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CCM 11/09/2020 CITY COUNCIL MEETING CITY OF FRIDLEY NOVEMBER 9, 2020 The City Council meeting for the City of Fridley was called to order by Mayor Lund at 7:06 p.m. MEMBERS PRESENT: Mayor Lund Councilmember Ostwald Councilmember Tillberry Councilmember Eggert Councilmember Bolkcom OTHERS PRESENT: Wally Wysopal, City Manager Ryan George, Deputy Director, Public Safety Andrew Biggerstaff, City Attorney Brian Grogan, Moss & Barnett APPROVAL OF PROPOSED CONSENT AGENDA: APPROVAL OF CITY COUNCIL MINUTES: 1. City Council Meeting of October 26, 2020. APPROVED. NEW BUSINESS: 2. Adopt Resolution No. 2020 – 68 Electing to Participate in the Local Housing Incentives Account Program under the metropolitan Livable Communities Act. ADOPTED RESOLUTION NO. 2020-68. 3. Adopt Resolution No. 2020 – 69 Deferring the Special Assessment for Street Rehabilitation Project ST-2020-01 for the Property Located at 340 Hugo Street N.E. (Ward 3) ADOPTED RESOLUTION NO. 2020-69. 4. Adopt Resolution No. 2020 – 70 Ordering Preparation of Preliminary Report, Plans, and Specifications for 2021 Street Rehabilitation Project No. ST2021-02. ADOPTED RESOLUTION NO. 2020-70. 5. Claims: 190753 - 190925. APPROVED. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 9, 2020 PAGE 2 ADOPTION OF PROPOSED CONSENT AGENDA: MOTION by Councilmember Ostwald to adopt the proposed consent agenda as presented. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. OPEN FORUM, VISITORS: No one from the audience spoke. ADOPTION OF AGENDA: MOTION by Councilmember Bolkcom to adopt the agenda as presented. Seconded by Councilmember Tillberry. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. PUBLIC HEARING/NEW BUSINESS: 6. Consider Repeal of Fridley City Code, Chapter 405A and Replacement with City Code Chapter 405B; and First Reading of an Ordinance Renewing the Grant of a Franchise to Comcast of Arkansas/Louisiana/Minnesota/Mississippi/Tennessee, LLC, to Operate and Maintain a Cable System in the City of Fridley, Minnesota; Setting Forth Conditions Accompanying the Grant of Franchise; the Cable System; and Terminating Prior Franchise. MOTION by Councilmember Bolkcom to waive the reading of the public hearing notice and open the public hearing. Seconded by Councilmember Tillberry. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING OPENED AT 7:09 P.M. Brian Grogan, Moss & Barnett, stated the last franchise adoption date was November 7, 2005, with a term of 15 years, expiring November 2020. Compensation Franchise Fee is 5% of gross revenue on “Cable Service” and does not include telephone or broadband. Public, Educational and Governmental (“PEG”) channels upfront grant is paid to the City in addition to the 5% franchise fee. The City Franchise Renewal Negotiation Team consisted of Wally Wysopal, Brian Strand and Brian Grogan who exchanged numerous emails, face-to-face meetings and conference calls. The FCC 61 order impacts certain “free” services traditionally provided by Comcast. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 9, 2020 PAGE 3 th Fridley is a party to the legal challenge pending before the 6 Circuit Court of Appeals. The outcome may result in the City having to pay for services or declining to receive services. Mr. Grogan said the key terms of the new franchise include a 10-year term, 5% franchise fee, Performance Bonus ($25,000) / Security Fund ($20,000). The PEG fee is paid quarterly with a new funding formula of 1% of Gross Revenue and will provide greater stability for PEG funding. HD will be added to the 3 PEG Channels. Navigation to PEG Channels includes electronic programming guide, free service to public buildings and schools, maintain two interconnections at Fridley City Hall and Fridley High School, live broadcast from remote locations within City limits and strong customer service standards. PEG channels in HD are within 90 days of the effective date with one channel carried in both SD and HD. October 12, 2021, upon 90 days advance written notice from the City and one additional channel carried in SD and HD for a total of two HD channels for PEG. City staff and legal counsel recommend approval of the Comcast Cable Franchise. Councilmember Bolkcom asked what type of advance notice would be provided. Mr. Grogan replied that a 120 days advance notice is required. The City can be willing to pay the fee or no longer provide the free service. Councilmember Bolkcom asked about the reference to great customer service as some people have experienced long hold times to get a person to talk to. Mr. Grogan replied that phone calls are to be answered within 30 seconds after completing the IVR and the company must meet these standards 90% of the time. Installation should take place within 7 days of a new request, etc. There are four pages of customer service standards that are fairly aggressive and if the company fails, that is a franchise violation. Councilmember Bolkcom asked if a lot of complaints