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HomeMy WebLinkAbout2009/08/10 - ADMIN - Minutes - City Council - Study Session IIf St. Louis Park OFFICIAL MINUTES MINNESOTA CITY COUNCIL STUDY SESSION ST. LOUIS PARK, MINNESOTA AUGUST 10, 2009 The meeting convened at 6:30 p.m. Councilmembers present: Mayor Jeff Jacobs, John Basill, C. Paul Carver, Phil Finkelstein, Paul Omodt, Loran Paprocki and Sue Sanger. Councilmembers absent: None Staff present: City Manager (Mr. Harmening), Police Chief (Mr. Luse), Police Lieutenant (Mr. Kraayenbrink), Finance Director (Mr. DeJong), Assistant Finance Director (Mr. Swanson), Community Development Director (Mr. Locke), Director of Inspections (Mr. Hoffman), Public Works Director (Mr. Rardin), Human Resources Director (Ms Gohman), Communications Coordinator (Mr. Zwilling), and Recording Secretary (Ms. Hughes). 1. Future Study Session Agenda Planning—August 24, 2009 Mr. Harmening presented the proposed Study Session Agenda for August 24, 2009. Councilmember Paprocki requested an update regarding the Hoigaard project and specifically the Anderson building. 2. Snow Operations-Tagging/Towing Vehicles Mr. Harmening presented the staff report and noted this item is intended as a follow-up to the budget discussion held on June 22nd Councilmember Sanger stated her suggestion, as discussed on June 22"d, was intended to reduce the time between plowing and tagging/towing of vehicles, resulting in less overtime hours incurred by the City. She indicated the goal would be to identify and tag violators, call in the request for a tow truck, and this would eliminate the need to have the police and plow operators go back a second time. She stated she brought this up as a way to save overtime costs and to get cars off the street faster. She added there appears to be a feeling of inequity among residents who do their part to move their vehicles and clear their sidewalk and driveway, but feel that some of their neighbors are not doing their part; those residents who are tagged do not appear concerned about it and simply pay the $30 ticket. Councilmember Finkelstein stated that no matter what system is in place, there will always be disgruntled residents and did not feel that changes were warranted. Councilmember Omodt stated he felt the current system was working. Police Chief Luse discussed the current policy in place for tagging and towing vehicles. Study Session Minutes -2- August 10, 2009 The City Council discussed the current parking ticket and towing fees and the possibility of adding a surcharge to the towing fee. It was the consensus of the City Council to direct staff to research an increase in the parking ticket and/or towing fees for consideration by the Council. Councilmember Sanger requested that staff include an article in the Perspective explaining the current parking policies, specifically why some people can legally leave their cars parked on the street. 3. Potential EDA Acquisition of 3924 Excelsior Boulevard (former American Inn property) Mr. Locke explained the EDA has an opportunity to purchase the former American Inn property of which the current property owner is interested in selling. He added the property has been for sale for a long time, and would build off the France Avenue and Excelsior Boulevard Development Guidelines focusing on mixed use, depending on the market and input from the neighborhoods. Councilmember Finkelstein stated he was in favor of having staff explore the purchase of the property and noted this is one way the City can advance its interest and control the property. Councilmembers Omodt and Paprocki agreed with Councilmember Finkelstein. Councilmember Sanger asked if the City has the opportunity to rezone the property now to ensure a future use that is consistent with the City's plan for this area. She noted that Wayside has expressed an interest in this parcel. She added she agreed that the City should purchase the property, but would like to have a better idea of what the City intends for the property. Mr. Locke stated it will be easier to come up with an overall plan for the property if the EDA owns the property. He stated there has been no soil testing done on the site and the City would perform environmental testing prior to purchase. He added that the Al's Liquors site did not contain any contaminated soil. He indicated the cost of demolition would be approximately $100,000 and that the site would be seeded. He pointed out when the TIF district was created for Ellipse, this parcel was included in the TIF district. Mayor Jacobs stated he felt this would be a justifiable expense as well as an acceptable risk for the City in purchasing this property. 4. Budget and Preliminary 2010 Levy Mr. Harmening presented the staff report and provided a brief overview of the budget process to date, including 2010 budget assumptions and understandings, and the 2010 budget gap. He discussed the budget calendar and budget details that would be discussed at the August 24th meeting including franchise fees, leave incentive programs, details on reductions as it relates to cost and services, HRA levy and ongoing communication with the public. Mr. Harmening stated that the Study Session Minutes -3- August 10, 2009 information provided this evening was to check in with Council to make sure staff is following their recommendations on 2010 budget recommendations. He also stated that this meeting will help prepare for the setting of the levy in September. Mr. Harmening also reviewed the guiding principles used for budget preparation for 2010. Mr. DeJong presented a detailed overview of the strategy for balancing the 2010 budget, including salary hold and 2010 wage freeze, staff reductions, increased/new fees, line item reductions, and a modest tax levy increase. He stated that holding the cost of 2010 salaries would provide a savings of $311,000 to $610,000; the $311,000 savings would be realized by holding wages for union contracts open in 2010 through negotiations and no increase for non-organized employees, and the remaining $299,000 represents the cost of the 3.25% wage increase in the settled contracts, other required payroll taxes, and step increases. Mr. DeJong stated that staff has identified $412,513 in staff reductions; the targeted reduction is $630,113 or an additional $217,600. He stated the additional amount could be achieved through attrition, retirement or position elimination. Mr. DeJong stated with respect to increased/new fees, the goal is $110,000 and staff has identified approximately $28,575 in increased