HomeMy WebLinkAbout2009/08/24 - ADMIN - Minutes - City Council - Study Session I/I
St. Louis Park OFFICIAL MINUTES
MINNESOTA CITY COUNCIL STUDY SESSION
ST. LOUIS PARK, MINNESOTA
AUGUST 24, 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), Human Resources Director (Ms. Gohman), Finance
Director (Mr. DeJong), Assistant Finance Director (Mr. Swanson), Community Development
Director (Mr. Locke), Inspections Director (Mr. Hoffman), Public Works Director (Mr. Rardin),
Engineering Project Manager (Mr. Olson), City Engineer (Mr. Brink) and Recording Secretary (Ms.
Hughes).
Others present: Mark Dierling and Brett Johnson, SEH, Inc.
1. Future Study Session Agenda Planning— September 14, 2009
Mr. Harmening presented the proposed study session agenda for September 14, 2009.
2. Highway 7/Louisiana Avenue Interchange Project Update (with consultant)
Mr. Olson presented the staff report and introduced Mr. Dierling and Mr. Johnson from SEH, Inc.
He reported that the Project Management Team (PMT), consisting of representatives from the City,
SEH, Mn/DOT, the Federal Highway Authority, the Regional Railroad Authority, and Three
Rivers Park, has prepared seven alternatives for public comment and to aid in the selection of a
preferred alternative. He explained the evaluation process undertaken by the PMT and the screening
criteria used to evaluate the various concept alternatives. He stated at this time, the PMT is
recommending two finalists for the preferred concept, i.e., the button hook ramps with roundabouts
(Option #4) and the tight diamond (Option #6).
Mr. Dierling and Mr. Johnson provided further information regarding the two finalists and how
traffic is intended to flow through these areas.
Councilmember Paprocki expressed concern about the use of roundabouts on Louisiana Avenue; a
lot of people tend to stop at roundabouts when approaching them for the first time. He stated he
felt Louisiana Avenue should have traffic signals.
Mr. Johnson explained that roundabouts work best at the ramps because Mn/DOT had concerns
about traffic backing up onto Highway 7. He indicated that the roundabout on Louisiana also
greatly reduces pavement and construction costs.
Councilmember Sanger opined that roundabouts work and felt that drivers were capable of figuring
out how to drive through a roundabout.
Study Session Minutes -2- August 24, 2009
Councilmember Finkelstein expressed concern about the use of roundabouts.
Councilmember Basill felt that roundabouts are more efficient than stop lights and help with traffic
flow.
Councilmember Omodt stated his preference for option #4.
Mayor Jacobs expressed concern about pedestrian safety with roundabouts, particularly with a
possible light rail station, and indicated that drivers have a tendency not to stop for pedestrians in
crosswalks, even though state law requires that they stop.
The Council discussed traffic projections for each of the two finalist options and the use of
roundabouts versus traffic signals.
Councilmember Finkelstein requested further information about funding for the project. He stated
that because this is a regional project, the City should receive a firm commitment from the County
before proceeding further with the project.
Mr. Harmening stated that the City is nearing completion of phase 2; phase 3 will include
preliminary design and environmental assessment of the preferred concept. He noted that phase 3
will likely cost several hundred thousand dollars. He agreed that the City should not have to bear
the brunt of the cost for this project.
Significant discussion ensued regarding options available for funding the project, which currently
includes a federal grant received in the amount of$7.6 million. It was noted the City also applied
for $11 million in grant funds through the Metro District Interchange Solicitation Application and
the results will be known in September.
Mr. Rardin explained that phase 3 will take approximately nine months and pointed out that the
environmental assessment is a critical component of the project. He stated that by completing phase
3 the project would be near "shovel ready." He noted that the environmental assessment has a three
year shelf life. He indicated that phase 2 will likely be completed in November of this year.
Mr. Harmening suggested that phase 2 be completed and over the course of the next couple of
months, the City can see what happens with its funding request from the Metro District
Interchange. He stated from a design perspective, staff will continue to vet the options and work to
finalize the design, particularly with respect to the use of roundabouts on Louisiana. He added staff
will continue to work with the County regarding funding.
