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03/31/1969 - 5524' ' , � �J � ' ' ' ' ' ' , � � ' , COUNCIL SECRETARY-JUEL MER�'R COUNCIL MCETING AGENDA 7:00 P.M.- �RCH 31, 1969 3� SPECIAL COUNCIL MEETING - MARCH�$; 1969 - 7;00 P.M. PLEDGE QF ALLEGIANCE; + ROLL CALL: ADOPTION OF AGENDA: OLD SUSINESS: None NEW BUSINESS: 1. Discussion Regarding Fireman's Pension Legislation. Pages 1- 3 2. Discussion Regarding Resolution on Minnesota Chamber of Commerce's Split-Liquor Recommended change in House Amendment to S. F. �i271. Page 4 3. Consideration of Special Use Permit for Holiday Village for Operation of their �arden Store. Page 5 Comment: No fee necessary as Council gave permission to leave frame work erected. They would like to get ready for spring business) 4. License. ADJOURN: 0 Page 6 � � � � TNOAUS E. GCEIG . ✓ SENATOR S/fH.DISTiIGT . (y� RICE CREEK TE4RACE rytIDIEY, MINNESOTA 55477 ,,;...°�� ��i ;�-�,�c,.; �:<.� .'�,'�; �.y 1�',��� �s�3� �+{ � �y . -e. �i= �fnte of 3.litizite�ufa SENATE March 5, 1969 � . �pMMiTTEES� AGRINLTIIRE �� � GAME AND FISH LOCAL GO�ERNMENT ►U6LIC WELiARE TEM!'ERANCF AND tIQUOA CONTROI Mr. Homer Ankrum 6�{31 Universi'y *7.E. Frraiey, Minn. 5542i Dear Mr. Ankrum: As per our conversation please draw to the attention of Robert Aldrich and the Council and advise of your findings. TEG:br enc. .,;,.,. Very truly yours, Thomas E. Greig � r; ! �J: � £ Fr M!Y$ERS OF iHE SENATE 1{ � T OpdeM � � r c� ' . �oo.ee ,� Cw.� �+ee�a V'lla �B DoJand � K I f GI �o.. MIN � J A J I�en . . ■nn4 Y, Maulron F..c�f.. Ln.re.� pSs �� � J� `. +h� � ��Yl'C-„�-.:+ 7 ��`,� � �� ���-�:�.. 5� �y ; : �'w�::%ii ?�i��..�:�, . LEGISLATIVE RETIREAIENT STUDY C�MAIISSION Stote Capitol—St. Paul, Minnesofa 5510T Tetephone 227-2750 � TO: Senator Greig FROM: Frank Moulton DATE; March 4, 1969 RE: H.F. 985 - A bill for an act relating to the firemen's relief association in the city of Fridley .. ti,., YEMBECS Of TME NOUSE 7M Md n Cx. � t�a^.ea v o nae w R.6 t E C a� C 1 R la�a., Laua.y J pF T 0 N. II Ea.e.d 1. Temsk�k . PURPOSE OF BILL The purpose of this bill is to set up a new local firemen's pension fund for paid firemen and at the same time to provide considerably larger benefits for volunteer firemen than the general statutes for volunteer fire associations provide. Throughout, the bill sets up ma�cimum limits fot the various categories of benefits, providing that the actual level of benefits be set by bylaws of the association. Sections I thru 5 set moderate levels as maximum benefits, ali subject to bylaw. COMMENT: Up to this point, the normal cost of the maximum benefits R would be in the neighborhod of 19% of the salary from which deductions �`� were made. *� � .� Section 6 wi21 allow amendments to the bylaws to drastically alter the costs and benefits of the pension plan. . Subd. 1 would permit only a modes± increase, bui Subd. 2(a) would change the computation of all benefits to the -salary of the last year of employment. Financial effects would be: 1. Normal cost would increas2 approximately 289'0 of covered pay; 2. The deficit wouId immediately increase in proportion. • m;-��; ,� .. . y � Senator Glewwe, page 2 Subd. 2(b) would permit the bylaws to further increase benefits to fully escalate the plan, providinq for all beneficiaries, including firemen who are retired, widows and children, to participate in each pay raise granted to employed firemen. The effect on costs would be: 1. The normal cost would be increased to somewhere in the neighborhood of 40% of covered pay; 2. The deficit would immediateIy increase proportionately. Section 7 thru 12 provide for Sncreasing the pensions to volunteer firemen above the limits provided in the general statutes of the state: �� Volunteer firemen's retirement pension of $40 is increased to maximum of S100 plus credit for additional years of service over 20 Widows' pensions are provided for voIunteer firemen. They are not — provided in the general statutes. Post-retirement widows' pensions, i.e. widows of retired firemen, are established. These are not provided in the general statutes. NOTE: This is a comparatively costly provision. Surviving children's benefits are provided for volunteer firemen. They are notin the general statutes. �� � comparatively liberal set of benefit provisions for