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HomeMy WebLinkAbout2014/10/13 - ADMIN - Minutes - City Council - Study Session IfSt. Louis Park OFFICIAL MINUTES MINNESOTA CITY COUNCIL STUDY SESSION ST. LOUIS PARK,MINNESOTA OCTOBER 13,2014 The meeting convened at 6:30 p.m. Councilmembers present: Mayor Jeff Jacobs, Tim Brausen, Gregg Lindberg, Anne Mavity, Susan Sanger, and Jake Spano. Councilmembers absent: Steve Hallfin. Staff present: City Manager (Mr. Harmening), Deputy City Manager/Director of Human Resources (Ms. Deno), Director of Engineenng (Ms. Heiser), Chief Information Officer (Mr. Pires), Controller (Mr. Swanson), Finance Supervisor (Mr. Heintz), Parks Superintendent (Mr. Beane), Operations Superintendent (Mr. Hanson), Utilities Superintendent (Mr. Hall), Communications & Marketing Coordinator (Mr. Zwilling), Accountant (Mr. Hemann), Human Resources Coordinator (Ms. Timpone), Human Resources Office Assistant (Ms. Vail), and Recording Secretary(Ms. Hughes). 1. Future Study Session Agenda Planning—October 27, 2014 Mr. Harmening presented the proposed study session agenda for October 27`x'. Councilmember Spano requested that a future study session agenda include a discussion about the City's family leave policies and whether the policies should be enhanced to make the City more competitive and attractive for future employees. 2. Review of Proposed 2015 Budget, Utility Rates, CIP and LRFMP Mr. Swanson presented the staff report and advised that no changes have been made to the proposed 2015 budget since September 15, 2014, when Council adopted the 2015 Preliminary Property Tax Levy increase of 5.5% and the 2015 Preliminary HRA Levy increase of 0.41%. He stated that increases in the Utility Funds have been consistent over the last several years and the City will be issuing debt for both the Water and Storm Water Funds to cover increasing infrastructure needs and address storm water management. He stated the proposed 2015 budget includes a franchise fee increase of $0.75 per utility per month for a total increase of$18 per year for residential customers. He reviewed the estimated City impact for 2015 for taxes, utilities, and franchise fees based on a 5.5% levy increase and stated that a typical residential homestead property valued at $217,600 would experience an overall increase of approximately 6%over 2014 or approximately$115 for the entire year or$9.58 per month. Councilmember Sanger asked if the 2015 budget includes the cost of projects in the 2015 Connect the Park! project. Mr. Swanson replied that the 2015 General Fund Budget does not specifically address this project but the City has factored in Phase 1 of Connect the Park! through the issuance of $5 million in bonds. Councilmember Sanger asked if staff was comfortable with the projections in the Cable TV Fund. , , Study Session Minutes -2- October 13, 2014 Mr. Swanson advised that the franchise agreement ends in 2020 and the Cable TV Fund is projected to remain solvent until 2022. He stated that Comcast may be looking to extend their franchise agreements but if no progress is made on a new franchise agreement, staff would begin looking at this Fund in 2017 to determine how Cable TV is handled in the future. Councilmember Spano reemphasized his concern about the need to start saving money for SWLRT infrastructure needs. He also requested that Council have a future study session discussion about the Cable TV fund and the ways in which people are getting their home entertainment as more and more people remove themselves from traditional cable services. Ms. Heiser presented a map of the 2015 CIP projects and advised that the Bass Lake Preserve project is split among three years and the City hopes to do some vegetation management project later this year, with dredging and sediment removal in 2015, and restoration in the summer of 2016. She stated that the Highway 100 project will intensify starting in April 2015 with significant utility construction including a new water main. She advised that the City has decided to complete the project on 36th and Wooddale in 2016 and will also be installing the signal on 36th and Xenwood at the same time to achieve economies of scale and avoid creating additional delays in this area, adding that these improvements will be in place by the time the Highway 7 bridge is being reconstructed in 2016 as a part of the TH100 project. Councilmember Mavity stated it was her understanding the City would be adding signal lights to the exit and entrance ramps on Highway 7 as part of the 36th and Wooddale project. Ms. Heiser explained these are Mn/DOT controlled ramps and Mn/DOT will be performing traffic counts when the Highway 7 and Louisiana Avenue project is completed and the City should have that analysis in December. Councilmember Mavity felt that these signals lights should be a top priority for the City. Mr. Beane discussed the proposed Wolfe Park improvements and advised that Park Nicollet has indicated a willingness to pay for some of the improvements on the southwest corner of the walk bridge. He stated that the playground equipment at Peter Hobart School and Nelson Park is due for replacement in 2015 and staff will work with the School District on replacement and engage in a