come in from customers. Wally Wysopal, City Manager, replied that Brian Strand gets the phone calls from residents and he will try to expedite the customer service call. We do not usually hear from customers until they have already tried to communicate with Comcast. Councilmember Bolkcom asked if that happened very often. Mr. Wysopal replied that a franchise is more helpful for us to enforce customer service standards. We get a few calls a month that are generally resolved through the expedited process. Councilmember Bolkcom asked about equipment in the right of way that was abandoned and if the City could enforce them to remove the equipment. Mr. Grogan replied that this is not done very often and every street in the City is used to provide service. This does not preempt City Code as the code will govern on all issues. If a wire is buried underground, it may not be in the best interest to remove the line. It may be better to leave it there abandoned and remove anything above ground. If the City Engineer has a problem with abandoned lines, they have the right as with any other provider to remove the lines. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 9, 2020 PAGE 4 Councilmember Bolkcom asked if the City was notified about lines that are abandoned. Mr. Grogan replied yes, they would contact the City. If new lines were run on a homeowner’s property, they may not remove the old line or notify the City. Councilmember Ostwald asked about the requirements for quarterly payments and making sure they are verified for accuracy and reports are received in a timely manner. Mr. Grogan replied that the franchise fee payments go through the Fridley Finance Department, and they pay close attention to those reports. Finance Directors make sure there is reconciliation and if there is a deviation, they would question any change in the report. Revenues coming in from cable are in a downward trend of 1-2%. Councilmember Eggert asked if there were any issues Comcast was aware of with other cities. Mr. Grogan replied that Comcast has a pretty good reputation of generally complying with the rules. Every once in a while, there may be an issue with a subcontractor. Mr. Wysopal noted that with the discussion about repair in the right of way, it is not a reference to easements in back yards. People may have issues with grass etc., and that has not been regulated in this franchise. With regard to financial impact, we have budgeted a decrease in revenue from this franchise, recognizing a shift from cable to internet services. The revenue side was audited four years ago by an independent audit and generally has been pretty good. MOTION by Councilmember Bolkcom to close the public hearing. Seconded by Councilmember Tillberry. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY, AND THE PUBLIC HEARING CLOSED AT 7:32 P.M. MOTION by Councilmember Bolkcom to waive the reading of the ordinance and adopt Ordinance No. 1385. Seconded by Councilmember Tillberry. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. NEW BUSINESS: 7. Approve an On-Sale Liquor License with Conditions for Angel Morocho-Carchi, Applicant, to Operate Halo’s Restaurant Bar and Vero’s Banquet Located at 1040 Osborne Road N.E. (Ward 1). Ryan George, Deputy Director, Public Safety, stated Angel Morocho-Carchi, applicant, has applied for an on-sale intoxicating liquor license to operate Halo’s Restaurant Bar and Vero’s Banquets, a restaurant and event center at 1040 Osborne Road N.E. The applicant has never possessed a liquor license but has managed restaurants in the past. In accordance with Section FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 9, 2020 PAGE 5 603.07 of the Fridley City Code, a public hearing to consider the approval of an on-sale intoxicating liquor license was held on October 26, 2020. At the public hearing, concerns regarding a possible nightclub operation were discussed. An event was planned for October 31, 2020, which advertised a 21+ ticket event between 10 p.m. and 2 a.m. at “Club Halo’s.” VIP admission was offered for a fee of $600, which included bottle service and champagne. The applicant responded to concerns and made assurances that the venue would not be operating as a nightclub, and the planned event was cancelled. Deputy Director George noted the license conditions state that there is no inherent right to sell intoxicating liquor, and it is the discretion of the City Council to issue or deny a liquor license. Minnesota Statute 340A.415 cites “a lawful license condition duly imposed by the authority issuing the license” as a valid basis for the suspension or revocation of a liquor license. Chapter 603 of Fridley City Code (Intoxicating Liquor) contains 23 standard conditions that apply to all liquor licenses. The City Council has the authority to impose other reasonable conditions it deems necessary to protect the health, safety and general welfare of the public. Staff recommends the approval of an on-sale liquor license for Halo’s with conditions, due to the unique attributes of the building, the fact that this license applicant has no history with a liquor license, and the evidence of an intent to conduct the business in a way that is not the same as a traditional restaurant. Deputy Director George reviewed the license conditions to include:  Close at 1:00 a.m. regardless of the day of the week, and any drink promotions that include “Happy Hours” or “2-for-1” are limited to one 2-hour period per day and must end before 6:00 p.m. Free drink promotions, contests, games, or promotions that encourage or reward binge-drinking or offer drinks as prizes are prohibited.  