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03/13/1972 - 00017590'� �i THE MINUTES OF TI-]E SPECIAL PUBLIC HEARING MEETING OF MARCH 13, 1972 The Special Public Hearing Meeting of the Fridley City Council was convened at 7 40 P.M., March 13, 1972. PLEDGE OF ALLEGIANCL'. Mayor Liebl led the Council and the audience in saying the Pledge of Allegiance to the Flag. INVOCATION: Councilman kelshaw offered the Invocation. ROLL CALL. MEMBERS PRESENT: Breider, Kelsha�, Liebl, Utter, Mittelstadt MEMBERS ABSENT None ADOPTION OF AGEN➢A: Add Item #10 Receiving Contmunication £rom Fudali, Remes $ Fudali Regarding the Skelly Oil Station on 79th iNay and East River Road. MOTION by Councilman Mittelstadt to adopt the Agenda as amended Seconded by Councilman Breider. Upon a voice vote, all ayes, Mayor Liebl declared the motion carried unanimously. PUBLIC H�ARING ON RHZONING REQUEST ZOA #72-02 BY ROBERT L. MCGREGOR, GENERALLY LOCATED SOUT'H OF 69T1-I AVENUC, 1000 FEET WEST OF THE CITY LIMITS: (R-1 TO R-2) Mayor Liebl read the public hearing notice aloud, and announced that the public hearing is opened for any comments. The City Engineer showed the area on the overhead pro7ector, and said the location is �ust west of the Roger Larson townhouse pro�ect. This plan would £it the overall concept the City is aiming at in acquiring park land on Rice Creek. I-le said if the Council grants the rezoning request, he would like to suggest that there be some stipulations, such as the deed for the park property at the south end hy the creek. He said the developer has some rough sketches and a layout, and showed them to the Council and said the Planning Commission recommended approval of the rezoning. CounciLnan Breider asked �ust where the 890 contour line is. The City Engzneer said that the creek meanders through here, but the 890 line is 60' - 8D' north of the creek. The banks are very steep, so the flat area is proposed to be developed with the steep bank maintained as natural terrain. There is no £lat area in that 890 contour line He then showed the Council a contour map of the area. Councilman Utter asked if the road easement spoken of in the Commission Minutes is on the east or west side of this parcel The City Engineer said rt would be on the east side. The City has an easement from the Larson pro- perty, so this road would serve 6oth complexes and the park property to the � � � `� 1� SPLCIAL PUBLIC HEARING A9GETING OF MEIRCII 13, 1972 PAGH 2 � south also. Mayor Liebl asked how many units there would Ue Mr Robert b]cGregor answered 43 um ts, the property is a 13ttle over 6 acres and they have agreed to dedicate the property requested for parks when the property is rezoned. The City Engineer said that in the past an agreement has been drawn up with the developer, the £irst reading is held, then if the developer meets all the stipulations the second reading is held and the ordinance published A9ayor Liebl asked Mr. McGregor what he anticipated his construction costs would be for one unit Mr. McGregor said around $35,000 including the land, or about $32,000 -$33,000 without the land. Mayor Liebl said he could not recall what the price range was for the Larson complex, and asked what it was. The City Engineer said the figures given at the Council meeting were low, but it is still less of an investment than Mr. McGregor is anticipating. Mr. McGregor agreed, and said that they intend to build single family dwellings to sell, the plan to the east o£ them is to rent the units They hope to sell all 43 units, but if they cannot, they have thought of renting with option to buy. This is a flat piece of ground and they plan on excavating two ponds and creating a more aesthetically appealing complex They had planned on draining into the creek, but tnere is a storm sewer to the east already, so they could drain the overflow into the storm sewer. The ponds woulcl be main- tained with the drainage o£ the flat land, and would be their responsibility to maintain. They had thought of putting in a well, or pumping water from Rice Creek and then recirculating it back down The overall idea is to create a little different setting. During the winter the gates would be closed off, � and they plan on putting in a warming house and using the ponds as a skating area for the children In that way it would be functional as well as serving as a holding pond and adding aesthetic �alue Mayor Liebl said this is a little different concept than