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01/19/1976 - 00014906� � � '���i THE MINUTES OF THE REGULAR MEETING OF THE FRIDLEY CITY COUNCIL OF JANUARY 19, 1976 The Regular Meeting of the Fridley City Council of January 19, 1976 was called to order at 7:30 P.M. 6y Mayor Nee. PLE�GE OF ALLEGIANCE. Mayor Nee welcomed those present and invited them to ,7oin the Council in saying the Pledge of allegiance to the Flag. ROLL CALL: MEMBERS PRESENT: MEMBERS ABSENT: APPROVAL OF MINUTES: Councilman Starwalt, Councilman Fitzpatrick, Mayor Nee, Councilman Hamerm k and Councilwoman Kukowski None REGULAR MEETING, JANUARY 5, 1976 Councilwoman Kukowski reouested a change in the minutes of January 5, 1976 Page 5, paragraph 3, second line, change "a year" to "years" MOTION 6y Councilwoman Kukowsk� to approve the Minutes of the Regular Meeting of January 5, 1976, as amended. Seconded by Councilman Starwalt Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously PUBLIC HEARING MEETIPlG, JANUARY 12, 1976 MOTION 6y Councilman Starwalt to approve the minutes of the Public Hearing Meeting of January 12, 1976, as submitted. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. OPEN FORUM, VISITORS: Mayor Nee asked if there was anyone who wished to address the Council durinq the Visitor's Section. There was no response NEW BUSINESS: ORDIPIANCE - THE CONSIDERATION OF FIRST READING OF AN ORDINANCE �r60B FOR REZONING The Public Works Director explained that thts is a request to rezone a portion of the property at 5695 Hackmann Avenue from the extstinq C1-S (local shopping areas) to C-2 (general business areas). This would make the zoning consistent with the present use wM ch is a service station. The service station was zoned properly at one t�me, and the zoning was changed. The present zoning does not allow for improvements to be made on the property, and they would not be able to rebuild. Mayor Nee asked if there are any questions pertaining to this request for rezo m ng, and there was no response. PqOTION by Councilman Starwalt to waive the reading and adopt the first reading of tfie Ordinance. Seconded by Councilman Hamernik. Upon a roll call vote, Councilman Hamernik voted aye, Councilwoman Kukowski voted aye, Councilman Starwalt voted aye, Councilman Fitzpatrick voted aye and Mayor Nee voted aye. The motion carried una m mously. IVING THE MINUTES OF THE PLAPdNING COMMISSION MEEiING DF JANUARY 7. 1976 7. C�NSI�ERATION OF APPEALS COMMISSION MEETING MINUTES OF DECEMBER 30, 1975 A. DEALERS MFG. CO.., 5130 MAIN STREET. METAL COL� STORAGE BUILDING The Pu61ic Works Director explained that this is a re�uest from Dealers Manufacturing Company, 5130 Main Street, to reduce the s�de yard setback from 20 feet to 8 feet to allow for the construction of a cold storage building, re!'�1 .�i 1� � ( , REGULAR COUNCIL MEETING OF JANUFRY 19, 1976 PAGE 2 west of the existing structure. It should be noted that the main intent is for storage of materials presently being stored outside. The existing structure is approximately five feet off the property line. The building was constructed prior to the zoning requirement which require twenty feet side yard be maintained. The Board of Appeals minutes stated that there were no ob,7ections by Reserve Supply Company and Fullerton Metals to the variance request, The Public Works Director further stated that Mr. Goodwin was present to answer any questions we might have concerning the request, and that the Board of Appeals did recommend approval. He said it should also be pointed out that the question was raised at the Board of Appeals meeting as to whether or not this cold storage huilding would be visible from Main street, and the answer was that it would not be visi6le 6ecause of its location. The Public Works Director presented pictures of the property to the Counc�l and po�nted out that it would be very difficult for the pr�psased building to be seen from Main Street. Mayor Nee asked Admi m stration when they have a question such as this, do they talk with the Fire Department. The public Works Director taid that the plans are rev�ewed and they do check with them. In this particular case they did not indicate there were any problems with access to the building as there is plenty of room on the south side. The City Manager stated that the side yard requirement has been increased since the construction of the existing build�ng. He also sa�d that the plans are re- viewed by the Fire Department, and