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HomeMy WebLinkAbout1992 11-09 CCM Regular Session MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION NOVEMBER 9, 1992 CITY HALL CALL TO ORDER The Brooklyn Center City Council met in regular session and was called to order by Mayor Todd Paulson at 7 p.m. ROLL CALL Mayor Todd Paulson, Councilmembers Celia Scott, Jerry Pedlar, Dave Rosene, and Philip Cohen. Also present were City Manager Gerald Splinter, Director of Public Works Sy Knapp, Finance Director Paul Holmlund, Director of Planning and Inspection Ron Warren, City Attorney Charlie LeFevere, Personnel Coordinator Geralyn Barone, Public Works Coordinator Diane Spector, and Council Secretary Nancy Berg. OPENING CEREMONIES A moment of silence was observed. OPEN FORUM Mayor Paulson noted the Council had received no requests to use the open forum session this evening. He inquired if there was anyone present who wished to address the Council. There being none, he continued with the regular agenda items. COUNCIL REPORTS Mayor Paulson reported a letter from Village Properties has been received requesting the City Council delay action on the request to convert up to eight two- bedroom apartment sets to three - bedroom and one - bedroom units because the owners of Village Properties are out - of -town. The Council agreed to delay action until December 14, 1992. Mayor Paulson announced the winners of the October recycling awards. He congratulated Jan Scholla, Rod Johnson, Donald Kermeen and Robert Marcus. Councilmember Rosene reported he met with the City Manager and the Police Chief last Wednesday in regard to the citizen's forum on public safety. Councilmember Rosene further stated ro ress is being made and a P g good plan will be implemented i g n the near future. g . P 11/9/92 - 1 - APPROVAL OF AGENDA AND CONSENT AGENDA Mayor Paulson inquired if any Councilmembers requested any items be removed from the consent agenda. Councilmember Scott requested item 7b be removed from the Consent Agenda. APPROVAL OF MINUTES OCTOBER 26. 1992 - REGULAR SESSION There was a motion by Councilmember Scott and seconded by Councilmember Rosene to approve the minutes of the October 26, 1992, meeting as printed. The motion passed unanimously. NOVEMBER 3. 1992 REGULAR SESSION There was a motion by Councilmember Scott and seconded by Councilmember Cohen to approve the minutes of the November 3, 1992, meeting as printed. The motion passed: four ayes, one abstain. Mayor Paulson abstained from voting. RESOLUTIONS RESOLUTION NO. 92 -252 Member Celia Scott introduced the following resolution and moved its adoption: RESOLUTION ACCEPTING WORK PERFORMED, APPROVING FINAL PAYMENT, AND APPROVING SETTLEMENT AGREEMENT WITH BONDING COMPANY FOR WATER DISTRIBUTION SYSTEM IMPROVEMENT PROJECT NOS. 1990 -03 AND 1990 -03N AND REPLACEMENT OF ENTRANCE DRIVE TO LIFT STATION #1, IMPROVEMENT PROJECT NO. 1992 -11, CONTRACT 1992 -H The motion for the adoption of the foregoing resolution was duly seconded by member Dave Rosene, and the motion passed unanimously. RESOLUTION NO. 92 -253 Member Celia Scott introduced the following resolution and moved its adoption: RESOLUTION APPROVING DEVELOPMENT AGREEMENT WITH EVERGREEN DEVELOPMENT GROUP The motion for the adoption of the foregoing resolution was duly seconded by member Dave Rosene, and the motion passed unanimously. 11/9/92 -2- RESOLUTION NO. 92 -254 Member Celia Scott introduced the following resolution and moved its adoption: RESOLUTION APPROVING AGREEMENT WITH MINNESOTA DEPARTMENT OF TRANSPORTATION STATE AID DIVISION PROVIDING FOR REIMBURSEMENT OF COSTS INCURRED FOR CERTIFICATION OF CITY PERSONNEL The motion for the adoption of the foregoing resolution was duly seconded by member Dave Rosene, and the motion passed unanimously. RESOLUTION NO. 92 -255 Member Celia Scott introduced the following resolution and moved its adoption: RESOLUTION AMENDING BROOKLYN CENTER ADVISORY COMMISSION BYLAWS The motion for the adoption of the foregoing resolution was duly seconded by member Dave Rosene, and the motion passed unanimously. LICENSES There was a motion by Councilmember Scott and seconded by Councilmember Rosene to approve the following list of licenses: CHRISTMAS TREE SALES LOT P.Q.T. Company 5616 - 101st Avenue N. 5040 Brooklyn Boulevard Jerry's NewMarket 5801 Xerxes Avenue N. GARBAGE AND REFUSE COLLECTION VEHICLE K & S Sanitation 24 Crossway Drive MECHANICAL SYSTEMS D J's Heating and Air Cond. 6060 Lebeaux Avenue S.B.S. Mechanical, Inc. 7160 Madison Avenue W. RENTAL DWELLINGS Renewal: Gar -Nan Management Co. Humbolt Courts Walt Halberg 1326 - 67th Lane N. Marlyn and Gayle Kruse 2101 - 71st Avenue N. The motion passed unanimously. 