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08/11/2008 - 29214CITY COUNCIL MEETING CITY OF FRIDLEY AUGUST 11, 2008 The City Council meeting for the City of Fridley was called to order by Mayor Pro Tem Barnette at 7:30 p.m. ROLL CALL: MEMBERS PRESENT: Mayor Pro Tem Barnette Councilmember Saefke Councilmember Varichak Councilmember Bolkcom MEMBERS ABSENT: Mayor Lund OTHERS PRESENT: William Burns, City Manager James Kosluchar, Public Works Director Richard Pribyl, Finance Director Don Abbott, Director of Public Safety Fritz Knaak, City Attorney PROCLAMATION: Don Maurer Appreciation Day — August 11, 2008. APPROVAL OF PROPOSED CONSENT AGENDA: APPROVAL OF MINUTES: City Council Meeting of July 28, 2008. APPROVED. NEW BUSINESS: 1. Receive Plans and Authorize Advertisement for Bids for the 85t'' Avenue Trail Project, City of Fridley Project Number ST2008-03. William Burns, City Manager, stated the City has been attempting to complete its portion of the 85th Avenue Bikeway since 2001. Upon completion of the Coon Rapids portion of the bikeway, residents will enjoy a bikeway link between the Mississippi River Regional Trail, which e�tends along East River Road and the Northtown transit hub. The project will e�tend from the current terminus of the University Avenue bikeway to the BNSF tracks on 85th Avenue. It has been designed so as not to interfere with future widening of 85th Avenue by Anoka County. This means that much of the current project will be built through land on the north side of the FRIDLEY CITY COUNCIL MEETING OF AUGUST 11, 2008 PAGE 2 Springbrook Nature Center. The 10' wide bituminous path will be built across wetland areas on pile supported bridge sections. It will end on the west side of the BNSF tracks. Bikeway amenities will include bicycle racks, rest areas, and refuse containers. Dr. Burns stated the project has been delayed for various reasons including negotiations with BNSF and Anoka County. While we had hoped to construct it in 2007, money needed for the $250,000 local match had to be used on the 2007 and 2008 street improvement projects. Since we have been warned by MnDOT that we are in danger of losing our Federal Transportation Enhancement Funding, staff has determined to use better than expected 2008 MSAS funding along with 2009 MSAS funding to cover the City's local match. We now estimate that the project will cost $1,150,000. The use of 2009 MSAS funds for the 85th Avenue bikeway may require that we consider reducing the scope of the 2009 mill and overlay project, or alternatively use 2010 MSAS funds to cover any shortfall. Staff recommends that Council authorize staff to seek bids in early September. Bids would be opened in October and construction would start in November with completion by the end of July, 2009. Since many of the difficult construction areas are in wetlands, winter construction will be to our advantage. Dr. Burns stated the recommendation was reviewed by and endorsed by the Fridley Parks & Recreation Commission at their meeting on August 4. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 2. Receive Plans and Authorize Advertisement for Bids for Commons Park Water Treatment Plant Improvements, City of Fridley Project No. 379. William Burns, City Manager, stated Public Works staff is proposing to replace the filter media in five of the seven filters at the Commons Park Water Treatment Plant. The base bid also includes some welding, demolition, door installation, and painting. Staff suggests that we bid two alternates. The first alternate would include repairs to the air backwash system. The second alternate would allow us to retrofit the backwash sediment removal system. Dr. Burns stated the estimate for the base bid items is $527,000, about $27,000 more than we had anticipated in preparing the 2008 budget. The plan is to bid in September and to begin construction in October. The project would be completed by May 1, 2009. Staff recommends that Council receive the plans for this project and authorize us to seek bids. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 3. Claims (137738-137950). APPROVED. 4. Licenses. FRIDLEY CITY COUNCIL MEETING OF AUGUST 11, 2008 PAGE 3 APPROVED THE LICENSES AS SUBMITTED AND AS ON FILE. 5. Estimates. Midwest Asphalt 5929 Baker Road Suite 420 Minnetonka, MN 55345 2008-1 Street Improvement Project Estimate No. 3 ............................................. $ 225,831.03 Standard Sidewalk 10841 Mankato Street N.E. Blaine, NIN 55434 2008 Miscellaneous Concrete Project No. 375 Estimate No. 2 ............................................. $ 8,048.44 North Valley, Inc. 2015 Iguana Street N.W. Nowthen, MN 55330 2008-2 Mill and Overlay Project Estimate No. 1 ............................................. $ 74,721.13 APPROVED. APPROVAL OF PROPOSED CONSENT AGENDA: MOTION by Councilmember Bolkcom to remove the Minutes from July 28, 2008, Item 1, and Item 2 from the consent agenda and place them on the regular agenda. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR PRO TEM BARNETTE DECLARED THE MOTION CARRIED UNANIMOUSLY. ADOPTION OF THE AGENDA: MOTION by Councilmember Bolkcom to approve the agenda with the addition of the Minutes from July 28, 2008, and Item 1 and Item 2 from the Consent Agenda. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR PRO TEM BARNETTE DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF AUGUST 11, 2008 PAGE 4 OPEN FORUM: MOTION by Councilmember Saefke to receive a Petition by residents along 59th and 7th Streets concerning the Little League ball fields. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR PRO TEM BARNETTE DECLARED THE MOTION CARRIED UNANIMOUSLY. Councilmember Saefke asked staff to take a look at the situation and the petition. The petition offers three suggestions that staff can look into. Councilmember Bolkcom asked staff to provide them with the number of tournaments and actual activities that go on there. She would also like them to look at any other complaints voiced to the Parks and Recreation Department and Police Department. PUBLIC HEARING: 6. Consideration of the Revocation of the Intoxicating Liquor License Issued to William J. Bisek of JWBB, Inc., d/b/a Baggan's Pub, Located at 3720 East River Road (Ward 3). MOTION by Councilmember Bolkcom to waive the reading of the public hearing notice and to open the public hearing. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR PRO TEM BARNETTE DECLARED THE PUBLIC HEARING OPENED AT 7:45 P.M. Richard D. Pribyl, Finance Director, stated the business was to operate as a restaurant on one side and the Oops Theater and banquet center on the other side. The original public hearing for the liquor license was conducted on November 13, 2006; continued to December 4 and 11; and approved on January 4, 2007, and the license issued on February 16, 2007. The original public hearing was continued pending a review of a pro forma and some sort of business plan by Mr. Bisek in order to determine whether the business could comply with Chapter 603 of the City Code. Staff did receive a pro forma and a brief letter outlining Mr. Bisek's understanding of our liquor code and his ability to comply with it. At that point, we were satisfied with the business plan and the other information that they provided in conjunction with the overall operation. Mr. Pribyl stated during the week of July 21, 2008, staff received information of a change in concept of the dinner theater and possible ownership change, but not from the owner of the restaurant. On the morning of Sunday, July 27, 2008, the police were called to Baggan's Pub at 2 a.m. The call required mutual aid assistance from a number of other communities. The disturbance at Baggan's Pub resulted in a total of 37 squad cars with numerous police officers being called to that scene. Based on the scene, it was apparent a change of venue had occurred. Staff had received information a week earlier that the theater side had now become Klub Africa. Staff then googled "Klub Africa" and found that an entertainer by the name of `B-Face" was being advertised on "My Space." He was appearing at the Baggan's Pub location on August 29, FRIDLEY CITY COUNCIL MEETING OF AUGUST 11, 2008 PAGE 5 2008. Staff also visited the County's website and found there were delinquent taxes on the property in the amount of $27,732 which is a problem in relation to the liquor ordinance for the City of Fridley. Mr. Pribyl stated due to the change in operation, staff was concerned about a change in ownership without a license change. Staff then scheduled an administrative review with William Bisek on July 30 for a review of his operation. Based on that discussion, it was apparent that he was working on a potential sale with Zanzibar Inc. Staff s concern is that there may be two independent businesses running under one liquor license in violation of the City Code. Mr. Pribyl said staff made it clear to Mr. Bisek that the City Council