12/04/2006 - 29213CITY COUNCIL MEETING
CITY OF FRIDLEY
DECEMBER 4, 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
MEMBERS ABSENT: Councilmember Bolkcom (Due to family emergency illness.)
OTHERS PRESENT: William Burns, City Manager
Fritz Knaak, City Attorney
Scott Hickok, Community Development Director
Richard D. Pribyl, Finance Director/Treasurer
Jon Haukaas, Public Works Director
John Berg, Fire Chief
Jim Saefke, Councilmember Elect
Dolores Varichak, Councilmember Elect
APPROVAL OF PROPOSED CONSENT AGENDA:
APPROVAL OF MINUTES:
City Council Meeting of November 13, 2006
APPROVED.
City Council Meeting of November 20, 2006
APPROVED.
NEW BUSINESS:
1. Receive the Minutes from the Planning Commission Meeting of November 15, 2006.
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 4, 2006 PAGE 2
RECEIVED.
2. Extension of Special Use Permit, SP #05-03, and Variance, VAR #05-14, for the
Expansion of Woodcrest Baptist Church, Generally Located at 6875 University
Avenue N.E. (Ward 1).
William Burns, City Manager, stated the special use permit and variance were approved last
year and were due to expire on November 7, 2006. The Church's contractor is requesting a one-
year e�tension of the two items on behalf of the Woodcrest Baptist Church, The special use
permit and variance will permit Woodcrest to construct a 14,162 square foot addition onto the
northwest end of the existing building. It will include a new entrance and glassed-in fa�ade that
faces the parking lot. The expansion will accommodate a main floor sanctuary, a balcony, and a
lower-level classroom. Staff recommends Council's approval.
APPROVED.
3. Resolution to Vacate a Portion of Madison Street, Generally Located North of Rice
Creek Terrace and Terminating at Rice Creek Park, in Order to Vacate a No
Longer Needed Right-of-Way (Ward 1).
William Burns, City Manager, stated the vacated property is not needed for Madison Street and
is needed for driveways at 617 and 625 Rice Creek Terrace. The Planning Commission held a
public hearing on the vacation at their November 15 meeting and approved the vacation. Staff
recommends Council's approval.
ADOPTED RESOLUTION NO. 2006-85.
4. Resolution Authorizing an Agreement for the Replacement of the Traffic Control
System on University Avenue (TH 47) and 81st Avenue N.E. (Ward 3).
William Burns, City Manager, stated the resolution defines the scope of the work and the
distribution of costs. Fridley's share is $60,318 and will be paid from the City's MSAS account.
The use of this funding will not affect local street reconstruction or maintenance projects. Staff
recommends Council's approval.
ADOPTED RESOLUTION NO. 2006-86.
5. Resolution Authorizing an Agreement for the Installation of a Trail Crossing Over
the BNSF Railroad Tracks Along 85t'' Avenue N.E. (Ward 3).
William Burns, City Manager, stated the agreement with BNSF will allow the 2007
construction of the 85th Avenue bikeway. The City is funding the bikeway by using a federal
transportation grant to cover 80 percent of the cost. We will use state money to cover the
$18,149 local match. The total cost of the crossing is $90,744 and will cover the relocation of
signal components and other costs for building the crossing. Staff is recommending Council's
approval this agreement.
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 4, 2006 PAGE 3
ADOPTED RESOLUTION NO. 2006-87.
6. Claims (129401-129683).
APPROVED.
7. Licenses.
APPROVED THE LICENSES AS SUBMITTED AND AS ON FILE.
8. Estimates.
APPROVED THE FOLLOWING ESTIMATES:
Dave Perkins Contracting, Inc.
14230 Basalt Street N.W.
Ramsey, MN 55303
73 '/z Avenue Street Improvement
Project No. ST. 2005 - 3
FINAL ESTIMATE ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... $ 4,685.72
Concrete Idea
13961 — 44th Lane N.E.
St. Michael, MN 55376
Miscellaneous Concrete Project No. 365
FINAL ESTIMATE ... ... ... ... ... ... ... ... ... ...... ... ... ... ....... $ 4,208.87
Greystone Construction Company
500 S. Marschall Road, Suite 300
Shakopee, MN 55379
Salt and Sand Storage Building Project #369
FINAL ESTIMATE — Invoice No. 6480 ... ... ... ... ... ... ... ... .... $ 5,481.05
Greystone Construction Company
500 S. Marschall Road, Suite 300
Shakopee, MN 55379
Salt and Sand Storage Building Project #369
Invoice No. 6478 ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ..... $61,408.00
MOTION by Councilmember Barnette to approve the consent agenda as presented. Seconded
by Councilmember Billings.
