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CCM 07/10/2017 CITY COUNCIL MEETING CITY OF FRIDLEY JULY 10, 2017 The City Council meeting for the City of Fridley was called to order by Mayor Lund at 7:04 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 David Ostwald, 6675 East River Road NE Pat Gabel, 5947 – 2 ½ Street NE Brad Slawson, 18407 Highway 65 NE, East Bethel PRESENTATION: Anoka County Commissioner Jim Kordiak. APPROVAL OF PROPOSED CONSENT AGENDA: Councilmember Bolkcom asked about the extension on a variance and how many times Council should allow this to happen. Scott Hickok , Community Development Director, replied that Council has had extension requests before that have to do with budgeting for a project. There been situations in the past that have gone to a third extension. Councilmember Bolkcom said she cannot remember when we have done that many. Hopefully in the next year, he can get this done. They should indicate in the letter that this would be the end of any extensions. APPROVAL OF MINUTES: City Council Meeting of June 26, 2017. APPROVED. FRIDLEY CITY COUNCIL MEETING OF JULY 10, 2017 PAGE 2 NEW BUSINESS: 1.Preliminary Plat Request, PS #17093, by Kurt Manufacturing Co., Inc., to Replat the Property by Taking Two Irregular Shaped Lots and Creating Two Rectangular Shaped Lots, Generally Located at 7585 Highway 65 N.E. (Ward 2) APPROVED. 2.Extension Request for Variance, VAR #14-03, by James Lange, for Two Variances which will Allow a Single Stall Garage to be Expanded to a Double Stall Garage, Generally Located at 6940 Hickory Drive N.E. (Ward 3) APPROVED. 3.Claims 177203 – 177307. APPROVED. ADOPTION OF PROPOSED CONSENT AGENDA: MOTION by Councilmember Barnette to approve the proposed Consent Agenda. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. OPEN FORUM, VISITORS: Mr. Martinez spoke about a letter he sent to Jim Kosluchar regarding the flooding of their businesses. He asked Council to consider the minimum the group is asking for; which is the second option. This would solve the issue and is what should have been done before. Mayor Lund said that Council did have a copy of the letter. Staff has been very interested in trying to help him and the other businesses in that area. This had to be done correctly so businesses downstream were not affected. Staff has to cooperate with other jurisdictions and the County. It is not a simple fix. It all comes down to engineering and cost factors. Councilmember Bolkcom asked what the next steps would be. Jim Kosluchar , Public Works Director, replied the option for added capacity and the higher performing option is in draft form in the Capital Investment Program that was discussed at the conference meeting tonight. Staff made sure that this is a prioritized project. The next step is to make a final design and go out for bids which may happen this fall. The City needs to have a discussion with the watershed district. If other funding sources are available, staff will try to pursue them. FRIDLEY CITY COUNCIL MEETING OF JULY 10, 2017 PAGE 3 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 HEARING/NEW BUSINESS: 4.Consider Issuing an On-Sale Intoxicating Liquor License to Brad Slawson of Route 47 Pub and Grub, Located at 7820 University Avenue N.E.; and Motion to Approve an On-Sale Intoxicating Liquor License for Route 47 Pub & Grub, Located at 7820 University Avenue N.E. (Ward 3). MOTION by Councilmember Varichak to open the public hearing. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING OPENED AT 7:24 P.M. Deb Skogen , City Clerk, stated Brad Slawson has applied for an on-sale intoxicating liquor license to operate Route 47 Pub & Grub, a restaurant located at 7820 University Ave NE (formerly known as Pickle Park or The Park). Section 603.07 of the City Code requires a public hearing be held to consider the on-sale intoxicating liquor license. A notice of the public hearing was published in the Fridley SunFocus on June 30, 2017, meeting the ten day advance notice requirement. Ms. Skogen said Mr. Slawson has experience in restaurant management and is the owner of Route 65 Pub & Grub in Ham Lake. Mr. Slawson is aware of the food to liquor ratio and understands the importance of food sales. The Police Department completed their background investigation and found no issues with the business or the applicant. Ms. Skogen said Section 603.07.1.D. allows the City Council to approve the liquor license on the same night as the public hearing. Staff recommends