HomeMy WebLinkAbout04-20-09-WS Its.—
EN HILLS
Approved: July 13, 2009
CITY OF ARDEN HILLS, MINNESOTA
CITY COUNCIL WORK SESSION MEETING
APRIL 20, 2009
5:00 P.M. - ARDEN HILLS CITY COUNCIL CHAMBERS
CALL TO ORDER/ROLL CALL
Pursuant to due call and notice thereof, Councilmember McClung called to
order the City Council Work Session meeting at 5:00 p.m.
Present: Mayor Stan Harpstead (arrived at 5:50 p.m.); Council Members
David Grant, Brenda Holden, Fran Holmes, and Dave McClung.
Absent: None.
Also present: City Administrator Ron Moorse; Public Works Director
Gregory Hoag; Finance Director Sue Iverson; Community Development
Director James Lehnhoff; Fire Chief Tim Boehlke; and Stacie Kvilvang,
Ehlers & Associates.
ADOPT AGENDA
Councilmember Holden requested that Item ID be removed from the agenda as
there was never Council consensus to bring this item to a work session for
discussion.
MOTION: Councilmember Holden moved and Councilmember Grant
seconded a motion to remove Item 1 D from the agenda.
Further Discussion:
Councilmember Holmes stated that she would like this item to remain on the
agenda and felt it was an important item to discuss.
ARDEN HILLS CITY COUNCIL WORK SESSION-APRIL 20, 2009 2
City Administrator Moorse explained that this item was brought forward based
on discussions held at a previous work session regarding the additional options for
the assessment policy.
Councilmember Grant questioned if there was Council consensus to proceed with
this item.
City Administrator Moorse stated he thought there was a consensus at that
meeting, but wasn't certain.
Councilmember McClung indicated he remembers the discussion of this item and
that he was in favor of the current policy in place.
Councilmember Holmes stated she would like this item discussed before next
week when the Council will need to vote on an assessment.
The motion carried (3-1 Holmes).
Councilmember Holden suggested Item IF be added to the agenda to discuss
whether or not the Council was in favor of proceeding with a discussion on the
Assessment Policy.
Councilmember Grant clarified that this was merely a discussion to gain
consensus on item and if it should be brought back for future discussion.
Councilmember Holden stated this was the case.
Hearing no objections, Item IF a Discussion on the Assessment Policy was added
to the agenda.
1. AGENDA ITEMS
A. Housing Improvement Areas Concept Discussion
Community Development Director Lehnhoff presented the City Council with
information on the Housing Improvement Areas (HIA) Concept plan. He reviewed
the history of this concept explaining that the HIA assisted financially with housing
projects through special assessments on the property taxes.
ARDEN HILLS CITY COUNCIL WORK SESSION-APRIL 20, 2009 3
Community Development Director Lehnhoff noted that properties within an HIA
had to have a petition signed by 25% of the homeowners. He indicated that a
public hearing would need to be held if this were to proceed with a development
and that the financing could be bonded or completed with City funds.
Community Development Director Lehnhoff explained that the specific idea
before the Council tonight was regarding the Arden Hills North Homes
Association, which was a 140 townhome association. He stated a letter was
included from the association indicating why they were exploring this option.
Community Development Director Lehnhoff indicated that the Council did not
need to vote on this item but rather provide feedback on this issue and if it has
merit to proceed. He stated the research he has completed thus far there is little
risk to the City but would allow the association to re-side their units while paying
back the expense over a longer period of time.
Community Development Director Lehnhoff explained he received a question
from the Mayor asking why HIA's have not been used in the past. He reviewed a
handout with the Council stating how NIA's have been used.
Councilmember Holmes questioned how the City would not be liable if the loan
were not repaid.
Stacie Kvilvang, Ehlers & Associates stated the loan would be paid back as it was
built into the structure of the financing, within the special assessments.
Councilmember McClung asked that the risk to the City be further explained,
even though it was projected to be small.
Finance Director Iverson explained the risk to the City would increase if the
townhome units were to become vacant and the taxes and assessments would
become delinquent.
Discussion ensued regarding the financing structure of the HIA loans.
Councilmember Holden questioned why a homeowner would pursue an HIA loan
over a home equity loan. -
Finance Director Iverson stated home equity loans were an option for
homeowners to avoid paying a special assessment over several years.
