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HomeMy WebLinkAboutCCMin_05Nov23CITY OF FALCON HEIGHTS CITY COUNCIL MINUTES November 23, 2005 Mayor Gehrz convened the regular City Council meeting at 7:00 PM. PRESENT: Mayor Sue Gehrz, Councilmembers Laura Kuettel, Robert Lamb, Peter Lindstrom and Richard Talbot. Also present: City Administrator Heather Worthington, and Deputy Clerk Stacey Kreuser. Mayor Gehrz introduced councilmember-elect Pam Harris to the council. COMMUNITY FORUM: None. PRESENTATIONS: Mayor Gehrz recognized Nicholas Allen, recipient of the Eagle Scout Award in 2005. Congratulations and thanks were given by the council. APPROVAL OF MINUTES: The minutes dated 11/09/05 were approved as corrected by Councilmember Kuettel. PUBLIC HEARINGS: None scheduled. CONSENT AGENDA: Kuettel moved to approve the following items on the consent agenda, and the motion was unanimously approved: General Disbursements through 11/17/05: $ 60, 651.56 Payroll 11/01/05 – 11/15/05 $ 12, Approval of renewal city licenses for 2006 to date. Businesses were read off by the councilmembers. Schedule changes for year-end meetings were made by canceling the Dec. 7th workshop in lieu of the Truth in Taxation hearing on Dec. 5th, and canceling the council meeting on Dec. 28th. The regular council meeting remains scheduled for the 14th. POLICY AGENDA: 1. 2006 Utility Fee Structure Administrator Worthington began the item by giving a brief overview of the two funds in the enterprise category – storm drainage and sanitary sewer. Worthington stated the fee structure compared to other cities is very low, and while costs increase revenue remains static. She explained the recommended fee increase to the storm drainage fee would be $6.00 per quarter, up from $3.47 per quarter for residential and $56.00, up from $32.50 for commercial. Worthington then explained the sanitary sewer fund has not increased fees in at least 10 years. She explained the recommended fee increase to the sanitary sewer fee would be 11.4% for commercial and residential accounts. Mayor Gehrz stated that at the work session the council determined the amount of the raise and the implications if the fees are continued without an adjustment. The outcome with no raise would be of concern. Councilmember Lamb then explained the difference between a tax and a fee. He stated taxes apply to things that generally are used by the population as a whole, while fees apply to those items that are used with discretion. He stated through fees, those entities that use city systems pay for them and gave the example of the U of M, State Fair, and TIES, who do not pay taxes to the City. He stated the general belief that shared services are paid for by the tax system, but with fees the City is able to create revenue from those entities that do not pay taxes. Lamb explained that due to the recent political atmosphere, the description and commentary on fees and taxes was necessary. Mayor Gehrz then asked for any changes. Councilmember Lamb replied he had none, and felt at ease with the increase since Falcon Heights will remain in the lowest third in comparison with other cities. Councilmember Lindstrom stated he agreed with Lamb for the same reasons. He noted that whether it is taxes or fees, the council is reluctant to make increases, and do it only when necessary and on a slight scale. Councilmember Talbot echoed Lamb’s statements and gave thanks for the fee/tax explanation. He noted public is invited to attend workshop meetings, held the first Wednesday of each month at 6:00 p.m. Councilmember Kuettel then pointed out that if the City has deficits in funds that are supported by revenues from fees, and the City does not change the fee to erase any deficits, it makes a difference in the bond rating of the City. She stated she was in favor of the increase. Mayor Gehrz then added she was also in favor and felt the change was necessary. She noted that people have asked her why sanitary sewer is not billed by volume usage. The costs associated with calculating the usage are great, and billing it as a flat fee is much lower. She stated her appreciation of staff for providing the information on the funds. Councilmember Talbot moved to approve the increase to $6.00 per quarter for residential, and $56.00 per quarter for commercial for the storm drainage fee, and an 11.4% increase for residential and commercial for sanitary sewer. The motion passed unanimously. 2. Approval of contract with Housing Resource Center for 2006 Administrator Worthington started the item by giving an overview of the services provided to Falcon Heights residents by HRC. She drew the attention of the council to the spreadsheet of statistics on usage so far in 2005, and noted he contract renewal cost is $5,000. Councilmember Talbot said that with increases in so many other things, the contract with HRC is useful, and he can’t support it enough. Councilmember Kuettel noted that with the housing stock aging in Falcon Heights, it makes perfect sense to offer this service. Councilmember Lindstrom stated he has used HRC, and it was fantastic. Mayor Gehrz explained that before HRC, Falcon Heights was exploring getting an HRA and decided it wouldn’t raise enough money, but with a small investment for HRC Falcon Heights gets a lot of services. Councilmember Talbot then explained that the contract fee is based on population. Larger cities pay more for HRC’s services. Councilmember Lamb then stated that Falcon Heights has the third highest market values in the county, and residents are dependent on their neighbors for the values of surrounding properties. He stated it does good to keep market values high (except during tax time). He also noted that for $5,000 HRC will assist on a non-biased basis, unlike perhaps contractors who have a vested interest in recommendations, opinions and suggestions. Councilmember Kuettel moved to approve the contract with HRC for 2006 for $5,000. The motion passed unanimously. 