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HomeMy WebLinkAbout06-25-07 Minutes for Approval -ARkEN HILLS Approved: CITY OF ARDEN HILLS,MINNESOTA REGULAR CITY COUNCIL MEETING MAY 29,2007; 7:00 P.M. ARDEN HILLS CITY COUNCIL CHAMBERS PLEDGE OF ALLEGIANCE CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor Stan Harpstead called to order the regular City Council meeting at 7:00 p.m. Present: Mayor Stan Harpstead, Councilmembers David Grant, Brenda Holden, David McClung, and Fran Holmes. Absent: None. • Also present were City Administrator, Michelle Wolfe; City Attorney, Jerry Filla; Public Works Director, Gregory Hoag; Finance Director, Susan Iverson; Community Development Director, Karen Barton; Civil Engineer, Kris Giga; Assistant City Administrator, Schawn Johnson; Parks and Recreation Manager, Michelle Olson; and Recording Secretary, Kathleen Altman. 1. APPROVAL OF MEETING AGENDA Councilmember Holmes requested item 41) be pulled from the Consent Calendar to table or discuss this item. MOTION: Councilmember McClung moved and Councilmember Holden seconded a motion to approve the meeting agenda as amended. The motion carried unanimously(5-0). 2. PUBLIC INQUIRIES/INFORMATIONAL Recognition of Sandy Byl's Retirement from the City of Arden Hills Ms. Wolfe and Ms. Iverson presented Sandy Byl with a Certificate of Accomplishment and gift • certificate and wished her the best in her retirement. ARDEN HILLS CITY COUNCIL—MAY 29, 2007 2 Jennie Michels, 3436 Siems Court, indicated she was speaking on behalf of the Lake Johanna • Improvement Society. She stated on March 15 she had written a letter to the City asking for City funds to help with the Goose Removal Program and had received a response from the City that wild animal control was the residents' responsibility, unless the wild animal posed a public safety threat. She noted she had started this program in 1996 due to health concerns. She stated since the program's inception they have successfully removed 612 geese from the area and the water quality and surrounding areas have dramatically improved. She stated the City of Arden Hills had generously supported the program every year since 1996 and they were asking the City to reconsider their position. Duane Sheaser, 1926 Todd Drive, stated he was concerned about the impact the Highway 10/96 roads improvement would have on their park. Chris Lustig, 1901 Todd Drive, stated she also had the same concerns as the previous speaker. She asked why the decision was made that the road needed to go west of Highway 10 instead of it going east of Highway 10 where there was no development. She asked Council to consider the park residents concerns. She noted most of the people in the park could not afford other housing. She indicated letting Scherer Bros. stay while destroying their homes and The Big 10 was not an acceptable solution. Cheryl Fish, 2059 Todd Drive, asked if it would be more equitable to move Scherer Bros. rather than impact their homes. • Daniel Wilson, 1878 Todd Drive, asked if the road would go through the park. Mayor Harpstead replied it would go along the eastern edge of the park, but would not go through the park. Gerald Haack, 2047 Todd Drive, stated Arden Manor did not just consist of young couples raising families, but also retirees. She stated there was not a lot of affordable housing for retirees and this was affordable housing. She asked the City to take this into consideration before they tossed the residents aside. She noted there was plenty of land on the east side of Highway 10 that could be used for this project. Pat Haik, Briarknoll Circle, stated he disagreed this was an "improvement". He agreed with the previous speakers and he failed to see why this was an improvement when it inconvenienced the current residents of Arden Hills and he believed it should be the Council's priority to deal fairly with the current residents and not the future residents. He asked why the City was so adamant about pursing this change. He did not see the need for this upheaval. He noted the intersection was perfectly functional and it provided a break in the traffic. He stated the City needed to stand up for their current residents and not remove the light. He noted it would also limit the resident's access to the system. He indicated with this proposal there would be a minimum of three to four stoplights, and he did not see this being an improvement. • ARDEN HILLS CITY COUNCIL—MAY 29, 2007 3 Deb Erickson, Prior Avenue North, asked if there would be a retaining wall for noise and dirt. • She stated this project would have Highway 10 going in her back yard. She asked Council how they would like to lose their homes. Eva Storm, Prior Avenue, stated this would be a hardship for her and her husband if they were required to move. Patrick McClarety, 1181 Todd, stated the community was filled with nice people and this type of housing was not available in the City any longer. He indicated the people who lived in this community did not have $200,000 for an "affordable" home. He noted people took good care of their homes in the community and had pride in their homes. He stated this was a nice place to live. He indicated affordability was pertinent. He requested Council not make any decisions tonight until they met with their association. 3. APPROVAL OF MINUTES A. May 8, 2007 City Council Meeting B. April 23, 2007 Work Session Minutes MOTION: Councilmember McClung moved and Councilmember Holden seconded a motion to approve the May 8, 2007 City Council Meeting Minutes as presented and the April 23, 2007 Council Work Session Minutes as • presented. The motion carried unanimously(5-0). 4. CONSENT CALENDAR a. Claims and Payroll b. Resolution No. 07-56: Approving Lady Slipper Chapter ABWA Charitable Gambling License Renewal Request C. Motion to Approve the Appointment of Pang Silseth to the Accounting Clerk Position Commission, , Appointment, and Tefm Limit"Policy e. Motion to Approve the 2008 Budget Calendar MOTION: Councilmember Grant moved and Councilmember McClung seconded a motion to approve the Consent Calendar and to authorize execution of all necessary documents contained therein. The motion carried unanimously (5-0). 