HomeMy WebLinkAbout2012/10/01 - ADMIN - Minutes - City Council - Regular J1/ Ste Louis Park OFFICIAL MINUTES
MINNESOTA CITY COUNCIL MEETING
ST. LOUIS PARK,MINNESOTA
OCTOBER 1, 2012
1. Call to Order
Mayor Jacobs called the meeting to order at 7:30 p.m.
Councilmembers present: Mayor Jeff Jacobs, Steve Hallfin, Anne Mavity, Julia Ross, Susan
Sanger, Sue Santa, and Jake Spano.
Councilmembers absent: None.
Staff present: City Manager (Mr. Harmemng), City Attorney (Mr. Scott), Finance Supervisor
(Mr. Heintz), Director of Public Works (Mr. Rardin), Community Liaison (Ms. Olson), and
Recording Secretary(Ms. Hughes).
la. Pledge of Allegiance
lb. Roll Call
2. Presentations
2a. WELCOME — SLP Parktacular Ambassador Meet & Greet w/ Council &
Mayor
Mayor Jacobs welcomed the Parktacular ambassadors and thanked them for participating
in all of the Parktacular events.
3. Approval of Minutes
3a. Study Session Minutes September 10, 2012
Councilmember Spano requested that Council's discussion regarding issues associated
with coyotes on page 2 be amended to reflect that he was in favor of reducing the coyote
population but advocated in favor of providing notification, citing neighborhood
concerns.
Councilmember Mavity requested that Council's discussion regarding issues associated
with coyotes be amended to reflect she was in agreement with Councilmember Spano.
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. 12-135 appointing additional election judges needed to
staff the polls at the General Election to be held November 6, 2012.
City Council Meeting -2- October'1, 2012
4b. Approve a Temporary On-Sale Intoxicating Liquor License for the Job's
Daughters Foundation of Minnesota, 11501 Masonic Home Drive, Bloomington,
for an event to be held on October 20, 2012, at Paul Revere Masonic Center, 6509
Walker St., St. Louis Park.
4c. Adopt Resolution No. 12-136 authorizing final payment in the amount of
$10,911.65 and accepting work for Fire Stations No. 1 and No. 2 Work Scope 6
(Structural Steel & Metal Fabrication) with A.M.E. Construction Corporation
Project Nos. 2008-3001 and 2008-3002, City Contract No. 42-11.
4d. Adopt Resolution No. 12-137 authorizing final payment in the amount of
$3,365.00 and accepting work for Fire Station No. 1 Work Scope 17 (Floor
Coatings) by Henkemeyer Painting & Floor Coatings, Inc., Project No. 2008-
3001, City Contract No. 58-11.
4e. Adopt Resolution No. 12-138 authorizing an agreement between the City of St
Louis Park and Hennepin County for City participation in Active Living
Hennepin County and for the development of an Active Living Policy.
4f. Grant the City Manager authority to administratively approve work extras (change
orders and minor extra work) for an additional $100,000 limit for City Projects
2008-3001 and 2008-3002 (Fire Stations Replacement), in accordance with the
City Council's existing policy.
4g. Approve Amendment No. 5 to Contract 142-08 which will provide additional
engineering consulting services needed to complete Phase 4 activities (Final
Design) for the Highway 7 / Louisiana Avenue Interchange project, Project No.
2012-0100.
4h. Adopt Resolution No. 12-139 authorizing filing of application and execution of
agreement to improve various amenities and lighting in Louisiana Oaks Park
under the provisions of the Hennepin County Youth Sports Grant Program.
4i. Approve for filing Planning Commission Minutes August 15, 2012.
Councilmember Spano requested that Consent Calendar item #4g be removed and placed
on the Regular Agenda.
It was moved by Councilmember Mavity, seconded by Councilmember Santa, to approve
the Agenda and items listed on the Consent Calendar as amended to move Consent
Calendar item #4g to the Regular Agenda as item #8a; and to waive reading of all
resolutions and ordinances.
The motion passed 7-0.
5. Boards and Commissions -None
6. Public Hearings
6a. Public Hearing to Consider 2013 Fees
Mr. Heintz presented the staff report and advised the City's fees are reviewed annually as
a part of the budget process and some fees are required to be set by Ordinance while
other fees are set administratively. He noted that the administrative penalties approved
by Council in August have been added to the Ordinance.
City Council Meeting -3- October 1, 2012
Mayor Jacobs opened the public hearing. No speakers were present. Mayor Jacobs
closed the public heanng.
It was moved by Councilmember Sanger, seconded by Councilmember Santa, to approve
First Reading of Ordinance Adopting Fees for Calendar Year 2013 and to set Second
Reading for October 15, 2012
The motion passed 7-0.
6b. Public Hearing and First Reading of an Ordinance Granting a Natural Gas
Utility Franchise to CenterPoint Energy Resources Corp.
