07/13/2009 - 29238CITY COUNCIL MEETING
CITY OF FRIDLEY
JULY 13, 2009
The City Council meeting for the City of Fridley was called to order by Mayor Lund at 7:30 p.m.
ROLL CALL:
MEMBERS PRESENT: Mayor Lund
Councilmember-at-Large Barnette
Councilmember Saefke
Councilmember Varichak
Councilmember Bolkcom
OTHERS PRESENT: William Burns, City Manager
Rick Pribyl, Finance Director
Scott Hickok, Community Development Director
Deb Skogen, City Clerk
Fritz Knaak, City Attorney
Richard Harris, 6200 Riverview Terrace
Joan Olson, 6320 Van Buren Street
Pam Reynolds, 1241 Norton Avenue
Pete Eisenzimmer, 6535 Oakley Drive
A1 Stahlberg, 8055 Riverview Terrace
Steve Ling, 120 Hartman
William Holm, 7424 Melody Drive
Carol Hoiby, 5380 7th Street NE
John Heffken, 7374 Able Street
Sean Warren, 7439 Concerto Curve
Joanne Zmuda, 6051 4th Street NE
Pete Borman, 120 River Edge Way
Pat Gabel, 5947 2'/z Street
PRESENTATION:
Sarah Lackore, Community Outreach Coordinator Big Brothers Big Sisters of the Greater Twin
Cities, presented information about this organization.
APPROVAL OF PROPOSED CONSENT AGENDA:
APPROVAL OF MINUTES:
City Council Meeting of June 22, 2009
APPROVED.
FRIDLEY CITY COUNCIL MEETING OF JULY 13, 2009 PAGE 2
OLD BUSINESS:
1. Second Reading of an Ordinance Amending Chapter 101, Animal Control, of the
Fridley City Code Pertaining to Prohibition of Waterfowl Feeding.
William Burns, City Manager, said this ordinance would prohibit the feeding of waterfowl on
City park property. The ordinance change is based on the perception that the feeding of
waterfowl at Moore Lake Park and other City parks creates problems for the park users and the
waterfowl (principally Canadian geese). The problems include accumulation of droppings in the
picnic and swimming areas as well as in playgrounds and athletic fields. The popcorn, bread and
potato chips they are fed also lead to malnourishment and potentially death of the birds. The
feeding of the birds creates crowding and unsanitary conditions for the birds. It also creates a
dependence on donated food that can delay or halt the migration of these birds to wintering sites.
Dr. Burns said there have also been several instances where people use food to harm the birds.
The ordinance would make it unlawful to provide food, including food bi-products, garbage and
animal food to waterfowl in City Parks. Food bi-products include matter left over from
manufacturing or processing human food. It can be fruit and vegetable waste or meat and dairy
product waste. The prohibition includes placing food or allowing food to be placed on the
ground, shoreline, water body, or any structure unless these items are screened or protected in a
manner that allows waterfowl to feed on them. The first reading of the ordinance was approved
at the June 22 Council meeting. Staff recommends Council's approval of the second and final
reading.
WAIVED THE READING OF THE ORDINANCE AND ADOPTED ORDINANCE NO.
1259 ON SECOND READING AND ORDERED PUBLICATION.
NEW BUSINESS:
2. Special Use Permit Request, SP #09-06, by Altare Signs, Inc., for Speedway Super
America, LLC, to Allow a Free-Standing Automatic Changeable LED Gas Pricing Sign,
Generally Located at 7299 Highway 65 N.E. (Ward 2)
William Burns, City Manager, said petitioner is proposing to replace an existing free-standing
sign with an electronic gas pricing sign. The LED section of the sign is will be 14.4 square feet.
The total square footage of the sign is 80 square feet. The Planning Commission unanimously
approved this request at their June 17 meeting. Staff recommends Council's approval subject to
three stipulations.
APPROVED SPECIAL USE PERMIT REQUEST, SP #09-06, WITH THE FOLLOWING
THREE STIPULATIONS:
1. PETITIONER SHALL OBTAIN SIGN PERMIT AND CURRENT SIGN
ERECTOR LICENSE PIROR TO INSTALLING ANY SIGNAGE ON
SITE.
FRIDLEY CITY COUNCIL MEETING OF JULY 13, 2009 PAGE 3
2. MESSAGE ON L.E.D. SIGN SHALL NOT CHANGE MORE OFTEN
THAN AUTHORIZED UNDER SECTION 214.07 OF THE FRIDLEY
CITY CODE.
3. MESSAGE ON L.E.D. SIGN SHALL NEVER FLASH OR HAVE MOTION
THAT MAY DISTRACT VEHICULAR TRAFFIC IN THE AREA.
