HomeMy WebLinkAbout09-07-2010 Council Minutes CITY COUNCIL WORK SESSION September 7, 2010
APPROVED
CITY OF LINO LAKES
2 MINUTES
3
4 DATE : September 7,2010
5 TIME STARTED : 5:30 p.m.
6 TIME ENDED : 9:05 p.m.
7 MEMBERS PRESENT : Councilmember Gallup, O'Donnell,
8 Rafferty(arrived at 5:53 p.m.),Roeser and
9 Mayor Reinert
10 MEMBERS ABSENT : None
11
12
13 Staff members present: City Administrator Jeff Karlson; Community Development
14 Director Michael Grochala; Director of Public Safety Kent Strege; Director of Public
15 Services Rick DeGardner; Utility Supervisor Tim Hillescheim; City Engineer Jim
16 Studenski; Director of Finance Al Rolek; City Planner Jeff Smyser; Economic
17 Development Coordinator Mary Alice Divine; City Clerk Julie Bartell.
18
19 1. Office of Energy Security Grant Award—Public Services Director DeGardner
20 introduced Tim Hillescheim, Utilities Supervisor for the city, and Dave Carlson of NAC
21 Mechanical Electrical Services. Mr. DeGardner reviewed his staff report that requests
22 council consideration of a grant award that would help to fund energy improvement
23 projects in three city buildings. In reviewing each proposed project,he explained the
24 current and proposed mechanical systems, the potential for energy savings with
25 improvements and the costs associated with each.
26
27 Mr. Carlson added that the estimates for energy savings were done with the assistance of
28 Xcel Energy as well as the Department of Commerce. He feels they are conservative
29 estimates. He also noted that some of the potential for savings will diminish if the
30 deadline for grants and rebates passes.
31
32 The council confirmed that moving on the projects would not be out of line with their
33 scheduled replacement and that there are no unannounced strings attached. A council
34 member asked what the corporate world would be using in terms of a suitable payback
35 period for these type of improvements and Mr. Carlson suggested a period of 10-15 is
36 what he sees in that area.
37
38 Staff indicated that they will return to the council for formal grant authorization.
39 Technically the grant funds are already reserved.
40
41 2. Electrical Changeout Savings Proposal—Public Works Facility—Public Services
42 Director DeGardner reviewed his written report on a proposal to proceed with an
43 electrical changeout(lighting retrofit) project at the city's public works facility. With the
44 availability of rebates bringing the project costs down and the resulting energy savings,
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CITY COUNCIL WORK SESSION September 7, 2010
APPROVED
45 the project payback term would be approximately 5.6 years. This is will additionally
L 46 make for uniformity in the bulbs throughout the facility.
47
48 Mr. DeGardner indicated that the funding for this and the previously discussed project
49 would be taken from the Municipal Buildings Fund and the council requested that they
50 receive an update on that fund and the impact of these projects.
51
52 Staff indicated, and the council concurred, that they will proceed to plan for this project
53 and will report to the council for final grant authorization.
54
55 3. Emergency Generator Proposal—Civic Complex—Public Services Director
56 DeGardner reviewed the proposal of a city investment in modifying the existing Police
57 Department emergency generator so that it will also serve the city hall complex. The
58 change would make the equipment eligible for savings from Xcel Energy and would thus
59 result in a payback term of 12 years. The project is a good combination of energy savings
60 and the security of an emergency generator for city hall. Without the project, a power
61 outage means that city hall is closed. He confirmed that the Police Department generator
62 has adequate capacity to handle the rest of the facility. He pointed out some
63 consequences of not having an emergency power source—an outage could lead to
64 freezing pipes in the winter, computer damages, loss of certain services provided through
65 city hall. Without power, a business continuity plan for the city hall isn't possible (the
66 Police Department does have emergency power). Also energy costs are expected to rise
67 so savings will only increase.