Mr. Rardm presented the staff report and explained that in 2003 the City granted a ten
year utility franchise to CenterPoint Energy(CPE). He stated the City is proposing to use
the same process and schedule as that used for the Xcel Energy franchise and CPE has
agreed to revise the ordinance to make it generally consistent with the Xcel Energy
ordinance as well as to increase the base franchise fee by $.50 per month. He indicated
the ordinance term will be ten years and subjects CPE to the City's administrative
regulations and requirements, the ordinance requires CPE to provide mapping
information and requires prompt facilityrelocations. He suggested that Council have a
study session discussion on October 8`h regarding the CPE and Xcel Energy franchise
ordinances and franchise fees to answer any further questions of Council.
Mayor Jacobs opened the public hearing. No speakers were present. Mayor Jacobs
closed the public hearing.
It was moved by Councilmember Santa, seconded by Councilmember Sanger, to approve
First Reading of Ordinance Granting CenterPoint Energy Resources Corp., d/b/a
CenterPoint Energy Minnesota Gas ("CenterPoint Energy'), its Successors and Assigns,
a Nonexclusive Franchise to Construct, Operate, Repair and Maintain Facilities and
Equipment for the Transportation, Distribution, Manufacture and Sale of Gas Energy for
Public and Private Use and to Use the Public Ways and Grounds of the City of St. Louis
Park, Hennepin County, Minnesota, for such purpose; and, Prescribing Certain Terms
and Conditions Thereof and to set Second Reading for October 15, 2012.
The motion passed 7-0.
6c. Public Hearing and First Reading of Ordinance Imposing a Franchise Fee on
CenterPoint Energy Resources Corp.
Mr. Rardin presented the staff report and explained that the CPE base residential
franchise fee of$1.25 per month was initiated in January 2004 and in 2010 was raised to
$2.00 per month. He stated the franchise fee from CPE and Xcel Energy is used entirely
to pay for the City's pavement"management program implemented in 2005. He indicated
the City is asking for a$.50 per month increase to the base residential rate in 2013.
Mayor Jacobs opened the public hearing. No speakers were present. Mayor Jacobs
closed the public hearing.
City Council Meeting -4- October 1, 2012
Councilmember Ross requested further information regarding the franchise fees for
commercial customers.
Mr. Rardin referred to the franchise fee estimate contained in the staff report, noting that
the City currently receives approximately $393,000 per year from residential customers
pursuant to the CPE franchise fee, which is projected to increase to approximately
$491,000 per year in 2013. He stated that most of the various classes of commercial
customers will see a $.50 per month increase in the CPE franchise fee totaling $124,000
for 2013 with total revenues from the CPE franchise fee from all customer classes
projected to be approximately$615,000 in 2013.
Councilmember Ross stated that while it appears a lot of fees are going up, the Public
Works Department is the envy of a lot of cities when it comes to pavement management
and the pavement management program cannot continue without increasing fees. She
felt the franchise fee was a modest increase when considering the cost to residents if the
City had to assess for street improvements and represents a low cost on the front end to
pay for a lot of work the City does on the back end.
It was moved by Councilmember Ross, seconded by Councilmember Hallfin, to approve
First Reading of Ordinance Implementing a Gas Energy Franchise Fee on CenterPoint
Energy Minnesota Gas ("CenterPoint Energy")for Providing Gas Energy Service within
the City of St Louis Park, Minnesota, and to set Second Reading for October 15, 2012.
The motion passed 7-0.
6d. Public Hearing and First Reading of an Ordinance Granting an Electrical
Energy Utility Franchise to Northern States Power Company (Xcel Energy)
Mr. Rardin presented the staff report and stated the City began discussions with Xcel
Energy earlier this year regarding the electrical services utility franchise, including
discussions regarding performance issues with Xcel Energy and addressing those
concerns. He advised that the City is interested in changing the term of the franchise
from twenty to ten years and Xcel Energy would be subject to the City's administrative
regulations; in addition, Xcel Energy would be required to provide mapping information
and prompt relocation of facilities and would be subject to permit fees like other utilities.
He added that Xcel Energy has been resistant to the permit fee requirement but the City
and Xcel Energy have continued negotiations with good strides made in the last few days.
He then introduced Ms. Michelle Swanson with Xcel Energy.
Mayor Jacobs asked if representatives from CPE and Xcel Energy will be in attendance at
the study session on October 8th
Mr. Rardin agreed to request that representatives from CPE and Xcel Energy attend the
study session meeting on October 8th
Mayor Jacobs opened the public hearing.
Ms. Michelle Swanson, Xcel Energy Community Relations Manager, 5309 West 70`h
Street, Edina, appeared before the City Council and stated a number of issues were
brought up during meetings with the City and Xcel Energy is working to correct the
City Council Meeting -5- October 1, 2012
performance issues raised. She felt progress has been made to move the agreement along
and items in the agreement that Xcel Energy does not agree with include Xcel Energy's
position that the agreement is in the form of an ordinance and Xcel Energy feels the
franchise is a contract which must be agreed to by both parties; in addition, every city
that Xcel Energy has a franchise agreement with has a twenty year term. They are
considering the possibility of a ten year checkpoint. She added Xcel Energy is anxious to
reach agreement with the City.
