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06/12/2006 - 00027519CITY OF COUNCIL MEETING CITY OF FRIDLEY JUNE 12, 2006 The City Council meeting for the City of Fridley was called to order by Mayor Lund at 7:31 p.m. ROLL CALL: MEMBERS PRESENT: Mayor Lund Councilmember-at-Large Barnette Councilmember Billings Councilmember Bolkcom MEMBERS ABSENT: Councilmember Wolfe OTHERS PRESENT: William Burns, City Manager Fritz Knaak, City Attorney Scott Hickok, Community Development Director Jon Haukaas, Public Works Director John Berg, Fire Chief PROCLAMATIONS: Stand for Children Day — June 17, 2006 PRESENTED. 2006 VALUES FIRST COMMMUNITY RECOGNITION AWARDS: Business: McDonald's of Fridley — Mark Wheeldon Organization: Columbia Park Education & Research Foundation Individual: Dorothy Gargaro PRESENTED. LEGISLATIVE UPDATE: Char Samuelson, State Representative, stated she will be retiring this year. She stated she has worked mostly on healthcare legislation. She did get a lot of bills passed including a bill mandating that children under ten years old must wear a life jacket. Don Betzold, State Senator, stated this was the second year of the two-year cycle so the bills introduced last year that were not active did carry over this year. They started the session on FRIDLEY CITY COUNCIL MEETING OF JUNE 12, 2006 PAGE 2 March 1 and went until May 21. The big issue this year was the bonding bill and the critical thing for the suburbs was the inclusion of the Northstar Commuter Rail. Unfortunately, the bonding bill did not include funding for the Springbrook Nature Center. There was some money freed up because of the Supreme Court's ruling on the tobacco health impact fee. That was a fee of $4 million which was also used to help fund Early Childhood initiatives, mental health services, sex offender treatment programs, and veterans programs. As a result, they were able to do some things which they may not have ordinarily been able to do. He outlined numerous bills that were passed. Connie Bernardy, State Representative, stated they did get some bill money for the northern part of the district that she represents which is by County Road J and 35W to expand that area for the Medtronic project. She also discussed property tax relie£ She encouraged people to call her with any concerns. Barbara Goodwin, State Representative, talked about healthcare and the stadium issues. She stated she has been honored to represent the people of Fridley, St. Anthony, Columbia Heights, and Hilltop during the past six years. She said she would not be running again for office. APPROVAL OF PROPOSED CONSENT AGENDA: APPROVAL OF MINUTES: City Council Meeting of May 22, 2006 APPROVED. OLD BUSINESS: 1. Second Reading of an Ordinance Repealing Chapter 105 of the Fridley City Code Pertaining to Landscape Maintenance and Adopt Official Title and Summary Ordinance. Dr. Burns, City Manager, stated the ordinance replaces Chapter 105. It applies to the maintenance of lawns and the depositing of yard waste, as well as lawn fertilizers. After many months of discussion and formal readings and conference sessions, the current version of the ordinance does not require buffer strips along the frontage of waterways as was the case with earlier legislation. It also does not contain language requiring the direction of gutters and downspouts away from paved surfaces. The ordinance as currently written has been approved by both the Planning Commission and Environmental Quality and Energy Commission. Staff recommend's Council's approval of the second and final reading of the ordinance and approval of the summary ordinance. FRIDLEY CITY COUNCIL MEETING OF JUNE 12, 2006 PAGE 3 WAIVED THE READING OF THE ORDINANCE AND ADOPTED ORDINANCE NO. 1232 ON SECOND READING AND THE OFFICIAL TITLE AND SUMMARY ORDINANCE AND ORDERED PUBLICATION. 2. Resolution Determining that a Certain Parcel is Occupied by a Structurally Substandard Building and is to be Included in a Tax Increment Financing District (6000 East River Road) (Ward 3). William Burns, City Manager, stated the Fridley HRA has purchased 6000 East River Road as the initial step towards establishing a redevelopment project in the area south of Hayes Elementary School. The HRA had the house inspected and determined that it is a substandard structure and moved to demolish the structure prior to including this property in a future TIF district. Staff recommends that Council also declare the structure as substandard and allow for demolition of the house. It is uncertain at this point whether the HRA will create the TIF district or do a redevelopment project. The resolution will allow for the inclusion of the property in a TIF district that they may choose to create within the ne�t three years. Councilmember Barnette asked if the building must remain standing until a project is started. Scott Hickok, Community Development Director, stated it can be removed. They are recommending that it be removed because of its proximity to a school and the fact that it would become an attractive nuisance if it is not. They do have a three-year window of time in which they can create a district after it has been removed. ADOPTED RESOLUTION NO. 2006-32. 3. Appointment — City Employee William Burns, City Manager, stated staff is recommends the appointment of Shelly Robinson to the position of Accounting/Data Processing Clerk-Cashier. APPROVED. 4. Claims (126789 — 127064) APPROVED. 5. Licenses. APPROVED THE LICENSES AS SUBMITTED AND AS ON FILE. 6. Estimates. FRIDLEY CITY COUNCIL MEETING OF JUNE 12, 2006 PAGE 4 APPROVED THE FOLLOWING ESTIMATES: Maertens-Brenny Construction Company 8251 Main Street N.E. Fridley, MN 55432 Locke Park Water Treatment Plant Improvements Estimate No. 4 ...................... $ 35,114.85 Park Construction, Inc. 500 - 73rd Avenue N.E. Suite 123 Fridley, MN 55432 2006 Street Improvement Project No. ST. 2006-1 Estimate No. 1 ...................... $149,487.35 Concrete Idea, Inc. 13961 - 44th Lane N.E. St. Michael, MN 55376 Concrete curb, gutter, etc i.T„ crr �nnti i projeCt #365 ��,�-r Estimate No. 2 ...................... $ 26,771.19 MOTION by Councilmember Barnette to approve the consent agenda as presented. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. ADOPTION OF THE AGENDA: MOTION by Councilmember Barnette to approve the agenda with the addition of Item 11A. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. OPEN FORUM (VISITORS): Pete Borman, President of the Fridley `49er Association, invited everyone to attend Fridley `49er Days. FRIDLEY CITY COUNCIL MEETING OF JUNE 12, 2006 PAGE 5 PUBLIC HEARING: 7. Consider Suspension/Revocation of Rental Property License (Properties Located at 190 Island Park Drive, 191 Island Park Drive, 6551 Channel Road and 6571 Channel Road (Wards 2 and 3). MOTION by Councilmember Billings to waive the reading of the public hearing notice and open the public hearing. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE PUBLIC HEARING OPENED AT 8:09 P.M. John Berg, Fire Chief, stated this is a public hearing for the purpose of taking testimony and receiving evidence pertaining to the suspension or revocation of the rental licenses issued to Hyder R. Jaweed for Sunshine Management. Councilmember Billings asked Chief Berg in the event the City Council either suspends or revokes the rental license for any of these four properties, will any current renter be forced to move out of their dwelling as a result of that suspension? Mr. Berg replied saying as a result of suspension or revocation of the license, the City Code does not allow them to vacate the current tenants. Any vacated units of course will not be allowed to be rented in the future. In the event they have a building where a unit is uninhabitable for whatever reason, usually life safety reasons, then they ask people to vacate. Councilmember Billings asked if there were any particular units in any of the buildings that he is aware of that have any life safety problems. Mr. Berg replied, not that he was aware of. Councilmember Billings said if a tenant moves, the landlord will not be able to re-rent that apartment to somebody else until he comes and gets a new license. Mr. Berg stated staff requested this public hearing due to the increasing number and severity of housing code complaints and issues occurring at these buildings. Fridley City Code, Chapter 220, Residential Rental Property Maintenance and Licensing, applies to all buildings which are rented in whole or in part as a dwelling for persons other than the property owner's family. The City believes that providing for the public health, safety, and welfare of its citizens mandates the existence of a rental property licensing and maintenance program which corrects substandard conditions and maintains a standard for rental property. Mr. Berg said that since the summer of 2005, Fire Department inspectors have been out to the buildings numerous times, inspecting complaints. This has resulted in multiple correction orders in multiple timelines for compliance. The buildings at 190 and 191 Island Park Drive were due to be inspected in 2005. The rental inspection division had made arrangements with the owner representative to do a complete inspection of each property for the purpose of putting all FRIDLEY CITY COUNCIL MEETING OF JUNE 12, 2006 PAGE 6 correction items on the same timeline. The initial inspection of 190 and 191 Island Park Drive was started on December 13, 2005. Major problems were found with Apartment No. 5 at 191 Island Park Drive. The City building inspector posted Apartment No. 5 as not habitable, which it currently is. The attorney representing Mr. Jaweed stopped the initial inspection. After some discussion, the inspection was completed on December 21, 2005. Their first follow-up discussions were conducted on January 30 and February 7, 2006 (25 days after the initial inspection). Staff sent a written response to the owner's attorney summarizing the City's policy on time e�tensions. A time e�tension was granted to March 8, 2006, but permits needed to be pulled and all correction orders needed to be completed. Of all properties inspected on March 8, 2006, 120 uncorrected items were noted and permits had not been pulled. His office received a call from the owner's attorney the third week of March, and he asked what the City would be doing. They informed him the City was preparing to recommend revocation of the owner's rental licenses on all four properties. On March 21, 2006, the City sent the owner and the owner's attorney a copy of a correction order following the March 8, 2006, inspection. On May 23, 2006, pursuant to Section 220.13.9(a), a 20-day notice was given to the owner and occupants. They sent an e-mail to Sunshine Management, posted the notice on the front and rear entry of all four buildings. A copy was also mailed to the owner and to all tenant addresses. Mr. Berg stated on June 9, 2006, the City conducted follow-up inspections: at 190 Island Park Drive, Terry Kanis, the owner's representative, stated that Mr. Jaweed was not owner of this building anymore. No inspection was conducted at this property. The City has no idea how many uncorrected items there are. A building permit for windows and doors in the amount of $1,100 was issued on May 15, 2006. Re-inspection fees were paid on June 9, 2006. A water bill in the amount of $2,323.49 was paid on June 9, 2006. Xcel has posted the building indicating they are preparing to turn off the power to the building. At 191 Island Park Drive, Terry Kanis, the owner's representative, again stated that Mr. Jaweed was not the owner of this building. No inspection was done on that property. No permits have been pulled as of this date. The re- inspection fees were paid on June 9, 2006. The water bill in the amount of $3,194.13 was paid on June 9, 2006. Again, Xcel posted the building stating they are preparing to turn the power off to the building. Mr. Berg stated regarding 6551 Channel Road, all code issues were corrected. Property documentation was submitted for the issue of the hot water heater. Reinspection fees were paid on June 9, 2006. A water bill in the amount of $1,859.29 was paid on June 8, 2006. Mr. Berg stated regarding 6571 Channel Road, the fence is still in disrepair as of 9:00 on June 9, 2006. Community Development has a written correction letter and an Anoka County citation for failure to provide screening between R-1 and R-3 zoned properties. Mr. Kanis or his representative states that Mr. Jaweed does not own the fence and contends it is the neighbor's fence. A water bill in the amount of $1, 822.90 was paid on June 8, 2006. Mr. Berg stated, in summary, 190 Island Park Drive needs to obtain a plumbing permit for the 45 correction items that need to be reinspected; 191 Island Park Drive, needs to obtain permits for plumbing and electric in the building and there are 68 items that need to be inspected; all items have been corrected at 6551 Channel Road; and 6571 Channel Road needs to correct the screening/fence issue that Community Development is working on. At this time since the FRIDLEY CITY COUNCIL MEETING OF JUNE 12, 2006 PAGE 7 Sunshine Management ownership is either unwilling or unable to comply with the correction orders, staff recommends that the City Council revoke the rental property licenses for all properties currently issued to Hyder R. Jaweed, d/b/a Sunshine Management. He also added that this afternoon they did receive paperwork and license transfers for the property on Island Park Drive that indicate they no longer own that property. Mayor Lund asked if that is for both properties at Island Park Drive. Mr. Berg replied, 190 and 191 Island Park Drive. Councilmember Billings asked if the change in ownership changes the fact that there are problems with the properties. Mr. Berg said it does not. Councilmember Billings said if they were to suspend or revoke the license at those properties, no one would be forced to leave the properties. Any vacant properties could not be rented until such time as the new owner corrected the problems and applied for a license as a new owner. Mr. Berg agreed. Councilmember Billings said if they apply for a license transfer, they have to meet all the requirements of the property in order to get that license. Mr. Berg replied, that is correct. Councilmember Billings said by suspending the license, they are not going to harm the current residents. The only thing it is really going to do is stimulate the purchaser to get things done more rapidly so that all of the units are available for rent. Mr. Berg said he believed that to be true. William Burns, City Manager, asked if the contracts had been sold on contract for deed. Mr. Berg said he believed that to be true. Dr. Burns asked if that constituted a change in ownership. Fritz Knaak, City Attorney, replied technically, contract for deed is not an actual transfer of the fee ownership. Councilmember Bolkcom asked about the complaints, what was wrong with Apartment No. 5, and if anyone was residing there. Mr. Berg stated Apartment No. 5 has significant damage to the bathroom area. There have been a lot of complaints about water leaking into Apartment No. 1. When they were