HomeMy WebLinkAbout2000/01/18 - ADMIN - Minutes - City Council - Regular IrjCITY OF OFFICIAL MINUTES
,rST LOUIS CITY COUNCIL MEETING
PARK ST. LOUIS PARK, MINNESOTA
January 18, 2000
1. Call to Order
Mayor Jacobs called the meeting to order at 7 35 p m
2. Presentations - None
3. Roll Call
The following Councilmembers were present at roll call Ron Latz, Chris Nelson, Sue Santa,
Robert Young, and Mayor Jeff Jacobs
Also present were the Deputy City Manager (Mr Pires), City Attorney (Mr Scott), Community
Development Director (Mr Harmening), Planning Associate (Ms Peterson), Public Works Director
(Mr Rardin), Police Chief(Mr Luse), Fire Chief(Mr Gill), and Recording Secretary (Ms Olson)
4. Approval of Minutes
4a. City Council Meeting of January 3, 2000
The minutes were approved as presented with the following changes
Page 7, Item 6, Paragraph 4, change "briefly" to "extensively" Delete Item 11b since it is
duplicative of Item 8c
Clint Pires, Deputy City Manager asked that the suggested corrections by Council member Sanger
be added to the minutes Page 9, Item 6b, paragraph 9, add "must take down the billboard if the
billboard is not located on property being redeveloped She indicated that she did not believe that
the City had the power to require a property owner to buy nearby property and to remedy this sort of
problem on property that was not being redeveloped "
4b. City Council Study Session meeting of December 13, 1999
The minutes were approved as presented with the following changes
Page 14, Item 1, Paragraph 9, change "Councilmember Nelson questioned whether the zoning
would allow block 3 to share required parking with block 2 Ms Jeremiah responded that some
percentage of shared parking is allowed She stated all that is publicly subsidized is not necessarily
maintained in public ownership"
4c. City Council executive session minutes of December 13, 1999
The minutes were approved as presented
Council Meeting Minutes -2- January 18, 2000
5. Approval of Agendas
a. Consent Agenda.
It was moved by Councilmember Nelson, seconded by Councilmember Santa, to approve the 111
consent agenda The motion passed 5-0
b. Agenda
It was moved by Councilmember Nelson, seconded by Councilmember Santa, to approve the
agenda The motion passed 7-0
c. Resolutions and Ordinances
By consent, Council waived reading of resolutions and ordinances
6. Public Hearings
6a. Public Hearing to Consider St. Louis Park Police and Fire Pension
Consolidation Accounts
Mr Luse, Police Chief presented a staff report He noted that both Mr Gill, Police Chief and Mr
Luse, Police Chief are currently active members of the PERA pension and both intend to retire
under those benefits and that they have been previous members of and contributors to the former St
Louis Park Police and St Louis Park Fire Departments' Pension Consolidation Accounts being
considered under the MN Law 1999 Chapter 222, titled Omnibus Retirement Bill
Mayor Jacobs opened the public hearing
Dave Smith, Police Department, elected Union Steward for Police Patrol Union, speaking on behalf
of the three unions (fire fighters, police patrol, sergeants) He stated we are united in our position
on this issue He presented some additional background information on MN Law 1999 Chapter,
titled Omnibus Retirement Bill He stated that Chief Gill and Luse in their memo of January 10th
submitted to the Study Session, agenda item 12 stated that the development of this bill was highly
participative I would say that by nature omnibus bill is highly compartmentalized and has factional
following only the parts to that pertain to those pertain to those interest groups and is actual not
participative in nature In this case the police and fire unions lobbied and followed the portion of
the bill pertaining to the reduction of contribution amounts by employees It was the League of
Cities, acting on behalf of the cities of Bloomington and other similar cities with relief association
surpluses that lobbied for the portion of the bill that is being addressed here In my contacts with
retired and active members of the relief associations I know of no one who has told me that they
were notified, contacted or informed of this part of the pending legislation The language of this
portion of the law is therefore in favor of the City's interest and not the retirees Several former
legislators have also informed me that they seldom have time to review omnibus bills in their
entirety They are familiar with bills or portions there of that they sponsor or are lobbied directly
for In this case specifically, representative Rhodes worked with us on the contribution reduction,
but did not mention the relief association surplus to us at any time during our contacts Our first
exposure was after the law was passed and members of the unions had a chance to read the bill on
its entirety Retirement legislation is very complicated and it has taken this long for the unions to
