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CCM 10/08/2012 CITY COUNCIL MEETING CITY OF FRIDLEY OCTOBER 8, 2012 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 Bolkcom Councilmember Varichak MEMBERS ABSENT: Councilmember Saefke OTHERS PRESENT: William Burns, City Manager Darcy Erickson, City Attorney Jim Kosluchar, Public Works Director Scott Hickok Community Development Director Darin Nelson, Finance Director/Treasurer PROCLAMATIONS: Student Foreign Exchange Week: October 8-14, 2012 Anna Juurinen - Finland Gergo Kruppa – Hungary Ingvild Sanaker – Norway Seishu Sata - Japan APPROVAL OF PROPOSED CONSENT AGENDA: APPROVAL OF MINUTES: City Council Meeting of September 24, 2012 Councilmember Bolkcom noted page 9, third paragraph should read “We need to work with Met Council…” APPROVED AS AMENDED. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 8, 2012 PAGE 2 OLD BUSINESS: 1.Second Reading of an Ordinance to Amend the City Code of the City of Fridley, Minnesota, by Making a Change in Zoning Districts (Rezoning Request, ZOA #12-01, by MDW Equity, LLC, Generally Located at 6101 University Avenue N.E) (Ward 1). William Burns, City Manager, stated that the owners, MDW Equity, LLC, have asked that the property be rezoned from C-3 to C-2. Since the current lot size and setback regulations in the C- 3 section of our code prevent the construction of a new building on this lot, and since C-2 requirements do allow the construction of a new building in this location, staff is recommending Council’s approval of the second and final reading of this ordinance. WAIVED THE READING OF THE ORDINANCE AND ADOPTED ORDINANCE NO. 1297 ON SECOND READING AND ORDERED PUBLICATION. NEW BUSINESS: 2.Receive the Minutes of the Planning Commission Meeting of September 19, 2012. RECEIVED. 3.Resolution Confirming the Statutory Level of Tort Limits. William Burns, City Manager, stated each year the League of Minnesota Cities Insurance Trust (LMCIT) asks that we determine whether or not we want to waive the statutory tort liability limits to the extent of coverage. If we do not waive these tort limits, claimants are limited to $500,000 per claim and $1.5 million for all claimants per single occurrence. Otherwise each claimant is able to recover up to $1.5 million per occurrence. All claimants are also limited to $1.5 million per single occurrence. Staff recommends that we not waive the statutory tort limits. ADOPTED RESOLUTION NO. 2012-69. 4.Resolution Authorizing Signing of Employment Agreement between Certain Employees Represented by Local No. 1986. William Burns, City Manager, stated the contract covers the years 2012 and 2013. It provides for a 2% pay rate increase for both years. Other terms include elimination of the annual leave sellback provision from the contract, an increase in the minimum callback compensation from one hour to two hours, a one-time tuition reimbursement at the conclusion of a course, and insurance coverage on “me too” basis with non-union employees. Staff recommends Council’s approval. ADOPTED RESOLUTION NO. 2012-70. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 8, 2012 PAGE 3 5.Resolution Designating Time and Number of Council Meetings for 2013. William Burns, City Manager, stated staff recommends Council’s approval of the 2013 calendar. ADOPTED RESOLUTION NO. 2012-71. 6.Motion to Receive the Fiscal Year 2013 Budget for Twin Cities Gateway. William Burns, City Manager, stated the budget provides for $750,000 in expenditures and compares with $709,200 for 2012. The expenditures are funded from a 2% lodging tax that is assessed against hotel/motel costs in the nine member cities. Eighty percent of the budget is used for marketing and promotion of the nine member cities. The remainder is used for administrative expenses. The budget was approved by the Twin Cities Gateway Board of Directors on September 25, 2012. Staff recommends Council’s receive the 2013 budget. RECEIVED THE 2013 BUDGET FOR TWIN CITIES GATEWAY. 7.Commission Appointment – Appeals Commission. William Burns, City Manager, stated that staff recommends the appointment of Cheristi M. Cognetta Rieke to fill a vacated term that expires on April 1, 2014. APPROVED THE APPOINTMENT OF CHERISTI M. COGNETTA RIEKE TO THE APPEALS COMMISSION. 8.Claims (156790 – 156956). APPROVED. 