Loading...
HomeMy WebLinkAbout2010/01/11 - ADMIN - Minutes - City Council - Study Session IIISt. Louis Park OFFICIAL MINUTES MINNESOTA CITY COUNCIL STUDY SESSION ST. LOUIS PARK, MINNESOTA JANUARY 11, 2010 The meeting convened at 7:00 p.m. Councilmembers present: Mayor Jeff Jacobs, Phil Finkelstein, Anne Mavity, Julia Ross, Susan Sanger, and Susan Santa (arrived at 7:08 p.m.). Councilmembers absent: Paul Omodt. Staff present: City Manager (Mr. Harmening), Public Works Director (Mr. Rardin), Human Resources Director (Ms. Gohman), Inspections Director (Mr. Hoffman), Utilities Superintendent (Mr. Anderson), Finance Manager (Mr. Swanson), Organizational Development Coordinator (Ms. Gothberg), and Recording Secretary (Ms. Hughes). Guests: Senator Ron Latz, Hennepin County Commissioner Gail Dorfman, Representative Steve Simon, Representative Ryan Winkler, Vic Moore (Franzen & Associates), and Emily Gehrman (Lockridge, Grindal Nauen, PLLP), Mark Ruff and Elizabeth Diaz (Ehlers &Associates). 1. Future Study Session Agenda Planning—January 19 and January 25, 2010 Mr. Harmening presented the proposed special study session agenda for January 19 and the proposed study session agenda for January 25, 2010. He noted the intent of the special study session on January 19 is to provide Council with an overview of the bargaining units in the City and an overview of the entire collective bargaining process. Councilmember Finkelstein suggested having Ms. Gohman provide this overview rather than Scott Lepak as a way to save money for the City. 2. 2010 Annual Legislative Update Mr. Harmening presented the staff report and introduced the City's guests present at the meeting. He stated that transportation will continue to be a significant area of focus in 2010, particularly with respect to Highway 100 and Mn/DOT's rescoping of the project and Highway 7 and Louisiana. Councilmember Mavity asked if there is anything the City should be pursuing at the state level regarding light rail. Commissioner Dorfman stated that the County currently has enough funding to carry the County through the planning stage in 2010; the County continues to seek funding for future years. She reported that the County has created a Community Works Project as a means of developing a framework that can guide some individual planning around the stations. She indicated the County will be sending a letter to the City requesting further input on the project. Commissioner Dorfman stated the County has prepared a draft Request for Proposal (RFP) for the freight rail study and Mn/DOT has agreed to pay for half of this study. She noted the draft will be Study Session Minutes -2- January 11, 2010 provided to the City in the next couple of weeks, with an issue date scheduled for late January or early February. She stated that Met Council Chair Peter Bell has asked for a resolution from all of the cities endorsing the Southwest Transitway Locally Preferred Alternative (LPA) and this resolution is requested prior to January 27, 2010. Representative Simon stated he recently spoke with the Chair of the Capital Investment Committee who indicated that the Southwest Transit funding request will be approved this year. He noted that the bill has several transit corridors seeking similar requests, which will be bundled together, totaling $7 million. Councilmember Sanger asked if funds have been identified for mitigation for the impacts of rerouting freight rail traffic. Commissioner Dorfman replied that 30% has been set aside in a total pool of $1.2 billion for mitigation for light rail, freight rail relocation and mitigation. She added the County would look to the Federal Rail Authority and Mn/DOT for additional monies. Mr. Moore requested an update with respect to the Glencoe switching yard and noted that the bonding allocation expires next year. He stated if the City feels this will not come to fruition, the City might want to consider requesting that money for other projects. Mr. Harmening stated there is still a major funding gap of several million dollars for that project and it appears Glencoe and other cities are losing interest. He concurred that it would be a good idea to think about other ways to use the $700,000 that was approved in the previous bonding bill. It was the consensus of the City Council to consider other uses for the previously approved $700,000 bonding allocation. Mr. Moore requested input regarding the proposed sales tax exemption for the fire stations. He stated he did not feel it was likely the proposed sales tax exemption would pass. Councilmember Sanger asked if the argument could be made that a sales tax exemption is proper given the fact that the City does not receive LGA or market homestead credit, that the City missed out on qualifying for stimulus funds, that the City's projects are shovel ready, create jobs, and that without the exemption the projects would not otherwise be able to be built. It was determined that staff and legislators should