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08/22/2011 - 30007CITY COUNCIL MEETING CITY OF FRIDLEY AUGUST 22, 2011 The City Council meeting for the City of Fridley was called to order by Mayor Lund at 7:30 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 James Kosluchar, Public Works Director Darin Nelson, Finance Director/Treasurer Tina Lovaas, Planning Intern Pam Reynolds, 1241 Norton Avenue NE Joanne Zmuda, 6051 Fourth Street NE Bruce Ray, Fridley Terrace Mobile Home Park Senator Pam Wolf Laura Kruc, Miss Fridley LEGISLATIVE UPDATE: Senator Pam Wolf said there were a number of things in finalized bill this session. The first was local government aid or LGA. LGA will stay the same as the 2010 level for cities that were receiving LGA. Another change was the "market value credit" was changed to "market value exclusion." A change in the variance law will give local governments a little more control over what they are able to give variances for. One that may be of interest to Fridley relates to the ability to purchase used public safety equipment. If the City were to sell public safety equipment, it would be released from liability for it. Senator Wolf stated ne�t year will focus primarily on bonding. They did do a bonding bill this year. Mayor Lund asked if there would be a second special session for the Vikings stadium. Senator Wolf replied she has heard nothing. If a special session is planned, she will hold a town hall meeting to get public input. FRIDLEY CITY COUNCIL MEETING OF AUGUST 22, 2011 PAGE 2 Mayor Lund stated he will probably be asking for her support for the Springbrook Nature Center in the bonding year. Senator Wolf replied she is perfectly willing to carry a bill; although she does not know what they are looking at as far as priorities and what type of bonding requests they are going to make. Mayor Lund said if there is going to be bonding money available, he would like to see some of our taxpayer dollars coming back to Fridley. William Burns, City Manager, said the second year of the legislative session is usually a bonding year as she pointed out. He asked if the legislature would be working on resolving the deficit issue and other things like levy limits, etc. Senator Wolf said they absolutely can be addressed. That will be left up to the chairs of the committees, whether they hear them in committee and if they make it in the docket on the floor. It depends on what the issue is and how much public interest there is in the issue. PRESENTATIONS: 2011 Fridley Ambassador — Leah Kruc. Systematic Code Enforcement Update by Tina Lovaas: Tina Lovaas, Planning Intern, introduced the latest technology unveiled this year, the "Trimble Yuma." It has helped her do inspections throughout the summer. Some of the features it has include, identifying the locations you are doing inspections through GPS. It can track your inspection routes. She said this feature helped her to keep tabs on where she had been in the City. Also, there are color-coded properties. This year they focused on residential properties and those were labeled a particular color so she knew what to inspect. When there was a code violation, the parcel would change color. Ms. Lovaas stated the most interesting part about this technology is an integrated camera on the back It allows you to take pictures of locations, properties, and code violations and attach it to the data. When you click on a particular parcel it brings up sort of a list, and she was able to check the violation and, after it was checked, there would be boxes to add notes and to add pictures. Ms. Lovaas stated 692 cases have been started. The top 5 violations were outside storage. Solid waste and cart placement tied for first at 21 percent; unlicensed/inoperable vehicles came in second with 10 percent; vehicle parking was 9 percent; and brush was 9 percent. Ms. Lovaas stated this summer has been an interesting with a few challenges for the Community Development Department in general. On May 22 there was a tornado which took a northeast swipe through the City. Not only did that cut short her systematic route she had already taken, it created new challenges for property owners who were hit by the tornado. It caused a lot of damage. There was also a lot of rain. Projects were not getting done because of the rain and FRIDLEY CITY COUNCIL MEETING OF AUGUST 22, 2011 PAGE 3 because of the heat. The rain also created some outside storage issues because of flooding. People had to put some belongings in particular places that were not technically allowed in the Code. Ms. Lovaas stated although the government shutdown did not directly affect the City as far as code enforcement it did affect her inspections. There