12/20/1982 - 000127083���
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THE MINUTES OF THE REGULAR MEETING OF THE FRIDLEY CITY COUNCIL OF
DECEMBER 20. 1982
The Regular Meeting of the Fridley City Council was called to order at
7�35 p. m• by Mayor Nee.
PLEDGE OF ALLEGIANCE:
� Mayor Nee led the Couneil and audience in the Pledge of Allegiance to the
Flag.
ROLL CALL:
MEMSERS PRESENT: Mayor Nee, Councilman Fitzpatriek, Councilman
Hamernik, Councilman Sehneider and Councilman
Sarnette
MEMBERS ABSENT: None
APPROVAL OF MINUTES:
COUNCIL MEETING. DECEMBER 6, 1982:
Councilman Schneider requested a correction on Page 6, paragraph 5, second
line to change the word "working" to "wording".
MOTION by Councilman Fitzpatrick to approve the minutes with the above
correction. Seconded by Councilman Schneider. Upon a voice vote, all
voting aye, Mayor Nee declared the motion carried unanimously.
ADOPTION OF AGENDA:
The following two items were added to the agenda after Item 13•
� "Consideration of a Resolution to the Mayor of Fourmies, France" and
"Request by the Human Resourees Commission to make an application for a
$1,000 grant".
MOTION by Councilman Schneider to adopt the agenda with the above
additions. Seconded by Councilman Fitzpatriek. Upon a voice vote, all
voting aye, Mayor Nee deelared the motion carried unanimously.
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There was no response from the audience under this item of business. Mayor
Nee asked the Public Works Director, Mr. Flora, to address the question of
pollution in the City in light of the publicity Fridley received
nationally regarding the FMC hazardous waste site.
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COUNCIL MEETING OF DECEMBER 20, 1982 PAGE 2
Mr. Flora stated the City has been aware of a possible contamination at
the FMC property, as they had a burning pit there during the 50's and 60's
to dispose of materials. He stated since this has come to the attention
of the Pollution Control Agency, FMC has been cooperating with the agency
to determine what is in the pit and to what degree it has contaminated the
soil. He stated they are studying the site, the Mississippi River,
ad�oining property, and the City's municipal well.
Mr. Flora stated there is no contamination in the City water system, '
however, there is some contamination in the private wells of FMC. He
stated FMC has reeeived approval from the MWCC and the MPCA to use this
water for industrial purposes and discharge it into the sanitary system.
Mr. Flora stated nine barrels of material have been Found in the old site,
but the material hasn't been identified. He further stated there is some
contamanation in the soal and, at this point, they are trying to determine
to what extent it is leaching through the ground and what preventative
measures can be taken.
Mr. Flora stated the State did identify a number of sites that have
contamination, to the Environmental Protection Agency. He stated the
system used in scorang these sites takes into consideration ground and
surface water contamination, the type of risks, and the population
affected. fle stated that the FMC site received the most points and,
therefore in the Environmental Protection Agency rating scheme, came out
number one.
Mr. Flora stated, as far as the Minnesota Pollution Control Agency is
concerned, this site is not the worst in the State.
Mr. Flora stated FMC is continuing to work to identify the problem and
arrive at a proper solution. He further stated the City's well system, as
well as the Minneapolis water works, is checked twice a month with the �
latest equipment developed for analyzing water samples.
Councilman Schneider stated there is also a potential problem in the
Medtronic/Onan area and asked if this site eame in at a higher rating. Mr.
Flora stated the Medtronic/Onan site was re,7ected for funding by the
Environmental Protection Ageney. He stated the reason the FMC site
received sueh a high seore was because of the ground and aurface water
contamination, the potential risk, and population affected.
Mr. Herrick, City Attorney, stated he talked to the Pollution Control
Agency Director and he confirmed what Mr. Flora had stated. He stated he
asked about testing the Fridley wells and the Mississippi River water. Mr.
Herrick stated there were trace amounts in the Fridley water, but they
were so minute they couldn't be measured and, as far as the Mississippi
River water, the amount that would be permitted was 2� parts per billion
and the most recent and highest measure was 2/10 of 1� per billion so it
would be less than 1� of the amount that would be permitted for safe
drinking.
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COUNCIL MEETING OF DECEMBER 20. 1982 PAGE �
Mr. Herrick stated he has recently sent a copy of three reports concerning
the FMC site and Medtronie and Dnan sites to the City Manager's office
possibly the Council would like to review them.
Couneilman Barnette asked who would pay for this to be corrected. Mr.
Flora stated the designation of the FMC site may qualify for assistance
under the EPA superfund project, probably if they find expensive
corrective measures are required.
� He stated the Medtronic and Onan sites are local problems which will have
to be addressed separately.
Mr. Herrick stated he thought the Federal and State governments look at
the landowners and, if they aren't capable of handling it, then some
superfund money might be made available.
