06/25/2012 - 31349CITY COUNCIL MEETING
CITY OF FRIDLEY
JUNE 25, 2012
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 Bolkcom
Councilmember Varichak
Councilmember Saefke
OTHERS PRESENT: William Burns, City Manager
Darcy Erickson, City Attorney
Darin Nelson, Finance Director/Treasurer
James Kosluchar, Public Works Director
Pam Reynolds, 1241 Norton Avenue
PROCLAMATION:
Women of Today Founder's Day — July 1, 2012
APPROVAL OF PROPOSED CONSENT AGENDA:
APPROVAL OF MINUTES:
City Council Meeting of June 11, 2012
APPROVED
NEW BUSINESS:
1. Resolution Appointing an Absentee Ballot Board for the 2012 Election Cycle.
William Burns, City Manager, said Anoka County has designated Fridley as a site for in-person
absentee ballot voting. It will also appoint our Absentee Ballot Board members as Deputy
County Auditors. The Board consists of staff trained as election judges. The use of staff will
help avoid costs for election judges for this purpose. Staff recommends Council's appointment
of the eight staff inembers listed as Fridley's Absentee Ballot Board.
ADOPTED RESOLUTION NO. 2012-36.
FRIDLEY CITY COUNCIL MEETING OF JUNE 25, 2012 PAGE 2
2. Resolution Appointing Election Judges for the 2012 Primary and General Elections.
William Burns, City Manager, said staff recommends Council's appointment of the people
listed in the resolution. The appointments are for two-year terms. The names include past
election judges, names submitted by political parties, and names of those who have applied
individually.
ADOPTED RESOLUTION NO. 2012-37.
3. Resolution Approving the Revised Investment Policy for the City of Fridley Housing
and Redevelopment Authority.
William Burns, City Manager, said the investment policy for the HRA was last updated in 1994.
The policy incorporates minor changes in State law as well as Government Accounting
Standards Board (GASB) regulations that deal with disclosure of risk It has also incorporated
the current State Auditor's Legal Compliance Guide and current model policies from the League
of Minnesota Cities and the Government Finance Officers Association. The changes are minor
and have little impact on the substance of our day-to-day investment activities. Staff
recommends Council's approval.
THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON
THE REGULAR AGENDA.
4. Claims (155556 - 155741).
APPROVED.
5. Licenses.
APPROVED THE LICENSES AS SUBMITTED AND AS ON FILE.
6. Estimates.
APPROVED the following estimates:
Ron Kassa Construction, Inc.
6005 East 250th Street
Elko, MN 55020
2012 Miscellaneous Concrete Repair
Project No. 417
Estimate No. 2 ............................................................................. $ 7,298.28
FRIDLEY CITY COUNCIL MEETING OF JUNE 25, 2012 PAGE 3
Allied Blacktop Company
10503 — 89th Avenue North
Maple Grove, MN 55369
2012 Cooperative Street Maintenance
Project No. ST2012-10
Estimate No. 1 ........................................................................... $ 75,241.01
Lametti & Sons, Inc.
P.O. Box 477
Hugo, MN 55038-0477
2012 Sanitary Sewer Lining
Project No. 416
Estimate No. 1 ............................................................................ $29,220.10
G.M Contracting, Inc.
19810 — S 15th Avenue
Lake Crystal, NIN 56055
2012 Jackson Street Project No. 413
Watermain Project No. 404
Estimate No. 1 .......................................................................... $290,964.97
APPROVAL OF CONSENT AGENDA:
Councilmember Bolkcom requested removal of Item Nos. 3 from the Consent Agenda.
MOTION by Councilmember Barnette to approve the Consent Agenda with the removal of Item
No 3. Seconded by Councilmember Varichak.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
OPEN FORUM VISITORS:
No one from the audience spoke.
AGENDA:
MOTION by Councilmember Bolkcom to approve the Agenda with the addition of Item No. 3.
Seconded by Councilmember Saefke.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
FRIDLEY CITY COUNCIL MEETING OF JUNE 25, 2012 PAGE 4
7. Receive Bids and Award Contract for Municipal Center Roof Replacement Project No.
418.