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 4, 2006 PAGE 4
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
ADOPTION OF THE AGENDA:
MOTION by Councilmember Barnette to approve the agenda. Seconded by Councilmember
Wolfe.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
OPEN FORUM (VISITORS):
No items presented.
PUBLIC HEARINGS:
9. Consideration of the 2007 City of Fridley Budget.
MOTION by Councilmember Billings to open the public hearing. Seconded by Councilmember
Wolfe.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
PUBLIC HEARING OPENED AT 7:38 P.M.
William Burns, City Manager, stated the budgeting process is a yearlong process. It begins in
March of each year with departmental budgeting and progresses to the City Manager's review
and from there to Council review usually in June and in October. It involves a lot of people.
The department managers are very responsible in their budgeting habits. The City does not get a
lot of requests for things that are not really needed, and most of what the City eventually funds is
a continuation of existing services. He thinks it is important as they look at the budget for any
year to pay attention to the State legislative conte�t in which the budgeting occurs. What the
legislature does has a lot to do with City's operation.
Dr. Burns stated in 2006, there were some good and bad things at the legislative level. From his
perspective as city manager he thinks it was good they did not get levy limits and that wine was
not allowed in grocery stores. It was good that $60 million was approved for the Northstar
project. There were some bad things. From his perspective they got some very restrictive
legislation regarding the use of eminent domain which will adversely impact the City's ability to
do redevelopment projects. There were some other things he would call "mixed blessings." The
City got some relief on tort liability as it relates to joint powers agreements. On the other hand,
the tort liability limits were raised beginning in 2008 and then again in 2009. So our municipal
liability has been increased although the joint powers agreement liability has been decreased.
The State legislature approved about $82 million in expenditures for the "Clean Water Legacy
Act." Most of the money for the Clean Water Legacy Act projects goes to greater Minnesota;
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 4, 2006 PAGE 5
and it also absorbs general fund money that could be used for funding our schools and our cities
in general. So it competes with other general funding sources.
Dr. Burns stated for 2007, he has been told we will have levy limits. Property taxes were one of
the big issues in the 2006 election campaign. There seems to be some dedication now towards
restoring levy limits in 2007. There is a good chance the legislature will do that. There is more
money. In fact $80 million has been requested for expansion of the Clean Water Legacy project.
Some of that will come to the metro area, but the vast majority of that will go out-state. With the
general fund budget surplus that has been announced, the opportunity for revising the local
government A-Formula is much brighter than what it was in the past. Any time you start
changing the formula, which he feels is very unfair for the first-ring suburbs in the metropolitan
area, there are winners and losers. He thinks we will have a better chance at revising that local
government aid formula which helps with property taxes. Without local government aid, any
gap in general funds will need to be filled locally or else programs will need to be disbanded. So
it is good for us to get local government aid.
Dr. Burns stated the wine in the grocery stores issue is back. He understands it is not likely to
pass this year, but SuperValu is pushing very hard to get that to happen. If it happens, it will be
damaging to Fridley's municipal liquor business, in that it will set up a new competitor for the
sale of wine. We will also see some legislation in the tax increment financing area. There will
probably be some reduction of restrictions on pooling of money from different tax increment
districts. The Northstar commuter rail organization will be pushing for some sales tax relief, and
they will also be pushing for some investment money. His understanding from talking to the
metropolitan cities' representative is they will have a very tough road in getting that money for
the Northstar project. A lot of it has to do with how the transit portion of the money is split up
between the metropolitan area and the greater Minnesota area and then, if a portion does go to
the greater Minnesota area, how will greater Minnesota view the Northstar project. They may
not view it favorably.
Dr. Burns stated there is also a big push for improving highways in Minnesota, both in the
metropolitan area and in the greater Minnesota area. It is likely we will see some funding
proposals either through things like a metropolitan area sales tax or through a gasoline tax
increase to provide more money for highway construction.
Dr. Burns said staff had two budget work sessions—one in June and one in October. They
began that process several years ago, and it works well. The June session allows staff to get an
early jump on the budget, and the October session allows them to address items that they have
more information on. Health insurance costs are one of those items. One of the major issues in
this year's budget work sessions was employee health insurance. The City has been paying 80
percent of the premium cost for health insurance. That number was reduced to 70 percent for
both family and single policies. It was well over $50,000 in savings as a result of that move.
