12/15/2008 - 6167�. < R
CfIY OF
FRIDLEY
FRIDLEY CITY COUNCIL MEETING
OF DECEMBER 15, 2008
7:30 p.m. - City Couacil Chambers
Attendance Sheet
PIFASF AR/MT NAM�, ADDRFSS AND I7�M NUMBFR YCU ARS /NTFRFSTfD /N.
P�int Na`�e (G�early� Address: Iteia N+�. '
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FRIDLEY CITY COUNCIL MEETING OF DECEMBER 15, 2008
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 sta.tus 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 disabilities
who require auxiliary aids should contact Roberta: Collins at 572-3500 at least one week in advance.
(TTD/572-3534)
PLEDGE OF ALLEGIANCE.
APPROVAL OFPROPOSED CONSENT AGENDA:
NEW BUSINESS:
1. Resolution Certifying Final Tax Levy Requirements
for 2009 to the County of Anoka ..... 1- 2
ofLOOg' % �
2. Resolution Adopting the Final Budget for the Fiscal
Year2009 ................................... 3 - 5
Zo0$-(0/
3. Resolution Authorizing a Change in Mileage
Reimbursement Rates for the 2008 Calendar
Year................................... 6 - 7
Z.G��'�o2
4. Resolution Approving Special Legislation
(2008 Second Tax Bill) (Laws of Minnesota
2008, Chapter 366, Article 5,
Section 23) ....'..................... ....... 8 - 12
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5. Resolution Ordering Preparation of a Preliminary
Report and Preliminary Plans and Specifications
for Street Rehabilitation Project No. ST.
2009 —1 .............. .................. 13 - 18
Z00$• (�+t�
6. Approve Agreement for Legal Services
between the City of Fridley and Newquist
& Herrick Law Offices, P.C., and Carl J.
Newquist ................................... 19 - 23
APPROVALOFPROPOSED CONSENT AGENDA:
NEW BUSINESS (CONTINUED):
7. Claims
8. Licenses
9. Estimates
ADOPTION OF AGENDA:
24
................ 25 - 26
27
OPEN FORUM. VISITORS: Consideration of items not
on Agenda —15 minutes.
NEW BUSINESS:
10
11
Resolution Approving Recycling Service
Fees................................................ 28 - 29
2oa$-�5
Resolution Providing for Sewer Structure
and Rate Change ........................... 30 - 31
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� CITY COUNCIL MEETING OF DECEMBER 15, 2008
�ffY �F
FRIDLEY
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 disabilities who require auxiliary aids should contact Roberta Collins at
572-3500 at least one week in advance. (TTD/572-3534)
PLEDGE OF ALLEGIANCE.
APPROVAL OF PROPOSED CONSENT AGENDA:
NEW BUSINESS:
1. Resolution Certifying Final Tax Levy Requirements
for 2009 to the County of Anoka ..................................................................... 1- 2
2. Resolution Adopting the Final Budget for the Fiscal
Year2009 ....................................................................................................... 3 - 5
3. Resolution Authorizing a Change in Mileage
Reimbursement Rates for the 2008 Calendar
Year....................................................................................................... 6 - 7
4. Resolution Approving Special Legislation
(2008 Second Tax Bill) (Laws of Minnesota
2008, Chapter 366, Article 5, Section 23) ....................................................... 8- 12
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 15, 2008 PAGE 2
APPROVAL OF PROPOSED CONSENT AGENDA:
NEW BUSINESS:
5. Resolution Ordering Preparation of a Preliminary
Report and Preliminary Plans and Specifications
for Street Rehabilitation Project No. ST. 2009 — 1 .......................................... 13 - 18
6. Approve Agreement for Legal Services
between the City of Fridley and Newquist
& Herrick Law Offices, P.C., and Carl J.
Newquist....................................................................................................... 19 - 23
7. Claims ....................................................................................................... 24
8. Licenses ....................................................................................................... 25 - 26
9. Estimates ....................................................................................................... 27
ADOPTION OF AGENDA:
OPEN FORUM, VISITORS: Consideration of items not on Agenda — 15 minutes.
NEW BUSINESS:
10. Resolution Approving Recycling Service
Fees................................................................................................................ 28 - 29
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 15, 2008 PAGE 3
NEW BUSINESS (CONTINUED):
11. Resolution Providing for Sewer Structure
andRate Change ............................................................................................ 30 - 31
12. Resolution Providing for a Storm Water
Drainage Rate Change ................................................................................... 32 - 33
13. Resolution Providing for Water Structure
andRate Change ............................................................................................ 34 - 36
14. Informal Status Reports .................................................................................. 37
ADJOURN.
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FRIDLEY
TO:
FROM:
AGENDA ITEM
COUNCIL MEETING OF DECEMBER 15, 2008
WILLIAM W. BURNS, CITY MANAGER
RICHARD D. PRIBYL, FINANCE DIRECTOR
CRAIG A. ELLESTAD, ACCOUNTANT
SUBJECT: RESOLUTION CERTIFYING THE FINAL TAX
LEVY FOR 2009 TO THE COUNTY OF ANOKA
DATE: NOVEMBER 21, 2008
In conformance with Minnesota Statutes Chapter 275.07, subd. 1 attached is a
Resolution certifying the final tax levy requirements to Anoka County.
Chapter 275.07, subd. 1 also requires the City to certify its final tax levy requirements
to the County Auditor within 5 working days after December 2ptn
The final tax levy for 2009 is $9,472,487 compared to $9,527,433 for 2008.
The make-up of this is:
$9,527,433
247,713
$9,775,146
147,500
$9,922,646
�9,472,487
Certified to County for 2008
2.6% inflation amount
2009 Proposed Tax Levy
2008A Street G.O. Bond Levy
Total 2009 Levy Before State Levy Limit
2009 Levy Per State Levy Limit
We request the City Council pass the attached resolution to certify the final tax levy.
Remember that this resolution must be adopted prior to adopting the final budget.
