03/03/1980 - 00013589a�.
THE MINUTES OF THE REGULAR MEETING DF THE FRIDLEY CITY COUNCIL OF
MARCH 3, 1980
The Regular Meeting of the Fridley City Council was called to order at 7:38
p.m. by Mayor Nee
PLEDGE OF ALLEGIANCE.
Mayor Nee led the Council and audience in the Pledge of Allegiance to the
Flag.
ROLL CALL
MEMBERS PRESENT: Councilman Barnette, Councilman Schneider,
Mayor Nee, Counc�lwoman Moses and Counctlman
Fitzpatrick
MEMBERS ABSENT: None
APPROVAL DF MINUTES:
REGULAR MEETING, FEBRUARY 25, 1980
MOTION by Councilman Schneider to approve the minutes as presented. Seconded
by Councilwoman Moses. Upon a voice vote, all voting aye, Mayor Nee declared
the motion carried unanimously.
ADOPTION OF AGENDA:
The following item was added to the agenda °Consideration of a Resolution
to the Legislature Re: F�re Pens�on Association".
MOTION by Councilman Fitzpatrtck to adopt the agenda with the above addition.
Seconded by Councilwoman Moses, Upon a vo�ce vote, all voting aye, P1ayor Nee
declared the motion carried unanimously.
OPEN FORUM. UISITORS�
Mrs. Valerie Nybo, 6571 Channel Road, Apt. 9, appeared before the Council
regard�ng her concern on the rent increases tn her apartment building. Mrs.
Nybo stated she and the residents of her bui7ding received a letter on February
27, 1980 not�fying them of a 30% increase in their rent, effect�ve April 1, 1980.
She stated the notice �mplied the owners were going to upgrade the bui]din9, but
she didn't feel it was fair to ra�se the rent that much without the improvements.
Mrs. Nybo stated their rent would be ratsed from �220/month to $290/month. She
felt the tenants should have been given more notice regarding the increase or that
the increase should have been on a gradual basis.
Mrs. Nybo stated they
they wanted to remain
not�ce when moving.
had only February 28 and 29 to make a decis�on whether
in the apartment, as they are requ�red to g�ve a 30 day
Mrs. Nybo presented a list of persons who also had voiced concern over the
increase in thetr rents.
Mayor Nee pointed out the City doesn't have any ordinances beyond what is
covered in the State law to shelter tenants and there is no rental control
ordinance rn Fr�dley.
Mr. Herrick, City Attorney, stated there is a State statute concerning pro-
tection of rents, but didn't feel it covered the amount of rent to be charged
He felt the Counc�l wouldn't have any control over this, but the sub�ect could
be researched, if the Council so desired.
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REGULAR MEETING OF MARCH 3, 1980
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Mr. Herrick questioned if they had checked with the Tenant's U m on in
Minneapolis.
Mrs. Nybo stated they had been told by the Tenant's Un�on that the owner
can legally ratse the rents, however, they �ust wanted more time to make
other arrangements. She stated everyone in the building received increases
ranging from $50 to $80/month and felt 6ecause of the large increase, the
� tenants should have been gtven more not�ce.
Mayor Nee felt it would be mtsleading to say the Council could do anything
about the increase.
Councilman Schneider stated he is very sympaihic, however, it has been pointed
out, the increase is legal.
Counc�lwoman Moses stated she was sympathic to their cause because of the
enormous increase, but �f the owners are within their r�ghts, she didn't know
what could be done.
Counctiman Fitzpatrick felt his concern was, even though the tenants were
g�ven 30 days notice before the increase went into effect, they would need
a 60 day not�ce in order to enable them to give the otaners a 30 day notice
if they were leaving the building and didn't want to pay the higher rent.
Mayor Nee stated he would be willing to contact the owners or their representa-
t�ve, 6ut didn't feel it would change the situation
OLD BUSINESS•
CONSIDERATION OF APPOINTMENT TO CABLE TELEVISION COMMISSION (TABLED 2/25/80)�
Counc�lman Barnette stated he had talked with Bo6 Peterson to determine �t he
' was �nterested in serving on th�s Commission, however, he had tndicated no
interest in serving on the Cable Television Commission.
MOTION by Councilwoman Moses to table this appo�ntment. Seconded by Councilman
Barnette. Upon a voice vote, all vot�ng aye, Mayor Nee declared the motion
carr7ed unanimously.
