HomeMy WebLinkAboutCC 05-26-1992 r �
• MINUTES
CITY OF ARDEN HILLS, MINNESOTA
REGULAR CITY COUNCIL MEETING
May 26, 1992
7 : 30 F.M. - City Hall
CALL TO ORDER/ROLL CALL
Pursuant to due call and notice thereof , Councilmember
Mahowald called to order the regular City Council meeting at
7 : 30 p .m. Present : Councilmembers JoAnn Growe , Dale Hicks ,
Thomas Mahowald, Paul Malone . Mayor Sather arrived at 7 : 50
p .m. Also present were: City Attorney , Jerry Filla ; City
Engineer , Mark Graham; Public Works Superintendent , Dan
Winkel ; Acting Clerk Administrator , Catherine Iago . Minutes
transcribed from tape by Recording Secretary , Foster .
ADOPT AGENDA
MOTION : Malone moved, seconded by Growe , to adopt the May 26 ,
1992 agenda as presented. Motion carried unanimously ( 4-
0 ) .
APPROVAL OF COUNCIL MINUTES
• MOTION : Hicks moved, seconded by Malone , to approve the minutes
of May 11 , 1992 Regular Council Meeting as prepared.
Motion carried unanimously ( 4-0 ) .
CONSENT CALENDAR
MOTION : Malone moved, seconded by Growe to approve the Consent
Calendar and authorize execution of all necessary
documents contained therein. Motion carried unanimously
( 4-0 ) .
a . Acknowledgement of Resolution No . 92-36 Accepting
Bid and Authorizing Execution of Contract in the
Matter of the 1992 Keithson Area Storm Sewer
Improvements .
b. Approve List of Claims/Payroll .
PUBLIC COMMENTS
There were no public comments .
UNFINISHED AND NEW BUSINESS
CRDINANCE NOS . 286 & 287-
RESIDENTIAL RECYCLING
Attorney Filla advised that per Council direction given at the
May ii , 1992 Council meeting , he drafted proposed Ordinance
287 relating to imposition of a residential recycling fee for
• Arden Hills Council 2 May 26 , 1992
multi-family units and manufactured home parks . He added that
the proposed ordinance imposes a fee unless proof is provided
by July 15 , 1992 of contracting with an alternative recycling
service .
Filla stated that based upon recommendations by the City ' s
recycling hauler , he also drafted proposed Ordinance 286 which
prohibits scavenging of recyclable materials .
MOTION : Malone moved , seconded by Hicks , to adopt Ordinance No .
286 Relating to the Scavenging of Recyclable Materials .
Motion carried unanimously ( 4-0 ) .
MOTION : Malone moved, seconded by Growe, to adopt Ordinance No .
287 Imposing a Residential Recycling Fee . Motion carried
unanimously (4-0 ) .
RESULTS OF 1991 AUDIT
Gary Groen , of Abdo , Abdo & Eick , appeared before Council for
the purpose of reviewing the City' s 1991 audit report . Groen
highlighted specific accounts comparing budget to actual
• figures .
Groen reported that the City is realizing a 94% tax collection
rate . With regard to the negative variance in the general
fund budget , Groen explained the primary reason is delinquent
taxes . He also noted that the positive variance in Fire
Services is due to reimbursements from 1989 and 1990 which
were applied in 1991 .
Groen explained account transfers in and out and reviewed
special funds , debt service funds , capital improvement funds ,
and enterprise funds giving some comparisons to previous
years .
In response to Councilmember Malone' s inquiry , Groen provided
clarification as to how interest is managed on special
assessment bonds .
Councilmember Mahowald asked Groen to describe the overall
financial picture of all funds . Groen compared the major
funds to previous years and stated the overall picture is
"close to or better than a year ago" .
Councilmember Malone drew attention to some notable cost
overruns in the Public Works and Recreation Program areas .
• Council directed the Public Works Superintendent and Parks
Director to work with Groen to address those overruns and
provide Council with an analysis report at the next Council
meeting .
411 Arden Hills Council 3 May 26 , 1992
ARDEN PLACE DRAINAGE
Mayor Sather arrived at 7 : 55 p .m.
