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CHA 09/24/2001 TO: Charter Commission Members FROM: Deb Skogen, City Clerk and Staff Liaison Date: September 19, 2001 CITYOF Re: September 24, 2001 Charter Meeting FRIDLEY The next Charter Commission meeting will be held on Monday, September 24th in Conference Room A in the upper level of City Hall. Attached for your review and discussion are the minutes of May 21, 2001,the article written about the Charter Commission from the Sep/Oct Fridley Community Report and the re-codified pages for Chapter 6 and Chapter 8 due to approved ordinances. I spoke with our Community Development Director Scott Hickok to find out what procedures the city uses prior to taking property through eminent domain. He said that the city follows State Statutes and tries to negotiate with property owners. If negotiations breakdown or stop, the city would then take the property through eminent domain. He will prepare a brief outline of the procedures for the Monday meeting. • If you have any questions regarding this meeting,please let me know as soon as possible. In addition,please contact me at(763) 572-3523 if you cannot attend the meeting. CITY OF FRIDLEY CHARTER COMMISSION AGENDA MONDAY, SEPTEMBER 24, 2001 7:00 P.M. LOCATION: Fridley Municipal Center Conference Room A (Upper Level) CALL TO ORDER: ROLL CALL: APPROVAL OF AGENDA: APPROVAL OF MINUTES May 21, 2001 1. Administrative Matters A. Membership B. September/October Community Report C. Re-codified Chapters 6 and 8 2. Discussion of Glossary/Index 3. Consideration of items for future discussion ADJOURNMENT Next regular meeting: October 29,2001 at 7:00 p.m. CITY OF FRIDLEY •'■ CHARTER COMMISSION MEETING May 21,2001 CALL TO ORDER: Chairperson Gordon called the Charter Commission meeting to order at 7:07 p.m. ROLL CALL: Members Present: Don Findell,Craig Gordon,Scott Heck,Nancy Jorgenson,Deborah Monden,Maynard Nielsen,Regina Querimit,Francis Van Dan Members Absent: Suzanne Alvite Warren,Carter Hendricks,Bill Holm,and Cindy Soule Others Present: Deb Skogen,City Clerk/Staff Liaison APPROVAL OF AGENDA: MOTION by Commissioner Jorgenson seconded by Commissioner Nielsen to approve the agenda,with a change of date reflected of the minutes. UPON A VOICE VOTE,ALL VOTING AYE,CHAIRPERSON GORDON DECLARED THE MOTION CARRIED UNANIMOUSLY. APPROVAL OF APRIL 30,2001,CHARTER COMMISSION MINUTES: MOTION by Commissioner Monden seconded by Commissioner Findell to approve the April 30,2001,Charter Commission Minutes,changing the word Direction to Director under Discussion of Chapter 8. UPON A VOICE VOTE,ALL VOTING AYE,CHAIRPERSON GORDON DECLARED THE MOTION CARRIED UNANIMOUSLY. 1. ADMINISTRATIVE MATTERS Chairperson Gordon noted there were three openings on the Charter Commission. Commissioner VanDan commented on this relationship with outgoing Commissioner Fitzpatrick and commended her and her former husband for all of the community involvement. Commissioner Gordon said a plaque and letter had been sent to Ms.Fitzpatrick commending her community service. 2. DISCUSSION OF CHAPTER 9-EMINENT DOMAIN Commissioner Jorgenson said that eminent domain was used as a last resort and was used only if negotiations broke down. She cited three examples of when the process might have been used: • The apartment buildings that came down to put up Christianson Crossings-they could not negotiate a reasonable term and the eminent domain process was used. • Rental property near Moore lake-a one bedroom house;and • It was suggested during the Medtronic project when negotiations broke down with one homeowner,but everyone settled. To the best of her knowledge it has not been used on residential property,only rental. CHARTER COMMISSION MEETING OF MAY 21,2001 PAGE 2 Commissioner Heck wondered what procedures were used and whether or not there was something in writing and whether it was a common practice. Commissioner Jorgenson said the Federal Housing Law was followed whereby an appraisal of the property is done for use as a base price and additional costs are defmed. She did not think the process would begin with eminent domain as property owners to have rights and that negotiations would start the process. Commissioner VanDan said the term eminent domain was a Latin term and it was not defmed in the Constitution, which described individual property. Commission Van Dan said that eminent domain was the taking of property. She suggested including a defmition of eminent domain at the beginning of the chapter. Commissioner Heck said he was unfamiliar and had not experience with eminent domain and wondered whether or not people had gotten a fair judgement on their property. Commissioner Monden requested more information on the negotiation process as to what the city uses and how much advance notice is given to a property owner before eminent domain is used. Commissioner Jorgenson explained that the city hired a realtor to negotiate with property owners who would be affected. She said cities have a defmite obligation to property owners when property is taken for a public roadway to negotiate a reasonable settlement. Commissioner Monden said she would like to have more information on the process. Ms. Skogen said she would have Community Development prepare a list of procedures used in acquiring property for public use and forward the information to the Commission. 