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03/31/1969 - 00019617� � � �-� THE NIINUTES OF THE SPECIAL COUNCIL MEETING OF MAACH 31� 1969 � Mayor Kirkham called the Special Counoil Meeting of March 31, 1969 to order at 7.00 P.M. PLEDGE OF ALLEGIANCE Mayor Kirkham requested the Council and audience rise and �oin the Council in saying the Pledge of Allegiance to the Flag. ROLL CALL: MEMBERS PRESENT: Kirkham, Harris, Liebl, Samuelson, Sheridan MEMSERS ABSENT: None ADOPTION OF AGENDA: Mayor Kirkham said that there were three items to add to the Agenda which were: #5. Hiring of Street Maintenance Man �6. Resolution Regarding Condemnation of Right of Way on 73rd Avenue Between Central Avenue and T.H. #65 #7• FMC Request for Waiver of REC Charges for Proposed Engineering Building MOTION by Councilman Harris to adopt Agenda as amended. Seconded by Counczlman ' Liebl. Upon a voice vote, all voting aye, Mayor Kirkham declared the mota.on carried. DISCUSSION AND RESOLUTION REGARDING PROPOSED LEGISLATION FOR FRIDLEY FIRE RELIEF ASSOCIATION The Fridley Fire Department was in attendance for this item. The City Attorney read the Resolution he had drafted on the proposed Legislation for the Firemens' Relief Association. The Finance Director said that it was his understanding that the bi11 has been changed, but he said that he had not seen the final amendment. Councilman Liebl asked the Finance Director who drew up the plans referred to in his memorandum. The Finance Director answered that the four plans appearing are plans used by other municipalities. Councilman Harris said that P1an #2 and #4 do not designate any age limits. Mr. Carl Moen, Fridley Representative, said that there is a bill which has been passed through the House and is being consiciered by the Senate now that would super�ede any plan the City of Fridley might set up, unless the City would wish to include more benefits than the bill covers. He said that he had sent a copy of the bill #1829 to Mr. Don Savelkoul, Attorney for the Volunteer Firemens' Relief Association. The City Attorney asked it this would apply to all class cities. Mr. Moen said that was his understanding. Councilman Harris said that on this basis, he would like to see the Resolution passed, then see if the bill passes � through the Senate, before discussion of the plans. Mr. Moen said that he thought that the bill should pass through the Senate with no trouble, as it is a local Legislatzve bill. RESOLUTION #48-1969 - RESOLUTION REGARDING PROPOSED LEGISLATIVE CHANGE IN FIREMENS' PENSION LEGISLATION• -i� �-, �� ,� � � � SPECIAL COUNCIL MEETING OF MARCH 31, 1969 MOTION by Councilman HaYris to adopt Resolution #48-1969. PAGE 2 Councilman Liebl said as there are four plans, if the City were to do something additional�he asked the Fire Department which of the foux plans they would like, bearing in mind that the City has ot�ly so much money to spend. The President of the Firemens' Relief Association showed a copy of the bill referred to k�y Mr. Moen to the City Attorney. He said that the Assoclation would have selfish motives, of course, and would prefer the fully escalated plan as this would give the best coverage to protect against inflation. Based on the figures from Mr. Frank Moulton, Chairman, Legislative Retirement Study Commission, it seems that the City could not afford this plan. The President of the Association said that the actuaria,l study they had made did not give the information they desired relative to the cost of the plan. Councilman Lieb1 asked how the Association was covered now. The Pzesident o£ the Association said that the volunteers are covered at a rate of $40 a montih for 20 years service after the retirement age of 50. For dependents and orphans it is $21 a month until 18 years of age. For widows, the present plan gives $52 to $63 per month. FIe said that for the paid men, he is not sure how they are classified. Some authorities say that Fridley is a second class city, some say not. He said in 1967 they drew up a bill which would provide some options. One point Mr. Moult�ai made was .tn regard to the 4/5 vote requi�ed by Council. He said that in this bill, the by-laws had to be rati- fied by the Council and a 4/5 vote was required to effect the plan. He said that he felt this was an a.mportant point. He pointed out that 6o is the amount the employees pay now, and this percentage varies from 0% up to 6o wrthin the various municipalities. Councilman Liebl asked the Association if they would be willing to pay some on their own. The Presi.dent of the Association said that they would be required to pay 6� 6y this proposed 6i11_ Councilman Lieb1 said that he felt that Plan #4 (the fully esculated plan) was too expensive, but that Plan #3 