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HomeMy WebLinkAboutCC 12-14-1998 MINUTES CITY OF ARDEN HILLS, MINNESOTA CITY COUNCIL MEETING DECEMBER 14, 1998 . 7:30 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 7:30 p.m. Present: Mayor Dennis Probst, Councilmembers Beverly Aplikowski, Susan Keim, Gregg Larson and Paul Malone, Absent: None. Also present were City Administrator, Brian Fritsinger; Assistant to the City Administrator, Kevin Ringwald; City Accountant, Terrance Post; Associate Planner, Nancy Randall; City Engineer, Greg Brown, BRW; and Recording Secretary, Carla Wirth. ADOPT AGENDA MOTION: Councilmember Aplikowski moved and Councilmember Keim seconded a . motion to adopt the agenda for the December 14, 1998, regular City Council meeting. The motion carried unanimously (5-0), APPROVE MINUTES A. November 30, 1998 Regular Meeting B. December 7, 1998 Truth in Taxation Public Hearing C. December 7, 1998 Council Worksession Mr. Fritsinger requested the following correction to the December 7,1998 Council Worksession minutes: Page 1, second paragraph under Rubbish Hauling, strike "Safety Commission" and insert "Works Director" and the second line strike "and the Public Safety Commission." Page 4, sixth paragraph, last sentence, strike "identify" and insert "identity." Councilmember Larson requested the following correction to the November 30, 1998 Regular minutes: Page 4, third paragraph, second line, change from "burden" to "financial burden." . --.------ ARDEN HILLS CITY COUNCIL - DECEMBER 14, 1998 2 MOTION: Councilmember Aplikowski moved and Councilmember Keirn seconded a motion . to approve the meeting minutes of the November 30, 1998 Regular City Council meeting, the December 7,1998 Truth in Taxation Public Hearing, and the December 7, 1998 Council W orksession meeting, as corrected. The motion carried unanimously (5-0). CONSENT CALENDAR A. Claims and Payroll B. 1999 Liquor License Renewals C. Animal Control Contract Renewal D, Electrical Inspector Contract E. LMCIT Municipal Excess Liability Coverage F. Designation of 1999 Official Newspaper MOTION: Councilmember Keirn 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 (5-0). PUBLIC COMMENTS Mayor Probst invited those present to come forward and address the Council on any items not . already on the agenda. There were no public comments. UNFINISHED AND NEW BUSINESS a. Planning Cases 1. Planning Case #98-28, Mark & Roberta Thompson, 3413 Snelling Avenue North, Variance (Side Yard Setback) Ms, Randall explained that the applicant was requesting approval of a side yard setback variance (four feet, six inches proposed, when 10 feet is required) for a porch on a single family lot zoned R-I. The applicant is adding onto the existing home in several areas. The proposed porch on the south side of the home does not meet the required 10 foot side yard setback. The existing porch which is six feet by eight feet, six-inches (51 square feet) is approximately seven and one-half feet from the property line and does not meet the required setbacks, The applicant wished to replace the existing porch with a larger porch, The applicant was proposing a 10 foot by 12 foot (120 square feet) porch placing the new pilings beyond the existing structure and cantilevering a portion to the edge of the two-tier retaining wall. The home is a split entry style and the door on the south side of the home serves as a front door for the home, Ms. Randall used an overhead to point out the location of the existing and proposed porch. She stated there is an encroachment provision to allow for certain types of structures to be closer than . the ten foot requirement with up to a three foot encroachment but no less than five feet. In this case, it would be less than three feet but they agreed to a reduction of six inches in width bringing the proposal to 9 feet 6 inches by 12 feet with a five foot variance. The applicant has submitted new plans reflecting a five foot setback. ARDEN HILLS CITY COUNCIL - DECEMBER 14, 1998 3 The Planning Commission recommends approval with a five foot setback with the porch left . open and never closed, which the applicant has agreed to, Ms, Randall noted that the applicant does not want to remove all of the existing structure since some is used to support the house so they want to put pilings outside of that. Because of cosmetics, they want to cover up what is underneath. Ms. Roberta Thompson, 3413 Snelling Avenue N., stated she has nothing to add to the Staff report but is available to answer questions. MOTION: Councilmember Larson moved and Councilmember Keirn seconded a motion to approve Planning Case #98-28, Mark and Roberta Thompson, 3413 Snelling Avenue North, Side Yard Setback Variance of5 feet conditioned on the porch being left open and never enclosed. Councilmember Malone stated his concern that this is too close to the lot line. He stated he has supported other variances where people have not been impacted but he believes this will result in an impact to the neighbor and he does not find sufficient hardship to consider approval. Councilmember Malone suggested allowing a three foot encroachment for an open structure. He noted this is an area of narrow lots which will result in an encroachment to the abutting neighbor and their ability to use their property. He restated that he does not see the required grounds to consider approval, . Councilmember Aplikowski inquired regarding the location of the driveway for the neighboring property that lies to the