -002 defines allowable discharges into the sanitary sewer system. It defines an
28 illicit connection to the sanitary sewer that typically contributes to I/I. The correct way to
29 disconnect an illicit connection and the proper configuration for utilizing a sump -pump is
30 defined in the ordinance.
31
32 Ordinance 06 -002 gives the City the right to inspect private property for illicit connections. A
33 property owner of an illicit connection must correct the problem within a specific timeframe or
34 be subjected to a utility surcharge enforced by the City. Violations to this section of the
35 ordinance are a misdemeanor and could be prosecuted by the City in criminal court.
36
37 Ordinance 02 -006 allows the City to conduct a follow -up inspection to verify the property
38 remains compliant with ordinance rules. If residents do not allow inspections performed by the
39 city or if they do not disconnect illicit connections, a surcharge of $100 per month and the
40 prohibiting of any future issuance of permits may be imposed. Property owners will be allowed
41 to pay for disconnections over a five year period by using an assessment to the parcel. The
42 ordinance also allows for waivers for parcels not able to meet the requirement due to public
43 safety concerns.
44
45 Mr. Hubmer explained this is the first reading of Ordinance 06 -002. It is the first phase of the III
46 Reduction Program. The Metropolitan Council will waive the surcharge fee and will accept the
47 St. Anthony UI plan in lieu of the surcharge program. The surcharge fee of about $1 million
City Council Regular Meeting Minutes
May 23, 2006
Page 7
1 would be assessed over 10 years. Verbal approval has been given to waive the fee and written
2 approval will arrive soon.
4 Councilmember Horst stated the City currently has an ordinance on sump pump and illegal
5 dumping. He questioned why it is necessary to add this ordinance. Mr. Hubmer explained the
6 language in the ordinance is more specific on the inspections and the rights of the City. The
7 surcharge fee for those individuals who do not allow the inspections or correct the illicit
8 connection to the sewer system is better explained in the ordinance also. This is a proactive
9 ordinance rather than a reactive one.
10
11 Mr. Hubmer advised the inspections are expected to begin fall of 2006. If an individual does not
12 comply, the surcharge of $100 per month will be imposed until they allow the inspection. Once
13 the inspection is complete, individuals have until 2007 to comply. If there is a financial hardship,
14 the resident can talk to the finance director to assess the property owner over a five year period.
15 This assessment will include interest to the city for handling the administrative costs and also for
16 borrowing this money over a five year period
17
18 Mayor Faust conveyed that he wants everyone to understand that the City is serious about fixing
19 the problem and there are repercussions for noncompliance. This is a new aggressive approach to
20 addressing a water problem from the past.
21
22 Councilmember Thuesen stressed the importance of continuing community-wide communication
23 so residents understand what this is about. He explained this is not the "big brother" heavy
24 handed approach to fixing this problem
25
26 Mr. Hubmer confirmed a rigorous public information process related to this process will
27 continue in the form of newspapers and flyers. The plan is to accommodate the needs of the
28 residents and to give them information on the timeframe and the process for this project. The
29 City is very sensitive to the fact they will be entering private homes.
30
31 Councilmember Stille ask what the average cost to the residents would be. Mr. Hubmer
32 indicated the average cost will be approximately $1200 to $2000 for the residents. He
33 encouraged residents to be creative and combine their effort with neighbors to hire the plumber
34 and pool resources to lower the costs.
35
36 Mr. Hubmer reminded everyone that if the City does not come into compliance with the
37 Metropolitan Council's I/I goal for St. Anthony Village, future demand charges of about
38 $600,000 per year per occurrence will be placed on St. Anthony Village. This money would
39 come out of the sewer fund for which the City would have to raise funds. There are significant
40 savings to the City to come into conformance.
41
42 Councilmember Horst asked if the inspections will be done at the same time as the installation of
43 water meters and sewers. Mr. Hubmer indicated that the plan is to do both at the same time. The
44 goal is to get both completed over the winter months.
45
City Council Regular Meeting Minutes
May 23, 2006
Page 8
1 Mayor Faust stated it behooves us all to cooperate with the project. He encouraged residents to
2 keep at it with an open mind, since this is a minimally invasive and less costly effort than
3 noncompliance.
4
5 Motion by Councilmember Horst, seconded by Councilmember Gray, to approve the first
6 reading of Ordinance 06 -002; 400.14 Prohibited Discharges into Sanitary Sewer System.
