Loading...
HomeMy WebLinkAbout05-19-08-WS ~ ~HILLS Approved: June 9, 2008 CITY OF ARDEN HILLS, MINNESOTA CITY COUNCIL WORK SESSION MEETING MAY 19, 2008 5:00 P.M. - ARDEN HILLS CITY COUNCIL CHAMBERS CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor Stan Harpstead called to order the City Council Work Session meeting at 5:08 p.m. Present: Mayor Stan Harpstead; Councilmembers David Grant, Fran Holmes, Brenda Holden and David McClung. Absent: None. Also present: City Administrator Ronald Moorse; Interim City Administrator Jim Willis; Assistant City Administrator Noah Simon; Finance Director Sue Iverson; City Planner James Lehnhoff; and Stacie Kvilvang, Elizabeth Diaz and Jonathon North, Ehlers & Associates. ADOPT AGENDA A motion was made and seconded by the Council to approve the agenda as amended to consider Item B before Item A for discussion. The motion passed. 1. AGENDA ITEMS B. 2008 Utility Rate Study Jonathon North, Ehlers & Associates, presented the City Council with information regarding the sanitary sewer and water rates as found in the study completed by Ehlers & Associates. Mr. North explained what the current water fees were covering, such as salaries of employees, water purchased from Roseville, maintenance to the watermains, etc. He reported both the sanitary sewer and water utilities have had declining cash balances since 2002-03. Mr. North explained this was due to expenditure growth along with using cash for capital outlay. Councilmember Holden questioned what was included in the capital outlay. Mr. North indicated he would have to review the line items to give an exact answer on this, but it included items such as water tankers, tractor loaders and future equipment, along with water tower improvements. ARDEN HILLS CITY COUNCIL WORK SESSION - MAY 19, 2008 2 Mr. North reported that with the sanitary sewer, the trend shows revenues increasing at less than half the rate of expenditures on an annual basis. He indicated a goal of utility rates would be to maintain adequate cash balances for cash flow contingencies needs, in addition the establishment of reasonable rates for the users, along with covering the costs of water consumption. Mr. North indicated going forward the City would need $2.2 million for CIP expenditures over the next 10 years. He noted that the study included road work with construction rates inflating 30/0 annually with operating costs inflating 50/0 annually. Discussion ensued regarding the utility rate study. Mayor Harpstead questioned the inflation assumptions with the construction rate lower than the operating inflation rate. He indicated it was his understanding that construction rates were higher than operating expenses, due to material costs at this time. Elizabeth Diaz, Ehlers & Associates, interjected stating these numbers were fairly conservative estimates on construction costs noting they may be a tad higher but may balance out. Mayor Harpstead asked if revenue inflation was included in these estimates for reasonable price Increases. Ms. Diaz stated several factors were included in the model, the first being the operating revenue with the second being all the other revenues. She indicated this study was on the conservative side of things, by withholding the interest revenue to structure the rates in order to provide for cash flow, cash reserves and capital improvements. Councilmember Holden noted 2007 was a drought year and asked if this was a good year from which to pull usage rates. Ms. Diaz noted 2004 and 2007 were both drought years. She indicated, however, that her firm based their numbers on the 2007 usage levels, which may be higher than past years. Mayor Harpstead questioned what would happen to the analysis if the citizens greatly reduced their consumption of water. Ms. Diaz stated there were assumptions attached to the model, one being a 1 00/0 decrease in water usage, indicating this would correlate to a $40,000-50,000 decrease in revenues. Mr. North added that the assumptions may be off, but give a general roadmap for the future. He continued with the Utility Rate Study explaining three different options for the residential rates. Mr. North indicated Option I was status quo, with Options II and III including rate tiering. Mr. North indicated with Option I there was a need for rate increases in 2009. He stated the water side would be increased 60/0 with the sewer usage rates going up 180/0 annually. Mr. North reviewed the quarterly water charges for 2008 with the Council noting how these rates would change with the proposed rate increases. ARDEN HILLS CITY COUNCIL WORK SESSION - MAY 19, 2008 3 Mr. North explained with Option II, the base fee scale would cover the first 10,000 gallons of usage with a quarterly meter fee of $32.00. He stated this would differ from Option I in that any usage over 10,000 gallons would be tiered. Mr. North stated any usage from 10,000-35,000 gallons would