Approved Minutes 2-28-1996 SUMMARY MINUTES OF THE SAINT PAUL CITY COUNCIL
Wednesday, February 28, 1996 - 3:30 PM
PUBLIC HEARINGS AT 5:00 P.M.
CITY COUNCIL CHAMBERS, 3RD FLOOR
City Hall and Court House
15 West Kellogg Boulevard
The meeting was called to order at 3:40 p.m. by Council President Thune.
Present - 7 - Councilmembers Blakey, Bostrom, Guerin, Harris, Megard, Rettman, Thune
Absent - 0
CONSENT AGENDA
Councilmember Rettman requested Item #10 be removed for discussion.
Councilmember Thune requested Item #25 by withdrawn.
Councilmember Megard requested Item #30 be removed for discussion.
Councilmember Megard moved approval of the Consent Agenda as amended
Yeas - 7 Nays - 0
The meeting was recessed and the Housing and Redevelopment Authority meeting was called to
order for consideration of the Consent Agenda. Present - 7 Absent - 0
The HRA meeting was recessed and the City Council meeting resumed.
FOR ACTION
1. Approval of minutes of October 25, 1995, and February 14, 1996.
Laid over to March 6 Yeas - 7 Nays - 0
2. Claims of Joanne Combs, Yonova Eason, Douglas Hurd, and Patricia Meyer.
Referred to the City Attorney's Office
3. Summons and Complaint in the matter of Iris J. Lewis vs. the City of St. Paul, et al.
Referred to the City Attorney's Office
February 28, 1996 City Council Summary Minutes Page 2
4. Letter from the Office of the City Attorney announcing a public hearing before the City
Council on March 6, 1996, to consider adverse action against licenses held by Bradley
Brooks, dba Front Avenue Superette, 859 Front Avenue. (Uncontested)
5. Administrative Orders:
D00845 Providing contractor an extension of time for the Davern Outlet Phase "A"
project.
D00846 Amending the 1995 budget in the Department of Planning and Economic
Development to reflect proper amounts at the major object level.
D00847 Addition of$482 to the contract for improvements to the Saint Paul Civic
Center Expansion, CP-2B-Elevator, #10.
Noted as on file in the City Clerk's Office
6. Resolution - 96-160 - Approving the appointment of Kim Hunter, by Mayor Coleman, to
the Bicycle Advisory Board as a Council Ward 4 Representative. (Laid over from
February 21)
Adopted Yeas - 7 Nays - 0
7. Resolution - 96-183 - Approving the appointments of Nicole Otto, Kenneth Lawrence and
Steven Sarrazin, by Mayor Coleman, to the Advisory Committee on Aging. (To be laid
over one week for adoption)
Laid over to March 6 for adoption
8. Resolution - 96-184 - Approving the reappointment of Karen Muller, by Mayor Coleman,
to the Family Housing Fund of Minneapolis and Saint Paul. (To be laid over one week for
adoption)
Laid over to March 6 for adoption
9. Resolution - 96-185 - Approving the appointments of Theron Barnes and Richard
Schoenthaler, by Mayor Coleman, to the Workforce Development Council as Private
Sector Representatives. (To be laid over one week for adoption)
Laid over to March 6 for adoption
10. (Discussed later in the meeting)
11. Resolution - 96-186 - Approving the 1995 Agreement between the Independent School
District No. 625 and the School Service Employees Local Union No. 284 S.E.I.U., AFL-
CIO representing Cook Managers. (To be laid over one week for adoption)
Laid over to March 6 for adoption
February 28, 1996 City Council Summary Minutes Page 3
12. Resolution - 96-187 - Approving the 1995 and 1996 wages and benefits for the City's non-
represented administrative and legislative employees. (To be laid over one week for
adoption)
Laid over to March 6 for adoption
13. Resolution - 96-188 - Establishing the rate of pay for the unclassified Special Events
Coordinator position located in the Office of Parks and Recreation in Grade 12 of the Non-
Represented City Managers Salary Schedule. (To be laid over one week for adoption)
Laid over to March 6 for adoption
14. Resolution - 96-189 - Establishing the rate of pay for the unclassified Administrative
Assistant position located in the Office of Public Health in Grade 16 of the Non-
Represented City Managers Salary Schedule. (To be laid over one week for adoption)
Laid over to March 6 for adoption
15. Resolution - 96-190 - Establishing the rate of pay for the new class entitled Police
Research and Grants Manager in Grade 26 of the Saint Paul Supervisors Organization and
approving minimum qualifications for the new class as required by Civil Service Rule 32.
(To be laid over one week for adoption)
Laid over to March 6 for adoption
16. Resolution - 96-191 - Approving settlement of claim of Bank St. Croix against the City of
Saint Paul in the amount of$5,100.
Adopted Yeas - 7 Nays - 0
17. Resolution - 96-192 - Accepting a grant in the amount of $92,082 from the State of
Minnesota, Office of Drug Policy and Violence Prevention, for the Saint Paul Police
Department's ACOP Program.
Adopted Yeas - 7 Nays - 0
18. Resolution - 96-193 - Accepting the gift of a life-size statute of F. Scott Fitzgerald from
the Saint Paul Foundation to recognize and publicly celebrate the author's 100th birthday
by placement in a public park.
Adopted Yeas - 7 Nays - 0
19. Resolution - 96-194 - Canceling registered bill issued to William Jorke, 1855 Portland
Avenue, in the amount $1,465 for a lead service connection replacement.
