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07/09/2012 - 31350CITY COUNCIL MEETING CITY OF FRIDLEY JULY 9, 2012 The City Council meeting for the City of Fridley was called to order by Mayor Lund at 7:30 p.m. ROLL CALL: MEMBERS PRESENT: Mayor Lund Councilmember-at-Large Barnette Councilmember Saefke Councilmember Varichak Councilmember Bolkcom OTHERS PRESENT: Scott Hickok, Community Development Director James Kolsuchar, Public Works Director Don Abbott, Public Safety Director William Burns, City Manager Darcy Erickson, City Attorney Darin Nelson, Finance Director Deb Skogen, City Clerk PRESENTATION: Shaunna Johnson, First Vice President of the League of Minnesota Cities, presented Mayor Lund with the C.C. Ludwig Award. The C.C. Ludwig recognizes elected officials who have made significant contributions to Minnesota city government. Mayor Lund thanked the League of Minnesota Cities for this award. Mayor Lund said representatives from the Minnesota Pollution Control Agency are present to provide some answers to questions that were brought up at the town hall meeting held by Erin Brockovich regarding the water quality in Fridley. There will be future town hall meetings scheduled to discuss concerns in more detail. Kathy Sather, Director of the Remediation Division for the Minnesota Pollution Control Agency, said they would like to provide some feedback to concerns raised at the June 27, 2012, town hall meeting. They are willing to participate in any meetings to talk more about specific sites or concerns. Gary Krueger, Project Manager of the State Superfund Program, said he oversees the investigation and cleanup of sites in the state. Although he does not have the Fridley sites, he works in both Washington and Dakota County. The MPCA Superfund Program was established in 1984 and the responsible parties of the sites are usually held accountable to clean up the sites. Their department provides oversight and they are reimbursed from the parties. The problems are FRIDLEY CITY COUNCIL MEETING OF JULY 9, 2012 PAGE 2 with the sites where there is no known responsible party. The state and federal governments have to step up to clean up the site with state or federal Superfund money. In most cases, the MPCA has taken the lead in these federal Superfund sites and worked hand in hand with the EPA on the sites. Whether we have the lead or not, the EPA still has final say on what gets done. We have cooperative agreements with the EPA to provide funding for our program and when the sites are cleaned up, long-term monitoring EPA checks of the site will take place every five years. The MPCA is a well established program, and the EPA is comfortable with us taking the lead on most sites. Mr. Krueger said the Minnesota Department of Health works closely with us especially when it comes to impacts on drinking water. A similar process is in place to do investigations in working hand in hand with EPA. To determine the listing, the state has a State Superfund List that is similar to the National Priorities List. This is what is used to identify Superfund Sites. Once a Superfund Site is identified, it is eligible for clean up dollars. Mr. Krueger said there is a hazard ranking system that is used to help decide if the property should be on the list or not, depending on how the property is scored. The EPA has set a minimum score needed to be eligible for the listing. The FMC site was one of the highest scoring sites in 1983 when it was proposed, but through comments the score dropped a little bit. If a site scores high, it does not mean it will be automatically listed. A process is followed to evaluate risks and clean-up options. Public comment is very important throughout this process. Mr. Krueger said in cases where there are impacts to municipal wells, they look at the site with respect to the drinking water impact. There are MPL sites where we make an effort to find the source, which is an MPCA requirement to figure out who is responsible. We will step in with state/federal funding if we cannot find the party responsible. This can be a long process and sometimes during this time the contamination levels may drop and be barely noticeable. In 2005 the level dropped below drinking water standards and the site no longer needed action or an investigation. We do continue to monitor the situation every five years. Mr. Krueger said there is also a feasibility study done in this process evaluating appropriate treatment options for ground water that is pumped out and it must meet regulatory requirements. We do have to comply with all the requirements. Mr. Krueger said soil vapors came up at one of the meetings and that has been shown to be a problem in areas like shallow water plumes. A risk assessor has looked at this and the levels are below the screening levels relative to where there are residents. There is a low probability of vapor issues. Mr. Krueger said they do whatever they can to have public involvement through meetings and hearings. The MPL sites have information at libraries where documents are kept for the public to view and they are also on the website. Plans for follow up on public information and site- specific information to these sites, what has been done and where we go from here will be coming in the future. Mayor Lund said that modeling came up at the meeting. FRIDLEY CITY COUNCIL MEETING OF JULY 9, 2012 PAGE 3 Mr. Krueger answered that was groundwater modeling, where plumes are going, and most sites are near the Mississippi River. We believe the ground water plumes are traveling towards the river. It also looks at what the concentration is over time in some areas. Mayor Lund asked if they looked at the mapping. Mr. Krueger replied there are plume maps, where they know the e�tent of the groundwater plumes and where they are located. Mayor Lund said he has seen some of the mappings and it looks like the Arsenal site goes west, but it goes south into Minneapolis. He asked if Minneapolis is doing anything about this and if they were doing any carbon filtration. Mr. Krueger said he was not sure. Municipal wells are required to monitor what is coming in and if that is an issue, it will need to be monitored. Councilmember Saefke noted the citizens need to make a distinction between surface water and groundwater. Minneapolis takes water from the Mississippi River and they have gone to micro filtrations so they are dealing with manmade chemicals and organisms found in the surface water. They have spent millions of dollars to do that and have a number of groundwater wells throughout their system. Mayor Lund asked about the ranking system, as Fridley had the number one ranked site, the FMC site. Mr. Krueger replied that is correct. The EPA looks at the groundwater, contamination, where the wells are nearby, intake, how many people it serves, etc. The FMC site was one of the first 400 sites listed and when it was proposed, it had the highest score, 74/100. When the site was approved for the listing, there was an adjustment in the scoring. It was still high but had dropped a little. Once the sites are on the list, the EPA does not look at the highest score first. They look at the risk and the responsible parties. Mayor Lund said the score is still significant. One suggestion brought up at the meeting was to get a carbon filtration system in the City of Fridley, but the cost is in the millions. Mr. Krueger answered the Minnesota Department of Health sets the drinking water standard levels, which are currently 5 parts per billion. According to the Minnesota Department of Health, the drinking water is safe right now. William Burns, City Manager, said in order to get funding, the City has to show a relationship between the contamination of the well field and the Superfund site. The City of New Brighton received federal funding from a TCCAP program from the Army for the GAC system. For Fridley, that direct link has not been established. FRIDLEY CITY COUNCIL MEETING OF JULY 9, 2012 PAGE 4 Mr. Krueger said if the exceedance is above the drinking water standards, that would be available. The site is still on the National Priority List. If we found a source, the City could go to the source; if not, it would be a federal or state-funded action. Dr. Burns said Fridley has not exceeded the standards. Mr. Krueger said it has not. Mayor Lund said the water is not bad enough for funding for a sophisticated filtration system so the levels have to get worse before it gets better. Fridley has exceeded the 5 parts for billion when testing the water a few times throughout the years but now it has dropped significantly. One time a well tested at 9.5 parts per billion and there was a traceable amount which was .2 parts for billion in 2009. It is unnerving to know that it has improved but may get worse. Mr. Krueger said the goal is to try to find the source. Information on specific sites can be found at www.bca.state.mn.us. There will also be information posted on Fridley's website at www. ci. fridley. mn.us. APPROVAL OF PROPOSED CONSENT AGENDA: APPROVAL OF MINUTES: City Council Meeting of June 25, 2012: Councilmember Bolkcom asked for the second paragraph on Page 6 to read: Councilmember Bolkcom said that she just wanted to make sure this made sense, to repair a roof if we are planning to do construction or expansion in the future. APPROVED AS AMENDED. NEW BUSINESS: 1. Receive the Minutes from the Planning Commission Meeting of June 20, 2012. RECEIVED. 