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HomeMy WebLinkAbout11-21-11-WS lt ,- VEEN HILLS Approved: January 9, 2012 CITY OF ARDEN HILLS,MINNESOTA CITY COUNCIL WORK SESSION MEETING NOVEMBER 21,2011 5:00 P.M. -ARDEN HILLS CITY COUNCIL CHAMBERS CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor David Grant called to order the City Council Work Session meeting at 5:05 p.m. Present: Mayor David Grant; Councilmembers Brenda Holden, Fran Holmes, and Ed Werner. Absent: Nick Tamble (excused) Also present: City Administrator Patrick Klaers; Public Works Director Terry Maurer; Community Development Director Jill Hutmacher; City Planner Meagan Beekman; Director of Finance and Administrative Services Sue Iverson; Parks and Recreation Manager Michelle Olson; Finance Analyst Kyle Howard; and Deputy Clerk Rebecca Brazys. 1. APPROVAL OF AGENDA The Council accepted the agenda as presented. 2. AGENDA ITEMS A. Rob Davidson—Update on Holiday Inn Rob Davidson, owner of the Holiday Inn site, stated that Northwestern College decided to not renew their lease for student housing at this location as of May 2011. Since that time, a senior housing developer expressed interest in the property but was unable to secure financing. He has now been contacted by the Salvation Army who would like to use the building as transitional housing. There would be 130 men housed in the building. The men would learn job skills at this site. He explained this proposed use would employ 80 to 90 people as a part of this program with the ultimate goal that the men would stay in the facility six to nine months until they transition into full-time jobs. The Salvation Army is a high-profile, long-standing, non-profit organization across the world. They have already determined that the facility would fit their needs. He is before the Council to get feedback on this use and to see if the Council would allow the Salvation Army to make a presentation regarding their proposal. ARDEN HILLS CITY COUNCIL WORK SESSION—NOVEMBER 21, 2011 2 City Planner Beekman explained that this use would require that the B2 zoning district be amended to permit this use. This was necessary for the Northwestern College use as well as the senior housing proposal previously proposed for this site. She stated a zoning code amendment would be required to allow the use through a Planned Unit Development (PUD). The Zoning Code amendment could be processed concurrently with the PUD approval. Mayor Grant commented that he does not believe this is an acceptable use in the B2 zone. Councilmember Holmes asked for more clarification on the use of this property. Mr. Davidson responded that it is his understanding that the participants in this program would be coming out of a correctional facility and they would stay in this transitional housing to be reintegrated into the community and retrained so that they can secure employment and leave within six to nine months. Mayor Grant questioned if this would be a secured facility. Mr. Davidson stated this is not a secured facility but there will be a full-time staff. Also, this is a voluntary program that has been very successful. Councilmember Holden arrived at 5:13 p.m. Councilmember Werner asked if there are any other facilities in the Metro area. Mr. Davidson stated there has been a facility in downtown Minneapolis for many years. Councilmember Holden commented that this use doesn't really fit into the B2 plan. City Planner Beekman stated that the Guiding Plan for the B2 district does not address this use. Councilmember Werner commented that he was OK with the senior housing proposal but he believes there will be a certain amount of resistance to this use. He stated he doesn't think it is a good fit. Councilmember Holmes stated that even though this isn't the type of use the City planned for this area, but she would be willing to listen to the Salvation Army's presentation. Councilmember Holden stated that she would be willing to listen to a 15-minute presentation, but agreed that it isn't a good fit for the B2 district. She stated that she would have trouble approving a zoning code change. Mayor Grant stated he would be willing to listen to the Salvation Army but is not supportive of this use in the B2 zone. He added that the Northwestern College use worked out well for this area. ARDEN HILLS CITY COUNCIL WORK SESSION—NOVEMBER 21, 2011 3 B. TCAAP/ Stadium Update City Administrator Klaers stated there are a number of issues to discuss; the Resolution of Support, the Legislative Talking Points, and the upcoming Senate hearing on November 29 as well as the recently scheduled Ramsey County Legislative meeting on November 28. He then reviewed the talking points and explained that staff added wording to make the investment of the Vikings more clear. The talking points also refer to the transportation system investments that will be made and the clean-up of the property. Councilmember Holden suggested the word "currently" be added to the first bullet point: "The stadium proposal is currently the best opportunity..." She explained that she has heard comments that the $420 million investment by the Vikings is actually coming from the Vikings and. the National Football League. Councilmember Holmes suggested that the talking points be revised to include the specific language about the Viking's investment as stated in the letter from the Vikings owners to the Governor. She also suggested a wording change in the second bullet. City Administrator Klaers introduced the City's lobbyist for the stadium project, Todd Hill of Hill Capitol Strategies. Discussion continued