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HomeMy WebLinkAbout05-28-24-R -A DEN_ HILLS Approved: June 24, 2024 CITY OF ARDEN HILLS, MINNESOTA REGULAR CITY COUNCIL MEETING MAY 28, 2024 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; Finance Director Joua Yang; and City Attorney Cole Birkeland PLEDGE OF ALLEGIANCE 1. APPROVAL OF AGENDA MOTION: Councilmember Monson moved and Councilmember Holden seconded a motion to approve the meeting agenda as amended. The motion carried (5-0). 2. TCAAP/RICE CREEK COMMONS UPDATE City Administrator Perrault stated The Joint Development Authority has not met since the last Council meeting, the energy advisory committee did meet and received an update from its consultant. The bulk of the update revolved around options pertaining to pursuing design guidelines regarding sustainability or higher level certifications, such as, LEED for Communities. More information will need to be gathered and discussed by the EAC and a recommendation will need to be made to the JDA. Per the last update, we know the State did not consider a bonding bill and no money was allocated towards RCC. Since, Staff on both the City and County side have been discussing if there is a possible avenue forward with a public/private partnership. Options including different iterations of developer equity, TIF, abatement have been discussed but have not gained significant traction. The crux of the issue comes down to a $40 million gap in infrastructure financing relating to the mass grading and soil correction. Most recently, Alatus updated the parties that they are working with a private partner on a potential funding mechanism that would privately fund the mass grading and soil correction and allow Alatus to take down the ARDEN HILLS CITY COUNCIL—MAY 28, 2024 2 land at one time. This discussion is still preliminary, and they are working with their partner to fine tune the numbers, we expect to hear back in coming weeks if this option is feasible or not. Councilmember Holden explained she asked staff if the $5 million deficit for TCAAP took into consideration affordable housing and she understood this was the case. She requested staff see what the affordable housing assumptions were. City Administrator Perrault stated he could investigate this further and could report back to the Council. Councilmember Holden questioned if a staff meeting was held for TCAAP and asked what the phases were for this project. City Administrator Perrault reported this has not been spelled out. He explained at this time Phase 1 included the horizontal infrastructure. He stated the next phases have yet to be determined. 3. PUBLIC INQUIRIES/INFORMATIONAL Mark Kelliher, 3712 Chatham Court, stated he understood the Council would be addressing the budget tonight. He explained that on April 8, he expressed strong support for the development of TCAAP/Rice Creek Commons but only if the numbers work to the City's advantage. He indicated he previously presented the Council with a projected budgetary impact of building 1,989 units on TCAAP. He stated this summary was gleaned from the City's consultants and was not his work. He reported later in that meeting (April 8), Councilmember Fabel stated he did not like the numbers that were used. He indicated he did not like the numbers either and this was why he brought them to the Council's attention. However, he stated these were the projections that were used when the slate moved forward with the 1,989 units. He understood the Council directed staff to massage the consultants' original work, but the important point is, the slate did not wait for these revisions. Rather, the slate approved the 1,989 units based solely on the consultants' projections. He reported the consultants' numbers show a half million deficit in some years and this would worsen should the City approve tax increment financing. The point he wanted to make at this meeting was that for anybody who supported the 1,989 units, having the knowledge of the impact this project would have on the City's budget, does not understand their fiduciary duty. He stated Councilmember Monson does not have a professional background to understand the role of fiduciary and Councilmember Rousseau has shown she is without a clue because she is on record telling residents the finances will be worked out over the next 10 years or so. However, Councilmember Fabel was a seasoned attorney and he should well know the role of fiduciary. He called on Councilmember Fabel to awaken the slate from its current ethical slumber. He indicated the Council's focus, when voting on any topic, should always be what is best for the City, not what is best for the County or the developer. He urged the Council to begin acting as fiduciary stewards so the Council does not tank the City in its haste to