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CCM 11/14/2016 CITY COUNCIL MEETING CITY OF FRIDLEY NOVEMBER 14, 2016 The City Council meeting for the City of Fridley was called to order by Mayor Lund at 7:05 p.m. ROLL CALL: Mayor Lund Councilmember Barnette Councilmember Saefke Councilmember Varichak Councilmember Bolkcom OTHERS PRESENT: Wally Wysopal, City Manager Darcy Erickson, City Attorney Scott Hickok, Community Development Director Shelly Peterson, Finance Director James Kosluchar, Public Works Director Deb Skogen, City Clerk Julie Jones, Planning Manager Kay Qualley, Environmental Planner BOARD OF CANVASS MEETING Receive and Certify the Statement of Canvass from the General Election of November 8, 2016. MOTION by Councilmember Bolkcom to open the Board of Canvass meeting. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED AND THE BOARD OF CANVASS MEETING OPENED AT 7:05 P.M. Deb Skogen , City Clerk, Said State Law requires the City Council to canvass the results of the general election between the third and tenth day after the election. Ms. Skogen said that for the office of Mayor, Scott Lund received 8146 votes, Drew Schuette received 3,314 votes and there were 113 write-in votes. For the office of Councilmember-at- Large, Bob Barnette received 5,522 votes, David Ostwald received 5,062 votes and there were 90 write-in votes. There were a total of 15,620 registered voters at 7:00 a.m. and there were 1,673 Election Day registrations, for a total of 17,447 registered voters. Of those registered voters, 13,654 individuals voted in the City, thereby giving the City a voter turnout of 78%. This year voters could vote by absentee ballot without a reason and it was heavily advertised as early voting. The week before the election voters started streaming in at over 100 per day. The day before the election there were 426 absentee ballot voters. After reviewing the information, we FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 14, 2016 PAGE 2 found it did not change the voter turnout from previous years, in fact, this year we had fewer vote cast than past presidential elections. The increase in voter registration increased the number of registered voters and gave the City an average of 78% voter turnout. The citywide average turnout for absentee voting was about 18% and the average citywide voter turnout on Election Day was 63%. Staff recommends a motion accepting and certifying the results of the election. MOTION by Councilmember Bolkcom to receive and certify the Statement of Canvass from the General Election of November 8. 2016. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION by Councilmember Saefke to close the Board of Canvass Meeting. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED AND THE REPORT CLOSED AT 7:11 P.M. APPROVAL OF PROPPOSED CONSENT AGENDA: APPROVAL OF MINUTES: City Council Meeting of October 24, 2016. THIS ITEM WAS TABLED UNTIL NOVEMBER 28, 2016. NEW BUSEINSS: 1.Receive the Planning Commission Minutes of October 19, 2016. RECEIVED. 2.Special Use Permit Request, SP #16-06, by USAgain, to Allow Limited Outdoor Storage Along the West Side of the Property, Generally Located at 191 Osborne Road; and Resolution Approving Special Use Permit, SP #16-06, to Allow Limited Outdoor Storage for USAgain on Behalf of the Property Owner, Osborne Commerce Center, LLP, at 191 Osborne Road N.E. (Ward 3). ADOPTED RESOLUTION NO. 2016-64. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 14, 2016 PAGE 3 3.Vacation Request, SAV #16-01, by Fridley Land LLC, to Vacate a Portion of Northern Stacks Drive to Adjust the Street Right-of-Way to Match the Updated Development Plan. They are also Requesting the Some Drainage and Utility Easements be Vacated, as New Easements will be Re-Dedicated Upon Final Plan Approval of Northern Stacks rd 3 Addition, Generally Located at 41 Northern Stacks Drive N.E. and Resolution Vacation a Portion of Northern Stacks Drive and Vacating Drainage and Utility Easements within Lot 1, Block 1, Northern Stacks and Lot 3, Block 1, Northern nd Stacks 2 Addition, Generally Located at 41 Northern Stacks Drive N.E., Petitioned by Fridley Land LLC (Ward 3) ADOPTED RESOLUTION NO. 2016-65. 4.Approve Change Order No. 1 for the 2016 Street Rehabilitation Project No. ST2016-01. APPROVED. 5.Resolution Amending Resolution No. 2016-52 Designating Time and Number of Council Meetings for 2017. Adopted Resolution No. 2016-66. 6.Claims 174529 – 1747638. APPROVED. 7.Estimates: Northwest Asphalt, Inc. 1451 Stagecoach Road Shakopee, MN 55379 2016 Street Rehabilitation Project No. ST 2016-01 Estimate No. 5 ........ $ 37,488.31 Kuechle Underground, Inc. P.O. Box 509 Kimball, MN 56302 2015 Street Rehabilitation Project No. ST 2015-01 Estimate No. 11 ..... $ 163,054.39 APPROVED. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 14, 2016 PAGE 4 ADOPTION OF PROPOSED CONSENT AGENDA: Councilmember Bolkcom asked on Item 2 what types of materials were inside the container that needed to be reviewed by the Fire Marshall. She thought they were empty. Scott Hickok, Community Development Director, said the containers would be monitored to be sure there are no elements inside the containers that would be dangerous. Councilmember Varichak asked if the bins would be upside down or upright and if rain would accumulate in the bins. Mr. Hickok replied the container would be weather tight like a mail box. MOTION by Councilmember Barnette to approve the Consent Agenda with the removal of the minutes. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. OPEN FORUM, VISITORS: Bert Martinez, 7786 Beech Street, said at the last Council meeting, a group of owners were present. He asked what the next steps would be to solve the problems they have had in his neighborhood for years. James Kosluchar , Public Works Director, replied that on September 22 and 23, Fridley had historic flooding. Staff has followed up on the concerns expressed by the owners at the last City Council meeting related to flooding in Stoneybrook Watershed. He said they recognized that the September 22/23 flooding was a severe event in Fridley with 6 to 8” of rainfall in the Stoneybrook Watershed and it exceeded the 100 year/12 hour storm. A flood improvement project intended on increasing capacity is in the stormwater CIP, and the project goal is to mitigate flooding insofar as practical for these and other properties. A project kickoff meeting will be held this week with the Anoka County Highway Department and the Coon Creek Watershed District. Staff has been in communication with one of the owners, and will be in contact with all of the owners this week or next. Mr. Martinez said he would be open for any meeting and would be present to give any positive insight. Mayor Lund added that this is difficult because of the funds needed, and this is a more complex issue than a simple fix. He said they needed to deal with this problem and try to get his neighborhood some relief. Councilmember Bolkcom asked about the project kickoff meeting and what the goal was. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 14, 2016 PAGE 5 Mr. Kosluchar replied that the project would increase the capacity across East River Road; which is a large piece of the project. Some modeling has been done and staff will visit with property owners to help calibrate the project. We cannot guarantee the result will handle another large event but we will build to capacity as much as we can. Councilmember Bolkcom said Council will receive something back after the kickoff meeting as to what the next steps will be. Mayor Lund made comments about an anonymous letter he received. The writer spoke of 9 items. Street lights left on all day and all night and there were also lights out. Street lights are provided by Xcel Energy. He said he would make a telephone call to put them on notice that the lights are inefficient in some manner. Other comments were about rough streets. In every case, the writer talked of streets that were outside of the City’s jurisdiction—they were in the jurisdiction of the State or County. We will look at each aspect that was identified and make comment to MnDOT or the County Highway Department. Another comment was that the City had too many parks in Fridley and they are not being used. Mayor Lund welcomed the person to contact him specifically to have a two-way conversation on these issues. ADOPTION OF AGENDA: MOTION by Councilmember Bolkcom to approve the agenda. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. PUBLIC HEARINGS: 8.Consider the Revocation of Special Use Permit, SP #07-11, to Bernie’s Automotive, Located at 6528 University Avenue, for the Purpose of Operating a Repair Garage in a C-3, General Shopping Center District (Ward 3) (Continued May 9, 2016) MOTION by Councilmember Barnette 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 WAS OPENED AT 7:23 P.M. Julie Jones , Planning Manager, stated the owner of the shopping center has been responsive upon request and provided the City with a plan within two weeks when staff requested how they would resolve the outside issues. Staff have monitored the area, and the only problem was a few days ago some vehicles were stored outside. George was responsive moving the vehicles inside at night. Staff contacted the owner of the shopping center and he did not know who the vehicles belonged to. He figured out who vehicles belonged the next day and the vehicles were removed. The only concern with this SUP was staff did not make it clear about storage of unlicensed and inoperable vehicles. It is not listed in the stipulations because it is a City code. She said they FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 14, 2016 PAGE 6 deal with this code enforcement all the time. This has been communicated to George. Staff also spoke with Phil Herman so they understand that requirement. They work with a dealer who delivers vehicles from a junk yard and would be storing these vehicles outside. That is not okay. We are changing the recommendation so we can close this public hearing tonight. Staff will continue to monitor the site. Phil Herman, Horizon Management, thanked Council and Ms. Jones. He asked about unlicensed vehicles because they would be stored inside at night but would be outside during the day. Scott Hickok, Community Development Director, replied that the City does not allow unlicensed vehicles to stay outside. We are trying not to have outdoor storage because that is a problem for security and aesthetic reasons. The purpose is not to have vehicles outside if they are unlicensed or inoperable. Mayor Lund asked if it was okay to have those vehicles outside during operational hours. Mr. Hickok replied that it would not be okay for this to be ongoing but would be okay for the next few weeks. The owner needs to manage the logistics of the vehicles and get them offsite. Mayor Lund asked if it would be permissible to put in a fence closure to screen inoperable vehicles. Mr. Hickok replied he could look at the code but vehicles in a closed area are more at risk and staff would discourage that as a solution to this problem. Councilmember Bolkcom replied there is no room to do something like that. Mr. Hickok agreed. He said the site is not set up for that. Councilmember Bolkcom asked if police could come by and ticket those vehicles outside that have expired tabs. Mr. Hickok replied that is more of a code issue. The vehicles are not being driven on the road. Mayor Lund encouraged the owner to work with staff to come to an agreement. He also apologized for when they first met on May 9. Mr. Herman is an honorable person and he is doing his part to making our community look good. MOTION by Councilmember Bolkcom to close the public hearing. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING CLOSED AT 7:33 P.M. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 14, 2016 PAGE 7 9.Consider an Ordinance Opting Out of the Requirements of Minnesota Statutes, Section 462.3593 which Defines and Regulates Temporary Health Care Dwellings (Continued October 24, 2016) MOTION by Councilmember Bolkcom to open the public hearing. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING OPENED AT 7:34 P.M. Julie Jones, Planning Manager, stated the new State legislation requires cities to allow temporary family health care mobile dwelling units to be placed on property within the City to serve as temporary dwellings. The law was put into place to provide temporary transitional housing for those with mental or physical disabilities. Ms. Jones said the legislation includes a provision for cities to opt out. Many cities, including Columbia Heights, Coon Rapids, Crystal, New Brighton, and Spring Lake Park have already opted-out. Staff reviewed this item with Council at the August 22 work session and were advised to process the opt-out ordinance through the Planning Commission. Ms. Jones stated unless a city opts out of the new law, the temporary dwelling becomes a mandatory permitted use provided they follow the criteria within the state law. The new law is a short-term care alternative for a “mentally or physically impaired person”, by allowing them to stay in a temporary dwelling on a relative’s or caregiver’s property. Ms. Jones noted that staff are concerned that the new law may be well-intended, but there are many concerns that are not adequately addressed through the new law including: Allowing 2 dwelling units (even if temporary) on a parcel that is zoned for 1 dwelling; requiring the temporary structure to comply with setback requirements – limits placement of structures; there are Fire and Police access issues; safety of the occupant; and structures are not required to meet state building, plumbing, and electrical requirements. The $100 fee the State requires will not cover the City’s costs associated for approving the permit. There are also issues with the HIPPA data privacy laws related to the information the law requires the City to obtain from the impaired persons’ physician. Ms. Jones stated the Planning Commission held a public hearing on this request on September 21, 2016. No one from the public addressed the Planning Commission on this issue. After a brief discussion, the Commission recommended approval of the ordinance to opt-out. The motion was approved unanimously. Staff recommends concurrence with the Planning Commission and that the Council hold a public hearing to opt-out of Minnesota State Statue 462.3593. Mayor Lund said that he had a concern with the sewage, disability access, waterlines etc. The idea seems problematic. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 14, 2016 PAGE 8 MOTION by Councilmember Bolkcom to close the public hearing. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING CLOSED AT 7:40 P.M. 10.Consider the Intention to Issue General Obligation (GO) Capital Improvement Plan (CIP) Bonds and Adopt the City of Fridley Capital Improvement Plan for 2017 through 2021 . MOTION by Councilmember Bolkcom to open the public hearing. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING OPENED AT 7:40 P.M. Wally Wysopal , City Manager, stated that after nearly 3 years of analysis, citizen involvement and education, and preliminary designs, the City has reached the funding phase related to the construction of a new civic campus. Mr. Wysopal said in 2013, staff identified a trend of increased costs for repair and replacement projects needed to keep City Hall and the Public Works facilities viable--a sustained financial need of 2 to 3 times above what was available historically was necessary. Repairs included roof, parking ramp, HVAC and electrical systems, windows and façade. The size was inadequate for Police and Fire operations, training and gender separation. Accessibility did not meet ADA requirements in elevators, restrooms, stairwells, counters and entrances. It was unsafe to work in the undersized mechanics area. The fleet storage for $4 million worth of vehicles and equipment was outdoors, and draining and environmental runoff was going into Rice Creek. Mr. Wysopal said two choices were presented--to continue with rising repair costs or build a new facility. Does Fridley need to replace existing buildings? What would it mean to repair/remodel at current locations? To repair the current facility, the estimate cost is $35 million for Police, Fire, City Hall and Public Works buildings. This would raise the property taxes on a residential valued home at $170,000 about $6.70 per month. Several locations were available to build a new facility, but the Columbia Arena Site was the best option considering the location, size of the building and price/tax impact. Public safety would be 76,443 square feet, Public Works would be 86,838 square feet (including indoor fleet storage to prolong life of expensive vehicle and equipment) and the City Hall would be 25,803 square feet. This option would raise taxes on a residential valued home at $170,000 about $9.58 per month. The price is comparable to other government buildings that have recently undergone significant construction. Approximate cost per square foot is City Hall, Police and Fire $258.71 square foot and Public Works $196.33 square foot. Mr. Wysopal stated the anticipated remodeling cost at the current location would be approximately $35 million, the building would last 25-30 years and major repairs would begin after 15 years to remaining building components. This would meet the space needs; some FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 14, 2016 PAGE 9 inefficiencies would continue and there would be no flexibility for the future. In a remodel state, it would be a detriment to private development. There would be 1 to 2 years of interruption and temporary relocation of staff and services. No community areas would be built with the remodel of the current locations. Mr. Wysopal said that if a new facility was built at Columbia Arena, the anticipated cost would be approximately $50 million, the building would last 50+ years and major repairs such as roof would start around 30 years. A new building would meet all the needs for safety, accessibility, training, vehicle storage and operations with some added flexibility. The redesign would blend into surrounding properties and make private development for housing possible. There would be no disruption of services and a park, plaza, water feature and gathering area would be built for the community. Mr. Wysopal said if Council takes action on this the project, the start date would be in 2017 and the levy would also start in 2017. The bond amount would be $50 million and the project would get done. If a referendum goes through, the project would not start until 2018, the bond amount would be $55 million, and the project would only get done if 51% of the voters approve it through special election. With a referendum, the project still moves forward and is designed to attract the private residential development to the site which is contingent on the Civic Campus not moving forward. Today’s low interest rates may increase, there will be increased construction costs that will affect the bond amount, and the project would be delayed by at least one year. Mr. Wysopal said that immediate repairs are required to the present building, including approximately $3M in deferred repairs from 2014-2016. No reserves are available in Building Improvement Fund means the costs will come from money that would otherwise be used for City operations. These extraordinary expenditures will likely result in a reduction of City services. Issues are not going away and repair costs will continue to climb. A new plan and funding request will come back to Council in 2018 for the significant work needed to ensure buildings meet ADA and other legal requirements. Mr. Wysopal said after closing the public hearing, the Council would consider adoption of the CIP and preliminary approval of the financing. Subsequent to closing the public hearing, a 30- day “reverse referendum” period begins, during which time voters can petition for the decision to be put on a ballot. If a petition signed by eligible voters equal to 5% of the voters cast in the most recent general election is received by the City Clerk, the bonds may not be issued unless approved by the voters. The earliest an election could be held is in March 2017 and the bond amount will increase by $5 million. Mr. Wysopal stated although the plan is a 5-year document, the City anticipates the sole project to be funded through the CIP Act to include Police, Fire, Public Works and City Hall facilities located in the Civic Complex Redevelopment project area. This project area includes but is not limited to the site preparation work, buildings, fixtures, furniture, road improvements, utilities, parking, storm water management and landscaping. The maximum principal amount of CIP bonds that may be financed based on preliminary project costs of $50,500,000. The impact to FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 14, 2016 PAGE 10 the taxpayer is lessened due to significant debt paid off at the end of 2016. The operational levy will remain flat for 2017 which also lessens the impact of this new debt. Mr. Wysopal noted the plan provided defines the requirements of the CIP Act, the City’s project and the timeline for bonding. It is important to note that the debt will be issued following both Statutory Authority and Fridley Charter rules. A resolution adopting the CIP and preliminary approval for the issuance of the City’s General Obligation Capital Improvement Plan Bonds are included in Item #14 on