had approved the concept of the dinner theater and did not want to see an operation similar to the past ownership. At the time Mr. Bisek applied for the liquor license, the public hearing was continued until staff had time to meet with Mr. Bisek to determine whether he could comply with the food-to-liquor ratio required by all restaurants with a liquor license in Fridley. Mr. Pribyl stated at this point staff has concerns regarding how this license holder is conducting this multi-venue operation within Chapter 603 of the City ordinance, and the public safety issue that has resulted from only a few nights of operation. It is not entirely clear as to how Mr. Bisek is actually operating these two sides. Mr. Bisek is in attendance as well as representatives from Zanzibar or Klub Africa to answer any questions regarding the current operation of the restaurant. Councilmember Bolkcom asked Chief Abbott if he had anything to add. She asked if there was any information summarizing the number of calls to this establishment. Don Abbott, Director of Public Safety, replied in 2007 under the operation of Baggan's Pub, they had 35 calls for service. Those were fairly low-level calls for service--alarm calls, civil disputes, some accidents, disorderly conducts, 3 domestic assaults, and 2 other assault calls which all appear to be minor in nature. This year through August 4, 2008, they have had 24 calls for service--3 misdemeanor assaults, 5 disorderly conducts, and a domestic assault. The rest were some fairly minor offenses. There have not been an e�tremely large number of calls at this point. Councilmember Bolkcom asked what made the police go to Baggan's Pub on July 27. Chief Abbott said the police were down in the area of Baggan's Pub throughout the evening based upon his request to conduct walk-throughs of the business. They had received some information 1'/z to 2 weeks earlier on a couple other police calls--one being a minor assault, one being a violation of a civil order for protection. In one of the calls, the person had asked the staff of Klub Africa (which is the first they heard of another club operating at that bar) to call police and staff refused, telling the person they could not call the police because they had minors on the premises. Police then directed our weekend patrol officers to conduct walk-throughs, do ID checks, etc. There were specifically there at 2 o'clock on another call of a fight involving a stolen cell phone, when fights began breaking out around the officers. In fact, one officer was slightly separated from the other officers on the scene, and fights were occurring right around his FRIDLEY CITY COUNCIL MEETING OF AUGUST 11, 2008 PAGE 6 squad car. At one point bottles were being thrown in the direction of his squad car, and the crowd was actually appearing to enclose or encroach in upon the officer in his squad car. At that point, our officers called for emergency backup from several communities. They reported approximately 350 to 400 patrons on the premises at that point with parking out onto 37tn Avenue, across 37th Avenue. There were about 100 people who seemed to be actively involved in different altercations that were going on. That required the high number of squad cars. Two arrests were actually made, and the crowd was dispersed. One person had to be tasered. Squads from Fridley were there for an hour. Approximately 37 squads from other communities-- Minneapolis, Coon Rapids, Spring Lake Park, Columbia Heights, etc., came to assist. Councilmember Bolkcom asked the results were of the identification checks. Chief Abbott replied, the officers reported when they were there earlier in the evening, there were very few patrons in the business--50 or fewer and they all appeared to be of age. The report does not indicate if the officers actually requested ID from anyone other than the statement that people did appear to be of age at that time. Councilmember Bolkcom asked, when he mentioned there were 350-400 patrons, were they inside or outside of the building. Chief Abbott said they were actually in the parking lot and the nearby street. Councilmember Bolkcom asked if there were other patrons indoors who were not aware of things at that time. She asked if the police had to go in the building at all. Chief Abbott replied, there is no indication in the report. It sounds like the entire issue occurred outside. Based upon the way the report was written, there would not have been any officers inside the building—they had their hands full outside. Councilmember Bolkcom asked what the food-to-liquor ratios had been for the establishment. Mr. Pribyl said he did not have the actual numbers, but they have been just barely above the 40 percent. They have been at the minimum. Councilmember Bolkcom stated she thought they were pretty clear when they started talking about this liquor license, that they were concerned about the whole thing with the dinner theater and how this was all going to be run. She recalls they had a fair amount of issues related to taking care of the kitchen and there were some of the health and safety issues related to Anoka County and inspections. That has all been cleared up, but they were pretty clear about the food- to-liquor ratio and about the liquor license. She would like to have the minutes relating to this before the ne�t meeting. Mr. Pribyl said in reviewing how the license was issued, they did go through a number of steps, to make all of this perfectly clear to Mr. Bisek, so that he firmly understood the concept of our ordinance. We felt comfortable that the operation would be able to comply. FRIDLEY CITY COUNCIL MEETING OF AUGUST 11, 2008 PAGE 7 Councilmember Bolkcom asked when they were aware that the dinner theater was no longer operating and how did they find out. Mr. Pribyl replied, that probably occurred in the last week or two in July when the Police Chief actually came into his office and made him aware they potentially had another club operating in the theater side which appeared to be independent of the operator. They had not actually heard much of anything going on there for some time. William Burns, City Manager, stated he thought they knew fairly early in the game that Oops was not working out in 2007. Probably within two months after they got their liquor license. Mr. Pribyl stated as he recalls, Mr. Bisek did have his own dinner theater after that. We did know that they had not come to terms with the Oops Dinner Theater, but he was actually trying his own comedy nights. They had not heard there was anything contrary to the concept of the dinner theater, comedy club type thing. Councilmember Bolkcom asked Mr. Pribyl to summarize Chapter 603, which is basically what our whole liquor license is. When giving a liquor license to an establishment, it spells out the food and liquor ratios and some of the behavior. She asked if it also mentioned the taxes. Mr. Pribyl replied Chapter 603 encompasses the entire parameters of the liquor license issuance and has all facets of the requirements of the liquor license. Councilmember Bolkcom asked Mr. Pribyl if he can remember another establishment where they had delinquent taxes and were allowed to continue to have a liquor license. Mr. Pribyl replied, not on a continuing basis. To the best of his recollection, they may have had one occurrence where there were delinquent taxes but they remedied immediately before they renewed. Councilmember Bolkcom stated he mentioned around $27,000 of delinquent taxes. She asked how long they had been delinquent. Mr. Pribyl replied the second half of 2007 and the first half of 2008. Councilmember Bolkcom asked Attorney Knaak if there was anything in Chapter 603 that gives the City any latitude when someone is delinquent. Fritz Knaak, City Attorney, said being current on the taxes is a requirement of the licensure. Councilmember Bolkcom asked Chief Abbott if he would summarize what happened on August 9 and if he saw any activity in the dinner theater area. Chief Abbott replied, the weekend following the reports they got back from their officers there were signs posted at the building basically saying that the Klub Africa's operation had been cancelled. He believed more specific, that no Zanzibar patrons were welcome or allowed on the FRIDLEY CITY COUNCIL MEETING OF AUGUST 11, 2008 PAGE 8 premises due to the City of Fridley or Fridley city order. He did not see the sign itself. Councilmember Bolkcom asked whether it was signed. Chief Abbott replied, he is not aware of a signature. The officers reported a very quiet weekend down at the Baggan's facility. Dr. Burns stated he knows they had plans to keep an eye on the place on August 2. Did they have any problem down there then. Chief Abbott replied, no. Attorney Knaak replied, regarding Chapter 603, yes, it is a requirement of the licensure not to be delinquent with taxes. More significantly, if in fact there is a failure to