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08/28/2006 - 00027624CITY COUNCIL MEETING CITY OF FRIDLEY AUGUST 28, 2006 The City Council meeting for the City of Fridley was called to order by Mayor Lund at 7:30 p.m. PLEDGE OF ALLEGIANCE: Mayor Lund led the Council and audience in the Pledge of Allegiance to the flag. ROLL CALL: MEMBERS PRESENT: Mayor Lund Councilmember-at-Large Barnette Councilmember Billings Councilmember Wolfe Councilmember Bolkcom OTHERS PRESENT: William Burns, City Manager Scott Hickok, Community Development Director Richard Pribyl, Finance Director Fritz Knaak, City Attorney Don Abbott, Public Safety Director Jeff Carson, Attorney for Samir Awaijane Mindy and Samir Awaijane, 5096 Hughes Avenue Bob Becker, 1684 18th Avenue NW Peter Eisenzimmer, 6535 Oakley Drive Emma Rose, 1241 Norton Avenue APPROVAL OF PROPOSED CONSENT AGENDA: APPROVAL OF MINUTES: City Council Meeting of August 14, 2006. APPROVED. NEW BUSINESS: 1. First Reading of an Ordinance for a Text Amendment, TA #06-02, by the City of Fridley, to amend Chapter 6 of the Fridley City Code to Substitute Members for the Appeals Commission. William Burns, City Manager, stated staff is recommending that Council formalize a process whereby the Chair or Chair designee of the Planning Commission may be called to sit on the Appeals Commission in order to establish a quorum. The amendment is to Chapter 6 of the Fridley City Code. FRIDLEY CITY COUNCIL MEETING OF AUGUST 28, 2006 PAGE 2 THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 2. Resolution Certifying Proposed Tax Levy Requirements for 2007 to the County of Anoka. William Burns, City Manager, stated current Minnesota Statutes require that we do this annually prior to September 15. The operating portion of this year's proposed levy is $9,002,390, or 2.8% greater than the 2006 levy for operations. The portion of the levy for GO Improvement Bonds is $198,036. This brings the total proposed levy for 2007 to $9,200,426. Staff recommends Council's approval. ADOPTED RESOLUTION NO. 2006-49. 3. Resolution Adopting the Proposed Budget for the Fiscal Year 2007. William Burns, City Manager, stated Minnesota statutes also require that we approve our preliminary budget for the ensuing year prior to September 15. The total amount budgeted is $17,896,686, or 2.5% less than we budgeted for 2006. The amount includes a 3.7% increase for the General Fund. Council will give further review to the 2007 budget at their October 17 conference session. At that time, Council may subtract from, but not add to the preliminary property tax levy. The public hearing for the 2007 budget is scheduled for December 4, 2006. Staff recommends Council's approval. ADOPTED RESOLUTION NO. 2006-50. 4. Resolution Authorizing Changes in Appropriations for the 2006 Budget for January through August, 2006. William Burns, City Manager, stated that the $53,694 in General Fund adjustments are due to donations, grants and insurance reimbursements. They are almost entirely for Police and Fire Department revenues and expenditures. Staff recommends Council's approval. ADOPTED RESOLUTION NO. 2006-51. 5. Resolution Authorizing Staff to Proceed with the Process of Establishing a Quiet Zone in the City of Fridley. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA 6. Claims (127936 — 128118). APPROVED FRIDLEY CITY COUNCIL MEETING OF AUGUST 28, 2006 PAGE 3 7. Licenses APPROVED THE LICENSES AS SUBMITTED AND AS ON FILE. 8. Estimates APPROVED THE FOLLOWING ESTIMATE: Park Construction, Inc. 500 — 73rd Avenue N.E., Suite 123 Fridley, MN 55432 2006 Street Improvement Project No. ST. 2006 — 1 Estimate No. 4 ...................................................... $269,474.38 MOTION by Councilmember Barnette to approve the consent agenda as presented, with the removal of Items 1 and 5. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. ADOPTION OF THE AGENDA: MOTION by Councilmember Bolkcom to approve the agenda with the addition of Items 1 and 5. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. OPEN FORUM (VISITORS): Peter Eisenzimmer, 6535 Oakley Drive, asked how many raises Council receives each year. Mayor Lund replied that one raise a year is offered and it is usually a cost-of-living increase. Mr. Eisenzimmer questioned if an increase will be given each year. William Burns, City Manager, replied that it tends to be an annual request, but Council does not always accept the increase in pay. The object of the raise is to keep our City Council mainstream with other City Councils. Mr. Eisenzimmer stated that an elected official should not get a raise each year as this is a part- time job. Councilmember Wolfe asked if Mr. Eisenzimmer knew what the councilmember were paid. FRIDLEY CITY COUNCIL MEETING OF AUGUST 28, 2006 PAGE 4 Mr. Eisenzimmer stated that he did know the salaries as they were published. Councilmember Barnette stated he has gone five years with no raise, but the past three years there has been a cost-of-living increase in salary along with City staff. Councilmember Wolfe stated he has received three raises since he has been on the Council. Councilmember Bolkcom invited the public to attend Art in the Park at Rice Creek at the Banfill-Locke Center. This event will be held on Sunday, September 10 from 11:00 a.m. to 5:00 p.m. There will be free activities, artists, music, poetry, food, etc., for all ages. NEW BUSINESS: 5. Resolution Authorizin� Staff to Proceed with the Process of Establishin� a Quiet Zone in the Citv of Fridlev. Don Abbot, Public Safety Director, presented information regarding a Quiet Zone. Federal Law requires engineers of railroad locomotives to sound their horns upon approach to every grade level crossing. Federal rules provide for a process whereby local jurisdictions can designate a Quiet Zone. A Quiet Zone is an area up to 1/2 mile in length where all crossings within that Quiet Zone are then covered by an order from the Federal Railroad Administration. This is an order telling the engineers not to blow their horns unless there are some circumstances or dangers. Residents in close proximity to the Burlington Northern Sante Fe Railway (BNSF) crossing at Osborne Road and 77th Avenue NE have voiced their desire to implement a Quiet Zone covering these two crossings to improve their quality of life. Complaints include having to put telephone conversations on hold because the train whistle is too loud and children crying because of the loud noise. The rail traffic on the BNSF inain line has approximately doubled in the past 15 years. An increase from about 30 trains per day to about 60 trains currently. Northstar Commuter Rail is expected to add 12 trains per day beginning in 2009. The City has been considering a Quiet Zone for the past three years. The new Federal rule covering quiet zones was implemented in July of 2005 following a moratorium on new Quiet Zone creation while the final rule was updated. Mr. Abbot stated that Northstar Commuter Rail was expected to result in the addition of a third BNSF track along side the two already in place. This change would substantially alter our two Quiet Zone crossings. The City decided to wait for Northstar-related changes and construction to create our Quiet Zone. Quiet Zones require the implementation or construction of supplemental safety measures that included crossings to maintain or enhance safety in the absence of train horns. The FRA has created a safety index for every grade crossing in the country. They look at past accident history, train traffic, street traffic, what current safety measures are in place, etc., and they assign a numerical value for safety at every crossing. Mr. Abbot said the initial estimates for the cost of the installation of the supplemental safety measures were up to $400,000. The top end option would be to add four quadrant gates. The final agreement between the Northstar Commuter Rail and BNSF from June of this year does not include the third track Therefore no changes to the existing crossings are needed. Based on this FRIDLEY CITY COUNCIL MEETING OF AUGUST 28, 2006 PAGE 5 information, staff began to move ahead with final research into a Quiet Zone. Staff inet with representatives of the FRA, MnDOT, and BNSF on August 4 to conduct a diagnostic evaluation of our Quiet Zone. The results of the diagnostic evaluation showed that raised concrete medians would be our best choice. The good news is that they cost less than four quadrant gates and yet they yield the best safety scores. Also medians offer the ability to maintain our Quiet Zone during future reviews. The FRA would review the Quiet Zone every five years. If at sometime in the future a third main line is added, the median would be able to maintain safety at the crossings in such a way that the Quiet Zone could be continued. Concrete medians are recommended to be 100 feet in length, 4 feet in width and 8 inches in height. By losing the train horns and with the addition of the medians, evidence shows crossing safety would improve for both pedestrians and vehicles. Mr. Abbot stated that three properties are expected to have their driveway access limited by medians; Johnson Printing at 77th Avenue NE, Sentinel Chemical at 77th Avenue NE, and the Schmidt Osborne Building at 100-148 Osborne Road. All three of these property owners have been contacted, and staff is continuing to work with them to minimize any impact that may result from the medians. One resident at 90 Osborne Road may be affected. Anoka County Highway is the road authority for Osborne Road and they will have to approve our plans. 