06/14/2010 - 29313CITY COUNCIL MEETING
CITY OF FRIDLEY
JUNE 14, 2010
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 Saefke
Councilmember Varichak
Councilmember Bolkcom
OTHERS PRESENT: William Burns, City Manager
Jim Kosluchar, Public Works Director
Scott Hickok, Community Development Director
Deb Skogen, City Clerk
Fritz Knaak, City Attorney
PRESENTATION:
Fridley `49er Days Festival (June 24-26, 2010).
LEGISLATIVE UPDATE:
Senator Betzold said coming into this legislative session there was a projected $1.OB deficit due
to expenses and lower revenues. The deficit had to be addressed and budget cuts were made. On
May 5, the Supreme Court majority ruled that the Governor did not act properly in cutting a
small nutrition program. This created an additional deficit to address, which was resolved by
accepting some unallotments and shifting monies to K-12.
Representative Laine said big cuts were made in Local Government Aid (LGA) but cities were
expecting cuts so budgets were adjusted accordingly. Revenues are not coming in so cuts will
have to be made. The scattered TIF sites will help Fridley and hopefully Springbrook Nature
Center will get funding one of these years. Because of the LGA cuts, property taxes have been
raised $3.3B since 2003 which is very difficult for homeowners.
Representative Tillberry said the budget did balance but not necessarily how they wanted it to.
Springbrook Nature Center did not get funded again but there is a$2. SM matching dollars
available that may be a good opportunity for Fridley. There is a tax reform piece that may help
jump-start some businesses. The K-12 program resulted in flat funding or borrowing and we are
committed to paying it back The budget was balanced. The education bill did not get enough
votes to pass. Many are caught up in the process instead of looking at what the schools need.
FRIDLEY CITY COUNCIL MEETING OF JUNE 14, 2010 PAGE 2
The jobs bill was successful. About 20,000 jobs will be created in the state and these jobs are
starting to show up in communities.
Senator Chaudhary said the $700M bonding bill passed early in the session for shovel-ready
projects funded this spring that employed people early. The jobs investment package passed and
an investor tax credit is available for those with immediate job creation. He said they did our
best to mitigate damages and there will be additional revenues for schools, police, fire and
hospitals that will come from property taxes.
Mayor Lund agreed that it was an ugly session and the ne�t session will not be any better.
Senator Betzold said that the ne�t session could start with a deficit well over $6.OB.
William Burns, City Manager, said he was frustrated that LGA has been treated as short-term
and not as a comprehensive subject. The study did not meet once last year to discuss LGA, and
he does not understand why the two Chairs did not call the committee together. They last met in
August, 2009, and never met again. There is a lack of fairness in how things are carried out and
he thought Minnesota had higher standards.
Mayor Lund asked if they could find out why they are not meeting.
Senator Betzold does not know why they have not met and agreed they should meet but are
probably campaigning and so forth.
Representative Laine agreed it was an awful year but it will be worse ne�t year. There will be a
big budget deficit. Any revenue raised will cover only a fraction of the deficit, which leaves an
enormous number to solve with other means.
APPROVAL OF PROPOSED CONSENT AGENDA:
APPROVAL OF MINUTES:
City Council Meeting of May 24, 2010.
THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON
THE REGULAR AGENDA.
NEW BUSINESS:
1. Receive the Minutes from the Planning Commission Meeting of May 19, 2010.
RECEIVED.
FRIDLEY CITY COUNCIL MEETING OF JUNE 14, 2010 PAGE 3
2. Special Use Permit Request, SP #10-08, by SML Electrical, Inc., for an Electronic Gas
Pricing Sign, Generally Located at 7680 Highway 65;
and
Resolution Approving Special Use Permit, SP #10-08, for SML Electrical, Inc., on
Behalf of Lloyd Ring, the Property Owner of 7680 Highway 65 N.E.
William Burns, City Manager, said the new sign replaces a manual gas pricing sign at the
AMSTAR station on Highway 65. The Planning Commission unanimously approved this item at
their May 19 meet, subject to three stipulations. Staff recommends Council's approve the special
use permit with the following three stipulations and adopt the resolution.
