CHA 05/22/2006 •
TO: Charter Commission Members
_ FROM: Deb Skogen, City Clerk and Staff Liaison
Date: May 19, 2006
CITY OF Re: May 22, 2006, Charter Meeting
FRI DLEY
Reminder:
The Charter Commission policy requires a member to call or e-mail me before 8:00 a.m.
Monday, May 22nd as to whether or not they plan on attending the meeting.
If there will not be a quorum, those Commissioners who called will receive a phone call
notifying them there will not a quorum and the meeting will be cancelled. A notice will then be
placed on the door of the cancellation of the meeting for those commissioners who did not call,
but came to the meeting.
I sent your minutes to the City Council for their discussion during the May 15th Conference
Meeting. I have included a report from Rick Pribyl for your reference in discussing utility rate
n charges.
Deb Phone: 763-572-3523
e-mail: skogend(rr)ci.fridley.mn.us
•
CITY OF FRIDLEY
CHARTER COMMISSION
AGENDA
MONDAY, MAY 22, 2006 7:00 P.M.
LOCATION: Fridley Municipal Center
Meeting Room 1 (Lower Level)
CALL TO ORDER:
ROLL CALL:
1. APPROVAL OF AGENDA:
2. APPROVAL OF MINUTES
April 24,2006
3. Administrative Matters
A. Vacancies—Report from Nominating Committee
4. Discussion of Possible Rate Increase Question
5. Discussion of Chapter 1
6. Discussion of Mission Statement(remove from the table)
7. Discussion of Glossary/Index(remove from the table)
8. Discussion of Future Items
9. ADJOURNMENT
Next regular meeting: Monday, September 26, 2006, at 7:00 p.m. in Meeting
Room 1 in the Lower Level
CITY OF FRIDLEY
CHARTER COMMISSION MEETING
April 24,2006
CALL TO ORDER:
Chairperson Jorgenson called the Charter Commission meeting to order at 7:05 p.m.
ROLL CALL:
Members Present: Braam,Findell,Hoiby,Jorgenson,Linder,Reynolds
Members Absent: Borman,Fitzpatrick,Gordon,Holm, Soule,VanDan
Others Present: Deb Skogen, City Clerk/Staff Liaison
APPROVAL OF AGENDA:
Commissioner Braam MOVED and Commissioner Linder seconded a motion to approve the agenda.
UPON A VOICE VOTE,ALL VOTING AYE,CHAIRPERSON JORGENSON DECLARED THE MOTION
CARRIED UNANIMOUSLY.
APPROVAL OF FEBRUARY 27,2006 CHARTER COMMISSION MINUTES:
Commissioner Braam MOVED and Commissioner Linder seconded a motion to approve the February 27,2006
Charter Commission Minutes.
UPON A VOICE VOTE,ALL VOTING AYE,CHAIRPERSON JORGENSON DECLARED THE MOTION
CARRIED UNANIMOUSLY.
1. ADMINISTRATIVE MATTERS
A. Vacancies
The Commission reviewed the applications and discussed putting together a questionnaire for further
information. It was determined that the following five questions would be asked:
1. Would you be available for winter meetings(the months of January through May)?
2. If you are appointed,what would your expectations be?
3. Does your job require travel,especially at the end of the month or the 4`h Monday of the month?
4. Why would you want to be on the Charter Commission,what could you bring to the table?
5. Are you familiar with what the City Charter is?
6. Is there anything else or any other comments you would like to share with the Commission?
Staff was instructed to send a letter and questionnaire to the applicants requested a reply by May 9t. After the
questionnaires are returned,the nominating committee will review the applications and make a recommendation
at the next meeting. The Committee will consist of Peter Borman,Carol Hoiby,Bill Holm and Don Findell.
B. Election of Officers
Chairperson Jorgenson reviewed the nominating committee report and opened the floor for further nominations.
Receiving none,Commissioner Findell MOVED and Commissioner Hoiby seconded a motion to close the
nominations and elect the officers nominated by the Nominating Committee.
CHARTER COMMISSION MEETING OF APRIL 24,2006 PAGE 2
UPON A VOICE VOTE,ALL VOTING AYE,CHAIRPERSON JORGENSON DECLARED THE MOTION
CARRIED AND THE OFFICERS WERE ELECTED AS FOLLOWS: Nancy Jorgenson,Chair;Peter Borman;
Vice Chair and Cindy Soule, Secretary.