11/9/92 -3- PLANNING COMMISSION ITEMS The City Manager introduced Planning Commission Application No. 92014 submitted by the 50's Grill restaurant requesting site and building plan approval Q g g p pp to construct an approximate 12'x40' addition to the south side of the 50's Grill restaurant at 5524 Brooklyn Boulevard. I This application was considered by the Planning Commission at its October 29, 1992, meeting and approval was recommended. The Director of Planning and Inspection used transparencies illustrating elevations of the building, a survey of the property, and a map of the area. He explained the addition will be for kitchen expansion, but not for additional customer seating. The Director of Planning and Inspection informed Council the Planning Commission recommended approval of this application subject to five conditions: listed on pages two and three of the October 29, 1992, Planning Commission minutes. Mayor Paulson asked if this application required an ordinance amendment. The Director of Planning and Inspection answered yes, the ordinance amendment was effective on November 5, 1992. Councilmember Scott asked if there will be extra fire protection on the south wall. The Director of Planning and Inspection answered there will be. See A There was a motion by Councilmember Pedlar and seconded by Councilmember Rosene to approve Planning Commission Application No. 92014 submitted by the 50's Grill restaurant subject to the following conditions. 1. Building plans are subject to review and approval by the Building Official with respect to applicable codes prior to the issuance of permits. 2. Grading, drainage, utility and berming plans are subject to review and approval by the City Engineer, prior to the issuance of permits. 3. A site performance agreement and supporting financial guarantee (in an amount to be determined by the City Manager) shall be submitted prior to the issuance of permits to assure completion of all approved site improvements. 4. The building addition is to be equipped with an automatic fire extinguishing system to meet NFPA standards and shall be connected to a central monitoring device in accordance with Chapter 5 of the City Ordinances. 5. Plan approval is exclusive of all signery which is subject to Chapter 34 of the City Ordinances. Councilmember Rosene stated he hoped the ordinance amendment would not change the look of our community. 11/9/92 -4- The motion passed unanimously. See B. The City Manager introduced Planning Commission Application No. 92003 submitted by Phillips 66 Company. This application is a companion to Application No. 92001. Explained that originally, it was a setback variance; now, it is a greenstrip variance. This application was tabled by the City Council at its February 10, 1992, meeting with the applicant's consent. This application was reconsidered by the Planning Commission at its October 29, 1992, meeting and denial was recommended. The City Manager then introduced ty g ommission Application No. 92 Planning pp 001 submitted by Phillips 66 Company requesting site and building plan approval to construct a gas station/convenience store /car wash at 6901 Brooklyn Boulevard. This application was tabled by the City Council at its February 10, 1992, meeting with the consent of the applicant and direction to pursue a study of Brooklyn Boulevard which should guide consideration of this proposal. The applicant has submitted revised plans which, under City Ordinance, must be reviewed by the Planning Commission. The Planning Commission reconsidered this application at its October 29, 1992, meeting and approval was recommended subject to the adoption of an ordinance amendment. The City Manager then introduced Planning Commission Application No. 92002 submitted by Phillips 66 Company requesting preliminary plat approval. This application was also tabled by the City Council with the applicant's consent at its February 10, 1992, meeting, but did not have to be reconsidered by the Planning Commission. Approval of this application is also recommended. The City Manager recommended the Council consider all three applications together. He stated these applications were tabled by the City Council on February 10, 1992, following review of the applications and review of a recommendation by the Planning Commission to deny Application No. 92001 and Application No. 92003. He further explained the Planning Commission had recommended approval of the preliminary plat, Application No. 92002, subject to three conditions of approval. The Director of Planning and Inspection further explained the three applications to the Council, and used transparencies to further clarify the current proposal from Phillips 66 Company. He stated the Planning Commission had recommended denial of the variance, and recommended approval of the development plans contingent on an ordinance amendment being adopted to allow the Council an option other than the 15 foot greenstrip. ,Mayor Paulson questioned why this matter was before the Council prior to the completion of the Brooklyn Boulevard study. The Director of Planning and Inspection answered the applications are back for reconsideration at the applicants request because they have offered revised plans. 