Engineer Graham provided background on this issue . He
reported that a public hearing was held in October , 1991 where
plans were presented to extend a 12" pipe from the rear of
1553 Arden Place to the south toward Lake Johanna to correct
drainage problems in the Arden Place area . Graham stated that
further review of the situation was then delayed due to the
extreme snowfall which began the end of October , 1991 .
Referring to his May 18 , 1992 report , Graham explained the
proposed layout of two drainage options and compared them as
follows :
Option 1 would be the most direct route, however it would
require extensive removal of existing trees , would
present construction difficulties , and would require
easement acquisition . The cost of Option 1 would be
about $17 ,000 plus easement acquisition.
• Option 2 would be more favorable in that construction
would take place in City owned right-of-way and would
minimally affect existing trees . The cost of Option 2
would be about $24 , 000 .
Graham recommended Option 2 and advised that Option 1 has
received some opposition from affected residents . He added
that either option would provide an adequate solution to the
drainage problem.
Councilmember Growe asked to compare Option 1 and Option 2
relative to impact on existing trees . Graham said Option 1
would require the removal of possible 15 - 18 trees , while he
would hope that Option 2 could avoid any tree removal .
Councilmember Hicks inquired as to why the drainage and
easement problem was not addressed when the house at 1553 was
built . Graham stated there was a drainage pipe in place at
that time and the placement of that pipe has not changed, but
the pipe has been plugged for some time , therefore ineffective
as a drainage system.
Wally Bauer , 1553 Arden Place, stated that when he bought his
lot , he assumed the existing drainage pipe was adequate, then
the City issued a building permit , the house was built , the
S drainage problem was identified, and the City has tried to no
avail to unplug the existing pipe.
• Arden Hills Council 4 May 26 , 1992
Public Works Superintendent Winkel reported that different
methods have been used three or four times to unplug the
existing 6" - 8" pipe , but have been unsuccessful .
Councilmember Malone commented that information and options
have become available since the October , 1991 public hearing,
therefore it would be appropriate to hold another public
hearing to help Council choose the least expensive , most
appropriate solution .
Councilmember Mahowald asked how many homes in the area
contribute to the existing drainage problem. Graham said
there are eight homes involved.
The question of cost for easement acquisition was raised.
Attorney Filla advised that the City may have easement rights
or may be able to negotiate for easement , and the cost of
doing so may range from quite small to very significant . He
added that if condemnation procedures were required, the cost
of such procedures would exceed the difference in cost between
Option 1 and Option 2 . Councilmember Hicks commented that
easement acquisition estimates are essential in comparing the
• two options .
Dale Noyed, 3505 Ridgewood Road reported that he attended a
meeting at Johanna Beach Club regarding a solution to this
problem and there was no overwhelming support or opposition
for any particular method to solve the problem.
MOTION : Malone moved, seconded by Mahowald, to order a public
hearing on the issue of Arden Place drainage to be held
at 7 : 30 p .m. , June 29 , 1992 ; and direct the Engineer to
prepare comparisons of Options 1 and 2 for consideration.
Motion carried unanimously ( 5-0 ) .
CHARITABLE GAMBLING REGULATIONS
Temporary City Accountant , Terry Post , reported that the City
is tracking very well against budget in the area of charitable
gambling operations . However , in reviewing the method of
licensing , Post , noticed that most charitable gambling
organizations are not complying with ordinance as it defines
"gross profits" and this has created a disparity between what
the City expects to be paid and what it is actually being paid
by licensees .
Post and Attorney Filla advised that the ordinance is
• consistent with State law and clearly defines the formula by
which charitable gambling licensees are to calculate their
obligation to the City . That formula is "Total gambling
receipts , less prizes and awards , less allowable expenses ,
multiplied by 10% payable quarterly to the City . "
• Arden Hills Council 5 May 26 , 1992
Post said his concern is that the majority of licensees are
including taxes as an "allowable expense" . The result is that
most licensees are paying the City 10% after taxes rather than
before taxes , and the City is collecting about $60 , 000 less
than it should be .
