HomeMy WebLinkAbout1987/03/02 - ADMIN - Minutes - City Council - Regular (2) 4b
MINUTES
11111 CITY COUNCIL MEETING
ST. LOUIS PARK, MINNESOTA
March 2, 1987
1 . Call to Order The meeting was called to order at
7:30 p.m. by Mayor Lyle Hanks.
2. Presentations Mayor Hanks presented a proclama-
tion to representatives of
the local Girl Scouts organiza-
tion in recognition of its
75th birthday. A group of
Girl Scouts led those present in the pledge of allegiance to the flag.
3. Roll Call The following Council members
were present at roll call :
Ronald Backes Keith Meland
Thomas Duffy Larry Mitchell
Allen Friedman David Strand
.Lyle Hanks
11111 Also present were the Assistant City Manager, City Attorney, Director
of Public Works and Director of Planning.
4. Approval of Minutes It was moved by Councilman
Mitchell , seconded by Councilman
Strand, to approve the minutes
of the February 17, 1987 City Council meeting.
The motion passed 5-0-2 (Councilmen Duffy and Meland abstained) .
5. Approval of Agenda It was moved by Councilman
Strand, seconded by Councilman
Mitchell , to approve the consent
agenda for March 2, 1987.
The motion passed 7-0.
It was moved by Councilman Mitchell , seconded by Councilman Backes,
to approve the agenda for March 2, 1987.
The motion passed 7-0.
PUBLIC HEARINGS
6a. Costco Wholesale Corp. Liquor license
Richard Reiss, Minnetonka, owner of Reiss' Restaurant, spoke in opposition
to the granting of a liquor license. He felt that by a license being
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March 2, 1987
41111
issued to Costco, other liquor dealers in the City would be at an unfair
disadvantage because the nature of Costco's business is wholesale and according
to state law, you're not to use the word wholesale in one' s advertising.
He said Costco is known as a wholesaler, and so advertises itself.
Councilman Backes referred to Costco's brochure and asked why there was
no evidence of beer, wine or liquor being offered for sale. He asked why,
in the concept of their merchandising, the sale of beer, wine and liquor
is necessary. -
Ed Marin, from Costco's corporate headquarters, responded that in their
membership warehouse clubs they try to offer for sale as wide a variety
of products as possible for sale. They consider wine, beer, and distilled
spirits as part of that assortment policy.
In answer to a question from Councilman Backes, he responded that 50-60%
of their facilities sell wine, beer and spirits.
Councilman Strand asked about the volume of sales in the liquor area or
what the volume is in other stores. Mr. Marin replied that an approximate
guess would be two to three percent of the total volume and that in a mature
warehouse that would be two to three percent of $1 million per week.
Councilman Strand asked what was the split between business purchasers
of liquor and individual purchasers. Mr. Marin responded that 20 percent
of their members are businesses who purchase 60 percent of these products;
40 percent is purchased by group members. He added that the liquor is not
for resale.
Councilman Friedman said that when Costco first applied for a permit, he
did not recall any indication that there was going to be a liquor outlet.
Staff responded that it was their recollection there was not and Council
members concurred.
Councilman Friedman asked why now, after approval of everything, is Council
just learning of the plan to have liquor sales.
Mr. Marin said he was not aware that a request for liquor sales was not
in the original presentation because Costco sells alcoholic beverages in
every market they've—entered--as-part--of their--btlsi-ness --plan. —Tire--warehouse
manager said it had been mentioned to the City Clerk in August of 1986
but the process was dropped due to difficulties with the site and they
waited until those- were-- resolved._ They___did_ _not approach the City Clerk
again until January.
Mayor Hanks said as he understood it Costco is selling this concept as
a club membership but the liquor cannot be sold under those circumstances
because of the Liquor Control Commission, that iso it must be open to all
customers, not just cardholders. He said he had a problem with the division
in the membership - on one hand, a membership type of business and on the
other, it has to be open to the public under Liquor Control Commission
rules.
In answer to a question from Councilman Duffy why the Minneapolis warehouse
does not sell liquor, it was explained that the alderman in the warehouse's
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March 2, 1987
11111 ward has said that no liquor sales will be allowed in his ward.
There being no one further wishing to speak, the Mayor declared the hearing
closed with the right of Council to thereafter reopen and continue it at
a future date.
Councilman Strand said he had no problem with this particular applicant.
He said the City has a certain number of on-sale liquor licenses it grants.