revenues. Mr. DeJong discussed a possible new fee for the street light utility; this fee could result in the fees paying for the direct charges of the street lighting, currently estimated at $400,000 per year. He indicated that based on research of other communities, the average fee for single family properties is $2 per month. He added further analysis regarding the street light utility fee will be required, including charges for single family, multi-family, and commercial properties. Mr. DeJong pointed out the draft 2010 budget does not currently include this estimated $400,000 savings and this fee could be used to offset these costs in the general fund. The Council discussed levy limits and shifting fees in order to maintain the City's level of services currently provided to residents. Councilmember Sanger stated her preference would be to raise taxes rather than impose a street light fee; that way, residents can deduct the increased taxes. She added she has consistently heard from many residents they would rather have the City raise their taxes than cut services. It was the consensus of the City Council to not-pursue the street light utility fee at this time. Councilmember Sanger requested further information regarding the impact of staff reductions on City services, together with associated costs. Mr. Harmening agreed to provide this information at the August 24`h Study Session. He noted that staff's intent in preparing the 2010 budget is to make reductions in a way that have the least visible impact on service delivery to residents. Study Session Minutes -4- August 10, 2009 Mr. DeJong stated that staff had proposed line item reductions to the general fund of approximately $299,088. Mr. Harmening discussed the impact of the line item reductions. Some costs or line items will increase next year and in order to have an overall reduction in this area additional cut backs were made on line items to reduce costs. Mr. DeJong discussed the proposed $500,000 levy increase. He presented information regarding the decertified Excelsior Boulevard and Oak Park Village TIF Districts and stated the total amount of equivalent new property taxes estimated in 2010 is $800,000. Mr. Harmening continued this discussion and provided additional detail about the impact of the $500,000 levy increase and this will have a minimal effect on property tax payers. Significant discussion ensued regarding the proposed levy increase based on the state of the housing market and state of the economy. The Council also discussed the loss of Market Value Homestead Credit of approximately $655,000. Mr. DeJong also discussed tax capacity and noted that 96% of the properties in the City had no change in property value or a reduction with the other 4% showing an increase in value primarily because of improvements made to the property. He stated this leads to a modest .4% decrease in property tax values if the levy is set at $500,000. He provided several illustrative comparisons of different levy increases and the resulting property tax increase. Mr. Harmening stated the Council will discuss the levy increase in greater detail at the August 24th Study Session meeting. He stated staff will also provide detailed information regarding proposed line item reductions and service impacts. He added staff will also provide further information regarding the impact of leaving positions vacant and/or not filling open positions. Councilmember Finkelstein requested that staff also provide information regarding state or federal money that may still be in play as it relates to the budget. Ms. Gohman stated that on August 24th staff will also provide further information to the Council regarding proposed leave incentive programs and an update regarding communication with the public and staff's plan for incorporating resident feedback from the website as it relates to the budget. 5. Highway 7/Wooddale Ave. Project Funding Mr. Harmening reported that he, Mayor Jacobs, and Councilmember Sanger met with Commissioner Dorfman on August 3rd to discuss potential funding from the County for this project. He stated it was his impression that the County would not be providing funding for the project. Mayor Jacobs stated that Commissioner Dorfman indicated there does not appear to be sufficient support on the County Board to provide any funding. He added that Commissioner Dorfman inferred there may be funding available for Highway 7 and Louisiana Avenue. Study Session Minutes -5- August 10, 2009 Councilmember Sanger stated that one alternative may be to indicate to the County that the City will not request funding for this project if the County will agree to endorse an extension of the TIF District. Mr. Harmening suggested the Council further discuss the Highway 7/Louisiana Avenue project on August 24th. 6. Communications (verbal) Mr. Hoffman provided an update regarding the Municipal Service Center project and stated the salt storage building will be moved to its new location tomorrow He stated the bituminous materials discovered when excavating the salt storage building footings had to be removed and transported to a landfill for disposal, this removal is estimated to cost $100,000. He reported that the City recently switched environmental firms and is now working with AECOM and they will be performing the soil analysis for the much larger storm water pond excavation. He stated that initial testing shows some contamination levels in this area, but MPCA guidelines may allow the City to keep some of the soil on site. He stated staff proposes to use this soil to expand the screening berms on the southwest corner of the site and represents an economical way of dealing with some of the soil. He indicated the engineers are in the process of calculating the volume of soil which could be used for berm construction and amounts required to be transferred for disposal. Councilmember Sanger stated there will be a meeting on Wednesday, August 12, at 8:00 a.m. for Councilmembers and legislators regarding light rail. She stated light rail staff will be presenting ridership estimates and cost data to construct and operate potential routes for light rail. The meeting will take place in the Council Chambers. Councilmember Sanger encouraged the Council to attend the meeting. Councilmember Sanger invited the Council to attend the Rotary event on October 8th at the Doubletree Hotel. She stated she has tickets for purchase and can also accept silent auction items. The meeting adjourned at 8:35 p.m. 1 GZ L7-''t�.c7 / Nancy Stroth,/City Clerk Jeff J. c,, s, ayor