volunteer �,; firemen in case of disability are established wlth pensions up to $100 per month . Sections 13 and 14 provide adequate financinq, including the amortlzation of the deficit within 20 years; all based on actuarial surveys prepared aCCOrding to statufory requirements. Section 15 provides for rallfication of bylaws by the governing body of the Gity of £ridley. This is presumably by majority vote of the council. The council would have no authority to reduce benefits once established. t In view of the fact that eacfi increase in benefits proposed to be by �� bylaw vrould raise all future costs to the city for the pension fund and would t create deficits which are in practical effect indebtedness to the city, per- s 1 haps somewhat higher requirements for ratiflcation of bylaws might be in ``� order. • �� � � Senator Glewwe, page 3 GENERAL COMMENT: Since the actual benefits would be subject to bylaw, which in turn can be changed at any time, an actuarial analysis would be very difficult to perform on a satisfactory basis. A single bylaw increase would make actuarial findings gross understatements of cost and liabilities. Practically all of the fire and police funds of the state now operate at the maximum limits permitted. ►.;� If this fund should do as already noted, norma2 cost would be approx- imafely 40'� of covered paymll plus, for financino purposes, payments � on the deficit sufficient to amortize in 20 years, pius the costs of volunteers' benefits. The alternative to such extreme latitude to � involve public expense granted to an association of employees would be to set levels of benefit by statute which would require statutory amendments to change benefits . m � �. E, F' � FM/ed t w r u r.m y� € . � . �,� �.j ..�' t � ;� i �� � � s y� 1� .f � �� � � � i � � � r �� ' ;:� �% .ne � aisi�.� Y � � �� s � � �' � � : �� �� � � � _�� k , f :) , _— '.�„� � .� �_ �% � .� __ The results of thc 1967 actuazial surveys of police and firc pension funds in Minnesota were recently re- leased, and the figures reveal continuing increases in the actuazial deficits for practically all the funds since the last survey three years ago. The surveys were com- pleted for the Legisladve ReUrement Smdy Commission pursuant to Laws 1967, Ch. 729. Results of the firemeds fund survey are given on page 286 and the policemen's [unds survey on page 288. Similar figures iesul6ng from the sur- vey conducted in 1958, the first time all such funds. had been subjected to an actuarial survey, appeared in the August 1958 15SU0 Of MINNESOTA MUNICIPALITIES, p. 227. The 1965 survey results were reported in the February 1966 issue, p: 40. It should be noted that ttte 1967 �gures of costs of financing these funds are based on an assumed average annual pay increase of 3%, although indications are that in recent years actual salary increases have exceeded that 5gure. Survey re- sul[s reported in the August, 1958, and February, 1966, issues OE MINNESOTA MUNICIPALI'f1E5 (Iid not include an assumed annual salary increase, but 1966 supplemen- tary reports based upon the same assumed annual salary i�crease were prepared for the commission and publish- ed in the February, 1967, 1SSUE Of MINNESOTA MUNCI- PALITIES. TI10 1964 figures given in the tables publishad in this issue are taken from the supplemental reports and therefore are comparable in this respect to the 1967 figures. The entire question of full funding as opposed to paztial funding or completely pay-as-you-go funding con- tinues to be the subject of substa�Ual debate. A redre- ment plan is /uIly funded when it contains an amount equal to the aceumulation (under the assumpfions made) of the normal costs for each member from the date of hiring to the date of valua.tion. This accumula- tion, referred to in the 1958 tables as "required re- serve", is referred to in the present tables as "accrued LOUIS CLAESON, JR. Staff Attorney liability." Future conKibutions to a retirement plan which is fully funded will require no larger than the normal cost currently paid by aIl active members for Ihe pra speclive benefits (if the assumptions made ate realized exacUy). Pay-as-you-go involves placing in the pension fund each year only enough money to match the amount paid out for pensions in that yeaz plus administrative