Adopted Yeas - 7 Nays - 0
20. Resolution - 96-195 - Canceling registered bill issued to the City of Roseville in the
amount of$8,100.44 for over billed water usage for the month of October, 1995.
Adopted Yeas - 7 Nays - 0
February 28, 1996 City Council Summary Minutes Page 4
21. Resolution - 96-196 - Canceling registered bill issued to the State of Minnesota in the
amount of $1,867.74 for the State citing the Saint Paul Water Utility for a portion of the
project.
Adopted Yeas - 7 Nays - 0
22. Resolution - 96-197 - Canceling registered bill issued to Thorne Properties, 1416 Carroll
Avenue, in the amount of$3,375 for a lead service connection replacement.
Adopted Yeas - 7 Nays - 0
23. Resolution - 96-198 - Amending Council File 95-461 to correct the length of terms from
three years to one year for Robert Morgan, John Loban, and Mike Zipko to the Cable
Access St. Paul, Inc. Board of Directors now called St. Paul Neighborhood Network.
Adopted Yeas - 7 Nays - 0
24. Resolution - 96-199 - Approving the issuance of multi-family rental housing development
refunding revenue bonds (Burlington Apartments Project)
Adopted Yeas - 7 Nays - 0
25. Resolution - 96-200 - Suspending Pawnbroker's License held by Daryl Shiber, dba
National Pawnbrokers, Inc, for delinquent taxes owed to the State of Minnesota.
Withdrawn
26. Resolution - 96-201 - Suspending Restaurant B License held by Bookie Read, dba On the
Way Cafe, 340 Wabasha Street North, for delinquent taxes owed to the State of
Minnesota.
Adopted Yeas - 7 Nays - 0
27. Resolution - 96-202 - Suspending Liquor On Sale, Sunday On Sale, Entertainment Class B,
Off Sale Malt, Restaurant B and Gambling Loc. C Licenses held by PLAB, Inc., dba
Ted's Rec, 1084 Larpenteur Avenue West, for delinquent taxes owed to the State of
Minnesota.
Adopted Yeas - 7 Nays - 0
28. Resolution - 96-203 - Authorizing the proper City officials to execute a contract with
Children's Health Care-Saint Paul for the provision of specialized medical services.
Adopted Yeas - 7 Nays - 0
29. Resolution - 96-204 - Authorizing the proper City officials to execute a contract with
Ramsey Clinic for the provision of specialized medical services.
Adopted Yeas - 7 Nays - 0
30 (Discussed later in the meeting)
February 28, 1996 City Council Summary Minutes Page 5
31. Resolution - 96-206 - Authorizing the Division of Parks and Recreation to undertake 1996
Pest Control Program on City park properties and post notification of same.
Adopted Yeas - 7 Nays - 0
32. Resolution - 96-207 - Approving conveyance of property to the City for the reconstruction
of the Wabasha Street Bridge.
Adopted Yeas - 7 Nays - 0
33. Resolution Approving Assessment - 96-208 - In the matter of the assessment of benefits,
cost and expenses for boardings-up of vacant buildings for November, 1995 (J96041B) and
December, 1995 (J96042B) and demolition of vacant buildings for January, 1996 (J9604C)
and setting date of public hearing for April 24, 1996.
Adopted Yeas - 7 Nays - 0
34. Preliminary Order - 96-209 - Condemning and acquiring forty seven vacant parcels for
open space and bluff preservation in the Battle Creek Park Area, and setting date of public
hearing for April 24, 1995. (File #18817)
Adopted Yeas - 7 Nays - 0
10. Resolution - 96-161 - Approving the 1994-1996 Collective Bargaining Agreement between
the City of Saint Paul and the International Association of Fire Fighters, AFL-CIO Local
21 and a Letter of Understanding. (Laid over from February 21)
Councilmember Bostrom moved approval.
Adopted Yeas - 6 Nays - 0 Abstention - 1 (Guerin)
(Blakey and Guerin left the meeting)
30. Resolution - 96-205 - Amending the 1996 budget to provide technical and professional
services for the Sales Tax Revitalization (STAR) Program for required loan services,
accounting, and program data collection.
Amy Filice, Department of Planning and Economic Development, explained the reason a
Request for Proposal (RFP) was sent and the reason for wanting one servicing agency was
because they are trying to provide an overview at all times of where all the monies in the
STAR program are; what has been spent, where its been spent, and to collect the loan
repayments from both the revolving loan operators and for loans to the City. PED will be
keeping demographic data on all loans and grants made through the STAR program in
order to better see what areas of the City are being served, who's being served, size of
household, what kind of businesses, and what type of jobs are created. It was felt if that
data could be collected in conjunction with doing the general accounting services that are
needed, they would be able to modify the program at any time, have the data to know how
February 28, 1996 City Council Summary Minutes Page 6
they were doing, know where they are going, be able to answer questions for the Council
and be able to make suggestions for modifications to the program, if necessary, or the
Council could see if there were needs for that.
The recording function is particularly important. Reports will be provided on a monthly
basis. Each of the organizations that have received STAR funds will also receive reports
that will tell them where they are in the allocation.
(Blakey and Guerin returned)
Councilmember Megard said she is very supportive of the RFP and said she is interested in
the breakdown of the payment. She noted that the proposal us to use HRA general fund
monies. Forty thousand dollars ($40,000) will come from general fund contingency
reserve and $20,000 from innovation money. She said she was most concerned with using
HRA general fund money without approval of the HRA Board and said she would like to
have a discussion at an HRA meeting saying she felt it was necessary to discuss whether or
not HRA funds should be used for the STAR grant since the HRA is not involved with the
STAR program.