ARDEN HILLS CITY COUNCIL WORK SESSION-APRIL 20, 2009 4
Community Development Director Lehnhoff explained that homeowners could
opt out of the HIA by paying the special assessments up front.
Councilmember Grant questioned the expense to each unit for the new siding,
along with the expense to paint each unit.
Ms. Kvilvang stated the expense was estimated to be roughly $16,000 per unit,
according to the association.
Jim Pinckney, townhome Board member, explained he did not have the painting
expense estimates with him. Mr. Pinckney apologized for not having the painting
estimates with him and thought the numbers were roughly $2,000-4,000 per four-
plex every five years.
Councilmember Holden questioned if the association has redone the roofs or if
they would need assistance on that as well. She expressed concern on how the
association would be able to set funds aside to meet their future expenses if paying
for assessments.
Elwood Caldwell, homeowners association, indicated they were completed within
the last five years.
Ms. Kvilvang explained that the dues within the association would have to be
increased and set aside in a reserve fund for large future expenses, such as parking
lots, sidewalks, etc.
Councilmember McClung questioned if a formal study on future expenditures
would be brought to the Council with their request.
Ms. Kvilvang stated she would recommend this be part of the request along with
forwarding the information to the homeowners. She explained that this was a grass
roots initiative and took a great deal of time to gather the proper information for
this procedure.
Councilmember Grant stated he felt the painting estimates would be crucial
information to pass along to the homeowners and Council as this item proceeds.
Councilmember McClung agreed stating he would have liked to see the
association complete more work up front before this was brought to the Council.
ARDEN HILLS CITY COUNCIL WORK SESSION-APRIL 20, 2009 5
He indicated the Council would now need to determine if they were interested in
creating an HIA, and if so, the association needs to bring the project forward.
Councilmember McClung stated he was comfortable with the proposal as long as
it encouraged the association to be financially responsible for the expenditure.
Councilmember Grant indicated he did not want to see the dues within this
association driven up so high that the units could not keep up, given the state of the
economy.
Community Development Director Lehnhoff stated this item was brought before
Council to gain feedback before the association continued with the lengthy
information gathering process. He indicated they are aware of the work involved in
the study before this item would be approved.
Councilmember Grant stated he was not aware the units were in poor condition.
Mr. Pinckney explained the units are not in poor disrepair but that the
homeowners were concerned with paying for another painting when residing the
units would benefit the units overall.
Councilmember Holden questioned how the 25% association vote could be
increased to 50% before this item could proceed.
Community Development Director Lehnhoff suggested the Council make a
recommendation based on consensus, but that a policy would need to be created to
address future HIA's.
Councilmember Holden asked if she could receive the information on the age of
the housing in the association.
Community Development Director Lehnhoff stated he might have this
information.
Councilmember Holmes questioned how the proposed HIA would be financed.
Community Development Director Lehnhoff stated this could be financed -
through City funds or bonds.
ARDEN HILLS CITY COUNCIL WORK SESSION-APRIL 20, 2009 6
Councilmember Holmes indicated she would be in favor of the overall concept
moving forward.
Councilmember Grant stated that he was not opposed to the HIA but wanted to
make sure it made sense and that the association dues were not raised too high that
it devalued the units.
Councilmember Holden explained she was in favor of the broad concept of the
HIA.
Councilmember McClung stated he was in favor of moving forward with this --
item as well, showing that it was workable for the association.
It was the consensus of the City Council to direct staff to proceed with this item.
B. Old City Hall RFP Update
Community Development Director Lehnhoff stated staff was looking for the
Council to reengage the community planning process and complete a draft RFP.
He indicated if this was not the Council's wishes it could be put on hold for a
specified timeframe.
Councilmember Holden stated a member on the EDC thought the Council should
be moving forward on this property.
Community Development Director Lehnhoff stated there were no specific offers
for the property at this time. He indicated the RFP would get the property out there
and would allow the City to set the qualifications.
Councilmember Grant questioned the assessed value of the property.
Community Development Director Lehnhoff stated he had the appraised value of
the land but not the assessed value.
Councilmember Holden explained she was not in favor of proceeding with the
property as there were too many other projects pending at this time.
Councilmember Holmes indicated she was not in favor of marketing the property
at this time, but that the RFP should be completed by staff to allow the property to
be ready when the time was right.
