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HomeMy WebLinkAbout07-12-10-R'~~`- EN HILLS Approved: CITY OF ARDEN HILLS, MINNESOTA REGULAR CITY COUNCIL MEETING JULY 12, 2010 7:00 P.M. - ARDEN HILLS CITY COUNCIL CHAMBERS CALL TO ORDERIROLL CALL Pursuant to due call and notice thereof, Mayor Stan Harpstead called to order the regular City Council meeting at 7:04 p.m. Present: Mayor Stan Harpstead, Council Members Fran Holmes, Brenda Holden, David Grant, and Dave McClung Absent: None. Also present: City Administrator Patrick Klaers; Finance Director/Treasurer Sue Iverson; Community Development Director James Lehnhoff; Civil Engineer Kristine Giga; Parks and Recreation Manager Michelle Olson; City Planner Meagan Beekman. PLEDGE OF ALLEGIANCE 1. APPROVAL OF AGENDA MOTION: Councilmember Holden moved and Councilmember Mayor Harpstead seconded a motion to Approve the Agenda as presented. The motion carried ~, unanimously (5-0). 2. PUBLIC INQUIRIES/INFORMATIONAL A. TCAAP Reuse and Public Sale Update Community Development Director James Lehnhoff stated the General Service Administration (GSA) posted draft terms of the sale for the TCAAP property on their website. The terms will form a significant portion of the Invitation for Bid (IFB). The City submitted a letter to the GSA with comments regarding the proposed terms on July 7. A conference call with the GSA is anticipated to be scheduled for the week of July 19 to follow up on the City's letter, the status of the IFB, the timing of the auction, and any other updates since the bidders conference, The City Council approved the TCAAP Zoning regulations at their June 29 meeting. The City's consultant ARDEN HILLS CITY COUNCIL -July 12, 2010 2 2.A. TCAAP Reuse and Public Sale Update (continued) attorney reviewed .the amendments made at the Council meeting, and she did not have any changes. The regulations were submitted to the Shoreview-Arden Hills Bulletin for publication and they will be in effect on July 14. Greg Mack is continuing to work with the GSA to obtain an access agreement to the TCAAP site for further environmental investigation. Once the County has access, they will discuss enrolling in the Minnesota Pollution Control Agency's Voluntary Investigation and Cleanup (VIC) program. PUBLIC Mayor Harpstead opened the Public Inquiries/Informational at 7:07 p.m. Mr. Steve Wellington, President of Wellington Management Inc, and Owner of Arden Plaza, clarified that the request being presented as Item 8A is only for the extension of time for the building permits and filing of the final plats for the three phases of development. The request for the change in the construction plans is not going to be considered at this time. The plans for this are still being reviewed and a suitable solution is being sought. He thanked the Council for their time and consideration regarding this project. Mayor Harpstead closed the Public Inquiries/Informational at 7:10 p.m. 3. APPROVAL OF MINUTES None. 4. CONSENT CALENDAR A. Claims and Payroll B. Cable Services Contract Renewal with the City of New Brighton C. Ramsey Conservation District Shared Service Agreement D. 2010 Sanitary Sewer Lining Project Change Order #1 E. 2009 Budget Adjustments MOTION: Councilmember McClung moved and Councilmember Holden seconded a motion to approve the C_,ent Calendar as presented and to authorize e_ution of all necessary documents co~nta--fined therein. The motion carried unanimously (5-0). 5. PULLED CONSENT ITEMS None. 6. PUBLIC HEARINGS ARDEN HILLS CITY COUNCIL -July 12, 2010 3 6. Public Hearings (continued) A. Resolution 2010-037 Ordering Abatement at 1960 County Road E2 for Noxious Weeds and Other Growths of Vegetation Not in Compliance with City Regulations B. Resolution 2010-036 Ordering Abatement at 4108 Valentine Crest Road for Noxious Weeds and Other Growths of Vegetation Not in Compliance with City Regulations Community Development Director Lehnhoff stated due to complaints regarding grass and weed growth, Staff inspected 1960 County Road E2 and 4108 Valentine Crest Road. After the inspection, it was determined that the properties were in violation of Section 602.02 Subd. 6 of the City Code: noxious weeds and other growths of vegetation upon public or private property in excess of eight (8} inches. This type of violation allows the City to use the accelerated abatement process in Section 602.07 of the City Code. A letter was sent to the property owners informing them of the code violation on June 8 and June 16, 2010. The letter was also posted at the properties. The property owners did not contact the City or resolve the violation; therefore, a certified letter was sent on June 24, 2010, requesting compliance by July 6, 2010. The property owners have not made any attempt to resolve the situation or to contact the City to set up a compliance schedule. Due to the ongoing nature of the violations and since