continue to discuss the merits of introducing such a bill. Ms. Gehrman provided a written update on the federal transportation bill (SAFTEA-LU) and the Transportation Investment to Generate Economic Recovery (TIGER) grant relating to Highway 7 and Louisiana. She stated they have submitted projects for consideration for funding in the six-year bill, but the outcome of this bill is still uncertain. Study Session Minutes -3- January 11, 2010 Councilmember Sanger suggested requesting support from the legislators in neighboring cities for the Highway 7 and Louisiana Avenue project. Councilmember Finkelstein stated if the City does not obtain other funding from the County and/or State for Highway 7 and Louisiana, the City may have to delay the project because the project is too large and too expensive for the City to do on its own. Mr. Harmening stated the other major transportation project is Highway 100 and Mn/DOT's plan to rescope the project. He asked if the legislators could provide any assistance to the City in changing Mn/DOT's approach to the project. Senator Latz suggested that Mr. Moore follow-up with Senator Michel from Edina. Representative Simon stated it would also be helpful to approach the Chamber of Commerce to ask the Chamber to become re-engaged in the project. Mr. Harmening stated it might also be helpful to meet with Transportation Commissioner Sorel. It was the consensus of the City Council to contact the Chamber of Commerce to invite them to participate in a coalition with respect to Highway 100, and to also schedule a meeting with Transportation Commissioner Sorel. City Council also requested staff to follow up with the leadership of Golden Valley to determine Golden Valley's interest in being part of the discussion regarding Highway 100. Representative Simon stated he would report back to the Council following contact with the Chamber of Commerce. Commissioner Dorfman also suggested it would be helpful to educate the gubernatorial candidates regarding Highway 100. Councilmember Sanger asked if Senator Franken is aware of the City's needs and issues. Ms. Gehrman stated they have met with his staff as well as Senator Klobuchar's staff. Mr Harmening indicated he would contact Senator Franken to arrange a meeting. Mr. Harmening stated that Commissioner Dorfman has been supportive of the City's grant application for 2011 athletic facility funding for improvements at Northside Park, funded via the stadium tax. He stated the City did not get funding this year, but the project was viewed quite favorably and the City will resubmit its grant application in the spring. He stated another project that Commissioner Dorfman has assisted with is the environmental response fund, which provides assistance to the City in disposing of soils at the MSC project; a recommendation for $535,000 will go to the County soon. Study Session Minutes -4- January 11, 2010 Mayor Jacobs expressed the City Council's appreciation to everyone for their hard work on behalf of the City. 3. 2010 Utility Rate Study Mr. Harmening presented the staff report. Mr. Ruff presented the Water, Sanitary, Storm Sewer and Solid Waste Utility Rate Study and noted that utility rates are becoming a larger issue for several cities. He stated the Department of Natural Resources has indicated that while water usage in Minnesota has not reached a critical stage, the DNR is concerned about future generations and is encouraging tiered rates. He reviewed the factors impacting the amount of water usage and the historic trend of cash balances in the water fund, noting that the City's cash balance has dropped dramatically because of capital spending. He also reviewed the current water rate structure and the proposed tiered rate structure with a recommended 7% increase in single-family rates. He explained the usage charges for commercial users and proposed tiered rates, noting that current irrigation connections are charged at the lowest tier and it is proposed that they be charged at the highest tier. Mr. Ruff stated that the tiering approach tends to provide some incentive to change the way in which water is used and to impact consumption. Councilmember Sanger asked if there is some way the City can ban the practice of having irrigation systems running while it is raining or after a significant rainfall. Mr. Anderson stated that new commercial systems must have mechanisms in place to prevent the system from running during a rain event; however, it is currently not required of all users but something that could be mandated by ordinance. Councilmember Sanger raised a concern about whether the City can and/or should be assuming that residents will water trees planted by the City. The City Council discussed high volume commercial users and the impact of the proposed tier structure. The Council also discussed the goal of the capital portion of cash reserves in the water fund. Councilmember Santa requested that the City Council further discuss fixed capital