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CCM 01/26/2015 CITY COUNCIL MEETING CITY OF FRIDLEY JANUARY 26, 2015 The City Council meeting for the City of Fridley was called to order by Mayor Lund at 7:11 p.m. ROLL CALL: MEMBERS PRESENT: Mayor Lund Councilmember Barnette Councilmember Saefke Councilmember Varichak Councilmember Bolkcom OTHERS PRESENT: Wally Wysopal, City Manager Darcy Erickson, City Attorney Scott Hickok, Community Development Director Jim Kosluchar, Public Works Director Rolland Pogreba, 4941 Roman Road N.E. Nizar Benhaj, 5141 Third Street N.E. Joshua Druley, 5056 Third Street N.E. Richard Palmatier, 5347 Altura Road Don Howard, 5225 Horizon Drive, rd Bryan Scholtes, 4916 3 Street Anita Mansfield, 5012 Hughes Avenue Steve Nielson, 5212 Horizon Drive Laura Carlson, 5048 Hughes Avenue , John Zimmer5013 Hughes Avenue Bernadette Pogreba, 200 Panorama Avenue Charlie Kramasz, 148 Crown Road Beth Rising, 5249 Horizon Drive Roger Dorf,5236 Horizon Drive APPROVAL OF PROPOSED CONSENT AGENDA: APPROVAL OF MINUTES: City Council Meeting of December 22, 2014. APPROVED. City Council Meeting of January 5, 2015. Councilmember Saefke noted on page 46, his name is misspelled in the motion, and on page 47 toward the bottom, it reads Mayor Wysopal. FRIDLEY CITY COUNCIL MEETING OF JANUARY 26, 2015 PAGE 2 Councilmember Varichak asked for language to be fixed on page 46. Councilmember Bolkcom statement doesn’t read correctly where it is talking about Rosenberg book of rules. APPROVED AS AMENDED. NEW BUSINESS: 1.Approve Certificate of Plat Correction for Northern Stacks (Ward 3). APPROVED. 2.Resolution Requesting Municipal State Aid System Construction Funds for Other Local Use. ADOPTED RESOLUTION NO. 2015-05. 3.Approve Change Order No. 1 for Miscellaneous Concrete Repair Project No. 453. APPROVED. 4.Resolution Approving a First Amendment to the Site Current Lease Agreement with T-Mobile Central LLC for Highway 65 Tower #2 (Ward 1). ADOPTED RESOLUTION NO. 2015-06. 5. Motion to Approve the Classification as Non-Conservation and Sale of Tax Forfeit Parcels Identified by Anoka County Resolution No. 2014-144 and Directing Staff to Notify Anoka County in Writing of the Approval. APPROVED. 6.Appointments – City Employees. APPROVED. 7.Claims – (ACH PCard 1501; 166796-167064). APPROVED. 8.Licenses. APPROVED THE LICENSES AS SUBMITTED AND AS ON FILE. FRIDLEY CITY COUNCIL MEETING OF JANUARY 26, 2015 PAGE 3 APPROVAL OF CONSENT AGENDA: MOTION by Councilmember Barnette to approve the Consent Agenda with corrections to the minutes. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. OPEN FORUM: Rolland Pogreba, 4941 Roman Road, reported that there are a lot of stray cats in his neighborhood and it is a nuisance. Mayor Lund replied that a staff person will contact him to see if something can be done to remedy this situation. rd Nizar Benhaj, 5141 3 Street, asked if the City would consider putting in speed bumps on his street when the street project happens this summer. People speed through this area and there are a lot of kids living there too. Mayor Lund replied the City has 120 miles of street and many streets have issues with speeding cars. The Public Works Department does not like speed bumps because they are hard on the snow plows. The Police Department may be able to put up a speed machine to help slow down the cars. If there are a lot of speeding cars, the police may be able to do a saturation and catch the speeders. A lot of times when this is done, it is the residents in the area who are speeding. He asked him to connect with Mr. Kosluchar to have a further discussion on possible remedies for this situation. Councilmember Bolkcom also suggested he talk with Chief Abbott from the Police Department. rd Joshua Druley, 5056 3 Street, lives in the same area and agreed that there is a lot of speeding going on. There are a lot of small kids in the area and this is a safety issue. The problem is rdth between 53 and 49. rdrd Mark Geoffrey manages the apartment complex on 53 Avenue and 3Street, and he also rd agreed about the speeding. He said no one stops at the stop sign on 3 Street and Horizon Drive either. There are many young children in the area and no one feels safe going outside. This needs to be addressed. He also said that he manages the largest apartment complex in Fridley and has a lot of illegal dumping happening at his complex. People dump televisions, mattresses, etc., and then he has to pay someone to haul them away. He has contacted the police for help but recently received a letter from code enforcement to do something about the garbage. He has signs posted saying no dumping and is not getting any help. Code enforcement just sends a letter saying he is polluting the community when the community is actually using his complex as a public service by taking care of their trash. FRIDLEY CITY COUNCIL MEETING OF JANUARY 26, 2015 PAGE 4 Mayor Lund asked if they were dumping outside of dumpster closure. Mr. Geoffrey replied they are dumping inside and all around the dumpster. Richard Palmatier , 5347 Altura Road, said that people speed through his area too. Mayor Lund agreed that it is a very busy area and that a staff person would get back to him. ADOPTION OF AGENDA: MOTION by Councilmember Bolkcom to adopt the agenda. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. PUBLIC HEARINGS: 9.Preliminary Assessment Hearing on 2015 Street Rehabilitation Project No. ST2015-01. MOTION by Councilmember Bolkcom to waive the reading of the public hearing notice and open the public hearing. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING OPENED AT 7:33 P.M. Jim Kosluchar, Public Works Director, stated the City has developed a pavement improvement plan based on rehabilitating the pavement with the intermittent sealcoating. The goal of the City’s pavement improvement plan is to provide satisfactory pavement quality while minimizing costs. Mr. Kosluchar stated this program is in its tenth year. The program was developed to rehabilitate the deteriorated asphalt surface on a recurring schedule. The program targets pavements of a condition where pothole patching, crack sealing, and seal coating is no longer efficient or effective. The annual street rehabilitation program rates the streets condition and groups streets into project areas. The volume of the project is a pricing advantage. The planned project for 2015 was developed under a 5-year street program. Mr. Kosluchar stated the street resurfacing project areas are tentatively designated ten years ahead of project timelines for planning purposes. Poor condition rating of streets gives initiative to rehabilitation of a segment. Factors used to establish the condition rating based on annual inspections include surface wear, crack size and condition, weathering, skid resistance, uniformity and ride quality. Other factors that affect prioritization of projects are if the street does not require reconstruction to meet standards (base, width, curbing etc.), time since last FRIDLEY CITY COUNCIL MEETING OF JANUARY 26, 2015 PAGE 5 major maintenance, interim maintenance work performed/required, adjacent project activity and source(s) of available funding. Mr. Kosluchar stated the project areas are identified in the City’s 5-year capital improvement plan. The current 2015-2019 CIP includes $4.8M in major street rehabilitation in the next 5 years. It is estimated 66% of this construction is funded from special assessments. The proposed work includes Summit Manor Neighborhood in Ward 3. The recommended work includes:  Select underground utility repairs.  Water main replacement on segments of Hughes Avenue, Third Street, Capitol Street, and Horizon Drive.  Sanitary sewer main replacement on segment of Hughes Avenue.  Street segments to receive 8” reclaim and 2” asphalt surfacing  Some drainage improvements depending on funding decision this week. Mr. Kosluchar reviewed the construction timeline. Pavement rehabilitation process is expected to be completed in 10 to 12 weeks of the start date. Construction time would be mid-May to mid-September, 2015. The project will be divided into 3 or 4 phases, and each phase would last 2 to 3 weeks. The reclaiming process allows recycling of the pavement that is removed. Street and access closures are required on the day of paving. Traffic is kept off the new mat for up to 8 hours. Project staff will work with owners on access. Mr. Kosluchar stated when reclaiming the street, the driveway will not be accessible for a few minutes as the machine goes by the driveway. When paving the street, the street will be closed up to 8 hours except for emergency reasons and parking may be restricted. Owners are encouraged to complete the survey and provide and email contact information. The project kickoff notice in April, will include schedule, contractor information and general information. Project updates include the latest schedule, immediate work, access limitations, contacts, specific information, etc. The City will provide “yellow sheets” as needed. Owners should notify staff of any special circumstances or concerns. Mr. Kosluchar stated that property owners have been sent the following mailings: 1.Notice of an open house (October 2014); 2.Project questionnaire to be returned or filled out; and 3.Notice of a public hearing which included estimated special assessment based on policy. Mr. Kosluchar said the estimated project cost is $1,644,000. The amount of $204,000 will be paid by City of Fridley Municipal State aid, $742,000 by special assessment to benefiting properties, $628,000 from the Water Utility Fund, $30,000 from the Sanitary Sewer Utility Fund, and $40,000 from the Storm Water Utility Fund. Mr. Kosluchar