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HomeMy WebLinkAbout04-02-2012 Council Work Session Minutes CITY COUNCIL WORK SESSION April 2, 2012 APPROVED 1 CITY OF LINO LAKES 2 MINUTES 3 4 DATE : April 2,2012 5 TIME STARTED : 5:30 p.m. 6 TIME ENDED : 8:50 p.m. 7 MEMBERS PRESENT : Council Member Stoesz(arrived at 5:55 pm), 8 O'Donnell, Rafferty,Roeser and Mayor Reinert 9 MEMBERS ABSENT : None 10 11 Staff members present: City Administrator Jeff Karlson; City Engineer Jason Wedel; 12 Director of Public Safety John Swenson; City Attorney Joe Langel; Director of Finance 13 Al Rolek; Director of Public Services Rick DeGardner; Economic Development 14 Coordinator Mary Divine; City Clerk Julie Bartell 15 16 1. Commissioner Scott Bundy—Update on Centennial Utilities Franchise 17 Agreement— Scott Bundy,the Lino Lakes representative to the Centennial Utilities 18 Commission, addressed the council. He confirmed that the city's franchise agreement 19 with Centennial Utilities has expired and the commission has proposed a new agreement 20 with some different terms. He is a full voting member of the commission so he has been 21 privy to the commission's discussion on the agreement. He is interested in receiving 22 guidance from the council on the matter of a renewal agreement. 23 24 City Attorney Langel reviewed the situation with the council. The franchise agreement 25 that originated in 1987 has expired and Centennial Utilities has proposed terms for a new 26 agreement, including a change in the franchise fees. He has discussed both the fees and 27 the status of the agreement with the Utility's attorney and they disagree on whether or not 28 the utility has an obligation to continue collecting the fees. His understanding is that the 29 franchise is essentially a contract and when the contract expires,the terms continue and 30 the services continue until the two parties reach a new agreement. He noted that, for 31 instance,the franchise agreement proposed by CenterPoint Energy includes language that 32 carries the fee forward. The franchise fees collected by Centennial should be continued 33 as the contract is worked out. Mr. Bundy suggested that there has been discussion that 34 the utility will stop collecting the fee. Mr. Langel said that would be unfortunate and 35 could lead to litigation. 36 37 Mr. Langel noted that the practice of charging the franchise fee is a policy decision for the 38 council. It seems that the Utility is requesting that the city call for the same franchise fee 39 for all the gas utilities operating in the city or they will not collect any fee. 40 41 The mayor remarked that it is unfortunate that the city is just receiving a letter of 42 demands rather than having a discussion as long term partners in this business should. 43 He wants to have that professional level discussion but isn't sure when that can happen. 44 A council member remarked that the city needs to find out if the fee is being collected 45 first and then explore further the difference between Centennial as a non-profit and the 1 CITY COUNCIL WORK SESSION April 2,2012 APPROVED 46 other utilities as profit making companies. A meeting between parties seems appropriate. 47 Mr. Bundy recalled a vote at the utility board to select two representatives to come to the 48 Lino Lakes City Council meeting to discuss the agreement; he is surprised that never 49 occurred. 50 51 The council discussed how a franchise works; it gives the exclusive right for a utility to 52 provide services within the area it covers. For Lino Lakes,there are three gas utilities 53 and three agreements. There is an option to have another utility take over the area 54 currently covered by Centennial Utility. A council member asked about the city's 55 recourse if the fees are not collected;they are budgeted funds. The city attorney 56 responded that court action requiring collection of the funds is a possibility and that can 57 be carried out at any time. The mayor suggested a parallel path where the city looks at a 58 franchise change while trying to work this out. The mayor and Council Member 59 O'Donnell will negotiate on the city's behalf and the city administrator will make the 60 necessary contacts to set up communications. 61 62 2. CenterPoint Energy Franchise Ordinance—CenterPoint Energy Area Manager 63 Roger Brandel was present. He reported that CenterPoint also has a franchise agreement 64 to provide gas serviced to a certain area of Lino Lakes. That agreement is also expiring 65 and they are interested in renewing the franchise. They use the League of Minnesota 66 Cities model for their agreements. Typically they are looking for a twenty year term. 67 68 The mayor noted concern about the standard language in the proposed agreement 69 specifically related to franchise charges being the same across the board. He believes the 70 city wants to work out the agreement with appropriate changes. 71 72 City Attorney Langel also noted the franchise fee language and that it would have to be 73 changed. There is also some broad language that concerns him as far as enforceability. 74 Also on the restoration of ground,the six months noted doesn't seem realistic. So there 75 are a few tweaks to be made but overall the contract is good except for the franchise fee. 76 77 Mr. Brandel further explained that, of course, CenterPoint's preference is for no franchise 78 fee but, if it does come into play, it can be done either on flat fee per meter basis or 79 percentage of revenue. When a discussion of prices occurred, Mr. Brandel reminded the 80 council that their rates are set by the Public Utilities Commission. 81 82 The mayor suggested that the council will have a full discussion about the agreement and 83 since it's not time sensitive, he is leaving the matter open and will invite Mr. Brandel 84 back for more review if necessary. 