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HomeMy WebLinkAbout12-13-10-R EN HILLS Approved: January 10, 2011 CITY OF ARDEN HILLS,NIINNESOTA REGULAR CITY COUNCIL MEETING DECEMBER 13,2010 7:00 P.M. -ARDEN HILLS CITY COUNCIL CHAMBERS CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor Stan Harpstead called to order the regular City Council meeting at 7:00 p.m. Present: Mayor Stan Harpstead, Councilmembers Fran Holmes, Brenda Holden, David Grant, and David McClung. Absent: None Also present: City Administrator Patrick Klaers; City Attorney Jerry Filla; Parks and Recreation Manager Michelle Olson; City Planner Meagan Beekman; Director of Finance and Administrative Services Sue Iverson; Public Works Director Terry Maurer; Community Development Director Jill Hutmacher; Civil Engineer Kristine Giga; and Recording Secretary Tina Borg. PLEDGE OF ALLEGIANCE 1. APPROVAL OF AGENDA Councilmember Holden requested items 4C,4E, and 414 be pulled from the Consent Calendar. - Councilmember Holmes requested item 4D be pulled from the Consent Calendar. MOTION: _Councilmember Holden moved and Mayor Harostead seconded a motion to Approve the.Agenda as amended. The motion carried unanimously 5-0 . 2. PUBLIC INQUIRIESA FORMATIONAL PUBLIC Mayor Harpstead opened the Public Inquiries/informational at 7:02 p.m. Mr. Allen Johnson, 4529 Lakeshore Place, Arden Hills, stated he does not agree with his road being closed as part of the Highway 10/County Road 96 project. He asked the City to look into ARDEN HILLS CITY COUNCIL—December 13, 2010 2 2. Public Inquiries/Informational(continued) this and try to keep the road with no changes. He also stated he would like to see a pedestrian crossing at the bridge for County Road 96 going over Highway 35W. Mayor Harpstead closed the Public Inquiries/Informational at 7:06 p.m. 3. APPROVAL OF MINUTES A. February 1,2010, Special City Council Meeting Councilmember Holden requested the minutes be reviewed for consistency in how "Councilmember" is written in all the minutes. Councilmember Holmes stated the Council should not be receiving minutes that are almost a year old. The minutes should be brought to the Council for approval no more than a month after the meeting. She also stated that the minutes for February 1 to June W all contained inaccuracies and typographical errors including the date in the headings. B. March S,2010, City Council Worksession C. March 29, 2010, City Council Worksession Councilmember Holmes stated these minutes did not appear to be complete. The meeting was 45 minutes long and the minutes should be more than a page. D. April 10,2010, Special City Council Meeting E. April 14,2010, Emergency City Council Meeting F. April 19,2010, Special City Council Meeting G. June 14,2010, Closed City Council Meeting H. November 15,2010, City Council Worksession I. November 15,2010, Special City Council Meeting - Councilmember Holden requested on page 1, under the TCAAP Reuse and Public Sale update, the acronym MPCA should be defined as the Minnesota Pollution Control Agency. J. November 15,2010, City Council Worksession Councilmember Holden requested on page 9, the last paragraph, "this map needs" should be replaced with"the district boundaries need". Councilmember Holmes requested the two Worksession minutes for November 15, 2010 should be combined into one. (Agenda Item 3J was a duplicate of 3H. The same meeting was listed twice in error.) MOTION: Councilmember Holden moved and Mayor Harpstead seconded a motion to approve the November 15, 2010, City Council Worksession minutes, and the November 15, 2010, Special City Council Meeting minutes as amended. The motion carried unanimously(5-0). ARDEN HILLS CITY COUNCIL—December 13, 2010 3 3. Approval of Minutes (continued) MOTION: Councilmember Holden moved and Councilmember Grant seconded a motion to .have the February 1, 2010, Special City Council Meeting minutes, the March S 2010 City Council Worksession minutes the March 29 2010 Ci l Council Woxksession minutes, the April 10, 2010, Special City Counci ; Meeting minutes the April 14 2010 Emergency City Council Meetin minutes, the April 19, 2010, Special City Council Meeting minutes, the June 14, 2010, Closed City Council Meeting minutes, brought back to the Council for approval after they have been reviewed by Staff. The motion carried unanimous) 5-0). 4. CONSENT CALENDAR A. Claims and Payroll B. Cancellation of the December 27 Regular City Council Meeting r . l llllJl ppr-e e 2011 Liquer- ne ,.r e Re .is G. P. Approve Or-dinanee 2010 015 Adepting the 2011 Fee Sehedule Mural Contest f f the New C;P Rai T- ;1 G OldSnellifig Avenue ate. lY1l.L1 G.1 ,Jvii{.V�},1V1 �IAV lYVYYY Vl 1\1L11 11LL11 �1 V.,.]llis-',:lli F. 2011 Tree Removal Services G. Resolution 2010-076: Approving an Agency Agreement for the Non-infrastructure Portion of the Safe Routes to School Grant Delinquent Utilities 1. Adopting and Confirming Special Assessment for Abatement of Public Nuisance J. Adoption of the 2011 City Contribution for Employee Benefits K. Resolution 2010-073: Establishing the Service Fee Charge for Curbside Recycling Services L. Eureka Recycling Contract Extension MOTION: Councilmember Grant moved and Councilmember Holden seconded a motion to approve the Consent Calendar as amended and to authorize execution of all necessary documents contained therein. The motion carried unanimously (5- 00, 5. PULLED CONSENT ITEMS 4C. Approve 2011 Liquor License Renewals Councilmember Holden asked why the Holiday Station was not included in the list of businesses requesting to have their liquor license renewed. Director of Finance and Administrative Services Sue Iverson stated Staff had not received all of the Holiday Station's documentation prior to the publication of the Council packets for the ARDEN HILLS CITY COUNCIL—December 13, 2010 4 4.C. Approve 2011 Liquor License Renewals (continued) meeting. Staff received the Certificate of Insurance for the Holiday Station today and this could be added to the list at this time for approval. MOTION: Mayor Harpstead moved and Councilmember Grant seconded a motion to Approve the 2011 Liquor License Renewal Applications as Submitted Including the Holiday Station License for 312 Beer. The motion carried unanimously (5-0). 