HomeMy WebLinkAbout2009/10/26 - ADMIN - Minutes - City Council - Study Session f/fSt. Louis Park OFFICIAL MINUTES
MINNESOTA CITY COUNCIL STUDY SESSION
ST. LOUIS PARK, MINNESOTA
OCTOBER 26, 2009
The meeting convened at 6:30 p.m.
Councilmembers present: Mayor Jeff Jacobs, John Basil!, C. Paul Carver, Phil Finkelstein, Paul
Omodt, and Loran Paprocki.
Councilmembers absent: Susan Sanger.
Staff present: City Manager (Mr. Harmening), Human Resources Director (Ms. Gohman), Finance
Manager (Mr. Swanson), Community Development Director (Mr. Locke), Economic Development
Coordinator (Mr. Hunt), Chief Information Officer (Mr. Pires), Communications Coordinator
(Mr. Zwilhng), and Recording Secretary (Ms. Hughes).
Others present: Telecommunications Advisory Commission (Mr. Hartman and Mr. Keeler),
LocalLoop (Mr. Torarp and Mr.Johnson), and Fiber Consultant (Mr. Pavek).
1. Future Study Session Agenda Planning— November 2 and November 9, 2009
Mr. Harmening presented the proposed study session agendas for November 2 and November 9,
2009. He noted that City Attorney Scott will present a proposed electronic signs ordinance at the
Special Study Session on November 2"d. He added that at the joint meeting with the School Board
the idea of partnering to install turf at the high school football field had been discussed. Mr.
Harmening asked if this was something staff should put on a future study session for discussion.
It was the consensus of the City Council that a discussion regarding artificial turf should be brought
to the Council when time permits.
Councilmember Paprocki stated he did not feel the City Council needed to spend thirty minutes
discussing the Active Living Policy on November 9.
Mr. Harmening stated it is staffs expectation that the City Council would adopt an Active Living
Policy and agreed it would not take thirty minutes. Council suggested that Staff prepare a written
report for the November 9 meeting..
2. Fiber Network Policy (with Consultant)
Mr. Pires presented the staff report and introduced Commissioners Hartman and Keeler of the
Telecommunications Advisory Commission (TAC), as well as Carl Torarp and Tim Johnson from
LocaLoop and Consultant Tom Pavek. He stated that direction is requested from the Council with
respect to conducting a long term study of the future use of the City's fiber optic network Council
is also requested to determine if staff should pursue an agreement with LocaLoop for the leasing of
fiber capacity. He added a key consideration includes how the City desires to treat the use of fiber
by others and what the City might want to require from others who are performing major
reconstruction and/or new construction in terms of adding in the capacity to have fiber connections
Study Session Minutes -2- October 26, 2009
in those buildings. He indicated the estimated cost to complete the study is $25,000 and would be
funded from the Cable TV fund, consistent with other fiber initiatives in the past. He explained
that LocaLoop is interested in installing a Wi-MAX network that covers the entire City. LocaLoop's
proposal has been briefly researched by Mr. Pavek and the City Attorney and it was determined that
there are no obstacles that would prevent that kind of arrangement. He further explained that
LocaLoop is proposing to build fiber extensions to the water towers, at their cost, and these
extensions would then be turned over to the City for ownership. He stated the risks to the City are
minimal and emphasized the project would be non-exclusive. The City's role would be strictly a
lessor of assets. He added the City would gain one mile of fiber infrastructure and connectivity to
the water towers, which would be valuable in the future. He stated the TAC has reviewed
LocaLoop's proposal and expressed support for the project.
Councilmember Basill asked if the proposed long term study could be conducted by current staff.
Mr. Pires replied that staff does not feel it has sufficient resources or sufficient expertise to prepare
the study. He added the department could likely perform some pieces of the study, but others
would still require outside expertise.
The Council discussed LocaLoop's use of 4G technology, Wi-MAX technology, and a fiber leasing
arrangement.
Councilmember Paprocki stated he felt this presents a tremendous opportunity for the City and is
an excellent application of the fiber currently in place. He added he would like to see the City work
on running fiber from the street to locations in the City in need of revitalization, as a means of
spurring development.
Mr. Pavek agreed and stated the City should make use of its asset and market this asset for economic
development.
Mr. Torarp stated that the agreement with the City would be non-exclusive so other competitors
may enter the market; LocaLoop believes that competition is good for the City and its residents and
drives prices down. He added LocaLoop is confident it has a patentable technology, which enables
its business case and pricing scenario.
Councilmember Finkelstein stated it will be important to keep TAC involved going forward and to
keep the Council updated on a regular basis
Mr. Pires suggested the Council direct the TAC to spearhead the project and perform the ground
work. He added he would envision having TAC members participate on the study team as well as
participating in the final arrangements with LocaLoop.
