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04/28/2003 - 00025199MINUTES OF THE REGULAR MEETING OF THE FRIDLEY CITY COUNCIL OF APRIL 28, 2003 The Regular Meeting of the Fridley City Council was called to order by Mayor Lund at 7:32 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 Dave Sallman, Director of Public Safety Jon Haukaas, Public Works Director Mary Smith, City Assessor Fritz Knaak, City Attorney PROCLAMATION: Veterans' Buddy Poppy Day — May 9, 2003. Mayor Lund issued a proclamation for Veterans' Buddy Poppy Day which would be held on May 9, 2003. CONTINUATION OF BOARD OF REVIEW MEETING MOTION by Councilmember Barnette to re-open the Board of Review meeting. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE BOARD OF REVIEW MEETING RE-OPENED AT 7:35 P.M. Ms. Smith, City Assessor, said this was a continuation of the Board of Review meeting held on April 14, 2003. At this meeting all cases that were presented at the first meeting will be reviewed. It was the responsibility of the Board based on evidence presented to affirm the current value, reduce the value or increase the value. Case No. 1: Michael Hylden, 5601 Matterhorn Drive N.E. Ms. Smith asked if Mr. Hylden was present. There was no response from the audience. FRIDLEY CITY COUNCIL MEETING OF APRIL 28, 2003 PAGE 2 Councilmember Billings asked if Ms. Smith had a recommendation for this case. Ms. Smith said that although Mr. Hylden did not come to the first or second meeting, they requested that the City re-affirm the value of the property. Councilmember Billings asked if they received a letter that could be received into the record. Ms. Smith said they only received a telephone call. MOTION by Councilmember Billings to re-affirm the valuation placed on the property located at 5601 Matterhorn Drive N.E. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Case No. 2: Con-Way Central Express, 51 — 81St Avenue N.E. Ms. Smith stated this property was industrial and consisted of three buildings that were built in 1986. The property had a total square footage of 68,680 with land size at 732,000 square feet. The 2003 estimated market value was listed at $4,293,000. The property was viewed and information was provided to her by the company representative, Mr. Brett Harrington. Ms. Smith stated the value was negotiated to $54.11 per square foot, or $3,716,300, based on the value of other transit properties located in Blaine. She recommended that the 2003 estimated market value for this property be reduced to $3,716,300. Mayor Lund asked if there was anyone from the company in the audience. There was no response from the audience. Councilmember Billings asked if they had received a letter from the company. Ms. Smith said they had. Councilmember Billings asked if it was entered into the record at the previous Board of Review meeting. Ms. Smith said it had. MOTION by Councilmember Billings to concur with the City Assessor's recommendation to reduce the value on the property located at 51 — 81st Avenue N.E. to $3,716,300. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF APRIL 28, 2003 PAGE 3 Case No. 3: Kelly Inn, 5201 Central Avenue N.E. Ms. Smith stated this property was a motel that consisted of 56,414 square feet and was built in 1986. The 2003 estimated market value was $3,050,900. A letter was presented at the first meeting from Tom Morris, owner of the Kelly Inn. The letter stated that financial information would be forthcoming. At 3:00 p.m. this afternoon she received a telephone call from a representative of Mr. Morris who faxed the income and expense information. She recommended that the current value be re-affirmed. Mayor Lund asked if there was anyone in the audience from Kelly Inn. There was no response from the audience. MOTION by Councilmember Billings to re-affirm the valuation of $3,050,900 placed on the property located at 5601 Central Avenue N.E. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Case No. 4: Jack Lehtinen, vacant parcel located north of 81st Avenue on Main Street N.E. Ms. Smith stated this vacant parcel consisted of 273,100 square feet and was zoned M-3, Outdoor Intensive Heavy Industrial. The 2003 estimated market value was $232,100. The property owner appeared at the first meeting and stated that the cost of soil correction to this property would be around $600,000 and 45 feet of peat would need to be excavated. In discussing this with the Community Development Department, it was confirmed that if anything were to be built on this property, it would require soil correction first. Based on this information, staff recommended that the 2003 estimated market value be reduced to $180,200. Mayor Lund asked if Jack Lehtinen was present in the audience. There was no response from the audience. MOTION by Councilmember Bolkcom to reduce the 2003 estimated market value on the property located north of 81st Avenue on Main Street to $180,200. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Case No. 5: David Morisette, 7673 East River Road N.E. and 106 — 77t'' Way N.E. Ms. Smith stated the buildings are identical four-plexes and were purchased on March 3, 2003. The 2003 estimated market value of each building was $324,600. She outlined the process of determining the value. She stated it was staff's recommendation based on the information FRIDLEY CITY COUNCIL MEETING OF APRIL 28, 2003 PAGE 4 presented, that the 2003 estimated market value for 7673 East River Road N.E. be re-affirmed at $324,600 and the value for 106 — 77th Way N.E. be re-affirmed at $324,600. Mr. David Morisette, 7601 — 22"d Street Ct. North, Oakdale, Minnesota, said he was the property owner. He said the sale was advertised by an experienced realtor in the investment property business and was heavily advertised for 60 to 120 days. He said the projected income was not correct. He said he came up with an estimated market value of $531,482. He said he had heard of sales anywhere from $50,000 to $88,000 per unit. He said he was familiar with a couple of properties that sold that were used in the comparison, and he also looked them up to see what their estimated market value would be. After speaking with other assessors, he thought he should be assessed 90 percent of the value. He had copies of letters he sent to Ms. Smith and information from the realtor. MOTION by Councilmember Bolkcom to receive a letter sent to Ms. Smith from Mr. Morisette dated Apri120, 2003. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Councilmember Bolkcom asked Ms. Smith if she had any comments about the letter. Ms. Smith asked about the appraisal. Mr. Morisette replied an appraisal was done on one of the properties because it was required for conventional financing. The appraisal did come in slightly higher. He said he did not want the appraisal shown because much of the information was not correct. He said if you look at last year's estimated market value, they are totally different. MOTION by Councilmember Bolkcom to receive a two-page fax from Rose Real Estate Company dated September 9, 2002. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION by Councilmember Bolkcom to re-affirm 7673 East River Road N.E. at $324,600. Seconded by Councilmember Billings. UPON A VOICE VOTE, MAYOR LUND, COUNCILMEMBER BARNETTE, COUNCILMEMBER BILLINGS, AND COUNCILMEMBER BOLKCOM VOTING AYE; COUNCILMEMBER WOLFE VOTING NAY, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY ON A 4 TO 1 VOTE. MOTION by Councilmember Bolkcom to re-affirm 106 — 77th Way N.E. at $324,600. Seconded by Councilmember Barnette. FRIDLEY CITY COUNCIL MEETING OF APRIL 28, 2003 PAGE 5 UPON A VOICE VOTE, MAYOR LUND, COUNCILMEMBER BARNETTE, COUNCILMEMBER BILLINGS, AND COUNCILMEMBER BOLKCOM VOTING AYE; COUNCILMEMBER WOLFE VOTING NAY, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY ON A 4 TO 1 VOTE. MOTION by Councilmember Billings to close the Board of Review meeting. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE BOARD OF REVIEW MEETING CLOSED AT 8:13 P.M. CITY COUNCIL MEETING OLD 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) (TABLED APRIL 14, 2003). MOTION by Councilmember Wolfe to remove this item from the table. Seconded by Councilmember Billings. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Councilmember Wolfe stated he wanted the item reconsidered because after looking at the property he thought Mr. Bona had made many improvements to the area. He thought the car wash was less intrusive to the neighborhood. Mayor Lund stated he thought it should also be reconsidered. He said he thought Mr. Bona had been a very considerate neighbor and the car wash would be an improvement to the area. Councilmember Bolkcom said Mr. Bona knew what the property was like when he bought it. She asked Attorney Knaak if they could vote on the request purely because Mr. Bona was a good business owner and kept the property up. Attorney Knaak, City Attorney, said they needed to consider whether there were any items that were unique to the property. They could be structural or economic, but they had to be matters that related to the property itself that would require a variance in order to utilize the property in an appropriate matter. Individual considerations would not be relevant. Councilmember Wolfe stated in looking at the plans, it would be more difficult to put a car wash in any other direction because it would e�tend past the building. It would change the aesthetics of the building and make it look worse. FRIDLEY CITY COUNCIL MEETING OF APRIL 28, 2003 PAGE 6 Councilmember Bolkcom asked if the car wash could be put in a different place. Mr. Hickok, Community Development Director, said there might be other options. Mayor Lund asked if there was anyone in the audience who wished to address Council on this issue. There was no response from the audience. Mayor Lund asked Mr. Hickok if notice of the meeting had been sent out to the affected property owners. Mr. Hickok said a letter was sent on April 16. They did not receive any response. MOTION by Councilmember Wolfe to approve Variance Request, VAR #03-05, by Brian Bona with the following nine stipulations: 1. The petitioner shall obtain all necessary permits prior to construction. 