° Motion carried unanimously.
9
10 D. Request from Developer to extend the Deadline for the Development Agreement between
11 the City of St. Anthony and Amcor (Motion Only,)
12
13 City Manager Momson presented a request from Mr. Robert Foster who represents the St.
14 Anthony Restaurant Group. Mr. Foster requests a 30 day extension to obtain a certificate of
15 occupancy. On August 23, 2005 the Council approved a resolution to give the developer an
16 extension to until June 1 to obtain a certificate of occupancy to complete the restaurant. At that
17 time the Council also agreed to reduce the size of the restaurant from 6,000 square feet to 4,500
18 square feet. The developer paid $50,000 for the delay at that time.
19
20 City Manager Morrison included background information in the packet to the Council members.
21 A letter from the City Attorney identifying the City's legal obligations is part of this packet. He
22 noted there is quite a history with this project going back several years. City Manager Morrison
23 offered three motions for the Council to consider: approve a 30 day extension, approve a 30 day
24 extension with a monetary penalty, or table the request and do nothing until June 1 and talk to
25 the City Attorney about options at that time.
26
27 Mayor Faust invited Mr. Foster to address the Council.
28
29 Mr. Foster addressed the City Council along with Mr. Peterson, the restaurant owner. He
30 explained that in August 2005, the expectation was for Amcon St. Anthony, LLC and the
31 contractor to complete and turn over the building on or about February 1, 2006. Mr. Peterson did
32 not anticipate being before the Council again asking for an extension. Pursuant to its lease
33 agreement with Mr. Peterson, who is doing business at St. Anthony Restaurant Group, Inc., the
34 building would be turned over on or about February 1.
35
36 Mr. Peterson told the developer he anticipated it would take him three months to complete the
37 lease -hold improvements and obtain a certificate of occupancy. The developer did what they
38 were supposed to do. The shell of the building was completed on February 1 and turned over to
39 Mr. Peterson. When he took over the building on February 1, he applied for a license from the
40 State Health Department and for a plumbing license. Mr. Peterson paid the additional fee to
41 expedite the process. Twice the State of Minnesota plumbing licensing department told Mr.
42 Peterson his applications had been lost. It took nearly two months to get the license. This delay
43 caused the project to stop. Mr. Foster stated this was not the fault of the developer or Mr.
44 Peterson, rather the fault of the State of Minnesota Licensing Department.
45
46 Mr. Peterson is also a roofmg and general contractor in addition to being the restaurateur. He is
47 working diligently to complete the project. The building is currently framed, sheet rocked, ready
City Council Regular Meeting Minutes
May 23, 2006
Page 9
1 for paint, and supplies are ordered for completion of the project. Mr. Peterson believes he can
2 complete the project with the 30 day extension.
4 Mr. Peterson addressed the Council to show what the restaurant will look like upon completion.
5 Using samples, he presented the color scheme for the interior, fabric samples, woodwork, and
6 tile samples. The restaurant will have the look and feel of a village pub. The Council had
7 previously stressed it have a feel other than a sports bar. Mr. Peterson believes he will
8 accomplish this request. He anticipates the request for the certificate of occupancy will be
9 submitted the third week of June and received by the end of June. He plans to open the second
10 week of July.
11
12 The Council had earlier expressed they would like to see charitable gambling have an
13 opportunity in this new restaurant. Mr. Foster, Mr. Peterson and the Northeast Lions met with
14 the Sports Boosters to bring charitable gambling into this facility. An agreement was reached and
15 there is an area designated for charitable gambling.
16
17 Mr. Foster pointed out that the developer paid a fee of $50,000 to the City to get an extension
18 last year. Because the current delay was not caused by the developer or Mr. Peterson, they are
19 seeking a compromise. They are willing to give $100 per day as a donation to the Sports
20 Boosters until they receive the certificate of occupancy.
21
22 Councilmember Horst asked Mr. Foster if he is working with other businesses that have had the
23 same problem. Mr. Foster expressed that the State of Minnesota is notorious for plumbing permit
24 delays. He gave examples of businesses that have had delays as long as four months.
25
26 Councilmember Stille asked why the developer did not write in a contingency. Mr. Foster
27 reminded the Council that the developer did turn the property over in a timely manner, as they
28 were obligated to do, with four months to spare. Mr. Peterson was shocked when his applications
29 were lost twice. Mr. Peterson is inexperienced in getting plumbing permits and the project
30 plumbers did not believe it would take this long.
