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HomeMy WebLinkAboutCC_Minutes_2008_0609City of j~~ . ~~ Minnesota, USA Regular City Council Meeting Minutes City Hall Council Chambers, 2660 Civic Center Drive Monday, June 9, 2008 1. Call Roll Mayor Klausing called to order the regular meeting of the Roseville City Council at ap- proximately 6:00 p.m. and welcomed everyone. Interim City Councilmember Robert Willmus was sworn in by his father Thomas M. Willmus, at which time Councilmember Willmus introduced his family in attendance to- night, and provided brief comments and expressed appreciation for those friends and family who had been instrumental in his pursuit of community service. Mayor Klausing welcomed Councilmember Willmus, and noted that the gavel he used to call tonight's meeting to order had previously been used by Councilmember Willmus's great-grandfather and grandfather who had both served at separate times on the Roseville Town Board. Voting and Seating Order: Willmus; Ihlan; Pust; Roe; and Klausing. City Attorney Jay Squires was also present. 2. Approve Agenda Mayor Klausing noted removal of Business Action Item 12.a entitled, "Consider request to perform a City Abatement for unresolved City Code Violations at 2112 Dale Street;" as staff had advised that code violations had been remedied prior to tonight's meeting. Mayor Klausing also requested removal of Business Action Item 12.h entitled, "Consider Ratification of Appointment to the Housing and Redevelopment Authority Board;" to al- low him time for deliberation and preparation of a recommendation to the full Council. By consensus, the agenda was approved as amended. 3. Public Comment Mayor Klausing called for public comment by members of the audience on any non- agenda items. a. George Bednar, 2940 N Hamline Avenue with wife Lillian Mr. Bednar, on behalf of himself and his wife Lillian, complimented the City Council on their appointment of Interim Councilmember Willmus, noting his per- sonal attributes as a neighbor and friend, and encouraged others in assisting eld- erly residents. b. Roger Hess, Jr., 1914 Wagner Place Regular City Council Meeting Monday, June 9, 2008 . Page 2 Mr. Hess requested, as the City Council begins their 2009 budget deliberations, that they consider replacing the existing bathroom at the arboretum; and further requested that, if the City Council considers a permanent spot for a license center that it include a drive up window for purchasing license tabs. 4. Council Communications, Reports & Announcements & HRA Report a. Receive Legislative Update Documents Councilmember Ihlan provided, to the public and fellow Councilmembers, a summary of several recent presentations on information adopted and some not adopted, recently presented at the Ramsey County League of Local Governments (RCLLG) meeting. Councilmember Pust advised that the Housing and Redevelopment Authority (HRA) will continue to work on refining and implementing the HRA's strategic plan in anticipation of another joint meeting with the City Council scheduled in July. 5. Recognitions, Donations, Communications 6. Approve Minutes • a.Approve Minutes of May 21, 2008 S ecial Meetin P g Pust moved, Ihlan seconded, approval of the minutes of the May 21, 2008 Special Meeting as presented. Roll Call Ayes: Ihlan; Pust; Roe and Klausing. Nays: None. Abstentions: Willmus. b. Approve Minutes of May 21, 2008 Regular Meeting Pust moved, Ihlan seconded, approval of the minutes of the May 21, 2008 Regular Meeting as presented. Roll Call Ayes: Ihlan; Pust; Roe and Klausing. Nays: None. Abstentions: Willmus. 7. Approve Consent Agenda There were no changes to the Consent Agenda. At the request of Mayor Klausing, City Manager Bill Malinen briefly reviewed those items being considered under the Consent Agenda. a. Approve Check Register Regular City Council Meeting Monday, June 9, 2008 Page 3 • Pust moved, Ihlan seconded, approval of the following claims and payments as presented. ACH Pa ents $677,805.00 51138-51292 330,422.23 Total $1,008,227.23 • b. Roll Call Ayes: Willmus; Ihlan; Pust; Roe and Klausing. Nays: None. Approve General Purchases or Sale of Surplus Items Exceeding $5,000 Pust moved, Ihlan seconded, approval of general purchases as follows: Department Vendor Streets Konrad Materials Streets Kath Fuel Oil Streets TMI Coating Inc Streets Cushman Motor Streets C. Mogren Inc. Item/Description Amount Crack sealing material$11,757.60 Blanket PO for fuel $120,000.00 Restoration on 400' $8,900.00 storm pipe 74" flair mower $8,390.00 Repair retaining wall $13,500.00 210 S McCarrons Roll Call Ayes: Willmus; Ihlan; Pust; Roe and Klausing. Nays: None. c. Approve Business licenses Pust moved, Ihlan seconded, approval of business license applications for the pe- riod of one (1) year, for the following applicants: • A licant/Location T e of License AKM Convenience, LLC, 2216 W County Cigarette/Tobacco Road D Products Gasoline Station TGI Friday's #0249, 2480 Fairview Avenue Cigarette/Tobacco Products Rocco Altobelli Inc., 1655 County Road B-2 Massage Therapy Establishment Stephanie Salak at Mind, Body & Soul Massage Therapist 1740 Lexin ton Avenue AMC Theatres Rosedale 14, 850 Rosedale Theater License Center :7 • Regular City Council Meeting Monday, June 9, 2008 Page 4 Colleen & Co., 3092 Lexington Avenue Massage Therapy Establishment M.T. Restaurants, d/b/a Joe Senser's Amusement Device Sports Grill and Bar, 2350 Cleveland Ave- Pool/Billiards nue Hamline Liquors, 2825 Hamline Avenue N Cigarette/Tobacco Products J. C. Penney Corp., 1700 W County Road Massage Therapy B-2 Establishment LTF Club Operations Company, Inc., Massage Therapy d/b/a Life Time Fitness, 2480 Fairview Establishment Avenue N Shawn Boike at Life Time Fitness Massage Therapist 2480 Fairview Avenue N Jennifer Fornwall at Life Time Fitness Massage Therapist 2480 Fairview Avenue N Amy Kopp at Life Time Fitness Massage Therapist 2480 Life Time Fitness Jade, Inc., d/b/a Rosedale BP, Cigarette/Tobacco 2441 N Fairview Avenue Products Gasoline Station Sarah McMahill d/b/a Massage Therapy From Heart to Hands Myofascial Massage Establishment 1315 W Lar enteur Avenue #A4 Sarah McMahill at Massage Therapist From Hear to Hands Myofascial Massage 1315 W Lar enteur Avenue #A4 S & Z Inc., d/b/a Tri-City BP Cigarette/Tobacco 3110 Cleveland Avenue N Products Gasoline Station Chuchao Liquor, 700 W County Road B Cigarette/Tobacco Products Chinese Tui-na Massage, Rosedale Center Massage Therapy Establishment Zhifeng Yu at Chinese Tui-na Massage Massage Therapist Rosedale Center Ryder Truck Rental, Inc., 2580 Long Lake Gas Pumps - Pri- Road vate Murphy Petro, d/b/a B-Dale Shell Cigarette/Tobacco 2164 N Dale Street Products Gasoline Station B-Dale Club, 2100 N Dale Street Amusement Device Pool/Billiards Regular City Council Meeting Monday, June 9, 2008 • Page 5 Roll Call Ayes: Willmus; Ihlan; Pust; Roe and Klausing. Nays: None. d. Amend the Joint Powers Agreement with the City of East Bethel Pust moved, Ihlan seconded, approval of an amended Joint Powers Agreement be- tween the City of East Bethel for MIS Services and Support by expanding those services to include full network and desktop support, and management of their li- censing, anti-virus, and spam filtering