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06/25/2012 - 7533'• � CITY COUNCIL MEETING OF JUNE 25, 2012 CIiY OF FRIDLEY The City of Fridley will not discriminate against or harass anyone in the admission or access to, or treatment, or employment in its services, programs, or activities because of race, color, creed, religion, national origin, sex, disability, age, marital status, sexual orientation or status with regard to public assistance. Upon request, accommodation will be provided to allow individuals with disabilities to participate in any of Fridley's services, programs, and activities. Hearing impaired persons who need an interpreter or other persons with disabilities who require auxiliary aids should contact Roberta Collins at 572-3500. (TTD/572-3534) PLEDGE OF ALLEGIANCE. PROCLAMATION: Women ofToday Founder's Day—July 1, 2012 APPROVAL OF PROPOSED CONSENT AGENDA: APPROVAL OF MINUTES: City Council Meeting of June 11, 2012 NEW BUSINESS: 1. Resolution Appointing an Absentee Ballot Board for the 2012 Election Cycle ................................................................ 1- 2 2. Resolution Appointing Election Judges for the 2012 Primary and General Elections ............................................................ 3- 5 3. Resofution Approving the Revised Investment Policy for the City and the Fridley Housing and Redevelopment Authority .............................................................................. 6 - 18 1 � CffY OF FRIDLEY FRIDLEY CITY COUNCIL MEETING OF JUNE 25, 2012 7:30 p.m. - City Council Chambers Attendance Sheet Please print name address and item number vou are interested in Print Name (Clearly) Address Item No. �ae�., � n � � C�S � 1 �l 'te�vt '� , FRIDLEY CITY COUNCIL MEETING OF JUNE 25. 2012 PAGE 2 APPROVAL OF PROPOSED CONSENT AGENDA: NEW BUSINESS (CONTINUED): 4. Claims (155556 — 155741) ............................................................................. 19 - 33 5. Licenses ........................................................................................................ 34 - 35 6. Estimates ...................................................................................................... 36 ADOPTION OF AGENDA: OPEN FORUM, VISITORS: Consideration of items not on Agenda — 15 minutes. NEW BUSINESS: 7. Receive Bids and Award Contract for Municipal Center Roof Replacement Project No. 418 ................................................... 37 - 41 8. Motion to Approve the Purchase of a New Imaging System and an Operating Transfer Between the Employee Benefits Internal Service Fund and the Information Services Internal Service Fund .................................................................................... 42 - 44 9. Informal Status Reports ................................................................................ 45 ADJOURN. � .� . .� I ! / / ! WOMEN OF 1�ODAY FOLJNDER'S DAY J[JLY i, zois C�� WHEREAS, the Minnesota Women of Today and the Fridley Women of Today have set aside July 1 Co recognize the many communiry activiries ofdedicated Women ofToday members across the state; and {YHEREA.S, the Minnesora Women of Today is an organiaation of over 1,600 women in 75 chapters across the state; and WHEREr1S, the Minnesota [3'omen of Today and the Fridley Women of Today are dedicated to actively promotrng such public awareness and service programs as: Domestic Ytolence Prevention, People with Development Challenges, March for Babies, the Amencan Cancer Sociery, Can Do Canines, the Shriner's Hospital, as well as the SACA Food Drive, School Supply Drive and Santa's Workshop; and WHEIiEA.S, the Minnesota Women of Today and fhe Fridley Women of Today provide personal enrichment and leadership training; and WHEREAS, the Women of Today believe that "Through us, great lessons can 6e Learned, worthy deeds performed, and a hand offellowship extended to millions of women everywhere. " NOW, THEREFORE, BE IT RESOLVED, that I, Scott J Lurul, Mayor of the Ciry of Frrdley, do hereby proclarm July 1, 2011, as Women ojToday Founder's Day in rhe City ofFridley, Mrnnesora. IN WITNESS WHEREOF, I have set my hand and caused the seal of the City of Fridley to be affixed this 25`� day ofJune, 2Q12. �� ScoK J. Lund Mayor CITY COUNCIL MEETING CITY OF FRIDLEY JLTNE 11, 2012 The City Council meeting far the City of Fridley was called to order by Mayor Lund at 730 p.m. ROLL CALL: MEMBERS PRESENT: Mayor Lund Councilmember-at-Large Barnette Councilmember Saefke Councilmember Varichak Councilmember Bolkcom OTHERS PRESENT: William Burns, Ciry Manager Darcy Erickson, City Attorney Scott Hickok, Community Development Director James Kosluchar, Public Works Director Darin Nelson, Finance Director/Treasurer Dave Mol, HLB Tautges Redpath Ltd. John Flora, 573 Rice Creek Tenace Fadumo Yusuf, 6140 Fifth Street NE Connie Trentor, 6452 Able Street PRESENTATION: Auditor's Update by Dave Mol from HLB Tautges Redpath, Ltd. APPROVAL OF PROPO5ED CONSENT AGENDA: APPROVAL OF MINUTES: City Council Meeting of May 212012 APPROVED. NEW BUSINESS: Receive the Minutes fram the Planning Commission Mee6ng of May 16, 2012. RECEIVED. FRIDLEY CITY COUNCIL MEETING OF JUNE 11, 2012 PAGE 2 2. Resolution Approving a Minor Comprehensive Plan Amendment, CP #12-01, to Recognize the East River Road Corridor Study in the Transportation Chapter of the Fridley 2030 Comprehensive Plan. William Burns, City Manager, stated staff xecommends Council approve a minor Comprehensive Plan amendment change to recognize reference to the East River Road Corridor study in Fridley's 2030 Comprehensive Plan. The Planning Commission gave its unanimous consent to this change at its May 16 meeting. Staff recommends CounciPs approval. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 3. Special Use Permit Request, SP #12-02, by Landmark Architectural Signs, on Behalf of St. William's Church, to Allow the Construction of a New Free-Standing Sign that Incorporates an Electronic Message Center Sign, Generally Located at 6120 Fifth Street N.E., and Resolution Approving Special Use Permit, SP #12-02, for Landmark Architectural Signs, on Behalf of St. William's Catholic Church, the Property Owner of 6120 Fifth Street N.E. (Ward 1). William Burns, City Manager, stated Steve Spry of Landmark Architectural Signs, on behalf of St. William's Church, is requesting a special use permit to allow the construction of a AO square foot, free-standing electronic sign at St. William's Church. The Planning Commission gave its unanimous approval to this request at its May 16 meeting. Staff recommends Council's approval. Councilmember Barnette asked where they were with the removal of the gas station on the corner. Scott Hickok, Community Development Director, replied they were not successful in the first round of TOD grant applications with the Met Council. They have not given up hope that there might be a grant application out there. They aze working with the landowner to have him rezone it so the potential for redevelopment of this site will be better and the zoning will actually fit with what the land size is. They are also encouraging the owner and have even offered to loan them money potentially through the HRA at a favorable interest rate so they can do the demolition. Staff is prepazing a budget for them based on the analysis they had done as to the cost of taking the building down. Mayor Lund asked Mr. Hickok whether the owner is talking with staff. Mr. Hickok replied, yes. APPROVED SPECIAL USE PERMIT AND ADOPTED RESOLUTION NO. 2012-34. FRIDLEY CITY COUNCIL MEETING OF JUNE 11, 2012 PAGE 3 4. Resolution Receiving Report and Calling for a Public Hearing for Oak Glen Creek lmprovement Project No. 380. William Burns, City Manager, stated on February 13 Council approved a resolution directing the prepazation of a feasibility report for the Oak Glen Creek Improvement Project. The City's Public Works staff and representatives of the Anoka County Conservation District subsequently reviewed the project and assessments for the project with residents on Mazch 28 and again on May 15 when the project guidelines changed somewhat. While not everyone agrees with the assessments, there is a suong consensus the project should proceed. A feasibility report has been included in Council's reading packet. Staff recommends CounciPs approval. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 5. Approve Facilities Lease Agreement Between the City of Fridley and the City of Minneapolis Allowing the Fridley Fire Department to Use the Minneapolis Fire Department Training Facility. William Burns, City Manager, stated Fire Chief John Berg is requesting Council approve a lease agreement with the City of Minneapolis that will allow Fridley's firefightexs to train at the t�vo- story live burn building at the Minneapolis fire training site in Fridley. The Minnesota Board of Firefighter Training will be providing grant money to cover Fridley's cost for the use of these facilities in 2012. Staff recommends Council's approval. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 6. Motion to Approve the Disbursement of the Twin Cities Gateway Community Grant Funds; and, Approve the 2012 Member City Marketing Grant Agreement Behveen the City of Fridley and Twin Cities Gateway. William Burns, City Manager, stated Fridley is a member of the Twin Cities Gateway, a tourism bureau, which collects a 3 percent lodging tax on motel/hotel properties in nine-area cities. Each year, the Twin Cities Gateway distributes marketing grants which, according to our agreement with them, must be used for marketing and promoting the City as a tourist or convention center. Each city's annual share is calculated with a base amount distributed evenly among the nine cities and a second amount based on percentage of hotel revenues collected in the previous year. Dr. Burns stated Fridley's base amount is $3,000; and its amount based on percentage of the total hoteUmotel tax collected is $2,352. Staff is recommending that Council allocate its $5,352 as follows: Fridley `49er Days, $2,400; Springbrook Nature Center's Pumpkin Night in the FRIDLEY CITY COUNCIL MEETING OF JUNE 11, 2012 PAGE 4 Pazk, $1,100; the Recreation Department's Winterfest program, $1,100; and the Springbrook Nature Center's Spring Fling, $752. Staff recommends Council approve these disbursements and authorizes the City Manager to execute the 2012 Member City Marketing Gxant Agreement. APPROVED. 