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CCM 07/24/2017 CITY COUNCIL MEETING CITY OF FRIDLEY JULY 24, 2017 The City Council meeting for the City of Fridley was called to order by Mayor Lund at 7:05 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 Deborah Dahl, Director of Human Resources PROCLAMATION: Night to Unite – August 1, 2017. APPROVAL OF PROPOSED CONSENT AGENDA: APPROVAL OF MINUTES: City Council Meeting of July 10, 2017. APPROVED. OLD BUSINESS: 1. Second Reading of an Ordinance Amending Fridley City Code, Section 102.01, Disposal of Lost and Stolen Property, to Allow for the Private Sale of Unclaimed Property to a Non-Profit Organization with a Significant Mission of Community Services; and Resolution Approving Private Sale of Bicycles that have been Declared as Unclaimed Property to a Local Non-Profit Community Organization for the Calendar Year 2017. FRIDLEY CITY COUNCIL MEETING OF JULY 24, 2017 PAGE 2 WAIVED THE READING OF THE ORDINANCE AND ADOPTED ORDINANCE NO. 1346 ON SECOND READING AND ORDERED PUBLICATION. ADOPTED RESOLUTION NO. 2017-36. NEW BUSINESS: 2. Receive the Minutes from the Planning Commission Meeting of June 21, 2017. RECEIVED. 3. Final Plat Request, P.S. #17-03, by Kurt Manufacturing Co., Inc., to Replat the Property by Taking Two Irregular Shaped Lots and Creating Two Rectangular Shaped Lots, Generally Located at 7585 Highway 65 N.E. and Resolution Approving Final Plat, P.S. #17-03, by Kurt Manufacturing Co., Inc., to Create Two Rectangular Shaped Lots from the Properties Located at 7588 Highway 65 N.E. and the Vacant Lot to the east of 7585 Highway 65 N.E. (Ward 2). APPROVED ANDADOPTED RESOLUTION NO. 2017-37. 4. Receive Bids and Award contract for the Main Street Drainage Improvements Project No. 17-486 to Lametti & Sons, Inc. Mr. Wysopal stated this was in the amount of $183,950. RECEIVED BIDS AND AWARDED CONTRACT FOR THE MAIN STREET DRAINAGE IMPROVEMENTS PROJECT NO. 17-486 TO LAMETTI & SONS, INC., IN THE AMOUNT OF $183,950. 5. Claims (1707 (ACH PCard) and 177308 - 177535 APPROVED. ADOPTION OF PROPOSED CONSENT AGENDA: MOTION by Councilmember Barnette to adopt the proposed consent agenda. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF JULY 24, 2017 PAGE 3 OPEN FORUM, VISITORS: No one in the audience spoke. ADOPTION OF AGENDA: MOTION by Councilmember Bolkcom to approve the Agenda. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. PUBLIC HEARING: 6. Consider Transferring Property from the City of Fridley to the Fridley Housing and Redevelopment Authority for Development; and First Reading of an Ordinance Pursuant to Section 12.06, of the City Charter Declaring Certain Real Estate to be Surplus and Authorizing the Conveyance Thereof. MOTION by Councilmember Saefke to open the public hearing. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING WAS OPENED AT 7:12 P.M. Scott Hickok, Community Development Director, stated earlier this year, the City approved a plat for the entire Locke Park Pointe Development area. Once platted, the HRA transferred ownership of parcels necessary to accommodate the Civic Campus. Mr. Hickok presented a map and described the original Columbia Arena site. He said the original plat then took the larger box which would have included the park area, soccer fields, etc., below and also the existing Public Works facility which is part of what they now see as Outlot A. To accommodate the civic campus, Lot 1, Block 1 was transferred to the City and also Outlot B which would accommodate the pond area which was really the storm pond area for the civic portion and the private development as well. Lot 1 and Outlot B were conveyed to the City from the HRA in the portions that were owned by the HRA. Mr. Hickok stated in the transfer of property being considered tonight, the result Lot 1 and Outlot B now belong to the City. In exchange, the City has asked to transfer Outlots A, C, E, and F to the HRA to accommodate a private mixed development. FRIDLEY CITY COUNCIL MEETING OF JULY 24, 2017 PAGE 4 Mr. Hickok stated staff recommends Council hold a public hearing and receive comment at this meeting and recommends approval of the first reading of the attached ordinance which would allow the conveyance of Outlots A, C, E, and F to the HRA. The second reading is anticipated to be held on August 14. Mayor Lund stated Mr. Hickok referenced in his presentation about transferring Outlots A, C, and F. His comment is related to transferring Outlot E to the HRA. He said he lives in the area, and this is currently where one of the pump houses for the City is located. There is also