Approved Minutes 3-12-2003Page 1 of 9
SUMMARY MINUTES OF THE
SAINT PAUL CITY COUNCIL
Wednesday, March 12, 2003 - 3:30 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
The meeting was called to order at 4:40 p.m. by Council President Bostrom.
Present - 6 - Benanav, Blakey, Bostrom, Harris, Lantry, Reiter
Absent - 1 - Coleman (arrived after roll call)
CONSENT AGENDA (Items 1 - 26)
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.
Councilmember Lantry requested a Item 11 be removed for discussion
Councilmember Benanav requested Item 13 be removed for discussion
Councilmember Blakey requested Item 16 be removed for discussion
Councilmember Reiter moved approval of the consent agenda as amended.
Adopted as amended Yeas - 7 Nays - 0
COMMUNICATIONS AND ADMINISTRATIVE ORDERS
1. Claims of Nancy Duff- Hruby, Mao Lee, Kathy McGowan, Colleen Nuernberg, and Sarah Richard.
Referred to the Risk Management Division
2. Communication from Mayor Kelly dated March 3, 2003, announcing his veto of the item in Council
File 403 -212 denoted "Council's Proposed Change in Spending Cut Targets for Fire" in the amount of
$58,637, and associated language, adopted February 26, 2003.
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3. Summons and Verified Complaint and Petition for Writ of Mandamus in the matter of Clear Channel
Outdoor, Inc. vs. the City of Saint Paul. (Billboards at 1278 Grand Avenue and 1670 White Bear
Avenue)
Referred to the City Attorney's Office
4. First Amended Verified Complaint and Petition for Writ of Mandamus in the matter of Clear Channel
Outdoor, Inc. vs. the City of Saint Paul. (Billboard at the northwest corner of St. Clair Avenue and Ayd
Mill Road)
Referred to the City Attorney's Office
5. Alternative Writ of Mandamus and Findings of Fact, Conclusions of Law and Order Issuing
Alternative Write of Mandamus in the matter of Clear Channel Outdoor, Inc. vs. The City of St. Paul.
(Billboards at 1278 Grand Avenue and 1679 White Bear Avenue) (Note: The Community Councils'
related appeals were laid over from March 5 to March 26)
Referred to the City Attorney's Office
6. Notice of Motion and Motion of respondent Tuft Properties, LLC to Withdraw Monies on Deposit;
Affidavit of Thomas W. Tuft; and [Proposed] Order Granting Respondent's Tuft Properties, LLC's
Motion to Withdraw Monies on Deposit in the matter of the Housing and Redevelopment Authority of
the City of St. Paul v. the City of St. Paul, et al.
Referred to the City Attorney's Office
7. Letter from the Office of License, Inspections and Environmental Protection announcing a public
hearing before the City Council on March 26, 2003, to consider the application of Molly E. Skinner,
owner of Skinner's Pub, to allow live band music in an outdoor tent at Skinner's Pub, 919 Randolph
Avenue, on May 31, 2003, from 12:00 noon to 10:00 p.m.
8. Letter from the Office of License, Inspections and Environmental Protection announcing a public
hearing before the City Council on March 26, 2003, to consider the appeal of Russanne Low to a
decision of the Board of Zoning Appeals granting a side yard setback variance in order to construct a 3.5
by 10 foot addition to the east side of the house at 1280 Keston Street.
9. Letter from the Department of Planning and Economic Development announcing a public hearing
before the City Council on April 2, 2003, to consider the application of the Metropolitan Council
(Eastside Bus Garage) for approval of a final plat to create two industrial lots at 800 Mississippi Street
between York and Minnehaha Avenues.
10. Letter from the Citizens Service Office /Division of Property Code Enforcement declaring 20
Sycamore Street East as nuisance property and setting date of Legislative Hearing for March 11, 2003,
and City Council Hearing for March 26, 2003.
11. Administrative Orders: (See discussion on Page 5)
D002246 Authorizing the Division of Marketing and Promotions to provide supplies, printing and
advertising materials, not to exceed $8,000.00, to aid in promoting the Actors Theater in Saint Paul.
D002247 Authorizing the Division of Parks and Recreation to purchase food items and to pay catering
companies who provide food, not to exceed $25,000.00, for the Marjorie McNeely Conservatory Special
Events for 2003.