said Low Density Residential (LDR) properties accessing the rehabilitated street benefit and are therefore subject to assessment. Assessment is determined by dividing pavement-related costs by the number of benefited properties. Cost is reduced by pro-rating for 30’ standard street and the City pays for additional width. Corner lots are assessed on one side FRIDLEY CITY COUNCIL MEETING OF JANUARY 26, 2015 PAGE 6 only. Oversized lots which may be split are assessed for additional benefit. Multiple unit residential properties up to four units pay the lower of the commercial rate, or the residential rate reduced by 50% for each unit over one. There are 268 parcels subject to LDR special assessment under the City’s policy. He reviewed the historic LDR assessment costs. Mr. Kosluchar said that non-LDR properties include commercial, industrial, and multi-family. They pay 100% of pavement-related costs adjacent to their property frontage. All adjacent streets benefit the property. They pay curb line to the center of the street. There are 22 parcels subject to non-LDR special assessment under City’s policy. He reviewed the historic Non-LDR assessments. Mr. Kosluchar reviewed the repayment of assessment options: Option 1: Lump sum paid within 30 days of the assessment hearing (after construction). Option 2: Added to property taxes that are paid over 10 years with an interest rate of approximately 5.3% (prime rate +2%). Option 3: Senior citizens / disabled individuals meeting certain criteria deferred until the future sale of the property (interest accrued until the sale). Mr. Kosluchar reviewed the repayment of assessment 10 year payment plan at 5.3% for $2,000. He said the total payment over 10 years would be $ 2,583. Mr. Kosluchar said staff recommends the City Council move to open the preliminary assessment hearing on Street Rehabilitation Project No. ST2015-01. Councilmember Bolkcom asked if staff received any telephone calls, letters or emails about the project. Mr. Kosluchar replied about 4 or 5 people responded. Two wanted to know when they could pay or how the financing worked. One may or may not be here tonight, but wanted more information to understand the project and one requested a copy of the presentation. Councilmember Bolkcom asked if these people were for or against the project. Mr. Kosluchar recalled another person wanted to widen his driveway. He did not get a feel if these people were for or against the project. Councilmember Saefke asked if the map of the 10-year plan was available in case people wanted to see the map so they could find out what year their street was scheduled to be redone. People may be able to save money up to pay for their special assessments. Mr. Kosluchar replied the map is available and staff can put it on the website with the presentation. People can request information from the Engineering office by calling (763) 572- FRIDLEY CITY COUNCIL MEETING OF JANUARY 26, 2015 PAGE 7 3552 and asking for the street resurfacing plan. This plan does not identify every street, but notes the neighborhoods the City will be focusing on. Don Howard , 5225 Horizon Drive, said he is not in favor of the project. It looks expensive. He is also confused by the letter because it says to conduct a public hearing to consider authorization and later in the letter is says that you are subject to special assessment. The letter makes it sound like the City has already decided to do the project. Mayor Lund said that property owners will only be assessed if the project is approved. Mr. Howard said his street is in great condition, and that it probably only needs seal coating. He is pretty sure the money could be spent better elsewhere. Councilmember Bolkcom said the reason the letter you received read that way is because it is state statute to notify property owners and let them know that they could be assessed for the project if it is approved. The wording in the letter is all part of the legal notice. It does not mean it is a done deal. Mayor Lund said it is customary when there is a street project, for staff to fix the worst streets first. rd Bryan Scholtes , 4916 3 Street, said some cities in the metro offer a 15-year repayment plan. He asked if that was an option. He also asked about pricing to replace personal sanitary sewer lines. Mr. Kosluchar said the homeowner can get their personal sewer lines televised for free to understand their condition. The cost to fix the sewer lines depends on the circumstances. Prices can range from $2,500 to $5,000 to replace. Mr. Scholtes asked if the City had referrals of contractors to come and give him an estimate. Mr. Kosluchar replied the City has not selected the contractor yet for this project, and the bids would be awarded in April if the project goes ahead. The City has a list of contractors that work in town. He asked him to