7. Claims (155183 —155555). Councilmember Bolkcom referred to page 41 where it should say "plumbing" instead of "plumping" in the descriprion column fox Terry Overacker Plumbing. APPROVED AS CORRECTED. 8. Licenses. APPROVED THE LICENSES AS SUBMITTED AND AS ON FILE. APPROVAL OF PROPOSED CONSENT AGENDA: Councilmember Bolkcom requested removal of Item Nos. 2, 4, and 5. MOTION by Councilmember Barnette to approve the consent agenda with the removal of Item Nos. 2, 4, 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, 4, and 5. Seconded by Councilmember Saeflce. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. OPEN FORUM: John Flora, 573 Rice Creek Tenace, presented a petition from 20 residents representing 16 properties on the north side of Rice Creek Terrace, between Sixth Street and Madison Avenue. It is requesting Council action to request Xcel Energy to loop, or any other action is necessary, to provide positive power line service to that neighborhood. On Memorial Day weekend, they were without power for 16 hours. It seems when there is a major rain event or storm, they do not have any power to their residences, and there are some medical services necessary in that azea for people using equipment. Therefore, they request Council to ucge Xcel Enexgy to do something, FRIDLEY CITY COUNCIL MEETING OF JUNE ll, 2012 PAGE 5 whether they put more circuit breakers in, bury some lines, or loop some lines, in order to provide them some positive power when they have these non-major storm events. Mr. Flora stated over a number of years now, they have had power outages even when there have been no major storms. It seems it involves that same area, the north side of Rice Creek Terrace. The south side has power. The people across the creek have power. However, that one little section of Rice Creek Terrace gets cut off. Mayor Lund stated he will look into it some more. They have had some conversation by e-mail, etc. His understanding from Xcel is that the only looping they ever do is those major transmission lines and not individual areas. Certainly burying the entire system is better, as it takes it away from any of these storm-related events, but that is an extremely expensive pxoposition. Mr. Flora asked why the other azeas do not lose their power. Mayor Lund said they will ask that question. In a specific geographic area, he does not know how well they maintain those records. In talking with City staff; it was mentioned that Mr. Flora's area lost it once this yeax, just recently, and Iost it twice last year. Dr. Burns stated three times last year. Councilmember Bolkcom asked if the other past outages have been as long as the 16-hour one. Mr. Flora replied, they have been and some have lasted for a couple of days. Dr. Burns stated the outages have been lazgely due to trees being blown over onto power lines, and they have to get the trees out of there and then reconnect the power lines. Mr. Flora replied, if there is a break; but they do not have that many trees falling down in their neighborhood. Dr. Burns stated but that is what happened on Memorial Day. Mayor Lund asked what the protocols or policies are. They are kind of governed by the Utility Commission. James Kosluchar, Public Works Director, stated the Council has a franchise agxeement with Xcel and in the agreetnent it delineates terms. He thinks it includes service outage limitations or requirements for sexvice. Mayor Lund stated they will look into seeing if there is more they can do. FRIDLEY CITY COUNCIL MEETING OF JUNE 11. 2012 PAGE 6 MOTION by Councilmember Saetke to receive the Petition to Encourage Xcel Energy to Loop Power, etc., in the Area of the North Side of Rice Creek Terrace, between Sixth Street and Madison Avenue. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Fadumo Yusuf, 6140 Fifth Street NE, stated she has been here a couple of times regarding a program for minority kids called "East African Services." Although they do not have their proposal in hand tonight, they are asking the City if it can help them during the summertime while the schools aze closed. They have about 20 to 25 kids in their program, and they do their after school program activities in the library every Tuesday and Thursday from 4 to 6 p.m. With the schools being closed, they are asking the City to provide some funds to help those kids to keep them busy during the summertime. They would like to bring their proposal to the City Council next time. Connie Trentor, 6452 Able Street, stated she is a volunteer with Ms. Yusu£ She answered an ad in the paper and has been helping through the school year and tutoring the children and helping them transition into the new communiry. She has been helping them with conflict resolution, reading, homework; and in the summer Ms. Yusuf wants to do other things with them. The money is not really there. Ms. Trentor thinks it is really beneficial to help the kids transition here. It would help the kids learn how to deal with each other a little better. Mayor Lund asked what the age group was. Ms. Yusuf replied K throughl2. Mayor Lund replied, he did not know about using City funds for this program; but it may be appropriate to have the Pazks and Recreation Department look at working with them or perhaps the school districYs community center could be used. Councilmember Bolkcom asked Mr. Hickok if there is any CDBG money. Could they get some help from the County? Mr. Hickok replied there still is the CDGB Program. Over the past few yeazs it has become fiercely competitive. Their focus has preriy much been on affordable housing and redevelopment in that regazd, but that is not to say there are not some good programs such as this one they could take a look at. He will give the speakers his card and they can contact him to get the information on how to contact the right people at the County. Councilmember Bolkcom stated they could also contact the County Commissioner Jim Kodiak, as there might be some other help through the County. FRIDLEY CITY COUNCIL MEETING OF JUNE 11. 2012 PAGE 7 OLD BUSINESS: 9. Second Reading of Ordinance to Amend the Fridley City Code, Chapter 205, to Allow a"Farmers' MarkeY' as an Accessory Use (Text Amendment Request, TA #12-01, by the City of Fridley); and, Adopt Official Title and Summary Ordinance. Scott Hickok, Community Development Director, stated Council held a public hearing on May 7, 2012, and the first reading of the item on May 21. At that meeting, additional questions were brought up, specifically relating to how farmers markets might �vork inside a building. Questions were also asked about allowing a property owner to sell produce from their residential property and what the regulations would be for somebody like Medtronic or another private entity who might want to have a private farmers' market on their property for their employees. Mr. Hickok stated the proposed ordinance before the Council is specifically related to farmers' markets that will take place outdoors. Staff proposed the outdoor limitation, as the City of Minneapolis recently modified their farmers' mazket Code when they had problems develQp with indoor markets occurring in industrial properties that were not properly designed for that use. Mr. Hickok stated a farmers' market inside an industrial building would be considered an assembly use and subject to the State Building Code requirements, meaning proper exits, bathrooms, ventilation, etc. Most of Fridley's industrial buildings would not meet such criteria without costly modifications. If it was not designed as an assembly area, it likely does not have the necessary accruements. Staff sees no problem with an indoor fanners' market in commercial buildings or institutional use buildings that meet the Building Code requirements for assembly. If Council would prefer to allow farmers' markets indoors, staff proposes that the word "outdoors" be removed from the first line of the farmers' mazket definition. Also, staff suggests an additional line be added to the requirements repeated in the various Zoning Code sections listed in the attached ordinance draft that states a new pazagraph, paragraph (n), "All State Building Code requirements for assembly use are met for indoor mazkets prior to their operation." This clause would allow the City to ensure that a building use for farmers' markets meets the necessazy Code requirements to ensure public safety. Mr. Hickok stated although this use is not ]isted as an allowable accessory use in our residential districts, staff would most closely relate this type of use to a garage sale. That is related to the question regarding residents selling gazden products in their driveways. Gazage sales are not listed as an accessoxy use either. The City currently has no regulations in its Code related to garage sales except for how it regulates the signs in the sign code. A garage sale is something that occurs with little disruption in the neighborhood unless it becomes perpetual which then the City can address through its home occupation ordinance. Therefore, if a resident would like to sell homegrown tomatoes from their property, staff would likely not get involved unless it creates a disruption to the neighboihood. If that occars, staff could effectively resolve that FRIDLEY CITY COUNCIL MEETING OF JUNE 11, 2012 PAGE 8 problem through the home occupation section of the Code. Staff does not believe any additional legislation would be required for that topic. Mr. Hickok stated, finally, as to private farmers' markets, City staff and the City Attorney have spent a lot of time discussing this topic