41). Approve Ordinance 2010-015 Adopting the 2011 Fee Schedule Councilmember Holmes expressed concerns because in the past the City would review the fee schedule item by item. This would allow the Council to look at the increases and discuss these in greater detail. The fee schedule has been on the Consent Calendar for the last two years. She asked if the Council would be interested in having this item reviewed at a worksession. Councilmember Holden stated she had several questions regarding the increases including the fees for recycling bins on page 11, and for the parks and park pavilions where residents are paying more than non-profit residents. Mayor Harpstead stated this item could be brought to a worksession for further review. Councilmember Holmes stated she would like to see this discussed at a worksession because these fees have not been reviewed and discussed by the Council for two years. MOTION: Councilmember Holden moved and Councilmember Grant seconded a motion to Table Ordinance 2010-015; Adopting the 2011 Fee Schedule to the First Worksession in January 2011 for Further Discussion. The motion carried (4- Ayes: Mayor Harpstead, Councilmembers Holmes, Grant, and Holden Nays: Councilmember McClung 4E. Mural Contest for the New CP Rail Trail Crossing on Old Snelling Avenue Parks and Recreation Manager Michelle Olson stated at the November 16, 2010 meeting, the PTRC Chair initiated discussion on the idea of a City sponsored art contest for a mural on the retaining wall for the new pathway under the CP Rail Bridge on Old Snelling Avenue. The committee was receptive to the idea and suggested that this type of contest could produce an artistic mural that could assist in deterring graffiti artists from tagging the area. Specific details regarding potential prizes for the winner were not discussed. Councilmember Holden stated there were no budget impact numbers provided. The City would have to cover the cost of having the mural painted and additional costs for sponsoring the contest and providing prizes. She would like to know what these costs would be before approving the ARDEN HILLS CITY COUNCIL—December 13, 2010 5 4.E. Mural Contest for the New CP Rail Trail Crossing on Old Snelling Avenue (continued) contest. She also asked what the cost would be to the City if this mural was vandalized and it had to be repainted. Parks and Recreation Manager Olson stated the committee had not discussed the budget impacts but this was something that could be brought back to the Council. She also stated that once the mural was painted there would be options the City could take to make it easier to remove graffiti. This is something that the committee can discuss and bring recommendations back to the Council. Councilmember Grant stated the PTRC felt that this area would be one that would be tagged by graffiti artists and if the City had a mural painted it may deter graffiti writers. Other cities have done similar projects and they have been successful in deterring the graffiti. MOTION: Councilmember Holden moved and Councilmember Holmes seconded a motion to Table the Authorization of Staff to Work with the PTRC to Establish Guidelines, Advertise, and Facilitate a Mural Contest for the New CP Rail Trail Crossing on Old Snelling Avenue for Additional Information. The motion carried (4-1). Ayes: Mayor Harpstead, Councilmembers Holmes, Holden, and McClung Nays: Councilmember Grant 4H. Resolution 2010-077: Adopting and Confirming Special Assessments for Delinquent Utilities Councilmember Holden asked why some of the customer names were listed as owner, current owner,resident and renter and if the City bills the address and owner for the water. Director of Finance and Administrative Services Iverson explained the City Ordinance states that renters will be billed. Councilmember Holden asked if it was difficult for the City to recuperate these costs from renters. Director of Finance and Administrative Services Iverson clarified that once the amount is assessed it is attached to the property. Staff is looking at changing the Ordinance so that the City will only bill property owners. MOTION: Councilmember Holden moved and Councilmember Grant seconded a motion to Approve Resolution 2010-077: Adopting and Confirming Annual Special Assessments for Delinquent Utilities. Councilmember Grant stated this is an annual thing and there are always a certain number of delinquent accounts. He clarified that this amount is not tax deductable when it is assessed back to the property. ARDEN HILLS CITY COUNCIL—December 13, 2010 6 4.H. Resolution 2010-077: Adopting and Confirming Special Assessments for Delinquent Utilities (continued) Councilmember Holden asked when the Council would see the Ordinance changes. Director of Finance and Administrative Services Iverson stated Staff would be looking at the whole Ordinance as well as potentially certifying assessments quarterly rather than annually. Council should see the Ordinance changes in the spring of 2011. The motion to approve Resolution 2010-077 was called to a vote. The motion carried unanimous'y (5-0). 6. PUBLIC HEARINGS A. 2011 Pavement Management Program — Public Hearing and Resolution 2010- 080: Ordering Public Improvement and Preparation of Plans and Specifications for the 2011 Pavement Management Program Civil Engineer Kristine Giga stated on November 15, 2010, the City Council received the feasibility report for the 2011 PMP Improvement Project and ordered the public hearing for December 13, 2010. Once the hearing is closed, the next step in the process is for the City Council to order the improvements and preparation of plans and specifications. The roadways to be included in the 2011 PMP Project include: Amble Road, Arden View Court, Arden View Drive, Colleen Court, Dellwood Street, Janet Court, Nursery Hill Court, Nursery Hill Lane, Wyncrest Court, Wyncrest Lane, and Wynridge Drive. Due to the existing conditions of the roadways, the proposed improvements include a bituminous reclamation to all streets. All of the roadways will be repaved to match the existing roadway widths. Existing curb and gutter will remain in place, with the exception of isolated areas that need