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HomeMy WebLinkAbout09/23/1998 Council MinutesCITY COUNCIL WORK SESSION SEPTEMBER 23, 1998 CITY COUNCIL WORK SESSION MINUTES DATE : September 23, 1998 TIME STARTED : 5:32 p.m. TIME ENDED : 8:55 p.m. MEMBERS PRESENT : Council Members Bergeson, Dahl, Lyden, Neal, Mayor Sullivan MEMBERS ABSENT : None Staff members present: Interim City Administrator, Dave Pecchia; Community Development Director, Brian Wessel; Assistant City Administrator, Dan Tesch; Park and Recreation Director, Rick DeGardner; Consulting City Engineer, John Powell; and City Clerk, Marilyn Anderson Dave added Item 9A, Update on Sick City Employee. He asked if the Council wanted to add Mr. Schreier on the agenda. He noted there is currently litigation occurring regarding this issue. A trial is set for November, 1999. Dave recommended Mr. Schreier provide an update in writing and invite him back at a later time if necessary. • It was the consensus of the Council to table this item and have Brian give an update at the next work session. • 1999 BUDGET DISCUSSION Jerry Shannon, Springsted, Inc. - Jerry reviewed a letter sent to the City outlining the 1999 budget requirements, current tax capacity rate, and responses to other requests he received. The letter explains why the tax is at that level and what can be done about it. He stated the City is working on a "bare bones" budget and there is not much room for growth. The City's tax capacity value has increased 4.28%. Chris asked if Lino Lakes is in the top 10% of communities in the state and why the City is being penalized in the amount of $155,000. Jerry indicated he could not answer where Lino Lakes sits in regards to other communities. Kim asked that Jerry determine where Lino Lakes is overall in the state and how the City compares to other comparable communities. She indicated the findings would be discussed at the next work session. Mr. Mark Ruff, Ehlers & Associates stated that Districts 3-1 and 3-7 were established in 1995 and are subject to the TIF penalty. The State imposed these penalties to deter cities from over using tax increment. The rational is that districts cost the State money. It is a way for the State to avoid paying aids based on cities development. School Districts have to levy money. In 1993, the State said that developers could not pay the TIF penalties. In 1995, cities had the option of donating 10% of the districts. The donation would have CITY COUNCIL WORK SESSION SEPTEMBER 23, 1998 been 1/3 the cost of the penalties. The Legislature will not allow the City to pay the local donation now. Mark stated the City has the following options: 1. Change the Legislature. 2. Remove some parcels from the TIF districts. 3. Lessen increase in penalty over the next five (5) years by extending the term of the districts. 4. Renegotiate agreements with developers. Mark stated the City's TIF Districts are not aggressive. Kim suggested that all options be pursued. Mark stated there is the risk of a higher interest rate regarding extending the term of the districts. Kim stated she would like to know if staff was aware of the penalty before this time. Brian stated the TIF Program began in 1995-1996. He assumed the penalty was not made because staff was instructed to follow another policy. Jerry stated the best bet is to convince the Legislature that the penalties are very unfair to communities. Kim asked why this is an issue two (2) years after the district was established. Jerry explained there is a lag time regarding the value of projects and the tax roll. John asked if this is the first time the City has faced a penalty. Mark stated there was a small penalty in 1998. Jerry stated that when the tax increment plans were put together HACA should have been discussed. Kim stated that staff should have been aware of the City paying the penalty and then reviewed the rest of the plans to ensure it did not happen again. Brian stated he is aware of discussions between the previous City Administrator and Finance Director. He said he was unsure of the reasoning to go this route. Mark stated the Department of Revenue made a ruling that the penalty will continue after the five (5) year period and go against the City's account. Jerry stated the City must absorb $155,000 with available funds. Kim suggested the City do all it can to mitigate the penalties. She asked for Council approval for staff to proceed with all the recommendations and discuss them at the next work session. John noted there is a risk involved with the option of extending the term of the district. He asked Mark to give Dave a recommendation regarding that option. It was the consensus of Council to direct staff to proceed with all options and direct Mark to give special consideration for the option of extending the term of the district. Kim asked this issue be on the agenda for the next work session. Dave stated that if the City wants to increase the tax capacity rate the Council must act on it Monday night. Chris noted that if the City makes a mistake it should not be passed on to the tax payer. Jerry stated that the City may be able to recover some costs from TIF 2 • • • • • CITY COUNCIL WORK SESSION SEPTEMBER 23, 1998 funds if the City can loosely demonstrate the City has absorbed costs for administrative costs. It was the consensus of Council not to increase the tax capacity rate. Auditor Services - Dave