HomeMy WebLinkAboutMinutes - 2010/08/23PROCEEDINGS OF THE MOUNDS VIEW CITY COUNCIL
CITY OF MOUNDS VIEW
RAMSEY COUNTY, MINNESOTA
Regular Meeting
August 23, 2010
Mounds View City Hall
2401 Highway 10, Mounds View, MN 55112
7:00 P.M.
1. MEETING IS CALLED TO ORDER
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL: Flaherly, Stigney, Hull, Mueller, Gunn.
NOT PRESENT: None.
4. APPROVAL OF AGENDA
A. Monday, August 23, 2010, City Council Agenda.
MOTION/SECOND: Gunn/Hull. To approve the Monday, August 23, 2010, agenda as
presented.
Ayes — 5 Nays — 0 Motion carried.
5. PUBLIC INPUT
None.
6. SPECIAL ORDER OF BUSINESS
A. Car Show Awards Presentation
Council Member Mueller indicated over 100 vehicles took part in the 4th Annual Mounds View
Car and Tractor Show. She and Mayor Flaherty presented several awards to three car owners
that were not presented at the event.
7. COUNCIL BUSINESS
A. 7:05 p.m. Public Hearing to Consider Resolution 7662, a Conditional Use
Permit for an Oversized Garage at 8191 Spring Lake Road.
Planning Associate Heller explained the applicants, Robert & Lori Nordby, are requesting
approval of a conditional use permit to construct an oversized garage on their property at 8191
Spring Lake Road. The applicants want to expand their current 22'x24' detached garage (528
Mounds View City Council August 23, 2010
Regular Meeting Page 2
square feet) with a 20'x24' expansion onto the rear of the existing garage. The applicants have
submitted plans for a garage expansion that would create a garage larger than what the City Code
allows. The City limits the size of accessory buildings, whether attached or detached from the
house, to a maximum of 952 square feet. Any building larger than 952 square feet must get City
approval of a conditional use permit. The garage the Nordby's are proposing would be 1,008
square feet. The applicants indicate that they want the extra space to store their boat indoors.
Planning Associate Heller indicated the request for a Conditional Use Permit to construct the
1,008 square foot garage satisfies the requirements as stated in Section 1106.03 and 1106.04,
Subdivision 6 of the Mounds View Zoning Code. The proposed garage would meet all City
setback requirements. Staff recommends approval of the conditional use permit as requested
with one additional condition that all runoff water shall not affect neighboring properties.
Mayor Flaherty opened the public hearing at 7:10 p.m.
Hearing no public input, Mayor Flaherty closed the public hearing at 7:10 p.m.
MOTION/SECOND: Gunn/Mueller. To Waive the Reading and Adopt Resolution 7662, a
Conditional Use Permit for an Oversized Garage at 8191 Spring Lake Road, with one additional
condition addressing water runoff.
Mayor Flaherty questioned if the applicant understood the water runoff implications. Robert
Nordby, indicated he has discussed this additional condition with City staff.
Ayes — 5 Nays — 0 Motion carried.
B. 7:10 p.m. Public Hearing Second Reading and Adoption of Ordinance 849
Implementing a Franchise Fee on Center Point Energ,y Natural Gas
Operations within the City of Mounds View.
Finance Director Beer explained this ordinance continues the agreement with Center Point
Energy under which Center Point Energy will collect a franchise fee in the amount of 3.87% of
Center Point's natural gas gross operating revenues for services within the City of Mounds View
during the year 2011. This is a 2% increase over 2010's rate of 3.79%. The Bureau of Labor
Statistics released inflation numbers were released by the Bureau of Labor Statistics on August
13�' for the Minneapolis/Saint Paul area and the 12 month rate was a 2.32% increase. The
charter limits the fee increase to 2% plus inflation or 5% whichever is less.
Finance Director Beer stated it has been the practice to include a sunset provision in the
ordinance requiring it to be re-enacted each year. Franchise fees collected under this agreement
are minimal due to Center Point Energy's small customer base within the City of Mounds View.
Staff would request that a summary ordinance be published with the complete ordinance
available on-line and at City Hall.
