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HomeMy WebLinkAboutCCWS 09-20-2004 . ~ . ~~HILLS Approved: October 12, 2004 eITY OF ARDEN HILLS, MINNESOTA elTY eOUNeIL WORK SESSION MONDAY, SEPTEMBER 20, 2004, 4:45 P.M. eITY HALL eOUNeIL eHAMBERS, 1245 WEST HIGHWAY 96 1. eall To Order Mayor Aplikowski called the meeting to order at 4:45 p.m. Present: Mayor Aplikowski, Councilmembers: Gregg Larson, David Grant, Brenda Holden, Lois Rem Absent: None Staff present: City Administrator, Michelle Wolfe; Finance Director, Murtuza Siddiqui; Operations & Maintenancc Director, Thomas J. Moore; Assistant to the City Administrator, Schawn Johnson; Community Development Director, Scott Clark . Others present: Steve McDonald, Abdo, Eick, and Meyers; Bob Sundberg, Mounds View School District; Dan Hoveman, Assistant Superintendent Mounds View School District Utilitv Rate Study Mr. Steve McDonald (Abdo, Eick, and Meyers) presented the City Council with an overview of the utility rate study. Currently, the enterprise funds for the City are breaking even from an operational stand point. These projections do not take into consideration future road maintenance and street reconstruction proj ects. According to the City's Finance Director, the existing rate structure is not adequate and will not be able to accommodate future maintenance projects pertaining to the water, sewer, and storm water infrastructure. The utility rate study reviewed the City's current utility rates, projected revenues, and expenditure. This information was compared to eleven other communities in the metropolitan area. If the rates are implemented per the report, Mr. McDonald reported that on average an Arden Hills resident that uses 15,000 gallons of water per quarter (during the winter months) would see an increase of $22.74 on their quarterly water bill. A commercial water account that uses 120,000 gallons per quarter would see a rate increase of$182.20 per month. At this time, the City of Arden Hills is considered in the middle of the pack when comparing our water rates to other neighboring communities. The City's water funds are projected to be in a deficit by 2008 if the current rates are left in place. The proposed water rate increase would place the City towards the top of water rates for comparable communities. . \ \Earth \Admin \Council\Minutes\ W orksession\2004\09-20-04.doc --------- -----------..-- ARDEN HILLS CITY COUNCIL WORKSESSION September 20, 2004 2 . Sewer Rates- Arden Hills residents use an average of 24,000 gallons of water per household to operate the sewer system. This number is rather high in comparison to other communities of similar size. At the current sewer rates, the City will be operating in a deficit fund balance by 2006. Storm Water Rates- On average the storm water residential rates are $8.00 per quarter. At this rate, the City's funding source would be in a deficit by 2008. Mr. McDonald noted that an increase in rates is advised to create a positive fund balance for the future. It is also advised that inflationary factors be considered on a yearly basis when setting the utility rates. This will avoid large utility rate increases that are passed onto the residents. In comparison to other neighboring communities: 1. City of Roseville currently has a cash reserve of $18,000 and no debt. 2. City of Shoreview currently has a cash reserve of $3 million. Shoreview currently bonds for public improvement projects. Council Member Larson noted that it is very difficult to compare Arden Hills to other communities because the City handles construction projects differently. . City Administrator Wolfe also noted that Arden Hills has an aging infrastructure and tllat improvement projects will be more costly in the future. The utility rate proposal considers the sewer and storm water rates as a quarterly standard. The only portion of the bill that may fluctuate is the water rate. The water rates are based upon the property owner's consumption. The proposed rates will also be affected by changes that are made to the CIP (Capital Improvement Projects). City Council and staff will continue to review and modify the CIP list. Finance Director Siddiqui will continue to work with Abdo, Eick, and Meyers to create a final report that will be presented to the City Council in the near future. The City Council felt comfortable with a target rate of$18.00 and not the suggested rate of$22.74. Buildinl! Inspection Position Scott Clark, Community Development Director, provided a brief overview of the need to increase the current half-time building inspector position to full-time. The net effect on the budget is approximately $30,000 (salary and benefits) per year. The salary and benefit expenditures should be covered by revenues generated through the City. Currently the building inspector is a half-time position that is shared with the Lake Johanna Fire Department. At this time, the Lake Johanna Fire Department is looking at converting the existing Fire Marshall position to full-time. This in-turn would eliminate the job share position between the City of . Arden Hills and Lake Johanna Fire Department. ARDEN HILLS CITY COUNCIL WORKSESSION September 20, 2004 3 . The primary functions of a building inspector are: l. Receive and process permit applications; 2. Project inspections; 3. Final inspections; 4. Code enforcement; 5. General inspections. The City of Arden Hills is a unique metropolitan community in that the City has two major colleges, corporate