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09/11/1967 - 00020691THE MINUTES OF THE SPECIAL PUBLIC HEARING MEETING OF SEPTEMBER ll, 1967 The Special Public Hearing Meeting of September 11, 1967 was calted to order by Mayor Kirkham at 8:03 P.M, OPEM NG CEREMONY: Mayor Kirkham asked the audience to stand and �oin in saying the Pledge of Allegiance to the Flag. ROLL CALL MEMBERS PRESENT: Kirkham, Lie61, Harris, Samuelson MEMBERS ABSENT: Sheridan ADOPTION OF AGENDA: MOTION by Councilman Harris to adopt the agenda as presented. Seconded by Councilman Samuelson. Upon a voice vote, there being no nays, Mayor Kirkham declared the motion carried. RESOLUTION ,�¢170-1a67 PROVIDING FOR THE SALE OF $1,830,000 SPECIAL ASSESSMENT FUND BONDS: Mr. Ehlers, Financial Consultant, from Ehlers and Associates, Inc., recalled that the Council had postponed the bond sale from July 17, 1g67 until September 11, 1967 because of the number of bond sales to be held at the earlier date. He said the local bond market had improved since that time a�d he did not see anything on the horizon to make a much lower interest rate in the near future. He said that the publicity Fridley had received in a Wall Street Journal article did not do the City a�y good, but may have been overcome by his answer. He said that the mem6ers of the Rating Survey that had visited this area were impressed, but did not raise Fridley's rating at this time. Mr. Ehlers opened and read the following two bids: BID ifl ACCOUNT MANAGER: Juran & Moody, Inc., St. Paul ACCOUNT MEMBERS: Allison-Williams Co., Minneapolis American National Bank 6 Trust Co., St. Paul Dain, Kalman & Co., Inc., Minneapolis First National Bank of St. Paul First National Bank of Minneapolis Merrill Lynch, Pierce Fenner & Smith, Minneapolis Paine, Webber, Jackson & Curtis, Minneapolis Piper, Jaffray & Hopwood, Minneapolis Pohl & Co., Inc , Cincinnati, Ohio E. J. Prescott & Company, Minneapolis Caldwell Phillips, Inc., St. Paul, Minnesota NET INTEREST COST $600,647.50 NET INTEREST RATE 4.52�3 Mr. Ehlers said the bid was accompanied by a Cashier's Check in the amount of $36,600, and the swnmary sheet which would be used as the basis of the bid was as follows. ' � � SPECIAL P�BLIC HEARING MEETING, SEPTEMBER 11, 196% Page 2 ' 4.20% on bonds maturing 1968 to 1977, 4.40% on bonds maturing 197$ to 198z> 4.50% on bonds maturing 1983 to 1988, plus add�tional interest at the rate of 1.50% on all bonds from January 1, 1968 to January 1, 1969 excluding the lst $40,000 maturing January 1, 1968, no premium. � � BID #Z ACCOUNT MANRGER: John Nuveen & Company, Chicago ACCOUNT MEMBERS: Shearson, Hammill & Company, Chicago Francis I. duPont & Company, Chicago Ebin Robertson & Company, Minneapolis Kenower MacArthur & Company, Detroit, Michigan Woodard-Elwood & Company, Minneapolis Channer Newman Securities Company, Chicago NET INTEREST COST $60g,415.00 NET INTEREST RATE 4.5864 Mr. Ehlers said that the bid was accompanied by a Cashier's Check in the amount of $36,600, and the summary was as follows: 4.25% on bonds maturing 1968 to 1974, 4.40% on bonds maturinq 1975 to 19II2, 4.50°jo on bonds maturing 1983 to 1988, plus additi��nal interest at the rate of 1.50% per a�num on $1,790,000 bonds from January l, 1968 to January l, 1969, excluding the lst $40,000, no premium, At this point in the meeting, Mr. Ehlers and his associates, excused them- selves to tabulate the bids. The Public Hearing on Final Assessment Roll - Pro�ect No. 79 was begun, and was interrupted later whe� Mr. Ehlers returned to the meeting with the tabulated bids. Mr. Ehlers said that the best bid was from Juran & Moody, Incorporated of St. Paul at a net interest rate of 4.5203. He said that by postponing the date of sale, they have shortened the issue by three months, and have reduced the interest by possibly 15/100%, so the net savings is $45,370 less interest costs. Councilman Harris questioned a dip on the index chari. Mr Ehlers said that this dip started about the time Fridley had or�ginally scheduled their sale on July 17, 1g67. Mr, Ehlers said that the chart does not tell the whole story as it is a national index, and locally the market had improved very much. Mr. Ehlers read the Council a listing of different bonds thaC had been sold from other Minnesota localities, their ratings, date of sale, and