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12/07/1981 - 0001305430� THEi MIfiUTES OF THE REGl1LAR MEETIPIG OF THE FRI�LEY CITV CDUPJCIL OF DECEMBER 7, 1981 The Regular Meet�ng of the Fridley City Council was called to order at 7:40 p. m. by Mayor Nee. PLEDGE OF ALLEGIANCE: P1ayor Nee led the Council and audience �n the Pledae of Allegiance to the Flag. ROLL CALL: MEP16ERS PRESEflT h1EMBERS ABSENT APPROUAL OF f+IINUTES. Mayor fJee, Councilman Barnette, Councilman Schneider and Councilman Ftizpatrick Councilwoman P4oses-Martin REGULAR MEETIPJG, f40VEh16ER 23, 1921: MOTION by Counctlrnan Schneider to approve the minutes as presented. Seconded by Counctlman Fitzpatrick. Upon a voice vote, all vottng aye, hlayor fJee declared the mot�on carried unanimously. ADOPTIOfJ OF AGEPdDA: MOTIOfd by Councilman Fitzpatrick to adopt the agenda as submitted. Seconded by Counc�lman Qarnette. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. OPEfJ FCRUI'l, VISITORS: Ihere was no response from the audience under this �tem of business. PU6LIC HEARING: � °PUI3LIC HEARING OPJ CONSIDERATIGN OF A HOLSIPlG PLAN AfJD PRDGRAP9 FOR TNE CITY OF FP.IDLEY TO ALLOW CITY TO DEVELOP AfJ� ADP1INISTER PROGRAPiS OR P�AKIPlG OR PURCHASII;G fiORTGAGE LOAf1S TO FIfJAPlCE HOUSIPIG WITHIfI ITS 60UNDP,RIES. �he Public Hearing on th�s Housing Plan and Program was opened at 7:9� p. m. Pir. Boardman, City Planner, stated the Housing Plan, under Chapi.er �62-C of the State law, allows cities to develop and admi m ster programs for housing mortgage bonds. He further stated this is also part of the act which authorizes the Plinnesota Finance Agency to sell bonds, and part of the industrial revenue bond package. h1r. Boardn�an stated the Houstng Plan and Program that �s before the Council is one attempt to provide another tool to allow the construction of hausing units, and for the developer to use tax exempt financtng. Fle stated it further requires that 20i of the un�ts must be available to low and moderate income persons. h1r. Boardman stated, if the Housing Plan is adopted by the Council, it has to be submitted to the P1etropolitan Council for review and they, in turn, submit �ts find�ngs on the document. He stated the plan is then submitted to the Nlinnesota Housiny Finance Agency for approval. � � Nir. Boardman stated the plan is a general plan for the development of housing , and lays out the purpose of housing, the need for housing, and a general lay- out on hcw the City is going to accomplish obtaining additional housing. REGULAR MEETING OF DECEMBER 7, 1981 PAGE 2 4 C �� 1 hir. Boardman stated the program itself is avery detailed layout of the financ�ng by the pro,7ect involved He explained the Council would review a certain housing project and the financ�ng for the pro,7ect and the program would be submitttd to the Minnesota Nous�ng Finance Agency for approval. Councilman Barnette stated there is reference to the Ctty administering the program and asked if there is an agency involved. � Mr Boardman stated the process is the same as for industrial revenue bonds and the City would have an inducement resolution and pass a resolution for the sale of bonds through a private mortgage. Mr. Boardman stateci the plan submitted doesn't have a detailed program, but is adequate for review by the P4etropolitan Council. He suggested the Council adopt the Housing P7an, for submission to the P4etropol�tan Council, and keep open the public hearing on the Housing Program. Counctlman Schneider asked if the City would be locked into a program, as it is spelled out in the material before the Counc�l th�is evenino f4r. Boardrr�an stated each program will be submitted separately to the P1innesota Houstng Finance Agency or they can be submitted as one program, depending o3i how the Council wishes it submitted. Councilman Schneider asked what is the public purpose that �s supposed to be served by the City, P1etropolitan Counci, and State getting involved in hous�ng programs where mortgage money is made avatlable on a tax exempt basis and is a break for the developer. Nr. Boardman stated the main reason is to provide additional housrne for