11/9/92 -5- Jon Baccus, Phillips Petroleum Company, explained approximately two years ago Phillips developed a design plan which would function well from customer and operational standpoints, and would meet all city code requirements. He further explained, thereafter, Phillips was advised by City staff that 18 feet along 69th Avenue was needed for possible future widening of 69th Avenue. Mr. Baccus stated the additional 18 feet does not allow Phillips to meet all greenstrip requirements. He showed Council an illustration of the landscaping proposed by Phillips which would include a keystone wall similar to what has been utilized along 69th Avenue. Mr. Baccus informed Council that Phillips is agreeable to using brick on its building instead of the stone they normally use as requested by the City. Mayor Paulson asked if the reason for Phillips' request for Council to decide this matter before the completion of the Brooklyn Boulevard Study, was because of the frontage road possibly being proposed. Mr. Baccus answered no. The City Manager stated the frontage road is only in the discussion stages. He explained the road being discussed is really not a frontage road, but really an access drive going from business to business. The City Manager also stated the consultant, Timothy J. Griffin of Dahlgren Shardlow and Uban, and the Planning Commission recommended the City continue to enforce the setback of 50 feet. Councilmember Rosene asked if the individual businesses agree to have an access road, who would pay for it -- the businesses to share, or just the City? The City Manager answered discussions are in the preliminary stages, and the question of financing has not been looked at. The Director of Planning and Inspection stated with respect to the Brooklyn Boulevard Study, the consultants were recommending the City maintain the 50 -foot setback at this time which might accommodate an access drive if needed. Councilmember Cohen asked staff to illustrate on the map the possible site for the access road. The Director of Planning and Inspection showed Council the location, and explained in the current comprehensive plan, the whole triangular area currently, b 69th , Y Y Lee and Brooklyn Boulevard is recommended for commercial land use in the future. Mayor Paulson suggested the Council delay action on this matter until the Brooklyn Boulevard Study is complete. See C. The Planning Commission did not believe the standards for variance were met in this case. The Planning Commission further suggested if the Council is going to vary, do not vary in the setback, just in the 15 -foot greenstrip. Mayor Paulson asked the Director of Planning and Inspection for his recommendation. The Director of Planning and Inspection replied (See D) follow the Planning Commission's recommendation and amend the zoning ordinance to allow this kind of consideration imsimilar situation. 11/9/92 -6- Mayor Paulson opened the meeting for the purpose of a public hearing on Planning Commission Application No. 92003 submitted by Phillips 66 Company, is a request for a variance from Section 35 -700 of the Zoning Ordinance to allow less than a 15' greenstrip along 69th Avenue North and along Brooklyn Boulevard at 6901 Brooklyn Boulevard; Planning Commission Application No. 92001 submitted by Phillips 66 Company, a request for site and building plan approval to construct a gas station/convenience store /car wash; and Application No. 92002 submitted by Phillips 66 Company, a request for preliminary plat approval at 8:16 p.m. He inquired if there was anyone present who wished to address the Council. Randy Rau, 6849 Brooklyn Boulevard, stated he owns the Holiday Station, and the Phillips proposal is too large for the property. Mr. Rau stated he does not agree with a 3 -foot keystone wall as a replacement for grass, and the 18 -foot dedication is important to the local businesses. He asked the Director of Planning and Inspection to show where the car wash will be located, and asked if the car wash will have air- powered doors, as they are very loud and will disturb the neighbors, or electric doors which do not make much noise. The Director of Planning and Inspection showed the proposed location of the car wash, and answered he did not know what type of doors Phillips was planning on using. Bob Grosshans, 6920 Lee Avenue North, stated the site is too small, and recommended the City Council deny the applications. Gene Wright, owner of the four -plex next to the proposed car wash, which houses Northwest Residence requested a visual and sound barrier be established between the applicant's property and his property. Mayor Paulson asked the Director of Planning and Inspection if there was a provision for visual and sound barriers. The Director of Planning and Inspection answered there is a proposal for a 6 -foot wood fence along the north and west property lines. Mr. David Nelson, Phillips 66 consultant, stated he would like to know more about the plans for an access road. He further stated Phillips 66 plans to install benches along the sidewalk because of the loss of greenstrip, and the doors on the car wash will be electric doors. Mr. Nelson stated this application is an opportunity to make something of Brooklyn Boulevard, to develop Brooklyn Boulevard without the City expending any money. Mr. Nelson urged the Council to consider Phillips proposal. Don Lowry, 6914 Lee Avenue North, stated he owns the property at the tip of the triangle. He explained he is against this proposal because of the noise and appearance. Mr. Wright asked Mr. Baccus why Phillips wants this property, and why Phillips purchased it prior to receiving approval to build. Mr. Baccus responded when Phillips began working on the site, the building met all requirements -- the property is zoned for a gas station. 