Another issue was whether we should fund Alexandra House which operates a battered women's
shelter. They also have a domestic abuse advocate who has been operating under the Fridley
Police Department. The question was do we want to spend $42,700 to continue the funding of
the domestic abuse advocate; and it was decided that they should do that. That amount is about
$7,000 more than they budgeted for this year. They also budgeted about $6,500 for a code
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 4, 2006 PAGE 6
enforcement intern. They talked about additional security cameras and other security devices for
the Municipal Center and they talked about improvements to the Innsbruck Nature Center.
Dr. Burns stated the bulk of their time in the work sessions was talking about general fund and
utility fund imbalances. The City has a great imbalance in both areas between the revenues that
it is collecting from taxpayers and utility rate payers and the money the City is expending. He
said the City is spending $17,852,706. That is almost $SOI,OOO less than what the City budgeted
for this year. The general fund expenditure is about 4 percent more or about $528,000. The City
is seeing about $720,000 less budgeted for capital improvements and $302,000 less budgeted for
the various special revenue funds.
Dr. Burns stated with respect to the general fund, this is the fund that funds the police, fire,
public works, administrative services, City Council, City Attorney, and most of the day-to-day
operations of the City. The overall budget is up by $528,000 or 4 percent; and the vast majority
of that money comes in the personal services area. The increase is $474,357 or 5 percent in
personal services cost. There is some reduction in capital outlay costs and some additional
increase for supplies and other services and charges. From the personnel side, the $478,000
includes the 3 percent COLA for city employees, costing $197,000. There are mandated costs
for PERA of $63,000 and additional health insurance costs of $21,302. Had the City not
increased the cost of the premiums for employees, that number would have been up over
$80,000. The temporary employee costs are up by $128,523. One of the reasons for that is the
City had a full-time employee who became part-time in the Community Development
Department. The City replaced that full-time employee with two part-time employees. The City
also had another person budgeted as a full-time employee in the rental inspection program
reduced to a part-time employee. Regarding mandated workers' compensation, costs are up by
almost $42,000; and market rate adjustments for a number of positions throughout the City will
cost $80,000.
Dr. Burns stated the big item in supplies is vehicle fuel. The City will be spending almost
$29,000 more on fuel, and that may not be enough. In other services and charges, energy costs
are up so utility costs are up by almost $45,000. The Alexandra House contribution raises that
part of the budget by $7,561.
Dr. Burns stated under capital outlay, the City has reduced expenditures for equipment by
$47,590. What is left is $105,860 for four police squads; $95,000 for replacement of street
maintenance equipment; $45,000 for replacement of parks maintenance equipment; and $80,000
for the purchase of an additional fire rescue truck.
Dr. Burns stated on the revenue side, the revenues for the general fund include $940,000 in
transfers from other funds and $676,000 from the general fund reserve. Altogether, the City has
over $1.6 million in the use of either transfers or general fund reserves the City is using to
balance the general fund budget.
Dr. Burns said the special revenue funds category includes the cable television fund, the grant
management fund, the solid waste abatement fund, police activity fund, and Springbrook Nature
Center fund. They are special revenue funds because they must be accounted for separately from
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 4, 2006 PAGE 7
the general fund. The cable television fund is funded through the franchise fees the City gets
from the cable company. The expenditure there is down because this year the City replaced a lot
of the analog cable equipment with digital cable equipment. The City does have a few purchases
in ne�t year's budget but not nearly as much capital outlay as it had this year. Grant
management is about the same. This covers Section 8 and the Chores and More Program at the
Senior Center. The solid waste abatement program is up by 37 percent. Most of the $122,000
there is represented by what is called a"revenue sharing program." The City has a deal with the
recycling hauler, BFI, in which BFI shares the revenue for selling the recycled products. The
City gets more than $100,000 a year from BFI to use for special recycling days. A big part of
that increase is for those revenue sharing programs and for additional drop-off days.
Dr. Burns said the police activity fund had $2.5 million in it. The City has been spending it
down year by year. This year the City is spending the remaining $190,000 of that money (which
was actually a one-time turn back on pensions from the State of Minnesota). So after this year
the City will be out of police activity fund money and will be replacing that with transfers from
other funds in order to balance the budget. The Springbrook Nature Center fund is up by
$25,706; almost all of that has to do with either cost of living adjustments or market rate
adjustments for three full-time staff inembers who work at the nature center. Altogether the
special revenue funds are projected to spend $302,000 less than what the City is spending this
year.