9.Licenses. APPROVED THE LICENSES AS SUBMITTED AND AS ON FILE. 10.Estimates. CORRECTED ESTIMATE The following estimate was listed with the September 24, 2012, Estimates: Penn Contracting, Inc. 13025 Central Avenue Suite 200 Blaine, MN 55434 2012 Miscellaneous Concrete Repair Project No. 417 Estimate No. 3 ................................................................. $19,533.28 FRIDLEY CITY COUNCIL MEETING OF OCTOBER 8, 2012 PAGE 4 It should be corrected to read: Ron Kassa Construction 6005 East 250th Street Elko, MN 55020-9447 2012 Miscellaneous Concrete Repair Project No. 417 Estimate No. 3 ................................................................. $12,255.00 ESTIMATE Midwest Asphalt Corp. 5929 Baker Road Suite 420 Hopkins, MN 55345 2012 Street Rehabilitation Project No. ST2012-01 Estimate No. 4 .............................................................. $382,845.82 APPROVED. APPROVAL OF CONSENT AGENDA: 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 OPEN FORUM VISITORS: Jim Henrichs , 7355 Hayes Street, has a problem with his neighbor and compliance issues; the property is an eyesore to the neighborhood. He is requesting Mr. Hickok and Council to visit the home as it is such a mess. Mayor Lund asked if this was the same home he has viewed in the past. Mr. Henrichs answered yes. He is asking for the City’s help to take care of this problem. Lisa Gertner , 1323 Fireside Drive, expressed an ongoing problem with Northern Plumbing at 7401 Old Central Avenue. The people that work there speed through the neighborhood on a regular basis and do not stop at the stop sign. She is concerned for the safety of the children in the neighborhood. She looked up the zoning and it is zoned for local business, not a heavy or light industrial. She has spoken to Councilmember Varichak and Mayor Lund in the past about her concerns. This area should be zoned residential. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 8, 2012 PAGE 5 Melissa Lueth, 1367 Fireside Drive, said she is at the bus stop daily and has seen speeding. People are not stopping at the stop sign. They also have not stopped for the bus when the lights were flashing. She has also heard people using profanity. The secretary at the business had told them they cannot be on the property. This not private property and is a designated school bus stop. The School District refuses to move the bus stop. This is not a safe place for kids. Someone is going to get hurt. Ms. Gertner said she has spoken to the Police Department and is not getting anywhere. They are frustrated. She has a list of people who have signed a petition that are disgusted with their behavior. The police officer said that nothing can be done until someone gets hurt. Mayor Lund asked for the petition, staff will make copies and mail it back to Ms. Gertner. Ms. Lueth said she just moved into the neighborhood and likes the area and community; but dislikes what is happening with this business, as it is a danger to the neighborhood. Mayor Lund said that they will pass their concerns on to code enforcement. Councilmember Barnette asked if they have contacted the bus company. Ms. Gertner answered yes. Mary Ramirez, 1303 Fireside Drive, said the bus company has been informed as well as the school district. Councilmember Bolkcom asked if they checked with the School Board or filed a complaint. Ms. Lueth said the bus company is Lorenz and they will not move the bus stop. th Joe Rickenbach , 700 67 Avenue, asked about the street project and if a sidewalk would be installed next year along his property. He would like input on the project. JimKosluchar, Public Works Director, said that is part of the Safe Routes to School Project, but there are no firm drawings yet. All adjacent properties will be contacted when the drawings are completed. Mr. Rickenbach asked if they could have input before the drawings are completed. Mr. Kosluchar said the plans are always subject to change. Councilmember Bolkcom said the homes in the neighborhood will be notified and able to give input at that time. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 8, 2012 PAGE 6 AGENDA: MOTION by Councilmember Bolkcom to approve the agenda as submitted. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. PUBLIC HEARINGS: 11.Consider the Proposed Assessment for Street Improvement Project No. ST. 2012-01. MOTION by Councilmember Bolkcom to open the public hearing. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING OPENED AT 8:08 P.M. Darin Nelson, Finance Director, stated this project assessment pertains to the mill and overlay of City streets as part of the City’s Street Resurfacing Plan. The 2012 Street Improvement Project includes parts of the Rice Creek Terrace neighborhoods. The total number of properties subject to this assessment is 227, with a total assessed cost of $547,551.89. Each single family residential property is proposed to have an assessment of $1,930.94. Assessments were originally estimated at $1,950. The assessment payback period is 10 years, and payments are subject to a 5.25 percent interest rate. Property owners have until the close of business on November 21 to pay all or a portion of the assessment interest free. Mr. Nelson said staff has not received any formal notices contesting the assessment from either residential or commercial property owners. A deferral option for retired or disabled property owners is available for homestead properties. Qualifying factors include:  Owner is at least 65 years old.  Owner is retired by virtue of permanent or total disability, and it would be a hardship to make payment.  