Councilmember Finkelstein requested further information regarding roundabouts used in other
cities.
Mr. Rardin stated it will be important to educate the public regarding the roundabouts and noted
there are a number of educational aids available that address the safety concerns expressed earlier.
Study Session Minutes -3- August 24, 2009
3. Update on SWLRT/Freight Rail Study
Mr. Locke presented the staff report together with three concept plans for the areas surrounding the
light rail stations proposed for Louisiana, Wooddale, and Beltline; these concept plans were
distributed at the SWLRT open house on August 18. He indicated that staff recently received the
draft ridership forecasts and capital/operations cost estimates for the four alternative LRT routes
currently being evaluated. He stated if the freight rail questions are set aside, the Kenilworth option
appears to be the only alternative that would qualify for potential federal funding based on the Cost-
Effectiveness Index (CEI) calculations. He stated this raises questions about possible re-routing of
freight rail and the potential impacts of that re-routing on the City. He added the City requested
further analysis by the County regarding what would be necessary to fit both light rail and freight
rail in the Kenilworth corridor; Commissioner Dorfman presented a letter to him this evening with a
partial response to that question.
Councilmember Sanger stated that she and Jim Brimeyer do not accept the ridership estimates and
feel that the projected ridership estimates do not appear to make sense. She indicated she sent an
email to Commissioner Dorfman requesting a presentation to help them understand how the
County came up with its estimates. She stated until there is a clear explanation of the ridership
numbers, she will have a difficult time believing there has been a neutral and effective technical
assessment of the routes. She indicated the City has been asking the County for a year to conduct a
study about having freight rail and light rail co-existing in the Kenilworth corridor. She expressed
concern that the County has refused to include the costs of mitigation of the freight rail impacts as
part of the construction costs for light rail, resulting in no money for mitigation of these impacts.
She recommended the City withhold its support of the project until the City receives further
clarification and answers to its questions from the County.
The Council discussed mitigation requirements and the CEI calculations.
Mr. Locke stated that the technical advisory, policy advisory, and citizen advisory committees will be
meeting with the consultants on Wednesday.
Mr. Harmening stated that the City Attorney is reviewing the City's role and opportunities for
influence and control of freight rail improvements as well as mitigation requirements. He proposed
that when Mr. Locke attends the technical advisory committee meeting, Mr. Locke will indicate that
the City cannot take a position on the locally preferred alternative until it has a better understanding
of the freight rail impacts and how the City's concerns regarding the impacts will be adequately
addressed. He added it will be important to think about how the City leverages the community's
best interest for mitigation purposes.
Councilmember Sanger stated it is important to obtain input from residents as well as the school
district on this issue.
Councilmember Basill stated he wants to see light rail in the City and the freight rail issue puts the
City in a difficult position.
Study Session Minutes -4- August 24, 2009
It was the consensus of the City Council that the City cannot take a position on the locally preferred
alternative route for light rail until such time as the City's concerns regarding freight rail impacts are
adequately addressed.
4. General Fund Budget/Parks and Recreation Fund Budget and Preliminary 2010 Levy
Mr. Dejong presented the staff report and updated information regarding the strategy to balance the
2010 budget. He noted that the proposed budget assumes a $500,000 levy increase.
Councilmember Finkelstein stated he is still interested in a street light franchise fee and urged the
Council to reconsider this fee.
Mr. Harmening discussed the proposed wage freeze for non-union and unsettled contracts and
noted if the City is successful in negotiating with the closed contracts for less than 3% in 2010, the
savings will be greater.
Councilmember Sanger expressed concern that a portion of the work force will receive an increase
while others receive no increase and its impact on employee morale.
Mr. Harmening stated he is very concerned about a sense of disparity between those employees who
receive a negotiated salary increase and those whose wages are frozen for 2010. He added he has
expressed this concern to the unions and has indicated to them that getting a 3%+ wage increase
during these tough economic times will send the wrong message.
Mr. Dejong discussed the tax levy options and noted the City could increase its property tax levy for
2010 by approximately $1.2 million. He stated that if the City Council wished to levy more than
$650,000, staff recommends that these funds be allocated to the City's capital needs; longer term
funding shortfalls are expected in the Pavement Management Fund and Capital Replacement Fund.