Dr. Burns stated regarding the capital improvement funds, the City has three capital
improvement categories: "general" which usually includes buildings but it also sometimes
includes fire department trucks, streets, and parks. The City's general capital improvements this
year will be funded at the level of $75,000. Streets are down somewhat from last year,
$2,590,000; and parks at $197,000. The City is spending $727,000 less mostly because the
expenditure for streets capital improvements is considerably down from what it was.
Dr. Burns stated under the general capital improvements category, the City will be doing some
security system improvements. The card readers are being replaced in the building. The City is
also installing some cameras in the temporary holding cells and interview rooms in the Police
Department. There is a new vehicle hoist recommended to be purchased for the City garage and
some sprinkler system improvements underneath the Municipal Center. The amount of
$2,350,000 is budgeted for street reconstruction. Regarding parks, the City is doing court
overlays, replacing the Commons Park hockey rink, doing a few improvements to the Innsbruck
trail at a cost of $15,000, and expanding the Fridley Community Center parking lot at a cost of
$30,000. The City also has a$75,000 project at Community Park which is Phase II of the park
soil replacement and irrigation program. There has been a problem with drainage on the six ball
diamonds. The City is taking out dirt and replacing some of the hard clay that has been in there
with more acceptable soils and replacing the irrigation systems over a three-year period of time.
This is the second year of that program.
Dr. Burns stated there is another category of funds not officially part of the budget but
nevertheless are budgeted. They are the enterprise funds which are supposed to be operating like
a business. The amount of $12,498,000 has been budgeted for the four enterprise funds: water,
sewer, storm water, and municipal liquor. About half of it goes to liquor and the rest goes to the
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 4, 2006 PAGE 8
three utilities. The water fund is down, and the sewer fund is up by $270,000. Most of the
increase in the enterprise funds is accounted for by the sewer fund, and almost all of the sewer
fund increase is accounted for by the NCES wastewater treatment charge that is passed down to
the City over which it has no control.
Dr. Burns stated there are some debt service programs in the budget which includes $417,000
for water system improvements; $101,000 for storm sewer projects; and $314,523 for street
improvements.
Dr. Burns stated regarding the tax impact of the 2007 budget, the total tax levy is $9,200,426 or
5.1 percent more in total levies for 2006. The levy includes $243,432 which is allowed by the
City Charter for the general fund. This part of the levy has been increased by 2.8 percent which
is the amount allowed by the Charter. It also includes $7,900 allowed by the City Charter at the
rate of 2.8 percent as an increase in the Springbrook Nature Center levy and, finally, it includes
$198,036 for debt retirement and street improvement bonds which is not limited by the Charter.
These levies, along with changes, and property valuation will result in a$1 reduction in the
City's portion of the property tax bill as it applies to the average valued home of $216,500.
Dr. Burns stated the total property taxes will increase or decrease, depending on which school
district you live in. They will increase by $115 in Spring Lake Park School District and decrease
by $110 in the Columbia Heights School District, increase by $1 in the Fridley School District
and decrease by $64 in the Anoka-Hennepin School District.
Dr. Burns said regarding the financial health of the City, one measure of that is what we are
doing to our fund balances. The City is pulling down the balances at a pretty good rate. By the
end of 2007, it will have moved from $17.8 to $16.8 million. During that whole period, the City
has seen expenditures exceed revenue by anywhere from $1.3 million to well over $2 million.
The 2007 deficit is $1.6 million. The only reason it has held at $1.6 million is that at the end of
July the City received news from the State that we would be getting $382,000 in unexpected
local government aid from the State of Minnesota. If the City had not received the local
government aid, the deficit would be up around $2 million.
Dr. Burns stated as the City has lost local government aid, the emphasis on property taxes has
increased. In 2003 when it still had some aid, 43.3 percent of revenue came from property taxes.
In 2006 the City will see 62.2 percent come from property taxes, and ne�t year 61.8 percent. The
City has become much more dependent on property taxes as the State takes its aid away. In
constant dollar terms, the City is spending about the same amount of money as it did over 10
years ago.
Dr. Burns said for a second year in a row, new construction is down considerably. Last year, it
was down by 10 percent. This year, it is down by 19.3 percent. Unemployment is going up in
Fridley. It went from 3.9 percent to 4.2 percent. He believes that is consistent with the current
national average. These figures are the average for the first nine months of 2006. The City is
seeing continued loss of jobs. Over the last five years, something like 3,000 jobs have been lost
in Fridley. They are pretty much evenly divided among manufacturing, retail, and service sector
jobs. Over 10 percent of the jobs that the City had five years ago have been lost.
