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11/13/2006 - 00027697CITY OF COUNCIL MEETING CITY OF FRIDLEY NOVEMBER 13, 2006 The City Council meeting for the City of Fridley was called to order by Mayor Lund at 7:30 p.m. ROLL CALL: MEMBERS PRESENT: Mayor Lund Councilmember-at-Large Barnette Councilmember Billings Councilmember Wolfe Councilmember Bolkcom OTHERS PRESENT: William Burns, City Manager Fritz Knaak, City Attorney Scott Hickok, Community Development Director Layne Otteson, Assistant Public Works Director Don Abbott, Public Safety Director Richard Pribyl, Finance Director/Treasurer BOARD OF CANVASS Receive and Certify the Statement of Canvass From the General Election of November 7, 2006. Deb Skogen, City Clerk, stated the general election was held to select candidates for the officers of councilmembers for Wards 1, 2, and 3 and to determine the outcome of the utility rates increase question. State law states City Council must canvass the results within seven days of the election, and there is a seven-day contact period if someone chooses to request a recount. There is not a recount required because there were no losing candidates that lost by less than one-half of 1 percent. There were a total number of 15,559 registered voters at 7 a.m. on Election Day and 1,165 Election Day registrants for a total of 16,724 registered voters. Of that number, 10,664 registered voters cast a ballot in the City, giving the City a voter turnout of 64 percent which is about 10 percent lower than our other general election turnouts. Ms. Skogen stated on the canvass report it shows by precinct the number of ballots that were cast in each precinct. The total number of votes cast for Councilmember Ward 1 for Del Jenkins was a total 1,303 or 44.7 percent of the vote. For Jim Saefke it was 1,610 or 55.3 percent of the vote, thereby declaring Jim Saefke the winner. The total number of votes cast for Councilmember Ward 2, for polores M. Varichak, was 1,642 or 54.9 percent of the vote. The total votes cast for Pam Reynolds was 1,348 or 45.1% of the vote. Thereby, Dolores Varichak was the winner. In Ward 3, Ann Bolkcom received 1,507 votes or 58.7 percent of the vote. Al Stahlberg received 1,061 votes or 41.3 percent. Thereby, Ann Bolkcom was the winner. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13, 2006 PAGE 2 Ms. Skogen stated the utility question failed because the City Charter requires 51 percent of the votes cast at the election. It only received 48.14% of the votes needed. Ms. Skogen stated also because there was a question about voter falloff, she did go back and look at each individual rate to find out what the falloff was. For Councilmember Ward 1 there was a 24 percent falloff, so 24 percent of the voters did not cast a vote for that office. For Ward 2 it was 18 percent, for Ward 3 it was 17 percent, and for the ballot question there was only a 4 percent voter falloff. Councilmember Bolkcom asked how many blank votes were on the ballot question. Ms. Skogen replied there were 468 blank ballots and 33 ballots where they voted "yes" and "no" for an over-vote. Therefore, if you take the "no," the blanks, and the over-votes it would be 5,530 so it received 51.8 percent. MOTION by Councilmember Barnette accepting and certifying the results of the election on November 7, 2006. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. PRESENTATION GIVEN BY SERGEANT JIM MORK ABOUT THE CITIZENS POLICE ACADEMY. APPROVAL OF PROPOSED CONSENT AGENDA: APPROVAL OF MINUTES: City Council Meeting of October 23, 2006 APPROVED. OLD BUSINESS: 1. Second Reading of an Ordinance Amending Chapter 6, Commissions, of the Fridley City Code Providing for Substitute Members on the Appeals Commission. William Burns, City Manager, stated this amendment will allow commission members to fill in for Appeals Commission members when there would not be a quorum. This helps staff to meet the State's 60-day action requirement on appeals issues. Staff recommends approval of the second and final reading of this ordinance. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13, 2006 PAGE 3 2. Second Reading of an Ordinance of the City of Fridley Amending Chapter 11 of the Fridley City Code by Adding a Section Requiring Compliance With All Ordinances and Laws of the City as Well as the Payment of all Outstanding Fees or Charges Due the City Prior to the Issuance of Any License. William Burns, City Manager, stated this ordinance will allow the City to withhold permits and licenses, including building permits and other permits and licenses governed by State law, where the applicant is found to be delinquent in payment of City fees. The amendment would allow the Fire Department to withhold rental licenses in cases where the property owner is delinquent in paying utility bills. Staff recommends Council's approval. WAIVED THE READING OF THIS ORDINANCE AND ADOPTED ORDINANCE NO. 1235 ON SECOND READING AND ORDERED PUBLICATION. 3. Second Reading of an Ordinance Amending Chapter 114 of the Fridley City Code Pertaining to Abandoned Junk or Unsafe Motor Vehicles. and Adopt Official Title and Summary Ordinance. William Burns, City Manager, stated this amendment is to bring the City Code into compliance with State law and current practices used in the removal of junked vehicles. It includes the elimination of references to a City code enforcement officer as we no longer have one per se. The ordinance also revises statute references and eliminates the current requirement that we auction towed vehicles that are not reclaimed. Staff recommends Council's approval. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 4. Receive the Minutes From the Planning Commission Meeting of October 18, 2006. RECEIVED. 5. Receive the Minutes From the Planning Commission Meeting of November 1, 2006. RECEIVED. 6. Approve Extension of a Special Use Permit, SP #05-04, to Allow a Telecommunications Facility at 8290 Main Street (Ward 3). William Burns, City Manager, stated Sprint has asked for the e�tension in order to buy additional time to meet stipulated grading and drainage requirements. Staff recommends Council's approval. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13, 2006 PAGE 4 THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 7. Special Use Permit Request, SP #06-09, by Amtech Lighting Services for Croix Oil Company for an Electronic Changeable Sign at 6485 East River Road N.E. (Ward 3) William Burns, City Manager, stated when the filling station at this location was changed from Spur to BP, Croix Oil Company replaced their 80-square foot freestanding sign. Although they acquired a sign permit, they did not acquire a special use permit for their electronic changeable sign. That problem was identified, the City worked with them, and since then they have applied for the permit that is before Council tonight. Staff recommends Council's approval. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 8. Special Use Permit Request, SP #06-10, by Amtech Lighting Services for Holiday Station Stores, for an Electronic Changeable Sign at 5695 Hackmann Avenue N.E. (Ward 2). William Burns, City Manager, stated this would allow an electronic changeable gas pricing section on an existing pylon sign. Staff recommends Council's approval. APPROVED. 9. Resolution Approving a Plat, P.S. #05-08, Gateway West 2"d Addition, by Blue Print Homes, for the Purpose of Creating Nine Single Family Lots, Generally Located Between 57t'' Place ad 59t'' Avenue and 3rd Street and University Avenue N.E. (Ward 3). William Burns, City Manager, stated the preliminary plat for the entire Gateway West Project was approved by Council in November last year. They subsequently discovered title problems for a property south of 59th Avenue and proceeded to divide the plat into north and south subdivisions. The title problems have been addressed and the City is awaiting approval of the corrections by the Anoka County surveyor. Staff recommends Council's approval. Dr. Burns stated Council's approval of the final plat and completion of the surveyor's work will enable the HRA to convey the lots in this section to Blue Print Homes, the developer for Gateway West, by the end of 2006. ADOPTED RESOLUTION NO. 2006-76. 10. Resolution to Vacate Portions of 3rd Street, 57t'' Place, and 57 �/z Avenue, Generally Located Between 2 �/z Street and University Avenue, in Order to Accommodate the Gateway West Redevelopment Project (Vacation Request, SAV #06-02, by the City of Fridley Housing and Redevelopment Authority) (Ward 3). FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13, 2006 PAGE 5 William Burns, City Manager, stated the vacated property includes drainage and utility easements and small pieces of easements that remain in portions of 57 '/z Avenue. These street segments were vacated several years ago. This land is being vacated to accommodate the creation of the new residential lots in Gateway West 2"d Addition. The Planning Commission reviewed the street vacation request at their October 18 meeting and recommend approval. Staff recommends Council's approval. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 11. Resolution Ordering the Preliminary Plans, Specifications, and Feasibility Report on the Matter of Construction of Certain Improvements: Neighborhood Street Improvement Project No. ST. 2007 — 1. William Burns, City Manager, stated this action clears an oversight that occurred in June concurrent with Council's approval of a contract with SEH to perform these services. Staff recommends Council's approval. ADOPTED RESOLUTION NO. 2006-78. 