HomeMy WebLinkAbout07-15-13-WSDavid Grant
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Dave McClung
Ed Werner
www.cityofardenhills.org
Arden Hills is a strong community that values its unique environmental setting, strong residential neighborhoods, vital
business community, wellmaintained infrastructure, fiscal soundness, and our longstanding tradition as a desirable City
in which to live, work, and play.
CALL TO ORDER
AGENDA ITEMS
1.A.Verizon Proposal
PM
Patrick Klaers, City Administrator
Documents:MEMO.PDF,ATTACHMENTS.PDF
1.B.Dynamic Display Sign Ordinance
Matthew Bachler, Community Development Intern
Documents:MEMO.PDF,ATTACHMENT A.PDF
Franchise Fees
PM
Patrick Klaers, City Administrator
Documents:MEMO.PDF,ATTACHMENT A.PDF, ATTACHMENT B.PDF
South Water Tower Logo And Color
Terry Maurer, Public Works Director
Documents:MEMO.PDF,ATTACHMENTS.PDF
1.E.State Of The City Topics
Patrick Klaers, City Administrator
Documents:MEMO.PDF
1.F.Respectful Workplace Follow
Sheila Krejci
Documents:MEMO.PDF
COUNCIL COMMENTS
AGENDA ITEM
MEMORANDUM
DATE: July 15, 2013
TO: Honorable Mayor and City Councilmembers
FROM: Patrick Klaers, City Administrator
SUBJECT: Verizon Concept
Background/Discussion
The Council had a discussion on the Verizon tower location inquiry during the March 18, 2013,
work session. At this meeting, the Council directed staff to get more information on what
Verizon is thinking about doing at the City hall site, and indicated that they were at least open to
hearing more about the proposal.
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Staff met with Verizon staff at City Hall on May 21 to inspect the site and to learn more about
the proposal. At that meeting, the only workable location at the City Hall site was identified. On
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sketch was that Verizon needed to come to a Council work session before any additional work is
done on this proposal. Nobody wants to waste time or money on a proposal if it has no chance of
being approved.
City staff concerns with the proposal are related to the size of building and the property that
Verizon would want to lease. This location may also impact any future long range plans that the
City may have for a City hall expansion and restrict views of Sunfish Lake from the parking lot.
Verizon will stake the proposed base area prior to the meeting so that Councilmembers can better
visualize the size and location of the facility.
Attached for your review are: the aerial photo of the City Hall site; the Verizon sketch and June
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25 email from Joe Egge, Project Manager; and a follow up July 11 email and the maps for the
signal improvement area from Joe Egge.
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AGENDA ITEM
MEMORANDUM
DATE: July 15, 2013
TO: Honorable Mayor and City Councilmembers
Patrick Klaers, City Administrator
FROM: Matthew Bachler, Community Development Intern
SUBJECT: Dynamic Display Sign Ordinance
Requested Action
Review the definition of dynamic display signage in the City Sign Code and direct staff to make
changes if necessary.
Background
The Shell gas station on County Road E has submitted a sign permit application to reface an
existing freestanding sign on their property to include an LED price sign (Attachment A). A
similar price sign was approved administratively for the Holiday Gas Station on Highway 96 in
November 2010. Based on staff interpretation of the Sign Code, this type of sign qualifies as a
dynamic display sign, which are not permitted in the City.
Dynamic display refers to digital advertising signs whose content is updated electronically.
These signs commonly use LED, plasma displays, or LCD to display the content. A variety of
signs can fall under the category of dynamic display, ranging from large-scale billboards with
video displays to public signs providing travel conditions on highways. Municipalities have
responded to the increased use of these types of signs by coming up with regulations and
exemptions to limit their use and design, or by prohibiting them entirely.
The City of Arden Hills Sign Code makes no exceptions for the use of dynamic display signage.
Section 1210 of the Code defines dynamic display as the following:
Any characteristics of a sign that appear to have movement or that appear to change, caused by
any method other than physically removing and replacing the sign or its components, whether
the apparent movement or change is in the display, the sign structure itself, or any other
component of the sign. This includes a display that incorporates a technology or method
allowing the sign face to change the image without having to physically or mechanically replace
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the sign face or its components. This also includes, but is not limited to, any rotating, revolving,
moving, flashing, blinking, projecting, or animated display and any display that incorporate
method or technology that allows the sign face to present a series of images or displays.
The proposed Shell gas station sign qualifies as dynamic display because the numbers in the
LED price sign would change electronically and would not be physically removed and replaced.
