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06/17/1991 - 00006087� ' 1 THE MINUTES OF THE REGIILAR MEETING OF THE FRIDLEY CITY COUNCIL OF JUNE 17, 1991 The Regular Meeting of the Fridley City Council was called to order at 7:40 p.m. by Mayor Nee. PLEDGE OF ALLEGIANCE: Mayor Nee led the Councilmembe�s and audience in the Pledge of Allegiance. ROLL CALL: MEMBERS PRESENT: MEMBERS AB5ENT: Mayor Nee, Councilwoman Jorgenson, Councilman Billings, Councilman Schneider and Councilman Fitzpatrick None PRESENTATION OF PROCLAMATIONS: GORDON SANGSTER DAY - JUNE 18. 1991: Mayor Nee read and issued a proclamation proclaiming June 18, 1991 as Gordon Sangster Day in the City. He urged residents to join together in expressing their appreciation for Mr. Sangster's significan� and diverse contributions to the Fridley School District and community. Mayor Nee stated that this proclamation will be presented to Mr. Sangster at a recognition dinner on June 18, 1991. NATIONAL NIGHT OUT - AUGUST 6. 1991: Mayor Nee read and issued a proclamation proclaiming August 6, 1991 as National Night out and called upon all citizens to join the Fridley Police Department and participate in the 8th Annual National Night Out by having neighborhood block parties. Mayor Nee presented this proclamation to Connie Bauman, Crime Prevention Specialist, and to Marilou and Byron Johnson, Block Captains. Ms. Bauman thanked the Mayor and Councilmembers for the proclamation. APPROVAL OF MINUTES: COUNCIL MEETING. JUNE 3. 1991: MOTION by Councilman Schneider to approve the minutes as presented. Seconded by Councilwoman Jorgenson. IIpon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. FRIDLEY CITY COUNCIL MEETING OF JIINE 17. 1991 PAGE 2 � ADQPTION OF AGENDA: Mayor Nee requested the following items be added to the agenda: (14) Reconsider Special Use Permit, SP #89-08 at 7570 Highway 65 N.E. and (15) Set Public Hearing on the Establishment of a Tax Increment Financing District. MOTION by Councilman Schneider to adopt the agenda with the above two additions. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. OPEN FORUM, VISITORS: GRACE EVANGELICAL FREE CHURCH RE: 73Rp AVENUE PROJECT: Mr. Michael Happ, Trustee of Grace Evangelical Free Church, addressed the Council regarding their concerns about the 73rd Avenue improvement project. He stated that while this improvement is under construction, he would like to propose that an entrance be cut through the parkway on the west side of the church to allow access into their parking lot and away from neighboring residences, Mr. Happ felt that this was a safety concern due to the number of � vehicles going in and out of the church property. He stated that the church is not only used on 5unday but during the week for day care and other activities. He stated the concern is that there will be cars backed up waiting to exit. Mr. Happ submitted a letter voicing the church's concerns for shortening the frontage road entrance and asked that consideration be given to making an entrance off the parkway in line with the church's west entrance. MOTION by Councilwoman Jorgenson to receive this letter dated June 17, 1991. Seconded by Councilman Schneider. Mr. Flora, Public Works Director, stated that this issue was discussed with the representatives of the church a year aqo and again this past week. He stated that he would like to review the request to determine what consideration can be given. Councilwoman Jorgenson stated that one of her concerns was about employees from the businesses on 73rd Avenue taking shortcuts through the residential neighborhoods. She stated that this was one of the reasons for narrowing the median, to prohibit these vehicles from cutting through residential areas. Mr. Happ stated that he would agree, but their concern is that � there will be traffic backed up on 73rd Avenue because of the constraint of that intersection. FRIDLEY CITY COUNCIL MEETING OF JQNE 1T, 1991 PAGE 3 ' Councilwoman Jorgenson stated that a median cut across the parkway at Station 27 on the plans will be reviewed to allow access into the west entrance of the church's lot. Mayor Nee stated that Council does not usually act on reque5ts submitted under the open forum seqment in order to allow an opportunity for review and report by the City staff. UPON A VOICE VOTE TAKEN ON THE ABOVE MOTION, all voted aye, and Mayor Nee declared the motion carried unanimously. PUBLIC HEARINGS• 1. PUBLIC HEARING ON REZONING. ZOA #89-04. BY ASHLAND OIL COMPANY. TO REZONE LOT 4, BIACR 6, CITY VIEW ADDITION, FROM R-2 TO C-2. GENERALLY LOCATED AT 5701 UNIVERSITY AVENUE N.E.: MOTION by Councilman Billings ta reopen this public hearing which began on November 13, 1989. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously and the public hearing reopened at 7:55 p.m. Ms. Dacy, Community Development Director, stated that this request is ta rezone a vacant strip of land approximately 40 by 140 feet ' adjacent to an existing vacant home from R-2 to C-2. She stated that this rezoning was postponed from the November 13, 1989 City Council meeting in order to receive more information about soil tests taken on the property. Ms. Dacy stated that the property is a double frontage lot with 57th Place along the north and 57th Avenue along the south. Ashland Oil Company, who owns Rapid Oil, is proposing a new facility. She stated that at the time of the rezoning request the HRA was considering this parcel for potential redevelopment, the LRT corridor was being discussed, and both issues were pertinent at that time. She stated that this particular site is not being considered for a park and ride for the LRT system. Ms. Dacy stated that the Planning Commission recommended approval of this rezoning with three stipulations, which she outlined. She stated that approval of the rezoning is conflitioned upon compliance with the stipulation of Rapid oil's special use permit, which states that the site must be cleaned according to MPCA standards prior to issuance of a building permit. She stated that a special use permit is necessary in a C-2 zoning district to construct an oil changing facility. Ms. Dacy stated that soil tests have been completed for the petitioner by Delta Enqineering. � FRIDLEY CITY COUNCIL MEETING OF JIINE 17. 1991 PAGE 4 ' Councilman Billinqs stated that one of the reasons this item was tabled was to determine the extent of the contamination and what actions were necessary to remove the contaminants. Ms. Dacy stated that the stipulations on cleaning the site are contained in the special use permit request. She stated that there was ground water and soil contamination, that a pump system would be used to remove the contaminated ground water, and that contaminated soils would be treated on the site. She stated that Ashland Oil is following through with the appropriate permits from the MPCA, MWCC and the DNR. Mr. Jerry Brill stated that he is an attorney representing Ashland Oil, as Mr. Lemley could not attend the meeting this evening due to a prior commitment in California. He stated that Ashland Oil has a plan designed by Delta Consultants to remove contaminants from the site and that this was approved by the MPCA on September 6, 1990. He stated that Ashland oil recognizes its responsibility to remove these contaminants and that this would begin when the new facility is constructed. Mr. Brill stated that the new facility would be a considerable upgrade to the site and that the rezoning and special use permit is needed in order to proceed. He stated that as far as he knows , there is no plan to take this site for the LRT system. Mayor Nee questioned what would be done with the adjacent vacant single family home. Ms. Dacy stated that, at this time, the plan is only to redevelop the Rapid oil facility. Mr. Brill stated that he did not know if Ashland oil had any plans for the single family home but may attempt to lease or sell it. Mr. Flora, Public Works Director, stated that the plan is to aerate the soil, to pump and treat the water, and to dispose of it in the sanitary sewer system. No other persons in the audience spoke regarding this proposed rezoning. MOTION by Councilman Billings to close the public hearing. Seconded by Councilman Fitzpatrick. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously and the public hearing closed at 8:15 p.m. � FRIDLEY CITY COUNCIL MEETING OF JIINE 17, 1991 PAGE 5 ' 2. PUBLIC HEARING ON VACATION REOUEST, SAV #91-02, BY JAMES AND LINDA PETERSON AND TIMOTHY AND DONNETT MILLER TO VACATE THE EAST 110 X 40 FEET OF DOVER STREET AS MEASURED FROM THE EAST RIGHT-OF-WAY LINE OF BROAD AVENUE, SUBJECT TO AN EASEMENT FOR UTILITY PURPOSES OVER THE SOUTHERLY 20 FEET OF THE PORTION OF DOVER STREET TO BE VACATED AND A WALKWAY EASEMENT OVER THE NORTAERLY 10 FEET �F THE SOUTHERLY 2� FEET OF THE PORTION OF DOVER STREET TO BE VACATED, GENERALLY LOCATED SOUTH OF 591 DOVER STREET AND NORTH OF 7995 BROAD AVENIIE: MOTION by Councilman Fitzpatrick to waive the reading of the public hearing notice and open the public hearing. Seconded by Councilwoman Jorgenson. IIpon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously and the public hearing opened at 8:15 p.m. Ms. Dacy, Community Development Director, stated that the patitioners are proposinq to vacate the east 110 feet o£ Dover