services. Roll Call Ayes: Willmus; Ihlan; Pust; Roe and Klausing. Nays: None. e. Set a Public Hearing to Provide Host City Approval for Conduit Debt Fi- nancing for Presbyterian Homes Pust moved, Ihlan seconded, adoption of Resolution No. 10628 entitled, "Resolu- tion Calling for a Public Hearing for a Health Care Facilities Revenue Note;" scheduling a Public Hearing on June 30, 2008 for the purpose of acknowledging the expenditure oftax-exempt funds by Presbyterian Homes. • Roll Call Ayes: Willmus; Ihlan; Pust; Roe and Klausing. Nays: None. f. Set a Public Hearing to Acknowledge the Expenditure of Tax-Exempt Funds for Northwestern College Pust moved, Ihlan seconded, adoption of Resolution No. 10629 entitled, "Resolu- tion Calling for a Public Hearing on the Issuance of Adjustable Rate Demand Revenue Bonds and Authorizing the Publication of a Notice of the Hearing (Northwestern College Project);" scheduling a Public Hearing on June 30, 2008 for the purpose of acknowledging the expenditure of tax-exempt funds by North- western College. Roll Call Ayes: Willmus; Ihlan; Pust; Roe and Klausing. Nays: None. g. Set a Special City Council Meeting with the Roseville Area Schools Board for June 25, 2008 Pust moved, Ihlan seconded, approval of scheduling a Special Meeting for the purposes of holding a joint meeting of the Roseville City Council and the Rose- ville Area School District No. 623 School Board for Wednesday, June 25, 2008 at • 6:00 p.m. to be held at the Roseville City Council Chambers. Regular City Council Meeting Monday, June 9, 2008 Page 6 • Roll Call Ayes: Willmus; Ihlan; Pust; Roe and Klausing. Nays: None. h. Authorize Staff to Solicit Bids for Operation of the Clean Up Day Pust moved, Ihlan seconded, authorizing staff to solicit bids for operation of the City's Clean Up Day. Roll Call Ayes: Willmus; Ihlan; Pust; Roe and Klausing. Nays: None. i. Approve Three-Year Teamsters Contract (2008-2010) Pust moved, Ihlan seconded, approval of the proposed terms and conditions for the 2008 collective bargaining agreement with the ~b~ Teamsters, and to direct City staff to prepare the necessary documents for execution, subject to City Attor- ney approval as to legal form. Roll Call Ayes: Willmus; Ihlan; Pust; Roe and Klausing. Nays: None. j. Declare Vacancies on the Ethics, Human Rights, and Public Works, Envi- • ronment and Transportation Commissions Pust moved, Ihlan seconded, extending the vacant term for the Human Rights Commission to March 31, 2010. Roll Call Ayes: Willmus; Ihlan; Pust; Roe and Klausing. Nays: None. Pust moved, Ihlan seconded, directing staff to advertise for applications to serve on the three Commissions having vacancies: Ethics Commission, Human Rights Commission, and the Public Works, Environment and Transportation Commis- sion; with applications due to the City by July 9, 2008; and staff scheduled to bring forward names for interviews prior to the July 21, 2008 City Council meet- mg. Roll Call Ayes: Willmus; Ihlan; Pust; Roe and Klausing. Nays: None. k. Adopt a Resolution Confirming 2007 Housing and Redevelopment Authority Appointments Pust moved, Ihlan seconded adoption of Resolution No. 10630 entitled, "Resolu- tion Approving the Mayor's Appointment of Bill Majerus to the Housing and Re- development Authority in and for the City of Roseville to fill a five (5) year • term." Regular City Council Meeting Monday, June 9, 2008 • Page 7 Roll Call Ayes: Willmus; Ihlan; Pust; Roe and Klausing. Nays: None. Pust moved, Ihlan seconded adoption of Resolution No. 10631 entitled, "Resolu- tion Approving the Mayor's Appointment of Dean Maschka to the Housing and Redevelopment Authority in and for the City of Roseville to fill a five (5) year term." Roll Call Ayes: Willmus; Ihlan; Pust; Roe and Klausing. Nays: None. 1. Approve "Welcome to Roseville" Banner Locations Councilmember Pust questioned whether the City Council had provided input on the banner content and design. Public Works Director Duane Schwartz advised that the sample design included in tonight's packet was for graphic informational purposes only; and that it was not meant for Council approval of the design or content, just a general depiction of the Roseville Visitors Association's (RVA) intended design. • Councilmember Pust opined that she was supportive of the shape and color; but was concerned with confusion in the community with the RVA logo, and no in- clusion of the City of Roseville logo, and raised the issue for consideration, even while recognizing that the RVA was paying for the banners. City Manager Malinen suggested that the City of Roseville logo be used across the "Roseville" portion of the banner; with that being supported by Council con- sensus. Mr. Schwartz advised that he would pass that suggestion along to the RVA. Public Comment John Kysylyczyn, 3083 N Victoria Street Mr. Kysylyczyn expressed surprise that this item was being approved tonight, based on his perception that the City Council would have a role in designing the banners. Mayor Klausing clarified the requested motion for banner locations, not design. Mr. Kysylyczyn noted that there was no mention of cost to the City; however, noted that taxpayers would be paying $1,400 for hardware installation for the • banners and that nothing had been mentioned in the agenda about an appropria- tion for that expenditure. Regular City Council Meeting Monday, June 9, 2008 • Page 8 Councilmember Roe noted that the cost of the installation had been included in the original information presented to the City Council; and opined that he was comfortable with the expenditure, since the City owned the brackets and light poles, and could use them in the future. Pust moved, Ihlan seconded, approval of "Welcome to Roseville" banner loca- tions on Larpenteur Avenue and County Road B-2 as shown on the location map made part of the June 9, 2008 Request for Council Action. Roll Call Ayes: Willmus; Ihlan; Pust; Roe and Klausing. Nays: None. m. Ratify 2008/2009 Variance Board Pust moved, Ihlan seconded, appointment of Roseville Planning Commissioners Boerigter, Doherty, Best and Gottfried as the 2008/2009 Variance Board to serve in such capacity from July 2, 2008 to May 6, 2009. Roll Call Ayes: Willmus; Ihlan; Pust; Roe and Klausing. • Nays: None. n. Approve a Request by Aeon for an extension to their Rezoning, General Concept Planned Unit Development and Preliminary Plan Approval for the Har Mar Apartments (PF07-068) Pust moved, Ihlan seconded, adoption of Resolution No. 10632 entitled, "A Reso- lution Approving an Extension to the Filing of a Final Plat and Final Develop- ment PUD for Aeon and the Har Mar Apartments, 2225 to 2265 S Highway 36 Service Drive (PF07-068);" approving a six (6) month extension. Roll Call Ayes: Willmus; Ihlan; Pust; Roe and Klausing. Nays: None. o. Reject a Bid for W-08-10 Watermain Replacement Project Mayor Klausing asked what happened to the proposal for cooperation among other municipalities in use of this new technology. Public Works Director Duane Schwartz advised that the City of Edina was the only one who had been interested in moving forward at this time; and when bids had come in, had determined that they could replace their streets and water mains for that amount of money, and withdrew