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HomeMy WebLinkAbout05-10-10-R . ... . ... ..... EN HILLS'' ......... . Approved: June 14, 2010 CITY OF ARDEN HILLS,MINNESOTA REGULAR CITY COUNCIL MEETING MAY 109 2010 7:00 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 regular City Council meeting at 7:00 p.m. Present: Mayor Stan Harpstead, Council Members Fran Holmes, David Grant, Brenda Holden, and David McClung Absent: None. Also present: City Administrator Patrick Klaers; Finance Director Sue Iverson; Civil Engineer Kristine Giga; City Planner Meagan Beekman; Parks and Recreation Manager Michelle Olson; Jamie Thelen, CEO Sand Companies, Inc.; Diane Hankee, WSB & Associates; Julie Eddington, City Bond Attorney from Kennedy & Graven; Mary Ippel, Briggs & Morgan, Bond Counsel for Presbyterian Homes; and Recording Secretary, Tina Borg PLEDGE OF ALLEGIANCE Mayor Harpstead introduced the new City Administrator Patrick Klaers. 1. APPROVAL OF AGENDA Councilmember Grant requested Item 4C be pulled from the Consent Calendar and Item 7B be added to the Consent Calendar. MOTION: Councilmember Grant moved and Councilmember Holden seconded a motion to approve the meeting agenda as amended. The motion carried unanimously 5-0 . 2. PUBLIC INQUIRIES/INFORMATIONAL A. TCAAP Update ARDEN HILLS CITY COUNCIL—May 10, 2010 2 2.A. TCAAP Update (continued) City Planner Meagan Beekman stated Mr. Legare will be meeting with the Army next week to go over the draft Invitation For Bid (IFB) and if it is approved it is anticipated the City will get a copy for review the week of May 17. He also stated the IFB would include the special terms including the leasing and escrow requirements as well as the minimum bid price. The GSA plans on completing the hiring process for a marketing firm to handle advertising for the TCAAP Public Auction and once they are in place the exact dates of the second bidders' conference, which is tentatively scheduled for June 8, 9, or 10, will be set. The start date of the public auction will be based on the timing for the second bidders' conference but is anticipated to take place in the first week of July. The City Planner will be sending a copy of the draft zoning regulations for the TCAAP property to Mr. Legare to be included as an addendum to the IFB. Greg Mack, the Ramsey County Parks and Recreation Director, met with Tony Bennett, Mike Fix, and the Minnesota Pollution Control Agency (MPCA) to discuss the remediation process regarding the County park and open space requests. The Parks, Trails, and Recreation Committee reviewed the proposed TCAAP zoning regulations at the April 27 meeting. The Planning Commission continued their review at their May 5 meeting, and they anticipated holding a public hearing at their June 9, 2010, meeting to make a formal recommendation to the City Council regarding the proposed TCAAP zoning regulations. The draft zoning regulations are available for public review on the City's website. PUBLIC Mayor Harpstead opened the Public Inquiries/Informational at 7:07 p.m. Mr. Scott Scheunemann, 4075 Valentine Crest Road, Arden Hills, stated concerns about the PMP project on Valentine Crest Road. He stated he felt Valentine Crest Road was only being done as a part of this project because Valentine Avenue was being reconstructed. He stated that Senator Chaudhary was not able to meet with him directly but would like to be kept informed of this project because he is interested in knowing if the City is listening to its residents. The residents on Valentine Crest Road are against the reconstruction of their street even though there is a sag in the line that "may" cause problems. The residents would be supportive of a mill and overlay on Valentine Crest Road similar to what is proposed for Janet Court but they do not support a reconstruction of the road. A new road would not increase the value of these homes enough to offset the recent decline in the value of the homes. Mayor Harpstead closed the Public Inquiries/Informational at 7:10 p.m. 3. APPROVAL OF MINUTES None. 4. CONSENT CALENDAR A. Claims and Payroll B. Public Works Director Resignation ARDEN HILLS CITY COUNCIL—May 10, 2010 3 4. Consent Calendar (continued) } D. Approve Resolution 2010-022 Designating Polling Locations and the Absentee Ballot Board Counting Location for the 2010 Primary and General Elections E. Approve Resolution 2010-024 Charitable Gambling License for Merrick, Inc. to Conduct Charitable Gambling at Blue Fox Bar& Grill F. Approve Resolution 2010-025 Charitable Gambling License for 621 Foundation to Conduct Charitable Gambling at Flaherty's Bowl G. Approve the Request for a Night Time Construction Activity Waiver for Land O' Lakes on Their Property Located at 4001 Lexington Avenue for the Period of July 99 2010 to August 30, 2010 MOTION: Councilmember Grant moved and Councilmember Holden seconded a motion to approve the Consent Calendar as amended and to authorize execution of all necessary ,documents contained therein. The motion carried unanimously (5- 0 . 5. PULLED CONSENT ITEMS A. Accept Resignation of Don Messerly from the Parks, Trails, and Recreation Committee Councilmember Grant stated Don Messerly is passionate about the parks and has worked hard for the City to make the City's parks what they are today. He will be missed greatly on the Parks, Trails, and Recreation Committee. Parks and Recreation Manager Michelle Olson stated that Don Messerly will be missed and this was a loss for the Committee and City. MOTION: Councilmember Grant moved and Councilmember Holmes seconded a motion to Accept the Resignation of Don Messerly from the Parks, Trails, and Recreation Committee. The motion carried unanimously (5-0). 