3. Approve Extension for Variance Request, VAR #08-05, by Jay Thorson of Daily
Companies, on Behalf of Miller Funeral Home, to Reduce the Side Yard Setback on the
North Side of the Building from 15 Feet to 3.7 Feet to Allow an Expansion of the
Existing Garage; and to Increase the Encroachment of a Canopy into the Required Side
Yard from 3 Feet to 7 Feet, Generally Located at 6210 Highway 65 N.E. (Ward 2)
William Burns, City Manager, said Council granted the two variances on July 18, 2008.
Variance #1 would allow the expansion of an existing garage by extending an existing 3.7'
(instead of the 15' required) setback 60' to the west. The second variance on the south side of
the building will allow a 7' canopy over an existing door. The petitioner is requesting a one-year
extension of these two variances. Staff recommends Council's approval.
THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON
THE REGULAR AGENDA.
4. Resolution Calling for a Public Hearing on Modifications to the Redevelopment Plan
for Redevelopment Project No. 1 and the Tax Increment Financing Plans for Tax
Increment Finance Districts Nos. 1, 6-7, 9, 11-14 and 16-19, Creation of Tax Increment
Financing District No. 20 and Approval and Adoption of Tax Increment Financing Plan
Relating Thereto.
William Burns, City Manager, said the new TIF District would be located on the 12 acre
Columbia Arena site. Staff recommends Council's approval.
THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON
THE REGULAR AGENDA.
5. Approve Memorandum of Understanding for the Edward Byrne Memorial Justice
Assistance Grant (JAG).
William Burns, City Manager, said Fridley and three other Anoka County cities have been
awarded additional JAG money. Fridley's share of the money is $19,132. The Police
Department plans to use the grant money for the following items:
1. Six .233 caliber rifles;
2. Two Ballistic Shields;
3. Six mobile ammunition caches;
4. Sales Tax (6.5%); and ,
5. 10 % administrative expense to the City of Coon Rapids (Administrator of the grant.)
Staff recommends approval of the Memorandum of Understanding.
FRIDLEY CITY COUNCIL MEETING OF JULY 13, 2009 PAGE 4
THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON
THE REGULAR AGENDA.
6. Approve Change Order No. 2 for 85t'' Avenue Trail Project No. ST2007-4.
William Burns, City Manager, said the cost of the change order is $22,293.54. Of this amount,
$21,945 is needed to build a split rail fence with cedar posts and three rails a distance of 2,100
feet along the Springbrook Nature Center (SNC) frontage. The fence will be located on the
south side of the trail between sections of boardwalk, and will discourage bikers and pedestrians
from entering the SNC through the woods. The change order brings the revised project cost with
Colt Construction Services to $800,057.44. Staff recommends Council's approval.
APPROVED.
7. Claims (142272 — 142542).
APPROVED.
8. Licenses.
APPROVED THE LICENSES AS SUBMITTED AND AS ON FILE.
9. Estimates.
APPROVED THE FOLLOWING ESTIMATES:
Colt Construction Services, LLC
285 Forest Grove Drive, Suite 126
Pewaukee, WI 53072
85th Avenue Trail Project No. ST. 2007-4
Estimate No. 5 .............................................................................. $ 86,124.52
Ellingson Drainage, Co.
P.O. Box 68
West Concord, MN 55985
2009 Watermain Rehabilitation Project No. 386
Estimate No. 1 .............................................................................. $122,575.87
Veit & Company, Inc.
14000 Veit Place
Rogers, MN 55374
2009 Sanitary Sewer Lining Project No 383
Estimate No. 1 .............................................................................. $156,334.00
FRIDLEY CITY COUNCIL MEETING OF JULY 13, 2009 PAGE 5
APPROVAL OF PROPOSED CONSENT AGENDA:
Councilmember Bolkcom asked for Item Nos. 3 and 4 to be removed from the consent agenda.
Richard Harris, 6200 Riverview Terrace, asked for Item No. 5 to be removed.
MOTION by Councilmember Barnette to approve the Consent Agenda with the removal of Item
Nos. 3, 4 and 5. Seconded by Councilmember Varichak.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
ADOPTION OF AGENDA:
MOTION by Councilmember Bolkcom to Adopt the Agenda with the addition of Item Nos. 3, 4
and 5. Seconded by Councilmember Saefke.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
OPEN FORUM (VISITORS):
Pete Borman, 120 River Edge Way, thanked everyone for the work that was put forth for
Fridley `49er Days. It was a successful event and he thanked the city for all their support.
Mayor Lund thanked Mr. Borman for his volunteer efforts in the event. He also thanked School
District 14 and the Parks and Recreation Department. Everyone on the committee and the
numerous volunteers did a great job.
Richard Harris, 6200 Riverview Terrace, said he has a problem about what to do with people
who bring unlicensed vehicles onto his property. According to a letter he received, the City can
tag and tow the vehicles. There is a City impound lot and he asked if the City towed and
impounded vehicles.
Mayor Lund said the impound lot is for police issues. The letter he received is to make him
aware of what is going on.
Mr. Harris said that it would be easier if the City would tag and tow the vehicles. He
questioned if there was a policy change.
