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11/07/2005 - 00027020CITY COUNCIL MEETING CITY OF FRIDLEY NOVEMBER 7, 2005 The City Council meeting for the City of Fridley was called to order by Mayor Lund at 7:34 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-at-Large Barnette Councilmember Billings Councilmember Bolkcom MEMBERS ABSENT: Councilmember Wolfe OTHERS PRESENT: William Burns, City Manager Fritz Knaak, City Attorney Scott Hickok, Community Development Director John Berg, Fire Chief Brian Weierke, Police Captain Dave Prois, Police Sergeant APPROVAL OF PROPOSED CONSENT AGENDA: APPROVAL OF MINUTES: City Council Meeting of October 24, 2005 APPROVED. OLD BUSINESS: 1. Second Reading of an Ordinance in the City of Fridley, Minnesota, Amending the Fridley City Code to Provide a New Section 405A for the Purpose of Granting, Pursuant to Section 10 of the Fridley City Charter, a Franchise to Time Warner Cable for the Purpose of Providing Cable Services Within and for the City and its Residents; and Adopt Official Title and Summary Ordinance. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 7, 2005 PAGE 2 Dr. Burns, City Manager, stated the major terms of the agreement include a 15-year franchise; a franchise fee of 5 percent of gross revenue; bundling language which assures us that the discounts for other Time Warner services will not be any less than the discounts for cable television; provisions that gross revenues do not include bad debt; a$25,000 performance bond; and a one-time grant of $450,000 for public access cable equipment. The City has released Time Warner from their requirement that they provide a public access studio and local origination programming. Time Warner is to maintain I-Net as it is currently used. The I-Net is a connection for the District 14 buildings. Time Warner is also to provide coaxial cable between the Municipal Center and both the public works compound and the Commons Park filtration plant. We are moving from four PEG channels to three PEG channels in exchange for 20 hours per month of On Demand capacity. We also have the ability, under certain terms and conditions, to recover the fourth channel. There is a list of customer service standards based on the SEC requirements, and these include an office within ten miles of Fridley. Staff recommends that Council waive the second reading and adopt the ordinance and the summary ordinance and order publication. WAIVED THE SECOND READING OF THE ORDINANCE AND ADOPTED ORDINANCE NO. 1210 AND SUMMARY ORDINANCE NO. 12105 AND ORDERED PUBLICATION. 2. Second Reading of an Ordinance Amending Chapters 11, 602, 603 and 606 of the Fridley City Code Allowing Tournaments of Card Games of Social Skill; and Adopt Official Title and Summary Ordinance. Dr. Burns, City Manager, stated this ordinance allows tournaments of card games of social skill in places serving alcoholic beverages. The first reading of the ordinance was approved on October 24, 2005. Staff recommends that Council waive the second reading and adopt the ordinance and the summary ordinance and order publication. WAIVED THE SECOND READING OF THE ORDINANCE AND ADOPTED ORDINANCE NO. 1211 AND SUMMARY ORDINANCE NO. 1211 S AND ORDERED PUBLICATION. 3. Second Reading of an Ordinance Amending Chapters 601, 602, 603 and 606 of the Fridley City Code Creating Administrative Offenses; and Adopt Official Title and Summary Ordinance. Dr. Burns, City Manager, stated this allows administrative penalties for license holders who have sold alcoholic beverages illegally to underage drinkers. Under the ordinance, penalties may be levied against license holders, as well as individual sellers. The ordinance is intended to hold FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 7, 2005 PAGE 3 license holders accountable as well as provide timely and cost-effective enforcement options. The ordinance will be administered by the City rather than the court and will provide an alternative to criminal prosecution. It will not, however, necessarily exclude criminal prosecution if that is the selective remedy or course of action for the person being charged. Council approved the first reading on October 24. Staff recommends that Council waive the second reading and adopt the ordinance and summary ordinance and order publication. WAIVED THE SECOND READING OF THE ORDINANCE AND ADOPTED ORDINANCE NO. 1212 AND SUMMARY ORDINANCE NO. 12125 AND ORDERED PUBLICATION. NEW BUSINESS: 4. First Reading of an Ordinance Amending Chapter 104 of the Fridley City Code Pertaining to Diseased Tree Removal Assessment Fees. Dr. Burns, City Manager, stated this ordinance allows the addition of administrative-related costs to assessments for diseased tree removal. The new language replaces a$25 fee with language that would allow the City to assess administrative costs. Staff recommends Council's approval. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 5. First Reading of an Ordinance Amending Chapter 220 of the Fridley City Code, Residential Rental Property Maintenance and Licensing Code, as it Pertains to Reinspection Fees. Dr. Burns, City Manager, stated a discrepancy between the fees designated in Chapter 220 and Chapter 11 was corrected by establishing the fees as those designated in Chapter 11. These fees would apply to reinspection fees, fees related to the denial of the license, and fees related to the transfer of a rental license. Staff recommends Council's approval. WAIVED THE READING AND APPROVED THE ORDINANCE ON FIRST READING. 6. Receive the Minutes from the Planning Commission Meeting of October 19, 2005. RECEIVED. 7. Adopt the 2005-2006 City of Fridley Snow Removal Plan. APPROVED. 8. Resolution in Support of an Application for a Minnesota Lawful Gambling Premise Permit for CLIMB Theater (AMF Bowling Centers, d/b/a Maple Lanes, 6310 Highway 65) (Ward 2). FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 7, 2005 PAGE 4 Dr. Burns, City Manager, stated the renewal will run from March 1, 2006, to February 28, 2008. Staff has reviewed the history of this permit holder and finds no reason not to renew. Staff recommends Council's approval. ADOPTED RESOLUTION NO. 2005-66. 9. Appointment — City Employees. APPROVED THE APPOINTMENT OF RICHARD PERRON TO THE PUBLIC SERVICES WORKER-PARKS POSITION, BRIAN BENESCH TO THE PUBLIC SERVICES WORKER-STREETS POSITION, AND NICHOLAS KNAEBLE TO THE PATROL OFFICER POSITION. 10. Claims (123853 — 124055) APPROVED. 11. Licenses. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 12. Estimates. APPROVED THE FOLLOWING ESTIMATES: Park Construction 500 — 73rd Avenue NE Fridley, MN 55432 University Pond FINAL ESTIMATE $ 6,854.50 Palda & Sons, Inc. 1462 Dayton Avenue St. Paul, MN 55104 2005 Neighborhood Street Improvement Project No. ST 2005 - 1 Estimate No. 6 $333,226.39 Councilmember Bolkcom requested that Items 4 and 11 be removed and placed on the regular agenda. MOTION by Councilmember Barnette to approve the consent agenda as presented with the removal of Items 4 and 11. Seconded by Councilmember Bolkcom. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 7, 2005 PAGE 5 UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. ADOPTION OF AGENDA: MOTION by Councilmember Bolkcom to approve the agenda with the addition of Items 4 and 11. Seconded by Councilmember Billings. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. OPEN FORUM (VISITORS): There were no comments. PUBLIC HEARINGS: 13. Consideration of an Ordinance Amending Chapter 205 of the Fridley City Code Pertaining to Front Yard and Side Yard Setbacks in the S-1, Hyde Park District (Zoning Text Amendment, ZTA #05-03, by the City of Fridley). MOTION by Councilmember Bolkcom 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 PUBLIC HEARING OPENED AT 7:48 P.M. Scott Hickok, Community Development Director, stated this is a te�t amendment for the Hyde Park neighborhood relative to front and side yard setbacks. The Gateway West projects have spurred an interest in reducing the front yard and side yard setback requirements in the Hyde Park District. As a result, staff determined it was time to modify the Hyde Park front yard setback requirements to match those of the R-1 Single Family District standards that were changed several �years back The change is proposed for the S-1 Hyde Park District, which is the area between 57t Place, south of 61st Avenue, and between Main Street and University Avenue. The proposed changes will reduce the front yard setback for new homes built from 35 feet to 25 feet. It would also allow existing homes to put front porches and other features on the front of their homes and allow a reduced side yard setback from 10 feet to 7.5 feet on both sides of the residential property. The side yard setbacks would apply to new construction only. The Planning Commission held a public hearing on this item on October 19. There was some discussion but public objection, and the Commission unanimously recommended approval. Councilmember Bolkcom said the main reason this is happening was to make the area similar to the rest of the City. Mr. Hickok replied that is correct. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 7, 2005 PAGE 6 Councilmember Bolkcom asked if it also put some of the homes that are on smaller lots in conforming status. Mr. Hickok replied that would likely be the case for a number of homes in that area. Historically, they have taken a look at zoning as it relates to the land and how it was configured and the homes there. This would allow more flexibility for homeowners and the front yard setback would be consistent with all single-family homes throughout the City. MOTION by Councilmember Bolkcom to close the public hearing. Seconded by Councilmember Billings. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE PUBLIC HEARING CLOSED AT 7:51 P.M. NEW BUSINESS: 14. First Reading of an Ordinance Amending Chapter 11 of the Fridley City Code Pertaining to Pawnshop Transaction Fees. Brian Weierke, Captain, stated the Police Department has the responsibility of regulating pawnshops within the City of Fridley. The increase in business and expansion of pawnshops in the City have made it unrealistic for one detective to spend the necessary time investigating and regulating pawnshop-related cases. They believe that to adequately address the investigation portion of the pawnshops and to provide reasonable regulation, it would easily consume the time of one full-time police officer. A more proactive approach in reasonably regulating the pawnshops would serve to better prevent other criminal activity occurring within our community. A survey of other communities shows their transaction fees range from $1 to $3 per transaction. Annual fees ranged from $210 to $10,000 per year. The 2005 CounciUCommission Survey revealed a favorable response to the proposal if the costs associated with the pawnshop investigative position could be supported. In July 2005 staff inet with representatives of both pawnshops to explain the proposed plan. Captain Weierke stated this proposal is an amendment to Chapter 11 of the City Code that pertains to fees. The amendment will increase the current transaction fee from $1.50 to $3. It will also increase the reporting/manual entry penalties from $3 to $4 per transaction. Based on the 2006 transaction estimate, they believe that the transaction fee of $3 will result in approximately $105,000, including the annual license fee, in revenue for the City of Fridley. Of that amount, $43,000 is paid to the Automated Pawn Service for their electronic monitoring service of the pawnshops. The remaining $72,000 in revenue would be used to offset the cost of the salary and benefits of a full-time investigator. The Police Department would then hire an additional licensed police officer to replace the investigator. Staff recommends the first reading of the ordinance. The second reading would be held on November 21, 2005. Councilmember Bolkcom asked if there was an increase in transactions from last year to this year. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 7, 2005 PAGE 7 Captain Weierke said with increased business and expansion of the pawnshops, transactions have risen every year. He stated the projected number for 2005 is approximately 32,000 and that was based on what they have seen through increases in the year. Councilmember Bolkcom asked what it was last year. Captain Weierke said it was 24,200 in 2004. Councilmember Bolkcom asked if he could explain what an investigator would do and why we need a fee of $3 per transaction. Dave Prois, Sergeant, said they did have a job description. First, it would be to oversee the day- to-day operations of the pawnshops, whether it is just to make sure that at opening and closing times, the reporting to the APS system is being done. They would also initiate and assist in investigations involving a pawnshop and its client. This is a general term, but to be more specific, it would deal with things like with confiscated items. When they get a police report on a burglary, for example, they enter the items into a national computer which also shows up on the APS system. If the item is at a pawn shop, they would confiscate it. According to City ordinance, they can charge whoever pawns an item that does not belong to them and issue a citation. In 2004, they had 272 cases in which they issued a confiscation letter to pawnshops. So far this year, they have had 235 cases. of just pawning items that did not belong to them. It would then generate the course that they have to issue a citation. In their records right now, because of the backlog, they only have about 30 to 40 people who have been charged. Another thing an investigator would need to do is compliance checks. According to an APS contract with the pawnshop and our own City ordinance, the Police Department has to take an item they report, find that item at the pawnshop and make sure it is described accurately on the pawn system. They also have to monitor billing problems, frequent pawners, and other minor problems. Mayor Lund asked if there were any other two businesses in the City of Fridley that would require the need for a full-time police officer. Sergeant Prois replied the APS actually gets a$1 of every transaction. At the current rate, 50 cents comes back to the City. Mayor Lund stated he just wanted to go on public record that he is just not happy with the pawnshops being in Fridley given the fact that they require a full-time police officer. He asked what the annual permit fee was for a pawnshop. Dr. Burns, City Manager, stated it was $3,000. Mayor Lund asked if the fee in other cities was anywhere from $210 to $10,000. Captain Weierke replied, that is correct. Sergeant Prois said that both of the pawnshops have been very cooperative in any of their investigations. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 7, 2005 PAGE 8 Councilmember Bolkcom said they have discussed increasing the overall license fees, and felt this was a better way because this is actually going per transaction. Mayor Lund stated he agreed and said maybe they should do both. He asked about increasing the reporting/manual entry fee. Sergeant Prois replied pursuant to the original ordinance and State law, they have to have electronic reporting. So in case the pawnshops' systems went down or were not compatible with the APS, they would being the information to the Police Department to be manually entered and they would be charged a fee Mayor Lund asked what the fee was. Captain Weierke stated it is $3. He said they want to be consistent with what other cities are doing. It has not been much of a factor for the last couple of years. Councilmember Barnette asked if the pawnshop lends $200 for a Sony item and it turns out to be stolen and is confiscated, does the pawnshop lose that $200? Sergeant Prois said they would. If the Police confiscates the item, they do count the pawnshop as a victim and ask that the court award restitution. Councilmember Barnette asked about secondhand stores. Captain Weierke said they are looking at regulating secondhand stores in the City of Fridley. They are having