pay those taxes, there is an immediate forfeiture provision on their bond which he had not realized until he did a review. So regardless of what the Council decides to do tonight, and he believes the recommendation of the staff was expected to continue the hearing, one thing that might be worth the review is an examination of the bond forfeiture provision. Regardless of what the Council ultimately decides, those particular provisions are automatic. Councilmember Varichak asked Chief Abbott if they posted the notice at Baggan's. Chief Abbott said he did not order that posting, and he is not aware of any member of City staff within the Police Department or otherwise who ordered it. In their discussions, they did not order it or authorize it. Councilmember Varichak asked how they found out about it. Chief Abbott stated the officers working that weekend reported that back through the chain of command. He did not see it personally. Councilmember Bolkcom asked who met with Mr. Bisek on the July 30. Mr. Pribyl replied, Deb Skogen, himself, and a representative from the Police Department also. Councilmember Bolkcom asked, did the City staff at that point say that side was closed and it was an order from the City. Mr. Pribyl replied, not at all. They did not have anything to do with any closing of any part of that restaurant. Their meeting was actually only to basically find out what was going on, more of an administrative review of just trying to gain facts as to the operation. Councilmember Bolkcom asked, was Mr. Bisek aware of the activity that had gone on that previous Saturday and the number of squad cars and that type of thing. Mr. Pribyl replied his statement or reaction indicated that he was not aware of the situation. FRIDLEY CITY COUNCIL MEETING OF AUGUST 11, 2008 PAGE 9 Councilmember Bolkcom asked Chief Abbott if any of the officers mentioned that Mr. Bisek was on the premises or if there had been any discussion with him or anyone else from the establishment. Chief Abbott replied, no mention was made in the report from July 27 that Mr. Bisek was on- site that evening or that the officers talked to him. Councilmember Bolkcom asked if this was something they would normally report back to them. Chief Abbott replied, they do at times report specific incidents back to license holders or property owners. More likely it is after they have seen a series of incidents or a trend of incidents. They will then ask the license holder, the manager, or whoever to come in and meet with them or will provide them with a listing of the reports, talk about their concerns, and see if there are any improvements we can suggest or they can suggest. In this specific case our initial information came days before the incident on July 27, and our plan at that point was to gather more information. Chief Abbott said they were particularly concerned about staff refusing to call police when a patron asked them to and about the comment about minors being in a liquor establishment. It has been their experience if they were then to call the license holder and talk about those issues, they would not be able to verify or determine if that was occurring. So their plan was to have the officers go down, do the ID checks, determine a little further what exactly was going on, and then call the license holder in for a conference. Councilmember Bolkcom asked if it would be fair to say that during the Council meeting on July 28, that is why there was a motion made to put this on the agenda, because of the situation and the escalation of activities there. Chief Abbott replied, his understanding was it was a combination of the e�traordinary incidents requiring 27 officers to respond, coupled with our strong suspicion that there were actually two clubs operating under one license. Mr. Pribyl said he agreed with that. A chief concern is that we appear to have two different operations operating under the same liquor license. If there was a change in ownership that would instantaneously require a new application and a new public hearing regarding a new liquor license for that establishment. Councilmember Bolkcom asked if we were treating this establishment any different than any other establishment with any of these activities that have happened. Mr. Pribyl said we would do the same thing if we were aware of any kind of an owner shift in a license. Mayor Pro Tem Barnette asked if in fact the new tenant operating there for a week or two FRIDLEY CITY COUNCIL MEETING OF AUGUST 11, 2008 PAGE 10 weeks, where was he getting his liquor and providing the food. Mr. Pribyl replied, in their interview, they indicated it was Baggan's Pub. He said that was their main concern. They just had too many questions which necessitated bringing this before Council. Chief Abbott stated Lieutenant Monsrud reported to him that a representative of Zanzibar or Klub Africa stopped in to visit and indicated that a purchase agreement was already in existence. Mayor Pro Tem Barnette asked if that was for the entire operation or just for that portion of the club. Chief Abbott said he believed it was for the entire premises. Councilmember Bolkcom asked if they gave them a date of the purchase agreement. Chief Abbott replied, Lieutenant Monsrud reported he asked for a copy of the purchase agreement; but the individual declined to provide it. However, there was also some talk that there was a five-year term to the purchase. Mr. Pribyl said in their interview it was indicated that there was a verbal agreement with Zanzibar Incorporated, there was a down payment made, and at that point an agreement had been drafted between attorneys but had not yet been signed. Councilmember Bolkcom asked when that information was given, if they were aware of the liquor license and how the liquor license worked. Mr. Pribyl stated Mr. Bisek was well aware of the requirement, but he did not know about the representatives from Zanzibar Incorporated. Councilmember Bolkcom asked Mr. Bisek if he could tell her approximately when Oops Theater no longer operated at his establishment. William Bisek, 3720 East River Road, stated Oops Theater did kind of a late night move-out type of proposition in April or May 2007. Councilmember Bolkcom asked Mr. Bisek what happened after that. Mr. Bisek replied, Oops Theater filed bankruptcy. He was somewhat sold a bill of goods on them. He did do some background on them but unfortunately not deep enough to find out about the financial issues they were having. In fact, during all the time they were operating there, he never received any funds from them for the business that was being run there. So with wanting to stay with the business plan that he had first approached the City Council with, himself and three other people came to an agreement that they were going to try and operate their own dinner theater. So they formed a business that was called "PBR Events." Councilmember Bolkcom asked when that was. FRIDLEY CITY COUNCIL MEETING OF AUGUST 11, 2008 PAGE 11 Mr. Bisek replied immediately after Oops had moved out. They had purchased rights to a play that was Neil Simon's, "Odd Couple." It was a whole different ballgame in trying to market it. To actually sell the product was quite an undertaking, but they were committed to it and had every intention of doing that. Then, unfortunately, he believed it was the end of July, they were broken into in the middle of the night, three safes were taken, and there was e�tensive damage done to their security system, both video and alarm system. Total loss with the robbery he believed was around $54,000. Unfortunately insurance does not cover a lot of that--for cash only up to $5,000. Councilmember Bolkcom asked if that was reported to the Police Department. Mr. Bisek replied, yes, and to Anoka County. They did an investigation. That put them in quite a financial burden. They had just finished the run of the "Odd Couple" and were looking at buying rights to another play. It is very expensive and complicated, so they made the decision to put the dinner theater on the back burner mainly for financial concerns. So the room pretty much stayed empty. They were trying to do some Christmas parties, wedding receptions, and more banquet type operations out of that room, staying within the parameters of the City's requirements. He said he is well aware of the 60/40. They had some success with that but then obviously after the first of the year there was not a lot of call for Christmas parties. Trying to recoup their financing with just operating the pub side was very difficult. Councilmember Bolkcom asked what happened from January to July. When did Klub Africa/Zanzibar start happening? Mr. Bisek replied he believed some time during March he was watching a Brooklyn Park council meeting. Zanzibar was in front of their council, and it spiked his interest. He saw the issues they were having with the City of Brooklyn Park At the same time he was just