OLD BUSINESS:
ORDINANCE N0. 766 ADOPTING A NEW CHAPTER � ENSITLED "PERSONNEL" AND
REPEALING OLD CHAPTER � OF THE FRIDLEY CITY CODE IN ITS ENTIRETY:
MOTION 6y Councilman Sehneider to waive the second reading of Ordinance
No. 766 and adopt it on the second reading and order publication. Seconded
by Councilman Hamernik. Upon a voice vote, all voting aye, Mayor Nee
declared the motion carried unanimously.
CONSIDERATION OF A SPECIAL USE PERMIT, SP dk82-11, PARK CONSTRUCTION, BY
CARL OLSON, TO ALLOW THE USE OF A CRUSHER TO RECLAIM CONCRETE, 7900 BEECH
STREET (TABLED 12/6/82):
Mr. Flora, Publie Works Director, stated Park Construction has requested a
special use permit to locate a roek crusher on their property to recyele
concrete. He stated the Planning Commission has recommended approval of
� this special use permit and staff has identified three additional
stipulations to be considered. They are as follows: (1) The City would
be allowed to dump their waste concrete material at this site at no cost
with credit; (2) Park Construction would take necessary steps to insure
the City and State dust, noise, and environmental limits are not exceeded;
and (3) The rock crusher generators and stock piles would be located as
far northeast of the Burlington Northern Railroad tracks as possbile.
Mr. Prairie, representing Park Construction, stated from the northeast
corner of their property, it is 1,16D feet to the nearest home and the
businesses are ahout 10D feet closer. He further stated, there aren't any
tenants closer than 800 feet.
Mr. Prairie stated they estimate about 12,000 tons of conerete a year
would be crushed and felt it would take a6out four weeks to accomplish
this operation. He stated, therefore, a permit would probably only 6e
needed For three to four weeks out of the year. He felt it would also be
better to do this operation in the winter.
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COUNCIL MEETING OF DECEMBER 20. 1982 PA E
Councilman Schneider questioned why the winter would be a better time. Mr.
Prairie stated because people would have their windows shut, and pointed
out a similar operation at the airport where he stood about S00 feet away
and couldn't even hear the operation and there appeared to be very little
dust.
Councilman Hamernik asked if they eould sprinkle in the winter, if there
is a problem with dust.
Mr. Prairie indicated it wouldn�t be possible.
Councilman Schneider stated it appears the biggest eoncern would be the
dusi from his type of operation and asked if there are any standards. Mr.
Flora stated in the City's Zoning Code, the State Code is adopted which
does address the dust problem, but didn't know exactly what criteria was
used.
Mr. Herricic, City Attorney, stated he felt what was used was an opacity
test and the question of whether the dust is thick enough to significantly
obstruct viewing of a cone or whatever is used. He felt it probably
wasn't the most scientific test, but probably the 6est one available for
that particular kind of situation,
Mr. Qureshi, City Manager, questioned the height of the stock piles, after
the concrete is erushed. Mr. Carlson stated they would be 30 feet high.
Mr. Qureshi stated there is the potential for the wind to blow this
material, as it wouldn't contain any growth to hold down the dust.
Mr. Carlson stated, after viewing the airport site and a similar operaton,
he didn't believe the dust problem would be any great detriment to the
community.
Mayor Nee questioned what creek would receive the drainage from this area,
and Mr. Flora stated the drainage goes into Stonybrook Creek.
A motion was made by Councilman Hamernik and seconded by Couneilman
Barnette to take this item off the table, and Councilman Hamernik repeated
the following motion, which was made at the December 6, 1982 meeting, and
now on the floor.
MOTION by Couneilman Barnette to grant speeial use permit, SP �82-12 to
Park Construction for only a one year period after that period it is to be
reviewed and re-evaluated and, further, that the City be allowed to dump
waste concrete material at Park Construetion's storage site. Seconded by
Councilman Hamernik.
Councilman Fitzpatriek asked if a shorter permit could be granted rather
than for one year.
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COUNCIL MEETING OF DECEMBER 20� 1982
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Mr. Carlson stated he didn't know if they would have enough concrete a
year from now to even crush it, as it takes a while to let the
contractor's know this site is available for crushing concrete.
Mr. Prairie stated the Council may wish to consider giving the special use
permit for one crushing operation and then the Council could view the
operation.
Mr. Carlson stated they intend to get into the business because of the
State program, but it didn't mean a crusher wzll be on this site.
MOTION by Councilman Barnette to amend the motion to grant the special use
permit, SP #82-12 only for the period from March 1, 1983 to February 28,
1984 and re-evaluate the permit at the first regular meeting af the
Council in March, tg84, providing there has been one crushing operatior. at
that time. Further� that the City be allowed to dump their waste conerete
material at this site at no cost with credit; Park Construction would take
necessary steps tv insure the City and State noise, dust, and
environmental limits were not exeeeded; and the rock crusher, generators
and stock piles would be located as far north and east on the property as
possible. Seconded by Councilman Hamernik. Upon a voice vote, all voting
aye, Mayor Nee declared the motion carried unanimously.