R D P/ce
Attachment
RESOLUTION NO. 2008 _
A RESOLUTION CERTIFYING FINAL TAX LEVY
REQUIREMENTS FOR 2009 TO THE COUNTY OF ANOKA
WHEREAS, Chapter Seven, Section 7.02 of the Charter of the City of Fridley, grants the City
the power to raise money by taxation pursuant to the laws of the State of Minnesota; and
WHEREAS, Minnesota Statute Chapter 275.07, subd. 1 requires the City to certify its final tax
levy requirements to the County on or before five working days after December 20 in each year;
and
NOW THEREFORE, BE IT RESOLVED, that the City of Fridley certify to the County of
Anoka, State of Minnesota, the following final levy to be levied in 2008 for the year 2009:
GENERAL FUND
General Fund
CAPITAL PROJECT FUND
Capital Improvement Fund — Parks Division
AGENCY FUND
Six Cities Watershed Management Organization
MARI�ET VALUE BASED REFERENDUM LEVY
Springbrook Nature Center
BONDED INDEBTEDNESS
2005A GO Improvement Bonds (Streets 2005)
2006A GO Improvement Bonds (Streets 2006)
2007A GO Improvement Bonds (Streets 2007)
2008A GO Improvement Bonds (Streets 2008)
TOTAL ALL FUNDS
$8,352,474
107,300
6,200
$ 302,900
170,113
201,400
184,600
147,500
$9,472,487
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS
15TH DAY OF DECEMBER, 2008
SCOTT J. LUND — MAYOR
ATTEST:
DEBRA A. SKOGEN — CITY CLERK
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FRIDLEY
TO:
FROM:
SUBJECT
DATE:
AGENDA ITEM
COUNCIL MEETING OF DECEMBER 15, 2008
WILLIAM W. BURNS, CITY MANAGER
RICHARD D. PRIBYL, FINANCE DIRECTOR
CRAIG A. ELLESTAD, ACCOUNTANT
RESOLUTION ADOPTING A FINAL BUDGET
FOR THE FISCAL YEAR 2009
NOVEMBER 21, 2008
In conformance with Chapter 275.065, subd. 6 of the Minnesota Statutes, attached is the 2009
final budget.
Chapter 275.07 subd. 1 requires the City to certify a final budget to Anoka County five working days
after December 20th each year.
We request the City Council pass the attached resolution and adopt the 2009 final budget.
Remember that the levy resolution must be adopted prior to adopting the budget.
R D P/ce
Attachment(s)
RESOLUTION NO. 2008
A RESOLUTION ADOPTING THE FINAL BUDGET
FOR THE FISCAL YEAR 2009
WHEREAS, Chapter 7, Section 7.04 of the City Charter provides that the City Manager shall prepare an annual
budget; and
WHEREAS, the City Manager has prepared such document and the City Council has met several times for the
purpose of discussing the budget; and
WHEREAS, Chapter 275.065, subd. 6 of Minnesota Statutes requires that the City shall hold a public hearing to
adopt its final budget; and
WHEREAS, the City Council has held a public hearing and has concluded the budget as prepared is appropriate;
NOW THEREFORE, BE IT RESOLVED that the following final budget be adopted and approved:
ESTIMAT APPROPRIATIONS
ED
REVENUE
GENERAL FUND Le islative:
Taxes Cit Council $121,636
Current Ad Valorem $8,352,474 Cit Mana ement:
Delin uent, Penalties, Forfeited 78,000 General Mana ement 289,764
Licenses and Permits Human Resources 208,470
Licenses 207,200 Le al 412,460
Permits 482,200 Finance:
Inter overnmental: Elections 3,109
Federal 7,000 Accountin 756,858
State: Local Government Aid 1,332,853 Assessin 197,919
AllOther 657,482 MIS 287,754
Char es for Services: Cit C1erWRecords 179,779
General Government 1,028,700 Police:
Public Safet 227,200 Police 5,210,777
Public Works 50,600 Emer enc Mana ement 23,556
Communit Develo ment 10,000 Fire:
Recreation 262,000 Fire 1,318,782
Fines and Forfeits 250,000 Rental Ins ections 150,832
S ecial Assessments 14,500 Public Works:
Interest on Investments 190,000 Munici al Center 281,042
Miscellaneous Revenues 204,600 En ineerin 548,899
Other Financin Sources: Li htin 258,050
Sales of General Fixed Assets 0 Park Maintenance 1,062,260
Li uor Fund 500,000 Street Maintenance 1,194,987
Closed Debt Service Fund 250,000 Gara e 460,037
Recreation•
Recreation 953,670
Communit Develo ment:
TOTAL REVENUE AND OTHER BUlldlri IriS ection 350�798
FINANCING SOURCES 14,105,009 Plaririlri 471,901
Reserve•
Fund Balance: Emer enc 105,000
General Fund Reserve 815,081 Nonde artmental: 71,750
TOTAL GENERAL FUND $14,920,090 $14,920,090
ESTIMATED APPROPRIATION
REVENUE S
SPECIAL REVENUE FUNDS
Cable TV Fund $251,000 Cable TV Fund $155,495
Grant Mana ement 114,149 Grant Mana ement Fund 114,149
Solid Waste Abatement Fund 487,272 Solid Waste Abatement Fund 487,272
Police Activit Fund 117,528 Police Activit Fund 117,528
S rin brook NC Fund 391,300 S rin brook NC Fund 379,038
Fund Balance (107,767) Fund Balance 0
TOTAL SPECIAL REVENUE FUNDS $1,253,482 $1,253,482
CAPTTAL PROJECTS FUND
Ca ital Im rovement Fund
General Ca ital Im rovement $ 16,872 General Ca ital Im rovement $ 108,000
Streets Ca ital Im rovement 790,477 Street Ca ital Im rovement 1,192,000
Parks Ca ital Im rovement 179,042 Parks Ca ital Im rovement 197,000
Fund Balance 510,609
TOTAL CAPTTAL PROJECTS FUND $1,497,000 $1,497,000
AGENCY FUND
Six Cities Watershed Fund
Taxes-Current Ad Valorem 6,200 Six Cities Watershed 6,200
TOTAL AGENCY FUND $6,200 $6,200
TOTAL ALL FUNDs $17,676,772 $17,676,772
PASSED AND ADOPTED BY THE CITY OF FRIDLEY THIS 15TH DAY OF DECEMBER,
2008.
SCOTT J. LUND - MAYOR
ATTEST:
DEBRA A. SKOGEN - CITY CLERK
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FRIDLEY
T�:
FROM:
SUBJECT:
DATE:
AGENDA ITEM
COUNCIL MEETING OF DECEMBER 15, 2008
WILLIAM W. BURNS, CITY MANAGER
RICHARD D. PRIBYL, FINANCE DIRECTOR
MILEAGE RATE CHANGE - 2009
December 11, 2008
The Internal Revenue Service has made the decision to decrease the mileage rate from $0.585
per mile to $0.55 per mile for 2009. The business mileage for the first half of 2008 was
$0.505 per mile and $0.585 per mile in the second hal£ The City chose to only change the
mileage rate once last year, therefore, the City's rate for 2008 stayed at $0.505 per mile.
The mileage rates for 2009 reflect generally higher transportation costs compared to a year
ago, but the rates also factor in the recent reversal of rising gasoline prices. While gasoline is
a significant factor in the mileage rate, other fixed and variable costs, such as depreciation
enter the calculation.
The attached resolution changes the City of Fridley's mileage rate to that of the current IRS
rate.
