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11/20/2006 - 00027728CITY COUNCIL MEETING CITY OF FRIDLEY NOVEMBER 20, 2006 The City Council meeting for the City of Fridley was called to order by Mayor Lund at 7:30 p.m. PLEDGE OF ALLEGIANCE: Mayor Lund led the Council and audience in the Pledge of Allegiance to the flag. ROLL CALL: MEMBERS PRESENT: Mayor Lund Councilmember-at-Large Barnette Councilmember Billings Councilmember Wolfe Councilmember Bolkcom OTHERS PRESENT: William Burns, City Manager Julie Jones, Planning Coordinator Rachel Harris, Environmental Planner Jon Haukaas, Public Works Director Richard Pribyl, Finance Director/Treasurer Fritz Knaak, City Attorney PUBLIC SERVICE ANNOUNCEMENT: Rachel Harris, Environmental Planner, informed Council about the 2006 recycling drop off the City of Fridley held over the past several months. There was quite a change in tonnage from 2005 to 2006 in terms of what was collected during the recycling drop off days. In 2005, the City of Fridley collected 9.4 tons compared to 221.3 tons of recycled goods in 2006. The items that are accepted at the drop offs are recycled and typically include electronics, appliances, florescent bulbs, scrap metal, construction, demolition debris and tires. Most often materials accepted at the drop off sites are common outdoor storage problems, hard to get rid of items or items that cost a lot of money to dispose. Ms. Harris stated that the reason for the growth is because there were more drop off days offered this year. In 2005 there were two drop offs offered compared to five in 2006. In 2006, a financial benefit was added as an incentive to residents. A recycling rebate came from the current recycling contract from materials gathered in the curbside recycling program. These materials earned money on the market and that benefit was passed on to the residents. The City used the recycling rebate to pay for the additional drop off days, offered reduced prices at the drop off sites and in some cases the drop offs were free. Ms. Harris stated that in 2006 appliances, electronics and florescent bulbs were collected plus three free electronics drop offs were allowed per household. In August, used furniture and scrap metal could be dropped off free of charge. In September, tires, car batteries, scrap metal, lumber FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 20, 2006 PAGE 2 and concrete were also collected free of charge. There was a wealth of electronics collected in the April recycling drop off and each resident was able to drop off three electronic items at no charge. In October, another electronic drop off was offered and again three free electronic items per household plus one appliance and car batteries at no charge. Later in October, more appliances, electronics, car batteries and tires were collected. Ms. Harris stated that the City hopes to continue the success from 2006. The exact plan for ne�t year is in the works but the City will have at least four events. Ne�t year, the City hopes to standardize the events and have the drop off sites more consistent as to what will be accepted. The recycling rebates will continue to be used to offer free or lower collection costs. Councilmember Bolkcom questioned if the City is limited in how they use the rebate. Ms. Harris replied that the City cannot, for example, reduce utility fees that residents pay on a quarterly basis for the recycling service. Due to the Score Funding Agreement with the County, the City is limited in how the rebate is used. Councilmember Barnette asked how the City of Fridley compares with the surrounding cities in the amount of recyclable items collected. Ms. Harris stated that surrounding cities receive a similar recycling rebate with their contractor for recycling services. In terms of the services that are offered, Columbia Heights has garbage and recycling service in which appliances and electronics may be collected at the curb. Spring Lake Park has two recycling drop offs a year and Coon Rapids offers monthly recycling drop offs. Councilmember Barnette asked if Columbia Heights contracts their garbage and recycling through one hauler and if appliances can be picked up at the curb. Ms. Harris stated that is correct. Columbia Heights residents pay for the garbage and recycling fees through the City. Fridley residents choose their contractor. Councilmember Bolkcom questioned how to get rid of old bicycles. Ms. Harris stated that if the bike is in usable condition, it can be donated to a charity. If not, the non-metal pieces can be taken off and the metal can be recycled with the scrap metal. APPROVAL OF PROPOSED CONSENT AGENDA: 1. Resolution Confirming the Statutory Level of Tort Limits. William Burns, City Manager, stated that LMCIT is asking us to expressly confirm by resolution that we are choosing to be insured within the State's statutory limits for cities. The resolution provides that it is Council's desire to be insured up to its statutory limits and not beyond. It also states that we are not waiving our statutory liability limits of $300,000 for a single claim and $1,000,000 for a group of claimants. Staff recommends Council's approval. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 20, 2006 PAGE 3 ADOPTED RESOLUTION NO. 2006-81. 2. Resolution Abating a Portion of the Assessment for Certain Properties within the 2006 — 1 Street Improvement Project. William Burns, City Manager, stated that when staff brought assessments for this project on October 23, there were a few assessments that had been estimated due to ongoing issues. At that time we told Council that we would be coming back at a later date with revised assessment figures for these properties. This resolution includes that information. Staff recommends Council's approval. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 3. Resolution Authorizing an Increase in Compensation and Changes in Certain Benefits for the 2007 Calendar Year. William Burns, City Manager, stated staff is recommending a 3% cost of living adjustment and a 3% increase in automobile allowances, where applicable. ADOPTED RESOLUTION NO. 2006-83. 4. Resolution Extending the Term of the Southern Anoka County Community Consortium Joint Power Agreement. William Burns, City Manager, stated that this extension of a current agreement covers Values First and the work of our multi-jurisdictional consortium of southern Anoka cities and school districts. The resolution establishes Fridley's share of costs for this organization at $5.782. The amount would be payable in each of the two years of the contract e�tension. The contract expires on December 31, 2008. Staff recommends Council's approval. ADOPTED RESOLUTION NO. 2006-84. 5. Approve Change Order No. 1 for the 2006 Miscellaneous Concrete Repair Project No. 365. William Burns, City Manager, stated that the change order is for additional concrete panels that were replaced on Matterhorn Drive and the University Avenue Service Drive West. The cost for this work is $3,880 and brings the total contract amount to $79,880. Staff recommends Council's approval. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 20, 2006 PAGE 4 6. Claims. APPROVED CLAIM NOS. 129249 THROUGH 129398. 7. Licenses THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 8. Estimates. Approved the following estimates: Midwest Asphalt 5929 Baker Road, Suite 420 Minnetonka, MN 55345 Mill and Overlay 2006 — 2 Estimate No. 2 ... ... ... ... ... ... ... ... ... ... ... ... ...... ... .... $14,056.21 Midwest Asphalt 5929 Baker Road, Suite 420 Minnetonka, MN 55345 3rd Street Project 2006 — 3 Estimate No. 4 ... ... ... ... ... ... ... ... ... ... ... ... ... ........ ... $20,689.50 Councilmember Bolkcom asked for removal of Item No. 5. Councilmember Barnette asked for removal of Item Nos. 2 and 7. APPROVAL OF CONSENT AGENDA: MOTION by Councilmember Bolkcom to move into record the claims from Dr. Burns. Seconded by Councilmember Billings. MOTION by Councilmember Barnette to approve the consent agenda with the removal of Item Nos. 2, 5 and 7 and the addition of the claims. 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 Bolkcom to adopt the agenda as presented with the addition of Items 2, 5 and 7. Seconded by Councilmember Wolfe. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 20, 2006 PAGE 5 UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. OPEN FORUM (VISITORS): Councilmember Bolkcom stated that she had asked Mr. Haukaas to research the street reconstruction project bids as there was some conversation at the last meeting during open forum regarding concerns that the project is not always awarded to the lowest bidder. Jon Haukaas, Public Works Director, answered that the question raised at the last meeting was regarding the award of the street reconstruction project to Park Construction and the implication that they were not the lowest bidder. Mr. Haukaas shared bids from the May 8, 2006, agenda showing the actual bid for the street reconstruction project. It reflected that Park Construction was the lowest bidder by about $440,000. Mr. Haukaas also researched other awards from previous years and in no case was someone that was not the lowest bidder awarded. Some bids are disallowed if the bids are not filled out complete with all items requested. The City is required by law to award to the lowest responsible bidder. In this instance, Park Construction was in fact the lowest bidder for this year's project. 