allowed entry FRIDLEY CITY COUNCIL MEETING OF JUNE 12, 2006 PAGE 8 into Apartment 5, they discovered that most or all of the sheetrock was missing in the bathroom, and water was leaking in there. Repairs were done with no permits, so the Building Inspector posted that unit. To the best of his knowledge, that unit is vacant. Councilmember Bolkcom asked what some of the other issues were. Mr. Berg said the interior common areas in 190 Island Park Drive; combustible storage in the utility rooms; holes in walls in the common areas which are significant in terms of fire spread; fire e�tinguishers that were not serviced and discharged; fire doors that did not close and latch; doors and windows on the units that did not lock; gas shut off to a stove; holes in doors; missing hardware in doors; sheetrock that was damaged from the water and falling down; leaking plumbing; work done without permits; damaged electrical outlets; missing stove controls; stoves that were lacking shutoffs within three feet; smoke detectors that were not working; tape covering exhaust fans; damaged caulking; and missing switch and outlet covers. Councilmember Bolkcom asked if the items regarding the fire e�tinguishers and shutoff valves are not enough for someone to say that people should actually not live in those apartments. They are issues that should be dealt with. Fire Chief Berg stated management took care of the life-safety issues the first time around. He said they were maintenance issues. They started receiving complaints from the residents at 190 and 191 in September or October. For example, in October 2005 they received a complaint from Apartment No. 2 in building 191. When they get a complaint, they ask the tenant if they have notified the owner. They require a two-week notice. In some cases where they believe there are safety issues they go out immediately. They also ask if they are under an eviction notice, because a lot tenants will do damage in those situations. At that point, they go and conduct a complaint inspection. Once they have verified the complaint, they write a correction order which is delivered. Councilmember Bolkcom asked if it was done by registered mail. Mr. Berg replied by U.S. Mail. They have 30 days in which to correct the issues unless, for example, there is an issue with paint during the winter. After 30 days, they go back and re- inspect. They consider that their second inspection. If it is not complete, they have another ten days. They charge for the third inspection and for each inspection after that. The re-inspections are done in 10-day intervals. Jon Peterson, Attorney for Hyder Jaweed, said he would encourage Council to make a distinction between the Island Park properties and the Channel Road properties. He asked the City Attorney if he would agree that a Contract for Deed is a financing mechanism, and it effectively transfers equitable ownership and, for all practical purposes, tax ownership to the new owner. Attorney Knaak replied, yes, as a practical matter, that is very often the case. FRIDLEY CITY COUNCIL MEETING OF JUNE 12, 2006 PAGE 9 Attorney Peterson stated he knows in this particular case the transfer of the Island Park Drive properties was done pursuant to Contract for Deed for the purpose of financing the owner's acquisition of the two Island Park Drive properties. For all practical purposes, Grant Rudolph, the purchaser of the property, is the owner of 190 and 191 Island Park Drive. It is his understanding that he has plans to engage in substantial renovations of those properties. As part of the Contract for Deed documentation, he has agreed to assume all outstanding obligations that the City has with respect to those properties. His clients had a difficult challenge with the Island Park properties when they acquired them. They acknowledge there were problems and they decided that the most expedient way of addressing those problems was to transfer the properties to someone who would be making improvements to the properties. Councilmember Billings stated they can stipulate that they will review each property as a separate entity in making any determinations. Councilmember Bolkcom asked if he had some documentation. Attorney Peterson stated he is represents Mr. Jaweed, and he did not bring a copy of the Contract for Deed for Council. He has provided those documents to John Crelly of the Fridley Fire Department. Mayor Lund stated said hopefully the sellers have disclosed to the buyers that their licensing is in jeopardy with a potential revocation or suspension. Attorney Peterson stated it is his understanding the new owner has been in contact with the Licensing Department and was aware of the issues prior to execution of the Contract for Deed. He said with respect to the Channel Road properties, it is his understanding, that there are no issues with respect to the property at 6551, and he believed there was only one issue related to the 6571 Channel Road property. All other properties that have been cited by the City have been corrected and there are no additional issues other than a particular issue with respect to a fence. The initial citation that was issued was for a violation of the fence on the south side of the property. On the south side of the property there is a chain link fence and, pursuant to an inspection on June 9, Terry was told that fence was actually fine. There is a fence on the north side of the property which is in disrepair which, according to his client, is not on his property. He was informed today by Scott Hickok of the Community Development Department, that they need to have an 8-foot fence. This is the first indication of what they need. He said they need to talk with the City to find out what the issue is and where the fence is. His client definitely desires to get the 6571 Channel Road property in compliance with the City and to cooperate with the City. Mayor Lund asked if there had been proper notice on this issue. Mr. Hickok said they send a letter after inspection that confirms there is a problem on the site. The first letter creates a time for correction. Then there is a re-inspection. If necessary, a second letter is sent and it further clarifies the issues and may give a short grace period before a citation is issued. He stated for property owners who own R-3 property, it is incumbent upon them to know what the laws are governing the property and they do need to screen. It has been a long- FRIDLEY CITY COUNCIL MEETING OF JUNE 12, 2006 PAGE 10 standing rule, that if you own an R-3 property adjacent to an R-1 property, you need to have a fence that screens your property from that adjacent property. You could landscape or have a combination of landscape and fence. Any confusion as to the fence would have been clarified if the owner had wanted to correct the problem. It is a long-standing problem that property issues do not get taken care on this property. This is not the first code complaint or issue they have had. Attorney Peterson said the notices were not sent to the address of Mr. Jaweed and he did not receive the notices. Mr. Jaweed told him the fence is on the adjoining property owner's land. Mayor Lund asked staff about any stipulations inherent with the licensing of these rental properties about fences. Mr. Hickok replied it is the responsibility of the R-3 property owner to properly screen their property. Staff has a different opinion as to which property this is on. belongs to the complex. The fence is sitting on the retaining wall Channel Road apartments. Staff contends this fence for the parking lot of the Mayor Lund