further interest at this time. Regular City Council Meeting Monday, June 9, 2008 Page 9 • Mr. Schwartz advised that he would be meeting with a representative of low bid- der tomorrow to discuss the higher-than-expected bids received, discussion of risks involved with this new technology, and determination of why the bids came in so much higher than projected. Mr. Schwartz noted that there were only two (2) firms using this technology, and even while preferable due to minimized dis- ruption to property owners, it was not feasible at this time. Mr. Schwartz advised that staff was pursuing other technologies; and opined that the cost of this pro- posed technology would be reduced as it became .more familiar in this area. Councilmember Pust thanked staff for their due diligence and their responsible recommendation. Pust moved, Ihlan seconded, a motion rejecting the bids received for Watermain Replacement Project W-08-10. Roll Call Ayes: Willmus; Ihlan; Pust; Roe and Klausing. Nays: None. 8. Consider Items Removed from Consent 9. General Ordinances for Adoption • 10. Presentations 12. g. Receive the 2009 - 2013 Strategic Plan City Manager Malinen briefly reviewed the City of Roseville 2009-2013 Strategic Plan as prepared by staff and presented at the May 19, 2008 City Council meet- ing. Klausing moved, Ihlan seconded, approval of the 2009-2013 City Department Strategic Plan as presented. City Manager Malinen suggested that the City Council, after their review, set aside a substantial block of time at an upcoming meeting for further discussion, further refinement, and clarification of priorities for longer-range planning using this annual document. Councilmember Pust requested that the departments be synthesized for a more standardized process. Councilmember Pust opined that this was a good first step, and expressed appreciation to staff for their efforts; however, opined that it was still rather department-concentric now combined into an overall document, but the next phase would be to compare each department's plan internally for a strategic look, rather than along-term wish list of all departments. Regular City Council Meeting Monday, June 9, 2008 • Page 10 Councilmember Roe concurred with the comments of Councilmember Pust, not- ing that it was apparent that several departments had forms of their strategic plan in place, and those stood out in the presentation and didn't quite match the stan- dardized formation or verbal presentation on May 19, 2008. Councilmember Roe suggested that staff work on the consistency across departments as a way to syn- thesize information and get it more concise. Councilmember Ihlan thanked City Manager Malinen and staff for undertaking this strategic plan; opining that it was a good first step, and that she'd found the presentations further enlightening. Public Comment Al Sands, 2612 Aldine Mr. Sands opined that it was good to see five Councilmembers back on the bench. Related to the strategic plan, Mr. Sands opined that he appreciated the Council comments; and further encouraged the City Council to go slow and get it right. Roll Call Ayes: Willmus; Ihlan; Pust; Roe and Klausing. Nays: None. 13. a. Capital Improvement Plan (CIP) Finance Director Chris Miller advised that the CIP included in tonight's packet was a draft prepared in accordance with the goals and strategies identified in the Imagine Roseville 2025 initiative and those identified by the City Council earlier this year. Mr. Miller noted that a full and more detailed CIP would be presented to the Council at their June 30, 2008 meeting. Mr. Miller reviewed the antici- pated need over the next 10 years to replace existing vehicles, equipment and in- frastructure, and allow purchase of new assets to enhance the City's programs and services in an amount estimated at $100 million. Mr. Miller also noted the antici- pated funding gap that would allow approximately $30 million to facilitate those needs and requiring priority challenges, and identifying new funding sources that wouldn't directly impact property taxes. Councilmember Ihlan requested additional analysis by staff prior to the June 30, 2008 discussion on the impacts to the CIP in light of new legislative levy impacts over the next three years .limited to 3.9%. Councilmember Roe questioned if this CIP included normal Pavement Manage- ment Plan (PMP) costs or indicated new construction only; with Mr. Miller re- sponding that a vast majority of the CIP was replacement of existing infrastruc- ture costs. Councilmember Roe noted that a new fire station did not exist and that there may be other mitigating factors or other funding sources that could be iden- tified. • Regular City Council Meeting Monday, June 9, 2008 Page 11 • Councilmember Roe requested, by the June 30, 2008 meeting, a breakdown of new spending and maintaining existing infrastructure. Councilmember Pust noted that there may be other policy decisions imbedded within the CIP document (i.e., whether to build a new fire station) that needed to identified and segregated for the public. City Manager Malinen noted that other items, such as the license center facility, was another level of the detail staff was trying to put together in order to include all the significant pieces of the CIP; advising that staff was attempting to develop a summary page for each of those major items to facilitate City Council discus- sion and decision-making, including potential types of funding mechanisms; tim- ing, amounts, and their magnitude. Councilmember Roe noted that the City Council had the ultimate approval author- ity for those items remaining on the list of possible expenditures, and those sub- ject to removal. Mr. Miller concurred, clarifying that the CIP was intended as a planning docu- ment, not a budget appropriate request. • 12. d. Geothermal Funding Plan Finance Director Chris Miller reviewed the requested City Council action for a resolution approving a funding plan, as recommended by staff, for the arena re- frigeration system. Mr. Miller noted that staff had originally recommended a temporary loan from the City's Street Infrastructure Replacement Fund; however, given the current estimated cost of the project between $1.5 and $2.4 million, staff was no longer making that recommendation. Staff currently recommends that the City borrow money through the issuance of equipment certificates, with a detailed description of their use provided in the staff report; for repayment over a 10 year period, and issued without voter approval, but otherwise similar to a bond issue. Discussion included impacts to a typical single-family home owner of $10.00 per year, or a total of $100 for the 10 year term of the issue, representing a 1.8% levy increase on top of any other levy increase for general operations or other pur- poses; timing of an issue; and the need to adopt a resolution within the next 60-90 days simply signaling the City's intent to issue equipment certificates. Councilmember Willmus sought clarification on the difference in debt service of a General Obligation (GO) bond issue or equipment certificates. Mr. Miller advised that there would be no difference, with either based on the full faith and credit of the City and within the same bidding environment. • Regular