Mr. Qureshi, City Manager, stated there is the potential some of this
material may get into Stonybrook Creek and felt it was reasonable for Park
Construction to meet the standards and criteria of the Rice Creek
Watershed District.
Mayor Nee stated he felt this was imperative sinee the dust may be a
serious consideration for adjoining properties.
Mr. Qureshi stated, that the requirements to be followed is that, there
should be no dust problem beyond Park Construction's property lines.
MOTION by Councilman Fitzpatriek to amend the above motion by adding that
the same standards regarding run-off be applied to this site, as applied
in the Rice Creek Watershed area. Seconded by Councilman Sarnette.
Mr. Flora stated what is required is some sort of detention pond for
surface water on the site and a weir to filter the water before it goes
into the stream.
Mr, Prairie asked if this would be required if there isn't any problem.
Mr. Qureshi stated these standards are applied for any new development and
before any water goes into the creek, it is detained and goes through a
filter system.
Mr. Carlson felt this operation should be monitored for a year and if it
poses a great problem, they would work with the City Engineer to take
immediate action to correct it.
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COUNCIL MEETING OF DECEMBER 20, 1982
PA E
Councilman Schneider asked if they would be willing to pay the City for
costs that might be conneeted with this operation in the event it does
beeome a problem.
Mr. Carlson stated he was not willing to put in a dollar amount or to
assure this, but they have insurance coverage iF they were destroying an
ad,7acent property.
Mr. Flora stated, personally, he didn't think this would be an expensive �
item to provide the detention pond and weir as Park Construction probably
already has 95$ of this on their site.
Mr. Carlson stated he is not asking for a permit to pollute any water, but
didn't want to go into an expensive system. He stated, if it is something
within reason, they would be willing to cooperate with the City.
UPON A VOICE VOTE TAKEN ON THE ABOVE AMENDMENT TO THE MOTION, all voted
aye, and Mayor Nee declared the motion carried unanimously.
UPON A VOICE VOTE TAKEN ON THE MAIN MOTION, all voted aye, and Mayor Nee
declared the motion carried unanimously.
CONSIDERATION OF RECOMMENDATION THAT JAY PARK BE ADDED TO APPROVED GENERAL
SKATING AREAS FOR 198�-84 IN RESPONSE TO PETITION 9-82 (TABLED 12/6/82):
MOTION by Councilman Fitzpatriek to coneur with the unanimous
recommendation of the Parks and Reereation Commission and Planning
Commission to put Jay Park on the list of those that would have a general
skating area in the 1483-84 season. Seconded by Councilman Barnette.
Councilman Schneider questioned what criteria was used in determining
where an ice rink should be provided.
Councilman Fitzpatrick stated one of the points made in this paticular �
request is that there are 50 to 60 elementary shcool children and when the
decisions were made where to provide ice skating areas, these children
were gre-sehoolers.
Councilman Hamernik stated the Commission felt the area is bounded by
ma�or artery areas and not convenient for those children to walk to other
areas.
UPON A VOICE VOTE TAKEN ON THE ABOVE MOTION, all voted aye, and Mayor Nee
deelared the motion carried unanimously.
C9[�L$SPERATION OF APPOINTMENT TO ENERGY COMMISSION (TABLED 72/6/82):
MOTION by Councilman Fitzpatriek to table this appointment to the Energy
Commission. Seconded by Councilman Schneider. Upon a voice vote, all
voting aye, Mayor Nee declared the motion carried unanimously.
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COUNCIL MEETING OF DECEMBER 20. 1982
RECEIVING PLANNING COMMISSION MINUTES OF DECEMBER 8� 1982:
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LOT SPLIT REOUEST. L. 5. dk82-D7 SY DENNIS & CHRISTINE MORLEY. 1524
OSBORNE ROAD TO MAKE A NEW BUILDING SITE AT 7675 BRIGADOON NE:
Mr. Flora, Public Works Director, stated the property is located between
Brigadoon Place and Osborne Road. He stated the owners, Mr. and Mrs.
Morley, have requested the lot be split in order to provide another
� buildable lot. He stated this meets all the zoning requirements,
including a 25 foot easement for streets and utilities.
Mr. Flora stated the Planning Commission has recommended approval of the
lot split, however, staff would recommend, in conneetion with the lot
split, the driveway be paved. He stated there is a considerable amount of
expense involved with driveways that aren't surfaced because they increase
street maintenance, sewen eleaning, and aecrease safety on the traveled
street.