if there are any problems, there definitely is a process whereby, if there are any pro6lems, they would have to be corrected before they approve the plans. Mayor Nee said that unless there were any further questions, a motion would be in order to concur with the Appeals Commission's recommendation MOTION by Councilman Hamernik to concur with the recommendation of the Appeals Commission and grant the variance request. Seconded by Councilwoman Kukowsk�. Upon a voice vote, all voiing aye, Mayor Nee declared the motion carried unanimously. MOTION by Councilwoman Kukowsl:i to receive the minutes of the planning commission meetrng of January 7, 1976. Seconded by Councilman Starwalt. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. Councilman Starwalt said that he does have a question on page 2J of the planning commission minutes. He asked if he does not agree with a portion rientioned in the motion, would it be coming to the Council eventually for discussion He further commented that he seems to think that a few people are pushing for what he would consider lessor standards than he feels as a community we should consider. He said thzt his thoughts pertaining to the wording for Goal #2 would be "Provide for and maintain, without discriminatlon, suitable conventional family ori�antated housing and living environments within the community" Mayor Nee suggested that this be brought up at the conference meeting next week for the Counc�l to discuss and be prepared on the whole spectrum. He told Councilman Starwalt that it might 6e appropriate if he would address this at an early stage to speak to the planning commission, bearing in mind that it would come to the Cuuncil for formal discussion eventually. Mayor Nee further stated that the council could either start to express their- selves at the commission level as a citizen and get a dialogue there, or save it for when it comes to the Council. He said he would like to see the Council members speak to the planning commission and get a playback there, He asked if anyone had any feelings on this sub,7ect. Councilman Fitzpatrick said he believes it should be dtscussed at the conference meeting. � , , � REGULAR COUNCIL MEETING OF JANUARY 19, 1976 � n ry .�� �v PAGE 3 Mayor Nee stated that he was impressed with the process, and that he thought it was qu�te meaningful. He said he does feel that if we have a concern,it might be well to discuss tt at the commission level first, and that this could be discussed in detail at the meeting next week and try to get all of our cor- cerns on the ta61e, whatever they may be. CONSIDERATION OF REQUEST FOR EXTENSION OF RESERVATION OF LIQUOR LICENSE - onoro-r cruonro. The City hlanager explained that the Ctty recetved a letter dated January 5, 1976 pertaining to this request and he was under the impression that someone would be present tonight representing this request. He further commented that there are two choices, one to extend the reservation of a liquor license. There have been similar requests which were extended Or, if the Council would like some input from Mr. Schroer, it could 6e held over and we could request some representation at the next meeting. Mayor Nee said that his personal feeling is to extend the reservation of a liquor license. He said he realizes that it is hard to raise capital. Councilman Starwalt satd that �t was not in his area, but that he felt that thn_ request was presen±ed straight forward and the plans are very definittve, and that he would have no quarrel with the extension being granted Councilman Fttzpatrick asked if it had to be approved before a certatn time The City Manager said that it was approved last year in January, and the request is ,7ust keeping within the one year. He pointed out that the request is merely to give an intent to reserve a license, and not to qrant a ltcense � MOTION by Councilman Hamernik to extend the time limit for one year for the reservation of a liquor license for Robert Schroer. 