south. Ms, Randall noted the location of the shared driveway for the applicant and abutting property and the shared driveway serving the homes to the south. Councilmember Larson stated that he lives four lots away from the applicant and the road, sewer, and water is brought in from the south to serve his house and the house next door. Councilmember Aplikowski stated that ifthe access was from the north it would not work. Mayor Probst asked if a solution has been considered that would allow only a three foot variance. Rosemary McMonigal, McMonigal Architects representing the applicant, stated that the existing stoop needs to be rebuilt in its current condition and in that condition it does not fit the required setback as it exists today. In terms of hardship, she noted that this was discussed at great length at the Planning Commission and ranges from the extreme slope from the side entry to the side property line resulting in undermining the house footings if the stoop were to be removed. Another hardship relates to the trees which would be greatly impacted by excavations, She explained that they did make a modification to pull it back in since the Planning Commission meeting, . Councilmember Malone stated that these are mechanical considerations but not compelling enough to cause the Council to grant a variance to allow the porch to be that close to the property line. He stated that he does not see the need and believes there will be an impact to the next door ARDEN HILLS CITY COUNCIL - DECEMBER 14 1998 4 , property. He noted that the current porch does not encroach into the three foot setback. Ms. . Randall stated that is correct. Councilmember Malone noted the revision since the Planning Commission was only to pull the porch in six inches, Ms. Randall noted the original survey and distance to the side property line. Councilmember Malone inquired regarding the east side of the porch. Ms. Randall stated that there is about a one foot difference, so it would be about six feet. Mayor Probst stated that he is inclined to support the variance request based on the hardship discussed about leaving the current stoop in place since it has footings which limit removal ofthe pilings, the removal of which may damage the neighbor's trees. Mayor Probst requested that the motion include the hardship findings. Council members Larson and Keirn accepted this friendly amendment to the motion. Mayor Probst stated that the hardship has to do with the grades of the site, and the only way to replace the stoop would require supporting the house which could potentially damage the trees on the neighbor's property, Councilmember Malone inquired how the house wouldn't be supported. He stated that it seems the issue is one of convenience of construction, . Councilmember Aplikowski stated that she is inclined to support the request since it does not appear the property to the south will be unduly harmed. She agreed that the issue may be the convenience of construction as opposed to a hardship but she will support the application since it remains within the realm of the City's ordinance. The motion carried (4-1 Malone). 2. Planning Case #98-32, Cardiac Pacemakers, Inc., 4100 HamIine Avenue, Site Plan Ms. Randall explained that the petitioner was requesting approval of a site plan to allow for a minor expansion of 17,520 square feet in Building B at their campus which is located at 4100 Hamline A venue, The expansion would not be seen by adjoining parcels or the public right-of- way, The building addition meets all the required setbacks and the exterior would match the existing exterior of Building B, The site currently had 1,265 parking spaces which was 109 parking spaces more than what was required to accommodate the proposed expansion to Building B. The building meets the height, floor area ratio, and lot coverage requirements. Staff considers this a minor addition to the campus and believe it should not have an impact on the City or the adjacent properties. She advised that two issues have come up since the Planning Commission consideration dealing with a modification to the entrance and providing a sidewalk. The new building will have an emergency exit. . Ms. Randall stated that they will also make the site more aesthetically pleasing by relocating lights and providing an entrance canopy. It was also noted that there is a fire hydrant and watermain in the area of the new structure so Staffrecommends it be relocated to ten feet away ARDEN HILLS CITY COUNCIL - DECEMBER 14,1998 5 from the building, The Building Inspector has been in discussion with the contractor about that . issue and it appears they will be relocated near the sidewalk. Ms, Randall advised that Staff recommended approval of Planning Case #98-32, Site Plan, subject to the provision of sediment and erosion control measures adjacent to the affected area for development, the tire hydrant be relocated to a location along the existing sidewalk per approval by Staff, and that the watermain be relocated at least 10 feet from the proposed and existing building per approval by Staff. The Planning Commission unanimously recommended approval of Planning Case #98-32, Cardiac Pacemakers, Inc., 4100 Hamline Avenue, Site Plan, subject to the recommendations indicated by Staff. Councilmember Malone noted that the neighbor expressed concern with parking since it has been overflowing into the residential area during special events. Dave Reimer, Guidant, stated that he spoke with that resident and resolved his concerns. MOTION: Councilmember Malone moved and Councilmember Aplikowski seconded a motion to approve Planning Case #98-32, Cardiac Pacemakers, Inc., 4100 Hamline A venue, Site Plan, subject to the provision of sediment and erosion control measures adjacent to the affected area for development, the fire hydrant being relocated along the existing sidewalk per approval by Staff, and the watermain be relocated at least ten feet from the proposed and existing building . per approval by StatT The motion carried unanimously (5-0). 