1985-07-09139
July 9, 1985
MINUTES
REGULAR COUNCIL MEETING
JULY 9, 1985
•The City Council of Mound, Hennepin County, Minnesota, met in
regular session on July 9, 1985, at 7:30 P. M. in the Council
Chambers as 5341 Maywood Road, in said City.
.Those present were: Mayor Bob Polston, Councilmembers Phyllis
Jessen, Gary Paulsen, Russ Peterson and Steve Smith. Also
present were: City Manager Jon Elam, City Attorney Jim Larson,
Building Inspector Jan Bertrand, Council Secretary Bonnie Kirtz,
and the following interested citizens: Todd and Kimberly Yilek,
Steve Pringle, Rock Lindlan, John Thorsen, Harlan Bruce, Bob
McClellan, Tim Ashenfelter, Bill & Joyce Clark, Tom Reese,
Houghton Smith.
MINUTES
The Minutes from the June 25, 1985, Regular Council Meeting were
presented for consideration.
MOTION made by Councilmember Peterson, seconded by
Councilmember Jessen to approve the Minutes of the June 25,
1985, Regular Meeting, as submitted. The vote was
unanimously in favor. Motion carried.
REPORT FROM CITY ATTORNEY REGARDING_ CONTINENTAi~HQN
The City Attorney reported that several meetings ago the Council
asked him •to look into the removal of the Continental Phone Co.
He stated there are 3 options the Council can consider:
1. Remove Contel.
2. Replace them with another company.
3. The City can operate and run the phone system.
M.S. 237.16 provides the phone company with a Certificate of
Territorial Authority to service Mound which is issued by the
Public Utilities Commission. This Certificate can be revoked
after a hearing showing the failure of the company to furnish
reasonably adequate service in the area. He further stated that
he did not think w e could prove this, but it is a vehicle.
Option 2 is condemnation and M.S. 237.19 provides the authority
for a m unicipality to own and operate a phone company within its
own borders. It further provides condemnation of the existing
system and the power to rebuild or build a new system.
The Mayor asked the City Attorney if the City condemns Contel, is
it possible for the City to contract with Northwestern Bell? The
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July 9, 1985
City Attorney stated yes, he believed it could because the
Statute provides for condemnation, m unicipal ownership and also
would allow the City to hire an agent to operate the company.
The condemnation and rebuild would require either a general
election or special election with a simple majority needed
approve. If the Council wanted to build a new system, the
election would. require a 65~ majority to approve.
Councilmember Paulsen asked what the PUC considers adequate
service?
The City Attorney stated that he did not think Option ~1, to
revoke the company's Certificate looked like it would work
because- Contel has been meeting the PUC's standards of service.
Councilmember Peterson asked how the City would determine the
value of the Contel system for condemnation? The City Attorney
stated he was not sure if PUC commissioners would be determining
value because under the Condemnation Statute, the Court appoints
commissioners to determine the value. Both sides would present
evidence of what they think the phone company is worth. They
could then appeal the decision or ask the supreme court to hear
the case. The time frame for a condemnation is 180 days under
the Statute and if there were appeals it would not delay the
ownership transfer of the company. The City would have to raise
the issue of the funds necessary to acquire the system thru a
referendum vote.
The City Manager stated that it appears we would have to do the
following:
1. Hold a special election asking the public if they want
to condemn Contel.
2. Start the condemnation and have an appraisal done for
the value of the company.
3. Hold a second special election for the authority to bond
for the purchase of the company.
He stated the City may have second thoughts if the cost to buy
the company outweighs the benefits of not having Contel own the
system.
The City Attorney then handed out the Attorney General's Opinion
on the City of Elbow Lake's condemnation. He stated this makes
it clear that the City of Mound could condemn.
The Mayor stated at this tim a he would like to recognize the
Continental representatives present and asked if they would like
to make a statement. Harlan Bruce stated that the phone company
would like to respond to any problem s people are having and they
want to continue to provide high gaulity service.
The Mayor then opened the meeting up to citizen input.
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July 9, 1985
Steve Pringle, 5021 Woodland Road, stated that he is part of a
committee calling themselves "Telephone Task Force". They have 2
goals:
1. To petition the Council to call for a referendum vote to
retrieve the franchise from Contel thru condemnation.