NEW 6USINESS:
RESOLUTION N0. 15-1980 CALLING FOR SALE OF PERMANENT SPECIAL ASSESSMENT BONDS:
Mr. Brunsell, C�ty Clerk, stated this resolut�on for the sale of perma�ent
special assessment bonds is before the Council for their consideration and
the tentative selling date would 6e April 14.
Mr. Brunsell stated the City has sold temporary bonds and purchases them, how-
ever, there w�ll be a need for some permanent ftnancing in order to stay w�thin
the intent of the law regard7ng the temporary 6onds. He stated the City would
only be issuing permanent bonds in the amount necessary for the pro�ects for
which assessment rolls haven't been adopted.
Mr. Bob Ehlers of Ehlers and Assoc�ates, Inc. stated the statute limitation
rate on bonds is 7%, however, with the rise in interest rates, it isn't possible
to sell bonds with the 7%. He stated it is ant�cipated the Legislature will
raise the 7% ltmit and he would suggest an Aprtl 14 sale in the amount of $1,755,000,
� wtth the hope that the Legislature would give some rel�ef by raising the interest
rate so cities can have access to the credit market.
Mr. Ehlers stated, if this resolution is adopted calling for ihe sale of the
bonds, they would monttor the market, and if the Legislature did not change
the rates, they would then come back before the Council.
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REGULAR MEETING OF MARCH 3, 1980 PAGE 3
Mr. Ehlers stated currently there are three bills before the Leg�slature.
One of the bills would raise the 7% ltm�t to 10%. Another btll would remove
the 11mit entirely where the bonds were put up for competitive sale, and the
other b�ll would tie the maximum interest rate to some rate of government
obligations, which would then move with the general marl;et.
Mr. Ehlers stated he believed the most l�kely bill to succeed would be the
10% ltmit, although there is some talk about reducing that to 8%. Councilman
Schneider questtoned what interest rate the C�ty was charging. Mr. Brunsell '
stated 7-1/2% interest has been charged on those that have been assessed.
Councilman Schneider pointed out if the City has to sell the bonds at 9%, the
situation would be such that the costs aren't being covered. Mr. Brunseil
stated, if there are some prepayments of assessments, then that money can
be invested.
Mr. Ehlers stated there �s no bill in the Legislature to raise the maximum
interest rate the City can charge on special assessments. He stated, in
the past, the C�ty charged a higher interest rate on the assessments than
what was pa�d on the bonds, however, if the interest rate on the bonds is
above 8% and only 8% �nterest can be charged on the assessments, the City
probably would be faced with levying some taxes
Mayor Nee felt this rai�es the question tf the City should offer financing
on any future pro�ects.
Mr. Ehlers stated one of the problems, with this being an election year,
act�on to raise the �nterest rates wouldn't be too popular and the bills
aren't receiving a lot of attention. He felt they are important because if
the problem isn't taken care of a iot of f�rms will be cutting back on staff.
He stated the failure to receive any credit will have serious consequences
for labor unions, builders, architects and others.
Councilman Schneider questioned, if the bonds weren't sold and the temporary '
bonds expire, what would happen.
Mr. Ehlers stated so long as the City doesn't impair its ability to pay
other obligations, they could probably provtde some temporary financing.
Mr. Herrtck, City Atiorney, feit there is no immediate problem as, obviously,
there is no serious consequences of not �ssuing permanent financing �f, �n
fact, �t is impossible to do so.
Mr Ehlers stated, if it is possible to sell the bonds in April and, even
though the City can't charge a higher interest rate on the assessments, it
would free 31,755,000 to invest. He stated he anticipates the Legislature
will act on the interest rate limit, however, if the April date approaches
for the sale and they don't feel they have a market, they will come back to
the Council
MOTION by Councilman Schneider to adopt Resolution No. 15-1980 and receive
the b�ds on April 14, 1980. Seconded by Councilman Barnette. Upon a voice
vote, a71 voting aye, Mayor Nee declared the motion carried unan�mous7y.
CONSIDERATION OF APPROVING AN AGREEMENT WITH THE ANOKA
MOTION by Councilman Fitzpatr�ck to approve the agreement with the Anoka '
County Workshop Seconded by Councilwoman Moses.
Mr. Qureshi, C�ty Manager, stated the total payment of $10,000 would be made
in two payments. He stated he assumed the second payment would be made con-
tingent on the revenues formula not changed by State Legislation.
UPON A VOICE VOTE TAKEN ON THE MOTION, all voted aye, and Mayor Nee declared
the motion carried unanimously.
