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CCM 08/28/2017 CITY COUNCIL MEETING CITY OF FRIDLEY AUGUST 28, 2017 The City Council meeting for the City of Fridley was called to order by Mayor Lund at 7:04 p.m. ROLL CALL: Mayor Lund Councilmember Barnette Councilmember Varichak Councilmember Saefke Councilmember Bolkcom OTHERS PRESENT: Wally Wysopal, City Manager Darcy Erickson, City Attorney Julie Jones, Planning Manager Shelly Peterson, Finance Director James Kosluchar, Public Works Director Connie Metcalf, 860 West Moore Lake Drive Sam Salsite, 850 West Moore Lake Drive Shirley Schmidt, 870 West Moore Lake Drive APPROVAL OF PROPOSED CONSENT AGENDA: APPROVAL OF MINUTES: City Council Meeting of August 14, 2017. APPROVED. NEW BUSEINSS: 1.Claims: 1708 (PCard); 177777 – 177924. 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. FRIDLEY CITY COUNCIL MEETING OF AUGUST 28, 2017 PAGE 2 OPEN FORUM, VISITORS: Connie Metcalf , 860 West Moore Lake Drive, said that 39 residents on the west side of Moore Lake have signed a petition for the City to clear the weeds off of Moore Lake. The City needs to do something about this, as it is not a pleasant sight. Jim Kosluchar talked to the Rice Creek Watershed District and their report said the water is clearer than it has ever been. She is concerned about the appearance of the lake and the navigability of the lake. The City needs to think about the future of the lake. MOTION by Councilmember Barnette to receive Petition No. 2017-01 into the record. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Sam Salsite , 850 West Moore Lake Drive, said he worked with the neighbors on the petition. He just moved into the area in October and was excited to have a lake home but he is unable to enjoy the lake because it is too weedy. He is concerned that if the lake gets worse, the property values will go down. Shirley Schmidt, 870 West Moore Lake Drive, said the City brushed out the sand dune area. If the City could clean that up, she wondered why they could not clean up the lake. Mayor Lund said that Council would take this under advisement. Wally Wysopal , City Manager, noted that the cleanup of the brush was done by a volunteer environmental group for the betterment of the park. Jim Kosluchar, Public Works Director, added that the brush was hauled out by City crews. Laura Ingebrigtsen, 5831 West Moore Lake Drive, said she was worried about the wildlife in the lake--the ducks and wood ducks. She said that the bike trail is being put in and most of the neighborhood is not for that. She asked if the money could be used to clean the lake. Mayor Lund replied that the bike trail is funded with safe routes to school funds and the money is regulated as to how it can be spent. 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. FRIDLEY CITY COUNCIL MEETING OF AUGUST 28, 2017 PAGE 3 PUBLIC HEARING/NEW BUSINESS: 2.Consideration of Vacation Request, SAV #17-03, by the City of Fridley, to Vacate an rd Unimproved Portion of Washington Street N.E., Generally Located North of 53 Avenue N.E. and East of Seventh Street N.E. And Resolution Vacating a Section of Washington Street, which is Public Right-of-Way rdrd Along 53 Avenue N.E., Generally Located between 521 and 551 – 53 Avenue N.E. MOTION by Councilmember Saefke to waive the reading of the public hearing notice open the public hearing. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING OPENED AT 7:13 P.M. Julie Jones, Planning Manager, stated the adjoining property owner would like to have control of City property. The City has no plans to expand a street through this right of way and would prefer to have property on the tax rolls and not have to incur maintenance costs on property. The rd land includes two 30-foot wide sections between 521 and 551 53 Avenue, and the total size is 60’ x 134’. The parcel does not connect to 53 ½ Avenue, so there is no need to preserve the right-of-way. Ms. Jones noted that there are currently no City utilities but some private utilities; electric, Comcast and CenturyLink utilities on the north end. No easement was found in the records. The gas pipeline easement is on the south end. There is a 5’ Drainage and Utility Easement on the north end, a 15’ Drainage, Utility, and Transit Easement on the south end. The City Attorney advises changing legal description of easement to simply omit the south 20’ from the vacation. This will preserve the easement in place for the pipeline easement and space for possible future sidewalk or transit stop. rd Ms. Jones stated that 30 feet goes to the owner of 521 53 Avenue and 30 feet goes to the owner rd of 551 53 Avenue. If one of the adjoining property owners wants the entire 60-foot parcel, they will privately need to arrange that purchase. A public hearing notice was published in the Sun Focus newspaper and the property owners within 350’ were notified. The City Council will public testimony and consider adopting the resolution. If approved, staff will file the vacation and easement documents with the County. Staff recommends Council to direct staff to correct the legal description of the vacation to exclude the south 20’. The City’s power to vacate and create easements is limited. Mayor Lund asked if excess land is usually free. Ms. Jones replied this is right of way property, so it is treated like a vacation. Sometimes the City may ask for a fee, but staff initiated this because we thought it was right thing to do. The property owners may have fees for replat in the future. FRIDLEY CITY COUNCIL MEETING OF AUGUST 28, 2017 PAGE 4 rd Joann Milner , 551 – 53 Avenue N.E., said she is not interested in additional property. rd Christine Moore , 501 – 53 Avenue N.E. said she is excited about this because she feels that people’s lives are in danger at that stop sign. It is a dangerous place for a bus stop; there is no sidewalk and not everyone stops at the stop sign. Mayor Lund noted that this action does not guarantee there will be a sidewalk there. Ms. Moore said she understood that but noted that a sidewalk would be great because no sidewalk is a danger to the community. Councilmember Bolkcom asked if it was 20’ or 15’ and asked for the process on how to change this and the relationship about the portion and pipeline easement to be reviewed again. Darcy Erickson, City Attorney, stated the City has the power to reserve when it vacates a street, a utility or drainage easement. The City may not want to vacate the southerly 15 feet for a bus rapid transit because it would fall within the public right-of-way. With respect to the pipeline on the southern end, that is a separate independent easement and legally recognizable property interest. Staff is suggesting to either make the 20’ southerly section not part of the legal description; or do 15’ and in both cases omit reference to the pipeline easement. Either vacate it and omit 20’ or 15’ and remove the lines to the pipeline easement. Council can approve the resolution subject and contingent to staff and the City Attorney to omit a portion of the legal description. City staff will remove the reference to the pipeline and revise the exhibit accordingly. MOTION by Councilmember Bolkcom to close the public hearing. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING CLOSED AT 7:25 P.M. MOTION by Councilmember Saefke to approve Vacation Request, SAV #17-03, by the City of Fridley, to vacate an unimproved portion of Washington Street N.E., generally located north of rd 53 Avenue N.E. and east of Seventh Street N.E., contingent upon modification by the City Attorney and City staff to reflect that the southerly 20 feet shall not be vacated and the reference to the pipeline easement established pursuant to Document No. 306013 shall be removed and Exhibit A revised accordingly; and to adopt Resolution No. 2017-40. Seconded Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF AUGUST 28, 2017 PAGE 5 NEW BUSINESS: 3.Receive Bids and Award the I-694 Water Main Rehabilitation Project #17-514 (Ward 3). James Kosluchar , Public Works Director, stated on Tuesday, August 22, at 10:00 a.m., sealed bids were opened for the I-694 Water Main Rehabilitation Project #17-514. Two bids were received and one qualified as responsive. The low responsive bid was received from Fer-Pal Construction USA, LLC of Elgin, IL in the amount of $154,888.00. This is under the final engineer’s construction estimate for the project of $214,000.00. A second bid received from Insituform Tech USA, LLC was considered non-responsive. Mr. Kosluchar said this project will rehabilitate the water main using the no-dig method of structural cured-in-place pipe lining (CIPP), approximately 440 feet of 12-inch cast iron utility lying beneath I-694, just west of University Avenue N.E. This segment of pipe was discovered to have a leak in an unknown location in December, 2016. At that time, City utility crews attempted to repair the water main leak using standard open-cut excavation, which disturbed an on-ramp of I-694 and was unsuccessful in locating the leak. A portion of the pipe is in a casing, so determining the leak location under I-694 was not possible. This project was not in the Capital Investment Plan for 2017, but an allocation of $200,000 was made in the 2018 draft CIP (2017 construction year) to accommodate the repair. The base project is within this budget. Mr. Kosluchar said although there is only one responsive bid, staff believed the pricing received was very competitive, and would deliver the project with the requisite quality specified in the bid documents. Staff recommends the City Council move to receive the bids per the attached bid tabulation and award the I-694 Water Main Rehabilitation Project #17-514 to