Loading...
CCM 05/22/2017 CITY COUNCIL MEETING CITY OF FRIDLEY MAY 22, 2017 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 Varichak Councilmember Saefke Councilmember Bolkcom OTHERS PRESENT: Wally Wysopal, City Manager Darcy Erickson, City Attorney Scott Hickok, Community Development Director James Kosluchar, Public Works Director Shelly Peterson, Finance Director Deb Skogen, City Clerk Malcolm Mitchell, Springbrook Nature Center Foundation Bert Martinez, 7786 Beech Street Brad Dunham, Round Lake Commons II, LLC Mary Tjosvold, Crooners DuWayne Jones, BKV Group Andy Rasmussen, McGough Construction PRESENTATION: John Connelly, Twin Cities North Chamber of Commerce. Malcolm Mitchell, Springbrook Nature Center Foundation - Appreciation of Mayor Lund. APPROVAL OF PROPOSED CONSENT AGENDA:APPROVAL OF MINUTES: Board of Appeal and Equalization Meeting of May 8, 2017 APPROVED City Council Meeting of May 8, 2017 APPROVED. FRIDLEY CITY COUNCIL MEETING OF MAY 22, 2017 PAGE 2 NEW BUSINESS: 1. Receive the Minutes from the Planning Commission Meeting of May 17, 2017. RECEIVED. 2. Resolution Scheduling a Public Hearing on a Proposed Amendment to Fridley City Charter, Chapter 7, Taxation and Finances; and Directing Publication of the Text of the Ordinance in Full. ADOPTED RESOLUTION NO. 2017-17. 3. Approve School Resource Officer Program Agreement between the City of Fridley and Independent School District #14. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 4. Approve School Resource Officer Program Agreement between the City of Fridley and Northeast Metro 916 Intermediate School District. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 5. Claims (176641 - 176784). Councilmember Bolkcom asked if the City is reimbursed for the Arrive Alive t-shirts. Wally Wysopal , City Manager, said he would check. APPROVED. ADOPTION OF PROPOSED CONSENT AGENDA: Councilmember Bolkcom requested Item Nos. 3 and 4 be removed and placed on the regular agenda. Councilmember Bolkcom stated in the memo for Item 2 in the second paragraph, September 15 should be May 15. MOTION by Councilmember Barnette to adopt the proposed consent agenda with the removal of Item Nos. 3 and 4. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF MAY 22, 2017 PAGE 3 OPEN FORUM, VISITORS: Bert Martinez, 7786 Beech Street, stated 2.5 inches of rain flowed into their businesses again. He decided he would represent the businesses as he can talk more peacefully than some of his neighbors. Basically the question they have is what happened in the storm sewer that provoked this episode with only 2.5 inches of rain? Mr. Martinez stated this time the street was even higher than the episode last September. They had water waist high. The funny part about this is they had that rain about 5 p.m. At 6:30 p.m. they had rain very similar, and the street was not flooded. The difference was the time period in between the beginning and the end of the rain. Mr. Martinez said he wrote a letter to Mr. Kosluchar after the event saying it was his understanding that some plans for this project were going to be submitted in the first quarter. He has not been informed about the plans. Mr. Martinez stated he represents his neighbors. He was asking for some type of mitigation to prevent rains from destroying their businesses. Removing just a couple of 2 x 6’s will increase the area in which the flow can go, not hold so much water, and get that water out of there faster. Mr. Martinez said he received a memo from Brandon stating he has discussed Mr. Martinez’s letter with Mr. Kosluchar and said they were going to be doing some interim mitigation to modify the culvert inlet on the east side of East River Road. He said he did not know how or when that would happen. Mr. Martinez said he is here asking them to really do something. Mr. Martinez stated he visited with one of his neighbors who was a little upset after the rain. He was with two other guys cleaning his shop. He had not been able to do anything from the night before or all day long. He is sure his neighbor had work to do in preparing his machinery for work on Monday, too. Those economical losses for the small business are tremendous. Mr. Martinez stated he wanted Council to be aware of what is happening. He knows they are trying their best. Basically, the way they see their problem is the City, the County--whoever they are—have created a holding pond, and they are that holding pond at the cost of their businesses. Their foundations are beginning to crumble. He can show in his foundation three or four spots in which he has holes going into the floor. He can show them one part of the foundation that had a crack about four feet high that he had to immediately fix. All those things are affecting their buildings. When they expect retirement and have that happen to their business, it is very hard to take. Mayor Lund asked Mr. Kosluchar to give them an update on what has happened since last fall. Obviously, no project is imminent. James Kosluchar , Public Works Director, replied they have met with the Coon Creek Watershed District and the Anoka County Highway Department who are amenable to the plan. FRIDLEY CITY COUNCIL MEETING OF MAY 22, 2017 PAGE 4 They do not have resources this year, so the City would have to carry the project if they were to go ahead this year. His guess is it could go as quickly as this fall. Right now they are looking at two different routes for the relieving pipe--either on the current alignment behind the yards in Stonybrook (downstream of East River Road), or they are looking at Craigbrook Way