Application for deferral must be made within the first 30 days after the final assessment rolls are approved by Council.  Income guidelines are met: Special assessment exceeds 1% of AGI, or household income is below the Very Low Income threshold as defined by CDBG. Residents may contact the Finance Department for more information at 763-572-3520. Staff recommends Council open the public hearing for comment. Councilmember Barnette asked when the statements were sent out. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 8, 2012 PAGE 7 Mr. Nelson said a courtesy letter after the assessment is approved, with the final Council adopted decision, will be sent out within the next week or so. Councilmember Barnette asked if a resident was 65 years or older and deferred payment up to the time the home is sold would interest accumulate over the years. Mr. Nelson answered yes, interest compounds on that and it can add up over time. CouncilmemberBolkcom asked if there was a penalty to pay off the assessment early. Mr. Nelson answered no. The loan can be paid off any time, and homeowners would just pay the interest that had been accrued. th Joyce Johnson, 6831 7 Street NE, said she thought that the interest rate was too high, as the rates have dropped. CouncilmemberVarichak said that homeowners can go and find their own financing. They do not have to finance through the City. Mr. Nelson noted that the City has to fund the project up front and recoup the expense over 10 years. The interest rate has been 3.25% and the City adds 2% on top of that. Home mortgage interest rates are lower now but that is the formula the City uses. Also the City will finance everyone and does not look at anyone’s credit scores. The City needs to cover its costs. Mayor Lund noted that this interest rate is reduced from 6.5% in previous years. Ms. Johnson said the daily interest accrues fast for a few thousand dollars. Mayor Lund stated she may want to look at a home equity line of credit and see what that interest rate is. Ms. Johnson said it is 4% or 3.99%. The interest rate could be a little lower. Mr. Nelson stated he checked with other cities and Columbia Heights was at 6%; Mounds View was at 5.5% so Fridley is in the ballpark. The total dollar amount for interest will be about $450 over the 10-year span. th Pat Blood, 6711 4 Street, noted that the 5.25% interest rate is per year; not per day. MOTION by Councilmember Barnette to close the public hearing. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING CLOSED AT 8:16 P.M. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 8, 2012 PAGE 8 12.Consider the Creation of Tax Increment Financing District No. 21. MOTION by Councilmember Bolkcom to open the public hearing. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING WAS OPENED AT 8:17 P.M. Paul Bolin , Assistant Executive HRA Director, stated in order to create the district, the City Council must first adopt a resolution modifying the redevelopment plan for the City and the tax increment financing plans for the existing TIF districts. The attached resolution reflects the projected increased project costs and the increased bonding authority within the City’s redevelopment area, creates TIF District #21 and adopts the TIF plan relating thereto. Staff has not received comments on the creation of the district from either Anoka County or the Fridley School District. The Authority approved the creation of this TIF District #21 at their regular meeting on October 4, 2012. Mr. Bolin said the District allows HRA to recover its investment in GWNE. The TIF District #21 Assumptions are as follows: Phase I: 4500 square feet of office/commercial with construction commencing in 2013; Phase II: 4500 square feet of office/commercial, 50 units of rental housing and 8 units of single family housing with construction commencing in 2014; Phase III: 50 units of rental housing and 8 units of single family housing with construction commencing in 2015; and Phase IV: 8 units of single family housing with construction commencing in 2016 - $12M of Value upon completion. Staff recommends approval of the resolution. The Housing and Redevelopment Authority adopted a similar resolution on October 4, 2012. Councilmember Bolkcom asked plan starting on page 80 would be followed strictly. If someone wanted to do something different would the City be held to the restrictions in the agreement. Mr. Bolin answered this is the tax financing plan and it does not hold the City to build exactly 4,500 square feet of office/commercial space, etc. What it does is lock in value that those properties create, a total of $8.5m in tax increment revenue that would be generated under this example. The makeup of what happens on that site can be changed, but the most that can be generated is $8.5m. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 8, 2012 PAGE 9 Councilmember Bolkcom asked if a proposal came forward for $10.5m, only $8.5m could be generated. Mr. Bolin answered yes; but if a proposal came forward for $7.0m; only $7.0m could be taken. Councilmember Bolkcom asked for an explanation of the small city costs and administrative costs. Mr. Bolin answered the amount is zero for small city authorized costs and the administration cost is 10% of the tax increment collected. Patrick Blood, 6711 Fourth Street N.E., asked if the gas station on the corner would be included in this plan. Mr. Bolin answered yes. Councilmember Bolkcom noted Item No. 1 on the Consent Agenda was approved to rezone that property to make it more marketable. MOTION by Councilmember Bolkcom to close the Public Hearing. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY, AND THE PUBLIC HEARING WAS CLOSED AT 8:28 P.M. MOTION by Councilmember Bolkcom to move into record a letter received from Kap Sun Adams regarding the street assessment and interest rate. This letter was handed to Councilmember Barnette after the public hearing on Item 11 closed. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. NEW BUSINESS: 13.Resolution Adopting Assessment Role for the 2012 Street Improvement Project No. 2012-01. MOTION by Councilmember Bolkcom to adopt Resolution No. 2012-72. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 8, 2012 PAGE 10 14.Resolution Creating Tax Increment Financing District No. 21. MOTION by Councilmember Varichak to Adopt Resolution No. 2012-73. Seconded by CouncilmemberBolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY 15.Special Use Permit Request, SP #12-05, by Archnet, Inc., on behalf of Furniture Outlets, USA, to Increase the Lot Coverage from 40% to 44% to Expand the Existing Building at 5401 East River Road; and Resolution Approving Special Use Permit, SP #12-05 for Archnet, Inc., on Behalf of Furniture Outlets, USA, Generally Located at 5401 East River Road (Ward 3). Scott Hickok, Community Development Director, stated petitioner is seeking a special use permit to increase the lot coverage requirement from 40% to 44%, to allow for the construction of an addition to the north side of the existing building, which is located at 5401 East River Road. It was originally developed in 1969 as a retail and warehouse building that housed Plywood Minnesota. In the early 1990’s, the business changed to Home Valu, which continued to operate at this location until they closed their doors in 2010. This year, Furniture USA purchased the property. Mr. Hickok stated the proposed project includes demolition of the most northern piece of the existing building and construction of a new 15,002 sq. ft. addition. The addition will be used for additional furniture showroom space. The proposed addition will be constructed in two phases. The first phase is 8,618 sq. ft. and is on the northwest side of the building. The second phase is 6,384 square feet, and is on the northeast side of the building. Mr. Hickok stated the code requires that a special use permit may be granted to increase lot coverage in this zoning district as long as the property meets all other code requirements. 187 parking stalls are required for the site. The site plan shows 187 stalls, with 148 stalls to be constructed and 39 stalls as proof of parking. The petitioner has said it is unlikely there would be a need to have 187 stalls on site, so staff is allowing them to prove those stalls in order to add additional green space. If the additional stalls are warranted at any time, there is room on site to construct them. Mr. Hickok stated that the proposed addition complies with all setback requirements. It should be noted that there is a cold storage addition on the east side of the building that is considered an illegal non-conforming structure. A building permit was never issued for that building addition. The petitioner plans to remove the existing walls of the structure with Phase I, and will either completely remove the structure with Phase II or will go through the variance process to recognize the existing non-conforming setback. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 8, 2012 PAGE 11 Mr. Hickok stated that the Planning Commission unanimously approved SP #12-05 at their September 19, 2012 meeting, with the following five stipulations: 1. Any future expansion of the building will require special use permit review. 2. Any future expansion of the building will require a new parking analysis. 3. The existing illegal non-conforming addition on the east side of the building will either be removed with Phase II or the petitioner will seek a variance to recognize the existing non-conforming setback. If variance is approved, the structure shall be built to meet building code requirements with a 3-hour firewall. 