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HomeMy WebLinkAbout12-09-13-R 'Tit �-A ,,EN HILLS Approved: January 27, 2014 CITY OF ARDEN HILLS,MINNESOTA REGULAR CITY COUNCIL MEETING DECEMBER 9,2013 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, Dave McClung, and Ed Werner Absent: None Also present: City Administrator Patrick Klaers; Director of Finance and Administrative Services Sue Iverson; Public Works Director Terry Maurer; Community Development Director Jill Hutmacher; and City Clerk Amy Died PLEDGE OF ALLEGIANCE 1. APPROVAL OF AGENDA Councilmember Holmes requested Item 5K be removed from the Consent Agenda and be discussed under Unfinished Business as Item 9B. MOTION: Councilmember Holmes moved and Councilmember Holden seconded a motion to approve the meeting agenda as amended. The motion carried unanimously (5-0). 2. PUBLIC INQUIRIESANFORMATIONAL None. 3. STAFF COMMENTS A. TCAAP Update Community Development Director Hutmacher stated that the City Council will review the first Master Plan draft at the December 16, 2013, work session meeting. The Joint Development ARDEN HILLS CITY COUNCIL—DECEMBER 9, 2013 2 Authority and the Planning Commission will review the draft on January 6 and 8, 2014, respectively. The next TCAAP open house is scheduled for Wednesday, January 22, 2014, from 5:30 to 7:30 pm in the Marsden Conference Room of the Ramsey County Public Works Facility. B. Transportation Update Public Works Director Maurer indicated that he spoke with MnDOT this afternoon and received an update. He was told that the signal at Round Lake Road and Highway 96 would be operational by the end of the month. The signal at Old Highway 10 and Highway 96 would not be operational until spring; however, the barrels will be pushed back and the two lanes of traffic in each direction along Highway 96 will be opening soon. i 4. APPROVAL OF MINUTES A. October 21, 2013, Work Session B. October 28, 2013, Regular City Council C. November 12, 2013, Work Session D. November 12, 2013, Regular City Council MOTION: Councilmember Holmes moved and Councilmember Werner seconded a motion to approve the October 21, 2013, work session minutes, the October 28, 2013, regular City Council minutes, the November 12, 2013, work session minutes; and the November 12, 2013, regular City Council minutes as presented. The motion carried unanimously (5-0). 5. CONSENT CALENDAR A. Motion to Approve Consent Agenda Item - Claims and Payroll B. Motion to Adopt the 2014 Employee Compensation Plan—Non-Union Employees C. Motion to Adopt the 2014 City Contribution for Employee Benefits D. Motion to Approve 2014 Liquor License Renewals E. Motion to Approve 2014 Tobacco License Renewals F. Motion to Approve Ordinance 2013-013 Adopting the 2014 Fee Schedule and Authorizing the Publication of the Ordinance Summary G. Motion to Approve the 2013 Capital Reimbursement to Lake Johanna Fire Department H. Motion to Approve the CAD and Mobile Data Agreement Among Ramsey County and Members 1. Motion to Approve South Water Tower Rehabilitation—Payment No. 3 and No. 4 J. Motion to Approve 2013 Sanitary Sewer Lining Improvement—Final Payment No. 3 L. Motion to Approve the Ramsey Conservation District Shared Service Agreement MOTION: Councilmember Holmes moved and Councilmember Holden seconded a motion to approve the Consent Calendar as amended removing Item 5K and ARDEN HILLS CITY COUNCIL—DECEMBER 9, 2013 3 to authorize execution of all necessary documents contained therein. The motion carried unanimously (5-0). 6. PULLED CONSENT ITEMS None. 7. PUBLIC HEARINGS A. TCAAP Development Discussion Opportunity for Residents Mayor Grant stated that under the Public Hearing section, citizens would have an opportunity to discuss ideas regarding the TCAAP development. Mayor Grant opened the public hearing at 7:12 p.m. With no one coming forward to speak, Mayor Grant closed the public hearing at 7:13 p.m. B. Delinquent Utilities Director of Finance and Administrative Services Iverson stated that delinquent utility amounts are certified to Ramsey County quarterly. A list of utility accounts with a delinquent balance was compiled and notices dated November 7, 2013, were mailed. These customers were informed of their delinquent status and were asked to make payment of the delinquent balance by December 3, 2013. Utility accounts with an unpaid delinquent balance after December 3, 2013, will be certified to Ramsey County to be added to property taxes and payable in 2014. The certification amount is equal to the unpaid delinquent balance and an eight percent penalty. The City will request that Ramsey County levy the delinquent balances against the respective properties. Mayor Grant opened the public hearing at 7:16 p.m. With no one coming forward