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HomeMy WebLinkAbout12-08-14-R ADEN HILLS Approved: February 9, 2015 CITY OF ARDEN HILLS, MINNESOTA REGULAR CITY COUNCIL MEETING DECEMBER 8,2014 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 7:00 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; Assistant City Engineer John Anderson; Community Development Director Jill Hutmacher; and City Planner Ryan Streff PLEDGE OF ALLEGIANCE 1. APPROVAL OF AGENDA MOTION: Councilmember Holmes moved and Councilmember Holden seconded a motion to approve the meeting agenda as presented. The motion carried unanimously(5-0). 2. PUBLIC INQUIRIES/INFORMATIONAL Steve Gericke, 1840 West County Road E, explained he came before the Council four months ago regarding his water bill. He indicated he received no response from the City to date and questioned if the Council or staff could provide him with a response. He questioned why the City had dropped the senior rate. Mayor Grant requested staff to respond to Mr. Gericke as soon as possible. He also requested staff to copy the City Council with the response. Director of Finance and Administrative Services stated that she would follow-up with Mr. Gericke. ARDEN HILLS CITY COUNCIL—DECEMBER 8, 2014 2 3. STAFF COMMENTS A. TCAAP Update Community Development Director Hutmacher stated staff and consultants are scheduling work for the regulations and policies component of the master planning process. The following schedule allows for City Council adoption of the TCAAP Redevelopment Code (TRC) by the end of February. Approval of the Comprehensive Plan Amendment could occur either on February 23, 2015, or shortly thereafter. December 8, 2014, Special Work Session at 5:30 pm, Community Room • Preview of Infrastructure Open House scheduled for December 9, 2014 • Master Plan Document December 15, 2014, Regular Work Session at 5:00 pm, Council Chambers • Panel Discussion with Multi-Family Developers • Town Center and Neighborhood Transition Zoning • Multi-Family Design Standards January 5, 2015, Special Work Session at 6:30 pm(following JDA meeting), Council Chambers • Design Standards for Retail, Office, Flex Office and Gateway Districts • Exterior Materials January 12, 2015, Special Work Session at 5:30 pm, Community Room • Preliminary Plat Review (Infrastructure) • Final Review Chapters 6-7 (Building Site Development Standards, Building Design Standards) January 20, 2015, Regular Work Session at 5:00 pm, Council Chambers • JDA Approval Process • Final Review Chapters 1-3 (Introduction, Components of the Code, Administration) • Ramsey County Response to Draft TRC and Future Land Use Map January 26, 2015, Special Work Session at 5:30 pm, Community Room • Final Review Future Land Use Map • Final Review Chapters 4-5 (Definitions, Permitted Uses) February 2, 2015, Special Work Session at 6:30 pm (following JDA meeting), Council Chambers • Final Gateway Planning Workshop o Presentation of Final Draft of TCAAP Redevelopment Code(TRC) o Final Comments and Revisions February 17, 2015, Regular Work Session at 5:00 pm, Council Chambers • Comprehensive Plan Amendment Discussion ARDEN HILLS CITY COUNCIL—DECEMBER 8, 2014 3 February 18, 2015, Special Planning Commission meeting at 6:30 pm, Council Chambers • Public Hearings o Final Master Plan document o TCAAP Redevelopment Code o Future Land Use Map February 23, 2015, Regular Meeting at 7:00 pm, Council Chambers • Approval of Master Plan • Adoption of TRC Community Development Director Hutmacher explained that additional regular meetings and special work sessions may be scheduled to discuss regulations and policies, the infrastructure study, and other TCAAP issues. 4. APPROVAL OF MINUTES A. October 13, 2014, City Council Work Session B. October 27, 2014, City Council Work Session C. October 27, 2014, Regular City Council Meeting D. November 3, 2014, City Council Work Session MOTION: Councilmember Holmes moved and Councilmember Werner seconded a motion to approve the October 13, 2014, City Council work session minutes, October 27, 2014, City Council work session minutes, October 27, 2014, regular City Council meeting minutes; and November 3, 2014, City Council work session 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 Approve Ordinance 2014-006 Adopting the 2015 Fee Schedule and Authorizing the Publication of the Ordinance Summary C. Motion to Approve 2015 Liquor License Renewals D. Motion to Approve 2015 Tobacco License Renewals E. Motion to Adopt Resolution 2014-067 Establishing Service Fee Charge for 2015 Residential Curbside Recycling Program F. Motion to Approve Pay Estimate for Round Lake Road#6 G. Motion to Adopt Resolution 2014-061 Receiving the Feasibility Report and Ordering the Public Hearing for the Venus/Crystal Neighborhood Improvement (2015 PMP) H. Motion to Adopt Resolution 2014-062 Receiving