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HomeMy WebLinkAboutCC 05-11-1998 . MINUTES CITY OF ARDEN HILLS, MINNESOTA CITY COUNCIL MEETING MAY 11, 1998 7:30 P.M. - NEW BRIGHTON CITY COUNCIL CHAMBERS CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor Dennis Probst called to order the regular City Council meeting at 7:30 p.m. Present: Mayor Dennis Probst, Councilmembers Beverly Aplikowski, Dale Hicks, Susan Keirn, and Paul Malone. Also present were City Administrator, Brian Fritsinger; City Accountant, Terry Post; Public Works Superintendent, Dwayne Stafford; Parks and Recreation Director, Cindy Walsh; and Recording Secretary, Salima Khakoo. ADOPT AGENDA Councilmember Aplikowski moved and Councilmember Hicks seconded a motion to adopt the agenda for the May II, 1998, Regular City Council meeting as presented. The motion carried unanimously (5-0). e APPROVAL OF MINUTES MOTION: A. April 13, 1998, Regular Couucil Meeting B. April 20, 1998 Council Worksession Minutes C. April 27, 1998 Regular Council Meeting Councilmembers Malone and Aplikowski, and City Administrator, Brian Fritsinger, requested the following corrections to the April 13, 1998 Regular Council Meeting minutes: . Page 3, paragraph 5, replace "prior written of" with "prior written consent of' Page 3, paragraph 7, replace "sets of three antennas" with "sets of panel antennas" and delete rest of the sentence Page 4, paragraph 1, replace "could" with "would" Page 4, paragraph 5, replace "as far back as possible" with "close to the top of the tank as possible" Page 4, paragraph 9, replace "higher than" with "higher on the water tower, for example, on the top instead of under the bowl, than" Page 4, paragraph 9, replace "because the proposed antennas function at a different frequency rate" with "allowed" Page 5, paragraph 2, replace "the location of the antennas would need to be altered" with "the applicant would be responsible for ensuring visibility" Page 5, paragraph 5, replace "of' with "on" Page 5, paragraph 7, replace "They" with "Ramsey County" Pagc 6, paragraph 4, replace "that the article" with "that she believed the article" Page 6, paragraph 4, replace "that the City" with "that she believed the City" . . . ARDEN HILLS CITY COUNCIL - MAY II , 1998 2 Pagc 6, paragraph 4, replace "that the City" with "that she believed the City" Councilmember Malone and Mr. Fritsinger requested the following corrections to the April 20, 1998 Council W orksession minutes: Page 2, paragraph 6, replace "items for" with "items in the facilitator's report for" Page 3, paragraph 6, replace "disciplinary sanction" with "managerial accountability" Councilmember Malone and Mr. Fritsinger requested the following corrections to the April 27, 1998 Regular Council Meeting minutes: Page 3, paragraph 8, replace "damage" with "damage or collapsed" Page 5, paragraph 6, replace "frontage road" with "Interstate 694 frontage" Page 8, paragraph 3, delete "Mr. McGraw stated he is not going to beg for his tunding" Page I 0, paragraph 1, replace "The Arden Hills Fire Department" with "The Lake Johanna Volunteer Fire Department" Page I 0, paragraph 1 0, replace "the EA W" with "the Wispark EA W" MOTION: Councilmember Keirn moved and Councilmember Aplikowski seconded a motion to approve the April 13, 1998, Regular Council Meeting, the April 20, 1998 Council Worksession Minutes, and the April 27, 1998 Regular Council Meeting as amended above. The motion carried unanimously (5-0). CONSENT CALENDAR A. Claims and Payroll B. Newsletter Committee Appointment, Betty Mullin Councilmember Aplikowski suggested that the Newsletter Committee may want to diversify its membership to include residents from various precincts. Councilmember Aplikowski stated that the original idea was to have representation from all precincts. Mayor Probst stated ifCouncilmembers knew of potential residents from the unrepresented precincts who would want to serve on the Newsletter Committee, they should encourage these residents to join the Committee. MOTION: Councilmember Malone moved and Councilmember Keirn seconded a motion to approve the Consent Calendar as listed above and authorize execution of all necessary documents contained therein. The motion carried unanimously (5-0). PUBLIC COMMENTS Mayor Probst invited those present to come forward and address the Council on any items not alrcady on the agenda. There were no public comments. . . . ARDEN HILLS CITY COUNCIL - MAY 11, 1998 3 UNFINISHED AND NEW BUSINESS A. Purchase of Air Compressor Mr. Dwayne Stafford, Public Works Director, stated that the City of Arden Hills currently owns one Sullair brand portable air compressor, rated at 125 cubic feet per minute, CFM. This unit is approximately fifteen years old and has a history of mechanical problems. Typically, a compressor rated around 200 CFM would be suitable as an all around choice for Public Works type activities. Public Works had budgeted $13,000 for the replacement of this compressor with a 185 CFM model in 1998 and that amount would be adequate for that size unit. Mr. Stafford explained that the City of Arden Hills Park Director has asked that Public Works consider stepping up to a 250 CFM size which would enable Parks to blowout their irrigation systems with City-owned equipment. Currently, Parks rent a 250 CFM unit at $] 35 per day, for one day, to service Perry Park. If irrigation systems are added to Highway 96 and Round Lake Road, those rental fees could be in excess of $500 per year. Parks has agreed to provide funding for the difference in costs between a 185 and a 250 CFM unit, from monies budgeted for Parks equipment. Mr. Stafford stated that Staff recommends the $14,078.] 