the interesY rate that had been bid. Councilma� Liebl asked what Fridley's rating was. Mr. Ehlers said our rating was Baa. He said that it had been raised to this two years ago and was not a bad rating. He said that they had had rating experts out again in August on the chance of getting an A rating. He said their report showed that Fridley has a very good payout on their debt per capita and there would be a good possi6ility for a raised rating in the future. Mr. Ehlers said he would recommend that the Council accept the 6id, He thought it was competitive, and he thought the City's standing had been improved by postponing the 6ond sale. He said that this would not necessarily have to be for the life of the issue, and there could be an advanced refund if things improved in the future. SPECIAL PUBLIC HEARING MEETING, SEPTEMBER 11, 1967 Page 3 Mayor Kirkham said he was inclined to go ahead with awarding the bid with � the idea that the City could refinance later if they see things are better, but that the money is needed at this time. Councilman Samuelson said he agreed. Councilman Lieb] asked what the cost of refina�cing would be if it were done by the lst of the year. Mr, Ehlers said that they must show a net sav mgs, after all costs, of 1/4 of 1%, and then they could invest the refund in governme�t bonds. MDTION by Councilman Samuelson to adopt Resolution �170-1967 providing for the sale of $1,830,000 Spec�al Assessment Fund Bonds to Juran & Moody, Inc., St. Paul, Minnesota at a net interest cost of $600,647.50 and a net interest rate of 4.5203. Seconded by Councilman Harris. Upon a voice vote, there being no nays, Mayor Kirkham declared the motion carried. PUBLIC HEARING ON FINAL ASSESSMENT ROLL - SANITARY SEWER, WATER AND STORM SEWER PROJECT N0, 79: The City Manager read the Notice of Hearing, and gave a brief summary of the pro�ect. He explained that there were several parts included in this pro�ect which were not really related, but had been put together to make a larger pro�ect. He also recommended that the assessment not be adopted for Terry's Addition at this time, because there is more work going in next year and these costs can be included and all assessed when the work is completed. Mayor Kirkham said that each part of the hearing would be taken separately. COMMERCE PARK: , Mayor Kirkham asked if there was anyone in the audience interested in this area of the pro�ect. There was no answer. SWANSTROM'S COURT: Mayor Kirkham asked if there was anyone in the audience interested in this area of the pro�ect. There was no answer. TERRY'S ADDITION: Mayor Kirkham asked if there was a�yone in the audience interested in this area of the pro�ect. There was no answer. BACON DRIVE: Mayor Kirkham asked if there was anyone in the audience interested in this area of the pro�ect. There was no answer. RIVERVIEW TERRACE & MISSISSIPPI PLACE: Mr. Walter Luckow, 646D East River Road, asked if this cost was �ust for storm sewer or if it included sanrtary sewer also. Mayor Kirkham quoted the price as $3.75 per 100 square feet, and said that this was just for storm sewer. ' Councilman Liebl explained that the reason the Council decided to make one pro�ect and tie the different areas together was to keep the price down. Mr. Luckow gave the Council his Lot and Block and was told his assessment would be $450.00. ELY AND DOVER STREETS IN 500 BLOCK AREA: Mr. Keith Gage, 531 Dover Street Northeast, said he felt that Councilman SPECIAL PUBLIC HEARING MEETING, SEPTEMBER 11, 1967 Page 4 � Samuelson and the City Engineer owed an explanation to a lot of the people in this area. He said that the people had h�ld a meeting at which Council- man Samuelson and the City Engineer were present and he asked them to explain the results of the meeting a�d the results of the assessment. Councilman Samuelson said that basically it had been resolved that the assessment would be divided equally among all the participating property owners. He said that after the meeting he had received a call that one or two property owners had withdrawn from the idea of an equal participation assessment, and he said he recalled that at the time he had said that the assessment could not go through on the equal basis unless all the people would participate on that basis. Mr. Gage asked Councilman Samuelson if he had looked