to speak, Mayor Grant closed the public hearing at 7:17 p.m. MOTION: Councilmember Holden moved and Councilmember McClung seconded a motion to adopt Resolution #2013-049 — Adopting and Confirming Quarterly Special Assessments for Delinquent Utilities. The motion carried (5-0). C. Truth in Taxation Hearing Director of Finance and Administrative Services Iverson reported that in preparation for adoption of the tax levy, staff addressed the following information: preliminary tax levy, residential property values, operating budget, salary and benefit changes, and preliminary fund balance projections. I Director of Finance and Administrative Services Iverson stated that according to information provided by Ramsey County in May of this year, the median home value in Arden Hills will increase from $257,500 for 2013 taxes, to $264,700 for 2014 taxes which is a 2.8% increase in ARDEN HILLS CITY COUNCIL—DECEMBER 9, 2013 4 value compared to the county average increase of 0.2%. She provided the Council with examples on calculating property tax rates. Director of Finance and Administrative Services Iverson noted that according to Ramsey County, assessed values have declined for five consecutive years as a result of the recession and loss of financing liquidity, and had also been fueled by pessimistic buyer expectation. There are now encouraging signs that the markets have stabilized, or are stabilizing. We are now experiencing a slight increase in residential values, rising apartment values, and the commercial markets are also showing promise of appreciation but are still down. Foreclosures are at a lower percentage than they have been in many years. Director of Finance and Administrative Services Iverson explained that in order to evaluate the true impact to the residential property owner, you need to take into account the increase in fiscal disparities (increase of 5.8%) and the change in the taxable value (increase of 1.7% after exclusions). To help illustrate this, she reviewed a number of tables showing the impact to the residential property owner due to the increase in fiscal disparity dollars and changes in the assessed market value. This results in a net tax rate decrease of 2.1% before any levy changes are made. Director of Finance and Administrative Services Iverson reported that the Council would be holding a Truth-In-Taxation hearing this evening before adopting the final budget and levy. The proposed levy increase for 2014 was 3.1%. She reviewed the proposed levy amount in comparison to several neighboring communities. The key budget elements were then discussed. Staff reported that a final levy needs to be approved by the Council and certified with the County by December 26, 2013. Mayor Grant stated that New Brighton would be receiving $739,000 in LGA next year. This allowed New Brighton to reduce their levy for 2014. Councilmember Werner asked why surface water management would be increasing in 2014. Public Works Director Maurer explained that the future PMP's had significant storm sewer improvements planned. Also, the new MS4 permit regulations require significant technical analysis in updating the City's Storm Water Pollution Prevention Plan (SWPPP) and the City will need to hire a consultant to assist with this process. Mayor Grant requested a list of items that were removed from the 2014 budget. Director of Finance and Administrative Services Iverson explained that the Council directed staff to reduce expenses at their November 18th work session and eliminated Council meals, the estimated 2014 sales tax savings due to new legislation, Celebrating Arden Hills, and City Council national training expenses. She then reviewed the changes made to the transfers and the PIR fund. Mayor Grant questioned the number of FTE's for 2014. ARDEN HILLS CITY COUNCIL—DECEMBER 9, 2013 5 i Director of Finance and Administrative Services Iverson reviewed the minor staffing changes and reported that the City would remain steady with 32 FTE's, as was budgeted in 2013. Councilmember Holden noted that City unds for NYFS were not included in the 2014 budget. Y g Mayor Grant opened the public hearing at 7:49 p.m. Gregg Larson, 3377 North Snelling Avenue, discussed the lack of notice that was provided to the public for the Truth-in-Taxation hearing. He expressed frustration with why the City did not communicate this information to its residents. He questioned why notice was not posted on the City's website. He encouraged the Council to do better and increase the communication efforts between the City and the residents. Mayor Grant explained that all residents that received a tax statement from Ramsey County had information regarding this evening's Truth-in-Taxation meeting printed on the statement. Paul