some problems from time to time. Brad Gunn, Leonard, Street, and Deinard, approached and stated he is an attorney representing Pawn America regarding the proposed increase in the APS transaction fees. He submitted a letter. He said he cannot permit Mayor Lund's remarks to go unanswered. Pawnshops are lawful businesses that serve a legitimate public need and they are heavily regulated. He said they are well-run, good operations. Mayor Lund replied that he mentioned they are a legitimate business. He has been in the pawnshop. It was not satisfactory as far as he was concerned and he has never been back to one. Attorney Gunn asked whether it was a Pawn America. Mayor Lund stated it was the one that was at Moore Lake at one time. Attorney Gunn stated they are proud of the job that Pawn America does working with the police and in trying to reduce crimes. Without pawnshops and without the APS system they are a part of, the Police Department's would be much more difficult. He said the City of St. Paul, which actually has seven pawnshops as opposed to the two in Fridley, has one police officer who works 50 percent of the time on pawnshop-related issues. The other 50 percent of the time he works on other issues. He said he takes exception to the comment the City of Fridley requires a full-time officer because of the existence of two pawnshops. He stated the City currently charges $1.50 FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 7, 2005 PAGE 9 per transaction for an APS fee. Of that amount the City is paying 50 cents and $1 is paid to the City of Minneapolis for administering the APS. The current proposal is to increase that $1.50 fee to $3.00 per transaction, which is a 100 percent increase of what is being charged. It is a 400 percent increase in the funds that the City would be receiving from the APS charges. They have not seen any evidence that there is any reason or rationale for a 100 or 400 percent in the APS charges. There is certainly no evidence that the number of transactions have been increasing to 100 or 400 percent or the pawnshop-related offenses have increased 100 percent or 400 percent. The City's own estimates indicate that the total revenues from the two pawnshops are in excess of $100,000 a year, including the license fees and the APS fees. There is a proposal that the City use the $72,000 they are retaining from those receipts to hire a brand new police officer. He doubts that one officer is going spend 100 percent of his or her time simply working on pawnshops when there are as many enemies in the cities as there clearly are. The City, or people within the City, are trying to have these two businesses unfairly pay for the burden of hiring a new police officer. Attorney Gunn stated there is a fundamental misunderstanding about how APS works. It was created and administered by the City of Minneapolis as a means of making it more efficient to track certain goods and pawnshop-related crimes. Cities like Fridley are free to subscribe or not to subscribe to the APS system. He thinks Fridley correctly made a decision to subscribe because it is more efficient to have all the information available rather than manually sending police officers to the different pawnshops to try and see if there are any objects that match the description of stolen goods. The point is, the City makes the decision to subscribe. He said there is possibly some justification for paying that amount to the City of Minneapolis for administering the system, but there is no justification for charging an addition amount, because the APS system actually saves the City police time. It lowers their cost to use the APS system. Attorney Gunn stated Pawn America hands out loans to members of this community who may not be as prosperous as some of us are. In some loans, in amounts as small as $15, a$3 transaction fee is a big deal for those people. It is 20 percent with the additional cost, and is something that the government requires those people to pay. It is excessive and disproportionate. Attorney Gunn said his final point, which was addressed briefly, is that the APS fees are attached only to pawnshop transactions. He thinks the City is treating pawnshops differently and unfairly compared to other city businesses, and they believe that is wrong. In summary, they object to these proposed increases. The increase is excessive and unreasonable. It has not been properly documented. They see it as a revenue measure which, under the law, means it is an unlawful tax. They think that Pawn American and Cash-N-Pawn have been singled out for differential treatment, and that is wrong. Brad Rixmann, Chief Manager for Pawn America, approached and stated he would like them to know the APS was implemented in 1994. Pawn America has been in support of sharing data with law enforcement on products that their customers bring into their stores. They have always been in support of the Automated Pawn System. Unfortunately, it has become a revenue source for municipalities. This year they have completed 19,949 pawn transactions at their Pawn America store. They have had 83 confiscations out of those 19,949 transactions, which is .4 percent. Last year it was virtually identical, the year before it was almost identical, and the year FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 7, 2005 PAGE 10 before that. He does not remember when Fridley implemented the APS, but he believes it was somewhere between four to six years ago. To date the City has confiscated about $10,000 in items in his one store. He wanted to speak for the 2,500 residents of Fridley who are his customers. At Pawn America, they do not turn down a customer who wants to sell them one compact disk They spend a lot of money to get customers into their stores, and it is very expensive to look at a$2 transaction fee on top of a compact disk that they purchase for $1. They cannot afford to lose customers, so they cannot turn those customers down. They can go to a secondhand store which is unregulated by Fridley or other municipalities and complete the same transaction and not pay those municipalities anything. Several years ago they moved their store from Moore Lake Commons to the blighted property which was formerly United Stores' corporate office. They purchased that property for just under a million dollars and put more than a million dollars into it and spent $200,000 plus on soil contamination cleanup. In addition to the APS fees that the City would like them to pay, they pay $37,000 a year in property taxes. He cannot speak for his competitors and colleagues at Cash-N-Pawn but he is sure they pay an additional $13,000 themselves. He believes they have done a tremendous job. He was unaware of the issues that the Police Department has had in their stores. In many cases he is almost sorry to be calling the Police Department when an issue arises. He knows law enforcement has responded very quickly and helped them out, but those cases are being used against them this evening. He strongly recommends and requests that they do not move on this action. Councilmember Bolkcom said she personally has nothing against pawnshops. They do serve a purpose for people. She thought she heard that the Police Department has a good working relationship with them, but every transaction takes some time. She said she was a little confused regarding his comment that he feels calling the police is now being used against them. She thought they could get into a lot more trouble if they realize something is stolen and they are ignoring it. Mr. Rixmann said they are not inclined to purchase an item because they do not believe that the person bringing the item into their store is the true owner. In many cases, they will call law enforcement. He feels that this is the only place that he can see the increase in numbers. Councilmember Bolkcom stated they are not actually just police calls, they were records related to some other City. There are so many transactions, she does not believe it is related to the number of police calls that he has had to his