4. An as-built survey shall be submitted to City upon completion of Phase II. 5. Per Section 205 of the Fridley City Code, this Special Use Permit will become null and void one year after the City Council approval date if work has not commenced or if the Petitioner has not petitioned the City Council for an extension. Councilmember Bolkcom asked for clarification that this property is nonconforming, because no building permit was granted and because of the setback issue. Mr. Hickok replied yes; it is nonconforming because of the setbacks and illegal as no building permit was issued by the city. Jim Heinitz, CEO Furniture Mart, said Furniture Mart is a retail furniture company with their headquarters in Sioux Falls, South Dakota. Currently, there are 16 stores in Minnesota, and the Ashley Furniture Store in Fridley is their number one store of the 16 stores in Minnesota. They would like to add another store next to this store in the former Home Value building. The intent is to add 15,000 sq. ft. to make the space similar to other Furniture Mart’s in the Twin Cities area. The last project they built is located in Elk River. The intent is to get started earlier in phases, but now they may not need to do the phases. They were hesitant to start construction before approval was granted. Mr. Heinitz stated this building is in worse shape than they had anticipated. There has been a lot of vandalism on the property and the air conditioner units are gone. They will have to start all over with a new roof on all three buildings. Their intent is to get started and get as much done as they can. It will take 6 to 8 weeks to order the steel so possibly they can start December 1. All the financing is in place for this project. Mr. Heinitz stated the reason they would like to build a Furniture Mart next to the Ashley Furniture store is that is the same format as all other locations. The Ashley store only sells Ashley products and the Furniture Mart will have other vendors. Mayor Lund said he appreciated them investing in Fridley again. He does not like to see that building vacant. He is looking forward to a better positive image in that area. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 8, 2012 PAGE 12 Mr. Heinitz added that the back of the store will be a warehouse and the front is for display of the furniture. Councilmember Bolkcom asked if the nonconforming structure would be removed right away. Mr. Heinitz answered yes, that area is really bad. Councilmember Bolkcom asked if Mr. Heinitz agreed with the stipulations. Mr. Heinitz answered yes. MOTION by Councilmember Bolkcom to approve Special Use Permit Request, SP #12-05, and adopt Resolution No. 2012-74, with the following stipulations: 1.Any future expansion of the building will require special use permit review. 2.Any future expansion of the building will require a new parking analysis. 3.The existing illegal non-conforming addition on the east side of the building will either be removed with Phase II or the petitioner will seek a variance to recognize the existing non-conforming setback. If variance is approved, the structure shall be built to meet building code requirements with a 3-hour firewall. 4.An as-built survey shall be submitted to City upon completion of Phase II. 5.Per Section 205 of the Fridley City Code, this Special Use Permit will become null and void one year after the City Council approval date if work has not commenced or if the Petitioner has not petitioned the City Council for an extension. . Seconded by Councilmember Barnette UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 16.Resolution Authorizing Execution of a Source Water Protection Grant Agreement with the Minnesota Department of Health for Unused Well Sealing in the Cities of Fridley and Spring Lake Park. Jim Kosluchar, Public Works Director, stated in 2008, the City of Fridley submitted its final Wellhead Protection Plan Part 2 to the Minnesota Department of Health (MDH) for approval. This plan was approved on May 1, 2009. The plan is intended to protect groundwater resources the City relies on to supply drinking water to its customers. One of the main objectives in the plan is to seal abandoned wells in the City’s Drinking Water Supply Management Area (DWSMA). Unused, old, abandoned, and improperly maintained wells pose a significant threat FRIDLEY CITY COUNCIL MEETING OF OCTOBER 8, 2012 PAGE 13 to City wells. Such wells can act as a conduit for introduction of contaminants directly into an aquifer. Mr. Kosluchar stated in order to provide incentives to private property owners to seal their abandoned wells, MDH has established a Competitive Grant Program for Source Water Protection, which provides matching funding for well sealing. The Cities of Fridley and Spring Lake Park jointly applied for this funding due to their mutually overlapping DWSMAs, and were successful in securing $20,000 from the MDH program. Under the terms of the grant, private property owners will, on a first come/first served basis, be reimbursed 50% of costs up to $750 for pre-approved work to seal unused wells on their property. Mr. Kosluchar stated owners must use licensed well-sealing contractors, and only contracted costs will be eligible for reimbursement. Reimbursement will