D002248 Amending the spending plans for Public Works Administrative and Support Services Fund
activities to balance actual spending against adjusted budgets.
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D002249 Authorizing payment, not to exceed $350.00, to Byerly's to cover expenses for food service
for the participants in the Police Department's Interview and Interrogation Course on April 16 -18, 2003,
at Hamline University.
D002250 Authorizing payment, not to exceed $2,500.00, to U.S. Interagency OPSEC Support Staff,
Greenbelt, Maryland, to cover travel expenses for the instructor for the "Operational Security Course"
sponsored by the Police Department's Professional Development Institute on March 4 -5, 2003, at the
Police Department Eastern District, 722 Payment Avenue.
D002251 Authorizing payment, not to exceed $150.00, to Byerly's, 1959 Suburban Avenue, for food
service for the participants in the Police Department's "Operational Security Course" on March 14, 2003.
Noted as on file in the City Clerk's Office
FOR ACTION
12. Approval of minutes of February 26, 2003.
Adopted Yeas - 7 Nays - 0
13. (Discussed after the consent agenda)
14. Resolution - 03 -243 - Recommending that the Board of Ramsey County Commissioners approve the
repurchase application for the property at 542 Portland Avenue.
Adopted Yeas - 7 Nays - 0
15. Resolution - 03 -244 - Exempting the "Federowski's" project from the Arcade Street Moratorium.
Adopted Yeas - 7 Nays - 0
17. Resolution - 03 -246 - Memorializing City Council action taken December 11, 2002, granting the
appeals of Saint Anthony Park Community Council, Scenic St. Paul, and Jay Dregni to a decision of the
Planning Commission to uphold a billboard repair permit issued by the Office of License, Inspections
and Environmental Protection (LISP) and denying the request of neighborhood organizations to revoke
the repair permit for an old single- sided, wooden billboard at 1016 Raymond Avenue (east side of
Raymond Avenue at Raymond Place).
Adopted Yeas - 7 Nays - 0
18. Resolution - 03 -247 - Memorializing City Council action taken November 20, 2002, denying the
appeal of Clear Channel Outdoor, Inc. to a decision of the Saint Paul Planning Commission revoking a
billboard repair permit issued by the Office of License Inspections and Environmental Protection (LISP)
for a wooden, v- shaped billboard with two sign faces on the northwest corner of St. Clair Avenue and
Ayd Mill Road.
Adopted Yeas - 7 Nays - 0
19. Resolution 03 -248 - Memorializing City Council action taken January 22, 2003, denying the appeal
of Pawn America Minnesota, LLC to a decision of the Planning Commission denying the application for
a conditional use permit to operate a Pawn Shop at 1907 Suburban Avenue.
Adopted Yeas - 7 Nays - 0
20. Resolution - 03 -249 - Approving the decisions of the Legislative Hearing Officer on Appeals of
Letters of Deficiency, Correction Orders, and Correction Notices for 39 Avon Street South, 45 Avon
Street South, 733 Pierce Butler Route, and 469 Whitall Street.
Adopted Yeas - 7 Nays - 0
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21. Resolution - 03 -250 - Authorizing the Police Department to enter into an agreement with Hamline
University for police training space rental at Hamline University on March 4 -6, 2003, and April 16 -18,
2003.
Adopted Yeas - 7 Nays - 0
22. Resolution - 03 -251 - Authorizing the classified non - represented legislative and management
personnel to place their "severance" pay in the City's Post Employment Health Plan.
Adopted Yeas - 7 Nays - 0
23. Resolution - 03 -252 - Approving the use of advance financing from the State of Minnesota, not to
exceed $3 million, for the 2003 MSA Program.
Adopted Yeas - 7 Nays - 0
24. Resolution - 03 -253 - Amending Council File 02 -1127 to add opposition to House File 261 relating
to the Minnesota Citizens' Personal Protection Act of 2003.