85 86 3. Anoka County Assessor—Board of Appeal Process—Anoka County Assessor 87 Linda Weiner provided some written information for review. She confirmed that one 88 council member(Mr. Roeser)has received the required training; Council Member 89 O'Donnell volunteered to attend training this year. Ms. Weiner reviewed sales L 90 information for different types of property and the period covered. She reviewed the 2 CITY COUNCIL WORK SESSION April 2, 2012 APPROVED 91 commercial assessor's written report. The market value estimate is down at least six 92 percent at this point. Regarding the Board meeting, she has received few calls so she 93 doesn't anticipate many visitors to the hearing other than perhaps the Bald Eagle Lake 94 property owners. 95 96 10. Bald Eagle Lake Property Values—There are several properties located off of Bald 97 Eagle Lake that are split between two counties—Anoka and Washington. The property 98 owners have concern about their tax valuations because they are taxed as shoreline. They 99 have appealed to both cities (Lino Lakes and Hugo) in the past. Anoka County Assessor 100 Linda Weiner noted that Anoka County adjusted the site value for these properties for the 101 past years. The mayor noted that the onus is on Hugo/Washington County to deal with 102 the shoreline property valuation fairly so it will be important that the property owners be 103 represented there. Ms. Weiner said she spoke with the assessor in Washington County 104 but it did not result in any change. Council Member Roeser is in contact with the 105 property owners and knows they intend to attend both Board of Appeal hearings. 106 107 4. Vadnais Lakes Area Water Management Organization (VLAWMO)Joint 108 Powers Agreement—Stephanie McNamara,VLAWMO Administrator,provided the 109 council with some written information, including a map showing the area of Lino Lakes 110 that is served by VLAWMO. Most of the city is served by the Rice Creek Watershed 111 District. She explained that VLAWMO is a joint powers organization that is overseen by 112 a board made up of representatives of the cities it serves. There is also a technical group 113 that operates at a staff level and Lino Lakes Environmental Coordinator Marty Asleson 114 serves on that group. Ms. McNamara explained that VLAWMO is asking its member 115 cities to extend their existing joint powers agreements to 2016. She explained how the 116 organization is funded(storm water utility)and how they utilize the funds. A council 117 member asked why a four year extension is requested and Ms. McNamara explained that 118 such a period of time allows them to reassess as well as coordinate with their 119 comprehensive plan. She added that their rates are driven by their budget, the budget is 120 set by their board and the board is made up of city representatives. That budget has been 121 kept quite flat with the last increase under one percent. 122 123 5. Blue Heron Days 2012—Venue—Economic Development Coordinator Divine 124 introduced Anna Wick, administrator of the Quad Area Chamber. They are present to 125 discuss the Chamber's idea about changing some locations associated with this year's 126 Blue Heron Days (BHD) events. 127 128 Ms. Wick first noted that the Chamber was established in 1999. In 2008 they held their 129 first business expo in conjunction with BHD and it has grown each year since then. The 130 Chamber is supportive of the festival and wants to be this year's official sponsor. They 131 are interested in making the business expo even more successful by joining it to other 132 BHD events and they see that opportunity in moving many of the events, including the 133 expo, to Lino Park. Ms. Divine explained that she has spoken to the Public Services 134 Director and the Police Department about use of the park which is very large and located 135 right on the parade route. Having events at the park would allow people to come directly 3 CITY COUNCIL WORK SESSION April 2, 2012 APPROVED 136 from the parade to the park without driving. The park has 77 parking spaces,the nearby 137 North Springs Church has offered their 83 spaces and adjacent city street parking would 138 also be available with up front planning. Ms. Wick added that the Chamber Board is 139 concerned that the business expo located at city hall has possibly reached capacity. 140 141 Police Chief Swenson told the council that his concern is parking in the neighborhood as 142 well as pedestrian traffic on a very busy roadway(Lake Drive). He has discussed the 143 need for licensed officers providing traffic control at the cost of the festival sponsors. He 144 is not concerned about having the activities in the park. Ms. Divine noted that there 145 would be an impact on the very small festival budget if police overtime costs became 146 necessary; that could impact the ability to use Lino Park. The Police Chief suggested 147 that a discussion should occur at some time about moving the parade from the county 148 roadway. In the meantime,he is concerned about people, including children, crossing a 149 50 mph roadway. Regarding the cost the same type of traffic services are provided to 150 others in the community at a cost and so there is a precedent. Ms. Divine noted that the 151 council has chosen to waive certain costs to the city for BHD events especially in 152 association with the parade; perhaps that consideration could be extended. 153 154 The mayor remarked that he understands the need for the event to grow. The council 155 should receive an update on event plans as they move forward. 