gain a base familiarity with the new law I believe that is why in part that the legislature has
required public hearing on this matter
Council Meeting Minutes -3- January 18, 2000
Mr Smith stated that secondly, in the,unofficial minutes of the study session from December 13,
1999 the City Manager is quoted as stating "the surplus is the tax payers money" Research on that
topic shows that to be only partly true The relief association accounts were funded both from
employee and City contributions as outlined in our memo that I presented previously, the employees
voluntarily increased their contribution amount to meet the requirement of being fully funded by the
year 2010 Again, this helped result in the St Louis Park accounts being two of the best funded in
the State at the time of consolidation The City's contribution, however, was not 100% tax dollars
from the citizens of St Louis Park The City has also received funds from insurance companies, the
State and police auctions that has been allocated and dedicated to be used to pay its portion of the
funding requirement for pension accounts A portion of that amount has been tax dollars, true, but
the amount of tax dollars is closer to the amount that the employees contributed themselves
Mr Smith stated that thirdly, I only received copies of the state attorney general's and state
auditor's opinions as outlined in the memo that was requested by West St Paul which indicated that
they support the use of the residual for retirement benefit as a legal use of the money per the statute
and other state laws He stated that the unions believe that the intent of the law was to have the
cities provide a detailed plan to the State Auditor as opposed to a general plan The unions would
like to therefore see the plan include the initiatives that the staff presented in their study session
memo, that the excess will be used to fund training, technology, employee development and capitol
outlay not covered in the normal budget process, but the primary purpose we feel the plan should
include is funding of a benefit for retirees, that being a benefit toward health insurance premiums
which at a minimum should cover the period from age 55 to age 65 As outlined in our memo, there
are State and Federal guidelines and laws that would appear to indicate that legally excess funds
should be allocated toward employee benefits before employer uses Moreover, there is the ethical
position that moneys allocated for retirement benefits at their initial contribution time should still be
used for that purpose when that fund contains excess amounts We ask the Council to approve a
plan that honors that commitment to the public safety employees of the City who sacrificed for the
benefit for others as a matter of course I would propose that the Council table the motion to adopt
the plan as currently drafted by the staff, allow the staff to rework the plan to include details for the
expenditure of the surplus and specifically include a benefit for retirees
Paul Steinholber, 16517 Elm Circle, Minnetonka, Union President for the local fire department was
present and stated that he although he believed that the technology, training, capital outlay,
employee benefit is a wonderful avenue to spend the money, but we also believe that a lot of the
relief members paid in through their wages and deserve some credit for this
Mayor Jacobs closed the public hearing subject to right of the Council to reopen it at a future time
Councilmember Nelson asked for clarification when the term retirees was used when you are
talking about insurance benefits, are you talking about those currently retired or future retirees
Mr Smith stated that because of the size of the excess fund, there is a sufficient fund to allow an
equitable division of that interest money between the staff's proposed plan and a benefit for current
retired members who are between the age 55 and age 65 to allow a health premium to be paid to
them as a benefit out of that interest money
Councilmember Nelson clarified that the Mr Smith was talking about creating a new obligation for
the City for presently retired members He asked for clarification about the distinction between
existing retirees and future retirees
Council Meeting Minutes -4- January 18, 2000
Eric Willette, League of Minnesota Cities, stated that he believed an argument could be made that
while the State Auditor's letter states that the use of these assets for retiree benefits would fit the
purpose and the use of the State in terms of being a police or fire expenditure, that a case could be
made that it may not fit the public purpose Statute for public funds under which we operate
Councilmember Nelson reviewed the letters from Deno Howard, General Counsel and Erica
Jacobson, Assistant Attorney General and asked the City Attorney if the City doesn't have a present
obligation to a group (present retirees) for something that wasn't bargained for under the collective