He assumed the Council has determined the number of licenses that ought
to be permitted in the community. In the off-sale area, he didn't believe
that has been the case. It seemed to him that at some point, the City has
to step back and decide there are enough off-sale facilities and perhaps
ought to consider putting a limit on what that number should be. He said
he had difficulty voting on this matter when he doesn't have the ability
to judge whether this application will be too much for the City.
Councilman Meland said he had a similar problem. He believed the restriction
on on-sale licenses is legislatively mandated. He said in cities of the
first class, they do mandate one off-sale license per 5,000 population.
He said the City has used that figure when granting the nine existing licenses.
He also believed Council should be made aware that in the recent past,
four off-sale stores have closed, basically business failures.
It was moved by Councilman Strand, seconded by Councilman Mitchell , to
defer this matter so that Council can consider whether the number of off-sale
11111 licenses in the community is adequate or too extensive before any further
action is taken on this item.
The motion fai led 2-4 (Councilmen Duffy, Backes, Friednan, Noland and Mayor Hanks
opposed) .
It was moved by Councilman Meland, seconded by Councilman Duffy, to direct
staff to prepare a resolution of denial incorporating the first class cities
rules.
Councilman Meland foresaw additional enforcement costs to be incurred by
the City and he believed the present nine licenses adequately serve the
community.
Councilman Backes asked if the motion could contain a comment about the
hol
w esale connotation which could possibly be misleading to the general
public.
Councilman Friedman preferred the two issues remain separate for voting
purposes. He agreed with Councilman Backes in that he also had a problem
with the word wholesale. However, he said he would vote against the motion
because Council sets the number of licenses to be issued at a given number.
By doing that, he believes the value of those licenses are artificially
inflated. He alluded to past discussions on taxicab licenses when it was
opened up so anyone could apply. By doing this, nobody gets protected.
He thought it bad public policy to artificially allow these kinds of licenses
to gain value by limiting their number. He felt each case could be handled
on the merits of the application and individual circumstances.
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March 2, 1987
Councilman Strand said he would oppose the motion on different grounds.
He thought there should be a limit on the number of licenses issued, but
did not know what that limit should be. Without further information, he
couldn't vote to deny the application of Costco.
Mayor Hanks said his problem was that the Costco representatives present
should either get a yes or no that evening as they're getting ready to
open the store. He didn't believe they were interested in being put off.
Meland
In reply to a question from Councilman Friedman, Councilman/ restated his
motion, to wit, direct staff to prepare a resolution of denial that would
incorporate the cities of first class rule, the fact that nine off-sale
licenses adequately serve the community and the undesirability of the added
law enforcement burden which would be placed on the City for a $200/year
license.
Councilman Mitchell asked for clarification of cities of the first class.
Councilman Meland said cities of the first class are restricted by the
state to issuance of one license per 5,000 population.
Councilman Mitchell argued that St. Louis Park was a second class city.
Councilman Backes said the rule would be used as a finding, as a guideline
for basis of denial .
Councilman Friedman asked the City Attorney whether or not Council can
deny a license based on an ordinance the City doesn't have. Also, could
he ask for a division on this issue: (1 ) as to whether Costco gets the
license; and (2) whether an ordinance should be prepared.
Mayor Hanks said -it--was—hi-s-_under_standing an ordinance was not required,
rather a resolution of denial citing amongst other things the cities
of the first class rule as a basis for denial .
Councilman Friedman said he wanted to know if Council could deny Costco
on the basis that we think we ought to have the same rules as a city of
first class. He said the City does not have that rule and in that event,
how can they be denied on the basis of something the City doesn't have.
The City Attorney responded that the statutes and appellate decisions which
govern this decision provide the City Council with broad discretion. The
statute to which Mr. Meland referred provides that in cities of the first
class, not more than one off-sale license can be issued for each 5,000
population. He said- this - statute also provides-th-at all other cities shall
limit licenses based on determination of the governing body but does not
prescribe a procedure for doing that. He alluded to a 1977 appellate court
decision in which a City Council denied an off-sale application because
it felt that three licenses were sufficient to serve that community. The
court sustained that denial . He said the best answer he could give is that
based on the appellate law he reviewed, the City does have the discretion
to act in the procedure fashion which was being put forward.
Councilman Friedman asked if, by using this rule, did it mean that each applica-
tion is determined on its merits and each time an application is made,
Council determines whether or not there are sufficient outlets in the community.
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March 2, 1987
Councilman Meland said he did not recall this question ever coming before
Council before.