establishment. It is more related to how many transactions and what it takes. She thought the idea was to work together, but it does take police time. Mr. Rixmann stated the Automated Pawn System was designed to make the whole process more efficient and allow law enforcement in multiple jurisdictions to be able to access the system on transactions which occur in secondhand goods stores and pawn stores. He thinks what may happen is some municipalities choose to not subscribe to the Automated Pawn System and, because they do not subscribe to it, if they think that something is missing they call the Fridley Police Department. The Fridley Police Department, out of goodwill and in working with other jurisdictions, looks at the Automated Pawn System for whatever municipality. Other municipalities can certainly subscribe to the Automated Pawn System, and can put items on police hold, and come into their stores and confiscate items without ever getting the City of FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 7, 2005 PAGE 11 Fridley Police Department directly involved, outside of notifying them via e-mail or some other automatic process which is completed in the APS software. Sergeant Prois stated he believe the APS was first put together by Minneapolis police officers to actually regulate the industry of pawnshops. It is not solely to make police work easier. It was actually to calm down the criminal activity that was going on in pawnshops. He said he ran some reports today on Pawn American and from January 1 through December 31, 2004, 155 items were confiscated from Pawn America and all were from APS. From January 1 through November 7, 2005, 143 items have been confiscated. Councilmember Bolkcom asked about other cities not subscribing to the system and calling Fridley and asking them to investigate something. Sergeant Prois said there is a City ordinance that says it is against the law to pawn something that does not belong to you. What happens is if another city calls the Fridley Police Department and says they are going to come and confiscate an item from Pawn America, because his job requires it, he tells them to send information such as a police report that states the item that city is looking for actually belongs to someone else. They then have to start a police report and an investigation and in fact may end up charging that person. He agreed that the shops have been cooperative. Mr. Rixmann asked if they were aware that many of those items are returned to their store because they are found not to be stolen. He did not think that was something that went through the APS. Sergeant Prois stated on a case-to-case basis, the only thing he has to go with is the information that APS gives them. On another issue, he asked Mr. Rixmann if he was aware of how many transactions are in St. Paul. Mr. Rixmann stated quite a few more than in Fridley. Sergeant Prois asked if he had their numbers. Mr. Rixmann replied he could get them. Sergeant Prois stated when he talked to Sergeant Simmons he stated that most of his time is spent working at the pawnshops. His job description shows that he does some type of vice work, but when you talk to him personally you find out he is actually contributing all of his time for clerical help in his office that is contributed just to pawnshops. Mr. Rixmann stated he believed in a deposition recently that Detective Simmons stated that the number was quite a bit less. In fact, the administrative office for the City of St. Paul spent about 15 percent of their time just working on the billing process. Dr. Burns asked if they had considered a percentage transaction fee as opposed to a flat fee. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 7, 2005 PAGE 12 Sergeant Prois replied the one thing they have not addressed when talking about billing transactions is that is not the total amount of transactions happening at the pawnshop. There are quite a few things that they do not bill. Councilmember Bolkcom asked if he bought a CD from him, would he be charged the $3 fee. Mr. Rixmann said he would be charged. They call that a purchase transaction. Ne�t year their fees will be $72,000 plus $37,000 in property taxes. That is almost $110,000 that they will pay either directly or indirectly to the City of Fridley. Councilmember Barnette asked with respect to liquor licenses, is every liquor license the same amount of money. Captain Weierke replied he was not sure exactly what the City charges per liquor license. Councilmember Barnette stated you have this place that has a liquor license which is charged "X" number of dollars for a license and there is this other liquor establishment and they are not the same, why are they not the same? Is it because one establishment has created more police calls than another establishment? Is that not some of the basis for the license fees? Captain Weierke replied to be fair to the pawnshops, they kept their annual license fee and the per transaction fee the same for both. Pawn America does substantially more transactions than Cash-N-Pawn. They did not want to punish either one, so that is why they did it per transaction. Mayor Lund stated from his view it is not about trying to get more revenue from the pawnshops for the City. He said he was initially upset when the request for a full-time police officer was made. He did not want to consider adding another officer or employee. It is an added expense to the City's budget and to the taxpayers. Mr. Rixmann said he pays a high amount of property taxes. He said he also owns a business in Fridley and pays taxes, too. His business does not generate the amount of police activities that pawnshops do. It is not about trying to raise fees to gather more tax dollars. Mr. Rixmann stated they have reported to the Automated Pawn System for many years and report everything that comes into their store. Mayor Lund asked if he thought the data they submit is pretty thorough. Mr. Rixmann replied it was. He feels bad that there may be some issue with the data because he is not aware of law enforcement ever contacting them. This is the first that he and his Chief Operating Officer have heard of it. He wants to continue the great working relationship that they have with the City of Fridley. He said most cities use an administrative officer or someone in a clerical position. You do not need a detective to perform these duties; $72,000 is very excessive. Captain Weierke replied a police officer has to sign the tickets for confiscated items in violation of City ordinances. Some of the cases can take up to a day for a detective to do. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 7, 2005 PAGE 13 Mayor Lund said Mr. Rixmann spoke about administrative people in the office that can do a lot of the work , but this also takes time. Mr. Rixmann said Minnesota Statute §325(j) states that municipal law enforcement can designate individuals who are not officers to perform these transactions. Mr. Weierke stated the amount of $72,000 would provide the officer. Right now they do have a clerical person who spends part of her day doing the clerical part. They assumed with the passage of this ordinance that they would absorb the clerical work. Sergeant Prois said the one thing they have not really touched on is taking in guns and running his eBay service through Pawn America in Fridley. Mr. Rixmann stated all the items they sell through eBay or on gunbroker.com have been purchased through other stores, and all of their stores report through the Automated Pawn System. So if they move an item from another store up to their E-Commerce department, that is a transaction that has already been run through the Automated Pawn System. Sergeant Prois said that one of the things that Sergeant Mike Simmons from St. Paul told him was he inspects every single weapon that comes into one of the pawnshops in St. Paul. If they looked at that type of policy here, that would take care of the whole time right there and that has to be done by a law enforcement officer. Mr. Rixmann replied he believed