06/28/2010 - 29309CITY COUNCIL MEETING
CITY OF FRIDLEY
JUNE 28, 2010
The City Council meeting for the City of Fridley was called to order by Mayor Lund at 7:00 p.m.
ROLL CALL:
MEMBERS PRESENT: Mayor Lund
Councilmember-at-Large Barnette
Councilmember Saefke
Councilmember Varichak
Councilmember Bolkcom
OTHERS PRESENT: William Burns, City Manager
Fritz Knaak, City Attorney
Scott Hickok, Community Development Director
Richard Pribyl, Finance Director/Treasurer
Debra Skogen, City Clerk
Don Abbott, Director of Public Safety
Roger Fink, Trident Development
PRESENTATION:
Fridley K9 Program
Don Abbott, Director of Public Safety, stated the Fridley Police Department is quite proud to
welcome the police canines, Nitro and Kona, to the force. Fridley Police has long recognized the
value of police canines but has had to rely on neighboring agencies for that source over the years.
Using $33,000 in federal grant funds (from the JAG grant from 2009), the City purchased the
two dogs, German Shepherds, from the Czech Republic in the fall of 2009. Kennels were
installed at the handlers' homes and they purchased the required equipment to begin canine units.
Basically the start-up costs of the two canine units were covered by the JAG grant funds from
2009.
Chief Abbott stated the two teams began a mix of informal and formal training as soon as the
dogs arrived from the Czech Republic. Formal training began in March of this year and
concluded 13 weeks later on June 18. Training covered the skills necessary for Patrol Dog 1
Certification which includes tracking, apprehension, and drug and evidence location along with
very advanced obedience training. The City congratulates Officer Chris McClish with Nitro and
Officer Matt Noren with Kona on completing the 13 weeks of grueling training which
culminated in a nine-hour certification testing process on June 17. The City commends the two
officers and their canine partners for finishing in the No. l and No. 2 slots in their course of eight
canines from around Minnesota. This brings the number of canine teams on patrol in Anoka
FRIDLEY CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 2
County to nine, making it highly likely that a canine team is on-duty somewhere in Anoka
County twenty-four hours a day, seven days a week.
Chief Abbott stated the Fridley Fire Department graciously provided space within the fenced
area at their training facility for the creation of a canine training area. Also, Fridley Public
Works staff took care of clearing the area and constructing the obstacles and the training aids
used on a regular basis by the canine teams.
Chief Abbott stated Top Dog honors for the class went to Officer Chris McClish and his canine,
Nitro. They received that for finishing first in the class. In their certification score, they
received 677.78 points out of a possible 700. Their instructor said that was one of the highest
and believed it was the highest one he is aware of by a new dog and handler on that certification
test. First apprehension honors goes to Officer Noren and Kona.
Chief Abbott stated this is very unusual but on their first night on patrol which was last Monday
night, Officer Noren and canine Kona were called to assist a Blaine officer when a suspect ran
from a traffic stop in Spring Lake Park on June 21. Officer Noren and Kona tracked the person
to his hiding place behind a woodpile in the backyard of a nearby home. Upon locating the
suspect, Officer Noren announced the presence of the canine. The suspect gave up. The male
was subsequently identified, and an outstanding warrant for felony criminal se�ual conduct was
discovered. The officers reported that without the assistance of a canine, that would not have
happened. The vehicle registered to Fridley so it absolutely benefited our community as well.
Chief Abbott swore in the canines.
Councilmember Bolkcom asked if they had to recertify.
Officer McClish said they have to recertify once a year.
Councilmember Bolkcom asked if it was a long as the first time.
Officer McClish said it was only for a couple of days.
APPROVAL OF PROPOSED CONSENT AGENDA:
APPROVAL OF MINUTES:
City Council Meeting of June 14, 2010
APPROVED.
FRIDLEY CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 3
OLD BUSINESS:
1. Second Reading of an Ordinance Amending Chapter 30, Lawful Gambling, and
Chapter 603, Intoxicating Liquor, of the City of Fridley City Code Defining
Licensed Organizations to Conduct Lawful Gambling.
William Burns, City Manager, stated the ordinance redefines organizations that are permitted to
conduct lawful gambling in Fridley. One-third of its members must reside in Fridley or the
organization must have its principal business in Fridley. Establishments that hold Fridley liquor
licenses must seek qualifying organizations or attest to not being able to find one. Council may
waive the qualifying organization requirement. As has been the case in existing law, these
organizations must spend 50 percent of their proceeds within the City of Fridley trade area. Staff
recommends Council's approval of the second and final reading of this ordinance.
WAIVE THE READING OF THE ORDINANCE AND ADOPTED ORDINANCE NO.
1270 ON SECOND READING AND ORDERED PUBLICATION.
NEW BUSINESS:
2. Receive the Minutes from the Planning Commission Meeting of June 16, 2010.
RECEIVED.
3. Resolution Providing the Sale of $2,810,000 General Obligation Utility Revenue
Bonds, Series 2010A.
William Burns, City Manager, stated the resolution authorizes staff to work with our bond
counsel, Ehlers & Associates to sell $2,810,000 in utility revenue bonds. The bond proceeds will
be used to pay for water, sewer, and storm water improvements constructed in 2010 and 2011.
Staff is recommending a two-year issue in order to save money on bond issuance costs. Staff
will ask Council to award the bid for the sale of these bonds at Council's July 12 meeting. Staff
recommends Council's authorization to seek bids.
ADOPTED RESOLUTION NO. 2010-34.
4. Resolution Providing for the Sale of $1,270,000 General Obligation Improvement
Bonds, Series 2010C.
William Burns, City Manager, stated the proceeds will finance the special assessment portion of
the 2009 and 2010 street projects. Council is issuing the bonds for a two-year period to save on
issuance costs. Staff will ask Council to award the bid for the sale of these bonds at their July 12
meeting. Staff recommends Council's authorization to seek bids.
ADOPTED RESOLUTION NO. 2010-35.
FRIDLEY CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 4
5. Approve Agreement for the Administration of the Edward Byrne Memorial Justice
Assistance Grant (JAG) Program FY2010 Local Solicitation.
Dr. Burns stated Anoka County, Coon Rapids, Columbia Heights, and Fridley have received
$62,592 in JAG Grant funding. The agreement establishes that Coon Rapids will serve as the
fiscal agent for the grant and as such will use 10 percent of the grant revenues to cover its
administrative costs. Fridley's net share of grant proceeds is $15,106.50. The money will be
used to purchase new pistols, holsters, magazine holders and ammunition.
APPROVED.
6. Claims (146549 — 146748).
APPROVED.
7. Licenses.
APPROVED THE LICENSES AS SUBMITTED AND AS ON FILE.
