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HomeMy WebLinkAbout12-10-12-R --ARE IILLS Approved: February 11, 2013 CITY OF ARDEN HILLS,MINNESOTA REGULAR CITY COUNCIL MEETING DECEMBER 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 7:03 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; Finance Analyst Kyle Howard; and Deputy Clerk Amy Dietl PLEDGE OF ALLEGIANCE 1. APPROVAL OF AGENDA Mayor Grant requested item 4L be removed from the Consent Agenda for discussion. Councilmember Holmes requested Item 4G be removed from the Consent Agenda for discussion. MOTION: Councilmember Holden moved and Mayor Grant seconded a motion to approve the meeting agenda as amended. The motion carried unanimously fL 2. PUBLIC INQUIRIESANFORMATIONAL None. 3. APPROVAL OF MINUTES A. October 29, 2012, Special Work Session Meeting (5:15 pm) B. October 29, 2012, Regular City Council ARDEN HILLS CITY COUNCIL—DECEMBER 10, 2012 2 C. October 29, 2012, Special Work Session Meeting (Immediately following the Regular City Council Meeting) D. November 13, 2012, Special Work Session E. November 13, 2012, Regular City Council Councilmember Holmes requested a change to the October 29, 2012 Special Work Session near the end of Page 3, amending her comment to include the developer may need to make some concessions in terms of the proposed road on the west side of the property. MOTION: Councilmember Tamble moved and Councilmember Holden seconded a motion to approve the October 29, 2012, Special Work Session (5:15 pm) meeting minutes as amended; the October 29, 2012, Regular City Council meeting minutes, October 29, 2012, Special Work Session (Immediately following the Regular City Council Meeting) meeting minutes, November 13, 2012, Special Work Session meeting minutes; and November 13, 2012, Regular City Council meeting minutes as presented. The motion carried unanimously (5-0). 4. CONSENT CALENDAR A. Motion to Approve Consent Agenda Item- Claims and Payroll B. Motion to Approve Resolution No. 2012-045: Appointment of John Van Volkenburg to the Parks, Trails, and Recreation Committee C. Motion to Approve the Cancellation of the December 31, 2012, Regular City Council Meeting D. Motion to Approve Resolution 2012-046 Accepting the Liability Coverage Limits from the League of Minnesota Cities Insurance Trust (LMCIT) for 2013 E. Adoption of the 2013 Employee Compensation Plan—Non-Union Employees F. Adoption of the 2013 City Contribution for Employee Benefits Ci. Adopt Resolution to Request tha4 Tffl Forfeited Pr.,peft ,be Withheld from H. Motion to Approve Resolution 2012-044 Setting the 2013 Recycling Fee I. Motion to Approve 2013 Liquor License Renewals J. Motion to Approve 2013 Tobacco License Renewals K. Motion to Authorize the Purchase of Street Signs and Posts MOTION: Councilmember Holden moved and Councilmember Werner seconded a motion to approve the Consent Calendar as amended and to authorize execution of all necessary documents contained therein. The motion carried unanimously (5-0). 5. PULLED CONSENT ITEMS A. Metropolitan Council Environmental Services I & I Grant Update Mayor Grant stated he pulled this item because he understood that a joint seals project in the southwest quadrant was already completed. ARDEN HILLS CITY COUNCIL—DECEMBER 10, 2012 3 Councilmember Holden recalled that the area had been relined but not all joints were sealed. Public Works Director Maurer stated he would review this further prior to proceeding with a lining project. MOTION: Mayor Grant moved and Councilmember Holden seconded a motion to approve the Metropolitan Council Environmental Services I & I Grant Update. The motion carried (5-0). B. Adopt Resolution to Request that Tax-Forfeited Property be Withheld from Sale Councilmember Holmes questioned where this tax-forfeited property was located. She questioned why the City should purchase this site as there were three parcels that could be developed and be brought back onto the tax rolls. Community Development Director Hutmacher reviewed the location to be along Snelling Avenue noting it was vacant at this time. She indicated the site had become tax-forfeit and the location fit in with the City's storm water conservation plan. For this reason, staff was recommending the site be withheld from sale. She commented the site would be held for six months to allow the City to review the use of this site. Councilmember Holden supported the property being withheld. She commented the purchase price of the property was $2,000 plus $43,000 in past assessments. MOTION: Councilmember Holden moved and Mayor Grant seconded a motion to adopt Resolution #2012-050 — Resolution Requesting that Ramsey County Withhold Tax-Forfeited Property Located at 3208 Hamline Avenue North from Public Sale. The motion carried (5-0). 