Trites, 1850 Indian Place, recommended the levy and budget be tabled given the lack of notice that was provided to the public. He was insulted by the Council's lack of communication. Mayor Grant commented that the Truth-in-Taxation hearing is held in December each year prior to adopting the budget, and notification is printed on the taxpayer's notice from Ramsey County. He reported that the agenda for this evenings meeting is posted on the City's website for the public to view. He thanked Mr. Trites for his comments and stated that the City would work to improve its level of communication with the public. Director of Finance and Administrative Services Iverson explained that the Truth-in-Taxation hearing date was set by the Council back in September. Mr. Trites questioned who he should contact regarding the lack of communication on the City's website. Mayor Grant encouraged Mr. Trites to email the City Administrator with his concerns. Russell Bertsch, 4419 Amble Circle, encouraged staff to further clarify the acronyms used within the staff report presented this evening. He explained that his property value went up 14% this year and his taxes rose 18%. This is a concern for him. He recommended that the City pursue additional business opportunities in the City to lessen the tax burden on the homeowners. He noted that he commutes along I-694 every day, and he expressed concern with the landscaping in this corridor and the required continual maintenance. Public Works Director Maurer explained that the I-694 program would be handled by MnDOT; however the City has set aside funds to potentially increase the landscaping near the neighborhood areas. The maintenance for these areas would be the responsibility of MnDOT. Landscaping decisions would be made in 2014. He then discussed the MS4 permitting process with Mr. Bertsch. ARDEN HILLS CITY COUNCIL—DECEMBER 9, 2013 6 Director of Finance and Administrative Services Iverson provided clarification on the acronyms used in her staff report. She commented that she would be available to discuss Mr. Bertsch's tax statement in further detail and recommended that he contact City Hall. Mark Kelliher, 3712 Chatham Court, stated that he was disappointed with the presentation this evening and questioned why the information was not available to the public. He supported the comments previously made by the residents and recommended that the Council work to increase the communication level between the City and the residents. Mr. Kelliher questioned why the City of New Brighton received over $700,000 in LGA. Director of Finance and Administrative Services Iverson explained that the calculations for LGA was quite complex and the funding was supposed to be a way for the State to share revenue between governments. She explained that New Brighton was an older city with older housing stock, which factored into their receiving LGA. She indicated that Arden Hills did not qualify for LGA as we are a newer community. Mr. Kelliher asked why public safety expenses were continuing to increase each year. Director of Finance and Administrative Services Iverson explained that the City of Arden Hills contracted its police services with Ramsey County. These rates are set by the County, along with dispatch rates. She reported that the City receives fire services from the Lake Johanna Fire Department and the City pays based on a formula that takes into account a number of factors on a three-year rolling average. There being no further comments, Mayor Grant closed the public hearing at 8:17 p.m. 8. NEW BUSINESS A. Resolution 2013-049: Adopting and Confirming Quarterly Special Assessments for Delinquent Utilities Director of Finance and Administrative Services Iverson stated that delinquent utility amounts are certified to Ramsey County quarterly. A list of utility accounts with a delinquent balance was compiled and notices dated November 7, 2013, were mailed. These customers were informed of their delinquent status and were asked to make payment of the delinquent balance by December 3, 2013. Utility accounts with an unpaid delinquent balance after December 3, 2013, would be certified to Ramsey County to be added to property taxes and payable in 2014. The certification amount is equal to the unpaid delinquent balance and an eight percent penalty. The City will request that Ramsey County levy the delinquent balances against the respective properties. MOTION. Councilmember Holden moved and Councilmember McClung seconded a motion to adopt Resolution #2013-049 — Adopting and Confirming Quarte rly Special Assessments for Delinquent Utilities. The motion carried(5-0). The motion to adopt Resolution#2013-049 was formally approved during discussion of Item 7B. ARDEN HILLS CITY COUNCIL—DECEMBER 