8. Estimates.
APPROVED THE FOLLOWING ESTIMATES:
G. L. Contracting
4300 Willow Drive
Medina, MN 55340
45th Avenue Outfall
Project No. 390
FINAL ESTIMATE
...................................................................$ 6,105.27
Penn Contracting
13025 Central Avenue
Suite 200
Blaine, NIN 55434
2010 Watermain Rehabilitation
Project No. 391
Estimate No. 2 ................................................................................$ 44,782.50
APPROVAL OF PROPOSED CONSENT AGENDA:
Councilmember Bolkcom mentioned there are three e�tra zeros in the title of Item No. 3 on the
agenda.
MOTION by Councilmember Barnette to approve the consent agenda. Seconded by
Councilmember Varichak.
FRIDLEY CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 5
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
ADOPTION OF THE AGENDA:
MOTION by Councilmember Bolkcom to approve the agenda. Seconded by Councilmember
Saefke.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
OPEN FORUM:
Detective Travis Volk, Fridley Police Department, said he would like to share some concerns.
He said there was some misinformation about four police positions. About a month ago the
Fridley Police Department had 41 positions and now it is his understanding there are 37.
Mayor Lund replied, he thought that was fairly accurate. He said he could not tell him what the
actual numbers are. Some have left and the City does have a hiring freeze.
William Burns, City Manager, stated his recollection is they had 39 positions, and there are now
he thinks 36 positions. However, he could be wrong.
Mayor Lund said they know we are not at full complement.
Detective Volk asked if this was going to be permanent or until the budget straightens out?
Mayor Lund replied, obviously there has been a push from our Police Chief. We would love to
fill the positions, but we are in a hiring freeze. He cannot tell him how short or long that term
will be.
Detective Volk stated he understands.
Mayor Lund stated he could not tell him now if they are going to freeze them for 2011. They
have not finalized the 2011 budget.
Councilmember Bolkcom stated they just had a budget meeting last Monday, and there was a
fairly lengthy discussion about police officers and what we needed to do. The recommendation
from the City Council was that the City Manager and staff should come back with a
recommendation related to the police officers at the ne�t budget session in October.
Detective Volk asked so they are not looking at any timeframe. He understands the budget is
tight. He asked if the Police Department is considered an essential service to the City. He
noticed that the City is also hiring Fire personnel currently.
FRIDLEY CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 6
Mayor Lund said there has been a request for paid on-call, part-time firefighters. He does not
recall having any full-time.
Dr. Burns stated the positions they are filling right now are all paid on-call. It is the same
number the Council has authorized for a long, long period of time.
Detective Volk stated he knows that Parks hired many seasonal employees recently to keep up
with the mowing of the parks and the common areas, etc.
Mayor Lund stated actually they have cut way back on that, too. Detective Volk may notice
that University Avenue again this year is not being mowed at a savings of roughly $24,000.
Dr. Burns stated it was cut back 25 percent for 2010, it was cut back for 2009, and we will see a
20 percent cut back in part-time seasonals for the Street Division in 2011 and 2010 as well.
Mayor Lund asked if Detective Volk's questions were because of the impending arbitration or
mediation with the police officers.
Detective Volk said he understands the question and it really has no bearing on that part.
Dr. Burns stated it is really terribly inappropriate to bring arbitration issues or labor contract
negotiation issues to the City Council meeting.
Detective Volk said that is not what this is about.
Councilmember Bolkcom asked him if he could state his reason. Normally at open forum,
Council receives information and they actually do not report back until the ne�t meeting. She is
a little concerned where this is all going.
Mayor Lund asked him to tell them what his concerns are.
Detective Volk stated his concerns are officer safety. Without those four positions, they have
decreased patrol to 22 officers. That is a 15 percent decrease in patrol. They have 15 personnel
designated as either SRO's, detectives, or administrative. They do not respond to 911 calls. He
is a detective and people do not want to see him show up at their house when they call 911
because their house got broken into. The less patrol officers they have on the street, the more
dangerous it is for the people who are actually working in the City.
Mayor Lund stated because the discussion was so recent, he can tell him there is one patrol
officer position that is vacant right now.
Dr. Burns stated he is aware of three positions that are vacant.
Detective Volk stated he thought there were either three or four spots.
FRIDLEY CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 7
Dr. Burns stated there are three spots, and one has been vacant for three or four years. There are
two recent vacancies that are temporarily on hold until the City finds a way out of the financial
challenges it is in right now. We are seeing 2011 as much better at this time this year than we
were seeing it last year, but it is still a situation where he thinks they are pretty smart to be very
restrained in our spending pattern. We do not want to not fill police positions unnecessarily, but
it makes sense at this point to do it. He would also point out that back in the early 90's, the City
had seven less positions than it does now. It gained seven positions through the Clinton Cops
Program. There is no other branch in the City that has gained that kind of employment. If you
look around the City, you cannot find anywhere that gained seven positions in the last 15 or 20
years.
Detective Volk stated he understands they have a very difficult job. However, these are
legitimate concerns that most, if not all, of the Police Department personnel have.
Mayor Lund said if Mr. Volk would like to submit his questions they could respond to him
more fully. He is aware there is a safety priority not only for the officers but for our citizens.
Dr. Burns stated part of the more immediate problem has been the presence of the two canine
officers and their being in training and not on duty. He thinks now that they are back with the
dogs, that will help somewhat.
Detective Volk agreed.
Dr. Burns stated to Detective Volk he is probably well aware they have two officers in two
different drug task forces who are outside the normal roll call. Also, a third person has been
dedicated entirely to bond detective work and is not available for the street. We tended to
specialize, and that has somewhat exacerbated the manpower problem for the street.
Detective Volk replied, he understands that and Dr. Burns is right. For at least the last five
years, Fridley has ranked in the top five cities for the highest number of calls per officer in the
metro area.
Dr. Burns replied, that is true. The City has a lot of calls.
Detective Volk said the reason they were curious was because it was unclear to them what the
status was.
Dr. Burns said he could tell him anything he wanted to know. He would be happy to talk with
him. He said he does think it is a longer-term decision to make a commitment on when they are
going to fill those vacancies.
Mayor Lund stated they will not know what will happen for 2011 until their ne�t budget session
in October.
Dr. Burns stated one of the biggest unknowns is what the State comes up with. The City is
looking at a 2011 legislative session where they are going to have to deal with a$5.8 billion
FRIDLEY CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 8
State deficit. While the City is supposed to get $1.8 million for local government aid, which is a
large part of what goes to fund the Police Department, given the size of the deficit, there may be
additional cuts to that amount or it may totally be cut.
PUBLIC HEARINGS:
9. Consideration of Proposed Amendment to the Fridley City Charter, Chapter 7-12.
MOTION by Councilmember Barnette to open the public hearing. Seconded by
Councilmember Varichak.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
PUBLIC HEARING OPENED AT 8:24 P.M.