the Feasibility Report and Ordering the Public Hearing for the Grant, Noble, and Lake Lane Improvement (2015 PMP) MOTION: Councilmember Holmes moved and Councilmember Holden seconded a motion to approve the Consent Calendar as presented and to authorize ARDEN HILLS CITY COUNCIL—DECEMBER 8, 2014 4 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 have an opportunity to discuss ideas regarding the TCAAP development. Mayor Grant opened the public hearing at 7:11 p.m. With no one coming forward to speak, Mayor Grant closed the public hearing at 7:12 p.m. B. Truth-In-Taxation Hearing Director of Finance and Administrative Services Iverson provided the Council with a presentation on the 2015 budget and tax levy. She described the notices that were published for the Truth-In-Taxation Hearing and noted that tonight's presentation was available on the City's website. She then explained why property tax levels varied from year to year, due in part to property values, school district referendums, and special assessments, in addition to changes in federal and state law. Director of Finance and Administrative Services Iverson reported that property values in Arden Hills were on the rise. She discussed how this would impact the median value homeowner with the proposed 5.05% tax levy increase for 2015. She provided comment on the property tax valuation paperwork that was sent to each Arden Hills' property owner from Ramsey County. How the City's tax levies have changed from 2008 to 2015, along with how tax dollars are divided between the City, County, school district and other agencies was reviewed. Director of Finance and Administrative Services Iverson explained how property taxes were spent by the City for public safety, public works, parks and recreation, and other governmental expenses. She provided a tax rate comparison between Arden Hills and other communities in Ramsey County. She commended the Council for their work in keeping the City's tax rate low. Revenues and expenditures for 2015 were reviewed. She presented the key budget elements and noted the contracted expense for fire, police and dispatch services were all rising by approximately 5%in 2015. She asked for questions or comments from the Council. Councilmember Holden questioned why the fire contract was proposed to increase so dramatically in 2015. Director of Finance and Administrative Services Iverson reported this was the final year of the implementation for the duty crew. The City would now have a 24 hour, seven day a week, full- time fire department. ARDEN HILLS CITY COUNCIL—DECEMBER 8, 2014 5 Mayor Grant opened the public hearing at 7:46 p.m. Mr. Gericke was pleased that the City has been able to keep the levy increases over the past several years at or around 3%. He questioned if residents would be responsible for any expenses within TCAAP. Mayor Grant responded that the expenses to develop TCAAP would be billed back to the future developers of TCAAP. Chuck Martinsdale, 3473 Lake Johanna Boulevard, discussed the continued increases for the police and fire departments. He questioned if these expenses were audited. Councilmember Holden explained that the fire department's finances were audited on a yearly basis. She reported the fire department had three contributing cities which included Shoreview, North Oaks and Arden Hills. Further discussion ensued regarding the concerns Councilmember Holden has with the fire departments expenses. Mayor Grant believed that the Lake Johanna Fire Department was a value for residents when compared to other fire departments. Mr. Martinsdale thanked Ms. Iverson for the thorough report she provided to the residents. Councilmember McClung discussed the cost savings that the City would receive after the fire department duty crew was fully staffed. Mayor Grant closed the public hearing at 8:01 p.m. C. Resolution 2014-066, Adopting and Confirming Quarterly Special Assessments for Delinquent Utilities Director of Finance and Administrative Services Iverson stated that the City confirms delinquent utilities on a quarterly basis. She explained that all property owners with outstanding balances were sent a notice from the City. Those who have not made payment would have their outstanding balance assessed to their property taxes through Ramsey County with an 8% penalty. Staff recommended that the Council adopt a resolution confirming the quarterly special assessments. Mayor Grant opened the public hearing at 8:03 p.m. Chris Sears, 3815 New Brighton Road, indicated that he is a new resident in Arden Hills. He stated that after he purchased his home, he learned it had a delinquent utility balance. He has discussed this matter with staff and the previous homeowners. He questioned how he could get this balance paid so as not to have it assessed to his property taxes. Director of Finance and