City Council

City Council Meeting Minutes

Regular Meeting

March 23, 2009

1.         Call Roll

Mayor Klausing called to order the Roseville City Council regular meeting at approximately 5:30 pm; and recognized Cub Scout Troop No.31, who led the Pledge of Allegiance.

(Voting and Seating Order for March: Pust; Ihlan; Johnson; Roe and Klausing)

City Attorney Scott Anderson was also present.

Closed Executive Session

Pust moved, Johnson seconded, closing the meeting into Closed Executive Session, on a vote of 5/0, at approximately 5:45 pm, in accordance with Minnesota Statute, Section 13D.05, for the City Council and staff, and legal counsel to discuss attorney/client privileged information and confidential appraisal information.

1.                  Discuss Litigation Strategy Related to the Centre Pointe Redevelopment Agreement

2.                  Receive Appraisal Information Related to Acquisition of portions of property located at 2690, 2700, 2770 – 2800, and 2814 Cleveland Avenue; 1947 County Road C; 2680 – 2690 Prior Avenue; and 2785 Fairview Avenue, City of Roseville, for road and construction purposes.

Open Session

Mayor Klausing reconvened at approximately 6:59 pm in Regular Session. 

2.         Roll Call / Approve Agenda

The agenda was approved by consensus as amended.

Councilmember Ihlan requested removal of Consent Item 7.d; Mayor Klausing requested removal of Consent Item 7.g; and Councilmember Roe requested removal of Consent Item 7.j; respectively entitled, “Authorize Legal Proceedings pursuant to the Centre Pointe Redevelopment Agreement with Ryan Companies;” “Authorize City Manager to Contact Roseville’s Legislative Delegation to Oppose two bills that would allow schools to open before Labor Day;” and “Authorize Police Department to Apply for a 2009 COPS UHP Grant.”

3.         Public Comment

Mayor Klausing called for public comment by members of the audience on any non-agenda items. No one appeared to speak.

4.         Council Communications, Reports, Announcements and Housing and Redevelopment Authority Report

Mayor Klausing, on behalf of the City Council, staff, and the community, offered condolences to the family of Polly Franke, who died March 20, 2009.  Mayor Klausing recognized Ms. Frank’s residence in the community since 1951, her exemplar leadership and active service in the community for many years, and her service on the Roseville City Council for eight years; and her outstanding civic service; and her continued interest in community events and issues, and her respectful mentorship and friendship.

            Mayor Klausing noted the display of over 50 quilts at City Hall created by area contemporary quilt designers; and encouraged the public to view their remarkable and impressive work at City Hall during business hours.

          Councilmember Johnson announced that a public meeting was scheduled at Roseville Area High School gymnasium on Thursday, March 26, 2009 at 7:00 p.m. to discuss the proposed new athletic field.

5.                 Recognitions, Donations, Communications

6.         Approve Minutes

a.                 Approve Minutes of March 9, 2009 Regular Meeting

Roe moved, Johnson seconded, approval of the minutes of the March 9, 2009 Regular Meeting as presented

Roll Call

Ayes: Pust; Ihlan; Johnson; Roe; and Klausing.

Nays: None.

7.                 Approve Consent Agenda

There were no additional changes to the Consent Agenda than those previously noted.  At the request of Mayor Klausing, City Manager Bill Malinen briefly reviewed those items being considered under the Consent Agenda.

a.                 Approve Payments

Johnson moved, Klausing seconded, approval of the following claims and payments as presented.         

                                                Roll Call

            Ayes:. Pust; Ihlan; Johnson; Roe; and Klausing

            Nays: None.

b.                 Approve Business License

Johnson moved, Klausing seconded, approval of business license applications for the period of one year, for the following applicants:

Roll Call

Ayes: Pust; Ihlan; Johnson; Roe; and Klausing.

Nays: None.

c.                  Adopt a Resolution to reaffirm authorization to submit a grant application to DEED for Twin Lakes Parkway and Accept DEED Redevelopment Grant Award of $528,846

Johnson moved, Klausing seconded, adoption of Resolution No. 10697 entitled, Resolution of Applicant; reaffirming the decision to allow the City to submit a grant application to DEED’s Redevelopment Grant Program for the acquisition of right-of-way, construction of a segment of Twin Lakes Parkway, Mount Ridge Road, and associated utilities; and improvements to the intersection of Cleveland Avenue and Twin Lakes Parkway.

Roll Call

Ayes: Pust; Ihlan; Johnson; Roe; and Klausing.

Nays: None.

Johnson moved, Klausing seconded, approval to enter into an agreement with DEED to accept the $528,846 DEED Redevelopment Grant award.