Debra A. Skogen, City Clerk, stated the Fridley Charter Commission meets eight times annually
to review the Fridley City Charter. The Commission reviewed Chapters 7 through 12 for general
housekeeping issues to make it consistent with State law. On May 24, 2010, the Commission
recommended an amendment by ordinance to the City Council. Amendment by ordinance
requires a public hearing, and a notice of the public hearing must be published containing the
te�t of the proposed amendment. The public hearing notice was published with the te�t of the
amendment in the Fridley Sun Focus on June 3 and 10.
Ms. Skogen stated the proposed amendments are as follows: for Chapter 7, Section 7.02, there
is a word change from the word "least" to "less."
Ms. Skogen stated Chapter 8, Public Improvements, Section 8.01 changes a long sentence from
one into two sentences.
Ms. Skogen stated Section 8.05 changes the contract amount from $50,000 to "what is allowable
under Minnesota state statutes."
Ms. Skogen stated in Chapter 11, Public Ownership and Operation of Utilities, Section 11.04
changes one long sentence into two sentences and removes the words "reasonable charges" as it
is in State statute.
Ms. Skogen stated Section 11.08 would allow the City Council to establish the Public Utilities
Commission. In Chapter 12, Miscellaneous Provisions, most of this is dealing with publication
and getting information.
Ms. Skogen stated in Section 12.01, the words that were added were "important city information
including" which was put before the type of documents that need to be published. It also
describes how it should be done and removing old language, such as "typewritten and
mimeographed" and includes electronic means for publication.
FRIDLEY CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 9
Ms. Skogen stated in Section 12.02 it removes language addressing how individuals may request
records and replaces it with language referring it to the Minnesota Government Data Practices
Act.
Ms. Skogen stated based on this information, staff recommends holding the public hearing to
allow public testimony on this amendment.
Councilmember Varichak asked in Section 8.05, the third line from the bottom says it requires
an affirmative vote of at least four members of the City Council. In Section 11.08 it mentions a
majority vote of the City Council. She asked what the difference between the two was.
Ms. Skogen said they did not change those sections. She believes four-fifths is needed because
it is dealing with money. In relation to public utilities, that was written in the language currently.
All they did was add the sentence allowing the City Council to establish a public utilities
commission by a majority vote.
Councilmember Bolkcom asked if they took $50,000 out in Section 8.05 because the State
statute changed.
Ms. Skogen replied, correct. This is actually the third time they have changed it since she has
been here. The recommendation was to change it to State law because it has gone from $10,000
to $50,000, to $100,000.
Councilmember Bolkcom asked what "transportation lines" meant in Section 8.01.
Ms. Skogen said the Charter was adopted in 1957, and this was language from that time. Part of
what the Charter Commission does is look for language that might be obsolete. She does not
have a definition for what it is.
Councilmember Bolkcom asked if it should say "modes of transportation" or something like
that. To her it means back to when there were streetcars.
Ms. Skogen stated she thinks it is a good question. They could bring it to the Charter
Commission and have them review it and discuss it.
Councilmember Saefke stated when the Charter was written he can tell them for a fact we did
not have bus service. So that might be one of them. Now we have bus shelters for the bus stops
which we did not have before, and this is authorizing some input from the City on the
development of those things. Plus, he thought it would include things like the commuter rail
line. East River Road did have the streetcar down the pathway, many, many years ago that
would head to Anoka. He suspects when this was written it was an all-encompassing term.
Councilmember Bolkcom said if they are going to look at the different chapters, then maybe we
should also look at what that means and define it in some way.
Ms. Skogen said she thinks they should bring it to their attention.
FRIDLEY CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 10
Councilmember Bolkcom asked if the Charter Commission vote on the changes was
unanimous.
Ms. Skogen replied, yes.
Mayor Lund asked why they added a line about establishing a public utilities commission in
Section 11.08.
Ms. Skogen said she believed it had to do with the restrictions currently in place. It would give
the City the ability to have someone else set the rates if Council did not want to.
Mayor Lund asked why they included "important city information" to the language in Section
12.01.
Ms. Skogen replied during the review of the chapter, individuals come in with different words or
ideas. She said she did not recall the conversation, but she thinks they wanted to allow other
City input, i.e., on the website.
Councilmember Bolkcom stated so it could be something like the water quality report.
Ms. Skogen replied, yes, or other things that are not necessarily required to be published but
would be of interest to the public.
Councilmember Bolkcom asked right after that sentence, "it shall be done." Is that saying it
has to be done by mailing or posting? Could you just add, "it shall be done by mailing, posting,
or electronic means" for publication? Otherwise it seems to her you have to do it. Could you put
the electronic part in there so there are things that you would have to do electronically?
Mayor Lund asked the City Attorney if it had to be printed.
Fritz Knaak, City Attorney, replied ordinarily it would require that you have it printed. As he
understands this language, you simply do what the law permits to the e�tent it would modify that
number. If State law modifying publication or any kind of law regarding publication changed,
you would be allowed to change it.
Councilmember Bolkcom asked why it did not include "State statute" in some of the other
sections.
Councilmember Saefke stated he has a little bit different interpretation of it. Prior to "It shall
be done" it is talking about publications required by the Charter or State statute. The way he is
reading it is, "It shall be done either by mailing or posting" meaning printed copies in a public
place and you can post it here at City Hall or other public buildings in some printed form. In
either case, we are required to notify people of elections and any time we have meetings because
of the open meeting law. So long if we are posting it, it is either going to be a general mailing to
everyone or posting in a public place.
FRIDLEY CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 11
Councilmember Bolkcom asked where we post public hearing notices. She knew we put them
in our official newspaper but do we post them at City Hall?
Dr. Burns said he believes the City posts them on the bulletin boards in the lobby.
Councilmember Saefke stated he also sees schedules by the back door.
Councilmember Bolkcom stated but that is not a notice of a public hearing.
Ms. Skogen stated she is not sure whether Planning Commission posts their public hearings.
Dr. Burns stated they post things on the website as well.
Mr. Hickok stated, yes, they are on the calendar in the entryway.
Councilmember Bolkcom stated, yes, but it does not actually say what the topic or anything is.
It is not like the notice sent out to people and published in the newspaper.
Ms. Skogen stated she does know, for example, notices of election for the filing and for the
notice of election and the sample ballot, are posted in the three entry doors in its full form.
Councilmember Saefke asked Attorney Knaak on these postings is it required that you have to
have the agenda or the topic or just the time, date, and location of a meeting.
Attorney Knaak replied normally it is the time, location, and the content or subject matter of the
meeting.
Councilmember Bolkcom stated maybe they should look at putting according to "State statute"
in some other areas.
Mayor Lund stated he thinks that is a good comment to take back to the Charter Commission.
Other than that he does not see any problem with the additions and deletions.
Councilmember Bolkcom asked whether this will go back to the Charter Commission because
of comments and clarification questions.