2. The proposed car wash shall be architecturally compatible with the existing building and finished with complementary building materials; staff to review and approve final elevations. 3. No outdoor storage shall be permitted on site. All existing outdoor storage, including the storage pod, shall be removed upon completion of the proposed car wash. 4. Site shall not be used to display cars for sale or storage of trucks for rent. 5. Proposed car wash shall comply with the City noise ordinance requirements. 6. A speed bump or something similar shall be installed on the heated exit pad of the car wash to aid in removing water from vehicle frames, etc., prior to vehicles entering 53ra Avenue. Final design and location shall be reviewed and approved by City staff. 7. All lighting shall be shielded, downcast, and may not exceed 3-foot candles of light intensity at the property line. 8. Car wash hours of operation shall be restricted to 7 a.m. to 9:00 p.m. 9. Existing gap in the fence shall be filled in, in order to reduce the shine of headlights on neighboring residential properties. Seconded by Councilmember Billings. UPON A VOICE VOTE, MAYOR LUND, COUNCILMEMBER BARNETTE, COUNCILMEMBER BILLINGS, AND COUNCILMEMBER WOLFE VOTING AYE; FRIDLEY CITY COUNCIL MEETING OF APRIL 28, 2003 PAGE 7 COUNCILMEMBER BOLKCOM VOTING NAY, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY ON A 4-1 VOTE. APPROVAL OF PROPOSED CONSENT AGENDA: OLD BUSINESS: 2. ORDINANCE NO. 1176 AMENDING CHAPTER 507, MUNICIPAL BATHING BEACHES. Dr. Burns, City Manager, said the ordinance amended Chapter 507 of the City Code by striking out references to lifeguards at beaches. It also substituted the word "swimming" for "bathing." Staff recommended approval of the ordinance. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 3. FIRST READING OF AN ORDINANCE AMENDING FRIDLEY CITY CODE, CHAPTER 901, PENALTIES. Dr. Burns, City Manager, stated staff raised the penalty for code enforcement and other land use violations and any other violations of the City Code from a maximum of $700 to a maximum of $1,000. These changes were made to Chapter 901 of Fridley City Code and were consistent with Chapter 609.034 of the Minnesota State Statutes. Staff recommended Council's approval. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 4. RECEIVE THE MINUTES OF THE PLANNING COMMISSION MEETING OF APRIL 16, 2003. RECEIVED. 5. SPECIAL USE PERMIT REQUEST, SP #03-06, BY HUMBERTO MARTINEZ SUAREZ, TO ALLOW LIMITED OUTDOOR STORAGE WITH PROPER SCREENING, GENERALLY LOCATED AT 7786 BEECH STREET N.E. (WARD 3). Dr. Burns, City Manager, said the petitioner requested this special use permit to allow a 29-foot by 8-foot storage container. Since the container was well within the size limits of the City Code, staff and the Planning Commission recommended approval with two stipulations. APPROVED SPECIAL USE PERMIT REQUEST, SP #03-06, BY HUMBERTO MARTINEZ SUAREZ, WITH TWO STIPULATIONS: 1. THE PETITIONER FRIDLEY CITY COUNCIL MEETING OF APRIL 28, 2003 PAGE 8 SHALL BE RESPONSIBLE FOR STRIPING HIS PARKING LOT IN ORDER TO COMPLY WITH CODE REQUIREMENTS BY DECEMBER 31, 2003; AND 2. OUTDOOR STORAGE ON THIS SITE SHALL NOT EXCEED 3,000 SQUARE FEET. 6. APPROVE CHANGE ORDER NO. 1 TO THE HARTMAN CIRCLE WATERMAIN LOOPING PROJECT NO. 347. Dr. Burns, City Manager, stated the change order in the amount of $21,810.50 was the final change order for this project. The change order was for additional asphalt, additional traffic control, irrigation system repair, replacement of a gate valve, and additional watermain fittings. Staff recommended Council's approval. Councilmember Bolkcom asked if there were funds left over in the street construction account. Mr. Haukaas said in 2002, $355,000 was budgeted in the capital improvement water budget. Including this change order they would be about $89,000 under budget. APPROVED CHANGE ORDER NO. 1 TO THE HARTMAN CIRCLE WATERMAIN LOOPING PROJECT NO. 347. 