a small neighborhood park with some playground equipment located there. He said he did want to involve the neighborhood that is directly adjacent to the park. In all fairness they should be made aware of that change. He is requesting a continuance of the public hearing to allow the neighbors to come to the next meeting. Councilmember Barnette stated he supports that 100 percent. He said he also lives in the area and has strong to keep the park area. Councilmember Bolkcom stated the possibility that the park could go away was news to Council as they read their packet this weekend. She asked Mr. Hickok to talk a little bit about options. Mr. Hickok stated they have talked about the patio homes that would have been on Outlot F and 18 patio homes along two north/south streets. It was only after the developer responded to their RFQ that the question or possibility of additional units was discussed. Now it is being discussed in more of a negotiation format. Staff and the HRA understand the interest in the parks and there were some discussions about the soccer fields and the playgrounds. Mr. Hickok stated what the developer has said though is that 18 units is not quite enough for them as they see it, although it does provide some of the patio homes residents have asked for. When they have sold 90 percent of the units to an association, they want to be certain there is a strong enough number of units so that there is a healthy association. Mr. Hickok stated national statistics show that you need a certain amount of people in there. With 18 units there is going be some excitement early on, you will get a 4/5 person board out of 18 units, but after the first couple of years and people have decided they have done their term, you want enough people in there to continue to have a healthy board. A board is a really important thing to a homeowners association and the City wants to have a healthy one. Otherwise, you have 18-30 units joined at the hip without any cohesiveness and the City may start to hear from the residents who live there that they are not doing what is expected to be done as part of their association fees. Mr. Hickok stated staff did some research and found that 30 units would be an adequate number of units to be healthy. Staff looked at alternatives. He thinks there may be an opportunity to take the playground and reposition it, but they do not have an absolute answer as to where it would be. This is part of the current negotiations, and staff hopes to come to Council shortly with more conclusive descriptions of how it would all work. FRIDLEY CITY COUNCIL MEETING OF JULY 24, 2017 PAGE 5 Mr. Hickok stated in the meantime, the HRA would like to be able to know they have some land area to negotiate with. The HRA does not just see this as a land grab. If the land does not have to be developed, it could be left as an outlot. This discussion truly has unfolded as they have negotiated and talked about how this development will ultimately happen. They will bring it to Council as soon as they know. Mayor Lund said he is willing to be open-minded. He does buy into Mr. Hickok’s comments that the developers have made a change they see as a benefit. Mr. Hickok is correct in saying if the development is too small, the association is less likely going to be successful over time. A larger association probably has its merits. On the other hand, while he thinking about this and weighing the good and the bad, he does feel a strong obligation to the neighborhood. There has been a lot for the neighborhood to swallow over the last couple of years while they have gone through this process. This is enough of a little winkle, and he has told them repeatedly he would keep them informed as things occurred that merited their attention. They should continue the public hearing and allow for public comment. They should notify the neighborhood that is mostly affected. Mr. Hickok stated he recognizes and respects that. Councilmember Bolkcom stated they also discussed it would go back and staff would come back with some options to go to the neighborhood. Councilmember Saefke stated he understands the logic behind the developer’s proposal. On the other hand he also recognizes there is a big demand for those types of patio units. A lot of people have approached him about them. However, he does believe they owe it to the neighborhood to inform them of this new wrinkle. He agrees with the Mayor and everyone else that it should be continued. Councilmember Bolkcom asked if they should have a meeting before the public hearing with the neighborhood to lay out the