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CCA 09/25/2017 1 "�` CITY COUNCIL MEETING OF SEPTEMBER 25, 2017 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) CONFERENCE MEETING (5:30 p.m.) 1. Utility Rate Study 2. Mississippi River Erosion CITY COUNCIL MEETING PLEDGE OF ALLEGIANCE. PROCLAMATIONS: Domestic Violence Awareness Month: October, 2017 Minnesota Manufacturing Week: October 1-7, 2017 Fire Prevention Week: October 8-14, 2017 APPROVAL OF PROPOSED CONSENT AGENDA: APPROVAL OF MINUTES: City Council Meeting of September 11, 2017 1 - 14 I FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 25, 2017 PAGE 2 APPROVAL OF PROPOSED CONSENT AGENDA: NEW BUSINESS (CONTINUED): 1. Variance Request, VAR #17-02, by Gaughan Development, LLC, to Reduce the Side Yard Setback on a Corner Lot on the East Side from 35 Feet to 30 Feet, to Allow for the Construction of Two New Retail Buildings on the Vacant Parcel of Land Located at the Northwest Corner of the Intersection of 83rd Avenue and University Avenue; and Resolution Approving Variance, VAR #17-02, to Reduce the Side Yard Setback on a Corner Lot from 35 Feet to 30 Feet to Allow the Development of the Vacant Parcel of Land on the Northwest Corner of University Avenue NE and 831d Avenue NE, Petitioned by Gaughan Development, LLC (Ward 3) 15 - 27 2. Approve Change Order No. 1 for the 2017 Street Project No. ST2017-01 28 - 30 3. Claims (ACH PCard 1709; 178076 — 178234) 31 - 59 OPEN FORUM, VISITORS: Consideration of items not on Agenda — 15 minutes ADOPTION OF AGENDA: NEW BUSINESS: 4. First Reading of an Ordinance to Amend the Fridley City Code Chapter 205.30 0-5 Telecommunications Towers and Facilities District, to Allow a Telecommunications Tower to a 150 Foot Height Provided Conditions can be Met to Blend into the Surrounding Environment 60 - 62 FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 25, 2017 PAGE 3 NEW BUSINESS (CONTINUED): 5. Resolution Approving and Authorizing Signing an Agreement with Police Officers of the City of Fridley Police Department for the Years 2017, 2018 and 2019 63 - 91 6. Resolution Certifying Proposed Tax Levy Requirements for 2018 to the County of Anoka 92 - 94 7. Resolution Adopting the 2018 Proposed General Fund Budget 95 - 96 8. Motion to Direct City Staff to Negotiate a Joint Powers Agreement and Services Agreement with the City of Coon Rapids for Prosecutorial Services Effective January 1, 2018 97 - 98 9. Informal Status Reports 99 ADJOURN. ( Fridley FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 25, 2017 7:00 p.m. — City Council Chambers Attendance Sheet Please print name, address and item number you are interested in. Print Name (Clearly) Address Item No. 2. 14-CiN 44114 flirt prz,s 1 fs. Fridley • g5-11 / I DOMESTIC VIOLENCE AWARENESS MONTH OCTOBER, 2017 cis WHEREAS, the community problem of domestic violence has become a critical public health and welfare concern in Anoka County; and WHEREAS, domestic violence is a crime, the commission of which will not be tolerated in Anoka County, and perpetrators of said crime are subject to prosecution and conviction in accordance with the law; and WHEREAS, thousands of women and children have and will continue to access assistance from Alexandra House, Inc., a domestic violence service provider; and WHEREAS, domestic violence will be eliminated through community partnerships of concerned individuals and organizations working together to prevent abuse while at the same time promoting social and legal change; and WHEREAS, October is National Domestic Violence Awareness Month; and WHEREAS, during National Domestic Violence Awareness Month, Anoka County organizations will inform area residents about domestic violence, its prevalence, consequences, and what we, as a concerned community, can do to eliminate its existence. NOW THEREFORE,BE IT RESOLVED, that I, Scott J. Lund, Mayor for the City of Fridley, do hereby proclaim the month of October, 2017, to be: DOMESTIC VIOLENCEAWAAEIVESSMONTH in the City of Fridley, Minnesota. IN WITNESS WHEREOF, I have set my hand and caused the seal of the City of Fridley to be affixed this 256 day of September, 2017. Scott J. Lund, Mayor r 11111111/ Fridley • gff! / / I mrnnesota `. 1 OCTOBER 1 -7 . 2017 r • Whereas: Manufacturing is a dynamic and robust industry, crucial to the health and strength of Minnesota's diverse economy; and Whereas: The manufacturing industry contributed $48.2 billion to Minnesota's economy in 2016, and at 16 percent, is the largest sector contributing to the state's private gross domestic product; and Whereas: In 2016, workers took home $20.3 billion in wages from Minnesota manufacturing jobs, the second-highest amount among the state's business sectors; and Whereas: Manufactured exports brought $18 billion into the Minnesota economy in 2016; and Whereas: Manufacturing provides 318,000 highly skilled, well-paying jobs, which significantly contribute to Minnesota's high standard of living and economic vitality; and Whereas: Manufacturing in Minnesota pays an average annual wage of $63,794, which is 17 percent higher than the state's overall average wage. Now, therefore, I, Scott Lund, Mayor of the City of Fridley, do hereby proclaim that the week of October 1 to October 7, 2017, shall be observed as: MINNESOTA MANUFACTURING WEEK in the City of Fridley, Minnesota. IN WITNESS WHEREOF, I have set my hand and caused the seal of the City of Fridley to be affixed this 25th day of September, 2017. Scott J. Lund, Mayor Fridley g5.-"1/ / / ,/ FIRE PREVENTION WEEK OCTOBER 8-14, 2017 (;) EIRE PREVENTION WEEK� 6( Attk ♦ OCT0BFi 8-11, 2037 PLAN WAYS OUT' WHEREAS, the City of Fridley, Minnesota is committed to ensuring the safety and security of all those living, working and visiting Fridley;and WHEREAS, U.S.fire departments responded to 365,500 home fires in 2015, according to the National Fire Protection Association (NFPA); U.S. home fires resulted in 2,560 civilian deaths in 2015, representing the majority (78 percent) of all U.S.fire deaths; and WHEREAS, newer homes are built with lightweight materials that burn faster than older home constructions; Many of today's products and furnishings produce toxic gases and smoke when burned, making it impossible to see and breathe within moments; These conditions contribute to a much smaller window of time for people to escape a home fire safely, with people having as little as one to two minutes to escape from the time the smoke alarm sounds; and WHEREAS, a home fire escape plan provides the skill set and know-how to quickly and safely escape a home fire situation; A home fire escape plan includes two exits from every room in the home; a path to the outside from each exit; smoke alarms in all required locations; and a meeting place outside where everyone in the home will meet upon exiting; Practicing a home fire escape plan twice a year ensures that everyone in the household knows what to do in a real fire situation; and WHEREAS, Fridley first responders are dedicated to reducing the occurrence of home fires and home fire injuries through prevention and protection education; and WHEREAS, the 2017 Fire Prevention Week theme, "Every Second Counts: Plan 2 Ways Out!" effectively serves to educate the public about the vital importance of developing a home fire escape plan with all members of the household and practicing it twice a year; NOW THEREFORE, BE IT RESOLVED, that I, Scott J. Lund, Mayor of the City of Fridley, do hereby proclaim October 8-14, 2017, as Fire Prevention Week throughout this community. I urge all the people of Fridley to develop a home fire escape plan with all members of their household and practice it twice a year; and to participate in the many public safety activities and efforts of the Fridley Fire Department during Fire Prevention Week 2017. IN WITNESS WHEREOF, I have set my hand and caused the seal of the City of Fridley to be affixed this 25`"day of September, 2017. Scott J. Lund, Mayor ;iul Cerridt'<J Fley gj! / / I • COMMUNITY PLANNING MONTH OCTOBER, 2017 cat) WHEREAS, change is constant and affects all cities and towns; and WHEREAS, Community planning can help manage this change in a way that provides better choices for how people work and live; and WHEREAS, Community planning strives to help our City achieve our shared vision of Fridley being a safe, vibrant,friendly and stable home for families and businesses; and WHEREAS, Community planning provides an opportunity for all residents to be meaningfully involved in making choices that determine the future of their community; and WHEREAS, the American Planning Association and the American Institute of Certified Planners, endorse National Community Planning Month as an opportunity to highlight the City of Fridley Planning accomplishments and City staff and to publicly recognize the dedication of the members of the Planning Commission, Environmental Quality and Energy Commission, Appeals Commission, Housing and Redevelopment Authority, Parks and Recreation Commission, and citizen planners who dedicate their time to the City's planning efforts; and WHEREAS, the month of October is designated as National Community Planning Month throughout the United States of America; and WHEREAS, the full benefits of planning requires public officials and citizens who understand, support, and demand excellence in planning and plan implementation; and WHEREAS, we recognize the many valuable contributions made by professional community and regional planners of the State of Minnesota and extend our heartfelt thanks for the continued commitment to public service by these professionals; NOW THEREFORE, BE IT RESOLVED, that I, Scott J. Lund, Mayor for the City of Fridley, do hereby proclaim the month of October, 2017, to be: COMMUNITY PLANNING MONTH in the City of Fridley, Minnesota. IN WITNESS WHEREOF, I have set my hand and caused the seal of the City of Fridley to be affixed this 25`h day of September, 2017. Scott J. Lund, Mayor CITY COUNCIL MEETING CITY OF FRIDLEY SEPTEMBER 11,2017 The City Council meeting for the City of Fridley was called to order by Mayor Lund at 7:00 p.m. ROLL CALL: Mayor Lund Councilmember Barnette Councilmember Varichak Councilmember Saefke Councilmember Bolkcom OTHERS PRESENT: Wally Wysopal, City Manager Darcy Erickson, City Attorney Shelly Peterson, Finance Director James Kosluchar, Public Works Director PROCLAMATIONS Chiari Malformation Day—September 6, 2017 Constitution Week—September 17-23, 2017 APPROVAL OF PROPOSED CONSENT AGENDA: APPROVAL OF MINUTES: City Council Meeting of August 28, 2017. APPROVED. NEW BUSINESS: 1. Received the Minutes from the Planning Meeting of August 16,2017. RECEIVED. 2. Approve Special Use Permit Request, SP #17-03, by American Masonry, to Allow Limited Outdoor Storage, Generally Located at 55—77th Avenue; and Resolution Approving Special Use Permit, SP #17-03 to Allow Outdoor Storage for American Masonry Located at 55—77th Avenue N.E. (Ward 3). 1 FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 11,2017 PAGE 2 APPROVED SPECIAL USE PERMIT, SP #17-03 AND ADOPTED RESOLUTION NO. 2017-42. 3. Approve Lot Split Request, LS #17-02, by Don and Julie Findell, to create Two Single Family Lots from One Large Single Family Lot, Generally Located North of 6700 Central Avenue NE; and Resolution Approving a Subdivision, Lot Split, LS #17-02, to Create Two Single Family Lots from the Large Lot Generally Located North of 6700 Central Avenue NE (Ward 2) THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 4. Resolution declaring Cost to be Assessed and Ordering Preparation of Proposed Assessment for the Street Improvement Project No. ST 2017-01. ADOPTED RESOLUTION NO. 2017-44. 5. Resolution Directing Publication of the Hearing on the Proposed Assessment for the Street Improvement Project No. ST 2017-01. ADOPTED RESOLUTION NO. 2017-45. 6. Resolution Directing Preparation of the Assessment Roll for the 2017 Nuisance Abatement. Wally Wysopal, City Manager, said the 2017 Nuisance Abatement project included 161 properties. ADOPTED RESOLUTION NO. 2017-46. 7. Resolution Directing Publication of Hearing on the Proposed Assessment Roll for the 2017 Nuisance Abatement ADOPTED RESOLUTION NO. 2017-47. 8. Approve Change Order No. 1 for the Main Street Trail Project No. ST2015-21. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 9. Approve Agreement Relating to Landowner Improvements within City Right-of-Way on 5906 Benjamin Street N.E. (Ward 2). 2 FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 11,2017 PAGE 3 THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 10. Claims 177925— 178075. APPROVED. 11. License: Temporary On-Sale Intoxicating Liquor. APPROVED. ADOPTION OF PROPOSED CONSENT AGENDA: Councilmember Bolkcom asked for Item Nos. 3, 8, and 9 to be removed from the Consent Agenda and placed on the Regular Agenda. MOTION by Councilmember Barnette to approve the Proposed Consent Agenda with the removal of Item Nos. 3, 8 and 9 with the corrections noted by the City Manager on item nos. 6 and 7 is for 161 properties. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. OPEN FORUM, VISITORS: No one from the audience spoke. ADOPTION OF AGENDA: MOTION by Councilmember Bolkcom to approve the agenda with the addition of Item Nos. 3, 8 and 9. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. PUBLIC HEARINGS/NEW BUSINESS: 12. Consideration Revocation of Special Use Permit, SP #93-10, for Mobile Maintenance, Inc., to have Exterior Storage of Materials and Equipment in a C-1 Zoning District, Generally Located at 505 Fairmont Street N.E. (Ward 3) (Continued August 14,2017). MOTION by Councilmember Bolkcom to waive the reading of the public hearing notices and open the public hearings. Seconded by Councilmember Saefke. 3 FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 11,2017 PAGE 4 UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARINGS OPENED AT 7:12 P.M. Scott Hickok, Community development Director, said he would present Item Nos. 12 and 13 together in one presentation. He stated that staff requested review this summer and the curb installation stipulated in 2014 had not been completed. The current status is that the curbing is installed, the sod is partially installed and some exposed soil remains on the adjoining residential lot. With respect to the parking situation, the large trucks are removed and employee parking is next door. Mr. Hickok said the owner obtained Special Use Permit, SP#16-04, in June 2016 to expand the parking lot onto the R-1 lot to west. Due to the expense, the owner decided to instead store the large trucks elsewhere and install curbing on the existing paved area. In order to clear the property record of this change, Council needs to revoke the special use permit and the City needs to adopt a resolution. Staff recommends Council revoke Special Use Permit, SP#16-04, by adopting the resolution as the owner has decided not to expand the parking lot. Council should consider continuing the hearing on Special Use Permit, SP#93-10, as sod/seeding needs to be completed on the R-1 lot and the new sod needs to be irrigated. Councilmember Bolkcom asked what would happen if the rest of the work does not get completed. Mr. Hickok replied they are choosing to irrigate the 5-foot strip of the commercial property and this can be done manually. If they irrigate and keep the sod/seed vital that would be acceptable. The other piece is on the residential lot, irrigation is not required, and that is the intent of the owner. Councilmember Bolkcom asked if the City had anything to keep the owner accountable if he does not do the work. Mr. Hickok replied the action to revoke the special use permit has to do with the residential lot and soil that is not covered yet. If the residential lot becomes an erosion issue, action could be taken at a later time. Mr. Witzel is meeting the requirements on the commercial lot. Mr. Witzel apologized and said he did not realize that the residential lot was separate from the commercial lot. He did make the commercial lot compliant and plans to seed the residential lot as soon as he can get someone to do it. Mayor Lund asked what the timeline was to seed the residential lot. Mr. Witzel replied within the next couple of days. MOTION by Councilmember Bolkcom to close the public hearing. Seconded by Councilmember Saefke. 4 FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 11,2017 PAGE 5 UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING CLOSED AT 7:24 P.M. Councilmember Bolkcom said Mr. Witzel has met the requirements, and Special Use Permit, ST#93-10 will not be revoked. 13. Consider Revocation of Special Use Permit, SP #16-04, for Mobile Maintenance,Inc., to Expand Automobile Parking in an R-1 Zoning District, Generally Located at 513 Fairmont Street N.E. (Ward 3) (Continued August 14,2017) MOTION by Councilmember Bolkcom to adopt Resolution No. 2017-48. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 14. Consider Modification to the Fridley City Code, Chapter 205.30 0-5 Telecommunications Tower and Facilities District, to Allow a Telecommunications Tower to a 150 Foot Height Provided Conditions can be Met to Blend into the Surrounding Environment. MOTION by Councilmember Saefke to open the public hearing. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, AL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING OPENED AT 7:27 P.M. Scott Hickok, Community Development Director, stated that the City's telecommunications overlay created in 1997 has been a great tool that has needed little change over the last 20 years. However, technology is continually changing which requires staff to look at doing updates from time to time. There have been inquiries about whether under certain conditions a 150 foot tall tower might be permitted rather than the code-required 125 feet. Staff has analyzed this question and is providing a recommendation of approval if certain criteria can be met. Mr. Hickok explained the criteria: The tower is located within 250 feet of any of the following structures that exceed the height of 150 feet. These structures include: buildings, power lines, and train/rail yard fixtures such as light fixtures. The tower can meet or exceed any local, State, or Federal regulations relative to tower fall distance. All permits required to replace or expand an existing tower shall be removed and approved by the City prior to alteration. Mr. Hickok said the current code requires stealth design so that the tower to the extent it can, will blend in with the surrounding environment. In Fridley, there are enormous above-ground power structures, railroad signal structures and other elements which exceed 125 feet high. By allowing an increase in height on cell towers in areas where other taller structures exist, the stealth intent can be met. The increase in height will also allow for more co-location on the towers of other cell carrier companies,therefore reducing the need for more towers. 