3. Agreement for removal of a tree and assessment of costs Administrator Worthington began the item by giving background on the diseased elm tree at 1687 Larpenteur. She stated the property owner agreed to have the $2742.38 assessed to her property taxes in lieu of one lump sum payment to the City. Councilmember Lamb stated he had reservations on the item, stating the City was pushing the bounds of commercial lending. He asked whether the proper role of government was to become a lender for work done to private property. He stated he was unsure of how he was going to vote on the item, but wanted to raise the point on principle. Councilmember Talbot stated that since the elm was diseased, allowing it to remain in the yard negatively affects other trees. Councilmember Lindstrom agreed, stating it was required by law to get rid of the tree. Administrator Worthington then stated the City has been working with the owner since June, and she is unable to pay. She noted the City already is in non-compliance in letting it go this far. Councilmember Lamb reiterated again, when is it appropriate for government to act as a commercial lender. He stated he had a problem with lending to an individual. Mayor Gehrz then added that it is due to timeliness and the nature of Dutch elm. She stated her confidence in staff that the best option was secured for getting the tree taken care of. She noted that the action is legal, although rare. Administrator Worthington then added that this instance is the only time the City has used this type of mechanism. She commended the City Forrester and Public Works, and noted that voluntary compliance was tried for. She also added that the assessment will stay with the property until it is paid off. Councilmember Kuettel then asked if the property is sold in five years, can a new owner simply pay the balance off. Administrator Worthington replied they could. Councilmember Lamb continued to be careful of the role of government. The motion was made by Councilmember Lindstrom to approve assessment of the costs associated with removing the elm to the homeowner’s property taxes. The motion unanimously passed. 4. Adoption of Resolution 2005-20 to support establishment of a Technical Advisory Committee (TAC) for the Capitol Region Watershed’s (CRWD) Rulemaking Process Administrator Worthington began the item by giving an overview of the rulemaking process to date. She explained that a TAC is necessary because of state statute in establishing watershed districts and watershed management organizations, and to ensure the rulemaking process takes into consideration the concerns of local units of government. She noted the Watershed Board met on Nov. 16th and took action to extend the comment period for cities to Dec. 15th. Mayor Gehrz asked Administrator Worthington to expand more on rules translating to homeowners through taxes. Administrator Worthington explained that since 2000, each city has been operating through a memorandum of understanding (MOU) rather than rulemaking. Rulemaking would add permits, reviews by the CRWD on redevelopment projects, in addition to zoning. She added a TAC needs to be formed to aid cities in the rulemaking process. Councilmember Kuettel asked whether the Dec. 15th deadline was extended by CRWD. Administrator Worthington answered it was, in time for the 14th council meeting. Councilmember Lamb moved to approve resolution 05-20 to support establishment of a Technical Advisory Committee (TAC) for the Capitol Region Watershed’s (CRWD) Rulemaking Process. The motion was unanimously approved. 5. Final Draft 2006 Budget and goals—For Discussion Purposes Only Mayor Gehrz relayed notification of the TNT hearing on Dec. 5th at 7:00 p.m. At that time, staff will present changes to the ’06 budget and will be available to answer questions. She noted the TNT hearing will also be the last chance for the council to make changes. Administrator Worthington stated the goals are formatted as a “track changes” so amendments are visible. Councilmember Lindstrom asked whether the spreadsheet with percentages of increase will be available. Administrator Worthington answered a full description, including those breakdowns, would be available on the 5th. Councilmember Lamb commended Finance Director Olson for his knowledge and expertise. Administrator Worthington echoed Lamb’s comments. REPORTS FROM COUNCIL MEMBERS: All councilmembers wished residents a Happy Thanksgiving. Mayor Gehrz commended Detective Bruski of the SAPD for his role in nabbing a burglary suspect accused of thefts in the Falcon Heights area. Gehrz pointed out an article on the University Grove neighborhood in Rake magazine. Next she asked that residents keep in mind that Friends of St. Paul and Ramsey County Parks are taking tree orders for $50, which would make a good holiday gift. She thanked all who had a hand in organizing and working at the Grand Opening on the 15th of November, including the restaurants, planning committee, Sherman employees, city commissioners, and residents for making the event a success. Mayor Gehrz adjourned the regular city council meeting at 8:30 p.m. Respectfully submitted, Stacey Kreuser Deputy Clerk