Councilman Schneider stated he recognizes there is a financial hardship
involved with this request,
Mrs. Morley stated there is no way any of the sand or debris from their
driveway goes onto Osborne road and, in fact, �ust the opposite occurs
because their lot is lower than the street.
Mr. Qureshi suggested possibly they could provide this paving at the time
Os6orne Road is improved.
MOTION by Councilman Sehneider to concur witki the recommendatxon of the
Planning Commission and grant lot split, LS ��82-07, with the understanding
that a$500 park fee will be paid at the time the lot is sold. Seconded
by Councilman Fitzpatrick. Upon a voice vote, all voting aye, Mayor Nee
� deelared the motion carried unanimously.
APPEALS COMMISSION ITEM, MEETING OF NOVEMSER 16. 1982 - VARIANCE
REQUEST FOR A FREE STANDING SIGN TO BE INCREASED FROM 144 SQUARE
FEET TO 216 SQUARE FEET SO A NEW TENANT CAN SE ADDED TO SIGN, 755
S�RD AVENUE NE. TARGET AND NORTHWEST FABRICS. BY C. M. LERSERG.
NORDOUIST SIGN COMPANY:
Mr. Flora, Public Works Direetor, stated the current sign ordinance limits
free standing signs to 80 square feet. He explained the build�ng on the
south portion of Target has been rented to Northwest Fabries and because
of the distance they are located from the street, they are requesting to
put their sign underneath the Tar�et sign.
Mr. Flora stated in 1967, the City issued a sign per�it to allow Target to
construct a 310 square foot sign, however, when the sign was redone, the
square footage was reduced to 144. Mr. Flora stated the variance
requested now is to add 72 square feet to the sign, making a total of 216
square feet.
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COUNCIL MEETING OF DECEMBER 20. 1982 PAGE
Mr. Flora stated the Appeals Commission did recommend approval of this
variance.
MOTION by Councilman Hamernik to concur with the recommendation of the
Appeals Commission and grant the varianee for the free standing sign to
increase it from 144 square feet to 216 square feet. Seconded by
Councilman Fitzpatrick. Upon a voice vote, all voting aye, Mayor Nee
deelared the motion carried unanimously.
APPEALS COMMISSION ITEM� MEETING OF NOVEMBER �D, 1982 - VARIANCE �
REOUEST FOR A FREE STANDING SIGN TO BE INCREASED FROM 159 SOUARE
FEET TO 191 SOUARE FEET� GRADY MeCORKEL. ARROW SIGN COMPANY FOR
BURGER KING. 6410 UNIVIERSITY AVENUE:
Mr. Flora, Public Works Director, stated free standing signs are limited
to 80 square feet under the sign ordinance. He explained the nequest from
Burger King is to add the addition of a reader board to advertise their
sales.
Mr. Flora stated in 1969> the City approved a 154 square foot sign,
however, it was recently brought to their attention the sign was increaeed
to 191 square feet, with the addition of the reader board. He stated
Burger King was advised to come in and request a variance for this sign.
Mr. Flora stated the Appeals Commission felt there was a proliferation of
signs in this area and recommended, through the Planning Commission,
denial oF this variance to which the Planning Comraission concurred.
Mr. Ranek, representing Burger King, stated the 159 square foot Burger
King sign had an additional 2 x 12 foot "drive through" sign underneath
it. He stated they removed the ��drive through" sign and in its place, put
up a 32 square foot reader board.
He stated, when the corporation decided the reader board was necessary, �
they instructed the sign eompany to get the necessary permits before they
put it up and, apparently, these permits were never taken out.
Mr. Ranek stated, basically, they are requesting a 5� inerease in the
square footage and what was presented to the Appeals Commission was a
variance from 159 square feet to 19� square feet, but what they now have
is 167 square feet.
Councilman Fitzpatrick questioned the figure of 191 square feet. Mr.
Flora stated the sign permit allowed a logo ("Burger King" sign) and after
the logo was installed, a"drive throughTM sign of 2�1 square feet was put
up, however, the City looked a this "drive through" sign as a directional
sign, and did not require a permit. He stated this direetional sign of 24
square feet was replaced with the reader board sign of 32 square feet,
making a total of 191 square feet (159 s4uare feet for the logo sign and
32 square feet for the reader board).
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Mr. Ranek stated he understood the "drive through" sign was included in
the 15g square feet. Mr. Flora explained that this was an additional 24
square feet to the logo sign.
Mr. Ranek stated, sinee the reader board sign has been there, they have
seen a 3o� increase in sales. He explained this store is not one of the
better ones, as far as sales, so they welcome the inerease.
� Councilman Sehneider asked about the possibility of reducing the logo
sign.
Mr. Ranek stated they would be spending more money, if they reduced the
existing logo sign, and it would eliminate the limited visibility they
have now.