options. Mayor Lund stated he does not see that. The neighborhood will have an opportunity to come to the public hearing and comment. Councilmember Barnette stated it will be something that will be discussed at Night to Unite. Mayor Lund stated it will just be an invitation. Darcy Erickson, City Attorney, thought a mailing to the neighborhood should be done. Mayor Lund stated either that or he was going to contact the block captions. Councilmember Bolkcom stated it makes sense to do a mailing indicating there is going to be further discussion about the park and they should come to the public hearing, and if they cannot attend and want information, list who they should contact. FRIDLEY CITY COUNCIL MEETING OF JULY 24, 2017 PAGE 6 MOTION by Councilmember Saefke to continue the public hearing and the first reading of the ordinance to August 14, 2017. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING WAS CONTINUED AT 7:30 P.M. OLD BUSINESS: 7. Second Reading of an Ordinance Amending Fridley City Charter, Chapter 7, Taxation and Finances. Deb Skogen, City Clerk, statedMinnesota Statutes allows for a Charter amendment by ordinance upon recommendation of the Charter Commission. It does require publication of the public hearing notice and the full text of the proposed amendment at least two weeks prior to the public hearing. The Charter Commission recommended the amendment to the City Council on May 15, and then scheduled the public hearing on May 22. The public hearing notice before the City Council and ordinance text were published in the official newspaper on June 2. The public hearing was held on June 26, 2017, and the first reading was held July 10. Ms. Skogen stated the amendment to Section 7.02.1 proposes a change to the restriction by removing the inflationary consumer price index (CPI) allowing Council to increase the tax levy up to 5 percent over the previous year’s tax levy and up to an additional 3 percent with an affirmative vote of 4 members of the City Council. The amendment now requires a second reading and a unanimous vote of the City Council to become adopted. If the vote is unanimous, the ordinance becomes effective 90 days after publication, or on November 2. Ms. Skogen said staff recommends waiving the second reading of the ordinance and adopting the ordinance amending the Fridley City Charter, Chapter 7, Taxation and Finances. Councilmember Bolkcom asked if the second reading passed, would it be published on Friday, August 4. Ms. Skogen replied next Thursday. Councilmember Bolkcom replied, it states in their packet August 4. Ms. Skogen stated they usually get the paper on Thursday, but the actual publication is Friday. MOTION by Councilmember Saefke to waive the reading of the ordinance and adopt Ordinance No. 1345 on second reading and order publication. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF JULY 24, 2017 PAGE 7 NEW BUSINESS: 8. Resolution Abating the Street Rehabilitation Project No. ST 2016-01 on PIN Number 26-30-24-32-0028 (Ward 3). Shelly Peterson , Finance Director, stated this is an abatement on a particular PIN within that project area. This is a parcel that does not have an address or street access. It was submitted to the County in error; therefore, the City has to go through the abatement process to remove it from the assessment. The County would then go through the same process. Mayor Lund asked if it was a buildable lot. Ms. Peterson replied they have determined that you cannot build on this property. Mayor Lund asked if there was a way to add other property adjacent to it that would make it a buildable lot. Ms. Peterson replied the property is not owned by the person who lives adjacent to it. At this time it is unbuildable. Mayor Lund stated so there is a property owner who is not directly connected to this property, is not adjacent to it; and this person is paying taxes on it albeit probably small taxes. He is just wondering if he would ever sell it. He said there was not access or curb cut. Ms. Peterson replied correct. Mayor Lund stated that is the only thing that makes it different from being accessible to the street, there is no curb. Ms. Peterson stated there is no sewer or water connection at that location either. Mayor Lund stated he just wanted to make sure it was not buildable and if it ever was. James Kosluchar , Public Works Director, stated the lot is 35 feet wide. Setbacks would encroach pretty dramatically into that. You could potentially build some kind of structure, but it would not be habitable. It is kind of strange because this lot was like this from the original