7. RESOLUTION 20-2003 IN SUPPORT OF AN APPLICATION FOR MINNESOTA LAWFUL GAMBLING PREMISE PERMIT FOR SPRING LAKE PARK LIONS CLUB (SANDEE'S RESTAURANT, 6490 CENTRAL AVENUE N.E.) (WARD 2). Dr. Burns, City Manager, stated this resolution was for a pull-tab operation at Sandee's Restaurant. It was a renewal that would that would e�tend from August 1, 2003, to July 31, 2005. Staff recommended Council's approval. APPROVED RESOLUTION NO. 20-2003. 8. CLAIMS. AUTHORIZED PAYMENT OF CLAIM NOS. 111067 THROUGH 111241. 9. LICENSES. APPROVED LICENSES AS SUBMITTED AND AS ON FILE. FRIDLEY CITY COUNCIL MEETING OF APRIL 28, 2003 PAGE 9 10. ESTIMATES. APPROVED THE FOLLOWING ESTIMATE: Forest Lake Contracting Inc. 14777 Lake Drive Forest Lake, MN 55025-961 Hartman Circle Watermain Looping Project No. 347 Estimate No. 5 .................................................................... $5,162.49 No persons in the audience spoke regarding the proposed consent agenda items. APPROVAL OF PROPOSED CONSENT AGENDA: MOTION by Councilmember Barnette to approve the proposed consent agenda with the removal of Item Nos. 2, 3, 6 and 9. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. ADOPTION OF AGENDA: MOTION by Councilmember Bolkcom to adopt the agenda with the addition of Item Nos. 2, 3, 6 and 9. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. OPEN FORUM, VISITORS: Ms. Xiao Wang, 1925 East River Parkway, Minneapolis, approached and stated she was a student at the University of Minnesota, Twin Cities campus. They recently requested that Council issue a proclamation for Falun Gong. Their request was rejected. She said Falun Gong was also called Falun Dafa. It taught people the value of truthfulness, compassion, and tolerance. It was not a religion. Mayor Lund stated if they sent him some information and the name of a contact person, he would look into it. Ms. Darlene Sammarco, 1307 — 52"d Avenue N.E., approached and stated she gave some information to Mayor Lund about her daughter and asked if anything could be done. Mayor Lund said he was reviewing the information and would let her know. FRIDLEY CITY COUNCIL MEETING OF APRIL 28, 2003 PAGE 10 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) (TABLED APRIL 14 2003 . MOTION by Councilmember Bolkcom to remove this item from the table. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Richard Pribyl, Finance Director, stated they received all the information that had been requested except for detailed W-2's, but that was fairly insignificant in what they needed to review the books. Staff did have an opportunity to review the financial statements and found them to be sufficiently flawed. They could not tell if the 40 percent minimum food percentage had been achieved. Accordingly, staff continued to recommend that the license not be renewed. A false representation was made by the licensee regarding the officers of the corporation. Mr. McAllister was actually listed as an officer on the workers' compensation application that they received and it appeared as though he was operating as the true manager of the corporation. The financial data did seem to be flawed, and staff could not verify or have confidence that the 40 percent minimum food requirement had been achieved as required by the City ordinance. He said it had been reported by staff and a few customers that there appeared to be very little food sales available in the evening. They verified that on selective evenings. Staff was also concerned about the public safety issues due to the fact that they had a history of unreported assaults at the restaurant. Staff continued to recommend a resolution not to renew the liquor license for this establishment for the ne�t licensing period. Councilmember Bolkcom asked Mr. Pribyl what he meant by flawed. Mr. Pribyl replied one of the concerns they had was the co-mingling of cash and the recording of sales. What they found in reviewing the financial statements was the deposits actually equaled the total sales, and the total sales actually represented 50 percent food, 25 percent beer, and 25 percent liquor. He said they could not verify that the cash-outs were actually recorded. Pull-tab sales were actually co-mingled with food, liquor, and beer and then entered as a journal entry. One day's actual sales included food income of $2,000, beer income of $1,000, and liquor income of $1,000. Cover charges were actually co-mingled with all three revenue sources and a journal entry was made once per month. They took revenue out of the three revenue sources and posted it to one revenue source. Councilmember Bolkcom asked if there were any applications for manager's licenses. Mr. Pribyl said they currently had an unsigned application. FRIDLEY CITY COUNCIL MEETING OF APRIL 28, 2003 PAGE 11 Councilmember Billings asked if they presented him with a listing of the