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04/12/2010 - 29293CITY COUNCIL MEETING CITY OF FRIDLEY APRIL 12, 2010 The City Council meeting for the City of Fridley was called to order by Mayor Lund. ROLL CALL: MEMBERS PRESENT: Mayor Lund Councilmember-at-Large Barnette Councilmember Saefke Councilmember Varichak MEMBERS ABSENT: Councilmember Bolkcom OTHERS PRESENT: William Burns, City Manager Scott Hickok, Community Development Director Richard D. Pribyl, Finance Director Debra A. Skogen, City Clerk Don Abbott, Director of Public Safety Fritz Knaak, City Attorney PROCLAMATION: Volunteer Week April 18-24, 2010. APPROVAL OF PROPOSED CONSENT AGENDA: APPROVAL OF MINUTES: City Council Meeting of March 29, 2010 APPROVED. OLD BUSINESS: 1. Second Reading of an Ordinance Amending Chapter 214 Signs Pertaining to Political Signs. William Burns, City Manager, said the State legislature has been amending election laws in the 2010 portion of their session. In addition to moving the primary from September to August, they have also allowed the placement of political signs 46 days prior to primary or general elections. This legislation changes our local ordinance to allow the placement of signs 46 days prior to a FRIDLEY CITY COUNCIL MEETING OF APRIL 12, 2010 PAGE 2 primary or general election as well as for special elections. The first reading of this ordinance was held on March 29. Staff recommends Council's approval. WAIVED THE READING OF THE ORDINANCE AND ADOPTED ORDINANCE NO. 1267 ON SECOND READING AND ORDERED PUBLICATION. NEW BUSINESS: 2. First Reading of an Ordinance Amending Fridley City Code, Chapter 4, Absentee Ballot Board. William Burns, City Manager, stated Fridley adopted an ordinance providing for an Absentee Ballot Board in 2006. The State has recently adopted legislation pertaining to the appointment and duties of absentee ballot boards. Staff recommends Council modify its absentee balloting procedure in a manner that defers to the new State law. Under the new legislation, all absentee ballots must be counted at the City or County level rather than at the individual precinct level. In 2010, the cities in Anoka County will provide staff to count absentee ballots at the County level. We have been told the County will require absentee ballot counting to occur at the City level in 2012 and beyond. Staff recommends Council's approval. WAIVED THE READING OF THE ORDINANCE AND ADOPTED THE ORDINANCE ON FIRST READING. 3. Resolution Approving a Plat, P.S. #09-04, Dahlke Industrial Park, by Greg Dahlke, for the Purpose of Creating Two Industrial Lots, Generally Located at 8170 Hickory Street N.E. (Ward 3). William Burns, City Manager, stated Council approved the preliminary plat at their November 9, 2009, meeting with eight stipulations. Petitioner is now submitting the final plat for Council approval. Staff recommends Council's approval. ADOPTED RESOLUTION NO. 2010-24. 4. Approve Joint Powers Agreement Between the City of Fridley and County of Anoka for the Reconstruction of County Road 132 (85t'' Avenue) and Resolution Requesting Municipal State Aid System Construction Funds for Reconstruction of 85t'' Avenue (County Road 132) William Burns, City Manager, stated Anoka County has completed plans for the reconstruction of this intersection and has scheduled the project for 2010 construction. The project's components include the following (1) Replacement of signals, (2) construction of raised medians on 85th Avenue on either side of Springbrook Drive, (3) separate left and right turn lanes FRIDLEY CITY COUNCIL MEETING OF APRIL 12, 2010 PAGE 3 for each approach to Springbrook Drive, and (4) work on 85th Avenue will e�tend 1,500 feet west of the intersection and 600 feet east of the intersection. Dr. Burns stated staff recommends Council's approval of the Joint Powers Agreement with Anoka County and the Resolution approving the request for MSAS funding. APPROVED THE JOINT POWERS AGREEMENT BETWEEN THE CITY OF FRIDLEY AND COUNTY OF ANOKA FOR THE RECONSTRUCTION OF COUNTY ROAD 132 (85TH AVENUE); AND, ADOPTED RESOLUTION NO. 2010-25. 5. Resolution Requesting No Parking Signs on 85t'' Avenue (CR 132) from Evergreen Boulevard to University Avenue (TH47). William Burns stated in conjunction with the reconstruction of the Springbrook Drive intersection, Anoka County has asked the City to establish "no parking" between Evergreen Boulevard and University Avenue. Staff recommends Council's concurrence. ADOPTED RESOLUTION NO. 2010-26. 6. Approve Change Order No. 5 for the 85t'' Avenue Trail Project No. ST2007-04. William Burns stated the change order components are as follows: (1) Cost of traffic control for installation of BNSF crossing ($385.00); (2) Four additional bicycle racks for the kiosk These were ordered but did not fit due to relocation of other kiosk components ($1,912.07); (3) Cost for an electrical wire way within the kiosk frame ($389.32); and (4) Irrigation repairs for Slumberland property ($2,197.05) Dr. Burns stated the total change order was $4,883.44, and 80 percent of this amount is covered by federal grant. The remainder, $975.69, is being paid for from MSAS funds. Staff recommends Council's approval. APPROVED. 