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CCM 07/27/2015 CITY COUNCIL MEETING CITY OF FRIDLEY JULY 27, 2015 The City Council meeting for the City of Fridley was called to order by Mayor Lund at 7:00 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 James Kosluchar, Public Works Director Donald Anderson, Jr.,7304 West Circle NE Craig Hanson, MN Hotel Partners LLC Charlie Kramasz,148 Crown Road PRESENTATION: Fridley Flames donation to the Fire Department. APPROVAL OF PROPOSED CONSENT AGENDA: APPROVAL OF MINUTES: City Council Meeting of July 13, 2015. APPROVED. NEW BUSINESS: 1. Receive the Planning Commission Minutes of July 15, 2015. RECEIVED. FRIDLEY CITY COUNCIL MEETING OF JULY 27, 2015 PAGE 2 2. Approve the School Resource Office Program Agreement between the City of Fridley and Independent School District #14. Wally Wysopal, City Manager, stated this Agreement is between the City and the Fridley School District and goes through June 2017. This provides extra police services for the school district. The City will get reimbursed for the associated costs. Councilmember Barnette asked if the resource officer served during the school year. Mr. Wysopal replied correct. Councilmember Barnette asked if the officer went back to regular duty in the summer. Mr. Wysopal replied the officer would be deployed to other assignments. Councilmember Barnette asked if the salary was figured out accordingly. Mr. Wysopal replied yes. APPROVED. 3. Receive Bids and Award Contract for the 2015 Miscellaneous Concrete Repair Project No. 473. Mr. Wysopal stated this is in the amount of $91,900.00 to Kassa Construction. RECEIVED AND AWARDED THE CONTRACT FOR 2015 MISCELLANEOUS CONCRETE REPAIR PROJECT NO. 473 TO RON KASSA CONSTRUCTION, INC. 4. Claims (169105 - 169247) APPROVED. 5. Licenses APPROVED THE LICENSES AS SUBMITTED AND AS ON FILE. FRIDLEY CITY COUNCIL MEETING OF JULY 27, 2015 PAGE 3 ADOPTION OF PROPOSED CONSENT AGENDA: MOTION by Councilmember Barnette to approve the proposed consent agenda. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. ADOPTION OF THE 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. OPEN FORUM: Donald Anderson, Jr., 7304 West Circle NE, asked whether Maxwell's Street Grill next to SuperAmerica is supposed to have a sign on their billboard. Mayor Lund replied, there is no requirement that he knows that they have to have a sign. He would think a business would want to have a sign. Scott Hickok, Community Development Director, stated the sign code would allow a sign in that direction. They have just chosen not to have one apparently. Mayor Lund suggested that Mr. Anderson ask the restaurant. Mr. Anderson replied just so they get more business. NEW BUSINESS: MOTION by Councilmember Bolkcom to change the order of the Agenda and have Item 7 the first item of business. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF JULY 27, 2015 PAGE 4 7. Preliminary Plat Request, P.S. #15-01, by MN Hotel Partners, LLC, to Create a Separate Lot on the Southwest Corner of the Property to Allow the Construction of a Hotel Project, Generally Located at 250 - 57th Avenue N.E. (Ward 3). Scott Hickok, Community Development Director,stated petitioner is requesting a plat to further subdivide the lot at 250 - 57th Avenue N.E., which is Fridley Market. Redevelopment will create a separate lot for potential development of a 124-room hotel project. The two lots will be legally described as Lot 1 and Lot 2, Block 2, Fridley Market Second Addition. Lot 1 will be 525,280 square feet or 12 acres in size. Lot 2 will be 83,560 square feet or 1.9 acres in size. Mr. Hickok stated the Planned Unit Development, C-3 zoning, does not have a lot size minimum or maximum. Typically when they are talking about plats, it is about what the zoning is saying. Does it meet the minimum? Does it meet the maximum? Does it meet the plat requirements? Since this is a PUD, they do not have that standard. The C-3, General Shopping Center, minimum size is 35,000 square feet, which would be the most similar zoning. That is the designation the City would use to make a comparison here. As a result, the proposed subdivision would comply with Code requirements. Mr. Hickok presented a photo of what the plat would look like. The hotel would be a neighbor to the Teppanyaki Grill that is on the highway side of the Cub Foods development and would face the highway. The name of the hotel will be Woodspring Suites, and it will be a very nice complex. Mr. Hickok stated the Planning Commission held a public hearing for this plat on July 15. After some discussion, the Planning Commission recommended approval of the plat with four stipulations. That motion carried unanimously. Councilmember Bolkcom stated a lot of the Planning Commission's discussion was related to parking, which does or does not enter into this. When she drives by the Teppanyaki Grill, it does seem like it is really packed. Mr. Hickok replied, the one thing that was missing from that whole discussion with the Planning Commission was the illustration of the plat. One of the things that becomes clear when looking at this illustration is the added parking that does not exist right now on the site. You see a lot of green space in the area where the hotel will be. This parking is commensurate with the number of stalls that are required for a 124-bed hotel. It will have enough parking stalls to accommodate