3. Planning Case #98-31, City of Arden Hills, Zoning Code Amendment Ms. Randall explained that the City of Arden Hills requested approval of an amendment to the Zoning Ordinance, The amendment would clarify that substandard sized lots which existed prior to the adoption of the Gateway Business District (GBD) and the ordinance being created. She reviewed the properties involved which were in existence prior to the adoption of Ordinance #291. Ms. Randall noted that it also includes a provision to address lots made substandard by a governmental taking so they are exempt from the minimum size requirement of that district. Ms. Randall explained that the Gateway Business District required that single parcels have at least ten acres to be considered developable, Several parcels exist which existed prior to the development of this district that have less than the required ten acres. The proposed Code change would allow these properties to be considered developable. The Code change would also allow parcels that were reduced below the minimum size as a result of a governmental taking to be considered developable. The Code change would not allow a parcel to be subdivided below the minimum size requirement and be considered developable. Ms. Randall reviewed the suggested wording changes and advised that Staff was recommending approval of Planning Case #98-31, Zoning Code amendment. The Planning Commission . unanimously recommended approval of Planning Case #98-31, City of Arden I-Iills, Zoning Code amendment based on the modified language to Section V, K, 5, a, (5), (b) to read "Are substandard in size as a result of the acquisition or condemnation by a governmental entity for ---- ARDEN HILLS CITY COUNCIL - DECEMBER 14, 1998 6 public purpose and remain in separate ownership from adjacent lots from the date of such . acquisition or condemnation." Mayor Probst inquired regarding the impact to existing buildings that want to be modified. Mr. Ringwald explained that they currently have a legal non-conforming lot since they existed prior to adoption of the ordinance. He advised that the City Attorney stated that this modification would make them legal uses and that this was a way to deal with those existing properties. Mr. Ringwald noted that this will provide a level of protection to those property owners that they currently do not have. Mayor Probst stated his concern that no tiny parcels be left that could potentially become developable by this exception. Mr. Ringwald stated that he had the same question but the City Attorney drafted this with only these specific parcels in mind, as indicated by Ms. Randall. Councilmember Malone asked if the reason to include language regarding these parcels is that they are under separate ownership. Mr. Ringwald stated that is correct and advised that the easterly billboard for Neagele is on an eight acre parcel. However, since it is not under separate ownership from the remaining Naegele parcels, this ordinance would not provide separate buildability to that lot. MOTION: Councilmember Malone moved and Councilmember Keirn seconded a motion to approve Planning Case #98-31, City of Arden Hills Zoning Code Amendment, as . presented by Staff and to direct Staff to prepare an Ordinance to be executed and published, The motion carried unanimously (5-0). B. Resolution #98-77, Adopting the 1999-2003 Capital Improvement Plan Mr. Fritsinger eXplained that the Capital Improvement Plan (CIP) historically began being developed in April and May and was ratified in June by consensus at the worksession, He explained that Staff has looked at the CIP and felt additional information should be provided to help others understand what the CIP is about, how the various projects or acquisition of equipment relates to each other, and where the funding will come from, He noted the summary statement has been provided but not an in-depth packet of information as being reviewed tonight. Mr. Fritsinger requested the ratification of the summary portion which is used for planning purposes. He noted that the 1999 section is consistent with what the Council has seen throughout the budget process, Several items were moved out since the current equipment is in adequate condition and can be used. Also, some numbers have been clarified. Mr. Fritsinger stated that there is work to do on this document to make it workable for the general public but Staff wanted the Council to receive this information for review, The Council was asked to adopt Resolution #98-77 which would adopt the 1999-2003 Capital Improvement Plan. . Councilmember Larson asked about a year 2000 planned expenditure of $1.5 million for a maintenance facility and whether it is realistic to show this expenditure in the year 2000, Mr. Fritsinger stated that the conversations held earlier identified the year 2000 to begin construction ------- ARDEN HILLS CITY COUNCIL - DECEMBER 14,1998 7 on the maintenance facility. However, due to planning delays, the numbers have