employees they paid cash to. Mr. Pribyl said they did supply that information. Councilmember Billings asked if that included DJ's and security personnel. Mr. Pribyl replied it did. Councilmember Billings asked if there was anything for the "93X girls." Mr. Pribyl replied he did not see any disbursement of cash for them. Councilmember Billings asked if there were any names in the list of DJ's or security that might be construed to be the "93X girls." Mr. Pribyl said he could not tell. Councilmember Billings asked if the deposits into the bank were essentially equal to the revenues that were being posted daily. Mr. Pribyl replied, in every case. Councilmember Billings asked if there appeared to be any adjustments made for the cash pay- outs in the financial statements. Mr. Pribyl said he could not see any. Councilmember Billings said that each and every day he looked at, sales were exactly 50 percent food, exactly 25 percent liquor sales, and exactly 25 percent beer sales. Mr. Pribyl replied that Mr. McAllister posted his daily sales through an invoice. Mr. Sean Tierney, 8298 University Avenue N.E., stated he and Sean McAllister were not acting managers. He never filled out an application to be a manager. Their new manager was out of town and would be back Wednesday. Councilmember Billings said staff found it difficult to attach any credibility to the number they provided since every day food sales were exactly 50 percent, beer sales were 25 percent and liquor sales were 25 percent of the money deposited in the bank. He said it was incredible to believe that any liquor operation could sell exactly 50 percent food, 25 percent beer, 25 percent liquor, especially on those days when the kitchen was closed for the day. Mr. Tierney stated they had boxes of food tickets that he could bring in. FRIDLEY CITY COUNCIL MEETING OF APRIL 28, 2003 PAGE 12 Mr. Sean McAllister, 8298 University Avenue N.E., replied he had been responsible for the books. He had no formal education and was basically estimating. He gave him the books as they are. He never doctored them. They had saved the receipts for what they purchased and had taken steps to correct the problems. They had met with an accounting firm that was going to take this on a weekly basis. They had also applied at St. Paul Technical College for accounting courses. Mr. McAllister said they had new registers and gave Council an information sheet. They bought three and they would be in operation on Monday. They are fully functional registers and would be able to handle the entire menu. MOTION by Councilmember Bolkcom to receive material regarding UX 700 Series terminals. Seconded by Councilmember Barnette. Councilmember Bolkcom asked if they had made any progress with the fire code violations. Mr. McAllister said they complied with the City Fire Marshal 100 percent. The one thing that was not in compliance but they had been given time for, was the door in the back. Councilmember Bolkcom stated she still had concerns about the food sales. There was no way to know if they had met the 40 percent. Mr. McAllister said he hoped that in this one circumstance they could use the invoices and the receipts for food and beer purchases. He had all the invoices for the cost of sales that showed they bought food and that the kitchen had been open. Councilmember Bolkcom asked who the manager of Sean's was. Mr. McAllister said it was Bridget Westland who also worked for Ground Round part-time Councilmember Bolkcom asked who the manager was when she was not there. Mr. McAllister said it was Christopher Vilene. He had been a manager at several restaurants and bars in Fridley for 15 years. Councilmember Bolkcom asked whose license was on the agenda. Mr. Pribyl replied that it was for Sean Tierney. Mr. Tierney apologized and said he did not recall filling it out. Mr. McAllister replied the management duties have been divided. Mr. Tierney asked how many managers the City would like at the restaurant. Councilmember Billings replied the City ordinance says that any employee that serves in a management capacity should have a managerial license. FRIDLEY CITY COUNCIL MEETING OF APRIL 28, 2003 PAGE 13 Mr. McAllister stated they have changed their security. The head of security would carry a telephone and would use it no matter what. He said they only had a need for security on Friday and Saturday nights. They also planned to install surveillance cameras that covered all four sides of the building and parking lot. It would record 24 hours per day, 7 days a week. Councilmember Bolkcom stated it was important that their employees know they needed to call whenever there were problems, not just on Friday and Saturday nights. Mr. McAllister said they would. Mr. McAllister said they