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04/06/1998 - 00001102THE MINUTES OF THE REGULAR MEETING OF THE FRIDLEY CITY COUNCIL OF APRIL 6, 1998 The Regular Meeting of the Fridley City Council was called to order by Mayor Jorgenson at 7:32 p.m. PLEDGE OF ALLEGIANCE: Mayor Jorgenson led the Council and audience in the Pledge of Allegiance to the Flag. ROLL CALL: MEMBERS PRESENT: Mayor Jorgenson, Councilman Barnette, Councilman Billings, Councilman Schneider and Councilwoman Bolkcom MENIBERS ABSENT: None PROCLAMATIONS: LOYALTY DAY: This item was removed from the agenda. DAYS OF REMEMBRANCE OF THE HOLOCAUST: April 19 - 26, 1998: Mayor Jorgenson read the Proclamation of the Days of Remembrance of the Victims of the Holocaust. APPROVAL OF MINUTES: COLJNCIL MEETING - MARCH 16_ 1998: MOTION by Councilman Barnette to approve the minutes of the March 16, 1998 City Council Meeting as presented in writing. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor 7orgenson declared the motion carried unanimously. APPROVAL OF PROPOSED CONSENT AGENDA: OLD BUSINESS: 1. ORDINANCE NO. 1115 DECLARING CERTAIN REAL ESTATE TO BE SURPLUS AND AUTHORIZING THE SALE THEREOF FOR THE TH65/CENTRAL AVENUE/LAKE POINTE DRIVE: Mr. Burns, City Manager, explained that surplus property is defined as former highway right-of-way that lays between Highway 65 and the Fridley Executive Center site. It is to be conveyed to the HRA and is to become part of the Fridley Executive Center site. CITY COUNCIL MEETING OF APRIL 6, 1998 PAGE 2 WAIVED THE SECOND READING AND APPROVED ORDINANCE NO. 1115 ON THE SECOND READING AND ORDERED PUBLICATION. NEW BUSINESS: 2. RESOLUTION NO. 21-1998 AUTHORIZING ACCESS AND USE OF RIGHT-OF-WAY FOR THE TH65/CENTRAL AVENUE/LAKE POINTE DRIVE INTERSECTION IMPROVEMENT AND REPEALING RESOLUTION NO. 16-1998: Mr. Burns, City Manager, explained that this resolution repeals and replaces a resolution that was approved at the March 16 City Council meeting. MnDOT requests that the right-of-way dedication not be tied to a future plat, as it was in the former resolution. This resolution authorizes the use of former highway right- of-way for use in constructing the Lake Pointe intersection improvements. Since the last meeting, it has been determined that two areas of overlap between this parcel and the preceding parcel are to be part of the right-of-way parcel. These areas have been defined and included in the right-of-way parcel. ADOPTED RESOLUTION NO. 21-1998. 3. RECEIVE THE MINUTES OF THE PLANNING COMMISSION MEETING OF MARCH 18, 1998: RECEIVED THE MINUTES OF THE PLANNING COMMISSION MEETING OF MARCH 18, 1998. 4. APPROVE TRANSFER OF EASEMENT FROM THE CITY OF FRIDLEY TO THE COUNTY OF ANOKA, GENERALLY LOCATED AT 8100 EAST RIVER ROAD N.E. (WARD 3): Mr. Burns, City Manager, explained that the County is requesting that Fridley transfer a 17 foot wide strip of easement property that runs north and south in front of the Texaco Station at 8100 East River Road to them for use in improving East River Road. Since the conveyance will not pose any issues for our Public Works Department, staff recommends approval of the transfer. APPROVED THE TRANSFER OF AN EASEMENT FROM THE CITY OF FRIDLEY TO THE COUNTY OF ANOKA, GENERALLY LOCATED AT 8100 EAST RIVER ROAD, N.E. CITY COUNCIL MEETING OF APRIL 6, 1998 PAGE 3 5. RESOLUTION NO. 22-1998 APPROVING A VACATION SAV #98-01, GENERALLY LOCATED AT 6525 UNIVERSITY AVENUE N.E.: Mr. Burns, City Manager, stated that Semper Development (Walgreen's) is requesting the vacation of a 5 foot by 300 foot drainage and utility easement that runs through the middle of their redevelopment site from east to west. Since the easement is no longer of use to the City or NSP, staff is recommending approval. APPROVED RESOLUTION NO. 22-1998. 6. VARIANCE, VAR #98-04, BY KIM MILLER OF MILLER FUNERAL HOME, TO REDUCE THE FRONT YARD SETBACK FROM 80 FEET TO 37 FEET TO ALLOW THE CONSTRUCTION OF AN ADDITION ALONG THE SOUTH SIDE OF THE PROPERTY, GENERALLY LOCATED AT 6210 HIGHWAY 65 (WARD 2): Mr. Burns, City Manager, explained that the setback reduction is from 80 feet to 37 feet to allow a 6 foot by 34 foot addition to the south side of the funeral home. This same variance was approved by Council in 1996 but allowed to lapse. The setback reduction is consistent with the reduction for the e�sting building. The Appeals Commission has given their unanimous consent to the re-approval with the stipulation that the petitioner grant a 10 foot easement adjacent to the e�sting drainage easement. The new easement would allow access to the City's sewage lift station. Staff recommends Council's approval with the one stipulation. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA FOLLOWING ITEM 20 UNDER OLD BUSINESS. 