7. Resolution Ordering Improvement, Approval of Plans and Ordering Advertisement for Bids: 2010 Water Main Rehabilitation Project No. 391. William Burns, City Manager, stated Area No. 1 will include the replacement of an 8-inch water main on Mississippi Street between Anoka Street and McKinley Street. The cost estimate for this 700 feet of replacement is $120,000. There have been a lot of water main breaks in this area. FRIDLEY CITY COUNCIL MEETING OF APRIL 12, 2010 PAGE 4 Dr. Burns stated Area No. 2 is a 350-foot section of new 6-inch main from Seventh Street to the Commons Park irrigation system. Currently that system hooks up to three different wells, Nos. 7, 8, and 9. The new hookup will allow for irrigation cost accounting of Commons Park It also serves to eliminate the possibility of backflow of unfiltered water into the main treatment system. The cost estimate for this is $40,000. These costs are included in the 2010 Water Capital Improvements plan. Staff recommends Council's approval. ADOPTED RESOLUTION NO. 2010-27. 8. Claims (145628 — 145789). APPROVED. 9. Licenses. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. APPROVAL OF PROPOSED CONSENT AGENDA: Councilmember Saefke asked that Item No. 9 be removed from the consent agenda. MOTION by Councilmember Barnette to approve the consent agenda with the removal of Item No. 9. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. ADOPTION OF THE AGENDA: MOTION by Councilmember Barnette to approve the agenda with the addition of Item No. 9. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. OPEN FORUM: No one from the audience spoke. OLD BUSINESS: 10. Second Reading of an Ordinance Amending Chapter 30, Lawful Gambling, of the Fridley City Code, Defining Licensed Organizations. FRIDLEY CITY COUNCIL MEETING OF APRIL 12, 2010 PAGE 5 Richard Pribyl, Finance Director, stated concerns have been expressed by Fridley organizations wishing to conduct lawful gambling who have not been able to find an establishment in the City to conduct that gambling. Neighboring cities restrict lawful gambling to their own local organizations. Mr. Pribyl stated staff completed a survey of some of the neighboring communities which showed that seven out of eight cities did actually have their own local restrictions. This change would create a more restrictive requirement by only allowing local organizations a permit for lawful gambling. Also, the change would modify the definition of a licensed organization and the requirements it must meet. It also modifies the requirement regarding the lawful expenditures and changes the percentage from 50 percent to 75 percent of those net funds expended in the trade area for lawful purposes. The first reading of the ordinance was held on March 29. After the Council meeting, staff did mail out informational letters to all currently licensed organizations within the community for the lawful gambling. Staff recommends holding the second reading of the ordinance amending Fridley Code Chapter 30, Lawful Gambling. Shawn Donahue, Spring Lake Park Lions, read the following letter: I am speaking to you tonight on behalf of the Spring Lake Park Lions Club. We received a letter in regard to this ordinance change. We understand you are trying to keep the charitable gaming dollars generated by your City benefiting the residents of your City. We believe you can accomplish it in a better and different manner by allowing the City Council an exemption it deems an organization that benefits the City. Over the past 10-15 years the Spring Lake Park Lions Club has donated over $100,000 to numerous organizations in Fridley. The following is just a short list of that: `49er Days Festival, Central Center for Family Resources, the Fridley Community Center, the Fridley Community Education, the Fridley Memorial Celebration, Fridley 911, Baskets of Hope with the project at Osborne Apartments, the Fridley Youth Baseball, High School Soccer, the Softball, Woodcrest Elementary School, the Fridley Convalescent Home, the Fridley Band, the High School Scholarship, their All-Night Party, their Swim and Dive Team, their Youth Softball Program, bought bike helmets for the Safety Camp, and included the Osborne Apartments in their food drive for food baskets during Christmas. There have also been help for numerous individuals in need of food, clothing, and shelter. That number does not represent the overall money we spent in School District 16 which does encompass part of Fridley. Over that same time period we spent over $1 million in that school district, and they cannot differentiate which is Fridley, Blaine, or Spring Lake dollars. If our Club is not allowed to operate in the City, who is going to supplement the funding for all these programs? If you have a new organization start up, are they going to be starting up to benefit the City and its residents? Are they going to be starting up to benefit a specific clause, i.e., the hockey club, booster club, any type of foundation? Our organization is a service organization, and our motto is "we serve." This means we serve everybody in