6. PUBLIC HEARINGS A. Delinquent Utilities Director of Finance and Administrative Services Iverson reviewed a list of delinquent utilities with the Council noting that the property owners were notified of tonight's public hearing. She explained these property owners were requested to make payment of the balance by December 7, 2012, or the outstanding expense would be certified to Ramsey County and be payable in 2013. She noted the City took this action on a quarterly basis to assure the City received payment. Councilmember Werner asked how these property owners were placed on the delinquent utility list. Director of Finance and Administrative Services Iverson explained these property owners were 90 days outstanding on their bills. Mayor Grant opened the public hearing at 7:21 p.m. ARDEN HILLS CITY COUNCIL—DECEMBER 10, 2012 4 With no one coming forward to speak, Mayor Grant closed the public hearing at 7:22 p.m. B. Truth-in-Taxation Hearing Director of Finance and Administrative Services Iverson noted a Truth-in-Taxation Hearing would be held this evening. She discussed why property tax bills vary on a year-to-year basis due in part to market value changes, special assessments, budget and levy changes, and changes to Federal and State mandates, in addition to State legislative changes. She explained the median market value on a single family home in Arden Hills went down by 5.6%. Apartment values increased by 3.6% and commercial/industrial values fell by .64%. Director of Finance and Administrative Services Iverson discussed the effect of adding a 3% City levy increase would have on property taxes. These increases were due to a 1.8% increase in public safety, and a 1.2% increase in salary, benefits and various other costs. She noted fiscal disparity dollars were reduced by 8.2% and the local tax capacity value fell by 4.5%. This would result in a City tax increase for median homeowners of $12.97 in the coming year. She then reviewed a property tax notice in further detail. Director of Finance and Administrative Services Iverson compared Arden Hills' tax rate to other cities in Ramsey County stating Arden Hills was 15th out of 19 cities (with 1 being the highest, 19 the lowest). She discussed the 2013 key budget elements with the Council and discussed the proposed budget transfers. She reviewed the proposed general fund revenues and expenditures projected for 2013 and compared these numbers to previous years. Staff recommended the Truth-in-Taxation Hearing be held noting the 2013 budget and levy would be approved this evening. Councilmember Holden commented the Mounds View School trail should be removed from the 2013 CIP budget as it is being programmed for 2015. Mayor Grant opened the Truth-in-Taxation hearing at 7:41 p.m. Mark Johnson, 3124 Hamline Avenue, thanked the Council for keeping the increases as low as possible, however his property taxes were still increasing given the tax shift over the past several years. He commented his taxes have increased $1,000 over the past several years and would again raise another $1,000 in 2013. Director of Finance and Administrative Services Iverson stated this was due to the market value exclusion changes made at the State level, which was affecting Arden Hills' homeowners greatly. Mark Kelliher, 3712 Chatham Court, understood there was a 3% levy increase from the City. He requested clarification on how the City tax increase was then 9%. Director of Finance and Administrative Services Iverson explained this was due to market shifts in home values and the City's tax base was shifted. She encouraged Mr. Kelliher to speak with her after the meeting where she could provide further clarification. ARDEN HILLS CITY COUNCIL—DECEMBER 10, 2012 5 City Administrator Klaers indicated even if a 0% tax levy was proposed for 2013, property owners would still see a 5.5% tax increase due to the changes in the tax system, which was out of the City's control. Mayor Grant closed the Truth-in-Taxation hearing at 7:50 p.m. Mayor Grant asked why Roseville taxes were rising over 16% in 2013. Director of Finance and Administrative Services Iverson commented this was due to a new fire station. 