2. DISCUSSION OF POSSIBLE RATE INCREASE QUESTION
Chairperson Jorgenson asked staff if the City Council had decided to adopt a question for the voters to increase the
utility rates. Staff said that they are in budget discussions,but at this time there was no formal proposal. If there was
a question,would the increase be a specific increase or an increase over and above the rate of inflation or 5%,
whichever was lower.
Commissioner Reynolds said an election could be held for a rate increase every two years,but wondered if a
question could include a two year rate increase,ie, 9%+ri/5%for the first year and 11%+ri/5%the second year.
Chairperson Jorgenson wondered if the increase would be the same for all utilities.
Commissioner Reynolds thought it would be much more difficult to try to pass a question with different rates,it
would be too hard to understand.
Commissioner Findell said he did not want to micro-manage the city. He said staff was appointed for their
knowledge and expertise to provide recommendations to the city council.
The Commission then discussed administrative costs in each fund. Commissioner Reynolds wanted to know what
$700,000 in water would be used for.
Chairperson Jorgenson said the City was redoing their infrastructure and that part of the funds were allocated to that.
Commissioner Reynolds said she had researched bond ratings and felt the likelihood of an entity going bankrupt was
very rare. She did not understand how using the reserves would cause the bond rating to go down.
Chairperson Jorgenson said that previously the city had up to five years of savings to pay for projects and
administrative costs. Due to using the reserves,however,the city now only has up to 6 months of savings. She said
that the City of Cambridge had to file bankruptcy because they sold too many bonds for their infrastructure expecting
more development. The development did not happen and there weren't enough taxpayers to help pay for the bonds.
Commissioner Hoiby asked if the City Council was looking for a recommendation from the Charter Commissioner.
Chairperson Jorgenson said they usually discuss and make final recommendations at their June meeting after the
legislature has adjourned.
Further discussion ensued regarding what increase they could recommend and it was decided that they did not think
they had the authority to come up with a rate,but rather maybe make a recommendation that they agree and increase
is necessary and provide support to the city council to help get the increase passed.
The liquor store was briefly discussed as Commissioner Hoiby said that Holiday is expected to redevelop or remodel
the current Cub building.
Chairperson Jorgenson suggested going to the voters with a multi-year increase(4 years)similar to that of the school
districts to provide a track record that the city did try to increase the rates.
Commissioner Hoiby said she did not feel qualified to recommend a specific percentage increase,but agreed to
support the City Council if they did request a question with a rate increase to the voters.
CHARTER COMMISSION MEETING OF APRIL 24,2006 PAGE 3
Commissioner Reynolds said that if they do try to sell this to the voters,they should take into consideration that
cities do not all bill the same way for their services,for instance garbage is included in several cities and the rate
structure is different.
Commissioner Braam MOVED and Commissioner Findell seconded a motion letting the City Council know the
Commission is in agreement that something needs to be done given the circumstances and requesting the City
Council suggest a justifiable figure the Commission could review and discuss for their next meeting to endorse.
UPON A VOICE VOTE,ALL VOTING AYE,CHAIRPERSON JORGENSON DECLARED THE MOTION
CARRIED.
The Commissioner continued to discuss rate increases and whether to put a band-aid on the funds or help provide
more money for the funds to break-even or cover costs of providing the services.
ADJOURNMENT:
Commissioner Findell MOVED and Commissioner Braam seconded a motion to adjourn the meeting.
UPON A VOICE VOTE,ALL VOTING AYE,CHAIRPERSON JORGENSON DECLARED THE MOTION
CARRIED AND THE MEETING WAS ADJOURNED AT 8:30 P.M.
Respectfully submitted,
Debra A. Skogen, Kathleen Linder,Secretary
City Clerk/Staff Liaison
We met with the City Council in their Conference meeting last Monday regarding the
concept of taking a 2 year"break even"rate increase to the voters. The Council agreed
with the recommendation that this appears to be the logical thing to do this year. It would
also appear this is the last step in covering all the bases associated with attempting to
increase the utility rates in order to maintain the financial stability of the utility funds and
not cause a drain on other city resources.