the community. As far as our charitable gambling dollars go, we FRIDLEY CITY COUNCIL MEETING OF APRIL 12, 2010 PAGE 6 have the most diverse list of recipients of any other club in the area. Although it has been a while since our club has operated a lawful gambling site in the City of Fridley, we do continue to donate to deserving causes within the City. We personally cannot guarantee where every dollar goes, but believe our history speaks for itself. The letter they received stated seven out of eight communities restricted to local charitable gambling organizations. This is incorrect. Blaine does have some restrictions, but they allow the City Council an exemption. They have received one of those exemptions. Mounds View has no restriction. New Brighton has no restriction. They repealed their ordinance on January 12, 2010. It now reads the City will follow regulations set forth by the State of Minnesota. Columbia Heights is a little different. I could not get a straight answer out of their city staff down there because she said it has been so long since an outside organization applied. She said they were a closed city, but they could not tell him where in the City Code this was addressed. We have operated in five of the eight communities used in Fridley's study. We currently operate in Blaine, Spring Lake Park, Mounds View, and possibly New Brighton in the future. We would also like the opportunity to operate in Fridley if that time ever comes. The ne�t item on the proposed ordinance is the removal of the restriction of the number of gaming sites an organization may operate within a city. Going back to the cities Fridley used in its study, those cities restrict the number. So if you are using other cities as a guideline, why was this left out? This is not a good idea for a number of reasons. The No. 1 reason being competition. Competition makes every business and every organization better from the ground up. Right now there are only three organizations that are licensed in Fridley that reside in Fridley. Those being the VFW, the Legion, and the Lions Club. I talked with the two veterans organizations, and they are not actively seeking additional sites. What happens if the Lions Club for some reason loses their license? What are these businesses supposed to do when they cannot find another organization to come in and operate? We hope you will consider adding a section to its ordinance that will allow the City Council and future city councils an exemption if they deem an organization benefits the City and its residents. On behalf of the Spring Lake Park Lions we appreciate the City's time and consideration for their proposal, and our Club looks forward to hearing from you and working with the City very soon. Mayor Lund stated he was the one who brought this forward. From time to time he has heard criticism from Fridley-based organizations that have wanted to do charitable gaming. They have gone to other communities, only to be rejected because they are not based there. He said he is for free enterprise, and thinks it is wrong those communities actually have that restriction. He thinks it should be based on the charitable organization's ability to do charitable gaming. The Lions have a long track record, and if they do a good job that is between the charitable organization and the restaurant/bar. He said he did not think the other communities would change their restrictions, so he thought this would put Fridley at a more level playing field. He asked when staff conducted the survey. FRIDLEY CITY COUNCIL MEETING OF APRIL 12, 2010 PAGE 7 Ms. Skogen replied the end of last year. Columbia Heights does not have it in their City Code. They adopt it by resolution. Mayor Lund stated in Columbia Heights the gaming organization does have to be in existence in Columbia Heights for not less than ten years. Spring Lake Park has a restriction as well. The restriction is by State and that is the trade area. He was opposed to Blaine's restrictions. Originally, he was not really interested in sunsetting any current license holders. His first thought was to keep the license holders that have them here, they could continue on and new ones could not. Any new license applicants would have to meet the new requirements. He has been told that is not legal. Additionally, there are not a lot of places in Fridley. Three of them are already based in Fridley. Three of them currently are not, and they would be a sunset. It is not his intent to create ill feelings. Spring Lake Park Lions and others have all given very generously to different 501(C)(3) organizations in Fridley, and he hopes that would continue. Mayor Lund stated at the Council's first meeting they had several organizations based in Fridley that did speak on behalf of the change because it gives them an opportunity that they feel in the past they did not have. Those that spoke in favor were the Knights of Columbus and the `49er Days Festival Committee. The Fridley School Foundation is interested. Mr. Donahue stated he does not want the Council to have the misconception that charitable gaming is going to be the "end all" or "be all" to