ARDEN HILLS CITY COUNCIL WORK SESSION-APRIL 20, 2009 7
Councilmember Grant stated the City would not hang on to this property forever
and that a plan does have to be drafted for the future of this site.
Councilmember McClung indicated that he was not opposed to working on the
RFP. He expressed concern given the downturn of the market and how this would
affect the price of the land.
Councilmember Holden stated she would rather see efforts put into grants to clean
the site versus an RFP.
Councilmember Grant agreed stating this would increase the value of the
property if cleaned up.
Councilmember McClung indicated the building should be taken down as well.
(Mayor Harpstead arrived at 5:50 p.m.)
Community Development Director Lehnhoff suggested he work for the next
three months to see what grants were available to remove the building. After that
time, the RFP could be readdressed.
Councilmember Holden stated she would be in favor of this suggestion.
Mayor Harpstead indicated he would be in favor of having the RFP ready and
prepared to allow the City the most flexibility. He explained that pursuing the
grants ahead of the RFP would assist in the process.
It was the consensus of the City Council to direct staff to pursue grants to assist in
the demolition of the building with the RFP to be drafted after that time.
C. Fire CIP
Fire Chief Tim Boehlke introduced himself to the Council and reviewed the future
Fire CIP plans.
Mayor Harpstead stated this was a general presentation to inform the Council of
future expenditures proposed for the Fire Department. He questioned the history of
the capital equipment expenditures for the fire department for the past five to eight
years.
ARDEN HILLS CITY COUNCIL WORK SESSION-APRIL 20, 2009 8
Finance Director Iverson stated she could gather this information and report back
to Council.
Discussion ensued regarding the future capital expenses projected for the Fire
Department and how these expenses are shared by the City.
Councilmember Holden stated her biggest concern was with the percentages and
how they were developed.
Fire Chief Boehlke stated these percentages are to be reviewed annually based on
the calls and responses of the Fire Department.
Councilmember Holden questioned when the needs assessment study would be
complete.
Fire Chief Boehlke explained that this was in draft form and went to the Board for
discussion a few meetings back. He indicated he hoped this would be ready at the
next Board meeting.
Councilmember McClung indicated that the needs assessment study was
discussed to review the needs across the entire department. He explained that this
was broken down by station in the capital budget and City. The City of Arden
Hills was responsible for Station #1. Councilmember McClung explained that a
study on the condition of Fire Station #1 was never completed.
Mayor Harpstead stated there was another study discussing the response time of
the fire department and how the call time can be reduced. He indicated this
impacts strategic issues of the fire department.
Mayor Harpstead explained that the historic staffing model may need to be
readjusted with the department based on this information and the fact that this is a
volunteer department. He added that a new station may not be needed in order to
meet the response times decided as an objective but would require a new staffing
model, which would trade capital for operational expenses.
Deputy Chief Ralph Adair indicated the restructuring of the staff would greatly -
impact the capital budget. He stated this was being reviewed at this time and was
difficult because it involved three cities, all with varying needs. Mr. Adair
ARDEN HILLS CITY COUNCIL WORK SESSION-APRIL 20, 2009 9
explained the direction at this time was to staff one station, which would reduce the
need for capital put into Station #1, along with equipment savings.
Mayor Harpstead stated that joint powers agreements could be explored with
North Oaks for the extreme northeast areas of the coverage.
Mr. Adair stated the staffing model that is being explored would allow the part
time employees to know when they are going to work and when they are going to
be off.
Mayor Harpstead indicated the CIP was based upon the current operational model
of the Lake Johanna Fire Department and not the proposed staffing model
Councilmember Holden questioned the department's philosophy on the CIP and
which items were needs versus wants.
Fire Chief Boehlke indicated the rising costs for items are greatly affecting the
budget along with staff cycling in and out of the department. He explained capital
budget items are needs that exceed $5,000. Fire Chief Boehlke stated that items
were not spent unless there was a need, explaining that items slide from year to
year until needed.
Councilmember Holden asked if fire department building meeting rooms could be
open for public use.
Fire Chief Boehlke stated this has been tried in the past but has been a concern
with how to keep the residents from getting into spaces they don't belong. He
stated future improvements could be done in such a way to make this possible.
Mayor Harpstead thanked the Fire Chief and Deputy Fire Chief for their time and
information.
