08/12/1996 - 4859�
'� � FRTDLEY CITY COUNCIL MEETING
cinroF
F�IX-� ATTENDENCE SHEET
Manday, Au u�5� 12, 1996
�:30 P.M.
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C1TY QF
FRIDLEY
FRIDLEY CITY COUNCIL MEETING OF
AUGUST 12, 1996
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 disabiliries who require auxiliary aids should contact Roberta Collins at 572-3500 at least one week in
advance. (TTD/5'72-3534)
PLEDGE OF ALLEGIANCE:
APPROVAL OF MINUTES;
City Council Meeting of July 22, 1996
APPROVAL OF PROPOSED CONSENT AGENDA:
NEW BUSINESS:
Establish a Public Hearing for
August 26, 1996, to Consider the
Application ofi Main Event for an
Intoxicating Liquor License (7850
University Avenue N.E.) (Ward 3)
.............. 1.01
FRIDLEY CITY COUNCIL MEETING OF AUGUST 12, 1996 PAGE 2
APPROVAL OF PROPOSED CONSENT AGENDA:
NEW BUSINESS (CONTINUED�
Resolution Authorizing Changes in
Appropriations for the Genera) Fund,
Cable T.V. Fund, Grant Management
Fund, HRA Reimbursemen# Fund,
Drug and Gambling Forfeiture Fund,
Housing Revitalization Fund and the
Capitai Improvement Fund for the
Year 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.0'I - 2.06
,�
Resolution Approving a Third
Suppiemental Indenture of Trust
and a Second Amendment to Loan
Agreement Regarding the City's
Commercial Deveiopment Revenue
Bonds (Fridley Business Plaza
Limited Partnership Project) and
Other pocument Relating Thereto
3.01 - 3.04
Resolution Designating Polling Pfaces
and Appointing Election Judges for the
September 10, 1996, Statewide Primary
Election . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.01 - 4.04
FRIDLEY CITY COUNCIL MEETiNG OF AUGUST 12, 1996 PAGE 3
APPROVAL OF PROPOSED CONSENT AGENDA•
NEW BUSINESS (CONTINUED)•
Resolution Modifying the Redevelopment
Plan for Redevelopment Project No. 1
and the Tax Increment Financing Plans
for Tax Increment Financing Districts
Nos. 1-3, 6, 7, 9-14 (Ward 3) . . . . . . . .
......... 5.01-5.04
Resolution Authorizing Municipal State �
Aid Funds to County State Aid Highway
(C.S.A.H. '10�) Osborne Road - Old
Centrai #o Stinson Boulevard (CP 91-08-108)
(S.A.P. 127-020-18) (Ward 2) . . . . . . . . . . . . . . . . . 6.01 - 6.02
Resolution to Appoint an Emergency
Management Director for the City
of Fridley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.01 - 7.02
Resolution Authorizing Agreement
with the State of Minnesota for
Furnishing HaZardous Materials
Emergency Response Service . . . . . . . . . . . . . . . . . 8.01 - 8.25
FRIDLEY CITY COUNCIL MEETING OF AUGUST 12, 1996 PAGE 4
APPROVAL OF PROPOSED CONSENT AGENDA:
NEW BUSINESS (CONTINUED�
Claims .................................... 9.01
Licenses ................................. 10.01-10.04
Estimates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 a01
ADOPTION OF AGENDA:
OPEN FORUM, VISITORS:
(Consideration of ftems not on Agenda - 15 Minutes)
FRIDLEY CITY COUNCIL MEETING OF AUGUST 12, 1996 PAGE 5
NEW BUSINESS:
Resolution Consenting to the Housing
and Redevelopment Authority in and
for the City of Fridley Adopting 1996
Tax Levies Collectible in 1997 . . . . . . . . . . . . . . . . . . . . . 12.01 - 12.20
Informal Status Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.01
ADJOURN:
f R[DLrY C[TY COUNC[L MEETtNG Of' ,AUCl1ST 12, 1996
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FRIDLEY
Tlie City of Pridley will not discriminate against or harass anyone in the admission or access to, or treahnent, or employment in its secvices,
programs, or activities because of race, color, creed, religion, national origin, sex, disability, age, marital status, sexuai orientation or status
witl� regard to public assistance. Upon request, accommodation will be provided to allow individuals with disabilities to participate in
any of Frid(ey's services, programs, and activities. Hearing impaired persons �vho need an interpreter or other persons wit6 disabilities
who require auxiliary aids should contact Roberta Collins at 572-3�00 at least one week in advance. (TTD/572-3534)
PLEDGE OF ALLEGIANCE-
APPROVAL OF MINUTES:
City Council Meeting of July 22, 1996 "Q "'°�
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APPROVAL OF PROPOSED CONSENT AGENDA•
NEW BUSINESS:
Establish a Public Hearing for
August 26, 1996, to Consider the
Appficatidn of Main Event for an
lntoxicating Liquor License (7850
University Avenue N.E.) (V1/ard 3) 1_01
.�- �-� . �-� �vd/y�.
Resolution Authorizing Changes in
Aporopriations for the Generat Fund,
Cable T.V. Fund, Grant Management
Fund, HRA Reimbursement Fund,
Drug and Gambling Forfeiture Fund,
Housing Revitatization �und and the
Capital Improvement Fund for the
Year 1995 . . . . . . . . . . . . . . . . . . 2.01 - 2.06
o�-��-�-� �C�-
Resolution Approving a Third
Supplemental Indenture of Trust
and a Second Amendment to Loan
Agreeme�t Regarding the City's
Commercial Development Revenue
8onds (Fridley Business Plaza
Limited Partnership Project)
and Other pocument Relating
Thereto ....................
� �z
NEW BUSINESS LCONTINUED)•
Resolution Oesignating Polling Places
and Appointing Election Judges for the
September 10, 1996, Statewide Primary
Election . . . . . . . . . . . . . . . . . . . . 4.01 - 4.04
G�—�`- :�z� �/`�- -
�-,-_-,-�-� � .
7rt ,v�=�°`� S`�`"-� .
Resolution Modifying the Redevelopment
Plan for Redevelopment Project No. 1
and the Tax Increment Financing Plans
for Tax Increment Financing Districts
Nos. 1-3, 6, 7, 9-14 (Ward 3) .... 5.01 - 5.04
�—.,.�i�c�-� ��— '
ResolUtion Authorizing Municipal State
Aid Funds to County State Aid Highway
(C.S.A.H. 108) Osborne Road - Old
Central to Stinson Boulevard (CP 91-08-108)
(S.A.P. 127-020-18) (Ward 2) . . . 6.01 - 6.02
�,c��� �
Resolution to Appoint an Emergency
Management Director for the City
of Fridley . . . . . . . . . . . . . . . . . . . 7.01 - 7.02
��_-�i6'�l'��` /�-� ,
Resolution Authorizing Agreement
3.01 - 3.04 with the State of Minnesota for
Furnishing Hazardous Materials
cmergency Response Service .. 8.01 - 8.25
��� � �
�
APPROVAL OF PROPOSFC) CONSENT /�GENDA:
NEW SUSlNESS (CONTINUE��
Claims . . . . �/6� ``�•�� 9.01
Licenses . c'. . . ���10.01 - 10.04
~'��......
Estimates _ . . `��!t'`�4'��� 11.01
ADOPTiON OF AGENDA:
s�-� ��.�
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OPEN FORUM. ViSITORS:
(Consideration of Items not an Agenda - 15 Minutes)
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L- 2 �.,�--.
NEW BUSINESS:
Resolution Consenting to the Housing
and Redevefopment Authority in and
� for the City of F�idley Adopting 1996
Tax Levies Collectible in 1997 . . . . . . . . . 12.01 - 92.20
� C_,�2, :�c� �? z .
��.
Iniorma! Status Reports . . . . . . . . . . . . . . . 13.01
�. ���..�,
AOJOURN:
�`,` � � /° i�-�/ ,
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THE MINUTES OF THE REGULP.R MEETING OF THE FRIDLEY CITY COUNCIL OF
JULY 22, 1996
The Regular Meeting of the Fridley City Council was called to order
by Mayor Nee at 7:56 p.m.
PLEDGE OF ALLEGIANCE:
Mayor Nee led the Council and audience in the Pledge of Allegiance
to the Flag.
ROLL CALL: .
MEMBERS PRESENT: Mayor Nee, Councilwoman Jorgenson, Councilman
Billings, Councilman Schneider and Council-
woman Bolkcom
MEMBERS ABSENT: None
APPROVAL OF MINUTES:
COLTNCIL MEETING, JULY 8, 1996:
MOTION by Councilwoman Jorgenson to approve the minutes as
presented. Seconded by Councilman Schneider. Upon a voice vote,
all voting aye, Mayor�Nee dec:lared the motion carried unanimously.
APPROVAL OF PROPOSED CONSENT AGENDA:
NEW BUSINESS:
1. RECEIVE THE MINUTES OF THE PLANNING COMMISSION MEETING OF
JULY 10, 1996:
RECEIVED THE MINUTES OF THE. PLANNING CONa�IISSION MEETING OF
JULY 10, 1996.
2. SPECIAL USE PERMIT, SP #96-12, BY DAT TRAN, TO ALLOGV ACCESSORY
BUILDINGS OTHER THAN THE FIRST ACCESSORY BUILDING, O�TER 240
SQUARE FEET, GENERALLY LOCATED AT 7300 EAST RIVER ROAD N.E.
( WARD 3 ) :
Mr. Burns, City Manager, stated that this is a request for a
special use permit to allow construction of a 24 foot by 24 by
26 foot second accessory structure. Staff originally
recommended denial due to the age and non-conforming status of
the main structure. The petitioner, however, agreed to remove
the hard surface adjacent to the existing garage, leaving only
one driveway. Therefore, approval is recommended.
GFtANTED SPECIAL USE PERMIT, SP #96-12, WITH THE STIPULATION
THAT THE PETITIONER SHALL REMOVE THE HARD SURFACE PARKING AREA
ADJACENT TO THE DWELLING UNIT AND THIS AREA SHALL BE RE-SODDED
OR SEEDED.
FRIDLEY CITY COUNCIL MEETING OF JULY 22, 1996 PAGE 2
3. APPROVE COMPREHENSIVE SIGN PLAN FOR THE GYM, LOCATED AT 6525
UNIVERSITY AVENUE N.E. (WARD l):
Mr. Burns, City Manager, stated that with the addition of a
third tenant to this property, the code requires the
submission of a comprehensive sign plan. The proposed new
sign is to be a four foot by eight foot internally lit cabinet
sign. The total square footage of signage complies with the
ordinance requirements for wall signage, and staff recommends
approval.
APPROVED THE COIrIPREHENSIVE SIGN PLAN FOR THE GYM, 5525
UNI�IERSITY AVENUE N.E.
4. FIRST READING OF AN ORDINANCE TO REPEAL -0RDINANCE NO. 1062
PERTAINING TO VACATION OF A DRAINAGE AND UTILITY EASEMENT
(INDUSTRIAL EQUITIES, 73RD AVENUE AND NORTHCO DRIVE) (WARD 1):
Mr. Burns, City Manager, stated that Ordinance No. 1062 was
adopted by the Council on January 8, 1996 for the vacation of
a drainage and utility easement on property located near 73rd
Avenue. The legal description contained in the ordinance was
prepared by the petitioner's surveyor. It referred to a lot
and block description which was previously assigned to the
property. Because the property subsequently was platted, the
previous lot and block description does not coincide with the
description on the Torrens certificate. In order to correct
the legal description, Ordinance No. 1062 must be repealed,
and a new ordinance containing the corrected legal description
must be adopted.
WAI�TED AND READING AND APPROVED THE ORDINANCE ON FIRST
READING. .
5. FIRST READING OF AN ORDINANCE UNDER SECTION 12.07 OF THE CITY
CHARTER TO VACATE STREETS AND ALL•EYS AND TO AMEND APPENDIX C
OF THE CITY CODE (INDUSTRIAL EQUITIES, 73RD AVENUE F�ND NORTHCO
DRIVE
Mr. Burns, City Manager, stated that this ordinance provides a
corrected legal description of the Industrial Equities
easement vacation at 73rd Avenue and Northco Drive.
WAIVED THE READING AND APPROVED THE ORDINANCE ON FIRST
READING.
6. RECEIVE BIDS .AND AWARD CONTRACT FOR THE MISSISSIPPI STREET AND
THIRD STREET INTERSECTION IMPROVEMENT PROJECT N0. 96-04
(WARD 1):
Mr. Burn�>;� City Manager, stated that bids were opened on
June 20. Four bids were received for the Mississippi Street
and Third Street intersection improve.nent. The low bidder was
FRIDLEY CITY COUNCIL MEETING OF JULY 22, 1996 PAGE 3
W.B. Miller, Inc. in the amount of $212,616.20. The original
estimate for this project was $162,237.69. The cost overrun
is a result of a combination of additional requirements by
Anoka County and current market conditions/pricing by
contractors. Of the $50,378.51 overage, the engineer is esti-
mating that approximately $26,000 to $34,000 is a result of
the County requiring complete remilling and sawcutting of the
pavement at the intersection. Other factors affecting the
cost are a higher mobilization cost than originally antici-
pated; a higher per unit cost for asphalt because of the
increase in the cost for oil since last year; and the traffic
control requirements of the project itself total $5,000.
Mr. Burns stated that when the cost sharing agreement was
originally approved, it was understood that additional costs
would ultimately be the responsibility of the Housing and
Redevelopment Authority (HRA�. The HRA passed a resolution
agreeing to pay for all the additional costs in order to
proceed with the proj ect in a timely manner subj ect to staff
pursuing other contributions, if possible. The County is
processing a request to contribute an additional amount equal
to $20,000, and Holly Center has been contacted to determine
its willingness to contribute an additional amount toward the
project. Rottlund Homes indicated that they cannot contribute
additional funds due to unanticipated utility and other costs
for the site preparation.
Mr. Burns stated staff xecommends that the bid be awarded to
W. B. Miller, Inc. in the amount of $212,616.20.
RECEIVED THE FOLLOWING BIDS FOR THE MISSISSSPPI STREET AND
THIRD STREET INTERSECTION IMPROVEMENT PROJECT NO. 96-04: W. B.
MILLER, TNC., $212,616.20; MIDWEST ASPHALT CORP., $214,977.40;
ALBER ASPHALT CO., $217,949.40; AND LAND DAR, INC.,
$255,302.10. AWARDED THE CONTRACT TO THE LOW BIDDER, W. B.
MILLER, INC. IN THE AMOUNT OF $212,616.20, CONTINGENT UPON
APPROVAL BY THE MINNESOTA STATE AID OFFICE.
7. RECEIVE BIDS AND AWARD CONTRACT FOR 1996 STREET IMPROVEMENT
PROJECT N0. ST. 1996 - 1& 2:
Mr. Burns, City Manager, stated that bids were opened on
July 18 for the 1996 Street Improvement Project No. ST. 1996 -
1& 2. The project includes reconstruction of Alden Way from
Rickard Road to 79th Way; East River Road to the Burlington
Northern tracks; sewer diversion from East River Road to the
Metropolitan Waste Environmental Services interceptor; and
miscellaneous overlays. Six bids were received, and the low
bidder was Thomas and Sons Construction, Inc. in the amount of
$527,183.64. It is recommended that the contract be awarded
to Thomas and Sons Construction contingent upon approval of
the plans and specifications by the Minnesota State Aid
Office.
FRIDLEY CITY COUNCIL MEETING OF JULY 22, 1996 PAGE 4
RECEIVED THE FOLLOWING BIDS FOR THE 1996 STREET IMPROVEMENT
PROJECT NO. ST. 1996 - 1& 2: THOMAS & SONS CONSTRUCTION,
INC., $527,183.64; W. B. MII.I.ER, IN., $549,859.75; HARDRIVES,
INC., $554,528.94; MIDWEST ASPHALT, $595,725.90; VALLEY PAVING
COMPANY, $611,657.65; AND C.S. MCCROSSAN CONSTRUCTION, INC.,
$623,710.70. AWP.RDED THE CONTRACT TO THOMA.S & SONS
CONSTRUCTION, INC. FOR $527,183.64, CONTINGENT UPON APPROVAL
BY THE MINNESOTA STATE AID OFFICE.
8. APPROVE CHANGE ORDER NO. S FOR 1995 STREET IMPROVEMENT PROJECT
N0. ST. 1995 - 1& 2:
Mr. Burns, City Manager, stated that this change order is to
allow B-624 curb and gutter rather than B-618 in order ta
provide consistent curb and gutter style along University
Avenue. The additional cost is $4,956 which is borne by the
State. Staff also recommends approval.
AUTHORIZED CHANGE ORDER NO. 5 FOR 1995 STREET IMPROVEMENT
PROJECT NO. ST. 1995 - 1& 2 WITH HARDRIVES, INC. IN THE
AMOUNT OF $4,956.00.
9. RESOLUTION NO. 48-1996 AUTHORIZING THE POSTING OF "NO PARKING"
SIGNS ON ONE SIDE OF A CERTAIN MSAS STREET (ALDEN WAY FROM
RTr-�unur� pnnr� mn '7amu a�s�rrr�� lG7Z1DT� �t .
Mr. Burns, City Manager, stated that in order to obtain State
Aid funding for the Alden Way improvements, the City must post
"no parking" on one side of the street. The east side of the
street will be posted with "no parking" signs, and staff
recommends adoption of this resolution.
ADOPTED RESOLUTION NO. 48-1996.
10. RESOLUTION NO. 49-1996 AUTHORIZING CHANGES IN APPROPRIATIONS
FOR THE GENERAL FUND FOR TI�E SECOND QUARTER dF 1996:
Mr. Burns, City Manager, stated that this resolution is to
amend appropriations to the 1996 budget which have arisen as a
result of donations, unforeseen expenditures, and reclassifi-
cation of account codings.
ADOPTED RESOLUTION NO. 49-1996.
11. APPROVE SPECIAL ASSESSMENTS FOR OSBORNE COMMERCE CENTER
( WARD 3 ) :
Mr. Burns, City Manager, stated that Steiner Development,
Inc., on behalf of Consolidated Container, is constructing a
101,600 square foot m�lti-tenant office warehouse project or{
the northwes� corner of Osborne Road and Main Street. About
half of the building will be occupied by Gazda Mayflower.
FRIDLEY CITY COUNCIL MEETING OF JULY 22, 1996
PAGE 5
Mr. Burns stated that the developer has submitted a letter
requesting that only the interest costs of the original
assessment be spread over ten years. A reduction of the
assessment is not requested. Storm sewer improvements were
assessed to the site as part of the Commerce Lane portion of
the 1989 street improvement project. This assessment roll was
adopted in 1990. It is for a ten .year period which ends in
the year 2000 at 8-1/2 percent interest.
Mr. Burns stated that Steiner Development is proposing to pay
the total interest of $21,250.17 over ten years with annual
payments of $2,125.02. This proposed request will not result
in any financial loss to the City given the size of the
project and the property taxes. There would also be no impact
to the Housing and Redevelopment Authority's budget.
APPROVED AND DIRECTED STAFF TO PREPARE AN ASSESSMENT ROLL
WHICH SPREADS THE $21,250.17 INTEREST AMOUNT OVER A TEN YEAR
PERIOD.
12. APPROVED 1996/1997 ANIMAL CONTROL CONTRACT BETWEEN THE CITY OF
FRIDLEY AND SKYLINE VETERINARY HOSPITAL:
Mr. Burns, City Manager, stated that the City's current
contract with the Skyline Veterinary Hospital expires on
July 31. The new contract provides a two percent increase
from $1,250 to $1,275 per month. The Police Department is
satisfied with the services provided by Skyline Veterinary
Hospital, and staff recommends approval of the contract.
APPROVED THE 1996/1997 ANIMAL CONTROL CONTRACT BETWEEN THE
CITY AND SKYLINE VETERINARY HOSPITAI� AND AUTHORIZED THE
APPROPRIATE OFFICIALS TO EXECUTE SAME.
13. CLAIMS:
AUTHORIZED PAYMENT OF CLAIM NOS. 68987 THROUGH 69237.
14. LICENSES:
APPROVED THE LICENSES AS SUBMITTED AND AS ON FILE IN THE
LICENSE CLERK'S OFFICE.
15. ESTIMATES:
APPROVED THE ESTIMATES, AS FOLLOWS:
Richmar Construction, Inc.
7776 Alden Way, N.E.
Fridley, MN 55432
53rd Avenue Booster Station
Project No. 280
Estimate No. 3 . . . . . . . . . . . . . . . $22, 365.85
FRIDLEY CITY COUNCIL MEETING OF JULY 22, 1996
Hardrives, Inc.
14475 Quiram Drive
Rogers, MN 55374-9461
1995 Street Improvement
Project No. ST. 1995 - 1& 2
Estimate No. 5 . . . . . . . . . . . . . . . $30, 401.23
Landmark concrete, Inc.
17630 Highway 65
Ham Lake, MN 55304
1996 Removal & Replacement
Concrete Curb and Gutter
Project No. 294
Estimate No . 2 . . . . . .
of Miscellaneous
and Sidewalk
. . . . . . . . $ 3, 669.37
PAGE 6
No persons in the audience spoke regarding the proposed consent
agenda items.
MOTION by Councilwornan Bolkcom to approve the consent agenda items.
Seconded by Councilman Schneider. Upon a voice vote, a11 voting
aye, Mayor Nee declared the motion carried unanimously.
ADOPTION OF AGENDA:
MOTION by Councilman Billings to add a: resolution agreeing to and
authorizing execution of a recreational facility cooperative'
agreement between the City and School District No. 14 for the joint
use of Hayes Elementary School. Seconded by Councilwoman
Jorgenson. �IJpon a voice vote, all voting aye, Mayor Nee declared
the motion carried unanimously,
MOTION by Councilman Billings to adopt the agenda with the above
addition to be added before the Open Forum segment of the agenda.
Seconded by Councilman Schneider. Upon a voice vote, all voting.
aye, Mayor Nee declared the motion carried unanimously.
15A. RESOLUTION NO. 50-1996 AGREEING TO AND AUTHORIZING EXECUTION
OF A RECREATIONAL FACILITY COOPERA�IVE AGREEMENT BETWEEN THE
CITY OF FRIDLEY AND SCHOOL DISTRICT NO. 14 FOR THE JOINT t7SE
OF HAYES ELEMENTARY SCHOOL IN THE CITY OF FRIDI,EY:
Mr. Burns, City Manager, stated that the intent of this resolution
is to authorize entering into an agreement with School District
No. 14 joint use of the Hayes Elementary gymnasium. The agreement
specifies the terms for joint use and the City's contribution for
financing 420 square feet of gymnasium space ($42,000); the
difference in cost between a hardwood gymnasiuni floor and a tiled
floor ($33,000); additional costs for construeting a 240 square
foot warming house ($24,000); and a$10,000 contingEncy. In the.
event these items exceed $109,OOD, the City will have the right to
FRIDLEY CITY COUNCIL MEETING OF JULY 22, 1996 PAGE 7
rescind its participation in this agreement by giving notice within
fourteen days of the official bid opening for the project.