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 4, 2006 PAGE 9
Dr. Burns stated property values are also up by 6.4 percent although residential values are only
up by 5.1 percent. That is quite a change from what we were experiencing over the previous
couple of years where we were seeing double digit single-family residential appreciation. The
values of non-homestead units (3 units or less) have gone up by 40 percent. The tax assessor
stated the City had 103 single-family residential properties in 2006 that were converted from
homestead properties or owner-occupied property to rental properties.
Dr. Burns said crime rates are about the same. The City had 3,836 Part I and Part II crimes
during the first nine months of 2006. That is pretty close to what was reported last year and the
five-year average for the rate of crime in Fridley.
Dr. Burns stated regarding public assistance, the number of families benefiting by cash
assistance (welfare checks and food stamps provided by the County) is up by 10.2 percent, and
students receiving free or reduced meals in District 14 schools is up by 14.9 percent. They are
quick to point out that a sizable share of that 14.9 percent has to do with the all-day kindergarten
they have now.
Dr. Burns stated in conclusion, the 2007 budget provides for continuation of existing service
levels. There is nothing new. At the same time, it also provides for continued imbalance
between revenues and expenditures for both the general fund and the utility funds, and that is a
concern. As projected in his budget message, the City probably has between 5 and 7 years
before it is totally out of money; and it cannot wait that long to do something. One of the things
the City really needs to do, and has been working very hard on, is to seek a fair portion of LGA
funding from the State of Minnesota. The current LGA formula needs to be changed. The City
also needs to seek additional support from the Fridley voters in the form of utility rate increases
that cover the cost of the City's utility operation. Without new infusions of local government
aid, the City will soon come to a fork in the road whereby it must choose between higher
property taxes if you want to keep the same level of services. He thinks the City has cut as much
as it can from its services. Unless the utility imbalance is dealt with, it is facing deterioration of
its water, sewer, and storm water systems.
Dr. Burns stated the City is already at the point where it cannot issue revenue bonds to pay for
the improvements to the systems because the City is not generating revenue. So ultimately, the
systems will deteriorate. The City will not have money to repaint tanks, refurbish the insides of
tanks, redevelop wells, take care of sewage lift stations, or take care of the other huge amount of
public infrastructure the City has to support its water and sewer system. When that happens,
those things will go downhill, and they will threaten the public health and safety of the people of
Fridley. It is a lot easier to do preventive maintenance on the utility system than it is to let it
wear down and have to totally replace it. This is the same for other services.
Dr. Burns said he believed the City does have good teamwork It has a City Council that does
look at staff's proposals and at the same time works with staff as a team and vice versa.
Comparing Fridley's cost of taxes and services to other cities, he thinks people will quickly see,
as shown in the past, its taxes and rates are very low. The City looks forward to working with its
residents to find continued support for these services.
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 4, 2006 PAGE 10
MOTION by Councilmember Barnette to close the public hearing. Seconded by
Councilmember Wolfe.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING WAS CLOSED
AT 8:18 P.M.
10. Consideration of an Intoxicating Liquor License for Baggan's Pub, 3720 East River
Road N.E. (Ward 3) (Continued November 13, 2006).
MOTION by Councilmember Billings to reopen the public hearing. Seconded by
Councilmember Wolfe.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
PUBLIC HEARING REOPENED AT 8:18 P.M.
Richard Pribyl, Finance Director, said the business will operate as a restaurant on the one side
and as the Oops Theater and Banquet Center on the other side. The original public hearing was
conducted on November 13 and continued until this evening based on a couple of concerns
identified at that meeting. The first concern was related to a number of significant deficiencies
regarding the building that were identified by the Anoka County Health Department and also
members of the City of Fridley Inspection Division. Also, during the meeting, Councilmember
Billings identified an issue that staff felt was worth considering again which related to the
proposed business operation and its relationship to the City ordinance regarding the food-to-
liquor ratio, and also the definition of a restaurant and the percentage of sales that relate to that
40 percent in the definition of a restaurant. They have heard recently from the Anoka County
Health Department and are very pleased with Mr. Bisek's progress and feel he should be on
target to complete the work by the end of December. The City's inspection division is also
satisfied with his progress.
Mr. Pribyl stated as of this evening staff has not received a business plan from Mr. Bisek or his
attorney, and he understands a lease arrangement has yet to be executed with the Oops Theater.
