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HomeMy WebLinkAboutCC 11-30-1998 MINUTES CITY OF ARDEN HILLS, MINNESOTA CITY COUNCIL MEETING . NOVEMBER 30, 1998 7:00 P,M. - ARDEN HILLS 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 7:03 p,m. Present: Mayor Dennis Probst, Councilmembers Beverly Aplikowski (arrived at 7:25 p,m.), Gregg Larson and Paul Malone, Absent: Councilmember Susan Keirn Also present were City Administrator, Brian Fritsinger; Assistant to the City Administrator, Kevin Ringwald; City Accountant, Terrance Post; Public Works Director, Dwayne Stafford; City Engineer, Greg Brown, BRW; and Recording Secretary, Lori Rolfson. ADOPT AGENDA . MOTION: Councilmember Malone moved and Councilmember Larson seconded a motion to adopt the agenda for the November 30, 1998, regular City Council meeting, The motion carried unanimously (3-0), PREVIEW OF TRUTH IN TAXATION PRESENTATION Mr. Post presented the rough draft of the Truth in Taxation agenda for the December 7, 1998 public hearing and provided a brief overview of the 14 slides contained therein, Mayor Probst stated the package for the 1998 Truth in Taxation hearing included a slide eXplaining the shift in residential versus commercial share of the overall tax capacity and asked if this will be included in the current package, Mr. Post explained it had been included as a supplemental slide to address this specific point for the previous year and it can be included this year as well. Councilmember Malone referred to slide #3 and noted, even though the total valuation was up $20 million dollars, the tax capacity was down by $500,000, Mr. Post explained the reason for this was the reduction in commercial/industrial class rates. Councilmember Malone pointed out that this was the largest down trend since the year 1994 and the result will be a shift to homeowners, Mr. Post indicated that, although this was true, the State is providing assistance to the extent that they are buying down the shift through the Education Homestead Credit. Therefore, the class rate shift has not yet been readily apparent to most homeowners, . Mr. Malone referred to slide #7 A and asked why the expenditures for Arden Hills' Parks and Recreation are substantially higher than the average expenditures of the other cities, Mr. Post ARDEN HILLS CITY COUNCIL - NOVEMBER 30, 1998 2 . explained the City of Arden Hills may have a more extensive park system and programs compared to the other cities which were used for comparison, Councilmember Malone wondered ifthe other cities charge the budget differently. He indicated he believed the park budget was approximately $160,000, ML Post explained in 1998 the park budget was $312,000. The proposed budget for 1999 is $299,350, ML Fritsinger suggested Stall' could review the calculations for slide number 7 A from the Taxpayers Association information to determine the source of the numbers and verify the information was correct. ML Post suggested one reason for the high amount of expenditure in the Parks and Recreation category could be due to the fact that all governmental fund expenditures are included, The dollar amount reflects the Recreation Fund #226, as well as park maintenance in the General Fund, Mayor Probst referred to slide #9 and requested confirmation that the revenues from licenses and permits had been dropped for 1999, ML Post explained in 1998 the City had budgeted $196,850 for licenses and permits, however, the 1998 license and permit revenue was expected to come in at approximately $314,000 due to higher commerciallindustrial building permits being issued. ML Fritsinger confirmed that, for the 1999 budget year, this revenue amount had been reduced slightly from last yeaL Mayor Probst reiterated the need for additional information eXplaining how the dollars are shifted from commercial to residential. He referred to slide #12 and noted these are not issues . which are driving the 3.2% property tax increase, He indicated the question had been raised in the past what these drivers are and suggested, if there are significant issues which are driving the tax increase, it may be worth including this information at the public hearing. ML Post stated that one of the purposes for the public hearing was to discuss the 3,2% levy increase being proposed and explain the reasons for this increase, ML Post referred to his Staff memo dated November 18, 1998 which provided specilic information on the changes being made to the budget. He explained that, at the September 14, 1998 regular City Council meeting, the Council adopted Resolution #98-60, Adopting the Preliminary 1999 Budget. In the ensuing two months several items have come into better focus for both the 1998 estimate, as well as the 1999 draft budget. Mr. Post eXplained that the purpose oftllis memorandum was to document these changes and leave an "audit trail" of the budget nunlbers to be presented at the public hearing. Mr. Post explained, in terms of the total net changes since the September 14, 1998 meeting, one of the recommendations was to increase the 1998 estimate revenue by $17,283 and increase the 1999 proposed by $5,293, The 1999 increase was being driven solely by the higher State Fire Rclief aid received since budget adoption, Mr. Post stated that the May 15 tax collections were lower than expected, The delinquency rate for collection was higher and it was estimated that this trend would continue for the October 15 . tax collections, For this reason, Property Tax revenue was being reduced by an additional $20,200, Mr. Post noted that this reduction was offset by the higher building permit fees, ------- ARDEN HILLS CITY COUNCIL - NOVEMBER 30, 1998 3 . COlmcilmember Malone asked if the delinquent taxes are up for petition or if they are simply not being paid, Mr Post indicated there are some petitions pending at this time and he did not believe it was a delinquency issue, Mr. Post stated that, regarding General Fund expenditures, there was a similar increase in expenditures for the 1998 estimate in the amount of $17,683, and for the 1999 proposal in the amount 01'$5,168. He noted, with the 1999 proposed expenditures, the increase in Administration expenditures over 1998 was related to the lease ofthe new copy machine which was executed this quarter The Fire Protection budget had been increased to correspond with the increase in the State Fire Relief payment. The most significant change for 1999 was the recommendation to reduce the transfer to the TCAAP Fund by $25,000 based upon 1998 estimated results. Mr Post summarized that, on a net basis, the proposed 1999 General Fund excess of revenues over expenditures was down from $114 to $11 which reflects the goal of a balanced budget. APPROVE MINUTES MOTION: Councilmember Aplikowski moved and Councilmember Larson seconded a motion to approve the meeting minutes of the November 9, 1998 regular City Council meeting and the November 16, 1998 City Council Worksession, The . motion carried unanimously (4-0), CONSENT CALENDAR A. Claims and Payroll B. Planning Case #98-17, John McClung, 4236 N, Snelling Avenue L Resolution #98-70, Vacating a Portion of a Drainage and Utility Easement in McClung's First Addition 2, Extension of Approval Period C. Resolution #98-71, 1999 Fee Schedule D, Lift Station #3, Award Bid E. 1999 Meeting Calendar Approval F. Newsletter Committee Appointments: Elwood Caldwell, 1451 Arden View Drive; Eugenia Canaan, 1626 Lake Johanna Boulevard; Mary Nosek, 1850 Stowe Avenue Councilmember Malone requested confirmation that the utility rates have not been changed, Mr. Post explained the Council will be presented with a proposal