9, 2013 7 B. Adoption of the 2014 Budget and Tax Levy City Administrator Klaers recommended that the Council discuss and adopt the 2014-2018 CIP, 2014 budget and final tax levy. I Councilmember McClung recommended that the levy be reduced by .92% by agreeing to items previously discussed in the staff memo. MOTION: Councilmember McClung moved and Mayor Grant seconded a motion to reduce the levy by an additional .92% by agreeing to remove the items from the levy as previously discussed and noted in the staff memo. Mayor Grant questioned if the levy should be approved as proposed and then be amended by the proposed reductions. Councilmember McClung withdrew his motion and Mayor Grant agreed. MOTION: Councilmember McClung moved and Councilmember Werner seconded a motion to approve the 2014-2018 CIP as presented. The motion carried (5-0). MOTION: Councilmember McClung moved and Councilmember Werner seconded a motion to adopt Resolution #2013-050 — Adopting the 2014 Budget in the amount of$15,122,345. AMENDMENT: Councilmember McClung moved and Councilmember Holden seconded a motion to reduce from the 2014 budget Council meals, estimated 2014 sales tax savings due to new legislation, Celebrating Arden Hills, and City Council national training costs, for a total reduction of$24,400 for a levy reduction of.76%. Councilmember Holmes expressed concern that the Northeast Youth and Family Services expense was not included in the budget. Mayor Grant requested the Council address the amendment on the floor before discussing another budget item. Discussion ensued regarding the budget and levy and the Council agreed to discuss the budget prior to setting the final levy. Councilmember Holden commented that she would not be extending work session meetings given the fact that meals would not be provided in 2014. Mayor Grant understood this concern and knew that Monday meeting days were long days. Councilmember McClung anticipated that staff could find the funding if meals were necessary for several of the work session meetings in 2014. ARDEN HILLS CITY COUNCIL—DECEMBER 9, 2013 8 The amendment carried (5-0). AMENDMENT: Councilmember McClung moved and Mayor Grant seconded a motion to restructure the budget to remove the transfers from the General Fund to the PIR therefore saving $5,000 which was a .16% savings to the levy. Councilmember Holden requested further information from staff regarding this matter. Director of Finance and Administrative Services Iverson explained that the budget had a structural imbalance and she indicated that maintenance items did not need to be covered by capital funds. Councilmember Holmes questioned why there was a $5,000 gain from the budget by removing the transfers. City Administrator Klaers discussed this matter in detail noting that in 2014, the PIP fund has $145,000 budgeted for streets and $50,000 for trails. He explained that these amounts nearly but not exactly matched the proposed 2014 budget transfer amount of $200,000. The difference results in a$5,000 savings in the budget. Councilmember Holmes stated that she did not support this motion. The amendment carried (4-1) (Holmes opposed). Councilmember Holden reported that the budget has now been reduced by $29,400 through the two amendments. The Council and staff were in agreement with this assessment. Councilmember Holden explained that the City would be receiving an invoice from Northeast Youth and Family Services in the amount of $14,500 for 2014. She recommended the budget reflect this expense. AMENDMENT: Councilmember Holden moved and Councilmember Holmes seconded a motion to amend the 2014 budget to include an expense in the amount of$14,500 for Northeast Youth and Family Services. Mayor Grant commented that this expense has been covered by private donations from St. Katherine's in the past but this would be an expense of the City in 2014. He indicated that Northeast Youth and Family Services was previously known as Northwest Youth and Family Services. Councilmember McClung questioned when the City was notified that St. Katherine's would not be covering this expense for Northeast Youth and Family Services. City Administrator Klaers stated he was awaiting official notification. However, he had been told that St. Katherine's donations were down and they did not know if they could make the contribution for 2014. I ARDEN HILLS CITY COUNCIL—DECEMBER 9, 201 3) 9 Councilmember Holden indicated that the City had no formal agreement with St. Katherine's and this organization did not have to make any official notification to the City. Councilmember McClung indicated that he would support this amendment. He suggested reserves be used to cover the expense. Councilmember Holden requested that the Council focus its