Mr. Ranek stated the increase in sales is good For Burger King, as well as
the community, as they hire more people and increase the tax base. He
stated they currently employee 60 students, as well as housewives who work
on a part-time basis.
Mayor Nee asked if the sign company installing this sign was licensed in
Fridley.
Mr. Flora stated they were licensed, however, he is presuming when they
removed the "drive through" sign and replaced it with the reader 6oard,
they thought it was a one-for-one exchange. He stated the sign company
should have come in for the permit.
Mr. Ranek stated the sign company went to one of the city inspectors
explaining what they wnted to do and they were, basically, told that it
was a one-for-one switch, and to go ahead and they didn't think there
would be any problems with it.
� Councilman Fitzpatrick stated the reader 6oard does change the character
of the sign from a darectional sign to an advertising sign,
Mr. Ranek felt they do have a hardship, as they don't want to close any
stores, and the reader board has added at least 30$ to their sales.
Councilman Hamernik asked Mr. Ranek iF he felt this sign would be for a
short term.
Mr. Ranek stated he didn't feel it would be, as the company continues to
come up with different menu items and promotions for which the reader
board is used.
Councilman Schneider asked at what point in time they would be willing to
come into compliance with the ordinance to reduce the signs to 80 square
feet. Mr. Ranek stated he was not aware this is a requirement.
Councilman Schneider stated if they were to build a Burger King in that
location today, the maximum size of the sign allowed would be 80 square
feet.
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COUNCIL MEETING OF DECEMBER 20. 1982
Mr. Yancey, representing Burger King, stated if the Center
goes through, they will build their store in another location
requirements of the ordinance would then be met.
PAGE 10
City pro�ect
and all the
Councilman Schneider asked if they would be willin� to bring the sign into
compliance in two years. Mr. Ranek stated if the Center City pro�ect does
not go ahead, they would be willing to come into compliance with the sign
ordinance in two years.
Mr. Ranek stated he would ask the Council to take a second look at the
hardship they are facing and what they have been able ta accomplish with
this sign in order to alleviate that hardship, Ae stated they are trying
to stay in business and keep people employed, and didn't know if this was
brought out at the Appeals Commission meeting. Mr. Ranek stated he was
sure the figures of a 30$ inerease in sales, with the addation of this
reader board, were not available at the Appeals Commission meeting.
Mayor Nee asked if they could recoup their costs for this sign in six
months.
Mr. Ranek stated this is normally set up over a two year period.
Mayor Nee stated he hated to see them lose by eliminating the sign, but
has a problem as they will probably receive similar requests from all over
the City.
Councilman Hamernik suggested a deadline date of September 1, 1983 where
they either come into complianee with the ordinance or take down the
reader board sign.
Mr. Ranek stated he would be in agreement with Councilman Hamernik's
suggestion of having thas sign until September, 1983 and at that point,
either take down the reader board and put the "drive through" directional
sign baek up or come into compliance with the sign ordinance.
MOTION by Councilman Hamernik to allow Burger King until September 1, 1983
to either bring their sign into compliance with the 80 square feet or take
down the reader board. Seconded by Councilman Fitzpatriek.
Councilman Schneider felt staff should send a letter to the sign company
asking what happened in this case or, if it is a City problem, find out
who the sign company had contacted in the City.
UPON A VOICE VOTE TAKEN ON THE ABOVE MOTION, all voted aye, and Mayor Nee
declared the motion carried unanimously.
MOTION by Councilman Schneider to receive the minutes of the Planning
Commission Meeting of December 8, 19SZ. Seconded by Councilman Barnette.
Upon a voice vote, all voting aye, Mayor Nee declared the motion carried
unanimously.
RECEIVING THE CASLE TELEVISION COMMISSION MINUTES OF THE MEETING OF
NOVEMBER 4. 1982:
MOTION by Councilman Fitzpatrick to receive the minutes of the Cable
Television Commission Meeting of November u, 1982. Seconded by Councilman
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COUNCIL MEETING OF DECEMBER 20. 1982 PAGE 11 �� r_,� ?
Hamernik. Upon a voice vote, all voting aye, Mayor A�ee deelared the
motion carried unanimously.
RECEIVING THE MINUTES OF THE POLICE CIVIL SERVICE COMMISSION MEETING OF
1q82:
MOTION by Councilman Hamernik to receive the minutes of the Police Civil
Service Commission Meetings of 1982. Seconded by Councilman Fitzpatrick.
Upon a voice vote, all voting aye, Mayor Nee deelared the motion carried
unanimously.
CONSIDERATION OF SURETY BOND AMOUNTS FOR THE FIRE ftELIEF ASSOCIATION
SECRETARY AND TREASURER:
MOSION by Councilman Schneider to concur with the surety bond amounts for
the Fire Relief Association Secretary and Treasurer. Seconded by
Councilman Barnette. Upon a voice vote, all voting aye, Mayor Nee
declared the motion carried unanimously.