was a lot of misconception as far as what the State shutdown would do to vehicle licensing centers. She dealt with a lot of questions pertaining to renewing tabs and obtaining a title for vehicles. Ms. Lovaas stated as of this morning she had 58 cases still open. Her last day will be September 6. There will be only 16 cases open after she leaves. She e�tended her thanks to the staff and the community. The staff have been nothing but cordial to her. She also thanked the property owners who worked with her to correct violations. Councilmember Bolkcom asked what outdoor storage consisted of. Ms. Lovaas replied it could be construction debris, garden tools, anything stored outside that is not in a building or screened from the public right-of-way. Councilmember Bolkcom asked how does she know only 16 violations will remain? Ms. Lovaas stated that is a best-case scenario. Every code violation has a particular timeframe they are allowed in order to solve the violation, and her reinspection dates are based upon that timeframe. She looked ahead to those timeframes and counted how many would be left after she was gone. That would include all cases resolved after that. Councilmember Bolkcom asked what else they thought the Yuma would do for the City. She asked Mr. Hickok if he knew of any time savings. Scott Hickok, Community Development Director, replied City staff will continue to use it for their regular inspections. It really does cut out a number of steps in the process. You are not carrying around a regular camera. You have GPS. You have really accurate data as to where the case is. You have GPS record and photo from that site. After the recent storm, they talked to the GIS folks about another software adaptation that would use the same system but allow them in an incident like that again to quickly go and ascertain damage and get the data to the Federal government quicker. It really has a lot of applications. It is essentially a rugged laptop computer. It is much like an iPad but set up really well for this kind of work. Councilmember Bolkcom asked how many the City had. Mr. Hickok replied, the City has one in Community Development and one in Engineering. Councilmember Bolkcom asked if any computers can talk to this. Mr. Hickok replied, yes, it is like a laptop. They have software made specifically for Code Enforcement. They have talked to the Fire Department about applications they might use it for. FRIDLEY CITY COUNCIL MEETING OF AUGUST 22, 2011 PAGE 4 Pat Wolf actually helped pay for it through the Section 8 program. It has rental housing applications the City can use it for. Councilmember Varichak asked how much it cost. Mr. Hickok said he believed the system, with all the attachments and the software, was about a $4,000 investment. APPROVAL OF PROPOSED CONSENT AGENDA: APPROVAL OF MINUTES: City Council Meeting of July 25, 2011. APPROVED. OLD BUSINESS: 1. Second Reading of an Ordinance Under Section 12.06 of the Fridley City Charter Declaring Certain Real Estate to be Surplus and Authorizing the Sale Thereof (Sale of Land to James and Mary Uthe). William Burns, City Manager, stated last year Council vacated 73 '/z Avenue near Highway 65. The south half of the right-of-way reverted to Ashland Oil and the north half reverted back to the City. Ashland has since sold their portion of the right-of-way to a specialty-clothing supplier who wants to use the property as well as the northern half of the vacated roadway for a specialty clothing store. The clothing store people would now like to buy the northern half of the vacated roadway from the City. Staff has agreed to the sale of the property for $7,362.70 ($1 per square foot) as long as the utility easements remain in place. Staff recommends Council's approval. WAIVE THE READING OF THE ORDINANCE AND ADOPTED ORDINANCE NO. 1285 ON SECOND READING AND ORDERED PUBLICATION. NEW BUSINESS: 2. First Reading of an Ordinance Recodifying The Fridley City Code by Amending Appendix F to Provide for the Adjustment of Salaries for the Mayor and Councilmembers in Accordance with Section 2.07 of the Charter of the City of Fridley. William Burns, City Manager, stated the ordinance provides for a 1 percent increase for the Mayor and Council for 2012. This is the same increase given to non-union employees for 2012 and represents the first pay increase since 2009. FRIDLEY CITY COUNCIL MEETING OF AUGUST 22, 2011 PAGE 5 The annual salaries for the Mayor and Council for 2012 would be as follows: Mayor................................ Council Member-at-Large.. Ward Council Members ..... $10,687.20 $ 8,763.08 $ 7,780.11 Dr. Burns stated staff recommends Council's approval. The reason this is on the agenda now is because of State law which regulates the timing for consideration of council and mayoral salaries. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 3. Resolution Declaring Costs to be Assessed and Ordering Preparation of Proposed Assessment for Street Improvement Project No. ST. 2010-1A. William Burns, City Manager, stated this resolution directs the preparation of the assessment roll for the 2010 street improvement project. The assessment was delayed pending the satisfactory completion of the project. The assessment for the 192 properties will be applied for ten years at a 6.5 percent interest rate. Staff recommends Council's approval. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 4. Resolution Directing Publication of the Hearing on the Proposed Assessment for the Street Improvement Project No. ST. 2010-1A. William Burns, City Manager, stated this resolution establishes October 10 as the public hearing date for the assessment hearing on the 2010 street improvement project. The amount to be assessed is $269,162.08. This amounts to $1,370.62 for each of 192 property owners. There is also one commercial assessment. The hearing notice will be published in the September 15, 2011, edition of the Sun Focus newspaper. Staff recommends Council's approval. ADOPTED RESOLUTION NO. 2011-33. 5. Claims (151686-152039) THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 6. Licenses APPROVED THE LICENSES AS SUBMITTED AND AS ON FILE. FRIDLEY CITY COUNCIL MEETING OF AUGUST 22, 2011 PAGE 6 7. Estimates Ron Kassa Construction 6005 East 250th Street Elko, MN 55020-9447 20ll Miscellaneous Concrete Repair Project No. 401 Estimate No. 4 ............................................. $6,472.73 Concrete Idea, Inc. 13961 — 44th Lane NE St. Michael, MN 55376 2010 Miscellaneous Concrete Repair Project No. 395 FINAL ESTIMATE ................................... $ 330.68 APPROVED. APPROVAL OF PROPOSED CONSENT AGENDA: Councilmember Bolkcom asked that Item Nos. 2 and 3 be removed. Pam Reynolds, 1241 Norton Avenue NE, asked that Item Nos. 2 and 5 be removed. MOTION by Councilmember Barnette to approve the consent agenda with the removal of Item Nos. 2, 3, and 5. Seconded by Councilmember Varichak. 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 with the addition of Item Nos. 2, 3, and 5. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 2. First Reading of an Ordinance Recodifying The Fridley City Code by Amending Appendix F to Provide for the Adjustment of Salaries for the Mayor and Councilmembers in Accordance with Section 2.07 of the Charter of the City of Fridley. FRIDLEY CITY COUNCIL MEETING OF AUGUST 22, 2011 PAGE 7 MOTION by Councilmember Bolkcom to receive a memorandum from Dr. Burns dated August 18, 2011. The memorandum is a comparison of salaries of City Councils in surrounding cities. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Councilmember Bolkcom asked Dr. Burns to summarize what the memorandum states. Dr. Burns stated the memorandum was prepared by Deb Dahl. It compares the salaries paid to City Council members in surrounding cities. Mayor Lund asked if Fridley is lower than its peers. Dr. Burns replied, yes, it is lower. They compared approximately 27 cities. Councilmember Bolkcom stated she removed the item from the consent agenda as she is going to vote against the raise. Councilmember Barnette stated he is making almost $1,500 less. However, very few cities have a councilmember-at-large so it is very unrealistic. He also thinks this is a very inappropriate time to accept a salary increase. Councilmember Varichak stated she also agrees with Councilmembers Bolkcom and Barnette. Councilmember Saefke stated the approximate $70 a year is not going to make or break him. He does not think it would be wise at this time to take the increase. The dollars they save could probably be used for something more useful, although it is appropriate that it be brought before them and the public. Sometimes people are under the impression they are overpaid, etc. With the comparison, it is pretty clear their salaries are below average. Councilmember Bolkcom referred to an e-mail she believes they all received from a gentleman who thought they should not get an increase as he did not get any social security increase because of inflation. Ms. Reynolds asked regarding the comparison, she asked if they included the total compensation package. Mayor Lund replied, yes, it is included. Joanne Zmuda, 6051 Fourth Street NE, stated when she worked for Hennepin County, she thought in the fall they used to get a pamphlet that gave them a list of all the benefits plus their salaries so the County would show them how well they were being paid. She thinks the Fridley residents are entitled to see that total figure, too. Mayor Lund stated it is in the minutes so it is of public record. FRIDLEY CITY COUNCIL MEETING OF AUGUST 22, 2011 PAGE 8 Ms. Zmuda stated not everybody sees the minutes and suggested Dr. Burns could put it in the ne�t newsletter. MOTION by Councilmember Bolkcom to not adopt the ordinance on first reading. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 3. Resolution Declaring Cost to be Assessed and Ordering Preparation of Proposed Assessment for Street Improvement Project No. ST. 2010-01A Councilmember Bolkcom asked if this assessment roll was related to the people who had it removed last year because of the issues they had with the street. They received periodic memorandums related to some of the improvements and some of the things that had been done. She asked if everything had been resolved. James Kosluchar, Public Works Director, replied, they actually had a change order item that they were trying to get on tonight's agenda but were not able to. They are still doing some negotiation with the contractor. He would expect at the September meeting they will see that item and talking about the improvements as they stand right now. Councilmember Bolkcom stated other than that one change order that most of those residents in the area were not happy about, they are now relatively satisfied. Mr. Kosluchar stated they were making sure the contractor held to the requirements in the contract and then there were subsequent agreements. They should be resolved and in order by the time the hearing goes on. He does not believe there is anything outstanding. They were doing inspections a couple of weeks ago out in the field looking at a couple of last items. Councilmember Varichak asked Mr. Kosluchar whether they have heard anything from neighbors after they had their seal coating put on. Mr. Kosluchar replied said they had. One resident said he did not like the type of seal coating, the rock, and the rough surface. Basically after the rain storm in July they heard from some others who live downstream from the McKinley/61st intersection where they put in a valley gutter which a lot people did not like up the hill. The residents down the hill have informed them that they really appreciate having it put in, and they did not get flooded because of it. Dr. Burns stated he thinks they had a correction as late as within the last two weeks with an issue a resident had. They went out and did find something wrong and fixed it. Councilmember Varichak stated she has not received any telephone calls from the resident. MOTION by Councilmember Bolkcom to adopt Resolution No. 2011-32. Seconded by Councilmember Saefke. FRIDLEY CITY COUNCIL MEETING OF AUGUST 22, 2011 PAGE 9 UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 5. Claims (151686-152039). Ms. Reynolds, 1241 Norton Avenue NE, asked whether the entry for the new police cars was paid for by the 2011 equipment bond. Dr. Burns replied it should have come out of equipment bonding. Ms. Reynolds stated regarding page 2, $400 is a lot for hostas. They could have called her and she would have brought as many as they needed. She thinks that would have been an opportunity for an "adopt a park" Ms. Reynolds stated on page 16 there is a down payment for a gazebo. What is that for? Mayor Lund stated that was for the gazebo that was vandalized and burned to the ground at Springbrook Nature Center. Ms. Reynolds asked did that not get burned down previously. Mayor Lund replied, there was previously a small fire that charred a few boards four or five years ago. Dr. Burns stated he assumes it is that gazebo, but he can check on it. Ms. Reynolds stated she believed it was as it is the only one. Ms. Reynolds said on page 17 the amount of $21,115 was paid to Advantage Signs & Graphics for street sign replacement. She asked what that was for. Mayor Lund replied that is for the Federal mandate that all cities will replace all traffic signs with the new high reflectivity. The City's were done in-house as it has its own sign-line making capabilities. Rather than hiring out the project out, staff is doing it over a several year timeline. James Kosluchar, Public Works Director, stated it is a Federal mandate and is reflectivity of traffic signage. MOTION by Councilmember Bolkcom to approve Claim Nos. 151686-152039. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF AUGUST 22, 2011 PAGE 10 OPEN FORUM: Bruce Ray, Fridley Terrace Mobile Home Park, stated he is the block captain. Over the past several weeks he has tried to coordinate and work a little bit better with the Police Department and has not gotten a lot of good response. They have a problem with people speeding through the mobile home park and not stopping at stop signs. There are a lot of little kids playing in the street. He asked the Mayor and Council if they could help encourage the Police Department to assist with more frequent patrols throughout the mobile home park. Mayor Lund stated he did talk to the resident park manager about his cooperation. He will also talk to the Police Department. Of course they have limited resources. Maybe just the presence of Community Service Officers would be helpful. He suggested getting their license plate numbers and turning them into 911 or the non-emergency number. He could contact the Mayor or any of the councilmembers. The police will not issue a ticket, but they will talk to the car owner or send them a notice. Hopefully that will instill a little bit more cooperation and traveling at the required State law speed limit of 10 mph. Especially in that park because it does not have off-street parking, and the cars limit the visibility and view for anybody darting out in the street for kids or a ball, etc. He can see this as a valid safety concern. Councilmember Bolkcom asked Mr. Ray if he has talked to the resource officer. Mr. Ray replied, yes, he has. Councilmember Bolkcom asked about the issues related to the bus stop on University. Dr. Burns replied, Michael Johnson, the administrator for Talecris Plasma Center will come to explain his organization and what they do and provide an update. He has generally cooperated in finding a way to get the bandages picked up at the bus stop and providing some other measures that will keep clientele from littering the stop. Mr. Johnson was initially going to have a garbage hauler put a can out there, but the haulers will not put a garbage can on public property. He has to put his own garbage can there and empty it. PUBLIC HEARING: 8. Consideration of Revocation of Special Use Permit, SP #08-07, for Simba Collision, Allowing Limited Outdoor Storage of Construction Materials and Equipment and Vehicles Within a Fenced-In Area in the Rear of the Property, Generally Located at 7865-69 Beech Street (Ward 3) (Continued May 23, 2011). MOTION by Councilmember Bolkcom to remove this item from the table. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY, AND THE ITEM WAS REMOVED FROM THE TABLE AT 8:21 P.M. FRIDLEY CITY COUNCIL MEETING OF AUGUST 22, 2011 PAGE 11 Scott Hickok, Community Development Director, stated the reason for the previous hearing was there were violations of a few stipulations of this special use permit. Part of the problem was they were regularly exceeding the nine parking stalls on the site and doing business out in the street--actually working on cars in the street. They were routinely storing inoperable or unlicensed vehicles outdoors and using the street to maneuver and park vehicles. Mr. Hickok on May 23, 2011, a hearing was continued with the directions for the property owner to present a plan with corrections to City staff within 30 days. That did happen and it was a successful venture. The property owner and the body shop owner met with staff to discuss corrections. The property owner followed up with a written plan that was well executed. Mr. Hickok stated while they continue to see a large amount of vehicles stored on the site during the day, the use of the street appears to have been eliminated. Cars parked outside are licensed and operable. While staff inspected the site often during the day, the inspections occurred less often at night. It does appear all unlicensed and inoperable vehicles are inside the building at night as well. Mr. Hickok stated staff recommends Council close the public hearing. They agreed to maintain the same stipulations that were originally found in SP #08-07 for outdoor storage. Staff will continue to monitor conditions on the site, particularly in the evenings. Councilmember Bolkcom stated the owner has also talked to the main person who delivers cars, too, correct? Mr. Hickok replied, that is correct. They have posted a sign for any tow truck driver who is not familiar with their site, indicating where they can park vehicles. MOTION by Councilmember Bolkcom to close the public hearing. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY, AND THE HEARING WAS CLOSED AT 8:25 P.M. NEW BUSINESS: 9. Resolution Certifying Proposed Tax Levy Requirements for 2012 to the County of Anoka. Darin Nelson, Finance Director, stated the proposed 2012 levy complies with the City Charter requirements regarding inflationary increases and public disclosure. The total proposed 2012 levy equals $10,703,739 or 1.85 percent more than the 2011 levy. Mr. Nelson stated at this point in time, the effect is unclear as to what impact this 1.85 percent increase will have on the average homeowner in Fridley. During the legislature's special session in July, part of the budget-balancing package included the elimination of the MVHC (market FRIDLEY CITY COUNCIL MEETING OF AUGUST 22, 2011 PAGE 12 value homestead credit). The MVHC provided homestead properties with a credit on their property taxes that provided property tax relief to lower valued homes. That credit was then supposed to be paid back to the cities, counties, and schools in the form of State Aid. This State Aid effectively reduced our certified levy. For example: If the city levied $10,000,000, we would effectively receive $9,600,000 from taxpayers and $400,000 from the State. Mr. Nelson stated the problem with the State Aid payments to the local jurisdictions is that those payments rarely happened. In fact, in the ten years the program was in existence, the State only fully funded the program twice. This has caused the State to be in effect a delinquent taxpayer to the City. Mr. Nelson stated to remedy the "delinquent tax" payments, the State eliminated the credit which also helped in part to solve their budget deficit. However, the State still wanted to provide relief to lower-valued homestead properties. As a result, the State has enacted a Market Value exclusion, different from the credit, for homesteaded properties valued up to $413,800. This exclusion effectively reduces the taxable value of a homestead property. This exclusion, since it is no longer funded by the State, must be funded from other taxable properties within the jurisdiction. Essentially, the property tax relief granted to lower-valued homestead properties will be supported by GI, apartments, and higher-valued residential properties. At this time, the County does not have exact calculations on what effect the exclusion will have on properties throughout the city. Preliminary tax estimates are even difficult to determine due to both the shift in property valuations and the new market value exclusion. Mr. Nelson stated on the tax property statement there will be a new line for, "Homestead Exclusion." It will be a reduction in the taxable value of the property. There is a cap of $304 at the home value at $76,000 and, as you scale downward it is eventually -0- at the $413,000 home. Since this exclusion is no longer funded by the State, in effect it must be funded from other taxable properties within a jurisdiction. The property taxes granted to lowered-value homestead properties will be supported by commercial/industrial, apartments, and higher valued residential properties. Mr. Nelson stated the County does not have exact calculations as to what the exclusions will be. It is very unique for each city, because the makeup of the commercial/industrial vs. residential will determine what that shift is and if there is a credit to those lowered valued homes or not. On average, the residential property values will decline 3.2 percent and commercial/industrial values will decline 2.3 percent. On the other hand apartments will decline an average of 6.4 percent. Truth in Taxation notices will be mailed to all property owners mid-November. He is hoping to have estimates before then as to what the effect will be. Mr. Nelson stated in November homeowners will see what the 1.85 percent levy increase will do for their property taxes. Recapping the 2012 proposed levy, it is at $10,703,739 compared to the 2011 levy of $10,509,317. This is an increase of just over $194,000 or the 1.85 percent which is the amount the City is restricted to by the Charter due to the CPI index. FRIDLEY CITY COUNCIL MEETING OF AUGUST 22, 2011 PAGE 13 Mr. Nelson stated this is a"proposed" levy and is required to be provided to the County Auditor by September 15. This "proposed" levy is the maximum that can be certified to the County Auditor in December. This amount can be reduced prior to that time, but cannot be increased. Mr. Nelson stated in keeping with State law regarding budget hearings for the 2012 budget, we are announcing tonight that the public hearing for the 2012 Budget and Tax Levy will be held on December 5 at 7:30 p.m. at the Fridley Municipal Center. Mr. Nelson stated we are also scheduled to hold the second of two budget work sessions on October 17 at 6:00 p.m. in Meeting Rooms 1 and 2 at the Fridley Municipal Center. Mr. Nelson stated staff recommends Councils approval of the resolution. Councilmember Bolkcom asked why apartments are increased at a much higher rate. Mr. Nelson replied, he is not sure. He would have to talk to the City Assessor. MOTION by Councilmember Barnette to adopt Resolution No. 2011-34. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 7. Resolution Adopting the 2012 Proposed Budget. Darin Nelson, Finance Director, stated for 2012, the certification of the Proposed Budget must be to the County Auditor by September 15 in accordance with State law regarding budget levies. The City is following all of the open process requirements laid out in Chapter 275 of State Statutes. By having this item on the agenda this evening, the City is complying with Section 7.05 of the City Charter requiring that the proposed budget be a principal item of business at the last regular meeting of August. Mr. Nelson stated for 2012, the economy continues to play a role in the difficulty of developing departmental budgets that continue to provide the same level of service as provided in the current year's budget. A major issue the City grapples with annually, is the State's economic condition and the loss or decertification of Local Governmental Aid (LGA) and Market Value Homestead Credit (MVHC). The City has once again made budget cuts and will continue to strive to provide the same level of service. Mr. Nelson stated the 2012 Proposed Budget is being presented to you this evening along with a resolution to approve it as a Proposed Budget for 2012. As in the past, the City Manager will be providing the Mayor and Council an in depth overview of the 2012 Budget at the December 5 Council meeting in the form of a public hearing. The remaining steps in the budgeting process are as follows: FRIDLEY CITY COUNCIL MEETING OF AUGUST 22, 2011 PAGE 14 • Council Budget work session is to be held on October 18. (Second of two work sessions. The first was on June 20.) • Public hearing on the budget on December 5, which will include discussion on both the levy and budget resolutions. • Resolutions approving both the 2012 tax levy and the budget at the December 12 Council meeting. Mr. Nelson stated the General Fund is increasing 1.1 percent or just over $150,000. That increase includes some items that were not funded in the previous years; for example, the IT depreciation came back at a 50 percent level. The Special Revenue Funds are increasing 15.4 percent. A large ticket item taken out of the Special Revenue Fund, the City will be replacing a lot of the cable television equipment. That has dedicated resources from the City's cable franchise fees covering those expenses. The Capital Project Funds might jump up a little bit more. There is a little more activity going on in those capital project funds. One of the big items in there is the Capital Equipment Replacement Fund which is a new fund for this year. The City will be replacing a fire truck pumper which is about $600,000, along with some other Police cars and a Public Works truck out of that. The street improvements included is projected to be higher. He thinks 2011 the City did not do as much activity as in prior years. Mr. Nelson stated another large improvement as part of the general capital improvements is the Municipal Center is in need of a new roof, etc. The amount of $200,000 is included for that proj ect. Mr. Nelson stated one additional change that needs to be noted that did not make it into the proposed budget, but will be in the final budget. The DEA task officer assignment is ending and is being moved back to the General Fund from the Police Activity Special Revenue Fund. This change will be reflected in the final Budget. Mr. Nelson stated the budget before you should be viewed as the "Proposed Budget" for 2012. Staff recommends approval of the resolution. Councilmember Bolkcom asked about the cable fund. That money comes in through its franchise fees and cannot go into any other fund. It has to go towards cable-related items. Mr. Nelson replied that is a dedicated resource. Those franchise fees must be used for cable- related activities and purchases. MOTION by Councilmember Varichak to adopt Resolution 2011-35. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF AUGUST 22, 2011 PAGE 15 11. Contract for Inspection Services with Metropolitan Council. Scott Hickok, Community Development Director, stated the Metropolitan Council chose to opt out of its contract to have certain client services performed by Fridley staff for their Section 8 Housing Program. Those Section 8 clients will now obtain their client services directly from Metropolitan Council staff. Mr. Hickok stated under the proposed contract, Pat Wolfe, Fridley's Section 8 Housing Coordinator, will not perform services such as client screening and voucher disbursement, instead, she will be involved with rental inspection. In assisting with the transitioning of out of client services, the Met Council staff asked if Ms. Wolfe and the City would still be interested in performing rental unit inspections for them. Mr. Hickok stated Pat will be working with the City's