launch the Rice Creek Commons project just because they fear the results of the upcoming election. He stated he printed out the definition of a fiduciary and would leave this with the City Clerk. Linda Swanson, 1124 Ingerson Road, stated her comments were being made on the heel of Gregg Larson's comments. She understood the slate wanted people to believe they were always caring people, but this wasn't how it is. She stated it was easy to point fingers at others, versus looking at your own faults. She agreed there is disharmony amongst the Council, but pointed out ARDEN HILLS CITY COUNCIL—MAY 28, 2024 3 that the slate contributes to this disharmony. She indicated this was not just words as disrespect can be words or actions, or lack thereof. She commented she has stood before the Council on numerous occasions to bring up the disrespectful actions of the slate members. She noted Councilmember Fabel roles his eyes when residents speak, makes noises and doesn't show interest. In addition, he makes derogatory comments about residents and has stated topics like TCAAP were too complicated for residents to understand. She expressed concern with the fact Councilmember Fabel had determined that neither the Mayor nor the public would be allowed to participate or watch any of the JDA Advisory Committee meetings, where the basic aspects of the project were being discussed. She did not like that Councilmember Fabel was referring to residents as being immoral when they don't agree with him regarding TCAAP. She did not understand why Councilmember Rousseau was making disparaging remarks regarding Councilmember Fabel's hearing, when Councilmember Fabel did not state there is a concern. She expressed frustration with the fact Councilmember Rousseau was heard complaining about residents who regularly attend City Council meetings. She questioned what else Councilmember Rousseau was saying when not overheard. She did not appreciate how Councilmember Rousseau listened to other Councilmembers and how she made snide remarks to the Mayor. In addition, she did not appreciate how Councilmember Rousseau was not inclusive, as she had reduced the number of committee volunteers when they disagreed with her. She commented on how the slate had removed a PTRC member and the Planning Chair. She questioned why Councilmember Rousseau was packing up and leaving Council meetings before all Councilmembers had a chance to speak. She asked why Councilmember Rousseau had stated she was pro-development and that the Mayor and Councilmember Holden were not. She questioned why a letter was sent to a local legislator about current proposed legislation, implying this was the City's position without discussion and not responding to a Councilmembers request for information. She reported the slate, as a group, was using their quorum to eliminate duties and responsibilities of a duly elected Mayor. She indicated this was disrespectful to the Mayor and the residents. She encouraged the slate to stop pointing their fingers at the Mayor and Councilmember Holden without first looking at the disharmony they themselves bring to the City Council. 4. RESPONSE TO PUBLIC INQUIRIES Mayor Grant commented on the hearing equipment in the Council Chambers. He reported a box was ordered to transmit to hearing aids in December of 2022 and this was just under $400. He indicated he was uncertain when this was installed in the dais, but he recalled it was shortly after the new Council began meeting in January of 2023. He indicated this solution was tried for a year with varying degrees of success. When he learned the varying degrees of success were not acceptable, in December of 2023, new equipment was purchased at a cost of$3,000. He stated this system offers both a neck loop and a hip pack or a separate option to be paired with a phone. He commented that a dedicated phone was also provided. He stated at the last meeting it was mentioned that things were not going well for a member of the Council. He explained he met with this Councilmember along with City Administrator Perrault and members from Nine North and on Wednesday of last week, testing was conducted. He reported frequencies were changed to make things better. He indicated the microphones have been turned up as well. He wanted people to know that subsequent to December of 2023, he was not made aware that anyone was having difficulty with hearing. He explained after he was made aware of this fact, testing was done and hopefully improvements were made. Mayor Grant indicated at the last Council meeting it was noted two inappropriate speakers were allowed to address the Council. He clarified for the record, this occurred in January and these ARDEN HILLS CITY COUNCIL—MAY 28, 2024 4 individuals were let into the meeting via Zoom. He explained the Zoom links were