repairs to replace damaged or sunken curb. The storm drainage system improvements are relatively minor and include maintenance on selected storm sewer manholes and catch basins. At the September 23, 2010, neighborhood meeting, residents adjacent to Karth Lake asked if improvements to the existing storm drainage system could be made in conjunction with the overall project that will help improve the quality of the water entering Karth Lake. During final design, the City will evaluate alternatives to the existing storm sewer system that would result in an improvement to the water quality in this area. The water system improvements include replacing water-main and gate valves within the roadway on Arden View Court and Arden View Drive, as well as removing and replacing selected gate valves and hydrants that are in poor condition. The sanitary sewer system improvements are relatively minor and include maintenance on selected manholes. However, within the Janet Court cul-de-sac, City Staff is proposing that a segment of the existing sanitary sewer pipe be removed and replaced to eliminate a sagging pipe. The estimated total project cost for the improvements is $1,703,700, which includes all overhead costs. The City's portion of the project costs are currently budgeted from the Public Improvement Revolving Fund and Utility Enterprise Funds. Two preliminary assessment rates have been established, one for single-family residences and one for multi-family/townhouse residences. Cost per unit is estimated at this time to be $3,489 for single-family homes and $699 for multi-family/townhouse units. Mayor Harpstead opened the public hearing at 7:36 p.m. ARDEN HILLS CITY COUNCIL,—December 13, 2010 7 6.A. 2011 Pavement Management Program — Public Hearing and Resolution 2010-080: Ordering Public Improvement and Preparation of Plans and Specifications for the 2011 Pavement Management Program (continued) Mr. Maurice Gieske, 1817 Janet Court, Arden Hills, stated Janet Court had initially been included in the PMP project for 2010 and at that time the assessment was estimated at $1,500 for a mill and overlay. At that time the Council had determined it was not necessary to do Janet Court. This year Janet Court is scheduled for reclamation with an estimated assessment of $3,500. He asked why there was such a difference in the project for this particular street. He also asked if the reclamation was necessary for Janet Court or if this street was being included because this was the needs of the other streets in the PMP project. Mr. Lyle Steinfeldt, 4430 Arden View Court, Arden Hills, asked if the City would be making changes to the island located in the neighborhood. He stated something should be done so that buses, garbage trucks and emergency trucks are able to turn around in this area. He stated he likes the island and it makes a nice entry for the neighborhood but it could be made smaller or the roadway could be made larger so that these vehicles could turn around easier. Mr. We Narayan, 1257 Amble Road, Arden Hills, thanked the Council for looking at the needs of the neighborhood and recommending reclamation and not reconstruction for the roadways. Mr. Darrell Thorstcnson, 1250 Wynridge Drive, Arden Hills, asked how long the assessment policy had been used and if there had been other properties in the community assessed in previous years using the same policy. He also asked what the amount assessed would be based on. Councilmember Grant stated the City has had an assessment policy for several years and it was modified in 2004 to change the assessment to a per unit basis rather than per frontage foot. He clarified that the rate of assessment has always been 50% of the road construction costs. Mayor Harpstead stated the amount assessed is based on the actual project costs and at this time the amount is an estimated amount. Once the project has been bid the actual project costs can be - determined. The City has done PMP projects and road assessments almost every year. Mr. Thorstenson asked if everyone was benefiting the same from the rain gardens. He asked for an explanation on how these benefitted him. He also asked how the proposed improvements in other neighborhoods would benefit him and why the amount he was being asked to pay was averaged with the amount of work that-was being done in other neighborhoods. Mayor Harpstead explained the road had been on the schedule for 2010 for a mill and overlay. At that time the Council chose to not include Janet Court in the project. Upon additional inspection this year it was determined that the "alligator" cracks in the road would not be fixed with a mill and overlay project. The judgment from an engineering standpoint was to have Janet Court included in the reclamation project so that the underlayment of the road would be fixed. He clarified that the City follows a schedule of which roads need to be reviewed for pavement projects every year. The City's engineers review these roads and determine the needs of the roads in order to extend the life of the roads. ARDEN HILLS CITY COUNCIL—December 13, 2010 8 6,4, 2011 Pavement Management Program — Public Hearing and Resolution 2010-080: Ordering Public Improvement and Preparation of Plans and Specifications for the 2011 Pavement Management Program (continued) Ms. Kathy Johnson, 1255 Nursery Hill Lane, Arden Hills, thanked the City for listening to residents concerning the water quality of Karth Lake. Mr. Jim Paulet, 1285 Wyncrest Court, Arden Hills, asked questioned the process for assessments. He also asked if a mill and overlay had been considered for Wyncrest Court rather than doing a reclamation. He asked if this road was scheduled for reclamation simply because other roads in the area were scheduled for reclamation. Mayor Harpstcad closed the public hearing at 7:48 p.m. Mayor Harpstead asked Staff to explain the proposed changes in the project on Janet Court from 2010 to 2011. Civil Engineer Giga stated Janet Court was built in 1977 and there had been a seal coat put on in 2001. The road had been scheduled for a mill and overlay in 2010 but upon further inspection of the road and the cracks in the road Staff has determined that a mill and overlay would not