5econded by Councilwoman Kukowski Upon a voice vote, all voting aye, Mayor Nee de�lared the motion carried unanimously. DERATION OF EXTENSIDN OF CIVIC CENTEk SPACE LEASE WITH ANOKA COl1NTY• The City Manager explained that the City has an existing lease agreement that was signed a little over a year aqo He said that administration feels that it is a reasonable cooperative agreement, and that the City can still niake the soace available to Anoka County at a remunerative figure in the agreement, so we are recommending approval of this agreement. MOTION by Counctlman Fitzpatrick to approve the lease agreement be*ween the City of Fridley and Anoka County for rental of the County Courtroom and the Probatton Office until the end of the 1976 ftscal year Seconded by Councilman Starwalt. Upon a voice vote, all votina aye, f�ayor Nee declared the motion carried unanimously. Mayor Nee explained to the public that this is a cons�derat�on of an agreemeni with Anoka County through which they compensate the C;ty for use of the Council Room as a court room and another room as a probation office. We are compensated at the rate of $5.00 per square foot, which comes to the City for rental from the County in the amount of $8,068.00 per year. � CONSIDERA7IOPJ OF RESULUTION #10-1976 AUTHORIZING THE CHAPlGING OF BUDGET APPROPRIAiIOMS WITHIN THE GENERAL FUND• The Finance Director explained that this P.esolution would put all of the departments into line budgetwise. He said he believed the siyniftcant factor is that revenue for the year 1975 did extend expenditures by $40,OOU. This particulai° Resolution would take certain amounts of mone,� out of reserve and allocate it to departments. As a whole, he said, the year 1975 did operate in the black. Mayor Nee commented that this Resolution reduces the allocations from some departments where it was not used, and added them to other departments. �; (7'i REGULAR COUNCIL MECTING OF JANUARY 19, 1976 PAGE 4 MOTION by Counc�lwoman Kukowski to adopt Resolution #10-1976 authorizing the changing of budget appropriations within the general fund. Seconded hy Council- man Starwalt. Upon a roll call vote, Councilman Starwalt voted aye, Councilman Fitzpatrick voted aye, Mayor Nee voted aye, Councilman Hamernik voted aye, and Councilwoman Kukowski voted aye. The motion carried unan�mously. CONSI�ERATION OF RESOLUTION #11-1976 AUTHORIZING THE CHANGING OF THE 1976 BUDGET APPROPRIATIONS WITHIN THE GENERAL FUND• The City Manager been approved to Resolution in to Council now. explained that basically for 1976 the items have tentatively be expended. He said that administration was brinqing this keep it more current. This is the reason it is before the Mayor Nee said that he did not understand the beach stickers, and the City Manager expla�ned that this is part of the appropriations for the bicentennial activities. This is the C7ty's contribution to that activity. MOTION by Councilman Fitzpatrick to approve Resolution #11-1976 authorizing the changing of the 1976 budget appropriations within the general fund. Seconded by Councilman Starwalt. Upon a roll call vote, Councilman Hamernik voted aye, Councilwoman Kukowski voted aye, Councilman Starwalt voted aye, Councilman Fitz- patrick voted aye and Mayor Nee voted aye. The motion carried unanimously. RESOLUTION #12-1976 - CONSIDERATIOPI OF A RESOLUTION PROVI�ING FOR THE ISSUANCE AND SALE Df 1,550,000 SPECIAL ASSESSMENT FUN� BONDS: The Finance Director explained that this Resolution would authorize the selling of permanent bonds to replace temporary 3 year special assessment bonds that the City has issued in prior years and has purchased itself, rather than being sold on the open market. One of the bond issues has run out and we will have more of the 3 year bonds ex- p�rinq in 1976. The remainder expire in 1977. The $1,550,000 issue would finance the bulk of the financing needed for nine improvement pro,7ects. The origirial costs was $2,263,D00. The difference between this $1,550,000 and $2,263,000 represents prepayments made on assessment pro,7ects. Part of the aro,7ect was paid out of the City's current operatinq budget, if there was some small amounts. Some of the actual installments have been made on these improve- ment pro�ects. Some of these assessment roles were adopted one to three years ago. These roles were oriqinally for ten year periods in the case of street assc;sments and twenty years for water and storm sewers. This represents no increase in assessments in any way, or in taxes. Financing has been provided in prior years for the projects that we are discussing now. This would merely re- place temporary bonds with permanent bonds. Councilman Starwalt asked, in reqard to the temporary bonds we issued, would �t be right to call it a convenience to the City to have issued temporary bonds in that we have used our funds at some tax savings. The Finance Director explained that this is part of it, the other part is that if we had