Approved Minutes 12-26-2001Page 1 of 9
SUMMARY MINUTES OF THE
SAINT PAUL CITY COUNCIL
Wednesday, December 26, 2001 - 3:30 - 5:00 p.m.
CITY COUNCIL CHAMBERS, 3RD FLOOR
City Hall and Court House
15 West Kellogg Boulevard
Web Index
• Consent Agenda
• Communications and Administrative Orders
• For Action
• For Discussion
• Ordinances
• Housing and Redevelopment Authority
The meeting was called to order at 3:30 p.m. by Council President Bostrom.
Present - 5 - Benanav, Blakey, Bostrom, Lantry, Reiter
Absent - 2 - Coleman (arrived later in meeting), Harris (arrived after roll call)
CONSENT AGENDA (Items 1 -21)
Council President Bostrom requested Items 8, 9, 10, 11 be laid over one week at the request of Mayor -
Elect Randy Kelly.
Council President Bostrom removed Item 21 for discussion.
Councilmember Blakey moved approval of the Consent Agenda as amended.
Adopted Yeas - 6 Nays - 0
NOTE: ALL ITEMS LISTED UNDER CONSENT AGENDA WILL BE ENACTED BY ONE
MOTION. THERE WILL BE NO SEPARATE DISCUSSION OF THESE ITEMS. IF DISCUSSION IS
DESIRED BY A COUNCIL,MEMBER, THAT ITEM WILL BE REMOVED FROM THE CONSENT
AGENDA AND CONSIDERED SEPARATELY.
COMMUNICATIONS AND ADMINISTRATIVE ORDERS
1. Claims of James Denno, Hoglund, Chwialkowski & Greeman, Attorneys at Law (for Kou Thao),
Scott Keith, Peter Magnuson, Milavetz, Gallop & Milavetz, P.A. (for Farah Ahmed Heik), Stephen
Netstead, and Todd Starich.
Referred to the Risk Management Division
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2. Notice of Filing of Award in the matter of the Port Authority of the City of Saint Paul v. Tri Leasing
& Construction, Inc., et al.
Referred to City Attorney's Office
3. Letter from the Real Estate Division announcing a public hearing before the City Council on January
23, 2002, to consider the petition of Tom Huonder to vacate part of Ruth Street north of Magnolia Street
to permit erection of a fence in order to prohibit illegal dumping.
4. Letter from the Office of the City Attorney announcing a hearing before an Administrative Law Judge
on January 23, 2002, at 9:30 a.m., Room 220, Conference Room B, St. Paul City Hall, to consider the
Wrecker /Towing License held by A -1 Able Towing, 14 E. Acker Street.
5. Letters from the Citizen Service Office /Division of Property Code Enforcement declaring 1118
Central Avenue West and 1022 Stinson Street as nuisance properties. (For notification purposes only;
public hearings will be held at a later date if necessary.)
6. Administrative Orders:
D002093 Budget revision in the Division of Parks and Recreation to provide Capital Maintenance
Program contingency funding for ventilation improvements to the Forestry Garage to address health and
safety issues.
D002094 Amending the 2001 budget in the Financial Services Office for the PC Replacement Program.
Noted as on file in the City Clerk's Office
FOR ACTION
7. Approval of minutes of November 21, 2001.
Adopted Yeas - 6 Nays - 0
8. Resolution - 01 -1323 - Approving the reappointments of Marjorie Ebensteiner, John Loban, John
Barry Margot, and Michelle Ketcham, by Mayor Coleman, to the Neighborhood Sales Tax
Reinvestment (STAR) Board.
Laid over to January 2 Yeas - 6 Nays - 0
9. Resolution - 01 -1324 - Approving the reappointments of Richard Newmark and Kurt Schroeder, by
Mayor Coleman, to the Bicycle Advisory Board.
Laid over to January 2 Yeas - 6 Nays - 0
10. Resolution - 01 -1325 - Approving the appointment of Thomas Moran and the reappointments of
William J. Cosgriff, Bill Daly and Steve Zaccard, by Mayor Coleman, to the Business Review Council.
Laid over to January 2 Yeas - 6 Nays - 0
11. Resolution - 01 -1326 - Approving the appointments of Sean Brown and Mark Evangelist and the
reappointments of Gerald Beedle, Diane O'Donnell and Clayton Larson, by Mayor Coleman, to the
Truth In Sale of Housing Board of Evaluators.
