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09/08/2003 - 00026251CITY OF FRIDLEY CITY COUNCIL MEETING MINUTES SEPTEMBER 8, 2003 The regular meeting of the Fridley City Council was called to order by Mayor Lund at 7:30 p.m. PLEDGE OF ALLEGIANCE: Mayor Lund led the Council and audience in the Pledge of Allegiance to the Flag. ROLL CALL MEMBERS PRESENT: Mayor Lund, Councilmember Barnette, Councilmember Billings, Councilmember Wolfe and Councilmember Bolkcom MEMBERS ABSENT: None PROCLAMATION: Mayor Lund read and presented a proclamation for Patriot Day on September 11, 2003. Mayor Lund read and presented a proclamation for pomestic Violence Awareness Month, October, 2003. APPROVAL OF PROPOSED CONSENT AGENDA: APPROVAL OF MINUTES: City Council Meeting of August 11, 2003. APPROVED. OLD BUSINESS: 1. RESOLUTION NO. 2003-40 DECLARING COST TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT FOR STREET IMPROVEMENT PROJECT NO. ST. 2002-1. Dr. William Burns, City Manager, said the City proposed to assess property owners $109,897.52 of the total project cost of $681,535.83. The assessment was 16% of the total cost. The average cost to the 97 property owners for ten years at 6'/z% interest was $1,132.96. Staff recommended Council's approval. ADOPTED RESOLUTION NO. 2003-40. FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 8, 2003 PAGE 2 2. RESOLUTION NO. 2003-41 DIRECTING PUBLICATION OF THE HEARING ON THE PROPOSED ASSESSMENT FOR STREET IMPROVEMENT PROJECT NO. ST. 2002 — 1. Dr. William Burns, City Manager, said the public hearing was scheduled for October 13, 2003. Staff recommended Council's approval. ADOPTED RESOLUTION NO. 2003-41. 3. RESOLUTION NO. 2003 — 42 DIRECTING PREPARATION OF THE ASSESS- MENT ROLL FOR THE 2003 NUISANCE ABATEMENT. Dr. Williams Burns, City Manager, said the public hearing was scheduled for October 13, 2003. Staff recommended Council's approval. ADOPTED RESOLUTION NO. 2003-42. 4. RESOLUTION 2003-43 DIRECTING PUBLICATION OF HEARING ON THE PROPOSED ASSESSMENT ROLL FOR THE 2003 NUISANCE ABATEMENT Dr. William Burns, City Manager, said the public hearing was scheduled for October 13, 2003. Staff recommended Council's approval. ADOPTED RESOLUTION NO. 2003-43. 5. RESOLUTION CONSENTING TO THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA, ADOPTING A 2003 TAX LEVY COLLECTIBLE IN 2004 Dr. William Burns, City Manager, said the resolution was for the renewal of a 1996 levy to support the HRA's revolving loan program for property rehabilitation. It was a market value levy equal to .0144% of the estimated market value of taxable property in Fridley. The levy cost the owner of a$175,000 home about $25 per year. The levy would generate approximately $247,100 in 2003. The Fridley HRA approved the levy at their September 4, 2003, meeting. Staff recommended Council's approval. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 6. CLAIMS APPROVED CLAIM NOS. 113065 THROUGH 113332. FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 8, 2003 PAGE 3 7. LICENSES APPROVED THE LICENSES AS SUBMITTED AND AS ON FILE. 8. ESTIMATES APPROVED THE FOLLOWING ESTIMATES: Hardrives, Inc. 14475 Quiram Drive Rogers, MN 55374-9461 2003 Street Improvement — Marian Hills Project No. ST. 2003 — 1 Estimate No. 3 $191,897.95 Midwest Asphalt Corp. 5929 Bake Road, Suite 420 Minnetonka, MN 55345 Hickory Drive Watermain Replacement Project No. 350 Estimate No. 1 $ 48,958.40 Creative Curb Contractors LLC 64358 — 375th Street Watkins, MN 55389 2003 Miscellaneous Concrete Repair Proj ect No. 3 51 EstimateNo.3 $ 4,135.45 APPROVAL OF PROPOSED CONSENT AGENDA: Councilmember Barnette asked that Item No. 5 be removed and placed on the regular agenda. Mr. Pete Eisenzimmer, 6535 Oakley Drive N.E., asked if the nuisance assessment would affect all residents. Dr. Burns, City Manager, said that it was a special assessment that was being levied against individuals whose nuisances were abated and did not apply to the City at large. MOTION by Councilmember Barnette to adopt the proposed consent agenda with the removal of Item No. 5. Seconded by Councilmember Wolfe. FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 8, 2003 PAGE 4 UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. ADOPTION OF AGENDA: MOTION by Councilmember Bolkcom to adopt the agenda with the addition of Item No. 5. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. OPEN FORUM, VISITORS: Mr. Blaine Jones, 54 Locke Lake Road N.E., invited Council, staff and the audience to Art at Rice Creek at the Banfill-Locke Center on Sunday, September 14 from 12:00 p.m. to 6:00 p.m. PUBLIC HEARINGS: 9. CONSIDERATION OF INCREASING SANITARY SEWER RATES IN EXCESS OF THE INDEX PROVIDED IN THE FRIDLEY CITY CHARTER MOTION by Councilmember Bolkcom to waive the reading of the public hearing notice and open the public hearing. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Richard Pribyl, Finance Director, said the resolution was for a proposed sanitary sewer increase. Pursuant to the City Charter, any increase in utility rates that would exceed the defined index would need voter approval. The index for 2004 would provide for a 1.8% increase in the rates. The City would like to increase the rate by an additional 7.2% or 17 cents per thousand gallons of waste disposed. With the 1.8% increase, the sanitary sewer fund would incur a loss of approximately $222,000. The City of Fridley experienced a 3 percent increase in the cost of waste water disposal fees and a 6.1% increase in the annual waste water permit fee charged by Metropolitan Council Environmental Services for the discharge of City-wide sewage to their treatment plants. The City requested a rate increase for the sole purpose of reducing the operating loss for the year 2004. In order to provide for the possibility of raising the rates by an additional 7.2% in excess of the index, the resolution that was on the agenda called for an election on this issue. The public hearing notice was published three times. Councilmember Barnette