starting to deal with some health and personal issues. He approached the gentlemen at Zanzibar with the idea of the property in Fridley. He did some background on them by going back and reading some Council minutes from Brooklyn Park and there were no police or crowd problems with what they were doing. Their business plan included food, and it was a lounge and restaurant type thing. He was assured the African community was a very peaceful community. He thought it might be a good fit. Councilmember Bolkcom asked if he had contacted the City of Fridley at all. Mr. Bisek replied, he did not. Councilmember Bolkcom asked why. Mr. Bisek replied, well, he was aware of the fact that their initial business plan was a dinner theater. In talking with the gentlemen with Zanzibar initially, there were talks of weekend soccer tournaments where they could do food banquets for them. He made them very aware of the 60/40 food and alcohol ratio. He did not think it was an issue and thought he would come to the City with it when it was time to transfer the liquor license. FRIDLEY CITY COUNCIL MEETING OF AUGUST 11, 2008 PAGE 12 Councilmember Bolkcom asked what did he contact Zanzibar with in February or March. Mr. Bisek said he contacted them with his initial offer that he had a piece of property they might be interested in buying. Councilmember Bolkcom asked what happened after that. Mr. Bisek replied about three weeks or a month later, one of the partners in the group contacted him, and they told him they were interested. He showed them sales figures for Baggan's Pub, started working on the financials for it, and got to the point where the attorney drafted up a purchase agreement. Along with the purchase agreement was an employment contract where he would work for them to help with the transition and make sure that all the criteria with the City of Fridley was met, and that the transition went smooth. Councilmember Bolkcom said so that was in about April, 2008. Mr. Bisek said the end of April. Councilmember Bolkcom asked what happened after that. She said she was trying to get them up to 7uly as far as activity at his pub and how things were handled there. Mr. Bisek replied, through the month of May was more attorney discussions, paper going back and forth, a down payment was received, and then they got to the point where they were ready to move their night from Brooklyn Park over to Fridley. That actually happened the last weekend of May. He saw no reason why not, they were in the transition of the sale. He was still in complete operation and the liquor license was still in his name. So ultimately, he was responsible for anything that happened on the property up until today. Councilmember Bolkcom asked him to explain "move their night over." Mr. Bisek replied they had a Saturday night that they were doing at Brooklyn Park It was kind of their African dance type of a night. So they started notifying their clientele they were moving their location over to Fridley. They continued to operate that Saturday night through June. He was working with them with issues with security and making sure everything was being done properly. Councilmember Bolkcom asked so at that time who was serving alcohol at his establishment. Mr. Bisek replied, his employees. Councilmember Bolkcom asked if there were any employees from Klub Africa or any bartenders who were employed by Klub Africa who were serving and working in the capacity of management. In other words, checking at the door for ID's and that type of thing. She asked if they were employed by his establishment. FRIDLEY CITY COUNCIL MEETING OF AUGUST 11, 2008 PAGE 13 Mr. Bisek replied, yes, he had Antonio who is present tonight managing that room for him and who was employed by Baggan's Pub. Klub Zanzibar did want to bring in their own security, and it was an issue that he had with them. So they were doing their security, but he was bringing some of his security in, too, just to make sure everything was being done properly, IDs were being checked, and there were no other issues. Councilmember Bolkcom asked him if at any time he thought he should have notified the City of Fridley that this was all taking place, or because he still owned it and operated it and managed it, he did not feel it was necessary at this point. Mr. Bisek replied, he really did not. They were getting so close to having the paperwork signed so he was just waiting until the attorneys got finished with their part. Councilmember Bolkcom asked, so is it fair to say that anyone who worked in that establishment, other than some of the security, were employees of his. Mr. Bisek replied, yes. Councilmember Bolkcom asked so anyone serving liquor, any bartender, any waiter or waitress were all employed by Baggan's Pub. Mr. Bisek replied, yes. Councilmember Bolkcom asked never at any time was there anyone from Klub Zanzibar or Klub Africa or Zanzibar Klub doing anything other than security. Mr. Bisek replied, no, there were a few people they were trying to train to learn their computer systems, and their policies and procedures to become employees. Councilmember Bolkcom asked so were they taking money, orders for drinks, serving food, or doing that kind of thing while they were being trained in. It seems like there could have been some crossover of employees. Mr. Bisek replied, no. It is very normal in the process of hiring someone and then training them. Councilmember Bolkcom asked if he was training them as Baggan's Pub employees. Mr. Bisek replied, yes. They were being trained to come in and then would be part of Baggan's payroll. They have a 60-day right of refusal policy in their handbook. Councilmember Bolkcom asked so at any time, even today, anyone who appears to be working there, they could check over his payroll and they would be there. Mr. Bisek replied, yes. Councilmember Bolkcom asked if he was there the night of the activity. FRIDLEY CITY COUNCIL MEETING OF AUGUST 11, 2008 PAGE 14 Mr. Bisek said he was not. Councilmember Bolkcom asked him when was he aware of what happened that night. Mr. Bisek replied, his son, Jeremy, who was present tonight, was working that night along with Antonio. He has been his second set of eyes when he is not up there so they communicate quite often. He talked with him Sunday morning and he mentioned they had a little incident in the parking lot. Councilmember Bolkcom asked a"little incident." Mr. Bisek replied, that is what he said, too, when he finally found out. Jeremy said there were a lot of people in the parking lot. He did not really tell him enough to alarm him. The Tuesday morning following the incident, he got a call from Deb Skogen informing him of the incident and informing him of a meeting that they needed to have. Councilmember Bolkcom asked if he also received a certified letter. Mr. Bisek replied, not at that time. He received the letter the following day. He said he told Deb he would get back to her and called his son about the incident. In their defense, they never left the building. They were making sure the building inside was secure, that all customers were out of the building, and that there was only staff inside the building when the altercation was going on outside. One of Chief Abbott's officers did come inside the building and check to make sure it was just staff in the building and that everything was okay inside the building. So they were not outside and did not see what was going on. Councilmember Bolkcom asked if that was routine not to have any security outside. Mr. Bisek said they did have security outside at the time of the incident. Mr. Love can speak a little more to this because when the officer came inside he asked Mr. Love to go outside and identify all the security people who were outside. He identified them all, and the officer asked them to have all the security come inside; and that they were going to take of everything outside. Councilmember Bolkcom asked would they normally do something like that when there is that kind of activity outside, with that many people outside, or any other type of activity. Is that normally something that should have been reported? Mr. Bisek replied, he does agree it should have been reported. They do have processes in place where if there are incidences there are reports that are written up that do get to his attention. They have never had anything to this e�tent of a problem. Councilmember Bolkcom asked so once he was aware of it, what has he changed about what he does there. Mr. Bisek replied, the first step they took was they immediately locked the doors to Zanzibar FRIDLEY CITY COUNCIL MEETING OF AUGUST 11, 2008 PAGE 15 doing their Saturday night there. Councilmember Bolkcom asked about the sign and what it said. Mr. Bisek replied, he believed it said, as per City request, Klub Zanzibar will no longer be operating at this location. Early in the week he had called Deb Skogen and asked her if he could get something