City Council Meeting Monday, June 9, 2008 Page 12 Councilmember Pust questioned the timing of the certificate issue, if needed im- mediately in order to not delay the project, or if it could be done within the course of the project. Councilmember Pust further questioned if Mr. Miller saw any eco- nomic factors that would bear on interest rates and provide a reason to wait on the issue. Mr. Miller advised that the City could bankroll the project for some time, up to several years, which may allow some flexibility. Mr. Miller advised that he saw nothing on the economic front that would indicate waiting would be prudent, and recommended that the issue be done sooner, rather than later. Councilmember Ihlan noted previous conversations with staff regarding waiting a year to decide on the geothermal project, with the possibility of keeping the skat- ing center open and operating, with the possible risk of repair costs of $50,000 or less, with those funds available in the Building Fund. Councilmember Ihlan, given the magnitude to fund this project properly, opined that waiting to fund it had merit, and would not require that the City be committed to the full geothermal project until further costlbenefit analyses had been completed. Councilmember Pust noted that the cost of going the next step was included in previous staff reports; and opined that the costs would be incurred, whether con- • ventional or geothermal, and by moving forward now it could keep taxpayer costs as low as possible, while providing along-term strategy to move away from envi- ronmentally and costly attributes (Freon systems). Councilmember Roe provided clarification from that previous referenced report, noting that the estimated costs for the overall project for the Public Works and City Hall facilities without geothermal was $1.1 million, and the full geothermal cost was estimated at $2.2 million. Councilmember Roe opined that, if the project were to proceed without issuing equipment certificates, the City would need to borrow from its current reserves, and pay themselves back with the certificates when issued, but would require going against recently established policies on re- serve balances. Councilmember Ihlan advocated for waiting until 2009 to start the process while additional analysis was being done to ensure that the payback numbers and long- term positive environmental affects were evident and that rationale could be pro- vided to citizens. Councilmember Ihlan opined that the entire project may be a great idea; however, cautioned going forward at this time without a more exhaus- tive analysis in place. Councilmember Pust noted that the actual taxpayer cost of $10/year, or an overall ten year cost of $100 was what taxpayers were being asked to support with this action. Regular City Council Meeting Monday, June 9, 2008 Page 13 Mayor Klausing questioned if there would be any further savings realized by go- ingbeyond the arena itself. City Manager Malinen opined that, by authorizing this contract, it didn't commit the City to doing additional geothermal in the campus, but that it would just be putting the wells and field in place for that potential expansion above and beyond the existing arena; and would save costs for additional mobilization and any re- bidding of future field work and soil borings. Mr. Malinen advised that by doing the work now, it provided a benefit for redundancy for the existing system, while allowing future expansion of the system in the long-term. Councilmember Ihlan opined that by issuing equipment certificates, it would ce- rate anopportunity for the City to go around the levy limit and proceed without voter approval. Mr. Miller advised that either a General Obligation Bond or an Equipment Cer- tificate issue was appropriate for this project and was more of a philosophical dis- cussion; however, noted that the City would be bound by the wishes of the voter, whether to proceed or not to proceed, and may create a challenge as to the future operations of the arena and existing equipment failure. Councilmember Roe noted that the equipment certificates would be used for the purpose of maintaining an existing facility, not building a new facility. City Attorney Jay Squires briefly spoke to the general provisions of Minnesota Statute Chapter 475 on incurring debt, noting that equipment certificates were an exception, giving authority to the City Council in such a circumstance as this to utilize this funding tool. Public Comment Al Sands, 2612 Aldine Mr. Sands urged the City Council to seek voter approval as a standing policy, and not to exclude voters when committing their funds. Mr. Sands opined that the City should do the project, then issue the certificates. Mr. Miller advised that an option would be to wait until after the project had been completed before issuing the certificates. Councilmember Ihlan suggested that the City issue a General Obligation Bond in the future covering more than one project, with voter approval. Mr. Miller advised that he would need to seek advice of the City's bond counsel before making a recommendation on a bond issue with a large disparity. City Attorney Squires opined that, in theory, the City would be seeking voter ap- proval for voter debt, and seeking authorization for various projects; however, if Regular City Council Meeting Monday, June 9, 2008 Page 14 the City chose not to undertake a portion of the project, it would make more sense to issue two separate bond issues, given the immediate needs and those antici- pated in 2013. Mr. Miller clarified that, if all of the dollars issued were not needed, it was typical that the excess be used to pay off the debt service earlier, and not given back to the lender. John Kysylyczyn, 3083 N Victoria Street Mr. Kysylyczyn questioned if equipment certificates were paid back on market value of property or net property calculations. Mr. Miller responded that they would be based on net tax capacity; noting that impacts to business and homeowners were different, and reiterated staff's recom- mendation for an equipment certificate issue rather than a GO bond. Mr. Kysylyczyn questioned current interest rates for borrowing money versus any loss in interest if the City were to use internal monies to fund the project. Mr. Miller advised that, based on the current interest environment and current bond ratings at 4.25%, the City's investment portfolio was earning in excess of 5% in interest. Tam McGehee, 77 Mid Oaks Lane Ms. McGehee offered her support of the comments of Mr. Sands and those of City Manager Malinen; opining her support of geothermal energy. Ms. McGehee noted her previous request, during construction of Public Works building and City Hall renovation, that geothermal systems be considered. Ms. McGehee spoke in support of bonding for a sufficient amount to do the arena project now and for re- placement of existing units with geothermal units as needed to ensure that the best possible system is in place; however, spoke in support of GO bonds with voter approval, rather than attempting to "slip it under the radar screen." City Manager Malinen noted that one of the major concerns in staff's recommen- dation not to wait was the condition of the current system potentially