6. PUBLIC HEARINGS A. Host Approval for $30,000,000 City of Spring Park Conduit Debt for Presbyterian Homes Finance Director Sue Iverson stated the City has been requested to hold a public hearing for host approval of$30,000,000 of Multifamily Housing and Health Care Revenue Notes to be issued by the City of Spring Park on behalf of Presbyterian Homes. Host approval is required as part of the proceeds of these bonds will be used to refund the City of Arden Hills Housing and Health Care ARDEN HILLS CITY COUNCIL—May 10, 2010 4 6.A. Host Approval for $30,000,000 City of Spring Park Conduit Debt for Presbyterian Homes (continued) Revenue Bonds (Presbyterian Homes of Arden Hills, Inc.), Series 1999B. The City's Bond Council has reviewed this request. After the public hearing, the Council is requested to approve a resolution giving host approval and the execution of a Joint Powers Agreement and an Assignment and Assumption of Regulatory Agreement. The City's Bond Counsel's opinion is that these transactions do not create any legal liability on the part of the City of Arden Hills for these bonds. Mayor Harpstead opened the public hearing at 7:16 p.m. Mayor Harpstead closed the public hearing at 7:17 p.m. MOTION: Councilmember Holden moved and Mayor Harpstead seconded a motion to Adopt Resolution 2010-026, Giving Host Approval to the Issuance of $30,000,000 Multifamily Housing and Health Care Revenue Notes under Minnesota Statutes, Chapter 462c to the City of Spring Park and Authorizing the Execution of a Joint Powers Agreement and an Assignment and Assumption of Regulatory Agreement. Councilmember Holden clarified there would not be any cost to the City for this request. Finance Director Iverson stated this was correct. This request will refund the conduit debt that the City had already granted to Presbyterian Homes. The motion was called to a vote. The motion carried unanimously(5-0). 7. NEW BUSINESS A. Public Works Director Position Finance Director Iverson stated on April 27, 2010, Public Works Director Greg Hoag submitted his letter of resignation to the City. His last day of employment with the City of Arden Hills will be May 11, 2010. The Personnel Committee has not finalized the job description but they have the advertisement completed. The Council is asked to review this advertisement and suggest any changes they may have. Councilmember Holmes asked if the City would be able to advertise for the position without a completed job description. She asked if the description provided in the advertisement would be enough. Finance Director Iverson stated there was enough information to put together an advertisement p g for the position and the Personnel Committee will meet again to finalize the job descri tion. gp ARDEN HILLS CITY COUNCIL—May 10, 2010 5 7.A. Public Works Director Position (continued) Councilmember Holden clarified the Personnel Committee is 95% done with the Public Works Director job description. Councilmember McClung asked what the salary range for this position would be. He also stated the current organizational chart and Joint Powers Agreement with Roseville have the City Administrator overseeing the Engineering. He asked if this would be changed with the hiring of a new Public Works Director. Finance Director Iverson stated the salary would be the same as what the current Public Works Director is, which is a Grade 11. She also clarified that the new Public Works Director would be responsible for overseeing the Engineering. City Administrator Patrick Klaers stated this change will require an amendment to the Joint Powers Agreement with Roseville. MOTION: Councilmember Grant moved and Councilmember Holden seconded a motion to Authorize AdvertisinLy for the Public Works Director Position per the Recommendation of the Personnel Committee. The motion carried unanimously(5-0). • , C. Sand Companies, Inc. Request for a Letter of Support for Housing Tax Credits with the Minnesota Housing Finance Agency for up to $575,000 in Public Assistance as Proposed in the May 10, 2010,Memorandum City Planner Beekman stated at the September 14, 2009, meeting, the City Council approved a letter of support for Sand Companies, Inc. (SCI) housing tax credit application to the Minnesota Housing Finance Agency (MHFA) for the 55-unit Arden Village workforce housing project at 1296 County Road F. That letter of support offered up to $400,000 in public assistance, which could be in the form of Tax Increment Financing (TIF), waived fees, or a combination of sources. Applications with community financial support score higher and have a better chance of obtaining the housing tax credits, which are a key part of making the building affordable. The MHFA announced their awards at the end of January 2010; however, the Arden Village proposal was not selected at that time. MHFA encouraged SCI to resubmit their application for the next funding round. The housing tax credit applications are due June 15, 2010. In order to submit a new application the MHFA, SCI is requesting a revised letter of support from the City. The revised letter of support is requesting up to $540,000 in public assistance. The source of the assistance has not been determined, but potential sources include TIF, and the proposal to sell the communications tower to the City. A letter of support is not an approval of tax increment financing, the proposal to sell the tower to the City, or any other form of public assistance. The Financial Planning and Analysis Committee (FPAC) recommends that the City of Arden Hills issue a letter of support for up to $540,000 of assistance for the Workforce Housing Project on ARDEN HILLS CITY COUNCIL—May 10, 2010 6 7.C. Sand Companies, Inc. Request for a Letter of Support for Housing Tax Credits with the Minnesota Housing Finance Agency for up to $575,000 in Public Assistance as Proposed in the May 10, 2010, Memorandum (continued) County Road F. This $540,000 does appear to be an appropriate amount of gap financing needed for this $10,400,000 project. It is anticipated that the funding for this support would come from the following potential sources; Ramsey County, cell tower proceeds and TIF. The request for support increased for three primary reasons. First, the City's approval of the project required additional stone on the exterior of the building and additional amounts of fencing around the property. Secondly, the increased amount of funding will translate into a higher point allotment on the application to the MHFA resulting in a higher likelihood that the project will be awarded. Lastly, the higher request takes into account the proposal to sell the tower to the City, which results in a loss of revenue to SCI. If the tower is not sold to the City, the need for public assistance would be reduced. SCI is also applying for a HOME grant from Ramsey County and according to Mary Lou Egan at Ramsey County Community Development, SCI may receive a small amount of funding, perhaps $35,000, in 2010 to support their tax credit application to MHFA. The project may be eligible for up to $300,000 in support from the County, but they will not tie up the funds in 2010 for a project that is not scheduled to start until 2011. SCI will not know if additional County funds are awarded until May 2011. Grants received by SCI would be factored into the public subsidy evaluation and would reduce any requested need from the City. Councilmember Holden asked if it was a sure thing that Sand Companies would receive the $35,000 from Ramsey County. City Planner Beekman stated Ramsey County has agreed to send a letter of support for $35,000 as part of the application but nothing is guaranteed. Councilmember McClung clarified if Sand Companies were to apply for and receive more funding from Ramsey County then the public funding being requested would be reduced. He also clarified that SCI is asking the City to support $540,000 and Ramsey County is supporting $35,000 at this time. City Planner Beekman stated this is correct. Ramsey County is sending a letter of support for $35,000 this year and they are encouraging SCI to apply next year, when they start construction, for a larger amount from Ramsey County. Councilmember McClung asked if the tower was something the City decided not to pursue then the amount the City was being asked to support would be reduced by the amount of the tower. City Planner Beekman stated at this time the appraisal of the tower is not complete so the City and SCI have been using a figure of$175,000 as an estimated figure when calculating the amount of support being requested. Once an appraisal is received then the City would have a clear amount to work with. AR—DEN HILLS CITY COUNCIL—May 10, 2010 7 7.C. Sand Companies, Inc. Request for a Letter of Support for Housing Tax Credits with the Minnesota Housing Finance Agency for up to $575,000 in Public Assistance as Proposed in the May 10, 2010, Memorandum (continued) Councilmember Holden stated the value for TIF is $184,000 and the value for the tower is estimated at $175,000 for a total of$359,000. She asked how the amount of$575,000 for public support was reached. City Planner Beekman clarified the City is not obligating itself to any amount for public support. She also stated that the tower has not been valued at $175,000. This is the figure that the City has been using for conversation purposes. SCI is looking at alternative funding sources. Ramsey County is a promising funding source and this is something they would need to financially work out with the City and other funding and revenue sources. The City is not obligated to $575,000 minus the value of the tower. Ultimately this would be negotiated with SCI. How the TIF would work out is also something that will need to be looked at, in terms of the length of the TIF and other options such as reduced fees. Councilmember Holden noted the memo stated that SCI would sell the tower to the City for $1.00. Since SCI is not a non-profit there will be tax implications. She asked how this would be factored into the amount the SCI is requesting. City Planner Beekman stated this would be factored into the TIF analysis. Councilmember Grant asked how much additional stone was being added to the building to justify the increased amount SCI is requesting. Mr. Jamie Thelen, CEO Sand Companies, Inc., explained the Council had wanted the facility to resemble the one located in Maple Grove and this did increase the amount of stone from the original proposal. The additional amount being requested also includes the construction for the additional fencing being requested by the Council. He clarified that he did not have the exact figures at this time. But it was not a significant number. Councilmember Grant asked City Planner Beekman to explain what was meant by a higher point allotment for the MHFA application. City Planner Beekman explained applications received by MHFA were valued on a point system for each of the criteria or line items they evaluate. The more criteria they meet the higher the point value and the more likely the project will be approved, similar to a grant process. The higher the amount the City has stated they are willing to support; the higher the point value on the