2. Resolution Approving an Agreement with Anoka County for State Health Improvement Program Grant. William Burns, City Manager, said that Anoka County has offered Fridley an additional $18,000 in SHIP Funds. The funds must be used by June 30, 2013. Staff's recommendation is we use them to complete the City's bikeway/walkway plan that was not completed under the first SHIP grant. We have included a list of related activities that we intend to complete. Staff recommends Council's approval. FRIDLEY CITY COUNCIL MEETING OF JULY 9, 2012 PAGE 5 THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 3. Resolution Approving Plans and Ordering Advertisement for Bids: Main Street Sidewalk Project No. ST2011-22 William Burns, City Manager, said this project includes construction of pedestrian and bicycle facilities from 61st Avenue to a point just north of I-694. The section north of 57th Avenue will include a 10' walkway that will e�tend from 60th Avenue to 57th Avenue and an on-street bicycle lane. South of 57th Avenue, a shared use path (for bikers and walkers) will be constructed on the west side of Main Street to a point where a future trail bridge will cross I-694 and continue southward. Dr. Burns said the project will also include landscaping, retaining walls, pedestrian ramps, and pavement markings. While we are still waiting for final MnDOT approval, we are asking Council to approve the advertisements for bids subject to its approval. This will enable the City to build the bikeway segment this fall and take advantage of what we expect will be good pricing. The projected cost of the project is $177,000. Of this amount, $110,000 will come from Transit for Livable Communities (TLC) funds. The City will use $37,500 in MSAS money and $29,500 as an in kind match for in-house project design. Staff recommends Council's approval. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 4. Resolution Appointing Representation to the Mississippi Watershed Management Organization Board of Commissioners. William Burns, City Manager, said on March 12, Council approved the City's participation in the Mississippi Water Management Organization (MWMO). The Joint Powers Agreement for the MWMO provides that each member appoint one delegate and one alternate to the MWMO Board. Fridley advertised for these positions and received an application from John Haluska, James Saefke, and Dolores Varichak. Dr. Burns said in view of the fact that this Board is comprised mainly of Council members from member cities and in view of the fact that Jim Saefke is the only candidate who lives within the district, staff recommends that Council appoint Ward 1 Councilmember, James Saefke, to this Board. Staff also recommends Ward 2 Councilmember, Dolores Varichak, be appointed as Jim's alternate to this Board. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 5. Resolution Authorizing the Fridley Fire Department to Participate in Submitting a Proposal to the Minnesota Department of Public Safety to become a State Hazardous Material chemical Assessment Team FRIDLEY CITY COUNCIL MEETING OF JULY 9, 2012 PAGE 6 William Burns, City Manager, said the Fridley Fire Department has been an active member of the North Metro Chemical Assessment Team since 1995. This resolution authorizes its continued participation. Our costs for this participation are largely offset by Minnesota Department of Public Safety reimbursements. Staffrecommends Council's approval. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 6. Resolution Providing for the Sale of $1,295,000 General Obligation Equipment Certificates, Series 2012A. William Burns, City Manager, said this resolution authorizes the sale of $1,295,000 in debt for the purchase of equipment for General Fund departments in 2012 and 2013. The amount includes $600,000 for a fire engine and $270,000 for two six-yard dump trucks. The bond sale is scheduled to take place on August 20, 2012. Staff recommends Council's approval. APPROVED RESOLUTION NO. 2012-43. 7. Appointments to Commissions William Burns, City Manager, said that Council conducted interviews with six City commission applicants in June. Staff recommends the appointment of Greg Akerman to the Parks and Recreation Commission and Eric Boyles to the Environmental Quality and Energy Commission. APPROVED. 8. Claims (155012 - 155182): APPROVED THE CLAIMS AS SUBMITTED AND AS ON FILE. 9. Licenses: APPROVED THE LICENSES AS SUBMITTED AND AS ON FILE. APPROVAL OF CONSENT AGENDA: Councilmember Bolkcom asked for Items 2, 3, 4, and 5 to be removed from the Consent Agenda and placed on the regular agenda. MOTION by Councilmember Barnette to approve the Consent Agenda with the removal of Items 2, 3, 4, and 5. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF JULY 9, 2012 PAGE 7 OPEN FORUM VISITORS: No one from the audience spoke. ADOPTION OF AGENDA: MOTION by Councilmember Bolkcom to approve the Agenda with the addition of Items 2, 3, 4, and 5. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. PUBLIC HEARINGS: 10. Preliminary Assessment Hearing on Oak Glen Creek Improvements Project No. 380. MOTION by Councilmember Bolkcom to waive the reading of the public hearing and open the public hearing. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING OPENED AT 8:30 P.M. James Kosluchar, Public Works Director, said the banks of lower Oak Glen Creek have experienced severe erosion due to a combination of factors, including land use, lack of vegetative cover, and undercutting of non-cohesive banks during peak discharge flow events. The segment of Oak Glen Creek west of East River Road is located on private property and easements are not established that enable City maintenance. It is an e�tremely difficult and costly task for individual property owners to deal with this project on their own. Mr. Kosluchar said the City of Fridley has been working with the Anoka Conservation District (ACD) to develop a plan for mitigation of this erosion. Public meetings have been held with adjacent property owners during development of this plan. The City of Fridley has been working with the Anoka Conservation District (ACD) to develop a plan for mitigation of this erosion. Public meetings have been held with adjacent property owners during development of this plan. Mr. Kosluchar said in April, 2009, a discussion was held with residents about issues. Follow- up discussions were held by ACD staff with each resident, and a draft mitigation plan was developed. In July 2010, design concepts were brought forward for discussion at a meeting with residents. It was concluded that an outside source of funding would be needed to make the project feasible and to reduce assessment impacts on property owners. Mr. Kosluchar said in 2011, ACD and the City of Fridley applied for a grant through the Clean Water Legacy program for 80% of the project costs. The project was awarded by the state in December 2011. A meeting was held in March 2012 to present this information to the residents. Due to the time since the original design, this needed updating. In May 2012, another workshop FRIDLEY CITY COUNCIL MEETING OF JULY 9, 2012 PAGE 8 was held with the residents, showing the final design. At both of these meetings, funding was discussed along with special assessments to benefiting properties. Mr. Kosluchar said on June 11, 2012, a Feasibility Report was received by the City Council. The project is to be subject to MN Chapter 429. At this meeting, the City Council adopted a resolution setting a public hearing for tonight. The proposed project includes the installation oi rock check dams, boulder slope stabilization, brush bundles and revetments for stabilization, vegetative riprap, shrub plantings, erosion control blanket and seeding, e�ension of drainage pipes and rain leaders, installation of storm water Best Management Practices (BMPs) and top of