77th Avenue NE is a City street so we just need City approval. Cost estimates at this point, pending final engineering and County approval are $65,000. He reviewed the timetable for the project: Engineering and Planning — Winter 2006-2007 Notifications to and meetings with affected property owners — Fa112006 Negotiations with Anoka County — Fall and Winter 2006-2007 Funding authority requested of Council — Winter/Spring 2007 Construction — Spring and Summer 2007 60- Day Notification and Comment Period per FRA — Summer 2007 Implementation of Quiet Zone — Late Summer/Fall 2007 Mr. Abbot stated that Staff has prepared a draft resolution for Council consideration. This resolution would authorize and direct staff to proceed with the Quiet Zone process by authorizing planning and engineering, directing staff to continue to work with the affected property owners to minimize impacts to their properties, and directing staff to continue working with Anoka County to ensure plan approval while minimizing additional requirements that the County would have in the resulting costs. Maintaining or enhancing public safety at the crossing is the top priority. This resolution does not include a funding component. Staff will return to Council for funding authorization and final approval of the Quiet Zone process following the engineering and planning process. Staff recommends Council's approval. Councilmember Bolkcom commented that she has received several inquiries regarding a Quiet Zone. One comment was the Quiet Zone will still have noise due to the engines, etc. Mr. Abbot replied the concern is of the safety of the crossing itself. With the research from the Coon Rapids Quiet Zone, adding medians there resulted in a decrease in the number of vehicles that operated around the gates when there were in the down position. In a three-month study period prior to median installation, there were 5 to 10 vehicles per month driving around the FRIDLEY CITY COUNCIL MEETING OF AUGUST 28, 2006 PAGE 6 crossings. In the three months after the Quiet Zone installation, there was only one vehicle that drove over the median and that was a DUI driver that was arrested. The safety of the crossings is likely to improve. It is correct that train horns are only one part of the noise of the train, but the horn is the loudest and carries the furthest. Councilmember Bolkcom asked Dr. Burns to comment on Anoka County's concerns. William Burns, City Manager, stated that the prospect for getting additional openings from the County is not good. The County does not want additional access points onto their County roads. Councilmember Bolkcom stated that she received an inquiry regarding the gates failing to come down when a train is coming. Mr. Abbot replied that typically when the gates malfunction, they are in the downward position. He did not recall a time when the gates have failed in the up position. If this does happen, it would be very rare. Councilmember Barnette asked who will fund the cost. Mr. Abbot replied that sources for the funding have been discussed and the Minnesota State Aid Street Fund will help with the cost. Additional funding could include the City Street Improvement Budget. Councilmember Barnette encouraged those interested to check out the Quiet Zone in Coon Rapids on Hanson and Egret. Mayor Lund stated that this Quiet Zone will improve the quality of life for those residents living in this area. MOTION by Councilmember Bolkcom to submit presentation materials from Mr. Abbott regarding the Quiet Zone into the record. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Scott Hickok, Community Development Director, stated that he received a call from Joan Olson objecting to City staff spending time on this project. She felt that their time could be spent better elsewhere. He asked if her comment could be made part of the record. Mayor Lund stated that this is not a public hearing and she will have an opportunity to voice her opinion in the future. Her name will be added to the list of those who want to be contacted as the work on this item proceeds. Councilmember Bolkcom stated that there are a lot more than a dozen people who will be affected by the Quiet Zone. During National Night Out, at more than one neighborhood meeting, they had to stop talking because of the train whistles. FRIDLEY CITY COUNCIL MEETING OF AUGUST 28, 2006 PAGE 7 MOTION by Councilmember Bolkcom to adopt Resolution No. 2006-52. Councilmember Bolkcom asked if an email could be sent out to those on the list with updates, and if she could get a copy of the email. MOTION by Councilmember Wolfe to remove item number 9, Consider revocation of Special Use Permit SP #89-08, for Sam's Auto World from the table. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. PUBLIC HEARING: 9. Consider Revocation of Special Use Permit, SP #89-08, for Sam's Auto World, Generallv Located at 7570 Hi�hwav 65 NE (Ward 2) (Continued Au�ust 14, 2005). Scott Hickok, Community Development Director, stated that this business is located at 7570 Highway 65 and is zoned M-1, Light Industrial. The site contains an auto repair business called Sam's Auto World. The business fronts on Highway 65 south of Osborne Rd. Fridley Terrace is to the south. On November 18, 1991, SP #89-08 was reassigned to the owners of Sam's Auto World. In 1992, City Council considered revocation of SP #89-08 for paving and screening outside storage issues. The business owner complied with stipulations and the City ceased the revocation process. Past problems have included high grass, outside storage, and unauthorized signs. Last year there was an incident of an employee living in a semi-trailer on site. This year's problems involved business vehicle parking in the right of way, selling cars without a dealer's license from the State, and operating an automobile salvage/junk yard without a special use permit to do so. The business owner tried to sell cars on this site in the 1990s. In 1999, the owner withdrew a rezoning application and instead purchased a C-2 property. Mr. Hickok stated that about two years ago the owner sold A& E Auto Sales, but had leftover inventory. Staff received complaints that the owner was continuing to sell vehicles without proper zoning. Samir Awaijane asked the State for time to liquidate his inventory from the sale of his Osborne site. The State Licensing Unit gave Awaijane a date in late 2005 to have the cars liquidated. Mr. Awaijane requested an auto leasing license to allow auto "loaners" for body shop customers. Staff approved State Lessor Dealer's License for 9 vehicles (4 family and 5 loaner vehicles). Since that time, the Department of Public Safety investigated and determined there were violations and outside storage above the fence height. Section 205.17.7.D, screening requires items to be stored no higher than 2 feet below the fence line. Despite being aware of the inability to sell cars in an M-1 zoning district, Samir Awaijane has violated City Code and the State Dealer's License regulations. Mr. Hickok said there were 23 vehicles listed on Mr. Awaijane dealer's license. Another list showed 14 vehicles listed to A& E Auto Sales. The vehicles were to be liquidated to 4 family and 5 loaner vehicles. The owner of this property has continued to buy damaged vehicles from FRIDLEY CITY COUNCIL MEETING OF AUGUST 28, 2006 PAGE 8 insurance companies and resell them. Purchases as early as December of 2005, and sold retail in the very recent past. Last week staff observed about a dozen vehicles on site which is in excess of the 9 that the license allows. Mr. Awaijane has operated a junk yard with out a special use permit. Mr. Awaijane has continued to violate various City ordinances. Staff recommends that the City Council take action on September 11, 2006, to revoke Special Use Permit, SP #89-08, for lack of compliance with stipulations of said permit, which states he must operate garage in a law-abiding manner. MOTION by Councilmember Wolfe to accept the 14 pages of supporting documentation into the records. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Attorney Carson, Mr. Awaijane's Attorney, said he had prepared a memorandum on behalf of Mr. Awaijane, and asked that it be admitted into the record. MOTION by Councilmember Wolfe to admit Attorney Carson's memorandum and supporting documents in to the record. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Attorney Carson objected to the receipt of any information or documents he has not seen. Anything that was not seen for the original public hearing, he would not be prepared to address tonight. Mayor Lund asked for clarification. Attorney Carson sated that the list of violations he received did not contain everything spoken about tonight. An example was that Mr. Awaijane was operating a junkyard without a permit. This was not on the claim of August 7, and he would not be prepared to discuss that issue. Councilmember Bolkcom asked if Mr. Carson had been in contact with City staff before tonight's meeting. It was her understanding that no one attended the last meeting. Attorney Carson stated he did review the tape and met with staff. He stated that notification was given to Mr. Awaij ane in a timely manner. Mr. Awaij ane was not aware that it was the intent of the paperwork to remove his ability to work on cars. Mr. Awaijane was just then aware that the City was not only going to remove the permit for him to sell cars but also the ability for him to work on cars. Mr. Carson stated that Mr. Awaijane has been a resident of the City of Fridley for 23 years and has been operating this business since 1991. The information packet distributed to the Councilmember's was history of the recent happenings including a permit from the State, a copy of the special use permit, a copy of the actual permit, approval of the zone for special sales, and the State Statue permitting the sale of the lease vehicles. It is true if the vehicles are sold within the first 120 days of ownership, a tax would need to be paid on the FRIDLEY CITY COUNCIL MEETING OF AUGUST 28, 2006 PAGE 9 vehicle sale. The current charge from the City of Fridley is for a failure to operate business in a peaceful and law abiding way. Attorney Carson stated that Mr. Bob Becker is Mr. Awaijane bookkeeper and the person in charge of obtaining the permit for Mr. Awaijane. Mr. Becker has had direct conversation with Mr. Peltier who was the State representative involved with this permit. It is not the case that the State is coming after Mr. Awaijane to remove the permit nor has Mr. Awaijane been presented with any citations. Mr. Awaijane has paid the tax on the vehicles that were sold before the 120 days. Every problem that has occurred with this business has been related to the sale of vehicles. Mr. Awaijane has agreed that within 60 days of tonight's date, he will remove all the sale vehicles from the property, give up the permit to lease and sell vehicles, and simply operate his business as a body shop. Most of the violations that have occurred were corrected in a timely manner. The State does not claim that the sale of vehicles prior to 120 days causes the permit to be in jeopardy. Mr. Becker, Mr. Awaijane's bookkeeper, stated that he has a 25-year history of running a leasing company in Burnsville. When Mr. Awaij ane decided to sell the dealership, A& E Auto Sales, they had a conversation on what to do with the cars and what he intended to do with his business. Mark Peltier is the State License Inspector. When we moved locations, we notified the State of the move to maintain the used car license. We knew we could not get zoned as a used car dealer so Mr. Peltier and I discussed the idea of the leasing license. This helped in disposing of the inventory but in the meantime the bills also needed to be paid. Sam's business was to buy salvage cars, repair them and put them on the used car lot for sale. That doesn't help the body shop business when your number one customer is yoursel£ It has taken a while to get into the public view as a body shop. That is where the cash crunch and cash flow come from. He is now building up this business and increasing the cash flow. Councilmember Billings asked for clarification. Mr. Becker indicated that the primary business for a period of time was purchasing vehicles, rehabilitating them and reselling them. He questioned if that part of the business is still going on today. Mr. Becker replied that Sam still buys an occasional parts car to repair something that has been damaged. But most of the vehicles in inventory are at least 6 to 8 months old. Councilmember Billings asked how many vehicles have been purchased, reconditioned and put out for sale since November of 2005. Mr. Becker answered about a dozen. Councilmember Billings commented that on Exhibit C, the Minnesota Department of Public Safety form that Mr. Awaijane brought to the City of Fridley to sign off for the zoning for the leasing license, it states no more than 4 Awaijane vehicles plus 5 loaner vehicles for customers, for a total of 9 vehicles. He asked what that was supposed to mean. Attorney Carson answered it was his belief that the stock would be reduced to 9 vehicles. At the time that this form was issued, there were more vehicles than 9 on the lot. Mr. Awaijane FRIDLEY CITY COUNCIL MEETING OF AUGUST 28, 2006 PAGE 10 knows selling vehicles cannot be part of his business and he is volunteering to get rid of the vehicles to do body