the property owners have made no attempt to contact the City to resolve the violation, Staff is requesting the City Council issue an order for abatement of noxious weeds and growth of vegetation in excess of eight inches at 1960 County Road E2 and 4108 Valentine Crest Road and to continue the abatement order for atwo-year period. The property owners have seven days from the Council's order to complete the work before the City can have the work completed. An abatement order allows the City to hire a contractor to complete the work on the property and charge the cost back to the property owner. The charge is 125 percent of the cost of the work plus administrative costs. If the charges are not paid, the charges will be certified against the properties for collection with the property taxes. The City has secured a contractor that is also used by the Cities of New Brighton and Mounds View. The contractor charges between $SO and $70 per lot depending on the size. If the same violation reoccurs within two years of the Council's order, Staff can order abatement without an additional Council hearing or action. A letter would be sent to the property owner ordering the violation to be resolved within seven working days. If the violation is not resolved, Staff can order the abatement and charge the expense back to the property owner. Prior to any action, the Council must provide a hearing for the property owner. The property owners were notified of the hearing in conformance with the City Code. Mayor Harpstead opened the public hearing at 7:16 p.m. Mayor Harpstead closed the public hearing at 7:17 p.m. MOTION: Councilmember Grant moved and Councilmember McClung seconded a motion t,_ o approve Resolution 2010-037 Ordering Abatement at 1960 County Road E2 and Resolution 2010-036 Ordering Abatement at 4108 Valentine Crest Road for Noxious Weeds and Other Growths of Vegetation Not in __- Compliancewith City Regulations. The motion carried unanimously (_5 0)_ ARDEN HILLS CITY COUNCIL -July 12, 2010 4 7. NEW BUSINESS A. Resolution 2010-038 Awarding Bid for the CP Rail Trail Crossing Project & Addendum No. 2 with Bolton &Menk, Inc. for Construction Services in an Amount of $40,032 Civil Engineer Kristine Giga stated on May 24, 2010, the City Council approved the plans and specifications for the CP Rail Bridge Trail Crossing Project and ordered advertisement for bids. Bids were solicited during June and early July. Based on the bids received, Staff recommends awarding the project. The lowest bidder is Blackstone Contractors, or Corcoran, Minnesota. The bid is 11 % lower than the engineer's construction estimate and 1 % higher than the budgeted amount of $310,000. The engineer's estimate was higher than the budgeted amount due to modifications requested by the railroad during final design. This project is budgeted to use State Aid Funds and the engineering costs are to be funded out of the Park fund. The City's current State Aid Fund balance is $1,098,113.97. The City contracted with Bolton &Menk for engineering services through the design phase only, as it was u~lknown whether the project would move forward to construction. Bolton &Menk has provided Addendum No. 2, with a proposal for construction engineering services for a cost of $40,032. While Bolton & Menk's original estimates for the construction engineering services during the 2009 Capital Improvement and Budget discussions were estimated at $30,000, final plans were not complete and it was based on an estimated six week construction period. After giving consideration to the complexity of the final plans, and Ramsey County's limitations to allow complete closure of the road for a maximum of seven (7) days only, the specifications were written to allow for an eight-week construction period, to keep the project more manageable for the bidders and allow them to bid more competitively. Lametti & Sons have contested the low bid by Blackstone Contractors stating the bid was received after the end time of 1:00 p.m. City Attorney Jerry Filla has reviewed this and has verified that Blackstone Contractors is the low bidder and their bid was received by the 1:00 p.m. deadline. Councilmember Holden asked for clarification regarding the claim by Lametti & Sons that the bid received by Blackstone Contractors was not received before the bids were closed. She asked when the bid was delivered by Blackstone Contractors. Parks and Recreation Manager Michelle 41son stated the official person collecting the bids was the receptionist and the clock that is present at this desk was designated at the official clock. The receptionist time stamped all the bids as they were received. The bid from Blackstone Contractors was received by the receptionist at 1:00 p.m. and brought into the Council Chambers at 1:01 p.m. Travis Winter from Bolton &Menk had just announced the bid opening when the Blackstone bid was brought