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HomeMy WebLinkAbout09-10-12-R It EN HILLS Approved: October 8, 2012 CITY OF ARDEN HILLS, MINNESOTA REGULAR CITY COUNCIL MEETING SEPTEMBER 10, 2012 7:00 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 regular City Council meeting at 7:01 p.m. Present: Mayor David Grant, Councilmembers Brenda Holden, Fran Holmes, Nick Tamble, and Ed Werner Absent: None Also present: City Administrator Patrick Klaers; Director of Finance and Administrative Services Sue Iverson; Public Works Director Terry Maurer; and Deputy City Clerk Amy Dietl PLEDGE OF ALLEGIANCE 1. APPROVAL OF AGENDA MOTION: Councilmember Holden moved and Councilmember Werner seconded a motion to approve the meeting agenda as presented. The motion carried unanimously (5-0). 2. PUBLIC INQUIRIESANFORMATIONAL None 3. STAFF COMMENTS A. Transportation Update Public Works Director Maurer stated that the eastbound lane of 1-694 will be reduced to one lane during the evening of Tuesday, September 18, 2012, beginning at 8:00 p.m. until Wednesday, September 19, 2012, at 5:00 a.m. Old Highway 10 (under the new bridge) will also be closed the evening of September 18, 2012, for the purpose of setting bridge beams. The two bridges off of County Road 10 onto I-35W should be open to cross traffic in late September, and in October, the ARDEN HILLS CITY COUNCIL— SEPTEMBER 10, 2012 2 accesses to and from I-35W will be open. In late November, the stretch of Highway 10 from Highway 96 to I-694 will open. Public Works Director Maurer explained that the 30-day closure of County Road F and Hamline Avenue is tentatively set for late September or early October. Once a specific start date is decided, signs will be posted about one week in advance. Additionally, contractors are scheduled to crush pavement at Snelling Avenue and Grey Fox Road around mid-September. Much of the old I-694 eastbound lane that is being removed at that site will be crushed and extended work hours of 7:00 a.m. to 10:00 p.m. are expected. B. Celebrating Arden Hills Fall Festival Update Public Works Director Maurer stated that the Celebrating Arden Hills fall festival is Saturday, September 15, at the Tony Schmidt Regional Park from 3:00 p.m. until dusk, with fireworks beginning at approximately 8:00 p.m. He noted that several favorite activities will be returning, such as a rock climbing wall, a bungee trampoline, hay rides, Fire Department water activity, a moonwalk, pontoon rides, and community booths. New activities include a petting zoo, a strolling magician, D.J./karaoke, TCAAP (Twin City Army Ammunition Plant) tours, and community booth demos. Public Works Director Maurer announced that the community booth demos will take place from 4:30 to 6:30 p.m. with giveaways and a prize drawing for gift certificates and other prizes at 6:45 p.m. He indicated that most activities are offered free of charge, with the exception of food concessions, the caricaturist, and photos from the photo booth. Public Works Director Maurer stated that parking for the event is limited at the Tony Schmidt Regional Park, but the south side of Lake Johanna Boulevard (east of the park), and both sides of Country Road E (west of the park), will remain open for parking during the event. Additional parking is available at Perry Park and shuttles will run all day. Public Works Director Maurer thanked the 2012 sponsors of the Celebrating Arden Hills Fall Festival for their generous donations totaling approximately$11,500. 4. APPROVAL OF MINUTES A. August 13, 2012 Regular City Council B. August 20, 2012 City Council Work Session MOTION: Councilmember Holden moved and Mayor Grant seconded a motion to approve the August 13, 2012, Regular City Council meeting minutes and the August 20, 2012, City Council Work Session meeting minutes as presented. The motion carried unanimously (5-0). 5. CONSENT CALENDAR A. Motion to Approve Consent Agenda Item - Claims and Payroll ARDEN HILLS CITY COUNCIL—SEPTEMBER 10, 2012 3 B. Motion to Approve Resolution 2012-03,0 Designating Brokerage Firms for Investments C. Motion to Approve Walgreens Tobacco License MOTION: Councilmember Tamble moved and Councilmember Holden seconded a motion to approve the Consent Calendar as presented and to authorize execution of all necessary documents contained therein. The motion carried unanimously (5-0). 