CHM 04/24/2006 - 00028624CITY 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"' 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 9"'. 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
Adopted May 22, 2006
CHARTER COMMISSION MEETING OF APRIL 24, 2006 PAGE 2
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.
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.
Adopted May 22, 2006
CHARTER COMMISSION MEETING OF APRIL 24, 2006
PAGE 3
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.
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 neat meeting to endorse.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON JORGENSON DECLARED THE MOTION
CARRIED.
The Commissioners 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,
City Clerk/Staff Liaison
Kathleen Linder, Secretary
Adopted May 22, 2006