some of these organizations. The donations are down for everyone across the state. Donations are going down everywhere, and he does not want anybody to have the misconception that if they get into charitable gambling, it is going to solve all their problems. It will not. Mayor Lund said as long as Fridley organizations are given first crack at it and nobody steps forward. If every other place has charitable gaming in their restaurant/bar and yet nobody steps forward, that kind of restricts that operation. Having that exception is okay with him. It has never been his intent to try and rub out outside organizations that have been very good to Fridley. Mr. Donahue stated they are just looking for the exemption. They understand what the rest of the resolution is trying to do. They would like an exemption put in there if possible. Mayor Lund referred to Attorney Knaak's mention that any amendment between the first reading and the second reading, has to be by a unanimous decision. Fritz Knaak replied, that is correct. If you are in fact going to be amending any part of the amendment itself, an addition would have to be unanimous. Mayor Lund asked with that in mind, we do have one absent councilperson. If the Council were to vote 4-0, is that considered unanimous? Mr. Knaak stated the way he construes that requirement is it would have to be by consensus of all members and, if a member is missing, that would not be possible. FRIDLEY CITY COUNCIL MEETING OF APRIL 12, 2010 PAGE 8 Councilmember Barnette asked Mr. Donahue if the Fridley Foundation Board went into an organization in Spring Lake Park and asked to do business there, would Spring Lake Park let them. Mr. Donahue replied, he did not research their city but the Mayor says it is restricted. Mayor Lund stated in the study it states in Spring Lake Park you have to maintain an address within the city for at least three years prior to application, and you are restricted to no more than three locations within the city. Fridley's is a little more in depth as far as restrictions rather than just an address in the City. We have further guidelines. The organization has to routinely meets, and 30 percent of the membership is within the community of Fridley. Some of those details might even fit the Spring Lake Park Lions. Mr. Donahue replied, not quite. They are about 10-11 percent in Fridley. They do have a quite a few Fridley members in their organizations, and they have members from Blaine, Mounds View, New Brighton, and Coon Rapids. Mayor Lund said he did not know how Council felt about the request for an exemption. Councilmember Barnette stated he had no problem discussing that; however, he would like to see the other cities give them the same benefit of the doubt. Wendy Nelson, Gambling Manager for Spring Lake Park Youth Hockey, stated her concern with the change is they just received their premises permit in April. Their organization is kind of unique because members of their association are members of the school districts, which are Fridley, Spring Lake Park, and Blaine. So they cannot really control how many of them register for hockey and probably only about 10 percent are in the City of Fridley right now. However, they do not just donate to their hockey association, they donate to their high school boys and girls hockey, to scholarship funds, to the All-Night Party, Blaine/Spring Lake Park Fire, and a lot of other organizations. She thinks they are just kind of in that weird pocket and their actual address is in Blaine. Mayor Lund replied his whole premise is it is not where the money is spent. That is not his business, it is up to the charitable organization. It is under the guidelines and restrictions by the State Charitable Gaming Commission. His intent is having this legislative change because Fridley's organizations cannot go outside of the City unless they want to go to a much bigger region. Ms. Nelson replied, she understands but also they have a school in the City of Fridley, the restaurant they are it is located in their school district, and they have received a request from the Fridley Parks & Recreation Department to donate $3,400 for a warming house attendant because that is in their school district. Mayor Lund stated and they might not look favorably on the Park and Recreation's request. FRIDLEY CITY COUNCIL MEETING OF APRIL 12, 2010 PAGE 9 Ms. Nelson replied, they would not be able to do that without this e�tra site. They are the only organization they have requested it from. G. Michael Schrauth, Owner, Broadway Pizza, 8298 University Avenue, stated they are concerned about the change and with not being in compliance. They were interested in finding an organization that was going to operate or have residents who were going to be in the three or five mile distance. He said they would have concerns if they did not have prior experience in gambling because there is more to it than meets the eye. The reason why they probably made a change, was because they needed more activity and they were not experienced in doing additional things and so they looked to somebody who was. He also finds it kind of