Roll Call

Ayes: Pust; Ihlan; Johnson; Roe; and Klausing.

Nays: None.

e.                 Approve Amended Eureka Recycling Contract to cover increased Liability Insurance Requirement

Johnson moved, Klausing seconded, approved amendment of the recycling contract between the City of Roseville and Eureka Recycling, increasing the annual liability insurance coverage cost to $14,887.04; and authorizing the Mayor and City Manager to execute the amendment.

Roll Call

Ayes: Pust; Ihlan; Johnson; Roe; and Klausing.

Nays: None.

f.                   Approve Contract with Waste Management for Operation of Clean-up Day

          Johnson moved, Klausing seconded, approve a contract between the City of Roseville and Waste Management for operation of the City’s Clean-Up Day.

Roll Call

Ayes: Pust; Ihlan; Johnson; Roe; and Klausing.

Nays: None.

h.                 Approve General Purchases or Sale of Surplus Items Exceeding $5,000

          Johnson moved, Klausing seconded, approval of general purchases and/or contracts as follows:

Roll Call

Ayes: Pust; Ihlan; Johnson; Roe; and Klausing.

Nays: None.

i.       Adopt Resolution Authorizing Application and Acceptance of a Grant for                                                                                                                                 2009 Underage Drinking Enforcement.

Johnson moved, Klausing seconded, acceptance by the Police Department of grant funds to cover the cost of conducting two alcohol compliance checks in 2009/2010.

                             Roll Call

            Ayes:  Pust; Ihlan; Johnson; Roe; and Klausing

            Nays:  None.

8.         Consider Items Removed from Consent

a.                 Authorize Legal Proceedings pursuant to the Centre Pointe Redevelopment Agreement with Ryan Companies (former Consent Item 7.d)

At the request of Mayor Klausing, City Manager Bill Malinen briefly reviewed this item as detailed in the Request for Council Action dated March 23, 2009; noting default of the agreement dated 1997.

          Pust moved, Roe seconded, adoption of Resolution No. 10698 entitled, “Resolution Declaring Event of Default and Authorizing Legal Counsel to Initiate Litigation;” to recover amounts owed under the Centre Pointe Redevelopment Agreement.

Councilmember Ihlan noted, for the record, that this item had been discussed by the City Council in Closed Executive Session.

Councilmember Roe noted a typographical error (date) on the original resolution for correction prior to finalization.

Mayor Klausing spoke in support of the motion; however, noted that he took no pleasure in doing so, and noted the favorable relationship between the City and Ryan Companies in the past.  Mayor Klausing advised that, given the lack of response from Ryan regarding this issue, and based on the clear language of the agreement, the City had no other option.

Roll Call

Ayes: Pust; Ihlan; Johnson; Roe; and Klausing.

Nays: None.

b.                 Authorize City Manager to Contact Roseville’s Legislative Delegation to Oppose two bills that would allow schools to open before Labor Day (former Consent Item 7.g)

At the request of Mayor Klausing, City Manager Bill Malinen briefly reviewed this item as detailed in the Request for Council Action dated March 23, 2009; following contact by the Roseville Visitor’s Association (RVA) seeking City support regarding pending legislation and potential consequences to the local economy and hospitality industry.

Mayor Klausing advised that he could not support the resolution, while recognizing concerns of the RVA, due to a lack of sufficient information.  Mayor Klausing advised that his perspective was against local government being dictated to by the legislature; however, without more detailed information, he was not prepared to take action.

Councilmember Pust advised that she could not support the motion either; opining that educators in the community were best able to make those decisions; while recognizing the concerns of the business community.

Councilmember Johnson concurred with previous comments; and suggested that Councilmembers, as individual citizens, could make an impact with the legislature.

No action was taken.

c.                  Authorize Police Department to Apply for a 2009 COPS UHP Grant (former Consent Item 7.j)

At the request of Mayor Klausing, City Manager Bill Malinen briefly reviewed this item as detailed in the Request for Council Action dated March 23, 2009.

Councilmember Roe sought clarification as to whether a plan was in place to fund the positions after the three year grant period.

Police Chief Carol Sletner and Police Services Manager Karen Rubey were present to respond.

Chief Sletner advised that the department currently had one unfilled position at this time, and with additional potential budget cuts possible, it was her intent to use the grant funds, if awarded, to fill that position, in addition to make application for fill one commercial patrol and one additional traffic officer.  Chief Sletner advised that there was no City match required during the three year grant period, with the caveat that the City retain the positions awarded through the grant for an additional, full 12-month period; and that past applications had proven successful by the City.  Chief Sletner advised that, while she couldn’t dictate the future manpower and budget of the department, the needs were not fewer.  Chief Sletner spoke to the amount of activity at Rosedale Shopping Center as experienced when increasing patrols during the recent school spring break; and appreciation of the businesses there for the police presence.