Street, as measured from the east right-of-way line of Broad Avenue and which lies between the two petitioners' properties. She stated that the portion of Dover Street east of Broad Avenue is currently a paper right-of-way and the street is unimproved. Ms. Dacy stated that Mr. Peterson lives in the home to the south � of the right-of-way and that the purpose of the vacation is to add property to the Peterson and Miller property, as Mr. Peterson wishes to construct a garage. She stated that the petitioner has reserved a 20 foot utility easement and a 10 foot walkway easement. She stated that there is a resident who lives on Dover Street who wants a walkway easement retained. Ms. Dacy stated that since the Planninq Commission meeting, staff has discussed this walkway easement with the City Attorney, and it is preferable that the walkway easement not be a stipulation of approval of this vacation. She stated that this walkway easement would call attention to a specific strip of land that would appear to be owned and maintained by the City and would encourage pedestrian traffic. She stated that because of the vegetation and slope of the hill, it is staff's position that pedestrian traffic should not be encouraged in this area. She stated staff is recommending that the stipulations for utility and walkway easements be deleted. She stated that the stipulation for a hard sur£ace driveway by August 1, 1992 should remain. Mr. Peterson, 7995 Broad Avenue, stated that he is one of the co- petitioners of this vacation request. He stated that this strip of land proposed to be vacated is partial gravel and used as a parking lot. He stated that his home has a single car garage, he needs space to keep his vehicles, and that the only direction he � can expand is to the north. He stated that if the vacation is approved, he would regrade the area, sod it, and try to stabilize FRIDLEY CITY COIINCIL MEETING OF JUNE 17, 1991 PAGE 6 � his portion of the hillside. He stated that this vacation would also eliminate the off-street parking. Mr. Peterson stated that the utility easement is for the benefit of the City, and the walkway easement came about as a result of the Planning Commission meeting. He stated that none of the residents were disappointed by the idea of not having a through street; however, several residents expressed am interest in having a means of travel to the river. He stated that there are several ways to access the river; however, this is probably the worst due to the terrain. Mr. Scott Painter, 541 Dover Street, stated that he and his wife were the objecting parties. He stated that they were concerned about losing the legal right-of-way as they use this access to go to the river. He stated that it is easier to go in this direction than on East River Road. He stated that he understands the City Attorney may have some legal concerns, but the path is well used, and he felt it would continue to be used. Mr. Herrick, City Attorney, stated that this is not a major concern, but felt it should be pointed out to Council. He stated that Mr. Painter just stated that the path has been used for a period of time and, while it is not designated as a walkway, it is � designated as a roadway, and it is conceivable if someone were to get hurt that they may file a claim. He felt that the liability would be covered by the City's insurance, but the risk is something Council might wish to weigh. Councilman Billings questioned the legal description for the Minnegasco easement. Ms. Dacy stated that this easement is defined in the vacation ordinance which is Item 5 on the Council's agenda. No other persons in the audience spoke regarding this proposed vacation. MOTION by Councilman Fitzpatrick to close the public hearing. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously and the public hearing closed at 8:43 p.m. OLD BUSINESS• 3. ORDINANCE N0. 971 RECODIFYING THE FRIDLEY CITY CODE, CHAPTER 205. ENTITLED "ZONING." BY DELETING SECTION 205.09.05.D.(7) AND SECTION 205.09.07.F AND RENUMBERING THE REMAINING SECTIONS CONSECUTIVELY: ' MOTION by Councilman Schneider to wauve the reading and adopt Ordinance No. 971 on the second reading and order publication. , � � FRIDLEY CITY COIINCIL MEETING OF JUNE 17, 1991 PAGE 7 Seconded by Councilman Billings. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. ORDINANCE NO. 972 RECODIFYING TH� FRIDLEY CITY CODE, CHAPTER 205, ENTITLED "ZONING" BY AMENDING SECTION 205.04, BY ADDING NEW SECTION 205.04.09 "ABOVE GROUND FUEL STORAGE (AGFSL TANKS": MOTION by Councilman Fitzpatrick Ordinance No. 972 on the second Seconded by Councilman Schneider. aye, Mayor Nee declared the motion NEW BUSINESS• to waive the reading and adopt reading and order publication. Upon a voice vote, all voting carried unanimously. 