Based on past practice, it is my recommendation that we make this adjustment and present
this resolution to City Council for approval at the December 15, 2008, meeting.
RDP/me
Attachment
RESOLUTION NO. 2008
A RESOLUTION AUTHORIZING A CHANGE IN MILEAGE
REIMBURSEMENT RATES FOR THE 2009 CALENDAR YEAR
WHEREAS, there has been a mileage rate change in the Internal Revenue Service guidelines;
WHEREAS, the Internal Revenue Service has decreased the standard mileage rate to $0.55 cents per
mile for 2009; and
WHEREAS, an adjustment of the standard mileage rate for the City of Fridley is warranted;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fridley that the
following change be authorized for employees of the City of Fridley, effective January 1, 2009.
1. Standard Mileage Rate set to $0.55 per mile.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 15tn
DAY OF DECEMBER, 2008.
SCOTT J. LUND - MAYOR
ATTEST:
DEBRA A. SKOGEN - CITY CLERK
� AGENDA ITEM
� CITY COUNCIL MEETING OF DEC 15, 2008
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FRIULE7`
To: William Burns, City Manager
From: Paul Bolin, HRA Assistant Director
Date: December 11, 2008
Re: Approval of Special Legislation — 2008 2"d Tax Bill (Laws of MN 2008, Chapter 366,
Article 5, Section 23)
During its 2008 regular session, the Minnesota Legislature adopted two separate tax bills
containing special legislation to assist with the City of Fridley's Northstar Transit Station project.
The second tax bill clarified the number of parcels that could be included in the Northstar Transit
TIF District, clarified and expanded eligible expenses to include access to the Northstar
Commuter Rail tunnel, and gave us the ability to create TIF Districts through 2017 and pool
those funds at a higher percentage.
Special legislation requires Council action and filing with the Secretary of State prior to the Law
becoming effective. The Council took the appropriate action and filed the documentation with
the Secretary of State this past June. As pointed out in the attached memorandum from HRA
Attorney Casserly, an error was recently discovered in the Resolution approved by the Council
this past June. The approval references Section 24, where it should instead reference Section 23.
Staff recommends Council approve the attached resolution to correct this error. Upon approval
by the City Council, HRA Attorney Casserly will record the new resolution with the Secretary of
State.
�KRASS
MONROE
James R. Casserly
jcasserly@krassmonroe.com
Direct 952.885.1296
MEMORANDUM
To: City of Fridley
Attn: William Burns, City Manager, HRA Director
Attn: Scott Hickok, Community Development Director
Attn: Paui Bolin, HRA Assistant Executive Director
From: James R. Casserly, Esq.
Date: November 11, 2008
Re: Approval of Special Law — 2008 Second Tax Bill (Laws of Minnesota 2008,
Chapter 366, Article 5, Section 23)
Our File No. 9571-71
The above Special Law assisted the City of Fridley by providing special tax increment
financing rules for the Northstar Transit Station District. On June 9, 2008, the City
approved the Special Law and the appropriate certificate has been recorded with the
Secretary of State. In the process of looking at various financing options, we again
reviewed the Special Law, the Resolution and the Certificate. In our review, we noted
that there is an erroneous reference in the Resolution and the Certificate in which
Section 24 is cited. The correct reference should be to Laws 2008, Chapter 366, Article
5, Section 23.
The intention of the City Council is very clear in both the Resolution and the Certificate,
but to eliminate any confusion whatsoever, we thought it best to have the City Council
again adopt the attached Resolution with the revised section number. We have also
made the appropriate changes to the Certificate of Approval.
As with the previous Resolution and Certificate, please forward them to our office and
we will record them with the Secretary of State and secure a certificate of filing.
If there questions of any kinds regarding this action, please give us a call.
J RC/a I
Enclosures
KM: 4812-3184-3587, v. 1
8000 Norman Center Drive, Suite 1000
Minneapolis, Minnesota 55437- I 178
re� 952.885.5999 Fax 952.885.5969
www.krassmonroe.com
RESOLUTION NO.
A RESOLUTION APPROVING SPECIAL LEGISLATION
BE IT RESOLVED by the City Council (the "Council") of the City of Fridley, Minnesota
(the "City"), as follows:
WHEREAS, Laws of Minnesota 2008, Chapter 366, Article 5, Section 23 (the
"Special Law") was enacted by the Legislature of the State of Minnesota and signed into
law by Governor Timothy Pawlenty on May 29, 2008 and relates to special rules
governing the use of tax increment financing by the City within a designated area of the
City.
WHEREAS, the Special Law is effective upon approval by the governing body of
the City and upon compliance by the City with Minnesota Statutes, Section 645.021,
subdivision 3.
WHEREAS, Minnesota Statutes, Section 645.021, subdivision 3 requires that upon
approval of the Special Law by the City, that the City file a certificate of approval, as
proscribed by the attorney general, and a copy of its resolution of approval with the
Secretary of State prior to the first day of the next regular session of the Legislature.
WHEREAS, the first day of the next regular session of the Legislature is Tuesday,
January 6, 2009.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City as follows:
1. The Special Law is hereby approved.
2. The City Clerk is hereby directed to file a certificate of approval and a certified copy
of the City's resolution of approval with the Secretary of State prior to the first day of
the next regular session of the Legislature.
3. The Special Law is effective upon compliance with the above requirements.
Page 2 - Resolution No.
PASSED AND ADOPTED BY THE COUNCIL OF THE CITY THIS DAY OF
, 2008.
ATTEST:
DEBRA SKOGEN - CITY CLERK
SCOTT LUND - MAYOR
CERTIFICATION
I, Debra Skogen, the duly qualified Clerk of the City of Fridley, County of Anoka,
Minnesota, hereby certify that the foregoing is a true and correct copy of Resolution No.
passed by the City Council on the day of , 2008.
DEBRA SKOGEN - CITY CLERK
KM: 4816-8210-6882, v. 1
CERTIFTCATE OF APPROVAL OF SPECIAL LAW
BY GOVERNING BODY
(Pursuant to Minnesota Statutes, 645.021)
STATE OF MINNESOTA
County of Anoka
TO THE SECRETARY OF STATE OF MINNESOTA:
PLEASE TAKE NOTICE, That the undersigned chief clerical officer of the City of
Fridley, Minnesota DOES HEREBY CERTIFY, that in compliance with the provisions of Laws
of Minnesota 2003, Chapter 21, Article 10, Section 10 requiring approval by a majority* of the
governing body of said local governmental unit before it becomes effective, the City Council at a
meeting duly held on the _ day of , 2008, by resolution did
approve said Laws of Minnesota 2008, Chapter 366, Article 5, Section 23 by a majority* vote of
all of the members thereof (Ayes _; Noes _; Absent or not voting _) and the following
additional steps, if any required by statute or charter were taken:
A copy of the City resolution is hereto annexed and made a part of this certificate by reference.