the following actions:  Hold the Public Hearing for an on-sale intoxicating liquor license for Brad Slawson; and  Motion to approve on-sale intoxicating liquor license and other related business licenses to Brad Slawson, Applicant, for Route 47 Pub & Grub located at 7820 University Avenue NE. th Brad Slawson said he appreciated Council’s support. This is his 12 year in the business, which is focused on food, but they will have alcohol for sale plus entertainment on the weekends. FRIDLEY CITY COUNCIL MEETING OF JULY 10, 2017 PAGE 4 Route 65 is in their fifth year of business and they have never had a police officer called and they work hard for that not to happen. He hopes to bring that to Route 47--offering good food, a safe environment and fair pricing. Councilmember Bolkcom said if there is a situation where they need to call the police, they should make sure they do that so things do not get out of hand. She asked when they were opening. Mr. Slawson replied that they plan to open before or after Labor Day weekend. He stated they train staff to call police if needed, and he would feel comfortable to call police for safety reasons. They try hard to prevent that type of behavior. 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 7:34 P.M. MOTION by Councilmember Bolkcom to approve the On-Sale Intoxicating Liquor License for Route 47 Pub & Grub, located at 7820 University Avenue N.E. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. NEW BUSINESS: 5.First Reading of an Ordinance Amending Fridley City Charter, Chapter 7, Taxation and Finances. Deb Skogen, City Clerk, stated Minnesota Statute Section 410.12, Subd. 7, allows for charter amendment by ordinance upon recommendation of the Charter Commission. It requires a notice of public hearing and publication of the full text of amendment at least two weeks prior to the public hearing. On May 15, 2017 the Charter Commission recommended an amendment to Chapter 7 to City Council. The public hearing was scheduled on May 22, 2017. The public hearing notice and text of the amendment was published in the official newspaper on June 2, 2017. The public hearing was held on June 26, 2017, and there was no opposition to the amendment. Ms. Skogen said the Charter Commission had discussed and reviewed Chapter 7 extensively over the past year in light of budget constraints due to the restrictions placed in the Charter in 2000. The amendment to Section 7.02.1 proposes to remove the inflationary Consumer Price Index (CPI), allowing Council to increase tax levy up to 5% over the previous year’s tax levy. The Charter Commission also recommended the Council have the ability to increase the previous year’s tax levy up to an additional 3% with an affirmative vote of four members of the City FRIDLEY CITY COUNCIL MEETING OF JULY 10, 2017 PAGE 5 Council. A few other amendments were required to correct inconsistencies with Minnesota State Law and general accounting standards. Ms. Skogen stated the amendment requires a first and second reading and a unanimous vote of the City Council to become adopted. If adopted, the amendment becomes effective 90 days after publication (Nov 2). Staff recommends waiving the reading and holding the first reading on the proposed amendment to Fridley City Charter Chapter 7. Taxation and Finances. David Ostwald, 6675 East River Road, Chair of the Charter Commission, said this decision was not made lightly and the Charter Commission spent seven months going over data. The Charter Commission consists of 15 members, and they came to an overwhelming agreement that the Charter needed to be changed. There has been great support to send this to Council to vote on this. Mayor Lund thanked the Charter Commission for their willingness to consider this change. He feels confident and comfortable that Council will take this serious. For the last 17 years, Council only had one choice when it came to the budget. If we were short, things had to be cut because property taxes could not be raised. He appreciates the work of the Charter Commission. Pat Gabel, 5947 – 2 ½ Street NE, stated the former Charter change was detrimental to the City and she is in support of this change. MOTION by Councilmember Barnette to waive the reading of the ordinance and approve the ordinance on first reading. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 6.First Reading of an Ordinance Amending Fridley City Code, Section 102.01, Disposal of Lost and Stolen Property, to Allow for the Private Sale of Unclaimed Property to a Nonprofit Organization with a Significant Mission of Community Service. Deb Skogen, City Clerk, stated the Police Department receives approximately 70 to 100 lost, unclaimed or stolen bikes annually. Currently, City waits 60 days for the proper owner to claim a bike. If unclaimed, bikes are auctioned off with the current auction company, Propertyroom.com. The Police Department spends a significant amount of time entering data into Propertyroom.com, labeling each bike, and assisting in loading the truck for pick-up. Ms. Skogen said the proceeds from sales are deposited to the City’s general fund. Bikes sell from $6 to $25. The City receives 50% of the sale. The majority of bikes are sold in groups of up to 10 bikes due to the condition of the bikes. In 2016, the City received $142 for bikes sold on Propertyroom.com. Staff is looking for efficiency in disposing of unclaimed, lost or stolen bikes. This amendment would save police staff time, allow for sale to a private local nonprofit community organization. The bikes would be refurbished and repaired and distributed throughout the community. FRIDLEY CITY COUNCIL MEETING OF JULY 10, 2017 PAGE 6 Ms. Skogen said at this time, the Police Department would like to sell the bikes to the Fridley- Columbia Heights Rotary Club at a cost of $2 per bike. The Rotary Club would work with Bikes 4 Kids to refurbish, repair and distribute bikes. The cities of Blaine, Lino Lakes, St. Paul and Spring Lake Park are working with Bikes 4 Kids. Staff recommends a motion waiving the reading and holding the first reading of the ordinance. Brian Weierke , Public Safety Director, said they are trying to give back to the community and the way the ordinance reads now they have to sell the bikes through an auction. The amendment makes sense and saves staff time. When a bike is found, they have to wait 60 days for the bike to be claimed and after that it is abandoned property. This allows us to donate the bike for a good cause. MOTION by Councilmember Saefke to waive the reading of the ordinance and approve the ordinance on first reading. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 7.Resolution Approving and Authorizing Signing an Agreement with Sergeants of the City of Fridley Police Department for the Years 2017, 2018 and 2019. Debbie Dahl, Human Resources Director, said the Police Sergeants (LELS Local #310) have been unionized since 2003. They are one of three labor groups, and currently have six members. In the future, they plan to move an inspector over, so there will be seven in all. The current contract expired on December 31, 2017, and because they are essential employees, they cannot strike. They must reach an agreement or it goes to arbitration. We met on three occasions to discuss interests and could not reach a settlement. The Union filed for mediation with the Bureau of Mediation Services. Mediation was conducted on June 15, 2017, which resulted in a tentative agreement. Ms. Dahl said the Sergeants’ union recognizes the burdens of the City’s economic conditions due to the levy restriction and the priorities of the new civic campus. Wages are always the center of the discussions and the market was the primary issue with this unit with a desire to remain competitive. The challenge has been to agree on which cities we compare to. Our history has consistently showed that all groups (union and non-union) continue to lag behind the market in base wages. Ms. Dahl stated in 2006, the City revised the general compensation policies and identified 15 cities that were believed to be similar in size, make-up, kinds of services provided, proximity, etc. In 2015, the list was revised slightly by department managers. The Sergeants’ unit and the City could not agree on a mutual list in order to determine the market. This resulted in working with a mediator to come to an overall agreement. The key issues included good discussions, no final list established and both parties agreed on the terms presented in the memo. Keeping pace with the market is critical. Recruitment and retention is difficult if we do not remain competitive and fair internally as well as with the market. Maintaining good relationships is essential with all employees. The City’s interest is to establish fairness across all groups. FRIDLEY CITY COUNCIL MEETING OF JULY 10, 2017 PAGE 7 Ms. Dahl reviewed the proposed Agreement:  3 Year Contract (2017-2019)  Insurance is the same as non-union.  