06/23/2008 - 29254CITY COUNCIL MEETING
CITY OF FRIDLEY
JUNE 23, 2008
The City Council meeting for the City of Fridley was called to order by Mayor Lund at 7:32 p.m.
ROLL CALL:
MEMBERS PRESENT: Mayor Lund
Councilmember-at-Large Barnette
Councilmember Saefke
Councilmember Varichak
Councilmember Bolkcom
OTHERS PRESENT: William Burns, City Manager
Richard Pribyl, Finance Director
James Kosluchar, Public Works Director
Scott Hickok, Community Development Director
Fritz Knaak, City Attorney
PRESENTATIONS:
A1 Swintek, CenterPoint Energy — Presentation to Fire Department
A1 Swintek, CenterPoint Energy presented a check to Fire Chief Berg in the amount of $2,500 to
help purchase protective clothing for the firefighters.
Mayor Lund thanked CenterPoint Energy for their generous gift.
STATE LEGISLATIVE UPDATE:
Senator pon Betzold said that this year's legislative session started on February 12 and ended
on May 18. This was not a budget year but the constitution requires the budget to balance. The
current budget had a$3.0 million deficit from one year ago. The spending funds were close to
accurate but the revenues came in lower than projected. The budget did balance, but they may
have the same problem next year.
Representative Carolyn Laine said she is very optimistic that the Fridley Northstar Station will
be built because of the sales tax increase. This extra sales tax expense must go to the County
fund but whatever money is left over may be applied towards the Fridley station. The Fridley
station is on the top of the wish list and grants will also be applied for to seek additional funding.
Representative Tom Tillberry said the best thing about this year's session was the
transportation bill that was passed. It will help fix bridges and roads so they are safe for
everyone.
FRIDLEY CITY COUNCIL MEETING OF JUNE 23, 2008 PAGE 2
Representative Kate Knuth said this year the focus was on a lot of basic items like the
transportation bill, education and health care. The bonding bill request was over $4.0 billion but
ended at $800.0 million, and the central corridor is a major piece of this bill.
Senator Betzold said that the tax bill was vetoed last year but passed this year. Local
government aid was sought and Fridley will benefit with an 84% increase. Legislative limits
came along with LGA increases.
Mayor Lund said that it does not matter about the levy limits for Fridley because of the Charter
restrictions. The validity of the LGA sounds good but is difficult to budget. Some communities
do not rely on LGA at all because it is not a guarantee.
Councilmember Barnette thanked Representative Laine for her enthusiasm for the Fridley
Northstar station.
Councilmember Bolkcom said she appreciated all the efforts on the TIF district, as this will
help develop the area and make Fridley a better community.
Mayor Lund asked if the revenues for next year would be better.
Senator Betzold said it appears that there will be at least a$1.0 billion deficit next year not
including inflation, so next year will most likely be a brutal session.
Giacomo Greco from Cagliari, Sardinia (Foreign Exchange Student)
Sue Davis introduced Giacomo Greco and said he has been a foreign exchange student at Totino
Grace and soon will be leaving to go back home. Giacomo presented a plaque from the City of
Cagliari to Mayor Lund and the Councilmembers.
APPROVAL OF PROPOSED CONSENT AGENDA:
APPROVAL OF MINUTES:
City Council Meeting of June 9, 2008.
APPROVED.
NEW BUSINESS:
1. Receive the Minutes from the Planning Commission Meeting of May 21, 2008.
RECEIVED.
FRIDLEY CITY COUNCIL MEETING OF JUNE 23, 2008 PAGE 3
2. Resolution Providing for the Sale of $1,915,000 General Obligation Improvement
Bonds, Series 2008A.
William Burns, City Manager, said the bond proceeds will be used to cover the City's portion of
the 2008 Neighborhood Street Improvement Project. Staff recommends Council's approval.
ADOPTED RESOLUTION NO. 2008 — 26.
3. Resolution Providing for the Sale of $3,725,000 General Obligation Water Revenue
Bonds, Series 2008B.
