Loading...
04/14/2003 - 00025178MINUTES OF THE REGULAR MEETING OF THE FRIDLEY CITY COUNCIL OF APRIL 14, 2003 The Regular Meeting of the Fridley City Council was called to order by Mayor Lund at 7:02 p.m. PLEDGE OF ALLEGIANCE: Mayor Lund led the Council and audience in the Pledge of Allegiance to the Flag. ROLL CALL: MEMBERS PRESENT: Mayor Lund, Councilmember Barnette, Councilmember Billings, Councilmember Wolfe and Councilmember Bolkcom. MEMBERS ABSENT: None. OTHERS PRESENT: William W. Burns, City Manager Scott Hickok, Community Development Director Richard Pribyl, Finance Director Jon Haukaas, Public Works Director Dave Sallman, Director of Public Safety Mary M Smith, City Assessor Lynn Krachmer, City Appraiser Alan Kantrud, City Attorney BOARD OF REVIEW MEETING Ms. Smith, City Assessor, introduced Lynn Krachmer, City Appraiser, and Mary Boyle, Anoka County Residential Supervisor. She said the Board of Review was held in accordance with Minnesota Statutes, Section 274.01. The purpose of the Board of Review was to establish an orderly and consistent appeals procedure for property owners who wanted to challenge the 2003 estimated market value or classification of their property. As the Board, the City Council had the ability to change values or classifications in accordance with State law. There were three possible courses of action the Board could take: affirm a current value, reduce the value based on evidence presented, or increase the value based on evidence presented. The second meeting was scheduled for Apri128, 2003, at 7:30 p.m. Ms. Smith said according to Minnesota State Statutes, the responsibilities of the Board of Review were to have a majority of the members in attendance and to see that all taxable property was properly valued and classified. If property was omitted from the tax roll, it could be added by the Board. The Board must only hear cases for the current assessment year. The Board could not give a class of property an increase or decrease; only individual property. The amount of reduction to individual properties could not exceed 1 percent of the city-wide aggregate assessment. If the Board found a case of under-valuation, it could raise the valuation of the FRIDLEY CITY COUNCIL MEETING OF APRIL 14, 2003 PAGE 2 property but must first notify the owner. The Board must complete and adjourn within 20 days from the time it convened. Ms. Smith said the procedures for the Fridley Board of Review were as follows: each property owner who appeared would complete a property appeal form and give to the assessing staff. Each property owner could address the Board in order of registration. Written appeals would be read at the meeting. The Board could direct staff to reappraise any property and report back to the Board at a reconvened meeting. The Board compared the information presented by the assessor to the information presented by the property owner and would make a determination of what was the actual fair market value of each property. Ms. Smith said that as of March 10, there were 331 sales that occurred in Fridley from January 1 to December 31, 2002. Of that number, 253 were for residential single-family homes, 56 for townhomes, 6 for double bungalows, and 16 for condominiums. With those sales came a drop in the City's sales ratio. County-wide increases of 6 percent to the base rate took place in the fall. Along with that increase, land values needed to be adjusted upwards. All properties experienced these increases, with a net increase from 5 to 25 percent in some areas of the City. The value increases ranged from $10,000 to over $30,000. These sales were broken down further by average sale price, average estimated market value, and average ratio as follows: a. Residential: The average sale price was $170,800; average estimated market value, $150,000; with an average ratio of 85 percent. b. Townhomes: The average sale price was $160,200, average; average estimated market value $103,200; with an average ratio of 66 percent. c. Double Bungalows: The average sale price was $215,600; the average estimated market value was $151,500; with an average ratio of 70.1 percent. d. Condominiums: The average sale price was $73,800; average estimated market value was $58,300; with an average ratio of 79.7 percent. Ms. Smith said that to date the Assessing department received ten calls regarding the 2003 estimated market value. One call was from a residential property, three from apartment owners, and six from commercial industrial property owners. They resolved the values of the three apartments and four of the six commercial industrial properties and letters were sent to the property owners stating the changes. It was also noted in the letter that the appeals process remained the same. She said the first case being presented this evening was that of a residential property owner. Upon hearing the case from both the Assessing Department and the homeowner, the Board would be asked to consider the matter. Mr. Krachmer, City Appraiser, stated that the owners in the first case were Michael and Janice Hylden at 5601 Matterhorn Drive N.E. The property was a residential homestead. The 2003 estimated market value of the land was $82,900 and the structure was $161,500, for a total of $244,400. He said the property owner had an appraisal done in October, 2002, for refinancing. The comparables used for the market approach in this appraisal were a townhouse and two properties with tuck-under garages, one of which was located in New Brighton. The resident's FRIDLEY CITY COUNCIL MEETING OF APRIL 14, 2003 PAGE 3 home was a split foyer with a double attached garage. The appraisal