Mayor Klausing sought clarification, and Chief Sletner confirmed, that this request was to apply for the grant, and that any final action to add positions would return to the City Council for approval.

Councilmember Pust spoke in support of requesting funds; and opined that while the City would be committed to retain those three positions; she anticipated that the entire staff could be flexible in absorbing the positions through attrition or other means.

Councilmember Ihlan expressed similar concerns as those of Councilmember Roe in long-term funding of the positions; and opined that the City should commit to obtaining funding from the commercial/retail sector through a specialized taxing district to fund additional patrols at Rosedale Shopping Center rather than adding that burden to the residential taxpayers.  Councilmember Ihlan suggested that the department work hard over the next three years to get that funding in place; and offered support of the motion with that caveat.

Chief Sletner advised that individual retailers at Rosedale Center were generating interest; and were discussing initiation of a petition drive for one full-time commercial officer.

Councilmember Ihlan strongly supported such an endeavor, and suggested that other communities with similar retail ventures be consulted for their input.

Councilmember Roe echoed the comments of Councilmembers Pust and Ihlan; and spoke in support of the application; noting that the three years would provide time to pursue funding opportunities.

Roe  moved, Johnson seconded, approval for the Police Department to apply for funding through the Office of Community Oriented Policing Services (COPS Office) under the COPS Hiring Recovery Program (CHRP) to fill the existing unfilled sworn position and to add the new position of full-time commercial patrol officer and a second full-time traffic officer at no cost to the City for the first three  full years of employment.

Roll Call

Ayes: Pust; Ihlan; Johnson; Roe; and Klausing.

Nays: None.

9.                 General Ordinances for Adoption

10.             Presentations

11.             Public Hearings

a.                 Public Hearing regarding On-Sale Wine and 3.2% Liquor License for Key’s Café, 1682 Lexington Avenue

At the request of Mayor Klausing, Finance Director Chris Miller briefly reviewed this item as detailed in the Request for Council Action dated March 23, 2009.

Mayor Klausing opened and closed the Public Hearing at 7:20 p.m., with no one appearing for or against.

12.             Business Items (Action Items)

a.                 Approve On-Sale Wine and 3.2% Liquor License application for Key’s Café, 1682 Lexington Avenue

Councilmember Roe asked the applicant if he was aware of the voluntary server training available to them through the City.

Applicant Roy Hunn was present; and responded that he would be willing to look into that training; and advised that the café anticipated a low volume of sales.

Mayor Klausing observed that those low volume venues usually experienced the most difficulties; and encouraged the applicant to participate in the training.

Pust moved, Ihlan seconded, approval of an On-Sale Wine and 3.2% Liquor License for Key’s Café, locate at 1682 Lexington Avenue, for the period of March 23, 2009 through December 31, 2009..

Roll Call

Ayes: Pust; Ihlan; Johnson; Roe; and Klausing.

Nays: None.

b.                 Adopt Resolution regarding Early Voting and Vote by Mail Options

City Manager Malinen noted the revisions to the ordinance since the last meeting and discussion; specifically line 42; and briefly reviewed the status of pending and related legislation.

Pust moved, Ihlan seconded, adoption of Resolution No.10699 entitled, “Consider Early Voting and Vote by Mail Options.”

Mayor Klausing requested that staff present this resolution to the legislature as soon as possible; and noted that the potential was available for savings to the City with these options.

Roll Call

Ayes: Pust; Ihlan; Johnson; Roe; and Klausing.

Nays: None.

c.                  Appoint Members to Advisory Commissions

Pust moved, Johnson seconded, appointment of Margo Fjelstad and David Horsager to the Ethics Commission for respective terms that expire March 31, 2012.

Roll Call

Ayes: Pust; Ihlan; Johnson; Roe; and Klausing.

Nays: None.

Klausing moved, Roe seconded, appointment of James Campbell to the Police Civil Service Commission for one vacancy for a term that expires March 31, 2012.

Roll Call

Ayes: Pust; Ihlan; Johnson; Roe; and Klausing.

Nays: None.

Mayor Klausing noted receipt of an e-mail from HRC Chair David Singleton late this afternoon, and his recommendation for appointment of Barbara Yates, Gary Grefenberg and Peg Kennedy to the three (3) three-year terms; and Keith Miller for the partial term ending March 31, 2011

Pust moved the slate, consistent with recommendations of Chair Singleton.  There was no second to this motion.

Councilmember Ihlan noted that one incumbent applicant was seeking reappointment; and referenced the City Council’s policy for reappointment separately from appointment; and spoke against the motion for that reason.

