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HomeMy WebLinkAboutCC 09-09-1996 I I .- . . I I . . .. I . . . . I . f' I MINUTES CITY OF ARDEN HILLS, MINNESOTA REGULAR CITY COUNCIL MEETING SEPTEMBER 9, 1996 7:30 P.M. - NEW BRIGHTON FAMILY SERVICE CENTER CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Acting Mayor Beverly Aplikowski called to order the regular City Council meeting at 7:35 p.m. Present: Acting Mayor Beverly Aplikowski, Councilmembers Dale Hicks, Susan Keirn, and Paul Malone. Absent: Mayor Dennis Probst Also present were: City Administrator, Brian Fritsinger; City Accountant, Terry Post; Community Development Director, Kevin Ringwald; Parks & Recreation Director, Cindy Walsh; City Engineer, Greg Stonehouse; Administrative Secretary Sheila Stowell; and Recording Secretary, Carla Wirth. ADOPT AGENDA It was noted the agenda had been revised by adding Agenda Item 6f, Resolution #96-53 Consenting to the Transfer of Control of and Certain Ownership Interests in a Cable Television Franchisee to Continental; and 6g, Consider Resolution #96-54 Consenting to the Transfer of Control of and Certain Ownership Interests in a Cable Franchise to U.S. West. MOTION: Keirn moved and Malone seconded a motion to adopt the agenda for the September 9, 1996, Regular City Council meeting as revised. The motion carried unanimously (4-0). . APPROVAL OF MINUTES August 26, 1996, Regular Council Meeting No corrections. MOTION: Malone moved and Hicks seconded a motion to approve the August 26, 1996, Regular Council Meeting minutes as presented. The motion carried unanimously (4-0). I , ,- I I I I , I Ie , I I I I I I i' I ARDEN HILLS CITY COUNCIL - SEPTEMBER 9. 1996 2 CONSENT CALENDAR A. Sheehy Tennis Court - Lease Agreement B. Claims and Payroll MOTION: Hicks moved and Keim seconded a motion to approve the Consent Calendar as presented and authorize execution of all necessary documents contained therein. The motion carried unanimously (4-0). PUBLIC COMMENTS Acting Mayor Aplikowski invited the audience to address the Council on any issue not already on the agenda. There were no public comments. UNFINISHED AND NEW BUSINESS A. Resolution #96-52, Supporting the Proposed Turnback of a Portion of Round Lake Road from MnillOT to the City of Arden Hills Kevin Ringwald, Community Development Director, advised the Council that staff is requesting approval of the proposed resolution on behalf of Welsh Companies which supports the release of excess right-of-way currently under the jurisdiction ofMn/DOT. He explained this turnback is not a turnback of a specific street, it is a turnback of a portion of street right-of-way (1-35W) adjacent to Round Lake Road and Butchers Street and has been requested in order to facilitate additional development in the Gateway area. It was noted the State is prohibited from transferring property to individuals, but can transfer property to municipalities who may then transfer the property to individuals. Mr. Ringwald advised the transfer of property will not involve the transfer of any funds between any of the parties. MOTION: Malone moved and Keim seconded a motion to adopt Resolution #96-52, Requesting the Release of Certain Rights-of-Way by the Mn/DOT in the Gateway Business District. The motion carried unanimously (4-0). B. County Road F - Final Pay Estimate Greg Stonehouse, City Engineer, advised the Council is asked to authorize the final pay estimate to Midwest Asphalt in the amount of$126,326.97. This payment is subject to receipt of the appropriate documentation from Midwest Asphalt. Mr. Stonehouse eXplained that the City Attorney has reviewed this issue and recommends payment of the requested amount since the work for County Road F Reconstruction Project has been completed and accepted. It was noted the additional request for payment of$141,378.15 by Midwest Asphalt is still under investigation and has no impact on the action requested as part of the final pay estimate. With regard to this additional request for payment, the City Administrator and City Attorney recommend reimbursement of the contract amount ($126,326.97) and to take no action on the additional claim at this point in time. Mr. Stonehouse advised of the $1,200 deduction for sealcoating of the Valentine Park parking lot which was damaged during construction. I ~. I I I I I I I .. I I I I I I I i' I ARDEN HILLS CITY COUNCIL - SEPTEMBER 9. 