regarding the water and sanitary sewer rates by separate resolutions in the near future. Councilmember Malone asked ifthere have been any changes regarding the sprinklers. Mr. Fritsinger stated the Fee Schedule does include the changes to the sprinklers, The rates had been $15 for the first sprinkler head and $2.50 per head thereafter. The proposal includes the Fire . Suppression permit which would include all the sprinkler head issues and tie it back to the specific UBC charges in the building code. ARDEN HILLS CITY COUNCIL - NOVEMBER 30,1998 4 . Council member Larson referred to the discount to senior citizens for utility rates and requested background information on why this was offered. He indicated it was his understanding that the discount was available to all senior citizens and they do not have to apply for it. Mr. Post explained the senior rates apply to two different charges, The water charge for a resident not on the senior rate, using less than 10,250 gallons per month, was a minimum charge of $21,95, A customer on the senior rate was not subject to the minimum charge, With the sanitary sewer charges there was a flat 50% reduction for senior citizens. A non-senior residential customer pays $53.95 per quarter, a senior pays $26.95 per quarter. Mr. Post indicated, regarding the history behind this discount, the only other community which has a similar rate structure was Roseville, He stated he believes these two rate programs were created in a similar time frame. He added that, in reviewing the utility consumption, it appears that senior water usage compared to residential water usage was closer to two-thirds rather than the 50% in the current rate structure, Therefore, there will be a staff recommendation to review the senior sanitary sewer rate, Councilmember Larson stated the discount would make sense if the intent was to relieve certain senior citizens of some financial burden, However, there was no application requirement to determine a need for the discount. Mr. Post explained, although the senior rate is not needs tested, there is an application process and one of the conditions on the application was that the applicant must live on the property. He noted the rate program was also available to certain . citizens, MOTION: Councilmember Malone moved and Councilmember Aplikowski seconded a motion to approve the Consent Calendar and authorize execution of all necessary documents contained therein, The motion carried unanimously (4-0), PUBLIC COMMENTS Mayor Probst invited those present to come forward and address the Council on any items not already on the agenda, Mr. Steve Nixon, 1369 Forest Lane, stated he was close to completing the rebuilding of his home, The project was delayed over the weekend as the dry wall taper did not show up and he was unable to paint the kitchen and bathrooms and install the appliances, Mr. Fritsinger stated the Building Official had been working closely with Mr. Nixon to ensure the project was proceeding. The Building Official had indicated that Mr. Nixon was making progress on the improvements and corrections needing to be made. Although Mr. Nixon did not meet the November 30, 1998 deadline, he was making a good faith effort to complete the project. The home is enclosed and no longer exposed to the weather. Staff believes the best approach is to continue to work with Mr. Nixon and have the Building Official stay abreast of the situation, . Mayor Probst asked if Staff was confident that Mr. Nixon will receive a Certificate of Occupancy, Mr, Fritsinger stated the Building Official had indicated the progress was good and the Certificate of Occupancy should, at some point, be granted. ARDEN HILLS CITY COUNCIL - NOVEMBER 30, 1998 5 . Councilmember Malone asked what will happen to the Court Order allowing demolition of the property. ML Ringwald explained that once ML Nixon obtains his Certificate of Occupancy, Staff will direct the City Attomey to contact the Judge and inform him that the Court order is no longer needed, Councilmember Aplikowski stated the home looks good, however, she hoped the dumpsters will be removed soon, Ms, Diane Torres, 1512 Briarknoll Drive, stated she has lived at the southwest comer of Briarknoll Drive and Norma Avenue for 13 years, She indicated she was requesting a stop sign be installed at the southeast corner of this intersection for traffic traveling north bound on Norma Avenue. Ms, Torres indicated that the reason she was presenting this issue to the City Council was due to the fact that the next Public Safety Commission meeting was not until the third Thursday of January and action needs to be taken as soon as possible, Ms. Torres stated one neighborhood concem was the speed of the north bound traffic on Nonna A venue turning left onto Briarknoll Drive. Another issue was that the spruce trees located at 1496 Briarknoll Drive have created a blind intersection and a stop sign was necessary in order to see on-coming traffic. . Ms. Torres explained that one year ago a roller blader was hit by a car traveling over 30 miles per hour around the corneL The child was hospitalized for over two weeks, She also indicated that last spring her three children were nearly killed while chasing a ball down the driveway, Two cars, one chasing the other, were traveling north on Norma Avenue and turned left onto Briarknoll Drive going 40 miles per hour, There were nine passengers between the two vehicles. One car took out the mail box at 1511 Briarknoll Drive and car parts were left behind in the yard, Ms, Torres stated recently there had been a large amount of yard vandalism. Thirty seven property owners in the neighborhood have filed reports with the Ramsey County Sheriff Department stating that their yards have been severely damaged, This last Saturday there had been 13 reports to the Sheriff Department regarding vandalism, Councilmember Malone asked if there was a stop sign at the intersection of Norma Avenue and Colleen Avenue. Ms, Torres stated there was not, Councilmember Malone stated he concurred that the trees on the southeast property must be in violation, The situation has been made worse by the installation ofthe park trail crossing sign which further obscures visibility to the right He stated he was not convinced that a stop sign at the corner will alleviate the lawn damage, Ms, Torres stated the Ramsey County Sheriff Department had indicated this may provide an additional reason to arrest the vandals, Councilmember Malone noted the Sheriff Department would not arrest a person for not stopping . at a stop sign, however, the intersection does need to be looked at. COlUlcilmember Aplikowski asked if the speeders are generally younger people leaving the park area. Ms, Torres stated this was not necessarily the case. Councilmember Aplikowski suggested ARDEN HILLS CITY COUNCIL - NOVEMBER 30, 1998 6 . a stop sign could be installed as suggested and another be installed at the intersection of Royal Lane and Norma Avenue to prevent speeding around the comer. Ms, Torres stated there already was a stop sign at the corner of Royal Lane and Norma Avenue, Couneilmember Larson asked if the area was serving as a short cut for traffic traveling to Highway 96 from Hamline Avenue and creating the high level of speeding traffic, Ms, Torres stated most of the traffic was teenagers from other neighborhoods, Councilmember Larson asked if the vandalism was primarily lawn damage from cars driving over the lawns, Ms, Torres indicated that this was correct. Councilmember Aplikowski stated, although she does not have a problem with installing a stop sign, it may not solve the entire