Mayor Lund asked if he had spoken with the Community Development Director regarding this
issue.
Mr. Harris asked if there was a policy change.
FRIDLEY CITY COUNCIL MEETING OF JULY 13, 2009 PAGE 6
Mayor Lund said he was not aware of any change. He said the City does not make it a habit to
tow vehicles on private property. A property owner can tow a vehicle that does not belong on
their property, but the property owner or vehicle owner would be responsible for the towing fee.
He suggested Mr. Harris contact Scott Hickok to discuss this matter.
Councilmember Bolkcom said there will be a discussion of the traffic signal by Stevenson
Elementary School on July 30 from 5:00 p.m. to 7:30 p.m. Anoka County Commissioner
Kordiak will be in attendance with County engineers to discuss the impact on the neighborhood.
The County will be sending a letter out to residents within one-half mile radius of the traffic
signal.
NEW BUSINESS:
1. Approve Memorandum of Understanding for the Edward Byrne Memorial Justice
Assistance Grant (JAG).
Richard Harris, 6200 Riverview Terrace, asked if the firearms purchased would be automatic
or semiautomatic weapons.
William Burns, City Manager, said he would let Mr. Harris know what kind of firearms were
being purchased.
MOTION by Councilmember Bolkcom to approve the Memorandum of Understanding for the
Edward Byrne Memorial Justice Assistance Grant (JAG). Seconded by Councilmember Saefke.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY
PUBLIC HEARING:
10. Consideration of an Amendment to Chapter 7 of the Fridley City Charter.
MOTION by Councilmember Bolkcom to waive the reading of the public hearing notice and
open the public hearing. Seconded by Councilmember Saefke.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING OPENED AT
8:05 P.M.
Rick Pribyl, Finance Director, said this proposed Charter amendment has two elements of
change in Section 7.02. First, it would allow the City to bring a question to the voters on a
timelier basis for issues that require voter input to property taxes and fees that are restricted by
the Charter and allow language for a special election. Second, it would change the 51% of the
votes cast to a majority of those votes cast on said question.
FRIDLEY CITY COUNCIL MEETING OF JULY 13, 2009 PAGE 7
Mr. Pribyl said when developing the 2010 draft budget, a number of difficult obstacles were
encountered. The State of Minnesota unallotted 20081oca1 government aid, and will be reducing
local government aid in 2009 and 2010 to solve the budget problems and shifting some burdens
to local property tax payers. Due to the economy, staff has also seen revenue reductions in
interest earnings, licenses and permits, and liquor store sales.
Mr. Pribyl said for 2010 an additional $700,000 was cut from the General Fund Budget.
Revenue adjustments for 2010 were also made where possible. Due to the continued General
Fund reliance on transfers from the "rainy day" fund, this fund is projected to be out of money
soon. By this time next year, the City will be facing the choice of either cutting services or
attempting to raise revenue. In order to enable the City to get the issue to the voters in a timely
manner, City staff approached the Charter Commission on June 10 with a request to initiate a
change to Chapter 7 of the Fridley City Charter that would enable the City to bring a revenue
issue to the voters in a special election.
Mr. Pribyl said the proposed amendment also asks that the 51% majority requirement for
approval be changed to a majority of those voting on the issue. This is the public hearing for the
proposed Charter change. It is not intended to be a discussion related to potential revenue
increases or changes to the 2010 Budget. The first reading of the ordinance to amend the
Charter will follow the public hearing.
Councilmember Bolkcom asked if staff received a report from the City's auditors, and if any
comment related to fund balance was received that would be prudent to the discussion tonight.
Mr. Pribyl said comments were received regarding the long-term reduction on fund balance and
the elimination of other reserves that were approved.
Councilmember Bolkcom commented this is not only a concern of Council and staff but also a
concern of an independent accounting firm.
Joan Olson, 6320 Van Buren Street, said that she was in favor of changing this as long as it does
not open up franchise fees. The City has no control over franchise fees and if people have to pay
extra she would rather do that through property taxes than franchise fees. Cutting services would
be detrimental to citizens because sewer, water, police and fire are necessities.
Mayor Lund said staff has been doing some number crunching on losses and the City has to
stop losses soon or it will run out of money. Even with the substantial cuts and the local
government aid, preliminary numbers show that the City needs to raise revenues by about $1
million, which would mean for the average value home in Fridley, taxes would increase about
$82 a year. Fridley is an aging community and there is record unemployment, so it is hard to ask
for the money.
Mayor Lund said in comparison, if there were franchise fees, it would equate to about $36 a
year per household. People wonder how there can be such a difference between raising taxes or
having a franchise fee. With the franchise fee, everyone shares the burden including tax exempt
properties like schools, apartments and hospitals. The non-profits would get hit heavier than the
FRIDLEY CITY COUNCIL MEETING OF JULY 13, 2009 PAGE 8
homeowner. With those things in mind, the administrative cost is a lost less and the collection is
done through the utility bill. If the franchise fee did come about, it would be a flat fixed rate.
