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HomeMy WebLinkAbout02-22-2016 Council Meeting MinutesCOUNCIL MINUTES February 22, 2016 1 CITY OF LINO LAKES 2 MINUTES 3 4 5 DATE February 22, 2016 6 TIME STARTED 6:30 p.m. 7 TIME ENDED 7:55 p.m. 8 MEMBERS PRESENT Council Member Rafferty, Kusterman, Maher, 9 Manthey, and Mayor Reinert 10 MEMBERS ABSENT none 11 12 Staff members present: City Administrator Jeff Karlson; Director of Public Safety John Swenson; 13 and City Clerk Julie Bartell 14 15 PUBLIC COMMENT 16 17 No one was present to address the council regarding a matter not on the agenda. 18 19 SETTING THE AGENDA 20 21 The agenda was approved as presented. 22 23 CONSENT AGENDA 24 25 Council Member Rafferty moved to approve the Consent Agenda, Items I through 1C, as presented. 26 Council Member Maher seconded the motion. Motion carried unanimously. 27 28 ITEM ACTION 29 30 Consideration of Expenditures. 31 32 February 22, 2016 (Check No. 103180 — 33 103643, $568,766404) Approved 34 35 Centennial Fire District (Check No. 7309- 36 7319, $4,822.48) Approved 37 38 February 1, 2016 Council Work Session 39 Minutes Approved 40 41 February 8, 2016 City Council Meeting 42 Minutes Approved 43 44 45 1 COUNCIL MINUTES February 22, 2016 46 FINANCE DEPARTMENT REPORT 47 48 There was no report from the Finance Department, 49 50 ADMINISTRATION DEPARTMENT REPORT 51 52 3A) Consider Resolution No. 16-09, Supporting Principles for Reforming Metropolitan 53 Council — Administrator Karlson noted that he received a communication asking the city to sign on to 54 a resolution put together by a group of officials calling for change in the Metropolitan Council 55 membership structure. 56 57 Mayor Reinert noted that he has participated with the offls group and the idea they came up with 58 is outlined in the resolution and attachments and he thinks it gets to a position of greater 59 representation from the areas affected by the Metropolitan Council. He likened the current structure 60 of the Met Council to a billion dollar football, with membership changing every time there is a change 61 in the governor position. He supports the resolution. 62 63 Council Member Kusterman moved to approve Resolution No. 16-09 as presented. Council Member 64 Rafferty seconded the motion. 65 66 Council Member Kusterman added that the Metropolitan Council is a body that is partisan and is one 67 of very few regional bodies that do not allow for elected official membership and it's been that way 68 for fifty years. He thinks that is long enough and this resolution will let the state's elected officials 69 know that the city doesn't feel the current system is true representation. He hopes the message will 70 get a proper ear at the Legislature and the Governor's office. 71 72 Council Member Rafferty said he agrees, adding that this is a solid idea and he's grateful for the 73 discussion of change that is needed. 74 75 Mayor Reinert read the six points included in the resolution. 76 77 Council Member Manthey noted that he sees this resolution coming forward from many people and 78 he's heard a good discussion; he hopes it will get to the Governor's ear. 79 80 Motion adopted on a voice vote. 81 82 3B) Consider Resolution No. 1640, Concurring in the Issuance of G.O. Bonds, Series 2016A, 83 to be issued by the City of Circle Pines 84 85 3C) Consider Resolution No. 16"11, Regarding Amendment of the Amended Joint Powers 86 Agreement (JPA) for North Metro Telecommunications Commission to Issue Bonds and Use 87 Certain Franchise Fees 88 89 Administrator Karlson explained that Items 313 and 3C are related. They are resolutions that relate to 90 the issuance of bonds to finance the acquisition of high definition (HD) equipment as an upgrade 2 COUNCIL MINUTES February 22, 2016 APPROVED 91 project for the North Metro Telecommunications system. The North Metro staff has analyzed the 92 situation and recommends this replacement of all equipment, including a production vehicle. There 93 exists an option to issue G.O. bonds through a city and that is preferred to North Metro issuing them 94 as revenue bonds because there would be substantial savings. He explained that all the North Metro 95 member cities would pay the debt but it would actually be funded by a franchise fee. He introduced 96 Heidi Arnson, Executive Director of North Metro, and Nick Anhut of Ehlers and Associates 97 (financing consultant to the project). 