Mayor Flaherty opened the public hearing at 7:15 p.m.
Mounds View City Council August 23, 2010
Regular Meeting Page 3
Dan Mueller, 8343 Groveland Road, stated he was not in favor of extra fees or taxes, but felt this
franchise fee did assist the City by creating better roads along with funding additional police and
fire department needs. He hoped the Council would support the franchise fee and not fear the
loss of votes, because it was an election year.
Hearing no further public input, Mayor Flaherty closed the public hearing at 7:19 p.m.
Mayor Flaherty questioned how the franchise fees were distributed in the City's funds. Finance
Director Beer stated 50% went into the street improvement fund and 50% went into the general
fund. He indicated the percentage increase would generate an additional $4,900 for each fund.
MOTION/SECOND: Mueller/Gunn. To approve the Second Reading and Adopt Ordinance
849, Implementing a Franchise Fee on Center Point Energy Natural Gas Operations within the
City of Mounds View, viewing the pending, and that a summary Ordinance be published.
MOTION AMENDMENT: Hull/Flaherty. To Reduce the Franchise Fee from 3.87% to 3.75%.
Council Member Mueller stated she was not in favor of the amendment to her motion.
Council Member Hull stated he has been consistent in voting against increased franchise fees.
He had concerns with this type of taxation and would like the fee to be reduced.
Council Member Stigney indicated that by lowering the franchise fee, the City would need to
increase taxes on to the residents. He stated the City would then need to potentially raise the
levy. He felt it did not make sense to reduce the franchise fee.
Council Member Mueller understood that franchise fees affected every structure that uses energy
in the City; however, this was based on consumption. She indicated this was a fair and equitable
fee.
Mayor Flaherty stated fees were a form of taxation and was originally instituted to help the City
in tough financial times. However, it was to sunset and be phased out. He indicated the original
intent of the fee from 1992 has been lost.
Council Member Stigney indicated the Council had to address the needs of the City at this time
and the franchise fee was assisting the City financially at this time, especially with the large TIF
districts. He felt it would be foolishness to change the fee at this time.
Council Member Gunn explained the Council had no idea what the economy would do from
1992 to 2010, or that LGA would be cut. She was in favor of keeping the franchise fee and
reviewing the need for it on a yearly basis.
Mayor Flaherty commented the government continues to add fees that get absorbed into budgets
and are not able to ever be resolved.
Mounds View City Council August 23, 2010
Regular Meeting Page 4
Council Member Mueller stated the average family of four would incur a$3.00 fee over the next
year. If the increase were not instituted the City would need to tax the public to gain an additional
$10,000.
AMENDMENT VOTE:
Ayes — 2 Nays — 3(Stigney, Gunn, Mueller) Motion failed.
Council Member Stigney stated he would be in favor of raising the franchise fee from 3.79% to
3.95%. He felt this would save money to the residents
SECOND MOTION AMENDMENT: Stigney/Mueller. To Increase the Franchise Fee from
3.79% to 3.95%.
Council Member Stigney stated the increase would aid with the budget crisis while assisting to
keep the levy increase manageable.
SECOND AMENDMENT VOTE:
Ayes — 2 Nays — 3(Hull, Flaherly, Gunn)
MOTION ROLL CALL: Stigney/Hull/Mueller/Gunn/Flaherty.
Ayes — 3 Nays — 2(Hull, Flaherty)
Motion failed.
Motion carried.
C. 7:15 p.m. Public Hearing Second Reading and Adoption of Ordinance 850
Implementing a Franchise Fee on Xcel Energy Electric and Natural Gas
Operations within the City of Mounds View.
Finance Director Beer stated this ordinance continues the agreement with Xcel Energy under
which Xcel Energy will collect a franchise fee in the amount of 3.87% of Xcel's electric and
natural gas gross operating revenues for services within the City of Mounds View during the year
2011. This is a 2% increase over 2010's rate of 3.79%. The Bureau of Labor Statistics released
inflation numbers on were released by the Bureau of Labor Statistics on August 13�` for the
Minneapolis/Saint Paul area and the 12-month rate was a 2.32% increase. The charter limits the
fee increase to 2% plus inflation or 5% whichever is less.