be allowed only after receipt of proof that the well was properly sealed and proper paperwork filed. The City of Fridley will be the administering agency, and will manage reporting and fiscal distribution of the grant money between the two cities. Work under this grant agreement must be completed by April, 2014. Mr. Kosluchar stated in order to initiate the work related to the program, the attached grant agreement needs to be approved. If approved by the City Council, this grant agreement will be executed by the Mayor and City Manager upon receipt of written power of attorney from the City of Spring Lake Park, and approved by the City Attorney. This would allow for construction to begin, and perhaps completed this fall. Presuming the necessary documents are provided by the City of Spring Lake Park, we anticipate we will begin taking applications in December 2012. Mr. Kosluchar stated staff requests the City Council move to approve the resolution. Councilmember Barnette asked if staff had any idea how many wells are still on private property. Mr. Kosluchar replied no; well records have not been well kept. The City does have a data base of suspected locations and the total is over 800 potential wells based on when the property was developed and the time the water supply was available to the property. Councilmember Barnette asked how the City could encourage people to cooperate. Mr. Kosluchar answered property owners are not required to seal the well if they maintain the well. They would have to pay an annual maintenance fee and license the well with the Department of Health. Councilmember Barnette figures there are a number of wells throughout the community and people are not using them properly. Councilmember Bolkcom noted that in order to sell property the well would have to be sealed. William Burns, City Manager, said the state standards are called HRLs. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 8, 2012 PAGE 14 Mayor Lund hoped that property owners would step forward knowing there is money to assist them to seal wells on their property. Councilmember Bolkcom asked what the average cost was and what makes the cost more or less than average. Mr. Kosluchar answered the cost to seal a well is $500 on up. Simple wells can be sealed inexpensively. Private wells 180’ deep with a 6” casing would cost more money. Another factor is where the well is located. If a well was under a stairwell, for example, it would be costly to seal. A list of contractors can be provided to property owners. Councilmember Bolkcom asked if property owners could seal a well themselves. Mr. Kosluchar answered no. Property owners must use a licensed well contractor to seal the well in accordance with the Department of Health. Councilmember Bolkcom asked what the survey does. Mr. Kosluchar replied that filling out the survey would let the City know the property owner is interested in funding and a staff person would contact them and provide information. This project is needed to protect the City’s water supply. Councilmember Bolkcom stated if property owners take the survey, the City would know that they have a well. Mr. Kosluchar replied yes; some people do have a well and some think they may have a well but are not sure. Others could have multiple wells on their property. Councilmember Bolkcom noted on page 103 (F) it reads that if the total cost is less than $40,000, the grantee would contribute a minimum of 50% of the total cost of the project. She asked for an explanation of what that meant. Mr. Kosluchar answered there will have to be at least a 50% match; it is a “pay as you go” project. The first people won’t get 100%; it will be 50% as you go for each property up to $750. The Grantee match is provided by the resident. Councilmember Bolkcom asked on the bottom of that page where it gives an email and or successor what that meant and why the same verbiage was not used for Dr. Burns. Mr. Kosluchar answered this is the state’s format and that is the verbiage that was in the contract. Darcy Erickson, City Attorney, added this is a state agreement and the verbiage is fine. They do not change the verbiage and the outcome is the same result. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 8, 2012 PAGE 15 Councilmember Bolkcom asked how they could get people to know about this and fill out the survey. Mr. Kosluchar answered there will be a newsletter article and the information is posted on the website. Staff may do some bill insert flyers. Councilmember Bolkcom said this program is an advantage to the homeowner. The cost will be $500 to $1,000+ to seal the well and if there are 800 some potential wells not sealed, $30,000 is not enough to cover all the wells. Mr. Kosluchar said this is offered on a first come, first served basis. Staff is hoping people take advantage of this. If property owners know they have a well, they should call the city. People may suspect a well and a licensed well contractor can come