08/24/2009 - 29265CITY COUNCIL MEETING
CITY OF FRIDLEY
AUGUST 24, 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
Fritz Knaak, City Attorney
Scott Hickok, Community Development Director
Jim Kosluchar, Public Works Director
Don Abbott, Chief of Police
PRESENTATION:
Kyle Knutson, GI Code Enforcement, presented his findings on code enforcement over his
summer internship with the City of Fridley.
APPROVAL OF PROPOSED CONSENT AGENDA:
APPROVAL OF MINUTES:
City Council Meeting of August 10, 2009.
APPROVED.
NEW BUSINESS:
1. Resolution to Vacate a Portion of 61st Way Right-of-Way Only to Allow for the
Construction of the Northstar Park and Ride Lot, Generally Located at 6151 West
River Road N.E. (Ward 3).
William Burns, City Manager, stated residents who live on 61 '/z Way have been involved in the
planning of the station site and appear to be in agreement with the rerouting of traffic. On July
15, the Planning Commission held a public hearing on the proposed street vacation and
unanimously recommended approval, subject to two stipulations. Staff recommends Council's
approval.
THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON
THE REGULAR AGENDA.
FRIDLEY CITY COUNCIL MEETING OF AUGUST 24, 2009 PAGE 2
2. Motion to Allow the Removal of Four Trees to Accommodate the Placement of an
Electronic Message Center Sign in an S-2 District, District, Generally Located at 6341
University Avenue N.E. (Ward 1).
William Burns, City Manager, said four trees are located near the intersection of Fourmies
Avenue and the University Avenue Service Drive. Originally, Fairview Health Services
approached the City asking to install a Fairview sign on land designated for public parking.
Since a purely private sign could not legally be installed on public property, Fairview ultimately
offered to construct a 120 square foot sign with their name and logo on bottom 38 square feet.
The remaining 82 square feet would be used for City purposes and will include an electronic
reader board for displaying community messages.
Dr. Burns said under the terms of the pending lease agreement, the sign will be the property of
the City and access to it will be under exclusive City control. Both the Parks and Recreation
Commission and the Planning Commission have approved the removal and replacement of the
four trees as required by City ordinances. Staff recommends Council's approval.
APPROVED.
3. Motion to Approve the Articles of Incorporation and Bylaws of Minnesota Metro North
Tourism and Appoint Debra Skogen, City Clerk, to Serve as the Representative from
the City of Fridley.
William Burns, City Manager, stated on April 18, 2009, Council adopted a resolution allowing
the City to opt out from its agreement with Visit Minneapolis North, a local convention and
visitors bureau. Other cities opting out included Arden Hills, Anoka, Blaine, Coon Rapids, Ham
Lake, Mounds View, and Shoreview. These cities have been meeting since April to draft new
bylaws. Coon Rapids has taken the lead in orchestrating this group.
Dr. Burns said the new Convention and Visitors Bureau will be funded by the proceeds of the
3% lodging tax collected in the participating communities. Based upon its contribution, Fridley
will be allowed one Board member. Assuming approval of the bylaws and the appointments to
the Board, it will be functioning prior to the end of 2009. Staff recommends Council's approval.
APPROVED.
4. Claims (142899 — 143080)
APPROVED.
5. Estimates
Colt Construction Services, LLC
285 Forest Grove Drive, Suite 126
Pewaukee, WI 53072
85th Avenue Trail Project No. ST. 2007-04
Estimate No. 7 ...... ... ... ... ... ... ... ... ... ... ... ... ....$23,396.97
APPROVED.
FRIDLEY CITY COUNCIL MEETING OF AUGUST 24, 2009 PAGE 3
APPROVAL OF PROPOSED CONSENT AGENDA:
Councilmember Bolkcom asked that Item No. 1 be removed from the consent agenda.
MOTION by Councilmember Barnette to approve the Consent Agenda with the removal of Item
No. 1. 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 No. 1.
Seconded by Councilmember Varichak.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
OPEN FORUM (VISITORS):
Mayor Lund said residents who like to have recreational fires need to follow the restrictions for
said fires. There should be no fires past midnight, the fire needs to be small, and residents
should only use dried, cured wood to reduce the smoke so it is not a nuisance to neighbors.
Residents could be sited if smoke gets into the household of neighbors. Please be neighborly
when having recreational fires.
Councilmember Bolkcom announced that on September 13 there will be a 30th Year Banfill-
Locke Center of the Arts Celebration from 10 a.m. to 4 p.m. There will be a lot of entertainment
for children and a great fun day is planned.
