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10/13/2003 - 00026301CITY OF FRIDLEY CITY COUNCIL MEETING MINUTES OCTOBER 13, 2003 The regular meeting of the Fridley City Council was called to order by Mayor Lund at 7:30 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, and Councilmember Billings. MEMBERS ABSENT: Councilmember Wolfe and Councilmember Bolkcom. PRESENTATION: Paul McCarron and Jeffrey Dahler provided an update on the Northstar Commuter Rail Proj ect. APPROVAL OF PROPOSED CONSENT AGENDA: APPROVAL OF MINUTES: City Council Meeting of October 13, 2003 APPROVED. NEW BUSINESS: 1. RECEIVE THE MINUTES OF THE PLANNING COMMISSION MEETING OF OCTOBER 1, 2003. RECEIVED. 2. SPECIAL USE PERMIT REQUEST, SP #03-15, BY DAN SEEKAMP, TO ALLOW THE CONSTRUCTION OF A SECOND ACCESSORY STRUCTURE, GENERALLY LOCATED AT 7055 EAST RIVER ROAD N.E. (WARD 3). Dr. William Burns, City Manager, said the petitioner wished to build a 480 square foot accessory building in the rear yard of his property. The building would be used for FRIDLEY CITY COUNCIL MEETING OF OCTOBER 13, 2003 PAGE 2 storage. The Planning Commission approved the request subject to four stipulations. Staff recommended Council's approval with four stipulations. APPROVED SPECIAL USE PERMIT REQUEST, SP #03-15, BY DAN SEEKAMP, WITH THE FOLLOWING STIPULATIONS: 1. PETITIONER SHALL INSTALL CODE REQUIRED HARD SURFACE DRIVEWAY WITHIN 2 MONTHS OF ISSUANCE OF A BUILDING PERMIT; 2. PETITIONER SHALL OBTAIN ALL NECESSARY BUILDING PERMITS PRIOR TO CONSTRUCTION; 3. THE STRUCTURE SHALL NOT BE USED FOR A HOME OCCUPATION OR LIVING AREA; AND 4. THE ACCESSORY STRUCTURE SHALL BE ARCHITECTURALLY COMPATIBLE WITH EXISTING HOME AND FINISHED WITH A COMPLEMENTARY SIDING AND COLOR SCHEME. 3. VARIANCE REQUEST, VAR #03-16, BY BOB'S PRODUCE RANCH, TO REDUCE THE SETBACK OF A FREE-STANDING SIGN, GENERALLY LOCATED AT 7620 UNIVERSITY AVENUE N.E. (WARD 3). Dr. William Burns, City Manager, said the petitioner wished to construct a two-sided electronic sign with 80 square feet of area. The proposed setback variances were from 10 feet to 5 feet from the property line and from 10 feet to 4 feet from the driveway. Staff recommended Council's approval subject to five stipulations. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 4. RESOLUTION NO. 52-2003 CALLING FOR A PUBLIC HEARING ON THE MODIFICATION OF THE REDEVELOPMENT PLAN FOR REDEVELOP- MENT PROJECT NO. 1 AND THE TAX INCREMENT FINANCING DISTRICT NOS. 1, 2, 3, 6, 7, 9, 11, 12, 13, 14, 16 AND 17. Dr. William Burns, City Manager, said the changes consisted of budget modifications to reflect changes in the tax increment law that were enacted in 2001 and 2003. The changes in 2001 reduced the class rates for commercial industrial property which reduced revenue from many tax increment districts by 40 percent. The 2003 changes modified the definition of original tax rates for districts created prior to 1988. The impact of this change was to raise the revenue received for those districts. While this was more of an administrative matter, state law required public hearings by the City Council and the Housing and Redevelopment Authority before either body could amend tax increment financing plan budgets. The proposed hearing date was December 8, 2003. Staff recommended Council's approval. ADOPTED RESOLUTION NO. 52-2003. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 13, 2003 PAGE 3 5. APPROVE AGREEMENT WITH WSB & ASSOCIATES, INC., FOR CONSTRUCTION SERVICES FOR THE UNIVERSITY AVENUE POND PROJECT. Dr. William Burns, City Manager, said the services included construction administration, surveying and inspection. The cost of the services was for an amount up to $14,500. These services are associated with the construction of a storm water detention pond on the east side of University Avenue near the Northtown park and ride site. The project and construction services are funded by the Clean Water Partnership grant that Fridley, Blaine, Coon Rapids and Spring Lake Park received for water quality improvements at the Springbrook Nature Center. Staff recommended Council's approval. APPROVED AGREEMENT WITH WSB & ASSOCIATES, INC. 6. RECEIVE BIDS AND AWARD CONTRACT FOR THE UNIVERSITY AVENUE STORM WATER TREATMENT POND PROJECT. Dr. William Burns, City Manager, said bids were opened on October 3, 2003. The low bid in the amount of $128,162.73 was submitted by Park Construction. The pond will be constructed on the southeast quadrant of the intersection of University Avenue and g5tn Avenue, upstream from the Springbrook Nature Center, as part of the watershed improvement grant project. The cost of the project will be grant-funded. Staff recommended Council's approval. RECEIVED AGREEMENTS AND AWARDED THE CONTRACT FOR THE UNIVERSITY AVENUE STORM WATER TREATMENT POND PROJECT TO PARK CONSTRUCTION. 7. RESOLUTION NO. 53-2003 DESIGNATING TIME AND NUMBER OF COUNCIL MEETINGS FOR 2004. ADOPTED RESOLUTION NO. 53-2003. 8. CLAIMS. AUTHORIZED PAYMENT OF CLAIM NOS. 113605 THROUGH 113827. 9. LICENSES. APPROVED LICENSES AS SUBMITTED AND AS ON FILE. 10. ESTIMATES. APPROVED THE FOLLOWING ESTIMATES: FRIDLEY CITY COUNCIL MEETING OF OCTOBER 13, 2003 PAGE 4 Hardrives Inc. 14475 Quiram Drive Rogers, MN 55374-9461 2003 Street Improvement Marian Hills Project No. ST 2003 — 1 EstimateNo. 