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03/23/2009 - 29226CITY COUNCIL MEETING CITY OF FRIDLEY MARCH 23, 2009 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: James Kosluchar, Public Works Director Richard Pribyl, Finance Director Scott Hickok, Community Development Director Fritz Knaak, City Attorney APPROVAL OF MINUTES: City Council Meeting of March 9, 2009. APPROVED. APPROVAL OF PROPOSED CONSENT AGENDA: NEW BUSINESS: 1. Receive Bids and Award Contract for the 2009 Sanitary Sewer Lining Project No. 383. Richard Pribyl, Finance Director, said the City opened four bids on March 12, 2009. The low bidder was Veit Specialty Contracting & Waste Management from Rogers, Minnesota, in the amount of $154,785. Since the amount is within the budget and below our estimate, staff recommends the contract be awarded to the low bidder. RECEIVED BIDS AND AWARDED CONTRACT TO VEIT SPECIALTY CONTRACTING & WASTE MANAGEMENT IN THE AMOUNT OF $154,785. 2. Receive bids and Award Contract for the 2009 Miscellaneous Concrete Repair Project No. 384. Richard Pribyl, Finance Director, said the City opened six bids on March 12, 2009. The low bid was submitted by Ron Kassa Construction, Inc., of Elko, MN, in the amount of $57,800. Since the low bid was within our budget for 2009 and was submitted by a contractor with whom FRIDLEY CITY COUNCIL MEETING OF MARCH 23, 2009 PAGE 2 we have had favorable past experience, staff recommends the bid be awarded to the low bidder in the amount of $57,800. RECEIVED BIDS AND AWARDED CONTRACT TO RON KASSA CONSTRUCTION, INC., IN THE AMOUNT OF $57,800. 3. Receive Plans and Authorize Advertisement for Bids for the Municipal Parking Ramp Repairs Project No. 381. Richard Pribyl, Finance Director, said Ulteig Engineering has prepared design of the initial and most critical work needed to repair the City's Municipal Center parking ramp. This work was determined necessary when an assessment of the 20-year old structure was prepared in the fall of 2007. The City has budgeted $45,000 for this work in its 2009 General CIP budget. Staff recommends Council's approval to advertise for bids for the work. RECEIVED PLANS AND AUTHORIZED ADVERTISEMENT FOR BIDS FOR THE MUNICIPAL PARKING RAMP REPAIRS PREJECT NO. 381. 4. Approve 2009 Reappointments to City Commissions. Richard Pribyl, Finance Director, said with the exception of the HRA, all other commissions have 3-year terms. Planning Commission Chair Dave Kondrick's term expires on April 1. Mr. Kondrick was appointed last year to serve the remainder of Diane Savage's term. He would like to be reappointed. Mr. Pribyl said the terms of Appeals Commission members Brad Sielaff (Chair) and Matthew Brown expire on April 1. They would both like to be reappointed. The terms of Environmental Quality and Energy Commission members Richard Svanda and Martina Nelson expire on April 1. Staff has been able to contact them, and they would both like to be reappointed. Mr. Pribyl said the terms of Parks & Recreation Commission members Marcy Sibell (Chair) and Dave Kondrick expire on April 1. They would both like to be reappointed. The term of HRA member Larry Commers (Chair) does not expire until June 9. We will bring this item to Council at a future meeting closer to June. APPROVED THE REAPPOINTMENTS OF THE FOLLOWING COMMISSION MEMBERS: DAVID KONDRICK, BRAD SIELAFF, MATTHEW BROWN, RICHARD SVANDA, MARTINA NELSON, AND MARCY SIBELL. 5. Claims (140934 — 141109). APPROVED. 6. Licenses. APPROVED THE LICENSES AS SUBMITTED AND AS ON FILE. FRIDLEY CITY COUNCIL MEETING OF MARCH 23, 2009 PAGE 3 7. Estimates. APPROVED THE FOLLOWING ESTIMATE: Classic Protective Coatings N7670 State Highway 25 Menomonie, WI 54751 Water Tower #2 Rehabilitation Project #378 EstimateNo. 3 ..............................................................................$ 37,113.50 MOTION by Councilmember Barnette to approve the Consent Agenda. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. ADOPTION OF AGENDA: MOTION by Councilmember Bolkcom to adopt the agenda. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. OPEN FORUM (VISITORS): No one in the audience spoke. OLD BUSINESS: 8. Resolution and Findings of Fact Denying Use of Park Land for Private Purpose by the Owners of the Property at 1634 Gardena Avenue, Wayne and Kellie Liepke (Ward 2). Scott Hickok, Community Development Director, said this item was presented before the Appeals Commission in September of 2008. This item relates to property at 1634 Gardena Avenue and is directly related to using park land for private purposes. The Parks and Recreation Department surveyed the property in this area and discovered there were a number of properties that had encroachments on to park property. All encroachments have been taken care of with the exception of this property. The resolution matches the Appeals Commission findings of facts. This is a public nuisance, using public property for private purposes. The abatement process has an additional 25% administrative costs associated with the process. Staff would like to declare this as a public nuisance and authorize an abatement to correct the problem. Staff recommends