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05/05/2008 - 29252CITY OF COUNCIL MEETING CITY OF FRIDLEY MAY 5, 2008 The City Council meeting for the City of Fridley was called to order by Mayor Lund at 7:30 p.m. ROLL CALL: MEMBERS PRESENT: Mayor Lund Councilmember-at-Large Barnette Councilmember Saefke Councilmember Varichak Councilmember Bolkcom OTHERS PRESENT: William Burns, City Manager Fritz Knaak, City Attorney Scott Hickok, Community Development Director James Kosluchar, Public Works Director Captain Brian Weierke, Fridley Police Department PROCLAMATIONS: National Police Week May 12-18, 2008 Peace Officers Memorial Day. May 15, 2008 Public Works Week May 19-25, 2008 PRESENTATION: New City Auction Procedure. Brian Weierke, Captain, Fridley Police Department, stated historically our auctions have always been held annually. Back in the 1970's, our Police Department held auctions behind the Police Department. In the 1980's, it grew and with other departments joining, it was moved up to the City garage on 71st Avenue. In 2003, the auction was moved off-site to a larger venue in order to attract large crowds and maximize sales. They hired a private auctioneer to conduct the auctions, and over the last three years, the City's average profit has been $4,365. The profit amount does not include the time spent by staff organizing and preparing for the auction itself. Captain Weierke stated the problem with our system is that the planning, organizing, and follow-up consumes a lot of City staff time. They estimate that the revenue we get from the auction is not enough to offset the staff time invested. Also with the lack of storage space at City Hall, it is getting more and more difficult to store equipment for a full year. FRIDLEY CITY COUNCIL MEETING OF MAY 5, 2008 PAGE 2 Captain Weierke stated approximately 20 cities have started contracting with on-line property disposal services. The cities include Coon Rapids, Brooklyn Center, Brooklyn Park, Crystal, and Maple Grove. He has received positive feedback from the cities he has spoken to. All of the cities are using Propertyroom.com. From their research, they found that it was best suited for a city of our size. Captain Weierke stated he had attorney Knaak look at the service agreement. Electronic sale of property is allowed by Minn. Stat. §471.345. Propertyroom.com was founded in 1999 and launched in 2001. We have signed a service agreement which allows us to begin selling on-line electronically, and we can get out of the service agreement at any time. Captain Weierke stated our first pickup is scheduled for the third week in May. He wanted the public to understand that the Police Department will still do everything it can to return all lost or stolen items that they find back to the rightful owner whenever possible. The biggest benefit to this on-line service is less staff time preparing items for the auction. They will pick up once a month. It lessens staff time by just putting barcodes on our equipment instead of listing each individual item. It will drastically reduce storage and handling throughout city hall. It will increase public exposure to all city equipment we are getting rid o£ He said he thought that overall, our City auction proceeds should increase. His goal is to be within $8,000 a year in the next few years. Captain Weierke said Propertyroom.com will describe items online, sort and group merchandise, and clean our items. The auctions are open all year around, and the City will receive a check for everything we sell every 30 days. Captain Weierke said he plans to report back at the end of 2008 and each year after on its success to the Council. The new auction website is www.propertyroom.com. There will be a legal publication on the City's website permanently year around for our citizens' information. Captain Weierke stated the seized vehicles will still be sold in-house at the city garage through the Public Works Department. We do advertise these sales on the City's website and in the newspaper. Councilmember Varichak asked when you go to the website and purchase, is it just a straight bid, or is it like eBay? Captain Weierke replied it is an auction-type of bid. They open it up for 10 days, and the highest bidder gets that property after 10 days. They feel we will get more financial benefit. from that. Councilmember Varichak asked how long does it take to deliver it to the person? Captain Weierke replied it depends on the shipping package you choose. Nothing on the website will indicate whether it is City of Fridley property. The City will always know whose property it is on the website through the bar-coding system. FRIDLEY CITY COUNCIL MEETING OF MAY 5, 2008 PAGE 3 Councilmember Varichak asked if someone recognizes some property on the website, what is the next thing that happens? Captain Weierke replied if they contact the Police Department, we would contact propertyroom.com and ask them to take it off the website. The Police Department would follow up from there. That is why they really encourage people to write down their serial numbers, model numbers because it is really the best way to trace something. Councilmember Bolkcom asked about the length of time a piece of property is held. Captain Weierke replied they hold it for 60 days. If they have any information on whose property it is, they will do everything in their power to try and contact the owner. After 60 days if no one has come forward or made a report, they can dispose of it per our City ordinance. APPROVAL OF PROPOSED CONSENT AGENDA: NEW BUSINESS: 1. Receive the Minutes of the Planning Commission Meeting of April 16, 2008. RECEIVED. 