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HomeMy WebLinkAbout09-11-23-R 1 --SI�QEN HILLS Approved: October 9, 2023 CITY OF ARDEN HILLS, MINNESOTA REGULAR CITY COUNCIL MEETING SEPTEMBER 11, 2023 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 Tom Fabel, Brenda Holden, Tena Monson and Emily Rousseau Absent: None Also present: City Administrator Dave Perrault; Public Works Director/City Engineer David Swearingen; Community Development Director Jessica Jagoe; City Attorney Jack Brooksbank; and Assistant to the City Administrator/City Clerk Julie Hanson PLEDGE OF ALLEGIANCE 1. APPROVAL OF AGENDA MOTION: Councilmember Monson moved and Councilmember Rousseau seconded a motion to approve the meeting agenda as presented. The motion carried L2h 2. TCAAP/RICE CREEK COMMONS UPDATE City Administrator Perrault stated the Energy Advisory Committee met on August 31 and further discussed guiding principles and goals, along with the need for a consultant to assist with defining goals and metrics. He explained the guiding principles and goals were presented to the JDA on September 5. He noted the Advisory Committee met on September 7 and received an update on the Outlot A (thumb) property. He reported the JDA would be receiving a full update on this property on October 2. He indicated the JDA met on September 5 and received a presentation from panelists regarding retail, housing and commercial/industrial market conditions. He explained the JDA would be meeting next on September 27 where density scenarios would be discussed with the developer. He stated the JDA's public engagement event was set for November 1. He commented on the primer tracer property noting there were now seven bidders engaged in the sale of this property. ARDEN HILLS CITY COUNCIL— SEPTEMBER 11, 2023 2 Mayor Grant commented as long as there were bidders in the auction, the sale of the primer tracer property would continue. He noted the initial bid was $110,000 and the price was now up to $800,000. He explained the auction would continue until there were no bids for a 24 hour period. Councilmember Rousseau asked if the County has set a minimum range for the density within this project. City Administrator Perrault stated Ramsey County has not set a floor for the density. He anticipated the number would be above 1,460. He reported zoning code amendments would have to happen if the number were increased above 1,460, they could go up to 1,785 to 1,790 without Met Council approval, but this would mean increased density in the Town Center. He noted the developer does not recommend increasing the density in the Town Center due to the cost of concrete. Councilmember Holden reported she was surprised by Commissioner Frethem's comment, noting the City had offered this number of units many years ago. She indicated she was surprised by the fact the JDA meeting did not include a real estate market expert. She questioned if staff would be bringing someone forward to speak to the housing market. City Administrator Perrault stated as of right now, the JDA was not planning to have any other outside experts coming in to address the JDA. He noted the next update would be from Bob Lux with Alatus to talk about his proposed development scenario and what he believes would be a good fit for the site. Councilmember Holden explained she was concerned with how the focus of the discussion was about cramming a large number of people into a small area in order to feel safe. She indicated this was not working right now in Minneapolis and St. Paul. She indicated the panelists were not market experts but rather were people invited in to provide their perspective. Councilmember Fabel asked if the 1,460 number would require an amendment to the zoning code because the building heights would be lowered in the Town Center area. City Administrator Perrault reported the developer was requesting the elimination of some of the Flex Office space in the southwest portion of the development in order to allow for more housing. He recommended the developer speak to this question further. Mayor Grant noted there is no Master Developer at this time as there is not a signed memorandum of understanding with the developer for this project. He hoped Bob Lux would sign an MOU at some point. Councilmember Monson commented she believed the experts that were brought in for the JDA worksession were really good. She understood staff had worked to find a realtor and to get the developer in attendance, but noted fantastic information was provided. She commented on how the post-pandemic world was discussed and stated she looked forward to hearing from the developer on September 27. She looked forward to a consultant coming in to assist the Energy Advisory Committee. ARDEN HILLS CITY COUNCIL—SEPTEMBER 11, 2023 3 Councilmember Rousseau questioned what the cost differences were for a four story versus an eight story building. City Administrator Perrault stated he was uncertain but could speak with the developer regarding this matter. Councilmember Holden indicated cost for cement was 20%higher than it was two years ago,but noted it was her understanding the price was starting to come down. Mayor Grant commented the developer could build 78 feet in height with lumber construction. He questioned if staff understood the County's reason for driving density up. City Administrator Perrault reported he preferred not to answer this question on behalf of the County but anticipated the answer to this was a confluence of factors that included return on investment along with equity and affordability issues. Councilmember Fabel stated the County's cost for mass grading and the spine road have gone up dramatically due to the delays and failure to compromise over the past five years. He indicated the County was now actively pursuing $25 million from the State of Minnesota and noted he would be participating in the bonding meetings with both the State Senate and Representative. Councilmember Holden explained the Council wasn't adding anything negative to this conversation but rather was asking clarifying questions. 