low and moderate income persons, 6ased on the Section 8 criteria. Councilinan Schneider referred to Page 28, third paragraph, and asked the � meaninq of the two sentences. Mr. Boardman stated this �s saying that the City has to look at some pu6lic assistance to bring the structure of income limits into play or througn a dtrect subsidy of tax increment ftnancing in order to make those units eligible under the 20� rule. h1r. Boardman stated a devefp�ier has to guarantee that 20i of the units wtll be occupied by persons of low and moderate tncome households and the level of rents will have to be determined in order for them to qualify as low and moderate �ncome units. He explained in order for a developer to reduce the rents for these units, he has to spread the costs against the other units for the pro,7ect to work. He stated it is pretty difficult for a developer, �ust berause he lowers the rent, to quarantee those units will be occupied, as there is a very limited number of people available that have the money to pay the rental fee. Pir. Boardrnan stated, in order to make the pro,7ect feastble, the income to the developer should be guaranteed for a certain number of dollars and those units available to low and moderate income persons may have to be subsidized to make up the difference in what they can pay and what the rental is for the un�t. Councilman Schne�ner stated tf these pro�ects are built whaz they are saying is that Elousing and Redevelopment Authority will be writing a check to the owners of the buildings to substdize the rents for 2C% of the building. Mr Boardman stated he is not saytng for sure �hat �s how it would be and it would depend on whether it would be financially feasible to do th�s in � a tax increment dlstrlct. 3 �i � REGULAR MEETING OF UECEPIQER 7, 1981 PAGE 3 Counctlman Schneider stated it seems the developer will get the benefit by this type of financtng and will save millions of dollars over the life of the mortgage, and I didn't feel it was the City's obligation to subsidize the rents. Mr. Boardman stated under tax increment, the developer has the right to request f�nanc�ng if no other financing is avatlable and he has to cuarantee that 20i of the units are occupied by low and moderate income persons. Councilman Schneider stated he would feel more comfortable if these sentences , were phased more negat�ve7y or deleted. Councilman Schneider asked if there weren't enough funds in the tax increment dtstrict to subs�dize 20� of the um ts, would it fall back on the rest of the taxpayers in the Cit�r. Mr. Boardman stated you have the same situat�on you would have on any other tax increment district and that is the City is yuaraniee�ng bonds based on general obligation funds. Mr. Qureshi, City hlanager, stated any housing plan has to stand by ttself in the increment district, no increment from outside can be put �nto the area. Mr. Boardman stated no increment from outside the pro�ect can go into the subs�dy. Counc�lrnan Schneider stated if they adopt this plan what it is saying is the City wtll guarantee to the Minnesota Houstng Finance Agency that 20% of the unrts will 6e rented to low and moderate income persons and, if necessary, the City will subsidize the rents. Nr. Quresht felt possibly the words "will consider" should be added instead of the word °YJI��" to clarify the City will only consider it. He stated the underwriters will determine if the pro,7ect is financ�ally feasible. � Mr. Boardman stated each program is reviewed individually and at that time, the Council makes a decision if they will subsidize 2090 of the units, at a certain level, and that �s built right �nto the program before it goes to the Minnesota Housrng Finance Agency. Cauncilman Schneider stated he is not, at th�s point, convinced the fiity should be in this business. He stated they now have three tax increment cl�str�cts going and h<�ve not haxi a great success wtth any of them. He felt they are getting deeper and deeper �nto somethinq w�thout prov�nq the success of the tax increment district. Mr. Boardman stated the persons who actually buy those bonds have to show some guarantee that those