Staff will be working to create simple language that is based on a rate and not a
percentage. It is hoped that this will assist in providing information to the voter as to the
relatively small nature of the increase in hopes that the question will pass.
The breakeven information is as follows:
Utility Rate Increase Associated With Ballot Break Even
19-May-06
Total
Water Increase Cost per Thousand Quaterly Quarters Annual
Thousand Gallons Cost In Year Cost
2006 $ 1.20 18 $ 21.60 4 $ 86.40
2007 $ 1.32 18 $ 23.76 4 $ 95.04 $ 8.64 2007 Increase
2008 $ 1.45 18 $ 26.10 4 $ 104.40 $ 9.36 2008 Increase
$ 18.00 Cumulative 2 year increase
.0—`N Sewer Increase 21%
2006 $ 2.52 18 $ 45.36 4 $ 181.44
2007 $ 2.76 18 $ 49.68 4 $ 198.72 $ 17.28 2007 Increase
2008 $ 3.02 18 $ 54.36 4 $217.44 $ 18.72 2008 Increase
$ 36.00 Cumulative 2 year increase
20%
$ 54.00 Overall 2 year Increase
$267.84 Base 2006 Cost
20% 2 year%increase
PREPARED 2/.. 06, 13:46:08 VENDOR ACTIVITY LISTING ) PAGE 1 )
PROGRAM GM370L ACCOUNTING PERIOD 14/2000
CITY OF FRIDLEY
VENDOR # / NAME / STATUS
ACCTG ---TRANSACTION--- ENCUMBRANCE TRANSACTION
BATCH P.O. # PER. CD DATE NUMBER INVOICE NUMBER DESCRIPTION ACCOUNT NUMBER AMOUNT AMOUNT
13020 METROPOLITAN COUNCIL A
00084 1/06 AP 1/17/06 125275 815757 WASTWATER-FEB 602-7600-415.43-38 216827.76
01408 12/05 AP 12/09/05 124794 813287 JAN WASTEWTR SERV 602-0000-136.00-00 216827.76
01246 11/05 AP 11/04/05 124102 810682 DEC WASTE WATER SERVICE 602-7600-415.43-38 210146.41
01161 10/05 AP 10/07/05 123798 808552 NOV WASTEWATER CHARGE 602-7600-415.43-38 210146.41
01038 9/05 AP 9/07/05 123337 806321 OCT WASTE WATER SERVICE 602-7600-415.43-38 210146.41
00922 8/05 AP 8/04/05 122979 804047 WASTEWATER SERVICE-SEPT 602-7600-415.43-38 210146.41
00789 7/05 AP 7/08/05 122580 802032 WASTEWATER SERV AUG 602-7600-415.43-38 210146.41
00665 6/05 AP 6/07/05 122082 799667 JUNE WASTWATER SERV 602-7600-415.43-38 210146.41
00633 6/05 AP 5/31/05 121976 798941 PERMIT FEES 601-7200-415.43-31 675.00 ,/
00555 5/05 AP 5/06/05 121697 796822 WASTEWATER SERV-JUNE 602-7600-415.43-38 210146.41
00396 4/05 AP 4/08/05 121263 794589 MAY WASTEWATER SERV 602-7600-415.43-38 210146.41
00277 3/05 AP 3/08/05 120929 791896 APRIL WASTEWATER SERV 602-7800-415.43-38 210146.41
00193 2/05 AP 2/09/05 120638 789761 MARCH WASTEWATER SERV 602-7600-415.43-38 210146.41
00062 1/05 AP 1/10/05 120181 787567 FEB WASTEWATER SERVICE 602-7600-415.43-38 210146.41
01263 12/04 AP 12/08/04 119702 785455 JAN WASTEWATER SERVICE 602-0000-136.00-00 210146.41
01133 11/04 AP 11/04/04 119288 784029 WASTE WATER DEC 602-7600-415.43-38 192432.93
01038 10/04 AP 10/08/04 118786 782585 WASTEWATER SERVICE 602-7600-415.43-38 192432.93
00915 9/04 AP 9/10/04 118319 781105 OCT WASTE WATER 602-7600-415.43-38 192432.93