this area over Council- man Samuelson said that he had, and he realized they had a low spot. Mr. Gage explained that they felt this should be assessed on an equal basis because of the following reasons: Family safety - he said they all needed the access, as there is only one road going in. Home protection - for fire engines, mail delivery, garbage pick-up, etc. That since the homes have been built, the lots have been changed to conform to their individual sites. He said they feel that assessing on an equal basis was the fairest for all. Mr. Gage said they were not complaining because the people d�d not want the storm sewer, they all agreed it had to be done, but if one or two owners dissented from the equal participation, exceptions should be made, and the ma�ority should rule. � Councilman Samuelson said he had brought the petition in and had said that two or three of the people had withdrawn, and he had been advised by the legal staff that if there is not 100% participation, they could not assess thein on an equal basis, as they could lose such a decision in court. Mr, Gage said that the dissenters have a legitimate case, and he could agree they be given a lesser proportion of the cost, but the remaining property owners have all agreed on a proportionate basis. He said that the people on the south of Dover Street need the road to go to and from work, so they will benefit and should participate. Mr. Gage said they had figured the assessment and the cost would be 5133 if it were assessed on an equal basis Mayor Kirkham said that the method of assessing for storm sewer is dictated 6y State Statute, and is assessed by the square foot against all benefiting property, and the only other possibility would be if there was mutual consent of all the people in the area. He said that as long as they have dissenters, the Cou�cil is bound by State Statute, unless they can solve this among them- selves. Mr. Gage asked for a definition of the word "benefiting". Mayor Kirkham said this would apply to all property within the drainage district as mapped out by the Engineering Department. Mr. Gage asked if this would include services extended by the City, such as the needed access Mayor Kirkham said that this would not have anything to do �aith the storm sewer. He said that the assessment is concerned only with the drainage district, and whether it would allow another access or not has no bearing. The Consulting Engineer said that they do not take into consideration any other benef�ts there may be, but are only concerned about the drainage area itself The � property owners went over the map of the area with the Consulting Engineer. The Public Hearing was interrupted at this point for the report on che Bond Sale by Mr. Ehlers. During this period the property owners were discussing the 500 Block of Ely and Dover Streets with the Consulting Engineer. After the Council had awarded the Special Assessment Fund Bonds to Juran & Moody, Inc., the Public Hearing on WS � SS �79 continued; SPECIAL PUBLIC HEARING MEETING, SEPTEMBER 11, 1967 Page 5 The Consulting Engineer said that at the night of the Improvement Hearing, � an ob�ection had been raised to the 6oundary lines and the City had agreed to resurvey, and according to the resurvey the property owners had been partially right and the district had been readjusted to include another property. He said there had been some things that did not show in the original survey, and in some cases, the difference was only 1/10 of a foot. He said that perhaps they could use the rationale that everything back to the building line should have 6een built to drain to the street according to ordinance. Mayor Kirkham said he doubted that this could be put in the pro�ect now that the hearing has been held and the pro�ect has been put in. The Acting City Attorney said that the Council would have to start over again with another hearing and another roll. Another visitor to the Council Meeting asked if they could petition for another hearing to bring in the people to voice ob�ections, if any. The visitor said that the people i� the area under question were included under the original proposal and had signed the petition. The Consulting Engineer said that the people south of Dover had been notified of the Hearing as the larger area had been included since there