units wtll be occupied because at any point in time they are not occupied by a low and moderate income person, they lose their tax exempt status. Mr Robert Schroer, 4°� Rice Creek Boulevard, stated he would be involved with the north hous�ng pro,7ect and �f there isn't some indicattan on the tax increment and other assistance from the City, this pro,7ect w�ll not proceed. He stated, tn talking to the f�nancial people, they don't know if the pro,7ect w�ll go even if there is some financial assistance from the City. Councilman Schne�der stated as far as us�ng increment for write down costs, � he doesn't have a problem with �t, but has a problem with using tax increment to subs�dize the rents. No other persons in the aud�ence spoke regarding the housing plan and program. � ' � 3 �1 �;,� REGULAR h1EETING OF DECEMBER 7, 1981 PAGE 4 P�i0TI0fu by Courcilman Barnette to close the �ubl-�c Y�earin� or the Neus�n� Plan and to continae the hearing on the Hous�ng Program to the first meeting in February. Seconded by Counc�lr�ar Fttzpatrick. Upor a vo�ce vote, all voting aye, Mayor Nee declared the motion carried unam mously and the publ2c hearing on the Housing Plan closed at iS:28 p. m. NEb� BUSIfvESS: Councilman Schneider felt there should be further informatton before action ts taken on this ord�nance arid brought up such items as cost of �nspectio��s, the fm ancial impact, assuran�.e that existing tenants are properly notified, the affects on the Comprehensive Plan ��r�u Housing Plan, and the impact on the parls and recreation facilities. MOTICN by Counctlman Schneider to table th�s itern and request the administration to work up a new proposal. Seconded by Councilman Fitzpatrick. Lpon a voice vote, a17 voting aye, Mayor Pdee declared the mo�tion carried ui�aniinously. �; RECEIVING PLANNIhG CCMMISSION NINUTES OF NOVEh"�ER lE, 1981: �� CONSIDERATION OF STOP SIGN STUDY B`f ENEFGY COMMISSIGN• Mr. Flora, Publtc Wcrks �irector, stated the recommer�dation of the Erergy Commisston was for the staff to ma{;e a cnmple�e stuuy of stoj� signs instGlled for the purposes of controlltng traffl c speed and the possibility of replac�ng those signs with 25 Vn.n.h. speed zone signs for purnoses of energy conservation. Mr. Flora stated it is suggested ihe Energy Commission do this study, ���ith staff supplying the necessary information. Gouncilman Barnette felt the Public Safety Director shoGld also 6e i��volved in the study. MOTION by Ccuncilman Schneider to authorize the Energy Commissior, to st��idy the feasibtltty of changes tn the stop signs installed for the pui�poses cf controlling traffic speed, with input by the Public Safety Girector and staff provtding the necessary information. Seconded by Councilman Barrette. Upon a voice vote, all voting aye, Mayor Nee declared the mntior, carried unanlmously. h10TI0N by Councilman Schneider to receive the minutes of the Plannina Commtsston Meeting of November 18, 19E1. Seconded by Counc�lman Barnette. Upon a voice vote, all voting aye, Mayor Pdee declared the motion carried unam mously. f ; 4 RECEIVING LATV � ISSIOPJ MINUTES OF MEEIING fiND PUBLIC HEARING ON CABLE `� nREFRAPdCHISING OF NOVED16ER 12, 1481: � MOTION by Councilman Fitzpairick to receive the minutes of the meetrna and public hear�ng of the Cable Television Commiss�on of November 12, 1981. Seconded 5y Councilman Schneider. Upon a vo�ce vote, all votiny aye, Mayor Nee declared the motlon carrted unanimously. IP1G TO PETITION N0. 11-1981 AGAINST BERMING Mr Flora, Public Works Director, stated it was requested the City inspect the berming in the Commum ty Park. He stated the Pollution Control Agency was contacted and they reviewed the impact the trains were havirg on the neighborhood. 