asked if the Council would like him to continue with RFP's for auditing services. He stated negotiations with the current auditor are not going well. It was the consensus of Council for the City to initiate a letter of termination to Tautges. Dave indicated he will consult with the experts regarding the date of termination. LAKES SHOPPING CENTER PROPOSAL, BRIAN WESSEL Brian went over the Lakes Shopping Center proposal. He stated staff will be asking for approval of the preparation of a Redevelopment Project Plan at the EDA meeting Monday, September 28, 1998. If approved, staff will be asking for Council approval for a public hearing regarding the project on October 26, 1998. Phase I will generate $70,000 in net tax revenues over the next ten years. The issue is whether or not Council feels it is a good idea to kick start the process with an incentive program. The incentive program will not begin until the McDonalds store and Amoco store are in place. The project will be 5-10 years away without an incentive program. If the City is in partnership with the developer the City is in a position to demand control over land uses and specific architectural standards. Jerry stated that if the City enters into a partnership with the developer if could be classified as a local effort TIF project which provides maximum flexibility of the funds. The project would have to be budgeted every year. Levy limitations could have a negative impact. Chris noted the City can not raise the tax rate for taxpayers and then give handouts for development. John stated that if the project is approved, it is an argument to the terms of the HACA penalty. A case could be made for the off set of some penalties based on effect that the Shopping Center proposal benefits the School District at the expense of the City. Brian indicated the developer has not stated they will not proceed without the incentive from the City. There is always a negotiation on terms. The developer may wait and let the project develop naturally. The infrastructure will be needed anyway. This item will be on the regular City Council agenda Monday, September 28, 1998. DISCUSSION OF CIRCLE PINES GAS FRANCHISE, JIM KEINATH, CIRCLE PINES CITY ADMINISTRATOR Mr. Jim Keinath stated the City receives a $40,000 annual franchise fee from the Circle Pines Gas Utility. Circle Pines Utilities is the only company that is paying a franchise fee. Mr. Vern Reinert stated he has conducted a year long study regarding this issue. The City has copies of all documents. He stated Minnegasco and NSP were willing to look at CITY COUNCIL WORK SESSION SEPTEMBER 23, 1998 franchise fees. He also noted that Minnegasco is providing gas service to Lino Lakes by "hop scotching" all over the City. He stated the Centennial Middle School has gas from Minnegasco without permission. Vern felt there may also be a safety issue. The gas service areas need to be planned to eliminate a "patchwork quilt" of utilities. Kim stated this is a goal for the City Administrator to accomplish by June 1, 1999. She stated she is not willing to make an agreement right now. She suggested Vern come back to the next work session to update Council regarding what actions are needed determine service areas for all gas providers and provide a recommendation for franchise fees to be paid by all providers. It is appropriate to have another discussion for interim franchise areas. She stated if one company has a franchise fee, all companies must have a franchise fee. Vern stated he needs an administrative contact and legal contact to continue this work. He noted alternatives to franchise fees have been looked at but were cost prohibitive. Many cities are establishing a meter fee. Vern cautioned about a political backlash concerning meter fees. Kim asked Vern to return in two (2) weeks to go over the map and make a recommendation. Vern stated he would like to get all the companies together and have a meeting with Dave. Kim stated the City is looking for additional source of revenue. She is committed to all companies paying a fee if one compete is paying a fee. DISCUSS SALARY ADJUSTMENTS, PHASE II RESTRUCTURING, DAN TESCH Dan reviewed the proposed new salaries needed for four (4) directors due to new responsibilities. The goal is to be fair, correct some wrongs, and have marketable salaries. Dan went over a statistical summary of Group 6 City salaries. The proposed salaries are a midpoint of average salaries for a Group 6 City. John asked for the figures showing that the new structure is costing the City less. Dan indicated he will provide a document showing those figures at the Council meeting Monday night. Kim stated the Directors do deserve more money because they are doing more work. Kim expressed concern regarding Dan's salary and if it is adequate relative to other salaries. Dan indicated he is comfortable with his proposed salary but has not yet spoke to Dave about it. John suggested someone else review Dan's salary. Dan stated the maximum salaries are according to Labor Relations guidelines. Kim asked for a cover letter indicating the salaries are according to the Labor Relations guidelines. She also asked for documentation indicating the proposed salaries are appropriate. She stated she wants the cover letter and documentation for Monday night. It was the consensus of Council that all pay changes increasing salaries are effective the date of the reorganization. All pay changes decreasing salary will be effective Monday night. This item will be on the regular City Council agenda Monday, September 28, 1998. 