expenses, particularly with respect to Reilly Tar. Councilmember Sanger asked if there is any realistic possibility of reopening the consent decree agreement as a way of reducing the amount of capital costs spent on Reilly. She also requested information regarding potential capital projects contemplated in the next 5-6 years that require funding. Mr. Rardin stated that in 2015, if all criteria are met, staff will be able to start the process to terminate some of the provisions contained in the agreement. He added the City is obligated to Study Session Minutes -5- January 11, 2010 continue testing due to the provisions in the decree. He stated that future capital projects include water treatment plant #1 and the recoating of the water towers at Park Glen Road and behind Knollwood Mall. Mr. Ruff then reviewed the current and proposed sewer rate structure. He stated the recommendation is to increase the fixed fee to $11.40 per quarter in order to provide for operations, capital and projected debt. Mr. Ruff presented the proposed storm sewer utility rates, noting that the proposed fee would increase by $1.00 to $14.50 per quarter. He noted that this is one area where mandates are increasing significantly so there may be additional costs as a result of Watershed or State action. Mr. Ruff presented the proposed solid waste rates, noting a modest 4% increase in quarterly rates. He then provided a comparison of rates in comparable cities for residential and commercial users. Councilmember Finkelstein expressed concern about the proposed increases, particularly with respect to commercial users. He stated it is important to remain cognizant of the City's competitive position versus other cities and about being a place where business is being done and how to keep those businesses in the City. He added that in the past the City has had a tendency to draw down its accounts to pay for capital needs, and the City may need to revisit that in view of the historically low interest rates and consider issuing debt. Mr. Harmening stated the City Council will continue its discussion regarding the utility rate study and will be provided with further analysis of a more aggressive borrowing approach. Councilmember Ross requested that the Council be given further information regarding what other cities are doing in terms of paying for capital needs. 4. Proposed Agenda— 2010 City Council Workshop Mr. Harmening presented the staff report and proposed agenda for the workshop. Councilmember Mavity requested that the Council have information available at the workshop regarding trends as well as information regarding neighboring suburbs. Councilmember Sanger stated she does not want to review specific projects at the workshop, and would like to review demographic information and trends from the perspective of community development. Mayor Jacobs requested that staff provide background information on the results of the vision work conducted earlier. Ms. Gothberg summarized the Saturday session by stating that staff will review with Council the vision work previously conducted in order to make sure the City is heading in the right direction. She agreed that the Council will look at big picture items and not specific projects. She stated that Study Session Minutes -6- January 11, 2010 staff will provide trends in the community and in the state, including some hard data. She indicated that staff will make sure Council has an opportunity for interaction with department heads and added she will provide a revised draft agenda to the Council for its review. 5. 2009 Telecommunications Advisory Commission Annual Report and 2010 Work Plan Mr. Harmening presented the staff report. Councilmember Sanger stated she felt the Council should meet with the TAC regarding the agreement with LocaLoop. She also requested that the Council discuss the proposed federal stimulus relative to federal broadband. Mr. Harmening agreed to schedule a meeting with the TAC at its next study session. 6. Communications (Verbal) Mr. Harmening stated he will be offering a primer on the City's tax increment financing system and all councilmembers are welcome to attend. He is also considering offering a primer on bonding and how cities borrow money. It was the consensus of the City Council to schedule these educational sessions at a study session in late February or early March. Councilmember Finkelstein requested that staff also discuss how this affects other taxing jurisdictions, e.g., the schools and the county. Mr. Harmening stated he has been reviewing possible options regarding the Finance Director position and explained to the Council the approach that he would like to pursue regarding the position with an overall goal of achieving a better performing accounting division. The meeting adjourned at 10:08 p.m. Written Reports provided and documented for recording purposes only: 7. Fire Stations Project Update 8. Southwest Transitway Resolution if Nancy Stroth, ty Clerk Je Jacobs, Mayor