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
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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
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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
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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
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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
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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.
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239
240
AllbA
242 u ' e Bartell, ity Clerk Jeff,''ei e , Mayor
243
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