7. NEW BUSINESS A. Resolution 2012-051: Adopting and Confirming Quarterly Special Assessments for Delinquent Utilities MOTION: Mayor Grant moved and Councilmember Holden seconded a motion to adopt Resolution #2012-051 — Adopting and Confirming Quarterly Special Assessments for Delinquent Utilities. The motion carried (5-0). B. 2013 Proposed CIP, Final Budget and Tax Levy Mayor Grant requested action on these items be taken separately. MOTION: Mayor Grant moved and Councilmember Werner seconded a motion to approve the 2013-2017 CIP as presented. The motion carried (5-0). MOTION: Mayor Grant moved and Councilmember Holden seconded a motion to adopt Resolution 92012-048 — Adopting the 2013 Budget in the amount of $13,968,455. Councilmember Holden asked if the recreation rates were set to assist in reducing the subsidy. Director of Finance and Administrative Services Iverson noted the new fee schedule was taken into consideration with the 2013 budget. The motion carried (5-0). MOTION: Mayor Grant moved and Councilmember Tamble seconded a motion to adopt Resolution #2012-049 — Setting the Final Lew for Taxes Payable in 2013 in the amount of$3,191,230. Councilmember Tamble thanked Director of Finance and Administrative Services Iverson for her presentation this evening as this provided valuable information to the homeowners on the tax rate and tax levy. ARDEN HILLS CITY COUNCIL—DECEMBER 10, 2012 6 Councilmember Holmes thanked those present this evening for providing Council with their concerns. Councilmember Holden asked what the total increase in the budget was for fire, police and 911 services. Director of Finance and Administrative Services Iverson explained the increase for police was 3.3%; fire increased 5.5% and 911 services increased 5.7%. The total increase was approximately $57,000 or 1.8% of the budget. Councilmember Werner indicated police and fire were core services that had to be provided by the City. Mayor Grant stated police and fire services would be far more expensive if provided directly by the City. He noted the contracts greatly benefited the City. Councilmember Holden commented she would be supporting the 3% tax levy as presented this evening and commended the City for keeping costs under control while still meeting the core functions for the residents of the Arden Hills. Mayor Grant explained he has always worked to lower this percentage but noted he would be supporting the 3% as the 2013 budget was necessary. The motion carried (5-0). C. Utility Rate Study Discussion Finance Analyst Howard stated the utility rates were discussed on November 19th in a work session. He noted the goal was to make the billing more equitable and fair for residents, while promoting water conservation. The current system was receiving complaints because homeowners were not using the full 10,000 gallons with the original meter fee. Finance Analyst Howard explained FPAC recommends the Council bill from gallon one on. This would allow low end users to pay only for the amount of water used and not 10,000 gallons. The FPAC would also recommend the meter charge be adjusted to cover 60% of the fixed costs. In addition, the rates should be tiered for 0-10,000 gallons, 10,000-35,000 gallons and 35,000+ gallons. He then asked for questions or comments from the Council. The rate for the first tier would be $2.50, the second tier would be $3.25 and the last tier would be $5.75. Councilmember Tamble was pleased with the proposed rate structure as it would collect on the actual water gallons used. Councilmember Holden questioned if the rates with Roseville were stable. Finance Analyst Howard stated this was the case; the rates have been stable over the past three years. ARDEN HILLS CITY COUNCIL—DECEMBER 10, 2012 7 Councilmember Holden thanked FPAC for completing the water rate study and for the recommendations made to Council. Councilmember Holmes agreed stating the water rate proposal covers the City's fixed cost and gallons used, which was fair for all residents. Mayor Grant stated as a liaison to FPAC he was part of this process. He thanked FPAC and staff for coming together and providing a recommendation to the Council on the water rates. He explained the City was not trying to make money off of water rates. The City was simply trying to cover the cost of the expense to provide water to the