and concluded that if a private business wants to offer this amenity to their employees only, this would be allowed without any special consideration by the City. This type of market which is attended by only the employees of the business, does not pose the same public safety issues related to traffic circulation, parking, and other things the City has considered as one that would be open to the public. The City has been approached by Medtronic in the past regarding this same question, and staff has advised them they have the authority to have a farmers' market for their employees only on their property. Many private corporations do provide exua services and benefits to their employees, and staff sees this as an extension of those services and would not get involved. It would only become an issue if the mazket is open to the public. The farmers' market permit would then be required to be approved by the City. Mr. Hickok stated staff recommends Council hold a second and final reading of this ordinance as amended. If Council feels so compelled to modify the definition to include "inside," they can do that. William Burns, Ciry Manager, stated they also changed the word "church" to "places of worship." Councilmember Bolkcom asked if they could just take the word "outdoor" out. It gives someone an opportunity to have an indoor market if it meets the State Code. MOTION by Councilmember Bolkcom to amend the definition of Fatmers Market in the ordinance by removing the word "outdoor" and to amend the ordinance to allow paragraph (n) which states, "All 5tate Building Code requirements, including but not limited to, the requirements for assembly use aze met for indoor markets." Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION by Councilmember Bolkcom to waive the reading of the ardinance and adopt Ordinance No. 1295 on second reading and adopt Official Title and Summary Ordinance No. 1295S and order publication. Seconded by Councilmember Saetke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF JUNE 11. 2012 PAGE 9 10. Second Reading of an Ordinance Amending Chapter 11 of the Fridley City Code Pertaining to General Provisions and Fees. Scott Hickok, Community Development Dixector, stated tlus simply adds to Chapter 11 a fee of $100 for the application. MOTION by Councilmember Bolkcom to waive the reading of the ordinance and adopt Ordinance No. 1296 on second reading and order publication. Seconded by Councilmember Saeflce. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED LJNANIMOUSLY. 2. Resolution Approving a Minor Comprehensive Plan Amendment, CP #12-01, to Recognize the East River Road Corridor Study in the Transportation Chapter of the Fridley 2030 Comprehensive Plan. Councilmember Bolkcom stated she knows there was a conversation about this at the Planning Commission meeting. She said just because they are approving the change, the Comprehensive Plan still stands. This is basically just making a minor change to the City's Comprehensive Plan, conect? Scott Hickok, Community Development Director, replied corcect. Just because the Comprehensive Plan was approved and written prior to the East River Road Corridar Project, this is simple language that adds a reference in there so people understand those changes are now part of the Comprehensive Plan. A lot of the funding the City would go after to do portions of this project will require the City recognizes this study in the Comprehensive Plan. It is a logistical housekeeping issue, and it is good to keep the Comprehensive Plan updated. MOTION by Councilmember Bolkcom to adopt Resolution No. 2012-33. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 4. Resolution Receiving Report and Calling for a Public Hearing for Oak Glen Creek Improvement Project No. 380. MOTION by Councilmember Bolkcom to receive the preliminazy report for Oak Glen Creek Improvement No. 380, dated June 2012. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION by Councilmember Bolkcom to adopt Resolution No. 2012-35. Seconded by Councilmember Saetke. FRIDLEY CITY COUNCIL MEETING OF JUNE 11. 2012 PAGE 10 UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. _S. Approve Facilities Lease Agreement behveen the City of Fridley and the City of Minneapolis Allowing the Fridley Fire Department to Use the Minneapolis Fire Department Training Facility. Councilmember Bolkcora stated she read the agreement and there are a lot of money signs. She asked if they have any idea what this would cost. William Burns, City Manager, replied he does not have an exact dollaz amount. His understanding is the only thing they want to do is use the two-story burn room in conjunction with several other fire deparhnents. He has a guazantee that the cost for the rental of that room will be covered from State funds. That is all they want this for. They passed a very similar agreement in 2003. Councilmember Bolkcom stated, right, but it was $500. It is not budgeted for the City? Dr. Burns replied, no. Darcy Erickson, City Attorney, stated she did review this agreement and attempted to e-mail Fire Chief Berg. She just had one slight recommendation with respect to the agreement. She would suggest they request a slight modification to the indemnification provision in two places. Minneapolis may or may not agree to it. Typically she would recommend the City limit iY to its tort cap liability. With municipalities, there is typically some agreement to do so. Councilmember Bolkcom asked if they should table this item. Attorney Erickson replied, she thinks they could approve it with the understanding and direction that Ciry staff or the City Attorney attempt to revise that provision. Councilmember Bolkcom asked whether it is a deal breaker on the City's part if they limit it. Mayor Lund stated they would still go ahead with it after they have approved it. Councilmember Bolkcom stated that because they have limited the City's tort liability, what is the difference in cost and everything else? What are they looking at? Attorney Erickson replied, the tort liability limit is $ I.5 million which is typically what the City has insurance coverage far. That is always a standing recommendation for agreements of this nature. Her xecommendation is to try and change it but, if not, the City has executed it before and it is a risk calculation. She could not speak to that. William Burns, City Manager, stated they should amend it with Attorney Erickson's tort language liability language. If it does not work, they can bring it back. FRIDLEY CITY COUNCIL MEETING OF JUNE 11. 2012 PAGE 11 Attorney Erickson referred to the Hold Harmless provision in paragraph 9 and the Data Practices Act in pazagraph 12. The language would be inserted at the last sentence in pazagraph 12 as follows: "The Lessee ...un to the maz�imum tort liabilitv limits set forth in Chaptex 466 of Minnesota Statutes. . . ." Attorney Erickson stated also insert similar language in paragraph 9 as follows: `'The Lessee. ..including attorney's fees up to the maximum tort liabilitv limits set forth in Cha�ter 46b of Minnesota Statutes. . . ." MOTION by Councilmember Bolkcom amending paragraphs 9 and 12 of the Facilities Lease Agreement by inserting the language, "un to the maximum tort liabilitv limits set forth in Chapter 466 of Minnesota Statutes" in paragraphs 9 and 12 as directed by the City Attorney. Seconded by Councilmember Vazichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION by Councilmember Bolkcom Approving the Facilities Lease Agreement between the City of Fridley and the City of Minneapolis Allowing the Fridley Fire Department to use the Minneapolis Fire Department Training Facility. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. NEW BUSINESS: 10. Informal Status Reports. Councilmember Bolkcom asked Mr. Kosluchar if East River Road will be torn up ttuough August for the gas line. Mr. Kosluchar replied he talked to CenterPoint about the schedule and, according to their initial schedule, yes. They were going to try to finish a few weeks before school started again. ADJOURN. MOT10N by Councilmember Barnette, seconded by Councilmember Varichak, to adjourn. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MEETING ADJOURNED AT 8:34 P.M. Respectfully submitted by, Denise M. Johnson Scott J. Lund Recording Secretary Mayor I" r arr oF FRIDLEY To: From: Date: Re: AGENDA ITEM CITY COUNCIL MEETING OF June 25, 2012 William W. Burns, City Manager��` Darin Nelson, Finance Director � Debra Skogen, City Clerk �� June 20, 2012 Resolution Appointing an Absentee Ballot Board for the 2012 Election Cycle The Minnesota State Legislature adopted legislation requiring County Auditors to appoint an absentee ballot board far the purpose of accepting and rejecting absentee ballots. On April 26, 2010, the City Council amended Chapter 4 of the Fridley City Code which authorized the establishment of an absentee ballot boazd. Section 4.03 of the City Code requires the City Council to appoint the names of the individuals that will serve on the absentee ballot hoazd. Anoka County has designated the City of Fridley as a location to conduct in person absentee ballot voting and will be designating the City's appointed members to their Absentee Ballot Board to serve as"Deputy County Auditor" for the purpose of accepting and rejecting in person absentee ballots. The absentee ballot board may consist of staff trained as election judges. The individuals appointed will receive the appropriate election judge and absentee ballot board training prior to taking on their duties. The appointment of staff will help the Elections Division save money as the city will not have to hire election judges to work on a daily basis to seroe on the absentee ballot board. Staff recommends the City Council adopt a resolution appointing staff to serve on the absentee ballot board far the 2012 Election Cycle. 