Laid over to January 2 Yeas - 6 Nays - 0
12. Resolution - 01 -1327 - Increasing the 2001 financing and spending plan for the
Police Department Vehicle Impounding Lot.
Adopted Yeas - 6 Nays - 0
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13. Resolution - 01 -1328 - Amending Council File 496 -316 regarding vacating air rights above Cedar
Street for the Raddison Ballroom.
Adopted Yeas - 6 Nays - 0
14. Resolution - 01 -1329 - Approving a professional services agreement with Environmental
Systematics of Minnesota (consultant) to recalibrate and reset the existing HVAC systems at Fire
Station 414.
Adopted Yeas - 6 Nays - 0
15. Resolution - 01 -1330 - Amending the spending and financing plans of the 1999, 2000, and 2001
Sidewalk Reconstruction project in the Department of Public Works by increasing assessments and
moving PIA funding forward to 2001.
Adopted Yeas - 6 Nays - 0
16. Resolution - 01 -1331 - Amending the spending and finance plans of the North Quadrant project in
the Department of Planning and Economic Development.
Adopted Yeas - 6 Nays - 0
17. Resolution - 01 -1332 - Amending the 2001 Capital Improvement Budget in the Division of Parks
and Recreation to include additional funds in the Shepard Road Scenic Overlook project.
Adopted Yeas - 6 Nays - 0
18. Resolution - 01 -1333 - Amending the 2001 Capital Improvement Budget in the Division of Parks
and Recreation to accept an increased amount of State of Minnesota Metro Greenways funds for
conservation easement on the Lower Phalen Creek site.
Adopted Yeas - 6 Nays - 0
19. Resolution - 01 -1334 - Amending the 1999 Capital Improvement Budget in the Division of Parks
and Recreation to include additional funding for City Academy - Wilder Recreation Center remodeling
and addition project.
Adopted Yeas - 6 Nays - 0
20. Resolution Approving Assessment and Fixing Time of Hearing - 01 -1335 - In the matter of the
assessment of benefits, cost and expenses for installation of a Fire Protection System at 340 Cedar Street
(St. Paul Athletic Club - Floor 14), and setting date of public hearing for January 23, 2002. (File No.
FP9904)
Adopted Yeas - 6 Nays - 0
FOR DISCUSSION
21. Resolution - 01 -1336 - Approving the 2001 year -end budget adjustments.
Ronald Klein, Budget Office, appeared and stated the original document was missing one item so a
substitute resolution was prepared.
Councilmember Blakey moved to introduce the substitute resolution and approval.
Substitute adopted Yeas - 6 Nays - 0
22. Resolution - 01 -454 - Ordering the owner to remove or repair the building at 1236 Seventh Street
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East within fifteen (15) days from adoption of resolution. (Legislative Hearing Officer recommends
approval) (Laid over from June 6 and June 27)
Councilmember Lantry indicated there was a change in ownership of this property and she moved to lay
over one week.
Laid over to January 2 Yeas - 6 Nays - 0
(Coleman arrived)
23. Resolution - 01 -1073 - Moving funds out of contingency to execute a contract with Stellent, Inc. for
e- Government Initiative. (Laid over from October 24 and November 7)
Council President Bostrom asked if this accomplished what was attempted in the budget process. Susan
Kimberly, Deputy Mayor, responded that it does and the Administration supports it.
Councilmember Blakey moved approval.
Adopted Yeas - 7 Nays - 0
24. Resolution - 01 -1316 - Approving the Joint Powers Agreement with Metro Transit and Metropolitan
Council concerning the Riverview Corridor Project. (Laid over from December 19)
Councilmember Harris moved a one week layover at the request of staff.
Laid over to January 2 Yeas - 7 Nays - 0
ORDINANCES
NOTE: AN ORDINANCE IS A CITY LA W ENACTED BY THE CITY CO UNCIL. IT IS READ AT FO UR
SEPARATE COUNCIL MEETINGS AND BECOMES EFFECTIVE AFTER PASSAGE BY THE
CO UNCIL AND 30 DAYS AFTER P UBLICATION IN THE SAINT PA UL LEGAL LEDGER.
(Also see Item 26)
25. Final Adoption - 01 -1243 - An ordinance requiring persons or organizations that engage in vehicle
immobilization services to be licensed.