interesting, too, that the Parks & Recreation Department from the City did ask for money for a warming house from the organization they will be working with. The mention of the 10 percent of the residents for the number in that organization might only represent 10 percent of Fridley residents, he does not know that is going to change much unless more of the ice rinks in Fridley get more involved. After reading the letter, he believes that they are saying there is more activity; and they are hoping there will be more activity to the warming house when that is operating. Mr. Schrauth said he is not sure they are going to be in compliance in a couple of years and there may be some areas that are making that pretty restrictive. He would ask that they reconsider some of the language in so much as the group they are working with is working with the school district which is all three schools, Blaine, Spring Lake, and Fridley. Robert McNeil, gambling manager for the Fridley American Legion, stated they received the letter right before their membership meeting on April 3. He wished he would have had more time to discuss this letter with their membership. He has made some informal inquiries with some of their members with the gambling operation. One of the things they take issue with is the 75 percent of its expenditures for lawful purpose. Right now they are paying 50 percent in their trade area, and Fridley wants to change that to 75 percent. He asked about the veterans organizations they support. Will they be restricted? There is a big need out there. They try to provide as much as they can to their veterans organizations. Mayor Lund replied, the reason that was brought was to get them more into the mainstream of other communities they looked at. In Brooklyn Park, it is 85 percent. In Mounds View, 75 percent. Fridley's is very low, considering some of the neighboring communities. Mr. McNeil stated all he can do is speak for the veterans' organizations. He just wanted to go on record that the Fridley American Legion is trying to help the veterans, and they had to be restricted and have to pay out more for their trade area. Mayor Lund replied they will take that into consideration. Tom Myhra, Fridley School Foundation, said he had three things he wanted to say. First, they are continuing to look at ideas for their pull-tab operation. Second, for the reference about foundations having individual concerns, 100 percent of their money goes back to the Fridley residents. As far as the Foundation itself, their general fund is apart from their subsidiary funds, FRIDLEY CITY COUNCIL MEETING OF APRIL 12, 2010 PAGE 10 and they are looking at about $15,000 a year. They have trouble with the day-to-day costs of operating. They do have 24 subsidiary units and they range all the way from the Fridley Alumni Choir to Football boosters. Last, he has discussed with a lot of people this business of changing so that there will be no restrictions on the number. He said they probably do want to spread it out by limiting the number an organization can have. MOTION by Mayor Lund to table the second reading of the Ordinance Amending Chapter 30, Lawful Gambling, of the Fridley City Code, Defining Licensed Organizations. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY NEW BUSINESS: 11. Approve 2010-2011 Liquor License Renewals. Richard Pribyl, Finance Director, said this a joint agenda item sponsored by both the Fridley Police Department and the Finance Department. Annual license renewals requests have been reviewed by staff. All renewals have provided the necessary fees, insurance, and bonds that support the requirements provided by the City Code. The two on-sale, 3.2 percent malt liquor and wine license establishments have a CPA statement attesting to their gross food sales of 98-99 percent. All on-sale intoxicating liquor establishments have provided their CPA statement attesting to a minimum of 40 percent gross food sales or 30 percent for a restaurant and a bowling center for the year 2009. Just for information purposes, our highest gross food-to-liquor sales is King's Restaurant at 95 percent. Lowest is the Short Stop Fridley at 40 percent. Highest volume of calls is Baggan's Pub at 1.06 calls for service for every $10,000 of revenue. They will recall the Police Department actually created that gauge to provide some performance indicators regarding the number of calls. The lowest volume of calls is for the India House at .002 calls for service for every $10,000 revenue they generate. Mr. Pribyl stated the Police Department has reviewed the renewal applications and conducted the background investigations. Two establishments received a violation for selling liquor on Christmas day which is in violation of City Code. Those being Short Stop and Baggan's Pub. Underage consumption issues have been addressed with Two Stooges Bar and Grill due to failure of one liquor compliance check. Mr. Pribyl said City staff inet with the owners and managers of Baggan's Pub on a quarterly basis to review the type and volume of calls for service due to stipulations placed on the 2009- 2010 license. The calls