Attorney Filla explained that it is a "lawful purpose" for
charitable gambling licensees to pay taxes , but taxes are not
included as an "allowable expense" as defined by the State
Gambling Control Board .
Post identified three alternative actions to address this
issue : 1) Amend the ordinance to redefine licensees '
obligation to the City; 2 ) Collect retroactively from the
licensees ; 3 ) Clarify with licensees their obligations per
current ordinance .
MOTION: Hicks moved, seconded by Growe , to notify charitable
gambling licensees that effective July 1 , 1992 :
1 ) The method of calculating their gross profits will
be per ordinance , i . e . , gambling receipts less
prizes and awards , less allowable expenses , equal
• gross profits ;
2 ) The City expects to receive 10% of gross profits ;
3) Allowable expenses does not include any level of
taxes .
Councilmembers Mahowald and Malone commented that is seems
reasonable to include certain expenses as "allowable
expenses" , but perhaps computing the City ' s 10o based upon
pre-tax figures could be construed as imposing a sort of
double jeopardy .
Mayor Sather commented that he would be inclined to support
Councilmember Hick' s motion because the City must be
responsible to collect from every appropriate legal revenue
source; in this case the City is missing a revenue
opportunity .
Councilmember Malone commented that it has become much more
difficult and time-consuming to administer and enforce
charitable gambling operations than the City originally
anticipated .
Councilmember Mahowald suggested further thought and review of
this item before taking action.
• Councilmember Hicks withdrew his motion, Growe withdrew her
second.
• Arden Hills Council 6 May 26 , 1992
Councilmember Hicks stated that licensees are not being
treated equally and fairly , that most licensees are not all
following the rules . He raised the possibility of amending
the ordinance to continue the 10% pre-tax obligation to the
City, but slightly reduce the extent to which licensees must
contribute to the trade area .
Council agreed to revisit this issue administratively .
HIRING OF TEMPORARY
PUBLIC WORKS EMPLOYEE
Public Works Superintendent Winkel had provided Council with
a request for authority to hire a full -time employee on a
temporary basis to assist the Public Works crew during the
summer in light of the absence and uncertain return of
employee Fred Reed. Winkel ' s recommendation was to extend
employment to Philip Perron who has twenty years of sewer and
water experience.
MOTION : Mahowald moved, seconded by Growe , to authorize the
hiring of Philip Perron as a full -time, temporary Public
• Works employee , effective June 1 through September 1 ,
1992 , at a rate of $11 . 35 per hour . Motion carried
unanimously ( 5-0 ) .
EXTENSION OF SICK LEAVE
FOR PUBLIC WORKS EMPLOYEE
Public Works Superintendent Winkel updated Council as to
Public Works employee , Fred Reed' s condition . Winkel reported
that when he wrote his May 22 , 1992 memo requesting Council
consider extending additional sick leave for Reed he did so
with the understanding that Reed would be returning to work
prior to the end of June ; however , since that memo was
written, Winkel has met with Reed and questions Reed' s ability
to return to work and perform the duties of his job in the
near future .
Winkel stated that he has talked with Reed who understands
that sick leave cannot be extended indefinitely . Winkel
explained since Reed' s condition is not related to a work
injury , Reed is ineligible for workers ' compensation benefits ,
but is collecting some disability from his insurance company ,
and has used his accrued vacation, sick leave , and extended
sick leave to supplement his income.
•
• Arden Hills Council 7 May 26 , 1992
Mayor Sather commented that it is unrealistic to think that
Reed could ever "pay back" the sick leave already extended,
and he was concerned about extending additional sick leave
since there is the chance Reed will be unable to return to his
job, and the City has already extended benefits beyond what
Reed had accrued.
The question was raised how other cities typically handle such
a situation. Winkel said that a poll of other cities
indicated that granting medical leave of absence without pay
is a common practice , however , the employee would need to
request that himself . Mayor Sather said he would support such
leave for a finite period of time .
MOTION : Hicks moved, seconded by Malone , to : 1) Ask Fred Reed to
use the balance of his accrued vacation time , 2 ) Deny
additional extended sick leave, and 3 ) Request an opinion
from Reed' s doctor regarding an anticipated return to
work date . Motion carried unanimously ( 5-0 ) .
