CCM 12/14/2020
CITY COUNCIL MEETING
CITY OF FRIDLEY
DECEMBER 14, 2020
The City Council meeting for the City of Fridley was called to order by Mayor Lund at 7:00 p.m.
MEMBERS PRESENT: Mayor Lund
Councilmember Ostwald
Councilmember Tillberry
Councilmember Eggert
Councilmember Bolkcom
OTHERS PRESENT: Wally Wysopal, City Manager
Dan Tienter, Finance Director
PROCLAMATIONS:
Fridley Tigers Football Team Appreciation Day Wednesday, December 16, 2020
APPROVAL OF PROPOSED CONSENT AGENDA:
APPROVAL OF CITY COUNCIL MINUTES:
1. City Council Meeting of November 23, 2020.
APPROVED.
NEW BUSINESS:
2. Adopt Resolution No. 2020 – 76 Accepting and Confirming Statutory Tort Limits for
2021.
ADOPTED RESOLUTION NO. 2020 – 76.
3. Claims: 191059 – 191291.
APPROVED.
ADOPTION OF PROPOSED CONSENT AGENDA:
MOTION by Councilmember Bolkcom to adopt the proposed consent agenda as presented.
Seconded by Councilmember Tillberry.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 14, 2020 PAGE 2
OPEN FORUM, VISITORS:
No one from the audience spoke.
ADOPTION OF AGENDA:
MOTION by Councilmember Ostwald to adopt the Agenda as presented. Seconded by
Councilmember Eggert.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
TRUTH-IN-TAXATION PUBLIC HEARING:
4. Proposed 2021 City of Fridley Budget and Property Tax Levy.
MOTION by Councilmember Bolkcom to waive the reading of the notice and open the Truth-in-
Taxation public hearing. Seconded by Councilmember Tillberry.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY AND THE TRUTH-IN-TAXATION PUBLIC
HEARING OPENED AT 7:12 P.M.
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Dan Tienter, Finance Director, said this is the 8 time the truth-in-taxation has been discussed
with Council. The budget goals and objectives are consistent with the Vision Statement and
Organizational Values of the City. The proposed 2021 Budget seeks to provide excellent public
services at a fiscally responsible cost. Under this general goal, the City relies upon a series of
guidelines to prepare the annual budget to stabilize ongoing revenues and expenditures, eliminate
unanticipated variances, maintain structural balance and appropriate cash or fund balance levels,
increase accountability and transparency throughout the budget process, make greater use of
existing City resources and ensure a financially competitive organization while maintaining
exceptional service levels.
Mr. Tienter reviewed the economic condition for the State of Minnesota and the region for 2020.
He said the State projected a $638M budget deficit for the upcoming biennium. Several factors
continue to cause uncertainty in short-term and long-term economic forecasts including the spread
of COVID-19 and business survival. Ongoing Federal support for COVID-19 response remains
an open question together with shifts in Federal fiscal, monetary and trade policies following the
election. Concerns about a lingering recession or weak economic growth loom large.
Mr. Tienter said consistent with the City Charter, the City Council’s actions and guidance, support
the current complement of Full-Time Equivalent employees and the proposed 2021 General Fund
Budget will be structurally balanced. The proposed 2021 budget does not include any expenditures
or revenues associated with the pending Parks System Master Plan or issuance of any General
Obligation Bonds and/or Equipment Certificates to support Capital Projects Fund or Enterprise
Fund activities.
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 14, 2020 PAGE 3
Mr. Tienter stated the Property Tax Revenue is based on previous Council guidance, and the
Proposed 2021 Budget assumes a 4.85% increase, or $763,176, in the property tax levy compared
to 2020. Intergovernmental Grants and Aids budgets for a $50,000 reallocation of Local
Government Aid to the Capital Projects Funds and assumes for a 15.0% reduction, about $39,000,
in Municipal State Aid for Maintenance, and includes a federal grant for approximately $105,000
to support impaired driving enforcement. Charges for Services assumes a reduction of about
$26,500, or 1.2%, primarily as a result of anticipated reductions in Park and Recreation Division
program revenue.