98 99 Ms. Arnson explained the history of the joint powers agreement and old language included therein 100 and their request to change the language to remove a figure of bonding that was put in when the group 101 originally bonded for their building. When Mayor Reinert asked Ms. Arnson to explain further how 102 the proposed equipment upgrade project will benefit the City, Ms. Arnson reviewed in detail the 103 services provided by North Metro. She noted that seventy-three percent of Comcast customers have 104 HD in their home and for the new franchisee, Century Link, that figure is 100%. In that light, North 105 Metro would like to provide its programming with an HD signal. She feels that people really expect L06 that level of service now and it is an opportune time for the group to make the upgrade. They have 107 taken excellent care of the equipment they have now but it is just time to upgrade and it makes sense 108 to replace everything so the systems all work together. The upgrade will also mean additional access 109 in the form of HD channels. The group currently has no debt on their facility so there is the ability to 110 pay on the improvements. 111 112 Council Member Maher noted that she is the City Council representative on the North Metro board. 113 She's a new member but one thing that she understands clearly is that North Metro does a lot of work 114 in our community. 115 ll6 Mayor Reinert noted that the Centennial School District pulled out of the system. Ms. Amson 117 explained that the school district decided to move fully to their web site although North Metro still 118 broadcasts some material for them. Mayor Reinert asked if the upgrade will include internet or social 119 media play in? Ms. Arnson explained that they already stream two channels and also have video on 120 demand. She also reviewed historic data on franchise fee revenue, the revenue source identified to 121 pay for the bonds. 122 123 Nick Anhut, Ehlers, explained that he is financial consultant to both the North Metro 124 Telecommunications Commission and he does work for the City of Circle Pines. He explained that 125 an obligation of the Commission is an obligation of all its member cities. The most efficient 126 financing mechanism is the goal for any project and it's been determined that the issuance of G.O. 127 bonds through a city is the best way to go with this project. The money to pay for the debt will be 128 remitted to cities. When the Mayor asked why the City of Circle Pines will issue the debt, Mr. Anhut 129 said that the city has offered to do it and they have a AA bond rating. There is no special benefit to 130 the issuing city. 131 132 Council Member Kusterman recognized the savings related to the different types of bonding and 133 noted that this really won't cost the City anything because there is a reimbursement process built in. 134 He asked if the purchases involved will be exempt from sales tax? Mr. Anhut replied that purchases �3 COUNCIL MINUTES February 22, 2016 APPROVED 135 related to this project would be made through the City of Circle Pines so that would provide for an 136 exemption. 137 138 Council Member Rafferty asked about the cost of the project to subscribers in the form of fees and 139 Ms. Amson explained that there are PEG and franchise fees to subscribers; the PEG fees are static at 140 $3.16 while the franchise fee amount is tied a percentage. Council Member Rafferty asked how 141 many people actually use the services; he's heard examples of cities that have broken away from this 142 type of communication (noting the City of Shoreview) and he wonders why. Ms. Amson explained 143 that cable programming services offered by North Metro are actually a very small part of their 144 services (and she reviewed the many services they provide). 145 146 Council Member Reinert noted that the City's government channel is pretty old; he wonders how that 147 will be enhanced. Ms. Amson explained that the change to HD will obviously improve the picture 148 quality and also add certain technologic graphics capabilities. She added that she understands that 149 the City will be upgrading its city hall facilities and the North Metro engineer will be available to 150 assist with that process. Council Member Manthey asked if this funding will help the city in its own 151 upgrade project and Ms. Amson replied that the less they spend on the upgrade project, the more the 152 city will get back so that could concievably be used for the project. 