Finance Director Beer commented it has been the practice to include a sunset provision in the
ordinance that requires it to be re-enacted each yeax. Staff recommended approval and requested
that a summary ordinance be published.
Mayor Flaherty opened the public hearing at 7:39 p.m.
Dan Mueller, 8343 Groveland Road, again encouraged the Council to proceed with the franchise
Mounds View City Council August 23, 2010
Regular Meeting Page 5
fee to assist the City financially. He requested the Council focus less on the previous suggestion
to sunset the fee and instead use the franchise fee to eliminate the need to increase property taxes.
Gary Quick, 8330 Knollwood Drive, explained he was on the Council when the franchise fee was
installed and increased. The fee assisted the City through tough financial times and had a sunset
clause to allow the Council to review the fee.
Hearing no further public input, Mayor Flaherty closed the public hearing at 7:42 p.m.
Mayor Flaherty commented the franchise fee has been in place for 18 years and stated the
original intent was to create a revenue source but was not intended to be long term. He agreed
the City needed additional revenue sources, and should perhaps look at other sources.
MOTION/SECOND: Stigney/Mueller. To approve the Second Reading and Adopt Ordinance
850, Implementing a Franchise Fee on Xcel Energy Electric and Natural Gas Operations within
the City of Mounds View, waive the reading, and that a suminary Ordinance be published,
amending the franchise increase to 3.95%.
Council Member Stigney again reiterated the fact that the franchise fee increase would assist the
City with the budget by increasing revenues and making the levy increase more manageable.
Council Member Hull requested a motion amendment to reduce the franchise fee to 3.75%. He
stated this was based on the same rationale as previously stated.
MOTION AMENDMENT: Hull/Flaherty. To Reduce the Franchise Fee to 3.75%.
Council Member Mueller stated the fee would greater benefit the City if not reduced. She
explained if the franchise fees were reduced, properly taxes would have to be increased.
Council Member Hull further reviewed the numbers on the franchise fee and felt people should
be impacted based on income and not with just a flat fee.
Council Member Stigney suggested the Council not reduce the franchise fee as taxes would then
need to be increased. He indicated there was a direct correlation between the two. Now was not
the time to reduce the rate, and that this should not be considered until the TIF districts end.
Mayor Flaherly indicated he did not feel the fee would ever go away and that this was not the
original intent.
Council Member Mueller stated as the TIF districts expire the City's revenue streams would
begin to increase. Now was not the time to reduce or alter the franchise fee.
AMENDMENT VOTE:
Ayes — 2 Nays — 3(Stigney, Mueller, Gunn) Motion failed.
Mounds View City Council August 23, 2010
Regular Meeting Page 6
Council Member Gunn questioned if the Ordinance could be amended and still be approved on a
second reading. City Attorney Riggs explained this could be done and if this failed, the Council
could revert back to the original Ordinance.
Council Member Mueller thanked Council Member Stigney for proposing to increase the
franchise fee, as it would benefit the taxpayers the most.
MOTION ROLL CALL: Stigney/Hull/Mueller/Gunn/Flaherty.
Ayes — 2 Nays — 3(Hull, Flaherty, Gunn) Motion failed.
MOTION/SECOND: Mueller/Gunn. To approve the Second Reading and Adopt Ordinance
850, Implementing a Franchise Fee of 3.87% on Xcel Energy Electric and Natural Gas
Operations within the City of Mounds View, waiving the reading, the and that a summary
Ordinance be published.
MOTION ROLL CALL: Stigney/Hu1UMueller/Gunn/Flaherty.
Ayes — 3 Nays — 2(Hull, Flaherty) Motion carried.
D. Resolution 7663, Authorizing Severance for Sergeant Mike Kampa, Mounds
View Police Department.