controlled by the City Administrator. He stated the first speaker rambled about people in Washington and what positions they held. He noted when the speaker got inappropriate, the person was cut off as expeditiously as possible. He commented what some people may not know is that after the first speaker, he encouraged the City Administrator to be ready to cut the additional Zoom callers. He noted the first statement out of the next Zoom caller's mouth was completely inappropriate and he was cut off immediately. Mayor Grant reported at the last meeting he was told to do better when it comes to accomplishments. He explained he has been the Mayor of Arden Hills since 2010. He then highlighted some of his accomplishments over the past 14 years, including 33 major development projects and 7 new city programs. He indicated he had led the City through some difficult times, which included COVID and a housing crisis. He stated he was very proud of the fact the City had achieved a AAA bond rating in 2018, noting this was extremely difficult for a community of this size to achieve. He reported he understood there may be disharmony on the current Council, but he took issue with what was stated about him and his accomplishments as Mayor. 5. PUBLIC PRESENTATIONS A. 2023 Financial Statements Aaron Nielsen, MMKR, reviewed the 2023 financial statements with the Council. He reported the City received a clean or unmodified opinion. He reviewed the financial statements, fund balances and provided a summary of net position for the City in further detail. He commended the City for their strong financial position and stated he was available for comments or questions. City Administrator Perrault recognized Finance Director Yang for doing a wonderful job on the 2023 audit. Mayor Grant agreed and commended staff for receiving a clean opinion on this audit. Councilmember Holden stated the only way to eliminate the internal control issue would be to hire two more staff members. Mr. Nielsen reported this was the case. Councilmember Fabel asked if recommendations were made to the City regarding the limited segregation of duties. Mr. Nielsen indicated this would require the City to hire additional staff members in order to cross reference and cross train. He reported there were no instances of non-compliance for the City. He commented on how the City Administrator's background helped with the City's internal controls. Mayor Grant thanked Mr. Nielsen for this detailed presentation. 6. STAFF COMMENTS A. Transportation Update ARDEN HILLS CITY COUNCIL—MAY 28, 2024 5 Public Works Director Swearingen reported there was a road closure on Arden View Drive off of Hamline Avenue. He stated the road should be open later this evening or tomorrow. Councilmember Holden asked how many days the rain put the City behind. Public Works Director Swearingen stated the rain has not pushed the project back, rather it has been the pond dredging that has been affected. 7. APPROVAL OF MINUTES A. May 13, 2024, City Council Work Session B. May 13, 2024, Regular City Council MOTION: Councilmember Monson moved and Councilmember Holden seconded a motion to approve the May 13, 2024, City Council Work Session minutes as amended and May 13, 2024, Regular City Council meeting minutes as amended. The motion carried L2h 8. CONSENT CALENDAR A. Motion to Approve Consent Agenda Item - Claims and Payroll B. Motion To Approve First Quarter Financials C. Motion To Approve 2023 City Financial Statements And Audit D. Motion To Approve Professional Services Agreement For Zoning And Subdivision Ordinance Revisions With HGKi E. Motion To Approve A 6 Month Extension Until November 22, 2024 For A Variance At 1475 Dawn Circle—Planning Case 23-008 F. Motion To Adopt Resolution 2024-029 Approving Variance At 1511 Dawn — Planning Case 24-008 G. Motion To Approve Purchase Of 2024 Capital Equipment Replacements (Trailer And Roller) H. Motion To Approve Ramsey County Fleet Service Invoice For Annual Arden Hills Public Works Equipment Fleet Repairs 1. Motion To Approve Purchase Of Hydrant Mod Kits J. Motion To Authorize The Hiring Of A Temporary Office Assistant MOTION: Councilmember Monson moved and Councilmember Holden 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 ARDEN HILLS CITY COUNCIL—MAY 28, 2024 6 A. Special Assessment Hearing - 1370 Colleen Avenue — 2024 PMP Street And Utility Improvements Project Public Works Director/City Engineer Swearingen stated on February 12, 2024, the City Council adopted Resolution 2024-008 Approving the Plans and Specifications and Ordering the Advertisement for Bids for the 2024 PMP Street & Utility Improvement Project. Bids were solicited and opened on March 6, 2024. A portion of the costs for the 2024 PMP Street & Utility Improvement Project are proposed to be assessed against the benefitting