deescalated after August as required. They did make note of two stipulations earlier that actually do apply to this agenda item. This would be the appropriate time to discuss those. With that staff is actually recommending approval of the liquor license with those two stipulations discussed earlier. Councilmember Varichak said they indicated that King's had the highest numbers of food sales at 95 percent. She noticed that Chris and Rob's was 99 percent. FRIDLEY CITY COUNCIL MEETING OF APRIL 12, 2010 PAGE 11 Ms. Skogen stated they used King's because it is an intoxicating liquor license, so it is the full complement of alcohol vs. a wine and strong beer license for Chris and Rob's or the India House. Councilmember Saefke stated he has a question on the conditions that they have in regard to the Baggan's Pub liquor license. He asked if the dates needed to be changed. Mr. Pribyl replied, the dates can be changed. Councilmember Saefke stated staff wanted to make sure they were clear in that the same type of stipulations carried forward. He said they all know that the Camden Avenue bridge will be closed for a minimum of six months. The Lowry Avenue bridge is being reconstructed so that the crossings available over the Mississippi River will either be I-694 or the Plymouth Avenue bridge. He will be interested to find out the effect of the limited access on Baggan's Pub. He is disturbed by the 89 calls for Baggan's. That is a lot compared to the other establishments in the City. Mayor Lund asked whether they were at a point where they wanted to look at revocation of Baggan's license with those calls. Councilmember Saefke asked the Public Safety Director to provide his recommendation and describe the nature of calls at Baggan's. Don Abbott, Director of Public Safety, stated in reaching their recommendation which was to ultimately approve renewal, they reviewed the records from last year when they had conditional license approval in April 2009 and renewal at a Council meeting on August 24, 2009. At that time, they had noted a decrease in police calls. If that rate were to hold for all of 2010, they expect 91 calls in 2010. They wanted Baggan's to stabilize the number of police calls at the new lower level and avoid any severe calls or a string of violent calls. In 2010, they have had 22 calls for service; and none of those calls have been of a serious assault. They did have one shortly after the Council meeting in August where a fight involved a male pulling out a knife and inflicting some minor injuries on another patron. He believed the two were cousins or related in some other way. They have had no such assaults since that time. Chief Abbott stated if this rate continues for the year, they would expect to see 79 calls. Their review of the data shows that they have met the requirements the City set in August. The calls have not only stabilized but appear to have decreased. That is why they have signed the approval for their license at this time. They would support the continuation of the conditions of license, specifically Nos. 2 and 3 from Resolution No. 2009-0175 dated May 5, 2009. Councilmember Saefke asked Mr. Pribyl if all of the license holders were notified of renewals. Mr. Pribyl replied, yes. The application identified this Council meeting as the renewal date. Councilmember Saefke asked if they need any concurrence from Mr. Bisek on these conditions. FRIDLEY CITY COUNCIL MEETING OF APRIL 12, 2010 PAGE 12 Mayor Lund replied, he did not think so. He would think they set the conditions of the license. Councilmember Saefke stated he means give him the choice to either withdraw his application or accept the conditions. Councilmember Saefke asked Chief Abbot if he was just recommending that Stipulation Nos. 2 and 3 be continued. Chief Abbot replied, just Stipulation Nos. 2 and 3. MOTION by Councilmember Saefke to approve the liquor license for William Bisek d/b/a Baggan's Pub at 3720 East River Road NE with the following conditions: 1. If there are any significant changes in the operation of the business or in the overall order, peace, and safety of the location, this will be grounds for a public hearing for immediate license revocation by the City. 2. Any serious crime occurring prior to the August 24 review is grounds for an immediate public hearing for license revocation by the City. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY MOTION by Councilmember Saefke to approve the liquor license renewals. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY 9. Licenses. Councilmember Saefke stated with respect to LivInn Suites' request for a moteUhotel license, he just wanted to bring to the attention of Council some concerns of residents who live in that area. Several weeks ago there was a stabbing that took place, and the perpetrator headed off and hid in a nearby tree. This is not the first incident of this nature. There has been a fugitive running away from a bondsman which our officers helped catch which included multiple jurisdictions of police and police dogs. He really understands the nervousness and fright that can happen when these events occur, especially in a residential neighborhood of people who have lived there quite some time. He would like a report from Chief Abbott. If the City cannot revoke their license the area residents would like to know why. He would like to have the City Attorney state the reasons why there cannot be a revocation at this time and under what conditions there could be. FRIDLEY CITY COUNCIL MEETING OF APRIL 12, 2010 PAGE 13 Don Abbott, Public Safety Director, said with respect to LivInn Suites, overall they have noticed an increase in calls for service in 2009. When they look at the calls for service, there has been a noticeable decrease of the more serious calls, the aggravated assaults which are felony assaults, notwithstanding the recent knifing incident. Pulling that one incident out, the numbers of aggravated assaults and robbery have decreased. They have gone from 9 in 2007 down to 0 in 2009 and 1 so far in 2010. What they have seen is an increase in police activity. Chief Abbott stated they have been providing a lot of e�tra attention there over the last year. Officers are going in and proactively looking at who is registered at the motel and checking them for warrants and making warrant arrests. They accomplish two things by that type of response, one, a lot of times he thinks they get, people who tend to engage in criminal activity to the point where there are warrants arrested and put into jail and out of the hotel and out of Fridley. The other thing is the word then on the street becomes, if you are wanted, and you come to LivInn Suites, the Fridley police are going to come knocking on your door and taking you to jail. Chief Abbott stated when you look at the criminal justice system initiated calls, basically it is the Police Department doing their own proactive police work or responding to requests from other police departments to perhaps check LivInn Suites for somebody who is wanted out of their community. Those are approaching 50 calls of those 155 calls that they had last year. What they see is an increase in some of the more damage to property or theft calls. A lot of times the victims of the thefts are guests of the hotel themselves. Some of the medical public assist are if someone needs to go to a crisis center or something. Those types of calls have increased. Chief Abbott stated they had a conversation today to confirm their observations with the overall manager. The manager did tell them that in 2009, their occupancy or their nights of bookings had increased over 29 percent. That is nearly a 30 percent increase. They have surmised that could be the result of economic factors. It is an e�tended stay hotel. It is the Police Department's belief that people are using it for that purpose in these economic times. Chief Abbott stated the management has been very responsive. If the Police Department has an issue, they talk to them and it is resolved fairly quickly. They continue to communicate with them and provide them with police reports. While they are not meeting with them on a regular basis, they do meet from time to time. The Police Department does support their license renewal at this time. Councilmember Saefke asked the City Attorney to give them the criteria for revocation and whether or not any standards here are being met. Attorney Knaak replied to him the standards are being met and they are standards the Council have set. Any kind of a license that is an annual license and is routinely renewed creates a property interest in the person who holds the license. If you decide to take away the license, you are taking away in essence a property right. Council has the right to do that because they regulate hotels. However, if you are going to take it away, you have to have a reason and it does have to be related to health and safety. If you fail to do it, you will be taking something from an entity without justification and creating possible liability for the City. FRIDLEY CITY COUNCIL MEETING OF APRIL 12, 2010 PAGE 14 Attorney Knaak stated in this particular case you have somebody who had some problems. What they are authorized to do and in fact what they did do is set up objective criteria. In other words they set it up so they could essentially fail if they did not do what they told them to do. Had they failed to meet the standards the Council set up for them, Council would have had a basis to revoke the license and it would have been undisputed. In this particular case, having set up those criteria, there is another side. If they have met those standards, do they have the power to take away the license? Yes, they do, but they set themselves up for an argument that they are acting arbitrarily and capriciously. Attorney Knaak stated in this case, as he understands it from the Police Department's report, what they have is a license holder who in fact is complying with the restrictions that were imposed. One of the things he thinks the Mayor is suggesting is do they want to continue with those restrictions, continue the stringent review, and continue with the direction of additional compliance. There is certainly nothing wrong with that. It is in their power, and that