Councilmember Roe suggested that action be taken on the reappointment before making further appointments.

Councilmember Pust opined that she was not moving reappointment of the incumbent, based on being consistent with the recommendations of the Chair in his e-mail.

Pust and Johnson withdrew their motion to appoint the slate to the Human Rights Commission, as recommended by the commission chair, and Pust moved, Johnson seconded, not reappointing the incumbent to the Human Rights Commission.

Recess

Mayor Klausing recessed the meeting at approximately 7:28 p.m. for review of the reappointment/appointment policy; and reconvened at approximately 7:43 p.m.

Pust and Johnson withdrew their motion to not reappoint the incumbent to the Human Rights Commission.

Johnson moved, Klausing seconded, reappointment of Gale Pederson to the Parks and Recreation Commission.

Councilmember Ihlan opined that Ms. Pederson had exceeded her term limit by one  additional year.

Councilmember Johnson clarified that Ms. Pederson had quit during her first term to run for the City Council; and that upon her reappointment, she had begun a second series of eligibility for a six year term.

Mayor Klausing advised that this information had been screened and clarified by staff prior to the application process being initiated; with eligibility determined at that time.

Mayor Klausing suggested that the policy could be revisited in the future if the Council was inclined to do so; however, he opined that it was not relevant to appointment or reappointment at this time.

Councilmember Ihlan spoke in support of the motion.

Roll Call

Ayes: Pust; Ihlan; Johnson; Roe; and Klausing.

Nays: None.                        

Johnson moved, Roe seconded, appointment of Jason Etten; David Holt; and Mary Holt to the Parks and Recreation Commission.

Mayor Klausing expressed his concern in the slate, when two people from the same household were represented on a commission; and sought broader community representation.

Councilmember Ihlan concurred with the mayor’s observation.

Councilmember Pust noted that both were strong individuals in their own right; and would both serve the commission equally well.

Councilmember Johnson spoke in support of the motion; and provided his rationale in considering applicants, based in part on demographics, age, and gender  to provide that broad representation and various perspectives to the City’s park system.

City Manager Malinen noted that there was one vacancy on the commission that expired earlier, requiring designation of which applicant would serve which term.

Johnson moved, Roe seconded, amendment to the original motion, appointing Jason Etten; and Mary Holt to two vacancies for terms that expire March 31, 2012; and David Holt to one vacancy for a term that expires March 31, 2010.

Roll Call (Amendment)

Ayes: Pust; Ihlan; Johnson; Roe; and Klausing.

Nays: None.                          

Roll Call (Original Motion as Amended)

Ayes: Pust; Johnson; Roe; and Klausing.

Nays: Ihlan.                          

Pust moved, Roe seconded, reappointment of Joe Wozniak to the Planning Commission for a three year term expiring March 31, 2012.

Roll Call

Ayes: Pust; Ihlan; Johnson; Roe; and Klausing.

Nays: None.

Roe moved, Pust seconded, appointment of Glenn Cook and John Gisselquist to the Planning Commission for three year terms expiring March 31, 2012.

Councilmember Ihlan opined that she would like to consider other options beyond the slate recommended by the Planning Commission Chair; further opining her support of appointing Gisselquist and Gary Grefenberg; noting that Mr. Cook had been unavailable for interviews.  Councilmember Ihlan advised that, due to her inability to interview Mr. Cook, she would regretfully vote against the motion.

Councilmember Roe noted that Mr. Cook had applied for a previous Commission vacancy and been interviewed at that time.  Councilmember Roe advised that he would support Mr. Cook, based on that prior interview, and the recommendation of the incoming Planning Commission Chair.

Roll Call

Ayes: Pust; Johnson; Roe; and Klausing.

Nays: Ihlan.

Pust moved, Ihlan seconded, reappointment of Joan Felice to the Public Works, Environment and Transportation Commission for a term that expires March 31, 2012.

Roll Call

Ayes: Pust; Ihlan; Johnson; Roe; and Klausing.

Nays: None.

Klausing moved, Johnson seconded, appointment of Steve Gjerdingen to the Public Works, Environment and Transportation Commission for a term that expires March 31, 2012.

Roll Call

Ayes: Pust; Ihlan; Johnson; Roe; and Klausing.

Nays: None.

Pust moved, Johnson seconded, not to reappoint incumbent Tam McGehee to the Human Rights Commission; relying on input from the Commission Chair and the number of applicants applying for this commission. 

Councilmember Pust opined that, based on her review of applicants, there were stronger applicants than Ms. McGehee for the commission, and thought they should be given a chance to serve.  Councilmember Pust clarified that applicants serve for three year terms, not six years; and thanked Ms. McGehee for her service.