2. To make it known to the PUC that the citizens of Mound
are not satisfied with Contel and want to stop phone
rates from increasing even as the condemnation proceeds.
Rock Lindlan, 2561 Lakewood Lane, stated he is also a member of
the Task Force. He stated it appears the authority to start
condemnation is in the hands of the City Council and they can
proceed. He further stated that he hoped there would be a
showing that people are disgusted with the high-handed and non-
com passionate methods Contel uses in raising rates. He hopes St.
Bonifacius, Minnetrista and Maple Plain will join the City of
Mound. Condemnation is the dead sure way to keep the rates down
but the City will have to carefully look all the figures over
before it takes over the phone company.
John Thoresen, 5845 Farifield Road, stated that 'he has been
fighting with Contel for sometime over the refund. He also
stated that he blames the PUC in the last refund procedure. He
urged the City to arrive at a fair price for the company and
purchase it without a fight or condemnation. He then asked if a
questionairre had been sent out in the utility bills asking for
feedback from the people. The City Manager stated that only 1/3
of the City is .billed at one time and it would take 4 months to
get the information. He futher explained that a referendum vote
would serve as a way to get this done quickly.
The Mayor stated that he understands the phone company may offer
a rate reduction in the Mound area. Harlan Bruce, Contel Rep.,
stated that they have filed an update with the PUC but he cannot
positively say that it would result in a rate reduction.
The Mayor further stated that he has repeatedly asked Contel w hat
their true cost of service to Mound is and has gotten no
response. Nor has he gotten a response to whether an extended
area service option could reduce rates.
The Contel Rep. stated that the PUC has a freeze on extended area
service at this time.
The Mayor again asked for a cost breakdown of EAS. The City
Attorney stated that Contel has said they do not know what the
cost is.
The Contel Rep stated that you could figure this by taking the
outstate rate minus the metro rate and that would give you the
cost of EAS.
Kim Yilek asked Contel what was so special about their service
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July 9, 1985
that they can charge double what other systems charge? The
Contel Rep. explained that his company bought up Mound as a small
exchange that they consider basically rural (2 customers per
mile) where N.W. Bell has 40 customers per block and this makes
the costs extremely high.
The Mayor stated that this is exactly what the City of Mound is
saying is wrong with Contel's charges. The cable T.V. hookups
are 60 customers per mile so why is Contel charging us for 2
customers/per mile.
The Contel Rep. stated that this is somewhat true, but there are
only 2 rates, the metro and the rural.
Rock Lindlan stated that Tad Jude is sponsoring a meeting on July
15, 1985, of the members of the Senate Public Utilities
Subcommittee and the Hearing Examiner for the PUC will hold a
public hearing on September 12, 1985, regarding Contel. He urged
everyone to attend.
The City Attorney added that the metro class got a ~0% increase
in the EAS rate w here EAS in the rural area was not raised. This
is the refund case that is now in the Supreme Court. He stated
that Contel actually has three rates, metro, non-metro below 1200
and non-metro above 1201. The Metro rate has EAS built in and we
have not been able to tell what the EAS costs are, nor can we get
the information from Contel. Our contention is that you cannot
compare Mound to a non-metro area because EAS is included in the
Mound rates.
NOTION made by Mayor Polston, seconded by Councilmember
Paulsen to hold a public hearing at the first meeting in
August to find out if the public supports the City starting
condemnation proceedings against Contel and at that time the
Staff present an estimated cost for a referendum vote and an
estimated cost of the acquisition, with the intent to have
the Council, at that time, authorize condemnation proceedings
against Contel.
Councilmember Smith asked when we could hold the special
election if it was authorized. The City Attorney stated he
would have to research that.
The vote was unanimously in favor. Motion carried.
BLUE LAGOON MARINA - EDGEWATER DRIVE RESIDENTS
The City Manager explained that several residents of Edgewater
Drive have asked to appear before the Council regarding
violations of Blue Lagoon Marina's Conditional Use Permit.
Todd Yilek, 4861 Edgewater Drive was present and stated that
at a previous last Council Meeting the Council gave a Conditional
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July 9, 1985
Use Permit to Steve Pauly to operate a minor boat repair in the
Downtown area and that one condition was that he was not to use
the Edgewater Drive facility f or trafficing boats or repairs of
boats. He has now violated that condition and the neighbors have
documented the violations.