5. PULLED CONSENT ITEMS 4d. Motion to Approve the "City Commission, Committees, and Task Forces: Recruitment, Appointment, and Term Limit"Policy ARDEN HILLS CITY COUNCIL—MAY 29, 2007 4 Mr. Johnson stated at the March 12, 2007 City Council meeting, the City Council adopted Ordinance #385 amending the City's Boards, Committees, and Appointed Bodies section of the • City Code. The proposed policy has been reviewed by members of the City Council and the comments that staff received have been incorporated into the proposed policy. Councilmember Holmes stated she wanted something that said if someone was not appointed to a committee or commission, they could make their concerns known before Council. She believed they should have an opportunity to address the Council. MOTION: Councilmember Holmes moved and Councilmember McClung seconded a motion to refer this to a work session. Councilmember McClung stated he was okay with referring this to a work session for further discussion. He stated when they appointed people to committees, they had to come before Council so that was an opportunity for those who applied to be heard by the Council, but he agreed they should have a more formalized process. Councilmember Grant called the question. The motion carried unanimously(5-0). 6. PUBLIC HEARINGS A. Continuation of the 2007 PMP Assessment Heariniz and Motion to Approve • Resolution 07-55 — Adopting Special Assessment Roll for the 2007 PMP Improvements Ms. Giga reviewed the comments received at the May 14, 2007 public hearing. She stated that staff had received additional written objections since the assessment hearing was opened. Prior to the meeting, staff had a total of 30 objections from residents, and received some more at the beginning of the meeting. Ms. Giga reviewed staff s response to resident comments and concerns. She stated that staff recommends deferring the assessment to the property at 1465 Floral Drive until it is sold or further subdivided. She stated that staff recommends no deviation from the assessment policy for the commercial assessments. In response to resident concerns about financing the assessment, staff recommends adjusting the proposed interest rate to 6.5 percent, extending the length of the payment period to ten years, and changing the payment from an equal principle payment to an equal annual installment. She recommended the Council continue and close the public hearing for the 2007 PMP Special Assessments. Mayor Harpstead continued the public hearing at 7:58 p.m. Jeffrey Johnson, Attorney Representing Flaherty's Arden Bowl, stated he had submitted a letter to the City today. He noted the unit cost approach for Flaherty's was being assessed for a ARDEN HILLS CITY COUNCIL—MAY 29, 2007 5 3-unit cost and noted only one parcel could be subdivided from the main unit and therefore they • should be assessed for 2 units and not 3 units. He noted other cities charged less in interest and asked Council to look at this. He indicated the contractor had used Flaherty's property for staging their construction without specific permission to do this from the property owner. He stated this was a City improvement project and the City was the principle in getting the project done with the contractor being hired to do the work. Therefore he felt indemnification was not a dispute between the contractor and the property owner. He stated the City was in the middle of this. He recommended Council continue the discussion on the Flaherty's assessment. Mayor Harpstead closed the public hearing at 8:03 p.m. Mr. Filla reviewed the assessment appeal process. MOTION: Councilmember Grant moved and Councilmember Holden seconded a motion to accept the staff recommendation of 6.5 percent and the assessments be of equal annual installments. Councilmember Grant believed the interest rate of prime plus 2 percent was too high. He noted there was little risk the City would not collect on this. The motion carried unanimously(5-0). MOTION: Mayor Harpstead moved and Councilmember McClung seconded a motion to extend term of current assessment period from five (5) years to seven(7)years. Councilmember Holden asked if the City would recoup their costs over seven years. Ms. Iverson replied the City would recoup its costs. The motion carried unanimously(5-0). MOTION: Councilmember Grant moved and Councilmember Holden seconded a motion to allow 1465 Floral Drive assessment be deferred on the second parcel until the time the property is sold or subdivided. The motion carried unanimously(5-0). MOTION: Mayor Harpstead moved and Councilmember McClung seconded a motion to amend Motion 07-55 to add an "A" suffix to the Resolution and to amend this resolution reflecting the assessment be payable in seven (7) equal annual installments and bear an interest rate of 6.5 percent and that the assessment for the property at 1465 Floral Drive be deferred until the time the property is sold or subdivided. The motion carried unanimously (5-0). • ARDEN HILLS CITY COUNCIL—MAY 29, 2007 6 MOTION: Mayor Harpstead moved and Councilmember Grant seconded a motion to approve Resolution 07-55A: Resolution Adopting Special Assessment • Roll for the 2007 PMP Improvements specific to residential assessments. The motion carried unanimously(5-0). MOTION: Mayor Harpstead moved and Councilmember Grant seconded a motion to adopt Resolution 07-55B for commercial properties with same terms as the residential properties. Councilmember Holden stated she wanted to address the two issues of the assessment and property damage separately. MOTION: Councilmember Holden moved and Councilmember Grant seconded a motion that they separate the two issues, the unsettled matter to the damages to the parking lot and the assessment. Mr. Filla explained that motion was not necessary. Councilmember Holden and Councilmember Grant withdrew their motion. The motion carried unanimously(5-0). B. National Pollutant Discharge Elimination System (NPDES) Annual Storm Water Meeting 0 Mr. Hoag stated as of March 10, 2003, the MPCA required all cities within the seven county metropolitan area to apply for a general storm water management permit as part of the Federal National Pollution Discharge Elimination System Requirements. In order to comply with the new federal regulations, municipalities were required to develop a Storm Water Pollution Prevention Plan (SWPPP) that focuses on ways the municipality will reduce the amount of sediment and pollution entering the surrounding water bodies. Each year the city is required to hold a public meeting on the SWPPP and to submit an annual report to the MPCA documenting the accomplishments of the previous year. Mr. Hoag summarized the work completed in 2006 and the goals for 2007. Mayor Harpstead opened the public hearing at 8:29 p.m. There were no comments made. Mayor Harpstead closed the public hearing at 8:30 p.m. MOTION: Mayor Harpstead moved and Councilmember McClung seconded a motion to adjust the agenda moving item 7d to be heard before item 7a. The motion carried unanimously(5-0). • ARDEN HILLS CITY COUNCIL—MAY 29, 2007 7 7. NEW BUSINESS • D. Motion