discussion on the budget at this time. Councilmember Holmes asked what amount the budget would be reduced by if the proposed amendment were approved. Director of Finance and Administrative Services Iverson stated the budget would be reduced by $14,900, taking into account the earlier $29,400 reduction and the addition of $14,500 for Northeast Youth and Family Services. The amendment carried (5-0). AMENDMENT: Councilmember McClung moved and Mayor Grant seconded a motion reducing the Planning and Zoning FTE's by .5 FTE for a savings of $16,730. Councilmember Holden did not support this amendment. She explained that the City Planner was new to the City and with the TCAAP redevelopment the City would benefit from having both Mr. Bachler and Mr. Streff. Councilmember Holmes commented that the City used to have two planners. She asked when the proposed staffing change would take place. City Administrator Klaers commented that the proposed staffing change would take effect January 1, 2014. Councilmember Holmes thought it would be essential for the City to have two planners with the redevelopment of TCAAP. Councilmember McClung indicated that just because the City had two planners in the past, doesn't mean that two planners were needed today. He explained that TCAAP would be reimbursable expenses and a full-time employee was not necessary. It was his opinion that the services could be contracted out. He anticipated that the Council may need to consider a Planner I position for the 2015 budget. Mayor Grant stated that he could argue both sides of this issue. He stated that Matthew Bachler has worked well for the City and was familiar with Arden Hills. However, adding an FTE at this time may be a bit premature. Councilmember Holden questioned how the City would be able to hire the necessary consultants to complete the planning work on behalf of the City for under$16,000. ARDEN HILLS CITY COUNCIL—DECEMBER 9, 201 3) 10 Community Development Director Hutmacher discussed the workload and activities managed by the Planning and Zoning department. She estimated that the Planning and Zoning department work capacity would be reduced by 33% if Mr. Bachler were let go. She stated that only urgent items could be completed by the department if the staffing level was reduced. Councilmember Werner opposed this amendment for the reasons stated by staff. The amendment failed (1-4) (Holden, Holmes, Werner and Mayor Grant opposed). AMENDMENT: Councilmember McClung moved and Councilmember Holden seconded a motion removing the Finance and Administrative Permanent Part-Time Position for a savings of$6,671. Councilmember Holmes requested further information on the interns and part-time employees used by the Finance and Administrative department. Director of Finance and Administrative Services Iverson explained that she was proposing to have no interns in 2014, but instead, would have a part-time position to assist in the finance department. She noted that in the past she has had 1.5 FTE's in interns. Councilmember McClung expressed frustration with the lack of clarification from staff on the number of FTE's currently working for the City of Arden Hills. Director of Finance and Administrative Services Iverson indicated that the City currently has 26 full-time employees. With seasonal employees and interns, the number of FTE's increased to 32 in both 2013 and 2014. Councilmember Holden clarified that staff was attempting to reduce the number of interns by suggesting the hire of a permanent part-time employee to assist with meeting the needs of the Finance and Administrative Services departments. Mayor Grant questioned the total budget impact of the proposed permanent part-time Finance position. Director of Finance and Administrative Services Iverson stated that the total budget impact would be approximately a $26,600 increase, but the General Fund budget impact was a $70 decrease as this position is spread across funds and there were funds in the 2013 budget. City Administrator Klaers commented that if this position was removed, he requested that the Council consider adding some or all of the interns back into the Finance and Administrative Services department. This would come at an expense of$17,000. Councilmember Holmes asked why staff was requesting a permanent part-time employee over the interns. ARDEN HILLS CITY COUNCIL—DECEMBER 9, 2013 11 Director of Finance and Administrative Services Iverson explained that staff was spending a great deal of time training the interns as they come and go from the City. She commented that a permanent part-time employee would stabilize the staffing in the Finance Department. In addition,the training would only have to be completed once. Mayor Grant supported adding back the interns