The Council discussed the violations and the process of dealing
with Mr. Pauly by holding a hearing to give him a chance to
respond to the allegations.
MOTION made by Mayor Polston, seconded by Councilmember
Jessen to hold a hearing at the next meeting to consider
holding a Public Hearing on the revocation of Steve Pauly~s
Conditional Use Permit.
Council member Smith stated that another alternative would be
to have charges filed for each act in violation, with the
residents as witnesses.
The vote on the motion was unanimously in favor. Motion
carried.
MOTION made by Councilmember Smith, seconded by Councilmember
Paulsen instructing the City Prosecutor to investigate .the
charges, interview the witnesses and to initiate misdemeanor
charges against Mr. Steve Pauly, if warranted. The vote was
unanimously in favor. Motion carried.
COMMENTS & SUGGESTIONS FRO CITIZENS PRESENT
The Mayor asked if there were any comments or suggestions from
citizens present.
CHAPMAN PLAC
Tim Ashenfelter, 5573 Bartlett Blvd. stated that he is part
of citizens committee of residents in the area who were
present when Chapman Place was approved and were against the
project. He stated that they have heard that recently 2
changes have been made to the project which are major in
nature. They are, that the 1st floor amenities (full three
story atrium and the commons room) have been removed from the
plan without approval of the City Council. He stated they
feel this is cheapening the project and the neighbors
property values will go down because of it.
The Building Inspector stated that the plans that were
attached to the original resolution ~~84-204 were for a 35
unit building and the Council approved a 29 unit building
which did not have an atrium or commons area.
Mr. Ashenfelter disagreed and stated that it was their
understanding that the building would be exactly as the plans
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July 9 , 1985
showed, with all the same amenities.
The City Attorney stated that the only thing the City can do
by law is assure that the codes are met (building and zoning)
and the density is correct. It cannot force a builder to
build an atrium or commons area or tell them how much money
to put into a structure.
The Mayor suggested that maybe the best way to proceed would
be to have the Engineer, Building Inspector and 2
Councilmembers meet with the neighbors and look at the plans
and the site and get more detailed answers for their
questions.
The following persons echoed Mr. Aschendfelter's statements:
Bob McClellan, Bill Clark, Joyce Clark, Tom Reese, Houghton
Smith, John Thoresen.
The neighbors disagreed with the City Attorney's opinion but
stated they would stil l like to meet with the contractor,
building inspector and Councilmembers to discuss and go over
the problems and get some answers to their questions.
They decided to meet on Thursday evening at the home of
Houghton Smith.
Cj.~NZEL SEWER HOOK-UP AT X809 BARTLETT BLVD.
The City Manager explained that Mr. Ganz el took out a permit to
hookup to the city sewer system in 1965, but never had it done.
For the past 20 years he has had a septic tank at the rear of his
yard. His neighbor, Mr. Fleur el, and he had a disagreement which
resulted in a re-survey of their respective properties. The
result was that the driveway Mr. Ganz el had been using to get the
rear of his property, including his septic tank, is on Mr.
Fleur el's property. We have tried to work out a satisfactory
easement arrangement but the tw o parties will not agree.
MOTION made by Councilmember Peterson, seconded by
Councilmember Smith to authorize the City Attorney to prepare
the necessary paperwork ordering Mr. Ganz el to hook-up to the
sanitary sewer and remove his septic tank from the property.
All costs to be assessed back to the property. The vote was
unanimously in favor. Motion carried.
NOTION made by Councilmember Jensen, seconded by
Councilmember Peterson to renew and authorize the issuance of
the following licenses:
Renew al - On-Sale Beer License - Mound Lanes
(7-1-85 thru 6-3-86)
New Licenses - Cigarette - Blue Lagoon Marina
Restaurant - Blue Lagoon Marina
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July 9, 1985
(balance of the license year)
The vote was unanimously in favor. Motion carried.
The City Manager explained that the LMCD is considering an
amendment to the LMCD Code, intending to provide for the storage
of two boats at noncommercial docks and mooring on the Lake,
rather than four as now permitted. They feel this would
eliminate commercialization of residential property and the
density problem on the Lake. It would not apply to boats 16 feet
or under or boats with motors of 10 H.P. or less.