Mayor Lund said that the Central Center for Family Resources is a center that helps families
deal with mental health issues. He said he will be participating in a fundraiser by spending a 24-
hour period of time on a roof in their building in Fridley on September 13. Each Mayor
participating has a goal to raise $2,500.
OLD BUSINESS:
6. Review On-Sale Intoxicating Liquor License for William J. Bisek of JWBB, Inc., d/b/a
Baggan's Pub, Located at 3720 East River Road (Ward 3)
Don Abbott, Chief of Police, said that on April 13, 2009, City Council reviewed the renewal of
the on-sale intoxicating liquor license for JWBB Inc., d/b/ Baggan's Pub. The license was
reviewed due to stipulations that were placed on the liquor license on September 26, 2008. The
stipulations at that time were:
1. To continue to maintain the food to liquor ratio;
2. To work with the police department to provide a safe environment for staff and
patrons;
3. To have staff contact police when requested or needed;
FRIDLEY CITY COUNCIL MEETING OF AUGUST 24, 2009 PAGE 4
4. To have staff inembers working in capacity of management to apply for managerial
license;
5. To pay the delinquent property taxes;
6. To operate business as original license stated by not allowing another establishment
to take over the north side of the business; and
7. To maintain the business according to City Code.
Chief Abbott said on April 13, 2009, staff recommended non-renewal based on the following
information:
1. The escalation of police calls and violence occurring on the property;
2. The appearance of the operation of another establishment promoting events in the
north side of the business;
3. Staff's concern about appearance of certain revenues not being included in the overall
gross sales for food to liquor.
Chief Abbott said after reviewing all of the information from staff and the applicant, the renewal
license was continued to April 27, 2009. After receiving additional information and taking
additional testimony from the applicant and his attorney, the City Council approved the renewal
of the liquor license with the following conditions:
1. That the City Council will review the license August 24, 2009, to monitor the food to
liquor ration of the business and public safety concerns;
2. That if there are significant changes in the operation of the business or in the overall
order, peace and safety at the location, this will be grounds for a public hearing for
immediate license revocation by the City;
3. Any serious crime occurring prior to the August 24tn review is grounds for an immediate
public hearing for license revocation by the City;
4. Provide a monthly income statement similar in format to the 12-month profit and loss
statement provided in the April 16, 2009, written materials, showing transparency of the
flow of financial resources of the business; and
5. That the licensee meets monthly to review security and financial information with staff.
Chief Abbott said staff has met with the applicant monthly over the past four months to address
financial and security information at Baggan's Pub. Over the course of the past four months, the
financial food-to-liquor ratio has been maintained between 45 to 46% of gross food sales. The
applicant has incorporated different food specials including crab legs, prime rib and barbequed
ribs. As of July 31, 2009, the gross food sales for the year was $244,903 and the gross liquor
sales was $287,881 showing 46% gross food sales.
Chief Abbott said City staff reviewed police calls with Baggan's ownership and management
during each monthly meeting. Police stressed the importance of Baggan's staff security detail
calling in problems on the property to send a clear message that they would not tolerate disorder
on the premise. In the four months leading up to the Council Meeting on April 27, police
responded to 34 calls for service including three felony level assaults. In the three months
following that meeting, the number of calls decreased to 25 with the more recent summer months
having the lower numbers of calls. Only one felony level assault is known to have occurred. That
incident occurred June 25 when Baggan's staff called police to report shots fired in the parking
lot. No one was injured in this incident and the victim was not cooperative with police.
FRIDLEY CITY COUNCIL MEETING OF AUGUST 24, 2009 PAGE 5
Chief Abbott reviewed the 2009 Calls for Service: January - 4(including 1 felony assault), February
- 4, March - ll(including 2 felony assaults), April - 17, May - 10, June - 7(including 1 felony assault),
and July - 6. The total calls for 2009 from January 1 through July 30 were 59.
Chief Abbott said due to the decreasing number and nature of the calls, approximately 1.75 calls
per week, the Police Department expects to see no more than 97 calls in 2009. If that rate were to
hold for all of 2010, we could expect 91 calls for that year. Overall, Baggan's appears to be
following their security plan. Of particular note is the significant increase in the proportion of
police calls that are now originating from Baggan's staff. Earlier this spring, only 22% of police
calls originated from employees. Since the Council meeting of Apri127, 65% of calls were made
by their staf£ Baggan's has repaired e�terior lighting and continues to employ uniformed
security guards to patrol their parking lot.