Mr. Burns stated that the agreement is for thirty years and would
automatically renew on an annual basis until the school district or
City terminates the agreement. He reviewed the terms for construc-
tion; maintenance, repairs and destruction of improvements; use of
the premises; fees; insurance; utilities; and indemnification.
Mayor Nee asked if the facility would be available for use by
senior citizens.
Mr. Burns stated that the City wouid schedule some open recrea-
tional use. If senior citizens want to use the gym, there is
nothing in the agreement that would preclude them from using this
facility.
Councilwoman Jorgenson stated that the use of the gymnasium would
be for all residents of the City.
Councilman Schneider asked if it was the City's intent to schedule
non-organized time as well as time for organized activities.
Mr. Burns stated that it would be the City's intent to schedule
time for unorganized as well as organized activities..
MOTION by Councilman Billings to adopt Resolution No. 50-1�996 and
authorize the appropriate officials to execute the agreement.
Seconded by Councilwoman Jorgenson.
Councilman Schneider asked if the resolution had to be read since
it was not an official agenda item.
Mr. Knaak, City Attorney, stated that Council can waive the reading
by a motion. Past practice of the Council is that resolutions have
not been read, but the title could be read.
MOTION by Councilman Billings to amend the motion by waiving the
reading of this resolution and agreement between School District
No. 14. Seconded by Councilman Schneider. Upon a voice vote, all
voting aye, Mayor Nee declared the motion carried unanimously.
Councilman Billings stated that the essentials of the resolution
and agreement have been adequately explained by the City Manager.
Mr. Burns stated that the school board has asked for a vote this
evening so they can begin the bidding process in August and open
bids in September. If Council does not take action, it will not
give the school district time to assemble their drawings and
specifications. The school district feels that the bids will be
better if bid at this time.
FRIDLEY CITY COUNCIL MEETING OF JULY 22, 1996 PAGE 8
Councilwoman Jorgenson stated that she and Councilman Billings have
been working with the school district on this issue. Also, Jack
Kirk and Karen Schaub have been working on the cooperative
agreement, and the process has been ongoing for several months.
Councilman Schneider felt it was critical that even though all
residents in Fridley can use this gymnasium, the City's investment
should be protected. If the agreement should terminate, the
building should be appraised, and a pro-ra�ed share of the City's
investment of the value.of the building should be returned to the
City.
Councilwoman Boikcom felt that the City would want to continue the
use of the gymnasium until it no longer exists or the City no
longer needs the facility. The relationship between the school
district and the City is excellent.
Councilman Schneider stated that he felt the relationship between
the school board, City Council, and City staff is excellent. He
would not have a concern if he knew this would continue for the
term of the agreement. However, circumstances may change, and the
City Manager has drafted language in an attempt to resolve this
concern.
MOTION.by Councilman Schneider to amend the agreement by deleting
the following language, under Section 2, Term of the Agreement:
"If District at any time determines that the Hayes Elementary
School is no longer necessary or suitable to operate as an
elementary school it may, solely at its option, close, lease or
convey the school, and this agreement wili be amended as follows:
If the District decides to maintain and operat� the school for
other District purposes or to lease the school, this Agreement will
continue according to its terms. If the District decides to convey
the school, a share of the selling price that represents the
remaining value of the improvements paid for by City under Section
3B of this Agreement will be returned to the City from funds
received by District in the sale. In no event shall the return of
funds to the City, under this paragraph or any other provision of
this Agreement, exceed the City's initial contribution for
construction under Section 3B. If the District decides to close
the school, the City will have the option to continue to operate,
at its sole expense, that part of the school necessary to continue
the terms of this Agreement." Further, the following language is
to be substituted: "In the event that the District for any reason
terminates the agreement, the District and the City will jointly
hire an appraiser to appraise the remaining value of the building.
The District will reimburse the City for a portion of this value
based on the City's proportion. on the initial investment in the
gymnasium. In no case will the District's reimbursement exceed the
City's original investment." Seconded by Couneilwoman Bolkcom.
�
FRIDLEY CITY COUNCIL MEETING OF JULY 22, 1996 PAGE 9
Councilman Billings stated that over the last several weeks staff
has worked closely with the school district to reach some
parameters for an agreement which was passed on to the attorneys
for review. Perhaps the City Attorney should comment on the
language and how it would be perceived by the school district.
Mr. Knaak stated that the point should be clarified on the intent
of the language with respect to the method of valuation on the
City's portion of the overall investment. He suggested that the
language in Section 2 be clarified in the second to the last line
by substituting the words "of the overall investment in the
gymnasium," rather than the words "on the initial investment in the
gymnasium."
COUNCILMAN SCHNEIDER WITHDREW HIS MOTION, WITH PERMISSION OF HIS
SECONDER COUNCILWOMAN BOLKCOM.
MOTION by Councilman Schneider to amend the agreement by deleting
the following language, under Section 2, Term of the Agreement:
"If District at any time determines that the Hayes Elementary
School is no longer necessary or suitable to operate as an
elementa�y school it may, solely at its option, close, lease or
convey the school, and this .agreement will be amended as follows:
If the District decides to maintain and operate the school for
other District purposes or to lease•the school, this Agreement will
continue according to its terms. If the District decides to convey
the school, a share of the selling price that represents the
remaining value of the improvements paid for by Gity under Section
3B of this Agreemerit will be returned to the City from funds
received by District in the sale. In no event shall the return of
funds to the City, under this paragraph or any other provision of
this Agreement, exceed the City's initial contribution for
construction under Section 3B. If the District decides to close
the school, the City will have the option to continue to operate,
at its sole expense, that part of the school necessary to continue
the terms of this Agreement." Further, the following language is
to be substituted: "In the event that the District for any reason
terminates the agreement, the District and the City will jointly
hire an appraiser to appraise the remaining value of the building.
The District will reimburse the City for a portion of this value
based on the City's proportion of the overall investment in the
gymnasium. In no case will the District's reimbursement exceed the
City's original investment." Seconded by Councilwoman Bolkcom.
Upon a voice vote, all voting aye, Mayor Nee declared the motion
carried unanimously.
Councilman Schneider stated that it is not his intent to be argu-
mentative, but he has had discussions with residents outside of
School District No. 14 regarding the spending of tax dollars. He
felt, therefore, that this language was needed to rightfully
address the concerns of taxpayers that are not in School District
No. 14.
FRIDLEY CITY COUNCIL MEETING OF JULY 22, 1996
PAGE 10
UPON A ROLL CALL VOTE ON THE MAIN MOTION, Councilman Billings,
Councilwoman Jorgenson, Mayor Nee, Councilman Schneider, and
Councilwoman Bolkcom voted in favor of the motion. Mayor Nee
declared the motion carried unanimously.
Councilwoman Bolkcom stated that the City Manager was to take this
resolution and agreement to the school board at their meeting which
is in progress.
At this time, Mr. Burns left the meeting to deliver these documents
to the school board at their meeting.
OPEN FORUM, VISITORS:
MS. JAN JOLLY, REPRESENTING SACA:
Ms. Jolly, representing SACA, thanked Council for their appropria-
tion of CDBG funds for SACA. SACA serves Fridley, Columbia
Heights, Hilltop, and a portion of Spring Lake Park. SACA is
hurting for funding, and they have put out a mailing appealing to
businesses for contributions. They receive funds from AAGAP and
the County, as well as Columbia Heights, Spring Lake Park, Hilltop,
Fridley, and area churches.
Ms. Jolly stated that the City of Columbia Heights donates the home
where the food shelf is located and pays for the electricity,
water, sewer,_ and heat.., The Public Works Department in Columbia
Heights maintains� grounds and plows the snow. She felt that
Fridley should try to find fundir�g for SACA, as they serve almost
as many Fridley residents as Columbia Heights residents. At this
time they are in the red by $4,372. She submitted a copy of their
proposed budget.
Councilwoman Jorgenson requested that SACA provide a breakdown on
what Fridley contributes as a community. _
Councilwoman Bolkcom suggested to Ms. Jolly that she contact the
group associated with the Values Program.
PUBLIC HEARINGS:
16. PUBLIC HEARING ON AN ORDINANCE AMENDING SECTION 2.06.01 OF THE
FRIDLEY CITY CHARTER:
MOTION by Councilman Billings to waive the reading of the public
hearing noticed and open the public hearing. Seconded by
Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor
Nee declared the motion carried unanimously and the public hearing
opened at 8:55 p.m.
Mr. Champa, City Clerk, stated that this is a public hearing for an
. amendment to Section 2.06.01 of the City �harter. The Charter
Commission addressed �his proposed amendment over the past year and
FRIDLEY CITY COUNCIL MEETING OF JULY 22, 1996 PAGE 11
passed it at their January meeting. The amendment removes the
words "without good cause," which would make it possible for the
Council to declare a vacancy in the event a council member was not
performing any of the duties of inembership in the Council for a
period of three months.
Councilman Schneider questioned whether the language accomplishes
what is intended. He reads the language that if a councilmember
does not do just one thing, a vacancy could be declared.
Ms. Mau, past Chairperson of the Charter Commission, stated the
intention was that if a council member could not perform any of the
duties, he could be removed.
Councilman Schneider asked if this section would apply if, for
example, a council member could read the minutes, give input,
consult with the City Manager, converse by phone, but could not
attend a Council meeting.
Ms. Mau stated that this would not apply. The intent of this
section was if a council member did nothing.
Councilman Schneider felt that the language should be further
clarified.
Mr. Knaak, City Attorney, stated that deleting the words "without
good cause," eliminates a council member's defense.
Councilman Billings stated that the Charter does not now provide
any mechanism for a member to be removed who is incapacitated. He
felt that the Charter Commission was looking for a way to try to
accommodate this issue. In the final analysis, it seems to make
sense to eliminate the words "without good cause." If a council
member is incapacitated or not present to provide the leadership
for the City, the question is if that council member has the
responsibility to the voters to resign so the Cit� can proceed to
have an election ta find someone that can carry out these duties.
By striking "without good cause" the Council is taking away the
defense. If a council member is not doing his job, he is not
representing the citizens who elected him, and the Council then has
to make the decision to declare a vacancy.
Councilman Schneider asked if Council would take action if a person
is unable to remove himself because he is totally incapacitated
could not choose to resign. He felt the language should be very
precise.
Councilwoman Bolkcom stated that if a council member was to be
removed from office either because he was not performing his duties
or because he was incapacitated, all of this would have to 3�e
reviewed.
FRIDLEY CITY COUNCIL MEETING OF JULY 22, 1996
PAGE 12
Councilman Schneider raised some hypathetical issues relating to
removal of a council member strictly for political gain. He felt
that the,language should be drafted carefully so there is no room
for abuse.
Councilman Billings stated that it seems clear to him that failure
of any council member to perform any of the duties of inembership ot
the Council is reason for removal.
Mr. Knaak stated that he is not sure that removal of the words
"without good cause" would accomplish the intended purpose. He
would suggest insertion of the language "because of incapacitation
or absence from the City". He wondered about the legal reason for
not inserting that specific language, but he is not suggesting it
was something that was missed.
Ms. Mau stated that there are many reasons that would have to be
listed for a council member to not be capable of performing any of-
his duties. It was felt that the language in this ordinance summed
it up pretty well.
Councilman Schneider felt that the purpose of the language is to
cover a situation where, due to total disability or incapacitation,
a council member was not able to resign. He agrees 100 percent
with this concept, but he is philosophically opposed that the
Council can take action.
Mr. Knaak stated that if it is the intent to focus on the issue of
incapacitation, he would suggest the words "because of incapaci-
tation" be added after the words "three months" at the end of the
next to the last line of this proposed amendment.
Councilwoman Jorgenson stated that Council does not have the
ability to amend the Charter Commission`s proposed amendment.
Ms. Mau stated that she car� bring this suggestion back to the
Charter Commission.
Councilman Schneider felt that there are two issues. He agrees
with the Charter Commission's concern how to handle incapacitatian,
but he did not feel the language is precise enough. He stated
that, with the other incidents, he has a philosophical difference.
As long as there is recall, malfeasance, and non-feasance, he felt
Council should not be involved.
Councilman Billings stated that he does not want to minimize the
ability of the electorate to remove someone from office; however,
this is a very cumbersome course. The way he interprets the
language, it would be a situation where someone either throuqh
incapacitation or through wi�.?ful neglect did not perform ``yhe
duties of their office and could be remov?d. Council would be
taking an action that they felt would be ir� the best interests of
the City. If Council obviously did something that is inappro-
FRIDLEY CITY COUNCIL MEETING OF JULY 22, 1996 PAGE 13
priate, this would be handled by the electorate in the forthcoming
election. The language is there. It has been there for some forty
years and has not been willfully abused by any Council in the past.
Because of the way the state statutes are structured, Council does
not have the ability to make amendments. They either accept or
reject the amendments submitted by the Charter Commission.
Councilman Schneider stated that the Charter is an area where they
have to exercise extreme diligence. If, in fact, they are trying
to cover more than the incapacitation issue, he has a problem with
it. He would like to see another proposal to tighten up the
language. He is not quite sure how to resolve the philosophical
difference.
No persons in the audience spoke regarding this proposed Charter
amendment.
MOTION by Councilman Schneider to close the public hearing.
Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting
aye, Mayor Nee declared the motion ca-rried unanimously and the
public hearing closed at 9:45 p.m.
17. PUBLIC HEARING ON AN ORDINANCE AMENDING CHAPTER 3 OF THE
FRIDLEY CITY CHARTER:
MOTION by Councilman Schneider to waive the reading of the publie
hearing notice and open the public hearing. Seconded by
Councilwoman Bolkcom. Upon a voice vote, all voting aye, Mayor Nee
declared the motion carried unanimously and the public hearing
opened at 9:45 p.m.
Mr. Champa, City Clerk, stated that the Charter Commission has
spent the last three years reviewing this chapter on Council
procedure. The amendments accomplish the following: clarifies
first Council meeting of the year; allows for notifying council
members of ineetings in ways other than written notice (i.e.,
electronic mail or �-mail); however, the twelve hour notice
requirement remains intact; clarifies a quorum and majority; and
removes excessive language or changes language slightly without
altering the meaning or intent. He reviewed all the proposed
changes by each section which included meetings, quorums,
ordinances, resolutions, and motions.
Councilman Schneider asked the reason for reducing the number from
three to two members of the Council that may call a special
meeting.
Councilman Billings stated that in January, the Charter Commission
requested that representatives of the Council meet with them. He
and Councilwoman Bolkcom were present when this particular language
was discussed. This was prior to when Mr. Champa was appointed as
liaison to the Charter Commission.
FRIDLEY CITY COUNCIL MEETING OF JULY 22, 1996 PAGE 14
Councilman Billings stated that i� was the Charter Commission's
feeling that if two members of the Council felt something was so
important that it necessitated a special meeting, their options
should be honored. If there was a majority controlling the agenda
and items that a minority felt were important, this would provide
the means to call it to the attention of the public by calling a
special meeting.
Councilman Schneider asked if the language regarding the violation
of an emergency ordinance was necessary.
Ms. Mau stated that this section is merely clarified and makes it
easier for the general public to understand.
No persons in the audience spoke regarding this proposed Charter
amendment.
MOTION by Councilwoman Bolkcom to close the public hearing.
Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting
aye, Mayor Nee declared the motion carried unanimously and the
public hearing closed at 10:02 p.m.
18. PUBLIC HEARING ON ADDING AN ADDITIONAL -PARCEL TO REDEVELOPMENT
PROJECT AREA NO. 1 FOR WALLBOARD, ZNC. (WARD 3):
MOTION by Councilwoman Bolkcom to waive the reading of the public
hearing notice and open the public hearing. Seconded by
Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor
Nee-declared the motion carried unanimously and the public hearing
opened at 10:04 p.m.
Ms. Dacy, Community Development Director, stated that this parcel
is proposed to be added to Redevelopment Project Area No. 1 in the
Great Northern Indust'rial Park south of I-694. The purpose of the
public hearing is to comply with state law when a City adds to a
redevelopment area. This is not to establish a tax increment
financing district but would place the parcel in the redevelopment
project area. This would permit the Housing and Redevelopment
Authority to promote development opportunities to add tax value,
create jobs and diversify the tax base.
Ms. Dacy stated that Wallboard, Inc. suppiies building materials to
general contractors, drywall contractors, and the general public.
They are proposing to construct a 30,000 square foot building at a
cost of approximately $1,�50,000. They currently employ 27
persons. They anticipate this number to rise to 32-34 in one year
and to 40-45 in five years. Since 1984, the company has tripled in
size, and their.sales volume is $8,000,000.
Ms. Dacy stated,,;that at their June 13 .meeting, the HRA directe�'
staff to add this to the redevelopment area and to negotiate a
development contract for an $85,000 loan to be repaid at five-
percent over a ten-year period with a personal guarantee from the
FRIDLEY CITY COUNCTL MEETING OF JULY 22, 1996 PAGE 15
owner. Unfortunately, the owner had another commitment and had to
leave the meeting.
No persons in the audience spoke regarding the addition of this
parcel to Redevelopment Project Area No. 1.
MOTION by Councilwoman Bolkcom to close the public hearing.
Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting
aye, Mayor Nee declared the motion carried unanimously and the
public hearing closed at 10:10 p.m.
At this time, the City Manager, Mr. Burns returned to the Council
meeting. He stated the school board, with great enthusiasm,
approved the agreement for joint use of the Hayes Elementary School
gymnasium. They will be sending a letter indicating that the
language does not apply to false situations and are not insisting
it be part of the agreement.
NEW BUSZNESS:
19. SPECIAL USE PERMIT, SP #96-13, BY SAMIR AWAIJANE, TO ALLOW A
REPAIR GARAGE AND TO ALLOW AUTOMOBILE AGENCIES SELLING OR
DISPLAYING NEW AND/OR USED VEHICLES ON PROPE�ZTY GENERALLY
LOCATED AT 970 OSBORNE ROAD N.E. (WARD 2):
Mr. Hickok, Planning Coordinator, stated that this is a request for
a special use permit for agencies selling or displaying new and/or
used motor vehicles and for a repair garage. The property is
approximately 24,000 square feet, and this request is consistent
with the general business zoning. Staff reviewed the request for a
2,800 square foot building for auto repair and recommends approval
with 19 stipulations. The Planning Commission also concurs. One
provision dealt with the variance to the setback. However, the
petitioner has agreed to move the building, and the variance is not
needed.
Councilman Schneider clarified that a variance was no longer needed
since the building will only be used for mechanical repair.
Mr. Hickok stated that there would be muffler repair and minor auto
repairs but no body work.
Councilwoman Bolkcom questioned how no test driving of cars in the
adjacent residential neighborhoods would be enforced.
Mr. Hickok stated that this should be made clear to the customers.
If the petitioner does not adhere to the stipulations, the special
use permit could be revoked for non-compliance.
Ms. Dacy stated that if staff receives any complaints, it would be
the basis for a revocation hearing.
FRIDLEY CITY COUNCIL MEETING OF JULY 22, 1996 PAGE 16
MOTION by Councilman Schneider to concur with the recommendatian of
staff and the Planning Commission and grant Special Use Permit,
SP #96-13, according to the site plan dated July 7, 1996, with the
following stipulations: (1) a final grading and drainage plan and
calculations shall be submitted prior to issuance of the building
permit. The petitioner shall comply with all stipulations recom-
mended by the City engineering staff upon review of the final
grading and drainage plans; (2) the petitioner shall apply for and
receive the appropriate permits from Anoka County for work in the
road right-of-way; (3) all signs shall comply with the city Sign
Code; (4) all vehicles shall be entirely parked on a surface of
asphalt or concrete, which shall be lined with concrete curb; (5)
all lighting shall be downcast and shielded against horizontal
glare; {6) the landscape plan shall be reviewed and approved by the
City planning staff prior to issuance of a building permit; (7) the
site plan shall be modified so that the southwest corner of the
building meets the 25 foot setback; {8) a performance bond of 3% of
the construction value of the project shall be submitted prior to
issuance of a building permit; {9) the petitioner shall execute and
record a storm water maintenance agreement for the property; (10).
the petitioner shall grant the City a 30 foot drainage and utility
easement along the south property line; (11) no vehicles shall be
parked in locations on site, other than parking stalls that have
been striped and meet the code-required minimum standards for
parking stalls; (12) repair activity beyond the scope of this
application shall constitute the necessity for an additional
special use permit: (13) the use shall not provide for the outdoor
operation of lubricatian equipment, hydraulic lifts or service
pits; or the outdoor display of inerchandise; (14) the property
shall not be used as a place ot storage or depository of wrecked,
abandoned or junked motor vehicles; (15) all vehicles associated
with this use must be parked on site. Automobiles being serviced
may be parked for a maximum period of 48 hours at any one time;
(16) the use of streamers, pennants, and flags is prohibited; (17)
the petitioner shall comply with the temporary sign ordinance for
all temporary signs on the property; (18) the petitioner shall
apply for and receive the appropriate City car sales license; and
(19) there shall be no test driving of cars in the adjacent
residential neighborhoods. Seconded by Councilwoman Bolkcom. Upon
a voice vote, al1 voting aye, Mayor Nee declared the motion carried
unanimously.
20. ESTABLISH PUBLIC HEARING FOR AUGUST 26,1996, FOR REVOCATION OF
SPECIAL USE PERMIT, SP #95-05, �'O HOME DEPOT, GENERALLY
LOCATED AT 5650 MAIN STREET N.E. (WARD 3):
Mr. Hickok, Planning Coordinator, stated that at the July 8 Council
meeting staff was directed to take a stern approach to assure
compliance with Home Depot's special use permit. Staff is
recommending August 26 as the public hearing date to consider
revocation of the s�ecial use permit far the garden center at Home
Depot.
FRIDLEY CITY COUNCIL MEETING OF JULY 22, 1996 PAGE 17
MOTION by Councilwoman Bolkcom to set the public hearinq date of
August 26, 1996 to consider revocation of Special Use Permit,
SP #95-05, for Home Depot. Seconded by Councilman Schneider. Upon
a voice vote, all voting aye, Mayor Nee declared the motion carried
unanimously.