1996 3 Councilmember Hicks inquired regarding the progress made on additional issues raised in the contractor's request for additional payment. Mr. Stonehouse stated as far as the City is concerned, those issues have been resolved. He explained that underground utilities are not normally identified on the plan, just in case the location is not exact. However, it is customary to show all over ground utilities and the bids clearly outline it is the contractor's responsibility to investigate those issues to their satisfaction prior to preparing the bid. MOTION: Hicks moved and Keirn seconded a motion to authorize the Final Pay Estimate to Midwest Asphalt for the County Road F Reconstruction Project in the amount of $126,326.97. The motion carried unanimously (4-0). C. Resolution #96-50, Clarifying Proposed Sums of Money to be Levied for Levy Year 1996 Terry Post, City Accountant, reviewed the calendar of events involved in the 1997 budget process and advised that the Council is requested to adopt the proposed resolution which clarifies proposed sums of money to be levied for Levy Year 1996, Payable in 1997. The net levy, after HACA, is proposed at $1,829,320 or a 1.95% increase from Levy Year 1995. Mr. Post explained the adoption of a levy at this time is a requirement of the Truth In Taxation process. This increase, if adopted, would be the maximum increase in the levy and the only change which could be made from this point forward would be to decrease the levy. Mr. Post stated nothing has come to staff s attention to change budget items previously discussed. In response to Councilmember Malone, Mr. Post explained the proposed levy amount is net of HACA, and the increase of 1.95% appears to be lower than surrounding communities. Acting Mayor Aplikowski asked if the proposed increase is sufficient to meet the needs of Arden Hills. Mr. Post responded that it addresses the spending priorities established by Council as part of the budget process. MOTION: Keirn moved and Malone seconded a motion to adopt Resolution #96-50, Clarifying Proposed Sums of Money to be Levied for Levy Year 1996. The motion carried unanimously (4-0). D. Resolution #96-51, Adopting Truth in Taxation Hearing Dates and Location for Proposed 1997 Taxes Payable Mr. Post advised the Council is also requested to adopt the proposed resolution adopting the Truth In Taxation hearing dates and locations for proposed 1997 taxes payable. Because the City cannot schedule its initial hearing and continuation hearing on dates being used by Ramsey County, Metropolitan Council, or school districts, the Council will need to consider additional meetings or change current meeting dates. I . .- . . . . I . .. . . . I I I . f' . ARDEN HILLS CITY COUNCIL - SEPTEMBER 9 1996 4 Mr. Post suggested, since regularly scheduled Council meeting dates would not be available for budget hearings, scheduling the initial public hearing on Thursday, December 5,1996,7:30 P.M. at the Army Reserve Center; a continuation hearing (if needed) on Thursday, December 12, 1996, at 7:30 P.M. at the Army Reserve Center; and the adoption hearing on Monday, December 16,1996, at 7:30 P.M. immediately following the Council Worksession. MOTION: Malone moved and Hicks seconded a motion to adopt Resolution #96-51, Adopting Truth in Taxation Hearing Dates and Location for Proposed 1997 Taxes Payable. The motion carried unanimously (4-0). E. Presentation by Youth Hoekey Associations Regarding a Four-Sheet lee Faeility Acting Mayor Aplikowski welcomed representatives of the Mounds View and Irondale Youth Hockey Associations who were in attendance to make a presentation to the City Council regarding the four-sheet ice facility in Blaine. Mike Kreidler stated he has been the President of the Mounds View Hockey Association for three years, a 10-year resident of Arden Hills and prior to that, a lO-year resident of New Brighton. He explained the Youth Hockey Associations are asking for Council support for the four rink hockey arena to be constructed at the National Sports Center in Blaine. Mr. Kreidler reported the Hockey Associations will meet with Ramsey County Commissioners tomorrow and will propose they provide funding of$500,000 towards this facility. Mr. Kreidler stated they are optimistic about this request since last week, the Ramsey County Commissioners approved a $1 million donation for the southern rink being constructed in Highland Park. Mr. Kreidler advised the Mounds