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05/19/2008 - 29253CITY COUNCIL MEETING CITY OF FRIDLEY MAY 19, 2008 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 Saefke Councilmember Varichak Councilmember Bolkcom OTHERS PRESENT: William Burns, City Manager Scott Hickok, Community Development Director James Kosluchar, Public Works Director Fritz Knaak, City Attorney ADOPTION OF AGENDA: MOTION by Councilmember Bolkcom to the consent agenda. Seconded by Councilmember Saefke. UPON VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. OPEN FORUM: Ken Hughes, 6424 Ashton Avenue, had questions regarding his assessment. He attended the November 19, 2007, assessment hearing. He received a letter after the hearing, and the details were different than what Council had said. He has spoken to Councilmember Bolkcom, Mr. Kosluchar, Mayor Lund and Councilmember Barnette about this issue. He asked where to go from here because he is not getting a response. Mayor Lund advised Mr. Hughes to give Council his concern and the Council would discuss this matter and respond at the next meeting. Mr. Hughes asked if Mayor Lund would bring the viewing audience up to date on what was discussed in a meeting regarding this issue this afternoon. FRIDLEY CITY COUNCIL MEETING OF MAY 19, 2008 PAGE 2 Mayor Lund said that he misspoke at the assessment hearing. He thought that Mr. Hughes would only be assessed on the front curb and not on the side street. This was not correct. He said he made a mistake and apologized. Everyone is assessed in the same way if they have this type of lot and this is consistent with how things have been assessed for years. Mr. Kosluchar said that the assessment is correct and it states in detail what is included in the assessment. Mr. Hughes asked if Council would be fair and give him the same rate as last year. Mayor Lund said he would take it under advisement. Mr. Hughes asked Councilmember Bolkcom if she could comment on the sod issue. Councilmember Bolkcom said that she remembers the conversation and that Mr. Kosluchar was new to the City and was pretty clear what was included. To reduce the assessment cost at this time would cause her concerns. She asked they legally needed to have another public hearing. Fritz Knaak, City Attorney, said they just need to be sure to ask the questions now. Councilmember Bolkcom said that another hearing would not clear up things but they could send out another letter to residents to clarify things. Mr. Hughes said that he did not think he would be assessed for the sod and topsoil. A two foot strip of sod was installed behind the curb and he was assessed for '/z of the sod and topsoil. He stated that his street was "all the leftovers" and thinks that the assessment should be reduced to make it fair. Mayor Lund replied that in all fairness, Council will get back to him on these issues. Mr. Hughes said he would appreciate a response and asked if he should be talking to someone else on this issue. Councilmember Saefke said that the comment that his streets were "all the leftovers" was just a phrase, the leftovers included all the remaining streets that needed curb and gutter. The City starts at one spot and works until all the streets was finished. The ones that were completed first, will be first on the list when it comes time to redo the streets again. William Burns, City Manager, said that typically an assessment is not finalized until the project is completed. The figures Mr. Hughes currently has may change to a lower (or higher) number so it would not be fair to cut a deal at this time. It would also be unfair to the others. Mr. Kosluchar agreed that it would be improper to set the final assessment numbers tonight. Mayor Lund said regardless, the project will move forward and right now the estimate is $21.00 per linear foot. The final assessment could come in at $17.00 but $21.00 is more realistic. He FRIDLEY CITY COUNCIL MEETING OF MAY 19, 2008 PAGE 3 said that the City is not trying to be unfair to Mr. Hughes. He can bring these issues to the assessment hearing when the final assessment is received. Tom Myhra, 6360 Able Street, said he had some information on the Comprehensive Plan he wanted to discuss but would come back in August. He distributed some information for Council to review. Patricia Shade, 7866 Alden Way, said she received a letter Saturday saying the tennis courts were being removed in her neighborhood because they are not being used. She came to state that the courts are used quite a bit. The current condition is playable and a lot of young families are using the tennis courts. She has a petition that was signed by several neighbors that use the courts. She asked if they would reconsider removing the courts until they are not useful anymore. The nearest tennis courts that are available for use require people to cross a busy road and the next one is over a mile away. Councilmember Bolkcom asked who signed the letter. Ms. Shade answered Jack Kirk. Councilmember Barnette said this was brought up at the Park and Recreation meeting. They are looking at closing nine tennis courts. After the meeting tonight Council will look into this issue and get back to Ms. Shade. Councilmember