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HomeMy WebLinkAbout2010/12/20 - ADMIN - Minutes - City Council - Regular III Sto Louis Park OFFICIAL MINUTES MINNESOTA CITY COUNCIL MEETING ST. LOUIS PARK,MINNESOTA DECEMBER 20, 2010 1. Call to Order Mayor Pro Tern Sanger called the meeting to order at 7:30 p.m. Councilmembers present: Mayor Pro Tern Susan Sanger, Phil Finkelstein, Anne Mavity, Paul Omodt, Julia Ross, and Sue Santa. Councilmembers absent: Mayor Jeff Jacobs. Staff present: City Manager(Mr. Harmening), Deputy City Manager/Human Resources Director (Ms. Gohman), City Attorney (Mr. Scott), Community Development Director (Mr. Locke), Planning/Zoning Supervisor(Ms. McMonigal), Economic Development Coordinator(Mr. Hunt), Communications Coordinator (Mr. Zwilling), Controller (Mr. Swanson), Finance Supervisor (Mr. Heintz), and Recording Secretary(Ms. Hughes). la. Pledge of Allegiance lb. Roll Call 2. Presentations 2a. James L. Brimeyer Resolution of Appreciation Mayor Pro Tern Sanger presented Mr. Brimeyer with an appreciation plaque recognizing Mr. Brimeyer's years of service to the City of St. Louis Park and for his service on the Southwest Transitway Policy Advisory Committee. She also recited the Council Resolution recognizing Mr. Brimeyer's service. Mr. Brimeyer expressed his thanks to the City Council. 3. Approval of Minutes 3a. Study Session Minutes of November 22, 2010 Councilmember Santa requested that second sentence in the fifth paragraph on page 5 be revised to state "She stated she would prefer to bring more stability to the City's finances across the board and was comfortable with the 1.88%a 4.0% levy." Councilmember Ross requested that a paragraph be added after the seventh paragraph on page 4 that states "Councilmember Ross assured residents that a rezoning would not happen without a proposal on the table by a developer." The minutes were approved as amended. 3b. Joint City Council/School Board Meeting Minutes of November 29,2010 Councilmember Omodt stated that this was a fairly important meeting and included significant exchange of data. He requested that a complete set of minutes be prepared that reflects the information presented by the consultants and others at the meeting. City Council Meeting -2- December 20,2010 Mr. Harmening stated that this meeting was videotaped and agreed to have more complete minutes prepared. No action was taken on the Joint City Council/School Board meeting minutes of November 29, 2010, pending preparation of a more complete set of minutes by staff. 3c. City Council Minutes of December 6,2010 Councilmember Mavity requested that a paragraph be added after the fourth paragraph on page 5 that states "Mr. Locke acknowledged that PPL representatives asked staff whether they should attend the City Council meeting and were informed by staff that their attendance at the meeting was not necessary." Councilmember Omodt stated that Mr. Locke's statement regarding PPL's attendance at the meeting was not accurate at that point in the minutes and noted that the correct place for Councilmember Mavity's requested revision is on page 7 before the Council vote. Councilmember Finkelstein requested that the fifth paragraph on page 10 be stricken and replaced with the following: "Councilmember Finkelstein stated he conducted an independent review of the site and noted that the proposal does not meet the City's general CUP requirements because of the following: (1) It violates Section 1 of the CUP requirements as being inconsistent and non supportive of the City's principal goals, objectives, and land use designations; (2) It violates Section 2 of the CUP requirements (detrimental to health, safety and general welfare) due to pedestrian issues on the east driveway between Dairy Queen and Baja Sol, and due to congestion issues which comes down to the basic issue of livability; (3) It violates Section 4 of the CUP requirements having an adverse impact on governmental facilities in that it will affect Excelsior Boulevard with backup traffic, U-turn issues, and traffic criss-crossing in the back with pedestrian activity; and (4) It violates Section 5 of the CUP requirements having an adverse impact on the use and enjoyment of properties in close proximity. He stated that during his independent review, he could hear noise at the fence, noting that it is not the intercom box where you order food, but rather blasting car stereos and leaving garbage." Mr. Harmening stated that the Council motion on page 5 regarding the Louisiana Court Series 2010C bond issue needs to be clarified by replacing the blank