application. Councilmember Grant clarified that he did not want to see the amount of the TIF be raised just to increase SCI's application score. He asked if the application deadline was June 15 why the Council was being asked to approve this request at this time. The Council did not have all the figures they needed to make a decision, such as the appraisal amount for the tower. The Financial ARDEN HILLS CITY COUNCIL—May 10, 2010 8 7.C. Sand Companies, Inc. Request for a Letter of Support for Housing Tax Credits with the Minnesota Housing Finance Agency for up to $575,000 in Public Assistance as Proposed in the May 10, 2010, Memorandum (continued) Planning and Analysis Committee has not made a recommendation to the Council at this time regarding the tower. This recommendation would enable the City to determine an appropriate amount of TIF for the project. City Planner Beekman stated the June 15 deadline is when SCI must have their application submitted. The letter of support they are requesting from the City is a piece of this application and they would like to have it in order to use these figures for their Performa and finalize the application and get it submitted on time. The City could also discuss this proposal at their May 24 meeting if additional information or research is required. FPAC did look at the proposal and does recommend approval of the letter of support. The TIF discussion is ongoing and will not be determined until after the June 15 deadline. FPAC had looked at the basic financials and the letter of support and felt they could make a recommendation for approval of the letter of support and moving forward with this since it does not obligate the City to any financing. Councilmember Grant asked at what point FPAC will bring a recommendation back to the Council regarding the tower. Finance Director Iverson stated FPAC did not make any recommendations, rather they stated this request appears to be an appropriate amount of gap financing for this type of project. FPAC has received the leases for the tower but they are still waiting for the appraisal of the tower. FPAC has not had all the information they need to do a complete analysis on the tower. The leases were just received and FPAC has not had time to evaluate these yet. The next meeting for FPAC is June 8 Councilmember Holden asked for clarification on why the amount of the request was increased if the amount of stone added to the building and the additional fencing were minimal City Planner Beekman stated the amount of the request was increased largely due to the proposed purchase of the tower and the amount that the City has used in reference to the tower is $17500. If the City decided to purchase the tower and if the City paid $175,000 for it, then that amount would be rolled into the public financing package. Because of this, the amount was increased from $400,000 to $575,000. Councilmember Holden asked where the break was for gaining the additional points for the funding amount. Mr. Thelen clarified SCI would gain two additional points if the City supports the $575,000 and the point at which these points would be received is close to $575,000. Mayor Harpstead asked if the only changes in the letter being presented at this time and the previous letter that was approved are the date and the dollar amount of support. He asked if there were any other changes in the letter. AR-DEN HILLS CITY COUNCIL—May 10, 2010 9 7.C. Sand Companies, Inc. Request for a Letter of Support for Housing Tax Credits with the r ; Minnesota Housing Finance Agency for up to $575,000 in Public Assistance as Proposed in the May 10, 2010, Memorandum (continued) City Planner Beekman stated there were no other changes to the letter. Mayor Harpstead asked hypothetically if the TIF allowed was $200,000 and the City chose to not purchase the tower, what the maximum obligation to the City would be. He stated the materials presented to the Council show an example that states: if TIF is received for $184,000 then the City would pay the gap of$391,000 under the current proposal. He asked if this was only in the presence of a tower transaction or if this is also a commitment to go beyond the City's but/for TIF obligation. Finance Director Iverson stated that the City has been running the Performa and they have been basing what they feel the project merits based on the Performa and they do not believe that this will go over 15 years. Right now TIF is $184,000 but they have not figured the tower into this amount. She clarified the City is offering a letter of support with a good faith commitment however the City is not legally responsible for this amount. This is something that would have to be worked out. Any other funds that SCI would get from sources such as Ramsey County could also be used to fill this gap. Councilmember Holden clarified that the letter of support is a good faith commitment from the City to provide the requested support if the Housing Tax Credits are approved. City Planner Beekman stated this is correct. The ultimate question for the City is if this is the financing gap that has been determined then either the City will decide to fill the gap, fill part of the gap, or not assist in filling the gap at all. This is a letter saying the City is willing to look at financing the gap. There are other financing options that are available as well and this is not a commitment. It will be based on the viability of the project and the City's interest in participating in this project. Councilmember Holmes asked if the City sent this letter to MHFA and told SCI that the City is willing to commit up to $540,000 and there is only $184,000 generated through TIF then the City will have a huge gap that they have no way to fill. She clarified that the letter may not be a commitment but it is good faith. City Planner Beekman stated there are other funding sources that could be looked at for this project such as Ramsey County. Finance Director Iverson clarified in order for Ramsey County to disperse their funds it does need to go through the City and would be counted as City support. Councilmember Holmes stated the City needs a bigger commitment from Ramsey County than $35,000 if this is what is expected to fill this gap. AR—DEN. HILLS CITY COUNCIL—May 10, 2010 10 7.C. Sand Companies, Inc. Request for a Letter of Support for Housing Tax Credits with the Minnesota Housing Finance Agency for up to $575,000 in Public Assistance as Proposed in the May 10, 2010, Memorandum (continued) Councilmember Grant stated it is difficult to approve a figure of$540,000 as a good faith TIF amount if this is not what the City is intending to do. Finance Director Iverson stated the but/for analysis does not show that the project needs more than a 15-year TIF commitment. Mayor Harpstead stated he was in favor of the last proposal and encouraged the City to move forward with some form of multi-family housing specifically targeted at work force. The proposal had been clear and clean but this proposal seems to have gotten cloudy. He clarified the City had not rescinded their last letter of support. He recommended the Council table this item and ask Staff to come back with clarity on the questions presented. Councilmember Holmes stated she would agree with tabling this request for additional information and clarification. She stated she has several issues with this request and the original letter of support. The City is not able to fill the gap between the TIF amount and the original $400,000 the City agreed to support. She was unaware the City would be expected to fill the gap between the amount of TIF and the amount of support that was offered. i Councilmember Holden asked what numbers would need to come back if this proposal were tabled at this time. SCI would like to get $575,000 in support in order to get the additional points and the City can only support $184,000 with TER Mayor Harpstead stated new numbers may not be needed but the portion pertaining to the tower needs to be clarified and it needs to be explicate that SCI is looking for more support that TIF can justify with a proposal on how to accomplish filling this gap. Councilmember McClung stated he would be out of town for the May 24 Council meeting. Councilmember Holden asked how much public safety cost would be used by this project. She was having a hard time supporting this project when the cost break down was $190,000 per unit. There were families in the City that are having a hard time supporting their $190,000 homes and now the City is going to ask them to subsidize public safety for this project. Mayor Harpstead stated the amount proposed is a reasonable amount for a quality building that is sustainable and will last. MOTION: Councilmember Grant moved and Mayor Harpstead seconded a motion to Table Sand Companies, Inc. Request for a Letter of Support for HousinLy Tax Credits with the Minnesota Housing Finance Agency for up to $575,000 in Public Assistance as Proposed in the May 10 2010 Memorandum. The motion carried (4-1). ARDEN HILLS CITY COUNCIL—May 10, 2010 11 f 7.C. Sand Companies, Inc. Request for a Letter of Support for Housing Tax Credits with the Minnesota Housing Finance Agency for up to $575,000 in Public Assistance as Proposed in the May 10, 2010, Memorandum (continued) Ayes: Mayor Harpstead, Councilmembers Holmes, Grant and McClung Nays: Councilmember Holden D. Sanitary Sewer Repair—Venus Avenue Easement Civil Engineer Kristine Giga stated Staff has identified a sanitary sewer repair that is needed on the main that is located parallel to the Elmer L. Anderson Trail Connection south of Venus Avenue. Public Works crews encountered difficulties getting the camera through the offset joints in the pipe. There is a segment of main line approximately 60-feet in length that has not been televised, since the camera cannot get past the offset joints. Staff recommends that this segment be repaired, along the south 40 feet of the pipe, which was televised; this segment of pipe is cracked, and there is evidence of root intrusion. Since this area is currently under construction, it is the appropriate time to make these repairs. Two alternatives were provided to the contractors to bid. One alternative is to replace the main line in its current location. This alternative will require removal of nine large cottonwood trees. The second alternative is to construct a new sewer line around the large trees by constructing two new manholes. The main line would have a jog, which is less desirable from a maintenance perspective, but would minimize tree removal. Once all of the construction is completed in this area, Staff will work on a tree replacement plan to mitigate the trees removed for trail construction, erosion correction, and sanitary sewer repair. Councilmember Grant asked if the pipe could be adequately repaired without removing the trees or injuring the trees. Civil Engineer Giga stated Staff did not see a problem with realigning the pipe without significant damage to the trees. Councilmember Grant clarified the pipes in this area are clay pipe and not PVC pipe and PVC pipe would be used to fix this segment. Civil Engineer Giga stated this was correct. Mayor Harpstead stated cottonwoods are not trees that are protected by the City. He stated