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HomeMy WebLinkAbout6.a. Minutes of November 1, 2005 Regular City Council MeetingITEM #6I A ROSEMOUNT CITY PROCEEDINGS REGULAR MEETING NOVEMBER 1, 2005 CALL TO ORDER/PLEDGE OF ALLEGIANCE Pursuant to due call and notice thereof, a regular meeting of the Rosemount City Council was duly held on Tuesday, November 1, 2005, at 7:30 p.m. m the Council Chambers at City Hall, 2875 145th Street West. Mayor Droste called the meeting to order with Council Members Shoe Corrigan, Sterner, Baxter, and DeBetttgmes attending. Staff members present were City Administrator Verbrugge, City Attorney LeFevere, City Engineer Brotzler, City Clerk Jentink, Communications Coordinator Cox, and Pohce Chief Kalstabakken. The Pledge of Allegiance was said. City Administrator Verbrugge presented additional information for agenda items 6.i. Rosemount Industrial PUD Final Development Plant, providing an agreement revised by the City Attorney; and donation information for item 6. j. Chantable Gambling Permits. Mr. Verbrugge requested an Executive Closed Session to discuss negonations for an assessment appeal by Car Nav 5 Mayor Droste accepted the additional information and added the Executive Closed Session to the agenda. Motion by Mayor Droste. Second by Shoe Corrigan. Motion to adopt the agenda with additional information for Item 6.i. and Item 6. j. and add an Executive Closed Session. Ayes: 5. Nays: 0. Motion carried. RESPONSE TO PUBLIC COMMENT City Administrator Verbrugge presented a community education brochure for residents in the Danville Avenue area which was designed to encourage traffic safety. Residents should receive the brochure by mail m the next week. CONSENT AGENDA Mayor Droste requested discussion on Item 6.j. Charitable Gambling Permits and Council Member Sterner requested discussion on Item 6.a. Minutes of October 18, 2005 Regular City Council Meeting. Motion by Baxter. Second by DeBetngmes. Motion to approve the Consent Agenda with the exception of Item. 6.a. and 6.j. Tabled b. Minutes of July 13, 2005 Council Work Session c. Minutes of September 6, 2005 Council Special Meeting /Planning Com. Interviews d. Minutes of September 14, 2005 Council Work Session e. Minutes of September 28, 2005 Special Council Work Session f. Bills Listing g. Final Grade Ordinance, Second Reading h. C3, Highway Commercial and C4, General Commercial Zoning Text Amendment, Second Reading 05 -25 -TA 1 ROSEMOUNT CITY PROCEEDINGS REGULAR MEETING NOVEMBER 1, 2005 i. Rosemount Industrial PUD Final Development Plan 05- 42 -PUD, Attorney revised agreement Tabled k. Declare Surplus Equipment 1. Receive Donation for Administration Depaitiuent m. Receive Donation for Police Equipment Fund and Approve Expenditure of Funds n Receive Bids, Award and Reject Contracts for City Hall Remodeling Project o. Receive Bids and Award Excavation and Site Utilities Contract for Fire Station II Project Ayes: 5. Nays: 0. Motion carried. 6.a. Minutes of October 18, 2005 Regular City Council Meeting Council Member Sterner requested more of the substance of the discussion on the Danville Avenue traffic concerns to be included in the final minutes. City Administrator Verbrugge stated that City Clerk Jentink will review the audio tapes of the meeting and make those additions to the minutes for consideration at the next Council meeting. No action was taken. 6.j. Charitable Gambling Permit for Shenanigans, McDivot's, and VFW Mayor Droste stated he wished to better understand what responsibilities the city has and what benefit there is to the community regarding chartable gambling donations. Mr. Droste pointed out the organization requesting a chartable gambling prenuses permit is from Burnsville and it appears that many of the donations do not directly benefit Rosemount Mr Droste noted the Rosemount ordinance states 80% of the donations must be spent m Rosemount and the contiguous communities Mr. Verbrugge reported City Attorney LeFevere advised him that the trade area is defined by state law and cannot be revised. Mayor Droste inquired what amount is spent within the city. Mr. Verbrugge noted the City Code provides that organizations permitted to conduct lawful gambling within the city shall submit an annual report to the city clerk and provide copies of the organization's annual audit, schedule reporting forms, and additional records and information as the clerk shall deem necessary. The reports should show where and to whom the funds are dispersed. The donations receive classification types that descnbe the recipient of a donation. The City can request additional disbursement detail. Mr. Droste