William Burns, City Manager, said the proceeds from this large bond issue will be used to cover
the costs of our 2008 and 2009 water system improvement projects. They include the following
proj ects:
1. Well Redevelopment - $130,000
2. Commons Park filter media replacement -$500,000
3. Repair and painting of Highway 65 water storage tank -$1,100,000
4. Replacement of Gardena Avenue water main -$150,000
5. Distribution system replacement - $620,000
6. Installation of variable frequency drives (soft starters) at two wells -$100,000
7. Repair and painting of the Commons Park elevated storage tank -$360,000
8. Repair and painting of the Commons Park reservoir -$70,000
Dr. Burns said we are bonding for two years of improvement costs in order to reduce overhead
for the bond issue. Staff recommends Council's approval.
ADOPTED RESOLUTION NO. 2008 — 27.
4. Receive Bids and Award Contract for the 2008 Gardena Avenue Rehabilitation Project
ST 2008-2.
William Burns, City Manager, said we opened bids from eight contractors on June 19. The low
bid is from North Valley Paving, of Nowthen, Minnesota in the amount of $323,858.35. The
low bid is lower than our budgeted amount of $337,400. Assuming a final cost of $330,000,
including construction engineering and testing, the revenues for this street overlay and water
main replacement project will be drawn from the following sources:
L MSAS Funding - $74,000
2. Water Fund - $136,000
3. Special Assessments - $120,000
Dr. Burns said staff recommends the award of the contract to the low bidder, North Valley
Paving, Inc.
FRIDLEY CITY COUNCIL MEETING OF JUNE 23, 2008 PAGE 4
RECEIVED BIDS AND AWARDED CONTRACT TO NORTH VALLEY PAVING, INC.,
IN THE AMOUNT OF $323,858.35.
5. Appointments to Commissions.
William Burns, City Manager, said that Staff recommends the following commission
appointments:
1. Denise Milks — Environmental Quality & Energy Commission
2. Christopher Anderson - Appeals Commission
3. Del Jenkins - Appeals Commission
APPROVED.
6. Claims (137107 — 137318).
APPROVED.
7. Licenses.
APPROVED THE LICENSES AS SUBMITTED AND AS ON FILE.
APPROVAL OF PROPOSED CONSENT AGENDA:
Councilmember Bolkcom asked to amend the City Council minutes of June 9, 2008, on Page
11, by changing "shore" to "short."
MOTION by Councilmember Bolkcom to approve the consent agenda with the minutes as
amended. Seconded by Councilmember Saefke.
UPON VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION
CARRIED UNANIMOUSLY.
ADOPTION OF AGENDA:
MOTION by Councilmember Bolkcom to adopt the agenda as presented. Seconded by
Councilmember Saefke.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
OPEN FORUM (VISITORS):
No one from the audience spoke.
FRIDLEY CITY COUNCIL MEETING OF JUNE 23, 2008 PAGE 5
PUBLIC HEARING:
8. Consider an Ordinance under Section 12.06 of the City Chapter Declaring Certain Real
Estate to be Surplus and Authorizing the Sale of Thereof, Generally Located on
Springbrook Creek Near the intersection of Broad Avenue and 79t'' Way (Continued
May 19, 2008).
MOTION by Councilmember Bolkcom to remove this item from the table and open the public
hearing. Seconded by Councilmember Saefke.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING WAS OPEN AT
8:05 P.M.
Scott Hickok, Community Development Director, said Planning staff was contacted by Justin
Chapweske, the owner of a single family home at 530 Dover Street, over a year ago. He
indicated that he was interested in purchasing the land south of his property, which is owned by
the City. He said he had concerns about erosion and wanted to have control of the land in case he
needed to build a retaining wall in the future to protect his home. Legal counsel advised staff that
the City Council would need to declare the property excess and authorize the land sale before
Mr. Chapweske could sign the purchase agreement for the property.