The Council discussed this issue and the consensus was that they
did not wish to dictate what could be done on private lakeshore
as far as the number of boats was concerned.
No action was taken.
QUOTATIONS ON MICROPHONE SYSTEM FOR COUNCIL CHAMBERS
The City Manager explained that the current microphone system was
installed in 1974 and has been consistently malfunctioning. It
is out of date and not repairable, thus we have solicited
quotations for its replacement and the following were received.
Windward Communications $1,195.00
Alpha Video & Audio $1,790.00
This was not a budgeted item, but it could be taken from Revenue
Sharing.
MOTION made by Mayor Polston, seconded by Councilmember Smith
to approve the quotation of Windward Communications in the
amount of X1,195.00 for the replacement of the audio system
in the Council Chambers. The vote was unanimously in favor.
Notion carried.
AMENDMENT TO ADMINISTRATIVE CODE REGARDING HEALTH INSURANCE FOR
PERMANENT PART-TIME EMPLOYEES
The City Manager explained that Hennepin County has advised the
City that permanent part-time employees are not eligible for
health insurance coverage with the insurance providers unless the
the City contributes toward the coverage. Our Administrative
Code, Section 14.02, says that permanent part-time employees
shall be eligible for hospitalization/major medical insurance
benefits under the group policy at his/her own cost which will be
deducted from the employeets pay. It is being recommended that
this be amended in the Administrative Code to delete the above
and add the following "permanent part-time employees are not
eligible for hospitalization/major medical insurance benefits".
MOTION made by Councilmember Jessen, seconded by
Councilmember Peterson to amend the Administrative Code as
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July 9, 1985
recommended above. The vote was unanimously in favor.
Motion carried.
The City Manager explained that Balboa has now removed all the
items in the Agreement that the City asked to have deleted and it
is now ready to approve.
MOTION made by Councilmember Peterson, seconded by
Councilmember Jessen to authorize the Mayor and the City
Manager to enter into an Agreement, as submitted tonight,
leasing a storage area in the Tonka Building from Balboa
Hinne-rota Co. The vote vas unanimously in favor. Motion
carried.
The City Manager stated that for several years the Downtown
Advisory Committee and the Police Department have tried to
regulate the parking in the Downtown area,to assure that the
parking spots closest to the businesses are not being used for
all day parking. He then showed the Council the Parking Zone Map
that has been developed. The businesses have all seen the Map
and like the ideas. This would also delete a number of items in
Chapter ~6 of the City Code relating to parking and incorporate
the new Map.
Peterson moved and Jessen seconded the following ordinance:
ORDINANCE #~80 ORDINANCE AMENDING CHAPTER 46 OF THE CITY
CODE RELATING TO PARKING
The vote was unanimously in favor. Motion carried.
The Council discussed this problem again and went over the
solution which the City Engineer has estimated will cost $19,000.
The Council discussed the fact that there could have been a
mistake made by someone when the road and storm sewer were put in
in 1978 and decided that the City should contact other engineers
to obtain other estimates and possible remedies for the problem.
The City Manager stated he would check with other engineers and
get back to the Council on this.
No action was taken.
NOTION made by Councilmember Peterson, seconded by
Councilmember Paulsen to set 3uly 23, 1985, at 7:30 P.M. for
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July 9, 1985
public hearings on the following:
A. Amendment to Zoning Ordinance Adding °Planned Industrial
AreaR as a Canditional Use.
and
B. Consider a Conditional Use Permit to Establish a Planned
Industrial Area at 5300/5340 Shoreline Blvd.
The vote Was unanimously in favor. Notion carried.
The bills were presented for consideration.
MOTIOA made by Mayor Polston, seconded by Councilmember
Peterson to approve the payment of bills as presented on the
pre-list, in the amount of $169,940.46, when funds are
available.
The Council asked about the goose problem on lakeshore areas.
The City Manager reported that we now know of a company that
sells plastic swans and they will cost $130.00, plus, shipping
for a family of 5 swans. The Council then added this item to
the bills for approval.
A roll call vote vas unanimously in favor. Motion carried.
