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CCM 10/28/2013 CITY COUNCIL MEETING CITY OF FRIDLEY OCTOBER 28, 2013 The City Council meeting for the City of Fridley was called to order by Mayor Lund at 7:00 p.m. ROLL CALL: MEMBERS PRESENT: Mayor Lund Councilmember-at-Large Barnette Councilmember Saefke Councilmember Varichak Councilmember Bolkcom OTHERS PRESENT: Wally Wysopal, City Manager Darcy Erickson, City Attorney Darin Nelson, Finance Director/Treasurer APPROVAL OF PROPOSED CONSENT AGENDA: APPROVAL OF MINUTES: 1.City Council Meeting of October 14, 2013. Councilmember Saefke noted on page 10, second paragraph, second to the last sentence it permitting should read “is not permeating …” th Councilmember Bolkcom noted on page 9, 8 paragraph, last sentence starting with “A “One driveway will need to be modified determination…” should be deleted and replaced with before the full build out.” And the last paragraph on page 9, second sentence should read Anoka County “ Highway Department” Councilmember Varichak noted item number 17 there was no second to the motion. It should Seconded by CouncilmemberSaefke. read APPROVED AS AMENDED. NEW BUSINESS: 2.Receive the Minutes from the Planning Commission Meeting of October 16, 2013. Councilmember Saefke noted on page three, paragraph 12, the first sentence should read skids “engine kids …” RECEIVED. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 28, 2013 PAGE 2 3.Special Use Permit Request, SP #13-12, by Reviva, Inc., to Allow Limited Outdoor Storage, Generally Located at 5130 Main Street N.E.; and Resolution Approving Special Use Permit, SP #13-12, for Reviva on Behalf of Dealers Manufacturing Company, the Property Owner for the Property Located at 5130 Main Street N.E. (Ward 3). APPROVED SPECIAL USE PERMIT, SP #13-12, AND ADOPTED RESOLUTION NO. 2013-62. 4.Resolution Approving and Authorizing Execution of a Metropolitan Livable Communities Act Grant Agreement with Metropolitan Council for the Completion of a Northstar TIF Master Plan (Ward 3). APPROVED RESOLUTION NO. 2013-63. 5.Approve the 2014 Development Review Schedule for the Planning Commission and the Appeals Commission. APPROVED. 6.Resolution Adopting Assessment Roll for the 2013 Tree Removal/Lateral Repair. APPROVED RESOLUTION NO. 2013-64. 7.Resolution Certifying Certain Delinquent Utility Services to the County for Collection with the 2013 Property Taxes. APPROVED RESOLUTION NO. 2013-65. 8.Resolution to Approve a Cooperative Construction Agreement with the Minnesota Department of Transportation to Enable Installation and Maintenance of Mississippi River Trail (MRT) Signage. APPROVED RESOLUTION NO. 2013-66. 9.Claims (161025 – 161220). APPROVED THE CLAIMS AS SUBMITTED AND AS ON FILE. 10.Licenses (Business, Contractor and Rental). APPROVED THE LICENSES AS SUBMITTED AND AS ON FILE. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 28, 2013 PAGE 3 APPROVAL OF CONSENT AGENDA: Councilmember Bolkcom asked on Item Nos. 6 and 7 how long they had to pay before the amount due would be applied to their taxes. Darin Nelson , Finance Director, replied that there would not be another notice sent out for utilities, and they had until November 15 to pay. The tree removal was a voluntary assessment so there are signed agreements; homeowners are aware of the time frame to pay before the amount is assessed to the County. MOTION by Councilmember Barnette to approve the Consent Agenda as presented. 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. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. OPEN FORUM VISITORS: No one from the audience spoke. PUBLIC HEARINGS: 11.Consideration of Proposed Amendments to Fridley Home Rule Charter, Chapter 7. Taxation and Finances; Chapter 8. Public Improvements and Special Assessments; Chapter 11. Public Ownership and Operation of Utilities; and Chapter 12. Miscellaneous Provisions (Continued September 23, 2013). 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 AND THE PUBLIC HEARING OPENED AT 7:12 P.M. Deb Skogen, City Clerk, stated the Fridley City Charter Commission meets regularly to review the Fridley City Charter. The Commission reviewed Chapters 7 – 12 for general housekeeping issues and to make sure they were consistent with state law. The Charter Commission recommended an amendment by ordinance to the City Council on May 24, 2010. Amendment by ordinance requires a public hearing. Notice of the public hearing and text of the amendment FRIDLEY CITY COUNCIL MEETING OF OCTOBER 28, 2013 PAGE 4 must be published at least two weeks before the public hearing. The public hearing notice was published in the Fridley Sun Focus on June 3 and 10, 2010. The public hearing was held on June 28, 2010 and continued, due to the City Council’s questions and