11/9/92 -7- There was a motion by Councilmember Scott and seconded by Councilmember Pedlar to close the public hearing at 8:35 p.m. The motion passed unanimously. Councilmember Scott stated there are many problems with this application including the 15- foot greenstrip minimum. She pointed out if Phillips erects a keystone wall, there will not even be one foot of greenstrip in some areas. Councilmember Scott stated as a City Council we have an obligation to other business owners who have complied with our ordinances. She stated she believes the applicant can alter the plans to meet the requirements and that the 15 foot greenstrip is a minimum requirement for a Brooklyn Boulevard study. Councilmember Cohen respected Councilmember Scott's comments. He explained, however, in Brooklyn Center's RFP, this City Council did make the development proposal for 6901 Brooklyn Boulevard a high priority. He stated this property needs to be developed, and the City has an applicant who will develop the property with their own dollars, not with City money. Councilmember Cohen further stated if the Council wants to move forward with the Brooklyn Boulevard beautification, this proposal meets the requirements. He believed the applicant has brought forward a plan, and it is possible it could be improved upon. He further stated he was in favor of this application. Councilmember Pedlar recalled the Council tabled this matter and asked the consultant to look at this application and the application by the 50's Grill. He stated the 50's Grill has now be dealt with. He further stated he agrees with both Councilmembers Scott and Cohen. Councilmember Pedlar expressed concern about the lack of progress on Brooklyn Boulevard. He reminded Council this is an opportunity to move forward. He agreed there are issues to be dealt with such as the noise and the upkeep of property. Councilmember Pedlar asked the applicants to work with the abutting property owners to alleviate these problems. Councilmember Pedlar read the following statement from the consultant's report: "Apparently by design, the Phillips and Amoco sites are not interested in achieving such a relationship, but rather only stating their corporate identity and presence." He asked for an explanation. The Director of Planning and Inspection answered the consultant was suggesting Phillips follow the architecture north of 69th Avenue, and to use some imagination with their. See E. Mayor Paulson agreed with many of the concerns of Councilmember Scott. He stated the Council has not really received an answer as to why the applicant brought these applications to the Council before the completion of the Brooklyn Boulevard Study. Mayor Paulson stressed the importance of looking at the existing businesses and what this will do to them. He asked the Council to have some patience in this matter stating Council has been consistent in approving anything that comes before us. Mayor Paulson pointed out the opposition from residents and from the consultants. He quoted the consultant: 11/9/92 -8 - "The purpose of the Brooklyn Boulevard Study is to prepare a plan for the economic preservation and redevelopment of Brooklyn Boulevard. To that end DSU has been commissioned to prepare a plan which integrates economic development requirements and regional and local transportation needs with urban design principles that will create a sense of place that is Brooklyn Boulevard. If the study is to be successful, it will have to do away with rubber stamp development prototypes and relentless traffic regulations, while retaining their economic and planning integrity. Then, through the creative application of urban design principles and civic priorities, a distinctive environment for Brooklyn Boulevard will be created that meets the respective and not necessarily incompatible objectives of an aesthetic landscape, successful commerce and the efficient movement of multi -modal traffic." Mayor Paulson stated he has no problem with a gas station eventually going on this property; but he believed the applicant should comply with the City's regulations. Councilmember Rosene stated there is no single correct vote; there are excellent arguments on both sides. He agreed until some of these problems are worked out, it is not possible to vote on this matter. Councilmember Rosene suggested the applicant agree to continue this matter until the Brooklyn Boulevard Study is complete, and work with the neighboring residents to work out the noise and visual barrier problems. The City Attorney asked the Director of Planning and Inspection what the limitations are in the zoning ordinance upon which City Council would act on these kinds of applications. The Director of Planning and Inspection reported under the zoning ordinance, there are certain time limits. He further explained the Planning Commission has up to 60 days to make its recommendation, which it has, and then the City Council has another 30 days after that to make a final decision. The City Attorney stated unless the Brooklyn Boulevard Study is going to be completed and implemented within 30 days, the applicant can insist on a decision on these applications within that time limit; however, the applicant is free to waive this time limit. Councilmember Rosene summarized the Planning Commission has made their recommendation to approve two of the applications with the third application recommended for approval contingent upon the City Council adopting an ordinance amendment to allow a Council approved substitute for the 15 -foot greenstrip requirement adjacent to public right -of -way. Councilmember Rosene asked if the ordinance is changed, will the Council be within the 30 -day requirement. The City Attorney answered no, because the Planning Commission then would need to publish the proposed ordinance change a two public hearing would need to be held by the Council following publication of the amendments. Councilmember Scott stated the real question for the Council is the variance request for the greenstrip. She stated the site plan cannot be approved if the variance is not approved. 