HomeMy WebLinkAbout08-01-2022 City Council Work Session Minutes
CITY COUNCIL WORK SESSION
Mayor
Amáda Márquez Simula
Councilmembers
John Murzyn, Jr.
Connie Buesgens
Nick Novitsky
Kt Jacobs
City Manager
Kelli Bourgeois
City Hall—Council Chambers, 590 40th Ave NE
Monday, August 01, 2022
6:00 PM
MINUTES
The following are the minutes for the Work Session Meeting of the City Council held at 6:00 pm on
Monday, August 1, 2022, in City Council Chambers, 590 40th Avenue NE, Columbia Heights, Minnesota.
CALL TO ORDER/ROLL CALL
Mayor Márquez Simula called the meeting to order at 6:00 pm.
Present: Mayor Márquez Simula; Councilmember Buesgens; Councilmember Jacobs; Councilmember
Murzyn, Jr; Councilmember Novitsky
Also Present: Kelli Bourgeois, City Manager; Aaron Chirpich, Commun ity Development Director;
Mitchell Forney, Community Development Coordinator; Kevin Hansen, Public Works Director; Sara Ion,
City Clerk/Council Secretary; Keith Windschitl, Recreation Director
WORK SESSION ITEMS
1. Review of John P. Murzyn Hall Rental Rates and Policy Updates
Manager Bourgeois said there have been issues with rentals at Murzyn Hall that Staff has
been discussing and also there are many improvements that need to be made. The Parks
and Recreation Committee met the week prior and have made the following four
recommendations to the Council:
1. All rentals of 50 or more people must use the Lions Club for Bar Service (current policy is
over 200 people must use the Lions Bar).
2. Increase damage deposit from $500 to $800.
3. Renters lose all damage deposit if attendance is 50 or more people over the disclosed
amount.
4. Rental Rates – Have a weekend rate for Fridays, Saturdays, and Sundays. Have a
weekday rate for Mondays – Thursdays. Residents will still receive a 25% discount on
rentals. The rental rates are proposed to be a significant increase from current rates; Fri –
Sun $2,824.61 w/tax $3,025.86 and Mon – Thurs $1,731.48 w/tax $1,854.85; Nonprofit
Entry Fee $70, Nonprofit Nonresident Hourly Rate $60, Nonprofit Resident Hourly Rate
$30; tax, if applicable, on all Nonprofit Rates.
Mayor Márquez Simula stated she believed the proposed rates made sense and with the
review of Staff wages.
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Councilmember Buesgens said she was the liaison to the Parks and Recreation Committee,
and it was proposed to do 100% increase to cover the costs; they brought forward 50% but
there is some room for the Council to decide.
Parks and Recreation Director Keith Windschitl stated the 50% would cover costs and they
would make a small profit.
Councilmember Buesgens asked if the additional money could be used to make upgrades
until they decide what to do with the facility. Windschitl concurred that it would.
Councilmember Novitsky asked if the upgrades to tables and chairs, etc. would take pla ce
immediately to help justify the rate. Manager Bourgeois stated that the new rates would
only apply to a new reservations once the fee schedule is approved so there would be a
gap in where there wouldn’t be additional income coming in.
Councilmember Murzyn Jr. asked when the new fees would be effective. Manager
Bourgeois clarified that it would be for any new reservations and the new fees will be on
the agenda for the Council the next week.
Manager Bourgeois thanked the Parks and Recreation Staff for their research and stated
that the City is different from neighboring cities in that they have a full kitchen and they
don’t require a designated caterer which makes a difference in the fee structure and
liability for the City.
2. Parks Capital Discussion
Public Works Director Kevin Hansen stated that the Parks and Recreation Commission has
been updating the parks CIP over the last three years, which was last updated in 2019. Staff
has updated the CIP due to cost increases and because the past funding mechanisms for
the City are non-existent at this point for completing the City’s park system, either
rehabilitation or redevelopment.
He said that several parks have been rehabilitated and there is about half left to complete;
the total for all of the current CIP items is about 8 million dollars. Director Hansen stated
that the Council needs to discuss how to fund these improvements and if they would like
to move forward it is recommended to have an outside source review the CIP, and then
have the financial consultant look at bond funding. He added the feedback from the City
survey, parks was one area that the community supported.
Councilmember Buesgens asked if the CIP list is flexible to possibly consider other
amenities if they aren’t being used; she has heard in the community that there are a lot of
baseball fields. Director Hansen stated that park planning has been done on a park -by-park
basis where outreach is made to the community about what they would like to see.
Councilmember Buesgens asked if with the small “pocket” parks if there would be able to
be some input from the community. Director Hansen stated that if the funding was
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authorized by the Council, then there would be community engagement done for each
park.