7. APPROVE 1998 YARD WASTE TRANSFER SERVICE CONTRACT BETWEEN THE CITY OF FRIDLEY AND MORRELL & MORRELL, INC.: Mr. Burns, City Manager, stated that the proposed contract is with Morrell & Morrell, Inc. The cost of service is proposed at $120 per 75.85 cubic yard roll-off bin. Although the price is nine percent higher than the 1997 cost for these services, it should be recognized that the vendor has not requested an increase for the past three years. Staff recommends Council's approval. APPROVED THE 1998 YARD WASTE TRANSFER SERVICE CONTRACT BETWEEN THE CITY OF FRIDLEY AND MORRELL & MORRELL. CITY COUNCIL MEETING OF APRIL 6, 1998 PAGE 4 8. APPROVE LETTER CONTRACT BETWEEN THE CITY OF FRIDLEY AND BRAUN INTERTEC FOR LABORATORY SERVICES FOR THE SPRINGBROOK CLEAN WATER PARTNERSHIP GRANT PROJECT (WARD 3): Mr. Burns, City Manager, explained that this contract is for lab services associated with the Springbrook Nature Center Clean Water Partnership Grant Program. The cost is for an amount not to exceed $10,500 and will be paid for from grant proceeds. Since Braun Intertec provided the low quote, staff is recommending their selection. APPROVED LETTER CONTRACT BETWEEN THE CITY OF FRIDLEY AND BRAUN INTERTEC FOR LABORATORY SERVICES FOR THE SPRINGBROOK CLEAN WATER PARTNERSHIP GRANT PROJECT (WARD 3). 9. APPROVE SUPPLEMENTAL AGREEMENT TO THE 57TH AVENUE RECONSTRUCTION PROJECT AGREEMENT BETWEEN THE CITY OF FRIDLEY AND BRW: Mr. Burns, City Manager, stated that when the City initiated the design agreement with BRW the estimated cost of the 57th Avenue Project was $400,000. With the addition of landscaping, lighting and other improvements, the estimated cost is now over $800,000. With the increase, BRW has submitted a change order to cover the additional cost of their design work This change order moves engineering costs for the project from $59,160 to $149,240. Actual engineering costs will be adjusted to reflect actual construction costs. Staff recommends approval of these changes as contained in a supplemental agreement to the BRW contract. THIS TIME WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR COUNCIL AGENDA FOLLOWING ITEM 20 UNDER OLD BUSINESS. 10. RESOLUTION NO. 23-1198 APPROVING FINAL PLANS AND AUTHORIZING ADVERTISEMENT FOR BIDS FOR THE 57TH AVENUE IMPROVEMENT PROJECT NO. ST 1997 - 4: Mr. Burns, City Manager, explained that the plans and specifications for the project have been completed. Anoka County has conducted their review, and their proposed changes have been incorporated into the plan. Staff is waiting for the completion of MnDOT's review; and it is expected to be completed shortly. Staff has also met with the neighborhood and addressed concerns raised by two property owners. In order to expedite a spring award, staff is asking Council to approve plans and specifications and to authorize staffto bid the project. CITY COUNCIL MEETING OF APRIL 6, 1998 PAGE 5 ADOPTED RESULUTION NO. 23-1998. 11. AUTHORIZE ADDITIONAL FUNDING FOR THE SCADA SYSTEM UPGRADE ITEMS: Mr. Burns, City Manager, explained that staff is requesting funding for the upgrading of the programmable logic controller (PLC), the main processing component for the computer system that is used to control the operation of the City's water, sewer and storm water systems. The cost for this item is $10,266. Although it is not budgeted, the cost is more than offset by savings in other capital improvement items. Additionally, staff is asking Council's approval for expenditure of funds to cover higher than expected bids for linking SCADA to the Mississippi Street storm water lift station. The amount of the overage, $3,542, may also be covered from savings on other projects. AUTHORIZED ADDITIONAL FUNDING FOR SCADA SYSTEM UPGRADES FOR THE CITY'S WATER AND STORM WATER SYSTEMS. 12. APPROVE SITE LEASE AGREEMENT BETWEEN THE CITY OF FRIDLEY AND U.S. WEST WIRELESS, L.L.C.: Mr. Burns, City Manager, explained that this agreement allows U. S. WEST to place nine antennas on the City's Highway 65 water tower. The agreement is consistent with the previous agreement with APT Telecommunications. If approved, the agreement will generate an annual fee of $12,360. APPROVED SITE LEASE AGREEMENT BETWEEN THE CITY OF FRIDLEY AND U.S. WEST WIRELESS, L.L.C. 13. RESOLUTION NO. 24-1998 IN SUPPORT OF AN APPLICATION FOR A MINNESOTA LAWFUL GAMBLING PREMISE PERMIT TO KNIGHTS OF COLUMBUS COUNCIL 4381 FRIDLEY (KNIGHTS OF COLUMBUS COUNCIL 4381, 5831 HIGHWAY 65 N.E.)(WARD 2): Mr. Burns, City Manager, stated that this is a renewal of a permit for a pull tab operation at the Knights of Columbus Hall on Highway 65. Staff has determined that there is no reason not to grant the renewal and recommends Council approval. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR COUNCIL AGENDA FOR CONSIDERATION ALONG WITH ITEMS 21 AND 22 UNDER NEW BUSINESS. CITY COUNCIL MEETING OF APRIL 6, 1998 PAGE 6 14. APPROVE PAYMENT OF $2,750 TO THE SOUTHERN ANOKA COUNTY COMMUNITY CONSORTIUM: Mr. Burns, City Manager, stated that along with approval of their 1998 budget, SACCC determined that it was once again necessary to assess its member jurisdictions. The proposed assessment for Fridley is $2,700. Although the amount is not budgeted, staff recommends that it be covered from our emergency reserve. APPROVED THE PAYMENT OF $2,750 TO THE SOUTHERN ANOKA COUNTY COMMUNITY CONSORTIUM. 