1. Petitioner shall obtain sign permit and current sign erector license prior to installing any
signage on site.
2. Message on L.E.D. sign shall not change more often than authorized under Section
214.07 of the Fridley City Code.
3. Message on L.E.D. sign shall never flash or have motion that may distract vehicular
traffic in the area.
APPROVED SPECIAL USE PERMIT, SP #10-08, BY SML ELECTRICAL.
ADOPTED RESOLUTION NO. 2010-33.
3. Set a Public Hearing Date for June 28, 2010, to Consider Demolition of a Home Located
at 6260 Alden Way N.E. (Ward 3)
William Burns, City Manager, said Fridley's Chief Building official has declared this fire
damaged structure hazardous. In view of the non-responsiveness of the owners of the property,
staff is recommending the City begin the demolition process as defined Chapter 463 of
Minnesota Statutes. The first step is to establish June 28 as the public hearing date for the
initiation of this process. Staff recommends Council's approval.
SET A PUBLIC HEARING DATE FOR JUNE 28, 2010, TO CONSIDER THE
DEMOLITION OF A HOME LOCATED AT 6260 ALDEN WAY N.E.
4. Approve Contract for Administrative Services between the City of Fridley and the
Metropolitan Council for the Section 8 Housing Assistance Program.
William Burns, City Manager, said this is a renewal of a contract that expires on June 30. It
contains only minor changes in fees paid to the City for its Section 8 Housing services. These
fees are additional fees for "enhanced services" to new Brandes Place tenants. All fees discussed
FRIDLEY CITY COUNCIL MEETING OF JUNE 14, 2010 PAGE 4
here are fees to the City for services provided by the City's Section 8 Housing Coordinator and
her assistant. Staff recommends Council's approval.
APPROVED.
5. Approve Cooperative Project Agreement for 2010 Water Main Rehabilitation between
the Cities of Fridley, Golden Valley and Hutchinson.
William Burns, City Manager, said staff is proposing to jointly bid the City's "cured-in-place"
structural liner for a 2,200 foot section of water main on Innsbruck Drive with Golden Valley
and Hutchinson. Fridley will prepare its own design. Hutchinson and Golden Valley will
contract with SEH to do their design. Golden Valley will be the lead agency for the project and
will conduct bid advertising and award the bids. Each City has the option of accepting or
rejecting the bid for its portion of the work independently of the other cities. If this is approved,
bidding will commence in early July and the award will occur on August 9. The work would be
started in September and completed by early November. Staff recommends Council's approval.
THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON
THE REGULAR AGENDA.
6. Claims (146303 - 146546).
THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON
THE REGULAR AGENDA.
7. Licenses.
APPROVED THE LICENSES AS SUBMITTED AND AS ON FILE.
8. Estimates.
APPROVED THE FOLLOWING ESTIMATES:
Penn Contracting
13025 Central Avenue, Suite 200
Blaine, NIN 55434
2010 Watermain Rehabilitation
Project No. 391
Estimate No. 1 ..........................
..........................................................$ 44,782.50
Concrete Idea, Inc.
13961 — 44th Lane N.E.
St. Michael, MN 55376
2010 Miscellaneous Concrete Repair
Project No. 395
EstimateNo. 2 ......................................................
.. $ 5,042.79
FRIDLEY CITY COUNCIL MEETING OF JUNE 14, 2010 PAGE 5
Northwest Asphalt
1451 Stagecoach Road
Shakopee, MN 55379
61 st Avenue/Moore Lake Drive
Street Rehabilitation Project No. ST2009-02
Estimate No. 1 ...............................................................................$193,485.88
ADOPTION OF AGENDA:
Councilmember Bolkcom asked for the City Council minutes and Item Nos. 5 and 6 to be
removed.
MOTION by Councilmember Barnette to approve the Consent Agenda with the removal of the
City Council Minutes and Item Nos. 5 and 6. Seconded by Councilmember Varichak.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
MOTION by Councilmember Bolkcom to adopt the agenda with the addition of the City
Council minutes and Item Nos. 5 and 6. Seconded by Councilmember Saefke.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
OPEN FORUM (VISITORS):
None presented.