3. DISCUSSION OF GLOSSARY/INDEX Commissioner Heck said he had reviewed Chapter 1 and did not see any vague language. He also would like to see the Glossary become part of the Charter. Commissioner Jorgenson said that if the commissioners found a word they were unsure of they could use the search process to fmd out if the word was listed elsewhere in the charter. There was a discussion on how they should pursue fmding words that needed to be defmed and it was determined that each Commissioner should review the whole Charter this summer and come back with a list of terms that the commissioners could agree upon. 4. CONSIDERATION OF ITEMS FOR FUTURE DISCUSSION Commissioner Jorgenson said she had received a request from a city council member to bring up Chapter 2,Section 2.05,to see whether or not it could be changed. This section references that city council members cannot work for the city during their tenure. She said Council Member Wolfe would like to have a gymnastics school for youth through the Fridley Recreation Department,as the previous person who had the school is no longer doing it. Council Member Wolfe thought the city could make some money on this school. She said she had suggested to him that he do the school through School District 14's Community Education. Commissioner Querimit felt that there was probably good reason why a council member could not work for the city while serving on the council and that if it were changed for him,you would have to change it for others. She thought the language should remain intact. After further discussion,the Commissioners agreed the language should remain the same. A request was made to have the bylaws and the minutes mailed to the commissioners in two to three weeks. CHARTER COMMISSION MEETING OF MAY 21,2001 PAGE 3 Commissioner Jorgenson mentioned that federal changes in the Telecommunications Act have stripped the cities of the power. ADJOURNMENT: MOTION by Commissioner Monden seconded by Commissioner Querimit to adjourn the meeting. UPON A VOICE VOTE,ALL VOTING AYE,CHAIRPERSON GORDON DECLARED THE MOTION CARRIED AND THE MEETING WAS ADJOURNED AT 8:05 P.M. Respectfully submitted, Debra A. Skogen, Deborah Monden,Secretary City Clerk/Staff Liaison • Fridley Community Report•Page 7 City Policy Charter Commission Provides Valuable Oversight Legislative Changes Have Major Impact on Cities Recently,the Fridley City Council approved a While the Charter Commission initiates many Charter amendment that changed the require- of the changes in our City Charter, there are The State Legislature made major changes this ments for bidding and the Council majority 'several ways in which the Charter may be year in the way Minnesotans will be taxed in needed for approving a public assessment. changed.A committee of no less than five resi- 2002. These changes will have a significant Those who watched the Council discussions on dents may circulate a petition among registered impact on how local government is funded and cable television may have wondered about voters as was done last fall. If the committee on a wide variety of state and local programs and Fridley's status as a charter city and about the acquires signatures in support of their proposed services.While the specific outcomes arc not all role of the Fridley Charter Commission.Here Charter change that are equivalent in number readily apparent, there arc some generalizations are a few comments that may shed some light to 5%of the number of voters in the last gen- that we can make. on both subjects. eral election,the proposal will be placed on the ballot in the next general election.If approved The most obvious of these generalizations is that by the voters, as taxing restrictions were last about$900 million in the statewide cost of K-12 Statutory vs.Charter Cities fall,the proposed change becomes law. education has been assumed by the State.This In Minnesota, most cities are statutory cities number represents about half the amount levied that must depend on State law to define their locally for education. In order to pay for this organization and authority. Only 106 of 854 Alternatively, the Commission may initiate a cost,the Legislature established a new state prop- Minnesota cities are Charter cities that have change.If approved by unanimous vote of the erty tax on business property that will generate their organization and authority defined in Council, it becomes law. In the event the an estimated$592 million annually.It also dim- locally approved charters. Charter cities may Council fails to approve the proposed amend- inated the Homestead and Agricultural Credit exercise any powers allowed by their charter ment,the Commission may choose to take the Assistance (HACA) that it had been paying , and not forbidden by the proposal to the voters for cities.The savings from this cut is estimated at State.In some