CONSIDERATION OF ERTENDING THE ANIMAL CONTRQL CONTRACT WITH MAPSI:
Mr. Qureshi, City Manager, stated an animal eontrol contract has been
negotiated with MAPSI for 1983, Mr. Qureshi stated the Publie Safety
Director, Mr. Hill, feels it is a reasonable contract, under the present
conditions, He pointed out if the City comes up with something better,
the contract can be caneelled in 30 days by either party.
Mr. O,ureshi stated MAPSS has provided service to the City for a number of
years, however, it is now recognized and they are under ownership.
MOTION by Councilman Barnette to approve the contract negotiated with
MAPSI for animal control services for 1983• Seconded by Councilman
Hamernik. Upon a voice vote, all voting aye, Mayor Nee declared the
motion carried unanimously.
RECEIVING BIDS AND AWARDING PACKAGE PROPERTY AND CASUALTY INSURANCE (BIDS
OPENED 12/8/82):
MOTION by Councilman Schneider to receive the bids.
Property-
Casualty
Liquor
Actual
Amounts
1982
$217,412
Home
$2150
Jefferson
Rice Creek
$167,96�+
Home
Included
Transcontinental
$154,413
Home
$5578
Carolina
Casualty
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COUNCIL MEETING OF DECEMBER 20. 1982
(BIDS CONTINUED)
Umbrella
Public
Officials
($7,000,000)
Police
Professional
($500,000/claim)
Property-
Casualty
Liquor
Umbrella
Public
Officials
($1�OOD,000)
Police
Professional
($5DO,D00/claim)
$9790
Midland
$3962
Western
$10,870
Sransit
Casualty
$244,184
T.C. Field
$190,413
LMCIT
$5900
Ttain City Fire
��1r500�000)
$3035
LMCIT
($500,000)
Included
$199,3�+8
$5000
Integrity
+1000
+$1D0
�$7r500�000)
$3678
International
Surplus Lines
$z835
Atlanta
International
($700,000)
or
$4785
American Home
$176,527
Kelly
None
$5150
St. Paul
$6922
St. Paul
�:S_H_?iFa
$2200
Mission
($1,000,000)
$3D08
Western
$�+�+90
Jefferson
or
$6000
Transit
Casualty
$169,689
LMCIT
Nat'1 Union
Employee
Henefit
$190,542
Included
None
$3035
LMCIT
($500,000)
Included?
a$10D0 additional for $300,OD0 instead of $500,OD0 underlying limits and
$100 for police professional coverage
b $161,969
7,, 551
$154,473
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COUNCIL MEETING OF DECEMBER 20. 1982 PAGE 14
Seconded by Councilman Barnette. Upon a voice vote, all voting aye, Mayor
Nee deelared the motion carried unanimously.
Mr. Inman, City Clerk, stated the Council has a memo from the City Manager
regarding the comprehensive review made of the City's risk management
procedures.
� He further stated that he, Jim Hill, Sill Hunt, and Tony Roach served on a
special task force for this purpose and the city contracted with Control
Data Business Advisers, Ine, and Dr. Whitman, as a special consultant, in
- drawing up bid specifications for the insurance package and evaluating the
bids received.
Mr. Inman stated the City has rebid the entire insurance package, although
not required to do so. He stated, based on the low bid from
Transcontinental Srokers, it is recommended they be awarded the bid for
all City insuranee coverages.
Mr. Inman stated there would be a final submission of documents which will
not materaally affect the bid amount, and pointed out this bid will amount
to a savings of $74,495 over the premium for 1982.
Dr. Whitman, special consultant, stated the eoverages are basically the
same, but there are some improvements in certain areas.
Mayor Nee stated cutting the cost by about $70,000 certainly suggests they
were overpaying last qear or won't be adequately covered now.
Dr. Whitman stated the cost reductions resulted from several things; a
well-managed bid process, competition right now with the insurance
eompanies, as well as a better loss experiance in going into this bid
process, particularly in the area of workmen's compensation.
� Ms. Barb Aune, 389 Riee Creek Terrace, representing the Rice Creek Agency,
stated she would like to propose that the insurance for the City be split
between their agency and Transcontinental Brokers for the following
reasons: (1) the insuranee has been split for the past three years with
no problems and they have been writing the umbrella and Transcontinental
was writing the rest of the insuranee; (2) they feel they have been
unfairly treated in the past in regard to the City's insurance; (3) the
Rice Creek Agency is a Fridley business and everyone in their office lives
in Fridley, and she and Jim Black have lived in Fridley for the past 20
years and had their business here for this geriod of time; (4) they are
located next door to the City Hall and in an excellent position to be in
daily contact with the City's insurance needs; (5) details of the
insurance program can be initiated between them and Transcontinental
before the expiration date of January 1, 1983; (6) the City has the option
to change insurance agents at any time; and (7) the City has an obligation
to support Fridley businesses.
