CCM 09/25/2017
CITY COUNCIL MEETING
CITY OF FRIDLEY
SEPTEMBER 25, 2017
The City Council meeting for the City of Fridley was called to order by Mayor Lund at 7:06 p.m.
ROLL CALL:
Mayor Lund
Councilmember Barnette
Councilmember Varichak
Councilmember Saefke
Councilmember Bolkcom
OTHERS PRESENT:
Scott Hickok, Community Development Director
Shelly Peterson, Finance Director
James Kosluchar, Public Works Director
Wally Wysopal, City Manager
Darcy Erickson, City Attorney
PROCLAMATIONS:
Domestic Violence Awareness Month: October, 2017
Minnesota Manufacturing Week: October 1-7, 2017
Fire Prevention Week: October 8-14, 2017
Community Planning Month: October, 2017
APPROVAL OF PROPOSED CONSENT AGENDA:
APPROVAL OF MINUTES:
City Council Meeting of September 11, 2017.
APPROVED.
NEW BUSEINSS:
1.Variance Request, VAR #17-02, by Gaughan Development, LLC, to Reduce the Side
Yard Setback on a Corner Lot on the East Side from 35 Feet to 30 Feet, to Allow for the
Construction of Two New Retail Buildings on the Vacant Parcel of Land Located at the
Northwest Corner of the Intersection of 83Avenue and University Avenue;
rd
and
Resolution Approving Variance, VAR #17-02, to Reduce the Side Yard Setback on a
Corner Lot from 35 Feet to 30 Feet to Allow the Development of the Vacant Parcel of
Land on the Northwest Corner of University Avenue NE and 83Avenue NE,
rd
Petitioned by Gaughan Development, LLC (Ward 3).
FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 25, 2017 PAGE 2
Councilmember Bolkcom
asked on page 27 to change the word “analysis” in Stipulation #8 to
“analyze”.
APPROVED VARIANCE, VAR 317-02, BY GAUGHAN DEVELOPMENT, LLC, AND
ADOPTED RESOLUTION NO. 2017-52.
2.Approve Change Order No. 1 for the 2017 Street Project No. ST2017-01.
Councilmember Bolkcom
asked who made the request for the change order.
Jim Kosluchar,
Public Works Director, replied it was a calculation error on our part. The work
was done according to quantity.
APPROVED.
3.Claims 1709 (PCard); 178076 – 178234.
APPROVED.
ADOPTION OF PROPOSED CONSENT AGENDA:
MOTION
by Councilmember Barnette to approve the Proposed Consent Agenda with the
change to the Appeals Commission minutes and Stipulation #8 in Item 1. Seconded by
Councilmember Varichak.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
OPEN FORUM, VISITORS:
No one from the audience spoke.
ADOPTION OF AGENDA:
MOTION
by Councilmember Bolkcom to approve the agenda with the addition of Item No. 9.
Seconded by Councilmember Saefke.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
NEW BUSINESS:
4.First Reading of an Ordinance to Amend the Fridley City Code Chapter 205.30 0-5
Telecommunications Towers and Facilities District, to Allow a Telecommunications
Tower to be 150 Foot Height Provided Conditions can be Met to Blend into the
Surrounding Environment.
FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 25, 2017 PAGE 3
Scott Hickok,
Community Development Director, stated the City’s telecommunications overlay
created in 1997 has been a great tool that has needed little change over the last 20 years.
However, technology is continually changing, which requires updates from time-to-time. There
have been inquiries about whether under certain conditions a 150 foot tall tower might be
permitted rather than the code-required 125 foot tower.
Mr. Hickok
said that Staff has analyzed this question and is providing a recommendation of
approval if the following criteria can be met:
The tower is located within 250 feet of any of the following structures that exceed the
height of 150 feet. These structures include: buildings, power lines, and train/rail yard
fixtures such as light fixtures.
The tower can meet or exceed any local, State, or Federal regulations relative to tower
fall distance.
All permits required to replace or expand an existing tower shall be removed and
approved by the City prior to alteration.
Mr. Hickok
said the current code requires stealth design so that the tower, to the extent it can,
will blend in with the surrounding environment. In Fridley, there are enormous above-ground
power structures, railroad signal structures and other elements which exceed 125 feet high. By
allowing an increase in height on cell towers in areas where other taller structures exist, the
stealth intent can be met. The increase in height will also allow for more co-location on the
towers of other cell carrier companies, therefore reducing the need for more towers.