out to determine if one exists. Councilmember Varichak noted some property owners may have more than one well. She asked if this money is only for one well or if there could be more than one per property. Mr. Kosluchar answered that there will be only one allotment per property. Councilmember Bolkcom added that each property could use up to $750. MOTION by Councilmember Bolkcom to adopt Resolution No. 2012-75. Seconded by . Councilmember Varichak UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 17.Receive and Reject Bids for the Police Garage Roof Repair Project No. 414. Jim Kosluchar, Public Works Director, stated on August 20, 2012, staff presented plans for repairs and the City Council received those plans and authorized a call for bids for the project. An advertisement for bids was published, and bids were opened on September 7, 2012. Four bids were received, and are shown in the bid tabulation. Mr. Kosluchar stated bids were provided on two alternatives. One was to remove the existing concrete and planters, install a new membrane and insulation, and replace the entire area with a new concrete surface. The second alternative included overlay of the existing walk, and installation of a new membrane under the existing planters. Both options would provide a new railing along the south side of the proposed walk. No bids were received below our estimate for the first option ($198,000), and two bids were received below our estimate for the alternative ($115,000). Due to clarifications on the bids received, we were unable to provide a recommendation to the City Council at the September 10, 2012 meeting as originally intended. This precluded work being completed in 2012, which we hoped to achieve. After reviewing pricing for elements included in the apparent low bidders, staff has determined that work will FRIDLEY CITY COUNCIL MEETING OF OCTOBER 8, 2012 PAGE 16 have to be completed in 2013, and with the assistance of City forces, the base bid option can be constructed for approximately $100,000. Mr. Kosluchar stated that staff would like to begin work on our own this fall to try and prevent further damage to the interior of the Police garage. The contract documents grant the authority of the City to reject all bids. Staff recommends rejection of bids. If this motion is approved by the City Council, staff will notify bidders, and begin work to implement the repairs using City forces insofar as possible with the assistance of contracted work as needed. Staff requests the City Council move to receive the bids for the Police Garage Roof Repair Project No. 414, rejecting all bids and returning bonds to all bidders. Councilmember Bolkcom asked what amount was budgeted for this project. Mr. Kosluchar answered that the 2013 budgeted, with the Municipal Center roof, was $450,000. All base bid bidders were $70,000 or higher than what was estimated. Staff can economize on their own project and administer this project ourselves. MOTION by Councilmember Barnette to receive and reject the bids for the Police Garage Roof Repair Project No. 414. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 18.Informal Status Reports: William Burns, City Manager, announced a time change for the October 22 Council meeting. Because of the Presidential debates that night, they would like the regular meeting to begin at 6:00 p.m. Scott Hickok, Community Development Director, reminded residents of the Recycling Day at the Public Works garage on Saturday from 9-1. Bring money if you have appliances or larger electronics. The prices are published on the website or call Kay at 763-572-3594 or Julie 763- 572-3599. He suggested bringing the price list with the form filled out, because it would help the process go quicker and more efficiently. Councilmember Varichak added people should also load accordingly to what it says on the card so you can go through the site quicker. Councilmember Bolkcom stated that prescription drugs will also be collected. Mayor Lund reminded residents that he will be participating in the Lee Carlson Center Raise the Roof fundraiser from 5 p.m. to 7 p.m. at Bob’s Produce. A new goal has been set; $6,000 by Friday. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 8, 2012 PAGE 17 Mayor Lund The Knights of Columbus and Lions Club will be participating on Saturday in the Highway Clean Up. Meet at KC Hall parking lot if you would like to participate. The event is from 9 a.m. to 11 a.m. with lunch after at the American Legion. Councilmember Bolkcom asked for an update regarding the lights out on Mississippi. Mr. Kosluchar answered that two fixtures are down or out. The fixtures have been ordered and will take 8 weeks to arrive. The fixtures will be installed upon arrival. Councilmember Bolkcom stated they are still looking for volunteers for Pumpkin in the Park. 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 9:18 P.M. Respectfully Submitted, Krista Monsrud Scott J. Lund Recording Secretary Mayor