Signed
(Official designation of officer)
(77iis form prescribed by the Attomey General and fumished by the Secretary of State as required in Minnesota Statutes 645.021.)
* If extraordinary majority is required by the special law, insert fraction or percentage here.
KM: 4817-8277-0178, v. l
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CITY COUNCIL MEETING OF DECEMBER 15, 2008
William W. Burns, City Manager
James Kosluchar, Public Works Directoi
Layne Otteson, Assistant Public Works
December 15, 2008
SUBJECT: Initiate 2009 Street Rehabilitation Project No. ST2009-1
' 1: 1
The attached resolution directs staff to prepare a feasibility report and initiate the design and
plan preparation for the proposed 2009 Rehabilitation Project No. ST. 2009 —1. The feasibility
report will address two general areas.
The first area is Un�versity Service Drive West (including Commerce Circle East) from 69tn
Place to 85th Avenue. The length of pavement reconstruction is estimated at 2.4 miles and
includes approximately 0.5 miles of water main replacement. All streets have concrete curbing
in place and the work will likely be a combination of mill / overlay and water main replacement.
Staff plans to include evaluation of intersections along the length of these segments as well.
Please refer to the attached Figure A.
The second area is the Sylvan Hills neighborhood. This area is bordered by University Avenue
on the east, BNSF railroad tracks on the west, 615t Avenue on the south, and Mississippi
Street on the north. The length of the work in this area is approximately 2.1 miles. All existing
curbing is concrete and will likely require a mill and overlay along with miscellaneous utility
repairs. Please refer to the attached Figure B.
The figures show for each roadway segment the year of previous pavement reconstruction, as
well as the Pavement Condition Rating which indicates pavement structural and ride quality on
a scale of 5(worst) to 35 (best).
We have planned in our budget process for construction of the University Service Drive only.
The CIP budgets were prepared during the extremely high oil prices experienced in 2008. As
oil has declined in price to approximately 1/3 of the high for 2008, and because its price has a
major impact on project costs, we may be able to accomplish some of the work in Sylvan Hills.
This, of course will depend on what future fluctuations we see in oil pricing.
Preparation of the feasibility report will allow staff to determine what construction can take
place within the CIP budget. The feasibility report will provide a recommendation to the City
Council on what construction should take place in 2009. If the Sylvan Hills is excluded, the
work in preparation of the feasibility report can be used for preparation of a future project.
The attached resolution orders the preparation of a feasibility report and preliminary plans for
the project. The scope of the proposed report will address pavement, water main, sanitary
sewer, and storm sewer replacement.
Recommend the City Council adopt the attached resolution for the 2009 Street Rehabilitation
Project No. ST. 2009-1.
JPK/Iro
Attachments
RESOLUTION NO. 2008 -
A RESnLUTION OIZDERING PREPARATION nF A PRELIMINARY REPORT AND
PRELIMINARY PLANS AND SPF,CIFICATIONS FnR STREET REHABILITATION
PROJECT NO. ST. 2009-1
NnW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Fridley as follows:
l. That it appears in the interests of the City and of the property owners affected that there be
constructed certain improvements to-wit:
Street improvements, including milling, bit�uninous asphalt overlay, and water main replacement
located as follows:
University Avenue West Service Drive 69`�' Place to 710Q block
Commerce Circle East 71 QO blocic to 73`a Avenue
tJniversity Avenue West Service Drive 73`d Avenue to 85�' Avenue
69u' Avenue Univ Ave W Serv Dr to TH 47
300' east and west of intersections ori
tlniversity Avenue West Service Drive / Commerce Circle East
69�' Place to 85�' Avenue
Comet Lane
Jupiter I�rive
Mercury Drive
Rainbow Drive
Satellite L,ane
Star Lane
Starlite Circle
Starlite Boulevard
Sunrise Drive
Sylvan Lane
Trinity Prive
University Avenue West Service Drive
"I�rinity llrive to Jupiter llrive
Rainbow Drive to Sylvan Drive
Satellite Lane to iJniv. Ave. W. Service Dr.
615f Avenue to LJniv. Ave. W. Service Dr.
Starlite Boulevard to Mercury Drive
61St Avenue t� IJniv. Ave. W. Service Dr.
Satellite Lane to north terminus
61 St Avenue to Sylvan Lane
61St Avenue to Univ. Ave. W. Service Dr.
Starlite B�ulevard to Jupiter Drive
61 S` Avenue to Starlite Blvd
Star L,ane to Satellite I,ane
That the work involved in said improvements listed above shall hereafter be designated as:
STIZEET REHABILITATION PROJECT NO. ST 2009-1
2. That the Public Warks Director, James P. K.osluchar, City Hall, Fridley, MN, is hereby authorized
and directed to draw the preliminary plans and specificatians and to tabulate the results �f his
estimates of the costs of completion and all fees and expenses incurred (or to be incurred) in
preliminary report of his findirig stating therein whether said improvements are feasible and whether
they can best be made as praposed, or in connection with some �ther improvements (and the
estimated costs as recommended), including also a description of the lands or area as may receive
benefits there fr�m and as may be proposed to be assessed.
3. That said preliminary report of the Public Worlc Director shall be fizrnished to the City C�uncil.
PASSED AND ADOPTED BY THE CITY COtTNCIL OF THE CITY OF FRIDLEY THIS 15�' DAY OF
D�CEMBER, 2008.
SCOTT J. I,I.JND - MAYOR
ATTEST:
DEBRA A. SKOGEN - CITY CL,ERK
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� AGENDA ITEM
� CITY COUNCIL MEETING OF DECEMBER 15, 2008
�ffY �F
FRIDLEY
To: William W. Burns, City Manager
From: John Crelly, Assistant Chief
Date: December 12, 2008
Re: City Prosecutor Contract 2009 - 2011
The contract for prosecution services with Carl J. Newquist and his firm, Newquist & Herrick Law Offices,
P.C., expires December 31, 2008. This is the conclusion of a one-year contract. During the past year, staff
has conducted a process to obtain the best prosecution services possible for the City at a fair, market-
supported price. This process is now complete. Staff recommends continuing our relationship with Carl J.
Newquist and is pleased to present a three-year contract with Mr. Newquist and his firm which includes
savings in cost and staff time for the City.
Mr. Newquist and his firm have provided prosecutorial services to the City of Fridley for 31 years.