View and Irondale Hockey Associations currently have $250,000 in reserves and if approved, discussion will occur between the Hockey Associations of Mounds View and lrondale to establish an escrow account which could be used to assist funding any shortages annually should the entire 2,080 ice hours not be utilized. He noted the Hockey Associations have not asked local communities to make a contribution but, rather, to support the project with the intent that if there is a shortage, it would be covered by the escrow account. Mr. Kreidler explained the National Sports Center Ice Arena is being financed through Anoka County who will issue $7 million of bonds with participating municipalities being asked to sign on as guarantors. Each of the four entities will contribute a $500,000 down payment and the National Sports Center will contribute $500,000 of Mighty Ducks grant money. If the Hockey Association is unable to use 2,080 hours per year, then the cost of$125 per hour (times number of hours not rented) will be divided between four municipalities (Arden Hills, Mounds View, Shoreview, and New Brighton) on a per capita basis. Mr. Kreidler noted this project needs the support of all four municipalities, not for a financial contribution, but to sign on as a guarantor and encourage that Ramsey County will place $500,000 towards this project. Mr. Kreidler provided historical data, in a letter, which included the number of ice hours and participants in the program. I ~. I I I I I I I .. I I I I I I I i' I ARDEN HILLS CITY COUNCIL - SEPTEMBER 9. 1996 5 Councilmember Hicks inquired why the Irondale registration has not increased more significantly. Mr. Kreidler stated he cannot explain why Irondale numbers are stagnant. Councilmember Hicks questioned whether there is actually an increased need for additional ice hours. Kurt Lawrence, 4516 Keithson Drive, Arden Hills, informed the Council that this may be the result of scheduling five-year-old hockey participants enrolled in the lrondale Program to practice at 6:00 a.m. in East Bethel. He stated he knows of one family who decided they could not have their child follow this schedule so they removed the child from the hockey program. Mr. Lawrence explained this is the situation with the lrondale program because there is no ice time available. He pointed out a need also exists for ice time for the girls hockey program which is growing greatly. Councilmember Hicks inquired regarding the rationale for requesting $500,000 from Ramsey County rather than $1 million. Mr. Kreidler explained the southern rink was approved at one time but not constructed. Now, the city of St. Paul indicated it would provide $1 million if matched by Ramsey County. Plus, the Highland Park rink qualified for the Mighty Ducks Legislation grant so they will have $2.5 to construct their rink. Mr. Kreidler advised there were some discussions held last week about a $1 million request, but Ramsey County is concerned that construction of two new rinks will dramatically affect its ability to sell ice at County rinks. Therefore, they only want one built, not two. Mr. Kreidler informed that the proposal is to construct a total of four rinks at the National Sports Center. The cities of Blaine and Coon Rapids have indicated they will each buy one rink and the Mounds View and lrondale Hockey Associations want to be the partner for the third rink. It is anticipated that the city of Brooklyn Park will take the fourth rink. Councilmember Hicks pointed out the Mounds View and lrondale programs only used 1,100 hours last year and inquired regarding their ability to utilize 2,080 hours per year. Mr. Kreidler pointed out that in 1993 they were able to purchase additional ice time at Columbia Arena and it was easily utilized. He stated he does not believe it will be a problem to use 2,080 hours of ice time per year. Councilmember Hicks stated he understands the Hockey Association's suggestion tonight that there is no request for financial support; however, the requested guarantee for City support is different in concept than principal, and he believes it is actually what the City is being asked to do. Mr. Kreidler agreed that if all of the 2,080 hours of ice time is not used, technically, the City would be responsible for that cost but the Hockey Associations will establish an escrow account to protect the cities from that possible contingency. Mr. Kreidler stated he does not believe this will occur but the escrow fund will be established to satisfy the City. Councilmember Hicks inquired regarding the use of the requested $500,000 from Ramsey County. Mr. Kreidler reviewed anticipated financing ofthe proposed National Sports Center Ice Arena via contribution of four participants and bonds sold by Anoka County. To be financially feasible, the four participants must guarantee the purchase of 2,080 hours of ice time per year. The Mounds View and Irondale Hockey Associations would have to guarantee 2,080 hours. I . .