The purpose of regulating dynamic display signs is to mitigate the negative impacts and public
safety concerns associated with this type of sign. These include driver distraction and visual
clutter. While the proposed price sign may qualify as dynamic display, the digital display
component of the sign would change infrequently and be unobtrusive, and the sign would not
include any images or moving, flashing, or animated displays.
Discussion
1.Should the Sign Code be updated to exempt certain types of dynamic display signs, such
as price signs, time and temperature signs, and public information signs, which change
infrequently, are unobtrusive, and do not include images or explicit advertising?
2.If no changes to the Sign Code are needed, should the applicant be encouraged to apply
for a site plan review for formal consideration of the proposal by the Council?
Attachment
A.Shell Gas Station Sign Permit Application, #2013-00564
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Attachment A
AGENDA ITEM
MEMORANDUM
DATE: July 15, 2013
TO: Honorable Mayor and City Councilmembers
FROM: Patrick Klaers, City Administrator
SUBJECT: Franchise Fees
Introduction
When the City Council discussed the Capital Improvement Program (CIP) in the summer of
2012, concerns were again raised about not having sufficient funds to do all the projects that
were included within the 5 year plan and to do all the projects that are needed in the long term.
Later in the year, the Council approved a
benefits and drawbacks associated with a franchise fee program. At that time, in October 2012,
staff was directed to follow up on the possibility of establishing a utilities franchise fee.
Background
Earlier this year I discussed franchise fees with neighboring City Managers/Administrators and
learned that Mounds View and New Brighton have existing franchise fee programs and that
Shoreview was considering a franchise fee program (since approved in May, 2013). Sue Iverson,
Director of Finance and Administrative Services, has worked with the Ramsey County staff and
did some preliminary research on our City tax base composition. This past spring, I contacted
Colette Jurek, Manager Community & Local Government Relations, for Xcel Energy to
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Colette sent me
some preliminary data on gas and electric revenues based on a 1% amount that was converted
into a flat fee plan.
The City Council discussed the possibility of establishing a franchise fee program during the
s discussed.
Benefits of a franchise fee program were reviewed and included:
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Will generate a significant amount of revenue that could not be raised from property
taxes alone.
May reduce the growing pressure on taxpayers in the community for more revenues.
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Attached for your review is the May 1 material from Colette Jurek and the follow up material
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from Colette dated June 14, 2013. This June 14 material includes customer counts by
classification and also provides information on how to locate on the Xcel website the list of
communities within the Xcel service territory where franchise fees are currently being collected.
Discussion
According to Colette, Xcel prefers that communities identify a percentage that it wants to collect
or a dollar amount that is needed from franchise fees, and then this percentage or amount is
converted into a flat fee monthly rate. A flat fee rate is preferred to a percentage fee in order to
monthly fee a predictable amount for the customers. Each customer in a classification would pay
the same amount regardless of usage or property value. According to the Xcel list of
communities were franchise fees are collected, this flat fee approach is by far the most common
approach used.
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Based on the figures included in the May 1 material and conversations with Colette on
appropriate guidelines for franchise fee revenues, combined with the feedback from the Council
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during the June 17 work session, the Director of Finance and Administrative Services
developed the following chart:
% of
EstimRevenue
# of1.00%Franchise2.75%FranchiseGenerated
AcctsRateRevenueRatesRevenueby Class
Electric
Residential3051$ 1.00$ 36,612 $ 2.75$ 100,683 22.79%
Commercial/Industrial, smallnon-demand190$ 1.25 2,850$ 3.44 7,8381.77%
Commercial/Industrial, smalldemand173$ 15.25 31,659$ 41.94 87,06219.71%
Commercial/Industrial, Large60$ 123.75 89,100$ 340.31 245,02555.47%
Street lighting17$ 1.25 255$ 3.44 701 0.16%
Municipal pumpingnon-demand2$ 4.00 96 $ 11.00 264 0.06%
Municipal pumpingdemand10$ 0.50 60 $ 1.38 165 0.04%
Total3503$ 160,632$ 441,738 100.00%
Gas
Residential2720$ 1.00$ 32,640 $ 2.75$ 89,76055.64%
Commercialfirm non-demand285$ 5.00 17,100$ 13.75 47,02529.15%
Commercialfirm demand1$ 18.00 216$ 49.50 594 0.37%
Smallinterruptible6$ 61.00 4,392$ 167.75 12,0787.49%
Medium & largeinterruptible3$ 120.00 4,320$ 330.00 11,8807.36%
Transportationfirm0$ 120.00 -$ 330.00 -0.00%
Transportationinterruptible0$ 120.00 -$ 330.00 -0.00%
Total3015$ 58,668 $ 161,337 100.00%
Estimated Franchise Revenue$ 219,300$ 603,075
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The data in this chart shows that the electric customer would pay 73.25% and the gas customers
would pay 26.75% of the total amount of franchise fees collected. Each residential customer
would pay $2.75 per month for electric and $2.75 per month for gas. The electric residential
customer pays 22.79% of the total electric franchise fee and the gas residential customer pays
55.64% of the total gas franchise fee. Combined, the residential customer pays 31.58% of the
City Fee
total franchise fee collected. (This will show up as a on all the customer bills.)