Councilmember Ihlan noted that the City Council had reappointed every other incumbent seeking reappointment at tonight’s meeting.  Councilmember Ihlan read the City’s policy related to reappointment; and opined that she had heard no particular reason why Ms. McGehee did not merit reappointment; and further opined that the City Council appointed commissioners, and should not rely so strongly on the recommendation of Commission chairs.  Councilmember Ihlan questioned the intent for revamping the Human Rights Commission and its historic mission to one of neighborhood and diversity issues; and suggested that there was concern being voiced by other commissioners currently serving the Human Rights Commission.  Councilmember Ihlan advised that she would be voting against this motion.

Roll Call

Ayes: Pust; Johnson; and Klausing.

Nays: Ihlan and Roe.

Motion carried.

Pust moved, Johnson seconded, appointment of Gary Grefenberg, Peg Kennedy and Barbara Yates to the Human Rights Commission for three vacancies for terms that expire March 31, 2012.

Councilmember Ihlan opined that, since the City Council was not following appropriate procedure, she would be abstaining from this motion.

Roll Call

Ayes: Pust; Johnson; Roe; and Klausing.

Nays: None.

Abstentions: Ihlan.

Motion carried.

Klausing moved, Pust seconded, appointment of Liz Jaeger to the Human Rights Commission for one vacancy for a term that expires March 31, 2011.

Roll Call

Ayes: Pust; Johnson; Roe; and Klausing.

Nays: None.

Abstentions: Ihlan.

Motion carried.

d.                 Rezone Parcels at 1126 Sandhurst and 2167 Lexington Avenue to PUD and Approve the General Concept PUD for Wellington Management

Associate Planner Bryan Lloyd briefly reviewed the request as detailed in the staff report dated March 23, 2009.  Mr. Lloyd noted that the primary outstanding issue remained the location of the building in relationship to the traffic safety triangle; and summarized ongoing discussions and revisions since the Planning Commission meeting.

Discussion included the procedure requested in this instance for rezoning compared to past rezoning and General Concept PUD requests, and staff’s clarification of a more accurately defined approach.

Further discussion included rezoning without indication of underlying zoning, particularly rezoning from residential to commercial; and development potential for adjacent and surrounding properties, including those across the street.

Steve Wellington, President of Wellington Management

Mr. Wellington expressed appreciation for the City Council’s attention to this request; and reviewed other developments of their firm in the metropolitan area, in addition to those in Roseville.  Mr. Wellington advised that his firm was interested in doing the best job to reflect the desires of the community; and opined that the proposed project was reflective of this intent, while redeveloping this challenging site and corner location.  Mr. Wellington expressed willingness to further consider additional comments and suggestions to improve upon the proposed project.

Further discussion included issues with the zero setback on County Road B and Lexington Avenue; main thoroughfare for students to access the Roseville Area High School by foot or bicycle; sight line concerns; need for additional green space; limitations on the use of that particular parcel, and challenges to increase green space and make it financially viable; potential minor adjustments to facilitate the safety triangle; and potential shifting of the building further north to increase that visibility.

Additional discussion included the need to create an environment friendly for pedestrians and bicycles, not just cars and parking; further revisions prior to final development plan presentation; whether a smaller footprint and an additional story would be feasible and more appealing to the neighborhood; and need to reduce impervious coverage.

Further discussion included potential acquisition of the adjoining commercial property on County Road B, and their lack of interest in relocating at this time based on approaches by the developer.

Mr. Wellington advised that discussion was underway for rounding the corner of the building to increase visibility and making it more aesthetically pleasing.

Sonja Simonsen, Wellington Project Manager

Ms. Simonsen reviewed comments received at the neighborhood Open House, and general support of the neighborhood to see the current bank/retail site and drive-thru eliminated.  Ms. Simonsen addressed the use of the parking lot as a buffer to residential neighbors; and potential reduction of traffic with this office use.  Ms. Simonsen noted that the sidewalk would not be reduced in size with location of the building at the proposed location; and that comments and concern of the neighbors had been addressed following that meeting.  Ms. Simonsen advised that, in terms of height and density, the neighbors supported a single-story structure to keep consistent with the neighborhood feel, without blocking their view or trees.

Public Comment

Paul Mergens, 1126 Sandhurst Drive

Mr. Mergens opined that the general comments at the meeting were positive; with some questions raised and adequately answered by the developer; and opined that he was satisfied that this would be a benefit to the community and infringing neighborhood.  Mr. Mergens noted the plans for landscaping to shelter the residential properties, lighting addressed to not reflect in residential windows, and other provisions made by the developer in consideration of comments received.

