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09/10/2007 - 00029191CITY COUNCIL MEETING CITY OF FRIDLEY SEPTEMBER 10, 2007 The City Council meeting for the City of Fridley was called to order by Mayor Lund at 7:31 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 Saefke Councilmember Varichak Councilmember Bolkcom OTHERS PRESENT: William Burns, City Manager Scott Hickok, Community Development Director Layne Otteson, Assistant Public Works Director Richard Pribyl, Finance Director/Treasurer John Berg, Fire Chief Deb Skogen, City Clerk Fritz Knaak, City Attorney Peter Eisenzimmer, 6535 Oakley Drive Richard Wolfe, 960 Hathaway Lane PROCLAMATION: Mayor Lund issued a proclamation for Constitution Week September 17-23, 2007. The proclamation was accepted by members of the Daughters of the American Revolution. APPROVAL OF PROPOSED CONSENT AGENDA: APPROVAL OF MINUTES: City Council Meeting of August 27, 2007. APPROVED. NEW BUSINESS: 1. Approve Change Order No. 2 for the 2007 Neighborhood Street Improvement Project No. ST 20207-1. FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 10, 2007 PAGE 2 William Burns, City Manager, stated staff recommends Council's approval of the change order for the street improvement project. The total cost of the change order is $15,356.75. It brings the total cost of the contract with Forest Lake Contracting, Inc. to $2,421,165. APPROVED. 2. Resolution Consenting to the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, Adopting a 2007 Tax Levy Collectible in 2008. William Burns, City Manager, stated by statute, the Fridley Housing and Redevelopment Authority is allowed to levy up to .0144% of the taxable market value of all Fridley real estate. In 2008, this levy will enable the HRA to collect $377,000 for funding of its redevelopment programs. The levy for the owner of a home valued at $200,000 is $28.80 per year. The levy costs the owner of commercial/industrial property valued at $1 million $144 a year. The proceeds of the levy are used to cover the costs of the HRA's housing rehabilitation loan program. The levy must be certified to the County by September 15, 2007. Staff recommends Council's approval. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 3. Appointment — City Employees. William Burns, City Manager, stated they are recommending Council's approval of the appointment of Cynthia Ruschy to the Licensing and Records Technician position recently vacated by the resignation of Becky Brazys. She is one of 250 applicants for the position. Dr. Burns also stated that Staff is recommending Council's concurrence in the appointment of Thomas Roddy to the police officer position recently vacated by Derek Griggs. Staff recommends Council's approval of his appointment. APPOINTED TECHNICIAN POSITION. CYNTHIA RUSCHY TO THE LICENSING AND RECORDS POSITION AND THOMAS RODDY TO THE POLICE OFFICE 4. Claims (133284 — 133467). APPROVED. 5. Licenses. APPROVED THE LICENSES AS SUBMITTED AND AS ON FILE. 6. Estimates. FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 10, 2007 PAGE 3 APPROVED THE FOLLOWING ESTIMATES: Standard Sidewalk 10841 Mankato Street N.E. Blaine, NIN 55434 2007 Miscellaneous Concrete Repairs #370 Estimate No. 3 ............................................................................... $ 10,647.69 Allied Blacktop Co. 10503 — 89th Avenue North Maple Grove, MN 55369 2007 Street Seal Coat Program #2007-10 Estimate No. 1 .............................................................................. $150,000.00 Veit & Company, Inc. 14000 Veit Place Rogers, MN 55374 2007 Sanitary Sewer Lining Project #371 Estimate No. 1 .............................................................................. $ 69,412.20 Forest Lake Contracting 14777 Lake Drive Forest Lake, MN 55025 2007 — 1 Street Improvement Project Estimate No. 5 .............................................................................. $450,049.68 Mayor Lund said with respect to Item 1, would that project correct the problem of the sump pumps running into the street in Melody Manor. Layne Otteson, Assistant Public Works Director, answered that was not included in this project, but field personnel were going to deal with that issue. Pete Eisenzimmer, 6535 Oakley Drive, asked for Item 2 to be removed for further consideration. MOTION by Councilmember Barnette to approve the Consent Agenda with the removal of Item 2. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 10, 2007 PAGE 4 ADOPTION OF AGENDA: MOTION by Councilmember Barnette to adopt the agenda with the addition of Item 2. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY OPEN FORUM (VISITORS): Richard Wolfe, 960 Hathaway Lane, said he had problems with signage in the City. He said he had brought the issue to Councilmember Barnette and has not heard a reply. He said he is in the real estate business and whenever they put a sign in the wrong place the signs are removed. Blueprint Homes however, have signs right on the curb and their signs remain. He questioned why Blueprint Home signs still remain even though they do not meet City Code requirements. Scott Hickok, Community Development Director, answered that the signs are supposed to be installed 10' inside the property line or appro�mately 20' from the curb (depending on right-of- way width). One sign is allowed per lot and if the home is on a corner lot, two signs are allowed. Mr. Hickok said that if the sign is too close to the curb and causes a visibility or safety issue, the sign would be removed. If the signs cause no safety issue, the sign would remain even if it is not up to code. The signs that Blueprint Homes uses are a sandwich board sign and they have one per lot. If the signs are too close to the curb, he will contact them regarding this issue. Pete Eisenzimmer, 6535 Oakley Drive, presented questions on several issues. He asked where the money was coming from for the work on the following projects: • The work that is being done on 71st and 73rd Avenue by the park. • The University project with the ball fields. • The talk of reunifying University and rebuilding. • The bike path project on 85th Avenue. He also said he has an issue with his back yard being flooded. He has seen any action on this and staff advised he should get a petition out to get something done. Mayor Lund answered that he would respond to all of these items at the ne�t City Council meeting. If Mr. Eisenzimmer was unable to attend the ne�t City Council Meeting, staff will send him a letter. Councilmember Bolkcom said staff would gladly sit down with him and the budget book so he can see that none these items were being paid with inappropriate funds. She assured Mr. Eisenzimmer that the City's funds were being spent appropriately. FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 10, 2007 PAGE 5 PRESENTATION Dave Lenzmeier, Fire Department Captain, said he is a 24-year veteran with the Fire Department. He shared how the Fire Department interacts with the citizenship in Fridley in terms of public education. Some of the things the Fridley Fire Department does are station tours, educate the younger people as to what a fireman looks like, and show the fire trucks and other equipment. Mr. Lenzmeier said that the Safety Camp is very popular and 6 to 8 firefighters put in two days of their own time with 150 kids to educate them on fire safety. They hold an open house that is attended by 300 to 600 citizens in one day. There are various displays and demonstrations, and people can try on equipment. This year the open house will be held on October 3 from 11:00 a.m. to 3:00 p.m. This year's campaign for the open house is plan and practice your escape to make it effective. CERT Training and first aid training is another way to educate the public. The Citizens Academy program has also been very successful. Mr. Lenzmeier said that three days out of the school year the Fire Department visits all six schools in Fridley. They bring the fire escape house and talk about fire safety and exposure. The National Night Out program is also very popular. On that night, the Fire Department has every vehicle they own out to different parties visiting citizens. Other programs include public appearances, car seat clinics, and the bike safety program. PUBLIC HEARING: 7. Consideration of a Resolution Ordering the Removal or Repair of a Hazardous Building Pursuant to Minnesota Statutes, Section 463, Located Within the City of Fridley, Minnesota (1465 Gardena Avenue NE) (Ward 2) (Continued July 23, 2007). MOTION by Councilmember Varichak to remove this item from the table and open the public hearing. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE PUBLIC HEARING REMOVED FROM THE TABLE AND OPENED AT 8:15 P.M. Scott Hickok, Community Development Director, said the hazardous building is a garage located in a fenced-in back yard. The owner had agreed to have the building down by August 31, 2007. This deadline was missed, so for this reason, the public hearing is back before Council. As of Friday, the building was still standing but today the building is half demolished. Mr. Hickok said that the building is not entirely removed from the site. Staff has been working on this hazardous building since January, 2007. Staff recommends Council deem this building a hazardous building and authorize commencement of the legal process to have the building entirely removed from the site. A resolution will appear later this evening on the agenda. Staff would like to continue this public hearing until December 3, 2007, to assure a two-stall garage will be rebuilt by the end of November, which is City Code. FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 10, 2007 PAGE 6 Councilmember Varichak asked what happens if the owner does not finish the process. Mr. Hickok answered if the resolution should pass, that would start the process of the 20-day time period for the owner of the property to respond. On the 21st day the City would go ahead and finish the project. Staff hopes that the property owner will finish the project on time. Councilmember Varichak asked if the City has to go in and finish the job, if the property owner would be billed. Mr. Hickok answered the property owner would be billed to recover the costs. Mayor Lund asked what course of action would be taken if the homeowner does not have a two-stall garage built by December 3, 2007. Mr. Hickok said at that point, there would be a good record for Council. This also sets up a reasonable time for the homeowner to build a garage to be in compliance. Mayor Lund said if the owner does not comply, the City would build the garage and assess the homeowner's property taxes. Councilmember Bolkcom asked if there was a fence all around the property and if the building has a posting on it that said it was a hazardous building. Mr. Hickok answered that a fence is around the yard with a gate and after tonight, there would be a posting on the garage listing it as hazardous. Councilmember Bolkcom said it was a rental property and asked if there were any other obligations and if the rental license could be pulled if they did not comply. Fritz Knaak, City Attorney, answered it would be justification for review of the renewal of the rental license. Councilmember Varichak said she was disappointed this did not get done in a timely manner. MOTION by Councilmember Varichak to continue the public hearing to December 3, 2007. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY OLD BUSINESS: 8. Second Reading of an ordinance Amending Chapter 11 of the Fridley City Code Pertaining to General Provisions and Fees (Rental License Fees). FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 10, 2007 PAGE 7 John Berg, Fire Chief, said since the Rental Housing Program was introduced in 1995, there have been only two license fee increases. In 2001 there was a 10% increase and in 2004 a 50% increase. The revenue is estimated to be about 61% of the total budget expenditure at this point in time. Assuming the Rental Housing budget will increase by 1% in 2008 and 3% for each of the following two years, the revenue compared to budget expenditure will be an estimated 58%. The 15% increase in 2008 would bring the estimated revenue to 70% of the budget expenditure. This would be approximately a$6.25 increase in the annual licensing fee for a single family dwelling and a$34.75 increase on a 12-unit building. Staff is recommending Councils approval of the second reading of the ordinance. Councilmember Barnette said that he recently read an article in the Minneapolis Star Tribune regarding rental licenses. The article mentioned that if a rental property gets three complaints to the property the license could be revoked. He asked if Fridley had any policy like that. Chief Berg answered that Chapter 220.14 of the City Code does have a similar provision. Councilmember Varichak said that she had a call from someone who watched the last meeting and had a question about the efficiency of the inspections and suggested maybe raising the fees if a re-inspection was needed. Chief Berg said currently there is an initial license fee that is an annual fee. There is also an additional $150 charge in place for a third inspection and $150 for each inspection thereafter until the problem is corrected. Councilmember Bolkcom said that Fridley is still way below the average compared to other communities. She also said there are only 175 single-family homes that are listed as rental property and she thinks that number is not correct. She asked how that number is verified and how we know if a single-family home is a rental property. Chief Berg said he estimates there are 200 to 300 homes that are non-homestead, and it takes time to track down the owners. The department is working on this but it is a slow process. As we find more rental properties the revenue will increase. Councilmember Bolkcom asked when the City was due for another fee study. Richard Pribyl, Finance Director, said that a fee study should be completed within the ne�t 12 months. Councilmember Bolkcom asked if there was communication between the City and the Fire Department when the water bills are sent to another address to get the properties listed as a rental property. Mr. Pribyl said that he would follow through with this issue. Councilmember Saefke asked if the ordinance would protect a renter from legal eviction if people violated the policy. FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 10, 2007 PAGE 8 Mr. Knaak said it would depend on the lease and the condition for termination of the lease. Usually violation of residential ordinances is something that can be utilized for means of termination of the lease. Unless there is a term in the lease, the answer is no. Councilmember Saefke said that maybe it would be a good idea to have some model lease language for renters to use for legal protection. Mayor Lund said that if the rental industry cannot take care of the issues on their property the City needs to get involved. He asked why we are not charging more to come closer to the actual cost of the inspection. He said that we should be focusing on seeking out and finding properties that are not listed as rental properties. Maybe penalize those who do not come forward. Chief Berg said that it is a misdemeanor to operate a rental unit without a license. Typically, the homeowner is sent a letter to get the property licensed and most people comply. Mayor Lund said that it is unfair not to penalize those who are operating without a license. Councilmember Bolkcom said by finding more properties, the City will not necessarily increase the revenue because there would be more properties to inspect. Mayor Lund said that the license is an annual fee and the properties are inspected every four years and common areas every other year. Councilmember Bolkcom asked how much time is spent on an inspection. Chief Berg said a single family home takes 20 to 30 minutes and a rental building takes 5 to 10 minutes per unit. If the property is not maintained well, the