we have seen in Pridley before. He explained to Mr. McGregor that his plans would have to be presented to the Building Standards - Design Control £or their recommendation before coming to the Council. The proper criteria must be laid out and the agreement would absolve Fridley £rom any responsibility and it would be the owners duty to maintain the area. Mr. McGregor agreed and added that the ponds would have to be engineered so there would Ue no problem, and the gates should be able to be opened up for cleaning He said they would probably be lined with asphalt Mr McGregor explained that under the zoning ordinance they would be allowed 48 units, but there ls not room physically to put that many on the parcel Councilman Breider asked, when a unit is sold, how will the upkeep o£ the pro- perty other than that which goes wrth the deed, be arranged� �9r McGregor said there would be a condominium association for the upkeep o£ all the com- munity property outside the home owners boundarles, and would be maintained by the townhouse association. 1'he City Attorney said he believed the by-laws would be availaUle prior to ordinance approval A7r McGregor said yes, the by-laws must be approved by Council. � Councilman Kelshaw asked if all the surrounding property owners were notified, and if there was anyone who wished to speak on this pro,7ect The City Engineer said they tivere notified. \ li! !� SP�CIAL PUBLIC HEARING MEGTING OP MARCH 13, 1972 PAGE 3 Mr Leslie Tikkanen, 14D0 69th Avenue N.E , said he thought this property was � sold before for apartments. The City Bngineer explained that at one time this property was considered for apartments, the hearing was held and the first reading o£ the ordinance caas given. The proposal was not completed, so the plan is inactive. Mr Tikkanen asked if the setback would be the same as the rest of the houses on the street. The City Engineer said it would be the same as for residential property, at least 35 feet. Mr Floyd F Foslien, 3345 University Avenue S.E., said he had property to the west of this pro�ect. I-le said he is familiar with the work of their archi- tect. What he has seen has been very nicely done, and he would be in favor o£ the pro7ect. MOTION by Councilman Mittelstadt to close the Public Hearing on the rezoning request by Robert McGregor, ZOA #72-02. Seconded by Councilman Kelshaw. Upon a voice vote, all ayes, Mayor Liebl declared the motion carried unanimously and the hearing closed at 8 00 P.M. Mayor Liebl informed the applicant the Council will take action on his request at the Meeting of March 20th, when they will consider the first reading of the ordinance. He added that before the second reading all the plans have to be presented to the subcommittee RECEIVING REPORT ON LIOUOR STORAGE COSTS• The City Manager summarized his report dated March 10, 1972 regarding the re- � modeling o£ the former Police Department area beneath the Fridley Fire Depart- ment offices, which could be used for liquor storage At the present time the storage area is reduced because of the sale of Shorewood. The $2,100 £or re- modeling would allow the City to move from the Shorewood basement and save $150D in rental per year. The cost o£ storage and transportation of liquor stocks at present is about $9,867 per year, including clerk's wages, deliveries and vehicle costs. If the lease is terminated for the storage area in the basement of Shorewood, this would reduce the available area by 750 square feet Nonsales areas in Shorewood Liquor Store are large because it is not a sel£ service store as the other liquor stores are. Returned beer cases account for much o£ the use of the nonsales area and with wine sales becoming a bigger portion of the liquor business, storage space in the stores is critical. The remodeling would utilize an area that is, as o£ now, no use to the City Shipments coming into the City could be received at one place, at one time by the liquor inventory clerk, who is already at City Ha1L Taking inventory of the stock in storage, which occurs £our times a year, can be done at City Hall by the clerk during normal working hours without overtime expense. The utilization of this area for storage would reduce the cost of storage by $1500 per year by eliminating the Shoretvood Uasement storage area. There is a good security system planned for the liquor stock. It is near the entrance to the Police Department, and there would be an alarm system wired into the Police