benefit this road. The types of cracks in the road are allowing water into the sub-grade. A mill and overlay would crack within a short amount of time and further deteriorate. Best practices shows that a road should have a mill and overlay 15-20 years after construction and this was not done on Janet Court. Mayor Harpstead asked Civil Engineer Giga about the island in the Arden View Court neighborhood and what the City would do in this neighborhood. Civil Engineer Giga stated the City had heard froth the residents of Arden View Court for several years regarding the difficulty buses and large vehicles had turning around. Staff will be looking at this island and alternatives to this area including removing the island or making the island smaller. - These modifications will be included in the final design. Public Works Director Terry Maurer clarified there is an open house scheduled in January and Staff can talk with the residents in this area to determine if a smaller island or removal of the island would be preferred. From a design standpoint the inclusion of the island does not need to be determined at this time. Mayor Harpstcad asked if a mill and overlay had been considered for Wyncrest Court. Civil Engineer Giga stated a mill and overlay project had been considered for this neighborhood but the amount of"alligator" or deep cracking and the amount of distress on the roadway did not make a mill and overlay project cost effective. Reclamation of the streets in this neighborhood would be the most efficient and cost effective means of repairing the roadways. ARDEN HILLS CITY COUNCIL—December 13, 2010 9 6.A. 2011 Pavement Management Program — Public Hearing and Resolution 2010-080: Ordering Public Improvement and Preparation of Plans and Specifications for the 2011 Pavement Management Program (continued) Councilmember Holmes asked what Staff was doing to improve the water quality for Karth Lake. Civil Engineer Giga stated based on neighborhood input, Staff has looked at what they can do to improve the water quality in Karth Lake. Staff will look into this more during the final design process to determine what the City can do. MOTION: Mayor Harpstead moved and Councilmember Holden seconded a motion to Adopt Resolution 2010-080: Ordering Public Improvement and Preparation of Plans and Specifications for the 2011 Pavement Management Pro ram. Mayor Harpstead clarified this was the first step outlined in the process and the final cost determination would not be made until after bids had been received, which is expected to be in May 2011. Councilmember Holden asked if the estimates were based on last year's costs. Civil Engineer Giga clarified the estimates were based on costs for projects from the last couple of years and the costs from surrounding communities for similar projects. Staff also included a percentage increase but the estimates are considered to be conservative. The motion to adopt Resolution 2010-080 was called to a vote. The motion carried unanimously (5-0). B. Public Hearing Proposed TIF District—Presbyterian Homes Redevelopment Mayor Harpstead stated that at an earlier worksession the Council had determined there would be no action on this item at this meeting but the City would proceed with the public hearing. Ms. Stacie Kvilvang, Ehlers & Associates, stated Presbyterian Homes has approached the City about its proposed redevelopment of portions of their facilities on their existing site. Presbyterian Homes is inquiring about the possibility of the City off-setting some of the cost associated with this redevelopment by providing Tax Increment Financing (TIF). Presbyterian Homes has completed the required applications and paid the required fees and escrow deposits. If this request is granted action would be required to modify the development program for Development District No. 1 and establish Tax Increment Financing District No. 4 within Development District No. 1 and adopt the Tax Increment Financing Plan. As part of the process, the City Council will also approve the Development Contract between the City and Presbyterian Homes. TIF District 4 is proposed to be a renewal and renovation district with a term of 16 years (15 years after the first increment). Presbyterian Homes would like to receive the first increment in 2014. She clarified that the proposed TIF Budget was a maximum amount. To provide the City flexibility to capitalize 20% of the funds from the District for administrative and/or pooling for other projects, the City is being asked to consider the approval of an interfund loan resolution. ARDEN HILLS CITY COUNCIL—December 13, 2010 10 6.B. Public Hearing Proposed TIF District—Presbyterian Homes Redevelopment(continued) Councilmember Holmes asked if the interest amount of$932,922 was based on the interest being at 6.2%. Ms. Kvilvang stated with regards to the TIF plan and the TIF budget this is a separate interest calculation. The 6.25% rate is used when negotiating with the developer on the development agreement. For purposes of the budget, a 3% rate is used. There is a cap on what can be used for hard construction costs so a lower interest rate or value rate is used. This is to utilize the budget and maximize the City's flexibility. What dictates what the City will actually end up paying or providing is in the development agreement. Also, in order to provide a maximum budget, a 3% inflation rate is provided for. A higher percentage over time is used and this allows flexibility so that the City will not need to continue to make amendments to the agreement. She clarified that on the TIF plan they have inflated the value of the development over time. Councilmember Holmes asked what this interest is based on. Ms. Kvilvang stated this is interest payments the City is making on any debt that the City may take on. For the TIF plan purposes the interest is calculated at 3%. The lower amount is used here because there are constraints within the TIF laws for capital expenditures. The interest number can change but there would not need to be amendments or changes to the budget being proposed. This will provide flexibility for the City so that a public hearing process will not have to be followed for an amendment to the