plat. When they put in utilities, they did not stub out water for sure. Not sure about sewer. They bypassed this lot specifically. It is a strange artifact from an older plat that they would have left this as an outlot more or less. The neighbor could build on it. Mr. Kosluchar stated the reason this was missed on the assessment roll is sometimes they deal with typos with PIN’s and things like this. However, this was actually filtered through. The individual who lives in the neighborhood did get assessed on another parcel and his ownership address showed up as a larger lot. The City has created a new practice to filter through that a little bit better. FRIDLEY CITY COUNCIL MEETING OF JULY 24, 2017 PAGE 8 Mayor Lund stated he is not against this change. He thinks it is great that they caught it and it shows the honesty and the integrity of staff. Ms. Peterson stated in this situation, the property is owned by someone other than the adjacent lot owner. If it ever were owned by the adjacent lot, the assessing department does have a method of increasing that value for the benefit of that neighbor. As far as the assessment goes, staff would like to look at that in the City’s policy to see how they would address that moving forward. Councilmember Saefke stated it says the original assessment was $2,125.93 yet they are approving an abatement of $2,262.61. The balance on it is $1,913.34. If you take the $1,913.34 and add the $349.28 which they have already paid, you come up with $2,262.62. When you subtract the $2,125.93, and you wind up with $136.69. He asked where that came from. Ms. Peterson replied it is interest and it is better described in the resolution. Councilmember Saefke asked if the owner is getting the interest back. Ms. Peterson replied yes. MOTION by Councilmember Bolkcom Adopting Resolution No. 2017-38. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 9. Resolution Authorizing Signing an Employment Agreement between Certain Employees Represented by Local No. 1986 (Firefighters). Deborah Dahl , Director of Human Resources, stated the Fire Union is identified as I.A.F.F. Local No. 1986. It is one of three labor groups at the City. Currently, there are three members in this fire union, and their titles are only captains, even though the Agreement stipulates they are the City’s full-time firefighters and full-term inspector in terms of the Agreement. Ms. Dahl stated the contract expired on December 31, 2016. Because these are essential employees, they must reach an agreement with the City. They cannot strike. If they cannot reach an agreement, they need to go to arbitration to resolve any dispute. Ms. Dahl stated this year they met on three occasions and discussed a number of interests and negotiated terms. She is very happy to tell Council they were able to reach a tentative agreement. Ms. Dahl stated the Fire Union recognizes the burden of the City’s economic conditions and appreciates the challenges it faces because of the levy restrictions, as well as some of the priorities with the new civic campus. FRIDLEY CITY COUNCIL MEETING OF JULY 24, 2017 PAGE 9 Ms. Dahl stated wages were at the center of their discussions. The market is always the primary issue in trying to remain competitive. The challenge with this group is trying to identify the market. It is important to note that very few cities compare to the Fridley in terms of the kind of Fire Department it offers. It has what the City calls, a combination department with full-time and paid on-call. Ms. Dahl said in 2006, the City started revising a lot of its compensation plans. The City wanted to revise them for non-union, and also use them as a benchmark for its other unions. Ms. Dahl stated in 2015, staff took its revised list and tried to provide that to the City’s unions to agree to a new market. Again, similar with the sergeants in the Police Department, that was not obtainable with this group. Ms. Dahl stated staff proceeded with what they felt were good discussions. The message was really to keep pace with what was perceived to be the market. The City is continuing to lag behind just slightly with a number of the base wages. Staff sees that across this group as well as with non-union employees. Ms. Dahl stated for Fridley, recruitment and retention is critical, not only for wages for staff to compare to the market, but also internally. Staff is always trying to maintain a good balance between the City’s current employees--non-union, and unions. Staff spends a lot of time trying to make sure they hear what the concerns are and work the relationships through. Ms. Dahl