Bolkcom said that this is not a decision made by the City Council. She asked Dr. Burns what it would cost to resurface the courts. William Burns, City Manager, said $18,000 to $20,000. Councilmember Bolkcom said that Mr. Kirk will have to see if the courts are safe and if it would be possible to keep the courts open. Mayor Lund said he agreed the surface is playable and not in A+ condition. The green seal court is peeling and it is not pretty. Mr. Kirk and the Commission will have to revisit this issue. Councilmember Bolkcom said the Park and Recreation Commission meet the first week in June. Mayor Lund said there are 19 courts in the middle school and high school area. He realizes it is a safety issue crossing the busy highway or driving nearly a mile to the next tennis court. He agreed this is a valid argument and would ask Mr. Kirk to revisit removing the tennis court. A1 Stahlberg, 8099 Riverview Trail, brought up a Star & Tribune article dated May 16, 2008, regarding a rental license moratorium in Columbia Heights. Councilmember Bolkcom said she saw the article and agreed it would be a good idea to look at it. FRIDLEY CITY COUNCIL MEETING OF MAY 19, 2008 PAGE 4 APPROVAL OF MINUTES: Board of Appeal and Equalization Meeting of April 28, 2008. APPROVED. City Council Meeting of April 28, 2008 APPROVED. City Council Meeting of May 5, 2008 APPROVED. PUBLIC HEARING: 1. Consideration of 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 May 5, 2008). MOTION by Councilmember Bolkcom to remove the item from the table. Seconded by Councilmember Barnette. UPON VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Scott Hickok, Community Development Director, said there are five 25' wide lots owned by the City likely for drainage purposes. The location is near pover and Broad in the Riverview Heights area. Springbrook Creek weaves through the five lots. The terrain is wooded on Springbrook Creek with steep grades. These are land-locked parcels. One PIN number would be used. The lots are in the shoreland overlay district and entirely in the flood fringe. Mr. Hickok said there are two people interested in purchasing this property. Justin Chapweske, 530 Dover, asked to purchase property from the City about a year ago. Staff discussed a purchase agreement with tentative terms of the buyer incurring all costs of land sale. A public hearing noticed was published. A second interested buyer came forward when notices were mailed to surrounding property owners. Garland Lagesse, 7951 Broad, has expressed interest in purchasing part of the five lots. Staff has been unable to coordinate a meeting with both parties interested. Mr. Hickok said the City Council must declare the property excess by ordinance and authorize a sale. There is an ongoing debate on who the City should sell the property to. Staff is working on a proposed sale transaction which is agreeable to both interested parties. FRIDLEY CITY COUNCIL MEETING OF MAY 19, 2008 PAGE 5 Mr. Hickok said the City could sell the property for $1 per square foot (each lot is approximately 2,750 square feet). The buyer would have to pay the $1,500 fee for the public hearing process and all closing costs related to the sale. Mr. Hickok said the vacant lots are not needed by City, and the City only has access. There are downed trees on these lots and adding lots to adjacent properties will increase private land values and therefore generate tax revenues. The owner of 530 Dover may need this property to stabilize a slope. Mr. Hickok said that the complication of a sale to two parties would include five lots that would fall under one PIN number. The lots can be sold separately, but only after a lot split process. Staff recommends that the public hearing be kept open because both interested buyers could not be present tonight. Staff will work towards agreeable terms of sale for the next Council meeting on June 9. Councilmember Bolkcom asked how long this item can go on as it has been going on for over a year. Mr. Hickok said that land negotiations can go on for a long time. Councilmember Bolkcom asked if this is part of the Six Cities Watershed District. Mr. Hickok answered yes. Councilmember Bolkcom asked if the interested parties could take down the trees. Mr. Hickok said that they could just remove the trees that were already down. There has been no discussion about taking down additional trees. Councilmember Bolkcom asked about the stream bank and if the homeowners would need flood insurance. Mr. Hickok said that he hesitated to answer that question and the homeowner should check with their insurance agent. Councilmember Bolkcom asked about cost of the lot split and who would be responsible for the fees. Mr. Hickok said all costs are taken care of by those who would benefit from the sale. There would be no cost to the City. Councilmember Bolkcom asked how the price of the lot would be decided. Fritz Knaak, City Attorney, said that the price of the lot split would be whatever the City considers to be reasonable and fair priced. The City is not required to take the highest bid if the City decides to sell the land. The City would just have to take the price that is most reasonable. FRIDLEY CITY COUNCIL MEETING