William Burns, City Manager, said that quite a few other cities have adopted a franchise fee.
The utility companies favor a flat rate meter charge. Under this preferred route, a flat rate is
used, not a percentage. The reason Fridley is better served is because of the huge industrial
commercial tax base.
Richard Harris, 6200 Riverview Terrace, asked about commercial industrial industries and
what the franchise fee would mean to those businesses.
Dr. Burns said that nothing has been designed yet but there would be a separate franchise fee
attributed to different types of users. The larger users would pay a higher fee. Tonight's public
hearing is not to discuss franchise fees.
Mr. Harris said that Mayor Lund raised a point and he wanted to know what it would cost and
who would be responsible for the maintenance of the meters.
Dr. Burns said that the utility company would be responsible for the meters.
Mr. Harris said that he watched a program on Channel 17 saying if this does not pass, services
would have to be cut.
Dr. Burns said the conversation about cutting services is premature at this time. Any services
that would be cut would be significant because the City is already at the bare minimum. All
services are important and the City needs to do all it can to preserve what is offered right now.
Mayor Lund said that the remaining employees have had to take cuts too. There will be no
salary increases or insurance increases given to staf£ If additional revenues are not found, all
aspects of budget cuts will need to be looked at. It is premature right now to say things may be
cut in one way or another but residents will notice cuts in services if it were to happen.
Pam Reynolds, 1241 Norton Avenue, said she is in opposition to changing the language in the
Charter. At the June Charter Commission meeting, she cast one of the two opposing votes for
this change. The Charter Commission bylaws say that the purpose of the Charter Commission is
to frame and amend the Charter to meet the needs of the people. The language currently in the
Charter not only meets the needs of the people but also represents the will of the people as
established in the 2000 election. She believed the desire to change the Charter language was
designed to circumvent voters by using a process that would normally reduce the number of
voters who go to the poll. It is well known that special elections typically draw a lower number
of voters as was the case in the election held in 2007.
Ms. Reynolds said she did not think this public hearing was even necessary. She saw the cable
television program of the discussion regarding the proposed Charter Amendment. It sounded
like Council was planning to approve the amendment before the public hearing even happened.
During the cable show when Deb Skogen was asked by Bill Burns what the language changes
FRIDLEY CITY COUNCIL MEETING OF JULY 13, 2009 PAGE 9
were, she responded that they were minor. These changes in the literal sense may be minor but
the words have major consequence to the citizens of Fridley.
Ms. Reynolds said in today's economy many people would like to know their jobs are secure
through 2011. She understands staff's desire to increase the City's revenue flow, but with 75%
of the City's budget tied up into personnel costs covering nonessential services, cutting non-
essential services requires cutting wages. With unemployment in Fridley at 9.3% no one is
guaranteed employment. The City may have to make hard choices like any other employer in
the United States.
Ms. Reynolds said currently, over $3 million is tied up in tax increment financing further putting
burden on taxpayers. She asked Council to vote no on this Charter change and make the
necessary budget cuts and put the increased levy issue on the next general election ballot.
Mayor Lund said the Charter Commission was asked in February after the end of year local
government aid unallotment, and the Charter Commission said they wanted to wait and see what
the legislation would do. A special election is needed in December and the timeline is such that
the City is restricted.
Ms. Reynolds said that the Charter Commission was scheduled to meet on July 27 after it was
known what the unallotments would be. When this first came to the Charter Commission, staff
recommended that the Charter Commission agree to take the language back to pre-2000.
Mayor Lund said that the Charter Commission did not have consensus and were suppose to
work on it.
Ms. Reynolds said they were working on a compromise and looked at the Mounds View
language. The Charter Commission agreed to look at the language and agreed on May 18 to
adopt the language from the Mounds View Charter to allow an additional2% up to 5%. She said
a special election would not serve any purpose. The vote must be held during a general election
and it needs to stay that way.
Pete Eisenzimmer, 6535 Oakley Drive, said he read in the Focus that the City wants to amend
the Charter. The City tries to take the Charter apart every year and each time it is not able to be
on the ballot unless there is a petition, so it should not be on the ballot without a petition.
Mayor Lund said he would go along with the change if the Charter would allow a special
election and ask for some type of tax increase.
Mr. Eisenzimmer said the Charter should not have to force themselves to collect signatures to
get on the ballot.
Mayor Lund said the only way it will get on the ballot is for a change in the wording on the
Charter by petition.
FRIDLEY CITY COUNCIL MEETING OF JULY 13, 2009 PAGE 10
Mr. Eisenzimmer said he did not agree to change the ordinance. He does not think the City
should be able to make a special election whenever they need money. Residents have to live on
their income and the City should have to make it work and quit spending money. He asked for
Council to think about it before they put it through.
A1 Stahlberg, 8055 Riverview Terrace, said that in February of this year, there was an article in
the Minneapolis Star and Tribune about how low the taxes are in Fridley. The article listed the
top 10 and bottom 10 taxed cities and Fridley was not on the list.