31
32 Councilmember Gray indicated he would like to see the City move forward with this. He feels
33 the offer to the Sports Boosters is generous. He stated he is excited to see the project completed
34 and does not want to make it more difficult for Mr. Peterson to do business in St. Anthony.
35
36 Mr. Foster indicated there is a great deal of excitement generated around the anticipated opening
37 of the restaurant. With the opening of this business, the shopping center would be 100% leased.
38 The developer plans to use the City landscaper to create a coordinated park -like setting as a
39 gateway to the City.
40
41 Mayor Faust reiterated the options are to approve, deny or table this request. He asked City
42 Attorney Jay Lindgren what the ramifications are if this was tabled. City Attorney Lindgren
43 stated the property would revert back to the City if a certificate of occupancy is not granted by
44 June 1. His position at this time would be that as a matter of right, it reverts on June 1 unless the
45 City grants an extension.
46
City Council Regular Meeting Minutes
May 23, 2006
Page 10
1 Councilmember Stille asked what the title status will be on June 1. City Attorney Lindgren
2 indicated he has more questions than answers as he is unaware of the financing obligations on
3 this property. The amendment was created to be a recordable document. There is notice to all the
4 parties that this right exists and the City's rights predate other documents. It is hard to predict
5 what the courts would decide if the City took back the lot. Councilmember Stille feels it would
6 be harsh to take this lot back and would not recommend that. However, when the deal was cut
7 for $50,000, the City had turned down an offer for $150,000. At that time, the Council did not
8 have enough time to consider the first offer by the coffee shop. If they would have had more time
9 to think about it, they may have asked for $75,000. Councilmember Stille feels the developer
10 should have made every effort to make this building available sooner. He suggests a fee of
11 $25,000 should be negotiated with the developer and not take back the lot.
12
13 Councilmember Horst stated he knows it is difficult when dealing with independent government
14 agencies. He sees no need to "play hardball" on this project as this is really no fault of the parties
15 involved. He suggests the 30 day extension be given and welcome Mr. Peterson into the
16 community rather than to take advantage of a situation out of the control of the developer and
17 Mr. Peterson. He would like to see this move forward.
18
19 Councilmember Thuesen stated Councilmember Stille brought up good question of anticipation
20 of plumbing; however, he would like to see this move forward. He agrees the Council should
21 approve the 30 day extension and accept the offer of $100 per day to the Sports Boosters. He
22 does not feel this is the time to renegotiate additional fees as Mr. Peterson worked in good faith
23 to finish the project. He is not in favor of penalties.
24
25 Councilmember Gray expressed agreement with Councilmembers Horst and Thuesen. He
26 believes that Mr. Peterson would suffer more than the developer. The project is nearly complete
27 and it serves no purpose to not move forward. He recommends and is in favor of a 30 day
28 extension.
29
30 Councilmember Stille stated he is not trying to make this ugly or take advantage of the situation.
31 He is trying to make this equitable as he believes the City was shortchanged in the negotiations
32 last time. He is only trying to rectify the shortcomings through his comments and
33 recommendations.
34
35 Mayor Faust indicated he is not interested in taking the building. He is interested in the process.
36 This is the third change to the agreement. If the Council is willing to approve this request, he
37 would like to see something that says they will not come back for a fourth time or severe
38 penalties will be imposed.
39
40 Councilmember Horst stated everyone would obviously be disappointed if it goes past the 30
41 days. He is comfortable when Mr. Peterson's attorney says this will be open in June. Should this
42 not happen, some serious penalties should be imposed.
43
44 Motion by Councilmember Horst to approve the Request from Developer to extend the Deadline
45 for the Development Agreement.
46
47 Motion died for lack of a second.
City Council Regular Meeting Minutes
May 23, 2006
Page 11
2 Councilmember Thuesen recommended that the penalties be laid out in the event of a fourth
3 request.
4
Motion by Councilmember Gray, seconded by Councilmember Thuesen, to grant an extension to
July 1, 2006 with $100 per day to the Sports Boosters and a $1000 per day penalty until it is
finished,
9 Councilmember Horst asked for clarification as to who $1000 per day is from. City Attorney
10 Lindgren stated this would require a second amendment between the City and Amcon. Amcon
11 would have to agree to this.
