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HomeMy WebLinkAbout10-13-14-WS ADI'EN HILLS Approved: December 8, 2014 CITY OF ARDEN HILLS, MINNESOTA SPECIAL CITY COUNCIL WORK SESSION OCTOBER 13,2014 5:30 P.M. -ARDEN HILLS CITY HALL CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor Grant declared October 13, 2014, to be a non-holiday to conduct City business and called to order the special City Council work session at 5:35 p.m. Present: Mayor David Grant; Councilmembers Brenda Holden, Fran Holmes, and Dave McClung Absent: Councilmember Ed Werner(excused) Also present: City Administrator Patrick Klaers; Director of Finance and Administrative Services Sue Iverson; Assistant City Engineer John Anderson; Community Development Director Jill Hutmacher; City Planner Ryan Streff; Associate Planner Matthew Bachler; and City Clerk Amy Dietl 1. AGENDA ITEMS A. JetNac Truck Demo (Parking Lot) Assistant City Engineer Anderson provided the Council with a jet/vac truck demonstration in the City Hall parking lot. B. TCAAP Regulations and Policies • JDA Governance and Approval Process Discussions • Park Dedication Ordinance Discussion • Discuss Chapters 1-5 Michael Norton, JDA Attorney, stated that the Council was spending time establishing the City Code for the TCAAP property. He indicated that once the Master Plan and the TCAAP Redevelopment Code (TRC) were in place, the JDA would implement these documents based on recommendations by staff. Community Development Director Hutmacher stated that the City Council has previously discussed the TRC's Chapter 3 (Administration) which primarily addresses the JDA review ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION—OCTOBER 13, 2014 2 process. Based on City Council discussion and a review of the requirements of the Joint Powers Agreement, the City Attorney and the JDA Attorney have made proposed revisions to Chapter 3. Community Development Director Hutmacher indicated that for tonights meeting the City Attorney has prepared a memo outlining Minnesota Statutes regarding park dedication and how they apply to the City's acquisition of park land on TCAAP. City staff also requested City Council feedback on definitions (Chapter 4) and the Permitted Use Table (Chapter 5) specifically with regard to the definition and placement of single family residential, and small, medium, and large multi-family uses. Additionally, City Council feedback is requested regarding the possible revisions to Chapter 3. Councilmember Holden requested to see the comment tracker compiled by staff and the zoning consultant. Mayor Grant stated that as the draft TRC was changed, the Council may want to review the entire document again. Councilmember McClung explained that he had a very hard time following the document. He commented on the amount of time that had been spent by the Council and staff working on the TRC. He stated that he had expected to receive a redlined version of the document. Mr. Norton provided comment on the changes to Section 3.3. He noted that as issues arise, revisions will be required. Councilmember Holmes understood that staff was working hard on the Code; however, she believed it was extremely difficult to follow. She felt that more time would be needed to properly review and approve the Code. Councilmember McClung commended staff for their efforts on the Code, but agreed it was difficult for the Council to fully grasp the complexity of the Code in a timely manner. Mayor Grant recommended that the Council address higher level processes this evening and provide staff with feedback. He expressed concern with the 10-acre concept and the special development plan concept. He did not anticipate that developers were going to purchase a smaller single parcel for development. He requested further information on the special development plan concept. Community Development Director Hutmacher discussed the special development process with the Council. She noted that developers would be allowed greater flexibility when developing 10 acres or more but approvals would be required to have a 4/5 vote from the JDA. Councilmember Holden suggested that a portion of the zoning requirements remain static within the new developments. Community Development Director Hutmacher stated that staff could investigate this further. ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION—OCTOBER 13, 2014 3 Councilmember McClung asked if the Code had any language that would require developments to be reviewed by the City Council. Community Development Director Hutmacher explained that any variation from Section 3.4(b) would require City Council review and approval of changes to the TCAAP zoning code. Under the terms of the Joint Powers Agreement, the City will not approve specific projects, but could amend the code to allow projects to move forward. Mr. Norton commented that any request that would change the Master Plan would have to be reviewed by the City Council. He reported that if an applicant wanted something beyond what was allowed in the TRC, the applicant would be advised of the City Council's process to amend the Code. He then discussed the JDA's authority to govern the TCAAP site. Councilmember Holden understood these facts; however, it was her opinion that the TRC was the Council's only opportunity to protect the City. Mayor Grant did not support the fact that there could be a 10% variance on building heights. Councilmember McClung commented that the current draft gives the JDA limited flexibility and authority to do almost anything. He indicated that he needed to decide if he supported this philosophy or if additional restrictions should be put in place. Mr. Norton cautioned the Council from making the Code so restrictive that everything required review