costs. However, the eventual annual cost of a typical pay-as-you-go plan will be about iwo and one-half times the normal cost of a fully funded system, since, among other reasons, no interest is accruing. Partial junding or accumulating more than enough to pay annual costs, but less than enough for future costs, will result in an annual wst somewhere between these extremes. It ap- pears that a few of the funds, notably the Mankato Fire Fund, are on somewhat less than a pay-as-you-go basis. Benefits in the Mankato fund exceed annual support by about $27,000 ($41,247 to $14,833). Assets have di- minished since 1964. and now total $85,000. It is in- teresting to note that for all 23 firemen's funds, total Uenefits paid ($3,241,559) exceeded total support ($3,190,324) by $51,235. The 31 police funds were reported at just about a break even point - total support exceeded total benefits by $1,328. Valuations were required by the law to be made by the "entry age normal cosY' method, under which a normal cost corresponding to the hiring age of each member is determined. This normal cost is the annual deposit required (under the assumpdons outlined) from the date of hiring to the date of retirement to pay for the cost of the members' prospective benefits. None of the Minnesota funds has followed the pra,o- tice of full funding with the result that the surveys show an actuarial deficit, that is, an excess of the iequired reserve over the actual asse[s of the fund for almost all of the funds surveyed. As the tables indica.te, how- ever, the amount of the deficit and the proportion of assets to the required reserve vary widely among the funds studied. The aggregate of the 23 firemen's funds had a required reserve (accrued liability) of $102,370,451 and assets of $4,440,721, leaving an act- uarial deficit of �97;926,730. This compares with cor- responding figures for 22 funds 3 ycars ago of 590,- 121,533 accrued liabilities, $3,812;842 assets and $86,- 308,691 actuarial deficit. The 31 policemen's funds show a comparable picture: $111,791,1fi9 in requited reserve, $5,851;003 in assets and an actuarial deficit of $105,940,166. The corresponding fig�res in 1964 for 29 funds were $99,487,659 in required reserve, $5,018,300 in assets, and an`actuarial deficit of,$94,- 469,389. E In addition ro the current normal wst of the fund, the 1967 1aw, like the corresponding pcovisions of pre- vious legislation, requires the actuarial survey to deteo- mine the addi[ional annua4 contribution necessazy to relire or eliminate the deficit by 1997. If experience followed ihe outlined assumptions, payment of this amount in addition to the normal cost would result in full funding after this period, fqllowing which no more than the normal cost would be required each year to eontinue this system indefinitely. As in 1958 and 1964; the survey shows wide varia- tion among the funds in the degree to which 1967 pay- mll support would be adequate to pay normal cost and eliminate the deficit over a, 40-year period. This amount of support was given in both 1964 and 1967 for only one police fund (Hibbing) and in 1967 for only two itremen's funds (Moorhead and Virginia). All others fell short of the amount necessary: In the aggregate, 73.69% of payroll (60.96% in 1964) would be necessary to achieve this goal in ffie case of firemen's funds, 70.69% (63.04% in 1964) in the case of police funds accord- ing to the tables. Actual support was $3,190,324 (26.0%) for firemen's funds, and $3,125,423 (20.5%) for the police funds. Again, those percentages are wr- resgondingly higher than those reported in M[tvxesotn MUNICIPALITIES 1R 1958 and 1954 because of the 3% annual wage increase assumption. A number of factocs contribute to the 5nancing problem faced by most of the funds surveyed. Among the irnportant ones are these: 1. Benefits provided are much more liberal and therefore more costly than for public employees under other funds, such as PERA. Typically, retirement at half salary (40% of salary in a very few fu�ds) is per- mitted at 50 years (55 yeacs in a few funds) after 20 years of service as compared to 65 years after 30 years of service under the post-1957 PERA plan.' Of.