Ms. Skogen replied you could move it to its first reading at the ne�t meeting the way it is
currently written or send it back to the Commission for their review. The Commission meets in
September.
Dr. Burns asked Council to review their concerns so the Charter Commission and the City staff
understand what exactly they want.
Mayor Lund stated he heard the clarification on transportation, his question about the
establishment of a Public Utilities Commission and the thought process in changing some
FRIDLEY CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 12
language, important City information and a little redundancy of other such measures and matters.
What was the other one?
Councilmember Bolkcom stated the whole question about "it shall be done." Should they add
"by mailing or posting or printed copies or as per State statute."
MOTION by Councilmember Barnette to continue the public hearing. Seconded by
Councilmember Varichak.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
10. Consideration of the Removal or Repair of a Hazardous Building Located at 6260
Alden Way N.E. (Ward 3).
MOTION by Councilmember Bolkcom to open the public hearing. Seconded by
Councilmember Saefke.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
PUBLIC HEARING OPENED AT 8:25.
Scott Hickok, Community Development Director, stated this is an action to consider a building
hazardous in accordance with State Statute provisions. There has been some progress since the
setting of this public hearing, but staff has determined it would like to continue and ask Council
to consider the resolution that would have allow them to move forward with the hazardous
building provisions. In spite of our concerns about the danger of people entering the home, we
did not get a lot of response from the homeowners.
Mr. Hickok stated since the hearing was set, the majority of the structure has been removed.
What exists today is the foundation which is going to be reused for the new structure. Staff is
asking Council adopt the resolution so that in the event the foundation sits for any length of time
staff could continue with the removal without coming back to the Council and delaying this
matter further.
Mr. Hickok stated staff does think there is a contractor who has been hired to not only do the
demolition work that has been done but to also rebuild. However, if there are any sort of delays,
for the benefit of the City and those who may be in danger of an open excavation, staff asks that
we have a resolution allowing us to proceed if necessary.
Councilmember Barnette asked what would be a reasonable time for them to do the
construction.
Mr. Hickok replied the State statute spells out how long they have to either repair or to
demolish. They would need to keep moving ahead. They have a very limited period (20 days) to
move forward and take this to the ne�t step. If they do not do that then having a resolution and
having the ability to remove the structure, would still be in play.
FRIDLEY CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 13
Councilmember Bolkcom asked if they have used the State statute before for other hazardous
buildings.
Mr. Hickok replied, yes, this is the fifth one in the last 16 years.
Councilmember Bolkcom asked if any building permits have been pulled.
Mr. Hickok said a demolition permit has been required to get it to this point. Also, plans have
been submitted for the structure.
Councilmember Bolkcom asked if there has been a building permit.
Mr. Hickok replied, he did not believe so. The plans are in but the building permit has not been
issued.
Mayor Lund said the resolution talks about demolishing the building but the building is
basically gone. If they did not do anything about a building permit, would the ne�t step be that
the basement has to be removed, filled in, etc.? Is that part of the resolution?
Mr. Hickok replied, yes, they would eliminate the hazard.
MOTION by Councilmember Bolkcom to close the public hearing. Seconded by
Councilmember Saefke.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
PUBLIC HEARING CLOSED AT 8:32.
NEW BUSINESS:
11. Resolution Ordering the Removal or Repair of a Hazardous Building Pursuant to
Minnesota Statutes, Section 463, Located Within the City of Fridley, Minnesota
(Ward 3).
MOTION by Councilmember Bolkcom to adopt Resolution No. 2010-36. Seconded by
Councilmember Saefke.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
12. Resolution Approving a Master Plan Amendment, MP #10-02, Trident
Development, LLC, for the Purpose of Constructing a Senior Living Facility,
Generally Located at 6420 Central Avenue and 1282 Mississippi Street N.E.
(Ward 2).
Scott Hickok, Community Development Director, stated Town Center Development rezoned
and replatted the property to S-2, Redevelopment District in 2004. Both land use actions were
FRIDLEY CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 14
approved by the City Council; however, the petitioner never filed the final plat for the property.
Town Center Development proposed to plat the subject properties into two lots, one which
would be updated by an updated and remodeled Sandee's Restaurant and the other would be
occupied by a new 54-unit senior condominium project. Since 2004 and those approvals, the site
has remained as it is today.
Mr. Hickok stated the petitioner is proposing to construct a three-story, 72-unit, senior facility.
It would include 8 independent living apartments, 50 assisted living apartments, and 14 memory
care support studio units. The apartment units will include either a one or two-bedroom floor
plan with a complete kitchen and appliances (washer and dryer) in each room. The apartment
units range in size from 580 square feet to 880 square feet, and the memory support studios are
approximately 380 square feet in size.
Mr. Hickok stated the proposed building is designed in an "X" shape. It is a three-story
building with a pitched roof. The "X" shape really helps to break up the building's volume. The
exterior fa�ade will include a drive-under canopy, a covered porch, peaked roof forms, dormers,
and bump out windows. The e�terior siding includes a complementary mix of cultured stone,
maintenance free steel lap siding, and vinyl shingles.
Mr. Hickok stated the subject property is configured currently into two lots, not the two that
were proposed by Town Center Development, but the two that were originally there. One for the
home that exists on the site, and one for the larger Sandee's site.
Mr. Hickok stated in order for the development to occur over both of the lots, the petitioner will
need to combine the lots which is a simple process through Anoka County. The total project area
for both lots is 173,211 square feet or 3.98 acres. The footprint for the 72-unit building will
cover 14 percent of the lot area. Our three zoning standards allow up to 20 percent. Just to put it
in perspective with what an R-3 would allow, it would allow up to 20 percent of lot coverage for
the main building and not more than 30 percent by the main building and its accessory structures.
Therefore, this project complies with lot coverage even if it were an R-3 multi-family.
Mr. Hickok stated City Code also requires 48 parking spaces for the proposed project. The
petitioner is providing an e�ra stall, 49. There are 8 enclosed garage stalls and 41 surface
parking stalls to meet the Code requirements.
Mr. Hickok stated City Code requires a maximum of 45 feet in height when the building will be
within 50 feet of a residential structure. The submitted plans show a 36-foot height when
measured at the midspan. The Town Center Development project was approximately 41 feet at
the midspan or three stories. That one started out as four stories, was reduced to three stories,
and was approved at 41 feet in height at the midspan, which is the distance between the eve line
and the ridgeline of the building.
Mr. Hickok stated the proposed project meets all setback requirements.
Mr. Hickok stated the petitioner hired Maxfield Research to conduct an independent pre-
assessment for the market demand. The assessment report researched Fridley and Spring Lake
FRIDLEY CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 15
Park, Columbia Heights, New Brighton, and Mounds View. The research considered the
population, demographics, the existing competitive supply, and proposed pending developments
throughout the trade area. It also took into account the 59 units currently proposed by White
Pines or Faulkner Construction. Maxfield's report did estimate that sufficient unmet demand
exists in this trade area to support the feasibility of the proposed project as well as the 59 units
proposed by White Pines.