Wages - 2.5% for 2017, 2.75% for 2018, 3.0% for 2019. Non-union employees received 2% for 2017 and 2% is proposed for 2018.  Removed some outdated language  One additional holiday was added—from 11 to 12. The market shows peers are providing 12 days.  Employees wanted to add $25 to their Retiree Health Savings Account (Employee $$ only)  Annual Tuition Reimbursement to $3,600 (up $675 from $2,925. One member is currently enrolled.  Housekeeping and grammatical changes were made.  One additional member was added to the unit.  Retirements generated promotions.  Police Inspector changed to Sergeant. Ms. Dahl reviewed the costs summarized in the memo: $689,800 (2017); $779,768 (2018); $812,127 (2019). It is estimated there will be an increase of $34,218 to the General Fund for 2017. This does not include overtime, shift differential or court time, which is unplanned. It also does not include the possibility of the legislature changing the employer contributions for the PERA pension (1.5% over 2 years). They have reached a tentative agreement with the Fire Union and hope to bring that to Council at the next Council meeting. Patrol negotiations continue, and a mediation has been scheduled for the end of August. Ms. Dahl said action is needed to approve the resolution adopting the tentative agreement which will ratify the contract effective January 1, 2017. Retroactive pay will be applied within the next few weeks. In conclusion, all labor groups and their representatives are very dedicated and passionate. Requests were generally reasonable and discussions were amicable. She is grateful for Director Weierke and Chief Berg for their participation and leadership. Arbitrations can be very costly on both sides. Mediation is a good option. As an HR Director, she feels fortunate that we have had few issues, grievances or arbitrations, which is an indication of good relationships and trust going on behind the scenes to resolve problems and concerns. MOTION by Councilmember Saefke to adopt Resolution No. 2017-33. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY FRIDLEY CITY COUNCIL MEETING OF JULY 10, 2017 PAGE 8 8.Receive Bids and Award Contract for BID Packet 15 (Millwork) for the City of Fridley Civic Campus Project 595; and Resolution Awarding a Contract to Vision Woodworking, Inc., for Base Bid Tax- Exempt Materials Bid Package for the City of Fridley Civic Campus Project 505; and Resolution Allowing the Assignment to McGough Construction Company, LLC, as Prime Contractor and assignment of the Contract between the City of Fridley and Vision woodworking, Inc., to McGough as the City of Fridley’s Construction Manager at Risk for the City of Fridley’s Civic Campus project which includes: City Hall, Police, Fire, and the Public Works Buildings. Scott Hickok, Community Development Director, stated Council is asked to receive bids for Bid Packet 15 and award the contract to Vision Woodworking Inc. of Fridley. Staff was pleased with the bid and the company. Vision Woodworking also did the work at the Springbrook Nature Center. There is also a resolution that allows the assignment to McGough who is the Construction Manager at Risk. MOTION by Councilmember Saefke to Receive Bids and Award Contract for Bid Packet 15 (Millwork) for the City of Fridley Civic Campus Project 595. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIEDN UNANIMOUSLY. MOTION by Councilmember Saefke to adopt Resolution No. 2017-34, Awarding a Contract to Vision Woodworking, Inc., for Base Bid Tax-Exempt Materials Bid Package for the City of Fridley civic Campus Project 505. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION by Councilmember Saefke to adopt Resolution No. 2017-35, Allowing the Assignment to McGough Construction Company, LLC, as Prime Contractor and assignment of the Contract between the City of Fridley and Vision Woodworking, Inc., to McGough as the City of Fridley’s Construction Manager at Risk for the City of Fridley’s Civic Campus Project which includes: City Hall, Police, Fire, and the Public Works Buildings. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF JULY 10, 2017 PAGE 9 5.Informal Status Reports Scott Hickok, Community Development Director, mentioned the recycling drop-off day is Saturday, July 22. It will not be held at the Public Works building, but at Green Lights Recycling. He said post cards will be sent out to residents. 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 8:12 P.M. Respectfully submitted, Krista Peterson Scott J. Lund Recording Secretary Mayor