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
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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.
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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
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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.
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Mayor Droste opened the meeting for audience input.
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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.
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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.
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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.
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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.
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Respectfully submitted,
Linda Jentink, City Clerk
Recording Secretary