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04/20/1998 - 00000111THE MINUTES OF THE REGULAR MEETING OF THE FRIDLEY CITY COUNCIL OF APRIL 20, 1998 The Regular Meeting of the Fridley City Council was called to order by Mayor Jorgenson at 7:34 p.m. 1. BOARD OF REVIEW MEETING: Mayor Jorgenson explained that the 1998 Board of Review allows residents the opportunity to speak to Council in regard to the proposed value of their home for taxes payable in 1999. Mr. Hervin, Assessor, stated that the purpose of this meeting is to review the 1998 (payable in 1999) market value that has been placed on properties within the City of Fridley. The City of Fridley is required to complete the Board of Review within twenty days of commencement. A second meeting, if necessary, is scheduled for May 4, 1998. The Board has the options of leaving values as they are, increasing the value or decreasing the value, on an individual basis. Mr. Hervin provided information in regard to the appeals process should residents wish to challenge the values placed on their property. Mr. Hervin noted that there were 297 home sales registered in the City of Fridley last year, with an average sale price of $105,800. In the previous year, the average sale price was $100,400. This indicates that home values have increased an average of four to five percent over the previous year. Councilmember Schneider stated that the purpose of establishing an assessed value is to put a value on properties which is close to the price that the property would likely sell for if it were sold. Mr. Hervin stated that that was correct. Assessment values generally run 94 to 95 percent of the market value of a property. Surendra Chaudharv, 5640 N. Danube Road: Mr. Chaudhary distributed information to the Council which he had prepared with regard to properties in his immediate area, and a copy of an official appraisal he had performed on his property in 1994. Mr. Chaudhary noted that in 1990, the market value of his property was $157,000. Over a period of eight years, the market value has increased by $35,000. In comparison with other homes in the area, his home is the most expensive on the block and has the highest taxes. He noted that one home on the block recently sold for $164,000 (originally listed for $174,000), and has a 1998 assessed market value of $149,000. He proceeded to offer comparisons of other homes sold. He stated that he sees a disparity with how the market values have been calculated. CITY COUNCIL MEETING OF APRIL 20, 1998 PAGE 2 Councilmember Schneider noted that in all examples the market value has been less than the actual sale price. Mr. Chaudhary stated that this is not the case for his property. He referred to the 1994 appraisal of his property which established the value at $174,556. In his area, the houses are not appreciating in price. He feels he would have a difficult time selling his home for $174,000. Councilmember Schneider noted that according to the Assessor, property values in Fridley have gone up between three and five percent per year. Therefore, over the past four years, it would be reasonable to expect his property to increase in value between ten and twenty percent. To add ten percent to the value would bring the market value to $191,400 today. The Appraiser is recommending the market value to be $188,200. Mr. Chaudhary stated that with the continual increase, he will be forced to move. He is living on a retired salary and cannot afford the taxes. He has not appeared before the Board over the past twenty years, but he is compelled to do so now. The value was decreased to $188,000 only because he called. If he had not, the value would have been set at $192,000. Councilmember Schneider asked why there was a$13,000 increase in value in 1992. Mr. Hervin was unable to provide an answer, based on the information on hand, but noted that the significant increase may have been to bring the property up to the appropriate value. Mayor Jorgenson noted that the appraisal of the property used comparables of homes in the City of New Brighton. She noted that, generally, homes are compared with other properties in the community. Mr. Chaudhary explained that the New Brighton homes were used as comparables, as no homes were recently sold in his immediate area at the time the appraisal was performed. Mr. Hervin explained that assuming a four percent market value increase per year, Mr. Chaudhary's property can expect to have increased in value by $25,000 to $30,000 from 1994. This would put the value at $199,000. Councilmember Schneider explained that the City is bound by law to appraise the property for what they believe it would sell for. The data Mr. Chaudhary provided supports this. If he believes residents on fixed incomes should be given a break on their taxes, he must pursue that as a separate issue. The only disparity, if one e�sts, is that the properties in the City tend to be undervalued. Mayor 7orgenson explained that her property has increased in value over the past twenty years at an average of $2,900 per year. The appraisal Mr. Chaudhary submitted was done in 1994. If he wished to have a quasi appraisal done to show the 1998 market value and bring it back to Council at the May 4, 1998 meeting, Council would be willing to review the information. Council has the option to approve the value as it has been set, reduce the market value or increase the market value. However, any adjustments in market value must be justified. CITY COUNCIL MEETING OF APRIL 20, 1998 PAGE 3 Mr. Chaudhary indicated his desire to obtain an updated appraisal of his property to substantiate that the value placed by the Assessor on his property is too high, and bring the information back to Council for consideration at the May 4, 1998 meeting. MOTION by Councilmember Schneider to table consideration of this item and continue discussion at the meeting of May 4, 1998. Seconded by Councilmember Barnette. Upon a voice vote, all members voting aye, Mayor 7orgenson declared the motion carried unanimously. Councilmember Schneider asked that Mr. Hervin investigate the $13,000 market value increase in 1992 and bring information back to Council at the May 4, 1998 meeting. Mayor Jorgenson asked that a comparison be done of the list of homes sold in the area as well as Mr. Chaudhary's home. MOTION by Councilmember Schneider to continue the Board of Review meeting to May 4, 1998. Seconded by Councilmember Barnette. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously. PLEDGE OF ALLEGIANCE: Mayor Jorgenson led the Council and audience in the Pledge of Allegiance to the Flag. ROLL CALL: MEMBERS PRESENT: Mayor Jorgenson, Councilman Barnette, Councilman Billings, Councilman Schneider and Councilwoman Bolkcom. MENIBERS ABSENT: None PROCLAMATIONS: Daniel and Barbara Fleisher Appreciation Day: Apri124, 1998: Mayor Jorgenson read and issued a proclamation declaring the week of April 24. 1998 as Daniel and Barbara Fleisher Appreciation Day, and acknowledged their many years of devoted community volunteerism in the City of Fridley. Ms. Sue Anne Kirkham was present to accept this proclamation on behalf of Mr. and Mrs. Fleisher. The proclamation will be presented to them at a Church Reception held in their honor. Loyalty Day: May 2, 1998: Mayor Jorgenson read and issued a proclamation declaring May 2, 1998 as Loyalty Day in the City of Fridley. She urged residents to take full advantage of this special occasion which is celebrated as an incentive for every American to re-affirm his or her love of the CITY COUNCIL MEETING OF APRIL 20, 1998 PAGE 4 flag and the country, by displaying the flag of the United States. This event will be co- sponsored by the Veterans of Foreign Wars of the United States. Mr. Stan Kowalski, representing the Veterans of Foreign War, was present to accept this proclamation. He noted that the VFW will be hosting a parade on May 2, 1998, ending at the VFW Post where there will be speakers and celebrations. He encouraged Council's participation in this event. Mr. Kowalski also offered to provide the Municipal Center with a POW/MIA flag to fly below the United States of America flag. Mayor Jorgenson noted that the City does have a POW/MIA flag at Moore Lake, and that they could accommodate another one at the Municipal Center. APPROVAL OF MINUTES: COLTNCIL MEETING - Apri16, 1998: MOTION by Councilman Barnette to approve the minutes of the April 6, 1998 City Council Meeting as presented in writing. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor 7orgenson declared the motion carried unanimously. APPROVAL OF PROPOSED CONSENT AGENDA: NEW BUSINESS: 2. RECEIVE THE MINUTES OF THE PLANNING COMMISSION MEETING OF APRIL 1, 1998: RECEIVED THE MINUTES OF THE PLANNING COMMISSION MEETING OF APRIL 1, 1998. 3. SPECIAL USE PERMIT, SP #98-05, BY RON STELTER OF FRIENDLY CHEVROLET, TO ALLOW AN EXPANSION OF 21,780 SQUARE FEET TO A BUILDING USED FOR AUTOMOBILE SALES AND SERVICES, GENERALLY LOCATED AT 7501 HIGHWAY 65 N.E. (Ward 2): Mr. Burns, City Manager, stated that this permit will allow the construction of a 21,780 square foot addition to the east of the e�sting automobile sales and service building. It will be used to expand the e�sting service department. The City Code requires special use permits for selling and/or displaying motor vehicles, repair garages and car washes. Staff recommended and the Planning Commission concurred that the permit be issued with nine stipulations. Staff is recommending Council approval. APPROVED SPECIAL USE PERMIT SP #98-05, WITH THE FOLLOWING STIPULATIONS: (1) NO CARS SHALL BE PARKED IN THE BOULEVARD, CITY COUNCIL MEETING OF APRIL 20, 1998 PAGE 5 ON ANY LANDSCAPED AREAS OR IN THE STREET, (2) THE PETITIONER SHALL PROVIDE CURB AND GUTTER ALONG THE ENTIRE PERIMETER OF THE NEW PARKING AREAS, (3) A LANDSCAPE PLAN FOR THE SITE SHALL BE APPROVED BY THE CITY PRIOR TO ISSUANCE OF A BUILDING PERMIT, (4) THE ENTIRE PARKING AND VEHICLE DISPLAY AREAS SHALL BE PAVED BEFORE THE NEW ADDITION IS OCCUPIED, (5) THE PARKING SPACES SHALL BE STRIPED AT A WIDTH OF TEN FEET, (6) A MINIMUM OF 185 PARKING STALLS SHALL BE DESIGNATED FOR CUSTOMERS AND EMPLOYEES, (7) NO CARS OR OTHER VEHICLES SHALL BE PARKED IN A MANNER SO AS TO IMPEDE THE FREE TRAVEL OF VEHICLES IN AREAS INTENDED AS DRIVE AISLES, (8) TO MAINTAIN A HOMOGENEOUS APPEARANCE, THE EXTERIOR OF THE ADDITION SHALL MATCH THE COLOR OF THE EXISTING BUILDING AND SHALL CONFORM TO THE PLANS FOR DARWIN, LINDAHL ARCHITECTS, P.A. LABELED SHEET NO. A3.1 AND DATED 02/27/98, (9) THE USE OF THE CAR WASH IS ONLY FOR PATRONS OF THE BUSINESS. 4. CONSIDERATION OF A VARIANCE, VAR. #98-08, BY TODD BACHMAN OF HORTCO, LLC, TO ALLOW A FREE-STANDING SIGN TO BE INCREASED FROM THE MAXIMUM SIZE OF 80 SQUARE FEET TO 120 SQUARE FEET, GENERALLY LOCATED AT 8200 UNIVERSITY AVENUE N.E. (WARD 3): Mr. Burns, City Manager, explained that this request is made by Todd Bachman of Hortco, LLC. The variance would allow a 120 square foot free-standing sign for the new Bachman's store at 8200 University Avenue. The variance is consistent with the size of four pylon sign variances that Council has approved since 1992. Staff recommends that Council concur with the recommendation of the Appeals Commission and approve the variance with four stipulations. APPROVED VARIANCE #98-08, WITH THE FOLLOWING STIPULATIONS: (1) THE PETITIONER SHALL RECORD AGAINST THE TITLE OF LOT 3, BLOCK 1, WALTON SECOND ADDITION, A COVENANT WHICH PROHIBITS THE INSTALLATION OF A FREE STANDING SIGN ON SAID LOT, (2) THE SIGN AREA SHALL BE LIMITED TO 120 SQUARE FEET IN