She questioned how the City can expect the Center City project to sueeeed
without supporting loeal business, She stated the Rice Creek Agency is in
Fridley and their personal investment in the Center City pro�ect shows
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their long-term commitment to Fridley. She stated they are part-owners an
the new Plaza office building and plan to move their offices into this
building when completed, and the Rice Creek Agency would like the
opportunity to work hard for the City.
Couneilman Schneider asked if they could provide the same services for the
same price.
Ms. Aune stated their bid is higher because it includes the liquor
liability and their quote was from another company.
Mr. Blaek of the Rice Creek Agency stated the liquor liability is always �
in a separate policy. He stated Transcontinental's bid was $60,000 and
theirs was $62,000.
Mr. Black stated they were assured by Home they were getting the same
quote as Transcontinental.
Dr, Whitman stated at the bottom of Table 3, under footnote b, there is a
figure of $7,551 which is what Home charges for the liquor liability. He
stated Transcontinental obtained the same kind of coverage, through
another carrier, for a lower premium. He stated the City could take the
liquor coverage with Home or Carolina Casualty, as the coverage is the
same.
Mr. Dale Hadtrath, representing Transcontinental Brokers, stated he has
lived in Fridley for 25 years and has tried hard to service the City on
their insurance needs.
He stated the Transcontinental bid is $6,000 lower and the Rice Creek
Agency would be paying another agent or commission to go through
Transcontinental as a broker.
Mr. Inman, City Clerk, stated the umbrella was previously awarded to the
Rice Creek Agency because they were the low bidder and pointed out, the
umbrella doesn't require any correspondenee with the company, other than �
passing the original cheek, unless there were some claims. He stated if
the Council was to split the bid, he would like a chance to comment on the
administrative problems.
Mr. Herrick, City Attorney, stated the City is not required to bid the
insurance, but onee it is bid, the council is required to make the award
to the low bidder. He stated if there was an award of coverage to anyone,
other than the low bidder, this may be a problem.
Mayor Nee stated another question as if they can amend the bid, after it
is reeeived.
Dr, Whitman stated sever�l parts of the bid are focused on the
capabilities of a servicing ageney and the service an agent can provide.
He stated the specifications not only deal with price, but also service
and coverage.
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COUNCIL MEETING OF DECEMBER 20, 1q82 PAGE 15 ��r c� �
He stated one of the things that is zmp�rtant is the experience of the
agency in this type of business and Transcontinental has a lot more
experience in governmental business. Dr. Whitman stated one of the
funetions an agency provides is to search the market and obtain the best
price and, if a servicing agent has a larger volume of business, they have
more bargaining power.
➢r. Whitman stated there has been some problems in splitting the coverage,
as there was a duplication, and this probably arose because there were two
different agents. He stated there is not doubt in his mind the City is
better having one prineipal servicing agent.
Mr. Black stated the has been following this biding procedure for many
years and the City has continually found it necessary to hire consultants,
and this is reason enough to show that a ehange may be needed. He felt
there were some mistakes being made in the City's whole proeedure, and th
staff should be capable of drawing up the specifications.
Dr. Whitman stated, in terms of service, there will be less need for a
consultant in the future because for the first time, a list of serviees is
included.
Councilman Hamernik asked if it was stipulated in the bid that coeerage
could not be split. Dr. Whitman stated legally it could be done, however,
economically it isn't a good decision.
Dr. Whitman stated to write-up and meet these specifications takes a lot
of work and all the agents involved deserve a commendation. He stated when
you come down to �ust the cost criteria, there is no way he can see that
the Rice Creek Agency could be low the waythe bids were submitted.
MOTION by Councilman Barnette that the bid for property and casualty
insurance for the City be awarded to the low bidder, Transcontinental
Brokers, for all coverages, contingent upon final submission of documents
which xill not materiallq affeet the bid amount. Seconded by Councilman
Hamernik, Upon a voice vote, all voting aye, Mayor Nee declared the
motion carried unanimously.
RECEIVING BIDS FOR FRIDLEY COt�fUNITY PARK SPORTS LIGHTING PROJECT (BIDS
OPENED 12/1�/82):
MOTION by Councilman Barnette to receive the bids.
CONTRACTOR
Collins Electric
M.J.B. Electric Contraetors
BID FOR LIGHTING
6 FIELDS 4 FIELDS
$300,424.00
$293�670.00
$248,076.00
$253,670.00
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COUNCIL MEETING OF DECEMBER 20. 1982
(BIDS CONTINUED)
Egan MeKay
Gopher Electric Contractors
Structural Contractors
Conservation Systems, Inc
Ridgedale Electric
Hoffman Eleetric
Electrie Service Company
Killmer Electric Company
Electrie Repair
Berg Electric
$321,082.00
$315,678.OD
$3�1,180.00
$324,830.00
$324,367.75
$319,419•00
$338,000.00
$349,200.00
$355,OOO.DO
�344,OD0.00
$258,382.00
$265,678.00
$275,757.00
$275,330.00
$278,353.00
$281,578.00
$286,500.00
$z93>3oD.00
$300,D00.00
$319,o0D.00
PA
The bid submitted by Bacon Electric is not being considered since they
failed to submit a Sad Bond as required in the advertisement and Bid
documents.
