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HomeMy WebLinkAbout2010/11/01 - ADMIN - Minutes - City Council - Regular III St. Louis Park OFFICIAL MINUTES MINNESOTA CITY COUNCIL MEETING ST. LOUIS PARK, MINNESOTA NOVEMBER 1,2010 1. Call to Order Mayor Pro Tern Sanger called the meeting to order at 7:30 p.m. Councilmembers present: Mayor Pro Tern Sanger, Phil Finkelstein, Anne Mavity, Paul Omodt, and Sue Santa. Councilmembers absent: Mayor Jeff Jacobs and Councilmember Julia Ross. Staff present: City Manager(Mr. Harmening), Deputy City Manager/Human Resources Director (Ms. Gohman), City Attorney (Mr. Scott), Community Development Director (Mr. Locke), Economic Development Coordinator (Mr. Hunt), Facilities Superintendent (Mr. Altepeter), Inspection Services Manager (Ms. Boettcher), Controller (Mr. Swanson), and Recording Secretary(Ms. Hughes). la. Pledge of Allegiance lb. Roll Call 2. Presentations-None 3. Approval of Minutes 3a. Special Study Session Minutes of October 18, 2010 Councilmember Mavity requested that the last sentence of the seventh paragraph on page 2 be revised to state "She asked if the City should to explore available programs to help people pay these increased costs related to fee increases." The minutes were approved as amended. 3b. City Council Meeting Minutes of October 18, 2010 Councilmember Santa requested that the first paragraph under item 6a on page 3 be revised to add a sentence that states "She also indicated that the same staff and procedures would remain the same with the change in ownership of Applebee's." The minutes were approved as amended. 4. Approval of Agenda and Items on Consent Calendar NOTE: The Consent Calendar lists those items of business which are considered to be routine and/or which need no discussion. Consent items are acted upon by one motion. If discussion is desired by either a Councilmember or a member of the audience, that item may be moved to an appropriate section of the regular agenda for discussion. City Council Meeting -2- November 1, 2010 4a. Adopt Resolution No. 10-116 Authorizing Final Payment in the Amount of $10,653.00, for the Glenhurst Lift Station Project, City Project No. 2010-2300 - Contract No. 28-10. 4b. Adopt Resolution No. 10-117 releasing an agreement concerning special assessments for Improvement Project Nos. 90-54 and 96-19. 4c. Adopt Resolution No. 10-118 authorizing traffic controls at Zarthan Avenue & West 34th Street and Resolution No. 10-119 Zarthan Avenue&Hamilton Street. 4d. Adopt Resolution No. 10-120 authorizing the elimination of permit parking restrictions in front of 2900 Blackstone Avenue, 4013 Raleigh Avenue, and 2935 Sumter Avenue. 4e. Adopt Resolution No. 10-121 authorizing Worker's Compensation insurance renewal for December 1, 2010—November 30, 2011. 4f. Adopt Resolution No. 10-132 approving acceptance of donation from Sam's Club in the amount of$2,000 for Holiday Programs. 4g. Adopt Resolution No. 10-122 authorizing the special assessment for the repair of the sewer service line at 2700 Toledo Avenue South - P.I.D. 31-029-24-32-0060. 4h. Adopt Resolution No. 10-123 authorizing the special assessment for the repair of the water service line at 8007 West 18th Street, St. Louis Park, MN - P.I.D. 06- 117-21-44-0001. 4i. Approval of Filing of Vendor Claims. It was moved by Councilmember Omodt, seconded by Councilmember Finkelstein, to approve the Agenda as presented and items listed on the Consent Calendar; and to waive reading of all resolutions and ordinances. The motion passed 5-0. 5. Boards and Commissions 5a. Appointment of Citizen Representative to Boards and Commissions It was moved by Councilmember Mavity, seconded by Councilmember Omodt, to appoint Jenna Sheldon as a Youth Commissioner to the Telecommunications Advisory Commission for the term expiring August 31, 2011. The motion passed 5-0. Councilmember Mavity pointed out that there are many other opportunities for the City's youth to serve on the City's boards and commissions and added this is a great opportunity for young adults to understand city government and to become involved. 6. Public Hearings 6a. Public Hearing — Assessment of Delinquent Utilities, Tree Removal/ Injection,Mowing, False Alarms, and Other Miscellaneous Charges Resolution No, 10-124 Mr. Swanson presented the staff report and stated that each of the customers involved in this special assessment process were billed through the City's regular process and the invoices are now past due. He indicated that individual letters were mailed to the affected City Council Meeting -3- November 1, 2010 property owners on October 1st advising them of the public hearing. He stated that for 2010, 1,634 letters were mailed representing a total delinquency of $743,000. He indicated that as of close of business today, $209,000 in payments from 494 customers was received, leaving $534,000 outstanding; all delinquencies as of 4:30 p.m. on Friday, November 5, 2010, will be certified to the County for collection as part of the property owner's tax bill. Mayor Pro Tern Sanger opened the public hearing. No speakers present. Mayor Pro Tern Sanger closed the public hearing. It was moved by Councilmember Santa, seconded by Councilmember Omodt, to adopt Resolution No. 10-124 Levying Assessment and Reassessment for Delinquent Utility