Councilmember Megard moved for a two-week layover.
Councilmember Rettman concurred that this was not on the HRA agenda to be a budget
amendment. In discussions with PED staff, it was felt that the most appropriate way of
handling this would be to have a discussion first before the Council and then in two weeks
have it on an HRA agenda. She expressed concern with the amount of general funds being
used and asked what is a legitimate use. Part of the STAR dollars are also being used for a
servicing cost that is basically paying for either PED or HRA staff. She felt it seemed
appropriate to identify some dollars to go into this in terms of the processing. She wanted
to look at what the best mix of dollars would be and the HRA seemed to be logical. The
HRA general fund and the contingency general fund have not been identified to meet a
certain requirement for expenditures.
Ms. Filice responded this is an issue the Council has requested be looked at when the
guidelines are passed in January; the overall administrative funds or the funds necessary to
get the projects in the neighborhoods both by the neighborhood groups and by PED staff.
PED Director Larry Buegler has said at this time the costs are being absorbed in the
general PED budget because none of the STAR funds can be used for administration. A
series of discussions are being set up with the coalition and neighborhood groups to discuss
this. They would like to look at ways they can make the use of STAR funds by
neighborhood groups a self-sustaining activity and look at ways they can use the adminis-
tration of STAR dollars in-house also a self sustaining activity.
February 28, 1996 City Council Summary Minutes Page 7
There are a many different sources to look at and legal opinions to obtain but in the
meantime there are projects which need to be accountable for, need to be getting the
money out, and need to be getting the loan payments back.
Councilmember Rettman pointed out that things that have been identified as part of the
scoping is to identify some of the criteria that has been wanted; i.e, is the STAR program
reaching people they wanted it to reach?; is it making a return on the dollar?; what type of
wages, etc. Those questions will be included and if the discussions are going to proceed,
she suggested moving forward with the resolution in order to avoid delays
Ms. Filice responded that Norwest is beginning the process but there has to be a contract
and the fund source has to be identified before they can do the bulk of their work.
It was decided not to use STAR money for these types of costs, Councilmember Harris
said. This was a decision made to insure that as much of the money as possible would
actually go to the projects. This is a one-time budget amendment and he felt a discussion
was necessary to proactively identify in the next budget how it will be financed. The
longer the waiting period, the more harm there will be for the community groups who have
applied and been approved for the dollars. There is a time issue: the program needs to
move forward, and it is necessary to make sure the money is doing what it is intended for.
If it is necessary to look again at how it gets allocated in the next budget cycle, then the
commitment is there, Harris said. He questioned what alternatives there are without
opening up the entire STAR process and taking the necessary dollars out of that pot to pay
for these services.
HRA money is being used, Councilmember Megard reiterated, and this is not an HRA
program. The STAR loans will generate funds back to PED; they will not go back to
HRA. HRA has a fund balance of one-half million dollars and the general fund has a
much larger fund balance. Also, $200,00 of contingency was set aside. She indicated she
would be more comfortable if an arrangement was made so this money is paid back to the
funds from which it is being taken through the generation of loans and interest to those
people who are getting the STAR funds.
Ms. Filice clarified that Minnesota State Statute prohibits using sales tax proceeds for
administrative costs. They will be seeking a legal opinion on the use of the interest on the
loan payments coming back to see if there is room to pay for some of the additional costs.
Councilmember Guerin stated that the money for administrative costs must come from
somewhere. Although HRA may not be the most appropriate fund, it is for economic
development and there is money in the general fund but not in the PED fund.
February 28, 1996 City Council Summary Minutes Page 8
Vote on Councilmember Megard's motion to layover.
Failed Yeas - 1 Nays - 6 (Blakey, Bostrom, Guerin, Harris, Rettman, Thune)
Councilmember Guerin moved approval.
Adopted Yeas - 6 Nays - 1 (Megard)
Councilmember Rettman requested that Ms. Filice send the monthly reports to the Council-
members as they come in.
Councilmember Harris noted administrative orders for the HRA budget do not come before
the board. He requested that John McCormick, Assistant City Attorney, draft the
necessary legislation stating if there is money that is transferred in the HRA budget, it will
require approval of the HRA Board. It was agreed to have further discussion at an HRA
meeting.
FOR DISCUSSION
35. Resolution - 95-1392 - Initiating a Performance Audit Program for all City departments
and offices. (Amended and laid over from February 7)
Councilmember Megard moved approval.
Councilmember Rettman said it was her understanding there would be amendments made
to this resolution in terms of any good performance audit will create the parameters and
everyone will be fully aware of what will and will not be done, and this resolution would
not predetermine that they would go forward until the parameters are created.
Councilmember Megard pointed out the last sentence states that a complete audit
performance plan will be presented to the City Council by June 15, 1996. She felt this
covered discussions in the session that was held and agreement was reached on the cited
amendment. It was agreed in principle that it will be a collaborative effort with the
administration to bring the plan forward.
Councilmember Harris asked if Gerry Strathman will provide an update before it comes
back as a plan.
Councilmember Megard replied that an update could be provided at an Organizational
meeting but Council is basically working off the resolution to put a plan together to come
to the City Council by June 15. However, it can be updated as they go along, she stated.