5. FIRST READING OF AN ORDINANCE UNDER SECTION 12.07 OF THE CITY CHARTER TO VACATE STREETS AND ALLEYS AND TO AMEND APPENDIX C OF THE CITY CODE: M�TION by Councilman Billings to waive the reading and approve the ordinance on first reading, with the stipulation that the petitioners, Timothy and Donnett Miller, shall provide a hard surface driveway by August 1, 1992. Seconded by Councilwoman Jorgenson. Mayor Nee stated that he would like to see a walkway easement provided. MOTION by Councilman Billings to add the following paragraph to this ordinance, between paragraphs one and two, to read as follows: "Subject to an easement for walkway purposes over the northerly 10 feet of the southerly 20 feet of the portion of Dover Street to be vacated." Seconded by Councilman Fitzpatrick. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. UPON A VOICE VOTE TAKEN ON THE MAIN MOTION, all voted aye, and Mayor Nee declared the motion carried unanimously. 6. RECEIVE ITEMS FROM THE APPEALS COMMISSION MEETING OF MAY 28. 1991• A. VARIANCE REQUEST, VAR #91-10, BY MICHAEL KLISI�IITH. TO INCREASE THE HEIGHT OF A FENCE IN THE FRONT YARD FROM 4 FEET TO 7 FEET (A 4 FOOT FENCE ON TOP OF A 3 FOOT BERM1, ON LOTS 7. 8, 9 AND 10, BLOCK 3, SPRING BROOK PARK, THE SAME BEING 7905 EAST RIVER ROAD: MOTION by Councilman Fitzpatrick to concur with the recommendation of the Appeals Commission and grant Variance Request, VAR #91-10. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. FRIDLEY CITY COIINCIL MEETING OF JUNE 17, 1991 PAGE 8 � B. VARIANCE REOUEST. VAR #91-12. BY ROBERT AMBORN. TO REDUCE THE REOUIRED FRONT YARD SETBACK FROM 35 FEET TO 14 FEET AND TO INCREASE THE MAXIMUM SQUARE FOOTAGE OF AN ACCESSORY BUILDING FROM 1.000 TO 1.270 SOUARE FEET, ON LOT 2, BLOCK 4, CITY VIEW ADDITION. THE SAME BEING 405 - 57TH PLACE N.E.: Ms. Dacy, Community Development Director, stated that this variance was requested in order to allow the petitioner to construct additional garage space to park his recreational vehicle on a hard surface to meet City Code requirements. She stated that the petitioner currently is storing his large recreational vehicle outside, that he was required to store this vehicle on a hard surface driveway, and that he has chosen to enclose it by constructing additional garage space. Ms. Dacy stated that two variances are necessary as double frontage lots have to meet a 35 foot setback from both the rear and front right-o£-way and that a variance is also needed to increase the size of an accessory building. She stated that the Appeals Commission recommended denial of the variances as they felt the garage was too large and that the issue of the size of an accessory building should be reviewed. Ms. Dacy stated that another alternative is to vacate the right- ' of-way to the west of the property; however, the petitioner is concerned with the location of the gas main and whether he would have adequate area to expand. She stated that if Council approves the variances, staff is recommending a hard surface driveway to the proposed addition by September 1, 1992, for the petitioner to sign and record an agreement against the property which would allow him access to the property in perpetuity, and which releases the City from liability or incurring any costs should the improvements be disturbed due to maintenance of utilities within the right-of-way. Ms. Dacy stated that one other alternative is a curb cut from 57-1/2 Avenue, but this is not ideal since there is a steep hill there. Mr. Amborn, the petitioner, stated that the purpose of constructing the garage was to meet the City Code requirements and to also correct the water problems in the back of his garage. He stated that by expanding into the right-of-way it would interfere with the gas main or be very close to it. xe stated that the garage would be on the side and not in view from either street which enhances the looks from both north and south. Mr. Amborn stated that the garage is a little high to accommodate the recreational vehicle, however, it would be into the hillside by 3-1/2 feet and provide a standarci view from the north side. � Councilwoman Jorgenson asked Mr. Amborn if he considered having a double qarage in front of the single garaqe and usinq the current driveway access. FRIDLEY CITY COUNCIL MEETING OF JUNE 17, 1991 PAGE 9 ' Mr. Amborn stated that he has a patio at this location and has a drainage problem. Ms. Dacy stated that there is a limit on the height of the garage which she believed was fourteen feet. Councilman