15. APPOINTMENT: CITY EMPLOYEE: Mr. Burns, City Manager, stated that staff is recommending the appointment of 7ulianne Tostenson as Secretary in the Community Development Department. Julie is a Fridley High School graduate with college credits toward certification as a legal assistant. She has most recently been employed by the City of Arden Hills as a department secretary. She is a notary and has taken numerous job-related classes. Staff is recommending Julie as the top candidate from a pool of 72 applicants. APPROVED APPOINTMENT OF JULIANNE TOSTENSON AS COMMUNITY DEVELOPMENT SECRETARY. 16. CLAIMS: AUTHORIZED PAYMENT OF CLAIM NOS. 79784 - 80127. 17. LICENSES: APPROVED THE LICENSES AS SUBMITTED AND AS ON FILE IN THE LICENSE CLERK' S OFFICE. 18. ESTIMATES: APPROVED THE ESTIMATES AS FOLLOWS: Frederic W. Knaak, Esq. Holstad and Larson, PLC 3535 Vadnais Center Drive St. Paul, MN 55110 Services Rendered as City Attorney for the Month of March, 1998 . . . . . . . . . . . . . . . . . . . . . . . . . . $4,250.00 CITY COUNCIL MEETING OF APRIL 6, 1998 PAGE 7 M C. Magney Construction, Inc. 19245 Highway 7 P. O. Box 249 Excelsior, MN 55331 Wellhouse No. 1 and Water Booster Station Project No. 298 Estimate No. 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$81,978.35 Councilman Schneider requested that Items 6 and 9 be removed from the consent agenda and added to the Regular Council Agenda under Item 20, Old Business. Mr. Joe Sombrio, 289 Stonybrook Way, had input with regard to the gambling licenses before Council for consideration. Mayor Jorgenson noted that the two new licenses were not on the Consent Agenda and would be considered under Council Business at which time he would be given an opportunity to address Council. Councilman Billings suggested that Item 13 relating to an application for a Minnesota Lawful Gambling Premise Permit to Knights of Columbus be removed from the Consent Agenda, added to the Regular Council Agenda, and be considered prior to Items 21 and 22 under New Business. MOTION by Council woman Bolkcom to approve the consent agenda, with the exception of Items 6, 9 and 13. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously. ADOPTION OF AGENDA: Councilman Billings requested that the agenda be amended to consider New Business prior to Old Business with the addition of Items 6, 9 and 13 from the Consent Agenda. MOTION by Councilman Schneider to adopt the agenda as amended. Seconded by Councilwoman Bolkcom. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously. OPEN FORUM, VISITORS: There were no questions or comments from the public. CITY COUNCIL MEETING OF APRIL 6, 1998 PAGE 8 NEW BUSINESS: 13. RESOLUTION NO. 24-1998 IN SUPPORT OF AN APPLICATION FOR A MINNESOTA LAWFUL GAMBLING PREMISE PERMIT TO KNIGHTS OF COLUMBUS COUNCIL 4381 FRIDLET (KNIGHTS OF COLUMBUS COUNCIL 4381, 6831 HIGHWAY 65 N.E.)(WARD 2): Mr. Pribyl, Finance Director, stated that staff is presenting a resolution to Council which would approve an application for a Minnesota Lawful Gambling Premise Permit for Knights of Columbus Council 4381 Fridley. Gambling will be conducted at the KC Hall, 6831 Highway 65 N.E. Minnesota State statutes require the adoption of a resolution approving this type of gambling permit. Staff has reviewed the application and found no reason to deny this renewal application. MOTION by Councilman Schneider to adopt Resolution No. 24-1998 in support of an application for a Minnesota Lawful Gambling Premise Permit to Knights of Columbus Counci14381 Fridley. Seconded by Councilman Barnette. Fritz Knaak, City Attorney, was asked to provide a summary of the City's ordinance and the State statutes relating to this issue. Mr. Knaak stated that the City's ordinance is regulated by a section of Minnesota Law, Chapter 349. This is an area where the State has largely pre-empted most areas of local control for lawful/charitable gambling. There is a certain area of the statutes which allows for local regulation and allows them to do certain things by way of their own ordinance. The City of Fridley has adopted an ordinance in accordance with that. The City is authorized to review the application and approve/deny the application via resolution. Any decision by Council not to approve the application must be accompanied by a specific reason for denial based on the City's ordinance criteria or State statute criteria. Lack of appropriate reason for denial could result in judicial challenges. The City really does not have a lot of discretion. Mayor Jorgenson asked if it was legal to grant a license contingent upon them agreeing to spend all of the gambling proceeds in a specified city. Mr. Fritz stated that this would not be legal. The City is permitted to require that up to fifty percent of the proceeds be spent in Fridley together with each of the cities contiguous to the city (trade area). Mayor Jorgenson stated that she believes Council was told previously that the City could reserve the right to set aside a certain percentage of the charitable gambling to go to a specific cause. Mr. Knaak stated that this is correct. There is a specific provision in the law which allows a city to dedicate up to ten percent of charitable gambling proceeds in the city to a fund that can be used for lawful purposes in the city. CITY COUNCIL MEETING OF APRIL 6, 1998 PAGE 9 Mayor Jorgenson asked if the ordinance would need to be