Performance audits can be very good if they have an end result and they are "precision in
their flight plan," Rettman stated. That is, if they are clearly identifying what the Council
February 28, 1996 City Council Summary Minutes Page 9
is hoping to achieve rather than be open-ended. Her concern with the open-ended
resolution is that it does not identify what type of performance audit they are talking about.
Everyone must have a clear understanding of what they want to do, why it is being done, it
is not to find fault but to achieve a workable solution. She did not feel there was
unanimous agreement by everyone. She said she was concerned that by time they get to
June 15, there could be a plan that may not address the issues with the Administration.
Councilmember Guerin said Council would still have an opportunity to reject or approve
the plan if it does not have the collaboration everyone is seeking.
Councilmember Bostrom said he does not feel the Council has enough background on
exactly what they want to do. He noted that discussions included whether or not the
Council would talk about a part of a department that had been identified or if an entire
department will be audited. He did not feel those issues have been worked out to the point
where he is ready to proceed. It needs more work in defining what product the Council is
looking for before it is actually done, Bostrom stated.
Councilmember Harris requested that Gerry Strathman provide an update at the next
Organizational meeting.
Adopted Yeas - 5 Nays - 2 (Bostrom, Rettman)
36. Resolution - 95-1516 - Supporting State legislation establishing a system of checks and
balances in the governance of the HRA between the Commissioners of the HRA and the
Mayor. (Laid over from February 7)
Withdrawn by the author, Councilmember Guerin.
37. Final Order - 96-141 - In the matter of improving and widening Dale Street North,
University to Minnehaha and St. Anthony to Central. (Laid over from February 14)
Councilmember Blakey moved to layover one week.
Laid over to March 6 Yeas - 7 Nays - 0
38. Administrative Order:
D00842 Amending the 1995 budget in the Division of Public Health to reflect proper
spending authority. (Laid over from February 21)
Councilmember Rettman moved to layover one week.
Laid over to March 6 Yeas - 7 Nays - 0
February 28, 1996 City Council Summary Minutes Page 10
39. Resolution - 96-210 - Accepting report, including recommendations, from the Department
of Finance and Management Services regarding the 1996 bond sale.
Martha Larsen, Director, Finance Department, explained there will be four series to the
bond issuance: Series A is $14.5 million for capital improvements which includes $2
million for the Wabasha Street Bridge. The debt service for the bridge portion represents a
commitment of district heating franchise fees. That annual amount will range from
$170,000 to $380,000 per year. Currently the City receives approximately $60,000 per
month in District Heating franchise fees. An additional $3 million will be issued in capital
improvement bonds this summer which is related to the City's commitment for the Science
Museum.
Series B is $2,220,000 for street improvement special assessment funds. This is year one
of the 15-year street repaving program. It includes funding for repaving, parkway
amenities, lights, etc. The bonds will be paid from special assessments. The principle and
interest repayment for this series of bonds is structured to roughly match the assessment
cash flows. Typically, about 20% of the special assessments are collected in prepayments,
The City will have the opportunity to pay off this series or refinance it in 12 years.
Series C is $6,750,000 is Street Improvement Refunding Bonds and a full net advance
refunding of a variety of bond series for 1985 through 1995. The purpose of the advance
refunding is to reduce overall interest expense. It is expected a net effective interest rate of
4.54% will be achieved as compared to the outstanding rates of 6.02% up to 8.2%. This
should help to achieve a savings of approximately $1.6 million. The refunding includes a
cash contribution of about $2.1 million which represents interest earnings and prepayments
received to date. That cash contribution will be used to pay down principle. In
conjunction with the advance refunding, another $1.5 million cash has been used to pay off
the 1993 temporary street improvement bonds which was consistent with the original intent
of the temporary bonds to have flexibility at this point in terms of either refinancing or
paying those off. Another $2 million in cash on hand is still left. This series of bonds will
be repaid with the special assessment revenue streams from the old issues as well as from
the 1993 issue. A net levy requirement associated with this series is projected in the years
1998 through 2006. This will vary between $90,000 and $115,000 per year. It will be
lower under the advanced refunding than it would have been if this series of bonds had not
been refunded
Series D is $9.1 million to advance refund water pollution abatement bonds from 1975 and
1987. The purpose of the advance refunding is to lower the overall interest expense. A
net effective interest rate of 4.16% is expected versus the 6.25% and 5.83% that is out-
standing on the current series. That would produce a savings of approximately $500,000
and a net present value of $428,000. This series will be repaid from the existing sewer
revenue collections.
February 28, 1996 City Council Summary Minutes Page 11
Ms. Larsen noted that of all four series, only $12.5 million of the capital improvement
bonds will be paid from property taxes
Councilmember Rettman moved approval.
Adopted Yeas - 7 Nays - 0
ORDINANCES
40. Final Adoption - 95-1338 - An ordinance to repeal Chapter 326 of the Saint Paul
Legislative Code relating to licensing building contractors effective March 31, 1996.
(Substitute introduced February 14) (Laid over from February 21)
Councilmember Rettman moved for a one week layover in order to review additional
material received prior to the meeting.
Laid over to March 6 Yeas - 7 Nays - 0
41. Second Reading - 96-168 - Finalizing City Council action taken January 24, 1996,
approving a petition of Multi-Clean Inc., (Pet Food Warehouse) to rezone property from
P-1 and I-1 to B-2 at 2277 Ford Parkway.
Laid over to March 6 for third reading/public hearing
The meeting was recessed at 4:35 and resumed 5:05 p.m.