MOTION made by Councilmember Paulsen, seconded by
Councilmember Peterson to set August 13, 1985, at 7:30 P.M.
for a public hearing on the proposed vacation of a portion of
Northern Road. The vote was unanimously in favor. Motion
carried.
The City Manager explained that we have HUD money that could be
used to install a jogging trail near Grandview Middle School.
The PTA and the PTO at Grandview made the suggestion and have
agreed to provide the labor to install this on a volunteer basis
so all the City would provide is the rock. We have obtained two
quotations for rock as follows:
1. Byran Rock $2,440.00
2. Mueller Rock $3,420.00
MOTION made by Mayor Polston, seconded by Councilmember
Peterson to approve the quotation of Bryan Rock in the amount
of $2,440.00 for the rock to install a jogging trail. This
to be paid for out of HUD funds for parks. The vote was
unanimously in favor. Motion carried.
A. July calendar
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July 9, 1985
B. Letter and material regarding Fair Labor Standards Act.
C. Letter from DNR regarding geese on lakeshore.
D. Notice of Contel Rate Hearing - September 12, 1985.
E. Letter from Hickok & Associates regarding George Boyer.
F. News clipping regarding EEOC comment on Comparable Worth.
G. HEI news clipping.
H. AMM report on legislative summaries.
I. Letter from Hennepin County Health Dept. regarding Captain
Billyts.
The City Manager explained that the City received a copy of
this letter and there appears to still be violations
according to the Health Dept. Councilmember Jessen,
after reading this letter, suggested this be discussed
tonight because the City issued them a Restaurant License and
could ultimately be held responsible if something should
happen as a result of the Health Dept. violations.
The City Attorney suggested that the Council have the owner
of Captain BillyTs come in and answer the charges of the
Health Dept.
The Mayor suggested directing a letter to the owner asking
him to come in so the City Council can hear his explanations
of why he has not complied with the Health Dept. and strongly
urge him to take care of any health hazards that could
endanger citizens in the interium.
The City Attorney stated that if there are immediate hazards
to the public the Health Dept. can shut the operation down
right away.
The Building Inspector stated that the Health Dept. would
rather leave that up to the City.
The City Attorney explained that for the City to do this
would require a public hearing for the violation of his
Conditional Hse Permit.
MOTION made by Councilmember Jessen, seconded by Mayor
Polston to request the County Health Department to shut down
Captain Billy~s immediately if there are immediate hazards to
the public.
Discussion by the Council on why the Health Department has
not taken any formal action if hazards exist. The Building
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July 9, 1985
Inspector stated that they would rather have the City take
formal action rather than get involved in politics.
Councilmember Peterson suggested that since the letter
not only states, "Comply with all violations IMMEDIATELY",
but also stated, "Compliance will be verified at the next
routine inspection", maybe we should wait until then and if
they have not complied, then agree to shut them down.
Councilmember Smith agreed.
The Mayor withdrew his second, and Councilmember Jessen
withdrew her motion as stated above.
NOTION made by Mayor Polston, seconded by Councilmember
Paulsen to ask the County Health Dept. (Joan Gilchrist), to
inspect Captain Billy's tomorrow and if immediate health
hazards exist, shut the operation down as far as food service
is concerned. The vote was unanimously in favor. Motion
carried.
J. Liquor Store sales report for June.
K. General investment report news story.
L. Wall Street Journal clipping regarding zoning.
M. Action Alert newsletter - LMC.
N. June financial newsletter - Public Financial Systems.
0. Metro Council Review -June 7~+, 1985.
The City Manager reminded the Council of the Boat Tour on July
16, 1985, and the Bus Tour scheduled for July 30, 1985.
Councilmember Paulsen stated that he would not be able to attend
the July 30th function.
NOTION made by Councilmember Jessen, seconded by
Councilmember Paulsen to adjourn at 10:40 P. M. The vote Was
unanimously in favor. Motion carried.
o Elam, City Manager
~'~.~ C ~~
Fran Clark, City Clerk
BILLS------JULY g, 1985
Computer run dated 6/2g/85----Batch 854064
Computer run dated 7/3/85 ----Batch 854065
TOTAL BILLS
135,488.37
29,452.09
164,g4o.46
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