be charged at a rate of$2.73 per 1,000 gallons, with any usage over 35,000 gallons being charged at a rate of $4.78 per 1,000 gallons. He noted the tiering would promote conservation while also having the larger users assume a larger percentage of the costs for the system. Mr. North indicated with Option II, the residential sewer fees would continue to pay a meter charge of $70.50 per quarter as a base sewer charge for the first 15,000 gallons. of water. He noted after this amount, the resident would be charged $3.75 per 1,000 gallons. Mayor Harpstead questioned if the current utility billing system could handle this type of billing without incurring major administrative expenses. Finance Director Sue Iverson indicated she was not sure how much the programming charge would be, but the system could handle this type of billing. Mr. North reported that Option III was similar to Option II, without having the all or nothing fee for the first 10,000 gallons. He further explained that this rate structure would have a residential meter fee of $9.00 per quarter with the tiering rates starting at $1.50 per gallon for 0-15,000 gallons. Mr. North indicated Tier II would cover gallons 15,000-35,000 at a rate of $3.25 per 1,000 gallons, with Tier III charging $4.78 per gallon for anything over 35,000 gallons. He explained the residential sewer fees would pay a meter charge of $50 per quarter, or the senior rate of$25 per quarter along with $3.55 per 1,000 gallons. Mr. North further reviewed the Options with the Council explaining how the three options would affect senior water/sewer users. He noted the senior discount could be eliminated as these users would be on the low end for usage and would only be charged for actual use. Mr. North highlighted the goals of the rate increases to achieve some cash balances for cash flow contingency purposes. He noted for all the options, the sewer cash position was to increase to a range of$1.3 million by 2022 providing a cushion for any unforeseen expenditures. Mr. North noted the analysis proves the City should consider water and sewer increases for 2009 in order to meet its desired goals. He indicated Options II and III best met the objectives for charging users for actual usage, encouraging conservation along with better rate structures which both the DNR and other metropolitan cities see as positive. Discussion ensued regarding the future of water expenses in Arden Hills and how the purchasing of water from Roseville factors in. The Council also discussed why the City's sewer rates were higher than neighboring communities and that the past percentage increases were not covering the capital outlay expenses. Councilmember Holden questioned why the City does not charge area fees for development and if neighboring cities were. ARDEN HILLS CITY COUNCIL WORK SESSION - MAY 19, 2008 4 Ms. Diaz explained that for the water and sewer extended to new areas, a percentage of the capital cost could be recovered from the developer. Mayor Harpstead questioned if the proposed bonding in the analysis was linked to any capital expenditures. Ms. Diaz stated these bonds were tied to capital expenditures. She noted this would alleviate the need for the accumulated cash flow to cover all major expenses completely but, rather, use a portion from cash flow and the rest from bonding. Councilmember Holden stated she liked the structured options, but did not like the toll it would take the first year and wondered if this increase could be spread out more evenly over several years as this would be a 20% increase the first year. Mayor Harpstead questioned the cash flow recovery chart stating the sewer rate is clearly misaligned at this time with growing expenditures. He indicated that from this chart it appears that in 2011 the cash balance in the water fund would turn around if the proposed rate structure were assumed. Mayor Harpstead reviewed the recommendations from Ehlers & Associates noting the City needed to switch the current billing to.tiers to promote conservation and begin a new fee structure in 2009. Mayor Harpstead questioned what percentage of revenue was collected from meter charges versus the rate. Ms. Diaz indicated usage fees were 690/0 with 31 % of revenues collected from meter charges. Mayor Harpstead indicated that the Council would now need to provide feedback, requesting additional information if needed to reach the City's desired goals. Councilmember McClung questioned what figures went into the assumptions. Finance Director Sue Iverson explained how these numbers were determined adding which capital outlays were projected for the near future, such as water tower painting. She stated these numbers were realistic estimates based on past expenses. Councilmember McClung asked if the projected rate structures would reach the desired goals by 2022 with a 500/0 cash flow. Interim City Administrator Willis stated the I5-year