line and inserting the principal amount of $1,770,000. He stated that the Council motion on page 6 regarding the Fire Stations Series 2010D bond issue also needs to be clarified by replacing the blank line and inserting the principal amount of$13,025,000. Mayor Pro Tem Sanger requested that the first sentence of the fourth paragraph on page 10 be revised to state "Councilmember Sanger stated that the Wendy's proposal was voted against flOt because it was not well thought out ec and that it would not enhance the area and that the current proposal is not an improvement." She also requested that the fourth sentence of the fourth paragraph on page 10 be revised to state "She stated that from a logic perspective, she could not understand how adding the drive-through will increase profits for the business ariEl but simultaneously how the proposed model will not add more traffic to the site." The minutes were approved as amended. City Council Meeting -3- December 20,2010 3d. Special Study Session Minutes of December 6, 2010 Councilmember Mavity requested that the seventh paragraph on page 2 be revised to state "Councilmember Mavity suggested that the League of Women Voters be asked to participate suggest names of people who could participate on the fiber optic study task force, specifically names of women who are grossly under-represented on the task force. €arse." 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. 4a. Adopt Resolution No. 10-150 of appreciation to recognize James L. Bnmeyer for serving on the Southwest Transitway Policy Advisory Committee led by Hennepin County Regional Rail Authority. 4b. Adopt Resolution No. 10-151 authorizing final payment in the amount of $13,724.68 for the 2009 MSA Street Improvement Project - Wooddale Avenue with Valley Paving, Inc., Project No. 2009-1101 - City Contract No. 75-10. 4c. Adopt Resolution No. 10-152 authorizing final payment in the amount of $12,000.00 for Water Treatment Plant 'No. 1 Rehabilitation with Magney Construction, Inc., Project No. 2008-1400, City Contract No. 12-10. 4d. Approve Amendment No. 1 to Contract 02-10 which provides engineering construction services for the Highway 7/Wooddale Avenue Interchange Project - Project No. 2004-1700. 4e. Approve Resolution No. 10-153 establishing W. 44th Street as a Municipal State Aid Street. 4f. Adopt Resolution No. 10-154 committing specific revenue sources to special revenue funds and approve amendments to the City's Fund Balance Policy. 4g. Adopt Resolution No. 10-155 authorizing fund equity transfers and fund closings and Adopt Resolution No. 10-156 approving interfund loans. 4h. Approve a one year contract with three option years with HLB Tautges Redpath, LTD for auditing services. 4i. Adopt Resolution No. 10-157 authorizing bank signatories and opening of money market account. 4j. Adopt Resolution No. 10-158 authorizing the special assessment for the repair of the sewer service line at 5912 Minnetonka Boulevard - P.I.D. 09-117-21-34-0191. 4k. Approve for Filing Planning Commission Minutes September 15, 2010. 41. Approve for Filing Planning Commission Minutes October 6, 2010. 4m. Approve for Filing Planning Commission Minutes October 20, 2010. 4n. Approve for Filing Planning Commission Minutes November 17, 2010. 4o. Approve for Filing Vendor Claims. 4p. Approve for Filing Housing Authority Minutes November 10, 2010. City Council Meeting -4- December 20,2010 Mr. Harmening advised that a letter was received from Dairy Queen indicating that it was formally withdrawing its application; as a result, agenda item 8a (Dairy Queen — Conditional Use Permit for In-Vehicle Service) should be removed from the agenda. It was moved by Councilmember Ross, seconded by Councilmember Santa, to approve the Agenda as amended to remove Agenda Item 8a (Dairy Queen — Conditional Use Permit for In-Vehicle Service), approve items listed on the Consent Calendar, and to waive reading of all resolutions and ordinances The motion passed 6-0. 5. Boards and Commissions-None 6. Public Hearings 6a. Public Hearing and Resolution Approving Establishment of the Hardcoat Tax Increment Financing District Resolutions No. 10-159 and No. 10-160 Mr. Hunt presented the staff report and indicated this item was approved earlier this evening by the EDA and requires Council ratification. 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. 10-159 adopting a Modification to the Redevelopment Plan for Redevelopment Project No. 1; Establishing the Hardcoat Tax Increment Financing District Therein and Adopting a Tax Increment Financing Plan Therefo; and to adopt Resolution No. 10-160 approving internal Loan for Advance of certain costs in connection with Hardcoat Tax Increment Financing District. The motion passed 5-1 (Councilmember Finkelstein opposed). 