6. PULLED CONSENT ITEMS None. 7. PUBLIC HEARINGS None. 8. NEW BUSINESS A. Set Operating Levy Payable 2013 Director of Finance and Administrative Services Iverson reviewed her staff report with the City Council. She stated that the median residential property value in Arden Hills decreased by 5.6%. Some homes increased and some decreased, but overall, the median value went from $272,800 to $257,400. She noted that property values have declined for the past five assessment years, and this last year has been the largest in terms of residential loss. She stated that despite this most recent decrease, there are encouraging signs: the market is stabilizing, there is a flattening in the decline of residential values, apartment values are rising, and foreclosures are at the lowest percentage in many years. Director of Finance and Administrative Services Iverson explained that to evaluate the true impact of a tax levy change to the residential property owner, the decrease in fiscal disparities and the change in the taxable value need to be taken into account. There is an 8.2% decrease in the fiscal disparity portion of the levy and the local taxable value has also decreased by 4.4% because of the market values. This results in a net tax rate increase of 5.4% before any levy adjustments are made. Director of Finance and Administrative Services Iverson stated that staff has prepared a preliminary levy of 4.1% per City Council direction given at previous work sessions. She noted that the major increases to the budget are for public safety costs and other contracted services. For example, the fire contract increased 5.52%, the sheriff and animal control contract increased 3.34%, and the 911 dispatch contract increased 5.79%. In total, the public safety contracts amount to 41.84% of the proposed budget increase. Other contracted services include IT support, auditing, legal, and consultants for other projects, such as B2 Business District and Twin Cities Army Ammunition Plant(TCAAP). ARDEN HILLS CITY COUNCIL— SEPTEMBER 10, 2012 4 Director of Finance and Administrative Services Iverson stated that a preliminary levy needs to be established and certified by September 15 each year to the County. The final levy is not adopted until December, however, once a preliminary levy is established, the amount can be reduced, but it cannot be increased. Mayor Grant asked for clarification regarding the drop in residential property values, which was 5.6% in Arden Hills compared to the county average of 7.6%. This means that homes in Arden Hills are still holding their value compared to other cities in the County. Director of Finance and Administrative Services confirmed that it was the median-valued home that was used in the figures that were provided. While some homes have decreased in value, others may have increased. Councilmember Holden indicated that she understood the fire contract increase of 5.52% is due to additional staff being scheduled as the duty crew program gets implemented. She inquired about the increase in the 911 dispatch contract. Director of Finance and Administrative Services Iverson explained that when the 911 dispatch contract began, there were no previous statistics to use to formulate an average cost. Since it was uncertain how much the service was going to be, a three-year rolling average formula was created. The City did not see an increase initially, but now that we are in the second year of the three-year rolling average, the increase in cost is now being passed on to all the cities. Councilmember Holden inquired about the increase in costs associated with IT services. Director of Finance and Administrative Services Iverson stated that when the City initially contracted with the City of Roseville for its IT needs, there was no increase in costs. As time passed, the number of cities belonging to the group has increased and Roseville has added more staff to accommodate for the additional equipment (i.e. adding laptops, cell phones, etc.). The City of Roseville had been absorbing those additional costs, and they are slowly passing those increases on to the cities. Mayor Grant noted that if Council did not increase the levy, the owner of a median valued home would still see an increase of 5.4%to the City tax rate. Director of Finance and Administrative Services Iverson stated that the local portion of the levy is divided by the local taxable value. Because the local taxable value has gone down, there is less of a base to divide the levy into, and that is why there is a tax rate increase. Councilmember