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City Council - 05/15/2018 - Workshop APPROVED MINUTES CITY COUNCIL WORKSHOP & OPEN PODIUM TUESDAY, MAY 15, 2018 CITY CENTER 5:00—6:25 PM, HERITAGE ROOMS 6:30—7:00 PM, COUNCIL CHAMBER CITY COUNCIL: Mayor Nancy Tyra-Lukens, Council Members Brad Aho, Sherry Butcher Wickstrom, Kathy Nelson, and Ron Case CITY STAFF: City Manager Rick Getschow, Police Chief James DeMann, Fire Chief George Esbensen, Public Works Director Robert Ellis, Community Development Director Janet Jeremiah, Parks and Recreation Director Jay Lotthammer, Communications Manager Joyce Lorenz, City Attorney Ric Rosow, and Recorder Katie O'Connor Workshop - Heritage Rooms I and H(5:30) I. ZONING STANDARDS REGARDING SENSITIVE USES (5:30-6:00) City Planner Julie Klima presented on zoning standards for three sensitive uses: pawn shops, adult businesses, and firearms. Research was done on eight local communities for comparison: Plymouth, Minnetonka, Richfield, Maple Grove, Woodbury, Hopkins, Edina, and Chanhassen. Klima stated in regards to pawn shops, the City currently requires licensure, similar to the eight other comparison cities. Most of the comparison communities have a required compliance with zoning ordinance. Minnetonka does not allow pawn shops in residential zones or near properties with liquor licenses. Woodbury and Minnetonka do not allow pawn shops on properties that have unpaid property taxes. Maple Grove is the only community studied that has a distance requirement for pawn shops. Klima stated, in regards to adult businesses, the City does not currently have any regulations. The comparison communities all require a license for adult businesses. Most allow those uses in commercial districts or industrials and some allow in either. Mayor Tyra-Lukens requested a definition of adult businesses. Klima responded there are many definitions such as entertainment, cabaret, body painting, and stores that sells novelty items. The licensing requirements and ordinances for the comparison cities are complex with some including definitions of materials and activities. Six of the eight comparison communities have distance requirements. The majority of those communities require a minimum distance from residential zoning district of at least 200 feet to 1,000 feet. Half of the comparison communities have distance requirements of 500 feet to 1,000 feet from uses such as schools, daycares, and churches. Some of the communities have distance requirements from parks, libraries, or off-sale liquor stores. Council Member Case stated the distance of 500 feet is only the difference of a block. The distance requirement is only accomplishing not having these uses next door. City Council Workshop Minutes May 15, 2018 Page 2 Tyra-Lukens confirmed the City has no zoning or licensing requirements for adult businesses. Klima noted the City Code does not define adult businesses at this point, and the City does not require a license. The business would be categorized under retail. Klima stated state statute governs firearms with the exception of where firearms can be discharged within the City and zoning requirements regulating where a firearms business can be located within the City. The City requires a permit for discharge of firearms with distance requirements. Most of the comparison communities do not have specific zoning regulations. Richfield requires a conditional use permit in commercial and mixed-use zoning districts. Richfield and Chanhassen have distance requirements ranging from 100 feet to 1,000 feet. Klima presented the comparisons of 500 feet and 1,000 feet distance requirements for zoning sensitive uses. These uses would be allowed in commercial and industrial districts and not residential or office districts. Aho noted the current stores in the City, Arnzen Arms and Gander Outdoors, are outside of the 1,000 feet buffer. Scheels will be on the edge of the distance requirement. Klima replied Arnzen Arms and Scheels would be within the protected areas,but Gander Outdoors would be outside the 500 feet or 1,000 feet buffer. Aho inquired if existing stores would be conforming if there was a 500 foot buffer. Klima replied Arnzen Arms would be close to the 500 feet buffer,but Scheels would still be within the protected areas. Nelson inquired if Scheels would be grandfathered in. City Attorney Rosow would need to do more research. There would have to be some consideration given to approvals already granted. Tyra-Lukens inquired how existing retail locations fair in these scenarios. Klima stated there's residential close to Jerry's Foods and Kowalski's, therefore a buffer. Nelson inquired if the distance requirements