goal could be reached with the proposed _ changes but that ongoing repair would be needed even after this time. Councilmember Grant stated this would be an ongoing process and the financials would evolve with new proposed projects. He stated a policy could be set but that the actual may turn out better or worse depending on the capital outlays. Councilmember Grant suggested that a regular review of the rates be set each year to see if the Council was achieving the desired outcomes. He added that he would be most in favor of Option II, if a rate change were made. ARDEN HILLS CITY COUNCIL WORK SESSION - MAY 19, 2008 5 Mayor Harpstead agreed stating that an adjustment of rates would realign the City with its prospective goals but would need regular reviews. Councilmember Holden stated it would be nice for the City to maintain a positive cash flow with regard to the utility rates. She wasn't in favor of future bonding and indicated she was most in favor with Option II as well. Councilmember Holmes indicated she was leaning towards Option III because it affords the seniors a benefit while placing all residents on a level playing field. Mayor Harpstead was in agreement stating he was in favor with Option III because in a fully built City there was a baseline volume of consumption that could be modeled around. He stated there should be a stable demand in consumption. Councilmember McClung indicated he was in favor of Option II as the City did have a mature population, which would be turning over in the future. Finance Director Sue Iverson stated the benefit to Option II over Option III was that the City was given more insurance during a wet year with the base meter fees. Councilmember Grant noted a comparison to neighboring communities water/sewer rates would be helpful in explaining Option II as this information is passed along to the residents. Mayor Harpstead indicated it was the consensus of the City Council to direct staff to prepare proposals on Option II, including future SAC and WAC fees, while trying to lessen the rate increase impact of the first year. A. TCAAP FinaDcials Stacie Kvilvang, Ehlers & Associates, reported the Council last discussed the TCAAP financials in October of 2007. She stated she would review the numbers again pointing out which have changed since that time and what the future steps are to keep the process moving forward. Ms. K vilvang handed out a hardcopy to each of the Councilmembers of the sources and uses they reviewed last october, stating this would be collected after tonight's review. She further reviewed the development program with the Council and indicated that after the October meeting the Council was interested in a reduced density at this site. Ms. K vilvang reported the density was reduced by 200/0 in residential units and commercial development. She stated there would now be 1,750 residential units with 2.2 million square feet of commercial space. Ms. K vilvang indicated this would bring in approximately 3,400 new residents. Discussion ensued among the Councilmembers regarding the TCAAP financials, the breakdown of land usage and land values. Councilmember Holden questioned what the average home price would be within this new development. ARDEN HILLS CITY COUNCIL WORK SESSION - MAY 19, 2008 6 Ms. Kvilvang stated the average would be $300,000, noting some homes would be above this price point, while others would be below. She noted this number will continue to be reviewed through this process. Councilmember McClung asked how the land values were established. Ms. Kvilvang stated Ryan's assumptions were reviewed and an inflation factor was added over time to phase the sales of the project until completed. She explained that the land values would be changing based upon review of the Maxfield study and how special assessments were going to be addressed. Additional discussion was held on the line items and how the numbers were determined. Ms. Kvilvang indicated the numbers were a starting point and that they would be adjusted going forward when further estimates are received. She stated these numbers could also be changed during the development process based on the developer and what fees they assume. Councilmember Holmes asked why Ryan Construction would charge a 60/0 fee for the development. Ms. Kvilvang explained this was to cover their administrative expense over the 10-15 years of developing this site. She noted this was a standard fee to help them cover their expenses while developing such a large land area. Ms. Kvilvang stated she has now refined the numbers with Ryan Construction stating a big change was to the infrastructure costs. She stated that the original $35 million cost was reviewed by Ryan, the City and the engineers and was refined to $28 million. Ms. K vilvang handed out a revised infrastructure expense breakdown to the Council and noted the roadways were now phased and color coded within the