as he did not want to see a regular part-time employee added. Councilmember Holden called the question. The amendment carried (5-0). AMENDMENT: Councilmember McClung moved and Councilmember Werner seconded a motion to remove the Engineering Intern for a General Fund savings of$2,584. Public Works Director Maurer stated that this position was not a position of need, but would allow for a specific project to be completed by his department. He wanted to have all paper as- builts made electronically available to his department. He stated that if this was not approved, he would request approval from the Council at a future time. Councilmember Werner questioned the expense for this .5 FTE to the City. Director of Finance and Administrative Services Iverson indicated that the total expense for the .5 Engineering FTE would be $12,918. The intern would be paid $10 per hour for six months and no benefits would be provided. Councilmember McClung stated that this was not a crucial item that had to be completed and he did not support the staffing expense. The amendment failed (2-3) (Holden, Holmes and Mayor Grant opposed). Councilmember Holmes requested that the Council discuss the 1.5 FTE interns for the Finance Department due to the fact the Council eliminated the permanent part-time position. She indicated that staff estimated the expense for the interns to be $17,000. AMENDMENT: Councilmember Holmes moved to add $4,250 to the General Fund budget for 1.5 FTE's for the Finance and Administrative Services Departments. The amendment motion failed for lack of a second. Councilmember Holden inquired what a.5 intern FTE cost the City. Director of Finance and Administrative Services Iverson stated that the expense for the entire budget would be $10,400 plus FICA. This would cost a total of about $13,000. ARDEN HILLS CITY COUNCIL—DECEMBER 9, 2013 12 Councilmember Holden understood that the interns were not only working in the Finance Department but also in Administrative Services. She recommended that a .5 FTE intern be approved for the Finance Department. AMENDMENT: Councilmember Holden moved and Mayor Grant seconded a motion to approve a .5 FTE intern for the Finance and Administrative Services Department at an expense of$13,000. Councilmember Holmes questioned why the Council was proposing to reduce the FTE's from 1.5 to .5. Councilmember Holden explained that the budget had already reduced the position to a .5 permanent part-time position. Councilmember Holmes did not understand why the Council was punishing the Finance Department by reducing their staffing level. Councilmember Holden asked when was the last time the Finance Department actually used the 1.5 FTE's in interns. Director of Finance and Administrative Services Iverson stated that it had been in 2012. She indicated that consultants were used last year for assistance. Mayor Grant called the question. The amendment failed (2-3) (McClung, Werner and Mayor Grant opposed). Councilmember Holmes commented that the Finance Department would have no interns at this time. AMENDMENT: Councilmember McClung moved to remove the following items from the 2014 budget: Finance and Administration Tuition Reimbursement for $3,100; Finance and Administration Training and Conferences for $2,000; Planning and Zoning National Conference for $1,200; TCAAP Professional Consultants for $10,000; Park Maintenance Training Conferences for $500; and Street Maintenance Training Conferences for$500. The motion failed for lack of a second. AMENDMENT: Councilmember McClung moved to direct the City Administrator to find savings of $83,000 in the General Fund Budget. The motion failed for lack of a second. Councilmember Holden understood the last motions, but she believes training and conferences are valuable to the City's employees. She believes the budgeted amounts to be reasonable. She requested further information on the expense budgeted for the professional consultants. ARDEN HILLS CITY COUNCIL—DECEMBER 9, 2013 13 Community Development Director Hutmacher commented that the Red Fox/Grey Fox area was proposed to have a study completed. She explained that the expenses for the TCAAP development were uncertain at this time. AMENDMENT: Councilmember Holden moved and Mayor Grant seconded a motion to reduce the Professional Consultant expense for Planning and Zoning to $10,000. The amendment carried (3-2) (Holmes and McClung opposed). Councilmember Holmes expressed concern with the fact that the Finance and Administrative Services Department would have one less staff member to assist with completing their work in 2014. Councilmember McClung indicated that he has had a number of residents speak to him regarding the budget along with the proposed increase in the levy. He reported