OF MAY 19, 2008 PAGE 6 Councilmember Bolkcom said that in the past the price was $1.00 per square foot but asked if the City would have to take that price. Attorney Knaak said that the City would not have to take that price. Garland Lagesse, 7951 Broadway, said he has lived on the property for 32 years. Mayor Lund asked if Mr. Lagesse has had a discussion with the other interested party. Mr. Lagesse said that they spoke briefly and the other party was interested in buying the land because he was concerned about erosion. Mr. Lagesse's main reason for wanting to buy the lots was to secure the privacy he currently has on his lot. He is looking forward to sitting down and talking with the other party. Mayor Lund asked if Mr. Lagesse preferred the City to retain ownership of the lots or make the split between the homeowners. Mr. Lagesse said that he would go for nothing to happen to his property but said he needs to discuss this issue with his neighbor in detail. Mayor Lund said if the two property owners cannot agree on the split, the City will continue to hold ownership. Councilmember Bolkcom suggested continuing this public hearing until the second meeting in June. Mr. Hickok said the other neighbor plans to make this issue a priority and work out the details and have decisions ready for the June 9 meeting. He said it would be okay to wait and the additional time may be good to work out the details. Mayor Lund asked if another 30 days would be sufficient time to work out the details. Mr. Lagesse said the extension would be a good idea. MOTION by Councilmember Bolkcom to continue the public hearing until June 23, 2008. Seconded by Councilmember Saefke. UPON VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY 2. Consideration of Gardena Avenue Rehabilitation Project No. ST. 2008-02. MOTION by Councilmember Barnette to waive the reading of the public hearing notice and open the public hearing. Seconded by Councilmember Varichak. FRIDLEY CITY COUNCIL MEETING OF MAY 19, 2008 PAGE 7 UPON VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING OPENED AT 8:35 P.M. James Kosluchar, Public Works Director stated that this is the third year under the City's assessment policy for major maintenance of streets that have concrete curb and gutter. This program will continue in future years to continue the necessary upkeep of our streets. This project has been initiated to rehabilitate the deteriorated asphalt surface and is an opportunity to replace the brittle water mains. Mr. Kosluchar said that a notice of this meeting was published in the last two editions of the Sun Focus and individual letters were mailed on May 9. It has been determined that simple pothole patching is no longer sufficient to maintain a safe travel surface in several areas of the City. The water main has broken several times between Central Avenue and Matterhorn Drive. The condition of the pipe is deteriorating due to the acid soils in this area. Mr. Kosluchar defined the project area as Gardena Avenue from Central Avenue to Stinson Boulevard. The project consists of removing the top 2" inches of the deteriorated asphalt, replacing 1,100' of water main, repaving 2" of asphalt, and repainting the pavement markings. The 1,100' of 8" water main from Central Avenue to 100' east of Matterhorn Drive will be replaced. The aggregate base and asphalt bituminous will be reconstructed and they will try to protect most of existing concrete curb. Please note that there is no assessment for water main related work. Mr. Kosluchar reviewed the project cost. The total cost is estimated at $351,000; with $145,000 for water main replacement and $206,000 for milling and overlay. The funding for the project will come from the following revenues: $ 88,000 from the State Aid account $118,000 assessed to adjacent properties $145,000 from the water fund Mr. Kosluchar stated that the non Rl/R2 property assessment is measured on the assessable frontage which is measured adjacent to Gardena Avenue and set back 35' from the property line. The assessment is calculated by dividing total cost by length of roadway to determine the cost per foot. Then, each side of the street pays 50% of the cost per foot to resurface the street. The estimated cost per centerline foot is $54.20. Non Rl/R2 properties adjacent to Gardena Avenue are assessed $27.10 per foot of frontage (50% of total per-foot construction cost). Mr. Kosluchar stated that the Rl/R2 properties' assessable frontage is measured adjacent to Gardena Avenue and set back 35' from the property line. The Rl/R2 cost is the remaining balance of the mill and overlay cost less the non-Rl/R2 cost. The Rl/R2 cost is prorated for a 32' wide street rather than the existing 44' wide street (73%). The prorated Rl/R2 cost is spread among the 5,097.74' of assessable frontage. Sixty-four Rl/R2 properties will be assessed $9.85 per lineal foot. This is an amount based on the equivalent costs for a standard 32' wide residential street. FRIDLEY CITY COUNCIL MEETING OF MAY 19, 2008 PAGE 8 Mr. Kosluchar said that some of the properties will have unique property assessments. Al- Amal School is a"flag" lot which historically has been assessed the width of property, not the