on the talking points and the Council directed staff to revise the talking points to include a few requested changes. The Council then reviewed the proposed Resolution of Support. Revisions were suggested and noted by staff. Council directed staff to add the revised Resolution to the Council's November 28th meeting. Councilmember Holden suggested the Council discuss Item F at this time since there were audience members present regarding this issue. F. 2012 Fee Schedule Parks and Recreation Manager Olson explained that she received a phone call from a Bethel University student, Wyatt See, requesting field space for the spring. At that time, she mentioned that the Council was considering revising their fee schedule to start charging a fee for adult field usage. Mr. See suggested the City work with Bethel to establish a fee to be paid by the administration rather than by the individual clubs themselves. Councilmember Holden asked why intramural and club teams aren't using Bethel fields. Parks and Recreation Manager Olson responded that it is her understanding that Bethel does not allow the club and intramural teams to use their fields. Councilmember Holden suggested that the Council accept the 2012 fee schedule as proposed and the club teams can work with Bethel to address the field fees. ARDEN HILLS CITY COUNCIL WORK SESSION—NOVEMBER 21, 2011 4 Mr. See explained that the intramural and club teams aren't allowed to use the Bethel fields because Bethel administration is concerned that would appear to be favoring one group of students over another and there would not be sufficient field time to support the intramural as well as the club teams. Council consensus was to direct staff to place the 2012 fee schedule on the Council's next regular meeting agenda. H. Water Meter Minimum Discussion Director of Finance and Administrative Services Sue Iverson stated this is in regard to the Council's previous direction to reduce the minimum from 10,000 to 5,000 gallons and keep the water meter charge the same. She determined the best way to maintain the water conservation rate was to increase the over 35,000 gallon fee by 40%. Lowering the minimum to 5,000 gallons increases everyone else's water bill $16.40 to cover that 5,000 gallon difference. After speaking with Councilmember Holden today, she prepared a different rate sheet and presented it to Council. This rate sheet demonstrates the difference between a 5,000 gallon user, a 10,000 gallon user, a 16,000 gallon user, a 25,000 gallon user and a 50,000 gallon user. Councilmember Holden explained that she would not approve dropping the minimum down to 5,000 gallons. She suggested that the City use the same rate system it has now, but if someone is using less than 5,000 gallons that they be given a credit. Councilmember Holmes stated that she would need more time to study the rates presented. She then asked why we can't simply charge everyone a fixed fee for their actual usage without a minimum. Director Iverson stated that could be done but it would be more complex and take time to figure out. Mayor Grant stated there were a number of people who complained about the water rate structure. Director Iverson pointed out that there are a lot of snowbirds in Arden Hills and the fixed cost covers the expense to be connected to City water. She then recommended that the Council adopt the water rates as presented and she will then revise the rate structure within the upcoming year, possibly by June. Councilmember Holden stated that she doesn't want to wait six months to adjust the schedule and questioned if the Council could at least add a credit for those who use under 5,000 gallons. She stated that she would like to see something done by March 1, 2012. Director Iverson explained that in order to give a credit, the utility billing clerk would have to manually go into those accounts which would delay the billing cycle. ARDEN HILLS CITY COUNCIL WORK SESSION—NOVEMBER 21, 2011 5 Councilmember Holmes stated that she does not agree with giving a refund. She questioned if an outside company could be hired to do the rate study as the Council would like to see it done before June. City Administrator Klaers recommended the Council approve the 2012 Fee Schedule as presented at their next regular meeting, and staff will give the Council a timetable for the completion of the rate study. C. Proposed Final Budget and Tax Levy Director Iverson stated there are no changes in the budget since the Council discussed this topic at a previous work session, except an adjustment for a 3.6 percent increase in medical premiums and a 3.5 percent dental increase. Staff is proposing the $17.21 per month increase be covered by dividend reserves. It does not impact the budget. She then stated that staff had originally proposed a zero percent increase and Council directed staff to put in a 3.0 percent levy increase. Director Iverson explained that the TCAAP Fund has been reclassified into a department in the General Fund. This will eliminate the need for transfers from the General Fund to cover TCAAP activity. The GASB 54 legislation would not have allowed the City to continue using a Special Revenue Fund for TCAAP expenses. Director Iverson stated that staff will be asking Council to eliminate the TCAAP Special Revenue Fund and make it part of the General Fund. Staff is proposing to establish Internal Service Funds for technology, risk management, central garage equipment, and engineering. The Internal Service Funds will function the same way that Enterprise Funds work except that they will be utilized by internal customers, such