stated what Council has before them are the terms of the agreement that was agreed upon by the parties. It is a three-year contract for 2017-2019. The insurance, like the other groups, is the same as the City’s non-union employees. That has been something the City has been able to maintain for a very long time. Ms. Dahl stated the wage increase for this group is only going to be at the captain’s level, which would be 2 ½ percent for 2017, 2 ¾ percent for 2018, and 3 percent for 2019, on base wages only. With respect to the full-time firefighters and full-time inspector who are listed in the contract, there are no people in those positions. The parties agreed to leave those wages flat. Ms. Dahl stated the non-union, as Council will remember, received 2 percent for 2017 and 2 percent for 2018. This contract also mirrors a lot of what they saw in the sergeants’ contract. Ms. Dahl stated the contract provides for one additional City-paid holiday, making it 12 days. They increased their uniform allowance, $5 in 2018 and $10 in 2019. The current rate for that is $545 per year. Ms. Dahl stated there was just a minor language change to move the retiree health savings account which they contribute to under Insurance, Article 21.10. Ms. Dahl stated she estimated the costs in the memorandum for 2017, 2018, and 2019. It increases the City’s fund for unplanned expenses about $2,013.06 for 2017. These wages do not include overtime and sometimes, very rarely, there may be court time. It is unplanned in terms FRIDLEY CITY COUNCIL MEETING OF JULY 24, 2017 PAGE 10 of any kind of overtime. It is possible that PERA will come back with a legislative change in this coming year which might increase that contribution; therefore, she has not estimated that as well. Ms. Dahl stated at the last meeting, Council approved the Sergeants’ Labor Agreement. As to patrols, the negotiations are continuing. There may be mediation with them later in August, but there is still an opportunity for them to meet and try to resolve some of those concerns as well. The City does not have a maintenance union which is rare. That union asked to be decertified in 2000. Ms. Dahl stated staff is asking for Council to approve the resolution before them. It will then make that effective January 1, 2017, and retroactive pay will begin within the next few weeks. She said she was proud of the work that went into the labor negotiations. All the labor groups and the representatives are very dedicated and passionate. Their requests were reasonable. She is grateful for Chief Berg’s participation and leadership. Mayor Lund stated it seemed to be a fair deal as he read through it. Councilmember Saefke stated he believed the contract to be fair and reasonable and had no problem with it. MOTION by Councilmember Saefke to adopt Resolution No. 2017-39. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 10. Approve a Memorandum of Understanding between the City of Fridley and the Rice Creek Watershed District for a 2017 Metropolitan Council Stormwater Grant for the for the Fridley Civic Complex. James Kosluchar, Public Works Director, stated in the spring of 2016 and 2017, staff requested the Rice Creek Watershed District to apply for a stormwater system grant through a Met Council program for the Fridley Civic Campus Project. They had to actually re-request in 2017 because the City was not selected in 2016. Mr. Kosluchar stated the new program is intended to fund water quality improvements for projects that go above and beyond their required regulatory threshold. The proposed project will be on the Fridley Civic Campus, and will serve the private development to the south as well. It will improve the water quality of the stormwater runoff by adding iron-enhanced sand filter treatment systems. Basically they look like golf course sand traps. There is a system that pumps water up to them, and the water will recirculate through the City’s ponds. Mr. Kosluchar stated the City had the highest score of the project submitted this year. The Met Council awarded a grant of $159,000. They had requested $209,000 but they had a lot of projects and spread the awards around a little bit more. FRIDLEY CITY COUNCIL MEETING OF JULY 24, 2017 PAGE 11 Mr. Kosluchar stated in addition, the Rice Creek Watershed District budgeted $70,000 in their 2017 budget to assist with this project. Mr. Kosluchar stated the Rice Creek Watershed District as a formal grantee will be the agent for the grant. In the Memorandum of Agreement, the Rice Creek Watershed District identifies what the City will be responsible for. The City