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06/08/1998 - 00000172THE MINUTES OF THE REGULAR MEETING OF THE FRIDLEY CITY COUNCIL OF JUNE 8, 1998 The Regular Meeting of the Fridley City Council was called to order by Mayor Jorgenson at 7:30 p.m. 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 APPROVAL OF MINUTES: COLTNCIL MEETING - May 18, 1998: MOTION by Councilmember Barnette to approve the minutes of the May 18, 1998 City Council Meeting as presented in writing. Seconded by Councilmember Billings. UPON A VOICE VOTE, all voting aye, Mayor 7orgenson declared the motion carried unanimously. APPROVAL OF PROPOSED CONSENT AGENDA: Councilmember Bolkcom noted that a revised copy of the Estimates dated June 8, 1998 was distributed and replaces the one contained in the original agenda book, Pages 9.01 and 9.02. NEW BUSINESS: 1. RESOLUTION NO. 35-1998, AUTHORIZING THE ISSUANCE OF $9,300,000 SENIOR HOUSING REVENUE BONDS (NOAH'S ARK OF MINNESOTA, INC. PROJECT), SERIES 1998: Mr. Burns, City Manager, explained that these bonds are to be issued on behalf of Noah's Ark, Inc. for the construction of a112-unit senior housing project. While the City is establishing a public purpose in approving the bond issue, their actions do not establish a financial liability for the City. The owners of the development bear full responsibility for bond repayment. The Fridley Housing and Redevelopment Authority (HRA), however, has agreed to make up to $683,000 in tax increment financing available for land acquisition and site improvements. A public hearing for this project was held July 14,1997 without objection. CITY COUNCIL MEETING OF JUNE 8, 1998 PAGE 2 ADOPTED RESOLUTION NO. 35-1998, AUTHORIZING THE ISSUANCE OF $9,300,000 SENIOR HOUSING REVENUE BONDS (NOAH'S ARK OF MINNESOTA, INC. PROJECT), SERIES 1998. 2. RESOLUTION NO. 36-1998 AUTHORIZING THE ISSUANCE AND SALE OF THE $150,000 SUBORDINATE HOUSING REVENUE NOTE, SERIES 1998B (NOAH'S ARK OF MINNESOTA, INC., PROJECT) AND THE $300,000 SUBORDINATE HOUSING REVENUE NOTE SERIES 1998C (NOAH'S ARK OF MINNESOTA, INC. PROJECT) AND AUTHORIZING THE EXECUTION OF DOCUMENTS RELATING THERETO: Mr. Burns, City Manager, explained that this is a companion action to the action in Item No. 1. Council is being asked to approve two subordinate revenue notes that will be paid from net operating income after payment of debt service on the bonds. The payees are Craig C. Avery, in recognition of his equity contribution, and The Avery Company and Noah's Ark, Inc., for payment of project development fees. As is the case with the bonds, the City is not incurring any financial liability by its approval of these notes. Their role is to establish public purpose necessary for tax exempt financing. ADOPTED RESOLUTION NO. 36-1998, AUTHORIZING THE ISSUANCE AND SALE OF THE $150,000 SUBORDINATE HOUSING REVENUE NOTE, SERIES 1998B (NOAH'S ARK OF MINNESOTA, INC., PROJECT) AND THE $300,000 SUBORDINATE HOUSING REVENUE NOT SERIES 1998C (NOAH'S ARK OF MINNESOTA, INC. PROJECT) AND AUTHORIZING THE EXECUTION OF DOCUMENTS RELATING THERETO. 3. RESOLUTION NO. 37-1998, AUTHORIZING CHANGES IN APPROPRIATIONS FOR THE GENERAL FUND, SPECIAL REVENUE FUNDS AND CAPITAL IMPROVEMENT FUND FOR THE FOURTH QUARTER OF 1997: Mr. Burns explained that this is the final reappropriation of funds for 1997. The adjustments have arisen as a result of donations, unforeseen expenditures/revenues and operating transfers needed to close out funds. General Fund revenue adjustments resulted in $28,135 being drawn from the General Fund balance. This amount is within the amount budgeted for 1997, and does not require any change in the level of appropriations. Special Revenue Fund adjustments are for the Cable TV Fund, the Grant Management Fund and the Solid Waste Abatement Fund. Cable Television Fund adjustments include $9,394 in unforeseen revenues and $56,647 related to the telecommunications legislation expenditures. Grant Management Fund adjustments include revenue adjustments of $152,211 and expenditure adjustments of $155,516. Solid Waste Abatement Fund adjustments include revenue adjustments of $192,192 and expenditure adjustments of $52,333. Capital Improvement Fund adjustments include $235,271 for streets and $2,710 for parks. CITY COUNCIL MEETING OF JUNE 8, 1998 PAGE 3 ADOPTED RESOLUTION NO. 37-1998, AUTHORIZING CHANGES IN APPROPRIATIONS FOR THE GENERAL FUND, SPECIAL REVENUE BONDS AND CAPITAL IMPROVEMENT FUND FOR THE FOURTH QUARTER OF 1997. 4. RESOLUTION NO. 38-1998, AUTHORIZING OPERATING TRANSFERS FOR THE YEAR ENDED 1997: Mr. Burns explained that these transfers are necessary to reallocate previously budgeted funds and to close out certain capital project funds. These transfers amount to $3,216,633.94, including $1,563,515 from the Closed Bond Fund to the General Capital Improvements Fund for the Fridley Community Center project. ADOPTED RESOLUTION NO. 38-1998, AUTHORIZING OPERATING TRANSFERS FOR THE YEAR ENDED 1997. 