campuses, City Hall and the new Ramsey County maintenance facility. Community Development Director Clark reported the inspectors are completing the routine day- to-day activities, but the City has approximately 1,200 building permits that have not been closed out. A new building inspector would be able to assist in the finalizing of any outstanding permits. It was also noted that Community Development Director Clark and Operations & Maintenance Director Moore discussed the possibility of using the new building inspector in the O&M Department if the Inspection Department's work load slows down. Mr. Clark also reviewed the possibility of hiring a part-time building inspector or sharing the position with another community. The problem with these two options is that it is difficult to hire a part-time person in this job market. Typically building inspectors are looking for full-time employment opportunities. In regards to job sharing with a neighboring community, it is always difficult to share staff members with other communities that have different ordinances and job . expectations. The proposed position would be funded by building permit fees collected for the General Fund. Building Inspector Dave Scherbel noted that the current department is operating reactively and not proactively. It is very difficult to follow-up on outstanding permits and plan reviews when you are operating in this manner. Council Member Grant asked if there would be any tmion issues if the new building inspector was asked to complete O&M related activities. It was recommended that a Memorandum of Understanding be discussed with the City and the Local 4gers. City Administrator Wolfe noted that it may be difficult to find a qualified building inspector in this job market. Members of the City Council would like to see the City pursue a full-time building inspector in the near future. School District Update Mounds View School Board Member Bob Sundberg gave a presentation to City Council and staff discussing the topic of closing and repurposing of area schools. The presentation covered the following topics: l. Mission of Mounds View Public Schools; . 2. Financial Projections; 3. Enrollment Proj ections; 4. Decision Making Process for Repurposing Schools; ARDEN HILLS CITY COUNCIL WORKSESSION September 20, 2004 4 . 5. Criteria Used in this Process; 6. Community's Role in Helping to Inform our Decision Making. Mr. Sundberg noted that in order to ensure that Mounds View students are offered the best education at an efficient cost, the school board is considering the closing or repurposing of existing school and learning centers throughout the district. The school district is experiencing problems with declining enrollment and less state funding. The declining population in the Mounds View School District is a result of fewer births in Ramsey County, an older population base, and more school options for parents and children. Other school districts that are comparable to Mounds View School District are also experiencing declining enrollments and are considering the option of closing or repurposing schools. The impact of these changes will result in schools that have larger enrollments, attendance area changes, and transportation route changes for a number of students in the district. The following criteria has been created by the Mounds View School District to determine which schools should be repurposed: l. Neighborhood Cohesiveness; 2. Geographical Balance; 3. School Feeder System; 4. Potential Cost Savings; 5. Comprehensive Programs; 6. Opportunities Afforded; . 7. Adaptability and Flexibility; 8. Repurposing Costs; 9. Transportation Costs. If schools are closed in the school district, members of the school board would like these closings to be a one time occurrence and not a yearly event. The last time the school district decided to close area schools was in 1982. The school board will be making a final decision at the December 14th meeting regarding the repurposing plan. Information can be obtained by logging onto the school district's web site at www.moundsviewschools.org Council Member Larson asked if the Ralph Reeder facility is under consideration to be closed in the near future. Mr. Sundberg noted that the school board is planning on discontinuing its practice of leasing buildings and in-turn will see if this plan results in some financial savings for the school district and that these current sites are under consideration. Council Member Larson mentioned that he thought the Community Education Department currently had a fund balance in reserves. . School Board Member Sundberg noted that he was not aware of a fund balance, but that he would look into this situation further. It has typically been a break-even fund in the past. ARDEN HILLS CITY COUNCIL WORKSESSION September 20, 2004 5 . Council Member Larson is concerned that the City of Arden Hills may lose Valentine Hills Elementary School through the closing or repurposing process. He feels that this would be a great loss for the community. It is important for neighborhood schools to have a presence in the community. It may be necessary for the school district to pass a referendum or let our state legislators know that funding is needed to educate the children of this area. Mr. Sundberg noted that this is a statewide problem. The available state funding has remained flat for a number of years. The school district feels that it must do what it can to minimize operating costs and hope that the State