Accounts, Tree Removal/Injection, False Alarm Fees and Other Miscellaneous Charges. The motion passed 5-0 6b. - Public Hearing — First Reading of an Ordinance Providing for a Local Lodging Tax Mr. Hunt presented the staff report. He stated that significant research and considerable discussion has taken place with local stakeholders as well as the Twin West Chamber of Commerce with respect to the formation of a Convention and Visitors Bureau (CVB) for the purpose of promoting St. Louis Park as a tourism destination. He indicated that the pnmary revenue source for operating a CVB is a local lodging tax and the statute allows a tax up to 3% of gross receipts from room rentals; the proposed ordinance would take effect January 1, 2011. He added that pursuant to statute, 95% of the gross proceeds must be used to fund a local convention and visitors bureau to promote the City as a meeting or tourism destination. Mayor Pro Tern Sanger opened the public hearing. Mike Kottke, Director of Sales at the Doubletree Hotel, appeared before the City Council and expressed his surprise that this tax was being pushed through. He stated that St. Louis Park currently has a competitive advantage over other areas, including Minneapolis/St. Paul and Bloomington,because of the lower tax rate. He stated he felt that the lodging tax would represent a major disadvantage and that the proposed tax is wrong. He indicated that the Twin West and Minnesota Chambers of Commerce already provide this service and he did not feel the proposed CVB would generate any leads for their hotel and may even result in lost revenue for the local hotels. Councilmember Mavity asked Mr. Kottke if he was aware that the proposed CVB is being established in collaboration with the Twin West Chamber of Commerce. She also asked if he did not see any value in the creation of a CVB. Mr. Kottke replied that he did not see any value in the CVB. Bruce Nustad, President of Twin West Chamber of Commerce, appeared before the City Council and expressed his thanks to the City for its efforts in creating a CVB. -He stated that Twin West is committed to working with the local hoteliers to resolve any questions or concerns regarding the CVB. City Council Meeting -4- November 1, 2010 Mayor Pro Tern Sanger closed the public hearing. Councilmember Finkelstein stated it was his understanding that the majority of the local hoteliers were supportive the proposed CVB, as well as the Twin West Chamber of Commerce. He added it was also his understanding that a number of other communities, including Burnsville, Roseville, Lakeville, Eagan and several northern suburbs have formed a CVB. Mr. Hunt replied that that was correct. It was moved by Councilmember Finkelstein, seconded by Councilmember Santa, to approve First Reading of an Ordinance Amending Chapter 8 to Add a New Article Providing a Local Lodging Tax. Councilmember Mavity stated that it would be helpful to receive any additional feedback from Mr. Kottke or others from the Doubletree Hotel prior to the second reading. The motion passed 5-0. 6c. Consolidated Public Hearing (1) 2011 Budget and Property Owner Service Charges for Special Service District No. 1 Resolution No. 10-125 (2) 2011 Budget and Property Owner Service Charges for Special Service District No. 2 Resolution No. 10-126 (3) 2011 Budget and Property Owner Service Charges for Special Service District No. 3 Resolution No. 10-127 (4) 2011 Budget and Property Owner Service Charges for Special Service District No. 4 Resolution No. 10-128 (5) 2011 Budget and Property Owner Service Charges for Special Service District No. 5 Resolution No. 10-129 (6) 2011 Budget and Property Owner Service Charges for Special Service District No. 6 Resolution No. 10-130 Mr. Altepeter presented the staff report and stated that Special Service Districts are established to maintain the streetscape projects that the City has done for a number of years. He explained that Special Service District No. 1 is located along Excelsior Boulevard from Quentin Avenue to Highway 100 north to Park Center Boulevard; the 2011 budget for this district is $126,672 with a service charge in the amount of$50,000. He noted that this district is the largest service district in the City and requires snow removal which varies year to year. He explained that each service district has a goal of a 50% fund balance. Mr. Altepeter stated that Special Service District No. 2 is located along Excelsior Boulevard from Monterey east to France Avenue; the 2011 budget for this district is City Council Meeting -5- November 1, 2010 $46,534 with a service charge in the amount of $46,534. He noted that this service district is a small district that got behind a couple of years ago and is now catching up. Mr. Altepeter stated that Special Service District No. 3 is located along Excelsior Boulevard from Quentin Avenue to Monterey Drive; the 2011 budget for this district is $63,600 with a service charge in the amount of$42,898. Mr. Altepeter stated that Special Service District No. 4 is located along Excelsior Boulevard west of Highway 100 to Louisiana Avenue; the 2011 budget for this district is $38,095 with a service charge in the amount of$11,827. He noted that only businesses located in the completed portion of this streetscape are being charged in this distnct. Mr. Altepeter