Following a survey of prosecutorial contracts by the City of Elk River, it was learned that the costs of our
prosecution contract were significantly greater than the other cities in the survey. Based upon that
information, staff conducted a review of our contract to determine if our costs were appropriate to our
prosecution workload. Annual totals paid to Newquist & Herrick ranged from $226,430 in 2003 to
$283,870 in 2007 with a peak year of $316,957 in 2006. Staff concluded that the City of Fridley does
possess characteristics indicating increased prosecution work and expense is reasonable. For instance,
Fridley has historically been ranked in the top 5 metro area communities by crime rate with a
correspondingly high number of arrests. In addition, we prosecute DUI and Domestic Assault cases
aggressively, both of which are time and labor intensive for our prosecutor. And, the public defender
assigned to Fridley late in 2005 was very aggressive in his request for data and discovery adding an
estimated $3,000 -$5,000 per month to our prosecutorial expense. Also, at that same time we conducted
zero-tolerance enforcement efforts at Sha� and significantly increased pawn regulation and enforcement,
both of which added significant amounts of work for the prosecutor.
All the above considered, to insure that the City of Fridley was receiving the most qualified prosecutorial
services at a fair market price it was decided that we would open our 2009 — 2011 contract for new
proposals. Staff completed that process this fall.
The process included a review of other cities prosecution contracts and recent selection processes. From
those reviews, staff created a Request for Proposal and Qualifications (RFP&Q) to solicit proposals of
services and costs from interested attorneys and firms. The City received 10 RFP&Q's in response to our
advertisements (one additional proposal was received after the published deadline and was therefore not
considered). Staff then evaluated each proposal in a qualitative review utilizing a matrix that included such
dimensions as experience in prosecution, size and capacity of the law firm, and overall compatibility with
our law enforcement views and issues. This process showed three firms possessed high levels of the
dimensions valued in a prosecutor for the City. Four staff inembers participated in this evaluation.
City Prosecutor Contract 2009-2011
December 12, 2008
Page 2
While the qualitative evaluation was underway, yet another staff inember completed a fee analysis. The
candidate firms presented fees either in terms of hourly rates or monthly or annual retainers. Some firms
presented both options. The analysis was required to estimate the cost of fees that would be charged to the
City over and above either hourly rates or retainer amounts. These fees included traveUmileage, copy fees,
court filing fees, appellate court fees, and others. Proposed retainers ranged from a low of $153,000 + fees
to a high of $300,000 + fees. It is important to note that each firm specified billable fees differently, and in
some cases substantially different from other firms. Proposed hourly rates ranged from $95 -$120 for that
billing method.
Staff then focused on the three firms that the qualitative analysis showed to be the best positioned to serve
as the City of Fridley prosecutor. The top three firms and their proposed annual retainers were, in no
particular order:
Municipal Legal Services $275,000 + fees (2009)
Sweeney, Borer & Sweeney $276,000 + fees (2009)
Newquist & Herrick $272,850 + fees (2009)
Staff next completed a panel interview of the top three candidate firms. This panel included City Manager
Burns, Public Safety Director Abbott, Police Captain Rewitzer, Police Lt. Monsrud, and Ms. Torrie
Schneider, Associate Attorney/Prosecutor for the City of Bloomington. Each firm was presented with more
than 20 questions by the panel. Following this interview process, two candidate firms stood out as highly
qualified: Sweeney, Borer & Sweeney and Newquist & Herrick.
The choice to recommend Newquist & Herrick is made based upon their finishing within the top 2 of 11
candidate firms, coupled with their proposed retainer and fees being the lower of the top three firms (based
upon our history with Newquist & Herrick, we estimate fees at approximately $10,000 per year), and the
long and favorable history Carl Newquist has serving as the Fridley City Prosecutor.
During subsequent contract negotiations with Carl Newquist, his office agreed to assume several duties
related to case preparation that have previously been completed by police staff (copying photos and videos,
requesting criminal history data, etc.). These duties were identified as being the primary responsibility of
prosecutors' offices during our review of the proposals submitted by other candidate firms. We estimate a
staff time savings of 2— 4 hours per week based upon these savings.
Finally, the conversion to a retainer system allows the prosecutor's office to pass along cost savings to the
City. The 2009 budget includes $320,000 for prosecution services and our estimate under the proposed
contract is $285,000. Overall, staff estimated potential cost savings up to $35,000 per year under the new
terms.
Staff has prepared a contract for signatures reflecting the terms and conditions required in our RFP&Q
process and as proposed by Carl Newquist. The contract increases the annual retainer by 3% for both the
2"a and 3rd years of the term.
Staff recommends the City enter into a contract for prosecution services with Carl J. Newquist and
Newquist & Herrick Law Offices for 2009 — 2011.
AGREEMENT FOR LEGAL SERVICES
BETWEEN THE CITY OF FRIDLEY
AND NEWQUIST & HERRICK LAW OFFICES, P.C.
AND CARL J. NEWQUIST
1. Citv Prosecutor Appointment: Carl J. Newquist and his law office, Newquist &
Herrick Law Offices, P.C., 6401 University Avenue N.E., Fridley, Minnesota, 55432, are
appointed City Prosecutor for the City of Fridley.
2. Term of A�reement: Thirty-six (36) months from and after January 1, 2009, to
terminate on December 31, 2011, unless otherwise extended by mutual agreement of the
parties hereto.
3. Duties and Responsibilities of the Citv Prosecutor:
A. Proximity being of the essence hereof, the City Prosecutor shall maintain an
office in the City of Fridley. The City Manager may approve an exception to this
requirement if the City Prosecutor presents an acceptable arrangement to the City
providing for convenient and timely access to the Prosecutor by City Staff.
B. Represent the City in all criminal proceedings and cases wherein the City is a
party, has jurisdiction, and/or has an identifiable interest therein, except those
cases arising under the City's zoning, housing, rental housing and building codes.
C. Prepare files for court, including assembling witness lists, preparing and serving
subpoenas, copying statutes or ordinances for court trials, etc. Request certified
documents, such as driver's records, motor vehicle records, prior convictions,
orders for protection, bank records, ordinances and other information required for
court directly from the custodians of those records through customary and
accepted means. Use of digital data access, retrieval, and transfer methods are
encouraged.
D. Prepare copies of documents, photographs, video files, and other discoverable
items as requested or required for provision to defendants and/or their attorneys.
The Prosecutor may charge the requesting person or entity a fee for such copies
where not prohibited by law.
E. Prepare letters and notices associated with various court trials. These include
letters to victims, omnibus hearing notifications, and notices of changes in time,
date or place of hearings.
F. Maintain records, including the court calendar, records of formal complaint
requests, records regarding the criminal history requests from the BCA, records of
officer vacation schedules and court assignment schedules of the prosecutor.
