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HomeMy WebLinkAbout2015/07/06 - ADMIN - Minutes - City Council - Regular `/1St. Louis Park OFFICIAL MINUTES MINNESOTA CITY COUNCIL MEETING ST. LOUIS PARK, MINNESOTA JULY 6,2015 1. Call to Order Mayor Jacobs called the meeting to order at 7:32 p.m. Councilmembers present: Mayor Jeff Jacobs, Tim Brausen, Steve Hallfin, Gregg Lindberg, Anne Mavity, Susan Sanger, and Jake Spano. Councilmembers absent: None. Staff present: City Manager (Mr. Harmening), City Attorney (Mr Mattick), City Clerk (Ms. Kennedy), Chief Information Officer (Mr. Pires), Senior Planner (Mr Walther), Assistant Zoning Administrator (Mr. Morrison), Finance Supervisor (Mr. Heintz), Civic TV Coordinator (Mr. Dunlap), Communications and Marketing Manager (Ms. Larson), and Recording Secretary (Ms. Hughes). Guest: Brian Grogan(Moss & Barnett) la. Pledge of Allegiance lb. Roll Call 2. Presentations 2a. Recognition of Donations Mayor Jacobs expressed the City Council's thanks and appreciation to Northland Aluminum/Nordic Ware for its $350 donation for food and supplies for the 2015 Fire Department Open House and to Cub Foods for its $200 gift card for the purchase of food and supplies for the 2015 Fire Department Open House 3. Approval of Minutes 3a. Study Session Meeting Minutes June 8, 2015 The minutes were approved as presented. 3b. Special Study Session Meeting Minutes June 15, 2015 The minutes were approved as presented. 3c. City Council Meeting Minutes June 15,2015 The minutes were approved as presented. 4. Approval of Agenda and Items on Consent Calendar NOTE: The Consent Calendar lists those items of business which are considered to be routine and/or which need no discussion. Consent items are acted upon by one motion If discussion is City Council Meeting -2- July 6, 2015 desired by either a Councilmember or a member of the audience, that item may be moved to an appropriate section of the regular agenda for discussion. 4a. Accept for filing City Disbursement Claims for the period of April 25, 2015 through June 26, 2015 4b. Moved to 8e 4c. Adopt Resolution No. 15-088 accepting donations to the Fire Department 4d. Adopt Resolution No. 15-089 authorizing installation of stop signs on Kentucky Avenue & W. 18th Street 4e. Adopt Resolution No. 15-090 authorizing the revision of parking restrictions on 5320 W. 23rd Street Councilmember Lindberg requested that Consent Calendar item #4b be removed and placed on the Regular Agenda. It was moved by Councilmember Lindberg, seconded by Councilmember Mavaty, to approve the Agenda and items listed on the Consent Calendar as amended to move Consent Calendar item #4b to the Regular Agenda as item #8e, and to waive reading of all resolutions and ordinances The motion passed 7-0 5. Boards and Commissions -None 6. Public Hearings 6a. Public Hearing — Private Activity Revenue Bond Refunding & Approval of Resolution—Jones Harrison Residence Project. Resolution No. 15-091. Mr Heintz presented the staff report and explained that Jones Harrison Residence issued private activity revenue bonds in 2005 through the City of Minneapolis and is proposing to reissue the bonds in an amount up to $13 million. He advised that Minneapolis agreed to grant host approval to allow the bonds to be issued by the City of St. Louis Park and the bonds will provide an administrative fee to the City of approximately $240,000 over the 25-year life of the bonds and the City uses this administrative fee in its Housing Rehabilitation Fund. He introduced the City's bond counsel, Ms Julie Eddington from Kennedy & Graven. Mayor Jacobs opened the public hearing. No speakers were present Mayor Jacobs closed the public hearing Councilmember Sanger requested further information regarding why the City would issue bonds to benefit an organization outside the City Ms. Eddington explained that Jones Harrison asked the City of Minneapolis to refinance the bonds and Minneapolis had a new requirement that bonds be issued in $100,000 denominations and the 2005 bonds were issued in $5,000 denominations. She stated the underwriter wanted to keep the bonds in $5,000 denominations in order to sell them to City Council Meeting -3- July 6, 2015 those who currently own the 2005 bonds. She stated Jones Harrison had provided security, including a promise to pay the bonds under a mortgage agreement and the obligations were secured by a guarantee of the Jones Harrison Foundation, which has approximately $8 million in funds available She stated the City