Mr. Hickok stated petitioner's narrative states, "The proposed development generates vehicular
traffic from three distinct activities. (1) Residents: The resident population will be an average
of 84 years old. Fourteen of the units are memory care residents who will not drive. Of the
remaining 58 units, we estimate that 15 percent (or 9 residents) may still own and drive cars.
Transportation for those who do not drive is provided by friends, family, or the private transport
van operated by this facility. (2) Employees: The greatest amount of traffic activity would
come from employees arriving and leaving the property. The facility is staffed 24 hours a day.
The largest single shift generates approximately 12 cars, during business hours. A bus stop is
conveniently located across the street from the property which we hope will provide
transportation for many of the employees. Thus reducing the number of trips generated to and
from the property. (3) Visitors and Deliveries: On average, 4 to 6 visitors per day arrive and
leave during business hours throughout the week. Weekends and holidays may see higher
activity. The kitchen and housekeeping receives scheduled deliveries, similar to a small
restaurant, 2 to 3 times per week during business hours. Usually deliveries arrive in a straight
truck or box van. Seldom do deliveries arrive in a semi-tractor trailer."
Mr. Hickok stated City staff had an opportunity to tour the petitioner's facility in St. Michael. It
is essentially the same building proposed to be constructed in Fridley. Staff was very impressed
with the quality of the work done both on the exterior and interior of the property. There are
several well-thought out amenities that are offered to the residents of the facility and to the
overall construction and design of the project.
Mr. Hickok stated petitioner held a neighborhood meeting on June 15, 2010. There were six
people in attendance. The Planning Commission held a public hearing for this item on June 16,
and unanimously recommended approval with 15 stipulations. Staff recommends the City
Council concur with the Planning Commission.
Councilmember Varichak asked if both parcels are S-2.
Mr. Hickok said they were.
Councilmember Varichak asked if it was okay to have a similar building so close to another
one with the same use.
Mr. Hickok said it is a market issue. A land use regulation would not say that it cannot happen.
The Maxfield study indicated the demand is here for both the 59-unit unit and this proposed 72-
unit building. We are not saturating the market, they can co-exist.
FRIDLEY CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 16
Councilmember Varichak said someone came in a few months ago with a plan for a
development across the street. She asked what was happening with that.
Mr. Hickok replied, they let the options on the land go. That is what a developer will typically
do is tie up the land, get in agreement with the property owners through an option, and then if
their development is approved and they move forward, they advance that option into a purchase.
There is a certain timeline but they typically pay for that option, and they need to operate within
that timeline or they lose their earnest money or the money down on the properties. They let all
of that happen. The land has gone through that time period. They no longer have the land under
contract. They would need to come back and renegotiate that deal. City staff did talk to the
developer and ask why it was not advancing. They had purchased property in Mounds View and
were moving ahead at the time they were coming through this process in Fridley. The most
recent discussion was they were still very interested and understand Fridley has a market. This
happened before these two projects. They were not certain whether they would come back and
evaluate that site or another site that Fridley has that they were interested in.
Councilmember Varichak asked whether there is big enough water retention area.
Mr. Hickok replied each building will be required to handle its own. This project is a bit
different than the other project in that it is basically being designed to hold the water longer and
on site with zero percent leaving the site. Retained and absorbed into the site. The City did
receive the soil reports today which show as suspected it is sand down to a level of about 14 feet.
It is varying degrees of sand that would allow the water be held in a storm pond situation and
then the best situation for water to be filtered is to go back into the earth. It happens that way
through sand. On the other site they are holding their water and they need to hold it through a
100-year storm event and they need to meet our engineering standards for the design. Each site
has to develop their site in a pre-runoff condition. Even though they are putting added hard
surface they cannot exceed what the absorption was in a pre-runoff condition.
Councilmember Varichak asked about the truck traffic going in and out. She is worried about
the school buses. What are the timeframes for when employees are going in and out? Are they
at the same time?
Mr. Hickok replied deliveries are generally by smaller vehicles. They are not talking about
semi-trailers on either project, although there may be some exceptions. He can almost assure
them that a conflict that would put them there during busiest of traffic hours probably would only
happen once because then they could arrange deliveries in another fashion. On this particular
project, the deliveries will come in off of Mississippi Street and be on the west side of the
building.
Councilmember Varichak asked if the street would need to be redesigned.
Mr. Hickok replied they did receive a letter from Anoka County and essentially what they did is
attach the letter from the Town Center Development. That includes distances from intersections
for driveways, eliminating the number of driveways, and those things. Staff has passed that onto
the developer to make certain those things are protected. One of the things in the original letter
FRIDLEY CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 17
about Town Center Development that relates to their question is that because Town Center
Development was being platted it was needed to give up quite a bit of land dedication for public
right-of-way in the event of future roadway expansion along Mississippi Street and Old Central.
This project is not being platted. They are using all the land as one lot. It does not require a plat
and when it does not require a plat, there is no dedication of roadway to the County. If the
County wants to do those kinds of improvements in the future, they would need to actually
acquire the land. The petitioner has considered that and positioned the building to that in the
event the County wants to make that acquisition later, the building would not be in the way.
Councilmember Varichak asked since this is fairly close to some residential areas has the
fencing and lighting been taken into consideration. She knows they did have some issues before
with fencing and proper lighting.
Mr. Hickok replied there is quite an elaborate landscape plan being proposed for this project. It
does not just have one long monotonous expansive fence running along the property line.
Instead it has between the existing residential and this project landscape, landscape and fence
sections. It is an interesting view from the neighbor's property and their property without just
being one long fence. They believe the neighbors will be happier about having new trees in there
and not having fence where there was nice natural open area.
Councilmember Varichak asked regarding the age restriction. What would happen if a 55-year
old person has a younger partner and they had a child.
Councilmember Varichak said she is concerned about how big it is going to be. With the other
project for this site that was before Council, there was a lot of discussion about what was going
to go in there and how high it was going to be. From what she read in the Planning Commission
meeting minutes, there was really no opposition to any of this.
Mr. Hickok stated, yes, and reassure her about the size, the building is shorter than even the
shortest version of Town Center that was approved. The footprint of this building is smaller than
the approved Town Center Development master plan. It is more compact although it is 72 units.
We are talking about a different type of unit than the 54 for sale condominiums and a restaurant.
The unit numbers though higher also do not generate the vehicles on the site.
Councilmember Bolkcom stated there will be a delivery entrance on Mississippi. She asked if
there would be two right-ins and right-outs on Central.
Mr. Hickok stated there is a right-in and right-out and also a full access intersection, right or
left, on Central. The County indicated that at some point there may be a median along
Mississippi and, if that happens, they just need to realize at that point it is a right-in and right out.