G. Telephone conferences and maintaining correspondence with various agencies
including law enforcement agencies, courts, Minnesota correctional facilities,
victim/witnesses, defendants/defense attorneys, social workers, psychiatrists,
victim advocate representatives, hospitals, banks, insurance companies, etc.
Research statutes and/or ordinances for court cases, formal complaints, or as
requested by the Fridley Police Department or the City of Fridley.
H. Handle requests for disposition of detainer.
L Maintain active files.
J. Advise Council, City staff, and the Police Department of legal questions and
issues that relate to official City business.
K. Advise and attend education and training programs for City staff and the Police
Department as requested by the City Manager and/or the Director of Public
Safety.
L. Advise and attend such Council meetings and meetings of City commissions and
committees as the City Manager and/or Mayor may direct.
M Prepare activity reports, billing information and reports on status of City litigation
as the City Manager may direct.
N. Defend City employees, when applicable, in suits and claims arising from the
performance of official duties as the City Manager may direct.
4. Conflict of Interest: The City Prosecutor shall not represent any individual or party in
any civil or criminal matter against the City of Fridley.
5. Compensation:
A. The City Prosecutor shall be compensated on an annual retainer basis, payable in
12 equal monthly installments throughout the term of this agreement. The annual
retainers are agreed to be the following amounts:
2009: $272,850.00
2010: $281,036.00
2011: $289,467.00
B. The annual retainer includes all expenses and fees paid or incurred on behalf of
the City by the City Prosecutor including travel, photocopying and printing, faxes,
legal research, and vehicle forfeiture casework The City Prosecutor shall be
reimbursed the costs for subpoena service.. All other expenses and costs of
overhead such as dues, subscriptions, licenses, insurance, secretarial services, etc.,
2
associated with the performance of legal services shall be the responsibility of the
City Prosecutor.
C. The annual retainer does not include the fees and expenses associated with
necessary appearances before the Court of Appeals or the Supreme Court. The
hourly rate for these cases will be $95.00
6. Assi�nment of Services and A�reement: The City Prosecutor shall not assign an
interest or obligation of this agreement without the prior written consent of the City.
7. Affirmative Action: Because the City requires and follows a policy of Affirmative
Action and will not tolerate discriminatory acts, the City Prosecutor shall not discriminate
against any person on the basis of age, sex, religious beliefs, political affiliations, or other
protected classifications under federal, state, or local laws or regulations.
8. Work Product: All ordinances, resolutions, correspondence and other documents or
materials drafted for the City by the City Prosecutor shall, upon their completion, become
the property of the City.
9. Insurance: The City Prosecutor agrees to maintain a valid policy of Professional
Liability Insurance for the duration of this agreement. The value of the policy shall not
be less than Five Hundred Thousand and 00/100 Dollars ($500,000).
10. Severabilitv: The City or City Prosecutor may sever the terms of this contract upon
sixty (60) days written notice. Failure by the City or the City Prosecutor to comply with
any of the terms of this contract shall be grounds for terminating this agreement, as shall
be the City's dissatisfaction with the City Prosecutor's performance under the agreement.
Upon termination of this contract, the City shall only be responsible for the monthly fee
and any additional billings accrued as of the date of termination.
Agreed and entered into this day of , 2008.
Carl J. Newquist
NEWQUIST & HERRICK LAW OFFICES, P.C.
I�
Carl J. Newquist, CEO
CITY OF FRIDLEY
I�
I�
Scott J. Lund, Mayor
William W. Burns, City Manager
� AGENDA ITEM
� COUNCIL MEETING OF DECEMBER 15, 2008
�ffY �F
FRIDLEY
CLAIMS
139�37 - 139944
� AGENDA ITEM
� CITY COUNCIL MEETING OF DECEMBER 15, 2008
�°F LICENSES
FRIDLEIF
� AGENDA ITEM
� CITY COUNCIL MEETING OF DECEMBER 15, 2008
��F LICENSES
FRIDLEY
Contractor T e A licant A roved B
Air Mechanical, Inc Heatin Bett Hara at Ron Julkowski, CBO
Diversified Construction Commercial or Jerry Walsh Ron Julkowski, CBO
S ecialt
Si ns b RSG Inc. Si n Erector James Johnson Ron Julkowski, CBO
Steiner Plumbing & Electric Commercial or Paul Steiner Ron Julkowski, CBO
S ecialt
�
�
�ffY �F
FRIDLEY
AGENDA ITEM
CITY COUNCIL MEETING OF DECEMBER 15, 2008
ESTI MATES
Midwest Asphalt Corp.
5929 Baker Road
Suite 420
Minnetonka, MN 55345
2008 Street Improvement Proj ect No. ST. 2008 — 1
EstimateNo. 7 .............................................................................
Standard Sidewalk
10841 Mankato Street N.E.
Blaine, NIN 55434
2008 Miscellaneous Concrete Repair
EstimateNo. 5 .............................................................................
$ 288,185.01
$ 7,885.01
�
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CfTY �F
FRI�LEY
Date:
��
AGENDA ITEM
CITY COUNCIL MEETING OF
DECEMBER 15, 2008
December 10, 2008
William Burns, City Manager
From: Scott Hickok, Community Development Director
Julie Jones, Planning Manager
Rachel Harris, Environmental Planner
Subject: Resolution for Solid Waste Abatement Program (SWAP) Fee Increase
Background
Annually, staff reviews the curbside recycling program revenues and expenses for the purpose of
setting an appropriate recycling service fee on City utility bills for the upcoming year.
Revenues are generated from (1) the SWAP fee on the utility bill; (2) State SCORE grant funds for
qualified recycling expenses; and (3) the sale of curbside recyclables.
The SWAP fund obtains its primary source of revenue from fees on utility bills. Raising the
recycling program fee by 2.6% in 2009 will increase the quarterly fee from $6.61 to $6.78 per
household. This results in a$.68 increase per year for residents.
Expenses include (1) the curbside recycling service, (2) recycling drop-off services, (3) personnel,
and (4) public education.
The largest SWAP fund expense comes from the curbside recycling contract. Fridley's five year
contract with BFUAllied Waste continues through March 30, 2010. The contract costs will
increase by 2% in 2009. From January — March, the City will pay a quarterly rate of $7.65.
Thereafter, the rate paid will be $7.80 per household.
Revenue from the County SCORE grant and sale of curbside recyclables are not guaranteed. Staff
believes it would be wise fiscal management to raise the SWAP fee to the allowable maximum of
2.6 percent.
Recommendation
Staff recommends that the City Council adopt the attached resolution, directing staff to increase the
SWAP recycling service fee by 2.6 percent to $6.78 per quarter effective with the first utility billing
of 2009.
I� . .
1. .