to Approve Resolution 07-61: Supportine a Concept Plan for the State Highway 10 and County Highway 96 Improvement Project Ms. Wolfe stated there have been discussions for several years regarding improvements to the intersection of Highways 10 and 96. She reviewed the 2007 discussions to-date regarding this project. She recommended Council approve the resolution supporting a concept plan for the State Highway 10 and County Highway 96 Improvement Project. Councilmember Holden asked why they would want to pass this before the June 19 meeting. Ms. Wolfe responded the timing of supporting the concept plan was driven by some of the items she mentioned previously including pre-design engineering. MOTION: Councilmember Holmes moved and Councilmember Holden seconded a motion to table this until after the June 19, 2007 public meeting. The motion carried unanimously(5-0). Councilmember McClung stated he was concerned about how this process went and that the benefits are for future residents and the current residents had to deal with this now. He stated he would not vote for this if the plan stayed the way it was. • Councilmember Holden stated she looked forward to the future and like it or not TCAAP was part of the future of the City and they had to plan for both current and future residents. Councilmember Grant stated in 2000 Council had told the County to start at White Bear Lake and move down Highway 96, which they had done and now was the time for Arden Hills. He stated he wanted to design something that was good for both the current residents as well as the future residents. He did not see Highway 10/96 remaining as it was. He noted neither Highway 10 nor 96 were City roads and the City could fight this, but probably would not win and the final decision rested with the State and Federal governments. Mayor Harpstead stated he worried about the neighborhood in this triangle because it was not easy for the residents to have access. He indicated if they created an appropriate face and did things right on the frontage road, he believed the vitality and nature of that neighborhood would be enhanced and not hurt. He acknowledged it was devastating if residents had to move because of this project,but it might be a necessity. Councilmember Holmes stated the reason she tabled this was because she wanted good solutions and she was extremely concerned about the homes being taken and she hoped they could come up with a solution. She indicated they needed to stand up for the rights of the current residents. She recommended everyone show up at the June 19 meeting and come with their thoughts and solutions. • ARDEN HILLS CITY COUNCIL—MAY 29, 2007 8 Al. Motion to Approve the April 18, 2005, Quote for Services with SEH, Inc including • Options 2 and 3 for Transportation Planning Services in an Amount Not-toExceed $23,820 for the 2008 Comprehensive Plan Update A2. Motion to Approve the Budget Increase of$13,000 for the 2008 Comprehensive Plan Update Process Ms. Barton reviewed the 2008 Comprehensive Plan update and recommended Council approve the April 18, 2007 Quote for Services with SEH, Inc. Councilmember McClung asked why were they coming back and adding on something for transportation now. Ms. Barton responded in working with the other consultants they knew they would not be using their services for transportation and staff anticipated they would need some assistance in the transportation area, but they did not have any idea of how technical this issue would be or how much staff would be able to handle in-house. Councilmember Holden stated when they were talking about the $40,000 she believed this would cover the entire Comprehensive Plan. Ms. Barton responded staff was hoping they would able to bring it in under $40,000 and the previous contract came in just under $30,000, so they did not anticipate the actual cost of hiring someone for the transportation portion. Councilmember McClung stated he was concerned that this was not fully clear and he might have voted differently had he known they would be dealing with this separately. . MOTION: Councilmember Holden moved and Councilmember Grant seconded a motion to approve the budget increase of $10,000 for the 2008 Comprehensive Plan Update Process. Councilmember Holden stated she could live without options 3 and 4. Councilmember Holmes asked if this should be tabled to obtain additional bids. She stated this was a large increase to the budget and she would like to discuss this further because she was not satisfied with this amount. MOTION: Councilmember Holmes moved and Councilmember McClung seconded a motion to table the motion to increase the budget to a future date. Motion carried 3-2 (Mayor Harpstead and Councilmember Holden opposed). MOTION: Councilmember Holmes moved and Councilmember McClung seconded a motion to table the Quote for Services with SEH, Inc. including Options 2 and 3 for Transportation Planning Services in an Amount Not-to-Exceed $23,820 for the 2008 Comprehensive Plan Update. The motion carried 3- 2 (Mayor Harpstead and Councilmember Holden opposed). • ARDEN HILLS CITY COUNCIL—MAY 29, 2007 9 B. City Council Compensation Discussion Mr. Johnson stated the Council had requested staff to research the annual compensation being offered to elected officials in cities throughout the metro area. He summarized the research staff found. Councilmember Grant stated he believed the last time Council's compensation was increased was in 1993. Councilmember Holden asked if there was a way to establish something like an inflation indicator so this did not always require a vote on this. Ms. Wolfe responded staff would look into this. Councilmember Grant asked staff if they could research taking this out of the City Code. Councilmember McClung stated this was a worthwhile discussion and he would like to discuss this at a work session soon. Councilmember Holmes stated she would also like to discuss this at a future work session. Mayor Har stead believed w y p it as appropriate for staff to come back to Council with further • information. He stated he would like something tied to the neighboring cities,but not necessarily the same as the neighboring cities and to allow it to move with what the neighboring cities did. C. Motion to Approve a Proposal dated May 7, 2007 and Authorize Staff to Contract with Bonestroo to Complete an Infiltration and Inflow (I/I) Study for the City in an Amount Not-to-Exceed $9,600.00 Ms. Giga stated as part of a joint solicitation with the City of Roseville, City of Arden Hills staff has requested proposals from 5 consulting engineering firms to assist in identifying Infiltration and Inflow (I/I) sources with the City. She presented a background on why UI is a concern for the City and recommended Council approve the proposal. Councilmember Grant asked if there was a difference in quality of the proposals. He asked if they had any history with Bonestroo. Ms. Giga responded they had spoken with the three lower firms about their bids. She noted at Roseville they have worked with Bonestroo in the past and their references had also come back favorably. She stated staff was comfortable with Bonestroo's proposal. MOTION: Councilmember Holden moved and Councilmember Grant seconded a motion to approve a proposal dated May 7, 2007 and Authorize Staff to Contract with Bonestroo to complete an Infiltration and Inflow (U Study for the City in an Amount Not-to-Exceed $9,600.00. The motion carried • unanimously(5-0). ARDEN HILLS CITY COUNCIL—MAY 29, 2007 10 E. Motion to Approve Amendment#2 to the Preliminary Development Agreement with • RRLD dated March 30, 2007 F. Motion to Approve Resolution 07-59 Relating to Financing of Project and Establishing Intent with Respect to Reimbursement MOTION: Mayor Harpstead moved and Councilmember McClung seconded a motion to table the approval of Amendment #2 to the Preliminary Development Agreement with RRLD dated March 30, 2007 and table the approval of Resolution Relating to Financing of Highway 10/96 Interchange project; Establishing Intent with Respect to Reimbursement. The motion carried unanimously(5-0). G. Motion to Approve Resolution 07-60 in Support of an Application for the Governor's 2008 Bonding Bill towards the Highway 96 and Highway 10, and County Road H Interchange Projects Ms. Wolfe recommended Council approve the resolution. MOTION: Councilmember Grant moved and Mayor Harpstead seconded a motion to approve Resolution 07-60 in Support of an Application for the Governor's 2008 Bonding Bill towards the Highway 96 and Highway 10, and County • Road H interchange projects. Councilmember McClung stated he was not in support of this at this time. The motion carried 4-1 (Councilmember McClung opposed). 8. UNFINISHED BUSINESS A. TCAAP Ms. Barton updated on the Council on recent TCAAP developments. 9. COUNCIL REQUESTS AND REQUESTS A. Mayor Harpstead noted Ramsey County had a June 21 deadline for their budget and they needed to pay attention to this with respect to the Highway 10/96 interchange. He indicated the County would not move forward without City approval regarding the Highway 10/96 interchange. Councilmember Holden recommended they discuss Council's action prior to the June 21 deadline. B. Councilmember Grant updated the Council on the Finance Committee's recent meeting. ARDEN HILLS CITY COUNCIL—MAY 29, 2007 11 • C. Councilmember McClung stated on June 19 he was unable to attend the public meeting due to a work commitment. Councilmember Grant stated there was a strong possibility he would also be out of town during this time. MOTION: Councilmember Holden moved and Councilmember McClung seconded a motion to adjourn to a closed session pursuant to MS 13D.05 SUBD 3.b. The motion carried unanimously(5-0). Mayor Harpstead adjourned the Regular City Council meeting at 9:50 p.m. to proceed to a closed session pursuant to MS 13D.05 SUBD 3.b. Stan Harpstead Michelle Wolfe Mayor City Administrator NOTICE OF MEETINGS The next Council Meeting will be held Monday, June 11, 2007 at 7:00 p.m. at the Arden Hills Council Chambers. • • ­AWEN HILLS Approved: CITY OF ARDEN HILLS, MINNESOTA CITY COUNCIL WORK SESSION MAY 21,2007; 5:00 P.M. ARDEN HILLS CITY COUNCIL CHAMBERS 1. CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor Stan Harpstead called to order the City Council Work Session meeting at 5:07 p.m. Present: Mayor Stan Harpstead, Councilmembers David Grant, Brenda Holden, Fran Holmes (arrived 5:45), and David McClung Absent: None. • Also present: City Administrator Michelle Wolfe; Assistant City Administrator Schawn Johnson; City Planner James Lehnhoff; Finance Director Sue Iverson; Public Works Director Greg Hoag; Parks and Recreation Manager Michelle Olson; Community Development Director Karen Barton; SRF Consultant Nancy Frick; and Recording Secretary Dianna Wise. 2. APPROVAL OF MEETING AGENDA MOTION: Councilmember Holden moved and Councilmember Grant seconded a motion to approve the meeting agenda as presented. The motion carried unanimously(4-0). 3. AGENDA ITEMS A. Alternative Urban Area-wide Review (AUAR) Discussion Community Development Director Karen Barton reported that as part of the TCAAP redevelopment, the State Environmental Quality Board (EQB) requires an environmental review be conducted to assess and address potential impacts associated with the proposed development. She introduced Ms. Nancy Frick, SRF Consultant, and requested she provide an overview of the process. ARDEN HILLS CITY COUNCIL WORK SESSION—MAY 21, 2007 2 Ms. Frick, SRF Consultant, distributed a table, proposed schedule chart, and an example of an AUAR completed for the City of Eagan as an example. She explained members could Google AUAR to find out additional information. Ms. Frick discussed the services provided by SRF Consultants. She explained SRF is a multidisciplinary consulting firm specializing in transportation, engineering, roads, bridges, parking structures, transportation studies, urban design, comprehensive planning, and environmental studies with 95 percent of their work being with the public sector. She stated she has been with SRF for seven years as a Senior Consultant in the environmental group. Ms. Frick stated prior to this she spent 20 years in the public sector as a City Planner. She stated SRF provides state and federal environmental services. Ms. Frick reviewed the state environmental process with regard to AUAR. She explained AUAR is under the state process and is an alternative to the documents that have been part of state environmental law for many years. She mentioned these include documents such as the Environmental Impact Statement and the Environmental Assessment Worksheet. She commented that the limitations with these documents did not allow looking at broader relationships. She stated the new program provides flexibility for the impacts of a comprehensive plan. Ms. Frick stated TCAAP is a large mixed-use site that would take years to complete. She stressed the complex impacts that need to be understood. Councihnember Holden asked who her employer was and if a conflict of interest exists • between SRF and the developer. Ms. Frick replied SRF has a contract with the City and her job is to produce the document. She explained SRF gathers technical information from the developer and other consultants working