stated that Special Service District No. 5 is located along Park Place Boulevard between I-394 and Cedar Lake Road; the 2011 budget for this district is $26,380 with a service charge in the amount of$15,000. Mr. Altepeter stated that Special Service District No. 6 is located along West 36th Street from Wooddale Avenue to Highway 100; the 2011 budget for this district is $24,480 with a service charge in the amount of$18,000. He noted that this is the first year that this district has been fully operational, thus requiring an assessment to make sure a revenue source is available in the future. Mayor Pro Tem Sanger opened the public hearing. No speakers present. Mayor Pro Tem Sanger closed the public hearing. It was moved by Councilmember Mavity, seconded by Councilmember Santa, to approve Resolution No. 10-125, No. 10-126, No. 10-127, No. 10-128, No. 10-129, and No. 10- 130, Approving 2011 Budget and Property Owner Service Charges for Special Service District No. 1, No. 2, No. 3, No. 4, No. 5, and No. 6. The motion passed 5-0. 7. Requests, Petitions, and Communications from the Public—None 8. Resolutions, Ordinances,Motions and Discussion Items 8a. 2011 Employer Benefits Contribution Resolution No. 10-131 Ms. Gohman presented the staff report and stated that in 2010, the City had a zero employer benefits contribution increase in benefits to help with the City's budget issues. She indicated that for 2011, it is recommended that the City's benefits contribution be increased $65 from $750 to $815 per month. She advised that the City's health insurance premiums with Blue Cross/Blue Shield will increase 17% for 2011, which is less than expected. She indicated the City's dental insurance rates will increase 3% in 2011, there will be no increase in life insurance rates, and the long term care insurance rates will remain the same in 2011. City Council Meeting -6- November 1, 2010 It was moved by Councilmember Santa, seconded by Councilmember Omodt, to approve Resolution No. 10-131 Establishing 2011 Employer Benefits Contribution. The motion passed 5-0. 8b. 2"d Reading—Franchise Fee Ordinance Amendments Ordinance Nos. 2394-10 and 2395-10 Ms. Gohman presented the staff report and noted that typically second readings are approved under the Council's Consent Agenda; however, in this case, there were some tweaks to the language required by Xcel Energy that require the City to state it does not charge additional permit fees and the ordinance has been corrected to match the franchise fee agreement. She stated there was also an additional housekeeping correction made to the ordinance on page 2; Xcel Energy requested that the list of customer classifications and amounts charged per month be included in the City's ordinance. She noted that this does not change the fee allocation and the amounts charged remain the same from the first reading. Councilmember Finkelstein stated that the franchise fees are used to fund the City's pavement management fund and not for anything else. Mr. Swanson replied that this is correct. He added that the proposed fees are in line with what other cities charge. Mayor Pro Tem Sanger noted that this is the first time that the City's franchise fees have been raised since being instituted eight or nine years ago. It was moved by Councilmember Santa, seconded by Councilmember Omodt, to adopt Second Reading of Ordinance No. 2394-10 Amending and Restating Ordinance No. 2244-03 Imposing a Franchise Fee on Xcel Energy, a Minnesota Corporation, its Successors and Assigns, Pursuant to Franchise Ordinance No. 2086-97, Section 9-610. The motion passed 5-0. It was moved by Councilmember Santa, seconded by Councilmember Omodt, to approve Second Reading of Ordinance No. 2395-10 Amending and Restating Ordinance No. 2245-03 Imposing a Franchise Fee on Centerpoint Energy Minnegasco, Inc., a Minnesota Corporation, its Successors and Assigns, Pursuant to Franchise Ordinance No. 2236-03, Section 7.1. The motion passed 5-0. 8c. West End Apartments Parkland and Trail Dedication Mr. Locke presented the staff report and stated that earlier this year the City made a zoning amendment and changes to the redevelopment contracts for the West End to allow the proposed apartment project to move forward. He indicated that the proposed apartment project sits within the West End development, which paid the parkland and trail dedication as part of the original development. He explained that the parkland dedication fee for an apartment building is higher than for the development originally City Council Meeting -7- November 1, 2010 envisioned for this site and staff is proposing to modify the amount of the parkland and trail dedication fee by reducing the fee to be consistent with the original formula applied to this project, resulting in an additional parkland fee of $80,500 for the apartment project. He stated that based on the unique environment created at the West End coupled with the level of amenities and public improvements included in the West End development, staff feels the reduction is appropriate. He then introduced Chris Culp, developer of the West End Apartments. Councilmember Mavity noted that this item was considered by the Park Commission and there was some disagreement among the Commissioners regarding the approach the City should take