Department. MOTION by Councilman Mittelstadt to receive the report £rom the City Manager dated March 10, 1972 entitled Liquor Storage Costs. Seconded by Councilman � Kelshaw Upon a voice vote, all ayes, Mayor Liebl declared the motion carried unanimously. �� � ��: SPECIAL PUBLIC HEARING ME�TING OF MARCH 13, 1972 PAG� 4 � MOTION by Councilman Mittelstadt to authorize the remodeling of the old City Hall area under the Fire Department offices at a cost not to exceed $21D0, and to terminate the lease for the Shorewood basement storage area upon completion of the conversion. Seconded by Councilman Kelshaw. Counczlman Breider asked what was the imentory value on warehousing in normal tYmes, The Finance Director said the total inventory caould bc about $45,000 - $50,000 in storage, this does not include what is on the shelf Councilman Breider asked if the case discounts are received on what is bought per month on a one time basis or on a multiple delrvery basis The Finance Director said it is on a one time basis. Councilman Breider asked if the same price could be obtained i£ some contract was entered into with multiple deliveries. The Finance llirector said he could not answer that without checkzng with the suppliers At certain times o£ the year the City can make a large purchase and have the deliveries staggered, but this may not be true for every item. Councilman Breider thought it would be a good idea to check into entering lnto some kind o£ a contract whereby the amount of purchases needed for the year would be pro7ected, the City would receive a large discount for buying in bulk, then the deliveries could be made, perhaps 4 times a year The City Manager said that one reason wholesalers offer volume discounts is to cut down on delivery costs Trying to predict future sales based on past sales can be chancy, because o£ the rapidly changing tastes of people. Councilman � Breider said that buying $50,000 of liquor is taking a chance too, and that amount of money is a lot to be lying around gathering dust when it could be invested. He said he would hate to remodel the unused area because of£ice personnel will be increasing and it may be needed. Then the liquor would have to be moved out and the City would have to get another building, and rt would surely Ue more than the cost of the Shorewood Uasement. $2 00 per square foot is a pretty good price Councilman Breider asked tiahy an inventory is taken four times a year The Finance Director replied to get a 100o accurate pro£it and loss figure. The alternative would be a perpetual inventory which, he £elt, would cost the Clty more, and would not be 100% accurate Councilman Breider asked that during the next three weeks the Liquor Store Manager contact the liquor suppliers to see what their reaction would be to a contract for one year, with the right to cancel, and with deliveries maybe four times a year. The City Attorney suggested that the contract need not be absolutely firm, and that there could be an interchange of brands with the same dealer if necessary. Negotiations could proceed tiaith the suppliers with the City agreeing to accept so many cases per month Mayor LieUl agreed the City does not want dead stock, that is money being wasted. Councilman Breider said that this plan, if possible, would move the responsibility of large storage back onto the supplier. Councilman Kelshaw asked if this program could be implemented, is Councilman � Breider still opposed to remodeling? Councilman Breider said he was not necessarily opposed to remodeling, but he would like to have the suppliers Ue responsible for the storage of the merchandise He pointed out that in other industries, there is a large contract for the purchase o£ some rtem, but the deliveries are staggered as needed. The City r9anager said in this business rt is very important to carry enough merchandise to meet the demand �� SPECIAL PUBLIC H�ARING ME�TING OF MARCH 13, 1972 PAGE S There is a turn-over four times a year and it is not gathering dust. If some , product is running low, he wondered if a supplier would make a delivery promptly. Mayor Liebl said that it was very important to run an efficient business now that Fridley is out of the on-sale business. Now, if a product is not moving, it cannot he pushed through the bar. He said there were items pointed out in the survey by �d Phillips and Sons Co., that could be changed for better profit, such as relaying the shelves, realigning of