5. ESTABLISH A PUBIC HEARING FOR JUNE 22, 1998, FOR AN INTOXICATING LIQUOR LICENSE FOR SPIKERS BEACH CLUB, GENERALLY LOCATED AT 7651 HIGHWAY 65 N.E. (WARD 2): SET PUBLIC HEARING FOR JUNE 22, 1998, FOR AN INTOXICATING LIQUOR LICENSE FOR SPIKERS BEACH CLUB, GENERALLY LOCATED AT 7651 HIGHWAY 65 N.E. 6. APPOINTMENT: CITY EMPLOYEE: Mr. Burns explained that after conclusion of a comprehensive firefighter selection process involving seven firefighter candidates, the City is pleased to recommend the appointment of Ronald R. Larson as the new full-time firefighter. Ron replaces Howard Simonson who retired earlier in the year. Ron was raised in Fridley and graduated from Fridley High School in 1984. He has worked with the Columbia Heights Fire Department and the Fridley Fire Department and has served as a Paid-on-call Volunteer Firefighter. Ron is a resident of Fridley and involved in Fridley Youth Sports. He is also an E.MT. instructor for Health Span. Ron was the training coordinator for the latest Paid-on-call Volunteer Firefighter recruit group and is the Vice President of the Fridley Volunteer Firefighters Relief Association. APPROVED APPOINTMENT OF RONALD R. LARSON TO THE POSITION OF FULL-TIME FIREFIGHTER WITH THE CITY OF FRIDLEY. 7. CLAIMS: APPROVED THE PAYMENT OF CLAIM NOS. 80816 - 81097. CITY COUNCIL MEETING OF JUNE 8, 1998 PAGE 4 10. LICENSES: APPROVED THE LICENSES AS SUBMITTED AND AS ON FILE IN THE LICENSE CLERK'S OFFICE. 11. ESTIMATES: APPROVED THE ESTIMATES AS FOLLOWS: Insituform Central, Inc. 4510 77th Street Edina, NIN 5 543 5 Sanitary and Storm Sewer Repair Project No. 314 Estimate No. 2 M. C. Magney Construction, Inc. 19245 Highway 7 P. O. Box 249 Excelsior, MN 55331 Well House No. Project No. 298 Estimate No. 8 1 and Booster Station Park Construction Company 7900 Beech Street N.E. Minneapolis, MN 55432-1795 Rice Creek Bank Stabilization Project No. 309 Estimate No. 2 Ron Kassa Construction 743 8 Upton Richfield, MN 55423 1998 Miscellaneous Concrete Curb and Gutter and Sidewalk Project No. 315 Estimate No. 2 $64,628.50 $16,459.70 $36,311.85 $ 5,170.85 CITY COUNCIL MEETING OF JUNE 8, 1998 PAGE 5 Forest Lake Contracting 14777 Lake Drive Forest Lake, MN 55025 Hackmann Avenue/Hackmann Circle Street Reconstruction Project No. ST 1998-2 Estimate No. 4 $104,256.12 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 March 1998 $16,582.50 Frederic W. Knaak, Esq. Holstad and Larson, P.L.C. 3535 Vadnais Center Drive St. Paul, MN 55110 Services Rendered as City Attorney for the Month of May 1998 $ 4,250.00 MOTION by Councilmember Schneider to Approve the Consent Agenda as presented. Seconded by Councilmember Billings. UPON A VOICE VOTE, all voting aye, Mayor 7orgenson declared the motion carried unanimously. ADOPTION OF AGENDA: Mr. Flora requested that four resolutions added to the agenda. Ms. Dacy also requested that one resolution be added. These will be discussed in the following order: Resolution No. 39-1998 (PW 98), Resolution No. 40-1998, (PW98-119), Resolution No. 41-1998 (PW98-120), Resolution No. 42-1998 (PW98-123) and Resolution No. 43-1998 Authorizing the acquisition of eminent domain proceeding to acquire for simple property. Discussion of these items will take place immediately following Item 16 of the agenda. MOTION by Councilmember Barnette to Approve the Adoption of 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: Mayor Jorgenson explained that this is the time reserved for residents to address Council on items that are not on the agenda. CITY COUNCIL MEETING OF JUNE 8, 1998 PAGE 6 Mayor Jorgenson noted that the Fridley royalty was present to kick off the Fridley `49er Days. Mr. Chuck McKusick, President of Fridley `49er Days, introduced Queen Ann Skirka, and Princesses Kara Rudolph and Eric Klaers. Ms. Skirka noted that the Fridley `49er Day Parade will be held Thursday, June 11, beginning at 6:30 p.m. The pageant will be held Sunday, June 14 at 6:30 p.m. in the Fridley High School Auditorium. A fashion show is scheduled for Friday, June 12, at 7:00 p.m. at Northtown Mall. Additionally, there will be the carnival, a Beach Bash and many other activities. Flyers are available at the Municipal Center. Information can also be obtained by calling 572-3600, e�. 