21. APPROVE HOUSING ACTION PLAN FOR THE CITY OF FRIDLEY:
Ms. Dacy, Community Development Director, stated that the purpose
of the Livable Communities Act is to encourage affordable housing
opportunities in the metropolitan area. The Metropolitan Council
has also established financial incentives for housing and
redevelopment programs for communities who participate in the
program.
Ms. Dacy stated that the purpose of the Housing Plan is to show how
the City intends to maintain its benchmarks, as agreed to by the
Council when they adopted a resolution to participate in 1995.
These benchmarks are affordability, life-cycle housing, and
density. This Plan reviews the demographic data, existing
programs, housing opportunities, and identifies specific objectives
the City should pursue in order to maintain the benchmarks. The
Plan has been reviewed and recommended for approval by the Human
Resources Commission, the Planning Commission, and the,HRA. The
Planning Commission, h�wever, was not in agreement with providing
additional three to four bedroom non-affordable units.
Ms . Dacy stated that the obj ectives in the Plan are not mandates,
the Metropolitan Council merely comments on the Plan. The plan
summarizes twelve objectives for further consideration by the City.
1"n summary, the thrust of the information is that the City should
maintain a balance of affordable housing and increase non-
affordable ownership and rental units in excess of $115,000 and
$500 in rent per month. The City needs to look at continued
rehabilitation efforts and continue construction programs.
MOTION by Councilwoman Jorgenson to approve the Housing Action Plan
and direct staff to forward it to the Metropolitan Council.
Seconded by Councilman Schneider.
Councilwoman Bolkcom asked if the Metropolitan Council could make
the City accomplish what is in the plan.
Ms. Dacy stated that this Plan is only for the Metropolitan
Council's comments, but they do have input on the Housing Chapter
of the City's Comprehensive Plan.
Councilman Schneider stated that this Plan was mandated, but he
questioned if it was beneficial for staff.
Ms. Dacy stated that this information is very valuable for staff.
FRIDLEY CITY COUNCIL MEETING OF JULY 22, 1996
PAGE 18
UPON A VOICE VOTE TAKEN ON THE ABOVE MOTION, all voted aye, and
Mayor Nee declared the motion carried unanimously.
22. INFORMAL STATUS REPORTS:
Mr. Burns, City Manager stated that there were two items to be
discussed after this regular meeting. One item is the proposed
development on the property south of Wal-Mart, and the other item
is budget revenue and expenditure adjustments.
ADJOURNMENT:
MOTION by Councilwoman Jorgenson to adjourn the meeting. Seconded
by Councilman Schneider. Upon a voice vote, all voting aye, Mayor
Nee declared the motion carried unanimously and the Regular Meeting
of the Fridley City Council of July 22, 1996 adjourned at
10:36 p.m.
Respectfully submitted,
Caro•le Haddad
Secretary to the City Council
William J. Nee
Mayor
0
CITY OF FRIDLEY
M E M O R A N D U M
TO: WILLIAM W. BURNS, CITY MANAGER �
�� Y
FROM: RICHARD D. PRIBYL, FINANCE DIRECTOR
WILLIAM A. CHAMPA, CITY CLERR
SUBJECT: ESTABLISH A PUBLIC HEARING FOR MAYN EVENT FOR AN
INTORICATING LIQUOR LICENSE
DATE: AUGUST 7, 1996
Main Event has purchased T.R. McCoys/Longhorn Grill, located at
785o University Avenue Northeast, and has applied for an
Intoxicating Liquor License.
Pursuant to.Chapter 603 Section .07 of the Fridley City Code, we
are required to hold a public hearing before issuing this license.
As a result, we would like to establish a public hearing for Main
Event on August 26, 1996.
The Police Department is in the process of performing the
background investigation on Main Event and those results wi11 be
available for the public hearing.
1.01
TO: WILLIAM W. BIIRNS� CITY MANAGER ��'
l
FROM: RICHARD D. PRIBYL, FINANCE DIRECTOR
BIIBJECT: MODIFICATION3 TO TH8 1995 BIIDGET
DATE: July 23, 1996
Attached you will find a resolution amending the estimated revenues
and appropriations to the 1995 budget in accordance with the City
Charter.
The adjustments listed have arisen as a result of donations,
unforeseen expenditures and items budgeted in the wrong categories.
All adjustments have either been informally approved by you through
the Budget Reappropriation Form or made to eliminate negative �
variances on the Comprehensiv� Annual Financial Repart. We request
that Council approve the amendment of the attached budgets.
RDP/hdk
Attachment
�.O �
RESOLUTION # - 1996
A RESOLUTION AUTHORIZING CHANGES IN
APPROPRIATIONS FOR THE GENERAL FOND, CABLE T.V.
FUND, GRANT MANAGEMENT FUND, SOLID WASTE
ABATEMENT FIIND, HRA REIMBIIRSEMENT FUND, DRIIG
AND GAMBLING FORFEITIIRE FIIND, HOU3ING
REVITALIZATION FUND AND THE CAPITAL IMPROVEMENT
FUND FOR THE YEAR 1995.
WHEREAS, the Government Finance Officers Association requires that
alI line items within divisions reflect favorable account balance
in the Comprehensive Annual Financial Report; and
WHEREAS, the City of Fridley has involved itself in initiatives
that provide for future charges and modifications that will allow
for a better delivery of service, and
WHEREAS, the City of Fridley had not incorporated these and other
necessary changes into the adopted budget for 1995.
NOW, THEREFORE, BE IT RESOLVED that the budgets of the following
funds and divisions be amended as follows:
REVENUE ADJUSTMENTS
DONATION - POLICE
DONATION - POLICE
DONATION - POLICE
DONATION - POLICE
DONATION - POLICE
DONATION - POLICE
DONATION - POLICE
DONATION - F1RE
DONATION - FIRE
DONATION - FIRE
DONATION - FlRE
DONATION - RECREATION
DONATION - RECREATION
DONATION - RECI�EATION
DONATION - RECREATION
DONATION - RECREATION
DONATtON - RECREATION
DONATION - RECREATION
CHARGES FOR SERVICES
CHARGES FOR SERVICES
INSURANCE REIMBURSEMENT
GENERALFUND
260
700
200
400
100
25
100
100
500
4,976
30
285
200
2,000
2,500
4,960
5,000
500
3,020
4,321
37,497
TOTAL REVENUE ADJUSTMENTS $67 674
�.0�
FRIDLEY MOOSE-NATIONAL NIGHT OUT
UNIT'ED & MERCY HOSP.-NAT'L NIGHT OUT
FRIDLEY VFW-pqRE PROGRAM
NORWEST BANK-DARE PROGRAM
KfWANIS-DARE PROGRAM
1ST COMMUNITYCREDIT UNION-DARE
ANOKA COUNTY-DAMqGE REPAIR
CUMMINGS ENGINE-PUBLIC INFORMATION
NEW BRIGHTON AERIE-PUBLIC INFO.
ANOKA COUNTY FOR DEFIBULATOR
MINNEGASCO FOR BROCHURES
CLIMB THEATER-ENTERTAINMENT IN PARK
AMERtCAN LEGION-SCHOLARSHIP
VFW-MISS FRIDLEY SCHOLARSHIP
�NAABI-'49ER �AYS
LIONS CLUB-SENlOR HOUDAY DINNER
LIONS CLUB-SENIOR TRANSPORTA710N
AMERICAN LEGION-'49ER DAYS
POLICE TES7ING FEES
HOME DEPOT REIMB. FOR TRAFFIC STUDY
PERMITS IN EXCESS OF BUDGET
GENERAL FUND CONTINUED
APPROPRlA7JON ADJUSTMENTS
CITY MANGAER
LEGAL
ELECTIONS
ACCOUNTING
ASSESSING
NONDEPARTMENTAL
POLICE
PERSONAL SERVICES
SUPPUES/CHARGES
SUPPLIES/CHARGES
PERSONAL SERVICES
SUPPUES/CHARGES
PERSONAL SERVICES
SUPPLIES/CHARGES
SUPPLIES/CHARGES
SUPPLIES/CHARGES
PERSONAL SERVICES
SUPPLtES/CHARGES
SUPPLlES/CHARGES
SUPPIJES/CHARGES
SUPPLIES/CHARGES
SUPPLIES/CHARGES
FlRE PERSONAL SEqVICES
PERSONAL SERVICES
PERSONAL SERVICES
PERSONAL SERVICES
SUPPLJES/CHARGES
SUPPLIES/CHARGES
CAPITAL OUTIAY
CAPITAL OUTLqY
RENTAL INSPECTIONS PERSONAL SERVICES
MUNICIPAL CENTER
ENGINEERING
PUBLIC WORKS
RECREATION
PLANNING
SUPPLIES/CHARGES
SUPPLIES/CHARGES
CAPITAL OUTLAY
PERSONAL SERVICES
SUPPUES/CHARGES
SUPPLIES/CHARC�S
SUPPUES/CHARGES
PERSONAL SERVICES
SUPPLIES/CHARGES
SUPPLIES/CHARGES
(1,632)
1,632
3,418
5,294
884
EUMiNATE NEGATNE VARIANCE
ELIMINATE NEGATIVE VARIANCE
ELIMINATE NEGATIVE VARIANCE
FUND STATE REPRESENTATIVE ELECTION
FUND STATE REPRESENTATlVE El.ECTION
(346) ELIMINATE NEGATIVE VARIANCE
346 ELIMINATE NEGATNE VARIANCE
1,878 EUMINATE NEGATNE VARIANCE
(1,87$) ELIMINATE NEGATNE VARIANCE
967 ELIMINATE NEGATNE VARIANCE
(967) EUMINATE NEGATNE VARIANCE
(3,418) EUMINATE NEGATNE VARIANCE
7,878 ADD'L UNEMPLOYMENT COSTS
1,785
3,020
(1 �464)
(67,277)
(5�)
(10,833)
1,464
630
540
4,976
10,833
DONATIONS FOR NATiONAL NtGHT OUT
RECRUIT TESTING FEES
ELIMINATE NEGATI�/E VARIANCE
EUMlNATE DOUBLE BUDGETfNG OF SALARtES
ELJMINATE NEGATNE VARIANCE
ELIMINATE NEGATNE VARIANCE
ELIMINATE NEGATNE VARIANCE
PUBLIC INFORMATION DONATIONS USED
ELIMINATE NEGATNE VARIANCE
DEFIBULATOR DONATION USED
ELIMINATE NEGATNE VARIANCE
13,668 EUMINATE NEGATIVE VARIANCE
4,958 COSTS FOR POLICE CLOSING
6,440 CARD ACCESS INSTALLATION
(3,787)
3,787
(13,668)
15,445
ELIMINATE NEGATIVE VARIANCE
EIJMINATE NEGATiVE VARIANCE
EUMlNATE NEGATIVE VARIANCE
49ER DAYS AND SENIOA DONATIONS USED
(27,209) ELJMINATE NEGATIVE VARIANCE
33,244 ELIMINATE NEGATNE VARIANCE
4,321 HOME DEPOT TRAFFIC STUDY
BUILDING INSPECTION PERSONAL SERVICES (1,729) ELIMINATE NEGATIVE VARIANCE
SUPPL(ES/CHARGES (4,306) EUMINATE NEGATIVE VARIANCE
SUPPI.IES/CHARGES 37,497 CONTRACT INSPECTION COSTS
2.03
GENERAL FUND CONTINUED
EMERGENCY RESERVE
TOTAL APPROPR1AT10N ADJUSTMENTS
REVENUE ADJUSTMENTS
LICENSES
INTEREST EARNtNGS
TOTAL FiEVENUE ADJUSTMENTS
APPROPRIATION AOJUSTMENTS
PERSONAL SERVICES
SUPPLIES/CHARGES
TOTAL APPROPRIATION ADJUSTMENTS
(6,440) CARD ACCESS 1NSTALLATION
(7,878) ADD'L UNEMPLOYMENT COSTS
67,277 ELIMINA7E DOUBLE BUDGETING OF SALARIES
(6,178) FUND STATE REPRESENTATIVE ELECTlON
(4,958) COSTS FOR POLICE CLOSING
$67.674
SPECIAI REVENUE FUNDS
CABi.E N �UND
(4,004)
16,898
$12.894
(1,147) ELIMINATE NEGATNE VARIANCE
1,147 EUMINATE NECATNE VARiANCE
$0
GRANT MANAGEMENT FUND
REVENUE ADJUSTMENTS .
INTERGOVERNMENTAL $44.048 UNBUDGETED ACTIVITY
APPROPRIATION ADJUSTMENTS
PERSONAL SERVICES 3,574 REALLOCATE BUDGET
SUPPIJES/CHARC-�S 44,048 UNBUDGETED ACTIVITY
SUPPLIES/CHARGES 117,014 REALLOCATE BUDGET
CAPITAL OUTLAY (120,588) REALLOCATE BUDGET
TOTAL APPROPRIATION ADJUSTMENTS $44.048
SOLID WASTE ABATEMENT FUND
REVENUE ADJUSTMENTS
DONATIONS 1,275 DONATIONS FOR CLEAN UP WEEK
MISCELLANEOUS 1,166 CLEAN UP DAY REVENUE
TRANSFER FROM OTHER
FUND 188,221 FUND CLEAN UP WEEK
$190.662
APPROPRIATION ADJUSTMENTS
SUPPLJES/CHARGES $190.662 CLEAN UP 1NEEK COSTS
2.04
REVENUE ADJUSTMENTS
INTERGOVERNMENTAL
APPROPRIATION ADJUSTMENTS
SUPPLtES/CHARGES
HRA REiM6URSEMENT FUND
$13,741 UNBUDGETED ACTIVITY
13 741 UNBUDGETEO ACTIVITY
DRUG AND GAMBLiNG FORFEITURE FUND
REVENUE ApJUSTMENTS
FlNES AND FORFEITS
APPROPRIATION ADJUSTMENTS
SUPPUES/CHARGES
REVENUE ADJUSTMENTS
1NTEREST EARNINGS
RENT
SALE OF PROPERTY
MISCELLANEOUS
OPERATlNG TRANSFERS
TOTAL REVENUE ADJUSTMENTS
$277 UNBUDGETED ACTIVITY
$742 UNBUDGETED ACTIVITY
HRA HOUSING FUND
462
300
50,182
2,470
483,530
E� . • .
UNBUDGETED ACTIVITY
UNBUDGETED ACTIVITY
UNBUDGETEO ACTiVITY
UNBUDGETED ACTIVITY
UNBUDC�TED ACTtVlTY
APPROPRIATION ADJUSTMENTS
PERSONAL SERVICES 72,515 UNBUDGETED ACTIVITY
. SUPPUES/CHARGES 151,855 . UNBUDGETED ACTIVITY
CAPITAL OUTLAY _�60p UNBUDGETED ACTIVITY
TOTAL APPROPRIATION AOJUSTMENTS $520 970
HOUSING REVlTAL1ZqT10N FUND
APPROPRIATION ADJUSTMENTS
SUPPLIES/CHARGES 3,408 REALLOCATE BUDGET
CAPITAL OUTiAY _ 13,408) REALLOCATE BUDGET
TOTAL APPROPRIATION ADJUSTMENTS gp
CAPITAL PROJECT FUNDS
CAPITAL IMPROVEMENT FUND
REVENUE ADJUSTMENTS
DONATIONS $15 000 CUMMINGS ENGINE-CLASS A PUMPER
APPROPRIATION ADJUSTMENTS
SUPPLIES/CHARGES 17,059
CAPITAL OUTLAY �gS, � 25�
OTHER FINANCING USES 143,094
TOTAL APPROPRIATION ADJUSTMENTS $gp,028
2■VJ
ADDED PROJECTS AND BUDGETED
PROJECTS IN EXCESS OF BUDGET
TRANSFER TO 1994 STREET PROJECT
FUND
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS
_TH DAY OF , 1996.
WILLIAM J. NEE - MAYOR
ATTEST:
WILLIAM A. CHAMPA - CITY CLERK
�■O�
TO:
FROM:
SUBJECT:
DATE:
�
hTT'
iM
<RICHARI
v�L- . ,
WILLIAM W. BURNS, CITY MANAGER 0� "` '
RICHARD D. PRIBYL, FINANCE DIRECTOR
RESOLUTION RELATING TO FRIDLEY BUSINESS PLAZA
LIMITED PARTNERSHIP PROJECT
August 9, 1996
Attached is a resolution that authorizes the City to execute a document entitled Letter of
Representations and Indemnification, as well as amendments to the original Loan
Agreement between the City of Fridley and Fridley Business Plaza. These agreements
are required because a new five year letter of credit is being used to secure the original
bonds. In acidition, other non-technical changes that do not affect the City are being
made.
Jim O'Meara, of Briggs & Morgan, has reviewed these documents and they appear
satisfactory. Debra Strehlow, of Leonard, Street & Deinard, will be at the meeting to
answer any questions.
FridIey Business Plaza has deposited $5,000 to reimburse the City for all costs incurred.
RDP/me
Attachment
3.0 y
RESOLUTION NO.
RESOLUTION APPROVIl�IG A THIlZD SUPPLEMENTAL INDENTURE OF
TRUST AND A SECOND AMENDMENT TO LOAN AGREEMENT
REGARDING THE CITY'S CONIlVIERCIAL DEVELOPMENT REVENUE
BONDS (FRIDLEY BUSINESS PLAZA LIlVIITED PARTNERSHIl� PROJECT)
AND OTHER DOCUMENTS RELATING TI�RETO
BE IT RESOLVED by the City Council of the City of Fridley, Minnesota, as follows:
1. Pursuant to the Minnesota Municipal Industrial Development Act, Minnesota
Statutes, Chapter 474, recodified as Minnesota Statutes, Sections 469.152 - 469.165, as amended, the
City of Fridley, Minnesota (the °City") issued its revenue obligation(s) for the purposes specified
therein and for the financing of eligible projects thereunder.
2. Pursuant to Resolution No. 102-1986, adopted by the Fridley City Council on
September 22, 1986 (the "Bond Resolution"), and pursuant to an Indenture of Trust, dated as of
September l, 1986 and Resolution No. 124-1986 which authoriz� a Supplemental and Restated
Indenture of Tnast, between the City and Norwest Bank Minneapolis, National Association, in
Minneapolis Minnesota (the °Initial Trustee"), the City issued its $2,800,000 (original prinripal
amount) Commercial Development Revenue Bonds (Fridley Business Plaza Limited Pard�ership
Project), bearing September 23, 1986, as the date of issue thereof (the "Bonds") the Indenture of Trust
was amended by a Second Supplemental Indenture of Trust dated September 1, 1991, by and
between the City and First Trust National Associatioq as successor to the Tnitial Trustee (the
"Trustee") (collectively, the "Indenture")_
3. Fridley Business Plaza Limited Partnership, a Minnesota limited partnership (the
"Company"), constructed an approximately 58,000 square foot multi-tenant industriaUcammercial
facility (the "Project") in the City with proceeds of the Bonds.
4. The City and the Cornpany entered into a Loan Agreement, dated as of September 1,
1986, as amended by a First Amendment to Loan Agreement, dated as of September 1, 1991
(collectively, the "Agreement"), which provided, among other things, for the loan of the proceeds of
the Bonds to the Company to be used to finance the Project.
5. The Indenture, the Bond Resolution and the Agreement contemplate the subsequent
execution of Security Documents and/or Credit Provider pocuments (as defined in the Agreement
1425964
3.02
and Indenture), as well as such amendments of or successors to the Indenture and the Agreement as
may be desirable or necessary in connection therewith.
6. There have been submitted to the City two supplemental documents entitled (i) Third
Supplemental Indenture of Trust, dated as of September 1, 1996, proposed to be entered into between
the City and the Trustee providing certain amendments to the Indenture, and (ii) Second Supplement
to Loan Ageement, dated as of September 1, 1996, proposed to be entered into between the City and
the Company providing certain amendments to the Agreement (such documents being hereinafter
collectively referred to as the "Supplemental Documents").
7. In connection with the execution and delivery of the Supplemental Documents, there
has been submitted to the City a document entitled Letter of Representations and Indemnifications, to
be dated on or about September 3, 1996, proposed to be entered into among the City, the Company,
Miller & Schroeder Financial, Inc. as Remazketing Agent and National Bank of Canada (the "Bank"),
providing for certain representations and indemnifications in connection with the remarketing of the
Bonds (the "Additional Document," and together with the Supplemental Documents, the
"Documents").
8. The City has been advised by the Company that a11 necessary consents to the
execution and delivery of the Supplemental Doc�ments have been or will be obtained as required by
the Indenture.
9. Copies of the proposed Documents have been placed on file in the office of the City
Clerk. _
10. The authorization herein for the Ciry's execution and delivery of the Documents is
contingent on satisfaction of such conditions as Briggs and Morgan, as special counsel to the City,
shall specify in writing to legal counsel to the Bank and/or the Remazk�ting Agent (as such terms aze
defined in the Indenture).
11. The Bonds are and shall remain special and limited obligations of the City, payable
solely from the revenues derived by the City from the Agreement and from the Trust Estate provided
in the Indenture. Otherwise, the Bonds shall not constitute a debt of the City within the meaning of
any constitutional or statutory or Home Rule Charter provision, shalt not constitute or give rise to any
pecuniary liability of the City, any charge against the City's full faith and credit or taxing powers or
any charge,lien or encumbrance, Iegal or equitable, upon any funds or other assets of the City.
12. The City Councit of the City hereby authorizes the Mayor and the officers of the City,
in their discretion and at such time, if any, as they deem appropriate, to execute and deliver the
Documents. All of the provisions of the Documents, when executed and delivered as authorized
herein, shall be deemed to be a part of this resolution as fully and to the same extent as if incorporated
verbatim herein and shall be in full force and effect from the date of execution and detivery thereof.
1425964
2
3.03
The Documents shall be substantially in the form on file in the office of the City Clerk with such
necessary and appropriate variations, omissions and insentions as the Mayor and officers of the City
executing the same shall approve, as evidenced by such execution thereof.
13. No covenant, stipulation, ob(igation or agreement herein contained or contained in the
Documents shall be deemed to be a covenant, stipulation, obligation or agreement of any member of
the City Council or any officer, agent or employee of the City in that person's individual capacity.
14. In case any one or more of the provisions of this resolution or the Documents shali for
any reason be held to be illegal or invalid, such illegality or invalidity shall not affect any other such
provision, but this resolution and the Documents shall be construed as if such illegal or invalid
provision had not been contained therein.
15. The off'icers of the City, attorneys, engineers and other agents or employees of the
City are hereby authorized to do all acts and things required of them by or in connection with this
resolution and the Documents for the full, punctual and complete performance of all the covenants
and agreements of the City contained therein, including without limitation the execution and delivery
of all supplementary certificates and documents necessary or advisable in connection with the
execution of the Documents.