Werner asked based on a median priced home, and assuming a 4.1% increase in the levy, what that increase means dollar-wise. Director of Finance and Administrative Services Iverson noted that it is an annual increase of $20.50 or 1.68 per month. Discussion continued regarding the tax levy and possible budget cuts. ARDEN HILLS CITY COUNCIL— SEPTEMBER 10, 2012 5 Council consensus was to set the levy at 3% increase. MOTION: Councilmember Tamble moved and Councilmember Holden seconded a motion to adopt Resolution 2012-031, a Resolution Setting the Preliminary Levy for Taxes Payable in 2013 in the Amount of $3,191,230 (3% increase). The motion carried unanimously (5-0). B. 2012 Truth-In-Taxation Hearing Date Director of Finance and Administrative Services Iverson stated that every year by September 15, the City is required to adopt and certify to Ramsey County the Truth-In-Taxation hearing dates. She noted that in 2009, the Legislature changed the Truth-In-Taxation laws and now we are only required to announce the date at a regular meeting and schedule a hearing which may be done during a regular meeting. At the meeting, the Council will discuss the budget and levy and take comments from the public, but the City is no longer required to publish notices in the paper. The budget and final levy may be adopted after the hearing during the same meeting. She stated that the meeting must be held after November 26, but must be held before December 26, and the meeting must occur at or after 6:00 p.m. Mayor Grant suggested holding the Truth-In-Taxation meeting on December 10, 2012, at 7:00 p.m. at the regular City Council meeting. MOTION: Mayor Grant moved and Councilmember Holmes seconded a motion to adopt Resolution 2012-032, a Resolution Adopting December 10, 2012, at 7:00 p.m. as the Truth-In-Taxation Public Hearing Date for Proposed Taxes Payable in 2013. The motion carried unanimously (5-0). 9. UNFINISHED BUSINESS None. 10. COUNCIL COMMENTS AND STAFF UPDATES Councilmember Holmes noted that the next 132 Corridor meeting is Monday, October 8 at 3:00 p.m. at Country Financial. A summary of the feedback given at the business meetings will be provided and everyone is welcome to attend. Councilmember Werner stated that on Saturday, September 22, the rain garden will be planted at Valentine Park. Over 1,000 plants will be planted, so anyone who wants to volunteer should contact Michelle Olson at the City. Councilmember Holden announced that the Northwest Youth & Family Services' Taste of Northwest event is September 27, and there will be free food, a silent auction, and door prizes. Tickets are still available. Councilmember Holden inquired about the MnDOT meeting on pedestrian and bike crossings over I-694 and who at the City will be attending. She questioned the scope of the meeting ARDEN HILLS CITY COUNCIL— SEPTEMBER 10, 2012 6 because Lexington Avenue already goes over I-694 in the City of Shoreview, as do Victoria and Rice Streets. Arden Hills doesn't have a pedestrian crosswalk. Public Works Director Maurer stated that he will be in attendance at the meeting. He said that many members of the committee expressed concerns at the last meeting because many feel that it has lost its focus. He noted that the study was an outcropping of the 1-694 Municipal Consent Process, and MnDOT stated that they would look at this corridor. He noted that it might just be a matter of identifying potential crossings over 1-694 for future bridge projects, or to assist with federal or state funding to be able to say it's on a regional plan adopted by communities and county. Councilmember Tamble announced that for the second time in ten years, he has heard an owl in Floral Park. Mayor Grant reminded everyone that Celebrating Arden Hills is on September 15 starting at 3:00 p.m. at the Tony Schmidt Regional Park. Additionally, he noted that the weed problem at Valentine Park looks a lot better now. Director of Public Works Maurer stated that Valentine Park was reseeded. There are two spraying of weeds in the contract at the park and the first application of weed killer may happen yet this year. ADJOURN MOTION: Mayor Grant moved and Councilmember Tamble seconded a motion to adiourn. The motion carried unanimously (5-0). Mayor Grant adjourned the Regular City Council Meeting at 8:12 p.m. to a closed work session to discuss the City Administrator's performance review. 1 i�`l�� la4v,14a J, Patrick Klaers David Grant City Administrator Mayor