contact him for the list. Mayor Lund asked if Mr. Scholtes was having problems with this private line. Mr. Scholtes replied that his lines are clay and they are deteriorating. He thought it would be easier to work with his sewer lines when the street work is done. Mayor Lund said being proactive is usually a good idea. He said he did not recall people asking for a longer timeframe to repay street projects; the longer the payment is stretched out, the more interest will be paid. Because the City has been running the project successfully for 10years, he did not think the payment plan would be extended beyond 10 years. FRIDLEY CITY COUNCIL MEETING OF JANUARY 26, 2015 PAGE 8 Councilmember Bolkcom said homeowners can get a loan for 15 years and maybe at a lower interest rate through other lenders. They do not need to use the City’s resources. Anita Mansfield , 5012 Hughes Avenue, said she needs to do something with her sewer main and has had it televised twice. She thought contractors would be at the meeting, and asked if she would be able to hire the contractor they chose to fix her lines. She also asked if her yard would be dug up to fix her line. Mr. Kosluchar said she is free to hire the contractor the City has hired for the main work but the arrangement would be kept separate. They would put in a liner that looks like a sock that is pulled through the line that makes the inside of the pipe look like new PVC plastic. Ms. Mansfield said that her pipe drops off after about 10 feet from her home. She did not know if a new lining in the pipe would fix the problem. Mr. Kosluchar said that it did not sound like a new lining would help her situation. It sounded like the joints may be offset. The lining process is for hairline cracks or root intrusion. If the joints are offset they usually have to be dug up and repaired. Ms. Mansfield asked if the City would let her know when the contractor has been selected so she could speak to them ahead of time. Mr. Kosluchar recommended she get the list of contractors and get a few quotes. Steve Nielson , 5212 Horizon Drive, said he did not think his road was in need of repair but has problems with the sewer and backups at his home. He asked if he could just repair a section of the pipe to his home. Mr. Kosluchar replied if there is just one spot with an offset joint if can be repaired. Different contractors will tell you different things. He recommended the pipe be videotaped to help find out where and what the problem is. Laura Carlson , 5048 Hughes Ave., asked if she paid the assessment in 90 days if she had to pay the interest in full. Mayor Lund replied the interest would only be paid for the 90 days, not 10 years. He also asked if she was in favor of the street project. Ms. Carlson said she did not think her streets were that bad. She was in favor of the project because it would help pay for sewer repair that really needs to be done. Mayor Lund said that homeowners will only be assessed just for the street project, the sewer repairs will be paid out of funds set aside for ongoing maintenance of the infrastructure. Attorney Erickson reviewed the payment options. The entire assessment can be paid with zero interest if paid within 30 days. If the amount is not paid in 30 days but paid before it is certified, FRIDLEY CITY COUNCIL MEETING OF JANUARY 26, 2015 PAGE 9 the interest accrued during that time period would be paid. If the payment is made any time after certification, the balance must be paid plus that year of interest. For example if in 2016 I wanted to pay off my assessment I would pay the assessment plus the first year of interest, not 10 years of interest. Mayor Lund said that once the assessment is certified to taxes, the county does not have the ability to charge less than annual interest charges. Councilmember Bolkcom said people have been talking about patches on their street. Staff spent a lot of time patching holes. She asked what else happens with streets. Mr. Kosluchar replied prior to any pot holes being formed, cracking is what staff is looking for. Adhesion of asphalt will not be maintained so resurface is the answer. Sealcoat will help, but once the street is cracking, sealcoat is a short term measure. This year may not be a perfect year for every segment, but we are working in that neighborhood. If this street is bypassed, we will not be back for another 30 years to address the street. The street is showing wear and the street will not last another 30 years. Mayor Lund asked if there was substantial alligator cracking on these streets. Mr. Kosluchar replied yes, the rate of the street was 20 which put it on the edge to replace the street. Ellen Strelow , 5373 Horizon Drive, asked how to contact the department to come out and televise the sewer lines. Mr. Kosluchar said to contact the Public Works garage at 763-572-3566. A crew will