Administrative Services Iverson recommended that Mr. Sears use his escrow account from closing to pay off the outstanding utility balance prior to the end of December as this would ensure the outstanding balance was not assessed to the property. ARDEN HILLS CITY COUNCIL—DECEMBER 8, 2014 6 With no one else coming forward to speak, Mayor Grant closed the public hearing at 8:06 p.m. MOTION: Councilmember Holden moved and Councilmember McClung seconded a motion to adopt Resolution #2014-066 — Certifying the List of Delinquent Utility Accounts to Ramsey County. Councilmember McClung expressed frustration that so many of his fellow Arden Hills residents were delinquent on their utility accounts. He recommended that an article on this issue be placed in an upcoming City newsletter. Councilmember Holden agreed that residents should be paying their bills; however, the City was collecting an 8%penalty on all of the outstanding bills. The motion carried (5-0). 8. NEW BUSINESS A. Adoption of the 2015 Budget and Tax Levy Director of Finance and Administrative Services Iverson recommended that the Council adopt the 2015 Budget and Tax Levy. Councilmember Holden asked about the proposed cost of living adjustment (COLA) for employees. Director of Finance and Administrative Services Iverson stated that the proposed budget includes a 2% COLA for non-union employees. She noted that a 1.5% COLA would reduce the levy by$4,518. MOTION: Councilmember McClung moved and Councilmember Holmes seconded a motion to approve Resolution #2014-063 — Adopting the 2015 Budget in the amount of$17,829,554. Councilmember McClung stated that he was not happy about the increases in public safety; however, there is nothing the Council can do. He explained that he could support a 2.6% increase in the levy to cover the public safety increases, but he would not be able to support a levy increase beyond this amount. He reported that if a 2.6% levy increase were approved, this would leave the City with a $95,173 shortfall that would need to be covered by reserves or excess from the 2014 budget. He suggested that the Council support the budget at the reduced level. Councilmember Holmes explained that in the past the excess from a budget has been placed in the Capital Reserve Fund. She believed that these funds were needed to ensure street improvements and utility projects could continue to move forward in the City. For this reason, she would not support the reduced levy amount. She requested that the Council move forward with the 5.05% levy as recommended by staff. ARDEN HILLS CITY COUNCIL—DECEMBER 8, 2014 7 Mayor Grant commented that as the City ages, infrastructure improvements are becoming more necessary and are quite costly. Councilmember McClung indicated that the PIR fund had a healthy balance at this time to cover the projects planned for the coming years. Mayor Grant proposed the Council discuss this further as he could not support a 5% tax levy increase either. Councilmember Holden asked if staff had posted for the Parks and Recreation Programmer position. She questioned whether staff anticipated any additional salary savings in 2015. Director of Finance and Administrative Services Iverson stated that this position had been posted. She indicated that the staffing changes in Parks and Recreation should result in a savings of about $20,000 and that no additional savings in salaries was anticipated. Mayor Grant suggested that the finance intern position be removed from the budget. He believed that the department would become more efficient with the new finance software and electronic bill-pay coming on line. Director of Finance and Administrative Services Iverson commented that this would provide the Council with a gross savings of$17,224 on the overall City budgets. Councilmember Holden asked if the engineering intern was included in the 2015 budget. Director of Finance and Administrative Services Iverson indicated that this position had been included. Public Works Director Maurer discussed the work that was planned for the engineering intern in 2015. AMENDMENT: Mayor Grant moved and Councilmember McClung seconded a motion to remove the Finance Department Intern Position from the 2015 Budget. Councilmember Holmes supported the finance intern position, especially with the TCAAP development moving forward. The amendment failed 2-2-1 (Holmes and Werner opposed) (Holden abstained). Councilmember Holden supported the COLA increase at 1.5%. AMENDMENT: Councilmember Holden moved and Councilmember Holmes seconded a motion setting the Cost of Living Adiustment at 1.5% for 2015. ARDEN HILLS CITY COUNCIL—DECEMBER 8, 2014 8 Councilmember Holmes stated that because the compensation study was not yet complete, she supported the 1.5% COLA. The amendment carried 4-1 (McClung opposed). Councilmember Holden recommended that the HSA