preferred that money did not leave the City. Mr. Droste asked what responsibility the City has toward regulating pull-tabs. City Attorney LeFevere stated that the State Gambling Control Board is the regulatory agency that has taken a greater and greater role m regulation and has limited the cities ability to regulate. Mr. Droste asked if the city could have stronger control Mr. LeFevere rephed that the City can require that proceeds from gambling be spent within the trade area and some communities have limited the issuance of permits only to local organizations. Mr LeFevere stated this is not a guarantee that the money will be spent in the City, but it is more likely that those organizations will be more aware of the needs within the city. Also, Inuits can be placed on the number of permits that one organization can have in the city to prevent a monopoly from happening. 2 1 1 Motion by Mayor Droste. Second by Mr. Sterner. Ayes: 5. Nays: 0. Motion carried. ROSEMOUNT CITY PROCEEDINGS REGULAR MEETING NOVEMBER '1, 2005 Ms Shoe Corrigan requested more information about where the money is spent. Mr. DeBettgmes stated the reports are pubhc information and available upon request. Mr DeBetugnies pointed out that the classification code used by Baseball Association #191 for the high school donation May be incorrect. Mt. Verbrugge stated local liquor establishments are required by Section 3 -7 -5 of the City Code to nonce local organizations when a change is made to their gambling peruut. Mr. Droste requested records of donations from the last two years from Baseball Association #191 and the prior year from the Jaycees Ms. Shoe Corrigan requested detail of the types of donations made by the previous orgamzatton stating that some of the past donation recipients no longer received funds from pull-tabs Motion to table Item 61 Charitable Gambling Permit for Shenanigans, McDivots and VFW to sohcit more information on disbursements. NEW BUSINESS a. Off -Sale Intoxicating Liquor Licenses Ordinance Amendment, First Reading City Administrator Verbrugge reviewed the first reading of an ordinance amending the hmit of off sale liquor licenses, which is now at two licenses based on the population ratio of one off -sale license to 6,500 residents. The population count is received from Metropolitan Council in May each year. Mr. Verbrugge proposed adding two additional licenses, totaling four available hcenses until June 30, 2007 after which time there would be no lumt. The proposed amendment wording was as follows: Section 3 -1 -2 L. 2. Four (4) off -sale intoxicating liquor licenses may be issued prior to June 30, 2007. On or after June 30, 2007, there shall be no limit on the number of off -sale intoxicating liquor licenses. Council Member DeBettignies proposed that the number of hcenses not change and a sunset clause for removing the limit be set for July 1, 2006. Council Member Baxter recalled from the past work session a compromise was reached to change from two to four licenses with a transition period of about one year Mr. Baxter preferred to phase into the open market with no limits on off -sale intoxicating liquor licenses on January 1, 2007. Council Member Sterner supported a distance separation of 2000 feet and stated he would agree to the staff proposal for the sunset date of June 30, 2007. Mayor Droste stated he was not in favor of a distance separator. Mr. Droste believed this created a dilemma by using a random number of feet to determine business locations. Mr. Verbrugge confirmed that the two current off -sale liquor stores are about 2100 feet apart. The sites at CR 42 and Highway 3 and 145th Street and Highway 3 are also more than 2000 feet apart Mr. Verbrugge was concerned that the separation would prevent a liquor store from developing in any other part of 3 ROSEMOUNT CITY PROCEEDINGS REGULAR MEETING NOVEMBER 1, 2005 the downtown area. Mr Droste noted that on the liquor hcense survey provided by staff there were twelve cities that did not use a separation distance and only two that had m the past used that method of separation. Mr. DeBettigmes did not want to regulate distance between retail businesses. Mr. DeBetugmes stated the market should drive locations. He noted he preferred keeping the separation of a minimum of 300 feet between hquor estabhshments and churches and schools. Na DeBettignies supported changing to unlimited off -sale hcenses on July 1, 2006. Council Member Shoe Comgan recalled, in the past, there was a need to protect the diversity of businesses in town. Now the City has completed the market studies, made decisions on downtown development, and the 