bank buffer maintenance by property owners. Mr. Kosluchar said that the following easements will be required for this project. • One existing easement for a storm sewer pipe that empties to the creek. • Easements need to be established where planned improvements will be installed. • Easements drafted, not yet sent. Limitations on staff time have impeded our ability to get these out to date. Until easements are in place that will enable construction of this project, we recommend that the City Council wait to initiate this project. Mr. Kosluchar said the project schedule will be presented at the time we recommend initiation. The project will likely start this fall or winter. A separate project is being performed by the City to remove trees through a grant from the Conservation Corps-Minnesota and Iowa; this may start in late summer. In the project agreement with ACD, the City will be the lead agency and City will handle inspection during construction and the acceptance process. As proposed, the City will accept maintenance of the improvements. Occasional structural elements will need to be inspected and repaired and thinning of trees that inhibit understory plant growth will be required. Mr. Kosluchar said property owners have been notified that they will need to maintain buffer strip vegetation, rain leader e�tensions (where applicable), and BMPs associated with the project through a maintenance agreement. Mr. Kosluchar reviewed the following project costs and funding sources: Proiect Costs Construction Costs $ 384,500 Engineering and CPM 40,200 Total Project Costs $ 424,700 FRIDLEY CITY COUNCIL MEETING OF JULY 9, 2012 PAGE 9 Proiect Funding Sources Clean Water Legacy Grant $ 339,700 Storm Water Utility Fund 42,500 Special Assessments* 42,500 Total Project Funding $ 424,700 *21 Properties assessed approximately $2, 000 each Mr. Kosluchar reviewed the Repayment of Assessment options: Option 1: Lump sum paid within 30 days of the assessment hearing (after construction). Option 2: Added to property taxes that are paid over 10 years with an interest rate of approximately 6.0%. Option 3: Seniors citizens meeting certain criteria may request to have the assessment deferred until the future sale of the property. Interest accrues until the sale. (Per City Res. No. 14-1995) Mr. Kosluchar said going forward, there will be an item on a future agenda to authorize a resolution directing staff to finalize plans and authorizing the advertisement for bids. If approved, the project may be advertised for bid letting this fall. If approved, construction of this project would likely continue through 2013. Staff requests the City Council open the preliminary hearing on Oak Glen Creek Improvements Project No. 380. Councilmember Bolkcom asked when the funds from the Legacy Lean Grant needed to be spent. Mr. Kosluchar answered there is a two-year period on that grant. It must be complete by December, 2013. Councilmember Bolkcom asked if the easement agreements were going out this week. Mr. Kosluchar replied staff is doing their best to get them done and sent out. Councilmember Bolkcom said the easements have to be done before we can go forward, and that includes cutting down the trees, which we have another grant to help with those costs that has to be used soon. If we wait unti12013, to start this project, it is amazing in a year the drastic changes that can happen to the area. She asked if this project had any special assessments. Mr. Kosluchar said in this case, there is an 80% grant funding opportunity. Councilmember Bolkcom said that Locke Lake and Rice Creek had similar projects with benefiting parties. There has been conversation relating to Plymouth or Maple Grove where there were no special assessments and the project was paid through the storm water funds. FRIDLEY CITY COUNCIL MEETING OF JULY 9, 2012 PAGE 10 Mr. Kosluchar said their storm water rate is quadruple to Fridley's storm water rate. Councilmember Bolkcom wanted to thank Coon Creek Watershed District, as they have talked about how important it is to do this project. Anoka County Conservation has also been incredible. Staff has been to almost everyone's home, marking the trees, etc. She asked what revetments were. Mr. Kosluchar revetments are trees that are woven together and placed in a bank; eroded materials fill in the space and create a solid wall. Councilmember Bolkcom asked if all easement agreements needed to be received before we can start cutting down the trees. Mr. Kosluchar answered yes. Some properties are not affected by the water and do not touch the creeks but other banks are clear back into the properties. Don Wegler Jr., 7356 East River Road, said his home is a long way from the creek and he has no erosion problems. He is willing to help his neighbors but as far as taxation, he is not in favor of that because it will not increase the value of his property. He has not had any problems for many years and he sees no worth for his property. Bob Lange, 189 Logan Parkway N.E., said he is in favor of the project as the City needs to get ahead of the erosion and all the water that comes from the east. He would like to see it done and the financial picture is good and fair because of the grant. It is important to give this project more priority. The creek changes every year and more erosion is occurring. Councilmember Bolkcom said the easement agreement is for maintaining ongoing easements as far as maintenance for the City to fix improvements. Mr. Kosluchar said there are three documents for each owner to work with: a maintenance agreement, permanent easement and right of entry for the removal of trees. Mark Nelsen, 235 Logan Parkway, said his property is on the river end of the creek and they are experiencing heavy erosion. The creek can move piles of sand into the river during heavy rains. The sooner we can do something the better. Looking at the financial end, he could not get a contractor to take care of this problem for $2,000. Abe Spirelli, 115 Glen Creek Road NE, said he has had to put in drains on his property and has lost trees in the yard. This project is very important to him. Mayor Lund noted that Mr. Spinelli lived right ne�t to the person who is not in favor of the project. He asked how the erosion could affect his property and not his neighbor. Mr. Spirelli said that his neighbor's home is far away from the river, the erosion affects his property but not his home. FRIDLEY CITY COUNCIL MEETING OF JULY 9, 2012 PAGE 11 Jacob Smith, 151 Glen Creek Road NE, said he bought his property in June of 2009, and last year he lost two large trees and with those trees, 20-30 yards of dirt went down the creek Today there is further erosion and this is all within a short period of time. He asked why it was taking so long. Mayor Lund said in 1970-1980, there was a design plan to address this issue but it fell apart because of the cost. Now there is a funding source to pay for part of the cost. Councilmember Bolkcom added over the years, more trees have grown and are pulling the bank down. Also people throw leaves and grass clippings in the creek and that causes vegetation that holds the banks up. The erosion is a combination of all these things. Mr. Smith said the erosion is speeding up and time is running out. He is worried if we don't get this in soon this will impact the cost of fixing it even ne�t year. It has been another wet spring with a lot more damage and he wants to be able to correct things with the monies we have right now. Councilmember Bolkcom said that is why we are trying to get easement agreements back to us so we can start cutting trees, etc. Mr. Smith asked what happens if not everyone agrees to do it. We care about the damage that is happening and compliment everyone for trying very hard to fix this problem. Mr. Kosluchar said it is imperative that all easement agreements are signed and returned. Mr. Smith asked what happens if they are all not returned. Mr. Kosluchar said the project cannot go forward without the easement agreements signed. Mr. Smith asked if the City would inform residents which owners have not signed or is that confidential information. Darcy Erickson, City Attorney, said that would not be private information and would be available. Homeowners can contact the city and request that information. Mayor Lund said he understood Mr. Smith's concern. There have been issues with property owners who have not wanted to sign easements in the past. It is possible to get around that but it will delay the project significantly, as it would have to go to court. Attorney Erickson said participation of everyone. signed and returned. the feasibility of this project depends on easement agreements and If owners do not sign, it affects the project. All agreements need to be Councilmember Bolkcom said if homeowners have any questions, they should contact Council and they will work through the questions. There is an urgency to get the easement agreements out this week. FRIDLEY CITY COUNCIL MEETING OF JULY 9, 2012 PAGE 12 Mr. Lange said the Mississippi River dam is getting worse and worse. Property lines are defined by the river so the property lines are shifting. Councilmember Bolkcom said that Coon Creek Watershed District will continue to look at doing things upstream to help with this problem. The big concern is to fix this now and maintain it as funding becomes available. MOTION by Councilmember Bolkcom to close the public hearing. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING CLOSED AT 9:10 P.M. 11. Appeal Hearing and Resolution Denying a Liquor Managerial License for Emily Louise Dirk. MOTION by Councilmember Bolkcom to open the public hearing. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING OPENED AT 9:11 P.M. Attorney Erickson swore in all witnesses giving testimony. Deb Skogen, City Clerk, said Fridley received a liquor license renewal application dated March 6, 2012, on March 12 from Rob Did it Again, Inc., d/b/a Chris & Rob's Chicago (Chris & Rob's). Chris & Rob's sell Strong Malt Liquor and Wine. Section 603.20 of the City Code requires a liquor managerial license. Chris & Rob's provided three liquor managerial license applications, including the application of Emily Dirk. Ms. Skogen said the license applications were forwarded to the Fridley Police Department for the background investigation required under 603.20.4 of the City Code. On April 13, 2013, the Police Department completed its background investigation. The background check revealed two criminal convictions: Felony Theft Conviction — Plea 11-14-2011; sentenced 01-24-2012 - theft involved an estimated $40,000 in cash and property from parents. Criminally charged in May, 2011. Misdemeanor Worthless Check Conviction - Plea 06-07-2011 - Two dishonored checks passed in November of 2008. Based on the very recent and significant background issues, the Police Department denied the liquor managerial license for Emily Dirk. Ms. Skogen said staff mailed a letter dated April 19, 2012, to Ms. Dirk notifying her of denial, grounds for denial and the appeal process. (Exhibit 7) Staff received a letter dated May 20, FRIDLEY CITY COUNCIL MEETING OF JULY 9, 2012 PAGE 13 2012, from Ms. Dirk requesting an appeal hearing before the City CounciL (Exhibit 8) Staff has had numerous communications with Ms. Dirk regarding the scheduling and confirmation of the July 9, 2012, appeal hearing. (Exhibit 9) Ms. Skogen said staff mailed the Notice of Appeal letter to Ms. Dirk on June 27, 2012. (Exhibit 10) City staff has obtained certified copies of Exhibits 1-6 from Anoka County that should be received as part of the record as Exhibits lA-6A. In addition, Exhibits 11 through 14 contain references to Black's Law Dictionary definitions of "Moral Turpitude" and "Fiduciary Duty," City Code Section 603.20, and MN Statute Section 364.03 which should also be received as part of the record. Ms. Skogen said staff recommends holding the appeal hearing to receive evidence and hear testimony on this matter. If the City Council agrees with the recommended denial, Council should make a motion approving a resolution denying the liquor managerial license for Emily Louise Dirk Attachment A is a proposed resolution affirming denial. The City Council may adopt these findings of fact, add to these findings, modify these findings of fact, or adopt different findings of fact. MOTION by Councilmember Bolkcom to move into record Exhibits lA-6A. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION by Councilmember Bolkcom to move into record Exhibits 11-14. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Darcy Erickson, City Attorney, noted this information was submitted to Ms. Dirk prior to the hearing and the pages are also recited in the resolution. Attorney Erickson asked if Chris & Rob's holds a 3.2 liquor and wine license and if Ms. Skogen had a conversation with Ms. Dirk and agreed to hold the appeal hearing tonight. Ms. Skogen answered yes. Don Abbott, Public Safety Director, said the Police Department did the background check which indicated that Ms. Dirk was convicted as Ms. Skogen indicated; a felony theft of cash, coins and jewelry from her parents which Ms. Dirk pled guilty to on November 14, 2011. She was sentenced January 24, 2012, to five days in jail, 10 years probation and 100 community service hours and conditions. Also indicated were two dishonored checks resulting in a misdemeanor in an Anoka County court case. A guilty plea was entered on that charge on June 7, 2011. That is the summary of the two issues of criminal history the Police Department found. FRIDLEY CITY COUNCIL MEETING OF JULY 9, 2012 PAGE 14 Councilmember Bolkcom asked if this background check was any different from anyone else who has made an application for a managerial license. Chief Abbott answered no, this is a standard background check conducted for any managerial license. Most City applications have similar background checks and it is in the City Code. The City Code directs the Police Department to conduct this background check. Attorney Erickson asked if Ms. Dirk is currently on supervised probation through January 24, 2022; Exhibit 6. Chief Abbott replied yes. Attorney Erickson asked what the terms were of her probation. Chief Abbott read that Ms. Dirk must remain law-abiding and of good behavior, follow all instructions of probation, psychological evaluation/treatment as recommended by Corrections — follow all recommendations including counseling or medication — use Corrections as collateral, cognitive skill training as recommended by Corrections, supply DNA sample, obtain employment and maintain employment as recommended by Corrections — cannot hold a job that has Fiduciary responsibility — to notify any future employers of this offense — Corrections to notify current employer of this offense, and to pay restitution of $1,890.39 to Lincoln Pawn and $18,050 to Merritt and Lynette Frisbie — pay on schedule per Corrections. Attorney Erickson asked if there was less than four months lapse between the guilty plea and the application for the managerial license. Chief Abbott answered yes. Attorney Erickson noted the time lapse from Ms. Dirk's sentence to the application is approximately two months. Chief Abbott answered yes. Attorney Erickson asked what the responsibilities were of a manager were for a liquor managerial license. Chief Abbott said that within the City the licensed manager is to prevent the sale of alcohol to minors, supervise staff to not sell to minors, prevent the sale of alcohol to intoxicated persons and directing staff to do the same. Other responsibilities include preventing the sale of liquor outside of the established hours and accurate reporting of the alcohol sales. Attorney Erickson noted this is not an exhausted list; there may be other duties a manager may perform. Chief Abbott answered yes. Generally, the code requires the licensee to delegate to a manager other duties. FRIDLEY CITY COUNCIL MEETING OF JULY 9, 2012 PAGE 15 Attorney Erickson said the manager would act on the behalf of and for the benefit of the liquor licensee and would be required to act on behalf of the liquor license. Chief Abbott answered yes. It is clear that the owners are typically not on the premise at all times. An authorized agent is on the premise to ensure that all laws and ordinances are followed. Someone on duty at the location is there and physically ensuring the business is operated and staff is adhering to the laws and ordinances of the sale and provision of alcohol. Attorney Erickson said so the owners depend on a manger to adhere to the laws of alcohol for the state and the city. The manager acts on behalf of the liquor licensing. Do you believe this involves fiduciary responsibilities? Chief Abbott said that is his understanding of the manager's duties. Many years ago, he sold off-sale 3.2 beer at a store he managed and the manager does have access to control money, and take money in and out of the business. This is a fiduciary responsibility. Attorney Erickson asked if Ms. Dirk's conviction cast any significant doubt on her to be trustworthy, reliable and have the ability to support her personal interest in support of the employer. Chief Abbott said that is the concern of the Police Department, which led to the recommended denial of the license. In