for the developer. She pointed out that, for example, SEH conducts the traffic work and RLK does storm water, utilities, and water quality. Ms. Frick indicated SRF has good collegial relationships with other consultants. She commented there are professional credentials and trust between the firms and at the same time, SRF works to keep the City's perspective in mind and to be the City's advocate. Mayor Harpstead questioned what would be done if a disagreement arises with the documents from the other firms. Ms. Frick replied she would work through those issues with all parties. Mayor Harpstead inquired as to who would draft any required AUAR corrective actions. Ms. Frick replied that when an analysis is done, the corrective action would be written at that time. She stressed SRF would be working as a team. She indicated peer reviews are done and SRF would work with Council and staff to pull the documents together. • ARDEN HILLS CITY COUNCIL WORK SESSION—MAY 21,2007 3 A discussion ensued with examples of how mitigation would work. Ms. Frick explained an AUAR did not make a decision or change a comprehensive plan. She stated the AUAR is an informational document that informs the decisions the City needed to make, establishes mitigation expectations, assigns responsibility, and provides documentation so that as developments move forward,it is available. Ms. Frick explained the AUAR is the City's document and mitigation plan in that if over time, one development proposal falls through, and another picks it up, the AUAR is a tool to set guidelines. She explained the AUAR is flexible enough of look at the set parameters and determine if the new developer is compatible to eliminate the need for a new AUAR. Councilmember Holden asked Ms. Frick what she would work from when doing the assessment as this is Arden Hills' kick-off with an AUAR. Ms. Frick replied there is a no-build scenario, a maximum build scenario, and a third plan currently in the making. She explained the development figures are provided to the City, refined, and a decision made on the actual build out plan. City Administrator Wolfe clarified that the plans would be brought forward through the development process and refined. iCouncilmember McClung asked how the maximum build is determined. Ms. Frick replied it is basically what is consistent with the comprehensive plan. She stated the purpose of looking at the maximum build plan is to understand and quantify the maximum impact to accommodate the maximum build. She stated that as the Master Plan is refined,the community's vision is rolled into it. Mayor Harpstead asked what the maximum build out is and how the impact would be determined. Ms. Frick restated the purpose in looking at the maximum build is to look at what the maximum impact would be and to quantify this. She explained the various types of impacts and how to look at what the critical issues would be, such as traffic. Mayor Harpstead asked if it were possible to have a maximum build scenario for each sub category. Ms. Frick replied she did not see that happening, rather they would settle on a build scenario that is a reasonable maximum build. She commented scenarios are from the Master Plan process. • Councilmember Holden asked Ms. Frick what the maximum density is based upon. ARDEN HILLS CITY COUNCIL WORK SESSION—MAY 21, 2007 4 Ms. Frick replied it is provided by the Master Plan and the Master Plan consultant. Ms. Frick referred the group to the chart and explained the two milestones. She commented that at the time it was developed, the original idea was that the Master Plan would be presented to the community at the end of June; however, the date has been moved to later in July. She stated the Master Plan would be presented to the City Council in the interim. She indicated SRF would start when the Council is comfortable with the Master Plan. Community Development Director Barton commented the single plan would be brought to Council and then meetings held to refine it prior to the open house in July. She stated the single plan would be reviewed on June 25, 2007 and then refined by end of July 2007. Councilmember Holden asked if the schedule was started on March 24, 2007 and worked backwards. Ms. Frick replied that was correct and it was her understanding the process must be completed by the end of March 2008. She explained the schedule started where the City needed to be by the end of March 2008 and where the community currently is in the Master Plan process. She referred the group to the table and stated that in order to achieve the March 2008 date, the City Council must approve the draft publication of the AUAR no later than October 8, 2007. She explained that March 24, 2008 is the last EQB • publication date. She stressed this is critical because from the point the draft AUAR is authorized for publication, the state process takes over. She stated this is not much time and stressed SRF tries to include many opportunities and work sessions into the schedule to give it to Council for review and comments so the City Council is comfortable with it on the October 8, 2007 approval date. Community Development Director Barton explained the draft would be given to Council to focus on in pieces, as each part was completed. Councilmember Grant asked about a revised scenario. Ms. Frick replied it is up to the City to choose the scenario. Councilmember Grant inquired about the wetland delineation. Ms. Frick replied that SEH had been doing the wetlands delineation and data collection. Ms. Frick referred the group to the chart relative to the technical team tasks. She stated the numbers referred to the worksheet questions. She then directed Council and staff to the memorandum from Community Development Director Barton, and the list of questions. She explained these activities trail the other technical studies underway. Ms. Frick stated there are still opportunities to refine the technical study work relative to the • ARDEN HILLS CITY COUNCIL WORK SESSION—MAY 21, 2007 5 milestones. She commented that the milestones indicate when the technical study should • be done in order to provide a document to Council by October 8, 2007. Mayor Harpstead asked if the environmental assessment is in the same schedule. Ms.Frick replied that was correct. She stated SRF and staff are included at meetings held by other consulting team members so that there is an understanding that SRF is the City's representative. Mayor Harpstead stated the schedule is very aggressive and asked where the biggest risk is on the schedule. Ms. Frick replied she is trying to build in the work sessions and updates so the City Council is not