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.
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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
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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.
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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.
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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
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ISSIOPJ MINUTES OF MEEIING fiND PUBLIC HEARING ON CABLE
`� nREFRAPdCHISING OF NOVED16ER 12, 1481:
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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.
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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,
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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
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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.
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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
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standard °0 - 120 days
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standard 90 - 12D days
to body company
90 days
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BID BOIJD ETC.
Reliance Ins.
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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.
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REGULAR MEETING OF DECEMBER 7, 19�1 PAGE 8
�� nONnIDERATcONrOFrAPPROVINGnTHE^INFORMATION TDnBErRELEASnD TO THE PUBLICrON
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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.
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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.
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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,
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Carole Haddad
Secy. to the City Council
Approved January 4, 1982
C`�� r+ � � � ���
,./Q;(;�'��.v�
` William� . PJee
h1ayor
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