repair only. Councilmember Billings stated that he understood Mr. Becker stating that they were still buying, repairing and selling vehicles, about 2 a month. Attorney Carson stated that is not supposed to be happening. Councilmember Billings asked about Items A and A1 from Mr. Carson's material. It states that this area must be screened and the storage area is for the wrecked vehicles. The owner is stripping parts and storing parts in the area as well. This area was intended to be fenced so the public cannot see the wrecked vehicles. This is what makes the area look like an auto recycling center. These parts are being used for fixing and reselling vehicles. In a body shop, an owner would go to the store and buy the new part that is needed. If you strip parts from cars to repair vehicles, how do you control invoices and know what to charge the customer? Attorney Carson replied that the public hearing for the revocation did not talk about this item. Councilmember Billings replied that the reason for a public hearing is to gather all the information possible regarding the agenda item. The public hearing is relative to what is going on at the site that is connected to the Special Use Permit. Mr. Awaijane, owner of Sam's Auto Parts, stated that parts that are stripped from cars for repair will not happen any more because there will be no license to purchase cars. He stated that he does not run a junk yard and sell parts. The reason he was renovating cars in the past was to keep employees working. No notice was received from the City regarding cars being stored up too high. The storage is way in the back of the building and cannot be seen from the front street. If anyone had told him it was too high, he would have lowered the cars. Councilmember Bolkcom asked if Mr. Awaijane was aware of the stipulations that went along with the Special Use Permit. Mr. Awaijane said he was not aware that it was against the law to store the vehicles that high. Attorney Carson stated that Mr. Awaijane probably remembers receiving the stipulations back in 1991 but was not referring to them in the recent past. Councilmember Bolkcom asked whose responsibility it was to make sure the stipulations are adhered to, the owner of the property or the City? Even though the City did not contact him, it is the owner's responsibility to follow the stipulations. Attorney Carson agreed that it is the owner's responsibility to follow the stipulations. The history of the property has been that if something was not correct, he would get a notice and correct the problem. It is the obligation of the property owner to take care of the property. If Mr. Awaijane liquidates his inventory in 60 days, he will totally get out of the sale of vehicles and just operate his business as a body shop. FRIDLEY CITY COUNCIL MEETING OF AUGUST 28, 2006 PAGE 11 Mayor Lund stated that Mr. Awaijane has had since November of 2005 to liquidate his inventory and there are still violations reoccurring. Mr. Awaijane admitted sales are slow so it may be hard to liquidate the vehicles in 60 days. Attorney Carson agreed that it hasn't worked to sell cars on the market. Given Mr. Awaijane's history and long-term residence, he has operated a good business with the exception to selling cars. Councilmember Barnette asked for confirmation that in 60 days there would be no more than 9 cars on the lot. Attorney Carson answered that is not correct. After 60 days there would be no cars for sale. There would be no cars on the lot except for vehicles owned by people who are working there. Councilmember Wolfe asked if he was correct in assuming that if Mr. Awaijane gets what he wants tonight, there would be no more cars for sale after 60 days. Mr. Hickok commented that if Mr. Awaijane agrees to liquidate the inventory in 60 days and no longer sells cars, that would mean the owner is taking a step in the right direction. The car sales have been a big issue with this business, but they would also need to adhere to the stipulations. There is on-going code enforcement and they should not wait for a violation notice to correct things. A lot of staff time has been devoted to this site. The owner needs to operate to the confines of the stipulations and know what is acceptable. The auto body operation will go away if the stipulations are not followed. Attorney Carson asked for one more visit from staff so within the 60 days they can liquidate the inventory and bring the business up to code. Councilmember Bolkcom stated that the Council does not want to put Mr. Awaijane out of business, but wants him to abide with the City ordinances