by the City Council. Mayor Grant believed that the Council needed to reach a point of agreement in regard to the governing section. At that time, the percentages, setbacks, building heights, etc. could be more closely evaluated. Mr. Norton requested that the Council provide staff with a list of discrete issues within the Code. As an example, it was his understanding that building height and setbacks were two areas of concern. Councilmember Holmes thought that setbacks were very important when looking at the big picture. She suggested that the Code be established before variances could be discussed. Mr. Norton suggested that the Council consider the basic standards within the TRC and then evaluate how far the JDA should be allowed to go to vary these standards. Councilmember Holmes questioned if the JDA could be given no discretion and that all requests are instead reviewed by the City Council. Mr. Norton indicated that this was not a possibility due to the fact that the City has allowed the JDA to exercise its zoning authority. He explained that limits could be set on the JDA while keeping all other processes in place. ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION—OCTOBER 13, 2014 4 Mayor Grant suggested that the language regarding special projects be tightened up. He reiterated that the JDA was made up of three residents of Arden Hills which could impact the 4/5 vote. Councilmember Holmes wanted all setback variances reviewed by the City Council in certain zoning areas. Councilmember Holden discussed the language regarding special projects and suggested that staff review the amount of leeway that would be allowed by the JDA. In addition, she was in favor of limiting the number of tilt-up buildings. She hoped to make TCAAP something special and not just a typical development. Councilmember McClung believed that the Council's greatest impact on TCAAP would be in regard to how the water feature and water runoff are managed. He would have to be comfortable with the Code in order to support it. He suggested that the 10-acre minimum for a special project plan be decreased. He reported that he couldn't support the current variability within Section 3.3 at this point. Mayor Grant summarized that the Council supported the 4/5's vote for special projects, but that the special project language needed further review. He believed that the Council wanted to further discuss the criteria that would trigger the requirement for further review. He stated that the Council supported the governance structure but needed to work on what would be allowed within the structure. Councilmember McClung asked how long the JDA approval process would stay in effect. Mr. Norton reported that the City and the County could agree to change the JPA at any time. He explained that when there is no more land for the County to sell, there would no longer be a functional use for the JDA; and at that time, the City and County could discuss making the authority"inactive". Mayor Grant asked the Council how they wanted to proceed with the Park Dedication Ordinance discussion. It was the consensus of the Council to review the memo from the City Attorney and to discuss this issue at a future work session. City Attorney Jamnik stated that state law provides the Council with the authority to require the dedication of land through the subdivision process and he advised the Council that the City Ordinance should be reviewed and updated. Mayor Grant adjourned the work session at 6:53 p.m. to a regular City Council meeting. Mayor Grant reconvened the work session at 8:13 p.m. C. 2015 Proposed Budget and Tax Levy Director of Finance and Administrative Services Iverson stated that in preparation for adoption of the final tax levy in December, the following information was included in the staff memo found in the agenda packet: recap of residential property values (the Council has had this information in ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION—OCTOBER 13, 2014 5 previous memos from staff), discussion on preliminary levy and budget, and the City's levy history and excess fund balance over the fund balance policy for comparison purposes. Director of Finance and Administrative Services Iverson explained that staff prepared detailed budget books for the Council for the September 22, 2014, work session. In response to Council requests for additional information at this work session, the following has also been provided in the staff memo: 1. Councilmember McClung's request for the dollar amount associated with the amount in the fund balance policy over 50% 2. Exact numbers on the insurance and benefit amounts, and the plans as currently offered according to the City's personnel policy(2014 Summaries) 3. Finance and Administrative Services duties, responsibilities, and workload. 4. Breakdown of the amount of increase in the 2015 proposed budget as a result of: a. COLA b. Step increases c. Benefits Director of Finance and Administrative Services Iverson stated that Staff is presenting a Preliminary General Fund levy increase of 5.0%per Council direction on September 22. Director of Finance and Administrative Services Iverson indicated that the 2015 preliminary budget has been prepared assuming a 2% wage adjustment for non-union staff and a 1.5% wage adjustment for union staff. In surveying surrounding communities most have included a 1.5% - 3.0% COLA increase in their preliminary estimates. The current proposed budget impacts for the General Fund are as follows: a. COLA $18,516 b. Step Increases $2,651 C. Benefits (includes dental, PERA, and payroll taxes. No increase in medical) $4,611 Director of Finance and Administrative Services Iverson explained that the results from the City Council authorized market and pay equity study should be available before the Council approves the final budget. The City's consultant has given staff a date of November 17th for providing the preliminary data. Director of Finance and Administrative Services Iverson stated that in November of 2010, the Council reorganized Finance and Administration into one department called Finance and Administrative Services and added the Finance Analyst position. This was done to allow additional capacity for the City Administrator to delegate duties to the Finance Director and to reduce the amount of backlog created in the Finance department each time a new intern came onboard. The Personnel Committee reviewed this proposal and recommended it to the City Council. ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION—OCTOBER 13, 2014 6 During the 2014 budget discussions, the Finance and Administrative Services department suggested eliminating the intern/student workers and replacing this with a permanent part-time position to give more continuity and eliminate the constant training period as interns/student workers were replaced causing backlogs and many times preventing staff from accomplishing projects and Council goals in a timely manner. Council chose at that time to deny this request and eliminated the intern/student workers from the department entirely. The 2015 budget does include the re-establishment of the intern/student workers in the department, but Council should be aware that this staff person is also a revenue source to the General Fund as an Administrative Service Charge to other funds — removing this expenditure will decrease the expenditure budget by $17,224,but it will also decrease the revenue budget by $10,831 making the total change $6,393. Director of Finance and Administrative Services Iverson explained that information on the preliminary budget and levy has been updated per Council direction at the September 22, 2014, work session, but staff has not prepared revised books at this time. Councilmember Holden discussed the supplemental data supplied by staff. She expressed frustration with the data the Council has received regarding the employee health insurance. She asked how many employees received health insurance through the City. Director of Finance and Administrative Services Iverson reported that the City has 27 employees receiving health insurance in 2014. Councilmember Holden recommended that the COLA in the budget be reduced to 1.5%until the Council can review the study. Director of Finance and Administrative Services Iverson stated that she could revise the budget to reflect a 1.5% increase. Councilmember McClung noted that if he did not have enough information by December, he would not be able to support the budget and tax levy. Further discussion ensued regarding the budget, employee health insurance and premium amounts. It was noted that the premium for family health insurance is more than double the cost of single health insurance. Councilmember Holmes expressed concern with the amount of money the City was paying for health insurance. Director of Finance and Administrative Services Iverson provided the Council with a brief history on the City's health insurance plans, premiums and expenses. Director of Finance and Administrative Services Iverson commented that in September of 2001, the City Council authorized all employees to receive Benefit Parity effective October 1, 2001. This meant that every employee would receive the same insurance payment benefit whether single or family coverage was taken. She provided the recommendation given at a September 2001 work session and the September 24, 2001, minutes when the policy was adopted. This ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION—OCTOBER 13, 2014 7 policy allows employees that select single insurance coverage to place the balance of the insurance payment that the City provides into an authorized deferred compensation program. Staff reviewed a chart illustrating the costs of coverage to employees per month for medical and dental since 2004 as well as the City's contribution amount. It was noted that the City has offered a co-pay plan (BCBS Aware Gold), but to reduce costs, the City tried a $300 deductible plan in 2007 and the high deductible plan with an HSA in 2008. Employees have had their choice of two plans since 2007. In 2009, the Council only allowed Benefit Parity if employees took the high deductible plan option to encourage employees to move from the co-pay plan to the high deductible plan. By 2013, all employees had switched to the high deductible plan and the City discontinued the co-pay plan and replaced it with another high deductible plan that had an embedded deductible amount for families. This plan had a much higher deductible for both single and family. Dental insurance is through Health Partners and in 2008 the City changed from single/family to single/single plus one/family which helped lower those costs. All union employees are on the union plan for medical and dental and pay the same whether they have single or family coverage. Director of Finance and Administrative Services Iverson explained that once the City offered the high deductible plans, the City was successful in reducing premium increases dramatically. The Council only allowing Benefit Parity if employees took the high deductible option was a big factor in shifting employees away from the co-pay plan. Some years (especially 2009, 2012, and 2013) the City only received rate increases as a result of a State Statute that governed small group plans. As a result, Lakes Country, the cooperative the City belongs to, gave the City dividends back since rates could not be lowered. The City received $24,288.74 in 2010 based on our 2009 claims