42/52 Corndor study is complete. Ms Shoe Corrigan commented that the goal was to buy time while those larger goals were met. She stated the City now has mcreasmg commercial space available and now is the time to take away the off -sale liquor store limits and allow the free market to drive the types of businesses that come into town. Ms. Shoe-Corrigan supported Mr. DeBetttgnies' proposal with the sunset date of July 1, 2006 She stated she would not support a separation distance. Ms Shoe Corrigan stated the City should let the open market and business owners determine their own business decisions. She stated it was the Council's goal to increase opportunities for businesses coning to Rosemount in a reasonable manner Mr. Sterner pointed out that alcohol is a substance that can and has been controlled and should be controlled. Mr. Sterner commented that the City has not gamed retail diversity yet. He stated there is duphcatton of same type businesses now, which causes additional competition Mr. Sterner beheved that the separation distance would support diversity with the limited commercial area available Mr. Droste pointed out that Inver Grove Heights and Chaska recently added a specialty wine store and both cities have populations similar to Rosemount. He recalled a request was entertained by Council m 2002 for an additional hquor store and the City decided to wait at that time Mr. Droste supported the July 1, 2006, sunset date. Mr. DeBettigrues expressed he is not a proponent for liquor sales and does not condone the use of alcohol. Ms. Shoe Corrigan stated she would be in favor of hfting the limit restriction immediately with a compromise on the date to July 1, 2006. However, she would not support the January 1, 2007, sunset date. Mr. Verbrugge and City Attorney LeFevere revised the wording of the proposed amendment Mx. LeFevere suggested keeping the existing paragraph with the population restnction and using July 1, 2006, for the sunset date. Mr. Baxter and Mr. Sterner were opposed stating they would hke to see a sunset date of January 1, 2007. 4 Mayor Droste opened the meeting for audience input. 5 ROSEMOUNT CITY PROCEEDINGS REGULAR MEETING NOVEMBER 1, 2005 Discussion was held on when the license could be issued. Mr. Verbrugge explained staff could accept an application and conduct a review poor to the effective date and then issue the license on the effective date. Mr Verbrugge anticipated two differing approaches for managing applicants 1) direct staff not to accept applicants until the effective date; or, 2) direct staff to proceed with review of applicants pnor to the effect date and approve the apphcant on the date the ordinance is effective. Mr Droste pointed out that the goal of Council is to promote business and clearly by this decision, Council would be limiting businesses from coming m. Mr. Droste did not believe City Council should be in the role of picking and choosing businesses for Rosemount. He commented that the selection process may create a situation where not all parties are pleased. Mr. DeBettignies stated he did not want to end up selecting businesses. Mr. Baxter stated he was m agreement with the fact that we should transition to an open market place. His question was how to handle the transition and what would be a reasonable length of time. Mr. Baxter stated he did not object to addmg two off -sale liquor licenses. Mr. Verbrugge requested direction from City Council on selection of multiple applicants and the selection process. City staff has received contact from five to seven parties interested in off -sale liquor businesses Mr. Verbrugge suggested staff can put some cntena together to determine selection for City Council to review. Todd Johnson, Vice- President of Steiner Development, noted that three council members appeared to be in favor of protecting existing businesses Mr Johnson noted that he would expect that City Council should protect the community and encourage diversifying the tax base by bringing more commercial development to town. Mr Johnson stated that Rosemount Crossing's rental space is now 69% leased He reported he should be able to maintain a lease agreement with MGM Liquor even with a delay to July 1, 2006. Mr Johnson had concerns if the delay would be longer than July 1, 2006. Mr Johnson believed it would benefit the prospenty of Rosemount to have this highly visible corner be successful. He encouraged the City Council to do what is best for the entire community and open the off -sale hquor license limit to the free market. Sean Shoemacher, 16900 Fairhaven, Lakeville, a partner of Rosemount Liquor Mart, thanked the City