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HomeMy WebLinkAbout09-28-15-R 'It -fiIPENHILLS Approved: October 12, 2015 CITY OF ARDEN HILLS, MINNESOTA REGULAR CITY COUNCIL MEETING SEPTEMBER 28,2015 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, and Dave McClung Absent: Councilmember Robert Woodburn(excused) Also present: City Administrator Patrick Klaers; City Attorney Joel Jamnik; Director of Finance and Administrative Services Sue Iverson; City Engineer Terry Maurer; Assistant City Engineer John Anderson; Community Development Director Jill Hutmacher; City Planner Ryan Streff; Associate Planner Matthew Bachler; Finance Analyst Dave Perrault; Accounting Analyst Ashley Bertrand; and City Clerk Amy Dietl PLEDGE OF ALLEGIANCE 1. APPROVAL OF AGENDA Mayor Grant requested Item 6F be pulled from the Consent Agenda for discussion. Councilmember Holmes requested Items 6C and 6D be pulled from the Consent Agenda for discussion. MOTION: Councilmember McClung moved and Councilmember Holmes seconded a motion to approve the meeting agenda as amended. The motion carried unanimously (4-0). 2. PUBLIC INQUIRIES/INFORMATIONAL Warren Pakulski, 4545 Pleasant Drive, was interested in seeing the pond dredged at Highway 96 at Lexington Avenue due to the high number of cattails. He feared that the pond would be lost to cattails and the wildlife would be forced out. ARDEN HILLS CITY COUNCIL— SEPTEMBER 28, 2015 2 Assistant City Engineer Anderson reported that funds will be budgeted for pond maintenance in the next five years. He indicated that the City will be establishing a pond maintenance program in order to prioritize maintenance needs. Gregg Larson, 3377 North Snelling Avenue, addressed the Council regarding TCAAP. He encouraged Mayor Grant, Councilmember Holmes and Councilmember Holden to support the County's maximum buildout plan for the TCAAP site. He feared that the City was mistreating the County. He encouraged the City to act in the best interests of the community in order to make the entire development a success. He did not believe it was the Council's responsibility to make TCAAP look like the rest of Arden Hills. He recommended that the Council reconsider their plans for TCAAP in order to bring more residents, public transit, and commercial uses to the development. 3. PUBLIC PRESENTATIONS A. Mayoral Proclamation in Recognition of Patrick Klaers, City Administrator Mayor Grant read a proclamation in full recognizing City Administrator Klaers for his years of dedicated service to the City of Arden Hills. He presented City Administrator Klaers with a plaque. B. Mayoral Proclamation in Recognition of Terry Maurer, Public Works Director/City � Engineer Mayor Grant read a proclamation in full recognizing Public Works Director/City Engineer Maurer for his years of dedicated service to the City of Arden Hills. He presented Public Works Director/City Engineer Maurer with a plaque. 4. STAFF COMMENTS A. Rice Creek Commons (TCAAP) Update Community Development Director Hutmacher stated that the Metropolitan Council has notified the City that its application for the TCAAP Comprehensive Plan Amendment (CPA) is complete. The TCAAP CPA will be reviewed by the Community Development Committee on October 19, 2015, and considered for approval by the Metropolitan Council on October 28, 2015. The 60-day review period for the Metropolitan Council expires on November 1, 2015. B. State of the City Update Community Development Director Hutmacher stated that two State of the City events will be held this year: • Tuesday, September 29, 6:30 to 8:00 pm at City Hall, and • Thursday, October 1, 7:30 to 9:00 am at Flaherty's Arden Bowl. ARDEN HILLS CITY COUNCIL— SEPTEMBER 28, 2015 3 Community Development Director Hutmacher indicated that Councilmembers will give presentations covering Rice Creek Commons/TCAAP, development projects, transportation improvements, and more. Arden Hills businesses and residents are encouraged to attend one of the events (the presentations will be the same at both events). C. Fall 2015 Community Cleanup Day Update City Planner Streff reported that the fall cleanup day event is scheduled for Saturday, October 3, from 7 A.M. to 12 Noon. It will be held at the Ramsey County Public Works Facility at 1425 Paul Kirkwold Drive. The event is co-sponsored by the cities of Arden Hills and Shoreview and open to residents of both cities. Residents that participate in the event will pay a nominal fee based on the vehicle type and load they bring to the event. Cars will be charged $10; trucks, sport utility vehicles, and vans will be charged $25; and trailers 8'x10' or smaller will be charged $35. Oversized loads and trailers over 8'x10' will be subject to an additional charge. City Planner Streff explained that residents must remember to bring their ID and payment in the form of cash or check only. No credit cards will be accepted during this event. Notice of