It was the consensus of the City Council to move forward with the long term study relative to the
City's future options with respect to fiber, ordinances to require or incentivize inclusion of fiber
capabilities, and to direct staff to work with LocaLoop to finalize an agreement per Council's
discussion.
Study Session Minutes -3- October 26, 2009
Mr. Pires stated that the study will also address how the City's fiber resources can be used to spur
economic development.
3. City Manager 2009 Performance Evaluation
Mr. Harmening presented the staff report and noted that three consultants have submitted proposals
for facilitating the City Manager's evaluation.
It was the consensus of the City Council to retain the services of J. Forrest, Employee Strategies,
Inc., to facilitate the City Manager performance evaluation.
4. Property Acquisition Update — 3924 Excelsior Boulevard (former American Inn
property)
Mr. Locke presented the staff report stating that an environmental analysis was recently completed
by AMEC Geomatrix on behalf of the City. He stated that AMEC representatives have concluded
that while the property has impacts from the fill materials deposited on the site and the former filling
station, they are relatively low level, do not pose an immediate health risk, and could most likely
remain until the property is fully redeveloped. He added that this property appears to contain
similar material to that found on the Ellipse property. He indicated that staff has met with the
owner's representative to discuss the environmental findings and future use of the property. He
stated that the owner expressed a willingness to reduce the purchase price of the property to
$750,000.
Councilmember Finkelstein asked if environmental remediation would need to be started
immediately after purchase.
Mr. Hunt stated the City would enter the subject property into the MPCA's Voluntary Investigation
and Clean-up Program (VIC), and at that time staff would determine if the MPCA is agreeable to
the City removing the building with the understanding that ultimately a developer would be
responsible for properly remediating the entire site.
Mr. Locke added that AMEC representatives are fairly confident that the MPCA will allow the City
to tear the building down without having to remediate the entire property.
Councilmember Finkelstein stated he felt the EDA should purchase the property in order to
maintain control of the building and this represents the best possible solution for the City.
Mr. Hunt indicated the next step is for the EDA to consider formal approval of the purchase
agreement.
Study Session Minutes -4- October 26, 2009
5. 2010 Enterprise Fund Budgets and Related Capital Improvement Plan
Mr. Swanson presented the staff report and indicated the report includes a snapshot of the Capital
Improvement Plan as it relates to the Enterprise Fund Budgets He presented the assumptions used
by staff in preparing the Enterprise Fund budgets and noted that three contracts are currently
settled. He explained that the Sewer Fund's expenses have been increased to reflect a $219,000
increase in sanitary sewer charges from Met Council Environmental Services (MCES); this increase
is the result of a new calculation method used to calculate flow, and results in significant increases to
participating cities. He stated Met Council staff expects the MCES charge to increase by 6% in
2011 and 2012 and 5% thereafter. Mr. Swanson added staff is enlisting assistance from Ehlers to
prepare further analysis regarding this significant increase.
Mr. Swanson presented the Solid Waste Fund budget and stated that $1 million of this fund is going
to the Capital Replacement Fund for the MSC project. He noted charges are a flat 3% and those
rates reflect where the City is at with its hauler.
Mr. Harmening pointed out that the City is currently in negotiations with Eureka, and this budget
assumes no change in the current contract with Eureka.
Mr. Swanson presented the Storm Water Fund budget and noted this budget reflects a very small
increase and removes some of the capital outlay. He explained that staff is proposing to increase
some of the flat fees from $13.50 to $15.00 which is why the budget shows a large percentage
increase.
Mr. Swanson presented the Water Fund budget and indicated expenses increased by 10.85% He
noted that the City has some meter work or replacements going on throughout city and this
increased the expenses in this budget.
Mr. Swanson presented the preliminary Capital Improvement Plan for the Enterprise Funds. He
stated the City has an aggressive plan in place to maintain the City's infrastructure, and the numbers
have been forecasted out to 2019.
Mr. Harmening indicated that further information will be brought to the Council, including a full
snapshot of how the City's funds look out to 2018 and 2019 and what the City's rate requirements
will be.
6. Communications (verbal)
None.
The meeting adjourned at 7.40 p.m.
Written Reports provided and documented for recording purposes only:
7. September 2009 Monthly Financial Report
Study Session Minutes -5- October 26, 2009
8. Quarterly Investment Report (July-September, 2009)
9. Property Foreclosure Workgroup Update
10. Regional Trail Crossings
11. Park Nicollet Private Activity Revenue Refunding Bonds
--?1 aVki e Z2 \71- ------- Li /�Nancy Stroth, City Clerk Jeff Jacob , /://