its own needs and still happily exist with the Teppanyaki Grill. Councilmember Bolkcom asked if he would show the parking for just the hotel and asked if there would be any signage. FRIDLEY CITY COUNCIL MEETING OF JULY 27, 2015 PAGE 5 Mr. Hickok replied, part of this Planned Unit Development is that they will have cross parking easements. It is exciting to see parking and see a market place that is alive like this. There are no concerns on the part of the developer, Cub Foods, or the hotel that there will be inadequate parking. Councilmember Bolkcom asked and City staff. Mr. Hickok replied or City staff. Councilmember Bolkcom asked Mr. Hickok to summarize what page 62 said. Mr. Hickok replied, this is the plat page that gets filed with the plat itself. Basically, this is the signature page that the owners of the Fridley Market will sign. There is a place for the Mayor and City Clerk to sign as well. At this scale, it is hard to read. They have had problems like this before. The original is 40 inches by 30 inches. Councilmember Bolkcom stated they have talked about this numerous times. If they could have it blown up a little so they could read what it says. Councilmember Bolkcom asked Mr. Hickok if he could expand a little bit on the colors and finishes. Mr. Hickok replied, in their packet they also saw some illustrations that kind of demonstrate types of materials that will be used on the building. They are of high quality that the City is pleased to see. There are certain requirements that need to be met, and staff had talked to the developer. They are absolutely in line with the requirements, and are suggesting they would use materials and colors that would complement the main structure on this site. It also comes from the color pallet which the developer has chosen for the Market Place. Councilmember Saefke said on page 59, in the corner, there is a broken line circle. What is that? Mr. Hickok replied that actually shows circulation for truck movement. Craig Hanson , MN Hotel Partners LLC, stated this is going to be a 124-unit extended stay product. The brand was developed by the same person who developed Residence Inn which is now a Marriott product. With respect to the parking, they think there will be sufficient parking. There will also be cross-parking agreements with the overall development which provides overflow parking if need be. In addition, hotels in general have more parking at night, so if there FRIDLEY CITY COUNCIL MEETING OF JULY 27, 2015 PAGE 6 is parking needs during the day for the development, that should not affect them at all. This hotel chain has about 210 facilities around the U.S. Councilmember Barnette asked when construction would begin. Attorney Hanson stated they will complete the preliminary plat process in August. Then, pending the completion of the site plan, they are hoping it will begin in September or October. Councilmember Bolkcom asked the petitioner if they agreed to the four stipulations. Attorney Hanson replied, yes, they are. MOTION by Councilmember Bolkcom to approve Preliminary Plat Request, P.S. #15-01, by MN Hotel Partners, LLC, with the following four stipulations: 1. The property owner, ZCOF TL Fridley LLC, shall establish and file at Anoka County a shared access agreement between Lot 1 and Lot 2, Block 1, Fridley nd Market 2 Addition, upon final plat approval. 2. The property owner, ZCOF TL Fridley LLC, shall establish and file at Anoka County a shared parking agreement between Lot 1 and Lot 2, Block 1, Fridley nd Market 2 Addition, upon final plat approval. 3. Park dedication fee for Lot 2 of $1,921.88 to be paid upon issuance of a building permit for a building for Lot 2. 4. The pedestrian walkway along the western property line that was approved with the PUD master plan for this site shall be constructed as part of the development nd of Lot 2, Block 1, Fridley Market 2 Addition. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION by Councilmember Bolkcom to return to Item No. 6. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 6. First Reading of an Ordinance Amending Chapter 11. General Provisions and Fees, Section 11.10., Fees, Pertaining to Fire Department Review of Sprinkler Plans. FRIDLEY CITY COUNCIL MEETING OF JULY 27, 2015 PAGE 7 Walter Wysopal , City Manager,stated the reason this is being brought before Council is because it is a result of some reorganization that is taking place within the Fire Department. It was discovered that the City has a permit review process and the Fire Department is not charging what it has the right to do. The Minnesota State Fire Code provides that a city that adopts the code can charge to recover its costs like it does for building codes and other types of planned reviews. In identifying that, staff wanted to make this change and bring it forward in the first reading. Staff asks that if Council has any questions, that they be brought up when the Fire Department is present at the second reading. Again, this is basically the identification of the City's revenue stream, essentially a cost the City is not recovering like it does from other types of building construction projects. Mayor Lund stated his only question would be that the 65 percent of the fire permit fee seems standard. There must be some calculation already in place with the State about what the permit fee is. Mr. Wysopal replied that is correct. Mayor Lund