commented and irregardless of whose fence it is, you can certainly do a survey or whatever to prove whose property it is on. The fact still remains that the R-3 property owner is responsible to properly screen between his property. Even if it is on somebody else's property, it does not relieve the obligation of the R-3 property owner to screen his property, so in addition, he should be putting up a new fence or another screening or something approved by the zoning staff for proper screening. Attorney Peterson replied he has spoken with his client about this. He said he asked his client if he would be willing to put up an 8-foot fence in the ne�t 30 days to comply with the zoning code, and his client said he would be happy to do that. Mayor Lund asked where the notices were being sent. Mr. Hickok replied to Mr. Jaweed's home in North Oaks. They did verify that address through another city. Mr. Jaweed has a number of different company names, and a number of different potential addresses. They find in talking with other colleagues in other cities, the most success comes with sending it to Mr. Jaweed's home. Mayor Lund asked if the letters had come back. Mr. Hickok replied, no. Attorney Peterson stated his client told him the last letter he received which he thinks was last week from Mr. Hickok did come to his address, but the previous letters were sent to a former management company that were received but not forwarded by the management company. Mayor Lund asked attorney Peterson if the management company is one his client pays for services. FRIDLEY CITY COUNCIL MEETING OF JUNE 12, 2006 PAGE 11 Attorney Peterson replied he believed that is the case. Councilmember Bolkcom asked when someone applies for a rental license, are they required to give the City some type of address where they can actually communicate with them? Mr. Berg replied, yes. Councilmember Billings asked, upon renewal, is there a requirement they provide the City an address? Mr. Berg replied, yes. Councilmember Billings asked when were the licenses last renewed for Channel Road? John Crelly, Assistant Fire Chief, stated he believed the renewals went out in late October of last year. Councilmember Billings asked Mr. Hickok if he has sent a letter to the owner of the R-1 property adjacent to this property regarding the fence. Mr. Hickok said there is a construction project happening ne�t door and they have almost daily visits. Councilmember Billings stated in terms of the code enforcement issue, they should probably send them a letter since they have reason to believe the fence is possibly on their property stating they may have a code enforcement issue as well. He asked Attorney Peterson if he is willing to stipulate on behalf of his client that if they were to table this for 30 days, that during that time his client would be able to remedy the fence issue on his property and to repair, replace, or construct a fence that meets the City Code. Attorney Peterson said he asked his client this afternoon and he said they are willing to do that. Councilmember Billings asked if he is willing to stipulate on behalf of his client that this would be done if they were to table this for 30 days. Attorney Peterson said he was. Councilmember Billings asked if there were open issues other than the fence at 6571. Mr. Berg said none that he was aware of. Councilmember Billings asked Mr. Hickok if he was aware of anything at 6571 other than the fence issue. Mr. Hickok replied the fence is the only issue he is aware of. FRIDLEY CITY COUNCIL MEETING OF JUNE 12, 2006 PAGE 12 Councilmember Billings asked Mr. Hickok if he was aware of any issues at 6551 Channel Road. Mr. Hickok replied, no. Councilmember Billings asked Mr. Berg if the issues at 6551 had been remedied. Mr. Berg said they had. Councilmember Bolkcom expressed her concern about the City carrying the large water bills and what is going to happen with the ne�t license. Attorney Peterson expressed his concern with revoking the license. He said the building gets posted and no new tenants can move in. The best tenants would move and they would be left with tenants who are more challenging. So you end up with a building that is faced with challenging tenants and you are also put in a place where you do not have sufficient rental dollars to operate the building. You have to start over with your whole tenant base. Mayor Lund said he thinks Mr. Peterson's client should have considered what would happen. He is letting is letting his own properties run down so he is not going to attract good-quality tenants. Attorney Peterson replied with all due respect he thinks they are talking about the Island Park Drive properties which have been sold. He does not think there is the same degree of code violation. Mayor Lund stated he is hearing a lot of history about his client, not just on one property, but others too. He heard in the presentation the utility company is ready to shut off the gas. He has had a history of not paying his utility bills with the City. Councilmember Billings asked whether there was a representative in the room for Mr. Rudolph, the new owner of the Island Park apartments. Bercina Dackery, 6551 Channel Road, Apartment No. 1, approached and stated she has pictures of her apartment showing that her ceiling is leaking. She has been reporting this and they still have not come out and fixed anything on it. She has letters from her Section 8 inspector that indicate they were supposed to fix things, but they were never fixed. This has been going on for months. She said she has talked to the owner. MOTION by Councilmember Bolkcom to receive a three-page letter from Pat Wolfe, Section 8 Coordinator. Seconded by Councilmember Billings. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Councilmember Bolkcom gave a summary of the items listed in the letter, including secure laundry room drain cover, properly attach water softener overflow tube to the ceiling, replace FRIDLEY CITY COUNCIL MEETING OF JUNE 12, 2006 PAGE 13 missing outlet covering near the breaker boxes, entry system was plugged into the outlet with a missing cover, attach cloth pull string to chain string on light fi�ture near the boiler, properly secure hallway carpet bar to the floor with adequate amount of screws, carpet bar is located outside the bedroom and bathroom, and properly secure hand railing to the wall, both sides of the building going to the wall, etc. Mayor Lund asked if this information would get passed to other departments. Mr. Berg stated they do not always get information from Section 8. John Crelly, Assistant Fire Chief, approached and stated with regard to Unit #1 his understanding of how the Section 8 program is supposed to work is there is a certain level of privacy or separation of City government and the agency that is providing dollars for affordable housing. Mayor Lund asked when the apartments were inspected. Mr. Crelly said they have been out a number of times for various complaints. Mayor Lund asked if they only do it on a complaint basis. Mr. Crelly said they are trying to inspect licensed properties every year. Currently, once every four years they do a complete inspection of the building. They are currently stepping up their efforts because they are seeing issues that are developing in the common areas. Every other year a building will be inspected and one inspection will be in common areas only and the other time they come out will be a complete inspection. Mr. Berg stated the inspection of 6551 Channel Road was initiated by complaint on October 14, 2005. The fourth follow-up was on March 8, 