5 FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 11,2017 PAGE 6 Mr. Hickok stated the Planning Commission held a public hearing for TA #17-01 at their August 16, 2017, meeting. No comments from the public were received. The Commission recommended approval of the ordinance amendment. City staff recommends concurrence with the Planning Commission and Council hold a public hearing on this matter. The first reading of the ordinance is scheduled for September 25, 2017, unless otherwise directed by Council. Councilmember Bolkcom asked if a structure goes away, could the tower stay there. Mr. Hickok replied that if the backdrop did not exist, it would not be fair to ask for the other tower to be removed. Council would have the opportunity to review if another structure were to replace the one that went away. Councilmember Bolkcom asked what the tower fault distance was. Mr. Hickok replied that had to do with insurance regulations and hurricanes. In the event that a tower would fall, a reasonable distance would need to be cleared so the tower would not fall on top of a structure. Typically, towers are designed to telescope but we are defining that as one of the requirements. Councilmember Bolkcom asked if there were any towers now that were close to residential properties. Mr. Hickok replied yes and the fall distance has been considered on all of them. MOTION by Councilmember Saefke to close the public hearing. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING CLOSED AT 7:37 P.M. MOTION by Councilmember Saefke to approve the modification to the Fridley City Code, Chapter 205.30 0-5 Telecommunications Tower. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 15. Resolution Consenting to the Housing and Redevelopment Authority in and for the City of Fridley,Minnesota,Adopting a 2017 Tax Levy Collectable in 2018. Shelly Peterson, Finance Director, stated MN Statutes authorize HRAs to levy properties within the community to support housing and redevelopment efforts. The 2018 levy is equal to .0185% of the estimated market value,which is the maximum allowed by law. The 2018 Levy will allow HRA to collect $477,023. The HRA approved the levyat their September 7 meeting. The Final HRA levy is due to Anoka County no later than September 15. Staff recommends Council approve the HRA levy payable in 2018. 6 FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 11,2017 PAGE 7 Councilmember Barnette asked if the value would be an increase of $34 a year on taxes to cover this. Ms. Peterson replied yes, this is a high calculation so the final calculation may be less. MOTION by Councilmember Saefke to adopt Resolution 2017-49. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 16. Resolution Adopting the 2018-2022 Capital Investment Program. Shelly Peterson, Finance Director, stated the General Fund preliminary budget is balanced with an estimated levy increase of 5%. Balancing of the General Fund preliminary budget does not include the use of reserves. Staff is continuing to identify cost savings, additional revenue sources and potential increases in revenue projections. Ms. Peterson reviewed the Capital Funds and said there is no change in the portion of LGA allocation proposed for Capital Funds. 2018 reflects the deferment of$268,000 in Police, Fire and Public Works equipment. All Capital funds are anticipated to use reserves to support 2018 projects. The total reserves to be used for all capital funds are $470,000 (excluding the Building Fund). The Street Fund is anticipated to use $217,000 in reserves. In 2019, debt financing of $1.5 million is necessary to fund Police & Fire equipment in 2019 and 2020. We continue to research alternative reliable funding sources for 2018 and beyond. Ms. Peterson stated the Utility Funds are continually rehabilitating and replacing Water, Sewer and Storm Water infrastructures. The Utility Rate Study for Water and Sewer funds will be presented to Council at the September 25 conference meeting. If consumption and expenditure estimates hold, it could provide the City with a Water and Sewer rate schedule for the next 10 years. After 2018, rate increases are anticipated to stabilize after initial re-alignments of customer classes and consumption tiers. The highlights of the study indicate Water and Sewer Funds will require debt/borrowing every 3 years. The study projects there will be 2018 revenue increases of 11% for Water and 4.3% for Sewer. The goal is to stabilize rate increases to about 3% per year, and the forecast goes out over 10 years. This is dependent on consumption and expenditure assumptions. Ms. Peterson said the Liquor Operation Fund administrative charges were re-initiated in 2018, and the cash reserves are anticipated to increase in 2018. The feasibility study on a potential third store was completed and we are monitoring the impact of the HyVee project in Spring Lake Park. In summary, this plan addresses the basic capital needs for 2018 and it sets the groundwork for future projects. More work needs to be done to identify additional operational savings and find reliable funding sources for future capital projects and ensure healthy reserves in all funds. The Street Fund evaluation will be done over the next year to re-align projects and update the special assessment policy. 7 FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 11,2017 PAGE 8 Ms. Peterson reviewed the timeline: • Council to adopt the 2018-2022 Capital Investment Program tonight. • At the September 25 meeting Council will approve a preliminary tax levy. • At the November 27 meeting Council will hold a public meeting on the 2018 budget and proposed tax levy. • On December 11 Council will adopt the final 2018 budget and tax levy. Staff recommends approval of the resolution adopting the 2018-2022 Capital Investment Program. Councilmember Bolkcom asked why the expenditures in IT in red for$125,000 start in 2020. Ms. Peterson replied that IT systems traditionally only plan out three years and this is a 5-year document. That is the estimated fund balance average spending for IT projects. It is an anticipated target balance. Councilmember Bolkcom asked why the expenditures for the Municipal Center, start at $48,782,000 and why there was a gap between 2020 and 2021 and then the amount of$40,000 is listed for 2022. Ms. Peterson replied this budget is for the new civic campus and they are not anticipating significant repairs. Once we are in the new building, staff will have a better idea what type of repairs will be needed. Councilmember Bolkcom asked if the security cameras were for parks. She said she thought it was a larger amount. Ms. Peterson replied that is for the Nature Center. She will check to verify that amount. Councilmember Bolkcom asked for clarification on the body cameras. Ms. Peterson replied that was listed in two spots by mistake and staff will make that correction. MOTION by Councilmember Saefke to adopt Resolution 2017-50. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 17. Resolution Approving Agreements and Awarding Oak Glen Creek Pond Expansion Project No. 17-446 Jim Kosluchar, Public Works Director, stated that in 2013, the City of Fridley completed the Oak Glen Creek Stabilization Project west of East River Road. While this project was successful in mitigating erosion, it was identified that peak flows from upstream contributed to potential for 8 FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 11,2017 PAGE 9 future erosion. In addition, severe flooding frequently occurs on and between Commerce Lane and the BNSF railroad tracks. The City has a detention pond just upstream of the tracks, but it is undersized for the 520-acre upstream subwatershed, which flows through this pond. The upstream watershed, located entirely in Fridley has very little ponding or detention. Flooding impacts Commerce Lane multiple times per year. Treehouse Foods, located on Commerce Lane, is impacted by flooding as well. Their loading dock area frequently floods and floats their trailers. In rare events, floodwater can enter their building, requiring expensive production shutdown and cleanup. Mr. Kosluchar said in 2014, the City requested that the Anoka Conservation District apply for funding to improve water quality and mitigate funding by expansion of the existing City pond. The request was funded by the State BWSR for $517,780. Property was requested from Treehouse Foods' predecessor as their match for the City and grant funding. Since that time, the property has changed hands twice. Also, rainfall design storms have changed. Finally, multiple options have been reviewed with Treehouse staff and their engineers to finalize the project. The project will include expansion of the pond and the addition of an Iron Enhanced Sand Filter. A swale will be constructed atop the City's 60" diameter storm sewer interceptor to enhance capacity of the storm system. Some grading at the north Treehouse entrance will also occur to further separate surcharged piping from their property. Mr. Kosluchar stated under a separate phase of the project, an outfall pipe serving the lowest area around the Treehouse loading dock will be improved. Treehouse wanted the City to relocate the interceptor so they could expand, but it was found to not be financially feasible at this time. In order to fulfill the terms of the grant, the City must enter into a joint powers agreement. Under this agreement, the City will be responsible for construction of the pond and IESF. The City will further be responsible for maintenance of the system for 25 years. A second agreement sets the terms between the City and Treehouse Foods. Treehouse will donate 1.33 acres of unimproved property to the City of Fridley. The City will construct improvements outlined with no assessment to Treehouse. Treehouse will be able to discharge to the pond if additional development occurs. He said the project budget was $900,000, and the final engineer's estimate was $929,540. Bid letting was held on August 24, 2017, and five bids were received. The low bid was submitted by Peterson Companies in the amount of$733,831.50. Mr. Kosluchar said that Peterson Companies, of Chisago City, performed well in constructing an IESF for the Anoka Conservation District. This project will be funded from a $900,000 allocation in the Storm Water Capital Fund. The remaining improvement is estimated at $140,000, which will allow its completion. Staff recommends the City Council adopt the attached resolution. If approved, staff will move forward and with the City Attorney, prepare final documents for execution by the City and counterparts. The project will be completed this fall. The project will mitigate one of the top two frequent flooding issues in Fridley. Mayor Lund asked how much water came from Spring Lake Park. Mr. Kosluchar replied that this does not have any water coming from Spring Lake Park, it is all Fridley goodrequirement This will be for our waters and river. This is a re uirement that needs to be met at some point. 9 FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 11,2017 PAGE 10 Councilmember Bolkcom asked if the property was on hand or if it needed to be acquired. Mr. Kosluchar replied that once the project was executed, we have provided attorney documents for the easement. That is part of the project agreement. Councilmember Bolkcom asked with respect to secured rights if one had an advantage over the other. Mr. Kosluchar replied that staff left the decision with them as to what their preference was. Staff will accept either one. Darcy Erickson, City Attorney, added that either option is acceptable for the purpose of this project. Councilmember Bolkcom asked if staff had any idea what the maintenance cost would be over the years. Mr. Kosluchar replied there is an operation and maintenance guide. The City will have to maintain the existing ponds but he will get back to Council with what the additional cost would be. It is usually 3-4 figures annually. Councilmember Bolkcom noted the grant agreement specifies an expiration date of 12/31/2016 or until obligations are met or whichever comes first. She said it was past the expiration date. Mr. Kosluchar replied there was a one-year extension on the project because of the property exchange. The Anoka Conservation District helped with that extension. Councilmember Bolkcom asked if the conservation representative signature was needed. Mr. Kosluchar replied yes. Councilmember Bolkcom asked when the work would begin. Mr. Kosluchar replied that they would start this fall and finish most of the work this fall. It will take about three months to complete the project. MOTION by Councilmember Bolkcom to adopt Resolution No. 2017-51. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 10 FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 11,2017 PAGE 11 3. Approve Lot Split Request, LS #17-02, by Don and Julie Findell, to create Two Single Family Lots from One Large Single Family Lot, Generally Located North of 6700 Central Avenue NE; and Resolution Approving a Subdivision, Lot Split, LS #17-02, to Create Two Single Family Lots from the Large Lot Generally Located North of 6700 Central Avenue NE (Ward 2) Councilmember Bolkcom asked with respect to the concrete that was pushed over the cliff, if the engineer needed to verify the pier before it was removed. She asked if another stipulation was needed related to the concrete pier about whether it could stay or not. Scott Hickok, Community Development Director, replied the stipulation was directly related to the lose concrete that was pushed over the slope. The large concrete pier would probably need an analysis before that was removed. This would be the landowner's issue and does not affect the lot split. That pier may have historic significance and stabilizing characteristics. Staff is not mandating that to be removed. Councilmember Bolkcom stated the pier is not related to the lot split and has nothing to do with the stipulation. It may come up in the future if a building permit were requested for this lot. Mr. Hickok replied that it is not unusual for things like this with historic significance to exist in the community. The stipulation is to remove just the concrete that is over the natural bluff. Staff does not know how the large concrete slab got there but that is up to the future owner to decide what to do with it. Ms. Findell,owner of the property, said they have a person interested in purchasing the entire lot so they may not need the lot split. It will not be a problem to remove the concrete that is over the bluff as there is very little there. This was a dump site for over 30 years and people have even dumped refrigerators on this site that will need to be removed. MOTION by Councilmember Varichak to approve Lot Split Request, LS #17-02, by Don and Julie Findell, and to adopt Resolution No. 2017-42. Seconded by Councilmember Bolkcom. Ms. Findell asked what address would be assigned to the property. Mr. Hickok replied that an address would be assigned with the building permit. If the permit is for one property, only one number would be assigned. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 11 FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 11,2017 PAGE 12 8. Approve Change Order No. 1 for the Main Street Trail Project No. ST2015-21. Councilmember Bolkcom was curious as to what kind of debris that was there that we did not know about. Jim Kosluchar, Public Works Director, replied that a person was living there and had accumulated material in the right of way. MnDOT does not have staff to clean up the site and when they do, it takes months, so it was cleaned up under this contract. MOTION by Councilmember Bolkcom to approve Change Order No. 1 for the Main Street Trail Project No. ST2015-21. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 9. Approve Agreement Relating to Landowner Improvements within City Right-of-Way on 5906 Benjamin Street N.E. (Ward 2). Councilmember Bolkcom asked on page 54 regarding improvements for purpose to inspect and repair, etc., if it was up to Council how that is decided. Darcy Erickson, City Attorney, replied this is our standard agreement used with other property owners with encroachments. This allows the Public Works Director or designee to take action if they thought the small wall has hit or in a state of disrepair and needs to be repaired. If the property owner does not repair it, the City will send a notice and bill them for the expenses associated with removal. Councilmember Bolkcom asked if part of it falls apart and City staff repair it and ask the property owner to pay, then they have 30 days to pay for the repair. Jim Kosluchar, Public Works Director, replied that staff will give them notice to repair in case they did not see something needed repair and then notify them to pay. The agreement is well written to cover the City's interests thoroughly. Time and ability of the home owner to repair is a factor in whether the City or property owner does the repair. Councilmember Bolkcom said on page 55, is says that the charge to repair would be certified to the property owner's taxes. Mr. Kosluchar replied yes, charges would be recorded with the property. If the property owners are doing anything near the roadway, they should call and ask. In this case, the wall could have been built a few feet in and there would not have been an issue. Mayor Lund asked if there was any recourse with the old owner and if there was any proof that a landscaping service built this. Mr. Kosluchar said he did not know. No permit was issued for this work. 12 FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 11,2017 PAGE 13 Mayor Lund noted that a professional landscaper would have known to contact the City. Councilmember Barnette asked if this would affect snow storage. Mr. Kosluchar replied their main question was about maintenance and they are okay with it. Attorney Erickson noted an error where it lists 3.7 and 3.9 with the omission of 3.8. She asked that when the motion is made that it reflects a correction on page 54 to omit 3.8 and Subparagraph B there is reference to 3.8 that doesn't exist. Omit that as well. Councilmember Varichak wanted to ensure staff is aware of the issues with this wall and will put in some stabilization mechanism so it will not fall again. Mr. Kosluchar replied yes, staff is aware of that and will look at those issues. Councilmember Bolkcom said if a snowplow knocks the wall down and the owners know they cannot call the City to repair it, they are taking responsibility if something happens to it. Mr. Kosluchar replied correct. MOTION by Councilmember Varichak to approve the Agreement Relating to Landowner Improvements within City Right-of-Way on 5906 Benjamin Street N.E. (Ward 2) with the omission of 3.8; and reference to 3.8, Subd. B, is no longer necessary. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 18. Informal Status Reports. Councilmember Bolkcom asked what was going on with East River Road and the new intersection. Jim Kosluchar, Public Works Director, said he will take a look at it and meet with the project manager and send an update to Council. If there are questions, you can go to the Anoka County Highway website and get a construction update. This is updated weekly. Councilmember Bolkcom thanked all who helped with the Art at Rice Creek event. Mr. Kosluchar announced that tomorrow night there is an open house for the Stonybrook flood control project. Owners who have had flooding are encouraged to attend. They are looking at rerouting the water as an efficient way to complete the project. There was a meeting last week with the Coon Creek Watershed District project and they had funding to remove pollutants with charcoal filtering. This new technology will be used to test water coming out of Springbrook. 