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Fridley CITY COUNCIL MEETING OF JANUARY 5, 2015
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. (TTD/572-3534)
WORKSHOP (6:00 P.M.)
1. Interviews with Commission Applicants
2. Council Feedback
CITY COUNCIL MEETING (7:00 P.M.)
PLEDGE OF ALLEGIANCE.
OATH OF OFFICE:
Councilmember, Ward 1: James T. Saefke
Councilmember, Ward 2: Dolores M. Varichak
Councilmember, Ward 3: Ann R. Bolkcom
APPROVAL OF PROPOSED CONSENT AGENDA:
OLD BUSINESS:
1. Approve the Minutes of the City Council
Meeting of December 8, 2014 (Continued
December22, 2014) .................................................................................... 1 - 42
FRIDLEY CITY COUNCIL MEETING OF JANUARY 5, 2015 PAGE 2
APPROVAL OF PROPOSED CONSENT AGENDA:
NEW BUSINESS:
2. Receive the Minutes of the Planning Commission
Meeting of December 17, 2014 .................................................................... 43 - 54
3. Preliminary Plat Request, PS #14-04, by Fridley
Land, LLC, to Accommodate the Second Phase
of the Redevelopment of the Property, Generally
Located at 4800 East River Road (Ward 3) .................................................. 55 - 58
4. Preliminary Plat Request, PS #14-05, by
DET 7220, LLC, to Replat Two Properties
to Make an Adjustment to the Property
Line, Generally Located at 7220 Central
Avenue and 1241 — 72"d Avenue (Ward 2) ................................................... 59 - 63
5. Special Use Permit Request, SP #14-09, by
Good Deal Auto Sales, Inc., to Allow an Outdoor
Auto Sale Lot, Generally Located at 7298
Highway 65 N.E.;
and
Resolution Approving Special Use Permit,
SP #14-09 for Outdoor Used Auto Sales,
Petitioned by Good Deal Auto Sales, inc., on
Behalf of Shranjit Singh, the Property Owner
for the Property Located at 7298 Highway 65
N.E. (Ward 1) ............................................................................................... 64 - 71
6. Final Plat Request, PS #14-01, by ZCOF TL
Fridley, LLC, to Subdivide the Existing Large
Lot to Create Two Separate Parcels from the
Original Lot, for Development Along 57th Avenue,
for the Property Located at 250 — 57th Avenue
N.E.;
and
Resolution Approving Final Plat, P.S. #14-01 by
ZCOF TL Fridley, LLC, the Property Owner of
250— 57t" Avenue N.E. to Create Two Additional
Parcels of Land (Ward 3) .............................................................................. 72 - 76
FRIDLEY CITY COUNCIL MEETING OF JANUARY 5, 2015 PAGE 3
APPROVAL OF PROPOSED CONSENT AGENDA:
NEW BUSINESS (CONTINUED):
7. Resolution Designating an Official Newspaper
forthe Year 2015 .......................................................................................... 77 - 78
8. Resolution Designating Official Depositories
forthe City of Fridley .................................................................................... 79 - 81
9. Approve 2015 City Council and Staff
Appointments ............................................................................................... 82
10. Appointment— City Employee ...................................................................... 83
11. Claims (166681 — 166795) ........................................................................... 84 - 93
12. Licenses ....................................................................................................... 94 - 96
13. Estimates ...................................................................................................... 97
OPEN FORUM, VISITORS: Consideration of items not on Agenda — 15 minutes.
ADOPTION OF AGENDA:
FRIDLEY CITY COUNCIL MEETING OF JANUARY 5, 2015 PAGE 4
PUBLIC HEARING:
14. Consider the Application for the Transfer of
the Cable Franchise System from Comcast of
Minnesota, Inc., the Existing Cable Television
Franchisee, to Midwest Cable, Inc. ............................................................... 98 - 119
15. Informal Status Reports ................................................................................ 120
ADJOURN.
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FRIDLEY CITY COUNCIL MEETING
OF JANUARY 5, 2015
7:00 p.m. - City Council Chambers
Attendance Sheet
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CITY COUNCIL MEETING
CITY OF FRIDLEY
DECEMBER 8,2014
The City Council meeting for the City of Fridley was called to order by Mayor Lund at 7:04 p.m.
ROLL CALL:
MEMBERS PRESENT: Mayor Lund
Councilmember Barnette
Councilmembex Saeflce
Councilmember Varichak
Councilmember Bolkcom
OTHERS PRESENT: Wally Wysopal, City Manager
Darcy Erickson, City Attorney
Scott Hickok, Community Development Director
Julie Jones,City Planner
James Kosluchar,Public Works Director
Darin Nelson, Finance Director and Treasurer
Kay Qualley, Environmental Planner,
Pam Reynolds, 1241 Norton
Kevin Faye, 6034 Fourth Street
Ron Bloch, 5201 Pierce Street NE
Leroy Anderson, 7581 Alden Way
Jim Woodison, 6241 Sunrise Drive NE
Pat Delaney, 6250 Riverview Terrace
Eric Larson, 69th Place
Richard Svanda, 1521 Woodside Court
Brenda Michnowski, 6297 Jackson Street
3ohn Krack, 7629 Lakeside Road NE
Jim Kiewel, 1627 Rice Creek Road
Ted Kueppers, 7361 Tempo Terrace
Adam Hardy, 6845 Channel Road NE
Norma Rust, 5735 Quincy
Gary Alfernes, 570 Rice Creek Boulevard
3ustin Foell,6005 Gardena Circle
Joan Olson, 6320 Van Buren
Brian DuRose, Gibralter Avenue
PROCLAMATIONS:
Student Foreign Exchange Week-December 8-14, 2014
Daniela Fernandes from Portugal
Simen Angell-Olsen from Norway
1
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8,2014 PAGE 2
APPROVAL OF PROPOSED CONSENT AGENDA:
APPROVAL OF MINUTES:
City Council Meeting of November 24,2014
Councilmember Bolkcom referred to the "Informal Status Reports" section. At the end of the
first sentence, she asked that the following sentence be added: "She also wanted to thank the
residents who attended the informal session."
APPROVED AS CORRECTED.
OLD BUSINESS:
1. Second Reading of an Ordinance Amending Fridley City Charter, Chapter 7,
Taxation and Finances, Section 7.04 Preparation of Annual Budget, and Section
7.05 Passage of Budget.
WAIVED TAE READING OF THE ORDINANCE AND ADOPTED ORDINANCE NO.
1318 ON SECOND READING AND ORDERED PUBLICATION.
2. Resolution Denying Final Plat, P.S. #12-01, and Easement Vacation, SAV #13-02,
Pertaining to the Columbia Arena Property, Located at 7011 University Avenue
N.E. (Ward 1).
ADOPTED RESOLUTION NO. 2014-88.
NEW BUSINESS:
3. Special Use Permit Request, SP#14-05, by University Auto Sales & Service, LLC, to
Allow an Indoor Used Car Sales Facility, Generally Located at 7700 University
Avenue N.E.;
and
Resolution Approving Special Use Permit, SP #14-05, for Indoor Auto Sales,
Petitioned by University Auto Properties, LLLP, the Property Owner of 7700
University Avenue N.E. (Ward 3).
APPROVED SPECIAL USE PERMIT, SP #14-05, by University Auto Properties, LLP,
AND ADOPTED RESOLUTION NO.2014-89.
2
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8, 2014 PAGE 3
4. Special Use Permit Request, SP#14-08, by University Auto Sales & Service,LLC, to
Allow an Electronic Changeable Message Sign as Part of the Free-Standing Sign,
Generally Located at 7700 University Avenue N.E.;
and
Resolution Approving Special Use Permit, SP #14-08 for an Electronic Changeable
Sign, Petitioned by University Auto Properties, LLLP, the Property Owner of 7700
University Avenue N.E. (Ward 3).
APPROVED SPECIAL USE PERMIT, SP #14-08, BY University Auto Sales & Service,
LLC,AND ADOPTED RESOLUTION NO. 2014-90.
5. Special Use Permit Request, SP #14-06, by DeMars Signs to Allow an Electronic
Changeable Message Sign as Part of the Free-Standing Sign, Generally Located at
661 Highway 65 N.E.;
and
Resolution Approving Special Use Permit, SP #14-06, for DeMars Signs, on Behalf
of Crooners Real Estate Company, LLC, the Property Owner of Crooners Lounge
and Supper Club,Located at 6161 Highway 65 N.E. (Ward 2).
APPROVED SPECIAL USE PERMIT, SP #14-06, AND ADOPTED RESOLUTION NO.
2014-91.
6. Request for Public Hearing Postponement for Special Use Permit, SP #14-07, by
TCO Design, to Allow a Comprehensive Home Health Care Use in an R-3, Multi-
Family Zoning District, Generally Located at 5310 Fourth Street N.E. (Ward 1).
Councilmember Bolkcom asked that the e-mail requesting the postponement be added.
APPROVED.
7. Resolurion Amending Resolution No. 2014-54, which Approved a $1,500,000 Loan
to the Housing and Redevelopment Authority in and for the City of Fridley,
Minnesota.
Wally Wysopal, City Manager, stated this loan provides for any extraordinary expense paid
before principal. This was an amendment to the existing resolution of agreement that would
require any TIF (tax increment financing) monies would be pay any extraordinary expenses
before the HRA and City received their payment of principal.
ADOPTED RESOLUTION NO. 2014-92.
3
FRIDLEY CIT�COUNCIL MEETING OF DECEMBER_8,2014 PAGE 4
8. Resolution Approving the Anoka County Fire Protection Council Joint Powers
Agreement.
THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON
TI3E REGULAR AGENDA.
9. Receive Bids and Award Water Treatment Plant No. 3 Filter Drain Pump
Improvement Project 459.
RECEIVED BIDS AND AWARDED PROJECT TO MUNICIPAL BUILDERS,INC.
10. Approve Change Order No. 1 for Water Main Project No. 427/Sewer Forcemain
Project No.433
Mr.Wysopal stated this was for$8,000 or 3 pexcent of the project cost.
APPROVED.
11. Clauns (166317 - 166452)
APPROVED.
12. Licenses
APPROVED THE LICENSES AS SUBMITTED AND AS ON FILE.
13. Estimates
Sunram Construction, Inc.
20010- 75th Avenue North
Corcoran,MN 55340
Main Street Bike/Walk Project No. ST2011-22
EstimateNo. 5..............................................................$15,390.00
Blackstone Contractors, LLC
7775 Corcoran Trail East
Corcoran,MN 55340
Oak Glen Creek Erosion Control
Project No. 380
EstimateNo. 7..............................................................$ 4,632.52
APPROVED.
4
FRIDLEY CITY COUNCIL MEETING OF DECEMBER_8,2014 PAGE 5
APPROVAL OF CONSENT AGENDA:
Councilmember Bolkcom requested that Item No. 8 be removed and placed on the regular
agenda. �
MOTION by Councilmember Barnette to approve the proposed consent agenda with the
removal of Item 8 and addition of the e-mail under Item No. 6. Seconded by Councilmember
Bolkcom.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
OPEN FORUM:
No one from the audience spoke.
NEW BUSINESS:
8. Resolution Approving the Anoka County Fire Protection Council Joint Powers
Agreement.
Councilmember Bolkcom stated not in the agreement itself, but in the Bylaws, on Page 75 in
Section 19, it says "Written Action. Any action required or permitted to be taken at a Board of
Director's meeting may be taken by written action signed, or consented to by authenticated
electronic communication. . .." There is comment about how the business is related to a quorum.
She asked Attorney Erickson to explain this.
Darcy Erickson, City Attorney, stated she had a brief conversation with Jennifer Urban, the
attorney for the Joint Powers; and they discussed the written action Councilmember Bolkcom
had a question about. Essentially, a JPA is subject to the open meeting law. If there is going to
be action by just a written instrument, that would be very difficult. It needs to mesh with the
requirements of the open meeting law.
Attorney Erickson stated she recommended Council approve the Joint Powers Agreement and
the attached Bylaws with the understanding that the JPA entity and legal counsel are looking into
that matter. The entity cannot do anything in contravention of the open meeting law, but there
will be some consultation with the Department of Administration for clarification. That power is
a power that non-profit entities have but,because this is a governmental entity, so there is kind of
a grayish line that they want to clarify.
MOTION by Councilmember Bolkcom to adopt Resolution No. 2014-92. Seconded by
Councilmember Saefke.
Councilmember Bolkcom asked that the By-Laws come back to Council for review.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
5
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8,2014 PAGE 6
ADOPTION OF THE AGENDA:
MOTION by Councilmember Bolkcom to approve the agenda. Seconded by Councilmember
Saeflce.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
2015 BUDGET AND PROPERTY TAX PUBLIC MEETING:
14. Presentation of the 2015 City of Fridley Budget.
Darin Nelson, Finance Director and Treasurer, stated the major component of the budget is the
taac levy. Fridley levy limits are unique as we have, in addition to the Council's levy setting
authority, two additional authorities that govern the levy. The first is the City's Charter and,
based on the City's Charter, the City's levy is limited to the lower of either 5 percent or the CPI
for all urban consumers in the Minneapolis/St. Paul metropolitan area. The City's cap for 2015 is
1.94 percent according to the Charter.
Mr. Nelson stated the other authority that governs the City's levy limit is the State Legislature.
Compared to previous years, the Legislature did not impose levy limits for 2015.
Mr. Nelson said about 89 percent of the City's levy is allocated to the general fund with the
remainder being designated to debt service, Springbrook Nature Center, and capital project
funds.
Mr. Nelson stated on August 25, Council approved a preliminary levy of$11,734,607. That is
an increase of 1.94 percent, the City's cap for 2015.
Mr. Nelson stated as to a breakdown of how the levy is allocated comparing 2014 and 2015, the
general fund is the majority, and there are some changes in allocations and shifting of funds to
the general fund from capital project funds for this year. The bottom line is 1.94 percent, and
that equates to just over$223,000 additional levy for this year.
Mr. Nelson stated the quesrion often asked is, what impact does 1.94 percent have on the
homeowners in Fridley. Commercial and residential properties are reacting differently in the
current market, and that is having a dramatic impact on property taxes. For taxes payable in
2014 (which is your value actually in 2013), residential property saw about a 10 percent decline
in value throughout the City, and commercial properties stayed relatively flat. That shifted the
tax burden from residential properties over to commercial properties. The City actually had a 2.3
percent levy increase last year, but yet residential properties saw decreases in about the 10
percent range.
Mr. Nelson stated this year, we are seeing increases in residential properties. The residential
market is beginning to recover with increases of 15 to 18 percent in market values. Property
taxes are consequently going up. Commercial properties have also increased but at a much lower
rate. The property tax burden for 2015 is shifting from commercial property back over to
residential. In essence, what we wanted to do is take three separate homes and demonstrate over
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FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8,2014 PAGE 7
a three-year span the tax comparisons. Taxes are generally going up for 2015, but they took a
pretty dramatic decrease in 2014.
Mr. Nelson stated the market is really playing two different factors here. There is the
commercial and the residential and the two interact differently. They both come into play in
determining property t�liability.
Mr. Nelson presented charts comparing the levy over the last ten years. Debt service will be
declining. For 2016, there is one debt service bond that will be paid off in 2016 so there will be
a small decline there.
Mr.Nelson stated in reviewing operations,the City continues to monitor expenditures to achieve
cost savings without negatively impacting service levels. An example of this was the extensive
analysis completed this summer regarding the labor distribution for the City's three utility funds.
Mr. Nelson stated the analysis concluded the Storm Water Fund was relying heavily on
Engineering and Public Works employees for both the general fund and sewer utility fund. We
did an extensive analysis on each individual's time and whether it was being costed to the job
they were actually doing. We found a lot of the employees, Engineering staff specifically, and
then a lot of the sewer employees,were doing work that actually should have been charged to the
Storm Water Fund. The Storm Water Fund is an enterprise fund just like the Water and Sewer
Funds but it was not standing alone on its own. With the help of Jim Kosluchar, the Public
Works Director, we have allocated the labor accordingly. In 2015, each fund will stand on its
own.
Mr. Nelson stated the general fund does not have as much flexibility as some of the other funds.
Therefore,it is imperative we make sure the general fund is not paying for other funds' expenses.
That is really what was happening. By doing the labor redistribution, it freed up some funds
within the general fund which has allowed the City to rehire or have in the budget for 2015 a
police officer position that has been frozen in prior years.
Mr. Nelson stated another initiative of Council and the staff is we continue to be independent of
local government aid (LGA). We have dedicated all of the City's LGA over the last couple of
years to capital project funds so it is no longer in the operational budget. LGA is not budgeted in
the General Fund. The State has the ability to pull LGA (the City gets its second half of the
LGA payment December 20), and we want to make sure the City covers itself. With LGA
dedicated to capital project funds, it is intended to be used for one-time purchases which we are
more able to adjust in the budgets if we need to at the end of the year or the following year.
Mr. Nelson stated we also have a goal of eliminating capital equipment certificates. The City
last issued those back in 2010 and 2012. This budget, along with the 2015 through 2019 CII',
does eliminate any of those future capital equipment debt issuances.
Mr. Nelson stated we also want to improve on our capability to measure outcomes and current
budget linkages so the public can better understand the performance of their taat dollars. The
City revised the budget last year to make it more of a narrative form and included indicators and
key measures. We intend to take the budget a step further in the upcoming year.
7
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8,2014 PAGE 8
Mr. Nelson stated as for the overall economic climate, property values in the City have
increased for the first time in a couple of years. The City's housing stock is also beginning to
recover. There was an 18 percent on average increase in property values for residential
properties. Distressed sales have declined. Commercial redevelopment continues to be an
economic driver within the City. There are a couple major projects going on right now that are
adding both jobs and capacity to the City.
Mr. Nelson stated the improving economy, increase in home values, and the City's conservative
management practices has paid off for the City in its bond rating. Moody's was in the City for a
review, and they confirmed the City's Aal credit rating, which is the second-highest rating that
any City can receive. The City is eliminated from receiving a AAA rating as it just does not
have the size to achieve that rating. The negative outlook rating has been removed. In 2012, we
had a negative outlook rating because of the declining values in the City.
Mr. Nelson stated moving over to the General Fund, the budget also includes a revised 2014
budget. The budget includes a column for the original 2014 budget and then a revised 2014
budget. Every year we would come to Council after the end of the year and do reappropriations
for donations that would come in which would offset expenditures. We tried to incorporate a
majority of these into the revised budget column. This should be the final budget for 2014.
Mr. Nelson stated the General Fund are revenues coming in higher than anticipated. We have
had some additional building and permit revenues related to the redevelopment taking place.
Municipal state aid came in a little higher than anticipated. Also, the City had some public
safety grants that were not anticipated.
Mr. Nelson stated with the expenditures coming in on budget for 2014, we estimate about a
$345,000 surplus compared to the original budget which was about a$30,000 to $35,004 surplus.
We want to make sure the City's fund balance stays at that appropriate guideline, which was
about 35 to 50 percent of expenditures. Ensuring a small surplus each year will keep that
percentage where we want it to be.
Mr. Nelson stated looking at the 2015 budget for the General Fund, we are shifting the
allocation of the levy. The levy is going to inerease in the General Fund by $337,040 or about
3.4 percent. The City's total revenue is only increasing about $100,000 or .7 percent. The cause
for that is the City is shifting part of the tax levy from the Capital Equipment Fund to the General
Fund. In addition, the City is transferring the liquor store profits that had typically gone into the
General Fund, to the Capital Equipment Fund and to the Park Improvement Fund. The idea
behind this shift is the City wants to demonstrative that liquor store proceeds axe purchasing
tangible items. In the past, it has been hard to promote the liquor store proceeds since they
reduced the general operating budget but were not tied to any specific item or service.
Mr. Nelson stated as to the expenditure side, the City has expenditures increasing about
$134,000 or .9 percent. The City has included the addition of a frozen police officer position
from a number of years ago. What really aided here was the reallocation of labor, shifting those
actual Public Works costs to the appropriate funds. Also, there is a moderate cost of living
adjustment for personnel of 1.5 percent. .
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FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8.2014 PAGE 9
Mr. Nelson presented a breakdown of the revenue from the general fund. The taxes are a vast
majority of how the City derives its revenue. The City has about 69 percent or about three-
quarters of its revenue within the General Fund coming from taxes. The remaining part comes
from licenses, charges for services, etc. The City is heavily dependent upon property taxes for
its General Fund just like any other municipal government would be.
Mr. Nelson stated Public Works and Public Safety equate to about 70 percent of the City's
expenditures from the General Fund. Being a service organization, the City's personnel costs are
going to be a majority of the costs. Three-quarters of the City's costs are dedicated to personnel.
There is very little supplies and the remainder leftover for other services and charges.
Mr. Nelson stated the budget also includes a capital projects funds. This is the second year of
the City's stand alone Capital Ixnprovements Plan. In June, Council reviewed a draft version of
the CIP and reviewed it again in August before approving the CIP in late August when the
Council also approve a preliminary levy.
Mr. Nelson stated the CIP is the driver of the operational budget, and 26 percent of the entire
budget is dedicated to capital outlay. The 2015 CIP items are included in this budget for final
review and approval.
Mr. Nelson stated moving onto Enterprise Funds, these funds do incorporate the utility budget
and the rate increases approved at the November 24 Council meeting.
Mr. Nelson said within a $38 million budget, there are other sources, bond proceeds, at $4.2
million. That is not a reoccurring item. That happens once every so often. Also, under "other
income" the bond money from the State for the SPRING project is included in there.
Mr. Nelson stated the number are a little different for expenditures. They have about
$37,500.000 in 2014 compared to about $40,420,000 in 2015. A lot of that again is because of
the bond issuance. It probably will not be issued in 2014 but will be issued in 2015; however,
we have a couple of years to spend all those proceeds. We will issue it the one year and not
necessarily spend it all in that same year.
Mr. Nelson stated when they bring all the funds together, here is how the City-wide revenue is
derived. As we saw in the general fund,property taxes made up 66 percent of the revenue within
that fund. When we put all of the funds together, property taxes are about 28 percent and the
user fees and charges, that include utility fees, and liquor receipts which is $4,000,000 a year or
so, become a significant piece of the pie with some smaller pieces included within
intergovernmental revenue and other income.
Mr. Nelson said with respect to the expenditures, a lot of the CIP projects that are Public Works
related or Police and Fire related continue to be major factors.
Mr. Nelson stated the general government may seem a little heavy here, but that includes liquor
store expenditures as well.
Mr. Nelson stated the City has complied with the appropriate sections of the City Charter that
require certain formats and information be contained within the budget document, and the budget
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FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8,2014 PAGE 10
needs to be approved by the Council and submitted to the County by the end of December. No
action is required for tonight.
Mr. Nelson stated the budget is available and has been available on the City's website for a few
weeks. We also put up a video that came up from Anoka County that he saw out on Twitter a
week or so ago that explains the distribution of t�es and how taxes are derived.
Councilmember Barnette said for many, many years they have talked about how low Fridley
residents'property taaLes were compared to most of them in Anoka County partly because Fridley
has a large commerciallindustrial base. It used to be that the commerciaUindustrial paid 60
percent, and residential only 40 percent. He asked if that has changed much.
Mr. Nelson replied that percentage has completely flip flopped now. It is now 60 percent
residential and 40 percent commerciallindustrial, give or take 1 or 2 percent on either side.
Mr. Wysopal said it does not just have to do with redevelopment but also some of the changes
in the property tax classification rates at the State level.
Mr. Nelson replied, yes, the fiscal disparities program is experiencing shifts in contributions and
the distributions.
Councilmember Bolkcom asked if this is just a presentation. There is no actual action item on
the agenda, correct?
Mr. Nelson replied, correct, they will take formal action at the December 22 City Council
meeting.
Pam Reynolds, 1241 Norton, stated in one of the last slides, it says it complies with everything
in the Charter. The Charter says that the Council shall approve their compensation and
renumeration by the first meeting of November. That was never an agenda item. It was not in
compliance with the Charter.
Councilmember Saetke said it was not on the agenda as Council decided not to give themselves
a raise for 2015. Therefore,it is not part of the budget.
Mayor Lund stated there was no change in the budget.
Ms.Reynolds replied,but the Charter says you ha�e to approve whatever it is.
Mayor Lund stated historically they have never approved a line item such as their
compensation, only when there has been an increase.
Councilmember Bolkcom stated in the past they have always either denied or approved it at a
meeting. This is the first year they have not done that since they were not giving themselves a
raise. They will look into it.
Kevin Fay, 6034 Fourth Street, said regarding the 40/60 split, Mr. Nelson mentioned that would
kind of be made up with some of the changes that are taking place. He asked is that because of a
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FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8,2014 PAGE 11
shift back over to commercial heavier t�ing or is that because of the shift the City seems to
desire in more upscale residential properties?
Mr. Nelson replied it has taken many years to make the 60/40 split. They have seen a decline in
values in commercial properties over the years, and residential properties have kind of taken the
place of that. It may take years to get it back to that.
Mayor Lund stated it is actually from the State legislatures. They are making the shift. There
was a major shift throughout the State of Minnesota which has been taking place for the last
decade, and a lot of it has to do with the local government aid shift. They have changed the
formulas. It is a State thing.
PUBLIC HEARING/NEW BUSINESS:
15. Consideration of Organized Residential Solid Waste Collection by Districts;
and
Motion to Set a Date for Taking Formal Action on the Proposal for Organized
Residential Solid Waste Collection by Districts.
MOTION by Councilmember Bolkcom to open the public hearing. Seconded by
Councilmember Saefke.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY AND THE HEARING WAS OPENED AT 7:49.
Mr. Wysopal stated the process has taken about 12 months to arrive at a draft proposed
agreement, and they have met with all five haulers. Those haulers include Ace Solid Waste,
Waste Management of Minnesota, LePage & Sons, Republic Services, and Walters Recycling
and Refuse. They followed the State Statute in this regard. It was a fairly new statute, and they
were obliged to meet with those haulers who are currently licensed to do business in the City and
have accounts. The City staff inet exclusively with them during the last year.
Mr. Wysopal stated they had a number of ineetings and they took into consideration all of the
haulers' concerns, as well as the concerns the City had with regard to developing a proposal.
There was a minimum 60-day negotiation period that is required by statute. It took longer than
that,but the City was not interested in a quick decision but a good decision.
Mr. Wysopal stated this came about as a result of the Environmental Quality & Energy
Commission which made a recommendation to the City Council to address this issue. In
December of last year, the City Council made the recommendation to do that, and staff began
meeting with the haulers.
Mr. Wysopal stated the goal was to organize garbage collection by districts. They divided the
City into five zones. From the beginning, the haulers did not reveal their books of business
because they felt it was a trade secret, but they were very willing to participate in the rest of the
process. Staff held off on requiring them to disclose who their customers were. The haulers told
staff they would have no problem with identifying who their customers were if the City Council
11
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8,2014 PAGE 12 ,
were to enter into an agreement. If the City Council did not enter into an agreement, they did not
want to have all of their accounts made public. They have had a very good relationship with the
haulers in terms of good dealings and fair play. The haulers were very up front and open with
staff and staff was with them, and they exchanged ideas in very good negotiation sessions.
Mr. Wysopal stated the crux of the agreement is that single-family homes, duplexes, and
triplexes are affected here. They do not include any of the townhomes, manufactured home I,
parks, apartment buildings, and commercial or industrial areas. The garbage would be picked up I
on days that recycling is collected.
Mr. Wysopal stated the problems City staff identified included wear and tear on the streets,
some environmental issues, and concerns about noise and safety. Price was not the number one
issue. Staff was dealing with issues that affected the City and its assets. However, staff was
concerned about fair pricing and wanted the prices to be uniform through the City for the same
types of services.
Mr. Wysopal stated the services they have now under this proposed agreement would remain
the same. The 30, 60, or 90 gallon container options would be available to the residents. Any
additional services, such as yard waste or special items such as refrigerators and sofas, would be
picked up on a separate operation with the hauler.
Mr. Wysopal stated the haulers would be responsible for the billing under this proposal. It
became evident to the City staff as they went through the negotiations that the haulers have a
tremendous respect for their customers. Staff felt it would be a good idea to allow the haulers to
retain the billing operation and, therefore, the customer relation piece as well.
Mr. Wysopal stated the haulers would divide the City up based on their average customer count
six months prior to the commencement of the negotiation period. That language comes exactly
out of the State Statute. What it means is that the five haulers would have no less of a market
share in 2015 if this were to be enacted than they do today. As a matter of fact, they may pick up
some additional accounts because not every resident in Fridley has garbage collection even
though it has an ordinance that requires that.
Mr. Wysopal stated with respect to snowbirds, people who take off for a month or more at a
period of time would be able to contact the hauler and request they not be billed for that period
of time. The one-month period was suggested by the haulers as that is what they have as current
practice.
Mr. Wysopal stated the City would guarantee payment only if the resident was in arrears and
that would be after 75 days. The City was able to offer that guaranteed payment so that the
haulers would be able to do the collection of the homes even though a homeowner may not make
payment. This they felt was very similar to what the City currently does. It is exactly what it
does with the water and sewer accounts. If the City has delinquent accounts, it submits it to the
City Council for assessment onto the homeowner's property, and then the City gets the collection
of that money in due time along with fees that go with it. The City has the Charter authority to
be able to assess for unpaid garbage bills.
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FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8,2014 PAGE 13
Mr. Wysopal stated staff felt there are five key points this proposal addresses. One, it is an asset i
preservation for the City. The roads represent over a$67 million asset to the City, and they need
to be protected. Two, the City feels it keeps within the spirit of the Charter if it spends wisely.
We are all familiar with the Charter limitation. It also has a reciprocal relationship that the City
is a wise spender of taxpayer dollars. At $67, million the streets represent the largest asset in the
City. Any percentage of savings on that is going to be big.
Mr. Wysopal stated third, the City also wanted to reduce the number of code enforcement
situations that are related to garbage. The numbers are also quite impressive in terms of gross
numbers of code enforcement issues the City deals with related to garbage.
Mr. Wysopal said fourth, it will improve the rates for most of the City's residents. They
recognize that under the current system residents may be paying what the haulers presented as
the market rate or they may have what they call "sweetheart deals." There might be some
residents who can show that their current bill is less than what the City negotiated. Staff feels
that cost is not everything, because there are the dollars that are being used by the City for the
deterioration of the streets. The garbage collection system is the only business that operates in
the City on a public street that contributes significantly to its deterioration, but that does not pay
any taxes, etc., towards that. For example, the City's cable provider, Comcast, has their cables,
in the City's right-of-way; and the City receives hundreds of thousands of dollars from Comcast
in return for being in the City's right-of-ways.
Mr.Wysopal stated fifth it addresses environmental safety and noise improvements.
Kay Qualley, Environmental Planner, stated they are doing sort of a 5-4-3-2-1 on the key points
Mr. Wysopal talked about. The call she gets most frequently at the City is on noise impacts.
Road impacts and then proper disposal of garbage as well which Julie Jones, Planning Manager,
will be addressing shortly represents the rest of the calls.
Ms. Qualley stated with respect to fuel consumption during collection activities, one of the
things the Minnesota Pollution Control Agency has put out is that open hauling systems typically
use higher amounts of fuel than cities with organized systems that are organized or in zones.
Fewer vehicle miles traveled also results in less air pollutant materials and particulate matters
from heavy daily waste collection vehicles. Public concern is increasing about the human health
impacts because of emissions, and this is just another category of emissions.
Ms. Qualley stated another thing that happens every couple of years is a hazardous spill.
Although infrequent, by reducing the number of trucks in the neighborhoods, they are also
hoping that number will continue to decrease.
Ms. Qualley stated probably they could spend the rest of the night talking about potential
environmental benefits, but safety is probably the other thing they hear about with the potential
for garbage truck conflicts with autos, bikes and pedestrians. A lot of schools would like kids to
walk more, but they are uncomfortable with traffic and sidewalks being absent in some areas,
etc. Reducing the number of potential conflict points with all of the modes of transportation
could be a possible benefit as well.
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FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8,2014 PAGE 14
Ms. Qualley stated because 17 percent savings in this negotiated draft contact is an average,
some people will pay more and some people will pay less. At the open house on November 20, a
lot of people reviewed the additional benefits for a contract of this sort and said, well, I might
pay a little more; and right next to them was someone who paid a little less.
Ms. Qualley presented pricing information for the first year for 30, 60, and 90 gallon cart sizes.
The $80 yard waste cost per season includes 12 compostable bags and 12 bundles. That $4 per
additional bag is a Metropolitan solid waste bag surcharge if you exceed your cart and you have
a bag sitting out there. You could be surcharged if you had additional bags beyond 12 bags of
yard waste or 12 bundles.
Julie Jones, City Planner, stated as far as the code enforcement key points, this is something she
brought up to the City Council over a decade ago. She was concerned about all of the staff time
they were spending on code enforcement related to the City's open system and at the time the
Council directed staff to try and get the garbage haulers to at least change their routes so they
would pick up on the same day as recycling, which they have done voluntarily for the most part
over the years. The City still continued to have problems.
Ms. Jones stated outside storage and solid waste issues are the City's top two code enforcement
violations. The last year she has full data was for 2012, when they did systematic inspections on
residential properties over the summer. In that year the City had approximately 400 code
enforcement cases that were outside storage and solid waste related cases. That was about 30
percent of the City's cases which is pretty average because the City will have between 1,000 and
2,000 code enforcement cases a year. Probably a good 25 percent of those cases related to
households that either did not have garbage service at all or had inadequate garbage service.