11/9/92 -9- The City Attorney stated everything is contingent upon the plat approval. He explained the Council can legally approve or disapprove. The Director of Planning and Inspection suggested if Council denies these applications, that Council direct staff to prepare a resolution outlining Council's reasons for denial to be brought back for the Council's consideration. Councilmember Rosene expressed his uneasiness about doing this sort of creative platting and asked if it is common for an applicant to request such changes. The Director of Planning and Inspection stated the Council cannot ignore the 18 -feet right -of -way requested by Hennepin County. Councilmember Cohen asked if the 18 -feet dedication is required right now. The Director of Planning and Inspection explained Hennepin County has advised staff it will need, at a minimum, 18 feet to widen 69th Avenue. The Director of Public Works advised Council, in his opinion, these improvements to 69th Avenue and the replanting causes the need for the rights of why dedication will take place in 5 to 10 years. There was a motion by Councilmember Rosene and seconded by Mayor Paulson to direct staff to prepare a resolution for denial of Planning Commission Application No. 92002 submitted by Phillips 66 Company is a request for preliminary plat approval. Vote on the motion: three ayes, two nays. The motion passed. Councilmembers Cohen and Pedlar voted nay. There was a motion by Councilmember Rosene and seconded by Councilmember Scott directing staff to prepare a resolution for denial of Planning Commission Application No. 92003 submitted by Phillips 66 Company. Vote on the motion: four ayes, one nay. The motion passed. Councilmember Pedlar voted nay. There was a motion by Councilmember Scott and seconded by Councilmember Rosene directing staff to prepare a resolution for denial of Planning Commission Application No. 92001 submitted by Phillips 66 Company. Councilmember Cohen opposed the motion stating this application is an opportunity for Brooklyn Center. He explained it is not going to be easy to develop the properties on Brooklyn Boulevard. Councilmember Scott stated she has no problem with the concept of a filling station on this property, however she stated she will not approve the variance. Councilmember Cohen agreed a variance is not the way to go, however the Planning Commission did give Council an option. He stated he would like to reserve the right to introduce a resolution to approve an ordinance change as recommended by the Planning Commission. The City Attorney suggested staff prepare findings for Council's review at the next Council meeting. 1119/92 - 10 - Councilmember Cohen again suggested Council carefully consider these applications. The City Attorney pointed out the Council will not be voting on these resolutions until the next Council meeting on November 23, 1992. Councilmember Scott asked the City Attorney if the applicant submitted a revised plan, would it have to go back to the Planning Commission prior to going before the Council. The City Attorney answered if the changes made were not substantial, then it would not have to be referred back to the Planning Commission. He further explained in this case, however, if the applicant came back with a proposal which did not require a variance, then the Council would have to decide if this public hearing would be adequate or if it should go back to the Planning Commission for reconsideration. Vote on the motion: three ayes, two nays. The motion passed. Councilmembers Pedlar and Cohen voted nay. There was a motion by Councilmember Cohen and seconded by Councilmember Pedlar to directing staff to prepare an ordinance amendment as recommended by the Planning Commission to allow a Council approved substitute for the 15' greenstrip requirement adjacent to public right -of -way. Councilmember Scott stated the timing is totally wrong. She explained the City paid a great deal of money for a consultant and now the Council is not listening to the consultant's advice. Councilmember Rosene stated he is not comfortable with ordinance amendments which take things out of the realm of being clear cut and put them in the realm of Council's opinion. He explained whenever Council takes things out of a strictly- written ordinance and puts it into Council's opinion, it is a dangerous area. Vote on the motion: three ayes, two nays. The motion passed. Mayor Paulson and Councilmember Scott voted nay. RECESS The Brooklyn Center City Council recessed at 9:40 p.m., and reconvened at 9:50 p.m. DISCUSSION ITEMS STAFF REPORT REGARDING ICE CONTROL PRACTICES The City Manager presented the staff report regarding ice control practices stating a suggestion was made during the Financial and Service Prioritization Process to move toward using straight salt for street ice control rather than the current 80 percent sand/20 percent salt mixture. 