problem, Mr. Fritsinger noted one key to solving the vandalism issue was the Sherifrs Department needs proof of who was actually causing the damage, Some information had become available over the weekend, however, the vandal would almost have to be caught in the act. Mayor Probst requested confirmation that there will not be a Public Safety Commission meeting for the month of December. Mr. Stafford stated this was correct. Mayor Probst asked if the Council could refer this to the Commission and request that they meet this month to take action on the issue. Mr. Stafford stated this would be an option, . COlmcilmember Aplikowski asked iffrozen ground will prevent the installation ofthe proposed stop sign. Mr, Stafford indicated this will not be an issue. Mayor Probst asked what the regular December meeting date would be for the Public Safety Commission. Mr. Fritsinger stated it would be December 17, 1998, prior to the last special COlmcil meeting of the month, Mayor Probst stated that, since the City has required all other requests for stop signs to go through the standard approval process, he would be reluctant to do otherwise. He would prefer to scnd this issue to the Public Safety Commission and suggest they hold a special meeting to review the request. He also agreed that the installation of a stop sign will not necessarily prevent the vandalism, Ms, Torres noted there was also a concern about the blind spot created by the pine trees on the southwest corner. Mr. Fritsinger suggested, if there are issues of the trees being in the right-of- way, the Commission should consider the entire situation at the proposed December 17th meeting, He also suggested the Ramsey County Sheriffs Department should be in attendance to assist the Commission, Mayor Probst suggested that Staff should advertise a special meeting on December 17, 1998 to allow the Public Safety Commission to consider this issue and take action. . Mr, Fritsinger asked Ms, Torres if she has spoken to the other residents in the neighborhood regarding the need for a stop sign. Ms, Torres stated there are at least seven other neighbors in the area who have agreed with her on this issue. ARDEN HILLS CITY COUNCIL - NOVEMBER 30 1998 7 , . Mayor Probst stated that, in the past, the Public Safety Commission had bcen presented with petitions signed by neighbors for this type of request. He suggested that it may be helpful to have a petition available for the December 17th meeting, Ms. Torres agreed, UNFINISHED AND NEW BUSINESS A. Lake Johanna Volunteer Fire Deoartment 1. Resolution #98-68, Authorizing Execution of a Fire Protection Service Contract 2. Resolution #98-69, Authorizing the Joint Powers Agreement Establishing the Arden Hills, North Oaks and Shoreview Fire Protection Board ML Fritsinger explained that the City's ten year agreement for fire protection services with the Lake Johanna Volunteer Fire Department (LJVFD) expires at the end of 1998, In September of 1997, the Arden Hills City Council held ajoint meeting with the North Oaks and Shoreview City Councils, and representatives from the LJVFD, to discuss the renewal of this agreement, At that meeting the City Councils indicated there was a strong desire to strengthen communication between the LJVFD and the cities, During this time in 1997, Arden Hills created a Task Force which reviewed the overall operations of the Fire Department. Over the last year, staff from each of the cities, along with . City Attorney Jerry Filla, have met on several occasions with representatives of the LJVFD to develop a new Fire Protection Agreement. There was also another joint meeting held with all parties on August 19, 1998. A number of the issues identified by the Task Force have been incorporated into the agreements, The negotiations resulted in the development of both a Joint Powers Services Agreement between the three communities, as well as a Fire Protection Board to enhance communication between the LJVFD and the cities. The Board would consist of a Councilmember and the Chief Administrative Officer from each of the cities, the Fire Chief and one other member ofthe Fire Department. The Fire Protection Board would serve in an advisory capacity to the City Councils and make recommendations on matters such as the annual budget and capital improvements program, the purchasing of new fire equipment, facility improvements and other issues which impact fire protection services, ML Fritsinger indicated that one of the key provisions ofthe Fire Protection Services Agreement was the term, The initial term of the agreement was five years, with three automatic five-year extensions, This will run the contract through the year 2018, The cities and the Fire Department have the ability, through the contract, to consider termination of the agreement by adoption of a resolution and a one-year notice, Although the contract was for a total of 20 years, the cities have the opportunity each year to take action which would cause reconsideration of the contract. ML Fritsinger stated that the revision of the contract took out much of the language which dealt with the requirements for materials each of the parties were to provide the others, This included some reports which were not functional for use by the cities or the Fire Department. ~ ML Fritsinger stated that the key issue in Section 4, City Responsibilities, was to assist the Fire Department with recruitment of volunteers. The Fire Department had seen some decline in volunteers, however, they recently have been successful with their advertising, ML Fritsinger ARDEN HILLS CITY COUNCIL - NOVEMBER 30, 1998 8 . noted the section dealing with the Fire Department Responsibilities was where some of the reporting requirements have been eliminated. Mr. Fritsinger indicated that one issue which had been discussed during the August meeting was the fact that the ISO rating had been eliminated, This requirement had been placed back into the final agreement to ensure that the cities work with the Fire Department to maintain their current ISO rating. Mr. Fritsinger referred to Section 12, Dissolution of the Fire Department, and stated there had been a concern of what would happen to the Fire Department's assets in the event of dissolution, whether they would be moved to a successor organization or returned to the communities. The language included in this section of the agreement addresses the concerns by both the Fire Department and the cities, In the case of dissolution, the Fire Department's assets would be liquidated and the proceeds would be used to insure that the Fire Department's Relief Association obligations are fully ti.ll1ded, Any balance would be refunded to the cities, Mr. Fritsinger indicated all the issues discussed at the August 19, 1998 joint meeting have been addressed in the agreement. He noted a concern had been raised at that meeting by Councilmember Larson regarding the term of the agreement. Attorney Filla had developed language which was included in the Staff report which addresses the formalizing ofthe extension of the agreement by the City Councils to ensure the cities are taking action and not simply . allowing the agreement to roll over each year. The cities of North Oaks and Shoreview have approved the contract as presented, however, Attorney Filla had discussed this new language with the two cities and it could be incorporated into their agreements as well. Councilmember Malone pointed out that the Fire Protection Service Contract had been updated from the City ofShorview's copy and in some areas the reference to the City of Arden Hills was incorrect. He noted the tirst section of the document