They know from other cities that have gone through this process that, once they become
organized, you find that about 10 to 25 percent of the population does not have garbage service
even though the City Code requires weekly garbage service.
Ms. Jones stated this takes a great deal of staff time. A lot of these cases are not just a simple
letter or two but involves multiple letters, multiple inspections, abatements, and citations.
Determining whether someone has garbage service is very time consuming in the City's current
system. When the City gets a call that says my neighbor is stockpiling their garbage in their
garage or back behind the shed, the City has to call all five haulers and confirm whether there is
an account for that address and then go from there.
Ms. Jones stated in an organized system, staff would simply be able to go to a map and
determine what company is servicing that particular address. Also in an organized system, the
haulers will be more willing to work with the City and let it know when they have a property
within their route area that does not have service or is not putting out garbage.
Ms. Jones stated as to other difficulties with the open hauling system, even though the City
requires weekly garbage service, the City knows there is a high percentage of people in the
community who do not contract for service. Probably the City's biggest problem with that is
with duplexes which of course they are proposing to be included in this proposal. With a duplex,
the owner of the duplex who does not live there, requires the renter to contract for garbage
service, and they do not do anything to follow up to make sure the renter does contract for
14
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8.2014 PAGE 15 I
garbage service. Sometimes people are using their recycling carts for their garbage service.
Sometimes they are disposing it in other places that are not legal.
Ms. Jones stated the biggest problem the City sees is that people jump from one hauler to the
next in an open system. They will contract with company "A", not pay that company, and when
that company takes away their cart, they will contract with the next company down the list, and
keep going down the line. It is not unusual for the City to have code enforcement cases where
they talk to all five garbage haulers, and all five of them give staff the same story that these
people owe them money and they would not provide them a garbage cart again until they pay the
amount they owe in arrears plus pay the next three months forward.
Ms. Jones stated they feel like an organized system can give the City more accountability as far
as code enforcement because staff will have a way of knowing that everyone has garbage
service. In the proposal the haulers have provided, there is an opt-out option for people that
maybe do have a legal means to get rid of their garbage.
Ms. Jones stated there really is more incentive for the occupant to pay for monthly garbage
service in this system, too, because if they do not, as they heard from the City Manager, the
proposal in the contract is that after 75 days, the hauler can turn those delinquent bills over to the
City; and the City would be able to assess that unpaid amount. That allows the City to help solve
some of these long-time problems. In the current system staff is often dealing sometimes for
years on some of these cases trying to get the people to contract for proper garbage service.
Ms. Jones stated, where do people dump their trash when they do not have service? Well, at the
nearest apartment building, park, or business; and that is a cost to everyone in the community. It
is a very unfair and difficult thing and has been a real problem in the community. Inadequate
service really is a cost to the taxpayers, not just in terms of the property owners who are getting
illegally dumped on, but it is also a cost in staff time for all of these cases they are dealing with
code enforcement-wise.
Mr. Wysopal stated he made references in his earlier comments that staff is very aware of the
restrictions the Charter places on the City's levy limitation; but it also has a reciprocal
requirement that the City takes care of the assets it has. The City needs to protect its investments
and over$60 million in its streets.
James Kosluchar, Public Works Director, said the City's streets are a public asset with an
estimated value of$67 million. It has 80 plus miles of centerline asphalt streets in the City and
2201ane miles of asphalt streets in the City. The street assets are owned by the public, and it is
the City's charge to maintain them in the most efficient way possible.
Mr. Kosluchar stated vehicle loading is the major factor in street deterioration. Stresses
because of vehicle turning movements and starting and stopping can also deteriorate pavement.
Environmental factors caused by water intrusion and frost, can have impacts. However, with
Fridley's typically well-drained soils, proper minor maintenance can largely address these. In
other words, if they do frequent sealcoating, crack sealing, and pothole sealing and make sure
that water cannot intrude and, in knowing the City has a good drainage subbase later, it can
typically mitigate those environmental factors quite well.
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FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8,2014 PAGE 16
Mr. Kosluchar stated vehicles cause pavement stress which will eventually require major
maintenance to avoid pavement failure. Heavy vehicles, such as refuse trucks, cause greatly
increased loading.
Mr. Kosluchar stated deterioration because of a loading vehicle is considered in design of
pavements using a unit of loading known as an ESAL or equivalent single �le load. He
presented a listing of different ESAL factors for different types of vehicles, including residential
recycling trucks and residential trash trucks. There are some variations in some of these ESAL
calculations depending on the type of truck, the spacing of axles, etc. Generally it has been the
City's practice that residential trash trucks of the type they have in Fridley are typically 1,000 to
1,500 times the loading of a single-passenger vehicle.
Mr. Kosluchar stated hea�y vehicle loads have the greatest impact on pavement life. The
damage caused by a particular vehicle is roughly related to the load increased by a power of 4.
Doubling the load of a vehicle or a tire or an �le produces 16 times the damage of the foremost
single load. MnDOT no longer takes into consideration passenger vehicles in its latest revision
to pavement design software. They just say passenger vehicles are negligible so they only
consider heavy vehicles in their design calculations at this time.
Mr. Kosluchar stated seasonal load restrictions also address heavy vehicles through Minnesota
statute. There is an exemption for certain refuse vehicles. Again, traffic loading during the
spring thaw results in five to eight times the amount of damage to pavement and that is often
because of subsurface moisture.
Mr. Kosluchar stated heavy loading concerns have been recognized by public roadway officials
for a long time. Multiple heavy vehicles are required to serve customers under the current open
collections system arrangement, and it reduces cost efficiency in maintaining the City's roads.
The intensity of loading has increased over the past decade to maximize refuse collection
efficiency on the hauler side. They want to get as much as they can with each load. Trucks and
their payloads have gotten heavier over the past decade.
Mr. Kosluchar stated excess trucks under the current system can consume the design life of the
pavement or reduce the length of time between major rehabilitation.
Mr. Kosluchar stated in August of this year, a final version of a heavy vehicle impact tool was
developed by Dr. W. James Wilde, P.E. He is with the Minnesota State University-Mankato.
The tool compares the impact of vehicle loading that was expected when the pavement was
designed to the impact of the vehicle loading including additional vehicles. The City actually
hired Bolton & Menk, Inc., a civil engineering firm, to use this tool and develop a model of
refuse vehicle impacts to Fridley's asphalt pavements. The model considers the impacts on the
City-maintained asphalt streets which are 95 percent of its local streets,not County or State. The �
model considers loading factors only. The model considers impacts of an organized collection
system for refuse with one hauler vs. the current system of five haulers.
Mr. Kosluchar stated the heavy vehicles model provides comparative predictions of traffic
loading and predicted pavement condition. Analysis was performed on 547 asphalt residential
street segments in Fridley. A comparison of one refuse vehicle trip per week vs. five refuse
vehicle trips per week was performed.
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FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8,2014 PAGE 17
Mr. Kosluchar presented a chart showing where the excess heavy loads consume over 10
percent and over 30 percent of the total ESAL's impacting the streets. Commercial areas were
not analyzed. They also did not analyze for the concrete streets in the southeast corner of the
City.
Mr. Kosluchar said the results of the analysis show that according to this tool the refuse trucks
and the current open refuse collection system consume a significant portion of pavement life
estimated by the model at 17.9 percent over Fridley's asphalt streets. T'his is all Fridley's asphalt
streets on average. This results in worse pavement conditions that require street resurfacing
sooner.
Mr. Kosluchar stated the heavy vehicles model estimates an excess cost because of heavy
vehicle loading under the current open collections system is just over$4 million over 20 years or
$208,000 annually. Over the long-term, savings through extension of paving life would be
realized if they were to convert to a reduced traffic scenario under an organized collection
system. They would not see savings in year zero or year one. The savings would migrate
upward. Generally over the pavement life cycle, what they would be able to do is extend some
streets and take them out of the reconstruct mode and come back to them five years later. They
would delay that major maintenance and, therefore, save those dollars. Those projects are
funded by a special assessment through benefitting property owners, and MSA has funds which
are State aid funds originating from gas taxes.
Mr. Kosluchar stated impacts of trucks routing into and out of a neighborhood are not
considered under this analysis. Impacts of starting, stopping, and turning vehicles (particularly
heavy vehicles) are not considered. Additional minor maintenance and changes to costs or
increased costs on the open collections system vs. an organized collection system are not
considered. Changes in the numbers of haulers or heavy vehicles are not considered.
Mr. Kosluchar stated it also does not consider how much of that potential savings could be
captured. The analysis gives them an ideal condition. Obviously they know with scheduling the
City's pavement maintenance and rehabilitation, that it could capture the majority of that savings.
The City probably would not be able to capture it all, because the City does not typically jump
around and do a small street segment in one corner of the community and then in another. The
City tries to combine them together for the economy but at the same time extend the life
significantly for all of the City's asphalt pavement.
Mr. Kosluchar stated he asked himself if this was consistent with estimated impacts on other
communities. Some estimates provided by other communities include Roseville estimated at
$188,376 per year, Oakdale estimated at $120,000 to $300,000 per year, and Robbinsdale at
$150,000 per year. Arden Hills indicated there was no savings. These amounts were developed
without the benefit of this tool but seem to be in the ballpark.
Mr. Kosluchar stated Fridley's asphalt pavements are significantly impacted by additional
refuse trucks operating under the current system. The model prediction is the most exact
prediction currently available for a Fridley street, and it shows opportunity for real cost savings
over the long-term. Moving to an organized refuse collection system would have a positive
impact by extending asphalt pavement life, resulting in reduced frequency of major maintenance
17
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8,2014 PAGE 18
and special assessments and local costs associated with construction funded by gas t�es and
other sources.
Mr. Kosluchar stated, finally, in order to maintain the Fridley's roadway assets in the most
efficient way possible over the long-term, organized refuse collection is superior to the current
open refuse collection system. Also, organized collection would provide the City and its
residents with significant long-term savings.
Councilmember Bolkcom said staff only mentioned the first year. She asked if thsy could talk
about the rest of the contract. There were some questions some people had related to fuel
surcharges, etc. The Agreement that was worked out is for seven years.
Mr. Wysopal stated the Agreement does call for a seven-year service term. That was at the
request of the haulers. They wanted to have as long a term as possible to recoup their
investments and capital equipment, etc. As they negotiated price, they saw the cost to the
customer has two components to it. The first cost component being the actual cost involved to
go down the street, collect it, and then go to the garbage dump. The second cost component has
to do with the actual tipping fee which is the charge from the ERG plant, the flow control for the
County of Anoka and what they charge per ton.
Mr. Wysopal stated they extrapolated how much garbage is collected by pound in a 30, 60, 90
gallon container. They came up with some costs and then tried to contain those costs as much as
possible. For that first component, the collection cost, they tied that to the CPI so that the
portion of the bill that is attributed to the collection can only go up on an annual basis as much as
the CPI goes up. The second part of the cost, the tipping fee, would only increase the property
owner's bill if there was a commensurate increase at the ERG plant. If there is no increase at the
ERG plant, the customer's bill would not go up for that particular cost factor. If there was an
increase of a dollar per ton,they extrapolate that back down to the actual per unit collection.
Mr. Wysopal stated the numbers, however, in the contract are the limits that can be charged. It
cannot be affected by any additional charges the hauler would want to include. Fuel service
charges that are common on most residents' bills would not be added to these numbers. Any
taxes that come up have to be applied. They cannot get around that. There would not be any
fuel service charges on these bills primarily because they looked at ways to identify what the
current costs are for fuel right now and is represented in those numbers. Any increases would be
a part of the CPI.
Ron Bloch, 5201 Pierce Street NE, stated he has been following this for the past year or so. He
is very much in favor of the Council going ahead. He is the block captain on his block. A few
years ago, he contacted everybody on the block and tried to convince them to go with a single
hauler. It made no since to him to have multiple trucks coming up and down their block. He did
manage to convince most people. It would be nice if those couple of people who wanted to stay
with their haulers would be willing to pay more when it comes time to redo the streets at an
earlier time. He has his doubts there.
Mr. Bloch stated they have been presented with a whole host of good reasons why they should
go ahead with this. The only reason he can think of opposing this is freedom. People like the
freedom to choose. The City does not give them the freedom to choose their fire service, police
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FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8, 2014 PAGE 19
service, or utility services. This service is like those services, which makes sense for the City to
go ahead and enact this plan.
Leroy Anderson, 7581 Alden Way, stated he is all in favor of this. A few weeks back at their
monthly meeting, Councilmember Barnette stated there is little disparity in what some people are
being charged so he looked into it. To make a long story short, he has the smallest garbage can
available and he is paying$30 more than his neighbor is paying for identical services.
3im Woodison, 6241 Sunrise Drive NE, stated he stands in opposition to the plan. He could
dispute more or less everything that has been presented tonight in one shape, form, or another.
However, the reason he is here tonight is more of choice. He believes they have limited choices
today in many things they do. This is one choice that they should keep.
Mr. Woodison stated he happens to be in the industry. He sells semi trucks. He disputes the
fact the trucks are loaded all the time. The wear and tear on the streets is progressive based on
the weight of the truck. He disputes the factors such as the green footprint. He made a note
during the comments about whether it is a function of the truck and the specking of the truck or
whether it is function of the provider. For example, if the truck is built wrong and the bridge is
wrong, you are going to have damage. But he would rather choose a waste hauler that is green,
natural gas, wave of the future. Diesel is going to be a thing of the past eventually. They did not
take into account the options that are afforded to thexn.
Mr.Woodison asked how they would compel a vendor when the choice is taken away from him.
While he is only one voice,he still has a choice. When Turner left, Comcast had no motivation.
You hear about it in the paper all the time, falling asleep while on hold. Seven years? He scoffs
at it. What is the life cycle of a truck? 30 years? What is compelling the vendor to keep
modern? What is compelling them to do anything?
Mr. Woodison stated he is with Walters. They could not always get the lid all the way down.
The previous provider, $20 surcharge. They had a choice. The customer service he received at
Walters was better than the previous vendor. He had a choice.
Mr. Woodison stated he shared with various members what Bloomington was doing and why
St. Paul was an abysmal failure. Why do they have to do what everyone else does? We do have
a choice, and he implores them to think hard about removing their choice and controlling as the
public the vendor instead of the City controlling the vendor. He is the guy writing the check. He
should have that choice.
Councilmember Saefke stated he was going to read Mr. Woodison's e-mail but seeing how Mr.
Woodison has already covered the material, he will put it into the record along with Mr.
Wysopal's responses to his questions.
MOTION by Councilmember Saeflce to receiving Mr. Woodison's November 27, 2014, e-mail.
Seconded by Councilmember Bolkcom.
UPON A VOICE VOTE, ALL VOTING AYE, THE MOTION WAS CARRIED
UNANIMOUSLY.
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FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8,2014 PAGE 20
Pat Delaney, 6250 Riverview Terrace, stated it is a no brainer that this project should go
through. The saving on the streets with not having the 5 or 6 trucks running around making
noise and pollution is ridiculous.
Eric Larson, 69th Place, stated he is not 100 percent opposed to the City's plan. It has some
merits. However, right now he currently pays $162 a year. Under the City's proposed plan,he is
going to pay $309. That is a terrible deal. He thinks they could have done a lot better
negotiating.
Mayor Lund asked what size cart he used
Mr. Larson replied he has a large cart and he has yard waste. The yard waste is included in that
figure. He has been getting a good rate for about five years. If someone tries to give him a bad
rate,he calls around and gets the best rate he can get.
Mayor Lund asked who his hauler was.
Mr. Larson replied Ace. He had Walters before. It seems they could do a lot better than the
numbers the City was given.
Councilmember Barnette asked what he was paying every three months?
Mr. Larson replied, the yard waste goes the whole season. He is paying $36.50 per yard waste
can for the entire season, and he is paying a monthly rate of$10.50 for a large can. He realizes
that is a good rate. They are almost doubling his rate with the plan. His yearly rate is $162. He
does not think the haulers are giving the City a good rate.
Mayor Lund stated they definitely agreed that was part of the premise of the discussions was if
there is an economy of scale,they would get a better deal.
Mr. Larson stated he might not even mind paying just a little bit more to having only one truck
coming. There is a benefit to that.
Councilmember Bolkcom asked what is a little bit more?
Mr.Larson stated a little might be$40 or$50,not$150.
Councilmember Saefke asked Mr. Larson whether he has a fuel adjustment column on his bill.
Mr. Larson replied,there is one. It is $1.70 a month.
Councilmember Bolkcom asked whether that was added onto the$162.
Mr. Larson replied,the$162 does not include that.
Richard Svanda, 1521 Woodside Court, stated he moved to Fridley in 1975. Shortly after he
moved into the City, he was appointed to the then Environmental Quality Commission and has
been there ever since. Shortly after he was appointed, he was assigned by the Commission to
represent the Commission at a City Council meeting where the curbside recycling program was
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FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8, 2014 PAGE 21
being debated. There was a decision made at that meeting to proceed with curbside recycling
which he views as an organized collection proposition, and they have the one hauler carrying all
the recycled materials. It has been very well run and very efficient and has served the
community and the residents very well.
Mr. Svanda stated the second gentleman talked about saving on his garbage rate. In 2010 when
the Commission sponsored public meetings on this issue, he started getting a feeling that maybe
he was paying a little too much for garbage and yard waste. He conducted a survey of the
Commission members and different neighbors who had different haulers than he did, and he
concluded he could save over $100 if he changed haulers. During the first year after that he
saved $114. Under the proposal here the yard waste rate is approximately what he is paying
now, and he uses the 30-gallon garbage can for garbage. He will save about 18 percent there
which will be about 38 percent.
Mr. Svanda stated he figures from the beginning of the formal discussions here in Fridley to the
organized collection, he is going to save about $150; and he considers that very substantial. He
had a number of points to talk about, but staff has done an exemplary job of their presentation
and the points he was going to make are points they already made with regard to increased
efficiencies. He is a retired civil engineer so the discussion about the wear and tear on roads
makes imminent sense to him. He has not reviewed the points to kind of validate the numbers;
but it makes intuitive sense to him that garbage trucks are having much more of an impact on the
roadways than automobiles.
Mr. Svanda stated in the Council's budgetary discussion they talked about the certain limitations
that are placed on the City through levy limits. It seems as though the money that is projected to
be saved on roadways, for example, could go a long ways towards addressing the financial needs
of the community and/or of moderating future levy increases. He would encourage the City
Council to adopt the necessary resolutions to make organized collection of garbage in Fridley a
way of life for the future.
Brenda Michnowski, 6297 Jackson Street, stated she had her current bill. She pays $9 a month
plus there is a fuel surcharge ($5.74 for three months) on there. She understands she is getting a
sweetheart deal, but she worked hard to get the deal. She called all the haulers and shopped for
the best deal. She does have the medium sized cart. Also, Fridley is an aging community with a
lot of senior citizens in it; and she happens to be very good friends with a senior in Fridley. She
calls the Star Tribune, Comcast, the haulers and she explains she has a friend who is a senior
citizen; and she is on a fixed income. Every one of those calls she makes, she get a deal for her.
There are a lot of other people in Fridley who could take advantage of that freedom.
Councilmember Bolkcom asked if she had yard waste pickup?
Ms. Michnowski replied, it is $73.50
Councilmember Bolkcom replied, so it is a little more than what is proposed here.
John Krack, 7629 Lakeside Road NE, stated he kind of has mixed thoughts about this. On the
surface it looks like a good idea but first thing he looked at was what the financial impact would
be. He expects to see his bill go up about 50 percent. He is currently paying $27 a quarter plus
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FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8,2014 PAGE 22
fees which are about $38 so about $35 per quarter for a medium-sized container, and they are
looking at going up to around $52.35 a quarter under the new proposal. As has been noted, he
fully expects the operators will be saving a lot of money in that they will be restricted by one
area. He agrees the City could have gotten a better deal from these haulers. He also has taken
advantage of the competition. He goes around every few years and tries to get the best deal.
That is part of the rationale for choice.
Mr. Krack stated he is with Republic right now and they will do a vacation hold for a minimum
of two weeks. This proposal limits it to four weeks' minimum. He thinks that has to be
reconsidered,too. If Republic can do it for two weeks, why can't the rest?
Mr. Krack stated he has the option of paying on-line by credit card. It is very convenient. He
does understand there is damage to the streets; but he questions the methodology used to
determine that. Out of$4 million plus savings or additional cost to the streets every 20 years, he
figures there is roughly 4,000 operations caused by those extra four trucks going through once a
week over 20 years, that comes out to about $1,000 damage to the City's roads per truck for
going down his street. That sounds awfully high.
Mr. Krack stated he also questions whether 20 years is a reasonably useful life. They moved
into their house in 1980. They had their streets replaced once in 2013. By these calculations, if
the street is good for 35 years, then they really got a bargain if it costs them $4 million over a 35-
year period vs. a 20-year period. The other method they use to compute the additional cost of
building the streets to support the additional damage comes out over $100,000 every 20 years.
Maybe they should look at making the pavement a little thicker and spending that $100,000
every 20 years and supporting the additional traffic that these trucks bring.
Councilmember Bolkcom asked if he has had his street resealed.
Mr. Krack replied, they come through every so often and do the sealing; but they are not
assessed for that. He knows it is a cost for the City; however, the City will pay for that anyway
as you get deterioration from weather and atmospheric conditions. The only assessment they
have had was last year when they dug up the entire street and replaced it.
Mr. Krack stated his big concern is the pricing and the inability, once this goes into effect, to
negotiate a better deal.
Jim Kiewel, 1627 Rice Creek Road, stated he believes the anticipated savings would be
$150,000 per year if they enacted this.
Mayor Lund stated it was like $208,000 and they took some other factors into consideration,
making it 75 percent of that, which is where the$150,000 came from.
Mr. Kiewel asked how many would be willing to relinquish your freedoms or your choice for
$150,000 a year.
Mayor Lund replied, they are just taking public comment. There are a lot of other factors that
were brought into that presentation.
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FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8,2014 PAGE 23
Mr. Kiewel said it was on the board. Anyone who did not receive a bill or missed it, that
amount would be certified to their t�es and/or to their utility bill.
Mayor Lund replied after 75 days, the haulers would pass the bill over to the City; and it would
be assessed on the property t�es.
Councilmember Bolkcom stated, similar to water or sewer or anything else they do not pay for.
Mr. Kiewel replied, he personally would not be willing to sacrifice his freedom for any amount
of money. He just would not do that. He thinks the definition of socialism is the combination or
control of the means of production and indushy. Any time a government entity comes to him or
the citizens here and states they are going to save them money or things are going to be
wonderful,they are adding a third party.
Mr. Kiewel stated he has a fundamental mistrust as they are probably aware of, of government,
of social engineering or controlling individual choices. It really is not worth sacrificing their
freedom for that.
Pam Reynolds, 1241 Norton Avenue N.E., stated she is vehemently opposed. She wants to
choose her own hauler. She wants to set her rates. She wants to be in charge of her own
household budget. She does not want government controlling anything that she cannot have
them control. One thing no one has talked about is that 70 percent of Minnesota cities have an
open hauling system. She is not going to cheer that they could end up becoming another of 20
around Fridley. Roseville Council just put it aside and said they are not talking about it. There
are so many cities right now that are jumping on the band wagon to go to open hauling.
Everybody started out with, oh, it is so noisy and so bad for the environment. They got down to
the only thing left to wave their flag for was the streets.
Ms. Reynolds stated the industry polices itself. Most of the haulers are going to trucks that burn
natural gas. The old behemoth garbage truck spitting and spewing the diesel fumes are not there
anyrnore. Her biggest issue with this is she wants to pick. If Walters ticks her off, she wants to
get on the phone, and she wants to get rid of them. If her rate gets too high, she wants to be able
to get a better one. By eliminating free market, you eliminate competition. By eliminating her
right to choose, you have eliminated her right to choose.
Ms. Reynolds stated the saving of such a little dab of money on streets, you have to do them
anyways. It is not like, for how many years, has the City been maintaining the streets; and all of
a sudden a light comes on and they say, oh my God, look at how much money they could save if
they took way the people's rights to pick their own garbage man.
Ms. Reynolds stated she does not see anything in the document that gives a senior discount or
anything that covers the senior who currently shares with their neighbor because they have one
little Target bag full of trash a week. She sees nothing in there that tells her who they are going
to control next. What if she has a private lawn care service, is that next? Because of this
proposal her garbage and yard waste service is going to almost double.
Mayor Lund asked what she was paying now?
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FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8, 2014 PAGE 24
Ms. Reynolds replied her bill is $39 something for three months. That is not a sweetheart deal;
she has been with the same company for four or five years. She switched because she was not
getting the service she wanted. If it is like anything else the City does, it will not enforce it so it
will not matter.
Ms. Reynolds stated Ms. Jones talked about how many code enforcement violations are based
on solid waste. At the EQEC meeting she pointed out 143 that were probably a real issue. The
rest of them are because someone leaves their garbage can in front of the house or they do not
store it inside.
Ms. Reynolds stated something else she noticed in the document, where is the control when it
comes to townhouses. She understands they operate under a homeowners association which is a
business pretty much, but on her street the townhouses are at the end of the street. Therefore, if
they still have their own garbage hauler, and the City assigns her one, she is still going to have
double. Most of the people on her street pretty much use two haulers. Sooner or later she is
going to get assessed for the street being done. If they noticed in Mr. Kosluchar's presentation,
the word, "predicted" is on the flag where it says, how much extra road life they are going to get
and how much less they are going to pay. Because nobody has figured it out. They have a chart
where you can plug in the numbers that tells her how much damage that truck is doing to my
street. On her street she sees kids out there, picking rocks out of the street, banging things, and
people dragging things.
Ms. Reynolds asked if they remembered Mr. Juaire driving the D9 cat down the street on the
metal runners. He damaged the street, and it has never been repaired because right where he was
running that thing is exactly where the surface breaks up all the time. They put a patch on it.
The road has not buckled or failed, and she still has probably 7 or 8 garbage trucks. However,
she thinks when they hit Norton Avenue they are pretty much empty as it is where they start their
route.
Ms. Reynolds stated the other thing is what happens to people who have long-term contracts
with a garbage hauler so as to maintain a price for a longer period of time. Or, a very unique
thing she came across is there are some people in this City who currently have a lifetime service
provided for free as a result of a buyout of a smaller garbage company by a large one. It kind of
sounds to her the City is going to say, it does not matter what deal you worked out with your
hauler or what kind of contracts you have.
Ms. Reynolds stated this is not necessary. She asked, if this goes through, then who is next?
The one thing Mr. Wysopal pointed out was that this is the only industry that does not pay to use
the City's streets in a franchised sort of fashion. They do pay wheelage taxes and those sort of
things. However, what about the post office? UPS? FedEx? The Post Office truck runs along
her gutter every day. She does not know what one weighs, but it drives in the same place every
day. Eventually the curb is going to give. Are they going to stop the United States Postal
service? It is wrong to mess with the free market system, and it is definitely wrong to take away
her right to achieve a better rate and maintain the budget in her household by using competition.
Ted Kueppers, 7361 Tempo Terrace, stated he appreciates what staff has prepared and agrees
with many of the items they have brought up; and he and his wife have discussed these prior to
this time and agree with them and support the organizational use of refuse hauling.
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FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8,2014 PAGE 25
Adam Hardy, 6845 Channel Road NE, stated he has a couple of concerns. A lot of them have
already been addressed by several members. He stands in opposition to the proposal. It is about
freedom and a lot people have already touched on it. That is one of the main reasons he opposes
it. According to the website, residents will save an average of 70 percent from current rates. He �
would like to know if those savings are going to be reflected on his taxes. '�
Mayor Lund asked how so, because he is getting a savings? The haulers are the ones who are
giving him a savings for those who will get a savings. Does he mean because of the wear and
tear on the streets?
Mr. Hardy replied right.
Mayor Lund replied, there would not be a cost savings. It means that they will not have to raise
the taxes or charge assessments according to some of these studies.
Mr. Hardy stated he would be willing to pay the assessment for the street because his freedom is
that important to him. The non-residential dwelling units, how is their refuse collected? Can
they pick and choose their own hauler right now?
Mayor Lund replied, under this proposal it is up to three units. The townhouses and mobile
home parks have single collection sites. A lot of them do not have the carts.
Mr. Hardy stated they are still able to negotiate with any of the five haulers in the City.
Mayor Lund replied correct.
Mr. Hardy stated he wanted to know why the City wants to negotiate on his behalf when he is
capable of doing that himself.
Mayor Lund replied, that was pretty clear in the presentation that it is about long-term cost
savings to one of the City's most expensive assets in the community.
Mr. Hardy stated the City thinks they can do a better job of negotiating his service than he can.
Mayor Lund replied, not necessarily. There have been some comments here by people who are
getting some pretty good deals.
Mr. I3ardy replied, exactly, and he wants to keep his pretty sweet deal if that is okay with the
City. Apparently not,because in this proposal they want to raise his rates.
Mayor Lund asked how much his rates would rise.
Mr. I3ardy replied on his current rate right now, it would probably go up about 20 percent.
However, apparently hearing from other people he is getting robbed on his yard waste right now.
His real concern here is his right is being taken away to negotiate his own services, his own
prices.
Norma Rust, 5735 Quincy, stated it sounds like a good deal; but she is opposed to it because it
takes away her freedom. She knows of previous neighbors who combined their garbage
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FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8,2014 PAGE 26
collection services because of the minimal amount of garbage they had and because of their
limited income. For her, if she were to come under this type of program, she would have a 100
percent increase in her garbage collection because she does not have garbage collection now.
She takes it to another place.
Mayor Lund asked if she takes it to her employer.
Ms.Rust replied another property that they have.
Councilmember Bolkcom stated but it would not increase. It is her understanding in the new
ageement, if Ms. Rust can show that she is taking it to her business because they know Ms. Rust
has an apartment complex, as long as she can show that and fill that out, she would not have to
have garbage collection at her home.
Mayor Lund replied it is the opt-out clause. �
Ms. Rust stated when a garbage truck comes to the City Hall, they should put this proposal in
there and let the garbage hauler haul it away once and for all.
Gary Alfernes, 570 Rice Creek Boulevard, stated he is all for it and the biggest reason for him is
to have less trucks going around the neighborhood. He has been hearing some people who are
getting some really good deals. He has been happy with his hauler. He is surprised at some of
the prices some people have been getting. He does not even know what his new price would be
but he is all for it.
Justin Foell, 6005 Gardena Circle, stated he is for organized collection. It has never really been
an issue of cost for him. During the summer when there is composting, nine garbage trucks
come by on a given day. Although looking at the presentation today, he pays $40 for
composting currently for the entire season. They apparently are not getting a good deal on their
composting. By inviting five trash haulers, they have kind of created this haulers union and it
seems like the contract term is really long. He was just wondering if anyone knew how the
contract renegotiation works and, if they cannot do it in like two minutes, it is probably too
complex.
Mr. Wysopal asked Mr. Foell is he saying that the seven-year period is too long and how does
the renegotiation happen?
Mr. Foell replied,his concern would be that if they feel they are not getting a good deal,they are
going to have to wait a really long time to try and get a better deal. Whereas, on their own right
now they can change whenever they want. He would think a yearly basis would be more normal.
Mayor Lund stated that is a little short-term for him. The biggest thing that comes to mind right
away is that it is a good thing for the haulers as they have a dedicated seven-year contract with
what they are proposing. With that they can go to the bank if they need to get new equipment,
new trucks, etc. It gives them some stability. Seven years is a long time though especially if
they are not happy with it.
Councilmember Bolkcom stated State Statute says they can go from three to seven years.
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FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8,2014 PAGE 27
Mr. Wysopal stated as to how the renegotiation would occur, they would put the haulers on
notice that it is time to renegotiate. They would be gathering data from every year on how things
are going. They would be looking at the other cities and what the prices are and go to the
negotiation table with direction from the City Council as far as what items they need to negotiate
on. It is completely up to the City and the haulers to decide if they want to go into an extension
of the term. It is not obligated. They would come into it just like they would on any contract
and say, okay, what do they need to work on. What needs to be better. What are our business
points.
Councilmember Bolkcom stated right now the proposal is for seven years. The renegotiation
would be somewhere maybe in the sixth year.
Joan Olson, 6320 Van Buren, stated she is a 48-year resident of the City. She remembered
when her street was rebuilt. Her 48-year old son was in kindergarten. Her street was sealcoated
only one time.
Mayor Lund asked, sealcoated or redone?
Ms. Olson replied,nothing.
Mayor Lund stated the sealcoat program is every eight years.
Ms. Olson replied, she has not seen one. She is opposed to it. She wants to keep her hauler.
They are very good. She uses the yard waste in the spring and in the fall. She has a lawn
service. Everything is mulched right back into the lawn. She does not have grass clippings. She
still pays for it but she does not need it. She lets her neighbors use it if they need extra. She
wants to keep what she has, and she likes her walk-up service.
Mayor Lund asked if she is disabled. He did notice in the contract that for those who are
handicapped or have some disability, they do have a walk-up service.
Ms. Olson replied, she has a disability and she has enough of a slope in her driveway that her
kids would have 16 fits if she tried to haul a garbage can down there.
Councilmember Bolkcom stated that would not change.
Mayor Lund stated he read in the contract they would still have valet service for those who need
it.
Ms. Olson stated she gets it for free from her hauler. She called several others and they wanted
$6 to $10 a month extra to do it. She is against it.