Councilmember Barnette asked if there were any cities on the list from Anoka County.
Mr. Stahlberg said Ham Lake. He said that Fridley has expenses that may not be necessary,
like the fact that eight City parks have irrigation systems. He wondered why the parks were
sprinkled because then the grass needs to be cut twice a week instead of once a week. He also
noted that Chemlawn is hired to spray the park.
Councilmember Bolkcom said if Mr. Stalhberg has ideas to cut the budget, he should bring
them to the budget meeting. Tonight's item is about the Charter.
Mr. Stahlberg said he did not want a special election in December. He was concerned about the
weather and how people would get out to vote.
Mayor Lund said people could fill out an absentee ballot.
Mr. Stahlberg said the City would have to pay a fee for a special election and the election
should be in November with the general election.
Mayor Lund said if the city waited until November, this issue would fall into the 2011 budget.
If the voters voted no, the City would really be in a crisis mode.
Mr. Stahlberg said the City is not even close to running as cheap as it could.
Councilmember Bolkcom asked Mr. Stahlberg to show her $1 million in cuts that could be
done and come to the next budget session. Not using Chemlawn, and decreasing the mowing
and sprinkling does not even put a dent into the crisis.
Mr. Stahlberg said it would be a start.
William Holm, 7424 Melody Drive, said he is a member of the Charter Commission and is the
longest standing member. A special meeting was held in June to discuss a proposal brought to
the Charter Commission by City staf£ The majority of the Charter Commission felt this did
indeed meet the needs of the people and voted 8 to 2 in favor of it. His reason for voting in favor
is because it enabled the City to bring forth the issue of cuts before the cuts have to be made.
Mr. Holm said citizens have a chance to vote on whether or not they want to go ahead with these
cuts or look at other revenues to avoid those cuts. It is not uncommon for City staff to make
FRIDLEY CITY COUNCIL MEETING OF JULY 13, 2009 PAGE 11
suggestions on Charter changes. The Charter Commission has agreed with some changes and
not with others. It is also true that individual members of the Charter Commission can suggest
changes to the Charter and if there is consensus it can be brought to Council. Charter
Commission meetings are not closed; if anyone wants to come they can do so and bring up
suggestions to be considered. This is an open process to all citizens of Fridley.
Mayor Lund said the Charter Commission was working on some issues to help the City and was
looking at the Mounds View Charter restriction and adding the 2%. He asked why the Charter
Commission went with this recommendation rather than the one they were working on.
Mr. Holm said he missed that meeting. The Charter Commission was going to consider the item
in July. Mr. Pribyl brought forth the proposal and noted the importance of rapidly bringing this
to the voters.
Councilmember Bolkcom said all during last year with the budget cuts and unallottments, staff
and Council wanted to bring the concerns to the community. This is why she brought up the
audit, because it is not just a city staff issue; numerous discussions have been held with the
Mayor and City Council regarding this issue.
Carol Hoiby, 5380 7th Street NE, Charter Commission member, said she was absent at the June
meeting but if she were present, the vote would have been 9 to 2 because she is in favor of it.
John Heffken, 7374 Able Street, said he was opposed to a special election because it cost money
and the City doesn't have money. Quite a while ago the City found $3.0 million to start a rail
station. The Council is elected to take care of business for residents and if they found money for
the rail station, there must be other monies set aside.
Mayor Lund said that the $3 million came out of HRA Funds.
Dr. Burns said a large part of the funds for the rail station were from CTIB monies that had
nothing to do with the General Funds.
Councilmember Bolkcom added the monies came from sales tax and could not be spent in any
other way for the rail station.
Mr. Heffken said the City does not need to spend any more money and needs to find a way to do
it for less.
Joanne Zmuda, 6051 4th Street NE, said the City wants to change the Charter language again
because they feel the language is too restrictive to raise city revenues. The City has many ways
to cut the budget like many of us have had to do.
Ms. Zmuda said in her opinion, it is unfair and unethical to have a special election on such an
important issue. We need a break from taxes, not more taxes. Regarding public safety cuts,
scare tactics do not work anymore. If this goes through, there will be a petition going around.
FRIDLEY CITY COUNCIL MEETING OF JULY 13, 2009 PAGE 12
Mayor Lund said it is unfortunate she feels that way. He said he is a tax payer and resident.
Pete Borman, 120 River Edge Way, said he is a member of the Charter Commission and was
Chair in February when this started. The change being proposed is to go to the voters and ask for
an increase above the rate of inflation or 5%, and the City has the ability to ask that question.
The Charter Commission had three proposals they were looking at and it was a wait and see
situation with the Charter Commission because it was unknown what the state was going to do.
If a special election is granted or not, if people are concerned and care, they will come vote when
the question is posed. Council is just going through the process to go to the voters and ask them
for an increase in taxes. He said he supports this item.
