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CCM 03/13/2017 CITY COUNCIL MEETING CITY OF FRIDLEY MARCH 13, 2017 The City Council meeting for the City of Fridley was called to order by Mayor Lund at 7:00 p.m. ROLL CALL: 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 APPROVAL OF PROPOSED CONSENT AGENDA: APPROVAL OF MINUTES: City Council Meeting of February 13, 2017. APPROVED. OLD BUSINESS: 1.Second Reading of an Ordinance Amending Fridley City Charter, Chapter 2, City Council Organization. WAIVE THE READING OF THE ORDINANCE AND ADOPTED ORDINANCE NO. 1342 ON SECOND READING AND ORDERED PUBLICATION. 2.Final Plat Request, PS #17-01, by Allina Health System, to Replat Lot 3 of Block 1, Unity Addition, to Create Three Lots that will Further Define and Legally Describe the Parking Lot Areas, Generally Located at 550 Osborne Road N.E.; and Resolution Approving Final Plat, PS #17-01, by Allina Health System to Legally Describe and Define Parking Areas, Generally Located at 550 Osborne Road N.E. (Ward 1) ADOPTED ORDINANCE NO. 2017-07. FRIDLEY CITY COUNCIL MEETING OF MARCH 13, 2017 PAGE 2 3.Resolution requesting Municipal State Aid System Construction Funds for Other Local Use (Street Improvement Projects ST2017-01 and ST2017-021). ADOPTED ORDINANCE NO. 2017-08. 4.Resolution Approving Agreement Relating to the Reimbursement of Water and Sanitary Utility Service Overcharges Occurring from 2008 through Mid-2015 in the Amount of $556,067.68 Relating to Anoka County Tax Parcel ID No. 30-30-24-13-0015. ADOPTED ORDINANCE NO. 2017-09. 5.Approve Amendments to Contract A113 between the City of Fridley and McGough Construction. APPROVED. 6.Approve Amendments to Contract B101 between the City of Fridley and BKV Group. APPROVED. 7. Claims (ACH PCard 1702; 175845-176030). APPROVED. 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. OPEN FORUM, VISITORS: Councilmember Bolkcom received a text message from residents on Locke Lake Road which said they had called City Hall at 6:33 a.m. to report a water problem in the street. Public Works was sent out and the issue was completely repaired by 2:00 p.m. Residents complimented staff on the amazing service. 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. FRIDLEY CITY COUNCIL MEETING OF MARCH 13, 2017 PAGE 3 NEW BUSINESS: 8.Resolution Approving and Authorizing Execution of Joint Powers Authority Dissolution Agreement and Lease Termination Relating to Fire Training Facility Association John Berg , Fire Chief, stated in 1991, the cities of Fridley, Brooklyn Center, Spring Lake Park, Blaine and Mounds View entered into a Joint Powers Agreement (JPA) to form the Fire Training Association. The Fire Training Association consists of the three fire departments serving those cities and was formed for the purpose of building a fire training facility. Chief Berg noted in 1997, the City of Fridley and the Association entered into a twenty-five- year lease for the property located at 300 - 71st Avenue in Fridley. The Association constructed a training building on the property, along with a garage and a confined space sewer system to be used in training firefighters for the three fire departments. Chief Berg stated the property is now included in the site where the new Fridley Civic Campus is scheduled to be built. The Fire Chiefs representing each of the three fire departments has, under direction of legal counsel, secured tail insurance that will cover any liability for the association until the buildings have been removed and the assets distributed as outlined in the JPA. They are requesting termination of the lease on the property and dissolution of the JPA. This will allow the City of Fridley to take ownership of the property located on the site so the site may be cleared in anticipation of construction of the Civic Campus. Chief Berg said each of the three Fire Chiefs has been in contact with City Administrators in each of the represented cities and there has been general agreement to the conditions of terminating the lease and dissolving the JPA. Councilmember Bolkcom asked if the joint powers agreement is now null and void because of the amendment. Darcy Erickson , City Attorney, replied that Columbia Heights was in the original agreement and withdrew and the amendment to the JPA reflected that. All members are agreeing to dissolve so the dissolution agreement will cause the association to cease to exist. Anything left will vest in Fridley. We are dissolving the association because the new site is being developed. Councilmember Bolkcom noted that there were no assets and asked if there were any liabilities to be divided. Chief Berg said he was not aware of any. Councilmember Barnette asked if there were any plans to relocate the facility. Chief Berg replied that there are no plans to relocate. Training may be offered at other agencies. They looked at relocating this building but it was too costly. FRIDLEY CITY COUNCIL MEETING OF MARCH 13, 2017 PAGE 4 Wally Wysopal , City Manager, noted that with regard to liabilities, that is the purpose of the tail insurance. Chief Berg said that will cover any liabilities as the structure stands. Attorney Erickson added that Chief Berg has consulted with the League of MN Cities to get the appropriate tail insurance coverage needed. Mayor Lund asked if there were any thoughts as to where to have the training. Chief Berg replied that there are plans for the new civic campus to have a tower and this will be a more useful facility. Councilmember Bolkcom asked if there were other facilities to contact if we need something that is not in the new tower. Chief Berg said there were regional facilities. The closest one was in Fridley operated by the City of Minneapolis. MOTION by Councilmember Saefke to adopt Resolution No. 2017-10. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 9.Approve Tower Relocation Agreement. James Kosluchar , Public Works Director, said in conformance with plans for redevelopment of the Columbia Arena property, and in order to facilitate construction of the new Public Works facility, a telecommunications facility owned by AT&T and managed by Crown Castle Holdings will need to be relocated. The City of Fridley currently leases the site within the current Public Works property to AT&T. There is no provision for City-initiated relocation or termination in the existing lease. This lease has 12 years remaining of its 25-year extended term. Mr. Kosluchar said City staff and the City Attorney initiated discussions in 2016 with Crown Castle regarding the tower relocation. As the City project has moved forward, we have advised Crown Castle of the imminent need for relocation. In order for them to move forward with relocation activities, a relocation agreement has been identified as a necessary first step. The City Attorney has been working with Crown Castle’s attorney on a suitable agreement, which has been drafted but is not yet in final form. Mr. Kosluchar said the agreement will include the following provisions:  Crown Castle and the City of Fridley will permit, design, and construct a new tower at the location specified by the City of Fridley. FRIDLEY CITY COUNCIL MEETING OF MARCH 13, 2017 PAGE 5  The City of Fridley will reimburse Crown Castle for their permitting, design, relocation and construction costs, which may include temporary facilities needed to keep the telecommunication facility operable.  The City will provide an area for a new facility similar to the existing leased space.  The City will provide amendments to the lease and zoning as may be needed for relocation of the facility, which is within 500’ of the existing facility. Mr. Kosluchar stated staff recommends the City Council move to approve and authorize the Mayor and City Manager to execute the relocation agreement as presented, subject to further revisions approved by the City Attorney and City Manager, provided the changes do not substantially or materially increase the responsibilities of the City or decrease the rights of the City. Councilmember Bolkcom asked what the cost is to relocate the tower. Mr. Kosluchar replied the Fridley Civic Project includes about $350,000 in relocation costs. Councilmember Bolkcom asked if it could be more than that. Mr. Kosluchar replied it could, but it would be within the remaining revenue on the remaining lease term which would offset the relocation. Councilmember Bolkcom asked how it would be moved and still function. Mr. Kosluchar replied there would be a temporary facility available while the tower is moved. Councilmember Bolkcom asked what would happen if they said they needed new equipment. Mr. Kosluchar replied we do expect there will be a new tower here. To disassemble and reconstruct would be costlier and that also applies to the equipment. Councilmember Bolkcom said in the future we should change the lease agreements to say we would not pay for relocation. Attorney Erickson, City Attorney, said this is a common lease format used when cell towers were new that we see in the Twin Cities and out of state. We are seeing a new format that is changing to have leases be more responsive to new technology. As this lease expires, we will look to include provisions that have move of a balance playing field for the landlords. It may be advantageous to look at language right now. Councilmember Bolkcom asked if the cost was on the City of Fridley because the tower is in the Public Works area and we cannot put any of these costs on the new developer chosen for this site. Scott Hickok , Community Development Director, replied unfortunately, this is on our property and in our way. It does not get affected by the private developer. FRIDLEY CITY COUNCIL MEETING OF MARCH 13, 2017 PAGE 6 Mr. Kosluchar added that it was complex to keep the tower in the current location and there were high costs associated to working around it. MOTION by Councilmember Saefke to approve the Tower Relocation Agreement. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Councilmember Bolkcom asked what it meant by “materially presented.” Attorney Erickson replied that under the lease, we have an obligation to pay for the relocation costs. With respect to the language, we are not putting the City in a position to take on more than they are legally obligated to in terms of additional tasks or work. We will do what we can to protect the rights of the City in the agreement. Staff can provide an update to Council on a periodic basis in terms of what the costs will be as we do not have a firm number tonight. Mr. Kosluchar added the only alternative was to condemn our own property but that would incur relocation costs and private attorney fees to add on to the cost. They are a willing partner, and we will do what is best for both. 10.Motion to Authorize the City Manager to Enter into a Project Labor Agreement with the Minneapolis Trades