determined a market value of $195,000. After making adjustments to the comparables for inferior and superior features, the appraiser arrived at a value of $239,000. He said it was the recommendation of the assessor that the 2003 estimated market value of this homestead be reduced to $239,000. Ms. Smith asked if the property owner was present. There was no response from the audience. Ms. Smith said the Board could confirm the value, increase the value or decrease the value. Councilmember Billings asked if this could be held until the end of the Board of Review session in case the homeowner came later. Ms. Smith stated the owner in Case 2 was Conway Central Express. The address was 51 - glst Avenue N.E. The property type was industrial and there were three buildings on the property: an office that was 9,220 square feet, a service garage that was 10,560 square feet, and a transit warehouse that was 48,900 square feet. She said it was built in 1986 and had a 2003 estimated market value of land at $1,281,000 and structures at $3,012,000, for a total of $4,293,000. A representative of this property, Brad A. Harrington, sent a letter dated April 10, 2003. The letter asked them to review the 2003 estimated market value. According to Mr. Harrington, information pertaining to the property would be forthcoming. She said they would present their findings at the continuation of the Board of Appeals meeting on Apri128, 2003. MOTION by Councilmember Barnette to receive the letter from Mr. Harrington dated April 10, 2003, and continue this matter until Apri128, 2003. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Ms. Smith stated that with respect to Case 3, a telephone call was received late this afternoon from Tom Morris, the owner of Kelly Inn, 5201 Central Avenue N.E. He faxed a letter shortly thereafter. She said she would work on this case and present her findings at the continuation of the Board of Review meeting on Apri128. MOTION by Councilmember Wolfe to receive the letter from Kelly Inn dated April 14, 2003. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION by Councilmember Barnette to continue the Kelly Inn matter to the April 28, 2003, meeting. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF APRIL 14, 2003 PAGE 4 Mr. Jack Lehtinen stated he owned six acres of vacant land behind Sam's Club. He said the City demanded he put a building in. It was a unique property that had soil problems. He said they would need to dig down 45 feet deep at a cost of $600,000. He said the only way this would work was if the City gave him a tax increment deal. He said the land essentially has no value. Mayor Lund asked him how long he owned the property. Mr. Lehtinen stated he has had it for one year. He got it on a foreclosure. Mayor Lund stated the only thing they were able to ascertain at this meeting was whether he was paying fair taxes. He asked Ms. Smith if she knew what the taxes were. Ms. Smith stated she did not have that information. Councilmember Bolkcom asked for the PIN number for the address. Mr. Lehtinen stated he looked for it but did not have it. Ms. Smith asked if he called Anoka County. Mr. Lehtinen said he did. Councilmember Bolkcom asked if he had worked with the City's Community Development Department. Mr. Lehtinen replied he had spoken with them. MOTION by Councilmember Barnette to continue this matter until April 28, 2003. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Dave Morrissette approached and stated he lived in Oakdale, Minnesota. He recently bought two fourplexes. One at 7673 East River Road and one at 106 — 77th Way. He said he closed on April 3 and the assessed value was $324,600. He said he paid $300,000 for 7673 East River Road and $325,000 for the other property. Mayor Lund stated that he was saying the property he paid $300,000 for had an estimated value of $324,600 Mr. Morrissette replied it did. Mayor Lund asked what the value was for the other property. FRIDLEY CITY COUNCIL MEETING OF APRIL 14, 2003 PAGE 5 Mr. Morrissette replied that it was the same. The buildings were identical. He said he was not sure how this worked. He knew the assessed value was supposed to be within 90 percent of sales, but to him it was a fairness issue about whether his property was assessed fairly with other properties. MOTION by Councilmember Barnette to continue 7673 East River Road and 106 — 77th Way until Apri128, 2003. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Councilmember Billings asked whether Mr. Hylden had arrived. There was no response from the audience. MOTION by Councilmember Wolfe to continue 5601 Matterhorn Drive until April 28, 2003. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION by Councilmember Barnette to continue the local Board of Review until April 28, 2003. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. CITY COUNCIL MEETING NEW BUSINESS: L MOTION TO RECONSIDER VARIANCE REQUEST, VAR #03-05, BY BRIAN BONA, TO REDUCE THE SETBACK FROM AN ADJACENT RESIDENTIAL DISTRICT FROM 50 FEET TO 10 FEET TO ALLOW FOR THE CONSTRUCTION OF A CAR WASH, GENERALLY LOCATED AT 5311 UNIVERSITY AVENUE N.E. (WARD 1). MOTION by Councilmember Wolfe to reconsider Variance Request #03-OS by Brian Bona. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION by Councilmember Wolfe to table this request until Apri128, 2003. Seconded by Councilmember Billings. FRIDLEY CITY COUNCIL MEETING OF APRIL 14, 2003 PAGE 6 UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. APPROVAL OF PROPOSED CONSENT AGENDA: APPROVAL OF MINUTES: City Council Meeting of March 24, 2003. Councilmember Bolkcom asked that a correction be made to Page 10, second to last paragraph, which should read "by approving" instead of "by approve." APPROVED. 