SIZE, (3) THE SIGN SHALL MEET HEIGHT AND LOCATION STANDARDS OF SECTION 214.11 OF THE FRIDLEY CITY CODE, (4) THE VARIANCE SHALL REMAIN IN EFFECT UNTIL: (a) THE SIGN IS ALTERED IN ANY WAY, EXCEPT FOR ROUTINE MAINTENANCE AND CHANGE OF MESSAGES, WHICH MAKES THE SIGN LESS IN COMPLIANCE WITH THE REQUIREMENTS OF CHAPTER 214 THAN IT WAS BEFORE THE ALTERATIONS, (b) THE SUPPORTING STRUCTURE OF THE SIGN IS REPLACED OR REMODELED, (c) THE FACE OF THE SIGN IS REPLACED OR REMODELED, (d) THE SIGN BECOMES DII,APIDATED OR DAMAGED AND THE COST OF BRINGING IT INTO COMPLIANCE IS MORE THAN FIFTY PERCENT OF THE VALUE OF SAID SIGN, AT WHICH TIME ALL OF CITY COUNCIL MEETING OF APRIL 20, 1998 PAGE 6 THE SIGN AND ITS STRUCTURE BE REMOVED, (e) NOTWITHSTANDING PARAGRAPH (A) ABOVE, UPON THE CHANGE OF THE NAME OF THE BUSINESS BEING DISPLAYED ON THE SIGN. 5. APPROVE PROPOSAL FROM HOISINGTON KOEGLER GROUP, INC. FOR THE VISION PROCESS OF THE COMPREHENSIVE PLAN AND AUTHORIZE CITY MANAGER TO EXECUTE A CONSULTANT CONTRACT: Mr. Burns, City Manager, stated that Barbara Dacy, Community Development Director, has recommended that the City hire this group to conduct the visioning process associated with the updating of the City's Comprehensive Plan. The contract amount is for $12,850. A minimum of 150 participants will be invited to the two planning sessions. In these meetings, the consultant will work with the participants to define what Fridley is and what it should be over the ne�t two decades. They will also work with participants to develop priorities and to establish a framework for measuring success. Ms. Dacy expects this work to establish the conte�t for the re-writing of the Comprehensive Plan. Staff recommends Council approval. APPROVED PROPOSAL FROM HOISINGTON KOEGLER GROUP, INC. FOR THE VISION PROCESS OF THE COMPREHENSIVE PLAN AND AUTHORIZED THE CITY MANAGER TO EXECUTE A CONSULTANT CONTRACT. 6. APPROVE CHANGE ORDER NO. 1 FOR THE HACKMANN AVENUE STREET IMPROVEMENT PROJECT NO. ST 1998-1 (WARD 3): Mr. Burns explained that the proposed change order adds funding for a sump pump discharge collection line at a cost of $18,300. It also provides for the installation of MnDOT Type V geote�tile fabric to accommodate unexpectedly wet soils and prevent premature degradation of the newly upgraded roadway. The cost for the fabric installation is $12,669. The third segment of the change order is a joint saw and seal program to control the location of surface cracks. The cost for this item is $4,650. Staffrecommends that all three changes be approved at a cost of $35,619, payable to Forest Lake Contractors, Inc. of Forest Lake, Minnesota. APPROVED CHANGE ORDER NO. 1 FOR THE HACKMAN AVENUE STREET IMPROVEMENT PROJECT NO. ST 1998-1. 7. RESOLUTION #27-1998 PROVIDING FOR THE ISSUANCE AND SALE OF THE CITY'S GENERAL OBLIGATION WATER REVENUE REFUNDING BONDS, SERIES 1998A: Mr. Burns stated that the bond size is $1,180,000. The new sale is being done to enable advance refunding of water bonds that were issued in 1991. The new issuance allows the City to take advantage of currently low interest rates and in the process save $124,409.00. CITY COUNCIL MEETING OF APRIL 20, 1998 PAGE 7 The City's bond rating for this new issuance has once again been established by Moody's Investor Service at Aal, a very favorable rating. Bids for the new issue were opened on Monday, April 20, 1998. They were as follows: Bidder Norwest Investment Services, Inc. Dougherty Summit Securities, Inc. Miller, 7ohnson & Kuehn, Inc. Cronin & Company, Incorporated Dain Rauscher Incorporated PaineWebber Incorporated Piper Jaffray Inc. True Interest Rate 4.6433% 4.6719% 4.6782% 4.6803% 4.6902% 4.7184% 4.7458% Staff recommends that the bid be awarded to Norwest Investment Services, Inc., at a true interest rate of 4.6433 percent. ADOPTED RESOLUTION #27-1998 AWARDING THE BID TO NORWEST INVESTMENT SERVICES, INC., AT A TRUE INTEREST RATE OF 4.6433 PERCENT FOR THE SALE OF THE CITY' S GENERAL OBLIGATION WATER REVENUE REFUNDING BONDS, SERIES 1998A. 8. RESOLUTION IN SUPPORT OF AN APPLICATION FOR A MINNESOTA LAWFUL GAMBLING PREMISE PERMIT TO THE CHURCH OF IMMACULATE CONCEPTION: Mr. Burns noted that the applicant is the Church of the Immaculate Conception. The application is for a pulltab operation at the Fridley Knights of Columbus Hall at 6831 Highway 65 N.E. Staff has reviewed this request for renewal and recommends Council approval. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA FOLLOWING ITEM 12 UNDER NEW BUSINESS. 9. CLAIMS: APPROVED THE PAYMENT OF CLAIM NOS. 80128 - 80375. 10. LICENSES: APPROVED THE LICENSES AS SUBMITTED AND AS ON FILE IN THE LICENSE CLERK'S OFFICE. CITY COUNCIL MEETING OF APRIL 20, 1998 PAGE 8 11. ESTIMATES: APPROVED THE ESTIMATES AS FOLLOWS: Newquist & Ekstrum, Chartered 301 Fridley Plaza Office Building 6401 University Avenue N.E. Fridley, MN 55432-4381 Services Rendered as City Prosecuting Attorney for the Month of January 1998 $16,290.00 Forest Lake Contracting 14777 Lake Drive Forest Lake, MN 55025 Hackmann Avenue/Hackmann Circle Street Improvement Project No. ST 1998-1 Hackmann Avenue Watermain Repair Project 317 Estimate No. 1 $51,295.25 Councilmember Barnette requested that Item 8 be removed from the Consent Agenda for discussion. This was added to the Regular Council Agenda under New Business, immediately following Item 12. No persons in the audience spoke regarding the proposed consent agenda items. MOTION by Councilmember Schneider to approve the consent agenda, with the exception of Item 8. Seconded by Councilmember Bolkcom. Upon a voice vote, all voting aye, Mayor 7orgenson declared the motion carried unanimously. ADOPTION OF AGENDA: Mayor Jorgenson noted the agenda should be amended to include Item 8 from the consent agenda after Item 12 under New Business. MOTION by Councilmember Schneider to Adopt the Agenda AS AMENDED. Seconded by Councilmember Bolkcom. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously. OPEN FORUM, VISITORS: Lloyd G. Staedy, 134 - 63rd Way, stated that he is concerned with the limitations that the City has on garbage containers. He has spoken with Waste Management on two occasions, and they are CITY COUNCIL MEETING OF APRIL 20, 1998 PAGE 9 proposing a 96-gallon cart for yard waste. He felt that a cart such as this would be preferable to having numerous bags of yard waste at the curb on garbage pick-up day. It would be safer for the elderly and also would be beneficial in terms of a recycling standpoint. He wondered why Fridley would not allow residents to use containers such as these for their yard waste if they were properly labeled. Mayor Jorgenson noted that in her previous telephone conversation with Mr. Staedy she had indicated her concerns about putting out a 96-gallon container, stating that some residents do not make a distinction between yard waste and garbage. Furthermore, she is not sure that the City could require that the containers be used only for recycling purposes only. Depending upon the garbage hauler, attention may not be given as to the contents of the container. Councilmember Barnette noted that previously when larger containers for garbage were discussed, many senior citizens felt they would be cumbersome and difficult to get to the street for pick-up. Mayor Jorgenson noted that the City's recycling goals continue to go up on an annual basis. One of the incentives for recycling, from her standpoint, is to keep garbage containers to a reasonable size to encourage people to recycle more. This, however will be an issue that Council will need to discuss in more detail. Mr. Knaak, City Attorney, was directed to determine and report back as to whether or not the City could designate exclusive uses for containers such as these. OLD BUSINESS: 12. SECOND READING OF ORDINANCE REPEALING CHAPTER 407 OF THE FRIDLEY CITY CODE IN ITS ENTIRETY, AND ADOPTING A NEW CHAPTER 407, ENTITLED "RIGHT-OF-WAY MANAGEMENT" AND AMENDING CHAPTER 11 OF THE FRIDLEY CITY CODE, ENTITLED "GENERAL PROVISIONS AND FEES" AND, AUTHORIZE PUBILCATION OF OFFICIAL TITLE AND SUMMARY. (Tabled April 6, 1998): Mr. Burns, City Manager, explained that this issue began in 1996 with the court case of Redwood Falls versus U. S. WEST. Subsequently, the League of Minnesota Cities (LMC) sought to work with the state legislature to regain the control of municipal rights-of-way. A right-of-way management law gives local governments the authority to manage their rights-of-way and recover their costs. The LMC worked with their representative cities to develop a model right-of-way ordinance. A local right-of -way ordinance was made available to the municipalities and subsequently, efforts were made by the PUC Task Force to establish rule-making authority. CITY COUNCIL MEETING OF APRIL 20, 1998 PAGE 10 Mr. Burns stated that the right-of-way ordinance is an attempt by the City to control the use of its rights-of-way. It requires registration of companies that do work in the public right-of-way, requires registered companies to file an annual work plan to obtain a permit for excavation or obstruction of the right-of-way, establishes standards for right-of-way restoration, establishes standards governing the obstruction of traffic flow while right-of-way work is in process. The ordinance also requires as-built drawings, maps and other documentation of work done in the right-of-way. It will also provide recourse to the City for work that is not completed to standards or in a timely manner. It gives the City the right to assign companies to specific right-of-way corridors, provides for the removal of unused or abandoned facilities, and establishes fees to cover the City's cost of administering the provisions of the ordinance. Mr. Burns stated that there has been input from several utility companies. Minnegasco argues that the e�sting franchise adequately insures the restoration of the streets. While it does require them to obtain a permit for excavation of the right-of-way, none of the other requirements of the right-of-way ordinance are present in the franchise. The user fee requirement that is in the proposed ordinance does not apply to telecommunications companies, as State law prevents the City from charging them to these companies. All other provisions of the proposed ordinance would apply to the telecommunication companies. Mr. Burns noted that the City's fees have been criticized as being in excess of the actual costs. Staff has carefully calculated those fees after talking with the various employees involved in doing the work and feels the fees are reasonable. He noted that the fees have been reduced substantially since the ordinance was introduced. The fees for county and state highways have been eliminated. The mapping fee has been reduced from $220 to $110. The obstruction fee has been reduced from $150 to $75. The unit cost for restoration has been reduced from $1.75 per lineal foot over 30 feet to $1.00 for each additiona130 foot section after the first 30 feet. While the proposed fees are currently higher than those of other cities, staff expects that many of these cities will enact similar fees. In response to the discussion that the proposed user fee is in contradiction with the 1997 State law, Fritz Knaak, City Attorney, and LMC officials indicate that this is not so. In response to suggesting that the City delay passage of the ordinance until the MPUC Task Force has completed its work on the rules, staff estimates that it could be another two years before it is acted on. Concerns raised by Council as to the clarity of the user fees have been addressed