states the City of Arden Hills will be referred to as the "City" and later in the document it states "the City and the Cities of Arden Hills and North Oaks" and suggested this be corrected, Councilmember Malone noted the agreement does not include a default clause, There was nothing to protect the city if the Fire Department were to stop responding to fires, According to the contract the City must give a one-year notice and continue paying for this year. Additionally, the Fire Department needs some protection in the event the City were to cease payments. Mr. Fritsinger stated Section 16, the Waver portion, addresses this issue but not to this full extent, He indicated that the previous agreement had included a section dealing with termination due to deficiency status as well as arbitration. During negotiations it was determined that arbitration was not something the parties wanted to deal with, The fact that the arbitration issue was tied into the default issue may be the reason the language was removed, Mr. Fritsinger offered to discuss this issue with Attorney Filla. Councilmember Aplikowski asked if this was the reason the Termination Because of Deficiency . Status paragraph on page nine of the old agreement was removed. Mr. Fritsinger stated this assumption would be correct as the default issue had been tied into arbitration, ---- ..--------------------- - ------ ARDEN HILLS CITY COUNCIL - NOVEMBER 30, 1998 9 . Councilmember Larson stated that the previous agreement had provided for any annual surpluses being returned to the cities and asked why this language does not appear in the new agreement, Mr. Fritsinger stated this question came up during the joint meeting in August and he did not recall exactly why this language was deleted. One of the LJVFD representatives explained the discussion during the August meeting had been related to the return of excess funds and coverage for when the Fire Department was forced to go over budget. It was determined that this issue would be handled by the Fire Board, Mr. Fritsinger also pointed out that over the years any surpluses have been returned to the cities, Councilmember Larson stated his concern for having the Fire Board handle this issue was that the Fire Board was an advisory body and he was not sure that the Board would be the appropriate body to handle this type of requirement, Councilmember Larson stated another issue he had was with the reason for dropping the dispute resolution provision, He indicated, upon reviewing the Joint Powers Agreement, it states the Fire Board can make recommendations regarding the rights and responsibilities of the Department and the individual cities, however, it was not a body which can resolve disputes that may remain between the four parties. Mr. Fritsinger indicated the idea behind creating a Joint Powers Agreement with a Fire Board was for this body to serve in the roll of bringing agreement between the parties rather than going to an outside source. During the last term of the agreement the arbitration process was not used. Therefore, during negotiations, it was decided that there . was not enough interest in trying to utilize this approach, It was determined that the Fire Board would deal with these issues, Councilmember Larson indicated, if a dispute between the three cities and the Fire Department arises that the Fire Board can not resolve, the cities hold the majority vote on the Board and the results may not be satisfactory from the Fire Department's point of view. Councilmember Larson commented that, in reviewing the requirements of the various parties, he was unable to determine what Arden Hills' requirements are with regard to the budget. He asked, does the City simply receive the budget and approve it, or will the Council have the opportunity to review the budget and make necessary changes, Mr. Fritsinger stated the intent was to deal with the budget in the same way as with the agreement with the Ramsey County's Sheriff Department. The Fire Board will review the budget issues and will hold the major discussions on policy and prevention action issues, The Board will attempt to resolve any issues prior to submission to the various Councils, The Councils have the right to review issues which affect the budget and, if appropriate, take action which may not necessarily be in agreement with the Fire Board. Councilmember Larson stated his last question was regarding dissolution, He indicated that the Fire Protection Agreement assumes this could happen in two ways, by Fire Department initiated action and by city initiated action, In the case of city initiated action, it assumes all three cities act together to dissolve the Fire Department. There was a provision that the City of Arden Hills . review the agreement every five years and make a decision whether or not to continue the agreement for another five years, There was also a provision which allows the City to terminate the agreement with a one-year notice. If the cities act unilaterally and there was an issue the City of Arden Hills was unsatisfied with and the two other cities are not, it appears that there was no ARDEN HILLS CITY COUNCIL - NOVEMBER 30, 1998 10 . way the City of Arden Hills can pull out of the arrangement and receive any assets back which may be due to the City, Mr. Fritsinger pointed out there was only one asset, a half-share of the ladder truck for which there was currently an agreement with the City of Shoreview, The agreement explains how the truck was to be paid for and, if one of the cities were to back out of the agreement, the truck would be offered to the other party to purchase, Councilmember Larson stated that in previous meetings he had voiced his concern about the term of the agreement Part of the reason he was asking these questions is, if the City was embarking on a 20-year agreement, it should be clear what the City was agreeing to, Councilmember Larson stated he was still concerned about the term of the agreement, The previous term had been 10 years and, during the joint meetings when he brought up this concern, the answer from Shoreview was that they have no interest in taking an interim look at the agreement He expressed his appreciation to the City Attorney and Staff for adding some language which requires the City Council to take some affirmative action to approve participation in the agreement for another five years, Councilmember Larson indicated he still feels that 20 years was too long of a term, He stated he supports the idea of a Fire Board, however, the length of the agreement was not good public policy. For these reasons, he will not support the agreement as presented, Council member Aplikowski asked how long the City has had a Fire Protection Agreement with . the Fire Department The LJVFD representative stated that the community had been served since the founding ofthe Fire Department in 1943. Councilmember Aplikowski asked if North Oaks has taken the same position as Shoreview that they are not interested in a regular review of the agreement Mr, Fritsinger stated, during the August meeting, both cities had indicated they approve of the agreement as presented and they do not have any concerns, The LJVFD representative stated that, with regard to the review process, the Fire Board was the on-going review, The Board consists of representatives from the cities and the Fire Department and this was an on-going communication process between the City Councils, the City's representatives and the Fire Department. Over the last ten years the there have not been as many meetings as there should have been and the Fire Department was attempting to make