3. PUBLIC INQUIRIES/INFORMATIONAL Linda Swanson, 1124 Ingerson Road, encouraged all in attendance to pause and remember what happened 22 years ago and to remember where the country was at that time. Ms. Swanson stated she was looking forward to receiving a written response to the questions she raised at the August 22 meeting. She noted the JDA Advisory meetings are not being properly summarized by staff. She recommended the JDA Advisory meetings be made open to the public. She believed residents had a right to know about what was happening in their town. She questioned why the City was keeping these meetings closed. She reported the update that was provided by City Administrator Perrault should be more detailed. She recommended the JDA not hold a community event until a developer is retained. She questioned when a developer will be signed. She stated at previous meetings the public has discussed the content within the Arden Hills newsletter. She recommended the City include more information regarding TCAAP within the City newsletter for transparency purposes. She believed the City could do better than directing residents to a website for information. She recommended highlights be listed within the newsletter from both the JDA Advisory and JDA meetings. Donna Weimann, 1406 Arden View Drive, reviewed the information that was included in the City newsletter for August and September, stating there was only a small note that directed the public to a website for information regarding TCAAP. She indicated the public would not be receiving any additional information regarding TCAAP until October, which she did not believe was right. She stated at the last JDA meeting the County stated they need somewhere between 15,000 and 18,000 deeply affordable housing units. She asked what this means for TCAAP and ARDEN HILLS CITY COUNCIL— SEPTEMBER 11, 2023 4 the City of Arden Hills. She questioned if an alternate should be attending the JDA meetings, if a Councilmember is unable to attend. She believed it was necessary to have full City representation at these meetings. She asked what the status was for the number of units for TCAAP. Kathy Sukke, 1286 Karth Lake Circle, stated she has lived in her home for the past 38 years. She reported at a recent worksession the Council discussed its budget shortfalls and that they were unsustainable. She believed the City's budget for 2024 looks challenging and the tax increases were necessary. She anticipated this would impact Arden Hills residents and this was even before the TCAAP project began. She indicated she disagreed with the Councilmember Monson completely. She questioned where the money would come from for the spine road. She believed the JDA should be wise and pursue real concrete numbers for this project. She recommended the JDA further consider how large big box proposals will impact the northern part of Arden Hills. She questioned why a traffic study had not been completed by the County in order to assist with better understanding how this project will impact the City. However, she asked if anyone would trust a traffic study that was completed by an entity that sued the City over density. She asked how much Ramsey County spent to sue the City. She noted Arden Hills spent twice for this lawsuit. She believed the JDA meeting last week was filled with propaganda noting the panelists were talking about a development that did not need zoning and would not have cars in 10 years. She recommended this development have transportation, especially for the low income people living on the site who hope to live and participate in the community. She indicated the no car scenario ignores the disabled, people with small children, elderly and those who care for them. She indicated the City already had dense housing that was not filled. She recommended the City not build a highly dense development because people may not come. She stated there was noting progressive about overspending or bonding residents endlessly due to the new Councilmembers inexperience with City government. 4. RESPONSE TO PUBLIC INQUIRIES A. Public Inquiry Response from August 28, 2023 Regular City Council Meeting City Administrator Perrault provided the Council with a response to public inquiries from the August 28 City Council meeting. He commented on the questions Ms. Swanson brought up at the August 28 meeting noting the density scenarios changed after a discussion was held between City staff, County staff, the developer and consultants based on a fit test. He noted the developer said 1,960 was the correct high end for this site and this recommendation was then made to the JDA Advisory Committee and would be further discussed at the September 27 JDA meeting. He explained the JDA would be coming forward with a Term Sheet by the end of the year. Councilmember Holden requested further information on how staff defined Term Sheet. City Administrator Perrault explained the Term Sheet would not be binding, but would be a validation of where the development was headed. He noted the Term