have to include all three of the uses. Aho noted some cities only have distance requirements for one of these uses. Case added there needs to be further discussion and consideration of the distances. Aho inquired if the City can forbid particular types of adult businesses. Rosow replied the City has to allow all credible businesses. Either distance requirement of 500 feet or 1,000 feet would be seen as sufficient with the amount of areas available for these uses. Nelson inquired if the City has to provide a liquor license to these establishments. Rosow replied the City can have discretion as to who they provide a liquor license to. Tyra-Lukens would like information from more than eight cities, specifically Burnsville and Bloomington. Case asked if the City is legally vulnerable if an application is submitted for a business before a decision is made. Rosow stated yes, they would be allowed without zoning requirements in place unless there was a moratorium on these uses. Case inquired if the Council can pass a moratorium on these types of businesses for one year to allow for more time to research. Rosow stated the rationale for the moratorium is to conduct a study to gain more insight. Nelson noted she would like a study to know the effects it may or may not have on surrounding businesses. City Council Workshop Minutes May 15, 2018 Page 3 II. COMPREHENSIVE ANNUAL FINANCIAL REPORT AND AUDIT (6:00-6:30) Chris Kopek and John Lorenzini, CliftonLarsonAllen Auditors, presented a brief overview of the unmodified, clean opinion of the audit. There were no findings of weaknesses in the internal controls, and the City complied with applicable Minnesota state statutes. Lorenzini stated the City's revenues were less than one percent over budget, expenditures were 0.2 percent over budget, and there was an $872,000 decrease in fund balance for 2017 due to debt paid off early. Finance Manager Kotchevar noted the City saved $340,000 in interest for early pay off and about$24,000 in fees. The City will replenish the general fund. Lorenzini stated in regards to fund balance, 50 percent of the following years budget in tax revenue is to be maintained. There were no budgeted deficits for 2018. General fund expenditures were up 3.4 percent in 2017 compared to 2016. Lorenzini stated the water fund operating income was up about$1 million from 2016. The wastewater fund operating income was up $590,000 from 2016. Cash flow was $165,000 in 2017. The stormwater fund operating income increased by $262,000, with a 12 percent rate increase in 2017. Operating expenses were up about 68 percent due to two major sewer repairs. Kopek stated the liquor fund gross sales decreased by 1.8 percent,but it still remains profitable with an increase in profits slightly under five percent from 2016. The City has been consistently above the seven county metro in profits. Kopek stated estimated market values have exceeded what they were prior to the 2008 recession. The City continues to have a lower tax rate than surrounding cities. Lorenzini stated per capita revenues increased $99 from 2016, primarily due to intergovernmental revenue. Intergovernmental revenue can fluctuate based on grants the City receives. Overall the City has fewer per capita expenditures compared to cities of similar size. The City continues to retain its Aaa bond rating. Open Podium - Council Chamber (6:30) II. OPEN PODIUM A. ROB ROZANSKI Rob Rozanski, 19186 Poplar Circle, stated the odds are higher to die by car accident than by a gun in school. The resolution attempts to strong arm people doing legitimate business in the City and it infringes on citizens' rights. B. PAUL LENTSCH Paul Lentsch, 16700 Thatcher Road, stated statistics have shown a decline of violent crime nationwide. Assault weapons operate in the same manner as other guns. He urges the Council to not pass this resolution. City Council Workshop Minutes May 15, 2018 Page 4 C. DAVID KANE David Kane, 11185 Anderson Lakes Parkway, urges the Council to not support this resolution. He stated the City of Eden Prairie does not have the authority to enforce the resolution, and the age limit included in the resolution is discrimination. D. RONALD WHITMAN Ronald Whitman, 6617 Harlan Drive, stated City Council cannot pass an ordinance that supersedes state law. In his opinion, the definition used for an assault-style weapon is skewed. E. KEVIN VICK Kevin Vick, 18832 East Lake Drive Chanhassen, stated the resolution restricts citizens who can legally vote and asks businesses to go outside the law by not selling guns to people ages 18 through 20. Death by assault rifles are less common than by blunt force trauma with a knife. III. ADJOURNMENT