Mr. Tienter said the Proposed 2021 Budget assumes license and permit revenues to remain at
2020 levels. Miscellaneous Other Financing Sources assumes a $10,400 reduction in
miscellaneous revenue due to a decrease in donations and gambling taxes, includes a $2,045,000
reduction, or 91.6%, in other financing sources due to recognition of the Coronavirus Relief Fund
monies in 2020, and assumes no use of the “Closed Bond” Fund/Community Investment Fund to
support City operations.
Mr. Tienter said Personal Services comprises about $14,104,700 or 76% of the proposed 2021
budget for the General Fund. This budget includes about $168,500 to support anticipated changes
to the compensation plan of 2021. Supplies are consistent with planned reduction for 2021 and
decreased about $5,200 compared to 2020. Other Services and Charter budgets an increase of
about $342,200 primarily due to a shift in maintenance activities from the Streets Capital Projects
Fund.
Mr. Tienter said Cable Television assumes a decrease in franchise fees of $8,600 compared to
2020 and budgets a $70,100 use of fund balance compared to 2020. Solid Waste Abatement
assumes Select Committee on Recycling and the Environment (SCORE) grant funds remain flat
for 2021. This includes an increase in the quarterly residential fee from $9.83 in 2020 to $11.20
in 2021, or an increase of $1.37. It budgets a contribution of about $11,700 to fund balance. The
Police Activity Fund budgets a $77,700 decrease in charges for services to reflect a change in the
county-wide Toward Zero Deaths grant. Springbrook Nature Center includes a 3.75% increase in
the Property Tax Levy with an anticipated 2.2% decrease in the collection rate. Budgets $32,000
use of fund balance reduction compared to 2020.
Mr. Tienter said the proposed Capital Investment Plan (CIP) consists of a collection of Capital
Project Funds designed to coordinate the financing of capital equipment, improvements, and other
projects. The City currently maintains six Capital Project Funds Building, Street, Parks,
Information Technology, Capital Equipment and Community Investment Fund. Building
Improvement includes an additional $125,000 for improvements to the offsite storage area,
budgets use of about $168,000 of fund balance, Street Improvement use of $988,000 of Municipal
State Aid to fund eligible capital projects. This assumes a $251,700 Property Tax Levy increase
to transfer street maintenance activities to the General Fund, assumes a $549,000 increase in
special assessments based on amendments to use the Major Roadway Maintenance Financing
Policy and budgets use of approximately $622,700 of fund balance.
Mr. Tienter said the Parks Improvement presently supports any costs related to Springbrook
Nature Center improvements. Budgets a $100,000 transfer from the Community Investment Fund
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 14, 2020 PAGE 4
which includes an additional $115,000 for improvements to Craig Park. Budgets use of about
$407,000 of fund balance for 2021. Information Technology in 2023, the fund will not meet the
lower limit fund balance threshold, followed by negative fund balances beginning in 2025. This
assumes an 8.0% increase in the IT Capital Project Property Tax Levy in 2021 annually through
2025. Also includes an additional $30,000 for upgrades to various conference rooms, and it
budgets a use of about $9,300 of fund balance in 2021.
Mr. Tienter said the Capital Equipment repayment of the $125,000 of LGA temporarily
reallocated in 2020 from the Parks Capital Projects Fund assumes an additional $50,000 of LGA
beginning in 2021 through 2025. Budgets for the use of certain leased vehicles beginning in 2021
and budgets a contribution to the fund balance of approximately $56,400. Community Investment
budgets continued repayment of the 2019A Interfund Loan and assumes no transfer from the
General Fund in 2020 due to COVID-19. Budgets no additional interfund loans and an estimated
ending cash balance of about $5,303,400 for 2021.
Mr. Tienter said the City regularly reviews the charges for services for all Enterprise Funds and
adjusts them annually. The charges, rates and fees for the funds provide for stable, predictable
modifications to the charge-for-service and maintain appropriate cash and fund balance limiting
the need for additional debt to support ordinary capital expenses. The Water Utility Fund budgets
repayment of the Community Investment Fund Interfund Loan beginning in 2020 which continues
through 2029. Water consumption continues to decline, approximately 22% since 2012, despite
an increase in population of about 3% over the same time. Budgets the use of approximately
$489,000 of cash balance. Sanitary Sewer Utility Fund budgets for cancellation of an Interfund
Loan beginning in 2021. The Municipal Wastewater Charge decreased by about $147,600 to about
$4,565,420 in 2021 to about 69% of all fund expenses. Budgets the use of about $938,400 of cash
balance.