Present - 4 - Blakey, Bostrom, Harris, Thune
Absent - 3 - Guerin, Megard (both arrived shortly after roll call), Rettman
PUBLIC HEARINGS
42. Third Reading - 96-151 - Establishing the position entitled Administrative Assistant as
specified by Chapter 12 of the Charter of the City of Saint Paul, Section 12.03.2(H)
thereof.
Laid over to March 6 for final adoption
43. Third Reading - 96-152 - Establishing the position entitled Special Events Coordinator as
specified by Chapter 12 of the Charter of the City of Saint Paul, Section 12.03.2(H)
thereof.
Jerry Serfling, Business Representative for AFSCME clerical and technical employees,
appeared before the Council to address Items #42 and 43, the creation of two additional
political appointments. He also noted that Item #15 on the consent agenda pertaining to the
position of Research and Grants Manager in the Police Department is a position held by a
campaign worker from the Mayor's Office. It is a position that has special and unique
February 28, 1996 City Council Summary Minutes Page 12
minimum qualifications which no one else in the City will qualify for and, therefore, will
not be able to compete for this Civil Service classified position.
Mr. Serfling cited City employees who have either been laid off or had their salary
reduced.
Last fall an agreement was reached regarding these positions that there would be a process
used to determine the appropriate classification. If there was disagreement, the union and
the administration would present their case to the City Council for a decision. He noted all
relevant material related to this issue was included in the Council packets.
Mr. Serfling said this was an opportunity for the City Council to reverse the messages that
have been constant and directed at City employees for the past 26 months. The theme of
those messages has been that career City employees are unimportant and are not valued.
He said they are currently seeing a revival of the spoil system that civil service was
intended to eliminate.
He further pointed out the Council received a proposal for wage and benefit improvements
that enables non-represented City employees to receive payment twice for health insurance.
He asked that the City begin to treat the career civil service employees with dignity and
respect. AFSCME has actively been addressing the issue of placing campaign workers in
provisional jobs for more than 18 months, Serfling said. AFSCME members have been
denied access to these jobs.
Mr. Serfling also noted that the position in the Police Department and the position in Parks
and Recreation began in PED and were moved out when PED downsized.
(Councilmember Rettman arrived)
Mr. Serfling asked the Council to consider what the limits are that are imposed on the City
by the Charter, Civil Service Rules, and collective bargaining agreements.
Mike Windey, Business Representative for the Professional Employees Association (PEA),
stated that the titles in question are represented by PEA and are in this collective
bargaining agreement. This is cause for concern in several bargaining units not only in
this instance but in those that might follow. The City has civil service testing rules that are
available for these appointments and these positions should be open to all qualified
employees and should be done so in accordance with the merit system. He expressed
concern for those employees who have been laid off or had pay cuts. He asked the
Council to look at the civil service rules and the merit system and do what is necessary to
maintain the integrity of the system. This is not a personal issue; it is about maintaining
the integrity of the system that allows all qualified employees to test for these positions, he
February 28, 1996 City Council Summary Minutes Page 13
said. On many occasions, PEA has run into the problem of having career paths cut for its
members.
John Shockley, Office of Human Resources, stated these unclassified positions are being
created in accordance with the City Charter. It is the legal method of establishing such
positions. Recommendations were made by Human Resources based upon studying certain
provisional positions; one in the Division of Public Health which is carrying out initiatives
that were put forth by the City Council which was the reason for the recommendation of
placing it in the unclassified service.
With regard to the Special Events Coordinator, this was a provisional position and was not
performing the duties that were described in the classification of Administrative Assistant-
City Planning which was the initial civil service provisional position. A determination was
made that a new classification should be established in the unclassified service. This
position is performing duties that are promoting and marketing the City through special
events. He further explained that the position is in the Division Parks and Recreation
office for logistical reasons. Most events are on parks properties and using recreational
facilities. The position is carrying out an initiative of the executive branch in promoting
the City through special events coordination. The person is also acting as the Mayor's
advance person for special events. Therefore, it was determined it would be reasonable
that this position be appointed and in the unclassified service.
John Hamilton, Director of Human Resources, stated that ten years ago there were 138
provisional appointments, at this time there are 21. When Mayor Coleman took office
there were 38, and he has consistently worked to reduce those numbers.
Councilmember Harris requested that Mr. Hamilton provide a list of past and current
positions; where reductions have been made; the names of people in those positions; the
names and titles of everyone who has been hired since January 1, 1994; if these people are
appointed and if some of their primary functions are to serve the mayor, and why they are
showing up in budgets other than the Mayor's.
Councilmember Megard requested information as to how special events coordinators were
hired in the past and why they left with the administration. Also, the number of people
who have applied for the environmental health position.
President Thune questioned why these positions are not in the Mayor's Office and asked
for a list of people laid off and those who had a reduction in salary.