2006, and they were back looking at open issues on June 9. Councilmember Bolkcom commented she felt the departments should be working together. Mr. Hickok replied that is true and that is how the process typically works. Information that is not shared is specific client information. Mr. Crelly stated in regard to Section 8 does the own inspections and signs off on those inspections. The Fire Department does not typically see them unless there are issues with the Fire Department. Susan Coles, 6551 Channel Road, Apartment 2, said they are having a problem with their bathroom ceiling. The tub overflowed above them and leaked on their ceiling. It has been going on for a long, long while. It started on March 18. She called the apartment caretaker, Earl. He came down, he took the ceiling down, and the wood is separating because it has been wet so long. She has tried to address this as much she can. The bedroom is on the lower level, and every time it rains really hard through the sides of the building, the water comes in and soaks the FRIDLEY CITY COUNCIL MEETING OF JUNE 12, 2006 PAGE 14 carpet. She has told the caretaker and he said he would take care of the problem. She said she has heard this for 2'/z years. Mayor Lund stated so they have not made a lot of attempts to address the issues that she has. Ms. Coles stated when her carpet first got wet in the bedroom, they had to take out a section of the wall. They got that done right away but the bathroom ceiling is still not fixed. Kevin Broughton, 190 Island Park Drive, Apartment 8, stated he has lived there for about two to three months. He believed he was deceived. He was told by another company, Center Pointe, that they were remodeling the whole building and everything was going to be just great. Now when he calls Center Pointe for anything, they tell him they do not have anything to do with that building. Mayor Lund asked if Center Pointe was the management company. Mr. Broughton replied it is another apartment complex they own over in Brooklyn Center. Regarding the livability and quality of life issues he sees around the building, there is garbage lying around. They do not have a caretaker. They are starting to get vermin, roaches and mice. There are numerous electrical code violations. He is a maintenance man by trade. He has been performing his own repairs because no one is ever around. They do not have a security door and all the other units do. There are no bells to ring or anything. Councilmember Bolkcom asked Mr. Broughton when he was told they were going to remodel, did they indicate how soon? Mr. Broughton replied the information he received was they were doing them one by one. When he came in there they had started to repair some of the units. Csaba Barabas appeared on behalf of his brother, Tibor Treaumann, 190 Island Park Drive, Apartment 1, and stated his brother and his mother and sister reside there. Their main concern is Apartment 5 which is above them. There has been water coming in from the ceiling for a long time. It started with a hole in the ceiling at first. The ceiling progressively got worse, and pieces of the ceiling started falling in. His brother called 911 two times. One time the Fire Department and police officers were out and they took pictures. The ceiling completely fell that time. There is also no safety door. He actually bought his own safety lock and he put it on the door of the apartment because the door was so loose. You could jiggle it a few times and gain entry into the apartment. Mayor Lund asked if the leaks in the ceiling were from plumbing or a roof leak. Mr. Barabas replied the plumbing above had a water leak The way the police gained entry into the apartment was by kicking in the door because they did not know what was going on because there was so much water coming from the ceiling. Water is still coming down from the ceiling and the floorboards. The boards above are cracked to the point where they can see light showing from up above. He is concerned that the boards might crack and fall on top of something. There are broken windows that leak and have never been fixed. In his mother's bedroom, water FRIDLEY CITY COUNCIL MEETING OF JUNE 12, 2006 PAGE 15 comes in and the carpet gets wet. He states every time he is there, something new is wrong in that building. Kim Sherva, 6571 Channel Road, Apartment 11, and she just moved there a month and a half ago with no idea about this. Needless to say when she saw the notice on the front door, she was a little upset once she found out there were numerous violations. She asked if the City has been in her building. The handrails are still not on the building. When they first removed it they left the strips behind with the nails. They have small children, and she had to tell her two small sons be careful going down the stairs. She knows there is another family in the building that has holes in their apartment. She said she knows they are planning on raising the rent to close to $700 a unit. She feels she has been deceived. There are 2 or 3 missing outlet covers, and the lamp is not on in the kitchen. In Apartment 4, there is mold in the closet. It is not just the fence. She stated she is sure several of the tenants would be happy to have them come and take a look at their apartments and go inside and actually see the living conditions. She is happy the Fire Department caught some of it but honestly she thinks there is more they should see. Jameel Robinson stated he used live at 191 Island Park Drive, Apartment 3, and they had the same problem with water in the bathroom. Brian Pavlak, 191 Island Park Drive, Apartment 4, stated he lives in the lower level, he has a leak in his shower and the ceiling is starting to peel back off the sheetrock because it leaks so much, usually whenever the tenant above him takes a shower. There are some issues with Apartment 5. It has mold. You can smell it even in the hallway. The owners have been very negligent and he has not seen them fix anything around those complexes. Councilmember Billings stated it is his understanding that staff inet with the new owner a few weeks ago. He thought staff had said he has applied for a license and building permits. Mr. Hickok stated they have met with Mr. Rudolph and he indicated he was interested in buying 190 and 191 Island Park Drive, as well as 151 Island Park Drive. He did discuss renovation of the units. He talked about cleaning them up, changing the appearance of the building, adding landscape presence to the outside of the building, and potentially looking at some other options and features he would do to the building. They do not know Mr. Rudolph. He does not own other properties in the City of Fridley. Jonathan Jones, 6551 Island Park Drive, Apartment 9, said there are no screens on his windows and he has a 4-year old and a 7-month old. There is no smoke detector in his apartment. The water leak from the second floor down is actually caused from their apartment because there is a leak in his bathtub. He said something to Eric who stated they would have someone out there to fix it and they have not. His back door will not open from the inside. The top piece is rotting and the whole thing is going to fall in. His front door was kicked in before and the whole door frame is broken off. He has said something about this. Ms. Coles approached again and asked whether they are at any time able to use a vacant apartment for storage. They are using Apartment 3 ne�t to her to store refrigerators and stoves and she has called about this. One weekend the keys were left in the door and the