RESOLUTION NO. 2009-
A RESOLUTION APPROVING RECYCLING SERVICE FEES
WHEREAS, State Statute 115A.552, Subdivision 2, requires the City of Fridley to
provide, at minimum, curbside recycling services; and
WHEREAS, the City of Fridley has chosen to provide Fridley residents with recycling
services, including curbside recycling; and
WHEREAS, the State provides only partial funding to subsidize the City's recycling
efforts so that the remaining costs must be paid by the user of such services;
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Fridley that
the per dwelling unit service fee charged to all single through 12-unit residential
buildings serviced by the City's residential recycling service contract in the City be set at
$6.78 per dwelling per quarter effective with the first utility billing of 2009.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS
15T" DAY OF DECEMBER 2008.
SCOTT J. LUND - MAYOR
ATTEST:
DEBRA A. SKOGEN — CITY CLERK
�
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FRIDLEY
7'0:
FROM:
SUBJECT:
AGENDA ITEM
COUNCIL MEETING OF DECEMBER 15, 2008
WILLIAM W. BURNS, CITYMANAGER
RICHARD D. PRIBYL, FINANCE DIRECTOR
SEWER STRUCTUREAND RATE INCREASE FOR 2009
Date: December 11, 2008
As part of the budget work done this year, Staff determined a need to review the rate structures for both water and sewer.
This type of study had notbeen done since the study that was completed by Springsted, Inc. in 1991. This project, as you
know, started in the early part of this past summer with the hiring of Progressive Consulting Engineers, Inc.
The sanitaty sewer component of the rate study tended to be less complicated than the water rate study due to the lack of
new legislation placing requirements on these types of structures. Since the sewer fund's main expense component is the
disposal charge that the Metropolitan Council Environmental Services charges us for disposal of sewage into the "Pigs
Eye" plant, the modeling tended to be a little easier for this utility.
The testing of rate structures was much more limited in this utility, since the billing is based on gallons of water sold and
the related disposal costs. Staff identified the need once again for sewer to have a fixed component and also a volume
based component. Since there was no need to create a rate or structure on this activity that tends to place increased costs
on higher flows, the options for this structure was limited. In this case, we really only had one type of structure to
evaluate and tl�at was to use the fixed component as created through the study provided by Progressive Engineers Inc.
Again, the goal of the sewer rate structure and rate was to provide the following elements:
• Sufficient revenue to support the annual operaring costs.
• Additional revenue needed to support the Capital Improvements.
• Adequate cash flow needs.
• Limiring the amount of cost to the customer
The following is the recommended rate structure for the Sewer Fund for 2009. The fixed charge would be assessed on a
quarterly basis and would account for the administrative cl�arges associated with the billing and maintenance of customer
informarion. The volume rate would be used based on the amount of gallons a customer would consume during the
quarter. The winter quarter consumption would be the basis for the following 4 quarters of sewer charges. This process
would remove the impact that lawn watering has on any of the other 4 quarters.
Prouertv Class Consumution Basis Fixed Charge Volume Charge
Single Family Winter Quarter Water Usage $7.12 $3.01/1,000 gallons
Commercial Current Quarter Water Usage $7.12 $3.01/1,000 gallons
Non-Profit Current Quarter Water Usage $7.12 $3.01/1,000 gallons
Mulriple Dwellings Winter Quarter Water Usage $7.12 $3.01/1,000 gallons
Manufactured Home Park Winter Quarter Water Usage $7.12 $3.01/1,000 gallons
Staff has incorporated this structure and revenue into the 2009 Budget that has been presented to Council.
Staff is recommending CounciP s consideration of this sewer rate structure change implementation beginning with the first
billing in 2009.
Staff is recommending Council make a motion to approve the attached resolution.
RESOLUTION NO. 2008-
RESOLUTION PROVIDING FOR SEWER STRUCTURE AND RATE CHANGE
WHEREAS, Section 402.13 of the City Code provides that the City Council shall have the authority to set
sewer rates by resolution, and
WHEREAS, the City conducted a study which identified a structure that included both a fixed and volume
based component that provides sufficient revenues to cover the cost of transmission of liquid waste water
from homes and businesses within the City of Fridley to the regional treatment plant, and
WHEREAS, the study identified rates that are sufficient to provide the necessary revenues to cover the
disposal charges incurred by being a part of the metropolitan wide sanitary sewer disposal system that is
managed by Metropolitan Council Environmental Services, and
WHEREAS, it is necessary to provide an increase of revenue in order to replenish the cash balance to provide
for adequate cash flow and avoid future short term borrowing, and
NOW THEREFORE, be it resolved, that the following sewer rate schedule for all customers shall be as
follows:
Prouertv Class Consumution Basis
Single Family Winter Quarter Water Usage
Commercial Current Quarter Water Usage
Non-Profit Current Quarter Water Usage
Mulriple Dwellings Winter Quarter Water Usage
Manufactured Home Park Winter Quarter Water Usage
Fixed Charge
$7.12
$7.12
$7.12
$7.12
$7.12
Volume Charge
$3.01/1,000 gallons
$3.01/1,000 gallons
$3.01/1,000 gallons
$3.01/1,000 gallons
$3.01/1,000 gallons
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 15th DAY OF
DECEMBER, 2008.
SCOTT J. LUND - MAYOR
ATTEST:
DEBRA A. SKOGEN - CITY CLERK
�
�
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FRIDLEY
i'�:
FROM.�
AGENDA ITEM
COUNCIL MEETING OF DECEMBER 15, 2008
WILLIAM W. BURNS, CITYMANAGER
RICHARD D. PRIBYL, FINANCE DIRECTOR
SUBJECT.• STORM WATER RATE INCREASE FOR 2009
Date: December 11, 2008
As part of the budget work done this year, we indicated that the Storm Water Fund would require an
increase for 2009. We are recommending an increase for 2009.
We are recommending that the REF factor be increased to $10.35 per quarter. You might recall that
a residential lot was defined to be 1/3 of an REF acre. The quarterly cost for storm water would then
be $3.45 per quarter for a residential lot. This increase would be effective with the first billing in
January 2009.
Staff is recommending this storm water rate change for 2009.
RDP/me
Attachment
RESOLUTION NO. 2008-
RESOLUTION PROVIDING FOR A STORM
WATER DRAINAGE RATE CHANGE
WHEREAS, Section 402.13 of the City Code provides that the City Council shall have the authority
to set the storm water drainage fee by resolution, and
Whereas, the expenses associated with the maintenance of the storm water system have increased,
and
WHEREAS, the City has indicated a desire to provide for proper maintenance and improvements to
the storm water drainage system, and
WHEREAS, both the maintenance and improvements have been outlined in the City's Budget and
Capital Improvement Program, and
WHEREAS, the new rate is to be effective with the January, 2009 billing.