68
69 Tim Hillescheim,Utilities Supervisor, explained how Xcel Energy's peak savings
70 program works. It allows Xcel to ask the city to use generator power during certain
71 periods of higher use. There is a limit on the amount of time that can be requested and it
72 is usually just for a period of a few hours.
73
74 The council discussed the payback period and the impact of improving technology as well
75 as the bid process utilized by the city.
76
77 The council did not authorize staff to proceed but will keep the matter on the table as they
78 move through budget discussions.
79
80 4. Storm Water Utility—Community Development Director Grochala explained that
81 the city owns and maintains a storm water system and under federal law is therefore
82 required to implement a pollution prevention program related to that system. The costs
83 related to compliance and best practices are currently paid through the city `s property tax
84 system. In 2006,the city commissioned a study on implementing a storm water utility
85 that would use a fee system through which the city could obtain funding to meet storm
86 water needs without utilizing property taxes. One consideration is that under a property
87 taxing system, many properties (those that are tax exempt) do not contribute any funding
88 to the city's storm water program. A utility program also allows charges to be based on
89 use and potential runoff(based on amount of impervious surface). Mr. Grochala noted
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CITY COUNCIL WORK SESSION September 7, 2010
APPROVED
90 that he has reported to the council previously on a budget outline for how the city would
91 use utility funds and it is a limited scope. He reviewed the proposed line item budget.
92
93 A council member confirmed that additional funding(above this year's budget)will cover
94 only the work that should be done but that has been underfunded in the past. There was a
95 request for assurance that a new utility couldn't become a"blank check"and Director
96 Grochala responded that there have been qualifiers put into the proposed ordinance as
97 well as language that clarifies that utility revenue cannot be used to fund certain things;
98 there is also a requirement that a budget be prepared annually.
99
100 The mayor noted that there were some good questions and suggestions raised at the recent
101 public hearing on this ordinance and asked for a staff response. Mr. Grochala replied that
102 one question arose as to why there is not an exemption for a gravel road and he explained
103 that it is not considered a pervious surface; regarding an exemption for a private rain
104 garden, the consideration is more in the area of a possible credit for public rain gardens.
105
106 Regarding a question posed about the cost of the study, Mr. Grochala explained that the
107 studies have not been funded through the general fund but rather through a developer
108 funded account. He added that water quality improvement is the overall goal of the
109 storm water program and one result of a utility is that the city would see more work in
110 that area.
111
112 The mayor suggested that he sees the proposed budget as appropriately funding what
`-- 113 should be done in the area of storm water management,however, he is uncertain about
114 the need for a utility and he's still looking for more of a line item budget. Why not just
115 fund the program?
116
117 The council discussed the possibility of including funds in the coming budget. One
118 council member noted that a user fee (the utility) is closer to a fair paying system but it
119 would be clearer to the citizens if they received a tax credit statement that shows what's
120 coming off their property taxes as a result of the utility. There was also a suggestion of
121 establishing an advisory group that would monitor a utility. Staff indicated that the
122 monitoring group would be the Environmental Board.
123
124 Ron Leaf,the SEH consulting engineer who worked on the update to the study mentioned
125 that, looking ahead, it appears that the government is going in the direction of requiring a
126 dedicated funding source for storm water management although that is not yet the case.
127 When asked if he could explain the minimum amount of work required of the city, he
128 responded that it isn't easy to identify minimums but rather the city should be working
129 out an appropriate program based upon its goals.
130
131 Staff was directed to prepare a more detailed budget.
132
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CITY COUNCIL WORK SESSION September 7, 2010
APPROVED
133 Shawn Turcotte, 850 Olive Street,addressed the council. He suggests that it is hard to
134 see that the city has a storm water management problem so he doesn't understand the
135 need to dedicate funds to solve the problem.
136
137 It was explained that there are federal mandates involved and also that the matter isn't
138 just about visible problems like flooding but also about water quality. It is also important
139 to do proper maintenance that keeps pipes open and flowing.
140
141 The council concurred that they would not be considering first reading of the ordinance at
142 the September 13 council meeting but rather would be continuing to receive public
143 hearing comments.