can issue tax exempt bonds for facilities in other cities as long as the host city provides host approval. The City of Minneapolis held a public hearing in June and was scheduled to provide final approval on Friday, July 10`h Councilmember Lindberg asked about the City's risk, if any, in issuing this debt in return for an administrative fee Ms. Eddington replied the City can no longer issue bank qualified bonds for the rest of the year and it was her understanding the City had no plans to issue additional debt this year. She stated the City was a conduit borrower so all risk would be on the borrower and the borrower promised to fully indemnify the City with respect to any default. Councilmember Brausen requested confirmation that this transaction would have no impact on the City's bond rating. Ms. Eddington replied that this was correct It was moved by Councilmember Spano, seconded by Councilmember Mavity, to adopt Resolution No. 15-091 Authorizing the Issuance, Sale, and Delivery of the City's Revenue Bonds for the Benefit of Jones-Harrison Residence, which shall be Payable Solely from Revenues Pledged Pursuant to the Indenture and the Loan Agreement, Approving the Form of and Authorizing the Execution and Delivery of the Revenue Bonds and Related Documents The motion passed 7-0 6b. Public Hearing Liquor Barrel Off-Sale Liquor License—New Ownership Ms. Kennedy presented the staff report and stated the existing liquor establishment, owned by MM Liquor Barrel, Inc., was in the process of selling the business to Yayin Gadol, LLC. The new owner submitted an application to obtain an off-sale intoxicating liquor license. She advised that the Police Department conducted a full background investigation and found nothing to warrant denial of the license. Mayor Jacobs opened the public hearing. No speakers were present. Mayor Jacobs closed the public hearing. It was moved by Councilmember Mavity, seconded by Councilmember Spano, to approve Off-Sale Intoxicating Liquor License for Yayin Gadol, LLC, dba Liquor Barrel, located at 5111 Excelsior Boulevard,for the license term through March 1, 2016 The motion passed 7-0 6c. Inchin Corporation dba Blue Fox Bar & Grill — On-Sale Intoxicating and On-Sale Sunday Liquor License City Council Meeting -4- July 6, 2015 Ms. Kennedy presented the staff report and explained that Inchin Corporation dba Blue Fox Bar & Grill applied for an on-sale intoxicating and on-sale Sunday liquor license for a restaurant located at 5377 W. 16th Street She advised that the Police Department conducted a full background investigation and did not find anything that would warrant denial of the license. Mayor Jacobs opened the public hearing No speakers were present. Mayor Jacobs closed the public hearing. It was moved by Councilmember Brausen, seconded by Councilmember Lindberg, to approve application from Inchin Corporation, dba Blue Fox Bar & Grill,for an On-Sale Intoxicating and On-Sale Sunday Liquor License to be located at 5377 W 16th Street, with the license term through March 1, 2016 The motion passed 7-0 6d. CenturyLink Application for Cable TV Franchise Mr. Dunlap presented the staff report and advised that the City publicized the public hearing through its normal process and also via social media and received 30 comments, copies of which were distributed to the City Council and made part of the official record. He introduced Mr. Toby Keeler from the Telecommunications Commission and Mr. Brian Grogan from Moss & Barnett. Mr. Grogan reminded residents that Moss & Barnett represented the City and was advising the City on the competitive franchise process. The intent of the public hearing was to receive comment on the franchise application and to consider CenturyLink's financial, legal, and technical qualifications. He referenced the June 2015 report from Moss & Barnett regarding the qualifications of the applicant and recommendations to the City. He stated that CenturyLink is the parent company based in Monroe, Louisiana, and is the third largest telecommunications company in the United States. He explained that the company that applied for the cable TV franchise is a subsidiary known as Qwest Broadband Services, Inc. (QBSI) and as of May 2015, QBSI was registered as a foreign corporation in Minnesota in good standing and not subject to any UCC filings, tax liens, or judgments He stated that CenturyLink offers a fiber optic IPTV service that will use CenturyLink's existing infrastructure in the right-of-way to provide their product