properties according to the City's Assessment Policy. In order to assess these costs, the City must follow the process outlined in State Statute 429. On March 11, 2024, after the bids were opened, the City Council adopted Resolution 2024-012 Declaring Costs to be Assessed and the Assessment Hearing was held on April 8, 2024. Public Works Director/City Engineer Swearingen reported the Assessment Roll related to Resolution 2024-012 was then amended to remove the property at 1370 Colleen Avenue. City staff and Council received an objection of the proposed assessment amount from the property owner and Council gave direction to review the objection at a later meeting, which was held on May 13, 2024. At that meeting, the City Council adopted Resolution 2024-026, Declaring Costs to be Assessed for the property at 1370 Colleen Avenue deferring the assessment for the second lot for 20 years or until the property is sold or subdivided with the remaining REU being charged to the property. A public hearing prior to adopting the assessments is a requirement of State Statute 429. Public Works Director/City Engineer Swearingen explained the project is proposed to be assessed consistent with the City's Assessment Policy and past practices, which states that 50% of the costs for roadway improvements will be assessed in residential areas, with the remaining portion financed by City funds. Financing for the project is consistent with City policy and past practice and is summarized below. The current assessment policy states that the typical overhead rate for a public improvement project is 37% of the construction costs. Staff believes this percentage is higher than necessary and recommends that approximately 27% of the construction costs be used as overhead when calculating the assessment rates. Staff has made this recommendation on the past PMPs since 2021 and was applied to the 2024 PMP assessments on April 8, 2024. The breakdown of the overhead costs can be found below. Public Works Director/City Engineer Swearingen indicated the Council must establish the interest rate at tonight's Council Meeting. Many cities set their interest rate for assessments at two (2) percentage points over the bond interest rate. The City's assessment policy states that the interest rate used for the assessment shall be designated at the prime rate plus two (2) percentage points. For the past four PMPs, the assessment interest rates were set at two (2) percentage points over the assumed bond interest rates which were based on current market conditions at the time, the City's AAA bond rating,plus 15 basis points. 2022 PMP - Snelling Ave N.: 5.5% 2022 PMP - Arden Oaks: 5.5% 2021 PMP: 3.15% 2018 PMP: 5% Public Works Director/City Engineer Swearingen reported our current assumed bond interest rate is 2.75% and the prime rate is 8.50%. Staff would recommend following the City's ARDEN HILLS CITY COUNCIL—MAY 28, 2024 7 assessment policy and setting the assessment rate at 4.75%, which is also the rate that was set at the April 8, 2024 assessment hearing for the 2024 PMP. The total project costs were analyzed for the assessable cost. The assessments related to the project are calculated in accordance with the City's Assessment policy, half of the street project cost for residential properties and dependent on the type of pavement rehabilitation. Reclamation Areas: 50% Estimated Street Project Costs = $519,870 Residential Equivalent Units = 86 Assessment Rate per Unit= $6,045 Proposed assessment for 1370 Colleen Avenue= $6,045 x 2 REUs = $12,090 • 1 REU charged at adoption of the proposed assessment roll • 1 REU deferred for 20 years or until the property is sold or subdivided Public Works Director/City Engineer Swearingen reported as provided for in State Statute, no appeal may be taken as to the amount of any assessment adopted unless a written objection signed by the affected property owner is filed with the City at or prior to the assessment hearing. After the adoption of the assessment roll, property owners who have submitted an objection in writing have 30 days to serve notice of an appeal to the City, and within 10 days after serving notice to file with the District Court. Mayor Grant opened the public hearing at 7:48 p.m. With no one coming forward to speak, Mayor Grant closed the public hearing at 7:49 p.m. 11. NEW BUSINESS A. Resolution 2024-028 Adopting Special Assessment Roll For The 2024 PMP Street And Utility Improvements Project— 1370 Colleen Avenue Public Works Director/City Engineer Swearingen stated this item was presented under agenda Item 10A. He requested the Council provide staff with direction on the assessment rate for the assessment roll and the deferred assessment. He recommended the Council adopt the Assessment Roll for the 2024 PMP Street& Utility Improvement