like other business owners. City staff can do a better job at looking at all the special use permits, but staff does not have the time to visit each site to check for violations. It is the owner's responsibility to abide by the stipulations and run their business properly to City Code. Attorney Carson agreed with Councilmember Bolkcom and stated that they will get to work. Councilmember Bolkcom asked Mr. Knaak how to proceed with this public hearing. Mr. Knaak, City Attorney, advised to close the public hearing. Staff can be directed to prepare a resolution to approve or reissue the special use permit subject to certain points and rules. Conditions currently existing on site could be reiterated with additional terms. Mayor Lund asked if it would be simpler to continue this hearing in 60 days for review. Mr. Knaak answered that if there is need for an additional public hearing, it would be fine. This is not an action item, so it will need to be placed on the agenda in the future to continue. FRIDLEY CITY COUNCIL MEETING OF AUGUST 28, 2006 PAGE 12 Councilmember Bolkcom stated that it seemed simpler to close the public hearing and bring it to the ne�t meeting. Mr. Knaak stated that if the owner has 60 days to clean up the area, it could be part of the resolution to adopt at the ne�t meeting. Councilmember Wolfe questioned when the 60 days would start if they do not vote on the item tonight. Mr. Knaak stated that they would not need to wait for formal action on the item to start the 60 days. MOTION by Councilmember Wolfe to close the public hearing. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING WAS CLOSED AT 9:05 P.M. Councilmember Billings commented that just because the offer was 60 days to liquidate the inventory does not mean that they need to be granted 60 days. If the item is not voted on until Sept. 11, Council could give them 45 days. It will be up to staff and Council as to how many days are granted to clean up the site. Mayor Lund stated that there may be a different amount of days available to clean up the site, but probably 60 days from today. Attorney Carson answered that they are willing to start clean up tomorrow. NEW BUSINESS: 10. Resolution Declarin� a Question to be Placed on the Ballot at the Next Re�ular Municipal Election, to Increase Water, Storm Water and Sanitarv Sewer Rates in Excess of the Inflationarv index or 5%, Whichever is Less as Required bv Section 7.02 of the Fridlev Citv Charter. Mr. Pribyl, City Treasurer, stated that this resolution identifies the ballot language that will appear on the ballot at the ne�t regular municipal election if approved by at least 4/5 vote of Council. In order to ensure the question is placed on the November ballot, the resolution must be adopted no later than September 11, 2006, to meet the election requirements. This increase and the inflationary portion of the rate increase are estimated to cost an average consumer in Fridley (18,000 gallons/quarter) a total of approximately $42.00 per year. The public hearing notice was published in the Fridley Sun-Focus on July 27, August 3 and August 10, as required by the Charter and the public hearing was held on August 14, 2006. FRIDLEY CITY COUNCIL MEETING OF AUGUST 28, 2006 PAGE 13 Mr. Pribyl stated that the question would be stated in the following form: The City is required to run the water, sanitary sewer, and storm water operations like a business. Due to the City Charter limitation on rate increases, the operations lost approximately $500, 000 in 2005. The City expects similar or gr�eater losses in 2006 and beyond unless these rates are raised as follows: Water —16 cents per 1, 000 gallons used; Sanitary Sewer — 32 cents per 1, 000 gallons of water used; and Storm Water —13 cents per quarter per residential property. Do you approve the utility rate increases listed above that are needed to bring revenues even with expenses? Staff recommends a motion adopting the resolution. Councilmember Bolkcom questioned what the loss would be if this resolution was not approved. Mr. Pribyl answered that approximately $620,000 would be lost in 2007. Mr. Eisenzimmer, 6535 Oakley Drive, asked how the question will be stated on the ballot. Mr. Pribyl answered that the ballot would be stated exactly as it is on the resolution. The portion that is in italics will be on the ballot. Pam Reynolds, 1241 Norton Avenue, questioned the last Council meeting minutes. She indicated that in the third paragraph on Page 16, it reads the utility rate would need to be brought before the voters to approve a monthly $10 increase. But on the cover letter for