Fer-Pal Construction USA, LLC of Elgin, IL in the amount of $154,888.00. If Council approves, staff will notify the contractor of the award and issue a notice to proceed to the contractor upon receipt of acceptable submittals. Councilmember Bolkcom said staff indicated the City would do the other section in the future if there is a larger leak. She asked why they did not do it now. Mr. Kosluchar replied the main is smaller and it does not have a problem. Staff thougt the cost for this alternative was too high. Councilmember Bolkcom said staff could not find the original leak. She asked if staff felt confident this project will take care of the leak. Mr. Kosluchar replied the leak was isolated by valving it off. There were no more leaks, so staff knew it was between those two spots. The alternate is pipe jacking where you take a pipe and ram it under the freeway, and it is not a good method. This is a more economical method. Councilmember Bolkcom asked if this would interrupt traffic. Mr. Kosluchar replied no. FRIDLEY CITY COUNCIL MEETING OF AUGUST 28, 2017 PAGE 6 MOTION by Councilmember Bolkcom to receive bids and award the I-694 Water Main Rehabilitation Project #17-514 to Fer-Pal Construction USA, LLC. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 4.Resolution Approving and Ratifying the Escrow Agreement for Parcel No. 12-30-24-21- 0002, Amending the Deferred Assessment Placed on Parcel Id. No. 12-30-24-21-0002, Under the 1986-1 Street Improvement Project and Identifying the Sum Owed as $44,080.59, and Directing City Clerk to Effectuate Collection of Deferred Assessment from Escrow Funds with the Escrow Agent. Shelly Peterson, Finance Director, stated that beginning in 1986, the City had discussions with property owners regarding the street improvements and necessary easements planned for 1986. During discussions related to the Viron Road loopback portion of the project, the City agreed not to levy any assessment for that improvement against the Wayne Dahl Property (7699 Viron Road) until such time as the property was sold, re-platted, or had a new development in excess of 3,600 square feet. The City abated the first installment of that assessment and deferred the entire assessment of $18,979.78 until that future unknown date. As described in Resolution No. 36-1987 and consistent with all other assessment deferrals, interest has accumulated. Today, the City would require a payment in the amount of $165,503.44. Ms. Peterson said staff has reviewed the documents related to this deferred assessment and those of the other owner assessed for the same project. In an effort to expedite the sale of the property, staff had determined that it was in the best interest of the City and the property owner to calculate interest through a term consistent with the other property owner under the 1986-1 Street Improvement Project. The term of this assessment was 10 years. If Mr. Dahl’s property assessment not been abated and was deferred without payments, the City would have been owed a total of $44,080.59 during that ten-year assessment period. Ms. Peterson stated staff recommends Council approve amending the original deferred assessment placed on Parcel Id. No. 12-30-24-21-0002 to accrue interest through December 31, 1996, and request the release of funds currently held in escrow with the sale of the property. MOTION by Councilmember Barnette to add Exhibit B into the records. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Randall Tigue , 604 North Lilac Park, Golden Valley, representing Wayne Dahl, said it is important to note the nature of the transaction and agreement made with the City. The City gave an easement across the property and entered into an agreement through eminent domain. An agreement from John Flora, Public Works Director, was received in writing to the affect that no assessment would take place based upon voluntary conveyance of the property. Minnesota FRIDLEY CITY COUNCIL MEETING OF AUGUST 28, 2017 PAGE 7 Statute, Section 429.061, Sub 1, requires a mailed notice to property owners what will be assessed. Mr. Dahl requested records of the assessment from August 8, 1986, and November 19, 1987. John Flora wrote a letter to Mr. Dahl stating that Mr. Dahl could request rezoning or expand the building on the premises. The City took the position to impose an assessment if the property was not rezoned or expanded. On November 19, 1987, Mr. Flora sent a letter stating that there were no requests for rezoning or expansion, therefore no street assessments with the Viron Road loopback would take place. Mr. Flora promised there would be no assessment. Finally, on April 6, 1987, Council voted to abate the assessment. Abatement means it ended, terminated and is over. Thirty years later when Mr. Dahl was selling the property, there was an assessment after Mr. Dahl was promised there would