7. Requests, Petitions, and Communications from the Public—None 8. Resolutions, Ordinances,Motions and Discussion Items 8a. Dairy Queen—Conditional Use Permit for In-Vehicle Service This item was removed from the agenda. 8b. Namakan Properties—Registered Land Survey (RLS) Hwy 7/Blake Road Resolution No. 10-161 Ms. McMonigal presented the staff report and stated that Namakan Properties proposes to purchase a portion of the Mn/DOT right-of-way adjacent to the building which requires Council approval of a Registered Land Survey in order to convey a portion of the property from Mn/DOT to Namakan Properties. She advised that Namakan Properties proposes to use the Mn/DOT property for additional parking which will enable them to City Council Meeting -5- December 20,2010 lease the remaining tenant space more easily. She noted that the Planning Commission reviewed the request and recommended approval. Councilmember Mavity asked if any consideration or study was conducted with respect to the stormwater management in this area since this portion of the property will go from being green space to pavement. She expressed concern about the amount of pavement on the site. Ms. McMonigal stated that typically if a site is small enough, it does not meet the requirements for stormwater. She indicated that approximately one-half of the Mn/DOT property will be retained in case the intersection is changed in the future. Councilmember Santa stated that this is an area with a building on it that has been under- utilized because of the parking issues and was pleased to see that the property will get the parking it needs to provide an opportunity for the businesses to be more successful. She indicated she was also pleased to see the City was recommending retaining some of the land around the monument which already has nice landscaping. She added that the drainage in that area has historically been very good. It was moved by Councilmember Santa, seconded by Councilmember Finkelstein, to adopt Resolution No. 10-161 giving approval for a Registered Land Survey (RLS)for Namakan Properties at Highway 7 and Blake Road. Councilmember Mavity stated that she will support this request and it is important to promote City businesses to the extent possible. She requested that the City remain very attentive to these kinds of stormwater management issues when creating larger surface parking lots in otherwise green space areas. Mr. William Bailey, Namakan Properties, appeared before the City Council and stated that the property he is purchasing from Mn/DOT is currently being used for parking by all the businesses. He noted that Mn/DOT re-did the storm sewer in this area when it created the cul-de-sac, so it was engineered with stormwater in mind. He expressed his thanks and appreciation to City staff and particularly to Gary Morrison for assisting him with this project. The motion passed 6-0. 8c. Second Reading—Ordinance Providing for a Local Lodging Tax Ordinance No. 2396-10 Mr. Hunt presented the staff report and stated that for over a year, Council has been discussing the formation of a convention and visitors bureau (CVB) as a means of promoting St. Louis Park as a tourism destination to stimulate additional economic activity. He indicated that significant research was conducted and considerable discussion held with local stakeholders. He advised that the primary revenue source for CVBs in Minnesota is a local lodging tax and state law allows imposing a tax up to 3% of gross receipts of room rentals for the purpose of marketing and promoting the City. He noted that there are currently 26 metro area communities that have adopted a local lodging tax of at least 3% and the proposed Ordinance authorizes a 3% local lodging tax effective March 1, 2011. He presented copies of letters received from the Mamott City Council Meeting -6- December 20,2010 Minneapolis West, CSM Properties, TownePlace Suites, SpringHill Suites, and the Doubletree Hotel Minneapolis-Park Place urging a "no" vote; in addition, a letter from Torgerson Properties indicating mixed support for the CVB, as well as a letter of support from Park Nicollet Melrose Institute. He also presented a summary of reactions of select areas companies relative to the CVB concept from Bruce Nustad at TwinWest Chamber of Commerce. Ms. Robbie Sullivan, Area Director of Sales and Marketing for CSM Lodging, appeared before the City Council and