NOW THEREFORE, be it resolved, that the following storm water drainage rate for all customers
shall be $10.35 per quarter per REF-acre.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 15th
DAY OF DECEMBER, 2008.
SCOTT J. LUND - MAYOR
ATTEST:
DEBRA A. SKOGEN - CITY CLERK
�
�
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FRIDLEY
i'�:
FROM.�
AGENDA ITEM
COUNCIL MEETING OF DECEMBER 15, 2008
WILLIAM W. BURNS, CITYMANAGER
RICHARD D. PRIBYL, FINANCE DIRECTOR
SUBJECT.• WATER RATE INCREASE FOR 2009
Date: December 11, 2008
As part of the budget work done this year, Staff determined a need to review the rate structures for
both water and sewer. This type of study has not been done since the study that was completed by
Springsted, Inc. in 1991. This project, as you know, started in the early part of this past summer with
the hiring of Progressive Consulting Engineers, Inc. Their task was to evaluate three types of rate
structures for water sales. The first type of structure called the `Base Extra Capacity" method, which
was to serve as a point of reference and establish a rate which assigns cost by customer classes. The
other structures were a flat rate and a volume based rate structure. The fundamental component of
each of these structures was to include a fixed component and a volume based component.
As staff got further into the study, we became aware of the newly enacted legislation that required
conservation rate structures be put in place in the near future. This legislation requires that public
water suppliers that supply more than 1,000 people have a conservation rate structure in place by
January 1, 2010. Staff felt this was the opportunity to explore further the vast number of rate
structures that could be defined as conservation based and get the work done now. Staff
communicated with the Department of Natural Resources to determine what types of structures
would pass the "test" of conservation based.
Since the testing of numerous other rate structures would have caused an expansion of the rate study,
Staff decided to take the "modeling" that had been done by Progressive Consulting Engineers, Inc.
and expand it at the Staff level. The information was then used by Staff to further explore a variety
of "block rate structures" to determine which rate structure provided the necessary revenue stream
and also satisfied the Department of Natural Resources in regards to "conservation based rate
structure". Staff adapted the modeling and ran 10 to 15 different block structures with various rates
through this modeling tool and settled on the structure shown on the following page.
This structure created a residential and a commercial rate structure differential. Staff ran the volumes
of its customers and found that the residential customers were clustered in a fairly tight band within
the 0 to 60,000 gallon band. Whereas, the commercial side of the water utility sold volumes to its
customers that ranged from zero, to well in excess of a million gallons of water on a quarterly basis.
The challenge of the modeling of the structures was to provide the following elements:
• Sufficient revenue to support the annual operating costs.
• Additional revenue needed to support the Capital Improvements.
• Adequate cash flow needs.
• Fairness to the customers by attempting to limit the amount of increase by volumes within the
different volume bands.
The following is the recommended rate structure. The fixed charge would be assessed on a quarterly
basis and would account for the administrative charges associated with the billing and maintenance of
customer information. The volume rate would be used based on the amount of gallons a customer
would consume during the quarter.
2009 Proposed Rate Structure
Residential
Actual Consumption (Quarterly 0-20,000)
Actual Consumption (Quarterly 20,001-40,000)
Actual Consumption (Quarterly 40,001-60,000)
Actual Consumption (Quarterly 60,001-unlimited)
Commercial '
Actual Consumption (Quarterly 0-40,000)
Actual Consumption (Quarterly 40,001-250,000)
Actual Consumption (Quarterly 250,001-500,000)
Actual Consumption (Quarterly 500,001-1,000,000)
Actual Consumption (Quarterly 1,000,001-unlimited)
Fixed Volume Rate
Charge By 1,000 Gallons
9.50 1.08'
1.�9'
"1.30 ����
1.41 '
9.50 1.30'
1.46 '
1.62 '
1.78 '
1.94'
Staff has incorporated this structure and revenue into the 2009 Budget that has been presented to
Council.
Staff is recommending Council's consideration of the water rate structure change implementation
beginning with the first billing in 2009.
Staff is recommending Council make a motion to approve the attached resolution.
RDP/me
Attachment
RESOLUTION NO. 2008-
RESOLUTION PROVIDING FOR WATER STRUCTURE AND RATE CHANGE
WHEREAS, Secrion 402.13 of the City Code provides that the City Council shall have the authority to set water rates by
resolution, and
WHEREAS, the Minnesota Statutes, section 103G.291, was amended in 2008 requiring that public water suppliers
serving more than 1,000 people adopt water rate structures that encourage conseivarion by January 1, 2010, and
WHEREAS, the City Council has studied its current water rate structure and finds that it is not in compliance with the
newly enacted changes to Miiiiiesota Statutes, section 103G.291, and
WHEREAS, the City conducted a study of various rate structures in order to be compliant with a conservation rate
structure and conrinue to provide sufficient revenues to cover the cost of delivering water to homes and businesses within
the City of Fridley, and
WHEREAS, the study identified a number of continuing major capital improvements that are necessary for the cost
effective delivery of water to those homes and businesses served by the system, and
WHEREAS, the revenues provided through a new rate structure must be sufficient to provide for the increased cost of
these capital improvements, and
WHEREAS, it is necessary to provide an increase of revenue in order to replenish the cash balance to provide for
adequate cash flow and avoid future short term borrowing, and
WHEREAS, the following conservation based rate structure and rates are to be effecrive with the January, 2009 billing.
NOW THEREFORE, be it resolved, that the following water rate schedule for all customers shall be as follows:
All Customers Fixed Charge $9.50/Quarter
WATER RATE SCHEDULE —RESIDENTIAL
(Includes single family homes, multiple dwellings, non profits, and manufactured home parks)
0 — 20,000 gallons
20,001— 40,000 gallons
40,001— 60,000 gallons
60,001 — Unlimited gallons
$1.08/1,000 gallons
$1.19/1,000 gallons
$1.30/1,000 gallons
$1.41/1,000 gallons
WATER RATE SCHEDULE — COMMERCIAL
0 — 40,000 gallons
40,001 — 250,000 gallons
250,001 — 500,000 gallons
500,001— 1,000,000 gallons
1,000,001— Unlimited
$1.30/1,000 gallons
$1.46/1,000 gallons
$1.62/1,000 gallons
$1.78/1,000 gallons
$1.94/1,000 gallons
PASSED AND ADOPTED BY THE CITY COUNCII, OF THE CITY OF FRIDLEY THIS 15th DAY OF DECEMBER,
2008.
SCOTT J. LUND - MAYOR
ATTEST:
DEBRA A. SKOGEN - CITY CLERK
� AGENDA ITEM
� CITY COUNCIL MEETING OF DECEMBER 15, 2008
�ffY �F
FRIDLEY
INFORMAL STATUS REPORTS