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HomeMy WebLinkAbout2010/06/21 - ADMIN - Minutes - City Council - Regular /I St. Louis Park OFFICIAL MINUTES MINNESOTA CITY COUNCIL MEETING ST. LOUIS PARK, MINNESOTA JUNE 21, 2010 1. Call to Order Mayor Pro Tern Sanger called the meeting to order at 7:31 p.m. Councilmembers present: Mayor Pro Tern Sanger, Phil Finkelstein, Paul Omodt, and Julia Ross. Councilmembers absent: Mayor Jeff Jacobs,Anne Mavity, and Sue Santa. Staff present: City Manager (Mr. Harmening), Controller (Mr. Swanson), and Recording Secretary (Ms. Hughes). Guest: Brad Falteysek,Audit Partner,Abdo Eick & Meyers, LLP. 1 a. Pledge of Allegiance 1 b. Roll Call 2. Presentations 2a. Recognition of Catherine Tarsney Mayor Pro Tern Sanger recited the Proclamation honoring exemplary St. Louis Park High School graduate Catherine Tarsney, winner of the Tournament of Champions' 2010 Lincoln-Douglas Debate, a national high school debate event sponsored by the University of Kentucky. She stated that Ms. Tarsney was declared the winner by a rare, unanimous decision of the nine judges. The City Council extended their congratulations to Ms. Tarsney. 2b. Tom Gasman Retirement Recognition Mayor Pro Tern Sanger recited the Resolution recognizing the contributions of and expressing appreciation to Tom Gasman for his 27 years of service to the City. The City Council extended their thanks to Mr. Gasman for his dedicated service and wished him the best in his retirement. 2c. Friends of the Arts Presentation of Our Town: Verses and Voices Program Mayor Pro Tern Sanger introduced Susan Schneck, President of Friends of the Arts. Ms. Schneck stated that Friends of the Arts (FotA) has been in existence for 15 years operating as a nonprofit, independent community organization dedicated to enhancing the arts in St. Louis Park. She explained the program called Our Town: Voices & Verses and the selection of Diane Pecoraro as the City's first Community Poet. She stated that this City Council Meeting -2- June 21,2010 program also includes the Favorite Poem project wherein community members were asked to submit their favorite poems and that 12 were selected to be published in the 2010-2011 city/school calendar. She added that the selections will also be read at the unveiling of the calendar on July 22nd at the West End Community Room. She discussed the FotA's poetry workshops offered to residents with the goal of creating a Renga which is a collaborative poem that will be published in the 2010-2011 school calendar. She stated that FotA also selected a best youth poem for 7-12th grade writers and Ryan McCanna's poem was selected. She advised that FotA was contacted by Twin Cities Public Television and the League of Minnesota Cities about an upcoming program on arts in Minnesota communities, representatives from FotA were interviewed, and St. Louis Park has been selected as one of three communities to be highlighted in the program to be aired in August She expressed FotA's appreciation to the City Council for its support, as well as the Community Foundation, the Park Nicollet Foundation and the Metropolitan Regional Arts Council. She directed residents to the website for Friends of the Arts at www.slpfriendsofthearts.org; the organization is also linked on the City's website. Diane Pecoraro, Community Poet, read one of her poems entitled "Alligator Poem." Ryan McCanna read her poem that was awarded Best Youth Poem by the Hennepin County Library. Mayor Pro Tern Sanger expressed the City Council's thanks to Ms. Schneck and Friends of the Arts for their efforts in promoting the arts and in promoting a sense of community through various art mediums. 2d. Presentation of 2009 Financial Statements —Auditors Presentation Mr. Swanson presented the staff report and introduced Brad Falteysek, Audit Partner from Abdo Eick & Meyers, LLP. He stated the City received an unqualified, or clean, audit opinion with no audit findings. Mr. Falteysek presented the management letter, annual financial report, and the single audit for federal awards programs. He provided an overview of the management letter and stated that the City's financial statements are in all material respects in accordance with generally accepted accounting principles and contain no material misstatements. He advised that the management letter contains no findings with respect to the City's internal controls or compliance with state statutes. He explained that the City is required to prepare a single audit of its Federal expenditures in any calendar year in which it has over $500,000 in Federal expenditures, no issues were found with respect to these funds and the management letter contains no findings in this regard He then reviewed the results of the financial statements and the general fund revenues and expenditures which showed revenues exceeded budget by approximately $530,000. He noted that the City had a decrease of approximately $650,000 in market value credit, resulting in the City adjusting its budget accordingly. He also reviewed the City's revenues by source, which showed 63% of revenues in the general fund coming from taxes. He explained that overall spending per capita is consistent with the City Council Meeting -3- June 21, 2010 City's peer groups. He reviewed the specific revenue funds representing legally restricted funds with specific revenue sources on specific expenditures, and stated that these funds are relatively consistent with prior years. He discussed the capital projects funds, for specific building projects and street projects, and stated that the street capital funds had an approximate $5 million deficit at year end; staff is currently looking at ways to reduce this deficit balance. He also discussed the City's debt