Seconded by Councilman Sehneider. Upon a voice vote, all voting aye,
Mayor Nee declared the motion carried unanimously.
Mr. Flora, Public Works Director, stated staff is currently reviewing the
bids and some alternatives. He stated they are working with a consultant
to determine if they should readvertise or award the bid, based on the
ones received.
Mr. Qureshi, City Manager, stated stafF felt the bids were higher than
anticipated and want to review it further.
RESOLUTION N0. 104-1Q82 IN SUPPORT OF CHANGES IN STATE AID FORMULA:
AND
CONSIDERATION OF $100 DONATION:
Mr. 7nman, City Clerk, stated he has been attending meetings of the
Metropolitan Loser's Group whose ob�ective is to change the State Aid
Formula.
Mr. Inman stated in addition to consideration of this resolution to
support a change in the State Aid Formula, a donation of $100 is requested
to cover expenses of the Metropolitan Loser's Group.
MOTIOP by Councilman Barnette to adopt Resolution No. 104-1962 and,
further, to authorize a donation of $100 to the Metropolitan Loser�s
Group. Seconded by Councilman Fitzpatrick. Upon a voice vote, all voting
aye, Mayor Nee deelared the motion carried unanimously.
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COIINCIL MEETING OF DECEMSER 20. 1982 PAGE 17
RESOLUTION NO 105-1982 OF CONGRATULATIONS TO MONSIEUR FERNAND PECHEUX�
MAYOR OF FOURMIES FRANCE, ON HIS RECEPTION INTO THE ORDER OF THE LEGION
� HONOR:
MOTION by Councilman Fitzpatriek to adopt Resolution No. 105-1982•
Seoonded by Councilman Schneider. Upon a voice vote, all voting aye,
Mayor Nee deelared the motion carried unanimously.
REQUEST FROM THE HUMAN RESOURCES COI�fISSION TO APPLY FOR A$1,000 GRANT:
MOTION by Councilman Schneider to support the Human Resources Commission
request and authorize the application for this $1,OOD grant from the
National Year of Disabled Persons Award Competition. Seconded by
Councilman Fitzpatrick. Upon a voice vote, all voting aye, Mayor Nee
declared the motion carried unanimously.
[�iR=J�M��
MOTION by Councilman Schneider to authorize payment of Claims No. 338566
through 351Z07. Seconded by Councilman Fitzpatrick. ❑pon a voice vote,
all voting aye, Mayor Nee deelared the motion carried unanimously.
LICENSES:
MOTION by Councalman Barnette to approve the licenses as submitted and as
on file in the License Clerk's Office. Seconded by Councilman Hamernik.
Upon a voice vote, all voting aye, Mayor Nee declared the motzon carried
unanimously.
ESTIMATES:
MOTION by Councilman Schneider to aprove the estimates as submitted.
Smith, Juster, Feikema, Malmon & Haskvitz
1250 Builders Exchange Building
Minneapolis, MN 55402
For legal services rendered as City Prasecutor
for the month of October, 1982
For legal services rendered as City Prosecutor
for the month of November, 1982
E. A. Hickok & Associates, Inc,
545 Indian Mound
Wayzata, Mn 55391
Professional services, November, 1982
Moore Lake Restoration Pro�ect
Seconded by Couneilman Barnette,
$5,625.00
$4,862.50
$ 950.oy
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COUNCIL MEETING OF DECEMBER 20, 1Q82
�� :
Couneilman Hamernik stated he noticed the fees for the Prosecuting
Attorney have increased.
Mr. Qureshi, City Manager, stated because of the new drunk driving law, it
has inereased the workload substantially, however, the fines the City
receives are more than what they are paqing the Prosecutor.
UPOPI A VOICE VOTE TAKEN ON THE ABOVE MOTION, all voted aye, and Mayor Nee
declared the motion carried unanimously.
MOTION by Councilman Schneider to ad�ourn the meeting. Seconded by
Councalman Barnette. Upon a voice vote, a11 voting aye, Mayor Nee
declared the motion carried unanimously and the Regular meeting of the
Fridley City Council of December 20, 1982 adjourned at 10:40 p. m.
Respectfully submitted,
��r�,,t��� �����
Carole Haddad
Secretary to the City Couneil
Approved: �anuary 10, 1983
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William�J Nee
Mayor ,
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