inerchandise and changing the traffic flow The City Manager said that these have been done. Mayor Liebl said that Gouncilman Breider has raised some good points and suggested the Council could sit down in executive session with the Liquor Store Manager to discuss ways of making the operation more profitable. Councilman Utter said that remodeling the basement at City Hall would save $1500 through the termination of the lease for the Shorewood basement, but the rest of the costs would remain the same, or may go up. There is $480 pro7ected for vehicle costs, but it would stand to reason that if the storage is centrally located, the delivery costs would be more, because at least at one location, Shorewood, the liquor would already be there and would not have to be trans- ported again Mayor Liebl asked what was the rental for other nonsales areas? The City Manager said that amounted to $5,665 and is the area in the rear of the other � stores. There has to be some space for the empty beer cases etc. Skywood and Holly have a very limited space in the back. Councilman Breider said there would be a saving of $1500 per year now, true, but what about the £uture years? As the City grows, this may not be so, and Fridley may end up having to rent some space at $4 per square foot, and added that the last proposal he saw was for $4. The Finance Director said that the figure of $9,867 represents the annual costs of liquor storage and transportation, and the only saving there would be through centralization would be the $1500. By centralizing, there would not be a significant amount saved in vehicle, transportation, or preparation o£ shipment costs. We are using Shorewood as the central location now Mayor Liebl asked if Shorewood wants the storage area £or their use The City Manager said they are not forcing the City out, but have agreed to terminate the lease, if so desired, without penalty. Mayor Liebl asked the Finance Director his recommendation The Finance Director said that the question boils down to whether it would be better to keep the Shorewood basement at $1500 a year, or spend $2100 for the renovation of the basement at City Hall. I£ the renovation is done, Fridley would have their money back in two years. He said he would agree wrth the suggestion made by Councilman Breider, and that more work should be done in that area He added there was some work scheduled to be done anyhow with the addition of a sprinkler system. He said it would be more economical, even if � only for two years, to spend the $2100. Councilman Kelshaw asked if there has ever been any trouble with vandalism or burglary. The Finance Director said there have been some attempts, but the City has never lost money or stock items. ��� � `�' .� SPECIAL PUBLIC HEARING NJEETING OF MARCH 13, 1972 PAGH 6 THE VOTE UPON TH� MOTION, being a voice vote, Kelshaw, LieU1 and Mittelstadt voting aye, Breider and Utter voting nay, Mayor Liebl declared the motion carried Mayor Liebl said tliat when �50,000 is spent, we must be very careful to have the proper merchandise to meet the market Fridley has to Ue more frugal since we no longer have the on-sale operation The City must not end up with too much dead stock. Councilman I3reider requested the Administration to prepare a plan which would show where the office personnel wlll be situated in the next five years. Ile said he would like to see where we are heading and he certainly would not want to have to put an addition onto City Hall because some vacant space was used for liquor storage, The City Manager said he assumed that he should wait until there can be some meetings between the Liquor Store Manager, the suppliers and himself before he goes ahead taith the remodeling. There is not a time limit on the remodeling, so it can be started after the investigation is completed on the proposal Councilman Breider has suggested Councilman D9ittelstadt said that the Council turned down the proposal to have a private firm come in and do a study, but he did not want to get the feeling from the Administration that they are stopping work on it, and he did not want the Council to get into the liquor store management business. Thc City has hired personnel to do that and they had better do it and do it effectively. APPOINTMENT - ADMINISTRATIV& �SSISTANT Name Peter Herlofsky 3418 N.E. IIlysses Ave Minneapolis, Minn. 55418 Position Salary �ffective Date Replaces Administrative $975 April 1, 1972 New Assistant per month