in. The clock in the Council Chambers is three (3) minutes faster than the receptionist clock and the bids were opened at 1:04 p.m. according to the Chamber clock and 1:01 p.m. according to the receptionist clock. The time discrepancy was noted before the bids were collected and the official clock was determined before any bids were received. She also clarified that it is standard procedure for all bids to be recalculated to verify accuracy. It is not uncommon to have calculating errors on bids. Once the bids were recalculated it was determined that the lowest bid was the bid received from Blackstone Contractors. During the meeting when the bids were opened, Lametti & Sons was the lowest bidder but when the totals were verified and checked it was determined that Blackstone Contractors was the lowest bidder. ARDEN HILLS CITY COUNCIL -July 12, 2010 5 7.A. Resolution 2010-038 Awarding Bid for the CP Rail Trail Crossing Project ~ Addendum No. 2 with Bolton &Menk, Inc. for Construction Services in an Amount of X40, 032 (continued) Councilmember Holden asked if the City had worked with either Blackstone Contractors or Lametti & Sons in the past. Civil Engineer Giga stated Roseville has worked with Lametti & Sons in the past and Arden Hills would be working with Lametti & Sons on the sewer-lining project this year. Neither City has worked with Blackstone before, however, Staff did check references which were all positive. Mayor Harpstead asked Civil Engineer Giga if this type of situation had ever occurred in the past and what the results had been. Civil Engineer Giga stated almost always in a project there are miscalculations in at least one of the bids presented. This is why all bids are recalculated before a proj ect is awarded. This does not always result in a change of who is the low bidder. Last year Roseville did have a situation where the apparent low bidder at the meeting was not the low bidder when the bids were verified. Roseville awarded the bid to the new low bidder. MOTION: Councilmember McClung moved and Mayor Harpstead seconded a motion_to Adopt Resolution 2010-038: Awarding the CP Rail Bride Trail Crossing Pr~ to Blackstone Contractors, of Corcoran=Minnesota, in the Amount of $312,587.27 and to Approve Addendum No. 2 with Bolton &Menk, Inc. for Construction Engineering Services in,an Amount of $40,032. Mr. Mark Jay, 4411 Morningside Avenue, Vadnais Heights, representing Lametti ~ Sons, stated the bid opening was in process in Council Chambers. The clock in the Council Chambers is three (3) minutes faster than the clock at the receptionist desk so anyone bringing in a bid according to the receptionist clock would have been late according to the Chamber clock. Lametti & Sons is requesting the bid from Blackstone Contractors be considered nonresponsive since the bid opening was underway when it was brought into the Chambers. According to the specifications set by Bolton &Menk bids could not be received after the opening of the bids had started Councilmember Holden asked who Lametti & Sons had brought their bid to when it was brought in. Mr. Jay stated he had not personally brought it in but assumes it went to the clerk. Councilmember Holden clarified the clerk who received the bid from Lametti & Sons was the same clerk who received the bid from Blackstone and the same clock was used when these bids were receive . Councilmember Holmes asked if the Blackstone had changed their bid in order to under bid Lametti & Sons. Parks and Recreation Manager Olson stated the companies did not change the bids received by the City. The changes that occurred were the result of calculating errors on the bids that were ARDEN HILLS CITY COUNCIL -July 12, 2010 6 7.A. Resolution 2010-038 Awarding Bid for the CP Rail Trail Crossing Project & Addendum No. 2 with Bolton & Menk, Inc. for Construction Services in an Amount of X40, 032 (continued) submitted. She also clarified the official clock to use for time stamping the bids had been determined prior to the bids being received. Councilmember Holden stated there should be no issue since all the bids were turned in to the same person using the same clock and the same procedure. Councilmember McClung agreed there was no issue with the bids received since all the bids were submitted to the same person using the same clock and the same procedures. Councilmember Holmes clarified the bid received from Blackstone Contractors was the low bid once it had been recalculated and this was not the result of them changing their bid and this was received by the end time of 1:00 p.m. Civil Engineer Giga stated this was correct. Councilmember McClung asked if Blackstone Contractors was obligated to the bid they presented even with the calculating errors. Civil Engineer Giga stated once a calculating error is identified the contractor is notified and they are obligated to this bid. Councilmember Holden stated