the fall cleanup day was included in the August/September issue of the Arden Hills Notes, advertised on the City's website, placed on the CTV Bulletin Board, and a flyer was mailed to all City residents. D. Transportation Update Assistant City Engineer Anderson stated that on Thursday of this week, the bridge at Highway 96 and I-35W will have beams set, and that the interstate will be closed overnight for this work. He commented that the deck for this bridge will be poured on October 9tn Assistant City Engineer Anderson reported that the County Road F bridge beams will be set on Friday evening of this week, and that the interstate will be closed overnight for this work. It was noted that the bridge deck would be poured on October 12'h. Assistant City Engineer Anderson indicated that the Venus/Crystal neighborhood will have base pavement placed on September 29h and curb on the final phase should follow the week of October 5th. 5. APPROVAL OF MINUTES A. August 31, 2015, Regular City Council MOTION: Councilmember McClung moved and Councilmember Holden seconded a motion to approve the August 31, 2015, Regular City Council meeting minutes as presented. The motion carried unanimously (4-0). 6. CONSENT CALENDAR A. Motion to Approve Consent Agenda Item - Claims and Payroll B. Motion to Approve Planning Case 14-018 Site Plan Review — Schumacher Accessory Structure—3180 Hamline Avenue N ARDEN HILLS CITY COUNCIL— SEPTEMBER 28, 2015 4 C. Motion to A,-.,„-oye Assignment of Development rgreem nt A,-de Plaza LLC C and Fr tt-lione h7 (; D. Motion to Appfove Assigniiient of Development Agreement Afden Plaza LLC and 14efn sphefe Restaufa t Paftnefs E. Motion to Approve MGA Access F. Motion to Aecept , G. Motion to Approve Resolution Authorizing the Application for Recycling SCORE Grant Funds From Ramsey County H. Motion to Approve Appointment of Sue Iverson as Acting City Administrator I. Motion to Approve Appointment of John Anderson as Acting Public Works Director/City Engineer J. Motion to Approve 2016-18 Agreement for Law Enforcement Services MOTION: Councilmember McClung moved and Councilmember Holden seconded a motion to approve the Consent Calendar as amended and to authorize execution of all necessary documents contained therein. The motion carried unanimously (4-0). 7. PULLED CONSENT ITEMS A. Accept Parks, Trails and Recreation Committee Member Resignation Mayor Grant indicated that there was no letter of resignation within the packet for the Council to accept. Councilmember Holden stated that a lengthy email was sent from Jennifer Stephens to City staff which contained her resignation submittal. Councilmember Holmes noted that she had read the email as well and believed that this should serve as notice of her resignation. Mayor Grant was in favor of tabling action on this item until the City received a letter of resignation from Ms. Stephens. MOTION: Mayor Grant moved a motion to table action on this item until the City received a letter of resignation from Jennifer Stephens. The motion failed 1-3 (Holden, Holmes and McClung opposed). MOTION: Councilmember Holmes moved and Councilmember McClung seconded a motion to Accept Parks, Trails and Recreation Committee Member Resignation. Mayor Grant requested that the email from Ms. Stephens be distributed to the entire City Council. The motion carried unanimously (4-0). ARDEN HILLS CITY COUNCIL— SEPTEMBER 28, 2015 5 B. Assignment of Development Agreement — Arden Plaza LLC and Frattallone LLC Councilmember Holmes requested further information regarding this item from staff. She believed that this item was important enough and should not have been on the Consent Agenda. Associate Planner Bachler discussed the proposed assignment development agreement between Arden Plaza, LLC and Frattallone, LLC. He noted that Arden Plaza, LLC has requested approval of two separate agreements in order to clarify certain terms and obligations between the parties. He reported that if these terms or responsibilities were not being met by Frattallone, LLC the City could then follow up with this property owner and would not have to be in contact with Arden Plaza, LLC. Councilmember Holmes expressed concern with being a part of this agreement. She believed that the agreement should only be between the two parties involved. She then provided further comment on the Release of Seller. City Attorney Jamnik discussed how the agreement came to the City. He advised that Arden Plaza, LLC was interested in selling two lots. He reported there was little in this transaction for the City but to provide a zoning letter. He commented that the City's involvement was only to provide this assistance and would therefore release the Seller from obligations and allow these to be transferred to the Purchaser. He was satisfied with the obligations spelled out within the agreement and did not believe the City would assume any undue risk. Councilmember Holmes