on City letterhead stating that, just to put more teeth into the signage to avoid problems. He notified the gentlemen from Zanzibar. Councilmember Bolkcom asked what did Ms. Skogen say when he called her? Mr. Bisek replied she did not think it was a good idea, but thought that notifying them that they were not going to be operating there was a good idea. Councilmember Bolkcom said he never received any letter from the City of Fridley. Mr. Bisek replied, no. He said he would just put up their own signs. They put them up. That night he believed they had eight of their own security people at the building to make sure to let any patrons for Klub Zanzibar know they were no longer operating there. Councilmember Bolkcom said when he says, "operating there," she gets a little confused because she is hearing him say that everyone who was employed and working at his establishment were Baggan's Pub employees. Mr. Bisek replied, that was customers. The clientele would be coming out and expecting to have dance music. It was just to notify them. Councilmember Bolkcom asked so they could still come to his establishment? Mr. Bisek replied, yes, they could have come into the pub side. It was just that the north end of the building was locked up. Councilmember Bolkcom asked, so has it been closed since the situation that happened there on July 27. Mr. Bisek replied, yes. The signs were put up. Councilmember Bolkcom asked so where do we go from here. Mr. Bisek replied, he has had a lot of discussions with Jeremy and Antonio. The building is still for sale. The gentlemen from Zanzibar still have every right to purchase the property, but they do not have every right to run the type of venue that he believed they wanted to initially run there after this incident. Councilmember Bolkcom asked so when he says run, he means basically to bring in their music, and bringing in their music would bring in their clientele. FRIDLEY CITY COUNCIL MEETING OF AUGUST 11, 2008 PAGE 16 Mr. Bisek replied, yes, or if they could somehow prove that running that type of venue is not going to cause problems. If he could explain something to show he really felt confident this was going to be an organization that would be able to run without any problems, back in the first part of maybe even the middle of July, he was helping them coordinate an African festival in the parking lot. It is a festival that has gone on for a number of years. Councilmember Bolkcom asked in the Baggan's Pub parking lot. Mr. Bisek replied, yes. He called Deb Skogen to ask about ordinances and what they would have to do, because when the festival people first approached them, they were basically a month out. It was actually scheduled to be this weekend. There is no alcohol outside. There would be food vendors with different types of cultural foods and some bands. It would be a very family- oriented event that went on during the day on Saturday. Part of their plan was to keep the Baggan's Pub side operating as is and do more of the African-type stuff on the north end of the building. Councilmember Bolkcom asked Mr. Bisek if he is aware of Chapter 603 and delinquent taxes related to bond issues and his liquor license. Mr. Bisek replied, he was aware of the delinquent taxes. For the taxes for the second half of 2007, he thought that payment was made. Apparently it was returned from the bank. He was not aware. Councilmember Bolkcom asked how long ago that was. Mr. Bisek replied, Deb just informed him of that when he met with her. Councilmember Bolkcom stated that was for the second half. He was well aware of the first half of this year. Mr. Bisek replied, for this year, yes, he has not paid that yet. Councilmember Bolkcom asked if there were any employees from the other establishment, Klub Africa, not working as employees of Baggan's Pub, does that violate what originally was established back when Baggan's Pub received their liquor license. Attorney Knaak replied, it could. It depends on the nature of the relationship and the ownership. If you have two entities operating there, that would be a violation. One of the issues is whether, for example, as you are doing the revenue calculations what, if any, revenue is being generated by the dinner theater. He thinks originally the plan was the food sales in the dinner theater would count towards the license. But this was all part of the very specific agreement. Attorney Knaak stated part of the issue of the ownership questions is revenue. In the initial police reviews and reports of the incident, there were a number of interesting admissions including, he thinks from the owner's son who indicated to a police officer that Klub Africa put FRIDLEY CITY COUNCIL MEETING OF AUGUST 11, 2008 PAGE 17 down some money and they pay the mortgage on the north half of the building. The liquor is sold under Baggan's liquor license with Baggan's bartenders, and Baggan's gets all the profits from the liquor sales and a percentage of the door fee to get in which evidently was $10 to $15. Some revenue arrangement must have been made with the new entity. How that would be calculated and factored in are all things that are ordinarily considered at the application phase. Attorney Knaak said someone on site had spoken to a manager (again, these are statements made to the police) that the room is leased to Klub Africa, the same people who own Klub Africa in Brooklyn Park, security is from Klub Africa, and the manager works for Klub Africa. This is relevant, because there are very specific regulations about who regulates a license. There were other observations and admissions that bartenders are from Baggan's Pub, our club gets busy at midnight, observed no people under 21, and it appears the beer girls with the tubs are from Klub Africa. This was actually over the course of several evenings. Another evening when they went there they reported that the north half is leased out to Klub Africa, and they use Baggan's liquor license, the bartenders on the north end of the building, otherwise known as the Klub Africa. A police officer observed that the manager of Klub Africa was always checking in with the bartenders and bouncers of the sports bar, and even told the sports bar bouncer, just to do his job and not to worry about anything else as some people with no identification were attempting to get in but were rejected. Attorney Knaak stated these observations from the police officers and admissions all raise very significant questions with respect to the issues that are normally resolved before an application is even granted. There appear to have been changes since the application and there is an indication that there was a significant change in management, and that is the basis for our review. He asked how the revenue sharing was supposed to occur. He asked Mr. Bisek was he receiving funds based on cover charges. Mr. Bisek said to clarify this, when he is speaking of the managers, he certainly believed and was 99.9 percent certain of this is that it was the new owners. Councilmember Bolkcom commented, "potential" new owners. Mr. Bisek replied the potential new owners were there during the evening. They were there as potential new owners overseeing things. Councilmember Bolkcom asked, what does he mean by overseeing things? Mr. Bisek replied just being there and being a part of the business they wanted to purchase. They were not to be giving any direction to his staff and not in any way give any direction on how things were going to run. They had numerous meetings where he would tell them we have to do this, we have to do this, and they wanted this. As far as all the money generated on the Saturday nights they were over there, all that money was going into Baggan's account. It was all accounted for. They were not paying him a lease. Starting June 1, he said he was keeping books that would have been more specifically for them to learn the business. As far as any of the liquor purchased and all the employees, that was all through Baggan's. FRIDLEY CITY COUNCIL MEETING OF AUGUST 11, 2008 PAGE 18 Councilmember Bolkcom asked so there was no revenue sharing at any point up to now? Mr. Bisek replied, no. Councilmember Bolkcom asked so that is a perception by some of the people that were interviewed by our police officer. Mr. Bisek replied, yes. Attorney Knaak asked him if he was aware that people who are in management at these kinds of facilities have to be licensed managers. Mr. Bisek replied, in Fridley, yes. Attorney Knaak said so he is saying that none of these people who were identified as managers were managers in the sense of the Fridley ordinance Mr. Bisek replied, technically, yes. When the license came up for renewal, they would have been added to the manager list that is required by Fridley. Attorney Knaak said but he agrees that they were the people who the officers were in there talking to. Mr. Bisek replied, correct. Attorney Knaak stated and certainly