stated the City is charging for a permit under that calculation factor. It is not charging for the review. Mr. Wysopal replied correct. Councilmember Bolkcom stated as she understands there will be a fire permit fee and then there is a plan review which is 65 percent as an additional charge. Mr. Wysopal replied correct, because it is representing that additional time it takes to do that portion of the fee. Councilmember Bolkcom asked where does the 65 percent come from? Mr. Wysopal replied that is what is suggested from the Fire Department as it relates to the way the City does its other calculations for other building review and that type of thing. Councilmember Bolkcom stated that is a standard charge from State law or a standard charge across the board with everything else. Mr. Wysopal replied both would be the right answer--both the State Statute and the City's. MOTION by Councilmember Saefke to waive the reading of the ordinance and adopt the ordinance on first reading. Seconded by Councilmember Barnette. FRIDLEY CITY COUNCIL MEETING OF JULY 27, 2015 PAGE 8 UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY 8. Approve Mississippi Watershed Management Organization Capital Project Grant Agreement for Fridley 2015 Street Reconstruction Water Quality Improvements. James Kosluchar , Public Works Director, stated during the 2015 street project feasibility analysis, the City knew this project was in an older area of Fridley and there was basically no stormwater treatment that exists. It is important because of the City's new stormwater requirements which continue year by year to get a little more demanding. In the long run, the City has to provide for removal of phosphorus and suspended solids in the coming years. Mr. Kosluchar stated City staff along with the City's partners at the Anoka Conservation District looked at ways they could remove these pollutants. In late 2014, the City applied for Clean Water Fund dollars that are allocated through the Legacy amendment from the State. The City was notified in early 2015 that the City's project was not accepted. The City's partners at Mississippi Watershed Management Organization contacted the City knowing that it did not get the funding and asked whether the City could delay the project long enough for them to try to fill the funding gap in order to make those stormwater quality improvements a reality. They know this neighborhood probably will not be touched as far as major pavement rehabilitation for at least 30, more like 40 years. The City has been working closely with them to provide details per their funding requests. Mr. Kosluchar stated the recommended improvements the City has developed include a stormwater chambering infiltration at Summit Square Park. This is on the southwest corner of Hughes and Horizon. Summit Square Park is actually two pieces across Hughes from one another, and it would treat 30 acres of runoff using 84-inch diameter pipes Those actually are perforated so they exfiltrate. The specific area is where the skating rink area is located during the winter. From Horizon and 53rd there is an 18-inch pipe that takes the stormwater from the north side of 53rd and routes it down to Hughes. Fortunately, the City has a system that routes it right back to 53rd. It works really well. Mr. Kosluchar stated the other elements they are talking about as part of this grant include pavement removal. There is a half cul-de-sac on Hughes Avenue where they can remove over 2/10ths of an acre of impervious surface to modify that to turf. It also reduces the City's pavement in winter maintenance. Councilmember Saefke asked what is going to happen to the property where the surface is going to be removed. FRIDLEY CITY COUNCIL MEETING OF JULY 27, 2015 PAGE 9 Mr. Kosluchar replied the surface would be moved to the center. The City's proposal is to go either with the one-way or two-way street around the exterior. Staff will be talking with the residents adjacent. Mr. Kosluchar stated the third major item in the plan is to have some pavement bumpouts (chokers). Basically they narrow the road at that location. The City would remove some impervious surface under that and provide some stormwater treatment, and it may reduce speeds. It is actually a traffic calming element as well, and the City has heard from several residents on Third Street about speeds being an issue. Councilmember Bolkcom asked how much would it narrow the street. Mr. Kosluchar replied it is 8 feet on each side. The City has a 40-foot street width. Councilmember Bolkcom asked if there were any disadvantages. Mr. Kosluchar replied, the disadvantage is that it takes away parking in that one stretch at that location. Basically those chokers are between 20 and 30 feet long. It takes up two parking spots on the street. Councilmember Bolkcom asked, and how many chokers are there? Mr. Kosluchar replied there are 10. There are 5 sets. About 20 spots. Councilmember Bolkcom stated it could be an issue. Mr. Kosluchar stated it could be an issue, but the City will be talking with the residents about that. Again, this being a Grant Agreement, if there is strong opposition, they would come to Council and ask for guidance. If there was extremely strong opposition in one location, they can certainly be flexible and shift things around. Councilmember Bolkcom stated it seems like this is pretty significant. The City has had a