development. Mayor Harpstead stated the $28 million does not take into consideration any neighborhood parks or civic buildings. This number would cover roadways, sewer and water. Councilmember Holmes expressed concern about the flow of traffic in the higher density areas and asked if this has been considered. Mayor Harpstead ran through the traffic flow with Councilmember Holmes stating he was in favor of the new proposed roadway but did not want it to affect the property values. Ms. Kvilvang noted after reviewing this with Ryan Construction they indicated they would stay with the 1,750 units of residential homes at this time, but would like to adjust the commercial space to 2.7 million square feet from the proposed 2.2 million square feet. Councilmember McClung stated he would like to see this mapped out to see the visual difference in commercial density before this was approved. ARDEN HILLS CITY COUNCIL WORK SESSION - MAY 19, 2008 7 Mayor Harpstead agreed stating he would like to see how this additional square footage was captured for the development along with what type of tenants/retail uses would be invited into the neighborhood. Ms. Kvilvang stated the developer was concerned if tax increment financing (TIF) was available for this project and that they would be more comfortable going forward with this assurance. She understood that Ryan Construction would have to prove a need for the TIF before City approval. Councilmember Holden stated this was never a guarantee and that grants should be investigated as well" Ms. Kvilvang stated that they will be seeking grants, but to remember that with grants additional requirements for the development may be added, such as low-income housing, higher density, etc. She explained there is a program through Fannie Mae for local governments and can provide up to $50 million. Ms. Kvilvang indicated Fannie Mae borrows funds to cities for development purposes where 500/0 of the development was for housing purposes. She stated this may assist the City in the economic burden of the development, lowering the debt need. Ms. Kvilvang noted Fannie Mae would have an interest rate today of roughly 5% and requires the City to provide some its General Obligation and TIF. She explained the repayment plan would be part of the master development agreement with the developer being responsible for repayment. Councilmember Holmes questioned who was responsible for the loan payment. Ms. Kvilvang explained that the financing would be passed along to the developer and if they did not make a payment, the City could foreclose on the land. She stated this would all be disclosed and fully explained in the master development agreement. Mayor Harpstead asked if the Fannie Mae dollars had to be borrowed up front or if they could be pursued during the development process. Ms. Kvilvang stated the funds could be borrowed at any time during the process, meaning if the funds were not needed in the beginning, they could be pursued to ease the financial strain at a later date. Mayor Harpstead reiterated that it was the responsibility of the Council to assure this was a financially viable development before going forward with this project. Councilmember McClung stated the original RFP stated the developer would have to be able to do everything from the beginning to the end in terms of the financial viability. Councilmember Grant stated he would support assisting the developer if the development is proven to be financially viable. He indicated the City should not be losing their own "shirt" in the process. Ms. Kvilvang stated that the City and RRLD had a conference call with the GSA on Tuesday where the timeline was discussed with the transfer completed in September 2009. She indicated Bill McDonald was hoping this would be earlier. Ms. K viIvang suggested a letter be drafted to ARDEN HILLS CITY COUNCIL WORK SESSION - MAY 19, 2008 8 Mr. McDonald reaffirming the City's commitment to this development, signed by Ryan Construction as well. She explained that the City has to have the development plan complete before the transfer can take place~ Mayor Harpstead indicated he was in favor of signing the letter as this was in alignment with all past Council discussions and was the projected timeline for the property transfer. Ms. Kvilvang stated she would be back before the Council on June 12, 2008 with updated numbers. Councilmember Holmes questioned if this was a previously scheduled work session date or if those meeting dates still needed to be established. Mayor Harpstead encouraged the new City Administrator to work with Ms. K vilvang to coordinate a meeting schedule and report back to the Council. c. Complete the Comprehensive Plan Review City Planner James Lehnhoff reviewed the updated Comprehensive Plan with the Council noting the past comments have been included. He noted he was still working on a few more additions. Councilmember McClung