156 157 The meeting was recessed for a short break at 7:10 p.m. 158 159 6. Water Conservation Education—Council Member Stoesz distributed a presentation 160 relative to water conservation. He noted that the subject is an area of interest to him, 161 especially since he grew upon a farm. He would like to see the council promote 162 education on the subject; the city is the owner of the water system so education about its 163 use is a responsibility. As his information denotes,the city's current odd/even watering 164 restrictions are not necessarily an effective tool. The mayor recalled discussion and 165 eventual change to tiered water use rates as a means to encourage conservation. He 166 doesn't believe that has turned out to make a difference. 167 168 Public Services Director Rick DeGardner explained that the city went to an odd/even day 169 sprinkling program as part of an agreement with the Minnesota Department of Natural 170 Resources. It is important that the city maintain a conservation program to remain in the 171 good graces of the state. He suggests that the most effective means of getting people to 172 conserve water is through a rate structure. The odd/even discussion can be complex and 173 he is certainly open to discussion on it. It's important to remember that what the city is 174 really trying to control is peak demand. City Engineer Wedel concurred that the city is 175 under obligation to plan for its water use. 176 177 The mayor suggested that he supports a creative approach and he is impressed with 178 Council Member Stoesz's ideas. He wants the council to consider all approaches and 179 discussion of Mr. Stoesz work will continue. A council member added that education is 4 CITY COUNCIL WORK SESSION April 2, 2012 APPROVED 180 always key in the area of water conservation and he knows that cities can't make rash 181 changes all at once. 182 183 7. Landscaping in Front of City Hall and Island—This item was put on the agenda by 184 Council Member Rafferty with support from another council member. Mr. Rafferty 185 attended the Environmental Board meeting the week previous to see how they were with 186 the landscaping plans and he did feel like there may be some disconnect. The mayor 187 noted that the council has had discussions about the landscaping and it seems there may 188 be some misconception about plans; he knows that the council doesn't want anyone to be 189 offended. Public Services Director DeGardner offered to give the council an update. 190 Currently the council has authorized staff to proceed with relandscaping the area adjacent 191 to the council chambers. An area garden club has offered to help with landscaping and 192 Mr. DeGardner will be talking with them soon about how they can help. The plans for 193 that area were reviewed by the Environmental Board. Regarding the island, it was a 194 separate topic of discussion about which the council reviewed two concept plans in the 195 past. Staff took direction to look at the more maintained type landscape plan for the 196 island. He mentioned then that he would return in the future with more detail on a plan. 197 The mayor clarified that the island and the area adjacent to the council chambers are two 198 separate discussions and the island plans have not been finalized. A council member 199 shared photos from a trip to Anchorage, Alaska visualizing what he finds to be a good 200 approach that he believes people would enjoy seeing. A council member noted that he 201 spoke directly with the garden club organizer and has heard that it is a multi-city group; 202 they are interested in donating items as well as services. It is a talented and ambitious 203 group and he hopes their services will be utilized under the guidance of a plan. 204 205 8. ACE Program Update—Police Chief Swenson gave a PowerPoint Presentation(on 206 file) outlining the city's Achieving Compliance Through Education(ACE) Program, an 207 educational alternative to the standard traffic violation citation that was implemented in 208 Lino Lakes in 2010. The presentation included survey results from participants indicating 209 that the program has had a positive impact. The council discussed the program and other 210 elements that could be considered such as a fully on-line version and the opportunity to 211 repeat. The mayor indicated that he is very supportive of the program and is also open 212 to discussing possible improvements. The Police Chief will continue to update the 213 council on the program. 214 215 9. Senior Center Hand Railing—The mayor noted that he received a request for 216 installation of a railing at the facility. The council directed staff to ensure that the railing 217 was installed. 218 219 11. Month Progress Report—Administrator Karlson updated the council on the 220 paperless packet project. Metro I-Net staff has researched the matter and are basically 221 recommending that cities proceed with what works best for them. Staff will be coming 222 back to the council with a program that allows council members to get the tablet or I Pad 223 type device that they want. Mr. Karlson also mentioned that an android alternative is `„, 224 being explored for some staff that would provide much better access. A council member 5 r , CITY COUNCIL WORK SESSION April 2,2012 APPROVED Li225 requested that cost benefit analysis information be provided to the council and that the 226 council receive more information on possible applications. Mr. Karlson indicated that a 227 time frame is difficult to pinpoint because there is research yet to be done. 228 229 REVIEW REGULAR AGENDA ITEMS 230 231 The regular council agenda for the Council Meeting of April 9, 2012 was reviewed with 232 no comments. 233 234 The meeting was adjourned at 8:50 p.m. 235 236 These minutes were considered, corrected and approved at the regular Council meeting held on 237 April 23, 2012. 238 239 240 AllbA 242 u ' e Bartell, ity Clerk Jeff,''ei e , Mayor 243 6