amended to allow for this. Any licenses granted up to this point would continue to operate until the renewal date. Mr. Knaak stated that he believes any licenses approved, subject to this regulation would also be subject to amendments and modifications. If the City were to change the mix of funds that were to be spent inside the trade area they could do so at any time. As soon as it became effective the City would be able to direct those proceeds. Any change to the ordinance would require a first and second reading, along with necessary publications, etc. Councilman Billings urged caution if the City chooses to pursue this avenue. He noted that the legal gambling organizations in Fridley already do contribute over ten percent of their revenue to projects in the City of Fridley. When this regulation was put into the State statute several years ago there was a lot of discussion. Many of the charitable organizations would agree to give the City the requested ten percent. He indicated that the remaining funds would then be used in the rest of the trade area. By doing so, the City may be giving up thirty to forty percent of an even larger pool. If the City decides to go forth, a public hearing should be scheduled to allow the licensees to offer their input. Mayor Jorgenson stated that the City received a letter from one of the organizations asking that Fridley limit the number of establishments an organization can have in town. Currently, the City limits an organization to two pulltab operations in the city. One organization is requesting a third. Councilwoman Bolkcom asked Mr. Knaak if there was anything in the City ordinances or State statutes which would prohibit an organization from designating all of their proceeds to one city. Mr. Knaak replied that there was not. Councilman Barnette asked what it takes to become a pulltab operator. Reba Whiteoak, 3547 Fillmore Street N.E., gambling manager for WAABI, stated that one needs to have a signed lease, have at least fifteen members in the organization, have been in business for three years and have a set of bylaws. They then need to complete an application from the state and request approval from the City Council. Joe Sombrio, 289 Stonybrook Way stated that he felt there are changes which could be made by Council to protect the citizens of Fridley. Mr. Knaak agreed, stating that the State statutes do allow the City to be more restrictive on how gambling is regulated. If Council wishes to prohibit a type of gambling or the hours, etc., they can do so. However, the residency issue (asking that organizations be located within the city), in his opinion, could be challenged. Councilwoman Bolkcom stated that she felt most of the residents would like to change the ordinance to require that at least fifty percent of the proceeds must be spent in the community. CITY COUNCIL MEETING OF APRIL 6, 1998 PAGE 10 Mr. Sombrio stated that residents are merely saying that the Fridley ordinance does not protect the residents as far as donations or contributions. He noted that the City of Chaska has a requirement that at least fifty percent of the net profits shall be spent for lawful purposes in the City of Chaska or benefiting persons within the Chaska community. Mr. Knaak stated that in his opinion, this is not in compliance with State law. Councilman Billings stated that Chaska's ordinance requiring the profits to benefit persons within the Chaska community may very well be referring to the Chaska trade area, in which case the requirements would be the same as Fridley's. The City's previous ordinance required that ten percent of profits be spent in the City of Fridley, however they were required to change that to the "Fridley trade area". Mr. Knaak is the second City Attorney who has given the same legal opinion on this issue. Councilwoman Bolkcom stated that Council does not have reason to deny the gambling applications before them; however this does not mean that Council is unwilling to look at making future changes to the existing ordinance. Furthermore, if changes are made in the future, licensees can be required to comply with the ordinance changes. She noted that residents always have the opportunity to lobby their State representatives for changes to the State statutes. Mr. Knaak took this opportunity to read the requirements as stated in Minnesota State statutes. He agreed to talk with staff from other municipalities as well as their attorneys with regard to this issue. A resident from the audience asked if there are generally more applications for these licenses than there are places for them to operate. Mayor Jorgenson explained that an application cannot be completed without a bar lease. Ms. Gail Ahrens, 198 Mercury Drive, stated that she understands the legalities involved. However, it is very important that the gambling organizations coming in have the same funding commitments to the community as WAABI, or the children in the community will feel the effects. She noted that one of the organizations brought in an average of $37,000 per month over the past three months from their three e�sting sites. This organization plans to add a fourth site