order of us to depend on a manger, that person needs to adhere to the Minnesota State Statutes. Attorney Erickson asked if the criminal conviction history of the applicant limited her ability to act as a licensed manager of the employees under the compliance of liquor rules. Chief Abbott answered yes. Attorney Erickson asked if it was in the best interests of public safety to issue a managerial license to the applicant. Chief Abbott said he cannot impress enough to license holders that management is everything when it comes to maintaining order and running a safe operation. It is not in the best interests of public safety to issue the license to the applicant. Attorney Erickson asked if there was sufficient time between the sentence and application to show rehabilitation of the crimes and serve in capacity as a manager. Chief Abbott answered no. When we get an application we look at the age of the offense, the passage of time and we make a recommendation. In this case it stands out to have such a significant violation occur in just a matter of 2-4 months--less than a year of the offense itself. That factors into our decision. This is very recent. FRIDLEY CITY COUNCIL MEETING OF JULY 9, 2012 PAGE 16 Attorney Erickson asked in Exhibit 1, what the age was of the applicant at the time of the offenses. Chief Abbott noted that Ms. Dirk date of birth is June 14, 1979, which calculates her at 33 years of age at the date of the application. Attorney Erickson asked if this was a sufficient age and understanding of the crimes and cannot be described as of discretion of youth. Chief Abbott said at the time of the guilty plea, she was 31. The offense occurred at age 29. Yes, that is old enough to understand the crime. Attorney Erickson added this is not an act committed by a young 22 year-old who may not have understood the wrongness of the actions. Chief Abbott answered yes, once you achieve the age of 18 you are to be able to know the difference between right and wrong. Robert Dubnecay, 20475 Busch Street N.W., asked when Ms. Dirk was denied her application. The Chief can make a recommendation to deny but not actually deny her application. Ms. Skogen said that when the City approved the liquor license, the associated license section 603.20 says to involve the Police Department to recommend denial of a license. The liquor license was approved by City Council. This application did not come to Council as it was recommended for denial by the Police Department. Mr. Dubnecay noted the Chief cannot deny a license, he can recommend denial but not deny. Attorney Erickson said that an administrative denial provides power of the Police Chief to recommend denial. Mr. Dubnecay noted that the letter dated April 19, 2012 says Ms. Dirk was denied, not recommended for denial and the grounds for the denial of the license. Only Council can recommend that denial. Mayor Lund said that everyone is here tonight to hear testimony to approve denial or if we feel sufficient evidence has been submitted that would not deny the license. Emily Dirk, 725 Sunset Parkway, asked what she was being denied, and the basis for the denial. Mayor Lund said that the ongoing discussions from the City Attorney and Chief Abbott and the exhibits that were given to everyone, answers that question sufficiently. Ms. Dirk agreed she is on probation and she has notified her employer and the probation department and has a letter stating she is not breaking probation on fiduciary responsibilities. They knew what she was doing when she was sentenced and her responsibilities have not FRIDLEY CITY COUNCIL MEETING OF JULY 9, 2012 PAGE 17 changed since she was charged. Mr. Dubnecay also knows what she was charged with. Mr. Dubnecay has to write a letter every six months saying she is okay to be in her position. She is not breaking any terms of her probation. Mayor Lund asked if Ms. Dirk was working at Chris & Rob's in a managerial position before she was sentenced. Ms. Dirk answered yes; she was an assistant manager. Mayor Lund asked if she had a license to work in that capacity. Attorney Erickson asked if prior to her sentencing she worked as a manager. Mr. Dubnecay said she was a manager before and a general manager after. Attorney Erickson said the City Code uses the term manager and within seven days of employment as manager the person must apply for and submit to the City an application for a managerial license. Mr. Dubnecay said he was not aware of that at the time. Councilmember Saefke noted if there was not a liquor license involved, this would not be an issue. Attorney Erickson said a managerial license is required because of the liquor license. Mr. Dubnecay said the claims state moral turpitude. It has to do with cash. Councilmember Saefke said Fridley City Code, Section 603.20.6, "Any license issued hereunder may be revoked for any violation of this Chapter or of Minnesota Statutes Sections 340.07 through 340.40 or for conviction of any crime or misdemeanor involving moral turpitude." The power to revoke a license based upon a conviction of a crime or misdemeanor involving moral turpitude includes the power to deny a license on those grounds. The Applicant's conviction for Misdemeanor Theft — Issue Dishonored Check —Value Not More Than $250 is a crime of moral turpitude, as it is a crime of dishonesty and violates accepted moral standards in the community. Attorney Erickson said Chapter 340 is a predecessor to 340A which is the state liquor license statutes. Ms. Skogen told Ms. Dirk that the statues involved with respect to moral turpitude are undefined according to Minnesota State statutes and not defined in state law, so we provided a common accepted definition of moral turpitude. Councilmember Saefke asked if moral turpitude refers to a felony or misdemeanor. Attorney Erickson said that it includes both. FRIDLEY CITY COUNCIL MEETING OF JULY 9, 2012 PAGE 18 MOTION by Councilmember Bolkcom to move into record a letter from Probation Officer Steve Tusa, dated June 27, 2012. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Councilmember Bolkcom said Mr. Tusa may not be aware of our liquor managerial license requirements. He says it is okay for Ms. Dirk to work as Assistant Manager but that also means the establishment serves intoxicating beverages, it also says General Manager in the letter. Does this person know the establishment sells intoxicating beverages? Chief Abbott said he did contact the Anoka County Community Corrections Center at the end of June. He spoke with the Probation Service Center as Ms. Dirk does not have a specific assigned probation officer--it is whoever answers the phone for that day. He did discuss what position she applied for, the Assistant Manager position, per the application that was turned in. Chief Abbott asked if that would be an issue with the probation and Mr. Tusa said he would have to check into that and this letter is a result of that. In the letter we learned that she was promoted to General Manager. The letter says the Correction Department knows that and does not have a problem with that nor does it violate her probation to hold that position. Attorney Erickson asked with respect for the managerial license application, if there was a concern that there was no assigned supervising agent for Ms. Dirk. Chief Abbott said that he is comfortable the probation officer is not one person. Ms. Dirk said she does not have an assigned probation officer because she is considered a low risk She has taken the Cognitive Thinking Class and is considered a low risk felon. She has been doing everything she is supposed to be doing and is an outstanding citizen. She could have crawled into a hole and done nothing but she is trying to pick herself up and work The City is making her feel like she does not deserve a second chance. Mayor Lund said he was sorry she felt that way and they are trying to be as fair as possible. Ms. Dirk said that a task force for underage drinkers was sent in and she passed that test. She knows the City's laws, and for the last nine months has been doing a good job at managing the restaurant, and her staff has been doing their job. Mayor Lund was concerned that no managerial application was made for the nine months Ms. Dirk has been working in that capacity. He said it is positive that she knows the laws and passed the underage drinking test. The negative is there is not a lot of time lapse from the felony into when you were in this type of a position. Credibility and trustworthiness is in question. Councilmember Bolkcom asked if the letter from Mr. Tusa negates anything that is related to 603.20; even if the probation officer feels