budget in the future. Mayor Harpstead opened the public hearing at 8:15 p.m. Mayor Harpstead closed the public hearing at 8:16 p.m. Councilmember Holmes stated she is struggling to understand the budget. She asked if this represented all the budgeted costs for Presbyterian Homes to build this project. Ms. Kvilvang stated the overall development project costs are estimated at about $49,000,000. - The budget included in the TIF Plan is the maximum budget for the tax increment that would be generated over the term of the district. The TIF Plan budget is what is available to provide some assistance for the higher costs of redevelopment. She stated the amount of increment that is generated over the term would be about $3,700,000. Mayor Harpstead stated the Council had agreed to continue this item to the December 20, 2010 meeting. C. Resolution 2010-070: Ordering Abatement of Public Nuisance at 1926 Stowe Avenue Parks and Recreation Manager Olson stated the City received a complaint regarding a potentially diseased tree at 1926 Stowe Avenue. The City Forester inspected the property and determined that this tree had been previously marked in 2008 for removal for Oak Wilt Disease. Staff determined that the owner did not respond to City notices during that time to remove this tree. The tree is now completely dead and poses eminent danger to life or property to adjoining properties. This type of violation requires the City to use the General Abatement Procedure ............. .. .... ARDEN HILLS CITY COUNCIL—December 13, 2010 11 6.C. Resolution 2010-070: Ordering Abatement of Public Nuisance at 1926 Stowe Avenue (continued) process in Section 602.05 of the City Code. A written violation letter was sent by certified mail on November 8, 2010, giving the owner 10 days to correct the situation. The certified letter was returned to the City unopened. The City sent a second letter by regular and certified mail on November 17, 2010 and posted a letter on the front door of the property. City Staff also attempted to contact the property owner by phone but found that the listed phone number was disconnected. The property owner has not contacted the City to resolve the situation. The house does appear to be occupied. An abatement order allows the City to hire a contractor to complete the work on the property and charge the cost back to the property owner. The City has received a quote for the work from the City's contracted tree vendor, Precision Landscape and Tree for the amount of $1,998.56 to complete the abatement. The property owner was notified of the hearing by regular and certified mail on December 1, 2010 and Staff posted a notification on the front door. There has been no response. Mayor Harpstead opened the public hearing at 8:23 p.m. Mayor Harpstead closed the public hearing at 8:24 p.m. Councilmember Holmes asked if the property appeared to be occupied. Parks and Recreation Manager Olson stated the house appeared to be occupied. There were Christmas lights up and a dog barking inside the home. The notice posted on the property had been removed as well. Councilmember Holmes clarified the tree was dead. Parks and Recreation Manager Olson indicated this was correct. MOTION: Mayor Harpstead moved and Councilmember Holmes seconded a motion to - _Approve Resolution 2010-070: Ordering Abatement at 1926 Stowe Avenue, for Dead, Diseased, or Fallen Trees or Tree Branches Not in Compliance with City Regulations. The motion carried unanimously (5-0). 7. NEW BUSINESS A. Adoption of the Final 2011 Budget and Tax Levy Director of Finance and Administrative Service Iverson stated at the June 21, 2010 worksession, the City Council provided Staff with guidelines to initiate work and prepare a Preliminary 2011 Budget. Based on these guidelines, Staff presented a draft preliminary budget to the Council at the August 16, 2010 worksession and a subsequent worksession on November 15, 2010. The current version of the budget reflects the changes discussed at those worksessions. On September 13, 2010, the Council adopted a preliminary Tax Levy in the amount of$3,088,964. The County has received the certification notice and proposed tax statements were sent out to all property owners. On December 6, 2010, the City held the Truth-in-Taxation hearing during a ARDEN HILLS CITY COUNCIL—December 13, 2010 12 7.A. Adoption of the Final 2011 Budget and Tax Levy (continued) Special City Council meeting. The 2011 Proposed Budget has projected revenues of$10,218,392 and projected expenditures of $13,060,056. This budget includes expenditures and revenues across all funds. The General Fund budget is proposed at revenues of $3,897,217 and expenditures of $3,917,217. The only changes in the proposed budget that came out of the November worksession are the reduction of$28,000 in expenditures and the use of$20,000 of reserves as directed by the City Council. This reduces the Proposed Property Tax Levy from $3,088,964 to $3,040,964 resulting in a 0.8% increase over the 2010 Property Tax Levy. There were no changes made to the proposed Capital Improvement Plan (CIP) presented at the November worksession. Mayor Harpstead stated that the budget is not balanced due to the projected revenue and projected expenditures in the Capital Improvement Plan Fund and is a result of the pavement management projects. These funds are received through special assessments and some of these funds are used for the capital improvement of the infrastructure of the City and the public utilities area. Councilmember McClung asked if this budget includes cost of living increases for Staff. Director of Finance and Administrative Service Iverson stated the contingency includes a 2% cost of living increase as directed by the Council. The City has not finished union negotiations and is unsure of the results of these negotiations at this time. The actual budget contains a 0% increase and any increases the Council may choose to do that would affect the General Fund are in the contingency funds. City Administrator Klaers clarified the contingency reserve is $20,211 and this is included in the levy amount. MOTION: Councilmember Holden moved and Mayor Harpstead seconded a motion to Approve the 2011-2015 Capital