uncomfortable with what they are approving. She stated the challenge is to make sure the Council has the information they need when they need it. Councilmember McClung inquired as to the impact of the schedule and the lag time to analyze the data. He asked where the potential might be for major problems. Ms. Frick replied the team talks the schedule through and understands what milestones they have no control over. She stated there is an understanding among the consultant team that the milestones are important. • Councilmember Holden stated many newsletters are currently distributed and indicated concern that more would be added. She asked about the communication plan. Ms. Frick replied the scope of SRF is to provide content to the City, who would then communicate the information to the public. A discussion ensued on the newsletter. Councilmember Holden asked what the kick-off meant in this instance. Ms. Frick replied it is generally when a project starts. She stated expectations and schedules are discussed. She reported two meetings have been held thus far and they are scheduled to meet weekly. Mayor Harpstead summarized that there is a schedule and a team. He asked how SRF would inform the Council when meetings are held. Ms. Frick replied the chart depicts when the meetings are held. Mayor Harpstead asked if there are specific actions required by Council at this time. • Ms. Frick replied not at this time. ARDEN HILLS CITY COUNCIL WORK SESSION—MAY 21, 2007 6 A discussion on the meetings ensued. • Ms. Frick reported a public hearing is scheduled for November 1, 2007;however, it could be held at any time during the 30-day comment period. She explained a public hearing is not required to initiate an AUAR; however, it is a good idea. She commented Council is required to set the boundaries of the AUAR with the understanding that the scenario could be updated. She explained there must be a Council resolution that formally initiates an AUAR. She indicated the 120-day clock starts the day an AUAR is ordered until the final AUAR is issued. Community Development Director Barton stated an extension could be applied for. Councilmember Holden asked what happens between June 25 and July 19, 2007. Ms. Frick replied Council and staff could wait to initiate the AUAR, as long as there is the understanding that SRF would continue to work on this. She stated that if the refinement is substantial enough that it should have an updated resolution, it could be looked at. Mayor Harpstead questioned if, given that a public hearing is scheduled after that date, Council could delay a vote authorizing an AUAR until after the public hearing. Ms. Frick advised the group that the state process states the order does not have to occur • at that time; however,the work continues. Councilmember Holmes asked if the resolution made on June 25 must be specific. Ms. Frick replied it could include a range of language. She commented that what Council did not want is something more intense or to analyze the wrong things. Ms. Frick asked Council to look at the key dates. Community Development Director Barton asked how the timeline would be affected if the resolution were not done until after July 19, 2007. Ms. Frick replied it would not be affected. She commented the value of the timeline to the consultant is to make sure everyone is on the same page. Councilmember McClung asked Council and staff to look at the dates to make sure they do not conflict with other items on the calendar. City Administrator Wolfe stated it would be incorporated into the overall timeline. • ARDEN HILLS CITY COUNCIL WORK SESSION—MAY 21, 2007 7 . B. Review of 2008 Budget 1. 2008 Budget Schedule Finance Director Iverson stated the 2008 budget calendar must be approved by Council. She is looking for input from the members. Councilmember Holden recommended Council members let Finance Director Iverson know what changes they want. Finance Director Iverson stated in past years, this was not initiated until July. She commented this was not enough time for feedback; therefore, it is now being done two months earlier so feedback could be analyzed. Finance Director Iverson reported the budget is an estimate and a guideline to what the City thinks would happen. She stated that the Council approves items as they happened during the year and that she does a formal budget amendment at the end of the year. Finance Director Iverson commented that the Council has done very few amendments this year. She commented with the budget process, the format would include 2008 proposed budget,2007 budget, 2007 year-to-date, 2006 budget numbers, and 2005 budget numbers. • 2. 2008 Budget Goals and Guidelines Finance Director Iverson stated she is looking for feedback as to how Council and staff should proceed. Mayor Harpstead inquired as to the budgeting process. Finance Director Iverson replied with the types of expenses that need to be tracked and the different categories it would make sense to set this up. She explained that departments would provide a certain amount of detail. She stated the large budget categories would be listed out in a narrative format. Finance Director Iverson commented that a spreadsheet of line items and greater budget detail would be available. Discussion ensued. Finance Director Iverson referred Council and staff to the tax levy and asked what Council's comfort level is for the tax levy. She explained how the process works. Discussion ensued. Finance Director Iverson indicated that she would do an analysis of last year's tax • capacity. She reiterated the general tax levy guideline from Council is four percent. ARDEN HILLS CITY COUNCIL WORK SESSION—MAY 21, 2007 8 Finance Director Iverson indicated equipment replacement funding should be addressed. • She reported no reserve fund is set up for equipment replacement. Discussion ensued. Consensus was reached to establish a reserve fund for equipment replacement with parameters and policies to be developed. Finance Director Iverson reported staff sees a need to establish a reserve fund for park capital improvement. She commented the fund would be a funding source for items included in the CIP. Discussion ensued. Consensus was reached to meet with the Parks, Trails, and Recreation Committee before a decision is made. Finance Director Iverson reported on salaries and benefits. She stated that last year, the Council authorized a 2.75 percent increase for steps and COLA increases. She explained this was also the rate increase agreed to by the labor union for 2006 and 2007. She stated the labor agreement expires December 31, 2007 and a new agreement must be negotiated. She commented