[en other benefits, such as those payable to widows, aze also more liberal and therefore add to the cost. 2. The employee's share of the cost is generally less than under such plans as PERA. Usually the em- ployee's contribution is 4% or 5%, some are as low as 2%. 3. The employer's share is not expressed in terms of payroll but rather in millage. This may bring in much more money from employers in one community with a high assessed valuation than from those in another with the same number of covered employees, but a lower valuation. 4. The statutory policy of imposing monetary limits on the reserve in the funds has often forced i�creases in actuarial de5cits year by year. When the limit is reached under almost all of the siatutes, employers' sup- port foc the fuad is cut back until the fund is aga.in brought below the maximum. Obviously, this makes it impossible for any fund ro become fully (unded. * And 5$ years aftec 25 years of service under the public safety fund within PERA fund. The PERA pub- lic safety fund is financed by a. contribution toward cuo- ient costs of 6 percent by the employee, 9 percent by the employer. Far 17 of the police funds and 13 of the firemen's funds tlse actuarial pic[ure is deteriora[ed by the existence of a special feature, the so-called "escalator clause." Under this provision, a retired member's pension is based not on his salary at retirement or at any time dur- ing his own career, but on �he salary being paid an active patrolman or fireman at the time the pension benefit is paid. Pensions ace ihus adjusred upward or dow�ward whenever current salaries are increased or decreased. It is exuemely difficult if not impossible to predict bene- fits accurately under the escalator plans. However, the 1967 surveys have attempted to measure liabilities due to escalator provisions by means of the 3% assumed annual increase in pay scales discussed eadier. In any event, it is obvious that an escalated plan must have additional financing to cover the increases resulting from an escalator dause. A comparison of the original and supplemental 1966 reports showed that for almost all the escalated funds the normal cost was at least doubled by the inclusion in the plan of the escalator provisions. The adverse financial effects of escalator clauses is fur- ther demonstrated by the fact tha.t none of the police and fire fu�ds which received support sufficient to pay the normal cost of the fund and to eliminate the deficit over a 40-year period have escalator provisions. In fact, no "escalated" fund even a.pproached an adequate level of financing in 1967. Since these automatic pension increases are entirely unfunded costs, they represent an immediate deficit to the fund and, like other deficits, musk eventually be paid by the employing municipalities. Policemen's and firemen's groups strongly endorse escala,tor clauses on the ground that t6ey provide desirable protection to annuitants against inflation by increasing the pensions of those already retired, and accomplish automatically what other pensioo plans have often secured through legislation. While over all, the 1967 surveys indicate that the majoriry of police and fire pension funds aze ia adverse financial condition, it should be pointed out that these tabulations do not take into account Yhe full impact of a number of speciai laws passed in 1967 which serve to improve the financial outlook for a number of the funds. For example, employee contiibutions and author- ized milt levies were increased for certain firemen's funds including Faribault, St. Cfoud, St. Louis Park, St. Paul and Winona. Similar increases were authorized for the Minneapol'�s and West St, Paul policemen's funds. In addition, special legislation increasing em- pioyee contributions to 6% and direcYing the govem- ing bodies of the municipatities concerned to levy amounts sufficient [o amorti2e existing deficits wi[hin 40 years was enacted for the Brooktyn Center police and fire funds, the Moorhead police fund and the Rich- 6eld fire fund. A subcommittee of the Legislative Retirement Study Commission, under the chlirmanship of Senator William Dosland of Moorhead, set up prior to the 1967 session to study police and firemen's pension funds and recom- mend appropriate legislation, is continuing its studies in the area and wili teport to the 1969 Legislature. The [.eague Committee on Personnel, Pensions