calling for 20o of salary paid by the City and 6% paid by the employee, with retirement at the age of 55 with 20 years of service, SOo of average salary for the last 5 years of employment, would be about average and a good compromise. The President of the Association pointed out that all the optional plans require 20 years of service and retirement at the age of 50. He said that he has been told that the entry age into a plan is quite a factor in determining the cost of the plan. Councilman Harris pointeci out that Plan #3 actually incorporates an escalator clause. The President of the Association agreed and said that it was felt by the Association that this would be a suitable compromise, although it was felt that �his should be studied more. He said that under Plan #3 (the Proposed Bill) the retirement pay' is calibrated on the last five years of ser- vice rather than an average of the years of service. He 5aid tbat raising the pay of the firemen would not raise the pay of the people drawing pension bene- fits. Councilman Samuelson asked in regard to the escalator clause, ?f the pay was increased for volunteers, would the retired volunteer pay increase. The President of the Association said yes� there would be a percentage of increase. The City Attorney asked if, after the material from Mr. Moulton was received, the acttxarial study was determined to be sound. The President of the Asso- ciation said the acturial study did not tell if it was sound, it only told the cost of having a plan. The Finance Director added that the figures from Mr. � Moulton indicated that if 26% of the employees salary were to be put into the fund, it would make it sound. The City Attorney asked if that takes into consideration the amount of money already in the fund. The Finance Director said yes. The City Attorney wondered if the Resolution was worded correctly and if the Council understood the total cost Lo the City and to the Employees. � ,�� � SPECIAL COUN'CIL MEETING OF MARCH 31, 1969 PAGE 3 Councilman Sheridan asked what the present mill levy was for the Firemens' ' Relief Association. The Finanne Director said that it was one mill. Council- man Sheridan said that a rule of thumb he has used is that the employee pays 1/3 of the cost and the employer pays 2/3. Sy applying this rule to tlze proposed bill, 6o would be paid by the employee, and 3 X 6 would be 18%. 18o added to the 6o would be 24a, which is quite close to the 26� proposed in the bill. The President of the Association said that he would like to have the Resolution passed, as if there is none, he would be afraid the Senate would not act favorably on this bill. He said that the Association felt that administration should come from the local level, and if the bill does not pass, it might mean State control, which they would be against, �udging by the example of the PERA system. If more men were added to the Department, there would be increased costs, but along with the increased cost, there would be an increased tax base. Councilman Liebl commented that according to his figuring, under the proposed bill, the City's share would be about 2 mills, then the Firemens' Relief Association would pay 1/3 of that cost. The Pres�dent of the Association said that estimate might be slightly high. Using 260 of the salary would figure out to be about $27,000 total for the next year or two, which would be about 250. The City Attorney wondered if the Resolution should not be re-worded slightly to incorporate the idea that the Council acknowledges the fact that they realize what the cost of the pension spstem is and agree that they are willing to pay ' the cost. This is what was requested by Senator Grieg. Councilman Sheridan said that he was in agreement with the President of the Association in wanting control to be by the City rather than by the State. AMENDMENT TO MOTION by Councilman Sheridan to add to the Resolution "That the Council realizes what the cost of the pension system is and agree that they are willing to pay the cost". Secondad by Councilman Liebl. Upon a voice vote, all voting aye, Mayor Kirkham declared the motion carried un- animously. THE MOTION by Councilman Harris to adopt Resolution #48-1969 was seconded by Councilman Samuelson. Upon a voice vote, all voting aye, Mayor Kirkham de- clared the motion carried unanimously. AT THIS POINT COUNCILMAN HARRIS HAD TO LEAVE THE MEETING. Councilman Liebl asked if any maximum mill rate could be built into this Resolution. The City Attorney said that it was his understanding that any specific plan would have to be approved by the Council and if it was felt to be too expensive, they could agree not to participate. The Finance Director said that this was not his understanding. He said that he thought