on this matter. Mr. Locke acknowledged that the Park Commission voted 4-2 in favor of a strict application of the parkland dedication fee rather than the proposed $80,500 amount. He stated that the Park Commission felt it was their obligation to take a stance that they should get the largest fee possible; there was also concern expressed about setting a precedent for similar situations in the future. He stated that each project represents a unique situation, especially with respect to redevelopment projects, and each project has a different final result based on the type of amenities included in the project. He indicated that in this case, staff used the same rationale that was used for the rest of the West End redevelopment project and applied the same standards as it did for the rest of the project. Councilmember Mavity stated she felt that this was a unique situation in terms of what is being done at the West End and expressed her support for the proposed parkland dedication fee of$80,500. She added that it is important to recognize the valuable input of the Park Commission members and to acknowledge their thinking on this issue. Councilmember Finkelstein stated that while the developer has met the DORA requirements for the apartment project, those components will not generally be available to the general public. He stated he did not feel that this project met the same criteria as the rest of the West End project and a reduction of the parkland dedication fee does not appear to be justified. Mayor Pro Tern Sanger agreed with Councilmember Finkelstein as well as the Park Commission. She stated that the reason for parkland dedication fees is to promote the development of parks and open space for public recreation purposes. She acknowledged that there are a lot of amenities at the West End, but they are not park amenities. She expressed concern that the proposed apartment building will not have a lot of green space around it and stated that she was not in support of reducing the parkland dedication fee for the apartment building project. Councilmember Mavity noted that there will be additional park or green space as part of the overall development that the City has not yet seen. Councilmember Omodt reminded Council that when the City first started looking at the West End project, it was determined that there would be a total package of elements built over time, without trying to tag one element of the project with all of the green space requirements. He stated that the site has a community room, trail spaces, green areas, and ponding and the City has been proactive in making sure that the overall vision for the project is very open without being a city park, and that the project contains all of the City Council Meeting -8- November 1, 2010 amenities that the City required. He added that he felt that the proposed parkland dedication fee of$80,500 was fair. Councilmember Santa agreed with Councilmember Omodt and stated that the apartment building is part of the larger West End development and has been in process for a long time. She acknowledged that the apartment project represents a change for this site but did not believe that this developer should be penalized in any way. It was moved by Councilmember Santa, seconded by Councilmember Omodt, to approve an additional parkland and trail dedication fee of$80,500 for the West End Apartments site at 5310 West 16th Street. Mayor Pro Tem Sanger asked if the proposed parkland dedication fee of $80,500 represents an amount that was previously negotiated with the developer. Mr. Locke explained that the agreement that originally came to Council in 2007 to begin the West End project included $917,000 in parkland dedication fees, which was half of what a strict application of the standards would require, and $46,000 of this amount was applied to this site. He stated that if the same standard was applied to the apartment site, the additional fee not already received would be an additional $80,500. Mr. Chris Culp, developer of the West End Apartments, appeared before the City Council and explained that when he began discussions with Duke Realty, the former owner and master developer of West End, he was informed that all parkland fees had been paid for the entire site. He stated that as his project moved through the rezoning and approval process, an additional parkland dedication fee of$160,000 caught him by surprise. He indicated that he worked with staff and reached agreement on the parkland dedication fee for this project of$80,500. Mr. Locke agreed with Mr. Culp's understanding that Duke Realty believed it had taken responsibility for all of the park dedication fees for all the sites on the West End. He indicated that the City's rationale for the 50% reduction is intended to be consistent with the standard applied for the previous West End project approvals. The motion passed 4-1(Mayor Pro Tem Sanger opposed). 9. Communications Mr. Harmening reminded residents to vote tomorrow. He stated the polls are open at 7:00 a.m. and if residents are unsure of their precinct location or have questions, they can go to the City's website, www.stlouispark.org, or contact the City Clerk's office at 952- 924-2500. 10. Adjournment The meeting adjourned at 8:33 p.m. afj9 Nancy Stroth, dity Clerk Jeff 'acob , May'r