and Insur- ance also ga.ve this subject substantial attention, and its recommendations are incorporated in the League legislative proposals. ■ ' ' ' 1 MEMO T0: City Manager and City Council FROM: Finance Director SUBJECT: Pnoposed Legislation for the Fridley Fire Relief Association ' I met recently with Senator Tom Greig and �'rank Moulton, Chairman, Legislative Retirement Study Commission, concerning the proposed bill for the Fridley Fire Relief Association. Senator Tom.Greig stated he will sponsor the bill provided the City Council passes another resolution in which they acknowledge the fact that they realize what the cost of the pension system is and agree that they are willing to pay the cost. He cannot, of course, guarantee that it will pass. The bill as originally dra£ted would require a contribution o£ approximately forty percent of salary to finance. If the legislature were to ask the Legislative Retirement Study Commission for an opinion on the bill as drafted, they would have to state that it would be under-financed. It is my understanding that the bill is now being reworked to provide benefits which are not as costly as originally proposed. There is one other change that Mr. Moulton recommended outside of the area of benefits, and that is, that approval of four-fifths of the Council would be necessary to change the benefit structure, or make any other changes in the bylaws. The bill as presently written requires just a majority of the Council voting on the question. There are several basic formulas used in computing retirement systems for police and fire funds. Four are listed below: Plan 1. Retirement at one-half of career average salary after twenty years of service with a minimum age of fifty years. Cost: Approximately nineteen percent of salary. Plan 2. .Retirement based on fifty percent of the ending salary or the last salary of the person retiring rather than the average salary. Cost: Twenty-eight percent of salary. . Plan 3. Retirement based on fifty percent of the last five years of employment with retirement at age fifty-five. Cost: Approximately twenty-six percent of salary. Plan 4. Retirement based on what is called the escalator clause. This retirement plan is based on fifty percent of the salary of a first class fire fighter currently working. It would increase for all persons on pension each time a raise was given to a,first class fire fighter who is currently employed by the City. Cost: Forty percent of salary. That is, if a person � Page 2. Proposed Legislation for the Fridley Fire Relief Association � ' ' Plan 4. (Continued) were earning $600 per month, you would have to put forty percent of that amount each month into the pension system to finance it. All of the above percentage figures are taken from the letter from the Legislative Retirement Study Commission dated March 4, 1969. ' As a comparison, it costs twelve percent of salary to finance the pension fund that the regular City employees are on, plus an additional two and one- . half percent to make up the deficit in the PERA Fund (six percent from employee and eight and one-half percent from City). It costs fifteen percent , of salary to finance the PERA plan for the police and fire (six percent from employee and nine percent from City), plus an additional two and one- half percent to make up the deficit from prior years in the fund. The Fridley Police Pension Fund is on what is known as the fu11 escalator clause. That is, when a policeman starts drawing retirement pay, his retire- ment will be based on what a policeman working at the time is getting. The people on the pension will receive an increase each time the policemen who are working receive an increase. It costs approximately forty percent of salary to fund a pension system that pays fifty percent oF salary after twenty years of service with retirement at age £ifty according to the Leg' islative Retirement Study Commission. The formula that the Fridley Police Department is on would pay 46.66°5 of salary at age fifty with twenty years of service. This means that the obligation accruing during the year 1969 for the Police Department would be approximately $80,016.67. The City and the Police Department are actually contributing $27,967.92. The difference of $52,048.75 is a deficit we are