been moved . out. He stated that this is related to the transfcr of the land from the National Guard. Mr. Fritsinger reviewed his conversation regarding maintenance of the joint facility and advised that the National Guard indicated an interest in continuing that discussion, He noted that it is important to identifY how that will be funded and stated that he believes this cost level is realistic, Mayor Probst stated that he spent some time with Ramsey County Commissioner Bennett and believes it is clear the County is anxious to proceed and that financing is not an issue with the County, He reported that this project has risen on the County's project list. Councilmember Malone stated that he talked with Staff about the need to roll this into one piece (rather than three sections) and tile idea of showing the revenue side rather than the current expenditure-only plan. He stated his concern about adopting the CIP and recommended language be included to indicate that it is being adopted in general concept and does not authorize the purchase of anything at this time, Councilmember Malone stated that there is a need to discuss these issues further and it should be clear that adoption tonight would not authorize any of these purchases. Mayor Probst complimented Staff on creating a document that will allow tracking of these issues and layout of the thought proccss behind it. He stated that at the Metropolitan Airports . Commission, they have qualifiers in the approving resolution which basically authorizes Staff to proceed with implementation of the program and to start appropriate study and evaluation so, on an annual basis, the Council only approves the activities for the coming year. Councilmember Malone agreed that this is a nice packet of information but he wants it clear this is not carte blanche for purchases, Mr. Fritsinger suggested that Staff review the language being discussed. He noted that the items marked as 1999 are included in the budget, which will be presented tonight by Staff. Councilmember Aplikowski asked if the motion should indicate this is accepted as a planning tool. Mr. Fritsinger stated that Staff understands this is a tool that is flexible and suggested the resolution be revised with that additional language. Mayor Probst stated that the advantage for the Council to take formal action is that it will set a baseline in terms of direction to Staff. He stated that he agrees the adoption language should not commit it as a five year approved plan. Councilmember Larson asked if it is appropriately acted on when the budget is adopted because then, with regard to 1999 capital improvements, the Council is committed to those that are part of the 1999 budget. . Mr. Fritsinger stated that with the present process, the Council concurs with the current year CIP in June and then Staff provides an updated CIP when the budget is adopted and identifies anything that's changed since June. -- -.------.-.-.--- ARDEN HILLS CITY COUNCIL - DECEMBER 14,1998 8 Mayor Probst asked if all the items in the CIP for 1999 are incorporated into the budget. Mr, . Fritsinger stated that is correct. MOTION: Councilmember Malone moved and Councilmember Aplikowski seconded a motion to adopt Resolution #98-77, Adopting the 1999-2003 Capital Improvement Plan as amended to include language that the 1999 CIP is adopted to assist with the future financial planning efforts ofthe City "but is adopted as a general directional plan and its adoption does not confer the automatic purchase of any of the items listed in the Plan." Councilmember Larson asked if the items in 1999 should be exempted since those items are contained within the 1999 budget. Councilmember Malone stated that he would like to keep that open so it can be further discussed. He stated that he does not want to give away the Council's discretion. Councilmember Larson noted that the agenda includes adoption of a budget that contains that provision so it seems that the items in 1999 should be exempted. Upon the reading of the motion, Councilmember Larson withdrew his objection, Mayor Probst stated that it needs to be clear that this adoption does not commit the Council to future purchases. Staff would need to request authorization to go out for bids and the Council . would have to approve all ofthe purchases and contracts, Councilmember Malone stated that should something unforseen happen next year, the Council needs to maintain its discretion over the purchases, including the City Hall fimding. Councilmember Aplikowski concurred and noted that is also the thought behind the budget, it is adopted as a plan but the purchases require Council approval. Councilmember Malone stated that he does not believe this will be a problem with the City's Staff but he supports preserving the Council's discretion. The motion carried unanimously (5-0). C. 1999 Utility Rates 1. Resolution #98-78, Revising Water Utility Rates effeetive January 1, 1999 2. Resolutiou #98-79, Revising Sanitary Sewer Utility Rates effective January 1, 1999 3. Resolution #98-80, Revising Surface Water Management (SWM) Utility Rates effective January 1, 1999 Mr. Post explained that proposed capital outlays are significant over the ensuing years and noted . that the Council last took formal action in the Fall of 1994 to be effective in 1995 so rates have not changed for four years, During those four years, the revenues generated have been adequate to cover operating costs, fund on-going capital outlays at a predictable level, and improve