Improvement Plan (CIP) as presented...._ _. esented. The - motion carried unanimously(5-0). MOTION: Councilmember Holden moved and Mayor Harpstead seconded a motion to Adopt Resolution 2010-078: A Resolution Adopting the Proposed 2011 Budge in the Amount of$13,060,056. Councilmember Holden stated the City's budget has been really looked at by the Council and the result is less than 1% increase. She stated the City's costs could be lowered if the costs of public safety services would not continue to increase. Councilmember Holmes did not like the use of the City's reserves. She also stated she would like to look at the costs associated with public safety services to determine if there were additional cuts the City could make so that the City's reserve funds would not have to be used. Councilmember Grant stated the City has made substantial progress in the levy but the City cannot continue to operate under the cost of inflation. The Council has been very sensitive to the economic times and he would not propose to go higher but he also could not support going lower. ARDEN HILLS CITY COUNCIL—December 13, 2010 13 7.A. Adoption of the Final 2011 Budget and Tax Levy (continued) Mayor Harpstead stated taking money from the reserve every year is not a good trend and the City should keep this in mind for the future. The amount being proposed is modest and the City can tolerate this amount being removed from the reserve. He clarified he would support the proposed budget. Councilmember McClung stated he believed there was room for the City to make additional cuts. The motion to approve Resolution 2010-078 was called to a vote. The motion carried unanimously MOTION: _Mayor Harpstead moved and Councilmember Holden seconded a motion to Adopt Resolution 2010-079: A Resolution Setting the Final Lew for Taxes Payable in 2011 in the Amount of$3,040,964. MOTION: Councilmember McClung moved and Councilmember Grant seconded a motion to Amend the Final Levy for Taxes Payable in 2011 to the Amount of $3,016,465 (the amount levied in 2010). Councilmember Grant asked Councilmember McClung where he would propose the cuts come from. Councilmember McClung suggested the cuts could come from the contingency included in the budget and take the difference from the reserve funds. He stated the City could freeze all salaries for the next year. He would support the step raises based on performance but would not support any cost of living increases this year. Councilmember Grant stated the amount of the contingency was based in part on the union - contract negotiations. He clarified that if this money was not in the budget then the City would not have flexibility when negotiating this contract. Councilmember McClung stated it is possible to have a 0% increase in year 1 and negotiate a slightly larger increase in year 2 or year 3. Councilmember Holden stated Arden Hills pays an average salary compared to surrounding cities. Surrounding cities are providing employees increases and if Arden Hills is not able to compete with this then the City will loose valuable employees in the future. She stated she would like to see Arden Hills as a destination City for qualified employees rather than a City for training qualified employees to work in other cities. Mayor Harpstead stated he would vote against the motion to amend as well. The cost impact to the City from the public safety increases exceeds the amount of the increase for the levy. The City is already not doing things within the City that have been done in the past in an effort to cut costs. The community is well managed and appropriately budgeted at this time. ARDEN HILLS CITY COUNCIL—December 13, 2010 14 7.A. Adoption of the Final 2011 Budget and Tax Levy (continued) Councilmember Grant stated the City could not assume that a 0% increase will be acceptable in the contract negotiations and the City should have these funds available to provide the flexibility needed to negotiate a favorable contract. The motion to amend Resolution 2010-079 was called to a vote. The motion failed (t-4). Ayes: Councilmember McClung Nays: Mayor Harpstead, Councilmembers Holmes, Grant, and Holden The motion to approve Resolution 2010-079 was called to a vote. The motion carried (4-1). Ayes: Mayor Harpstead, Councilmembers Holmes, Grant, and Holden Nays: Councilmember McClung E. US 10/Highway 96 Grade Separation Project — Environmental Assessment Review Public Works Director Maurer stated Ramsey County and Mn/DOT are developing plans to reconstruct the intersection of County Highway 96 (CSAH 96) and US Highway 10 (TH10). As part of this process, the preparation of an Environmental Assessment (EA) is required. The EA has been completed and distributed to all interested parties. The 30-day comment period began on November 15, 2010, and ends on December 15, 2010. Bolton & Menk, Inc. completed a review of the EA. On March 31, 2008, the City adopted a Position Paper, which contained several issues and concerns with the 10/96 project. On September 14, 2009, the City Council adopted - Resolution 2009-021 in support of a noise wall to be constructed on Arden Manor as part of this project. Residents living in other areas near this intersection have also expressed concerns about noise during the preliminary design process. The noise analysis completed for the EA indicated that a noise wall would reduce noise levels in the southwest quadrant of the intersection, but was not found to be cost effective. The estimated cost for a noise wall 2,900 feet in length along Old Highway 10 is $900,000. If the County agreed to contribute up to $3,250 per decibel reduction per residence, the City contribution is estimated at $300,000. A resident on Lakeshore Place provided some comments directly to City Staff during the EA comment period. As part of the project, Lakeshore Place will be reconfigured, and will be accessible to vehicular traffic only from the southern entrance. The concern expressed was the configuration of a turnaround at the north end, and how this configuration will accommodate City maintenance and emergency vehicles. City Staff will continue to work with the County during final design to ensure adequate access for all vehicles along Lakeshore Place. ........ .... ARDEN HILLS CITY COUNCIL--December 13, 2010 15 7.B, US 10/Highway 96 Grade Separation Project Environmental Assessment Review (continued) Mayor Harpstead stated there are some additional storm water ponds in the project. He asked if these were required. Public Works Director Maurer clarified that the number of storm water ponds is being increased and that the existing storm water ponds will be integrated into the layout. Mayor Harpstead stated there is no allowance for pedestrian movement from Round Lake Road West toward 35W. A gentleman who spoke earlier suggested this is something that should be looked into. Public Works Director Maurer stated it was his understanding that the County is building a concrete roadway to Round Lake Road and from that intersection west it will be a bituminous surface because there is a Mn/DOT project to replace the interchange at 35W and they believe they will need this much space to come back to the Round Lake Road intersection. Mayor Harpstead stated the ramps going north along TH 10 are described as temporary. He asked how temporary these would be. Public Works Director Maurer explained the ramps would be removed if a full access interchange for TCAAP were developed in the future, otherwise the ramps would remain as they are configured in the plan. There is no difference in the materials or methods used to construct the ramps. Mayor Harpstead asked if there would still be access for the residents and businesses on southbound TH10. Public Works Director Maurer stated there are curb cuts and access for these businesses and residents. He stated he would verify if this road was a two way street. Mayor Harpstead noted the light interface between southbound THIO and northbound Old Highway 10 should be looked into. A barrier of some kind would break up the confusion of headlights in this area. He also stated that there were no pedestrian movements along the roadway of Old Highway 10. There should be some connection between north and south along this route. It would be appealing, as long as they are in the area building and constructing, that they accommodate these movements. Public Works Director Maurer stated the City could ask for pedestrian movement compatibility at this time. The project does not include this. ARDEN HILLS CITY COUNCIL—December 13, 2010 16 7.B. US 10/Highway 96 Grade Separation Project — Environmental Assessment Review (continued) Councilmember Hoiden stated the sound walls along Interstate 35W are positioned in the backyards of the residents. She asked the Council if the positioning of these walls could be negotiated to the City's advantage. Public Works Director Maurer stated the City would get another chance to review these plans in the final design before municipal consent is requested. At this time the City is putting together a comment letter in response to the EA report. Councilmember Holden stated the City had talked initially that some of the additional fill could be used to construct berms. She asked if there would be enough right-of-way available to construct land berms. Public Works Director Maurer stated he was not sure there is enough right-of-way to build an earthen berm that would be effective for sound mitigation. Councilmember Grant stated the section between west Round Lake Road and the entrance to the bridge on Interstate 35W/County Road 96 and the bridge over Interstate 35W would be corrected by the County in the future. The City should request a bituminous trail that goes across this area. Public Works Director Maurer stated Mn/DOT has told the City that a project for that interchange has been programmed for 2014. The City has requested a listing of projects for the area in writing from Mn/DOT. Requesting a bituminous trail would not be unreasonable. Councilmember Grant suggested areas there are areas within the City where the fill generated from the project could be utilized; the City should request that fill. Possible projects include the area near McDonald's and County Road E and potentially raising the level of Valentine Park. Councilmember McClung stated access for northbound TH10 to eastbound County Road 96 and - access for County Road 96 to southbound TH10 are areas that should be discussed in greater detail and the City should have these access points. The City should also address the sound wall requests by the residents in the southwest quadrant. Public Works Director Maurer clarified Mr. Jim Tolaas had not stated that these access ramps were not needed but rather they were not cost effective based on the traffic counts. Councilmember Holden stated the County Commissioners have said that these ramps could be built later once TCAAP is developed. The City should push to have these access points constructed at this time. Public Works Director Maurer summarized the additions the Council would like: Is traffic one- way or two-way on the exit ramp from Highway 10; the possibility of a barrier along Highway 10 and Old Highway 10 to resolve the headlight conflict; pedestrian facilities on Old Highway 10; the construction of a bituminous trail all the way over to the 135W bridge including the temporary portion of County Road 96; the movement of northbound Highway 10 to eastbound County Road ARDEN HILLS CITY COUNCIL—December 13, 2010 17 T R US 10/Highway 96 Grade Separation Project — Environmental Assessment Review (continued) 96; and the construction of noise walls in the southwest quadrant. He clarified that the discussions regarding the dirt and fill generated from the project will be discussed with the County outside of this document. MOTION: Councilmember McClung moved and Councilmembcr Holden seconded a motion to Authorize Staff to Submit Comments on the US 10/Hiahway 96 Environmental Assessment to Ramsey County on Behalf of the City of Arden Hills Including the Comments of the City Council as Summarized by Public Works Director Maurer. The motion carried unanimously(5-0). C. Administrative Hearing for Arden Hills Tobacco Compliance Violation City Administrator Klaers stated on November 24, 2010, the Ramsey County Sheriff's Department conducted tobacco compliance checks in Arden Hills. Arden Hills Tobacco did not pass this compliance check