Dick Houck, 1131 Roselawn

Mr. Houck expressed appreciation that Wellington was interested in this property; however, he opined that zero setback was the biggest mistake ever made, speaking specifically to its use on his corner.  Mr. Houck opined that this situation would be just as bad; and spoke in support of a 10-15’ green space; and some required setback. 

Mayor Klausing spoke in support of the project, particularly in this economic climate.  Mayor Klausing expressed concern with the zero setback for both safety and aesthetics; and suggested approval with the understanding that before receipt of the final PUD, staff and the property owner would address and rectify those concerns.

Councilmember Roe concurred with the need to resolve the corner issue; and noted that there was currently a strip of green between the sidewalk and the building, even though the sidewalk was in the right-of-way.  Councilmember Roe concurred there was also a need to address the public safety issue on that corner; and shared comments expressed at the Planning Commission meeting by Commissioner Gottfried related to relocating the main entrance to the building, while addressing tenant concerns.

Councilmember Ihlan noted the comments of neighbors related to the proposed parking lot, specifically those comments and concerns of the most immediate adjacent neighbor.  Councilmember Ihlan opined that she would prefer to have the collaborative process resolved prior to approval; and questioned the need for that large of a parking lot, suggesting that the building be relocated further north, with additional green space and/or buffering between the development parcel and the residential neighborhood.

Klausing  moved, Johnson seconded, approval of the request for REZONING the parcels at 1126 Sandhurst Drive and 2167 Lexington Avenue to PUD from R-1 and B-3 respectively, as discussed in Sections 4-5 of the project report dated March 23, 2009; noting that the PUD Agreement, if approved in the FINAL phase of the PUD review process, will become the development contract on which the rezoning is based; and approval of the GENERAL CONCEPT PUD for Wellington Management to allow the proposed redevelopment of 1126 Sandhurst Drive and 2167 Lexington Avenue, based on the comments and findings of Sections 4-8 and the conditions of Section 9 of the project report dated March 23, 2009.

Mayor Klausing spoke in support of the project; agreeing that the setback and visibility triangle still needed work; and encouraged as much buffering and green space as possible to make the transition from the neighborhood to business.

Councilmember Johnson spoke in support of the rounded concept, and sought additional setback on the Lexington side with as many aesthetics as possible.

Councilmember Ihlan spoke in support of detailed conditions as discussed to facilitate a collaborative process; opining that approval at this point was premature.

Councilmember Pust expressed appreciation to the developer for their willingness to work on the plan; and opined that the City Council should await those revisions, based on the concerns and needed solutions.

Pust moved, Ihlan seconded, tabling consideration of this request.

Roll Call

Ayes: Pust and Ihlan.

Nays: Johnson; Roe and Klausing.

Motion failed.

City Attorney Scott Anderson suggested that the City Council consider other options, such as requesting that the developer return with a second General Concept Plan, addressing expressed concerns.

Mayor Klausing opined his support for this plan, with some minor tweaking.

Roe moved, Klausing seconded, a motion to add a condition to the approval that the applicant and staff work to address the safety triangle related to the corner of the building on Lexington and County Road B; and to reduce the parking spaces as much as possible.

Roll Call

Ayes: Pust; Roe; and Klausing.

Nays: Johnson and Ihlan.

Motion carried.

                         Roll Call (original motion as amended)

Ayes:  Roe, Klausing

Nays:  Pust, Ihlan, Johnson

Motion Failed

City Attorney Anderson noted that the City Council had not approved the General Concept Plan as presented; and that the City Council wished further revisions; and suggested extension of the review deadline.

Klausing moved, Pust seconded, motion to authorize staff to send written notice to the applicant, extending the sixty-day review deadline.

Roll Call

Ayes: Pust; Ihlan; Johnson; Roe; and Klausing.

Nays: None.

Councilmember Pust noted that the record clearly indicates her support for this project, with proposed and minor revisions.

Mr. Wellington assured Councilmembers that this process and discussion had been productive, and that they would continue their collaborative venture with staff and the neighborhood. Mr. Wellington encouraged a workshop discussion with Councilmembers that could facilitate improved designs and allow for broad community input reflecting those wishes.

Councilmember Johnson opined that this was a great project; and he looked forward to resolution of remaining issues.

Councilmember Ihlan spoke in support of allowing time on a future agenda and non-voting session for public input and Councilmember feedback on the project.

e.                 Consider Non-Compliance Penalty for Centennial Gardens Apartments

Community Development Director Patrick Trudgeon briefly reviewed the additional information provided as previously requested, and detailed in the Request for Council Action dated March 23, 2009.  Mr. Trudgeon noted attachment to the report of three additional informational pieces:

                                            i.                        Actual rent rolls and months of non-compliance

                                           ii.                        Rebate information provided (Attachment H) – number of units affected, frequency and range of over charge

                                         iii.                        Attachment J – number of units to be included or not included for Section 8 – staff’s interpretation; and interpretation of owner excluding Section 8.

