HomeMy WebLinkAbout12-10-19-R ,.It
I��EN HILLS
Approved: January 14, 2019
CITY OF ARDEN HILLS, MINNESOTA
REGULAR CITY COUNCIL MEETING
DECEMBER 10,2018
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 Steve Scott
Absent: None
Also present: City Administrator Dave Perrault; Finance Director Gayle Bauman; Andy
Brotzler, WSB & Associates; Mike Mrosla, City Planner; and City Clerk Julie Hanson
PLEDGE OF ALLEGIANCE
1. APPROVAL OF AGENDA
Councilmember McClung requested Item 61 be pulled from the Consent Agenda for further
discussion as Item 7A.
MOTION: Councilmember Holden moved and Councilmember Holmes seconded a
motion to approve the meeting agenda as amended. The motion carried
unanimously (5-0).
2. PUBLIC INQUIRIES/INFORMATIONAL
Gregg Larson, 3377 North Snelling Avenue, spoke briefly regarding an article he saw in the
Shoreview Arden Hills Bulletin regarding a meeting that was held at the Ramsey County Public
Works Facility where the Civic Site was discussed. He stated he has not heard from the Council
what the need was for a Civic Center. He indicated the article spoke to the free land that would be
given to the City from the developer. However, he noted the City already had City-owned land
available that was near existing facilities. He encouraged the Council to consider using this land
versus locating up in Rice Creek Commons. He reminded the Council that there would be long-
term debt and operating expenses the City would have to cover for the proposed Civic Center. He
questioned if the Civic Site was a good deal and if there was a need in the community. He was of
ARDEN HILLS CITY COUNCIL—DECEMBER 10, 2018 2
the opinion the Council would not be acting in a fiscally conservative manner by taxing the public
to provide these services. He stated he would like to better understand how the Council saw there
was a need for a second Civic Site and how much the architect was costing the City.
Mayor Grant requested staff to provide Council with a response to this Public Inquiry at the next
Council meeting.
3. RESPONSE TO PUBLIC INQUIRIES
None.
4. STAFF COMMENTS
A. Rice Creek Commons (TCAAP)and Joint Development Authority(JDA) Update
City Administrator Perrault provided an update on TCAAP stating the Council held a Public
Forum on November 15. He estimated 50 people attended this meeting. He noted the City's
Communication Coordinator was tabulating the data collected from this meeting and explained
this information would be presented to the Council at a future worksession meeting.
City Administrator Perrault reported the December 3, 2018 JDA meeting was canceled. He
indicated the next meeting was to be determined by the JDA Chair. He explained the 2019-2020
JDA Chair appointment would be considered by the City Council next week.
B. Transportation Update
Andy Brotzler, WSB & Associates, reported the Old Snelling Trail was substantially complete.
He explained the trail was now open to the public. He noted only minor restoration and striping
work remained and would be completed in the spring of 2019.
Mr. Brotzler stated the bulk of the work for the 2018 Street Improvement Project was complete.
He indicated final paving and restoration would be completed next spring.
Mr. Brotzler explained the Snelling Bridge would be open to traffic yet this week.
Mr. Brotzler commented the Highway 96 traffic improvements were operational and in place.
Mayor Grant requested staff investigate the trail connection that occurs at McCracken and the
Old Snelling Trail to ensure there was a proper connection.
Councilmember McClung requested staff speak with Ramsey County and ask when the light at
Innovation Lane and County Road F would be operational.
5. APPROVAL OF MINUTES
A. October 24, 2018, Special City Council Work Session
B. November 5, 2018, Special City Council Work Session
ARDEN HILLS CITY COUNCIL—DECEMBER 10, 2018 3
C. November 13, 2018, Special City Council Work Session
D. November 13, 2018, Regular City Council
E. November 19, 2018 City Council Work Session
Councilmember Scott requested a change to the November 13, 2018 Regular City Council
meeting minutes under Item 8 noting the title should be changed to reflect a discussion that was
held regarding the tobacco age.
Councilmember Holden discussed several changes to the October 24 and November 19, 2018,
meetings and noted she had provided staff with her corrections.