inspection would take much longer. Mayor Lund said that the larger complexes are disproportionate compared to smaller units based on the fees that are charged. Chief Berg said that is correct, but the larger units become more complicated because there are common areas and other fire safety issues that need to be inspected. Councilmember Barnette asked how they could catch those homeowners who are renting without a license. Mayor Lund said we need to educate and inform citizens through newsletters stating that a license is required to rent the property and also work with water bills. Councilmember Barnette said that if a citizen knew a person was renting without a license, they could contact the city. FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 10, 2007 PAGE 9 Dr. Burns, City Manager, said that part of the problem is that this program does not have the staffing available to be as aggressive as they could be in finding people who are renting without a license. Fees would need to be raised pretty high to hire another person to do inspections. Councilmember Bolkcom encouraged staff to do a fee study to figure out what should be charged. MOTION by Councilmember Bolkcom to waive the reading of the ordinance and adopt Ordinance No. 1246 on second reading and order publication. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY NEW BUSINESS: 9. Resolution Ordering the Removal or Repair of a Hazardous Building Pursuant to Minnesota Statutes, Section 463, Located Within the City of Fridley, Minnesota, (1465 Gardena Avenue N.E.) (Ward 2). MOTION by Councilmember Varichak to adopt Resolution No. 2007-44. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY 10. Resolution Declaring a Special Election to Approve Ordinance No. 1244, an Ordinance of the City of Fridley Amending Chapter 7 of the Fridley City Charter. Richard Pribyl, Finance Director, said on August 24, 2007, the City received Petition 2007-1 which was signed by 326 voters. The petition was reviewed and found to be sufficient with 286 qualified registered voters. This petition requested the repeal of Ordinance No. 1244 which removed the utility charges from Chapter 7.02, Subsection 3A of the City Charter. The petition suspends the action the Council has taken over the last couple of months to amend Chapter 7. Council may either rescind Ordinance No. 1244 or by resolution bring the question before the electorate. Mr. Pribyl said staff recommends that Council make a motion to accept Petition No. 2007-1 and adopt a resolution requiring a special election to approve Ordinance No. 1244, by holding a special election to be held on November 20, 2007 with the proposed language: Shall the City of Fridley Charter be amended to eliminate utility rate restrictions and allow the City Council to establish rates to cover the costs of operations? Yes or No Mayor Lund asked what this special election would cost. FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 10, 2007 PAGE 10 Deb Skogen, City Clerk, said that the 2005 Special Election cost almost $14,000. MOTION by Councilmember Bolkcom to adopt Resolution No. 2007-45. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY Mayor Lund said that this special election will be on November 20, and all are encouraged to vote on this question. There will be one question on the ballot and information will be going out to residents in the near future. 2. Resolution Consenting to the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, Adopting a 2007 Tax Levy Collectible in 2008. Peter Eisenzimmer, 6535 Oakley Drive, asked how long this has been going on and what the HRA does for the City. Mayor Lund said it has been going on for 11 years and the amount is dependent on the value of the home. Many communities, including Anoka County, have an HRA and they are involved in the redevelopment of the community such as the Blueprint Homes development. Mr. Eisenzimmer said he heard that Blueprint Homes is having problems selling the homes. Mr. Hickok said that Blueprint Homes has been a success. They have built 8 of 9 homes and have 3 or 4 homes that have pending sales. The development has been going very well in spite of the slow housing market. One buyer had a financial fall out but the home sold to another buyer. Mr. Eisenzimmer asked if the HRA reimburses some of the money to the City or if they keep building. Dr. Burns said that the City does not use any of the general funds for the HRA money. This is a separate authority from the City sources. Taxpayer money is not spent to fund the HRA. MOTION by Councilmember Bolkcom to adopt Resolution No. 2007-43. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY 11. Informal status report Councilmember Bolkcom thanked everyone who came to the last University Avenue Corridor meeting. There was some good discussion. The ne�t meeting is scheduled for September 20 at the Community Center from 7:00 p.m. to 9:00 p.m. FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 10, 2007 PAGE 11 Councilmember Barnette reminded people that on September 15 there will be a Patriot Day event at 8:00 p.m. at the Spring Lake Park High School football stadium. ADJOURN MOTION by Councilmember Barnette to adjourn. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 9:20 P.M. Respectfully submitted by, Krista Monsrud Scott J. Lund Recording Secretary Mayor