and routing the pipe there. The Craigbrook option is more expensive, but it provides them with the ability to do more. Mr. Kosluchar stated they are not going to be able to deal with every storm but they are looking at the increments and the performance and whether it pays for them to go the more expensive route. Brandon Brodhag is spearheading their group; and WSB is their consultant. As soon as they make a decision on the alignment, they are ready to go to design drawings. They already have a concept drawn up. Mayor Lund stated the engineering has taken place and it shows it is a lot more complex than what he heard from Mr. Martinez about removing a couple of 2 x 6’s or a weir to lower that which would only probably help minimally for a very short period of time and would negatively impact downstream. He asked if that was a fair statement. Mr. Kosluchar replied that is true. That is their concern. If they modify things, they pass the problem downstream. If there is a way, he will rework this with his staff. They can do something that can be modified on the fly; but they have concern for the safety of the employees in any kind of situation. If there is some way to automate the gating process where they can maximize it during these kinds of events, they can try. The one modification Mr. Martinez was talking about is there are inlet grates on the East River Road culvert. If they take out some of those tines they might get some relief, but they are talking about a pretty modest improvement--a few inches maybe. It might make the difference in a particular storm. He does not think it would have last Wednesday though. Mr. Martinez stated when they are talking about the 50 or 100-year events, they have seen two in six months. Mr. Kosluchar replied, and he appreciates that. They do have an adjacent subwatershed, the Oak Glen Creek Subwatershed that had similar problems last September. That watershed with the particular business was subject to these same kind of flooding issues. He was quite honestly surprised about the other business. The volume of water was not that great but it was a fairly intense storm, and they had saturated conditions up ahead. Mayor Lund stated the saturation beforehand caused this. Last fall there was an 8-inch deluge and this was 2.5 to 4 inches. Rice Creek was just as high, and he thinks the saturation earlier in the year was a factor. Admittedly Mr. Martinez and his neighbors have a problem there. They are working on a solution. Even the solutions Mr. Kosluchar is talking about are not an absolute guarantee because they do not know whether, for example, the next one is a 12-inch deluge. Unfortunately, they seem to be happening more frequently. Councilmember Bolkcom stated the Coon Creek Watershed District and the Anoka County Highway Department have said they do not have the money this year. If there was an FRIDLEY CITY COUNCIL MEETING OF MAY 22, 2017 PAGE 5 opportunity to actually develop a plan and get it set up, there is no guarantee the money would be there. Do they have any kind of agreement? One of the big things is to at least get working on a plan. Councilmember Bolkcom asked if they take out some of the grates, would water blow through there and cause problems on the other side of East River Road, which has happened in the past. Councilmember Bolkcom asked if they could predict a little more ahead of time, could they take the grates out then to as least give some relief. She asked if they could put a pump there to at least keep the water out of the businesses. Mr. Kosluchar replied those are a number of good considerations. When they are modifying something, they want to make sure the City employees are safe. They want to make sure they are not disbursing a problem in another way. They can do some modifications to the inlet. They would be minor. With the horizon the City has on doing more of a permanent improvement, there is not that much risk; but any other options need to be evaluated. As far as the financial part goes, he would expect this would become a joint powers agreement with Anoka County. Presumably it depends on storm water funding, etc. If there are funds available to advance a project, that is where they would want to go. Councilmember Bolkcom asked if they could qualify for any federal or state funds. Mr. Kosluchar replied, they could, but the timing would be out another six months to a year. Mayor Lund stated they will not get a resolution tonight but staff is working on it. Mr. Martinez stated they have a six-foot sewer that has been reduced to a three. That is the problem. That is the way they see that. Mayor Lund asked Mr. Kosluchar about the pumps Councilmember Bolkcom mentioned. He asked if pumping could occur as a temporary fix. Pumping is always after the fact, but it helps get it water down quicker. Mr. Kosluchar replied crossing East River Road would be the closest way out of the area so obviously crossing it would create traffic closure. Second, if you try to utilize the existing storm sewer pipe, you eliminate some capacity. The other way to go would be the railroad to Springbrook and that is a long haul. They can look at it. He will talk with his staff and see if that is an option. ADOPTION OF AGENDA: MOTION by Councilmember Bolkcom to approve the agenda with the additions of Item Nos. 3 and 4. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF MAY 22, 2017 PAGE 6 PUBLIC HEARING: 6. Consideration of a Vacation Request, SAV #17-02, by the City of Fridley, to Vacate a Roadway Easement, Two Sanitary Sewer Easements, an Ingress-Egress Easement, and a Watermain Easement for the New Civic Campus and New Private Development, Generally Located at 7011 University Ave N.E. (Ward 1). MOTION by Councilmember Barnette waive the reading of the public hear 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 WAS OPENED AT 7:32 P.M. Scott Hickok, Community Development Director, said redeveloping the former Columbia Arena property to allow for the construction of the new civic campus not only requires that the property be replatted, it also requires that any existing easements on the lot be vacated. The easements that need to be vacated prior to approval of the final plat are a public roadway easement, two sanitary sewer easements, an ingress-egress easement, and a watermain easement. Mr. Hickok presented a map of the property and outlined the different easements. He said staff recommended conducting the public hearing and approving the resolution under Item 7. MOTION by Councilmember Bolkcom to close the public hearing. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING WAS CLOSED AT 7:36 P.M. NEW BUSINESS: 7. Resolution to Vacate a Public Road Easement, Two Sanitary Sewer Easements, an Ingress-Egress Easement, and a Watermain Easement for the Property Generally Located at 7011 University Avenue, Petitioned by the City of Fridley (Vacation Request, SAV #17-02) (Ward 1) . MOTION by Councilmember Saefke to adopt Resolution No. 2017-18. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF MAY 22, 2017 PAGE 7 8. First Reading of an Ordinance to Amend the City Code of the City of Fridley, Minnesota, by Making a Change in Zoning Districts (Rezoning Request, ZOA #17-01, by Brad Dunham with Round Lake Commons II for 7699 Highway 65 N.E.) (Ward 2). Scott Hickok , Community Development Director, said the rezoning will allow for the redevelopment of this site and a new express car wash. A C-2, General Business Zoning District, requires that a motor vehicle wash establishment obtain a special use permit. The petitioner is also requesting that application which will be heard by City Council at their June 12, 2017, meeting. At that same time, a second reading of the rezoning ordinance will be held. Mr. Hickok stated the current zoning of C-3, General Shopping, imposes several requirements that make it difficult to redevelop this site. The property is also a turn-back parcel within the City and has roadway on all sides of it. Mr. Hickok stated over the course of the last several years staff has been working with property owners in these turn-back parcels, and there are several throughout the major corridors. Staff has helped them rezone those to C-2, General Business. Samples of those rezoning include st SuperAmerica, Trav’s Outfitters, and the old Citgo site at University and 61 Avenue. Mr. Hickok stated rezoning this property would be consistent with those along Highway 65 and University Avenue. At their meeting on May 19, 2017, the Planning Commission held a public hearing for this item and had a lengthy discussion related to entering and exiting this site. The Commission felt the access off Osborne Road should either be eliminated or be an entrance only. Mr. Dunham, the developer, was agreeable to the entrance-only concept and, as a result, the Commission added a stipulation to the special use permit requesting the access off Osborne Road shall be an entrance only. Council will be seeing that on June 12. Mr. Hickok presented a map of the site which is in the southeast quadrant of Osborne and Highway 65. There are three rows for queuing on the nice weather days. In the center are the parking stalls and the highlighted dark lines in between are the vacuum cleaners. This is a self- vacuum operation and then you drive through the wash. Mr. Hickok stated the Planning Commission recommended approval of this rezoning and the special use permit with an added stipulation regarding that entrance, and the motion carried unanimously. Staff recommends concurrence with the Planning Commission and that Council hold a public hearing for the rezoning request. Council Bolkcom asked about the 60-days. She did not realize they were up against that and did not realize a letter had been sent. Mr. Hickok replied it is not unusual, especially when you have a couple of items running simultaneously. In this particular case, the developer has been very good about working and reworking the drawings as to the entrances and exits, which did cause some added time. The City is certainly within the State guidelines for getting it done and through the process, and there would be no conflict with the 60-day action item. FRIDLEY CITY COUNCIL MEETING OF MAY 22, 2017 PAGE 8 Councilmember Bolkcom said because the letter had been sent out, there are no issues related to the 60-days. Mr. Hickok replied, no. MOTION by Councilmember Varichak to waive the reading of the ordinance and adopt the ordinance on first reading. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Brad Dunham , Round Lake Commons II, LLC, stated he has talked with Mr. Hickok about something and he was directed to the Council to ask about a walking path that really does not seem to go anywhere. What Mr. Hickok understood is maybe that path was put there when this was all one parcel. It starts at the Osborne intersection at the stoplights and then comes right out onto Viron. He wonders if that needs to be there. He is not sure if he wants it there. Mr. Hickok stated it does run right in front of the sign along the front of the property as it currently exists. It runs parallel with Highway 65 and then comes out right at the curve of Viron Road. It does not pick up on the other side. There is no stripe to tell you if you are a pedestrian or bicyclist where to go from there. It should either be striped so it gives motorists an idea that somebody might be coming across or, as being suggested, not included in the final landscape plan. Take it out and plant instead. As he discussed with Mr. Dunham it probably would not be a bad idea to bring it up and have this discussion on the record. Staff would certainly be glad to follow up and take a look. Mayor Lund asked if this walkway is from the semaphore heading on the south side of Osborne. Mr. Dunham replied, right towards Wendy’s. It stops right there and does not go anywhere. That corner might be busy to begin with. Mr. Hickok stated he suspects what happened here is that when that parcel became a turn back parcel, maybe that sidewalk had a better explanation before and was running parallel with frontage road then that would run along and parallel with Highway 65. When the road turned it left the sidewalk, and he is sure the concrete was done and fitted so it would meet the corner. A decision should be made on that, and staff can look at it. Mayor Lund suggested having staff look at it and Mr. Dunham can make a determination. 9. First Reading of an Ordinance Amending the Fridley City Code, Chapters 602. 3.2% Malt Liquor, Section 602.14 Patio Endorsement; 603. Intoxicating Liquor, Section 603.26 Patio Endorsement; and 606. Intoxicating Liquor On-Sale Clubs, Section 606.12 Patio Endorsement, to Allow for Live Entertainment on Patios at Liquor Establishments with Patio Endorsements. FRIDLEY CITY COUNCIL MEETING OF MAY 22, 2017 PAGE 9 Deb Skogen, City Clerk, stated a request was made to the City to review the City Code to allow acoustical entertainment outside at an on-sale liquor establishment with a patio endorsement. The Design Review Committee (DRC) met in April to discuss the feasibility of outdoor entertainment. The DRC reviewed City Code Chapter 124 which is the noise ordinance for guidance. Ms. Skogen stated the DRC felt the noise would be similar to that of construction and used that as a guide to determine the hours for the outdoor entertainment. Live entertainment would be allowed between the hours of 9 a.m. and 10 p.m. There was no differentiation made between acoustical or live music with amps and speakers. They felt if the noise complaints were received, the Police Department would come out and assess the situation to determine whether the noise was loud enough to create a disturbance of the peace. If they were found to be violating or disturbing the peace, the establishment would be asked to stop the live outdoor entertainment. Councilmember Saefke asked Ms. Skogen to explain the difference between acoustical entertainment and other entertainment. Ms. Skogen replied acoustical music would be like a regular guitar without an amp and playing with just a microphone and are singing. Councilmember Barnette asked Ms. Skogen if it is true patio’s access can only be through the building and not from the outside? Ms. Skogen replied that is true. Anybody sitting on the patio would have to enter from the inside of the building. Councilmember Bolkcom stated in no way does this allow someone who does not have a patio endorsement to now put up a tent in the parking lot and have music. Ms. Skogen replied correct. Their liquor license comes with liquor liability insurance that covers the inside of their building where liquor is served as well as their patio. Parking lots are not part of the establishment and are not covered under liquor liability insurance. Councilmember Bolkcom asked, and it does not in any way change what constitutes a patio so you cannot suddenly think now you have a patio because it is out on a sidewalk in front of an establishment? Ms. Skogen replied correct. They would have to apply with the City for a patio endorsement if they do not have one. There are strict Code requirements including big bollards and locks on the gates because you are serving alcohol. Ms. Skogen stated staff recommends the first reading. FRIDLEY CITY COUNCIL MEETING OF MAY 22, 2017 PAGE 10 Mayor Lund asked Mary Tjosvold to come up and speak. She made a comment a few months ago and rather than making her complete an application and paying a fee, they looked at this now for all liquor establishments that may or will have a patio in the future. If it gets too loud and the police are called because they are disturbing the peace, they are going to ask that you shut it down. Mary Tjosvold , Crooners, stated they do happy hour music from 5 p.m. to 7 p.m. Last year, they also made application for a patio. They had to go to the Met Council, and had to pay SAC fees. They do have gates and a safety lock so no one from the outside can come in. They overlook Moore Lake. They decided to pursue the idea from 5 p.m. to 7 p.m. in the evening and have the music outside instead of inside. It tends to be quieter music for happy hour. They have it set up right by the fence in the corner so the music would go into the building, although they would be in concert with the traffic from Highway 65. Mayor Lund stated hopefully it will be an added plus to Ms. Tjosvold’ s business. The City wants to see businesses survive and thrive. MOTION by Councilmember Saefke to waive the reading of the ordinance and adopt the ordinance on first reading. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 10. Preliminary Plat Request, PS#17-02, by the City of Fridley, to Replat the Properties at 400 – 71st Avenue, 6911 University Avenue, and 7011 University Avenue to Facilitate the New Civic Campus and Private Development. Scott Hickok , Community Development Director,stated as they know, the thing that keeps a final plat from being approved typically is the amount of time that the County takes on double checking everything with the final plat after a preliminary plat is approved. If a surveyor and his client are so inclined to create the mylars and have the County do that work ahead of time, they could actually have their preliminary plat and final plat approved. One risk is that if Council looked at the preliminary plat and saw something they wanted changed, the final plat could not move forward. However, if it is okay with the Council he would like to do a preliminary/final plat representation together. Mr. Hickok stated the next step in redevelopment of the former Columbia Arena site is to replat the entire site to create lots and legal descriptions needed to facilitate the construction of a new civic campus development and private development. Mr. Hickok stated Locke Park Pointe plat will create new lots for the new city campus - the city hall, police, fire, public works, the storm water amenity, proposed parkway, and areas for private development. The plans are further developed for the private portion of the site, and a rezoning to S-2, Redevelopment District, will need to occur and additional platting may be required in the future. FRIDLEY CITY COUNCIL MEETING OF MAY 22, 2017 PAGE 11 Mr. Hickok stated it is being platted in this way and highlighted on the screen for them the portion the City will be developing. The storm water is part of the development but is really its own lot, and the white areas (Outlot A, Outlot C, Outlot E, and Outlot F) are parts of the plat and are also there for future development. On part of this plat they do correct the roadway issue. They vacated a portion of the roadway as part of this plat. They also included the corrected version of the roadway. Mr. Hickok stated Carlson McCain, an engineering and surveying firm the City hired to facilitate the platting process, submitted the preplat early to the Anoka County surveyor’s office for review; and they received their approval last week. As a result, the final plat for Locke Park Pointe is also ready for Council’s consideration. Mr. Hickok stated the Planning Commission held its public hearing for the preliminary plat on May 17, 2017, and unanimously recommended approval. Staff recommends concurrence with the Planning Commission and approval for the Preliminary Plat, PS #17-02. Staff also recommends approval of the Final Plat, PS #17-02. Mayor Lund asked about the rectangle to the right of Outlot F. Mr. Hickok said a portion of it has been used in exchange for the roadway that was necessary from Locke Park. A big portion of that will be preserved as part of Locke Park so they did not lose any square feet by using some for the parkway. Mayor Lund stated so that will be undeveloped just immediately right of Outlot F. Mr. Hickok stated with an exception just to the right of the parkway itself possibly for development or a pond. Other than that the park stays in its natural state. Councilmember Saefke asked, is that part wooded or part of the soccer field today? Mr. Hickok replied the portion they were just talking about is wooded. It is the tip of the forest that comes through there, and the creek kind of meanders just a little bit to the east of that. Councilmember Bolkcom said there were no changes from the preliminary to the final plat. Mr. Hickok replied, correct. MOTION by Councilmember Saefke to approve Preliminary Plat Request, PS#17-02, by the City of Fridley. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF MAY 22, 2017 PAGE 12 11. Resolution Approving Final Plat, P.S. #17-02, for Locke Park Pointe, by the City of Fridley, to Create Lots and Legal Descriptions to Facilitate the Construction of the New Civic Campus Development, Generally Located at 400 – 71st Avenue, 6911 University Avenue, and 7011 University Avenue N.E. (Ward 1). MOTION by Councilmember Saefke to adopt Resolution 2017-19. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 12. Receive Bids for the Fridley Civic Campus Project 505; Adopt Resolution Awarding Base Bid Labor and Miscellaneous Taxable Materials Bid Packages for the City of Fridley Civic Campus Project 505 Received on May 22, 2017; and Adopt Resolution Awarding Base Bid Tax-Exempt Materials Bid Packages for the City of Fridley Civic Campus Project 505 Received on May 22, 2017 (Ward 1). Mr. Kosluchar stated the City’s team of architects, engineers, and the construction manager finalized bid documents for the Fridley Civic Campus Project in April of this year. Mr. Kosluchar stated on the afternoon of May 4 the bids were publicly opened for 31 different bid packages that make up the project. Seventy-three bids were submitted. Unfortunately, a few did not qualify. Mr. Kosluchar stated the City and its team of architects, engineers, and construction manager spent some time since the bid opening evaluating the bids. Mr. Kosluchar stated contractors from the first group of bid packages, namely 1 through 18, were selected on lowest qualifying bid basis so there were qualifications they had to meet. They selected based on the lowest price for qualifying bidders. Unfortunately, they had a few bidders who were unresponsive, did not submit all the paperwork, etc., so they were not included in their tabulation. Mr. Kosluchar stated Table 2 includes contractors from the second group of bid packages, 