be no assessment and the City voted to abate the assessment. He urged the City Council to live up to their word and do what was agreed upon and not assess the property, and return the money to Mr. Dahl. Wayne Dahl , 177 Hartman Circle, stated there were two property benefits from this--I give you the land and we will not go through eminent domain. He said at the time he had three curb cutbacks. He lost the property, gave up and ended up with two curb cuts. Other businesses in the area received better access to their properties than he did. He said he was paying the same amount but lost access. He said that was when the City made three promises. Mayor Lund said the memo said the City would assess if the property was rezoned or expanded. The third trigger was the sale of the property as there was benefit with the road that was not there 30 years ago. Exhibit B to the resolution indicates that since the first payment was already on the tax statement of Anoka County, this speaks to remove the assessment because it was deferred. Mr. Dahl said that he did not request a deferment. Mayor Lund replied the documents do not read that way. The trigger did not happen for 30 years until the sale of the property. At the Council meeting on April 6 they talked about the abatement of the annual payment deferring until the property was sold, re-platted or redeveloped. The property was not redeveloped or rezoned. Abating the prior assessment and deferring to a later date does not make the assessment go away. Darcy Erickson, City Attorney, said the abatement was for an installment. The assessment is not made for 10 years all at once. It is levied, collected and sent to the County on an annual basis. Mr. Dahl asked how come nothing was done after Council said they would abate it. Attorney Erickson replied that the abatement was for a single installment. Mr. Dahl said that the assessment was put on in August of 1986 and never showed a reduction and it has gathered interest for 30 years. Attorney Erickson said that the assessment was deferred with the County. FRIDLEY CITY COUNCIL MEETING OF AUGUST 28, 2017 PAGE 8 Patrick Maghrak, Senior Appraiser, said the principal balance is applied on an annual basis and is public information. At any time, Mr. Dahl could have called and asked if he had an assessment pending on the property. The answer would have been yes and he would have been given the amount with interest at that time. Mr. Dahl said this was the first time he had heard about this in 30 years. He asked about notices. The City mails out notices via certified mail and should have receipts. There is no record retention of the notices. Mr. Maghrak replied that record retention for certified mail is kept for six years. There is a lifetime requirement on the assessment role and that was sent a few weeks ago. This clearly states mailed notice and name on page 30 with the current mailing address. Council has been doing resolutions for decades and the City has never received any complaints from people that they did not get their notices. We are not required to keep letters past six years. Mr. Dahl has letters from 1986 and extensive documentation of Council stating to abate it and Mr. Flora said there would be no assessments. Mr. Maghrak said the content of Mr. Flora’s letter was taken out of context. Mr. Flora has no authority to abate, only Council can abate. Council abated and deferred the payment. There is a memo from Director Pribyl that you had asked for a deferral. Mr. Dahl said there was going to be no assessment because they gave us all the land. Mr. Maghrak stated that no land was received, it was an easement. You got land on the west side. We did not inhibit your ability to develop that property. Mayor Lund asked if Mr. Dahl had any document on the land swap and deed. Mr. Dahl said he did not have it with him. Councilmember Bolkcom said there are no official letters except the resolution from April 6, 1987. Council abated the prior assessment and deferred it to a later date and the record explains the reasons why. The resolution was passed and is the official record. Ms. Peterson said the resolution Council approved was sent to the County Board and recorded with the property. Councilmember Bolkcom said it was adopted and certified letters were sent. Jim Kosluchar, Public Works Director, said state statute does not require certified letters. Mayor Lund said he would like to allow the closing to occur with escrow and try to be reasonable and reduce the $165,000 to a 10-year assessment of $44,000. The City has been generous. FRIDLEY CITY COUNCIL MEETING OF AUGUST 28, 2017 PAGE 9 Mr. Dahl said he thought that the trigger of when the land sells was ridiculous. Everything will be sold eventually. He said if he hung on to it for another 30 years, the assessment would be a million dollars. Mayor Lund said