2. FIRST READING OF AN ORDINANCE AMENDING THE FRIDLEY CITY CODE, CHAPTER 507, BATHING BEACHES. Dr. Burns stated the ordinance currently required lifeguards at bathing beaches. The proposed changes would eliminate the requirement for lifeguards and change all references from "bathing" beaches to "swimming" beaches. He said staff expected to save approximately $18,000 per year by not using lifeguards at Moore Lake beach. Staff recommended Council's approval of the first reading of this ordinance. THIS ITEM WAS MOVED FROM THE CONSENT AGENDA TO THE REGULAR AGENDA. 3. RECEIVE THE MINUTES OF THE PLANNING COMMISSION MEETING OF MARCH 19, 2003. RECEIVED. 4. APPROVAL OF DEVELOPMENT AGREEMENT BETWEEN THE CITY OF FRIDLEY AND MICHAEL JUAIRE FOR THE NORTON MANOR FIRST ADDITION (WARD 2). Dr. Burns, City Manager, stated the agreement identified improvements to be made in conjunction with the Juaire plat on Norton Avenue. There were also provisions for grading, street cleanup, permits, park dedication fee, drainage easements, and several others. It also listed 21 stipulations. Staff recommended Council's approval. APPROVED DEVELOPMENT AGREEMENT BETWEEN THE CITY OF FRIDLEY AND MICHAEL JUAIRE FOR THE NORTON MANOR FIRST ADDITION. FRIDLEY CITY COUNCIL MEETING OF APRIL 14, 2003 PAGE 7 5. RESOLUTION NO. 18-2003 APPROVING A PLAT, PS #03-01, NORTON MANOR FIRST ADDITION, BY MICHAEL JUAIRE, PMJ GROUP, INC., FOR THE PURPOSE OF CONSTRUCTING AN 8-UNIT TOWNHOME DEVELOPMENT, GENERALLY LOCATED AT 1152 AND 1170 NORTON AVENUE N.E. (WARD 2). Dr. Burns, City Manager, stated the preliminary plat for Norton Manor First Addition was approved by the City Council on March 3. Staff recommended Council's approval of the final plat. ADOPTED RESOLUTION NO. 18-2003. 6. VARIANCE REQUEST, VAR #03-07, BY PETE SARGENT, BELAIR EXCAVATING, TO REDUCE THE WIDTH OF A PARKING STALL FROM 10 FEET TO 9 FEET TO ALLOW THE EXPANSION OF A PARKING LOT, GENERALLY LOCATED AT 1350 GARDENA AVENUE N.E. (WARD 2). Dr. Burns, City Manager, stated since this variance applied to the property as a whole, it would also enable Totino-Grace to restripe existing parking at the 9-foot width. The additional parking was being created by Totino-Grace to satisfy neighborhood complaints about student vehicles on local streets. Additional parking would be built this summer. Staff recommended Council's approval with the following stipulations: 1. The petitioner shall obtain all necessary permits prior to construction. 2. The petitioner shall be responsible for maintaining and cleaning any debris or dirt located in the street during the construction process. 3. The petitioner shall follow City Code regulations related to the hours of operation for construction equipment. Those hours are 7:00 a.m. to 9:00 p.m. APPROVED VARIANCE REQUEST, VAR #03-07, BY PETE SARGENT, BELAIR EXCAVATING. 7. APPROVE CHANGE ORDER NO. 2 FOR THE CONSTRUCTION OF THE FRIDLEY MUNICIPAL GARAGE EXPANSION. Dr. Burns, City Manager, stated the change order was in the amount of $2,656.00. The biggest contributors to this change order included the relocation of the electrical service to the building and the addition of fire-treated blocking for mounting electrical and data collection boxes. The change order also reflected a$5,700.00 credit for the elimination of roof screening. Staff recommended Council's approval. APPROVED. FRIDLEY CITY COUNCIL MEETING OF APRIL 14, 2003 PAGE 8 8. CLAIMS. AUTHORIZED PAYMENT OF CLAIM NOS. 110673 THROUGH 111064. 9. LICENSES. APPROVED LICENSES AS SUBMITTED AND AS ON FILE. 10. ESTIMATES. APPROVED THE FOLLOWING ESTIMATES: CM Construction Company, Inc. 12215 Nicollet Avenue South Burnsville, NIN 55337 Municipal Garage Expansion Project No. 343 Estimate No. 4 (February) $243,446.05 CM Construction Company, Inc. 12215 Nicollet Avenue South Burnsville, NIN 55337 Municipal Garage Expansion Project No. 343 Estimate No. 4(March) $104, 854.3 5 No persons in the audience spoke regarding the proposed consent agenda items. APPROVAL OF PROPOSED CONSENT AGENDA: MOTION by Councilmember Bolkcom to approve the consent agenda items, with the removal of Item 2. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. ADOPTION OF AGENDA: Councilmember Billings asked that the order of Item Nos. 12 and 13 be switched. MOTION by Councilmember Bolkcom to adopt the agenda with the order of Item Nos. 12 and 13 being switched and Item No. 2 being added. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF APRIL 14, 2003 PAGE 9 OPEN FORUM, VISITORS: There was no response from the audience under this item of business. PUBLIC HEARING: 11. CONSIDERATION OF THE RENEWAL OF THE INTOXICATING LIQUOR LICENSE FOR MN SEAN CO., DB/A SEAN' S GRILL & PUB, GENERALLY LOCATED AT 8298 UNIVERSITY AVENUE N.E. (WARD 3). MOTION BY Councilmember Bolkcom to open the public hearing. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE PUBLIC HEARING OPENED AT 7:58 P.M. Mr. Pribyl, Finance Director, stated this was a public hearing regarding the liquor license for Sean Co., d/b/a Sean's Grill & Pub, generally located at 8298 University Avenue N.E. He said the renewal application was mailed on January 24 of this year and the requested date of return was February 28. Staff sent out a supplemental letter on February 3 requesting additional accounting reports to support food and liquor sales by this establishment. On March 11 of this year, staff received an incomplete renewal application. They are missing the surety bond, liability insurance policy, and a letter from a CPA regarding the food-to-liquor ratio. Mr. Pribyl said that on March 31 of this year, staff received a surety bond as required and also the liability insurance policy for the ne�t license period. The application, the CPA statement and the additional accounting material to support the food sales were missing. On March 31 staff sent another certified letter to the licensee requesting information. On one of the visits to City Hall by the owner, staff was told that Sean's might not be able to meet the minimum food percentage. There are a number of witnesses who have observed questionable money handling practices on site. These money handling practices have led the City to believe that the information received thus far is suspect as to accuracy. They have not satisfied minimum food sales requirements. They do not have a CPA statement or a detailed income statement by which they can actually verify a percentage. With respect to the application for renewal, it appeared there was a violation of a liquor ordinance regarding the lack of a managerial license. As of April 15, 2003, Sean McAllister had not applied for a managerial license but was acting in that capacity. In an affidavit dated October 24, 2003, owner Sean Tierney repeatedly referred to Sean McAllister as the Acting Manager. Mr. Pribyl said they also have some public safety concerns. On January 22, 2003, this establishment had a server who was charged with selling liquor to a minor. In accordance with both state law and city ordinance, the owner of the establishment was responsible for the conduct of their employees. On several occasions, the owner had been told by the Police Department to report all assaults that occur on their property, and it appeared that on several occasions they intentionally opted not to report some assaults. In spite of the establishment not reporting FRIDLEY CITY COUNCIL MEETING OF APRIL 14, 2003 PAGE 10 assaults, Sean's has had more assaults this licensing period than any other licensed establishment in the City. Mr. Pribyl said that on March 3, 2003, the licensee admitted to using an unvented heater during business hours. The Fire Marshall issued corrective orders on other possible fire code violations that were to be completed by April 11, 2003. Some of those violations are still outstanding. He said staff had two concerns. One was the inability to verify the minimum food requirement. They felt the owner was not maintaining the minimum level of food sales. Public safety was also a concern. Sean's did not provide a safe environment for their customers. Councilmember Bolkcom asked about the handling of money. Mr. Pribyl replied that on a number of occasions police officers and others have witnessed that the cash drawers have been propped open and the cash registers were not powered. He said there was a concern about what actually was being recorded for sales with respect to both food and liquor. Councilmember Bolkcom asked Mr. Sallman about assaults that have occurred at Sean's. Mr. Sallman, Director of Public Safety, stated that no assaults have been reported by the management of Sean's. The assault reports were filed after the fact. This causes a problem for the Police Department because they cannot investigate the crime. He said he told Sean's verbally after one of the assaults in August, that they needed to call when there was an assault that needed an investigation. He received information about another assault that occurred in February and sent a letter to Sean's that specifically told them that if there was an assault, they needed to report it. He said he thought that shortly after he sent the letter there was another assault and they did not get a call. He said that even though they are about one-half the size than the ne�t most active licensed establishment, they had more assaults. Mr. Sallman stated he did not know if there was electricity or not to the cash registers, but the police officer and other citizens observed that cash registers were never used. The police officers did not observe anyone eating food. On several occasions they were told the kitchen was not open. Councilmember Bolkcom stated they received a letter that was not signed that mentioned some of the issues. Mr. Sallman stated they know who wrote the letter, but the person chose to remain anonymous. Councilmember Bolkcom asked the Fire Marshal if he could elaborate on any fire code issues at Sean's. Mr. Messer, Fire Marshal, stated that on Monday, March 3, he received a complaint from Mr. Sallman about an unvented open flame propane heater being used in the basement to provide auxiliary heat to an area inside the west entry door from the parking lot into the building. This FRIDLEY CITY COUNCIL MEETING OF APRIL 14, 2003 PAGE 11 was against the fire code. While investigating the complaint, they found a number of items that were in need of repair. He said a number of items have been repaired since their initial visit. Councilmember Bolkcom asked if they were given a date to make the corrections. Mr. Messer replied they had been given dates. The list has grown smaller, but not all the items have been completed. Councilmember Bolkcom asked if Sean's knew that the repairs needed to be made within a certain time. Mr. Messer said they knew. Dr. Burns, City Manager, asked for a list of the items that have not been corrected. Mr. Messer replied complete replacement of missing or damaged ceiling times, alter or modify the sprinkler system over the dance floor, replace wiring to lights over lower level pool tables with compliant electrical outlets, remove e�tension cords from the sound system and lighting over lower level dance floor, install "pull signs" on the west entry doors, install a lock box, and