They are aware that the City Attorney and Mr. Bisek's attorney have been in contact, and this
business-related information is in the progress of being defined. Staff is concerned about their
business plan and how it will coincide with the City's liquor ordinance. The action staff is
recommending tonight is due to the 60-day rule (today is the 60th day the City has been in receipt
of the license request from Mr. Bisek) and because staff is still in need of the business plan or at
least the financial plan to fully evaluate the request, staff is recommending Council authorize an
additional 60-day e�tension to review and consider the intoxicating liquor license Mr. Bisek has
requested. Staff is recommending this public hearing be continued to December 11, 2006, in the
hopes of evaluating the business plan related to the overall sales of food and liquor on the
premises.
Mayor Lund asked since this is the 60th day of the 60-day rule, is Ms. Bisek going to be
requesting an e�ension.
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 4, 2006 PAGE 11
Mr. Bisek replied, yes. He stated he has a pro forma that has already been compiled that he can
bring in tomorrow for the City. There has been quite a bit of conversation today with his
attorney and a little bit with the City Attorney. They understand pretty much now how the City
would like to see the contract drawn up between himself and Oops Theater. They should be able
to have that to the City by the middle of the week, Thursday the latest. They should be able to
have everything in the City's hands by December 11.
Councilmember Billings stated there are a couple of issues. There is the 60-day rule where if
Council does not act within 60 days, the action becomes automatic and in this case the liquor
license would be issued. One of three things can happen tonight. Mr. Bisek can ask for an
additiona160 days for Council to consider this, the Council can ask for an additional 60 days, or
they can make a motion tonight to deny the liquor license.
Mr. Bisek requested the additiona160-day e�tension so they can maneuver through the contracts
and keep the City satisfied.
Councilmember Billings said Mr. Bisek indicated that he and his attorney had something done
or something real close to being done. He asked when Mr. Bisek thought he could get it to City
staff. He thought Mr. Bisek was hoping for a January 1 opening.
Mr. Bisek replied it would be ideal if they could get everything accomplished in time to open by
January 1. He said he would work on the documents right away and would more than likely
have them to City staff by Thursday at the latest.
Councilmember Billings asked if he could have them to staff by Wednesday. This would allow
the City Attorney to review them and would allow Mr. Bisek time to make any changes. He said
he thought there was an ordinance that says you cannot issue a liquor license on the same
evening a public hearing is held. He asked the City Attorney if they would be in compliance if
they issued a liquor license ne�t week.
Fritz Knaak, City Attorney, replied that should not be a problem.
Councilmember Billings stated he is very anxious for Mr. Bisek and his attorney to get things
done so staff and the City Attorney can look at them again.
Mr. Bisek replied he will request his attorney to either e-mail or fax a copy of the draft to have it
approved by the City Attorney and he will proceed to get signed copies and get those documents
to City staff.
Mayor Lund asked if they should close the public hearing.
Attorney Knaak said it was an option, but it would preclude Council from getting any
additional information on the record. Based on the facts, he would suggest that it is important to
develop a good record.. He said he did not think it would prejudice the applicant in any way
provided the 60-day rule is e�ended.
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 4, 2006 PAGE 12
Mayor Lund asked if it would be a problem to issue the liquor license on the same evening a
public hearing is held.
Attorney Knaak replied under the circumstances he does not think it will be a problem for
them, but he would check into it. He said it would be in the City's interests to send something in
writing to the applicant indicating that the 60-day rule has been e�tended. It is a technical rule,
but he wanted to make sure it was met.
Mayor Lund stated let the record show they are giving Mr. Bisek the form asking for the
e�ension to the 60-day rule, and he has received it.
MOTION by Councilmember Billings to continue the public hearing until December 11,
2006. Seconded by Councilmember Wolfe.
UPON A VOICE VOTE, ALL VOTING
MOTION CARRIED UNANIMOUSLY
CONTINUED AT 8:31 P.M.
AYE, MAYOR LUND DECLARED THE
AND THE PUBLIC HEARING WAS
11. Consideration of the Neighborhood Street Improvement Project No. ST. 2007 — 1
(Continued November 13, 2006).
MOTION by Councilmember Barnette to reopen the public hearing. Seconded by
Councilmember Billings
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
PUBLIC HEARING REOPENED AT 8:32 P.M.
Jon Haukaas, Public Works Director, stated this was initiated on November 13, 2006, and they
requested that it be continued to tonight's meeting to allow them to get additional publication of
the notice of this hearing into the paper. They have done all the necessary notification of
residents in the project area. The purpose of the public hearing is to receive further information
or input from the citizens. They have held neighborhood meetings explaining what they propose
to do. He said it is their standard reconstruction project--reconditioning some of the City's older
bituminous curb streets to the new street standards of 30 feet wide with concrete curb and gutter.