prepares the work plan and the budget, the local match, completes the construction for the Grant Agreement, and performs the required operation and maintenance. The estimated breakdown of funds is $159,000 from the Met Council, $70,000 from the Rice Creek Watershed District, and $192,000 plus in City funds. The City has a budget for the stormwater system, and will be able to provide for the stormwater and some of the pumping that is covered under this grant. The City will be able to provide improved water quality for the development and actually save $143,500 to the funding allocated in this grant. Mr. Kosluchar stated in order to formalize the funding commitment for the Met Council and the Rice Creek Watershed District, the attached Memorandum of Agreement (MOA) needs to be signed. It has been reviewed by legal counsel. There is one small change that needs to be made on the signature block and they let the Rice Creek Watershed District know. The Rice Creek Watershed District has a hearing on July 26, 2017, for the approval of the MOA. If approved, they will sign the documents and forward them to the City. Staff recommends the City Council move to approve the attached MOA with the Rice Creek Watershed District for the 2017 Met Council stormwater grant for the Fridley Civic Campus. If approved, the MOA will be executed, and implementation directed upon its receipt. Councilmember Saefke referred to two agreements and asked if they should be signed separately. Attorney Erickson , City Attorney, said the second agreement is one she understands will exist between the Rice Creek Watershed District and theMet Council since they are the grantee and the agent. The City is signing the first agreement because it essentially binds the City and would require them to do everything the Rice Creek Watershed District is going to have to do. Councilmember Bolkcom referred to page 113. Under paragraph 6(b) it states “As between the parties, the City will fully bear: (1) Project cost increases; (ii) the risk that, for any reason, the Council does not provide the full grant amount; and (iii) the obligation to return or repay any grant amount; as whether may arise under the Grant Agreement.” The City is not going to go through this if it does not have the second Agreement signed. If passed by Council, does it mean it would not go forward if for some reason the Met Council and Rice Creek Watershed District did not sign the second agreement? She asked if there were any projected increased costs that would come back to the City. Mr. Kosluchar replied the City would be responsible for increased costs. They will be providing the unlimited match. He does not mean to say it is unlimited in costs as they have a pretty good estimate. A lot of the work has been bid already and the City has alternate bids. FRIDLEY CITY COUNCIL MEETING OF JULY 24, 2017 PAGE 12 MOTION by Councilmember Saefke to approve a Memorandum of Understanding between the City of Fridley and the Rice Creek Watershed District for a 2017 Metropolitan Council Stormwater Grant for the for the Fridley Civic Complex. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. st 11. Approve Change Order No. 1 for the 71 Avenue Watermain Project 17-513. Jim Kosluchar , Public Works Director,stated on April 24, 2017, the City awarded a contract to st Land Pride Construction for the 71 Avenue Watermain Project. The goal was to relocate and upsize an existing distribution main for Locke Park Pointe redevelopment. The old main that serves Public Works, the fire training center, and Columbia Arena itself ran through the middle of the site, and the City needed it to move it. Mr. Kosluchar stated the project included 1,370 lineal feet of 12-inch watermain, hydrants, valves, and utilities stubs and fittings. The project had a very tight timetable. Being awarded at the end of April, they had about two to three weeks in May to get it done to avoid a conflict with the Fridley Civic Campus Project. The contractor also needed to maintain access to the existing Public Works facility for operations purposes. Mr. Kosluchar stated there were a number of changes. There was realignment to avoid utility conflicts in the Public Works area. That was a reasonable amount. The second and third changes were the tough ones. They had some changed groundwater and soil conditions that affected about one-quarter of the project. Unfortunately, they were not able to successfully bore the pipe through that section. Staff knows that directional boring from the City’s other bids and alternate bids in the past have been cheaper. The reason is