1 Resolution No. 2012 - A RESOLUTION APPOINTING AN ABSENTEE BALLOT BOARD FOR THE 2012 ELECTION CYCLE WHEREAS, pursuant to MN Statute 203B.081, Anoka County Elections has designated the City of Fridley as a location to conduct in person absentee voting for Fridley residents for the Minnesota 2012 Primary and State General Election; and WHEREAS, the County auditor must establish an absentee ballot board for ballots issued under sections 203B.16 to 203B.27 and will be designating the City's assigned staff as members of that board for the purposes of accepting, rejecting and counting in person absentee ballots; and WHEREAS, the duties of the absentee ballot boazd aze defined in the 2012 Minnesota Election Laws and Rules; and WHEREAS, Fridley City Code Section 4.03 requires the City Council to appoint the number of persons and the names of the individuals that will serve on the absentee ballot board which it deems necessary to carry out the duties of the absentee ballot board. NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Fridley hereby designates the following individuals to the City's absentee ballot board: Roberta Collins James Erickson Rebecca Kiernan Pat Magtuak Jean Michaels Dazin Nelson Cindy Ruschy Debra Skogen BE IT HEREBY FURTHER RESOLVED, when the above individuals aze acting in their role as the absentee ballot boazd, they shall use the title of "Deputy County Auditor" for that purpose; and BE IT HEREBY FURTHER RESOLVED that the Anoka County Absentee Ballot Board is hereby appointed and designated to act on behalf of the City of Fridley's Absentee Ballot Boazd. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 25TH DAY OF MAY 2012. ATTEST: Debra A. Skogen, City Clerk � Scott J. Lund, Mayor '• � CRY OF FRIDLEY To: From: Subject: Date: AGENDA ITEM CITY COUNCIL MEETING OF June 25, 2012 William B. Burns, City Manager �� Darin Nelson, Finance Director � Debra Skogen, City Clerk�,% �'O Resolution Appointing Election Judges for the 2012 Two Year Election Cycle 7une 20, 2012 The attaehed resolution appoints election judges for the 2012 two-yeaz election cycle. The election judges are being appointed without precinct assignments at this time to allow the city more flexibility in determining precinct assignments. Election judges receive training which qualifies them to serve a two yeaz term as an elecrion judge. The election judges being appointed have been selected from previous work as election judges, lists wtuch have been provided by the political parties and those individuats who have applied to be an election judge. 3 RESOLUTION NO. 2012 - RESOLUTION APPOINTING ELECTION JUDGES FOR THE 2012 PRIMARY AND GENERAL ELECTIONS NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fridley, Anoka County, Minnesota, at a regular meeting on June 25, 2012: SECTION I. That on the 14th day of August 2012 and the 6th day of November, 2012, there shall be a City and Statewide Primary and General Election: SECTION 2. That the polling place will be open from 7:00 a.m. to 8:00 p.m. for the purpose of voting: SECTION 3: That the following people are hereby appointed to act as Judges for sald election excepY that the City Clerk is hereby authorized to appoint qualified substitutes as set forth in Chapter 4, Section 4.05 of the Ciry Charter. Mary Ackerman Shanon Anderosn Linda Backlund Donna Bahls Jerold Bahls Debbie Baumer Lawrence Besser Virginia Besser Carole Blaska * Linda Borman Bemadette Bovy F Ranae Bowers- Camahan Gerry Brisco Bazbaza Brooks Sandy Byl JoAnn Cedazholm * Jean Coyle Robert Dahlstrom Maxine Dammen * Bee Davidson Julann Delaney Janyce Dols Richazd Dols Cazolyn Doyle Patricia Dufresne Jill Dutcher Arlene Ewer Donald Findell * Lynn Fink Michael Flynn Debbie Folie Thomas Forsythe Patty Galligan Robert Garrett Sherry Gemlo Delores Ginthner James Glaser Lana Joy Glaser * Janice Golden * Jimmy Golden Diane Graham Mazgazet Greshik Lynne Grigor Elaine Gunderson Paul Gunderson Rosalie Halling Mike Halloran Sally Hellman Earl Hendricks Phyllis Hildreth David Hilliard William Holm Cazolyn Holmen James Holmen Jane Hosman * Robert Hosman * Teresa Hub * Shazon James Bazbaza Johnson Bonita Johnson Kuen Johnson Steven D Johnson Kazen Kalambokidis Colleen Joy Kennedy Betty Kirkpatrick Esther Kisch Janet Kothman Marlys Kra� * Ted Kranz � Olga Krochallc Melvin Kuehni Kay Kuppe Paul Laes I�ina Landt Dorothy Larson Judy Lennox Kazen Leske * Jeanette Lindquist * Arlene Linton * David Linton* William Linton Randy Lohmer Rose Lundequam * Dolores McCariy Giles McConville Joyce McConville Judith McHugo Joseph McHugo Angela McShane Connie Metcalf Bruce Miller Teresa Miller Annabel Monson Ben Monson Gwen Nawrocki Roger Nawrocki 7eanine Nelson * Lonna Schmidt Nelson * Richard Nelson * Sandra Nelson Donna Nordin * Daniel O'Brien Virgil Okeson Shirley O'Neill Resolution No. Lois Palmquist Dorothy Pehl Leslie Phelps Mazy Plant Leslie Plununer * Tanya Phunmer Provost Peggy Price Barbaza Proost Allen Rosendahl Norma Rust * William Rust* Noel Ryan Delores Sadowski Beverly Sax * Gerald Shaw Lois Scholzen Marlene Schonebaum Tom Schonebaum Fred Severni Helen Skovran Paul Sleasar Mary Ann Smerud Jon Soule Mazlene Steichen Mary C Strassberg Kathy Svanda * Janet Swanson Brian Toews 7oanne Toews Sarbaza Tollakson Page 2 Marjorie Velishek Jackie Walther * John Walther * Donald Wegler Joe Westenfield Ann Williams Jane Susan Wisniewski Chris Ann Womack Edwazd Wood Judy Zerby David M Zerby Maureen Zgutowicz * SECTION 4. Compensation for said Judges will be paid at the rate of $9 per hour for regular Judges and $10 for the Chairperson * ofthe Election Board. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CTI'Y OF FRIDLEY THIS 25th DAY OF JCJNE 2012. ATTEST: DEBRA A. SKOGEN, CiTY CLERK � SCOTT 7. LUND, MAYOR ' qiY OF FRIDLEY To: From: Date: Re: AGENDA ITEM CITY COUNCIL MEETING OF JUNE 25, 2012 William W. Burns, City Manager ��� Darin R. Nelson, Finance Director � June 20, 2012 Resolution Approving Revised Investment Policy Background Attached is the investment policy for the City of Fridley. This policy specifically outlines the investing philosophy and practices of the City and the Fridley Housing and Redevelopment Authority (HRA), and has been developed to serve as a reference point for the management of city assets. This investment policy was last updated in March of 1994. Since that time there have been slight changes to State Statutes that regulate deposits and investments of public funds that our previous policy did not address. Also, the Governmental Accounting Standards Board (GASB) implemented GASB Statement 40 a few years ago, which required governmental entities to disclose credit risk, interest rate risk, and custodial risk within the City's Comprehensive Annual Financial Report (CAFR). The City's previous policy did not address these three investment risks, which in itself, is not detrimental or even noncompliant, but rather an outstanding issue that a comprehensive investment policy should address. In addition, each of the City's inveshnent brokers are required annually to sign a broker aclrnowledgement certification stating they have reviewed the City's investment policy and agrees to handle the City's account in accocdance. Thus, it is important that the City's investment policy incorporate cunent State Statute language to ensure both compliance and the safety of the City's deposits and investments. This revised policy has incorporated updated State Statutes, the Office of the State Auditor's legal compliance guide, and model policies from both the League of Minnesota Cities and the Government Finance Officers Association (GFOA). Recommendation Staff recommends Council approval of the attached resolution approving the revised investment policy for the City and the HRA. DRN Attachments: Resolution Exhibit I— City of Fridley lnvestment Policy 0 RESOLUTION NO. 2012 - A RESOLUTION APPROVING THE REVISED INVESTMENT POLICY FOR THE CITY AND THE FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY WHEREAS, the City of Fridley recognizes that an Investment Policy promotes acquisition of safe investments by providing structuce to the treasury function, and limiting the risk to public funds, and WHEREAS, the Investment Policy provides for a systematic review of public funds, and WHEREAS, the Investment Policy was last updated in March of 1994 and due to changes in State Statutes and the implementation Govemmental Accounting Standards Boazd Statement 40 revisions to the Invesrinent Policy were needed, and WHEREAS, the Investment Policy has been revised to incorporate current State Statutes, OSA's legal compliance guide, and morlel policies from the League of Minnesota Cities and the Government Finance Officers Association. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Fridley adopts the Revised Investment Policy as identified as Exhibit 1 attached. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 25r�' DAY OF JUNE, 2012. ATTEST: Debra A. Skogen, City Clerk 7 Scott J. Lund, Mayor Exhibit 1 City of Fridley Invest ent Policy Adopted by City Council June 25, 2012 Prepared by the Finance Department Ciry of Fridley Investment Policy 8 Page 1 I. II. III. IV. V. VI. VII. VIII. IX. X. XI. XII. XIII. XIV. XV. XVI. XVII. Eshibit 1 Investment Policy Table of Contents Purpose and Need for Policy ............................................................................................3 Scope................................................................................................................................3 Prudence...........................................................................................................................3 Objective ...........................................................................................................................4 Delegationof Authority ....................................................................................................5 Ethics and Conflicts of Interest ........................................................................................6 Authorized Broker/Dealers ...............................................................................................6 Authorized and Suitable Investments ...............................................................................6 Concentration of Credit Risk ............................................................................................8 Collateralizations..............................................................................................................8 Safekeeping and Custody .................................................................................................9 MaximumMaturities ......................................................................................................10 InternalControl ...............................................................................................................10 Performance Standards ...................................................................................................10 Market Yield/Benchmark ...............................................................................................10 Reporting........................................................................................................................11 Investment Policy Adoption ...........................................................................................11 City of Fridley Investment Policy 9 Page 2 Exhibit 1 I. Purpose and Need for Policy This policy specifically outlines the investing ptulosophy and practices of the City of Fridley and the Fridley Housing and Redevelopment Authority (hereafter collectively refened to as "the City"), and has been developed to serve as a reference point for the management of city assets. It is the policy of the City to invest public funds in a manner which will provide for the following in order of importance: Safety; Liquidity; and Yield (retum on investment) that conforms to all federal, state and local regulations governing the investment of public funds. The purpose of this Policy is to develop an overall program for cash investments, designed and managed with a high degree of professionalism, worthy of the public trust; to establish that elected and appointed officials and employees aze custodians of a portfolio which shall be subject to public review; to establish cash investment objectives, delegation of authority, standazds of prudence, internal controls, authorized investments, selection process for investments, and broker representations. II. Scope This InvesUnent Policy applies to all financial assets of the City. These funds are accounted for within the City's Comprehensive Annual Financial Report and include: • General Fund • Special Revenue Funds . Capital Project Funds • Debt Service Funds • Enterprise Funds • Internal Service Funds • Trust and Agency Funds • Any new fund created by the City, unless specifically exempted by City Council. III. Prudence Investments shall be made with judgment and care, under circumstances existing at the time the investmenY is made, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering probable safeTy of their capital as well as interest yield to be derived. The standard of prudence to be used by investment officials shall be the "prudent investor" standard and shall be applied in the context of managing the overall portfolio. Investment officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal liability for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse situations. Investment Ciry of Fridley Investment Policy ,' O Page 3 Exhibit 1 procedures developed for the Finance Department must be complied with by those with access to and management responsibilities for City investments. IV. Objective At all times, investments oY the City shall be in accordance with Minnesota Statutes Chapter 118A and amendtnents thereto. The primary objectives of the City's investment activities shall be in the following order of priority: A. Safety Safety of principal is the foremost objective of the investment portfolio. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk, interest rate risk, and custodial risk. Credit Risk: Credit Risk is the risk of loss due to failure of the security issuer. Thus, designated depositories shall have insurance through the FDIC (Federal Insurance) or appropriate collateral. Credit Risk will be minimized by: • Limifing investments to the type of secwities listed in Section VIII of this investment policy. • Diversifying the investment portfolio so that the impact of potential losses from any type of security or from any one individual issuer will be minimized. Interest Rate Risk: Interest Rate Risk is the risk that the mazket value of securities in the portfolio will fall due to changes in general interest rates. The City will minimize Interest Rate Risk by shucturing the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity. The City has also established diversification guidelines and maturity limits to control the sensitivity of the portfolio to changes in interest rates. Custodial Rrsk: The City will minimize deposit Custodial Risk, which is the risk of loss due to failure of the depository bank (or credit union), by obtaining collateral or bond for all uninsured amounts on deposit, and by obtaining necessary documentation to show compliance with state law and a perfected security interest under federal law. The City will minimize investment Custodial Risk by holding investments in securities with a major bank's corporate trust department. Investment Custodial Risk is the risk that in the event of failure of the counterparty to a transaction, the City will not be able to recover the value of its investment securities that aze in possession of an outside party. Investments in investment pools and money mazkets aze not evidenced by securities that exist in physical or book entry form, and therefore are not subject to custodial Credit Risk disclosures. City of Fridley Investment Policy � � Page 4 Exhibit 1 B. Liquidity The City's investmentportfolio will remain sufficiently liquid to enable the City to meet all operating requirements that might reasonably be anticipated. The portfolio will be structured so that securities mature concurrent with cash needs to meet anticipated demands (static liquidity). Furthermore, since all possible cash demands cannot be anticipated, the portfolio should consist largely of securities with active secondazy or resale mazkets (dynamic liquidity). Alternatively, a portion of the portfolio may be placed in money mazket mutual funds or local government investment pools which offer same day liquidity for short-term funds. C. Yield The City's investment portfolio shall be designed with the objective of attaining a market rate return. The core of investments is limited to low-risk securities in anticipation of earning a fair return celative to the risk being assumed. Securities shall generally be held until maturity with the following exceptions: • A security with declining credit may be sold early to minimize loss of principal. • A security swap would improve the quality, yield, or target duration in the portfolio. • Liquidity needs of the portfolio require that the secwity be sold. D. Trading Portfolio pwchases will focus on holding investments until maturity to maintain securities at amortized cost. Excessive investment portfolio turnover commonly referred to as "trading" or "overtrading" to obtain short-term gains is not consistent with the City's stated investment objectives and will be prolubited. V. Delegation of Authority The investment program shall be operated in conformance with federal, state, and other legal requirements. Authority to manage the City's investment program is derived from the following: Minnesota Statutes Chapter 118A, Deposit and Investrnent of Local Public Funds Fridley City Charter Section 7.13, Receipts to go to City Treasurer Management responsibility for the investment program is hereby delegated to the Finance Director, who shall establish written procedures for the operations of the Investment Program consistent with this Investment Policy. The Finance Director, with assistance from finance department staff, monitors performance of the investment portfolio; and ensures that proper internal controls aze developed to safeguard investments assets. Procedures should include reference to: safekeeping, delivery versus payment (DVP), investment accounting, wire transfer agreements, collateral/depository agreements and City of Fridley Investment Policy ,' .1 Page 5 Exhibit 1 banking service contracts. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this Policy and the procedures established by the Finance Director. The Finance Director shall be responsible for all investment transactions and shall establish a system of controls to regulate the activities of subordinate officials. VI. Ethics and Conflicts af Interest Officers and employees involved in the investment process shall refrain from conducting personal business activity that could conflict with proper execurion of the investment program, or which could impair their ability to make impartial investment decisions. Investment officials shall annually disclose to the City Clerk any material financial interests as required by state statute on an annual Statement of Economic Interest form. Employees and officers shall subordinate their personal investment transactions to those of the City, particularly with regazd to the time of purchases and sales, and shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the City. VII. Authorized BrolcerJDealers The City will conduct investment transactions only with authorized broker/dealers that have met the following criteria: • They act as primazy or regional dealers that qualify under Securities & Exchange Commission Rule 15C3-1(Uniform Net Capital Ru]e). Submit annually to the Finance Director a Minnesota State Auditor Broker Certification Form. All broker/dealer relationships, providing they meet the above requirements, will be maintained at the discretion of the Finance Director. The purchase of all investments must be