a good portion of the levy increase was due to public safety. He supported the work completed by the public safety departments and the implementation of the full-time duty crew. He wanted to see the Council remove an additional $92,000 from the budget. Councilmember Holden expressed confusion with the fact that additional cuts were not discussed previously by the Council. It was her opinion that the City has been running quite lean, while still offering quality services to its residents. She stated that roads still needed to be fixed and parks needed to be mowed. She explained that there was a $52,000 increase to public safety that had to be covered by the City. Mayor Grant discussed the Arden Hills' tax rate in comparison to other communities in Ramsey County. He indicated that Arden Hills was doing well given its size and structure. He wanted to see the Council continue to be good stewards of the City's funds. It was his opinion that the Council was moving forward with a fair budget while still meeting the needs of its residents. Councilmember Holden reviewed the improvements made at Valentine Park. She commented that this opportunity presented itself and the residents in Arden Hills were greatly benefiting from the park improvements. Mayor Grant requested that the Council take action on the budget at this time. He requested an updated amount from staff. Director of Finance and Administrative Services Iverson stated that the budget would have a net decrease of$31,571 based on the amendments approved by the Council this evening. The motion with amendments carried (4-1) (McClung opposed). Mayor Grant requested that the Council now discuss the levy impacts for the Northeast Youth and Family Services expense. ARDEN HILLS CITY COUNCIL—DECEMBER 9, 2013 14 Councilmember Holmes was proud that the Council was not proposing to dip into reserves to cover its expenses in 2014. She was in favor of having the Northeast Youth and Family Services expense become a General Fund expense. Councilmember McClung was of the opinion that the Northeast Youth and Family Services expense be a reserve expense as it was not anticipated. He recommended that this item be placed in the budget for 2015. City Administrator Klaers commented that the budget was amended by $31,571 and these expenses were all to the General Fund. He indicated the Council could reduce the levy by this amount and the levy increase would be about 2.0%. MOTION: Councilmember Holden moved and Councilmember Holmes seconded a motion to reduce the levy increase by $31,571 to $66,226 which would be a levy increase of approximately 2.08%. The motion carried (4-1) (McClung opposed). MOTION: Councilmember McClung moved and Councilmember Holden seconded a motion to extend the meeting to allow the Council to discuss Item 9A. The motion carried (5-0). 9. UNFINISHED BUSINESS A. Round Lake Road Area Feasibility Report Public Works Director Maurer stated that at the July 29, 2013, Council meeting, the Council hired Elfering & Associates to prepare a feasibility report for the reconstruction of Round Lake Road. Through research of City files of past actions in this area, staff found feasibility reports from 1997 and 1998 that discussed virtually the same improvements and proposed assessments to the benefitted properties but for various reasons did not advance beyond the study phase. Staff also found a Development Agreement dated March 4, 1998, between the Arden Hills Economic Development Authority and Welch Development Company, LLC. That agreement anticipated the improvement to Round Lake Road and that the properties covered by the agreement would be included in the assessment. Based on this information, staff asked Elfering and Associates to review the condition of Gateway Boulevard and Gateway Court to determine if any street improvements were needed on these streets. Public Works Director Maurer explained that the feasibility report fully discusses the proposed improvements to Round Lake Road and recommends a mill and overlay to both Gateway Boulevard and Gateway Court. Funding for the proposed improvements is recommended through a combination of assessments in accordance to the City's Assessment Policy, Water Utility and Surface Water Management funds and remaining Tax Increment Fund (TIF), Municipal State Aid (MSA) Funds and/or Permanent Improvement Revolving (PIR) Funds. Kristie Elfering from Elfering and Associates was in attendance at Monday's Council meeting to provide a brief presentation of the report. ARDEN HILLS CITY COUNCIL—DECEMBER 9, 2013 15 Public Works Director Maurer indicated that in order to move this project forward to construction in 2014,three actions are required of the Council. These three actions are: 1. Adopt Resolution 2013-044 Ordering the Preparation of a Feasibility Report for Round Lake Road, Gateway Boulevard and Gateway Court. This is a necessary step in MN Statute 429 in order for assessments to fund a portion of the project cost. 2. Adopt Resolution 2013-045 Receiving the Feasibility Report and Ordering a Public Hearing Held on January 27, 2014. 