that for several years, Council budgeted a 3 percent increase for COLA. • She explained staff sent out a survey to gather information on what other cities used over the last three years. The report showed that the average pay increase for cities surveyed was 3 percent in 2007, 2.9 percent in 2006, and 2.85 percent in 2005. She explained the current compensation study would show the market rates; however, future COLA increases would determine if the City stays current with the market or falls behind. Discussion ensued. Consensus was reached that staff make an assumption, report what was done to Council and then as the budget process is discussed, Council could weigh in on the decision. Assistant City Administrator Johnson discussed employee benefits. He stated there is a loophole in the contract with the co-op whereby the City could search for the best insurance. He stated he should know the rates by late July or early August. He explained there is a three-month window of opportunity; however, once out of the co-op, the City could not go back in. City Administrator Wolfe explained this would impact about 13 staff members and cautioned everyone on leaving a consortium. Discussion ensued. • ARDEN HILLS CITY COUNCIL WORK SESSION—MAY 21,2007 9 Consensus was reached to go out for bids and work out the rates and the City's • contribution options,using the lower cost plan. Finance Director Iverson presented an update of the five-year CIP. She stated she is working with the Plan-it software to input fund balances. She stated that once done, a dollar amount report would be brought to Council. Discussion ensued. City Administrator Wolfe reported Assistant City Administrator Johnson was designated as the CIP coordinator. Finance Director Iverson reported that to create a quality budget document, performance measures/service indicators need to be established for each development. She stated some of these might come about as a result of the community survey as areas the Council would like to improve. She stated goals and objectives need to be established in 2008 for each department, thus enabling actual performance tracking in subsequent years to show progress against the goals. Finance Director Iverson provided examples of performance measures/service indicators. She stated staff would appreciate input from the Council. She stated this would give the Council a better tool to evaluate City services. • Discussion ensued. Consensus was reached to move in this direction. City Administrator Wolfe stated she heard in the past that Council Members prefer a budget work session separate from other work session topics. She asked if there is a strong preference either way. Discussion ensued. Mayor Harpstead stated that if something rises to the point where significant decisions are required, a separate stand alone meeting might be required. Financial Plan Overview Finance Director Iverson reported that in late 2006, the City contracted with Ehlers & Associates, Inc. to develop a Financial Management Plan. She stated this tool would help the City assess the current financial status, assist with budget decisions, and provide a foundation for future planning. She explained part of the process involves setting goals and parameters for future budgets. She stated these goals help guide the decisions on uses of budgeted, one-time, and unexpected revenues. She stated the plan would help • prioritize capital expenditures and guide the use of debt as a financing tool. ARDEN HILLS CITY COUNCIL WORK SESSION MAY 21, 2007 10 Finance Director Iverson stated staff requires direction from Council on the following • issues presented at the November 20, 2006 meeting: General Fund balance, use of land sale proceeds from the old City Hall site, future cash flows of streets and equipment (PIR Fund), establishment of a separate Capital Equipment and Park Improvement Fund, policy decisions on decertified TIF districts, a policy decision on the City tax rate, and completion of the plan for the utility fund analysis. 1) General Fund Balance Discussion ensued. Consensus was reached to direct the Finance Committee to develop a fund balance policy of 50 percent. 2) Use of Land Sale Proceeds from old City Hall Site Discussion ensued. Consensus was reached that it belongs in PIR. 3) Future Cash Flows of Street and Equipment(PIR Fund) Discussion ensued. • Consensus was reached that Council and staff would develop a reserve policy to determine how the Council would react to capital funds and this would be brought back to Council for review. 4) Establish Separate Capital Equipment Fund and Park Improvement Fund. This item was discussed earlier. 5) Conservative estimates used as assumptions in the Model Discussion ensued. Consensus was reached that Council is comfortable with the assumptions listed. ARDEN HILLS CITY COUNCIL WORK SESSION—MAY 21,2007 11 • 6) Policy Decision on Decertified TIF Districts Finance Director Iverson reported the Council is required to make a decision on what to do when a TIF district is decertified. She stated one district decertifies in 2009 and another in 2015. She questioned the Council as to whether it wanted to let the increment revert back to the general tax rolls as a reduction or did it want to budget that amount for a special purpose. She explained the decision would result in either taxes decreasing or taxes remaining the same. Discussion ensued. Mayor Harpstead directed Finance Director Iverson to maximize the opportunity. 7) Policy Decisions on the City's Tax Rate Finance Director Iverson stated that direction from Council has been that the new Financial Planning and Analysis Committee work on this. She asked Council for direction and/or parameters. Discussion ensued. Consensus was reached to take this to the Financial Planning and Analysis Committee. • 8) Utility Fund Analysis Completion Finance Director Iverson reported a rate study was completed in 2004; however, the financial plan would update and assist in determining whether additional changes are needed in 2008. Finance Director Iverson reported the senior citizen's discount rate is costing the City $42,000 per year. She presented the possibility of a tier rate structure. Discussion ensued. Consensus was reached to direct staff to conduct a rate study. General Finance Update 1) 2006 Unaudited Financial Reports Finance Director Iverson stated the Surface Water Management Fund and the TCAAP Fund had a negative cash flow. She reported she completed an inter fund transfer of cash from the General Fund because a negative cash balance is not allowed. • ARDEN HILLS CITY COUNCIL WORK SESSION—MAY 21, 2007 12 Discussion ensued. 