2. Resolution Approving Special Legislation (2008 Fridley Northstar Transit TIF Bill). William Burns, City Manager, stated through the help of our state legislators, we have succeeded in gaining approval of special legislation that allows us to create a transit-oriented TIF district in an area encompassing 158 acres. This area is in the vicinity of the proposed rail station site. Dr. Burns stated the same legislation allows us to use funds from three post-1990 TIF districts for Northstar station expenses. He thought we have something like $900,000 there now, and we expect to generate another $1.8 million in future years. In order for this legislation to become effective, Council must adopt a resolution approving the special legislation. Staff recommends Council's approval. ADOPTED RESOLUTION NO. 2008-19. 3. Claims (136540-136644) APPROVED. 4. Licenses APPROVED THE LICENSES AS SUBMITTED AND AS ON FILE. FRIDLEY CITY COUNCIL MEETING OF MAY 5, 2008 PAGE 4 APPROVAL OF PROPOSED CONSENT AGENDA: MOTION by Councilmember Barnette to approve the consent agenda as presented. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. ADOPTION OF THE AGENDA: MOTION by Councilmember Bolkcom to approve the agenda. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. OPEN FORUM: Councilmember Bolkcom asked if someone would briefly go over what is going to happen with the Northstar Rail station site. Scott Hickok, Community Development Director, stated residents who are in the 61st area or who will be traveling through that area will probably see that staging has begun on the site. There is roughly 11 acres at the intersection on the west side of Main Street, at 61st Avenue. That staging has to do with a tunnel installation that will be happening on May 27. The tunnel is a box culvert. It is not the full tunnel that will be necessary for the train station, but it is the first of the infrastructure to be installed. This box culvert will allow the contractor later to work without disrupting the traffic along the Burlington Northern rail line. They will be working 30 hours straight. Because this will interrupt the use of the rail lines for a period of time, Burlington Northern has asked to work 30 hours straight through. They cannot disrupt the rail any longer than that. So they are going to be actually taking up the rail, putting in the box culvert, putting the rail back down, and they need that time to do it. Anyone living nearby will probably see lights and hear construction activities. Hopefully, it will not be too disruptive to their lives. Residents in the immediate area have been sent a letter with contact information for any questions they might have. If they want to contact someone on staff, they can contact Paul Bolin at 763-572-3591. His e-mail address is bolin�(a�,ci.fridle .v mn.us. William Burns, City Manager, said that while we are not involved in the construction or the funding of the construction of the tunnel, we have some other involvement in the land that is being used for the staging area. He asked if he would elaborate on that also. Mr. Hickok replied the 11 acres of property at 61st and Main Street where they are doing the staging has recently been purchased thanks to our HRA at a price of $3,165,000. That is the HRA's contribution to this effort to have the station in Fridley. This is something that is not only important to the City of Fridley and its HRA, but to the State with its transportation program. FRIDLEY CITY COUNCIL MEETING OF MAY 5, 2008 PAGE 5 Councilmember Saefke asked what time the construction would start. Mr. Hickok replied early morning on May 27. The 30 hours will run from that point forward. Councilmember Saefke asked how early. Mr. Hickok replied around 6 a.m. Councilmember Bolkcom stated in the letter it states as early as 3 a.m. Dr. Burns stated they will be tunneling on the east side. His understanding from the HRA meeting last Thursday night was that on the west side they will actually be removing some rail and trenching and putting in the box culvert through a trenching method as opposed to a tunneling method. Mayor Lund asked regarding the continuous hours of operation, does the City need to take some kind of formal action to allow that exception. Mr. Hickok replied, Burlington Northern has historically had basically its own governance. They do construction around the clock at their yards south of I-694. It is not unusual for them. It is a courtesy to the neighborhood though to let them know what was going on. For that reason letters have been sent out to residents to let them know. Mayor Lund asked should there be any noise complaints, would police officers be able to enter the property and talk with them about the noise. Fritz Knaak, City Attorney, said they cannot. There are some areas where what happens on a railroad right-of-way and what railroads do in the conduct of their business is federally preempted, and