Mayor Lieb1 read the memorandum from the Crty Manager dated D9arch 10, 1972 aloud, in which he recommends the appointment o£ Peter Herlofsky as Adminis- trative Assistant, He added that there is a resume on Pages 3A and 3B o£ the Council Agenda. MOTION by Councilman k:elshaw to concur with the recommendation o£ the City Manager and appoint Mr. Peter Herlofsky as Administrative Assistant Seconded by Councilman Mittelstadt. Councilman Mittelstadt said he wanted to make clear this is an Administrative staff position whose function is to answer to the City Manager and there are no supervisory duties. This is not the Assistant City Manager/Public Sa£ety Director the City Manager is currently interviewing for � THE VOTE UPON THE MOTION, being a voice vote, all ayes, Mayor Liebl declared the motion carried unanimously The City Manager introduced Mr Herlofsky to the Council, and said it was with pleasure he welcomed him onto his staff, although he was sure the City Engineer was sorry to lose him. � i? SPEGIAL PIIBLIC I-IHARING MEETING OF MARCH 13, 1972 LIST OF CERTAIN TAX FORFEIT LOTS THE CITY FORFEIT SALE: BE WITHHELD FROM TAX PAGE 7 The City Engineer presented a map caith each tax for£eit lot marked that is covered in the Agenda in the memo dated March 10, 1972, and went through the list and pointed out whcre each parcel is located Mayor Liebl asked the Council if they had any ob�ections to the additions to the list and the Council replied no. The City Engineer said that the original list is quite long, so if the Council approves red tagging these lots, they will be added, and the resolution Urought back for the Council to adopt MOTION by Councilman Kelshaw to instruct the City Attorney and the City Engineer to draw up the resolution for wzthholding tax forfeit lots for the Council to adopt Seconded by Councilman Mittelstadt Upon a voice vote, all ayes, Mayor Liebl declared the motion carried unanimously. CONSIDER4TION OF APPROVAL OF CHANGE ORD�R �r2 FOR WATER, SANITARY SEWER AND STORM SE11rCR PROJECT #102 The City Engineer said, as the Council will recall, there was some difficulty in getting easements, and because the bid price was lower than the estzmate, the proposal was before the Council to put in a piped system from Main Street to the railroad tracks and £rom 79th to 78th along the tracks. There was a property owner heard that was in £avor of the improvement and he believed there was another property owner that tivas also in favor. He said he noticed Mr. Richard Harris, who is a property owner, in the audience. Ntayor Liebl asked Mr, Dick Harris i£ he was in favor of the improvement, and added that the other property owners seem to feel it is more practical than the ditch. Mr Harris said he felt it would save money in the long run MOTION hy Councilman Kelshaw to approve Change Order #2 for Water, Sanitary Sewer and Storm Sewer Pro�ect +�102. Seconded by Councilman Mittelstadt. Upon a voiee vote, all ayes, Mayor Lzebl declared the motion carried unanimously. FIRST READING OF AN ORDINANCE AMENDING CHAPTER 23 OF THE FRIDLEY CITY CODE REGULATING THE LICENSING AND b9ANNER OF CONDUCTING DANCES: The City Manager said this amendment defines what a public dance is, which the original ordinance failed to do. The other change is changing the word "peace officer" to "public of£icer" and descrihes what that term means. The effect would be that establishments could then use someone other than sworn police officers for their dances as required in the dance ordinance. NIOTION by Councilman Breider to adopt the ordinance on first reading and waive the reading Seconded by Councilman Kelshaw. lJpon a roll call vote, Mittelstadt, Breider, Kclshaw, Liebl and Utter voting aye, Alayor Lxehl declared the motion carried unanimously. � z� � � � � SPECIAL PUBLIC HLARING AIEETING OF MARCH 13, 1972 PAGL 8 FIRST READING OF AN ORDINANCE AMENDING CHAPTL'-R 83 OF T1IL FRIDLEY CITY CODE RELATING TO THE LICENSING OF TAVERNS MOTION by Councilman Mittelstadt to adopt the Ordinance on first reading and waive the reading Seconded by Councilman Kelshaw. Upon a roll call vote, Utter, Mittelstadt, Breider, Kelshaw and LieUl voting aye, Alayor Licbl declared the motion carried unanimously, REC�IVE COMNNNICATION FROM SPRING LAKE PARh REGARDING CONSTRUCTION OF 5{VINIMING BEACH: MOTION by Councilman Mittelstadt to recerve the communication from the Village of Spring Lake Park dated March 9, 1972 Seconded Uy Councilman Kelsliaw. Upon