- . I . I . I .. I I I I I I I ~ I ARDEN HILLS CITY COUNCIL - SEPTEMBER 9.1996 6 Mr. Kreidler pointed out that there are other users of ice time such as figure skaters and it is possible to use the rink in the spring for dry floor events, such as indoor soccer, etc. It is also anticipated that the cities will want to use some of the hours for park and recreation activities as well. Acting Mayor Aplikowski questioned what would happen if the bonds fail. Mr. Fritsinger explained if the Hockey Associations do not meet the 2,080 hour requirement, the cities would be required to participate in the project and contribute the portion needed to equal to 2,080 hours. In that case, the hours not used would be split between the four participating cities on a per capita basis. Mr. Kreidler reiterated that an escrow account will be established and if a shortage occurs, the difference would be paid from the escrow fund. Acting Mayor Aplikowski asked what would happen if the bonds sold by County of Anoka defaulted. Mr. Fritsinger advised this is unlikely since they are GO Bonds and payment on the debt is guaranteed by each community guaranteeing the use of2,080 hours. Acting Mayor Aplikowski inquired regarding funding from charitable gambling. Mr. Kreidler advised that one-half ofthe $250,000 has been on-hand for the last eight years and was raised from fund raisers, such as selling pizzas. He reported the Hockey Associations have a cash flow from charitable gambling and about one-half of the money in the account is proceeds from charitable gambling but they intend to keep doing fund raisers. Mr. Kreidler commented on the difficulty in fund raising with the "promise" that a rink will be constructed "in the future". He stated if a rink is constructed, he believes the members of the Hockey Associations will continue to participate in fund raising. He pointed out that a project like this will benefit the local youth and high school and he believes the Light Brigade will also be interested in participating. Acting Mayor Aplikowski asked why hockey participants would be interested in traveling to Blaine and not prefer to construct a rink closer to Arden Hills. Mr. Kreidler explained they would not be able to construct a rink at this cost and for many participants, the location in Blaine is no greater than they are currently traveling. Acting Mayor Aplikowski asked why, if there is such a big need for additional ice hours, private money is not being used to construct the arena and why government entities should be involved. Mr. Kreidler asserted it may be for the same reason that private money is not used to build roads or sewers. Also, most arena projects are operated on a break-even basis and if it does not make a profit, it will not attract private money. He advised that the cost for ice time at arenas located on the east coast are much higher and private money is involved with those but, historically, all rinks in the metro area have been constructed via public funds. I ~. I I I I I I I .. I I I I I I I f' I ARDEN HILLS CITY COUNCIL - SEPTEMBER 9. 1996 7 Councilmember Malone stated he has been reading documentation for this project but finds it difficult to follow due to conflicting statements. He noted the total project cost is about $9 million with $2 million being contributed from four participants as up-front money. He inquired whether there will be four or five participants. Mr. Kreidler advised there are five including the Minnesota Amateur Sports Commission which is donating the land and Mighty Ducks funds of $500,000, but not a down payment. Councilmember Malone stated he understands the request for guarantee of hours but one document talked about operating costs, financing, capital costs, etc. He noted that each participant is to contribute a $500,000 down payment but Mr. Kreidler has indicated they only have $250,000. Mr. Kreidler