issued permanent bonds initially we may have issued in the neighbor- hood of some $2,000,000 in permanent bonds, not knowing the immediate prepay ments of costs we would have had. By delaying it, we will issue a smaller amount of permanent long term bonds. Councilman Fttzpatrick asked if there was go�ng to be a rating 6efore the bonds are issued, and the Finance D�rector explained thdt this is another item 6efore the Council tonight, to authorize getting the bond rating for this issue. Mr. Bob Ehlers, of Ehlers and Associates, Inc., addressed the Council. He spoke of the problems in New York, and of the problems closer to home in St. Paul, where the school `o�;i°d was attempting to sell short term tax anticipation certi- ficates, and their rating was suspended on these bonds and also their rating of AA on their long term bonds. He explained that it is true, more often than not, the yields on tax exempt bonds are down in the first quarter of the year, and it seems to be following the pattern this year. We would like to have the bond sale at the earliest possible time wh�le we have a favora6le market. Councilman Hamer m k asked, regarding the redemption feature, if we do receive some prepayments from assessments, does the ten year period where we say we cannot redeem these until 1986 have any effect. � ' ' REGULAR COUNCIL MEETING OF JANUARY 19, 1976 G �} � PAGE 5 Mr Ehlers explained that if we have too early a call, this would cause the interest rates to be n�gher. Under the Minnesota law and the Federal Arbitrars regulations this would mean that if interest rates improve eyen further, if you had waited, you may have been able to get a better rate We may advarce refund bonds 6efore the maturity date as far ahead of tha± date as Len years � The City Attorney asked if this rating had to be done each time the City has a bond issue as compared to a stand�ng rate. Mr. Ehlers explained that each time a community issues bonds, it must reapply for a new rating They want to look at the new figures with the new debt and make another ,7udgment. Once having a rating and then selling the bonds and not gettinq the rating, they will simply derate all the 6onds. All of the Fr�dley bonds would be non-rated which �s a reai d�sservice to those who have invested in your bonds, because the value of their 6onds is impaired by havinq it non-rated. However, if in a twelve month period, you again sell 6onds, there is some reduction in fees. Mayor Nee asked Mr Ehlers if he would tell the Council the ef`ect of the ratrng as far as its broadening thz market for honds and 2ts impact. Mr. Ehlers explained that when he first began working for the City in 1960 or 1961, the rating was BA - below investment grade. Since then this rating has been raised in steps from BA to BAA, which gets you into the lowest investment quality, to BAA-1, A and more recently, A-1. This has a material eFfect on the bond sales and the interest costs that you pay. Roughly speaking, he said, the difference between a EAA (lowest investment grade? and a BA (below investment grade}, is 1/2% today. For each step up from that �t reduces your interest costs at 10/100 to 15/100 of a percent. When you think in terms of millions of dollars of bond sales, that amounts to a lot of money � MOTION by Councilwoman Kukowskt to adopt Resolution #12-1976 providing for the issuance and sale of $1,550,OD0 special assessment fund bonds, Seconded by Councilman Starwalt. Upon a roll call vote, Councilman Fitzpatrick voted aye, Mayor Nee voted aye, Councilman Hamernik voted aye, Councilwoman Kukowski voted aye, and Councilman Starwalt voted aye. The motion carried unanimously. RESOLUTION #13-1976 - CONSIDERATION OF A RESOLUTION RETAINING THE SERVICES 0 MOTION by Councilman Fitzpatrick to approve Resolution #13-1976 to retain the serv�ces of Ehlers and Associates, Inc., as financial consultants for the special assessment fund bond pro,7ect of the City. Seconded by Councilwoman Kukowski Upon a vo�ce vote, all voting aye, Mayor Nee declared the motion carried unanimously. Councilman Starwalt sa�d that he had a question. In the accompanying packet from Ehlers and Associates, on page 3, 2nd paragraph from the bottom, where it indtcates revenue bonds shall be increased 6y 20%, my question is, when we say revenue bonds would thts be like industrial development 6onds. Mr Ehlers replied that they Niould no±, th�s would comprehend bonds issued for such things as the hospital where the bonds