Chief Abbott said since Baggan's Pub has complied with the stipulations of the license by
meeting the gross food to liquor sales and decreasing the number and nature of police calls, staff
is recommending that the meetings with the applicant change from monthly to quarterly, as long
as the incidents remain leveled off and nonviolent and the stipulations on the 2009-2010 license
remain.
Chief Abbott said that Baggan's Pub is delinquent in sales tax and until this is paid intoxicating
liquor cannot be purchased for resale. Mr. Bisek is working to make payment arrangements.
Councilmember Bolkcom asked for clarification that the license cannot be revoked due to non-
payment of taxes.
Fritz Knaak, City Attorney, said that is correct. A new license could not be granted if it was for
anew applicant but this situation is for review, not renewal.
Councilmember Bolkcom asked when the license is up in April if the taxes were not up-to-date,
they could not renew the license.
Attorney Knaak said that is correct.
Councilmember Bolkcom asked if anyone could purchase intoxicating beverages for Mr. Bisek
to sell at his establishment.
Attorney Knaak answered legally, no.
Mayor Lund said that a favorable report came back from the Police Department but it sounds
like the establishment is struggling financially to make things work.
William Bisek, 3720 East River Road, clarified the question Councilmember Bolkcom had
about purchasing liquor from someone else rather than a distributor for resale and said that
would be illegal. Baggan's Pub was posted on the liquor "black list" and this is unfortunately a
common problem within the industry. This happens for a number of reasons, and part of their
issue is the added expense for security and some of the changes that had to be made in the
establishment. A number of things account for the shortfall and currently there is enough
inventory to sell intoxicating beverages for about two weeks. He plans on being caught up with
the taxes this week, so he will be able to purchase from distributors shortly thereafter.
FRIDLEY CITY COUNCIL MEETING OF AUGUST 24, 2009 PAGE 6
Councilmember Bolkcom asked if distributors get a copy of the list.
Mr. Bisek answered yes, the list is sent out to the distributors once a week. We are very closely
regulated and they are on top of everything we do. If you are on the list, the distributors are not
allowed to come on the property. If the distributor gets caught coming on the property they will
get fined.
Councilmember Bolkcom said Mr. Bisek needed to make improvements for a safer
establishment and commended the good job that was done. Council will continue to look at how
the business is going and the Police Department will continue to monitor activities. If
unacceptable reports arise Council will be made aware of what is going on. Hopefully the issues
related to the tax problems can be worked out.
Mayor Lund asked if staff would have knowledge when Mr. Bisek is removed from the list.
Chief Abbott said they are not notified by the State but the City Clerk will have information on
this issue and can check on the status.
Mr. Bisek said he would bring a receipt to Ms. Skogen when he is removed from list.
Deb Skogen, City Clerk, said the State will take them off list two days after the taxes are paid.
Information can be found online and will be updated daily. Staff will watch the site and inform
Council when he is removed from the list.
Councilmember Bolkcom asked how this information was found out for tonight.
Mr. Skogen said the information was seen in the newspaper article and a link to the website was
listed. She notified Mr. Bisek right away and he said he would communicate the information
back to the city.
7. Approve Antenna Site Lease Agreements Between the City of Fridley and TTM
Operating Corporation, Inc., for Water Tower No. 1 and Water Tower No. 2(Tabled
August 10, 2009)
MOTION by Councilmember Bolkcom to remove this item from the table. Seconded by
Councilmember Saefke.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY
Jim Kosluchar, Public Works Director, said at the August 10, 2009, Council meeting, the lease
agreement was reviewed and was tabled. Staff understands that if there were inflationary
increases in the coming years, the City would recover. Staff has worked with TTM and they
have advised that the CPI annual adjustment would be preferable and acceptable to them. The
CPI annual adjustment along with the minimum 3% annual adjustment has been included in the
revised TTM leases. Staff recommends Council's approval.
FRIDLEY CITY COUNCIL MEETING OF AUGUST 24, 2009 PAGE 7
Councilmember Saefke noted typographical errors in the agreement under "Rent." In the first
paragraph "equal to" is repeated twice and in the second paragraph change "shall e" to "shall
be".
MOTION by Councilmember Bolkcom to approve the Antenna Site Lease Agreements between
the City of Fridley and TTM Operating Corporation, Inc., for Water Tower No. 1 with the
typographical errors corrected. Seconded by Councilmember Barnette.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY
MOTION by Councilmember Bolkcom to approve the Antenna Site Lease Agreement between
the City of Fridley and TTM Operation Corporation, Inc., for Water Tower No. 2 with the
typographical errors corrected. Seconded by Councilmember Saefke.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
1. Resolution to Vacate a Portion of 61st Way Right-of-Way Only to Allow for the
Construction of the Northstar Park and Ride Lot, Generally Located at 6151 West
River Road N.E. (Ward 3).