Project. Councilmember Monson asked if staff needed separate motions for the assessment rates. Public Works Director/City Engineer Swearingen reported he would need separate motions for the assessment rates for the deferred assessments. City Administrator Perrault clarified that only one motion would be needed because the proposed interest rates were spelled out within the Resolution. Councilmember Rousseau indicated she supported the proposed interest rates as recommended by staff. ARDEN HILLS CITY COUNCIL—MAY 28, 2024 8 MOTION: Councilmember Monson moved and Councilmember Holden seconded a motion to adopt Resolution 2024-028, Adopting the Assessment Roll for the 2024 PMP Street & Utility Improvement Project related to 1370 Colleen Avenue as presented. Councilmember Holden stated she would be voting against this motion. She indicated she did not believe these residents should be penalized $6,000 if they choose to sell their property. She explained she supported the fee being charged if the property was being subdivided. Councilmember Monson commented it was not uncommon for buyers to pay outstanding assessments at the time of a sale. Councilmember Holden reported she has also seen sellers required to pay outstanding assessments before being able to sell their property. Councilmember Fabel asked if this property was currently taxed as a single parcel. Public Works Director/City Engineer Swearingen reported this was the case. The motion carried 4-1 (Councilmember Holden opposed). 12. UNFINISHED BUSINESS None. 13. COUNCIL COMMENTS Councilmember Rousseau explained prior to starting her term on the Council she was made aware that Arden Hills rarely attended the meetings for Mayors in Northwest Ramsey County. She indicated this was continuing even when the City was hosting the meetings. She supported the City having a representative at these meetings and asked that if the Mayor was unable to attend, that the Mayor Pro-Tem be made aware. Mayor Grant indicated he missed one meeting but has attended all previous meetings. Councilmember Rousseau stated a worksession was held prior to this meeting. She explained there were several topics the Council did not get to, including the donation from the Spring Lake Park Lions, the Council Code of Conduct and the strategic planning process. She requested the Council continue the worksession after the regular Council meeting adjourns in order to address these matters. Councilmember Rousseau asked where the City was projected to be at with revenues at the end of the year. Finance Director Yang stated she would look into this and would report back to the Council. Councilmember Fabel explained the Council was exposed to a series of baseless, poorly educated attacks on some of the Councilmembers. He stated he was not inclined to respond to these. Rather, he considered the source. He commented there was a specific allegation that there ARDEN HILLS CITY COUNCIL—MAY 28, 2024 9 has been ethical or fiduciary slumber. He reported this was a foolish and irresponsible accusation to be made against Councilmembers Monson and Councilmember Rousseau. He reported Councilmembers Monson and Rousseau were extremely ethical and conscious of their fiduciary responsibilities. He was of the opinion both Councilmembers were serving the City very well. Councilmember Fabel thanked Senior Communications Coordinator Luke Cordona for his tremendous efforts on behalf of the City. He then reviewed the most recent edition of the City newsletter. Councilmember Fabel stated the City Council would be meeting jointly with the Mounds View City Council in order to discuss joint parks and recreation services. He commented on how a community center would be nice for Arden Hills. He made the public aware that residents of a certain age in Arden Hills were able to become members of the Shoreview Community Center. Councilmember Holden reported Silver Sneakers was one of the programs that allowed Arden Hills' residents to participate in and this was available at both the cities of Mounds View and New Brighton. Councilmember Holden commented that everyone has the right to speak during Public Inquiries. Councilmember Holden explained in the January/February Minnesota Conservation Volunteer book Linda Amble submitted a photograph from Cummings Park in Arden Hills. Councilmember Holden reported she sent an email to the City Administrator after the last City Council meeting after learning Councilmember Fabel was having difficulty hearing again. She indicated the City has done many things to accommodate Councilmember Fabel. She was glad the Mayor and staff had met with Councilmember Fabel to address this concern. She encouraged Councilmember Fabel to speak with the City Administrator if he has any other concerns in the future. Councilmember Holden apologized to