HomeMy WebLinkAbout07-06-2010 Council Minutes CITY COUNCIL WORK SESSION July 6,2010
APPROVED
1 CITY OF LINO LAKES
2 MINUTES
3
4 DATE : July 6,2010
5 TIME STARTED : 5:30 p.m.
6 TIME ENDED : 11:10 p.m.
7 MEMBERS PRESENT : Councilmember Gallup, O'Donnell,
8 Rafferty, Roeser and Mayor Reinert
9 MEMBERS ABSENT : None
10
11
12 Staff members present: Acting Administrator Dan Tesch; Community Development
13 Director Michael Grochala; Economic Development Coordinator Mary Alice Divine;
14 City Engineer Jim Studenski; Police Captain Kent Strege; Public Works Employee Tim
15 Payne; Finance Director Al Rolek; City Clerk Julie Bartell
16
17 1. Willow Ponds—Economic Development Coordinator Divine explained that the
18 Willow Ponds project was built with tax increment assistance from the city in 1995 and
19 the development agreements included a covenant instituted by the city that requires the
20 project remain senior housing through the year 2026. The project is now being purchased
21 by Mr. Charles Reisenberg through financing provided by the U.S. Department of
22 Housing and Urban Development(HUD). HUD is requiring subordination of the
23 restrictive covenant. She recalled that the council discussed this matter at the June work
24 session and asked staff to respond to questions and concerns about how the city can
25 maintain certain assurances on this project. Attorney consultant Steve Bubul of Kennedy
26 and Graven has prepared a response that is included in the staff report. It outlines the
27 results of his negotiations with HUD on the matters of mortgage assignment and
28 subordination of the city's restrictive covenant. He reported that HUD has agreed to
29 subordinate the agreement as the city requested. If there were a foreclosure on the
30 mortgage, HUD could terminate the senior covenant but he did get HUD to agree to get
31 the city's (Lino Lakes Economic Development Authority) consent on a change.
32
33 When a council member asked about the significance of the change from"age 55"to "age
34 62" in the agreement, Mr. Reisenberg explained that it has little impact since there are
35 few tenants between the age of 55 and 62.
36
37 The council was informed that much work went into convincing HUD to make the
38 change on allowing the subordination. On the question of management, Mr. Reisenberg
39 confirmed that the function is fully budgeted in his plans and the management company
40 in fact will not change. On the question of ensuring future upkeep of the project,
41 Community Development Director Grochala explained that the condition of the property
42 will be monitored under the city's housing maintenance code. Mr. Reisenberg confirmed
43 that there are no deferred maintenance items planned but there is funding planned for
44 future capital needs.
45
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CITY COUNCIL WORK SESSION July 6,2010
APPROVED
46 The council concurred and acknowledged that the developer has responded to their
47 previous concerns. They are comfortable and directed Ms. Divine to proceed with
48 scheduling an EDA meeting at which approval will be considered.
49
50 2. Storm Water Management Annual Report—Public Works Division employee Tim
51 Payne reported on the city's accomplishments in the 2009 Storm Water Pollution
52 Prevention Plan. He provided a detailed report by use of a Power Point presentation (on
53 file). The presentation included an explanation of the purpose of the National Pollutant
54 Discharge Elimination System(NPDES)to reduce pollution, what the city must commit
55 to and accomplish in order to receive an NPDES permit that allows the discharge of
56 storm water and he provided a review of the city's accomplishments in this area in 2009.
57 There was also a review of 2010 goals.
58
59 The council confirmed that there is good information for the public in this area on the
60 city's Web site. It was noted some cities have utilized their utility bills as a vehicle to get
61 information to their consumers on storm water and to provide advice on such popular
62 items as rain gardens. The council heard that staff will be bringing forward an ordinance
63 soon to put certain illicit activities (in the area of storm water) into the code to help with
64 enforcement.
65
66 3. Storm Water Utility—Community Development Director Grochala reported that
67 staff has responded to the council's direction in March to go forward with an update to
68 the city's Storm Water Utility Feasibility Study. The firm of Short Elliot and
69 Hendrickson (SEH) is in the process of updating the study and has presented the council
70 with a draft for review. He reviewed a schedule that could be implemented if the council
71 wishes to proceed with a utility.
72
73 Jeremy Walgrave of SEH distributed the draft report and indicated that the basic purpose
74 of creating a storm water utility is to institute a dedicated fee to cover storm water
75 management costs.