had been working on making pizzas and would also have a lunch buffet. He said they planned on using the outside deck more. Mayor Lund asked how much time they thought they needed to get things into compliance. Mr. McAllister said by the end of May. Councilmember Barnette asked how many cooks were on duty. Mr. McAllister said they had three. Councilmember Barnette asked what the kitchen hours were. Mr. McAllister replied 11 a.m. until 10 p.m., including Sundays. Mr. Jeff Namely, 2855 Rice Street, Little Canada, the chef for Sean's Pub, assured Council that he was there seven days a week. Councilmember Barnette asked how they were accounting for the food. Mr. McAllister replied there would be two cash registers behind the bar and one at the service station at the new kitchen window. Mr. Nathan Stout, 824 — 104th Lane NW, General Manager for Sam's Club, stated he knew Mr. Namely. He said Mr. Namely was probably in their facility every day basically buying food. Mr. Vilene said he had been in the bar business for about 15 years all over the City of Fridley. He said he had been with Sean's for almost two and a half months as a bartender and he was going to help them out with the manager position. Councilmember Wolfe asked if he is going to apply for the manager's license. Mr. Vilene said he would if Sean's complied with everything. If they need him to right away, he would. FRIDLEY CITY COUNCIL MEETING OF APRIL 28, 2003 PAGE 14 Ms. Mary Gerdes, 2314 Quail Creek Parkway, Blaine, said she was the gambling manager for Spring Lake Park Youth Hockey. Their organization conducted charitable gambling at Sean's Pub & Grill in Fridley. They started selling pulltabs when the bar was KJ's and continued under the new ownership. She said during the last year she had been at the bar an average of four times per week. When she was there, the kitchen had been open and ready to serve customers. She said the chef was very dedicated to his profession. She said if the City chose not to renew Sean's liquor license, she would not be able to continue to sell pull-tabs and would have to lay off five employees. Ms. Kaylyn VanHorn, 8191 East River Road, Apartment 2, said she lived in Fridley and came to the meeting to offer her support. Mr. Brian Snippen, 1818 — 121 Avenue NW, Apartment 2, Coon Rapids, said he was the head of security for the bar. He and the other security staff have tried their hardest to make it a very safe environment. Mr. Namely said he could assure Council that the kitchen was open seven days per week. He said he was planning on bringing in new business. MOTION by Councilmember Bolkcom to close the public hearing. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE HEARING CLOSED AT 9:38 P.M. OLD BUSINESS: 12. RESOLUTION DENYING RENEWAL OF INTOXICATING LIQUOR LICENSE FOR MN SEAN CO., DB/A SEAN' S GRILL & PUB, GENERALLY LOCATED AT 8298 UNIVERSITY AVENUE N.E. (WARD 3). Councilmember Bolkcom asked Mr. Knaak, City Attorney, if they could grant a temporary license for three months. Mr. Knaak replied that the licenses are usually approved on an annual basis. In the past, there may have been circumstances when they were granted conditionally for a limited period of time. Under the circumstances the City had the discretion and authority to grant a conditional license. He suggested that Council be very specific with respect to the conditions that would need to be met. Councilmember Billings asked exactly what the requirements were for officers of a corporation in terms of background checks. Mr. Sallman, Director of Public Safety, said they were required to do a background check on owners, managers, shareholders, and anyone who had an interest in the business. If there was FRIDLEY CITY COUNCIL MEETING OF APRIL 28, 2003 PAGE 15 something in the background check that would preclude someone from filling that role, they would not recommend that person. Councilmember Billings said with respect to officers, he did not know if there was a requirement that all officers of the corporation had to go through a background check. Mr. Pribyl stated that officers were included. Mr. Sallman stated if there was a change in officers, they would have to conduct a new background check. Councilmember Billings stated the free appetizers could not be added into the food sales ration. He suggested some conditions for the temporary license. Councilmember Barnette asked when the door had to be completed. Mr. McAllister said by the end of May. The door had been ordered and a down payment was made. Mr. Knaak said he believed that one of the conditions should be that failure to comply with any of the conditions could result in immediate termination of the conditional temporary license. Councilmember Wolfe asked what the starting