00799 8/04 AP 8/06/04 117842 779394 SEPT WASTWATER SERVICE 602-7600-415.43-38 175294.33
00718 7/04 AP 7/08/04 117529 777944 AUG WASTEWATER SERVICE 602-7600-415.43-38 175294.33
00600 6/04 AP 6/08/04 117081 776445 WASTE WATER SERVICE 602-7600-415.43-38 175294.33
00461 5/04 AP 5/07/04 116590 0000774174 WASTEWATER SERVICE 602-7600-415.43-38 198529.93
00487 5/04 AP 5/07/04 116671 0000774573 2004 PERMIT FEE 601-7200-415.43-31 600.00
00358 4/04 AP 4/07/04 116192 MAY WASTEWATER SERVICE 602-7600-415.43-38 198529.93
00251 3/04 AP 3/05/04 115737 771025 APRIL WASTEWATER SERV 602-7600-415.43-38 198529.93
00184 2/04 AP 2/10/04 115451 0000769238 MARCH WASTE WATER SERV 602-7600-415.43-38 202835.80
00184 2/04 AP 1/29/04 115451 0000769022 JAN WASTE WATER ADJUSTMT 602-7600-415.43-38 12109.60
00049 1/04 AP 1/09/04 115016 WATERWASTE SERVIC FEB 602-7600-415.43-38 196781.00
01199 12/03 AP 12/04/03 114568 0000766218 WASTEWATER SERVICE 602-0000-136.00-00 196781.00
01128 11/03 AP 11/07/03 114299 0000764828 WASTEWATER SERVICE 602-7600-415.43-38 199069.00
01007 10/03 AP 10/09/03 113861 763446 WASTE WATER SERVICE 602-7600-415.43-38 199069.00
00881 9/03 AP 9/05/03 113388 761975 WASTEWATER SERVICE 602-7600-415.43-38 199069.00
00789 8/03 AP 8/06/03 112919 760322 WASTEWATER SERVICE 602-7600-415.43-38 191750.00
00696 7/03 AP 7/08/03 112489 758976 WASTEWATER SERV AUG 602-7600-415.43-38 191750.00
00605 6/03 AP 6/09/03 112059 0000757592 WASTE WATER JULY 602-7600-415.43-38 191750.00
00476 5/03 AP 5/06/03 111514 756132 WASTE WATER SERVICE 602-7600-415.43-38 194627.33 /
00451 5/03 AP 4/29/03 111411 2003 PERMIT #0852 FEE 601-7200-415.43-31 575.00 ■
00339 4/03 AP 4/07/03 110993 MAY WASTEWATER SERVICE 602-7600-415.43-38 194627.33
00245 3/03 AP 3/06/03 110534 752676 APRIL WASTEWATER SERV 602-7600-415.43-38 194627.33
00145 2/03 AP 2/06/03 110103 0000751029 MARCH WASTEWATER SERV 602-7600-415.43-38 228462.00
00044 1/03 AP 1/08/03 109652 749608 WASTEWATER FEB 602-7600-415.43-38 228462.00
01220 12/02 AP 12/06/02 109119 0000748225 WASTEWATER SERVICE 602-7600-415.43-38 228462.00
01123 11/02 AP 11/08/02 108536 0000746935 SEWER CHARGES 602-7600-415.43-38 197140.30
01033 10/02 AP 10/10/02 108110 745552 WASTEWATER SERVICE 602-7600-415.43-38 197140.30
00873 9/02 AP 9/05/02 107352 744139 WASTEWATER SERVICE 602-7600-415.43-38 197140.30
00763 8/02 AP 8/07/02 106895 742655 SEPT SEWER SERVICE 602-7600-415.43-38 174291.00
00653 7/02 AP 7/08/02 106428 0000741363 WASTWATER SERVICE 602-7600-415.43-38 174291.00
00544 6/02 AP 6/07/02 105834 0000740057 WASTE WATER CHRG 602-7600-415.43-38 174291.00
00451 5/02 AP 5/09/02 105354 0000738694 WASTEWATER SERVICE 602-7600-415.43-38 166275.50
PREPARED 2,_/06, 13:46:08 VENDOR ACTIVITY LISTING PAGE 2
PROGRAM GM370L ACCOUNTING PERIOD 14/2000