Mr. Hickok
said the Planning Commission held a public hearing for Text Amendment, TA
#17-01 at their August 16, 2017 meeting. No comments from the public were received. The
Commission recommended approval of the ordinance amendment. The City Council held its
public hearing on this amendment on September 11, 2017. No public comments were received.
City staff recommends the first reading of the ordinance as submitted.
MOTION
by Councilmember Saefke to waive the reading of the ordinance and adopt the
ordinance on first reading. Seconded Councilmember Bolkcom.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
5.Resolution Approving and Authorizing Signing an Agreement with Police Officers of
the City of Fridley Police Department for the Years 2017, 2018 and 2019.
Deborah Dahl,
Human Resources Director, said the Fridley Police Officers (LELS Local #119)
is one of three labor groups at the City. Currently, there are 29 members, and the current
contract expired on December 31, 2016. Police officers are considered essential employees, so
they must reach an agreement or go to arbitration. We met on two occasions to discuss the
contract. We reached an impasse over wages and were headed to mediation. We avoided
FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 25, 2017 PAGE 4
mediation by coming to an agreement regarding wages. Both parties have agreed upon the terms
presented in the memorandum and reached a tentative agreement.
Ms. Dahl
said like the sergeants and the firefighters, the patrol unit recognized the burdens of the
City’s economic conditions, due to the levy restriction and the priorities of the new civic campus.
Wages were at the center of the discussions and the market was the primary issue with this unit
with a desire to remain competitive. The patrol union and the City agreed that we trailed the
market and improvements were needed. Recruitment and retention is difficult if we do not
remain competitive and fair internally.
Ms. Dahl s
tated our history has consistently showed that all groups continue to lag behind the
market in base wages. The goal is to maintain good relationships with all employees and labor
groups. The City’s interest is to establish fairness across all groups. The proposed agreement is
a three-year contract (2017-2019). It provides insurance – Me Too (Same as non-union). Wage
increases would be 2.5% for January 1, 2017; 2.75% +1% market adjustment on January 1, 2018,
and 3% + 5% for January 1, 2019. Non-union employees receive 2% for 2017 and 2% in 2018.
The agreement on wages is similar to the sergeant’s contract, with the exception of the market
adjustment.
Ms. Dahl
stated that one additional holiday was added, from 11 to 12. Comp Time was
increased from 36 to 40 hours, and the language was added to the Specialty Pay section. The
total costs summarized in the Council memo are $2,800,100 for 2017, $3,021,800 in 2018 and
$3,242,000 in 2019. The cost for additional .4% COLA in 2017 is estimated at $14,000. This
does not include court time or night shift differential, which is unplanned. It also does not
include the possibility of the Legislature changing the employer contributions for the PERA
pension (1.5% over 2 years).
Ms. Dahl
said action is needed to approve the resolution adopting the tentative agreement. This
will ratify the contract effective January 1, 2017. Retroactive pay will be applied within the next
few weeks. If approved tonight, we will have reached settlements with all three of our City’s
labor unions for three years. All labor groups and their representatives are very dedicated,
passionate and thoughtful. New representation is needed due to staffing changes. She said she
was grateful for Director Weierke for his leadership and thanked staff for their help.
Brian Weierke
, Director of Police, said he was excited about the contract. Officers have
embraced the fabric of the community. He is proud of what they are doing. The City has an
outstanding group of police officers. This is a great place to work and he appreciates Council’s
support.
MOTION
by Councilmember Barnette to adopt Resolution 2017-53. Seconded by
Councilmember Saefke.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 25, 2017 PAGE 5
6.Resolution Certifying Proposed Tax Levy Requirements for 2018 to the County of
Anoka.
Shelly Peterson,
Finance Director, stated Chapter 275 of Minnesota Statute requires the City to
certify a proposed property tax levy to Anoka County by September 30. The County sends
parcel-specific tax estimates the week of November 13. The operational levy for the City of
Fridley makes up over 75% of the total City levy. Chapter 7 of the City Charter has been
modified from a ley not to exceed the change in the % CPI from 2015 and 2016 to a levy not to
exceed 5% of the prior year’s levy, but may increase an additional 3% with the vote of four
members of Council. This change is scheduled to become effective on November 2, provided a
petition is not submitted by October 3.
Ms. Peterson
said the 2018 proposed levy was developed based on the new Charter Restriction.
The Charter change will take effect prior to the adoption of the 2018 final levy on December 11.