0 purchase of a LeRoi 250 CFM portable air compressor from Carlson Equipment Company. $13,000.00 ofthis purchase is a budgeted capital item from Parks Maintenance. Staff also seeks Council approval to place the current compressor at the State of Minnesota auction later this year. Mayor Probst asked Mr. Stafford to explain the reasons why Staff was recommending this particular air compressor. Mr. Stafford responded that crewmembers have evaluated the two lowest priced compressors and believe the LeRoi brand compressor is the best choice for thc following reasons: 1. The Ingersol-Rand sales person from Aspen Equipment Company, the lowest bid, indicated Aspen holds the State of Minnesota Contract to provide compressors to the State and participating State Cooperative Purchasing Venture. Upon verification with the State, this was found to be inaccurate. 2. Upon visual inspection of both machines, several features stood out on the LeRoi brand machine which appear superior to the Ingersol-Rand compressor. The cooler for the oil and water are side by side. The LeRoi brand has a heavier axle and brackets as well as a better wiring system. 3. The City of Arden Hills has developed a good relationship with Carlson Equipment Company, the LeRoi equipment distributor. 4. The Cities of Roseville, Columbia Heights, Saint Paul and Blaine, have purchased LeRoi compressors recently. Staff from Blaine and Roseville have expressed that they are pleased with the performance of the LeRoi compressor. ARDEN HILLS CITY COUNCIL - MAY 11. 1998 4 Mayor Probst clarified that the Ingersol-Rand and the LeRoi were not comparable air . compressors. The LeRoi brand had superior features and fit the needs of Staff. . . MOTION: Councilmember Malone moved and Councilmember Aplikowski seconded a motion to approve the purchase of a LeRoi brand, 250 CFM portable air compressor from Carlson Equipment Company in thc amount of$14,078.10, and place the current compressor at the State of Minnesota auction. The motion carried unanimously (5-0). B. Approval of Operations Transfers for 1997 Mr. Terrance Post, City Accountant, stated that the adopted 1997 Budget called for several operating transfers between funds. In November, 1997, the foIlowing budgeted operating transfers were booked: 1. 2. 3. 4. $ 16,300.00 $118,750.00 $ 10,000.00 $ 47,500.00 From General Fund No. 101 to Program Fund No. 226 From General Fund No. 101 to Municipal Buildings No. 408 From General Fund No. 101 to Capital Equipment No. 411 From General Fund No. 101 to Fire Equipment No. 412 The total transfer amount is $192,550.00 Mr. Post explained in addition to these budgeted operating transfers, Staffrecommcnds Council approval of the following operating transfer/debts payments. A. In light of the positive financial performance of the General Fund, increase the operating transfer from General Fund No. 101 to Capital Equipment Fund No. 411 an additional $18,500.00 to a total of $28,500.00, wbich is the samc level as prior years. B. Because ofthe Cleveland Avenue bridge reconstruction delays, transfer $48,000.00 of levied funds from General Fund No.1 01 to PIR Fund No. 501. These funds would then be transferred back from the PIR Fund to the General Fund at such a time when bridge funds would be required. C. In light of the positive financial performance of the General Fund, transfer an additional $181,250.00 from General Fund No. 101 to Municipal Building Fund No. 408. This action would be similar to the December 31, 1996 extraordinary operating transfer in the amount of$266,500.00. The result of this 1997 action would leave an approximate General Fund balance of $550,000 or approximately 24% of the budgeted 1997 expenditures. D. A $31,665.00 operating transfer from the Community Services Fund No. 225 to the Program Fund No. 226 was budgeted to subsidize the recreation program operating deficit. However, based upon positive Program Fund results, Staff recommends reducing the transfer to $23,000.00. ARDEN HILLS CITY COUNCIL - MAY 11 , 1998 5 E. During 1997, Fund No. 522 was closed and fund assets and liabilities were transferred into the Economic Development Authority. The $324,999.88 liability to the PIR Fund for Kern Milling site project costs were split between TIF District #1 -$99,999.88; and TIF District #2 -$225,000.00. Staff recommends a debt payment in the amount of $39,999.88 from Fund No. 703, TIF District #1, to PIR Fund No. 501. The result ofthis action would leave an EDA December 31, 1997, liability to the PIR Fund for Kern Milling project costs of$285,000.00. . F. TIF District #2, Round Lake Office, incurred significant Gateway development costs during 1997. Since bonds for these public improvements were not issued until 1998, Fund No. 704 has a need for short-term financing. Staff recommends a $200,000.00 cash advance from the PIR Fund No. 501 to TIF District #2 Fund No. 704 in