this process better. With regard to the long-term contract, the Fire Department was made up of people who are volunteering to fight fires, The benefit offered was the 20-year pension which was put in place in order to recruit more volunteers. The Fire Department had recently been able to recruit ten new people, five of which are day people, This number of day-time volunteers was virtually unheard of and was due to the 20-year pension, There would be a concern that, if the contract were only five years long and were to terminate in five years, the volunteers would be left with no pensIOn. . Mayor Probst asked if the action for these resolutions would require a simple majority vote, Mr. Fritsinger stated this was correct ARDEN HILLS CITY COUNCIL - NOVEMBER 30, 1998 11 . Councilmember Malone stated he would support the contract because it was better than the current agreement. He noted that there was a need for longevity within the Fire Department and, although the contract could run for 20 years, it was essentially a one-year contract. Mayor Probst indicated he too would be in support of the agreement. Through the negotiations, Arden Hills had raised a number of issues which have been addressed, He expressed his agreement with Councilmember Larson regarding the length ofthe term, however, it truly was a one-year agreement. There are options available to the City if it was determine necessary to terminate the agreement. Mayor Probst stated the proposal was a great step forward compared to the previous agreement. Council member Aplikowski expressed her concern that, as three different Councils change personalities, will the agreement stand the test of time, Councilmember Larson stated, regarding the comments made by the Fire Department representative, a pension benefit was important in recruiting volunteers, However, those who join the Department ten years from now will not have any greater assurance of a pension, Mayor Probst referred to the question raised earlier about the potential addition of a default clause. He asked Staff for assistance in what action should be taken with regard to this issue, Mr. Fritsinger suggested there would be two items Stail' would look for in the action taken by the . Council. First was direction on the term language and whether or not this should be included, On the issue of default, he would suggest the Council direct Stafl'to work with the City Attorney and the two other communities to determine the appropriateness of the default language, MOTION: Councilmember Malone moved and Councilmember Aplikowski seconded a motion to adopt Resolution #98-69, Authorizing the Joint Powers Agreement Establishing the Arden Hills, North Oaks and Shoreview Fire Protection Board, Mayor Probst pointed out that none of the discussion thus far had been related to the Joint Powers Agreement. The motion carried unanimously (4-0). MOTION: Councilmember Malone moved and Councilmember Aplikowski seconded a motion to adopt Resolution #98-68, Authorizing Execution of the Fire Protection Service Contract conditioned on: 1. The addition of language which would allow either side to declare a default and, due to extenuating circumstances, terminate the contract. 2, The addition of language requiring the City Council to take action in order to extend the term of the contract. . Councilmember Malone pointed out the idea of default would be due only to a major default. From the Fire Department's point of view it would be if the City were to cease payment, from the City's point of view it would be if the Fire Department stopped providing fire protection, ARDEN HILLS CITY COUNCIL - NOVEMBER 30, 1998 12 . The LJVFD representative pointed out that, in researching the dissolution clause, it was determined that if the Fire Department was not fulfilling its charter as a non-profit organization, the Department would have to be dissolved by the Court. Councilmember Malone reiterated that the Fire Department would not be protected if the City stopped payment. Mayor Probst indicated the Arden Hills Fire Protection Contract does not have to be identical to the other city's as there are three different cities involved. Mr. Fritsinger concurred and noted the reserved Section 13 of the agreement allows the individual cities to include separate language if the other cities do not feel it was appropriate for their contracts. Mayor Probst reiterated the need for a review of the document to confirm the references to the "City" and the "Cities of Arden Hills and North Oaks" are corrected. The motion carried (3-1, Councilmember Larson opposed). The LJVFD representative expressed his appreciation to Mr. Fritsinger for his involvement in the negotiations. B. Resolution #98-72, Rescheduling the Public Hearing in the matter of the 1999 Street Improvement Project, West Round Lake Road . Mr. Fritsinger explained, at the November 9,1998 City Council meeting, the Council adopted Resolution #98-63, Receiving the Preliminary Report in the matter of the 1999 Street Improvement Project, West Round Lake Road (Phase II), and scheduled a public hearing on December 14, 1998 for the proposed improvement. Prior to adoption of this resolution, much discussion occurred concerning the estimated costs and funding sources of Alternative "B" (two- lane divided with raised median and turn lanes) and "D" (two-lane undivided with center turn lane). Specifically, certain members of the Council indicated a desire to see a side-by-side comparison of Alternatives "B" and "D". In addition, Staffwas asked to provide an update on the use of tax increment financing (TIF) based proceeds/future TIF revenue streams. Mr. Fritsinger stated the initial resolution was approved with a 3-2 vote. As the project moves forward, there was a requirement that any project being considered for assessment be approved by the Council with a four-fifths vote. The information to be presented should assist the City Council in determining how the project should proceed, and allow for a more informative public hearing. Mr. Fritsinger indicated that City Engineer, Mr. Brown, had provided information which compares Alternatives "B" and "D" and includes additional information related to Alternative "B" and the resulting reduction of cost. Mr. Fritsinger indicated that, following Mr. Brown's presentation, Mr. Post will provide information regarding the revenue sources for the project. Councilmember Malone suggested referring to Alternatives "B" as the median alternative, and . "D" as the non-median alternative the simplify the discussions. Mr. Brown indicated at the November 9, 1998 City Council meeting the question was brought up regarding the cost of Alternative B. He had stated at that time that the cost had been reduced, ARDEN HILLS CITY COUNCIL - NOVEMBER 30, 1998 13 . however, he did not have the new estimate available. The memo he had provided for this evening's meeting reviews these cost reductions as well as a comparison of the median and non- median alternatives. Mr. Brown stated the totals at this time for construction and easement acquisition for the median alternative was $1.78 million dollars, the non-median alternative was $1.54 million dollars, for a difference of approximately $238,000. The median alternative has a 15% wider footprint than the non-median alternative. The bitunlinous area of the median alternative was approximately 1,200 square meters less than the non-median alternative, however, the total prepared base area of the median alternative was approximately 600 square meters greater than the non-median alternative due to the larger amount of curb and gutter included in the median alternative. The