Billings stated that the petitioner�s proposal of expanding on the south side takes advantage of the four foot change in elevation of the property so from the north property line, the actual visible structure that would be seen is about ten feet high. on the south side, it is further back on the property. Mr. Amborn stated that the adjacent properties are a lot hiqher than fourteen feet. He stated that some split level homes are at least twenty feet in height. Councilman Billings stated that, all things considered, he felt this was the most logical place on the lot to construct the garage. He stated that a smaller structure could be constructed, but this would not allow him to store the recreational vehicle inside. Councilwoman Jorgenson stated she is concerned that if the street easement is vacated would Mr. Amborn have the necessary turning radius. ' Councilman Billings stated that he would prefer to table this item to July 1, 1991 and have staff review the height issue. MoTION by Councilman Billings to table this item to July 1, 1991. 5econded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. C. VARIANCE REOUEST, VAR #91-13, BY LEONARD VANASSE. TO INCREASE THE MAXIMUM SOUARE FOOTAGE OF A SIGN FROM 80 SOUARE FEET TO 101 SOUARE FEET, TO ALLOW THE CONSTRUCTION OF A FREE-STANDING PYLON SIGN ON LOT 3. BLOCK 1. MAR-LEN ADDITION, THE SAME BEING 57 - 81ST AVENUE N.E.: MoTION by Councilman Billings to concur with the recommendation of the Appeals Commission and grant Variance Request, VAR #91-13, with the stipulation that the subdivision process to split a portion of the parcel for Crouse Cartage Company shall be completed within two years; and if not, the signage shall be reduced to 80 square feet. Seconded by Councilwoman Jorgenson. Mayor Nee felt that it would not be in the City's best interests to split this property and that the parcel should probably be kept in tact. � Councilman Billings stated that if the parcel was not split in two years, ANR would be required to reduce the size of their sign. He � FRIDLEY CITY COUNCIL MEETING OF JUNE 17. 1991 PAGE 10 stated that he would be comfortable with authorizing the variance for a two-year period. Ms. Dacy, Community Development Director, stated that this is an unusual situation because what once was a one-owner building is now becoming a multi-tenant building. She stated that because ANR is reducing their facility they may lease more docks to other businesses. MOTION by Councilman Billings to amend the above motion by deleting the stipulation and substituting the following stipulation: "This variance shall apply until July 1, 1993 and, at such time, the variance shall be reviewed by the City Council and if not renewed, shall expire." Seconded by Councilwoman Jorgenson. upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. UPON A VOICE VOTE TAKEN ON THE MAIN MOTION, Councilman Sillings, Councilwoman Jorgenson, Councilman Fitzpatrick and Mayor Nee voted in favor of the motion. Councilman Schneider voted against the motion. Mayor Nee declared the motion carried by a 4 to 1 vote. 7. APPROVAL OF CHANGE ORDER NO. 1 FOR PHASE II - 3 MG CONCRETE RESERVOIR REPAIR PROJECT NO. 200: ' MOTION by Councilman Schneider to authorize Change Order No. 1 with Western Waterproofing, Inc. for Phase II of the 3 MG Concrete Reservoir Repair Project No. 200 for a deduction of $225.40. Seconded by Councilman Fitzpatrick. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. ' 8. RECEIVE BIDS AND AWARD CONTRACT FOR COMPUTER HARDWARE, SOFTWARE AND SERVICES: MOTION by Councilman Schneider to receive the following bids for Computer Hardware/Software: Company Computoservice, Inc. Infocel Modern Computer Systems Business Records Corporation Therefore Systems, Inc. Wang Laboratories, Inc. Systems Consultants, Inc. Total Bid $224,623 $248,124 $252,313 $264,580 $278,602 $314,609 $354,660 FRIDLEY CITY COONCIL MEETING OF JIINE 17 1491 PAGE 11 � Company Total Bid Pentamation HTE, Inc. $435,434 $484,125 Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. Mr. Pribyl, Finance Director, stated that HTE, Inc, was the lowest, responsible bidder based on City staff's in-depth review. He requested that Council allow staff to negotiate a contract with HTE not to exceed an acquisition cost of $271,640. Councilman Schneider stated that £rom the bids received, a short list of four bidders was developed. He stated that in the electronics industry things change very rapidly. He stated that from the time the bidding process began, many bidders stated that they could change the configuration and reduce the cost. He questioned if there was a problem with having those companies