MOTION: Councilmember Holden moved and Councilmember Holmes seconded a
motion to approve the October 24, 2018, Special City Council Work Session
meeting minutes as amended, November 5, 2018, Special City Council Work
Session meeting minutes, November 13, 2018, Special City Council Work
Session meeting minutes; November 13, 2018, Regular City Council meeting
minutes as amended; and November 19, 2018, City Council Work Session
meeting minutes as amended. The motion carried unanimously (5-0).
6. CONSENT CALENDAR
A. Motion to Approve Consent Agenda Item - Claims and Payroll
B. Motion to Approve Transfer of Fund Balance from General Fund to Capital
Equipment& Building Replacement Fund
C. Motion to Approve Resolution 2018-069 Extending Fire Protection Service
Contract with Lake Johanna Fire Department
D. Motion to Approve the 2019 Non-Union Employee Compensation Plan
E. Motion to Approve Resolution 2018-068 Accepting the Liability Coverage Limits
from the League of Minnesota Cities Insurance Trust (LMCIT)
F. Motion to Adopt Ordinance 2018-004 Approving the 2019 Fee Schedule and
Authorizing Publication of the Ordinance Summary
G. Motion to Approve Change Order No. 4 and Payment No. 6 —Northwest Asphalt,
Inc. —2018 Street and Utility Improvement Project
H. Motion to Cancel the December 24, 2018 Regular City Council Meeting
r ra tiefi t nppr- ye Reselttiaii nni 8 non
for-Commissions and Committees and Mayor-Pro Tem
J. Motion to Approve Resolution 2018-071 Approving Off-Site Gambling for
Merrick, Inc. at Flaherty's
K. Motion to Approve Payment No. 4 — Sunram Construction, Inc. — Johanna Marsh
Park Improvement Project
L. Motion to Approve Payment No. 1 — VEIT & Company — Old Snelling Bridge
Replacement Project
M. Motion to Approve Change Order No. 4 and Payment No. 7 — Sunram
Construction—Old Snelling Watermain and Trail Improvements Project
MOTION: Councilmember Holden moved and Councilmember Holmes seconded a
motion to approve the Consent Calendar as amended removing Item 6I and to
ARDEN HILLS CITY COUNCIL—DECEMBER 10, 2018 4
authorize execution of all necessary documents contained therein. The motion
carried unanimously (5-0).
7. PULLED CONSENT ITEMS
A. Motion to Approve Resolution 2018-070 — Appointing 2019 City Council
Liaisons for Commissions and Committees and Mayor Pro Tem
Councilmember McClung stated he would not be supporting the City Council appointments for
2019 as presented.
MOTION: Councilmember Holmes moved and Councilmember Holden seconded a
motion to Adopt Resolution 2018-070, Appointing 2019 City Council Liaisons
for Commissions and Committees and Mayor Pro Tem. The motion carried
4-1 (Councilmember McClung opposed).
8. PUBLIC HEARINGS
A. Quarterly Special Assessments for Delinquent Utilities
Mayor Grant indicated this was a regular, quarterly public hearing regarding delinquent utilities
and opened the public hearing at 7:19 p.m.
With no one coming forward to speak, Mayor Grant closed the public hearing at 7:20 p.m.
B. Special Assessment for Abatement of Nuisance at 3246 New Brighton Road
Finance Director Bauman stated on August 27, 2018, the Council approved Resolution 2018-
051 ordering nuisance abatement of 3246 New Brighton Road for excessive vegetation growth
and accumulation of tree branches. The resolution authorized the City to have the necessary
work completed to remediate the nuisance(s) and charge 125% of the cost of the work, including
administrative costs, back to the property owner. The charge to complete the work plus
administrative costs was 648.00.
Finance Director Bauman explained the property owner was properly notified by mail and given
thirty (30) days to remit payment. She stated that to date payment had not been received;
therefore, the City intended to certify these charges to Ramsey County to be collected with
property taxes.
Mayor Grant opened the public hearing at 7:21 p.m.
With no one coming forward to speak, Mayor Grant closed the public hearing at 7:22 p.m.
C. Truth-In-Taxation Hearing
Finance Director Bauman provided the City Council with a presentation on the 2019 budget and
tax levy. She explained a Truth in Taxation hearing was required yearly. She described why tax
ARDEN HILLS CITY COUNCIL—DECEMBER 10, 2018 5
bills change on a yearly basis and discussed how property tax values were set in Minnesota. She
commented further on the general fund budget, anticipated revenues and expenditures, the Capital
Improvement Plan, and the proposed 4% tax levy. She discussed resources available to residents
for property tax relief.