Councilmember Bolkcom asked if this item is being treated any different than other petitioners
who have been before Council in the past.
Scott Hickok, Community Development Director, said this item is being treated identically.
Councilmember Bolkcom asked about the delays related to the two stipulations.
Mr. Hickok said staff wanted to make certain all agencies and utilities running through the area
were protected. The added time was necessary to make sure everything was in place related to
the stipulations.
MOTION by Councilmember Bolkcom to adopt Resolution No. 2009-31 with the following two
stipulations:
1. Petitioner shall provide utility easements legal description within vacation area to be
filed upon approval of the vacation request.
2. Petitioner shall provide north/south access easement legal description to be filed upon
approval of the vacation request.
Seconded by Councilmember Saefke.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
FRIDLEY CITY COUNCIL MEETING OF AUGUST 24, 2009 PAGE 8
PUBLIC HEARING:
8. Preliminary Assessment Hearing on Street Rehabilitation Project No. ST 2009-02.
MOTION by Councilmember Saefke to waive the reading of the public hearing notice and open
the public hearing. Seconded by Councilmember Bolkcom.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY, AND THE PUBLIC HEARING OPENED AT
8:20 P.M.
James Kosluchar, Public Works Director, said this is the fifth year under the City's major
maintenance program for asphalt streets that have concrete curb and gutter. This program was
developed to rehabilitate the deteriorated asphalt surface on a recurring schedule. The program
targets the condition of pavements where pothole patching, crack sealing, and sealcoating are no
longer sufficient to efficiently maintain a quality surface.
Mr. Kosluchar said the poor condition rating of streets gives initiative to a rehabilitation project.
Factors used to establish the condition rating based on annual inspections include: surface wear,
weathering, skid resistance, uniformity, crack size and condition, and ride quality. Other factors
that affect prioritization of projects include the street does not require reconstruction to meet
standards (base, width, curbing, etc.), the time since last major maintenance, the interim
maintenance work performed/required, the need for utility construction, the adjacent project
activity and the source(s) of funding available.
Mr. Kosluchar said the recommended work is for 61St Avenue and Moore Lake Drive to receive
2" mill and overlay (except University Avenue to 7th Street), pedestrian/bikeway improvements
and minor underground utility repairs to precede the mill and overlay. The approximate
schedule to complete the mill and overlay will be about 4 weeks, and they hope to start/finish in
October. If all goes as planned, the utility work would begin in August 2009, the bids for
repaving would be opened in September 2009, construction would begin in October 2009,
construction completed in November 2009 and the public hearing to set the special assessments
and start the assessment payments in 2011 would be scheduled in October 2010.
Mr. Kosluchar said the property owners were sent a mailing on August 10 which included the
notice of an open house which was held on August 18, 2009 (there were 12 attendees and three
City Council members present), the notice of a public hearing to be held on August 24, 2009, and
a project questionnaire which was mailed on August 19, 2009.
Mr. Kosluchar said the estimated project cost is $463,000. The breakdown of the funds is as
follows: $265,000 from ARRA/Fridley Municipal State Aid account; $182,000 special
assessment to adjacent properties (39%) ($147,000 to commercial properties and $35,000 to
residential properties); $5,000 from the Water Utility Fund; $5,500 from the Sanitary Sewer
Utility Fund; and $5,500 from the Storm Water Utility Fund.
Mr. Kosluchar reviewed the calculation process for non-R1/R2 property assessments. The
assessable frontage is measured adjacent to street and set back 35' from the property line. The
non-R1/R2 assessment is calculated by dividing the total cost by length of property frontage to
determine the cost per foot. Non-assessable property is covered by the City, not the property
owners. The estimated cost per center line foot is determined to be approximately $74. Each
FRIDLEY CITY COUNCIL MEETING OF AUGUST 24, 2009 PAGE 9
side of the street pays 50% of the cost per center line foot to resurface the street or $37 per lineal
foot.
Mr. Kosluchar said the residential properties addressed on the street being rehabilitated are
assessed. If the property is addressed on a state highway or county road, they will be assessed
with the neighborhood. Corner lots are assessed on one side only. The assessment is based by
dividing the total of mill and overlay costs serving residential area by the number of residential
properties.
Mr. Kosluchar said that City Council will be considering a policy modification that twin homes
and double bungalows should contribute the equivalent of 1.5 properties if they have only one
property identification number. The R1/R2 property assessment is estimated at $1,380 per unit.