street meeting. She asked whether the City would bring everyone back together to talk about this because it could be important to some people. How does staff plan on getting information out to them? Do they individually go around? This significantly changes the whole project. Mr. Kosluchar stated on August 5, on the Third Street issue, and on the Hughes cul-de-sac, staff plans to have an evening meeting on site. The Hughes cul-de-sac affects a handful of people, and they will have that at 6:30 p.m. The Third Street meeting would start at 7:15 p.m. They will have a representative from the Police Department there who has done some speed assistance with FRIDLEY CITY COUNCIL MEETING OF JULY 27, 2015 PAGE 10 staff. If people cannot make it, staff will talk to them individually. If Council approves the grant agreement, those notices will be going out tomorrow. Obviously if Council rejects the Grant Agreement then staff would not send those notices out. Councilmember Bolkcom expressed concern it was the night after Night to Unite. Mr. Kosluchar stated with those elements included at its July meeting, the MWMO approved an expanded funding of $342,200. This will add to the City's $75,000 allocation within the CIP (a source from the stormwater utility fund). The Grant Agreement before Council formalizes the MWMO's commitment. As to the draft agreement in the packet, unfortunately staff needed some final work done on the insurance section, Section 13. He referred to the new one he handed out earlier in the evening with a new Section 13 which allows the City to determine what insurance should be necessary. Basically, it gives the City more flexibility. Mr. Kosluchar stated for the 2015 street project, the project schedule has already been affected. Typically they would be in the midst of the City's utility work right now. CenterPoint Energy has been out and has done the majority of their work. The City has done some recent tree removal. Plans are prepared for the stormwater items so if Council approves this, staff would incorporate those plans with the City's bid letting on August 6. That means the City would take bids on August 6 and bring them to Council for awarding on August 10 with a recommendation. Construction will continue into 2016. The final assessment will be held back to the fall of 2016. There will be no impact on special assessments to have this work. Staff will be sending an update to property owners this week regarding the schedule obviously and some changes with that. Mayor Lund stated 53rd to Horizon would be the project area staff expects to still complete this year? In 2016 it would be below 53rd? Mr. Kosluchar replied, yes. Actually it is 53rd to Panorama. Mayor Lund stated and then north of 53rd and south of Panorama would be next year. Mr. Kosluchar replied, that is staff's anticipation. However, a contractor may want to come in and do the north, south section. His guess is that it will be broken up into three pieces. Councilmember Bolkcom stated why do they have to go out so soon for the bids? Mr. Kosluchar replied, it is only to maintain whatever construction season the City has left to make progress on this project and to allow the City time for meaningful construction. That is FRIDLEY CITY COUNCIL MEETING OF JULY 27, 2015 PAGE 11 really his concern at this point. As far as the date, he knows that Wednesday and Thursday of that week the police officer is available to meet with the residents. Councilmember Bolkcom stated she is concerned if someone cannot make it August 6. Mr. Kosluchar replied they have received feedback and have talked to several residents about the speed on Third Street. He would be a little bit surprised if people were opposed to this. However, if there was opposition, that is something the City could modify. They can do so with a change order as well. Councilmember Bolkcom asked the City Attorney, they have had a public hearing related to what the project is going to be, can they change the project. Darcy Erickson, City Attorney, replied, this portion of the project is not an assessment that will be made against the properties. Therefore, it does not fall under the 429 requirements as a local improvement. Councilmember Bolkcom stated legally it does not, but in a sense the City is really changing the project. Mr. Kosluchar replied the City is making the project better. His recommendation will be to notify and, once they get a contractor on board and find out what their schedule is, staff will notify again. If there are concerns, they will meet with people. He does not know if construction into September/October is going to have an impact. For those construction elements that move into next year, he does not know of any persons who have really allocated something in their lives that would be impacted by that outside of what would normally be impacted in a street project. Councilmember Bolkcom stated no one is going to get an assessment until the project is done. Mr. Kosluchar replied correct. Councilmember Bolkcom asked how is the agreement they received tonight different than what was in the packet. Mr. Kosluchar replied Section 13, Insurance, is replaced. Councilmember Bolkcom asked the City Attorney what is the change? FRIDLEY CITY COUNCIL MEETING OF JULY 27, 2015 PAGE 12 Darcy Erickson, City Attorney, said it actually does simplify the insurance provision. The new language replaces