Jim Kosluchar, Public Works Director, said the Fridley Municipal Center roof is approximately
25 years old and has inadequate sloping and draining, with poor overflow protection. Minor spot
roof repairs have been completed once or twice a year in recent years to prevent water intrusion
into the building. Even so, we have had leakage into the building on a few occasions. This
project consists of the removal and replacement of the existing ballasted and fully adhered
roofing system over the Fridley Municipal Canter and Main Fire Station. It also will include the
replacement of the prefinished metal coping system, metal gravel stops, metal fascia, and metal
scuppers at the roof perimeter.
Mr. Kosluchar said that on May 7, 2012, the City Council received plans and authorized a call
for bids for the project. We e�tended the bid schedule to allow for a second pre-bid meeting and
provide additional opportunity for contractors to bid. Bids were opened on June 19, 2012. The
contract documents call for a 20-year warranty. The project is being bid with several alternates
including:
• Black and white EPDM (rubber membrane) options.
• White thermoplastic-polyolefin (TPO) option.
• Gas piping cleaning and painting, replacement of chimney flue caps, insulation for
refrigerant piping lines, and reuse of the existing cap flashings.
• Deductions for excluding roof areas.
Mr. Kosluchar said that the low Base Bid was provided by Central Roofing Co. of Minneapolis,
in the amount of $262,500. Staff recommends inclusion of the following alternates:
• White thermoplastic-polyolefin (TPO) option. Providing a deduct of $46,700, and
opportunity for energy rebate
• Include gas piping cleaning and painting (+$3,150)
• Include replacement of chimney flue caps (+$700)
• Include insulation of refrigerant piping lines (+$1,300)
• Re-use existing cap flashings (-$8,640)
• Include all roof areas
Mr. Kosluchar said presuming these alternates are approved as recommended, the low Base Bid
with selected alternates 1, 2, 4, 5, and 6 was provided by Central Roofing Co. in the amount of
$212,310. This is well under the project budget and estimate, and will enable us to entertain
additional roof repair work on the Police Department garage.
Mr. Kosluchar said the low bid contractor, Central Roofing Co., has performed responsively in
repair work and other smaller roofing work for the City of Fridley. We received positive
references from three projects of similar and larger scope, including work at the Minneapolis
Convention Center (45,000 sq. ft.), and a bulk mail center for the US Post Office in Eagan
(59,000 sq. ft.). With this positive work history, we are confident of the capabilities of Central
Roofing.
FRIDLEY CITY COUNCIL MEETING OF JUNE 25, 2012 PAGE 5
Mr. Kosluchar said staff recommends the City Council move to receive bids and award the
contract for the Municipal Center Roof Replacement Project No. 418 to Central Roofing
Company of Minneapolis, in the amount of $213,310, to include the Base Bid and Alternates 1,
2, 4, 5, and 6. If approved, the contract will be executed and work will begin with a completion
date of August 31.
Councilmember Bolkcom asked how much the consulting fee was.
Mr. Kosluchar answered $6,200, but there could be additional expenses for items like mileage,
postage and printing.
Councilmember Bolkcom asked if the leaking intrusion happened during heavy rainfall or
normal rainfall.
Mr. Kosluchar answered one did happen during a wet period. The others happened during the
winter time.
Councilmember Bolkcom asked why there is only a 20-year warranty on the roof when most
shingles carry a 35-40 year warranty.
Mr. Kosluchar answered the roof could stretch to a 30-year product but that is pretty rare.
Standard warranty on a commercial building roof is 10-20 years. Staff entertained a 10-year roof
with the initial estimate.
Councilmember Bolkcom asked if staff looked into installing any solar or energy saving
materials.
Mr. Kosluchar said there was a discussion if that would be feasible, but it would involve a
totally different project. The new roof will not interfere with anything installed in the future.
Councilmember Bolkcom asked if there were any energy rebates to take advantage of.
Mr. Kosluchar said the energy rebates are not a source of funds for the project but energy
savings which could create a rebate of several thousand dollars. The other avenue for additional
funding are grants. Staff has been watching for them, but a source of funding has not become
available. The issue is there are no programs available right now and the roof repair cannot wait.
Councilmember Bolkcom said some companies do offer rebates.
Mr. Kosluchar said he met with a company that does financing or provides a level of funding so
the cost is not such an impact on the budget, but having a current allocation in the Building
Capital Fund will finance this project.
Councilmember Bolkcom asked how this project relates to space planning.