31Q REGULAR PIEETING OF NOVEMBER 7, 1981 PAGE 5 Mr. Flora stated in a report received from the Pollution Control Agency, it was their opinion that the berms weren't h�gh or long enough to provide echoing from the trains. He stated they further advised that earth berms possess an added advaniage and instead of reflecting noise from one side to another, as walls do, ihey deflect sound upwards. Mr. Flora stated, 6ased on the �nformatton from the Pollution Control Flgency, the berming �s not having an impact on the area west of the Community Park. Counc�lman F�tzpatrick felt the statements they aren't having impact on the residents are diff�cult to believe in attempting to explain to persons who ltve their that the noise hasn't increased. Mr Ray Lum ewski, 6959 Hickory Circle, felt the report from the Pollution Control Agency didn't mean anything and one person wasn't qualified to make that determination. He stated the berms would absorb some of the noise if they were parallel to the tracks instead of perpendicular. Mr. Quresh� stated information has been provided that indicates earth berms don't re7iect sound back, but deflect it upward, and he didn't know what other evidence could be prov�ded to make a 6etter judgment. Councilman F�tzpatrick stated, rn talking to the residents, their chief concern was �ncreased traffic and increased speed of the trains and they perceive more noise s�nce the berms have been in existance. hlr. Qureshi stated he would agree the train traffic is more frequent and ]onger, but we can run decibel readings to determine noise levels. He stated it �sn't the Crty's desire to promote anything that will have an adverse effect on the neigh6orhood. Mr. Mike Pawlyshyn, 6969 Hickory Ctrcle, stated he would like deci�el readings taken and to be present when they are done. �dr. Pawlyshyn stated he finds Mr. Olson's letter an insult as they are not � senile and haven't imagined the increased noise. Mr. Quresht stated the berm along 69th is high because they are trying to provide screen�ng to the homes to the South. He stated if the residents can come up with some idea to help their situation, the City would work with them. He stated, however, the facts presented indicate the berms shouldn't create a noise impact on the neighborhood. Pir,Luniewski indicated he wasn't against the park, but a park should be flat and the berms are acting like a sounding board bouncing the noise back into their neighborhood. Councilman Barnette stated it seems to him the noise would go to the PJorth �nstead of to the West in the d�rection of the�r neighborhood. Counc�lman Barnette felt a letter should be sent to the restdents, who signed the petitton, notify m g them that a investigatton was done and the results of the study. Mr. Flora, Publtc Works Director, stated the way the berms are constructed, it is very hard to get a bounce back and felt once the landscaping is completed, it should help further with any sounds, Councilman Fitzpatrick stated, besides the berms, there is frustration with , the trains, not only the increased number of them, but increased speeds. Mr. Herrick, City Attorney, stated the only area where the City might pcssibly have some control �s the speed of the trains, but felt they would have no control over the length and number of trains, � C�: REGULAR P4EETING OF DECEMBER 7, 1981 PP,GE E Mayor Nee asked tf the City weuld have any controi ever the smoke emissions by the tratns. Mr. Herrick felt perhaps they could get someone from the Pollutian Control Agency to check on the smoke emissions. Mr. Luniewsk� stated he has called Burlington P�orthern a num6er of times and felt if th�City wrote a letter to them stating they have received complaints on the smoke, length, and speed of the trains, �t may help to alleviate some of the problems. Mr. Qureshi, City Manager, stated the staff would check into this further to determine if anything could be done. MOTION by Councilman Fitzpatrick to receive the report relating to Petit�on No. 11-1981 against berming along the BurlingtonJNorthern Ra�lroad Tracks. Seconded by Councilman Schnetder. Upon a voice vote, all voting aye, Mayor PJee declared the motion carried unan�mously. M�TIOPd by Councilman Barnette to direct a letter be sent to those persons who signed the petition nottfying them of the invest�gation and the results. Seconded by Councilman Fitzpatrick. Upon a voice vote, all voting aye, Mayor Pdee declared the motion carried unanimously F 2. SEWER AND WATER PROJECT N0. 