from institutional brokers. The City may enter into contracts with investment advisory firms at the discretion of the Finance Director when their services aze deemed beneficiary to the City. Any such firm must be registered under the Investment Advisor's Act of 1940. The advisor may have authority to transact investments on behalf of the City and must comply with State Statue and this Investment Policy. VIII. Authorized and Suitable Investments Ciry of Fridley Investment Policy ,' 3 Page 6 Exhibit 1 Based on the investment objectives as defined in section IV of this policy, the City will limit its investments to securities authoriaed under Minnesota Statute 118A and future revisions. Cunent statute allows the City to invest in the following types of securities: • United States Securities including bonds, notes, bills, mortgages or other securities which are direct obligations or are guazanteed or insured issues of the United States, its agencies, its instrumentalities, or organizations created by an act of Congress. Mortgage-backed securities that are defined as high risk or in certificates of deposit secured by letters of credit issued by federal home loan banks are not permissible investments. • General obligation bonds of state or local governments rated A or better by a national bond rating services. • Revenue obligations of state or local governments rated AA or better by a national bond rating service. • General obligation bonds of the Minnesota Housing Finance Agency rated A or better by a national bond rating service. • General obligations of the Housing Finance Agency of any state rated AA or better and if it includes the mora] obligarion of the state. • Certificates of Deposits (Time Deposits) that are fully insured by the Federal Deposit Insurance Corporation. • Bankers acceptances of United States banks purchased on the secondary mazket rated with the highest short-term credit rating of any two Nationally Recognized Statistical Rating Organizations (NSROs), at the time of parchase, Maximum maturity will be 270 days. If the banker's acceptance is rated by more than two NRSROs, it must have the highest rating from all the organizations. Commercial paper issued by United 5tates corporations or their Canadian subsidiazies that is rated A-1, P-1, or F-1 ar better by at least two nationally recognized rating agencies and matures in 270 days or less. Money Mazket Mutual Funds provided such investment company is registered under the Federal Investment Company Act of 1940, and which holds itself out as a money market fund meeting the conditions of rule 2a-7 of the Securities and Exchange Commission and is rated in one of the two highest rating categories for money market funds by at least one nationally recognized statistical rating organization, or whose shazes are registered under the Federal Securities Act of 1933, as long as the investment company's fund receives the highest credit rating and is rated in one of the two highest risk rating categories by at least one narionally recognized statistical rating organization and is invested in financial instruments with a final maturity no longer than 13 months. City of Fridley Investment Policy � 4 Page 7 Exhibit 1 In addition, the shaze value of the money market funds must be equal to $1.00. The Minnesota Municipal Money Market Fund (4M) that was established by the League of Minnesota Cities in 1987 to address the investment needs of Minnesota cities. IX. Concentration of Credit Risk It is the intent of the City to diversify its investments and thereby reduce the xisk of loss resulting from the over-concentration of assets in a specific maturity, issuer, institution, or class of securities. No more than 50% of the entity's total investment portfolio will be invested in a single class of securities and no more than I S% of the overall portfolio may be invested in the securities of a single issuer. The following investments are exempt from diversification restrictions: 5ecurities of the U.S. Govemment, Money Market Funds, Local Government Investment Pools and Deposits. Due to the fluctuations in the value of the portfolio, maximum percentages for a particular issuer or investment type may be exceeded at a point in time subsequent to the purchase or maturity of a particular security. Securities need not be liquidated to realign the portfolio; however, consideration should be given to this matter when future purchases aze made. Given the smaller portfolio of the Housing and Redevelopment Authority, the above restrictions will be waived. Prudent judgment in regards to concentration of credit risk should still be exercised when possible. X. Collateralizations In accordance with MinnesoYa Statute 118a.03, financial institutions will be required to provide collateral on the following: • Certificates of Deposits (Time Deposits) • Demand Deposits In order to anticipate mazket changes and provide a level of security for all funds, the collateralization level will be 110% of market value of grincipal and accrued interest. The underlying securities will be subject to periodic (monthly) market valuations to ensure there is no market exposure. The City chooses to limit collateral to the following U.S. government securities: • Treaswy Bills • Treasury Notes • Treasury Bonds City of Fridley Investment Policy � 5 Page 8 Exhibit 1 • Federal National Mortgage Associations (FNMA) • Federal Home Loan Bank (FHLB) • Federal Farm Credit Bank (FFCB) • Government National Mortgage Association (GNMA) • Federal Home Loan Mortgage Corporation (FHLMC) For cash deposits on hand collateral will always be held by an independent third party with whom the entity has a current custodial agreement. Clearly marked evidence of ownership (safekeeping receipt) must be supplied by the entity and retained. Collateralization shall be in the form of specific securities held for the City. The only exceptions are fedexal Depository Insurance Corpoxation (FDIC), Securities Investox Protection CorporaUon (SIPC) and pre-approved inswance coverage. The right of collateral substitution is granted, subject to approval from the Finance Director. XI. Safekeeping and Custody Securities purchased shall be held in a segregated account for the City's benefit at a thixd party trustee as safekeeping agent. The investment dealer or bank from which the security is purchased shall issue a confirmation ticket to the City listing the specific instrument, issuer, coupon, maturity, CUSIP number, purchase or sale price, transaction date, and other pertinent information. The financial service provider who executes the transaction on the CiTy's behalf shall deliver all securities on a delivery versus payment method (DVP) to the designated third party. DVP is a way of controlling the risk to which securities market participants are exposed. Delivery of securities (i.e. the change in their ownership) is done simultaneously with payment. This means that neither the buyer nor the seller is exposed to the risk that the other will default. Investments, contracts, and agreements may be held in safekeeping with: • Any Federal Reserve Bank. • Any bank authorized under the laws of the United States or any state to exercise corporate trust powers including, but not limited to, the bank from which the investment is purchased. The City's ownership of all securities should be evidenced by written acknowledgements identifying the securities by: • The names of the issuers. • The maturity dates. • The interest rates. • Any CUSIP, serial numbers, or other distinguishing mazks. The City may not invest in securities that aze both uninsured and not registered in the name of the City and are held by either the counterparty or the counterparty's trust department or agent, but not in the name of the City. City of Fridley Investment Policy ,16 Page 9 Exhibit 1 XII. Maximum Maturities To the extent possible, the City will attempt to match its inveshnent maturities with anticipated cash flow liquidity demands (static liquidity). A majority of the City's funds will be invested in securities maturing in 5 years or less, with no more than 20% of the City's funds being invested in securities maturing 12 yeazs or more. Consideration should also be given to the average duration of securities. Actual maturity dates may be considerably sooner than the issued maturity dates due to options such as calls and step increases. These options often provide for an increased rate of return, compared to non- option secwities, witb actual investment durations typically being shorter than stated maturity dates. � Portfolio maturities shall be staggered to avoid undue concentration of assets in a specific sector. Maturities selected shall provide for stability of income and reasonable liquidity. Because of the inherent difficulties in accurately forecasting cash flow requirements, a portion of the portfolio should be continuously invested in readily available funds such as local government investment pools and/or money mazket funds to ensure that appropriate liquidity is maintained to meet ongoing obligations. XIIL Internal Control The Finance Director is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, thefr or misuse. The internal control structure shall be designed to provide reasanable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of the costs and benefits requires estimates and judgments by management. The City will engage an external auditor for an annual independent review to assure compliance with policies and procedures. XIV. Performance Standards The Investment portfolio will be designed to obtain a mazket average rate of return during budgetary and economic cycles, taking into account the City's investment risk constraints and cash flow needs. XV. MarketYield/Benchmark The City's investment strategy is conservative. Under this conservative philosophy, the City will purchase investments that fit in accordance with this policy. Given this strategy, the basis used by the Finance Director to determine whether mazket yields are being achieved shall be the 6-month Treasury Bill. City of Fridley Investment Policy ," Page 10 Exhibit 1 XVI. Reporting The Finance Director is charged with the responsibility of including a report on investment activity and returns which are included in the City's Comprehensive Annual Financial Report. The report will include security diversiiication information, maturity breakdowns, and investment earnings. XVII. Investment Policy Adoption The City's Investment Policy shall be adopted by the City Council. The Policy shall be reviewed periodically by the Finance Director and any modifications made must be approved by the City Council. 