residents. Finance Analyst Howard indicated Staff was recommending the sewer rates remain as is for 2013. He commented storm water rates would need an adjustment as this fund would go negative at the current rate. He estimated the rate would have to increase by $1.52 in 2013 and $1.76 in 2014. Councilmember Holden inquired how much more residents would be paying under the new rates. Finance Analyst Howard stated a 5,000 gallon user would pay an additional 22¢ under the new system. MOTION: Councilmember Holden moved and Mayor Grant seconded a motion to accept the Financial Plannine and Analysis Committee recommendations for the Utility Rate Study. Councilmember Holmes asked if the fee schedule was being approved at this time. Director of Finance and Administrative Services Iverson commented the rates would be adopted under Item 7D. The motion carried (5-0). D. Approve Ordinance 2012-010 Adopting the 2013 Fee Schedule and Authorizing Publication of the Ordinance Summary Deputy Clerk Died explained the Council reviews the fee schedule on an annual basis for administrative, building construction, liquor licensing, copying of maps and ordinances, parks and recreation facility usage, planning and zoning, utilities, business licenses, false alarms, utility fees and other miscellaneous permits and penalties that are enforced by the City. The Council reviewed the proposed changes to the 2013 fee schedule at their October 15, 2012, work session meeting. Deputy Clerk Dietl stated the Council consensus on October 15th was to raise fees by five percent to cover increased costs for providing services. These changes did not include any changes to the utility rates. Staff recommended the Council approve the fee schedule with the understanding that the utility rates would be amended using the rates adopted tonight. ARDEN HILLS CITY COUNCIL—DECEMBER 10, 2012 8 MOTION: Councilmember Tamble moved and Councilmember Holden seconded a motion to adopt Ordinance #2012-010 — Adopting the 2013 Fee Schedule as Amended with Newly Adopted Utility Rates and Authorizing Publication of the Ordinance Summary. Councilmember Holmes asked if the numbers on Page 9, regarding the water and utility rates were correct. Director of Finance and Administrative Services Iverson stated the numbers were not correct and would be amended to reflect the newly adopted rates. Councilmember Tamble was pleased the rates were being raised a uniform percentage as this would be easy to maintain going into the future. The motion carried (5-0). 8. UNFINISHED BUSINESS None. 9. COUNCIL COMMENTS/STAFF UPDATES Mayor Grant noted he met with Pulte Homes and they have sold 36 of their 39 units. At this time, the model and two other vacant lots are all that remain unsold. He understood there has been some interest in the model, as it is an upgraded unit. Mayor Grant stated he had a short conversation with Community Development Director Hutmacher regarding the triangle property. The MPCA was continuing their evaluation on the site and didn't expect to be done until the first week in January. Mayor Grant thanked Councilmember Tamble for his service and dedication to the City of Arden Hills, stating he would be missed. Councilmember Tamble thanked the Mayor for his kind words. He commented the Arden Hills website is now live, and he is pleased with the new site as it was much more user-friendly. Mayor Grant explained he had reviewed the new website and was also very pleased. Councilmember Tamble stated he has had a wonderful experience serving on the City Council. He recognized Brenda Holden for her assistance in campaigning and to Mayor Grant for his appointment to fill the Councilmember vacancy. Councilmember Holden wished Councilmember Tamble well and thanked him for all of his contributions to the City. She appreciates his dedication to Arden Hills. ARDEN HILLS CITY COUNCIL—DECEMBER 10, 2012 9 Councilmember Werner thanked the Public Works Department for getting the streets cleared after the recent snow storm. He complimented Councilmember Tamble for his contributions to the City's website. Councilmember Holmes also thanked Councilmember Tamble and his wife for their contributions to the City. ADJOURN MOTION: Mayor Grant moved and Councilmember Werner seconded a motion to adiourn. The motion carried unanimously (5-0). Mayor Grant adjourned the regular City Council meeting at 8:38 p 14?V /(Patrick Klaers David Grant City Administrator Mayor