replace the west entrance door. Councilmember Bolkcom asked who he was working with the most. Mr. Messer replied the person's name was Jeff, and he believed he was the kitchen manager. Councilmember Bolkcom asked if they had sent a letter to the property owner with the needed corrections or if their contact was only through Jeff. Mr. Messer stated he was the person who usually received the notice. Apparently, he was in charge of arranging for most of the repairs and labor for the repair. Councilmember Bolkcom stated so he was not sure if the owner had received a notice. Mr. Messer replied he believed that the owner was aware of the notices. Councilmember Bolkcom asked how he knew. Mr. Messer said it was his understanding that the gentleman was an agent for the owner as a manager. Mr. McAllister, Sean's Pub & Grille, said with respect to the calls, he thought they were talking about five calls. He said Sean's liquor license was due May 1. He said they received a letter February 2 or 3 about renewing the license. They did not have the money in February to make the payments. He said they had hired what they thought was a CPA, but it turned out he was not. Since then they have brought their papers to a CPA. He stated that they only had 28 days to get everything taken care of. FRIDLEY CITY COUNCIL MEETING OF APRIL 14, 2003 PAGE 12 Councilmember Bolkcom asked if the practice was the same for all license renewals. She asked if they were generated in 7anuary, not February. Mr. Pribyl agreed. Councilmember Bolkcom asked Mr. McAllister when he went to the CPA. She said they had not received anything. Mr. McAllister stated he had the letter, balance sheets and income tax statements. MOTION by Councilmember Bolkcom to receive the letter and financial statement for MN Sean Co. from Terrence J. Magill, P.A., dated April 14, 2003. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Councilmember Bolkcom said it basically stated that the food sales were 42.8 percent. She asked if they had cash registers that sales were not being rung up on, how they kept track of how much food and liquor was being sold. Mr. McAllister replied they had a POS system in the beginning but it would go down more often than it actually worked. They put in new cash registers but the bartenders would spill on them or destroy them. They had intentions of purchasing new registers before they started the process of renewing their liquor license. At this time, he said they were putting the money into the drawers. It had only been since the new year. Councilmember Bolkcom said that until the end of last year they were actually ringing up sales. Mr. McAllister replied, roughly, yes. It was outdated equipment and would break down or the whole register would freeze and would not open. Councilmember Bolkcom asked how they kept track. Mr. Tierney replied with food tickets. When someone ordered food, they wrote it on tickets. They kept all the tickets. Mr. McAllister stated that at the end of the night, the server would list the ticket numbers used, the total amounts, etc. Councilmember Bolkcom asked if it had been made clear to them last year when they applied for their liquor license that the City was very strict about the food and liquor requirements. Mr. Tierney replied he totally understood. He said it was hard to run a business in Fridley when it came to the food sales. He said they met their 40 percent. They made some changes at Sean's and people could now see the kitchen. He said they took on the bar from the previous owner FRIDLEY CITY COUNCIL MEETING OF APRIL 14, 2003 PAGE 13 more or less "as is." There were a lot of violations and they started to take care of them as soon as possible. Councilmember Bolkcom asked if they called the Fire Department to do an inspection when they first took over the bar. Mr. McAllister stated they did an inspection on May 3, 2002. They took over the bar on May 1, 2002. Councilmember Bolkcom asked if the original violations had been taken care. Mr. McAllister said they had. Councilmember Bolkcom stated the current violations were from the code. The code was not new. Mr. McAllister replied last year they had five or six violations. None of them were new. He said they felt they had a great working relationship with the Fire Department. He said if not already corrected the violations were close to being corrected. He stated they were down to 4 items as opposed to the origina126 or 27 items. He said none of the items were duplicated from last year. Councilmember Bolkcom asked when they would be completed and corrected. Mr. McAllister replied they should have the door the second or third week in May. Councilmember Bolkcom asked about the ceiling tiles. Mr. McAllister stated it was completed. Councilmember Bolkcom asked about the e�tension cords. Mr. Tierney stated it was completed. Councilmember Bolkcom asked about the sprinkler system. Mr. McAllister replied they would have to hire a pipe fitter. They got an estimate for $600. He said they did not have the money, but expected to have it the second week in May. Councilmember Bolkcom asked about the wiring of the lights. Mr. Tierney replied the wiring had been taken down and the new lights were being hardwired in. Councilmember Bolkcom asked about the lock box. Mr. McAllister said it would take a week to ten days to take care of it. FRIDLEY CITY COUNCIL MEETING OF APRIL 14, 2003 PAGE 14 Councilmember Bolkcom asked Mr. McAllister if he had applied for a manager's license since he was referred to as the manager. Mr. Tierney stated Mr. McAllister stepped down from that position. He said there was a new manager. Mr. McAllister replied he