Sean Warren, 7439 Concerto Curve, said he does not agree with Mr. Borman. Water rates
came around a while back and he also suggested a 20 cent increase instead of 10 cents. There
needs to be a certain amount of money available to run the City and the City needs to have fiscal
responsibility. Funding revenue sources are needed to make it work The LGA has been cut
many times and the City should not count on a nickel from LGA. The City needs to look out 3 to
5 years. He asked if $1.2 million would be enough.
Mr. Warren said he has seen special elections abused, and if the City doesn't get what they
want, they will run another special election. People are tired of special elections because it is a
major hassle. If taxes continue to rise, soon people will start to move.
Dr. Burns said the funds needed depend on what happens at the state legislature. The rainy day
funds that have been used have been anywhere from $900,000 to $2.0 million. The $1.2 million
amount is an average being used that may get the City back to balancing the budget. Staff does
not want to ask for too much because they do not want to burden people.
Mr. Warren asked how the numbers work.
Dr. Burns said that there would need to be 51% of people that voted on the issue.
Mr. Warren said that he was against a special election because it could lead to abuse down the
road.
Mayor Lund said at least the City is going to the voters and the voters have the right to say no.
Mr. Warren said the voter turnout has not been that great.
Mayor Lund said there is a problem with waiting until November 2010.
Mr. Warren said the information that was printed on the water issue was not easy to read or
understand. He asked why the information was printed and distributed to the people.
Dr. Burns said the information was not something staff generated. It is required to be published.
Mr. Warren agreed with others that there are areas of the City that could be cut.
FRIDLEY CITY COUNCIL MEETING OF JULY 13, 2009 PAGE 13
Councilmember Bolkcom said for those who do not come to the election, shame on them for
not being involved. People are given the opportunity to be educated and become involved. Staff
thought they would give people the opportunity and let them what they were talking about. Dr.
Burns spent time on the newsletter to let people know what is going on. It is the people's taxes
and money that is being spent. People should come to an election and vote whenever an
election is held.
Dr. Burns said in the general election, you get voter falloff because people are voting for the
President or Governor. People vote on issues at the top but do not always fill out the voting
items at the bottom. In a general election, there usually is not a lot of participation on the local
issues which has a bearing on the 51%.
Dr. Burns said regarding the use of tax increment financing this is an economic development or
redevelopment tool that enables Fridley to attract offices and valuable projects that would not
ordinarily build here. The increment is the increase of change in the base and the value of the
taxes after the project is complete. A portion of the increment is an incentive for developers to
bring projects to Fridley. TIF was used based in incremental increases to help Medtronic with
their parking ramp and now they are one of the largest employers in Fridley.
Councilmember Bolkcom said there was recently a public hearing held for a TIF request for the
Columbia Arena and not one person came to that public hearing that was against the project.
Dr. Burns said that just because TIF is granted, there is no guarantee Fridley will get the project.
Staff is continually working very hard to get new businesses in Fridley that are attractive.
Mr. Pribyl said there are now some TIF districts that are coming on line that are full market
value.
Councilmember Bolkcom said another example of what allows Fridley to do development is
the commuter rail area. This would not be in the community and will happen because of TIF.
Steve Ling, 120 Hartman, said he had concerns with the Charter amendment because it is
changing it to special election and 51%. Statistics show that a special election does not have
good voter turnout. Issues should be presented to public where most people will show up and
avoid the cost of a special election. Council was addressed several years ago about the budget
and the fact that the rainy day funds kept on being spent. He asked how many general elections
have passed when something could have been done before the crisis. Now the City is in an
emergency situation and asking for a special election. Special elections do not work in
emergency situations. This should go to the general public as part of a general election.
Mayor Lund said in 2000, the City did not know in three years there would be a deficit and
unallottment that would cost the City to lose millions of dollars. Then after the funds had
already been spent, the Governor makes another unallotment. There will be tougher times to
come and there is no crystal ball to let the City what is going to happen. The City has tried to
FRIDLEY CITY COUNCIL MEETING OF JULY 13, 2009 PAGE 14
raise additional funds through liquor sales but that has even taken a downturn from $500,000 to
$350,000.
Mr. Ling said the City government budget is similar to a household budget. The City has been
spending down the rainy day fund since 1999. If someone has a savings account with a limited
amount of funds and dips into it, sooner or later the money will be gone. Now the City must
increase revenues or cut expenses. Things happen, the current Charter works if they ask people
for additional revenues. He is opposed to a special election because of the voter turnout.
Councilmember Bolkcom reminded people that in 2001 and 2002 the City was criticized
because there was too much money in reserves and the last few years, the City has had huge
local government aid cuts. If there was a crystal ball, the city should have been raising the rates
all the time but they wanted to be a community that could offer all these services for the least
amount of money. Water and sewer had to be addressed first and now this issue needs to be
addressed.
Councilmember Bolkcom encouraged people to talk to neighbors to come and vote. This
cannot wait another year because the City will continue to lose money.