the financial condition of the enterprise funds. However, some of the demands placed on these ARDEN HILLS CITY COUNCIL - DECEMBER 14,1998 9 utilities for future capital needs may strain those finances. Mr. Post stated that the City has been . notified by the City of Roseville ofa 3% increase in the wholesale cost of water in 1999, which matches the increase of the City's internal cost of operations and labor agreements. Also, needed capital improvements are significant: an up sizing of the waterline for the West Round Lake Road Phase II project, and the replacement of one-half of the residential water meters which will start in 1999, Mr. Post advised that the Metropolitan Council Environmental Services Division (MCES) has become more cost efficient and notified the City of a 5% decrease in treatment costs for 1999 and a corresponding decrease in the year 2000 as well. He stated that MCES treatment costs reflect approximately 60% of the operating costs of the utility. The remaining 40% of the utility's operating costs will experience cost increases in the 2.0% to 3,0% range. Weighing these two factors, Staff would suggest that a 2% rate decrease would be appropriate. He reviewed the anticipated capital improvements. Mr. Post stated that one other area city has a senior rate program (Roseville). The Arden Hills senior sewer rate represents a 50% reduction of the typical residential flat-rate fee. The .- residential base rate for 1998 is $53.95 per quarter with a senior paying $26,95 per quarter. He advised that it has been consistent that the amount of water consumption of seniors on the senior rate is close to 66% to 67% less than residential consumers. Mr, Post stated that the existing 50% senior rate reduction does not have a basis in being tied to any criteria and suggested that the amount of reduction be tied to parallel what is being consumed and to phase in a rate increase . for senior rate customers over the next three years. Then, in 200 I, it will end up at a two-thirds rate which parallels consumption rates, Mr. Post stated that the surface water management utility has been able to fund its capital improvement projects but in looking at the number of streets that need to be reconstructed that do not have a sanitary sewer system, the capital demands will be increasing. Mayor Probst inquired regarding the process for adoption, He stated that he agrees with Staff s recommendations but is concerned this agenda came out on Friday and has not allowed a process for public comments, particularly as it relates to the senior rate increase, Mr. Post stated that the past process involved a Council discussion and not necessarily a public hearing. Mayor Probst stated that he is not suggesting a fonnal public hearing but he believes there may be strong opinions voiced on both sides, Councilmember Aplikowski stated that her last bill was $187 and when she started it was $47, However, no one asked her how she felt out about the increases, She stated that this is a City issue based on costs, so she has a concern about singling out the seniors and allowing a different process for them, She inquired regarding the process to receive the senior rate, Mr. Post stated that it is an age (65 years of age) or disability consideration for the primary home owner. Proof of age or disability is required to start the process. . Councilmember Aplikowski inquired regarding whether both residents need to be of that age. Mr. Post stated that only one resident needs to be of that age. --- ARDEN HILLS CITY COUNCIL - DECEMBER 14, 1998 10 Councilmember Larson stated that he had a lengthy discussion with Mr. Post about the sanitary . sewer rates and understands that there is no way to meter sewage but it is known that rate is related to water use. He stated that it seems to him that it would be worthwhile to have the Finance Committee review this issue and provide recommendations for the Council to consider next year. Councilmember Larson stated that there is currently a flat rate and some residents may be subsidizing other residents. He acknowledged the issue where water use in the summer months may not be water going into the sanitary sewer system due to pools, lawn sprinkling, etc. and during the winter months residents may be away from home, including seniors. He suggested that water consumption over a nine month period be addressed to determine average consumption. Councilmember Larson suggested that all rates be addressed to bring them closer into what the consumption may actually be. Councilmember Keirn stated her concern if the decision is delayed since it should go into effect on January I, 1999, She stated that there is nothing that could be said to change her mind since the determination is based on costs and the recommendation on the senior rate increase is on a step basis with the full rate not occurring for three years. Mayor Probst stated that not all public agencies operate the same way and he knows some councils have to publish items on at least one agenda before the issue is acted on, He stated that Arden Hills does not do that and while he is not suggesting such a process, he believes there should be some notification to residents and an opportunity provided for them to provide comments. He stated that he does have an interest in a discussion on what the process should be . to modifY such a significant policy. Councilmember Aplikowski asked if it is being suggested to phase the senior rate increase in 2000 instead of 1999. Mayor Probst stated