of Minnesota does not cut funding for K-12 education any further. Council Member Grant noted that Valentines Hills is an asset to the community, and he does not want to see the school closed. He also noted that the State of Minnesota has a funding cap of $855.00 per student. Mounds View School District is currently at the funding cap per pupi1. The State of Minnesota would have to change this law in order for funding to be increased. Also, approximately 45 students that live in Arden Hills attend Irondale High Schoo1. He asked if this option still be available to students in the future? Mr. Sundberg replied that he did not know at this time. The Mounds View School District is aware of the demographic balance at this time. Members of tile school board will consider the concerns of the local communities, but it must do what is in . the best interest of the school district as a whole. Council Member Rem reiterated that Valentine Hills residents do not want to lose their elementary schoo1. Mayor Applikowski was wondering if the school district is considering redistricting. According to Mr. Sundberg the issue is not being discussed at this time. Mayor Aplikowski also noted that this issue may be brought up at the up-coming neighborhood meetings and it would be nice to have a representative from the school district in attendance. City Council requested that staff create a resolution advocating that the Mounds View School District keep Valentine Hills Elementary open. Capital Improvement Prol!ram City Administrator Wolfe provided a brief overview of key issues regarding the five-year Capital Improvement Program (CIP) to the City Council. The CIP as a whole contains estimated budgets for the upcoming capital expenditures for a variety of projects and equipment. As the City Council and staff continue to work though the results and implementation of the utility rate study, additional work will be needed on the CIP plan. City Administrator Wolfe asked the City Council if they had any concerns or reservations . regarding the proposed CIP projects for calendar year 2005. ------- ARDEN HILLS CITY COUNCIL WORKSESSION September 20, 2004 6 . Council Member Grant noted that the City has nineteen miles of roads that need to be reconstructed. In essence a 20-year plan correlates to one mile per year. In the past, the City would complete reconstruction projects on even years and mill-overlay projects on odd years. He questioned if the City should be this aggressive with the Pavement Management Program (PMP). Operations and Maintenance Director Tom Moore mentioned that the current CIP includes costs associated with water, sewer, and storm water improvements. The proposed CIP is not just the cost for bituminous materials. The 20 year plan only included bituminous costs. Council Member Grant noted that much of the Red Fox-Grey Fox project will be milled and over-layed. It would be half the cost of completing a road reconstruction project. Council Member Larson raised concerns about having the proposed Floral and Glenhill neighborhood reconstruction projects in the same year. He would like to see the Floral project pushed back one year. Council Member Rem noted that the reason why the City adopted an every-other-year philosophy pertaining to road reconstruction proj ects was to allow the funding sources to grow and the City would have money on hand for these types of projects. City Engineer Greg Brown mentioned that repairs to the water tower, sewer mains, water mains, . and lift stations are draining down the enterprise funds. All storm sewer repairs are being included in Pavement Management Program (PMP) projects. Mayor Applikowski raised the concern that an aggressive PMP program may make the City more financially susceptible to problems down the road and that we may not have enough money on hand in case of an emergency. City Administrator Wolfe noted that some CIP projects were funded through non-revenue generating fund sources. A second concern is whether or not the City can take a year off and still reach our financial and maintenance goals and objectives. At the present time funding reserves are not used for PMP proj ects. The only new funding mechanism is the proposed utility rate increase. The City currently has a state aid balance of $300,000. Council Member Grant was wondering why staff is planning to reconstruct three lift stations next year. Mr. Moore noted that the lift stations that are scheduled for reconstruction were built in the 1950s. Lift stations typically have a life span of 30 years. At this time, these lift stations are becoming very expensive to maintain and it is becoming very difficult to locate replacement parts. . ARDEN HILLS CITY COUNCIL WORKSESSION September 20, 2004 7 . City Administrator Wolfe noted that the proposed SCADA system can be installed even if the existing lift stations are not all updated. The other lift stations can be retrofitted over time, but there is a cost to doing that. Mayor Aplikowski asked the City Council members if they would like to move forward with the CIP or slow down. Council Member Larson would like to see the SCADA system installed. He feels that the City needs to improve and maintain the infrastructure system. Council Member Holden is concerned that the new lift stations will be reaching their age capacity at the same time. The City will be in the same position thirty years from now. Mayor Applikowski noted that for many years the City was not very aggressive in improving the