the amount of $200,000.00. This liability will be repaid to the PIR Fund in 1998. Mr. Post stated that if Council agrees with Staff recommendations A tlrrough F, they should authorize Staff to book such transactions as of December 31, 1997. Councilmember Malone inquired if the previously referred transfer numbers 1 through 4 were booked in November, 1997. Mr. Post stated that was correct. Councilmember Malone inquired if the EDA realized more from the bond sale than was expected. Mr. Post stated that the issuance costs were lower than expected and there was a small accrued interest factor. . MOTION: Councilmember Hicks moved and Councilmember Malone seconded a motion to approve the operating transfers between funds, as outlined in the City Accountant's memo of May 8,1998. The motion carried unanimously (5-0). C. Midwest Asphalt Settlement Mr. Fritsinger explained that thc City has been proceeding in litigation with Midwest Asphalt Corporation over the past two years. The case was tried in November of 1997 with the judge issuing his findings in February of 1998. Mr. Fritsinger explained that the Order issued by the judge dismissed the bulk of claims made by Midwest Asphalt. The only claim that was allowed to go forward was a limited "quantum merit" claim. The judge held that the claim is limited to only those increased costs which are attributable solely to the delay in utility work; and which can be shown to have been directly covered by that delay; and from no cause attributable to the utility companies, or the nature and extent of the utilities. As part of the Order, the judge scheduled a pretrial settlement conference on April15, 1998. Since this date, StafThas been negotiating a settlement with Midwest Asphalt. The League of Minnesota Cities Insurance Trust has also been part of these negotiations, as it is willing to . contribute to such a settlement. Mr. Fritsinger stated that the plaintiff, Midwest Asphalt Corporation, has made a settlement proposal of$20,250, $11,500 paid by the City of Arden Hills and $9,000 paid by the League of ARDEN HILLS CITY COUNCIL - MAY II. 1998 6 Minnesota Cities 1nsurance Trust, to resolve the case and avoid going to trial. Staff recommends . acceptance of the settlement offer. Mayor Probst inquired if the City would be responsible for 100% of the liability ifit chose to proceed with the trail. Mr. Fritsinger stated that the City would be responsible for all costs. Mayor Probst asked Mr. Fritsinger ifit is likely that the court would grant some monetary compensation to thc Plaintiff. Mr. Fritsinger stated that he believed the court would award some funds. Councilmember Hicks inquired if the City had incurred some legal costs. Mr. Fritsinger responded that a cost of about $1,000 was incurred. Mayor Probst stated that the City has incurred some legal expenses and this case has been a distraction for Staff. Councilmember Aplikowski agreed with Mayor Probst. Councilmember Hicks stated that the settlement offer is lower than he had expected. Mayor Probst suggested that Staff investigate remedies to recover any settlement expenses. MOHON: Councilmember Hicks moved and Councilmember Keirn seconded a motion to approve the settlement proposal by the plaintiff, Midwest Asphalt Corporation, in the sum of$20,250, $11,250 paid by the City of Arden Hills and $9,000 paid by the League of Minnesota Cities Insurance Trust, subject to the recommendations of Attorney Hoff as outlined in the Staff memorandum dated, May 6, 1998. The motion carried unanimously (5-0). . ADMINISTRATOR COMMENTS Mr. Fritsinger stated new keys are available for Councilmembers for the new City Hall facility. Councilmembers were asked to enter through the front (north) door. Mayor Probst inquired if the Councilmembers' old security codes were still active. Mr. Fritsinger stated the codes are active. COUNCIL COMMENTS Councilmember Hicks asked Mr. Fritsinger about drainage easements. Mr. Fritsinger responded that tlle area in question is part of the drainage easement. Mr. Stafford has informed the individual about this and the City will be evaluating all of the drainage ditches within the City for maintenance needs. Mr. Statford has put together a letter of response to the particular individual. Councilmember Aplikowski publicly thanked Mr. Dave Winkel for 20 years of service to the . City. Councilmember Keirn acknowledged that Cindy Walsh was presented with a Community Recreation Education Award by Independent School District No. 621. . . . ARDEN HILLS CITY COUNCIL - MAY 11, 1998 7 Mayor Probst stated the 1996 State Auditors Otlice data was sent to him recently and inquired why the 1996 information was being sent in a tardy fashion. Mr. Post responded that the City received the data in May, 1998. Mayor Probst announced that Mr. Fritsinger and the City were awarded with certificates at a recent TCAAP restoration ceremony. The restoration and clean up is scheduled for completion in 2002. ADJOURN Councilmember Malone moved and Councilmember Keirn seconded a motion to adjo the meeting at 8:27 p.m. The motion carried unanimously (5-0). 1~;( j2p Brian Fritsinger City Administrator (AQ1Nb ) ./ NOTICE OF MEETINGS The next regular City Council meeting will be held Tuesday, May 26, 1998, at 7:30 p.m. at the Army Reserve Center.