Based on a franchise fee of 2.75 percent converted to a flat fee plan, the City is expected to
receive $603, 075 in new revenue. To compare the impact to the home owner for the annual
franchise fee ($2.75 x 2 = $5.50 x 12 = $66 per year) verses an increase in the property taxes to
generate this same $603,075 amount, the Director of Finance and Administrative Services has
developed the following chart:
$603,075 Annual Revenue Generated from
Franchise Fee versus Property Tax
HomeHomeCost per Home
MarketValueFranchisePropertyCost
ValueAfter MVEFeeTaxDifference
$ 140,550$ 115,959$ 66.00 $ 66.00 $ -
$ 200,000$ 243,326$ 66.00 $ 102.89$ 36.89
$ 257,400$ 243,326$ 66.00 $ 138.46$ 72.46
$ 350,000$ 344,260$ 66.00 $ 195.94$ 129.94
$ 500,000$ 500,000$ 66.00 $ 284.55$ 218.55
$ 750,000$ 750,000$ 66.00 $ 462.40$ 396.40
$ 900,000$ 900,000$ 66.00 $ 569.10$ 503.10
As you can see in the above chart, the impact to home owners for generating revenues of
$603,075 to home owners is typically less with a franchise fee verse increasing the City tax rate.
It should be noted that when the franchise fee is converted to a flat fee rate, then the rate does not
change over time. There is no inflation factor added annually. The only growth in the total fee
collected for the City would come from new development; such as what is planned to happen on
TCAAP.
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The staff memo for the June 17 work session included comments on the
need to move the street maintenance and trail rehabilitation expenses out of the PIR fund as these
are really operating expenses and not capital expenses. Moving this expense out of the PIR Fund
increases the chances that the General Fund transfer to the PIR Fund will be spent on the PMP
program. Since the General Fund cannot absorb these expenses without impacting other City
services, this funding of street and trail maintenance expenses with franchise fee revenues is a
top staff priority. Additionally, the equipment capital fund needs financial help and it is
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reasonable to have the franchise fee help pay for some of the equipment that does the street and
trail maintenance work.
The use of the franchise fees can change at any time depending on Council action, but the idea
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discussed on June 17 was to establish a separate fund for the franchise fees and only use the
fund for specific activities most of which would be capital in nature and/or infrastructure
related. While the use of the fund can be decided later, below is a list for the Council to consider:
Street Maintenance (seal coat and crack filling) $150,000 per year
Trail Rehabilitation $ 50,000 per year
Equipment Fund Contribution $ 40,000 per year
Park Equipment Replacement $ 60,000 per year
City Hall Reserve Maintenance/Improvements $100,000 per year
Reserve for future CIP expenses $203,075 per year
pathway system to help make the entire community accessible for walkers and bikers and to
connect our City to the regional systems that are near our boundaries. It should be noted that a
trail between Highways 96 and 51 along old Highway 10/Snelling could cost in excess of $2
million and a trail connection from the CR E bridge to the beach could be in excess of $1.5
million (and to extend the trail/pathway to the eastern or southern City limits would be another
$500,000 each). Pathways are important but they are also expensive!
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Additionally, on June 17 there were some comments made regarding dedicating some of the
franchise fee revenues toward public safety expenses.
In order to approve a franchise fee program, the City Council will need to
amend the existing Electric Franchise ordinance and the existing Gas Franchise ordinance. Both
of these ordinances were approved on November 30, 2009, and they granted the company rights
for a period of 20 years. No public hearing is required to amend these ordinances. After adoption
of the ordinances, Xcel will need at least 90 days to implement the franchise fee. Xcel will
collect the franchise fee revenues and make quarterly payment to the City.
While no public hearing is required for adoption of the franchise fee
ordinance amendment, the Council may want to consider accepting public comments on the
proposal as there are bound to be people for the program (especially if some funds are dedicated
to pedestrian pathways) and some people against the program.