come out to televise free of charge. The crew does need to get into the home, so an appointment will need to be made. They will explain to the homeowner what they are looking at and what they find. Mayor Lund asked if Ms. Strelow was in favor of the project. Ms. Strelow said the jury was still out. It is a lot of money. John Zimmer, 5013 Hughes Avenue, said he was concerned about access to his driveway when the street is torn up. Mr. Kosluchar replied that staff would help him find a way to his home. There may be times where there could be limited access and people will have to park and walk to their home. If the street is torn up to replace sewer lines they will close it up every night. If there is 300’ of sewer line to replace, they will replace 40 to 50 feet at a time. Mr. Zimmer said he is in favor of the project. He looked at the numbers and the prices go up every year. With the fuel oil down now, maybe it will be lower than the assessment. He works for an asphalt company and knows that everything tends to go up every year. FRIDLEY CITY COUNCIL MEETING OF JANUARY 26, 2015 PAGE 10 Mayor Lund agreed and noted that the biggest price is the asphalt. It is possible there will be more favorable prices this year. Staff usually errs on the high side but you never know until it goes out to bid. Mr. Zimmer asked how thick the asphalt layer would be. Mr. Kosluchar replied 2 to 3 inches, with a reclaim base and sandy soil. Councilmember Bolkcom noted that if bids come in too high, staff has the option not to do the project. Bernadette Pogreba , 200 Panorama Avenue, said she is for the project and agrees the streets need to be done. Charlie Kramasz, 148 Crown Road, said he is in favor of the road improvements. Joel Dzubak, 129 Horizon Circle, asked if staff were coordinating with CenterPoint Energy to put in the new gas service at the same time. Mr. Kosluchar replied yes, they have met with CenterPoint Energy and if the project goes ahead, they will do a large amount of the replacement at the same time. Mayor Lund added that is pretty typical when the streets are done to get in touch with other utilities. Mark Geoffrey asked if the assessment repayment plans were available to the commercial properties. Mayor Lund replied yes and they pay a higher assessment. Mr. Geoffrey said that his property has a lot of footage. They own large chunk of Third Street. Mayor Lund asked if he was in favor of the project. Mr. Geoffrey answered yes. It will make the community better. Beth Rising , 5249 Horizon Drive, said she had concerns about the current project and did not think her street needed it. Councilmember Bolkcom asked Mr. Kosluchar if this street was not done now, when would it be done. Mr. Kosluchar replied that it would be beyond 20 years before they would get back into a neighborhood--maybe 18 to 20 years. FRIDLEY CITY COUNCIL MEETING OF JANUARY 26, 2015 PAGE 11 Councilmember Bolkcom said if residents on one street feel they do not need repair, they could get a petition together with a majority of the homeowners on the street signatures knowing it may not be repaired for quite some time. The petition could be submitted and taken into consideration. Mayor Lund added that there are other factors involved in deciding which streets need repair. The City tries to look at the worst areas first, and then moves on to different segments of the City. Staff is consistently reviewing or grading our streets. Taking out segments will elevate the price. There are plenty of streets in the City that need repair. Fridley has over 100 miles of streets and this project is less than five miles. Think about how long it will take to repair all of the streets. Ted Beecroft , 5256 Capitol Street,asked what happened to the project that was going to lessen the heavy garbage trucks on the streets. Mayor Lund replied that project failed. The City will continue with the open garbage system. The majority of the Council voted no to that proposal. Mr. Beacroft said that will still put a lot of weight on the street. He moved in 30 years ago and has in the past footed the bill himself for street reconstruction. He is in favor of the project. Roger Dorf, 5236 Horizon Drive, is against the project. Dave Palm , 5228 Capitol Street,said he does not live at the home, but is trying to sell some property due to a death in the family. He asked if he sold the property before the assessment was levied if he had to let the new owners know of this project. Darcy Erickson , City Attorney, said that the closing company will contact the City to see if any projects are scheduled. It will probably be apportioned in the purchase agreement. Mr. Kosluchar said that once Council authorizes the project to move forward, the resolution would go into effect and every property would be subject to assessment. Mr. Palm asked if the project would start this