To clarify, Councilman Friedman said it was his understanding that what
the motion said is if we find that we're not going to grant this on the
basis of using a guide that we should only have one license per 5,000 popula-
tion, it seems it's still open and anybody -can come in and each time this
Council could make the determination as to whether or not we want to stay
with one license per 5,000 or 4,000 or whatever we want. The problem he
was having was it does not seem to be very clear what Council is saying
or where it's going.
Councilman Meland said that's why he made his motion and the answer to
his question was yes.
Councilman Strand felt this motion was arbitrary without looking into the
matter further and making a determination for time immemorium that X number
is what the City is going to have. He supposed the applicant would be willing
to wait if there were a possibility they might be granted a license at
a laterP oint in time.
The motion failed 3-4 (Councilmen Friedman, Mitchell , Strand, Mayor Hanks
opposed) .
11111 Councilman Friedman said he could support Councilman Strand's motion to
continue the matter until Council has a chance to look at what they want
to do and come up with some logical answer.
It was moved by Councilman Friedman, seconded by Councilman STrand to defer
the matter until Council has had an opportunity to discuss implementation
of a policy with respect to the number of olf-sale intoxicating liquor
licenses that will be permitted in the City of St. Louis Park.
Mayor Hanks asked what kind of information Council was looking for to make
this type of decision. He questioned how Council will get this information,
i .e. call other cities and see how many they have per thousand, or what.
He did agree that restricting licenses puts a higher value on those few
available.
The motion failed 3-4 (Councilmen Backes, Duffy, Meland, Mayor Hanks opposed) .
Mayor Hanks said he was having a problem with a wholesale club selling
liquor. He said previously--the--City—had--a--liquor--warehouse- and they had
to change their method of doing business by order of the Liquor Control
Commission. He also had a problem with liquor being sold in a membership
type operation. He was also opposed to deferring the matter and not letting
the applicant know where they stand. He did not agree with setting a definite
figure for number of licenses to be issued.
Councilman Backes asked if a resolution was necessary or is the record
of the minutes sufficient if there was just a motion to deny.
The City Attorney responded that the decisions he had reviewed did not
require resolutions. Decisions in other casesuirelated to off-sale licenses,
particularly from the new court of appeals would indicate that a resolution
might be desirable but appellate decisions pertaining to new off-sale license
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March 2, 1987 41111
applications which he had reviewed do not mandate resolutions.
It was moved by Councilman Duffy, seconded by Councilman Backes to deny
the application.
The motion passed 5-2 (Councilmen Strand and Mitchell opposed) .
6b. CDBG funding Community Development Block
Grant Year XIII
Grace Morris, Greater Minneapolis Daycare Association, told Council she
hoped they would vote in favor of giving money for child care subsidy.
Councilman Strand asked if $15,000 would be adequate. Ms. Morris said of
course they'd like more, but she was well aware of the many organizations
seeking funding.
Councilman Strand asked if the 20 people on the waiting list would qualify.
Ms. Morris said she believed all 20 would; however, they are checked out
to see if they still qualify at the time of funding distribution.
Councilman Friedman asked if the monies had to be distributed as shown 4111/
on staff's report.
Staff responded the division of monies is largely historical with the bulk
going to housing rehabilitation. Child care subsidy has only been looked
at for the past couple of years. And now that the Highway 7 corridor redevelop-
ment program is gearing -up, -some -funds are targeted there for Allemomr ] _of
slum and blight.
Councilman Friedman felt that if more money is needed for day care as opposed
to rehabilitation of Hwy. 7, then the latter program will have to be funded
from other sources. He would like to see the money go to services that
allow people who need these funds to get them. He didn't see how the rehabili-
tation of Hwy. 7 benefits people who need to put children in day care in
order to earn a living.
Councilman Strand questioned if the day care program were properly funded
by the City or should the state be funding it. Although he supported day
care funding, he wondered if it were the City's obligation to take care
of other programs than daycare and that state funding be increased to take
care of day care funding.
Mayor Hanks said Community Development Block Grant funding is being wiped
out next year. He said it has been Council 's effort not to get any programs
going too strongly with CDBG funding in the event the funding is stopped.
He said it has been Council 's policy to fund programs that potentially
won't come back year after year seeking increased funding. He didn't want
any group to get a false sense of security which might happen should the
full amount be targeted for one special program.
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March 2, 1987
There being no one further wishing to speak, the Mayor declared the hearing
closed with the right of Council to thereafter reopen and continue it at
a future date.