expressed concern with why the Seller was requesting the City be involved. She feared that not all scenarios were planned for and questioned how the City would react to that situation in the future. She was in favor of the City not being involved in these agreements. Further discussion ensued regarding the terms and conditions within the agreements. Councilmember Holden asked what leverage the City had with the Purchaser. City Attorney Jamnik reported that the City had letters of credit with both Purchasers, as well as the right to assess both properties for any necessary improvements. Councilmember McClung suggested that staff review these agreements further in case there were additional items that needed consideration or rewording. City Attorney Jamnik noted that the parking spaces and striping were the only areas of most concern to staff at this time. He did not feel it was necessary to delay the agreements and closing for these issues. Councilmember Holden questioned why the Council should support this agreement if Frattallone, LLC has already closed on the sale of the property. ARDEN HILLS CITY COUNCIL— SEPTEMBER 28, 2015 6 City Attorney Jamnik was uncertain if Frattallone, LLC has closed or not as the City is not party to that information. Mayor Grant understood Councilmember Holmes' concerns, but did not believe the wording concerns should delay the agreements. Councilmember Holmes did not believe the agreements were necessary and should therefore not be approved. Mayor Grant commented that Hemisphere Restaurant Partners believed that the agreement is necessary and will not proceed without it. Therefore, the project will not move forward without the agreement in place. Associate Planner Bachler indicated that staff is still drafting the Development Agreement with Hemisphere for the Tavern Grill project. The parking and financial surety requirements will be addressed within this Agreement. MOTION: Mayor Grant moved and Councilmember McClung seconded a motion to Approve the Assignment of a Development Agreement between Arden Plaza, LLC and Frattallone, LLC. Councilmember Holden had trouble understanding why an agreement was necessary between Arden Plaza, LLC and Frattallone, LLC when the site was further along in the process. She understood why an agreement was necessary for Hemisphere Restaurant Partners. City Attorney Jamnik advised that the Seller had requested the assignment. Associate Planner Bachler provided further comment on the subdivision of Arden Plaza approved by the City in Planning Case 15-002 and how this resulted in two new parcels that Wellington Management is in the process of selling. Councilmember Holden requested further information on Exhibit A of the Frattallone's agreement. She feared that the requirements within this Exhibit were not properly spelled out within the PUD and she did not want the City getting into the middle of this situation. City Attorney Jamnik commented that the Council was not being asked to approve the terms of the assignment. Rather, the Council was being asked to consent and release it. Councilmember Holmes believed that the apportionment should be different. Mayor Grant questioned if changes could be made to the document with regard to the proposed apportionment in the future. City Attorney Jamnik reported that this was the case. Councilmember Holden asked if the City Attorney supported Council approval of the assignment agreements. ARDEN HILLS CITY COUNCIL—SEPTEMBER 28, 2015 7 City Attorney Jamnik believed that the City was adequately secured to make sure the promised improvements would be made by both Frattallone's and Hemisphere Restaurant Partners. The motion carried 3-1 (Holmes opposed). C. Assignment of Development Agreement—Arden Plaza, LLC and Hemisphere Restaurant Partners Councilmember Holmes requested further information on this item from staff. She believed that this item was important enough and should not have been on the Consent Agenda. Associate Planner Bachler discussed the proposed development agreement between Arden Plaza, LLC and Hemisphere Restaurant Partners. He noted that Arden Plaza, LLC has requested approval of two separate agreements in order to clarify certain terms and obligations between the parties, while also transferring a portion of the property for the development of the Tavern Restaurant. He reported that if these terms or responsibilities were not being met by Hemisphere Restaurant Partners, the City could then follow up with this property owner and would not have to be in contact with Arden Plaza, LLC. MOTION: Mayor Grant moved and Councilmember McClung seconded a motion to Approve the Assignment of the Development Agreement between Arden Plaza,LLC and Hemisphere Restaurant Partners. Councilmember Holden asked if the City would be charged by the City Attorney to prepare the assignment agreement documents. City Attorney Jamnik commented that the Seller prepared the documents and his review of the documents would be charged back to the Seller. The motion carried 3-1 (Holmes opposed). 