date would be and asked if they would be able to meet the sales tax requirement. Mr. McAllister said they would by the end of May. Mr. Knaak stated that there was a pattern in this case of waiting until the last possible second to provide a minimum of information. To avoid this, they needed to have good faith compliance and if Sean's had not begun a good faith process of licensing their managers, for instance, within a month, that could be a basis for terminating the license. Each of the conditions had to be reasonably enforced, but failure to make a good faith effort to comply with the conditions would serve as a basis for termination of the temporary license. MOTION by Councilmember Bolkcom to grant a temporary conditional intoxicating liquor license to MN Sean Co., d/b/a Sean's Pub & Grill, for three months, or until July 28, 2003, based on the following conditions: 1. Compliance with all fire codes. 2. All crimes and suspected crimes shall be reported to the Police Department and the applicants shall work closely with the Police Department on any issues that arise and meet regularly as determined by the Director of Public Safety. 3. All persons acting in the capacity of a manager, shall have a manager's license. FRIDLEY CITY COUNCIL MEETING OF APRIL 28, 2003 PAGE 16 4. The 40/60 food-to-liquor license shall be maintained on a monthly basis. 5. The City of Fridley Finance Department shall be supplied with a CPA-attested monthly audited financial statement by the l Oth of the following month. 6. Sales taxes and income taxes shall be kept current. 7. All beer and liquor shall be purchased from licensed distributors. 8. Failure to comply with any of the conditions may cause immediate revocation of the liquor license. 9. Background checks shall be conducted on all officers, managers and shareholders. 10. The requirements of the Fridley City Code shall be met by May 15, 2003. Seconded by Councilmember Wolfe. Councilmember Billings asked Sean Tierney and Sean McAllister if they had any questions about these conditions? Mr. McAllister asked if they could have a longer period of time to provide the financial statement. Councilmember Bolkcom replied the month of April by May 10, the month of May by June 10, the month of June by July 10. Councilmember Billings asked if they would be able to have the months of January through April completed by June 10. Mr. McAllister said they would. Mr. Knaak said if the conditions were met, they would ask for a renewal of the license for the remaining balance of the year. Councilmember Billings asked if they had paid the fee for the liquor license renewal. Mr. McAllister replied they have paid for the first six months. Mr. Pribyl agreed. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF APRIL 28, 2003 PAGE 17 9. LICENSES MOTION by Councilmember Bolkcom to approve the licenses. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 3. FIRST READING OF AN ORDINANCE AMENDING FRIDLEY CITY CODE, CHAPTER 901, PENALTIES. Councilmember Billing said he reviewed the ordinance and asked about the section regarding fines. He suggested some changes. Mr. Hickok said the City currently had the ability to fine up to $700. Attorney Knaak said that by law if there was a violation of a City's ordinance, the act was misdemeanor. MOTION by Councilmember Billings to table this item. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 2. ORDINANCE NO. 1176 AMENDING CHAPTER 507, MUNICIPAL BATHING BEACHES. Councilmember Barnette said he received a couple of telephone calls from residents who were concerned that there were not going to be any lifeguards at the swimming beaches. He said he spoke with Mr. Kirk, the Recreation and Natural Resources Director, who told him there would be a person on duty at the beach who would have CPR training and would act as a manager of the beach Dr. Burns stated he believed the person had the duties as building monitor. MOTION by Councilmember Bolkcom to waive the second reading and adopt Ordinance No. 1176 on the second reading and order publication. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 13. INFORMAL STATUS REPORTS Councilmember Wolfe congratulated Mary Rowan for winning one of the highest honors from the Kiwanis Club. FRIDLEY CITY COUNCIL MEETING OF APRIL 28, 2003 PAGE 18 Dr. Burns stated a joint meeting with the HRA was scheduled for Thursday, May 1, at 7:00 p.m. in Meeting Room 1. The major discussion topic would be the Gateway West Development Agreement. ADJOURNMENT. MOTION by Councilmember Barnette to adjourn the meeting. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE APRIL 28, 2003, CITY COUNCIL MEETING ADJOURNED AT 10:28 P.M. Respectfully submitted, Denise M. Letendre Scott J. Lund Recording Secretary Mayor