beyond its useful life; and that the minimal cost for the additional borings to support future expansion was incidental. Mr. Malinen noted the cost to the City and its user groups if the current system were to fail and the skating center had to be closed for lengthy repairs, at which time repair of that current system, with the Freon, would cause further long-term costs. Mr. Malinen clarified that the recommended financing plan was to recognize all those factors, to keep the arena going, while asking the City Council to make a decision for additional borings at the same time to serve the existing arena and make it better, and for the potential to move for- • ward in 2013 with another campus conversion. Regular City Council Meeting Monday, June 9, 2008 Page 15 Mayor Klausing concurred with the comments that it was not good policy to ex- clude the public in decision-making, but noted the numerous ways the public had access to voice their opinions to the City Council and the length of time this issue had been debated. Mayor Klausing however, disagreed with the opinion that unless the City Council went to the public with every decision the Council was not involving the public. Mayor Klausing noted that the public had provided their comments through several different opportunities, and their support of environ- mental and green development, and their support of community assets such as the OVAL. Mayor Klausing opined that the public expected the City Council to ex- ercise good decision-making and judgment, not timidity. Mayor Klausing opined that there was not advantage to waiting; and recognized the proposal recom- mended by staff, offering his support of the project. Councilmember Roe concurred with the majority of Mayor Klausing's comments. Councilmember Roe opined that, while it may seem prudent to wait for a year and go before the voters with a bond referendum, he saw no indication that costs would be reduced next year, and that by waiting a year, costs could further esca- late. Councilmember Roe noted that this was for maintaining and enhancing an existing facility, rather than a new facility of addition, and that staff had identified costs and provided a funding mechanism for the project. Councilmember Roe opined that the City Council needed to be careful that they remained stewards of • taxpayer money and avoid cost increases; noted the potential risk with a possible breakdown with existing equipment; or temporary replacement of the chiller and those costs, in addition to potential cost increases by waiting another year, he spoke in support of moving forward with the proposed funding plan. Roe moved, Klausing seconded, adoption of Resolution No. 10633 entitled, "Resolution Authorizing the Funding Plan for the Replacement of the Arena Re- frigeration System." Councilmember Ihlan opined that the City could wait until next year to determine the parameters of risks; that full costs were unknown for completion of the entire project; precise risks were unknown; that indications were that operating the ex- isting system could continue for one more year with funds available for any an- ticipated repairs. Councilmember Ihlan noted the need for inclusion of this item in the CIP to provide rationale for taxpayers and to determine how it fit into other CIP priorities. Councilmember Ihlan, while supporting the overall project, opined that she didn't feel this was the right thing for the City Council to commit to at this time; but that by waiting a year, more pieces would be in place, and provide additional opportunity for public comment. Councilmember Willmus noted the minimal difference in the costs fora conven- tional system and geothermal replacement for the arena; and further noted that one year ago, the City Council made a conscious decision to go with geothermal, and that the current system at the arena had been patched up to keep it running. Regular City Council Meeting Monday, June 9, 2008 • Page 16 Councilmember Willmus opined that the City couldn't afford to wait another year; noted that the ice arena generated revenue when segregated from the OVAL, and offered his support for the proposed project. Councilmember Pust noted that, while not yet incorporated into CIP document presented earlier tonight, this issue had been one consistently brought forward as one of the most immediate Capital needs in the community; and opined her assur- ance that the project would rank high in the eyes of the community and staff. Councilmember Pust noted that the proposal was not for additional equipment, but was to include additional bore holes to make the field large enough for future expansion; and opined that such a provision made sense. Councilmember Pust opined that, by waiting another year, it would only serve to create larger risks in mechanical issues and potentially shutting down the arena for repairs. Council- member Pust further opined that it was time to move forward, or accept such a major risk, and noted that this was an important facility to the community, and provided a direct service for youth in our community. Councilmember Pust agreed that neither staff or the City Council was able to predict what was going to happen with the economy, or if it would be less expensive to wait a year; how- ever, she noted that continuing to operate a system on Freon was not going to get less toxic to the environment. Councilmember Pust recognized the citizen charge to invest in protecting the community and environment, and opined that this was • an opportunity to do so. Councilmember Pust opined that she would generally be in favor of putting such a decision before a vote of the people; however, on this issue, she expressed confidence that she'd heard enough from them on the envi- ronment and economy and the need to act now, that she was comfortable that the citizens would support a $10 annual increase in their taxes over the next 10 years to bring this facility forward; and further opined that, if she misjudged that public sentiment, the voters would express their sentiments to the City Council now. Roll Call Ayes: Willmus; Pust; Roe and Klausing. Nays: Ihlan. Motion carried. 12. e. Adopt a Resolution Acknowledging the City's Intent to Issue Equipment Certificates Finance Director Miller noted that this step would ensure that all costs, moving forward from today for this project, would be eligible for reimbursement under the Equipment Certificates. Roe moved, Klausing seconded, adoption of Resolution No. 10634 entitled, "Resolution Establishing Procedures Relating to Compliance with Reimburse- ment Bond Regulations Under the Internal Revenue Code." Regular City Council Meeting Monday, June 9, 2008 • Page 17 Councilmember Ihlan advised that she would be voting against the motion, opin- ing that it was not the right funding mechanism; and that a better risk to taxpayers would be to spend $50,000 in the budget rather than $2 million. Roll Call Ayes: Willmus; Pust; Roe and Klausing. Nays: Ihlan. Motion carried. 