Council's approval. Councilmember Varichak asked if there has been any contact with Mr. Liepke besides February 23 when Mr. Liepke had contact with staff. FRIDLEY CITY COUNCIL MEETING OF MARCH 23, 2009 PAGE 4 Mr. Hickok said before Christmas, Mr. Liepke called and indicated that he would like to wait until after the holiday season to go forward with the planning process. He also contacted Mr. Kirk to discuss some other things. Mr. Liepke said he was waiting for his partner to arrive home, but to date a plan has not been submitted. Councilmember Varichak asked what kind of abatement would take place and how much it would cost. Mr. Hickok said the Parks and Recreation Department did not get an opportunity to express what they would like to see in that area. Mr. Liepke was talking about putting in native grasses but staff did not have an opportunity to evaluate alternatives in that area. If the perennials are removed, the area would almost be in a natural state. As far as cost goes, it could take about 12 hours at $35 per hour plus the 25% administrative fee which would be about $625. Councilmember Bolkcom said she was incredibly surprised that nothing has happened since December 8. The City is trying to compromise with Mr. Liepke and nothing happened. She asked how much time would be given to Mr. Liepke to do the work on his own if the resolution were passed tonight. Mr. Hickok said Mr. Liepke would have 45 days and right now is a good time to transplant perennials. Anything beyond 45 days would be abatable and the City would take care of the area and charge the costs back Mr. Liepke. Councilmember Bolkcom asked what would be done with the area after the perennials were removed. Mr. Hickok said staff does not want holes left in the area. Plants would need to be taken out and fill would have to be put back in. Jack Kirk, Parks and Recreation Director, said he did not anticipate planting any new plants but agreed that the holes would need to be filled. The intention is to let the area go natural. Mayor Lund said if the resolution was approved, it would not give Mr. Liepke the okay to go in and remove any plants and add native grass. Mr. Hickok said if Council wanted to give the owner 45 days to take care of things, that would be okay with staff. The abatement was to occur before September of last year and by virtue of appeal, e�tra time was given. Mr. Kirk said last September he was okay with the homeowner taking plantings out of the area and he still feels the same way. If Mr. Liepke chose to abandon the plantings, that would be his choice. Mayor Lund said maybe an additional item should be added stating that if Mr. Liepke would like to remove the plant, he would have 45 days to remove plants and vegetation. However, in no case can anything be dug out or removed without approval of City staff. If the plantings are FRIDLEY CITY COUNCIL MEETING OF MARCH 23, 2009 PAGE 5 not removed, the plantings become City property and may be removed and planted in other areas of the City. Councilmember Bolkcom recalled that in the normal abatement process, the property owner has time to take care of the property. Mr. Hickok said time has been given but final action is waiting on Council's decision. When Council makes a final decision, the Liepkes will be granted time. Fritz Knaak, City Attorney, said technically the Liepkes do not have to do anything until the resolution is passed. When the abatement occurs, the person whose property is being abated will offer a proposal because removing the plants is an expense to the City and the cost of the abatement is the property owners' responsibility. The cost is associated with removal of flowers and there would be costs charged back to the property owner. The way to avoid the abatement charges is to remove the plants themselves. Technically the plants belong to the City because they are on city property. If the Liepkes remove the plants themselves, the City does not have to spend staff time and the cost will not be accessed to them. The City has been very flexible and offered the Liepkes the opportunity to remove the plants without penalty. The amount of the abatement depends on the amount of plants that need to be removed. It would be best if something can be worked out with the Liepkes. Councilmember Barnette said if the Liepkes decide to leave the plants and the City decides to remove the plants at a later date, would there still be a charge to Mr. Liepke to remove the plants. Councilmember Bolkcom asked why the City would wait to remove the plants. If the abatement process goes through, the City should take care of the plants now. Attorney Knaak said technically the plants are on the park property and requiring their removal and is abatable. The abatement cost would be assessable to the Liepkes. The City has alternatively offered the owner the option to remove the plants themselves. Councilmember Bolkcom thought this should be treated like anything else. The Liepkes should be given 45 days to remove the plants and if the plants are not removed, they will be charged for removal of the plants. Councilmember Saefke said another problem was that