questioned if the Planning Commission was able to review this document a second time. City Planner Lehnhoff stated a work session was held with the Planning Commission on May 13, 2008 where the Council's revisions were included. He noted they had several suggestions, which will be pointed out as the document is discussed. City Planner Lehnhoff indicated his goal for this evening was to review Chapters 8, 11 and 12- 14. He stated he' would like to finish these chapters while reviewing several items to include additional information gained since the past discussion. City Planner Lehnhoff began with Chapter 8 on Economic Development. He stated this was a short and concise chapter not required by Met Council but would be included for the City of Arden Hills. Discussion ensued regarding the Comprehensive Plan. Councilmember Holmes questioned the importance of the language on Page 49, regarding gateway signs as this was a controversial issue. Mayor Harpstead agreed and asked that the language be removed. Councilmember Holden asked if the implementation should be held to just Bethel and Northwestern Colleges, stating this should be more general. ARDEN HILLS CITY COUNCIL WORK SESSION - MAY 19, 2008 9 Mayor Harpstead indicated there was an educational component stating that is why they were singled out. He suggested this language read to encourage communication between businesses and educational institutions such as Bethel and Northwestern Colleges. Councilmember Holmes asked if the word ""collaboration" could be used in place of the word "'communication". She stated an additional bullet could be added for the faith community. Mayor Harpstead reworded the language to read: "the collaboration and communication between businesses and educational institutions; such as Bethel and Northwestern Colleges, and other significant hiring establishments." Discussion ensued on the importance of existing businesses and it was agreed that the City must work to promote business retention and expansion based on the current economic base. Councilmember McClung suggested the numerous sentences addressing the importance of the TCAAP development be removed. City Planner Lehnhoff stated the repetitions could be removed, but this was done in such a manner to reiterate the importance and the strategy behind it. City Planner Lehnhoff then directed the Council's attention to the Transportation Chapter - Chapter 11. Mayor Harpstead questioned why an area was shaded and if the Council should offer further clarification. City Planner Lehnhoff stated he needed to greater define the level of service in this paragraph and that he would fill this in. Councilmember Holden stated she was not in favor of additional traffic flow from the City of New Brighton near the railroad bridge over I-35W depending on the changes to their Comprehensive Plan. Mayor Harpstead and Councilmember Grant agreed. City Planner Lehnhoff stated he would further investigate this item and add language as suggested by Councilmember Holden. He indicated there were additional pages of technical data that will be an appendix. Mayor Harpstead asked that Snelling Avenue/Highway 51 be added to the roadways needing improvement. City Planner Lehnhoff stated he would investigate that and make sure to add this roadway to the document if it warranted by the data. ARDEN HILLS CITY COUNCIL WORK SESSION - MAY 19, 2008 10 Councilmember Holmes questioned if additional language should be added stating the City is pursuing additional bus routes through the City. She indicated with the price of gas rising, this should be encouraged. City Planner Lehnhoff stated he would work on this as welL Councilmember McClung questioned if Section 11.3.5 ~ Long Term Transportation Planning, needed to be included as it was 50-100 year planning and this was only a 20-year document. Mayor Harpstead and Councilmember Holden concurred. Mayor Harpstead questioned if the language regarding partners in transportation could be expanded to encourage collaboration in implementation. He stated he felt a piece was missing at this time. City Planner Lehnhoff agreed stating he would work some additional language into this item. City Planner Lehnhoff proceeded to Chapter 12 ~ Energy Conservation, stating this chapter was not required but encouraged. Councilmember Holmes encouraged local businesses to begin recycling as an effort of conservation. City Planner Lehnhoff stated at this time the City has no commercial requirements for recycling, but only offers residential recycling at this time. Councilmember Holden asked that the City further encourage "Green Development" by setting a percentage of expected construction. Mayor Harpstead suggested this section read, to include the use of sustainable design practices in the construction and operation of new development. The Council agreed. Councilmember Holmes asked that the second paragraph on Page 94 be deleted. She