19 through 31. These contractors were selected based on a number of submittals they provided that illustrated their price for the project, their experience, their project plan, method, and an in- person interview to review those submittals with the contractor. Mr. Kosluchar stated both these 1 and 2 are for the labor and taxable items. They also separated the bids with tax exempt materials. Here are those same bid packages, 1 through 18, for the lowest qualifying bidder for tax exempt materials. These were bid separately to allow the purchasing agent process to reduce the cost of sales tax for the project. They believe they will be saving over $1 million by going through that process. Again, he has the fourth list which FRIDLEY CITY COUNCIL MEETING OF MAY 22, 2017 PAGE 13 includes the tax exempt materials packages for best value qualifying bidder packages, 19 through 21. Mr. Kosluchar stated they appreciate all the time that went into the contractors’ submittals. The best value process took a little bit more time. Mr. Kosluchar stated the construction budget overall is a round number. That excludes the soft costs and construction manager-at-risk costs for general conditions, expenses, overhead, and contingency. The final construction manager’s estimate was just over $38.3 million. The good news is the total of the recommended bids in their packets is $35,567,000. They do have three bid packages that are not recommended at this time. They did not receive bids on two of them. The City did not receive a qualifying bid on one of them. Two of them are being rebid and are out for bid currently, and the third one will be out for bid shortly. Those are estimated to total about $1.3 million. Even with adding those back in, they still have some room in the budget. Mr. Kosluchar stated he would recommend they do not award other than the base bid tonight, and they evaluate the alternate bids further going forward. That is another step they just simply did not have time to go through to get this to the Council, get it approved, and maintain the schedule. Mr. Kosluchar handed out an updated resolution with some minor changes. There is a blue marked-up version and a clean version. The first piece of the action he is requesting is to move to receive the bids for the Fridley City Campus Project No. 505. The second is to adopt the resolution awarding contracts for base bid labor and miscellaneous taxable materials bid packages for the same project. He revised the resolution to include the language per the City Attorney’s recommendation. Finally, staff is asking council to adopt the resolution awarding contracts for the base bid tax exempt materials packages for the City of Fridley Civic Campus No. 505. Mr. Kosluchar stated if approved staff, will notify contractors of their respective awards, obtain bonds and insurance from the contractors, and prepare contracts for signature. They will have close to 60 contracts to prepare if Council approves all of these items tonight. Councilmember Bolkcom asked Mr. Kosluchar to go over the changes. Mr. Kosluchar stated the first revision is in the title, Awarding Contracts for Base Bid Labor and Miscellaneous Taxable Materials. The words, “Contracts for” were left out. On Item 1 the action item for Council, the sentence now reads, “That the City Council hereby awards a contract to each respective contractor for labor and miscellaneous and taxable materials tabulated in the attached award recommendation summary subject to posting of acceptable performance, payment, bond, and certificate of insurance.” Mayor Lund asked if the copy in the agenda should be replaced with this one. Mr. Kosluchar replied correct. Also, on the second resolution, it inserts the language, “Contracts for” similar to the first resolution. FRIDLEY CITY COUNCIL MEETING OF MAY 22, 2017 PAGE 14 Councilmember Bolkcom stated as to the two resolutions, second to the last paragraph, it says “City Manage” instead of “City Manager”. She asked if they should move them all into the record or do each one separately. Darcy Erickson, City Attorney, replied they should move these revised resolutions into the record; and when moving the resolution ensure they are calling out they are adopting the revised resolution. She would note page 118 does not appear to have been changed at all. She asked Mr. Kosluchar if that was correct. Mr. Kosluchar replied, yes. The tables on the back of each resolution are the same. Mayor Lund asked out of all the bids, how many are they being asked to accept that exceeded the estimated cost? Mr. Kosluchar replied, he does not have a count. On the top of his head, he believed there were 5 or 6 out of the 28 they will be awarding. Mayor Lund stated he marked up four of them and he did not quite get through them all; however, overall it came in under budget. Mr. Kosluchar stated he knows at least two of those bid packages were due to shifts in the contract documents that came late that shifted from one bid package to another. In other words the work was moved from one to another. One of them would be low then and one of them high naturally. Mayor Lund stated his only point in doing this is that the ones that came in above estimate why would they not just say those are too high, throw those out, and have those rebid as well? Mr. Kosluchar replied that is certainly Council’s option. When staff tabulated the prices, they immediately reviewed with the architect and construction manager the summary of those prices against the estimate and felt that they were warranted. There was one bid that was