was a question. He pointed out that the additional property owners would only pay about $200 of the total assessment and would not effect these people's assessments by more than $5 at the most Mr. Gage asked if the owners could petition for special consideration in this case as these other owners receive protection of their property and their valuation is upheld. Mayor Kirkham said that the Council could not do that in this regard, as it must assess just those that have direct benefit of the storm sewer. The Acting City Attorney said that over the years, the City has assessed storm sewer on one basis, and if they were to attempt to change the policy now, they would have to 6e on very solid ' ground, Mayor Kirkham said that the Council could continue the hearing,and give the property owners time to resolve this among themselves. The Acting City Attorney told the people that the Council could consent to a binding contract signed 6y all parties to the assessment, but if one property owner should decide not to pay, the resi of the property owners would have to bring action for breach of contract, and the City would probably have to change their policy and go back to this present formula. He said this would all have to be ironed out before,the public hearing was closed. The Acting Crty Attorney suggested they appoint one person to represent the group. He said he would like to research the case law on this more thoroughly, and could report to their representative if he would come to their office in two or three days. Another visitor to the Council Meeting said that there are some lots owned by Anoka County. The Acting City Attorney said that they would need the consent of the County also. Councilman Harris said he thought the County would agree. Mayor Kirkham said that the Council could assess everyone, and the County could pay their assessment, and the people could still bind together with the rest of the assessment. Mr. Gage said he thought it was obvious that they would not get everyone to sign a contract as, besides the County, there are several out-of-town residents also. A visitor to the Council Meeting said that his assessment would be less if it could be surveyed again as the land has been changed. Councilman Harris � explained that he could appeal his assessment if he wanted to. He also explained that every part of Fridley is in one storm sewer district or another, and he would pay for storm sewer at some time or other. The Consulting Engineer said that the storm sewer costs in this area are as low as they have been for many years in Fridley. He said that this will be �ust over $2.00 per 100 square feet, and they have bee� running up to $4.00 per 100 square feet. Councilman Liebl pointed out that the assessment SPECIAL PUBLIC HEARING MEETING, SEPTEMBER 11, 1967 Page 6 � is as low as it is because of the larger area Councilman Harn s pointed out the large 5-C Pro�ect area on the map and said that this had been assessed at $3.05, and would have been higher except for a previous assess- ment. The City Manager explained they could pay the assessment with no interest anytime during the first 30 days, and explained the interest charge and the way it would 6e set up after that time. Mr. John Wriqht, 563 Ely Street Northeast, said he was glad to see the storm sewer go in but he was not satisfied with the explanation the City Engineer and Councilman Samuelson had given. He said �hat many people were bitter Councilman Liebl said he would suggest that the Council advise the City Attorney to give these people assistance in drawing up a contract, otherwise the Council can only go according to their ordinances Mayor Kirkham said that the Council mu,t decide to either accept the roll as it is or continue the hearing to give the people time to work this out among themselves. Mr. Gage said he would withdraw his request for equal participation because, as the City Attorney has pointed out, with the dissenters it would be a problem to get everyone to sign a contract, but if someone else wanted to take it over they cauld. Councilman Harris said that he would suggest that unless they feel they can work out something concrete, they accept the roll as it is. He said that the cost of calling another hearing would be charged to the pro�ect, which would make it that much higher. Mr. John