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RES 2007-15 - 00014302RESOLUTION NO. 2007 — 15 A RESOLUTION OF THE CITY OF FRIDLEY, MINNESOTA, DIRECTING ITS ATTORNEY TO OBTAIN A LEGAL OPINION FROM THE MINNESOTA ATTORNEY GENERAL PURSUANT TO MINNESOTA STATUTES, CHAPTER 8.07 WHEREAS, the City of Fridley, Minnesota, is a Charter City organized under the laws of the State of Minnesota; and WHEREAS, as part of its duties and obligations under Minnesota law, it operates utilities for sewer and storm water collection, as well as the distribution of water to the residents and businesses in the City; and WHEREAS, the City is authorized by law to collect a fee for the purpose of meeting the cost of providing the aforesaid utility services; and WHEREAS, many of the key costs for providing those services to its residents are outside of the management and control of the City, but are, rather, costs and fees imposed by outside governmental agencies; and WHEREAS, the actual cost to the City of providing the aforesaid services has been well in excess of five percent (5 %); and WHEREAS, in 2001, the citizens of the City of Fridley amended their Charter to include a restriction limiting any increase in fees imposed by the City, including for the foregoing utility services, to the lesser of the rate of inflation or five percent (5 %); and WHEREAS, as the result of the Charter restriction, the utility funds of the City of Fridley, which are based on fee collections for those services, have been running at deficits which will be in excess of $600,000 for the year 2007 and are projected to be in excess of $800,000 annually by the year 2011; and WHEREAS, the current deficits have created a very significant hardship for the City of Fridley in the form of significant use of utility fund cash reserves; and WHEREAS, a serious legal issue has been raised by the City's former outside bond counsel and financial advisors as to whether the imposition of such restrictions by the City in its Charter represents a direct conflict with the provision of Minnesota law as it applies to the obligations of cities to provide such services; and WHEREAS, the City has determined that it is essential that, prior to taking any other action, it obtains a binding legal opinion as to whether the restrictive provisions of its Charter are beyond the scope of authority authorized under Minnesota law; and Resolution No. 2007 - 15 Page 2 WHEREAS, Minnesota law, under Minnesota Statutes Section 8.07, provides a procedure for obtaining a legal opinion from the Minnesota Attorney General on important legal matters for Minnesota cities. NOW, THEREFORE, BE IT RESOLVED, that the City Manager is hereby directed to seek and obtain, through legal counsel or any other appropriate means, a legal opinion from the Minnesota Attorney General to determine whether the current restrictions contained in the City Charter are authorized by law, and, if not, the extent to which any such restrictions may properly be imposed in the Charter. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 26TH DAY OF FEBRUARY, 2007. SCOrrT f LUND — MAYOR ATTEST: "dAj��? DEBRA A. SKOGEN, CI& CLERK