Mr. Kosluchar stated that properties on the south side of East Moore Lake Drive are assessed
based on area for the southerly half of the roadway, as there are non-adjacent properties with
direct access.
Mr. Kosluchar reviewed the three payment options. Option 1 would be to pay a lump sum
within 30 days of the final assessment hearing. Option 2 would involve adding an amount to
property taxes that are paid over 10 years with an interest rate to be determined (typically 6.5 to
7.0%). Option 3 is for senior citizens meeting certain criteria. They may request to have the
assessment deferred until the future sale of the property. Interest does accrue until the property
is sold.
Mr. Kosluchar said that if residents have any questions regarding the City project, they may
contact either James Kosluchar, Director of Public Works, at 763-572-3550,
koslucharj�a�ci.fridle .v mn.us or Layne Otteson, Assistant Director of Public Works, 763-572-
3551, ottesonl �Ici.fridleX.
MOTION by Councilmember Varichak to receive a letter from Connie Metcalf dated August
21, 2009. Second by Councilmember Bolkcom.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY
Councilmember Varichak asked when a road is repaired, how long it would be until it is
repaired again.
Mr. Kosluchar said heavy use of the road is a factor, but the City is trying to get 40 years out of
a repaired road. The plan is 20 to 30 years between resurfacing. The City does not reconstruct a
street just because the street is old. Sealcoating is done on an eight-year cycle for maintenance in
the interim. The goal is to try not to let the streets get too far out of condition so more costly
road reconstruction is needed.
Councilmember Varichak asked how this section of street was selected for stimulus funding.
Mr. Kosluchar said this area is in a group of projects scheduled for 2010, and it also has a lot of
public property which helped with the decision to apply stimulus funding.
FRIDLEY CITY COUNCIL MEETING OF AUGUST 24, 2009 PAGE 10
Councilmember Bolkcom said this project was slated for 2010 and was moved up because of
the Stimulus program which is why the neighborhood was not notified ahead of time. She asked
if this project had been done in 2010, if City staff would have started working on plans before
the neighborhood meetings.
Mr. Kosluchar said this work has been accelerated. Even looking out five years, staff has to
look at the financial and technical perspective.
Councilmember Bolkcom said this project is helping the City because of the Stimulus Funds
that were received. There is not a lot of time and a project needed to be underway to be
considered so other parts of the City were not looked at.
Mr. Kosluchar said other candidates were identified but not selected. Staff was not notified that
this project was approved until June, so staff has been scrambling on this project since that time.
Councilmember Bolkcom said this segment was chosen because there is a fair amount of public
property in the area. She asked if other projects were done similar to this and if the assessment
policy related to residential and commercial properties was similar to other projects.
Mr. Kosluchar replied yes, assessments are all applied the same.
Councilmember Bolkcom asked if staff had reviewed neighboring community assessments.
Mr. Kosluchar said yes and the City of Fridley was in the middle of the range. Since 2005,
Fridley has been doing these projects on a consistent basis. Assessments have been rising due to
the price of oil which increases the project cost.
Councilmember Bolkcom asked if neighboring community assessments varied across the
board.
Mr. Kosluchar said they did.
Councilmember Bolkcom asked if the project would be finished in October and what would
happen if the project was not completed until ne�t year.
Mr. Kosluchar said he is concerned about bid approval and when staff can come to Council
with board recommendations because of the State criteria and other stimulus project
requirements. Staff has concerns that the project will not get completed in the time frame they
had wanted.
Councilmember Bolkcom said asked if this work can be done if it is too cold.
Mr. Kosluchar said there are limits and temperature requirements. Staff is doing their best and
trying to be aggressive with time frames.
Councilmember Bolkcom asked if the Stimulus paperwork was completed on time but the
construction did not get done this year, if the project would still meet the criteria for the Stimulus
funds.
FRIDLEY CITY COUNCIL MEETING OF AUGUST 24, 2009 PAGE 11
Mr. Kosluchar said yes.
Councilmember Barnette said he met with representatives from the High School and they were
concerned with the bike lanes and the possibility of no parking signs. The Middle School is also
changing the policy for parents who pick up students which also raises concerns. Also during
the Fridley football games they park along 61st Avenue. He asked if there was any resolution to
those concerns.
Mr. Kosluchar said he understands the school has project concerns with their operation, and
staff needs to take that into account. Several operational items have been discussed to
accommodate them in project design, schedule and construction time frame.