11/9/92 The Director of Public Works explained cities have recognized using the sand /salt mixture has a number of disadvantages including: sand provides traction, but does not assist in removing ice which is bonded to pavement; sand fills and blocks catch basins and storm sewers or remains on the streets, necessitating extensive cleanup of streets, sewers, and catch basins each spring; and sand collected during cleanup must be disposed of, and opportunities for disposal are becoming less available and more costly. The Director of Public Works further explained if this policy change is approved, street maintenance staff would use this winter, 1992 -93, as a test period. He also explained salt is considerably more expensive than sand, but much less salt is needed to provide effective ice control. Councilmember Scott asked the Director of Public Works to clarify the city would be using slightly more salt, but no sand. The Director of Public Works answered yes. The City Manager stated there is an increasing cost for disposal of the sand as it has an environmental impact and cannot just be disposed of in a landfill. Councilmember Rosene observed the sand is never completely cleaned up in the spring, and he would like to reduce the amount of sand on the streets. He asked if salt will damage boulevards as much as the sand does. The Director of Public Works said as much damage occurs to boulevards from heavy sand as from the salt accumulation. Councilmember Rosene asked if the City has a mitigation technique to use cattails in storm water ponds. The Director of Public Works replied yes. Councilmember Cohen explained his property has a county road on one side and a city road on the other, and the city side, on which sand was used, was worse than the county side, on which salt was used. There was a motion by Councilmember Rosene and seconded by Councilmember Pedlar to approve the proposed policy change to use salt for street ice control. The motion passed unanimously. STAFF REPORT REGARDING PUBLIC EDUCATION PROGRAM REGARDING ABATEMENT OF WATER POLLUTION The City Manager presented the staff report regarding a public education program regarding abatement of water pollution. He explained the Storm Drainage Utility annual budget includes $5,000 for public education programs; and at its July 27, 1992 meeting, the Council approved the concept of publishing education material regarding storm drainage and water pollution abatement, and the concept of a coloring contest. 11/9/92 -12- The Director of Public Works stated the coloring contest and picture will be published in the City's newsletter. He explained the total cost of the campaign including materials and prizes will total $670, and all costs will be charged to the Storm Drainage Utility. Councilmember Pedlar compared the coloring contest to the D.A.R.E. program and the Fire Prevention Program in that these programs are all targeted at children ages 5 to 8, and he believes targeting this age has contributed greatly to their success. There was a motion by Councilmember Pedlar and seconded by Councilmember Scott to approve the implementation of the coloring contest, and authorize the expenditure of funds for materials and prizes. Councilmember Rosene suggested staff consult first, second, and third grade teachers to simplify the wording, and to perhaps improve the sketch of "Stormie." The motion passed unanimously. STAFF REPORT RE: RATES AND POLICIES FOR PUBLIC UTILITIES The City Manager presented the staff report in regard to rates and policies for public utilities. Councilmember Pedlar asked if the Financial Commission has reviewed these proposed rates and policies. The City Manager answered yes. Diane Spector, Public Works Coordinator presented the issue of water restrictions. She explained it is recommended the Council approve a policy of automatic, annual water restrictions to encourage water conservation. The restrictions would be a ban on lawn and garden sprinkling during all hours of the day, on an odd -even basis from May 1 to September 30. Councilmember Cohen asked how well the old restriction between 3 to 8 p.m. worked. The Director of Public Works answered it worked well, but this restriction is only used in drought conditions. The odd -even system would help keep peak water demands within the water supply system's capacity, and would allow the postponement of construction of a two million gallon reservoir and pumping station. Councilmember Pedlar asked if residents will still be allowed to use their own wells, and if so, does this cause a problem with the aquifer. The City Manager answered yes, residents may use their own wells, and no it does not cause a problem with the aquifer as the private wells are at a different level than the City's. The Public Works Coordinator presented the issue of water shutoffs. She explained it is recommended the shut off and collections policy be as follows: 11/9/92 - 13- 1. Continue the policy of issuing red tags and shutting off water to residential and commercial customers who are resident at the property and who are in arrears. 