132 Mr. Flora, Pub7�c Works D�rector, stated the Minnesota Pollution Control Agency has deternnned that the proposal to relocate the dratnage ditch south from the City beach will not benefit the water quality and is, therefore, not eligible for ,7oint funding by the Environmental Protection Agency and the State. Mr. Flora stated the contract with Crossings, Inc include $11,000 for relocation of the beach storm sewer and placing �t in a culvert, therefore, � he felt it would be economically prudent to delete this from the existing contract. Councilman Schneider asked about the impact on the entire pro,7ect by deletion of tPns culvert. � � �i� Mr. Flora stated the Minnesota Pollution Control Agency took the position that the cu7vert ts not signiftcant enough to warrant any type of construction. Mr. Flora stated perhaps the 6iggest asset would be the aesthetics and hav�ng the drainage in a pipe tnstead of an open ditch, makina tt easier to ma�ntain. Mr. Flora further stated the change order would not precluded the City from construction of th�s culvert at a later date, but would delete 7t from the pro,7ect at this time. P10TION 6y Councilman Schneider to approve Change Order No. 2 for sewer and water pro�ect No. 132 (Moore Lake Restoration Pro,7ect} w�th Crossings Inc. �n the amount of $11,OD0 for deletion of the drainage ditch south from the Moore Lake 6each. Seconded by Councilman Barnette. Upon a voice vote, all vottng aye, Mayor Nee declared the motion carried unanimously. RECEIVING BIDS AND AWARDING BIDS, �IESEL DUMP TRUCK (BIDS OPENED 1D/13/81): Mr, Flora, Publ�c Works �irector, stated eight bids were received for this five-ton dump truck. He explained bids were requested for a gas engine, as well as for a d�esel engtne. Mr. Flora stated staff has made a study and itnds the diesel eng�ne is more fuel efficient and lasts longer than the gas engine and would like to establish a policy, when heavy pieces of equipment are replaced, they go with a diesel engine. REGULAR MEETING OF DECEMBER 7, 1981 PAGE 7 MOTION by Councilman Fitzpatrick to receive the bids, DUMP VEPIDOR MODEL � BODY GASOLINE - DESEL MOTOR Supericr Ford Boyer Ford LaHass GMC Truck & Ccach Lakeland Ford VENDOR Superior Ford Boyer Ford GP1C Truck & Coach Lakeland Ford L800 19E1 L8000 1982 L800 19�2 L8000 1982 6,212.00 �8C042 L800 L-Z LBODO $29,121 �3a,414 29,618.12 34,354.40 37,637.OD 24,653 �4,270 WARRANTY �ELIVERY �ATE ALTERNATIVES standard 90 - 120 days LaHass �� �� �� standard °0 - 120 days �� �� standard 90 - 12D days to body company 90 days 3�2 ' BID BOIJD ETC. Reliance Ins. � 207.OD-48� St. Paul Fire Truck Outfitters - tuck Util. 207.00 T/0 Chubb Ins. 548.00 Mac/Queen 887.00 Garwood 207.00 T/0 Likerty Mutual Seconded by Councilman Barnette. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. � RESOLUTION N0. 135-1981 OfJ ADOPTING A HOL'SIf1G PLAf! AND DISCUSSION PROGRFlPI OF MAKIfJG OR PU S TO FINANCE Mr. Boardman, City Planner, stated he would suggest a change in the Housino Plan on Page 2�, the third paragraph, to read as follows. "Both pro7ects are located in a tax increment finance district and will utilize private financing with potential for public assistance as allowed under Chapter 462 of the P1innesota State Law. The actual financing to be reviewed ti�ith each ind�vidual program approval. The developer would provide that 20% of tYie total units would be available for low and moderate income households, as defined in Sect�on �, for a period of not more than 20 years," hi0TI0fa by Councilman Schneider to receive the plan, with the above amendment, as proposed by Mr. Boardman. Seconded by Councilman Barnette. Upon a voice vote, all voting aye, P9ayor f�ee declared the motion carried unantmously. Pi0TI0fd by Councilman Barnette to adopt Resolut�on Plo. 135-19F31 adopting a Housing Plan, with the above amendment in the Houstng Plan. Seconded 6y Counc�lman Schneider. l,pon a voice vote, all voting aye, Mayor flee declared �he motion carried unanimously. t���' RESOLUIION N0. 