12. f. Consider Authorizing a Geothermal Contract Parks and Recreation Director Lonnie Brokke presented a summary of the request for Council action dated June 9, 2008 for consideration of a contract for the skat- ing center arena geothermal project. Discussion included contract provisions and any revisions; redundancy in addi- tional well holes; rationale for staff seeking authority to execute the additional contract language based on pending negotiations between the City and contractor; and the City Council's desire to be involved in whether to go forward with the additional holes or not. The contractor agreed to provide staff with the additional costs, following nego- tiations, at a future June meeting, preferably the June 16, 2008 meeting. Klausing moved, Willmus seconded, authorizing the Mayor and City Manager to enter into an agreement with Harty Mechanical to install a "full" geothermal sys- tem at the Roseville Skating Center Arena for an amount not to exceed $2,217,400, plus a $225,000 contingency, pending final approval of documents by the City Attorney. Roll Call Ayes: Willmus; Ihlan; Pust; Roe and Klausing. Nays: None. Klausing moved, Ihlan seconded, authorizing the City Manager to approve the cost of the additional wells necessary to be prepared for the next phase of the campus geothermal plan as understood and presented and included in the contract amount, based upon relative per foot and per hole costs, as appropriate, amended to read: subject to final City Council approval. Roll Call Ayes: Willmus; Ihlan; Pust; Roe and Klausing. Nays: None. Mr. Brokke introduced Bill Karges from KGI and members of his team, serving as architect and engineers for the project; and Patrick Harty from Austin, MN, contractor for the project. Regular City Council Meeting Monday, June 9, 2008 Page 18 Mr. Karges thanked Councilmembers for the special relationship and opportunity to work on this project; and invited Councilmembers to visit their LEED certified offices in Roseville. Mr. Karges expressed his appreciation in working with staff; and the opportunity to go to Arizona State University for the best value training; and assured the City of his firm's due diligence and encouraged them to contact him at any time with questions or comments. Mr. Harty thanked the City Council as well; and noted that the best value process was a new experience for all involved; and assured Councilmembers that they would make every attempt to provide the requested costs to them by mid-week for the next Council meeting. Mayor Klausing noted that this was a major project for the City; and expressed the City's interest in working with the firms. Mayor Klausing offered to take Mr. Karges up on touring their facility. Mr. Brokke thanked City Attorney Squires for his work in coordinating the best value process with Arizona State. Mayor Klausing thanked Mr. Brokke for his work on this major project. 11. Public Hearings a. Public Hearing for Community Input on the 2009 Budget Mayor Klausing opened the Public Hearing at 8:05 p.m. Public Comments Tam McGehee, 77 Mid Oaks Lane Ms. McGehee expressed her wishes that the City Council would seek substantial contributions, similar to the Cities of Edina or Bloomington, to the retail and commercial community for city services (i.e., police services). Ms. McGehee noted that the majority of the City's crime was not perpetrated by Roseville citi- zens, but through the clientele of those retail and commercial establishments, and thus, they should compensate the City accordingly. Ms. McGehee expressed similar comments related to continued expansion of Northwestern College off campus, and used the example of the City of Northfield and the annual contributions of Carleton and St. Olaf Colleges to compensate the City for general wear and tear of their students in the community. Ms. McGehee noted recent purchase by Northwestern College of three apartment buildings across Snelling Avenue, the Edina Realty building, the car dealership where KTIS Radio is now located; and their continued encroachment on City property and the City's tax base, and the need for them to pay their fair share. Ms. McGehee ad- dressed issues that came up during the most recent land use case for Northwestern Regular City Council Meeting Monday, June 9, 2008 Page 19 College and the uneven burden that the College and the Cit of Arden Hills was Y placing on the City of Roseville's infrastructure, traffic and parking situations. Ms. McGehee opined that this was a private college that did not serve the City of Roseville, with only two students from Roseville currently at the college; and asked that the City Council look into protecting its taxpayers. Al Sands, 2612 Aldine Mr. Sands thanked City Manager Malinen for the opportunity of this hearing and to think outside the box. Mr. Sands referred to his business experience and en- couraged staff to continue to focus on the City in finding additional economies. Mr. Sands encouraged the City Council to make comparisons with other cities to determine inconsistencies; encourage more Joint Powers Agreements with other cities in areas where the City had special expertise available to market; and sug- gested possible consideration of expanding Ramsey County police services to other municipalities such as Roseville for additional and cooperative cost saving measures. Mayor Klausing encouraged citizens to feel free to provide Councilmembers with additional revenue sources and other specific ideas for the Council's further re- search and pursuit. . John Kysylyczyn, 3083 N Victoria Street Mr. Kysylyczyn noted that the program referenced by Ms. McGehee was the "PI- LOT" program (Payments in Lieu of Taxes); noting that in using such a program, those parties needed to be given a seat at the table. Mr. Kysylyczyn provided a history of previous year opportunities for public comment related to the annual budget process; expressed concern in the 1.8% levy increase adopted earlier this evening, and the need to remind people of that when considering the annual tax levy and any proposed levy increases; noted the need to recognize mandatory fees as a tax, and their consideration as such as part of any levy increase rather than shielding it. Mr. Kysylyczyn further suggested the need to review the current Police Department daily practice of taking un- marked squads home and out of the community and whether this was a good value with current gasoline prices; encouraged cutting of "stupid spending," such as metal brackets on light poles for RVA banners and where such an expenditure fell in the ranking of strategic goals when there was an existing $5 million back- log in the City's park system for repairs. Mr. Kysylyczyn also questioned the continued water subsidy program to make working families subsidize senior citi- zen water bills without income guidelines in place, and whether that was a good environmental policy or whether it taught water conservation. Mr. Kysylyczyn further questioned the cost of the leaf pick up program to all taxpayers, when so few participated in the program and it was provided by other private contractors. ~'1 Regular City Council Meeting Monday, June 9, 2008 Page 20 Mr. Kysylyczyn concluded his comments by referencing an election flyer from a past election (2004) and questioned why each year there had been a levy increase that was double the rate of inflation, and suggested that a more fiugal organization was needed with smart thinking and spending. Eugene Bahnemann, 2656 N Lexington