Mr. Liepke was cutting the grass as a private yard. A large part of the abatement is to quit maintaining the property. Leaving the plants was an option. The plantings do have value, so whether the plants are sprayed with Roundup or are transplanted, it would be a park decision. Councilmember Barnette said if Mr. Liepke does not do anything to the property and a year later the City decides to remove the plants, would the City then charge the property owner? Mayor Lund said it is the City's decision and the City would have the right to charge the owner. Councilmember Bolkcom said in all fairness, this should have been taken care of in September. FRIDLEY CITY COUNCIL MEETING OF MARCH 23, 2009 PAGE 6 Mayor Lund said Mr. Liepke had until tonight to bring forth a plan to take out the plants and plant some native grass. Wayne Liepke, Property owner, said originally, he thought the plants that were currently there would stay. He called Mr. Kirk and Mr. Kirk said the City would remove plants that were left behind. Mr. Liepke said he understood from the resolution the plants did not have to be removed. Originally, the resolution just involved the hard scape items. There was no talk about the abatement of the plants. Letting the plants stay would be somewhat of a compromise. Mr. Liepke said he did not want to remove everything and have to replace it with something else. That is why he did not come forward with a proposal. He said he was open to Mayor Lund's proposal of removing everything that needs to be removed in 45 days. Councilmember Bolkcom said she was surprised after the meeting on December 8 that a plan did not follow and no communication was made with Mr. Kirk She asked if there was some kind of misunderstanding. Mr. Liepke said he was naive on how much time things take but thought the decision was already made by Mr. Kirk for all plants to be removed. At that time he said he decided that he would not come up with a proposal as it seemed the plan had already been decided. Mayor Lund said that on February 27, Mr. Liepke was supposed to talk with his partner and discuss a proposal. It was clear that a proposal would be submitted and an agreement would be made on which plants could stay and which ones would be removed. Mr. Liepke said that at the time of the proposal, he thought the plants could stay and he just could not garden there anymore. That was when he proposed to plant some natural grasses to add to the plantings. Mayor Lund said Council will give Mr. Liepke 45 days to remove the plants and discuss with Mr. Kirk which plants can stay and which ones have to be removed. Mr. Liepke is fully aware tonight that if there are things that need to be done, it would be at Mr. Liepke's expense. Any plants not native to the area will have to be removed. Councilmember Bolkcom said that Mr. Kirk heard that a proposal would come forward. Too bad Mr. Liepke did not contact a Council member if he understood something different. A compromise could have been worked out. It will be difficult at this point to figure out what should go and what should stay. Richard Pribyl said that he heard from Mr. Kirk that most of the perennials are not native to the area and will need to be removed. The vegetation is not native to the area and it is staff's recommendation to remove all plantings from the area. Councilmember Bolkcom said that is why Council asked for a plan to be worked out. FRIDLEY CITY COUNCIL MEETING OF MARCH 23, 2009 PAGE 7 Mr. Hickok said it is City property and if the Parks and Recreation Department decides to take out the plants, they can. Mr. Liepke relinquished his rights to the plants. None of the plants are native to the park and will not successfully blend in with the area. An alternative plan was never discussed with staff and Mr. Kirk never wanted any of the plants left on the site. Mayor Lund said Mr. Liepke said he understood that within 45 days, he will take out what he wants and he will be charged for the removal of anything that is left. Mr. Kirk said that hosta plants could be removed and replanted where they would be more appropriate. He said when he spoke with Mr. Liepke at the end of February, they discussed that some of the plants could be moved to some of the City parks. He never told Mr. Liepke the perennial gardens could stay there. Councilmember Bolkcom said the City would not have to remove the plants if they were not there in the first place. If the natural state is the goal and the plants are not removed, Mr. Liepke should be charged for the removal of the plants. Mayor Lund said if Council approves, the charge to remove the plants will be abatable. Mr. Liepke said he understands it is an abatable charge. Ultimately it would be best if the property owner contact staff and if all the plants have to go, Mr. Liepke takes care of it. If the City removes the plants the cost will be charged to Mr. Liepke. Councilmember Barnette asked about Numbers 2 and 6. Councilmember Bolkcom said that those are in the findings of facts. Attorney Knaak said the resolution would be better without Items 2 and 6, but it is not necessary. Mayor Lund said that Mr. Liepke understands that