the City is precluded, as a local unit of government, from interfering in those areas. One of those areas happens to be in the construction in and around rail facilities. In an area where they are actually working on the right-of-way, on the rail bed, there is frankly nothing the City can do to enforce its noise ordinance. Councilmember Barnette asked once the tunnel is in, the ends of the tunnel would be sealed, correct? Mr. Hickok replied, correct. Councilmember Barnette asked if it would only be unsealed when they continue the operation of building the station. Mr. Hickok replied, yes. For all practical purposes, you will not know the box culvert is under there. Once the 30 hours is done, they will continue their operation of the rail. The box culvert will be tapped into at such time as the shafts, stairways, etc., are constructed. FRIDLEY CITY COUNCIL MEETING OF MAY 5, 2008 PAGE 6 PUBLIC HEARINGS: 5. Consider an Ordinance under Section 12.06 of the City Charter Declaring Certain Real Estate to be Surplus and Authorizing the Sale Thereof, Generally Located on Springbrook Creek near the Intersection of Broad Avenue and 79t'' Way (Continued April 28, 2008). MOTION by Councilmember Bolkcom to remove the item from the table. Seconded by Councilmember Barnette. UPON A VOICE VOTE, COUNCILMEMBERS BARNETTE, VARICHAK, BOLKCOM, AND MAYOR LUND VOTING AYE, COUNCILMEMBER SAEFKE ABSENT, MAYOR LUND DECLARED THE PUBLIC HEARING REMOVED FROM THE TABLE ON A 4 TO 0 VOTE AT 8:08 P.M. Mr. Hickok stated they have been asked by an adjacent property owner if they would continue the public hearing until the next meeting in May. The property owner who is interested in buying the property and his neighbor who may be interested in buying a piece of it as well have both agreed the next meeting would work fine for them. They have asked that this and the legislative piece that is under "New Business" be carried forward to the next meeting. Staff does not object to this request. Mayor Lund asked if the interested parties are both available to attend the next public hearing if they continue it. Mr. Hickok replied, yes. Mayor Lund asked one of the interested parties present in the audience if he wanted to give testimony tonight. Mayor Lund stated the interested party has agreed to wait until the next meeting. MOTION by Councilmember Bolkcom to continue the public hearing until May 19, 2008. Seconded by Councilmember Saefke UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 6. Consider Revocation of Special Use Permit SP #06-08, for Fridley Shop and Stop, to Operate a Service Station with Fuel Sales in a C-2, General Business Zoning District, Generally Located at 6071 University Avenue NE (Ward 1) (Continued February 25, 2008). MOTION by Councilmember Bolkcom to remove the item from the table. Seconded by Councilmember Saefke. FRIDLEY CITY COUNCIL MEETING OF MAY 5, 2008 PAGE 7 UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE PUBLIC HEARING REMOVED FROM THE TABLE AT 8:10 P.M. Mr. Hickok, Community Development Director, stated staff recommends Council continue the public hearing. The Fridley HRA has negotiated a purchase of the property. The terms of the purchase agreement have been worked out, and they believe that by June 23 the purchase will be complete and this issue will be null and void. MOTION by Councilmember Saefke to continue the public hearing until June 23, 2008. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. OLD BUSINESS: 7. Resolution Revoking Special Use Permit, SP #06-08, for Fridley Shop and Stop, to Operate a Service Station with Fuel Sales in a C-2, General Business Zoning District, Generally Located at 6071 University Avenue NE (Ward 1) (Tabled February 25, 2008). MOTION by Councilmember Saefke to table this item until June 23, 2008. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. NEW BUSINESS: 8. Resolution Receiving the Feasibility Report, Ordering Preparation of Plans and Calling for a Public Hearing on the Matter of Construction of Certain Improvements: Gardena Avenue Rehabilitation Project No. ST 2008-2. James Kosluchar, Public Works Director, stated this is a mill and overlay project in concert with a utility project for a portion of its length. The project begins at Old Central Avenue and continues to Stinson Boulevard.. There are several factors that made this a good selection. One, it is a state aid route and due to our accelerated street construction program, our local MSA funds are virtually used up annually and they have been for the past few years. State aid routes enable us to leverage that state aid funding. It does have a low condition rating. There are streets with lower condition rating; however, most of those streets come with other ancillary costs. Some of them are located near construction pending within the next few years so they would like to wait until that construction is complete. Also, our Street Department agreed this was at the top of that list. Mr. Kosluchar pointed out two items on the feasibility report. With respect to the Mill and Overlay Cost, the number should be $210,000 rather than $120,000. He also wanted Council to FRIDLEY CITY COUNCIL MEETING OF MAY 5, 2008 PAGE 8 recognize that the assessment numbers that are put in this report are estimated and