349. There were no other comments from the floor. PUBLIC HEARINGS: 10. APPROVAL OF INTOXICATING LIQUOR LICENSE FOR AMF BOWLING CENTERS, INC., (DB/A AMF MAPLE LANES, 6310 HIGHWAY 65 N.E. (WARD 2): MOTION by Councilmember Schneider to open the public hearing at 7:49 p.m. Seconded by Councilmember Billings. UPON A VOICE VOTE, all voting aye, Mayor 7orgenson declared the motion carried unanimously and the public hearing was officially opened at 7:49 p.m. Mr. Pribyl, Finance Director, explained that Maple Lanes is being purchased by AlVg' who requested that a liquor license be issued to them. The Police Department performed the required investigation on AlVg' Maple Lanes. Public Safety Director Sallman did not find any reason to deny this request. The sale of the property is scheduled to occur June 9, 1998, and approval of the license would only occur if the sale goes through and transfer of title occurs. David Langer, Center Manager for AlVg' Maple Lanes, was present to answer any questions in regard to this liquor license application. Councilmember Billings asked if AlVg' was aware of the food to liquor ratio requirement (60/40) and that any managers of the operation would need to be licensed by the City of Fridley and go through the necessary police checks. Mr. Langer responded in the affirmative. Councilmember Billings informed Mr. Langer that police decoys are sent out periodically to various liquor establishments to verify that liquor is not being sold to underage patrons. Councilmember Billings noted that Mr. Pribyl anticipated a 7une 9 closing on the property. Approval of the license would be considered at the 7une 22 Council meeting. If ownership changes June 9, 1998, they would not be licensed to sell liquor until their license is approved on June 22. Mr. Langer stated that it s his understanding that the closing will not occur until later in June. Councilmember Bolkcom felt that a letter should be sent to AlVg' to confirm that no liquor sales will occur prior to the issuance of a liquor license. Mr. Pribyl noted that staff has been in contact CITY COUNCIL MEETING OF JUNE 8, 1998 PAGE 7 with AlVg' and will contact them both via telephone and letter in regard to this matter. Staff will also keep themselves up to date as to change of ownership on the property. There were no further questions from the public. MOTION by Councilmember Schneider to close the public hearing at 8:00 p.m. Seconded by Councilmember Billings. UPON A VOICE VOTE, all voting aye, Mayor 7orgenson declared the motion carried unanimously and the public hearing was closed at 8:00 p.m. 11. APPROVAL OF ON-SALE BEER LICENSE FOR COLUMBIA ARENA (7011 UNIVERSITY AVENUE N.E. (WARD 1): MOTION by Councilmember Billings to open the public hearing at 8:01 p.m. Seconded by Councilmember Barnette. UPON A VOICE VOTE, all voting aye, Mayor Jorgenson declared the motion carried unanimously and the public hearing was officially opened at 8:01 p.m. Mr. Pribyl explained that the ownership of Columbia Arena has changed from the County to the State of Minnesota through the National Sports Center Foundation. The foundation is requesting issuance of an on-sale beer license. The Police Department has performed the required background investigation and has found no reason to deny this request. Should Council approve this request at their June 22, meeting, staff would ask that a stipulation be attached to state that beer sales will only occur during the Twin City Vulcans' Junior A hockey games. Paul Erickson, Executive Director of Minnesota Amateur Sports Commission, 7im 7ohannson, General Manager of the Twin City Vulcans, and Peter Carlson and Tim Dunn of the Columbia Arena staff were present to address questions or concerns. Mr. Erickson explained that they recently completed appro�mately $100,000 in improvements to the arena. An amount equal to that is expected to be invested into the building again this year. The Twin City Vulcans is a 7unior A hockey team for adult men who are pursuing a career in hockey. It is the highest level of hockey in the state between high school and the Minnesota Gophers. If the license is granted, the beer would be sold from cans but disbursed into cups at the time of sale. Councilmember Barnette asked how many games are played in the season. Mr. Johannson responded that there are approximately 28 home games which are played on Fridays, Saturdays or Sundays. There is a wide variety of spectators, ranging from families with children to senior citizens. Councilmember Bolkcom asked what would prevent patrons from bringing beer into the arenas. Mr. 7ohannson stated that they would provide security and tickets would be required for the Vulcan games. Additionally, the beer could be sold in one designated area. Councilmember Bolkcom stated that she feels it would be appropriate to limit the sales area especially if the game is an event that families participate in. CITY COUNCIL MEETING OF JUNE 8, 1998 PAGE 8 Councilmember asked if Fridley was being considered a temporary home for the Vulcans until the four sheets of ice are constructed in Blaine. Mr. Johannson stated that they look at this as their