because of No. 3, which was the restoration work. Mr. Kosluchar stated No. 4 was a simple soil correction at the Public Works site. They ran into some organic soils and removed those, and they had dewatering. Numbers 2, 3, and 5 are kind of lumped together based on a groundwater condition that was about four feet higher than what the City’s borings showed on the site. They had a lot of borings on the site. Mr. Kosluchar stated he knows the change order is quite substantial. Staff directed this additional work because of the conditions that had changed. The contractor worked diligently and hard to perform corrective work without delay. They also absorbed some of the miscellaneous cost of the additional work. The work is being funded by the Water Utility Fund, and will amend the Capital Investment Plan. They had it in the draft for this year, so it was at the original bid amount. Mr. Kosluchar stated staff recommends Council approve Change Order No. 1 which is the final change order for this project in the amount of $146,065.68 to Land Pride Construction. If approved, their contract amount would increase accordingly. FRIDLEY CITY COUNCIL MEETING OF JULY 24, 2017 PAGE 13 Mayor Lund stated it is surprising from last year to this year how the water table was so dramatically higher. Mr. Kosluchar replied, and that is a common condition they have had throughout Fridley. He would say it is higher than anybody recalls who is working with the City. They have up to 37 years on the City’s employees. There are homes which are 50 years old that do not have sumps and are starting to leak water. They had the September rainfall that was severe and it just has never stopped. Staff is dealing with it pretty much all over the City. They did not anticipate that much of a difference. They felt comfortable and even had monitoring wells on the Columbia Arena site that were monitoring and verifying that the groundwater readings from the borings were right and they were right on and consistent. It was the stretch basically west of the Public Works garage gate. Mayor Lund stated on the same property recently one of the City’s mowers got stuck in the th grass mowing near 69, right on the curb. That has leaked for several years. He has mentioned it before thinking either it has to be groundwater seeping out of the ground which has created that soft spot because even when it is dry for weeks, water will seep out of that ground right by the curb and run down the street. Or, it has to be an irrigation leak. That has been like that for four or five years now. Mr. Kosluchar stated he believed the Water Department staff went out there and sampled and looked for chlorine and did not pick any up. They presume it is groundwater. He said he was contacted by a few citizens at Craig Park, and they cannot get in there to mow at all. It has never been that bad. Councilmember Bolkcom asked where the money was coming from. Mr. Kosluchar replied it is all being budgeted to the Water Utility Fund. Councilmember Bolkcom asked if the cost increased because of the timeframe. Mr. Kosluchar replied, they had a tight timeframe in the bid so that may have been reflected somewhat in the initial price. The change order work itself did not increase because of the timeframe. He said the contractor stayed until this was done and fixed. They probably had work lined up that they had to push back. Councilmember Saefke stated back when the addition of the office area was put on the Public Works building, the City’s Water Department had to move the watermain because it would have gone straight through the office area. They worked on the weekend to move it. He can verify the fact that they did hit water but it was right at the 6 ½ foot mark. They had to kind of work fast. He can understand why it would have been high because where it went, just outside the gate, used to be pretty much a wetland to begin with and the soils are not very good either. It is not pleasant but he can understand what happened. Also, it is tough working in those conditions. st MOTION by Councilmember Saefke to approve Change Order No. 1 for the 71 Avenue Watermain Project 17-513. Seconded by Councilmember Bolkcom. FRIDLEY CITY COUNCIL MEETING OF JULY 24, 2017 PAGE 14 UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 12. Informal Status Report – There were no informal status reports. ADJOURN: MOTION by Councilmember Barnette, seconded by Councilmember Varichak, to adjourn. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 8:15 P.M. Respectfully submitted by, Denise M. Johnson Scott J. Lund Recording Secretary Mayor