stated this was completely irrelevant. Mayor Harpstead agreed, indicating this paragraph may not apply at this time, but the City was affected by environmental factors. He stated energy production capacity may be limited, which would affect the City as welL Councilmember McClung questioned if 12.4 on Carbon was necessary and asked that the comment on traffic in Arden Hills be altered as the City does not have the ability to regulate the traffic flow on the Interstates. Mayor Harpstead agreed stating this could read: "by default the traffic runs through Arden Hills". He indicated he would be in favor of lowering the speed on Trunk Highway 10 as an environmental concern. ARDEN HILLS CITY COUNCIL WORK SESSION - MAY 19,2008 11 Councilmember Holden suggested this item read although City has no ability, we would like to work and collaborate with other entities to work towards having a say. Councilmember McClung asked that the reference to hydrogen buses be changed to fuel- efficient hybrid buses. Councilmember Holmes wanted the City of Arden Hills to encourage or support other agencies to provide light rail. Mayor Harpstead noted on Implementation Strategies he commented that the fourth bullet read: "encourage the use of impervious surfaces". He noted he would like a bullet added that AHA TS consider alternative energy sources on their facility, such as a windmill. City Planner Lehnhoff now directed the Council to Chapter 13. He noted additional sections will be added to this Chapter with regard to water management, storm water plans, etc. Mayor Harpstead suggested that the word "myriad" be replaced with another word to describe the services provided by the City of Arden Hills. City Planner Lehnhoff then discussed Chapter 5 regarding TCAAP. He asked for further comments from the Council on this area. Mayor Harpstead stated he was in favor of the revisions as they read. City Planner Lehnhoff directed the Council's attention to Section 7.2 related to institutional housing. He stated the chart would be adjusted as he has more information. City Planner Lehnhoff reviewed the numbers stating he would make the necessary adjustments to the document. City Planner Lehnhoff explained the process going forward with this document. He indicated the Planning Commission would review this one more time, with a final public open house style meeting scheduled for sometime mid-June. City Planner Lehnhoff explained a public hearing would then be held in July, along with going to adjacent communities for comment. Mayor Harpstead thanked City Planner Lehnhoff for all of his work on this document stating the Plan was coming along very nicely. The Council agreed. D. 2009 Bud2et Calendar Finance Director Sue Iverson reported she was before the Council with a proposed 2009 Budget Calendar. She stated the Council would need to adopt a preliminary budget and levy to certify to the County by September 15th. Finance Director Iverson indicated once this amount was set it could be decreased but not increased. She noted the final budget and levy would then be adopted by the City Council and certified to the County by December each year. II ARDEN HILLS CITY COUNCIL WORK SESSION - MAY 19, 2008 12 Finance Director Iverson explained in order to start the budget process, a budget calendar for 2009 would need to be approved by Council. She indicated August 4th was a proposed work session meeting date to further discuss the budget. Mayor Harpstead was in agreement with this date and asked that staff coordinate the date with Ms. K vilvang so as not to interfere with a TCAAP work session. Discussion ensued regarding the proposed 2009 Budget Calendar. Councilmember McClung stated he was in favor of holding the budget discussion in August at a separate meeting. Councilmember Holden stated she would not be present ifheld on August 4th. Mayor Harpstead suggested holding this discussion August 11 th at 5:00 p.m. before the regular Council meeting. It was the consensus of the City Council to direct staff to propose an estimated meeting time the beginning of August, with a second meeting scheduled for the end of August before forwarding the budget to the County for certification. E. 2009 Preliminary Bud2et Discussion Finance Director Sue Iverson reported there were several changes with regard to levy limits for 2009. She explained the City is not under any legislative restrictions with regard to establishing a levy. Finance Director Iverson indicated the levy increased by 4.6% in 2008 but could only increase 3.9% or the implicit price deflator in 2009. Finance Director Iverson reiterated the fact that Arden Hills receives no LGA funds. She stated the City would be hampered as to how much the levy can increase. Finance Director Iverson reviewed the preliminary factors that would affect the 2009 budget with the Council. She stated there was a need for reserve funds, park funding and personnel