the item tonight it states it would be a total of approximately $42.00 a year. The minutes should be changed to quarterly $10 increase. The other question was what the increase would be for senior citizens. Mr. Pribyl answered the minutes should be changed to $10.00 a quarter increase. The senior citizen rate would be proportionate to what it is now. Mr. Eisenzimmer questioned if this increase would happen every year or if this was just a one- time request. Mayor Lund replied that the increase request comes forward when they feel there is a need to increase rates. Under Charter rules, they would bring the request to the voters. Councilmember Wolfe stated that they would only increase what the City would need in order to pay the bills. Dr. Burns stated that this issue on the ballot would establish the rates for 2007 and 2008. Mr. Pribyl stated that they were looking at a split rate, but they decided to just have one increase. At this point they have used the inflationary rate through 2008 to match revenue with expenses. FRIDLEY CITY COUNCIL MEETING OF AUGUST 28, 2006 PAGE 14 Mr. Eisenzimmer asked where the funding comes for holding ponds. Mayor Lund replied that some funds come from sewer and water and State aid. MOTION by Councilmember Barnette to adopt Resolution No. 2006-53. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 1. First Readin� of an Ordinance for a Text Amendment, TA #06-02, bv the Citv of Fridlev, to Amend Chapter 6 of the Fridlev Citv Code to Substitute Members for the Appeals Commission. Councilmember Billings asked how many members were on the Planning Commission. Mr. Hickok answered that there is one chair person and three commissioners at large and three commissions for a total of 7. Councilmember Billings asked for staff to review the entire chapter for inconsistencies. It would be an appropriate time to clean up the language throughout the chapter. Mr. Hickok agreed that this would be a good time to clean up the chapter. This is a City- initiated action. Councilmember Billings asked how many times in the past there were problems. Mr. Hickok replied that in the 13 years he has been employed by the City, there were three to four times Appeals Commission meetings needed to be cancelled due to no quorum. Councilmember Billings suggested that someone be appointed to take over the Planning Commission Chair designee in the event that the Chair is not available. Mr. Hickok agreed and said that one of the conclusions that arose was to have the Chair appoint someone in their absence. Councilmember Billings stated that one of the duties of the Planning Commission is to choose a Vice Chair annually. Maybe the chair or associate chair could serve this purpose and then a designee would not need to be appointed. MOTION Councilmember Billings to table the first reading of an Ordinance a Te�t Amendment, TA #06-02, by the City of Fridley, to Amend Chapter 6 of the Fridley City Code to Substitute Members for the Appeals Commission. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF AUGUST 28, 2006 PAGE 15 11. Informal Status Reports: William Burns, City Manager, requested to make a correction on his consent agenda presentation. He stated that the conference session for the budget was October 17 and it is actually October 16. Councilmember Bolkcom stated that the street project from last year has had sod problems. A fair amount of people are having problems with their sod. Central Landscaping is only under obligation for 30 days to take care of the sod. It was inspected in May and they were to go back to Central Landscaping for resolution. She has not seen so much sod fail in the time she has been on the Council. Possibly Central Landscaping should check what is underneath the sod. In the areas she has checked, there were rocks and dirt under the sod. Possibly the City Manager could discuss this matter with Mr. Haukaas and come back at the ne�t meeting with a resolution for the residents. Councilmember Barnette stated that 3 to 4 residents in the current street project are having the same kind of problems with sod being installed on top of rocks etc. It would be a good idea to research this item. Councilmember Bolkcom stated that three driveways are still not resolved. At least two of the driveways definitely have inferior product. They have a lot of pits and defects. This is not acceptable work for our City residents. ADJOURN: MOTION by Councilmember Barnette to adjourn. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MEETING ADJOURNED AT 9:35 P.M. Respectfully submitted by, Krista Monsrud Scott Lund Recording Secretary Mayor