Mayor Márquez Simula asked what the Master Plan referred to. Director Hansen stated
that it’s the starting point, it defines how often the parks should be updated, and where
Staff looks at what is at each park and what is used. He added that the community
expressed interest in having walking trails which get incorporated into the Master Plan. All
these things create a Master Plan which helps to create a construction document for bids.
Mayor Márquez Simula said it is important to look at the parks as a whole as there has
been some discussions around the connection between the parks with walking trails.
Director Hansen stated it is the goal to create some of these.
Councilmember Buesgens asked if a park planning architect can look at it instead of an
engineer. Director Hansen stated that is who would look at it.
3. Solid Waste Contract Discussion
Director Hansen stated that he and Manager Bourgeois met with Walters and went
through the bid, but Walters cannot currently find drivers. He said that Walters had tried to
do recruiting but they feel they do not have internal capacity to serve the City currently. He
added that they will go out to look at other vendors and at providing the service internally.
Councilmember Jacobs asked if the service is provided by the City if additional employees
will need to be hired. Director Hansen stated that they would need to look at hiring
additional Staff, which services they would want to provide, and having the equipment to
do it.
Councilmember Buesgens stated it may be difficult to find the people to do that.
Councilmember Jacobs added that is the next obstacle. Director Hansen said that is
unknown and they will update the Council as more work is done.
Councilmember Novitsky asked about going back to allowing residents to choose their
hauler. Director Hansen stated that the open market is something to consider but there are
still capacity issues because they don’t have people to fill the open positions, regardless of
the number of vendors.
Councilmember Novitsky asked when the contract with Waste Management ends. Director
Hansen stated it is January 1, 2023.
4. Discussion of Response to Edible Cannabinoid Legalization
Coordinator Forney reported that towards the end of the 2022 legislative session, the State
passed a law amending state statute which legalized the sale of edible cannabinoids
derived from hemp. On July 1, 2022, this law came into effect and has garnered a
significant amount of attention. Very little regulation and oversight has been established
with the amendment of state statute. This has left many local and state government
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agencies scrambling to address and implement procedural changes prompted by the n ew
law. The League of MN Cities has published guidance in the form of a frequently asked
questions page and continues to work on understanding how the new statute effects cities.
A few cities have adopted interim and emergency ordinances to place a morator ium on the
sale of these newly legalized items. With regard to the City, Staff would like to present the
facts and receive guidance on how the Council would like to respond to the new law.
The law in question amends MN state statute chapter 151.72 subd.1 -6 and chapter 152.02
in order to legalize the sale and production of edible cannabinoid products. Products
defined in the amendment are not considered controlled substances and have been
removed from the schedule 1 drug classification under state law. These products must
meet a variety of requirements but most importantly they cannot contain more than 0.3
percent of any tetrahydrocannabinol (THC), and must not contain more than five
milligrams of any tetrahydrocannabinol in a single serving, and no more than a total of 50
milligrams of any tetrahydrocannabinol per package.
The new law establishes a variety of testing procedures and labeling requirements with
regards to the allowed amount of THC and prescribed packaging. The included document,
Appendix A, summarizes these and other relevant regulations outlined in the new state
law. Under the new law, enforcement of the state regulations falls on the Minnesota Board
of Pharmacy. It is important to note that the regulations in Appendix A are not proactively
enforced. Packaging and laboratory reports are not required to be submitted to the board
but are only required if the Board of Pharmacy requests them. The Minnesota Board of
Pharmacy is not proactively requesting them but will review the testing if it rece ives a
complaint. Due to the ambiguous nature of the State Statute, there are a lot of questions
at all levels regarding the ongoing enforcement of the new regulations.
The state law in question caught a lot of people by surprise to include the majority of
Minnesota cities. As of July 27, 2022, five cities have crafted and considered responses to
the new state law. While four have enacted emergency or interim ordinances placing
moratoriums on the sale and production of edible cannabinoids. The City of Stillwater
foresaw the legalization of THC in some form and in 2021 prohibited, “the establishment of
new uses or the expansion of existing uses related to cannabis and nonintoxicating
cannabinoids (CBD) sales, testing, manufacturing, or distribution.” While cities such as
Saint Joseph and Robbinsdale only recently enacted their moratoriums. The sample
ordinance and accompanying research have been established through the revie w of other
cities actions and recommendations from the City Attorney.
As part of the discussion of how the City should respond to the new state law, Staff has
created a draft moratorium similar to those recently adopted by other cities. With or
without a moratorium there are quite a few questions the City will face in regards to the
production and sale of hemp derived tetrahydrocannabinol (THC) food and beverages.
Included as an attachment is a compilation of some of the questions the City faces. While
all these questions may not be answered at this meeting it is important to begin the
discussion of these items.
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Included for review is draft ordinance 1679. This ordinance would establish a moratorium
on the expansion of sales and manufacturing of hemp derived THC food and beverages.