in the proposed ordinance. Language has been added to Chapter 407.04, Section 3 that explains the basis for the user fee. The user fee applies only to new facilities and not to the repair or replacement of existing facilities. All franchise holders that pay franchise fees are exempt from user fees. The user fee is based on the area of the right-of-way to be occupied by the new facility. The user fee is payable at the time of new construction for a portion of the year in which the facility was completed. Thereafter, the company pays an annual user fee for all facilities installed after the adoption of this ordinance. The logic behind the user fee is that utility companies should be paying the City something for the value of using City property. CITY COUNCIL MEETING OF APRIL 20, 1998 PAGE 11 Mr. Burns noted that staff is recommending Council approval of this ordinance. Mr. Leonard Krumm, a professional engineer and Assistant Director for Engineering Operations for the City of Minneapolis, was present if Council wished to have any particular questions addressed. Councilmember Schneider asked what procedure utility company would need to follow if they had work to do in the right-of-way. Mr. Jon Haukaas, Assistant Public Works Director explained that without passage of this new ordinance, they would need to obtain a permit from the City, pay the fees involved ($200 excavation permit), complete the work, and have it inspected and approved by the City. If it needs to be re-inspected there would be an additional $25.00 charge. Councilmember Schneider asked if the City knows what lies beneath all of the City's streets and highways. Mr. Haukaas explained that the City only has information about its own utilities. The Gopher State One Call has representatives of the various utility companies mark the area of concern. Councilmember Schneider asked how the ordinance would affect the requirements for patching and restoration. Mr. Haukaas explained that this ordinance would give the City the authority to prescribe the manner and e�tent of the restoration. In the case of a new roadway, the City could require the utility company to rebuild the entire street, bring it up to the e�sting condition, and therefore would protect the investment of the taxpayers. At this time, utility companies are only required to patch the area. This mapping fee in the ordinance would aid the City in the preparation of future projects and is a faster method of locating utilities, especially in the event of emergency situations. Mayor Jorgenson asked if the City contacts utility companies to inform them of City projects and coordinate work at the same time. Mr. Haukaas stated that the City did send out a letter to the utility companies with a map showing all proposed City construction projects for this very purpose. Councilmember Barnette asked who determines whether or not a utility company needs to remove an abandoned utility. Mr. Haukaas stated that this would be up to the City. Councilmember Barnette asked when the ordinance would go into effect. Mr. Knaak responded that if it is passed it would go into effect immediately upon publication. Councilmember Schneider asked if staff would re-evaluate the fees annually to determine if they were appropriate and make necessary adjustments. Mr. Haukaas responded in the affirmative. Councilmember Barnette asked what percent the fees in the ordinance would increase over the e�sting fees. Mr. Haukaas noted that the City only has an excavation fee at this time which is $200.00. Councilmember Billings noted that Minnegasco pays over $200,000 to Anoka County per year in property taxes. Of this amount, Fridley receives appro�mately $35,000. He asked if there was any service that the City provides to Minnegasco in exchange for those taxes. Most taxpayers CITY COUNCIL MEETING OF APRIL 20, 1998 PAGE 12 benefit from the police and fire protection with residents benefiting from many additional City resources. Minnegasco is not getting the same level of return that other commercial and residential property owners are getting. This needs to be factored into the equation. Mayor Jorgenson asked if staff has record as to how many miles of pipe Minnegasco has in Fridley. This information was not available. Councilmember Billings stated that his concern was in the significant amount the excavation fee was reduced by. He wondered how this was possible if staff was carefully evaluating actual costs to the City. Secondarily, it is his understanding that the City Engineers Association of Minnesota is looking at the fee structure. With so many numbers given to Council over the last few weeks and taking into account that some of the property taxes paid by the utility companies should be compensated by services the City renders, he would opt to hold the fee structure the same until an annual analysis can be prepared based on numbers. He does not feel that fees should be adjusted upward until they can be justified. Mayor 7orgenson wondered if by not passing the ordinance, the City is essentially degrading some of the City streets by allowing patching which will not help to maintain the life expectancy of the streets. Councilmember Billings stated the City currently requires that the streets be patched satisfactorily. Councilmember Barnette asked what the past track record has been in regard to street restoration. Mr. Haukaas stated that it has been average. There are a number of subcontractors involved, and he can recall some problems in three recent instances. Councilmember Schneider stated that with the possibility of residents eventually being given the opportunity to choose their own utility suppliers, the City can expect perhaps many more utility companies coming in. The City may have a history with the current