13 FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 11,2017 PAGE 14 Tim Kelly, Administrator of the Coon Creek Watershed District, said there is a grant program available to deal with three properties affected by slumping. They have continued to fill out the grant and rank very high on the grant. Funds are available on a first come, first served basis, and we are now at the crossroad with a local sponsoring agency. It can be a City or District. It takes time to fill out the information and the City has more experience in administrating other FEMA grants from an accounting standpoint. He will continue to provide a supportive role to the City. Eventually our responsibility will be phased out and will then provide recommendations to homeowners and assist the engineer to complete the report. They are trying to get a sense as to who should take the lead moving forward. Councilmember Bolkcom was thankful for his involvement with this project. She asked if the City was at risk if only 2 or 3 property owners want to go forward with the project and something happens with another home. Mr. Kelly replied that the FEMA-preferred option is to purchase the homes and rectify the lots which leaves the City in a better position to facilitate on what to do. If owners opt to stay, they may not fully understand what is at risk. This will happen in the future but not sure when. Right now this is moving slowly but could move faster in the near future. Mayor Lund said it sounds like more time is needed to analyze our involvement with this project. Mr. Kelly noted that there would be an opportunity to add more later. Once a final agreement is completed, an analysis will be done to figure out the most cost-effective way to use the funds. Mayor Lund said the Fridley Municipal Liquor Store and Springbrook Nature Center are having an Autumn Sampler with wine and beer; for $25 a ticket. It is an adult night out—people must be over 21 to attend. This event is on September 15 from 6-9 p.m. Proceeds will be used for the picnic pavilion at the Springbrook Nature Center. Scott Hickok, Community Development Director, said there is a neighborhood meeting Thursday evening to follow up on the discussion about the future development of the private patio homes along 69th Avenue south of the new civic campus project. The meeting will be held in the neighborhood in the park and starts at 7:00 p.m. ADJOURN: MOTION by Councilmember Barnette to adjourn. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED AND THE MEETING ADJOURNED AT 8:55 P.M. Respectfully submitted, Krista Peterson Scott J. Lund Recording Secretary Mayor 14 AGENDA ITEM AIN/ °f ley CITY COUNCIL MEETING OF Frid SEPTEMBER 25, 2017 Date: September 18, 2017 To: Walter T.Wysopal, City Manage From: Scott Hickok,Community Development Director Julie Jones, Planning Manager Stacy Stromberg, Planner Subject: Resolution approving Variance Request,VAR#17-02,Gaughan Development LLC REQUEST The petitioner, Dan Hebert, of Gaughan Development LLC, has submitted a variance application to reduce the east side setback on a corner lot from 35 ft. to 30 ft. to develop the vacant parcel of land at the northwest corner of 83`d Avenue and University Avenue with the construction of two new retail buildings. I Building A is the southernmost building and is proposed to be 5,450 sq. ft. in size and Building B is the northernmost building and is proposed to be 6,035 sq. ft. %' " ` in size. Each building is designed for multi-tenants and is required to have four-sided architecture. s ,,:"*A116 dim am. ¥ z ,.$y ". SUMMARY OF PRACTICAL DIFFICULTIES BY THE PETITIONER ;= "Due to the unusual triangular shape of the site as well as =Y: 11 large setbacks on three sides of the site because of the i three adjacent roadways, a variance is being requested." E tVar- APPEALS COMMISSION RECOMMENDATION 's ` At the September 6,2017,Appeals Commission meeting, a public hearing was held for VAR#17-02. After a brief discussion,the Appeals Commission recommended approval of the variance,with the stipulations presented by staff. THE MOTION CARRIED UNANIMOUSLY. PLANNING STAFF RECOMMENDATION City Staff recommends concurrence with the Appeals Commission and approval of the attached resolution. STIPULATIONS 1. The petitioner shall obtain any required permits prior to the start of construction. 2. Thep etitioner shall meet all building,fire, and ADA requirements. 3. City engineering staff to review and approve grading, drainage, and utility plan prior to issuance of a building permit. 4. The petitioner shall comply with Coon Creek Watershed District regulations. 15 5. Landscape and Irrigation plan to be reviewed and approved by City Staff prior to issuance of building permit. 6. Additional architectural elements shall be added to the east side of the building(ex.spandrel glass, windows, and awnings). To be approved by planning staff prior to issuance of a building permit. 7. Site plan shall be modified to include a bike rack near the regional bike trail on University Avenue. 8. The developer shall complete a traffic study prior to issuance of a building permit to analysis on-site circulation, access points to the site, and safe pedestrian crossing. 9. The developer shall complete a wetland delineation of the site prior to issuance of a building permit. 16 City of Fridley Land Use Application VAR#17-02 September 6, 2017 GENERAL INFORMATION SPECIAL INFORMATION Applicant: SUMMARY OF PROJECT Gaughan Development LLC Dan Hebert, of Gaughan Development LLC, is Attn: Dan Hebert requesting a variance to reduce the side yard 56 East Broadway,Suite 200 setback on a corner lot from 35 ft.to 30 ft., to allow Forest Lake MN 55025 for construction of two new retail buildings on the Requested Action: vacant parcel of land located at the northwest Variance reducing the side yard setback on corner of 83rd Avenue and University Avenue. a corner lot SUMMARY OF PRACTICAL DIFFICULTIES Existing Zoning: "Due to the unusual triangular shape of the site as well as C 2 (General Business) large setbacks on three sides of the site because of the Location: three adjacent roadways, a variance is being requested." NE corner of 83`d Ave and University Ave Dan Hebert SUMMARY OF ANALYSIS Size: City Staff recommends approval of the variance. 74,732 sq. ft. 1.73 acres • Practical difficulties exist-property is Existing Land Use: bordered on all sides by public right-of-way Vacant land = "� .. x � Surrounding Land Use&Zoning: ,'. . 1 � „� N . N: Walmart&C-3 ' F f, E: University Ave & ROW , :it S: Medical Bldg&C-2 �, ;: I W: Bandfill Crossings&C 2 I> i , t, Comprehensive Plan Conformance: °` 3 Plan designates this lot as Vacant Zoning Ordinance Conformance: B ' y,� : ; � � Section 205.14.3.C. 2 bre requires a side 9' �` ka yard setback of 35 ft. for a corner lot • w w ` ` �,= Legal Description of Property: P.". i'---: Lot 1, Block 2, Springbrook Apartments at "t Northtown aaa�trr--,h ; Zoning History: F <�t �{_ 1987-m Lot platted �� ' t � Lot remains vacant `- Public Utilities: Available in street Transportation: Aerial of Property UniversityAver u Se-r ice nye will provide - - ON/60 DAY DATE access to the property City Council-September 25, 2017 Physical Characteristics: 60 Day-August 2, 2017 Heavy wooded,vacant lot Staff Report Prepared by: Stacy Strom 17 Land Use Application Variance #17-02 PROPOSED PROJECT AND REQUEST The petitioner, Dan Hebert, of Gaughan Development LLC, has submitted a variance application to develop the vacant parcel of land at the northwest corner of 83rd Avenue and University Avenue with the construction of two new retail buildings. Building A is the southernmost building and is proposed to be 5,450 sq.ft. in size and Building B is the northernmost building and is proposed to be 6,035 sq.ft. in size. Each building is designed for multi-tenants and is required to have four- sided architecture. • The petitioner has had interest from a national retail rte'. u - tti tenant who is interested in this site. As the City saw with the redevelopment of Fridley Market on 57th Avenue;a N " drive-thru is an important feature that many retailers in ._ _ ; today's market are looking for, so both of the proposedte,. buildings have been designed to offer a drive-thru. 44; .. - • Building B will also provide an area for outdoor seating ` I°' ` °- for a restaurant user and landscaping with trees,shrubs and perennials will border the site. ' � �' G, Storm water runoff is proposed to be managed through an underground storage chamber system complying with City and Watershed requirements. To allow development of this parcel of land,the petitioner is requesting a variance to reduce the side yard setback on the east side of this corner lot from 35 ft.to 30 ft.,to allow the construction of two new buildings. SUMMARY OF PRACTICAL DIFFICULTIES BY THE PETITIONER "Due to the unusual triangular shape of the site as well as large setbacks on three sides of the site because of the three adjacent roadways,a variance is being requested." ANALYSIS The subject property is zoned C-2,General Business,as is a similar turn-back parcel to the south. It is bordered by 83`d Avenue on the south, University Avenue on the east and the University Avenue Service Drive on the west and north. This property is considered a turn-back parcel because it has roadway on all sides of it. Turn-back parcels within the City have generally been hard to develop because of setback requirements,which may in part explain why this site hasn't been developed. In the C-2,General Business zoning district,City code requires a 35 ft.front yard setback and a 35 ft. setback along any side or rear yards that abut a right-of-way. So for this lot,a 35 ft. building setback is required on all sides. The petitioner is asking to have that setback reduced on the east side from 35 ft. to 30 ft.,to allow for the construction of the two new buildings. The 35 ft. building setback requirement can be achieved on all other sides. 18 All other code requirements related to setbacks, lot coverage and parking are being met with the proposed site plan. PRACTICAL DIFFICULTIES Variances may be granted if practical difficulties exist on the property. Practical difficulties are met based on the following findings of fact: • Is the variance in harmony with the purpose and intent of the ordinance? o The intent of the side yard setback is to ensure that there is sufficient room for green space and to provide adequate area around the building for emergency access. o The site plan is showing a 20 ft.drive aisle around the building,which is what is required for emergency access. o This property has an unusually large right-of-way along University Avenue(approx.70 ft.)which will continue to provide a buffer between the new building and the road way, and it will provide green space. • Is the variance consistent with the Comprehensive Plan? o The Comprehensive Plan mistakenly guides this property as Vacant. The City's intended plan for this property has always been a commercial use, and staff has noted the need to correct the error in the next Comprehensive Plan update. • Does the proposal put the property to use in a reasonable manner? o The proposed development of the property is considered a reasonable use. Within the City we have several of these turn-back parcels,which are difficult to develop with the setback constraints required for all sides along a right-of-way. Most of these parcels have required a variance of some kind to be developed. Granting a 5 ft. building setback variance is reasonable to allow for the development of this site. • Are there unique circumstances to the property, not created by the landowner? o Unique circumstances do exist on this property.The most unique circumstance is that it is a turn-back parcel that has right-of-way on all sides. Side yard setbacks in the commercial zoning districts is typically 15 ft., however because there is right-of-way on all sides of the property,the setback requirement increases to 35 ft.,which is the same as the front yard setback. Developing this site is difficult when needing to comply with that code requirement. • Will the variance, if granted,alter the essential character of the locality? o The University Avenue corridor is lined with other commercial users, many of them have buildings closer to the right-of-way then the proposed project;therefore,the essential character of the area will not be altered. RECOMMENDATIONS City Staff recommends approval of this variance request. • Practical difficulties exist—property is bordered on all sides by public right-of-way STIPULATIONS Staff recommends that if the variance is granted,the following stipulations be attached. 1. The petitioner shall obtain any required permit prior to the start of construction. 2. The petitioner shall meet all building,fire, and ADA requirements. 3. City engineering staff to review and approve grading, drainage, and utility plan prior to issuance of a building permit. 4. The petitioner shall comply with Coon Creek Watershed District regulations. 19 5. Landscape and Irrigation plan to be reviewed and approved by City Staff prior to issuance of building permit. 6. Additional architectural elements shall be added to the east side of the building(ex. spandrel glass, windows, and awnings). To be approved by planning staff prior to issuance of a building permit. 7. Site plan shall be modified to include a bike rack near the regional bike trail on University _ Avenue. 8. The developer shall complete a traffic study prior to issuance of a building permit to analysis on- site circulation, access points to the site, and safe pedestrian crossing. 9. The developer shall complete a wetland delineation of the site prior to issuance of a building permit. 20 CITY OF FRIDLEY APPEALS COMMISSION MEETING SEPTEMBER 6,2017 Call to Order: Chair Sielaff called the City of Fridley Appeals Commission to order at 7:00 p.m. Roll Call: Members Present: Aaron Jahnke Brad Sielaff Blaine Jones Vangyee Yang Others Present: Stacy Stromberg,Planner Dan Hebert, Gaughan Companies Tim Holter,Gaughan Companies Approve Appeals Commission Meeting Minutes: August 5,2015 MOTION by Commissioner Jones to approve the minutes as presented. Seconded by Commissioner Yang. UPON A VOICE VOTE,ALL VOTING AYE,CHAIR SIELAFF DECLARED THE MOTION CARRIED UNANIMOUSLY Public Hearing: 1. Variance,VAR 17-02,by Guaghan Development,LLC,is requesting a variance to reduce the side yard setback on a corner lot on the east side from 35 feet to 30 feet,to allow for the construction of two new retail buildings on the vacant parcel of land located at the northwest Corner of Intersection 83rd Avenue and University Avenue. MOTION by Commissioner Jones to open the public hearing. Seconded by Commissioner Yang. UPON A VOICE VOTE,ALL VOTING AYE,CHAIR SIELAFF DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING OPENED AT 7:01 PM Stacy Stromberg,Planner,said that the petitioner,Dan Hebert,of Gaughan Development LLC,has submitted a variance application to develop the vacant parcel of land at the northwest corner of 83'd Avenue and University Avenue with the construction of two new retail buildings. Building A is the southernmost building and is proposed to be 5,450 sq.ft. in size and Building B is the northernmost building and is proposed to be 6,035 sq. ft. in size. Each building is designed for multi-tenants and is required to have four-sided architecture. Ms. Stromberg said that the petitioner has had interest from a national retail tenant who is interested in this site. As the City saw with the redevelopment of Fridley Market on 57th Avenue;a drive-thru is an important feature that many retailers in today's market are looking for, so both of the proposed buildings 21 have been designed to offer a drive-thru.Building B will also provide an area for outdoor seating for a restaurant user and landscaping with trees,shrubs and perennials will border the site. Storm water runoff is proposed to be managed through an underground storage chamber system complying with City and Watershed requirements. Ms. Stromberg noted that to allow development of this parcel of land,the petitioner is requesting a variance to reduce the side yard setback on the east side of this corner lot from 35 ft.to 30 ft.,to allow the construction of two new buildings. The practical difficulties by the petitioner are that,Due to the unusual triangular shape of the site as well as large setbacks on three sides of the site because of the three adjacent roadways, a variance is being requested." Ms. Stromberg stated that the subject property is zoned C-2, General Business,as is a similar turn-back parcel to the south. It is bordered by 83rd Avenue on the south,University Avenue on the east and the University Avenue Service Drive on the west and north. This property is considered a turn-back parcel because it has roadway on all sides of it. Turn-back parcels within the City have generally been hard to develop because of setback requirements,which may explain why this site hasn't been developed. Ms. Stromberg noted that in the C-2, General Business zoning district,City code requires a 35 ft. front yard setback and a 35 ft. setback along any side or rear yards that abut a right-of-way. So for this lot, a 35 ft.building setback is required on all sides. The petitioner is asking to have that setback reduced on the east side from 35 ft.to 30 ft.,to allow for the construction of the two new buildings. The 35 ft. building setback requirement can be achieved on all other sides.All other code requirements related to setbacks, lot coverage and parking are being met with the proposed site plan. Ms. Stromberg stated that variances may be granted if practical difficulties exist on the property. Practical difficulties are met based on the following findings of fact: • Is the variance in harmony with the purpose and intent of the ordinance? o The intent of the side yard setback is to ensure that there is sufficient room for green space and to provide adequate area around the building for emergency access. o The site plan is showing a 20 ft. drive aisle around the building,which is what is required for emergency access. o This property has an unusually large right-of-way along University Avenue(approx. 70 ft.)which will continue to provide a buffer between the new building and the road way, and it will provide green space. • Is the variance consistent with the Comprehensive Plan? o The Comprehensive Plan mistakenly guides this property as Vacant. The City's intended plan for this property has always been a commercial use, and staff has noted the need to correct the error in the next Comprehensive Plan update. • Does the proposal put the property to use in a reasonable manner? o The proposed development of the property is considered a reasonable use. Within the City we have several of these turn-back parcels,which are difficult to develop with the setback constraints required for all sides along a right-of-way. Most of these parcels have required a variance of some kind to be developed. Granting a 5 ft. building setback variance is reasonable to allow for the development of this site. • Are there unique circumstances to the property,not created by the landowner? o Unique circumstances do exist on this property. The most unique circumstance is that it is a turn-back parcel that has right-of-way on all sides. Side yard setbacks in the commercial zoning districts is typically 15 ft.,however because there is right-of-way on all sides of the property,the setback requirement increases to 35 ft.,which is the same as the front yard setback. Developing this site is difficult when needing to comply with that code requirement. • Will the variance, if granted,alter the essential character of the locality? 