Councilmember Blakey asked if all services will be licensed and if they are all local organizations.
Council President Bostrom responded they would have to be licensed to do business in St. Paul even if
they are not physically located here.
In other cities companies will place a boot on someone's car, Blakey said. He is concerned about how
much policing is going on. Council President Bostrom responded the alternative is someone getting their
car towed away. This gives the City some control over the people doing that.
Councilmember Blakey moved approval.
Adopted Yeas - 7 Nays - 0
26. Final Adoption - 01 -1244 - An ordinance amending the license fee schedule to add a fee for vehicle
immobilization service licenses.
Councilmember Blakey moved approval.
Adopted Yeas - 7 Nays - 0
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The City Council requested that the Office of License, Inspections and Environmental Protection (LISP)
present a report on June 26, 2002, regarding the implementation of these two new ordinances. (Council
Files 01 -1243 and 01 -1244)
27. Final Adoption - 01 -1260 - An ordinance granting a 7% discount on theater liquor license fees for
attending alcohol awareness training by an authorized provider and to extend the separate fee for
intoxicating liquor licenses issued to theaters.
Councilmember Coleman moved approval.
Adopted Yeas - 7 Nays - 0
28. Third Reading - 01 -1290 - An ordinance memorializing City Council action granting the application
of John and Helen Regenold (representative - David Engfer) to rezone property from B -3 (single family
residential) to Rm -2 (multi - family residential) to allow construction of a 26 -unit senior cooperative at
the southeast corner of Idaho and Arundel Streets. (Public hearing held November 7)
Laid over to January 2 for final adoption
29. Third Reading - 01 -1291 - An ordinance memorializing City Council action granting the application
of Mike Leitner to rezone property from RM -2 (Multiple Family) to B -3 (General Business) to allow
expansion of Leitner's Garden Center parking lot at 959 Randolph Avenue (between Milton and
Chatsworth Streets). (Public hearing held November 14)
Laid over to January 2 for final adoption
30. First Reading - 01 -1337 - An ordinance amending Chapter 200 of the Saint Paul Legislative Code
setting conditions for maintaining a dog designated as "potentially dangerous," requiring licensees to be
at least 18 years of age, and establishing appeals procedures for the designations of dogs as "potentially
dangerous" and "dangerous" and authorizing dogs to be seized and held pending hearings.
Laid over to January 2 for second reading
Suspension Items
Councilmember Reiter moved suspension of the rules and approval of the following resolution:
Resolution - 01 -1338 - Amending the 1999 Capital Improvement Budget for the Trout Brook Corridor
Acquisition Project and accepting additional funding from MNDOT and DNR Metro Greenways.
Bill Huepenbecker, Mayor's Office, appeared and stated this resolution allows them to pay out of the
CIB account to close on the property on December 31. Metro Greenways will be $500,000. They are in
the process of getting that but it will take a few months to go through the process. The $1.8 million from
MNDOT was delayed because of the strike but an agreement has been reached. They are waiting for the
final sign -off from the Attorney General. He noted that on Page, Line 19, the $1.3 million should be
$1.8 million.
Adopted as amended Yeas - 7 Nays - 0
Councilmember Coleman moved suspension of the rules to introduce the following resolution:
Resolution - 01 -1339 - Authorizing the City Attorney's Office to enter into a settlement with MBC
Holding Company and Gopher State Ethanol and settle the lawsuit without prejudice against those
companies with terms and conditions.
Councilmember Coleman stated this involves a potential resolution of the litigation involving the City
and MBC Holding Company and Gopher State Ethanol. He would like the Council to have a chance to
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review the document. There is some urgency
Councilmember Blakey asked what the urgency was of bringing it before the City Council at this time.
Councilmember Coleman responded that there is a financial problem at the brewery which necessitates
the City Council moving forward quickly so the brewery will be able to access private financing sources
that will allow them to continue the brewery portion of their operations. Mr. Coleman said he had a
conversation with their attorney Mike Unger moments ago. Eric Larson met with the intervenors on
Saturday. He acknowledged that it was not an ideal situation but requested the Council to take a look at
the resolution following a recess.
(See further discussion on Page 7)
Resolution - 01 -1340 - Approving the decision of the Legislative Hearing Officer on Property Code
Enforcement Appeals for property at 730 Sherburne Avenue and 880 Wilson Avenue.