It was moved by Councilman Duffy, seconded by Councilman Strand, to direct
staff to submit CDBG Year XIII application to Hennepin County Board of
Commissioners and the Citizen Advisory Committee.
The motion passed 7-0.
PETITIONS, REQUESTS, COMMUNICATIONS
None.
RESOLUTIONS AND ORDINANCES
8a. Ordinance transferring funds Second reading of an ordinance
Ordinance No. 1710-87 transferring funds for 1987
salary adjustments
It was moved by Councilman Mitchell , seconded by Councilman Friedman, to
waive reading and adopt ordinance No. 1710-87 entitled "An ordinance authorizing
the transfer of funds and providing appropriations for salary adjustments
for year ending Dec. 31 , 1987"
The motion passed 7-0.
8b. Sale of homes Second reading of an ordinance
Ordinance No. 1711-87 authorizing the sale of proper-
ties on Louisiana Ave.
It was moved by Councilman Mitchell , seconded by Councilman Meland, to
waive reading and adopt Ordinance No. 1711-87 entitled "An ordinance authorizing
sale of property located on Louisiana Ave. So. consisting of 3028, 3032,
3048, 3104, 3108, 3112, 3116, 3136, 3140, 3146, 3152 Louisiana Ave. So."
The motion passed 7-0.
8c. Sick leave incentive —Second reading o1 an ordinance
Ordinance No. 1712-87 re amendment to sick leave
incentive program
It was moved by Councilman Duffy, seconded by Councilman Backes, to waive
reading and adopt Ordinance No. 1712-87 entitled "An ordinance amending
the St. Louis Park Ordinance Code related to personnel : Amending Section
3-602(F) (i ), sick leave incentive program by the addition of permanent
parttime employees."
The motion passed 7-0.
8d. Apple Valley Red-E-Mix Resolution of findings:
Resolution 87-21
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March 2, 198741111
Apple Valley Red-E-Mix
Councilman Backes noted an error in the resolution. The vote on the matter
was 4-1 , Councilman Backes opposed.
It was moved by Councilman Strand, seconded -by Councilman Meland, to waive
reading and adopt Resolution 87-21 entitled "Resolution of findings regarding
the application of AVR, Inc. for a building permit to construct a new concrete
ready mix plant at 3270 Gorham Ave."
The motion passed 5-1-1 (Councilman Backes opposed; Councilman Duffy abstained)
8e. Real estate signs: Park Glen Rd. Resolution granting permit
Resolution 87-21 for two real estate signs
at 4401/4501 Park Glen Rd.
It was moved by Councilman Friedman, seconded by Councilman Duffy, to waive
reading and adopt Resolution 87-22 entitled "Resolution approving two project
information signs under Section 14-185.02(13) of the Ordinance Code relating
to zoning for property located in the R-B, residential business district,
at 4351 , 4401 and 4501 Park Glen Road."
The motion passed 7-0.
41111 8f. Miniwarehouse Amendment to special permit
Resolution 87-23 for mini-storage facility at
3800 Louisiana Ave.
It was moved by Counci=lman- Metand, seconded- by £oonci lman Backes, to waive
reading and adopt Resolution 87-23 entitled "A resolution rescinding Resolu-
tion 85-88.1 adopted on June 17, 1985 rescinding Resolution 7521 adopted
on Dec. 19, 1983 and granting permit under Section 14-123.100(2) , 14-107(2)
and 14-195(2) of the St. Louis Park Ordinance Code relating to zoning to
allow an industrial development unit ten miniwarehouse buildings for property
located in the I-1 industrial and F-2 floodplain districts at 3800Louisiana
Ave. So."
The motion passed 7-0.
8g. Time transfer station Councilman Strand read into the
Resolution 87-24 record his resolution relative
to the City's position on the
proposed time transfer station at Hwy. 12/Louisiana Ave.
It was moved by Councilman Strand, seconded by Councilman Mitchell to waive
reading and adopt Resolution 87-24 entitled "Resolution opposing siting
of a time transfer station, requesting public process to review alternative sites."
Councilman Strand presented a brief background on why this resolution had
been developed. Basically, he was presenting his resolution in rebuttal
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11111 March 2, 1987
to the process of site selection by MnDOT and RTB which he characterized
as flawed. Lack of neighborhood input along with denying residents a chance
to hear the pros and cons of the other proposed sites was especially disturbing.