FRIDLEY CITY COUNCIL MEETING OF JUNE 25, 2012 PAGE 6
William Burns, City Manager, answered they did not budget for a space planner this year or
ne�t year. There are no funds to build a new building or build an expansion of this building. It is
important to keep what we have in good shape and evaluate the current space needs. It is not
realistic to consider a new building or expansion of this building.
Councilmember Bolkcom said she just wanted to make sure this made sense—to repair a roof if
we are planning to do construction or expansion in the future.
Dr. Burns said different people have different views but we need to stay in this building and
keep it well repaired.
Mr. Kosluchar added the fire station has pressure on their space and we were not able to fund
that expansion. The roof would remain intact and would not be altered by that expansion as
envisioned.
Dr. Burns noted once the imaging process is in place, we will be able to get rid of a lot of paper
which will save space in this building. We are way behind in that process.
Councilmember Bolkcom asked whether a white roof was included in the project.
Mr. Kosluchar clarified that there are two white materials; white rubber and white TPO. We
are selecting the white TPO, number 4, which is a significant savings.
Mayor Lund noted there are four sections of the roof, with the fifth section being the Police
Department garage; he asked if that was all the roofs.
Mr. Kosluchar replied yes.
Mayor Lund said the metal flashing caps will be removed and the contractor will be re-using
this product if they are in good shape. He asked if the contractor damaged them, would they
replace them at their expense.
Mr. Kosluchar answered yes.
Mayor Lund asked if the TPO material would go up and over the cap.
Mr. Kosluchar answered yes.
Councilmember Bolkcom asked if staff was confident with the price and if there would be any
change orders.
Mr. Kosluchar said the price is based on the information staff has right now. There were four
cores taken out of the roof. The cores will show the insulation and what is underneath. As
always, hidden problems are possible, but this is the best estimate based on the information we
have. If something occurs, the contractor must be fair with us on price.
FRIDLEY CITY COUNCIL MEETING OF JUNE 25, 2012 PAGE 7
Councilmember Saefke said he has never seen a project yet that there is not something
unforeseen. He asked if there should be something built into the price if something should
happen.
Mr. Kosluchar said the price is what it is, and if something comes up they will have to address
it.
Councilmember Saefke said the budgeted price is a good price to get the work done and there is
enough money in the budget to do it.
MOTION by Councilmember Saefke to receive bids and award the contract for the Municipal
Center Roof Replacement Project No. 418 to Central Roofing Company of Minneapolis, in the
amount of $213,310, to include the Base Bid and Alternates 1, 2, 4, 5, and 6. Seconded by
Councilmember Bolkcom.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
8. Motion to Approve the Purchase of a New Imaging System and an Operating Transfer
Between the Employee Benefits Internal Service Fund and the Information Services
Internal Service Fund
Darin Nelson, Finance Director, said the City purchased its current imaging system in 1999
along with a server and jukebox system to archive documents. The jukebox system is almost at
capacity and the server has reached the end of its useful life. The cost to upgrade these
components would be approximately $30,000. Besides the new hardware costs, staff has
expressed concerns over the past several years that the current imaging system is inefficient.
Some of the concerns include slow retrieval speeds, lack of intuitiveness in searching for
documents, and lack of accuracy for retrieved maps.
Mr. Nelson said staff did e�tensive research on finding the solution that would best fit the City's
needs. Laserfiche was found to fit those needs. The advantages of Laserfiche include:
• Documents are stored in a file system similar to that of Microsoft Windows, thereby
allowing users to drag and drop files.
• The Laserfiche Workflow module will allow staff to automate many of their daily
work processes, such as accounts payable for example.
• Laserfiche Audit Trail provides a history of who has checked documents in and out
and follows any changes that have occurred.
• Laserfiche provides for easier search, navigation, scanning and administrative
features.
Mr. Nelson said staff requested proposals from all three of the Laserfiche vendors in the metro
area and is recommending Crabtree Companies, Inc., of Eagan as the preferred vendor. Crabtree
stood out as the vendor of choice for three reasons:
FRIDLEY CITY COUNCIL MEETING OF JUNE 25, 2012 PAGE 8
1. The Police Department currently utilizes Laserfiche supported by Crabtree through
the Anoka County Sheriff's Department.
2. There is free monthly training available for all staff.
3. Their technical expertise stood above the other two vendors. Crabtree offered
workflow solutions in lieu of additional modules that were quite expensive.