16. Except for modifications contemplated by the Supplemental Documents, this
resalution does not supersede, nullifyo ur modify the Bond Resolution, which has remained in full
force and effect since its adoption and which is hereby reaff'irmed, but this resolution shall be
construed as supplementary thereto in respect of the express autharization herein -for the execution
and delivery by the City of the Documents.
17. The Remarketing Agent has advised the City of its intention to distribute the
Remarketing Statement prepared for the Bonds in connection with the remarketing of the Bonds. The
City has not reviewed or participated in the preparation of the Remarketing Sta.tement, has not been
requested and does not intend to, and assumes no responsibility for the accuracy, sufficiency or
completeness thereof, or otherwise.
PASSED AND ADOPTED BY TI� CITY COUNCTL OF TI� CITY OF FRIDLEY THIS
12th DAY OF AUGUST, 1996
ATTEST:
WILLIAM A. CHAMPA - CITY CLERK
1425964
I�
3
3.04
WILLIAM J. NEE - MAYOR
TO: WILLIAM W, BURNS, CI'I'Y MATTAGER ��
�
FROM: RICHARD D, pRlgyI,, FINANCE DIRECTOR
WILLIAM A. CHAMPA, CITY CLERK
S�.TE�: POLLING PLACES AND ELECTION JUDGES FOR
SEPTEMBER 10, 1996, PRIMARy ELEC"1'ION
DATE: August 7, 1996
Attached is the resolution designating polling places and appointing election
judges for the September 10, 1996 Statewide Primary Election. �
RDP/me
Attachment
4.01.
RESOLUTION NO. - 1996
RESOLUTION DESIGNATING POLLING PLACES AND APPOINTING
ELECTION JIIDGEB FOR THE SEPTEMBER 10, 1996 STATEWIDE
PRIMARY ELECTION
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fridley,
Anoka County, Minnesota, at a regular meeting on Auqust 12, 1996.
SECTION 1.
SECTION 2.
SECTION 3.
That on the lOth Say of Beptember 1996, there shall be a
Statewide Primary Election:
That the polling places for said election shall be as
follows:
Ward 1 Precinct 1
Ward 1 Precinct 2
Ward 1 Precinct 3
Ward 1 Precinct 4
Ward 2 Precinct 1
Ward 2 Precinct 2
Ward 2 Precinct 3
Ward 2 Precinct 4
Ward 3 Precinct 1
Ward 3 Precinct 2
Ward 3 Precinct 3
Ward 3 Precinct 4
Grace Evangelical Free Church
Hayes Elementary School
Fridley Municipal Center
Fridley Senior High School
Woodcrest Elementary School
Knights of Columbus
St. Philip's Lutheran church
North Park Elementary School
Springbrook Nature Center
Redeemer Lutheran church
Stevenson Elementary School
Fridley Covenant Ghurch
That the polling place will be open from 7:00 a.m. to 8:00
p.m.
SECTION 4. That the following people are hereby appointed ta act as
Judges for said election except that the City Clerk is hereby
authorized to appoint qualified substitutes as set forth in
Chapter 4, Section 4.05 of the City Charter.
WARD 1 PRECINCT 1
*Carolyn Holmen
Sandy Goman
Harriet Kish
Marlene Schonebaum
WARD 1 PRECINCT 2
*Arlene Linton
Caroiyn Bethel
Marguerite Gilbert
Marlys Kranz
WARD 1 PRECINCT 3
*Bernadette Bovy
Carrie Bakken
Lois Palmquist
Adeline Musial
Marion Ertl
Ann Bangen
Louise Molencamp
Carole Blaska
Linda Colstrom
Ruth Huss
Angeline Westman
Irma Kelly
Nina Landt
Dee Truehl
Dorothy Veres
4.02
Page 2-- Resolution No. - 1996
WARD 1 PRECINCT 4
*Norma Rust
Adeline Haidle
Margie Rosendahl
Janet Griffith
WARD 2 PRECINCT 1
*Teresa Hub
Cleo Oleson
Donna Nordin
Nina Anderson
t^1ARD 2 PRECINCT 2
*JoAnn Cedarholm
Eva Coverston
Janice Hebeisen
Delores Lynch
WARD 2 PRECTNCT 3
*Doris Reiners
Mary Ann Kerner
Jeannette Lindquist
Regina Tony
WARD 2 PRECINCT 4
*Jackie Walther
Harold Dwire
Naida Kruger
Jeanette Priebe
WARD 3 PRECINCT 1
*Betty Bonine
Myrtle Morphew
Jane Simpson
Maureen Woodard
WARD 3 PRECINCT 2
*Marie Nelson
Ruby Hall
Joe Murphy
Betty Scott
WARD 3 PRECINCT 3
*Laurie Harris
Darlene Vallin
Jan Long
Michelle Murzyn
Marlys Lisowski
Marlene O'Donnell
Sylvia Weeks
Thomas Schonebaum
Jackie Larson
Joan Schroeder
Marietta Everttz
Dawn Benjamin
Patty Galligan
Muriel Kelsey
Eugene ouellette
Marilyn Seeman
Ruby Koenen
Natalie Lohmer
Ann Williams
Marjie Douglis. _
Marlene Eidem
Barb Pickering
Marlene Steichen
Sharon James
Kay Olson
Corine Kirkham
Carolyn Doyle
Marlys Hinsverk
Margaret Hendley
Wilfred (Bill) Raeker
Dorothy Sielaff
Barbara Enrooth
Annabel Monson
Gloria Arel
Shirley Erickson
4.03
Page 3-- Resolution No. - 1996
WARD 3 PRECINCT 4
*Suzanne Alvite
Betty Nelson
Bob Hosman
Marija Netz
*HEAD JIIDGE
HEALTH CARE CENTER
Norma Rust
Patty Larsen
Beverly Steeves
Ben Monson
Eleanor Heyda
Bernadette Bovy
SECTION 5. That the following judges are appointed to act as chairperson
of the Election Board for the precincts designated and shall
have the duties set forth in Section 2U4B.20 of Minnesota
Statutes.
SECTION 6.
Ward i Precinct 1
Ward 1 Precinct 2
Ward 1 Precinct 3
Ward 1 Predinct 4
Ward 2 Precinct 1
Ward 2 Precinct 2
Ward 2 Precinct 3
Ward 2 Precinct 4
Ward 3 Precinct 1
Ward 3 Precinct 2
Ward 3 Precinct 3
Ward 3 Precinct 4
Carolyn Holmen
Arlene Linton
Bernadette Bovy
Norma Rust
Teresa Hub
JoAnn Cedarholm
Doris Reiners
Jackie Walther
Betty Bonine
Marie Nelson
Laurie Harris
Suzanne Alvite
Compensation for said Judges will be paid at the rate of $7.00
per hour for regular Judges and $7.50 for the Chairperson of
the Election Board.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 12th DAY
OF AUGUST, 1996.
ATTEST:
WILLIAM A. CHAMPA - CITY CLERK
4.04
WILLIAM J. NEE - MAYOR
MEMORANDUM
DEVELOPMENT DIRECTOR
DATE: August 7, 1996
TO: �Iliam Bums, Ci Mana er ��
tY 9 �
FROM: Barbara Dacy, Community Development Director
SUBJECT: Resolution Adding an Additional Parcei to Redevelopment
Project Area No. 1 for Wallboard, Inc.
BackQround
At the June 13, 1996 meeting, the HRA passed a motion directing staff to initiate the
process to add a 3.69 acre parcel owned by Wailboard, inc. to the Redev�fopment
Project Area. The motion �{so directed staff to negotiate with Wallboard, lnc: for the
provision of a loan and second mortgage. �
Wallboard, inc. has purchased a parcel in the Great Northem Industrial Park to
construct a 30,000 square fioot building. . Wallboard, inc. supplies building materials to
general contractors, drywall contractors, and to the general public. Approximately 30
jobs are proposed to be created as a result of its relocation from Minneapolis to
Fridley. Wallboard, Inc. has also indicated that it will be manufacturing drivet walF �
systems at the new Fridley facility.
During the HRA discussion on June 13, 1996, the HRA felt that the proposed use was
just as labor intensive as a manufacturing use. In addition, although the company
supplies building materials to its customers, the HRA did not treat this application as
a true Ndistribution" use. The HRA also noted that the size of the project and vatue of
the project is similar to another project which it assisted in the area.
State Law Requirements
The City Council conducted the required public hearing on July 22, 1996. No one
spoke in opposition to the request. The addition of this parcel into the
Redevelopment Project Area enables the HRA to assist the company to encourage
�wo �
Resolution for Waliboard, inc.
August 7, 1996
Page 2
them to locate to Fridley. A tax increment financing district is not proposed. Similar
requests which have recently been completed include Sheet Metal Connectors on
Main Street and ECO Finishing, also located on Industrial Boulevard.
The Planning Commission reviewed this item at its July 10, 1996 meeting. The
Planning Commission is required to determine the consistency of the project with the
Comprehensive Plan. The site is zoned and designated as industrial, and the
proposed use is consistent with the Comprehensive Plan.
On July 11, 1996, the HRA approved its corresponding resolution to endorse the
addition of the parcel into the Redevelopment Project Area. Also at that meeting, the
HRA reviewed the status of negotiations with Wallboard, Inc. A development contract
is now being prepared to provide a second mortgage/loan for $85,000. The second
mortgage represents about 6.5% of the project costs. The total project cost is
$1.,050,000. Approximately $850,000 is solely for construction costs. With the
addition of the tax increment financing, Wallboard, Inc. will be �reating a higher value
project by adding a 4,500 square foot mezzanine within the building, increasing the
size of the overhead doors, and adding an appropriate amount of windows in the
fro�t of the building. Without these improvements, the project would be smalier and
of lesser value.
Again, because the site is not within a tax increment financing district, taxes on the
parcel wili be paid to all taxing jurisdictions.
Recommendation
Staff recommends the City Council approve the attached resolution authorizing the
addition of the parcel in the Redevelopment Project Area.
BD/dw
1• •:
5.02
RESOLUTION NO.
A RESOLUTION MODIFYING THE REDEVELOPMENT PLAN
FOR REDEVELOPMENT PROJECT NO. 1 AND THE TAX
INCREMENT FINANCING PLANS FOR TAX INCREMENT
FINANCING DISTRICTS NOS. 1- 3, 6, 7, 9- 14
BE IT RESOLVED by the City Council (the "Council") of the City of
Fridley, Minnesota (the "City"), as follows:
Section 1. Recitals.
1.01. It has been proposed by the Housing and Redevelopment
Authority (the "Authority") that the Council modify, approve and
adopt a Modified Redevelopment Plan relating to Redevelopment
Project No. 1(the "Project Area") to reflect increased geographic
area and increased project costs within the Project Area, pursuant
to and in accordance with Minnesota Statutes, Sections 469.001 to
469.047, inclusive, as amended and supplemented from time to time.
1.02. It has been further proposed by the Authority that the
Council modify, approve and adopt Modified Tax Increment Financing
Plans for Tax Increment Financing Districts Nos. 1- 3, 6, 7, 9-
14 to reflect increased project costs within the Project Area,
pursuant to Minnesota Statutes, Section 469.174 through 469.179,
inclusive, as amended an3 supplemented from time to time.
1.03. The'Authority has caused to be prepared, and this Council
has investigated the facts with respect thereto, a Modified
Redevelopment Plan and Modified Tax Increment Financing Plans
(collectively the "Plans") to reflect increased geographic area and
increased project costs within the Project Area, defining more
precisely the property to be included, the public costs to be
incurred, and other matters relating thereto.
1.04. The Council has performed all actions required by law to be
performed prior to the modification, approval and adoption of the
Plans.
1.05. The Council hereby determines that it is necessary and in
the best interests of the City and the Authority at this time�to
modify, approve and adopt the Plans to reflect increased geographic
area and increased project costs within the Project Area.
Section 2 . Findincts .
2.01. The Council hereby finds, determines and
assistance to be provided through the adoption
of the Plans is necessary to assure the
redevelopment of Redevelopment Project No. 1.
5.03
declares that the
and implementation
development and
Page 2 - Resolution No.
2.02. The Council hereby finds, determines and declares that the
Plans conform to the general plan for the development and
redevelopment of the City as a whole in that they are consistent
with the City's comprehensive plan.
2.03. The Council hereby finds, determines and declares that the
Plans afford maximum opportunity consistent with the sound needs of
the City as a whole for the development and redevelopment of
Redevelopment Project No. 1 by private enterprise and it is
contemplated that the development and redevelopment thereof will be
carried out pursuant to redevelopment contracts with private
developers.
2.04. The Council hereby finds, determines and declares that the
approval and adoption of the Plans by the City is intended and, in.
the judgement of this Council, its effect will be to promote the
purposes and objectives specified in this Section 2 and otherwise
promote certain public purposes and accomplish certain objectives
as specified in the Plans.
Section 3. Modification, AAproval and Adoption of a Modified.
Redevelopment Plan.
3.01. The modifi�ations to the Redevelopment Plan reflecting
increased geographic area and increased project costs within the
Project Area are hereby approved and adopted by the Council of the
City of Fridley. �
Section 4. Modification, Approval and Adoption of Modified Tax
Increment Financinq Plans.
4.01. The modifications to the Tax Increment Financing Plans for
Tax Increment Financing Districts No. 1- 3, 6, 7, 9- 14
reflecting increased project costs within the Project Area are
hereby approved and adopted by the Council of the City of Fridley.
Section 5. Filinq of Plans.
5.01. Upon approval and adoption of the Plans, the City shall
cause said Plans to be filed with the Commissioner of Revenue.
PASSED AND ADOPTED BY THE COUNCIL OF THE CITY THIS DAY OF
, 1996.
WILLIAM J. NEE - MAYOR
ATTEST:
WILLIAM A. CHAMPA - CITY CLERK
5.04
City of Fridley
TO: William W. Burns, City Manager PW96-157
� ,.�'�
FROM: John G. Flora, �Public Works Director
DATE: August 12, 1996
SUBJECT: Osbome Road Improvement {CP 91-08-108, SAP 127-020-18)
The County is preparing to upgrade Osbome Road from Old Central east to Stinson
Boulevard. In that process, they will be installing concrete curb and gutter, storm water
improvernents and a sidewalk on the Fridley side of the road It is estimated that the City's
cost for that improvement will be approximately $100,000 plus engineering costs
associated with this project. The attached tesolution requests State Aid off-system
funding for the Anoka County Osbome Road improvement project. -
Recommend the City Council adopt the attached resolution requesting off-system
Municipal State Aid Funds to County State Aid Highway (CSAH 108) Osbome Road, Old
Central to Stinson Blvd. •
When the� plans for the improvement have been received, we will present them to the
Council for approval; then schedule a public hearing on the assessments for the project,
particularly the concrete curb and gutter, and finally execute a Joix�t Powers Agreement
with the County.
JcF:cz
Attachment
6.01
RE.SOLUTION I�U. - 1996
RF.90LUPIC�i AxTII�RIZING MpNIQPAL SIIDiTE AID F[A�IDB ZO GOiA�iI'Y S'i'ATE AID
HIGHWAY (C. S. A. H. 108 ) OSBORI� IaUAD — OIa C�+iL TO STII�LSO�i HLVD�
(CP 91-08-108) (S.A.P. 127-020-18)
�1�, it has been deemed advisable and necessary for Anoka Cbimty to
�nstruct the surface of �borne Rc�ad betw�een Old C.�ntral arr.l Stinsorl Bazlevan�
incl� gradirx�, Class V, bit�nninota.s, ooncxete c�urb ar�d cjuttex, d�annelization,
storm sewer drainage, sidewalk and miscellaneous.impravements, and
WI�RF�AS, the City is requesting off-system MSAS fund.s for the City's
participating cost in the amount of $125,000, and
W�, said impravement project includes bitam�inous bikeway/walkway on the
north and concrete sidewalk on the south frcan Old Central to Stinson Bouleva�l,
and
�, said constructi.on proj ect is being sulsnitted to the Mirn�sota Depaitment
of Trar��rtation State Aid Offioe and identified in its reco�3s as S.A.P. 127-
020-18.
NOi�1� Z`E�REFORE, BE IT RESOLVED THAT, the City Couricil of the City of Fridley,
Anoka Camty, Minnesota, that an ap�ropriation fn�t t2� M�micigal State Aid �aryds
in the amaunt af $125,000 be made to apply to the construction of said
improvement (S.A.P. 127-020-18) and n�uest the C�.ssioner of the Minnesota
Department of Transportation to apprave this additional appropri�tion.
PASSED A1�ID ADOP.L'ED BY THE CITY QOiRdCIL OF T� CITY OF FRtIDLEY T�IIS 12TS nAY �'
AIJGUST, 1996.
ATI'E�ST:
WILLIAM A. (�MPA - CITY CI�RK
WILLIAM J. NEE - MAYOR
�■��
POLICE D$PARTME�T
city of Fridley �pg��
Minnesota
�
TO: William W. Burns r� l,?�
�'ROM : �
Dave Sallman �
SIIBJECT: Emerqencp Manaqement Director Appointment
DATE: August 7th, 1996
Per your request, a resolution is attached appointinq me as the Emerqency
Manaqement Director. City ordinance 106 provides for the appointment of
the Emerqency Manaqement Director and �hile I have been servinq in that
aapacity, there has been no formal action on this issue. The City�s
Emerqency Manaqement Plan refers to Public Safety Director as the Emerqencp
Manaqement Director•but that plan has not been presented to the Council for
approval as pet. Staff recommends approval.
7.01
RESOLITTION NO, - 1996
RESOLUTION TO APPOINT AN EMERGENCY
MANAGEMENT DIRECTOR FOR TI� CITY
OF FRIDLEY
WHEREAS, City Ordinance 106 provides for the establishment of a local Emergency
Management Organization; and
WHEREAS, the purpose of the Emergency Management Organization is to carry out emergency
preparedness functions during emergencies and disasters; and
WHEREAS, section 106.03 directs that the Emergency Management Organization sha11 be under
the supervision of the Emergency Management Director who shall be appointed by the Mayor;
NOW, THEREFORE, BE IT RESOLVED, that David H. Sallman be appointed Director of
Emergency Management for the City of Fridley.
PASSED AND ADOPTED BY TI� CITY COUNCII, OF TI� CITY OF FRIDLEY THIS
12TH DAY OF AUGUST, 1996.
ATTEST:
WII.LIAM A. CHAMPA - CITY CLERK
WII,LIAM J. NEE - MAYOR
7.�2
a
0
MEMORANDUM
FIRE DEPARTMENT CHARLES J.:IVICKUSICK
GITY OF FRIDLEY � cx�EF
r
T�: `�'I�LI.y1I �1'. I�L'R\'S, CIT'�' �I-���G�:R �
,
�'Kd'�'y: C�L�CK ��ICKL�SICK, FIRF CHII:F �
IiATE: JULY 22,1996
Si�BJFCT: CF�E'.tITC:�L ASS�;SS�II?`T TE:��Z C(3�TI�.4CT�
Attached is a resolution for Council adoption authorizing the City Manager to sign on behalf of the
City the Chemical Assessment Team agreement between the City of Fridley and the State of
Minnesota, Department of Puhlic Safety, Staxe Fire Marshall Division. Un August 28, 1995,
Council approved resolution number 50-1995 {copy attached) which authorized an agreement v��ith
the State for the loaai of State owned hazardous materials emergency response equipment te the
City. During the pa.�t year, the fire depa,rtment has practiced using that equipment while the final
tenns of the attached agreement were being finalized.
The attached agreement designates the City of Fridley as the contract admiiustrator for providing
ciiemical assessment einergency services. This service is a joint effort between the Fridle_y, Coon
Rapids and Spring La1:e Park\BlaineuVlounds View fire departments. It is an example of
caoperation between cities to promote public safety within those communities as well as
neighboring areas. The cost of the services and equipment is reimbursed to the City through a
budgeting process which has been preapproved by the Sta.te. That agreement authorizes $8,000
reimbursement to the City for training costs incuned from January 1 through June 30, 1996, an
annual $40,000 operating budget duriug the State fiscal _year, a,�d a.dditional reimbursement for
costs incurred responding to an incident. We reta.in u,se of the equipment and supplies provided to
us under the Loan Agreeinent approc�ed in 1995.
We are �leased fha.t tlus agreement is now ready for approval; it represents nearly two _years of
work by the State, aur local communities, and our corporate citizens who are members of North
Metro C�i:K (Conu3i�:tuty Aivareness ai�d Emergency Response,l.
ce: Frederick W. Knaak, Esq.
8.01
RE30LUTION # -1996
RESOLUTION AUTHORIZING AGREEMENT W1TH
STATE OF MINNESOTA FOR F'ITRNISHIl�TG HAZARDOUS
MATERIAIS EMERGENCY RESPONSE SERVICE
WI�REAS, the C�ty of Fridley's fire department lias been seiected by the State of Minnesota
Department of Public Safety as qualified to serve as a Chemical Assessment Team pursuant to the
Minnesota Hazardous Materials Incident Response Act, and
WHEREAS, the terms of said service ha.ve now i�een defined and are deemed satisfactory to the
parties to the agreement,
NOW, THEREFORE, BE TT RESOLVED that the Ma.yor and City Manager ar� hereby
authorized to enter into a service agreement with the State of Minnesota. for the providing of
Chemical Assessffient Team functions as described in, and for the consideration recited in the -
"North Metro Chemical Assessment Team" contract.
PASSID AND ADOPTED BY TI� CTTY COUNCII, OF TI� CTTY OF FRIDLEY THIS
12TH DAY OF AUGUST, 1996.
ATTEST:
WII I.IAIVI A CHAMPA - CTTY CLERK
8.02
WII.LIAM J. NEE - MAYOR
RESOLUTION # �d - 1995
RESOLUTION AUTHORIZING AGREEMENT WITH
STATE OF MIl�TNESOTA FOR THE LOAN OF FrA�aunOUS
MATERIALS EMERGENCY RESPONSE EQUIPMENT
VVHEREAS, the City of Fridley's fire department has been selected by the State of Minnesota
Public Safety Department Sta.te Fire Marshall Division (hereinafter the "State") as a Ghemical
Assessment Team pursuant to the Minnesota Hazardous Materials Incident Response Act
(hereinaf�er the "Act"), and
VVHEREAS, the State desires to loan to the City specialized bazardous materials response
equipment in accordance with the terms of a Loan Agreement tendered to the City under
memorandum dated July 28, 1995, pend,ing execuiion of a contract between the Cinl a.nd State for
the Gity's appointment as a Chemical Assessmeni Team under the Act, and
WHEREAS, the City is allowed use of said equipment to mitigate chemical releases wiihin the fue
department's current response jutisdiction,
- NOW, TT�EREFORE, BE TT RESOLVED that the Mayor and City M,anager are hereby
authorized to enter into a hazardous materiaL4 emergency response equipment loan agreement with
the State of Minnesota, the terms of wluch are substantially the same as the draft agreement
tendered to the City on Tu1y 28, 1995 by the State's Hazu�dous Maxerials Regionai Response
T�aam Program Operations Administrator, Deparmient of Public Safety. �
PA�SSED AND ADOPTID BY TI� CTTY COUNCII� OF THE CTTY O�F �RIDLEY THIS
28TH DAY OF AUGUST, 1995.