76
77 The council heard about how the city pays for storm water costs currently from general
78 funds and how a storm water utility would more fairly charge those expenses to users and
79 reach users not currently paying (churches, prison, schools). Staff is in the process of
80 determining where costs are included in the budget and drawing those out to be included
81 in a storm water utility budget. Based on a preliminary review, the proper fee appears to
82 be in the area of$30 per year per resident(average). Commercial properties would be
83 charged on the basis of use. In a basic comparison of what an average homeowner would
84 currently pay(through property taxes), it appears that the amount for a median valued
85 home ($212,000)would decrease from $50 to $30 per year. That shift will occur because
86 industrial properties will pay more and non-profits will begin paying.
87
88 A council member noted that this fee shift has been considered for some time but there
89 has been concern that costs be clearly identified and that the use of the funds be kept only
90 to those costs directly related to storm water functions. There should be no abuse of this
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91 revenue now or in the future. It will be important to show the citizens the direct
92 correlation in moving this from the general fund to a fee and the equity in doing so. It
93 was noted that the great majority of cities in the region have already implemented a storm
94 water utility.
95
96 A council member wanted to know that the impact on business and non-profits won't be a
97 huge stifling suprise; they should be allowed time to get this in their budget.
98 There was a review of the public process that would precede council consideration of an
99 ordinance instituting the utility (in September).
100
101 The council concurred that the process should move forward but requested that the
102 presentation of this proposal to the public be done in as clear a fashion as possible and to
103 ensure that they'd like to see the public presentation beforehand..
104
105 4. John Freimuth—6931 Lake Drive/Blighted Commercial Properties—Community
106 Development Director Grochala explained that Mr. Freimuth, a Lino Lakes resident, is
107 interested in purchasing a property at 6931 Lake Drive where he could expand his
108 recycling business. He has encountered several problems though mainly because 1)the
109 business would be classified as a junk yard and that use is not allowed at all in the city; 2)
110 the proposed use would not be supported by either the 2002 or 2030 comprehensive plans
111 since the area is designated as commercial and is seen as a gateway to the city where
112 outdoor sales would not be appropriate; and 3)the building on the site does not meet the
113 fire code in the area of having an adequate fire suppression system. Mr. Freimuth
114 brought his concern to the Planning and Zoning Board and while the board is supportive
115 of his plans to move his business to the city, they confirmed that the Lake Drive site
116 would not be appropriate.
117
118 Mr. Freimuth told the council that he is ready to expand his recycling business and would
119 like to do so in Lino Lakes. His business is to receive items such as refrigerators,
120 microwaves, etc and prepare them for recycling. He's like to use the site in Lino to be
121 open to the public for drop off of those types of items.
122
123 The council discussed the matter of blighted commercial properties overall and,
124 considering there are several areas with blighted properties,how best to deal with them.
125 Regarding the property on Lake Drive, staff noted that it has been recognized as pretty
126 much unusable as is. While Mr. Freimuth could knock it down and get sewer and water
127 installed, his proposed use still doesn't work at the location. Staff sees that the site
128 requires improvements that would probably only come as part of a development plan in
129 the area. While the council has the ability to make the necessary change to the comp plan
130 (to allow Mr. Freimuth's use) and to change city ordinance to allow the use, doing so
131 would mean that the use is allowed permanently. An interim use isn't feasible especially
132 with an investment required by Mr. Freimuth.
133
134 A council member confirmed that Mr. Freimuth's business would create jobs in the city.
135 The council concurred that while they'd like to see this business at the Lake Drive
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136 location, there seems to be some insurmountable hurdles and there is no way to do this
137 conditionally. It's a classic example of a blighted property with no clear solution to help
138 with improvement.
139
140 Centennial Fire Chief Jerry Streich addressed the council. He noted his concern about the
141 hazardous materials that would be involved in the proposed business and the clear need to
142 have appropriate fire suppression in that situation. He must look at the situation in terms
143 of a worst case scenario and, with schools in the immediate vicinity, he's strongly behind
144 the fire suppression equipment requirement in this case.
145
146 The council pointed out that good information has come out of the discussion. If another
147 site comes into the picture, they recommend that Mr. Freimuth get advice from the Fire
148 Chief. Further the council recommends that staff put together a different classification
149 for this type of recycling business (other than junk yard).