bargaining agreement was it lawful for the City to start paying present retirees a new benefit
Mr Scott, City Attorney indicated that he has not examined this question and was not in a position
to give a definitive answer, but believes there is clearly an issue as to whether or not payments to
already retired employees would there be a public purpose and whether that would be a proper
expenditure
Mr Smith indicated that from the minutes from the last Council meeting minutes, in the City's
expenditure list, there was an item of a payment to Roger Landgren, retired police member for
insurance benefits
Councilmember Nelson believes that the question is that if we didn't have these residual funds
could the City start paying this lawfully to existing retirees and if we can, then it would be arguably
lawful to use these residual funds, but if it's not then we can't
Councilmember Latz asked the Police Chief to clarify the current payment to Roger Landgren
Mr Luse, Police Chief indicated that this deal was a one time offer that was made on a very specific
bracket of time for certain people who were allowed that benefit and were told it was only good for
only a window of time
Roger Arnson, retired police officer, stated that this package was offered twice to all City
employees
Mayor Jacobs asked where this surplus would have gone if there was not this legislation
Eric Willette, League of Minnesota Cities, stated that had this legislation not been passed, what was
in the Statute prior to this legislation was that at the time the funds cease to exist (at the time that the
last beneficiary or there survivor died) all the remaining funds would revert to the City for police or
fire purposes
Mayor Jacobs questioned if this surplus was all tax payer money and where did it come from
Eric Willette, League of Minnesota Cities, stated it was different for each of the consolidation
accounts and it has a lot to do with investment performance over the years, but believed a variety of
different sources went into the plan including significant employee contributions
Councilmember Latz asked if St Louis Park was one of the cities that made extra amortization
payments for years when the plans were under funded
Mr Willette, League of Minnesota Cities indicated he didn't have this information
Council Meeting Minutes -5- January 18, 2000
Mr Gill, Fire Chief stated that the fire fund was making lump sum amortization payments from tax
revenues as recently as 1995 to bring it up to full funding.
Councilmember Nelson asked if the members made additional payments as a contribution to the
amortization to assist in fully funding or making just their normal payments
Mr Gill, Fire Chief stated that the amortization payments came from the State of Minnesota When
the funds were closed to new members approximately 1980 in order to fund these by the year 2010
part of the agreement was that the State would help the cities, so during the course over the
Councilmember Nelson asked if the City assisted by making extra payments to fully fund these
plans
Mr Gill indicated that the City did, but not the employees
Mr Smith stated that in order for the relief associations to consolidate with PERA it required a vote
by the municipal governments to approve that and the City agreed to fully fund the former relief
association fund
Councilmember Young asked if the surplus could be returned to the general fund
Mr Willette, League of Minnesota Cities stated the City could use these funds to cover current levy
for police and fire purposes until the money runs out, but the City couldn't dust send a rebate check
to taxpayers He commented that in the last couple of years there has been incredible investment
performance
Councilmember Young stated that the City employees have already receive a cost of living increase
and investment enhancement has been favorable and there was no need to make it more lucrative by
also having the tax payer pick up the cost of the health insurance
Phil McNel, retired Fire Fighter, stated that fire fighters use to contribute more to the pension than
they do now, and some of the reason the pension is doing so well is that we gave more than at the
present time
Councilmember Latz stated that while he had sympathy for the request that was being made, he felt
constrained by the State Auditor's report and was in favor of adopting the resolution
Councilmember Nelson believed that there were many opportunities to use these surplus funds, but
couldn't vote to amend to add the fifth point dust for the reasons stated
Mayor Jacobs stated that he shared the same concerns as expressed by the Council and believed the
plan that was proposed was fiscally sound and supported the plan
It was moved by Councilmember Young, seconded by Councilmember Santa, to adopt a resolution
authorizing the return to the City of excess funding amounts in the former St Louis Park Police and