utility companies but will not have with others. Councilmember Bolkcom noted that the City still is protected by the ordinance (referring to pages 23 and 24 of the agenda book). She stated her concern is that the proposed fees in the ordinance are much higher in comparison with what other communities are charging. Councilmember Schneider stated that Fridley is breaking new ground with this ordinance. Other communities have not been recouping their costs. He is confident that the numbers projected by staff represent an accurate estimate of what they feel it will cost the City to administer this ordinance. Mayor Jorgenson stated that the fees are based on actual costs. She felt that the City should put the new fees in place and re-evaluate them at a later date to determine if they are indeed accurate. Discussion followed in regard to whether the City could pass the ordinance without Chapter 11, or pass the ordinance incorporating the old fees into the ordinance. Councilmember Billings stated that some type of nominal fee would need to be included in Chapter 11 for some of the CITY COUNCIL MEETING OF APRIL 20, 1998 PAGE 13 additional items that have been discussed. The degradation cost is something that the utility company may opt to pay in lieu of fi�ng the street to City standards, and thus would offer an option that companies do not currently have. MOTION by Councilmember Billings to approve Chapter 407 and Chapter 11 as presented, with the amendment to include of language added by staff on page 10 to read as follows: "The user fee reflects the value of the right-of-way needed for new facilities and is based on the average market value of the land, adjusting for the cost of acquisition and non-exclusive use. The dimensions of the occupied land shall incorporate the Gopher One Call criteria of 2 foot clearance on all sides. " Seconded by Councilmember Schneider. UPON A VOICE VOTE, all voting aye, Mayor Jorgenson declared the motion carried unanimously. MOTION by Councilmember Billings to amend Chapter 11, changing the Excavation Fee in Chapter 407.07 to read $200 with all other language to be eliminated; changing Chapter 407.07, Obstruction Permit to $15.00; changing Chapter 407.04, Permit E�tension Fee to $15.00, changing Chapter 407.10 Mapping Fee to $10.00, and changing Chapter 407.05, User Fee by eliminating all language and inserting "In lieu of $10. 00 per projec� " Councilmember Billings stated that the proposed amended fees are not intended to re-coup the City's costs but rather to maintain a fee structure close to how it stands today and to allow the City an opportunity to adequately study and determine what the actual fees are. MOTION by Councilmember Schneider to AMEND Chapter 407.10, Mapping Fee from $10.00 to $100.00. He felt that it would provide the companies a strong enough incentive to comply with the City's format. Seconded by Councilmember Barnette. Councilmember Billings stated that he also believes the $10.00 fee that he proposed is not necessarily a strong enough fee to give the user the incentive to comply with the City's system. However the City does intend to evaluate the fees within a year. By leaving the fee at $10.00, it will maintain the fees at where they currently are. UPON A VOICE VOTE one member voted aye, and four members voted nay, Mayor Jorgenson declared the motion failed. UPON A VOICE VOTE on Motion amending Chapter 11, General Provisions and Fees, four members voting aye, one member voting nay, Mayor 7orgenson declared the motion carried. UPON A VOICE VOTE on Main Motion Approving Chapters 407 and 11 AS AMENDED. All members voted aye, Mayor Jorgenson declared the motion carried unanimously. MOTION by Councilmember Schneider to direct the City Manager and staff to bring back to Council an analysis of the actual costs no later than six months from the date of passage of CITY COUNCIL MEETING OF APRIL 20, 1998 PAGE 14 Ordinance #1116. Seconded by Councilmember Bolkcom. Upon a voice vote, all members voting aye, Mayor 7orgenson declared the motion carried unanimously. MOTION by Councilmember Billings to direct the publication of the ordinance summary as found on page 12.36 of the agenda packet, changing the date of passage in the last sentence thereof from Apri16, 1998 to Apri120, 1998. Seconded by Councilmember Bolkcom. Upon a voice, all members voting aye, Mayor 7orgenson declared the motion carried unanimously. Councilmember Billings asked that the City Manager and the Director of Public Works prepare a written policy statement as to the conditions under which the City would be looking to ask utility companies to remove abandoned property. 8. RESOLUTION IN SUPPORT OF AN APPLICATION FOR A MINNESOTA LAWFUL GAMBLING PREMISE PERMIT TO THE CHURCH OF THE IMMACULATE CONCEPTION: Councilmember Barnette noted that on Page 8 of the City Council minutes for the meeting of April 6, 1998, Council passed a resolution in support of an application for a Minnesota lawful gambling premise permit to the Knights of Columbus Council. He asked if it is lawful to have two gambling permits in the same establishment. Attorney Knaak stated that he believes it is permitted as long as they are not run simultaneously. Councilmember Barnette noted that it is his assumption that one is for Bingo, and that the Immaculate Conception permit would be for pulltabs. Therefore, he believes they would be run at the same time. Attorney Knaak was asked to check on this matter before Council took action on the request. MOTION by Councilmember Barnette to table Item 8 until such time as the Attorney can provide information clarifying the laws pertaining to having two gambling permits in the same establishment. This will be brought before Council at the May 4, 1998 meeting. Seconded by Councilmember Schneider. Upon a voice vote, all members voting aye, Mayor Jorgenson declared the motion carried unanimously. THIS ITEM WAS TABLED TO THE REGULAR CITY COUNCIL MEETING OF MAY 4, 1998. 