permanent home. They recently signed a five-year lease agreement with renewal options. Mr. Tom Rafferty, 148 Horizon Circle, stated his opposition to this request. He did not feel it would be necessary to provide beer at every sporting event. Furthermore, he wondered if Woodcrest Baptist Church and School adjacent to the arena had been informed of this request. Mr. Pribyl explained that the publication for the public hearing was advertised in Focus News. There were no questions or comments from the public. MOTION by Councilmember Barnette to close the public hearing at 8:14 p.m. Seconded by Councilmember Billings. UPON A VOICE VOTE, all members voting aye, Mayor 7orgenson declared the motion carried unanimously and the public hearing was closed at 8:14 p.m. NEW BUSINESS: 12. 57TH AVENUE STREET IMPROVEMENT PROJECT NO. ST. 1997-4: MOTION by Councilmember Bolkcom to open the public hearing at 8:15 p.m. Seconded by Councilmember Schneider. UPON A VOICE VOTE, all members voting aye, Mayor 7orgenson declared the motion carried unanimously and the public hearing was opened at 8:15 p.m. Mr. Hickok, Community Development Director, provided a map of the construction area, noting that the City has spent considerable time analyzing 57th Avenue and determining the improvements which are necessary to make it function properly. The City determined that if the road were to be improved with new curb and gutter, new storm sewer and new utilities, the time would also be appropriate to look at any other enhancements that would be desirable for the area to make it more appealing as a commercial corridor. As a result, a streetscaping plan was devised, including hedges, fences, plantings, street trees, street lighting, etc. To get input from some of the affected property owners, a meeting was held March 3. A majority of the property owners seemed enthusiastic about the proposed improvements, but there remain three properties with pending easements. Mr. Hickok provided diagrams showing the newly proposed roadway with turn lanes as well as the elimination of access drives. Mr. Hickok noted that he received a letter from both Mr. and Mrs. Rust, and from their attorney regarding this issue. Mr. and Mrs. Rust are the property owners of the apartment units on 57th Avenue. They do not believe that the improvements will enhance their property or add to their property value. Mr. Flora, Director of Public Works, explained that based upon the bids that the City received on the recommended improvements, the assessments would amount to $101.31 per lineal foot for property owners on 57th Avenue. Forest Lake Contracting was the low bidder on this project and staff recommended that Council receive their bid and consider it for implementation. CITY COUNCIL MEETING OF JUNE 8, 1998 PAGE 9 MOTION by Councilmember Bolkcom to receive the letter from David and Norma Rust, dated June 8, 1998 and the letter from Attorney Lawrence P. Marofsky, dated May 28, 1998. Seconded by Councilmember Schneider. UPON A VOICE VOTE, ALL MEMBERS VOTING AYE, MAYOR JORGENSON DECLARED THE MOTION CARRIED UNANIMOUSLY. Councilmember Bolkcom asked for a clarification of an easement and a construction easement. She asked if the apartment building owned by Mr. and Mrs. Rust would lose all of the parking during the construction period, as is claimed in their letter to the City. Mr. Flora explained the two easements and responded that there would be some impact as a part of the construction. However, it will not have a major impact on the parking for the property. Councilmember Bolkcom asked if Mr. and Mrs. Rust would lose one parking space for their rental property after construction has been completed. Mr. Hickok stated that he does not believe the parking space will be sacrificed as part of the construction. It was noted that the property is not a conforming property at this time, that the lots are rather shallow, and the overall size of the lots do not conform with the code. Mr. James Selmer and Mr. Mark Berg were present on behalf of Hardee's Restaurant to address the concerns expressed by members of the Hardee's headquarters office in North Carolina. Mr. Selmer stated that the May 27 letter which was sent out to the affected properties on 57th Avenue was the first notification his client received which indicated that the plan for the project was proceeding. He noted that Hardee's is not in favor of the project, and they are not interested in signing off on the easement. They felt the improvements would have a negative impact on their business, and they asked that Council postpone consideration of this project until Hardee's has had an opportunity to deal with the issues of concern. Councilmember Bolkcom asked Mr. Hickok if all of the property owners were notified in March of the