some of the staff people were thinking they were managers. Mr. Bisek replied, because he has never been one big on titles. He does not even like calling himself an owner. He does whatever needs to be done. He always thinks titles are a convenient tool for people to hide behind. Attorney Knaak said but he certainly understands that Fridley has these requirements in its ordinance he has to comply with. Somebody said there was a cover charge of about $10 to $15 to get in. Was that ever the case that he is aware of? Mr. Bisek replied, yes, $10. Attorney Knaak asked if Baggan's received that money? Was it in a separate account somewhere so it can be accounted for when he does his report? If the City were to come in and look at his books would they be able to see that as separate revenue? How is it accounted for? Mr. Bisek said it all goes in the same account but the ledger shows door money. In the journal, it is put in there as door money. Councilmember Bolkcom stated it seems like the water got pretty muddy there. There were FRIDLEY CITY COUNCIL MEETING OF AUGUST 11, 2008 PAGE 19 potential owners coming in, sometimes Mr. Bisek was there, sometimes Jeremy was the manager and someone else was the acting manager. She thinks they are pretty clear that there are steps to go through in being a manager where there is a liquor license. She can see where some of the employees of Baggan's could be a little confused. Most of those people at one point would have been in your establishment--350 people or even 100 additional people that were coming over at a certain time of night. Mr. Bisek stated that one particular night was an exception to the rule as far as the amount of people. Also, when you do a sale like this you try and keep it quiet. Councilmember Saefke said it was his understanding that Mr. Bisek had control over both sides of his business. Mr. Bisek replied, yes. Councilmember Saefke asked who hired the band. Mr. Bisek replied, it was a DJ. Councilmember Saefke asked who hired the DJ. Mr. Bisek replied it was a DJ that Klub Zanzibar was using at Brooklyn Park. Councilmember Saefke said so they hired him. Where did the money come from to pay the DJ. Mr. Bisek replied, from the door money. Councilmember Saefke asked which came out of Baggan's Pub. Mr. Bisek replied, yes. Councilmember Saefke asked, so the money came from Baggan's Pub but he did not hire the DJ. Mr. Bisek replied, it was their DJ. He interview the DJ. Councilmember Saefke said it seems that Mr. Bisek is trying to make it sound like he was in total control over both sides and that is the way it should have been under his liquor license. It seems, however, that Klub Zanzibar or Klub Africa was of operating under their own steam. They hired their own entertainment and they had their own bouncers. The thing that bothered him reading the police report is that there was not a whole lot of help from the bouncers during the major altercation. Mr. Bisek replied, correct. Councilmember Saefke stated that concerns him a lot. If you have bouncers they are supposed FRIDLEY CITY COUNCIL MEETING OF AUGUST 11, 2008 PAGE 20 to keep order and get rid of people who are creating problems before they become major problems. Apparently it became a major problem because the bouncers were kind of ignoring the problem and that took officers off the streets that they are supposed to be protecting and concentrated them on one location. Thirty-seven squad cars is an entire fleet. He does not want to see that happening any longer. Sha� was down there at one time and that created a big problem. Even though he was not on the Council when Mr. Bisek's license was being promoted, he sat out there listening and he thought it was made very, very clear that we did not want another Sharx there. Mr. Bisek replied, and it was the last thing in the world that he wanted, too. Councilmember Saefke stated he does not think even at Sharx they had 37 squad cars there. He asked Chief Abbott if they had. Chief Abbott replied, there were nights at Sharx where they had many, many squads and he would say they were probably approaching numbers in the 30's. Councilmember Saefke stated which was unacceptable then and is unacceptable now. Mayor Pro Tem Barnette asked if Rum Runners was currently open. Mr. Bisek stated, he believed it was, yes. Mayor Pro Tem Barnette asked, and Klub Zanzibar is still operating there. Mr. Bisek replied, he believed so, yes. Mayor Pro Tem Barnette asked if they close there at midnight? Mr. Bisek replied, to the best of his knowledge, they only have a 1 a.m. liquor license. Mayor Pro Tem Barnette stated it sounds like the altercation on July 27 happened at the 2:00 a.m. closing time. He asked whether the 200 to 300 people in the parking lot had been in attendance at Klub Zanzibar in his building prior to that or did the altercation just take place in the parking lot. Mr. Bisek said he believes they were inside the building beforehand. Mayor Pro Tem Barnette stated and they had no problems inside? The problems occurred outside? Mr. Bisek said it is his understanding that as people were leaving, one girl took another's cell phone. After that, he was not sure what happened. Mayor Pro Tem Barnette asked if the majority of those people involved in the altercation were outside. They had been in the building let's say from 10 o'clock or whatever time period and FRIDLEY CITY COUNCIL MEETING OF AUGUST 11, 2008 PAGE 21 nothing went on inside. Antonio Love, Champlin, Minnesota, replied, in both sides and not one incident occurred. Mayor Pro Tem Barnette asked and it occurred as they were leaving. Mr. Love replied, to the best of his knowledge, it was at the southwest end of the parking lot. Mayor Pro Tem Barnette asked Mr. Love if he was outside at the time of this activity. Mr. Love replied, he was indoors at the time, doing their end of the night activity. He heard police cars, went to the door, and realized there were police officers all over the parking lot. At that time most of their security guards were escorting people out. One of the officers had instructed him to talk to the officer who was in charge at the time. At the time the officer asked him to identify their security guards. He believed they had 12 security guards that night and identified them with security t-shirts from the Zanzibar side and 2 from the pub side with red security hats on. At that time, the officer instructed him to take their security staff and bring them back inside. One of the officers asked to do a walk-thru at about 2:20 a.m. Officers walked around the entire facility and said everything was clear. They asked him to identify all the employees which he did. They then went outside to continue to control the situation. Councilmember Bolkcom said the security guards were from Zanzibar, and they were all employees of Baggan's Pub and some of them were working on one side versus the other. Mr. Love replied, yes. Councilmember Bolkcom asked if it was their normal routine to have their security guards outside if there was some activity going on. Mr. Love stated at 2 a.m. they turn the lights on and usher people out the door. They make sure two security guards are posted at their exit points and try to confiscate any and all bottles that are being taken out of the building. That is first and foremost. Everyone else is outside escorting and ushering people to their vehicles and trying to get them out of the parking lot. Councilmember Bolkcom stated the activity sounds like it might have been escalating. She asked if someone would have contacted the manager. Mr. Love replied, they were trying to control the situation as best as they possibly could. When the situation escalated, which happened relatively quickly from 2:00 until 2:20, someone came and got him and told him there was a large fight outside. Councilmember Bolkcom asked what type of activity they would have called the police about. Mr. Love replied, if there were any activities that they could not separate or have people go on about their business. If there were lingering issues or if there were any fights where they felt they needed to detain someone for the police. FRIDLEY CITY COUNCIL MEETING OF AUGUST 11, 2008 PAGE 22 Councilmember Bolkcom said so you do not normally or routinely instruct your security guards not to call the police because you do not want any trouble. Mr. Love replied, he does not instruct them. If there is ever a situation where they have to call the police, they do it without hesitation. Councilmember Bolkcom asked so what about the comment, "Do not call the police because we can get in trouble?" Mr. Love replied, up until the incident that happened that particular day, he has never heard that comment. He did not hear it until he got the report that Mr. Bisek had. Attorney Knaak stated to Mr. Love, there were 12 security people and they were all Baggan's employees and 2 were on the Baggan's side and 10 were on the