Avenue Mr. Bahnemann, based on his personal observations as a neighbor to the City Hall campus, strongly encouraged the City to consider additional conservation meas- ures on the City Hall campus related to outdoor and indoor lighting. T Mayor Klausing closed the Public Hearing at 8:25 p.m. 12. b. Consider Request by Metro Transit for a Park and Ride Sketch Plan Review for 2750 Cleveland (PF08-021) Community Development Director Patrick Trudgeon introduced Mr. Pat Jones from Metro Transit for presentation of a sketch plan to construct a Park and Ride facility at 2750 Cleveland Avenue, formerly the Old Dominion Freight Line prop- erty. Mr. Trudgeon advised that this sketch plan had been presented to the Planning Commission last week for their initial concept and that draft minutes of that meet- . ing were not yet available. Mr. Trudgeon noted that discussion at the Planning Commission level had included the compatibility of this proposal with the Twin Lakes Master Plan; impact of parking, with a traffic analysis pending as the pro- posal proceeds through the application process; and assurances sought by the Planning Commission that the project would fall within the parameters of Twin Lakes design guidelines to become an attractive and beneficial addition to the Twin Lakes area in this early stage of development of the area. Mr. Pat Jones, Metro Transit Mr. Jones provided an overview of Met Transit's existing Park and Ride facility locations, network, ridership survey, and ongoing development and increased use of the network over the last 10 years. Mr. Jones reviewed the existing Rosedale site, expiration of that lease in 2011, and potential plans for competing uses and shopping center trends being considered by Rosedale management. Mr. Jones advised that Roseville had been identified in long-range plans for an additional site due to increasing needs of riders in that area; however, noted that the timeta- ble for this project had been fast-tracked due to funds recently allocated by the Urban Partnership Agreement (UPA) of $133 million for three Park and Ride sites in the metropolitan area, with Roseville being one of those chosen sites based on access to the I-35W corridor and utilization of the sites in this area. Mr. Jones indicated that the capacity had been reached due to its successful use at • the Rosedale Park and Ride facility, and had resulted in creation of the two over- flow lots at Grace Church and the City Skate Center; and that the main goal of Regular City Council Meeting Monday, June 9, 2008 Page 21 UPA funding was to alleviate traffic on I-35W overall. Mr. Jones noted that UPA prerequisites and considerations for sites were based on location, user capacity and service, and availability of land for sale or redevelopment that would be con- ducive to a new facility. Mr. Jones reviewed in detail ridership survey informa- tion; proposed use of County Road C to route traffic to the proposed new location; access to and from the site for buses and customers; contact with several property owners in the Twin Lakes area and the unavailability of most of those properties in proposed development projects, with the exception of the Old Dominion site and ultimate coordination with Cent Ventures in securing some of the property and their flexibility in a development plan over the last 6 - 8 months of discus- sions. Mr. Jones noted that the Met Transit would propose to pay for construction of Iona, with the proposed structure located on the northeast corner of the prop- erty and eventual access on Iona, while current use would be accessed on Cleve- land Avenue. Mr. Jones reviewed the conceptual Site Plan; noting that keeping the structure's footprint as small as possible on the 1.27 acre site was important, in addition to realizing the tax issues for the City, and anticipated a capacity of 400-450 spaces in a 3 level ramp. Mr. Jones reviewed exterior elevations from other Park and Ride sites recently constructed in Minnetonka; Brooklyn Park; Coon Rapids; and in Bloomington near the Mall of America. Mr. Jones expressed willingness to • work with staff to come up with compromises as to aesthetics and function for all parties. Discussion included the process in Twin Lakes for a Planned Unit Development for all projects; revision of the plat to rearrange some of the lot lines to create the lot at the northeast corner; ownership of the land and ramp by Metro Transit as a requirement of the UPA, typical of most of their facilities; rationale for the loca- tion of the ramp in the NE corner of the site rather than closer the I-35W ramp in order to work within the development envisioned by staff and the developers; in- clusion of indoor space for passengers, as well as a drop off site and space for bike storage; current capacity of 375 spaces at Rosedale, which this could replace depending on lease extension negotiations in 2011; transit hub at Rosedale re- maining at least until 2017 lease expiration and results of those negotiations; and logistics for connections from the transit hub component and Park and Ride facil- ity. Further discussion included Mr. Jones confirming that Met Transit Council had authorized entering into a Purchase Agreement with the controlling party of the Old Dominion properties; timing of the proposal being pushed by the UPA grant, and the need to have a design and other work in place to begin construction at the start of 2009; future potential for an additional Park and Ride site on the south portion of the City, closer to Highway 36. • Regular City Council Meeting Monday, June 9, 2008 Page 22 Mayor Klausing opined that he was a big supporter of transit; however, noted that his biggest concern was how this design and traffic generation fit into the Twin Lakes vision. Councilmember Roe clarified signage, visibility, and access plans for the site for both buses and cars specifically prior to construction of Mount Ridge Road and the Twin Lakes Parkway; and opined that he wasn't as concerned from a land use standpoint, but had concerns with traffic generation issues and would anticipate very close consideration of those issues to ensure that more good than harm was evidenced by this particular application. Councilmember Roe opined that it made sense to have a transit facility in that area. Mayor Klausing expressed concern that the facility not look like a typical parking ramp; but that he would be much more receptive if it looked more attractive on the exterior. Councilmember Ihlan expressed appreciation to the applicant that they were minimizing the footprint and building up. Mayor Klausing concurred with Councilmember Ihlan's comments. Further discussion included pending grant programs at the state level that could possibly encourage transit-oriented development in the Twin Lakes area, with those funds difficult to obtain with a light rail line yet to be constructed to serve this area of the metro; and potential for some retail vendors in the facility. Councilmember Willmus questioned if there would be bus traffic between the Rosedale Transit Center unti12017 and the Twin Lakes site. Mr. Jones advised that he'd have to verify that with the Met Transit's service de- velopment staff and provide that information at a later date to