expressed her appreciation for the approach taken by the City in this process and for asking the hotel community about its concerns. She stated that as a hotelier, she does not see this as the right time for the formation of a CVB and to impose a local lodging tax. She stated that she felt an additional 3% tax would create a competitive disadvantage for their hotels when looking at the proximity of St. Louis Park to Minnetonka or Plymouth. She expressed concern about the infrastructure required to support a destination type of organization, and stated that St. Louis Park does not have a convention center that draws groups into the area, nor does it have sports facilities for different types of athletic events. She stated that she did not feel there was a base that was strong enough for a CVB in St. Louis Park and felt it would make more sense if a multi- city CVB were formed that would level the playing field for all hotels on the 394 strip. Mr. Joel Carver, Vice President of Sales and Marketing for CSM Lodging, appeared before the City Council and stated that while they applaud the City and the TwinWest Chamber of Commerce for its desire to market and improve the City, he did not feel it was appropriate at this time to form a CVB based on the economic conditions that exist today. He stated he was concerned with the change in the competitive landscape and a 3% lodging tax causes them serious concern. He expressed significant concern that the lodging tax will shift business from other parts of the Twin Cities and not bring business in to St. Louis Park hotels. He stated that he felt the CVB presents a phenomenal opportunity,just not at this time, and requested the Council to vote"no." Mr. Fred Talerico, General Manager of Marriott Minneapolis West, appeared before the City Council and agreed with Ms. Sullivan and Mr. Carver. He noted that their hotel sits across from another hotel located in Minnetonka and a lodging tax would put them at a disadvantage in going after businesses or overnight accommodations to surrounding hotels that are not subject to the same lodging tax. Mr. Sandy Buonanni, General Manager of Doubletree Hotel Minneapolis-Park Place, appeared before the City Council and agreed with Ms. Sullivan and Messrs. Carver and Talerico. He stated from their standpoint, their hotel must remain very competitive when fighting in a market that is so close to downtown Minneapolis. He indicated that the CVB would be funded from other fees collected throughout the year, including membership fees, and he felt that it would be difficult for their hotel to decide whether to join the CVB or the TwinWest Chamber. He added that it would come down to a choice of which entity can and should support their business. Mr. Mike Kottke, Director of Sales and Marketing of Doubletree Hotel Minneapolis, urged the Council to vote "no." He stated that Torgerson Properties indicated it would support the CVB if a majority of hoteliers were behind it and there are a lot of individuals here this evening who do not support the CVB. He stated that he felt this was the wrong time for a lodging tax and the tax would be unfair to the local hoteliers. City Council Meeting -7- December 20,2010 Ms. Gayle Junnila, Metro Regional Manager for Explore Minnesota Tounsm, appeared before the City Council and discussed Explore Minnesota Tourism's mission, the marketing and advertising opportunities within the Minnesota tourism industry, and how Explore Minnesota can support tourism marketing at the CVB level and help increase tourism in the metro region. She presented the Council with copies of the "Minneapolis Saint Paul Area Playbook," a publication produced for consumer inquiries to bring people into the area. She stated that she understands it is highly competitive right now, tounsm is down, and meetings and conventions are decreasing, but felt that more marketing and more promotion will help bring tourists and businesspeople into a community. Mr. Michael Landstad, Senior Property Manager for the West End development and Duke Realty, appeared before the City Council and expressed support for the CVB initiative. He stated that having a CVB would help promote the common good of all businesses in the City and help the City as a whole. He indicated that in the long run, a well-run CVB has been proven to generate revenue to that city. He added that he felt it would be a disservice not to offer a professionally operated CVB that promotes the businesses within the City. Mr. Jatin Setia, Executive Director, Twin Cities Film Fest, appeared before the City Council and stated that