2. Amend the current shut off procedure to provide for a public hearing prior to water shut off. 3. Certify as a special assessment all rental property utility accounts more than 60 days past due. 4. Certify as a special assessment all closing bills more than 30 days past due. 5. Certify special assessments for utility service accounts quarterly, rather than annually. Councilmember Scott agreed with the recommendations and specifically agreed with certifying special assessments for utility service accounts quarterly rather than annually. The Public Works Coordinator presented the issue of water connection surcharges. The Department of Health has begun billing water utilities a $5.21 per water connection surcharge to fund water testing by the federal Safe Drinking Water Act. She explained the Council has two options to consider in collecting the Water Connection Surcharge. The first option is to charge each customer the $5.21 yearly, regardless of consumption. The second option is to add the surcharge to the overall revenue requirements in determining future utility rates. Diane Spector stated staff recommendation is for Council to adopt the second option as it is fairer than option 1 and is consistent with treatment of other testing costs. Staff further recommended the water charge resulting from the surcharge be a separate line item and identified as a state- mandated charge. Councilmember Pedlar asked if senior citizens are generally lower water consumers. The City Manager answered ten years ago an extensive study of senior citizen consumption was completed, and they did use significantly less water. The Director of Public Works added the study was reviewed two years ago and the water consumption pattern for senior citizens remained the same. Councilmember Rosene emphasized if this surcharge is adopted, the City must heavily publicize the reason for the surcharge. The Director of Public Works explained notes will be sent to all residents. Councilmember Cohen agreed the public must be informed, and recommended also putting the notice right on the utility statement. The Public Works Coordinator presented the issue of water rates. She explained the Council annually reviews established rates for their adequacy and makes adjustments as necessary. She further stated it is recommended that permanent water conservation 11/9/92 -14- measures be implemented, starting in 1993; and also the water connection surcharge be included in the rates, rather than passed directly on to customers. Councilmember Rosene stated the rates have gone up due to capital improvements, and he asked if once the capital improvements are completed will the rates go down. The Public Works Coordinator answered it might be possible, in the future, to slow the rate of increase. The Public Works Coordinator presented the issue of water fees and charges. She stated staff has recommended two fee changes: to increase the water meter fee from $40 to $50; and to change the delinquent meter reading fee to $2 the first and second consecutive time, $5 the third time, and $10 the fourth time. The Public Works Coordinator presented the issue of sanitary sewer rates. She explained substantial outlays were made in 1991 and 1992 on four major projects including: construction of new lift station #2; replacement of sanitary mains under I94/694 and near the Brookdale Shopping Center; and the sanitary main improvements associated with the 69th Avenue street improvement project. Diane Spector stated staff has recommended the Council consider a rate increase which would be sufficient to support some portion of the capital improvement program. The Public Works Coordinator presented the issue of sanitary sewer fees and charges. She explained no increase is recommended on the fees and charges portion of the water utility rate schedule. The Public Works Coordinator presented the issue of storm drainage utility rates. She stated the City Council, on October 7, 1991, adopted Resolution 91 -246, which established storm drainage utility rates for 1992 and 1993, and the Council annually reviews established rates for their adequacy and makes adjustments as necessary. She further stated the Council has determined that a high priority improvement project is the 63rd/Halifax/Indiana Avenues area, and in order to accomplish this project and any other projects identified for 1993, it is necessary to increase the rates. The Public Works Coordinator presented the issue of water and sanitary sewer hookup rates. She explained the water hookup rates are adjusted annually to account for inflation, and for 1993 that increase will be 3.2 percent. Diane Spector, in summary, stated the overall rate increase will be 14.2 percent. She cautioned that the rates should be looked at in context of how they compare to other cities in the area, and overall Brooklyn Center is below average. There was a motion by Councilmember Pedlar and seconded by Councilmember Scott to approve the automatic odd -even sprinkling ban from May 1 to September 30 of each year. The motion passed unanimously. 