150
151 5. METRO INET Joint Powers Agreement—Finance Director Rolek explained that
152 the city is a member of Metro I-NET, a network of cities sharing services such as
153 computer networking, servers, email and phone systems. The network has grown and it's
154 become apparent that it would be appropriate to establish a joint powers board to manage
155 the network. Creation of the board, however, is really just a formalization of the current
156 users group management. Mr. Rolek recommends that the city proceed with entering into
157 a joint powers agreement to continue the good services currently being provided through
158 Metro I-NET.
159
160 When the council asked if this proposal comes forward to address a problem, Mr. Rolek
161 said not necessarily but the group sees that efficiencies will be greater with this change.
162 There will be no change in how charges are assessed.
163
164 The agreement before the council is considered a draft. It will be reviewed by the city's
165 legal staff and a final proposal will return to the council at a later date. A council member
166 requested that more information be provided on gained efficiencies. Staff was also asked
167 to consider a change in the "drop off'time; that could lay more of a burden on the other
168 members without much notice.
169
170 6. 2011 Budget Guideline Discussion—Finance Director Rolek noted that staff
171 preparations for the 2011 budget are underway and they would like the input of the
172 council regarding initiatives, goals, service level adjustments, property tax levies and
173 other topics pertinent to the upcoming budget process. He has included in his report a
174 tentative budget consideration calendar.
175
176 Council members commented that the budget should be driven by the organizational
177 review but that isn't done because the new city administrator isn't in place. A council
178 member noted that he isn't interested in seeing a continuation of the employee furloughs
179 as that isn't a practice that benefits the long term picture.
180
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L 181 Mr. Rolek added that this year's budget is on target so that is good news. He answered
182 some questions regarding employee health care costs and heard that the council is
183 interested in receiving more background information in that area.
184
185 A council member recommended that the road maintenance budget remain fully funded.
186 The council concurred that they may hold some special sessions in August for budget
187 discussion. A council member expressed concern about any department that is going
188 over their budget.
189
190 Regarding the estimate for upcoming property valuations, Mr. Rolek suggested that he
191 has been informed it is in the area of an 8.9$%decrease. There was discussion about
192 looking at both the tax rate and the levy amount during budget consideration.
193
194 7. Comprehensive Plan—Community Development Director Grochala presented
195 proposed text changes to the 2030 Comprehensive Plan document based on the June
196 council discussion and directions. The changes proposed would 1) add to the land use
197 plan a statement within the growth management policy that establishes an annual average
198 of 230 new residential dwelling units per year; and 2) add to the housing plan a statement
199 that acknowledges the Metropolitan Council's affordability goals but does not commit to
200 providing funding for housing. Based on the council's request, Mr. Grochala also
201 reviewed the tools available to the city in the Plan to deny approval of new development.
202 The council recognized that it would be difficult for the city to say straight out that there
203 will be no affordable housing goal especially because that would limit senior housing
204 possibilities.
205
206 Staff feels that the proposed changes can be presented to the Metropolitan Council and
207 will not meet with opposition. Staff will return in August with an update on the process.
208
209 8. Liquor Ordinance Requirements—City Clerk Bartell recalled that the council has
210 requested a review of the city's charges for background investigation fees related to the
211 issuance of liquor licenses. She noted that the staff report contains some historical data
212 from the recent past as the council has considered this matter twice within the last year
213 and a half She presented information on what is currently in the city's fee schedule,
214 noting that regular liquor licenses are the only license for which the city charges a
215 background fee. Captain Strege of the Police Department confirmed that the
216 department's cost in doing this type of background check is in line with the fee charged.
217 Also, the department does the same work for an initial check as for a renewal. The
218 department does not receive any revenue from the fee however and would recommend
219 continuing the practice of the check with or without the fee.
220
221 The question being does the council wish to continue the city's practice of charging a fee
222 for annual background investigations of liquor license applicants, discussion ensued. A
223 council member noted that he had polled some area communities about their practices
224 and fees (hand out). He found that only Lino Lakes and the City of Columbus charge a
225 fee for a background check on a renewal. He found generally that cities include the cost
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CITY COUNCIL WORK SESSION July 6, 2010
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226 of the investigation in their renewal charge. There is a range in what cities charge for
227 their license fee but it doesn't seem to indicate that the $4,500 license fee is out of line.
228 This council member has a preference to include the cost of the investigation(and other
229 charges) in one license renewal fee. It was noted that there is a general concern that's
230 been heard from license holders that the background check fee isn't right. That's an
231 alarm and calls for the council to review the practice. The city values its business
232 establishments. A council member expressed an idea of using a three year plan, where
233 they pay the first year and get a reduction in the following two, sort of a stimulus
234 package.