Council members for theft consideration to the sensitivity of their business situation He noted he was aware of this ordinance limitanon when their business plan was developed. Mr. Shoemacher was aware that MGM had discussions with the past owner of Rosemount Liquors and MGM decided not to purchase the Rosemount Liquor Mart location He pointed out that replacing one hquor store for another does not benefit the community Mr Shoemacher did not believe that a third store in Rosemount would bring lower prices or more variety. Charles Christ, 1330 Hubbard Avenue, St. Paul, a partner of Rosemount Liquor Mart, wished to comment on the expectation of lower retail prices with additional stores. He did a cost study by purchasing the same items at his store, Shenanigans, and MGM in Eagan. Mr. Chest presented receipts showing that Rosemount Liquor Mart had the lowest prices. He also beheved that additional stores may actually raise the prices and that the community would not be better served by having more hquor stores Mayor Droste summarized three alternatives to the ordinance amendment: 1) leave as is; 2) add two licenses and open the market July 1, 2006; or 3) open the market January 1, 2007. Mr Sterner stated he would prefer option 1) or option 3). Mr. Verbrugge pointed out that staff was not proposing to keep the population limit. Mr. Verbrugge also noted that Police Chief Kalstabakken had located a provision m the Minnesota State Statutes that cities of the first class are restricted to one store per population of 5,000 for off -sale liquor hcenses If Council adopts the staff proposal this per capita is approximately the same as the market currently in Rosemount. Mr.Verbrugge reiterated that staff can hve with any of the options. Mr. LeFevere commented that the most common way to select a business, if multiple applications are received, is by lot or coin flip. He noted this eliminates value judgements and would seem apptopriate m this situation. Mr. Droste stated he would hke to review the selection criteria data before making a decision to use that method of selection. Mr. DeBettignies stated he would not support a coin fhp because it is an immeasurable nsk to business developers. Mr. Baxter clarified he would like to offer protection from having the market flooded with off -sale hquor stores and he would support the ordinance as drafted Mr. DeBettignies would not support opening up the market immediately. Ms. Shoe Corrigan stated she would support the July 1, 2006, revision. Mr. Sterner inquired if Council would consider a dual approach where four liquor stores would be allowed by July 1, 2006 and then open the market up January 1, 2007. Mr. DeBettignies was firm about not wanting to be in the business of regulating businesses and stated he would not favor a complex amendment. Mr. Droste indicated he favored the July 1, 2006, revision. Mayor Droste called for a motion to direct staff. Motion by Sterner. Second by Baxter. Ayes: Sterner, Baxter Nays: DeBettigrues, Shoe Corrigan, Droste. Motion failed. 6 ROSEMOUNT CITY PROCEEDINGS REGULAR MEETING NOVEMBER 1, 2005 Motion to allow four off -sale intoxicating liquor licenses to be issued prior to June 30, 2007. On or after June 30, 2007, there shall be no linut on the number of off -sale intoxicating liquor hcenses. Motion by DeBettigmes. Second by Shoe Corrigan. L. Apportionment of Intoxicating Liquor Licenses. Ayes: DeBettigmes, Shoe Corrigan, Droste. Nays: Sterner, Baxter. Motion carried. Mr Verbrugge announced the second reading would be November 15, 2005. 7 ROSEMOUNT CITY PROCEEDINGS REGULAR MEETING NOVEMBER 1, 2005 Motion to direct staff to draft the following ordinance amendment for a second readmg on November 15, 2005. 2. Off -sale intoxicating liquor licenses may be issued dependent on the population of the City of Rosemount. One off -sale liquor license may be issued for each six thousand five- hundred (6,500) of city population attained, as determined by the most recent Metropolitan Council population estimates. On July 1, 2006, there shall be no lint on the number of off -sale intoxicating liquor hcenses. b. Adoption of Comprehensive Water System Plan City Engineer Brotzler reviewed the Comprehensive Water System Plan Preparation for the plan began m January, 2004. The Plan was completed after the recent adoption of the 42 Land Use Plan. Mr Brotzler noted the following infonmanon regarding the Rosemount water system: Average day water demand is 2 0 million gallons demand (MGD) Peak day water demand is 5.6 MGD Municipal water system includes seven wells with total capacity of 6,600 gpm Three existing elevated storage