12. Resolution Receiving the Preliminary Plans, Specifications, and Feasibility Report and Calling for Public Hearing on the Matter of Construction of Certain Improvements: Neighborhood Street Improvement Project No. ST. 2007 — 1. William Burns, City Manager, stated the plans, specifications, and feasibility report are for a project that encompasses 3.7 miles of neighborhood streets in two neighborhoods and also encompasses the southwest half of Melody Manner and an area southwest of Fridley High School. Staff recommends Council's approval. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 13. Resolution Authorizing Changes in Appropriations for the 2006 Budget for September through October 2006 William Burns, City Manager, said the changes for the most part represent revenues and expenditures associated with various grants and donations. There is, however, one revenue adjustment associated with the incorrect posting and market value homestead credit assistance to the Springbrook Nature Center. Staff recommends Council's approval. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 14. Approve 2006-2007 City of Fridley Snow Removal Operations Policies and Procedures. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13, 2006 PAGE 6 William Burns, City Manager, stated the policies and procedures provide an overview of the equipment, responsibilities, plowing and sanding policies, districts, emergency procedures and other responsibilities. There are no significant changes. Staff recommends Council's approval. APPROVED. 15. Receive Bids and Award Contract for the Construction of Two Rescue Trucks for the City of Fridley Fire Department. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 16. Appointment to the Fridley Housing and Redevelopment Authority. William Burns, City Manager, stated the City Council recommends the appointment of Steven Billings to the vacancy on the Fridley Housing and Redevelopment Authority. The term expires on June 9, 2010. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 17. Claims (129042 — 129239). APPROVED. 18. Licenses. APPROVED THE LICENSES AS SUBMITTED AND AS ON FILE. 19. Estimates. APPROVED THE FOLLOWING ESTIMATES: Shank Construction 3501 — 85th Avenue North Brooklyn Park, MN 55443 Fridley Commons Park Water Treatment Plant Upgrade FINAL ESTIMATE ....................... $ 5,000.00 Midwest Asphalt 5929 Baker Road, Suite 420 Minnetonka, MN 55345 Mill and Overlay 2006 — 2 Estimate No. 1$ 184.903,24 FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13, 2006 PAGE 7 Midwest Asphalt 5929 Baker Road, Suite 420 Minnetonka, MN 55345 3rd Street Project 2006 - 3 Estimate No. 1 ................................. $ 22,093.96 Greystone Construction Company 500 S Marshall Road, Suite 300 Shakopee, MN 55379 Salt and Sand Storage Building Estimate No. 1 ................................. $ 42,731.95 Park Construction, Inc. 500 — 73rd Avenue N.E., Suite 123 Fridley, MN 55432 Street Improvement Project No. ST. 2006 - 1 Estimate No. 7 ................................. $ 139,658.45 Concrete Idea, Inc. 13961 — 44th Lane N.E. St. Michael, MN 55376 2006 Miscellaneous Concrete Repair Project No. 365 Estimate No. 5 ................................. $ 25,725.85 MOTION by Councilmember Barnette to approve the consent agenda as presented with the removal of Items 1, 3, 6, 7, 10, 12, 13, 15 and 16. 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, 3, 6, 7, 10, 12, 13, 15 and 16 from the consent agenda. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. OPEN FORM (VISITORS): Pam Reynolds, 1241 Norton Avenue, asked if the City was going to continue to participate in the Livable Communities Act. She also asked if dates had been set to review and revise the Comprehensive Plan. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13, 2006 PAGE 8 Scott Hickok, Community Development Director, stated staff will have a calendar for Council to review and dates will be determined based on availability for meetings. They do have a calendar outlined between now and December 31, 2008, when the Comprehensive Plan needs to be approved, and they have a range of time when the public meetings will be held. The meetings will be publicized. Mr. Hickok stated as clarification, Ms. Reynolds talks about needing to re-up annually with the Metropolitan Council to stay involved with the Livable Communities Act. That is not a requirement anymore and has not been for the last several years. Instead, what the Met Council has asked cities to do is to opt out of it. Councilmember Barnette asked how many cities participate in the Livable Communities Act. Ms. Reynolds replied 107 in the seven-county metro area. Councilmember Bolkcom said the last time they held meetings on the Comprehensive Plan, there was very poor participation. Individual invitations were sent out in different areas of the city, and probably 1 percent of the community participated. Mr. Hickok said this year, they are trying to schedule as many meetings as possible. 12. Resolution Receiving the Preliminary Plans, Specifications, and Feasibility Report and Calling for Public Hearing on the Matter of Construction of Certain Improvements: Neighborhood Street Improvement Project No. ST. 2007 — 1. Councilmember Bolkcom asked for a summary of the meeting and asked if staff could summarize what they have learned in the last couple of years and what kind of things they were doing differently. Layne Otteson, Assistant Public Works Director, stated they had a neighborhood meeting and 65 residents attended. It lasted about 1'/z hours. Topics ranged from assessments, construction practices, access issues, and communication with residents. The meeting was an opportunity for them to meet with the residents, hear their concerns, and address their concerns. It also helps them through the design process to deliver a better project. Mr. Otteson stated with respect to the sod issue, they looked at what some of the issues were over the last couple of years. What they learned is that oftentimes the soil that is put down for the sod is not the greatest soil. It does meet specifications, so if they want to put down a better top soil, they are going to have to change the specifications. It will add costs to the project. Watering the sod is also important. The contractor is required to water it for 30 days and maintain it. After that, the residents need to assist in watering and help maintain it. They will need to communicate better with the residents. Councilmember Bolkcom said one other question that has seemed to come up in the last two years is where driveway cuts are going to be. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13, 2006 PAGE 9 Mr. Otteson replied when they line the driveway curb cuts up, they look at the existing driveway and those edges define where those curb cuts are going to be. The problem they generally run into is elevation issues. They try to put the curb lines real close to where they were. Oftentimes their design perimeters lead them down a path where to improve the drainage, they have to make more elevation adjustments. They do talk to homeowners about any issues. Councilmember Barnette stated over the past two projects the City has done, they have offered participation from the City on the driveways, for funding, etc. He asked if they would be doing that on the ne� project. Mr. Otteson said that is correct. They are going to discontinue that. It has involved a lot of staff time in the past. Councilmember Barnette asked if that was brought up at the meeting. Mr. Otteson replied, yes it was. They discussed it with those present at the meeting and let them know that the City would not be doing that. MOTION by Councilmember Bolkcom to adopt Resolution No. 2006-79. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 7. Special Use Permit Request, SP #06-09, by Amtech Lighting Services for Croix Oil Company for an Electronic Changeable Sign at 6485 East River Road N.E. (Ward 3) Councilmember Bolkcom asked what happened with this special use permit request. Mr. Hickok replied petitioner did not realize they would need a separate special use permit for the electronic reader board portion of the sign. They made an application for a sign permit, it came in and was reviewed. It was reviewed and made it through the process without recognition that a piece of it was going to be an electronic reader board. After that was recognized, staff contacted the petitioner who contacted Amtech, and the petitioner got the information that was necessary to start the special use permit process. They did what was necessary on the sign itself, and it was not their fault the sign was installed without a special use permit on the electronic reader board. It was an error made by staff which is being rectified through this process this evening. MOTION by Councilmember Bolkcom to approve Special Use Permit Request, SP #06-09, by Amtech Lighting Services, with following three stipulations: Petitioner shall obtain sign permit and current sign erector license prior to installing any signage on site. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13, 2006 PAGE 10 2. Message on L.E.D. section of sign cannot change more often than allowed by City Code. 3. Message on L.E.D. section of sign can never flash or have motion that may distract vehicular traffic in area. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. PUBLIC HEARING: 20. Consideration of an Intoxicating Liquor License for Baggan's Pub, 3720 East River Road N.E. (Ward 3). MOTION by Councilmember Bolkcom to waive the reading of the public hearing notice and open the public hearing. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE PUBLIC HEARING OPENED AT 8:23 P.M. Richard Pribyl, Finance Director, stated as people will recall this is the old Sha� location. The building has been acquired by William Bisek of JWBB Incorporated, d/b/a Baggan's Pub. The business will operate as a restaurant on one side and as the Oops Dinner Theater and Banquet Center on the other side. The Police Department has reviewed the request and provided Council an outline of the findings as a result of the background investigation. Staff felt these findings did not provide a basis on which to deny the license request. Staff has provided a copy of the City ordinance that provides the guidelines that go along with the license to Mr. Bisek The notice of public hearing was published in the Sun-Focus on October 26. Staff became aware today of a significant number of deficiencies related to the building that have been identified by the Anoka County Health Department and the City of Fridley Mechanical Building Inspector. Staff recommends that the final approval for the license be presented to Council only after satisfactory completion of those items outlined in the November 2 letter from the Anoka County Health Department and also to be signed off by the City's Building Mechanical Inspector. MOTION by Councilmember Bolkcom to receive a copy of four-page letter dated November 2, 2006, addressed to William Bisek, faxed to the City from the Anoka County Community Health and Environmental Services Department. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Councilmember Bolkcom asked Mr. Pribyl to summarize the letter. Mr. Pribyl replied this is a letter that actually went to our Building Inspector from the Community Health and Environmental Services Department for Anoka County. It stated that a FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13, 2006 PAGE 11 number of corrections had to be taken care of prior to any food and beverage license being issued through Anoka County. Different areas that needed to be taken care of were identified in the letter. Councilmember Bolkcom asked if Venetian Inn had a catering license from Anoka County. Mr. Pribyl stated he did not know for sure, but has heard that they are operating there. Councilmember Bolkcom asked what types of things would prevent Mr. Bisek from receiving a liquor license. Don Abbott, Public Safety Director, replied under City ordinance and also State statute, there are certain specific conditions that would make a person ineligible for a liquor license, and there is a background investigation of a licensee to determine if any of those conditions are present. They did find some violations and included them in their memorandum. Councilmember Bolkcom asked if the license was granted, would it come back in April. Mr. Pribyl stated in April they would actually see that as a renewal. Councilmember Bolkcom asked has Mr. Bisek been told about the food-to-alcohol ratio. Mr. Pribyl replied, yes, he is. Councilmember Bolkcom asked Mr. Bisek about the catering and for an update. William Bisek, JWBB, Inc., stated they have been in the process for the last six weeks of a pretty e�tensive remodel of the facility. In the process, they have uncovered many discrepancies with the building. Because of the time frame for the Oops Theater Company which is right now coming into their busiest part of the season, they have been concentrating on the part of the building which used to be the old nightclub side to get it remodeled into a dinner theater setting. They have also been working with the Anoka County Health Department and have remodeled a portion of the kitchen to their specifications so that it can be used as a staging area for the food and beverage service during the performances until they get the entire building up to code. Councilmember Bolkcom asked if they are bringing food in. Mr. Bisek replied, yes, it is being catered by Joe Vitale with the Venetian Inn out of Roseville. Councilmember Bolkcom asked if there is a current catering license. Mr. Bisek replied yes. He has one posted at the facility. Councilmember Bolkcom asked if there was a catering plan. Mr. Bisek replied, yes. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13, 2006 PAGE 12 Councilmember Bolkcom asked Mr. Bisek if he was aware of all the items contained in the letter. She asked when he thought they would be completed. Mr. Bisek stated, hopefully, within a couple of weeks. They have gotten a lot done. Councilmember Bolkcom asked if he had met with the building inspector and fire inspector. Mr. Bisek said he has been working closely with them. Councilmember Bolkcom asked if he stilled owned Kelly's Corner in Centerville. Mr. Bisek replied, no, he sold that in May. Councilmember Bolkcom asked if that establishment was something similar to what he is going to have. Mr. Bisek replied Kelly's was a catchall. The average age of the customer could be 6 months to 96 years, and it was a small town, family-style restaurant/sports bar with volleyball courts. It was pretty much the gathering place for Centerville. Councilmember Bolkcom asked what age group he wanted to attract here. Mr. Bisek replied the demographics for the theater and for the sports bar also is going to be in the 25 to 50 range. Councilmember Bolkcom stated the last establishment that was there had a lot of issues. A lot of police time was spent there. She asked how he planned to handle any crowds. She the memorandum from Mr. Pribyl indicated that there were some issues related to the sale of tobacco and alcohol to minors by people who worked for Mr. Bisek She said that would not be tolerated. Mr. Bisek replied all his staff in the past and in the future will be required to take an alcohol awareness class that is offered by the hospitality industry. It is very e�tensive and very knowledgeable. He does not know if the City of Fridley recognizes that class as acceptable. The employees are also required to take a refresher class. If an employee fails a compliance check, their job is immediately terminated. They do take it seriously and will continue to take it seriously. He does not anticipate any problems whatsoever with the compliance with the State. Councilmember Bolkcom asked if he was aware of the 60/40 food to alcohol ratio. Mr. Bisek said he was aware of that and did not feel there would be an issue. Councilmember Bolkcom asked him if he plans on staying open until2 a.m. Mr. Bisek replied, yes. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13, 2006 PAGE 13 Councilmember Bolkcom asked if there are intoxicating beverages being served right now on the theater side. Mr. Bisek replied, through Joe Vitale's catering license. The State offers caterers who have a liquor license at an establishment to purchase a caterer's liquor license where they can then bring in alcoholic beverages to sell at a different site. William Burns, City Manager, stated the City has had significant problems with illegal outdoor storage of tractor-trailers. He also asked what they would be doing about the parking lot. Mr. Bisek stated because of the time of the year, it is just not feasible to do the repairs to the parking lot. For the time being they used some reclaimed asphalt and filled all the bad potholes until spring when they can repair the driveway properly. Dr. Burns asked if the tractor-trailers are gone for good. Mr. Bisek replied, yes. The previous owner had rented the parking lot to the trucking company across the street. They have been gone a few weeks. Councilmember Billings stated currently the Vitales are catering in the establishment. He asked if they will be taking over the kitchen operation on-site or if they will continue to cater? Mr. Bisek said they do not know for sure. Councilmember Billings asked if he was purchasing the building or leasing the building. Mr. Bisek said he bought the building and the property. Councilmember Billings asked if there were multiple participants in the company. Mr. Bisek replied, no, just himself. Councilmember Billings asked if he had purchased the building from Mr. DeFoe. Mr. Bisek replied, yes. Councilmember Billings stated he assumed he was acquainted with Mr. DeFoe since his operation and Mr. Bisek's Centerville operation were just a few blocks apart. Mr. Bisek replied, yes. Councilmember Billings commented he has been a customer at Kelly's Inn and it did appear to be a well-run operation. However, the after-hour sale does concern him. Mr. Bisek asked to let him address that tonight. They had two serving after-hour violations. One was probably three or four years ago. The two people in the building were an employee of FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13, 2006 PAGE 14 his and the other one her boyfriend. He was sitting there waiting for her to cleanup so they could leave. He always encourages having a male with his female bartenders leave at that time of the night for safety reasons. He had not finished his beer and it was still sitting on the bar when the Police Department came in. He is not making any excuses. It was wrong. A year ago, they got a serving after hours that was not a serving after hours. It was at 1:09 a.m. and he had a 2 a.m. liquor license. The Police Department came in and said that they wrote