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CHM 03/22/2010 - 29991CITY OF FRIDLEY CHARTER COMMISSION MEETING March 22, 2010 CALL TO ORDER: Chairperson Soule called the Charter Commission meeting to order at 7:02 p.m. ROLL CALL: Members Present: Commissioners Don Findell, Marion Flickinger, Carol Hoiby, Nancy Jorgenson, Rick Nelson, Pam Reynolds, Noel Ryan, Lois Scholzen and Cindy Soule Members Absent: Commissioners Peter Borman, Gary Braam, Bill Holm, Ted Kranz, Leslie Plummer and Keith Shaw Others Present: Deb Skogen, City Clerk and Cindy Ruschy Staff Liaison APPROVAL OF AGENDA Commissioner Jorgenson MOVED and Commissioner Hoiby seconded a motion approving the meeting agenda. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON SOULE DECLARED THE MOTION CARRIED APPROVAL OF MINUTES Commissioner Reynolds provided the names of the Commissions who made and seconded the motions approving the agenda and minutes to complete the minutes. Commissioner Reynolds asked if on page 3, paragraph 4, if it should be clarified to have the words "cast on the ballot question" added to the paragraph. Commissioner Findell felt that clarified it, so it was agreed the words would be added. Commissioner Reynolds MOVED and Commissioner Findell seconded a motion approving the Charter Commission meeting minutes of February 22, 2010, as amended. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON SOULE DECLARED THE MOTION CARRIED ADMINISTRATIVE MATTERS A. Election of Officers Chairperson Soule reviewed the Nominations Committee report, provided to the Charter Commission in the February and March agenda packets, nominating Cindy Soule as Chairperson, Rick Nelson as Vice Chairperson and Carol Hoiby as Secretary for the year 2010 to 2011. She opened the floor for nominations. After three calls for nominations, Commissioner Jorgenson MOVED and Commissioner Reynolds seconded a motion closing the nominations. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON SOULE DECLARED THE MOTION CARRIED. Commissioner Findell MOVED and Commissioner Reynolds seconded a motion for a unanimous vote to elect the slate of candidates put forth by the Nominating Committee. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON SOULE DECLARED THE MOTION CARRIED. Approved April 26, 2010 CHARTER COMMISSION MEETING OF MARCH 22, 2010 PAGE 2 B. Vote on By -Laws Amendment Chairperson Soule said she had requested an annual review of the by -laws. She said the by -laws reflected no secret votes but she remembered there was a time when there was a secret vote and thought the by -laws should be clarified for contested races. Commissioner Nelson MOVED and Commissioner Reynolds seconded a motion approving the amendment to the by -laws as proposed and provided in the February and March Charter Commission Agenda Packets. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON SOULE DECLARED THE MOTION CARRIED DISCUSSION OF PROPOSED AMENDMENT TO CHAPTER 7 Commissioner Nelson asked how much a 1% tax levy increase would be. Deb Skogen said she was not sure but would ask for that information for the next meeting. Commissioner Nelson felt the language adding an additional 2% to the CPI was not enough and would rather the language read up to 5% without the CPI, for three consecutive years, so the City Council could have the tools they needed to help recapture some of the monies lost from the cuts to Local Government Aid (LGA). Commissioner Hoiby said the City should move forward and get over their reliance on LGA, especially in light of the state being 25% short in the next biennium. She said there are some safeguards with the 2 %. Commissioner Jorgenson said LGA was taken away and that was the reason the Springbrook Nature Center tax levy increase was sent to the voters. Commissioner Nelson felt they need to allow the City Council the tools to provide revenue due to the decreases in LGA. He said the City has been frugal, and has been limited by the Charter restrictions. Commissioner Findell said he had the same argument in 2000, that the City Manager and the elected officials should have the right to make decisions best for the City. Commissioner Jorgenson said if they were looking at all of the lost LGA, it could amount to about $7 million and was not sure the City should try to recapture that amount over three years, especially in light of the drop in home values and the average selling price of the homes in the area. She felt if the taxes were raised too high, the City might lose more homeowners unable to pay the taxes. Commissioner Nelson said he did not feel like waiting because the City is broke now and crime rates are up. He agreed there were people with limited incomes, but felt they should feel safe in their own neighborhoods walking down the street. He said right or wrong, the City needs the money now. There was a brief discussion about the housing market; and how home values are being affected because of the amount of foreclosures and short sales in the area. Commissioner Nelson said he was not suggesting recapturing all of the lost LGA, but to provide the ability for the City Council to recapture some of it. He felt the Commission had to step up and make the decision to provide the tools to the Council rather than having the Council take the heat because the City is crumbling around them. Commissioner Reynolds felt 2% was a reasonable increase. She said she realized it might not be enough but said she would guarantee if it was changed it would cause a petition to come forward. Approved April 26, 2010 CHARTER COMMISSION MEETING OF MARCH 22, 2010 PAGE 3 Commissioner Nelson said he did not care, that the City Council should be allowed to decide and if a petition was circulated, so be it. Commissioner Ryan said Commissioner Reynolds mentioned she had done a sampling and wondered who she had sampled. Commissioner Reynolds said she received information from the people who signed the petition and who responded to her web site. They felt 2% was enough. Commissioner Jorgenson said the City Council could decide to put a tax levy increase before the electorate. She did not think they should fix the problem of government for the past 5 to 6 years all at once. She felt they should put forth changes that the community would approve of. Commissioner Hoiby said the residents do not see all of the issues and are not looking at it like the City Council does. Commissioner Scholzen asked where the people could move to where taxes were better. Commissioner Flickinger said they do not understand that taxes are lower