136-1981 ADJUSTING THE CITY OF FRIDLEY MILEAGE h10TI0�J by Councilman F�tzpatrick to adopt RPsolution Mo, 136-1951. Seconded by Councilman Schneider. Upon a voice vote, all vottng aye, hlayor Nee declared ihe motion carried unanimously. � , ��� REGULAR MEETING OF DECEMBER 7, 19�1 PAGE 8 �� nONnIDERATcONrOFrAPPROVINGnTHE^INFORMATION TDnBErRELEASnD TO THE PUBLICrON ��� �I 1 .i � Councilman Schreider stated ii has been 6rouqht tc his attentior that the term "membershtp fees" is ob�ectionable, and felt a better term would be "user fees". Mr. Kondr�ck, Chariman of the Parks and Recreation Commission, rev�ewed the information to be supplied to the residents and felt �t was accurate, and the result of a lot of work done by a separate advisory committee. Mr. Kondr�ck felt the informatior tells the citizens what the buildir�g would tnclude and user fees are mentioned, as well as the net cost for construct�on of the building. Councilman Barnette asked the feelings of other members of the Parks an� Recreat�on Commiss�an and if they are support�ve of a recreaticn center butlding. Mr. Kondrick stated all members of the Commission are in favor cf the buildtng and hope it can be constructed. Counctlman Barnette asked tf a floor plan would be submitted with the other informational material. �r. Boudreau, Director of Parks and Recreat�on, stated the floor plan is being printed and will go out with the cther information which will be mailed w�th the Parks and Recreat7on winter brochure. The Counctl quest�cned the user fee and Dr. Boudreau stated chis fee or membership would gtve a person prtority 7n use of the courts and discounts on use of other fac�lities, however, some facilities would have no extra charye. MOTIOW by Counc�lman Barnette to set the referendum election on the proposal for the recreatior center bui1dins for Tuesnay, February 16, 1982 with the same polling places used in the General Election. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor flee declared the motion carried unanimously. MOTION by Cou�cilman Schnetder to approve the language to be used on the ballot pertaintng to this center. Seconded by Counc�lman Darrette. Upon a voice vote, all voting aye, Mayor fJee declared the motion carried unanimously. MOTION by Councilman Fitzpa�rick to approve the letter to be submitted to trie residents, as shown on Page l� of the agenda. Seconded by Ceuncilmar� Barnette Upon a voice vote, all voting aye, Mayor Plee declared the motion carried unanimously. MOTION by Councilman Barnette to approve the informat�onal material to be distributed, with the amendment of chang mg "membership fee" to "user fee" Seconded by Councilman Schne�der. Upon a vo�ce vote, all voting aye, P1ayor Nee declared the motion carried unanimously. CLAIPIS MOTION by Councilman Barnette to authorize payment of Claims No. 32753.s through 337W11. Seconded by Councilman Fitzpatrick Upon a voice vete, all votin9 aye, 1�1ayor PJee declared ihe motton carried unanimously. ���� � REGULAR h1EETING OF DECEPIBER 7, 19�1 � 2 LICEfdSES. PAGE 9 Counc�lman Barnette questtoned the license for the No. 1 Flealth Club. Mr. Herrtck, City Attorney, stated a citat�on was issued to them for occupying the building without a certificate of occupancy, however, they have appealed. MOIION 6y Councilman Barnette 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, P1ayor PJee �eclared the motion carried unanimously. �I p� ESTIh1ATES. i MOTION by Counctlman Fitzpatrick to approve the estimates as su6m�tted. Herrick & Newman, P.A 5279 University Avenue N.E. Fridley, P�innesota 55432 For legal services rendered as City Attorney for the�month cf November, 19E1 Herrick & PJewman, P.A. E279 Un�versity Avenue N.E. Frtdley, P1innesota 55432 W6+IH Properties - Industrtal Revenue Bonds $2,E51.25 $1,750.00 Seconded by Councilman Barnette. Upon a voice vote, all voting aye, Mayor Nee declared th e motion carried unanimously. ADJOURNMC-fdT: MOTIOfd 6y Councilman Barnette to ad,7ourn the meeting. Seconded by Councilman Schneider. L'pon a votce vote, all voting aye, Mayor Plee declared the motion carried unan n��ously anci the Regu7ar Meeting of the Frtdley City Council of December 7, 19�1 ad,7ourned at 9•55 p. m. Respectfully subnntted, � , � ���Zi �,�/"��-/ Carole Haddad Secy. to the City Council Approved January 4, 1982 C`�� r+ � � � ��� ,./Q;(;�'��.v� ` William� . PJee h1ayor � � �