larger footprint of the median alternative was reflected in additional common excavation costs and retaining wall costs totaling $48,150. The estimated storm sewer costs for the median alternative was greater than those for the non- median. The difference was a result of a longer pipe length for each series of catch-basins and approximately 14 extra catch-basins for median drainage. The median alternative would require the acquisition of a six-foot wide strip along the existing private properties to provide for a minimum of six feet of right-of-way adjacent to the eastern curb line. With the non-median alternative the six-foot right-of-way would be available now. . The median alternative would also require additional sodding of the medians at a minimum, the installation of irrigation sleeves for the median areas, and additional signage and mobilization costs. Mr. Brown indicated he also reviewed the cost per foot comparison. Recent residential street reconstruction projects within the City have cost approximately $200 per foot ofroadway. The proposed improvements for West Round Lake Road Phase II are estimated to cost approximately $575 for the median alternative or $550 for the non-median alternative. The primary reasons for this are: 1. The proposed pavement section includes 70% more bituminous surface mix, 50% more aggregate base and 50% more sand sub-base than the typical residential street. The heavier pavement section was necessary to provide for adequate carrying capacity for the truck traffic expected on the roadway. 2. Traffic control improvements include significant allowances for traffic control which includes items such as a concrete .T-barrier, temporary paving, temporary signage and temporary striping which normally are unnecessary for low volume residential streets. Mr. Brown indicated the estimate for this cost may be conservative and until the staging was worked out it will not be known ifthe J-barrier will be needed. 3. The roadway was much wider than a standard residential street. The non-median . alternative includes the construction of a 44-foot roadway with a 6-foot wide sidewalk. Typical residential streets are 32-feet wide and do not include sidewalks. ARDEN HILLS CITY COUNCIL - NOVEMBER 30, 1998 14 . 4. With either alternative there was a need to construct a retaining wall. With the median alternative the retaining wall would be slightly larger since the road will extend further into the bank. 5. The project includes estimated costs for modifications to the three TCAAP monitoring wellheads, permanent signage, striping and pavement markings which was more extensive than typical residential streets, clearing and grubbing and removal of existing culverts. 6. The project includes storm sewer catch-basins for the roadway as well as catch-basins for the commercial driveways. Overall pipe lengths are longer than typical residential streets and pipe diameters are greater to handle the larger flows from roadway and business runoff. Mr. Brown indicated that the last item he reviewed was enhancements. Primary cost estimates for potential enhancements include street lighting, landscape trees and shrubs, and an irrigation system. The irrigation system was assumed to provide irrigation to median areas only and therefor would be necessary if the median alternative was chosen. It was likely that the median alternative would require more landscaping due to the median areas. Councilmember Larson asked ifthe width ofthe six-foot sidewalk was standard. Mr. Brown . explained that this width was common. Trails are usually 10-feet wide and there are cases when sidewalks are wider but not narrower. Mayor Probst indicated he still had an issue with some of the numbers. He asked ifthe additional catch-basins would be in the median. Mr. Brown explained the catch-basins would be where the low end of the median occurs and pavement begins. The catch-basin was to catch any run-off before it gets out to the intersection. When a road was crowned there generally will not be water in the middle of the roadway, however, with the median alternative, water build up does occur. If a catch-basin was not used, snow can build up during the winter months and during the spring melt it can freeze and become hazardous. Mayor Probst asked Mr. Brown ifhe was proposing the overall cross sections be crowned, not the two roadways. Mr. Brown explained it could be designed witll either the two roadways crowned or the overall crown. Either way there will be a need for catch-basins in the middle of the roadway. Mr. Post presented a revised funding source analysis. He referred to Attachment B of his Staff memo dated November 25, 1998 and explained the attachment reviews the assessment assumptions and includes relevant definitions and excerpts from the City's Assessment Policy. Mr. Post indicated the item he wished to point out was number four, Commercial/Industrial Equivalent Assessment Rate, which reads "The commercial/industrial equivalent assessment rate shall be based upon 70% of the cost of street reconstruction for a typical commercial street . section." Mr. Post indicated this was in contrast to item five, The Municipal State-Aid Project - Reconstruction, which states "CommerciallIndustrial property abutting a Municipal State-Aid reconstruction project will be assessed all costs associated with reconstruction ofthe existing street to the City standards for commercial/industrial uses." ---- ARDEN HILLS CITY COUNCIL - NOVEMBER 30, 1998 15 . Mr. Post stated, since West Round Lake Road was designated as a Municipal State-Aid street, he has assumed the commercial/industrial rate to be used should reflect the 100% factor rather than the 70% for a standard commercial/industrial roadway. This standard was most closely reflected by Feasibility Study Alternative A with a 36-foot wide undivided roadway as modified by the a addition of a six-foot concrete sidewalk. Estimated roadway costs for this alternative were $823,375. In addition, storm drainage and sidewalk costs were estimated at $180,160 and $51,975, respectively. Total assessable costs then total $1,055,510. The amount of estimated assessments was then calculated as follows: 1. Total assessable costs were divided by 50% to reflect the non-assessable west side of the road. ($1,055,510/2 = $527,755) 2. The total length of the improvement was approximately 2,600 feet. On a front footage basis this equates to $202.98. ($527,755/2,600) 3. The southerly portion of the improvement from Gateway Court to Gateway Boulevard, or about 700 feet, is not assessable due to a pre-existing Development Agreement which includes the Welsh Phase II building. . 