Gerry Strathman, Legislative Hearing Officer, explained that this resolution approves decisions made on
December 21, 2001, with respect to condemnation orders on two properties. Property at 730 Sherburne
Avenue was the subject of a search warrant some months ago. The inspector condemned the property
based on its appearance at that time and the occupants were required to vacate. A code compliance
inspection was done, which resulted in a lengthy list of corrections. The owners appealed the inspection
stating they had corrected the items on the first order and the second list was persecuting them. At the
hearing, their counsel suggested this house was no worse than others and they were being harassed by
the City. City staff testified that is not the case and that search warrants are served in many cases without
the house being condemned. In this case, the condition of the house warranted the condemnation order.
After hearing testimony from the owner's attorney and City staff, Mr. Strathman concluded there was
just cause for the order to vacate as allowing the owners to move back in would be creating an unsafe
and unhealthy situation. He recommended denying the appeal.
Council President Bostrom asked why this was being brought under suspension at this time. Mr.
Strathman responded the order to vacate has been suspended waiting for City Council action on the
appeal. If the City Council does not act on it at this time, the condition will continue. The same is true
with the property at 880 Wilson Avenue.
Councilmember Lantry moved approval.
Adopted Yeas - 7 Nays - 0
The meeting was recessed from 3:50 to 4:05 p.m.
Roll Call: Present - 7 Absent - 0
Councilmember Coleman stated that Eric Larson, Assistant City Attorney, was present to outline some
of the considerations in this document and how they came to this point.
Councilmember Lantry stated this is a big issue which includes 12 conditions for the settlement
agreement to go forward. Councilmember Coleman noted that the hearing date set for late January has
been laid over to an undetermined date in the future.
Eric Larson stated this issue came to his attention over a week ago. He was asked to meet with the
Deputy Mayor and representatives of Lindquist and Vennum to discuss a settlement. He has done this
before and it has been a futile effort; however, this meeting was fruitful. The brewery company is facing
financial disaster and he affirmed that the brewery had been borrowing money. Mr. Larson said he
wanted noise testing and he was told they would do that. He asked for a set date for the rerouting of the
thermal oxidizer emission and he was told it would happen on January 4, 2001. Mr. Larson asked for a
certified person to verify that the work was done and they said they had somebody look at it but they
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were not sure the person was certified.
Mr. Coleman asked procedurally where the City is at noting that there was a hearing in November
seeking a temporary in junction and the motion was denied at that time. Mr. Larson responded that the
City had months in advance to set a four -day evidentiary hearing. The City knew a lot of information
was very complex. A hearing was scheduled for January 29 and on December 7, Judge Lindman
canceled the hearing. Clayton Robinson, City Attorney, urged that not be done and Judge Lindman
scheduled an evidentiary hearing date. At this point, Mr. Larson indicated he did not have anything from
the judge. Mr. Larson stated he prepared a writ of mandamus to go to the Court of Appeals to order
Judge Lindman to cast the law and make a finding with respect to public nuisance. Also, if Mr. Larson
does get a writ from the Court of Appeals, the best case scenario is that the City would get it at the end
of January. Judge Lindman has indicated he has pending before him the temporary injunction motion
which he denied but also the defendant's motion to dismiss the complaint. The chances of a motion
being granted is less than 1 %. Judge Lindman indicated he would expect it will take 90 days to take the
matter under advisement.
Mr. Larson stated Gopher State Ethanol and MBC Holding Company indicated they will agree to the
reduction of noise standards and bring them within compliance no later than March 1, 2002. Item 2 is an
acknowledgment from Gopher State that their operations have caused odor and noise problems for
citizens. Item 4 is the cooling cyclone which has been identified as the second major odor source. The
Company will complete the routing of it on or before January 4, 2002.
Councilmember Lantry noted the company will hire a heating, ventilation, and air conditioning expert to
assess control of the emissions. She referred to Item 9 which states: "Prior to the Companies' retention of
any testing companies or the HVAC expert, the Companies shall first obtain the approval of the use of
the identified companies or experts from the Office of License, Inspection, Environmental Protection
(LISP) and shall consult with the Intervenors."
Councilmember Benanav noted that a date was not specified. Mr. Larson responded he was amenable to
putting in a date; the worse case scenario may be four months. Council President Bostrom suggested
inserting April 30, 2002.