this can happen. The City of Fridley does background checks. That is part of the liquor license. FRIDLEY CITY COUNCIL MEETING OF JULY 9, 2012 PAGE 19 Attorney Erickson answered no, it does warrant to strike the provision in the resolution that has been submitted with respect to find it a violation of the terms and condition of her probation. The analysis the Council needs to engage is in Minnesota State Statute 364.03, Minnesota Rehabilitation Statute. That statue sets forth the consideration factors, criteria that the Council considers. This letter does not make that process a conclusion that you must grant it. It would be appropriate to strike finding 18 in view of this letter. Ms. Dirks said 364.03 read "no person shall be disqualified from public employment, nor shall a person be disqualified from pursuing, practicing, or engaging in any occupation for which a license is required solely or in part because of a prior conviction of a crime or crimes, unless the crime or crimes for which convicted directly relate to the position of employment sought or the occupation for which the license is sought." Mr. Dubnecay added so in order to serve alcohol you must be trustworthy. Councilmember Bolkcom said there are provisions when you have a restaurant that serves intoxicating beverages that you must abide by all the laws; trustworthy, yes, in terms of serving those of legal age. My point to Ms. Erickson was the letter from corrections. It is great she is rehabilitating herself, but the question is that it is still in the Minnesota State Statues and the City Code that is what you need to do to get a managers license. Mr. Dubnecay asked if she was putting the moral turpitude clause in the code. Attorney Erickson agreed with what Ms. Dirk read. She said she does not mean to speak for others, but believes the convictions directly relate to the role and duties of a manager. Mr. Dubnecay asked if she can be a manager if no liquor is involved. Attorney Erickson replied that Ms. Dirk submitted a liquor manager license application for the establishment. Mr. Dubnecay repeated that Ms. Dirk could be a manger but not a liquor manager. He had a conversation with Chief Abbott about this and Chief Abbott advised to reclassify her job title. Chief Abbott said that conversation took place right after he recommended denial of the managerial license. Mr. Dubnecay said then he would have to fire her and she could not work there anymore. Chief Abbott said she could still work other duties for his establishment like cooks, etc., but not in the liquor management capacity. He did not indicate to change her job title but to change the job. That is the issue, the license liquor manager vs. other jobs in his establishment. Mr. Dubnecay distributed a court case finding dated February 7, 2006. He referenced page 9 in regards to moral turpitude. It reads "Moral turpitude is not defined in the statutes or rules governing licenses issued by the Commissioner of Commerce. The Department's investigator who considered the Respondent's application was not aware of any particular definition used by the Department and was unable to articulate the definition he used. Black's Law Dictionary FRIDLEY CITY COUNCIL MEETING OF JULY 9, 2012 PAGE 20 defines "moral turpitude" as an "[a]ct of baseness, vileness or the depravity in private and social duties which man owes to his fellow man, or to society in general, contrary to accepted and customary rules of right and duty between man and man," and as an "[a]ct or behavior that gravely violates moral sentiment or accepted moral standards of (the) community." In a criminal conte�t, moral turpitude refers to the "quality of a crime involving grave infringement of moral sentiment of the community ...." In a previous case involving an application for a real estate salesperson's license, Administrative Law Judge Luis found that possession of child pornography was clearly a crime involving "moral turpitude" within the meaning of Minn. Stat. §60K.43, Subd. 1(6). Judge Luis noted that the act of possession of pornographic material depicting se�ual activity by or with minors has been made criminal by the Minnesota Legislature in Minn. Stat. §617.247 and that "the act of possessing such material is condemned because of the inherent base conduct and depravity involved as elements of the offense." It is apparent that the Respondent's conviction of criminal se�ual conduct in the second degree in violation of Minn. Stat. §609.343 also involves elements of depravity and violation of accepted moral standards consistent with the common understanding of the meaning of the phrase "moral turpitude." The Commissioner thus appears to have the authority under Minn. Stat. §60K.43, Subd. 1(6), to deny the application of the Respondent. The more difficult question, however, is whether Minn. Stat. §60K.43, Subd. 1(6) should be interpreted to mean that a conviction of any crime involving moral turpitude must result in a permanent bar to licensure, regardless of the relationship between the crime committed and the licensure sought, the amount of time that has elapsed since the crime was committed, or the rehabilitation efforts of the applicant. Chapter 364 of the Minnesota Statutes declares that "it is the policy of the state of Minnesota to encourage and contribute to the rehabilitation of criminal offenders and to assist them in the resumption of the responsibilities of citizenship" and notes that the "opportunity to ... engage in a meaningful and profitable ... occupation ... is essential to rehabilitation and the resumption of the responsibilities of citizenship." Chapter 364 generally states that a person cannot be disqualified from pursuing a licensed occupation due to prior conviction of a crime unless the crime directly relates to the occupation for which the license is sought. If the crime is, in fact, directly related to the occupation for which a license is sought, the person cannot be disqualified if he or she can show competent evidence of sufficient rehabilitation and present fitness to perform the duties of the occupation. Her parole officer says she can perform these duties. Attorney Erickson said to read Statute 364 carefully. The definition of sufficient evidence of rehabilitation may be established by the production oi (1) a copy of the local, state, or federal release order; and (2) evidence showing that at least one year has elapsed since release from any local, state, or federal correctional institution without subsequent conviction of a crime; and evidence showing compliance with all terms and conditions of probation or parole; or (3) a copy of the relevant Department of Corrections discharge order or other documents showing completion of probation or parole supervision. None of this has been brought forward tonight. Mr. Dubnecay said this is brought up by the findings of moral turpitude and that is not enforceable; it is too vague and broad and cannot be used. FRIDLEY CITY COUNCIL MEETING OF JULY 9, 2012 PAGE 21 Attorney Erickson said she has not had time to read the information. If there was any other evidence or documents that could be presented, she was not aware of any information that was submitted formally by Ms. Dirk other than the testimony of Ms. Dirk Subdivision 3b talks about submitting other elements for Council consideration. Ms. Dirk said there is a program where they would bond her up to $5,000 to ensure the City that she would not cause any harm and to help rehabilitate her for re-employment. MOTION by Councilmember Bolkcom to move into record the Findings of Fact, Conclusions, and Recommendation from the Office of Administrative Hearings for Brett Isaac Ma�vvell. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION by Councilmember Bolkcom to move into record the information sheet on the Federal Bonding Program submitted by Ms. Dirk Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Ms. Dirk said she is doing all she can to do to make herself credible. She asked how her theft would take her away from serving a bottle of beer. She carded under aged drinkers and denied serving alcoholic beverage to them. She passed the test for City inspection. Councilmember Bolkcom said passing the test of not serving underage drinkers is not the only responsibility in dealing with the overall license. She added there are different job responsibilities between an assistant manager, manger and the managerial license. Mr. Dubnecay said the City does not have a difference between managerial jobs. Councilmember Bolkcom said there is a difference between being a manager at an Old Country Buffet and Chris n Rob's. A manager does not need to apply for an application if they work at the Old Country Buffet but an application for a managerial liquor license is needed to be a manager at Chris & Rob's. Ms. Dirk did abide by the rules in passing the City test of underage drinkers but the other part of the approval process is to pass the background check. Mr. Dubnecay said that he has similar restaurants that serve beer and they do not have to go through a background check It is not right to discriminate against past things that she has been found guilty of. Just because she wrote bad checks should not mean she cannot sell a bottle of beer. Attorney Erickson said Chris & Rob's sells intoxicating liquor and this requires a licensed manager because it is a liquor establishment. Ms. Dirk's application came in as a liquor managerial license. This is not because she serves alcohol but because she is responsible for FRIDLEY CITY COUNCIL MEETING OF JULY 9, 2012 PAGE 22 what occurs on the premises under her watch. She is manager of the establishment and responsible for all that occurs with alcohol such as minor service, after hour service, etc. The manager of food service without liquor and that of one that sells liquor are different. The City Council can consider factors in State Statute 364.03. Ms. Dirk has passed the liquor checks and that is commendable; it is also commendable that she is trying to turn her life around. Council needs to pay attention to State Statute 364.03. It says that a lack of time between conviction and the application for a license as well as other items such as the age at the time of the offense and the nature of the crime. There is direct relationship of the crime to the position that she seeks. There needs to be trustworthiness and credibility when it comes to the managerial responsibilities. Mayor Lund concurred with that statement. He commended Ms. Dirk on the things she has been doing. Unfortunately, there has been a lack of time to prove hersel£ Also there has been an attempt to try to confuse the issue about assistant manager, general manager and licensed liquor store manager. He is concerned that there were only months that passed between the crime and when the application was made. He concurred with the City Attorney's summation. Dr. Burns asked what time beyond the crime would be considered acceptable in terms for her to have a managerial license—one year, two year. Chief Abbott said there is no indication in the State Statue or in the City Code what "a reasonable amount of time" would be. In other City employment background checks we do, we look at five years between a DUI and eligibility to have job in the City to operate a city vehicle. Time is not defined. Councilmember Barnette said on Page 44 of the agenda, it states under Minn. Stat. § 364.03, Subd. 3(a) that: (a) A person who has been convicted of a crime or crimes which directly relate to the public employment sought or to the occupation for which a license is sought shall not be disqualified from the employment or occupation if the person can show competent evidence of sufficient rehabilitation and present fitness to perform the duties of the public employment sought or the occupation for which the license is sought. Sufficient evidence of rehabilitation may be established by the production oi (1) a copy of the local, state, or federal release order; and (2) evidence showing that at least one year has elapsed since release from any local, state, or federal correctional institution without subsequent conviction of a crime; and evidence showing compliance with all terms and conditions of probation or parole; or (3) copy of the relevant Department of Corrections discharge order or other documents showing completion of probation or parole supervision. He asked if Ms. Dirk has met any of those. FRIDLEY CITY COUNCIL MEETING OF JULY 9, 2012 PAGE 23 Ms. Dirk said once she pays off the restitution the probation would be dropped. She is a low risk offender to this county which is why she does not have an assigned probation officer. She has done all she is supposed to do. Councilmember Varichak asked how long it would take Ms. Dirk to pay the restitution. Ms. Dirk said she could pay it off within 2'/z years with the current money she is making and position she has. Mr. Dubnecay took responsibility for the late filing of the managerial license. And as far as the different job titles; Ms. Dirk has did so well he has promoted her from assistant manager to general manger before she was sentenced. Ms. Dirk has increased sales and worked well with the public and schools. This establishment does serve alcohol but that did not amount to more than $1,000 last year. The alcohol sales are a minor part of this business. Mayor Lund asked why they have a managerial license if the amount of alcohol sales is so small. Mr. Dubnecay said he has businesses in three other cities, and Fridley is the only City that requires this type of license. Councilmember Saefke said if the liquor sales are not that great maybe he would want to consider surrendering the liquor license. Then it would not be an issue anymore. Mr. Dubnecay said he would rather Council deny the request and they would go back to court for discrimination. Councilmember Saefke commended Ms. Dirk for what she has done but the paperwork he has received shows the conviction of two charges. He commended Mr. Dubnecay for hiring Ms. Dirk but Council is obligated to follow City ordinances and State Statutes. It is not a matter of discrimination; if Ms. Dirk worked at Perkins, her background would not be a problem. Ms. Dirk said her job in the restaurant is not to sell beer. She asked what the difference would be if they took away the liquor license. Councilmember Varichak said the issue is because the restaurant sells intoxicating beverages. Councilmember Bolkcom said the confusion is the serving of alcohol and because there are State Statues. State Statutes, §304.64.03 that has to do with the intoxicating beverage license related to the liquor license. This is not discrimination. It has to do with the State Statutes. This has nothing to do with Ms. Dirk, the establishment, or the rehabilitation. Councilmember Bolkcom commended Ms. Dirk for turning her life around and it is a sad situation. This is an example of how a mistake can snowball into something else. FRIDLEY CITY COUNCIL MEETING OF JULY 9, 2012 PAGE 24 Audrey Nelson, 250 61st Avenue NE, said she does not know Emily but can relate to what it is that she is going though. She had a son go through this and have to prove himself. Ms. Dirk deserves a chance. Mayor Lund said that she was given chance this evening as Council is taking evidence and it has been submitted on her behalf. MOTION by Councilmember Bolkcom to close the public hearing. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING CLOSED AT 10:30 P.M. MOTION by Councilmember Bolkcom to make the following amendments to the resolution: Page 45 2. That each and all of the foregoing exhibits, Exhibit 1 through 14 are incorporated herein as a part of the record of these proceedings. Page 47 18. The position of manager naturally involves fiduciary responsibilities as she must act on behalf of and for the benefit of the liquor licensee. ��t#� Ei1r'"cu'ccivic.�B� �cicicl`i��L2�� "�icJz�iv�cclB�}c�icu� �l..�l„ I„�. f��. ,.. I�.l�l�.,... f;�l..��..�... �. ��l,�l�t�„� Page 48 add 28. Applicant has not submitted evidence of factors set forth in Minn. Stat. §364.03, sub 3, 1-3. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION by Councilmember Bolkcom to adopt Resolution No. 2012-44. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Councilmember Bolkcom said that this is a tough decision and she wished the best for Ms. Dirk. Councilmember Varichak commended Ms. Dirk in trying to get her life back on track and doing the right thing. FRIDLEY CITY COUNCIL MEETING OF JULY 9, 2012 PAGE 25 NEW BUSINESS: 12. Resolution Approving Special Use Permit, SP #12-03 for Sam's Club, Generally Located at 8150 University Avenue N.E. (Ward 3). Scott Hickok, Community Development Director, said petitioner is requesting a special use permit to allow motor vehicle fueling dispensing services by constructing a gas station within the existing parking lot of the Sam's Club property, located at 8150 University Avenue. The project will include the construction of a 192 square foot kiosk building and six fueling pumps that are covered by a canopy. They will also install three underground storage gasoline tanks. Mr. Hickok said parking and circulation will be modified on the site to allow for the construction of the gas station, and additional landscaping will be installed to provide screening and visual interest. Motor vehicle fuel dispensing services are a permitted special use in a C-3 zoning district. Sam's Club has been interested in constructing this gas station on their property for several years; however the City's parking code standards would not allow them to eliminate parking stalls for the construction of this use. Mr. Hickok said in 2005, the City approved a te�t amendment to reduce the parking code standards for commercial properties from 1 stall for every 150 sq. ft. to one stall for every 250 sq. ft. of building area. As a result of this change, Sam's Club is now able to use some of their large parking lot to accommodate the construction of the gas station and still be compliant with code parking requirements. The proposed canopy and kiosk building meet all setback requirements and lot coverage requirements will also be met. The new kiosk building will be constructed of CMU (concrete masonry unit) painted block, which will match and be compatible with the e�terior of the existing Sam's Club building. Mr. Hickok said the Planning Commission unanimously recommended approval of SP #12-03 at their June 20, 2012, meeting with five stipulations. The petitioner was unable to attend the Planning Commission meeting because his flight from Tennessee was delayed. He does however agree to all the stipulations. Staff recommends concurrence with the Planning Commission with the following Stipulations: 1. The petitioner shall obtain all necessary permits prior to construction. 2. The petitioner shall ensure that all lighting on the property is shielded and downcast, so as to not e�end over the property line or create glare. 3. Signs permits shall be submitted and approved prior to installation on the new canopy. 4. A code compliant landscape plan shall be reviewed and approved prior to issuance of a building permit. 5. City Engineering staff to review and approve grading, drainage, and utility plan prior to issuance of a building permit. Councilmember Saefke noted the area of this project traditionally has a high water table; he asked if soil testing has been done. FRIDLEY CITY COUNCIL MEETING OF JULY 9, 2012 PAGE 26 Brook Schields, Carlson Engineers, said there is solid remediation for 8 feet all around the canopy area, kiosk and gas tanks. Councilmember Bolkcom asked if on Stipulation #4, related to the landscape plan, they were talking about the landscape around the gas station or the entire area. Mr. Hickok answered it is his understanding to look at the entire site to make sure it meets standards. We think the additional landscape discussed will enhance the site further. Councilmember Bolkcom asked what it meant by "code compliant." Mr. Hickok said that every project requires a certain amount of landscaping. When there is a new addition, staff makes sure the project is still in compliance in terms of the number of trees/shrubs etc. This is a reminder to look at the overall site and not just the new section. Councilmember Bolkcom asked if Mr. Schields is aware of the stipulations and agrees. Mr. Shields replied yes. Councilmember Bolkcom asked if they are aware the City does not like things stacked around the gas station. Mr. Hickok said it is staffs' understanding their operation of fuel sales is different than a standard convenience store. The main product line is sold inside the store and the gas station will have gas pumps and areas to fill the vehicle. There will not be any parking in this area to go inside either. Councilmember Varichak asked if staff had heard anything from neighboring businesses. Mr. Hickok replied staff sent out notices and no comments came back Sam's Club is very large and set back from the property line which is probably why we have not heard from anyone. Councilmember Bolkcom asked if there was a plan to reduce the number of parking spaces and allocate more green space. Mr. Hickok said they are putting the facility in an impervious parking area. No modifications have been made regarding parking. Staff would never discourage them to take out parking in exchange for green space. If they have additional parking that does not get used, it would be nice to beef up the landscape. MOTION by Councilmember Bolkcom to adopt Resolution No. 2012-45. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF JULY 9, 2012 PAGE 27 2. Resolution Approving an Agreement with Anoka County for State Health Improvement Program Grant Councilmember Bolkcom asked on page 9, related to hours, explain what it means. Scott Hickok, Community Development Director, said it is defined in the budget how much time it would take to accomplish the tasks that are in this program. Staff evaluated different ways to do this and it would take 700 intern staff hours to get to the value of $10,486. The other hourly rate is the current amount of time invested at a lower rate. Staff is waiting for Council's approval. There will be a lower rate for some work and an increased rate for the final 700 hours of the intern's time. Councilmember Bolkcom thought the map printing fee of $7,000 seemed high. Mr. Hickok said the bike walk plan maps will be printed and distributed to residents. The maps will include information on how to do 60 minutes of exercise daily. Councilmember Bolkcom asked if this information is available on line. Mr. Hickok answered yes. Councilmember Bolkcom stated that the listed timeline is aggressive. She asked if the project could happen that fast. Mr. Hickok answered yes. Mayor Lund noted on page 6, second to last paragraph, the date should be June 30, 2013. MOTION by Councilmember Bolkcom to adopt Resolution No. 2012-39. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 3. Resolution Approving Plans and Ordering Advertisement for Bids: Main Street Sidewalk Project No. ST2011-22. Councilmember Bolkcom asked if it was okay to approve this resolution with no MnDOT approval. Jim Kosluchar, Public Works Director, answered he expects MnDOT to approve the project in the ne�t week or two. Councilmember Bolkcom noted that the resolution has a date in there. Mr. Kosluchar said he would direct staff to put a bid date in of August. FRIDLEY CITY COUNCIL MEETING OF JULY 9, 2012 PAGE 28 Darcy Erickson, City Attorney, said the matter would have to come back to City Council. Councilmember Bolkcom noted that the project has changed from the book and asked if staff had conversations with businesses along the bike walkway and if their concerns were addressed. Mr. Kosluchar answered that there were two issues; the safety of the crossing and visibility and whether it was safe for pedestrians and both businesses. The other concern was parking, and staff did not intend to address that issue. MOTION by Councilmember Bolkcom to adopt Resolution No. 2012-40. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY MOTION by Councilmember Bolkcom to insert the map that was given to Council on page 12 and to change #1 to read Interstate 694 to 61s`Avenue. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY 4. Resolution Appointing Representation to the Mississippi Watershed Management Organization Board of Commissioners. MOTION by Councilmember Bolkcom to adopt Resolution 2012-41. Seconded by Councilmember Varichak. UPON A VOICE VOTE, MAYOR LUND, COUNCILMEMBER BARNETTE, COUNCILMEMBER VARICHAK AND COUNCILMEMBER BOLKCOM VOTING AYE, AND COUNCILMEMBER SAEFKE ABSTAINING FROM VOTING, MAYOR LUND DECLARED THE MOTION CARRIED ON A 4 TO 0 VOTE WITH ONE ABSTAINING. 5. Resolution Authorizing the Fridley Fire Department to Participate in Submitting a Proposal to the Minnesota Department of Public Safety to become a State Hazardous Material chemical Assessment Team. Councilmember Bolkcom asked with the Fire Department's shortage of firefighters, if this would have an impact on the department. William Burns, City Manager, said this is talking about one person who has been doing this for quite a long time. Councilmember Bolkcom asked if the time would be reimbursed. Dr. Burns answered yes; at an hourly rate. FRIDLEY CITY COUNCIL MEETING OF JULY 9, 2012 PAGE 29 MOTION by Councilmember Bolkcom to adopt Resolution No. 2012-42. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 13. Informal Status Report. Councilmember Bolkcom congratulated the appointed Commissioners, there were a lot of good candidates and she hopes they continue to apply for future appointments that open. Mayor Lund sent out Council's condolences in memory of Char Fitzpatrick. ADJOURN: MOTION by Councilmember Barnette to adjourn. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 11:05 P.M. Respectfully Submitted, Krista Monsrud Scott J. Lund Recording Secretary Mayor