cases,char- _ approval. The Council about$260 million.The remainder of the cost of ter provisions may be /1 cil/ charier yin(') may also initiate Charter the education buy down will be paid for from the more restrictive than State changes. After review by projected budget surplus. The impact is to law. Whatever the case, local/c'ac%t'.s 9'rc'alc'/' the Charter Commission, remove about half of the cost of funding local local leaders have greater the proposal is submitted education from the local property tax burden. flexibility to tailor local /le1/////1y lu la//n/' to the voters for their law to meet local needs. approval. Since Fridley's In addition to shifting the financial responsibili- localla(t,lo local Charter was approved in ty for education,the Legislature also reduced the 1957,there have been 27 tax rates used for calculating local property taxes. Fridley was incorporated Peel-A. Charter changes. The resulting property tax reduction varies by in 1949 as a statutory city. type of property and by value of property within ,.."---- In 1957,however,the vot- the different property types.Statewide,the taxes ers adopted a City Charter and established Future Charter Changes on residential homesteads, for example, will be Fridley as a charter city.They also established a The Charter Commission is currently develop- reduced by 22.4%. In general,however,the tax Charter Commission.Unlike other City com- ing a glossary of terms used in the Charter.As reduction will be bigger for higher value homes. missions,the Charter Commission is appoint- in other matters,the Commission approaches A House of Representatives Research Report ed by District Court.Its fifteen members serve this task with a serious intent to improve the dated June 27 estimates that in the metropolitan four-year terms and may not serve more than Charter in a manner that benefits all citizens. area the owner of a home valued at $103,900 two consecutive terms. According to Deb Skogen, the Fridley City will see a 17% property tax reduction. The Clerk,"partisanship ends at the door."There is owner of a home valued at$311,400 will realize no attempt to influence or establish City poli- a 28%tax reduction. Role of the Charter Commission ry Charter Commission members are the custodi- The changes for business property are somewhat ans of the charter.They meet eight times a year confusing.While the tax orates for local property to consider charter changes suggested by mem- The Charter Commission meets the first taxes were reduced by 41%,the new state prop- hers,citizens,City staff and the City Council. Monday in January through May and erty tax on business property will shrink the Members of the Commission suggest the September through November at 7:00 p.m.at overall tax reduction on this type of property to majority of these changes.They also watch for the Municipal Center.Members of the public about 10%. The House Research Report esti- changes in State law and other city charters and are welcome to attend or,alternatively,to apply mates that business property tax reductions for attempt to be responsive to the needs-of citi- for appointment to one of 3 open positions on the metropolitan area will actually be much less zens. In recent years, they have focused on the Commission.If you have questions about than 10%. They estimate that taxes on a those charter provisions that deal with initia- the Charter Commission or wish to apply for $300,000 business property will be reduced by rive; referendum and recall.They also exam- one of the positions, contact the City Clerk, 6.4%.Taxes on a$1,000,000 property will be fined Charter language for clarity and consisten- Deb Skogen at 572-3523. reduced by 8%. Taxes on apartments will be cy.They found problems with both,and after reduced by 24.4%statewide. In the metropoli- more than two and a half years of study for- tan area,the reduction for apartments will be an warded their recommendations to the City estimated 23.9%. Council for approval. ty• All of these property tax estimates,incidentally, Mugs assume that cities will levy back their HACA, Changing the Charter top by City HaI1.tQ and Local Government Aid reductions. In g g pick up a mtr j,`'fI+I�� Fridley's case, it assumes that the City will levy Other recent changes have included amend- t'^ only 55,or back$1,222,731 in additional property taxes to menu that provided clarification of the voter 572-3533 or replace the lost State revenues.Thus,while over- initiated restrictions on the City's taxing 571-3450 all property taxes for nearly all Fridley home- authority. In this effort, the Commission owners will be reduced by double digit amounts, worked with a citizen group that circulated an the City's portion of the property tax bill is like- initiative petition to determine the intent of the ly to rise by more than 30%. Commission and to draft changes responsive to that intent.The final product, among other A major outcome of these changes in property things, fished Aire the restrictions applied taxation will be the reduced effectiveness of to citywidide e fees and fees and not to user fees. -