asked why the rates increased. Mr. Pribyl said that in the sanitary sewer fund, the bulk of the expenditures were to Met Council Environmental Services. Dr. Burns explained that the rest of the budget for 2004 was than it was for 2003. FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 8, 2003 PAGE 5 Councilmember Barnette asked if the City had a choice in paying the fee to Met Council. Mr. Pribyl said the fee had to be paid to the Met Council because that was how Fridley got rid of its waste. Councilmember Bolkcom asked how Fridley's rates compared to other cities. Mr. Pribyl said that Fridley was at the lower eighth of the list of inetropolitan communities. The current sewer rate was $2.37 per thousand gallons. The City proposed to increase it to $2.58 per thousand with the 7.2% increase. Councilmember Billings asked if the Charter allowed the City to pass on the costs that were presented by other agencies. Attorney Frederic Knaak, City Attorney, said to the best of his knowledge, any increase in utility rates had to go to the electorate. He said the Charter specifically read that fees included utility charges. Councilmember Billings asked about having a separate line item on the billing statement that delineated the Metropolitan Council charge. Attorney Knaak said because of the language in Chapter 3 of the City Charter, that option would not be available to the City. Councilmember Billings said if the Metropolitan Council raised the fees 50% and the voters of the City of Fridley decided that they did not want to pay that amount, then the fees would need to come from the general budget. Attorney Knaak said they would according to the Charter. Mr. Pete Eisenzimmer, 6535 Oakley Drive N.E., said that any new fees or taxes have to go before the voters. He said the City should pay the additional fees for increased storm sewer charges. Mr. Robert Scattarelli, 661 Marigold Terrace N.E., asked if there would be an advertisement if the item were a balloted question. Mayor Lund said it would be advertised as required. Dr. Burns said the item would also be published in the City newsletter. Mr. Scattarelli asked if the storm sewer charges could only be increased up to 7.2% pursuant to the Charter. Mr. Pribyl said that 1.8% was what the rate could be increased per the City Charter and 7.2% was the amount that would bring the City up to 9% with the voter-approved portion. FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 8, 2003 PAGE 6 Mr. Scattarelli said that he did not want to see the general fund reduced. Dr. Burns said that the City would first take funds from the sewer fund reserves. However, those reserves were set aside for the replacement of depreciated items in the sewer facilities and provided working capital for that fund. Mr. Scattarelli asked what the City would do to recover the additional costs if the referendum did not pass this year. Dr. Burns said that the sewer fund reserves would probably be drawn down or the City could decide not to do some capital improvements. Councilmember Billings said that fee increases should be put on the ballot on the ne�t regular municipal election. He asked Attorney Knaak to define what "the ne�t regular municipal election" meant. Attorney Knaak said the "ne�t regular municipal election" was something that was defined in the City Charter under Section 402. He said there were two essential restrictions: regular municipal elections must be held every even numbered year, although it was not required that they be held only in even number years, and in addition, they had to be held on the first Tuesday after the first Monday in November at such place or places that the City Council designated. Councilmember Billings said that as long as the election was on the first Tuesday after the first Monday in November, it did not make a difference whether it was an even or odd year. It was a regular municipal election as long as it was set by the City Council. Mr. Knaak said that if the City Council set an election on that date, even in an odd numbered year, it was a regular municipal election under the Charter. Mr. Jerold Bahls, 7514 Alden Way N.E., asked if it was counted as a"no" vote if the vote was held on a presidential election year, and the voters missed it on their ballot. He said it would be better to hold the election in 2003 rather than 2004. Attorney Knaak said the City Charter indicated that 51% of all votes cast were needed for the measure to pass. Mr. Scattarelli asked if the voting machines would know if a voter missed a question. Councilmember Billings said the voting machine only read a yes or no vote. It did not read a missed question. Mr. Bahls asked what the cost would be to have an election in 2003 versus 2004. Ms. Deb Skogen, City Clerk, said the cost would be about the same. FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 8, 2003 PAGE 7 Ms. Nancy Jorgenson, 5730 Polk Street N.E., asked if there was any historical data on voter falloff between the presidential year, when the question was at the bottom of the ballot, versus a special election. Ms. Skogen, said there was usually about a 20 to 30% falloff of people who did not vote on City or County issues. Mr. Pete Eisenzimmer, suggested putting it on the ballot in 2004. MOTION by Councilmember Barnette to close the public hearing. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 10. CONSIDERATION OF INCREASING STORM WATER RATES IN EXCESS OF THE INDEX PROVIDED IN THE FRIDLEY CITY CHARTER MOTION by Councilmember Bolkcom to waive the reading of the public hearing notice and open the public hearing. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Richard Pribyl, Finance Director, said in 2004, the City could only raise the storm water rate by 1.8%. The City would like to increase the rate above and beyond the 1.8% by an additional 7.2%. There would be an increase of 88 cents per residential customer per year. The operations for 2002 resulted in a net operating loss of $87,000. It was projected that with the 1.8% proposed increase, the storm water fund would still incur a loss of approximately $80,000. This fund had been experiencing increased costs resulting from federal mandates associated with the national pollutant discharge elimination system. The City of Fridley continued to perform maintenance and upgrades to help protect City streets and neighborhoods from flooding. The City requested a rate increase for the sole purpose of reducing the operating loss for the year 2004. The public hearing notice was published three times. Mr. Robert Scattarelli, 661 Marigold Terrace N.E., asked if this was on the ballot, would there be two questions, one for storm sewer and one for storm water. Mayor Lund said there were potentially three questions. Mr. Malcolm Mitchell, 1225 Regis Lane N.E., asked what it would cost the City if it were not put on the ballot this year. Mr. Pribyl said that in the year 2002, the City lost $87,000. He said there would be an approximate loss of $84,000 for 2004. In 2003, the City would lose approximately $40,000. FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 8, 2003 PAGE 8 Mr. Pete Eisenzimmer, 6535 Oakley Drive N.E., said that the City had to live on the budget according to the Charter. He suggested eliminating some of the parks and building houses on park land. MOTION made by Councilmember Barnette to close the public hearing. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 11. CONSIDERATION OF INCREASING WATER RATES IN EXCESS OF THE INDEX PROVIDED IN THE FRIDLEY CITY CHARTER. MOTION by Councilmember Bolkcom to waive the reading of the public hearing notice and open the public hearing. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Pribyl, Finance Director, said that with respect to the water utility fund, the index for 2004 would only provide for an increase of 1.8% in the rates. The City was asking for an additional 7.2% or 8 cents per thousand gallons above what was allowed by the City Charter. The City needed to upgrade the main water filtration plant to meet stricter guidelines imposed by the Federal EPA for the removal of Radium 226 and Radium 228 from the City's water supply. The City also needed to replace the 1.5 million gallon water storage tank that was constructed in 1953 which provided water pressure to the eastern third of the City. It was projected that with the 1.8% increase, the water fund will incur approximately a loss of $180,000. The City requested a rate increase for the sole purpose of reducing the operating loss for the year 2004. The 7.2% equated to an annual increase of $5.76 per average residential consumer of 18,000 gallons per quarter. The public hearing notice was published three times. If the vote failed this fall, the City would need to use funds that had been set aside for cash flow and replacement of infrastructure. Councilmember Bolkcom asked how Fridley compared to other cities with respect to water rates. Mr. Pribyl said that of the 108 communities that were surveyed, Fridley was the lowest. If this passed, Fridley would be around 106. Dr. William Burns, City Manager, said that the planned appropriation for 2004 was less than what was budgeted for 2003 by about $88,000. Councilmember Billings asked what the cost would be to repair the water tank. Mr. Jon Haukaas, Public Works Director, said that a consultant was hired to conduct a study on repairing the water tank. He said the consultant determined that the tank had deteriorated much worse than was originally thought. The estimated cost to repair the existing tank would be FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 8, 2003 PAGE 9 $650,000 and would last about 15 years. The cost of a brand new tank, with a life expectancy of 75 to 100 years, would be about $550,000. Councilmember Billings asked if the increase was enough to pay for the $550,000 tank. He asked of the fees would be lowered in 2005. Mr. Pribyl said that the cost was spread over future years. In this particular case, the tank had a life of approximately 30 to 50 years. The amount would be spread over the ne�t 30 to 50 years. The tank was paid for in the year in which it was constructed, but on the income statement, the expense was spread over whatever the life expectancy was for the fixed asset. Councilmember Billings said the City was not raising taxes to pay for the tank in one year. The City was raising the rates because that was what it was going to take from now and into the future. Mr. Pribyl said the cost was going to be spread well into the future. If the City needed to pay for the tank in one year and have the rates reflect that, it would be too expensive. Councilmember Bolkcom asked Mr. Haukaas what it cost to repair a water main in the City. Mr. Haukaas said that a water main replacement project that might be done as a capital improvement project would cost $160,000 for a 1,000-foot long water main repair. Councilmember Bolkcom asked if the City would experience more water main replacement projects in the future, since it was an older community. Mr. Haukaas said it would. Mr. Robert Scattarelli, 661 Marigold Terrace N.E., asked what the total increase would be for homeowners if all three rate increases were passed. Mr. Pribyl said it would be approximately $24.00 per year for an average home, based on 18,000 gallons of water per quarter for water and sewer. Mr. Timothy Byrne, 6053 Woody Lane N.E., said that utilities were an essential public service. He asked what would be cut out of the budget. Dr. Burns said there was not much to eliminate out of the budget. It would first come out of the City's reserves. He said when the City lowered the reserves, they were lowering the amount of money for working capital and for other projects. If there was no money in the reserves to serve as security for bonding, the City's interest rate for bonds would be higher. Mr. Byrne said if the election failed, the City would still need to pay for the increase in utilities. If the election was held ne�t year, the City would have more time to decide where to cut the budget. FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 8, 2003 PAGE 10 Dr. Burns said that for one year, it would come out of the utility reserves. He said that even with the rate increase, compared to other communities, the City would have some of the lowest rates. Mr. Pete Eisenzimmer, 6535 Oakley Drive N.E. asked how much was in the reserve fund. Dr. Burns said there was approximately $2.8 million in both the water and sewer reserves. The general fund was around $4 million. MOTION by Councilmember Barnette to close the public hearing. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. OLD BUSINESS: 12. RESOLUTION DECLARING A QUESTION TO BE PLACED ON THE BALLOT AT THE NEXT REGULAR MUNICIPAL ELECTION, TO LEVY A TAX WHICH IS IN EXCESS OF THE INFLATIONARY INDEX FOR TAX LEVY REQUIREMENTS FOR 2004 TO THE COUNTY OF ANOKA FOR COLLECTION FOR THE PURPOSE OF CONTINUING PROGRAMMING AT SPRINGBROOK NATURE CENTER (TABLED AUGUST 25, 2003). MOTION by Councilmember Bolkcom to remove this item from the table. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Richard Pribyl, Finance Director, said the State legislature cut state aid funds during the last legislative session. The total reduction of state aid for 2004 would be $1,103,605. The City was required to provide a draft budget for 2004. One of the major cost reduction plans was to eliminate the naturalist programming at the Springbrook Nature Center. It appeared that a number of citizens would like to see the City place a question before the voters regarding a levy of $275,000 in added taxes to support the programming, maintenance, and administration of the naturalist programming at Springbrook Nature Center. The resolution committed the City to the election process. The public hearing was held on August 25, 2003. The question as presented was: "The Council of the City of Fridley has proposed to increase its tax levy for general City purposes by $275,000 beyond the index limit allowed by the City of Fridley Charter. The additional revenue would be used to fund the administration, maintenance, and programming of the Springbrook Nature Center. The proposed referendum revenue authorization would be applicable as a permanent levy indexed by the same limits imposed on the general tax levy as set out in Section 7.01 of the City of Fridley City Charter." Councilmember Bolkcom said that at the last meeting, staff was asked to come back with some different options. FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 8, 2003 PAGE 11 Attorney Frederic Knaak, City Attorney, said that there were four options and language suggestions for Council's consideration: (1) Leave the resolution language as is which would levy $275,000 which must be spent on the Nature Center, (2) the "up to" option, which was a more flexible option that would designate an amount up to the $275,000, but under the operation of the City Charter, whatever the amount was that was designated would then become a fixed amount that would be subject to the limitations and terms of increases annually on the part of the City Charter, (3) the same as Option No. 2, but included an additional complicating factor which was in order to be able to vary the amount levied from year to year, the City would have to amend the Charter, (4) levy the $275,000 with the understanding that the funds would go into the general fund, but would be utilized for the Springbrook Nature Center. Councilmember Bolkcom asked Attorney Knaak if an election in 2003 would be considered a regular municipal election. Attorney Knaak, said it would. Councilmember Billings asked what happened if the City was able to come up with admission fees or other types of fees. Attorney Knaak, said that issue was raised at the public hearing. The Charter language did not govern fees that were charged for recreational purposes, so those fees could be raised without changing the City Charter. Councilmember Bolkcom asked if the Charter could be amended as a ballot question. Attorney Knaak said there were different ways to amend the Charter. Councilmember Barnette said he felt there was value in postponing the election on Springbrook and the utility issues until 2004. He was in favor of using a limited amount of money during 2003 to keep the Springbrook Nature Center open. Councilmember Bolkcom asked where the funding would come from. Councilmember Barnette said it could come out of reserves. Mayor Lund said that a petition had been signed by many citizens. Councilmember Wolfe said that he did not feel that all of the information that had gotten out about Springbrook Nature Center was correct and some residents had been misinformed. He indicated that he called 123 people who signed the petition and 119 of them thought keeping Springbrook a passive park was a good idea. He stated if there were 3,000 people who supported Springbrook Nature Center, it would cost each of those people $7.65 a month to keep the programming open at Springbrook Nature Center. Mr. Malcolm Mitchell, 1225 Regis Lane N.E., Chair of the Springbrook Nature Center Foundation Board, said they were very interested in getting information out that was as accurate FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 8, 2003 PAGE 12 as possible. He said the petition was clear. He said 3,000 people signed the petition, but that was not all of the households in Fridley. He said they were interested in an election this year. It would save the City money. He said the City should let the voters decide this fall. Councilmember Wolfe said that what was written on the petition was correct, but people were told different things. Mr. Mitchell said the purpose of the petition was to ask the City Council to put the issue on the November ballot. Councilmember Wolfe said that 119 people were told that Springbrook was being shut down completely. They were not told it was going to be a passive park and when they found out, they were fine with it. They thought