Zanzibar side. Who was in charge of that security? Mr. Love replied, the Zanzibar owners had a gentleman by the name of "Jeffl' who represents their security staff. He does not know his last name. Attorney Knaak asked when they are talking about the 10 people as Baggan's employees. Mr. Love replied, they were contracted to Baggan's. Attorney Knaak asked, okay, but they were at least originally Zanzibar employees? Mr. Love replied, they knew the crowd better than our security staff did. Attorney Knaak asked who Jeff answered to. Mr. Love replied, he answered to himself and the owners of the company of Zanzibar. Attorney Knaak asked who was the on-site manager. Mr. Love replied, he was acting as the manager. If there were any questions or anything, Mr. Bisek had instructed him to be the go-to person. Attorney Knaak asked if the security people had any questions, who had the final authority. Mr. Love replied either himself or one of the gentlemen who was representing Zanzibar who was constantly there on a regular basis. Attorney Knaak asked if there was any disagreement, who was the final decision-maker, or did he have 100 percent vote. Mr. Love replied, he would be. FRIDLEY CITY COUNCIL MEETING OF AUGUST 11, 2008 PAGE 23 Attorney Knaak asked if there were any other conflicts that night. Mr. Love replied, none inside of the building and none he was made aware of until after 2:00 a. m. Attorney Knaak asked if there were any problems in terms of direction of personnel. Mr. Love replied, no. Councilmember Bolkcom asked if they were to go back and look at the liquor license for Baggan's Pub, is he listed as a manager. Mr. Love replied, he believes he is now, yes. Councilmember Bolkcom asked "now" meaning? Mr. Love said as of June 17 or July 17. Councilmember Bolkcom asked about the conflict with the two sides. Mr. Bisek replied, when they talk about the Klub Zanzibar side and the Baggan's side, that is just more of a demographic. It is a distinction between the employees as to okay, you are working the pub side tonight or you are working the Oops side tonight. Councilmember Bolkcom stated some of these people were subcontracted from the other club, so do they operate under your rules or the other club's rules. Mr. Bisek stated they operate under his rules and in fact with the new possible ownership, one of the things he had been talking with them about is to establish an employee manual with policies and procedures for all employees to follow. Councilmember Bolkcom asked Mr. Bisek whether he had an employee handbook when he subcontracted these security guards. Mr. Bisek replied he does not have a specific one for security because they have not had a need for it. Councilmember Bolkcom asked does he have one for all his employees. Mr. Bisek replied, yes. Councilmember Bolkcom asked so the security subcontracted from Zanzibar, they were aware of your guidebook or whatever you want to call it that your own employees on a regular basis see. FRIDLEY CITY COUNCIL MEETING OF AUGUST 11, 2008 PAGE 24 Mr. Bisek replied, more likely not. One thing that he was working with Antonio with was putting together an employee handbook for security. That is something he has not had issues with. All the security they have is very experienced. There are background checks done, they come with resumes, but he still understands they need a handbook Mr. Love had a meeting set up with all their security staff for he believed the Wednesday after the 27th so that everyone would know what he expected from security. He said he needed to clarify that under the list of managers on his liquor application, Mr. Love is not currently listed. He was going to add him to the list when the renewal process happened. Councilmember Bolkcom asked if he was aware of the policies related to liquor managers. Mr. Bisek replied, not in specifics. Councilmember Bolkcom asked Mr. Bisek who is responsible for knowing what he should and should not be doing? Mr. Bisek said he was. Councilmember Bolkcom asked what he planned to do from this point. He is not operating at all under the liquor license he had applied for. Mr. Bisek said he is responsible for everything that has happened in the past and everything that will happen in the future until there is a change in ownership. Any mistakes that have been made ultimately are his responsibility. Right now they are just operating the pub side. As far as the north half of the room, they have been looking at other options. If the gentlemen from Klub Zanzibar want to continue on with the sale of the property, then the City will be speaking to them as to what their business plan is going to be and what they want to do with the property. Looking at the fact the sale might not happen, he needs to determine what they can do to generate enough income to be a viable business at that location, because just running the pub side does not generate enough income to make the business not only profitable but for the business to succeed. Councilmember Bolkcom asked when his taxes would be paid. She said they are both delinquent at this point. Mr. Bisek replied the 2008 does not have to be paid until October 15. Mr. Pribyl replied, both are actually due. Mr. Bisek replied, he should be able to have both taken care of within a couple of weeks. Councilmember Bolkcom said she wanted to make sure the representatives from Zanzibar who are here are very aware that this is Mr. Bisek's establishment, his liquor license, and they cannot operate under his liquor license. If they buy the establishment they still have to come before the City Council for their liquor license. FRIDLEY CITY COUNCIL MEETING OF AUGUST 11, 2008 PAGE 25 Mr. Bisek replied, correct. Dr. Burns stated there was apparently a substantial sum of money placed in Mr. Bisek's hands by Klub Zanzibar and there is some sort of contractual relationship regarding their use of the north end of the building. Mr. Bisek replied there is nothing contractual about them using the north end of the building. The only paperwork that was drawn up was for the purchase of the property. Dr. Burns asked so the down payment does not compromise his ability to control the north half of the building? Mr. Bisek replied, no, but said he though that was a question for the attorneys. Councilmember Varichak asked him how often he was at his establishment. Mr. Bisek said he was down to about 40 hours a week. Councilmember Varichak asked when Zanzibar was coming in on Saturdays, was there an entrance for them to come in and an entrance for Baggan's side to come in. Mr. Bisek replied, yes, there are two different entrances. Councilmember Varichak asked and there was crossover. Mr. Bisek replied they could eat on the other side also. Councilmember Varichak asked how many people does that place hold? Mr. Bisek asked, the north side? Councilmember Varichak replied, yes. Mr. Bisek replied, about 400. Councilmember Varichak asked so it was not uncommon to have 400 people? Mr. Bisek replied, they have never had a crowd that big. That night was an exception. Councilmember Varichak asked is the music played steady all night or are there breaks. Mr. Bisek replied, he does not know. He was never involved. He was never in the room when they were operating. Councilmember Varichak asked so he had negotiated this company to come in and do Saturdays and he never ever went one time to that establishment when they were there. FRIDLEY CITY COUNCIL MEETING OF AUGUST 11, 2008 PAGE 26 Mr. Bisek replied, it was set up as a sale and he is not a big nightlife kind of a person. He relied on reports from Mr. Love and Jeremy. Generally, the crowd would not show up until 11:30 or 12:00. Councilmember Varichak stated she is just curious because he looked for an establishment to come into his facility to help with money and then did not even go and see them operate. Mr. Bisek said he was relying on the Council minute meetings from the City of Brooklyn Park and reports from their police department as to any issues or problems they were having over there. Dixon Allebay, 2101 — 82"d Avenue North, Brooklyn Park, Zanzibar d/b/a Klub Africa, said he wanted to follow-up on some issues. Mr. Bisek was aware when he was applying for this license, what the building would be used for. He received some information from the City Clerk that said they told Mr. Bisek he should not operate a night club or anything like Sha�. Councilmember Bolkcom said they do not have liquor establishments. The City has establishments that have liquor licenses to sell intoxicating beverages. The City has a food-to- liquor license ratio. They are not treating Mr. Bisek any different from any other establishment that sells intoxicating liquors. Related to the managers, it is very well spelled out what needs to be done to be a manager. She said she believed it was outlined in Chapter 603. She asked him if he was in the parking lot the night of the incident. Mr. Allebay said