4 • • • CITY COUNCIL WORK SESSION SEPTEMBER 23,1998 DISCUSSION OF POLICY PLAN FOR THE COMPREHENSIVE PLAN, MAYOR SULLIVAN Kim stated that comments regarding the Policy Plan from Council Member Neal, Bergeson, and herself were provided to the Task Force Committee last week. Chris and Caroline provided their comments jointly this evening. Kim suggested a meeting be held between Council/staff with the Task Force prior to the Planning & Zoning meeting on October 14, 1998. Kim asked Dave to have the Police Department deliver Chris and Caroline's comments to the Task Force prior to tomorrow nights Comprehensive Plan meeting. Dave indicated the comments will be delivered tomorrow morning. Chris excused himself from the meeting at 8:07 p.m. DISCUSSION OF CONDITIONAL JOB OFFERS FOR POLICE OFFICER AND COMMUNITY SERVICE OFFICER (CSO), DAVE PECCHIA Dave stated that the background check has been completed on Mr. Daaron Arnold and he recommends him for the full time police officer position. Mr. Steve Bikkie is the candidate for the CSO position. He recommended hiring Mr. Bikkie for the CSO position dependent upon a satisfactory background investigation. Both of these items will appear on the regular City Council agenda Monday, September 28, 1998. DISCUSSION OF NEW ADMINISTRATORS SEARCH, DAVE PECCHIA Dave stated he has met with Harry Bruhl regarding where to go from here on the City Administrator search. Mr. Bruhl indicated the number two (2) candidate for the position would be adequate. He also indicated he would like to speak to a number of people in the field to get a list of names of potential candidates. The candidates would then be invited to an interview. Mr. Bruhl is willing to negotiate an additional fee for this service. Another option to find a candidate is an executive search. Mr. Bruhl feels he can meet the January 1, 1999, deadline. Kim noted this is a new process to get different candidates. Caroline suggested the possibility of a headhunter going into private industries to find a candidate. Kim stated the City cannot afford to have as novice at the top. It was the consensus of Council to have Mr. Bruhl renegotiate the contract and solicit new candidates through a different process. UPDATE ON SICK CITY EMPLOYEE, DAVE PECCHIA Dave stated a City employee is in the hospital with a serious illness. He asked for IIICouncil approval to send the employee flowers and a card. CITY COUNCIL WORK SESSION SEPTEMBER 23, 1998 It was the consensus of Council for the City to send flowers and a card to the sick City employee. Dave noted the League of Minnesota Cities contacted him and indicated there is no problem with a Council Member serving on the Charter Commission or the Chief of Police acting as the Interim City Administrator. John asked if City Committee appointees can serve as Election Judges. Marilyn stated the Council passed a motion that Council Members cannot be in a paid City position until one year after their the end of their Council term. Kim stated she believes an agreement was made that a person could only be on one paid Board. Kim directed staff to check on the agreement regarding paid Board positions and the prohibition of City Committee appointees and paid City positions. REGULAR AGENDA, SEPTEMBER 28, 1998 Kim noted that Item 8A, August 19, 1998, minutes, would not be changed because it is not a significant issue. MILLER'S SOUTH GLEN, WARE ROAD COST SHARING, BRIAN WESSEL Brian stated that Mr. Rick Carlson contributed $98,000 for the Ware Road Cost sharing. He passed out copies of all documentation regarding the contribution. Kim directed staff to make sure Chris receives a copy of the documentation. CSAH 14 (MAIN STREET) ACCESS MANAGEMENT CORRIDOR STUDY COST SHARING, BRIAN WESSEL Brian stated the County would like to conduct an Access Management Corridor Study on Main Street and would like the City to share in the cost. The Study would look at Main Street beginning at the western boundary of the City and terminating at Lake Drive. He stated approval will be asked in the future to authorize $2,150 be spent to share in the cost of the study. REGULAR AGENDA, SEPTEMBER 28, 1998 Kim stated consistency is needed for addressing the Variance Criteria provided in the Ordinance regarding agenda item 4A. Direct answers to the criteria must be addressed before the Council meeting on Monday. John noted it would be helpful if the green sheets from the Planning & Zoning Board indicated if a vote was unanimous or split. COMPREHENSIVE PLAN UPDATE, BRIAN WESSEL 6 • • • • • CITY COUNCIL WORK SESSION SEPTEMBER 23, 1998 Brian stated the last work session for the Comprehensive Plan Task Force is Thursday, September 24, 1998. The draft will be complete and go before the Planning & Zoning Board on Wednesday, October, 14, 1998. The Comprehensive Plan will come before Council on Monday, October 26, 1998. John suggested Council have at least one meeting with Mr. Vern Reinert without a representative from Circle Pines Utilities present. The meeting was adjourned at 8:55 p.m. These minutes were considered, corrected and approved at a regu on October 12, 1998. LfilcutatfAild. O Marilyn G. Anderson, Clerk -Treasurer Kim ouncil meeting held Transcribed by: Kim Points TimeSaver Off Site Secretarial, Inc. ayor