5 ................................................................................... $6,030.17 Creative Curb Contractors 64358 — 375th Street Watkins, MN 55389 2003 Miscellaneous Concrete Repair Proj ect No. 3 51 EstimateNo. 4 ................................................................................... $9,397.59 APPROVAL OF PROPOSED CONSENT AGENDA: Councilmember Billings asked to remove Item 3 and place it after Open Forum on the regular agenda. Mr. Tim Byrne, 6053 Woody Lane N.E., asked if Item 4 referred to Gateway West. Mr. Scott Hickok, Community Development Director, said it was not related to Gateway West but the tax increment financing districts that had been created and the need to modify the redevelopment plan related to those districts. Mr. Byrne asked if the HRA would review the matter before the City Council. Mr. Hickok said the HRA had been apprised of this matter. Essentially the actions were before Council and would come back in the form of a public hearing. Councilmember Billings said the districts that were listed were existing districts already in place but changes in wording and legal changes to the districts were being made to satisfy the new legislative requirements. Mr. Hickok agreed. No other persons in the audience spoke regarding the consent agenda items. MOTION by Councilmember Barnette to approve the proposed consent agenda with the removal of Item No. 3. Seconded by Councilmember Billings. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 13, 2003 PAGE 5 ADOPTION OF AGENDA: MOTION by Councilmember Billings to adopt with agenda with the addition of Item 3. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. OPEN FORUM: Ms. Donna Bahls, 7514 Alden Way N.E., invited everyone to the first annual spaghetti dinner and silent auction on Saturday, November 15, 2003, at St. Philip's Lutheran Church. Tickets were $10.00 per person and the proceeds from the event would go toward the Save Springbrook Fund. Mr. Tim Byrne, 6053 Woody Lane N.E., spoke about zoning changes to a neighborhood in the eastern portion of the City. He submitted a letter that addressed his concerns. He became aware of plans for a major redevelopment project near the intersection of Mississippi and Central Avenue near Sandee's Restaurant. He said that none of the neighbors knew of the development. A public hearing scheduled for October 1, 2003, before the Planning Commission, but it was delayed because there were problems at the County level. Councilmember Billings asked what the procedure was for notification about a project, who was notified, and the timeframe. Mr. Hickok, Community Development Director, said the west side of the project was moving quicker than the east side. The petitioner did submit an application but it was incomplete because of two County issues. The items were on the agenda for an upcoming Planning Commission meeting and would then go before the City Council. When the hearing was set properties within 350 feet of the affected property would be notified. Councilmember Barnette asked if some residents in the area had been approached by the developer and asked if they would be willing to sell their homes. Mr. Hickok said they had spoken with some residents. NEW BUSINESS: 3. VARIANCE REQUEST, VAR #03-16, BY BOB'S PRODUCE RANCH, TO REDUCE THE SETBACK OF A FREE-STANDING SIGN, GENERALLY LOCATED AT 7620 UNIVERSITY AVENUE N.E. (WARD 3). Councilmember Billings said the Appeals Commission recommended denial of this item. He asked what had changed. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 13, 2003 PAGE 6 Mr. Scott Hickok, Community Development Director, said that changes were made in the application. The petitioner reduced the sign to a two-sided sign. They also determined that there was not another location for the sign on the property and that there was a hardship. He stated that paper signs would also no longer be allowed at the site. MOTION by Councilmember Billings to approve Variance Request, VAR #03-16, by Bob's Produce Ranch to reduce the setback of a free-standing sign from a property line from 10' to 5' and from a driveway from 10' to 4' subject to the following five stipulations: 1. All the temporary signs located on the property shall be removed immediately and this property shall be subject to the sign code standards for temporary signs; 2. Sign to be reduced to a 2-sided sign to comply with current sign code requirements; 3. No additional pylon signs are allowed on this site; 4. The City is relieved from all liability caused by the sign being located in its proposed position, only 5 feet from the property line and 4 feet from a driveway; 5. This variance shall remain in effect unless any of the following occur: A. The sign is altered in any way, except for routine maintenance and change of inessages which makes the sign less in compliance with requirements; B. The supporting structure of the sign was replaced or remodeled; C. The face of the sign is replaced or remodeled; D. The sign becomes dilapidated or damaged and the cost of bringing it into compliance is more than 50 percent of the value of the sign, at which time all of the sign and its structure shall be removed; E. Notwithstanding subparagraph A above, upon the change of the name of the business being displayed on this sign. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED. PUBLIC HEARINGS: 11. CONSIDERATION OF THE ASSESSMENT FOR THE 2003 NUISANCE ABATEMENT PROJECT. MOTION by Councilmember Billings to waive the reading of the public hearing notice and open the public hearing. Seconded by Councilmember Barnette UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Rick Pribyl, Finance Director, said this item was an annual assessment for properties upon which the City had expended resources to clean up in accordance with the City Code. The first property was located at 6211 Sunrise Drive and a tree was removed. The cost of the tree removal was $1,164.85. The second property was located at 157 Hartman Circle which had a deck removed and disposed of. The cost of removal was $2,862.34. The third property was located at 5750 Madison Avenue. Debris was removed from the yard. The cost of removal was $2,249.81. Each property would be assessed over a one-year period of time at an interest rate of 6.5 percent. He said there was a resolution on the agenda, but since it did not have the required 4/5 vote by the City Council, he recommended that it be tabled. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 13, 2003 PAGE 7 MOTION by Councilmember Billings to receive a letter from Mr. David Ulrich, owner of the property at 157 Hartman Circle, and his attorney, Christopher J. Dietzen, Larkin, Hoffman, Daly & Lindgren, Ltd. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Christopher Dietzen said he was the attorney for Mr. David Ulrich and Ms. Melaina Grover, the owners of the property at 157 Hartman Circle. He stated his clients were opposed to the special assessment because the City failed to follow the statutory procedure in the removal of the deck It was wrongful, improper and in violation of his clients' constitutional rights. Under the special assessments law, there was no special benefit and no increase in the property value by an amount equal to or greater than the assessment. In fact, by wrongfully removing the deck, it reduced the value and resulted in a taking without just compensation. When his client bought the property in 1974 there was a deck there. He said there had always been a deck and the City knew there was a deck there. Mr. Ulrich repaired and rebuilt the structure around 1996. There was never a time when there was no deck there. It was a legal non-conforming use in 1974. Mr. Dietzen said that in September, 2002, the City went on Mr. Ulrich's property without consent. In October, 2002, the City sent a letter saying the deck was illegal and it needed to be removed or the City would commence the process to abate the violation. On November 8, 2003, Mr. Ulrich brought in an application for a variance and met with City staff. He asked if there was anything else he needed to fill out. He completed the application form, drew a picture of the lot and the approximate dimensions and paid the fee. At that time, he thought the application was complete. On November 14, the City said the application was incomplete. Under Minnesota Chapter 1599 if the City did not act to deny it within 60 days, it was approved. Instead of acting on a variance, the City said he had not sent an application by November 8. The City did not hold a hearing on the abatement and did not send Mr. Ulrich notice of any such proceeding. Instead, without Mr. Ulrich's consent, they removed the deck. Mr. Dietzen said the City's first violation was that under its special assessment proceeding, the City had an obligation to comply with Minnesota Chapter 429 and in particular needed to show that there was an improvement, a special benefit, and that there was an increase in value with the removal and the City did not. Under the City's ordinance, it was necessary to go through a procedure to abate a nuisance, and they did not do that. The second violation was that the City did not comply with the most minimum procedural requirements such as identifying the area to be assessed and identifying the improvement. The City removed the deck without complying with the law. The deck had been there as a non-conforming use for over 30 years and under Minnesota Statute 462, it had the right to remain. Third, the variance application was timely and complete, and because the City failed to act on it, it was deemed approved. Beyond the statutory procedural problems and the improper removal of the deck, the City could show no special benefit. The City had to show that the property value would increase in an amount equal to or greater than the proposed assessment of $3,800. He said they had asked for but not seen an appraisal from the City. For those reasons they opposed the special assessment. The law was clear that there was no legal basis for the City to adopt a special assessment. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 13, 2003 PAGE 8 Councilmember Billings asked if all the facts relative to the construction and use of the deck had been presented in terms of timelines and non-conforming use. He asked if Mr. Dietzen had received a response to his letter of May 27, 2003. Mr. Dietzen said he had. Councilmember Billings asked if more than 50 percent of the deck had been removed in the process of reconstructing it. Mr. Dietzen said not at any one point in time. Councilmember Billings asked if his client had received a building permit for the construction of the deck prior to beginning the reconstruction on the deck. Mr. Dietzen said that according to Mr. Knaak, there was no building permit applied for in the timeframe Councilmember Billings talked about. He said that because it was a legal non- conforming use, there was no obligation to get a building permit to repair and maintain it. Councilmember Billings asked if the size of the deck increased in any way, shape or fashion. Mr. Dietzen said there were some changes in the nature of the structure, but it had always been in the same location. Originally in 1974 there were stairways, a patio platform structure and footings. In 1975, a larger deck structure was built over the footings and made part of the patio platform. In 1996 or 1997 the deck had deteriorated and to remedy it, Mr. Ulrich repaired and rebuilt the structure. Councilmember Billings asked if in the process of repairing and rebuilding the structure, it was done in accordance with the building code requirements for the City. Mr. Dietzen said he did not know. Councilmember Billings said if they had a building permit, there would be an answer because the building inspector would have been able to approve the plans and ascertain whether it was safe. He said he felt there was more to the story. Mr. Dietzen said that for the nearly 30 years the deck had been in place, no one from the City told him the deck was unsafe and that it was not built in accordance with code. He hired a contractor who was aware of the code and built it in accordance with the code. He said City staff observed the work. Councilmember Billings asked Attorney Knaak if what City staff did was proper. Attorney Fritz Knaak, City Attorney, said it was. He said he provided an answer to Mr. Dietzen's letter and asked that it be entered into the record. He said the abatement procedure did not require that there be additional value established as a result of a service to a property to abate a nuisance. What it provided was that the City would get its costs reimbursed plus an additional FRIDLEY CITY COUNCIL MEETING OF OCTOBER 13, 2003 PAGE 9 25 percent to cover additional administrative costs associated with the abatement. It would be sent to the County as though it was a special assessment and would be added to the property tax. There was no separate requirement. He stated Statute 429 did provide an option to appeal the abatement. He said action could not be taken on this matter at this meeting. It would have to be continued because they did not have the requisite number of votes. Mayor Lund asked if Mr. Hickok felt there was any violation or any lack of due process. Mr. Scott Hickok, Community Development Director, said he did not. Mayor Lund asked the City Attorney if the City was within its rights to look at the abatement procedure. Mr. Knaak, said they were but suggested that they should receive his letter into the record. MOTION by Councilmember Billings to receive the letter dated June 23, 2003, from Mr. Frederic W. Knaak to Mr. Christopher Dietzen. He said it was a five-page letter with two facsimile cover sheets. Seconded by Councilmember Barnette. Mr. Dietzen objected and said it was not proper under Statute 429 which was what governed this procedure. He said 429.061 set forth the procedure that should be followed. Their view was that the proceedings had not been fair and the record was not complete and the letter should not be part of the record. Mr. Knaak said the objection could be noted in the record. He said it responded to the letter that was introduced into evidence and the City had the right to have rebuttal evidence in the record. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Dietzen asked that the public hearing be continued and they be given an opportunity to further respond to Mr. Knaak's letter. Attorney Knaak said that would be fair and appropriate. He advised to continue the hearing, preferably for a date certain. Councilmember Billings asked Mr. Dietzen if he had received the letter from Mr. Knaak dated June 23, 2003. Mr. Dietzen said he had. Councilmember Billings said that it was more than a couple of weeks ago, and he thought that if there was something in that letter Mr. Dietzen had wanted to respond to, he would have responded by now. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 13, 2003 PAGE 10 Mr. Dietzen said that now that he knew the letter from the City Attorney was going into the record, he would like an opportunity to respond. MOTION by Mayor Lund to continue the public hearing until October 27, 2003. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 12. CONSIDERATION OF THE ASSESSMENT FOR STREET IMPROVEMENT PROJECT NO. ST. 2002 — 1. MOTION by Councilmember Barnette to waive the reading of the public hearing notice and open the public hearing. Seconded by Councilmember Billings. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Pribyl, Finance Director, said the public hearing was for the Street Improvement Project 2002-1, which was in the Edgewater Garden neighborhood. The total assessed costs in this project were $109,897.52 and 94 properties were improved. It was assessed at $12.90 per front foot. The assessment was over a period of ten years at 6'/z percent interest. There was a resolution that for this matter that should be tabled until the ne�t Council meeting. MOTION by Councilmember Billings to receive a memorandum dated October 13, 2003, from Donald Holien and Mary ReVoir (Holien). Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. John Toedter, 38 — 66th Way N.E., said he received very little information from the City about the assessment, but after speaking with Mr. Pribyl realized the information was going to his former place of residence in Roseville. He was concerned though that there was very little contact with the public on the reasons for the assessment and the figures that were used. Councilmember Billings asked when he purchased the property. Mr. Toedter said 1'/z years ago. Councilmember Billings said that approximately 2 years before a street project was started, staff prepared a matrix of everyone who was shown as the property owners of record. Notices were mailed out about the project. He said there was probably no tracking mechanism for changes in property ownership while the process was going on. Mr. Jon Haukaas, Public Works Director, said the for the 2002 street improvement project, the public hearings were held around November of 2001. That was the time that a property-specific FRIDLEY CITY COUNCIL MEETING OF OCTOBER 13, 2003 PAGE 11 letter was sent that discussed the proposed assessment, and at that time, it became a pending assessment. From that time through the construction of the project, there were no property- specific letters sent. Construction notices were typically handed out on the project. It was not until the time of the final assessment that the ne�t property-specific notice was sent out. Mr. Pribyl said when the parcel-specific mailing was done regarding the final assessment, they made sure they had the fee owners who were listed on the County's tax records. Mayor Lund asked if that was the first notice Mr. Toedter received. Mr. Toedter said he was aware when he purchased the property that the former owners had paid off an assessment. The impression he had at that time was that the assessment was for the street improvement program. Councilmember Billings asked if there was any other project in the area of 66th Way within the last five to seven years. Mr. Haukaas said there was an ongoing assessment for Locke Lake. Councilmember Billings said that the assessment paid at the closing was for something else or it was possible if there was a pending assessment at the time, that there may have been some money escrowed waiting for this assessment and once it did, the money could be released. He asked if staff would conduct some research as to how they came up with the Roseville address and let Mr. Toedter know. He said Mr. Toedter was being charged only for the curb and gutter that was in front of his house. Attorney Fritz Knaak, City Attorney, said the statute expressly stated that the fact that an individual did not receive a mailed notice did not in any way modify or change the validity of the underlying notice of proceedings. He said the notice that mattered was the notice that was published. Mr. Haukaas asked if they should respond to the letter on 47 Rice Creek Way. Councilmember Billings said they received a letter from the property owners of 47 Rice Creek Way that indicated that they objected to the assessment and to paying for the assessment because during the construction project, they had some water damage. It appeared from their letter that the contractor covered up a catch basin and the water had no where to go other than in their yard and in their home. They objected to paying for any assessment until such time as they were compensated for their damages either by the contractor or by the City. Mayor Lund said there were two issues. They still owed the assessment and the issue regarding damages should be taken care of. Mr. Haukaas said the incident referred to was a 1'/z-inch heavy, intense quick storm. The catch basins were not filled. They had protection around them to prevent sediment from the project from going into the river. With that quick of a duration storm, water would back up quickly. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 13, 2003 PAGE 12 They did send someone to the home after the homeowners canned and a hole was cut through the protection to try to drain the water. They did meet with the homeowner and saw that there was some water damage and mud stains on the carpet. At that time they offered to have Service Master clean the area, and the offer was refused. The letter claimed that the City knew there was a problem because two new sewers with backup systems were put in. He said they were updating the existing storm sewer system. MOTION by Councilmember Billings to close the public hearing. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. NEW BUSINESS: 13. RESOLUTION ADOPTING THE ASSESSMENT FOR THE 2003 NUISANCE ABATEMENT. MOTION by Mayor Lund to table this resolution until the Council meeting on October 27, 2003. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 14. RESOLUTION ADOPTING THE ASSESSMENT FOR THE 2002 STREET IMPROVEMENT PROJECT NO. ST. 2002 – 1. MOTION by Mayor Lund to table this resolution until the Council meeting on October 27, 2003. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 15. CONSIDERATION OF A HOTEL/MOTEL LICENSE REQUEST BY WAYNE RIXMANN FOR LIVINN SUITES, GENERALLY LOCATED AT 5201 CENTRAL AVENUE N.E. (WARD 1). Mr. David Sallman, Public Safety Director, said when a business required licensing, an application was submitted and reviewed by various departments in the City. During their investigation, they discovered the licensee had a LivINN Suites in Maplewood. They received the police calls for the nine months the hotel had been a LivINN and the nine months prior, when the hotel was a Super 8 Motel. During the nine months prior, there were thirty-one calls for service. Most of those calls were service oriented—opening car doors and medicals. In the nine months after it became LivINN Suites, there were 163 calls for service; 96 of which would fall under the category of crime, including drugs, assaults, disorderly conduct calls, etc. He said staff recommended denial of the license. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 13, 2003 PAGE 13 Councilmember Billings asked when the applicant started doing business. Mr. Sallman said he thought the sign had been changed around July 1. Councilmember Billings asked when they first applied for a license. Mr. Pribyl said the date on the license application was August 27. Mr. Timothy Welch of Leonard, Street & Deinard, said the property was purchased at the end of July. In the process, it was determined that a license was necessary. One of the principals of LivINN Suites had been in the multi-family rental business for 30 years and had not experienced the problems he had at the Fridley location. He said they prepared a program they thought would fix the problem, but it would take some time for the changes to take place. He said a couple of weeks ago, they started conducting criminal and credit checks on long-term residents who stay for more than one week They require payment by credit card with a photograph identification. A policy has been instituted of two persons per room. He said they realized that there would be some instances of emergencies in which the policy could not be followed. In the Fridley LivINN Suites they installed 22 video cameras that monitor the property. The cameras are monitored twenty-four hours a day at the main desk and then monitored during the day and otherwise intermittently at the headquarters of Rixmann Companies in Burnsville. He stated that there were about 100 units. Twenty percent of the units were reserved for overnight guests and eighty percent for weekly and e�tended stay guests. They have instituted a policy with respect to overnight guests that no more than 10 units can be blocked out. He said they were committed to working with the Police Department. They hired a professional security service and they are on 24-hour call. On weekends they do walk-throughs. They have been instructed to work with the Director of Public Safety and his department in determining when they should contact the Police Department and what they could handle themselves. He said he thought the screening would make the largest difference during the ne�t couple of months. Councilmember Barnette asked if the restaurant was open. Mr. Welch said it was used as a banquet facility. It was not a restaurant. Councilmember Billings asked if they closed on the property in late July. Mr. Welch said they did. Councilmember Billings asked when the new LivINN Suites sign went up. Mr. Welch said they closed on the 21st of July, so it would have been in the following two weeks. Councilmember Billings asked if they had licenses in Maplewood and Burnsville. Mr. Welch said they had a license in Maplewood. Burnsville did not require a license. Councilmember Billings asked why they did not have all the approvals in place. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 13, 2003 PAGE 14 Mr. Welch said it should have been handled as part of the closing, but it was overlooked. He took responsibility for that. Councilmember Billings asked about the problems they were currently having in Maplewood and how many of the items addressed in the memo of October 10 had actually been initiated in Maplewood. Mr. Welch said all of the items. Councilmember Billings asked when they were initiated in Maplewood. Mr. Welch said at varying times. The security service started last week The camera systems had been up a couple of weeks. Over the past couple of weeks they had commenced with the criminal and credit checks. Councilmember Billings asked what kind of police calls they had during the last two weeks. Mr. Welch said he did not have a list. Councilmember Billings asked if Mr. Welch or someone from management could give a candid evaluation that they were significantly less, slightly less, significantly more, slightly more or about the same as they were before. Mr. Welch said they were slightly less because they had a population who rented long-term. Councilmember Billings said they indicated they hired a security company that had a 15 minute or less response time. He said the Fridley Police Department had a response time of under 5 minutes and even then a situation might be out of control. He asked if it was a lot of responsibility for the desk clerk or check in person to have. Mr. Welch said it was not a case of simply trying to eliminate the appearance of their problems by avoiding police calls. To the e�tent that an incident involved something that was reportable or investigatable, their first call should be to the police. The security company should be able to handle a number of the more nuisance style calls. Councilmember Billings said he would like to see some type of written policy statement that clearly defined when the police would be called and when the security service would be called. He would like to see stipulations