informational meeting on the proposed project. Mr. Hickok responded that all property owners were notified of this meeting locally. Mr. Selmer stated it is his understanding that very little information was released at the March meeting. He believed that the store manager contacted a representative at the Hardee's headquarters to notify them about this issue. At that time, Sarah Thomas of the Hardee's headquarters in Rocky Mount, North Carolina, asked for an understanding as to the project. Mr. Hickok responded with a letter, dated May 15, 1998, which explained the design, costs and the proposed construction schedule of the project. The ne�t communication from the City was dated May 27 and informed them of the public hearing scheduled for June 8. Mr. Selmer stated that his client was not given adequate notice in order to resolve the issues concerning the proposed improvements. The construction will have a tremendous impact on Hardee's. They will lose one of their access drives, and the changes that are proposed will obscure Hardee's vision further. Additionally, there will be costs involved in moving their sign to a new location,and they will lose ten of their angled parking spaces along 57th Avenue. CITY COUNCIL MEETING OF JUNE 8, 1998 PAGE 10 The Councilmembers had several questions regarding claims that Hardee's did not receive adequate notice of the proposed project. Mr. Billings asked how property owners were notified of the meeting in March. Mr. Hickok explained that a letter had been sent to each of the local companies via U. S. Mail. He further stated that he had a series of local telephone conversations, and he personally met with Hardee's with regard to the project in late April or early May. Mr. Scott Getts was present at that meeting. In early May Mr. Hickok had a telephone conversation with Ms. Thomas from North Carolina. Sometime thereafter Mr. Getts himself contacted the North Carolina Hardee's Headquarters. Mayor Jorgenson asked what the City's procedure is to notifying property owners of a public hearing. Mr. Hickok noted that local meetings are publicized locally. A discussion followed regarding the loss of the eight parking stalls facing 57th Avenue on the Hardee's property. Mr. Hickok noted that it was his feeling that eliminating these spaces would provide better circulation of traffic in the lot. It should be noted that Hardee's presently has nine more parking spaces than what is required by City Code. Mr. Hickok noted that the relocation of the Hardee's sign would not be the responsibility of the property owner. Ms. Norma Rust, property owner of the apartment building on 57th Avenue, stated that she often does not receive Focus News, and; therefore, may not always be aware of ineetings. She is a property owner, but she does not live in the Hyde Park neighborhood. Therefore, she does not receive the Hyde Park Newsletter. Ms. Rust acknowledged that there has been a traffic flow problem on 57th Avenue. However, she felt that much of the work being done would create an ambiance. She, as a property owner, does not want to be responsible for the $101.31 per lineal foot assessment if the purpose of the lighting would create an ambiance. The improvements along 57th Avenue would have a negative impact on her property, as she would lose the boulevard area that is used during the winter for snow storage, salt and chemicals from 57th Avenue. Mr. Hickok noted that he discussed this issue with the traffic consultants; however, it was felt there was adequate space surrounding the lot for storage of snow. Councilmember Bolkcom noted that this project was originally discussed when The Home Depot constructed their new facility in Fridley. The improvements would help with traffic flow problems and safety issues. A discussion followed regarding the owners of record for the apartment building property. Mr. Hickok noted that assessment records list Irving and Efron I. S. Hermann as the owners, with the taxpayers being listed as David and Norma Rust. Mrs. Rust indicated that the rental license lists them as the property owners, which is accurate. Mr. Hickok suggested that Mr. and Mrs. Rust contact the Assessing Division and the County of Anoka to update the records. Mr. Flora explained that if the construction easement was an issue of concern to Mr. and Mrs. Rust, it could be eliminated. However, as soon as construction is completed, the easement will be vacated. CITY COUNCIL MEETING OF JUNE 8, 1998 PAGE 11 Mr. Rust voiced a number of issues which were of concern including tree maintenance, maintenance of the light fi�tures, drainage problems, and whose responsibility it would be to pay for the electricity for the lighting. Mr. Hickok explained that maintenance of the trees and shrubs would be the responsibility