Mr. Larson stated there was data that allowed them to understand the odor emission sources and the
nature of their character and intensity. They also want to address particular chemical components that
are older in nature. Councilmember Benanav asked what this information is for. Mr. Larson responded
the City will know whether there has been a 98.5 reduction of the odor. Also, it will give the City
something with concrete data to deal with the complaints as well as for court purposes. Now there is
data backing up what people say.
An absolute for the neighborhood was to know the chemical characterization of the emissions, Coleman
said. Mr. Benanav asked if someone would look at the chemical composition to determine if the
chemicals are good or bad to be breathing. Mr. Larson responded that the Minnesota Department of
Health will be obtaining this information and will be part of the assessment.
Councilmember Benanav asked if there is anything in the settlement that would preclude the City from
re -filing a lawsuit. Mr. Larson responded yes.
Councilmember Lantry asked if the Department of Health will have to hire someone to do the testing.
Mr. Larson responded that the Department of Health has the internal capacity and resources to do the
testing and it is something they are undertaking right now. The MPCA has the authority to impose such
tests at the cost of the companies. Item 11 reads that the company agrees to pay any reasonable tests by
the Minnesota Department of Health.
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Councilmember Benanav asked who determines if the test is "reasonable." Mr. Larson responded it goes
both ways; both the City and the companies are taking a risk but it is the best job they can do.
Regarding noise, Mr. Larson stated that most mitigation efforts have been put in place and there was just
a two decimal drop. The requirement is for L50 54 -55 dBa by January 4, 2002. It was important to Mr.
Larson to put that in because he did not want to have debates about data and reliability and testing
methodology.
Councilmember Lantry noted that most of the noise equipment has been put into place yet they are still
exceeding the noise requirement. Mr. Larson responded that the intake into the thermal oxidizer is noisy
and when they complete the rerouting, that will not be part of the process. They feel confident they can
meet the 52 -55 dBa by February 1.
One of the problems with the settlement with respect to the criminal charges that were filed, stated
Councilmember Coleman, is that the City agreed that as long as there was a pending application for a
noise variance, including the variance application for the State of Minnesota, the City was unable to file
any further criminal charges if there were violations. Item 8 reads that the companies withdraw the
Minnesota Pollution Control variance application and any future variances will be filed with the City
only.
Councilmember Blakey asked where the intervenors were when this was put together. Mr. Larson
responded this is very close to the draft that was put together after the discussions and the intervenors
were e- mailed a copy. He indicated he has had continual conversations with the intervenors as well as
mailings and faxes.
Ms. Lantry asked what the current decibel level is from 10 p.m. to 7 a.m. Mr. Larson responded that it is
50 dBa. Item 8 means that any variance applications will have to come before the City Council. Item 12
is one of the points raised by the intervenors. They wanted to make sure the City is not leaving them out
in the cold and that the City will continue to work with them.
Mr. Benanav asked again why this had to be passed at this time
Jack Lee, President, Minnesota Brewing Company, appeared and stated the brewery has gone through a
tough time. They went through an upgrade and spent a lot of money with poor results. They hired the
Manchester Group, a financial firm, but were told by them that they could not receive any money if
there is a lawsuit pending. They have to do this soon or the bank will foreclose on the business.
Councilmember Coleman moved approval of the resolution.
Councilmember Benanav said hopefully this will resolve the issue. If there is testing and an odor
remains, he asked if there should be a clause that the settlement dismisses the case without prejudice.
Mr. Larson responded this will be settled without prejudice and he was agreeable to adding it to the
document.
Councilmember Blakey expressed concern that the Council is making this decision without hearing from
the public. Councilmember Coleman responded that this resolution is consistent with the resolution
passed earlier in the year which was a product of a lot of public input and testimony. The intervenors
representing the neighborhood have been consulted and they will have a say in court before there is any
final action in terms of dismissal of the lawsuit.
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Councilmember Benanav questioned if there was anything in the outline that was dropped and not
negotiated. Mr. Larson responded no.
Adopted as amended Yeas - 6 Nays - 1 (Blakey)
Councilmember Blakey moved to adjourn the meeting. Yeas - 7 Nays - 0
ADJOURNED AT 5:15 P.M.
Daniel Bostrom, Council President
ATTEST:
Minutes approved by Council
Nancy Anderson February 6, 2002
Assistant Council Secretary
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