concerns. Ms. Skogen said due to legislative changes made to the State’s elections laws in 2010; this ordinance was set aside for the Charter Commission to review Chapters 4 and 5 of the Charter. Amendments to Chapters 4 and 5 were adopted by the City Council on April 22, 2013. On May 6, 2013, the Commission began discussion of the ordinance and asked staff to provide information from the Comprehensive Plan. On September 9, 2013, the Commission finalized review and recommended the ordinance be returned to City Council for their review and adoption. Ms. Skogen said the ordinance was sent back to the City Council for continued public hearing to be held on September 23, 2013. The City Attorney directed the City Council to require republication of the notice of the public hearing and to continue the public hearing to October 28, 2013, to allow for more public input. The Notice of Public Hearing and the full text of the ordinance were published in the October 3, 2013, legal section of the Fridley Sun Focus. The following amendments provided incorporate the City’s Council’s questions and concerns: Section 8.01: The City Plan Council recommended changing “transportation lines.” After review and discussion, “transportation lines” was amended to, “public transportation services and facilities” to be consistent with the City’s Comprehensive Plan and the Metropolitan Council’s terminology. Section 8.05: Public Works How Performed Section 11.08: Commission at Discretion of Council Council asked if the two sections should be consistent by having same vote requirement. After review and discussion, the Charter Commission recommends both sections require a super majority vote. City Council requested more information on establishment of a Public Utilities Commission. While there was not a need now, a need may arise in the future, and the City Council should have the right to establish a Public Utilities Commission. The Charter Commission did not define the mission or duties. They felt it would be the appropriate for the Public Utilities Committee to make those decisions. Section 12.01: Official Publications The City Council had a concern about long sentences and wording. After review and discussion, the Commission felt the first part of the paragraph dealt with legal publications required by the state and did not change any language. They broke the paragraph apart into two sections to further clarify the legal requirements and additional optional requirements the City Council could direct. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 28, 2013 PAGE 5 Ms. Skogen stated staff recommends reopening the public hearing on the Proposed Amendment to Fridley City Charter Chapters 7. Taxation and Finance; Chapter 8. Public Improvements and Special Assessments; Chapter 11. Public Ownership and Operation of Utilities; and Chapter 12. Miscellaneous Provisions. Councilmember Bolkcom said there are changes but there is no suggested change to chapter 8. Ms. Skogen said that is correct; the changes are a result of changes suggested in 2010. There is a change to Chapter 8 but not a change that was currently adopted. th Councilmember Saefke noted a typo in Section 7.01 #1 Tax Levy, 5 sentence, should read than “greater that …” He also noted on Question No. 3 in the packet, second sentence should the read “to power…” MOTION by Councilmember Bolkcom to close the public hearing. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING CLOSED AT 7:20 P.M. 12.Consideration of a Proposal for the Issuance of a Revenue Obligation of the City Under Minnesota Statutes, Sections 469.152 through 469.1655, as Amended, on Behalf of the Benedictine Living Center of Fridley, LLC. MOTION by Councilmember Saefke to open the public hearing. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING OPENED AT 7:21 P.M. Darin Nelson, Finance Director, stated earlier this fall the Benedictine Living Center of Fridley contacted the City requesting financing assistance for the construction of a transitional care facility at the Unity hospital campus in Fridley. The type of financial assistance the City can statutorily offer is commonly referred to as conduit financing. Conduit debt is issued under the City’s name, utilizing the City’s bond rating to secure more favorable interest rates. The conduit debt or a revenue bond in this case is secured by revenue derived from Benedictine Living Center. The debt will not constitute a general or moral obligation of the City. Mr. Nelson stated the debt will also not be secured by or payable from any property or assets of the City and will not be secured by any taxing power of the City. The borrower is simply utilizing the City’s name and bond rating to secure more favorable financing terms. The amount of the issuance