He did not feel the City of St. Louis Park had been well served by their
analysis, and by agreeing to the points in his resolution, the RTB would
have an opportunity to restore its credibility._
Mayor Hanks agreed and felt strongly that it not be thought location
of a time transfer station at this site was a cooperative action between
the City and the RTBIas it was anything but.
Councilman Strand felt it important that in addition to the issues in his
resolution, there has to be attention to the impact of this proposed station
on the City that would be adjacent to such a station. He did not believe
this process was undertaken to the extent that this site is the best site.
Councilman Mitchell believed there was a real credibility prod m with
the Regional Transit Board from the beginning. He felt they were/interested
in talking with the City about anything from the design plan, the concept
of shared use and so forth.
The motion passed 7-0.
8h. Sale of land Sale of land: Hwy. 7/Ottawa
Ave.
Councilman Friedman asked who selected the appraiser, and staff responded
the selection was made by the City Assessor.
It was moved by Cottnel-l-man—Me-1-and,—seconded—bY--Counci lman =8�c es—to araive
first reading, set second for March 16, 1987 and authorize summary publication.
The motion passed 7-0.
8i . Senior high parking Expansion of permit parking
Resolution 87-25 area near senior high school
It was moved by Councilman Meland, seconded by Councilman Strand, to waive
reading and adopt Re —87=25--eut -e-d 'Resolution- authors-ztflg permit
parking restrictions in the Park Senior High School area and repealing
Resolution No. 86-139."
The motion passed 7-0.
REPORTS FROM OFFICERS, BOARDS, COMMITTEES
9a. Hampshire Ave. vacation This report was ordered filed
by consent.
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March 2, 1987
41111
9b. Elderly/handicapped call-in Councilman Friedman said he
had given Council materials
he received from several municipal-
ities.
He said basically the call-in programs/S ne which people can enroll . They
call to a police department between certain- hours to report they are o.k.
If an individual is not heard from, they check up on the individual . He
felt this was a rare opportunity to put a program into operation first
rather than reacting after an incident occurs.
It was moved by Councilman Friedman, seconded by Councilman Mitchell , to
look into the possibility of instituting such a program in the City and
report back to Council on March 16.
Councilman Meland said that perhaps Council could look at the senior program
to see if something couldn't be worked out with its staff of volunteers.
Mayor Hanks said the seniors are continually looking for projects. He felt
if the program were presented to the senior board, there would probably
be volunteers to man the phones at the center and they could in turn report
to the police department should individuals not check in rather than having
calls come directly into the already busy police department.
Councilman Strand asked for the following information from staff: if volunteers
were not used; what would be the cost of the program to the City; what
is the level of participation in other communities. He asked for input
from the police department how this program would work with their existing
staff and how they would intend to carry out the program.
The motion passed 7-0.
9c. Park and Recreation Commission minutes
9d. HRA minutes
9e. Planning Commission minutes
All minutes were ordered filed by consent.
_UNFINISHED _BUSiNFSS
10a. Boards and Commissions
Appointment to the Metropolitan Airport Noise Abatement Council was deferred
to March 16, 1987.
NEW BUSINESS
lla. Braille Sports Foundation Gambling license renewal
The application was renewed by consent
4111
llb. Light rail transit It was moved by Councilman Strand,
Resolution 87-20 seconded by Councilman Friedman
to waive reading and adopt Resolution
87-20 entitled "Resolution supporting
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March 2, 1987
the efforts of Hennepin County to explore light rail transit."
The motion passed 7-0.
MISCELLANEOUS-
12a. Claims Weseloh vs. the City
Sandra Petersen, Minnetonka
Ray Brown, Minnetonka
Elizabeth Clark, St. Louis Park
By consent, the claims were referred to the City Clerk and City Attorney.
12b. Communications from the Mayor The Mayor said the City Manager's
work program would be discussed
after the meeting.
12c. Communications from City Manager The Assistant City Manager briefly
discussed the study session agenda
for March 9.
CLAIMS, APPROPRIATIONS, CONTRACT PAYMENTS
11110 13a. Verified claims It was moved by Councilman Meland,
seconded by Councilman Duffy to
approve the list of verified claims
prepared by the Director of Finance
dated March 2, 1987 in the amount of $446, 116.67 for vendor claims and
$11 ,518.65 for payroll claims and that the City Manager and City Treasurer
be authorized to issue checks in the appropriate amounts.
14. Adjournment It was moved by Councilman Friedman,
seconded by Councilman Mitchell that
the meeting be adjourned at 8:50 p.m.
10, 4-2< lit' ,
Mayor
j-
at meth, Recording Secretary
I
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