based on the engineer's projection of costs. So they do not establish what assessments will be, they establish what assessments might be if these were the bid items and the budget was constructed for this cost. He wanted Council to understand there is some leeway in the numbers and they may change. Councilmember Saefke stated he knows that we are planning on replacing 1,100 feet of water main, and because he had worked in that division for a good number of years, perhaps he knows why that is. It is an 8-inch water main, cast iron, and it is buried quite deep in clay. When that one breaks, which it has quite frequently, it floods not only Gardena but it also Central Avenue which is a main thoroughfare through Fridley. It creates quite a problem. There have been quite a number of breaks up around Tennison and Gardena Avenue. He thought it was a good idea to replace it. Mr. Kosluchar said he thought Councilmember Saefke summarized it very well. They will be looking at the location of the water main during the design phase. Councilmember Bolkcom said Mr. Kosluchar mentioned some assessments. Again, those are estimate assessments. There will be a public hearing on May 19. At that time she suggests that he clearly explain to everyone what the assessment will be and how he arrived at that cost. There is commercial property in the project. That could be part of his presentation. Tonight they are basically approving the study and on May 19 there will be the public hearing. Mr. Kosluchar replied, that is correct. William Burns, City Manager, stated we are fulfilling a statutory obligation. Mr. Kosluchar replied, that is correct. Councilmember Bolkcom said and at the public hearing the costs and how they arrived at them will be presented. Mr. Kosluchar replied, that is correct. Councilmember Bolkcom asked once the public hearing happens, when does Mr. Kosluchar see the project happening? Mr. Kosluchar replied, he anticipates about four weeks before they have the design complete and then they will advertise for bids. He said that puts them at maybe July. MOTION by Councilmember Varichak to adopt Resolution No. 2008-21. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF MAY 5, 2008 PAGE 9 9. Informal Status Reports. Councilmember Bolkcom said the Police Department recently held a block captains meeting and there was a very nice turnout. They discussed withdrawing from National Night Out program. They will still hold the neighborhood block parties on that night, but not use their logos this year. The Director of Public Safety was going to look at putting the information he presented at that meeting on the City's website. Mayor Lund stated he would ask citizens of Fridley to entertain being a block captain. If you have an interest, please contact Myra Harris at 572-3638 or e-mail or call City Hall. Councilmember Saefke stated usually the block captains are responsible for the block parties on National Night Out. They are also the contact people with our Police Department if there is any crime in the neighborhood. Typically the police will contact the block captain who then can distribute either by brochures or word of mouth amongst the neighborhood what is going on which is a definite benefit. As the Police and even Public Works employees say, the citizens are the eyes and ears of our community. Mayor Lund stated the police are hosting their Second Annual Open House on May 17, from 10 a.m. to 2 p.m. in the lower level of the Municipal Center. They will be grilling hamburgers, hot dogs, and brats, and there will be other donated items. Mayor Lund stated at a previous Council meeting one of our citizens, A1 Stahlberg asked about boarding up houses. Mr. Stahlberg was pretty adamant about having homes boarded up, although he would like to see those boards painted to make them more aesthetically appealing. They had said it was the owner's responsibility, whoever owns that property at any given time, to maintain the windows, doors, etc. under our Code. However, in foreclosure proceedings during the redemption period which is currently six months, the City may be required to board up homes. In those cases, we do have some responsibility by State Statute to at least minimally maintain that property or secure it until the redemption period is over with. Councilmember Bolkcom stated but that is only if the windows or something were broken. It is not like we are going to go and start boarding up windows on foreclosed homes. Mayor Lund replied, that is right. It is only in those cases where it is apparent there has been vandalism. We would need to secure the property as best we can. The costs the City incurred would be taxed onto the property and the City would be reimbursed at some future date once that property has been resold. Councilmember Barnette mentioned he thinks it would be helpful if the citizens in Fridley would help by letting our Community Development staff and the Police Department know if any homes in their neighborhood appear to be vacant. FRIDLEY CITY COUNCIL MEETING OF MAY 5, 2008 PAGE 10 ADJOURN. MOTION by Councilmember Barnette to adjourn. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MEETING ADJOURNED AT 8:37 P.M. Respectfully submitted by, Denise M. Johnson Scott J. Lund Recording Secretary Mayor