will not be more than $10M. Mr. Nelson said that if the City agrees to issue the note, the borrower will use the proceeds to finance the acquisition, construction, and equipping of a 45-bed transitional care facility; fund FRIDLEY CITY COUNCIL MEETING OF OCTOBER 28, 2013 PAGE 6 capitalized interest on the note; fund any necessary revenues; and pay costs of issuance of the notes and other costs related to the project. Mr. Nelson stated the City of Mounds View is also issuing a Subordinate Healthcare Facilities Revenue Note in the amount of not more than $3M. Because the project is located in the city of Fridley but the city of Mounds view is being asked to finance a portion of the costs, the City of Fridley is asked to hold a public hearing and provide host approval for the issuance. Mr. Nelson said State Law and the IRS tax code require a public hearing for three reasons: 1.State law requires a public hearing approving the project; 2.IRS tax code requires a public hearing prior to issuance of the note; and 3.A public hearing is required for the City to provide host approval of the Mounds View Note. Mr. Nelson said this debt is similar to the revenue note issued in 2002 for Totino-Grace for the reconstruction of their electrical and heating plant and the construction of additional parking facilities. Julie Eddington, bond Counsel from Kennedy & Graven, representing Benedictine Living Center is present at the meeting. Staff recommends opening the public hearing. Councilmember Barnette asked how the City of Mounds View got involved in this. Julie Eddington, Bond Counsel, replied that originally this project was issued by the North Suburban Hospital District and there were a number of cities who were members, including Fridley and Mounds View. Because of the public sale, the amount could be greater than $10M. This increase in rate of public sales switched to a different way to sell bonds. They came to Fridley to see if they would be willing to issue $10M and Mounds View to issue $3M. That is how Mounds View is incorporated into the deal. Mounds View is also a member on the Hospital Board and offered to do it. Each city gets $10M of bonds that they can issue each year and Fridley has not issued any bonds and Mounds View had $3M to bond. This is a fairly common occurrence in the state. Councilmember Barnette asked if this in any way obligated Fridley taxpayers. Ms. Eddington replied this has no adverse effects on both cities. There is a connection but no responsibility with regard to the debt. Councilmember Bolkcom noted the presentation said $10M and the documents say not to exceed $10M. Mr. Nelson said the note has not been issued yet, so until the exact amount is known, they kept it at “not to exceed $10M”. The project is $13M so they will use the entire $10M from Fridley. Councilmember Bolkcom asked about the host approval and if Mounds View has passed their resolution yet. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 28, 2013 PAGE 7 Ms. Eddington replied that the City of Mounds View has the same meeting as Fridley and they are voting on this tonight; contingent on the City of Fridley’s approval. Councilmember Bolkcom did not understand host approval. Ms. Eddington answered that it is a state law and a federal tax law that requires when another city issues a bond for something within city limits, it requires Council to hold a public hearing and to make a decision that the city will allow them to do that. This is a state law and tax requirement. Councilmember Bolkcom asked if there were any problems with the bond that was issued for Totino Grace in 2002. Mr. Nelson did not recall anything. Councilmember Bolkcom noted that the documents provided had electronic dates and numbers. She asked if this would be completed when final documents were created. Mr. Nelson answered correct. Mayor Lund said this is a good example of City governments and the corporate world getting together to do common good for the community. He understands why Mounds View would assist because they will benefit by having a hospital close to their city. The Senior Vice President of Benedictine Living Center noted that this is a 50 bed facility not a 45 bed facility. MOTION by Councilmember Barnette to close the public hearing. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING CLOSED AT 7:31 P.M. 13.Consideration of the Assessment for the 2013 Nuisance Abatement. MOTION by Councilmember Bolkcom to open the public hearing. Second by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING OPENED AT 7:32 P.M. Darin Nelson , Finance Director, stated this is the annual assessment for those properties in which continuing code violations existed and where the City expended resources to bring the properties into compliance. There are 28 properties involved in this assessment. The total FRIDLEY CITY COUNCIL MEETING OF OCTOBER 28, 2013 PAGE 8 amount of the assessment will be $14,590.77, and the assessment will be for 1 year at 6 1/2%. Staff has not received any correspondence contesting the proposed assessment. Mr. Nelson said that a deferral option for retired or disabled property owners is available for homestead properties. Qualifying factors include:  Owner is at least 65 years old  Owner is retired by virtue of permanent or total disability for whom it would be a hardship to make payment.  Application for deferral must be made within the first thirty days after the final assessment rolls are approved by Council.  Income guidelines are met: Special assessment exceeds 1% of AGI, or o Household income is below the Very Low Income threshold as defined by o CDBG. Staff recommends the public hearing be opened for public comment. The resolution adopting the assessment follows under new business as Item No. 15. Councilmember Varichak asked why the amounts were different between the presentation and the paperwork they received. Mr. Nelson replied the correct amount was $14,590.77. Councilmember Bolkcom asked if it was okay to hold the public hearing because the amounts were different than what was published. Darcy Erickson , City Attorney, replied that the individual notices have been sent out to properties and the individual amounts were listed for each property. A motion could be made to change the amount on the assessment resolution. Mr. Nelson clarified that since the public notice was published, some properties have paid which is why the amount went down. Councilmember Bolkcom noted that there are a lot of mortgage companies. She asked if they were still responsible to pay. Mr. Nelson replied yes, mortgage companies are responsible, and if the assessment is for a large dollar amount, the City will try to get the assessment certified sooner in the year. Councilmember Bolkcom asked what a big assessment was. Mr. Nelson answered that none of these were significant. A large amount would be thousands of dollars. Councilmember Bolkcom said that the City is paying those bills then. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 28, 2013 PAGE 9 Mr. Nelson said there is an assessment fee that covers administrative costs. MOTION by Councilmember Saefke to close 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 CLOSED AT 7:39 P.M. NEW BUSINESS: 14.Resolution Authorizing the Issuance, Sale and Delivery of a Health Care Facilities Revenue Note (BHS/Allina TCU Project ), Series 2013, in the Aggregate Principal Amount not to Exceed $10,000,000, for the Benefit of Benedictine Living Center of Fridley, LLC, Payable Solely from Revenues Pledged Pursuant to a Loan Agreement and a Servicing Agreement; Approving the Form of and Authorizing the Execution and Delivery of Related Documents; and Providing Host Approval for the Subordinate Note to be Issued by the City of Mounds View. Darin Nelson, Finance Director, stated this resolution relates to tonight’s earlier public hearing regarding the issuance of a revenue obligation for the City on behalf of Benedictine Living Center of Fridley, LLC. This resolution authorizes the Mayor, City Manager and Finance Director/Treasurer to execute and deliver all necessary documents. Mr. Nelson said the resolution stipulates that the borrower has agreed to pay directly and through the City any and all costs paid or incurred by the City in connection with the transactions authorized by this resolution. The City has hired Catherine Courtney from Briggs & Morgan to represent the City as the Issuer’s counsel. Ms. Courtney has reviewed and approved the resolution as to form. Mr. Nelson stated the borrower has agreed to pay an administrative fee in regards to this transaction equal to 0.125% of the note issuance, which equates to $12,500 on $10M. Again, Julie Eddington from Kennedy & Graven is available to answer any questions on behalf of the Borrower. Staff recommends approval of the resolution. Councilmember Bolkcom asked what would happen if Mounds View did not pass their resolution. Mr. Nelson said it would limit their ability to borrow up to $10M and they would have to find another city to issue the $3M. Julie Eddington said this issue has been presented to Mounds View twice already and all members are in favor. She is sure it will pass. If for some reason it did not pass, they would have to find another issuer for the $3M. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 28, 2013 PAGE 10 Councilmember Bolkcom asked if it did not pass tonight, would another public hearing need to take place because there would be a new host approval. Ms. Eddington answered yes; another issuer for $3M would need to be found, so this would come back for approval for the new issuer. Councilmember Bolkcom asked if it is not approved is this motion null and void. Darcy Erickson, City Attorney, said Council’s approval approves the $10M. Council would have to go through the process again for host approval. Councilmember Barnette asked for clarification, if $10M is issued, the City will get back $12,500. Ms. Eddington said there is an administrative fee for issuance to help pay for staff time and anything else. Councilmember Barnette noted that the resolution does say 50-bed facility. MOTION by Councilmember Saefke to adopt Resolution No. 2013-67. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 15.Resolution Adopting the Assessment for the 2013 Nuisance Abatement. MOTION by Councilmember Bolkcom to adopt Resolution No. 2013-68. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 16.First Reading of an Ordinance to Amend the City Code of the City of Fridley, Minnesota, by Making a Change in Zoning Districts (Rezoning Request, ZOA #13-01, by Fridley Land, LLC, to Rezone the Property from M-2, Heavy Industrial, to S-2, Redevelopment District, to Create Flexibility with the Industrial Redevelopment of the Property, Generally Located at 4800 East River Road (Ward 3) Scott Hickok , Community Development Director, stated the petitioner is requesting to rezone what has been known as the BAE/FMC/Navy site from M-2, Heavy Industrial, to S-2, Redevelopment District. The purpose of the rezoning is to allow flexibility of both performance standards and uses within the future redevelopment of this site. The property is approximately 122 acres. The building was constructed in the early 1940s, and is approximately 2 million square feet in size. Redevelopment includes the 83-acre Naval Industrial Reserve Ordinance Plant (NIROP) superfund site. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 28, 2013 PAGE 11 Mr. Hickok stated the 14 acre parcel south of the property, known as the FMC Superfund site, is not included as part of this redevelopment project. The petitioner plans to redevelop the property into 1.6M sq. ft. of new industrial buildings, in four phases. The development is being phased to accommodate the existing tenants in the existing building. The Planning Commission held a public hearing on September 18, 2013 for ZOA #13-01. City Council held its public hearing for Rezoning Request, ZOA #13-01 on October 14, 2013. Staff recommends approval of the first reading of the rezoning ordinance as attached. The Second Reading is scheduled for November 4, 2013. Councilmember Bolkcom asked if there were any stipulations Mr. Hyde wasn’t familiar with. Mr. Hickok replied no. th Councilmember Bolkcom asked if this was dated the 4 because that is when the second reading will take place. Mr. Hickok replied yes. MOTION by Councilmember Bolkcom to waive the reading of the ordinance and adopt the ordinance on first reading. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 17.Informal Status Report. Councilmember Bolkcom said the City hosted a successful Pumpkin Night in the Park event with over 3,200 attending. It was not the highest attendance, but was close to it. Mayor Lund announced that on Saturday, the Fridley Historical Society will host their Annual Hall of Fame event from 11:30 a.m. to 1:30 p.m. at the Fridley Community Center. People interested in attending must call and make a reservation. There will be no ticket sales at the door. Mayor Lund said the kickoff event for the Raise the Roof Fundraiser was held on September 23 at Bob’s Produce. Teams must raise their individual goal of $5,000 prior to November 1, sleep on the roof on November 1. Mayor Lund has reached his goal but donations are still being accepted until November 1. Councilmember Barnette said last Friday the Fridley School District had an Alumni Banquet to honor graduates of Fridley who went on to do remarkable things. The challenge was to find 10 graduates and they have 50-60 graduates on the list to honor. If anyone knows of a former Fridley graduate who went on to do wonderful things, contact Dan Roth or myself. It is wonderful to be able to honor these people. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 28, 2013 PAGE 12 Councilmember Bolkcom congratulated Councilmember Saefke for being recognized in the Star Tribune as the “Rocking Grandpa.” Mayor Lund announced that on November 9, the Historical Society is having a grand opening at the History Center on Mississippi Street; the décor will be a 1950’s era Christmas. Entertainment will be provided with possibly an appearance from Elvis. 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 7:55 P.M. Respectfully Submitted, Krista Peterson Scott J. Lund Recording Secretary Mayor