Councilmember Blakey moved to close the public hearing. Yeas - 7 Nays - 0
Laid over to March 6 for final adoption
February 28, 1996 City Council Summary Minutes Page 14
44. Resolution - 96-177 - Vacating part of Sixth Street between Summit Avenue and Mulberry
Street allowing petitioner to improve access to a parking lot which serves the tenants of an
apartment building. (Laid over from February 21)
No one appeared in opposition; Councilmember Harris moved approval
Adopted Yeas - 7 Nays - 0
45. Final Order - 96-178 - In the matter of construction and/or reconstruction of sidewalks at
800 Blair Avenue, 794 Dayton Avenue, 175 North Victoria Street, 775 Jefferson Avenue,
1382 Bayard Avenue, 1818 and 2017 Bohland Avenue, 1703 Rome Avenue, 1880, 1886
and 1890 Yorkshire Avenue, 1514 Englewood Avenue and 1095 Desoto Street. (File
#S95109) (Laid over from February 21)
No one appeared in opposition; Councilmember Blakey moved approval
Adopted Yeas - 7 Nays - 0
46. Resolution Ratifying and Confirming Condemnation - 96-179 - In the matter of
condemning and acquiring permanent right-of-way easement and temporary construction
easements in connection with construction of the new Wabasha Street Bridge and the new
Navy (Raspberry) Island Bridge. (File #18794E) (Amended January 17) (Laid over from
February 21)
Peter White, Real Estate Division, presented an amendment to eliminate part of the legal
description for property which was not needed.
Councilmember Guerin moved to introduce the amendment. Yeas - 7 Nays - 0
No one appeared in opposition; Councilmember Bostrom moved approval as amended.
Yeas - 7 Nays - 0
47. Resolution Ratifying and Confirming Condemnation - 96-211 - Ratifying condemnation
and awarding the damages for a permanent bridge easement taken as part of the
construction of the Wabasha Street Bridge. (File #18794E)
Peter White, Real Estate Division, presented an amendment.
Councilmember Guerin moved to introduce the amendment. Yeas - 7 Nays - 0
No one appeared in opposition; Councilmember Bostrom moved approval.
Adopted Yeas - 7 Nays - 0
February 28, 1996 City Council Summary Minutes Page 15
48. Resolution - 96-212 - Approving application for a new Gambling Manager's License by
Patrick Leahy, dba Children's Program of Northern Ireland at Smokey's, 499 Payne
Avenue. (ID #58288)
No one appeared in opposition; Councilmember Bostrom moved approval.
Adopted Yeas - 7 Nays - 0
49. Resolution - 96-213 - Approving application for a new State Class B Gambling Premise
Permit by Joe Reid, on behalf of Children's Program of Northern Ireland, at Smokey's,
499 Payne Avenue. (ID #04567)
No one appeared in opposition; Councilmember Bostrom moved approval.
Adopted Yeas - 7 Nays - 0
50. Resolution - 96-214 - Approving the decision of the Legislative Hearing Officer on
Property Code Enforcement Appeals for property located at 400 Whitall Street.
No one appeared in opposition; Councilmember Rettman moved approval.
Adopted Yeas - 7 Nays - 0
51. Resolution - 96-156 - Ordering the owner to remove or repair the building at 1371 Van
Buren Avenue within fifteen (15) days from adoption of resolution. (Legislative Hearing
Officer recommends approval) (Laid over from February 14)
Gerry Strathman, Legislative Hearing Officer, reported that subsequent to the Legislative
Hearing, the property owner posted the $2,000 bond and obtained a permit to begin
rehabilitating the property. There was a great deal of public testimony by neighbors in
favor of having the building removed, but because of the late actions of the property owner
Council agreed to lay the resolution over two weeks. A Public Health staff person visited
the property on this date and saw no evidence of work taking place on the property.
Councilmember Megard said she felt enough time has been allowed for the owner to repair
the building and moved to approve the resolution.
No one appeared in opposition; Councilmember Megard moved approval.
Adopted Yeas - 7 Nays - 0
52. Resolution - 96-157 - Ordering the owner to remove or repair the building at 441 View
Street within fifteen (15) days from adoption of resolution. (Legislative Hearing Officer
recommends approval) (Laid over from February 14)
(Harris left and returned)
February 28, 1996 City Council Summary Minutes Page 16
Gerry Strathman reminded the Council that the current owner had just recently taken
possession of the property from HUD and indicated at the February 14 meeting that he was
actively rehabilitating the property. Information is available showing the property is being
rehabilitated and Mr. Strathman recommended allowing additional time for completion of
the work.
Mike Rice, property owner, appeared and confirmed what Mr. Strathman stated.
No one appeared in opposition; Councilmember Megard moved to lay over eight weeks
Laid over to April 24 Yeas - 7 Nays - 0
53. Appeal of Dick Nowlin to a Summary Abatement Order for property at 762 Capitol
Heights. (Legislative Hearing Officer recommends granting the appeal to April 30, 1996,
on the condition that all open storage be removed from the garage by February 20, 1996,
and that the integrity of the structure is maintained) (Laid over from February 14)
Gerry Strathman reported the open storage in the garage has not been removed and,
therefore, recommended proceeding with the abatement.
No one appeared in opposition; Councilmember Blakey moved to deny the appeal with a
five day abatement order.
Appeal denied - abatement order within 5 days Yeas - 7 Nays - 0
54. Resolution - 96-215 - Ordering the owner to remove or repair the building located at 292-
294 Aurora Avenue within fifteen (15) days from adoption of resolution. (Legislative
Hearing Officer recommends approval)
No one appeared in opposition; Councilmember Blakey moved approval.
Adopted Yeas - 7 Nays - 0
55. Resolution - 96-216 - Ordering the owner to remove or repair the building located at 527
Bidwell Street within five (5) days from adoption of resolution. (Legislative Hearing
Officer recommends approval)
No one appeared in opposition; Councilmember Rettman moved approval.