12
13 Councilmember Horst indicated this gives Amcon a basis to fight this. In the meantime, he
14 believes the completion of the project will probably happen in the next 30 days. The plumbing
15 permit caused the delay. Mr. Peterson is not trying to wiggle out of his contract.
16
17 Mr. Foster indicated he has had numerous conversations with Amcon St. Anthony, the owner of
18 the property. He has the authority to accept the motion as given.
19
20 City Attorney Lindgren stated 30 days is a Saturday and July 40' is a holiday and suggested
21 making it July 5, so this must be the stated date.
22
23 Councilmember Horst told the Council members that the Sports Booster donation is not the
24 concern of the City and should not be part of the motion. This is a voluntary donation, but the
25 City should not obligate them to do so.
26
27 Councilmember Gray stated the donation was only an acknowledgement.
28
29 Mayor Faust said the $100 per day donation to the Sports Booster was made in good faith. He
30 stated $100 per day to the Sports Booster and $1,000 per day if the certificate of occupancy is
31 not granted by July 5 are the only penalties placed in the agreement if they do not complete.
32
33 Councilmember Stille ask what happens if the restaurant does not get finished.
34
35 City Attorney Lindgren asked if the $1000 per day penalty is in lieu of or on top of the reversion,
36 or does it make the reversion come at later period of time.
37
38 Councilmember Horst indicated this was not well thought out and recommended the Council go
39 back to his motion. He noted that everything in the developer's agreement is still in force. He
40 believes the project will be completed in the 30 days and if not the Council can relook at the
41 penalties available.
42
43 City Attorney Lindgren reiterated that if this is tabled, it takes it past the 30 day extension. He
44 suggested the Council adopt a motion tonight that asks for new conditions; Amcon will have to
45 agree. If Ameon chooses not to agree, the City still has the first amendment and the property
46 reverts back to the City. One alternative is that as of July 6, the property reverts as authorized by
City Council Regular Meeting Minutes
May 23, 2006
Page 12
1 the existing amendment or at the City's option it could choose to extend the date and exert a
2 penalty.
4 Councilmember Gray restated his motion that the property would revert back to the City or a fine
5 of $1000 per day will be imposed until the restaurant is finished beginning on July 5.
6
7 Mayor Faust restated the language of the motion to include: a 35 day extension, the $100 per day
8 donation to the Sports Booster's charitable gambling activity, and a $1,000 per day penalty until
9 the restaurant is finished beginning July 1 or the property reverts to the City on July 5.
10
11 Substitute motion by Councilmember Gray, seconded by Councilmember Thuesen, to approve
12 the Request from Developer to extend the deadline for the development agreement between the
13 City of St. Anthony and Amcon as clarified by Mayor Faust.
14
15 Ayes — 3, Nays — 2 (Stille, Horst). Motion carried
16
17 E. Resolution 06 -054; Acknowledging Gambling Activity by the Lions Club of Northeast
18 Minneapolis at the Village Pub located at 2714 Highway 88
19
20 City Manager Momson pointed out changes to Resolution 06 -054. The first change is a wording
21 change from "gambling lease" to "gambling license." The second wording change is from
22 "acknowledges" to "approves" gambling license.
23
24 Mr. Steve Peterson, President of the Northeast Lions Club, and a resident of St. Anthony,
25 addressed the Council. He believes, after discussions with the Sports Boosters, that they really
26 do not want to get into the gambling business. He proposed the Lions operate the gambling and
27 share the revenue. The proposal is to split everything over $1,000 with the Sports Boosters to do
28 with as they wish.
29
30 Councilmember Thuesen asked if this is agreeable to the Sports Boosters, Lions and the St.
31 Anthony Chamber of Commerce. Mr. Peterson said in the interest of accounting, the Lions
32 would prefer to give the 50 percent to one organization and they will disburse it as they
33 determine appropriate.
34
35 Councilmember Gray explained that the three organizations will act as a gambling committee
36 and decide as a group of three how the money will be distributed. The money will be donated to
37 charitable contributions.
38
39 Councilmember Horst asked if it was Councilmember Gray's understanding that the Sports
40 Boosters had final approval over charitable contributions. Councilmember Gray stated this was
41 true. Councilmember Horst then asked Mr. Peterson if they have a signed agreement and lease
42 and an application in with the State. Mr. Peterson indicated yes.