Mr. Trudgeon noted that owner representatives were present, along with the City’s Bond Counsel Mary Ippel, with Briggs & Morgan.  Mr. Trudgeon advised that there was no debate as to whether there was a violation, just whether it was substantial enough to mandate the $60,000 penalty as mandated by State Statute, or insubstantial, and suggesting a non-compliance letter finding violations and waiving the penalty, with reimbursement of legal fees as recommended by staff.

Pust moved, Ihlan seconded, authorizing issuance of a non-compliance order to Gardens East Limited Partnership finding the violations substantial and levying a penalty of $60,000 in accordance with Minnesota State Statute, Section 474A.047(3).

Discussion among Councilmembers and Ms. Ippel included whether the Statute provided guidance in determining criteria for measuring substantial natures for non-compliance; impact on residents; length of time for non-compliance; dollar amount of the non-compliance in relationship to the total bond issue; amendment to the Statute in 2001, adding this 20% requirement, without guidance or case law for reference; recognition in the statute of penalizing ongoing and blatant non-compliance; vacant units and their inclusion in compliance; income qualifications; and tax credits issued.

Owner Attorney, Norm Jones

Mr. Jones introduced Mr. Swenson to provide a general perspective of the project to-date and the overall context for discussions.

Mike Swenson, Owner Representative with Partner Terry McNellis

Mr. Swenson provided pictures and a review of the exterior and internal improvements completed to-date for individual units and community areas of the complex; and discussed the owner’s reliance on the advice of Mr. Jones and other consultants for their expertise in addressing tax credit issues.  Mr. Swenson admitted to the human error in those calculations and their immediate correction to those calculations, in addition to refunding monies to tenants as indicated.

Mr. Jones took responsibility for the error; and asked that the City Council consider the merit of this issue, rather than allowing the meeting to become a forum for tenant/landlord complaints.  Mr. Jones noted that, based on past concerns related to communication issues, a tenant advisory committee had been established by the owner to provide a more direct line of communication.  Mr. Jones advised that it was the owner’s intent to preserve affordable housing; and noted that a number of tenant complaints could not be addressed publicly, based on private data of individual tenants.

Mayor Klausing thanked Mr. Jones and Mr. Swenson for their comments to put the overall project in perspective; however, he focused discussions on the statutory scheme related to substantial or insubstantial non-compliance.

Mr. Jones referenced the letter from his firm dated March 16, 2009, laying out the entire year of compliance and lessons learned from that data presented.

Discussion among Councilmembers, staff and the property owner included inability to refund several overcharges due to inability to find former tenants with three such incidents recorded; and clarification of the number of tenants who left following the ownership change at the complex, rent increases and notices to vacate.

Juania Pekay, Consultant for Property Management Company

Ms. Pekay addressed misinformation and inconsistent interpretation of calculations received from the MN Housing Finance Agency related to Fair Market Rents (FMR’s) and tax credit regulations.  Ms. Pekay opined that the amount of time they were out of compliance was only three months; and that as far as displacement, 27 households were indicated.  Ms. Pekay advised that, prior to purchase, the owner had been led to believe that a large number of tenants were income-qualified, but that did not prove true, and that only 16 households actually met low-income qualifications.

Public Comment

Connie Wyland

Ms. Wyland asked if Senator Marty’s letter had been read into the record.

Mayor Klausing confirmed that the letter was included in the Council packet for tonight’s meeting, as well as public copies of the agenda packet.

Mona Langston, Housing Preservation Project, 2004 Hamline Avenue N

Ms. Langston spoke to whether or not the violation warranted being identified as substantial; and alleged that, without notification to the City from the HPP, the miscalculations would have continued without the City’s knowledge or subsequent action.  Ms. Langston encouraged the City to further clarify other inconsistencies in the number of people displaced; rent totals; how many vacant market rate or low-income eligible and unable to remain; how many low-income apartments were vacant; and other information that would help.  Ms. Langston opined that it was important for the City Council not to only consider the dollar amount when considering whether the violation was substantial or not; but to look at the experience of the owner’s attorneys and consultants, and whether there were other facilities being operated that were also out of compliance.

Councilmember Ihlan referenced Senator Marty’s letter and read a portion.  Councilmember Ihlan spoke in support of the motion and opined that the owners had received $12 million in public support through tax exempt bonding, with their promise to preserve affordable housing in Roseville, and further opined that they had failed to do that.  Councilmember Ihlan opined that, based on the owner’s inability to follow the law, and with established guidelines in place and evidence of demonstrated violations, the City Council could do nothing else than enforce that penalty.