because one of their employees sold tobacco products to a minor. Subsequent to that incident, the Ramsey County Sheriff's Department received a complaint that another violation had occurred. According to City Code, prior to the imposition of a fine for a tobacco sales violation, a hearing must be held before the City Council unless the license holder elects to waive his right to a public hearing. The owner of Arden Hills Tobacco was notified of the fine and hearing via certified mail on December 6, 2010 and asked to respond by December 9, 2010. The City has received no response. Arden Hills Tobacco passed the December 6, 2010, compliance re-check conducted by the Ramsey County Sheriff. This is an administrative hearing being held in compliance with City Code. Per City Code and the City Attorney's recommendation, the fine for two violations is proposed to be imposed. City Attorney Jerry Filla clarified a hearing is an opportunity for the licensee to respond to the citation and fines being proposed. Mr. Ibrahim Aqel, Owner of Arden Hills Tobacco, stated that he has taken the recommended measures to ensure that a tobacco sale to minors does not occur. He provides the proper training to his employees but he cannot be with them all the time. He does not dispute the citation on November 24 but does dispute the sale that allegedly occurred on November 27. The store passed a violation check on December 6 and he stated that the sales clerk would not have had a tobacco sale to a minor so close to the first citation. Mayor Harpstead asked if there was surveillance tape for the incident on November 27. The time documented for this occurrence was noted at 5:00 p.m. Mr. Agel stated he had not received a copy of the police report for the incident on November 27 so he did not have surveillance tape of this available. City Attorney Filla pointed out there was sufficient legal evidence to consider two separate violations had occurred and two fines could be imposed. There is no reason to doubt the minor or the minor's parents in the second incident. ARDEN HILLS CITY COUNCIL—December 13, 2010 18 7.C. Administrative Hearing for Arden Hills Tobacco Compliance Violation (continued) MOTION: Mayor Harpstead moved and Councilmember Holden seconded a motion Pursuant to the Administrative Hearing Held on December 13,2010, The City Holds the Arden Hills Tobacco Establishment in Violation of Two Events of Sales to Minors. Councilmember Grant the City is within its legal right to issue a fine for two occurrences but this establishment had two violations within three days and did not have adequate time in between violations to address the problem of sales to minors with staff and resolve the problem. He asked when the licensee was notified about the first violation and the second violation. Mayor Harpstead stated there was three days in between the violations and this would be adequate time for the owner to resolve the problem with staff. Mayor Harpstead noted that the Council is not judging on the communication within the establishment but on the violations of the City Code that occurred. Mr. Aqcl stated the clerk would not have made a sale to a minor so close to the "sting" operation. The clerk would have been more vigilant because he had just received a citation. He stated the sale on the 24th did occur but there is no reason to believe that the sale occurred on the 27`h because it was not under the supervision of the police. Councilmember Holden stated the City Council could not make assumptions about the individuals involved. The City Council will base its decision on the facts that are being presented at this time. Mayor Harpstead stated the licensee had an opportunity to look into the reported incident on November 27 but did not. The Council should make their decision based on the information being presented at this time. Councilmember Holmes asked if the clerk who made the sale on November 24 was still employed at Arden Hills Tobacco. She also asked when Mr. Aqel had found out about the occurrences. Mr. Aqel stated the clerk was still employed at Arden Hills Tobacco. He also stated that he had not become aware of the whole situation until after December 6. Mayor Harpstead stated the data in front of the Council supports the motion that two violations have occurred. The City Code does not specify what an establishment should do to reprimand employees. Councilmember Grant agreed that two violations have occurred and the owner has the responsibility to know what is happening in his store. Councilmember Holmes stated she was not comfortable with a fine for the second violation at this time and she would not support the motion. ARDEN HILLS CITY COUNCIL—December 13, 2010 19 7.C. Administrative Hearing for Arden Hills Tobacco Compliance Violation (continued) The motion was called to a vote. The motion carried 4-1 Ayes: Mayor Harpstead,Councilmembers Grant,Holden and McClung Nays: Councilmember Holmes D. 2011 Tobacco License Renewals Mayor Harpstead stated Arden Hills Shell, Arden Hills Tobacco, Big Ten Supper Club, Blue Fox Inn, Cub Foods, and the Holiday Station are requesting renewal of their City tobacco licenses for 2011. The City has received the required Certificates of Insurance, applications and fees, the background checks have been completed, and the Fire Inspector Reports have been completed for each location. MOTION: Major Harpstead moved and Councilmember Holden seconded a motion to Approve the 2011 Tobacco License Renewal Applications as Submitted and Listed. The motion carried unanimously). 8. UNFINISHED BUSINESS None. 9. COUNCIL COMMENTS AND STAFF UPDATES Councilmember Holden asked how the training on 3M lining mains that Public Works Director Maurer attended differed from what is happening now with the lining. City Administrator Klaers stated this training was for water mains. Mayor Harpstead thanked the City and Staff for their help and time over the last four years. ADJOURN MOTION: Councilmember McClunu moved and Councilmember Grant seconded a motion to adiourn. The motion carried unanimously (5-0). Mayor Harpstead adjourned the Regular City Council Meeting to a Worksession at 9:50 p.m. 1 Patrick Klaers David Grant City Administrator Mayor