13. VARIANCE #98-06, BY NORTHWESTERN ORTHOPAEDIC SURGEONS PARTNERSHIP, LLP, TO REDUCE THE NUMBER OF PARKING STALLS AS REQUIRED BY CITY CODE TO ALLOW AN EXPANSION WITHIN THE EXISTING BUILDING FOOTPRINT, GENERALLY LOCATED AT 8290 UNIVERSITY AVENUE N.E. (WARD 3): Mr. Scott Hickok, Planning Coordinator, explained that this property is zoned C-2, General Business, and is a turn back Parcel. Doctors Crandall, Flake and Holmberg are requesting a variance to allow the reconstruction of their existing first floor parking garage as a surgical suite. CITY COUNCIL MEETING OF APRIL 20, 1998 PAGE 15 The request represents a 27 percent reduction in the number of parking stalls required on the site. He noted the City Code sections regarding the parking ratio for various uses. Because the building is a mix of uses, staff has recommended the ratio of one parking stall per 200 square feet of building floor area for speculative floor area. Based on the recommended ratio, 99 parking spaces would be required. Currently there are 69 parking spaces striped and three inside parking spaces on site which would be available after construction. for a total of 72 spaces. With 99 spaces required, the shortage would be 27 percentage. To off-set the lack of spaces, the petitioner has arranged for 27 off-site parking spaces for employees at the Moose Club, west of the subject parcel. Doctors Crandall, Flake and Holmberg have asked that the parking requirement be based on leasable square feet rather than gross square feet for their building. The building is land-locked between University Avenue, University Service Road and 83rd Avenue with public right-of-way issues as well as lack of adjoining property. Therefore, they are unable to provide additional spaces as needed on the property to meet code requirements. Mr. Hickok noted that staff recommends denial of this variance since it will cause present or future owners parking deficiencies for the existing use and the future use. Even with a reciprocal parking agreement, the 27 percent reduction would set a new precedent for variances of this type. The Appeals Commission recommended approval of the variance request with the following stipulations: 1) that the area dedicated to employee parking at the Moose Lodge be identified on a plan for the staff members of both the Moose Lodge and Clinic complexes, 2) the cross-walk for employees be painted on the street surface, of University Avenue Service Drive, in accordance with standards of the Fridley Public Works Department, 3) installation of a walkway occur between the Moose Lodge and Orthopedic parking areas (leading to the painted cross-walk on the service drive), prior to the issuance of a Certificate of Occupancy for the new surgical space, 4) any future modification of use, the City shall be notified by the building owners to re-evaluate the parking demands of that new use prior to commencement of sale or lease. The parking arrangement with the Moose Lodge shall be recorded with Anoka County. Mr. Hickok stated that in talking with the City Engineer, there are two other stipulations related to the crosswalk which he feels would be important to include if Council chooses to concur with the Appeals Commission and recommend approval of this variance. Those additional stipulations include: that the crosswalk shall not only be installed at the petitioners expense, but maintained as necessary to insure that pavement markings are bright and legible, and that the walkways shall be maintained throughout the seasons to assure safe passage and insure that employees and others who park at the Moose Lodge walk across at the designated location. Councilmember Bolkcom asked what would happen to the parking arrangements if the Moose Lodge wished to sell the property. Mr. Hickok noted that recording the document with Anoka County will be required and the agreement will transfer with the sale of the property. This is an arrangement that has been negotiated between the two entities. Councilmember Barnette asked how many people the Clinic employs. Additionally, he wondered how many cars use the lot during peak hours (11:00 a.m. and 1:00 p.m.). Dr. Robin Crandall, CITY COUNCIL MEETING OF APRIL 20, 1998 PAGE 16 Northwestern Orthopedic Surgeons Partnership, LLP, explained that generally the lot is 50 percent or less full. They do not perceive any ongoing parking problems with the proposed construction. Presently they have 42 employees in the three offices, many of whom are employed on a part-time basis. Mayor Jorgenson stated that she has, on occasion, only found a few remaining parking spaces available at 4:00 p.m. She assumed that physical therapy may account for this. Councilmember Bolkcom asked how many new employees they intend to hire with the new surgical unit. Dr. Crandall stated that they plan to hire three additional employees. Council- member Bolkcom asked if an anesthesiologist will also need to be present. Dr. Crandall responded in the affirmative. It was also noted that the surgeon would also be there, rather than at the hospital. It is estimated that a surgical unit could generate another five employees. Councilmember Schneider stated that his concern is in setting a precedence for variances. He also had concerns as to other uses in that building if they should chose to move in the future. He asked if the City could be held liable in the event that a patient was injured while using the crosswalk Dr. Crandall stated that it is not their intent to have any patients use the off-site parking spaces. Those spaces will be used by employees. Attorney Knaak stated that if the