he was. Councilmember Bolkcom asked him if he would say there was peace in that parking lot. Mr. Allebay said with 300 people coming out at one time, definitely there could be crowd worries. Councilmember Bolkcom asked and whose responsibility is that to control that crowd.? Mr. Allebay said their security. Attorney Knaak stated this gentleman is not actually the licensee and the information he has provided has some relevance in terms of the occurrences of that evening. He said he does not know if there is any additional relevance with respect to this hearing and he does not know if they want to get ahead of themselves when he really does not have an application before them. Councilmember Bolkcom stated wanted to make sure that Mr. Bisek and the representatives realized that the liquor license still is in Mr. Bisek's hands and it should be controlled by him. Attorney Knaak stated there have been a number of factors that have been raised for staff analysis, questions that require further accounting, further examination of books and records, and some additional investigation to fully complete this record before they make a decision. FRIDLEY CITY COUNCIL MEETING OF AUGUST 11, 2008 PAGE 27 Mr. Pribyl stated based on the investigation they need to actually conduct with the license holder, it should probably be tabled for possibly two more meetings. He said he would actually like talk with whatever accounting firm or CPA they actually use and work with that individual to see what kind of records they have. Attorney Knaak stated the City does have the authority to access and review any and all information, books, or computer sheets. It is one of the conditions that municipalities are authorized to do. What is unusual is a circumstance like this where an event precipitated what would normally be a routine pattern of reporting. The City does have the authority to request the information necessary to properly reinforce it. Councilmember Bolkcom said they also need to clear up the matter of the managers, the bond forfeiture, and the fact that within two weeks, the delinquent taxes would be paid. Dr. Burns asked Attorney Knaak if they have the ability to ask Mr. Bisek if he does choose to open up the north end of the building that he advise our Police Department of that decision. Attorney Knaak replied, that would be a very good idea. But right now he has the authority to operate a liquor license there as it was originally granted. So, for example, if something like the dinner theater came in, he would have the authority under the current license to do that. MOTION by Commissioner Bolkcom to continue the public hearing until September 15, 2008. Seconded by Commissioner Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR PRO TEM BARNETTE DECLARED THE MOTION CARRIED UNANIMOUSLY. NEW BUSINESS: 6A. Approve the Minutes of the City Council Meeting of July 28, 2008. Councilmember Bolkcom said on page 8 of the minutes she had asked what "muck" was and Mr. Kosluchar told her what it was. She does not think the minutes reflect their conversation. She would like staff to review the tape from the meeting. MOTION by Councilmember Bolkcom to table the approval of the minutes until the Council meeting on August 25, 2008. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR PRO TEM BARNETTE DECLARED THE MOTION CARRIED UNANIMOUSLY. 1. Receive Plans and Authorize Advertisement for Bids for the 85t'' Avenue Trail Project, City of Fridley Project Number ST2008-03. Councilmember Bolkcom asked if they have seen the plans for this project. She saw them a FRIDLEY CITY COUNCIL MEETING OF AUGUST 11, 2008 PAGE 28 long time ago and there was a lot of discussion. She asked if it would hold up if this was tabled. Mr. Kosluchar said if there is an interest in reviewing the plans he would be glad to sit down with her. It is more a practicality that they do not include the plans which are about 40 sheets in the agenda packet. He also thinks there is some flexibility in the schedule. If Council wants to review the plans and review this item at the ne�t meeting that would be fine. Councilmember Bolkcom stated there has been a lot of discussion and part of her concern is they have talked about Anoka County and where they wanted to build the trail because they plan on e�tending every county road they have in our community. She guessed the other issue is related to Coon Rapids. She would like to see a plan and what it is going to look like. Dr. Burns stated he is just concerned with the loss of federal money. If they put this off to go out for bids they lose the money for the project. Councilmember Bolkcom stated the project would be advertising for bidding not until September 4. Mayor Pro Tem Barnette suggested that they bring this back at the August 25 meeting. Dr. Burns stated that is fine as long as Mr. Kosluchar is sure we are not going to jeopardize our money. MOTION by Councilmember Bolkcom to table this item until August 25, 2008. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR PRO TEM BARNETTE DECLARED THE MOTION CARRIED UNANIMOUSLY. 2. Receive Plans and Authorize Advertisement for Bids for Commons Park Water Treatment Plant Improvements, City of Fridley Project No. 379. Councilmember Bolkcom stated she has been asked why they had not been replacing these filters. Part of her response was that she did not think they had the money at that point and the ability to raise the money and have to actually go out and bond. She asked if they were all kind of put in at the same time because it said they last 15 to 20 years. She asked if that was something they would normally have put in some type of capital improvement plans over the years. Councilmember Saefke said when he was still working in the Water Department, they redid Filter Nos. 6 and 7 to make them more efficient. At that there was not enough money to replace the filter media and the first five filters. They were all replaced at the same time, so their useful life is used up right now. He noticed that the estimate for the cost is a little bit above what the engineer decided; however, on the painting of Water Tower No. 2 at Highway 65, we are $300,000 less than the original estimate of $1.1 million so he is not too concerned about the $27,000 e�ra as far as cost is concerned. FRIDLEY CITY COUNCIL MEETING OF AUGUST 11, 2008 PAGE 29 Councilmember Bolkcom asked if someone could explain retrofitting. Mr. Kosluchar said they are not really sure what the cost is going to be to maintain that air system. If the price comes in fairly low, they may go with maintaining the system. Initial indications are that it is too expensive to continue. They did not keep that system in the initial two-filter retrofit. Councilmember Saefke stated since his tenure in the Water Department, a new type of filter media has been developed. He thought the idea of leaving the air system in place was that someday, if you needed the air system, you still have it. Councilmember Bolkcom asked when they get the bids, will they have a better idea of what the cost will be. Mr. Kosluchar replied, actually staff is working on that right now in preparing the bids and are going to evaluate them when they come in. Councilmember Bolkcom asked what it did for her water at home. Mr. Kosluchar said saving power and time is more efficient. The main emphasis is going another 20 years. Dr. Burns stated he thinks the filter media that is there now is not really filtering the water effectively. So they should improve the quality of our water by replacing the filter media. MOTION by Councilmember Bolkcom to receive the plans and authorize advertisement for bids for Commons Park Water Treatment Plant Improvements, City of Fridley Project No. 379. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR PRO TEM BARNETTE DECLARED THE MOTION CARRIED UNANIMOUSLY. NEW BUSINESS: 9. Informal Status Reports Councilmember Varichak commented on National Night Out. They had a lot of neighborhood parties. She thanked the supporters and staff for a great job. Mayor Pro Tem Barnette stated he has the honor of being on the Northstar Corridor Development Authority Executive Board and he attended a meeting last Thursday. They have been working very hard for the last 11 years to get the Fridley station. He credited Steve Billings who did a lot of work before he did. They received word last Thursday from the Federal Transportation Administration that Fridley does now have the authority to open their station, along with the other five stations. It looks like we will get the Fridley station operating in November of 2009. FRIDLEY CITY COUNCIL MEETING OF AUGUST 11, 2008 PAGE 30 ADJOURN. MOTION by Councilmember Varichak, seconded by Saefke, to adjourn. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR PRO TEM BARNETTE DECLARED THE MEETING ADJOURNED AT 10:24 P.M. Respectfully submitted by, Denise M. Johnson Robert L. Barnette Recording Secretary Mayor Pro Tem