explained they initially proposed to raise $500,000 but are now asking Ramsey County to make that contribution which will be the down payment. Then, the Hockey Associations will place its $250,000 in a cash escrow so it can be used in case of a shortfall. Mr. Kreidler stated if Ramsey County does not agree to make a contribution, the Hockey Associations will still try to contribute, perhaps via a loan. Councilmember Malone noted the anticipated total debt service is about $600,000 per year and the Hockey Associations will be responsible for 25%, for a total exposure of approximately $150,000 per year. However, the escrow count is only for $250,000 and would not cover two years of debt service. Mr. Kreidler explained they currently have $250,000 and will need to know what the City's comfort level is. If they need to increase that amount, they would do so. Councilmember Malone inquired regarding the annual cash flow. Mr. Kreidler explained they operate as a nonprofit organization and charge participants only for the cost to operate (ice time, jerseys, etc.) which are charged back on a pro rata basis. Mr. Fritsinger advised the issues of the escrow amount and covering debt service have been debated and discussed over the last six to seven weeks, in an effort to determine how the escrow account should be set up. Discussion has occurred that, perhaps, a ceiling amount should be considered which could be reduced once the project begins to cash flow. He reviewed a number of options discussed on how to deal with the escrow, ceiling, draw, etc. Councilmember Malone eXplained he is trying to get a "feel" for dollars and exposure. He inquired regarding the scenario if operating costs are greater than anticipated. Mr. Fritsinger explained the Hockey Association/Cities are responsible for debt service and to guarantee the hours. The Minnesota Amateur Spots Commission (MASC) would have the responsibility to determine whether they need to increase the cost per hour of ice time. Mr. Fritsinger advised the Hockey Associations would, in no way, have to incur additional costs for operating costs, only if not meeting ice time. It was noted a board of directors will be established with one member from each arena and city so the MASC cannot, on its own, make a change in the cost of ice hours without agreement by the board. I ~. I I I I I I I Ie I I I I I I I {t I ARDEN HILLS CITY COUNCIL - SEPTEMBER 9.1996 8 Mr. Kreidler pointed out the National Sports Center Ice Arena will need to remain competitive with other rinks so an increase will probably not happen. He advised that the present rate of $125 per hour is in the middle range of what is currently being charged and by the time the facility is completed, it will probably be at the lower level. Mr. Kreidler stated the proposed National Sports Center Ice Arena will have four Olympic-sized rinks which can be used more productively and will be a one-of-a-kind facility in the country. Councilmember Hicks presented an analogy of a shopping center where each family only has a certain number of dollars to spend and questioned the future financial situation of rinks that will lose business to the new arena. Mr. Kreidler stated there are only 1,100 hours of ice time available during the prime-time period so the Hockey Associations will have to go elsewhere to purchase additional prime-time hours needed for their programs. Mr. Lawrence concurred and added that the hockey season for younger players does not start until the end of December and goes through March. He explained the Hockey Association wants younger participants to start earlier but are unable to do so because there is no ice time for younger players to use. Councilmember Keirn brought up that Colwnbia Arena has major structural problems and will need to redirect some of their ice time. Councilmember Hicks questioned the recently constructed facility at Inver Grove Heights. Mr. Kreidler explained the facility is a two-sheet arena, one permanent and the other under a bubble. Councilmember Hicks stated the cost of $3.8 million included Park Department offices and a senior center, and residents are suggesting such an option be considered. Mr. Lawrence noted there is no seating around the second sheet at Inver Grove Heights but the National Sport Center Ice Arena will have seating around all four sheets of ice and intends to attract State as well as international