hardwood trees could be planted to replace these trees if they are removed. Councilmember Holden stated neighbors along the trail would no longer have a barrier between them and the trail if these trees were removed. Also these trees add to the trail because they are large. MOTION: Mayor Harpstead moved to Authorize Staff to Contract with the Lowest Provider to Repair Sanitary Sewer Main on the Venus Easement in It's Current Location with the Removal of the Nine Cottonwood Trees. The motion failed due to a lack of a second. AR—DEN HILLS CITY COUNCIL—May 10, 2010 12 7.D. Sanitary Sewer Repair— Venus Avenue Easement(continued) MOTION: Councilmember Grant moved and Councilmember Holmes seconded a motion to Authorize Staff to Repair the Sanitary Sewer Main on the Venus Easement _by Realigning the Pipe and Adding Two Manholes, Councilmember Holden stated the amounts being presented are only estimates. The actual figures may be more significant and this may have an impact on how the Council votes on this project. Mayor Harpstead explained he would prefer to remove the trees and repair the sewer main in its current location because this is a sewer main and the less bends the more efficient it will operate. Also by removing the trees there would not be a need for the two additional manholes that the City would need to maintain. Councilmember Holmes asked if PVC was more flexible and if there would be fewer problems with it. She also stated that having the manhole covers along the trail would not be aesthetically pleasing. Councilmember Grant recommended Staff use the digital camera for proposals such as this so the Council has a clearer view of what is being proposed. Councilmember Holmes asked if this would need to be decided right away or if Council would have an opportunity to go and view the area again before making a decision. Civil Engineer Giga stated quotes are to be submitted by Tuesday May 11. Staff would like to have a determination so that they can work with the contractor who is currently working on the trail in this area if the Council decided to relocate the sewer pipe. The contract for Perry Park says this project needs to be completed by the end of May and the contractor will likely be paving the Venus trail at the same time as Perry Park. Staff would like to have this work done before the trail is paved. Councilmember McClung stated since the quotes would be submitted on Tuesday the Council could review these quotes at the Monday May 17 worksession and call a special meeting in order to provide Staff with the approval on what the Council would like to do. Even though these are cottonwood trees they are of significant size and the residents have expressed concerns over the number of trees that have been removed already with the trail project. He clarified he would like to have real numbers to evaluate before making a decision. Councilmember Holden stated she would favor tabling this project until Monday when the quotes could be evaluated. Councilmember Holmes stated there is no funding to replant trees in this area and there have been a significant number of trees cut down. ARDEN HILLS CITY COUNCIL—May 10, 2010 13 7.D. Sanitary Sewer Repair— Venus Avenue Easement(continued) Civil Engineer Giga stated- some of the trees that were donated through the Ramsey County Friends of the Park program would be planted in this area. Parks and Recreation Manager Olson stated there is also a tree preservation fund that will be utilized for this project. Councilmember Grant withdrew his motion. Councilmember Holmes withdrew her second to Councilmember Grant's motion. MOTION: Councilmember Holmes moved and Mayor Harpstead seconded a motion to Table the Discussion ReLyarding the Contract with the Lowest Quote Provider to Repair the Sanitary Sewer Main on the Venus Easement to a Special Meeting on May 17, 2010. The motion carried unanimously (5-0). 8. UNFINISHED BUSINESS A. Motion to Adopt Resolution 2010-023: Awarding Bid for the 2010 Pavement Management Program Civil Engineer Giga stated On March 8, 2010, the City Council approved the plans and specifications for the 2010 Pavement Management Program and ordered advertisement for bids. The bids were presented to the City Council at the April 26, 2010, City Council meeting where additional information was requested including how long the bids are valid, more detail on location and extent of utility improvements and drainage issues, and whether a mill and overlay could address the drainage problems on Valentine Crest Road. She provided a summary of the utility improvements by street. She also stated the bids are valid through May 22, 2010 and the City needs to take an action on this contract at the May 10, City Council meeting, or hold a special meeting prior to May 22. Due to the existing pavement condition, Valentine Crest Road is not a good candidate for a mill and overlay. The severity of the distresses present in this roadway indicate that, in addition to the surface distresses resulting from age and drying out of the asphalt, there are numerous areas where the pavement is exhibiting damage related to poor base and subgrade soils. If a mill and overlay option were selected many of these distresses would reflect through the new overlay within a few years, resulting in further perpetuating the poor condition and poor pavement performance. The current reconstruction assessment rate based on the low bids is $8,268 per unit, based on 31 units, including Valentine Avenue, Valentine Court, and Valentine Crest Road. If Valentine Crest road were removed from the project, the proposed p p reconstruction assessment rate would