non- responsive that was fairly high above the estimate percentage wise, and they could not accept the bid at any rate. That would be a rebid item. Mayor Lund stated he did not give it the scrutiny staff did, but in picking one out, on page 90 that was tiling, there was only one bid. The total base bid is $541,400; and the estimate for that was under $400,000. It is a considerable difference. Mr. Hickok replied one thing to consider though in the best value portion of the process, price was scored as one of the elements considered and there were other elements considered as part of that selection process. There were other factors involved including interviews and their safety ratings that might have caused them to select them. Mayor Lund asked does this tell him which ones were best value requiring interviews, because not all of those were required interviews. FRIDLEY CITY COUNCIL MEETING OF MAY 22, 2017 PAGE 15 Mr. Kosluchar replied, bid packages 19 through 31 were the best value packages. It would not have been the tiling–that would have been a low responsive bidder. He does not remember specifically on the tiling why the bid exceeded the estimate. Mr. Jones is here from BKV architects and Mr. Rasmussen from McGough, and they may recall. He knows they had the conversation about the tiling and decided to accept it. Mr. Hickok stated on the tiling there was only one responsive bid that had the stone for the stone stairways. Andy Rasmussen , McGough Construction, said there was stone added onto the stair that was not there for the tile bid. Like all estimates, there are some that are up and some that are down. They were quite comfortable as a team when they reviewed them and made the best choices out of the selection. There are other factors that play in such as timing. You want to get a project going. Rebidding, etc., takes time. When they looked it over they were comfortable with where the bids came in. Councilmember Bolkcom asked with respect to contingencies, what percentage do they add on to the $38 million or has everything been taken care of. Mr. Kosluchar replied, this would be the next item that is on the agenda. There is a contingency included in that item. Councilmember Bolkcom asked what the total added on could be. Mr. Kosluchar replied as to the total contingency there is $1.4 million or something of that nature. Councilmember Bolkcom asked when the bid that has not gone out will take place. Mr. Kosluchar replied, they have not set a schedule for that yet, but it should be done fairly soon. This is later work in the construction sequence--the milling work. MOTION by Councilmember Saefke to receive the bids for the Fridley Civic Campus Project 505. Seconded by Councilmember Varichak. Mayor Lund stated he would be comfortable if there had been multiple bids. One or two of them that came in over the estimate really stand out. He understands they are on a timeline. He does not understand why engineering and others would be so far off from the estimate for the tiling. Mr. Rasmussen stated one thing he will understand as to all the bidders, they are bidding in the spirit of a competitive bid. They do not know they are the only one who bidding. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF MAY 22, 2017 PAGE 16 MOTION by Councilmember Saefke to receive the revised resolutions to replace in their agenda packets. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION by Councilmember Saefke to adopt Resolution No. 2017-20.Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION by Councilmember Saefke to adopt Resolution No. 2017-21. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 13. Resolution Accepting the Guaranteed Maximum Price (GMP) from McGough Construction Company, Fridley’s Construction Manager-at-Risk for the City of Fridley’s Civic Campus Project which Includes: City Hall, Police, Fire and the Public Works Building. Scott Hickok, Community Development Director,said early in this process of planning and designing the Civic Campus, the City selected to use a construction manager at-risk system as the delivery system for the project. The difference between a construction manager-at-risk and construction manager agency really comes down to the GMP which is the guaranteed maximum price. It is a number determined by the construction manager-at-risk and is a number they will not exceed in completion of their project. Mr. Hickok stated the City’s purpose of wanting a construction manager-at-risk is just that--to protect the City, do not go over budget, and bring the project in on time. On the agenda, Council will note that the GMP was prepared in resolution form for Council’s review and possible acceptance. The packet version of the number of this draft was a bit different. It was $43,162,131. The final version before them this evening is lower which is $43,115,442. Mr. Hickok stated break out sheets were also attached in Council’s packet to show how the number was derived. One change has been identified as necessary since the acceptance of the McGough RFP for this project. That is a change to 3 percent staff fee rather than the 2.4 percent staff fee. That change was mutually determined as appropriate due to the uniqueness of their CM at Risk for this project. They are unique in that this is a municipal. They were pioneering in a way because CM at Risk has been used by the State of Minnesota, the University of Minnesota, but not by municipalities. They really did not have a pattern book to go by; and through the course of the rest of the project, there will be added protections