Councilmember Roe advised that he had carefully reviewed the situation, and information provided; and had performed his own calculations based on the information and Statutory provisions.  Councilmember Roe’s conclusions were that this law was indeed complicated; but based on his analysis he had come to his own conclusions.  Councilmember Roe assured tenants that he didn’t want to minimize repercussions to tenants; however, he opined that by this action tonight the Council couldn’t punish the developer for things other than being in violation of fair market rents and income eligibility guidelines.  Councilmember Roe detailed his analysis and conclusions, based on Section 8 amounts to consider, the state’s own definition of rent and utilities, whether or not a unit is occupied and consideration of those vacant units in the calculations, and his conclusion that the complex was in compliance 99% of the time, allowing him to conclude that the violation was insubstantial, not allowing him to support the $60,000 penalty.  Councilmember Roe opined that the owner was not blameless.

Councilmember Pust noted that she had provided her opinion, for the record, at the previous meeting’s discussion; and while she didn’t think the error was intentional, from her lawyer’s perspective based on right or wrong, she opined that with 30 families affected, that would indicate a substantial violation.  

Mayor Klausing spoke against the motion; opining that considering the statute language rather than considering the strict liability issue addressed by Councilmember Ihlan, he had come to the same conclusion as Councilmember Roe based on overall impact. 

Councilmember Johnson echoed remarks of Councilmember Roe and Mayor Klausing; while expressing his utmost respect for the tenants and their passionate concerns.  Councilmember Johnson opined that he could not remain cynical enough to consider that every developer found out of compliance was doing so out of malice or through a pre-determined strategy to take advantage of people; and advised that he would be voting against the motion.

Roll Call

Ayes: Pust; Ihlan.

Nays: Johnson; Roe; and Klausing.

Motion failed.

Klausing moved, Roe seconded, authorizing staff to send a non-compliance letter to Gardens East Limited Partnership finding the violations as insubstantial and waiving a penalty to Gardens East Limited Partnership in regard to the Centennial Commons apartment development.

Discussion included the owner’s payment of City legal fees related to this analysis and finding; and Ms. Ippel’s clarification that the original agreements included a clause related to any legal fees to be reimbursed by the developer.

Mr. Jones confirmed that the developer was well aware of the provisions of the original resolution and bond authorization documents; and would meet that obligation for reimbursement of City legal fees.

Roll Call

Ayes: Johnson; Roe; and Klausing.

Nays: Pust; Ihlan.

Motion carried.

f.                   Consider Acquisition of portions of property located at 2690, 2700, 2770 – 2800, a 2814 Cleveland Avenue; 1947 County Road C; 2680 – 2690 Prior Avenue; and 2785 Fairview Avenue, for Road and Construction Purposes

City Attorney Anderson noted that discussion of this issue had been held in Closed Executive Session and that this motion authorized offers as discussed for those specific properties.

Pust moved, Johnson seconded, authorizing staff to proceed, as discussed and at the amounts discussed in Closed Executive Session, for acquisition of portions of property located at 2690, 2700, 2770 – 2800, at 2814 Cleveland Avenue; 1947 County Road C; and 2680 – 2690 Prior Avenue; excluding 2785 Fairview Avenue, for Road and Construction Purposes.

Councilmember Ihlan advised that she was supportive of the motion for the properties, with the exception of 2785 Fairview Avenue; opining that acquisition of that parcel would be expensive, unnecessary and wasteful and would not be in the public’s best interest.

Roll Call

Ayes: Pust; Ihlan; Johnson; Roe; and Klausing.

Nays: None.

Mayor Klausing was preparing to adjourn the meeting at 10:02 p.m., but allowed a resident to speak to the matter.

Dick Houck, 1131 Roselawn

Mr. Houck opined that this was an inappropriate action at an inappropriate time, when taxpayers were losing their retirement incomes, jobs, and experiencing other financial difficulties in this economic situation.  Mr. Houck opined that there was no purpose for this road construction without any developer interest at this time.  Mr. Houck expressed his strong opposition to this action of the City Council.

Councilmembers discussed the total cost of the construction for Phase I of this project; utilization of a DEED grant and TIF funds; including a portion reimbursed by Metropolitan Transit to facilitate the Park and Ride facility.

13.             Business Items – Presentations/Discussions

14.             City Manager Future Agenda Review

15.             Councilmember-Initiated Items for Future Meetings

16.      Adjourn

          The meeting was adjourned at 10:06 pm.