St Louis Park Fire Departments' Pension Consolidation Accounts and authorizing staff to submit
that resolution to the Minnesota State Auditor The motion passed 5-0
Council Meeting Minutes -6- January 18, 2000
6b. Public Hearing to consider Sale of City Property Located South of Jewish
Community Center 4326 Cedar Lake Road
Mr Harmening, Community Development Director presented staff report and recommended
approval of the first reading He explained that late in the process of negotiations with the JCC,
staff became aware that there was a former dumpsite in the area in questions and that it may be at
least partially on the City's property This dump apparently operated in the 1930's and 1940's and
was closed before the City acquired its property in 1954 Staff proposes to undertake additional
analysis in the coming days and will have a report and recommendation available to the City
Council as part of the second reading/approval of purchase agreement scheduled for February 7th
Mayor Jacobs opened the public hearing
Dave Carlson, 7006 W 23rd Street, stated that he has been a member of the Cedar Lake Park
Association and was concerned about the destruction of a very beautiful wooded area that is heavily
used by Cedar Lake park and trail users that serves as a beautiful buffer for the entire corridor He
stated that he doesn't want the City to lose or have this open green space altered to the detriment to
the citizens and even if this would be approved he would hope that that the Staff and Council would
establish a buffer to the proposed JCC expansion
Councilmember Young asked if it was included in the plan that the City retain a trail through the
property
Mr Harmening stated that the purchase agreement that has been drafted does retain an storm sewer
easement that we are also retaining on this site for future trail purposes
Paul Rosholt, 2925 Toledo Avenue South, asked if the JCC and the JCC users understand the
potential heavy traffic and what affect it would have on its parking lot
Mr Harmening indicated that the purchase agreement states that the JCC will agree to provide us
with the general license to drive over their property to maintain the existing storm water facilities
and to allow the City to construct a new stormwater pond and maintain the pond in the future, but it
also states that the final specific terms of the license will be agreed to prior to closing
Councilmember Santa asked if at a later date the JCC decided to sell the entire property to another
owner, would that license be conveyed
Mr Scott indicated that the license would exist regardless of who owned the property
Mayor Jacobs closed the public hearing subject to the right of the Council to reopen it at a future
date
Councilmember Nelson was concerned about the issue in finding that the land in question didn't
have no future public need He raised the issue of a need for a future road and since the parcel was
going to be used for parking, he suggested that the agreement be modified to designate a road and
utility easement of the same size which would preserve the right for future public needs
Councilmember Young asked if this would create an inability for the JCC to have adequate parking
Council Meeting Minutes -7- January 18, 2000
Mr Harmening stated that although there is not a formal proposal, some of the conceptual planning
does suggest using our property for parking that would encroach over some of the easements that
we would obtain He stated that the reason that staff didn't include a street easement throughout the
entire site is that through the years and various planning exercises, it has been decided that it didn't
appear to be necessary to have a road pass through that site since on the Minneapolis side there
really isn't anything that you could connect the road to pass into
Mayor Jacobs stated that he didn't have a problem with the lack of public purpose for a road in that
area
Client Pires asked Staff to comment on what the Comprehensive Plan stated in terms of the
Transportation Chapter for that area
Mr Harmening stated that the Transportation Chapter does not indicate the extension of a road
through this particular property and the Comprehensive Plan has guided this a civic use and does
state specifically that the possible use of City property in the area could be for the accommodation
of the JCC campus expansion
Councilmember Latz asked that how much land was conceived to be parking lot and how wide a
buffer would remain between the parking lot and the existing trail corridor
Jeff Bail, JCC representative indicated that plans are still being considered, but emphasized that the
JCC share all the concerns expressed and wants to make sure the property is as aesthetically
pleasing as possible
Councilmember Latz believed if it would have been convenient to put a road in this area it would
have been done a long time ago and doesn't have a problem in meeting a lack of a public purpose