did not intend to be a manager when they started. They had another person who backed out on them. He said he and Mr. Tierney were partners in rental property. He did not have any interest in Sean's at this point. He was involved in another restaurant that he was currently being bought out of. He intended to take that money and invest it into Sean's. Councilmember Bolkcom asked if the new manager had a manager's license and what the person's name was. Mr. Tierney said her name was Bridget Westlund. Councilmember Barnette asked if they had a full-time cook. Mr. Tierney replied they were open from 11 to close and there was a cook there at all times. He said he thought they were off at 10 at night. He said the kitchen was open from 11 to 10 every day, and midnight on the weekend. Mr. McAllister stated they had three meetings with Mr. Sallman in his office. At those meetings Mr. Sallman gave them conflicting information. He said they would ask Mr. Sallman what they were supposed to call the police about and he told them if there was a scuffle and they saw blood, that was an assault. At the ne�t meeting, Mr. Sallman he told them that it was any time they saw an assault. This was confusing to him and the security officers. They asked Mr. Sallman if there were any off-duty police officers they could hire and they were told that the City of Fridley did not do that. Mr. McAllister said two weeks ago on a Saturday night, an incident occurred at Sean's. There was a police car nearby with the lights off and the police officer watched two men get into a fight in the front of the building. He had incident reports as well as pictures of the police officer. He said the minute they started walking towards the police officer to ask for some help, he started the car, turned his lights on and drove off. Councilmember Bolkcom asked if he contacted the Police Department or Director of Public Safety after the incident with the police officer occurred. Mr. McAllister replied they felt that Mr. Sallman did not want to help them at all, so it did not make sense to call. Councilmember Bolkcom asked Mr. Sallman to explain what was needed. Mr. Sallman replied they have spoken on several occasions which is why he wrote the letter, because it was clear they did not understand what he had told them. In his letter he said, "I have FRIDLEY CITY COUNCIL MEETING OF APRIL 14, 2003 PAGE 15 notified you verbally before you are to call the police any time there is a crime where an investigation needs to occur. An assault is a crime which requires an investigation. This letter is to notify you that if further crimes such as assaults, se�ual assaults, damage to property, theft, etc., occur and we, police, become aware at a later date that you had information on the crime and did not contact us immediately, it will reflect on your licensing status." He sent the letter on February 27 and he spoke with them shortly after. On March 15 a felony assault occurred and they did not receive a call. He told them if there was any disorderly conduct or they just had to walk somebody out the door, they did not need to call. But if there was something that needed investigation, they needed to call. He said there were seven assaults at Sean's, and none of them were reported by the establishment. That was more than any other establishment in the City last year. They also received information from several victims that the manager encouraged them not to call the police. Mr. Sallman stated at no time did he tell them that if they did not see any blood, they did not have to call. He told them what was in the letter. This is not the first establishment that has had problems with assaults. He said they do not and have never allowed police officers to work in a liquor licensed establishment. It was an ethical issue. Mr. McAllister stated they had put Sean's up for sale. Councilmember Billings asked about their weekly operation. He said they indicated that the kitchen was open from 11 until 10, seven days a week. Mr. McAllister said it was. Councilmember Billings said that the bar was open from 11 to 1 and it sounded like there was an upstairs and downstairs bar. McAllister said the downstairs bar was only open on weekends. Councilmember Billings asked if the kitchen had been opened the whole time. Mr. McAllister replied that it was. Councilmember Billings asked how long the DJs had been there. Mr. McAllister replied since around the first week in July. Councilmember Billings stated looking at their financial statements and the reports that they filed with the Department of Revenue, it looked like they just figured out that they had to pay the sales taxes they collected. Mr. McAllister replied they had some serious problems in the beginning but have lived up to their obligations. FRIDLEY CITY COUNCIL MEETING OF APRIL 14, 2003 PAGE 16 Councilmember Billings stated that it looked like they did not file the sale tax reports until March, 2003. Mr. McAllister said he was correct. Councilmember Billings said that the income statement for music and entertainment from the period July through December was only $1,550. Mr. McAllister stated it was listed under advertising. Councilmember Billings said $48,000 was listed for payroll expenses. Mr. McAllister replied it was for a 7-month period of time. He said $5.15 per hour was minimum wage. Councilmember Billings asked where the bouncer's wages were reflected. Mr. McAllister said they were paid on a cash basis and received 1099 forms at the end of the year. Councilmember Billings replied that the tax preparer indicated it was a compilation. He said a compilation was just what the word meant, compiling