here. He said this issue should have been addressed four years ago as it could be seen at the state and federal levels then. He thought every city was in the same condition. He agreed with Commissioner Nelson and felt some how, some way they needed to loosen up. He said his neighborhood was going to heck and that there were foreclosures and rental property owners have cut down the trees. He said he didn't buy a house to look at Section 8 apartments. Commissioner Reynolds felt the Council could bring forth a tax levy increase over the amount to the voters if they needed to. Commissioner Jorgenson asked if they wanted a challenge or to provide some type of compromise. This got into a discussion of mistrust of government and politics. Commissioner Nelson said he was working with nine city councils and was painfully aware of the plights that go on in them, but felt the Commission should give the Council the tools they need. He understood the 2 %, but felt it took two years for the City to acquire the money if they went to the voters rather than increasing it up to 5 %. He felt if this Commission did not want to provide the 5% because they were worried that a petition would be circulated, everyone should sell their homes, as we will have no more safety and security do to cuts. Commissioner Jorgenson didn't think the City could continue to rely on LGA. She would like to see them do something instead of banging heads against citizens that do not want increases, and felt that was the reason for compromise There was a brief discussion about LGA, the certified amounts and the actual amounts received for the past five years. Commissioner Soule felt the commission was not in complete agreement regarding section 7.02.1, but felt they were in agreement on 51% of the votes case on the question. She wondered if it would be of any value to put forth an ordinance with just that section. Commissioner Findell MOVED and Commissioner Jorgenson seconded a motion amending Section 7.02.2.0 to read, "Adopt a resolution after public hearing by an affirmative vote of at least four (4) members of the Council which resolution shall be presented to the electorate at the next regular municipal election as a clear and concise `plain language' ballot question. The additional tax levy shall take effect if approved by 51% of the votes cast on that ballot question." UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON SOULE DECLARED THE MOTION CARRIED Approved April 26, 2010 CHARTER COMMISSION MEETING OF MARCH 22, 2010 PAGE 4 Commissioner Reynolds said she and Commissioner Holm had been discussing the amendment and she felt the original 7.02.3.C. should be left and not deleted, but that after discussing the issue further with Commissioner Holm, who had clarified the whole thing, she thought it might be okay without it. Commissioner Jorgenson felt the Commission should put forth all of the changes rather than send it in pieces. Commissioner Nelson asked Commissioner Reynolds if "this group" understood the city was going downhill and Commissioner Reynolds said they understood that the City was spending money. Commissioner Nelson said some of the $7 million the city has not spent or saved since 2006 is for capital outlay that they still need to purchase, but still don't have money to purchase it with. Commissioner Reynolds said they understood and a discussion ensued about whether they cared or not and about other cities going to the legislature to create a local sales tax. Commissioner Jorgenson said it would be nice to have a toll booth for people who use our bridges, but we can't, but still felt a compromise was better then putting forth a change that didn't have a chance at all. Commissioner Ryan said there was a ricochet affect due to the cuts. She said her area used to be nice but now most of the town houses being sold were turning into rental units bringing other problems into the area. Commissioner Hoiby said she knew people were buying houses here for the lower taxes rather than buying in Minneapolis. Commissioner Jorgenson said she was hearing the same things and did not want to see it get any worse. She said the 2010 census will show that we are aging even more now. There was a brief discussion of TIF districts going back onto the tax rolls; but that they were in different school districts and that the Fridley schools did not receive the tax benefit. DISCUSSION OF CHAPTER 4 - ELECTIONS Commissioner Nelson MOVED and Commissioner Findell seconded a motion removing Chapter 4 from the table. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON SOULE DECLARED THE MOTION CARRIED Deb Skogen reviewed the changes to Chapter 4. She recommended changing the date of the primary from the first Tuesday after the second Monday in September to "on the date established by Minnesota State Law" rather than putting in the specific language of the new law, as it was very possible at some date in the future the Legislature may decide to move the Primary to June, as it has been discussed in the past. In addition, she said the new legislation required the City must canvas on the third calendar day after the Primary and between the third and 10"' calendar day after the general to allow for the Absentee Ballot Board to complete their duties and the preparation of the canvas report. Commissioner Nelson MOVED and Commissioner Jorgenson seconded a motion approving the proposed changes to Chapter 4 by ordinance. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON SOULE DECLARED THE MOTION CARRIED Commissioner Nelson MOVED and Commissioner Jorgenson seconded a motion recommending that the City Council adopt the amendment by ordinance as approved by the Charter Commission pertaining to elections. Approved April 26, 2010 CHARTER COMMISSION MEETING OF MARCH 22, 2010 PAGE 5 UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON SOULE DECLARED THE MOTION CARRIED. DISCUSSION OF FUTURE AGENDA ITEMS Chairperson Soule said they would continue to discuss Chapter 7 and possibly Chapter 5 if the election legislation is complete. Commissioner Nelson provided some information to Deb Skogen on recycling which will be provided to the Commissioners in their April agenda packets. ADJOURNMENT: Commissioner Findell MOVED and Commissioner Jorgenson seconded a motion to adjourn the meeting. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON SOULE DECLARED THE MOTION CARRIED AND THE MEETING WAS ADJOURNED AT 8:35 P.M. Respectfully submitted, Debra A. Skogen, City Clerk/Staff Liaison Carol Hoiby, Secretary Approved April 26, 2010