E. Lift Station #7
Public Works Director Hoag presented the City Council with information on Lift
Station #7. He reviewed answers to the questions asked by Council last week.
Public Works Director Hoag noted he spoke with the City Attorney regarding this
issues with the lift station and that it was his opinion the City could move forward
with the purchase and repair of the pumps while enforcing the Ordinance.
ARDEN HILLS CITY COUNCIL WORK SESSION-APRIL 20, 2009 10
Councilmember Holden questioned when the inline grinder would be installed.
Public Works Director Hoag stated he spoke with the pump manufacturer and
that an inline grinder may not be needed, but that it would be in the City's best
interests to pursue installation in the near future. He indicated that the pump
manufacturer believes the 10 horsepower pumps alone may solve the problem.
Councilmember Grant questioned if this station was going to cause additional
problems with neighboring lift stations if the problem was not sufficiently
corrected.
Public Works Director Hoag indicated that this station pumps directly to a large
main for the Met Council. He stated an inline grinder could be installed at the
existing lift station but that this was not the preferred option that staff is pursuing.
Mayor Harpstead questioned if the inline grinder could be installed as described
with the understanding that Presbyterian Homes has purchased the grinder and will
be relocated with any additions to their property.
Public Works Director Hoag stated this would be his recommendation.
Mayor Harpstead asked if the expense for the pump and grinder could be worked
into Presbyterian Homes' assessments.
Public Works Director Hoag indicated that this was his recommendation based on
the City's Ordinance.
City Administrator Moorse indicated the City had the authority to state the
material they are discharging was questionable and that the proposed pumps and
grinder would resolve the concerns.
Mayor Harpstead indicated the City would need to know the expense of the lift
station because the expense would need to be assessed. He explained that he
would like Presbyterian Homes to be made aware of how the City was going to
proceed, and that the City would prefer that they build it into their building.
Finance Director Iverson indicated the City would have to send them a notice by
certified mail. She explained if they chose to take no action then the City would
have the authority to proceed.
ARDEN HILLS CITY COUNCIL WORK SESSION-APRIL 20, 2009 11
Mayor Harpstead explained that he did not want this action to be delayed by years
based on their building plans. He stated that the certified letter sent to Presbyterian
Homes should clearly define what was expected of them in the future, if they were
to bring a PUD forward.
Councilmember Holmes questioned if an administrative fee could be added onto
the assessment.
Finance Director Iverson stated she would have to review the statute.
Mayor Harpstead indicated that the assessment should include all installation
fees. He stated that Presbyterian Homes created this problem and should be the
sole party responsible for fixing it.
Finance Director Iverson explained that all expenses and installation fees would
be passed along to Presbyterian Homes through the assessment.
Public Works Director Hoag indicated this lift station has been a mess for a
number of years.
It was the consensus of the City Council to direct staff to proceed with a certified
letter to Presbyterian Homes stating the intent of the City for Lift Station #7.
F. Discussion on the Assessment Policy
Councilmember Holden indicated this item was pulled off the agenda as there was
no consensus to bring it forward. She was not in favor of discussing the
Assessment Policy at this time.
Mayor Harpstead stated he was not in favor of changing the current policy but
may be interested in recognizing 2009 property values over $180,000. He
indicated he has concern with the legal obligation the City has to make sure the
residents are assessed equally based on the property value.
Councilmember Holden stated this would directly change the current assessment
policy. -
Councilmember Grant explained the policy was created as a result of the previous
policy having problems.
ARDEN HILLS CITY COUNCIL WORK SESSION-APRIL 20, 2009 12
change in policy and if there is a discrepancy, it should be reviewed further by
Council.
Mayor Harpstead indicated he would like staff and the City Attorney to review
how neighboring communities have handled this discrepancy.
Further discussion ensued regarding the flexibility of the assessment policy and if
this item should be brought forward for further discussion.
Councilmember Grant indicated the assessment task force wanted to maintain
consistency with the previous policies. He explained that as costs have risen the
City has concern on the math behind these policies. Councilmember Grant stated
this was a cost of construction issue and not a policy issue. He felt there was no
reason to change the policy at this time from the 50%.
Councilmember McClung indicated if there was a consensus of the Council this
item could be discussed.
Mayor Harpstead called for a consensus of the Council and if this item should
come back for further discussion.
Councilmember McClung, Councilmember Grant and Councilmember Holden
were not in favor of further discussing this item.