of the property owners, as well as the electricity for the lighting fi�tures. Steve Linn, owner of property at 251 - 57th Avenue N.E., stated that he supports this project. He said the City has had a number of public hearings/informational meetings with regard to the project. The uniform streetscaping would improve the visibility of Hardee's as well as other businesses on 57th Avenue. The lighting would increase the safety of the residents. He noted that he has tentatively secured a tenant for a portion of his property; however, it is contingent upon the street improvements proceeding. Mr. Tom Rafferty, 148 Horizon Circle, stated that he felt the improvements would be good for the area. There were no further comments or questions in regard to this issue. MOTION by Councilmember Bolkcom to close the public hearing at 10:00 p.m. Seconded by Councilmember Barnette. UPON A VOICE VOTE, all members voting aye, Mayor Jorgenson declared the motion carried unanimously and the public hearing was closed at 10:00 p.m. 13. SPECIAL USE PERMIT, SP #98-04, BY W. W. KLUS REALTY, INC. TO ALLOW THE USE OF 30 PARKING STALLS AS PLACES FOR THE SALE OF VEHICLES, GENERALLY LOCATED AT 7920 AND 7976 UNIVERSITY AVENUE N.E. (WARD 3) (Tabled Mav 18, 1998): Mr. Hickok provided a brief history of this special use permit request and an update as to what has transpired since the May 18 Council meeting. He noted that at the May 18 meeting, Mr. Klus requested additional time to evaluate different options and to meet with staff. Staff met with Mr. Klus' attorney, and Mr. Klus presented a revised site plan showing additional stalls in front of the Express Auto office. Staff recommendations remain the same; however, two options were presented for consideration: 1) to approve a short-term special use permit until November 30, 1998, with the stipulations outlined in staffs May 29, 1998 letter to Mr. Klus; or 2) to deny the special use permit as recommended to the City Council on May 18, 1998. A copy of the revised site plan was presented for review. Mr. Hickok noted that the petitioner originally asked for a three-year agreement with the City. A two-year agreement term would require them to enter into a new lease agreement and may be looked upon by others as an appropriate location for multi-tenants and steer them in the wrong direction. A short-term agreement would allow them to get through their current lease. Councilmember Bolkcom asked if there could be stipulations in the agreement as to the number of vehicles which could be stored there, in the event that Council agreed to a short-term agreement. CITY COUNCIL MEETING OF JUNE 8, 1998 PAGE 12 Mr. Hickok explained that there are 26 parking stalls along Ranchers Road on the west end of the site. Staff has stipulated that if Express Auto were to continue for the short-term period, staff would recommend that the 26 stalls along Ranchers Road be utilized. Mr. Klus stated that his concern is the security of the vehicles if they were required to be parked in the recommended stalls along Rancher's Road. He stated he believes that Express Auto has addressed the parking and safety issues which were discussed at the May 18 Council meeting. Councilmember Bolkcom stated that staff has always clearly indicated that there was to be no outside storage of automobiles on the site. Mr. Klus explained that the vehicles are not identified as vehicles for sale. They are not to be stored on the property, but rather they are parked there. Councilmember Bolkcom explained that the vehicles are indeed being stored on the property which is in violation of City Code. Mr. Bill Richards, owner/operator of Express Auto Sales and Leasing stated that he appreciated the efforts that have been made on behalf of the City to allow him to operate through the end of his current lease term. However, it took him one year to find his current location and an additional 120 days to negotiate the lease, etc. Since that time the business has changed, and he is concerned that he may experience additional difficulties in finding a new location for the business in its current operation. He asked Council to consider a 17-month agreement to allow him to relocate. He stated that the parking option addressed by staff along Ranchers Road would require monitoring for security purposes, and he does not see this location as a viable option. Mr. Gregory Soule, Best & Flanagan, was present and again stated that he felt the concerns addressed by Council had been satisfied. Mayor Jorgenson stated that she did not want to give the impression that the City was being heavy handed with this business owner. The number of vehicles for this business has grown from a minimum of five vehicles to thirty vehicles. She stated she had difficulty with the way