9. Consider Revocation of a Special Use Permit, SP #06-08, for Sinclair Fridley, Generally Located at 6071 University Avenue N.E. (Ward 1) 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 MOTION CARRIED AND THE PUBLIC HEARING OPENED AT 7:45 P.M. Rachel Harris, Environmental Planner, reviewed the actions that lead up to the revisit of the Special Use Permit (SUP). Staff has done site visits, sent letters, follow up visits and follow up letters. This item was brought before Council on July 10, 2006. At that time the Special Use Permit, SP #73-OS and was renumbered to Special Use Permit, SP #06-08 and more modern stipulations were attached. Following the July 10 meeting, there were a few stipulations that were not met in relation to parking. A re-inspection was done and a revocation was scheduled for the September Council Meeting. This was because the stipulations had not been completed after the e�tension of the July 10 meeting. The City had a meeting with the business owner on September 6, 2006, and made some agreements and the stipulations were clarified. At that time, staff found that this item would not need to be brought to Council. Staff continued to monitor and noticed there were still parking problems and did re-inspections throughout October. Ms. Harris stated that C-2 zoning allows an automobile service station and motor vehicle fuel and oil dispensing with a special use permit as well as repair garage. A special use permit does allow for caveat on land parcels and is granted by the City. It is reviewed annually by the City and can be revoked if necessary. At this site, the previous business was a gas station with light auto repair and was sold in July of 2005. The current business is similar, it does have light auto repair but no gasoline sales. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 20, 2006 PAGE 6 Ms. Harris stated that previous Council action includes a public hearing on June, 2006, and the business owner was present and commented. On July 10, 2006, the special use permit was reviewed and stipulations added. At the time of the public hearing, the business had not met all the stipulations. As of today, staff has been monitoring the following for compliance: vehicles parking in stalls, all the stalls shall be painted with stripes, vehicles shall be parked in stalls that are striped and designated for parking, the vehicles shall not be stored for more than 48 hours on site, the drive by shall be clear and unlicensed vehicles parked on site on a recurring basis. Ms. Harris stated that Staff has received some new information and the recommendation is different than what was sent to Council last week Staff has learned that the current business owner is expected to leave as of December 1 and a new tenant may be coming in as soon as December 1. For this reason, staff is recommending that Council continue the public hearing until December 11 or later. Additionally, this would allow the new business to get established and reconsideration of the revocation of the special use permit based on the new business owner's performance. Councilmember Billings asked if there was any kind of publication regarding the hearing tonight. Julie Jones, Planning Coordinator, answered that there was a public notice in the paper about this public hearing. Councilmember Billings questioned if the fee owner has been informed. Ms. Jones replied this is a unique situation. The business owner is the brother of the property owner. Staff has been working with the business owner and was told that the land owner was terminally ill and unable to work with staff. Today staff was able to get in contact with the son of the land owner. The son is helping his father and taking over his business affairs. The son informed staff of the different lease arrangement that will be happening very soon and asked staff to give them time to get this new business operating. The son wants to improve the site himself. Because the property owner has been ill, it has been hard to communicate. Councilmember Billings asked if the letter titled "City Council Action Taken" dated July 14 was sent to the fee owner, as it is not noted on the letter. Was the letter sent to the property owner or just to the leasee. Ms. Jones answered that staff did not have the name of the fee owner. Now, through research, staff has found the fee owner and has given the fee owner the information. Mayor Lund questioned what the problem would be to revoke the special use permit and the new business owner reapply for a special use permit. Ms. Jones answered that there is no reason staff could not revoke and reissue a special use permit. Typically the special use permit does go with the land and what staff is hearing from the son of the land owner is that there is not going to be a significant change in the type of business. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 20, 2006 PAGE 7 The new business plans to sell gasoline and perform car repair. The stipulations on the current special use permit would cover the new business coming in. Mayor Lund asked for clarification that Mr. Ahmad is the business owner but not the property owner. Ms. Jones replied that is correct. Councilmember Bolkcom stated that the last meeting of the year would be December 11 and she asked if there would be enough new information available by that time. Ms. Jones answered that the special use permit would continue with the land and does not expire on December 31, 2006. The business owner's lease expires on December 31. The business license expires in March or April of 2007. Councilmember Bolkcom questioned