contributions to employee accounts be capped at $2,000. AMENDMENT: Councilmember Holden moved and Mayor Grant seconded a motion capping the HSA contribution by the City for each employee to $2,000 in 2015. The amendment carried (5-0). Councilmember Holden thanked staff for their efforts on the budget. She understood that the majority of the budget increases were related to public safety. She did not believe that any FTE's should be cut due to the high cost to attract and re-train employees. Mayor Grant commented that the Council has been discussing the 2015 budget since June of this year. He reported that after months and months of work, the Council was still trying to make cuts. Councilmember Holden questioned who would complete the work of the finance intern if the position were eliminated. Director of Finance and Administrative Services Iverson discussed the duties of each member within the Finance Department. It was her hope that new software programs would assist her department in streamlining several different processes. Councilmember Holden asked if the intern was serving both the finance and administrative departments. She asked how much more scanning work needed to be completed. Director of Finance and Administrative Services Iverson stated that this was the case and stated that there was a great deal of scanning work that remained. AMENDMENT: Councilmember Holden moved and Mayor Grant seconded a motion to add a .75 FTE for the Finance and Administrative Services department for 2015 for the purpose of scanning documents. Mayor Grant withdrew his second to the motion. The amendment failed for lack of a second. AMENDMENT: Councilmember Holden moved and Mayor Grant seconded a motion reducing the proposed Finance and Administrative Services department intern position from a .75 FTE to .25 FTE. The amendment carried 3-2 (Holmes and McClung opposed). Director of Finance and Administrative Services reviewed how the budget would be impacted by the Council's budget amendments. ARDEN HILLS CITY COUNCIL—DECEMBER 8, 2014 9 Further discussion ensued regarding the budget and where it stands at this point, given the amendments proposed by the Council. City Administrator Klaers proposed that the Council use reserves to balance the budget. Director of Finance and Administrative Services reported that the Council has reduced the budget by $20,374 through the budget amendments approved this evening. This would make the 2015 budget amount to be approved to be $17,809,180. The amended motion carried 4-1 (McClung opposed). MOTION: Councilmember Holmes moved and Mayor Grant seconded a motion to approve Resolution #2014-064 — Setting the Final Lew to Taxes Payable in 2015 to be $3,401,576. Councilmember McClung proposed an amendment to the levy and that the increase be capped at 2.6%with the remaining unallocated budget amount to be funded by reserves. AMENDMENT: Councilmember McClung moved and Councilmember Holmes seconded a motion capping the 2015 tax levy be $3,345,775 with the remaining unallocated budget amount to be funded by reserves. Mayor Grant estimated that the City would need approximately $70,000 in reserves to cover the budget shortfall. Director of Finance and Administrative Services explained that the tax levy would be decreased to $3,345,775. She reported that the amount that would be needed from reserves would be $74,799. Councilmember McClung indicated that the City has had overages for the last three years. He believed that this overage should be used to assist with budget expenses in order to reduce the tax levy amount. Mayor Grant commented that he could support the use of$30,000-35,000 in reserve funds but not $75,000. Councilmember Holmes agreed stating that she did not believe it made sense to balance a budget through reserves. She believed that the overage should be placed in the PIR fund. She indicated that residents wanted their streets improved and were willing to pay higher taxes in order for this work to get done. Councilmember Holden suggested that $50,000 be taken from reserves to balance the budget, which would set a levy amount of 3%. Mayor Grant suggested a friendly amendment requesting that only $35,000 from reserves be allocated in 2015. ARDEN HILLS CITY COUNCIL—DECEMBER 8, 2014 10 Director of Finance and Administrative Services reported that this would create a tax levy of $3,385,574. FRIENDLY AMENDMENT: Mayor Grant moved and Councilmember McClung seconded a motion recommending that only $35,000 be used from reserves in 2015, which would set the tax levy amount at $3,385,574. The friendly amendment failed 2-3 (Holden, Holmes and McClung opposed). The amendment failed 1-4 (Holden, Holmes, Werner and Mayor Grant opposed). Councilmember Holden requested further information on the cost of the police, fire and dispatch increases proposed for 2015. Director