that the Bureau of the Alcohol and Tobacco and Firearms comes in and regulates those transactions. They come in and inspect their store and go through all of their gun logs every year. He believed that the federal government is already performing that transaction for the City. Attorney Fritz Knaak, City Attorney, stated he is looking at Minnesota Statute §325(j). He is trying to find out where it is Mr. Rixmann is saying that police can use someone other than licensed police officers. Councilmember Billings stated to Mr. Rixmann he seems to be running a pretty good ship. He thinks he is building quality buildings which tend to enhance their image and the image of the industry. He also noticed this year that they are diversifying. He said he thinks this is an unfair tax because they are trying to raise more revenue than what they anticipate it is going to cost them to administer this statute. The Chief of Police has made a decision that he feels it is in the best interest of the persons of Fridley, the State of Minnesota, and Mr. Rixmann's business to benefit from greater oversight of the industry in the City of Fridley. He thinks one of the areas that is causing him some concern is all of the guns that are being done in Fridley. He is fearful that it is going to be a greater problem for the Police Department. A decision was made to have a full-time officer do this, and the anticipated cost is $72,000. They have a contract with the City of Minneapolis that says every APS deal costs the City one dollar. They can take a look at that and the possibility of renegotiating the contract with Minneapolis. They can look at the E- transactions and whether or not they are transactions that Fridley needs to be charging $4. They can take a look at gun transactions and the need to charge. Currently under our existing City FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 7, 2005 PAGE 14 Code, it says that we are going to charge for them. They can take a look at that, and if it turns out that there is something that they do not need to be doing, they will change that portion of the ordinance and eliminate the fees. The Police Chief has made the determination that he thinks we should have someone full-time. A full-time officer is expensive. Would that police officer ever be used on anything other than pawnshops? If he is the only officer in the department because they do not have a lot of detectives and if a citizen calls in and a clerical person answers and they are insisting on talking to a police officer, might the clerical person direct the call to that officer? Yes, it is going to happen. The idea, though, is that they are going to be spending full-time on pawn and occasionally do something different. Is it going to benefit the citizens of Fridley? We hope so. Should they be charging these things on a sliding scale such as when they pawn this much, the fee is this much? Sure, something could be worked out. It is more of an administrative burden, and the cost is really the cost of investigating each transaction. There is just as much work to check out a$25 transaction as there is to check out a$2,500 transaction. Should the base license fee for businesses be raised rather than the transaction fee? They have one business that does four times the amount of business per year as the other business. So they should probably do it on a transaction basis. Councilmember Billings stated with respect to secondhand businesses, they have a company in town that sells secondhand tools and a couple of clothing consignment stores and those types of things. They actually did look at this. He can honestly tell him they will take a look at whether it makes sense to e�tend this to other types of secondhand stores that are in the City of Fridley. They should be fair in how they administer this and what they are trying to do. He actually is surprised to hear that less than 1 percent of their transactions result in any kind of criminal activity. That is wonderful. It is probably the result of some of the legislation that has taken place in the last ten years in terms of requiring driver's licenses and other information. He asked if the numbers were that low 20 years ago. Mr. Rixmann said he did not know. They opened their first store in 1991. He can say that pre- APS and since the APS has been implemented, the numbers have not changed in any of their stores. Councilmember Billings said if in a year or two they determine they do not need a full-time officer, they are going to take a look at this ordinance and maybe reduce the costs. They are not in the business of collecting fees for services that they are not providing. Councilmember Barnette talked about our liquor license fees. What we do in that particular case is figure what it costs to administer that process, what it cost to administer the servicing of all of those bars, and come up with one price that fits all. In terms of the per transaction fee compared to charging each of them $50,000 a year, they have a mechanism to determine where the costs are because of the number of transactions. They are trying to do this as accurately as they can. He will talk with the Chief of Police about the E-transactions. Mr. Rixmann stated no study has been done on his store. Law enforcement has not spent time going through the inventory nor communicating with him their concerns. So he would respectfully request they have those meetings and communication and go through the inventory and find out what the issues are, if any, prior to establishing the fee. He believes they provide a service in sharing the information and they make law enforcement's job much easier because the information is available on the computer in a police car or at the Police Department. Prior to FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 7, 2005 PAGE 15 APS, a police officer was required to physically go through pawn tickets at the store or the tickets were taken directly to the police department which is very time-consuming and very challenging. He thinks the service should be for free because they are providing so much data and intelligence to law enforcement. Councilmember Billings asked if he paid a fee to APS. Mr. Rixmann said in addition to the fees they pay to the City, they are required to have a camera system in their store which takes photographs of individuals who come into their store. They have about $20,000 invested in a camera system which can download information to a DVD which they can then give to law enforcement. They also have two individuals who every day spend an hour or two to make sure the transactions are downloaded properly to the system and make sure if there is an error, it gets corrected immediately. All this comes at a significant cost. Just to implement the system, they spent hundreds of thousands of dollars to integrate their software on a multi-store basis. They also retain one full-time IT person to implement that process. They are paying a lot of money to get the data to law enforcement every day. In 1994 they were the first pawn store that the City of Minneapolis approached and asked how they collected data and how they could provide that information. They actually did see the benefit in legitimizing their industry. They have always been in support of sharing the data. This year they will have to work maybe two months just to pay the City of Fridley the APS fees. That is a significant percentage of the business which is done in that store. He thinks it is unfair to both the residents of the City of Fridley who do transactions with them and also to them as business owners. Alan Cross, Chief Financial Officer of Cash-N-Pawn, approached and stated they have a store in the City of Fridley, just west of University Avenue and 57th Avenue. He appreciates the opportunity to talk tonight because they have the same concerns. They do over a million dollars of revenue through their store every year so they are not, they hope, inconsequential to Fridley, and they pay many, many thousands of dollars in taxes and fees as well. He would