Mr. Tienter said the Storm Water Utility Fund budgets the use of about $899,700 of cash balance.
In 2021, the fund will not meet the lower limit fund balance threshold, which will continue through
2024. The City may need to consider modifications to the fund or its activities to support the fund
balance requirements as part of the 2022 budget. The Municipal Liquor Fund assumes a 26.3%
Gross Profit Margin in 2021 through 2025. This fund will continue to transfer $388,500 to the
Parks Improvement Fund and Capital Equipment Fund to support planned capital projects. The
profitability of the Municipal Liquor Division will be impacted by shifting consumer behaviors as
a result of COVID-19 and other factors. Budgets the use of about $213,700 of cash balance.
Mr. Tienter said the Proposed 2021 Budget assumes a 4.85% increase in the property tax levy to
respond to the estimated cost pressures, anticipated revenue loss and City Council guidance related
to the Streets Capital Project Fund. The average residential homestead is $234,000 and medial
residential homestead is $222,400. The regular homestead credit refund is for property owners
with a household income of $115,020 in 2020. The special homestead credit refund is for property
owners with a change in net property taxes of more than 12% and at least $100 compared to the
previous year, assuming the change was not due to property improvements. Assuming the
proposed property tax levy change of 7.1%, a property owner with a $234,000 would pay an
estimated $5.55 more per month.
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 14, 2020 PAGE 5
Mr. Tienter noted the budget would be adopted on December 21, certified on December 22 and
the first day of the fiscal year 2021 would be on January 1. Based on the process to date, staff
recommend Council open the public hearing to accept comments regarding the Proposed 2021
Budget for final adoption on December 21, 2020. The Proposed 2021 Budget document can be
found on the City website under “City Financials”. Staff received comments from residents about
taxes being too high and home values diminishing and increases in size of unit parcels.
Mayor Lund noted the residents who commented are not here tonight and asked if staff have
reached out to them.
Mr. Tienter replied yes, and some people thought their value would decrease due to new
developments coming in, not increase.
Mayor Lund replied that it has been proven many times that new housing increases the value of
neighboring properties rather than diminish it.
Pat Maghrak, City Assessor, said this concern was from residents around the Holly Center
development that is coming in. The City has yet to find an instance where neighborhood values
have diminished when new developments come in. New improvements are usually a blessing for
the neighborhood.
Councilmember Bolkcom added this was a blighted property and will be a new property with
other amenities and should not decrease property values. This may even bring in business to
neighboring businesses. She asked if people were aware of the issue on statement from Anoka
County.
Mr. Tienter replied the City Assessor was made aware by Anoka County that they had removed
the residential homestead exclusion from around 60 properties. Information is on the City’s
website on how to get the exclusion put back on their property. Anoka County will issue new
notices in about three weeks and residents can reach out to Anoka County or City staff for help if
needed.
MOTION by Councilmember Bolkcom to close the Truth-in-Taxation public hearing. Seconded
by Councilmember Tillberry.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED AND THE PUBLIC HEARING CLOSED AT 8:10 P.M.
NEW BUSINESS:
5. Receive Bids and Award Contract for the Village Green Basin Expansion.
Jim Kosluchar, Public Works Director, stated the proposed project is in Ward 1 just south of
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Mississippi Street between University Avenue and 5 Street. This project is in the 2020-2024
Capital Investment Plan and is scheduled for 2021. The existing detention area was constructed
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 14, 2020 PAGE 6
as part of development in the 1980s and takes stormwater from the development and surrounding
area of about 80.4 acres total.
Mr. Kosluchar said in 2016 and 2019, the MWMO partnered with the City to fund a feasibility
study for the project. In 2019, the RCWD provided grant funding for the project. In July 2020,
the Met Council entered into a grant agreement to assist the City with the project. The new
property owner, Dominion, also provided funding for the project. The project includes plans to
excavate sediment from the bottom of the basis, and place over 2 feet of sand in the bottom to
improve infiltration. The existing outlet from the basin will be improved and pretreatment
manholes will be installed to help prevent sediment form entering the basin. Staff will work with
the owner to replace resident gardens and install a trail on the West side of the basin to allow better
access for residents.