Mr. Nelson said the total project cost is $58,534.20, which includes the initial purchase,
conversion, training, and the first year's maintenance costs. Staff recommends funding this
project through surplus funds available within the Employee Benefits Internal Service Fund.
This fund accounts for the accrued leave balances for all City employees, and as of the end of
2011, the Fund had an unrestricted fund balance of $229,000.
Mr. Nelson said the City has always funded 100% of this liability and due to that philosophy,
interest earnings over time have accumulated to the previously stated $229,000. As proposed in
the 2013 draft budget, we are anticipating using $125,000 of this excess fund balance to supplant
the IS Internal Service Fund in 2013. With the reduction of $125,000 for the IS fund and the
$59,000 for Laserfiche this will still leave the Employee Benefit fund with $45,000 in
unrestricted fund balance.
Mr. Nelson said the $59,000 will be transferred to the MIS Internal Service Fund, which is
where all technology purchases are made. Staff is truly excited about the opportunities
Laserfiche will bring to the City. There are a lot of innovations that will not only improve the
storing and retrieving of data, but the endless possibilities that workflows offer create
opportunities for change and increased efficiencies. Staff Recommends the City Council
approve the purchase of Laserfiche through Crabtree Companies, Inc. in the amount of
$58,534.20 and the transfer of $59,000 from the Employee Benefits Fund to the MIS Internal
Service Fund.
Councilmember Saefke noted the City already has imaged documents and asked if there would
be a seamless transfer to the new system.
Mr. Nelson answered that Crabtree would convert over everything in a TIF image and put
documents into folders. No data that is already scanned would be lost.
Councilmember Saefke asked if this would require any e�tra staff time.
Mr. Nelson replied staff time on our end would involve developing the structure in how the
system will look as far as organizing files, etc.
Councilmember Saefke asked what the life expectancy of this technology was.
Mr. Nelson replied it is hard to say because technology changes very quickly. This company
has been around for a while and the system is compatible with the Windows environment.
Councilmember Saefke asked if free updates were included in the price.
FRIDLEY CITY COUNCIL MEETING OF JUNE 25, 2012 PAGE 9
Mr. Nelson said that is part of the annual maintenance costs.
Councilmember Saefke asked if they would correct any problems with the system.
Mr. Nelson answered yes. They would have remote access to our system.
Councilmember Bolkcom asked for clarification on the employee benefits and 100% liability.
Mr. Nelson answered that is actually how the fund is set up so there is cash and offsetting
liability which is employee paid time off, so the amount that is on our books is less than what we
have in that fund. At no point in time will we pay out more than what is in the fund.
Councilmember Bolkcom asked what the $45,000 was.
Mr. Nelson answered that is uncommitted funds.
Pam Reynolds, 1241 Norton Avenue, questioned why the City is looking into this expensive
technology as the City already stores documents in the PDF format. There is a Raid system for
mass storage of PDF files that could store 300M Council meeting packets and would cost
$3,000. Why doesn't the city look into this instead of buying this system? This is an expensive
system to store PDF files in folders. Laserfiche and Docuserve are the same thing, just two
different software programs. Is the purpose of this system to make less work for City employees
or to increase transparency of government and comply with government storage of records?
Ms. Reynolds said she currently uses Docuserve and she is concerned Laserfiche will not
transfer the documents she would like to access. Are the documents in Laserfiche going to be
able to be accessed? Converting documents to Laserfiche may take up more space because of
how the documents are converted. Documents that exist on paper should be the only ones that
need to be scanned. Laserfiche scanning is not scanning as you still have to scan it in to put
documents into this system. There may be a system out there for $5,000 to do the same work.
Free training is great but there are expense factors involved like transportation and meals for
staff. Training is key to making this system work.
Ms. Reynolds said her concern is it is June 25 and staff are asking to move forward for payment
on June 29. Roseville and Maplewood has had issues with this system and Anoka County has
also had some issues. A lot of times people jump on Laserfiche and in the beginning it is good
but after a while it isn't the best.
Mayor Lund noted that 70% of government units use this system. We tend to research how this
is working for others so we do not make the same errors. The questions Ms. Reynolds asked
were good questions but it would have been helpful to send her concerns to Council or staff to
research before the meeting.
Mr. Nelson said the files will be electronically scanned to PDF file rather than print to PDF.