in Fridley. If they are based in Minneapolis, she wonders how large a percentage of the proceeds will be directed to activities within that community. Marilyn Peters, 4002 Si�th Street N.E., Coordinator of SACA Food Shelf, stated that WAABI has been very supportive of their organization over the years which has allowed them to help many families in the area. She hopes that WAABI would be able to stay in the area. UPON A VOICE VOTE TAI�EN ON THE ABOVE MOTION, MAYOR JORGENSON DECLAIRED THEMOTION CARRIED UNANIMOUSLY. CITY COUNCIL MEETING OF APRIL 6, 1998 PAGE 11 21. RESOLUTION NO. 25-1998 IN SUPPORT OF AN APPLICATION FOR A MINNESOTA LAWFUL GAMBLING PREMISE PERMIT TO ITALIAN AMERICAN MINNEAPOLIS FOUNDATION CLUB (MAIN EVENT, 7820 UNIVERSITY AVENUE N.E. )(WARD 3): Mr. Pribyl, Finance Director, explained that this is a new application submitted by the Italian American Minneapolis Foundation Club, founded in 1982. It operates exclusively for charitable and educational purposes. Their primary goal is to serve the residents of the northeast suburbs including Fridley. Councilman Schneider asked if this organization had an analysis of how the gambling fund proceeds have been distributed in the past. Mr. Pribyl noted that this was not a requirement of the application process. Mayor Jorgenson noted that if the application is approved, Council could go back in one year and review the distributions made over the past year to charitable organizations within the contiguous trade area. Councilman Schneider asked if they are required to complete a quarterly report. Mr. Pribyl responded in the affirmative, and noted that they are reviewed to the best of their ability to verify compliance (have spent fifty percent of the net proceeds in the trade area). The State Gambling Board would investigate any problems. Frank Balma, 7611 36th Avenue North, of the Italian American Minneapolis Foundation Club, stated that their organization is licensed, and they have conducted their activities mainly in the northeast area of Minneapolis and the northeast communities. Fridley has been a beneficiary of their funds on many occasions. Their organization is governed by a Board of Directors. They submit reports to the City and to the State of Minnesota on a monthly basis. They are audited yearly, a certified copy of which is available for review. They want to assure the community that they do not intend to do anything different. Requests for funds are reviewed and considered based on merit with education being a high priority. They provide scholarships to all deserving schools in the metropolitan area. Education scholarships account for appro�mately fifty percent of the funds. The remaining funds are distributed among churches, organizations, food shelves, etc. He is confident that they can do a good job in Fridley. Larry Moreland, 6100 Trinity Drive, noted that the Italian American Minneapolis Foundation Club is based in Minneapolis. Legally, they can take proceeds that are made at their Fridley establishments and designate them for activities in Minneapolis. He felt that an organization that is knit in the city cares more about the residents of that city than someone coming in from the outside. Rick Johnson, 4405 Si�th Street N.E., asked if the Italian American Minneapolis Foundation can legally take funds for operating expenses for their own organization. Mr. Balma stated that up to thirty percent of the total donations can be applied to CITY COUNCIL MEETING OF APRIL 6, 1998 PAGE 12 administrative costs such as payroll, rent, telephone, etc. Funds cannot, however, be used for taxes, maintenance or property improvements. Kathy Hinder, 80 Logan Parkway, asked if there is a mandatory form or criteria to allow an organization to go in and operate pulltabs out of an establishment. Mayor Jorgenson stated that if the applicant meets the requirements, it is considered a business relationship, and neither the state nor the city can regulate that relationship. Ms. Hinder stated she is aware that many pulltab operators pull in a substantial amount of funds on a given night. Councilman Billings stated that he believes a large percentage of the funds go back to the people buying the pulltabs through winnings. 7ust because the pulltabs are sold does not mean they are strictly profit. Gail Ahrens stated that she examined the Italian American's for the past three months statements that were filed with the City of Minneapolis. She was told that information on the actual places that received donations was privileged information and contained in the annual report. They would not divulge that information. However, with an average net profit of $37,000 per month over the past three months, she wondered what donations were made. Mr. Balma stated that of the estimated $100,000 collected, they have appro�mately 350 applicants being considered for scholarships in the amount of $1,500 each from all area schools in the metropolitan area. The year-end reports for their organization will be filed June 30, 1998 and will be available for review after that date. Councilman Billings asked what would be grounds for denial of an application. Mr. Knaak