3. Adopt Resolution 2013-046 Ordering Preparation of Plans and Specifications for the Proposed Improvements. Elfering and Associates has provided the attached scope of services and estimated hourly cost not to exceed $127,500 for the preparation of plans/specifications, acquiring necessary permits and plan approvals, and to proceed through bidding, Public Hearing and Assessment Hearing. Beginning work on the plans before the Public Hearing will allow time for permit application and agency reviews while still allowing a spring 2014 bid date. Kristie Elfering, Elfering & Associates, thanked the Council for their time. She reviewed an aerial of the project area and discussed the proposed Round Lake improvement project. She provided a list of the proposed utility improvements and explained that this project has been discussed with the affected business owners. She reported that the project would cost $2,016,305 and included lighting, street, storm sewer and watermain improvements. She explained that 70% of the project would be assessed. The funding sources for the project were discussed in detail. Councilmember Holden recommended that the property at 1771 be considered for assessment within the proposed project. Public Works Director Maurer commented that this could be added at a future time and would assist in reducing the City's expense. He indicated that this property was not originally included due to the fact there was no building on the property. However, he would make a change if directed by the Council. Discussion ensued regarding assessment policies for buildable lots. Public Works Director Maurer commented that the 26 acre large lot (the Chesapeake property) was not included in the improvement project either. He stated that if the property were to develop in the future, a fee would have to be paid to the City to assist in covering the cost of the improvements. Councilmember Holmes expressed concern with the proposed assessment levels. MOTION: Councilmember Holden moved and Councilmember McClung seconded a motion to adopt Resolution #2013-044 — Ordering the Preparation of the Round Lake Road, Gateway Boulevard and Gateway Court Feasibility Report. The motion carried (5-0). ARDEN HILLS CITY COUNCIL—DECEMBER 9, 2013 16 MOTION: Councilmember Holden moved and Councilmember Werner seconded a motion to adopt Resolution 92013-045 — Receiving the Round Lake Road, Gateway Boulevard and Gateway Court Feasibility Report and Ordering the Public Hearing for January 27, 2014. The motion carried (5-0). MOTION: Councilmember Holden moved and Councilmember McClung seconded a motion to adopt Resolution #2013-046 — Ordering Preparation of Plans and Specifications for the Round Lake Road, Gateway Boulevard, Gateway Court Improvements. The motion carried (5-0). B. County Road E—B2 District Feasibility Report Councilmember Holmes recommended action on this item be tabled to the next Council meeting. Councilmember Holden requested this be tabled to a Council work session to allow for further discussion and questions. Councilmember Holmes was in favor of bringing the item back to a future Council meeting. Public Works Director Maurer commented that the Council will have ample time to discuss this project as it will not be completed until 2015. MOTION: Mayor Grant moved and Councilmember Holmes seconded a motion to table action on the County Road E — 132 District Feasibility Report to a future Council meeting. The motion carried (5-0). 10. COUNCIL COMMENTS Councilmember Holden recommended that future Truth-in-Taxation meetings be published in the local paper, along with the City's newsletter. She wanted to make sure the public was made aware of the meeting date. Director of Finance and Administrative Services Iverson indicated that it was no longer statutorily required for the City to publish the meeting date in the local paper. Mayor Grant suggested that the City publicize the Truth-in-Taxation meeting better in the future. He was pleased with the comments made by the public this evening and the budget work completed by the Council. City Clerk Dietl questioned if a member of the Council would be able to attend an employee recognition meeting on December 18, 2013. Councilmember Holden volunteered to attend the meeting. ADJOURN ARDEN HILLS CITY COUNCIL—DECEMBER 9, 2013 17 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 10:40 m. Amy Died Da id Grant City Clerk Mayor i