Brian DuRose, Gibralter Avenue, stated every year he calls up his trash hauler and he has not
paid for more than nine months of service in the last three years. He just changed haulers and he
got three months free because he asked for a better deal. What the City did was sent out a notice
to five trash haulers and said give me a bid, and every one of those people called each other and
said, okay, we are all going to bid $35. How many bids were different of the five?
Mayor Lund replied, that actually was not the case.
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FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8, 2014 PAGE 28
Mr. DuRose asked how many bids were different?
Mayor Lund replied,he did not know. He was not a part of the negotiations.
Mr. DuRose stated, another example is, he had Sirius radio. It was $86 for six months. He
called up and said, he would like a better deal, and they said they could offer $50 a month. He
said it was not good enough, tet me talk to your supervisor. Supervisor got on the line. He got
Sirius radio for$25 for six months. It is their fault they do not negotiate with their trash hauler.
Councilmember Bolkcom said she never thinks of it.
Mayor Lund stated this item may come up at the next Council meeting. They need to take this
input. He does not know if they will even make a final selection at the next meeting. They need
to discuss the input they have received tonight. It is a worthwhile venture. They should be
looking at these things.
Mayor Lund stated governments get criticized often and maybe rightfully so about spending
t�payers' money and maybe not so wisely. On the alternative side it is only right to look for
alternatives to save money, and that was the premise. They never did look at just going to one
hauler. Why should they not be getting a better deal like some of them are getting. He is certain
they would have gotten a better deal in the negotiation if they had gone to a single hauler. They
felt that they have had five haulers in the City for a number of years, and it is kind of a nice deal
for them to know they do not have to sit there and fight each other for trying to steal the other
guy's business. However, they also do not lose business this way.
Mayor Lund stated he heard a lot of positive things. Staff has done a lot of work and
negotiations over the last 11 plus months. The EQEC looked at this almost three years ago.
They are listening to people, and the fact is, it was citizen input that started this whole thing three
years ago.
Mayor Lund stated the one thing that is prevalent here in this room is cost and probably No. 1 is
freedom of choice. Understand that there is always a give and take in negotiations. He asked
they be given time for them to weigh in on this.
Councilmember Barnette stated he very much encouraged people to call them and e-mail them.
They need to get all those opinions. That is why they got elected is to serve the public.
Councilmember Bolkcom stated she just had one e-mail in support of it from a couple who
lived over on Alden Way. Another one on her own street, and another one from a gentleman
who lives on Riverview Terrace supporting the project for some of the very same reasons that
were part of the staff presentation.
Councilmember Bolkcom asked, going back to if there is a renter in a duplex, and the renter
does not pay for their garbage, then it goes on the utility bills for the actual homeowner of the
property, correct?
Ms.Jones replied correct.
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FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8.2014 PAGE 29
Councilmember Bolkcom stated on Page 82, she does not undersatand (H). It says the City
shall not amend the City Code during the term of this Agreement in any way that prohibits,
frustrates, or makes it economically prohibited for a hauler to maintain his Class I license unless
required by state or county law or mandate. What does that mean?
Mr. Wysopal stated that is telling her the concern from the haulers is that they have this
Agreement and then the terms of the Agreement are changed via an ordinance, and they are then
without the customers they thought they had. This Agreement ties the performance of the license
to the ordinances, etc. It is a protection that they do not go and do anything that would violate
the terms of this Agreement through an ordinance as opposed to changing the Agreement within
the seven-year period of time.
Councilmember Bolkcom stated she and Mr. Wysopal have discussed this. It actually says they
can pick up garbage from 6:30 a.m. to 8:30 p.m. but then it says in the Agreement, if you have
not had your garbage picked up at 4:30 p.m. (a lot of people do not get home until after 4:30).
The way she reads this is that if she does not get home unti15:00 p.m. she can call her hauler and
leave a message. She might not get it picked up the next day, but they have to promise it by the
following day. In the meantime she should not get into any trouble for leaving her garbage out
there, correct?
Mr.Wysopal replied correct.
Councilmember Bolkcom stated, on Page 86, something very simple but under 18(b), the last
sentence, is the word, hauler shall notify the City of said purchase or acquisition and provide the
City with "contract" information for the new party." Should it be contact?
Attorney Erickson replied, she believed the word should be "contact."
Councilmember Bolkcom asked Attorney Erickson is it not true in the way the State Statute is
that they could not really just pick one hauler, and say, okay, you are the magic person. They
would have to negotiate with all five of them.
Attorney Erickson replied, the statute requires that you have a mandatory negotiation period
with all of the haulers. You have to have a minimum of 60 days. Essentially the State carves out
an exception that requires the City, before it goes to look at going out for an RFP from a single
hauler, that it sit down with the currently licensed haulers in the City. It allows them an
opportunity by statute to preserve their market share.
Councilmember Bolkcom stated tonight it was mentioned that seven years is a long time. This
is speculation on Mr. Wysopal's part but what would happen if it were only for three years since
there were concerns voiced here related to cost. For one thing, could they go back and negotiate
a cost? Maybe not as high as here. Maybe after three years look at it and see if it makes sense. It
sounds like Mr. Wysopal had really good negotiations. The haulers need to make money, too,
and have to pay their employees. However, what if it was only for three years and they look
back and investigated whether it made sense.
Mr. Wysopal replied, when they completed negotiations, both the haulers and the City, himself,
said we need to have an agreement that we can live with if it is approved and without major
change in the contract itself. He would constitute the change in the term as a major change
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FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8.2014 PAGE 30
because the pricing was reflecting on that. That is not saying that they were very open to small
detailed types of things that might need to be relooked at but they felt very good about the
proposal. From the City's standpoint, the seven-year term was a reasonable term and it has
annual meetings involved so that service requirements can be addressed. He thinks this one
seems to go more towards the price piece which concerned him.
Councilmember Bolkcom asked what it meant.
Mr. Wysopal said his concern is that this is a foundational issue. They would be kind of
negotiating back from the Council table. That is not saying that it cannot be done but, as they
left negotiations, they said this is the best the haulers can do, the best the City is expecting, and
they would not be coming back to negotiating the significant terms and conditions of the
agreement.
Smaller things that have been brought up tonight certainly can be talked about,but the term piece
is a major thing. It is not to say they could not go back and say we want to talk about it because
there is an issue here. However, it sounds like they are going back to negotiate the price of it.
Councilmember Bolkcom stated they heard from people who were against it, and their concern
was that it was taking away their ability to talk to the hauler about complaints. Even if they do
not change the price but they only do it for three years instead of seven years, does that make it
more palatable for people who are against it?
Mr. Wysopal stated they can explore that with them if that is the will of Council. They just I
want to be careful about trying to negotiate too much from the Council table. If the price is the
issue, that should be talked about publicly and go forward with it. One thing he has learned
about the haulers in the last 11 months is they are excellent companies and they are excellent
people. They work hard to do the service they have and to earn the service they have gotten.
They are reasonable people and, if there was a reasonable explanation of why seven years or
some other term would be better,they would be willing to at least sit down and talk about it.
Councilmember Bolkcom stated way the contract reads is, if you sell your house your yard
waste goes away. Someone else who comes in your house does not get that yard waste. If she
pays that $80 and goes from Hauler B to Hauler C, does that Hauler B pay Hauler C so that she
does not pay the yard waste again?
Mr. Wysopal replied, from what he understands from the haulers is that, in their current
practice, if you are under an open system, if you were to move, they would honor your previous
payment to wherever you move if you use them as a hauler; but the new homeowner would not
be able to take advantage of what you paid for already. Under the proposed Agreement that
would be the same.
Councilmember Varichak asked how they would determine if the haulers are meeting the
requirements.
Mr. Wysopal replied there are a couple of ways. One is in just the continued relationship that
they have with the haulers. He thinks they are in good stead with them now to be able to have
that relationship to say that we got these calls. This is an issue and let's work on it. Remember
the first point of caller contact is to the hauler itself. If the resident feels they are not getting
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FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8,2014 PAGE 31
good service, they can call the hauler right away. If that is not being addressed, the resident can
call the City who would work with them to remedy the issue. There are sections in the
Agreement that deal with this. The majority of what they would be doing is having the ability to
work specifically with that hauler and say, this resident is having issues, here is what they are,
let's get them worked out. They would discuss issues at the overall performance review on an
annual basis the haulers.
Councilmember Varichak stated if the billing goes delinquent, then the City takes over. Have
they estimated how much staff time it would take?
Mr. Wysopal stated their estimates are it would be a very low amount of time. It would be
higher in the first year of operation and then go down based on experiences other cities have had
with this similar type of thing. On an ongoing basis they would be able to do it with the existing
staff in the Finance Department.
Councilmember Varichak asked can they even estimate the amount of delinquent people who
do not pay their utilities, how many would not pay their garbage fees; and what does that equate
for the savings for the streets?
Mr. Wysopal replied, their estimate on the high side was about $90,000 a year that people
would not be paying. The City would be assessing fees on top of that to recover it. Therefore,
the City's time cost of money would come back to it and then some of the fees.
Councilmember Bolkcom stated just like if someone does not pay their water bill, there is an
administrative fee.
Councilmember Varichak asked does that come back to the City now and go on the tax rolls.
That just goes to the hauler,right?
Mr. Wysopal replied, that is correct. If the hauler does not get payment, they just stop servicing
that unit. That is the common practice.
Mr. Krack stated the point on the delinquent payers is well-taken, but couldn't that be handled
under the existing program by inviting the haulers to turn that complaint over to the City and
then have the City put it through the collection process?
Mr. Krack stated the whole process looks like the situation is where they got together with the
haulers and put together the design and poured the concrete which is now hardening, and now
they come out to the public and ask for suggestions. The suggestions they offer require some
major changes to the deal they cut with the haulers. They sat here a year ago on December 2 and
listened to a presentation that took absolutely no comments from the public, and nobody even
considered the cost which is the concern of many of them and the choice. It would have been
very helpful if they would have had some kind of a session mid-Fall to say what are your big
concerns on this.
Mayor Lund stated they have to understand that he and the Council received this Agreement the
same time it was presented to the public. They were not a party to those negotiations.
Mr. Krack stated who negotiated it then?
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FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8,2014 PAGE 32
Mayor Lund replied the City Manager met with the haulers on 11 different occasions during the
process.
Mr. Krack stated then maybe the City Manager should have had some meetings with the public
to get their suggestions.
Mayor Lund stated they could have made comment at any time via e-mail or letter. Now he
finds out that some people have some really awesome deals.
Mr. Krack stated they did not know a11 of this was going on until they got notice of the
information session.
Councilmember Bolkcom stated she would like Attorney Erickson to speak on the whole
process of what State Statute says they can and cannot do.
Attorney Erickson stated the Statute Statute, 115A.94 sets a mandated process for organizing
collection. It is the sole process that exists, and the City has been following that process. To Mr.
Krack's point it is kind of backwards to the extent that the Statute mandates that you go and meet
for 60 days at a minimum with the haulers and then you come forward with a proposal. There
were many meetings at the EQEC level where citizen input was sought, and she believed was
provided, as to what were priorities, concerns, etc. The way the Statute sets forth it is kind of a
different process where there is negotiation that precedes the presentation and public hearing.
And that is a requirement and the legislation was just changed in 2013 to create that process.
That was done at the legislative level with lobbyists on both sides of the issue, the cities have
their lobbyists and the haulers have theirs. There is give and take in legislation.
Mr. Krack stated then there needs to be a provision in the process which they are having right
now with the public hearing where the public can comment but then they have to have the
provision where they can go back and renegotiate with the haulers. The concrete has been
poured. They heard Mr. Wysopal say it would be almost like tearing it apart and starting it over
again to go back and try and negotiate some of the major terms of this deal.
Attorney Erickson stated there is nothing that prevents the City from doing that, but the results
of the negotiation sessions were what the haulers believed to be their best offer. Otherwise, they
are going to have a constant pick, pick, pick at the issues that they may never get a resolution.
The intent of this is to solicit a proposal from the haulers and then have this open meeting.
Otherwise there could be ongoing public meetings. The intent is that the parties walk away with
a pretty firm proposal.
Mr. Krack stated he expects the haulers would say they don't want to put anymore time into
this. They are happy with the situation the way it is now. His big concern is the public for the
most part is left out of the decision-making process until tonight.
Attorney Erickson replied, again, she would say the Statute contemplates that City staff goes
and discusses this with the haulers and then brings the haulers' proposal to the City Council and
the public for comment. That is Subdivision 4(d) and it is a relatively new provision.
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FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8. 2014 PAGE 33
Mr. Wysopal stated the other piece of this is answered through two things, one, what if that
price was one of the components that the Council directed himself and the staff to negotiate
about. It was one of the items. It was not the highest item. The highest item had to do more
with the street impacts and the cost that the City was incurring on these roads. And then the
environmental and safety issues and price was one of the issues.
Mr. Wysopal stated, as to the second part of his answer related to what are the next steps? The
next steps are the Council can accept the Agreement and execute the Agreements and move
forward. The other option would be for the Council to reject the Agreements and end the
process. The third option would be to reject the Agreements and create a committee (this again
is out of the Statute the City Attorney talks about) by the Council by whomever they choose.
Whereas, the negotiations that took place were between the haulers and the City in a closed
environment. Again that was specified by Statute that is completely different than how they
normally do business.
Mr. Wysopal stated the haulers had at risk if they chose not to be a part of that. They could lose
their market share and be excluded if they chose to exclude themselves. They all chose to
negotiate in good faith. They worked on all the information that was presented. And it was not a
bid. They did not say, okay, you five haulers send us your best bid. It was we have to sit down
and say what are prices; and they worked together to figure out what their average market rate
was and, based on what they considered their market rate numbers, the number that was
negotiated is about 17 percent below that. If the Council were to decide to go to a single hauler,
then they would say, okay, everybody, here are our specifications, give us a bid and that drives
the price down.
Mr. Wysopal stated comparing Fridley's prices to the most recent city to do this process -
St. Anthony was the first city they were aware of to go through this process and successfully
negotiate an agreement. Fridley's numbers are right in line with theirs. However, if they
compare their numbers to Blaine which has a single hauler based on a one bid price, these
numbers are higher. They are probably more in line with what are the sweetheart deals they
heard today. Again, that was not the direction they were given.
Mr. Woodison stated he would take his opposition off this proposal if they could somehow go
back and say, a shorter term, for the very reason Councilmember Bolkcom spoke of it. He is
willing to give up his freedom for three years. No one disputes they are trying to do the right
thing. They do not want these haulers to be relalced. Seven years is relaxed.
Councilmember Bolkcom asked with Councilmember Barnette asking for persons to call him
and e-mail him where do those comments go? Why close the public hearing tonight? She asked
how long was St. Anthony's agreement for?
Mr.Wysopal replied, five years.
Councilmember Bolkcom asked what have the agreements been for some of the others who
have gone to organized hauling in the last couple of years? How long are their agreements?
This is the first night people have really received a chance to give them their input. She would
like to continue the public hearing so they can pursue some of these other options.
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FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8.2014 PAGE 34
Mayor Lund stated it was his intent to close the public hearing and then have discussion after
the public hearing because there are sufficient outcomes from this that she and others have
expressed.
Councilmember Bolkcom asked Mr. Wysopal when he said that the percentage of people would
save 17 percent, where did that come from?
Mr. Wysopal replied, that was from the number the haulers represented and they verified with
actual bills, statements, from people. They have to understand if you take five different haulers
and figure out what their average cost per level of service was and they verified it the best they
could and said, yes, that is pretty accurate.
MOTION by Councilmember Bolkcom to continue the public hearing to December 22, 2014.
Seconded by Councilmember Barnette.
UPON A VOICE VOTE. COUNCILMEMBER BARNETTE,VARICHAK, SAEFKE AND
BOLKCOM VOTING AYE, WITH ONE ABSTENTION, THE MOTION WAS
UNANIMOUSLY PASSED.
NEW BUSINESS:
16. Resolution Approving Adoption of a Master Plan for the Northstar TOD Area as
Prepared by HKGI.
Ms. Jones stated they have asked the City's consultants to come in and present the final master
plan to them for tonight.
Jeff Miller, HKGI, stated Brian Harjes is also here from HKGI. Mr. Miller is a planner and Mr.
Harjes is a landscape architect. They have been working with the City since February on this
and they have met with the City Council three times during that process in developing the plan.
He is aware they have seen a lot of this information. They have a11 the important components to
present, and they are open to questions at the end.
Mr. Miller stated TOD is transit-oriented development and TIF is t� increment financing.
They will see a lot of references to these as they go forward. The purpose of this master plan is
to provide guidance for the use of the transit TIF funds since they can only be used for transit-
related improvements. It is also meant to entice private redevelopment by showing parks,
improvements, and access to transit that should be amenities for redevelopment when it occurs in
this area. It is also meant to guide future TOD applications from developers by proactively
showing them what the City has preliminarily approved and is hoping will happen in this area
but is not meant to open what the redevelopment looks like.
Mr. Miller stated just as a reference the background planning of this process was the TIF district
which was established in 2008, the overlay district in 2011, the East River Corridor Study in
2012, and then the Islands of Peace Park Plan the City undertook the process for that last fall and
then Anoka County subsequently also planned it since it is a regional park managed by the
County. The goal of the master plan is to build upon previous plans: Islands of Peace Plan
which they saw a year ago for the first time; leverage amenities which include the river, the parks
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FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8.2014 PAGE 35
which are pretty hidden in this area, the school; and the transit station among other things
probably. Also, to tie those things together to create a place around this transit station area.
Mr. Miller stated another goal is to reconnect the community to the river in the Islands of Peace
Park. Also to plan and characterize infrastructure improvements like roadways,bike trails, storm
water planning in the future, and those sorts of things. Lastly is to identify potential funding
opportunities and partnerships. One of the best ways to attract win funding and grant money is
to have a really good plan that you can use to show that you know what you want for that area.
Mr. Miller stated, as to project involvement, there were three meetings with the HRA and the
City Council over this process. There were two open houses and then staff inet with many
stakeholders including property owners in this area, the school district, the County, Metro
Transit, etc.
Mr. Miller stated as to the first key component of the plan they would be adopting, the first one
is the land uses and streets. The key features include a mixed use area at the corner of Interstate
694 and East River Road, the John Allen site, which has already been approved. They expanded
and enhanced Islands of Peace Park on the west side of the district, a new loop parkway better
linking the park and existing and future housing to East River Road, and redeveloped housing
along that parkway and across from that park within walking distance of the school and to the
transit station as that area redevelops over the coming years. Also, redevelopment within the
underused transit park and ride lots, both east and west of the station. They met with Metro
Transit and they are very open to looking into that process. Industrial and commercial
businesses are anticipated to stay in place on the east side of East River Road.
Mr. Miller stated, lastly, there are three traffic signals shown on the plan including an additional
one at Island Park Drive that they have discussed with the County; and they would be open to
that when there is enough redevelopment and traffic to warrant that.
Brian Harjes, HKGI, stated he just wanted to touch briefly on appeal of the redevelopment
concept. He presented a graphic to kind of illustrate what could be developed in the future. It is
intended to show footprints and kind of take that next step beyond the land use plan to kind of tie
the urban design features of the district together. What they see are building footprints. It may
not develop exactly like this, but the intent of the ordinance as it is written today reflects this
kind of development character with buildings towards the street. Parking, organized away from
the public view either in surplus lots or a potential for structured parking. They can see
predominantly in these plans on the west side of East River Road it is a housing focus, a naxrow
area right at the 53rd Street intersection a potential for some mixed use in that area.
Mr. Harjes stated they have two numbers here. Really one to illustrate the growth of net
housing units with or without the southern leg of Georgetown. A lot of the focus of potential
redevelopment maybe in the first ten years or so of the plan. It would be north of 57th Avenue
all the way up to the school. In that zone the transformation could occur where they would have
about 650 to 800 units and then a transformation even much more long-term beyond that about
950 to 1,150 housing units in that area for net growth.
Mr. Harjes stated projected office development is really focused at the John Allen site towards
the southwest corner of that. The light industrial development is another component of the John
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FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8.2014 PAGE 36
Allen project. There is a small portion along Main Street, just southeast of the TOD station.
Also, some potential retail in kind of a one-third, two-thirds split of maybe some commercial pad
infill sites near the Home Depot and others, as well as some of that opportunity for a little mixed
use retail right at the 57th Avenue intersection.
Mr. Harjes stated some of the key features are the pedestrian/bike network. There is the Main
Street sidewalk lanes. Those have been improved. There is additional funding being prepared
for a bridge over I-694. A lot of the plan illustrates trail connections towards the school with the
safe routes to school program as well as extensive trails through Islands of Peace Park both kind
of on top of the bluff where the new park area would be and as long as some enhancements to the
trails down along the riverfront, the natural areas of the park. As well as the strong activity along
the East River Road corridor itself, both from the station all the way to the trail that exists along
694.
Mr. Harjes stated a lot of talk early on in the process was the about the potential for a roadway
connection from 57th Avenue. SRS Consulting Engineering Company who was a partner with
them on this project looked at that extensively and just concluded the cost to be too prohibitive at
this moment but to allow for that planning to still continue as ongoing discussions both at the
railroad and adjacent properties may open the opportunity for that in the future. However, the
plan does reflect the opportunity for near term pedestrian crossings over that rail line as an
opportunity for a bridge, local connection there as well.
Mr. fIarjes stated street design concepts was another good point that Mr. Miller talked about.
There are four main streets they really focused on trying to develop the design character for each
of these. The East River Road section really was just continuing the same vision if you will that
was set forth in the East River Road master planning that was done in 2012. They are carrying
that forward and trying to merge and blend some of the same design ideas between other key
streets such Main Street, the new parkway street, as well as the residential parkway.
Mr. Harjes presented a graphic from the East River Road plan and the top section shows more
of a central component of the street where you may have a treed boulevard as well as a treed
median. The lower section shows the extent near the intersection where you may have turn lanes
and bus pulloffs for a transit facility. It is a little wider section of that area to accommodate those
turning movements. They have kept that in play and bringing that thinking throughout.
Mr. Harjes stated the Main Street section on the right shows some of the recent improvements
with the bike lane and the sidewalk components with the light industrial being to the left side of
the graphic and the existing residential to the right side.
Mr. Harjes stated two new features involved really that little mixed use section along 57th
Avenue along 57th Avenue from East River Road down to the parkway. The graphic on the left
shows a plan and then a corresponding section below it. Envision the river on the north side of
the graphic, just beyond the park, East River Road, just off the map to the south. This street
would have the ability of on-street parking to serve some of the commercial businesses. It would
have a center median with kind of a high quality storm water treatment and natural open space
amenity to draw people from East River Road down towards the park in that location. In
addition to that they are tying in bicycle facilities along there as well. So a combination of
striped on-street bike lanes that lead to a green painted identifiable connection all the way into
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FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8,2014 PAGE 37
the park. It is a combination that can balance transit bike commuters at the same time as
recreational bikers that want to get to the park.
Mr. Harjes stated the other image on the right is the parkway section which really tries to create
more of a residential character with the housing facing the park and provide on-street parking as
well. A couple of images that were shown at the open house, and just for reference, this is to
kind of give everybody of the flavor, the potential character for development in these areas. He
showed the Islands of Peace parkway section. The small segrnent that could potentially have a
mixed use component from 57th Avenue looking to the west, down towards the park in East
River Road. In the far distance of that elevation they can see as they always talked about as a
Park Centrum building, an opportunity to make that maybe a park gathering space that has a
rental lease tenant which could be a restaurant or a small service use. Four to six-story housing
lining the street there.
Mr. Harjes stated, moving up the road a little bit to the next parkway access, a little lower of
character of building height away from kind of that mixed use street but again allowing the
combination of pedestrian and bicycle enhancement along the corridor integrating bus stops in
that area as well.
Mr. Harjes stated on the other side of the railroad tracks at the station, looking back along 61 st
Avenue to the west and towards the transit station in the distance again, that housing coming
towards the street, enhanced streetscape and characteristics along the boulevard parking and
including bicycle activity as well.
Mr. Miller stated the last part of this is the City's TOD overlay district which the City has in
place already, has landscaping and streetscape standards in it. One of the reasons for working on
this project is to specify what those standards should be. What is shown here is the character of
the streetscape elements that would be amended into the zoning district after this process. This
project is not going to change in the zoning district but as a follow-up to this project. This would
get incorporated into the zoning for this area. It shows a bench, trash receptacle, bike rack,
planters, bollard and aerial lights, the character that they would want to have in that area as
redevelopment comes to this area. If they remember the last session they had, they looked at
some different options and got the City's preferences in this area.
Mr. Miller stated there is the complimentary street light which is a down-facing light even
though it is a more contemporary light. It was preferred the benches were not wood so he
showed metal benches and waste receptacles. They feel these are complementary and there is
the design element that have the organic or natural features and then a bench with a similaz style
without the images. He showed metal bike racks which would be in this area and metal movable
planters would be an option. One of the things in the overlay district is that if there is not enough
space on some of these sites to meet all of the landscaping tree requirements there is some
flexibility in the ordinance to replace it without things like planters,planting beds.
Mr. Miller stated another piece of it is in the overlay district it talks about sidewalks and
pedestrian pathways, that they should look different than the street and be called out. There is
the option to do scored concrete or colored concrete with patterns or concrete pavers and that
would include pedestrian crossings of driveways as well.
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FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8, 2014 PAGE 38
Mr. Miller stated the ordinance does have standards for fencing and walls and railings. This is
specifying what is desired in that area. He should one of the substitutes for if it is difficult on the
site to fit all the required trees, there is flexibility in the ordinance that the developer could do
public art or land mark signage or way finding is also something they wanted in this area. He
showed the planters that were an option instead of trees or there is one you could actually put
trees in there as well.
Mr. Miller stated, lastly, they talked about the stormwater. He showed tree trenches which
instead of having the traditional pond which takes up a lot of development space, the idea is to
have this area look at more innovative ways where there are tree trenches or green roofs or
underground cisterns. There are about 7 or 8 ways you can handle stormwater including these
two. That would be brought into the ordinance as well.
Mr. Miller stated the scope of the project was for them to recommend changes to the ordinance.
The recommendations are that the overlay district refers specifically to the TOD TIF district
master plan and what is in there. Add a requirement for a streetscape plan from developers.
Sections that are not in overlay district today that should be added really to benches, waste
receptacles by racks and bollards, add a table with design specs for those features which gets into
who manufactures them and how to contact them, the materials, etc. Lastly, add other
regulations related to varying materials, colors in this area, way finding signage pavements, and
then storm water.
Ms. Jones stated as far as kind of wrapping up this project, they are asking for the City Council's
approval for this master plan. They do need to complete this project by the end of the year.
They are looking probably as the next step to this doing some amendments to the City's TOD
overlay zoning district to add some of these specifics they had given the City for streetscape.
The whole idea of that overlay district and the language that is in there now is that the City
would eventually do that but wanted some time to work on a complete plan to go with that. They
will likely also want to complete a minor comprehensive plan amendment to incorporate these
documents and drawings into the City's comprehensive plan as well as incorporating some of
these drawings they would like to have as a guide in the comprehensive plan.
Ms. Jones stated they are already looking at some funding opportunities because of the Islands
of Peace Park being next to the river which is a national park and does open some opportunities
for the City particularly since the MRT bike trail recently got designated as not just a national
bike trail but a national water trail as well and there is some new funding that is expected to
come along related to that. Staff is looking at some federal grants to possible use as leverage to
get some state money or vice versa, use some State DNR grant trail money to generate some
federal money and looking at some opportunities and where they can push through grant funds to
do some of these trail connections rather than waiting for tax increment financing funding
through the City's capability with the transit TIF Fund in the future. They will be looking at that
and of course using this plan as a guide for those grant applications.
Councilmember Bolkcom stated the space ship lights are kind of wild to her. That is just a
thought and they do not have to go with quite that design. She likes the idea of the smaller lights
but they would get dated quick. It was a great process. The attendance at the neighborhood
TOD meetings were not huge but at first the people who came were a little leery but they came
back and were incredibly excited. The ones she spoke with were very happy there was going to
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FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8.2014 PAGE 39
be some new development in that area. Some of the housing,the apartment complexes, are some
of the worst ones in the City as far as maintenance and that type of thing. It would be nice to get
rid of some of the stuff on East River Road, all the signs, etc. and have some better streetscape
which goes along with the whole master plan they had a few years ago. People wanted to have
more kind of a parkway.
Mayor Lund stated he is not necessarily keen on those lights either but he does like the idea of
the downcast.
MOTION by Councilmember Bolkcom Adopting Resolution No. , the Master Plan for the
Northstar TOD Area as Prepared by HKGI. Seconded by Councilmember Saeflce.
UPON A VOICE VOTE, ALL VOTING AYE, THE MOTION WAS CARRIED
UNANIMOUSLY.
17. Approve Agreement between the City of Fridley and Pariners & Sirny, LLP, to
Provide the Design Services for the Renovation and Addition to the Interpretive
Building at Springbrook Nature Center(Ward 3).
Jack Kirk, Director of Parks and Recreation, stated he is here to talk about the architectural
design services for the Springbrook Nature Center project. The SPRING project committee
which is what they call the local group that is working very hard on helping with the design were
very involved with reviewing the proposals and also the interviewing of three architect firms for
this project. The three firms which were interviewed were Perkins and Will; Rafferty, Rafferty,
Tollefson and Lindeke; and Partners & Sirny. While they felt that all the firms were very good
and they did a nice job in the interview process, the committee felt that one firm did stand out
and was the best fit for the project that is on the table right now. That firm is Partners & Sirny,
and the lead architect with that firm is Paul Anderson.
Mr. Kirk stated Partners & Sirny demonstrated through the interview process a really good
understanding of the overall SPRING project and they come with some excellent experience in
very similar nature center interpretive building projects. They put together a really good team
for the building design, landscape architecture, the structural, mechanical, the electrical
components of the project. They have lined up Hoisington Koegler Group to provide the
landscape architect services; BKBM Engineers to provide the civil and structural engineering
services; and Engineering Design Initiative to provide the mechanical, electrical, and fire
projection design. All of those firms have really excellent reputations for doing really quality
work.
Mr. Kirk stated something that really impressed the committee was the previous successful
nature center buildings that Partners & Sirny and the architect, Paul Anderson, have been
involved with. They designed the Lebanon Hills Nature Center in Eagan, Richardson Nature
Center in Bloomington, the Interpretative Center at North Mississippi Park in Minneapolis, the
Midwest Center for Wind Energy in Lincoln County, the McCall Pond Environmental Center in
Savage, and the St. Croix Natural Scenic Riverway visitor center in St. Croix Falls.
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FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8 2014 PAGE 40
Mr. Kirk stated Partners & Sirny is ready to begin work with us upon approval of an Agreement
and they expect if the Agreement is approved they would begin working with them this week. It
is his recommendation that the City Council approve an Agreement with Partners & Sirny to be
the architects to provide the design services for the renovation and expansion of the Springbrook
Nature Center interpretative building.
Councilmember Bolkcom stated on the first page, on page 217, it says Partners & Sirny's
representatives at the interview were clear. Is that what he meant to say?
Mr. Kirk replied,he believed they were clear.
Councilmember Bolkcom stated she found this Agreement really hard to read. You had to flip
back and forth,things were crossed off. Where does it say that the B3 is included in here?
She is concerned about the cost and there was a lot of discussion about that. Also, on page 44, it
talks about liability, $2 million, and workers' compensation is $100,000, and professional
liability at $500,000 but over on which is page 6 of their Agreement they have, and maybe it is
on there, page 242, 2.62 it says automobile liability and there is no number in there. Is 2.24 null
and void? It is only everything on these other pages, is that the Agreement they are supposed to
be looking at? She asked if Mr. Kirk understood her question?
Mr. Kirk replied, sorry, he did not think he did.
Councilmember Bolkcom stated there is a whole bunch of information starting on page 219 and
it talks about additions and deletions and the document has important legal consequences. Is
everything up to page 242 just null and void?
Attorney Erickson stated she has not reviewed this contract. She saw it for the first time today,
but what they have used is kind of a standard document that is used in construction industry. It is
an AIA document. Having prefaced with her experience with the document and first seeing it
tonight, it looks to her like what they have done is, starting on page 245, prepared a list of
changes to the standard contract. It is not necessarily part of the contract from what it is saying
on its face.
Councilmember Bolkcom stated on page 6 it says 2.61. There is $2 million there. Is
everything up until there all part of this contract?
Attorney Erickson stated the way she understands it is, basically it is like looking at a redline.
The redline is essentially an addendum. It shows you what they have changed. The items that
have changes are the ones with the lines on them, so 2.61 was changed, 2.64 was changed, 2.65
was changed.
Councilmember Bolkcom stated but 2.62 has no number.
Attorney Erickson replied, right it has no numbers. The way she would interpret this is that
there is no obligation to provide any automobile liability coverage.
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FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8,2014 PAGE 41
Councilmember Bolkcom asked, who is paying this liability? Are they paying or is this
something the City incurs?
Attorney Erickson replied, it is a requirement that the architect provide this kind of coverage.
Councilmember Bolkcom stated so 3.13 has been changed. Where is that in that paragraph?
Attorney Erickson replied, it is crossed out so it is deleted so you would not see it in the
contract.
Councilmember Bolkcom asked, so this is the real contract on page 224?