what promises Council has that the actual letter was sent to the property owner and the property owners are aware of what is currently going on. Council has no written documentation besides verbal communication to let the land owner know about these issues. Ms. Jones answered that the property owners appear to be aware of what is happening. It is correct that staff has no written documentation to the property owner of the problems with the current business. Councilmember Bolkcom questioned if the property owners were aware that the special use permit may be revoked. Ms. Jones answered that today the information was faxed to the property owner. Councilmember Billings questioned if it was staff s belief, after talking to the currently leasee and son of the fee owner of the property, that it is highly likely that on December 31 the current leasee will not be leasing the property. He asked if it will take some time to find a new leasee or if there is a new leasee ready to open a business right away. Ms. Jones answered that staff understands that a new lease arrangement is ready to go. The property owner was asking how quickly a new business license can be obtained for the new leasee. Mr. Ahmad stated that he is going to leave the business on November 30. The new leasee will take over the business December 1. Mr. Ahmad has a medical condition that leaves him unable to perform his job. Councilmember Billings asked for clarification that Mr. Ahmad plans to leave the business on November 30 and a new business owner will take over on December 1. He stated that the new owner will work with the new licensing procedures. He regretted to hear about Mr. Ahmad's medical condition and when he was last before Council he seemed sincere to try to do what he FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 20, 2006 PAGE 8 could to deal with the issues. Mr. Ahmad has been unable to do the work, which would explain a lot of the problems that have been happening. Mr. Ahmad apologized for the problems that have been going on with the business and wished good luck to the ne�t owner. Councilmember Billings thanked Mr. Ahmad for his time. He recommended continuing the public hearing until February to give the new business owner some time to get the business going. Due to the illness and staff testimony, no staff contact until recently, some time may be needed so the fee owner can address issues. MOTION by Councilmember Billings to continue this public hearing until the second meeting in February 2007. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 2. Resolution Abating a Portion of the Assessment for Certain Properties within the 2006 — 1 Street Improvement Project. Councilmember Barnette questioned why one of the properties on the abatement, 981 Overton Drive, was $5,222 and all other properties were between $100 and $1,000. Jon Haukaas, Public Works Director, answered that the particular property mentioned had originally requested a driveway reconstruction but later decided not to have the driveway done. This was added to the assessments and it was caught too late so now are asking to have that fee removed. MOTION by Councilmember Barnette to adopt Resolution No. 2006-82. Seconded by Councilmember Billings. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 5. Approve Change Order No. 1 for the 2006 Miscellaneous Concrete Repair Project No. 365. Councilmember Bolkcom questioned the increase from $76,000 to $79,000 and if that figure was still within the budget. Jon Haukaas, Public Works Director, answered the concrete repair contract is an open-ended project. The actual amounts are not known until after the work is completed. This amount is within the City's budget. MOTION by Councilmember Bolkcom approve Change Order No. 1 for the 2006 Miscellaneous Concrete Repair Project No. 365. Seconded by Councilmember Wolfe. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 20, 2006 PAGE 9 UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 7. Licenses. Councilmember Barnette asked about the gambling permit and if the owner had a previous permit. Richard Pribyl, Finance Director/Treasurer, answered that there was actually 8 previous temporary gambling permits, 4 temporary permits for bingo games and 1 raffle. This is similar to what was done in the past. MOTION by Councilmember Barnette to approve the licenses as submitted. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 10. INFORMAL REPORTS Councilmember Bolkcom stated that she would like to discuss after the meeting a letter received from Commissioner Berg relating to appointing someone to the Economic Development Exploratory Committee. Mayor Lund congratulated the High School on their success on the play. Dr. Burns said the City newsletter should be out to residents shortly after December 1. ADJOURN: MOTION by Councilmember Barnette to adjourn. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MEETING ADJOURNED AT 8:20 P.M. Respectfully Submitted by, Krista J. Monsrud Scott Lund Recording Secretary Mayor