Mr. Hickok said that on May 19, 2008, the City Council held a public hearing regarding the
potential land sale. Mr. Chapweske was unable to attend this meeting due to his business travel
plans. At the hearing another property owner abutting the City-owned lots, Garland LaGesse,
testified. Mr. LaGesse, who lives at 7951 Broad Avenue, said he preferred that the City not sell
the property. He was willing to meet with his neighbor, however, to determine if there was a
compromise. That hearing was continued to today to allow these two neighbors to meet and
develop a recommendation to the City for a split sale of the five lots.
Mr. Hickok said that both parties have met twice since the May 19 Council meeting. Staff has
been unable to coordinate a meeting of all three parties involved due to Mr. Chapweske's work
schedule. Mr. LaGesse continues to convey to staff that he prefers that the City not sell this
property. Mr. Chapweske has indicated to staff that he is willing to purchase only three of the
lots, if that is more agreeable to the City and his neighbor, or he is willing to purchase all five
lots and sell the two westerly lots, Lots 7 and 8, to Mr. LaGesse at a later date. Retaining two of
the five lots is not in the City's best interests, as there will likely be confusion in the future as to
property boundaries and maintenance of this wooded area.
Mr. Hickok said since the City needs to retain access to this part of Springbrook Creek through
an easement, it is much more reasonable for the City to sell all five lots or none of them. In
addition, by selling these lots, the City would gain tax revenues, because gaining creek access
will increase the private property value of Mr. Chapweske's property. Staff recommends that the
City Council open the public hearing for consideration of declaring Lots 4-8, Block M,
Riverview Heights, excess and authorizing the sale, which was continued from May 19. The
first reading of the ordinance related to this item is scheduled for July 14, 2008.
FRIDLEY CITY COUNCIL MEETING OF JUNE 23, 2008 PAGE 6
Councilmember Bolkcom asked who would bear the cost for the transfer of title, lot survey, etc.
Mr. Hickok said that all costs would be paid by the new owner of the property.
Councilmember Bolkcom said that the first step in this process is to declare the property as
surplus, not to decide who will buy the property.
Mr. Hickok said that is correct. Utility easement and other pertinent issues will also need to be
worked out.
Councilmember Bolkcom asked if the property needed to be owned by the City to maintain the
easement.
Mr. Hickok said that if we sell the property, the City will still maintain the utility and drainage
easements.
Fritz Knaak, City Attorney, said that the issue tonight is to determine the lots surplus property.
In order to sell the property it first must be determined if the property is needed by the City. If
the property is not needed by the City for any useful purpose, the city may sell the property but is
not required to sell the property.
Councilmember Bolkcom asked if this process was the standard procedure.
Mr. Hickok answered that this is the same process that has been done in the past., but the City
has never experienced two buyers.
Mayor Lund said that on the map, these lots look big enough to build a home on the property.
Mr. Hickok said that the map is very deceiving. Buffalo Street appears to go through but it is a
right of way. There are also issues with the setback to the site, creek preservation and shore land
overlay. If the land is not able to be built on and has no use to the City, the land may as well be
owned by the adjacent property owners.
Justin Chapweske, 530 Dover Street, said this area could not have any development on it. He
said he is an environmentalist and would intend to keep the property in its natural state. His
property is on the top of a hill and the grade of the hill is about a 45 degree slope. Erosion
prevention is an issue and he feels it is his personal responsibility to maintain this property to
protect his home. The property does not have sufficient vegetation, erosion problems are present
and deterioration of trees is an issue. Currently a lot of trees have fallen which creates hazards in
the area. The debris on this site is also choking out the growth of new vegetation.
Mr. Chapweske said there is not access to this lot. The marketability of this lot is only of
interest to adjacent land owners. He is interested in buying all 5 lots or splitting and sharing the
responsibility with Mr. LaGesse.
FRIDLEY CITY COUNCIL MEETING OF JUNE 23, 2008 PAGE 7
Mayor Lund asked how long Mr. Chapweske has lived on the property.
Mr. Chapweske answered two years.