Attorney Erickson replied, yes. The first portion before 242 shows the contract. It is just for
ease of someone being able to pick up the contract at a later date and know that it has been
changed from the standard AIA contract. That is how she is interpreting the two sets of
documents. �
Mr. Kosluchar stated if they go to 1.1.7, page 221, then can make an addition to state the design
shall be to B3 standards.
Attorney Erickson stated to piggyback on that then they could approve the contract subject to
the inclusion of that language.
Mayor Lund asked whether that is something Partners& Sirny will go along with?
Mr. Kirk replied, they knew about that the project has to be built to B3 standards since it is a
State bonding project; and that was in the RFP and in the interviews it was discussed.
MOTION by Councilmember Bolkcom to Approve Agreement between the City of Fridley and
Partners & Sirny, LLP, to Provide the Design Services for the Renovation and Addition to the
Interpretive Building at Springbrook Nature Center with the inclusion of Section 1.1.7, that the
project shall be constructed pursuant to the B3 guidelines. Seconded by Councilmember Saeflce.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
16. Informal Status Reports
Councilmember Bolkcom stated as far as the SPRING design committee, there was some
discussion at their first two meetings, that they need to bring the public in but first they have to
meet with the architect and design team to look at what they need and then there will be some
opportunities for people who work at the nature center and people who use the nature center to
provide input as to what they like about the nature center now and what they would like to see
happen. It will be a very important part and a lot of it will be including the schools and other
groups who use the nature center.
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FRIDLEY CITY COUNCIL MEETING OF DECEMBER 8,2014 _ PAGE 42
ADJOURN:
MOTION by Councilmember Barnette, seconded by Councilmember Varichak,to adjourn.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 10:38
P.M.
Respectfully submitted by,
Denise M. Johnson Scott J. Lund
Recording Secretary Mayor
42
PLANNING COMMISSION MEETING
December 17,2014
Chairperson Kondrick called the Planning Commission Meeting to order at 7:01 p.m.
MEMBERS PRESENT: David Kondrick, Brad Sielaff, Tim Solberg, Leroy Oquist, and Todd
Olin
MEMBERS ABSENT: Dean Saba
OTHERS PRE5ENT: Julie Jones, Planning Manager
Tom Determan,DET 7220 LLC
Haider Algezi,Good Deal Auto Sales,Ina
Wael Abdelaziz,Good Deal Auto Sales,Inc.
Approval of Minutes: January 15,2014
MOTION by Commissioner Oquist to approve the minutes as presented. Seconded by Commissioner
Solberg.
UPON A VOICE VOTE,ALL VOTING AYE,CHAIRPERSON KONDRICK DECLARED THE
MOTION CARRIED UNANIMOUSLY.
1. PUBLIC HEARING:
Consideration of a Public Hearing for a Preliminary Plat,PS#14-04,by Fridley Land LLC,
to accommodate the second phase of the redevelopment of the property,generally located at
4800 East River Road NE.
MOTION by Commissioner Sielaffto open the public hearing. Seconded by Commissioner Saba.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRI'ERSON KONDRICK DECLARED THE
MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING WAS OPENED AT 7:03
P.M.
Julie Jones, Planning Manager, stated the petitioner, Paul Hyde of Fridley Land LLC, is requesting the
second preliminary plat to allow for the redevelopment of the property located at 4800 East River Road.
Ms. Jones stated the first plat was requested earlier this year to allow for Phase I of the redevelopment,
which created two separate pazcels on the south side of property. This will allow the construction of two
industrial buildings,one of which is cunently being built.
Ms. Jones stated this preliminary plat is being requested to allow Phase II of the redevelopment, which
will consist of consolidating a tenant in the existing building. A 475,000 square foot portion of the
building will remain as office and technology space for an existing tenant. The renovation of this existing
475,000 square foot space will begin in the Spring of 2015 and is expected to be completed by October
2015.
Ms. Jones stated the Commission and Council will recall that this property was rezoned from M-2,
Heavy Industrial to S-2, Redevelopment District, last year to allow redevelopment of what has been
known as the BAElFMC/Navy site,now being called Northern Stacks.
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December 17,2014
Page 2 of 12
Ms.Jones stated the petitioner is planning to redevelop the subject property in four phases.
Ms. Jones stated the final plat for Northern Stacks, which accommodates Phase I was recently filed at
Anoka County. The Northern Stacks plat consisted of three lots which included(2)new industrial lots on
the southern end of the site and Lot 3, which was the remainder of the lot. T'hat plat also dedicated 1.49
acres of land for right-of-way purposes, which includes the construction of a cul-de-sac off of East River
Road,to allow access to the Phase I parcels. The new intersection will be fully signalized.
Ms.Jones stated at this time Mr. Hyde is seeking to replat Lot 3 of the Northem Stacks plat,which is the
northern 94.48 acres of the original 4800 East River Road parcel. This new replat will consist of the
creation of three new lots that will be legally described as: Lot 1, Lot, 2, and Lot 3, Block 1, Northern
Stacks 2"d Addition. Proposed Lot 1 will be 22.52 acres in size, Lot 2 will be 41.30 acres in size and Lot
3 will be 30.66 acres in size.
Ms. Jones stated Phase II of the redevelopment of this site will occur on Lot 2 and will involve the
consolidation of an existing tenant within the existing building. The northern 475,000 square feet of the
building will remain in place as an office and technology center for the existing tenant. The remainder of
the building will start to be demolished in the Spring of 2015. The demolition of the building and the
construction of the "new skin" of the existing building will likely be completed by October 2015. Lot 2
will use the existing access off of East River Road.
Ms. Jones stated Phase III will involve the redevelopment of what will become Lot 1 through this replat.
It consists of the northern 22.5 acres,which is mostly vacant land.l'his lot will be accessed from 51�`Way
to the north.
Ms. Jones stated the property is zoned S-2, Redevelopment District. The S-2 zoning designation was
approved to allow flexibility with the redevelopment of the property. When the rezoning was approved
last year for this property, a Master Plan was also approved that establishes guidelines that dictate what
type of development wi11 occur on site.
Ms. Jones stated the S-2 zoning does not have a lot size minimum or maximum; however, staff has
generally refened to the most similar zoning designation for comparison. The M-2, Heavy Industrial
zoning district requires a minimum lot size of 61,500 square feet or 1.41 acres. The creation of the new
lots would most closely relate to an M-2,Heavy Industrial zoning designation. Based on this comparison,
the proposed subdivision would comply with code requirements. Since the S-2 zoning does not have a
minimum lot size requirement and allows flexibility in meeting regular code standards, staff has
determined that this preliminary plat meets the intent of the master plan that was approved with the S-2
rezoning for this property.
Ms. Jones stated Staff would also like to note that the side yard setback in an M-2, Heavy Industrial
zoning district is 20 feet. The portion of the main building that is being kept, will comply with that
20-foot setback requirement, based on the new property line location. There is a detached accessory
building, known as Building 37 to the property owner. That is located north of the existing building and
will be approximately 15 feet from the newly created north property line. Accessory structures in all
zoning districts can be located 5 feet from the side yard property line, so the creation of this new lot will
not create a non-conforming setback situation.
Ms. Jones stated City Staff recommends approval of the preliminary plat request, and the plat complies
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December 17,2014
Page 3 of 12
with the master plan approved for the rezoning of this property.
MOTION by Commissioner Sielaffto close the public hearing. Seconded by Commissioner Oquist
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON KONDRICK DECLARED TI�
MOTION CARRIED UNAI�TIMOUSLY AND THE PUBLIC HEARING WAS CLOSED AT 7:08
P.M.
Chairperson Kondrick stated it seem pretty straightforward to him.
Commissioner Oquist stated,and it complies with the master plan.
MOTION by Commissioner Oquist approving Consideration of a Public Hearing for a Preliminary Plat,
PS #14-04, by Fridley Land LLC, to accommodate the second phase of the redevelopment of the
property, generally located at 4800 East River Road NE. Seconded by Commissioner Solberg
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON KONDRICK DECLARED THE
MOTION CARRIED UNANIMOUSLY.
2. PUBLIC HEARING:
Consideration of a Public Hearing for a Preliminary P{at, PS #14505 by DET 7220 LLC,
the replat will recognize the placement of the exisNng buildings in relation to the new
property lines and the deficient rear yard and side yard setbacks generally located at 7220
Central Avenue NE.
MOTION by Commissioner Solberg to open the public hearing. 5econded by Commissioner Oquist.
UPON A VOICE VOTE, ALL VOTING AYE, CAAIItPERSON KONDRICK DECLARED THE
MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING WAS OPENED AT 7:09
P.M.
Ms. Jones stated the petitioner, Tom Determan, of DET 7220 LLC, the property owner of the subject
properties located at 7220 Central Avenue and 1241 - 72"a Avenue, is seeking to replat tl�ese two
properties to make an adjustment to the property line.
Ms. Jones stated the petitioner would like to sell the property at 7220 Central Avenue, but in order to do
so the property line needs to be modified to ensure the wastewater treatment building on site remains with
the parcel at 1241 -72"a Avenue.
Ms. Jones stated the complexity of the infrashvcture inside the wastewater treatment building makes it
very difficult to relocate the building somewhere else on site; and it is used by the tenant that is located in
the building at 1241 - 72"d Avenue. As a result the replat is being requested to modify the existing
property line between the two properties.
Ms. Jones stated the subject properties are zoned M-1, Light Industrial, as are the properties to the north
and west. Cummins Power Generation across Central Avenue is zoned M-2, Heavy Industrial, and the
properties to the south are zoned R-3, Multi-Family. The subject properties have operated as a single site
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December 17,2014
Page 4 of 12
since they were originally developed back in the 1970's. Several building additions have been
constructed as have free-standing buildings throughout the site. At this time, the petitioner would like to
sell the property at 7220 Central Avenue to a new owner and as a result, new properiy lines are being
identified.
Ms. Jones stated City code requires that lots in the M-1, Light Industrial zoning district have a minimum
total lot area of 1 'h acres. After the plat, proposed Lot 1 will be 265,537 square feet(b.10 acres) in area
and Lot 2 will be I 17,396 square feet (2.70 acres) in size after the replat. Therefore, both lots meet the
minimum lot area requirement.
Ms.Jones stated the City's Subdivision ordinance allows the Planning Commission and City Council to
permit variations to code requirements through the subdivision process, provided such variations would
not cause undue hardship or are not contrary to the intent and purpose of the regulations.
Ms. Jones stated the wastewater treatrnent building located on the property is an insulated, heated, and
wired building operated by West Central Environmental Consultants (WCEC) Industrial Services LLC,
one of the petitioner's tenants. There are underground pipes, wiring, and sanitary sewer lines coming up
into the building and an elaborate wastewater treatment facility contained within, which make it very
problematic to move. This building will be located .08 feet from the newiy created property line between
7221 Central Avenue and 1241 - 72°d Avenue. The existing buifding at 7220 Central Avenue will be 4
feet from the newly created properiy.
Ms. Jones stated the City will recognize through the resolution approving the plat these variations to the
code requirements as neither of them will cause undue hardship or are contrary to the intent and purpose
of the requirement in this particular situation.
Ms.Jones stated City staff has not heard from any neighboring property ovmers.
Ms. Jones stated City Staff recommends approval of this preliminary plat request, with the following
stipulations as proposed lots exceed the size standards required by the City of Fridley Zoning Code:
1. The petitioner shall install a fire suppression system within the existing wastewater
treatment building or the wa11 between the building and newly created properiy line shall
be retrofitted to a 3-hour fire-wall, due to the close proximity of the building to the
property line.
2. Each building on both parcels shall be assigned an address for police and fire
identification.
Commissioner Solberg asked what is a 3-how firewall?
Ms. Jones replied that is a special type of finish on the wall that slows down the spread of fire. They
have to put a heavier grade of sheetrock. It is a common thing the City requires. The Building Code
requires it if buildings are closer than five feet together.
Chairperson Kondrick asked the petitioner if he had any questions about what Ms.Jones had to say?
Tom Determan,DET 7220 LLC,replied,no. He read the submittal and detailed report,went through the
stipulations and had no problems with them.
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December 17, 2014
Page 5 of 12
MOTION by Commissioner Oquist to close the public heazing. Seconded by Commissioner Sielaff
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON KONDRICK DECLARED THE
MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING WAS CLOSED AT 7:15
P.M. -
Chairperson Kondrick stated it seem pretty much straightforward. Staff did a good job of taking care of
business.
MOTION by Commissioner Sielaff approving Consideration of a Public Hearing for a Preliminary Plat,
PS #14-505 by DET 7220 LLC, the replat will recognize the placement of the existing buildings in
relation to the new property lines and the deficient rear yard and side yard setbacks generally located at
7220 Central Avenue NE with the following stipulations:
1. T'he petitioner shall install a fire suppression system within the existing wastewater treatment
building or the wall between the building and newly created properiy line shall be retrofitted to a
3-hour fire-wall, due to the close proximity of the building to the property line.
2. Each building on both parcels shall be assigned an address for police and fire identification.
Seconded by Commissioner Solberg
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON KONDRICK DECLARED THE
MOTION CARRIED UNANIMOUSLY.
3. PUBLIC HEARING:
Consideration of a Resolution for a Special Use Permit, SP #14-09, by Good Deal Auto
Sales,Inc.,to altow an outdoor auto sales lot,generally located at 7298 6ighway 65 NE.
MOTION by Commissioner Solberg to open the public hearing. Seconded by Commissioner Oquist
UPON A VOICE VOTE, ALL VOTING AYE, CAAIRPERSON KONDRICK DECLARED THE
MOTIOl� CARRIED UNANIlVIOUSLY AND THE PUBLIC HEARING WAS OPENED AT 7:17
P.M.
Ms.Jones stated the petitioner, Haider Algezi, of Good Deal Auto Sales, Inc., is requesting a special use
permit in order to operate a business that will allow the sale and display of new and/or used vehicles at
the property located at 7298 Highway 65.
Ms.Jones stated the use of the property as an automobile service station is no longer in business.
Ms.Jones stated the subject properly is located on the southwest corner of 73`�Avenue and Highway 65.
It is zoned C-2,General Business. In 1971,the property was rezoned from M-2,Heavy Industrial to C-2,
General Business. A special use permit was also issued in 1971 to allow a gas station. As a result of the
rezoning and special use permit approval, the existing gas station building was constructed. The property
has remained a gas station since. Within the last few months the gas station has closed and currently the
property is vacant of any business.
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December 17,2014
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Ms. Jones stated agencies selling or displaying new and/or used vehicles is a permitted special use in the
C-2,General Business zoning district,subject to stipulations.
Ms.Jones stated the petitioner plans ta utilize the existing building by remodeling it for sales/office area,
storage and restrooms. The parking lot boundary will remain the same, with the exception of closing the
east access point to the site from 73Td Avenue. The west access off 73ra Avenue will remain as will the
access off the Service Road. The parking lot will be striped for the display of the vehicles for sale. The
submitted site ptan shows 18 parking stalls along the north and east edge of the parking lot and then four
stalls along the west edge for customers. Based on the site plan submitted, no employee parking stalls
have been designated. The petitioner does plan to remove the gas pumps,but leave the canopies and use
the area underneath for display of 6 additional vehicles.
Ms. Jones stated there are (4) underground gas tanks, which will be required to be removed to MPCA
standards prior to operation of this business. It is unclear based on the information submitted whether any
exterior improvements are being proposed to the site.
Ms.Jones stated though staff believes this use is not ideal for this site due to the shape and size of the lot,
the use may work only if it strictly adheres to the stipulations suggested by staff. These stipulations are
typical of what has been previously approved for other outdoor car sales lots in Fridley.
Ms.Jones stated City Staff recommends approval of these special use permits,with stipulations.
Ms. Jones stated agencies selling or displaying new and/or used vehicles are an approved special use
permit in commercial zoning districts,provided stipulations can be met.
Ms. Jones stated City staff recommends if the special use permit is approved,the following stipulations
be attached.
1. The property owner shall sign the special use permit application prior to filing of the
resolution for this special use permit at Anoka County.
2. The underground gasolineldiesel tanks and pujnps shall be removed in accordance with
an approved Response Action Plan(RAP), approved by the Minnesota Pollution Control
Agency (MPCA) prior to issuance of a building permit for the remodel of the existing
building or issuance of the City license to operate a car sales lot.
3. The petitioner shall apply for any required building permits for the remodel of the
existing building.
4. The petitioner shall comply with any and all building,fire and ADA requirements.
5. The existing free-standing sign is iocated over a sewer line, as a result, the sign shall
either be re-located on-site or an encroachment agreement with the City needs to be
executed.
6. The petitioner shall submit a new site plan designated with customer and employee
parking prior to issuance of a building permit for the remodel of the existing building or
issuance of the City license to operate a car sales lot.
7. All parking stalls used on-site shall be designated through parking lot stripping, customer
and empioyee parking shall be clearly marked. Parking stali size shall comply with code
requirements.
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December 17, 2014
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8. No vehicles shall be parked in a manner so as to impede the free travel of vehicles in
areas intended as drive aisles.
9. No employee or customer parking shall be allowed along the Highway 65 Service Drive
or 73'�Avenue.
10. No vehicles parking shall take place on any boulevard or green areas.
11. No vehicle washing shall take place outside.
12. No vehicle repair shall take place on-site.
13. The petitioner shall install a new dumpster enclosure.
14. The existing building and canopies shall be repainted as part of the building remodel. All
old signage from the previous use shall be removed.
15. Any new signage on the building or free-standing sign will required sign perrnits.
16. The existing bikeway/walkway easement shall remain free of vehicle parking.
17. 'I'he petitioner shall submit a landscape and irrigation plan to City staff for review and
approval at the same time as building permit submittal for remodel.
18. If the petitioner plans to install a fence on the property,the design and material type shall
be reviewed and approved by City staff.
19. The petitioner shall be responsible for litter control on the site and litter shall be cleared
from the site daily.
20. The parking lot shall be properly lighted for security reasons, but needs to be shielded
and downcast to not impact neighboring properties.
21. The petitioner shall prepare and submit to the City a security plan to assure oversight of
the storage lot and to deter crime to the property.
Ms. Jones stated Ms. Stromberg did inform her today that Stipulation No.l has already been
accomplished.
Commissioner Oquist asked regarding Stipulation No. 2,where are the tanks and are they going to have
to remove the canopies?
Ms.Jones replied she be(ieved the tanks are in another location and not under the canopies.
Commissioner Oquist asked, as to Stipulation No. 20, the lighting is to be downcast but not to affect
neighboring properties, should that also include Highway 65?
Ms. Jones replied, there is a pretty long and wide MnDOT right-of-way there. The bottom line
requirement for CiTy Code is that your candle brightness intensity cannot exceed three foot candles at the
properiy line. That kind of covers all directions.
Mr. Olin stated he is curious about the condition of the soil. Is there any kind of inechanism to determine
that7
Mr. Jones replied, yes, that is the purpose of the RAP (Response Action Plan)which has to be approved
by the MPCA. Some of the plan will require some testing of the soil around the tanks once they are
removed. If there is any concern, they would have to continue to test further away from the location of
those tanks until everything is cleared by the MPCA.
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Commissioner Sielaff asked if the business owner is leasing from the property owner?
Haider Algezi,Good Deal Auto Sales,Inc., stated he is leasing this space.
Commissioner Sielaff asked Mr.Algezi if he was the owner of the building?
Mr.Algezi replied he is not the owner of the building.
Commissioner Sielaff asked if who is going to meet the stipulations?
Mr. Algezi replied, he is going to do it, he is going to remove the tanks, do everything to organize and
clean it, painting, etc. He is going to make it really nice.
Chairperson Kondrick asked Mr. Algezi if he understood the 21 stipulations and does he agree with
them?
Mr.Algezi replied,yes.
Commissioner Sielaff asked Mr.Algezi whether he was going to have room for 18 vehicles on this site?
Mr. Algezi replied basically it is more but the surveyor talked about making it bigger and have more
space.
Commissioner Sielaff asked what will be the maximum number of cars he will have on site?
Mr.Algezi replied,you can put like 25 cars on it.
Chairperson Kondrick asked Mr. Algezi whether he will have enough room for the cars he wishes to
sell and display as well as cars that are parked there for his employees and customers?
Mr.Algezi replied, yes, of course. He is not going to put so many cars on-site that he doesn't have much
space for employees and customers. Most of the spots next to the office he is going to leave open for
employee and customers.
Commissioner Sielaff asked how many total parking spots is he talking about? Is he talking about 25
spots for vehicles for sale plus there needs to be parking for employees and customers. How many are for
employee/customer parking?
,
Mr.Algezi replied,he is not sure. It will be six on the side.
Chairperson Kondrick asked how many employees will he have?
Mr. Algezi replied, him, manager, and someone to take care of the papers, etc. Three, not more than
four. If the business runs good then maybe he will.need more.
Commissioner Sielaff asked how many total are there,employee plus customer parking spots are there?
Ms. Jones replied, as she understood from the report. There are 18 being proposed for the north and the
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December 17, 2014
Page 9 of 12
east area. She thought the report said six underneath the canopy, but it looks like more than that on the
plan. It is very difficult to read the site plan because there are so many layers on it. T'hat is why Ms.
Stromberg highlighted it in colors.
Commissioner Oquist stated it looks like there are 18 on the north and east, the yellow. It looks like
there are probably eight in the yellow area in the middle. Probably four in the green area.
Commissioner Sielaff stated there are at least 25.
Chairperson Kondrick stated they do not want any cars parked on the street. He knows some customers
will,but they do not want that. They want to provide places on the site for customers to park. Just so Mr.
Algezi is clear on what their intent is. They do not want him to go and have that happened.
Mr.Algezi replied,sure.
Commissioner Sielaff stated he did not want Mr. Algezi to go into the venture without understanding
how many spaces he actually has available for cars that would be sold.
Commissioner Olin asked if this plan will require any sort of a pavement to be laid down?
Mr.Algezi replied, all the concrete is there.
Commissioner Olin asked whether there will not be any additional square footage?
Mr.Algezi replied,no.
Chairperson Kondrick asked Mr. Olin to ask Mr. Algezi again.
Commissioner Olin asked if whether more concrete is going to be poured for parking surface.
Specifically he is wondering if there is open permeable surface right now where water can trickle down
through or will they pave over more which will block water?
Wael Abdelaziz asked if Commissioner Olin is asking about the concrete?
Commissioner Olin asked if they are going to have to pour more concrete to extend the parking or if the
area in the northeast highlighted in yellow is already concrete?
Mr.Abdelaziz replied,yes.
Commissioner Oquist asked if there is going to be a need for a runoff holding area for this property?
Ms.Jones replied, that is a good question. In a situation like this where it is an existing property and has
existing pavement, they are not required to do any sort of stormwater treatment. When they submit their
landscaping plan,the City would encourage that,if they could maybe do some perimeter rain gardens that
would be suitable for the lay of the land for that to work out. However, by Code they would not be
required.
Chairperson Kondrick stated they are going to need every square inch of that property that they can
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December 17,2014
Page 10 of 12
come up with.
Commissioner Oquist stated there is going to be a lot of concrete removal to get the tanks out of there,
and they will have to do resurfacing.
Ms. Jones replied, but because that is the existing prior, that wouldn't be considered new, added,
impervious surface. If they were expanding the parking lot and adding a few more parking spots, then
they would have to be required to do some stormwater treatment.
Commissioner Solberg asked Mr. Algezi once he receives approval, when does he think he will be in
business.
Mr. Algezi replied, two to three weeks. He talked to someone to take care of the lot and he told him it
would take ten days to two weeks. He is going to work on it right away.
Chairperson Kondrick told Mr. Algezi this does have to pass the City Council which happens on
January 5. That is the fmal approval and he wants to make sure he understands that.
Mr.Algezi replied, okay.
MOTION by Commissioner Solberg to close the public hearing. Seconded by Commissioner Sielaff.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON KONDRICK DECLARED THE
MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING WAS CLOSED AT 7:43
P.M.
Chairperson Kondrick stated the staff has provided them with a list of stipulations that seems to cover
every possibility and to make sure these gentlemen do what they are supposed to do on that property.
MOTION by Commissioner Solberg approving Consideration of a Resolution for a Special Use Permit,
SP #14-09, by Good Deal Auto Sales, Inc., to allow an outdoor auto sales lot, generally located at 7298
highway 65 NE with the following stipulations:
1. 1'he property owner shall sign the special use permit application prior to filing of the
resolution for this special use permit at Anoka County.
2. The underground gasolineldiesel tanks and pumps shall be removed in accordance with
an approved Response Action Plan (RAP), approved by the Minnesota Pollution Control
Agency (MPCA) prior to issuance of a building permit for the remodel of the existing
building or issuance of the City license to operate a car sales lot.
3. The petitioner shall apply for any required building permits for the remodel of the
existing building.
4. The petitioner shall comply with any and all building,fire and ADA requirements.
5. The existing free-standing sign is located over a sewer line, as a result, the sign shall
either be re-located on-site or an encroachment agreement with the City needs to be
executed.
6. The petitioner shall submit a new site plan designated with customer and employee
parking prior to issuance of a building permit for the remodel of the existing building or
issuance of the City license to operate a car sales lot.
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December 17,2014
Page 11 of 12
7. All parking stalls used on-site shall be designated through parking lot stripping, customer
and employee parking shal) be clearly marked. Parking stall size shall comply with code
requirements.
8. No vehicles shall be parked in a manner so as to impede the free travel of vehicles in
areas intended as drive aisles.
9. No empioyee or customer parking shall be allowed along the Highway 65 Service Drive
or 73`a Avenue.
10. No vehicles parking shall take place on any boulevard or green areas.
11. No vehicle washing shall take place outside.
12. No vehicle repair shall take place on-site.
13. The petitioner sha11 install a new dumpster enclosure.
14. The existing building and canopies shall be repainted as part of the building remodel. All
old signage from the previous use shall be removed.
15. Any new signage on the building or free-standing sign will required sign permits.
16. The existing bikeway/walkway easement shall remain free of vehicle pazking.
17. The petitioner shall submit a landscape and irrigatior plan to City staff for review and
approval at the same time as building permit submittal for remodel.
18. If the petitioner plans to install a fence on the property,the design and material type shall
be reviewed and approved by City staff.
19. The petitioner shall be responsible for litter control on the site and litter shall be cleared
from the site daily.
20. The parking lot shall be properly lighted for security reasons, but needs to be shiefded
and downcast to not impact neighboring properties.
21. The petitioner shall prepare and submit to the City a security plan to assure oversight of
the storage lot and to deter crime to the properiy.\
Seconded by Commissioner Oquist
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON KONDRICK DECLARED THE
MOTION CARRIED UNAI�TIMOUSLY.
4. Receive the Minutes of the November 3,2014,Parks and Recreation Commission Meeting.
MOTION by Commissioner Sielaffto receive the Minutes. Seconded by Commissioner Oquist.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON KONDRICK DECLARED THE
MOTION CARRIED UNANIMOUSLY.
5. Receive the Minutes of the November 4, 2014, Housing & Redevelopment Commission
Meeting.
MOTION by Commissioner Oquist to receive the Minutes. Seconded by Commissioner Solberg.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON KONDRICK DECLARED THE
MOTION CARRIED UNAIVIMOU5LY.
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OTHER BUSINESS:
Ms. Jones stated as far as items they had at the last Commission meeting, the City Council did approve
the special use permits for the Crooner's restaurant which is now open with their electronic sign. Also,
both of the special use permits for the University Avenue auto sales property were approved.
Ms. Jones stated the item they had some difficulty and discussion about for 5310 Fourth Street, the
medical use facility, that special use permit was postponed and will be coming back before them in a
revised form likely at their January meeting. Staff is meeting with them next week.
Ms. Jones stated they do have the final draft of the Mississippi River Recreational Area Rules that Kay
Qualley and staff have been working on it for quite some time with the DNR as well as other cities along
the river. It has been a bit of work, but they are doing their final review of that now. She believed they
have a year before they have to adopt those changes.
Chairperson Kondrick asked where is the opposition coming from?
Ms.Jones replied,the cities along the river. Primarily there has been a lot of opposition from the City of
Anoka. The Fridley has not had many problems with it because it is one of the few cities that already had
a shoreland ordinance in place and so already had met some requirements in place. It has not been a big
change for Fridley.
Ms.Jones stated the City is getting inyuiries about activity going on at the Industrial Equities property on
East River Road and the freeway. Unfortunately, it is not related to the redevelopment that is expected to
occur on that site but the owner is temporarily allowing one of the utilities to do some storage on the site.
Commissioner Oquist asked what is the plan with Columbia Arena?
Ms. Jones replied, they are going to have some upcoming meetings about that. They are going to have a
series of forums open to the public to get their input about what they envision for that site.
ADJOURN
MOTION by Commissioner Oquist adjourning the meeting. Seconded by Commissioner Solberg.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON KONDRICK DECLARED THE
MOTION CARRIED UNA1vIMOUSLY AND T�IE MEETING ADJOURNED AT 7:52 P.M.
Respectfully submitted,
� � ����
Denise M.Johnson
Recording Secretary
54
_ AGENDA ITEM
`�°�°� CITY COUNCIL MEETING OF
Fridley
�
JAN UARY 5, 2015
Date: December 29, 2014
To: Walter T. Wysopal, City Manage��J
f�s
From: Scott Hickok, Community Development Director
Julie Jones, Planning Manager
Stacy Stromberg, Planner
Subject: Preliminary Plat Request, PS#14-04, Fridley Land LLC
INTRODUCTION
The petitioner, Paul Hyde of Fridley Land LLC, is requesting the second preliminary plat to allow for the
redevelopment of the property located at 4800 East River Road.
..��,T, ,��.,� ...�,. ,,., ,..,.., µ..�.
. � �,. �.., .,.,: ,,.
The first plat was requested earlier this year to ���'�,��`�; ._
��,
allow for Phase I of the redevelopment, which �
.. .t,�. ' �
��i 1��� Cf PHASE 3
created two separate parcels on the south side of , , ` ----���� = y,,. , x
�-� ��,,� ���.
property. Phase I will allow the construction of two � � -���� -- - -- ;,,�„a,�„`_�x----=.y
industrial buildings, one of which is currently being � °tl�'Ot'"°� >
�,;� � �� �� `�,
built. i _� �'"S3 � '� �, PhiASE 2
WY1Y�f1a i �.� . Int uv.. ��.S
.,
This preliminary plat that is being requested to `?� �� ��� �� �� � ''"�'�`
.•---�.-
allow Phase II of the redevelopment will consist of �,��,,,,,,�� ' a�� �� ��`
��� ���
consolidating a tenant in the existing building. A } -; '� ,�,
475,000 sq. ft. portion of the building will remain, � ��i =�'�� y � j
�� - � ��� � � �_-� .
as office and technology space for an existing � �_,-=� ;�' _� � �, ��.� ����;..
tenant. The renovation of this existing 475,000 sq. _�y�� ��" "ry a�,, *.�,:�.< < �;, �'F�ASE 4
ft. space will begin in the Spring of 2015 and is � ���� ��'��?i ,��, f "��"�'���� �
~�� � �,
expected to be completed by October 2015. ._..,,_ �j �-_�.��-��,�'�
4� �p. -t--- � � .. . .,,.` . ..
PLANNING COMMISSION RECOMMENDATION � ; � ; � , `°'° ^"
At the December 17, 2014 Planning Commission ����;�� � �� '� � �i
meetin , a public hearin was held for PS#14-04. � 1���" � ����r�- � "a?
g g � .'" PMASF 1
After a brief discussion,the Planning Commission '°
recommended approval of PS#14-04. .�; __.
THE MOTION CARRIED UNANIMOUSLY.
PLANNING STAFF RECOMMENDATION
City Staff recommends concurrence with the Planning Commission.
55
City of Fridley Land Use Application
PS#14-04 December 17, 2014
GENERAI INFORMATION SPECIAL INFORMATION
Applicant: Summary of Project
Fridley Land LLC The petitioner, Paul Hyde of Fridley Land LLC, is
Paul Hyde requesting the second replat for the redevelopment
1350 Lagoon Avenue#920 of the property located at 4800 East River Road.
Minneapolis MN 55408 This plat will allow Phase II of the development to
Requested Action: be a separate parcel from the rest of the property,
Plat to allow for Phase II of the which involves consolidating a tenant in the within
redevelopment the existing building on the north side of the
Existing Zoning: property.
S-2, Redevelopment District Staff Recommendation
Location: City Staff recommends approval of the preliminary
4800 East River Road plat request.
Size:
� ��`�` E rr� 7
Total site= 122 acres �
Existing Land Use: - �"
�
Industrial
Surrounding Land Use&Zoning:
N: Industrial & M-2
� E; Railroad Tracks& RR � � - .>����� � � � °
�#��� � '�' .,� * �
S: Industrial (vacant land) & M-2 � 4 ,��
7
W: East River Road & ROW � �, � �, �� ��, � -� -�� �
Comprehensive Plan Conformance: ���4,--�����"'t � ,r =
Future Land Use Map designates this area - ,-, � �
as Redevelopment � #� � ��
�.,
Zoning Ordinance Conformance: ��„ � ,�
Sec. 205.24 doesn't have a minimum lot size ��� �� �� �''���� � ��� `�``
requirement;the S-2 section of code allows """
flexibility for development. �–''—�*�•�
4,. _ ,...��
Zoning History: `° '�� �
2005–Lot is platted �� e�--���� �
2014–Lot is replatted. �� �
, . `" �
��
Legal Description of Property: �� ��-� �,
Lots 1-3, Block 1, Northem Stacks � � ������ ;�
Public Utilities: �_,� �:�
The existing building is connected. All new ��.� � �� :
buildings will need to be connected and ��' ` `� �
utilities are available in the street. ' � ��,���� �
Transportation: ;��.r��" ��
The property is currently accessed from ��
East River Road and 51�`Way. �=� �� �
Physical Characteristics: Aerial of Subject Property
Lot consists of a 2 million sq.ft. building, City Council Action/60 Day Date
hard surface driving and parking areas and City Council–January 5, 2015
green space. A new industrial building is 60 Day–January 13, 2015
being constructed on the south end of the Staff Report Prepared by:Stacy Stromberg
property.