Adopted Yeas - 7 Nays - 0
56. Resolution - 96-217 - Ordering the owner to remove or repair the building located at 883
Third Street East within fifteen (15) days from adoption of resolution. (Legislative
Hearing Officer recommends approval)
No one appeared in opposition; Councilmember Guerin moved approval.
Adopted Yeas - 7 Nays - 0
February 28, 1996 City Council Summary Minutes Page 17
57. Resolution - 96-218 - Ordering the owner to remove or repair the building located at 894
York Avenue within fifteen (15) days from adoption of resolution. (Legislative Hearing
Officer recommends the owner be granted six months to repair the building if a code
compliance inspection is completed, a $2,000 bond is posted and the vacant building fee is
paid by February 28, 1996).
Gerry Strathman stated that none of the conditions that were established have been met
and, therefore, he changed his recommendation to approve the original order.
No one appeared in opposition; Councilmember Bostrom moved approval.
Adopted Yeas - 7 Nays - 0
58. Public hearing to consider the appeal of Amin Lotfalla to a decision of the Board of Zoning
denying a variance of the minimum lot size and width requirements in order to continue the
use of the property as a duplex at 489 View Street.
Councilmember Rettman stated that based on information provided and the fact that the
appellant did not appear at the meeting, she suggested the appeal be denied.
John McCormick, Assistant City Attorney, stated that the allegation filed by the appellant
is that an error occurred. He advised that Council must find error in order to reverse the
findings of the Board of Zoning Appeals. Council could affirm, reverse, or modify and
any decision made must be supported by evidence on the record.
Councilmember Guerin moved to deny the appeal.
Motion of intent - appeal denied Yeas - 7 Nays - 0
59. Public hearing to consider the application of Steve Scribner to rezone property from B-3
(general business) to R-4 (residential single family) to allow an existing commercially used
property to be used as a single family dwelling at 1374 Arcade Street.
Kady Dadlez, Department of Planning and Economic Development, stated that the
applicant has been using this property as a business for the past five years. The business
has now outgrown the space. The property owner has tried unsuccessfully for
approximately one year to sell it for a business purpose. He has an interested residential
buyer and, therefore, is requesting to rezone the property to residential. Approval was
recommended by both staff and the Planning Commission.
Steve Scribner, property owner, appeared and concurred with Ms. Dadlez's statement. He
also added that District 5 has given their approval to the rezoning.
Councilmember Bostrom moved to close the public hearing. Yeas 7 Nays - 0
February 28, 1996 City Council Summary Minutes Page 18
A short discussion ensued and Councilmember Bostrom moved to approve the application.
Application granted Yeas - 7 Nays - 0
(Councilmember Guerin was excused from the meeting at this time)
60. Public hearing to consider the report of the Administrative Law Judge concerning adverse
action against license application by Don Nguyen and Duon Dai Phan's Cafe, dba Cafe
Karaoke Do Thanh, 1275 University Avenue.
(Thune and Rettman left the meeting)
Phil Miller, Assistant City Attorney representing the Office of License, Inspections, and
Environmental Protection, provided information on previous times this issue was before
the City Council and noted on November 15, 1995, it was referred for a hearing before an
Administrative Law Judge. On November 16, Mr. Phan submitted an amended application
which deleted Don Nguyen, the co-applicant, from the application. This matter was heard
by an Administrative Law Judge on January 18, 1996. The ALJ recommended the City
Council grant the license with conditions. The two main issues before the Council, Mr.
Miller stated, were which application should be considered, and considering the ALJ's
recommendations, whether the Council should grant or deny the cabaret license to the
applicant.
In the written exceptions filed by LIEP, it was suggested that Council act upon the original
application. Mr. Miller said it would set a dangerous precedent if the Council were to act
upon the amended application submitted after the matter had already been referred to an
ALJ. Mr. Miller reviewed, at length, the allegations and written exceptions presented by
the LIEP Office. The Office of LIEP requested the Council reject the amendment to the
application in order to stay within the present guidelines and avoid possible future actions
which would be based upon arbitrary and capricious claims and also that the application be
denied based on the preponderance of the evidence. Mr. Miller said it is felt that the
Office of LIEP has clearly shown that the manner in which the owners have operated
would endanger the public health, safety and welfare if they were granted a license.
(Councilmember Rettman returned and was excused from the meeting at this time)
John McCormick, Assistant City Attorney, presented ground rules for the Council to
follow, stating the All heard testimony and made recommendations. The Council's
decision must be based upon the facts in the entire record. Mr. McCormick advised that
the Council may reject, accept, adopt or modify the ALJ results. Council could determine
if there were error in facts based on the exceptions filed by Attorney Miller, or they could
adopt the ALJ's findings either in whole or in part. If the Council determines there is
error in some of the facts in the case, it could be decided that the record as a whole
supports the ALJ's final recommendations. The Council's decision was to be based on
February 28, 1996 City Council Summary Minutes Page 19
reasonable inferences from testimony presented on the record and the arguments of
Council at this meeting. He advised that no additional testimony was to be received other
than from the applicant, his attorneys and the LIEP attorney.
(Councilmember Megard left and returned)
James Easterly, attorney for the applicant, provided copies of the applicant's reply to the
proposed exceptions to the ALJ's recommendations. He noted that the All heard
testimony from six witnesses, including the neighborhood block president, two St. Paul
police officers, and a representative of the Los Angeles Police Department, examined
police logs and reports and concluded the license should be granted but allowed that certain
reasonable conditions might be imposed on the operation of the business.
