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02/13/2012 - 31304CITY COUNCIL MEETING CITY OF FRIDLEY FEBRUARY 13, 2012 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 Bolkcom Councilmember Varichak Councilmember Saefke OTHERS PRESENT: William Burns, City Manager Darcy Erickson, City Attorney Jim Kosluchar, Public Works Director Scott Hickok, Community Development Director Julie Jones, Planning Manager Darin Nelson, Finance Director PRESENTATION: Fridley Fire Department Flames Auxiliary presented three Rapid Intervention Team (RIT) bags to the Fridley Fire Department. Fridley Flames were able to purchase these bags through fund- raising efforts. John Berg, Fire Chief, said the RIT bags contain tools to rescue a firefighter in case of problems. The bag primarily houses an air supply, mask hoses, and tools for cutting and pulling. APPROVAL OF PROPOSED CONSENT AGENDA: OLD BUSINESS: 1. Second Reading of an Ordinance Amending Chapter 2, Section 2.06, of the Fridley city Charter, to Allow for a Vacancy of a Council Member to be Filled by Appointment William Burns, City Manager, said this amendment would allow a Council vacancy to be filled by appointment rather than by special election. Council held the public hearing on the amendment at their January 23 meeting and the first reading at their meeting on February 6. Staff recommends Council's approval of the second and final reading. WAIVE THE READING OF THE ORDINANCE AND ADOPTED ORDINANCE NO. 1289 ON SECOND READING AND ORDERED PUBLICATION. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 13, 2012 PAGE 2 NEW BUSINESS: 2. Motion to Receive a Donation of Three Rapid Intervention Team (RIT) Bags from the Fridley Fire Department Flames Auxiliary William Burns, City Manager, said that the FLAMES conduct many volunteer activities and fundraising events to support the Fridley Fire Department and address other community needs. Council is being asked to officially accept the most recent donation of Rapid Intervention Team (RIT) bags at tonight's meeting. The bags carry air supply and other essential tools for rescuing firefighters. Staff recommends Council's approval. APPROVED. 3. Appointment to Appeals Commission. William Burns, City Manager, said Council met with applicants for the vacancy on the Appeals Commission at their February 6 pre-meeting. Based on these reviews, staff recommends the appointment of David Ostwald to the Fridley Appeals Commission. The term is a three-year term which expires on April 1, 2015. David Ostwald is a 35-year resident of Fridley who lives on East River Road. APPOINTED DAVID OSTWALD TO THE FRIDLEY APPEALS COMMISSION. 4. Claims (154003 — 154081). APPROVED. 5. Licenses. APPROVED THE LICENSES AS SUBMITTED AND AS ON FILE. APPROVAL OF 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 adopt the Agenda as presented. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 13, 2012 PAGE 3 OPEN FORUM VISITORS: NO ONE FROM THE AUDIENCE SPOKE. PUBLIC HEARINGS: 6. Preliminary Assessment Hearing for Street Rehabilitation Project No. ST2012-01. MOTION by Councilmember Saefke to waive the reading of the public hearing notice and open the public hearing. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING OPENED AT 7:43 P.M. Layne Otteson, Assistant Public Works Director, said the City has developed a pavement improvement plan based on rehabilitating the pavement with intermittent sealcoating. The goal is to provide maintenance improvements at regular times. This project is in its eighth year under the City's major maintenance program for asphalt streets that have concrete curb and gutter. Mr. Otteson said this program was developed to rehabilitate the deteriorated asphalt surface on a recurring schedule. The program targets pavements of a condition where pothole patching, crack sealing, and sealcoating are no longer sufficient to efficiently maintain a quality surface. Mr. Otteson reviewed the Street Program Rationale Annual Street Rehabilitation Program: • Increasing cost of maintenance and repair with age • Condition rating of street • Group streets into project areas • Pricing advantage with volume • Planned project for 2012 developed under 5-year street program Mr. Otteson said this project has a poor condition rating of streets which gives initiative to a rehabilitation project. Factors used to establish the condition rating based on annual inspections include surface wear, weathering, skid resistance, uniformity, crack size and condition and the overall ride quality. Other factors affect the prioritization of projects include: • Street does require reconstruction to meet standards (base, width, curbing, etc.) • Time since last major maintenance • Interim maintenance work performed/required • Need for utility construction • Adjacent project activity • Source(s) of funding available FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 13, 2012 PAGE 4 Mr. Otteson said project ST2012-01 will include thirteen residential street segments that will receive 6" reclaim and 2" asphalt surfacing. Fourmies Avenue and TH 65 Service Road segments will receive 8" reclaim and 3" asphalt surfacing due to traffic loading. Two segments of water main replacement and minor underground utility repairs should precede mill and overlay. The water main replacement and pavement rehabilitation is expected to be completed within 10 weeks of the start date. Construction would be from mid-May through mid-August 2012. Mr. Otteson said when reclaiming the street, the driveway will not be accessible as the machine goes by the driveway for about one to two minutes. When paving the street, streets will be closed for about four hours except for emergency reasons because the pavement is tender during that time. Mr. Otteson said the project kickoff letter will be mailed in April with schedule information, contact information and other general information. Project updates specific to areas will be distributed with revised schedules, immediate work schedule, access limitations, contacts and other specific information. Residents should look for "Yellow Sheets" on their doors for updates. They are encouraged to notify staff of any special needs for access to their property during construction or any other questions or