144
145 5. Illicit Discharge, Detection and Elimination Ordinance—Community Development
146 Director Grochala noted that this ordinance was approved for first reading but the council
147 requested additional information and posed certain questions on requirements. The
148 ordinance is required under national pollutant discharge elimination system legislation as
149 the city's regulatory mechanism to regulate, inspect and enforce illicit discharges into the
150 storm water system.
151
152 The council and staff discussed the need for an education component to let people know
153 about discharge activities that are harmful and/or illegal. Although the level of
154 enforcement that the city will be able to provide is not clear, it is clear that the regulations
155 are required in order for the city to maintain its permit for discharge and to avoid a
156 possible fine.
157
158 The council will consider second reading of the ordinance at the September 13, 2010
159 council meeting.
160
161 6. Comprehensive Plan Review (and Item 7,Housing Goals,LCA)—Community
162 Development Director Grochala briefly reviewed the changes proposed to the Land Use
163 and Housing chapters of the Plan. They are the same changes that were reviewed at the
164 August work session. He added that the changes were informally presented to the
165 Metropolitan Council (staff) and it appears they(the changes)would not impact their
166 current review. He noted that a comment was offered on the possible impact to the city's
167 eligibility for the Livable Communities Program and discussed the difference in how
168 housing goals are being calculated for that program.
169
170 There was confirmation from staff that the city's qualification for the Livable
171 Communities Program comes through the bond payments in the interchange project
172 (because certain affordable housing would not have been built but for those
173 improvements).
174
175 City Planner Smyser remarked that since the only downside to participating in the Livable
176 Communities Program is that you could be committing to spend money to be eligible and
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177 that the city is already eligible,there doesn't seem to be a down side. The upside of
178 participating is the possible availability of funds.
179
180 The council reviewed the former compared to the new housing goals and agreed to add
181 consideration of a participation resolution to the next council agenda.
182
183 The council will continue discussion of the Comprehensive Plan update at the next
184 regular work session.
185
186 Traffic Signal Referendum Communication Plan—Economic Development
187 Coordinator Divine reviewed her report outlining possible methods of communication
188 including the city newsletter, website, press releases, public access television, information
189 meeting and signs at the intersections.
190
191 One council member noted his uncertainty about the need for a communication plan; it
192 could be perceived as support. Another member recommended leaving communication
193 of the referendum up to the local papers;the city is offering people the opportunity to
194 choose these projects but is not promoting them.
195
196 Information will be put on the city web site and a factual press release issued.
197
198 Organizational Review—The mayor recalled that the council has discussed several
199 times the need for a comprehensive review of the city organization. The decision was
L 200 made to wait on the review until a permanent city administrator was in place and that is
201 now the case. He noted that the Acting City Administrator had received the names of
202 three possible firms. There is an interest in having the firms (could be others)come in
203 and give a presentation on what they could offer. He recognizes that the city needs to
204 have some information on the scope of the project. This is looking like a project for next
205 year.
206
207 A council member suggested the city consider the issuance of an RFI (request for
208 information)thereby allowing firms to present what they normally do. He sees the
209 council deciding on some general goals and objectives, releasing that information as an
210 RFI and using the responses to issue a request for proposal.
211
212 Administrator Karlson recommended that staff could be in contact with some other cities
213 to see what has been done and their results.
214
215 The council concurred that the matter will be added to the work session preceding the
216 September 27, 2010 council meeting; in the meantime, council members should forward
217 their ideas to the city administrator.
218
219 Regular Agenda Items—The regular agenda was reviewed.
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CITY COUNCIL WORK SESSION September 7,2010
APPROVED
222
223
224 The meeting was adjourned at 9:05 p.m.
225
226 These minutes were considered, corrected and approved at the regular Council meeting held on
227 September 27, 2010.
228
229
230 rTh
231
232 e Bartell, Cit Cleric Jeff einert, Mayor
233
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