the second paragraph of the letter from Lametti & Sons states the bid from Blackstone was received after the bid had been declared closed. She asked if it was announced in the Council Chambers that no more bids would be accepted and if so she asked if this was before the bid from Blackstone was provided. Parks and Recreation Manager Ulson stated Travis Winter from Bolton & Menk had announced the opening of the bids at 1:01 p.m. and at that time the bid from Blackstone had not been brought into the room. Mr. Winter opened the bids at 1:01 p.m., which is the time on the receptionist's clock. All the bids were sealed until this time. She clarified the bid had been received at 1:00 p.m. from Blackstone but had not been brought into the Council Chambers until 1:01 p.m. and Mr. Winter had only declared the bids open. Mr. Jay stated he was not at City Hall the day the bids were opened but he had been told they were in the process of opening the bids, which means no more bids are going to be accepted. Once the bids are being opened then the bid is closed and no more can be accepted Councilmember Holmes stated the City's procedure is a designated person would receive the bids by the designated time. These bids would then be brought into the Council Chambers to be opened. ARDEN HILLS CITY COUNCIL -July 12, 2010 7 7.A. Resolution 2010-038 Awarding Bid for the CP Rail Trail Crossing Project ~ Addendum No. 2 with Bolton ~ 1~Ienk, Inc. for Construction Services in an Amount of X40, 032 (continued) Mayor Harpstead stated City Attorney Jerry Filla has reviewed the request by Lametti & Sons to have the bid from Blackstone declared nonresponsive. City Attorney Filla indicated in his letter to the City that Blackstone Contractors bid was received in time and should be considered the lowest bid.. He stated he would support this recommendation as long as Blackstone Contractors is qualified. He stated he would vote in favor of the motion on the floor. Councilmember Holmes stated with the recommendation from City Attorney Filla she would also support Blackstone Contractors as the lowest bidder. She asked if the $40,000 addendum for Bolton & Menk is excessive for this project. Councilmember Holden stated this figure seemed reasonable given the fact the project was over $300,000. Civil Engineer Giga stated the City had been unsure about taking this project to construction at this time so the original contract with Bolton & Menk did not include construction engineering services. As the City has progressed through each step in the process the addendums have been added to the contract with Bolton & Menk. The current addendum for $40,032 is for construction services and this amount is about 15% of the project total. This is a standard amount. Councilmember Holden stated the presentation had outlined costs for Arden Hills utilizing Roseville's engineering services. She asked if these costs were in addition to the contract Arden Hills had with Roseville or if these costs were included in that contract. Civil Engineer Giga stated these costs are incorporated into the Joint Powers Agreement. The motion was called to a vote. The motion carried unanimously (5-0). B. Holiday Station Application for Off-Sale 3.2% Beer License City Administrator Patrick Klaers stated the City has received an application from the Holiday Station, 1920 Highway 96, for an off sale 3.2% beer license. A background check has been completed and the Lake Johanna Fire Department conducted a fire safety inspection and found no violations. This application meets the requirements of the City Code, Chapter 5, Alcoholic Beverages, for off sale 3.2% beer. The City Attorney has been involved in the review of the application. Mike Polla, Special Investigator for the Minnesota Department of Public Safety Alcohol and Gambling Enforcement Division, has advised that a 3.2 beer license does not require state approval. Upon approval of the application by the Council, a Clerk Certificate must be ARDEN HILLS CITY COUNCIL -July 12, 2010 8 7.B. Holiday Station Application for Off Sale 3.2% Beer License (continued) completed and forwarded to the State for their records. Per City Code, Granting of License, the Council "may hold a public hearing relative to the issuance of any license under the provisions of this section." The question before the Council at this time is whether or not they wish to schedule a public hearing on this application or to proceed with approval of the application. Mayor Harpstead stated he would recommend approval of this application. Councilmember Holmes stated she would suggest holding a public hearing because it is important to hear what the public has to say in regards to having a convenience store/gas station selling liquor. Councilmember McClung agreed with Councilmember Holmes. He further stated that any new liquor license applications should have a public hearing so that residents could respond. Councilmember Grant agreed with holding a public hearing for this application so that the residents could be heard and the Council would have a chance to consider this input. City Administrator Klaers stated there had been a compliance check at the Holiday Station for tobacco and they did not pass the first time. MOTION: Mayor Harpstead moved and Councilmember Grant seconded a motion to Table the Holiday Station Application for Off-Sale 3.2%Beer License to a Public Hearin. The motion carried unanimously,(5-o). 