153 154 Council Member Manthey asked if other member cities have signed on and Ms. Amson said that six 155 cities have done so. 156 157 Administrator Karlson added that when he started in his position as city administrator, he saw that the 158 city should start saving for an upgrade project to the council chambers and perhaps the community 159 room. That funding has now grown and is available for a project here at city hall. 160 161 The council discussed delaying consideration of the bond issuance and joint powers amendment and 162 heard from staff that the bond must be approved prior to March 2; the joint powers amendment could 163 be delayed. Mayor Reinert noted that he's never seen a budget for the North Metro organization and 164 is interested in learning more about the budget for this proposed project. 165 166 Council Member Manthey moved to approve Resolution 1640 as presented. Council Member 167 Maher seconded the motion. 168 169 Council Member Rafferty noted that he has some concern about moving forward at this point. 170 171 The motion was adopted on a voice vote; Council Member Rafferty recorded as voting "no". 172 173 Regarding Item 3C, Administrator Karlson explained that the resolution would provide for an 174 amendment to the joint powers agreement (governing North Metro Telecommunications) to reflect a 175 change regarding the issuance of bonds. Ms. Amson explained that the amendment serves to clean 176 up the JPA; some of the language in the agreement relates to the previously bonded project, their 177 building. The new language means that North Metro wouldn't have to ask for a change to the JPA 178 everytime they bond. It also would change how cities can spend fees, giving more latitude. 179 0 COUNCIL MINUTES February 22, 2016 180 Mayor Reinert said he doesn't support the resolution because it appears to give automatic authority 181 without council consideration. Ms. Arnson said that North Metro would still have to get permission 182 to bond from each city but would not have to get an amendment to the JPA each time. 183 184 The council discussed delaying approval of the resolution to allow more discussion at an upcoming 185 work session. Mr. Anhut noted that there is time for more discussion, however, the JPA does 186 ulitimately have to be changed in order to allow for the equipment purchase project. 187 188 Council Member Kusterman moved to postpone consideration of Resolution No. 16-11 to allow for 189 further discussion. Counicl Member Maher seconded the motion. Motion carried on a voice vote. 190 191 PUBLIC SAFETY DEPARTMENT REPORT 192 193 4A) Consider approval to hire Building/Fire Inspector effective March 14, 2016 — Public 194 Safety Director Swenson reviewed his written request to hire Brian Finke to the position. A thorough 195 hiring process has resulted in staff recommending Mr. Finke to this position. He would start at step 196 one of the salary scale. 197 198 Council Member Maher asked how many individuals applied for this position. Director Swenson 199 explained that there were eight individuals interviewed and Mr. Finke was in the top two. He also 200 reviewed Mr. Finke's experience and certifications in the field. 201 202 Council Member Kusterman moved to approve the hiring of Brian Finke effective March 14, 2016. 203 Council Member Manthey seconded the motion. Motion carried on a voice vote. 204 205 PUBLIC SERVICES DEPARTMENT REPORT 206 There was no report from the Public Services Department. 207 208 COMMUNITY DEVELOPMENT DEPARTMENT REPORT 209 There was no report from the Community Development Department, 210 211 UNFINISHED BUSINESS 212 213 There was no Unfinished Business. 214 215 NEW BUSINESS 216 217 There was no New Business. 218 219 COMMUNITY EVENTS 220 221 SIXTH ANNUAL SUPER HERO CARNIVAL — Dress up like your favorite super hero! This event 222 will take place at Blue Heron Elementary on Saturday, February 27 from 1041:30 a.m. For 223 additional information call Lino Lakes Parks & Rec. at 651-982-2440. 5 COUNCIL MINUTES February 22, 2016 224 225 226 227 228 229 230 231 COMMUNITY CALENDAR Wednesday, February 24 Thursday, March 3 Monday, March 7 I. Monday, March 7 APPROVED Community Calendar —A Look Ahead February 22, 2016 through March 7, 2016 6:30 pm, Council Chambers Environmental Board 8:00 am, Community Room 6:00 pm, Community Room 6:30 pm, Council Chambers EDAC Council Work Session Park Board 232 233 ADJOURN 234 235 There being no further business, Council Member Rafferty moved to adjourn at 7:55 p.m. Council 236 Member Manthey seconded the motion. Motion carried unanimously. 237 238 These minutes were considered and approved at the regular Council Meeting, March 14, 2016. 239 240 'r 241 /1 Bartell, City Jeff