22 o The University Avenue corridor is lined with other commercial users,many of them have buildings closer to the right-of-way then the proposed project;therefore,the essential character of the area will not be altered. Ms.Stromberg said that City Staff recommends approval of this variance request as practical difficulties exist—property is bordered on all sides by public right-of-way. Staff recommends that if the variance is granted,the following stipulations be attached. 1. The petitioner shall obtain any required permit prior to the start of construction. 2. The petitioner shall meet all building,fire, and ADA requirements. 3. City engineering staff to review and approve grading, drainage, and utility plan prior to issuance of a building permit. 4. The petitioner shall comply with Coon Creek Watershed District regulations. S. Landscape and Irrigation plan to be reviewed and approved by City Staff prior to issuance of building permit. 6. Additional architectural elements shall be added to the east side of the building(ex. spandrel glass, windows, and awnings). To be approved by planning staff prior to issuance of a building permit. 7. Site plan shall be modified to include a bike rack near the regional bike trail on University Avenue. 8. The developer shall complete a traffic study prior to issuance of a building permit to analysis on- site circulation, access points to the site, and safe pedestrian crossing. 9. The developer shall complete a wetland delineation of the site prior to issuance of a building permit. Commissioner Jones asked if the stipulations were reviewed with the developer. Ms. Stromberg replied yes. Dan Hebert,of Gaughan Development LLC, said he was comfortable with the stipulations and the last modifications came today. He would like to review the information regarding the wetlands as they are not familiar with that. The space that is leased out he wants to ensure the tenants are satisfied with the overall use of site. He would like to look at the delineation and investigate a little further. Chair Sielaff asked if he had any problems providing a traffic study. Mr.Hebert replied that they can make it work for all parties and make sure it is safe. People look for drive through's and different uses;they will try to adapt the space as best as possible. Commissioner Jones said that a traffic study is mostly for safety and usability of the site,not if the site has enough traffic coming. Mr.Hebert agreed;they know traffic coming from the MN/Dot reports;they have discussed this site plan and have four tenants excited about this project. This is a unique opportunity for this market with good accessibility of this property. He is also excited about the new Civic Campus as that will help support the new development. Chair Sielaff asked what the timeline was for development. Mr.Hebert replied that the plan to break ground in the spring of 2018. 23 MOTION by Commissioner Yang to close the public hearing. Seconded by Commissioner Jahnke. UPON A VOICE VOTE,ALL VOTING AYE,CHAIR SIELAFF DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING CLOSED AT 7:16 PM MOTION by Commissioner Jones to approve variance 17-02 to reduce east side yard set back from 35 to 30 of the subject property with 9 stipulations recommended by city staff. 1. The petitioner shall obtain any required permit prior to the start of construction. 2. The petitioner shall meet all building,fire, and ADA requirements. 3. City engineering staff to review and approve grading, drainage, and utility plan prior to issuance of a building permit. 4. The petitioner shall comply with Coon Creek Watershed District regulations. 5. Landscape and Irrigation plan to be reviewed and approved by City Staff prior to issuance of building permit. 6. Additional architectural elements shall be added to the east side of the building(ex. spandrel glass, windows, and awnings). To be approved by planning staff prior to issuance of a building permit. 7. Site plan shall be modified to include a bike rack near the regional bike trail on University Avenue. 8. The developer shall complete a traffic study prior to issuance of a building permit to analysis on- site circulation, access points to the site, and safe pedestrian crossing. 9. The developer shall complete a wetland delineation of the site prior to issuance of a building permit. Seconded by Commissioner Yang. UPON A VOICE VOTE,ALL VOTING AYE,CHAIR SIELAFF DECLARED THE MOTION CARRIED UNANIMOUSLY Other Business: Stacy Stromberg,Planner,welcomed Aaron Jahnke to the Appeals Commission and announced that the October meeting is cancelled. Adjourn: MOTION by Commissioner Jones to adjourn. Seconded by Commissioner Jahnke. UPON A VOICE VOTE,ALL VOTING AYE,CHAIR SIELAFF DECLARED THE MMOTION CARRIED AND THE PUBLIC HEARING CLOSED AT 7:18 P.M. Respectfully submitted, Krista Peterson Recording Secretary 24 RESOLUTION NO. 2017- A RESOLUTION APPROVING VARIANCE VAR# 17-02 TO REDUCE THE SIDE YARD SETBACK ON A CORNER LOT FROM 35 FEET TO 30 FEET TO ALLOW THE DEVELOPMENT OF THE VACANT PARCEL OF LAND ON THE NORTHWEST CORNER OF UNIVERSITY AVENUE NE AND 83RD AVENUE NE,PETITIONED BY GAUGHAN DEVELOPMENT LLC WHEREAS, on August 4,2017, an application for a Variance was submitted for the property with a Parcel Identification Number (PIN) of 02-30-24-22-0011 and legally described as Lot 1, Block 2, Springbrook Apartments at Northtown,Anoka County,Minnesota;and WHEREAS, Section 205.14.3.C.(2)(b) of the Fridley City Code requires a side yard setback when the side yard abuts a street of a corner lot of not less than thirty-five (35) feet in the C-2, General Business Zoning District;and WHEREAS, Section 205.05.06 of the Fridley City Code allows a variance to be granted where practical difficulties or unique circumstances exist that cause undue hardship in the strict application of the City Code; and WHEREAS, variance application,VAR#17-02 submitted by Gaughan Development LLC, for the property with PIN of 02-30-24-22-011,requests to reduce the side yard setback on a corner lot from 35 feet to 30 feet; and WHEREAS, on September 6, 2017, the Fridley Appeals Commission held a public hearing to consider variance request,VAR#17-02;and WHEREAS,a practical difficulty or uniqueness was found to exist based on the following fmdings: a. The request is in harmony with the general purpose and intent of the City Ordinance. • The intent of the side yard setback is to ensure that there is sufficient room for green space and to provide adequate area around the building for emergency access. • The site plan shows a 20 ft.drive aisle around the building,which is what is required for emergency access. • This property has an unusually large right-of-way along University Avenue(approx. 70 ft.)which will continue to provide a buffer between the new building and the road way, and it will provide green space. b. The Comprehensive Plan mistakenly guides this property as Vacant. The City's intended plan for this property has always been a commercial use,and staff has noted the need to correct the error in the next Comprehensive Plan update. c. The proposed development of the property is considered a reasonable use. There are several turn-back parcels within the City that are difficult to develop with the setback constraints required for all sides along a right-of-way. Most of these parcels have required a variance of some kind to be developed. Granting a 5 ft.building setback variance is reasonable to allow for the development of this site. d. Unique circumstances exist on the property,related to: • A turn-back parcel that has right-of-way on all sides is a unique circumstance. City code requires a 35 ft. setback from the right-of-way is required on all sides instead of 25 the standard 15 ft. setback for an interior commercially zoned lot which makes developing this site difficult. e. The essential character of the locality won't be altered as the University Avenue corridor is lined with other commercial users and many of them have buildings closer to the right-of- way then the proposed project. WHEREAS, at the September 6, 2017 meeting, the Appeals Commission unanimously recommended approval of Variance,VAR#17-02 based on the above findings;and WHEREAS, on September 25, 2017, the Fridley City Council approved the stipulations represented in Exhibit A to this resolution as the conditions approved by the City Council on Variance VAR# 17-02;and NOW, THEREFORE,BE IT RESOLVED, by the City Council of the City of Fridley that Variance,VAR# 17-02 and the stipulations represented in Exhibit A are hereby adopted and approved based on the above findings by the City Council of the City of Fridley. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 25TH DAY OF SEPTEMBER,2017. SCOTT LUND—MAYOR A fl EST: DEBRA A. SKOGEN-CITY CLERK 26 EXHIBIT A Variance,VAR# 17-02 PIN 02-30-24-22-011 Vacant Parcel at the Northwest corner of University Avenue and 83rd Avenue Stipulations: 1. The petitioner shall obtain any required permits prior to the start of construction. 2. The petitioner shall meet all building,fire, and ADA requirements. 3. City engineering staff to review and approve grading,drainage,and utility plan prior to issuance of a building permit. 4. The petitioner shall comply with Coon Creek Watershed District regulations. 5. Landscape and Irrigation plan to be reviewed and approved by City Staff prior to issuance of building permit. 6. Additional architectural elements shall be added to the east side of the building(ex. spandrel glass,windows,and awnings). To be approved by planning staff prior to issuance of a building permit. 7. Site plan shall be modified to include a bike rack near the regional bike trail on University Avenue. 8. The developer shall complete a traffic study prior to issuance of a building permit to analysis on- site circulation, access points to the site,and safe pedestrian crossing. 9. The developer shall complete a wetland delineation of the site prior to issuance of a building permit. • 27 1 clj)of AGENDA ITEM F dley CITY COUNCIL MEETING OF September 25, 2017 TO: Walter Wysopal, City Manage%ieJ PW17-059 FROM: James Kosluchar, Public Works Director Jon Lennander, Assistant City Engineer Nic Schmidt, Civil Engineer DATE: September 20, 2017 SUBJECT: Approve Change Order No. 1 (Final) for 2017 Street Project ST2017-01 Attached is Change Order No. 1 for the 2017 Street Rehabilitation Project ST2017-01. This will be the only change order request for this project. ST2017-01 rehabilitates streets and reconstructs selected utilities in the North Park neighborhood of Fridley. The project is being performed under contract with Northwest Asphalt, Inc. of Shakopee, MN. The amount of this change order is$53,137.17.There is no change to the contract completion date for the project as a result of this change order. Total work included in Change Order No. 1 for this project would increase the original contract by 6.6%. A detailed summary of the changes is attached. Major work activities directed under this change order include water utility items, storm drainage improvements, subgrade corrections for the roadway prior to paving, and pavement restoration. Watermain in the areas of fire hydrant replacement was deeper than anticipated. In order for the hydrants to be installed to match the existing grades, hydrant extensions needed to be installed. Additional pipe for extending the watermain to the hydrant was also required. Items C01-1 and C01- 2 accounted for$3,675.95 and$5,953.50, respectively of the total change order amount.Additional items related to the water utility work included connections to the existing watermain (CO1-8 of $4,212.00) and fittings (CO1-9 of $5,070.00). Both quantity overruns were a result of errors in preliminary quantities. The items outlined above will be funded by the Water Utility Fund. A sewer service leak was detected during the installation of a new water service on Fillmore Street. Given the failing service was discovered during the convenience of construction and it shared the same trench with the water service, the Contractor was directed to make the repair. Delaying the sewer repair would have required the Contractor to stop work and cause an increase to the overall project budget. The repair consisted of two couplings and a new section of pipe to replace the cracked section. Item CO1-3 was $565.00 and will be paid by the Sanitary Sewer Fund. Insulation was required to be installed above portions of new watermain and services. These portions did not have adequate cover between the roadway and other utilities to prevent freezing during winter. The associated cost of$186.55 will be paid by the Water Utility Fund. Upon inspection of four catch basins during construction, it was revealed replacement and repair would be required to maintain our storm utility at its expected standard of service and operation. Three catch basins on Fillmore Street were rebuilt and a fourth replaced. Catch basin replacement/repair(CO1-5)accounted for$3,306.50 of the change order and will be funded by the Storm Utility Fund. 28 Small areas of the road base on Polk Street and Fillmore Street required additional subgrade repair prior to paving. Base materials under the existing roadway are unpredictable, and if found to be unsuitable for paving, correction by replacement with new Class V aggregate to support the new road is required. A portion of this project required this correction and CO1-7 accounted for $1,267.67 of the change order and will be funded by the Street Improvement Fund. Pavement restoration costs(CO1-7)increased due to larger trenches required for deeper tie-ins of new hydrants, valves, connections of the new pipe-bursted watermain and residential water services. Items affected by the increased quantities are pavement removal, pavement patching, associated subgrade replacement, and bituminous asphalt. The increase of $28,900.00 will be funded by the Street Improvement Fund. City staff directed all changes above as necessary to fulfill our project goals and meeting our standards. All project fund sources remain within the project budget. We reviewed the qualifying items that increased as a result of the change order prior to performing the final special assessment calculations. Please note the final assessments to be presented October 11th, which include applicable costs under this change order, are nearly$300.00 less than the preliminary assessment given last fall. Staff is recommending that the City Council move to approve Change Order No. 1 for the 2017 Street Project ST2017-01 to Northwest Asphalt,Inc.in the amount of$53,137.17. If approved, the contract amount shall be increased from $809,277.39 to$862,414.56. NRS/nrs Attachment 29 C1h'� Fridley Public Works Department Streets•Parks•Water•Sewer• Stormwater•Fleet•Facilities•Engineering 25-Sep-17 Northwest Asphalt,Inc. 1451 Stagecoach Road Shakopee,MN 55379 SUBJECT:Change Order No.1(FINAL)2017 Street Rehabilitation Project-PROJECT NO.ST2017-01 You are hereby ordered,authorized,and instructed to modify your contract for the above referenced project by including the following items: ITEM NO. DESCRIPTION UNITS QUANTITY UNIT PRICE COST CO1-1 Fire Hydrant Extensions for Extra Depth LS 1 _$ 3,675.95 $ 3,675.95 CO1-2 6"PVC Watermain IF 162 $ 36.75 $ 5,953.50 CO1-3 Sanitary Sewer Service Repair LS 1 $ 565.00 $ 565.00 CO1-4 Insulation SY 5.33 $ 35.00 $ 186.55 C01-5 Storm Structure Replacement/Repair LS 1 s $ 3,306.50 $ 3,306.50 C01-6 Subgrade Corrections LS 1 $ 1,267.67 $ 1,267.67 CO1-7 Pavement Restoration LS 1 $ 28,900.00 $ 28,900.00 C01-8 Connect to Existing Water EA 2 $ 2,106.00 $ 4,212.00 CO1-9 Fittings LBS 780 $ 6.50 $ 5,070.00 CHANGE ORDER NO.1 TOTAL= $ 53,137.17 Original Contract Amount: $ 809,277.39 Prior Change Orders Approved: $ - 0.0%of Original Contract Amount This Change Order: $ 53,137.17 6.6%of Original Contract Amount Proposed Contract Amount: $ 862,414.56 Submitted and approved by James Kosluchar,Director of Public Works,on the 25th Day of September,2017 James P.Kosluchar,Director of Public Works Approved and accepted this th day of 2017 by Northwest Asphalt,Inc. Northwest Asphalt,Inc. Approved and accepted this_th day of ,2017 by the City of Fridley Scott Lund,Mayor Walter T.Wysopal,City Manager Page 1of1 30 So AGENDA ITEM Fridley COUNCIL MEETING OF SEPTEMBER 25, 2017 CLAIMS CLAIMS 1709 (ACH PCard) 178076 - 178234 31 O O O S O O O O 0 N 0N W nNI nv18 8 N N WV? LnOs co OpppPN1 N1 N N ONdNNm p np 8 0 O \ E N N 41 ti U1 N 00 00 N N vl H O1 01 a WT M N N Ni c ui T 1.11 N N N ^ LA Z N M v 0 0 ti al 'p 1 0 o CDC To o m io 'm 0 0 0 0 " " 9 V 2 z 0 Z 4- 42 442 12 Z W '1.� C co NI O {/N{/�� 0 O cc W Q Q O W Q 0 0 r = d 0 Z ? Z g Z 140) 6 0 Tar o u a g f 0 c E z° c Z U `-1 ace u o .� Q , Q ag 0 a _� op O a) Q O N�+ L W Z v 0 0 W V d ((`0 O Z § .,) Q Ci V M iiQLL }t6 c c c c c t. 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C 0 u u V 'Er a d C 0 O v 01 N N m N �D 4 COCO001 0 .-1 M N ~V 10 Q In N 1.0 O O O N N N N d N H N l0 N N N 1-1 N N N 0 0. 0 v 0 a o (0 (0 0 `0 (0 N m g umi �� c 'o m V N h ..1 E o V N Ol 59 r , AGENDA ITEM 0 °t CITY COUNCIL MEETING OF Fridley SEPTEMBER 25, 2017 DATE: September 21,2017 TO: Walter T.Wysopal, City Manager FROM: Scott Hickok,Community Development Director Julie Jones,Planning Manager Stacy Stromberg,Planner SUBJECT: First Reading of an Ordinance for Modification to Code Section 205.30.10, Telecommunications Introduction In 1996,the Federal Government enacted the federal telecommunications act was enacted.The act set boundaries for what cities could and could not do in terms of regulating telecommunications across the country. The City of Fridley reacted by creating a very comprehensive telecommunications overlay ordinance whereby we followed the federal requirements while selecting where the towers would be permitted to be placed and by what standard.The 1997 Fridley overlay has for the most part stood the test of time. There have been inquiries about whether under certain conditions a 150'tall tower might be permitted,rather than a maximum 125'height tower. Staff has analyzed this question and provided a recommendation of approval to be considered in certain cases. Background Code Section 205.30.10,Tower Height states that the tower height shall be measured from the average adjoining grade to the highest point of construction of any tower or wireless telecommunications facility. Towers are exempt from height restrictions of the districts where located.Towers shall be permitted to a height of 125'.The next Code section following 205.10 requires stealth design so that the tower to the extent it can will blend with the surrounding elements. In Fridley there are enormous above ground power structures,Railroad signal structures and other elements, some of which exceed the height of 125,many 180'or higher. In keeping with the stealth requirements,which exist in the Code. By allowing an additional height in areas where other taller structures exist,the stealth intent can be met if a tower is no greater than 250'away from the taller structure.Also by doing this greater co-location can occur and many carriers can be on one tower as opposed to having the need for another tower elsewhere. In reviewing tower height limits in other communities, it is clear city's vary across the board with what they allow. Several cities do allow towers of 150'or more under specific circumstances.Under strict circumstances Fridley staff concurs with a limit of 150' 60 Planning Commission Recommendation The Planning Commission reviewed this item at their August 16,2017,regular meeting. After a brief discussion the Commission unanimously recommended approval of the ordinance amendment as proposed. No comments from the public were received regarding this item,though a public hearing notice was published and appeared on August 4th and August 18th,2017. Council Held Public Hearing The City Council held its Public Hearing regarding this amendment on this item on September 11,2017. After a brief Council discussion and d no comments from the public,� Council closed the public hearing. Recommendation. Staff recommends approval of the ordinance as amended and attached herein. 