56
Land Use Application
Plat #14-04
RE UEST
The petitioner, Paul Hyde of Fridley Land LLC, is requesting the second preliminary plat to allow for the
redevelopment of the property located at 4800 East River Road.
The first plat was requested earlierthis year to , �� - � ������'�-----�- ��-�r��
allow for Phase I of the redevelopment,which ����-}� � �,�� �r+�
created two separate parcels on the south side of � _ �� � �'HASC 3
�--�;� �, _
'� � .. �' ��
property. This will allow the construction of two — -- -- - - = ,
industrial bu�ildings, one of which is currently being � � �� °�'"'�°°�A1°"� � `;�
� � �� �� . ..,.
built. � � � �� � "� � PHASE 2
� ,uce .�,.s�.., a�� �
� . � . _. ...,
�ra�m. ' � � ..
This preliminary plat is being requested to allow , �� rw� �� ' ��� ��` "`"`"�
Phase II of the redevelopment, which will consist of ��� "�""" �� �� �' �� ,,� �
��� ����
.�
consolidating a tenant in the existing building. A , �� � � � �,��t, �
475,000 sq.ft. portion of the building will remain, � �� � ,,. �! '
�
as office and technology space for an existing � � '��� �`;-N � .. � �� �}�
�� 1 n` ` t wF�r PHAS�4
tenant. The renovation of this existing 475,000 sq. ` � � �' °`� r ���;
ft. space will begin in the Spring of 2015 and is , �.�.� ' �.,}����I ����������
expected to be completed by October 2015. ��' � (j}
,., ` �� � r� _ i
�
�`/���� � i �� �
ANALYSIS `�� , ,; �l ' ° `
The Commission and Council will recall that this `'�, �� 1 � � ���
z,
property was rezoned from M-2, Heavy Industrial � ��� �`
! �� PHASE 1
to S-2, Redevelopment District, last year to allow �` " '
redevelopment of what has been known as the _
BAE/FMC/Navy site, now being called Northem
Stacks.
The petitioner is planning to redevelop the subject property in four phases.
The final plat for Northern Stacks, which accommodates Phase I was recently filed at Anoka County. The
Northern Stacks plat consisted of three lots which included (2) new industrial lots on the southern end
of the site and Lot 3, which was the remainder of the lot. That plat also dedicated 1.49 acres of land for
right-of-way purposes,which includes the construction of a cul-de-sac off of East River Road,to allow
access to the Phase I parcels. The new intersection will be fully signalized.
At this time, Mr. Hyde is seeking to replat Lot 3 of the Northern Stacks plat,which is the northern 94.48
acres of the original 4800 East River Road parcel. This new replat will consist of the creation of three
new lots that will be legally described as; Lot 1, lot, 2,and Lot 3, Block 1, Northern Stacks 2"d Addition.
Proposed Lot 1 will be 22.52 acres in size, Lot 2 will be 41.30 acres in size and Lot 3 will be 30.66 acres in
size.
57
Phase II of the redevelopment of this site will occur on Lot 2 and will involve the consolidation of an
existing tenant within the existing building. The northern 475,000 sq. ft. of the building will remain in
place as an office and technology �- - - _�..�.._._
- ��+.....�..r.��--.-.
center for the existing tenant. The ��' � �� � �� � `
remainder of the building will start �� : I j �
to be demolished in the Spring of � � ; ? i � �Lot 1�� � � �
2015. The demolition of the � j ` g � �
� ,
building and the construction of � a.�� ,.,�,�,,,,%,,,.,,_,�..��_"'� - ��
, ...��.�..�—
the "new skin" of the existing � � , _ � e o °� { t
, � �°�, o�� ap6 0�
b u i l d i n g w i l l l i k e l y b e c o m p l e t e d ��'4�� j � �
by October 2015. Lot 2 will use � � � 1 ' � ' � ' °°°° � 0 � �
the existin access off of East River �� �� � � � � �
g ` ' ; fl lot2� � b
R d. ��i��:�-�-' � � � �
oa � '�: '�
� � - - s �
, ,� � �.. __. o
, j _._�._ ._.. _._.__._ ,
__ .___ - .
,.....,.�,r
\., , � ,r ; � ,-
Phase III will involve the , °` 1 �- ^� _ - - -
:,,� � .1 ; ` ,- �-�-'fy y������.. v , .. '�
redevelopment of what will \
1 ' '
° , , ,
�. ���� � �'� ' Q �Q �fl fl Q ��� , t �
become Lot 1 through this replat. �. t ' n -n �-. - m 'T`" �
` � � �
.�,'..T_.,__.�._.__
It consists of the northern 22.5 �`� .ti-�� _'-° -" "— ,�
acres, which is mostly vacant land. N'Y�,, ����\ �� � ?�
This lot will be accessed from 51S` � � `�ew� � � � _ a
Way to the north. � l� '� '" � a
�� � � � t . ,�
� �, .��,:, ' Lot 3 •
i ��a�i�X �.
The property is zoned S-2, � � ,
�Y
Redevelopment District. The 5-2 `1�� '�
S � �r�. ,t �� . � ��
zoning designation was approved '���r �,1� � � �w- _--� � � , �
to allow flexibility with the � ��, �.�,� �� - � �- r � ��- --- *�-�� � �
� � - - �
redevelopment of the property. �"�A��, �. ,. . .�` . '"'�°'�� -�;i,�� �'�� � � � i
When the rezoning was approved
last year for this property,a Master Plan was also approved that establishes guidelines that dictate what
type of development will occur on site.
The S-2 zoning doesn't have a lot size minimum or maximum; however, staff has generally referred to
the most similar zoning designation for comparison. The M-2, Heavy Industrial zoning district requires a
minimum lot size of 61,500 sq.ft. or 1.41 acres.The creation of the new lots would most closely relate
to an M-2, Heavy Industrial zoning designation. Based on this comparison,the proposed subdivision
would comply with code requirements. Since the S-2 zoning doesn't have a minimum lot size
requirement and allows flexibility in meeting regular code standards, staff has determined that this
preliminary plat meets the intent of the master plan that was approved with the S-2 rezoning for this
property.
Staff would also like to note that the side yard setback in an M-2, Heavy Industrial zoning district is 20 ft.
The portion of the main building that is being kept,will comply with that 20 ft. setback requirements,
based on the new property line location. There is a detached accessory building, known as Building 37
to the property owner;that is located north of the existing building and will be approx. 15 ft.from the
newly created north property line. Accessory structures in all zoning districts can be located 5 ft. from
the side yard property line,so the creation of this new lot will not create a non-conforming setback
situation.
RECOMMENDATIONS
City Staff recommends approval of the preliminary plat request.
• Plat complies with the master plan approved for the rezoning of this property.
58
- AGENDA ITEM
�' `���°f CITY COUNCIL MEETING OF
"' Fridley
JANUARY 5, 2015
Date: December 29, 2014
To: Walter T.Wysopal,City Manager
From: Scott Hickok,Community Development Director
Julie Jones, Planning Manager
Stacy Stromberg, Planner
Subject: Preliminary Plat Request, PS#14-05, Det 7220 LLC �
INTRODUCTION
The petitioner,Tom Determan,of DET 7220 LLC,the property owner of the subject properties located at
7220 Central Avenue and 124172"d Avenue, is seeking to replat these two properties to make an
_ ..,. ,.,:- .;r,,:r, .,. � - a ;
adjustment to the property line. . � .� . _{_ �--=-.•-.����,�__ _� � ...
a COJh 1 STAFE A93 Fa�.,NtA�'..NQ.��B 173tFj AVE�� A
..' "_.. „"_..____ ...__'_'___... i
...._ . .;�...,,:.nuTU.e�a--r : �-�.��
�.,
_ � rv . .. � ..� I
The petitioner would like to sell � °- -�, � "� �� � :
the property at 7220 Central ;�,t i F ( � ' __ I i
Avenue, but in order to do so the � y l °�''"`" i � �
t __ �
;_ � 'I ,;
property line needs to be � :.� > 12��.7,2nd AVet1�� '; � ��. , i
,,..
modified to ensure the � a ` � ='
, . �-'���oi� � -� r �� � �
wastewater treatment building on ' $ � � ' ` � � • � !
. �1;,.� � � 5�: -� _ ,
site remains with the parcel at �� ' � ►
���y_ Y n „ ' ---------- i i ::
124172"dAvenue. ;�;� °.�°�� �' ����.a ��''� , �---- � � -
,
�� � ,w�r �R.,� �.1 , �+�- .�
;, 4:. t ' ,�
I�;� �� �� ,: ��� ' � �i ;:
The complexity of the �� -� � '�' --�$ � � � '-
�,r� ;f t..; �.; � ..-�
infrastructure inside the �� ;� r ��-� ` � �'. . � � ` � � ' ` '' ��� � �-
� ����� ; l ;' � � , s a�i� ,i��-��32fl Csr�trai A�rgr�u� �: �� ,�
wastewater treatment building � . 'x � _
r � � ; �•.`�,��;� 3 �� ,.
makes it very difficult to relocate � �' _,�., � �� °� �-�# � ; �' �'"'�` a' `a _
the building somewhere else on ���s d ,_;�.,,,. , � � �� � � N ��� -
..:i��' `�� �� � z; � � �r �t��., �
site; and it is used by the tenant �; #<�, ,•�' = �'� ; = > v� �..�'����� x��.���; . ��
��.,v r ,� . ,_ �
�- . ;
that is located in the building at ' �
�-_ �It � ..�. : ,�U , ? 1 �-r.�` i w�4 '��R:�.-"� rc; �, . _..f � �"�y'� �� �� �.
A ...r.... . . ._ .. . . _ ... - . - '
. - . a_ ,� ♦ � �TND 11Va1�=V� `.
1241 72"d Avenue. As a result, the .�_ ,, � � '�'0°."�'"�`� ; , ,,:;,�, �
r. ' , _.: :: .,�
replat is being requested to
modify the existing property line between the two properties.
PLANNING COMMISSION RECOMMENDATION
At the December 17, 2014 Planning Commission meeting, a public hearing was held for PS#14-05. After a
brief discussion,the Planning Commission recommended approval of PS#14-05, with the stipulations as
presented.
THE MOTION CARRIED UNANIMOUSLY.
PLANNING STAFF RECOMMENDATION
City Staff recommends concurrence with the Planning Commission.
59
STI PU LATI ONS
1. The petitioner shall install a fire suppression system within the existing wastewater treatment
building or the wall between the building and newly created property line shall be retrofitted to a 3-
hour fire-wall, due to the close proximity of the building to the property line.
2. Each building on both parcels shall be assigned an address for police and fire identification.
60
City of Fridley Land Use Application
PS#14-05 December 17, 2014
GENERAL INFORMATION SPECIAL INFORMATION
Applicant: Legal Description of Property:
DET 7220 LLC 7220 Central Avenue
Tom Determan The South 320 ft.of the East 452 ft.of Lot 1,Auditor's
14914 Naples Street NE Subdivision No.89,except road,subject to easement of
Ham Lake MN 55304 record.
Location: 124172�d Avenue
That part of the North%of the NE%of the SW%of
7220 Central Avenue NE Section 12-30-24 lying East of the West 475 ft.,thereof,
1241 72"d Avenue NE except South 320 ft. of the East 452 ft.thereof,also
Requested Action: except part platted as Central Avenue Addition;also
Replat property to adjust property line. except 33 ft. lying East of the West 500 ft.thereof;AKA
Existing Zoning: part of Lot 1,Auditor's Subdivision No.89;except road,
M-1 (Light Industrial) subject to easement of record.
Size: Transportation:
7220 Central Avenue Properties accessed from Central Ave and 72"d Ave.
Current size: 116,305 sq. ft. 2.67 acres Physical Characteristics:
Size after replat: 117,396 sq.ft. 2.70 acres Building, hard surfaces areas, and landscaping.
1241 72"d Avenue SUMMARY OF PROJECT
Current size: 266,151 sq.ft. 6.11 acres The petitioner,Tom Determan,of DET 7220 LLC,the
Size after replat: 265,537 sq. ft. 6.10 acres property owner of both subject properties, is
Existing Land Use: seeking to replat the properties to adjust the
Industrial property line to ensure that while he creates a lot to
Surrounding land Use &Zoning: sell,the wastewater treatment building that is
N: Industrial & M-1 located close to the 7220 Central Avenue building
E: Industrial (Cummins) & M-2 becomes part of the 12414172"d Avenue property.
S: Multi-Family& R-3 SUMMARY OF ANALYSIS
W: Industrial & M-1 City Staff recommends approval of the preliminary
Comprehensive Plan Conformance: plat request. —each lot will meet or exceed the
City's minimum lot size standard.
Future Land Use Map designates it as � � , ,.. � . .
Redevelopment. �' ���� ���� �` `���- �� �� � � � �'� �
� HD F".0' .,
� +E `�'W..3F�ea ..
Zoning Ordinance Conformance: ��"� � ��� � ��'�` � e ,�� �
Section 205.18.03.A requires a minimum lot � �� r '� �`�` �� �� �=s�?-�` �
�, � ` � �
size of 1%acres. ,�.� .�� � � �sa'�,�� :�- � ,„,
Zoning History: � `" ��'��' ���" � ��
� ,.
1949—Lot is platted. �'�` -
� �• �`� �. � � � �� �
1967—Foundation permit issued. �'�� g '� �;"� ; � �`�� � '�°� ;=�` '
S ( � fi # � :
1976—Building addition. �v� X ��.`z t�4 �
1981—Storage building constructed. � ��� ' -'-
� � �-�-
� r $�� �
k! T
1985—Shop building constructed. ,�,�. � �—��' ��„���" �� ��": � ��
1986—Building Addition. _ � � ��'�� �
1988—Building Addition. a NDA ,E �
1989—Buildin Addition. � � �� ��`� � �
g Aerial of Properties
1999—Garage constructed. CITY COUNCIL ACTION/60 DAY DATE
2000—Pump house constructed. City Council—January 5, 2015
Public Utilities: 60 Day—January 13, 2015
Buildings are connected. Staff Report Prepared by: Stacy Stromberg
61
Land Use Application
Plat #14-05
RE UEST
The petitioner,Tom Determan, of DET 7220 LLC,the property owner of the subject properties located
at 7220 Central Avenue and 124172"d Avenue, is seeking to replat these two properties to make an
adjustment to the property line.
The petitioner would like to sell the property at 7220 Central Avenue, but in order to do so the property
line needs to be modified to ensure the wastewater treatment building on site remains with the parcel
at 1241 72"d Avenue.
The complexity of the infrastructure inside the wastewater treatment building makes it very difficult to
relocate the building somewhere else on site; and it is used by the tenant that is located in the building
at 124172�d Avenue. As a result,the replat is being requested to modify the existing property line
between the two properties.
HISTORY AND ANALYSIS
The subject properties are zoned M-1, light Industrial, as are the properties to the north and west.
Cummins Power Generation across Central Avenue is zoned M-2, Heavy Industrial, and the properties to
the south are zoned R-3, Multi-Family. The subject properties have operated as a single site since they
were originally developed back in the 1970's. Several building additions have been constructed as have
free-standing buildings throughout the site. At this time, the petitioner would like to sell the property
at 7220 Central Avenue to � l ° ° ' "�� .'{. � _ _
,:,
� a F � �,�., .«r. . _ . '
'� .' .CA��.1V'Y S GT£AU 4K�7NaY h0 8(134J AYE I+ET " T _ . ..��__.. _ ..�.
a new owner and as a ' ' �
_. ---_ _- - �
�- � -- _, _ *°�.,..-�.,,.�*.�. ,._�,-- ,y„ � .;
result, new property lines Y� � � � ;
� ' � � j z
are being identified. ���, ' ` ' ;
, i
t v .k . � �
, ,
�,�� � � . r � i � X�� � . � � i
� � � a
City code requires that { , �� 'f'� � , ; ;,�u �! -i
, � c i
lots in the M-1, Light �� . � � �`; ; , 4 � `� �I ,
F � � �` � :� P � :
Industrial zoning district �� � � � �,�� '" � � : �
� � i � �
have a minimum total lot i ' � � ° � ' } ►
. ,..�:� , �� . ...:. . ___ __ __— _ - � t1
,� :
area of 1 %z acres. After ;�'' ' ��` .�-'� ° ,�`f�.,��.� j-'-. `'�.'.=�-„ 1� � _
the plat, proposed Lot 1 � ��,:- � e � � � � �- 'y��� °
��n � :� � , �4P'
will be 265,537 sq. ft. ; � ;' , - � ' I� ' '•
,
� r. � �
(6.10 acres) in area and �'_� � + ��� �` � i � ��
��;� � '..� ` ;�;^ Bl:t3;CK '�!, � ` �' ' � -
Lot 2 will be 117,396 sq. , 5, ,�,� 5���„�,,.� ., �, a e ,-
ft. (2.70 acres) in size after �,� { �,,_, - ._� � :; � , , , �� '��'v 1 ' � �4 '
the replat. Therefore, � ;;l � � - �a � -
, � " �� �,,�� '�� r x`'' ; r f � �; r a'i
� both lots meet the �'�°�� �,,- � �� � � ��: � ' ��E>�< �� .�,�,. ,.
minimumlotarea ' -��F �� �`� -- �'''� r`"`� �'�� �� � ' ��
, _-- -
requirement. . . �=^a,A•�r:� ,,. ru o e,v�+� 3
F�.�"F_`----�—g 4 . � ! . .
The City's Subdivision ordinance allows the Planning Commission and City Council to permit variations
to code requirements through the subdivision process, provided such variations would not cause undue
hardship or are not contrary to the intent and purpose of the regulations.
62
The wastewater treatment building(highlighted in the drawing below as"shed") located on the
property is an insulated, heated, and wired building operated by West Central Environmental
Consultants (WCEC) Industrial Services LLC, one of the petitioner's tenants. There are underground
pipes, wiring, and sanitary sewer lines coming up into the building and an elaborate wastewater
treatment facility contained within, which make it very problematic to move. This building will be
located .08 ft. from the newly created property
nt:rn��. i••=3u°
line between 7221 Central Avenue and 1241 -
�—�-- -'k--t- C�---- -
72°a Avenue. The existin buildin at 7220 �^°�u^^°�*����° .� ',�,� ,�'•'"°"�"� �a�'-�°°°�°h�-1
g b ,� ;�, c,�ST o.,�} n ;
Central Avenue will be 4 ft.from the newly �" `'�-.soo,s•<,-E f
created property. '?�' ?��•89.23 '
�...�`_, � e�y�sd
..ra"•*,�5' �
, se�-��'srs"�
The City will recognize through the resolution '�-��------- - ------------- ----------- �-
, ;
approving the plat these variations to the code �_ �n •' � � �'
'�-��s.�.��.,«,�.,,,E i
requirements as neither of them will cause L" ',
undue hardship or are contrary to the intent � � � K ! � . .� I
and purpose of the requirement in this _
particular situation. � ` ,
�� a ., � -
o,. �', ;
o,� ,.,n . ",
City.staff hasn't heard from any neighboring �k� N� ' ' '"i
property owners. �i.m � � � ,�
�;�
STAFF RECOMMENDATION �� �
I i
City Staff recommends approval of this � I
preliminary plat request, with stipulations. �
• Proposed lots exceed the size standards ,�, ;
� ���
required by the City of Fridley Zoning ; ,���� ?I?E' t ;
Code.
STIPULATIONS
1. The petitioner shall install a fire suppression system within the existing wastewater treatment
building or the wall between the building and newly created property line shall be retrofitted to
a 3-hour fire-wall, due to the close proximity of the building to the property line.
2. Each building on both parcels shall be assigned an address for police and fire identification.
63
_ AGENDA ITEM
C��°f CITY COUNCIL MEETING OF
� �: Fridley
JAN UARY 5, 2015
Date: December 29, 2014
To: Walter T.Wysopal, City Manage� �
From: Scott Hickok, Community Development Director
Julie Jones, Planning Manager
Stacy Stromberg, Planner
Subject: Resolution Approving Special Use Permit Request, SP#14-09, by Good Deal Auto Sales, Inc.for
the property at 7298 Hwy 65 NE
INTRODUCTION
The petitioner, Haider Algezi, of Good Deat Auto Sales, Inc., is requesting a special use permit in order to
operate a business that will allow the sale and display � t �
L . ,*x^°<. , �Jr f ���� ��� y�,s a1����,�,� �:: ..
of used vehicles at the property located at 7298 Hwy ���p,�„� �� �� -��a� ; ;,�p
65. �� ,��.°.,...."`..,�.�'_�.., ;,._
� � �
?� � --- ��•'r,
Agencies selling or displaying new and/or used � '��`� .� �
vehicles�is a permitted special use in the G2, General �� ���� '"�� � ��� � ' �
�
��..� °�e.. � ,� �� { � �
�� � �.
Business zoning district, subject to stipulations. �, > �- �. �_. �� ��.
,,���� �
�g;,
The petitioner plans to utilize the existing building by , <� � ��
remodeling it for sales/office area, storage and ';�� vg�,,.� �:, � � y �� ;�'��
restrooms. The parking lot boundary will remain the �� ��` ��;�f .�a� ���� ,�`��r -- ; °�
,� �. ��.
same, with the exception of closing the east access � � "` ° �:,� � �' ��= k��
�r�»s� -
point to the site from 73`d Avenue. The west access "�"��� " '" '
� .�'�rs;:.�+�:�.�r''s � ,;<�, Ta ���.:; 9 �` � '�. ; �
off 73�d Avenue will remain as will the access off the � �� �� ��� �� �.;? � '
� � � .
Service Road. The parking lot will be stripped for the " ���� �� .�:� � �. ,.�
R��+'� '�"6f � � � � .
display of the vehicles for sale. The submitted site a_ � ^� �u. ' 4 ;,
�-.`.� _ ,. �.
plan shows 18 parking stalls along the north and east �'-�:�- . .; °.
�^t". , �,: Y+� ��
edge of the parking lot and then four stalls along the '� . �� � � �'� �
west edge for customers. Based on the site plan � �
submitted, no employee parking stalls have been designated. The petitioner does plan to remove the gas
pumps, but leave the canopies and use the area underneath for display of additional vehicles.
PLANNING COMMISSION RECOMMENDATION
At the December 17, 2014 Planning Commission meeting,a public hearing was held for SP#14-09. After
some discussion,the Planning Commission recommended approval of SP#14-09,with the stipulations as
presented by staff.
THE MOTION CARRIED UNANIMOUSLY.
PLANNING STAFF RECOMMENDATION
City Staff recommends concurrence with the Planning Commission and approval of the attached resolution
with the 20 stipulations.
64
STIPULATIONS
. STIPULATION REMOVED AS IT'S BEEN COMPLIED WITH.
1. The underground gasoline/diesel tanks and pumps shall be removed in accordance with an
approved Response Action Plan (RAPJ, approved by the Minnesota Pollution Control Agency(MPCA)
prior to issuance of a building permit for the remodel of the existing building or issuance of the City
license to operate a car sales lot.
2. The petitioner shall apply for any required buildinq permits for the remode/of the existing building.
3. The petitioner shall comply with any and all building,fire and ADA requirements.
4. The existing free-standing sign is located over a sewer line, as a resu/t, the sign shall either be re-
located on-site or an encroachment agreement with the City needs to be executed.
5. The petitioner shall submit a new site p/an designated with customer and employee parking prior to
issuance of a building permit for the remodel of the existing building or issuance of the City license
to operate a car sa/es lot.
6. All parking stalls used on-site shall be designated through parking lot stripping, customer and
employee parking shall be clearly marked. Parking stall size shall comply with code requirements.
7. No vehicles shall be parked in a mannerso as to impede the free travel of vehicles in areas intended
as drive aisles.
8. No employee or customer parking shall be allowed along the Hwy 65 Service Drive or 73'd Avenue.
9. No vehicles parking shall take plpce on any boulevard or green areas.
10. No vehicle washing shall take place outside.
11. No vehicle repair shall take place on-site.
12. The petitioner shall install a new dumpster enclosure.
13. The existinq building and canopies shall be repainted as part of the building remodel. All old
signage from the previous use shall be removed.
14. Any new signage on the building or free-standing sign will required sign permiis.
15. The existing bikeway/walkway easement shall remain free of vehicle parking.
16. The petitioner shall submit a landscape and irrigation plan to City staff for review and approval at
the same time as building permit submittal for remodel.
17. If the petitioner plans to install a fence on the property, the design and material type shall be
reviewed and approved by City sraff.
18. The petitioner shall be responsib/e for litter control on the site and litter shall be cleared from the
site daily.
19. The parking lot shall be properly lighted for security reasons, but needs to be shielded and downcast
to not impact neighboring properties.
20. The petitioner shall prepare and submit to the City a security plan to assure oversight of the storage
lot and to deter crime to the property.
65
City of Fridley Land Use Application
SP#14-09 December 17, 2014
GENERAL INFORMATION SPECIAL INFORMATION
Applicant: SUMMARY OF PROJECT
Good Deaf Auto Sales, Inc. The petitioner, Haider Algezi is requesting a special
Haider Algezi use permit to operate an automobile agency that
5640 7`h Street NE,Apt. #9 sells and displays new and/or used vehicles at the
Fridley MN 55432 property located at 7298 Hwy 65 NE.
Requested Action: SUMMARY OF ANALYSIS
Special Use Permit to allow the selling and City Staff recommends approval of this special use
displaying of vehicles. permit.
Existing Zoning: City Staff recommends approval of this special use
C-2 (General Business) permit request as agencies that sell and display
Location: vehicles are a permitted special use in the C-2,
7298 Hwy 65 NE General Business zoning district, subject to
Size: stipulations.
44,565 sq.ft. 1.02 acres CITY COUNCIL ACTION/60 DAY DATE
Existing Land Use: City Council—January 5, 2015
Vacant Gas Station 60 Day—January 13, 2015
Surrounding Land Use &Zoning: �^ „ _ �
N: Manufactured Home Park& R-4 � `����`���'�'��� '� " �����
�"4.E-.F� �' t :'t'^5 .� t�� ]JRD YLME.a�4 Yd` �" � i� � .
E: Hwy 65 & ROW �r�^�—.�,,--���-���- "A°
i.;,a �.Ks��+�-.., 1'�m. � " �_
'X��
S:Target warehouse and & M-2 � w� �` � ��` � �� �� � �,
W:Target warehouse and & M-2 �,.,� ����`'� ��# � ,�� . � ��.,,����`
, � � -
Comprehensive Plan Conformance: � �# "� �` ��� � A-
� .#d k .�1"' � a �, i
Consistent with Plan �.��� �t ' - �` �,: �' . ���� � '�' � "-�
!� , ;. �+t��, ��.� . � ��;
Zoning Ordinance Conformance: !� 4�,� . � s�
Sec. 205.14.01.C.(3) requires a special use t��, �- ���� ,��� � ���� �, �:_ ��� � � '{���
� x��` 1'.t�;'• ' 1r. �
permit for agencies selling or disptaying y � ` �� �'�; � � ��r
N�.$ � V � '$': uY' # I
Y � � '�S "�y 3�� t `
recreational vehicles in the G2 zoning �� �� �. � _, ��
�»� ».a.,�.� - � � �
district. � ��`� '� �"� '� � �
�� � ��
4 �'� �.f 9
t
��i� ;� ., C� ��'1�'' � � � �
Zoning History: ���;���.�� �� a ,
1961—Lot platted. ���''"'�� � �� ��- �j
.. e ,d",�^—M "Y .�S
1971—Service Station constructed. � ���r q �,y ��� �. ,�
1971—Pylon sign constructed. � `� �. '
�w �� �� � �y.
� �` +.: w �i � � � .
Legal Description of Property: � `��
�� ��u � U � � ��� t
Attached is packet. Aerial�of the subject property
Public Utilities: Staff Report Prepared by: Stacy Stromberg
Building is connected.
Transportation:
The property receives access from 73`a
Avenue and the Hwy 65 Service Drive.
Physical Characteristics:
Lot consists of the building, gas canopies,
hard surface area with minimal landscaped
areas.
66
Land Use Application
Special Use Permit #14-09
RE UEST
The petitioner, Haider Algezi, of Good Deal Auto Sales, Inc., is requesting a special use permit in order to
operate a business that will allow the sale and display of used vehicles at the property located at 7298
Hwy 65.
The use of the property as an automobile service station is no longer in business.
HISTORY AND ANALYSIS
The subject property is located on the southwest �
1311 1311 1311 TJ11 1)li
corner of 73`d Avenue and Highway 65. It is zoned G So�TH«R<<FHE m
�� � .�
2, General Business. In 1971, the property was ,,,i,,,,, ,,,, „1,,,1, „1,,,11 g
rezoned from M-2, Heavy Industrial to G2, General "
73ADAVE NC y3 O AVE NE 7JRD AYE/� �3ADAYE NE
Business. A special use permit was also issued in 1971
to allow a gas station. As a result of the rezoning and
special use permit approval,the existing gas station
building was constructed. The property has remained '�°
,�,'
a gas station since. Within the last few months the gas �
station has closed and currently the property is vacant ' ar�
�,SEN VE Cf�
of any business.
Agencies selling or displaying new and/or used y
vehicles is a permitted special use in the C-2, General 5
Business zoning district, subject to stipulations. b � „ _ .
The petitioner plans to utilize the existing building by ^ �
remodeling it for sales/office area, storage and
restrooms. The parking lot boundary will remain the � ""
same, with the exception of closing the east access �
point to the site from 73`d Avenue. The west access off 73`d Avenue will remain as will the access off the
Service Road. The parking lot will be stripped for the display of the vehicles for sale. The submitted site
plan shows 18 parking stalls along the north and east edge of the parking lot and then four stalls along
the west edge for customers. Based on the site plan submitted, no employee parking stalls have been
designated. The petitioner does plan to remove the gas pumps, but leave the canopies and use the area
underneath for display of additional vehicles.
There are (4) underground gas tanks, which will be required to be removed to MPCA standards prior to
operation of this business. It is unclear based on the information submitted whether any exterior
improvements are being proposed to the site.
Though staff believes this use isn't ideal for this site due to the shape and size of the lot,the use may
work only if it strictly adheres to the stipulations suggested by staff. These stipulations are typical of
what has been previously approved for other outdoor car sales lots in Fridley.
STAFF RECOMMENDATION
City Staff recommends approval of these special use permits, with stipulations.
Agencies selling or displaying new and/or used vehicles are an approved special use permit in
commercial zoning districts, provided stipulations can be met.
67
STIPULATIONS
City staff recommends if the special use permit is approved,the following stipulations be attached.
1. The property owner shall sign the specia/use permit application prior to filing of the reso/ution
for this special use permit at Anoka County.
2. The underground gasoline/diesel tanks and pumps shall be removed in accordance with an
approved Response Action Plan (RAP), approved by the Minnesota Pollution Control Agency
(MPCA)prior to issuance of a building permit for the remodel of the existing building or issuance
of the City license to operate a car sales lot.
3. The petitioner shall apply for any required building permits for the remodel of the existing
building.
4. The petitioner shall comply with any and all building,fire and ADA requirements.
5. The existing free-standing sign is located over a sewer line, as a result, the sign shall either be re-
located on-site or an encroachment agreement with the City needs to be executed.
6. The petitioner shall submit a new site plan designated with customer and employee parking prior
to issuance of a building permit for the remodel of the existing building or issuance of the City
license to operate a car sa/es/ot.
7. All parkinq stalls used on-site shall be designated through parking lot stripping, cusromer and
employee parking shall be clearly marked. Parking stall size shall comply with code
requirements.
8. No vehicles shall be parked in a manner so as to impede the free travel of vehicles in areas
intended as drive aisles.
9. No employee or customer parking shall be allowed along the Hwy 65 Service Drive or 73rd
Avenue.
10. No vehicles parking shaU take place on any bou/evard or green areas.
11. No vehicle washing shall take p/ace outside.
12. No vehicle repair shall take place on-site.
13. The petitioner shall insiall a new dumpster enclosure.
14. The existing building and canopies shall be repainted as part of the building remodel. All old
signage from the previous use shall be removed.
I5. Any new signage on the building or free-standing sign will required sign permits.
16. The existing bikeway/walkway easement shall remain free of vehicle parking.
17. The petitioner shall submit a landscape and irrigation plan to City staff for review and approva!
at fhe same time as building permit submitral for remodel.
18. If the petitioner plans to install a f.ence on the property, the design and material type shall be
reviewed and approved by City staff.
19. The petitioner shall be responsible for litter control on the site and litter shall be cleared from rhe
site daily.
20. The parking lot shall be properly lighted for security reasons, but needs to be shielded and
downcast to not impact neighboring properties.
21. The petitioner shall prepare and submit to the City a security plan to assure oversight of the
storage lot and to deter crime to the property.