Mr. Ling advised to be cautious in amending the local Charter and how often it is amended.
Dr. Burns said Fridley is one of few Charter cities--one of three--that has these kinds of
restrictions. Fridley has the lowest taxes and water rates in the area. Staff feels there is some
justification in getting rid of the restrictions altogether. Let your elected representatives bring
forth the good choices they were elected for.
Mr. Ling said that he did not live in the City when the Charter was adopted but with the current
spending and expenses, he would expect Council to do what is appropriate to run the City.
Councilmember Bolkcom said the Charter was not approved by the entire public, it was written
by a small group of people who do not speak for everyone.
Pat Gabel, 5947 2'/z Street, said Council was elected to do a j ob for the City and now there are
5% of the people preventing that from happening. She asked what needs to be done to get rid of
the 5% of the people that caused this to happen. She asked if she could run around with a
petition.
Mayor Lund said that Ms. Gabel could inform people fairly and encourage them to vote.
Ms. Gabel said she is tired of hearing from 5% of the people and does not want them
representing her. Now the City is in financial trouble and people do not see it.
Mr. Eisenzimmer said the Charter passed in 1999/2000 and the City Council and City Manager
knew what the Charter was. At that time there should have been money put away for what was
coming yet many projects were started that cost a lot of money. These are the projects that have
to be cut back on and not finished. The citizens of Fridley cannot afford to have taxes raised any
FRIDLEY CITY COUNCIL MEETING OF JULY 13, 2009 PAGE 15
more. The Charter states what the City has to do to get money, yet there are people who run the
City that believe the Charter should be changed. The Charter change would have never been
created if it had not been for the franchise fee.
Deb Skogen, City Clerk, said the Fridley City Charter was adopted in 1957. Restrictions were
put into place and the initiative referendum by a petition group and went to municipal restriction.
City Council had the ability if the City was in a crisis to request a public hearing and adopt a
resolution to raise taxes. Council can only go for an annual election on even years so a question
cannot be on the ballot this year.
Councilmember Saefke said Council has been accused of not following the Charter and he
asked Ms. Skogen if Council was following the procedure in the Charter.
Ms. Skogen said this is the correct procedure in the Charter. Notice was published in the paper,
the City offered education and the public hearing is being held and it is up to Council to adopt
the ordinance.
Councilmember Saefke said he wanted to make sure the listening audience was aware what the
process is and that Council is following what is written in the Charter.
Councilmember Bolkcom said the 2000 Charter amendment had nothing to do with this crisis.
The City could have been increasing taxes and not spending down fund balances and raising
taxes all along. She asked if it was fair to say that because of the Charter amendment the City
has already cut budgets and the City has also had to live with the cost of living increases and
spending down fund balances.
Dr. Burns said the City was put in a position to use rainy day funds. Rather than accept existing
Charter increases the City felt a change was needed to be made to the Charter and the City made
an effort to turn it around.
Councilmember Bolkcom said the City had to play catch up on water and sewer because of
water restrictions.
A1 Stahlberg said an area where funds could be cut is where the City spent $175,000 on a
sidewalk to nowhere because Coon Rapids did not put in the other part of the sidewalk.
Mayor Lund said there have been a lot of comments about what the City is spending and there
are funds that cannot be used for the General Fund to keep the City afloat. If these funds were
not spent in a certain way, the City would lose the funds and the 20% match that came from state
aid money. The money for that sidewalk did not come from the General Fund, so that would not
help the City in financing the General Fund. People need to see the bigger picture before they
criticize the Council. The City does not want to have to ask for an increase but there is no easy
clear solution. The Governor has even told city Mayors in the past to spend down reserves
because it restricted cities from asking for a tax increase.
FRIDLEY CITY COUNCIL MEETING OF JULY 13, 2009 PAGE 16
Mayor Lund said Council is willing to listen to people's comments on how to save money but
this is not appropriate as the money mentioned cannot be used for General Funds. Even if the
City cut back on watering the City parks, that money savings would not help with the General
Fund. Those funds come out of the Enterprise Funds in the water and sewer department. People
need to understand the entire picture.
Mr. Stahlberg said the threat is the City may lose current staf£ That may not be a bad idea.
New blood means new ideas which may be good for the City.
Mayor Lund reminded people that if staff is cut, it would be difficult to take care of code
enforcements.
Councilmember Bolkcom added some Park and Recreation programs are self-supporting like
baseball and softball. Council is elected to take care of the budget and there are many
components to the budget. People need to trust that Council wants to give citizens the best
services they can for the least amount of money.
Mr. Stahlberg said the trust is gone now.
Mr. Harris said according to the U. S. Constitution, people have the right to regress their
grievances. Right now he is exercising that right. People have looked down on TIF and it is a
good development tool but from time to time TIF was not used well. TIF is better used these
days but in the past, business owners built on their own, they did not need help and wanted to
come to this town. This used to be a thriving growing community and the City used to operate in
an efficient way.