concerns. Mr. Otteson reviewed the following project schedule: Open House Public Hearing Open Bids Begin Construction Complete Construction Public Hearing to Set Special Assessment Assessment Begin (Payment Plan) November 2011 February 2012 March 2012 May or June 2012 August 2012 October 2012 January 2013 Mr. Otteson noted property owners were sent mailings of the notice of an open house in 2011 plus a project questionnaire to be mailed or filled out on the City website in 2011. The public notice of this public hearing was also sent out including the estimated special assessment based on policy. Mr. Otteson said the estimated project cost is $971,000 (includes contingency). He reviewed the following breakdown of costs: •$199,000 City of Fridley Municipal State Aid •$518,000 Special Assessment of Adjacent Properties o $429,000 Residential Properties o $ 89,000 Commercial Properties • $200,000 from Water Utility Fund •$ 21,000 from Sanitary Sewer Utility Fund •$ 33,000 from Storm Water Utility Fund FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 13, 2012 PAGE 5 Mr. Otteson reviewed the following Non LDR Property Assessment Recent Rates: • 2006-2 Matterhorn Drive 4 0' Wide $24.09 / l.f. 73rd Avenue 48' Wide $29.80 / l.f. • 2007-2 7th Street 38' Wide $20.07 / l.f. 61st Avenue 44' Wide $27.18 / l.f. • 2008-2 Gardena Drive 42' Wide $24.53 / l.f. • 2009-1 University W. Service Drive 30' Wide $16.46 / l.f. • 2011-1 City Wide 50' Wide $37.00 / l.f. • 2012-1 Fourmies Avenue 26-36' Wide $30-40 / l.f. TH 65 Service Road 36' Wide $40.00 / l.f. Note: 2012 numbers are estimated cost per foot. Upon substantial completion of the project, a proposed assessment is recalculated for each property. Mr. Otteson reviewed the following LDR Property Assessment Recent Rates: • 2007-2 $ 941.46 per unit • 2008-2 $ 841.46 per unit • 2009-1 $1,023.00 per unit • 2009-2 $1,380.00 per unit • 2010-1 $1,370.00 per unit • 2011-1 $1,592.00 per unit • 2012-1 $1,950.00 per unit (estimated) Note: All LDR units receive equal assessment for each project. Mr. Otteson reviewed the three repayment assessment options: Option 1— Lump sum paid within 30 days of the assessment hearing (after construction). Option 2— Added to property taxes that are paid over 10 years with an interest rate of approximately 6.0%. Option 3— Senior citizens meeting certain criteria, may request to have the assessment deferred until the future sale of the property. Interest accrues until the sale. (Per City Res. No. 14-1995). Mr. Otteson reviewed assessment at 6%. Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 the following 10-year payment (approximate) based on a$1.950 Principal $195 $195 $195 $195 $195 $195 $195 $195 $195 $195 Interest Yearly Payment $117 $312 $105 $300 $ 94 $289 $ 82 $277 $ 70 $265 $ 59 $254 $ 47 $242 $ 35 $230 $ 23 $218 $ 12 $207 Total Payments $2,594 FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 13, 2012 PAGE 6 Councilmember Saefke noted a correction on page 17. In the second to the last paragraph, the date should be November 16, 2011. He also mentioned a letter was received from Kate Kemper from Michael Servetus Unitarian Church regarding the drainage issue on Oakley. He asked if Mr. Otteson has met with Ms. Kemper and if they were working on a resolution of the problem. Mr. Otteson said he has not met with Ms. Kemper but he spoke with her and reviewed the issue. The problem is mainly a maintenance issue and can be improved by replacing the curb. Staff has been on site to evaluate the slope of the curb and see how much improvement can be made. Staff observed and agreed that the curb slope can be improved and that it currently drains poorly. If leaves or silt build up, it slows the drainage down. The City needs to spend more time cleaning and maintaining that area. By replacing curb and putting on a deeper drainage slope, we should be able to increase flow to get the water away from the driveway and lessen the ice buildup in winter. Councilmember Saefke mentioned this street is difficult to plow as there is little room at the end of Oakley to turn around. He asked if the City ever considered building a cul-de-sac on Oakley. Jim Kosluchar, Public Works Director, said the issue of plowing has been discussed and now the plow can back down their driveway and push the snow across the street. Mr. Otteson is contemplating e�tending the street 20-30 feet and putting a drop at the end of the street to get the runoff and also creating a spillway to push material off of the street. MOTION by Councilmember Saefke to move into record the letter from Ms. Kemper for Michael Servetus Unitarian Church dated January 23, 2012. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Councilmember Bolkcom asked staff to explain how assessments are calculated. The Edina assesses citizens 100% for street improvements which could be anywhere from $12,000 to $22,000 dollars for a street project. St. Louis Park, through general property taxes, pays 100% for streets improvements. Both cities are looking at changing their policies. Mr. Otteson said Fridley residents are assessed for all work replacing the street asphalt only. They are not assessed for sidewalks, storm sewer or curb work. The assessment includes grinding the old asphalt up, installing slopes on gravel, hauling off excess gravel and a portion of mobilization and traffic control. The final item is the placement of the pavement which is 90% of the assessment. Councilmember Saefke added the City assesses on a street width of 30 feet. If a street is 45 feet wide, residents are only assessed for 30 feet. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 13, 2012 PAGE 7 Mr. Kosluchar noted that is for LDR Properties only. He added that the other exclusion is any utility work, water main or sewer work would be excluded from the residential assessment. That work is paid for with utility funds. Councilmember Barnette asked how the assessment is calculated for corner lots. Mr. Otteson answered for LDR Properties, it is assessed equally as if you lived in the middle of the block The assessment is per unit not per frontage. Councilmember Bolkcom asked if residents could still fill out the questionnaire if they have not done that yet. Mr. Otteson said staff is happy to receive any information. New residents should contact the Engineering Department for updated information. Councilmember Bolkcom said if residents have standing water problems, they should contact the Engineering Department as soon as possible so it can be incorporated into the project. Mr. Otteson said that type of information is best to get ahead of time so the issues can be worked into the design. Councilmember Bolkcom noted this project is not the biggest project the City has done. This project is more confined to one area and should run smoothly. Mr. Kosluchar said he is confident staff has the mechanisms in place to monitor this project and keep things in control. Councilmember Bolkcom noted the specs for the projects have changed, so there should be no issues with sod, etc. Mr. Kosluchar answered yes. Councilmember Bolkcom said the current assessment is $1,950. She asked what the ne�t step would be if the bids came in a lot higher. Mr. Kosluchar said staff will review the bids and bring them to Council. If the bids are higher than the estimated amount, a lower cost may be negotiated or the project would be pared down. Councilmember Bolkcom asked how residents would know what is happening ne�t. Mr. Kosluchar said the ne�t notification would be the award of the contractor. Residents can check the website. Staff is hoping to recommend a contractor at the March 12 Council meeting. Councilmember Bolkcom asked how the City came up with the 6% interest rate. She also mentioned that residents can get a loan on their own if they wish. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 13, 2012 PAGE 8 Darin Nelson, Finance Director, said the City uses the current prime rate plus 2%. The current prime rate is 3.25%. Staff used 6% as an estimate. The rate could be lower depending on what the prime rate is at the time of the loan. Russ Hendrick, 6736 Jefferson Street, asked if the existing curbing would be replaced. Mr. Kosluchar said it may not be a full replacement. The contractor would check the grades and offset where curb is draining poorly and replace sections as necessary. If residents know of an area that needs replacing, please let staff know. Mr. Hendrick noticed that a number of lots in his area the sewer systems are marked and others are not. He asked why. Mr. Kosluchar was not sure if something was going on in his area or not. A survey was sent to residents and 20 people responded wanting their sewer televised. Residents can have their sewer lines replaced at a lower cost during this project because the pavement would not need to be replaced. Additionally some televising was done of the main sewer lines and 271etters were sent out last week to those who had root problems, etc. If people want to fix these problems, they should contact staff. Councilmember Barnette asked if there was a fee to residents who have their sewer televised. Mr. Kosluchar said this service is free of charge. Mr. Hendrick said he thought everyone who connects to main sewer line was viewed. Mr. Kosluchar answered yes, all of them were viewed and 27 of them had fairly significant root or offset problems. Letters were sent to those properties. Kate Kemper, Michael Servetus Unitarian Church, thanked Council for a response to her letter. Mr. Otteson will meet with her to discuss what can be done to improve the drainage in her area. Connie Bundy, 435 Rice Creek Terrace, asked where the e�tra proceeds from the 2% above prime rate went. Mr. Nelson answered the prime rate is the interest rate and the 2% added on will cover the fee for the City providing the loan service. Mayor Lund added it is the same process a bank loan uses. Ms. Bundy asked why this could not be paid from property taxes. Mayor Lund said that property taxes do not pay for street improvements. Property taxes pay for fire, police, city administration, public works, recreation department, etc. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 13, 2012 PAGE 9 William Burns, City Manager, added that 20 to 30% of property taxes go to the City. The rest are for schools, the county and other tax jurisdictions. Councilmember Bolkcom said that information can be found on your tax statement. Mayor Lund agreed that everyone has seen an increase in property taxes and property values continue going down. The State has budget shortfalls which has impacted property taxes, putting more burdens on home owners. Ms. Bundy asked if they did not want their street repaired, how they could get out of project. Mayor Lund said if the majority of people on the street do not want the repairs done, the City can review the need for the repair. Staff does annual reviews of our streets and chooses to repair the worst streets in Fridley. Ms. Bundy asked what percent is needed to vote down the project. Mayor Lund said Ms. Bundy could create a petition but the timing to implement the petition is very short. Typically a petition would need to be presented tonight. Ms. Bundy should contact her Ward Councilmember and himsel£ There are no specifics for a petition. Councilmember Barnette recalled a past project that was done in the Hillcrest area, and one resident carried a petition. Fifty percent said they did not need to do the project. Once staff explained the street would not be done for another 10 to 12 years, the majority changed their minds. In the end, they did not want to delay the construction of their street. Councilmember Bolkcom said the Public Works Department spends a lot of time repairing the street. If it is not done now, it would need more work later and then the homeowner's assessment would be higher. Mayor Lund suggested Ms. Bundy contact the City Manager, and he will direct those questions to the Public Works Director. The streets are analyzed based on repair and problems and the worst areas are selected first. If frequent patches are done for potholes and there are water breaks in the area, etc., then it is time for repair. Councilmember Saefke added if the project is delayed, the price of oil is going up which means that the project will never be cheaper unless there is an excess of oil available in the market. Other costs associated with these types of repairs will also increase. The $1,950 assessment may seem out of place and unreasonable today, but the longer we wait, the higher the price. The City portions the cost of street reconstruction to the homeowner and this policy seems to be fair. We offer many methods of payment. Ms. Bundy asked what the new street would add to the value of her house. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 13, 2012 PAGE 10 Councilmember Saefke said the property value will increase. If you lived on a gravel road and tried to sell the house and the neighbor behind lived on paved street; the paved street would sell first. If the project is delayed, the street will continue to deteriorate. Don Holum, 675 Monroe Street, said he is in favor of this project as it is needed. The construction will take place from mid-May to mid-August. He said he was concerned with the schools as they do not get out until June 7 or 8, and there will be summer school. Mr. Kosluchar said they could work the construction around those schedules. He did not look into summer school but would call the school and discuss that issue with them. Mr. Holum asked what direction the construction would start--from University and work east. Mr. Kosluchar said the contractor would select the most efficient method to sequence the project. All streets would not be worked on at once, they limit the area to 5,000 feet open at one time. Mr. Holum said he just did not want contractors to bring in heavy equipment on the new roads. Mr. Kosluchar agreed that they too do not want to do that. They will more than likely work from the inside out. Mr. Holum asked about sprinkling systems, and whether they would be replaced if they were damaged. Mr. Kosluchar said the sod would be replaced and the sprinklers would depend on the irrigation system. Typically this type of construction would not impact the irrigation system. If something were damaged, it would be up to the contractor to repair it. If you have a sprinkler system, flag it or mark it and let the contractor know it is there. They would like to avoid it if possible. Mr. Holum asked if utilities were assessed to the homeowner. Mr. Kosluchar said there will be no charges for utilities. Mr. Holum asked if schools, parks and churches were assessed. Mr. Kosluchar answered private schools and churches yes; public schools no. Mr. Holum asked if the manhole covers could be evened out. Mayor Lund said a ring could be placed on it so the manhole cover is on a ring to bring it to the surface. Mr. Holum asked if people could contact Public Works if a manhole cover is low. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 13, 2012 PAGE 11 Mr. Kosluchar answered yes but not all manholes are the City's responsibility. There are other types of manholes like telephone for example. Mr. Holum said he is looking for quality work for the money they are being assessed. Residents want the best work for their money and it is not always the best to go with the lowest bid. Mayor Lund said if residents are unhappy with any work they should contact the Public Works Department immediately. Marilyn Sullivan, 522 — 66th Avenue NE, asked about rain gardens and if any information was available. Mr. Kosluchar said if anyone is interested in rain gardens, the City will do a portion of the work The City does the curb, but the property owner is responsible for the plantings and maintaining plantings. Councilmember Bolkcom asked if funds were available from the watershed district. Mr. Kosluchar said it depends on permit requirements if they can participate or not. Either way, the City will benefit from the water quality of the rain gardens. Ms. Sullivan asked if the area by Seventh Street and Mississippi, where the road dips down, would drain better after this project is complete. Mr. Otteson said he has received comments about drainage problems throughout that area. He will look at it tomorrow. Ms. Sullivan asked if there were three- or five-year payment plans or just the ten-year plan. Mr. Kosluchar said the loan can be paid off early with no penalties. Mr. Nelson added if it is paid off early residents, would only pay the interest accrued up to that date. Ms. Sullivan asked if the boulevard would be disturbed if the curb is not replaced. Mr. Kosluchar said sometimes there is utility work, including work from the gas company. Sometimes the work is done before the road construction is started. If there is a water main scheduled to be replaced, there would be disturbance in the boulevard also. Ms. Sullivan asked if one or two things that will be done differently when staff calls for bids so we experience an excellent project. Mr. Kosluchar said there are a few new tolerance issues with the pavement that were not included in prior projects. Staff will also have more direct contact with the contractor on this proj ect. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 13, 2012 PAGE 12 Councilmember Saefke added that this project is smaller so staff inspection will not be as stretched out for this project. This will make it easier to keep an eye on the project because it is concentrated in a single area. Councilmember Bolkcom said the 2010 project had a lot of drainage issues too. This contract is tighter and the specs are more detailed. Dave Linton, 6521 Clover Place, asked if the mailboxes would be removed and, if they were, if community mailboxes could be installed. Mr. Kosluchar said that typically mailboxes are not removed; only in larger reconstruction projects. Tracy Headings, 38- 67th Avenue, asked about cost overruns or surplus and how that would affect the assessment. Mayor Lund said that is unlikely to happen. Councilmember Bolkcom said if there are any costs beyond the project, it would have to come back to Council for a change order. Dr. Burns said the City has never had a project come in over the estimate. Ms. Bundy asked if she opted to pay the assessment over 10 years and she sold her home, who would be responsible to pay the loan. Mayor Lund said that would be taken care of at the time of closing. Councilmember Bolkcom added it could be negotiated between the buyer and seller. Mr. Kosluchar said the loan would show up in a title search. Darcy Erickson, City Attorney, said the loan would show up at the time of closing and the title would show a pending assessment. MOTION by Councilmember Barnette to close the public hearing. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING CLOSED AT 9:05 P.M. 7. Consider Issuing an On-Sale 3.2% Malt Liquor and Wine License to Bombay Palace, Inc., Located at 765 — 53rd Avenue N.E. (Ward 1) MOTION by Councilmember Saefke to waive the reading of the public hearing notice and open the public hearing. Seconded by Councilmember Bolkcom. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 13, 2012 PAGE 13 UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING OPENED AT 9:05 P.M. Deb Skogen, City Clerk, said the building located at 765 - 53rd Avenue NE was previously licensed as Himalayan Restaurant II. There are no taxes, utilities or special assessments owing on the property. The building is being leased to Bombay Palace by Cheema-Shrestha Company LLC. Ms. Skogen said the public hearing notice was published in the Fridley Sun Focus on February 2, 2012. All required license fees have been paid. A wine license requires a minimum seating capacity of 50 persons. The restaurant facility serves up to 96 persons. Ms. Skogen said the officers of the corporation are Joginder Cheema, Naveen Shrestha and Manjit Singh. The Police Department completed a background investigation and found no criminal histories or character issues to deny the application. Staff recommends holding the public hearing. Councilmember Saefke asked if the petitioner was aware of the wine to food ratio. Joginder Cheema, Bombay Palace, answered yes. He was the owner of the Himalayan Restaurant but there were not enough clients for that type of food so now they would like to open an Indian Restaurant. People are more familiar with Indian food. 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 AND THE PUBLIC HEARING CLOSED AT 9:10 P.M. OLD BUSINESS: 8. Resolution Approving a Subdivision, Lot Split, LS #12-01, to Create Two Buildable Lots, Generally Located at 551 Hugo Street N.E. (Ward 3) (Tabled February 6, 2012) MOTION by Councilmember Bolkcom to remove this item from the table. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Scott Hickok, Community Development Director, said the petitioner is seeking a lot split to subdivide the lot at 551 Hugo Street to create two single family lots for the HRA's Housing Replacement Program (HRP). Subdividing this large lot will allow for the construction of two new single family homes. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 13, 2012 PAGE 14 Mr. Hickok said both of the proposed lots, Parcel A and Parcel B, will be 75 feet in width and 110 feet deep, which is 8,250 square feet in size. As a result, both lots will be substandard in meeting the lot size requirement for a modern R-1, Single Family lot by 750 square feet. The subdivision ordinance states that if the Planning Commission or City Council find any regulations or requirements of the Code that cannot be met by a particular subdivision, they may grant approval of a subdivision with minor variances provided the variation is not contrary to the intent and purpose of the regulation. Mr. Hickok said the proposed lot split meets the intention of the Riverview Terrace plat and will be consistent with the size of the majority of the lots in this area. The creation of two lots versus one large lot will also allow the HRA to meet the goals of the Housing Replacement Program by providing additional housing opportunities and reinvestment in this neighborhood. Mr. Hickok said in 2000 the O-6 Overlay District that was approved allows small lots to be considered conforming which then allows property owners to expand and re-invest in their homes. The O-6 Overlay District required substandard lots to be recorded prior to December 29, 1955; as a result, the proposed subdivision is not covered under the O-6 Overlay. Approving the proposed subdivision would be consistent with the neighborhood, which is not contrary to the intent and purpose of the code regulation. Mr. Hickok said the Planning Commission held a public hearing for LS #12-01 on January 18, 2012. They unanimously recommended approval of the request. City Staff recommends concurrence with the Planning Commission. If the lot split is approved, the following stipulations should be attached. 1. All necessary permits shall be obtained prior to construction. 2. Grading and drainage plan to be approved by City's engineering staff prior to the issuance of any building permits, in order to minimize impacts to the surrounding properties. 3. Property owner at time of building permit application shall provide proof that any existing wells or individual sewage treatment systems located on the site are properly capped or removed. 4. Property owner at time of building permit application for the construction of each single family home shall pay $750.00 required park dedication fee. 5. Property owner at time of building permit application for the construction of each single family home shall pay all water and sewer connection fees. MOTION by Councilmember Bolkcom to adopt Resolution No. 2012-12. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 13, 2012 PAGE 15 NEW BUSINESS: 9. Resolution Ordering 2012 Street Rehabilitation Project No. ST 2012-01, Authorizing Preparation of Final Plans and Specifications, Authorizing the Advertisement for Bids, and Authorizing Preparation of Preliminary Proposed Assessment Roll for Pending Assessment Reporting Purposes MOTION by Councilmember Saefke to adopt Resolution No. 2012-13. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 10. Resolution Ordering Preparation of a Preliminary Report and Preliminary Plans and Specifications for the Oak Glen Creek Improvement Project No. 380 Jim Kosluchar, Public Works Director, said in recent years, the banks of Oak Glen Creek have been progressively eroding due to a combination of factors, including land use, vegetative cover, and stabilizing cover during peak discharge flow events. This segment of Oak Glen Creek is located on private property and easements are not established that enable City maintenance. The City has been working with the Anoka Conservation District (ACD) to develop a plan for mitigation of this erosion. Public meetings have been held with adjacent properties during the development of this plan. Mr. Kosluchar said on July 20, 2010, a public meeting was held and a design proposal was discussed with the residents. The City indicated that the participation of adjacent property owners was vital to any project going forward. During discussion, the residents generally indicated favor for a project initiated by the City and the ACD that would seek out additional outside sources of funding to reduce the cost to both residents and the City. Mr. Kosluchar said on September 12, 2011, the City Council passed a resolution that authorized the City to work with ACD to apply for a Clean Water Fund Competitive Grant from the State of Minnesota. The application was successful, and the project was awarded $339,700, which is $13,700 more than we initially proposed with no increase in the $85,000 local match. In addition, we applied for and received an in-kind services grant from the Minnesota & Iowa Conservation Corps. We will have 30 days of crew time with their personnel to work on this proj ect. Mr. Kosluchar said this project includes construction of check dams, and stabilization with riprap and live stakes to reduce down-cutting of the stream. The project also includes removal of a large number of trees to remove canopy that inhibits growth of plants that root and would naturally stabilize the stream's banks. An alternative to pipe the creek was discussed, but found to be cost prohibitive and unlikely to receive the approval of permitting authorities. Mr. Kosluchar said the ne�t step to move the project ahead under the special assessment process is preparation of a feasibility report. This report will address the scope of the work for FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 13, 2012 PAGE 16 the project. Preparation of the feasibility report will allow staff to refine construction costs and determine whether the work needed can take place within the CIP budget. The feasibility report will provide a recommendation to the City Council on construction permitting, funding, and the timing of the improvements. The resolution orders the preparation of a feasibility report and preliminary plans for the project. Staff recommends Council's approval. Councilmember Bolkcom asked when the ne�t neighborhood meeting would take place. Mr. Kosluchar answered in March. Neighbors will receive a two-week notice. Councilmember Bolkcom said residents would then have an idea as to what they would be assessed. Mr. Kosluchar answered yes. The neighborhood has supported projects such as this and we did get some good funding from outside sources. MOTION by Councilmember Bolkcom to adopt Resolution No. 2012-14. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 11. Resolution Setting a Public Hearing for April 9, 2012, to Create Tax Increment Financing District #20. MOTION by Councilmember Saefke to adopt Resolution No. 2012-15. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 12. Resolution Approving Amendment to Existing Residential Curbside Recycling Service Contract with Allied Waste Services. Julie Jones, Planning Manager, said the City's existing residential recycling contract with Allied Waste Services is set to expire March 31, 2012. Due to the logistics involved in public education and cart delivery for single sort recycling services under the proposed new recycling contract, City staff and Allied have agreed on a May 7 start date for the new service. In order to legally protect both parties, a contract e�ension is necessary. Ms. Jones noted the contractor's full company name was not listed in the contract amendment. The amendment copies for signature have been corrected with the full company name as it appears in the first paragraph of the new contract--Allied Waste Services of North America, LLC, a Delaware limited liability company, d/b/a Allied Waste Services of the Twin Cities- Blaine, herein called the "Contractor." FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 13, 2012 PAGE 17 MOTION by Councilmember Bolkcom to adopt Resolution No. 2012-16. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION by Councilmember Bolkcom to change the name of the contractor in the resolution and the contract amendment from Allied Waste to Allied Waste Services of North America, LLC, a Delaware limited liability company, d/b/a Allied Waste Services of the Twin Cities- Blaine, herein called the "Contractor." Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 13. Resolution Approving Residential Curbside Recycling Service Contract with Allied Waste Services. Julie Jones, Planning Manager, said using the language from the recent request for proposal and the existing contract, a new recycling service contract has been worked out between the parties. This is a 7-year agreement with annual price adjustments. It will include single-sort recycling collected every other week The contractor will provide and maintain the wheeled carts. The recycling includes additional materials of cartons and 1-7 plastics. The contractor completes one mailing per year and will negotiate service details. There will be alley collections as well as collection in manufactured home parks. Ms. Jones noted the motion in the resolution should note the correction on the contractor's name in Attachment A. A separate motion is needed on the resolution for the new contract on pages 47-63, removing the material listed on page 48, which is there in error. The information on that page does not pertain to this item and should be deleted. Councilmember Bolkcom noted that on page 49 mobile home park should be changed to manufactured home park Also on page 51 it says the new service will start on May 7; she asked if the regular recycle would be in effect on Apri130. Ms. Jones answered yes; the existing service will go through the first few days of May. Councilmember Bolkcom asked if something has been set up to turn in the old recycle bins if people did not want them. Ms. Jones answered no; this has not yet been set up. The tentative delivery date for the new carts is April 23. People can check the website for information on how to get rid of their old recycle bins. Councilmember Bolkcom understood that if someone's recycle cart breaks, a replacement would be delivered within two weeks. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 13, 2012 PAGE 18 Ms. Jones replied yes. Councilmember Bolkcom asked if they did not pick up the recycling because of bad weather, when it would be picked up. Ms. Jones said this has never happened but if it did; they would come the ne�t day. Councilmember Bolkcom asked about the alley pick up area that is not worked out yet and if it had to come back as an amendment. Ms. Jones said the problem area is between Arthur and Anoka Street where there are very low wires which makes it difficult for a truck to get in there. Staff will work with those six people. They will service them but will need to work out how to pick up the recyclables. Darcy Erickson, City Attorney, said the resolution could be approved tonight and an amendment could be made to the map to reflect the collection. Councilmember Bolkcom asked how much would be charged if the contractor brought the recycle cart from the home to the street. Ms. Jones said that 20 are allowed for free and in the past, the City has never gone beyond that number. Councilmember Saefke said many residents are afraid of wheeled carts because if they have a steep driveway, they are afraid to slip and fall. Scott Hickok, Community Development Director, noted there are provisions in the contract to take care of that issue. Residents who need help are encouraged to ask friends and family for help as well. Councilmember Saefke said the contract says they will take up to 20 carts from the home to the street; 14 have already called to ask for this service. He asked what happens if we exceed 20 and what impact it would have on this contract. Rich Hurstein, Allied Waste, said there is no medical test for residents to take to prove they need this service. If they call and need this service, we will do it for them. Mayor Lund asked what the charge would be if we exceed the 20. Mr. Hurstein said that if it is a reasonable number they will do it. In the past they have found that those with limited mobility have told us pushing a wheeled cart is an easier way to get the cart down to the street. Councilmember Bolkcom suggested striking the part that says "up to 20." She asked how residents let someone know if they need help with the cart. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 13, 2012 PAGE 19 Mr. Hurstein said they do not want to encourage this. They cannot ask the resident if they are unable to bring it to the curb. He said if there were 24 or 50 there probably would not be an additional charge, but they don't want to do 100 carts for example. William Burns, City Manager, asked if the number could be changed to 50. Mr. Hurstein did not want to negotiate this number as he does not think it will be an issue. If he had to pick a number, 30 seemed reasonable. Councilmember Bolkcom said in the contract it reads that if a resident's recycling is not picked up, they should call on the same day before 5:00 p.m. for a pick up. Many residents don't get home before 5:00 p.m. so this could be an issue. Ms. Jones said that this language has been in the contract for 13 years. Residents do call and if they call before noon the contractor can pick up the same day. If it is after noon, they would pick up the following day. This has not been an issue in the past and nothing has changed in the language. Councilmember Bolkcom asked if the City has had a delay in the past. Ms. Jones answered yes; we have had breakdowns and they pick up the next day. Councilmember Bolkcom asked who the residents should call if they have a problem; do they call the City or the contractor. Ms. Jones answered they could call either. Councilmember Bolkcom asked how staff would know if there is a problem if they call the contractor. Ms. Jones said contacting the contractor would be more efficient. Councilmember Bolkcom said we would not know the issues if they are calling the contractor. Councilmember Varichak noted the contractor has to provide monthly reports to the City and list the calls they get so the City would have that information. Councilmember Bolkcom asked if the penalty related to 4.1 could be authorized if they do not call the city. Attorney Erickson said the contract cannot require residents to call the City but staff could put on the website to have residents call the City if they are having recycling problems. Ms. Jones noted that Allied Waste does keep meticulous records when people call. Councilmember Bolkcom asked if special events included participating in drop-off events. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 13, 2012 PAGE 20 Ms. Jones said that is related to publicity and education, not about service. Councilmember Bolkcom asked what letter "G" was referring to on page 55. Ms. Jones answered that they had talked about safety camp and bringing in a truck and talking to the kids about staying away from trucks when playing in the street. Education relates to what is offered during `49er Days to provide education about recycling. MOTION by Councilmember Varichak to adopt Resolution No. 2012-17. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY MOTION by Councilmember Bolkcom to change Allied Waste Services to Allied Waste to Allied Waste Services of North America, LLC, a Delaware limited liability company, d/b/a Allied Waste Services of the Twin Cities-Blaine, herein called the "Contractor". Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY MOTION by Councilmember Bolkcom to change Mobile Home Park to Manufactured Home Park on page 49 and on page 52 change 3.12 to "The City will work with the contractor to increase the number of walk up services and financial compensation. Also staff will work up a map for alley pickup areas that were of concern. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY 14. Resolution Approving and Authorizing Execution of Liquor Store Lease Between the City of Fridley and ZCOF TL Fridley, LLC Darin Nelson, Finance Director, said the Fridley Liquor Store Lease ZCOF TL Fridley, LLC also known as Tri-Land Development is in the process of finalizing redevelopment plans for the shopping center that currently houses both the City's liquor store and Cub Foods. The proposed redevelopment will change the layout, size and location of the existing liquor store. Due to these significant changes it is prudent to create a new lease rather than amend the existing lease. Mr. Nelson said that the proposed redevelopment moves the north wall of the existing premises to the south by approximately 40 feet. As a result, a majority of the existing liquor store footprint will be demolished. Our new footprint will resemble a more traditional strip mall size and shape. Our new space will occupy approximately 10,540 square feet; whereas our existing store occupies over 13,300. A reduced store size will allow for more efficient operations, including a more controlled flow of customers through one entrance rather than the two current entrances. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 13, 2012 PAGE 21 Mr. Nelson noted the terms of the lease are similar to our existing lease. We will have a guaranteed lease through October 31, 2018 with options for two additional five-year terms that include fixed rent adjustments. Start Date thru 10/31/2013 $109,980.75/annually 11/1/2013 thru 10/31/2018 $126,777.81/annually Option Terms 11/1/2018 thru 10/31/2023 $145,841.14/annually 11/1/2023 thru 10/31/2028 $167,703.98/annually Mr. Nelson said the liquor store has experienced a decrease in sales since Gander Mountain vacated the space ne�t to the liquor store a number of years ago. The liquor store, as with any liquor store, is a business that benefits from high traffic counts, which is normally associated with occupancy levels at or near capacity. We are hopeful this redevelopment will bring in new businesses, and in turn more traffic and people to this area. Mr. Nelson said our ne�t rent increase is scheduled to occur in November 2013. We were able to negotiate a rent rebate into the lease, which will help insulate ourselves against this rent increase if the shopping center does not achieve 75% occupancy. The rent rebate is in effect for the five-year term beginning in 2013. It allows for a$1,000 monthly rebate if the shopping center is less than 75% occupied. Mr. Nelson said the new lease also calls for a$50,000 renovation allowance. This allowance will be used for signage, moving coolers, furnishing, painting, etc. We will be reusing some existing furnishings such as shelving, but we do expect to purchase new checkout counters, etc. Common Area Maintenance (CAM) services will also be changing in this lease. Cub Foods will no longer be performing the maintenance. Tri-Land Development will now be performing this function. We are optimistic that this will be a positive change, in that maintenance will be done more timely and to a higher standard. As with the current lease, the liquor store is only responsible for its pro-rated share of the shopping center in regards to CAM charges. Mr. Nelson said this lease is contingent upon Cub Foods signing a new lease. Without Cub Foods in this shopping center, our liquor store operation at its current location is likely not sustainable. As of today, Cub Foods has not signed a new lease. I have been told by the developer that he is anticipating Cub Foods signing a new lease within a couple weeks. Mr. Nelson said in order to not delay the construction of this project, we are recommending Council approve the lease agreement with the stipulation that the signed lease not be delivered to the Landlord until evidence of a new Cub Foods lease is received. The City Attorney, and her associate, Ken Rohlf have each reviewed the lease and are comfortable with the language. A number of their suggestions have been negotiated into this lease, which substantially strengthened the City's position. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 13, 2012 PAGE 22 Mr. Nelson said staff recommends Council pass the attached resolution approving the liquor store lease between the City and ZCOF TL Fridley, LLC, with the stipulation that the lease not be delivered to the Landlord until evidence of a new Cub Foods lease is received. Councilmember Barnette asked if McDonalds would remain with Cub. Mr. Nelson answered not on that side of the development; Cub is the main anchor for the liquor store. Councilmember Bolkcom asked if there was going to be a new Cub Foods lease without a new Cub Foods store. She asked if Cub Foods could exist there and not change. Mr. Nelson said if they do not sign a new lease and redevelop a new store, we would fall back to our original lease. Councilmember Bolkcom asked why we wouldn't wait. Mr. Nelson said we don't want the City to hold up the development of Cub Foods. Councilmember Bolkcom asked if the new lease should say something related to the remodel. Mr. Nelson said that Cub Foods would not sign a short-term lease. Darcy Erickson, City Attorney, said that Section 2.8 requires Cub to enter a new lease to contemplate new premises. MOTION by Councilmember Bolkcom to move into record the lease, Page 1 through Exhibit H. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY Councilmember Bolkcom asked if the area would increase or decrease or if we knew what the numbers would be. Mr. Nelson said the building would decrease in size but he did not know if the ratio would change our monthly charges. Triland will be doing maintenance under this new agreement. MOTION by Councilmember Bolkcom to move into record a three-page document with additions I-L and a C2 plus a change of address on the first page on lease premises. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 13, 2012 PAGE 23 MOTION by Councilmember Bolkcom to adopt Resolution No. 2012-18. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION by Councilmember Bolkcom to amend the address on this resolution to 260 — 57th Avenue. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 15. Informal Status Report Scott Hickok, Community Development Director, announced the Home and Garden Show would be held at the Schwan Center in Blaine on February 25 from 9 a.m. to 2 p.m. Councilmember Bolkcom thanked those who attended caucuses. Also please come to Kids Do Art at Banfill-Locke Center with a lot of kids' art on display. This event will be held through March 3 froml0 a.m. to 4 p.m. and is free. ADJOURN: MOTION by Councilmember Barnette to adjourn. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 10:30 P.M. Respectfully Submitted, Krista Monsrud Scott J. Lund Recording Secretary Mayor