it was going to be shut down completely. He said Councilmember Barnette mentioned partial funding. If that was the case, the position of every person who was being let go from the City should be funded. Mr. Mitchell said to let the people decide. Mr. Richard Coleman, 188 River Edge Way N.E., said that with respect to changing the resolution language, he could not support putting the referendum money into the general fund. He asked what the Parks and Recreation budget was for the upcoming year. If Springbrook was included with that, it would allow some of the funds to be redirected so less money would have to be spent from the general fund toward other parks and recreation items. It might give the City more flexibility. Dr. William Burns, City Manager, said the 2004 budget for Parks and Recreation was $776,203. Mr. Coleman said if the language was added, it would be for greater flexibility in working with the funds from the levy. Attorney Knaak said the City could add language to include other parks so that the language would read, "the additional revenue would be used to fund administration, maintenance and programming of Springbrook Nature Center and other park and recreation programs in the City." Councilmember Bolkcom asked if the Springbrook supporters would be concerned with the amount of the referendum the City would use for Springbrook and that some of it might be used for other parks. Mr. Coleman said trust would have to exist between the citizens and the City CounciL Most people would be concerned if the referendum money went into the general fund that it would get lost in a large pool of money. This would be a compromise, and most of the supporters would be more comfortable if the money was earmarked for parks and recreation and the preservation of Springbrook Nature Center. Councilmember Bolkcom said there was concern about where the money was that the Foundation raised, how much was being spent and how much revenue came from programs. FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 8, 2003 PAGE 13 Ms. Patricia Freeburg, 5557 East Danube Road N.E., said her home backed up against Farr Lake Park Two years ago the walkway subsided two feet in one section and she called to get the walkway fixed. One year later, they put in one foot of blacktop. She said it was still a hole. She said if the City could not maintain that park, the City would not maintain Springbrook as a passive park. Dr. Burns said there was $30,000 budgeted in 2003 in the capital improvements fund to rebuild the path in Farr Lake Park, but the City decided as a budget cutting measure, not to do the project. He said one of the reasons more work had not been done at that park, was that it had been identified as a capital improvements project for replacement. Mr. Pete Eisenzimmer, 6535 Oakley Drive N.E., suggested that the City solicit donations from big organizations. Mr. Pete Meyerhoff, 1350 Hillcrest Drive N.E., said that by eliminating the programming and the staff at Springbrook, you would effectively be closing it. He said he supported putting a referendum on the ballot in 2003. Ms. Jeanette Lindquist, 1326 Hillcrest Drive N.E., said it bothered her that people who were not residents of Fridley signed the petition. She thought maybe some other cities should contribute. Councilmember Wolfe said that no other city they had spoken with would contribute toward the Springbrook Nature Center. Councilmember Bolkcom said there were a lot of other communities who used the Nature Center, but there were also a lot of people from other communities who volunteered at the Nature Center. She said she asked some of the people who sent her e-mails if they lived in the City of Fridley, and if not, would they be willing to pay a user fee or parking fee. People who did not live in the community said they were more than willing to pay a user fee and a parking fee. There are also people who use Moore Lake who do not live in the City. People use our softball fields and soccer fields and although they pay a league fee, they use our parks. She thought the whole idea behind the petition was not only to show the people who were actually eligible to vote, but to show that there was wide-range support from other communities. Mr. Robert Scattarelli, 661 Marigold Terrace N.E., asked how long it would take to recoup the funds taken out of the general fund for Springbrook. Dr. Burns said that the City was already deficit financing and had been for a number of years. Over the last five years including 2004, the City used $5 million. There was no way to make up that money. The State legislature limited the amount of property taxes that could be levied back. The City was allowed to levy back 60% of the lost 20041oca1 government aid; however, the City could not levy back the 2003 losses. There was no guarantee that the City would be able to levy back 2005. The City had very few other revenue tools. Property taxes were pretty much it. Fridley was a fully evolved community, so the City could not gain tax base by an aggressive economic development effort. He said much of the City's economic development was cash-user FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 8, 2003 PAGE 14 rather than cash-gainer because redevelopment cost much more money than it ever would bring in. Mr. Scattarelli said he supported holding the election in 2004 because it would be more fair to the voters. Councilmember Bolkcom asked what should be done with the Nature Center if it was not put on the ballot this year. Mr. Scattarelli said he would put some of the money back and try to keep it open as best he could in the interim until the election. Mr. Stan Mraz, 6180 Benjamin Street N.E., said he spoke on behalf of the children. He said his son would be visiting the Springbrook Nature Center with his school, and was elated to be taking his first field trip there. He said the Nature Center had education programs for many people. The City needed to keep the Nature Center with whatever measures