directly related to the license. The City would issue a license for six months and if at the end of the six months everything was reasonable, a license could be issued. If things were not reasonable, they would have to be evaluated and the license would have to be suspended or additional stipulations provided. Mr. Welch said that was reasonable. He said Mr. Rixmann intended to have the properties under control and was more than agreeable to having the stipulations they presented in place over the ne�t six months or one year. If it turned out that they eliminated the problem, they would come back at the ne�t licensing and discuss whether or not some of them might be eliminated. In FRIDLEY CITY COUNCIL MEETING OF OCTOBER 13, 2003 PAGE 15 terms of a policy statement or direction to their desk clerks, they would be more than willing to draft some language. He said it was important to have an agreement about the guidelines. Councilmember Billings asked Mr. Sallman for his response. Mr. Sallman asked if they would be issued a license for six months or if it would be held for six months. Councilmember Billings said it was up to the Council, but he would suggest that some type of temporary license be issued, whether it was a one-year license with a review at six months or a temporary license and that Mr. Sallman and the property owners come up with some stipulations. Mr. Sallman said he would have no problem in working with them. Mayor Lund said that the only way he would consider a license was if they had night-time security on-site at least during the interim period with a review after that. He was also concerned that this was not the first time they purchased this type of property and a license was required in at least one of the other communities. He said the City only found out about the change in business because the sign changed. Councilmember Barnette asked who their actual clientele was and if they ever got involved with a county in placing a family or individuals at the hotel for a given period of time. He also asked if the City could grant a temporary license for four months. Mr. Welch said they have committed to doing the stipulations. With respect to the night-time security, he suggested that they initially do it on the weekends or on Friday and Saturday nights, from about 9:00 p.m. until 3:00 a.m. With respect to whether they considered placement by County Services, he said that was not the case. In terms of the profile of the persons staying at hotel, at this point in terms of a specific profile, he could not tell them. He said everyone who stayed there would have to have and use a credit card in order to pay for the rooms. Councilmember Barnette asked the City Attorney if it was permissible to issue a temporary license. Mr. Fritz Knaak, City Attorney, said in the past when there was unusual circumstances, what the City had done with other kinds of licenses was to issue a temporary license pending a continued hearing. One option that was discussed was giving the license and having a review. He said a review was a different process and involved a different standard of proof under the City's ordinances. He said they could continue this hearing on the license for four months but authorize them to conduct business under certain stipulations. He stated that it was not a state licensure. It came under the City's ordinances and they did have some discretion in how it was enforced. They were authorized to look at business practices in other jurisdictions to reach a determination if there would be an adverse impact on the health, welfare and safety on the citizens of the City. They were entitled to an ongoing investigation or to request additional information as part of the process. It would be entirely appropriate to continue the hearing. However it was an ongoing business. It was a factor Council considered in another matter. Under those circumstances, FRIDLEY CITY COUNCIL MEETING OF OCTOBER 13, 2003 PAGE 16 rather than shut the business down, they chose to identify a finite period of time during which the review would occur and see how things went. At the end of that period of time, they could hold the hearing and determine whether to continue the matter or grant or not grant the license. He said they could continue the hearing for four months, granting a temporary license to allow them to continue to operate a hotel business subject to stipulations and conditions that the City Council wished to impose. They could suggest that there be ongoing discussions with Public Safety to reach an agreement. Councilmember Billings asked about the catering restaurant and if they were having problems with the guests at some of the functions. Mr. Welch said they instituted a maximum reservation block of ten rooms on the theory that it would make it more difficult for there to be a large influx of people. He said the Police Chief had indicated that they had never had any problems with the business in the past. Councilmember Billings said that they had not had a lot of problems in the past and wondered why they thought it was important to make a change. Mr. Welch said it was his understanding that there had been some issues over the past few weeks. Councilmember Billings said he would like to see another stipulation added that they stay current with any state and local sales taxes and/or room taxes. Mayor Lund