on the short list modify their bids without looking at all the bidders modifying their bids. Mr. Aerrick, City Attorney, stated that in reviewing this situation 1 it was quite complicated. He stated that what is included in this package is hardware, software, and maintenance. He stated that what the City is really looking for is a functioning system and not any one of those elements. He stated that Council has a degree of latitude or flexibility in determining which of the bidders is the lowest, responsible bidder taking into consideration all of those elements. Mr. Herrick stated that in discussing this with Mr. Pribyl, it is his understanding that five companies did not make the short list because they did not meet something in the specifications. He stated that a very elementary rule of bidding is that if you do not meet the specifications the bid cannot be accepted. Mr. Herrick stated the four companies that made the short list appeared to meet the speci£ications in terms o£ what was submitted at the time of the bidding. He stated that it is his understanding that the City had these four companies provide a demonstration and, based on the demonstration information, it was determined that two of those companies were deficient for one reason or another, leaving two companies to be considered. He stated during that period of time, things changed in the electronics industry and the two companies that met the specifications indicated that they would be able to supply the same harclware for substantially less than they had bid. He stated that he had questioned if all four � finalists were given the same opportunity to adjust their price and understands this was the case. , � 1 FRIDLEY CITY COUNCIL MEETING OF JUNE 17. 1941 PAGE 12 Mr. Herrick stated that Mr. Pribyl discussed this situation with the State Auditor's Office and, based on the circumstances and information contained in his memo, it is his opinion that if Council makes the finding that HTE is the lowest, responsible bidder for the hardware, software, and services it would supply, he would be comfortable with the process. He stated that his opinion is based on the fact that all four companies on the short list had the same opportunity as HTE. He stated that he believed HTE and the second position vendor submitted raodified prices. Mr. Pribyl stated that Mr. Herrick's comment was correct. He stated that in the final process the selection was narrowed down to three companies, and two of the three used the same type of hardware. Mr. Pribyl stated that he would like the authorization to negotiate a contract with HTE and have the contract reviewed by the City Attorney. He stated that i£ they cannot negotiate a contract, staff would come back to Council for further direction. MOTION by Counoilman Schneider to find HTE, Inc. the lowest, responsible bidder and allow staff to enter into a contract with HTE subject to appropriate contract terms and review by the City Attorney at a cost not to exceed $271,640. Further, if staff cannot successfully negotiate a contract with HTE, that this item will come back to Council. Seconded by Councilwoman Jorgenson. Councilman Billings stated he is concerned that another bidder is considering the possibility of litigation and wondered if the Council should reject all the bids and direct staff to negotiate a contract on a professional service basis. He stated that if this goes into litigation there would be costs involved whether or not the City would be successful or unsuccessful. Mr. Pribyl stated that he discussed this issue with the City Attorney and State Auditor's Office and felt that �he rationale used to eliminate a number of vendors can be supported. He stated that if the bids are rejected, the City could enter the market on a professional service basis, but he felt comfortable that specifications were not met in the bids that were not considered. Mr. Herricic stated that there are some pluses and minuses with either rejecting all the bids or negotiating a contract on a professional service basis. He stated that if a contract was negotiated on a professional service basis, it could also be open to litigation. He stated that if Council proceeds as suggested by staff, and if there is litigation, he may come back to Council and suggest a professional service contract. He stated that they are not anticipating any litigation. Mayor Nee stated that the suggestion to negotiate a contract is far removed from the bid. He stated that he does not have a problem FRIDLEY CITY COUNCIL MEETING OF JUNE 17. 