abatement means charges to him. Councilmember Bolkcom asked about the 45 days and if something would need to be put in there in writing or if that is normal procedure. Attorney Knaak said if Council wanted to protect the owner they could say the abatement will not be enforced for a period of 45 days. It will survive without it but there is no harm in being clear. The language of "no abatement by the City shall be taken for 45 days from the date of the resolution" could be added. MOTION by Councilmember Varichak to adopt Resolution No. 2009-18. Seconded by Councilmember Saefke. UPON VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF MARCH 23, 2009 PAGE 8 MOTION by Councilmember Varichak to add No. 9 to the resolution as follows: "No abatement by the City shall be taken for 45 days from the date of the resolution." Seconded by Councilmember Bolkcom. UPON VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. NEW BUSINESS: 9. Resolution Authorizing Changes in Appropriations for the 2009 Budget for January through March, 2009. Rick Pribyl, Finance Director, said over the past 60 days the City Manager, department managers, and Council met to discuss budget adjustments needed because of cutbacks in State LGA funding for 2009. The LGA reduction amounted to $545,761 for 2009. The budget reductions identified in the attached resolution total $611,041. Staff has also identified revenue modifications that total $167,000. The revenue modifications will not be adjusted but will result in a positive variance to actual revenues at year-end. Mr. Pribyl said the adjustments were based on the following assumptions: there would be no further LGA cuts by the State of Minnesota; and these changes will allow the City to maintain the cash balance and working capital projections made during 2008 for the 2009 budget. With these adjustments, there will continue to be a budgeted $1.6 million General Fund operating deficit that will need to be addressed in the future by additional revenues. These cuts are considered to be temporary. Mr. Pribyl reviewed the revenue adjustments: temporarily rededicate Parks Capital levy to the General Fund -$107,000, adjust General Fund overhead charge to utility funds -$50,000, other fee adjustments, including rental inspection fees -$10,000. These changes will result in a positive variance to revenues at year-end. Mr. Pribyl reviewed the following expenditure adjustments: health Insurance adjustments - $117,832, reduction in the Wellness Program -$14,293, Fuels and Lubes reduction -$137,842, Dues and Subscriptions reduction -$3,854, Transportation reduction -$8,849, elimination of the Contract Building inspector -$30,000, elimination of the Citizen Survey -$25,000, reduction in conferences and schools -$44,597, IT depreciation adjustment -$154,169, summer intern elimination -$19,105, elimination of one Police squad -$24,500, elimination of the University Avenue corridor maintenance -$25,000, and reduction of the Police IT Consultant -$6,000. Mr. Pribyl said that the General Fund Adjustments are as follows: TOTAL REVENUE ADJUSTMENTS: $167,000 TOTAL EXPENDITURE REDUCTIONS: 611,041 TOTAL ADJUSTMENTS: $778,041 FRIDLEY CITY COUNCIL MEETING OF MARCH 23, 2009 PAGE 9 These adjustments are considered temporary and the cuts fall short of cutting services and eliminating jobs. In order to keep offering similar scope of services, the City will need to find new sources of revenue. Due to the reduction in the General Fund, similar changes were made throughout the other budgeted funds. The changes are as follows: Cable TV Fund — reduction of $2,218, Grant Management — reduction of $13,209, Solid Waste Abatement — reduction of $691, Police Activity — reduction of $125, and Springbrook Nature Center — reduction of $8,452. Mr. Pribyl said that due to the shift of tax levy in the amount of $107,000 from the Parks CIP for 2009, the Parks and Recreation Commission recommended corresponding reductions in the CIP for 2009 as shown on the resolution. Mr. Pribyl said the possible impacts to City services with these reductions include loss of mowing of main transportation corridor on University Avenue (MnDOT may cut twice this summer), less reliability of the Police fleet with one vehicle down, putting more maintenance stress on other vehicles, staff will not have the opportunity to bring back new innovative information disclosed at each of the professional organizations of the various disciplines in the City, and the Parks Capital items will not be completed. MOTION by Councilmember Saefke to adopt Resolution No. 2009-19. Seconded by Councilmember Bolkcom. UPON VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY 10. Informal Status Reports. Councilmember Bolkcom said a meeting will be held for the Glen Creek Property Owners on Apri17 from 6:30 p.m. to 7:30 p.m. at City Hall. Mayor Lund said the Empty Bowls fundraiser is scheduled for tomorrow night from 4:30 p.m. to 7:30 p.m. There will be a free-will offering and proceeds go to the food shelf. 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 8:42 P.M. Respectfully Submitted, Krista Monsrud Scott J. Lund Recording Secretary Mayor