61 ORDINANCE NO. AN ORDINANCE TO AMEND THE FRIDLEY CITY CODE CHAPTER 205.30 0-5 TELECOMMUNICATIONS TOWERS AND FACILITIES DISTRICT,TO ALLOW A TELCOOMMINCATIONS TOWER TO A 150 FOOT HEIGHT PROVIDED CONDITIONS CAN BE MET TO BLEND INTO THE SURROUNDING ENVIRONMENT. The Fridley City Council hereby finds after review, examination and recommendation of staff that Chapter 205.30 related to be hereby amended and ordains as follows: Chapter 205.30.11 is hereby amended as follows: 205.30.11. TOWER HEIGHT Tower height shall be measured from the average adjoining grade to the highest point of construction of any tower or wireless telecommunications facilities. Towers are exempt from the maximum height restrictions of the districts where located. Towers shall be permitted to a height of one hundred twenty-five (125) feet. An additional 25' of tower height shall be permitted for a total height of one hundred fifty (150) feet, If all of the following criteria can be met: A. The tower is located within two hundred fifty(250)feet of any of the following structures that exceed the height of one hundred and fifty (150)feet. These structures include: buildings, power lines, and train/rail yard fixtures such as light fixtures, B. Tower can meet or exceed any local, State, of Federal regulations relative to tower fall distance. C. All permits required to replace or expand an existing tower be reviewed and approved by the City prior to alteration. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS DAY OF 20. Scott J. Lund, Mayor ATTEST: Debra A. Skogen, City Clerk Public Hearing: September 11,2017 First Reading: September 25, 2017 Second Reading: Publication: 62 fiC AGENDA ITEM .! CITY COUNCIL MEETING OF ridley SEPTEMBER 25, 2017 To: Wally Wysopal,City Manage From: Deborah Dahl,Human Resources Director Brian Weierke,Public Safety Director Date: Sept.21,2017 Re: CONTRACT WITH POLICE PATROL We are pleased and proud to announce a three-year tentative agreement has been reached between the City of Fridley and the Police Patrol Unit bargaining unit(L.E.L.S. Local #119) for the 2017, 2018 and 2019 calendar years. The unit has taken a vote and have approved the tentative agreement, which is attached for your review and final Council approval at the Sept. 25, 2017 Council meeting. The terms of the agreement are summarized below: SUMMARY OF CHANGES: 1. Article 35 - Duration (Three years - 2017, 2018 and 2019) 2. Article 17—Insurance Employees in this bargaining unit will receive the same insurance benefit package as all other City employees, which includes the health, dental and life insurance and alternatives (cash option or benefit leave). Having the same benefit package across the board has been a long- standing pattern and valued practice at Fridley, which is unique to our City and difficult to important to defend to keep fairness between all groups. 3. Article 22—Wages The biggest challenge in negotiations has been in establishing a list of cities which compare to Fridley in order to determine what the market is. It was agreed that our Patrol Officers trail behind the market comparable cities and a market adjustment was warranted. Both parties agreed to a 2.5%general increase or COLA for 1/1/2017, a general increase of 2.75% in addition to a 1%market adjustment on 1/1/2018, as well as a 3%general increase on 2019 with a .5%market adjustment. The agreements were similar to the rates agreed upon with the other two unions, with the exception of the 1%market adjustment for patrol in 2018 and a .5%market adjustment in 2019. 63 4. Article 26—Holidays Both parties agreed to increase the number of City-paid holidays from eleven(11)to twelve (12). Currently all groups have eleven(11) City-paid holidays, which are counted as eight(8) hour days. Both parties agreed that this would become effective for 2017 and that the City would designate the holiday each year going forward. The City's research showed the cities we identify as peer cities provide 12 paid holidays per year. 5. Article 31 —Compensatory Time Both parties agreed to increase the compensatory time (otherwise known as comp time) from 36 hours up to 40 hours. Employees are allowed to use compensatory time in lieu of overtime pay but it cannot exceed 40 hours or be carried over beyond Dec. 31. 6. Article 32—Specialty Pay for Special Units The union already receives Specialty Pay for certain assignments, such as Detectives, School Resource Officers, Rental Housing Officer and Drug Task Force Investigators. The Police Department has added one additional position to this area designated as the Special Operations Unit (due to retirement of Special Projects Coordinator). ESTIMATED COSTS: The costs for the proposed contract for 2017-2019 (for 29 members) are estimated below. Item 2017 2018 2019 Wages (base wages, includes PERA, taxes 2,569,000 2,782,000 2,993,700 and applicable step increase Overtime 221,700 230,100 238,200 12th Holiday (based on actuals if 100% 9,400 9,700 10,100 cashed out at end of year) Total 2,800,100 3,021,800 3,242,000 Holiday sellback(total cost to City with 82,400 85,900 88,600 anticipated 12th holiday added) Notes: 1) These projections do not include shift differential or court time. 2) Legislative changes are uncertain g in terms of additional employer contributions. Currently the PERA P&F Fund Employer Contributions is 16.2% and is likely to see increases (up to 1.5% over two years for 2017 and 2018), but it has not been approved by the time of this settlement. ACTION NEEDED: Staff is recommending that the City Council approve this tentative agreement and resolution at the Sept. 25, 2017 Council meeting. I will be in attendance at the pre-meeting and Council meeting to answer any questions you may have. DKD/BTW 64 RESOLUTION NO. 2017- A RESOLUTION APPROVING AND AUTHORIZING SIGNING AN AGREEMENT WITH POLICE OFFICERS OF THE CITY OF FRIDLEY POLICE DEPARTMENT FOR THE YEARS 2017,2018 & 2019 WHEREAS, the Law Enforcement Labor Services, Inc. as bargaining representative of the Police Officers of the City of Fridley, has presented to the City of Fridley various requests relating to the wages and working conditions of Police Officers of the Police Department of the City of Fridley; and WHEREAS, the City of Fridley has presented various requests to the Union and to the Employees relating to wages and working conditions of Police Officers of the Police Department of the City of Fridley; and WHEREAS, representatives of the Union and the City have met and negotiated regarding the requests of the Union and the City; and WHEREAS, representatives of the Union and the City have reached an agreement (Exhibit "A"), and WHEREAS, Union members voted in favor of adopting the agreement, NOW, THEREFORE, BE IT RESOLVED that the City Council hereby approves said Agreement and that the Mayor and the City Manager are hereby authorized to execute the attached Agreement (Exhibit "A") relating to wages and working conditions of Police Officers of the City of Fridley. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS DAY OF ,2017. SCOTT J. LUND - MAYOR ATTEST: DEBRA A. SKOGEN- CITY CLERK 65 EXHIBIT"A" LABOR AGREEMENT BETWEEN THE CITY OF FRIDLEY AND LAW ENFORCEMENT LABOR SERVICES, INC. LOCAL NO. 119 (Patrol Union) 2017, 2018 & 2019 j 1 66 LABOR AGREEMENT BETWEEN THE CITY OF FRIDLEY AND LAW ENFORCEMENT LABOR SERVICES, INC. LOCAL NO. 119 2017, 2018 & 2019 TABLE OF CONTENTS ARTICLE PAGE 1. Purpose of Agreement 1 2. Recognition 1 3. Definitions 1 4. Employer Security 3 5. Employer Authority 3 6. Union Security 3 7. Employee Rights - Grievance Procedure 4 8. Savings Clause 7 9. Seniority 7 10. Discipline 8 11. Constitutional Protection 9 12. Work Schedules 9 13. Overtime 9 14. Court Time 10 ii 67 15. Call Back Time 10 16. Working Out of Classification 11 17. Insurance 11 18. Standby Pay 13 19. Uniforms 13 20. P.O.S.T. Training 13 21. Longevity and Educational Incentive 14 22. Wage Rates 15 23. Legal Defense 16 24. Probationary Periods 16 25. Annual Leave 16 26. Holidays 18 27. Short-term Disability 19 28. Bereavement Leave Pay 20 29. Jury Pay 20 30. Compensatory Time 20 31. Employee Education Program 20 32. Pay for Investigators or School Resource Officer 21 33. BMC Case No. 85-PN-486-A. Issue 8 22 34. Waiver 22 II 35. Duration 22 in 68 LABOR AGREEMENT BETWEEN THE CITY OF FRIDLEY AND LAW ENFORCEMENT LABOR SERVICES, INC. LOCAL NO. 119 Article 1. Purpose of Agreement This Agreement is entered into between the City of Fridley, hereinafter called the Employer, and Law Enforcement Labor Services, Inc., hereinafter called the Union. It is the intent and purpose of this Agreement to: 1.1 Establish procedures for the resolution of disputes concerning this Agreement's interpretation and/or application; and 1.2 Place in written form the parties' agreement upon terms and conditions of employment for the duration of this Agreement. Article 2. Recognition 2.1 The Employer recognizes the Union as the exclusive representative, under Minnesota Statutes, Section 179A.03, subdivision 8, for all police personnel in the following job classifications: 1. Police Officer 2.2 In the event the Employer and the Union are unable to agree as to the inclusion or exclusion of a new or modified job class, the issue shall a 1 be submitted to the Bureau of Mediation Services for determination. Article 3. Definitions 3.1 Union Law Enforcement Labor Services, Inc. 1 1 69 3.2 Union Member A member of the Law Enforcement Labor Services, Inc. 3.3 Employee A member of the exclusively recognized bargaining unit. 3.4 Department The Fridley Police Department. 3.5 Employer The City of Fridley. 3.6 Chief The Public Safety Director of the Fridley Police Department. 3.7 Union Officer Officer elected or appointed by the Law Enforcement Labor Services, Inc. 3.8 Investigator/Detective An Employee specifically assigned or classified by the Employer to the job classification and/or job position of Investigator/Detective. 3.9 Overtime Work performed at the express authorization of the Employer in excess of the Employee's scheduled shift. 3.10 Scheduled Shift A consecutive work period, including rest breaks and a lunch break. 3.11 Rest Breaks Periods during the scheduled shift during which the Employee remains on continual duty and is responsible for assigned duties. 2 70 3.12 Lunch Break A period during the scheduled shift during which the Employee remains on continual duty and is responsible for assigned duties. 3.13 Strike Concerted action in failing to report for duty, the willful absence from one's position, the stoppage of work, slow-down, or abstinence in whole or in part from the full, faithful; and proper performance of the duties of employment for the purposes of inducing, influencing or coercing a change in the conditions or compensation or the rights, privileges or obligations of employment. Article 4. Employer Security The Union agrees that during the life of this Agreement the Union will not cause, encourage, participate in or support any strike, slow-down or other interruption of or interference with the normal functions of the Employer. Article 5. Employer Authority 5.1 The Employer retains the full and unrestricted right to operate and manage all manpower, facilities, and equipment; to establish functions and programs; to set and amend budgets; to determine the utilization of technology; to establish and modify the organizational structure; to select, direct, and determine the number of personnel; to establish work schedules, and to perform any inherent managerial function not specifically limited by this Agreement. 5.2 Any term and condition of employment not specifically established or modified by this Agreement shall remain solely within the discretion of the Employer to modify, establish, or eliminate. Article 6. Union Security 6.1 The Employer shall deduct from the wages of Employees who authorize such a deduction in writing an amount necessary to cover monthly Union dues. Such monies shall be remitted as directed by the Union. 6.2 The Union may designate Employees from the bargaining unit to act as a steward and an alternate and shall inform the Employer in writing of such choice and changes in the position of steward and/or alternate. 6.3 The Employer shall make space available on the Employee bulletin board for posting Union notice(s) and announcement(s). 3 71 6.4 The Union agrees to indemnify and hold the Employer harmless against any and all claims, suits, orders, or judgments brought or issued against the Employer as a result of any action taken or not taken by the Employer under the provisions of this Article. Article 7. Employee Rights— Grievance Procedure 7.1 Definition of a Grievance A grievance is defined as a dispute or disagreement as to the interpretation or application of the specific terms and conditions of this Agreement. 7.2 Union Representatives The Employer will recognize Representatives designated by the Union as the grievance representatives of the bargaining unit having the duties and responsibilities established by this Article. The Union shall notify the Employer in writing of the names of such Union Representatives and of their successors when so designated as provided by Section 6.2 of this Agreement. 7.3 Processing of Grievance It is recognized and accepted by the Union and the Employer that the processing of grievances as hereinafter provided is limited by the job duties and responsibilities of the Employees and shall therefore be accomplished during normal working hours only when consistent with such Employee duties and responsibilities. The aggrieved Employee and a Union Representative shall be allowed a reasonable amount of time without loss in pay when a grievance is investigated and presented to the Employer during normal working hours provided that the Employee and the Union Representative have notified and received the approval of the designated supervisor who has determined that such absence is reasonable and would not be detrimental to the work programs of the Employer. 7.4 Procedure Grievances, as defined by Section 7.1, shall be resolved in conformance with the following procedure: Step 1 An Employee claiming a violation concerning the interpretation or application of this Agreement shall, within twenty-one (21) calendar days after such alleged violation has occurred, present such grievance to the Employee's supervisor as designated by the Employer. The Employer-designated 4 72 representative will discuss and give an answer to such Step 1 grievance within ten (10) calendar days after receipt. A grievance not resolved in Step 1 and appealed to Step 2, shall be placed in writing setting forth the nature of the grievance, the facts on which it is based; the provision or provisions of the Agreement allegedly violated; the remedy requested; and shall be, appealed to Step 2 within ten (10) calendar days after the Employer-designated representative's final answer to Step 1. Any grievance not appealed in writing to Step 2 by the Union within ten (10) calendar days shall be considered waived. Step 2 If appealed, the written grievance shall be presented by the Union and discussed with the Employer-designated Step 2 representative. The Employer- designated representative shall give the Union the Employer's answer in writing within ten (10) calendar days after receipt of such Step 2 grievance. A grievance not resolved in Step 2 may be appealed to Step 3 within ten (10) calendar days following the Employer-designated representative's final answer in Step 2. Any grievance not appealed in writing to Step 3 by the Union within ten (10) calendar days shall be considered waived. Step 2a If the grievance is not resolved at Step 2 of the grievance procedure, the parties, by mutual agreement, may submit the matter to mediation with the Bureau of Mediation Services. Submitting the grievance to mediation preserves timeliness s for Step 3 of the grievance procedure. Any grievance not appealed in writing to Step 3 by the Union within ten (10) calendar days of mediation shall be considered waived. Step 3 A grievance unresolved in Step 2 or Step 2a and appealed to Step 3 by the Union shall be submitted to arbitration subject to the provisions of the Public Employment Labor Relations Act of 1971, as amended. The selection of an arbitrator shall be made in accordance with the "Rules Governing the Arbitration of Grievances" as established by the Bureau of Mediation Services. 7.5 Arbitrator's Authority a. The arbitrator shall have no right to amend, modify, nullify, ignore, add to, or subtract from the terms and conditions of this Agreement. The arbitrator shall consider and decide only the specific issue(s) submitted in writing by the Employer and the Union, and shall have no authority to make a decision on any other issue not so submitted. 5 73 b. The arbitrator shall be without power to make decisions contrary to, or inconsistent with, or modifying or varying in any way to application of laws, rules, or regulations having the force and effect of law. The arbitrator's decision shall be submitted in writing within thirty (30) days following close of the hearing or the submission of briefs by the parties, whichever be later, unless the parties agree to an extension. The decision shall be binding on both the Employer and the Union and shall be based solely on the arbitrator's interpretation or application of the express terms of this Agreement and to the facts of the grievance presented. c. The fees and expenses for the arbitrator's services and proceedings shall be borne equally by the Employer and the Union provided that each party shall be responsible for compensating its own representatives and witnesses. If either party desires a verbatim record of the proceedings, it may cause such a record to be made, providing it pays for the record. If both parties desire a verbatim record of the proceedings the cost shall be shared equally. 