Mayor Grant commented in September the Council set the preliminary levy at 5% and noted this
has since been decreased to 4%.
Councilmember Holmes requested the Council provide the property tax increase information in
5% increments instead of 10% increments.
Councilmember Holden reported the information that was presented to the Council was
available on the City's website. She questioned what percentage of the levy increase would cover
Public Safety increases.
Finance Director Bauman stated she did not have this information available but estimated half
of the increase would go to cover Public Safety increases which amounted to approximately
$78,000.
Councilmember Holden commented the City has also added a Senior Engineering Tech position
as well as a Recreation Programmer position and noted these positions had been in place in the
past.
Councilmember McClung reported if property taxes increase by more than 12% homeowners
were eligible for a property tax refund from the State. He encouraged the County to run how
many residential properties were at 12%or greater.
Mayor Grant opened the public hearing at 7:44 p.m.
Chris Hughes, 3515 Snelling Avenue North, thanked the Council for their time. He stated he has
learned a lot about attending this meeting. He asked if Ramsey County tax statement was
prepared with a 5% levy increase.
Mayor Grant reported this was the case and noted residents would see a slight decrease in their
property taxes from the City if the 4% levy is approved.
Mayor Grant closed the public hearing at 7:45 p.m.
9. NEW BUSINESS
A. Resolution 2018-065 Adopting and Confirming Quarterly Special Assessments
for Delinquent Utilities
Finance Director Bauman stated delinquent utility amounts are certified to Ramsey County
quarterly. A list of utility accounts with a delinquent balance was compiled and notices dated
November 5, 2018 were mailed. These customers were informed of their delinquent status and
were asked to make payment of the delinquent balance by December 5, 2018. Utility accounts
ARDEN HILLS CITY COUNCIL—DECEMBER 10, 2018 6
with an unpaid delinquent balance after December 5, 2018 would be certified to Ramsey County
to be added to property taxes payable in 2019. The certification amount is equal to the unpaid
delinquent balance plus an eight percent penalty. It was noted the City will request that Ramsey
County levy the delinquent balances against the respective properties.
MOTION: Councilmember Holden moved and Councilmember Holmes seconded a
motion to adopt Resolution 2018-065 — Adopting and Confirming Quarterly
Special Assessments for Delinquent Utilities with Ramsey County. The
motion carried (5-0).
B. Resolution 2018-064 Adopting Special Assessment for Abatement of Nuisance
at 3246 New Brighton Road
Finance Director Bauman reported the Council held a public hearing regarding this matter and
requested adoption of a Special Assessment for the abatement of nuisance at 3246 New Brighton
Road.
Councilmember Holmes asked if this property had a previous special assessment.
City Administrator Perrault explained this was a special assessment for an abatement that was
approved by the Council in August.
MOTION: Councilmember Holden moved and Councilmember Holmes seconded a
motion to adopt Resolution 2018-064 approving special assessments related to
unpaid nuisance abatement charges for the property located at 3246 New
Brighton Road. The motion carried (5-0).
C. Adoption of the 2019 Budget and Tax Levy
• Approve the 2019-2023 CIP and Proposed Budget
• Resolution 2018-067 Adopting the Proposed 2019 Budget in the amount of
$13,972,990
• Resolution 2018-066 Setting the Final Tax Levy for Taxes Payable in 2019
in the amount of$3,938,420
Finance Director Bauman stated a budget workshop was held with the Council on August 20,
2018. Staff was not directed to make any changes to the proposed 2019 General Fund Budget and
Council adopted a maximum tax levy increase of 5% on September 10, 2018. Another budget
workshop was held with the Council on November 19, 2018, in which staff was directed to make
a few changes to the 5-year CIP and bring back a tax levy increase of 4%, reduced from the
maximum tax levy increase of 5% adopted in September. Staff reviewed the proposed budget in
further detail with the Council and recommended adoption of the 2019 budget and tax levy.
MOTION: Councilmember Holmes moved and Councilmember Holden seconded a
motion to approve the 2019-2023 Capital Improvements Plan and Proposed
Budget. The motion carried (5-0).