The final levy must be equal to or less than the proposed levy. If the Charter is not successfully
amended, the levy would be lowered and the budget reduced. From the information available
on 5 of 6 surrounding communities, the General Operation increase average was 5.32% and the
total levy increases, including debt, averaged 5.99%. Fridley General Operations is 5% with a
total levy increase of 4.86%.
Ms. Peterson
stated the City must certify a proposed property tax levy to Anoka County by
September 30. The County sends parcel-specific tax estimates the week of November 13. On
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November 27 the final levy and budget will be presented to Council at which time the public
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must be allowed to speak. On December 11 the Council adopts a final levy and budget which is
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due to Anoka County by December 28. Staff is recommending that Council adopt the attached
resolution to certify the proposed tax levy requirements for 2018.
MOTION
by Councilmember Saefke to adopt Resolution No. 2017-54. Seconded by
Councilmember Bolkcom.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY
7.Resolution Adopting the 2018 Proposed General Fund Budget
Shelly Peterson,
Finance Director, said Chapter 275 of Minnesota State Statute requires the City
to certify a proposed budget to Anoka County on or before September 30. On November 27, the
final levy and budget will be presented to Council at which time the public must be allowed to
speak. On December 11, the Council will be asked to adopt a final levy and budget which are
due to Anoka County by December 28. The proposed budget may change as more information
becomes available. The 2018 preliminary operational tax levy reflects a 5% increase from the
prior year. This levy represents 66% of the General Fund revenue budget needed to support
operations.
Ms. Peterson
said the General Fund budget provides funding for the day-to-day operations of
the City. Personnel costs are almost 80% of the General Fund expenditures. Nearly half of the
FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 25, 2017 PAGE 6
expenditures fund Public Safety. The revenues projected are anticipated to provide the funding
necessary to support operating expenditures. If the proposed levy and budget are adopted
tonight, utility rates for 2018 will be presented to Council on November 12 for approval. The
budget is provided to Council for review in mid-November and the next budget conference
meeting will be held on November 27. Council will hold a public meeting on November 27.
Staff is recommending that Council adopt the attached resolution adopting the proposed General
Fund budget for 2018.
Mayor Lund
said he hopes that someday the LGA funds can be used just for capital
investments. He asked how much is anticipated for general funding and if the City can make
ends meet with the 5% increase. The preference is not to use LGA funds to run the City but the
general funding would have to have a larger increase than 5% for that to happen.
Ms. Peterson
replied the only way to make it work would be double digit levy increases for
some time in the future. To continue with current service levels and no additional staffing, 5%
is required to balance the operational budget.
MOTION
by Councilmember Saefke to adopt Resolution No. 2017-55. Seconded by
Councilmember Bolkcom.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
8.Motion to Direct City Staff to Negotiate a Joint Powers Agreement and Services
Agreement with the City of Coon Rapids for Prosecutorial Services Effective January 2,
2018.
Wally Wysopal,
City Manager, stated the City has contracted for prosecutorial services with
Carl Newquist’s law firm for the last 40 years and they have done well for the City. Staff
appreciates all the work that has been done, but Mr. Newquist is retiring from the firm. Staff met
with the Police Chief, Finance Director and Community Development Director. They thought
this would be an opportunity to look at other ways this service could be provided.
Mr. Wysopal
said staff reviewed several options which included negotiating with Carl, going
out for Requests for Proposal, creating an in-house prosecutorial department, and collaborating
with an existing city. The Request for Proposal option requires a 6-month lead time. Therefore,
it was not given consideration. In-house prosecution was favored by several cities including
Coon Rapids, Minnetonka and Bloomington. The volume of prosecutions in Fridley creates a
favorable condition for an in-house arrangement. However, the costs of start-up of personnel and
office space are significant obstacles that cannot be overcome within the City’s current financial
condition.
Mr. Wysopal
stated City staff gave consideration to collaboration with another city. The cities
of Fridley and Coon Rapids share similar policing philosophies and practices. There is also the
opportunity to distribute similar costs over a larger base if the two cities operated as one for
purposes of criminal prosecution. As they are both in Anoka County, patrol officers could share
FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 25, 2017 PAGE 7
the same court calendar, thus saving overtime costs and attorney time related to prosecution. The
Fridley approached Coon Rapids about sharing services. After several meetings, Coon Rapids
presented Fridley with a proposal for services.