asked if security on the premises on Friday and Saturday nights from 9:00 p.m. to 3:00 a.m. was adequate. Mr. Sallman said the best way to determine that was after the fact. He trusted they knew how to run a successful motel operation. Whenever this was reviewed again, if the Police Department had the same information about the operation in Maplewood and said it happened in Fridley, too, then whatever they proposed did not work out very well. That was how he preferred to judge it. Councilmember Billings asked Mr. Sallman if what he was saying was that the City should not be specifying to the applicant what hours they have full-time security there, but that they needed to have adequate security on the premise. If at the end of the first week they determined that they needed someone 24/7, then that was what they would have to do. Mr. Sallman said that would be his suggestion. Councilmember Billings said there needed to be a reasonable enforcement presence, like trained personnel on site. Mr. Sallman said the question was when they would call the police. He said the City's position had always been that if a crime had been committed they needed to hear about it immediately, not three days later. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 13, 2003 PAGE 17 Mayor Lund said that instead of defining the hours of security, which to him was very important, he would let them make the determination. Mr. Welch said the direction from his client was that he wanted this type of behavior eliminated at the property. To the e�tent that a time period was decided, they could tell Council what they were going to do, if it made sense to Council to let them do whatever they needed to in order to make it work. He said they would be calling the Police Department and had been given the name of someone to talk to. It was important to them that the Police handle police matters. It was really a matter of getting the right profiled residents. Councilmember Billings said they were not talking about a particular class of people as much as they were talking about behavioral issues. There was a discussion between Councilmember Billings and Councilmember Barnette on the temporary date for the license. It was determined that March 29 was an acceptable date. Councilmember Billings said he would try to interpret the recommendation of the City Attorney correctly. They would not issue a license but request that the applicant pay the license fee and continue the matter until March 29, 2004, unless the Director of Public Safety determined that it needed to be brought back to Council sooner. Mr. Knaak said the purpose was to establish a record and to make sure 1599 was followed. It could be a statement on the record in which the applicant would agree to permit the City to continue the hearing for that period of time. Mr. Welch said it was his understanding the City would grant his client the right to continue operations until March 29 and then review the activities at the property. If they had not made significant progress in meeting the requirements of the City by that time, the City would have the right to terminate the license. Councilmember Billings said that if City staff determined sometime prior to March 29 that there was an urgent need to review the matter, the City would do that. Mr. Welch said they expected that the City had that right under any license. He said they did not see any problem going further. Councilmember Billings asked the City Attorney about the wording for the motion. Attorney Knaak said they needed to move to table consideration of the approval of the license subject to an authorization that they continue to operate in business as a hotel until March 29, at which time this would be an action item, subject further to their compliance with the stipulations already stated by correspondence and any further reasonable stipulations that were reached in any discussions they had with the Public Safety Department. Councilmember Billings asked if they needed to include language that they could be called in at any time before that date. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 13, 2003 PAGE 18 Attorney Knaak said at any time. Councilmember Billings said that the attorney for the applicant indicated that they agreed. MOTION by Councilmember Billings that the action item currently before them be tabled to March 29, 2004, subject to the two following conditions: 1. That the applicant will be permitted in the meantime to continue its business of operating a hotel, in essence being granted a temporary or provisional license; and, 2. That the operation would be subject to the stipulations that have already been stated and any other additional reasonable conditions as may be imposed after discussions with the Public Safety Department. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 16. INFORMAL STATUS REPORTS. Councilmember Barnette said that the Call on the Council cable show would be on Tuesday, October 14, at 6:00 p.m. Mayor Lund said the Springbrook Nature Center would be holding Pumpkin Night in the Park on Saturday, October 25, 2003. ADJOURNMENT: MOTION by Councilmember Barnette to adjourn the meeting. Seconded by Mayor Lund. UPON A VOICE VOTE, ALL AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING WAS ADJOURNED. Respectfully submitted, Roberta S. Collins Secretary ������ Scott J. Lund Mayor