Mayor Jacobs closed the public hearing.
Councilmember Mavity asked if structunng this as an ordinance versus a franchise
agreement will set a precedent in the City or any other community.
Mr. Scott advised there is a recent Court case in an outstate community where the Court
determined the community had the right to impose a franchise agreement without the
utility company's consent, adding he would not say this was unprecedented but was
unusual and franchise agreements are typically done by consent.
Councilmember Hallfin asked if issues with trees and power lines were part of the
franchise agreement.
Mr. Rardin stated that there is a provision in the agreement that discusses tree trimming,
adding that Xcel Energy is fairly regulated regarding dependability of their service and
tree trimming in particular.
Mayor Jacobs stated an issue for him has been a requirement that Xcel Energy
underground their utility lines, noting that while it is expensive to underground the lines,
over the course of time it is less expensive to underground the lines rather than
continually repair them after wind or ice storms.
It was moved by Councilmember Sanger, seconded by Councilmember Santa, to approve
First Reading of Ordinance Granting to Northern States Power Company, a Minnesota
Corporation, d/b/a Xcel Energy, its Successors and Assigns, Permission to Construct,
Operate, Repair and Maintain in the City of St. Louis Park, Minnesota, an Electric
Distribution System and Transmission Lines, including necessary Poles, Lines, Fixtures
and Appurtenances,for the Furnishing of Electric Energy to the City, its Inhabitants, and
Others, and to use the Public Grounds and Public Ways of the City for such purposes and
to set Second Reading for October 15, 2012.
The motion passed 7-0.
6e. Public Hearing and First Reading of an Ordinance Imposing a Franchise Fee
on Northern States Power Company (d/b/a Xcel Energy)
Mr. Rardin presented the staff report and stated the proposed increase of the Xcel Energy
franchise fee is $.50 per month for residential customers, adding that this franchise fee is
also used for the City's pavement management program.
Mayor Jacobs opened the public hearing. No speakers were present Mayor Jacobs
closed the public heanng.
City Council Meeting -6- October 1, 2012
It was moved by Councilmember Santa, seconded by Councilmember Mavity, to approve
First Reading of Ordinance Implementing an Electric Service Franchise Fee on Northern
States Power Company, a Minnesota Corporation, d/b/a Xcel Energy, its Successors and
Assigns,for Providing Electric Service within the City of St. Louis Park and to set Second
Reading for October 15, 2012.
The motion passed 7-0
7. Requests, Petitions, and Communications from the Public—None
8. Resolutions, Ordinances, Motions and Discussion Items
8a. Approve Amendment No. 5 to Contract 142-08 which will provide additional
engineering consulting services needed to complete Phase 4 activities (Final Design)
for the Highway 7/Louisiana Avenue interchange project, Project No. 2012-0100
Councilmember Spano requested clarification regarding Onginal Contract costs and costs
associated with Amendment Nos. 1, 2, 3, and 4, noting the Onginal Contract was for
Phase 1 and 2 work. He asked if the Original Contract acts as a master contract for
administrative purposes.
Mr. Rardin explained that the Original Contract for this project and for the Highway 7
and Wooddale Avenue project was for Phase 1 work only and stated the City did not
want one large contract on either of these projects because it is better to negotiate costs
and work tasks as the project moves along rather than having one large initial contract
addressing all phases of work which speculates at future work tasks and costs.
Councilmember Spano noted that Amendment No. 3 for Phase 4 work was approximately
$958,000 and Amendment No. 5 includes additional Phase 4 work for approximately
$384,000. He expressed concern that this represents an approximate 40% increase in
Phase 4 work.
Mr. Rardin advised that the scope of work in Amendment No. 3 specifically did not
include nght-of-way acquisition activities, preparation of the Remedial Action Plan, or
public art development activities and that was noted by the City at the time Amendment
No. 3 was approved.
Councilmember Hallfin stated he has had conversations with business owners in the area
of the new interchange and requested that the record reflect that the City has heard what
these business owners are saying about maintaining good access to their businesses
during construction and the City will make sure to do its best to make sure businesses
have full access during construction.
Councilmember Santa stated there are also residents in the construction area and the City
is very aware that moving around the City during this project will be problematic and the
City is looking at ways to make it easier and less painful for residents and businesses.
It was moved by Councilmember Spano, seconded by Councilmember Sanger, to approve
Amendment No. 5 to Contract 142-08 which will provide additional engineering
City Council Meeting -7- October 1, 2012
consulting services needed to complete Phase 4 activities (Final Design)for the Highway
7/Louisiana Avenue interchange project, Project No. 2012-0100.
The motion passed 7-0.
9. Communications
Mayor Jacobs congratulated the School District Foundation on its successful fundraising
event held last Saturday.
Mr. Harmening requested that residents water their boulevard and other trees.
10. Adjournment
The meeting adjourned at 8:05 p.m.
Nancy Stroth, City Clerk Jeff aco as a or