ARDEN HILLS CITY COUNCIL—DECEMBER 10, 2018 7
MOTION: Councilmember Holmes moved and Councilmember McClung seconded a
motion to adopt Resolution 2018-066 Setting the Final Tax Levy for Taxes
Payable in 2019 in the amount of$3,938.420.
Councilmember Holden indicated the proposed budget had a deficit predicted for 2019 and
requested comment on this from staff.
Finance Director Bauman explained initial projections show the City just over $200,000 in the
black for 2018 and these funds would be carried over to 2019.
Councilmember Holden questioned what the difference would be between a 3.5% and 4% tax
levy increase.
Mayor Grant commented this would only be a $20,000 difference.
Councilmember Holden stated she understood the majority of the increases in the levy were due
public safety increases. She questioned how the Council would manage a surplus in the coming
year.
Councilmember Holmes supported the Council placing all surpluses into the City's Capital
Funds.
Mayor Grant discussed the City's fund balance and financial policy for surpluses.
Finance Director Bauman commented further on the City's fund balance policy noting this
policy was in place because the City only received property taxes twice a year.
Mayor Grant requested that all future surplus transfers be completed shortly after the audit and
not at year end.
Councilmember Holmes stated she would have supported a tax levy at 5%given the fact the City
was operating at a deficit. She understood this would be made up through a surplus but did not
believe this was the best practice. She explained she supported the City having a balanced budget.
She reported the City had achieved a AAA bond rating which was related to the City's fund
balance. For this reason, she encouraged the City to not have an operating deficit and should
consider a 5%tax levy.
Councilmember McClung commented over the past three years, the City has used it surplus to
balance the budget. He commended the City for getting fairly close each year and for not
overtaxing its residents.
The motion carried 4-1 (Councilmember Holmes opposed).
MOTION: Councilmember Holden moved and Councilmember Holmes seconded a
motion to adopt Resolution 2018-067 Adopting the proposed 2019 Budget in
the amount of$13,972,990.
ARDEN HILLS CITY COUNCIL—DECEMBER 10, 2018 g
Councilmember Holmes commented on the budget numbers and described how the Council set
the levy based on revenues and expenditures. She explained the City will not have a windfall of
additional money due to the expenditures the City would incur for the Rice Creek Commons
development.
The motion carried (5-
10. UNFINISHED BUSINESS
None.
11. COUNCIL COMMENTS
Councilmember Scott stated last week he attended the grand opening for Jimmie's Old Southern
BBQ and Smokehouse. He also commented on the closing of the Perkins restaurant located in
Arden Hills.
Councilmember Scott invited the public to attend Breakfast with Santa at City Hall on Saturday,
December 15, 2018.
Mayor Grant noted he would be attending the Ribbon Cutting Ceremony for Jimmie's Old
Southern BBQ and Smokehouse on Tuesday, December 11 at 10:30 a.m.
Councilmember Holmes reported she would also be attending the ribbon cutting event.
Councilmember Holmes stated last Friday she and Councilmember Holden attended the Ribbon
Cutting Ceremony of Pet Evolution.
Councilmember Holden commented on the Civic Site and explained the developer had set aside
1.6 acres for a civic area. She reported the developer wanted the City to move City Hall to this
property. She indicated the City was not interested in this. She explained the Council was
interested in learning from the public if there was interest in putting a Civic facility on TCAAP.
She stated the Council has been doing its due diligence for the developer to see if there was
interest in a Civic facility. She explained she was pleased with the input that was gathered at the
Civic Site Open House.
Councilmember Holden described why Ryan Companies had pulled out from the TCAAP
development in 2008. She noted the property value dropped by 1/3 in 2007 because of the
economy and Ryan Companies could not make a deal given the $45 million price tag, and the
Army was unwilling to reduce the land cost.
Mayor Grant discussed the intent of the Civic Site Open House and stated he appreciated the
feedback that was provided at this event. He understood that the information that was gathered
would be presented to the Council at a future worksession meeting. He thanked the Task Force
for their time and service to the community.
ARDEN HILLS CITY COUNCIL—DECEMBER 10, 2018 9
ADJOURN
MOTION: Councilmember Holmes moved and Councilmember Holden seconded a
motion to adjourn. The motion carried unanimously (5-0).
Mayor Grant adj urned the Regular City Council Meeting at 8:21 p.
J 1 e Hanson David Grant
y Clerk Mayor