door was left open and there was a lawnmower in the hallway in the apartment. They have one of the FRIDLEY CITY COUNCIL MEETING OF JUNE 12, 2006 PAGE 16 windows sheetrocked with just a square in it to look in through. They have been told time and time again not to have the lawnmower in there. She told Eric it could not be stored inside the apartment. He said he does not have the lumber to build a shed. Councilmember Billings stated he would consider the possibility of continuing the public hearing and requesting the Fire Department send a letter to each tenant at 6551 and 6571 requesting an opportunity to come in and make an inspection so they can further find out just what problems exist. If he has correctly heard the testimony from Deputy Fire Chief Crelly, while they have been responding to complaints and may have been in the common areas, they have not had a full-blown inspection in each and every unit for at least three years. They have heard from a number of residents from both properties indicating there are additional problems that have not been brought to the attention of the Fire Department. Continuing this would allow the landlord 30 days to determine what kind of problems they have and to immediately start correcting them and to provide them with a plan of attack on correcting all of them. He asked Attorney Peterson if this sounded like something his client could agree to. Attorney Peterson stated he attests. Councilmember Bolkcom inquired if they were also suggesting the same thing at 190 and 191 because they have heard a fair amount of issues related to that property also. There appears to be some safety issues here with no smoke detectors, etc. Councilmember Billings stated regarding those buildings, they do not have a representative of the ownership at the meeting. Mr. Knaak stated his understanding of the purpose of the proceedings tonight is in fact just to do a public hearing in any event. Had the matter been on placed on an agenda for action later, you could have done it. He would suggest their soonest opportunity for action would be the ne�t City Council meeting. Councilmember Billings asked if they could they close the public hearing relative to the 190 and 191 properties so they could take action at their ne�t meeting and continue it relative to the Channel Road apartments. Mr. Knaak replied to the e�tent the actual hearing is actually a combined hearing related to several different licenses, not just one general license, you could do that. Although, again, they may decide to afford themselves more flexibility by leaving both issues open. Councilmember Bolkcom stated she believed that she would like to continue that portion of it. She thinks there are enough issues and continuing the public hearing also gives them an opportunity for staff to communicate with the owners. Councilmember Barnette stated he would like to have all four included. Mayor Lund stated he felt they were being overly generous. He thinks there is sufficient testimony here, whether they continue this public hearing or whether they take a quicker stance FRIDLEY CITY COUNCIL MEETING OF JUNE 12, 2006 PAGE 17 on revocation or suspension. Regardless, he thinks they have the ability, whether they suspend or revoke at the ne�t meeting, to go in and do the inspections and they will get a lot of information out of those inspections as well. Whether they expect Mr. Jaweed or Mr. Rudolph or whoever to comply; historically they have not done it. Councilmember Bolkcom stated this would give an opportunity to have the Fire Department inspect the building and also get more information to help the tenants get some of their problems taken care. Revoking the license is not going to help a lot of their issues. Councilmember Barnette stated it puts the owners on notice that they are very serious about this. MOTION by Councilmember Billings to continue the public hearing until the June 26, 2006, and have the agenda contain four distinct action items: one for the revocation of the license for each of the four properties. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE PUBLIC HEARING CONTINUED AT 9:49 P.M. MOTION by Councilmember Billings requesting staff to send out letters to each of the tenants of the Channel Road properties requesting an opportunity to reinspect those properties as soon as possible so they can have additional information for the continuation of the public hearing. His motion does not include the 190 and 191 Island Park Drive properties there is sufficient information to revoke the license for those properties. Mayor Lund asked if they have the ability under the rental licensing code to do the inspections. He asked if they sent a letter beforehand when anticipating going into an apartment. Mr. Berg said if they have reason to believe there are issues within those buildings, they have the right to request an inspection at any time. Mayor Lund asked if they had reasonable cause from the testimony presented at this meeting. Mr. Berg said he thought that was correct. He would recommend they just send a letter to the property owner requesting an inspection of the entire building. Councilmember Barnette stated in the past, they have had a problem when they have asked to go into tenants' apartments and the owner has said, no. Councilmember Billings stated if they send a letter to the tenant, asking them permission to come into their premises to do an inspection, and the tenant contacts the City and invites them onto their premises to do an inspection, he believes they have a right to do it. They have a lease that is signed that says it is their property to use. Councilmember Barnette stated he knows in the past they have had problems where the owner has denied the City going into those. FRIDLEY CITY COUNCIL MEETING OF JUNE 12, 2006 PAGE 18 Councilmember Billings said it appears that the property owner has not been cooperative with allowing inspections. He thinks they should go to the ne�t step and get the cooperation of the tenants. Mr. Knaak stated if you are there as an invitee of the tenant, there is no issue. Where these problems have arisen in the past is in situations where there has been non-cooperation on the part of the tenants and the City nevertheless under its ordinance is seeking to gain access via the landlord to inspect the units. There has never been a problem in terms of access if in fact the City is invited in. Mayor Lund stated he felt that according to Mr. Jaweed's attorney, Mr. Jaweed is gungho about working with these issues, so he would think if they sent a letter to the property owner that he is going to fully cooperate and allow inspections to occur. He is not against sending a letter to the tenants, it is not a huge dollar issue for him, but he wants to make sure they are going about it in the proper fashion. Mr. Chief Berg stated the only issue with sending a letter to the tenants, is they do not know who the tenants are. Councilmember Billings suggested they address the letters "Occupant of Apartment No. " UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION by Councilmember Bolkcom to do the same for the tenants at 190 and 191 Island Park Drive. Dr. Burns asked if they have the manpower to inspect all four buildings in two weeks. Councilmember Billings stated they have 120 open issues on 190 and 191. He does not think there is any question that there is enough information there as to whether there is reason to revoke those two license. He does not know what inspections of 190 and 191 would do for them except to create additional information when there is already