Mayor Lund asked if he currently mows or keeps up the property.
Mr. Chapweske answered no.
Mayor Lund asked Mr. Chapweske if he understood that there will be limited use of the
property.
Mr. Chapweske answered yes.
Mayor Lund asked if the restrictions for usage of this property would be in place for any future
owners of the property and if that would be a problem.
Mr. Chapweske said he would want the restrictions in place for future owners in order to keep
the land in its natural state.
Mayor Lund asked if the property was split, if the owners would be able to put up a fence to
define the split.
Mr. Hickok said they could put up a rail fence, but not a privacy fence.
Mr. LaGesse, 7951 Broad Avenue, said he has lived on the property for 30 plus years. At the
last meeting he did not have enough information to make a decision. After meeting with staff
and his neighbor, he would want the City not to sell the lots, sell Mr. Chapweske 3 lots and do
not sell the other 21ots, or sell Mr. Chapweske 3 lots and the other two lots to him. He asked if
they could all meet to discuss the details.
Mayor Lund said that he was sensitive to Mr. LaGesse's and Mr. Chapweske's needs but
tonight's focus is to determine if the property is surplus property. The next step would be to
decide to sell or not to sell and work out the split.
Councilmember Saefke asked for clarification that tonight is to decide if the property is surplus
and if it is, whether a time could be set for the adjacent property owners to meet with staff to
come to an agreement to work out the details on a split.
Mayor Lund said that is correct.
MOTION by Councilmember Bolkcom to close the public hearing. Seconded by
Councilmember Saefke.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING CLOSED AT
8:36 P.M.
FRIDLEY CITY COUNCIL MEETING OF JUNE 23, 2008 PAGE 8
9. Consider Revocation of Special Use Permit SP #06-08, for Fridley Shop and Stop
(Formerly Sinclair Fridley), 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 May 5, 2008).
MOTION by Councilmember Saefke to remove this item from the table and open the public
hearing. Seconded by Councilmember Bolkcom.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING WAS OPENED
AT 8:37 P.M.
Scott Hickok, Community Development Director, said that on May 5, 2008, the City Council
continued a public hearing from February regarding the revocation of Special Use Permit, SP
#06-08, for the property located at 6071 University Avenue NE. The hearing was continued
because the Fridley HRA was possibly going to purchase the property. The HRA would likely be
changing the use of the property, making the SUP unnecessary, giving the City Council reason to
revoke the permit under the new ownership.
Mr. Hickok said the sale of the property has been unexpectedly further delayed, and it may be
many months before negotiations are complete. Since the property owner of the Fridley Shop
and Stop (formerly Sinclair Fridley), has kept the property in compliance for several months now
and there have been no public complaints regarding the property's condition, staff believes it is
unreasonable to hold the public hearing open again for several months.
Mr. Hickok said Staff recommends that the City Council open and close the public hearing to
consider revocation of Special Use Permit #06-08 for Fridley Shop and Stop, located at 6071
University Avenue NE. In a separate action, staff recommends that the City Council not approve
the previously prepared resolution to revoke Special Use Permit, SP #06-08. If the HRA
completes its sale of the property at a later date, legal counsel advises that the HRA clear the
special use permit from the record on this property if the intent is that it not be used as an
automobile service station under the current stipulations. Without revocation following a public
hearing a special use permit will remain on record for this property even after the use
discontinues.
Councilmember Saefke asked why there is a delay in purchasing the property.
Mr. Hickok said the HRA wants to make sure there is no contamination on the site.
MOTION by Councilmember Saefke to close the public hearing. Seconded by Councilmember
Bolkcom.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING CLOSED AT
8:40 P.M.
FRIDLEY CITY COUNCIL MEETING OF JUNE 23, 2008 PAGE 9
OLD BUSINESS:
10. 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 May 5, 2008).