Mr. Kosluchar said fifteen bids were received, and the low bid was from New Look Contracting
for $275,098. Bids ranged from $275,098 to $554,397. The engineers estimate was $400,610 and
the construction budget was $350,000. Staff recommends Council receive the bids submitted and
award the Village Green Basin Expansion Project to New Look Contracting of Rogers, MN, in the
amount of $275,098. If awarded, staff will begin notifying adjacent property owners about the
upcoming work with specific emphasis on tree removal.
Mayor Lund asked if staff had any idea what the increased capacity would be with this
improvement.
Mr. Kosluchar replied close to double from the original design 50 years ago.
Mayor Lund said even with a large rainfall the levels may exceed capacity. The outlet is only so
large, and it goes to Rice Creek. The problem is Rice Creek fills up in heavy rainfalls and backs
up. The drainage will not work right away until the rain stops. This project does not address
greater capacity at Rice Creek
Mr. Kosluchar replied that there is a limited pipe size between Rice Creek and this project. We
did do some capacity expansion but that is very expensive as pipes are in yards and it is hard to
increase capacity. We can set up capacity and, in this project, modify the outlet to let water out
quickly. If we can do that, we will have some additional storage within the pond and that should
help. We have done some interim improvements with Mississippi Street, and county drainage
areas we would like to talk about further to see what can be done.
Mayor Lund asked if there was any possibility of a direction outlet in another area rather than this
to create a retention storage pond somewhere else in that acreage.
Mr. Kosluchar replied that staff looked at that idea to store water at Commons, but it does not
match. Staff will continue to look for opportunities as redevelopment happens to meaningfully
help this system.
Mayor Lund said over time with the redevelopment of properties, they will have to contain their
own water and that will help. He asked if property owners were aware this is coming up.
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 14, 2020 PAGE 7
Mr. Kosluchar replied that a number of property owners are aware of the project but not the
timing.
Mayor Lund said that residents should be happy with this project but will lose the buffer from the
tree removal.
Councilmember Bolkcom asked if there would be an issue starting this project on frozen ground.
Mr. Kosluchar replied this is the best time to do this type of work. This area will have some
saturation in soils in the summertime and is more expensive and difficult to contain. When the
ground is somewhat frozen, they are able to work the equipment and haul materials out. Also,
contractors are looking for work so there is value with lower bids.
Councilmember Bolkcom asked about the cleanout process so shrubs do not grow again.
Mr. Kosluchar replied the stormwater has to pass through a pretreatment basin to separate heavier
solids that allowed this to build up in the past. If we can take out solid materials, this will increase
the life expectancy. Once we lose capacity it will stop sorting. Property owners are to clean up
simple sediment removal.
Councilmember Eggert asked if there was an outline or delineation of what kind of maintenance
should be done in their area.
Mr. Kosluchar replied that there is an outline and maintenance practice, cutting brush so it does
not grow into trees and not letting the get into a tangled mess. We are committing to clean out the
separator structure in the front end once/twice a year.
MOTION by Councilmember Tillberry to receive the bids and award the contract for the Village
Green Basin Expansion to New Look Contracting of Rogers, Minnesota. Seconded by
Councilmember Bolkcom.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
6. Informal Status Reports
Wally Wysopal, City Manager, said today the earth work will start in the Holly Center area with
the old gas station. Demolition will start later this week and the cake store will stay open through
Christmas.
Mr. Wysopal said a public hearing will be organized by the Met Council Environmental Services
Division, to build a new lift station at 6900 East River Road. The meeting will be held virtually
on December 17. People who would like to participate can find details on the Met Council’s or
the City’s website. Comments will be taken through December 28.
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 14, 2020 PAGE 8
Councilmember Bolkcom said this in an opportunity to ask questions. It will be three to four
years before it will be up and running.
Councilmember Ostwald said that the winter lights tour has 18 homes to visit and the map is on
the City’s website.
ADJOURN:
MOTION by Councilmember Ostwald to adjourn. Seconded by Councilmember Eggert.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 8:36 P.M.
Respectfully submitted,
Krista Peterson Scott J. Lund
Recording Secretary Mayor