are necessary. He said the City needed to look to the future on behalf of the children. Mr. Richard Lindquist, 1326 Hillcrest Drive N.E., asked if a study had been done on how many people went to Springbrook during the year and how much would the user fee should be. Mayor Lund said there were about 150,000 visits to Springbrook or 22,000 different people making the 150,000 visits, but it was unknown about user fees. Mr. Don Anderson, 8429 Fridley Terrace, said he worked at the Work Force Center asked why the City was laying off workers at the Nature Center. Mayor Lund said it cost money and they were looking at ways to cut the budget. Councilmember Bolkcom said money was used to maintain the trails. Councilmember Billings said there are a number of options. He said he would like to see the City Council fund Springbrook Nature Center in the amount of $175,000 through the budget process and initiate user fees. If there were 150,000 using the Nature Center, he believed $75,000 could be raised in user fees. The two amounts combined would be $250,000 and at that level, $30,000 to $40,000 could be raised in other use fees from the current programs. By July and August of ne�t year, the City would have a better picture of what needed to be put on the ballot. He said he did not want to deny the citizens an opportunity to vote, but they should have the opportunity to vote on numbers that had been tried instead of the full $275,000. He said they needed time to look at all of the possibilities and options for Springbrook, including user fees, and possibly occupational-related therapy. Giving it a year and partially funding it and charging user fees was the first step in that direction. Councilmember Barnette asked the City Attorney if there was a problem legally if they passed a resolution to place this matter on the ballot in November of 2004. FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 8, 2003 PAGE 15 Attorney Knaak said there would not be a problem. Councilmember Bolkcom asked if there was a problem with including language that said up to $275,000. Attorney Knaak said there was nothing that required that an amount be set immediately. At some point the County would need to be told what the levy would be. If the assumption was that it would be put on the ballot, the "up to" language would keep it flexible. If the amount was not set, a levy could not be set. He said the "up to" language avoided the issue of $275,000 regardless of whether it was determined that amount was needed. It deferred the decision of what the amount actually was up to the point that it was actually levied. Councilmember Barnette said he was in favor of partial funding and putting it on the ballot in November, 2004. He said if it went to the ballot and did not pass, it would become a passive park. Councilmember Billings said if they were able to raise money through user fees, if they were able to trim expenditures without damaging the programs too much and if they were able to get money from other sources, an amount lower than $275,000 could be put on the ballot. Councilmember Bolkcom asked if a resolution would be passed that said it would be put on the ballot in 2004. Councilmember Billings asked if a resolution was passed for up to $275,000 to go on the ballot at the regular municipal election of 2004, would that language go on the ballot. Councilmember Bolkcom asked if the resolution could be amended ne�t year. Ms. Deb Skogen, City Clerk, said the resolution that was on the agenda was for the 2004 budget levy year. If it was going to be postponed, there was no need to pass the resolution. Councilmember Barnette asked if it could be done in a year. Attorney Knaak said it could if that was the ne�t regular municipal election. If there was a regular municipal election this year and the resolution passed, it would have to be on the ballot. Councilmember Barnette said he would support delaying the decision for a year if the utility referendums were also delayed for a year. Ms. Skogen said a question had been asked earlier about the falloff from the presidential election of 2000. She said there was a 13.8 percent falloff from the presidential vote to the mayor vote, for councilmember-at-large there was a 19 percent falloff, and for the charter amendment, there was a 10 percent fallof£ She said if a resolution was adopted to put the matter on the ballot in 2004, the tax levy requirements would be for 2005 and not 2004. FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 8, 2003 PAGE 16 Mr. Mitchell said that the Foundation and the supporters of Springbrook would prefer that a motion be made for an election in 2003. He said it was important for Council to make their intent clear. It was essential that 2003 funding be e�tended for 2004. He stated they were willing to do their share. His recommendation was that they look at a 12% cut off the $300,000 amount. He said they felt it was important to maintain three things. The first was the revenue stream that was Springbrook Nature Center's contribution back to the general fund. The second was the programs that were offered. The third was the staff. Cutting one would affect the others. He suggested the amount of $210,000 rather than $175,000. The Foundation Board would commit to help raise the difference. They felt that if the programs were cut significantly before the voters had a chance to decide, they would in effect be making a decision for the voters. He said with respect to Councilmember Billing's proposal, it would initially be hard to initiate and raise $75,000 in fees in one year. Councilmember Wolfe said if there were 150,000 visitors and they were charged $1.00, it would be more than that amount. Mr. Mitchell said there were costs to administering the fees. Councilmember Bolkcom said there was a budget work session that would be held in October and there was some time before that meeting to work together. Mr. Mitchell agreed but said he disagreed with the determination that $175,000 would