as various City departments, and will also allow for charging back to individual departments. Establishing these funds has no effect on our budget because the City is already incurring these costs. Director Iverson then pointed out that the 3.0 percent levy will not allow the City to build reserves in their Capital funds. She added that the discussion at this time is whether or not the Council wants to leave the levy at a 3.0 percent increase. Councilmember Holden stated that she is not in favor of the 3.0 levy increase. Councilmember Holmes asked what will happen if the Council chooses not to go with the 3.0 percent levy. Director Iverson explained that she believes the Council wanted the 3.0 percent because they were concerned about unknown or unanticipated expenses such as Other Professional Services for TCAAP. Councilmember Holmes asked if we are continuing to deplete our reserve funds. Director Iverson responded that as of this point, the City has not used any of its reserve funds yet this year. ARDEN HILLS CITY COUNCIL WORK SESSION—NOVEMBER 21, 2011 6 Councilmember Holmes asked if any of the City programs would. be jeopardized by a levy increase lower than 3.0 percent. Director Iverson responded that it would depend on how much less the Council approves. She added that she thinks the City would still be alright with a 2.0 percent levy increase. Councilmember Holmes questioned whether the increases reflected on the tax impacts are based on a 3.0 percent levy increase. Director Iverson responded that those increases are based on the 3.0 percent increase. Councilmember Holmes stated that she believes the Council should approve the 3.0 percent levy increase mainly because of future TCAAP expenses. Director Iverson reminded the Council that if they are concerned about the 3.0 percent increase, they can reduce the levy after the Truth in Taxation hearing based on the feedback they receive. She offered to bring to that hearing figures based on a variety of levy increases; 2.25, 2.50, and 2.75. Council consensus was to proceed with the budget as presented and that Director Iverson be prepared to discuss the impact of lower levy increases; 2.25, 2.50, and 2.75 percent. D. Fund Balance and New GASB 54 Statement Director Iverson explained the GASB 54 separates fund balances into five new categories requiring that funds be referred to as Non-Spendable, Restricted, Committed, Assigned, or Unassigned. She stated this does not change how the City conducts business; all these changes are from a presentation standpoint in our financial statements and in our fund balance policy. This change will also affect how the budget is presented. Director Iverson stated that another change is how the City's Special Revenue Funds are classified. The most important change will be under Fund Balances. The only funds remaining Special Revenue Funds will be the Cable Fund and the Economic Development Authority Funds. The Community Service Fund and Parks Fund will be reclassified to Capital Funds and TCAAP will be moved to the General Fund because it has no restricted or committed revenue source. Also, she explained that Risk Management will be moved into an Internal Service Fund. Director Iverson stated that to meet the definition of a committed fund balance, Council has to adopt a resolution committing specific revenues prior to the end of the year. She stated she had to go back to the 2010 Audit and reclassify all governmental fund balances into the new classifications. The only fund balances she put in Committed is the Economic Development Authority Fund and the Risk Management Fund. By authorizing the City Administrator and Finance Director to assign fund balances, they can do so once they determine the final numbers by the end of the year. Director Iverson further explained that she will be presenting a formal resolution to commit fund balances and reclassify funds. She stated that at previous work sessions, Council has asked what ARDEN HILLS CITY COUNCIL WORK SESSION—NOVEMBER 21, 2011 7 happens if we fall below our fund balance amount. She explained that she can add something to the Fund Balance Policy to address that; a statement that"In the event that the fund balance is less than the minimum,the next year we will work it into the budget to bring it back up." Mayor Grant and Councilmember Holden indicated they did not want that statement included. G. Revised Utility Ordinance Director Iverson explained what they are proposing is from a cost-efficiency standpoint and because of the economy, foreclosures, and bankruptcies they want to change the City's ordinance to the responsible party for payment of utility accounts be the property owner, not the renter, and that we certify the delinquent utilities on a quarterly basis rather than at year-end. If a property owner files bankruptcy before the delinquent utilities have been certified, the City cannot collect. She also stated staff believes they can achieve more efficiencies in the Finance Department and in Public Works if the City bills all residential accounts on a quarterly basis at the same time. She explained this change will save at least two days of Finance staff time and three days of Public Works time per month for eight months of the year. City Administrator Klaers explained that one item not included that the City Attorney needs to review is whether or not the City has the authority to shut off water to homes in forfeiture. E. 2012-2016 Capital Improvement Plan Director Iverson stated the CIP has been previously discussed by the Council. She reviewed a summary of the major changes as listed