like to echo and basically reiterate everything and the objections made by Pawn America. Their operating system shows that in 2004 they had only 21 confiscations for a total of $2,008 in the City of Fridley. That is something like a quarter of 1 percent. Again he is sure they do not all get caught. It is not a very big number compared to the fees they pay. They respect the Fridley Police Department and feel they handle themselves professionally. They do not have an objection to the need for another officer, if they need an officer, but he does not see how that officer is required as a result of the two pawnshops that are in Fridley. He thinks what happens is the issue gets muddled. The pawnshops provide a data base of information that provides a lot of opportunity for follow-up and through that follow-up, good police work can be done. Just because they have provided that opportunity and provided that data, that does not mean anything beyond the follow-up basis should be at the pawnshops' or the customers' expense. That is general law enforcement. We know we all benefit from that, and that is not something the pawnshop creates. The pawnshop just creates an opportunity for a list of data that, if it wants to be followed up to solve some crimes and if it is helpful in that regard that is good. He also does not think they hit the repeat pawns. They have a lot of customers that come in and pawn the same item, time after time after time. Every time they need gas money, or they have to pay a utility bill or any time they want to buy whatever. They will bring in a television set, a piece of FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 7, 2005 PAGE 16 jewelry, or whatever it is they are pawning. That item has gone through the system before from the same person. It makes no sense to charge a fee for the same item from the same person on any basis and those should be excluded. He thinks they are well-covered with the smaller items and it certainly makes sense to have some rule where items under a certain dollar amount are excluded. They do need to get coverage on the secondhand dealers. If they do not regulate them, that is where the stolen items are going to go. The pawnshops are giving the cities and police departments the opportunity. He said he would be glad to answer any questions specifically related to Cash-N-Pawn. Mr. Rixmann stated they had mentioned that there were 83 pawn transactions related to confiscations this year. He said that was the equivalent to 250 individual items on those pawned tickets so each pawn ticket may have three items on that, so 3 multiplied by 83, would approximately be 250. If they took the 19,949 transactions that they concluded this year, that relates to 50,000 individual items which were brought through their store. That is still one-half of 1 percent which is approximately the same as the .14 percent of the number of transactions. MOTION by Councilmember Bolkcom to enter into the public record the letter from attorney Bradley J. Gunn from Leonard, Street and Deinard. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Carol Plaster, 11624 Cottonwood Street, approached and said she just wanted to say she frequently goes to the pawnshops to buy stuff that she cannot go to the store and buy. If she did not have the pawnshops, her and her kids would go without. She has pawned a couple items over and over to pay for house payments, pay for gas, etc. If you cannot qualify for a cash card or credit card, what are you going to do? You do whatever it takes. They have helped her tremendously. About secondhand stores, she goes to Goodwill and Salvation Army, but she finds that after the people donate their stuff, the employees will take it for themselves and resell it. This way she can get the stuff she needs without worrying about an employee taking it before she can get it. The pawn shops have helped her out tremendously. Councilmember Billings suggested that they vote on first reading tonight. If it is approved, he suggests that they take a look at some of the issues that were raised tonight before they bring it back for a second reading. Mayor Lund asked for justification from the police officers of the Police Department for a full- time officer. Councilmember Bolkcom stated she thinks that Minnesota Statute §325(j) that was mentioned should be investigated. They should talk to the City of St. Paul and look at some of the other communities who have very similar pawnshops. They should review the justification of the St. Paul police officer and find out how many transactions they have. Check out E-Commerce and what they are being charged for it, if they want to go into all those fee counts at this point, and if they could also look at the repeat items. They should look at how much time it takes versus a full-time police officer and how much time is spent by administrative personnel. She believes FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 7, 2005 PAGE 17 staff said office and vehicle expenses would be absorbed in the cost. She would like to know how much they are. She would like to know what the transactions are for the last two years and how many have been returned. MOTION by Councilmember Bolkcom to waive the reading of ordinance and adopt the ordinance on first reading. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Councilmember Bolkcom asked when the people in the audience would be notified that this would be on the agenda. Dr. Burns said he thought the plan was to bring it back on the 21st of November. Councilmember Billings stated if anyone wants to be contacted, they can leave information with the Police Department. Otherwise, they would probably just contact the store managers in Fridley and let them know when it is going to be back on the agenda. 15. Special Use Permit Request, SP #05-03, by Kinghorn Construction for Woodcrest Baptist Church, to Allow an Expansion to an Existing Church in an R-3, Multi- Family Zoning District, Generally Located at 6875 University Avenue N.E. (Ward 1). 16. Variance Request, VAR #05-14, by Kinghorn Construction, for Woodcrest Baptist Church, to Allow a Reduction in the Required Parking Setbacks to Allow the Reconstruction of the Parking Lot, Generally Located at 6875 University Avenue N.E. (Ward 1). Mr. Hickok, Community Development Director, stated this is a dual request, one for a special use permit and one for a variance for the Woodcrest Baptist Church. The petitioner is seeking a special use permit to allow the expansion of the Woodcrest Baptist Church which is located in an R-3, Multi-Family District. The church is located at 6875 University Avenue N.E. The proposed expansion will increase the building footprint by 14,162 square feet. The addition will include a main core sanctuary with a small balcony and a lower-level classroom space. The addition will also increase the size of the foyer, add an elevator and will relocate the restrooms and nursery. Codes have changed since the original construction so a lot of this is code-related. The petitioner is also seeking a variance to reduce the parking and hard surface setback from any street right-of-way from 20 feet to 2 feet on the west side of the property which will recognize an existing non-conforming setback They hope to reconstruct the curb in that same location in the event that they would need to do that. They are asking for a variance to reduce the parking and hard surface setback from 20 feet to 5 feet on the north side of the property which will allow reconstruction of the church's parking lot. Right now the parking lot is constructed over the property line, and this will allow it to be 5 feet back. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 7, 2005 PAGE 18 Mr. Hickok stated the church was originally constructed in 1965. In 1974, an addition was built and in 1985, a gymnasium addition on the south side of the church was built. The existing church combined with the gymnasium space totaled 23,719 square feet. Woodcrest Baptist Church currently has approximately 400 worship members. The church also operates a school which provides kindergarten through 12th grade with approximately 220 students. Churches are permitted as a special use in the R-3, Multi-Family Districts, provided they meet the necessary requirements related to building and parking subject to stipulations suggested to staff and approved by Council. All of these requirements are being met with their proposal with respect to the parking setback on the north and the west sides of the property. City Code requires a 20-foot parking setback from any public right-of-way to provide green space. The parking setback on the west side of the property is deficient as a result of the State acquiring additional land for University Avenue. The parking is arranged and designed and built in a manner that serves the building well. There is quite a wide road along University Avenue and a path that provides pedestrian access between the parking area and University Avenue. Due to the highway taking the parking lot on the west side of the property setback, petitioner is seeking the first variance. There is a reduction from 20 feet to 5 feet on the north end. This actually improves the current conditions. Granting the variances would not be setting a precedent for existing or future residential, commercial, or industrial properties. The situation is unique to the property. This cleans up some non-conformities. It also assures that the parking demands of the church are being met. Mr. Hickok stated currently the Woodcrest Baptist Church has 226 parking stalls. Code requires 1 stall per every 3 seats. After the proposed addition, the church will have 580 seats in their assembly facility, requiring an additional 194 parking spaces. After the addition is constructed, the site will be left with one e�tra parking stall, which does meet the Code requirements. The proposed addition will be constructed of rock-faced block, pre-cast concrete, and brick to match the existing structure. The proposed addition does meet all setbacks, heights, and lot coverage requirements. Petitioner has been in contact with the Rice Creek Watershed regarding ponding and storm water treatment. Due to the fact that there will be a slight decrease in the impervious surface, the Watershed has determined that a biofiltration system is an acceptable alternative to infiltration. That is a fancy way to say they are going to have a rain garden on this site. The petitioner is proposing to put this system on the west side of the proposed addition and the location and size will still need to be approved the Rice Creek Watershed. There is area to do that, and they do not contemplate there will be any problems there. The Planning Commission unanimously recommended approval of this special use permit at their October 19 meeting. The Appeals Commission unanimously recommended approval of the variance request at their October 26 meeting. Staff recommends Council's approval with nine stipulations. Councilmember Barnette asked where the addition was going. Mr. Hickok said it would be on the northwest corner of the building. There will be a bus loop where the bus loop is now, so the new sanctuary is not going to diminish that. It stays back from the neighborhood and stays closest to University Avenue on the northwest corner. Councilmember Barnette asked if the height of the building would be the same as it is now. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 7, 2005 PAGE 19 Mr. Hickok replied the height of the building will be within the Code requirements for the R-3 District.. It does put it higher than the existing building. Councilmember Barnette asked how much higher it would be Mr. Hickok replied the Code requirement in the R-3 District is up to 50 feet. It is probably pretty close to that. Councilmember Bolkcom questioned if it was 50 feet because in the report, it says not to exceed 45 feet at midspan? Mr. Hickok said that 45 feet is the correct height for the midspan. Councilmember Bolkcom stated one comment made by the Planning Commission related to some of the siding on the existing building that needed repair. There was some question about when that was going to be done. She asked if there any way they could make that a stipulation. Mr. Hickok replied, no, although they do try to have them tie their new addition architecturally to the building itsel£ It their understanding after talking to church representatives that it is their intent to renew that building space and take care of that concern by painting or whatever remedy is necessary to make that right and nice with the new building. Gordy Kinghorn, Kinghorn Construction, approached and stated City staff has been great to work with. He works with a lot of cities and he says they should give themselves credit. The presentation really sums up the entire project. Regarding the question about the siding, they were not hired to do that. They were only hired to design the new structure. When they had talked to the residents about that after the meeting, it was the deacon's trustee group that actually said they were working on that. They do recognize that the building needs repair. Councilmember Bolkcom asked if it was in the plans. Mr. Kinghorn said he believed it was tied together. Councilmember Bolkcom stated that is why she asked. Mr. Hickok stated they are glad to have it on the record. It is an issue. Dr. Burns, City Manager, asked if they see the 14 percent reduction in parking as a hardship. Mr. Kinghorn replied they have to go with what they have. That is all the property there is. Councilmember Bolkcom asked if there are any complaints that the parishioners are parking on the streets. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 7, 2005 PAGE 20 Councilmember Barnette stated he and Scott go by there every day. There is adequate parking there now. He has never seen the parking lot full and he has not heard any complaints. Mr. Hickok stated staff has not heard any complaints. Since the application, they have studied the building and the parking lot and the activity there quite a few times. MOTION by Councilmember Billings to approve Special Use Permit Request, SP #OS-03, by Kinghorn Construction for Woodcrest Baptist Church, with the following nine stipulations: 1. The Petitioner shall obtain any required permit prior to the start of construction. 2. The parking lot shall be restored to Code requirements for paving, curbing and painting after the addition is completed. 3. Proposed addition shall not exceed 45 feet in height at the midspan, between the ridge and eave line, when measured from finished grade. 4. The subject property shall be maintained free of any and all construction debris. 5. Construction vehicles shall not bring materials before 7:00 a.m. or after 9:00 p.m. 6. The addition shall be architecturally compatible with the existing building and finished with complementary siding and color scheme. 7. The City reserves the right to require additional parking should the demand of the facility warrant it. 8. Landscape plan shall be reviewed and approved by City staff prior to issuance of a building permit. 9. Petitioner shall satisfy Rice Creek Watershed requirements prior to issuance of a building permit. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION by Councilmember Billings to approve Variance Request, VAR #OS-014, by Kinghorn Construction, for Woodcrest Baptist Church, with the following nine stipulations: 1. The petitioner shall obtain any required permit prior to the start of construction. 2. The parking lot shall be restored to Code requirements for paving, curbing and painting after the addition is completed. 3. Proposed addition shall not exceed 45 feet in height at the midspan, between the ridge and eave line, when measured from finished grade. 4. The subject property shall be maintained free of any and all construction debris. 5. Construction vehicles shall not bring materials before 7:00 a.m. or after 9:00 p.m. 6. The addition shall be architecturally compatible with the existing building and finished with complementary siding and color scheme. 