responded that the application could be denied if the City found that fifty percent of the proceeds were not spent in the trade area, or if the applicant had established a pattern of inappropriate conduct. Barb Hubbard, 5801 Fifth Street N.E. stated that she has been a member of WAABI for over twenty years. WAABI has been at the Shorewood for the past seven years. She stated that if these two applications before Council are granted, it will leave WAABI with nothing. Councilman Billings explained that WAABI has not submitted an application for an e�ension. Ms. Whiteoak stated that it is the public's desire to say that whoever comes to the pulltab areas knows the obligations to the City of Fridley. They want to insure the continuation of programs that WAABI has been instrumental in starting. MOTION by Councilwoman Bolkcom to adopt Resolution No. 25-1998 in support of an application for a Minnesota Lawful Gambling Premise Permit to Italian American Minneapolis Foundation Club (Main Event, 7820 University Avenue N.E.). CITY COUNCIL MEETING OF APRIL 6, 1998 PAGE 13 The City Council thanked the public for their comments and thanked WAABI for their support. They will be sorry to see WAABI leave. However, it is also important that it not be portrayed that other organizations are not welcome. Change is difficult to accept, and it will be important for new organizations seriously to consider the comments addressed by the public. UPON A VOICE VOTE TAI�EN ON THE ABOVE MOTION, MAYOR JORGENSON DECLARED THE MOTION CARRIED UNANIMOUSLY. 22. RESOLUTION NO. 26-1998 IN SUPPORT OF AN APPLICATION FOR A MINNESOTA LAWFUL GAMBLING PREMISE PERMIT TO MINNESOTA YOUTH ATHLETIC SERVICES (SHOREWOOD RESTAURANT, 6161 HIGHWAY 65 N.E.)(WARD 2): Mr. Pribyl, Finance Director, explained that this is a new application from the Minnesota Youth Athletic Services. They have indicated that they are dedicated to improving the delivery of youth sports services to young athletes, coaches and parents. They attempt to promote sportsmanship, teamwork and cultural interaction through sporting competition. They also attempt to link regional volunteer youth sports programs with others statewide. Dan Klinkhammer, 4111 Central Avenue N.E., Director of the Minnesota Youth Athletic Services, read a statement providing a summary of their organization. He noted that in 1997 alone they had over 100,000 individual participants in a variety of sporting programs. They have one other charitable gambling site in St. Paul. The Minnesota Youth Athletic Services will do whatever possible to establish and maintain a positive relationship with the residents of Fridley and its contiguous area. They are already serving as a vital fundraising tool for several Fridley organizations; several Fridley youth sports groups have a history of serving as their host to numerous MYS and AAU Youth Sport Competitions. Councilwoman Bolkcom asked if an individual can get financial assistance to help them play a sport. Mr. Klinkhammer responded in the affirmative. Councilwoman Bolkcom asked if they would also consider supporting SACA food shelves. Mr. Klinkhammer responded in the affirmative. All applications for funding are reviewed by the Board of Directors, and awards are granted based on the amount of funds available. MOTION by Councilman Schneider to adopt the Resolution No. 26-1998 in support of an application for a Minnesota Lawful Gambling Premise Permit to Minnesota Youth Athletic Services. Seconded by Councilman Barnette. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously. CITY COUNCIL MEETING OF APRIL 6, 1998 PAGE 14 OLD BUSINESS: 19. SECOND READING OF AN ORDINANCE REPEALLING CHAPTER 407 OF THE FRIDLEY CITY CODE IN ITS ENTIRETY AND ADOPTING A NEW CHAPTER 407, ENTITLED "RIGHT-OF-WAY MANAGEMENT" AND AMENDING CHAPTER 11 OF THE FRIDLEY CITY CODE, ENTITLED "GENERAL PROVISIONS AND FEES" (TABLED MARCH 16, 1998: AND AUTHORIZE PUBLICATION OF OFFICIAL TITLE AND SUMMARY: Mr. Flora, Public Works Director, explained that as a result of the last Council meeting and the concerns expressed on some of the issues, he met with representatives of the utility companies on March 24, 1998 and made some substantial changes to the ordinance at that time. Some of these changes included a new paragraph to allow for the waiving of fees in an emergency; the excavation permit was broken down into three major parts; the definition of obstruction was expanded to apply to anything over eight hours in the right- of-way; a correction was made to the degradation cost; and a clarification was made on the issue of undergrounding. After meeting with the utilities and the task force, he believed that the ordinance before Council was a better document than originally developed. It properly addresses the municipal as well as utility issues in overseeing the right-of-way and recoupment of costs associated with that. Mayor Jorgenson stated that she received letters from Paragon Cable, U. S. WEST and Minnegasco regarding the proposed right-of-way ordinance. She asked that they be entered into the record. MOTION by Councilman Schneider to receive the letters from Paragon Cable dated March 31, 1998, from U. S. WEST dated April 2, 1998 and from Minnegasco dated Apri13, 1998, and that they be entered into the record. Seconded by Councilman Barnette. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously. Questions were raised about the degradation costs (407.11) and clarification was requested in regard to the fee calculations. After some discussion, Councilman Billings felt that the reference to "square foot" in the calculation should be changed to "lineal foot". He also felt that the calculation for the excavation permit should be clarified. Councilwoman Bolkcom asked how the cost would be calculated if two utility companies were working in the area at the same time. Mr. Flora noted that they would share the cost associated with the necessary permits. CITY COUNCIL MEETING OF APRIL 6, 1998 PAGE 15 Mayor Jorgenson asked if the City of Fridley maintains the right-of-ways on all streets in the city. Mr. Flora stated that the City maintains all with the exception of the county and state highways. In the case of county and state Right-of-Ways, there is a reduced fee of fifty percent. This fee is necessary due to the fact that those roads intersect with Fridley streets, and it is necessary for the City to maintain information in regard to what is in their system and what the city could encounter when working in the right-of-way associated with the County or State highway. Councilman Billings asked for a clarification in regard to obstruction permits (pg. 19.14). Mr. Flora explained that if a utility is working on a project with the city, they would be required to pay one-half of the excavation fee. However, if they are doing a county or highway project, they would pay no excavation fee, only an obstruction permit fee and provide the City with mapping data for recording purposes. The obstruction fee re-coups the administrative costs associated with recording the data into the City's data base. Councilman Schneider stated that he felt this was a very complicated ordinance. He felt that the data should be analyzed after a period of time to make sure that the fees are appropriate. Councilman Billings asked how the proposed fees compare with the fees that e�st today. Mr. Flora noted that the only e�sting fee is a$200 excavation fee and a$25 re-inspection fee. Questions were also raised with regard to franchise supremacy. Only in those tendencies that an item is not negotiated in a franchise with the utility companies, would the ordinance apply. Councilman Schneider asked how the fees in the proposed ordinance compare to model ordinances. Mr. Flora explained that this is a model ordinance and that it complies with State statutes. The fees are based upon the estimated time involved in processing the information by personnel. Councilman Billings noted that there are areas of the ordinance referring to "director." It was felt that perhaps "the City" may be more appropriate language in many of those areas. He requested that the ordinance be reviewed for said necessary changes. In consideration of the numerous concerns, it was suggested that perhaps approval of this ordinance should be tabled until after the Public Utilities Commission meets or a state- wide ordinance is approved. Mayor Jorgenson noted that this could likely be at least one year away. Councilman Schneider stated that he felt an ordinance needed to be in place to determine what is reasonable. If changes need to be made, amendments can be made to the ordinance. It was his feeling that the language should be changed with necessary clarifications and that staff should bring it back to Council at the April 20 meeting. He CITY COUNCIL MEETING OF APRIL 6, 1998 PAGE 16 also asked if language could be included in the ordinance to allow for a formal review process after a specified period of time to review the costs. Mr. Flora responded that this could be done. Councilman Barnette asked if the Public Utilities Commission could come up with a fee schedule that would be applicable state-wide. Mr. Flora stated that he does not feel it would be easy to adopt state-wide fees. However, the City could be required to adjust the fees if the Public Utilities Commission determines that the fees are in excess of what they should be. MOTION by Councilwoman Bolkcom to table the second reading of this ordinance until the ne�t regular City Council meeting of April 20, 1998. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously. Mr. Richard Pilon, Senior Engineer of Minnegasco, presented Mr. Flora with their GIS maps for the City of Fridley, and indicated that they would be available to the City on disk sometime in the fall of 1998. 20. 1998 APPOINTMENTS TO CITY COMMISSIONS (TABLED MARCH 16, 1998 : MOTION by Councilwoman Bolkcom to re-appoint Dean Saba to the Planning Commission. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously. MOTION by Councilwoman Bolkcom to re-appoint Blaine Jones to the Appeals Commission. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously. MOTION by Councilwoman Bolkcom to re-appoint Bruce Bondow and Rosalie Landt to the Environmental Quality and Energy Commission. After discussion, Councilwoman Bolkcom rescinded her motion to re-appoint Bruce Bondow until they have had an opportunity to confirm his continued interest in serving on the commission. MOTION by Councilwoman Bolkcom to re-appoint Rosalie Landt to the Environmental Quality and Energy Commission. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor 7orgenson declared the motion carried unanimously. Mayor Jorgenson noted that Council received a letter in the last Council packet of mail from Annette Mitchell requesting appointment to the Human Resources Commission. CITY COUNCIL MEETING OF APRIL 6, 1998 PAGE 17 MOTION by Councilwoman Bolkcom to re-appoint LeRoy Oquist and Satveer Chaudhary and to appoint Annette Mitchell to the Human Resource Commission. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously. MOTION by Councilwoman Bolkcom to re-appoint Richard Young and Tim Solberg to the Parks and Recreation Commission. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor 7orgenson declared the motion carried unanimously. MOTION by Councilwoman Bolkcom to re-appoint Genevieve Peterson to the Cable Television and Telecommunications Advisory Commission. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously. MOTION by Councilwoman Bolkcom to re-appoint Mavis Hauge to the Police Civil Service Commission. Seconded by Councilman Barnette. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously. Mayor Jorgenson noted that the City received a letter of resignation from Duane Prairie for the Housing and Redevelopment Authority. Pat Gabel has shown an interest in serving on the HRA, and it would be her recommendation to appoint Pat Gabel. MOTION by Councilman Schneider to appoint Pat Gabel to the HRA. Seconded by Councilwoman Bolkcom. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously. 6. VARIANCE, VAR #98-04, BY KIM MILLER OF MILLER FUNERAL HOME, TO REDUCE THE FRONT YARD SETBACK FROM 80 FEET TO 37 FEET TO ALLOW THE CONSTRUCTION OF AN ADDITION ALONG THE SOUTH SIDE OF THE PROPERTY, GENERALLY LOCATED AT 6210 HIGHWAY 65 (WARD 2): Councilman Schneider stated he asked that this item be removed from the consent agenda to obtain clarification on the e�sting garage and the finishing materials to be used on such. Mr. Hickok, Planning Coordinator, explained that the representatives of Miller Funeral Home are currently evaluating the different options for the e�terior finish on the existing garage. Without any stipulations, the City Code requires that building finishes be something other than plain concrete block, and it is his belief that they can come to some satisfactory resolution on this matter. Councilman Schneider stated that he feels there should be a stipulation included that the applicant work with staff to come up with a satisfactory finish for the e�sting garage. MOTION by Councilman Schneider to approve the Variance Request #98-04 with the following stipulations: 1) that the petitioner grant a 10 foot easement adjacent to the CITY COUNCIL MEETING OF APRIL 6, 1998 PAGE 18 e�sting drainage easement to provide access to a sewage pumping station; and 2) that the petitioner come to an agreement with staff as to the e�terior finish on the west wall of the existing garage. Seconded by Councilman Barnette. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously. 9. APPROVE SUPPLEMENTAL AGREEMENT TO THE 57TH AVENUE RECONSTRUCTION PROJECT AGREEMENT BETWEEN THE CITY OF FRIDLEY AND BRW: Councilman Schneider noted that there has been a significant increase in the estimated cost of this project and wondered how much will be applied to the taxpayers. Mr. Flora noted that this information was contained in his memorandum of April 6, 1998. Most of the added costs are associated with inspection and surveying which will be reimbursed by the County. MOTION by Councilman Schneider to approve the Supplemental Agreement to the 57th Avenue Reconstruction Project Agreement Between the City of Fridley and BRW. Seconded by Councilwoman Bolkcom. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously. 23. INFROMAL STATUS REPORTS: Mr. Burns noted that Dave Sallman, Public Safety Director, was present to discuss the Police Department's 1998 Goals and Objectives; however due to the late hour, Council may wish to divert this matter to the Apri127 conference meeting. This was the consensus of the Council. Councilwoman Bolkcom reminded the audience of the SOth Anniversary Task Force meeting on Thursday evening, noting that they are actively looking for new members. Mr. Flora provided a brief update as to the Hackman Avenue sump-pump line. He noted that two meetings were held with a very poor response from residents. He felt that the line should be put in. As new pumps are connected to the pipe, a$200 fee could be collected as originally discussed which will help recoup some of the costs for the City. CITY COUNCIL MEETING OF APRIL 6, 1998 PAGE 19 ADJOURNMENT: MOTION by Councilwoman Bolkcom to adjourn the meeting. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously and the Regular Meeting of the Fridley City Council of April 6, 1998 adjourned at 11:29 p.m. Respectfully submitted, Tamara D. Saefke Nancy J. Jorgenson Recording Secretary Mayor