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REGULAR MEETING OF MARCH 3, 1980
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RESOLUTION N0. 16-1980 REGARDING PROPDSE� LEGISLATIVE CHANGE IN THE
FIREMEN'S PENSION LEGISLATION
Mr. Chuck McKus�ck, 7330 Van Buren Street, stated the Council had rat�fied
an m crease in pension benefits for volunteer firefighters, however, the
State Legislature has nullified the increase and the State law now freezes
pension benefits for volunteer f�refighters.
� He stated the firefighters have requested their representatives to author
a bill that would exempt the Fridley ftreftghters from the freeze.
Mr. McKusick stated the Council ts, therefore, being asked to endorse the
efforts of the firefighters in Fridley to have their own bill passed in the
State Legislature.
He stated there is no change in the financing of the volunteer firefighters
program and the Counctl's action on this resolution, and adoption of a
State law for the Fridley firefighters, would not increase the City's
ltability or tax imposed on the r.itizens because of this action.
MOTION by Councilman Fitzpatrick to adopt Resolution No 16-1980 Seconded
by Councilman Schne�der. Upon a voice vote, all vot�ng aye, Mayor Nee de-
clared the motion carrted unanimously.
IDERATION OF FIRST READING OF AN ORDINANCE DELETING EXISTING CITY CO�E
Mr. Bob Aldrich, Fire Chief, appeared before the Council and reviewed the
new chapter of the Fire Prevent�on Code. He stated, under Section 108 11,
some sections are added regarding a Fire Prevention Bureau and Fire Marshall
He stated the ordinance also includes sections that will establish some
monitor functions of alarm systems in certatn classes of occupancies such as
� educational, institutional and others such as hotels, dormitories, lodg�ng
and roominy houses
Councilman Schneider stated his concern regard�ng the fire at the Senior Nigh
School on November 19 was that the f�re alarm was turned off at the time the
ftre occurred He stated, apparently, thts was due to human error. He felt
they should learn from their past mistakes and what is being suggested �s a
stricter ord�nance which requires that alarm systems at educational and oLher
institutions have more than ,7ust the alarm signal. He stated this would in-
clude a signal to indtcate trouble or a signal to indicate the power supply is
off. He stated tnis language ts tncluded under Section 108.043 of this ord�nance.
Councilman Schneider stated, at the caucuses held last Tuesday, at least ftve
of the nine prectncts passed resoluttons asking the State and City to re-
evaluate the alarm systems for schools. He further stated bills have been
introduced in the Legislature for stricter rules such as the ordinance which
is now before the Council.
Mr. Aldrich stated the bill referred to by Councilman Schneider is Senate F�le
No. 2167 introduced 6y Senator Schaaf which has been referred to the Committee
on Education.
Counc�lman Schnetder stated his orig�nal proposal stipulated sprinkling systems.
Mr. Aldrich stated that would be in confl�ct with the Uniform Bu�lding Code
and as he reads the code, it would take special legislation, adopted by
� the Legislature, to be able to bring about this requirement.
Mr. Aldrtch explained the City has the right to require the sprinkling systems
in some establishments as a requirement for licensing.
MOTION by Councilman Schneider to wa�ve the reading and approve the ordinance
upon first reading. Seconded by Councilman Fitzpatrick.
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REGULAR MEETING OF MARCH 3, I980 PAGE 5
Councilman Schneider stated he had a question under Section 108.Q4 regarding
the defim tion of "certain residential occupancies". Mr. Herrick stated he
also questioned the interpretation and felt thts could be reviewed before
the second reading. Several other changes suggested were to change the
word "City" on line 3, Sect�on 108.043 to " County" and under Section 108.044,
the reference to Subdivision I was no longer appropriate
UPDN N VOICE VOTE TAKEN ON THE ABOUE MOTION, all voted aye, and Mayor Nee
declared the motion carried unantmously.
Councilman Schneider requested a 7�st of all the places that would be affected
by this ordinance.
RESOLUTION N0. 17-1980 ORDERING PRELIMINARY PLANS, SPECIFICATIONS. AND
Mr. Qureshi, City Manager, stated this resolution covers a number of streets
and utilities the Counctl has ordered He stated the bids for these pro�ects
would be opened on April 17 and the bid for the bonds opened on April 14.
He stated it is hoped, at that time, the C�ty will know the status regarding
financing. He stated receiving of bids does not commit the City to awarding
the contract for the pro�ects.