43
44 Motion by Councilmember Horst, seconded by Councilmember Gray, to approve Resolution 06-
45 054; Approving a Gambling License by the Lions Club of Northeast Minneapolis at the Village
46 Pub located at 2714 Highway 88.
47
City Council Regular Meeting Minutes
May 23, 2006
Page 13
Motion carried unanimously
3 F. Resolution 06 -055; Approving the Audit for the City of St Anthony for the year end
4 December 31, 2005.
5
6 Dave Mall from HLB Tautges Redpath. Ltd. presented their findings of the City of St. Anthony
7 audit. Peggy Moller from HLB was also in the audience.
9 Mr. Mall reported they are responsible for auditing City records that include: the annual
10 financial report, the State Legal Compliance Report, Report on Internal Controls, and all funds
11 the City maintains. He presented a brief summary to the Council and the audience.
12
13 The Annual Financial Report is an audit report on the fair presentation of the financial
14 statements. The financial statements are the responsibility of management. The results of the
15 City audit found "clean opinion" on the 2005 financial statements.
16
17 The State Legal Compliance Report is required by Minnesota Statutes. The Office of the State
18 Auditors established a task force several years ago to develop an audit guide for legal
19 compliance. The City audit was comprised of seven categories: Contracting and Bidding,
20 deposits and investments, conflicts of interest, public indebtedness, claims and disbursements,
21 other miscellaneous provisions, tax increment financing. The audit resulted in two findings.
22 These findings were payroll declaration and granting acceptance by resolution.
23
24 The Report on Internal Control is based on inquiries and observations. It identifies a reportable
25 condition which is defined as "significant deficiencies in the design or operation of the internal
26 control over financial reporting that would adversely affect the City's ability to record, process,
27 summarize, and report financial data." Six reportable conditions were noted by the auditors.
28 These were: segregation of duties, timely reconciliation of accounts, netting of revenues and
29 expenditures, grant monitoring, capital assets depreciation calculation errors, and unreconciled
30 capital asset system/under identified land values.
31
32 The Management Letter All Funds Summary form was displayed. This form provides a summary
33 of all the funds the City maintains including the funds, revenues and expenditures of the City. A
34 schedule of investments in 2005 totaled $16,400,000. These are diversified funds.
35
36 City investment income for 2005 totaled $402,000. Most of the investment income was
37 allocation to the water filtration and purification fund.
38
39 Outstanding bonds and loans payable for 2005 are $27,570,000. A little over $11,000,000 are
40 general obligation improvement bonds. Payment is mostly from taxes and assessments.
41
42 Summary of the General Fund shows an increase of $13,754 during 2005. The budget of
43 $4,126,000 means actual results were very close to what was budgeted. The allocation of the
44 fund balance at the end of 2005 was $1,187.719 included $39,000 for prepaid items, self
45 insurance, unemployment reserves, and a major portion for working capital. A policy exists for
46 working capital which states 30 percent is maintained in the general fund of the budgeted
47 expenditures from the previous year. The City was very close to its reserve balance.
City Council Regular Meeting Minutes
May 23, 2006
Page 14
2 Mayor Faust stated the City receives their cash from the County on June 15 and December 15.
3 The numbers shown may look like quite a bit, but the City must make it through to the next
4 payment cycle. Mr. Mall informed the Council that the State auditor recommends a minimum 30
5 percent. Once a city achieves 50 percent anything over is termed as "in excess" of what is
6 needed. Mayor Faust stated the City is at the minimum of what the State auditor recommends
7 and perhaps should set a goal of 35 percent to off -set any unforeseen expenditures.
8
9 Mr. Mall next presented the Water and Sewer Enterprise Fund for sewer operations over the past
10 two years. He noted no change to sewer rates in 2005. Again, operating revenue exceeded
11 operational expenditures. The biggest portion of operating expenses is the payment to the
12 Metropolitan Council Environmental Services for processing of sewage
13
14 The analysis of the 2005 activity of liquor operations generated a net income of $269,000 or 5.1
15 percent of sales. Operating expenses increased over a two year period partly due to the opening
16 of two new stores. A comparison of state averages of municipal -owned liquor operations
17 indicates the City is performing favorably.