Adopted Yeas - 7 Nays - 0
25. Preliminary Order - 03 -254 - In the matter of acquiring the property at the northwest corner of Grove
and Olive Streets and the southeast corner of 13th and Olive Streets for parking for the new Police
Department Headquarters (Griffin Building), and setting date of public hearing for April 2, 2003. (File
No. AE2002 -6)
Adopted Yeas - 7 Nays - 0
26. Resolution Approving Assessment - 03 -255 - In the matter of the assessment of benefits, cost and
expenses for boarding up vacant buildings for part of December 2002 and all of January 2003 (J0301B);
demolition of buildings from January 2003 to part of February 2003 (J0301C); and summary abatements
(property clean - up)for part of December 2002 to part of January 2003 (J0301A), and setting date of
public hearing for April 23, 2003.
Adopted Yeas - 7 Nays - 0
11. Administrative Orders:
D002246 Authorizing the Division of Marketing and Promotions to provide supplies, printing and
advertising materials, not to exceed $8,000.00, to aid in promoting the Actors Theater in Saint Paul
Councilmember Lantry questioned if this was an appropriate use for an administrative order. In light of
the budget issues the city is currently facing, she said she cannot believe that $8,000 was spent to
promote a theater production. She said she felt the Council should send a message that these types of
expenditures should not occur.
Councilmember Coleman said he agrees with Lantry's concern but disagrees with the conclusion. At this
time, the city has a Marketing Department and there are obligations to fulfill. Discussions about Actors
Theater have been on -going for a long time in terms of how the city can assist them. There was concern
that the theater may move to Minneapolis because of St. Paul's lack of support for them. He concurred
that every single city dollar has to be watched, but he did not feel they should single out this expenditure
and say it's inappropriate.
D002249 Authorizing payment, not to exceed $350.00, to Byerly's to cover expenses for food service
for the participants in the Police Department's Interview and Interrogation Course on April 16 -18, 2003,
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at Hamline University.
D002251 Authorizing payment, not to exceed $150.00, to Byerly's, 1959 Suburban Avenue, for food
service for the participants in the Police Department's "Operational Security Course" on March 14, 2003.
Councilmember Benanav discussed these two administrative orders saying he does not feel food should
be purchased for these types of events during tough budget times. He has asked the Budget Office for an
accounting of how much money has been spent on food for events of this kind and he hopes they do not
see these kinds of expenses again.
D002247 Authorizing the Division of Parks and Recreation to purchase food items and to pay catering
companies who provide food, not to exceed $25,000.00, for the Marjorie McNeely Conservatory Special
Events for 2003.
With regard to this administrative order, Councilmember Benanav said he was told by Bob Bierschied,
Superintendent of the Division of Parks and Recreation, that there is no risk to the city with this event as
reservations will be taken and people will pay to attend events. He questioned why the city would be
fronting $25,000.00
Bob Bierschied, Superintendent of the Division of Parks and Recreation, appeared and said if money is
spent on food, policy requires that an administrative order be prepared. Even though it's a special fund
activity account, it's paid for by citizens going to the event. There is no risk to the city as the money is
always collected before hand.
Councilmember Benanav encouraged the city not to be spending money on food. Councilmember
Lantry said that Deputy Mayor Flaherty explained to her that with regard to the two administrative
orders pertaining to the police courses, participants pay a fee for the course which includes the cost for
food. She requested that this always be clarified on the green sheets.
13. Resolution - 03 -242 - Approving the appointments, by Mayor Kelly, of Anthony Coletta and Dan
Scott, and the reappointments of Matt Anfang, Carole Murphy Faricy, Richard Kramer, and Christine
Zimmer Lonetti to the Planning Commission.
Councilmember Benanav said it has always been the policy, based on a resolution passed by the City
Council, to have three term limits and the previous administration applied that to each appointment. He
noted that there are at least two members who are being reappointed who will now exceed the three -term
limit. He questioned why the policy is being changed when in the past it has been strictly enforced. He
said he feels the Planning Commission should reflect the geographic diversity of the city.
The following requests were made by the Council and the Administration was requested to provide a
response at the March 26 Council meeting:
1) Why are the three -year term limits not being applied based on a Resolution adopted by the Council?
2) What kind of geographic diversity do we have?
3) Provide a map of where current Planning Commission members live and where representation is
proposed, as well as District Council and Legislative boundaries.
The Council also requested that the City Attorney provide an opinion regarding the basis for three
consecutive term limits for Planning Commission appointments; is it State law or a Council policy
determination?
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Councilmember Harris said the people being recommended are extremely qualified, a couple of whom
have served the city in "amazing capacities." He feels these people should be reappointed.