Jerry Dold, 6073 3rd Street NE, had a question about what point the City breaks from residential
to commercial property. His estimated assessment for a three-unit building is $5,362.18 and he
is across from an 18-unit apartment whose assessment is $5,852.76. The difference is $490.58
between a 3-unit building and an 18-unit building. A double bungalow falls into residential and
because his unit has three units he feels he is being penalized. If possible he is asking for a
reduction.
Mr. Kosluchar said the current policy has a very distinct line. An R1/R2 property up to two
units is subject to residential assessment, but commercial assessments are still based on lineal
footage.
Mayor Lund said the 18-unit apartment must be subject to assessment on its narrow side. There
is no real good cut off from residential to commercial property.
Mr. Dold said his building is three single homes which would be about $3,900. He would even
be happy with that assessment. He was just stating his case and trying to understand justification
of his assessment.
Mayor Lund said the assessments are based on footage and the usage of the road.
Councilmember Bolkcom asked if there were any other triplexes in the area.
Mr. Dold said he owns the only triplex in the area. There is an 8-unit building that was
estimated at $4,900 and he was still several hundred dollars higher.
Mayor Lund asked Mr. Dold to give Council time to review this matter.
George Applebaum, Moore Lake Commons Shopping Center, 1001 East Moore Lake Drive,
said he is not in favor of this because he is looking at $31,000 in assessments to distribute to
tenants who are struggling to stay in business. Looking at the maps, 20 to 25% of the length of
this project is residential assessments and the rest is commercial assessments.
Mayor Lund said Mr. Applebaum has a lot of footage on the road and residents are assessed
differently.
Mr. Applebaum said that it seemed like he was paying a higher percentage.
FRIDLEY CITY COUNCIL MEETING OF AUGUST 24, 2009 PAGE 12
Mayor Lund said a large percentage of the project is public land that is not assessed. With the
Stimulus funds, the project needs to get going or the City could lose the Stimulus money. This
was the ne�t project in line in anticipation for ne�t year.
Mr. Applebaum said the Stimulus seems to help the City and residents but not commercial
property owners. The commercial property owners are paying for the entire project of the road
in front of their property and they do not get any benefit.
Mayor Lund said if the Stimulus were taken out of the equation, commercial property owners
would pay the same assessment, but the Stimulus helps the City as the City will spend less out of
the road funds. If the City used the Stimulus to bring down the assessment it would be unfair to
others who have paid for their fair share in the past.
Councilmember Bolkcom said there is not much City-owned property but there is quite a bit of
public property like schools in this project. The HRA has property and they will have to pay an
assessment. The residential properties are being assessed just like other properties have been in
the past.
Councilmember Saefke said the commercial properties will benefit from having decent roads.
Mayor Lund said staff is trying to be consistent and fair. The basis for the assessment is
looking at the traffic that commercial businesses bring on the roads and assessing the total
amount of the road to commercial businesses.
Mr. Applebaum said 40% of the project is assessed and commercial property owners are paying
100% on their section.
Mr. Kosluchar said if the project was looked at in isolation, Mr. Applebaum is correct in that
they are assessed for their side of the road.
Mr. Applebaum said commercial business owners get no benefit from the City or state aid
funding.
Sam Stern, 247 3rd Avenue South, Minneapolis, said Council keeps referencing to the historic
relevance but it may be time to see if there is another model that works for everyone.
Commercial presence in Fridley enhances Fridley taxes. In terms of traffic, the count on East
Moore Lake Drive is 8,000 cars per day. The shopping center on a good day has 1,000 visits so
there is a lot of traffic that does not stop in the shopping center using the roads. The City is
asking commercial property owners to subsidize the improvement of a street that benefits the
community at large. It is unfair to commercial property owners to bear the brunt of this expense.
Councilmember Saefke asked if commercial property owners could pay their assessment over a
10-year period.
Rick Pribyl, Finance Director, said if the assessments are not prepaid, it could be paid over 10
years with the real estate taxes. Special assessments can be paid off at time during the 10-year
period and there is no penalty for early payoff.
FRIDLEY CITY COUNCIL MEETING OF AUGUST 24, 2009 PAGE 13
Kay Herrmann, 260 - 61st Avenue, said she was in favor of this project but was concerned with
the bike lane. She owns her home on 61st and if the bike lane is installed no one could park on
61st Avenue. The bike lane is a good thing but parking is also needed on the street.
Mayor Lund asked if a bike lane was going to be installed on both sides of the street.
Mr. Kosluchar said they were looking at that option and eliminating the parking on 61st
Avenue. Staff is looking for a way to accommodate both uses and possibilities include: parking
on one side and a bike lane on the other.