ATTEST:
WII..LIAM A. CHAMI'A - CITY CLERK
D:: 8��
WII.,LIAM J. NEE - MAYOR
8.03
�
OBLIGATION DATE:
(when work started)
VENDOR NAME:
January 1, 1996
City of Fridley
M.S.1GA.15, Subd.3 LETTER
ReasQn whv the obli�ation was incurred before contract was encumbered
Contract #:
OBLIGATION AMOUNT: $8,Q00.00
The City of Fridley will serve as a component of the Minnesota Department of Public Safety's Hazardous Materials
Regional Response Team Program (MS 299A.48). This is a new program, the nature of which (public safety hazazdous
materials emergency response) requixed the development of unique professional and technical services contracts in order
to address the program's special requirements. A total of ten public and private vendors, and numerous State agencies
were involved in a lengthy negotiation process which delayed implementation well beyond the planned January 1, 1996
start date.
'�i In order to be rea.dy to provide service as saon as contracts were finalized, it was necessary for the vendor to schedule
and conduct training and other�start up activities. Scheduling was completed in the Fall of 1995, in anticipation of the
' January 1, 1996 date. When contracts were not finalized as planned, the vendor elected not to cancel scheduled training
� due to the limited opportunities for rescheduling. Vendor's failure to conduct the start up activities as planned would
have further delayed program unplementation and hampered a vital public safety service.
Vendor is recovering only a portion of the actual start up costs incurred. The remaining amount is being absorbed by the
vendor as a cost of doing business. No costs are being paid which would not have otherwise been eligible had the
' January 1, 1996 start date been realized. .
'�� 3�Ihat corrective acrion will be taken to prevent the ahr�ve problem in the future
, Future contracts with this vendor will not contain funding for start up costs, nor should there be a repeat of the lengthy
uutial contract development and negotiation process.
' VendQr has been advised that any future contacts will not permit the recovery of expenditures prior to issuance of a
contract with all necessary approvals and encumbra.nces:
Person(s) Responsible:
Accounting Director:
Department Head:
Thomas R. Brace, State Fire Marshal
James D. Franklin, Director - Division of Emergency Management
' i �
.
S`CATE OF MINNESOTA
CONTRAC"CUAL (non-state employee) SERVICES
Accounting Information: RQ for State Authorized Incidents = RQ 2000-239
A8��7'� Fiscal Year. Vendor Number:
Total Amount of Contrad: qmount of Contna First FY:
Commodiry Code: Commodity Code: Cotnmodity Code:
Objeci Code: Objed Code: Object Code:
Amount: AmounL• Amount:
� Accounting Distribution 1:
IFuad:
Appr.
Org/Sub:
Rept C�atg:
Amount:
Acco,u�ting Disbributi� 2:
Fund:
Appr.
O�g/Sub:
Rept Catg:
Amount:
'rocessing Information: (Some entries may not apply)
Zequisition:
Number/Date�Entry InitiaLs
Accounting Distribution 3:
Fmid:
Appr.
Oig/Sub:
Rept Catg:
Amount:
Solicitaiion:
- Number/Date/Entry Liitials
'O°�� Order: -
Nu�mbea/Date/Eniry Initials Numba'/Date/Signat�res
,
[Individual signing certifies that funds have been
encumbered as required by Minn. Sta�16A.15]
A R• You are required by 11Tnnesota Statutes Section 270.66 to provide your social security number or Minnesota
ideniification number if you do business with the State of Minnesota: 'I7�is information may.be used in the enforcement of federal and
tax laws. SupP13'inS tt►ese Rumbe�s could result in �6on to requue you W fiie statz tax retums and pay delinquent st�te tax liabili6es.
i n 'll n v nl n m vi These numbeas will be available to federal. and siate tax authorides
state personnel invoolved in the payment of state obligations.
Name and Address: City of Fridley
6431 University Avenue
Fridley, Minnesota 55432
�c. Sec. or Federal Employer I.D. No.: 41-8600-700
Minnesota Tax I.D. No.: 8030301
THIS PAGE OF THE CONTRACT CONTAINS PRI►�ATE lNFORMATION.
AS DEFINED ABOVE, THIS PAGE SHOULD NOT BE REPRODUCED OR DISTRIBUTED WTfHOUT EXPRESS
WRITTEN PERMISSION OF THE CONTRACTOR.
If you circulate this contract internally, DO NOT include this page.
8■05 - (NathMetroC7iemicaiAssessmt�tTeam)
Caver Page
THIS CONTRACT', which shall be interpreted pursuant to U�e laws oC U�c State of Minnesota, between the State of Minnesota, acting through its
DeparUnent of Pubtic Safety (hcreinaftcr STATE} and the City of Fridlcy, 6431 Univcrsity Avcnue, Fridley, Minnesota, 55432, (hereinafter
CONTRACTOR), witnesseth that:
WHEREAS, the STAT'E, pursuant to Minnesota Statutes 15.061 and Minnesota Statutes 299A.50, Subdivision 2, is empowered to enter into
contracts with other state departments arid agencies, local units of government, other states, indian tribes, the federal government, or other
nonpublic persons to implement the provisions of Minnesota Rules, Chapter 7514, and
WHEREAS, the Minaesota Legislature has determined the need exists for a system of regionalty located Hazardous Materials Emergency
Response Teams and Hazardous Materials Chemical Assessment Teams to assist local authoriiies in protecting the public safety from the effects
of a hazardous materials release, and
WHEREAS, CONTRACTOR represents that it is duly qualified and willing to perform the services set forth herein as a Hazardoos Materials
Chemical Assessment Team.
NOW, THEREFORE, it is agreed:
I. CONTRACTOR' D 1TiFS. CONTRACTpR, who is not a state employee, except as defined in Minnesota Statutes, Chapter 299A.51,
Subdivisions 1 and 2, shall be responsi�ble for all terms, tasks and condifions assigned by Minnesota Statute, Chapter 299A.48 to 299A.52
and Minnesota Rules, Chapter 7514, including but not limited to the following:
A. Respond to hazardous materials incidents occurring in CONTRACTOR'S primary and secondary response areas when
requested;
B. Respond to any response area in ihe state when directed to do so by the Commissioner of Public Safety (Minnesora Rutes,
Chapter 7514.0900, Subpart 1);
C. Coordinate on-scene emagenc}'resPanse operations with locai, state, and federal agencies, Indian tribes, and private response
organizations through the N�innesota incident Management System (Minnesota Ru1es, Chapter 75141800, Subparr 1);
D. Ensure that team members are in compliance with the initial, continaing educatian, and team tcaining requirements estabtished
in Mumesota Rules, (fiapt� 7514.0600,-Sabpazts 1 to 4, and annually certify such compliance to the Commissioner (Minnesota
Rules, Chapter 7S14.U600, Subpart 6);
E. Ensure that team membeas are in compliance with the medical requirements established in Minnesota Rules, Chapter
7514.0600, Subpart 7, and annually certify such compliance to the Commissioner (Minnesota Rules, Chapter 7514A600,
Subpart 7); '
F. Deploy team personnel and equipment to a hazardous materials incident within an average of fifteen (15) minutes from the time
the decision is made W dispatch the team (Minnesota Rules, Chapter 7514.0500). For purposes of the clause; the decision to
dispatch the team will be considered made at the time the CONTRACTpR'S point of contact for parposes of dispatching the
team, as identified in Appendia E, is notified by the STATE;
G. EnsUre compliance with all other employer requirements established in Minnesota Rules, Chapter 7514.0600;
H. Conduct a formal evaluation of the team's response to each incident as required by Minnesota Rules, Chapter 75 i4.1300:
I. Submit a detailed report of the team's response to an incident as cequired by Minnesota Rules; CF�apter 7514.0900, Subpart 7.
and take all appropriate measures to identify to the STATE the responsible person of each incident;
J. Designate a primary and one or more alternate representative(s) to the Hazardous Materials Regional Response Team Program
Team Advisory Commitiee, who will make every reasonable attempt to attend meetings of the comrnittee and have the authority
to make recommendations on behalf of the CONTRACTOR;
K. Designate a primary and aitemate representative who will receive 6�ining in applying the suggested operating guidelines and
other administra6ve procedares of the Hazardous Materials Regional Response Team Program, provided by the Commissioner,
(NoAh Metro C�emical Assessment Team )
8�0� Page I
as rcquired by Minnesota Rules, Chaptcr 7514.0700, Subpart 2, and who will bc responsible for providing that instruction to
other team members;
L. Maintain and store emergency resp�nse vehicles and equipment, whether loaned to CONTRAC"TOR by the STATE, or owned
by CON'TRACTOR, in proper working order and ready for response at all times, except as may be necessary for the performance
of routine or necessazy maintenance, nepairs or replacement. CONTRACTOR must immediately notify tfie STATE whenever
CONTRACT'OR is not available for emergency response as a result of such circumstances;
M Submit claims for recoverable costs to the Commissioner as reqwred by Minnesota Rules, Chapter 7514.1700, $ubparts 1 and
3, and take all appro�xiate measures to identify to the STATE tl�e responsible person for each incident.
N. Maintain the minimum composition of team members reqaired by Minnesota Rules, Chapter 7514.0800;
O. Respond to each incident with three (3) persons certified to the levels of hazardous materials training required by Minnesota
Rules, Chapter 7514.0800, Subpart 6;
P. Respond to incidents and assist bcal authorities by p�viding technipi advice to local incident commar�ders and recommending
mi6garion actions necessacy to �t life, propeaty and the environment that are in keeping wiih locally available levels of
hazardous materiais training and response capability (Minnesota Rules, Chapter 7514.0900, Subpart 3); and
Q. Respond to incidents in conjonc6on with an Emergency Response Team, to assess an incident, develop and recommend
mitigation strategies, and assist wiih response operations (Minnesota Rules, Chapter 7514.090p, Subpart �).
�ONSIDERATION ANn TERM OF pqyMEIV1-
A. Consi�eration far all sen+ices performed and goods or material, suppli� by CONTRACTOR pursuant to this contract shall be
gaid by the STATE as follow� .
1. CONTRACTpR's CompensaUion, CONTRACfOR shall be paid by the STATE for the following costs associated
a• Capihal equipment - cast of capital equipment including vehicles;
Not to exceed $0.00 beginning Janua�, 1, 1996 tluough June 30, 1996
Not to exceed $850.00 beginning July 1, 1996 through June 30, 1997
b. Training - Annual vost of training team personnel;
Not to exceed $7,550.00 beginning January 1, 1996 duough June 3Q 1996
Nnt to exceed $29,950.pp beginning July 1, 1996 through June 30, 1997
c. Medical Eaaminations - Cost of annual medical examinations for team personnel;
Not to excxed $0,0p through June 30,1997
No[ to exceed $0.00 beginning July 1, 1996 through June 30, 1997
d. Consumable Supplies - Initial cost of consumable supplies;
Not to exceed $0.00 beginning January 1, 1996 through June 30, i996
Not to exceed $1,000.0p beginning July 1, 1996 through June 30, 1997
e. Administration - Program administration costs;
Not to exceed $450.00 beginning Ianuary 1, 1996 through June 30, 1996
Not to exceed $6,OOO.Qp begin�ing July 1, 1996 through June 30, 1997
f• Maintenance - Equipment maintenance costs;
8■ O� (Nwth Metro Chemical Assessment Team )
Page 2
Not to cxcc;cd �0_00 bc�inning January l, 1��6 through Junc 30, 1996
Not to excced $2,200.00 be�inning luly 1, 1996 through Junc 30, t997
CONTRACTOR may submit a rcvisc;d budget Cor any dcviation of ZO�o or iess l�etween the funding categories listed
above during each state Cscal year of this contract (See Clause II, Section A, Item 5). However, the revised budget must
be approved by the STATE'S authorized agents before any expenditures may be made based on the revised budget. Any
deviation greater than 20% between the funding categories �isted above during each state f'�scal year of this contract
(See Clause II, Section A, Item 5) will require an amendment to this Agreement.
3. Emergency Response Compensation. CON'I'RAC'I'OR shall be reimburseci by the STATE for the reasonable and
necessary costs associated with an actual response as follows:
a. Team Personnel Costs;
Ja�ry 1. 1996 through December 31 1996
$2252 per hour per person for on-duty personnel, $33.78 per hour per person for off-daty personnel,
three (3) persons, iwo (2) hour minimum from 6:00 am to rnidnight, three (3) hour minimum from
midnight to 6:00 am.
Ian�i ry 1. 1997 through Jane 30 1997
$23.16 per hour per personfor on-duty peisonnel, $34.74 �er hour per person for off-duiy personnel,
three (3) persons, two (2) hour minimum from 6:00 am to midnight, �(3) hour minimum from
midnight to 6:00 am. �
b. Additional Wage Costs for Local Catlback Personnei;
- - ' � 11� � � :� ." 1�1�
� 11.26 per hour per peispn for on-ciaty eoverage, two (2j hour minimum from 6:00 am to midnighi,
ttuee (3) hour minimum fiom midnight to 6:00 am.
Ja�ry i. 1997 throuEh June 30 1997
$11.58 per hour per personfor on-duty coverage, two (2) hour minimum from 6:00 am to midnight,
three (3) hour minimum from midnight to 6:00 am.
c. Vehicle Operating Costs;
$37.50 per hour, including clean up dme after returning to fire station.
d. Cost of Consamable Supplies Used;
CONTRACTOR will submit an itemized invoice for actual costs incurred
e. Costs of Repair or Replacement of Da�r�aged or Destroyed Equipment;
CONIRACTOR wiil submit an itemized invoice for actual costs incurred. If costs exceed $500.00, the
STATE may reques[ competiUve bids or quotes prior to the repair or repiacement of equipment.
CONTRACTORS, who are municipalides, must comply with municipal bidding laws.
f. Communications Costs;
COI�RACTOR will submit an itemized invoice for acmai costs incurred. Eligible costs are defined as
cellular and land line telephone costs for voice, data, or facsimile transmissions.
I V� O V (Niath Metro Chemical Assessment Team)
Page 3
g. Admioistrative Cos�s Direcdy Rcsulting from the Emergency Response;
Up to $275.00 per State authorizcd emergency response_ CONTRACTOR may request additional
administrative cost compcnsation, basecl on ao itemized invoice for actual costs incuneci, when extraordinary
circumstances resuldng from a specific State authorized emergency response are documented.
Costs Incarred in ihe use of Special Equipment as pcovided in Minnesota Rules, Chapter 7514. i200;
i. Costs Incuned in the use of Special Technicai Assis[ance as provided in Minnesota Rules, Chapter
7514.1200;
j. Costs Assoeiated with Providing Support to Cleanup Operations when Requested in Accordance with
Minnesota Rules, Chapter 7514.0900, Subpart 5;
k. Costs Associated with Providing Standby Technical Assistance when Requested in Accordance with
Minnesota Rules, Chapter 7514.1600, Subpart 4 and;
1• Other Direct Costs incurred by the CONTRAC'POR as a Result of the Emergency Response.
4. Costs incuired under Clause II, Section A, Item 3 of this Agreement for any single response by CONTRACTOR may
not exceed Five Thousand dollars ($5,000.00), unless authorized by the STATE.
All necessary and reasonable costs associated with a state authorized emergency response to a hazardous materials
incident, incncred by CONTRACTOR and authorized by the STATE, will be billeti by the STATE to the responsible
person, and managed by the STATE ttuough a separate revolving acooant for such incidents. CONTRAC:TOR agrees
tt�at the STATE subrogates to the rights of the CONTRACTOR against diemspons�ble person as defined in Minnesota
Statutes 299AS2.
5• 11�e total obligation of tt�e STATE far all compensation to CONTRAZ'I'pR inc�ned �der Clause II, Sectian A, Item
1, of this Agneement, shail not ezc�ed Eight Thousand dollars (S$,000.00) from January 1, 1996 through June 30,
1996, and Forly Thousand dollars ($40,000.00) fi�om Jaly 1, 199b tluough J�me �0, 1997. Funds not expen,ded by
CONTRACTOR during any single State fiscal year may be canied avrr into a subseqvent State fiscal year.
B. T�rms of Payment
1. Payment shall be made by the STATE prompfly after CONTRACTOR's presentation of invoices for services
perfonned and acceptance of sach services by the STATE'S aathorized agents pursuant w Clause VI. Invoices shall
be submitted in a form prescn"bed by the STATE and according w the following schedule:
CONTRACTOR's Compensation. CONTRAGTOR shall submit a completed CONTRA�,"PpR's Compensation
Reimbursement Packet monthly or quarterly for reimbursement of costs identified in Clause II, Secrion A, Items 1 and
2 of this Agreement The STATE will process completed ReimbursementPackets for compensation within_ thirty (30)
days of receip� The total amount of reimbursement pertaining to Clause II, Section A, Items 1 and 2 of this Agreement
shall not exceed the limits of this contract.
Emergency Response Compensation. CONTRACTOR is respoosible for submitting a claim for reimbursement for the
reasonable and ne�yessaiy costs associated with a STATE authorized emergency response to a hazardous materials
incident within 45 days of the termination of the response. The claim for reimburs�ment must be made on STATE
provided forms and must detail the reasonable and necessary costs of the response as provided in Clause I[, Section A,
Item 3. The STATE will process completed forms for reimbursement within thirty (30) days of receipt. The total
amount of reimbuisement pertaining to Clause II, Section A, Item 3 of this agreement sha11 not exceed the limits of this
contract.
2. No more than ninety (90%) pe�ent of the CONTRACTOR's compensation due under this contract shall be paid until
the final products of the contact have been reviewed by the agency head {or the individual who executed the contract
for the agency) entering into the contrdet and the agency head (or �the individual who executed the contract for the
agency) has determined thai the contractor has satisfactorily fulfilled all the terms of the contract.
8.09 (Nonh MetroChemicai Assessmqn Team)
Pagc 4
III. COI�TDITIONS OF PAYMENT A11 services provided by CONTRACI'OR ��ursuant tc� this conlract shall be pe��forn�ed to lhe satisfaction
of the STATE and in accordance with all applicable federal, siate, arid locai laws, ordinances, rulcs, and ra�ulatioi�s. CONTRACTOR
shall not receive payment for work found by the STATE to be performed in violation of fcderal, stati; or 1<�al law, ordinance, rule or
regulation.
Lack of Appropriation: Cootinuation of this contract is con[ingent upon continucd legis�a[ive appropriatio�a of funds for the purpose of
this contrac� If these funds are not appropriated, the STATE will immedia[ely notify CONTRACTOR in writing and [he con[ract will
terminate.
IV. TERMS OF CONTRA This contract shal! be effective on January 1, 1996, or upon the date that the last signature is obtained by the
STATE, pursuant to Minnesota Statutes 16B.06, Subd.2, whichever occurs later, and shall remain in effect umil June 30, 1997, or until
all obligations set forth in this contract have been satisfactorily fulfilled, whichever occurs first, subject to the following schedule:
A. Training, Supplies, Ec�uipment and Medical Exams. Beginning on the effective date of this contract, CONTRACTOR may
expend CONTRACTOR's Compensa6on funds identi6ed in Ciause II, Section A, Items 1 and 2, to obtain required training for
team personnel, and any supplies, equipment and medical examinations necessai-y to begin providing emergency response to
hazardous materials incidents.
B. Emergency Response to Hazardous Materials Incidents. CONTRACTOR shall be�in providina a11 services identified in Clausc
I., of this contract on September 1, 1996, or on such date as is mutually agreed to by both parties in writing.
V. �ANCELLATION.
A. Cancellation by STATE. This contract may be cancelled by the STATE at any time, with or without cause, upon thirty (30) days
written notice to the CONTRACTOR.
1. In the event of such a cancellation for cause, CONTRACTOR shall refund to the STATE a pro rata amount of the
contract and funds received by CONTRACTOR for compensation in accordance with Clause II., Section A., Items 1
and 2. CONTRACTORS who have satisfied ihe requirements of 7514.0600 prior to the date of cancellation shall not
be subject to the pro rata refund provision contained in this clause.
2. In the event of such a cancellation, CONTRACTOR shall be entifled to payment of CONTRACTOR's Emergency
Response Compensadon in accordance with Ciause II, Section A, Item 3, incurred under this Agreement as the resuit
of a state authorized emergency response to a hazardous materials incident, for services performed until the effective
date of cancella6on.
B. Cancellation by CONTRACTOR. This contract may be cancelled by CONTRAC"TOR at any time, with or without cause, upon
ninety (90) days written notice to the STATE.
1. In the event of such a cancellation, CONTRACTOR shall refund to the STATE a pro rata amount of the contract and
funds received by CONTRACTOR for compensation in accordance with Clause II, Section A., Items 1 and 2.
CONTRACTORS who have satisfied the requirements of 7514.0600 prior to the date of cancellation shall not be
subject to the pro rata refund provision contained in this clause.
2. In the event of such a cancellation, CONTRACT'OR shall be entided to payment of CONTRACTOR's Emergency
Response Compensation in accordance with Clause II., Section A, Item 3, incurred under tfiis Agreement as Ihe result
of a state authorized emergency response to a hazardous materials incident, for services perfonned until the effective
date of cancellation.
' VI. AUTHORIZED AGENTIS) The STATE'S authorized agents for the purposes of administration of this cor�iract are the State Fire
Marshal and Director of the Minnesota Division of Emergency Management, or their designecs. Soch a�ents shall have final aathority
foracceptanee of CONI1tACTOR'S services and if such services are accepted as satisfactory, shall so certify on eaeh invoice submitteci
pursuant to Clause II, Section B.
CONTRACTOR's authorized agent for the purposes of administration of this contract is Charles J. McKusick, Chief, Fridley Fire
Department, 6431 University Avenue, Fridley, Minnesota, SS432_
(North Metro Chemical Assessment Team)
8.10 Peg� 5
VII. ASS[GNMENT. CONTRACTOR shall ocither assign nor iransfer any righls or obligations under this contract withoat the prior written
consent of the STAT'E.
VIII. AMENDMENTS. Any amendmcnts to this contract shall be in writing and dated, and shall be exccuted by the samc parties who executed
the original contract, or their successors in ofCce.