Sheet would be approved by the JDA. 5. PUBLIC PRESENTATIONS None. ARDEN HILLS CITY COUNCIL— SEPTEMBER 11, 2023 5 6. STAFF COMMENTS A. Transportation Update Public Works Director/City Engineer Swearingen provided the Council with an update on the Lexington Avenue project. He reported Lexington Avenue was now open to traffic but will have intermittent outside lane closures as the contractor completes trail and restoration work. He noted the paving at Red Fox Road was completed today and should be fully open to traffic on Tuesday, September 12. Public Works Director/City Engineer Swearingen stated the roundabout intersection at County Road E and Old Snelling was open to traffic in all directions. He this this was still an active construction site and encouraged residents to use caution when driving through the roundabout. Councilmember Holden asked when the large mounds of dirt would be removed at the roundabout intersection. Public Works Director/City Engineer Swearingen explained restoration work would continue through September and final paving would occur at the end of September. Councilmember Holden questioned if Valentine Lake Road still required people to direct traffic. Public Works Director/City Engineer Swearingen explained people were directing traffic due to the milling operation and this was now done. He stated the final wear course had to be installed on Lake Valentine Road and this would be done at the end of September or early October. Mayor Grant asked if the City would be adjusting or raising the manhole covers that have recessed. Public Works Director/City Engineer Swearingen indicated this work would be done prior to the final wear course being installed. 7. APPROVAL OF MINUTES A. August 14, 2023, Regular City Council MOTION: Councilmember Holden moved and Councilmember Monson seconded a motion to approve the August 14, 2023, Regular City Council meeting minutes as presented. The motion carried (5-0). 8. CONSENT CALENDAR A. Motion to Approve Consent Agenda Item - Claims and Payroll B. Motion To Approve An On-Sale And Sunday Liquor License For Big Ten Supper Club, Inc. For The Period Of September 24 To December 31, 2023 C. Motion To Approve The Resignation Of Planning Commissioner Clayton Zimmerman ARDEN HILLS CITY COUNCIL—SEPTEMBER 11, 2023 6 D. Motion To Approve Payment Of League Of Minnesota Cities Membership Dues E. Motion To Approve Acknowledgment Of Twin Cities Gateway Grant Funds MOTION: Councilmember Holden moved and Councilmember Monson seconded a motion to approve the Consent Calendar as presented and to authorize execution of all necessary documents contained therein. The motion carried (5-0). 9. PULLED CONSENT ITEMS None. 10. PUBLIC HEARINGS None. 11. NEW BUSINESS A. Prohibiting Smoking and Cannabis Use Withing Open Spaces • Ordinance 2023-011 Amending Chapter 7, Section 720, Subsections 720.02—Definitions and 720.06—General Conduct • Authorization for Publication of Summary Ordinance 2023-011 Assistant to the City Administrator/City Clerk Hanson stated at its August 21, 2023 worksession, the City Council discussed public use of THC (lower potency edibles) and Adult Use Cannabis (full strength) on City park property as well as in public spaces. The City Council directed staff to work with the City Attorney to draft ordinance language prohibiting tobacco/smoking as well as consumption of lower-potency THC/hemp edibles and full strength cannabis on City-owned property. The City Attorney has drafted language pertaining to such. Note the proposed language uses the definition for Open Space Sites, which is defined in the City Code as "any public park including the parking area and driveways appurtenant thereto, any pathway, any trail, any bathing beach or any other similar public open space area owned, leased, improved, maintained, operated or otherwise controlled by the City, or by the County of Ramsey, or by any other public agency". Should the City Council adopt this ordinance amendment, a Summary Ordinance will be published in the paper in accordance with State law. MOTION: Councilmember Holden moved and Councilmember Rousseau seconded a motion to adopt Ordinance 2023-011 Amending Chapter 7, Section 720, Subsections 720.02 — Definitions and 720.06 — General Conduct pertaining to smoking and cannabis use in open spaces (City-owned). The motion carried (5-0). MOTION: Councilmember Holden moved and Councilmember Rousseau seconded a motion to Authorize for Publication of Summary Ordinance 2023-011. The motion carried (5-0). ARDEN HILLS CITY COUNCIL— SEPTEMBER 11, 2023 7 B. Set Preliminary Levy and Establish Truth-In-Taxation Public Hearing Date for Proposed Taxes Payable in 2024 • Resolution 2023-045—Preliminary Levy • Resolution 2023-046—Truth In Taxation Hearing Date City Administrator Perrault stated State law requires that cities certify their proposed property tax levies to the county auditor by September 30th. The proposed tax levy that is given preliminary approval may be lowered but cannot be increased. Therefore, it is important that the proposed tax levy provides adequate revenues to finance the 2024 Budget. The City Council needs to decide the maximum levy that it is willing to approve and then adopt the attached resolution. In December, the City will hold its Truth and Taxation Hearing and set the final tax levy. A budget workshop was held with the Council on August 21, 2023. Staff was directed to provide proposed maximum levy increase options from 0% to 16% (the amount needed to balance the General Fund). It was noted there will be another budget