they have built in and added staff time as a result, making that .6 percent necessary. FRIDLEY CITY COUNCIL MEETING OF MAY 22, 2017 PAGE 17 Mr. Hickok stated public bid was important to the project to receive the benefit of tax exemption on purchases. However, contracts would then be conveyed to McGough for their administration of the contracts. That .6 percent increase does not increase the proposed GMP and has been included in that bottom line. Accepting the GMP accepts that increase of .6 percent. Mr. Hickok stated staff recommends accepting into the record the approval of the GMP resolution including the additional .6 percent for McGough’s staff fees. At the first City Council meeting in June the original McGough RFP document will be modified to match that 3 percent staff fee as approved in the GMP. Councilmember Barnette stated on the revised memorandum he gave them, the change is from $43,162,131 to $43,115,442. However, on the back page, where it says “Staff Recommendations,” it still states $43,162,131. He asked if that should be the new figure? Mr. Hickok replied, yes. MOTION by Councilmember Saefke to receive the revised materials from Mr. Hickok, including the dollar amount being edited under “Staff’s Recommendation” to $43,115,442. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION by Councilmember Saefke to adopt Resolution No. 2017-22. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 14. Resolution Allowing the Assignment to McGough Construction Company, LLC, as Prime Contractor, and Reassignment of Contracts between the City of Fridley and Specific Individual Contractors to McGough as the City of Fridley’s Construction Manager-at-Risk for the City of Fridley’s Civic Campus Project which Includes: City Hall, Police, Fire and Public Works Buildings. Scott Hickok, Community Development Director,stated assignment is a legal term. In order for the City to take advantage of tax exempt purchasing, it needed to control the bid process. With McGough Construction Company, LLC as CMR the contracts would then be assigned to McGough for administration. Assignment to McGough is necessary as they are the CMR, and to guarantee price they need to control the contracts. As the revised resolution points out, staff would recommend accepting into the record the revised resolution as recommended by Attorney Strommen. Once accepted into the record, staff recommends approval of the resolution. Councilmember Bolkcom said on Page 2 of the resolution, in the third paragraph from the bottom, it states “latter” but it should be “letter”. Also, there are words “re-assignment” that should be changed to “assignment”. FRIDLEY CITY COUNCIL MEETING OF MAY 22, 2017 PAGE 18 MOTION by Councilmember Saefke to adopt Resolution No. 2017-23. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 3. Approve School Resource Officer Program Agreement between the City of Fridley and Independent School District #14. Councilmember Bolkcom stated comparing one to the other, on the ISD #14, on page 23, “Either party may cancel this Agreement within a 30 day written notice.” She asked why the one related to the Northeast Metro 916 requires six months’ notice. She asked why one was so much longer than the other. Mr. Wysopal stated the termination dates were a product of two different negotiation sessions and differences in the delivery methods of the two schools. The District #14 agreement has been a long-standing agreement that has been updated every couple of years, and the Northeast Metro Intermediate School District was a surprise to the City that it was located here. During former Public Safety Director Don Abbott’s last year, they began negotiations of that agreement. The City actually wanted the longer period of time because of the intensive nature of what they do, and its location issue. At that time it was the Police Chief’s feeling it was to the betterment of the City to have the longer period, and that is what they went with. Councilmember Bolkcom asked, and what is the difference in price, too? The cost of one vs. the other. Is it more intense at one? Mr. Wysopal replied, it is a little more intense. They are providing two officers at the School District, and the price there is really for paying for one with the City paying for the other. The connection is these are most likely the City’s residents they are serving. The Northeast Intermediate School District has primarily residents coming from Columbia Heights and other cities. Therefore, the City is adding that cost factor in and charging them a little bit more for that reason. Councilmember Bolkcom asked if the City would change the School District 14 agreement to a six-month notice. Mr. Wysopal replied they would have no reason to unless that is something Council would like staff to take into consideration. MOTION by Councilmember Bolkcom to approve the School Resource Officer Program Agreement between the City of Fridley and Independent School District #14. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF MAY 22, 2017 PAGE 19 4. Approve School Resource Officer Program Agreement between the City of Fridley and Northeast Metro 916 Intermediate School District. MOTION by Councilmember Bolkcom to approve the School Resource Officer Program Agreement between the City of Fridley and Northeast Metro 916 Intermediate School District. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 15. Informal Status Report: None. 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 9:13 P.M. Respectfully submitted by, Denise M. Johnson Scott J. Lund Recording Secretary Mayor