11/9/92 - 15- I I There was a motion by Councilmember Scott and seconded by Councilmember Rosene to amend the water shutoff policy to clarify that shut off for delinquent bills applies only when the responsible person p p o currently resides or is in business at the property. The motion passed unanimously. i There was a motion by Councilmember Cohen and seconded by Councilmember Scott to approve including the water connection surcharge in the rates, and the surcharge be a separate line item and identified as a state - mandated charge on the utility bills. The motion passed unanimously. Councilmember Pedlar recommended the Financial Commission take a look at the proposed increase to the water rates from $0.64 to $0.73 per 1000 gallons. He was concerned the rates are consistently being increased. Councilmember Cohen stated the City needs to collect the money from the users. He further explained the user of the product should bear their fair share of the cost. Councilmember Pedlar stated there is no incentive for consumers to conserve water. He said the City must look at all financial options, and look at costs. Councilmember Pedlar expressed the need to do more with less funds. He asked if the overall increase will be 14.2 percent. The Public Works Coordinator answered yes. Councilmember Cohen reiterated the $5.21 increase is due to State mandate, and it is important the citizens be informed of this. He agreed the Financial Commission should take a look at the rates and policies for public utilities. The Director of Public Works explained the City is dealing with a $5.21 mandate on the water rate and also the newly imposed State sales tax. He also stated the Financial Commission has recommended interest earnings not be used to subsidize utility rates. Implementation of that policy results in rate increases. The Director of Public Works further explained during the prioritization process, the number of issues that were addressed within the public utility system did in fact reflect a reduction in cost. Councilmember Rosene stated the Council has been following the recommendations of the Financial Commission and staff, and if not for their ood work the rates might have been g g even higher. I There was a motion by Councilmember Cohen and seconded by Councilmember Rosene to increase the water rates from $0.64 to $0.73 per 1000 gallons. The motion passed: four ayes, one nay. Councilmember Pedlar voted nay. RESOLUTION NO. 92 -256 Member Jerry Pedlar introduced the following resolution and moved its adoption: 11/9/92 - 16- RESOLUTION ADOPTING THE WATER UTILITY RATE SCHEDULE The motion for the adoption of the foregoing resolution was duly seconded by member Dave Rosene, and the motion passed unanimously. There was a motion by Councilmember Rosene and seconded by Councilmember Cohen to increase the quarterly residential charge from $35.75 to $40.00. The motion passed: four ayes, one nay. Commissioner Pedlar voted nay. RESOLUTION NO. 92 -257 Member David Rosene introduced the following resolution and moved its adoption: RESOLUTION ADOPTING THE SANITARY SEWER UTILITY RATE SCHEDULE The motion for the adoption of the foregoing resolution was duly seconded by member Philip Cohen, and the motion passed unanimously. RESOLUTION NO. 92 -258 Member Philip Cohen introduced the following resolution and moved its adoption: RESOLUTION ADOPTING THE STORM DRAINAGE UTILITY RATE SCHEDULE The motion for the adoption of the foregoing resolution was duly seconded by member Dave Rosene, and the motion passed unanimously. RESOLUTION NO. 92 -259 Member Celia Scott introduced the following resolution and moved its adoption: RESOLUTION ESTABLISHING WATER AND SANITARY SEWER HOOKUP RATES FOR CALENDAR YEAR 1993 The motion for the adoption of the foregoing resolution was duly seconded by member Philip Cohen, and the motion passed unanimously. JOINT DISPATCHING VENTURE The City Manager presented the joint dispatching venture explaining this is a proposal to consolidate the City's public safety answering and dispatch operations for the cities of Brooklyn Center, Crystal, Golden Valley, New Hope and Robbinsdale. He further explained the joint facility is proposed to be built in Golden Valley by expanding the lower level of the current public safety facility there or in a separate existing building in Crystal. The City Manager also reviewed for Council the possible timetable for this project. Councilmember Pedlar expressed the need to look at both the dollars and the quality of service. He asked staff to provide Council with a financial pro forma and five -year projection. 11/9/92 -17- I RESOLUTION NO. 92 -260 Member Celia Scott introduced the following resolution and moved its adoption: RESOLUTION OF INTENT RELATING TO JOINT PUBLIC SAFETY DISPATCHING i The motion for the adoption of the foregoing resolution was duly seconded by member Jerry Pedlar, and the motion passed unanimously. Commissioner Cohen asked that a copy of Resolution No. 92 -260 be provided to the Governor. ADJOURNMENT There was a motion by Councilmember Scott, and seconded by Councilmember Rosene to adjourn the meeting. The motion passed unanimously. The Brooklyn Center City Council adjourned at 11:25 p.m. PoftrL L Ping. Deputy City Clerk Todd Paulson, Mayor Recorded and transcribed by: Nancy :Berg Northern Counties Secretarial Services 11/9/92 - 18 -