Shirley Schmitt, 870 West Moore Lake Drive, asked if staff could install the bike path on
another street that is not so busy. The street is needed for overflow parking because of the
church and guests of households. Asking them to give up the parking is a lot to ask for.
Mayor Lund asked if having a designated bike lane on one side with parking on the other would
be an option.
Ms. Schmitt said that was not an option on the survey.
Anne Schoolcraft, 851 West Moore Lake Drive, said that the section of road she lives on looks
pretty good but because the entire street needs to be done, they are along for the ride.
Mayor Lund said if the entire street is not done the street looks patchy. Staff looks at the
overall general view of the street.
Ms. Schoolcraft said there is a lot of traffic from school busses and the school is not
contributing to the assessment, which does not seem fair.
Mayor Lund said the schools are public and exempt. Tonight's meeting is to see if people agree
that the roads need to be done. It is not about the assessment.
Ms. Schoolcraft said the bike lanes are used frequently but the street parking is also very
valuable.
Mr. Kosluchar commented on the condition of the streets. When staff is looking into an area
where resurfacing is needed, some sections of the street could get by for a few more years but it
is unknown when the City will be back to this area. It could be another 10 to 12 years.
Councilmember Bolkcom said if the City took the worst roads and pieced them together
throughout the city, it could be hard to get a contractor interested. Usually a section of streets is
needed because it would cost more money to move staff and equipment around.
Mr. Dold asked if there would be a way to add a thicker layer in his area because the semi
trailers really beat up the road.
Mr. Kosluchar said that they would look to see what can be done to thicken that area by'/z inch.
MOTION by Councilmember Barnette to close the public hearing. Seconded by
Councilmember Varichak.
FRIDLEY CITY COUNCIL MEETING OF AUGUST 24, 2009 PAGE 14
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED AND THE PUBLIC HEARING CLOSED AT 9:50.
NEW BUSINESS:
9. Resolution Ordering Final Plans, Specifications and Calling for Bids: 2009 Street
Rehabilitation Project No. ST 2009-02.
MOTION by Councilmember Varichak to approve Resolution No. 2009-32. Seconded by
Councilmember Bolkcom.
Councilmember Bolkcom asked staff to research how triplex buildings are assessed.
Mayor Lund said staff needs to look into a bike path verses parking and what was done in the
past for assessments. The value and amounts of preliminary assessments and other factors,
including traffic counts, need to be taken into consideration.
Councilmember Bolkcom asked staff to get the actual traffic counts on 61st Avenue.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
10. Resolution Certifying Proposed Tax Levy Requirements for 2010 to the County of
Anoka.
Richard Pribyl, Finance Director, stated the proposed 2010 levy complies with both state law
and the City Charter requirements regarding inflationary increases and public disclosure. The
total proposed levy for 2010 is $10,299,707 or 8.73% more than the 2009 levy. The inflationary
increase associated with the City Charter levy increase for 2010 is 3.8%. The inflationary
increase for 2009 was 2.6%, but due to the statewide levy limits imposed during the 2008
legislative session, the 20091evy decreased from the 2008 amount by ($54,946).
Mr. Pribyl said the proposed levy restores the lost inflationary increment for 2009. This levy
includes $698,141 for 2005-2008 General Obligation debt. This levy is currently under the
statewide levy limit by $627,247. This is a"proposed" levy and is required to be provided to
Anoka County by Sept. 15.
Mr. Pribyl said during the 2009 legislative session several significant changes were made to the
Truth-in-Taxation process: repealed requirements to hold a special Truth-in-Taxation public
hearing, continuation hearing and levy adoption; repealed requirement to publish a notice of a
Truth-in-Taxation hearing and proposed taxes; and newly adopted the opportunity to recertify the
final levy to account for unallotments affecting December aid and credit payments. Another
change regarding the Truth-in-Taxation process is that in lieu of the formal Truth-in-Taxation
hearing we were required to hold, we are now required to use a regularly scheduled council
meeting to discuss the budget and levy and make a determination on the final levy. This meeting
would need to be held between November 25 and December 26. The public would be allowed to
speak at this meeting regarding the budget and levy. As part of tonight's meeting, we are
FRIDLEY CITY COUNCIL MEETING OF AUGUST 24, 2009 PAGE 15
required to announce the time and place of the subsequent regular meeting at which the budget
and levy will be discussed and the public is allowed to speak.