narrow portion at the curb. 5895 Central Avenue is a corner lot on a County road. The property has not paid a street rehabilitation assessment to the County or City, but receives benefit. This scenario has historically been assessed the lot width on the City street side. 1578 Gardena Avenue is a City Park City park frontage has historically been shared by the project participants. Mr. Kosluchar reviewed the assessment options. Option 1 is a lump sum paid within 30 days of the final assessment hearing (after construction). Option 2 would be to add the amount to property taxes that are paid over 10 years with an interest rate to be determined (typically 6.5 to 7.0%). Option 3 is for senior citizens meeting certain criteria. They may request to have the assessment deferred until the future sale of the property. Interest accrues until the sale, per City Resolution No. 14-1995. Councilmember Saefke asked if the 1,100 feet of water main would be accessed to the property owners. Mr. Kosluchar said that the homeowners would not be assessed for the water main. Councilmember Bolkcom asked if this is any different than policies in the past. Mr. Kosluchar said that this is the same method as used in the past. Council could access a flat rate to each property, but it is difficult to equalize the assessment. Councilmember Bolkcom asked if the cost included sod. We have not done a lot of rehab projects and the homeowners are not sure they understand the assessment. Councilmember Saefke said that the assessment is typical of a 32 foot width street. The residents are getting a deal because they are only being assessed for'/z of the street, and the width is 44' wide, a savings of 12'. Councilmember Varichak said that this is just an estimate and when the final project is done, a new assessment will be made. Mr. Kosluchar said that is correct. This is just to give the property owner an idea of what the cost might be. Councilmember Bolkcom said that the assessment could be more, this is just an estimate. Mr. Kosluchar said that this is based on the best information available. The estimate is a little conservative. If the actual cost comes out a lot higher than this estimate, it might be decided that the project is not feasible. Councilmember Bolkcom asked how a homeowner could find out what the cost may be. Usually the assessments would say it would not exceed a certain amount. FRIDLEY CITY COUNCIL MEETING OF MAY 19, 2008 PAGE 9 Mr. Kosluchar said he could not guarantee what the bids will come in at. Councilmember Bolkcom said the homeowners should be reassured that the assessment would not go much over the estimate. If the actual cost came in at twice the estimate, the project would probably be cancelled. Richard Pribyl, Finance Director, said that in the past he thought the assessment would say it would not exceed a certain amount. The assessment is usually estimated at the high end so the actual figures may come in lower. Mayor Lund suggested that residents stay tuned at the close of the bidding process. Councilmember Bolkcom asked that if the figures come in a lot higher than the assessment, a letter be sent to the homeowners saying that the project would be cancelled. Mayor Lund said that sometimes projects come in much lower than projected. Currently construction business is down so bids are lower because contractors are looking for work. Bill Simm, 1494 Gardena Avenue, asked if this was tax deductible. Mr. Pribyl answered that the homeowners are receiving goods and services so it would not be tax deductible. Mr. Simm said that he is a senior and was interested in option three. He asked if interest was built in that loan. Mayor Lund answered yes, interest accumulates for the length of the time and this option is truly for those not able to pay on normal terms. Mr. Simm said that he was assessed for $1,700 and others use the road as much as he does and asked why he had to pay more. Mayor Lund said that there is no perfect way to assess properties. He said that the lot is measured 35 feet from the curb line so the estimate is a little less. Councilmember Bolkcom asked Mr. Kosluchar to look at Mr. Simms property to address his concern. Mr. Simm said he is in favor of the project but the roads take a beating from the school buses and garbage trucks. Mayor Lund said that because Fridley does not have a common garbage hauler, we do have a problem with multiple garbage trucks on the roads during the week. FRIDLEY CITY COUNCIL MEETING OF MAY 19, 2008 PAGE 10 John Biner, 1499 Gardena, said he did not understand the process. He asked for clarification that this is just an estimate and what the next steps were with the project. Mr. Kosluchar said the complete design will be done in three to four weeks. Bids will come in from the end of July until the beginning of August. A contract will be awarded and the project will be completed by fall. A letter will be sent to homeowners in October for a final assessment. The final costs will be discussed and another public hearing will be held. Mr. Biner asked if the assessment would be due in 2008 or 2009. Mayor Lund said that when residents get the final assessment, they will have 30 days to pay the bill. If the bill is