workshop in either October or November, prior to the final levy and budget adoption meeting in December. City Administrator Perrault explained the 2024 preliminary budget is currently being prepared assuming a 3.0% wage adjustment for all staff. It is important for the City to remain competitive in the marketplace. There is also a 10% increase assumed for health, a 4% increase for dental and a 0.0% increase for life insurance premiums. The number of positions included in the budget is increasing as the Communications Coordinator position was updated from part time to full time. It should be noted, Union negotiations are ongoing and will likely have an impact on final wage and benefit amounts. A tax levy history from 2014 through 2023 was reviewed with the Council. Staff commented further on the preliminary tax levy and budget for 2024 and recommended approval. Mayor Grant reported State Statute requires the Council to approve a preliminary budget and taxy levy by September 30 of each year. Councilmember Holden asked if the fire department has voted on their budget yet. City Administrator Perrault reported they have not voted on their budget. He understood they would be voting on this matter next week or the week after. Councilmember Holden stated she would have liked to have had information from the Fire Department before being asked to consider the preliminary budget and tax levy. Councilmember Rousseau questioned if the information presented by staff was the worst case scenario for the fire department. City Administrator Perrault indicated this was the case. Mayor Grant commented the numbers for the fire department may increase in 2025 because they were proposing three fire captains in 2024 and three more in 2025. Councilmember Monson stated this was the case noting the Fire Board would be discussing this matter further on whether or not six fire captains have to be added in one year. She anticipated the group would be adding three in 2024 and three in 2025. ARDEN HILLS CITY COUNCIL—SEPTEMBER 11, 2023 8 Councilmember Holden asked if there was any word on the Safer Grant. City Administrator Perrault explained the City would be hearing back on this in October. Mayor Grant stated he was uneasy about adding this many new fire captains in a short period of time. He believed the Fire Board needed to take a good hard look at this. He commented further on the ongoing expense of supporting these six fire captains. Councilmember Monson discussed how the Safer Grant would assist with covering the expense for the new fire captains. She commented on how the fire department was moving in the direction of being staffed full time. Councilmember Holden stated it was her understanding the fire board would be adding four fire captains, two in one year and two the following year. She commented on how there was a need to shift to a full-time department because people were no longer interested in volunteering. She hoped the department would be able to balance its staffing level with the number of calls they were responding to. She indicated she was worried about moving forward with the preliminary budget given the fact the Council does not have the final numbers from the Fire Board. She commented further on how the County and other taxing districts would impact Arden Hills residents. Councilmember Fabel reported the Council had extensive discussion on the proposed budget and the Council was now being told to fund this budget a 16% levy increase would be required. He recommended in order to honest and responsible, the Council should have a preliminary levy that would fund the proposed budget. He indicated the Council could then work to reduce this budget between now and December. He understood the proposed increase would still keep the City's tax rate lower than any other city in Ramsey County. Councilmember Monson stated when reviewing the budget and levy she understood public safety expenditures were driving the majority of the increase. She agreed the Council would benefit from having further information from the fire board and noted she would be fine waiting two weeks to consider the preliminary budget and tax levy. Mayor Grant requested staff speak to what other cities were proposing for their tax levies for 2024. City Administrator Perrault reviewed the proposed tax levies for the communities surrounding Arden Hills. He commented further on how property values have changed in the past year for residential and commercial properties in the community. Councilmember Fabel stated in addition to the assessed changes, State law assigns a different rate to commercial properties. Councilmember Rousseau explained she supported the City moving forward with a preliminary levy in a responsible manner. In addition, she supported the City filling vacant positions as soon as possible. She indicated the proposed levy did not take into consideration the Safer Grant. She noted she looked forward to hearing from the Fire Board if they would be pursuing three or six fire captains in 2024. ARDEN HILLS CITY COUNCIL—SEPTEMBER 11, 2023 9 Mayor Grant indicated he believed this information would be helpful as well. He asked if the Council supported setting the preliminary tax levy in two weeks and questioned if the entire Council would be in attendance at the September 25 meeting. The entire Council would be in attendance. MOTION: Councilmember Holden moved and Councilmember Rousseau seconded a motion to table action on Setting the Preliminary Lew for Taxes Payable in 2024 to the September 25, 2023 City Council meeting. The motion carried (5- City Administrator Perrault reported historically the Council holds the Truth in Taxation meeting at the first City Council meeting in December. He indicated the Truth in Taxation meeting for 2023 would be held on December 11, 2023. MOTION: Councilmember Holden moved and Councilmember Monson seconded a motion to adopt Resolution 2023-046 Setting Truth In Taxation Hearing Date for Proposed Taxes Payable in 2024. The motion carried (5-0). 