Mr. Pribyl said that in keeping with the new state law regarding budget hearings for the 2010
budget, we are announcing tonight that the public hearing for the 2010 Budget and tax levy will
be held on December 7 at 7:30 p.m. at the Fridley Municipal Center. We will also be holding the
second of two budget work sessions on October 19 at 6:00 p.m. in Meeting Rooms 1 and 2 at the
Fridley Municipal Center. Staff's recommendation is to approve the resolution certifying the
proposed tax levy requirements for 2010 as shown below:
General Fund $9,280,966
Agency Fund — Six Cities $ 6,200
Springbrook Nature Center $ 314,400
Bonded Indebtedness $ 698,141
Total Proposed Levy $10,299,707
Mayor Lund asked why the City is less than the state-imposed levy limits and why Fridley is so
far below that. With this budget, the City will be over $1.0 million short by taking reserve funds
to balance our budget.
Mr. Pribyl said when looking at the local levy limit, the levy approval is at $10 million without
taking into consideration some of the unallotments on the statewide limit to be used as an actual
levy.
Mayor Lund said with respect to the unallotments that were taken away from cities, in some
cases, the city can levy back the unallotments.
Mr. Pribyl said the City has not levied back those unallotments. The $10.9 million does not
take into consideration the unallotments. With the current Local Government Aid, about
$750,000 in transfers were made to the General Fund. With the changes that have been seen
recently with certified LGA and levy limit allocations, that is what the shortfall adds up to.
Mayor Lund said month to month it has been difficult and it is very hard to project if the City
will be black or red from year to year. The bottom line is the City keeps dipping into the
reserves and the reserves are diminishing very quickly. Council would like to keep some savings
for the City.
Councilmember Saefke commented it has been said that this City is able to collect all of their
unallotment and he wanted to make it clear that this is not really the case.
Mr. Pribyl said at this point in time, the City has not actually pursued those unallotments with
the local levy limit. Staff has discussed with the City Attorney but his feeling is the City can add
those amounts to the local levy limit. At this time the local levy has only been added to street
projects and annual inflationary increases.
Councilmember Saefke asked why the City is not attempting to recover the amount.
Mayor Lund said even with the local Charter restriction the City can add in the unallotments. If
this item were approved tonight, it does not include adding in the unallotments. Once this is
FRIDLEY CITY COUNCIL MEETING OF AUGUST 24, 2009 PAGE 16
approved, the levy cannot be raised but it can be reduced. Because this information was just
received, maybe Council should take a look at adding in the unallotments and recommended
tabling this item until the ne�t Council meeting.
MOTION by Councilmember Bolkcom to table this resolution until September 14, 2009.
Seconded by Councilmember Varichak.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY
11. Resolution Adopting the Proposed Budget for the Fiscal Year 2010.
Richard Pribyl, Finance Director, said the certification of the "Proposed Budget" must be to the
County Auditor before September 15 in accordance with the newly enacted State law regarding
budget levies. The City is following all of the requirements laid out in Chapter 275 of the State
statutes and is also complying with Chapter 7.05 of the City Charter requiring that it be the
principal item of business at the last regular meeting of August.
Mr. Pribyl stated that for 2010, the economy continues to play a role in the difficulty of
developing departmental budgets that continue to provide the same level of service as provided
in the current year's budget. A major issue the City grapples with annually is the State's
economic condition and the loss or decertification of Local Governmental Aid (LGA). The City
has once again made many budget cuts, yet will continue to provide the same level of service.
Mr. Pribyl said the "2010 Proposed Budget" is being presented to you this evening along with a
resolution to approve it as a"Proposed" Budget for 2010. As in the past, the City Manager will
be providing to you with an in-depth overview of the 2010 Budget during the December 7
Council meeting in the form of a public hearing. The remaining steps in the budgeting process
are as follows:
• Council Budget work session held on October 19 (Second of two work sessions,
first was on June 15).
• Public Hearing on the Budget, December 7, which will include discussion on both
the levy and budget resolutions.
• Resolutions approving the 2010 Tax Levy and the Budget on December 14.
Mr. Pribyl said that the budget before you should be viewed as the "Proposed Budget" for 2010.
Staff recommends Council's approval.
MOTION by Councilmember Saefke to adopt Resolution No. 2009-33. Seconded by
Councilmember Bolkcom.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY
FRIDLEY CITY COUNCIL MEETING OF AUGUST 24, 2009 PAGE 17
12. Informal Status Report.
Councilmember Bolkcom has been asked why the Osborne Street sign is not illuminated. She
said when the street is upgraded it will be lit.
ADJOURN:
MOTION by Councilmember Barnette to adjourn. Seconded by Councilmember Varichak.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION
CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 10:30 P.M.
Respectfully Submitted,
Krista Monsrud Scott J. Lund
Recording Secretary Mayor