7. The City reserves the right to require additional parking should the demand of the facility warrant it. 8. Landscape plan shall be reviewed and approved by City staff prior to issuance of a building permit. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 7, 2005 PAGE 21 9. Petitioner shall satisfy Rice Creek Watershed requirements prior to issuance of a building permit. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 17. Motion to Deny Renewal of Residential Rental Property Licenses. John Berg, Fire Chief, stated the license renewal denial provision of Fridley City Code, Section 220.13.2, Conformance, states, "No operating license shall be issued or renewed unless the residential rental property or condominium conforms to the provisions of this Chapter, the ordinances of the City, and the laws and regulations of the State of Minnesota." They are asking the City Council to deny renewal of residential rental licenses for the following four properties, pending resolution of all issues, including conducting inspections to make sure that all corrections have been completed, payment of delinquent fees and penalties due and payable to the City, and proper and timely filing of license applications: 140 Mississippi Place N.E. 160 Mississip�i Place N.E. 360 — 362 57t Place N.E. 6471 — 6477 Riverview Terrace N.E. Councilmember Bolkcom said from the information contained in the agenda packet, some of the problems range from $158 assessed after the third no-show, non-payment of the license fee, not showing up for the initial inspection, not showing up for an inspection scheduled 45 days in advance, non-payment of $150 for a third inspection, and the application for one has been late the last three years by at least two months. Fire Chief Berg stated there is quite a mi�ture. They have a number of delinquent fees, they have properties that they are not allowed to enter for the purpose of inspection, and they have some issues with delinquent licenses and lack of information on the licenses. Councilmember Bolkcom stated in the one action the initial inspection was back in April. She asked how they normally contacted someone when they did not make the first initial inspection. Fire Chief Berg replied the normal process is when they set up the initial inspection, they make contact with the owner by telephone or e-mail and try and set up an inspection. If they are not able to do that, they send a notice. In most cases they send out a date and they go out to conduct the initial inspection. If the property owner or representative fails to show for an inspection, they make an immediate call that day and attempt to continue that inspection. If that does not happen, then they are sent a notice by mail. Councilmember Bolkcom stated, so for the one who did not show for the third time, they actually made contact with that owner. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 7, 2005 PAGE 22 Fire Chief Berg said they sent a notice and gave a date for another inspection. An inspector went out to that property and if no one showed up, again they tried to make contact and would send a notice with a scheduled date. Councilmember Bolkcom stated so they have a very detailed process and that is all in writing. Fire Chief Berg replied, yes. Mayor Lund asked whether the property owners have also been notified of tonight's potential action. Fire Chief Berg replied, yes. Mayor Lund asked if that was by certified mail. Fire Chief Berg replied he believed it was by U. S. mail. Mayor Lund asked if they had any responses from the property owners about the second or third inspections or the re-inspections. Fire Chief Berg replied they had two additional properties on the list, 190 and 191 Island Park Drive, N.E. The owner did contact them and made the proper corrections. They inspected those the properties and took them off the list. Mayor Lund said the others had not contacted them. Fire Chief Berg replied that is correct. Mayor Lund asked what happens from this point if there are people living in those properties. Fire Chief Berg stated they do not force the current residents to leave; however, they do inform them of their rights and that the property owner can be cited under State statute for operating a rental property without a license. They will attempt to work with the owners again. Councilmember Bolkcom asked if there will be a letter sent by certified mail. Fire Chief Berg replied he believed the City Code says it has to be by certified mail. MOTION by Councilmember Bolkcom to deny renewal of residential rental property licenses for the following properties: 140 Mississippi Place N.E., 160 Mississippi Place N.E., 360 — 362 57th Place N.E., and 6471 — 6477 Riverview Terrace NE. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 7, 2005 PAGE 23 4. First Reading of an Ordinance Amending Chapter 104 of the Fridley City Code Pertaining to Diseased Tree Removal Assessment Fees. Councilmember Bolkcom stated she was surprised to read in the agenda that they switched from 25 percent after the initial discussion at their previous meeting. Mr. Hickok stated after the public hearing on this item, the Finance Director and Community Development staff sat down and talked about this. The Finance Director had some concerns that a flat 25 percent may in some cases be too much of an administrative fee and in other cases, not enough. He believed the most accurate way to do this is to simply state that we would recoup our administrative fees, rather than tying it to any certain percentage. It is not a not a revenue- making process, it is one simply to recover the City's costs. Councilmember Bolkcom asked how they would decide what those costs were and how would they keep track of them. Mr. Hickok said it does take a bit more record keeping to track staff time directly tied to this. It is fairly straightforward but there is some bookkeeping involved. Councilmember Bolkcom asked if there is an issue with this since they had a public hearing on the 25 percent fee and have now gone to costs. Mr. Hickok said this is a continuing dialogue and they brought it to Council's attention before they acted on the first reading. Everything has been before the public. Mayor Lund said he thought it was fair. Mr. Hickok stated that the Finance Director was concerned from an auditing perspective. You want a rationale between what they charged and what the actual fee was or what the actual activity was that they incurred the expense on. He would just like to take away the percentage and make it a real expense. Councilmember Bolkcom stated so whether it is a$6,000 vs. a$1,000 tree, it is totally based on the amount of staff time involved. Mr. Hickok said the investment of staff time is probably going to be same. MOTION by Councilmember Bolkcom waive the reading and approve the ordinance on first reading. Seconded by Councilmember Billings. MOTION UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 11. Licenses. MOTION by Councilmember Billings to approve the licenses as submitted. Seconded by Councilmember Barnette. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 7, 2005 PAGE 24 MOTION UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. John Berg, Fire Chief, stated he would like to strike 160 Mississippi Place N.E. and 6471-6477 Riverview Terrace NE. MOTION by Councilmember Billings to amend the motion and strike the following properties from the license list: 140 Mississippi Place N.E., 160 Mississippi Place N.E., 360 — 362 57tn Place N.E., and 6471 — 6477 Riverview Terrace N.E. MOTION UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 18. Informal Status Reports. Mayor Lund reminded people to vote. Mayor Lund invited anyone who was interested to attend the Second Annual Fridley Historical Society's Hall of Fame. ADJOURN: MOTION by Councilmember Barnette, seconded by Councilmember Bolkcom, to adjourn. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MEETING ADJOURNED AT 10:04 P.M. Respectfully submitted by, Denise M. Johnson Recording Secretary ������ Scott J. Lund Mayor