the two bartenders a ticket for serving after hours. He was made aware of that the following morning. He reviewed the security tapes to make sure. He talked with the Centerville Police Chief and explained the problem. The case was subsequently discharged. Serving after hours is something he does not condone and he will not tolerate. He does use security tapes, and does watch for that type of thing. He said he can guarantee them there will not be a serving after hours violation. Councilmember Billings stated they have established he is buying the building and the real estate, the parking lot, through his limited liability building and he is turning around and leasing the southern portion to a corporation that will be the operator of the sports bar. Mr. Bisek replied Baggan's Pub. Councilmember Billings asked if there was more than one principal in that corporation. Mr. Bisek replied, no. Councilmember Billings asked who he was leasing the northern portion to. Mr. Bisek replied Joe Vitale and Oops Theater. Councilmember Billings asked if Oops Theater was a partnership. Mr. Bisek said it will be a three-way lease. Councilmember Billings asked what part he will have in that particular space. Mr. Bisek replied he will be doing the beverage service. Councilmember Billings asked so it will be a lease between his corporation or with him personally. Mr. Bisek replied with his corporation, with Oops Theater, and with Joe Vitale. Councilmember Billings asked if Mr. Vitale will be providing the food for the theater and who will be providing the food for the sports bar. Mr. Bisek stated he will be doing the food service for the sports bar. Councilmember Billings said his corporation is going to be providing the food for the sports bar. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13, 2006 PAGE 15 Mr. Bisek replied, correct. Councilmember Billings asked then the Vitales will be providing the food for a separate operation that is the dinner theater. Mr. Bisek replied, yes. Councilmember Billings stated he is not sure the food sales in the theater will count towards the food sales necessary to make the 60/40 requirements in the bar operation because they appear to be two separate operations. Mr. Bisek replied he anticipates no problems reaching the 60/40 percent in the sports bar. Councilmember Billings said he just thought this was something he should seriously consider. The other concern he has is that the City's ordinance spells out where the liquor establishment is and where the service area for that liquor establishment is. He asked if there was a problem with the liquor service area since the theater management is different from the bar. He said he was wondering if Mr. Bisek is getting himself into a leasing quagmire where they have problems with not being able to service the liquor in one area. He asked if the City ordinance spells out the areas of liquor service and, since the dinner theater is being leased to entities other than the on- sale liquor establishment itself, if there would be any problems. Director Abbott stated his interpretation he believed based on our ordinance is in this particular instance, once the license is granted for the premise (and certainly they have had a history of reviewing the entire premise) that would include both sides of that building occurring under Mr. Bisek's license. Councilmember Billings so the ordinance does not then spell out certain square footage, it would be the entire footprint of the building? Director Abbott replied as part of the licensing process, the City does require information concerning where in the premise they plan on selling their alcohol. He believed the language regarding the entire premise is in any structure adjacent to, connected to, or attached to the original licensed premise. Basically, that would prevent those circumstances where somebody would take a property, perhaps put a glass window wall down the center of it and say one side is for alcohol, the other side is for other activities that would not be allowed in the alcohol establishments and basically split the premise into the two separate premises. Councilmember Billings asked Mr. Bisek if he was purchasing this property on a contract for deed. He wanted to make sure Mr. DeFoe did not have a financial interest in this operation. Mr. Bisek assured them that Mr. DeFoe doe not have any interest whatsoever. He is working with a mortgage company right now to attempt to finance it. If for some reason that falls apart, Mr. DeFoe has agreed to carry a contract for deed with a substantial down payment and a balloon in three years. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13, 2006 PAGE 16 Councilmember Billings so then his only financial involvement would be that as a fee owner of the property and, therefore, a contract holder. Mr. Bisek replied, correct. Councilmember Billings stated he would not be participating in any split share of the revenues, only those proceeds that are necessary to fulfill the requirements of the contract for deed for purchase. Mr. Bisek replied, correct. Councilmember Barnette asked with the many difficulties that they had with the previous establishment, especially after hours in the parking lot, he asked if the City had any regulations regarding outdoor cameras to survey the parking lot. He asked if Mr. Bisek was going to have cameras in the parking lot. Mr. Bisek replied said he did intend on having cameras for the outside. Councilmember Barnette asked if City ordinance required that at liquor establishments. Director Abbott said there was no requirement. It is a recommendation they make. Councilmember Bolkcom stated she was going to recommend that the public hearing be continued until their December 4 meeting to allow him time to work on the issues that have been brought up. Mayor Lund stated he also has just a slight reservation regarding the food license. Mr. Bisek stated they did have the Health Department come out about two and a half weeks ago and do their pre-inspection. The facility has been neglected quite a bit but it can be brought back up to Code and become a valuable business for the City of Fridley. Councilmember Billings stated our ordinance says that the City can issue on-sale liquor licenses to bowling alleys and to restaurants. A definition of a restaurant is an operation under the control of a single operator that has cooking facilities and regularly sells food. So Mr. Bisek may want to take a close look at the City's definitions and make sure that his lease agreements are not going to put him in conflict with any City ordinances. He asked Attorney Knaak if it would be appropriate for Mr. Bisek's attorney to confer with him. He asked how that worked. Attorney Knaak replied the City has always been willing to answer questions as they relate to code issues on the part of applicants. Unless instructed otherwise, if he were called, he could address some of these issues. Mr. Bisek replied he will be meeting with his attorney tomorrow morning, and he will mention that to him. He is in the process of wrapping up all the contracts right now. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13, 2006 PAGE 17 Councilmember Bolkcom asked City staff and the City Attorney to look into the points brought up regarding the 60/40 ratio. MOTION by Councilmember Bolkcom to continue the public hearing on the consideration of an Into�cating Liquor License for Baggan's Pub, 3720 East River Road N.E. until December 4, 2006. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 21. Consideration of Neighborhood Street Improvement Project No. ST. 2007-1. MOTION by Councilmember Bolkcom to waive the reading of the public hearing notice and open the public hearing. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE PUBLIC HEARING OPENED AT 9:08 P.M. Mr. Otteson stated this is the annual street reconstruction project. He said they were doing this project for several reasons. It is part of our annual street reconstruction project program. They are seeing increasing costs and maintenance and repairs with the age of the streets. They are putting an emphasis on streets without concrete curb and gutter. They perform an annual condition rating which provides an indication of where the streets are that need attention the soonest. They group streets into project areas based on the ratings and the bituminous curb in the areas. They will also be using the excess materials from this project to improve the softball fields at Community Park They are going to replace the existing streets with a new aggregate base and pavement surface. They will replace the existing bituminous curb with new concrete curb and gutter. They will upgrade and repair miscellaneous utilities such as hydrants, sections of water mains, sections of sanitary sewer, storm sewer inlets, and piping. As they move along on the street area, they will restore the boulevards with sod and landscaping. They also replace private water sewer services. They have also regraded the softball fields. Mr. Otteson stated the location of the street work falls into two areas. The one area is south of the hospital, including the streets of Lyric, Temple, Melody, Concerto, Memory, and Ballet Boulevard. The other area includes streets from 63rd Avenue on the north edge all the way down to the I-694 service drive and the streets in between. Mr. Otteson stated the Community Park softball field will be lifted up about two feet at home plate and then tapered out to the outfield to match the existing fence line. The material that they will be using will be coming from the excess on the street work They will also be upgrading the fence, electrical, and sprinklers, and there will be other miscellaneous work that will be needed as they go through the design process. They will be working on Fields 1 and 2 on the north side. The project schedule is approximate. They are going to open bids in March, 2007, and construction will begin in May, 2007. Construction will be completed in approximately October 2007. The public hearing to set the assessments will also take place in October, and the assessments will begin in January, 2008, on the property tax roll. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13, 2006 PAGE 18 Mr. Otteson stated every project brings up issues and some of these construction issues are project communication with residents. They are going to continue to work on that. Staff understands that it is important to communicate with residents and work with them on any problems. Mr. Otteson stated the residential assessment policy is based on the length of the adjusted front footage which is measured across the property a distance of 35 feet from the front property line and that is on the address side. All work associated with installation of concrete curb is assessed. If concrete curb already exists on the address side of the property, there will be no assessments to the property. Assessment costs will be no more than $25 per front foot. There are three options for payment: (1) Pay a lump sum within 30 days of the assessment hearing after the construction, (2) Add it to your property taxes that are paid over 10 years with an interest rate of approximately 7 percent. That interest rate is set each year, and it may change. (3) Senior citizens meeting certain criteria may request to have the assessment deferred until the future sale of the property. Interest does accrue until the sale. Mr. Otteson stated if a resident would like to know what the assessment would be per year, they could call and they could break it down for them. Their opinion of probable cost breaks down into six different items. The first item is streets: $2,990,000; sanitary sewer, $100,000; storm sewer, $130,000; water main work, $210,000; Community Park, $280,000; natural gas removal, $90,000. The grand total is $3,800,000. They will be reimbursed by Center Pointe Energy for the natural gas removal. Mr. Otteson stated the funding sources for this project also comes from various funds. The first funding source is Minnesota State Aid. They get $325,000 as a project. Special assessments: $650,000 — those would be the assessments for the curb from the property owners. Sanitary fund will pay for the sanitary work at $100,000; storm water fund, $130,000; street fund, $2,385,000; water fund, $210,000; and a grand total of all those funding sources is $3,800,000. Councilmember Barnette said Fridley gives a pretty good deal. A reminder that residents are only paying for curb and gutter. Money has been set aside over the years by councils for these projects. He believes they have two years left on projects to hopefully complete all of the streets for the City of Fridley so they will have concrete curb and gutter. Councilmember Wolfe stated the town of Spicer did a road project and those people were assessed on the average $18,000 to $22,000 for the road project in front of their house. The local newspaper stated a lot of people were moving out of Spicer because of that. Fridley has done an incredible job at keeping the costs down. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13, 2006 PAGE 19 Councilmember Bolkcom asked about whether the gas lines are the first thing that happens? Mr. Otteson stated that is correct. Councilmember Bolkcom asked if they will have a construction blog on the website. Mr. Otteson replied, yes, they would. They had a blog this summer and it turned out to be successful, so they will continue to do that. Jerry Radcliffe, 7350 Memory Lane, stated a lot people in his neighborhood are worrying about how they are going to get out. He asked them to talk to the residents about that. Mayor Lund replied it definitely will be an inconvenience to some e�tent because the road will be gravel but they are still passable. He asked Mr. Otteson if there is a time when residents will not be able to access their homes and may have to park at the end of the block. Mr. Otteson replied there are some times when it will be inconvenient. When someone needs to get their vehicle in or out, such as in a handicapped situation, they can talk to the contractor. When they are digging in front of driveways, there is probably a couple of hours where it will not be accessible. When they are doing the paving and the curb work, they can work around that a little bit. If someone really needs to get out for whatever reason, they will get them out. It may take a couple of minutes, but that contractor will mobilize immediately. Councilmember Bolkcom said to make sure they give their address to Mr. Otteson if they have special considerations. Mr. Otteson said they really do try to put a lot of emphasis into project updates and newsletters. He strongly encouraged residents to keep calling him. Joanne Zmuda, 6051 Fourth Street NE, said she did attend the neighborhood meeting they had and has watched the Council meetings where other people have voiced their opinions on other projects. She also has heard from a few members of the Fridley Concerned Citizens who lived in the area of the 2006 project. Some of them, this is in the minority, stated the crew from Park Construction were arrogant and rude. She does not know whether rebar at the end of the driveway is part of the contract but she knows a couple of them said that there was no rebar at the end of the driveway which is going to be a problem as time goes on. She realizes that improving our streets and our infrastructure is really important and the cost of the projects really puts a huge financial burden on some of citizens who are on limited and shrinking incomes. She is aware that there are three financial plans in place to help citizens pay for their costs, but unless you pay the costs right away the two remaining plans are not very attractive. Interest will be accruing over ten years or until the property is sold, and that can get to be very expensive. She said that when the bid was let for the 2006 contract, Park Construction was awarded the contract even though they were not the low bidder. She remembered that they were given the contract because they had a good relationship with the City. A good relationship with the City is not good enough when she pays for part of the cost. The lowest bid is what she wants if it is given by a reliable company. She hopes Council will keep this in mind when they award the 2007 contract. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13, 2006 PAGE 20 Mayor Lund asked said he thought they would not routinely do something other than award it to the lowest bidder, unless there was good cause. Mr. Otteson stated Park Construction was the low bidder on the project, and they were awarded the project as the City is required to do. If they do not do that, they can expect a lawsuit. He said with respect to the rebar at the end of the driveway, there are two ways you can do a driveway. You can go with a thinner thickness of concrete and put rebar in which is real expensive or you can use a wire mesh. The other option is to go thicker and bypass steel which oftentimes ends up at the bottom of concrete. Oftentimes they have pulled up concrete that had steel in it, and the wire mesh is on the very bottom of the concrete. They elected to go thicker and have had very good results over the last five years. They do have panels that crack because concrete just cracks randomly, and they do the best they can with control joints. Putting rebar at the end of a driveway with the 6-inch concrete would only work if they spent quite a bit of money, and it costs a lot of money, to put what is called chairs to keep the rebar up into the concrete. They do not see the benefit in that. Mr. Otteson stated regarding poor workmanship and arrogance, every project we have there are always issues--whether it is concrete or sod. Those are things that they talk to the contractor about. They hope to hear from resident about any problems. A list is prepared and given to the contractor. If the contractor does not correct the problem, the punch list does not get completed and they do not receive final payment. There are some built-in protection items to ensure we get better workmanship and just get a better project, and it is not closed out until they are satisfied. Councilmember Wolfe said he thought there was a time when they did not award a contract to the lowest bidder. Mr. Otteson stated when Park was awarded the contract, they had a few contracts with them over the years and the projects were closed out appropriately and there were no lawsuits, no issues, things were fine. Their work was acceptable. What he thinks the Council was referring to was miscellaneous concrete where they replaced concrete panels on the street, sidewalks, and curbs throughout the City. They had to really work with the contractor. MOTION by Councilmember Bolkcom to continue the public hearing related to Neighborhood Street Improvement Project No. ST. 2007-1 until December 4, 2006. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING MOTION CARRIED UNANIMOUSLY CONTINUED AT 9:42 P.M. NEW BUSINESS: AYE, MAYOR LUND DECLARED THE AND THE PUBLIC HEARING WAS 22. First Reading of an Ordinance of the City of Fridley, Minnesota, Repealing Ordinance No. 1095, an Ordinance that Adopted the Prevailing Hours of Labor and Prevailing Wage Within the City of Fridley on Certain Projects on or with the City, and any Rules and Regulations Promulgated Thereunder. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13, 2006 PAGE 21 Councilmember Wolfe stated part of the reason he brought this up was because he has been listening to Dr. Burns and Council about how many different ways the City's budget has been cut by the State. Since he has brought this up, he has understood for any project that is partially funded by the state or the federal government the City needs to pay prevailing wages. A couple of years ago, they had a bid for 20 light posts to be painted and it was going to be $54,000. He tabled the issue and priced it out as a contractor himself at the time. He would have profited $47,000 in five days. His thought was, on these smaller projects that are not funded by the government, can we truly open that to the small guy. Councilmember Barnette has commented that it is killing the middle contractor if we get rid of prevailing wages. If he would have been one of the small middle class contractors, he would have bid the job at a certain price and would have been happy with it. He thought that on the smaller jobs, the City could actually shop. People have said we need to run the City like a business. Sometimes they have to spend their money as a homeowner would and not pay three or four times the price on something if we could get it cheaper. If a company is willing to come in and bid a job for the City on a smaller project and they are insured, are a reputable business, and below the prevailing wage that the government demands we pay, why not let them have those jobs. Councilmember Barnette asked what is required of the City with regard to prevailing wage ordinances. Mr. Knaak replied the City is required to pay the prevailing wage on all projects that are done with part state or federal funding. That would include, for example, any projects done on roads where there are state funds involved. It will also permit the City to adopt its own ordinance for prevailing wages in instances where that may not apply. It is a permissive kind of legislation that cities are allowed to do, and this City adopted a resolution. This is not something the City is required to do. He cannot tell them what percentage of contracts would be covered by this. Most major Public Works projects the City would be involved with would have some form of State aid associated with them and, in those cases, the prevailing wage would have to be paid whether this ordinance was there or not. Councilmember Barnette asked how the term "prevailing wage" was established. Attorney Knaak replied that was established based on studies he believed done by the State of Minnesota based on calculations as to what the averages are for certain kinds of employment or trades. Councilmember Wolfe stated it was his understanding that most of them are set by a union scale. Attorney Knaak replied technically they are adopted by the State, and the State reviews those on a fairly regular basis. He said they may not necessarily be union scale. Councilmember Billings asked Councilmember Wolfe in reference to a painting contract of some semaphores and light fi�tures, if he had employees at that time, approximately what would he have been paying them per hour. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13, 2006 PAGE 22 Councilmember Wolfe replied, $25 an hour. Councilmember Billings asked about how long ago that was. Councilmember Wolfe said a few years ago, it was on an agenda, and he called MnDOT and asked them what type of paint they used. Councilmember Billings stated he assumed with the cost of living that he would be paying employees about $27.50 per hour now. Councilmember Wolfe replied, yes. Councilmember Billings asked if he knew what the prevailing wage for a painter on highway and heavy on the Department of Labor prevailing wage form is for Anoka County. In the metropolitan area the prevailing wage happens to be fairly close to union scale because the predominant amount of work is done by people who are members of the union. You get into certain areas of out-state Minnesota and it is very different than union scale. Councilmember Wolfe said he had no idea. Councilmember Billings replied, $29.35. Not a whole lot of difference than the wage Councilmember Wolfe is talking about. Councilmember Wolfe is talking about this project that could have been done in a week, three employees, working 120 hours, even if the prevailing wage was $20 an hour more than what he is talking about, he is talking $2,400 difference. Councilmember Wolfe replied at $25 an hour or at the prevailing wage. Actually, $38 per hour was the union wage on the homes he was doing. He would have bid it for the same amount of hours, same amount of inen, and it would have been $2,000 less just for hours. That does not include materials, that is just labor. Figuring in the cost of material and everything, he roughly would have profited $47,000 on that job. Councilmember Billings asked would he not agree that the predominant factor here is not the amount of wage the contractor is paying to his employees but the amount of markup the contractor is taking. So because you have a contractor who is taking that kind of markup, assuming that was all profit, he thinks it should be laid at the feet of the people who are out there doing the work, providing them with something less than a reasonable wage and, if they have families, then what happens. The families end up with the County paying for social services or you and I paying through our State taxes for medical benefits for them. You do not just go out and put up a 12-foot ladder and do the painting. You have to block off the streets, and there are OSHA requirements. There are other elements that are there. Councilmember Wolfe replied, right. He would say most of the painters he worked with probably made $15 an hour. He charged more because he worked on the higher end homes and they were willing to pay it. He set the market for himsel£ It seems like everything the City does, they pay more than it would cost in the free market. If there are projects that can be done at a lower rate and someone wants to bid it that way, why should the City say no. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13, 2006 PAGE 23 Councilmember Billings asked Councilmember Wolfe if he has read the requirements for prevailing wages in the City of Fridley. Councilmember Wolfe replied he read most of them--the ones that Attorney Knaak sent him. Councilmember Billings asked him if he read the ordinance itself. Councilmember Wolfe replied, parts of it. Councilmember Billings asked if there is a base dollar amount in that ordinance that says work done for under this much does not need to be prevailing wage. Councilmember Wolfe replied he did not get that far. Councilmember Billings stated he does not have the ordinance in front of him, what he has is the language to repeal it but it seems to him there is a base dollar amount in that ordinance that establishes just what he is requesting. Those jobs that are small jobs, like painting a room, would come in at a dollar value that would not require prevailing wage. He asked Attorney Knaak if he had the ordinance available. Again he has no idea because he is not a painting contractor nor is he familiar with OSHA requirements and stuff like that, but he believes there is more to it than just the cost of the paint and the cost of the employee. Councilmember Wolfe stated he thought he brought this up for discussion and this ordinance that Dr. Burns wrote is not his wording. Councilmember Billings asked if he wanted to get rid of prevailing wage. Councilmember Wolfe replied, not totally. He knows we cannot. If we are going to run the City like a business, maybe the City should be a little bit more frugal on that part. If our numbers add up mathematically with the wage that we semi-agree with--$27.50 or $29--where did the other $30,000 to $40,000 from. Councilmember Billings replied he would assume there is a secretary and maybe a mechanic keeping the trucks running, and there is the owner of the company. Councilmember Wolfe stated which is where the small contractor comes in. He is not paying the mechanic, etc. and he will do it for "this price." Councilmember Billings stated what he is doing is attacking the people who are doing the work, not the people who are making the big bucks. Councilmember Wolfe stated he is kind of attacking the City for paying that. Councilmember Bolkcom anyone can bid the project. She asked Dr. Burns what percentage is paid for insurance, workers' compensation, etc. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13, 2006 PAGE 24 Dr. Burns replied, close to 30 percent. Councilmember Bolkcom replied that is added cost to any contractor. She has a nephew who works in the construction business. He needs to have insurance and they have to pay into social security and workers' compensation. So she thinks that has to be taken into account. She stated to Councilmember Wolfe that over the years she has never once heard him say that he wanted to go back and rebid something because he thought it was outrageous other than a couple of times he said it seems like it seems they are making a lot of money on this. Anyone can bid on most of the bids that go out on the smaller projects. She said she knew he had checked on the signs and things. Councilmember Wolfe said he called about a boom truck, safety signs, sandblaster, priming, and painting with the exact material they were using. Councilmember Bolkcom stated most of their big projects are already under federal and state prevailing wage. Councilmember Wolfe said he was talking about the smaller jobs. Councilmember Bolkcom asked how come some other painter did not snap up those projects. She asked if he called a couple of his friends in the painting business. Councilmember Wolfe replied one of them told him he would not work for a city. He said they are hard to work for. He brought this up to try and save the City money and thought we should take a closer look at this. Councilmember Bolkcom asked Mr. Haukaas when these smaller projects come forward, he basically knows approximately how much time it is going to take to do something and takes that all into account. Since she has been on Council there have been times that if something comes in outrageously higher than they thought it might be, they go back and ask for new bids or look at the project again. Jon Haukaas, Public Works Director, stated especially on the small projects. They have a general idea of what it should cost before they go out and request bids. If it is way out of line from what they are expecting, they do ask for reasons. He said they have walked away from bids in the past. In fact the signal painting project that Councilmember Wolfe is referring to, they did not do because the bids were so much higher. If he remembers correctly, they did not even go to the full advertisement for bids because when they started discussing it and found out what other cities had paid for that kind of work, they were not ready to go there at that point. Most of the projects, especially the small ones, they at least have a general idea of the range of cost. Councilmember Wolfe said the item he is talking about was on the consent agenda for $54,000, and he pulled it from the consent agenda. Mr. Haukaas said he did not believe that once it was pulled and discussed, it would have actually happened. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13, 2006 PAGE 25 Councilmember Wolfe stated the consensus of most people is the government pays too much. When we wanted to build a double gymnasium at the community center, it was $2 or $3 million. Yet a school six gymnasium project for $2 million. Councilmember Barnette stated it is his understanding that Medtronic was built with union labor. Attorney Knaak stated he has a copy of Ordinance 1095. It reads: "This ordinance shall not apply to the following circumstances: (a) any project financed by City funds or bonds authorized by the City as provided in Subdivision (2) that has a value of $25,000 or less or value equal to or less the amount required for seal bids by Minnesota Statutes; (b) any housing project or program in the City directed or marketed for owner occupancy, (c) any housing project or program directed at rental units containing 8 or fewer units; and (d) any residential rehabilitation project regardless of size entirely paid for with non-city funds." Mayor Lund stated Councilmember Wolfe mentioned how we should look at this and how it is coming out of our own pocket, that it would be more frugal if we were not spending taxpayers' money. The Council members are taxpayers as well. There is a bidding process, and we would hope we could get some of those lower bids that Councilmember Wolfe alludes to. He thinks in Councilmember Wolfe's one example on the light poles, on a$54,000 project there was $47,000 so he could have done the job for $7,000 at some point you cannot be getting quality workmanship with paying all of the indirect costs. Insurance is expensive, etc. He cannot see they can be that far off. He understands where Councilmember Wolfe is coming from and he sees Councilmember Billings' point in that who are you helping here if you are going to pay $6 an hour to those painters and it is not a livable wage. He does not want to spend any more money than they actually have to because it can be used in so many other areas. Councilmember Wolfe replied he is guessing that no matter what adjustments they make for this, it is a dead issue. Mayor Lund stated he did not think he could just assume that. If there is some merit in saving money for the taxpayers and himself included he is all for it. MOTION by Councilmember Wolfe to waive the reading of the ordinance and deny the ordinance on first reading. Seconded by Councilmember Billings. UPON A VOICE VOTE, MAYOR LUND, COUNCILMEMBER BARNETTE, COUNCILMEMBER BILLINGS AND COUNCILMEMBER BOLKCOM VOTING AYE AND COUNCILMEMBER WOLFE VOTING NAY, MAYOR LUND DECLARED THE MOTION CARRIED ON A 4 TO 1 VOTE. OLD BUSINESS: 1. Second Reading of an Ordinance Amending Chapter 6, Commissions, of the Fridley City Code Providing for Substitute Members on the Appeals Commission. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13, 2006 PAGE 26 Joanne Zmuda, 6051 Fourth Street NE, stated she has a problem with someone from the Planning Commission filling in on the Appeals Commission. It seems like a conflict of interest. If a person's issue has already been denied by the Planning Commission and it goes before the Appeals Commission and someone from the Planning Commission is sitting there at that time, it seems like the deck is already stamped against you. There has to be a better way to resolve this issue. Mayor Lund asked if there is any time when a commissioner from the Planning Commission would also vote again on appeals. Mr. Hickok replied, no. In some communities, the Planning Commission acts as the Appeal Commission. They are one in the same, and that is probably more typical than not. Our items do not go through the Planning Commission and the Appeals Commission. If they applied for a variance they would go through the Appeals Commission. If they applied for other land use actions, they would go through the Planning Commission. We do by the design of our commissions have an overlap between commissions, so the communication is good between the commissions. It would not put them in jeopardy or at a disadvantage in any way because they are not relying on both commissions to vote on their item. Councilmember Bolkcom stated sometimes there might be an issue related to a rezoning or a variance, but they are two separate issues, and the Planning Commission does not even vote on that variance. That goes to the Appeals Commission so they are kept separate. William Burns, City Manager, stated they could conceivably have a big project where it has an element in the Planning Commission and then another element in the Appeals Commission, but that is a rare case and for the most part the matters are pretty much separate. Councilmember Billings stated he noted there was a conflict in Chapter 6, Section 4(a) and (b). He asked Mr. Hickok how the conflict was resolved. Mr. Hickok replied each independent section was reviewed. The request was whether the language was modern and it was directly related to how many at-large members serve on the Planning Commission. Councilmember Billings asked specifically if it was current and was correct. They researched that and the language is precisely how it is today with the commission members. Councilmember Billings stated he is reading 4(a) and it said the Planning Commission shall consist of a chair and three members-at-large; 4(b) says that the chairperson and two members- at-large shall be appointed by City Council to serve for three-year terms. He had suggested that possibly it could be a typographical error and they should go back and look at the original ordinances and clean up the language there the same time they were doing Chapter 6. He asked that the item be tabled so this could be checked on. Mr. Hickok stated he thought if the minutes were checked it will show there was a question as to whether the specific language in one section was about the number of commissioners at large. They went back and looked at that specific section, he got permission to call Councilmember FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13, 2006 PAGE 27 Billings from Dr. Burns to ask for clarification on this to see if there was anything further and did not hear back They brought the language forward with the section. If it is something they want changed at this time, he would be glad to go through it again. They do not want an inconsistency in the ordinance. MOTION by Councilmember Bolkcom waive the reading of this ordinance and table the ordinance to December 4, 2006. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, MAYOR LUND, COUNCILMEMBER BARNETTE, COUNCILMEMBER WOLFE AND COUNCILMEMBER BOLKCOM VOTING AYE AND COUNCILMEMBER BILLINGS ABSTAINING, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. NEW BUSINESS: 16. Appointment to the Fridley Housing and Redevelopment Authority. Ms. Zmuda, 6051 Fourth Street NE, said on the City's website, a vacancy on the Charter Commission has been listed for quite a while. She knew that Virginia Schnabel was moving. However, she did not see an advertisement for people to go on the HRA, and she does know of a few people who would be interested in serving. She was wondering when they were going to be posted on the website. Mayor Lund replied they did not post specifically an HRA position. Citizens can fill out an application for any of the commissions, as many times there are vacancies. Ms. Zmuda asked if they are not on the website how would they know if they do not watch the meetings. Mayor Lund replied he was looking for a candidate for several months and even actually talked to a handful of people over the last several months trying to find somebody who had some qualifications. They usually try and look for people who have some type of background, maybe an attorney or somebody who is into housing already, such as a realtor. Ms. Zmuda asked how someone would apply for the position. Mayor Lund replied it is easy to make an application. It is a one-page simple application on the website or they can fill out an application. Councilmember Bolkcom said Council felt that Councilmember Billings would be a good candidate because he has a lot of experience. He was on the Planning Commission. She said they needed someone with strong civic experience. MOTION by Councilmember Bolkcom to approve the appointment of Steven E. Billings to the vacancy on the Fridley Housing and Redevelopment Authority. Seconded by Councilmember Barnette. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13, 2006 PAGE 28 UPON A VOICE VOTE, MAYOR LUND, COUNCILMEMBER BARNETTE, COUNCILMEMBER WOKFE, AND COUNCILMEMBER BOLKCOM ALL VOTING AYE, AND COUNCILMEMBER BILLINGS ABSTAININT, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. OLD BUSINESS: 3. Second Reading of an Ordinance Amending Chapter 114 of the Fridley City Code Pertaining to Abandoned Junk or Unsafe Motor Vehicles. and Adopt Official Title and Summary Ordinance. Councilmember Billings stated he is willing to support this motion but one of the primary reasons it is being put forward is that we are not doing things in accordance with the ordinances. We are not holding cars for auction, we are doing something different and it seems to him that they should have been doing things in accordance with the laws that exist and not doing something different. It bothers him that they have to make a change in the law in order to comply with what staff has decided they want to do different from the laws that exist. Mayor Lund asked him to be more specific for him. Councilmember Billings stated if he remembered the presentation correctly and the memorandum that came with it, the former language says the vehicle shall be immediately eligible for sale at public auction. The new language that is being inserted is for sale by a duly authorized agent of the City or at public auction. It is his understanding what they have been doing is allowing the sale by a duly authorized agent of the City. We have not been holding them for public auction. Don Abbott, Public Safety Director, replied this proposal actually came out of Planning as far as police vehicles when we take them for auction. The vehicles are held usually six months or twelve months until such time as the court paperwork has been completed, at which time they either sell them directly through the City sealed-bid process or sell them at the police auction using the contract auctioneer. Councilmember Billings asked if we are holding all of these vehicles to be sold at public auction or if someone else is currently selling them. William Burns, City Manager, asked Scott Hickok to answer his question. Mr. Hickok stated the distinction between the Police Department towing and impounding vehicles and auctioning vehicles is distinct. They are doing it exactly according to this ordinance. This ordinance in some ways predates the aggressive abatement process they have done with the five-day orange tag. He said Shorty's Towing takes the vehicles to their impound lot. There are times where we have an exorbitant amount of vehicles being towed at one time, FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13, 2006 PAGE 29 and they store them. They will release the cars back to residents and the residents need to sign a release form and bring them back to their property only when it is going to be in compliance. On the rare occasion when someone decides not to pick up their car, Shorty's goes through the statutory process of asking the State for a duplicate title, and doing all the things they need to do and then put the vehicle out for auction. It is a distinct difference. These vehicles are ones that are being towed with the five-day tag. They are the vehicles that Shorty's takes to their impound lot. We do not have an impound lot per se. We have an area where we keep the cars that are impounded by the Police Department, but we do not have the volume we would have if we were doing the orange-tag storage. MOTION by Councilmember Billings to waive the reading and adopt Ordinance No. 1236 on second reading and adopt the official title and summary ordinance and order publication. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, MAYOR LUND, COUNCILMEMBER BARNETTE, COUNCILMEMBER WOLFE AND COUNCILMEMBER BOLKCOM VOTING AYE AND COUNCILMEMBER BILLINGS ABSTAINING, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. NEW BUSINESS: 10. Resolution to Vacate Portions of 3rd Street, 57t'' Place, and 57 �/z Avenue, Generally Located Between 2 �/z Street and University Avenue, in Order to Accommodate the Gateway West Redevelopment Project (Vacation Request, SAVE #06-02, by the City of Fridley Housing and Redevelopment Authority) (Ward 3) Councilmember Billings commented staff report indicates that some language would change. He asked if this was done a few months ago when we vacated some streets but not the storm and utility easements. Mr. Hickok said that was an earlier ordinance, a vacation for 57 '/z Avenue from some years ago. Tiny segments of the street were vacated on the east side of the now-existing Third Street, but although the street was vacate, the utilities had not been vacated MOTION by Councilmember Billings to adopt Resolution No. 2006-77. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 6. Approve Extension of a Special Use Permit, SP #05-04, to Allow a Telecommunications Facility at 8290 Main Street (Ward 3). Councilmember Bolkcom said the letter from Mr. Edwards says they would like a 90-day e�tension of the special use permit that was granted, but staff recommends a 12-month e�tension. She said she was a little concerned with that. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13, 2006 PAGE 30 Mr. Hickok replied on that property there was a special use permit from years ago where there has not been compliance on grading and drainage issues. Grading and drainage on the site is a complex thing and will take a complex solution to get it taken care of. If the property owner wants another special use permit which grants him the value of a long-term lease with the telecom, he needs to at least clean up stipulations that were supposed to have been taken care of in the 1980s. We will be in the midst of winter at the end of ninety days, and there may be potential excavation, removing blacktop, and contouring certain parts of the site. That does not happen in February, March, and early April. They need this much time in order to solve the problem. MOTION by Councilmember Bolkcom to approve the e�tension of Special Use Permit, SP #OS-04, until December 2007, to allow a telecommunications facility at 8290 Main Street. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 13. Resolution Authorizing Changes in Appropriations for the 2006 Budget for September Through October 2006 Councilmember Bolkcom asked what is the MVHD was. Mr. Pribyl replied this is actually the market value homestead credit and in 2005 that was the first year that they received referendum money from that levy that was passed for Springbrook. The market value homestead credit was inadvertently actually allocated to the Springbrook Nature Center fund when the City did the allocation for market value homestead credit. It should not have received it and was discovered this year after the books were closed for 2005. So what they did to correct that situation was to do an operating transfer. MOTION by Councilmember Bolkcom to adopt Resolution No. 2006-80. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 15. Receive Bids and Award Contract for the Construction of Two Rescue Trucks for the City of Fridley Fire Department. MOTION by Councilmember Bolkcom to table this item until a further date. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13, 2006 PAGE 31 23. Informal Status Reports Councilmember Bolkcom said our election judges work an incredible amount of hours and should be commended for their work. Mayor Lund commented on the utility and rate increase, and although it failed, he wanted to thank all the voters who did come to the polls. He said this was a prime example of what happens when you do not vote on a particular item. It gets counted as a no vote. It did not pass by the required 51 percent. This will leave the City in a little bit tougher financial situation in the near future. Councilmember Bolkcom said there will be an opening on the Parks and Recreation Commission now that we have a new Council member. Councilmember Wolfe congratulated Jim for winning his election and Dolores for winning his spot and he congratulated Ann. He wished them the best of luck. 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 11:06 P.M. Respectfully submitted by, Denise M. Johnson Scott J. Lund Recording Secretary Mayor