is something they are reasonably entitled to do. If they set up the criteria and they are meeting the criteria, as much as there might be some people who want this business to disappear, by pulling the license Council is exposing the City's to liability for taking something in an arbitrary way. As a practical matter, what it means, is that they are following the standards and restrictions Council has imposed upon them, and under those circumstances, Council really cannot take the license from them. Councilmember Saefke said if they took it away from them, they would set themselves up for possibly a large lawsuit. Attorney Knaak replied, yes, a large lawsuit where there is a fair likelihood they would lose. Councilmember Saefke stated that kind of explains what their position almost has to be right now considering the recommendation of the Police Chief and the legal opinion from the City Attorney. Mayor Lund stated it is on staff's radar screen, as well as Council's and the Police Department's. They have to meet the restrictions imposed by Council and if they fail repeatedly, that gives them the basis to pull or revoke their license. We want to make sure we are going to be on the prevailing side. Councilmember Saefke said he just wants to make sure that the people who are affected by this establishment know that the City understands their feelings about it William Burns, City Manager, stated thing, and he thinks the City Attorney would probably concur, is quite a large percentage of cases are settled. He thinks in Anoka County it is 98 percent of all criminal cases actually never go to court, they are settled. He thinks the percentage is right up there for civil cases as well. Insurers tend to want to settle, and so you want to be very careful in what you are doing and making sure that you are not setting yourselves up for not necessarily a court case that you are going to lose and lose drastic amounts of money, but also setting yourself up for a situation where you are forced into a settlement situation which is quite frequent. FRIDLEY CITY COUNCIL MEETING OF APRIL 12, 2010 PAGE 15 Mayor Lund asked Chief Abbott if there were any of the conditions staff was not performing. Specifically regarding Stipulation No. 6, is staff ineeting with LivInn staff on a quarterly basis? Chief Abbott replied they are not having regular meetings. He would ask that the language of that stipulation be modified to "as needed." Either side can request it. They do handle a lot of things with telephone calls and with them stopping in and picking up copies of reports, etc. The rest of those stipulations as found on the document dated April 16, 2009, can stay in effect. Councilmember Saefke asked what a serious crime was. Chief Abbott replied, a serious crime would be typically a crime in the felony level--aggravated assaults, homicide, kidnapping, criminal se�ual conduct to list a few. Rather than listing everything that could be a serious crime, we went with just a more general description of serious crime. MOTION by Councilmember Saefke to approve LivInn Suites' license for the period of May 1, 2010, through Apri130, 2011, at 5201 Central Avenue with the following conditions: 1. The City expects continued reduction in the number of calls for police service and a further reduction in the seriousness of incidents. 2. LivInn Suites will not accept cash payments for any room rental. All room stays will be charged to a credit card. Currently overnight rentals may be paid in cash and backed up by a credit card on file. 3. LivInn Suites will comply with the registration requirements of Minn. Stat. Ch. 327. Hotel staff will gather all personal identification on each guest and provide that in a format that allows police to check registered guests for wants and warrants. 4. LivInn Suites will review websites and other media commonly used by prostitutes to ply their wares and compare their photos and other features against their current guests. 5. The City expects continued cooperation from LivInn Suites staff. 6. Staff will meet with LivInn staff on an as needed basis. 7. Staff will provide a report to Council on a quarterly basis or as needed. 8. Any significant changes in the operation of the business or in the overall order, peace, and safety at the location could result in an immediate action by the City. 9. Any serious crime may result in an immediate license action by the City. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION by Councilmember Saefke to approve the licenses as submitted and as on file. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF APRIL 12, 2010 PAGE 16 12. Informal Status Reports. Councilmember Barnette stated he would like to encourage more people to ride the commuter train to the baseball games. If people would like to know when the trains run, etc. they can go to the following website: metrotransit.org. ADJOURN. MOTION by Councilmember Barnette, seconded by Councilmember Varichak, to adjourn. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MEETING ADJOURNED AT 9:10 P.M. Respectfully submitted by, Denise M. Johnson Scott J. Lund Recording Secretary Mayor