in the packet provided. Councilmember Holden asked how the Pavement Management Program changes previously discussed are reflected in the CIP. Director Maurer responded that he tried to address in the CIP the items discussed with the Council at their last work session by moving some projects around, adding some maintenance items, and crack and seal coating projects. CIP Changes: Public Works • Mounds View Trail—High School Connection—Lake Valentine Road ($200,000 - 2012) Mayor Grant asked about assessing the school for these improvements. Director Maurer stated that staff is not clear about the ability to assess the school when the project crosses County park land. He explained that preliminary topographic work has been done and it was determined that a retaining wall is necessary for a portion of this trail. That amount was not included in the original CIP schedule. Accordingly, staff increased the amount they consider to be the maximum amount including the retaining wall. Staff has not yet contacted the school regarding their willingness to participate in the cost of this project. ARDEN HILLS CITY COUNCIL WORK SESSION—NOVEMBER 21, 2011 8 Council consensus was to leave this amount as presented until the school has been contacted. • Valentine Park Improvements ($582,000 - 2012) and Playground Replacement ($60,000 - 2012) Director Maurer explained that this figure reflects the discussion with the Council at a previous meeting. Staff will be fine-tuning these numbers and will bring the project back to the Council for further consideration. Councilmember Holden asked if this project could be split over a couple of years. Director Maurer responded affirmatively. He added that this amount includes all the amenities previously presented to the Council and the Council can choose to proceed with all or a part of the proposal. Councilmember Holden expressed concern that these figures over-inflate the budget if, in reality,the Council does not intend to spend that much. Director Iverson explained that Capital budget items are amended as the project comes forward to the Council. Director Maurer explained that when he puts an item in the CIP, he tries to ensure that the actual project expense will not exceed the CIP amount. • County Road E Trail ($25,000 - 2012) Parks and Recreation Manager Olson explained that this is an estimate that's being added in case the City is awarded the project grant. Applications are currently being scored. Councilmember Holden asked how much of the $1.5 million project would be the City's responsibility. Parks and Recreation Manager Olson responded that the details are listed in the CIP as $401,687 for the City and $194,183 for the County. • Communications Equipment($35,000 - 2012) City Administrator Klaers explained that this is for the purchase of a new system for CTV City announcements to replace the slides process currently in use. Councilmember Holmes stated that she thinks the entire television system needs to be revamped. Cable funds are diminishing and no one watches the Council meetings anymore because the sound is so poor they can't hear Councilmembers. She added that she doesn't want to invest additional funds until the system is fixed. ARDEN HILLS CITY COUNCIL WORK SESSION—NOVEMBER 21, 2011 9 Councilmember Holden stated that she agrees with Councilmember Holmes' concerns. After some discussion, Council consensus was to request a meeting with CTV representatives,New Brighton cable personnel, and City staff to resolve the sound issues. • Water Meter Upgrades ($175,000 - 2012) Director Maurer explained that he came to this figure by combining what was not spent in 2011 with the 2012 funds. He explained that based on Council comments in previous discussions, he has put together a "laundry list" of things that need to be done. He is currently working on the overall plan and will bring it to Council once it's finalized. • Install SCADA($200,000 - 2014) Director Maurer explained that he moved this item to 2014 but believes that by that point in time it will no longer be needed as Public Works has figured out a different way to accomplish SCADA a lot cheaper. Also, he stated there are aspects of SCADA the City would not utilize. Another factor is that technology is changing daily. • Lift Station Reconstruction($410,000 - 2013) Director Maurer stated that he moved the lift station reconstruction from 2014 to 2013. • 2011 Seal Coating Monies Moved to 2012 ($215,000 - 2012) Director Maurer explained that there was money in the CIP for this item in 2011 and 2012 but he didn't feel comfortable spending it in 2011 because he wanted time to get the streets re-rated. These monies will do two years' worth of work in one year. • 2013 Mill and Overlay Removed—Crack Seal and Seal Coating Added($140,000 - 2013) Director Maurer stated that these monies were for the Chatham area but he does not believe the condition of the road is such that the City should assess the property owners. He added that he would like to get another "cycle" out of this road and then reclaim it at some point rather than doing an overlay. • 2014 Crack Seal and Seal Coating ($145,000 - 2014) Director Maurer explained that he had added $10,000 to this item to ensure sufficient funds based on a 2.5 percent inflation rate. • Ridgewood Asbury—2013 PMP ($1,534,000 - 2013) Director Maurer stated this project is in the Edgewater neighborhood where there have been frequent water main breaks. This will rebuild the roads and replace the water mains. He also explained that he reviewed 2010 and 2011 CIP's per foot costs for this type of project to determine