IX. LIABII,ITY. CONIRACTOR agrees to indemnify, save and hold harmless the STATE, its agents and employees from any and all claims
or causes of ac6on, including all �asonable attorney's fees incurred by the STATE, arising from the performance of this contract by
CONTRAC'TOR or CONTRACTOR's agents or employees. Except, in accordance with the provisions of Minnesota Statutes, Chapter
299A.51, Subdivision 1 and Minnesota Rules, Chapter 7514.2000, during operations authorized under Section 299A.50,
CONTRACTOR's employees operaGng outside their geographic jurisdiction as defned in Claase XVI, Item D of this contract are
employees of the Department of Public Safety for purposes of SecUon 3.736.. Coverage is initiated once the team is activated by the
STATE for operations authorized by the STATE, and the team is outside its geographic jurisdiction. This ctause shall not be construed
to bar any legal remedies CONTRACTOR may have for the STATE'S failure to fulfill its obligations pursuanl to this contract.
STATE AUDTTS_ The boo�:s, records, documents, and accounting procedures and pr�tices of the CONTRACTOR relevant to this
contract shall be subject to examination by the contracting department and the LegislaGve Auditor.
DATA PRACTICES
A. The CONTRACTOR agrees to comply with the Minnesota Data Practices Act as it applies to all data created, gathered or
acquired in accordance with this contrac�
B. Any publicity given the program, publications or services provided m,s�ildng from this conOract including, but not limited to.
nodces, informational pamphlets, press reteases, research reports, signs and similar public notices prepared by or for the
CONTRAC"TOR, or its employces individually or jointly with others, shall identify tthe STATE as the sponsoring agency and
shall not be released prior to approval by the STATE's autharized agents, � their designee. This provision shall not apply to
infornnation provided to _the incident comman�r during a state authatized emerger�cy nesponse to a hazazdous materials
incident
�N�TIVE ACITON. (When this c,ontract is in excess of a50,000) C�ONTRACPOR ceRifies that ii has received a cetificate of
compliance from the commissioner of Human Rights pinsuant to Mmne9ota Statues, Section 363.073, and, it is hereby agreed between
the parties that Minnesota Statutes, Section 363.073, and M'innesota Rules, Parts 5{100.3400 to 50003600 are inoorporated into this
contract by reference. A copy of Minnesota Statutes 363.073, and Minnesota Rules, Part 5000.3400 [0 5000.3600 is availabie upon
request from the STATE, or the Minnesota Dep�rtrnent of Human Rights.
WORKERS' COMPE.NSATION CONTRACTOR certifies that it has complied with the workers' compensation insurance coverage
requirement of Minnesota Statutes, Seciion 176.181, subdivision 2.
Except, in accordance with the provisions of Minnesota Statutes, Chapter 299A.51, Subdivision 2, doring operaaons authorized under
section 299A.50, CONTRACTOR's employees operating outside their geographic jurisdiction as defined in Clause XVI, Item D of this
contract are employees of the Department of Public Safety for pw�poses of Chapter 176. Coverage is initiated once the team is activated
by the STATE, for opera6ons authorized by the STATE, and the team is outside its geographic jurisdic6on.
. �I'fITRUST. CONTRACI'OR hereby assigns to the State of Minnesota any and all claims for over charges as to goods and/or services
provided in connection with this contract resulting from antitrust viola6ons which arise under the antitrust laws of the United States and
the antitrust laws of the State of Minnesota.
ZIJRISDICTION AND VENLTF This contract, and amendments and supplements thereto, shall be govemed by the laws of the State of
Minnesota. Venue for all legal proceediogs arising out of this contract, or breach thereof, shail be in the state or federal court with
compete�t jurisdicfion in Ramsey County; Minnesota.
OTHER PROVISIONS (All Appendices A through G are hereby incorporated and made a part of this agreement.)
A. The STATE reserves the right, with the CONTRACTOR's approval, to extend this contract for up to an additional three and
one-half (3 1/2) years, in a minimum of one (1) year inerements, from the expiration date of this conuact.
8.11
Page 6
B. Primary Response Area Boundarics: For purposes of Clausc [, CONTRACTOR's primary responsc are:i boundaries .irc
established as described in Appendix A:
C. Secondary Response Area Boundaries: For purposes of Clause i, CONTRACTOR's secondary response area i�un�ries arc
established as described in Appendix B:
D. CONTRACTOR's Geographic Jurisdicdon: For puiposes of Clauses IX and XIII, CONTRACTOR's normal geographic
jurisdiction is estabtished as described in Appendix C.
E. STATE owned Vehicles, Trailers and Equipment Loaned to CON'TRACTOR: STAT'E agrees to loan to CON"I'RACTOR the
hazardous materials emergency response vehicles and equipment identified in Appendix D, in accordance with the fotlowing
terms and conditions:
1. CONTRACTOR may use and have pcusession of the vehic(es, trailers and equipment identified in Appendix D.
2. The STATE shall retain 6tle and legal ownership of loaned vehicles, crailers and equipment identi6ed in Appendix
D, and provide for their nepiacemen�
3. The STATE shall, upon request of CONTRACTOR, train at least one person desiQnated by CONTRACTiOR in the
proper handling, use and mair►tenance of the vehicles, irailers and equipment identified in Appendix D. The
STATE shall provide this training to CONTRACTiOR'S personnel without cost, other than travel and related
expenses.
4. � The STATE shall maintain all necessary inventory control records on the vehicles, trailers and equipment identi-
fied in Appendix D.
5. The STATE shall administer any manufacturer's vvananty claims which may result during CONTRAC"POR'S use
of the vehicles, trailers and equi�anent identified in Apper+dix D. -
6. The S'TATE will provide CONTRACI�OR with technical assistance as necessary regazding the proper handiing, �
use and maintenance of tlie vehicles, lraileas and equipment ideniified in Appendiz A
7. CONTRAC'POR shall keep and maintaia the vehicies, trailers and equipment in proper operating condition.
8. CONTRACT�OR shall resupply all disposable, expired and consumable components originally provided by the
STATE, ar+d shall supply any c�ther necessary disposable and consumable components not provided by STATE, at
CONTRAC'POR's expense.
9. CONTRAC'POR shall be responsible for the cost of repairing or replacing vehicles, trailers and equipment which
have been lost, or in the opinion of the STATE, has been damaged due to abase, misuse, or other cause outside the
scope of normal wear and tear incurred in routine proper use. The STATE shall determine whether the vehicles,
trailers and equipment shall be repaired or replaced.
10. CONTRACTOR shail be responsible for the costs of routine maintenance and repair in accordance with the
manufacturer's recommendations.
11. CONTRACTOR shall retum the vehicles, uailers and equiQment iden6fied in Appendix D to the STATE upon
termination, expiration, or cancellation of the contrac� All such items to be delivered or shipped to the STAT'E,
postage and handiing charges prepaid by CONTRACT'�OR.
12. CONTRACTOR shall not permit ihe vehicles, trailers and equipment to be tampered with or operated by individu-
als who are not trained in tfieir proper handling and operation.
13. CON'I'RAC'TOR agrees to designate one or more person(s) to be trained by ihe STATE in the proper handling, use
and maintenance of the vehicles, Irailers and equipment. CONTRACPOR shatt bear the cost of any travet and
related expenses incurred by any person attending training.
8. � � (NonhMetro(�emicalAssessmentTeam)
Page 7
14. Tl�e person(s) trained by the STAT'E in the proper use, handlinD and maintenance of the vehicics, trai(ers and
equipment shall provide that training to CONTRACTOR'S tcam membcrs and othcr appropriate per.sonneL
15. CONZ'RACT'OR shall mal:e the vchides, tr:ulers and cyuipmcnt availab(e lo personnel authorizuJ by the STqTE
when required for inventory or inspection purposes.
16. CONTRAC'InR may make the decontamination shelter s stem and related
y equipment available to personnel
authorized by the STATE in order to facilitate training to other pubiic safety agencies and personnel in its proper
handiing, use and maintenance. CONTRAC"POR is not required by this contract to provide such training outside
of CONTRAC7nR's own employees, but may do so at COIVTRAC'TOR's discreGon. (Note: Whenever equipment
is out of service CONTRACTnR most immediately notify the STATE.)
17. CONTRACT�OR agrees to provide secure heated storage for vehicles, trailers and ec�uipment idendfied in
Appendix D.
18. Insurance: CONTRACT'OR agrees to provide the STATE a certificate{s) of insurance, or a statement of self-
insurance, naming the STATE as an additional insured under the policy(s) prior to the execution of this contract,
for the following coverage:
a. STATE Owned Vehicies and Trailers Loaned to CONTRAC"POR:
1) Automobile Physical Damage: CONTRACIbR agrees to provide automobile physical damage
(comprehensive and collision) coverage on a!1 vehicles toanea to CONTRACTnR by the STATE;
and,
2) Liability (Non-governmental Entities): CONTRACPOR agnees to provide liability coverage af
not less that $1.0 million dollars per occuirence on all vehicles loaned to CONTRACPOR by the
S'TATE; oF
3) Liability (Governmentai EntYties): CONTRACTi�R agrees to provi�e liability ooverage on all
vehicles loar�ed to CONTRA(,'T1pR by the STATE. The limits of liability for such coverage must .
be $200,000 for bodily injnry and ProPeriY damage Pes Pe�son> and $600,000 bodily injury and
P�Pert�Y �age per occ�urence.
b. CONIRACPpR Owned Vehicles and 1'railers:
1) Liability (Non-governmental Entities): CONTRACPOR agrees to p�vide liabifity coveraae of
not less than $1.0 million per occurrence on all CONTRACTOR owned vehicies;. or
2) Liability (Governmentai Entities): CONTRAC"InR agrees to provide liabitity coverage on all
vehicles loaned or leased to CONTRACPOR by the STATE. The limits of liability for such
coverage must be $200,Qpp for bodily injury and property damage per person, and $600,000
bodily injury and property damage per occurrence.
c. STATE Owned Equipment Loaned to CONTRACTiOR: CONTRACTOR agrees to provide "All Risk"
property floater insurance, or equivalent self-insurance, which provides actual value coverage for all
STATE owned property loaned to CONTRACTOR by the STATE.
d. CONTRACI�R may recover the cost of such insurance from the STATE in accordance with Clause II,
Section A, Item le, of this Agreement.
F. Reporting Requirements - Annual / Semi-Annual:
In addidon to the report required by Clause I, Section I. of this Agreement, CONTRACTOR agrees to provide the STATE with
the following reports:
H■ � � (NonhMetroQumicalAsseumentTeam)
Pagc 8
Annual Report: Not later than January 30 oC cach ycar, CONTRACTOR agrces to submil an annu:il re�rt to Ihe
STAT'E which, al a minimum, contains the following inform-ition for thc preccding calcndar year.
a• CertiCcation that team members have received traininj that mcets thc requirements of Minnesota Rules,
Chap[er 7514.0600;
b. Certi6cation that team members meet the medical requirements of Code of Federal Regulations, Tide 29,
Section 1910.120;
c. A detailed inventory of all I�azardous materials vehicles, equipment, and supplies loaned to CONTRACTOR
by the STATE, and owned by CONTRACTOR;
d. A list of team iraining aclivities including exercises, whether conducled by CONTRAC"TOR or another
jurisdictiort, irt which CONTRACTOR participated;
e. A current roster of team personnel which idenlifies each member's level of hazardous materials training; and
f• Any recommendatioos for enhancement or improvement of the regional response team program.
2. Semi-Annual Repor[; Not later than July 31 of each year, CONT'RACTOR a�ees to submit a semiannual report to the
STATE which, at a minimum, contain the following information for the preceding six (6) month period:
a. A list of team training actirities including exercises, whether conducted by CONTRACTOR or another
jurisdiction, in wtrich CONTI2ACTOR participated;
b. A current roster of team personnel which idenfifies each member's level of hazardous materials aaining;
c. A detailed inventory of all liazazzardous materials vehicies, equipment and supplies loaned to COI�'TRACTOR
by the STATE and owned by CONTRACTOR; and
d- AnY recocnmendations for enhancement or improvement of the regional response team program:
G. Point of Contact for Team Dis�atchin� CONTRAC`I'pR agrees to maintain a single point of contac[ which will be used by the
STATE to dispatch CONTRACTpR. CONTRACTOR's single point of contact is established as identified in Appendix E.
H. For purposes of this Agreement, the designees of the STATE'S Authorized Agents are included as Appendix F of the
Agreement
I. For parposes of this Agreement, CONTRACT'OR's primary and alternate representative(s) to the Hazardous Materials Regional
Response Team Program Team Advisory Committee are included as Appendix G of the Agreement.
J. "It�is instrument embodies the whole agreement of the parties. 'Il�ere are no promises, terms, conditions, or obligations other
than those contained herein; and this conbract shall s�pe�sede all previous communications, representadons, or agreements,
either verbal or written, between the parties.
K. The failure of one party to enforce any provision of this Agreement shall not consatute a waiver by that party of that or any other
provision.
(North MetroChemical Assessme�t Tearn)
8 � � � Page 9
APPEND[X A
Description of CONTRACTOR'S Primary Rcs�x�i�se Arca
CON'TRACTOR'S Primary Response Area is described as follows:
The entire Minnesota counties of Anola, Chisago, IsanU and Kanabec. In Hennepin County, the cities of Brooldyn Center, Brooklyn
Park, Champlin, Dayton, that area of Minneapolis located noRh of the Mississippi River, Osseo and St. Anthony. In Ramsey
County, the city of Mounds Y�ew. In Sherburne County, all areas exclusive of the area assigned to the St. Cloud Fire Department
(which is County Road 14 from the Mississippi River nonh to County Road 15 nonh to County Road 4 east to County Road l north
to County Road 9 east to United States Highway 159 norih to the Mille Lacs County tine).
8� 15 iNoRh Metro Chemica! Assessmen� eam )
P e10
APPENDIX B
Description of CONTRACT'OR'S Secotulary Response Arca
CONTRACTOR'S Secondary Response Area is dcscribod as fot(ows:
The entire state of Minnesota not identificd as ihe CONTRACTOR'S Primary Response Area in Appendix A, as directed by
authorized Minnesota Departmen[ of Public Safety personnel.
�a � � (NoAh MeiroChemical Assessmen� Team )
Page i 1
APPENDIX C
Description of CONTRACIi7R'S Normal Geographic lurisciiction
CONTRACTOR'S normal geographic jurisdiction is described as follows:
For purposes of this agreement, CONTRACT�OR'S normal geographic jurisdiction is the corporate limits of the cities of Coon
Rapids, Fridiey, Spring La�;e Park, Blaine, and Mounds Vew, Minnesota.
8■ � � (NonhMetroChemicalAssessmentgeam)
Pa e 12
APPEND[X D
List of STATE Owned Vehicles, Trailers and Equipmcnt Loaned to CON'fRAC"I'�R
TTEM
Q UANTI`f Y
Reference Materia!
ACGIH Threshold Limit Values and Biological Exposure Indices 1
Agricult�ral Chemicals Book - Volumes 1 through 4 1
Agricuttural Directory and Hazard Response Handbook 1
� Association of American Raiiroads Emergency Action Guides 1
Association of American Railroads Tank Car Manual 1
CHRIS Hazardous Chemical Data Manual 1
Comprehensive Guide to Ha�ardous PropeRies of Chemical Substances 1
Crop Protection Chemicai Reference i
, DOT Emergency Response Guidebook 1
'I Emergency Care for Hazazdous MateriaLs Exposure i
Emergency Handling of Hazardoas Materials in Surface Transportation 1
Farm Chemicals Handbook i
Firefighter's Handbook of Hazardous Materials 1
F'uefighter's Hazardous MateriaLs Reference Book and Index 1
General American Tank Car Company (GATX) Tank Car Manual , I
i Guidebook for the Safe Use of Hazardous Ag. Farm Chemicals & Pesticides 1
'I Nandbook of Compressed Gases ' i
Hawley's Condensed Chemical Dic6onary 1
Hazardous Chemicals Desk Reference i
Hazardous Materials Exposure: Emergency Response and Patient Care 1
Hazardous MateriaLs Injuties: A Handbook for Pre-Hospital Care . 1
IVFPA Fire Protecdon Guide on Hazardous Materiais 1
�I IVIOSH Pocket Guide to Chemical Hazards - 1
I Qnicic Selection Guide to Chemical Protective Clothing i
Respirator Selecfion Guide �
SAX's Dangerous Properties of Industrial Materials 1
Symbol Seekers 1
The Pesdcide Book . 1
', Regional Response Team Program Manual 1
Decontamination Equipment
Astro Turf Mats .
Brushes, Soft Bristle Long Handle �
Decontamination Sheiter System (Compone�ts)
Air Bottle Regulator
Hot Water Heater
Disposable Poo!
Garden Hose, 2S ft. sections with Connector
Heaters
Multiple Shelter Connecting Unit
Pressure Control Unit
Shelter, Compartmenta[ized
Shelter, Open lnterior
Shower, lnside
Shower, Oulside
Spray Wand
Tent Stakes
Car Wash Brushes with Garden Hose Connection
3
3
4
2
16
(North MetroChemical Assessment Tearn)
8■ � � Yage 13
Patay Diaphraam Pump, with Hoscs and 1 Extra Set Nitril Diaphragms
Stcel Salvage Drum, 30 gal
Emergency Eyewash Kit, Saline Soluiion
Eolding Chairs or Stools
Folding Tabte, 72" x 30".
Folding Table, 60" x 30"
Foot Stools/Step - Plastic
I.ighting System - Flood, with Generator (6K)
Personal Protective Equipment
MSA LTltra Twin Air Purifying Respirators, with 30 G1V�-H Canisiers
irritant Smoke Fit Test Kit
�nyl Fit Test Tent
Chemical Resistant Boots , Electrostatic Dissipating
Gioves, Assorted Materials - Butyl, Neoprene, Nitrile, PVC, Vton, Kevlar
NeoprenelNicrile
Silver Shield / 4-H
PVC / Nitrile
Viton
Kevlar
Sol-Uex Nitril
3oggles
:iand Hats / Rescue Helmets
:evel A Kappler Reflector Encapsulating Suits
Level A Kappler Responder Plus Encapsularing Suits
',,,evel B Kappler Responder Encapsulating Suits
'.�evel B Kappier CPF 3 Non-Encapsulating Suits
xvel B Kappler CPF 2 Non-Encapsulating Suits
.revel C KleenGuard Disposable Suit
.evel A Training Suits
;ait Cooling Vests
�uit Test Kit
myl Gloves
ler Computerized Chemical Penmeafion Suit Selection Guide
Controi SappGes and Equipment
ng and Grounding Equipment
Cover Clamps
Upender
and Other Communications Equipment
�r Phone, Dual Nam
�r Phone/Fax System
Radio System
; Radio - 100 wau
fe Radio - S watt
le Radio Gang Charger
'e Radio Single Charger
e Radio Spare Batteries
Communications Eqnipment
puter EquipmendSoftware
HA Software
FiIE Software
fFA II Windows and Supporting Maps
C�npatible PC, Printer and Modem
6
1
1
2
��
1
12 pr.
12 pr
12 pr.
12 pr.
12 pr.
12 pr.
24 pr.
6 pr.
6
2
4
4
20
24
1 cs
2
2
1
2 bxs.
1
1
Selected Teams
1
3
1
l
3
1 set
8. �� (North Metro Chemical Assessment Team)
Pagc 14
Monitoring and Uetection Equipment
Air Sampling Systcm
SpilFyter Kit
�-IazCat Kit
Colorimetric Detection Tube Kit
Dosimeters
Draeger CMS Kit
Drum Sampfer
4 Gas Monitor
4 Gas Monitor Calibration Gas
Radiological Monitor
WeatherPak Meteorological Station
Basic Suppression Equipment
Polar/Non-Polar Foam (75 gai.)
Class D Powder
Foam Eductor
Foam Application Nozzle - ATFF / ATC
Foam Application Nozzle - 65:1
Mitigation Supplies and Equipment
Citric Acid, 30 gals.
Soda Ash, 401b. bags
Spill-X Aci� Neutralizer, 5 gal.
Spill-X Caustic Neutralizer, 5 gal.
Spill Containment Supplies and Equipment
AUsorbent Booms/Pads/Pillows
Containment Boom - 75 ft.
Drysorb 'I�pe Absorbent, 401b.
Lab P�ks
' Magic Sorb, 251b. bags .
' Ptug N Dike J Ber►tonite Clay, 5 gal. pail
Poly Overpack Drum, 95 gal.
Poly Overpack Drum, 65 gal.
SpiLstopper Drain Cover Mat
Steel Salvage Drum, $S gal. _
' Stee1 Salvage Drum, 55 gal.
' Steel Salvage Drum, 30 gal. ..
'' Steel Salvage Drum, 15 gal. �
I Stcel Salvage Drum, 8 gal.
Two Wheel Drum Truck
Assorted Non-Sparking and Hand Tools
Non-sparking Bung Wrench
Non-sparking Scoop Shovels
' Non-sparking Square Nose Shovels
' Steel Spade Shovels
incident Management and Administrative Supplies and Equipment
ICS Ves[ System
Vehicle and Trailer
Chevrolet Suburban, 3/4 Ton 4 Wheel Drive and Components
600 watt inverter
Battery Conditioner
Electric Trailer Brake System
�1
i set
1
4
- 1 set
2
1
2
2
4
(North Metro Chemicai Assessment Team)
8�ZO Page IS
Elect�aiic Eitgine !dler
Emcrgency Lighting Systenr
Passenger Safety Screen
Radio Console
Roll-out Storage Tray
Siren System
StreamLite Nand Lanterns and Chargers
Trailer Hitch and Wiring
16 Foot Pace American Hazardous Materials Equipmeni Trailer and Components
Electric Trailer Jack
Emergency Light Warning System
Metal Shelving
Propane Bottles, 40 !6
8■2 � (NoAhMetroChemicalAssessmentTeam)
Pagc lb
APPEND[X E
Descrip(ion of CONTRACTOR'S Sin�ic Point of Contact for Tcam Dispalct�ii�g
CONTRAC'POR'S singie point of contact for purposes of team dispatching is described as follows:
For purposes of this agrecment, CONTRAC"POR'S single point of contact for purposes of team dispatching is located at the Anol�:i
County Central Communications, Anol:a County Courthouse, 325 Main Street, Anoka, Minnesota, 55303.
The 24 hour emergency telephone number for purposes of team dispatching is 612-427-1212.
'the non-emergency telephone number is 612-323-5800.