staff and/or the City Council. Mr. Jones concluded comments by noting that one of the great things about a Park and Ride facility was that traffic to and from the site was self-metering depending on bus schedules, with 40 people arriving for transport at one time and disbursing before the next load arrived, and was more spread out, preventing peak times that may conflict with other uses. Mayor Klausing thanked Mr. Jones for his presentation. a. Consider Consultant Selection for Twin Lakes Infrastructure Improvement Design Work Public Works Director Duane Schwartz, City Engineer Debra Bloom, and Com- munity Development Director Patrick Trudgeon presented results of the evalua- Regular City Council Meeting Monday, June 9, 2008 Page 23 tion by staff of the Requests for Proposals authorized by the City Council in March of 2008 for consultants to complete design work for the municipal infra- structure improvements within and adjacent to the Twin Lakes AUAR Subarea I. Mr. Schwartz advised that five proposals had been received, all from very quali- fied firms for the project type, with two firms having been selected by the evalua- tion team for interview. Following those interviews, staff now recommends to the City Council the firm of WSB & Associates at an amount not to exceed $458,036.00 as detailed in the Request for Council Action dated June 9, 2008. Discussion included the ever-changing projects in early stages of development or negotiation; continued interest of the development community; and the need for more precise information to set elevations, determine location of infrastructure, and other issues to facilitate that development. Staff noted the lengthy process for the design work prior to construction itself, with anticipated timing for any future construction in the spring of 2008 for those development projects already in proc- ess. Mr. Trudgeon advised that funding for the design work was proposed to be taken from Tax Increment District No. 11, followed by reimbursement from de- velopers based on AUAR infrastructure payment allocations. Councilmember Ihlan, while supportive of the City taking the lead role in coordi- nating design, expressed concern with the scope proposed to encompass all of Area 1 at this time, when the most interest is on the western edge; and opined that some of the envisioned services may be premature at this point. Councilmember Ihlan further opined that the City had a long history in the Twin Lakes area of spending hundreds of dollars on consultants without those plans ever being used; and spoke in support of moving forward with only those pieces known at this time. Mayor Klausing polled Councilmembers on their interest in pursuing a segmented process as suggested by Councilmember Ihlan, with Councilmembers not sup- porting such a process. Councilmember Pust noted that Councilmember Ihlan had laid out the issues and her concerns at various times in the past; but opined that development was going to happen, and it was prudent for the City Council to achieve the overall design in the most cost-effective way possible. Councilmember Ihlan reiterated her concerns in not staging the design work. Mayor Klausing noted the discussions held on numerous occasions, and Council- member Ihlan's advocacy for a more segmented process; however, noted that on multiple occasions the conclusion of the Council majority had been that from a design sense, it made more economic and development sense to complete the en- tire design process for Area I at once. Regular City Council Meeting Monday, June 9, 2008 Page 24 Councilmember Ihlan opined that this was an area of fiscal responsibility for the City Council; and that as a taxpayer she didn't like spending or wasting money, and was only trying to prevent that by authorizing pieces as they became neces- sary and as projects came forward. City Manager Malinen noted discussions held at a staff level, and some of the is- sues driving staff's recommendation, was that set points on Cleveland and Fair- view Avenues needed to be established from an engineering point to create eleva- tions for various development pieces at this time, and as consistent with the City's Comprehensive Plan and Twin Lakes Master Plan guidelines. Mr. Malinen ad- vised that it was difficult to determine locations for development, and how to get from Point A to Point B without an overall layout. Mr. Malinen acknowledged that all of the infrastructure would not be constructed at one time, but assured Councilmembers that this would allow the City to be more responsive to develop- ers, no matter where their proposed location was, if that engineering work was in place; thus this recommendation by staff. Councilmember Roe noted that, as discussed earlier, things don't get less expen- sive by waiting; and questioned whether this may be more of an effort, based on expressed concerns of the residential neighborhood, to remove the possible con- nection for Twin Lakes Parkway through the neighborhood and perceived traffic impacts to those neighborhoods. However, Councilmember Roe opined, in the in- terest of obtaining the best value for taxpayer monies, supported the overall de- sign work at this time, based on the AUAR and development proposals, and po- tential for development and the reliever route of the Parkway. Councilmember Pust opined that the recommendation was for design work that would impact the entire site, not construction; and further opined that Council- member Ihlan's arguments made sense from a construction standpoint, but not a design standpoint, and that the cost-effectiveness weighs out. Klausing moved, Roe seconded, approval of a contract between the City of Rose- - ville and WSB & Associates to complete the design work for the Twin Lakes AUAR Subarea I Infrastructure Improvements; with the scope of the project de- tailed in the Request for Council Action dated June 9, 2008, for design services up to bid documents at an amount not to exceed $458,036.00; with Section V (actu- ally Section VI) Indemnification (page 1, lines 35-39) of the Consultant Ser- vices Agreement amended by City Attorney Squires to read: "Indemnification. The Consultant shall defend, indemnify and hold harmless the City and its officials, agents, and employees from any loss, claim, liability, and expense (including reasonable attorney's fees and expenses of litigation) arising out of any astiee-se+~i#~iAg • [consultant's performances] of the services of this contract." Regular City Council Meeting Monday, June 9, 2008 Page 25 Roll Call Ayes: Willmus; Ihlan; Pust; Roe and Klausing. Nays: Ihlan. Motion carried. 14. City Manager Future Agenda Review City Manager Malinen briefly reviewed upcoming agenda items. 15. Councilmember-Initiated Items for Future Meetings Councilmember Roe noted the addition of the potential Change Order for the Geothermal contract as part of the June 16, 2008 Council meeting. Councilmember Roe advised that he would be bringing forward proposed draft ordinance language related to the City's Special Election Ordinance at the June 16, 2008 meeting. 16. Adjourn The meeting was adjourned at 9:26 p.m. • • Regular City Council Meeting Monday, June 9, 2008 Page 26 ATTEST: 1 Willi Malinen, City Manager c Cra' D. Klausing, Mayor •