public process on selecting equipment. Mr. Harmening requested comment about the condition of the City's water mains and whether the City could experience a major water main break similar to the break that occurred in Robbinsdale. Mr. Hall explained that the City is currently locating all the valving to shut off the water in the event of a break. He stated that the Highway 100 project includes replacing the water lines and will include valves on each side that can be shut down in the event of a break. He stated that the water mains in the City's residential areas are older when compared to the water mains along the highways. Mr. Pires reviewed the 2015 projects in the Cable TV Fund including the work proposed to be done in the Community Room that would allow City Council meetings to be cablecast live. He stated the 2015 CIP includes the fiber conduit project at the West End that will complete the loop around the entire development. He advised that the City had a significant fiber relocation project this year at 28th Street and will have another relocation project in 2015 around Highway 7. He Study Session Minutes -3- October 13, 2014 explained that the CIP also includes a program to convert the City's microfilm documents into digital format and well as expanding the document management system to include things like email. He stated that other projects include portable webcams that could provide views of construction projects such as Highway 100 or SWLRT. Councilmember Sanger requested that staff provide Council with an overview of the fiber connections throughout the City. She also felt the City needed to adopt a privacy policy as it relates to use of webcams and requested this item be placed on a future study session agenda. Mr. Pires explained that cameras that have been installed so far are used for security purposes only and the vast majority of the cameras are not actively monitored. He stated that the City has planned fiber conduit along the entire SWLRT corridor and making sure the City can bring fiber extensions to the light rail stations. He noted that the security facilities along with wi-fi and fiber were installed this year at Nelson, Browndale, and Fern Hill Parks and similar projects are planned in 2015 for Birchwood, Wolfe, and Louisiana Oaks Parks. Mr. Heintz presented the Long Range Financial Management Plan (LRFMP) and introduced Coty Hemann, the staff accountant who worked on the LRFMP. He reviewed the Cable TV Fund and stated this Fund has a positive fund balance through 2022. He stated the Police and Fire Pension Fund includes one-time money for police and fire purposes and this Fund is sustainable through 2023 with a large capital expense projected in 2024. He stated the Housing Rehabilitation Fund is funded through private activity revenue bonds and this Fund has some significant challenges after 2021 and will most likely need some infusion of dollars. He reviewed the Development Fund, which shows a projected $2.1 million in 2015 from proceeds from the sale of land. He also reviewed the HRA Levy Fund that is paying for the Highway 7 and Louisiana Avenue project and stated this Fund will use a $4.5 million loan from the Development Fund to cover the rest of the Highway 7 and Louisiana Avenue project that will be paid off in 2021. He also discussed the Park Improvement Fund and noted that $900,000 has been earmarked in 2015 for the next stage of community center planning. He stated that this Fund also has projected capital outlay in 2016 of over $5 million related to replacement of the refrigeration at the ice arena. He reviewed the Pavement Management Fund and stated this Fund is sustainable based on current capital needs in the program. He discussed the Sidewalks and Trails Fund that includes $654,000 for future debt service needs, $5 million in bond proceeds for 2014, and $100,000 for fiber. He indicated this Fund has $8 million in bonds for 2017 and 2019 for Connect the Park! and $5 million in 2021 to pay for the remainder of the program. He discussed the Capital Replacement Fund and stated this Fund has challenges in the middle years and staff will continue to closely monitor this Fund. He reviewed the Water Utility Fund and stated the revenue amounts have been revised based on a decrease in usage, primarily related to the Nestlé site and a decrease in residential usage. He also reviewed the Sewer Utility Fund, Solid Waste Utility Fund, and Storm Water Utility Fund as well as the Uninsured Loss Fund and Benefits Administration Fund. Councilmember Spano requested further information about the City's ability to use the Development Fund to finance projects. Mr. Swanson distributed a list of active and potential unfunded CIP projects and potential funding sources and stated that all of the SWLRT improvements identified by the City are listed on this document along with the potential cost to the City. Study Session Minutes -4- October 13, 2014 Mr. Swanson advised that the City's debt limit is $150 million and the City only has approximately$11 million of G.O. debt outstanding. It was the consensus of the City Council to set the 2015 Final Property Tax Levy at $26,985,377, an increase of$1,407,469 or approximately 5.5% over the 2014 Final Property Tax Levy. It was also the consensus of the City Council to levy the maximum HRA Levy allowed of$953,238, an increase of $3,879 or approximately 0.41% over the 2014 Final HRA Levy. It was also the consensus of the City Council to proceed with the 2015 proposed utility rate adjustments. 