He believes almost all of these streets are at that width. There are a couple of streets south of the
high school that have narrower streets. They will not be able to get them to their standard of 30
feet wide, but they will improve them a little bit and work with what they have.
MOTION by Councilmember Billings to close public hearing. Seconded by
Councilmember Wolfe.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING WAS CLOSED
AT 8:37 P.M.
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 4, 2006 PAGE 13
OLD BUSINESS
12. Motion to Approve Amended Language in Sections 6.03.04 and 6.06.02 of the
Fridley City Code;
and
Second Reading of an Ordinance Amending Chapter 6, Commissions, of the Fridley
City Code, Correcting Number of Planning Commissioners and Providing for
Substitute Members on the Appeals Commission (Tabled November 13, 2006).
Scott Hickok, Community Development Director, said this is an ordinance amendment
regarding substitution of commission members. Initially they were looking at substituting
members to the Appeals Commission from the Planning Commission when there was not a
quorum for a Appeals Commission meeting. In the process of modifying that section of the City
Code, Council called to staff's attention some inconsistencies with the language in the City
Code. As a result, staff reviewed the language and made modifications. At the advice of the
City Attorney staff is recommending that Council make a motion to adopt the other amendments
before addressing the second reading of the ordinance.
MOTION by Councilmember Billings to approve the amendment language in Sections 6.03.04
and 6.06.02 of the Fridley City Code. Seconded by Councilmember Wolfe.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
Councilmember Billings pointed out a typographical error with respect to the date listed for the
first reading of the ordinance. It says August 20, 2006. He thought the first reading was actually
held in October, 2006.
MOTION by Councilmember Billings waive the reading of the ordinance and adopt Ordinance
No. 1237 on second reading and order publication. Seconded by Councilmember Barnette.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
NEW BUSINESS:
13. Approve Change Order No. 3 to the 2006 Street Improvement Project No. ST.
2006 — 1.
Jon Haukaas, Public Works Director, stated this is their final housekeeping change order for a
lot of small items that the contractor was requested to do throughout the course of the project,
primarily in the final phase. It balances out some of the City's contract cost versus what was
actually done during the project. It encompasses 15 separate items. Each item has supporting
documentation from the City's contractor: itemized labor and contract costs they occurred, hours
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 4, 2006 PAGE 14
for each individual item, quantities for what was being done, etc. Request No. 28 is for additions
to the private driveway contracts, and it has essentially 50 subparts for all the different driveway
work. Each little item on a driveway that the City may not have bid originally but was requested
by a resident was agreed to under each driveway contract. However, since the City does not
have it as an item in its bid, it needs to be approved through a change order. Each one of these
costs are passed through the residents who have already agreed to pay them. The City just needs
to approve it under its contract with Park Construction.
Councilmember Barnette asked if this was a fairly typical number of items.
Mr. Haukaas replied it is not unusual to have this many special pay requests. Some contractors
handle them differently. Because of the size and complexity of this project, he does not think
this is unusual at all. He said he thought this was a much more cleaner and transparent method.
Every single item is itemized with its exact costs, and a request is made for each one.
MOTION by Councilmember Barnette Approving Change Order No. 3 to the 2006 Street
Improvement Project No. ST. 2006 — 1. Seconded by Councilmember Wolfe.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY
14. Reinstate the 2005-2006 Rental License for 6571 Channel Road;
and
Approve Application for a 2006-2007 Rental License for 6571 Channel Road
(Ward 2).
John Berg, Fire Chief, stated on June 26, 2006, City Council voted 5-0 to revoke the 2005-2006
rental license for the property generally located at 6571 Channel Road. Since that time, the
owner has met all the requirements that the City's inspection staff has required. They corrected
all the open inspection items, they paid all their utility bills and fees, and they have made the
proper application for licenses. At this time, staff is recommending that the 2005-2006 rental
license at 6571 Channel Road be reinstated. In addition, staff is recommending that the
application for the 2006-2007 rental license be approved.
Mayor Lund asked if the fence issue had been resolved.
Mr. Berg said it had.
MOTION by Councilmember Wolfe to reinstate the 2005-2006 Rental License for 6571
Channel Road. Seconded by Councilmember Billings.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 4, 2006 PAGE 15
MOTION by Councilmember Wolfe to approve the application for a 2006-2007 Rental License
for 6571 Channel Road. Seconded by Councilmember Barnette.
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.