benefits. Finance Director Iverson stated the next step would be to have each department put together their budget to see what the proposed expenses will be for 2009. She indicated after that time, priorities could be set. Discussion ensued regarding preliminary 2009 budget, the health care implications for employees and additional projected department budget increases. Mayor Harpstead requested a summary from each department explaining the priorities for 2009. He indicated this would assist the Council in understanding where funds were needed, even if not assigned a dollar value at this time. Further discussion was held between the Councilmembers about a City-wide survey and if it would be completed in 2008. · ARDEN HILLS CITY COUNCIL WORK SESSION - MAY 19, 2008 13 Mayor Harpstead stated he felt the information gathered from this survey would be valuable and that the funds were already set aside to complete this project. He indicated any surplus funds could be placed in the capital equipment budget. Council directed staff to check on the survey status and what costs have been incurred to date. Mayor Harpstead thanked Finance Director Iverson for the report. 2. COUNCIL COMMENTS AND REQUESTS Councilmember Holden questioned if a town hall meeting was going to be held for 2008. Mayor Harpstead stated this has been brought up, but no plans have been made to date. Councilmember Holden stated the intersection of Highways I 0 and 96 is extremely dangerous and asked if amber warning lights could be placed here by MnDOT. Mayor Harpstead indicated he asked Public Works Director Hoag to investigate this last week and is waiting to hear back. Councilmember Holden questioned if City Administrator Moorse would be addressing the personnel organizational issues within this budget year. Mayor Harpstead stated this was Mr. Moorse's first day on the job was today and that this may not fall into the 2008 budget cycle. City Administrator Ron Moorse noted some of the organization issues could be resolved fairly quickly while others would take time. Mayor Harpstead suggested the City Administrator set his priorities for the remainder of 2008 for time and available resources. He explained at that time, recommendations could be made based on his thorough evaluation of the situation. City Administrator Ron Moorse agreed stating this would allow him time to meet with each department to see the needs and skill sets for each open staff position. Councilmember Holmes questioned if a work session should be held to discuss the history of these issues with the new City Administrator to ensure he is hearing all voices involved in these Issues. City Administrator Moorse stated he has been getting up to speed with Interim City Administrator Willis, along with each individual department head. Councilmember McClung questioned if the Holiday Inn ownership was transferred to Rob Davison. He indicated one of the stipulations was that when the college took over, they would maintain the grass. ARDEN HILLS CITY COUNCIL WORK SESSION - MAY 19, 2008 14 Mayor Harpstead stated this has been transferred and he would look into this matter. Councilmember McClung indicated he received a phone call that a resident was creating a mini- student residence hall. Interim City Administrator Willis stated he received an email regarding this issue and is investigating the matter. Councilmember McClung questioned if staff had heard any update on the T-Mobile tower, as he sees this as' a source of revenue for the City. Interim City Administrator Willis indicated he has been working on this issue. The City of Arden Hills currently owns the cell tower and maintains it as well. He explained T -Mobile proposed building their own tower and then handing it over to the City for maintenance. Interim City Administrator Willis noted at this time the zoning code may need to be revised because the City is proposing T -Mobile build a larger tower to accommodate future growth. He indicated the entire contract could be simplified if the City was not required to own the tower, which was the direction the City has chosen to go at this time. Interim City Administrator Willis noted the zoning code was scheduled to be amended at the June Planning Commission meeting. Councilmember McClung asked for an update on Chesapeake. Interim City Administrator Willis stated this plat would be before the Council next Thursday. He noted they were close to having a tenant, but all have fallen through to date. Councilmember Grant reported the Fire Station was approached to purchase a "demonstration" truck at a lower expense than new. He noted the Fire Chief has looked at the truck and will be further discussing this on Wednesday, May 21 st. Councilmember Grant indicated he will report back to the Council as to their proposal as EP A standards continue to change on these vehicles. Mayor Harpstead adjo ed the City Coun?il Work Session meeti