They do have three access points. The County does not want the access points too close to the
intersection nor too close to each other to cause a conflict.
Councilmember Bolkcom asked if people could come in the entrance on Mississippi and go all
the way around the building.
Mr. Hickok replied, no.
FRIDLEY CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 18
Councilmember Bolkcom asked whether the City has received anything back from the Rice
Creek Watershed District.
Mr. Hickok replied they have been working with the Rice Creek Watershed District and the City
stipulates they need to meet the requirements of the Rice Creek Watershed District before they
can move forward.
Councilmember Bolkcom asked if this was compatible with what is in our Comprehensive
Plan.
Mr. Hickok said it was.
Councilmember Bolkcom said because they are approving this mater plan amendment, if there
is a major change this would come back to them. What would qualify as a major change?
Mr. Hickok stated he would remove the word "major" and just say "a change would require
master plan review."
Councilmember Bolkcom asked what would qualify as a change. She is going back to the
fence and lighting and what if, for instance, the money runs out. Would that be considered a
change?
Mr. Hickok said what they are approving is what is going to be built and any changes made
would need to come back. There has been a landscape plan submitted and reviewed by staff.
Also a civil plan reviewed and at least to this point approved by staff, excepting anything that the
Rice Creek Watershed District may change. If it is not on the site plan and not in the
stipulations, and there is a change that happens, Council will be seeing it again.
Councilmember Bolkcom stated it is not a stipulation that if there is any change in the master
plan it has to come before them. Is that just understood?
Mr. Hickok replied, no. It is in the S-2 zoning which is predicated on a master plan that Council
approves.
Roger Fink, Trident Development, stated regarding the 55 and older question, he thinks they
would be governed by the Fair Housing law in that case. They would be required to allow them
to rent there. One of the couple/spouse would be at least 55 or older. If the other one was
younger or there are children, he thinks they would be required to rent to them.
Mayor Lund stated there are a lot of these cooperatives and associates with bylaws/covenants.
Are there any here?
Mr. Fink replied, there are no covenants recorded here with this property. Regarding the
residency, there is a month-to-month lease offering housing with services. He thinks it would be
e�tremely rare to have an individual who is 55 with a younger spouse choose this property.
FRIDLEY CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 19
Councilmember Varichak apologized that she was not at the neighborhood meeting as she was
not notified.
Mr. Fink apologized as well as they received the mailing list from the City. They went through
the list together and made sure they had an accurate representation and understood who the
neighbors and landlords were. He thinks there was another person who felt they should have
gotten an invitation also but he did not know if they were on the list.
Councilmember Varichak asked Mr. Fink whether he was okay with the 15 stipulations.
Mr. Fink replied they have read through the stipulations. He thinks the only caveat for those
have to do with the Anoka County letter. There are four or five suggestions that come out of that
letter. He thinks the requirement portion has to do with the required permits, the required plan
review submittals, the required contact and so forth before you proceed with construction.
However, the others he is interpreting them to be suggestions having to do with access drives and
there were a number of other things in there. He just wants to make sure their application is not
caught up saying you did not comply with the suggestion. He is relying on staff to guide him
through that process.
Mayor Lund stated if they approve this, the stipulations must be adhered to. Suggestions that
have been talked about in this presentation or elsewhere are simply suggestions. He asked
Mr. Hickok to respond for clarification.
Mr. Hickok replied he understands the concern because the distinction needs to be drawn
between what is a requirement of the County and what is being suggested by the County. They
cannot require dedication of a public right-of-way, for example, because it is not a plat. The
Town Center Development had a plat and, therefore, they were entitled to right-of-way. It made
it a requirement. There is not a requirement for them here to dedicate land because they are not
going through the platting process, and it would be wrong for us because our subdivision
ordinance does not give us the authority to give or require dedication of land unless it goes
through a platting process. There is a requirement by the County that any work in the right-of-
way gets a permit prior to. The County's permit folks may have an issue with the access
location. As it relates to Town Center Development, there was another development across the
street and they were matching driveways with a development across the street. We do not have
that same situation here. What the petitioner, his architect, and his engineering staff have done is
be cognizant of distances from the intersection and took, what he would consider worst-case
scenario, in giving themselves distance from the intersection so that they keep their driveway
back Frankly he does not see any conflict with what the County would normally require here.
By removing the Sandee's building, there were some impediments in the public right-of-way up
at the corner of Mississippi and Central. Those are gone. They have left this open in their
landscape plan so there is better visibility up at the corner. There are some things here that a
template letter does not necessarily help us with or address, but we can go through and point out
what would be required. We will hold them to the requirements, not the suggestions.
Councilmember Varichak asked the petitioner if he gave out his number at the meeting so if
anybody had any questions or concerns that they could call him. She also asked whether he
received any calls after that meeting was held.
FRIDLEY CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 20
Mr. Fink replied he displayed his business cards at the meeting. They presented the group with
their site and landscape plans, talked about their timeline, and he invited information from them
regarding the condition of the property line to the west. They were particularly trying to identify
those homeowners who might be to the west and try to engage them in a brainstorming idea as to
what their thoughts or wishes would be for that landscaping buffer. There was one neighbor who
had property ne�t door, and they are in communication with him about some existing trees. That
was the e�tent of it. The backyard properties on the western property line he thinks consistently
along that entire property boundary all have four-foot chain link fencing and that is an important
fence for them to have. He would also like to have some screening for their residents of the
chain link fence. They really did not have much dialogue except for the neighbor on the very
northern end near the driveway on Mississippi regarding existing trees.
Councilmember Saefke stated he presumes the Fire Department has some input on the design.
On the south side of the building is their landscaping or some type of hard surface for a ladder
truck to get back there if necessary.
Mr. Fink replied, he is not sure to what e�tent the Fire Department has reviewed this. He knows
in their original introductory staff ineeting there was a representative of the Fire Department at
the meeting. They talked about the placement of hydrants, access to the rear and the sides of the
building, and they believe this plan is satisfactory to the Fire Department. Also, this building
will be fully sprinkled.
Councilmember Saefke stated the reason he brings this up is when Mr. Hickok was drawing the
pathways from the various entrances, a Fire Department vehicle could get around three-quarters
of the building without much trouble. However, on the south side he did not know if the ground
would be hard enough if they had to put a ladder truck back there for access. If for whatever
reason there was water main break there and it happened to be on their feed and they had a fire at
the same time perhaps the sprinkler system would not work.
Mr. Fink replied, in the event that they do not have the water pressure they needed to run the
sprinkler system, there is a fire connection valve at the front of the building where a pumper
truck connects the pump to the building and basically pressurizes the sprinkler heads throughout
the building.
Councilmember Saefke asked Mr. Fink whether they have two sources of water coming into the
structure, such as one off of Mississippi and one off Old Central.