that rather than looking at the beginning of the first quarter it would start the beginning of the second quarter which would allow residents to be notified that the rates are being considered, Councilmember Malone asked if this is being suggested for all the rates or just the senior rate. He stated that in the past the Council determined to review rates each year to allow for smaller increases. He noted that delaying this to the second quarter results in the loss of 25% of the revenue increase, Councilmember Malone suggested that the rate increases be considered tonight and asked if anyone is expected to testifY in support of the senior rate increase. He noted that this involves one dollar per month and there is good rationale for this increase to base the rate on usage and eliminate the subsidy that is being paid. Councilmember Malone stated that the senior rate could be delayed but he wonders if anyone will change their mind based on input that could be provided. Mayor Probst stated that in the past the argument has been raised about the incentive to conserve when paying on a consumption basis as opposed to a fixed rate, He stated that he would not . oppose relooking at this option since it has been four years and the City now has different billing software, ------ ARDEN HILLS CITY COUNCIL - DECEMBER 14, 1998 11 Councilmember Aplikowski stated that unless the Council is undecided about what needs to be . done, having people come forward to provide input and then not making any change may be political suicide since residents already think the Council does not listen, She stated that if it is necessary, the Council should just do it since they can explain the rationale. Mr. Post reviewed the numbers for residential and senior rate customers. Mayor Probst stated that he could be dissuaded if someone came in and made a strong case that it should remain a flat rate. On the other hand, it would be interesting to see if any non-senior rate residents would provide input in support. He stated that there is value in communicating what is going to be done prior to it being enacted. Councilmember Larson asked if it can be approved tonight and become effective in January in the absence of any comments voiced at that meeting. Councilmember Malone noted that a three month notice is provided with a notice being stuffed in the water billing going out January 20th. MOTION: Councilmember Keirn moved and Councilmember Malone seconded a motion to adopt Resolution #98-78, Revising Water Utility Rates effective January 1, 1999. The motion carried unanimously (5-0). . MOTION: Councilmember Keirn moved and Councilmember Larson seconded a motion to adopt Resolution #98-79, Revising Sanitary Sewer Utility Rates effective January 1,1999. Mayor Probst noted this effects the senior rate customers and he would like to afford discussion to pull that out pending further notification, Mr. Post reviewed the annual revenue implication, advising there would be a net reduction of $3,328. Council member Malone stated that if the Council does not increase the senior rate then the residential rate will need to stay about the same. Mr. Post stated that this is correct. Councilmember Malone noted the revenue needs to be generated so that results in the residential customers' rate needing to remain the same. Motion carried (3-2 Malone and Probst). MOTION: Councilmember Keirn moved and Councilmember Aplikowski seconded a motion to adopt Resolution #98-80, Revising Surface Water Management (SWM) Utility Rates eilective January I, 1999, correcting the residential service rate to $4.08 per lot. The motion carried unanimously (5-0). . MOTION: Councilmember Larson moved and Councilmember Keirn seconded a motion to direct Staff and the Finance Committee to review the method of setting sanitary ARDEN HILLS CITY COUNCIL - DECEMBER 14, 1998 12 sewer utility rates and provide a recommendation to the Council based on the . consumption issue. The motion carried unanimously (5-0). D. Resolution #98-75, Clarifying Final Sums of Money to be Levied for Levy Year 1998, Payable in 1999 Mr. Post stated that at the Truth in Taxation meeting the Council reviewed the proposed budget and levy and indicated it was comfortable with the proposed levy which represented a 3.20% increase over the payable 1998 levy. The Council has not acted to adopt the 1999 budget but if they do so in regard to the General Fund, Staff recommends the Council adopt Resolution #98-75 which would clarify final sums of money to be levied for levy year 1998, payable in 1999. The Council reviewed the proposed lcvy at the December 7, 1998 Truth in Taxation hearing and did not request any significant changes. As a result, the net levy, after HACA, is proposed at $1,923,937. MOTION: Councilmember Larson moved and Councilmember Keirn seconded a motion to adopt Resolution #98-75, Clarifying Final Sums of Money to be Levied for Levy Year 1998, Payable in 1999, The motion carried unanimously (5-0). E. Resolution #98-76, Adopting the 1999 Budget Mr. Post stated that the Council was asked to adopt Resolution #98-76 which would adopt the . 