8. PUBLIC HEARINGS None. 9. NEW BUSINESS A. Set Preliminary Levy and Establish Truth-In-Taxation Public Hearing Date for Proposed Taxes Payable in 2016 City Administrator Klaers stated that the proposed maximum tax levy needs to be approved by the City Council and certified to Ramsey County by the end of September 2015. The final 2016 tax levy amount is set by the City Council in December 2015, following the Truth in Taxation public hearing. The proposed maximum tax levy established by the City Council in September can be lowered in December but it cannot be increased in December. Accordingly, it is very important for the City Council to discuss the financial needs of the City before it establishes the proposed maximum levy amount. ARDEN HILLS CITY COUNCIL—SEPTEMBER 28, 2015 8 City Administrator Klaers explained that the Council last discussed the budget at a work session on August 17''. He discussed how the City's tax base would increase this year due to the Round Lake taxing district coming back onto the tax rolls. As discussed by the Council in August, a 3% increase in the tax levy was being proposed by staff. The balance of the PIR fund balance was noted and staff provided comment on the larger expenditures planned for 2016. Mayor Grant believed there was general agreement among the Council in August to direct staff to look at the budget and bring back a 3% levy. However, staff has brought to the Council a document with a 6.5% levy. Director of Finance and Administrative Services Iverson reported that staff did prepare a 3% levy as a starting point which includes the use of$280,000 in reserves. Councilmember Holmes asked if the City staffing situation with retirements would provide savings or would recruiting costs offset this. Director of Finance and Administrative Services Iverson believed that the savings would be minimal in 2015. However, the City might achieve some savings in 2016 depending upon the rate at which the new employees are hired. Councilmember Holmes did not understand why the City had a deficit of$200,000 within the budget. Director of Finance and Administrative Services Iverson reviewed the budget document with the Council in further detail noting expenditures outweighed revenues by $200,000 at this time. It was noted that the expenditures for 2016, included a$100,000 contribution to the PIR fund. Mayor Grant reminded the Council that single line items could be addressed in the future and that the Council was only being asked to approve the preliminary levy this evening. Councilmember Holden explained that she was unable to attend the August work session where the budget was discussed. She believed that a 3%tax levy was low. She supported increasing the tax levy until the budget can be reviewed further. She noted that when the budget is discussed in December there should be a better understanding regarding the impact new staff will have on the City. Councilmember McClung supported the tax levy remaining at 3%. Councilmember Holmes indicated that she supported the 6.5% suggestion in staff's memo. She believed that the proposed budget was well-reasoned. She indicated that the City will have increased costs for TCAAP and new staffing that would differ from 2015. She understood that Arden Hills' residents took advantage and enjoyed the City's parks and for this reason, she did not want to see cuts made in this area. Mayor Grant inquired if staff had looked into PIR spending reductions. ARDEN HILLS CITY COUNCIL— SEPTEMBER 28, 2015 9 Director of Finance and Administrative Services Iverson stated that 2016 expenditures were discussed at the July work session and that expenditures beyond 2016 would be discussed at a future work session. She commented that all other expenditures were status quo. Mayor Grant understood that police and fire expenses would remain constant and that staff would be receiving COLA. He reported that some neighboring communities were offering their employees 2.5% in COLA and not 3%. He was interested in the City staying within its means and not raising the tax levy higher than 3%. Councilmember Holden was interested in raising the levy to 4% and discussed how the new City Administrator and Public Works Director/City Engineer could impact the budget. She believed that the 4%tax levy would give the City a bit more leeway. Mayor Grant hoped that staff would be able to assist the Council in achieving the cuts that would be necessary to approve a 3%tax levy. Councilmember Holmes believed that staff has cut the budget to the bone and would not find any additional savings. She reported that the City has increased costs due to the fact that the City is growing. She did not support reduced contributions to the PIR fund. She recommended that the Council look at the budget more realistically