building up each year which will have to be repaid in future years, plus the interest we are not earning in the meantime. (The above deficit should be reduced by the amount of interest earned during 1969 by the pension fund.) The Police Pension Fund has further complications in that the policemen were originally under the PERA plan. They then set up their own pension fund and voted to give themsleves credit for the number of years they had under the PERA system. The men received a refund of the money they put in the PERA system. Part of this money was put into the Police Pension Fund and part was retained by the employees. The actual amount contributed to the pension fund is approximately 1.6% of salary for each of the years for which they are giving themselves credit. According to Mr. Moulton's figures, it costs approximately thirty-seven percent of salary to finance the fully escalated plan that the Police Department is on. All of this deficit which has already been incurred by the Police Pension Fund is a deficit that will have to be paid in future years. None of this discussion on the Police Pension Fund bears any particular rela- tionship to the Fire Pension Bill, other than to give you an idea of the impact of a fully escalated pension system. 2 Page 3. Froposed Legislation for the Fridley Fire Relief Association � Another comparison of pension costs and benefits is as follows: Regular City Employees on PERA COST City - Ba% of Salary Employee - 6 0 of 5alary Total - 14�% of Salary PERA City - 11'�$ of Salary Police & Fire Employee - 6$ of Salar� Plan Total - i7-2$ of Salary Proposed Fridley Fire Relief Bill Fridley Police Retirement City - 20$ of Salarys` Empl�ee - 6$ of Sala�� Total - 26$ of Salary�� City - 33$ of Salary;'� Employee - 4$ of Salar�%� Total - 37$ of Salary* RETIRENfENT BENEFITS Retirement age - 65. With 30 years service, retirement would be 38.5$ of career average salary. Retirement age - 58. With 20 years of service, retiremen` would be 40$ of career average salary. With 30 years of service, retirement would be 60$ of career average salary. Retirement age - 55. With 20 years of service, 50$ of average salary for last 5 years of employment. Retirement age - 50. Full escalator plan. With 20 years of service,46.6% of salary of currently employed first grade patrolman. With 27 years of service, 56% of salary of currently employed first grade patrolman. �Estimated - based on Mr. Moulton's figures. The Fire Pension Bill as it is'being redrafted would cost approximately twenty-six percent of salary. It should be borne in mind that the employees themselves vote on changing the rules and they can be changed at any time. This is why the provision 'is so important that at least four members of the City Council concur on any changes in the bylaws of the organization. Mr. Moulton did have one other comment, and that was regarding the possibility of actually setting up a separate fund for the paid men. The idea of this would be so that if the pension system for the paid men were finanaially unsound, it would not endanger the rights and benefits built up by the volunteers. The men who had time coming while volunteers then would get a pension for those years based on volunteer basis, and wouTd not be given credit for those years of service in the pension system for paid men. This idea has merit. The present bill would also raise the pension for volunteers to $100 per month with twenty years of service. March 21, 1969. , MINNESOTA CHAMBr^,R OF GOIvIi+IEP,CES FOR SPLTT-LIQUOR Recommended change in House Amendmant to S. F. #271 lat - 2nd - 3rd - 4th class Cities, Villagas & Boroughs Total number of Licenses allowed: MINIMUM LICENSr,S - 4 MAXIMUN LICENSES - 12 1 lioense issued for every 2,500 Population 1 private on-or-off sale license = 1 1 municipal on-or-off sale license c 1 Total licensas - - 2 • This means each private and municipal license count as 1 until tha ma�cimum # of 12 is reached. I am highly in favor of this. Sen,Tom Greig � �r� Chairman..��� �,. �� D� .r^,/f'� R. C. {Bob) Reddick � _ _.. � APPLICATION FOR BUILDING YERMIT CITY OF FRIDLEY, MINNESOTA , j� C<i �' - � OWNETi'3 NAME, ��,', '� ; � i'�'�°<'t'� BIIIf:DER ,f �" : A�DRESS � �- � : i, : � -�+�"-���% ADDRESS �:�r i,�i� , / �% LOCATION OF BUILDIIQG /l'�l i!'ff'j ('-_i./a_' !