of Finance and Administrative Services stated that these increases totaled $86,118, which was 2.6%. AMENDMENT: Councilmember Holden moved and Mayor Grant seconded a motion increasing the tax levy by 3.1% in 2015 to an amount of$3,359,775. The amendment carried 3-2 (Holmes and McClung opposed). The amended motion carried 3-2 (Holmes and McClung: opposed). A. Adoption of the 2015 Employee Compensation Plan—Non-Union Employees Director of Finance and Administrative Services Iverson requested that the Council adopt the 2015 Employee Compensation Plan for non-union employees, which would set the COLA at 1.5% until the results of the compensation study were presented to the Council. MOTION: Councilmember Holden moved and Mayor Grant seconded a motion to approve the 2015 Employee Compensation Plan for non-union employees effective January 1, 2015, as presented and the Seasonal Employee 2015 Part- time scale as presented. The motion carried (5-0). B. Adoption of the 2015 City Contribution for Employee Benefits Director of Finance and Administrative Services Iverson requested that the Council adopt a Resolution that would set the City contribution for employee benefits per month to be $699.61 with a cap of$2,000 of HSA contributions, where applicable. MOTION: Councilmember Holden moved and Mayor Grant seconded a motion to adopt Resolution #2014-065 — Setting the City Contribution to Employee Monthly Benefits at the amount of$699.61 per month, per employee, with a cap of$2,000 of HSA contributions where applicable. The motion carried (5-0). ARDEN HILLS CITY COUNCIL—DECEMBER 8, 2014 11 C. Approve Purchase of Jet/Vac Vehicle Public Works Director Maurer recommended that the Council approve the purchase of a jet/vac vehicle. He explained that this purchase has been pushed back for a number of years and the City needs to move forward with this purchase. He indicated this was a necessary piece of equipment to keep the City's sewer lines clean and the current equipment was failing. Staff reviewed the State contract price for the truck and recommended Council approve the vehicle purchase. MOTION: Councilmember Holden moved and Councilmember Werner seconded a motion to authorize staff to order an Aquatect combination jet/vac truck through the State Contract from Flexible Pipe Tool Company, the State Contract vendor, in the amount of$328,444.98 including tax and registration. The motion carried (5-0). 9. UNFINISHED BUSINESS A. Comprehensive Plan Amendment — Comprehensive Sanitary Sewer Update— Kimley Horn Proposal Public Works Director Maurer reported that Kimley Horn had been asked for a proposal to assist the City with completing a Comprehensive Plan and a Comprehensive Sanitary Sewer update for the TCAAP property. The total cost for this project would be $52,240. Staff recommended that the Council approve the Kimley Horn proposal noting that the cost would be recovered through development fees on TCAAP. MOTION: Councilmember Holden moved and Councilmember McClung seconded a motion to accept Kimley Horn's proposal for the Comprehensive Plan Amendment and the Comprehensive Sanitary Sewer Plan Update in the amount of$52,240. Councilmember Holmes asked if this was a budgeted expense for 2014. Public Works Director Maurer stated that this expense would be refunded to the City through development fees of TCAAP. The motion carried (5-0). 10. COUNCIL COMMENTS Mayor Grant thanked Councilmember Werner for his four years of dedicated service to the City on the Council. Councilmember McClung stated that he has enjoyed working with Councilmember Werner over the past four years. Councilmember Werner stated that it was time for him to move on and he wished the Council well. ARDEN HILLS CITY COUNCIL—DECEMBER 8, 2014 12 Councilmember Holden encouraged all to attend the TCAAP Infrastructure Open House at the Ramsey County Public Works Building on December 91h from 4:00 to 6:00 p.m. in the Marsden Room. Councilmember Holmes reported that Planning Commission Chair Clayton Larson has resigned his position. She thanked Mr. Larson for his years of service to the City on the Planning Commission. She commented that the Planning Commission now had one open seat and two alternate seats vacant. Residents interested in serving in this capacity were encouraged to contact City Hall for further information. City Administrator Klaers indicated that the regular December 29th City Council meeting may be canceled and that a decision would be made next week. Councilmember McClung recommended that the meeting only be held if there were time- sensitive matters for the Council to address. ADJOURN MOTION: Mayor Grant moved and Councilmember Holden seconded a motion to adiourn. The motion carried unanimously (5-0). Mayor Grant adjourned the regular City Council meeting at 9:40 p.m. Patrick Klaers David Grant City Administrator Mayor