Mr. Flora had no authority to put in a memo that there are no assessments. The argument is that abating the assessment on the taxes would occur if redevelopment or rezoning happened but those plans went away and the City abated that portion of it. Mr. Dahl said nothing was abated. The assessment was applied the same day as John Flora’s letter; it was agreed not to assess on August 8in exchange for the land. The balance on the County taxes on August 8, 1986, went up as interest accumulated and there was never a reduction. The City abated one year but the numbers do not reflect a single cent. Ms. Peterson replied during the discussion at the August 1986 Council meeting, John Flora recommends to the City Manager the stipulation to assess the cost improvement loopback estimated at $22,000 to come into place if certain criteria were met. The assessment took place in September of 1986. Looking at the tax statement, reports from the County show the first year installment of 1987 taxes and the next year shows it was removed. Mr. Dahl said that the records Mr. Maghrak gave us showed something different. Ms. Peterson replied that was an internal City log for accounting and audit purposes. The abatement was removed the first year. Attorney Erickson noted the City cannot be bound by action put forth by the Public Works Director and there is no record that there would be no assessment. Mr. Wysopal added that there is no record on the deed. Attorney Erickson stated that an agreement not to assess the property would need to be signed by Council. Mr. Wysopal said that to abate an assessment and enter an exchange for a parcel would require Council do to something. Attorney Erickson added that a signature on the agreement is required by the City Mayor and City Manager by the City Charter and nothing was found or produced. The request for deferral is all staff could find. Mr. Dahl said that Mr. Wysopal could reduce the amount like he is suggesting tonight. John Flora wrote a letter with the deal that was made. He asked why the City Manager did not have the power to do it at that time. Attorney Erickson replied that Mr. Wysopal has not made that decision. Part of the action tonight is to ratify and approve the action. FRIDLEY CITY COUNCIL MEETING OF AUGUST 28, 2017 PAGE 10 Mr. Wysopal said this is a time-sensitive item with the closing of the property, and the City has proposed to reduce the amount to a fair amount due to the cloud that surrounds this. The City decided to look at the 10-year assessment and offer an agreement. As City Manager, I have no authority to reduce the amount without Council vote. Mayor Lund said by the generosity of the Council, Mr. Dahl will not have to pay the $165,000 that is due. He said the closing would not occur without an agreement. Mr. Dahl replied that is the common-sense thing to do, but he still understood that there was not going to be a street assessment due to this street improvement project. Mr. Wysopal asked what capacity is Mr. Tigue representing Mr. Dahl. Mr. Tigue replied that he is his attorney. Mayor Lund asked if he has a license to be an attorney. th Mr. Dahl replied that he has a license until the 30 and will lose his license as a result of arithmetic errors. MOTION by Councilmember Varichak to adopt Resolution No. 2017-41, Resolution Approving and Ratifying the Escrow Agreement for Parcel No. 12-30-24-21-0002, Amending the Deferred Assessment Placed on Parcel Id. No. 12-30-24-21-0002, Under the 1986-1 Street Improvement Project and Identifying the Sum Owed as $44,080.59, andDirecting City Clerk to Effectuate Collection of Deferred Assessment from Escrow Funds with the Escrow Agent. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 5.Informal Status Reports Jim Kosluchar , Public Works Director, stated there is a Community Water Meeting tomorrow night at the Legacy Room Anoka Ramsey Community College put on by the League of Women Voters to discuss Governor Dayton’s request to improve water quality by 25% by 2025. Also, a memo went out about the West Moore Lake Drive trail project onsite meeting. Fifteen residents talked about the layout and understood the value of reducing the speed but did not like the narrower lane widths. A feasibility report will be produced later this year. Mr. Wysopal announced new employees and retirements. Councilmember Bolkcom said on September 9 from 10 a.m. to 4 p.m. Banfill-Locke Center will be holding Art at Rice Creek. There will be art, music, food, and projects for kids and adults. FRIDLEY CITY COUNCIL MEETING OF AUGUST 28, 2017 PAGE 11 Mayor Lund said Fridley ‘49er Days needs support from the community and we are looking to reorganize. Volunteers are needed to fill Board positions. 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 8:36 P.M. Respectfully submitted, Krista Peterson Scott J. Lund Recording Secretary Mayor