Councilmember Holmes and Mayor Harpstead were in favor of further
discussing the assessment policy.
It was the consensus of the City Council to not bring the Assessment Policy back
for further discussion.
2. COUNCIL COMMENTS AND REQUESTS
City Administrator Moorse stated he has received several emails from residents
whose homes are on double lots and should receive double assessments. These
homeowners are requesting to receive only one assessment.
Mayor Harpstead indicated the policy does discuss buildable lots and if a home
sits in the middle of the lot, neither lot would be buildable.
ARDEN HILLS CITY COUNCIL WORK SESSION-APRIL 20, 2009 12
• Councilmember Holmes stated she would like to review the assessment policy.
She felt changing the method of assessment would be a change in the policy and if
there is a discrepancy it should be further reviewed by the Council.
Mayor Harpstead indicated he would like staff and the City Attorney to review
how neighboring communities have handled this discrepancy.
Further discussion ensued regarding the flexibility of the assessment policy and if
this item should be brought forward for further discussion.
Councilmember Grant indicated the assessment task force wanted to maintain
consistency with the previous policies. He explained that as costs have risen the
City has concern on the math behind these policies. Councilmember Grant stated
this was a cost of construction issue and not a policy issue. He felt there was no
reason to change the policy at this time from the 50%.
Councilmember McClung indicated if there was a consensus of the Council this
item could be discussed.
• Mayor Harpstead called for a consensusof Y P the Council and if this item should
come back for further discussion.
Councilmember McClung, Councilmember Grant and Councilmember Holden
were not in favor of further discussing this item.
Councilmember Holmes and Mayor Harpstead were in favor of further
discussing the assessment policy.
It was the consensus of the City Council to not bring the Assessment Policy back
for further discussion.
2. COUNCIL COMMENTS AND REQUESTS
City Administrator Moorse stated he has received several emails from residents
whose homes are on double lots and should receive double assessments. These
homeowners are requesting to receive only one assessment.
• Mayor Harpstead indicated the policy does discuss buildable lots and if a home
sits in the middle of the lot, neither lot would be buildable.
ARDEN HILLS CITY COUNCIL WORK SESSION-APRIL 20, 2009 13
Councilmember Grant stated that if the lot were buildable it could be deferred to
the time it would be developed.
Finance Director Iverson explained that this would be greater defined within the
assessment hearings.
City Administrator Moorse indicated that the homeowners received a notice that
the project has been put out for bid and will be discussed on Monday night.
Mayor Harpstead explained that he attended a meeting with Betty McCullum
regarding the 4th Congressional District projects that are going into the high
priority transportation bill. He stated there was $16 million earmarked for
transportation over the next five years. Mayor Harpstead indicated he presented
to her the County Road H and 35W interchange for funding.
Councilmember Grant questioned if Shoreview and New Brighton were present
to speak on behalf of the City.
Mayor Harpstead indicated that Shoreview and New Brighton were not present
for support, but that Ramsey County had four projects on their priority list, with
Maplewood reinforcing the need for two of the four projects and that this did carry
some weight.
Councilmember Holden asked what the four priorities were for Ramsey County.
Mayor Harpstead explained the four priorities were Highway 36 and Rice, 694
and Rice, Highway 96 and 35E, and 694 and White Bear Lake Avenue. He stated
City Planner Beakman was present at the meeting to gain additional information on
the projects proposed for funding.
City Administrator Moorse noted he would be speaking with MnDOT and that
they were going to be sending a letter of support for the County Road H project.
He indicated he would also be speaking with the County, along with the City's of
Shoreview and Mounds View as well.
Councilmember Holden indicated she received an email and was waiting to hear -
if she was going to Washington on Wednesday. She reviewed the email with
Council.
ARDEN HILLS CITY COUNCIL WORK SESSION-APRIL 20, 2009 14
City Administrator Moorse reviewed Rick Collins' thoughts in response to the
email. He indicated the City was planning to get the group going to Washington
DC on a conference call, Tuesday morning at 7:30 a.m.
Councilmember McClung asked if the Council would be advised of what was
discussed at the conference call.
City Administrator Moorse stated the minutes from the discussion could be
forwarded to Council.
Mayor Harpstead dA City Council Work Session meeting t 6:58 p.m.
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Mayor City Administrator