8. UNFINISHED BUSINESS A. Planning Case 10-008 -Arden Plaza Development Agreement Amendment No. l City Planner Meagan Beekman stated in June 2009 the Planning Commission and City Council approved a redevelopment application for the Arden Plaza retail center. The approved Master PUD includes the demolition of the existing office pod buildings, subdivision of the parcel into four lots, and the construction of four new buildings. As the project was approved, Building 1 is 14,600 square feet and would be a pharmacy. Building 3 would be attached to Building 1 and would be anticipated to be a retail and/or restaurant use of 4,700 square feet. Building 2 would be a 6,000 square foot single restaurant user, and Building 4 would be 18,000 square feet with a user that was yet to be determined. The entire project would be completed in three phases. At the June 14, 2010, meeting the City Council reviewed a request to amend the approved Master PUD and Final PUD for Phase 1 to allow an alternative development option that would exclude Building 3. The purpose of the applicant's request was to remove or delay the construction of Building 3 in order to move their negotiations with Walgreen's forward. The applicant also requested an extension to the plat filing and building permit deadlines laid out in their development agreement with the City, which is critical to moving the entire redevelopment proposal forward. At the time ARDEN HILLS CITY COUNCIL -July 12, 2010 9 8.A. Planning Case 10-008 -Arden Plaza Development Agreement Amendment 1Vo. 1 (continued) of their review, the City Council voted to table the application citing concerns over the removal of Building 3 and the ramifications this may have on the overall design and site plan of the development. While the applicant continues to work towards a solution that will accommodate the requirements of the City and the needs of their future tenants, they have withdrawn their request for the alternative development option to remove Building 3, and are focusing their request on the timeline extensions only. Since the approval of the Master PUD in July 2009, the developer has been in negotiations with Walgreen's. Given the delays of the project due to market conditions and extended negotiations with Walgreen's, the applicants are requesting a one year extension for filing the Final Plat with the County and for submitting for building permits for each of the three phases. ~ According to the existing development agreement the deadline to pull building permits for Phase I of the Arden Plaza redevelopment in July 13, 2010. If the deadline is not extended, the development agreement will expire, essentially ending the proj ect. The one-year extension will give the developer time to continue their negotiations with Walgreen's or another user for the site. She clarified in order for this request to pass it would require at least a 3/2 vote. Mayor Harpstead stated at the June 14, 2010, meeting the City Council had voted 311 to grant the extensions. At that time it was deemed failed because it had not passed on a 4/5 vote. He asked if the previous motion would then be considered approved. City Planner Beekman stated City Attorney Filla did not reference the June 14, 2010, meeting in his response about tonight's motion. City Attorney Filla had indicated that a 4/5 vote would be required at the previous meeting but this may have been in regards to the other changes being requested at that time related to the PUD amendment. He did indicate a 312 vote would be required for this motion to pass tonight. Councilmember McClung asked for clarification on if Arden Plaza was withdrawing their request to alter the construction plans or if they were still postponing this portion of the request. Mr. Dennis Trooien, VP of Arden Plaza, LLC, stated at this time they are requesting an extension of time and they are continuing to work on the second portion of the request. Community Development Director Lehnhoff stated the City has until August 2, 2010, to make a determination on the construction plan request at this time, The City can request an extension from Arden Plaza LLC for additional time. Councilmember Holden asked if Arden Plaza would be willing to give the City the additional time Mr. Trooien stated they would agree to the extension. MOTION: Councilmember Holden moved and Councilmember