68
RESOLUTION NO. 2015 -
A RESOLUTION APPROVING SPECIAL USE PERMIT,SP#14-09 FOR OUTDOOR
USED AUTO SALES,PETITIONED BY GOOD DEAL AUTO SALES,INC. ON BEHALF
OF SHRANJIT SINGH,THE PROPERTY OWNER FOR THE PROPERTY LOCATED
AT 7298 HWY 65 NE
WHEREAS, Section 205.14.1.C.(2) of the Fridley City Code allows automobile agencies selling or
displaying new and/or used vehicles in the C-2, General Business zoning district by a special use
permit; and
WHEREAS, on December 17, 2014, the Fridley Planning Commission held a public hearing to
consider a request by Good Deal Auto Sa1es, Inc. for the property located of 7298 Hwy 65 NE in
Fridley, legal description attached as E�chibit A, for a Special Use Pernut SP# 14-09 for an outdoor
used automobile sales use; and
WHEREAS, on December 17, 2014, the Planning Commission unanimously recommended
approval of Special Use Permit, SP#14-09; and
WHEREAS, on January 5, 2015, the Fridley City Council approved the stipulations represented in
Exhibit B to this resolution as the conditions approved by the City Council on Special Use Permit
SP# 14-09; and
WHEREAS, Section 205.OS.S.G of the Fridley City Code states that this special use permit will
become null and void one year after the City Council approval date if work has not commenced or if
the petitioner has not petitioned the City Council for an extension; and
WHEREAS, the petitioner, was presented with Exhibit B, the stipulations for SP# 14-09, at the
January 5, 2015 City Council meeting and has agreed to abide by said stipulations in order to
maintain SP# 14-09;
NOW, THEREFORE, BE IT RESOLVED, that Special Use Permit SP# 14-09 and stipulations
represented in Exhibit B are hereby adopted by the City Council of the CiTy of Fridley.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 5�
DAY OF JANiJARY,2015.
SCOTT LUND—MAYOR
ATTEST:
DEBRA A. SKOGEN - CITY CLERK
69
EX�IIBIT A
SP# 14-09 Special Use Permit for Outdoor Used Vehicle Display and Sales
Good Deal Auto Sales,Inc.—7298 Hwy 65 NE,Fridley,MN 55432
Le�al Description for 7298 Hwv 65:
That part of Lot 1, Block 1,Fridley Industrial Park Plat 1, which lies Easterly and Northeasterly of the
following described line to wit.
Commencing at the Northwest corner of said Lot 1;thence East along the North line of said Lot l on an
assumed bearing of South 89 degrees 38 minutes East for a distance of 5 feet to the point of beginning of
the line to be described;thence south 0 degrees 24 minutes 20 seconds East a distance of 15 feet;thence
southeasterly on a tangential curve to the left with a radius of 205.58 feet,a distance of 211.07 feet;
thence South 59 degrees 14 minutes 11 seconds East,tangent to last curve,a distance of 8.11 feet;thence
on a tangential curve to the right with a radius of 260.82 feet a distance of 128.86 feet,more or less,to its
intersection with the East line of said Outlot 1, Block l, Fridley Industrial Park Plat 1 and there
terminating, Anoka County, Minnesota.
Except that part of said Lot 1, lying Northwesterly of the following described line to-wit:
Commencing at the Northwest corner of said Lot 1;thence East along the North line of said Lot 1 on an
assumed bearing of South 89 degrees 36 minutes East for a distance of 50 feet;thence Southwesterly on a
curve concave to the Southeast and tangent to said North line,with a radius of 50 feet to its intersection
with the above described line and there terminating,according to the recorded plat thereof.
That part of Outlot l, Block 1, Fridley Industrial Park Plat 1 which lies Easterly and Northeasterly of the
following described line to-wit.
Commencing at the Northwest corner of said Lot 1;thence East along the North line of said Lot 1 on an
assumed bearing of South 89 degrees 36 minutes East for a distance of 5 feet to the point of beginning of
the line to be described; thence South 0 degrees 24 minutes 20 seconds East a distance of 15 feet;thence
Southeasterly on a tangential curve to the left with a radius of 205.56 feet,a distance of 211.07 feet;
thence Southeasterly on a tangential curve to the left with a radius of 205.56 feet,a distance of 211.07
feet;thence South 59 degrees 14 minutes 11 seconds East,tangent to last curve,a distance of 8.11 feet;
thence on a tangential curve to the right with a radius of 260.82 feet a distance of 128.86 feet,more or
less,to its intersection with East line of said Outlot 1 and there terminating, according to the recorded plat
thereof,Anoka County,Minnesota.
70
EXHIBIT B
SP# 14-09 Special Use Permit for Outdoor Used Vehicle Display and Sales
Good Deal Auto Sales,Inc.—7298 Hwy 65 NE,Fridley,MN 55432
Stiuulations:
1. The underground gasoline/diesel tanks and pumps shalt be removed in accordance with an
approved Response Action Plan (RAP), approved by the Minnesota Pollution Control Agency
(MPCA)prior to issuance of a building permit for the remodel of the existing building or issuance
of the City license to operate a car sales lot.
2. The petitioner shall apply for any required building permits for the remodel of the existing
building.
3. The petitioner shall comply with any and all building,fire and ADA requirements.
4. The existing free-standing sign is located over a sewer line,as a result,the sign shall either be re-
located on-site or an encroachment agreement with the City needs to be executed.
5. The petitioner shall submit a new site plan designated with customer and employee parking prior
to issuance of a building permit for the remodel of the existing building or issuance of the City
license to operate a car sales lot.
6. All parking stalls used on-site shall be designated through parking lot stripping,customer and
employee parking shall be clearly marked. Parking stall size shall comply with code
requirements.
7. No vehicles shall be parked in a manner so as to impede the free travel of vehicles in areas
intended as drive aisles.
8. No employee or customer parking shall be allowed along the Hwy 65 Service Drive or'73rd
Avenue.
9. No vehicles parking shall take place on any boulevard or green areas.
10. No vehicle washing shall take place outside.
1 l. No vehicle repair shall take place on-site.
12. The petitioner shall install a new dumpster enclosure.
13. The existing building and canopies shall be repainted as part of the building remodel. All old
signage from the previous use shall be removed.
14. Any new signage on the building or free-standing sign will required sign permits.
15. The existing bikeway/walkway easement shall remain free of vehicle parking.
16. The petitioner shall submit a landscape and irrigation plan to City staff for review and approval at
the same time as building permit submittal for remodel.
17. If the petitioner plans to install a fence on the property,the design and material type shall be
reviewed and approved by City staff.
18. The petitioner shall be responsible for litter control on the site and litter shatl be cleared from the
site daily.
19. The parking lot shall be properly lighted for security reasons,but needs to be shielded and
downcast to not impact neighboring properties.
20. The petitioner shall prepare and submit to the City a security plan to assure oversight of the
storage lot and to deter crime to the property.
71
�=� AGENDA ITEM
Fr;�eY CITY COUNCIL MEETING OF
JAN UARY 5, 2015
Date: December 31, 2014
To: Walter T. Wysopal, City Manage
From: Scott Hickok, Community Development Director
Julie Jones, Pianning Manager
Stacy Stromberg, Planner
Subject: Resolution Approving Final Plat, PS#14-01, Tri-Land Development
REQUEST
On Monday,January 27, 2014, Preliminary Plat, PS#14-01 was approved for the property at 250 57tn
Avenue (Cub Foods) to __ ""'�°° � �--°• �
-- - ' - -- - .,,,�J °4.,.._.-._._._._..�.�,;.f
subdivide the existing �a^°�,���-��- - -- �TrH nvE�uE NE au�r�°ir Rci� rvo. �az) �
: _ .—
lar e lot•to create two ��'�` '"""' Y
g � {�uHUC�,�r)x I �
r - I I s ava a�'E �a .R � _ c�r
(2) separate parcels =-==if � _y.� ��-�*�—��s , ri=�.�,�,�° ,l,,^� + s ,.»..�..L--r--����
from the original lot; � ' w " ' * I � ?`a �� '*�t+ �;�' -� � '��" ' d
��:»
for development along � i �..a,�....,,..,,a ��: ' t- � �.t�� ��� ������ � ��� `� � ��,�:.�, �t ,-
th � � � t. � � �„ �* � ��. e ���� � n �� �} ��
57 Avenue. I «
� � 'u � a�'" ������u� �����d ��s''� " � :a � � � � i a � st �„� ^�' �
� �i-� � °'<5 �.v s �� &:er �a��,��£f� � °'� z'�*�' �` �
?�`y R�w }
�_ � . , �� J. � � _``� �Iht �s&.� dS�'� `��,',��G�' . a��; y�d i
Once the preliminary ' i � � � r``'` °� I�` r : � � "`������'"��'�`'�` ��
� � - ;; ���z:, r� .«'�_ a_��� { .� t=�:�
�
lat is a roved, the I i ���1 � ? � '" "� ` �
pPp � s � �� v ,� �, �. : �, ��__ �
� � �'r �> 1 � . .� �'., ,y � � . � ;r
petitioner has 60 days ' ; , ���� . � � ���, �:� ,,��_ , ��; � � ;. y, '�
���� I
to bring the final plat �--� �• � ' �fi� �;��� �� �.� s�, - ,�,W� � � � {. �� � �-�
�� ' � � �. �
back before the City � I� ', � �, � �, I��.��
�j� � � x , �_,� � , i �, �� �. ��s�"����Gvv, � � �
CounciL �� , = �_� �,
I� - � � . � � I � - ; �f �i��
�j . _t � � �p � � I �i� 1 , ���1 ' � i'
t .sy.� ��;.�., �.�..�... '�_ 3 � _�,! � � 'T� � .�.i `� � F_��'+'
The petitioner has is -: � ti.:. ... : 1_ ., 4 _�._.� ._ �_.��„� _,��
applied for several 60 °I� , ' �+a ^^�^- > ' �° ` ` ;
da extensions to get c�� � , `� = ti ` g ��p�+ � � � > -g � g � `��
Y � ��� e �zjR�yS&�s �"a f>�a ��§d�g� � x�s�,�; ae� � '
the necessary utility , .�� ������' .� ��'�� � � � . =�� a°��"
easements documents signed and filed. All those documents have now been signed and are ready for
filing. These documents will need to be filed prior to filing of the plat.
The final plat is now ready for approval and signatures by the City.
RECOMMENDATION
City staff recommends approval of final plat; PS#14-01, and the attached resolution.
STI PU LATI ONS
1. The purpose of this p/at request is for development and finance purposes. Lots 2 and 3 shall not be
separated from the PUD zoning designation unless al!three/ots within this development are re-
evaluated and the City agrees the PUD can be modified to reflect that chanqe.
72
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pua�-ul uaaM.�aq�uauaaaa6n 6ui�and paaays a�(�uno� n�ouy�a a�►�pua ys►�qa�sa��nysaauoi��;ad ayl '£
ybnoaddo�n�d�au��uodn '�a�anW�ta�piaj 't��o�s '�pun Z s�o7 pun •�u�s�uauado�anaQ
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RESOLUTION NO. 2015 -
RESOLUTION APPROVING FINAL PLAT, P.S. #14-01 BY ZCOF TL FRIDLEY LLC,
THE PROPERTY OWNER OF 250 57T" AVENUE NE, TO CREATE TWO
ADDITIONAL PARCELS OF LAND
WHEREAS, the Planning Commission held a public hearing on January 15, 2014, and
recommended approval of said plat; and
WHEREAS, the City Council approved the preliminary plat for FRIDLEY MARKET at their
January 27, 2014 meeting; and
WHEREAS, the petitioner is providing the City with a water main and sanitary sewer easement
that needs to be recorded at Anoka County Records office, prior to final plat filing; and
WHEREAS, the City Council approved the final plat of FRIDLEY MARKET at their January 5,
2015 meeting; and
WHEREAS, a copy of the final plat FRIDLEY MARKET has been attached as Exhibit B;
WHEREAS,the stipulations of the final plat have been modified as represented in Exhibit A
attached;
NOW, THEREFORE, BE IT RESOLVED, that the City Council approves the Final Plat for
FRIDLF,Y MARKF_,T and directs the petitioner to record the plat at Anoka County within six
months of this approval or such approval shall be null and void.
PASSEll AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS
STH DAY OF JANUARY 2015.
SCOTT LUND -MAYOR
ATTEST:
DEBRA A. SKOGEN - CITY CLERK
74
Page 2 — Resolution -2015— FRIDLEY MARKET
EXHIBIT A
STIPULATIONS
1. The purpose of this plat request is for development and finance purposes. Lots 2 and 3
shall not be separated from the PUD zoning designation unless all three lots within this
development are re-evaluated and the City agrees the PUD can be modified to reflect that
change.
2. The petitioner shall establish and file at Anoka County a shared access agreement
between Tri-land Developments Inc. and Lots 2 and 3, Block l, Fridley Market, upon
final plat approval.
3. The petitioner shall establish and file at Anoka County a shared parking agreement
between Tri-land Developments Inc. and Lots 2 and 3, Block 1, Fridley Market, upon
final plat approval.
4. The petitioner shall pay park dedication fee for Lot 2 of$722,33 and Lot 3 of$633.23
upon issuance of a building permit for a building for Lot 3.
5. The City shall retain final plat mylars until the water main and sanitary sewer easements
have been recorded at Anoka County. At which time the documentation of the recording
has been provided to the City, the mylars will be released to the petitioner far filing.
75
HIB T B
D�m�• �� FRIDLEY MARKET CO N7YFOFRID�L�
�or
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— manavwusoaeatrox�r.� x�c
AGENDA ITEM
� � CITY COUNCIL MEETING OF
��r
Fndley JAN UARY 5, 2015
�
To: Walter T. Wysopal, City Manager �
From: Debra A. Skogen, City Clerk �
Date: December 31, 2014
Re: Resolution Designating Official Newspaper for the Year 2015
Minnesota Statutes Section 311A and Fridley City Charter Section 12.01 require the designation
of an official newspaper for the publishing of public notices authorized by law or by order of the
court. A newspaper who desires to be a qualified newspaper for the purposes of the City of
Fridley must fulfill the distribution requirements of MN Statute Section 331 A.02, Subd. 1(d) in
the City of Fridley:
331A.02 REQUIREMENTS OF A QUALIFIED NEWSPAPER
Subdivision 1. Qualification. No newspaper in this state shall be entitled to any
compensation or fee for publishing any public notice unless it is a qualified
newspaper. A newspaper that is not qualified must inform a public body that
presents a public notice for publication that it is not qualified. To be qualified, a
newspaper shall:
(d) be circulated in the political subdivision which it purports to serve, and either
have at least 400 copies regularly delivered to paying subscribers, or 250 copies
delivered to paying subscribers if the political subdivision it purports to serve has
a population under 1,300, or have at least 400 copies regularly distributed without
charge to local residents, or 250 copies distributed without charge to local
residents if the political subdivision it purports to serve has a population under
1,300.
The City received only one bid from the Fridlev Sun Focus to be the off'icial newspaper of the
City and provided a certified audit of circulation showing they meet the circulation requirement
shown above. .
Attached is a resolution designating the Fridlev Sun Focus News as the official legal newspaper
of the City of Fridley for the year 2015. The Minneapolis Star Tribune is designated as the City
of Fridley's second official newspaper for the year 2015.
77
RESOLUTION NO. 2015 -
RESOLUTION DESIGNATING AN OFFICIAL NEWSPAPER
FOR THE YEAR 2015
WHEREAS, Minnesota Statutes Section 311A and Fridley City Charter Section 12.01 require
the designation of an official newspaper for the publishing of public notices authorized by law or
by order of the court; and
WHEREAS, A newspaper who desires to be a qualified newspaper for the purposes of the City
of Fridley must fulfill the distribution requirements of MN Statute Section 331A.02, Subd. 1(d)
in the City of Fridley; and
WHEREAS, the Fridley Sun Focus has provided a bid for the cost of legal publications and has
shown proof that it has met the state's circulation requirement of having at least 400 copies
regularly distributed without charge to local residents.
NOW, THEREFORE, BE IT RESOLVED that the Sun Focus News is designated as the official
legal newspaper for the City of Fridley for the year 2015 for all legal publications required to be
published therein.
BE IT FURTHER RESOLVED that the Minneapolis Star and Tribune be designated as the City
of Fridley's second official newspaper for the year 2015.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS
STH DAY OF JANUARY 2015.
SCOTT J. LIJND -MAYOR
ATTEST:
DEBRA A. SKOGEN - CITY CLERK
78
� AGENDA ITEM
�,:�
� �'�°f CITY COUNCIL MEETING OF
Fridley
JANUARY 5, 2015
To: Wally Wysopal, City ManaL���
From: Darin R.Nelson, Finance Director ��
Date: December 28,2014
Re: Resolution Designating Official Depositories
Attached is a resolution appointing Wells Fazgo Bank Minnesota N.A. as the City's official depository for
2015.
The service we receive from Wells Fargo has been first-rate. Wells Fargo is responsive to not only our
requests for information, but also in regards to other banking issues that may arise. Part of the services
the city receives from Wells Fargo includes an assigned business relationship manager. This relationship
manager is familiar with our banking needs and more importantly our city staff. Staff is in contact with
this person on at least a weekly basis.
In today's world of an increasing demand for electronic banking, Wells Fargo Bank provides a one-stop
shop for the city's required banking needs. This proves to be both beneficial and efficient, since the
City's banking needs are quite complex. We not only have accounts payable and payroll checks to cut on
a regular basis,but daily deposits from liquor sales and utility billing add to the complexity of our ba.nking
needs. In addition, we have routine direct deposits coming into our account from various governmental
agencies.
Wells Fargo also monitors our daily cash balances to assure our deposits are fully collateralized. This
assures the City that our deposits are safe and not subject to loss if the bank were to fail. This daily
monitoring is critical, since the City can experience large swings in cash balances at different points
throughout the year.
Staff recommends a motion adopting a resolution designating official depositories for the City of Fridley.
79
RESOLUTION NO.2015-
RESOLUTION DESIGNATING OFFICIAL DEPOSITORIES FOR THE CITY OF FRIDLEY
I, Darin R. Nelson, do hereby certify that I am Finance Director-Treasurer of the City of Fridley, a corporation
organized under the laws of the State of Minnesota. I further certify that at a meeting of said corporation duly and
properly called and held on the Sth day of January, 2015, the following resolution was passed; that a quorum was
present at said meeting; and that said resolution is set forth in the minutes of ineeting and has not been rescinded or
modified.
IT IS HEREBY RESOLVED,that Wells Fargo Bank Minnesota N.A.is hereby designated as a depository for the funds
of this corporation.
IT IS FLTRTI�R RESOLVED, that checks, drafts or other withdrawal orders issued against the funds of this
corporation on deposit with said bank sha11 be signed by two of the following:
Walter T.Wysopal,City Manager
Darin R.Nelson,Finance Director-Treasurer
Shelly M.Peterson,Assistant Finance Director
and that said bank is hereby fully authorized to pay and charge to the account of this corporation any checks, drafts, or
other withdrawal orders.
BE IT FiJRT'I�R RESOLVED, that Wells Fargo Banks as a designated depository of the corporation is hereby
requested, authorized and directed to honor checks, drafts or other orders for the payment of money drawn in this
corporation's name, including those drawn to the individual order of any person or persons whose name or names
appear thereon as signer or signers thereof, when bearing or purporting to bear the facsimile signatures of two of the
following:
Walter T.Wysopal,City Manager
Darin R.Nelson,Finance Director-Treasurer
Shelly M.Peterson,Assistant Finance Director
and Wells Fargo Banks shall be entitled to honor and to charge this corporation for all such checks, drafts or other
orders, regardless of by whom or by what means the facsimile signature or signatures thereon may have been affixed
thereto, if such facsimile signature or signatures resemble the facsimile specimens duly certified to or filed with Wells
Fargo Banks by the City Clerk or other officer of his corporation.
BE TT FLTRT'HER RESOLVED,that any and all resolutions heretofore adopted by the City Council of the corporation
and certified to as governing the operation of this corporation's account(s) with it,be and are hereby continued in full
force and effect,except as the same may be supplemented or modified by the foregoing part of this resolution.
BE IT FLJRTHER RESOLVED, that all transactions, if any relating to deposits, withdrawals, re-discounts and
borrowings by or on behalf of this corporation with said bank prior to the adoption of this resolution be, and the same
hereby are,in all thi.ngs ratified,approved and confirmed.
BE TT FLJRTHER RESOLVED,that any bank ar savings and loan may be used as depositories for investment purposes
so long as the investments comply with authorized investments as set forth in Minnesota Statutes.
BE TT FURTHER RESOLVED, that the signatures of two of the following named City employees are required for
withdrawal of City investment funds from savings and loan associations:
Walter T.Wysopal,City Manager
Darin R.Nelson,Finance Director-Treasurer
Shelly M.Peterson,Assistant Finance Director
80
BE TI'FURTI�R RESOLVED, that any brokerage firm may be used as a vendor for investment purposes so long as
the investments comply with the authorized investments as set forth in Minnesota Statutes.
I further certify that the Council of this corporation has, and at the time of adoption of said resolution had, full power
and lawful authority to adopt the foregoing resolutions and to confer the powers therein granted to the persons named
who have full power and lawful authority to exercise the same.
PASSED AND ADOPTED BY THE CITY COUNCIL OF'TI-�E CITY OF FRIDLEY THIS 5`�DAY OF JANUARY,
2015.
SCOTT J.LiJND-MAYOR
ATTEST:
DEBRA A.SKOGEN-CITY CLERK
81
� AGENDA ITEM
� C1TY COUNCIL MEETiNG OF JANUARY 5, 2015
qTY OF
FRIDLEY
2015 CITY COUNCIL AND STAFFAPPOINTMENTS
2014 REPRESENTATIVE 2015 APPOINTEE EXPIRES
Mavor Pro Tem:
Councilmember-at-Large Barnette 12-31-15
Anoka Countv Law Enforcement Council:
Councilmember-at-Large Barnette, Rep. 12-31-15
Councilmember Varichak, Alternate 12-31-15
Metro Cities:
Mayor Lund, Delegate 12-31-15
Councilmember Bolkcom, Alternate 12-31-15
Lea�ue of Minnesota Cities:
Councilmember Bolkcom, Rep. 12-31-15
Councilmember Saeflce, Alternate 12-31-15
Mississippi Watershed Management Or�anization:
Councilmember Saefke, Commissioner 12-31-15
Councilmember Varichak,Alternate 12-31-15
School District No. 13:
Councilmember-at-Large Barnette,Rep. � 12-31-15
Councilmember Bolkcom,Alternate 12-31-15
School District No. 14:
Councilmember-at-Large Barnette, Rep. 12-31-15
Councilmember Bolkcom, Alternate 12-31-15
School District No. 16:
Councilmember Saefke, Representative 12-31-15
Councilmember Varichak, Alternate 12-31-15
Northstar Corridor Development Authoritv:
Councilmember-at-Large Barnette,Rep. 12-31-15
Paul Bolin, Alternate 12-31-1 S
Twin Cities Gatewav:
Debra A. Skogen, City Clerk 12-31-15
Anoka Countv Fire Protection Council Councilmember Varichak,Rep. 12-31-15
82
- AGENDA ITEM
� �Fridley CITY COUNCIL MEETING OF JANUARY 5, 2015
Appointment
Starting Start
Name Position Sa1ary Date Replaces
Aaron Public Services $19.24 Jan. 6, Kory
O'Connell Worker -Water per hour 2015 Jorgensen
83
� AGENDA ITEM
Fridley COUNCIL MEETING OF JANUARY 5, 2015
CLAIMS
CLAIMS
166681 - 166795
84
PREPARED O1/02/2015, 9:39:49 A/P CHECKS BY PERIOD AND YEAR PAGE 1
PROGRAM: GM350L
CITY OF FRIDLEY FROM 12/22/2014 TO O1/02/2015 BANK CODE 00
------------------------------------------------------------------------------------------------------------------------------------
CHECK CHECK CHECK
DATE NUMBER VENDOR NAME VENDOR" # AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
ACCOUNT # TRN DATE DESCRIPTION INVOICE PO # PER/YEAR TRN AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
O1/02/2015 166681 ANOKA COUNTY TREASURER 1048 156.36
101-0440-425.42-12 12/30/2014 FUEL FOR DTF CRESTIK H141230B 13/2014 156.36
O1/02/2015 166682 ADVANCE COMPANZES INC 1061 180.00
101-0440-425.43-40 12/17/2014 WINDOW SECURED 8787 13/2014 180.00
O1/02/2015 166683 AT & T MOBILITY 1116 4,300.62
101-0333-415.43-32 12/17/2014 CELL PHONES 541144X12252014 13/2014 108.80
101-0220-415.43-32 12/17/2014 CELL PHONES 541144X12252014 13/2014 48.88
225-0000-415.43-32 12/17/2014 CELL PHONES 541144X12252014 13/2014 48.88
101-0440-425.43-32 12/17/2014 CELL PHONES 541144X12252014 13/2014 1,242 .88
101-0441-425.43-32 12/17/2014 CELL PHONES 541144X12252014 13/2014 120.60
101-0550-425.43-32 12/17/2014 CELL PHONES 541144X12252014 13/2014 318.83
101-0661-435.43-32 12/17/2014 CELL PHONES 541144X12252014 13/2014 332.28
101-0669-435.43-32 12/17/2014 CELL PHONES 541144X12252014 13/2014 101.53
101-0880-465.43-32 12/17/2014 CELL PHONES 541144X12252014 13/2014 99.84
101-0881-465.43-32 12/17/2014 CELL PHONES 541144X12252014 13/2014 34.99
101-0882-465.43-32 12/17/2014 CELL PHONES 541144X12252014 13/2014 98.80
101-0770-455.43-32 12/17/2014 CELL PHONES 541144X12252014 13/2014 68.76
601-7000-415.43-32 12/17/2014 CELL PHONES 541144X12252014 13/2014 284 .46
602-7000-415.43-32 12/17/2014 CELL PHONES 541144X12252014 13/2014 216.19
101-0668-435.43-32 12/17/2014 CELL PHONES 541144X12252014 13/2014 377.76
� 101-0666-435.43-32 12/17/2014 CELL PHONES 541144X12252014 13/2014 262.17
� 101-0661-435.43-32 12/17/2014 CELL PHONES 541144X12252014 13/2014 34.99
101-0550-425.42-25 12/17/2014 CELL PHONE 541144X12252014 13/2014 199.99
101-0333-415.42-25 12/17/2014 CELL PHONE 541144X12252014 13/2014 299.99
O1/02/2015 166684 APACHE PRINT INC 1147 178.13
101-0770-455.43-35 12/22/2014 NEWSLETTER PRINTING 46152 13/2014 178.13
O1/02/2015 166685 ADVANTAGE SIGNS & GRAPHICS INC 1199 1,680.00
101-0668-435.42-22 12/24/2014 CITY WELCOME SIGN 23879 13/2014 1,680.00
O1/02/2015 166666 ASPEN EQUIPMENT CO 1200 144.85
101-0550-425.42-17 12/23/2014 UNIFORM 158477 13/2014 144.85
O1/02/2015 166687 AMERICAN DIVERSITY 1297 304.17
101-0331-415.42-21 12/18/2014 W-9,W-4 'S, ENVELOPES 00537174 13/2014 304 .17
O1/02/2015 166688 JOHN BERG 2020 193.49
101-0550-425.43-37 12/15/2014 REIMB AIRFARE CHIEF CONF 13/2014 193 .49
O1/02/2015 166689 SOLTON & MENK, INC 2046 6,724.00
406-0006-435.43-30 12/17/2014 OSBORNE SERV RD PLAN 173390 13/2014 710.00
101-0661-435.43-30 12/17/2014 PAVEMENT RATING ANALYSIS 173499 13/2014 6, 014.00
O1/02/2015 166690 BOND TRUST SERVICES CORP 2136 3,150.00
390-0000-475.46-20 12/10/2014 36445-PA 2010C GO IMP BND 11575 O1/2015 450.00
380-2012-475.46-20 12/10/2014 36597-PA 2012A GO EQUIP 11576 O1/2015 450.00
PREPARED O1/02/2015, 9:39:49 A/P CHECKS BY PERIOD AND YEAR PAGE 2
PROGRAM: GM350L
CITY OF FAIDLEY FROM 12/22/2014 TO O1/02/2015 BANK CODE 00
------------------------------------------------------------------------------------------------------------------------------------
CHECK CHECK CHECK
DATE NUMBER VENDOR NAME VENDOR # AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
ACCOUNT # TRN DATE DESCRIPTION INVOICE PO # PER/YEAR TRN AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
385-0000-475.46-20 12/10/2014 30164-PA 2005A GO IMP BD 11579 O1/2015 450.00
601-8902-475.46-20 12/10/2014 34215-PA 2008B GO WTR REV 11581 O1/2015 450.00
387-0000-475.46-20 12/10/2014 32822-PA 2007A GO IMP BD 11577 O1/2015 450.00
386-0000-475.46-20 12/10/2014 31667-PA 2006A GO IMP BD 11580 O1/2015 450.00
388-0000-475.46-20 12/10/2014 34214-PA 2006A GO IMP BD 11578 O1/2015 450.00
Ol/02/2015 166691 BLAINE BROTHERS 2216 225.00
101-0669-435.43-40 12/10/2014 SUBLET TOW TO MACK 101203699 13/2014 225.00
O1/02/2015 166692 BLAINE AREA PET HOSPITAL,PA 2221 24 .67
101-0440-425.42-21 12/22/2014 K-9 OINTMENT 103249 13/2014 24 .67
O1/02/2015 166693 LIZ CHEVALIER 3075 59.72
101-0440-425.42-21 12/22/2014 REIMB SHOP W/COP SUPPLIES 13/2014 59.72
O1/02/2015 166694 CORPORATE 4 INSURANCE AGENCY 3109 5,000.00
704-0000-415.43-36 12/16/2014 2015 AGENT FEE 951547 O1/2015 5,000.00
O1/02/2015 166695 CALIBRE PRESS INC 3116 278.00
101-0440-425.43-37 12/23/2014 REGISTRATION-VOLK,KOTCHEN 22968,22974 O1/2015 278.00
O1/02/2015 166696 CUB FOODS INC 3127 39.13
270-0771-455.42-21 12/19/2014 SUET 13/2014 39.13
00
� /02/2015 166697 CENTRAL TURF & IRRIGATION SUPP 3131 1,062.94
101-0666-435.42-22 12/29/2014 IRRIGATION SUPPLIES 604156200 13/2014 1, 062.94
O1/02/2015 166698 COMCAST CABLE 3157 314.71
225-0000-415.43-40 12/23/2014 CABLE FEES 772106210044545 O1/2015 314.71
O1/02/2015 166699 COMCAST CABLE 3157 233 .77
101-0333-415.43-32 12/23/2014 INTERNET 772106210272773 O1/2015 233 .77
O1/02/2015 166700 COMCAST CABLE 3157 224 .78
609-9200-415.43-32 12/13/2014 INTERNET,PHONE 772106210350223 O1/2015 224 .78
