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CITY COUNCIL WORK SESSION May 5, 2008
APPROVED
DATE
TIME STARTED
TIME ENDED
MEMBERS PRESENT
MEMBERS ABSENT
CITY OF LINO LAKES
MINUTES
: May 5, 2008
. 5:30 p.m.
. 8:30 p.m.
: Councilmember Gallup, O'Donnell,
Stoltz, Reinert (part) and Mayor Bergeson
: none
Staff members present: City Administrator, Gordon Heitke; Community Development Director,
Mike Grochala; City Planner, Paul Bengtson; Director of Public Safety, Dave Pecchia; Finance
Director, Al Rolek; Public Services Director, Rick DeGardner; Economic Development
Coordinator, Mary Alice Divine; Deputy City Clerk, Jean Viger; City Clerk, Julie Bartell
Anoka County Historical Society - Jan Anderson, Anoka County Historical Society Board of
Directors. The historical society was approached by the county to work on Anoka County
Sesquicentennial activities. The events were successful and the society is visiting participating
cities to thank them for their assistance. (A DVD highlighting the event activities was viewed.)
Ms. Anderson presented the council with a commemorative photo and coffee mugs.
The Council offered thanks to the historical society for all their efforts.
Town Center Update - Finance Director Rolek introduced Paul Steinman of Springsted, Inc.
Mr. Rolek noted that he and Mr. Steinman would be reporting on the status of the Town Center
(also known as Legacy Development) project. He added that in addition to working with Mr.
Steinman, staff also consulted with bond counsel, Steve Bubul (Kennedy & Graven) and finance
consultant Terry Heaton (Springsted, Inc) in preparing the report.
Mr. Steinman reviewed his written report first summarizing the initiation of the project with the
issuance of general obligation tax increment financing (TIF) bonds in 2007. The primary focus
of the report relates to how those bonds will be serviced. There are two interfund loans included
in the finance plan that are dependent upon tax increment generated in the district. He presented
the first repayment scenario and the assumptions upon which it is based. The assumptions
include additional housing development in years 2011, 2012 and 2013 (total value of $20.2
million), maximum value of the full -build out of the site at $31.4 million (as originally estimated
in the TIF plan), and a collection year through 2023 with some additional MSA funds required in
deficit years that would subsequently be repaid with future increment. The second scenario
presented (introduced as the "worst case") includes the same assumptions as scenario one with
the exception of no development occurring beyond what currently exists and utilization of the
maximum TIF term of 26 years (collecting through 2032); he noted that this is an unlikely
scenario. The third scenario, identified by the financial consultant as well as staff as the most
•
CITY COUNCIL WORK SESSION May 5, 2008
APPROVED
46 probable scenario, includes all the same assumptions as scenario one except it utilizes the
47 maximum term of 26 years for collection of tax increment.
48
49 Finance Director Rolek explained that the project does have some built in funding mechanisms
50 in case of short fall including a tax levy and MSA funding or borrowing. Regarding the
51 interfund loans, the funds were committed to the project and if they can be collected at the end,
52 that is a bonus.
53
54 Finance Director Rolek also noted that the hotel project is currently in default with the bank
55 having taken control of the property. Although the taxes are delinquent, the bank is indicating
56 they will make those payments. Without those payments, the city will have to look at an
57 alternative approach by year 2009, perhaps an interfund loan or tax levy.
58
59 The council discussed when decisions would need to be made. A levy decision would be
60 necessary during yearly budget discussion; the tax increment situation will become clear as the
61 due dates pass and a decision to maximize the term of the district just needs to be made before
62 the end of the 17 year period. The council requested that Mr. Rolek keep them updated; there
63 will be more discussion at next month's council work session.
64
65 Rain Sensor Incentives - Public Services Director DeGardner explained that staff has identified
66 a program through Toro that would allow the city to purchase commercial grade rain sensors at a
•67 discounted cost (he recommends that the city purchase 200). He reviewed the three options
68 being presented for a rain sensor retro fit program: sensors made available to residents at the
69 city's cost of $50 and no installation included; sensors and installation made available to
70 residents for $50; and sensors and installation made available to residents at no cost. He
71 confirmed that the sensor equipment involved is commercial grade to prevent future operation
72 complaints, etc. Communication would be included with the water rate campaign (if authorized)
73 along with all the regular devices (website, water bills, newsletter, etc.).
74 The council considered the significance of the cost impact to the Water Fund of option two
75 ($7,500) or option 3 ($17,500). The Water Fund is an enterprise fund so there is no tax impact
76 and the fund can absorb this and that should be included in any communication. Since it is
77 supported by the Water Fund, the program should not apply to residents with private wells.
78 There was some concern that demand will outpace the number of units especially if they are
79 given away free.
80 In response to a question about why staff would want to be involved in the scheduling, Mr.
81 DeGardner noted that he would like to remain in control of citizen contact. Staff noted that the
82 plan is to make these available to those who don't have a rain sensor but there is a question about
83 how to handle a replacement issue.
84 The council directed staff to proceed with option 3.
85
86 Blue Heron Days/Lino Lakes Ambassadors Funding — Finance Director Rolek recalled that in
•87 2007 the council authorized funding for Blue Heron Days in the form of one-time hospital
88 district funds that had become available. At the current time, Blue Heron Days doesn't actually
CITY COUNCIL WORK SESSION May 5, 2008
APPROVED
•89 have a legal organization (in the past the event was officially sponsored by the Lino Lakes
90 Jaycees) and that makes it difficult to designate an authority to expend the funds. Ms. Lynn
91 Bergman of the Ambassador's Program is a possible designee. The staff report outlines what the
92 fees could be used for but an official designation is still needed.