NEW BUSINESS:
9. First Reading of an Ordinance Amending Chapter 30, Lawful Gambling, and Chapter
603, Intoxicating Liquor, of the City of Fridley City Code Defining Licensed
Organizations to Conduct Lawful Gambling.
Deb Skogen, City Clerk, said concerns were raised by Fridley organizations wishing to conduct
lawful gambling. Staff conducted a survey in January:
— Six cities required organizations to have principal business or an operation within
that city. (Since that time New Brighton has removed its restrictions.)
— One city provided a waiver to an organization with significant community
involvement.
— Organizations were required to spend 60% to 85% of their lawful expenditures in
the trade area.
FRIDLEY CITY COUNCIL MEETING OF JUNE 14, 2010 PAGE 6
Ms. Skogen said staff discussed the results of the survey with the City Council at a conference
meeting and was directed to prepare an ordinance. The first reading of the ordinance was held
March 29, 2010. At that meeting, all individuals present spoke in favor of the ordinance. After
the meeting, letters were mailed to the licensed local establishments and those organizations
conducting lawful gambling in the City.
Ms. Skogen said on April 12, the ordinance was removed from the table for the second reading.
The City Council took additional input from the public and tabled the ordinance until the
meeting on Apri126. At that meeting, a representative of the Spring Lake Park Lions spoke and
said they were opposed to the ordinance because of the contributions they have provided to
Fridley residents and businesses. A representative of the Spring Lake Park Youth Hockey
Association said 10% of their organizational membership was from Fridley. A representative
from Broadway Pizza indicated they were concerned as they had just changed organizations after
interviewing four and had leased to the Spring Lake Park Youth Hockey Association. A
representative from the Fridley American Legion said they were concerned about the required
25% increase of lawful expenditures in the trade area.
Ms. Skogen said on April 26, the item was removed from the table for the second reading,
discussed and then tabled to the May 10 meeting. The City Attorney said the City had the ability
through its liquor licensing to place a preference for Fridley organizations or place additional
restrictions on lawful gambling. The City Council discussed whether or not to include a waiver
in case a Fridley organization could not be found. The VFW and the American Legion again
spoke against increasing the amount spent in the trade area.
Ms. Skogen said on May 10, the ordinance was removed from the table for the second reading
and discussed. Amendments were proposed. The City Attorney stated any amendment would
have to receive a unanimous vote. After further discussion, the ordinance was sent back for its
first reading to allow the City Council and staff time to address the concerns raised and to redraft
the ordinance.
Ms. Skogen said on May 24, the City Council met with staff at a conference meeting to discuss
this ordinance. The following changes were made to the ordinance:
— Chapter 3 0
• Defines a qualifying organization;
• Removes the 75% expenditures in the trade area; and
• Removes the limitation on how many premises an organization may conduct
lawful gambling.
— Chapter 603
• On-Sale liquor licensed establishments must seek qualifying organizations to
conduct lawful gambling;
• If an establishment cannot find a qualifying organization, the owner must attest to
that fact;
• The City Council may waive the requirement for a non-qualifying organization.
FRIDLEY CITY COUNCIL MEETING OF JUNE 14, 2010 PAGE 7
Ms. Skogen said staff recommends Council hold the first reading of the ordinance.
Councilmember Bolkcom asked Ms. Skogen to read the statement as to why this chapter is
being amended.
Ms. Skogen read the Statement of Policy, "The City of Fridley deems it desirable to regulate
lawful gambling within its jurisdiction as authorized by Minnesota Statutes Section 349.213. The
City finds that, for the purposes of greater supervision and access of information, a more
restrictive requirement for the location of licensed organizations to those located within the City
is in the interest of the health and safety of the citizens of the City of Fridley."
Mayor Lund said when a restaurant comes in, they will have to attest they tried to find local
organizations and then Council could make a waiver available.
Councilmember Bolkcom said if a restaurant changes ownership, changes will not be seen until
April of ne�t year.
Mayor Lund said that is correct.
MOTION by Councilmember Bolkcom to waive the reading of the ordinance and approve the
ordinance on first reading. Seconded by Councilmember Saefke.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
Councilmember Bolkcom asked when the ordinance would become effective.