7.6 Waiver If a grievance is not presented within the time limits set forth above, it shall be considered "waived." If a grievance is not appealed to the next step within the specified time limit or any agreed extension thereof, it shall be considered settled on the basis of the Employer's last answer. If the Employer does not answer a grievance or an appeal thereof within the specified time limits, the Union may elect to treat the grievance as denied at that step and immediately appeal the grievance to the next step. The time limit in each step may be extended by mutual written agreement of the Employer and the Union in each step. 7.7 Choice of Remedy If, as a result of the written Employer response in Step 2 or 2a, the grievance remains unresolved, and if the grievance involves the suspension, demotion or discharge of an Employee who has completed the required probationary period, the grievance may be appealed either to Step 3 of Article 7 or to another procedure such as Veteran's Preference or Fair Employment. If appealed to any procedure other than Step 3 of this Article, the grievance is not subject to the arbitration procedure as provided in Step 3 of Article 7. The aggrieved Employee shall indicate in writing which procedure is to be utilized - Step 3 of Article 7 or an alternate procedure - and shall sign a statement to the effect that the choice of the alternate procedure precludes the aggrieved Employee from making a subsequent appeal through Step 3 of Article 7. 6 74 Except with respect to statutes under jurisdiction of the United States Equal Opportunity Commission, an employee pursuing a statutory remedy is not precluded from also pursuing an appeal under this grievance procedure. If a court of competent jurisdiction rules contrary to the ruling in EEOC v. Board of Governors of State Colleges and Universities, 957 F.2d 424 (7th Cir.), cert. denied, 506 U.S. 906, 113 S.Ct. 299(1992), or if Board of Governors is judicially or legislatively overruled, this paragraph of this Section shall be null and void. Article 8. Savings Clause This Agreement is subject to the laws of the United States, the State of Minnesota and the City of Fridley. In the event any provision of this Agreement shall be held to be contrary to law by a court of competent jurisdiction from whose final judgment or decree no appeal has been taken within the time provided, such provisions shall be voided. All other provisions of this Agreement shall continue in full force and effect. The voided provision may be renegotiated at the written request of either party. Article 9. Seniority 9.1 Seniority shall be determined by the Employee's length of continuous employment with the Police Department and posted in an appropriate location. Seniority rosters may be maintained by the Chief on the basis of time in grade and time within specific classifications. 9.2 During the probationary period, a newly hired or rehired Employee may be discharged at the sole direction of the Employer. During the probationary period a promoted or reassigned Employee may be replaced in his/her previous position at the sole discretion of the Employer. 9.3 A reduction of work force will be accomplished on the basis of seniority. Employees shall be recalled from layoff on the basis of seniority. An Employee on layoff shall have an opportunity to return to work within two years (2) of the time of his/her layoff before any new Employee is hired. 9.4 Senior Employees will be given preference with regard to transfer, job classification assignments and promotions when the job-relevant qualifications of Employees are equal. 9.5 Senior qualified Employees shall be given shift assignments preference after eighteen (18) months of continuous full-time employment. 7 75 9.6 One continuous scheduled annual leave period shall be selected on the basis of seniority until March 1st of each calendar year. After March 1st, scheduled annual leave shall be on a first-come, first-served basis. 9.7 Employees shall lose their seniority for the following reasons: a. Discharge, if not reversed; b. Resignation; c. Unexcused failure to return to work after expiration of a vacation or formal leave of absence. Events beyond the control of the Employee, which prevent the Employee from returning to work will not cause loss of seniority; d. Retirement. Article 10. Discipline 10.1 The Employer will discipline Employees for just cause only. Discipline will be in one or more of the following forms: a. oral reprimand; b. written reprimand; c. suspension; d. demotion; or e. discharge. 10.2 Suspensions, demotions and discharges will be in written form. 10.3 Written reprimands, notices of suspension, and notices of discharge which are to become part of an Employee's personnel file, shall be read and acknowledged by signature of the Employee. Employees and the Union will receive a copy of such reprimands and/or notices. 10.4 Employees may examine their own individual personnel files at reasonable times under the direct supervision of the Employer. 10.5 Discharges will be preceded by suspension without pay for forty (40) regularly scheduled working hours unless otherwise required by law. 10.6 Employees will not be questioned concerning an investigation of disciplinary action unless the Employee has been given an opportunity to have a Union representative present at such questioning. 8 76 10.7 Grievances relating to this Article shall be initiated by the Union in Step 2 of the grievance procedure under Article 7. Article 11. Constitutional Protection Employees shall have the rights granted to all citizens by the United States and Minnesota State Constitutions. Article 12. Work Schedules 12.1 The normal work year is an average forty (40) hour work week for full-time Employees to be accounted for by each Employee through: a. hours worked on assigned shifts; b. holidays; c. assigned training; e. authorized leave time. 12.2 Nothing contained in this or any other Article shall be interpreted to be a guarantee of a minimum or maximum number of hours the Employer may assign Employees. Article 13. Overtime 13.1 Employees will be compensated at one and one-half (1-1/2) times the Employee's regular base pay rate for hours worked in excess of the Employee's regularly scheduled shift. Changes of shifts do not qualify an Employee for overtime under this Article. 13.2 Overtime will be distributed as equally as practicable. 13.3 Overtime refused by Employees will for record purposes under Article 13.2 be considered as unpaid overtime worked. 13.4 For the purpose of computing overtime compensation, overtime hours worked shall not be pyramided, compounded or paid twice for the same hours worked. 13.5 Overtime will be calculated to the nearest fifteen (15) minutes. 13.6 Employees have the obligation to work overtime or call backs if requested by the Employer unless unusual circumstances prevent the Employee from so working. 9 77 Article 14. Court Time 14.1 An Employee who is required to appear in court during his/her scheduled off- duty time shall receive a minimum of three (3) hours pay at one and one-half (1.5) times the Employee's base pay rate. The City may assign the Employee to stand by pending the notification of their appearance being required. Unless otherwise specified by the City or the prosecutor, this period of standby shall commence three (3) hours prior to the time scheduled for the Employee's appearance in court. The Employee will be compensated for three (3) hours at their base rate as provided in Article 18 for each day on standby. 14.2 If the court appearance is scheduled during the Employee's off time, and if the court appearance is cancelled, the Employee will be notified by the end of the business day (5:00 p.m.) preceding the court appearance. If notification of cancellation is not made by the end of the business day (5:00 p.m.) preceding the court appearance, the Employee will receive standby pay for three (3) hours at their base rate of pay. 14.3 The business day notice applies to all court cases for which the Employee receives notice resulting from their employment with the City. 14.4 Employees who are assigned to standby for a court appearance during their off- duty time, and who are then notified by the prosecuting attorney that they need to appear and who do appear in court shall receive a minimum of three (3) hours pay at one and one-half(1.5) times the Employee base rate of pay. Employees will not be paid both standby pay and for three (3) hours at one and one-half their base rate of pay. 14.5 Employees will be required to appear for the Court Trials/Traffic Court, for Contested Omnibus Hearings, for Implied Consent Hearings, and for any other court appearance where the City or the prosecuting attorney directs that Standby is not feasible. Article 15. Call Back Time 15.1 An Employee who is called to duty during the Employee's scheduled off-duty time shall receive a minimum of three (3) hours pay at one and one-half(1-1/2) times the Employee's base pay rate. An extension or early report to a regularly scheduled shift for duty does not qualify the Employee for the three (3) hour minimum. 15.2 An Employee who works extra-duty work (outside employment) during the Employee's scheduled off-duty time shall receive a minimum of two (2) hours pay at one and one-half(1 1/2) times the Employee's base pay rate. Extra-duty 10 78 hours worked on a holiday, as defined in Article 26, shall be compensated at two (2) times the Employee's base pay rate. Article 16. Working Out of Classification Employees assigned by the Employer to assume the full responsibilities and authority of a higher job classification shall receive the salary schedule of the higher classification for the duration of the assignment. Article 17. Insurance 17.1 For the calendar year 2017, for Employees who choose single coverage in the Base Plan, the Employer will contribute up to $739.88 per month per employee toward the single health insurance premium and $1,571.07 per month toward the dependent health insurance premium, or an amount equal to that provided to non-union employees, whichever is greater, in accordance with the Employer's Flexible Benefit Plan. For the calendar years of 2018 and 2019, for those Employees who choose coverage in the Base Plan, the Employer will contribute the same amount provided to non-union employees. If the 2018 and 2019 rates for the non-union employees are less, the 2017 contribution will remain in effect. 17.2 For the calendar year 2017, for Employees who choose the high deductible health plan and health reimbursement arrangement (HRA), the Employer will contribute $603.97 per month toward the single health insurance premium and $1,459.07 toward dependent health insurance premium, or an equal amount to that provided to non-union employees, whichever iseater, gr , in accordance with the Employer's Flexible Benefit Plan. For the calendar years of 2018 and 2019, for those Employees who choose coverage in the HRA Plan, the Employer will contribute the same amount provided to non-union employees. If the 2018 and 2019 rates for the non- union employees are less, the 2017 contribution will remain in effect. 17.3 For the calendar year 2017, for Employees who choose the high deductible health plan and health reimbursement arrangement (HRA), the Employer will contribute $100 per month toward the VEBA Trust Account, or an equal amount to that provided to non-union employees, whichever is greater, in accordance with the Employer's Flexible Benefit Plan For the calendar years of 2018 and 2019, for those Employees who choose coverage in the HRA Plan, the Employer will contribute the same amount provided to non-union employees in their HRA VEBA. If the 2018 & 2019 11 79 rates for the non-union employees are less, the 2017 contribution will remain in effect. 17.4 For the calendar year 2017, for Employees who choose the high deductible health plan and healthcare savings account (HSA), the Employer will contribute $570.17 per month toward single health insurance premium and $1,459.07 toward the dependent health insurance premium, or an equal amount to that provided to non-union employees, whichever is greater, in accordance with the Employer's Flexible Benefit Plan. For the calendar years of 2018 & 2019, for those Employees who choose coverage in the HSA Plan, the Employer will contribute the same amount provided to non-union employees in their HSA account. If the 2018 & 2019 rates for the non-union employees are less, the 2017 contribution will remain in effect. 17.5 For the calendar year 2017, for Employees who choose the high deductible health plan and healthcare savings account (H.S.A.), the Employer will contribute $100 per month toward the H.S.A. Account, or an equal amount to that provided to non-union employees, whichever is greater, in accordance with the Employer's Flexible Benefit Plan. For the calendar years of 2018 & 2019, for Employees who choose the high deductible health plan and healthcare savings account (H.S.A.), the Employer will contribute an equal amount toward the HSA as is provided to non-union employees, whichever is greater, in accordance with the Employer's Flexible Benefit Plan. 17.6 For the calendar year 2017, for Employees who choose dental coverage, the Employer will contribute up to $25 per month toward the dental insurance premium, or an amount equal to that provided to non-union employees, whichever is greater, in accordance with the Employer's Flexible Benefit Plan. For the calendar years of 2018 & 2019, for Employees who choose the dental coverage, the Employer will contribute an equal amount toward the dental insurance premium as is provided to non-union employees, whichever is greater, in accordance with the Employer's Flexible Benefit Plan. 17.7 The Employer will provide group term life insurance with a maximum of $25,000 per Employee and additional accidental death and disability insurance with a maximum of$25,000 per Employee (current cost is $2.88 per month), or an amount equal to that provided to non-union employees, whichever is greater, in accordance with the Employer's Flexible Benefit Plan. 12 80 17.8 For the calendar year 2017, in accordance with the Employer's Flexible Benefit Plan, Employees have the option during an open enrollment period or during approved qualified events to decline health or dental insurance coverage, provided they provide proof of coverage elsewhere. In lieu of electing health and dental benefits, Employees may elect the option of having ten (10) additional Benefit Leave Days or a monthly cash benefit of $476.77, or the amount equal to or greater than the amount provided to non-union employees. For the calendar years of 2018 & 2019, for Employees who choose to waive the health and dental programs and elect Benefit Leave Days or the monthly cash option, the Employer will contribute the same amount provided to non-union employees, whichever is greater, in accordance with the Employer's Flexible Benefit Plan. If the 2018 & 2019 amounts for the non-union employees are less, the 2014 amount will remain in effect. Benefit Leave days are required to be used within in the calendar year and may not be carried into the following year. Article 18. Standby Pay Employees required by the Employer to standby shall be paid for such standby time at the rate of one hour's pay for each hour on standby. Employees placed on standby shall remain able to respond within a reasonable time. Such reasonable time, if not otherwise specified at the time of assignment to standby, shall be one (1) hour to the police department, assigned court location, or other location designated by the City. Employees placed on standby shall remain available to be contacted by the Employer by normal means to include phone or wireless communication devices. Employees assigned to standby for court appearances shall be compensated for three (3) hours of pay for each day or portion of a day on standby. Article 19. Uniforms The Employer shall provide required uniform and equipment items. Article 20. P.O.S.T. Training 20.1 Employer shall assign training at Employer's expense for Police Officers to complete 48 hours of P.O.S.T. Board approved education during each three- year licensing period. 20.2 Employer shall pay the cost of maintaining P.O.S.T. licensure for all Employees required to maintain the license. 13 81 Article 21. Longevity and Educational Incentive Effective July 1, 1978, the following terms and conditions are effective, except that Employees hired after January 1, 1987, shall not be eligible for educational incentive. 21.1 After four (4) years of continuous employment each Employee shall choose to be paid three percent (3%) of the Employee's base rate or supplementary pay, based on educational credits as outlined in 21.6 of this Article. 21.2 After eight (8) years of continuous employment, each Employee shall choose to be paid supplementary pay of five percent (5%) of the Employee's base rate, or supplementary pay based on educational credits, as outlined 21.6 of this Article. 21.3 After twelve (12) years of continuous employment, each Employee shall choose to be paid supplementary pay of seven percent (7%) of the Employee's base rate, or supplementary pay based on educational credits, as outlined in 21.6 of this Article. 21.4 After sixteen (16) years of continuous employment, each Employee shall choose to be paid supplementary pay of nine percent (9%) of the Employee's base rate, or supplementary pay based on educational credits, as outlined in 21.6 of this Article. 21.5 Employees may choose supplementary pay either for length of service or for educational credits no more often than once every twelve (12) months. 21.6 Supplementary pay based on educational credits will be paid to Employees after twelve (12) months of continuous employment at the rate of: Educational credits stated in Percentage Pay terms of college quarter credits increment 45 - 89 3% 90 - 134 5% 135 - 179 7% 180 or more 9% Not all courses are to be eligible for credit. Courses receiving qualifying credits must be job-related. (Thus, a four-year degree is not automatically 180 credits - or two year certificate is not automatically 90 credits.) Job-related courses plus those formally required to enter such courses shall be counted. For example: If Principles of Psychology (8 credits) is required before taking Psychology of Police Work (3 credits), completion of those courses would yield a 14 82 total of eleven qualifying credits. C.E.U.'s (Continuing Education Units) in job- related seminars, short courses, institutes, etc. shall also be counted. The Employer shall determine which courses are job-related. Disputes are grievable based on the criteria outlined in the award of Minnesota Bureau of Mediation Services Case No. 78-PN-370-A. Article 22. Wage Rates 22.1 The following hourly wage rates will apply for 2017, 2018 & 2019 (amounts may be rounded to two decimal points): Step 1/1/2017 1/1/2018 1/1/2019 Start 23.78 24.68 25.55 6 mos. 25.57 26.54 27.47 1 Year 29.22 30.33 31.40 2 Year 32.64 33.87 35.06 3 Year 36.20 37.57 38.89 22.2 Employees classified or assigned by the Employer to the following job classifications or positions will receive five percent (5%) in addition to their regular wage rate: Investigative (Detective); School Resource Officer; Rental Housing Officer, Drug Task Force Investigator, and Special Operations Unit. 22.3 An Employee certified for and assigned to Field Training Officer (FTO) duties shall receive overtime pay equal to the overtime rate or compensatory time at time and one-half up to the limit in Article 30, in addition to any other regular overtime worked, for any single shift worked as Field Training Officer as indicated: Shift of 12 or more hours two (2) hours Shift of 8 to 11.9 hours one and one half(1-1/2) hours Shift of 4 to 7.9 hours one (1) hour 22.4 Employees who work between 11 p.m. and 7 a.m. shall be paid a shift differential for hours worked between those times, according to the following schedule: a. An additional $1.00 per hour will be paid for regular hours worked. b. An additional one and one-half(1 1/2) times the shift differential ($1.50 per hour) will be paid in addition to overtime compensation for hours worked in addition to a regularly scheduled shift, and for call back or 15 83 early report to a shift, for extra duty hours, or voluntary overtime shifts. c. An additional two (2) times the shift differential ($2.00 per hour)will be paid in addition to overtime pay for overtime hours worked on a holiday. d. Shift differential does not apply to any leave type taken for hours during those hours. Article 23. Legal Defense 23.1 Employees involved in litigation because of proven negligence, or non- observance of laws, or of a personal nature, may not receive legal defense by the municipality. 