He pointed out that customers would have to buy CenturyLink's broadband service in order to receive the cable TV product He advised that Moss & Barnett contacted several cities served by CenturyLink and asked a series of questions regarding performance, franchise compliance, billing, and complaints and the responses were fairly clean with the exact answers provided in the staff report He stated there was no objective criteria to rely upon as it relates to QBSI's financial qualifications Moss & Barnett requested information on QBSI but CenturyLink declined to provide standalone financial statements or projected financial information for its future operations. He advised it is Moss & Barnett's opinion that there is not a basis for the City to deny the request based on a lack of financial qualifications and they believe CenturyLink possesses the requisite qualifications and appears to have sufficient funding to finance, operate, and bring its cable system online in the City based on the information reviewed for CenturyLink Mayor Jacobs opened the public hearing. City Council Meeting -5- July 6, 2015 Mr. Tyler Middleton, CenturyLink Vice President of Operations for Minnesota, stated that CenturyLink is excited about the opportunity to bring competition and choice to this market He stated that their Prism product is currently available in 14 markets, including LaCrosse, Denver, Phoenix, and Las Vegas. He stated they are trying to leverage as much of their existing infrastructure as possible by using existing copper telephone lines and they have been building the fiber to the home network and have over 100,000 homes enabled for fiber to the home He stated they have an ordinance in place with Minneapolis for a franchise and on June 1St began offering Prism to Minneapolis residents and they look forward to bringing this opportunity to St. Louis Park residents. He then introduced Mr. Patrick Haggerty, CenturyLink Director of State Regulatory and Legislative Affairs. Councilmember Sanger requested confirmation that customers must sign up for both internet service and cable television Mr. Haggerty replied this was correct, adding this is purely a marketing strategy and if they find a strong demand to offer the products separately, they can change their strategy. Councilmember Sanger asked if anyone in St. Louis Park who wanted to sign up for internet service and cable TV would be able to do so assuming they had all the required technical connections. She also asked if there were mechanisms in place to connect those areas that do not currently have the required connections Mr. Middleton replied that anyone would be able to sign up for internet service and cable TV assuming they meet all the technical requirements. He stated that CenturyLink will continue to reinvest in the market and its objective is to upgrade those connections, depending on its success in this market Councilmember Sanger stated it appears there are some conflicts in the current governing state and federal laws and to the extent that St. Louis Park is drawn into any litigation regarding the conflicting governing statutes, it was her expectation that the City would be indemnified for its legal costs. Mr. Haggerty confirmed that CenturyLmk would offer indemnification to the City. Mr. Middleton stated that the franchise agreement would include appropriate language indemnifying the City for its legal expenses. Mayor Jacobs closed the public hearing 8. Requests, Petitions, and Communications from the Public—None 9. Resolutions, Ordinances, Motions and Discussion Items 8a. Approve CenturyLink's Legal, Technical & Financial Qualifications for a Competitive Cable TV Franchise. Resolution No. 15-092. It was moved by Councilmember Brausen, seconded by Councilmember Mavity, to adopt Resolution No. 15-092 Regarding Findings of Fact with Respect to the Proposal of City Council Meeting -6- July 6, 2015 Qwest Broadband Services, Inc, d/b/a CenturyLink, Inc, for a Cable Communications Franchise The motion passed 7-0 8b. Conditional Use Permit: West End Childcare Center, 2230 Edgewood Avenue South. Resolution No. 15-093. Mr. Morrison presented the staff report and explained that the applicant proposed to operate a group day care in the north end of the multi-tenant building at 2230 Edgewood Avenue South. He stated the property is zoned Industrial Park and a group daycare is allowed in the Industrial Park district by CUP with conditions, including a condition requiring 40 square feet of outside play area per