Grant seconded a motion to Approve Planning Case 10-008 for Amendment No. 1 of the Arden Plaza Development Agreement Providing a One-Year extension for Submitting for Building Permits for Each of the Three Phases Based on the Findings of Fact ARDEN HILLS CITY COUNCIL -July 12, 2010 10 8.A. Planning Case 1 D-008 -Arden Plaza Development Agreement Amendment 1Vo. 1 (continued) and the Submitted Plans, as Amended by the Six Conditions in the July 12, 2010, Report to the City Council. Councilmember McClung stated he would be voting against this motion at this time. If Arden Plaza were withdrawing their request for the changes to the Master PUD then he could support the extension in time. Councilmember Holden stated she would vote in favor of this motion because it was only referencing the request for the extension of time. She also stated she would not support a change in the Master PUD at this time. Mayor Harpstead clarified the timeline would be extended one year for each of the three phases and Arden Plaza would have until June l~, 2011, to get a building permit for phase I. Councilmember Grant stated he would support an extension of time because economic times have been tough and real estate dealings do take time. Not granting this request would not be in the best interest of the City. The motion was called to a vote. The motion carried (4-1~ Ayes: Mayor Harpstead, Councilmembers Holmes, Grant and Holden Nays: Councilmember McClung B. Appointment of Terry Maurer as the Public Works Director City Administrator Patrick Klaers stated the Personnel Committee interviewed four finalists for the Public Works Director position on June 23, 2010. The Committee held afollow-up meeting on June 28. As a result of these meetings, the Personnel Committee is recommending that the City Council appoint Terry Maurer as the Arden Hills Public Works Director. Terry is a registered Engineer and has extensive civil engineering and municipal public works experience. A background check has been completed by Midwest Government Advisors and the results are satisfactory. The recommendation of the Personnel Committee is to place Terry at Step 6 in his pay grade. Terry is available to start work on either July 26 or August 2. MOTION; Councilmember Holden moved and Councilmember Grant seconded a motion to Approve the Hiring of Terr~Ma_, r as the Arden Hills Public Works Director at Grade 11, Step 6 of the City Compensation Program. The motion carried unanimously (5-0). ~~ 9. COUNCIL COMMENTS AND REQUESTS Councilmember McClung stated he would be out of town August 20 to September 9, 2010. ARDEN HILLS CITY COUNCIL -July 12, 2010 9. Council Comments and Requests (continued) 11 Councilmember Holden stated the sewer lining projects have been coming in significantly under bid. She asked Staff to look into other areas that could possibly be added to the latest bid that was received or the possibility of putting together another proj ect. Mayor Harpstead stated Staff could also look into the possibility of reconstructing a couple of the City's lift stations. Councilmember Grant stated Staff was also going to look into additional grant opportunities such as the Safe Routes to School grant the City received. He asked for an update regarding this. Mayor Harpstead stated the City is waiting for Roseville to add to their engineering capacity in order to pursue additional opportunities. Councilmember Grant requested an update on the trail on Lexington Avenue and County Road E going to Cub Foods. Parks and Recreation Manager Olson stated the Request for Bids for engineering services was sent out today and it would be a couple of weeks before it was brought back to the Council. She also provided the Council with updates on the Safe Routes to School project and the Perry Park Pathway. This project should be finished within the next month, weather permitting. Councilmember Grant asked Staff to talk to the construction workers who parked their vehicles just east of Chadam Avenue. He suggested they move their vehicles further back so as not to block the line of vision for traffic. Councilmember Holden asked if the drainage was better in Valentine Park now that the beavers had been removed. Parks and Recreation Manager Olson stated the drainage was going well. McClung stated the Council had received an e-mail from City Administrator Klaers regarding answers to questions the Council had for the Fire Chief. He asked the Council to review these for a future discussion. Mayor Harpstead reminded Committee members there was an upcoming BBQ and those attending should notify City Planner Beekman. A T).T(1T IR N MOTION: Councilmember Grant moved and Councilmember Holden seconded a motion to adjourn. The motion carried un imously (5-0). ARDEN HILLS CITY CQUNCIL -July 12, 2010 12 Mayor Harpstead adjourned the Regular City Council Meeting at 8:06 p.m. Patrick Klaers City Administrator