3. 2015 Employer Benefits Contribution and Wellness Incentive Program Ms. Deno presented the staff report and introduced Ms. Timpone and Ms. Vail. She discussed the process used to educate employees and to obtain information on what is important on the benefit program from the employee perspective. Ms. Deno noted that benefits are a major topic for employees and the unions, and they wanted to provide input for 2015. She discussed the process used and the meetings that were held. The task force that was created consisted of representation from all employee groups and unions and was a representative sample of staff in direct proportion to their health insurance enrollment status. She stated that the majonty of the group favored providing more funding for families and moving away from the one amount for all, as long as those choosing "employee only" coverage did not get a reduction in benefits contribution. The second recommendation was to use or encourage the high deductible programs. She presented the recommendations for the 2015 employer contribution that moves to a 65% employer contribution on the high deductible premium for anyone who takes employee+ spouse, employee + child(ren) or family coverage as well as 65% funding on the VEBA and freezing some of the premiums. She advised that the City is prepping this design philosophy for when the City goes out to bid to see if the City can bring in a higher deductible plan with five copays. Councilmember Sanger expressed her opposition to the recommendations and felt it violated the concept of equal pay for equal work, adding she did not agree with paying someone extra because of their coverage choices. She stated she did not see any legal or policy reason to provide an extra amount per month to certain employees and not to other employees based on their non-work related choices. Councilmember Lindberg felt that the proposed plan made sense from a competitive perspective and felt the proposed plan was reasonable from a cost perspective, adding that from a policy perspective,he wanted to make sure the City continues to attract, retain, and motivate staff. Mayor Jacobs and Councilmember Mavity agreed. Ms. Deno stated that wages are not the primary issue with employees and the recommendations from the task force were to put more money to those who have employee+ coverage and encourage the high deductible plan, adding that the unions support the recommendations as well. Councilmember Mavity stated that staff took the time to consider this issue and the group was very thoughtful in their thinking and in coming up with their recommendations and she did not want to micromanage that process, adding she felt this was the right direction for the City. Staff will bring benefits and wellness to the next regular City Council meeting. Study Session Minutes -5- October 13, 2014 Ms. Deno presented the information on the Wellness Incentive Program for 2015 and recommended the same incentive level as 2014, with some program changes. Councilmember Sanger asked if the City has any plan to include wellness benefits for chemical abuse and mental health. Ms. Deno replied these would not be included in the wellness incentive but are included in the overall health plan design, adding that the high deductible plan includes benefits for mental health with no deductible or copay. Mayor Jacobs thanked Ms. Deno, Ms. Timpone, Ms. Vail, and the employee task force for all their work on this matter. Communications/Meeting Check-In (Verbal) Mr. Harmening advised that the City will be conducting liquor compliance checks in the near future and letters have been sent to all liquor license holders informing them about the upcoming compliance checks. He stated that the neighborhood meeting regarding the 40th and France property is scheduled for tomorrow at 7:00 p.m. at Susan Lindgren School. Commenting on Agenda Item 7 written report Park the Street! Recap, Councilmember Brausen stated that it was a great event and congratulated all of the staff involved, especially Admin Intern Bill Chang. He noted that the distance of the event was perfect, and commended staff on the use of the event to promote HIP and CERTs. He proposed holding the events in spring, and to include community outreach to churches and other faith communities. He suggested these pop-up events be planned on many other streets and neighborhoods, especially in Wards 3 and 4, including near Texas and Minnetonka Blvd.; 36th Street behind Knollwood; West End; and on Cedar Lake Road/Louisiana. He suggested more vendors be recruited, especially those pertaining to physical activities. The meeting adjourned at 9:02 p.m. Written reports provided and documented for recording purposes only: 4. East Triangle Neighborhood Redevelopment 5. Series 2014 G.O. Bonds for Sidewalks and Trails Program and Utility Projects 6. Update on Bass Lake Preserve Restoration Project 7. Park the Street! Recap —Y1a---rt t2,-.>4 YU%G, Nancy Stroth�ty Clerk Jef obs, ayor