The person responsible for operation of CONTRACT�UR'S sinsle point of contact is John TondinQ, Supervisor, Anoka County
�ourthouse, 325 Main Street, Anola, Minnesota, 55303. � y
{Nonh MeUo Chemical Assessment Team)
■�� Page 17
A��r�crvnix r-
List of Dcsignccs of thc STATE'S Authorizcd Agents
STATE'S Authorized Agents:
Thomas R. Brace
James D. Franklin
Designees of STATE'S Authorized Agents:
Bob Dahm
Fd Leier
Kevin Leuer
Staie Fire Marshal
Director - Division of Emergency Management
MN State Fire Marshal Division
MN Division of Emergency Management
MN Division of Emergency Management
Other persons identified by the STATE to CONTRACT�OR in writing.
Authority of Designees:
Clause II, SecUon A, Item 2
Clause II, Section A, Item 4
Clause II, Section B, Icem i
Clause XI, Section B
Authorization to approve Contractor's Compensation budget deviadons of 20°l0 or less.
Authoriza6on to approve Emergency Response Compensation in excess of $5,000.00.
Authorizatiori to approve invoices for Contractor's Compensation and Emergency
Response Compensation.
A.uthorizarion tu� approve publicity or �blications pnepaned by or for th� CONIRAC-
TOR.
The undersigned hereby delegate the authorilies listed above to those persons identif'ied as Designees of STATE'S Authorized
Agents. These authorities are delegated until revoked in writina.
Thomas R. Brace
Minnesota State Fire Marshal
James D. Franklin
Director - Minnesota Division of Emergency Management
Date
Date
(Nonh MetroChemscal Assessment Team)
8�23 Page IS
APPEND(X G
List of CONTRACTOR'S Primary and Alternate Rcpresentatives
to the Har;crdous Matcrials Regionat Res�r�sc Team Prvaram
Team Advisory Commiitec
CONTRAC"POR'S primary and alternate representatives to the Hazardous Materials Regional Res�nse Team Program Team Advisory
Committee are as follows:
I. Primary Representative
Chuck McKusick, Chief
Fridley Fire Department
6431 University Avenue
Fridley, Minnesota 55432
II. Alternate Representative(s)
John Berg
Rick Bistodeau
Clint Coppicus
Kim Herrmann
Richard Larson
Fridley Fire Department
6431 University Avenue
Fridley, Minnesota 55432
Ron Nevala .
Wayne Anderson
Tim GiLsivd
Dennis Jones
Chuck Schiemo
Coon Rapids Fire Station One
1460 Egret Avenue
Coon Rapids, Minnesota 55433
Don Kruger
Jay Bohan
Tun Hawley
Brad Matti
Rod Vold
SBM F'u�e Station One
1710 Hwy 10
Spring Lake Park, Minnesota SS432
(Ncmh MetroChi:mical Asse.sment'1'emn)
8■24 Page 19
i IN WITNESS Wf�EREOF, thc partics have caused this contract to be duly cxecutcd intcndin� to bc bound thercby.
APPROVED:
1. CONTRACTOR:
CONTRACTOR certifies that the appropriate person(s) have
executed the contract on behlaf of the CONTRACTOR as
required by applicable articles, by-laws, resolutions, or
ordinanaces.
sy
'I Tide
Date
I
By
Titic
Date �
STATE AGENCY:
As to form and execution by the
3. ATTORNEY GENERAL:
By
Title
Date
4. COMMISSIONER OF ADNIIMSTRATION:
By
r�c1e
Date
Distribution:
Agency - Original (fully executed) contract
Department of Administration
Contractor
State A�thorized Repre.sentative
(Nath MetroCF�emical Assessment Team)
■ 5 Pagc 20
/
� LICENSES
CffY QF
FRIDLEY
ELECTRICAL
Berndt Electric Service Inc
6528 W Lake St STE G
Minneapolis MN 55426 Richard Bemdt
Electric Systems of Anoka Inc
6314 Hwy 10 NW
Anoka MN 55303 Terry Lehn
Weber Electric Inc
577 Shoreview Park Rd
Shoreview MN 55126 Stephen Weber
GAS SERVICES
Flaze Heating & AC
9303 Plymouth Ave N
Golden Valley MN 55427-3126 Tiffany Sellner
GENERAL CONTRACTOR COMI��RCIAL
Holle Construction Co Inc
1855 Melrose Ave S
Minneapolis MN 55426 Jef Holle
Richmar Construction Inc
7776 Alden Way NE
Fridley MN 55432 Richard Netz
Rite Way Waterproofmg
448 Lilac St
Lino Lakes MN 55014-1054 Charlene Messerich
Stahl Construction Co
5900 Rowland Rd
Minnetonka MN 55343 Sharon O'Brien
GENERAL CONTRACTOR-RESIDENTIAL
Design Craft Builders Inc ( )
1128 W 7 St
St Paul MN 55102� Tim Christensen
10.02
STATE OF MINN
Same
Same
RON JULKOWSKI
Chief Bldg Ofcl
RON JULKOWSKI
Chief Bldg Ofcl
Same
Same
Same
STATE OF MINN
Douglas Builders & Remodelers Inc (1928)
11960 Chisago Blvd
Chisago City MN 55013
Goodell Construction (6963)
1998 Rice Creek Rd
New Brighton MN 55112
Henriksen Leif Builder (3510)
6434 Riverview Ter NE
Fridley MN 55432
JTW Company (20007140)
13415 54 Ave N
Plymouth MN 55442-1767
Kodiak Construction (8608)
2607 Brighton NE
Minneapolis MN 55418
Mohs Contracting (20064597)
5530 135 St W
Savage MN 55378
PEM Millwork (20070628)
5671 International Pkwy
New Hope MN 55428
Plumbline Builders Inc (2939)
79AveN
Hopkins MN 55343
Werni Timm & Assoc Inc (20071652)
3001 Lincoln St NE
Minneapolis MN 55418
HEATING
Construction Mechanical Services
1307 Sylvan St
St Paul Mn 55117-4605
Flare Heating & Air Cond
9303 Plymouth Ave N
Golden Valley MN 55427-3126
Sheryl Shand
Wayne Goodell
Leif Henriksen
Jerry Wold
Robin Mysliwiec
Steve Mohs
Marvin Schenk
Roger Sirany
Jeff Timm
Jerry Elert
Tiffany Sellner
10.03
Same
Same
Same
Same
Same
Same
Same
Same
Same
RON JULKOWSKI
Chief Bldg Ofcl
Same
Northwestern Service Inc
791 Hampden Ave
St Paul MN 55114
PLUMBING
Gavic & Sons Plumbing
12725 Nightengale St NW
Coon Rapids MN 55448
Mid City Mechanical Corp
9107 Davenport St NE
Blaine MN 55449
Stepaniak Constxuction Co
2839 196 Ave NE
East Bethel MN 55011
SIGN ERECTOR
Pride Neon Inc
3010 W 10 St
Sioux Falls SD 57104-6204
Frank Osland
Paul Gavic
James Poser
Jerry 5tepaniak
Dick Menke
10.04
Same
STATE OF MINN
STATE OF MINN
Same
RON JULKOWSKI
Chief Bldg Ofcl
� ESTIMATES
� oF AUGUST 12, 1996
FRIDLEY
Frederic W. Knaak, Esq.
Holstad and Larson, P.L.C.
3535 Vadnais Center Drive
St. Paul, MN 55110
Services Rendered as City Attorney
for the Month of July, 1996 : . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,035.79
Newquist & Ekstrum, Chartered
301 Fridley Plaza Office Building
6401 University Avenue N.E.
Fridley, MN 55432
Services Rendered as City Prosecuting
Attorney for the Month of May, 1996 : . . . . . . . . . . . . . . . . . . .- . $ 15,157.31
Schield Construc#ion Co.
13604 Ferris Avenue South
Appie Valley, MN 55124
Stonybrook Creek Bank Restoration
Project No. 246
Estimate No. 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 36,754.03
Hardrives lnc.
14475 Quiram Orive
Rogers, MN 55374-9461
Street lmprovement Pro�ect
No. ST. 1995 - 1& 2
Estimate No. 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $123,392.46
�
TO: WILLIAM W. BURNS, CITY MANAGER �,��
FROM: RICHARD D. PRIBYL, FINANCE DIRECTOR
SUBJECT: RESOLUTION CONSENTING TO THE HOUSING AND
REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF
FRIDLEY ADOPTING 1996 TAX LEVIES COLLECTIBLE IN 1997
DATE: August 7, 1996
Attached you will find a resolution that will approve the certification of a new ta�c levy, and
supporting documentation from the Community Development Department. The information
provided by Community Development describes the need for the levy and its impact on
property owners in Fridley. This new tax is one that is supported by the Housing and
Redevelopment Authority and must be approved by the City to be effective. At the
Housing and Redevelopment Authority's meeting on July 11; 1996, they discussed and
approved the levy via HRA Resolution #12. -
This type of levy is allowed by State Statute #469.033 and is based on .0131% of total
market value within the City. The resolution also includes a relocation levy which is based
on .0013% of total market value within the City.
The Fridley taxable market value for pay 1996 is $1,173,561,700. The general levy wauld
raise $153,737. The relocation levy would raise $15,256. This is a combined levy amount
of $168,993. This is slightly in excess of the amount we had estimated because the City's
tatcable value has increased over the last two years.
This levy would be the basis for the repayment mechanism for the new revolving loan
program that will be legislated by the City Council in the very near future.
RDP/me
Attachment
12.01
RESOLUTION NO. — 1996
A RESOLUTION CONSENTING TO THE HOUSING AND
REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF
FRIDLEY ADOPTTNG 1996 TAX LEVIES COLLECTIBLE
IN 1997
BE IT RESOLVED by the City Council (the "Council") of the City of
Fridley, Minnesota (the °City"), as follows:
Section 1. Recitals.
1.01. The Housing and Redevelopment Authority in�and for the
City of Fridley (the „Authority°) at its regular meeting
on July 11, 1996 adopted the attached HRA Resolution No.
12 - 1996: A Resolution Adopting 1996 Levies Collectible
in 1997.
1.02. The Council must consent to any Authority levy prior to
its becoming effective as required by Minnesota Statutes
Section 469.033.
Section 2. Consent.
2.01. The Council-hereby consents to the HRA Resolution and to
levies described therein.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS
DAY OF , 19g .
WILLIAM J. NEE - MAYOR
ATTEST:
WILLIAM A. CHAMPA - CITY CLERK
12.02
HRA RESOLUTION NO. 12 - 1996
A RESOLUTION ADOPTING 1996 TAX LEVIES
COLLECTIBLE IN 1997
BE IT RESOLVED by the Board of Commissioners (the
"Commissioners") of the Housing and Redevelopment Authority in
and for the City of Fridley, Minnesota (the ^Authority"), as
follows:
Section 1. Recitals.
1.01. The Authority is authorized by Minnesota Statutes
Section 469.033 to adopt a levy on all taxable property
within its area of operation, which is the City of
Fridley, Minnesota (the "City").
1.02. The Authority is authorized to use the amounts
collected by the levy for the purposes of Minnesota
Statutes Sections 469.001 to 469.047 (the "General
Levy")
1.03. The Authority is further authorized
of an additional levy to defray the
informational service and relocation
forth in Minnesota Statutes 469.012,
"Relocation Levy").
Section 2.
2.01.
Section 3.
Findincrs .
to use the proceeds
costs of providing
assistance as set
Subdivision 1 (the
The Authority hereby finds that it is necessary and in
the best interests of the City and the Authority to
adopt the General Levy and the Relocation Levy to
provide funds necessary to accomplish the goals of the
Authority and in furtherance of its Modified
Redevelopment Plan.
Adoption of General Lev .
3.01. The following sums of money are hereby levied for the
current year, collectible in 1997, upon the taxable
property of the City for the purposes of the General
Levy described in Section 1.02 above:
Total General Levy: .0131$ of Taxable Market Value
Amount: Maximum Allowed by Law
12.03
HRA Resolution No. 12 - 1996 - Page 2
Section 4. Ado�tion of Relocation Lev .
4.01. The following sums of money are hereby levied for the
current year, collectible in 1997, upon the taxable
property of the City for the purposes of the Relocation
Levy described in Section 1.03 above:
Total Relocation Levy: .0013$ of Taxable Market Value
Amount: Maximum Allowed by Law
Section 5. Report to Citv and FilinQ of Levies.
5.01. The executive director oi the Authority is hereby
instructed to transmit a certified copy of this
Resolution to the City Council for its consent to the
levies.
5.02. After the City Council has consented by resolution to
the levies, the executive director of the Authority is
hereby instructed to transmit a certified c�py of this
Resolution to the county auditor of Anoka County,
Minnesota. .
PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN
AND FOR THE CITY OF FRIDLEY THIS 11TH DAY OF JULY, 1996.
LAWRENCE R. COMMERS - CHAIRMAN
ATTEST:•
WILLIAM W. BURNS - EXECUTIVE DIRECTOR
12.04
MEMORANDUM
PLANNING DIVISION
DATE: August 8, 1996
TO: William Bums, City Manager
FROM: Barbara Dacy, Community Development Director
Grant Fernelius, Housing Coordinator
SU BJ ECT: H RA Tax Levy .
On July 11, 1996, the Fridley HRA passed a resolution adopting a tax levy for taxes
payable in 1997. The HRA's intent is to .utilize the levy revenue to support a revohiing •
loan program for single family housing rehabilitation. The City Council, as required
by state law, must adopt a resolution on annual basis consenting to the HRA tax levy.
The HRA tax levy is one component of the proposed housing rehabilitation program;
the second is a$1.5 million loan from the City to the HRA to capitalize the program.
It should be emphasized that both components are critical to establishing a revolving
loan program. Given the competing neetfs for the HRA's funds, eliminating either one
will severely limit its ability to address housing rehabilitation needs.
How it Works
The tax levy will be used to support repayment of the Ciiy's loan to the HRA. The
levy will generate $168,993 in 1997 or .0013% of the total market value within the City.
The loan amount to the HRA is proposed to be $1.5 million with a 5% interest rate
and a term of 15 years. The attached Schedule A describes some of the program
assumptions. Beginning in 1997 the loan pool will support 32 loans per year and
uftimately support 60 loans per year by 2013.
At the end of 15 years, the City's loan will be repaid with interest and a total of 596
loans will have been made. The tax levy would remain in place for another 5 years
to help build-up the fund to make additional loans. Beyond 2016 the program could
be seff-sustained on the annual home improvement loan repayments of approximately
$650,000 which could fund 54 loans at an average of $12,000 each. The proposed
loan agreement with the HRA will be discussed at the August 26, 1996 Council
meeting.
12.
H RA Tax Levy Mem o
August 8, 1996
Page 2
As a final note, we must emphasize that the proposed tax levy creates the funding
mechanism to establish a self-supporting program. The HRA and CEE have other
programs in place to address multiple family rehabilitation needs. In addition, the
HRA is considering several options on what to do with the City's severely deteriorated
multiple family housing stock.
Suaportinq Reasons for Tax Levy and Revolving Loan Proaram
>) Age and Condition of Housing S�ock
Like many first-ring suburbs, Fridley has a significant number of older housing
units.
Year
Built
1960-69
1950-59
1940-49
Effective
Age
27-36 yrs.
37-46 yrs.
47-56 yrs.
Number
of Units
2,774
3,954
550
7.278
Percentage
of To#al
24%
34%
4%
�
As you can see, over half of the City's housing stock is approaching 30 years
of age. Many of these units are well maintained and attractive. However,
some of these older units (40+ years) are in need of substantial repair. Based
on a 1994 housing condition study it is� estimated that 900 + uni#s
(approximately 14% of all homes) are in need of some form of rehabilitation.
!n general, older housing typicaNy presents two challenges:
a) The replacement of basic items such as roofs, windows, siding,
electrical, plumbing and other mechanical sys#ems. The situation is
ampNfied when maintenance has been deferred and multiple repairs are
required at the same time, and
b) The marketability and attractiveness of older homes due to dated
appearance, lack of amenities such as attached garages, more
bedrooms, walk-in closets, "great rooms" and more square footage.
12.06
H RA Tax Levy Mem o
August 8, 1996
Page 3
A well designed program can address both of these issues, providing for basic
needs and value-added improvements.
2J Meeting Needs of Unsen�ed Ma�ret
The HRA's programs are helping those families who would otherwise be
unable to obtain private financing. By assisting these owners the HRA is
helping owners who would probably not complete the improvements.
3) Proactive .�o,oroach
The HRA tax levy and revolving {oan program represents a proactive
approach to addressing housing conditions and neighborhood stability. In
addition to basic home improvements, the HRA is also assisting families who
want to remain in Fridley by offering affordable financing to do more significant
improvements such as bedroom additions and garages. The HRA is in the
position of heading off problems now, rather than responding to a crisis in the
future.
4) HR4 Fund Ba/ances
HRA fund balances are projected to decline significantly during the next 15
years due to continued housing and commercial redevelopment activities. With
the tax levy in place, the HRA can make approximately 750+ loans totallin�
$9.312 million over the next 20 years. Without the levy, the HRA would have to
use a substantial amount of its #unds to achieve the same number of loans
leaving less for other redevelopment projects like the Southwest Quadrant,
Frank's Used Cars and other priorities.
5) /nsufficient Federa/ Funding
Federal funding is insufficient to address all of Fridley's housing needs. At the
state and County level there is increasing competition for funds. Therefore, it
becomes necessary to find local funding sources. In addition, the tax levy
r�presents a local commitment to addressing housing needs.
Impact to Property Owners
The owner of an $88,000 home will pay $11.53 per year. An industrial property owner
with a building valued at $1,000,000 will pay $1,244.50 per year.
12.07
H RA Tax Levy Mem o
Aug ust 8, 1996
Page 4
Recommendation
Staff recommends that the City Council approve the resolution consenting to an HRA
tax levy for taxes payable in 1997. A copy of both the HRA and Council resolutions
are attached to the memo from the Finance Department.
BD\gf
.. �.
12.08
SCHEDULE A
FINANCIAL ANALYSIS FOR REVOLVING LOAN PROGRAM
Attached is a cash flow analysis and quarterly recap for the
Revolving Loan Program. Included below is a brief description of
the analysis.
1. GENERAL ASSUMPTIONS
(a) Home improvement loans may be issued for either single
family or multiple family units.
(b) Average loan amount of $12,000 per unit.
(c) Average loan term of 12 years.
(d) Average loan rate of 5.00Oo.
(e) Loans are issued in the first quarter of 1997 and every
quarter thereafter for 20 years, terminating in the
last quarter of 2016. In the first 20 years of the
program a total of 776 loans at $12,000 per loan or
$9.312 million will be issued based on the following
assumptions: .
8 loans per quarter or 32 per year in 1997_- 2002
7 loans per quarter or 28 per year in 2003 - 2008
11 loans per quarter of 44 per year in 2009 - 2012
15 loans per quarter or 60 per year in 2013 - 2016
2. QUARTERLY REVENUES (see cash flow)
The proposed revenues, which approximate $11.595 million,
consist of the following potential sources:
(a) City loan of $1.5 million to the HR.A during the first
quarter of 1997 payable at 5.000% over 15 years.
(b) HRA levy providing approximately $75,000 semi annually
and totalling $3.0 million from 1997 through 2016.
(c) HR.A grant(s) to be provided by the HRA if and when
required; no grants are included in this scenario.
(d) Home improvement loan repayments from the issuance of
776 loans over 20 years and which approximate $7.588
million. From this amount a ioan reserve of 2.5% and
servicing expenses of 4.0% are deducted leaving a net
of $7.095 million.
12.09
3. QUARTERLY EXPENSES (see cash flow)
The proposed expenses, which approximate a$11.648 million,
include the following potential categories:
(a) Home improvement loans issued as described in Section 2
above and which total $9.312 million.
(b) HRA payments to the City in the semi annual amount of
$71,666.46 and which approximate $2.150 million at the
rate and term described in Section 2(a) above.
(c) Origination Expenses of $186,240, based on 2.000% of
the total principal amount of hame improvement loans.
4. QUARTERLY INTEREST (see cash flow)
This additional source of revenue assumes interest is earned
quarterly at S.00Oo per annum on the difference between
revenues and expenses; it approximates $297,533 through
2016.
5. ENDING BALANCE (see cash flow)
This column simply reflects revenues of $11.595 million less
$11.648 million in expenses plus $297,533 in interest
earnings for an ending balance in December 2016 of $244,862.
The three columns on the right side of the analysis represent the
number of loans issued per quarter, per year and cumulatively.