maintain the programs. Councilmember Billings said he suggested $175,000 from the general fund and suggested that $75,000 could be raised in user fees based on the numbers that were given to the City Council. The total would be $250,000. Mr. Mitchell asked that they look at the amount of $200,000 plus the $50,000 in revenue that was there and the difference being made up of fees and any other kind of revenue. He said they would work with Council but were getting frustrated with the process. Councilmember Bolkcom said that Springbrook had not been cut from anything over the nine years she had been on the Council. She said they needed to work together on this matter. Dr. Burns said that when the budget was prepared, they had a very good reason to believe that there was a serious financial problems with the cuts from the state level. There have also been some changes since June when we first looked at the budget. Other cities have indicated that they would have employee cost of living adjustments. Health insurance rates would be 16 to 25 percent more than what we thought they would be. We may not get grant money for breathing apparatus for the firefighters. He said to say they were going to spend money on the Springbrook Nature Center without comparing that with the other priorities was not in the best interests of the City. Councilmember Barnette asked if a resolution was adopted placing it on the November, 2004, ballot, could the figure of "up to" $275,000 be left in the language. FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 8, 2003 PAGE 17 Mayor Lund asked if a motion could be made to commit to a referendum in 2004 but not include a dollar amount. Councilmember Barnette said a dollar figure would have to be included. Attorney Knaak agreed. Councilmember Billings said the Mayor suggested that we pass a resolution committing that the City Council would put some number on the ballot in 2004. Councilmember Bolkcom asked if that could be done with a time certain included. The present resolution would be tabled and a resolution adopted which indicated support for the 2004 ballot question and that the language would be provided no later than July of 2004. She said there would be an opportunity before the ne�t budget work session to work on a dollar amount. MOTION by Councilmember Bolkcom to table the Resolution Declaring a Question to be Placed on the Ballot at the Ne�t Regular Municipal Election, to Levy a Tax which is in Excess of the Inflationary Index for Tax Levy Requirements for 2004 to the County of Anoka for Collection for the Purpose of Continuing Programming at Springbrook Nature Center. Seconded by Councilmember Wolfe. Attorney Knaak said they could table the resolution for a time certain. He said it would put this specific item on the agenda in July. Mr. Mitchell asked what it did for the ability of the Springbrook Foundation to raise money from other sources when there was no figure to use as a base. Councilmember Bolkcom said they would after they have had a chance to meet. Councilmember Wolfe asked if the goal would be to raise as much as possible every year. Mr. Mitchell said that what Council seemed to be saying was that whatever money they raised as a Foundation would get put back into the operating budget of Springbrook Nature Center. The purpose and mission of the foundation was to help with that. Councilmember Billings said that in his proposal he said $175,000 from the general fund and $75,000 from admission fees. He did not want the Nature Center to depend on contributions from outside sources or the ability of the Springbrook Foundation to raise funds in order to be able to keep the operation going. He said he was talking about finding ways of financing the operations, the maintenance, etc., from tax dollars and from admission or user fees. He said he did not think this was a departure from what people were used to. Other parks charged fees. MOTION by Councilmember Bolkcom to table the Resolution Declaring a Question to be Placed on the Ballot at the Ne�t Regular Municipal Election, to Levy a Tax Which is in Excess of the Inflationary Index for Tax Levy Requirements for 2004 to the County of Anoka for Collection for the Purpose of Continuing Programming at Springbrook Nature Center until the FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 8, 2003 PAGE 18 first meeting in July, 2004, and direct staff to make the necessary updates in the language. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION by Councilmember Billings: Be it resolved that the City Council for the City of Fridley, Minnesota, intends to place an item on the November, 2004, ballot regarding funding for Springbrook Nature Center. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 13. RESOLUTION NO. 2003-44 CERTIFYING PROPOSED TAX LEVY REQUIREMENTS FOR 2004 TO THE COUNTY OF ANOKA (TABLED AUGUST 25, 2003). MOTION by Councilmember Bolkcom to remove this item from the table. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION by Councilmember Billings to adopt Resolution No. 2003-44 and amend it by striking the line "General Fund (Additional Levy for Springbrook Nature Center) $275,000" and change "Total All Funds" to $6,483,745. Seconded by Councilmember Ann Bolkcom. Councilmember Bolkcom asked if that was the maximum amount that could be levied. Dr. William Burns, City Manager, said it was. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 14. RESOLUTION NO. 2003-45 ADOPTING THE PROPOSED BUDGET FOR THE FISCAL YEAR 2004 (TABLED AUGUST 25, 2003). MOTION by Councilmember Billings to remove this item from the table. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 8, 2003 PAGE 19 MOTION by Councilmember Billings to adopt Resolution No. 2003-45. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. NEW BUSINESS: 15. RESOLUTION DESIGNATING POLLING PLACES FOR THE REGULAR MUNICIPAL ELECTION TO BE HELD NOVEMBER 4, 2003. MOTION by Councilmember Billings to deny the Resolution Designating Polling Places for the Regular Municipal Election to be Held November 4, 2003. Seconded by Councilmember Ann Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 16. RESOLUTION DECLARING A QUESTION TO BE PLACED ON THE BALLOT AT THE NEXT REGULAR MUNICIPAL ELECTION TO INCREASE SANITARY SEWER RATES IN EXCESS OF THE INFLATIONARY INDEX OR 5%, WHICHEVER IS LESS, AS REQUIRED BY SECTION 7.02 OF THE FRIDLEY CITY CHARTER. MOTION by Councilmember Barnette to deny the Resolution Declaring a Question to be Placed on the Ballot at the Ne�t Regular Municipal Election to Increase Sanitary Sewer Rates in Excess of the Inflationary Index or 5%, Whichever is Less, as Required by Section 7.02 of the Fridley City Charter. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 17. RESOLUTION DECLARING A QUESTION TO BE PLACED ON THE BALLOT AT THE NEXT REGULAR MUNICIPAL ELECTION TO INCREASE STORM WATER RATES IN EXCESS OF THE INFLATIONARY INDEX OR 5%, WHICHEVER IS LESS, AS REQUIRED BY SECTION 7.02 OF THE FRIDLEY CITY CHARTER. MOTION by Councilmember Billings to deny the Resolution Declaring a Question to be Placed on the Ballot at the Ne�t Regular Municipal Election to Increase Storm Water Rates in Excess of the Inflationary Index or 5%, Whichever is Less, as Required by Section 7.02 of the Fridley City Charter. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 8, 2003 PAGE 20 18. RESOLUTION DECLARING A QUESTION TO BE PLACED ON THE BALLOT AT THE NEXT REGULAR MUNICIPAL ELECTION TO INCREASE WATER RATES IN EXCESS OF THE INFLATIONARY INDEX OR 5%, WHICHEVER IS LESS, AS REQUIRED BY SECTION 7.02 OF THE FRIDLEY CITY CHARTER. MOTION by Councilmember Rick Wolfe to deny the Resolution Declaring a Question to be Placed on the Ballot at the Ne�t Regular Municipal Election to Increase Water Rates in Excess of the Inflationary Index or 5%, Whichever is Less, as Required by Section 7.02 of the Fridley City Charter. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 5. RESOLUTION NO. 2003-46 CONSENTING TO THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA, ADOPTING A 2003 TAX LEVY COLLECTIBLE IN 2004. Mr. Scott Hickok, Community Development Director, said that at the last HRA meeting, one of the HRA members, Mr. John Meyer, asked a question about not having the levy for the HRA to make room for funds that could possibly go to the Springbrook Nature Center. He asked Council to keep the issues distinct and to allow the HRA to continue their work with the levy. MOTION by Councilmember Barnette to adopt Resolution No. 2003-46. Seconded by Councilmember Bolkcom. Mayor Lund asked how the HRA was going to continue to pay the City back on the loan. Mr. John Meyer, 7868 Alden Way, N.E., member of the Fridley HRA. This issue was discussed at the last HRA meeting. He said it had occurred to him that a way to alleviate some of the budget problems might be to hold in abeyance the HRA levy for this year and some future times as well, in order take some of the pressure off the City Council and to help the Springbrook Nature Center. He said the levy for the HRA was about the same as the amount for the Nature Center levy. He said this matter did not come to a vote before the HRA. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 18A. MOTION FOR CITY STAFF TO WORK WITH THE SPRINGBROOK NATURE CENTER FOUNDATION, THE FRIENDS OF SPRINGBROOK AND THE CITY COUNCIL TO DEVELOP A DOLLAR AMOUNT FOR FUNDING FOR THE YEAR 2004 AND TO HAVE A REPORT AVAILABLE BY THE OCTOBER 20, 2003, BUDGET WORK SESSION AND FOR CITY STAFF TO LEND THEIR EXPERTISE IN HELPING TO LOOK AT ALTERNATE REVENUE SOURCES, NOT ONLY TO INCLUDE USER FEES, BUT OTHER SOURCES OF REVENUE. FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 8, 2003 PAGE 21 MOTION by Councilmember Bolkcom for City staff work with the Springbrook Nature Center Foundation, the Friends of Springbrook and the Fridley City Council, to develop a dollar amount for funding for the year 2004 and to have a report available by the October 20, 2003, budget work session and that City staff lend their expertise in helping to look at alternate revenue sources, not only to include user fees, but other sources of revenue. Seconded by Councilmember Wolfe. Mr. Mitchell said he did not want to have to discuss everything over again. Councilmember Wolfe said he thought Councilmember Bolkcom's proposal was a good idea. Mr. Mitchell said he felt the issue was being put off. Mayor Lund said they needed time to work the differences out. Dr. Burns said he was concerned with working things out one at a time. He said if they worked this out and get committed to this issue and went to the budget work session on October 20, they would be facing Values First, employee cost of living adjustments, and health insurance increases. He thought it would become harder and harder to balance the interests. Councilmember Billings said he thought any one of them could come out of reserves. It was just a matter of how much would be taken out. Dr. Burns said that should be reviewed at the same time. Mayor Lund said they need to discuss all the factors at the budget work session on October 20, not just Springbrook. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 19. INFORMAL STATUS REPORTS. Mayor Lund reminded the audience of the 9-11 event that would be held on Thursday at 8:00 p.m. at the Fridley High School football field. Mayor Lund said that Banfill-Locke would be holding their Art in the Park festival on Sunday from 12:00 p.m. to 6:00 p.m. Dr. William Burns, City Manager, said that after the Council meeting staff would like to discuss the Program Supervisor vacancy in the Recreation Department. ADJOURNMENT. MOTION by Councilmember Barnette to adjourn the meeting. Seconded by Councilmember Wolfe. FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 8, 2003 PAGE 22 UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE REGULAR MEETING OF THE FRIDLEY CITY COUNCIL OF SEPTEMBER 8, 2003, ADJOURNED AT 11:20 P.M. Respectfully submitted, Roberta S. Collins Secretary ��� � Sco�J. L�und Mayor