CITY OF FRIDLEY
VENDOR # / NAME / STATUS
ACCTG ---TRANSACTION--- ENCUMBRANCE TRANSACTION
BATCH P.O. # PER. CD DATE NUMBER INVOICE NUMBER DESCRIPTION ACCOUNT NUMBER AMOUNT AMOUNT
00426 5/02 AP 4/30/02 105236 738613 MPDES PERMIT 601-7200-415.43-31 2352.06 Y/
00426 5/02 AP 4/30/02 105236 738117 MPDES PERMIT 601-7200-415.43-31 525.00
00351 4/02 AP 4/08/02 104918 0000736528 WASTE WATER SERVICE 602-7600-415.43-38 166275.50
00241 3/02 AP 3/05/02 104408 0000735287 WASTE WATER SERVICE 602-7600-415.43-38 166275.50
00141 2/02 AP 2/07/02 103972 733704 WASTEWATER SERVICE 602-7600-415.43-38 186484.40
00042 1/02 AP 1/15/02 103462 732406 FEB WASTEWATER SERVICE 602-7600-415.43-38 186484.40
01003 11/01 AP 11/07/01 102587 WASTE WATER SERVICE 602-7600-415.43-38 202724.00
00902 10/01 AP 10/04/01 102141 728521 SEWER CHRGS 602-7600-415.43-38 202724.00
00790 9/01 AP 8/31/01 101707 0000727018 SEWER CHRGS 602-7600-415.43-38 202724.00
00668 8/01 AP 8/07/01 101152 SEWER CHARGES 602-7600-415.43-38 185063.33
00559 7/01 AP 7/05/01 100536 724422 SEWER CHGS 602-7600-415.43-38 185063.33
00471 6/01 AP 6/07/01 100062 0000723095 SEWER CHARGES 602-7600-415.43-38 185063.33
00382 5/01 AP 5/07/01 099585 0000721893 SEWER CHRGS 602-7600-415.43-38 178010.87
00359 5/01 AP 4/27/01 099451 PERMIT FEES 2001 601-7200-415.43-31 500.00 ■
00278 4/01 AP 4/05/01 099010 0000719789 SEWER CHGS 602-7600-415.43-38 178010.87
00181 3/01 AP 3/15/01 098598 SEWER CHARGES 602-7600-415.43-38 178010.87
00103 2/01 AP 2/07/01 098192 717011 SEWER SERVICE 602-7600-415.43-38 185555.00
00021 1/01 AP 1/01/01 097625 SEWER CHARGES 602-7600-415.43-38 185555.00
01097 12/01 AP 1/01/01 102971 0000731034 SEWER CHARGES 602-7600-415.43-38 186484.40
01074 12/00 AP 12/06/00 097106 0000714396 SEWER WATER 602-7600-415.43-38 185555.00
00974 11/00 AP 11/06/00 096614 0000713144 DEC WASTEWATER 602-7600-415.43-38 202064.00
00854 10/00 AP 10/06/00 095993 WASTEWATER SERVICES NOV 602-7600-415.43-38 202064.00
00758 9/00 AP 8/31/00 095403 WATER WASTE SERVICE 602-7600-415.43-38 202064.00
00684 8/00 AP 8/01/00 094994 WASTE WATER SERVICES 602-7600-415.43-38 194336.00
00581 7/00 AP 6/30/00 094394 WASTEWATER SERVICE 602-7600-415.43-38 194336.00
00503 6/00 AP 6/05/00 093933 0000706533 SEWER CHARGES-JULY 602-7600-415.43-38 194336.00
00365 5/00 AP 6/01/00 093354 WASTEWATER SERVICE 602-7600-415.43-38 185472.00
00305 4/00 AP 4/17/00 093004 0000701763 SEWER CHARGES 602-7600-415.43-38 185472.00
00265 4/00 AP 3/31/00 092776 MARCH SAC CHARGES 602-0000-209.00-00 5445.00 .,
00227 3/00 AP 3/20/00 092573 APRIL SEWER CHARGE 602-7600-415.43-38 185472.00
00144 2/00 AP 2/01/00 092153 SEWER CHGS 602-7600-415.43-38 169152.00
00035 1/00 AP 1/10/00 091452 0000697582 FEB WASTEWATER SERVICE 602-7600-415.43-38 169152.00
VENDOR TOTAL - .00 14,225,641.66