APPROVAL TO PURCHASE TRACTOR
• Winkel referred to his May 21 , 1992 memo on this agenda item
which reported that the City has the opportunity to purchase
a used 1988 Case 580-K Tractor/Backhoe , which appears to be in
excellent condition, having been well maintained on a routine
basis , for $25 , 000 from Perron Sewer and Water Construction
Company .
Winkel said the purchase price of the tractor was $42 ,000 in
1988 , it would sell for about $30 ,000 now from a dealer , and
a new comparable tractor would be over $50 ,000 . Winkel stated
that the budget has $25 , 000 allocated for the purchase of a
Bobcat , but that he would prefer to take advantage of the
opportunity to purchase the tractor at this time with hopes of
also purchasing a Bobcat (perhaps used) using funds saved
during the year from capital expenditures .
Councilmember Hicks asked if the City currently has a backhoe
and tractor . Winkel said the City currently does not have a
backhoe , and plans are to use the City ' s current tractor as a
trade in when a Bobcat is purchased.
Councilmember Malone encouraged Winkel to look for a used
Bobcat when the appropriate time comes to make the purchase .
Councilmember Hicks asked if Winkel could negotiate a price
less than $25 , 000 for the Case tractor . Winkel stated that
• $25 ,000 is already a very good price given the condition and
maintenance record.
Council was reminded that the purchase would not be subject to
sales tax if transacted before June 1 , 1992 .
• Arden Hills Council 8 May 26 , 1992
MOTION : Hicks moved, seconded by Mahowald, to authorize the
expenditure of $25 , 000 for the purchase of a 1988 Case
tractor/backhoe from Perron Sewer and Water . Motion
carried unanimously (5-0 ) .
AMEND JOB DESCRIPTION FOR
ADMINISTRATIVE SECRETARY
Council referred to Acting Clerk Administrator Iago' s May 22 ,
1992 memo wherein Iago suggested amending the job description
of the Administrative Secretary to include serving as
secretary to the Planning Commission, attending Planning
Commission meetings and preparing minutes .
MOTION : Malone moved, seconded by Hicks , to approve the use of
Administrative Secretary Tery Shield ' s time as Recording
Secretary for the Planning Commission and authorize the
Acting Clerk Administrator to make the appropriate
revisions to the current job description. Motion
carried unanimously (5-0 ) .
COUNCIL COMMENTS
• HISTORY OF KEITHSON POND
Councilmember Hicks reported that the former City Engineering
firm of SEH has promised to forward background material
regarding the history of Keithson Pond . He said he would keep
Council updated on this issue .
Councilmember Mahowald , having been absent from the May 11 ,
1992 Council meeting , asked if Council determined an
assessment amount for Keithson Pond. Attorney Filla said that
a range was identified, but no definite amount has yet been
determined.
FIRE DEPARTMENT UPDATE
Councilmember Malone updated Council regarding the recent Lake
Johanna Volunteer Fire Department Pension Fund meeting .
NEW CITY HALL INITIAL MEETING
Mahowald asked if a date has yet been scheduled for a meeting
amongst staff and architects for the new City Hall . Acting
Clerk Iago stated that arrangements have not been finalized
yet , but that a morning meeting on June 10 is a possibility .
•
• Arden Hills Council 9 May 26 , 1992
SCHEDULE JUNE WORKSESSION
MOTION : Malone moved, seconded by Hicks , to schedule a Council
worksession to be held 4 : 30 p .m. on June 15 , 1992 .
Motion carried unanimously ( 5-0 ) .
ADJOURN
MOTION : Malone moved, seconded by Hicks , to adjourn the meeting
at 20 p .m. Motion c rried unanimously ( 5-0) .
Tho as R. Sather , Mayor Catherine Ia , Deputy Clerk
NOTICE OF MEETINGS :
The next regular Council meeting will be held June 8 , 1992 at 7 : "
p .m. at City Hall .
The next Council worksession will be held June 15 , 1992 at 4 : 30
p .m.
•
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TNUTEE
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