23.2 Any Employee who is charged with a traffic violation, ordinance violation or criminal offense arising from acts performed within the scope of his/her employment, when such act is performed in good faith and under the direct order of his/her supervisor, shall be reimbursed for attorney's fees and court costs actually incurred by such Employee in defending against such charge. 23.3 Employer will provide protection for all Employees against false arrest charges. Article 24. Probationary Periods All newly hired or rehired Employees will serve a twelve (12) month probationary period. Article 25. Annual Leave 25.1 Each Employee shall be entitled to annual leave away from employment with a . Employees shall II P Yaccrue annual leave based on an average eight (8) hour work day. Annual leave may be used for scheduled or emergency absences from employment. Annual leave pay shall be computed at the regular rate of pay to which such an Employee is entitled; provided, however, that the amount of any compensation shall be reduced by the payment received by the Employee from workers' compensation insurance, Public Employees Retirement Association disability insurance, or Social Security disability insurance. An Employee's accumulation of annual leave will be reduced only by the amount of annual leave for which the Employee received compensation. 16 84 25.2 Seniority shall apply on scheduled annual leave up to March 1st of each year. After March 1st, scheduled annual leave shall be on a first-come, first-served basis. 25.3 A beginning Employee shall accrue annual leave at the rate of eighteen (18) days (144 hours) per year for the first seven (7) years (84 successive months). An Employee who has worked seven (7) years (84 consecutive months) shall accrue annual leave at the rate of twenty-four (24) days (192 hours) per year, beginning with the eighty-fifth (85th) month of successive employment. An Employee who has worked fifteen (15) years (180 successive months) shall accrue annual leave at the rate of twenty-six (26) days (208 hours) per year, beginning with the one hundred eighty-first (181st) month of successive employment. Effective 1/1/2014, an Employee who has worked twenty (20) years (240 consecutive months) shall accrue annual leave at the rate of twenty-eight (28) days (224 hours) per year, beginning with the two hundred forty first (241) month of successive employment. These rates are based on a forty-hour (40) regular workweek. The actual amount credited to an Employee in any given pay period shall be prorated according to the actual number of regular hours worked during that pay period. Hours worked on overtime, callback, or standby shall not enter into the calculation of the accrual of annual leave. 25.4 For an Employee hired on or after January 1, 1984: Effective 1/1/2014, the maximum total accumulation of annual leave at the end of any givenear shall be forty40 Y ( ) days (320 hours). 25.5 For an Employee hired before January 1, 1984: Vacation accrued but unused as of December 31, 1983, shall be converted by annual leave at the rate of one (1) day of annual leave for one (1) day of vacation. Accrued but unused sick leave as of December 31, 1983, shall be converted to annual leave according to the following schedule: a. 1st 45 days @ 1 day of annual leave for 1 day of sick leave b. 2nd 45 days @ 1 day of annual leave for 2 days of sick leave c. Remainder @ 1 day of annual leave for 3 days of sick leave In lieu of severance pay, one hour of annual leave shall be credited for each full month of employment up to a maximum of two hundred forty (240) hours. 17 85 The total amount of annual leave credited to the Employee's balance as of January 1, 1984, shall be equal to accrued but unused vacation plus accrued but unused sick leave converted according to the formula above plus the amount in lieu of severance pay. If upon conversion to the annual leave plan an Employee's accumulation of annual leave exceeds thirty (35) days (280 hours), that amount shall be the maximum total accumulation (cap) for that Employee at the end of any subsequent year. 25.6 An Employee who wishes to take advantage of the catch-up provision for the City's 457 Deferred Compensation Plan may exchange as many days as desired for cash under the following conditions: a. The Employee's cap is reduced by the number of days exchanged. b. In no case may the cap be reduced below forty (40) days (320 hours). c. An Employee taking advantage of this provision must file the appropriate forms with the payroll division of the Employer. 25.7 Upon separation from employment with the City, an Employee will be paid one (1) day's salary for each day of accrued annual leave remaining in the Employee's balance. Article 26. Holidays 26.1 Employees will accrue eight (8) hours of holiday leave for each of twelve (12) holidays in a calendar year. 26.2 In addition to the twelve holidays, Employees assigned to the Patrol Division shall be paid at one and one-half (1- Y2) times their base rate of pay for all hours worked on the actual holiday between the hours of midnight and midnight. For any overtime hours worked on a holiday, Employees will be paid two (2) times their base rate of pay. 26.3 Employees, with approval, may use accumulated holiday leave time in any hourly increment the Employee chooses. 26.4 Once a year, Employees will be paid for any unused holiday hours remaining after Dec. 31st of each year. Payment will be made at the Employee's hourly rate in effect on Dec. 31st of the year in which the holiday hours were accrued. 26.5 The Employer will designate the holiday schedule and communicate to Employees in advance. 18 86 Article 27. Short Term Disability 27.1 Calculation of the short-term disability benefit shall be based on an average eight (8) hour workday. Each Employee who has successfully completed the Employee's probationary period shall be eligible for the short-term disability benefit. Such an Employee shall be entitled to full pay commencing on the twenty-first (21st) consecutive working day on which the Employee is absent (after absence for 160 consecutive regularly scheduled working hours) due to a physician-certified illness or injury off the job, and continuing until the Employee returns to work able to carry out the full duties and responsibilities of the Employee's position or through the one hundred tenth (110th) working day (880th regularly scheduled working hour) of absence, whichever occurs first. Such an Employee shall also be entitled to full pay commencing on the eleventh (11th) consecutive working day on which the Employee is absent (after absence for eighty consecutive regularly scheduled working hours) due to a physician-certified illness or injury on the job and continuing until the Employee returns to work able to carry out the duties and responsibilities of the Employee's position or through the one hundredth (100th) working day (800th regularly scheduled working hour) of absence, whichever occurs first. The amount of any compensation for the short-term disability benefit shall be reduced by any payment received by the disabled Employee from workers' compensation insurance, Public Employees Retirement Association disability insurance, or Social Security disability insurance. Payment of short-term disability benefit by the City to an Employee shall not exceed ninety (90) working days (720 working hours) for any single illness or injury, regardless of the number and spacing of episodes. The annual leave balance of an Employee receiving short-term disability benefit shall not be reduced, nor shall such Employee accrue annual leave during that period. 27.2 Before any short-term disability payments are made by the Employer to an Employee, the Employer may request and is entitled to receive a certificate signed by a competent physician or other medical attendant certifying to the fact that the entire absence was, in fact, due to the illness or injury and not otherwise. The Employer also reserves the right to have an examination made at any time of any Employee claiming payment under the short-term disability benefit. Such examination may be made on behalf of the Employer by any competent person designated by the Employer when the Employer deems the same to be reasonably necessary to verify the illness or injury claimed. 27.3 If an Employee hired before January 1, 1984, has received payments under the injury-on-duty provisions of previous contracts, the number of days for which 19 87 i i payment was received will be deducted from the number of days of eligibility for coverage under short-term disability for that same injury. Article 28. Bereavement Leave 28.1 Bereavement leave will be granted to full-time Employees up to a maximum of twenty-four (24) scheduled hours. Bereavement Leave is granted in case of deaths occurring in the immediate family. For this purpose, immediate family is considered to include: spouse, children, parents, brothers, sisters, grandparents, grandchildren, parents in-laws, brothers in-law, and sisters in- law. 28.2 The City will allow union employees to follow current practices for non-union employees, which gives Employees an option to appeal directly to the City Manager for additional time off if extenuating circumstances prevail. Article 29. Jury Pay It shall be understood and agreed that the Employer shall pay all regular full- time Employees serving on any jury the difference in salary between jury pay and the Employee's regular salary or pay while in such service. Article 30. Compensatory Time Management reserves the right to approve compensatory time in lieu of overtime pay. Compensatory time shall not be accumulated in excess of forty (40) hours, and must be used within the calendar year in which it was accumulated as determined by the Employer. Article 31. Employee Education Program 31.1 The Employer will pay certain expenses for certain education courses based on the following criteria: a. The training course must have relevance to the Employee's present or anticipated career responsibilities; b. Attendance shall be at an institution approved by the Employer. The course must be approved by the Chief. c. Financial assistance will be extended only to courses offered by an accredited institution. This includes vocational schools, Minnesota School of Business, etc. 20 88 31.2 Programs Financial Policy Financial assistance not to exceed the amount of two thousand, nine hundred, twenty-five dollars ($2,925.00) per Employee per year will be extended to cover the cost of tuition, required books or educational materials, and required fees related to the course. Charges for student union membership, student health coverage, mileage, parking, and other charges for which the student receives some item or services other than actual instruction will not be paid. Upon ' successful completion of the course, an Employee will be required to present to the Chief a certification of satisfactory work. Satisfactory work is defined as follows: a. In courses issuing a letter grade, a C or above is required. b. In courses issuing a numerical grade, seventy percent (70%) or above is required. c. In courses not issuing a grade, a certification from the instructor that the student satisfactorily participated in the activities of the course is required. 31.3 If the Employee satisfactorily completes the course and provides the required documentation, the Employee will be reimbursed for 100% of the cost of the eligible costs (i.e. tuition, books, course fees, etc.) If the Employee fails to satisfactorily complete the course, the Employee will not be reimbursed for these costs. 31.4 The program will not reimburse the Employee for the hours the Employee spends in class, only for the tuition. 31.5 Expenses for which the Employee is compensated under some other educational or assistance program, scholarships, or programs such as the GI bill, will not be covered. 31.6 The Citywill not pay tuition or other costs for those courses, which are used to make the Employee eligible for additional salary. 31.7 The City will not reimburse the Employee for any course which is not completed and or any course which may be a duplicate or retaken. Article 32. Pay for Investigators, School Resource, Rental Housing Officers, Drug Task Force Investigators, and Special Operations Unit In addition to receivingthe five5 ( °/o ) percent per month differential pay, Employees assigned as Investigators, School Resource, Rental Housing Officers, Drug Task Force 21 89 Investigators and Special Operations Unit shall be eligible for the overtime provisions of the contract applicable to Police Officers. Article 33. BMC Case No. 85-PN-486-A, Issue 8 The Employer shall establish a minimum of two (2) months between each shift change in the rotation. Article 34. Waiver 34.1 Any and all prior agreements, resolutions, practices, policies, rules and regulations regarding terms and conditions of employment, to the extent inconsistent with the provisions of this Agreement, are hereby superseded. 34.2 The parties mutually acknowledge that during the negotiations, which resulted in this Agreement, each had the unlimited right and opportunity to make demands and proposals with respect to any term or condition of employment not removed by law from bargaining. All agreements and understandings arrived at by the parties are set forth in writing in this Agreement for the stipulated duration of this Agreement. The Employee and the Union each voluntarily and unqualifiedly waives the right to meet and negotiate regarding any and all terms and conditions of employment referred to or covered in this Agreement or with respect to any term or condition of employment not specifically referred to or covered by the Agreement, even though such terms or conditions may not have been within the knowledge or contemplation of either or both of the parties at the time this contract was negotiated or executed. Article 35. Duration This Agreement shall be effective as of the first day of Jan.1, 2017, and shall remain in full force and effect through the thirty-first day of December, 2019. In witness whereof, the parties hereto have executed this Agreement on this day of , 2017. 22 90 We hereby recommend approval of this agreement. FOR CITY OF FRIDLEY • Scott J. Lund, Mayor (Date) Walter T. Wysopal, City Manager (Date) Deborah K. Dahl, Human Resources Director (Date) Brian T. Weierke, Public Safety Director (Date) FOR LAW ENFORCEMENT LABOR SERVICES, INC. Andy Masterman, LELS Business Agent (Date) Bob Stevens, Steward (Date) Mark Mickelson, Steward (Date) John Kotchen, Steward (Date) { 23 91 fI AGENDA ITEM `��'f Fridley CITY COUNCIL MEETING OF ley SEPTEMBER 25, 2017 To: Wally Wysopal, City Manager From: Shelly Peterson, Finance Director Date: September 21, 2017 Re: Resolution Certifying the Proposed Tax Levy Requirements for 2018 In conformance with Chapter 275.065, Subd. 1, of the Minnesota Statutes, attached is a resolution certifying the proposed tax levy requirements to Anoka County. Chapter 275 requires the City to certify a proposed property tax levy to Anoka County on or before September 30. The Council must approve a final levy by 12/28/2017. The City's final levy can be lower than the proposed levy but it cannot be higher. Chapter 7 of the City Charter was recently modified • From a levy not to exceed the change in the % CPI from 2015 to 2016 • To a levy not to exceed 5% of the prior year's levy, but may increase an additional 3% with the vote of 4 members of the Council • This change is scheduled to become effective on November 2nd provided a petition is not submitted • A petition would need to be received no later than October 3`d • If the Charter is not successfully amended, the levy would be lowered and the budget reduced In anticipation of the modifications made to the City's charter, the 2018 proposed levy was developed with the new guidelines and reflects the levy necessary to support current operational expenditure assumptions. The proposed levy provides a balance General Fund budget with no new operational initiatives and does not require the use of reserves. Staff will continue to identify cost savings and review revenue projections for 2018. This levy will not provide the funding required to support the capital investments/replacements proposed for 2018, the use of reserves is planned for those funds. The annual financial impact to a residential home with an estimated market value of$186,500 is expected to be approximately $95 annually when compared to 2017. This is about 12.74% more than the prior year's City portion of their property taxes. These are preliminary projections as the County has not finalized TIF or Fiscal Disparities figures for taxes payable in 2018. 92 The make-up of the 2018 proposed levy is as follows: TAX LEVIES Percent 2016 2017 2018 Change General Fund $ 10,537,745 $ 10,537,745 $ 11,064,632 5.00% Information Tech Project 50,000 50,000 52,500 5.00% Springbrook Nature Ctr 350,724 350,724 368,260 5.00% Debt Service 1,262,366 3,183,782 3,322,521 4.36% Total Tax Levy $ 12,200,835 $ 14,122,251 $ 14,807,913 4.86% Although 2018 levy information is not available yet for metro area communities, staff has contacted several surrounding communities. Five cities responded with an average proposed operational levy increase of about 5.41% and the average total levy (including debt) at about 6.08%. Fridley's proposed general operations levy is 5% with a total proposed levy increase of 4.86%. It's important to note that all of the neighboring communities who responded to our request receive a benefit from Fiscal Disparities which lessons the impact of a tax increase on their property owners. In addition, four of the five who responded also have a gas and electric franchise fee providing additional revenue to support their operations. The final levy and budget are scheduled to be on the agenda for November 27th, at which time the public must be allowed to speak. Staff is recommending that the Council adopt the attached resolution to certify the proposed tax levy requirements for 2018. 