child. The applicant proposed to provide 2,691 square feet of outside play area and met the minimum setbacks for the outside play area. He stated that a parking analysis was completed for all of the uses in the building and the proposed group day care met the City's parking requirements He noted that on the south side of the building there is a loading dock that requires trucks to park at an angle and the property owner agreed to modify this area so that access to the site is maintained throughout the day. He stated the Planning Commission reviewed the application and received one comment expressing concern about traffic in the area during drop-off and pickup times Ms Sheila Dise, 6700 Elliot View, stated they have tried to get a new playground in the past and were told there is too much truck traffic in the area She stated they do not believe an industrial area is appropriate for a day care. Mr. Morrison stated that a day care is a legal use allowed in the Industrial Park district by CUP. He stated the majority of the play area is in a fenced-in area in the back protected by a second fence and access to the play area is only available through the building. Councilmember Spano expressed concern about traffic from the businesses in the building and stated those businesses need to be made aware of this new day care use and to urge caution when driving in the area. Councilmember Sanger requested that staff monitor the intersection at Edgewood and Cedar Lake Road to see if a traffic light is warranted at the intersection It was moved by Councilmember Brausen, seconded by Councilmember Mavity, to adopt Resolution No. 15-093 Granting Conditional Use Permit under Section 36-243(d)(4) of the St Louis Park Ordinance Code Relating to Zoning to Permit a Group Daycare for Property Zoned IP Industrial Park District located at 2230 Edgewood Avenue South The motion passed 7-0 8c. First Reading of Zoning Ordinance Amendment Related to Signage Mr Morrison presented the staff report and provided an explanation of the proposed amendments to the Zoning Ordinance to increase the maximum sign area allowed for properties over 100,000 square feet in the Industrial and Business Park zoning districts and to apply the same sign regulations as allowed in the C-2 General Commercial district to the M-X district and to clarify the regulations pertaining to multi-tenant exemption City Council Meeting -7- July 6, 2015 He stated the Planning Commission held a public hearing regarding the proposed amendments and recommended approval. Councilmember Sanger expressed concern about the amendment to the M-X district and stated the M-X districts are mostly residential and people living in the apartments could be forced to look at unsightly commercial signs She asked if the language could be modified to assure that residents would not have to stare at visual blight. Mr. Morrison stated that multi-tenant signage can only be applied to a tenant's wall space and cannot go above the space of the commercial tenant with the only exception being that if a property owner, e.g., Excelsior& Grand, took their general allocation for signage and applied it anywhere on the property. Councilmember Mavity provided an example of the CVS sign at Excelsior & Grand that was not well received by the neighbors and stated she wanted to make sure the proposed amendment was not somehow facilitating additional signs and/or adding blight. It was moved by Councilmember Sanger, seconded by Councilmember Mavity, to remove the section of the proposed Ordinance amendment regarding the M-X district in order to have further study session discussion Councilmember Spano stated that Grand Avenue in St. Paul had a signage district with specific standards that Council might find useful pertaining to this discussion. Mr Harmening advised that Council could approve the First Reading as submitted and at the time of the Second Reading, staff would provide Council with further information and visual depictions of the proposed amendment and if Council was still not comfortable with the amendment, the portion pertaining to the M-X district could be pulled with the remainder of the Ordinance adopted at Second Reading. Councilmember Sanger withdrew her motion Councilmember Mavity withdrew her second of the motion It was moved by Councilmember Spano, seconded by Councilmember Lindberg, to approve First Reading of Ordinance Amending Chapter 36 of the St Louis Park City Code Pertaining to Signage, and to set Second Reading for July 20, 