State Statute 462.355 regulates the application and use of interim ordinances by the City.
To ensure compliance with Statute 462.355, the draft ordinance clearly outlines the goals
and purpose for the prohibition of hemp derived THC food and beverages. As stated in the
preamble, the purpose of the moratorium is to limit the expansion of these sales until the
City can study, discuss, and craft a response to the new law.
A well-rounded response will include changes to the code of ordinances in the form of
zoning, licensing, enforcement, and other related processes and procedures. Under draft
Ordinance 1679, businesses that are selling or producing hemp derived THC foods and
beverages, prior to the passage of the ordinance, will still be allowed to do so during the
moratorium. This draft ordinance does nothing to effect legal medicinal CBD operations.
Staff recommends moving forward with the establishment of a temporary moratorium on
the discussed items. As shown in the compilation of questions, there are a lot of unknowns
that need to be addressed by the City. Establishing a moratorium will also offer the City the
opportunity to work with the League of MN Cities in clarifying the City’s role.
Mayor Márquez Simula asked what the time of the interim moratorium would be and if it
could be expanded. Coordinator Forney stated the State allows a moratorium to be in
place for 12 months, they City can extend it if needed.
Councilmember Jacobs asked if there are any businesses that would be affected by this or
want to proceed in that direction. Coordinator Forney stated he is aware of one business.
Councilmember Jacobs stated she is concerned about where they can sell and would like
the Council to move forward with the moratorium.
Councilmember Buesgens stated she understood the need for the City to get things
together but said it states that it is “non-intoxicating” and it is a lot of work to control a
product like that.
Councilmember Jacobs stated that she believes it is misleading to say it is “non-
intoxicating” and she spoke in regard to her experience working in substance abuse and
brain development expanding into the 30s.
Mayor Márquez Simula asked if an expert in regard to Cannabinoid would be included in
the discussion.
Manager Bourgeois said that Staff was caught off guard by the change and they are not
looking to limit THC products, but they need time to research this topic. She said that there
would be a workgroup established to come up with the regulations and doesn’t expect it to
take the full year.
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Councilmember Novitsky stated that some stores have been selling “questionable”
products such as Delta 9, which has never brought up. He said he isn’t for a moratorium on
this.
Councilmember Buesgens said she would be for moratorium to give Staff time.
Mayor Márquez Simula stated she isn’t sure how she feels about it and worries that a year
would be too long to look into it.
Councilmember Murzyn Jr. said he feels the same as Mayor Márquez Simula and would like
more information to decide which way to go.
Mayor Márquez Simula said it would be nice to know the risks if there is no moratorium.
Manager Bourgeois stated this item will be on the agenda at the next meeting and there
will be additional information presented. She added this is a food item that could be sold
out of a food truck, for example.
Councilmember Buesgens asked if the City would be involved if there is a sale above the
allowed level of THC. Manager Bourgeois said she isn’t sure who will investigate if there is a
concern.
Mayor Márquez Simula asked if the City is more concerned about the zoning. Manager
Bourgeois stated that it would be allowed in the business district, there is no product
regulation.
Councilmember Buesgens spoke regarding the “non-intoxicating” again and said she is
okay with the moratorium.
Director Chirpich said that tobacco shops are limited, and the number of licenses is
controlled. He said that compliance checks are done on tobacco and these are currently
not in place.
Councilmember Buesgens stated there is concern with children getting ahold of these
products and there needs to be a way to limit to those over 21 years old.
Councilmember Jacobs said she isn’t opposed to these shops just how they will operate
within the community.
Mayor Márquez Simula asked if the Council could reach out to the business that is selling
the product. Director Chirpich said that he couldn’t speak on behalf of the City Attorney
but that the input would be valuable.
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5. Discussion and Update on Establishing a Single-Family Rental Moratorium
Coordinator Forney stated that during the July 5, 2022, work session, the Council discussed
the viability of establishing a rental licensing moratorium on all single-family homes. This
discussion came about after Staff presented a plan to create a single-family rental density
cap. Establishing a cap requires a multitude of process changes along with a study of the
City’s current rental housing stock. These items are estimated to take up to a year to
complete.
The Council originally began the rental density cap discussion after bringing up concerns
regarding single-family home conversions to rental properties. Most of all, the Council
expressed concern that it has become increasingly difficult for potential hom e buyers
wishing to purchase property in the City to identify financially attainable options. Many
such options are quickly purchased by remote corporate entities or landlords and
converted to rental properties. Further, the City is concerned that the over all number of
rental properties in the City has increased at an unsustainable rate. In addition, the City is
aware of possible shortcomings within City Code relating to provisions governing rental
licenses and property maintenance and would like to be more proactive in securing
compliance for the health, safety, and welfare of City residents generally.