infrastructure system. Council Member Grant does not want to stop the CIP process but feels that it would be good to slow down project spending. Council Member Rem is also concerned about taking on too many expenditures and not having enough money in emergency reserves. . City Administrator Wolfe mentioned that the CIP can be considered a plan or a budget. The budget approach gives the City Council and staff a better understanding of how much money the City has to spend on a yearly basis. The planning aspect of the CIP programs allows staffto plan for the future. Mayor Applikowski asked the City Council if the CIP plan should be slowed down and what should the proposed utility rates be for the residents. Councilmember Larson questioned if the City should create a one-time fee increase or slowly increase the utility fees over time. Mayor Aplikowski feels that staff members should create two utility rate proposals: 1. Utility rate increases of $22 and $18 per month; 2. Scale back the CIP projects for this year; 3. Create a list of priority projects for the City Council to review (wants and needs). County Road E Bridl!e and Sidewalk Proiect City Administrator Wolfe requested feed back from the City identifying the next steps for staff to take regarding this project. The following options were reviewed: 1. Hold another neighborhood meeting; . 2. Schedule an additional work session with the City Council; 3. Proceed as directed at August 23, 2004 work session meeting. ARDEN HILLS CITY COUNCIL WORKSESSION September 20, 2004 8 . Council Member Holden was wondering if the City currently maintains the sidewalks? Tom Moore, Operations and Maintenance Director, noted that the City does maintain the sidewalks year around. The City's snow removal equipment is for sidewalks that are five feet and wider. Council Member Grant would like to see a cost comparison of the proposed sidewalk if it was placed on the north side of County Road E. He also believes that this project should be delayed. Mayor Aplikowski was wondering if the sidewalk is a safety concern. Should the neighbors be asked to provide more input on this project. The neighborhood needs to buy into this project. Council Member Larson mentioned that the proposal is part of the City's master plan. The south side of the street is not economically feasible due to the grading and utility lines located in this area. The proposed trail would run along Snelling Avenue and connect to two of the City's parks. People are currently walking in the street. Installing sidewalks in this area would benefit the City of Arden Hills as a whole. It is the City Council's job to make difficult decisions. Council Member Holden stated that the residents she has spoken to feel that the sidewalk is a waste oftax dollars. Council Member Larson noted the PTRC (Parks, Trails, Recreation Commission) would not . have recommended this proposal without the new sidewalk. Mayor Aplikowski stated that the bridge and sidewalk are not a package deal. The bridge was approved by the PTRC before the sidewalk. Engineer Brown mentioned that state funding may available for the bridge and sidewalk installation. The Council could request that eighty percent of the costs be covered by cooperative agreement dollars. The proj ect scope must be finalized as a bridge or bridge and sidewalk project before the City can seek funding from the State of Minnesota. Mayor Aplikowski stated that there was a consensus and both items will be brought to a future Council meeting for action. The affected neighborhood will be notified ofthis Council meeting. Replacement Vehicles Council Member Holden requested that she be able to view a piece of equipment that is scheduled for replacement. She wants to ensure that the City is not replacing equipment on the basis of age alone. Maintenance costs should be the primary reason why a piece of equipment is replaced. City Administrator Wolfe noted that a piece of equipment will not be replaced solely on the basis of age. . City staff is in the process of creating a more accurate system for monitoring vehicle records. This will be a valuable tool in tracking vehicle expenditures in the future. ARDEN HILLS CITY COUNCIL WORKSESSION September 20, 2004 9 . eivil Enl!ineer City Administrator Michelle Wolfe reviewed the hiring of a new Civil Engineer with the City Council. City Administrator Wolfe noted that depending on the number and type of projects, this may not be a break-even proposition for the City. The salary range that the City is offering for this position is comparable to other communities and that should help in finding quality candidates. The recruitment process will begin shortly. eouncil Reports Council Member Larson 1. Attending the TCAAP meeting scheduled for September 21" but will be out of town on business for the rest ofthe week. Council Member Holden 1. Requested that City staff check the web links on the web site to make sure that they are operational. 2. Newsletter articles are due this week. 3. Northwest Youth and Family Services has taken over the social service programs that are presently being offered by Life Span. Staff Reports Finance Director Murtuza Siddiqui reported that tbe Assessment Task Force will begin . evaluations of the refuse services that are presently being provided in Arden Hills. The meeting adjourned at 9:45 PM Respectfully submitted by Schawn P. Johnson, Assistant to the City Administrator. ~. .... ~~JJ1A~ 4~rly~cfR Michelle Wolfe, CITY ADMINISTRATOR .