_. N0. STREE'P '' '� �"` \ � LOT BLOCK ADDITION OR SII3DIVISION CORNER. LOT INSIDE LOT SEPBACK SIDEYARD SEWEft ELEVATION TOP OF FOOTING Applicant attach to this form Two Certificates of Survey of Lot and proposed building location drawn on these Certificatea. ' DE5CRIPTION OF BUILDING To Be IIsed As: ' _ �!C',�C , CsL''/t`/� % • � �-,' � r i� �ont = � ` Depth ��l'. ,-, Height � % �c Square feet '' �': " Cubic Feet %' �'< %�" Fro.nt Depth Height ' Square feet Cubic Feet %:i-_ /i'ii�-` �r�..;ij_, Type of Co.nstructio.n- '`!"� Estimated Cost � To Be Completed /'�/ r` `''-% ' The underaigned hereby makes application £or a permit for the work herein apecified, agreeing to do all work in strict accordance with the City of Fridley Ordinances and rulings of the Department of Buildings, and hereby declares that all the £acts and repre�entations stated in ' this applicatio.n are true and correct. ��- � ._ �_/ �.� �� � l:-C t_ C.:��zj� . D9TE � �� � �` ;� S3GNATURE !/ ! � 'J ' -- _ /- � ' ' � � ' :j-��, ��..,.��. (Schedule of Fee Costs can be found on the Reverse Side.� - No fee necessary as council allowed the structureto remain in place. 5 6 CONTRACTORS LICENSE TO BE APPR0�IED BY COUNCIL AT THE MARCH 31, 1968 MEETING GEIiERAL CONTRACTOR APPROVED BY a C. F. Haglin & Sons Co. 4005 West 65th St. Minneapolis, Minnesota By: R. A. Roberts NEW BLDG, INSP. 0 PUBLIC WORKS DEPARTMENT CITY OF FRIDLEY MEMO T0: Homer R. Ankrum, City Manager MF�fO FRAM: Lester E. �hesney, Director of Public Works DATE: March 31, 1969 SUBJECT: Hiring of Street Maintenance Man I request that Mr. Joseph G. Gonsior of 6210 - 6th Street Northeast, Fridley, Minnesota be appointed to the Street Crew, starting at $606.00 per month. He is thirty-six years old and has been very steady in his employment with his present employer. � � e.ir.n1. LESTER E. CHESNEY Director of Public War LEC:ik SY > 'r / t' . .. . . . . ^C/�.� 0 MEMO T0: City Manager and City Council ' FROM: Marvin C. Brunsell, Finance Director SUBJECT: REC Charges - Proposed Engineering Bvilding, FMC Corporation In their letter dated March 27, 1969 FMC Corporation is asking that they be exempt €ram the provisions of Resolution /t61-1967 providing for BEC charges for alt buildings. I feel this is a reasonable request inasar�ch as their sewage does not go through our sewer system but through a separate sewage facility. They apparently are cailling to pay the REC charges if their sewage would be diverted to the North Suburban�Sanitary Se�aer ➢istrict System on a permanent basi:s. . � , ����' 1y FMC CORPORATION NORTHERN� ORDNANCE DIVISION COLVMBIA AEIGHT3 POST OFFICE, MINNEAPOLI9, MINNE80TA 6542� • 1'ELEPHON&: (ela) ]88-eeOl 1- 27 March 1969 City of Fridley Fridley City Hall 6431 University Avenue N.E Fridley, Minnesota Attention: Mr. Marvin C. Brunsell City Clerk Re: Proposed Engineering Building FMC Corporation, Northern Ordnance Divi�ion, Fridley, Minnesota On March 20, 1967 the Council of the City of Fridley adopted Resolution No. 61-1967 establishing permit fees and connection charges for instal- lation of sewage disposal facilities and water supply facilities, This resolution establishes certain connection charges and fees in connection with charges to the City of Fridley by the North Suburban Sanitary gewer District for outlet into their sewage disposal facilities. In order to raise the money to pay said outlet charges the resolution provides for connection charges on new industrial establishments, We wish to call your attention to the fact that the subject proposed engineering building is an addition to an existing building and does not constitute a new industrial esta6lishment. Also, FMC Corporation and the U. S. Government plant at this location dispose of their sewage througk the Minneapolis sewage facilities under an agreement with the Gity of Minneapolis dated November 18, 1940. The new building �ddition will use the existing sewage facilities connecting to the Minneapolis sewage systezn. No use of the North Suburban Sanitary Sewage facilities will be made at this time. Accordingly, any charges in connection with the North Suburban Sanitary Sewer District System should be deferred until such system is actually used at this location. 