Councilmember Blakey moved to lay over to March 26.
Laid over to March 26 Yeas - 7 Nays - 0
16. Resolution - 03 -245 - Approving the Housing Action Plan 2003.
Based on the budget discussion on this date, Councilmember Blakey asked if this item should be laid
over until they know where they're going as it has an impact on the number of units with which the
Council will go forward.
Councilmember Blakey moved to lay over four weeks and the Council requested the Administration
and /or the Department of Planning and Economic Development respond to the following requests:
1) Why was the Koch Mobil project not included among the 2003 projects?
2) Provide an explanation as to why there appears to be a departure from the 20% guideline in the plan.
3) The Council voted for implementation of the St. Paul Emergency Housing Fund as one of its goals;
this should be incorporated in Action Steps 3.4 page 9.
Councilmember Harris asked Gary Peltier, PED, if the report was being sent out to other groups that are
involved in housing for comment and not just to the partners that have been listed.
Mr. Peltier responded that a notice was sent that the plan was available to all of the community
development corporations, the planning councils, all of the funders, developers, and all the parties that
are involved in housing in St. Paul. The notice was sent at the same time that the task force was
reviewing it.
Laid over to April 9 Yeas - 7 Nays - 0
FOR DISCUSSION
27. Resolution - 03 -256 - Accepting the winning proposal and awarding the bid for the
$26,280,000 Sewer Revenue Bonds Series 2003D.
Todd Hurley, Office of Financial Services, Treasury Division, appeared. He said that due to the low
interest rates, the sale was decreased to $26,280,000. The proceeds of this bond issue will be used to
refund the 1993 sewer revenue bonds which were an advanced crossover refunding of the 1988 sewer
revenue bonds.
About two weeks ago, the rating agencies visited with staff regarding the Sewer Utility and the results of
that visit were excellent. Moody's upgraded the Sewer Utility rating to Al and Standard & Poor's
upgraded to AAA. This is the highest possible rating a sewer utility can receive.
Due to a combination of factors in play including municipal tax exempt bonds being at an historical low,
the strong demands for the city's bonds, the high quality and the high rating, resulted in a great sale. The
city received national exposure on this sale receiving an unprecedented seven bids for this bond issue.
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Bids were received from the local underwriting firms as well as underwriting firms from Chicago, New
York, and North Carolina.
The lowest bid came in at 1.85% from Solomon Smith Barney, Inc. The cover bid was 1.86% from UBS
PaineWebber. Of the seven bids received, not one of them was for over 2% and the spread between the
lowest and the highest was only 9 basis points.
The refunding results as far as the statistics is that the present value of the refunded debt service, which
is the Minnesota test used as a key in selling these bonds, was 7.04% and they typically only look at
things that are above 3 %. The next present value, which is the actual cash the city is going to save on a
present value basis, is $2.7 million. That results in an average annual savings of approximately $750,000
from the years 2004 through 2008.
Pages 2 through 32 of the resolution were substituted which Mr. Hurley briefly explained.
Councilmember Blakey asked what was done in Public Works for the bonds to be so great. Bruce Beese
and Bruce Elder of the Public Works Utility appeared. Mr. Beese, Fund Accountant for the Sewer
Utility in Public Works, said they were pleasantly surprised with the AAA bond rating and with the
1.85% sale on this date. They were informed by Standard and Poors of the AAA rating last week. They
said they found no substantial risk in the city's bonds related to a number of factors. The city has a
separated storm and sanitary system. St. Paul is one of a very few cities of our size in the country that
have done that and have it paid for. Public Works has an on -going and annually updated maintenance
and rehabilitation program that keeps them on top of their system and what has to be done. The
Metropolitan Council owns all of the treatment works for the metropolitan area so Pubic Works does not
have the liability on that side of the treatment equation.
Mr. Beese said they have raised rates in the past when appropriate and credit goes to the City Council
and the Mayor's Office for staying on top of those issues to make sure there is a funded system. They
work to put policies in place together with the Council and the Administration to make sure that they
have the financial planning needed for a $40 million per year operation. Mr. Beese extended thanks and
appreciation on behalf of the Department of Public Works to the City Council as well as many other
people for giving them good counsel in this matter.