the proposed amount. ARDEN HILLS CITY COUNCIL WORK SESSION—NOVEMBER 21, 2011 10 • Glenview Neighborhood—2015 PMP ($3,600,000 - 2015) Director Maurer stated these funds will be utilized for the whole Glenview neighborhood including new water mains throughout the neighborhood. He added that he would prioritize this higher than other projects. • Highway 10/96 Interchange ($490,000 - 2013) Director Maurer stated this moved the project from 2012 to 2013. • Indian Oaks/Floral PMP ($275,000 - 2016) Director Maurer stated this is simply moving the project out one year. • West Round Lake Road PMP Director Maurer stated this project was pushed out of the five year plan. Councilmember Holden requested a list of projects that could be funded by using MSA funds. Director Maurer named the following projects that are MSA eligible: Snelling Avenue; the City's costs associated with US 10/Highway 96 improvements; B2 District, and some trail projects. He also offered to provide a written list. Councilmember Holden referred to Page 1, Projects by Category in the CIP book and questioned the funds for irrigation for Hazelnut Park. She questioned if the ball field and soccer field should both be included in the cost estimate. Director Maurer responded that he had directed Ms. Olson to put in the maximum amount the City would spend on this site and to include three areas; the common green space coming off the road, the soccer field, and the baseball/football field to see how quotes come in. Councilmember Holden asked if Director Maurer anticipates spending $15,000 on the regulatory street sign replacement program. Director Maurer responded that there is a push at the Federal level to change the implementation dates. This amount was placed in the CIP before those dates changed. He plans to replace approximately one-third of the City's regulatory signs when the warranty for reflectivity expires which will be cheaper. He explained that this CIP item is front-end loaded so Public Works can stock up on signs and posts (posts are included in the federal mandate) and then replace them as needed. Councilmember Holden asked if the CIP for the water tower is for the north or south tower. Director Maurer responded that the monies are included to do an inspection of both towers and do minor repairs on the south tower. ARDEN HILLS CITY COUNCIL WORK SESSION—NOVEMBER 21, 2011 11 Director Maurer responded that the monies are included to do an inspection of both towers and do minor repairs on the south tower. Mayor Grant questioned why there was an item for Park Amenities for $3,000 and then Park Benches for$5,000. Manager Olson stated the $5,000 is for the bench replacement program that the Council approved a couple of years ago. The Council also suggested at that time, the addition of the Park Amenities item with an annual budget of$3,000. Councilmember Holden questioned.if the City still had to invest $100,000 in the I&I program. Director Maurer explained that the City has not yet heard from the Metropolitan Council but we will have fulfilled our obligation to date. 3. COUNCIL COMMENTS Councilmember Holmes reported that she had attended the recent Sheriff's Contracted Cities meeting where it was announced that the Sheriff's Department is behind on hiring an animal control person. The process is taking longer than anticipated. Councilmember Holden asked if Sand Company received their grant. Administrator Klaers responded that they were not approved. Councilmember Holden stated that she had forwarded to Mayor Grant and Councilmember Holmes information on the 501(c)3 with regards to establishing a non-profit for the City festival. Councilmember Holden stated the Neighborhood Watch program isn't functioning well because the Sheriff's Department no longer has the phone tree to inform residents of a concern in a specific area. She recommended the Sheriff obtain email addresses for sharing information. Mayor Grant stated that he had asked Administrator Klaers to schedule an Economic Development Authority meeting before the end of the year. Mayor Grant requested an update on the CVS Pharmacy proposal. Administrator Klaers explained that Walgreens had contacted the developers and purchased the site. CVS is no longer involved. Mayor Grant reported the following: • National Guard broke ground on their new maintenance facility which he and Congresswoman Betty McCollum attended • The 203rd had a ribbon-cutting ceremony which was also attended by Congresswoman Betty McCollum • He and other officials signed the covenant recognizing the commitment of soldiers • Should add a discussion to the next work session regarding the Yellow Ribbon committee ARDEN HILLS CITY COUNCIL WORK SESSION—NOVEMBER 21, 2011 12 • Suggested the City make an effort to bring the Army into the community more; possibly by involving them in the City festival. Director Iverson stated the Employee Recognition Committee will be meeting December 7 and would like one of the Councilmembers to participate. Councilmember Holden offered to attend. Councilmember Holden suggested if the Council does not approve the Special Use permit for the current proposal on the Rob Davidson property, the Council should meet and discuss what type of use they are interested in for that site and inform Mr. Davidson. She also stated this is something the Economic Development Authority should discuss. ADJOURN MOTION: Councilmember Holmes moved and Mayor Grant seconded a motion to adiourn. Motion carried unanimously. Mayor Grant adjourned the City Council Work Session meeting at 8:50 p.m. Patrick Klaers David Grant City Administrator Mayor