Mr. Elerrick, City Attorney, stated, if the ceiling rate for interest charged
on special assessments is not increased, it is possible the pr�ncipal of the
assessment inay be �ncreased by including an item regarding interest defictency.
He felt thts would be a legitimate add�tion so the City wouldn't be subsidizing
the pro�ect.
MOTION by Counci7man Schneider to
Counc�lman Barnette. Upon a voice
the mot�on carried unanimously.
adopt Resolution No. 17-1980. Seconded by
vote, all voting aye, Mayor fdee declared
RESOLUTION N0. 18-1980 RECEI�ING THE PRELIMINARY REPORT AND RECEIVING
I
EMENT PROJECT
I�17i1
MOTION by Councilwoman Moses to adopt Resolution No. 18-1980. Seconded by
Counc�lman Schneider. Upon a vo�ce vote, all voting aye, Mayor Nee declared
the motion carried unanimously.
RESOLUTION N0. 19-1980 ORDERING IMPROVEMENT AN� FINAL PLANS AND SPEC
MOTION by Councilman Schneider to adopt Resolution No 19-198D. Seconded by
Councilman Barnette. Upon a voice vote, all voting aye, Mayor Nee declared
the motion carried unanimously.
Counc�lwoman Moses asked if the problems with the Blomberg Estates pTat have
been resolved.
Mr. Qureshi, C7ty Manager, stated staff has had several meetings with them,
however, no f�na] agreement has been rece�ved from the deve7oper.
Mr. Qureshi felt, however, it would be of benefit to the developer and City
to proceed for calling of b�ds and, hopefully, the problem will be resolved.
He felt any delay would tend to inflate the cost of the pro,7ect and, at this
time of year, a mare favorabie bid would be received.
Councilman Schneider pointed out if the problem is not resolved by the time
the 6ids are to 6e awarded, they could be rejected.
UPON A VOICE VOTE TAKEN ON THE ABOVE MOTION, all voted aye, and Mayor Nee
declared the motion carried unanimously
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REGULAR MEETING OF MARCH 3, 1980
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ROVEMENT, APPR�1/AL OF PLANS AND
MOTION by Councilwoman Moses to adopt Resolution No. 20-1980. Seconded
by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Nee
declared the motion carried unanimously
TION N0. 21-
RING PRELIMINARY PI_ANS. SP
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MOTION 6y Councilwoman Moses to adopt Resolution No. 21-1980 Seconded
by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Nee
declared the motion carried unanimously
ON N0. 22-1980 RECEII/ING THE PRELIMINARY REPORT AN� RECEIVING
MOTIDN by Councilman Schne�der to adopt Resolutton No. 22-1980. Seconded
by Councilman Barnette. Upon a voice vote, all voting aye, Mayor Nee
declared the motion carried unanimously.
RESOLUTION N0. 23-1980 ORDERING IMPROVEMENT AND FINAL PLANS AND SPECIFI
MOTION by Councilman Schneider to adopt Resolutton IVo. 23-198D. Seconded
by Councilman Barnette. Upon a voice vote, all vottng aye, Mayor Nee
declared the mot�on carried unam mously.
RESOLUTI�N N0. 24-198D ORDERING IMPROVEMEN7, APPRO�AL �F PLANS AND OR�ERING
ADVERTISEMENT FOR BIDS: SEWER AND WATER PROJECT N0. 130:
MOTION by Councilwoman Moses to adopt Resolution No. 24-1980 Seconded by
Gouncilman Schneider. Upon a vo�ce vote, all voting aye, Mayor Nee declared
the motion carried unanimously.
CLAIMS�
MOTION by Councilman Schneider to authorize payment of Claims No 046M19
through 059897. Seconded by Councilwoman Moses. Upon a voice vote, all
voting aye, Mayor Nee declared the motion carried unanimously.
LICENSES:
MOTION by Councilman Fitzpatrick to approve the licenses as submitted and
as on file in the License Clerk's Office. Seconded by Councilman Schneider.
Upon a voice vote, all voting aye, Mayor Nee declared the motton carried
unanimously
ADJOURNMENT:
MOTION by Councilman Schneider to ad�ourn the meeting. Seconded by Council-
woman Moses. Upon a voice vote, all voting aye, Mayor Nee declared the motion
carried unam mously and the Regular Meetin9 of ihe Fridley City Council of
March 3, 198D ad�ourned at 9:10 p.m.
Respectful1y submitted,
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Carole Haddad
Secy. to the City Council
Approved P9arch 17, 1980
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Will�am J. �'ee
Mayor
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