John Berg, Fire Chief, stated for the year 2006 and 2007, the City budgeted $80,000 each year
for the replacement of two rescue trucks. The 2006 truck bids were received in August 2006,
and the City was about 24 percent over budget at that time. Staff then made a request to bid both
trucks in an effort to be more cost effective. Bids for two rescue trucks were opened on August
30, 2006. General Safety was the lowest bidder on the truck construction at $62,595 per truck.
That was about a$7,500 reduction from the previous bid. By going with the State bid for a cab
and chassis, the City could save $1,900, which was about $1,900 lower than any of truck
manufacturer bids that it received in October. The City gave them the option to bid on both the
truck and the chassis, but the State bid was lower. Total project cost is $183,738 for the two
years. That is about a 15 percent increase over what they originally budgeted. Staff
recommendation at this time is that the City buy two cab chassis off the State bid at the cost of
$58,548, that Council received the bids from October 30, 2006, and award construction of the
two rescue trucks to General Safety Fire Apparatus at a cost of $125,190.
William Burns, City Manager, said the biggest reason for the delay between October 30 and
now is staff was waiting for the State bid to become clear and final.
Mayor Lund asked what the total cost savings would be by doing the two trucks at once.
Chief Berg replied the City saved about $7,500 on the construction of the vehicle and whatever
inflation would have been added into that.
Councilmember Wolfe commented from what has happened in the past and how costs have
increased so quickly in a year, it could have been close to $10,000 in one year if the City waited
a year on the e�ra truck.
Chief Berg replied the City anticipated a 10 percent increase, and ended up with a 24 percent
increase just because of the price of inetals and construction.
MOTION by Councilmember Barnette to receive the bids and award the contract for the
construction of two completed rescue truck apparatus to General Safety Fire Apparatus.
Seconded by Councilmember Wolfe.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 4, 2006 PAGE 16
16. Preliminary Plat Extension Request, P.S. #05-02, by Family Lifestyle Development
Corporation, Generally Located at 1314 Mississippi Street, 1340 Mississippi Street,
6421 Central Avenue and 6461 Central Avenue (Ward 2).
Mr. Hickok said they received an e-mail from Mr. John DeMello requesting an e�tension for six
months on his project. Mr. DeMello got approval from the Council on June 13, 2005, to
redevelop five parcels at the southeast corner of Mississippi Street and Central Avenue. Mr.
DeMello has asked for a couple different six-month e�tensions to allow him to complete
negotiations with investors on this project. It is staff's understanding that he is working with
three different investors at this time. He has requested a six-month e�tension to June 4, 2007,
and it is staff's recommendation to approve the e�tension.
Councilmember Wolfe asked Mr. Hickok if it is unusual for someone to get this many
e�tensions and if it harms the City in any way.
Mr. Hickok replied, no, it does not. It delays the filing. As long as they continue to make
progress and continue to request in a timely matter the e�tension, it is okay. As to whether this is
unusual, Town Center Development across the street has been granted e�tensions for that
project. It is not entirely unusual.
John DeMello, said he actually put on the MLS to expand the scope of the market of the
investors who would take a look at the project as a result of the slow economic real estate
development that just recently came into play. They had a couple of very serious investors with
proposals on the table but then all of a sudden they looked at the market situation and pulled out
at the last minute. Since that time, they have had three investors who actually have purchase
agreements on the table. The issue is the retail portion of the project. They would like to find a
way to fund a retail side. They are ready to go ahead with the housing. In this arena, it seems
investors either like housing or they like retail. The challenge is to find different groups that will
work together in the same project. They have investors who understand the project the way it is
and are excited about it, but there are two camps: the retail camp and the housing camp and they
do not necessarily share the same views.
William Burns, City Manager, stated the financial media that you hear these days talk about
this huge surplus of housing units nationally. He asked if there was a surplus of residential
condominiums.
Mr. DeMello replied, certainly. At this point there is a surplus of any kind of housing you could
imagine. Someone said there is a 6-8 month supply of houses, let alone condos which are going
up all over the place. However, he thinks it is more an issue of how you manage things.
MOTION by Councilmember Wolfe to approve Preliminary Plat E�tension Request, P. S. #OS-
02, by Family Lifestyle Development Corporation, generally located at 1314 Mississippi Street,
1340 Mississippi Street, 6421 Central Avenue and 6461 Central Avenue. Seconded by
Councilmember Barnette.
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 4, 2006 PAGE 17
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY
17. Informal Status Reports.
None given.
ADJOURN:
MOTION by Councilmember Barnette, seconded by Councilmember Wolfe, to adjourn.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MEETING ADJOURNED AT 9:03 P.M.
Respectfully submitted by,
Denise M. Johnson Scott J. Lund
Recording Secretary Mayor