4. Total assessments were then calculated at $385,662 ($202.98 * (2,600 - 700)). Assuming the five assessable property owners had comparable front footage, the estimated average per property assessment would be approximately $77,132. These assessment may be increased by adding 36.5% of the costs of street lighting or landscaping appurtenances which may be included as part of the improvement scope (1,900'/2,600' = 73.1 % * appurtenance cost/2 = 36.5%). Mayor Probst referred to item number three and stated he believed there was language which did allow the City to assess this area according to the valuation under certain conditions. Mr. Post noted at that time the buildings had not yet been built. Mr. Fritsinger stated that in theory they are meeting the assessment agreement. Another consideration to this is that property taxes for the property are within the TIF District and will be captured to pay for the West Round Lake Road intersection. Mayor Probst asked for the status of Ramsey County's valuation of the property. Mr. Post explained the only parcel which has been valued thus far was Phase I, the MSL building. The specific issue was that the building assessment was fine, however, Staff felt the land value was low given recent market activity. Mr. Post indicated he had received assurances that the value will be increased to approximately $2 per foot. . Mr. Post referred to page two of this Staff memo and explained the various funding sources. There was a funding shortfall, prior to any enhancement costs, of $283,386 for the median alternative and $97,271 for the non-median alternative. The enhancements push up the shortfall and there was a possibility that this short fall could be funded by the Non-Assessable Road ARDEN HILLS CITY COUNCIL - NOVEMBER 30, 1998 16 . Improvements Fund Number 409. Based on projected expenditures, it was unlikely that there will be any remaining 1998 TIF Bond proceeds available to fund the revised median alternative project deficit. As of October 31, 1998, Fund Number 409 had a cash balance of approximately $1,215,000. The Fund was established to fund future City cost participation on County projects such as Highway 96 and County Road I, or "one-side" non-assessable streets such as North Hamlinc Avenue and North Snelling Avenue. Mr. Post indicated, although the City Engineer had revised the median alternative costs downward by some $216,970, the total base costs of this alternative, before enhancements, remain $237,995 higher than the non-median alternative. The issue of benefit for this additional level of cost is still present when comparing the alternatives. Mr. Post noted there is a large swing item in terms of the use of bond proceeds which has yet to be completed - acquisition of the Indykiewicz property and the resulting agreement with Ramsey County. Therefore, he was reluctant to project any remaining bond proceeds until this transaction is finalized. Mayor Probst asked if Mr. Post was implying that, if tllis issue was resolved favorably, additional funds would be available. Mr. Post indicated that this would only put the bonding in a breakeven position. If the City ends up with the whole taking and Ramsey County's participation level was not as expected, the bonding could be in a negative situation. Mr. Fritsinger explained that with the full parcel acquisition, the City will have an amount of dirt . to sell which will create proceeds. The equipment on the property will potentially have to be purchased which would then be sold and there would be the potcntial of revenue from this. Additionally, if there was a full take on the property, there would be a piece of property which may be marketable with some resale value. Mr. Fritsinger stated these would be three potential revenue sources. Mayor Probst asked if the total revenues of the parcel had been accounted for and added back in to determine the net parcel cost. Mr. Post indicated this was correct. When considering the potential commitment for the I35W bridge participation of$350,000 and the acquisition of the property at the Highway 96 intersection, in the best situation, the City would utilize all of the bond proceeds. Mayor Probst asked, having spent all of the bond proceeds, does the City have a parcel of/and with a re-sale value. Mr. Post indicated the City would not if there was a partial taking of the land. Mayor Probst confirmed that the scenario in which all the funds are expended was based on a full taking of the parcel. Mr. Post indicated this was correct. Mayor Probst indicated then, that there would be a parcel of land left over and asked if this would remain as a community asset which has not been liquidated. Mr. Fritsinger pointed there was some additional cost for the acquisition of the land. Therefore, although the land was a potential revenue stream, there are increased costs to acquire the piece of property. Mr. Post pointed out the net cost to the City, even with selling the parcel, would be higher with a . full taking, as the cost for the full taking was higher than the partial taking. Mr. Fritsinger indicated, with the partial taking, the percentage of cost the County would be incurring was greater than would be incurred by the City. In a full taking, the percentages shift and the City would be responsible for a higher percentage of the cost. ARDEN HILLS CITY COUNCIL - NOVEMBER 30, 1998 17 . Mayor Probst indicated he was still struggling with the idea of whether or not there was a piece of/and at the intersection ofI35W and Highway 96 which the City will still own after expending all of the bond proceeds. Mr. Post indicated tllis would only occur in a full taking. He indicated it was not known what the final cost of the taking. Mayor Probst asked if the cost of the acquisition was expected to be known by the end of the year. Mr. Post indicated it should be. Mayor Probst indicated the action requested by Staff was to reschedule the public hearing. He noted that the City did choose to invest money to upgrade the last three buildings on the street in order to set the stage for higher level development on the corner. He continues to be concerned that more money was being spent to facilitate the higher level of development on the corner. Mr. Fritsinger suggested one option may be to delay the project to the future in order to see how some of the issues work out. This would mean an indefinite postponement. The City could save up the proceeds from 1999 and wait until the year 2000 tor Phase II. He pointed out, while reconstructing the roadway was necessary for further development in the area, the most critical portion of the project was the intersection. Mayor Probst asked, if the road were built only to the first assessable property, how would this affect the assessments. Mr. Post indicated this would not necessarily affect the assessment program. . Councilmember Larson indicated his concern for delaying the project is, ifthe road was instrumental in gaining the type of development the City wants for the corner, delaying the road project will also delay these development opportunities. He stated that the development of the corner should be a priority. Mr. Fritsinger stated, according to the brokers handling the vacant buildings, the intersection has been very detrimental to the marketability of the property. Additionally, the property owners along the road have expressed their desire to have the road upgraded as soon as possible. Councilmember Malone agreed that the intersection must be built now. He suggested an option to simply recycle the remaining roadway. This could be done by widening the road and re- surfacing. The current road has held up remarkably well considering the heavy traffic and it could be built up to be made stronger. Councilmember Malone suggested another alternative could be to include a less extensive design element in the middle of the roadway which visually separates the roads but was not a median. Mayor Probst asked how far the new roadway would extend to. Mr. Brown explained it will extend to the railroad tracks. Mayor Probst suggested there may be a way to do a temporary rebuilding of the road and, if the City was able to promote a higher level project at the corner, this could produce additional revenue for further road reconstruction. Mr. Fritsinger indicated he would agree with these suggestions, however, the project was competing with other projects within the community which need to be accomplished. . Mr. Brown suggested one option to reducing the cost may be to narrow the median and end it at the turn lane. ARDEN HILLS CITY COUNCIL - NOVEMBER 30 1998 