235
236 City Clerk Bartell pointed out that consideration of background check charges should
237 probably include the off-sale and other types of liquor licenses as well. A council
238 member suggested that the on-sale restaurants seem to be the ones that are suffering the
239 most in this economy.
240
241 A council member suggested that since the council wants to continue the practice of an
242 annual background check, drop the fee to $150 overall and then,the following year, add
243 that amount into the license fee. The city clerk noted that there could possibly be a
244 problem in that off-sale fees are capped by the state.
245
246 The council concurred that the decision doesn't have to be made at this time of the year
247 but should be considered before next year's renewal period. City Clerk Bartell suggested
248 that she would put on her schedule a review of liquor license fees overall and will perhaps
249 come forward with new information or a better practice used by another city.
250
251 9. Draft Ordinance Amendments—Community Development Director Grochala noted
252 that the city accepted grant funds last year from the Department of Natural Resources to
253 be used to integrate natural resource information and data into local development and
254 conservation plans. Staff, with the assistance of Bonestroo,has developed the draft
255 ordinances before the council dealing with site layout performance standards, landscaping
256 and tree preservation standards, portions of the subdivision, platting, concept plan and
257 collaborative design process sections and some sections of the zoning code. Staff is not
258 requesting approval of the ordinance amendments at this time but will await the council's
259 approval of the new Comprehensive Plan. It is requested that the council begin their
260 review of these proposed changes.
261
262 10. Official Language - Acting Administrator Tesch remarked that discussion on this
263 matter seems to be at the point where he'd like the council's direction on whether they'd
264 like to consider an official language action as a resolution or an ordinance. A resolution
265 is more of a policy statement while an ordinance becomes part of the city code and is
266 more regulatory in nature. Mr. Tesch indicated that he would be able to do some of the
267 work on a resolution while an ordinance should be developed under the guidance of the
268 city attorney. A resolution would be prepared and then reviewed by the city attorney.
269 A council member suggested that either form, ordinance or resolution, should be handled
270 completely out in the open. A resolution may be most appropriate since this is a policy
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271 related issue. Information received from an English Only group that was received by a
272 council member was shared with Mr. Tesch; some of the information may be helpful as
273 he prepares a resolution proposal. Council members noted they've had lots of feedback
274 on the proposal and anticipate receiving more as it goes forward. One council member
275 received a suggestion from a resident to look at Google Translator as a way that the city
276 could provide translation services at no cost. Another council member suggested that
277 providing such a service could open the city to liability in providing translation services.
278
279 Mr. Tesch will work with Council Member Roeser on composing a resolution for
280 consideration.
281
282 11. Joint Council and Charter Commission Meeting Agenda - Acting Administrator
283 Tesch noted that the council has been provided with a draft agenda(provided by the
284 commission)for the upcoming joint meeting with the charter commission.
285
286 A council member asked why the question of paying the commission's outstanding legal
287 bill is on the agenda; hasn't that already been determined to be outside of what the
288 council can legally do? A member responded that it is perhaps on the agenda because
289 there are some charter commission members that may not have been involved in previous
290 discussions. The council confirmed that the amount of funding and what for is mandated
291 by state statute. The city can only authorize funding that is directly related to framing and
292 amending the city charter.
293
294 The agenda item regarding a code of conduct was discussed briefly. The council
295 questioned if it the subject is a code of conduct for the council or the commission as that
296 isn't clearly stated. City Clerk Bartell clarified that the information in the meeting packet
297 is the code of conduct from the city code and the code of conduct approved as a policy by
298 the council.
299
300 Regarding the tax cap amendment item, a council member suggested some concern about
301 having an unelected body putting forth a means to control the budget under the control of
302 the city's elected officials.
303
304 Regarding road improvements,the council noted that is their topic of interest. They
305 would like to see where the commission is at on that subject and ask them to come up
306 with some suggestions to work forward. The city isn't taking care of the infrastructure in
307 place so the problem must be addressed. It would be optimum to have the charter
308 commission make recommendations, forward that to the council and then a change could
309 be accomplished with a council vote. The council discussed the charter amendment
310 process set forth by state law.
311
312 REVIEW REGULAR AGENDA ITEMS
313
314 There were no changes to the regular agenda.
�.� 315
316
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317 The meeting was adjourned at 11:10 p.m.
318
319 These minutes were considered, corrected and approved at the regular Council meeting held on
320 July 26, 2010
321
322
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325 Julie e Bartell, City ler ' : ert, ayor
326
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