93 The council requested that the group submit a budget and they will then consider a resolution
94 officially designating a certain person to expend the funds.
95
96 Xcel Energy Franchise Agreement — Administrator Heitke noted the council's previous
97 direction that staff report on how the city could incorporate franchise fees into a renewal contract
98 with Xcel Energy as well as with other utilities serving the city. Assistance was received from
99 Mr. James Strommen, an attorney specializing in utility franchise agreements and negotiations,
100 who recommends that the city adopt a right-of-way ordinance that would provide overall
101 regulations regarding the public right-of-way. He is also recommending that the city institute a
102 uniform franchise agreement for all the utilities with a common rate design.
103 Mr. Heitke also noted that the city of Circle Pines is undergoing a similar process at this time and
104 the attorney is suggesting that it may make some sense to bring forward a coordinated
105 agreement. Administrator Heitke explained that he isn't recommending that but wanted to
106 understand how the council would like to proceed. The real issue is that the city is incurring
107 costs but has no cost recovery. The current situation is that only those residents receiving
108 services through Centennial Utility pay an extra 7 percent but it benefits others.
0109 Public Services Director DeGardner reported that the city does attempt to charge for public
110 property repairs when damage is done by utility contractors; however, there have been occasions
111 when the city cannot make a connection with who caused the damage. A right-of-way ordinance
112 would put in a place a defined system for contractor work so the city can recoup costs. Lino
113 Lakes is one of the few cities in the area that has not instituted right-of-way regulations.
114 A council member noted that the right-of-way regulations would seem to just represent a pass
115 through because the citizens pay one way or another. How would this reflect on customer bills?
116 Staff responded that this is typically related to new service areas and it would be difficult to
117 quantify on a bill.
118 The council concurred that the right of way matter should remain separate from the franchise fee
119 question.
120 Administrator Heitke noted that he has received direction from the council to include franchise
121 fee language in the Xcel Energy agreement that is currently being drafted.
122 The right of way ordinance will be brought to the next work session.
123
124 Lino Lakes Lions Club Sign Donation - Neal Benjamin, Lino Lakes Lions Club, reported that
125 the Lions are interested in donating funds to the city for a community based reader board sign.
126 They have done some initial research on size and costs, etc. as a starting point. They are
127 interested in partnering with the city in planning something, but it is not their goal to dictate the
128 process. They believe that two signs would best serve the community based on geography and
W29 the desire to get the word out all over.
CITY COUNCIL WORK SESSION May 5, 2008
APPROVED
•130 The council indicated that staff should work with the Lions on viability and location. There was
131 a consensus of support for the concept and an indication that more conversation is certainly
132 warranted.
133 Lino Lakes Lion Dick Schumacher joined the discussion. The Lions are very interested in
134 community awareness and they would also like to see some recognition of the Lions on the signs
135 themselves.
136 Administrator Heitke will assign staff to contact Mr. Benjamin to work further on the concept.
137
138 Animal Ordinance - Community Development Director Grochala reported that the council has
139 approved first reading of this proposed ordinance that combines certain sections of the code and
140 presents a more comprehensive and up to date animal regulation code. A public meeting
141 sponsored by the Lino Lakes Police Department was held on April 8, 2008; comments received
142 at that meeting as well as direct communications to City Hall have been included in the staff
143 report. Staff has made a few changes to the ordinance since the council saw it at first reading,
144 mainly based on comments received, including the definition of "at large", a modification to the
145 right of entry language to require a search warrant, and some minor notification requirements as
146 well as an exception relative to hunting dogs. The largest issue seems to be the matter of
147 restraint on premises. Some language has been added to the ordinance to clarify that but the
148 language continues to require certain restraint that does not include voice control.
149 A council member suggested that the city has grown but it is still quite roomy and the restraint
10150 issues seem to be about animals after each other. Would some moderation such as application to
151 only smaller lots be feasible?
152 Public Safety Director Pecchia noted that the ordinance language that is being recommended is
153 for mitigation and prevention — to prevent injuries.
154 Community Development Director Grochala suggested that it would be difficult for the police
155 department to enforce if the regulations are tied to something like lot size.
156 In response to a question about possibly certifying animals that can be voice controlled, the
157 police chief responded that it wouldn't be reasonable. If the council were to decide to allow
158 voice control, the department would intend to keep a record and report on occurrences.
159 The council directed staff to add language allowing voice control but clarified that voice control
160 would mean that a responsible party would have to be present and it would not apply to a dog
161 running loose. Hunting provisions allow for voice control currently.
162 The ordinance, as amended, will be presented to the council for second reading and adoption.
163
164 Review of May 12 Regular Council Meeting Agenda — There were no changes (other than
165 adding an item on Blue Heron Days to the consent agenda) to the council agenda.
166 Items discussed:
167 Election Precinct Boundary Change - Jean Viger, Deputy City Clerk, reviewed a proposal to
68 change voter precinct borders affecting Precincts 6 and 7. A change in state law allows the
169 proposed change which will in turn make polling places more manageable by more evenly
CITY COUNCIL WORK SESSION May 5, 2008
APPROVED
11 170 distributing registered voters. She noted the map included in the staff report and explained
171 where the new boundary would be located. State statute requires that the city council approve
172 this and the deadline for changes is May 30. The county will assist with the change by preparing
173 new maps and by notifying affected registered voters.
174 The meeting was adjourned at 8:30 p.m.
175
176 These minutes were considered, corrected and approved at the regular Council meeting held on
177 May 27, 2008.
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182 41',
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184 Juli. - Bartell, Cit, C
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John Bergeson, Mayor