the first Twin Cities Film Festival was held this year in downtown Minneapolis and at Mall of America. He noted that the Film Festival's Board recently approved moving the Film Festival to the West End and will run for six days in the fall of 2011. He stated that a CVB is crucial for their organization to help promote the City and to promote St. Louis Park as a destination. He added that the Film Festival is looking forward to a long term relationship with the City and having a CVB could only benefit the City overall. Councilmember Ross stated that there appeared to be early buy-in for the CVB concept from the local hoteliers and requested that the speakers address their change of heart. Mr. Carver stated that they were involved in the early discussions and the reality is that we are in unprecedented economic times, with declining rates and occupancies. He indicated that revenues across the country and in the Twin Cities, including St. Louis Park, have suffered a greater decline than projected and they have been losing market share in the Twin Cities. He stated the local hoteliers wanted a clear indication of how business would come in from external markets to this area to assure that the City was not trying to take business away from other parts of the Twin Cities. He stated that they want St. Louis Park to retain its healthy competitive advantage and a CVB has the potential to move business away because of the tax rate. He added that they applaud the City's efforts in creating a CVB,but agreed with the others that this is not the appropriate time. Councilmember Ross requested further information regarding what the hotels are doing to make sure that their rates are affordable for families who stay in their hotels. Ms. Sullivan stated that approximately 64% of their business is transient and the remainder represents groups. She stated that while they are looking to make sure they offer affordable options for travelers and grow their weekend business, their opportunity is to grow occupancy at a competitive rate, not necessarily the lowest rate. She indicated that they contacted the Melrose Institute to find out which hotels they would refer clients to, and were told that they referred clients to the Hampton Inn in Minnetonka or Holiday Inn in Golden Valley. City Council Meeting -8- December 20,2010 Councilmember Finkelstein noted that 26 out of 32 suburbs with over a 1.5 million population have a CVB and charge a lodging tax. Councilmember Omodt stated that he is a proponent of aggressive marketing and as a business traveler, price is not at the top of his list. He stated that he supports the CVB and felt it would put St. Louis Park in a much better position in terms of being a destination and having many things to offer. Mayor Pro Tern Sanger asked if there is anything in the ordinance that would preclude the City from expanding to a multi-city CVB. She stated that the hoteliers have expressed concern that the City cannot precisely specify up front how the CVB marketing will work and what the return on that investment will be. She stated that the City will not be running the CVB and will be governed by a separate Board of Directors, which will include hotel and business representatives, and which will have power and authority to develop marketing plans and will have responsibility for calculating the return on investment. She added that the Board of Directors will be responsible for evaluating and defining whether the CVB is successful and if the Board came to the conclusion that the CVB was not working as well as hoped, the CVB could be dissolved. She noted that the CVB will not be an overnight success and that it will take time to organize and build the brand. . Mr. Hunt stated that this is correct and stated that the Council also has the ability to choose to review how well the CVB is fulfilling its goals and objectives. Councilmember Mavity acknowledged the concerns of the hoteliers but was supportive of the CVB. She stated that Council talked about having a five year look-back provision that would provide an opportunity to make sure there has been a return on investment based on measurable evaluation data. Councilmember Ross stated that she understands these are tough economic times but felt that in order to make money, the City needs to invest as well. She proposed an amendment to the ordinance in order to make this a win-win for everybody whereby the City would have five year look-back language to revisit the CVB model at the end of that time to see if it is effective and to examine the return on investment in order to