Council for the Construction of the Fridley Civic Campus Wally Wysopal , City Manager, stated the City Council approved the financing for constructing new buildings for City Hall, Police, Fire and Public Works. The project delivery method includes architectural design by the BKV Group and construction management at risk by McGough Construction if the Council approves McGough’s proposed Guaranteed Maximum Price (“GMP”). If the Council does not accept the GMP, the City and McGough have the option of proceeding with McGough as a construction manager, adviser, if McGough agrees to proceed in that capacity. The open bid process begins in mid-March. City ordinance requires contractors to follow prevailing wage as determined by the State Bureau of Labor. The project will take 18 months to construct. Such a long schedule exposes the project to risks beyond our control that could cause delays and result in cost overruns. The City has set a fixed budget for the project, making it in the City’s best interest to assure the project is completed on time. Mr. Wysopal stated that a Project Labor Agreement (PLA) assures labor peace and guarantees there are no strikes or work stoppages that would delay work and increase costs. It means that all contractors working on the site pay union dues and at least prevailing wages. Since we already have a prevailing wage requirement, there should not be much of an increase in bid prices. And, most contractors who will bid on our project will be of substantial size, increasing the chance they are already union and paying union dues and prevailing wages. A PLA reduces the administrative compliance associated with prevailing wage because wage rates are already confirmed by the Trades Council. Use of PLAs in municipal building construction is mixed. It is common in Minneapolis, St. Paul, Bloomington and Rochester. The City of Golden Valley, which also has a prevailing wage ordinance, is constructing its $30 Million Community Center FRIDLEY CITY COUNCIL MEETING OF MARCH 13, 2017 PAGE 7 using a PLA. Other cities without such ordinances like Shakopee and Lino Lakes have not used PLAs for their recent building construction. Mr. Wysopal said that a PLA would be between the City of Fridley and the Minneapolis Building and Construction Trades Council with McGough assenting to it as well. Notification of the PLA and prevailing wage requirements would become a part of the bid packages. The PLA would exclude items that are exclusively installed buy the supplier such as vehicle lifts, vehicle wash system, audio visual equipment and technology items. The PLA expires upon issuance of a certificate of occupancy or upon written notice of the City. McGough would be responsible for assuring compliance under the construction manager at risk delivery system. Mr. Wysopal stated staff recommends the City Council authorize the City Manager to enter into a PLA with the Minneapolis Building and Construction Trades Council for the construction of the Civic Campus, upon review by the City Attorney. Councilmember Bolkcom asked if it should say City Manager and Mayor on page 115; and on the fourth sentence on page 115 it says installed, should it be by not buy. Mr. Wysopal replied correct. MOTION by Councilmember Barnette to Authorize the City Manager and Mayor to Enter into a Project Labor Agreement with the Minneapolis Trades Council for the Construction of the Fridley Civic Campus. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 11.Informal Status Reports Councilmember Bolkcom announced there is a meeting Thursday, March 16 at Springbrook Nature Center related to the Mississippi River mass wasting (slope movement) at 6:00 p.m. A memo went out to those who live in that area. She also noted that there are questions from people related to the Girl Scout Camp. A letter was sent out, but she has not seen the letter. She asked for an update. Wally Wysopal , City Manager, replied that the City is working with Met Council who purchased the Girl Scout Camp. The City asked them to contact nearby property owners to let them know about this and facilitate any questions. This has not yet taken place. Staff will work with them to make sure notice gets out. The Met Council needs to acquire a portion of the property to expand pumping under the Mississippi River. The plan is to purchase the entire camp and the Girl Scouts will have a three-year lease for the property. Met Council will work on the pump project in the 3-year timeframe. The City does not own the camp, but can review it as it impacts the comprehensive plan. Staff will make sure Met Council is in contact with people. Councilmember Bolkcom replied part of the concern is that the forest will not be there anymore and it will look different. People need to be kept informed on what is going on. FRIDLEY CITY COUNCIL MEETING OF MARCH 13, 2017 PAGE 8 Councilmember Bolkcom said that there was a Taste of Fridley fundraiser for Fridley Middle School kids to go to the East Coast. There were about 250 participants, and the event made around $6,000 gross. This was a great event. It was fun to see people from different ages support a great program for kids. Kudos to all those who were involved. ADJOURN: MOTION by Councilmember Barnette to adjourn. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED AND THE MEETING ADJOURNED AT 7:40 P.M. Respectfully Submitted, Krista Peterson Scott J. Lund Recording Secretary Mayor