the agenda. Councilmember Bolkcom asked Mr. Wysopal to mention some of the other buildings in Anoka County that have recently been built. Mr. Wysopal replied the City of St. Francis rebuilt in 2012, the Anoka County sheriff’s office in 2010, Columbia Heights in 2009, Circle Pines in 2006, City of Anoka in 2003, Lino lakes in 1999, and Coon Rapids in 1996. Councilmember Saefke said this current city hall and fire station used to be the entire city hall and was built in 1945. Over the years it has been added on to and adding more on to something old is more difficult than building new. The last time this building was touched was in 1989. The parking ramp is falling apart. There is a presentation on the City website if people want an update on what is going on with City Hall. There is only one bathroom at the Police station for 41 officers and 14 civilian staff. The new fire trucks do not even fit in the garage for storage or repair. Connie Metcalf , 860 West Moore Lake Drive, said she appreciated the work staff and Council are doing. Tonight is the first time she heard Moon Plaza was a consideration. She was concerned citizens do not have much input. Since we have to pay the taxes, taxing without representation is not fair. She asked what affect this would have on the schools. She said if they are already taxed to their limits, they would not vote in favor of school improvements. Mayor Lund said City Hall would be in the Spring Lake Park school district. The Fridley school district currently has a levy that will go on for 10 years. Pam Reynolds , 1241 Norton, said she was opposed to spending $50 million on this project. Councilmember Saefke mentioned the history of City Hall. In 1966, the Council passed a resolution to relocate City Hall to the exact same place that they are recommending to move to now. There was much discussion and it was put on a ballot and after a public hearing, it was determined people wanted it where it was--in the center of the city. Mr. Christenson was in a group that was put together by Council to make that determination then. The city is divided by major roads and there is no downtown. To move the City Hall in hopes of creating a downtown in an industrial area is no different than when they built it here hoping to create a downtown area. In 2013, an assessment was conducted and deferred maintenance was used many times. She said she was a tax payer and citizen and assumed Council was doing their job to get this done. People understand this building needs maintenance. From what she read, they did remodel in 1989 and have done nothing since; that is a lot of years. There are things that need to be fixed, repaired or expanded. This should have been done all long and taxpayers should not be FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 14, 2016 PAGE 11 hit with a $50 million request to do it all at once. This level of bonding is ridiculous. You have been working on this since 2013 and she has only have 30 days to get enough people to say they do not want this. We want you to fix where you are in the center of the city. Ms. Reynolds said people live on fixed incomes and taking $8 to $10 a month out of their pockets is a lot. This will create a big tax increase on businesses and families and we will see people leaving the city. It is a strain on the budget of a person who bought a home in Fridley. The rents of people who live in apartments will go up because the owner’s taxes went up. This creates a problem with rental. There is also an issue with the numbers because every time they are different. We have heard this property (Columbia Arena) will not be developed if a Civic Campus is not build on this site. Maybe the HRA should have thought about that before they bought it. She stated she is opposed, and there will be a petition. Mayor Lund said the planning for this campus started almost three years ago and the numbers do change because of inflation. There have been numerous repairs since 1989 to the current City Hall, to the roofs and air conditioners. Many long-term repairs that were needed have been deferred because we did not want to spend money if a new Civic Campus will go forward. Even if this project does not go forward, projects will still be deferred. Staff have looked long and hard at this project and after a commissioned study, it became evident we could not continue to put bandaids on our facility anymore. This is a good time to buy and it was not a mistake buying Columbia Arena because now we have control as to what goes in there. We do recognize this is a hardship for some. John Watkins, 255 Craigbrook Way NE, said he appreciated all the work that has gone into this project. He has been a Fridley resident since 2003. Fridley is a good place to live, but it is hard to find the center of the community. He felt the proposed location would help to signify the forward movement and look of the city. This is a good investment and he likes the idea of investing in the future. He thanked everyone for the work they did and said he hopes to invest money the future. Mandy Meisner, 7836 Alden Way, thanked Council for their time and efforts. She said she respected everyone’s concerns and oppositions. She is in support of this and understands this is an investment. Historical facts are appreciated. Her perspective is that it is 2016 and a good thing we are being open and honest in some things that continue to change in Fridley. What is in the past is not in the present. She was speaking for her own family and thinks it is these types of investments for buildings that keeps young professionals in Fridley. It also shows you care about the future and are making wise decisions on how you are investing our money. She would like to have it there for her children. Cindy Mable, 1214 Norton, said she opposed this project. She said 50 years was not a long time for a building. She asked who tears down their home after 50 years. If this project is delayed, it saves children money. She said to put it off until 2025. Going forward is taxation without representation. This is democracy and we have a say in what you do. A lot of people in the city are on fixed incomes. The tax increase is too much. Social security did not go up this year. The land is available now but other things can be done with it. Ten to fifteen years from now, there will be other property the City can buy. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 14, 2016 PAGE 12 Blaine Jones , 54 Locke Lake Road NE, said he is in favor of the proposal. He said $37 million to repair this old building was a waste of money. It is not considered an investment, but an expense. He said $50m was an investment. Buildings wear out. It makes good sense to have facilities where people can work. Expensive equipment needs to be stored properly. Richard Palmatier , 5437 Altura Road NE, said he was not pro or con for this proposal and had some follow-up questions. He asked what would become of the existing properties once the facility was open? He said in the past few years, he has noticed at various times the City has bought a piece of property and paid a dollar for it. That is not acceptable. Buildings should be sold so those monies can be put toward a new facility. That way we know our money is being put toward something and not put in the general fund. Mayor Lund replied this would be a minimum of a 15-month construction period and the City would still need somewhere to conduct day-to-day operations. We could try to sell this building and transfer ownership and rent back for 15 months, but that may be problematic. He understands Mr. Palmatier’s point and said he wants to see the City get as much money out of this building as they can. Land that is not large enough to develop and has gone back to the County and as sold for $2 square foot. Mr. Palmatier thought that the timeframe could be adjusted accordingly so that some funds from selling this building can be put toward the new building. Scott Hickok, Community Development Director, replied that staff does not want this building to sit vacant and deteriorate. This may become a developable site. It would not be sold for a discounted price and it is owned by the HRA. The funds from the sale would go into the HRA redevelopment fund. There is also interest from other cities to buy our fire training facility. Mr. Palmatier said he was just socked with a $2,000 tax assessment for the new road and has been waiting for six years for a rain garden to be developed in Altera Park. He asked how long it would take for this to get done. Jim Kosluchar , Public Works Director, added the construction of the rain garden 6 years ago did not happen because we were not able to get volunteers needed for the project. He will contact Mr. Palmatier to discuss the rain garden further. th Warren Woods, 6863 7 Street NE, asked if the development moves forward and this facility becomes vacant if moneys from the sale would be used to offset the proposed $50 million. He is leaning in favor of this project and is more pro than con for the project. Mr. Hickok replied the HRA owns this parcel and the moneys would go to the HRA fund to be used for other redevelopment projects in Fridley. Peter Borman, 157 River Edge Way, said he was in full support of this project. He is also on a fixed income. In 2010, he tore down a 50-year old home and built a new one. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 14, 2016 PAGE 13 Ryan Evanson, 1316 Hillcrest Drive NE, asked how cost overruns would be financed? How are costs determined? How do staff know they are getting the best bids? What bonding is coming up? How does staff determine this is the best time over other financial needs for this community? Mr. Wysopal replied the City has levy limitations that ties growth to the CIP which is zero for next year. Decisions to purchase any salt or asphalt are made on how much we buy and use. Costs to maintain this building will have to come out of the operations budget that will have no increase over the next year. With no growth in the levy, priorities will have to be made on what to fix first; roofs, ADA etc. We do not like to talk about tax increases, but maybe in 1966 it was the wrong decision. MayorLund said that a decision may need to be made to let people go or essential services will suffer. Mr. Kosluchar said that early in the process, we went out for proposals for a construction manager at risk. This person would act as the general contractor and will bid the project for a sub-contractor and they are required to come in at a fixed price. Going forward the City will negotiate a project with them for the final part of the building. They will deliver this at a fixed price so there is little risk for cost overrun. Overruns would be at the City’s choosing, if the City modified something from the original plan. Mr. Evanson asked how long the term was. Shelly Peterson , Finance Director, replied it is a 25-year term. Mayor Lund asked if Mr. Evanson was for or against the project. Mr. Evanson said he was undecided at this point. He agreed we need these facilities and understands that it is expensive. He trusts the Council’s leadership to make decisions for our community. Councilmember Bolkcom noted that comments were made that the City is taxing people without an opportunity to vote. Council looks at priorities every year and decides how much money we have and what has most importance. Mark Zolonok, 7442 Melody Drive NE, said he was a 25-year resident and stated that this is a good idea. A quality site has been selected and it will look nice for the City in the future. This will give a good image as people drive down University Avenue. There is interest in this building already. He does not suggest moving forward with any repairs on the current building unless it is an emergency. He asked if the new building would be expensive to maintain. Scott Hickok, Community Development Director, said the new building will be designed in every aspect from HVAC to the type of lighting to communication controls to determine the best value. The benefit is it can be designed to be very efficient and we can look at maintenance at a totally different picture. This would be expensive to do in the current building. The new FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 14, 2016 PAGE 14 complex can be efficient and designed, balanced and managed for all equipment on the roof and not putting more stress on one portion of the building. Over the long run, the costs will have efficiencies that were not available in this building. Mr. Peterson added the architects’ estimate utilities will be more because we will be providing space for equipment to be stored. The offset of the equipment will be that it will have a longer life being stored inside. th Betty Ann Addison, 1315 66 avenue NE, said she has lived in Fridley for 50 years and agrees it is time to invest in a new City Hall. Thirty years ago, we invested in the Springbrook Nature Center, and now it is a jewel in the City. Looking at the capital costs, it may seem high but for a $170,000 home it will be $10 a month or $2.50 a week. Terry Pierce , 8020 Ruth Street NE, said he has lived in Fridley for 40 years in the same house. He agrees with the proposal. He has seen a lot of changes with the schools. If we want kids to grow up in society we need to support it. Listen to the pros and cons. We need to look at the safety and occupants that are here. Fifty years from now this building will not serve everyone’s needs. We have millions of dollars invested in police and fire equipment and we need to protect this equipment. He loves the design and waiting one year will increase the price by 10%. For the future of the kids and the City, this is a great idea. Dave Sallman , 7812 Alden Way, said he is a retired City police officer and started in 1977. Redevelopment has happened through the times he has lived in the City. When this building was remodeled in 1989, they were restricted to this space only and added where the Council sits. Not much was done for the rest of City Hall. He said to look at other cities around us. We are in competition for residents, businesses and employees. This will not get cheaper and needs to be done sooner rather than later. Deb Strand, 590 Hugo St NE, said that assessments were done in 1999 for $2,000 in road improvements. She has seen some maintenance to