Ms. Skogen said that the second reading will be on June 28 and then published in the paper the
following Thursday. Thirty days after that the ordinance will be adopted.
9A. Minutes of the City Council Meeting of May 24, 2010.
Councilmember Bolkcom said on Page 6, change "Councilmember Bolkcom asked if one of the
election judges should be included because of the pay" to read "Councilmember Bolkcom asked
if staff should be used instead of election judges because it is more expensive to pay staff than
election judges." And on Page 7 towards the bottom of the page change "pending" to
"spending." Also change the ne�t paragraph after that to read "Councilmember Bolkcom said
she does not have a problem with the resolution but she was concerned about the quorum and
budgets being approved for expenses that would come back to the City of Fridley."
MOTION by Councilmember Bolkcom to approve the minutes as amended. Seconded by
Councilmember Saefke.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
FRIDLEY CITY COUNCIL MEETING OF JUNE 14, 2010 PAGE 8
5. Approve Cooperative Project Agreement for 2010 Watermain Rehabilitation between
the Cities of Fridley, Golden Valley and Hutchinson.
Councilmember Bolkcom asked if any one of the cities could opt out.
Jim Kosluchar, Public Works Director, said anyone can opt out, but it is not advantageous to
the group if one member opts out.
Councilmember Bolkcom asked if the bids would be higher if someone opts out and if the
project would need a new bid.
Mr. Kosluchar said it depends on how many communities are involved, because they all
participate in the value of sharing costs. If the project is bid fairly, it should not affect the price.
Councilmember Bolkcom was concerned because Hutchinson is so far away and asked what
Fridley is doing that other cities are not.
Mr. Kosluchar said communities work together on designs and specifications and the contractor
has a set of plans and specifications on how the work is to be done. In some cases, there could
be special provisions for Fridley but he does not expect that to be the case, as plans can conform
from city to city.
Councilmember Bolkcom asked for an explanation to number ten.
Mr. Kosluchar said that each month a bill will be presented and submitted based on quantities
and then reimbursed to the appropriate city.
Councilmember Bolkcom asked if this was done after the project was awarded.
Mr. Kosluchar answered yes.
Councilmember Bolkcom asked if the City was liable for the contractors' workman's
compensation.
Mr. Kosluchar said Fridley is only liable for workman's compensation for employees of the
City.
Mayor Lund said the contractor would not be awarded without proof of insurance.
Fritz Knaak said because Fridley is involved with three cities, the purpose is so Fridley does not
pay joint workman's compensation for another city like Hutchinson. This would exclude the
liability and coverage of employees from other cities. Fridley does not want accumulated
liability.
Councilmember Varichak asked how these cities were selected.
FRIDLEY CITY COUNCIL MEETING OF JUNE 14, 2010 PAGE 9
Mr. Kosluchar said he recently attended a workshop on this type of rehabilitation in Coon
Rapids and started to discuss this opportunity with other cities and found Golden Valley and
Hutchinson were interested. He has received calls about the project and it should be a mutually
beneficial relationship with other communities in the future.
Councilmember Varichak agreed that it is great to share the burden and cost.
MOTION by Councilmember Saefke to approve the Cooperative Project Agreement for 2010
Watermain Rehabilitation between the Cities of Fridley, Golden Valley and Hutchinson.
Seconded by Councilmember Bolkcom.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DELCARED THE
MOTION CARRIED UNANIMOUSLY.
6. Claims (146303 - 146546).
Councilmember Bolkcom asked for liquor to be noted ne�t to the appropriate descriptions.
MOTION by Councilmember Bolkcom to approve the claims as submitted. Seconded by
Councilmember Saefke.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DELCARED THE
MOTION CARRIED UNANIMOUSLY
10. Informal Status Report.
Councilmember Saefke said he visited Stevenson School and helped package food for
earthquake victims of Haiti. Over 40,000 meals were packaged. Congratulations to the students
and volunteers on doing a great job for a worthwhile cause.
Councilmember Varichak attended the "Dancing with the Local Stars" event. About 200
people attended. The participants did very well.
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 8:50
P.M.
Respectfully Submitted,
Krista Monsrud Scott J. Lund
Recording Secretary Mayor