be affected. The current mill and overlay assessment rate based on the low bids is $1,721 per unit, based on 44 units, if Katie Lane, Katie Court and Janet Court are included. If Janet Court were removed from the project, this would affect the mill and overlay assessment rate. If the scope of the project is changed, the resolution will need to be modified accordingly. ARDEN HILLS CITY COUNCIL—May 10, 2010 14 8.A. Motion to Adopt Resolution 2010-023: Awarding Bid for the 2010 Pavement Management Program (continued) Councilmember Holden asked what kind of pipe there was on Janet Court. Civil Engineer Giga stated the sewer pipe on Janet Court is PVC. There is a sag in this line but because the pipe is PVC it does not impact the flow as much as the sag that is present in the clay sewer pipe on Valentine Crest Road. The lining of the pipe on Valentine Crest Road would be scheduled for a future date. Councilmember Grant clarified that the sewer lining was a noninvasive project and could be done at a separate time. He also stated the costs pertaining to the sewer or hydrants were not costs to the residents. The only costs to the residents were the costs of paving the road. Councilmember McClung asked Civil Engineer Giga if the tapes for the sewer pipe on Valentine Crest Road were reviewed and how the sags in this pipe would be characterized. Civil Engineer Giga stated the tapes had been reviewed and the sags were up to 2 inches, which can result in losing up to 25% of the capacity and restricting the flow. This is the point at which correction should be made. Councilmember Holden stated the sags in the sewer pipes on Valentine Crest Road are in clay pipes and there are cracks in the pipe along with sags. She stated there have also been tree roots in the pipes and replacing this section of pipe with PVC would correct these problems. Mayor Harpstead asked why the per unit assessment would be reduced if Janet Court were removed from the project. Civil Engineer Giga stated the reasons the amount of the assessment decreased with the removal of Janet Court include: the number of assessable units along this road compared to the length of Janet Court and that there is a property along this stretch that is addressed on Lake Valentine Road, which therefore would not be included in the assessment roll per the Assessment Policy. Mayor Harpstead asked if this proposal had been previously tabled with a motion. Councilmember Holden clarified at the previous meeting the motion did not include Janet Court and the motion did not pass. The motion failed with a 2-2 vote. MOTION: Mayor Harpstead moved and Councilmember Holden seconded a motion to Approve Resolution 2010-023: Awardin bid for the 2010 Pavement Mana ement Pro ram to T.A. Schifsk & Sons,__Inc. of North St. Paul Minnesota, Excluding the proposed work for Janet Court, Councilmember Holmes stated Janet Court had been previously excluded but that was before the Council knew the extent of the sags in this stretch of sewer. She stated since the amount of sag is the same as Valentine Crest Road it should be included in the Jro'ect. p ARDEN HILLS CITY COUNCIL—May 10, 2010 15 8.A. Motion to Adopt Resolution 2010-023:Awarding Bid for the 2010 Pavement Management Program (continued) Civil Engineer Giga explained that the amount of sag in both sections is the same but the capacity impact is less with PVC pipe. When clay pipe sags it also tends to crack but this is not as likely to happen with PVC so there is less potential for root intrusion. Councilmember Holden stated Janet Court was only scheduled to have a mill and overlay done at this time and the sewer system was not going to be addressed at this time. Since this was a mill and overlay and the PCI rating was at the high end of the rating for repair it could be delayed until a future date when the rating warranted the mill and overlay. Mayor Harpstead asked if the sag in the pipe on Janet Court could be repaired with a patch on the circle. He clarified this type of repair could be done at any time and would be at the cost of the City. Councilmember Holden stated she took offense to some of the comments from the residents on Valentine Crest Road. The comments "go ahead and reconstruct the road as if the residents don't exist" do not reflect how this Council does business. The Council does listen to the comments and concerns of the residents. There are problems with the sewer in this area and the road is in need of repair. The Council is considering the needs of the residents when it is deciding if it should make these needed repairs. There are times when things need to be done and this is an obligation that the City needs to do. Councilmember McClung stated he had been to the Valentine Crest Road area and he stated that these roads do need to be done. The deciding factor for him is the underground infrastructure and the fact that this is degrading. He will support this project at this time. Councilmember Holden stated she went out to this area with an engineer and he stated these roads need to be repaired, not only the infrastructure below but the top surface and drainage as well. She stated she would support this project at this time. Mayor Harpstead stated he would support this project as well. It is clear this road needs some improvement and the engineering staff is recommending this due to the infrastructure and it is time to move this forward. Councilmember Grant stated Staff has demonstrated there are issues both above and below the road surface and those issues need to be repaired. He stated that removing Janet Court from the project at this time is understandable. He pointed