spring. Councilmember Bolkcom said this will be on the February 9 agenda. Richard Palmatier , 5347 Altura, asked how the City arrived at the $1.644M. Mr. Kosluchar replied that is based on a unit price estimate. The preliminary cost is based on the preliminary plan. Mr. Palmatier asked how many miles would be resurfaced. Mr. Kosluchar replied 2.8 miles, but half of the costs are utility costs. FRIDLEY CITY COUNCIL MEETING OF JANUARY 26, 2015 PAGE 12 Mr. Palmatier said he heard the City of Chanhassen is doing 40 miles of street for $2.0M. Mr. Kosluchar said they are probably not doing the same process. For that price it is probably an overlay or sealcoat project. He will check with his counterparts in Chanhassen and see what they are doing. Mr. Palmatier said he has a bump at the end of his driveway and wanted to know if he could get that addressed at the same time. He asked if the contractors who do the work for the city also resurfaced driveways. Mr. Kosluchar replied that is not true of all contractors; each contractor makes their decision if they would like to do other work or not. Some people have had success with companies doing their driveways and they have done a good job. It is best to talk to the contractor before they are working in your neighborhood so they can plan ahead. Councilmember Bolkcom added that years ago it was common for contractors to offer the service of resurfacing driveways but the condition of the driveways had very poor quality. Those getting quotes to get their driveways fixed need to make sure they are looking at licensed and bonded contractors to ensure quality product. Mr. Palmatier said he is leaning toward in favor of the project but has not totally decided. Nizar Benhaj asked if there would be any additional surprise costs in addition to the assessment. Mr. Kosluchar replied no, not City-related. rdth Mr. Benhaj asked if a sidewalk would be considered between 53 and 49 Avenues. There is a lot of traffic on the street and this would prevent accidents. Mr. Kosluchar replied if the neighborhood is interested, they could start a petition and the City could consider the request. A sidewalk would be subject to an assessment and would be a shared expense between the City and homeowner. Mayor Lund said the project in Chanhassen is 4.3 miles long according to the information online. MOTION by Councilmember Bolkcom to close the public hearing. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING CLOSED AT 9:02 P.M. FRIDLEY CITY COUNCIL MEETING OF JANUARY 26, 2015 PAGE 13 NEW BUSINESS: 10.Approve Agreement with Split Rock Studios to Provide Design Development for Interpretive Exhibits at the Springbrook Nature Center (Ward 3). Jack Kirk , Parks and Recreation Director, said he recommends the City enter into an agreement with Split Rock Studios to provide the formal design development of the exhibits for the Springbrook interpretive building that is being remodeled and expanded. An important component of the new and expanded Nature Center building will be educational and inspiring exhibits. Split Rock Studios is a local business (north metro-St. Paul area) and is a nationally known exhibit design and fabrication company. They specialize in creating cultural and natural history exhibits for museums, interpretive centers, aquariums and zoos. Mr. Kirk said the estimated $5.4 million budget for the building expansion and renovation includes a budget line item of $324,390 for new exhibits. The exhibit design work provided by Split Rock Studios will provide for a combination of new exhibits and some of the current exhibits that are in place today at Springbrook. The plans will also provide ideas on future exhibits to be included when additional funding has been raised. Mr. Kirk said the services provided by Split Rock Studios will include working closely with the SPRING Project Committee on the exhibit design. At the conclusion of the process in May, we will expect final floor plans for exhibits that have been coordinated with the building plans provided by our architects. The exhibit construction techniques, finishes, colors and materials will be finalized. They will be providing us with a detailed production and installation schedule, along with an updated budget of the exhibit components. Mr. Kirk said the proposed fee for the exhibit design services is $41,680. The $5,000,000 State Grant being provided to the City of Fridley for the improvements to the Springbrook Nature Center will be used to pay for the exhibit design services. It is staff’s recommendation that the City Council approve the attached Agreement for Professional Services with Split Rock Studios to provide a design development package for interpretive exhibits at the Springbrook Nature Center. MOTION by Councilmember Bolkcom to approve an Agreement with Split Rock Studios to Provide Design Development for Interpretive Exhibits at the Springbrook Nature Center. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 11.Resolution Approving the Transfer of the Cable Franchise and Change of Control of the Grantee. Wally Wysopal, City Manager, stated a public hearing was held on January 5, 2015, in accordance with City Code, Chapter 405A, to transfer the franchise owned by Comcast to GreatLand Connections. GreatLand Connections, as a newly created company, will require third FRIDLEY CITY COUNCIL MEETING OF JANUARY 26, 2015 PAGE 14 party assistance to address many operating issues such as programming agreements, customer service, billing, technical support and related issues. Charter Communications will be the company which will fundamentally run the business under a third-party agreement. Charter has the right to purchase GreatLand in 5 years and if that occurs, it would require Council approval. Essentially, Charter Communications will be operating the cable business in the Twin Cities. Mr. Wysopal stated the City and multiple cities negotiated collectively with Comcast. Outside legal counsel was obtained and provided by Brian Grogan, Esq. Approval was made contingent upon several items from Comcast, including the payment of all legal fees and costs associated with the due diligence review of the transaction and the new franchisee. The reimbursement is not considered a part of the franchise fee, so it does not reduce the City’s anticipated income. The reimbursement is not contingent on the transfer being approved, so if the deal falls apart, the City will still get reimbursed. It also included the back payment from Comcast for underpaid fees due the City of Fridley which amounted to $2,220.96. Mr. Wysopal stated GreatLand Connections also stipulated to several items of concern expressed by the City. GreatLand will provide an escalated complaint system whereby the City will have the ability to expedite serious and persistent resident complaints up the command chain at GreatLand. GreatLand will also meet quarterly with the City for the first 2 years to monitor and affect the transfer of the franchise. There are some concerns the City has that are outside of the Franchise authority. These include the content subscription offerings, equipment utilization, automatic bill payment processing and personal internet address. GreatLand has offered assurances that customers will not need to purchase new equipment and that content subscriptions will remain the same as with Comcast. However, such assurances are not for certain because the franchise does not deal with such issues. Likewise, the City has no authority to affect the other items of concern. Mr. Wysopal said upon the transfer, residents should expect the need to change payee settings on their automatic bank payments and create a new email address if they have Comcast-provided email service. Beyond the personal inconvenience, the City has a concern that customers may use this change of companies to drop cable. The City receives approximately $270,000 in revenue from the cable franchise which is used to support our cable TV and communications functions. Staff recommends approval of the transfer of the Cable Franchise and Change of Control of the Grantee. Councilmember Barnette asked why Comcast was doing this. Mr. Wysopal replied Comcast has too many cable providers throughout the country. There is a certain number threshold and the federal government then considers it a monopoly and this puts them into that limit. GreatLand has the right to sell to Charter Communications in 5 years. It appears they are going in that direction. MOTION by Councilmember Saefke to adopt Resolution No. 2015-07. Seconded by Councilmember Barnette. FRIDLEY CITY COUNCIL MEETING OF JANUARY 26, 2015 PAGE 15 UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 12.Informal Status Reports James Kiewel brought up information from his past appeal hearing. Mayor Lund replied the appeal hearing is now closed. Attorney Erickson added Mr. Kiewel needed to communicate future information with staff. The appeal hearing is closed and the resolution was passed. Mr. Kiewel asked when the next Council meeting was. Councilmember Barnette replied February 9. Mayor Lund said that he needed to reach the City Manager or staff if he wanted to be on the agenda. Councilmember Bolkcom announced theSpringbrook Nature Center open house on February 2 from 5:30 p.m. to 7 p.m. Come see the first view of the new design. The design will be up on the website after the open house. Councilmember Varichak attended Winterfest. There were a lot of kids, and the event was a huge success. Kudos to the Parks and Rec staff and all those who helped plan this event. 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 9:25 P.M. Respectfully Submitted, Krista Peterson Scott J. Lund Recording Secretary Mayor