that if the bill passes, the minimum standards would be set and the Council would not have anything to do with it, other than to provide additional benefits if they wished. Councilman Liebl said that he believed that Plan #3 would comply wzth ' the minimum criteria under consideration by the Senate. The City Manager pointed out that by the Amendment, the Council is agreeing to pay an open end plan and they do not know the costs. Councilman Liebl agreed and wondered if the words "not to exceed two mills" should not be added. The City Attorney said that this could be added to the bill, that the Council agrees to pay � C � �� SPECIAL COUNCIL MEETING OF MARCH 31, 1969 PAGE 4 � not in exce5s of two mills. The Finance Director said that what Senator Grieg wi11 say is, this would be fine now, but what about when there are more men addecl to the force. Mayor Ka.rkham said that the way the Resolution reads now, might find the City with a never-ending increase in mill levy. Counc�.l- man Sheridan agreed. The President of the Association said that before the bill will pass the Senate, this Resolution has to be passed. If it is passed, the by-laws will not become effeotive until Council approves them by a 4/5 vote. Then the Firemens' Relief Association will have to axrive at a plan for paying bene- fits within the provisions o£ the bill, then this would be submitted to the Council. The final control would sest with the Council. He explained that this bill is only an enabling law. He said that what Senator Grieg would like to know at this time is if the Council will go on record as supporting the proposed Legislation. MOTION by Councilman Sheridan to reconsider and re-adopt Resolution #48-1969. MOTION by Councilman Sheridan to strike the Amendment and add this Amendment in its place "That the Fridley City Council understands the costs and goes on record in support of proposed Legislation for the Fridley Firemens' Relief Association". Seoonded by Councilman Samuelson. IIpon a voice vote, all voting aye, Mayor Kirkham declared the motion carried. � THE MOTION to adopt Resolution #48-1969 was seconded by Councilman Samuelson IIpon a voice vote, all votinq aye, Mayor Kirkham declared the motion carried_ DISCUSSION REGARDING RE50LUTION ON MINNESOTA CHAMBER OF COMMERCE'S SPLIT LIOUOR RECOMMENDED CHANGE IN HOUSE AMENDMENT TO SENATE FILE #271: The City Manager said that this information from the Minnesota ChamY�ers of Commerce was received bp his office indicating that the municipal licenses would be considered the same as private licenses. Mayor Kirkham added that this amendment was proposed, as Senator Blatz of Bloomington had ob7ected to the amendment placed on his bill in the House, as it was not germain. This proposed amendment would be germain, as it applies to crties of the lst, 2nd, 3rd, and 4th class, and will be added in place of the other amendment. He said that it was most important to get something through. This would not take anything away from the present system. Senator Gra.eg would like to suppori this, and Mayor Kirkham said in his opinion, he thought this was fine Councilman Samuelson added that the Chambers of Commerce are ac�ive lobbyists. Councilman Liebl said that he had no ob�ection. RESOLUTION #49-1969 - RESOLUTION REGARDING PROPOSED AMENDMENT TO SENATE FILL #271 REGARDING SPLIT LIQUOR: MOTION by Councilman Samuelson to adopt Resolution #49-1969 endorsing Minnesota Chambers of Commerce Amendment to S.F. #271. 5econded by Councilman Sheridan. Upon a voice wte, all voting aye, Mayor Kirkham declared the motion carried. � CONSIDERATION OF SPECIAL USE PERMIT FOR HOLIDAY VILLAGE F012 OPERATION OF THEIR GARDEN STORE The City Manager said that the frame work is sti11 up as they were granted perma.ssion by the Council to leave it. Now they are requesting a speoial use permit to get ready for their spring business. This is along University Avenue, on the east side of their store. �P�F�� SPECIAL GOUNCIL MEETING OF MARCH 31, 1969 PAGE 5 MOTION by Councilman Liebl to grant a special use permit to Holiday Village North for the use of the Garden Store. Seconded by Councilman Samuelson. Upon a voice vote, all voting aye, Mayor Kirkham declared the motion carried. LICENSE: MOTION by Councilman Liebl to approve the following license� General Contractor Approved By C.F. Haglin & Sons Co. Sy• R.A. Roberts NEW Bt�ilding Inspector 4005 West 65th Street Minneapolis, Minn. Seconded by Councilman Samuelson. Upon a voice vote, all voting aye, Mayor Kirkham declared the motion carried. APPOINTMENT: Name Salary Position Mr. Joseph G.