He stated the Park Improvement Fund has a healthy fund balance and staff proposes that
approximately $200,000 of the City's annual $1 million property tax levy for this fund be redirected
to the Capital Replacement Fund. He stated if the City raised its franchise fees to be comparable to
other communities, this could generate $274,000 which could be put toward the Pavement
Management Fund and would make this fund fairly sustainable.
Councilmember Sanger stated she would prefer to levy at the $1 million level with $650,000 going
toward the operating budget and the remainder to capital needs. She stated the actual amount of the
property tax increase would be very small and would not likely create a financial burden for
homeowners.
Councilmember Basill stated that the City needs to remain sensitive to increased taxes, not only on a
City level, but also on the County and School District level. He stated he would be in favor of
levying just what the City needs versus the maximum amount.
Councilmember Finkelstein agreed and felt the levy should be $650,000.
Study Session Minutes -5- August 24, 2009
Mayor Jacobs, Councilmembers Omodt and Paprocki agreed with a $650,000 levy increase.
Councilmember Carver stated he felt there should be little or no increase in property taxes and stated
he was in favor of a $500,000 levy increase.
It was the consensus of the City Council to set the preliminary property tax levy at $650,000. It was
also the consensus of the City Council to continue the HRA levy.
Ms. Gohman presented an overview of proposed staff reductions and discussed the early retirement
incentive, voluntary resignation incentive, and reduction in force programs. She presented cost
examples for each of the programs using an example of a public service worker position. She noted
that there are thirteen public service workers eligible for the City's early retirement program. She
presented two scenarios for a public service worker taking early retirement on January 1, 2010; the
first scenario of replacing the position at the start of the wage scale provides a savings of$7,280 after
five years, not including costs for overtime, recruitment, uniforms, etc. She explained the second
scenario of replacing the position with a custodian provides a larger savings of $58,000 after five
years.
Councilmember Sanger stated that staff is in a better position to decide which positions can be
eliminated based on business need.
It was the consensus of the City Council to continue with the 2010 budget process and did not
direct staff to purse the use of the leave incentive program at this time.
Mr. Harmening stated the franchise fees and budget feedback issues will be addressed at the next
Study Session.
5. Mayor, City Council and the Economic Development Authority Compensation
Ms. Gohman presented the staff report and salary survey from the League of MN Cities.
It was the consensus of the City Council to reduce the Mayor and Council salaries by 5% effective
January 1, 2010, with no change to the EDA salaries.
6. Communications (verbal)
Mr. Hoffman provided a brief update regarding the Municipal Service Center (MSC) project and
the need to remove a significant amount of soil for the planned stormwater pond. He noted that as
earlier discussed, soil borings indicate low levels of petroleum and approximately 13,000 cubic yards
of soil need to be removed from the site. He explained that staff has explored alternatives for the soil
and has determined that the soil could be used on the southwest corner of Louisiana Oaks Park near
the Reilly site; transporting the soil to this location could be done at a reasonable cost. He indicated
that the public process would involve a neighborhood meeting, obtaining a conditional use permit,
as well as obtaining Pollution Control Agency approval.
Study Session Minutes -6- August 24, 2009
Mr. Harmening stated that the City remains sensitive as to how it will communicate with the
neighborhood regarding the proposed soil relocation and to make certain the neighborhood
understands what will happen and is agreeable to the conditional use permit. He added the City is
also in the process of reviewing the Reilly consent decree to make sure the soil can be relocated to
this site.
Councilmember Paprocki stated the proposed relocation of the soil makes sense monetarily, but
expressed concern about how the soil relocation will be perceived by some of the residents in the area
It was the consensus of the City Council to direct staff to communicate with the neighborhood
regarding the proposed soil relocation.
Mr. Harmening reported that a crime alert will be issued tomorrow regarding a person who has been
seen approaching young children in Jersey Park.
The meeting adjourned at 9:40 p.m.
Written Reports provided and documented for recording purposes only:
7. July 2009 Financial Reports
8. Change Order Approval — Procedure Update
9. Semi Annual Housing Programs Report
Nancy Stroth, City Clerk Jeff J. o:', ayor