the current building like fixing the roofs and air conditioning. She is concerned for the safety of Police and Fire accessing University in an emergency. Access will be better at the proposed site. This building is deteriorating and the parking lot may fall in someday. The office buildings are small and cramped. She sees improvements in her neighborhood; little houses go down, larger ones go up and it looks nicer. She is ready to fight for this building. She asked how much a special election would cost. Mr. Wysopal replied that a special election would cost between $15,000 and $20,000. Mayor Lund added that the cost will rise $3 to 5m if construction is delayed. Then the price would be $55m vs. $50.5m. Ms. Strand said she is also on a fixed income. She said she is willing to pay $10 a month for this project. Steve Eggert, 1090 Hathaway Lane, stated this is a terrific opportunity to consolidate City facilities. The City and HRA own the land, it is cleaned up and ready to go. Interest rates are FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 14, 2016 PAGE 15 low and private developers are excited to join this project. Not often can an operation build a new facility and still operate in an older facility which saves costs. When the Fridley Target store had to be torn down people complained about this. The store was built in the early 1960s and it became an obsolete building. It was an easy decision to tear it down; the building was at least 50 years old. Building a new campus will be able to have efficiencies built in and create an opportunity to make this an efficient operation. The time is now to move this operation. Delay will only add significant costs, interest rates, material costs and labor will go up. Prudent action is to build this new infrastructure which our current taxes do not provide for. Approve the CIP and financing. I have lived here since 1996 and have enjoyed the low taxes. Even with this increase of $100 a year, taxes are still lower than many surrounding communities. Low taxes, which staff and Council have operated the City on, does not provide for this infrastructure. It is time to do this. Dan Gourde, 609 Rice Creek Terrace, has been a resident since 1973. He said he has participated in meetings and the information provided to residents was well developed. This addresses many concerns residents have--safety, ADA, aging infrastructure, the list goes on. Interest rates are at an all-time low. If we wait, costs will increase for this project. He hopes Council proceeds accordingly. RachelOssmann, 6600 Lucia Lane, said the city had three years to bring this together and now they have 30 days to put together a petition. She wants to see children thrive in Fridley. She is not for a fancy new facility for Council members but is for a new facility for the police and fire department. She would like to stay in Fridley; the streets and schools are safe. th Susan Okeson, 1423 64 Avenue NE, said she watched the video online and cannot believe the conditions of the current facility. It makes good financial sense for the City to go ahead with this project. th Virgil Okeson, 1423 64 Avenue NE, said he is in favor of the project. It is time to put this building to bed. His background is in communications and he has run wires in old buildings and it is very hard to do. These facilities need to be replaced. Right now, to put a snowplow in the garage they have to take off the sander box. It takes time and money to go through this process. It is simpler and cost saving to be able to put the entire plow in the garage. It is a good idea to go for this new building and he supports the project. Joanne Zmuda, 6051 Fourth Street N.E., said she has not decided if the City needs a new building or if they should keep the old one. She is disgusted with the process. This project idea should have been taken to the voters before investing as much money as you have with the process. Repairs should have kept on. No one is taking care of it. The HRA owns the property so there is room to expand. It is unknown what the economy will do and it is risky to go into debt for $50 million when we do not know what the future holds. Residents should have a say in this. Let the people vote. Jeff Shaw, 5854 Stinson Blvd, said the City does have a democracy and we vote people in to represent us to run the city. We do have a say in what goes on here. When you look at the numbers, this is a no brainer. Do not keep repairing something that will just get in more FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 14, 2016 PAGE 16 disrepair. No one is looking at the numbers; $37 million to repair and only $13 million more for a new building. This would be a positive step for safety for this building and the entire city. He is 100% for this. He thanked Council and staff for all the work they have done. It is not an easy process. Jake Jacobson said he is for the building but wanted more information on the homes that would be built. Mayor Lund replied that this is a vision or a plan and a private developer would buy the land from Fridley and build homes. City hall would use 1/3 and 2/3 would be for homes. The City owns the property. Dave Kondrick, 280 Stonybrook Way, said he has been a citizen of Fridley for more than 14 years and is proud to be a Fridley resident. He is in favor of this project and will do all he can to make sure this happens. Bill Linton, 39 Logan Pkwy, said he is 100% behind Council on getting this new facility built. This is a perfect opportunity and time for the current building to go. He is willing to work toward this. Karen McClellan, 7671 Brigadoon Place, said she is a 30-year Fridley resident and is strongly in favor of this development. As a tax payer, she is willing to support schools and public services. This will make Fridley a more attractive place to live and will also increase the value of our homes. She thanked everyone for their efforts and agreed that this is a great time to be wise about our spending and supports what Council is planning to do. Ross Meisner, 7836 Alden Way, said he has been a business owner for 9 years and this is a good investment to build something like this. He has been involved in a charter school and raised $26 million to build a new school which is a scary thing but without it, it is stagnation. This is a good use of the property and a great idea. Cindy Ruschy , 584 Janesville, said she is a prior employee of the City who is on a limited income and not old enough to receive social security. This project is worth the money. As a prior employee, she recalls the facility never being big enough for training, and the working space was not adequate. The City needs a nice space and things need to be updated. She is in favor because a lot of people would benefit from this project. Jay King, 1586 Osborne, said he has been a project manager for many years and people grit their teeth when there is talk about raising taxes. He is willing to bite the bullet and spend the money. The Columbia Arena site is not pretty right now. He asked if a market analysis had been done to show how many jobs would be coming in because of this project. This will be a boost to the economy. Change