the information that was provided by the establishment. The preparer did not audit the books and did not review the books. He asked who give the tax preparer the numbers. Mr. McAllister said that he did. Councilmember Billings asked where the wages for the bouncers were. Mr. McAllister replied they paid the bouncers cash and at the end of the night they signed a piece of paper. The paper was put together for a 1099. The tax person took care of it. Mr. Tierney said they brought all the information that was requested. Mayor Lund asked Mr. McAllister if he had a business or bar he was trying to sell. Mr. McAllister stated he sold it. Mayor Lund asked if Mr. McAllister had past experience in running a bar. Mr. McAllister said it was in building a bar. In January, 2000, he had the idea to build a bar and found an investor. On November 11, 2001, he began the process of selling it after it had been open two months. Mayor Lund asked if he was paid a salary or any other benefits from Sean's. FRIDLEY CITY COUNCIL MEETING OF APRIL 14, 2003 PAGE 17 Mr. McAllister replied, no sir, not today. Mayor Lund said he had been to their establishment three times. Two of the three times, he could not get food service. Mr. McAllister asked if there was construction going on at that time. It may have been closed because of the construction. Councilmember Bolkcom asked about the VIP room. Mr. McAllister replied the VIP room section was also a conference room. If a 10 to 15 people were going to have dinner and wanted some privacy they could use that room. There was a$300 liquor/food minimum order. MOTION by Councilmember Bolkcom to table this item until April 28, 2003. Seconded by Councilmember Wolfe. Councilmember Billings asked Mr. Pribyl to request the W-3 form that was filed with the Internal Revenue Service, the 1098 form that would have been submitted to the Internal Revenue Service, and an account history relative to the cost of goods sold. He said it appeared that their on-site accounting was very lax, and he would like Mr. Pribyl to take a look at the detail. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. NEW BUSINESS: 13. RESOLUTION NO. 19-2003 RECEIVING FINAL PLANS AND SPECIFI- CATIONS AND ORDERING ADVERTISEMENT FOR BIDS, MARIAN HILLS NEIGHBORHOOD STREET IMPROVEMENT PROJECT NO. ST. 2003-01. Mr. Haukaas, Public Works Director, said the resolution ordered the final plans and advertisement for bids for the 2003 street reconstruction project. At the Council meeting of March 24, there was some discussion about the realignment of 52"d and Taylor. As a result, they held a neighborhood meeting on Apri12. Seven residents attended. Mr. Haukaas said they originally put the plans together without the realignment, but they have now designed the realignment and asked for approval to include it. Mayor Lund stated that he assumed the resolution alluded to the realignment. Councilmember Wolfe asked if the realignment would happen if the resolution was passed. Mr. Haukaas said it did include the realignment of that intersection. Councilmember Wolfe asked why it was being changed. FRIDLEY CITY COUNCIL MEETING OF APRIL 14, 2003 PAGE 18 Mr. Haukaas replied it would be an improvement and would be easier to maintain. He thought people would obey the four-way stop better. He said he did not think it would make a difference with respect to speeding. Ms. Judy Engebretson, 5216 Taylor Street N.E., said change was great when the people directly affected by the change wanted it. The city-driven proposal of realigning 52"d Avenue and providing an S-curve with a four-way stop at the intersection of Taylor provided the right ingredients for speed, running stop signs and for accidents to happen. She said the present design has produced a zero rate of police-reported accidents at this intersection since 1997. She said that under the new intersection design, the odds of an accident happening at 52"d and Taylor could increase because a new fourth element could be added to this intersection and that was the in and out access for the three-building apartment complex on 52"d Avenue. Ms. Engebretson said consideration should also be given to the negative impact on the property of Mr. Leavey. She said the residents who opposed this change did not feel the positives stated by the City outweighed the concerns of the residents. She presented to Council a petition from 18 neighbors who were opposed to the intersection redesign. MOTION by Councilmember Billings to receive the neighborhood petition. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Greg Truckenbrod, 1300 - 52"d Avenue N.E., stated he lived in the middle of the block. He simply wanted to point out that he thought Mr. Haukaas overlooked something in his diagram, and that was there was already a double curve on 52"d on the east end of the apartment complex. Mr. Bill Leavey, 1240 — 52"d Avenue N.E., stated he lived in the cul-de-sac. He said it put him right into the intersection. It would also bring the apartment entrance closer to him. He stated that backing out of his driveway into the intersection would put him into harm's way, and he would not have any on-street parking. Ms. Darlene Sammarco, 1307 — 52"d Avenue N.E., stated one thing overlooked here was children. She said there were several on the block of 52"d Avenue. Ms. Karen Dorff, 1315 — 52"d Avenue N.E. stated she has lived at her home since 1978. She had two children, one was 22, the other 18. She said when they were younger, she was not able to let her children out on the street without supervision. She said people did not stop at the stop sign. They called and asked if a speed bump could