4` . City of Fridley 27 March 1969 Page Two Under the foregoing circumstances, we believe that the resolution and charges referred to are not applicable in connection with the proposed engineering building. We plan to proceed with the building addition and will very much appreciate written advice from an authorized representa- tive or agency of Fridley that the charges referred to in the above resolution are not applicable in this situation. Very truly yours, �Y-F�_�.� �vSw� �-1: Wheeler Smith Attorney V1S:cs � RESOLUTION td0. 6Z - i967 A RESOLUTION ESTABLISHTNG FEFiMIT FEES AND CONNECTION CFIARGES FOR IN- STALLATION OF SEU7AGE bISPOSAL FACILITIES AND WATER SUPPLY FACILITTES. BE IT RESOLVED, bp the Council o£ the City of FridleX, Anoka County, Minnesota, as foll.aas: �REAS, the City of Fridley has constructed an intesnal system of main� and laterals to collect sanitary sewage, and WH�REAS, the City of Fridley is a member of the North Suburban Sanitary Sewer District, and WHEREAS, the City of Fridley is obligated to pay to the North Suburban Sanitary Sewer District certain charges in order to outlet into the District's main lines, and WHEREAS, the Council finds that it is necessary to raise a portion of the money necessary to pay said outlet charges by estab- lishing a connection charge on new residential, com-nercial, and industrial establishments. � NGW, THEREFORE, BE IT RESOLVED, that the fo7.lowing connection . charges are hereby adopted for the Sanitary Sewer System in those areas of the City of Fridley,wherein an assessment covering the estimated cost of the City's Sanitary Sewer System has been previously assessed: � 1. Single Family DwelZings,.,.......o...e.$ZOOv00 2. Multiple Residential- Dwellings....o....$ 75.00 per residential unit, 3. Commercial and Industrial Establishments...A minimum fee of $200,00 plus $200.00 for each additional REC over the fizst equivalent REC as determined by the North Suburban Sanitary Sewer District less a credit of $300.00 per acre of prope•rty used by the comrnercz.al or industrial interprise and in no case shall the credit exceed the minimum comiection chasge. B�.I� FUR�HER RESOLVED, that the £ollowing connection charqes are hereby adopted for the Sanitary Sev�er System in those areas of the City of Fridley, described belo�a, which have not been fully assessed to cover the estimated cost ot the City's Sanztary Sewer System: . `,� �: :.` RESOLUTIQN NO. 61 - 1967 (COntinuedj 1. Single Family Dwellings.......ovo...o.....$150.00. 2. Multiple Kesidential Dwellings............$112.50 per residential unit. 3. Commercial and Industrial Establzshments...A minimum fee o£ $200.00 plus $200.00 for each additional REC over the fixst equivalent REC as determined by the North 5uburban Sanitary sewer District less a credit of $100.00 per acre of property used by the commerciai or industrial enierprise and in no case shall the credit exceed the mini.mum connection charge. Descri.ption of area `in City of Fridley not fully assessed for Sanitary Sewer System: All that area in the City of Fridley lying West of University, Nort.h of 69th Avenue and East oi the Northern Pacific Railroad x'ight-of-way, , , . All that area lying South of 73rd Avenue, 6Vest af the Ramsey County line, East of Universi�cy Avenue, and North of the follow- �' ing descri.bed line, cominencing at University Avenue and 69th { -" Avenue Nortlzeast,.then East on 69th Avenue extended to its intez=, section with Rice Creek, then East along Rice Creek to its inter- section with the Ramsey County line. (Except that area assessed for Sanitary Sewer biains under Project No. 24). BE IT FURTHER RESOLVED, that the following permit fees be established: 1. For the installation of a City sewage disposai system,.$20.00 2, ,For the installation of a City water supply system,....$10.00 ADOPTED BY TiiF CITY COUNCIL OF THE CITY OF FRIDLEY THIS 20TH DAX OF MARCH, 19670 , . � � �� O ���� . MFIYOR - Jack Oo Kirkham ATTEST: ° �Y'��,�:..,�u,� n�.�,. CITY C -- Marvin.C, Brunsell i .� � ro � o a � a o � N � N � � N � � N O C N b N � E N = �N Q w N N C* a a : y d � >. 4 � a �� � - "� w w M � � m 1 1 � 4 O m ' U.Ni � v ro a E F oa ez+ v w EQ T N L �ri q O ^ E�o° c a 4 F m N d O � U y AF � G � OC' 'n z � 0 G� O � a � a y I � Ni H .�. O Q y N Q nN � N �\ a �/ � V I � . 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