18
19 The HRA fund balance shows a total fund balance of $3,421,000 at the end of 2005.
20
21 Councilmember Stille asked Mr. Mall if the recommendations within the body of the letter were
22 considered major or minor issues. Specific levels relate to internal controls. Different levels are
23 used by the auditors.
24
25 Mr. Mall stated that none of the items reached the level of a material weakness. The six items
26 were identified in the internal control report were deemed a reportable condition. The others in
27 the report are considered `other matters' and are not as significant or severe. During the audit,
28 informal discussions included procedures to prevent fraud.
29
30 Mayor Faust asked about accounting for uncollected taxes and how it is reported. Mr. Mall
31 answered that they look at that when the audit is conducted. The City cannot recognize
32 uncollected taxes as revenue. When the auditor looks at the government wide financial statement
33 of net assets, the City is given consideration for doubtful accounts. This is measured and deemed
34 not material. Most cities chose to not record an allowance for uncollectible moneys.
35
36 Councilmember Stille commented that the 30 percent cash available was discussed at a budget
37 meeting. The City's balance sheet indicates the City is in good condition. He looks forward to a
38 good relationship going forward with the new accounting Firm. He recognized and thanked
39 Finance Director Roger Larson for his recommendation to change auditors.
40
41 Motion by Councilmember Horst, seconded by Councilmember Thuesen, to approve Resolution
42 06 -055; Approving the Audit for the City of St. Anthony for the year ended December 31, 2005.
43
44 Motion carried unanimously.
45
46 VI. GENERAL POLICY BUSINESS OF THE COUNCIL.
City Council Regular Meeting Minutes
May 23, 2006
Page 15
1 A. Consider Resolution 06 -048, Tax Increment Financing Policy Tabled from May 9 2006
2 Council Meeting.
4 City Manager Momson explained this issue was tabled from the May 9, 2006 Council Meeting.
5 He asked for objectivity when looking at this policy. It was tailored after what was done for the
6 Silver Lake Village redevelopment and other cities are now trying to get copies of our
7 development agreement and tax increment plan as it is very city friendly.
8
9 The long -term benefits to the City include: creates new jobs, quality employment opportunities,
10 the elimination of blight, a strengthened economic base, increased property values and tax
11 revenues, reduced poverty, creates economic stability, upgrades current neighborhoods and areas
12 for the attraction, retention and expansion of business and housing options in the City, and the
13 implementation of projects that are consistent with the City's Comprehensive Plan.
14
15 City Manager Morrison pointed out some of the changes to the policy to the Council. A change
16 was made under the purpose. Look back provisions were also added to the policy on page 111,
17 paragraph 5, additional sentence was added to paragraph 7, and on page 12, under the Tax
18 Increment Project Evaluation Process, items 6 and 7 were added.
19
20 Councilmember Stille asked for clarification of page 112 number 6. The City Manager indicated
21 that the City is given the potential for an out should the need arise to question a developer.
22
23 Councilmember Horst asked how a developer knows what the pay rate should be. City Manager
24 Morrison replied this is information the City passes on. The City is required to fill out forms for
25 the State of Minnesota under the Business Subsidies Statute if it provides assistance for the
26 project.
27
28 Motion by Councilmember Thuesen, seconded by Councilmember Gray, to approve Resolution
29 06 -048, Tax Increment Financing Policy.
30
31 Motion carried unanimously.
32
33 VII. REPORTS FROM CITY MANAGER AND COUNCILMEMBERS.
34
35 City Manager Morrison reported the Fire Chief will be providing the Council and Staff with an
36 opportunity to participate in the National Infinite Management System (NIMS) training. This is a
37 Presidential Order providing training for a comprehensive response to an emergency. All
38 Council members must complete some form of training either on line or go to another city. The
39 City Manager is proposing one of the counties set up a half day or a Saturday for emergency
40 planning.
41
42 City Manager Morrison reminded the Council of the joint meeting with the school board on
43 Tuesday, May 30th at 6:30 in the high school media center.
44
45 The next Comprehensive Plan meeting is June 5th.
46
City Council Regular Meeting Minutes
May 23, 2006
Page 16
1 City Manager Mornson stated he will be asking the City of Roseville to pass a resolution with
2 the City of St. Anthony to talk about the Walkable Sidewalk Project in order to potentially get
3 the $175,000 grant fund to complete this project.