demonstrate that the CVB is working for St. Louis Park and for the local hotels. Councilmember Santa questioned whether the Council can bind a future Council to an action. Mr. Scott explained that the language in the ordinance does not need to be amended to reflect this five year look-back provision. He suggested that Council approve the second reading of the Ordinance as presented and to direct staff to review the CVB in five years to determine how things are working with the CVB. It was moved by Councilmember Ross, seconded by Councilmember Omodt, to adopt second reading of Ordinance No. 2396-10 amending Chapter 8 to add a New Article Providing a Local Lodging Tax. Councilmember Finkelstein suggested a friendly amendment to the motion adding that the City review the operation of the CVB in five years. City Council Meeting -9- December 20,2010 Councilmember Ross agreed to Councilmember Finkelstein's friendly amendment. Councilmember Omodt seconded Councilmember Finkelstein's friendly amendment. Mayor Pro Tern Sanger suggested a friendly amendment to the motion that the City review the operation of the CVB no later than five years after formation of the CVB. Councilmember Ross agreed to Mayor Pro Tern Sanger's friendly amendment. Councilmember Omodt seconded Mayor Pro Tern Sanger's friendly amendment. The motion passed 6-0. 8d. Adoption of 2010 Revised Budget, 2011 Budgets, 2011 City and HRA Property Tax Levies, 2011 —2015 Capital Improvement Plan and 2011 Utility Rates. Resolutions No. 10-162, 10-163, 10-164, 10-165 Mr. Swanson presented the staff report and stated that the levy increase of 4% from 2010 represents an increase of approximately $898,000; this levy represents a decrease from the proposed 4.88% preliminary levy approved by Council in September. He presented the 2011 proposed General and Park and Recreation Fund Budgets and a summary of the Enterprise, Internal Service, Special Revenue, and relevant Capital Projects Funds for 2011. He also presented the 2011-2015 Capital Improvement Plan which shows $168 million in planned investments over the next five years; $57 million of this amount represents resources that the City controls and the remaining is based on federal, state and county grants or funding. He then presented the proposed 2011 utility rates and noted that staff analyzed the rates in the City's four utility funds and determined that rate adjustments were needed to maintain the long term sustainability of each of these funds. Councilmember Finkelstein stated that Council held several meetings with staff regarding the budget and stated that he would support the 2011-2015 Capital Improvement Program and the 2011 utility rates, but would not support the 4% levy. He stated he felt that based on previous Council discussions, the City could make do with a 2.95% levy and still meet the capital needs of the City as well as maintain an appropriate fund balance. He stated that a 4% levy will place the City's fund balance above 40%, which exceeds the amount set by Council policy. He added that any concern about levy limits by the State or the concern that the City needs to save money is not a good enough reason to levy at 4%. Councilmember Mavity stated that the Council has all of the residents in mind and is trying to do the right thing. She stated that Council received public testimony at the Truth in Taxation hearing about the struggles residents are facing and their fears of increased property taxes,but felt there is a reason that St. Louis Park residents are willing to pay more because they want quality services and the Council wants to make sure the City has the ability to continue to provide that level of quality services. She noted that the 4% levy represents a decrease from what Council passed in September and the impact to residents on an annual basis will be minimal. Councilmember Santa expressed her support for the 4% levy and stated that it was prudent to remember that the wonderful work that the City does comes at a cost in terms City Council Meeting -10- December 20,2010 of overtime for snowplowing, use of additional fuel, equipment wear and tear, and additional road chemicals. Councilmember Omodt stated that the budget and levy decisions were not made lightly by Council as evidenced by the numerous meetings and study sessions attended by Council and City staff. He pointed out that if the levy for 2011 were less than 4%, the City would be required to levy almost 6% in 2012; it was decided that a more consistent level of levy amounts in 2011 and 2012 was more appropriate. He added that he did not support the 