the entire process has evolved. The City has been actively working with Express Auto since 1994 to resolve some of these issues. Councilmember Bolkcom stated that in October 1997, staff made it very clear that the business in its current operation was not an allowable use without a special use permit. It took them a long time to respond to the City's requests. Realizing that this site was not a suitable location, it would have been wise for Mr. Richards to be actively seeking a new location. Mr. Richards stated that he was aware of the circumstances and was merely asking Council to allow him reasonable time to e�t his current site and to find a new location while keeping his business alive. MOTION by Councilmember Bolkcom to approve a short-term special use permit until November 30, 1998 with the stipulations outlined in staffs May 29, 1998 letter to Mr. Klus and AMENDED as follows: Page 2, Item 4 should be changed to read "The special use permit will CITY COUNCIL MEETING OF JUNE 8, 1998 PAGE 13 allow for the storage and display of 10 vehicles." Item 5 is to be deleted and all other language will remain. Seconded by Councilmember Schneider. UPON A VOICE VOTE, ALL MEMBERS VOTING AYE, MAYOR JORGENSON DECLARED THE MOTION CARRIED UNANIMOUSLY. NEW BUSINESS: 14. RECEIVE BIDS AND AWARD CONTACT FOR THE 57TH AVENUE RECONSTRUCTION PROJECT NO. ST. 1997-4: Mr. Flora explained that bids were opened for the 57th Avenue reconstruction project on April 30, 1998 with Forest Lake Contracting identified as the low bidder in the amount of $886,687.92. Anoka County Highway Department approves the award of the contract based upon the fact that the City will provide them with $100,000 toward the project and that the City shares the construction cost over the county's budgeted $300,000. Staff recommends that Council receive the bids and award the contract for the project to Forest Lake Contracting, Inc. in the amount of $886,687.92. MOTION by Councilmember Bolkcom to receive the bids and to approve the award of the contract for the 57th Avenue Reconstruction Project to Forest Lake Contracting, Inc., in the amount of $886,687.92. Seconded by Councilmember Schneider. UPON A VOICE VOTE, ALL MEMBERS VOTING AYE, MAYOR JORGENSON DECLARED THE MOTION CARRIED UNANIMOUSLY. 15. VARIANCE REQUEST, VAR #98-13, BY NORTHCO CORPORATION TO REDUCE THE SIDE YARD SETBACK FROM 20 FEET TO 5.4 FEET TO ALLOW THE ENCLOSURE OF AN EXISTING LOADING DOCK AT THE PROPERTY GENERALLY LOCATED AT 494 NORTHCO DRIVE N.E. (WARD 1): Mr. Hickok provided Council with a brief summary of the request. He explained that approval of this request would allow Northco Corporation to keep an e�sting enclosed loading dock The loading dock was enclosed last summer. The building permit was granted, accompanied by a site plan which portrayed the property line before the last subdivision. Therefore, the assumed side yard setback was over 200 feet from the lot line rather than the actual 25 feet. The zoning regulations required a structure to be a minimum of 20 feet from the property line. However, the Uniform Building Code requires 60 feet between an unlimited area building and a property line. This building would therefore not be allowed per current standards. A 60 foot clear area exists between the property and the Target property. The interpretation of the Uniform Building Code setback is unclear, and the State of Minnesota has left it up to the interpretation of the local community. Currently, the e�sting building is 25 feet form the east property line, and the loading dock is only 5.4 feet from the east property line. CITY COUNCIL MEETING OF JUNE 8, 1998 PAGE 14 Staff recommended to the Appeals Commissions denial of this request as a hardship to grant the variance is not evident, it is self-imposed. Several options were outlined for the Appeals Commission. The Commission recommended approval of the variance contingent upon meeting the State Building Code and the Uniform Building Code. It remains staff's recommendation to Council that this request be denied. Mr. Larry Berg, representing Mr. James Gray was present to address questions. Mr. Gray contends that Dayton-Hudson was assured that a 60-foot total separation between buildings was all that would be required. He referred to a letter, dated May 20, 1994 from Ms. Dacy to the Fridley Business Center Partnership, i.e. Item 4, pertaining to this issue. Several conversations occurred between Scott McClellan from the State of Minnesota and Ms. Dacy with the result that it would be left up to the local building official. Both interpretations of the code are essentially correct. City staff, however is taking a consistently conservative approach. MOTION by Councilmember Billings to approve Variance Request #98-13, without stipulations. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR JORGENSON DECLARED THE MOTION CARRIED UNANIMOUSLY. 16. VARIANCE REQUEST, VAR #98-15, BY MENARD'S INC., TO ALLOW AN INCREASE IN THE MAXIMUM SIZE OF WALL SIGNAGE AT THE PROPERTY GENERALLY LOCATED AT 5351 CENTRAL AVENUE N.E. (WARD 1): Mr. Hickok explained that Steven Barrett, of Menard's, Inc. is requesting a variance to allow 199.5 additional square feet of signage on their building at 5351 Central Avenue N.E. Though numerous pylon sign requests have been approved, no similar wall sign size requests have been approved. The Appeals Commission recommended denial of the variance request, and staff recommends that Council concur with the Appeals Commission decision. Mr. Steve Barrett, of Menard's, Inc. was present to discuss this request. He explained that they are asking for an additional 19 square feet of signage than what they have now. MOTION by Councilmember Billings to concur with the Appeal's Commission decision and to deny the variance request, VAR #98-15. UPON A VOICE VOTE, ALL MEMBERS VOTING AYE, MAYOR JORGENSON DECLARED THE MOTION CARRIED UNANIMOUSLY. CITY COUNCIL MEETING OF JUNE 8, 1998 PAGE 15 17. RESOLUTION NO. 39-1998, RECOMMENDING AWARD OF TH 65/I-694/CSAH 35 IMPROVEMENT PROJECT (S.P. 0207-66, 127-010-13, 127-315-05, 02-635-06, 127-029-19): Mr. Flora explained that the state opened the bids and will award them per Council approval. The low bidder was P.C.I. in the amount of $4,626,151.15. MOTION by Councilmember Barnette to adopt resolution No. 39-1998. Seconded by Councilmember Schneider. UPON A VOICE VOTE, ALL MEMBERS VOTING AYE, MAYOR JORGENSON DECLARED THE MOTION CARRIED UNANIMOUSLY. 18. RESOLUTION NO. 40-1998, APPROVING THE AGREEMENT WITH THE MINNESOTA DEPARTMENT OF TRANSPORTATION NO. 77381: MOTION by Councilmember Schneider to adopt Resolution No. 40-1998. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL MEMBERS VOTING AYE, MAYOR JORGENSON DECLARED THE MOTION CARRIED UNANIMOUSLY. 19. RESOLUTION NO. 41-1998, APPROVING A SIGNAL AGREEMENT WITH THE MINNESOTA DEPARTMENT OF TRANSPORTATION FOR UPGRADES ON TRUNK HIGHWAY 65 AT 53RD AVENUE, I-694 AND C.S.A.H. 35: Mr. Flora explained that this is a standard agreement that the City has with the State of Minnesota to maintain all of the traffic signals. MOTION by Councilmember Barnette to adopt Resolution No. 41-1998. Seconded by Councilmember Schneider. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR JORGENSON DECLARED THE MOTION CARRIED UNANIMOUSLY. 20. RESOLUTION NO. 42-1998, AUTHORIZING MUNICIPAL STATE AID FUNDS TO COUNTY STATE AID HIGHWAY (C.S.A.H. 35) CENTRAL AVENUE - OSBORNE ROAD TO RICE CREEK (SAP 02-635-00) (SAP 127-020-21): Mr. Flora stated that staff recommended that Council adopt the resolution requesting Off-System Municipal State Aid Funds to pay the City's portion of the project. MOTION by Councilmember Schneider to adopt Resolution No. 42-1998. Seconded by Councilmember Bolkcom. CITY COUNCIL MEETING OF JUNE 8, 1998 PAGE 16 UPON A VOICE VOTE, ALL VOTING AYE, MAYOR JORGENSON DECLARED THE MOTION CARRIED UNANIMOUSLY. 21. RESOLUTION NO. 43-1998, AUTHORIZING THE ACQUISITION OF AN EMINENT DOMAIN PROCEEDING TO ACQUIRE FEE SIMPLE: Ms. Dacy explained that staff continues to negotiate with the property owners for the acquisition of property to allow for the 57th Avenue Reconstruction Project. However, this resolution would authorize staff to proceed with acquisition via Eminent Domain in the event that negotiations are not successful. MOTION by Councilmember Bolkcom to Adopt Resolution No. 43-1998. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR JORGENSON DECLARED THE MOTION CARRIED UNANIMOUSLY. 22. INFORMAL STATUS REPORTS: Councilmember Bolkcom reminded residents of the Vision Meeting scheduled for 7une 25 at 7:00 p.m. Councilmember Barnette stated that he voiced disappointment that a School District representative was not present at the last Vision Meeting. It was later brought to his attention that there was a representative in attendance, and he apologized for not having acknowledged this. He noted that he would like to see more young adults in attendance at the Vision Meetings as well as participation by other School Districts who have students from the Fridley area. Mayor Jorgenson reminded residents of the Fridley `49er Days events scheduled for June 11 through June 14, 1998 and encouraged them to attend. ADJOURNMENT: MOTION by Councilmember Billings to adjourn the meeting. Seconded by Council-member Barnette. UPON A VOICE VOTE, all voting aye, Mayor Jorgenson declared the motion carried unanimously and the Regular Meeting of the Fridley City Council of 7une 8, 1998 was adjourned at 11:55 p.m. Respectfully submitted, Tamara D. Saefke Nancy J. Jorgenson Recording Secretary Mayor