5 City Manager Mornson indicated that at the June 27 meeting, they are tentatively looking at
6 holding a public hearing in front of the Planning Commission. This public hearing will include
7 the Silver Lake Village developer for Phase IIa for a PUD Subdivision process and a possible
8 rezoning process of the properties owned by the developer.
9
10 Councilmember Horst said they had a successful Village Fest meeting. They were able to get
11 enough volunteers to fill all positions. They are always looking for new volunteers.
12 Councilmember Horst agreed chair the Village Fest meetings. Mr. Horst said they are putting
13 together a wonderful event this year and would appreciate support from the community.
14
15 Councilmember Horst had the opportunity to be involved with the Sister City Minnesota Rocks
16 symposium. Stone sculptors come from all over the world. One sculpture will be placed in Solo
17 Park. Councilmember Horst had the opportunity to meet with the Minnesota artists. He also met
18 with one of the major sponsors to discuss where the sculpture will be placed in Solo Park. Mayor
19 Faust and Councilmember Horst will attend the opening ceremonies.
20
21 Councilmember Thuesen - No report
22
23 Councilmember Gray informed the Council that Nick Bennett from St. Anthony was awarded a
24 $4,000 scholarship from the North Suburban Communication Commission and Comcast.
25
26 Councilmember Stille talked about the Walkable Communities Workshop he attended on May
27 10. This was sponsored by Ramsey County and spearheaded by Commissioner Jan Wiesner.
28 Members of the School Board were also in attendance. The walk was led by an individual from
29 the National Center from Biking and Walkers. They looked at how lighting, striping and width
30 of sidewalks could be incorporated into the Comprehensive Plan. The group toured along 33`d to
31 Highcrest and looked at barriers along the way. Channel 11 News featured the workshop.
32
33 Councilmember Stille stated he attended the Family Services Collaborative Meeting on May 11
34 where they continue to discuss ways to keep children active and busy. Mr. Stille asked the
35 Council to see how the Council and community can work towards this goal.
36
37 Councilmember Stille referred to the Collaborative Meeting and mentioned the need for
38 leadership succession and for additional volunteers to be part of the Collaborative. Anyone
39 interested is asked to talk to Shelly Freeman or Councilmember Stille. A longer report is
40 available from Ms. Freeman.
41
42 Mayor Faust reported taking part in the walkabout on May 10 also, noting that many good ideas
43 surfaced as the walkabout progressed. Mayor Faust reported that Hennepin County is doing a
44 healthy community project that fits in with the Walkable Communities project. A meeting will
45 be held to discuss how these projects can work together.
46
City Council Regular Meeting Minutes
May 23, 2006
Page 17
1 On May 18 the Mayor attended the Association of Metropolitan Municipalities annual meeting.
2 Mayor Steve Larson of New Brighten was elected the new president of this organization. Mayor
3 Faust stated he had an opportunity to meet with legislators and brought back a CD about the One
4 State /One Future on transportation initiatives that he will give to City Manager Mornson.
c
6 Mayor Faust attended the opening ceremony of Minnesota Rocks at Kellogg and John Ireland
7 Boulevard. The Mayors of St. Paul and Vadnais Heights were also in attendance. This event is
8 open daily between 12:00 and 8:00 p.m. until June 30. These rock sculptures will then be placed
9 throughout St. Paul, one in Vadnais Heights, and one in St. Anthony's Solo Park. Mayor Faust
10 let everyone know that Councilmember Horst has been the driving force behind this project.
11
12 City Manager Mornson and the Mayor and staff met with Len Pratt at Silver Lake Village to
13 prepare for the Solo Park dedication. The dedication will take place on June 8 from 5:00 p.m. to
14 6:30 p.m. More information will be available on the website and CTV.
15
16 VIII. COMMUNITY FORUM.
17 Mayor Faust invited residents to come forward at this time to address the Council on items that
18 are not on the regular agenda.
19
20 Jeff Reynolds wanted to know if the audit will be available to the public. Mayor Faust answered
21 by stating the audit as well as the budget is available at City Hall.
22
23 IX. INFORMATION AND ANNOUNCEMENTS.
24 None
25
26 M MISCELLANEOUS INFORMATIONAL DOCUMENTS.
27 None
28
29 XI. ADJOURNMENT.
30 Mayor Faust adjourned the meeting at 9:50 p.m.
31
32 Respectfully submitted,
33
34
35 Dianna Wise
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40 City Clerk
41