The documents will be saved in TIF images, as PDF format is not an approved format. Staff will
save in the TIF format and export out in the PDF format. This new program will interface with
FRIDLEY CITY COUNCIL MEETING OF JUNE 25, 2012 PAGE 10
other software programs, and staff will be able to scan a bar code and scan the documents into
the system.
Councilmember Bolkcom asked how many staff are in the IT Department.
Mr. Nelson answered two people stretched very thin. It would not be feasible to meet the record
retention needs with two people.
Councilmember Bolkcom asked if staff heard anything from the other communities that they
were having problems with this system.
Mr. Nelson replied that Police Department staff use the Anoka County sheriff's system and have
not had issues. If there are any issues, there is customer support available.
Ms. Reynolds asked what the home user will see on this new system.
Mr. Nelson said the end user will still be able to access the system on public documents.
Laserfiche uses the same process and there should be a simpler search feature. Docuware is
currently set up with cabinets and Laserfiche will be structured with Windows so it will be easier
to see and find information. This system is completely different than Docuserve. It will be very
fast and efficient.
Mayor Lund asked about the resolution and if the resolution can be changed.
Mr. Nelson answered that the resolution can be changed and customized to what the City needs.
Ms. Reynolds heard that scans in this proposed system are made in less than 300 resolution so
the documents print out poorly. Laserfiche is a"one size fits all" so everything scans at the same
resolution and the system is not flexible.
Mr. Nelson replied that he was not sure about that information.
Ms. Reynolds said the Raid system would not work for Fridley if the IT department only had
two people.
Councilmember Bolkcom noted that this is not a horizontal move; we are building for the
future. Laserfiche will train staff, documents will be easier to find, the system has good history
with the Anoka County Sheriff's Department, and other cities are using this system.
Mr. Nelson agreed this is a big step up with document imaging and work flow and will take us
to the ne�t level. 70% of the cities use this system for a reason.
Councilmember Bolkcom asked how long staff has been working on this project.
Mr. Nelson said they started looking at making changes the first of the year, so they have been
researching this information for six months.
FRIDLEY CITY COUNCIL MEETING OF JUNE 25, 2012 PAGE 11
Councilmember Saefke asked if the City goes paperless on all documents, what security
measures were in place for those documents that are non-public, private personnel type records.
Mr. Nelson answered there are security levels so only certain people will have access to non-
public information. This is a very secure system.
Councilmember Saefke noted the cost of this system is less than the salary of one IT person for
one year. He asked what the annual maintenance fee amount was.
Mr. Nelson answered $8,000 to $9,000 per year, which is the same as we are paying now. Plus
now we are paying for the Jukebox and other server that we will no longer need. The annual fee
will be the same or a little bit less.
MOTION by Councilmember Bolkcom to approve the purchase of a new imaging system and
an operating transfer between the Employee Benefits Internal Service Fund and the Information
Services Internal Service Fund. Seconded by Councilmember Saefke.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
3. Resolution Approving the Revised Investment Policy for the City and the Fridley
Housing and Redevelopment Authority.
Councilmember Bolkcom asked how often "periodically" would be as mentioned in the last
paragraph of the Investment Policy.
Darin Nelson, Finance Director, answered 3 to 5 years depending on changes to state statutes.
Councilmember Bolkcom asked if that should be changed to say "very 3 to -5 years, no longer
than 5 years."
William Burns, City Manager, thought this policy should be reviewed when there are changes in
state statues or GASB policies changes.
MOTION by Councilmember Bolkcom to adopt Resolution No. 2012-38. Seconded by
Councilmember Saefke.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
MOTION by Councilmember Bolkcom to amend page 18, XVII Investment Policy Adoption to
read:
The City's Investment Policy shall be adopted by the City Council. The Policy shall be updated
as state statutes, GASB regulations or other governmental requirements dictate by the Finance
Director and any modifications made must be approved by the City Council.
FRIDLEY CITY COUNCIL MEETING OF JUNE 25, 2012 PAGE 12
Seconded by Councilmember Saefke.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
9. Informal Status Report
Councilmember Bolkcom thanked everyone who helped with the `49ers Days celebration.
There was a good turnout at the parade.
William Burns, City Manager, added that the Fridley Lions Club also worked hard on this
event.
Councilmember Varichak said she thought everything was outstanding.
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 8:45
P.M.
Respectfully Submitted,
Krista Monsrud Scott J. Lund
Recording Secretary Mayor