To establish an interim ordinance, State statute requires the City to establish clear goals
and a plan of action. This is presented in the sample ordinance as a set of studies that will
assist the City in reaching its goals. The interim ordinance can be put in place for 12 months
or until the following goals have been completed and any resulting changes to the City’s
ordinances have been made: 1) Staff will determine the current makeup and status of the
rental housing stock within the City 2) Staff shall determine the effect and feasibility of
creating a rental density cap on single family residences 3) Staff will consider whether the
City has sufficient staffing and resources to enforce the rental density cap.
A sample interim ordinance was included. The establishment of the moratorium affects the
receipt, processing, or approval of any new rental license for a single -family residential
structure. It does not include such residences as townhomes, duplex’s, apartments,
cooperatives, or condominiums. Applications for the renewal of existing rental licenses are
exempt, and any complete license submitted before the enaction of the ordinance will
continue with the normal process. Any application submitted and received prior to the
passage of the ordinance but deemed incomplete by the City, shall be returned to the
applicant, along with the application fee, and if not resubmitted before the passage of the
ordinance, no resubmission of such application shall be accepted during the moratorium.
Councilmember Buesgens asked about when a rental is sold and how that would affect
that license. Forney said that when a house is sold they have 30 days to renew the license,
if they do not, then the rental license lapsed, and they have to start the process over.
6. Liquor Store Rezoning Overview
Director Chirpich stated that the City has initiated the rezoning of its three municipal liquor
store sites from General Business (GB) to Public and Open Space (PO). Specifically, the
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rezoning of the following properties is proposed: Top Valu Liquor Store #1 located at 4950
Central Avenue NE, Top Valu Liquor Store #2 located at 2107 37th Avenue NE, and Top
Valu Liquor Store #3 located at 5225 & 5233 University Avenue NE.
The intent of the rezoning request is to apply zoning designations to the three liquor store
sites which reflect their ongoing “public use.” The PO District specifically references
“publicly owned and operated facilities” as a permitted use. To be noted is that the City’s
parks, and other municipal building sites (including city hall, library and public works
building) were similarly rezoned to PO in 2008.
Beyond the practical rational to bring all publicly owned and operated facilities into the PO
District, the rezoning of these properties is also prompted by the desire for Top Valu Liquor
Store #3 to install a dynamic LED sign on the existing pylon sign located on the site. While
independent of the rezoning action, the proposed rezoning would result in a change to the
dynamic LED sign requirements for Liquor Store #3. As mentioned, the current zoning
classification for all municipal liquor stores is GB. Within the GB District, dynamic LED signs
are permitted as a conditional use on monument signs only. In contrast, dynamic LED signs
located within the PO District are allowed to be placed on pylon signs. Therefore, the
proposed rezoning would allow Liquor Store #3 to install a dynamic LED sign on its current
pylon sign. City Code provides more flexibility for dynamic LED signs on public sites because
such signage can be used to convey messages of general importance related to city
messaging rather than simply advertising.
Mayor Márquez Simula asked if the image in the packet was the proposed sign. Chirpich
concurred and stated that the City recently acquired the Heartland Tire building adjacent
to the liquor store, and the City plans to expand in that area.
Mayor Márquez Simula asked if the pylon could have more than just business advertising.
Chirpich stated this is correct.
Councilmember Novitsky asked if the other liquor stores ever advertise other messages.
Manager Bourgeois stated that they have.
7. Charter Commission: Amendment to City Charter City Council Vacancies (Chapter 2
Section 9)
Clerk Ion reported that on July 21, 2022, the Charter Commission held a seconding reading
of the proposed amendment to the City Charter, Chapter 2 Section 9. The Charter
Commission has recommended that the Council amend the Charter by Ordinance. She said
that the Charter Commission would like to reduce the time for appointment from 105 days
to 45 days and allow for the Mayor to break a tie if one occurs.
Councilmember Buesgens asked if this will come before the Council twice for public
hearings. Ion stated this is the case; she further added that the first hearing will be
September 12, 2022, and the second hearing will be September 26, 2022.
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Councilmember Novitsky asked if this will require a 5-0 vote. Ion stated that is correct.
Councilmember Buesgens asked that if it did not receive a 5-0 vote from Council, what the
process would be for it to be on the ballot for a vote from the community. Ion stated it
would go back to the Charter Commission and she would need to review the specifics of
the process if that was the case.
Councilmember Jacobs stated she remembered it going back to the Charter.
Councilmember Buesgens expressed concern about the timeline of the vote and if the item
would need to be on the ballot. Ion said she would look into the timeline.
ADJOURNMENT
Mayor Márquez Simula adjourned the meeting at 7:12 pm.
Respectfully Submitted,
______________________________________
Sara Ion, City Clerk/Council Secretary