Councilmember Barnette said things have changed tremendously. Fridley has gone through
the same changes as other communities have. We are all taxpayers and are doing the best job we
can.
Councilmember Bolkcom said the climate is much different now than it was then. Who would
have predicted our country would be in the shape it is right now?
MOTION by Councilmember Barnette to close the public hearing. Seconded by Councilmember
Varichak.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING CLOSED AT
10:25 P.M.
NEW BUSINESS:
11. First Reading of an Ordinance Amending Section 7.02 of the Fridley City Charter.
MOTION by Councilmember Bolkcom waive the reading of the ordinance and adopt the
ordinance on first reading. Seconded by Councilmember Saefke.
FRIDLEY CITY COUNCIL MEETING OF JULY 13, 2009 PAGE 17
Councilmember Bolkcom said a lot of information was discussed and she understands it makes
sense to try and do this in a general election, but she hopes people have the opportunity to know
what is going on. The City is trying to be prudent with people's taxes and everyone is on a fixed
income. Something needs to be done now and she hopes people understand the questions and
issues.
Mayor Lund said it is difficult to ask for increases in taxation given the climate of the economy,
but he does not want to go the other route with further cuts. He firmly believes that making
further cuts will noticeably make changes in our community. There is a cost in keeping up the
community. The Charter Commission approved this item on an 8 to 2 vote. Hopefully people
are willing to pay a few more dollars, but if the majority of people say no, the City will end up
with significant cutbacks to the community.
UPON VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION
CARRIED UNANIMOUSLY.
3. Approve Extension for Variance Request, VAR #08-05, by Jay Thorson of Daily
Companies, on Behalf of Miller Funeral Home, to Reduce the Side Yard Setback on
the North Side of the Building from 15 Feet to 3.7 Feet to Allow an Expansion of the
Existing Garage; and to Increase the Encroachment of a Canopy into the Required
Side Yard from 3 Feet to 7 Feet, Generally Located at 6210 Highway 65 N.E. (Ward 2).
Councilmember Bolkcom asked how many extensions could be granted for a variance and why
an extension would be granted. She asked what would happen if petitioner came back next year
asking for another extension.
William Burns, City Manager, said they are looked at on a case-by-case basis. This is the first
variance request in this case.
Councilmember Bolkcom said at some point Council should look at how many extensions are
going to be granted.
MOTION by Councilmember Bolkcom to approve an extension for Variance Request, VAR
#08-05. Seconded by Councilmember Saefke.
UPON VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION
CARRIED UNANIMOUSLY.
4. Resolution Calling for a Public Hearing on Modifications to the Redevelopment Plan
for Redevelopment Project No. 1 and the Tax Increment Financing Plans for Tax
Increment Finance Districts Nos. 1, 6-7, 9, 11-14 and 16-19, Creation of Tax
Increment Financing District No. 20 and Approval and Adoption of Tax Increment
Financing Plan Relating Thereto.
Councilmember Bolkcom asked why this was not going before Council until September.
FRIDLEY CITY COUNCIL MEETING OF JULY 13, 2009 PAGE 18
Scott Hickok, Community Development Director, said that there is a statutory process in
creating a district and holding a public hearing. There is a timeline and September 28 is the first
date this can be on the agenda. The senior building will start construction this year and the clinic
is not sure if it will start construction in the fall or spring.
MOTION by Councilmember Bolkcom to adopt Resolution No. 2009-25. Seconded by
Councilmember Saefke.
UPON VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION
CARRIED UNANIMOUSLY.
12. Informal Status Report
Scott Hickok, Community Development Director, said there was another successful paper
shredding event last week resulting in 2,700 pounds of paper shredded.
Councilmember Bolkcom announced the "Night to Unite" event will be held on Tuesday,
August 4. The new logo takes place of the old "National Night Out" logo.
Mayor Lund said the Fridley Historical Society is looking for nominations for the Hall of Fame
Event. Nomination forms can be found at City Hall, libraries and the History Center.
Nominations are being accepted now and people can nominate themselves or someone deserving
of this award. Nominations can be dropped off at City Hall by July 31.
Councilmember Bolkcom said they received a memorandum from the League of Minnesota
Cities indicating that Senator Betzold will be recognized for his leadership to communities in
Minnesota. He will be one of 27 recognized by the League of Minnesota Cities. Senator
Betzold has been very receptive to issues in our community.
Councilmember Barnette said that a grand opening ceremony will be held for the North Star
Commuter Rail Station at the Fridley station on 61st Avenue and East River Road in November.
They are expecting 700 to 1,000 participants at each of the stations. There is a link on Fridley's
website for more information and photographs.
ADJOURN:
MOTION by Councilmember Barnette to adjourn. Seconded by Councilmember Varichak.
UPON VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION
CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 10:45 P.M.
Respectfully Submitted,
Krista Monsrud Scott J. Lund
Recording Secretary Mayor