2011 utility rates because he did not believe that a tiered water system makes sense, it does not lower usage, and there is no data to support that tiered water rates conserve water. Mayor Pro Tern Sanger stated that she supports the 4% levy and it is important for the City to conduct long range financial planning and to look beyond what the City can get by with in one year without long term repercussions. She indicated that the City's fund balance will be shifted to address deficits in a number of other budgets and will leave the City with a General Fund balance within the limits set by Council policy and the State Auditor requirements. She added that cutting the City's budget further makes no difference in dollars to the average homeowner, but it makes a big difference to the City in terms of being able to cope with changes that the legislature may impose, including levy limits and cutbacks in services provided by the State. It was moved by Councilmember Santa, seconded by Councilmember Omodt, to adopt Resolution No. 10-162 adopting the 2010 Revised General and Park and Recreation Funds Budgets, 2011 Budgets and Adopting the 2011 Final Property Tax Levy. The motion passed 5-1 (Councilmember Finkelstein opposed). It was moved by Councilmember Santa, seconded by Councilmember Mavity, to adopt Resolution No. 10-163 approving the 2010 HRA Levy Collectible in 2011. The motion passed 6-0. It was moved by Councilmember Santa, seconded by Councilmember Mavity, to adopt Resolution No. 10-164 adopting the 2011-2015 Capital Improvement Program. The motion passed 6-0. It was moved by Councilmember Santa, seconded by Councilmember Mavity, to adopt Resolution No. 10-165 setting Utility Rates. The motion passed 5-1 (Councilmember Omodt opposed). Se. 2011 Employee Compensation Resolution No. 10-166 Ms. Gohman presented the staff report and stated that a 2.25% salary increase for non- union employees effective 12/31/10 and a 0% increase for 2011; this follows the pattern of wage increases for the Police Officer and Sergeant groups and falls in line with the budget adopted this evening. She stated that each year, Council approves participation in City Council Meeting -11- December 20,2010 the volunteer firefighters benefit program; cost for the program is $247. She indicated that the paid on-call firefighter performance program recommends a 2.25% increase effective January 1, 2011. She noted that Council took a decrease in 2010 wages and department heads received a 0% increase in 2010 with other employees receiving 1% January 1, 2010 and no increase by the employer for benefits contribution. City Manger salary will be reviewed upon completion of the performance evaluation process early 2011. Councilmember Santa stated that one of the first things she heard as a new Councilmember was the willingness of City staff to work with the City in meeting its financial challenges. She added that she takes pleasure in approving a 2.25% salary increase. It was moved by Councilmember Santa, seconded by Councilmember Finkelstein, to adopt Resolution No. 10-166 confirming compensation for Non-Union Employees; continuing participation in the Volunteer Firefighter Benefit Program, and continuing Performance Program Pay for Paid-on-Call Firefighters. Councilmember Omodt stated that the City does not work without the effort from a lot of good people, and that effort does not go unnoticed. He stated that staff worked hard to make the budget possible and he hoped that the public recognizes that effort because it is not without personal sacrifice by the City's 240 employees because each and every one of them has worked hard to make the budget work for all taxpayers. He expressed his thanks to all City staff for their sacrifices on behalf of the City. The motion passed 6-0. 9. Communications Mr. Harmening requested that residents move their vehicles from the street due to the snow emergency so that the streets can be plowed effectively. Councilmember Ross expressed her thanks to the Hennepin County Board of Commissioners for the $200,000 grant for the Northside Park project. Mayor Pro Tern Sanger stated that she attended the grand opening of the new park shelter and warming house at Birchwood Park and invited residents to go skating and enjoy the warming house. She expressed her thanks to City staff for completing the project at an economical pnce. Mayor Pro Tern Sanger stated that the Council would not be meeting again until January 3'd and wished everyone a happy holiday. 10. Adjournment The meeting adjourned at 9:16 p.m. Nancy Stroth, ity Clerk Jeff Jac s bs, Ma,or