residents for the last Council meeting, noting there was prolonged silences and lack of discussion. Councilmember Holden thanked the Mayor for addressing his accomplishments. She stated the City also does very well with its' I&I and roads. She appreciated the fact the evaluation of the City's roads was at 70%, which was very high for a community of this size. She commented on how the City's streets and infrastructure was a direct reflection on the City's leadership. Councilmember Holden reported the Tires Plus store was now a new tire store. She appreciated how there were new businesses coming to Lexington Avenue. Councilmember Monson commented she had spoken with the City Administrator to see if there were funds to transfer over for parks and it was her understanding there was not. Mayor Grant explained the General Fund ended at 47% for 2023 and funds would not be transferred unless this number was over 50%. Councilmember Monson explained she would support extending the worksession after the Council meeting. ARDEN HILLS CITY COUNCIL—MAY 28, 2024 10 Councilmember Monson provided an update from the Lake Johanna Fire Department. She indicated the fire relief association approved a benefit increase for firefighters. She reported the fire station application had been submitted to the City and could potentially be reviewed by the Planning Commission in July. Councilmember Monson reported she attended the Touch a Truck event with her children and stated this was one of their favorite City sponsored events. Councilmember Monson commented the State did not approve a bonding bill and therefore Ramsey County did not receive any funding for Rice Creek Commons. Mayor Grant clarified there was no bonding bill, not that a bonding bill was not approved by the State. Councilmember Monson stated this situation would create additional hurdles for the project. She thanked Kelly Moller and John Marty for working to address this issue. Mayor Grant stated he received calls after the May 13 City Council meeting regarding comments that were made regarding franchise fees. He explained the City Council had discussed the survey results regarding franchise fees at the May 13 work session and noted there were four Councilmembers that supported moving forward with franchise fees as long as they were directed to the fire department. Mayor Grant reported Senior Communications Coordinator Cordona had been with the City now for one year. He thanked Mr. Cordona for his efforts on the City's new website. Mayor Grant discussed how Silver Sneakers was available to Arden Hills' residents on a Medicare supplement or Medicare advantage plan. Mayor Grant commented he attended the Touch a Truck event with his two grandsons. He thanked the City for having a school bus at this event. He thanked the Shoreview/Arden Hills Lions Club for providing and staffing the bounce houses. Mayor Grant stated he was saddened by the fact Subway had closed its doors in Arden Hills. Mayor Grant indicated a Councilmember could not stay after this meeting, which meant the worksession items that were not addressed this evening would have to be carried over to the next worksession. Councilmember Monson asked if the Council would be able to stay after the next Council meeting in the event not all worksession items are addressed. Councilmember Holden reported she would be available to stay after the next Council meeting. She recommended that if this were to become Council practice that notification be printed of the Council agendas and that the meetings be properly noticed. Mayor Grant asked if the Council could recess and reconvene a worksession on the same night. ARDEN HILLS CITY COUNCIL—MAY 28, 2024 11 City Attorney Birkeland explained if the worksession was recessed, the Council could reconvene to adjourn the meeting. Mayor Grant noted the meeting had been adjourned. Councilmember Holden excused herself from the meeting. Councilmember Rousseau clarified that three other Councilmembers had not consented to the adjournment of the worksession. Councilmember Monson agreed, stating she hoped going forward that there was an expectation worksessions would be continued if not all items on the worksession agenda were addressed. She was of opinion the actions taken at tonight's worksession were done hastily. Councilmember Rousseau expressed concern with the fact one Councilmember could not meet earlier and that same Councilmember could not meet later. She stated there was City business that had to be done and this had to be balanced. She asked that the Mayor find a way to move items forward. ADJOURN MOTION: Councilmember Monson moved and Councilmember Fabel seconded a motion to adjourn. The motion carried (4-0). Mayor Grant adjourned the Regular City Council Meeting at 8:24 p.m. PI'L Ju e Hanson David Grant Ci Clerk Mayor