are er.pected to 6e paid from hospital revenue or electric utilities, or gas works or water works Industrial revenue bonds are a breed by themselves. They are sold on a different basis than mum cipal bonds, which go to compet�tive sales Industrial revenue bonds almost , always end up as a negotiated sale. Councilman Starwalt asked h�r Ehlers if he would descri6e what he means when he talks about a hospital which a portion of the revenues would be tax derived Mr. Ehlers explained that it could be a pure revenue bond where you issue bonds and you make a case that the hospital operations and fees paid by patients will der�ve sufficient cash flow to pay principal and interest on the bonds This gets into a much closer planning process than is involved in issu�nq a bond like we are talking about tonight �', :- �� REGULAR COl1NCIL MEETING OF JANUARY 19, 1976 PAGE 6 Mayor Nee asked if this was still with a tax guarantee, and Mr. Ehlers said yes, however, to give an example, what we call a double barrel revenue bonds is to issue revenue bonds and say they will be paid from revenues and we will prove a case for that. Also, in some cases, we will place the full faith and credit of the mum cipality to the bonds. All in all, he continued, it involves a much more complicated issue than a � straight general obligation revenue bond. On a bond issue where we have the facts readily at hand, as your Finance Director is able to furnish us, we do not have to start digging ourselves, and this reduces our costs and ex- penses. RESOLUTION #14-1976 - CONSIDERATION OF A RESOLUTION APPLYING FOR A MDODY'S MOTION by Councilman Starwalt to approve Resolution #14-1976 to apply for a Moody's Investors Service Bond Rating for $1,550,000 special assessment fund bond issue for the City. Seconded by Councilman Fitzpatrick. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. CLAIMS. No 13095 - 13306 - General and Liquor MOTION by Councilman Fitzpatrick to approve the claims as submitted. Seconded by Councilwoman Kukowski. Upon a voice vote, all voting aye, Mayor Nee de- clared the motion carried unanimously. ESTIMATES Smith, �uster, Feikema, Haskvitz and Casserly Builders Exchange Building Minneapolis, Minnesota 55402 For legal services rendered as Prosecutor for December, 1975 -$1,546.25 Weaver, Talle & Herrick 316 P�s� Main Street Anoka, Minnesota 55303 For legal services rendered as City Attorney for December, 1975 -$1,259 60 MOTION by Councilman Starwalt to approve the estimates as submitted. Seconded by Councilwoman Kukowski. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unar;imously. LICENSES• MOTION by Councilwoman Kukowski to approve licenses as su6mitted. Seconded by Councilman Starwalt. Upon a voice vote, all voting aye, Mayor Nee declared the motion carrted unantmously. ' ISLANDS OF PEACE �ISCUSSION• , Councilwoman Kukowski said that last Wednesday morning the members of the Board of Directors of the Islands of Peace and several members of the City Council went over to the Go�•enor's Office and presented him w�th a certificate of honorary ownership of one square inch of land from the Islands of Peace Foundation. � � C REGULAR COUNCIL MEETING OF JAPIUARY �g, �976 n ,- ,-� PAGE 7 Councilwoman Kukowski said that she would like to encourage, and make a motion, if poss�ble, for the council members, in their own way, purchase one square inch of land from the Island of Peace Foundation. She explained that this would help them start on their long ,7ourney to pay off all debts. She said she feels the City Council should get behind them and encourage the citizens with our contribution and participation. This will def�nitely be a fantastic pro- �ect in the end. The minimum purchase price of land is $10.00, and they will accept any amount of money. She said she would like to make the motion that the City Council mem6ers purchase an honorary square inch of land from the Islands of Peace Foundation. Mayor Nee said that the Council understands the sense in what Councilwoman Kukowski is saying, and that a motion would not be in order AD�OURNMENT: MOTION by Councilwoman Kukowski to adjourn the meeting Seconded by Counctlman Namer m k. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unam mously, and the Regular City Council Meeting of January 14, 1976 ad,7ourned at 8:15 P.M. Respectfully submitted, ��j C,, `f�i'�G� �C���'u//�% Helen Faqin Secretary to the Council Date Approved a/a17� 1 i�liv�j�n-ri,w��� ���� V William �. ee P1ayor