12. UNFINISHED BUSINESS None. 13. COUNCIL COMMENTS Councilmember Monson requested an update on Just Deeds. City Administrator Perrault explained staff has requested an update from Just Deeds. He noted he could reach out to Just Deeds again to request an update and would provide this information to the Council via email. Councilmember Monson indicated she has had residents asking her questions regarding the deer population in Arden Hills. Councilmember Monson supported the City discussing the newsletter at an upcoming worksession. Councilmember Monson clarified the County would be hiring a third party to complete the traffic study for TCAAP. Councilmember Monson stated the comment regarding no cars in TCAAP may have been taken out of context. She discussed how there would be fewer cars and drivers in the future and how people may have a shared car or limited use of a car. Councilmember Monson commented on the vacancy rates in Roseville and stated some of the higher end apartments have a higher vacancy rate than others. Councilmember Monson asked if there was any interest from the Council in having the PTRC take a look at Lindey's Park. ARDEN HILLS CITY COUNCIL— SEPTEMBER 11, 2023 10 Mayor Grant supported the PTRC coming forward with a recommendation. Councilmember Holden indicated this may require another change order for the roundabout project. Councilmember Monson asked if the Council could set a deadline for corrections to the minutes in order to have the edits out on Monday. The Council supported this recommendation as a general rule. Councilmember Fabel commented on the preliminary budget and noted he supported the Council approving a balanced budget. He believed that approving a deficit spending budget was cowardly and dishonest. Councilmember Holden reported she did not believe she should have to live by Councilmember Fabel's rules. She stated the City has always had money to spare due to cost savings and found the comment about being cowardly, insulting. Councilmember Holden discussed the expense for dispensing of racial covenants. She explained while the legal fees may be free, the fees with the County were not. Councilmember Holden thanked Planning Commissioner Clayton Zimmerman for his outstanding service on the Planning Commission for the past 20+years. Councilmember Rousseau thanked the Personnel Committee in advance for their upcoming review and consideration for how to appreciate City volunteers. Councilmember Rousseau reported the PTRC had looked at putting a sledding hill at Hazelnut Park and she asked if this would be ready for 2023-2024. Public Works Director/City Engineer Swearingen stated staff would include trimming the sledding hill area for the winter months. Councilmember Rousseau questioned where the City was at with Triangle Park. Public Works Director/City Engineer Swearingen explained staff was investigating what type of formal Resolution would have to be passed. Mayor Grant stated the Primer Tracer property has a high bid of $810,000, which meant the auction will continue for another 24 hours. Mayor Grant commented on how the City generally comes in on budget and over revenue. He reported Arden Hills was not unique for this. He stated it was not uncommon for a City deficit budget and he encouraged the Council to not tell City staff or other cities that what they do was cowardly. Mayor Grant explained it was his understanding Just Deeds does the legal research for residents and puts language at the beginning of the deeds. However, the offensive language was not edited ARDEN HILLS CITY COUNCIL— SEPTEMBER 11, 2023 11 or removed from the deed. He thanked Councilmember Holden for bringing forward her concerns regarding the expense to address racial covenants. Mayor Grant asked if staff had spoken to Ramsey County regarding potential policing costs for TCAAP. City Administrator Perrault explained both Ramsey County and the Lake Johanna Fire Department have stated it would be difficult to provide the City with a number given the fact these services were a moving target. These organizations recommended the numbers presented to the City Council in August be considered going forward. Mayor Grant commented on how the City Council was considering shifting its worksession meetings to prior to each regular City Council meeting. He noted this was not uncommon, as other cities conduct their worksession meetings in this same manner. Mayor Grant explained he was not available to hold the State of the City on February 3. He asked if this event could be changed to Saturday, February 10. The Council supported this change. Mayor Grant thanked Commissioner Clayton Zimmerman for his dedicated service to the Planning Commission. Mayor Grant thanked Public Works Director/City Engineer Swearingen and the entire Public Works Department for their tremendous efforts on behalf of the City this summer. ADJOURN MOTION: Councilmember Holden moved and Councilmember Monson seconded a motion to adiourn. The motion carried (5-0). Mayor Grant adjourned the Regular City Council Meeting at 8:44 p.m. (" \ 4 �—�� ix�2 J Hanson David Grant Ci y Clerk Mayor