the requirement that both the City and its contractor maintain insurance policies, and now provides that the City may, at its discretion, provide the appropriate insurance that it would desire for this. It actually gives the City more flexibility than what was set forth in the original Agreement. Councilmember Bolkcom asked what is a bioswale bumpout? Mr. Kosluchar replied, it is a combination of a stormwater treatment element. Kind of like a rain garden. What they do is bump out the curb. Councilmember Bolkcom stated the City has received some grief about how the rain gardens look. How are these going to be different? Mr. Kosluchar replied they have avid participants whom Kay Qualley has been working with. Councilmember Bolkcom stated she is not opposed to the meeting night. She would like to see something go out tomorrow to each and every individual in this area explaining things to them and how they can participate if they are unable to attend that night. It would be a good opportunity to have some literature at the Night to Unite. Mr. Kosluchar stated, yes, staff will have notices for those parties affected on Third Street and on the cul-de-sac hand-delivered tomorrow. Mr. Wysopal stated he wanted to assure them that the reason they are doing it is for good solid reasons and that is they did not want to just go and do a project that would kind of kick the can of problems this area has with regards to stormwater. As they will recall, the City had a lot of people complain about speed and traffic issues as people throttle to 53rd and University. What the police were finding is that it actually begins at an earlier point. Slowing that kind of thing down became a very significant thing at the staff level. Mr. Wysopal apologized if staff did not keep Council informed as to what they were working on. As always, staff is seeking alternative revenue sources to get these things done. But for these funds, the City would not be able to do that. He acknowledges the fact this is a lot to turn around on and see differently. However, this will be the third time the City is incurring a delay on the project because they are trying to make it a better project, from the stormwater to the snow plowing to the speeds. They guarantee that if the neighborhood/community is not ready to do this, the City will not push it harder than that. Staff wants to make sure they are informed. FRIDLEY CITY COUNCIL MEETING OF JULY 27, 2015 PAGE 13 Mr. Kosluchar stated the MWMO has been great. They established this program where the City of Fridley is actually the first to get this kind of new series of capital dollars. Part of that timeframe was not of the City's making but as dictated by MWMO, but at the same time, they have gone through some complicated deliberations to get to this point. It is a lot of information for the Council. There are a lot of changes and things staff has been working on for months. Councilmember Bolkcom asked what would happen if the City just said it is not going to do it this year? Mr. Kosluchar replied, the Grant Agreement actually terminates at the end of October next year. Mayor Lund asked a citizen, Charlie Kramasz, present in the audience if he had any questions relative to when his street is going to get done and about his driveway.? Charlie Kramasz, 148 Crown Road, stated, no, he has been in contact with Don Roberts. He keeps seeing the website and sees the same thing, it starts up in the spring, and he does not see any changes. Now he heard this is a third revision. He is trying to widen his driveway. The City has done him a favor and taken his tree out. He does not want to push too hard. Mayor Lund stated Mr. Kramasz wanted to widen his driveway 20 feet and would like his curb to be widened at the same time, if the City has to replace the curbing that was uprooted from the tree. Mr. Kramasz stated he thought the three trees there uprooted all but two sections of his curb. Mayor Lund asked whether those affected curbs that need to be replaced have been identified by some paint lines. Mr. Kramasz replied, yes, absolutely. Mayor Lund asked does that paint line go into or outside the driveway? Mr. Kramasz replied, outside the driveway unfortunately. Mayor Lund stated he may need to talk to City staff about having the curb replacement done at the same time. He asked Mr. Kosluchar about the City's expense in redoing the curb. FRIDLEY CITY COUNCIL MEETING OF JULY 27, 2015 PAGE 14 Mr. Kosluchar replied it is the property owner's expense. They do have to come in, and the City's contractor will install the curb. The City will charge the fee they awarded tonight under the miscellaneous concrete contract. Mayor Lund asked what the cost per foot was. Mr. Kosluchar replied he wanted to say about $26, $28 per foot. It depends on restoration and some other things. Mr. Kramasz stated he expected that. MOTION by Councilmember Bolkcom to approve the Mississippi Watershed Management Organization Capital Project Grant Agreement for Fridley 1015 Street Reconstruction Water Quality Improvements, amended by replacing with new Section 13, Insurance. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 9. Informal Status Reports Mr. Wysopal presented a short video regarding the City's new website. 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 8:12 P.M . Respectfully submitted by, Denise M. Johnson Scott J. Lund Recording Secretary Mayor