Does the Council want to move forward with the franchise fee program? If so, at what
amount?
Does the Council like the flat fee method that is recommended by Xcel?
How does the Council want to take public comments on the proposal?
The electric classes of Small C&I Non-Demand and Small C&I Demand and the gas
class of Commercial Firm: Non-Demand are big contributors into the franchise fee fund;
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so what types of customers are in these classes? What information can Xcel provide us
on these customers?
Does the Council support financing street and trail maintenance and some equipment
with the new revenues?
Does the Council want to decide how to use the new revenues now or consider the issue
at a future meeting?
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Colette Jurek will be at the July 15 Council work session to provide information on franchise
fees, to answer questions that the Council has regarding a franchise fee program, and to review
the process for establishing a franchise fee program.
Attachments
Attachment A: Correspondence from Colette Jurek dated May 1, 2013.
Attachment B: Correspondence from Colette Jurek dated June 14, 2013.
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Attachment A
AGENDA ITEM
MEMORANDUM
DATE: July 15, 2013
TO: Honorable Mayor and City Councilmembers
Patrick Klaers, City Administrator
FROM: Terry Maurer, Public Works Director
SUBJECT: South Water Tower Logo and Color
Discussion
When the contract for the rehabilitation of the south water tower was awarded, the Council
decided, by consensus, that the south water tower should be painted the same color as the north
tower; tan rather than the current light blue. The Council also decided that two logos should be
painted on the south tower in the same color as the existing logos on the north tower. Generally,
it was discussed that the logos should be positioned to be visible from each direction of I-694.
The contractor for the south water tower rehabilitation, Classic Protective Coatings, has
submitted the attached two exhibits. The first shows the logo layout. The vertical face of the
tower is 20 feet tall. The logo will be approximately 46 feet wide and 19 feet tall. The colors are
exactly the same as the north tower including the paint manufacturer; Tenemec. The main tower
color is called Barbados and the logo color is called Serpentine.
The second exhibit shows the direction the logos will be facing on the tower and the approximate
surface area of the tower face that the logo will extend over. Finally, staff has added an aerial
photo showing generally which direction the two logos would face.
Attachments
1.Logo graphic
2.Plan view of tower showing logo direction and coverage
3.Aerial photo showing tower location and logo direction
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Attachment A
Attachment C
AGENDA ITEM
MEMORANDUM
DATE: July 15, 2013
TO: Honorable Mayor and City Councilmembers
Patrick Klaers, City Administrator
FROM: Jill Hutmacher, Community Development Director
SUBJECT: 2013 State of the City
Budgeted Amount: Actual Amount: Funding Sources:
$2,425.00 TBD EDA General Fund
Requested Action
Identify presentation topics for the 2013 State of the City event.
Discussion
Based on the Economic Development Commission recommendation, the City Council approved
Arden Bowl. Notice of the event has been posted on the Business News section of the City
page, advertisements in the Shoreview-Arden Hills Bulletin, City newsletter announcements, post
card mailings to businesses, and EDC Commissioner business visits.
In order to prepare for the event, the City Council is requested to identify presentation topics. At
the 2011 State of the City event, each Councilmember spoke on selected topics. The EDC
discussed presentation topics at the July 10, 2013, EDC meeting and recommends the following
for City Council consideration:
TCAAP Redevelopment Project
Demolition and remediation
o
Master Planning Process
o
B-2 District Improvements
Feasibility Study results
o
Schedule of improvements
o
Highway 51/Snelling Avenue Bridge
o
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Development Projects
Lexington Station
o
E Street Flats and Shoppes
o
Arden Village
o
Transportation Improvements
U.S. 10/Highway 96
o
I-694
o
Lexington Avenue/County Road F
o
The EDC discussed additional topics including City management/budget and parks/trails, but felt
that these topics are of less interest to the business community and the allotted time period can be
filled with discussion of development and transportation projects. The EDC also recommended
having a representative from MnDOT available to answer questions on transportation projects.
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AGENDA ITEM
MEMORANDUM
DATE: July 15, 2013
TO: Honorable Mayor and City Councilmembers
FROM: Patrick Klaers, City Administrator
SUBJECT: Respectful Workplace
Background
As previously discussed, a follow up to our May/June Council-Staff training on sexual
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harassment and hostile work environment is planned for this July 15 work session. Once again,
Sheila Krejci will be facilitating this training session.
Please bring to this work session your DiSC profile reports and the two multi-colored laminated
DiSC cards.
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