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M O�f Wi � 1 Ol O N O N m N O N O N O N O N N N O O r�l r1 r'1 O ri N O N O Ol ry O W� � F � �n o .i r .i �o 'i l� .i o ri o .+ �o .i v� .i c �n l� h h h h .i W .i o�o .i �o q• � X W i Z� mo o r om ot� o0 00 om om o�int� nnrr om oom oio W�' W� U E � P� O C N O (V O N O N O (V O (V O Np� O O O O O O O ry O N[� O N O W' iC O i W Q i O i i i � i � i �� � i � i � i � 1q� � i i i i i i � i � i� � i a a i x Ll � u i .y .a .-i .i .+ .i .i .i .i r .� .i .� .y .i Y .a .� o 0 0 .' o ,-i .i .y .v .y '+ .a d CJ 'i� � U i U i O O N O N O N O N�'I N O ry O N O N O O h h P O h N O ry O O N O W O E i i F i .� �o � .y � ri � .i � H � .i � .� � ,y � .i .i �v �v rv N rv � H � �e .+ � .1 aa� � � e � -� e � � � � � � a a u i i i o 0 0 0 0 0 0 0 0 0 0 CfiY OF fRIDLEY AGENDA ITEM CITY COUNCIL MEETING OF JUNE 25, 2012 LICENSES TYPE OF LICENSE: APPLICANT: APPROVED BY: Auction License Totino Cnace High School Public Safety Fundraiser November 10, 2012 Cit Clerk Motor Vehicle Auto Body Repair R and M Auto Body Public Safety Ronald Pilegaard Community Development Fire De artment Recycling and Solid Waste Biff's Boxes, LLC Public Safety Provider Derek Paulin Communit Develo ment Peddler/Solicitor License Berkshire Home Solutions Public Safety Kevin Keeney, Michael Harley and Neal Flahert 34 I• � CfiY OF FRIDLEY A & M Heating & A Air Mechanical Inc BFS Heating & Coo Cities 1 Plumbine & AGENDA ITEM CITY COUNCIL MEETING OF JUNE 25, 2012 LICENSES Inc Demars Signs i Berd Mechanical Landmark Architectural J P Schmitz Construction Leaders Excavating Inc Mcgough Construction Practical Svstems Riccar Heating Riekes Material Handling Royalton Heating & Cool' RTS Mechanical LLC RTS Mechanical LLC Sedgwick Heating & Air I Sedgwick Heating & Air i Signcrafters Outdoor Valley Rich Co Inc Western Remodelers Matthew VanBriesen I Ron Bettv Haraoat Ron n Richard Peterson n Robert Skeie Erector Dennis Demars Si n Erector Steve S Excavatin John Schmitz Excavatin Ted Leaders Commercial or Tom McGough Jr Commercial or Richard Fox S ecial Heatin Tom Stewart Gas Ron S ande Heatin Ron S ande Heatin Jo Post Gas Jo Post Si n Erector Gar Johnson Excavatin Ted Olson Commercia] or David Bernar� 35 Ron Ron Ron Ron :• :• :• C• :• :• � :• i�:��� Ron Julkowski, CBO Ron Julkowski, CBO Ron Julkowski, CBO Ron Julkowski, CBO Ron Julkowski, CBO Ron Julkowski, CBO Ron Julkowski, CBO Ron Julkowski. CBO Ron Julkowski, CBO Ron Julkowski, CBO Ron Julkowski, CBO Ron Julkowski, CBO ': AGENDA ITEM CITY COUNCIL MEETING OF JUNE 25, 2012 °"-oF ESTIMATES FRIDLEY Ron Kassa Construction, Inc. 6005 East 250ih Street Elko, MN 55020 2012 Miscellaneous Concrete Repair Project No. 417 EstimateNo. 2 ................................................................................. $ 7,298.28 Allied Blacktop Company 10503 — 89�h Avenue North Maple Grove, MN 55369 2012 Cooperative Street Maintenance Project No. ST2012-10 Estimate No. 1 ................................................................................. $ 75,241.01 Lametti & Sons, Inc. P.O. Box 477 Hugo, MN 55038-0477 2012 Sanitary Sewer Lining Project No. 416 Estimate No. 1 ................................................................................. $29,220.10 G.M. Contracting, Inc. 19810 — 515�h Avenue Lake Crystal, MN 56055 2012 Jackson Street Project No. 413 Watermain Project No. 404 Estimate No. 1 ................................................................................. $290,964.97 36 AGENDAITEM � CITY COUNCIL MEETING OF JUNE 25, 2012 CITY OF FRIDLEY TO: William W. Burns, City Managerd�p PW12-048 FROM: James P. Kosluchar, Public Works Director DATE: June 20, 2012 SUBJECT: Receive Bids and Award Contract for Municipal Center Roof Replacement Project No. 418 The City of Fridley has solicited and received bids for a project providing replacement of the Municipal Center Roof. This project will consist of the removal and replacement of the existing ballasted and fully-adhered roofing system over the Fridley Municipal Center and Main Fire Station, as well as replacement of prefinished metal coping system, prefinished metal gravel stops, prefinished metal fascia, and prefinished metal scuppers at the roof perimeter. The project includes installation of a new roofing system with a 20-year warranty. Plans and specifications, developed in coordination with Engineering and Building Inspections staff, have been received by the Engineering Division office. We held two mandatory pre-bid meetings on May 22 and June 12 to accommodate inspection of the existing roof by all bidders. Bids were opened on June 19 at 2:00 PM. The project was bid with several alternates, summarized in the attached bid tabulation. We solicited bids on these multiple alternates to allow us to select the best pricing with desired components, while maintaining our sensitivity to the budget for this project. Alternates 1, 2, and 5 include additional work related to ancillary equipment on the roof, including gas piping cleaning and painting, replacement of chimney flue caps, and insulation of refrigerant piping lines. Alternate 3 pricing is for substitution of a white EPDM roofing system in lieu of the base bid black ethylene propylene diene monomer rubber (EPDM) roofing system. Alternate 4 is for substitution of a white thermoplastic polyolefn (TPO) roofing system. Alternate 6 includes changes to allow reuse of the existing cap flashings found to be in good condition. Alternates 7 through 15 provide for deductions of certain areas of the roof. Due to the high estimates, we were concerned that these may be required to maintain the project budget. Since the bids received were quite low, none of these alternates will require consideration. Central Roofing Company of Minneapolis, MN, provided the low base bid of $262,500.00. Based on the alternate bid pricing received, we recommend award of Base Bid with Alternates 1, 2, 4, 5, and 6. Central Roofing Company of Minneapolis, MN, provided the low bid for the combination of base bid and alternates that we recommend. Additional work related to Alternates 1, 2, and 5 totals a reasonable $5,150.00. We also recommend Alternate 6, which is a deduction of $8,640.00 for reuse of the existing metal cap flashings, as they are in good condition. Finally, we recommend Alternate 4, which substitutes the white TPO roofing membrane in place of the base bid black 37 EPDM membrane. TPO is a newer product that has been used in commercial applications in North America since the early 1990s. Typical performance has been equivalent to EPDM, and TPO has the advantage of heat welded seams, versus adhesive seams of EPDM. Selection of TPO will provide a credit of $46,700.00. All roofing systems included in the base bid and alternate bids carry a 20-year warranty. Central Roofing Company has worked with the City of Fridley in maintaining the existing EPDM roof, and has shown good performance and responsiveness. They have also completed smaller roofing projects for the City of Fridley in the past. References for similar projects are being checked currently and should be available by the meeting, and presuming these are satisfactory, we would recommend this contractor to complete the project. The total project with recommended alternates applied is $212,310.00. Including design and inspection costs, installation of the entire roof can be completed well within budget for this project. Staff requests that the City Council move fo receive bids and award a contracf for the Municipal Cenier Roof Replacement Project No. 418 to Ceniral Roofing Company of Minneapolis, MN, in the amount of $212,310.00, to include the 8ase Bid and A►ternatives 1, 2, 4, 5, and 6. JPK:jpk attachments � � � June 21, 2012 $taMee Conauitlng 5srviees Ina 2335 Highway 98 West St. Paui, MN 65113 7eL (851) 63&A800 Fax: (651) 638-1311 Honorabie Mayor and Gty Cauncii City of FridleY 6431 University Avenue NE Fridley, MN 55432 Re: Municipai Center Roof Repla�nent Project aty Improv�nent Project No. 418 Projed No. 193800558 Bid Rasults D�r H�orable Mayor and City Council: Bids were reoeived and opened for the Projed stated above on Tuesday, 7une 19, 2012, at Z P.M. Transmitted herewith is a copy of the Bid Tabulation for your Infnrmation and flfe. Copies will also be disMbuted to e�h Bidder once the Project has been awarded. Tt�ere were a fiotal of five Bids received from Centrai Roofing Co., Berwald Roofing Co., PalmerWest Cor�struction Co. Irrc., Nieman Rooflrx� Compar�y, Irx., and Lake Area Roof'ing & Construction, Inc. The folbwing summaraes tt�e Base Bfd results of the acceptable B(ds received: Total Base Bid: Central Roofing Co. Benwald Roofing Co. Palrr�erWest Conslruction Co. Inc. Nieman Roofing Company, Inc. Lake Area Raofing & Construction,Inc. $262,500.00 $278,925.00 $314,900.00 $355,000.00 $370,102.00 The following Altemates were also included on tt� bid form. Based on discussions wiUi the City Ergincer, we are recommending acceptarme of the followirx3 Altemabes. Attemate hb. 1{CJean and re-palnt all gas piping on the roof�: $3,150.00 AI[emate No. 2(Replace ali existing chimney flue caps with Ul, Bsted caps): $700.00 Alternate No. 4{Provide TPO Roofing Membrane systc�rn in lfeu of Base Bid EPDM): -$46,700.00 Alternate No. 5(Install new UV-resistant insuladon on all refrigerant piping lines): $1,300.00 Aiternate No. 6(Re-use existing cap flashing in lieu of repladng with new mateNal): -$8,640.