tanks provide 2,000,000 gallons storage capacity Water treatment mcludes addition of chlorine, fluoride and polyphosphate at wells Existing estimated population of Rosemount is 20,501 The table provided showed the future projected water system and what the peak day and average day water demands will be m five -year increments to year 2025. Three new well fields are proposed that will include up to 20 additional wells to meet projected ultimate demand. The total projected future water storage needed for ultimate conditions is 13,000,000 gallons. The plan also evaluates the options for future water treatment facilines to correct any smell, taste or color conditions. Mayor Droste inquired how staff knows that the water quality is safe. Mr. Brotzler reviewed the water sampling tests that are reported to the Department of Health The Department of Health has strict requirements to nsure the primary drinking water standards are adhered to. Mayor Droste pointed out that with growth city systems can have aesthetic problems with the water supply such as odors, discoloration, and taste. Mr Brotzler reported most water quality issues are in newly developed areas designed to carry larger flows than are being utilized currently. Mr. Brotzler noted when growing communities reach populations of 25,000 to 30,000 they often find water treatment facilities are needed. Mr Brotzler reported Rosemount's water is received from the Jordan Agmfer. Mr Brotzler stated that Barr Engineering, which specializes in ground water modeling, projected demands for the Jordan Aquifer and found the water supply source adequate for future generations. Each year a Consumer Confidence Report is mailed to all residents reporting Department of Health evaluations on Rosemount's water quality. Motion by Sterner. Second by DeBettignies. ROSEMOUNT CITY PROCEEDINGS REGULAR MEETING NOVEMBER 1, 2005 Motion to adopt a resolution adopting the Comprehensive Water Supply Plan Ayes: 5. Nays: 0. Motion carried. ANNOUNCEMENTS City Administrator Verbrugge reported two recent deaths in the community The husband of LaDonna Boyd passed away. Ms. Boyd participates in Dakota Futures and is an economic development partner with City Staff and City Council Mr. Verbrugge also noted Rick Kelley, the Community Development Director of the City of Apple Valley also passed away from cancer. Mr. Kelley had a tremendous record of public service. City Council and City Staff expressed their condolences to these families and co- workers. Mayor Droste reviewed future regularly scheduled meetings. Mayor Droste reminded the audience of the Downtown Businesses meeting on Wednesday, November 2, 2005 at 6:00 p.m. to 7:30 p.m. at City Hall. The Planning Commission work session on November 8 was canceled. I.S.D. 196 will hold its school board election on November 8 with voting available 7 a.m. to 8 p.m. The City Hall is closed on Friday, November 11, m honor of Veteran's Day. Mayor Droste moved to adjourn to an Executive Closed Session for negotiation of a special assessment appeal. City Attorney LeFevere further explauied recent case law suggests that the minutes reflect the reason for a closed session Mr. LeFevere stated staff is recommendmg an Executive Closed Session for discussion of the Car Nav 5 Special Assessment Appeal. It is pending litigation scheduled for trial later this month. Mr. LeFevere requested open, candid discussion of the settlement proposal, looking at strengths and weaknesses of the case. Mr. LeFevere stated the litigation will be the only topic discussed and an open meeting could reveal information that would be advantageous to the opposing side. Mr. LeFevere noted that highway project costs that are not paid for by this special assessment would be paid for by the taxpayers or some other form Mr LeFevere proposed that a motion may result that would require consideration at the reconvened regular meeting. Motion by DeBettignies. Second by Baxter. Motion to move the City Council meeting to a closed session. Ayes: 5. Nays: 0. Motion carried. 8 ROSEMOUNT CITY PROCEEDINGS REGULAR MEETING NOVEMBER 1, 2005 Mayor Droste moved the Executive Closed Session to the conference room at 9 :05 p.m. The regular meeting was reconvened at 9.50 p m. Motion by Droste. Second by DeBetttgmes. Motion to settle the Special Assessment Appeal by Car Nav 5 in the amount of $115,000. Ayes: 5. Nays: 0. Motion carried. Mayor Droste moved to adjourn the meeting at 9:52 p.m. Second by Sterner. Ayes: 5. Nays: 0. The meeting was adjourned. The City Council Agenda Packet is Clerk's File 2005 -45. 9 Respectfully submitted, Linda Jentink, City Clerk Recording Secretary