MOTION by Councilmember Saefke to deny the resolution revoking Special Use Permit, SP
#06-08. Seconded by Councilmember Barnette.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY
NEW BUSINESS:
11. First Reading of an Ordinance Amending the Fridley Home Rule Charter, Chapter 2.
City Council Organization, Chapter 3. Procedure of Council, Chapter 4. Nominations
and Elections, Chapter 5. Initiative, Referendum, and Recall and Chapter 6.
Administration of City Affairs.
Richard Pribyl, Finance Director, said at the Council meeting of June 9, a public hearing was
held to review the changes suggested by the Charter Commission. These changes were seen as
keeping the Charter in compliance with State Statutes and also modifying some language to keep
it consistent throughout the document.
Mr. Pribyl said during the public hearing Councilmember Bolkcom asked about the existing
language in "Section 3.02 SECRETARY OF COLJNCIL." She asked whether the current
language implied that a secretary was required to be in attendance at Council conference
meetings and that minutes be taken. After discussing this issue with the City Attorney, it was
determined that the current language is still appropriate and does not imply that a secretary be
present at conference meetings or that minutes are required. This conclusion continues to be
based on the fact that no action is being taken by Council at any of these types of ineetings.
Based on the review with the City Attorney and since there were no suggested changes as a
result of the public hearing held on June 9, 2008, staff recommends the approval of the first
reading of the ordinance making the changes.
MOTION by Councilmember Bolkcom to waive the reading of the ordinance and approve the
ordinance on first reading. Seconded by Councilmember Varichak.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY
FRIDLEY CITY COUNCIL MEETING OF JUNE 23, 2008 PAGE 10
12. Receive Bids and Award Contract to Provide a Comprehensive Water and Sewer
Rate Study for the City of Fridley.
Richard Pribyl, Finance Director, said staff developed a request for proposal that was sent to
three engineering firms that specialize in rate studies. Two firms replied. Staff reviewed each of
the two proposals and found them to be very similar including pricing. One of the firms seemed
to have more specialization with rate studies. Staff contacted the references and again found
them to be very complementary on both firms. The study will analyze both the water rates and
sewer rates and consumption histories will be developed by customer type. Three different water
rate structures will be developed for the water utility: a base line structure that associates cost of
water by customer class will be developed, an Increasing block structure with a fixed cost
component will also be analyzed and water conservation rates will be also be reviewed as a part
of this study.
Mr. Pribyl said the aging meter inventory will also be reviewed to determine whether a meter
change-out would provide additional revenues to possibly support an Automated Meter Reading
Program. The sewer rate structure will be reviewed to determine the best rate structure given the
current self-read metering program. After review of the two proposals and follow up reference
checks, staff recommends Council make a motion to approve Progressive Consulting Engineers,
Inc. as the City's consultant provide a"Comprehensive Water and Sewer Rate Study" at a cost
not to exceed $30,000.
MOTION by Councilmember Saefke to receive the bids and award the contract for a
Comprehensive Water and Sewer Rate Study for the City of Fridley to Progressive Consulting
Engineers, Inc., in an amount not to exceed $30,000. Seconded by Councilmember Barnette.
UPON VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION
CARRIED UNANIMOUSLY
Presentation of Retirement Plaques to Robert Bennek and Clint Coppicus.
Mayor Lund presented retirement plaques to Robert Bennek (20 years) and Clint Coppicus (30
years) and thanked them for their years of service.
13. Informal Status Reports.
Councilmember Bolkcom said she had a chance to work at the recycling drop-off event and
was amazed with the number of electronics people had to drop of£ It was a successful event.
She also mentioned that the `49er Days parade was great.
Councilmember Saefke said he thought the fireworks were spectacular. A lot of people came to
see them.
Councilmember Varichak congratulated Mayor Lund and his wife on their daughter's new title
of Miss Fridley 2008.
FRIDLEY CITY COUNCIL MEETING OF JUNE 23, 2008 PAGE 11
Mayor Lund thanked Pete Borman for coordinating the `49er Days events.
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 9:00 P.M.
Respectfully Submitted,
Krista Monsrud Scott J. Lund
Recording Secretary Mayor