paid right away, the amount would be due November 30. If the homeowner chooses to put the assessment on their taxes, it would go on 2009 taxes. Councilmember Saefke said that after the project is finished, a public hearing will be held in October to set the final cost per property. Once the bill is received, the homeowner has 30 days to pay. Mayor Lund said that if bids are much higher than the estimate, the project may be cancelled. Currently the estimate is $9.85 and if the bid comes in too high, they will put it out for bid again or not do the project. Mr. Biner asked why just that section of the water main will be replaced. He said there are other areas that have had trouble with water main breaks. Mayor Lund said that they can do an inspection to make sure the City does not need to do more water main reconstruction. Charlie Coming, 1120 Gardena, said that water builds up at the intersection at Central and wanted the City to look at that intersection. Mr. Kosluchar said they could look at that corner. Councilmember Saefke asked if Central was a County road and if the County owns that storm water system. Mayor Lund said they can look at it and contact the County to make sure they are aware of the situation. Robert Burnham, 1100 Gardena, asked when they replace the water main, would the street be torn up or would they just install an in-line pipe. Mr. Kosluchar said they were still weighing out the options on that issue. Spencer Minear, 1291 Gardena, asked when the street was last done. FRIDLEY CITY COUNCIL MEETING OF MAY 19, 2008 PAGE 11 Mr. Kosluchar said that a seal coat was done in 1991. He wasn't sure if that amount was assessed to the homeowners. The base was installed in 1971. Mr. Minear asked about the water collection at the bottom of the hill. The last time there was a water main break, there was tension between where the County and City divide. The contractor did a bad job connecting Gardena to Highway 65. He asked if they could try to do a better job connecting the roads. MOTION by Councilmember Barnette to close the public hearing. Seconded by Councilmember Varichak. UPON VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING CLOSED AT 9:15 P.M. NEW BUSINESS: 3. Resolution Ordering Final Plans, Specifications and Calling for Bids: 2008 Gardena Avenue Rehabilitation Project No. ST. 2008-02. MOTION by Councilmember Varichak to adopt Resolution No. 2008-22. Seconded by Councilmember Barnette. UPON VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 4. Resolution Authorizing Final Changes in Appropriations for the General Fund, Special Revenue Funds, and the Capital Improvement Fund for the Year Ended 2007. Richard Pribyl, Finance Director, submitted the final changes in appropriations for the year ended December 31, 2007. These changes are the final budgetary adjustments similar to those of past years. The changes are in keeping with Chapter 7 of the City Code requiring total object categories to be within budget. The audit is coming to a close and these changes are also part of the requirements to submit the Comprehensive Annual Financial Report to the awards program of GFOA. Mr. Pribyl said that a few of the more significant adjustments to the General Fund were due to a special election that was not anticipated in the budget, various departments where employees ended the year with higher leave balances than they started with or sold annual leave. We are required to fund any additional balances. Also Special Revenue Fund Adjustments due to their nature are unknown at the time the budget is created. Capital Improvement Fund adjustments were made due to items budgeted that were actually coded to supplies and charges vs. capital outlay accounts. Staff recommends approval of the attached resolution. MOTION by Councilmember Saefke to adopt Resolution No. 2008-23. Seconded by Councilmember Bolkcom. FRIDLEY CITY COUNCIL MEETING OF MAY 19, 2008 PAGE 12 UPON VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 5. Claims (136647 — 136828). MOTION by Councilmember Bolkcom to approve the claims as submitted. Seconded by Councilmember Saefke. UPON VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY 6. Licenses. MOTION by Councilmember Bolkcom to approve the licenses as submitted and as on file. Seconded by Councilmember Varichak. UPON VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 7. Informal Status Reports. Councilmember Varichak said that she attended the Police Department open house and there were a lot of kids and people attending. It was a great day and very good. Mayor Lund wanted to thank the Lions Club for the grilling and groceries supplied by Wal*Mart, Sam's Club, Holiday, Super Target and McDonald's. Scott Hickok, Community Development Director, said that there will be a paper shredding event on Saturday, June 7. To date this event has shredded 10,700 pounds of paper. This is a great event and is free. He mentioned that there will be a drop-off recycling event on June 14. ADJOURN: MOTION by Councilmember Barnette to adjourn. Seconded by Councilmember Varichak. UPON VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 9:25 P.M. Respectfully Submitted, Krista Monsrud Scott J. Lund Recording Secretary Mayor