The business must adhere to the 60/40 liquor-to-food ration. Alcohol sales must be recorded as such and shall not be included as part of another transaction unless it is specifically documented as an alcohol sale. This includes but not limited to admissions, ticket fees, cover charges, meals, buffets, brunches, events, VIP rooms and bottle service. A CPA-Certified statement of food and liquor sales shall be provided during the annual renewal period.  The safety of patrons, staff and the community shall be the top priority of management, staff, and contracted personnel. The establishment shall employ staff and/or contracted personnel who are capable of maintaining a safe and welcoming environment for everyone. Staffing shall be sufficient to provide control of patrons and guests at all times. Management and staff may not rely solely upon the services of local law enforcement to maintain control of their business and patrons. Police calls-for-service data will be reviewed to determine the effectiveness of management and staff’s ability to maintain control of patrons and guests. Should the need arise, staff shall summon emergency help by calling 911. Staff shall not intentionally avoid calling police or emergency services when such services are needed. Staff and/or contracted personnel shall be responsible for the activities of patrons and guests while on Halo’s property. Attention shall be paid to activities occurring in the parking lot to discourage loitering, public urination, drinking, drug use or violence. The conduct of Halo’s patrons and guests shall not negatively impact surrounding businesses, residences or public property. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 9, 2020 PAGE 6  Licensee shall not advertise itself as a “nightclub” or hold events common to such venue at which liquor will be sold.  Licensee’s act of serving intoxicating liquor as permitted by his license shall operate as an express approval of all the conditions imposed by City Code and the City Council. Deputy Director George said at this time, staff recommends a motion to approve the On-Sale Liquor License with those conditions listed in Attachment A for Angel Morocho-Carchi, Applicant, to operate Halo’s Restaurant Bar and Vero’s Banquet located at 1040 Osborne Road NE. Councilmember Tillberry asked how someone would avoid attention if they need to call 911. Deputy Director George replied that people may avoid calling 911 but eventually someone will call 91l--a neighbor or patron. He realizes assaults or fights or disorderly conduct may happen and police are not contacted, but sometimes it would be in the best interest of the business to call 911. Councilmember Tillberry asked if this has happened in the past. Deputy Director George replied yes, they have run into issues where people avoid calling 911 as they knew the City was watching what was going on. If you need help, you need to call. Councilmember Ostwald asked when last call would be with the mandatory closing at 1:00 a.m. Deputy Director George replied that is up to the business to determine when to stop the kitchen operations and serving alcohol. All patrons must be out of the business at closing time of 1:00 a.m. or earlier. Only staff cleaning up or those waiting for rides would be permitted to remain. Mayor Lund asked about an outdoor endorsement. Deputy Director George replied they did have a patio, but the intent of the business owner is to do a revision to that outdoor establishment. He does not intend to have a patio assessable to the restaurant and there are no conditions on this right now that says they cannot have patio. Mayor Lund asked if a future renewal could change the closing to 2:00 a.m. Deputy Director George replied yes, plus additional conditions could go away at some point. This license is up for renewal April 30, 2021. At that time, depending on the track record, a recommendation may be to get rid of some conditions and keep others. Councilmember Bolkcom asked if these stipulations were anything different than what we have done with other new establishments in our community. Deputy Director George replied there are some conditions others have not had due to the concern of no history with a liquor license and the concern about nightclub operation. Also, this is a unique size building and restaurant, so a 2:00 a.m. closing is not recommended at this time. We want to see this business succeed and start off on the right foot. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 9, 2020 PAGE 7 Councilmember Bolkcom said they want businesses to call the police and work closely with them. If problems arise, police will contact the owner and help him if he is having issues with certain clientele. Deputy Director George replied they like to partner with businesses and come up with solutions to solve issues before they arise. Councilmember Eggert asked if the liquor license is in the business or owner’s name. Deputy Director George replied the owner is the applicant of the license along with any managers. Angel Morocho-Carchi, Business Owner, said this past weekend was a great success with the soft opening. Hours of operation are 11 a.m. to 1 a.m. and they would stop service around 12- 12:30 a.m. Councilmember Eggert asked if the license is prorated or if they have to pay for the entire year. Deputy Director George replied the license is expensive, so it is prorated month-to-month, November – April or for six months. Councilmember Tillberry welcomed Mr. Morocho-Carchi to the neighborhood. He asked if he agreed with the conditions of the license. Mr. Morocho-Carchi thought it was reasonable and fair. MOTION by Councilmember Tillberry to approve an On-Sale Liquor License with the following conditions for Angel Morocho-Carchi, Applicant, to Operate Halo’s Restaurant Bar and Vero’s Banquet Located at 1040 Osborne Road N.E. (Ward 1):  Close by 1:00 AM, regardless of the day of week o A 1:00 AM closing time does not allow a business to continue serving alcohol until 1:00 AM  Alcohol sales must cease early enough to allow for the business to close by 1:00 AM  Drink promotions o “Happy Hours” or “2-for-1” promotions are limited to one 2-hour period per day and must end before 6:00 PM. o The following are prohibited:  Free drink promotions  Contests, games, or promotions that encourage or reward binge-drinking  Contests, games, or promotions that offer drinks as prizes  The business must adhere to the 60/40 liquor-to-food ratio o This is a permanent condition of all City of Fridley liquor licensees o All alcohol sales must be recorded as alcohol sales FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 9, 2020 PAGE 8  Alcohol may not be included as part of any other transaction unless it is specifically documented as an alcohol sale  This includes, but is not limited to: o Admissions o Ticket Fees o Cover Charges o Meals o Buffets o Brunches o Events o VIP Rooms o Bottle Service o The business must submit certified documentation from a CPA during the annual renewal period which shows:  Gross food sales  Gross liquor sales  Total gross sales  Conduct of patrons and staff o The safety of patrons, staff, and the community shall be the top priority of management, staff, and contracted personnel o The establishment shall employ staff and/or contracted personnel who are capable of maintaining a safe and welcoming environment for everyone  Staffing shall be sufficient to provide control of patrons and guests at all times  Management and staff may not rely solely upon the services of local law enforcement to maintain control of their business and patrons  Police calls-for-service data will be reviewed to determine the effectiveness of management or staff’s ability to maintain control of patrons and guests o Should a need arise, staff shall summon emergency help by calling 911  Staff shall not intentionally avoid calling police or emergency services when such services are needed o Staff and/or contracted personnel shall be responsible for the activities of patrons and guests while on the Halo’s property  Attention shall be paid to activities occurring in the parking lot to discourage loitering, public urination, drinking, drug use, or violence  The conduct of Halo’s patrons and guests shall not negatively impact surrounding businesses, residences, or public property  Advertising o Licensee shall not advertise itself as a “nightclub” or hold events common to such venue at which liquor will be sold.  Acceptance of Conditions o Licensee’s act of serving intoxicating liquor as permitted by this license shall operate as an express approval of all of the conditions imposed thereupon by both the City Code and the City Council. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 9, 2020 PAGE 9 Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 8. Informal Status Reports. Councilmember Bolkcom thanked all judges for all their work with the election. It was very well run, and there was a great turnout. Councilmember Ostwald said that residents can pick up free smoke detector batteries in the lobby at City Hall until 4:30 p.m. daily. ADJOURN: MOTION by Councilmember Ostwald to adjourn. Seconded by Councilmember Eggert. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 8:00 PM. Respectfully submitted, Krista Peterson Scott J. Lund Recording Secretary Mayor