12.10
CITY OF FRIDLEY, MINNESOTA
CASH FLOW
Period Beginning Quarterly Quarterly Quarterly Ending Loans/ LoansJ Cum
Ending Balance Revenues Expenses Interest Balance Quarter Year Loans
03/01 /97
06/01 /97
09/01 /97
12/Ot /97
03/01 /98
06/01 /98
09/01 /98
12/01 /98
03/01 /99
06/01 /99
09/01 /99
12/01 /99
03/01 /2000
06/01 /2000
09/01 /2000
12/01 /2000
03/01 /2001
06/01 /�001
09/01 /2001
12/01 /2001
03/01 /2002
06/01 /2002
09J01 /2002
12/01 /2002
03J01 J2003
06/01 /2003
09/01 /2003
12/01 /2003
03/01 /2004
06/01 /2004
09/01 /2004
12/01 /2004
03/01 J2005
06/01 /2005
09/01 /2005
12/01 /2005
03/01 /2D06
06/01 /2006
09/01 /2006
12/01 /2006
03/01 /2007
06/01 /2007
09/01 /2007
12/01 /2007
03/01 /2008
06/01 /2008
09/01 /2008
12/01 /2008
03/01 /2009
0.00
1,422,127.68
i ,349,178.83
1,274,464.60
1,204,713.32
1,133,236.62
1,066,763.35
998,605.63
935,492.82
870,737.57
811,069.77
749,802.58
693,666.44
635,975.07
583,459.44
529,433.83
480,629.79
430,362.17
385,363.09
338,947.98
297,849.57
255,383.90
218,284.30
179,867.42
146,867.21
124,678.76
107,794.63
89,530.70
76,620.15
62,379.48
53,542.48
43,426.27
38,76528
32,877.30
32,497.38
30,943.98
34,952.83
37,843.06
46,351.09
53,796.72
66,917.11
79,032.75
96,881.52
i 13,784.65
136,480.75
158,291.81
185,957.19
212,799.64
245,559.29
1,502,490.54
79,981.09
7,471.63
84,962.18
12,452.72
89,94327
17,433.81
94,924.36
22,414.90
99,905.45
27,395.99
104,886.54
32,377.08
109,867.63
37,358.17
114,848.72
42,33926
119,829.81
47,320.35
124,810.90
52,301.44
129,791.99
57,282.�3
134,773.08
61,952.30
139,131.53
66,310.76
143,489.38
70,669.21
147,848.44
75,027.67
152206.89
79,386.12
156,565.35
83,744.57
160,923.80
88,103.03
165,282.25
92,461.48
169,640.71
96,819.93
173,999.16
101,178.39
178,357.61
105,536.84
182,716.07
109,895.29
187,074.52
113,008.48
97,920.00
169,586.46
97,920.00
169,586.46
97,920.00
169,586.46
97,920.00
169,586.46
97,920.00
169,586.46
97,920.00
169,586.46
97,920.00
169,586.46
97,920.00
169,586.46
97,920.00
169,586.46
97,920.00
169,58fi.46
97,920.00
169,586.46
97,920.00
169,586.46
85,680.00
157,346.46
85,680.00
157,346.46
85,680.00
157,346.46
85,680.00
157,346.46
85,680.00
157,346.46
85,680.00
157,346.46
85,680.00
157,346.46
85,680.00
157,346.46
85,680.00
157,346.46
85,680.00
157,346.46
85,680.00
157,346.46
85,680.00
157,346.46
134,640.00
17,557.13
16,656.53
15,734.13
14,873.00
13,990.58
13,169.92
12,328.46
11,549.29
10,749.85
10,013.21
9,256.82
8,563.78
7,851.54
7,203.20
6,536.22
5,933.70
5,313.11
4,757.57
4,184.54
3,677.16
3,152.89
2,6J4.87
2,220.59
1,813.18
1,539.24
1,330.80
1,105.32
945.93
770.12
661.02
536.13
478.58
405.89
40120
382.02
431.52
467.20
572.24
664.16
826.14
975.71
1,196.07
1,404.75
1,684.95
1,954.22
2,295.77
2,627.16
3,031.60
2,799.10
1,422,127.68
1,349,178.83
1,274,464.60
1,204,713.32
1,133,236.62
1,066,763.35
998,605.63
935,492.82
870,737.57
811,069.77
749,802.58
693,666.44
635,975.07
583,459.44
529,433.83
480,629.79
430,362.17
385,363.09
338,947.98
297,849.57
255,383.90
218,284.30
i 79,867.42
146,867.21
124,67.8.76_
107,794.63
89,530.70
76,620.15
62,379.48
53,542.48
43,426.27
38,765.28
32,877.30
32,497.38
30,943.98
34,952.83
37,843.06
46,351.09
53,796.72
66,917.11
79,Q32.75
96,881.52
113,784.65
136,480.75
158,291.81
185,957.19
212,799.64
245,559.29
226,726.87
PREPARED BY CASSERLYMOLZAHN & ASSOCIATES, INC.
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32 32
32 64
32 96
32 128
32 160
32 192
28 220
2$ 248
28 276
28 304
28 332
28 360
17-May-96
CITY OF FRIDLEY, MINNESOTA
CASH FLOW
Period Beginning Quarterly Quarterly Quarterly Ending Loans/ Loans/ Cum
Ending Balance Revenues Expenses Interest Balance Quarter Year Loans
06/01 /2009
09/01 /2009
12/01 /2009
03/01 /2010
06/01 /2010
09/01/20i0
12/01 /2010
03/01 /2011
06/01 /2011
09/01 /2011
12/01/2011
03/01 /2012
06/01 /2012
09/01 /2012
12/01/2012
03J01 /2013
06/Oi /2013
09/01 /2013
12/01 /2013
03/01 /2014
06/01 /2014
09/01/2014
12/01/2014
03/01 /2015
06/01/2015
09/01 /2015
12/01/2015
03/01 /2016
06/01 /2016
09/01 /2016
12/01 /2016
RLP1
226,726.87
211,979.87
194,6i 8.96
181,361.87
165,509.49
153,779.79
139,473.89
129,310.01
116,589.49
108,030.81
96,935.56
90,022.46
80,593.37
147,929.54
141,115.55
211,099.50
158,655.23
183,699.36
135,325.52
164,490.97
120,289.95
153,680.39
113,757.18
151,478.90
116,256.3�
159,052.61
128,968.05
176,966.61
152,149.33
205,481.00
186,063.50
188,942.43
114,876.38
190,810.34
116,744.29
192,678.25
118,612.20
194,546.16
120,480.11
196,414.06
122,348.02
198,281.97
124,215.93
200,149.88
i 26,083.84
202,017.79
129,197.02
206,376.24
133,555.47
210,734.70
137,913.92
215,093.15
142,272.38
219,451.60
146,942.15
224,432.69
151,923.24
229,413.7$
156,904.33
234,394.87
161,885.42
239,375.96
206,306.46
134,640.00
206,306.46
134,640.00
206,306.46
134,640.00
206,306.46
134,640.00
206,306.46
134,640.00
206,306.46
134,640.00
134,640.00
134,640.00
134,640.00
183,600.00
183,600.00
183,600.00
183,600.00
183,600.00
183,600.00
183,600.00
183,600.00
183,600.00
183,600.00
183,600.00
183,600.OQ
183,600.00
183,600.00
183,600.00
183,600.00
2,617.04
2,402.70
2,239.04
2,043.33
1,898.52
1,721.90
1, 596.42
1,439.38
1,333.71
1,196.74
1,111.39
994.98
1,826.29
1,742.17
2,606.17
1,958.71
2,267.89
1,670.69
2,030.75
1,485.06
1,897.29
1,404.41
1,870.11
1,435.26
�,sss.s�
1,592.20
2,184.77
1,878.39
2,536.80
2,297.08
3,022.99
211,979.87
194,618.96
i 81,361.87
165,509.49
153,779.79
139,473.89
129,310.01
116,589.49
108,030.81
96,935.56
90,022.46
80,593.37
147,929.54
141,115.55
211,099.50
158,655.23
183,699.36
135,325.52
164,490.97
120,289.95
153,680.39
113,757.18
151,478.90
11 fi,256.31
159,052.61
128,9fi8.05`
178,966.61
152,149.33
205,481.00
186,063.50
244,862.46
11
11
11
11
11
11
11
11
11
11
�1
11
11
1i
11
15
15
15
15
15
15
15
15
15
15
15
15
�5
15
15
15
44 404
44 448
44 492
44 536
C�� • •
:� . .
60 716
60 776
11,595,562.44 11,648,233.83 297,533.85 244,862.46 776 776 776
Interest Rate 5.000%
12.12
PREPARED BY CASSERLY MOLZAHN & ASSOCIATES, INC.
17—May-96
C1TY OF FRIDLEY, MINNESOTA
QUARTERLY RECAP
Period Ending Loans Loans Loans Outstanding
Ending Baiance /Qua�ter /Year Cum Principai
03/01 /97 1,422,127.68 8 94, 530.21
06/01 /97 1, 349,178.83 8 187,572.18
09/01 J97 1,274,464.60 8 279,107.22
12/01 /97 1,204,713.32 8 32 32 369,116.43
03/01 /98 1,133,236.62 8 457,580.65
06/01 /98 1,066,763.35 8 544,480.49
09/01 /98 998,605.63 8 629,796.32
12/01 /98 935,492.82 8 32 64 713,508.24
03J01 /99 870,737.57 8 795,596.12
06/01 /99 811,069.77 8 876,039.59
09/01/99 749,802.58 8 954,818.00
12/01 /99 693,666.44 8 32 96 1, 031, 910.45
03/01 /2000 635,975.07 $ 1,107,295.78
06/01 /2000 583,459.44 8 1,180,952.55
09/01 /2000 529,433.83 8 1,252,859.08
12/01/2000 480,629.79 8 32 128 1,322,993.40
03/01 /2001 430,362.17 8 1,391,333.25
06/01 /2001 385,363.09 8 1,457,856.11
09/01 /2001 338,947.98 8 1,522,539.19
12/01 /2001 297,849.57 8 32 160 1,585,359.37
03/01 /2002 255,383.90 8 1,646,293.29
06/01 /2002 218,284.30 8 1,705,317.26
09/01 /2002 179,857.42 8 1, 762,407.31
12/01%2002 146,867.21 8 32 192 1,817,539.16
03/01 /2003 124,678.76 7 • _ 1,858,871.97
06/01 /2003 107,794.63 7 1,898,583.14
09/01 /2003 89,530.70 7 1,936,049.81
12/01/2003 76,620.15 7 28 220 1,971,848.83
03/01 /2004 62,379.48 7 2,005,756J6
06/01 /2004 53,542.48 7 2,037,749.85
09/01 /2004 43,426.27 7 2,067,804.08
12J01/2004 38,76528 7 28 248 2,095,895.11
03/01 /2005 32, 877.30 7 2,121, 998.29
06/01 /2005 32,497.38 7 2,146,08$.67
09/01/2005 30,943.98 7 2,168,140.99
12/01 /2005 34,952.83 7 28 276 2,188,129.67
03/01/2006 37,843.06 7 2,206,028.80
06/01 /2006 46,351.09 7 2,221,812.15
09/01 /2006 53,796.72 7 2,235,453.17
12/01 /2006 66,917.11 7 28 304 2,246,924.97
03/01 /2007 79,032.75 7 2,256,200.31
06J01 /2007 96,881.52 7 2,263,251.63
09/01 /2007 113,784.65 7 2,268,051.00
12J01/2007 136,480.75 7 28 332 2,27Q,570.18
03/01/2008 158,291.81 7 2,270,780.52
06/01 /2008 185,957.19 7 2,268,653.06
09J01 /2008 212,799.64 7 2,264,158.44
12/Ot/2008 245,559.29 7 28 360 2,257,266.96
03/01 /2009 226,726.87 11 2,297,888.43
12.13
PREPARED BY CASSERLY MOLZAHN & ASSOCIATES, INC. 20—May-96
CiTY OF �i�IDLEY, MINNESOTA
QUARTERLY RECAP
Period Ending Loans Loans Loans Outstanding
Ending Balance /Quarter /Year Cum Principal
06/01 /2009 211,979.87 11 2,338,016.74
09/01/2009 194,618.96 1 i 2,377,645.69
12/01/2009 181,361.87 11 44 404 2,416,769.03
03/01/2010 165,509.49 11 2,455,380.39
06/01 /2010 153,779.79 11 2,493,473.37
09/01 /2010 139,473.89 11 2,531,041.44
12/01J2010 129,310.01 11 44 448 2,568,078.02
03/01 J2011 116,589.49 11 2,604,576.44
06/01 /2011 108,030.81 11 2,640,529.95
09/01 /2011 96, 935.56 1 � 2, 675, 931.70
12/01/2011 90,022.46 11 44 492 2,710,774.77
03/01 /2012 80,593.37 11 2,745,052.15
06JOi /2012 147,929.54 11 2, 778, 758.73
09/01 /2012 141,115.55 11 2,811,881.33
12/01 /2012 211,099.50 11 44 536 2,844,418.66
03/01 /2013 158,655.23 15 2,923,626.47
06/01 /2013 183,699.36 15 3,001,488.05
09/01 /2013 135,325.52 15 3,077,986.51
12J01 /2013 164;490.97 15 60 596 3,153,104.75
03/01 /2014 i 20,289.95 15 3,226,825.43
06/01 /2014 153,680.39 15 � 3,299,131.02
09/01 /2014 113,757.18 15 . 3,370,003J5
12/01 /2014 t 51,478.90 15 60 65& 3,439,425.64
03/01 /2015 116,256.31 15 3,507,044.12
06/01/2015 159,0�2.61 15 � 3,572,836.56
09/01/2015 128,968.05 i 5 3,636,780.04
12/01 /20i 5 176,966.6i 15 60 � 716 � 3,698,851.35
03/01 /2016 152,149.33 15 3,759,027.00
06/01 /2016 205,481.00 15 3, 817,283.17
09/01/2016 186,063.50 i 5 3,873,595.79
12/01/2016 244,862.46 � 15 60 776 3,927,940.46
244,862.46 776 776 776
3,927,940.46
� 12.14
RLP1 PREPARED BY CASSERLY MOL.ZAHN & ASSOCIATES, INC. 20—May-96
HRA Levy Is Based Or� T�xable Market Value
Tax on home valued at $88,000
axabie Value $ 88,000
Levy 0.0131 %
Dollars Levied ��� ��v� "�����`;
> ; . .: : . . . . . . . . . . . . . . . . . : } . . : : . . . . . . . . . . . : x :
}h�.>�ii•i}yvryv:y�'4{ryr "' '�" '�"""v�,x
Tax_on /ndustria/Proper�y(1)•- _
� f
axable Vafue $ 9,500;000 _
Levy _ 0.0�. °.
Dollars Levied - � �
= :-••�•�- � � f
... ..
- �;:;:;�,;s,.�;s y;�.. �
t, - - _
� . � _ .
(1) Represents taxabie value on Electronic �Hai� supply(oid Dow Brands)
HRALEV.XLS
._ 12.15
0
5/20/96
�
�
HOUSING � REDEDELOpMEI�TT ApTgORITY MTG. JULY 11 29g6
PAGE 10 .
IIPON A VOICE VOTB, ALL VOTZNG AYE, CHAIRPERSON COMMERg DECLARED
THE MOTION CARRIgD QNANIMDIISLY.
8- RESOLUTION AUTHORIZING AN HRA LEVY
9. RESOLUTION AUTHORIZING FUNDING FOR THE REVOLVING LOAN
PROGRAM
Mr. Commers suggested items �8 and #9 be discussed
simultaneously. These two items go hand-in-hand. As he
understands it, the �oney the City Council was to provide for the
Southwest Quadrant as proposed would be used for the revolving
housing action plan and that would then.be repaid by the levy.
Ii we do not have a levy, then what happens?
Mr. Casserly distributed copies of a Resolution Adopting 1996 Tax
Levies Collectible in 1997. The levy can be used for any I�iRA.
anthorized activities. One of the programs adopted is the
revoTving Ioan program. The levy provides a revenue stream
available to the HRA which wi11 be used to repay part af the loan
from the City. If..the City_were to Ioan the HRA $1.5 million at�
5� and the HRA.were to.make 5�-loans,-all of the loan repayments �
would . ga ta repaY._-the_�City �loan. ;•:: The =1evy. �a2lows the HRA to _
repay the City"and fund-ttie-revolving loan program. �
Ms, Schriabel stated the �1oai�- from the . City w�ill,:,cost the < HRA.� -
about $75,:OOO:pe�:Year:in'-.;interest �When lookin _
wi12 not generate�enoug�i income.to cover the interest on;�the loan �
and the loan payment.
Mr. Casserly stated the-loan will be amortized like a mortgage so
the payment will remain the same. The levy may not cover the
interest the �irst year but should in subsequent years.
Ms. Schnabel asked how much would the $1.5 million loan cost the
HRA ultimately.
Mr. Eilestad stated theoreticaily it should cost the HRA nothing.
Mr. Commers asked how they arrived at the interest rate.
Mr. Burns stated this is close to the interest rate that the City
is getting in grants and loans for other projects. It seems to
be a fair rate of return for the City.
Mr. Casserly stated he thought this was correct. In di.scussions
with Mr. Pribyl, he does get a bit better return on investments.
5$ represents a poorer return than tahat they would like to have
but with less cost then if we had to issue bonds.
�
12.16
� HOUSING & REDgpgI,ppMENT AUTHORITY MTG. JIILY 11 1996 PAGE 11
Mr. Casserly distributed copies of a Resolution Authorizing the
Funding of the Fridley Revolving Loan Program; Providing for the
Delegation of Certain Powers and Duties; Authorizing the
Execution of Documents. Attached to this resolution is a
schedule which provides an e�lanation of the cash flow. They
figured an average loan of $12,000 for 12 years at 5°s. He
reviewed the information.
Mr. Commers stated, assuming a$12,000 loan throughout the
period, in 10 years they will not be worth as much. We will have
to increase the loans or 30 less. He did not know if the number
of loans projected in the last few years was realistic. If they
did not have a levy, would it be relevant to see how that affects
our current financial status.
Mr. Casserly stated, without the levy, it is difficult to.:do this
type of program unless you take revenues out of pour existing
cash flow.
Mr. Commers stated he is wondering what that would do in terms of
what we are doing and are able to do. . ��
� Mr..Casserly stated the.HRA�now has-an opportunity to provide $3 �
million �o the revenue stream: If yon do not.da this; it would
be absorbed-out of the curre,nt.budget at $15o,U00 per year. He
thought the HRA would see increasing demands on the fund� ���
balances. .. _ _. ,,:, .... .:, -- _ .
Mr.�McFarland asked why not take $1.5 million from their existing
revenues to finance the program.
Mr. Ellestad stated the HRA has a$6 million cumulative balance.
Another way to look at it is to invest by giving out loans to be
paid back at 5$. Then figure the�eosts including a 2�
origination fee, a 4g handling and maintenance fee plus a 2�
reserve for bad debts. This is approximately 8.5� times $150,000
which would be the true operating expense for that program. That
would become another column they could add which would give the
operating cost the program.
Mr. Commers asked if the HRA would be better off doing that.
Therefore, 8.5$ plus the 5g we are paying to the City would be
the true cost of operating the program. Why borrow the money
from the City?
Mr. Casserly stated one reason is to establish a fund in order to
do the program. He thought the investment return would be better
than 5$.
. Mr. Ellestad stated the HRA investments are now making
approximately 6�. If the HRA is going to borrow from the City at
12.17
F
. 9.
:�
HOIISING & REDEVELOpMENT AUTHORITY MTG. JIILY 11 2996
PAGE 12
5g and then lending the money at 5�, it is basically a wash. The
HRA will not be using ail that money at once_ It may be possible
to invest some of it and gain some revenue.
Mr. McFarland stated the HRA will be generating income from the
loans and money from the tax levy which is building up the fund.
If you do not make a commitment up front to capitalize the HRA
monies, the fund will not grow_
Mr. Commers stated he thought, if they did not have the revenue,
the HRA would have to capitalize it themselves: His concern is
that the fund would grow less than prajected, there may be a
shortfall in 7-8 years,_and the HRA is going to be limited in
some of things they might want to do.
Mr. Casserly stated part of the purpose in approaching the matter
in this way was that so often the projects that come to the HRA
are going to be redevelopment projects. The HRA will do anly
some because staff and the resources ean only handle so many. In
the near future, the HRA will be doi.ng projects.that ar� net
losers . They will .provide some . nex�,i � revenue but, are pu�e •
redevelopment. This type of`�:program�t�ied to beco�te.self-
financing in - ths: future.. - If��►ou=<�tXeat�: each .:revolving °loan ,fund °
and provide that as.a separate:��source of�funds,�you.can continue
with Zoans. That is what you=-wi11 -try�.�to do:_.in the. future. The
HRA wili : do a•fe�t -grarii�s., But�..],oansr�are qoing to -be; the ;major ;.=�°
� housing programs ::: T�is .:tries v to :'`addr�ss . that 'and tries :to - treat
them as separate programs. '
Mr. Commers stated he was trying to figure out how badly they
need the levy, What does it add to this?
Mr. Casserly stated this essentially gives the HRA $Z,5 million
up front and capitalizes the source for�the proqram.
Mr. Fernelius asked if the tax levy really builds up a balance at
the end.
Mr. Casserly stated that is where the effect is seen. The HRA
has then paid off the loan to the City and now has a levy which
can be invested into programs without having to repay. It is
very advantageous to have the levy particularly if you do not
have to make repayments. It is to your advantage to borrow money
to fund a program up front. In the event the program is not
sound or you do not need the levy, you do not renew. This can be
discontinued at any time.
Mr. McFariand stated, if we are.going to invest
stock, that should stabilize the tax base which
percentage over time. It should be returning to
stabilizing the tax base,
12.18
in our housing
will offset that
the tax payer by
�
�
�
�
.�
� - -�;,
�
�
HOUSING � REDEV'ELOPMENT AUTHORITY MTG. JULY 11 1996 PAGE 13
Mr. Fernelius stated there is also the issue of encouraging other
improvements to be made outside of our program. There are other
positive effects for other owners. For every $1 we are
investing, there may be $2 or $3 from the private sector being
invested by owners who see people going through our program and
willing to invest in their property. There are other positive
effects it creates for other owners.
Ms. Schnabel stated, if the improvements being made are bringing
things up to code, we will not see a big increase in taxes.
Mr. McFarland stated, if your housing stock.is going to stay with
the times, they will have to update kitchens. and baths or you
will have some deterioration. Enhancing the roof does not
enhance the house.
Mr. Commers asked if the members wanted to authorize the levy.
Mr. Casserly stated he would recommend providing the maximum levy
allowed by statute. In 1994, there could be two levies. In
1994, the HRA could have generated $156,000. In 1996, it could
be slightly more than $150,000. Because=these�.levies are such ��
small percentages, or .0144�; for the first year he would .
��� racommend the maximwn-allowed by statute: � •
MOTION by Mr.- McFarland,� seconded.__ by_ Fis. -:Schnabel, to approve a
Resoiution Adopting-1996 Tax Levies_Collectible�-in 1997:'�- -
Mr_. Meyer stated he would vote no because he feels this is an
inappropriate tax increase for the City's taxpayers.
UPON A VOICS VOTE, AITH MR. COi4lERS� MS. SCHNABEL AND MR.
MCFARLAIdD VOTING AYE, AND 1KR. M8Y8R AND MR. PRAIRIE VOTING NAY,
CBAIRPERS�N C�MMERS DECLARSD TH� MOTIaN CARRIED BY A MAJORITY
VOT$. '
MoTION by Ms. Schnabel, seconded by Mr. McFarland, to approve a
Resolution Authorizing the Funding of the Fridley Revolving Loan
Program; Providing for the Delegation of Certain Powers_and
Duties; Authorizing the Execution of Documents.
UPON A VOICE VOTE, WITH MR. COMMERB, M8. SCHNABEL AND MR.
MCFARLAND VOTING AYE, AND MR. MEYER AND MR. PRAIRIE VOTING NAY,
CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED BY A MAJORITY
VOTE.
10. RESOLUTION AUTHORIZING ADDITIONAL EXPENDITURES FOR THE
MISSISSIPPI STREET/3RD STREET INTERSECTION PROJECT
,� Ms. Dacy stated the City opened bids for the intersection project
and the low bid was $212,616.20_ This is a difference of
12.19
City
Bloomington
Communities with HRA Tax Levies
Amount
$fi43,000
Purpose
General administration and
housing programs.
Brookiyn Center $300,556 General administration and
economic development pro-
jects. City has both HRA
and EDA levy.
Crystal
$100,000 Levy funds are placed into
special account for future
redevelopment projects.
New Hope N/a City charges an E�A levy
for administration purposes.
Finance Director did not
� have estima#e on amount.
Richtield
$151,000
Genera! administration and
redeveiopment prQgrams.
So. St. Paui $55,000 General administration.
12.20