test in this case
Councilmember Nelson believed that the City wouldn't lose anything by asking for a road easement
for the future public need
Mr Harmemng stated that staff will take another look at the road issue with the Public Works
Department and provide the Council with more information at the next meeting
Councilmember Latz asked what the findings were from the park land and open space task force for
that area
Mr Harmening indicated that the findings of the task force were that all or least some of this
property could be sold and used for something else besides a public purpose and would not be in
conflict with the action being taken
It was moved by Councilmember Latz, seconded by Councilmember Nelson, to adopt the first
reading of an ordinance that authorizes the sale of a portion of City owned property located south of
the Jewish Community Center at 4326 Cedar Lake Road and set second reading for February 7,
2000 The motion passed 5-0
7. Petitions, Requests, Communication- None
Council Meeting Minutes -8- January 18, 2000
8. Resolutions and Ordinances
8a. Request by Vladimir Velikson to allow restaurants with liquor as permitted
with conditions in the C-2, Commercial District
Case No. 99-13-ZA
Sacha Peterson, Planning Associate presented a staff report and recommended denial of the
proposed amendment to the Zoning Ordinance to allow restaurants with liquor as permitted with
conditions in the C-2 District
Cynthia Ahrens, 2944 Virginia Avenue South, stated she has been a resident of St Louis Park for
22 years and was concerned with the revision of the zoning ordinance that would place three liquor
establishments within a 1 /2 block area, inadequate parking, and that the shopping center access to
Minnetonka Boulevard and Texas Avenue is difficult and hazardous
Ms Peterson stated that these were legitimate concerns and pertain to a Conditional Use Permit
application for a restaurant with liquor so staff would address these issues if a CUP application was
received
Jim Yarosh, Attorney for Fine Management, believed that the existing text amendment would
adequately address some of the City's concerns related to this type of use at the Texa-Tonka
shopping center
Councilmember Latz believed that when a particular proposal for a use comes before the Council it
needs to be examined to see if it works for the entire City He believed the Council needed to make
a choice between tools that would make the proposal work for the particular proposal and the entire
City He supported the use of a CUP process for this proposal because the proposed text
amendment would have a dramatic affect on other parcels throughout the City and would not give
the Council the kind of control over how land would be used in other parts of the City that the
Council wished to retain
Councilmember Nelson was opposed to the proposed text amendment that would provide for uses
permitted with conditions and supported of the text amendment that would provide for a CUP which
doesn't require eliminating all of the nonconformities
Councilmember Santa concurred with Councilmember Latz and was supported the text amendment
that would provide for a CUP
Mayor Jacobs agreed with Councilmember Latz that this was a choice of tools to make an exciting
concept for a restaurant happen and supported the text amendment that would provide for a CUP
It was moved by Councilmember Latz, seconded by Councilmember Nelson, to deny the proposed
Zoning Ordinance amendment The motion passed 5-0
8b. Request by staff to amend nonconformities section of Zoning Ordinance
regarding Conditional Use Permits
Case No. 99-36-ZA
Sacha Peterson presented a staff report and recommended approval of the proposed text amendment
that would address the CUP for multi-tenant buildings
Council Meeting Minutes -9- January 18, 2000
Councilmember Latz stated that the question is after it has been decided what type of tools are
preferable for how the Council proceeds, the Council needs to decide how to fashion that tool and
its specifics so that hopefully that kind of use will work and it is in the best interests over all the
developments in St Louis Park He believed that this tool was preferable and was adopting in
whole the types of standards that are used in another part of the City ordinance which gives the City
and potential developers a better idea of what we are looking for and how to meet the standard in
the ordinance
Jim Yarosh, Attorney for Fine Management, was concerned about the interpretation of the new
language in the ordinance "to the extent reasonable and possible" He stated that the land owner
suggested that this criteria be incorporated right into the ordinance so that the applicant knows what
the staff and City will be looking at and the staff will be able to provide reasoned decision and
analysis in interpreting that very difficult phrase He stated that the landowner in this case has
