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.
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WOMEN OF 1�ODAY FOLJNDER'S DAY
J[JLY i, zois
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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"
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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.
Adopted by Ciry Council — June 25, 2012
City of Fridley Investment Policy ,' $ Page 11
pTY OF
FRIDLEY
AGENDA ITEM
COUNCIL MEETING OF JUNE 25, 2012
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155556 - 155741
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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.
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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
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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