Mr. Fink replied that is correct.
Mr. Hickok stated staff did involve the Fire Marshall at the very earliest stages with the
development committee. The site plan has not changed but for an engineering modification that
would shift the building down 33 feet. The site plan is the same plan with the same access
around the southern end of the building, and the Fire Marshall's concerns were about the fire
hydrants. He wanted to make certain that the hydrant locations were where they needed them to
be. There was no comment about needing additional hard surface around the southern end. That
FRIDLEY CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 21
end has a contained area, a wander garden for memory care and is left to be more natural. That
is where the holding pond will also be and will serve as an amenity. There has been no
discussion about a hard service drive to get around that southern end of the building.
Councilmember Bolkcom asked who will be managing this facility when it is done.
Mr. Fink said they have engaged a firm from Bloomington, Minnesota, to act as the ongoing
manager. A company now known as Tealwood, but they are undergoing a name change to call
themselves "The Waters." Tealwood has e�tensive experience and an immaculate record in
managing nursing homes and assisted living facilities. At last count he thinks they had 22
nursing homes under management and some 18 assisted livings throughout Minnesota and the
upper Midwest states. He believes this would be their fifth property with them. They are not
only in charge of marketing and pre-leasing, but also with final leasing, staffing, move-ins, the
ongoing management, the food service management, reporting, etc. In addition to Trident
owning this property indefinitely, Tealwood will also be a percentage partner in the ownership of
this property. They will not be so easily fired or dismissed, but they also have the primary
motivation to see that it is operated successfully and continues to be a good neighbor in the
community.
Councilmember Bolkcom asked where they were at with the Rice Creek Watershed District and
all their permits.
Mr. Fink said representatives from the Rice Creek Watershed District have been to the property
to provide them with a wetland clearance letter. Also, Westwood Professional Services is
designing their site. They have worked with Rice Creek Watershed District for many years and
are highly confident the design they will submit to the Rice Creek Watershed District will be
received favorably because of the size of the pond and the fact it is designed to accommodate
back-to-back 100-year storm events and retain it all on site. There will not be any overflow or
discharge. It will all be retained in an infiltration pond. One of the Planning Commission
members quizzed him about the soil conditions, particularly related to the pond and if it will
infiltrate at the time. At that time they did not have the soil borings results, but they have
obtained them since. There is a couple of feet of topsoil on top and below that is pretty good
sand material for infiltration purposes. They suspect that will be the same conditions into what
he calls the Cottonwood forest.
Mayor Lund asked if the house was on the historic register.
Mr. Hickok replied no.
Mayor Lund stated previously in the existing master plan and this is being amended tonight, it
called for the house to be moved. That it had to be relocated and not destroyed. Is that true?
Mr. Hickok replied, no. There was discussion but that was when there was concern there might
be a historic significance. The developer was trying to find a new home for it so it could be
moved again but, by the time it got to Council for final approval, they were unsuccessful in
finding anyone who would move the house.
FRIDLEY CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 22
Mayor Lund asked what type of fencing is being proposed.
Mr. Fink replied after they viewed the property and met with the neighborhood and saw the
existing chain link fence there it became obvious that placing another fence within five or six
feet is not only redundant but might pose some maintenance issues and safety risks. The recent
landscape plan has increased evergreen and coniferous plantings along that western boundary in
place of what was a six-foot vinyl fence. The vinyl fence has now been replaced with spruce
trees, arborvitae, and some deciduous trees along the western boundary to screen their parking
lot and the chain link fence from their side as well.
Mayor Lund asked whose existing chain link fence is it.
Councilmember Bolkcom replied, the neighbors.
Mayor Lund stated he does not recall a chain link fence being along the whole western border.
Mr. Fink replied just about every property to the west. He cannot find one that does not have it.
Mayor Lund confirmed they will just be adding natural buffer and screening to the chain link
fence.
Mr. Fink replied, correct.
Mayor Lund asked if there were any people opposed at the neighborhood meeting.
Mr. Fink replied, there were about six people in the audience and they included the landowner, a
developer who owns a lot across Central, a gentleman who thought Mr. Fink was selling 55 and
over condominiums, and two or three neighbors who were interested. They asked a lot of
questions about who they are, what their timeline is, who the residents are, and what kinds of
amenities, services, and furnishings there might be. There was never a time when any opposition
was raised about the building itself, the e�terior architecture, or the height and size of the
building. There was a question about traffic which they addressed at the meeting. Also, they
talked about the western property line screening with the neighbor who is right there to the west.
Mayor Lund stated he sees on the south end of the building there is a considerable amount of
land there. He assumes the retention pond is probably utilizing half that land mass. On the
western half of that end, it is quite heavily wooded. He asked if the trees would stay.
Mr. Hickok stated this is where they are talking about significant trees versus non-significant
trees. You actually get a bonus in your landscape plan for keeping some significant trees, but
when they are Box Elder and Cottonwoods that may have already passed their life expectancy,
the City is not asking them to save them. As a matter of fact, they encourage them to take those
out and replace them with something more significant. Even if it means a smaller number of
trees but higher quality trees.
FRIDLEY CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 23
Mr. Fink replied the plan is to clear the Cottonwoods throughout the area necessary for the
retention pond and similar landscaping. However, on the southwest quadrant of the site that
stand of Cottonwood trees will largely stay there. Intermingled with the Cottonwoods there are
probably eight or nine significant trees that they are keeping and preserving.
Mayor Lund asked whether there is some future plan for preserving the undeveloped southwest
quadrant of that property.
Mr. Fink replied they have no future plans for that.
Mayor Lund asked where the garages were.
Mr. Fink replied this building incorporates he believes nine garage stalls which they refer to as
tuck-under garages. They are on the first floor of the northwest wing. In that portion of the
hallway there will be individual garage stalls with a private entrance off the hallway.
Councilmember Varichak asked what their timeline was.
Mr. Fink replied, they are still finalizing some of their due diligence and design development
work for this property. They hope to have that completed by the end of July. They are also in
the process of finalizing their financing which is a very key element to any project these days.
They have a lender in the queue that is doing preliminary underwriting right now and taking it to
their committee for preliminary approval. They expect to be able to have construction going in
for building permit by the end of August and, if their financing continues on track, they hope to
be able to start construction yet this fall. The timeline for construction would be about 11 to 12
months so maybe late ne�t summer they will have a grand opening.
MOTION by Councilmember Varichak adopting Resolution No. 2010-37 with the following
fifteen stipulations.
1. The property shall be developed in accordance with the architectural site plan and
architectural elevations A1-A4 dated June 22, 2010.
2. The petitioner shall obtain all necessary permits prior to construction.
3. The petitioner shall meet all Building code, Fire code, and ADA requirements.
4. The petitioner shall ensure that the proposed monument sign is 10 feet from the
property line and driveway; meets vision safety regulations and shall obtain all
necessary permits for signage erected on site.