O1/02/2015 166701 CENTURY COLLEGE CONT EDUCATION 3171 464.00
101-0440-425.43-37 12/30/2014 TRAINING DEC 14-AUG 2015 565497 O1/2015 464.00
O1/02/2015 166702 CENTERPOINT ENERGY-MINNEGASCO 3252 7,328.15
101-0550-425.43-38 12/15/2014 UTILITIES 80000141459 13/2014 595.38
101-0666-435.43-38 12/15/2014 UTILITIES 80000141592 13/2014 593.48
601-7000-415.43-38 12/15/2014 UTILITIES 80000141624 13/2014 2,657.72
101-0669-435.43-38 12/15/2014 UTILITIES 80000141533 13/2014 418 .19
101-0660-415.43-38 12/15/2014 UTILITIES 80000141491 13/2014 3,063.38
O1/02/2015 166703 RICK CHASE 3281 20.00
101-0770-455.43-40 12/23/2014 CHORES/MORE 13/2014 20.00
O1/02/2015 166704 CENTURY LINK 3295 249.71
601-7000-415.43-32 12/22/2014 PHONE SERVICE 5711683 13/2014 17.44
PREPARED O1/02/2015, 9:39:49 A/P CHECKS BY PERIOD AND YEAR PAGE 3
PROGRAM: GM350L
CITY OF FRIDLEY FROM 12/22/2014 TO O1/02/2015 BANK CODE 00
------------------------------------------------------------------------------------------------------------------------------------
CHECK CHECK CHECK
DATE NUMBER VENDOR NAME VENDOR # AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
ACCOUNT # TRN DATE DESCRIPTION INVOICE PO # PER/YEAR TRN AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
602-7000-415.43-32 12/22/2014 PHONE SERVICE 5711683 13/2014 17.44
609-9100-415.43-32 12/22/2014 PHONE SERVICE 5710683 13/2014 214.83
O1/02/2015 166705 CHARLESTON COUNTY FAMILY COURT 3316 451.50
101-0000-219.19-00 O1/02/2015 PAYROLL SUMMARY 20150102 O1/2015 451.50
O1/02/2015 166706 CAPSTONE, LLC 3329 1,290.00
101-0550-425.43-37 12/22/2014 FIRE INSP I 8174,8212, 8228 O1/2015 1,290.00
O1/02/2015 166707 DELL MARKETING LP 4103 7,688.33
409-0000-415.42-21 12/OS/2014 COMPUTERS 526,PX9,RJ9,RW2 13/2014 7,688.33
O1/02/2015 166708 DEFORGES PLUMBING, INC 4147 3,600.00
101-0880-465.43-40 12/23/2014 INSPECTIONS 1488 13/2014 2,000.00
101-0880-465.43-40 12/23/2014 INSPECTIONS 1490 13/2014 1,600.00
O1/02/2015 166709 E.C.M. PUBLISHERS INC 5001 188.30
101-0224-415.43-34 12/24/2014 ORDINANCE AMEND-BUDGET 172049 13/2014 150.64
101-0220-415.43-34 12/24/2014 LEGAL NOTICE-WSTE HAULING 163625 13/2014 37.66
O1/02/2015 166710 EMERGENCY AUTOMOTIVE TECHNOLOG 5073 8,424.15
101-0550-425.42-22 12/17/2014 HEADLIGHT STROBE R1 AW1217141 13/2014 55.30
410-0550-425.45-40 12/24/2015 RESCUE #3 EQUIPMENT 12095 13/2014 8,368.85
00
J /02/2015 166711 FASTENAL COMPANY 6012 3 .12
101-0666-435.42-22 12/12/2014 MISC NUTS/BOLTS MNSPR92092 13/2014 3 .12
O1/02/2015 166712 FEDEX CORP 6068 91.85
101-0440-425.43-40 12/24/2014 SHIPPING-EVIDENCE 288698799 13/2014 91.85
O1/02/2015 166713 TD AMERITRADE 6088 125.00
101-0000-219.15-00 O1/02/2015 PAYROLL SUMMARY 20150102 O1/2015 125.00
O1/02/2015 166714 FRIDLEY FOOD SERVICE 6099 399.56
101-0770-455.42-21 12/17/2014 LIONS DINNER SUPPLIES 20335 13/2014 261.22
101-0770-455.42-21 12/17/2014 COOKIE-KATHY BACKSTROM 20338 13/2014 138.34
O1/02/2015 166715 FRIDLEY POLICE ASSOCIATION 6117 86.00
101-0000-219.22-00 O1/02/2015 PAYROLL SUMMARY 20150102 O1/2015 86.00
O1/02/2015 166716 TERESA FARIS 6142 60.00
227-0000-415.43-40 12/23/2014 CHORES/MORE 13/2014 60.00
O1/02/2015 166717 FLEET PRIDE 6151 271.55
101-0668-435.43-40 12/11/2014 HOSE ASSY 65504399 13/2014 271.55
O1/02/2015 166718 FIRST-SHRED 6157 801.90
237-0000-415.43-40 12/29/2014 FALL RECYCLING EVENT 126494 13/2014 801.80
O1/02/2015 166719 GRAINGER 7041 41.34
601-7000-415.42-22 12/23/2014 MISC CONDUIT HANGERS 9626502943 13/2014 41.34
PREPARED O1/02/2015, 9:39:49 A/P CHECKS BY PERIOD AND YEAR PAGE 4
PROGRAM: GM350L
CITY OF FRIDLEY FROM 12/22/2014 TO O1/02/2015 BANK CODE 00
------------------------------------------------------------------------------------------------------------------------------------
� CHECK CHECK CHECK
DATE NUMBER VENDOR NAME VENDOR # AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
ACCOUNT # TRN DATE DESCRIPTION INVOICE PO # PER/YEAR TRN AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
O1/02/2015 166720 G�RY L FISCHLER & ASSOCIATES, 7068 90.00
101-0550-425.43-30 12'/12/2014 BALANCE-ASSMTS PD SHORT 6164 13/2014 90.00
O1/02/2015 166721 HOME DEPOT/GECF 8052 120.44
101-0550-425.42-22 12/21/2014 HARDWARE SUPPLIES 13/2014 86.47
270-0771-455.43-41 12/21/2014 CARPET CLEANING RENTAL 13/2014 33.97
O1/02/2015 166722 HOISINGTON KOEGLER GROUP INC 8077 1,472.50
101-0891-465.43-30 12/22/2014 PROJ SERV-COL ARENA 014571 13/2014 1,472.50
O1/02/2015 166723 HAWKINS INC 8093 7,348.15
601-7000-415.42-22 12/12/2014 WATER CHEMICALS 3675359 13/2014 3,876.99
601-7000-415.42-22 12/12/2014 WATER CHEMICALS 3678161 13/2014 3,471.16
O1/02/2015 166724 WENDY HIATT 8164 27.14
101-0669-435.43-33 12/31/2014 REIMB MILEAGE 13/2014 27.14
O1/02/2015 166725 INTL ASSOC OF FIRE FZGHTERS - 9074 90.00
101-0000-219.15-00 O1/02/2015 PAYROLL SUMMARY 20150102 O1/2015 90.00
O1/02/2015 166726 RICHARD JONES 10102 70.00
602-7000-415.42-17 12/17/2014 REIMB SAFETY BOOTS 13/2014 70.00
00
pp /02/2015 166727 JO,HN KIRK 11007 670.88
101-0770-455.43-33 12/22/2014 REIMB MILEAGE 13/2014 670.88
O1/02/2015 166728 MA'TTHEW KOHNER 11113 630.00
101-1000-415.43-37 12/24/2014 SCHL REIMB 2014 PHL1010 13/2014 630.00
O1/02/2015 166729 LE'VANDER,GILLEN & MILLER, PA 12013 7, 815.41
101-0222-415.43-30 12/30/2014 DEC ATTY FEES 13/2014 7,815.41
O1/02/2015 166730 L�'W ENFORCEMENT LABOR SERVICES 12022 1,598.00
101-0000-219.13-00 O1'/02/2015 PAYROLL SUMMARY 20150102 O1/2015 1,598.00
O1/02/2015 166731 LOFFLER COMPANIES, INC 12143 1,580.00
409-0000-415.45-60 12/OS/2014 PRINTER 1880069 13/2014 1,580.00
O1/02/2015 166732 ME'TROPOLITAN COUNCIL 13020 306,214.33
602-7000-415.43-38 12/OS/2014 JAN WASTEWATER 1039189 O1/2015 306,214.33
O1/02/2015 166733 MARINO'S RESTAURANT 13063 136.57
101-0440-425.42-21 12'/18/2014 VOL APPRECIATION EVENT 13/2014 136.57
O1/02/2015 166734 MINN POLLUTION CONTROL AGENCY- 13071 23 .00
602-7000-415.43-37 12/20/2014 WASTEWTR CERT-BULMAN 13/2014 23 .00
O1/02/2015 166735 MRPA/MASS 13093 25.00
101-0770-455.43-31 12;/16/2014 MEMBERSHIP-THOMPSON O1/2015 25. 00
PREPARED O1/02/2015, 9:39:49 A/P CHECKS BY PERIOD AND YEAR PAGE 5
PROGRAM: GM350L
CITY OF FRIDLEY FROM 12/22/2014 TO O1/02/2015 BANK CODE 00
------------------------------------------------------------------------------------------------------------------------------------
CAECK CHECK CHECK
DATE NUMBER VENDOR NAME VENDOR # AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
ACCOUNT # TRN DATE DESCRIPTION INVOICE PO # PER/YEAR TRN AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
O1/02/2015 166736 MRPA/MASS 13093 853.00
101-0770-455.43-31 12/10/2014 MEMBERSHIP RENEWALS O1/2015 853.00
O1/02/2015 166737 MINN DEPT OF PUBLIC SAFETY-B.0 13111 645.00
101-0440-425.43-37 11/06/2014 DMT OPER RECERTIFICATIONS 13/2014 600.00
101-0440-425.43-31 12/22/2014 MEMBERSHIP Ol/2015 45.00
O1/02/2015 166738 MINNESOTA/WISCONSIN PLAYGROUND 13196 332.00
101-0666-435.42-25 12/13/2014 S-HOOK PLIERS 2014459 13/2014 332 .00
O1/02/2015 166739 MINN DEPT OF AGRICULTURE 13207 90.00
101-0666-435.43-37 12/11/2014 PESTICIDE APP LICENSE 13/2014 90.00
O1/02/2015 166740 MINNESOTA SENEFIT ASSOC - M.B. 13220 45.84
101-0000-219.09-00 O1/02/2015 PAYROLL SUMMARY 20150102 O1/2015 45.84
O1/02/2015 166741 MICHAEL MAHER 13240 179.20
270-0771-455.43-33 12/16/2014 REIMB MILEAGE 13/2014 179.20
O1/02/2015 166742 MENARDS - FRIDLEY 13256 19.73
601-7000-415.42-22 12/23/2014 PVC,HOLE STRAP 85171 13/2014 1.75
101-0669-435.42-22 12/23/2014 BATTERIES 65171 13/2014 17.98
� /02/2015 166743 MINN BUILDING PERMIT TECH ASSO 13288 100.00
101-0880-465.43-31 12/19/2014 MEMBERSHIP-BUBERL O1/2015 100.00
O1/02/2015 166744 MINNEAPOLIS SAW INC 13290 699.76
101-0666-435.42-25 12/29/2014 CHAINSAW,CHAINS 43453 13/2014 699.76
O1/02/2015 166745 MINN CHILD SUPPORT PAYMENT CEN 13307 304.11
101-0000-219.19-00 O1/02/2015 PAYROLL SUMMARY 20150102 O1/2015 304.11
O1/02/2015 166746 MENARDS - BLAINE 13384 41.89
101-0440-425.42-22 12/23/2014 OAK BOARDS POLICE CASINET 68924 13/2014 41.89
O1/02/2015 166747 MINNESOTA METRO NORTH TOURISM 13416 3,691.87
806-0000-204.00-00 12/19/2014 NOV HOTEL/MOTEL TAX O1/2015 3,691.87
O1/02/2015 166748 MANSFIELD OIL COMPANY 13472 5,982.22
101-0000-141.00-00 12/21/2014 FUEL 134474 13/2014 5,982.22
O1/02/2015 166749 MITY LITE, INC 13484 6,633.90
405-0005-415.42-21 12/17/2014 TABLES FOR FFC 562187 13/2014 6,633.90
O1/02/2015 166750 NEWQUIST & HERRICK LAW OFFICES 14002 26,802 .44
101-0222-415.43-30 12/29/2014 JAN RETAINER O1/2015 26, 802.44
O1/02/2015 166751 NORTHWEST ASPHALT, INC 14077 12,308.49
573-0000-435.45-30 11/30/2014 2013 STREET REHAB PROJ EST#6 13/2014 12,308.49
PREPARED O1/02/2015, 9:39:49 A/P CHECKS BY PERIOD AND YEAR PAGE 6
PROGRAM: GM350L
CITY OF FRIDLEY FROM 12/22/2014 TO O1/02/2015 BANK CODE 00
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CHECK CHECK CHECK
DATE NUMBER VENDOR NAME VENDOR # AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
ACCOUNT # TRN DATE DESCRIPTION INVOICE PO # PER/YEAR TRN AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
O1/02/2015 166752 NORTHERN SANITARY SUPPLY INC 14089 159.00
101-0669-435.42-22 12/18/2014 AUTO TOILET FLUSHER 172292 13/2014 159.00
O1/02/2015 166753 OPEN YOUR HEART 15011 15.00
101-0000-219.08-00 O1/02/2015 PAYROLL SUMMARY 20150102 O1/2015 15.00
O1/02/2015 166754 PIONEER RIM & WAEEL COMPANY 16070 261.80
101-0000-144.00-00 12/11/2014 WINDOW TREATMENT 1272539 13/2014 261.80
O1/02/2015 166755 PRO-TEC DESIGN 16154 833.08
101-0660-415.43-40 12/29/2014 MOVE AMAG TO NEW SERVER 69170 13/2014 593 .08
101-0669-435.43-40 12/29/2014 MONITORING 69250 13/2014 240.00
O1/02/2015 166756 PIONEER RESEARCH 16222 137.25
101-0668-435.42-22 11/24/2014 LBS BLUE FIRE-DEICER 13/2014 137.25
O1/02/2015 166757 ROSEDALE CHEVROLET 18036 1,247.63
101-0000-144.00-00 12/10/2014 BUMPER,PARTS 938533 13/2014 1,247.63
O1/02/2015 166758 SAM'S CLUB 19004 1,236.18
101-0770-455.42-21 12/17/2014 ZONE SUPPLIES 13/2014 631.88
101-0770-455.42-21 12/17/2014 SR COFFEE 13/2014 72.39
� 227-0000-415.43-32 12/17/2014 STAMPS 13/2014 146.25
p 270-0771-455.42-21 12/17/2014 BREAKFAST W/SANTA FOOD 13/2014 161.76
101-0661-435.42-21 12/17/2014 CAKE-LAYNE'S RECEPTION 13/2014 28.32
101-0550-425.42-21 12/17/2014 FIRE-BOTTLED WATER 13/2014 31.84
101-1000-415.42-21 12/17/2014 ANNUAL MTG SUPPLIES 13/2014 163.74
O1/02/2015 166759 MARY M SMITH 19095 134.40
101-0332-415.43-33 11/24/2014 REIMB MILEAGE 2014 13/2014 134.40
O1/02/2015 166760 SWANSON FLO-SYSTEMS CO 19105 223 .40
601-7000-415.43-40 12/23/2014 VALVE WORK COMMONS WTP 1139809 13/2014 223 .40
O1/02/2015 166761 ST PAUL, CITY OF - POLICE DEPT 19130 139.00
101-0440-425.43-37 11/08/2014 REGISTRATION-KAUFER 11/8 13/2014 139.00
O1/02/2015 166762 STRAND, BRIAN 19189 34 .55
225-0000-415.43-33 12/15/2014 REIMB MILEAGE 13/2014 34.55
O1/02/2015 166763 SUNRAM CONSTRUCTION, INC 19209 6,636_44
603-7500-415.45-30 12/OS/2014 SPRGBRK WEIR PROJ EST#6 FINAL 13/2014 6, 636.44
O1/02/2015 166764 S & S TREE SPECZALISTS 19245 4,392 .13
101-0666-435.43-40 12/04/2014 TREE REMOVALS 908513514 13/2014 2,517.44
101-0666-435.43-40 12/19/2014 TREE REMOVALS 908547871 13/2014 1, 874.69
O1/02/2015 166765 SYSCO MINNESOTA 19349 241. 95
270-0771-455.42-21 12/15/2014 NEW YEARS/SANTA FOOD 412159024 13/2014 241.95
PREPARED O1/02/2015, 9:39:49 A/P CHECKS BY PERIOD AND YEAR PAGE 7
PROGRAM: GM350L
CITY OF FRIDLEY FROM 12/22/2014 TO O1/02/2015 BANK CODE 00
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CHECK CHECK CHECK
DATE NUMBER VENDOR NAME VENDOR # AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
ACCOUNT # TRN DATE DESCRIPTION INVOICE PO # PER/YEAR TRN AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
O1/02/2015 166766 ADAM SWINNEY 19385 70.00
601-7000-415.42-17 12/24/2014 REIMB SAFETY BOOTS 13/2014 70.00
O1/02/2015 166767 TARGET 20004 27.13
101-0220-415.42-21 12/18/2014 COFFEE,SUPPLIES 13/2014 27.13
O1/02/2015 166768 TOWN & COUNTRY FENCE INC 20091 2,975.00
101-0666-435.43-40 12/12/2014 FURNISH/INSTALL FENCE 3041334 13/2014 2, 975.00
O1/02/2015 166769 ZCOFTL FRIDLEY,LLC 20130 16,043.36
609-9100-415.43-41 O1/O1/2014 JAN LEASE PAYMENT 30470001A000367 O1/2015 16,043.36
O1/02/2015 166770 TWIN CITY HARDWARE 20153 150.00
101-0669-435.43-40 12/18/2014 REPAIR DOOR 691130 13/2014 150.00
O1/02/2015 166771 MARY THELL 20171 37.97
101-0440-425.42-21 12/18/2014 REIMB VOL APPR SUPPLIES 13/2014 37.97
O1/02/2015 166772 TRUEMAN-WELTERS,INC 20184 7,971.00
101-0666-435.42-22 12/30/2014 SPREADER W/BOX 13774 13/2014 2,745.00
101-0666-435.42-22 12/30/2014 LOADER ATTACHMENT 13775 13/2014 3, 826.00
101-0666-435.42-22 12/17/2014 SNOW BUCKET V#596 EB13745 13/2014 1,400.00
r /02/2015 166773 UNIQUE PAVING MATERIALS 21001 878.80
601-7500-415.42-22 12/09/2014 COLD MIX FOR WTR BREAKS 241555 13/2014 878 .80
O1/02/2015 166774 UNITED WAY 21035 20.00
101-0000-219.08-00 O1/02/2015 PAYROLL SUMMARY 20150102 O1/2015 20.00
O1/02/2015 166775 UPPER MIDWEST SEED INC 21046 51.00
270-0771-455.42-21 12/15/2014 BIRD SEED 19056 13/2014 51.00
O1/02/2015 166776 UNITED RENTALS INC 21050 7,599.00
601-7000-415.42-22 12/17/2014 TRENCHBOX 125066316001 13/2014 7,599.00
O1/02/2015 166777 U.S.A. BLUEBOOK 21051 455 .82
601-7000-415.42-22 12/09/2014 PVC TEFLON KOPKITS 517427,517941 13/2014 455.82
O1/02/2015 166778 U.S. DEPARTMENT OF EDUCATION 21066 218.17
101-0000-219.20-00 O1/02/2015 PAYROLL SUMMARY 20150102 O1/2015 218.17
O1/02/2015 166779 W.S.B. & ASSOCIATES INC 23012 3, 874.25
603-7000-415.43-30 12/29/2014 MWMO GRANT VILLAGE GREEN 3 13/2014 169.50
406-0006-435.43-30 12/29/2014 PROF SERV TAP GRANT 1 13/2014 3,704 .75
O1/02/2015 166780 WATER CONSERVATION SERVICE, IN 23059 633.60
601-7000-415.43-40 12/11/2014 LEAK LOCATE 5579 13/2014 633.60
O1/02/2015 166781 XCEL ENERGY 24002 20, 964 .11
603-7000-415.43-38 12/18/2014 UTILITIES 439005807 13/2014 104 .08
PREPARED O1/02/2015, 9:39:49 A/P CHECKS BY PERIOD AND YEAR PAGE 8
PROGRAM: GM350L
CITY OF FRIDLEY FROM 12/22/2014 TO O1/02/2015 BANK CODE 00
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CHECK CHECK CHECK
DATE NUMBER VENDOR NAME VENDOR # AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
ACCOUNT # TRN DATE DESCRIPTION INVOICE PO # PER/YEAR TRN AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
270-0771-455.43-38 12/18/2014 UTILITIES 438822012 13/2014 507.53
101-0441-425.43-38 12/18/2014 UTILITIES 438831072 13/2014 53 .57
101-0669-435_43-38 12/17/2014 UTILITIES 438822431 13/2014 18.36
101-0669-435.43-38 12/17/2014 UTILITIES 439021317 13/2014 1, 604.35
602-7000-415.43-39 12/17/2014 UTILITIES 139017737 13/2014 1,472 .88
101-0550-425.43-38 12/17/2014 UTILITIES 438999236 13/2014 255.91
101-0665-435.43-38 12/17/2014 UTILITIES 439036990 13/2014 16,920.06
101-0666-435.43-38 12/26/2014 UTILITIES 439686292 13/2014 27.37
O1/02/2015 166782 BOYLES, ERIC & DOMINIKA 99999 52 .14
601-0000-245.00-00 O1/O1/2015 UB CR REFUND-FINALS 000163155 O1/2015 52.14
O1/02/2015 166783 COMPAER, KRYSTAL 99999 30.29
601-0000-245.00-00 O1/O1/2015 UB CR REFUND-FINALS 000171855 O1/2015 30.29
O1/02/2015 166784 BAUER, DEBRA 99999 g.42
601-0000-245.00-00 O1/O1/2015 UB CR REFUND-FINALS 000157235 O1/2015 9.42
O1/02/2015 166785 PHILLIPS, JON 99999 13 .93
601-0000-245.00-00 O1/O1/2015 UB CR REFUND-FINALS 000030195 O1/2015 13 .93
O1/02/2015 166786 CREAGER, KATHLEEN 99999 193.24
601-0000-245.00-00 O1/O1/2015 UB CR REFUND-FINALS 000160105 O1/2015 193.24
N /02/2015 166787 JOHNSON, MRS JACQUELINE 99999 504.78
601-0000-245.00-00 O1/O1/2015 UB CR REFUND-FINALS 000050395 O1/2015 504.78
O1/02/2015 166788 MADISON, SUSAN & ALBERT 99999 78.96
601-0000-245.00-00 O1/O1/2015 UB CR REFUND-FINALS 000122365 O1/2015 78.96
O1/02/2015 166789 JACKELS, JON 99999 12 .84
601-0000-245.00-00 O1/O1/2015 UB CR REFUND-FINALS 000059475 O1/2015 12 .84
O1/02/2015 166790 STARK, JOANNE 99999 42.29
601-0000-245.00-00 O1/O1/2015 UB CR REFUND-FINALS 000073835 O1/2015 42.29
O1/02/2015 166791 BRENDEMUEHL,A ANDERSON & L 99999 13 .97
601-0000-245.00-00 O1/O1/2015 UB CR REFUND-FINALS 000162975 O1/2015 13.97
O1/02/2015 166792 CORBIN EXTERIORS 2014176 33.00
101-0000-322.10-41 12/19/2014 REFUND BULDING PERMIT 13/2014 33 .00
O1/02/2015 166793 J & J MECHANICAL 2014356 35.00
101-0000-322.30-41 12/19/2014 REFUND BULDING PERMIT 13/2014 35.00
O1/02/2015 166794 SCOTT FREER ELECTRIC 2014618 35.00
101-0000-322.20-41 12/19/2014 REFUND BULDING PERMIT 13/2014 35.00
O1/02/2015 166795 SUPERIOR ELECTRIC 2014619 35.00
101-0000-322.20-41 12/19/2014 REFUND BULDING PERMIT 13/2014 35.00
PREPARED O1/02/2015, 9:39:49 A/P CHECKS BY PERIOD AND YEAR PAGE 9
PROGRAM: GM350L
CITY OF FRIDLEY FROM 12/22/2014 TO O1/02/2015 BANK CODE 00
------------------------------------------------------------------------------------------------------------------------------------
CHECK CHECK CHECK
DATE NUMBER VENDOR NAME VENDOR # AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
ACCOUNT # TRN DATE DESCRIPTION INVOICE PO # PER/YEAR TRN AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
DATE RANGE TOTAL * 521,450.45 *
�O
W
;,� C1TY COUNCIL MEETING OF
� r�ai�y JANUARY 5, 2015
BUSINESS LICENSE LIST
Food License Maxwell Street City Clerk
7429 E River Road Public Safety Director
Azal Hassim,Applicant Fire Marshall
94
= AGENDA ITEM
Fridley CITY COUNCIL MEETING OF JAN 5, 2015
LICENSES
To: Walter T. Wysopal, City Manager
Mayor and City Council
From: Scott Hickok, Community Development Director
Deb Biorn,Rental Property Inspections
Date: December 31,2014
Re: Annual Renewal of Licenses
AGENDA ITEM
CITY COUNCIL MEETING
Attached is a list of 14 properties that have submitted a rental license application, paid all fees
related to license renewal, and completed the rental inspections process.
The Rental Property Inspections Division of Community Development recommends that the City
Council approves the issuance of the rental licenses for these properties.
95
Ready for Certificate
The properties listed below meet the rental property guidelines according to Chapter 220 of the Fridley City Code
Property Id Property Address Units Owner
1124 6551 2nd St. NE 6 Family of Omar R. Neison
1136 5057 3rd St. NE 2 Espeseth Farms Inc.
1193 5400 5th St. NE 4 Todd Ellestad
1197 5430-32 5th St. NE 2 Salvation Army Harbor Light Ctr
1217 110 61st Ave. NE 8 Herman& Marlene Rice Family Limited
1305 7447-49 Able St. NE 2 Robbi Olson
1601 5530 Regis Drive NE 1 Abdurahman M. Adan
1737 1150 Norton Ave. NE 1 Hong Wang &Wen Ouyang
1928 6540 Lucia Ln. NE 1 Brian Kirkman
2044 1545 73rd Ave. NE 1 Executive Realty/Phil Beaumia
2061 1601 N Innsbruck Dr. (226) 1 Jonathan &Cynthia Soule
2285 580 Kimball St. N� 1 MNSF Minneapolis LLC
2287 6434 Taylor St. NE 1 Jared &Jacqueline Lalonde
2290 7539 Lyric Ln. NE 1 Jim Milich
Total Certificates: 14
96
� AGENDA ITEM
Fridley CITY COUNCIL MEETING OF JANUARY 5, 2015
ESTIMATES
Sunram Construction, Inc.
20010—75�'Avenue I�orth
Corcoran,MN 55340
Springbrook Weirs Project No. 410
Estimate No. 6—FINAL ESTIMATE ................................................ $ 6,636.44
Northwest Asphalt, Inc.
1451 Stagecoach Road
Shakopee, MN 55379
2013 Street Rehabilitation Project No. ST2013-01
Estimate No. 6—FINAL ESTIMATE ............................................... $ 12,308.49
97
� AGENDA ITEM
-Fridley CITY COUNCIL MEETING OF JANUARY 5, 2015
To: Mayor and City Council
From: Walter T. Wysopal, City Manag��°��/
Date: December 31, 2014
Re: Public Hearing for Considering Cable Franchise Transfer
Introduction
The Fridley City Council must approve the transfer of a cable franchise from one company to
another. City Code Chapter 405A requires a public hearing prior to the consideration of approving
the transfer. This public hearing was published in the Sun Focus (official newspaper) on December
26, 2014. The purpose of the hearing is to hear evidence regarding the transfer and consider
implications to customer service and operational sufficiency. No action on the transfer is proposed
at this Council meeting.
Background and Analvsis
Comcast's proposed acquisition of Time Warner Company will (if approved)result in the total
combined number of cable subscribers to be controlled by Comcast to exceed 30 million
nationwide. In an effort to reduce that number and make the Transaction more acceptable to federal
regulators, Comcast voluntarily agreed to divest itself of 3.9 million cable subscribers nationwide.
Part of this proposed divestiture was accomplished with the system swaps between Comcast and
Charter that results in Charter acquiring an additional 1.4 million cable subscribers. The remaining
2.5 cable subscribers to be divested by Comcast will be controlled by a new publicly traded entity,
Midwest Cable.
What this means is that Comcast will be leaving Minnesota and will no longer own the cable
systems serving the Twin Cities or the City. Rather,the System will be owned by Midwest Cable.
Because Midwest Cable is newly created, it will require third party.assistance to address many
operating issues such as programming agreements, customer service, billing,technical support and
related issues. Charter will be assisting Midwest Cable with many of these issues via a"services
agreement."Attached is a report prepared by the City's outside legal counsel which gets into the
details of the transaction impacts.
Recommendation
It is recommended the City Council conduct a public hearing to gather comments in regard to the
proposed cable franchise transfer from Comcast to Midwest Cable.
98
♦�`�►�'�► Moss & B�rnett
REPORT
Regarding the Proposed Transfer of Control of the Cable
Franchise and Cable System from Comcast to Midwest Cable
(GreatLand Connections Inc.)
December 22, 2014
Submitted by:
Brian T. Grogan, Esq.
Yuri B. Berndt, Esq.
150 South Fifth Street, Suite 1200
Minneapolis, MN 55402
(P) 612-877-5000
(F) 612-877-5999
www.lawmoss.com
99
INTRODUCTION
This report has been provided by Moss & Barnett, a Professional Association, for the purpose of
evaluating a request from Comcast of Arkansas/Florida/Louisiana/Minnesota/Mississippi/
Tennessee, Inc. ("Grantee"), the current holder of the Cable Franchise ("Franchise") in the City ,
of Fridley, Minnesota ("City"), to approve a proposed transfer of control ("Transfer") of the
Franchise to Midwest Cable, Inc. (hereinafter"Midwest Cable" or"Midwest"). The Grantee
currently owns, operates and maintains a cable television system ("System") in the City
pursuant to the terms of the Franchise.
On February 12, 2014, Comcast Corporation ("Comcast") and Time Warner Cable Inc. ("TWC")
entered into an Agreement and Plan of Merger whereby Comcast would acquire the cable
systems and franchises held by TWC among other assets. On April 25, 2014, Comcast and
Charter Communications, Inc. ("Charter") entered into the Comcast/Charter Transactions
Agreement (the "Agreement"), pursuant to which the Grantee, through a restructuring under
Comcast's ownership, will become Comcast of Minnesota, LLC ("New Grantee") and
immediately thereafter will become a wholly-owned subsidiary of Midwest Cable (the
"Transaction").
Note: See pages 3, 4 and 5 of this Report for diagrams of the Transaction.'
What is hapqenin�t to the Twin Cities Comcast cable svstems?
Comcast's proposed acquisition of NVC will (if approved) result in the total combined number of
cable subscribers to be controlled by Comcast to exceed 30 million nationwide. In an effort to
reduce that number and make the Transaction more acceptable to federal regulators, Comcast
voluntarily agreed to divest itself of 3.9 million cable subscribers nationwide. Part of this
proposed divestiture was accomplished with the system swaps between Comcast and Charter
that results in Charter acquiring an additional 1.4 million cable subscribers. The remaining 2.5
cable subscribers to be divested by Comcast will be controlled by a new publicly traded entity,
Midwest Cable. In Minnesota, Comcast's only cable subscribers exist in the Twin Cities market
(and small portions of western Wisconsin). As a result, the Twin Cities market was selected,
along with other markets in Michigan, Illinois, Indiana and some southern states, to be included
in the divestiture transaction.
What this means is that Comcast will be leaving Minnesota and will no longer own the cable
systems serving the Twin Cities or the City. Rather, the System will be owned by Midwest
Cable. Because Midwest Cable is newly created, it will require third party assistance to address
many operating issues such as programming agreements, customer service, billing, technical
support and related issues. Charter will be assisting Midwest Cable with many of these issues
via a "services agreemenY' that will be more fully explained in this Report.
What will be the name of the new cable operator servin� the City?
In initial communications with the City, Comcast referred to the proposed new cable operator
entity as SpinCo. Shortly thereafter the name was changed to Midwest Cable. Midwest Cable
remains the name as of the date of this Report, but following close of the Transaction, the name
� All diagrams are derived from Midwest Cable Form S-1 filed with the Securities and Exchange Commission on
October 31,2014.
1
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100
will change to GreatLand Connections Inc. ("GreatLand"). For purposes of this report all
references will be to Midwest Cable.
The Transaction initially provides for Comcast's creation of Midwest Cable and Comcast's '
contribution of systems (and related business assets and holdings) serving approximately 2.5
million existing Comcast subscribers to Midwest Cable. Midwest Cable is currently a wholly
owned subsidiary of Comcast. Following the contribution, Comcast will spin-off the Midwest
Cable stock to its public shareholders and Midwest Cable will become an independent, publicly
traded corporation and its name will change to GreatLand. Approximately finro-thirds (2/3) of the
equity and voting shares of Midwest Cable will be held by Comcast shareholders and one-third
of the equity and voting shares will be owned by Charter. See page 5 of this Report for a
diagram of the transaction.
Timin� for Action bv the Citv
On or about June 17, 2014 the City received from Grantee, FCC Form 394-Application for
Franchise Authority Consent to Assignment or Transfer of Control of Cable Television Franchise
("Application"). Federal, state and local law, including the terms of the Franchise, provide the
City with authority to consider the Application. The time period for such a review is typically one
hundred twenty (120) days from the date of receipt of the Application, in this case on or before
October 15, 2014. On or about August 22, 2014 Comcast and Midwest Cable agreed to extend
the Application review period for sixty (60) days until December 15, 2014 to allow the City time
to review additional information concerning the qualifications of Midwest Cable which was
provided to the City on September 30, 2014.
On or about September 30, 2014 Comcast and Midwest Cable agreed to a further extension of
the Application review period for thirty (30) days until January 15, 2015 to allow the City to
review certain service agreements related to the Transaction as well as certain SEC financial
filings to be made available for review on October 31, 2014. The current deadline for action
on the Application is January 15, 2015.
What can the Citv consider?
Pursuant to the City's Franchise, this proposed Transfer is prohibited without the written consent
of the City. Federal, state and local law provides the City with a right to examine the Ieqa1,
technical and financial aualifications of the proposed New Grantee and Midwest Cable.
Following review of the Application additional questions were sent on the City's behalf to
Comcast seeking supplemental information regarding the qualifications of New Grantee and
Midwest Cable. The Transaction is complicated to describe because certain operational
responsibilities will be contracted for by Midwest Cable. Both Comcast and Charter will provide
certain transition services and ongoing services to Midwest Cable which will be more fully
described herein.
2
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101
Structure Following the Comcast/TWC Merger
but Before the Transactions
3
2626024v1
1�2
Structure Following the Spin-Off and the Charter Reorganization
but Before the Midwest Cable Merger
I
a
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103
Structure Following the Transactions
Approximately %
Approximately %
Approximately 67%
Approximately 33%
5
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104
APPLICABLE LAW
In addition to the Franchise requirements which are not specially set forth herein, the following
provisions of Federal taw and State law govern the actions of the City in acting on the request
for approval of the Transaction.