be put in and were told it could not because of the angle of the hill and because it would be too hard on the snow plow equipment. She did not think removing the jog and putting in a four-way stop with a blind intersection would do anything for the City. She said she was a bit disturbed that there were no copies of the plans in the public handout and they did not have access to the plans. She thought the intersection was not FRIDLEY CITY COUNCIL MEETING OF APRIL 14, 2003 PAGE 19 an improvement at all. She asked what their plans were for dealing with snow, ice, and water from the hotel parking lot. Mr. Bill Job, 5250 Taylor Street N.E., said he thought the intersection looked like a"T." The driveway from the apartments went into the middle of the intersection, which he thought was dangerous. Councilmember Billings said it squared the intersection so that it would be easy to identify who was first at the intersection. He did not think this would increase the speeds on 52"d Avenue or be a dangerous impediment to children playing further up the street. Three former city engineers supported this particular proposal, and staff waited until work was being done in the area to implement it. Mayor Lund stated in the past if they did not have a consensus of a majority in the neighborhood, they did not do the project. Councilmember Bolkcom said she thought they wanted the street improvement. They just did not like the new alignment. She asked if there were any accident counts. Mr. Haukaas said they went back five years and did not find any reported accidents. Ms. Dorff asked what the benefit of lining up the apartment driveway was. Mr. Haukaas replied the purpose of bringing the driveway to the intersection was to make it understandable to people exiting that it was going to be just like a street. Ms. Engebretson stated she had been a resident of the area for 38 years. She thought the jog was there for a reason. Dr. Burns asked Mr. Haukaas how important the legislation was to getting the project started. Mr. Haukaas replied approval would keep them on track to get the project started after Memorial Day. He said they could delay one more meeting and stay on schedule. Dr. Burns stated it is his understanding they do have it designed both ways. Mr. Haukaas said they did. MOTION by Councilmember Bolkcom to adopt Resolution 19-2003. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF APRIL 14, 2003 PAGE 20 MOTION by Councilmember Barnette to approve the plans for Street Improvement Project No. ST.2003-1 with the exception of the change at 52"d and Taylor Street. Seconded by Councilmember Wolfe. Councilmember Bolkcom said it was her understanding the motion asked that the realignment not take place. Councilmember Barnette agreed. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 12. RESOLUTION DENYING RENEWAL OF INTOXCIATING LIQUOR LICENSE FOR MN SEAN CO., DB/A SEAN' S GRILL & PUB, GENERALLY LOCATED AT 8298 UNIVERSITY AVENUE N.E. (WARD 3). MOTION by Councilmember Bolkcom to table this item until April 28, 2003. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 2. FIRST READING OF AN ORDINANCE AMENDING THE FRIDLEY CITY CODE, CHAPTER 507, BATHING BEACHES. Councilmember Barnette said that under Chapter 507, it stated that the beaches may close for periods of severe weather and/or the presence of lightening. He said if there were no lifeguards, who would tell people that the beach was closed. Councilmember Bolkcom said it would be posted. MOTION by Councilmember Barnette to waive the reading and approve the ordinance on first reading. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 14. INFORMAL STATUS REPORTS Dr. Burns stated they received a proposed amendment to Anoka County's legislation on a community development organization. Councilmember Billings stated the County of Anoka was proposing to create a county-wide Economic Development Authority. The money would be used predominantly for development and for the promotion of Anoka County to developers. They proposed a county-wide tax to raise FRIDLEY CITY COUNCIL MEETING OF APRIL 14, 2003 PAGE 21 the funds to fund the Economic Development Authority. City staff and several members of the Council did not think it was a good idea to implement a county-wide tax. Dr. Burns stated they have voiced the opinion that they should have the ability to opt in or opt out of any kind of taxation for economic development purposes in Anoka County on a county- wide basis. He said they met with representatives of the County to discuss this. Changes were made and they could opt out of 60 percent of the cost of the tax but everyone would be required to pay 40 percent of the tax. Councilmember Billings stated it did not say that a City's limitation would be 40 percent of the amount levied by the County in any particular year. It said the levy within a city with limited participation shall not exceed 40 percent of the maximum levy allowed by law. Councilmember Bolkcom asked if they had spoken with representatives of other cities. Mayor Lund stated a couple of the communities have adopted or enacted resolutions that were not in favor of the proposal by the County Dr. Burns stated he staff's recommendation continued to be that Fridley insist on the ability to opt out of all of the county-wide levy if it so chose. Councilmember Billings stated he thought we should let the County know how we interpreted this. MOTION by Councilmember Barnette to adjourn the meeting. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE APRIL 14, 2003, CITY COUNCIL MEETING ADJOURNED AT 10:17 P.M. Respectfully submitted, Denise M. Letendre Scott Lund Recording Secretary Mayor