City Administrator Ericson stated Sergeant Mike Kampa has retired as a Mounds View Police
Sergeant effective July 30, 2010. Staff recommends the Council authorize severance payment to
Sergeant Kampa in accordance with the LELS (Sergeants) Union Contract. This also provides
for a payout of Sergeant Kampa's vacation and sick time into his Retirement Health Savings
Plan. Staff recommends severance payment for Sergeant Mike Kampa in the amount not to
exceed $52,019.69 into his Retirement Health Savings Plan.
Council Member Mueller asked if it was standard to allow employees to accrue such a great deal
of sick and vacation time. City Administrator Ericson stated the current contract does have
different standards and are subject to maximums.
Mayor Flaherty requested the double dollar sign be removed from the Resolution. He thanked
Sergeant Kampa for his service to the community but felt it was strange an employee could
accrue such a great deal of sick and vacation time. City Administrator Ericson reiterated that the
structure has changed.
MOTION/SECOND: Mueller/Gunn. To Waive the Reading and Adopt Resolution 7663,
Authorizing the Severance Payment for Sergeant Mike Kampa for an amount not to exceed
$52,019.69.
Ayes — 5 Nays — 0 Motion carried.
Mounds View City Council August 23, 2010
Regular Meeting Page 7
E. Resolution 7581, Approving Step and Wage Adjustment for James Ericson,
City Administrator.
City Administrator Ericson indicated he was appointed the interim Clerk-Administrator in
September of 2007 and appointed the permanent administrator effective February 11, 2008. His
supervisors, the Mounds View City Council, reviewed his performance as it relates to his
responsibilities outlined in the job description and in accordance with the expectations articulated
in previous job performance evaluations, at the January 25, 2010, Executive Session. It was
determined that Mr. Ericson is either meeting or exceeding stated expectations and understood.
the 2011 budget year would be challenging. He recommended the Step 4 adjustment be
implemented on January 1, 2011 for City Administrator James Ericson and not be retroactive,
consistent with the Employment Agreement on file.
Council Member Mueller noted the step and wage increase would not be retroactive and
questioned if this was all right of Mr. Ericson. City Administrator Ericson understood the budget
climate and was in favor of the step increase to be effective January 1 St
MOTION/SECOND: Mueller/Stigney. To Waive the Reading and Adopt Resolution 7581,
Approving Step and Wage Adjustment for James Ericson, City Administrator with an effective
date of January 1, 2011.
Council Member Stigney thanked Administrator Ericson far his dedication to the City.
Council Member Hull agreed stating Administrator Ericson was working for the betterment of
the City and its residents.
Mayor Flaherty also thanked Administrator Ericson for his service to Mounds View.
Council Member Gunn stated the Council made the right decision by hiring James as the City
Administrator.
Ayes — 5 Nays — 0 Motion carried.
8. CONSENT AGENDA
Council Member Mueller requested Item B be pulled from the Consent Agenda for further
discussion.
Council Member Stigney requested Item D be pulled from the Consent Agenda for additional
discussion.
A. Licenses for Approval.
Mounds View City Council August 23, 2010
Regular Meeting Page 8
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C. Resolution 7665, Renewal of Training Contract with Century College.
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MOTION/SECOND: Gunn/Mueller. To Approve the Consent Agenda Items A and C.
Ayes — 5 Nays — 0 Motion carried.
B. Resolution 7654 (updated), Approving Continued Participation in the
Metropolitan Livable Communities Act, and Establishing New Affordable
and Life-Cycle Housing Goals for the Years 2011 through 2020.
Council Member Mueller noted the Livable Communities Act was a goal and priority for the
City. The Council does look at the quality of life in Mounds View and if this were not approved,
the City would not receive grants or loans under the Metropolitan Livable Communities Act.
MOTION/SECOND: Mueller/Stigney. To Waive the Reading and Adopt Resolution 7654
(updated), Approving Continued Participation in the Metropolitan Livable Communities Act, and
Establishing New Affordable and Life-Cycle Housing Goals for the Years 2011 through 2020.
Mayor Flaherty requested the date in the title of the Resolution be corrected.
Ayes — 5 Nays — 0 Motion carried.
D. Resolution 7666, Authorizing Olsen Fire Inspection, Inc. to Replace a Fire
Alarm Panel located at the Mounds View Community Center.