1991 PAGE 13 ' with that other than it appears they are negotiating with the highest bidder. Mr. Pribyl stated that he was uncomfortable with the entire bidding process. He stated that in the analysis and demonstration they can specifically state reasons why the vendors did not qualify and adhere to the specifications. Mr. Herrick stated that this certainly is not the average bidding situation in the sense it is different than what is normally done. He stated that the difference in price between the original bid and what is offered is in excess of $200,000, and he does not think anyone would object to saving over $200,000. Mayor Nee stated that it depends on how the savings was reached. He stated that it is a matter of ethics that one company's bid is not used to influence another company. Mr. Herrick stated he has been assured that this has not happened. He stated that Council, however, could proceed along the lines of Councilman Billings' suggestion to award a professional service contract. Mr. Pribyl stated that in looking at longevity on the system part ' of the responsibility is to make sure the City is not put into the situation as it exists today. He stated that the process of evaluating the vendors is difficult but felt it was defensible. UPON A VDICE VOTE TAKEN ON THE ABOVE MOTION, all voted aye, and Mayor Nee declared the motion carried unanimously. 9. RESOLUTION NO. 50-1991 REOUESTING THE CORPS OF ENGINEERS TO CONDUCT A STUDY FOR THE FEASIBILITY OF A FLOOD CONTROL PROJECT ON THE MISSISSIPPI RIVER: MOTION by Councilman Fitzpatrick to adopt Resolution No. 50-1991. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. 10. INFORMAL STATUS REPORTS: Mr. Burns, City Manager, stated that there were no informal status reports. 11. CLAIMS: MOTION by Councilman Schneider to authorize payment of Claims No. 37901 through 38130. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried � unanimously. � � L.� FRIDLEY CITY COUNCIL MEETING OF JUNE 17, 1991 PAGE 14 12. LICENSES• MOTION by Councilman Fitzpatrick to approve the licenses as submitted and as on £ile in the License Clerk's Office. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. 13. ESTIMATES: MOTION by Councilman Schneider to approve the estimates as submitted: A & K Construction, Inc. 9D38 11Dth Street North Stillwater, MN 55082 Well No. 12 & Booster Station Improvement Project Y3o. 216 FINAL ESTIMATE . . . . . . . . Newquist & Ekstrum, Chartered 301 Fridley Plaza Office Building 6401 University Avenue N.E. Fridley, MN 55432 Services Rendered as City Prosecuting Attorney for the Month of May, 1991. .. Chemlawn Services Corp. 1156 East Highway 36 Maplewood, MN 55109 Corridor Maintenance Project No. 217 Estimate No. 2 . . . . . . . . . . . . HNTB 6700 France Avenue South Minneapolis, MN 55435 $12,826.00 $ 9,105.75 . . $ 3,686.98 Inspection of the 1.5 MG Elevated Water Reservoir Project No. 202 Partial Estimate . . . . . . . . . . . . . . $ 1,842.85 W. B. Miller, Inc. 16765 Nutria Street Ramsey, MN 55303 Street Improvement Project No. ST. 1991 - 1& 2 Estimate No. 1 . . . . . . . . . . . . . . . $ 6,899.50 � � � FRIDLEY CITY COUNCIL MEETING OF JUNE 17, 1991 PAGE 15 Pitt-Des Moines, Inc. 1015 Tuttle Street Des Moines, IA 50309 Construction of the 1.5 MG Elevated Water Reservoir Project No. 201 Partial Estimate . . . . . . . . . . . . $77,235.43 Seconded by Councilman Fitzpatrick. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. 14. RECONSIDERATION OF APPROVAL OF SPECIAL USE PERMIT SP 89-OS 7570 HIGHWAY 65 N.E. (APPROVED AT JUNE 3. 1991 COUNCIL MEETINGI• Councilman Schneider stated new information has come to the Council's attention which could have a significant influence on the special use permit. MOTION by Councilman Schneider to reconsider approval of Special Use Permit, SP #89-08. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. MOTION by Councilman Schneider to table discussion on Special Use Permit, SP #89-08 to the July 1, 1991 Council meeting. Seconded by Councilman Fitzpatrick. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. 15. SET PUBLIC HEARING FOR THE ESTABLISHMENT OF A TAX INCREMENT FINANCING DISTRICT: MOTION by Councilman Schneider to set the public hearing for the establishment of a tax increment financing district for July 1, 1991. Seconded by Councilman Fitzpatrick. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. ADJOURNMENT: MOTION by Councilman Billings to adjourn the meeting. Seconded by Councilman Schneider. Upon a voice vote, all votinq aye, Mayor Nee declared the motion carried unanimously and the Regular Meeting of the Fridley City Council of June 17, 1991 adjourned at 9:55 p.m. Respectfully submitted, Carole Haddad Secretary to the City Council Approved: William J. Nee Mayor