tournaments. Mr. Fritsinger advised of discussions to deal with adding a second sheet at Shoreview but it was determined that costs would be higher, as indicated tonight by Mr. Kreidler and supported by estimates being presented by the MASC. With regard to the question about the ability to utilize 2,080 ice hours, Mr. Greg Mack, Ramsey County Parks Director, has indicated that the Hockey Association request in 1996 was for approximately 1,500 hours from Mounds View and approximately 550 hours from lrondale; but the Associations received only approximately 1,200 hours from that request. Mr. Fritsinger stated typically, the Hockey Associations can use more hours but Ramsey County can only allocate a certain nwnber of hours and there are approximately 2,400 to 2,600 hours of demand it cannot meet. Councilmember Hicks thanked Mr. Kreidler for his presentation and wished him success in his talks with Ramsey County. I ~. I I I I I I I .. I I I I I I I f' I ARDEN HILLS CITY COUNCIL - SEPTEMBER 9. 1996 9 It was noted that the Council will consider formal action at the September 30, 1996, meeting. F. Resolution #96-53, Consenting to the Transfer of Control of and Certain Ownership Interests in a Cable Television Franchise to Continental G. Resolution #96-54, Consenting to the Transfer of Control of and Certain Ownership Interests in a Cable Television Franchise to U.S. West Mr. Fritsinger advised the Council is asked to consider a resolution regarding the transfer of Meredith Cable to Continental Cablevision and then to U.S. West. He advised that questions remain regarding the ability of U.S. West to operate a cable system, but the Cable Commission and its attorneys have reviewed and evaluated this transfer and unanimously recommended the City approve of this transaction Acting Mayor Aplikowski expressed concern that U.S. West will use their telephone operators to solicit residents to subscribe to cable television, which can be an annoyance. MOTION: Hicks moved and Malone seconded a motion to adopt Resolution #96-53, Consenting to the Transfer of Control of and Certain Ownership Interests in a Cable Television Franchise to Continental and Resolution #96-54, Consenting to the Transfer of Control of and Certain Ownership Interests in a Cable Television Franchise to U.S. West. The motion carried unanimously (4-0). ADMINISTRATOR COMMENTS Mr. Fritsinger reminded the Council there will not be a special meeting on Wednesday, September 11, 1996, to canvass the election. A special meeting to canvass election results will only be needed for the local offices of the general election. Mr. Fritsinger advised the RFP for City Hall architectural services are due this week so staff will be holding discussions with interested firms and determine how to proceed with interviews. Mr. Fritsinger reminded the Council of the Worksession and barbeque for volunteer committee members and City staff which is scheduled for Monday, September 16, 1996. COUNCIL COMMENTS Councilmember Hicks reported he will be unable to attend the Youth Service Board meeting on Thursday, September 12, 1996. Acting Mayor Aplikowski commented on telephone calls she received regarding the City's policy for political campaign signs. She advised the Council of State Representative Phil Krinkie's suggestion that the City amend the ordinance to allow signage within five feet of the curb line. . . (' I . . . . I .. I I I I I . . .- . ARDEN HILLS CITY COUNCIL - SEPTEMBER 9.1996 10 Councilmember Malone stated he has also received calls and supports enforcing the City's ordinance and keep signs out of the public rights-of-way. He pointed out this involves a legitimate public safety concern. Mr. Fritsinger clarified that State Statute dictates public rights- of-way and restricts political signs from being located within right-of-way areas. Acting Mayor Aplikowski extended the Council's appreciation to stafffor doing such a good job when meetings need to be relocated. Acting Mayor Aplikowski recognized Cub Scout Troop 408 from Chippewa School and welcomed them to the meeting. ADJOURN MOTION: Keirn moved and Hicks seconded a motion to adjourn the meeting at 8:40 p.m. The motion carried unanimously (4-0). ~~~~. Beverly Apli wski Acting Mayor ~~ /7. .... /"' /~/ --~/' , Brr~n Fritsi~ger V City Administrator NOTICE OF MEETINGS The next regular City Council meeting will be held September 30, 1996, at 7:30 p.m. at New Brighton City Hall.