already anticipated the cost of improving just the space and now depending on what is determined
to be reasonable or possible, one of the factors will be cost He provided the Council with a letter
from the property Jeff Fine He recommended that all the costs of the application fees for the CUP
be waived to the applicant given the extensive process he has been through
Mr Peterson, Planning Associate stated that staff continues to believe that it would be more
constraining and possibly create problems down the road to include the specific criteria in the
ordinance language
Councilmember Nelson asked how the intent of the Council was addressed in the ordinance to allow
a new tenant to come in and have a different use that might be subject to a CUP rather than having
an entire multi-tenant building come in and apply for a CUP under this ordinance
Mr Harmening reviewed Page 58, Paragraph F and the Exception of the ordinance
Councilmember Nelson stated that he interpreted that the exception was for multi-tenant building
and not just a particular tenant within a multi-tenant building
Mr Scott, City Attorney stated that the exception would only apply if one of the multiple tenant was
changing and agreed with Councilmember Nelson to clarify the language to state that the exception
only applies when "part of' a multi-tenant building is changing over to a different tenant and should
be changed before second reading
Councilmember Santa asked if it was in the code for special permits as to what the criteria are when
non-conformities have to be eliminated
Ms Peterson indicated that there wasn't any specific criteria currently in the code for special permit
amendments
Councilmember Nelson was in support of this proposed project, but was concerned about possible
public response as to why a particular project can't eliminate some non-conformities due to
financial concerns He stated that the cost of the improvement to the tenant was not fair since the
improvement to one portion of the building would influence the rest of the building
Councilmember Nelson referred to Mr Fine's letter and agreed that the Texa Tonka shopping
center was old and needed to be updated and believed higher rents could be charged for an updated
and more usable structure
Council Meeting Minutes -10- January 18, 2000
Vladimir Velikson, 1967 Waterford Court, Shorewood, commented on the human factor involved in
this extensive process and was concerned about the lack of progress on him personally and the
proposed project He stated that if the project collapses, the only winner will be Jeff Fine because
he will divide the parcel and find other renters without bringing any non-conformities into
compliance
Councilmember Latz commended and thanked Mr Velikson for his patience and perseverance
through this process and believed the outcome was a good policy for all of St Louis Park
It was moved by Councilmember Latz, seconded by Councilmember Nelson, to adopt first reading
of an ordinance amending nonconformities section of Zoning Ordinance and set second reading for
February 7, 2000 The motion passed 5-0
9. Reports from Officers, Boards, Committees
a. Pay Equity report
By consent, Council accepted report for filing
b. Human Rights Commission Minutes of November 17, 1999
By consent, Council accepted report for filing
c. Housing Authority Minutes of December 8, 1999
By consent, Council accepted report for filing
d. Planning Commission Minutes of December 15, 1999
By consent, Council accepted report for filing
c. Vendor Claims
By consent, Council accepted report for filing
10. Unfinished Business
a. Board and Commission Appointment(s) - None
11. New Business
11a. School Security Contracts
Mr Luse, Police Chief presented a staff report
It was moved by Councilmember Young, seconded by Councilmember Santa, to authorize the
Mayor and City Manager to execute contracts with School Districts 283 and 287 for police school
liaison services
Council Meeting Minutes -11- January 18, 2000
11b. Consultant Retention for Construction Surveying and Engineering Services for
the Hutchinson Spur Regional Trail
By consent, Council authorized the Mayor and City Manger to execute a Contract with SRF
Consulting Group, Inc (SRF) for Construction Surveying and Engineering Services for the
Hutchinson Spur Regional Trail
11c. Consultant Retention for Assistance in Design and Construction Inspection for
Six (6) Flood Problem Areas
By consent, Council authorized the Mayor and City Manager to execute a Contract with WSB &
Associates, Inc (WSB) for design and construction inspection services for six (6) flood areas
11d. Approve lease extension with MnDot for Webster Park
By consent, Council approved the lease extension
12. Miscellaneous - None
13. Claims, Appropriation, Contract Payments- None
14. Communications - None
15. Adjournment
It was moved by Councilmember Santa, seconded by Councilmember Young, to adjourn the
meeting at 9 40 p m The motion passed 5-0
Cit Clerk i