is mandatory but growth is optional. Pat Gabel , 5947 – 2 ½ Street NE, noted that there has been a lot of positive things said here tonight and that is encouraging. We need to do what is best for the city and move forward with this bonding. She does not think the cons have the best interests of the city at heart. We just had FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 14, 2016 PAGE 17 an election and voted for the Council to represent us. Council and staff have spent a lot of time and effort on this project and have done well with it. Kay Mead, 125 Hartman Circle, said she did not know the City was going to ask for more tax money. Ten acres with high density housing and vacating these premises will increase the tax base in Fridley. The current facility is broken and we need to go ahead with this bond. Steve Billings said he spent 19 years on the City Council starting in 1989. The first thing on the agenda in 1989 was to approve a contract to remodel this building. His thought was why remodel this place and why not build something new. He was in favor of moving out in 1989 and is still in favor of moving out of this building. In 1989, the building was expanded but most was patched, fixed and repaired. $37 million costs $6 a month. A new facility would be $10 a month which is only $4 more a month. This is a great idea and Council and staff are doing a swell job. The amount of public input is wonderful. The articles in the newsletter, things on television, videos on internet; you are doing a great job at letting the public know what is going on. This is the best thing to happen to Fridley right now. MOTION by Councilmember Bolkcom to move into record an email from David Ostwald. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOMTION CARRIED UNANIMOUSLY. 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 UNANIMOUSLYAND THE PUBLIC HEARING CLOSED AT 9:36 P.M. 11.Consider Text Amend, TA #16-04 to Amend Chapter 205.30 0-5, Telecommunications and Towers. MOTION by Councilmember Barnette to open 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 OPENED AT 9:45 P.M. Scott Hickok , Community Development Director, stated technology is continually changing which requires updates and changes to telecom facilities and equipment. The City has received a couple requests from a company to install smaller telecom equipment and antennas within the public right-of-way. Our current ordinance does not list the public right-of-way as an approved site, therefore prohibiting them within the public right-of-way. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 14, 2016 PAGE 18 Mr. Hickok reviewed that in December of 2015, City staff asked Council to establish a moratorium to allow staff the time needed to conduct research and analyze what other cities have done in regards to this new technology. Council approved the moratorium and at this time, staff has prepared the text amendment language for the Telecommunications and Towers ordinance. This new language address Distributed Antenna Systems (DAS), or what is also referred to Small Cell Sites within the right-of-way. Mr. Hickok stated the City Attorney and staff have consulted with the League of Minnesota Cities and other cities within the metro regarding this new technology. Through those consultations and discussions with the City’s Public Works Director, we drafted this text amendment that will allow this new technology within the public right-of-way, provided specific performance standards can be met. Mr. Hickok outlined some changes:  Referenced DAS/Small Cell Technology in the Purpose and Intent Section  Modified Definitions: Applicant o Public utility structure o  Added Definitions: DAS o Telecommunications Right-of-Way User o  Added a Section Under Uses Permitted for a DAS and created performance standards that: Limits location to an existing utility structure, excluding stop lights o Ensures there is no interference with public safety communication o Requires a license with the City if attached to a city-owned structure o Requires the new equipment to match the existing utility pole as much as o possible Limits the size of the structure and how far it can extend from the pole o Requires that the applicate be a telecommunications right-of-way user and o gets any applicable permits from other government agencies Mr. Hickok noted that this technology will be allowed through the issuance of a City right-of- way permit and/or a building permit and outlined what had changed:  Establishes an application process to allow a DAS in the Right-of-way requiring: Structural engineering on the utility structure o Geological engineering confirming the soils can support the structure with o the DAS attached A scalable site plan o Completed applications o Assurance that all other applicable licenses and permits have been o approved from other government agencies Re-worded the Abandonment section o To include DAS in the regulations o FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 14, 2016 PAGE 19  Added a Section on No Recourse  Creating a clause that the applicant/permit holder cannot hold the City, its elected officials, etc. responsible for damages  Added a Section on Data Practice Mr. Hickok said the City has to follow Minnesota Government Data Practices Act regarding information submitted to us. The Planning Commission held a public hearing for this item at their October 19, 2016 meeting. No one from the public addressed the Commission. The Commission unanimously recommended approval of TA #16-04. City staff recommends concurrence with the Planning Commission and that Council hold a public hearing. Councilmember Bolkcom asked on page 156, E2, for an example of a decorative public utility structure. Mr. Hickok replied that it could be a decorative light fixture. Councilmember Bolkcom noted that it says it may prohibit them. Mr. Hickok clarified that it gives the option to prohibit them. Councilmember Bolkcom asked about the sizes on the next page. Mr. Hickok replied that several resources were used to come up with the sizes. Darcy Erickson , City Attorney, added that several ordinances across several cities were considered and this is the uniform size that was referenced in sample ordinances. Councilmember Bolkcom asked on page 167, related to abandonment, what happens when cell tower companies go belly up. Mr. Hickok answered if the site and equipment is abandoned, the equipment would be cleared out. If the company was sold to someone else, the license would need to be reconsidered. MOTION by Councilmember Barnette to close the public hearing. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DELCARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING CLOSED AT 9:56 P.M. NEW BUSINESS: 12.First Reading of an Ordinance Amending Fridley City Code Chapter 113, Solid Waste Disposal and Recycling Collection. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 14, 2016 PAGE 20 Kay Qualley, Environmental Planner, stated the proposed revisions to Fridley City Code Chapter 113, Solid Waste Disposal and Recycling Collection, were reviewed and approved by action from the Planning Commission at a public hearing held on September 21, 2016. The Chapter 113 text amendment was then recommended for approval by the City Council. Prior to review by the Planning Commission, the Environmental Quality and Energy Commission had recommended the creation of a special license for collection of organics, which the City does not currently permit. Ms. Qualley said Council reviewed the Chapter 113 proposed text amendment at a second public hearing on October 24, and the public commented. Because of that input, the following changes to the proposed text amendment have been implemented for the first reading of the ordinance:  Under 113.15.1, the language about weekly containerized yard waste collection was clarified to read, “No person shall engage in weekly containerized collection or conveyance of said containers of solid waste, yard waste, organics or recyclable material…”  Minor language inconsistencies were reconciled in the Chapter title, under 113.02 and 113.09. Ms. Qualley stated staff recommends approve the first reading of this ordinance. The second reading of the ordinance will be scheduled for November 28, 2016. MOTION by Councilmember Bolkcom to waive the reading of the ordinance and adopt the ordinance on first reading. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 13.First Reading of an Ordinance Opting Out of the Requirements of Minnesota Statutes, Section 462.3593, which Defines and Regulates Temporary Health Care Dwellings. MOTION by Councilmember Bolkcom. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 14.Resolution Giving Preliminary Approval for the Issuance of the City’s General Obligation Capital Improvement Plan Bonds in an Amount Not to Exceed $50,505,000 and Adopting the City of Fridley, Minnesota, Capital Improvement Plan for 2017 through 2021 Under Minnesota Statutes, Section 475.521 FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 14, 2016 PAGE 21 MOTION by Councilmember Saefke to adopt Resolution No. 2016-67. Seconded by Councilmember Bolkcom. Cindy Rushy asked what was half of the voters? Mayor Lund replied 5% of the voters that came to the polls; 5% of 17,000. They would need a little over 700 signatures. Ms. Peterson clarified that over ½ the people voting that day need to vote against the project. Mayor Lund said they would need about 700 signatures and 50 +1% would have to vote for or against the project. Brian Olson, Anoka County Record, said that the charter says it’s 51%; not 50 + 1%. Pam Reynolds, 1241 Norton, asked what the resolution number will be if this is passed. Mayor Lund said the resolution number will be placed on it tomorrow. Councilmember Bolkcom said the standard procedure is the next day. Darcy Erickson, City Attorney, clarified that the 30 days does not include the day of the hearing; it includes the last day. It will be commencing tomorrow. Mayor Lund noted that a couple people tonight said that this was not a democracy. We make decisions at every Council meeting. Democracy has not been diminished or lacked during these three years and there are many moving parts. If we were not a charter city but a statutory city there would not be a provision for a reverse referendum. We can be more restrictive than the state law with the charter; we have more control and say. This could not have been done any different than we did and we did a good job at getting information to the people. Not everyone agrees. Rest assured that the process was as transparent as people wanted it to be. Tonight, the room had over 100 people and we have 17,000 registered voters. It is difficult to get information to the people. This is a good process and is the right course of action. Ms. Peterson stated that the CIP states the majority of voters voting on the question. She believes the CIP is more restrictive than the 51%, so will need clarification from the bond advisor. She calculated that 769 signatures would be needed to put this item to vote. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 15.Resolution Deferring Special Assessment Payments for the Properties Located at: 4566 ndnd 2½ Street NE, 4707 2 Street NE, and 4724 2 Street NE in Regards to Street Improvement Project No. ST 2016-01 Shelly Peterson , Finance Director, stated staff received requests from three residents this fall to defer the 2016 Street Improvement Project. Minnesota Statutes authorize cities to defer special FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 14, 2016 PAGE 22 assessment payments for certain senior and disabled individuals. The deferment of assessments may be permitted at the discretion of the City Council. The City Council by virtue of Resolution 14-1995 has established a number of factors as a basis for granting special assessment deferments. Staff has reviewed the required factors and has determined the residents meet the necessary factors and are eligible for the deferment. Ms. Peterson said staff has had discussions with the applicants and they are aware that during the deferral period, interest at 5.25% is accruing and will be added to the outstanding principal balance each year. Assessment deferrals are an option for individuals who have financial difficulty paying for an improvement. However, the long-term cost of the assessment can become substantially more burdensome given the cost of the accrued interest over the deferral period. Ms. Peterson noted that repayment of the assessment will begin once the property is no longer eligible for deferment, such as the sale of the property or the property is no longer homesteaded. The repayment timeframe is dependent upon the cause of the property no longer being eligible for deferment. For example, if the property sold, repayment of the entire assessment would be due upon closing of the property. However, if the property remains in the owner’s name but is no longer homesteaded, the property would be able to repay the assessment over a ten year timeframe. Ms. Peterson said that in addition to the resident meeting necessary requirements and completing an application process, Anoka County requires the City Council to pass a resolution approving the deferral. If approved by Council, staff will be submitting a copy of the resolution along with the necessary paperwork to the County on Wednesday, November 23. The deferral of these assessments will not pose a financial burden on the Street Capital Improvements Fund. Ms. Peterson stated staff recommends Council approve the attached resolution. MOTION by Councilmember Bolkcom to adopt Resolution No. 2016-68. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY 16.Informal Status Reports: Wally Wysopal , City Manager, said the All-Star Medtronic volunteers planted 80 trees on November 4 plus 35 trees in the spring for a total of 115 trees. Scott Hickok , Community Development Director, noted that Kay Qualley worked weekends this summer and met with volunteers most weekends. He thanked Medtronic and Kay for coordinating this project. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 14, 2016 PAGE 23 ADJOURN: MOTION by Councilmember Barnette to adjourn. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED AND THE MEETING ADJOURNED AT 10:27 P.M. Respectfully submitted by, Krista Peterson Scott J. Lund Recording Secretary Mayor