a voice vote, a11 ayes, D7ayor Liebl declared thc motion carried wianimously MOTION by Councilman Breider to instruct the Administration to contact Spring Lake Park concerning the beach construction and work out the details of the parking situation. Seconded by Councilman Mittelstadt Upon a voice vote, all ayes, Mayor Liebl declared the motion carried unanimously. REQUEST FOR PUBLIC 1IEARING BEFOR� CITY COUNCIL ON REZONING REQllEST ZOA #f72-01, AL NITSCHKE bfOTION by Councilman Breider to receive the commwiication £rom Mr. A1 Nitschke dated March 8, 1972. Seconded by Councilman Mittelstadt Upon a voice vote, all ayes, Mayor Liebl declared the motion carried unanimously. D70TION by Councilman Mittelstadt to set the Public Hearing date for the rezoning request ZOA #72-01 for April 10, 1972 Seconded by Councilman kelshaw Upon a voice vote, all ayes, Mayor Liebl declared the motion carried unanimously R�CEIVIiQG COMMUNICATION PROM FUDALI, REMES AND PUDALI REGARDING THE ShHLLY OIL STATION ON 79TH 4VAY AND EAST RIVER ROAD: MOTION by Councilman Kelshaw to receive the communicatlon from Richard Fudali, Five Sands Development, dated March 13, 1972. Seconded Uy Councilman Breider The Crty Attorney reported that some action he had taken preciprtated this letter. He said the City Hngineer and himself had spent a full day plus part of another day in Dastrict Court on the matter of Pal}:enstein vs Crty of Fridley This is the case where the land owner brought action against the City because of denial of a special use permit for a Skelly Oil Station He said he suggested this be brought back before the Council to see if the Council wishes to recon- sider the situation. This is brought back up for two reasons, one, hopefully, the matter might be resolved without resorting to further litigation, and tw�, because he wanted to advise the Council that there have been 2- 3 Supreme Court cases, i e., Crystal, Saint Paul and Bloomington, wliich have been similar, where the Council has been overturned by the Court. The applicant has indicated he would be willing to meet all reasonable demands the City would wish to place on their building, in terms of lighting, type of material to be used, screening etc. He felt that prior to trying the case, it should be brought back to see what was the pleasure o£ the Council. �r ^' _a �� � �� SP�CIAL PUBLIC HEARING h1EETING OF MARCH 1s`, 1972 PAGE 9 Mayor LieUl asked how much land there was involved and Mr. Warren Caldwell ' (co-owner of the land) replied about one acre. Mayor Liebl said he could not see why this could not be resolved between the land owner and Five Sands. It would seem this could be settled without going to Court As he recalled, Councilmen Breider and Kelshaw were on the Council tahen the hearing was held. The Planning Commission recommended denial and the Council concurred with a 4- 1 vote. Former Mayor Kirkham £elt that a land owner has a right to develop hzs property He said before this goes into Court, he would like to have everyone involved sit down and maybe something could be worked out. In this situation you have the Crty of Fridlep being sued for denial o£ a special use permit, but if it was granted, Five Sands Development would sue the City. He said he had received ob,7ections both from north of 79th and also £rom the area �ust west of East River Road. The City Attorney agreed with the comments of Mayor Liebl and said he would try to get together with Five Sands Development and the property owners and try to resolve their dzf£erences. I-Ie suggested that the Council might be interested in his submitting a summary of the recent Supreme Court actions. Mayor Liebl requested that this item be back on the Gouncil Agenda April 3, 1972 for a report from the City Attorney. The City Attorney agreed and said that he will have a report on the progress between the two parties involved, and if they have not managed to settle it, he will summarize the recent Supreme Court cases. TIIH VOTE UPON THE MOTION, being a voice vote, all voting aye, Mayor Liebl � declared the motion carricd unanimously A➢JOURNM&NT MOTION by Councilman Mrttelstadt to ad�ourn the Meeting. Seconded by Councilman kelshaw. Upon a voice vote, all ayes, Mayor Kirkham declared the motion carried unanimously and the Special Public Hearing Meeting o£ March 13, 1972 ad�ourned at 9 07 P M ue�%�Re ctfully submitted, � �� �,�'���..� r�.w.� �. ,..,sr. ercer Frank G. Liebl Secretary to the Crty Council Mayor �