� Project Cost indud(� dte Aiternates listed above: #212,310.00 The bw Bidder on the Project was Central Roofing, Inc. Their Bid has been reviewed and found to be In wder. We have also received three references from Centra� R�fing Co. NI three references have been contacted and we have received positive feedback from all three references. If dte Qty Courrcil wishes to award the Project to the low Bkider, then Central Rooflty Co, should be awarded the Project fur the amount of;212,310.00. Shouid you have any questions, please feei free to contad me at {651) 604-4849. Respectfully, STAN7EC CONSUITING SERVICESINC. ���I• ��e�-- Bnice P. Paulson, AIA Project ArchiYect Attachment: Bfd TabuWtion c. file 39 � � � � � 3 s i 0 � � 7 � F � m � � � � 0 a` m � £ om s� N $ N Q Ng w� �m m �U am �a � LL U p C f ieU r' ° ° d c d a m 2g e z a � .O U a m Qa` a` n� � X E � V �d •i .ti e'� 1�1 q ul N N m T Z M fi N�O M ry IV f� N N � � a � L � g � 2 � n` E �' C a� O g� [V � N Qr 7 ma � �� m � � U a m � V g LL O m F� y V w v .. .. ° �oz° ° € _ aZ�i V m m � �a a` � a`� �� U .� N�2 � $��m9 �g� _�, � � i' ms�¢ n9 =s � �;3 s= S; g �8 ��� s � g 2 � � _ ����� ����s ����� R�o�� ����� �sBM� �i�6� 'Q'oz�� aWFEz f�G�� ����� $�o� < ��(� ��€_� �<���� ��s N w � m ? �gcym ����;,„€ $ a�o�������1 �3�����'��'� � � F � N� � �€��� �� ������gEj1 ��aia"���3� `o � �n � V �nn � ; �z��� � ��������pM 6U� nu9 r6-� E � � 3 m� 3 � ����� � U>^ � Z N � � = � ��] m�& Z�� 3 F f2 � � P � Q N � Vwi z� ¢ �`p �4� x� ..i ..i ..I ..i ..i _,I � � - � �J � "J I "J 'J' i `J' i "J F in �io 3d � � �� �_ 0 2� �£.. Be ��z �3 ��� � �=s _°�� 6�� �=o � ��� � H �� w�a �g� w ��� ,� �o� �ao aSE i $'iYi �o� w ��� Wwr � � N ��8 � 1V ���$ � �°�� � �g� � ° ���� ����� ����� Z�Zo sWF o ��wE� 3£��� �°�Wg � �� ��-�.��� ����� Q £ W � � K���� ��5�� ���8f � 41 °w= �� b � �w �£ _ �� rcx �ga ��g m �+ 0 �?� � � g�� �£o ��� ag� � 1Y ��u�� a£� �g�a ��� �_� o� W e�� ��� o� �o^ 0 $�� g�f ��� � 3�� M N z P� � g U CfTY OF FRIDLEY AGENDA ITEM CITY COUNCIL MEETING OF JUNE 25, 2012 To: William W. Burns, City Manager�� From: Darin R. Nelson, Finance Director� Deb Skogen, City Clerk Jim Erickson; IT Manager Date: June 21, 2012 Re: Purchase & Conversion of New Imaging System Background The City purchased Docuware in 1999 along with a server and jukebox system to archive documents on Optical Disks. Staff has used the softwaze to azchive and save all of the City's Agendas, Minutes, Resolutions, and Ordinances from the City Council and other Commissions, as well as deeds and easements and half of our property files. As the jukebox is almost full utilizing 18 of the 20 disks the jukebox is capable of holding, it is time to begin looking at new storage technology for pocuware. The cost to upgrade the jukebox and convert to a new storage mechanism would be approximately $30,000. Besides the new hazdware cost, there have been concerns over the past several yeazs that the Docuware Imaging Softwaze program is inefficient. Staff has expressed concerns which include: the lack of system intuitiveness to search and find documents; slow retrieval speeds; and some scanned documents may not be accurate enough to allow staff to make necessary readings on measurements or map details. Staff wants to be assured the imaging system we use will enable staff to automate many of their daily processes and not be roadblock to innovation. While Docuware has served us well for the past ten yeazs, due to these concems, staff completed a thorough reseazch project reviewing the products, meeting with Lase�che software vendors and contacting multiple cities regazding their experiences. Staff analyzed the information and determined Laserfiche would be a good fit for the City. During our research it was discovered improvements in software and hazdwaze technologies could provide a more streamlined documentation retention system to increase efficiency within and between City Departments. Unlike Docuwaze, Laserfiche stores documents in a file system similaz to that of Microsoft Windows, thereby allowing staff to drag and drop documents into the appropriate folders and 42 negating the need for expensive, dedicated starage technology. The Laserfiche Workflow module will allow staff to automate many of their daily work processes, while the Laserfiche Audit Trail module will provide a history of who has checked documents in and out and follow any changes that have been made to the document. Lastly, Laserfiche provides for easier seazch, navigation, scanning and administration features. Since the City first purchased Docuware in 1999, retention softwaze technology has advanced and is designed to be more compatible with city software and equipment. In addition, Laserfiche is used by 70% of the governmental units using a document imaging system. While a new digital document management system has many benefits, it will be a complex undertaking and will require an investment of staff and capital to make the project successful. In order to implement the new system we will need to purchase the softwaze and hazdware, work with the vendor to convert our existing records to Laserfiche and work with the vendor to provide training. We will continue to have an annual software maintenance agreement with Laserfiche as we do with Docuware. Our current annual software maintenance is approximately $8,000 with another $6,000 spent on scanner and jukebox maintenance. We are recommending Crabtree Companies, Inc. out of Eagan as our preferred vendor for Laserfiche. Crabtree stood out as the preferred vendor in a nuxnber of areas. First, staff within the police department already use Laserfiche supported by Crabtree Companies tluough the Anoka County Sheriff's Department. Our IT and Police Departrnent staffs have had positive customer service experiences during update installations, troubleshooting, or just the general answering of questions. Second, Crabtree Companies provides monthly training that is available to all staff inembers. This training is a free service and is done at Crabtree's facility in Eagan. The training topics vary from month-to-month to meet the needs of its users. One month can be an introductory session for new employees and the next month could be a very technical session for advanced users. Third, Crabtree technical expertise stood above the other two vendors. The Laserfiche product has evolved dramatically over the last couple years, Workflows aze the wave of the future for innovating and increasing efficiencies. If you can dream it, a workflow can likely make it happen. A workflow doesdt have to be in Lase�che, but this package offers a platform that will be utilized by all departments. So it makes sense to use that functionality within Laserfiche. Laserfiche workflows have essentially eliminated the need for two expensive add-on modules. Crabtree was the only vendor that did not try to sell the City on these expensive and essentially azchaic modules. Crabtree advised against purchasing two modules since workflows, which aze included in the base package, will provide this same functionality. The savings on this option ranged from $10,000 to $16,000 plus yearly maintenance of $2,000 to $3,200. The total cost for this project is $58,534.20, which includes the initial purchase, conversion, training, and the first yeaz's maintenance wsts. I am recommending that we fund this project from surplus funds available within the Employee Benefits Internal Service Fund. As of the end of 2011, this fund had $229,000 of unrestricted fund balance. This fund accounts for the accrued 43 2 leave balances for all city employees. The City has always funded 100% of this liability, and since that has been the case since the inception of this fund, interest earnings over time have accumulated to approximately $229,000. As proposed in the 2013 Draft Budget, we are anticipating using $125,000 of this excess to supplant the MIS Internal Service Fund in 2013. This is one-time funding to help restore the fund balance that has diminished over the last few years due to freezing the depreciation charge within the General Fmmd. With the reduction of $125,000 and the approximate $59,000 needed for Laserfiche, this still leave the fund with approximately $45,000 in unrestricted fund balance. The $59,000 will be transferred to the MIS Internal Service Fund were all technology purchases of this nature are made. This project falls under the $100,000 threshold for contracts to require sealed bids. However, this project does fall within the $25,000 to $100,000 threshold that allows direct negotiation, with at least two quotations whenever possible. As mentioned eazlier, staff received quotes and met individually with three Laserfiche vendors. All the quotes were relatively similaz since they aze selling the same product, but since Crabtree's other attributes stood above the others we are recommending them as the City's vendor. Not to mention, they aze proposing altemative solutions that do not require the purchase of two additional modules, thus saving the City thousands of dollars. Also, we would like to make this purchase by the end of June. Laserfiche is currently running a promotion at this time that is saving the City $5,200. In order to take advantage of this special pricing, we will need to pay for'h of the invoice cost by June 29'�'. We aze truly excited about the opportunities Laserfiche will bring to our City. There aze a lot innovations that will not only improve the storing and retrieving of data, but the endless possibilities that workflows offer create opportunities far change and increased efficiencies. Recommendation Staff recommends the City Council approve the purchase of Laserfiche through Crabtree Companies, Inc. in the amount of $58,534.20 and the transfer of $59,000 from the Employee Benefit Internal Service Fund to the MIS Intemal Service Fund. 44 3 f: AGENDA ITEM CITY COUNCIL MEETING OF JUNE 25, 2012 qiY OF FRIDLEY 1NFORMAL STATUS REPORTS 45