Federal Law
The Cable Communications Policy Act of 1984, as amended by the Cable Consumer
Protection and Competition Act of 1992 and the Telecommunications Act of 1996 ("Cable
Act"), provides at Section 617 (47 U.S.C. § 537):
Sa/es of Cable Systems. A franchising authority shall, if the franchise requires
franchising authority approval of a sale or transfer, have 120 days to act upon
any requesf for approval of such sa/e or transfer that contains or is accompanied
by such information as is required in accordance with Commission regulations
and by the franchising authority. If the franchising authority fails to render a final
decision on the request within 120 days, such request shall be deemed granted
unless the requesting party and the franchising authority agree to an extension of '
time.
The Cable Act also provides at Section 613(d) (47 U.S.C. § 533(d)) as follows:
(d) Requlation of ownership bv States or franchisina authorities. Any State or
franchising authority may not prohibit the ownership or control of a cable system
by any person because of such person's ownership or control of any other media
of mass communications or other media interests. Nothing in this section shall
be construed to prevent any State or franchising authority from prohibiting the
ownership or control of a cab/e system in a jurisdiction by any person (1)
because of such person's ownership or control of any other cable system in such
jurisdiction, or(2) in circumstances in which the State or franchising authority
determines that the acquisition of such a cable system may eliminate or reduce
competition in the delivery of cab/e service in such jurisdiction.
Further, the Federal Communications Commission ("FCC") has promulgated regulations
governing the sale of cable systems. Section 76.502 of the FCC's regulations (47 C.F.R. §
76.502) provides:
Time Limits Applicab/e to Franchise Authoritv Consideration of Transfer
Applications.
(a) A franchise authority shall have 120 days from the date of submission of a
completed FCC Form 394, together with all exhibits, and any additional
information required by the terms of the franchise agreement or applicable state
or local law to act upon an application to sell, assign, or otherwise transfer
controlling ownership of a cab/e system.
(b) A franchise authority that questions the accuracy of the information provided
under paragraph (a) must notify the cab/e operator within 30 days of the filing of
s
zszso2a��
105
such information, or such information shall be deemed accepted, unless fhe
cable operator has failed to provide any additional information reasonably
requested by the franchise authority within 10 days of such request.
(c) If the franchise authority fails to act upon such transfer request within 120 days,
such request shall be deemed granted unless the franchise authority and the
requesting party otherwise agree to an extension of time.
State Law
Minnesota Statutes Section 238.083 provides:
Sa/e or Transfer of Franchise.
Subd. 1. Fundamental corporate change defined. For purposes of this
section, "fundamental corporate change"means the sa/e or transfer of a majority
of a corporation's assets; merger, including a parent and its subsidiary
corporation; consolidation; or creation of a subsidiary corporation.
Subd. 2. Written approval of franchising authority. A sa/e or transfer of a
franchise, including a sale or transfer by means of a fundamental corporate
change, requires the written approval of the franchising authority. The parties to
the sa/e or transfer of a franchise shall make a written request to the franchising
authority for its approval of the sa/e or transfer.
Subd. 3. Repealed, 2004 c 261 art 7 s 29 I
Subd. 4. Approval or denial of transfer request. The franchising authority
shall approve or deny in writing the sa/e or transfer request. The approval must
not be unreasonably withheld.
Subd. 5. Repea/ed, 2004 c 261 art 7 s 29
Subd. 6. Transfer of sfock; controlling interest deflined. Sale or transfer of
stock in a corporation so as to create a new controlling interest in a cable
communication system is subject to the requirements of this section.
The term "controlling interest"as used herein is not limited to majority stock
ownership, but includes actual working control in whatever manner exercised.
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TECHNICAL REVIEW
The technical qualification standard relates to the technicat expertise and experience of New
Grantee and Midwest Cable to own, operate and maintain the System in the City following the
closing of the Transaction. In this case, since Midwest Cable will become the ultimate parent of
New Grantee, our focus is on the technical qualifications of Midwest Cabte. In such a review,
the standard of review is that the City's consent shall not be "unreasonably withheld." Because
Charter will be providing considerable support to Midwest Cable, we have also outlined below
certain qualifications of Charter and have attempted to clarify which entity will provide services
in the City.
Back�round Qualifications of Midwest Cable
Midwest Cable is a newly created entity. Midwest Cable has no operating history that the City
can review nor does it have any existing franchises under its control. Midwest Cable will initially
have nine board members. Midwest Cable's Executive Management Team will include the
following cable and communications industry executives: 1) Michael Willner, President and
CEO; 2) Leonard Ba�cter, Vice President, Chief Administrator Officer; 3) Matt Siegel, Executive
Vice President and Chief Financial Officer; and 4) Keith Hall, Executive Vice President,
Corporate Affairs. Mr. Willner, a forty year cable veteran, is the former President and CEO of
Insight Communications. Many members of the Midwest Cable executive team are former
Insight Communications executives that worked under Mr. Willner. Midwest Cable will employ
regional managers and for certain cable systems, local area managers, who will responsible for
overseeing the local cable system operations of Midwest Cable.
Responses to Supplemental Information
Comcast and Midwest Cable provided an identical letter dated September 30, 2014 to all Twin
City area jurisdictions (through legal counsels for each of the jurisdictions) rather providing a
response to each of the specific questions raised by the City. Below is a summary of the
information provided in the Comcast/Midwest Cable correspondence dated September 30,
2014.
1. Will Midwest Cable have local Twin City employees?
All local system field operational (technical) personnel will be Midwest Cable employees.
All government affairs personnel interacting with local franchising authorities will also be
Midwest Cable employees. Other operational senrices will be provided by Charter
personnel as described below.
2. What transition services will Comcast provide?
During the first year following the close of the Transaction, Comcast will provide the
following "transition services" to Midwest Cable. Some of these services will transition to
Midwest Cable more quickly than others.
a. Facilities and Asset-Based: Network operating center ("NOC") for fiber and
outage monitoring; national-route fiber leases; Internet Protocol N ("IPT1/")
infrastructure and support; call centers and specialized customer care activities
(e.g., home security monitoring).
8
2626024v1
1�7
b. Software Platforms: Billing systems; customer websites and service portals;
provisioning and telephony platforms; customer premise equipment support
systems; voicemail and email platForms; network support tools; data warehouse;
human resources and accounting systems.
c. Marketinp and Sales: Transition from ComcasUXfinity branding to the Midwest
Cable and Charter co-branded "Spectrum" product offering — including all of the
associated market and employee-facing markings, as well as national sales
channels for residential, commercial and advertising sales.
d. Customer-Facing Transition Services: Call center support; billing systems
support; provisioning of video; voice and data services; voice operations/call
completion; X1 platform support; customer identity management; and
email/voicemail continuity support.
3. What services will Charter provide in the Twin Cities?
For an initial three (3) year term (with optional one year extensions) Midwest Cable will
contract with Charter to provide certain marketing and operational services. Midwest
Cable will pay Charter a fee of 4.25 percent of Midwest Cable's total revenues (voice,
video and data revenues) in return for these services.
Charter backaround - Charter currently operates cable systems throughout Minnesota in
such cities as Duluth, St. Cloud, Marshall, Apple Valley, Lakeville, Rochester, Mankato,
Winona and many others. Charter provides service to more than 6.1 million customers
in 29 states in which it currently operates. Charter is a Fortune 500 company and
employs approximately 23,000 people.
a. Procurement and Proaramming Mana�ement Services. Charter will provide
programming management services to Midwest Cable including negotiating and
entering into video programming agreements.
Charter will provide procurement management services to Midwest Cable.
Examples of such goods and services are: product hardware, software licensing
and employee cellular service.
b. Network Oqerations. Charter will provide Midwest Cable: (i)telecommunications
services that previously depended on Comcast in a shared service model
including: network connectivity for all services including voice, video and data,
Video On Demand, CPE software and provisioning management, network
security and interface with law enforcement, authentication of services and
network monitoring and outage detection.
c. Engineerina & IT. Charter will provide Midwest Cable the Corporate Engineering
services previously provided by Comcast including: architectural design
standards, product technical roadmaps and standards and technical roadmaps
and standards.
Charter will provide Midwest Cable IT services including: (i) software for back
office functions including managing customer transactions and provisioning of
services; (ii) management information services for accounting, billing, activity
9
2626024v1
10g
analysis, labor management, budgeting and financial analysis; and (iii)
management of data centers.
d. Voice Operations. Charter will provide origination services to Midwest Cable
including processing phone subscriber orders for phone installations at the
subscriber's home or business. These services include: order fulfillment and
provisioning and local number management and portability.
e. Field Operations. Charter will support Midwest Cable under by providing field
operations services including: dispatch, plant database software systems,
predictive network failure software and maintenance prioritization, technician
activity and productivity reporting, warehouse standards and CPE handling
standards, tools, requirements and standards for technician communications,
plant design and construction standards and fleet management.
f. Customer Senrice. Charter will support Midwest Cable by providing customer
care senrices directly or through its vendors. These services include call center
services for call answering, monitoring and dispositioning related to inbound
sales, billing, repair, and retention for all products and services sold by Midwest
Cable, including video, voice and data, online chat for sales, service and billing,
online customer care portals for self-help and service and customer identity
management.
g. Billina 8� Collections. Charter will provide billing and collections services. These
services include: customer billing and billing system management, collection of
customer receivables and cash management and customer disconnect support.
h. Product. Charter will provide Midwest Cable with: (i) customer facing product
development definitions/standards/software and planning for all business and
consumer products; (ii) change planning and project management services; and
(iii) website hosting, video content management and web mail hosting. Any
customer facing products bearing a Charter brand name shall be co-branded with
Midwest Cable's brand name in such a manner that it is clea�to the consumer of
such products that Midwest Cable is the party providing services to the
consumer.
i. Marketina & Sales. Charter will support Midwest Cable by providing: (i)
marketing services and database support to enable mass, direct and online
marketing activities; (ii) analysis of sales channel(s) performance; and (iii)
development and all customer and non-customer facing messaging.
Charter will support Midwest Cable by providing: (i) program design and
management tools that maximize economic sales to nonsubscribers by door-to-
door sales representatives; (ii) sales channel reporting; and (iii) program design
for maximizing growth in MDU environment.
j. Administrative and Back office Services. As requested by Midwest Cable,
Midwest Cable may leverage administrative services from Charter, including
leveraging the associated platforms and practices, in areas including but not
limited to accounts payable, general ledger, database systems, and payroll
administration.
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109
4. Will Xfinity cable services remain available?
Cable services will eventually be transitioned from Xfinity branding to Charter's
"Spectrum" brand. Midwest Cable customer invoices will identify products and services
as being "Spectrum by Midwest Cable.s2 The products and services may also be co-
branded as "Midwest Cable and Charter," in certain markets.
5. Customer E-Mail Transition.
Post-closing, customers will continue to use their Comcast email account until they
migrate to a Midwest Cable emai� account. Comcast customers will not indefinitely
retain their existing "@comcast.net" email address after migrating to the Midwest Cable
service, as Comcast owns that domain. However, emails sent to the customer's former I
"@comcast.net" email address will be automatically forwarded to the customer's new
Midwest Cable email address for an "ample period of time" that is mutually agreeable to
both companies. It is not clear if the email domain will be owned by Charter or Midwest
Cable.
6. Phone Number Continuity.
The Transaction will not require any change in customer phone numbers. Existing
Comcast telephone customers will be able to keep their current phone numbers
permanently.
7. Customer Equipment.
Customers will be able to continue to use their current premises equipment after the
Transaction closes. Midwest Cable will rely initially on Comcast for transition services to
support the X1 platform. Midwest Cable ultimately will deploy the Spectrum product suite
developed by Charter, which will include a cloud-based user interface similar to the one
X1 provides. The Spectrum guide is designed to improve significantly television search
and discovery functionality. Of critical importance here, the Spectrum product is
designed to accommodate current subscriber equipment (including deployed X1 boxes).
Accordingly, Customers who already have X1 equipment should be able to continue
using that equipment even after Midwest Cable transitions to the Spectrum offering.
After the transition, Midwest Cable video customers will also have authenticated access
to programming at no extra charge via the Spectrum N App—which is compatible with
the Apple iPad, iPhone, and iPod Touch running iOS6 or higher; all Amazon KindleFire
devices (excep for the first generation KindleFire); and all tablets and phones running
Android 4.0 and above.
8. Customer Billing.
Customers will begin to see bills (at the same time of the month) from Midwest Cable
and not Comcast. Approximately 15% of the customers pay online, directly from their
bank (whether via recurring payments or one-time). These customers are the only
customers that will be required to do anything to adjust their billing arrangements as they
z Recall that Midwest Cable's name will change to GreatLand Connections Inc. Presumably,the branding will be tied
to the name GreatLand not Midwest Cable.
11
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110
will be required to update their on-line banking information to direct payments to Midwest
Cable rather than to Comcast. This would not occur for several months after close, and
Midwest Cable will notify customers of the change —targeting customers who pay in this
fashion with messaging.
9. Continuation of an Internet Access Support Program for Low Income Households.
Midwest Cable will continue to offer Internet Essentials and, over time, may make
changes to properly serve this important constituency.
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111
FINANCIAL REVIEW
I. Scope of Review
Comcast Corporation, a Pennsylvania corporation ("Comcast"), is the ultimate parent
company of the current holder of the Franchise granted by the City. Under the Franchise,
Comcast, through its subsidiaries, operates the System that provides cable services and other
communication services in the City. Comcast has requested the City's approval of the proposed
Transfer of the System to Midwest Cable, Inc. (which ultimately will be known as GreatLand
Connections Inc.), a Delaware corporation ("Midwest"), an entity initially wholly owned by
Comcast and subsequently spun off to Comcast's existing shareholders.3 At the request of the
City, Moss & Barnett, PA has reviewed selected financial information that was provided by
Comcast and Midwest or publicly available to assess the financial qualifications of Midwest, as a
publicly traded entity, following completion of the proposed transfer of the System.
The financial information that was provided or available through other public sources and
to which our review has been limited, consists solely of the following financial information
(hereinafter referred to collectively as the "Financial Statements"):
1. FCC Form 394 "Application for Franchise Authority Consent to Assignment or
Transfer of Control of Cable Television Franchise" dated June 17, 2014, provided by
Comcast Corporation (the "Application"), along with such other exhibits as provided
therewith;
2. Form 8-K for Comcast Corporation filed with the Securities and Exchange
Commission on April 28, 2014 that includes the Comcast/Charter Transaction
Agreement between Comcast Corporation and Charter Communications, Inc. dated April
25, 2014 (the "Transaction Agreement");
3. Form 10-K for Comcast Corporation filed with the Securities and Exchange
Commission on February 12, 2014, for the fiscal year ended December 31, 2013;
4. Form 10-Q for Comcast Corporation filed with the Securities and Exchange
Commission on October 23, 2014 for the fiscal quarter and nine-month period ended
September 30, 2014;
5. Form 8-K for Comcast Corporation filed with the Securities and Exchange
Commission on October 29, 2014 that includes pro forma financial statements for the
Comcast Cable Systems to be Contributed to Midwest Cable, Inc.;
6. Form S-1 for Midwest Cable, Inc. filed with the Securities and Exchange
Commission on October 31, 2014;
7. The audited financial statements of Comcast Corporation and subsidiaries as of
December 31, 2013 and 2012, including Consolidated Balance Sheets as of
December 31, 2013 and 2012, Consolidated Statements of Income, Comprehensive
Income, Cash Flows and Change in Equity for the years ended December 31, 2013,
3 Form S-1 for Midwest Cable, Inc.filed with the Securities and Exchange Commission on October 31,2014("Form
S-1")at p.4.
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2012 and 2011, and the Independent Auditors' Report of Deloitte &Touche LLP dated
February 12, 2014;
8. The draft Charter Services Agreement by and between Midwest Cable, Inc. and
Charter Communications Operating, LLC.
9. The draft Transition Services Agreement by and between Midwest Cable, Inc.
and Comcast Corporation; and
10. Such other information as we requested and that was provided by Comcast
relating to the transfer.
Our procedure is limited to providing a summary of our analysis of the Financial
Statements in order to facilitate the City's assessment of the financial capabilities of Midwest to
acquire and operate the System in the City.
II. Overview of Transaction
As a result of the other transactions as discussed in Section III in this report and
pursuant to the Transaction Agreement, Comcast has agreed to divest itself from certain assets,
which includes the System, pursuant to a spin-off transaction.4 The transaction initially provides
for Comcast's creation of a new corporate subsidiary (Midwest) and its contribution of systems
(and related business assets and holdings) serving approximately 2.5 million existing Comcast
subscribers to Midwest.5 These systems are located in the Midwestern and Southeastern United
States.s Midwest is currently a wholly owned subsidiary of Comcast.'
Following the contribution, Comcast will spin-off the Midwest stock to its public
shareholders and Midwest will become a publicly traded corporation.B Prior to the spin-off of
Midwest, Midwest wilt incur debt in an amount equal to five times the stand-alone Midwest
assets' earnings before interest, taxes, depreciation and amortization (EBITDA) and distribute
the debt proceeds to or exchange those debts with Comcast.9 Midwest estimates the amount of
this initial debt to be approximately $7.8 billion.10 This transaction is subject to many conditions
including federal regula#ory app�oval, performance covenants, financing, favorable tax opinions
and other requirements of the parties." In addition, Comcast and Midwest will enter into a
Transition Services Agreement pursuant to which Comcast will continue to provide certain
services to Midwest for a period of 12 to 18 months pursuant to the applicable statements of
work.1z
After the completion of the above transactions, CCH 1, LLC ("New Charter"), a wholly
owned subsidiary of Charter Communications, Inc. will acquire an approximately thirty-three
4 Id. at p. 1.
5 Id.
6 Form 8-K for Comcast Corporation filed with the Securities and Exchange Commission on April 28,2014 at pp. 1-3
and Form S-1 at p. 1.
� Form S-1 at p. 1.
e Id. at p.2.
9 Id. at p. 1.
�o Id.
" Id. at p. 2.
12 Draft Transition Services Agreement by and between Midwest Cable Inc. and Comcast Corporation.
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percent (33%� interest in Midwest.13 The acquisition is structured as a merger of New Charter
into Midwest. 4 As consideration for this merger, New Charter will issue new stock to the
Midwest shareholders which will represent about ten percent (10%) of Charter's issued and
outstanding stock after the merger transaction.15 In conjunction with this transaction, Charter
will enter into a Charter Services Agreement with Midwest in which Charter will provide Midwest
with certain services, including, but not limited to corporate services, network operations,
engineering and IT, voice operations, field operations support services, customer services,
billing and collections, product services, marketing services, sales, business intelligence and
intellectual property licensing.16 Charter will receive compensation for out-of-pocket costs
related to these services plus a services fee equal to 4.25% of MidwesYs gross revenues." The
Charter Services Agreement has an initial three (3) year term with automatic one (1) year
renewals.18
As a result of the transactions described above, Midwest will become a publicly traded
company owned approximately two-thirds by Comcast's existing shareholders and one-third by
Charter's existing shareholders.19 The current Comcast shareholders will receive shares of
Charter's publicly traded stock and Midwest's publicly traded stock as part of the transactions.
The transactions are expected to close in early 2015.20
III Overview of Related Transactions
The spin-off transaction is part of a larger group of transactions that involve Charter
Communications, Inc., a Delaware corporation ("Charter"), and Time Warner Cable Inc., a
Delaware corporation ("TWC"). The other transactions include:21
1. TWC's merger into Tango Acquisition Sub, Inc., a wholly owned subsidiary of
Comcast;
2. Charter's purchase from Comcast of systems currently served by TWC that
represent approximately 1.5 million video subscribers;
3. Charter's exchange that includes its transfer to Comcast of certain cable systems
that represent approximately 1.6 million video subscribers in exchange for TWC systems
that represent approximately 1.5 million video subscribers; and Charter's internal
reorganization that results in the creation of New Charter.
13 Form 10-Q for Comcast Corporation filed with the Securities and Exchange Commission on October 23,2014 for
the fiscal quarter and nine-month period ended September 30, 2014("Form 10-Q")at p. 30.
�a Id.
�s Id.
16 Draft Charter Services Agreement by and between Midwest Cable, Inc.and Charter Communications Operating,
LLC and Form S-1 at p.70.
'� Id.
�e Id.
19 Form S-1 at p.2.
20 Form 10-Q at p. 29.
21 ComcasUCharter Transaction Agreement between Comcast Corporation and Charter Communications, Inc.dated
April 25, 2014.
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IV. Overview of Midwest
Midwest is a newly formed corporation that will provide full service communications and
cable services, along with other video programming, Internet services, and voice services to
residential and commercial customers in certain markets in the United States.22 Midwest was
formed in May of 2014 as a limited liability company and converted to a corporation in
September of 2014.23 After the contribution and spin-off, Midwest wilt be the fifth largest cable
operator in the United States.24 After the transaction, Midwest's cable system will pass
approximately 6.3 million potential customers and serve approximately 2.5 million residential
and commercial cable customers.25 Approximately sixty-five percent (65%) of MidwesYs
customers will be located in the Detroit, Michigan; St. Paul/Minneapolis, Minnesota; and
Indianapolis, Indiana markets.ZS As of the current time, an estimate of the number of direct
employees employed by Midwest is unstated and most Midwest services will be provided by
Comcast or Charter through the separate service agreements.27 MidwesYs management has an
extensive background in the cable industry.28
Cable providers and telecommunication companies operate in a competitive
environment and the financial performance of cable television operators, like Midwest and other
cable operators, are subject to many factors, including, but not limited to, the general business
conditions, programing costs, incumbent operators, digital broadcast satellite service,
technology advancements, burdensome service contracts, and customer preferences, as well
as competition from multiple sources, which provide and distribute programming, information,
news, entertainment and other telecommunication services.29 Midwest has no operating history
as a stand-alone compan�r and is dependent upon Comcast and Charter for all of its essential
services and operations.3 In addition, Midwest, as a result of the transaction, will be a highly
leveraged company, which may reduce its ability to withstand prolonged adverse business
conditions and there is no assurance that Midwest will be able to obtain financing in the future to
cover its cash flow needs.31 The cable business is inherently capital intensive, requiring capital
for the construction and maintenance of its communications systems. We specifically requested
information on Midwest's capital expenditures budget, but Comcast declined to provide that
information to us.32 Each of these factors could have a significant financial impact on Midwest
and its ability to continue to operate the System.
V. Findin�ts
We have analyzed the historical financial statements just for the assets to be contributed
by Comcast to Midwest and publicly filed information, along with its Services Agreement with
Charter and Transition Services Agreement with Comcast. Midwest declined to provide us with
22 Form S-1 at p.50.
zs Id.
Z4 FCC Form 394"Application for Franchise Authority Consent to Assignment or Transfer of Control of Cable
Television Franchise"dated June 17,2014, provided by Comcast Corporation (the"Application"),—Cover letter dated
June 17,2014.
25 Form S-1 at p. 50.
26 Id. at pp.50-51.
27 Id. at p.63.
28 Application—Exhibit 7.
29 Form S-1 at pp. 8-17.
3o Id. at p. 13.
31 Id. at pp. 17-19.
32Correspondence to author from Klayton F. Fennell,Vice President, Government Affairs, Comcast Corporation.
dated July 28,2014 at p. 15.
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projected statements of cash flow and income and a balance sheet for its future operations and
further stated that "Comcast has not and will not provide forward looking analyses related to
Midwest Cable...".33 Furthermore, other than the footnote disclosures in the historical financial
statements which were minimal, we were not provided with the detailed information on how
Comcast determined its revenue and expense allocations and its assumptions used to prepare
the Midwest financial statements. Deloitte &Touche LLP, one of the biggest accounting firms in
the United States, provided an Independent Auditors' Report dated October 24, 2014 on the
Comcast Cable Systems to be Contributed to Midwest Cable, Inc. and stated the Midwest
financiat statements fairly present, in all material respects, the financial condition of the Comcast
assets to be contributed to Midwest.34 The Auditors' Report states "The accompanying
combined financial statement reflect the assets, liabilities, revenue and expenses directly
attributabie to the Company(Midwestj, as well as aflocations deemed reasonable by Comcast
Corporation management, and do not necessarily reflect the combined financial position, result
of operations, and cash flows that would have resulted had the Company (Midwestj been
operated as a stand-alone entity during the period presented,i35
These historical audited financial statements do not include transaction costs and
ongoing additional costs and synergies of the new Midwest operation, including the new debt
and various new service fees for services provided by Charter and Comcast. Midwest's
management has provided financial statement, as adjusted for some of these other costs and
expenses that were not recognized by Comcast historically.36 These financial statements do not
include all potential adjustment items as noted in Midwest's public filings.37
As such, we are reporting our Findings hereunder based upon Comcast's historical
information as adjusted, for the assets and systems contributed to Midwest. Overall, from a
financial point-of-view, the information provided below shows that Midwest will be high{y
leveraged and have significant third party costs and obligations.
1. Analysis of Financial Statements. Federal law and FCC regulations provide
franchising authorities, such as the City, with limited guidance concerning the evaluation
of the financial qualifications of an applicant for a cable franchise. In evaluating the
financial capabilities of a cable operator, we believe it is appropriate to consider the
perFormance of an applicant based on the applicant's historical performance plus its
projected or budgeted financial information along with its financial capabilities
(financing). With a new company, historical information is not available. However in this
case, the pro forma financial statements with respect to the assets contributed by
Comcast to Midwest have been prepared by Comcast based upon its management's
assumptions. We have not independently verified the Comcast management's
allocations and assumptions and are relying on the publicly disclosed information as
provided by Midwest and Comcast. We believe a general review of the Midwest pro
forma financial information may provide some insight into the general financial
33�d.
�Form 8-K for Comcast Corporation filed with the Securities and Exchange Commission on October 29,2014 that
includes pro forma financial statements for the Comcast Cable Systems to be Contributed to Midwest Cable, Inc.
�"�orm 8-K")at p. F-1.
5 Id.
3s Form S-1 at pp. 31-36.
37 Id. at p. 36.
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operations of Midwest with respect to the Application, but we note that there are many
unanswered questions regarding Midwest's operations going forward.3a
As noted above, Midwest's operations include both cable television video services and
non-cable television services. According to Midwest's financial statements, Midwest's
residential video service compromised approximately forty-eight percent (48%) to fifty percent
(50%) of its revenue in 2013 and 2014.39 The Midwest financial information discussed below
includes all of the Midwest operations, including the non-cable television video services. We
have analyzed Midwest's pro forma financial statements, as adjusted as noted below, as of
June 30, 2014 and historical financial statements as of December 31, 2013 and 2012 in
providing the information in this Section. As described below, these financial statements do not
reflect the current fair value of Midwest's assets and liabilities, but rather the assets and
liabiiities are presented based on ComcasYs historical cost as determined by Comcast's
management.ao
2. Specific Financial Statement Data and Analysis.
a. Assets. The Comcast assets transferred to Midwest had (i) current
assets of$168 million as adjusted, $173 million, and $152 million; (ii) working
capital of a negative $211 million as adjusted, a negative $206 million, and a
negative $196 million; and (iii) total assets of$9,043 million as adjusted, $8,999
million, and $8,992 million as of June 30, 2014 and December 31, 2013 and
2012, respectively.41 Working capital, which is the excess of current assets over
current liabiiities, is a short-term analytical tool used to assess the ability of a
particular entity to meet its current financial obligations in the ordinary course of
business. The trend shows a slight increase in the negative working capitaf from
December 31, 2012 to June 30, 2014, and suggests that Midwest's cash ffow
may be unable to meet is current obligations. Midwest's current ratio (current
assets divided by current liabilities) as of June 30, 2014, of 0.44/1 is well below a
generally recognized standard of 1:1 for a sustainable business operation.4z
Approximately seventy-five percent (75%) of Midwest's assets are comprised of
its intangible Franchise Rights and Goodwill.43 According to Comcast, the current
fair market values of Midwest's net assets is considerably in excess of the
historical financiat information.`�
b. Liabilities and Net Equity. Midwest's pro forma financial statements
show (i) current liabilities of$379 million as adjusted, $379 million and $348
million; and (ii) deferred taxes of$2,836 million, $2,842 million and $2,835 million
as of June 30, 2014 and December 31, 2013 and 2012, respectively.4S Midwest's
long-term debt is estimated to be $7.8 billion which will have a significant impact
38 Correspondence to author from Klayton F. Fennell,Vice President, Government Affairs, Comcast Corporation.
dated July 28, 2014.
3s Form S-1 at p.44.
40 Id. at p.31.
41 Form 8-K at p. F-2 of the December 31,2013 Financial Statements and Form S-1 at p. 32.
4Z Form S-1 at p. 32.
43�d.
`�' Id.
45 Form 8-K at p. F-2 of the December 31,2013 Financial Statements, at p. F- 1 of the June 30,2014 Financial
Statements and Form S-1 at p. 32.
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on Midwest's balance sheet.46 The specific terms of the new indebtedness have
not been disclosed and are unknown; however Midwest has used an interest rate
of five percent (5%) on its adjusted pro forma financial statements.47 This
additional debt wil{ require Midwest to generate additional cash flow, including
through the operations and its service arrangement with Charter, to fund its debt
service. Midwest's initial debt leverage will be no greater than 5.Ox its 2014
EBITDA, which is consistent with some other cable operators (Charte�at 5.Ox,
Cablevision at 5.3x, Suddenlink at 5.7x and Mediacom at 5.3x).48 In order to
close these transactions, Midwest and the other parties will be required to obtain
certain levels of financing, which if not received would terminate the above
described transactions.
c. Income and Expense. Midwest's pro forma income statements, as
adjusted report (i) revenue ofi$2,299 million and $4,470 million; (ii) operating
expenses of$1,839 million and $3,618 million; and (iii) operating income of$460
million and $852 mi{lion for the six-month period ending June 30, 2014 and the
year ending December 31, 2013, respectively.49 Midwest is reporting net income
in its pro forma financial statements as adjusted of$158 million and $272 million
for the six-month period ending June 30, 2014 and the year ending December
31, 2013, respectively.50 The ability to generate cash is important for Midwest
due to its highly leveraged operations. A one percent (1%) increase in the
interest rate of the $7.8 billion of debt will result in an additional $78 million of
interest expense annually. As a result of the transactions and changes in its
business and business structure, Midwest will incur significant non-recurring
expenses which may negatively affect Midwest's short-term income statement
performance. In addition, as a result of the transaction, Midwest may be required
to incur significant capital expenditures for the assimilation its new business and
services along with additional programing costs to maintain its current
programming in the future.sl
VI. Summary
Using the FCC Form 394 to establish an absolute minimum standard of financial
qualifications that a proposed applicant must demonstrate in order to be qualified as the
successor operator of the System, Comcast and Midwest have the burden of demonstrating to
the City's satisfaction that Midwest has "sufficient net liquid assets on hand or available from
committed resources"to consummate the transaction and operate the System, together with its
newly acquired operations, for three (3) months. This minimum standard is not easy to apply to
a newly formed highly leveraged company with significant transaction and ongoing service
costs. In general, we have also considered the standard practice of lenders that requires
borrowers to maintain certain debt covenants on new and outstanding debt, inciuding certain
cash flow requirements, financial ratios and adequate security, in order to make and maintain a
loan and that if a borrower daes not meet these requirements, a loan may not be initially funded.
`�Form 10-Q at p. 5.
A�Form S-1 at p. 35.
48 Letter to Brian 7. Grogan, Esq. of Moss& Barnett, PA from Comcast and Midwest Cable, dated September 30,
2014,at p. 15.
49Form S-1 at pp.33-34.
5old.
51 Id. at p. 3.
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Based solely on Midwest's financial information that we reviewed, Midwest's public
fiiings assume that Midwest will receive sufficient debt commitments and the required debt to
consummate the Transaction Agreement. Based on the foregoing and limited strictly to the
financial information analyzed in conducting this review, we do not believe that Comcast's
request for transfer of the ownership of the System to Midwest can reasonably be denied based
solely on a lack of financial qualifications of Midwest, if the financing to consummate the
transaction is obtained by Midwest, as Midwest would have the funds to acquire and operate the
System for at least some initial period of time. The failure to obtain the financing would result in
the termination of the Transaction Agreement and proposed transfer of ownership. Due to the
many uncertainties and lack of information regarding the proposed financing and future
operations, there is not enough information that has been made available to review to make any
conclusions regarding the financial qualification of Midwest's ability to own and operate the
System after the acquisition and initial operating period.
In the event the City elects to proceed with approving the proposed transfer of control,
the assessment of Midwest's financ+al qualifications shauld not be construed in any way to
constitute an opinion as to the financial capability or stability of Midwest to (i) operate under the
Franchise, (ii) operate its other operations, or (iii) successfully consummate the transactions as
contemplated in the Transaction Agreement. The sufficiency of the procedures used in making
an assessment of Midwest's financial qualifications and its capability to operate the System is
solely the responsibility of the City. Consequently, we make no representation regarding the
sufficiency of the procedures used either for the purpose for which this analysis of financial
capabilities and qualifications was requested or for any other purpose.
Lastly, in order to ensure compliance with its obiigations to operate the System and
since we have based a significant pa�t of our anaVysis on the financial statements, as adjusted,
of Midwest, the parent entity, we recommend that the City maintain any performance bonds or
corporate parent guaranty, if any, required under any City Franchise. If security funds are not
required in the City Franchise, the City may wish to consider pursu+ng a corporate parent
guaranty from Midwest in a form mutually ag�eeable to Midwest and the City. A model
resolution has also been provided for the City's review and consideration.
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� AGENDA ITEM
`;"�' CITY COUNCIL MEETING OF JANUARY 5, 2015
Fridley
INFORMAL STATUS REPORTS
120