93 RESOLUTION NO. 2017- A RESOLUTION CERTIFYING PROPOSED TAX LEVY REQUIREMENTS FOR 2018 TO THE COUNTY OF ANOKA WHEREAS, Chapter Seven, Section 7.02 of the Charter of the City of Fridley, grants the City the power to raise money by taxation pursuant to the laws of the State of Minnesota; and WHEREAS, Minnesota Statute Chapter 275, Section 065 requires the City to certify its proposed tax levy requirements to the County on or before September 30;and NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Fridley hereby certifies to the County of Anoka, State of Minnesota, the following tax to be levied in 2017 for collection in 2018: City of Fridley 2018 Proposed Tax Levy 2018 Levy General Fund $ 11,064,632 Springbrook Nature Center 368,260 I.T. Capital Equipment Fund 52,500 Bonded Indebtedness 3,322,521 Total Proposed Tax Levy $ 14,807,913 PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 25th DAY OF SEPTEMBER,2017. SCOTT J. LUND-MAYOR ATTEST: DEBRA A. SKOGEN - CITY CLERK 94 AGENDA ITEM Fr `` i CITY COUNCIL MEETING OF idley SEPTEMBER 25, 2017 To: Wally Wysopal, City Managei01 From: Shelly Peterson, Finance Director Date: September 21, 2017 Re: Resolution Adopting the 2018 Proposed General Fund Budget In conformance with Chapter 275.065, Subd. 1, of the Minnesota Statutes, attached is a resolution adopting the 2017 Proposed General Fund Budget. Chapter 275 requires the City to certify a proposed budget to Anoka County on or before September 30. The make-up of the 2018 proposed budget is as follows: 2018 Proposed % 2015 Actual 2016 Actual 2017 Budget Budget Change Revenue Taxes 10,474,192 10,589,954 10,612,800 11,115,900 5% Special Assessments 21,009 14,513 16,500 16,500 0% Licenses & Permits 1,267,534 1,150,954 1,006,000 1,004,400 0% Intergovernmental 972,658 1,262,432 1,645,300 1,820,600 11% Charges for Services 1,901,210 2,030,102 1,995,600 2,028,800 2% Fines 155,499 186,418 180,000 180,000 0% Miscellaneous 267,946 326,893 234,200 205,700 -12% Other(transfers) 569,600 532,900 452,600 452,600 0% 15,629,648 16,094,166 16,143,000 16,824,500 4% Expenditures Council 129,291 132,018 139,100 140,900 1% General Management 1,054,387 1,527,965 1,517,700 1,630,400 7% Finance 1,258,589 903,026 921,900 953,300 3% Police 5,783,102 5,793,615 6,276,700 6,525,000 4% Fire 1,405,354 1,439,218 1,496,200 1,572,000 5% Public Works 3,111,190 3,136,587 3,430,600 3,578,700 4% Recreation 880,439 891,727 951,600 976,100 3% Community Dev 1,240,457 1,122,148 1,214,200 1,249,400 3% Non-departmental 140,514 920,376 195,000 198,700 2% 15,003,323 15,866,680 16,143,000 16,824,500 4% The final levy and budget are scheduled to be on the agenda for November 27, at which time the public must be allowed to speak. Staff is recommending that the Council adopt the attached resolution adopting the 2018 Proposed General Fund budget. 95 I 1 RESOLUTION NO. 2017- A RESOLUTION ADOPTING THE 2018 PROPOSED GENERAL FUND BUDGET WHEREAS, Chapter 7, Section 7.04 of the Charter of the City of Fridley, provides that the City Manager shall prepare an annual budget: and WHEREAS, the City Manager has prepared such document and the City Council has met for the purposes of discussing the budget; and WHEREAS,the City Council will hold a public meeting on November 27,2017 before determining a final budget; and NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Fridley that the following proposed budget be adopted and approved: 2018 Proposed General Fund Budget Revenue Expenditures Taxes 11,115,900 Council 140,900 Special Assessments 16,500 General Management 1,630,400 Licenses & Permits 1,004,400 Finance 953,300 Intergovernmental 1,820,600 Police 6,525,000 Charges for Services 2,028,800 Fire 1,572,000 Fines 180,000 Public Works 3,578,700 Miscellaneous 205,700 Recreation 976,100 Other(transfers) 452,600 Community Dev 1,249,400 Non-departmental 198,700 16,824,500 16,824,500 PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 25th DAY OF SEPTEMBER,2017. SCOTT J. LUND-MAYOR ATTEST: DEBRA A. SKOGEN - CITY CLERK 96 AGENDA ITEM OF SEPTEMBER 25, 2017 Tri, JJe,jCITY COUNCIL ME Frid y TO: Mayor and City Council FROM: Walter T. Wysopal,City Manage DATE: September 22, 3017 RE: Prosecuting Attorney Services Background The City contracts for prosecutorial services with the Carl Newquist law firm. The terms of this agreement expire at the end of the year. The agreement may be extended or terminated with 60 days' notice. This long-standing arrangement came under review as Carl advised the City in July that he intended to retire from practice at the end of the year. Furthermore, he requested to know the City's thoughts about renewal as continuing the lease of his office space needed to be renewed by the end of the year. City staff used this announcement as an opportunity to review options for receiving prosecutorial services. No specific incident with regard to performance by the firm prompted the review by City staff. However,the review did reveal the City's costs of prosecution were significantly higher than comparable cities. Staff reviewed several options which included negotiating with Carl, going out for Requests for Proposal, creating an in-house prosecutorial department, and collaborating with an existing city. The Request for Proposal option requires a 6-month lead time. Therefore, it was not given consideration. In Carl's letter of July 17, 2017, he indicated the terms of continuing with his firm. As such,they were used as a baseline for looking at other options.s. In- house prosecution was favored by several cities including Coon Rapids, Minnetonka and Bloomington. The volume of prosecutions in Fridley creates a favorable condition for an in-house arrangement. However, the costs of start-up of personnel and office space are significant obstacles that cannot be overcome within the City's current financial condition. Therefore City staff gave consideration to collaboration with another city. The cities of Fridley and Coon Rapids share similar policing philosophies and practices. There is also the opportunity to distribute similar costs over a larger base if the two cities operated as one for purposes of criminal prosecution. As they are both in Anoka County,patrol officers could share the same court calendar, thus saving overtime costs and attorney time related to prosecution. The City of Fridley approached Coon Rapids about sharing services. After several meetings Coon Rapids presented Fridley with a proposal for services. 197 Memo to Council September 22, 2017 Page 2 Overall, the proposal is favorable. The proposal would save the City of Fridley$40,000 over current costs. It also has the opportunity to reduce overtime expenses pertaining to patrol officer court time. It opens the door for victim services and administrative ticketing for code enforcement. Services could start January 1, 2018. The scope of services would be for criminal prosecution, and would not affect the current arrangements for civil legal services provided by Darcy Erickson. Before the two cities meet to finalize the terms and conditions, it would be beneficial if the City Council would direct City staff to take these next steps. A Joint Powers Agreement would be created between the two cities. The Services Agreement would be used to spell out the specific services and costs and term. This item would then return to the Council at its October 9 meeting. Recommendation Motion to direct City staff to negotiate a Joint Powers Agreement and Services Agreement with the City of Coon Rapids for prosecutorial services effective January 1, 2018. 98 AGENDA ITEM J) °r Fri&ej) CITY COUNCIL MEETING OF SEPTEMBER 25, 2017 DATE: September 21, 2017 TO: Wally Wysopal, City Manager4 FROM: Shelly Peterson, Finance Director RE: Consider resolution indicating the City's intent to assist with securing financing for future expansion of Brenk Brothers Inc. located at 7490 Central Ave The City has received a proposal from Brenk Properties LLC and Brenk Brothers Inc. to assist them in the financing of a significant expansion project. They have requested the issuance of Industrial Revenue Bonds (IRB)with the City of Fridley and anticipate the debt issuance to occur sometime in the 1st quarter of 2018. The project is planned to include the acquisition of land and the construction/equipping of approximately a 44,000 square foot expansion to their manufacturing facility located at 7490 Central Ave NE in Fridley. t g F .s s t Y Conduit debt is unlike most other City debt. This type of debt is initiated by and issued for the benefit of private entities. The private entity repays the debt and everything is typically handled by a bond trustee. Once issued, the city has little involvement in administration of the bonds. 1 The debt will not constitute a debt of the City and the City will not be pledging its full faith and credit towards any future repayment. The debt is considered a revenue note that is paid based on a pledged revenue stream which is solely the obligation of Brenk Brothers. Typically the City receives these requests from non-profit organization or for housing projects. 2014 was the most recentlyissuance of conduit debt for improvements at Totino-Grace.p otmo Grace. These types of issuances are limited to $10 million each calendar year. Because the request from Brenk Brothers is not a bank qualified obligation, it is excluded from the annual limit allowing 9 a owing the City the ability to provide additionalconduit debt in 2018 if requested. quested. Staff has reviewed the preliminary project plans with Brenk Brothers and is supportive of their business expansion. They are a successful machine shop and employer in the City and this expansion will complement their existing building and provide them room to grow. Providing this type of assistance will allow Brenk Brothers to remain in Fridley. The City's bond counsel has prepared the attached resolution. This is the first step in many to follow. This resolution attached indicates our preliminary intent to assist the financing of the project. With this resolution Brenk Brothers will be allowed to reimburse themselves with bond proceeds for expenses incurred prior to the actual issuance which is anticipated in early 2018. In addition to the attached resolution, this issuance of bonds by the City is subject to: • Holding of a public hearing on the proposal • The approval of the project by the City and the Minnesota Department of Employment and Economic Development • Review and approval of the proposed project by bond counsel • Final approval by the City Council, the company, and the purchaser of the bonds as to the ultimate details of the financing of the project • Receipt of federal bonding allocation for the bonds Recommendation Staff recommends that the City Council adopt a resolution taking official action with respect to indicating the City's preliminary intent to assist in the financing of the Brenk Brother project pursuant to the Minnesota Municipal Industrial Development Act. RESOLUTION NO. 2017- RESOLUTION RECITING A PROPOSAL FOR AN INDUSTRIAL DEVELOPMENT PROJECT TAKING OFFICIAL ACTION WITH RESPECT THERETO INDICATING PRELIMINARY INTENT TO ASSIST THE FINANCING OF THE PROJECT PURSUANT TO THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT (BRENK BROTHERS INC. PROJECT) WHEREAS, (a) The purpose of Minnesota Statutes, Sections 469.152 through 469.1655, as amended known as the Minnesota Municipal Industrial Development Act (the "Act") as found and determined by the legislature is to promote the welfare of the state by the active attraction and encouragement and development of economically sound industry and commerce to prevent so far as possible the emergence of blighted and marginal lands and areas of chronic unemployment; (b) Factors necessitating the active promotion and development of economically sound industry and commerce are the increasing concentration of population in the metropolitan areas and the rapidly rising increase in the amount and cost of governmental services required to meet the needs of the increased population and the need for development of land use which will provide an adequate tax base to finance these increased costs and access to employment opportunities for such population; • (c) The City Council of the City of Fridley, Minnesota (the "City") has received a proposal from Brenk Properties LLC, a Minnesota limited liability company and Brenk Brothers Inc. a Minnesota corporation, (collectively, the "Company"), that the City assist in financing a Project hereinafter described, through the issuance of revenue bonds, to be issued in one or more series, in the principal amount not to exceed $7,000,000 (the "Bonds")pursuant to the Act; (d) The City desires to facilitate the selective development of the community, retain and improve the tax base and help to provide the range of services and employment opportunities required by the population; and the Project will assist the City in achieving those objectives. The Project will help to increase tax capacities of the City and surrounding area and help maintain a positive relationship between tax capacities and debt and enhance the image and reputation of the community; (e) The "Project" to be financed by the Bonds is the acquisition of land, and the construction and equipping of an approximately 44,000 square foot expansion of an existing manufacturing facility located at 7490 Central Avenue Northeast in the City (together, the "Project"). The Project is and will be owned, operated, and managed by Brenk Brothers Inc. (f) The City has been advised by representatives of the Company that conventional, commercial financing to pay the capital cost of the Project is available only on a limited basis V and at such high costs of borrowing that the economic feasibility of operating the Project would be significantly reduced; (g) No public official of the City has either a direct or indirect financial interest in the Project nor will any public official either directly or indirectly benefit financially from the Project. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fridley, Minnesota, as follows: 1. The Council hereby indicates its preliminary intent to undertake the Project pursuant to the Minnesota Municipal Industrial Development Act and to issue the Bonds in the principal amount not to exceed $7,000,000 pursuant to the Act to finance the Project. 2. On the basis of information available to the Council it appears, and the Council hereby finds, that the Project constitutes properties, real and personal, used or useful in connection with one or more revenue producing enterprises within the meaning of Subdivision 2(a) of Section 469.153 of the Act; that the Project furthers the purposes stated in Minnesota Statutes, Section 469.152; that the availability of the financing under the Act and willingness of the City to furnish such financing will be a substantial inducement to the Company to undertake the Project, and that the effect of the Project, if undertaken, will be to encourage the development of economically sound industry and commerce, to assist in the prevention of the emergence of blighted and marginal land, to help prevent chronic unemployment, to help the City retain and improve the tax base and to provide the range of service and employment opportunities required by the population, to help prevent the movement of talented and educated persons out of the State and to areas within the State where their services may not be as effectively used, to promote more intensive development and use of land within the City and eventually to increase the tax base of the community. 3. The issuance of the Bonds by the City is subject to, among other things, (a) the holding of a public hearing on the proposal, (b) the approval of the Project by the City and the Minnesota Department of Employment and Economic Development, (c) review and approval of the proposed Project by Bond Counsel, (d) final approval by this Council, the Company, and the purchaser of the Bonds as to the ultimate details of the financing of the Project, and (e) receipt of federal bonding allocation for the Bonds. 4. The Company has agreed and it is hereby determined that any and all costs incurred by the City, including all fees required by the City's administrative policies, in connection with the financing of the Project whether or not the Project is carried to completion and whether or not approved by the City will be paid by Company. 5. Nothing in this resolution or in the documents prepared pursuant hereto shall authorize the expenditure of any municipal funds on the Project other than the revenues derived from the Project or otherwise granted to the City for this purpose. The Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property or funds of the City except the revenue and proceeds pledged to the payment thereof, nor shall the City be subject to any liability thereon. The holder of the Bonds shall never have the right to compel any exercise of the taxing power of the City to pay the outstanding principal on the Bonds or the interest thereon, or to enforce payment thereof against any property of the City. The Bonds shall recite in substance that the Bonds, including interest thereon, are payable solely from the revenues of the Project and proceeds pledged to the payment thereof. The Bonds shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation. 6. It is the purpose of this resolution to evidence the commitment of the parties and their intentions with respect to the proposed Project in order that the Company may proceed without delay with the commencement of the acquisition of the Project with the assurance that there has been sufficient "official action" within the meaning of the Internal Revenue Code of 1986, as amended, to allow for the issuance of industrial revenue bonds (including, if deemed appropriate, any interim note or notes to provide temporary financing thereof) to finance the entire cost of the Project upon agreement being reached as to the ultimate details of the Project and its financing. 7. In anticipation of the final approval by the City of the issuance of the Bonds to finance all or a portion of the Project, and in order that completion of the Project will not be unduly delayed when approved, the Company is hereby authorized to make such expenditures and advances toward payment of that portion of the costs of the Project to be financed from the proceeds of the Bonds as Company considers necessary, including the use of interim, short-term financing, subject to reimbursement from the proceeds of the Bonds if and when delivered but without liability on the part of the City. 8. A public hearing on the proposal of the Company will be held at a later date requested by the Company and scheduled for public hearing by the City. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY, THIS 25TH DAY OF SEPTEMBER, 2017. SCOTT J. LUND - MAYOR ATTEST: DEBRA A. SKOGEN - CITY CLERK • STATE OF MINNESOTA COUNTY OF ANOKA CITY OF FRIDLEY I, the undersigned, being the duly qualified and acting Manager of the City of Fridley, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council of the City duly called and held on the date therein indicated, insofar as such minutes relate to a resolution giving preliminary approval to an industrial development project. WITNESS my hand this day of September, 2017. Manager a/i AGENDA ITEM • jrdiey CITY COUNCIL MEETING OF SEPTEMBER 25, 2017 INFORMAL STATUS REPORTS • j 99