service funds and stated the cash balance and total assets did not change much from the prior year and the City has revenue sources to cover its bond payments. He then reviewed the City's enterprise funds and noted that the City's water fund ended with a $350 cash balance; the City will need to review its fees to make sure it can cover its expenses and generate future positive balances. Mr. Swanson pointed out that the City issued bonds in 2010 for both the water and storm water utilities which will help with the cash position in these funds. He added that the City's long range financial management plan includes a provision for issuing more debt in the future and maintaining more positive fund balances. Councilmember Finkelstein stated that the City is obligated to make each of the enterprise funds self-supporting and this is what determines the City's rates. Mr. Falteysek stated that the City's debt per capita is $577, which is well below the peer group at $1,485. He stated that the City's taxes per capita is $625, compared to the peer group at $408. Mr. Swanson noted that the City relies much more on taxes because the City does not receive market value credit or local government aid. Mr. Falteysek stated that the City spends approximately $793 per capita on general expenditures, while the peer group spends approximately $593. He indicated that the City spends approximately $218 per capita on capital expenditures, while the peer group spends approximately $304. He noted that the City's aging infrastructure will require more repair and maintenance costs. Mr. Swanson stated it is important to remember that the City carries a higher fund balance which is still within the Office of the State Auditor's recommended guidelines in order to pay for operations or for capital use because of the schedule Hennepin County establishes in receiving property tax monies from the state. He added that the City's financial statements will be available on the City's website after June 30`h 3. Approval of Minutes 3a. Study Session Minutes of May 24, 2010 The minutes were approved as presented. 3b. City Council Minutes of June 7, 2010 City Council Meeting -4- June 21,2010 The minutes were approved as presented. 3c. Special Study Session Minutes of June 7, 2010 The minutes were approved as presented 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. Motion to adopt Resolution No. 10-063 requesting funding from Mn/DOT through the Municipal Agreement Program for Street Project — Highway 7 and Louisiana Avenue Intersection, Project No. 2012-0100. 4b. Motion to adopt Resolution No. 10-064 designating Polling Places and Appointing Election Judges for 2010 Elections. 4c. Motion to designate Ron Kassa Construction, Inc. the lowest bidder and authorize execution of a contract with the firm in the amount of $116,190.00 for the 2010 Random Concrete Repair Project No. 2010-0003, 0004, & 0006. 4d. Motion to approve Resolution No. 10-065 recognizing Tom Gasman's retirement after 27 years of service. 4e. Motion to approve right of way purchase in the amount of $543,000 for Parcel 3 (the McGarvey Coffee Property, owned by the Sara Lee Corporation) Highway 7/Wooddale Interchange Project —.Project No. 2004-1700, and authorize the City Attorney to execute stipulation of settlement. 4f. Motion to approve for filing Planning Commission Minutes May 19, 2010 4g. Motion to approve Vendor Claims for filing. It was moved by Councdrnember Omodt, seconded by Councilmember Ross, 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 4-0. 5. Boards and Commissions - None 6. Public Hearings - None 7. Requests, Petitions, and Communications from the Public — None 8. Resolutions, Ordinances, Motions and Discussion Items City Council Meeting -5- June 21, 2010 8a. Sale and Issuance of Educational Facility Revenue Notes for the Groves Academy Project— Series 2010 Resolution No. 10-066 Mr. Swanson presented the staff report and stated that Groves Academy is requesting that the City issue private activity revenue bonds in an amount not to exceed $4,590,000 for the purposes of refunding existing debt and financing the completion of the facility's expansion project. John Utley, Kennedy Graven, appeared before the City Council and stated it is important to note that these revenue bonds will be secured by revenues generated exclusively by Groves Academy, with no obligation on the part of the City, and the issuance of the bonds will not impact the City's bond rating or its ability to borrow money. Councilmember Omodt stated that Groves Academy is a valuable partner and it is great to see them expanding their facility and offering more activities It was moved by Councilmember Omodt, seconded by Councilmember Finkelstein, to adopt Resolution No 10-066 Authorizing the Issuance and Sale of Educational Facility Revenue Bonds (Groves Academy Project), Series 2010, in the Original Aggregate Principal Amount of$4,590,000;Approving the Form of and Authorizing the Execution and Delivery of the Bonds and Certain Related Documents; and Providing for the Security, Rights, and Remedies with Respect to the Bonds. The motion passed 4-0. 9. Communications Councilmember Omodt expressed the City Council's congratulations to the Benilde lacrosse team on winning the state tournament. Councilmember Finkelstein stated that the Parktacular event over the weekend was a great success and expressed the City Council's appreciation to Joan Fenton, Ann Thomas, and the countless volunteers for their efforts. He stated that the splash parry that was cancelled due to inclement weather will be rescheduled; further information is available at www.parktacular.org or on the City's website. 10. Adjournment The meeting adjourned at 8.31 p.m. Nancy Stroth, City Clerk Jeff J c s, ayor