1999 Budget which was revised based on Council input from the past several months. He noted the bench handout including summary information and salary allocation changes. Mr. Post stated the General Fund, in terms of expenditures, is up about $20,000 as is the corresponding revenue. The other major expenditure change, based on direction by Council, is a subcontracted part-time building inspector funded through increased building permit fee revenues, Mr, Post noted that the resolution details revenues and expenditures by fund type. MOTION: Councilmember Keirn moved and Councilmember Aplikowski seconded a motion to adopt Resolution #98-76, Adopting the 1999 Budget. Councilmember Larson asked if the $14,000 Fire Department capital expenditure discussed previously is in the budget. Mr. Post stated that it is not in the budget. The motion carried unanimously (5-0). F. Resolution #98-73, Reapportionment of Assessments Mr. Post stated that this action is in resolution form as required by Ramsey County. He explained that it addresses the two remaining assessments from Plat Division #DH 066501 since two property owners have acquired additional square footage and obtained new PIN numbers. The Council was asked to adopt Resolution #98-73 wbich would reapportion assessments related . to Improvement No. 98RECON5YR. Councilmember Malone asked where the additional square footage came from. Mr. Post stated his understanding that it was an island oflandlocked property which was acquired, ARDEN HILLS CITY COUNCIL - DECEMBER 14, 1998 13 MOTION: Councilmember Malone moved and Councilmember Keirn seconded a motion to . adopt Resolution #98-73, Reappointment of Assessments. The motion carried unanimously (5-0). G. Pay Estimate #7 and Change Order #4, Lametti & Sons, Gateway Business District Mr. Brown stated that BRW and Lametti & Sons have been negotiating the details of the change order over the past several months, Some of the change order items resulted earlier this year but were not items specifically included in the contract and were negotiated on a time and materials basis. This was tracked and Lametti's submittal of costs were negotiated to come to a mutual agreement on what was suitable for the work performed, This change order addresses storm water pond relocation, acquisition and excavation ofthe pond's new site, and an additional storm water run to the MnlDOT ditch, He advised that the pond is now located under the power lines as opposed to the center of the lot. It also includes extension of a 12 inch watermain from the end of the cul-de-sac to a point 500 feet east, hydrant relocation, small lateral watermain extensions, sanitary sewer work resulting from an unforseen condition at the south end of 13th Street where the existing main was lower than the downstream manhole by eight inches to one foot, replacement of an existing eight inch watermain lead which should be reimbursed by Welsh Company, poor soil excavation, and importing suitable soils, Mr. Brown stated that he feels the prices negotiated with Lametti were generally competitive and he recommends the Council approve Pay Estimate #7 to Lametti and Sons in the amount of $208,796.54 for work in the Gateway Business District. Change Order #4 included additional work for the stormwater pond, . watermain, sanitary sewer, and soil corrections and totals $182,973.53. He noted a retainage of 2% will be held. Mayor Probst asked ifthe costs of replacing the existing eight inch watermain lead will be recovered from the Welsh Company. Mr. Brown stated that the Welsh Company is aware of it and it is expected that all but $500 or so would be reimbursed. Mayor Probst asked if it has been confirmed that the City is not duplicating any payment for soil corrections. Mr. Brown stated that this is correct and has been confirmed by painstaking review. He advised of negotiations which occurred that resulted in lower costs for this work. Mr. Brown advised that additional bills from the contractors' subcontractors were submitted but they were modified and reduced after discussion. Mayor Probst asked if the Council will receive a statement that upon execution of this the City is not subject to additional claims, Mr. Brown stated that this can be added and he does not think it will be a problem. He noted that the contractor will have to provide lien waivers from all subcontractors, Mayor Probst asked whether Staff thinks it would be appropriate to have discussion with the City's former City Engineer since this includes a number of items that were discoverable before the project proceeded and about 60% of the contract is in change orders, . Mr. Fritsinger stated that based on his work with the Midwest case and those conversations, one of the things that was very clear when the City transitioned from the previous engineering firm to BR W was that Howard Green made some assurances that the City reviewed the plans and ARDEN HILLS CITY COUNCIL - DECEMBER 14,1998 14 specifications and signed off on them. In this case, the City was having a difficult time getting . the plans and probably covered that part of the equation but he thinks there should be some conversation with the City's attorney to verifY that point. He stated that attempting to get any reimbursement from them is in doubt. Councilmember Malone stated that he shares the Mayor's frustration about the increasing project and costs. Mr. Fritsinger commented on the issues that resulted in the increased costs including property acquisition, soil corrections, road work, etc, He stated that some issues are clearly design issues but others came up as the project proceeded and at the request of the developer. Councilmember Larson stated that when he looked at this accumulated amount he found it was 60% more than believed it would be. He asked what Change Order #2 is for. Mr. Brown stated that involved building the roadway, import of soils, and earthwork. It