Council Member Stigney suggested the problematic alarm panel be removed from the locker
room. City Administrator Ericson explained the smoke alarms that were malfunctioning would
be removed as they were unnecessary. The panel issue was called to the City's attention and the
City has determined to replace it, as parts were no longer available to repair it.
Council Member Stigney questioned if staff could remove the fire detectors. City Administrator
Ericson noted it would be more efficient to have Olson complete the work. He stated if the City
could complete the work for a less expense it would be done, understanding the majority of the
expense was the work needed for the new fire panel.
Mayor Flaherty asked why the smoke detectors were installed when they were not needed. City
Administrator Ericson indicated the City was going the extra mile and fire code has changed
since the locker rooms were added.
Mounds View City Council August 23, 2010
Regular Meeting Page 9
MOTION/SECOND: Stigney/Hull. To Waive the Reading and Adopt Resolution 7666,
Authorizing Olsen Fire Inspection, Inc. to Replace a Fire Alarm Panel located at the Mounds
View Community Center.
Ayes — 5 Nays — 0 Motion carried.
9. JUST AND CORRECT CLAIMS
Finance Director Beer answered the Council's questions related to claims.
MOTION/SECOND: Mueller/Stigney. To Approve the Just and Correct Claims as Presented.
Ayes — 5 Nays — 0 Motion carried.
10. APPROVAL OF MINUTES
A. August 9, 2010, City Council Meeting Minutes.
Council Member Stigney stated on Page 6, Line 43, "he" should be changed to "the."
MOTION/SECOND: Gunn/Hull. To Approve the August 9, 2010, City Council Meeting
Minutes as corrected.
Ayes — 5 Nays — 0 Motion carried.
11. REPORTS
A. Reports of Mayor and Council.
Mayor Flaheriy noted Festival in the Park went very well this past weekend, the Car Show was
tremendous. He thanked all of the volunteers, the Festival Committee and Assistant City
Administrator Crane for all of her work.
Council Member Gunn noted the Festival was great. She explained she sat at the Beyond the
Yellow Ribbon booth and gained a great deal of interest at the Festival. Council Member Gunn
would continue her efforts to get this initiative started in the City.
Council Member Mueller reported the Car and Tractor Show winners were submitted to the
paper. She thanked all of the sponsors, local businesses and Boy Scout troops involved in the
Car and Tractor Show. Council Member Mueller also thanked all those who assisted in
promoting the show. The City was honored to have a State Patrol vehicle at the show and then
she announced each winner at the car show.
Mayor Flaherty thanked Council Member Mueller for all of her work on the Car and Tractor
Show.
B. Reports of Staff.
Mounds View City Council August 23, 2010
Regular Meeting Page 10
City Administrator Ericson indicated that the fall issue of the Mounds View Matters would be
delivered in the next week or so. He explained he met with the North Metro Mayors Association
last week and further discussed joint purchasing and the City would look to have materials and
products for water treatment included in the joint purchasing agreement. There was a real
opportunity for savings on these items.
City Administrator Ericson reviewed the September work session agenda with the Council.
1. Finance Quarterly Report.
Finance Director Beer reviewed the quarterly finance report with the Council in detail. He
explained revenues were down due to the state of the economy but he was not concerned going
into the 2011 budget cycle. Finance Director Beer stated the remainder of the year would be
work on the budget.
Council Member Mueller questioned if any unfunded mandates would be going away with the
next budget cycle. Finance Director Beer was not aware of any proposed changes.
Council Member Stigney asked for additional information on the franchise fees per TIF district.
Finance Director Beer stated this information was tracked by the utility companies and not by the
City. Xcel was the sole keeper of that information.
C. Reports of City Attorney.
City Attorney Riggs presented the Council with a brief inemo.
12.
13.
Next Council Work Session:
Negt Council Meeting:
ADJOURNMENT
The meeting was adjourned at 9:02 p.m.
Transcribed by:
Carla Wirth
TimeSaver Off Site Secretarial, Inc.
Tuesday, September 7, 2010, at 7:00 p.m.
Monday, September 13, 2010, at 7:00 p.m.