Councilmember Harris asked about bond insurance. Mr. Hurley responded that the reason for insurance
is twofold: 1) they needed to make sure that this bond got into the hands of institutional investors with
the split AAA /A1 rating to insure the city a good rate; 2) the surety bond in the amount of $2.6 million
cannot be bought without insurance. With the low interest rate on the bonds, they would need to bond
fund to reserve and that reserve would be yield restricted at 1.8% while the city's internal pool is earning
more than that. The difference between investing at 3.5% vs. 1.8% more than pays for the insurance and
the surety premium.
Councilmember Blakey moved approval as amended.
Adopted as amended Yeas - 7 Nays - 0
Todd Hurley introduced Dave MacGillivray, the city's financial advisory from Springsted. Mr.
MacGillivray presented awards to the Council and to the Mayor's Office for obtaining an AAA on the
Sewer Utility and to recognize the fact that this is the first and only AAA rated sewer utility by Standard
and Poors in the nation.
28. Resolution - 03 -237 - Ordering the owner to remove or repair the building at 1107 Bush Avenue
within fifteen (15) days from adoption of resolution. (Legislative Hearing Officer recommends
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approval) (Laid over from March 5)
Marcia Moermond, Legislative Hearing Officer, reported that during the past week, Bank of America,
the owner, posted a bond and the code compliance inspection was completed. They have also secured a
bid to complete all of the repairs listed in the code compliance inspection and have authorized the
contractor to go up to almost $75,000 in order to make those repairs. Because of weather concerns and
the roofing items that came up in the code compliance inspection, Ms. Moermond recommended
extending the time of Councilmember Lantry's original recommendation to give the owner 90 days to
complete rehabilitation to either 120 or 180 days.
Councilmember Lantry said she received a letter from Bank of America in which they requested 100
days to complete rehabilitation.
Councilmember Lantry moved to amend the resolution to allow 100 days for rehabilitation.
Adopted as amended (remove or repair within 100 days) Yeas - 7 Nays - 0
ORDINANCES
NOTE: AN ORDINANCE IS A CITY LA W ENACTED BY THE CITY COUNCIL. IT IS READ AT FOUR
SEPARATE COUNCIL MEETINGS AND BECOMES EFFECTIVE AFTER PASSAGE BY THE
COUNCIL AND 30 DAYS AFTER PUBLICATION IN THE SAINT PA UL LEGAL LEDGER
29. Final Adoption - 03 -102 - An ordinance amending Chapter 310 of the Saint Paul Legislative Code
deleting certain licenses no longer enforced by the City of Saint Paul and reflecting new license fees for
tanning parlors, massage centers, therapeutic massage practitioners, sidewalk cafes, animal permits, dog
licenses and boarding fees. (Amended and laid over from March 5 for final adoption)
Councilmember Lantry move approval.
Adopted Yeas - 7 Nays - 0
30. Second Reading - 03 -234 - An ordinance amending Chapter 60 of the Saint Paul Legislative Code
pertaining to zoning for the City of Saint Paul with changes for the Irvine Avenue hillside in the zoning
map, in off - street parking standards, and hillside design standards.
Laid over to March 26 for third reading /public hearing
31. Second Reading - 03 -235 - An ordinance amending Chapter 60 of the Saint Paul Legislative Code
pertaining to citywide zoning regulations for development on steep slopes.
Laid over to March 26 for third reading /public hearing
32. Second Reading - 03 -241 - Adopting the revised floodplain regulations and zoning maps for all
property in the City of Saint Paul located within the floodplain. (Public hearing held March 5)
Laid over to March 19 for third reading
33. First Reading - 03 -257 - An ordinance amending the interim ordinance adopted in Council File No.
01 -648 (The Arcade Street Study) by extending the terms of the interim ordinance established therein
for an additional six months as authorized in Minn. Stat. § 462.357, Subd. 4.
Laid over to March 19 for second reading
34. First Reading - 03 -258 - An ordinance creating a separate library agency and establishing its duties,
powers and composition.
Laid over to March 19 for second reading
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Councilmember Lantry moved to adjourn the meeting. Yeas - 7 Nays - 0
ADJOURNED AT 4:20 P.M.
Daniel Bostrom, Council President
ATTEST:
Minutes approved by Council
Nancy Anderson March 26, 2003
Assistant Council Secretary
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