Wright said he was willing to accept this roll if the rest were willing, but he felt iL should have been explai�ed better , STDRM SEWER 5 COSTS: Mayor Kirkham asked if there was anyone in the audience interested in this item. There was no answer. The Council decided that ihe funds for the work done under Pro�ect #79 which is assignable to Pro�ect No. 5 should be transferred to Pro�ect 5. MOTION 6y Councilman Liebl to close the Final Assessment Hearin� on SW & SS /�79. Seconded by Councilman Samuelson Upon a voice vote, there 6eing no nays, Mayor Kirkham declared the public hearing closed at g:35 P.M. MOTION 6y Councilman Harris to adopt Resolution �171-1967 confirming the assessment roll for SW & SS $79, deleting from Lhe resolution Terry's Addition until that pro�ect is completed, and transferring the funds in the amount of $4,426.75 from Pro�ect �79 to Storm Sewer Pro�ect �5 as outlined in the Finance Director's memorandum dated August 25, 1967 Seconded by Councilman Samuelson. Upon a voice vote, there being no nays, Mayor Kirkham declared the motion carried. CONSIDERATION DF BUILDING PERMIT - RONALD SMITH, 7786 BEECH STREET NOR7HEAST: � Councilman Harris said he had looked at this property and asked 1f the permit is for an addition to the original building. Mr. Smith said this was correct, and showed the Council photographs of the building. He said the addition would be 84' x 26'. Councilman Harris asked if Mr. Smith would need a variance for the 8' setback. The City Engineer explained that there is no setback require- ment on industrial zoning, and this will line up w�th existing buildings. Councilman Samuelson said he felt that in the Future, 78th Avenue should be SPECIAL PUBLIC HEARING MEETING, SEPTEMBER 11, 1967 Page 7 vacated, leav rng a utility easement. The City Engineer said that 10 parking spaces are required on the lot, but they will leave it up to Mr. Smith where he puts them. MOTION by Councilman Harris to concur with the Building Standards - Design Control Subcommittee and grant the building permit provided that the 10 off- street parking places are gravel. Seconded by Councilman Samuelson. Upon a voice vote, there being no nays, Mayor Kirkham declared the motion carried. LIEBL: FUTURE CONSTRUCTION AND COMMUNICATIDN. Councilman Liebl showed the Council a picture of an apartment complex that a builder is interested in building in the 3rd Ward. He said the 6uilder is planning a 4-plex and an 8-plex and will be coming in in the future to ask for a building permit Councilman Liebl said he had received a letter from the owner of the apartment building at 6021 Main Street regarding the parking pro6lem. He said that the owner is willing to cooperate but would like some guidelines on how to solve the problem. He suggested that possibly the City Engineer could shed some light on what the owner could do. F1RE INSPECTION CHIEF�, EMERGENCY REPORTING UN1T Chief Aldrich said that the console for the reporting unit will be ready in the next two weeks, and he wanted the Council to be aware that there will be an additional charge for moving it to the new building at a later date. He said the cost of moving it will be approximately $250.00. Chief Aldrich said that there has been some discussion about a change in the liquor operation in the City, and originally �t had been discussed that the liquor stores' alarm systems would be controlled by the new unit, and if this is to be done, some notification should be given to the company giving this service at present. Councilman Samuelson said that this could be done, and the City could investigate the cost of buying the existing system. Councilman Harris suggested the Administration find out the cost of terminating the service and the cost of buying the existing systems. COMMUNICATION: JOHN DUNPHY: REGARDING PARK AND RECREATION COMMISSION AS A SUBCOMMITTEE OF THE PLANNING COMMISSION: Councilman Harris suggested that Mr. John Dunphy be sent a copy of the new ordinance regarding the reorganization of the Planning Commission. ADJOURNMENT: There 6eing no further business, Mayor Kirkham declared the meeting ad�ourned at 9:�5 P.Mo Respectfully submitted, � , �/ j �/ � o'L:'`cir � . � t,.� �. �� u�—:—, --�--�� `f _ i Mar Lu Serom � v � � �C � 1�' �-� a��� �ti. Secretary to the Counci 1 �' e" y'` t' � M OR - JACK 0, KIRKHAM ' , '