2015 Councilmember Mavity requested that staff provide Council with sketches in different environments and other options that might be available. Councilmember Sanger requested that the drawings depict the signs and view of the signs from the residential units. The motion passed 7-0 8d. Appeal of BOZA Decision — St. Louis Park Properties, Mr. Todd Jones, Chief Manager, 5305 Parkdale Drive. Resolution No. 15-085. Mr. Morrison presented the staff report and provided background information regarding the variance request. He stated the property was being converted into an indoor self- City Council Meeting -8- July 6, 2015 storage facility and the use is allowed in the Industrial Park district He stated the applicant indicated they would like to enhance the façade of the building as shown in the renderings and plans to remove some of the bituminous on the site and replace it with a rain garden. He stated that BOZA considered the variance request and was not able to pass a motion to deny or approve the variance. As a result, the variance was considered denied and the applicant appealed the BOZA action. Council conducted a public hearing on June 15, 2015, and voted 4-2 to approve the variance with the conditions that the façade improvements be made as presented and that the asphalt be replaced with a rain garden as presented It was moved by Councilmember Brausen, seconded by Councilmember Hallfin, to adopt Resolution No. 15-085 Adopting Findings and Decision Reversing the Board of Zoning Appeals (BOZA) Denial of St Louis Park Properties'Application for Variance. Councilmember Sanger stated she did not believe the request met the criteria for granting a variance and did not believe the conditions contained in the resolution met the conditions for granting a variance. She stated that variances were granted based on whether they were necessary for the property owner to make reasonable use of their property and, in this case, a business was making reasonable use of their property. She stated there was no claim that there is anything unusual about the property itself that is contributing to the property owner's inability to use the property and no claim of hardship. She opined this came down to the property owner wanting to make more money by having more usable floor space in the building. She stated that economic considerations were not a valid basis for granting a variance and if this variance was approved it would provide a competitive advantage to this property owner compared to other property owners in the storage business that are complying with the City's zoning requirements. Councilmember Spano stated this was a matter of equity and he opposed the variance as well. Councilmember Brausen felt the greenest use of any building was to reuse it and this variance provided an opportunity to repurpose a building and maximize use of the space. He felt that rigidly applying the Zoning Code in this case seemed silly and asked for Council's support in approving the variance. The motion passed 4-3 (Councilmembers Mavity, Sanger, and Spano opposed) 8e. Designate Polling Places and Appoint Election Judges for 2015 Election. Resolution No. 15-087. Councilmember Lindberg wished to publicly thank the City's election judges for their willingness to serve in this important public service. It was moved by Councilmember Lindberg, seconded by Councilmember Sanger, to adopt Resolution No. 15-087 Designating Polling Places and Appointing Election Judges for the 2015 Municipal Primary and Municipal/School District/State Special General Elections The motion passed 7-0 City Council Meeting -9- July 6, 2015 Councilmember Mavity wished to note that the City's primary election typically has a 5% or less turnout, which is another reason for the City to consider ranked choice voting because it would be more efficient. 10. Communications Councilmember Lindberg thanked City staff for another great job on the fireworks at Aquila. He also reminded residents of the ribbon cutting on Thursday, July 16th, at 10.00 a.m. for the Highway 7 and Louisiana Avenue project Councilmember Sanger also thanked City staff for the excellent fireworks at Aquila and thanked Hollywood Pyrotechnics, the company that puts on the fireworks show. Councilmember Hallfin agreed that the fireworks were great and suggested that the City consider adding choreographed music to the fireworks show 10. Adjournment Mayor Jacobs adjourned the meeting at 8:53 p.m \di 96L, ylfi Melissa Kennedy, City Clerk Jeff Jaco 2s, yo