2) 2007 Financial Update-l" Quarter • Finance Director Iverson reported the field work on the audit is completed. She pointed out the 2007 numbers have not yet been adjusted for changes and corrections. She implied that the numbers might not be in the correct categories or departments. She explained that going forward,quarterly updated reports would only include the 2007 year- to-date numbers with the budget variance listed along with explanations. Discussion ensued. Finance Director Iverson commented that once the investment policy is complete, new investment will be made as well as a change in investment companies. 3) Financial Planning and Analysis Committee(FPAC) Update Finance Director Iverson reported the first FPAC meeting would be held May 23, 2007 at 7:00 p.m. She stated the order of business would be to appoint a chair, set a meeting schedule, and organize the group. She explained staff would hold a training session on Government Fund Accounting and Budgeting at this meeting to familiarize the committee members with public sector policies and procedures. Finance Director Iverson provided copies of the training materials to Council and staff. • Finance Director Iverson mentioned that Council is welcome to attend the meeting. 4. Council Comments and Requests Councilmember Holmes questioned whether a review process should be implemented for individuals that are not selected to a committee, commission, or task force. She commented that she spoke to an individual who applied four times and had not heard back from the City. City Administrator Wolfe stated there was a decentralized process recruitment process in the past. She commented that staff often did not know who had applied. She noted that a centralized process is being put into place and will be managed out of the Assistant City Administrator office. Discussion ensued. Consensus was reached that staff would work on a flexible process for appointing committee, commission, and task force members. ARDEN HILLS CITY COUNCIL WORK SESSION—MAY 21, 2007 13 Councilmember Holmes stated she attended a library meeting where the Arden Hills • Library closing was discussed. Mayor Harpstead interjected and stated Roseville library is in the third year of its Capital Plan and second phase of its Expansion Plan. He reported that the City of Roseville would consider contributing funds to create a larger regional library in the Arden Hills area. Councilmember McClung reported the PTRC will be presenting information at the July work session. Councilmember McClung reported that he attended the Fire Department Board of Directors meeting where authorization was given to accept bids to replace the pumper truck. He stated the lowest bid was accepted from General Safety in the amount of $429,909. He commented there are about $15,000 of accessories increasing the bid to $446,000 authorized by the Board. He reported the LJFD board agreed to pay for the chassis out of the General Fund with the remainder to be paid the first quarter of 2008. He commented that the cost to replace the pumper and the chiefs vehicle was approximately$460,000 in the LJFD Fire Department's annual budget. A discussion on the Fire Department budget ensued. Councilmember Holden reported she attended a meeting with the National Guard on May • 21, 2007. She stated the National Guard indicated an easement to access the ball fields would be given to the City. She stated the National Guard would present a plan to the City Council during a work session. She suggested sending copies of the City's congressional letters to the Guard. Councilmember Holden reported the National Guard is interested building a new armory in Arden Hills. She commented that the proposed community center would include basketball courts and ball fields. She commented housing units and dormitories would be also be included in this project. Councilmember McClung reported that emergency management for the state of Minnesota may also be located at this facility. Councilmember Holden asked about the manufactured home community meeting. She stated she read a relocation consultant would be at this meeting. She indicated it was her understanding the City would meet with representatives from the manufactured home community. City Administrator Wolfe replied the City will have an expert on relocation available at the public meeting. • ARDEN HILLS CITY COUNCIL WORK SESSION—MAY 21, 2007 14 Mayor Harpstead reported the EDC will be attending the next work session meeting to • discuss redevelopment strategies. He indicated the EDC is looking at incremental marketing materials and for a discussion on how to create understanding or what can be done to market the Chesapeake Project or the Old City Hall properties. Discussion ensued. Mayor Harpstead reported that he met with Representative McCollum on May 21, 2007. He stated the message was they are concerned with the developer working closely with Congressman Oberstar to the point that funding for County Road H in 2008 is in jeopardy, but not gone. He commented the City has an obligation to start talking about a realistic overall schedule. He mentioned he believes Oberstar is concerned with the 2008 County Road H intersection relative to other priorities in the congressional district. He stated that if the schedule allowed it to slide, she would allow that. Mayor Harpstead stated he wanted to work better at getting more people in the room. He commented larger meetings that include MNDot, Met Council, neighboring cities, and the National Guard would be included. A discussion ensued. City Administrator Wolfe stated postponing the TCAAP meeting was considered because • the insurance quotes were not back. City Administrator Wolfe distributed a calendar with the meetings for May, June, July 2007. City Administrator Wolfe replied the meeting on May 31, 2007 would cover a variety of issues that related to the TCAAP property; however, the key piece is the financial assurance issue. She stated the Army indicated it is okay with the bond concept and the development proposal; however, they want to know if they could the access the money for cleanup if it went into the general treasury. She stated the City or developer could resolve the issue, the Army must find the solution. She stated the goal for the meeting is to reach an agreement and sign off on it. A discussion ensued. • ARDEN HILLS CITY COUNCIL WORK SESSION—MAY 21,2007 15 • 5. Adjournment MOTION: Councilmember McClung moved and Mayor Harpstead seconded a motion to adjourn the meeting at 9:10 p.m. The motion carried unanimously(5-0). Stan Harpstead Michelle A. Wolfe Mayor Harpstead City Administrator •