rental inspection staff to manage the inspections of 1, 2 and 3 unit buildings. Her ability to efficiently perform for the City's rental inspection department and still maintain rental inspection duties exists. In fact it will be very efficient. Mr. Hickok stated by continuing a relationship with the Metro Section 8 program through inspection of the units to be rented, the City can assure the units are in proper order, and the City's housing stock is maintained. Mr. Hickok stated with Pat managing both the City Rental inspection of 1, 2 and 3 unit buildings and the Metro Section 8 inspections, much efficiency can be built into the process. Mr. Hickok stated by continuing the City's relationship with the Metro Section 8 Program through the inspections of units to be rented, the City can assure the units are in proper order; and the City's housing stock is maintained. Mr. Hickok stated each inspection will be valued at $26.00. Each unit typically requires 2 inspections. Like the revenue paid to the City for the Section 8 Program from previous years, this will provide some revenue to offset future staff costs and to maintain the inspector position. Mr. Hickok stated contract terms match the standard language of all previous Metropolitan Council City Contracts relative to Section 8. The key difference is the scope of work and the rate of pay. This contract is very narrow in its design. It is for only the rental unit inspection portion of the Section 8 program, and it is a smaller rate commensurate with the task Because of the similarity of task and efficiency that this will bring to both types of rental inspections, staff recommends approval of this contract. The term will be for 5 years, but with a termination clause for either party. If passed the Met Council, would adopt it and the contract would go into effect in September. Councilmember Saefke asked if the contract had been reviewed by the City Attorney. Mr. Hickok replied yes. FRIDLEY CITY COUNCIL MEETING OF AUGUST 22, 2011 PAGE 16 MOTION by Councilmember Bolkcom to receive a memorandum dated August 22, 2011, and Contract for Services from Scott Hickok Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Councilmember Saefke asked Mr. Hickok if he discussed this with Pat Wolfe. Mr. Hickok replied yes. She is looking forward to the task. Councilmember Bolkcom asked Mr. Hickok to say how it helps the Fire Department and the rental inspections, because the City is down a person. Dr. Burns stated up to this point the City inspects rental units through the firefighters and through the paid on-call firefighters. It does take a substantial amount of their time. They keep up with it, but this will help them out quite a bit. Councilmember Bolkcom asked about Pat Wolfe having to go back more than twice. Dr. Burns replied they often have to reinspect. Sometimes they go back 3 or 4 times. Councilmember Bolkcom asked if Pat Wolfe would go back and do those e�tra inspections. Mr. Hickok replied, for those inspections that are in 1 through 3 unit buildings, Ms. Wolfe would be handling those. Ms. Wolf will no longer be dealing with the clients themselves, just the units they are going to be moving into. Dr. Burns stated just to be clear, Ms. Wolfe is being employed for approximately the ne�t three years through funds that were leftover from the Section 8 Program. The item tonight has to do with the special contract for these inspection Section 8 units, but the bulk of the money to fund Pat Wolfe in this role is from resources other than the inspection money. Mr. Hickok stated and that is because there is a certain dollar amount per client for the Section 8 program. That essentially is meant to cover the overhead of the City's staff person. The HUD dollars would go through the Metropolitan Council which would go to the City of Fridley because they are performing the client services here. Ms. Wolf also performed inspections in Spring Lake Park and St. Anthony Section 8 inspections and clients' services as well. As a result, she built up a nice account that will now be used for her continued employment in doing this rental inspection. The ne�t three years are coming out of what Ms. Wolf has earned in the Section 8 program. MOTION by Councilmember Barnette to approve the Contract for Inspection Services with the Metropolitan Council. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF AUGUST 22, 2011 PAGE 17 11. Informal Status Reports There were no informal status reports. ADJOURN. MOTION by Councilmember Barnette, seconded by Varichak, to adjourn. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MEETING ADJOURNED AT 9:01 P.M. Respectfully submitted by, Denise M. Johnson Scott J. Lund Recording Secretary Mayor