Mr. Wysopal
said the proposal would save the City of Fridley $40,000 over current costs. It also
has the opportunity to reduce overtime expenses pertaining to patrol officer court time. It opens
the door for victim services and administrative ticketing for code enforcement. Services could
start January 1, 2018. The scope of services would be for criminal prosecution, and would not
affect the current arrangements for civil legal services provided by Darcy Erickson.
Mr. Wysopal
said before the two cities meet to finalize the terms and conditions, it would be
beneficial if the City Council would direct City staff to take these next steps. A Joint Powers
Agreement would be created between the two cities. The Services Agreement would be used to
spell out the specific services and costs and term.
Mayor Lund
said Carl Newquist has been the attorney for the City for 40 years and has done a
very good job for the City.
Councilmember Bolkcom
asked if the draft proposal should be put into the record.
Mr. Wysopal
replied no, this document will be used as a baseline.
MOTION
by Councilmember Barnette to Direct City Staff to Negotiate a Joint Powers
Agreement and Services Agreement with the City of Coon Rapids for Prosecutorial Services
Effective January 2, 2018. Seconded by Councilmember Varichak.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
9.Resolution Reciting a Proposal for an Industrial Development Project Taking Official
Action with Respect Thereto Indicating Preliminary Intent to Assist the Financing of
the Project Pursuant to the Minnesota Municipal Industrial Development Act (Brenk
Brothers Inc. Project).
Shelly Peterson,
Finance Director, stated the City has received a proposal from Brenk Properties
and Brenk Brothers Inc. to assist them in securing financing for a significant expansion project.
Although the formal request is anticipated to come back to Council in the first quarter of 2018,
this resolution indicates our intent to assist, which will allow Brenk to reimburse itself for
expenses once financing is secured.
Ms. Peterson
said staff has met with Brenk Brothers on their proposed plans. Brenk is a
successful machine shop and employer in the City. Staff is supportive of plans which will allow
Brenk Brothers to remain in the City. The City’s Bond Counsel has reviewed the preliminary
request and also approves the resolution indicating the City’s intent.
FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 25, 2017 PAGE 8
Ms. Peterson
noted that conduit debt does not constitute a debt of the City. The City will not be
pledging its full faith and credit towards any future payment. Debt is considered a revenue note
that is paid based on a pledged revenue stream which is solely the obligation of Brenk Brothers.
Because this is a nonbank-qualified industrial revenue bond, it is excluded from the City’s $10
million conduit debt issuance limit. That limit applies to bank-qualified debt which is typically,
nonprofit or housing type projects.
Ms. Peterson
said in addition to the attached resolution, this issuance of conduit debt by the City
is subject to:
Holding a public hearing on the proposal.
The approval of the project by the City and the Minnesota Department of Employment
and Economic Development.
Review and approval of the proposed project by bond counsel.
Final approval by the City Council, the company, and the purchaser of the bonds as to the
ultimate details of the financing of the project.
Receipt of federal bonding allocation for the bonds.
Staff recommends Council adopt a resolution indicating the City’s intent to assist Brenk Brothers
Inc. with securing financing for the future expansion of 7490 Central Avenue.
Councilmember Bolkcom
asked how many employees there were.
Scott Hickok,
Community Development Director,replied that he would get the number of
employees and report back to Council.
MOTION
by Councilmember Varichak to adopt Resolution No. 2017-56. Seconded by
Councilmember Barnette.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
10.Informal Status Reports.
Scott Hickok,
Community Development Director, made the following announcements:
thst
The Recycling Event is coming up on October 7 from 9-1 up on 71. Cards have been
sent in the mail and if you fill them out ahead of time it will speed up the line. Details of
the event are on the card.
The Anoka County Commute Solutions shuttle is running at the North Star Station for
Unity Hospital, BAE, Commons Power and Medtronic. This is a free shuttle. For more
information call 763-324-3240 or visit www.commute-solultions@co.anoka.mn.us.
Mayor Lund
added that paper shredding will be offered during the Recycling Event next door to
the Fire Station from 10 a.m. to 12 p.m.
FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 25, 2017 PAGE 9
Councilmember Bolkcom
thanked those who attended the neighborhood meeting to talk about
Locke Park and what their vision was for that area. She said on October 5 there is an open show
at the Ban fill-Locke Center.
ADJOURN:
MOTION
by Councilmember Barnette to adjourn. Seconded by Councilmember Varichak.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED AND THE MEETING ADJOURNED AT 8:12 P.M.
Respectfully submitted,
Krista Peterson Scott J. Lund
Recording Secretary Mayor