and understand that additional cuts are not possible if the City wants to move forward. Councilmember Holden stated that it is up to the Council, not staff, to decide what no longer needs funding. She stated that perhaps the Council needs to review the budget further based on goals and priorities. Councilmember McClung commented that by setting the tax levy at 3% the Council would be setting goals and objectives. He indicated that the Council would then be forced to discuss its responsibilities and make adjustments before a final budget and tax levy could be approved in December. Councilmember Holmes indicated that a 6.5% tax levy increase is needed to support the City's identified needs. She reported that the final decision rests with the Council, and Council needs to determine what to cut if the levy is set at 3%. She stated that she does not believe that the Council is offering ideas to save money. Councilmember Holden suggested that the parks maintenance schedule be considered. She was in favor of reducing the public works staff by one seasonal employee and to have parks mowed every four days instead of twice a week. She requested that staff investigate these suggestions and provide Council with information on the cost savings. Councilmember McClung stated that he has offered cost savings measures, however, his ideas have not always been supported by the majority of the Council. Councilmember Holmes questioned how the Council should proceed since there is no agreement on the tax levy at this time. ARDEN HILLS CITY COUNCIL—SEPTEMBER 28, 2015 10 Mayor Grant reported he would not agree to a 6.5%tax levy. Councilmember Holden asked if he could support a 3.5%tax levy increase. Mayor Grant commented that he could support 3.5%this evening, but wanted to see this brought down before December. MOTION: Mayor Grant moved and Councilmember Holden seconded a motion to adopt Resolution #2015-041, Setting the Proposed Maximum Tax Lew at $3,478,775 (3.5%). Councilmember McClung indicated he would support a 3.5% tax levy increase in order to avoid this matter being drawn out further; however, he would not support a tax levy increase above 3% in December. The motion carried 3-1 (Holmes opposed). MOTION: Mayor Grant moved and Councilmember McClung seconded a motion adopting Resolution #2015-042, Establishing the Truth-In-Taxation Public Hearing Date for December 14, 2015. The motion carried (4-0). 10. UNFINISHED BUSINESS None. 11. COUNCIL COMMENTS Mayor Grant thanked City Administrator Klaers for his years of dedicated service to the City of Arden Hills. He wished him well in his retirement. He thanked Public Works Director Maurer for his expertise and wished him well in his retirement as well. Mayor Grant indicated that the TCAAP plan was being reviewed by the Met Council at this time. He did not believe that some sort of maximum number (1,700) of units should be considered, but rather that a variety of units should be the focal point in order to meet the needs of both young and old. He understood that TCAAP would not look like the remainder of Arden Hills as it would be very densely populated. It was his opinion that the City approved plan with 1,431 units would still be a great success. He reported that TCAAP would be more dense than both Minneapolis and St. Paul. He believed that the Council has done a reasonable job to come up with a reasonable plan for the TCAAP site. He commended staff for their efforts through the entire TRC and CPA approval process. He looked forward to moving forward with the City's approved plan. Mayor Grant encouraged the public to participate in the upcoming State of the City events. The first meeting will be held on September 291h at 6:30 p.m. at City Hall. He noted that another State of the City event would be held on Thursday, October 1St at 7:30 a.m. at Flaherty's Arden Bowl. He explained that the presentations provided at each event would be the same. ARDEN HILLS CITY COUNCIL—SEPTEMBER 28, 2015 11 Councilmember McClung wished City Administrator Klaers and Public Works Director Maurer well in their retirement and stated that they would be missed. Councilmember Holden thanked City Administrator Klaers and Public Works Director Maurer for their service to the City of Arden Hills. She also appreciated staff's efforts in honoring these two individuals. Councilmember Holmes appreciated the efforts of City Administrator Klaers and Public Works Director Maurer. She wished them all the best in retirement. City Administrator Klaers thanked the Council for their support. He stated that his time with Arden Hills was special due to the co-workers and the achievements that have been made with TCAAP. ADJOURN MOTION: Mayor Grant moved and Councilmember McClung seconded a motion to adjourn. The motion carried unanimously (4-0). May r Grant adjourned the regular City Council meeting at 9:09 p.m. N Ail "&j Amy Dietl David Grant City Clerk Mayor