history; $18,373.97 in 2011 based on 2010 claims history; and $9,118.73 in 2013 based on 2012 claims history. The City received a decrease in rates for 2011 as the cooperative went out for bids and was able to reduce costs based on the City's favorable claims history. While Lakes Country would like to see these funds distributed back to the employees on the plan, the City chose to put these monies aside to be used for wellness activities as these savings, or the reduced usage, was a direct result of wellness activities the City instituted in 2009 and employees managing their health care. Those funds have also been used to offset the City's share of insurance increases when levy limits were effective. Experience has shown that people use health services differently if they are on a co-pay plan versus a high deductible plan. The end result is lower rates based on usage history. Director of Finance and Administrative Services Iverson reported that surveys from surrounding employers (both large and small) show that the City of Arden Hills has had one of the most favorable experiences with health care costs. Most cities have been fighting double digit increases for many years. The surveys also show that the amount of monthly City contribution to employees range from $700 - $1,000. The City currently provides $699.61 per month per full- time employee for benefits (pro-rated for permanent part-time employees). Salary and benefits are looked at together when doing compensation packages so while some cities are rich in salaries, others are rich in benefits, and benefits play a key part in the recruitment of employees. The City's compensation study is taking into account both salary and benefits as a total package for the comparisons being made. The City's Benefit Parity approach is a common program for cities. ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION—OCTOBER 13, 2014 8 Councilmember McClung stated that he could not support the single health care members paying nothing for their health insurance. He did not believe that this was realistic and thought every employee should be contributing something to the plan. City Administrator Klaers discussed the philosophy behind the City's policy and benefits provided to single health care members. He commented that Arden Hills was not inconsistent with other municipalities on this topic. Councilmember Holden was not concerned with what other municipalities were doing. She explained that the health care industry was changing and for that reason, the City would need to reconsider its health care options. Councilmember Holmes was interested in how other cities managed their health care plans. Director of Finance and Administrative Services Iverson reported that this information would be included in the study. Councilmember Holden commented that she did not support paying $3,000 per year to employees that selected single health insurance. City Administrator Klaers asked if the Council would consider making a change for all future employees, as a policy change would impact the financial benefits of current employees. Councilmember Holden and Councilmember Holmes did not support this suggestion. Mayor Grant believed that health insurance should be viewed as a benefit and not as compensation. Director of Finance and Administrative Services Iverson reported that the City was trying to reduce its expenses for health insurance by selecting a plan with higher deductibles, while also reducing huge spikes in the budget when insurance costs rise. Councilmember Holden understood this to be the fact, but stated that the City was still paying a great deal for health care by supplementing people with funds in their health savings accounts. She recommended that the City put a cap on the funds going into HSA's. She requested that staff provide the Council with additional information on health insurance policy options. Director of Finance and Administrative Services Iverson stated that open enrollment would begin November 1, 2014. Staff needs some answers to give employees for them to make their health care decision and choices. Administrator Klaers suggested putting a $2000 cap on City contributions to employee HSA accounts. Councilmember Holden agreed for now with the $2000 maximum to HSA accounts. ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION—OCTOBER 13, 2014 9 The Council concurred with the understanding that this entire policy needs reevaluation in early 2016. Director of Finance and Administrative Services Iverson reconfirmed that the contribution rate by the City would remain the same as 2014, but with a limit of$2000 maximum to HSA accounts. 2. COUNCIL COMMENTS AND STAFF UPDATES None. ADJOURN Mayor Grant adjourned the special City Council work session at 9:19 p.m. �,, . CAom-� Amy Dietl 1 David Grant City Clerk Mayor ­-S EN HILLS Request for Special City Council Work Session A special meeting may be called by the Mayor or by any two Councilmembers. Topics for meeting: A. Jet/Vac Truck Demo(parking lot) B. TCAAP Regulations and Policies • JDA Governance and Approval Process Discussion • Park Dedication Ordinance Discussion • Discuss Chapters 1-5 C. 2015 Proposed Budget and Tax Levy Requested Date: 10/13/14 Requested time: 5:30 pm Open meeting X Closed meeting Signature of person(s) making request: hM4;11-2x4i 10/08/14 Mayor or Councilmember Date Councilmember Date -This section to be completed by City staff- Date received: CJ / / 1q Date meeting to be held: 10/13/14 Time of meeting: 5:30 pm Location: City Hall All necessary posting and notices have been completed. io / 9 / 14 Signature of City - -rk Date City of Arden Hills * 1245 West Highway 96 * Arden Hills,MN 55112-5743 Phone 651-792-7800 * Fax 651-634-5137 * www.cityofardenhills.org