also included some costs to pulverize the foundations that were found, Councilmember Keirn suggested a letter be sent to Howard Green about the additional costs that were incurred. MOTION: Councilmember Keirn moved and Councilmember Aplikowski seconded a motion to approve Change Order #4 in the amount of $182,973.53 to Lametti & Sons, . Inc. for the Gateway Business District. The motion carried unanimously (5-0), MOTION: Councilmember Malone moved and Councilmember Keirn seconded a motion to approve Pay Estimate #7 in the amount of$208,796.54, to Lametti & Sons, Inc. for the Gateway Business District with a retainage of2% being held until the bituminous repair work is completed. The motion carried unanimously (5-0). H. Resolution #98-74, Commending Susan Keirn for Her Years of Service to the City of Arden Hills Mayor Probst read in full Resolution #98-74 commending Susan Keirn for her years of service to the City of Arden Hills. He extended his personal appreciation to Councilrnember Keirn for her service to the City. MOTION: Councilmember Aplikowski moved and Councilmember Larson seconded a motion to adopt Resolution #98-74, Commending Susan Keirn for Her Years of Service to the City of Arden Hills, The motion carried (4-0-1 Keirn). I. Cancellation of December 21st and December 28th Meetings Mr. Fritsinger stated that the Council was asked to formally cancel the December 21, 1998 . worksession and the December 28, 1998 regular Council meeting. It was noted that the next regular meeting would be on January 4,1999. He advised that this is subject to change depending on what happens with the Indykiewicz property. ARDEN HILLS CITY COUNCIL - DECEMBER 14,1998 IS MOTION: Councilmember Malone moved and Councilmember Larson seconded a motion to . cancel the Council meetings of December 21,1998 and December 28,1998. The motion carried unanimously (5-0). ADMINISTRATOR COMMENTS Mr. Fritsinger noted that the Council was provided with the layout of the Council Chamber design and Staff is requesting their comments and suggestions. Councilmember Malone asked why the hallway walls are sloped. Mr. Fritsinger stated that deals with sight lines and ability to have brochures and other materials on display. It also deals with the suspended ceiling and providing security into the office areas. Councilmember Malone stated his frustration at the classic line-up of offices along the outside walls and his preference for the offices to be located to the inside. Mr. Fritsinger advised that Corporate Express has put a Santa Claus on the roof of their building as they have been doing since 1971, He advised that it is a violation of the Sign Ordinance. Staff did talk with them about removing it and they mentioned it has been done since 1971. Mayor Probst asked if a complaint was received, Mr. Fritsinger stated that a complaint was not received and advised of other requests received but denied to place intlatable figures on rooftops. . Councilmember Keim stated that this figure is not an advertisement, Councilmember Malone commented on the problem with establishing a precedent. Mayor Probst asked where you "draw the line" if Christmas lights or other holiday decorations are displayed. Councilmember Malone suggested that they be sent a letter notifying them that the Santa Claus can remain this year but must be not used after the year 2000. He noted that this will provide them with some notice. COUNCIL COMMENTS Councilmember Malone notified the Council that the Fire Department is likely to increase their pension. The current pay is $24 per year of service per month for the rest of their lives starting at age 50, He advised that it may be increased to $25 - $26 dollars. Mr. Fritsinger stated that the City Attorney did clarify the language relating the Fire Department actuary which he will provide to the Council. . Mayor Probst asked if the City can reduce their contribution. Councilmember Malone stated that their pay per month and lump sum payment amounts have increased substantially and when benefits are increased they are increased to all. ARDEN HILLS CITY COUNCIL - DECEMBER 14,1998 16 Councilmember Aplikowski requested that the next newsletter include mention of the awards . received by Megan Ricke and Tracy Petersen, With regard to the Council Chamber plan, she stated that she has no objection but wondered about the positioning of the Council benches, Mr. Fritsinger advised that the benches wilJ be shifted toward the center ofthe wall. Mayor Probst stated that the Council did publicly recognize Tracy Petersen and he wants to also recognize Megan Ricke, Councilmember Keirn advised that the Parks and Recreation Commission reviewed the plans for Bethel College and found some neighbors are very opposed to the project. She also reported on the meeting of the Northwest Youth and Family Services and Business Relations Committee and advised that they are looking at different ideas for 1999 with their next meeting the beginning of February. Councilmember Keirn thanked all for their time and patience in working with her while she served as Councilmember. Mayor Probst stated that it has been a pleasure serving with Councilmember Keirn. ADJOURN MOTION: Councilmember Malone moved and Councilmember Aplikowski seconded a . motion to adjourn the meeting at 9:49 p,m, The motion carried unanimously (5- 0). Br~r City Administrator NOTICE OF MEETINGS The next regular City Council meeting will be held Monday, January 4, 1999 at 7:30 p.m. at the Arden Hills Council Chambers. .