5. Landscape plan to be reviewed and approved by City Staff prior to issuance of
building permit.
6. The petitioner shall comply with any requirements set forth by the Anoka County
Highway Department.
7. The petitioner shall receive Rice Creek Watershed District approvals prior to
issuance of a building permit.
8. City engineering staff to review and approve grading, drainage and utility plans
prior to issuance of building permits.
FRIDLEY CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 24
9. Stormwater management maintenance agreement and easements shall be filed
with the City prior to issuance of building permits.
10. The petitioner shall obtain any required NPDES Permits.
11. Property owner of record at time of building permit application, to pay all water
and sewer connection fees prior to issuance of a building permit.
12. The petitioner shall dedicate utility easements for all City utilities
13. The petitioner shall combine the parcels at 6490 Central Avenue and 1282
Mississippi Street for tax purposes and to allow the proposed development to
occur over both lots.
14. If the proposed development is modified to be used for units other than
independent living, assisted living and memory care units, a master plan
amendment will need to be obtained.
15. The petitioner shall make pedestrian connections from the proposed building to
the existing sidewalk on Mississippi Street and trail on Central Avenue.
Seconded by Councilmember Bolkcom.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
13. Resolution Providing for the Sale of $575,000 Equipment Certificates, Series 2010B.
Richard D. Pribyl, Finance Director/Treasurer, said as part of the 2011 budget discussion, staff
introduced a new concept in regards to the acquisition of capital equipment for the General Fund.
This recommendation was made because of a number of different concerns but basically the
diminishing fund balance from the General Fund and the Close Bond Fund. The proposal is to
fund the General Fund's capital needs through a form of debt that has been used by other cities
for many years. We purchased our capital equipment through cash but, because these funds have
been diminishing, staff brought this forward in the budgeting process. The debt is actually
known as equipment certificates. They are basically a form of general obligation debt.
Mr. Pribyl stated the bond proceeds will be used to pay for the General Fund capital needs for
both 2010 and 2011, and is a two-year debt issuance. This resolution authorizes staff to work
with bond counsel and the financial advisor to proceed with the sale of this debt. With the
passage of the resolution, staff will be asking Council to award the bid for the sale of these bonds
at the Council meeting on January 12.
Councilmember Bolkcom asked if the amount is $575,000 because there was a$65,000 invoice
added to the amount.
Mr. Pribyl replied that is correct. In the last couple days, staff actually added that in and had
Ehlers & Associates rerun all the numbers to incorporate that into the debt. That is the large
equipment invoice for the mechanics in the Public Works garage working on the very large
trucks.
FRIDLEY CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 25
Councilmember Bolkcom asked regarding the other two resolutions selling bonds, we are an
Aal bond rating. Will there be a decrease in our bond rating related to this.
Mr. Pribyl replied, at this point he does not anticipate any kind of a downgrade in the bond
rating but will not know until they actually go through that process and see what they are looking
for. There have been substantial changes in the rating industry in the last couple of years based
on the economy. In the last 12 months there has been a significant change in the way they rate
rental units because there has been more of an unfair disadvantage in the way they rate the
private sector vs. the government sector. Through the re-rating process or those changes in the
way they rate governmental units, we went from an Aa2 to an Aal. He would anticipate at this
point in time, the City would seek maintenance of that Aal bond rating.
Councilmember Bolkcom stated it might be a process just because of having our fund balances
and actually we could downgrade our bond rating, correct?
Mr. Pribyl replied in the current situation it does make a lot of sense for the City to proceed in
this fashion.
Councilmember Bolkcom stated and that is because we have a Charter limitation. Is that part
of the reason?
Mr. Pribyl replied that is one of the reasons. He said there are many reasons. There is the State
levy limit and the economy. He said there is no interest on this out there anymore. There are a
lot of different causes with the economy that we are in right now.
Councilmember Bolkcom asked Dr. Burns what he could do to reassure the listening public and
Council that just because we are now going to be selling bonds and the money is there that we
are not going to just start buying equipment.
Dr. Burns said it is a matter of judgment in a time of fairly serious financial constraint. The
City has not been buying nearly as much equipment as it has in prior years. There will be some
pieces of equipment that are larger. There is a fire truck coming to the City he believes in 2013.
That will be a larger expenditure than what we see this year. It is a matter of strict budgeting and
budgeting in a manner that will be approved by Council.
Councilmember Bolkcom stated she did not mean that in a negative way. Dr. Burns prepares a
DVD that they watch every year about what the equipment looks like. It is good to see the
equipment and listen to the people who work with and repair the equipment every day.
Dr. Burns stated he has had the input of the garage supervisor who is very serious about keeping
costs down. He is very honest about what we need. He thinks they have a very thrifty process
with the people they have.
Councilmember Bolkcom said she thinks that of it is a lot of our employees have worked here a
long time, and they feel an ownership.
FRIDLEY CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 26
Mayor Lund stated he thinks this is a prudent alternative. It is unique probably to Fridley but
certainly not unique to many, many cities. The City of Fridley has for many years had strong
reserves and so we could buy it and pay cash. The significant change here is now we are going
to be borrowing for the equipment, and we are going to have to pay for the equipment and the
interest rate. It is kind of unique and somewhat sad the City now has to go further in debt to
continue to run the operations of the City. It is nice to hear that our rating has gone back up.
Dr. Burn asked what this levy would cost the owner of an average valued home.
Mr. Pribyl asked with the two-year issuance, the actual annual debt service would cost
approximately $4 per year to the average homeowner.
MOTION to adopt Resolution No. 2010-38. Seconded by Councilmember Saefke.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
14. Informal Status Reports
Ms. Skogen stated absentee balloting started on Friday, 46 days before the election. The state
primary which is usually in September has been moved to August 10. If you are not going to be
in town or if you are at home with an illness or disability, if you are an election judge, or find it
is a religious holiday, you can contact the City and apply for an application for an absentee ballot
so you can vote in the primary election.
Councilmember Bolkcom stated it has changed so that you can actually go through the City of
Fridley and not have to go through the process with Anoka County.
Ms. Skogen said that is correct. Fridley is one of two cities in Anoka County that is doing all
mail and in-person absentee ballot voting. You no longer have to go to Anoka County
courthouse and apply for an absentee ballot. You can come to City Hall and do it right here.
City Hall is open on Monday through Friday from 8 a.m. to 5 p.m., and on the Saturday before
the election from 10 a.m. to 3 p.m. The last day to vote by absentee is August 9.
ADJOURN.
MOTION by Councilmember Barnette, seconded by Varichak, to adjourn.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MEETING ADJOURNED AT 10:03 P.M.
Respectfully submitted by,
Denise M. Johnson Scott J. Lund
Recording Secretary Mayor