out that this does not mean they will not be reconsidered in the near future with other mill and overlay projects. He stated he would support this project at this time. Councilmember Holden asked if the city had sewer backup insurance. ARDEN HILLS CITY COUNCIL—May 10, 2010 16 8.A. Motion to Adopt Resolution 2010-023:Awarding Bid for the 2010 Pavement Management Program (continued) Finance Director Iverson stated the City did not have sewer backup insurance at this time. The City had lost this insurance due to a significant number of claims and not taking care of the sewer system. It is the intent of the City to get sewer backup insurance again. In order to get this insurance the City has to have a regular maintenance program again and fix all the problems. The motion was called to a vote. The motion carried unanimously(5-0). Mayor Harpstead asked what the next steps would be in this process. Civil Engineer Giga stated Staff would make the corrections to the resolution. The next steps would be to declare costs to be assessed, order preparations of the assessment roll, receive the assessment roll, order the assessment hearing, hold the assessment hearing, and adopt the assessment roll. The resolution declaring the costs to be assessed and ordering the preparations of the assessment roll could be prepared for the next Council meeting. If the ordering of the preparations of the assessment roll is approved on May 24, then potentially the Council could also receive the assessment roll and order the assessment hearing on May 24. If this is done then the assessment hearing would be a month later to allow for notification to residents and publication. The earliest the assessment hearing could occur is the second meeting in June. Councilmember Holden asked what streets are scheduled for mill and overlay and reconstruction for next year. Civil Engineer Giga stated she would look up this information and put it in the admin update. Mayor Harpstead stated this information is also available on the City's website. 9. COUNCIL COMMENTS AND REQUESTS Councilmember McClung stated he would be out of town from May 21 to June 6 and would not be attending those meetings scheduled during this time frame. Councilmember Holden stated on the conference call with the GSA on the TCAAP issue last Monday, the GSA is still talking to the Army about the lease/licensing. GSA had said that the Army had not bought off on it. She stated the main concern she has with the lease/licensing is County Road 96 by the entrance to the TCAAP property there is 20-30 acres in this agreement. One thing the City needs to hit the GSA with is that this would be an opportunity to develop right at the entrance that would not be on the tax rolls for many years. The City needs to watch and monitor this to see if they can make this part a little smaller. Mayor Harpstead asked Finance Director Iverson if the Federal Government leases this land, would it be collecting property taxes as undeveloped land. ARDEN HILLS CITY COUNCIL—May 10, 2010 17 9. Council Comments and Requests (continued) Finance Director Iverson stated it is not collecting taxes as undeveloped land until it is owned. Councilmember Grant stated the land would still be federal property so the policing of this property would be the responsibility of Ramsey County. Councilmember Grant asked if gambling permits needed to be renewed yearly. Finance Director Iverson stated the State does not require gambling permits to be renewed annually but the City can be more restrictive than the State in this matter. City Ordinance requires gambling permits to be renewed annually. Councilmember Grant stated he would be unavailable for the June 21 worksession and the June 28 meeting. Councilmember Holmes stated she may have a problem with the May 24 meeting but would let the Council know. Councilmember Grant stated having three members of the Council present does make a quorum for meeting purposes. • Mayor Harpstead reminded the Council that although there does not need to be a majority present to make decisions the Council had an agreement in principle that all major decisions for the City should be tabled until the majority can be present and vote. Councilmember Holmes asked if the Council had received the invitation to the ground breaking for the Arden Hills Readiness Center (AHATS) on May 13. She stated she would not be able to attend this event. Mayor Harpstead stated he would be able to attend. Councilmember Holden stated she would be able to attend as well. Councilmember Holmes stated former Councilmember Lois Rem was still on record as the representative for the Minnesota Department of Human Rights. She suggested the City identify a new representative. There is a meeting on May 27 in Roseville for this group. She suggested this be discussed at a worksession. Mayor Harpstead welcomed the new City Administrator Patrick Klaers. City Administrator Klaers asked about the special meeting for the continuation of Item 7D on the agenda. He also pointed out there was a potential for two Council members to be absent when the Council discussed the letter of support for Sand Companies and the tower connected with this property. ARDEN HILLS CITY COUNCIL—May 10, 2010 18 9. Council Comments and Requests (continued) Mayor Harpstead stated the City Clerk would be sure to post the special meeting properly. ADJOURN MOTION: Councilmember Grant moved and Councilmember Holden seconded a motion to adiourn to a worksession. The motion carried unanimously (5-0). Mayor Harpstead adjourned the Regular City Council Meeting at 8:52 p.m. Patrick Klaers tanley arpstea City Administrator Mayor