18 , . Mayor Probst referred to Staff" s recommendation to reschedule the public hearing to January 4, 1999 and expressed his concern for the timeliness of this date. He noted this would be the first Monday after the New Year's holiday and asked if the date was critical or would the Council be allowed more time to pursue the options further. Mr. Fritsinger stated the date was not critical from a Staff point of view, the only issue was the timeliness of going out for bids. Councilmember Aplikowski suggested it may better to wait until the end of January for the public hearing. Councilmember Malone asked for the status of the intersection project. Mr. Brown stated Staff has advertised for bids and the bid opening was scheduled for December 17, 1998. Councilmember Malone suggested there may be an organization the City could turn to for help in designing a roadway which was aesthetically pleasing without the high cost. Mayor Probst indicated the City has Staff available who should be able to do this. Councilmember Larson stated he does not have a problem with delaying the project if there was some way to bring the costs down. He indicated he would not support the project with the current cost differentials. Mayor Probst stated, after the amount of money and time spent to get the project where it was . today, he would not want to lose the opportunity of gaining the type of development the City wants for the corner. He suggested it may be worth looking into the cost ditference to shorten the median. Councilmember Aplikowski expressed her belief that quality building can be obtained without the addition of a median in the roadway. She indicated she still opposes the median idea but will remain open minded for other suggestions. She noted the addition oflandscaping and lighting could provide the necessary visual enhancements. Mayor Probst indicated he would ask Staff to look into other design options which may be available to provide a quality appearance down the roadway. He asked if the volunteer trees currently in place would remain as the road was improved. Mr. Fritsinger stated that, as a part of the Welsh Development, it was requested that MNDOT remove these trees. CounciJmember Malone agreed that it may worth looking into other options and he expressed his belief that the assessments are optimistic. Mayor Probst asked, with action needing to be taken, should the Council defer or reschedule the public hearing. Mr. Fritsinger suggested the resolution could be deferred to allow time to review other options or the public hearing could be scheduled for the end of January. MOTION: Councilmember Malone moved and Councilmember Larson seconded a motion to . adopt Resolution #98-72 canceling the December 14, 1998 public hearing in the matter of the 1999 Street Improvement Proj ect, West Round Lake Road. The motion carried unanimously (4-0). ARDEN HILLS CITY COUNCIL - NOVEMBER 30, 1998 19 . MOTION: Councilmember Malone moved and Councilmember Aplikowski seconded a motion to direct Staff to develop other alternatives which visually enhance West Round Lake Road while remaining within the budget. The motion carried unanimously (4-0). ADMINISTRATOR COMMENTS Mr. Fritsinger stated the Truth in Taxation hearing was scheduled for December 7, 1998 and he had planned to schedule a regular meeting upon completion of the hearing. Considering the discussion of a stop sign installation on Briarknoll Drive and the fact that this issue will most likely be discussed at the December 21, 1998 meeting, he would suggest holding a special meeting on December 21, 1998 rather than a Worksession. Councilmember Larson indicated that Staff may be jumping the gun by scheduling a special meeting to discuss the stop sign issue. If the Safety Commission determines the stop sign was warranted a special Council meeting should not be necessary. If the Truth in Taxation hearing was completed on December 7th, this would make the December 21st meeting unnecessary. Mr. Fritsinger pointed out December 21st was already planned for a Worksession in addition to the potential budget adoption hearing. Mayor Probst confirmed that the December 7th meeting was strictly the Truth in Taxation . hearing, the December 14th meeting would be a regular Council meeting, and the December 21st meeting would be a Worksession and a special meeting based on the he need to have a budget adoption hearing. Mr. Fritsinger indicated this was correct and noted the Worksession could be canceled on the 21 st. Mayor Probst asked what the agenda for the Worksession would include. Mr. Fritsinger indicated it would be the last opportunity of the year to discuss the Town Hall meeting. There would also be discussion regarding rubbish hauling and the licensing which could be added to the December 14, 1998 regular Council meeting rather than the Worksession. Mayor Probst indicated this could be decided at the December 14th meeting if time allows. Mr. Fritsinger stated that there had been a complaint by a citizen regarding smoke from wood burning stoves. He indicated the Building Official reviewed the situation to see if there was anything that can be done. The Building Official indicated there was not a lot tllat can be done. Thc current chimney stack on the house using the fireplace was on the peak and nothing will be gaincd by adding to the stack. The Building Official indicated the air intake on the affected home was already approximately 150 feet away from the other home. COUNCIL COMMENTS Councilmember Larson asked Staff for a status of the negotiations for the lease of the Arsenal property. Mr. Fritsinger indicated there have not been a lot of specific discussions regarding the . lease. The parties involved are waiting to hear from General LeBlanc regarding the land transfer issue. Mayor Probst indicated he had attempted to contact the General and has yet been unsuccessful. He stated he received a message from the General today indicating the General will be in his oflice tomorrow and he will try to contact him then. ---------- ARDEN HILLS CITY COUNCIL - NOVEMBER 30, 1998 20 . Councilmember Aplikowski indicated that she wished she had an answer for the smoke problem. She had suggested the affected home owner move the fresh air intake, however, this will not help since the homeowner has a health problem. She also pointed out that, according to the State, 50% of all pollution comes from wood burning stoves. Mayor Probst stated the North Suburban Cable Commission information included in the non- agenda package looks fairly positive and asked if there was any action which needs to be taken. Mr. Fritsinger indicated he had met with other City managers last week to discuss how this affects the City. The key was the creation of another committee and there was alot of discussion of what the City can do with regard to participation. Mr. Fritsinger stated, at this point there was no specific action by the City being requested. Mayor Probst suggested, at the December 21, 1998 meeting he would be interested in reviewing the Councils assignments for the committee's commissions and liaisons. He asked ifthe Councilmembers have preferences for these assignments, they work with Staff over the next couple of weeks so there may be a preview at the December 21st meeting. ADJOURN MOTION: Councilmember Malone moved and Councilmember Aplikowski seconded a motion to adjourn the meeting at 10:06 p.m. The motion carried unanimously (4- . 0). ~~ B;ian Fritsinger City Administrator NOTICE OF MEETINGS The next regular City Council meeting will be held Monday, December 14, 1998 at 7:30 p.m. at the Arden Hills Council Chambers. . -----. ----