Mr. Easterly said if the Council chooses to ignore the ALJ and proceed with its own
judicial hearing, the applicant is prepared to rebut the proposed exceptions and to reaffirm
the right, fitness, and qualifications of the applicant to be licensed as provided under the
City Code.
This matter is comprised of two major issues, Easterly stated. 1) Whether or not a
business of this type, a non-alcoholic, coffee cafe, with Karaoke music, is appropriate for
the City of Saint Paul, and 2) if it is, is the applicant qualified and fit to be licensed to
operate that business. The Saint Paul Board of Zoning considered Mr. Phan's application
in February and gave its approval to the business. Mr. Phan was required to submit a site
plan and a plan for operating the business.
Mr. Easterly noted various establishments in St. Paul with Karaoke music and said he felt
the only question before the Council is, given the acceptance of these businesses in the
community, whether it is also appropriate to approve the operation of a Vietnamese
Karaoke cafe. The argument has been made on behalf of the City that there is a peculiar
danger in licensing a Vietnamese cafe because of a propensity of the Vietnamese to engage
in gang activity, he stated. He disputed any basis for that conclusion although concurred
there is a gang problem in the Twin Cities. He noted that an Asian police officer, Timm
Gilkison, was hired by Cafe Karaoke and Officer Gilkison has strongly endorsed the
establishment This officer is a member of the task force on youth gangs. Mr. Easterly
read into the record a supplement report dated 10/18/95, Applicant's Exhibit #3,
"Information to Homicide by ACOP team member Timm Gilkison.
(Thune left and returned)
Mr. Easterly further discussed the amended application saying it is not consistent with ALJ
findings to say there is no precedent for the Office of LIEP to accept an amended
application. He said they take strong exception to that point.
February 28, 1996 City Council Summary Minutes Page 20
Mr. Easterly continued by refuting the written exceptions.
Mr. Dave Feinwachs, co-counsel, stated that Detective Wayne Wallace was flown in from
Los Angeles to provide testimony as an expert on Southeast Asian gang activity. Mr.
Feinwachs read an excerpt from a transcript of the ALJ hearing.
One of the contested points is whether Mr. Phan is an unfit person to operate a business
because he had opened the business for three weeks based upon the application for a
license which Mr. Phan understood to be a license. The ALJ did not find this assumption
unreasonable. Mr. Feinwachs pointed out that on this date Mr. Phan received a license
renewal notice from LIEP. He said there is confusion as to the status of Mr. Phan's
license and whether his reliance upon those documents was reasonable.
Mr. Feinwachs asked the Council to consider that Mr. Phan stopped operation of his
business immediately when he was told he did not have a license. That goes a long way
towards demonstrating the character of the applicant and whether or not he is fit to run a
business, Feinwachs stated.
It was further pointed out by Feinwachs, that many of the allegations were not witnessed
by anyone and, therefore, it cannot be proven that any of them occurred. He noted that
Mr. Phan, by his own decision, installed a metal detector and the security officer was
instructed by Mr. Phan not to allow guns or any other weapons in the building. Also,
people wearing gang colors were not allowed on the premises. Only coffee is served, no
alcohol, and people who have been drinking are not allowed to enter.
Mr. Feinwachs asked that Mr. Phan be granted a license as well as an apology.
(The meeting was recessed from 7:10-7:20 p.m.)
Present - 5 - Blakey, Bostrom, Harris, Megard, Thune
Absent - 2 - Guerin, Rettman (Excused)
Mr. Phil Miller responded that his main area of concern is the implication that LIEP is
showing a racial bias against the opening of a Vietnamese Karaoke cafe. The realities are
that the denial recommended by LIEP is based upon the actions of the applicant. The
applicants themselves are the only ones who have raised the issue of race. Further, the
position that Officer Gilkeson has taken is directly opposite that of the Chief of Police and
the Special Investigations Unit who specifically made recommendations for denial of the
application. He also pointed out that it was admitted during cross examination of the block
club leader that she did not sign the petition, rather it was her husband who signed. Also,
at no time did the applicants inform them of the problems they had in California or at the
St. Paul establishment. A point was also made that the block club leader was not aware of
complaints about the establishment; however, she admitted on cross exam that it is not
February 28, 1996 City Council Summary Minutes Page 21
common for neighbors to initiate their complaints about a particular place to them before
making a complaint with the Mayor's Citizen Service Office.
Councilmember Blakey moved to close the public hearing. Yeas - 5 Nays - 0
Councilmember Blakey said he was persuaded by the evidence presented by the Office of
License, Inspections, and Environmental Protection. Based on past performance and
manner of behavior of the applicant, there appears to be a history of violations of laws and
ordinances. He expressed concern that if the applicant was granted a license, the public
health and safety of the community would be in jeopardy based on past evidence and past
performance. He further expressed concern with incidents that took place in California,
the number of dangerous incidents in the St. Paul establishment, and the unwillingness of
the applicant to work with the police in the past. Councilmember Blakey said he has
received numerous complaints from neighbors and business.
Based on the above, Councilmember Blakey moved to deny the license.
Adopted Findings of the License, Inspections and Environmental Protection Office and
denied the license. Yeas 5 Nays - 0 (Guerin and Rettman not present for vote)
Councilmember Harris moved to adjourn the m-eting.
A.JO D A 7:30 P.M.
rA41.0 air
ID avid Th nlrouncil President
ATTEST:
Minutes approved by Council
Nancy Afiterson ate l 3 q (,
Assistant Council Secretary
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