satisfactory information to go for revocation on those two. Councilmember Bolkcom stated said revocation takes care of any apartments that are not rented, but there are still other related issues. She has not seen anything being resolved because it sounds like some of this stuff has been going on for some time. Seconded by Councilmember Barnette. Mayor Lund stated he thinks it is going to be e�tensive and they may have to change their thinking and allow a little more time, which delays the process. Councilmember Bolkcom asked how long it takes to inspect an apartment. FRIDLEY CITY COUNCIL MEETING OF JUNE 12, 2006 PAGE 19 Renee Long, Firefighter for the Fire Department, stated she has been the primary inspector at the Island Park apartments. The initial inspection was an all-day process. For a single apartment that has no problems, it can be a very rapid inspection, but if they find problems, it takes time to document those issues. If there is a tenant there, they try to ask if there are any problems or concerns they want the City to be aware of. It would take at least one full day for each building and that is assuming they do not have other inspections or calls during that time. Councilmember Billings pointed out that is also assuming that you can get into all of the apartments on the same day. Councilmember Bolkcom rescinded her motion. Ms. Long stated regarding the initial inspections, they will ask the owner or his representative to accompany them into each apartment. They have a key to each apartment and it is for protection of the owner and for themselves to have somebody accompany them. If they ask each individual tenant to pick a date and time that works for them, they could be all over the board in scheduling something. She thinks that having the owner accompany them would certainly speed things up. Picking one day for each building and inspecting in an orderly fashion would make the most sense. MOTION by Councilmember Bolkcom for the ne�t agenda packet to have a detailed list of the 120 items along with all the issues commented on by people who were present at this meeting. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 8. Consider Revocation of Special Use Permit #03-14, for Central Auto Parts, Generally Located at 1201— 73 �/z Avenue N.E. (Ward 2) MOTION by Councilmember Barnette to waive the reading of the public hearing notice and open the public hearing. Seconded by Councilmember Billings. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE PUBLIC HEARING OPENED AT 9:59 P.M. John Buzick, 661 — 207th Avenue N.E., stated pursuant to statute, he should have received notice which he did not. Mr. Hickok stated he did this afternoon talk to Jerry Haluptzok who is the operator/owner of Central Auto Parts and he indicated that he did not receive the notice. He did talk to staff about that and they did send a notification to the newspaper. A generic notification that is the same notification they would do for an ordinance or amendment or anything else that has city-wide implication. FRIDLEY CITY COUNCIL MEETING OF JUNE 12, 2006 PAGE 20 Mayor Lund stated they sent notice to the Fridley Focus and that is documented that they have the two notices in the paper. Mr. Hickok replied, yes. Mayor Lund stated and no letter was sent to the individuals. Mr. Hickok replied he did talk to Mr. Buzick on the telephone, and he did talk to Mr. Haluptzok a few weeks prior, and indicated that June 12 was the time that Mr. Haluptzok would be coming before the City Council. Mayor Lund asked the City Attorney if they are required to send personal notice to the property owner or the license holder other than just the general notification for the general public. Attorney Knaak replied because it is a public hearing they are required to publish the notice. That was done as he understands it on at least two occasions. He does not believe in this case that there is any requirement in the City's ordinance for mailed notification. Tom Malone, attorney for Central Auto Parts and Mr. Haluptzok, stated frankly he is not sure of the merits because they did not have an actual notice. He believes there is an obligation not only to publish, but under Chapter 462 there is an obligation to notify the owner of the property. Mayor Lund replied they want to be fair, but they are all here so they know about it, and he knows that Mr. Buzick knew about it because there was a telephone message about a week ago at his office. He is certain it was regarding this. He knows that staff has been over to the facility and that this was an upcoming thing. They also did a 90-day reprieve for the license. Attorney Malone stated he does not know anything about it, and with due respect he has to disagree with him. Just because they know about it and they are there, does not mean they had adequate notice. He thinks the statute requires, 10 days notice and the under the principles of due process, adequate notice, in order to afford a meaningful opportunity to be heard, has to be given. So he is constrained to enter a formal objection to these proceedings and ask they hold it over to a later date in order to give them an opportunity to be prepared to come forward to address meaningfully what the contentions are going to be. Councilmember Billings asked Attorney Malone if he represents his client. Attorney Malone replied, of course. Councilmember Billings asked if he was prepared to take notice on behalf on his client. Attorney Malone replied, yes. Councilmember Billings asked Mr. Buzik if he was an officer of the corporation. Mr. Buzick replied, yes he is. FRIDLEY CITY COUNCIL MEETING OF JUNE 12, 2006 PAGE 21 Councilmember Billings asked him if he was prepared to take notice on behalf of his corporation that they are going to have a hearing at a future date. Mr. Buzick replied, yes. Councilmember Billings asked Attorney Knaak if they were to continue this hearing for two weeks, rather than closing and republishing, and these gentleman take notice of the fact the hearing will be in two weeks, would that be satisfactory compliance with the statutes. Attorney Knaak replied, leaving aside that question of it already being okay, he thinks if all parties are in agreement that would operate as a waiver. Councilmember Billings asked Mr. Buzick if that works for him. Mr. Buzick replied, yes. Mr. Hickok stated he would ask Jerry Haluptzok. He is the owner of Central Auto Parts. Mr. Buzick is the owner of the underlying land. Councilmember Billings pointed out Attorney Malone is the attorney for Mr. Halupsik and he said he is going to take notice on behalf of his client. Attorney Malone asked to be provided with a hard copy of Mr. Hickok's power point presentation. Mr. Hickok stated he would be glad to provide the agenda item as well as his power point presentation as a handout. Councilmember Billings asked to have current addresses left with Mr. Hickok. MOTION by Councilmember Billings to continue the public hearing to the ne�t City Council meeting on June 26, 2006, and direct staff to have on the agenda as an action item, an item for revocation. Seconded by Councilmember Barnette. UPON A VOICE VOTE, MAYOR LUND, COUNCILMEMBER BARNETTE AND COUNCILMEMBER BILLINGS VOTING AYE, AND COUNCILMEMBER BOLKCOM VOTING NAY, BY A VOTE OF 3-1, MAYOR LUND DECLARED THE PUBLIC HEARING CONTINUED AT 10:10 P.M. 9. Consider 2006 Mill and Overlay Project No. ST. 2006 — 2. MOTION by Councilmember Barnette to waive the reading of the public hearing notice and open the public hearing. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE PUBLIC HEARING OPENED AT 10:11 P.M. FRIDLEY CITY COUNCIL MEETING OF JUNE 12, 2006 PAGE 22 Jon Haukaas, Public Works Director, stated this is a mill and overlay of Matterhorn Drive and 73rd Avenue. It has been determined that simple pothole patching is no longer sufficient to maintain a safe travel surface in several areas of the City. They have put together a multi-year program of doing overlays throughout the City to remedy that concern. This is the first project to resurface two sections of streets in Fridley of this program. Notice of this meeting was published in the last two editions of the Fridley Focus and individual letters were mailed to the properties on May 25. The project consists of removing the top two inches of deteriorated asphalt, repaving the surface, and repainting the pavement markings. The project area in question is Matterhorn Drive, from Gardena Avenue to approximately 1,200 feet south where it meets the concrete streets, and 73rd Avenue from University Avenue to Able Street. Last year they did 73rd Avenue from Able Street to Old Central. This would be a continuation. The total estimated cost of the project is $57,338 for Matterhorn Drive and $220,935 for the 73rd Avenue resurfacing. These are estimates of what our most recent cost figures are for asphalt. Asphalt has gone up significantly this year but it is a necessary project, since 73rd Avenue is our most heavily traveled route maintained by the City in Fridley. Matterhorn Drive is in terrible condition. The cost will be funded partially by the City in the amount of $130,996. That is state-aid eligible so they would be using that account for our portion. Under the City's current assessment policy, $147,277 would be assessed to the adjacent properties. For the Matterhorn Drive portion, Totino-Grace High School owns 42 percent of the frontage on Matterhorn Drive and under existing and most current assessment policies, they would, therefore, be assessed for that amount--42 percent of the total cost to resurface this road. The 15 residential lots that are addressed on Matterhorn Drive would be assessed a lump sum of $864 each. This is a prorated amount. Matterhorn Drive is actually 44 feet wide. This is what the cost would be for a standard 32-foot wide residential street, with the City of Fridley picking up the difference. For the 73rd Avenue project, there are four commercial properties on the south side, and 50 percent of the resurfacing cost would then be divided between those parcels based on their frontage. The remaining 50 percent, the north half would be paid for from City funds. This program will continue in future years to continue the necessary upkeep of our streets. Councilmember Bolkcom asked if there was an approximate cost in the letters sent out to the individual owners. Mr. Haukaas said there was. MOTION by Councilmember Barnette to close the public hearing. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE PUBLIC HEARING CLOSED AT 10:18 P.M. NEW BUSINESS: 10. Resolution Ordering Final Plans and Specifications and Estimates of Costs Thereof of the 2006 Mill and Overlay Project No. ST. 2006 — 2. FRIDLEY CITY COUNCIL MEETING OF JUNE 12, 2006 PAGE 23 Mr. Haukaas stated this is for the 2006 Mill and Overlay Project he just spoke about. This is the first resolution to order them to complete those plans, bring them back to them at the ne�t meeting for final approval and move on from there. It would be their opportunity to make any changes that would have been brought up at this public hearing. MOTION by Councilmember Billings to adopt Resolution No. 2006-33. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED. 11. Preliminary Plat Extension Request, P.S. #05-2, by Family Lifestyle Development Corporation, Generally Located at 1314 Mississippi Street, 1340 Mississippi Street, 6421 Central Avenue, 6441 Central Avenue and 6461 Central Avenue (Ward 2). Mr. Hickok stated as is consistent with City policy, if a plat has been granted in its first preliminary stage, that plat needs to come back within a six-month period and, if it does not, a request needs to be made by the petitioner. Mr. DeMello has made previous requests for e�tension. Mr. DeMello has been working with investors on the project and that has been a legitimate and consistent situation where they have granted e�tensions in the past. John DeMello, Family Lifestyle Development Corporation, stated they have had several investors who have come up with purchase agreements with contingencies that made it challenging to try and achieve the objective. They want the same project and they want to maintain its consistency and so they are still hunting for the right investor. MOTION by Councilmember Billings to approve the six-month e�tension to December 13, 2006. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 11A. Waive the $200 Inspection Fee for the Fridley `49er Days Fireworks Display. Councilmember Barnette stated this to waive the $200 inspection fee for the Fridley `49er Days festival fireworks display. MOTION by Councilmember Barnette to waive the fee. Seconded by Councilmember Billings. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 12. Informal Status Reports. Mr. Hickok stated with respect to the Hyde Park/Blueprint Homes project, the first three plans have come in from Blueprint Homes and those plans are being reviewed by building staff. They FRIDLEY CITY COUNCIL MEETING OF JUNE 12, 2006 PAGE 24 should see some groundbreaking very soon. The transfer of property will be happening within the ne�t week or 10 days, and the actual construction will commence shortly thereafter. He thinks people will be pleased with the design of the units which are very distinct and different planwise. It is what they were hoping for. Good quality homes. Councilmember Barnette asked what the price range was for the homes. Mr. Hickok replied he thinks initially the developer had indicated they were looking at the $300,000 to $350,000 range. That is consistent with the plans that they have seen come in. Mr. Haukaas stated as far as the street reconstruction associated with the Gateway West Project, they do have an advertisement out and are soliciting bids. They hope to award the bid at the ne�t City Council meeting. In regards to the City's street project, they have opened up the area south of Community Park and also several streets north of Hayes School. All the streets have been removed, the ground has been subcut, and they are just working on the storm sewer work primarily in the Pandora neighborhood. Councilmember Bolkcom said if people have questions regarding costs, they can call the Public Works Department. Mr. Haukaas said they could. There was an initial letter sent out with what the estimated assessment would be. That was a not-to exceed cost. That was at the first public hearing. They will hold to those numbers. People can call the Engineering Department. The Assessment Department also has those numbers. Councilmember Bolkcom stated there was a gentleman and one of his neighbors who said they never received one. Mr. Haukaas stated they were sent out with the invitation to the initial public hearing. They also do newsletters and walk them through the neighborhood, delivering them to every house. They have done several neighborhood newsletters for the areas they are specifically working on and will continue to do so. ADJOURN: MOTION by Councilmember Barnette, seconded by Councilmember Billings, to adjourn. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MEETING ADJOURNED AT 10:31 P.M. Respectfully submitted by, Denise M. Johnson Scott J. Lund Recording Secretary Mayor