�onsior $606 per Month Stxeet Maintenance Man 6210 6th Street N.E. Fridley, Minnesota MOTION by Councilman Samuelson to approve the appointment of Mr. Joseph Gonsior to the Street Maintenance Department at $606 per month. Seconded by Councilman Liebl. Upon a voice vote, all voting aye, Mayor Kirkham declared the motion carried. RESOLUTION #50-1969 - RESOLUTION AUTHORIZING THE ACQUISITION OE ADDITIONAL RIGHT OF WAY FOR 73RD AVENUE BETWEEN CENTRAL AVENUE AND T.H. #65: MOTION by Councilman Samuelson to adopt Resolution #50-1969. Seconded by Councilman Lieb1, Upon a voice vote, Kirkham, Samuelson, Liebl voting aye, Sheridan abstaining, Mayor Kirkham declared the motion carried, FMC REQUEST FOR WAIVER OF REC CHARGES FOR PROPOSED ADDITION TO BUILDING: The City Manager explained that this request is for a waiver of REC charges placed on all new buildings or additions to buildings by Resolution #61-1967. They feel that they should be exempted as their sewage does not go into the North Suburban Sanitary Sewer System, but into the Minneapolis system under an agreement dated November 18, 1940, and ask that any charges in connection with the N.S.S.S.D System be cieferred until such system is actually used at this locata.on. Councilman Liebl asked if they were to hook up in the future, would they pay these charges. The City Attorney said yes. Councilman Liebl said, with this understanding, the request should be granted. The City Manager said that Councilman Harris had indicated before the Meeting that the waiver of charges is not because of the additional bnilding being a part of the complex, but is based on the agreement by FMC with the City of Minneapolis for capacity, and that if some time in the future FMC uses Fridley capacity, agreed upon between Fridley and Minneapolis or FMC utilizes N.S.S.S.D. capacity, REC charges ' � ' ' � � SPECIAL COUNCIL MEETING OF MARCH 31, 19b9 would then be required from FMC. PAGE 6 MOTION by Councilman Liebl to grant the request of FMC to waive the REC charges for their new Engineering building with the understanding that the waiver is not because of the addiiional building being part of the complex, but is based on the agreement by FMC with the City of Minneapolis for capa- city, and that if some time in the futux'e, FMC uses Fx�.dley capacrty agreed upon between Fridlep and MinneapoLis or FMC utilizes N.S.5.S.D. capacity, REC charges would then be required from FMC. Seconded by Councilman Samuel- son. Upon a voice vote, all voting aye, Mayor Kirkham declared the motaon carried. CONSIDERATION OF AGREEMENT WITH SPRING LAKE PARK FOR TEMPORARY CONNECTION TO THEIR LINE FOR BOB'S PRODUCE RANCH The City Engineer showed a map of the area on the screen, and explained that Council authorized a temporary connection to N.S.S.S_D. for Bob'5 Produce Ranch by Resolution #33-1969. The N.S.S.S.D. has laid this request aside and indicated that they would like an agreement to be dsawn up with Spring Lake Park for the use of their 18" l,ine, the City to submit a plan to serve all this area, and indicate whether the connection is to be temporary or perma- nent. He pointed out that the Council has already adopted a plan to serve this area. He suggested that if the owner would agree to hook up to N.S.S.S.D near University Avenue on a temporaxy basis, then later, when the City system is laid out the connection to N.S.S.S.D. can be removed and connected to the City system. Councilman Liebl asked whether the North Suburban Sanitary Sewer District is ob7ecting to the procedure ox the hook up. The City Engineer explained that this line was designed only to serve Spring Lake Park, and would require an agreement £or its use. MOTION by Councilman Liebl to authorize the City Engineer and the City Attorney to work out an agreement with Spring Lake Park for the use of thRir line on a temporary basis. Seconded by Councilman Sheridan. Upon a voice vote, all voting aye, Mayor Kirkham declared the motion carried. SPEED LIMIT ON EAST RIVER ROAD: Councilman Samuelson said that he had noticed that the speed limit on East River Road has been reduced from 45 MPH to 40 MPH. He fel�. that the Police Department should be alerted to be on the look-out for speeders. Councilman Sheridan added that perhaps the Police Department should �ust give warning tickets for a time until people get accustomed to the reduction. He suggested that the press could make people aware of the reduction also. Councilman Liebl saa.d that a thank you should go to the County for their help a.n qetting the speed reduced. ADJOURNMENT: MOTION by Councilman Liebl to ad�ourn the Meeting. Seconded by Councilman Samu- elson. Upon a voice vote, all voting aye, Mayor Kirkham declared the Special Council Pleeting of March 31, 1969 adjourned at 8:15 P_M. �R� pectfully submitted, ,��,C�% f�:G2�t�-(�%/ Juel Mercer Secretary to the City Council � � I� d �� II � E�,� �Ls= �� C �-� �< < � � . ` Jack 0. Kirkham Mayor