City required the parking arrangement with Moose Lodge as part of the condition for allowing the expansion to occur, the City could be creating some type of liability on the part of the City. The City may, in that case, want to consider some type of indemnification. Mayor Jorgenson noted that Northwestern Orthopedic Surgeons currently owns property on the other side of 83rd Avenue. She asked if they have considered expanding with another clinic on that parcel. Dr. Crandall noted that it was discussed as a possibility in the future. Councilmember Bolkcom wanted to know if this property could be used for additional parking rather than the Moose Lodge property. Dr. Crandall stated the Moose Lodge site is a safer alternative. Councilmember Bolkcom asked if tabling this item would pose any problems with regard to the si�ty-day deadline. She stated that she would like Attorney Knaak to review the liability issue and work out some language to indemnify the City if the variance were granted. Mr. Hickok noted that there would not be a problem from staffs standpoint. Dr. Crandall stated that they would like to get plans underway, but he would be open to tabling the action until the May 4, 1998 meeting. Councilmember Schneider asked that staff also research the amount of variances that have been granted in Fridley. His concern is how the City could avoid setting a precedence in granting variances such as this in the future. (Northwest Racquetball Club was suggested as an example for parking variances.) CITY COUNCIL MEETING OF APRIL 20, 1998 PAGE 17 MOTION by Councilmember Bolkcom to table this item until the May 4, 1998 regular City Council Meeting. Seconded by Councilmember Barnette. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously. 14. RECEIVE BIDS AND AWARD CONTRACT FOR 1998 PLAYGROUND EQUIPMENT UPGRADES: Mr. 7ack Kirk, Director of Recreation and Natural Resources, explained that as part of the City- wide effort to improve the neighborhood playgrounds and provide modern, safe and accessible equipment, staff has identified five park locations that are on schedule for replacement in 1998. These include Briardale Park, Edgewater Gardens Park, Plymouth Square Park, Ruth Circle Park, and Sylvan Hills Park As has been done in the past, staff asked vendors to give a proposal for their best equipment for a set dollar amount. The information was then reviewed, and a determination made as to what would be the best value for the funds available. Bids were opened on March 25. There were five vendors who submitted proposals. Notices were sent out to the surrounding neighborhoods, asking for the public's input on the selection process. On Apri16 the Parks and Recreation Commission also reviewed the playground equipment. They concurred with staff's recommendation to award the contract for all five playgrounds to Flanagan Sales, Inc. with the Little Tykes line of equipment for the amount of $32,000 each. This was felt to be the best package for the money. Also, Flanagan Sales was the only company who offered a cash discount for all five parks. This was also the top choice of residents. Mr. Kirk presented diagrams of equipment at two of the proposed playgrounds. MOTION by Councilmember Billings to receive the following bids on the five playground projects: BRIARDALE PARK, PROJECT 310A: MIDWEST PLAYSCAPES, INC., $32,000; MN/WI PLAYGROUND, INC., $32,000; EARL F. ANDERSEN, INC., $32,000; ST. CROIX RECREATION, $32,000; AND FLANAGAN SALES, INC., $32,000. EDGEWATER PARK, PROJECT 310B: MIDWEST PLAYSCAPES, INC., $32,000; MN/WI PLAYGROUND, INC., $32,000; EARL F. ANDERSON, INC., $32,000; AND FLANAGAN SALES, INC., $32.000. PLYMOUTH PARK, PROJECT 310C: MIDWEST PLAYSCAPES, INC., $32,000; MN/WI PLAYGROUND, INC., $32,000; EARL F. ANDERSON, INC., $32,000; AND FLANAGAN SALES, INC., $32,000. RUTH CIRCLE, PROJECT NO. 310D: MIDWEST PLAYSCAPES, INC., $32,000; MN/WI PLAYGROUND, INC., $32,000; EARL F. ANDERSON, INC., $32,000; ST. CROIX RECREATION, $32,000; AND FLANAGAN SALES, INC., $32,000. SYLVAN PARK, PROJECT 310E: MIDWEST PLAYSCAPES, INC., $32,000; MN/WI PLAYGROUND, INC., $32,000; EARL F. ANDERSON, INC., $32,000; ST. CROIX RECREATION, $32,000; AND FLANAGAN SALES, INC., $32.000. Seconded by Councilmember Barnette. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously. MOTION by Councilmember Schneider to award the contracts to Flanagan Sales, Inc. for Projects 310a., 310b., 310c., 310d., and 310e. Seconded by Councilmember Barnette. Upon a voice vote, all voting aye, Mayor 7orgenson declared the motion carried unanimously. CITY COUNCIL MEETING OF APRIL 20, 1998 PAGE 18 Mr. Kirk noted that all equipment will be installed this summer with an anticipated completion date of July 15. 15. INFORMAL STATUS REPORTS: Councilmember Bolkcom complimented staff on the success of the Home Remodeling Fair. She felt that it was very well done and well organized. Mayor 7orgenson noted that vendors also were very appreciative of the Home Remodeling Fair and the opportunities it has given them to do work in their own community. Mayor 7orgenson noted that Anoka County will be having a Household Hazardous Waste collection and product exchange in Fridley on May 1 from 3:00 p.m. until 7:00 p.m. and on Saturday, May 2 from 9:00 a.m. to 3:00 p.m. at Columbia Arena. There will be no charge to residents. Councilmember Bolkcom reminded residents of the Block Captain meeting on April 23 at 7:00 p.m. in the Council Chambers. ADJOURNMENT: MOTION by Councilmember Barnette to adjourn the meeting. Seconded by Councilmember Bolkcom. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously and the Regular Meeting of the Fridley City Council of April 20, 1998 adjourned at 10:55 p.m. Respectfully submitted, Tamara D. Saefke Nancy J. Jorgenson Recording Secretary Mayor