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HomeMy WebLinkAboutAgenda Packets - 2012/06/04 CITY OF MOUNDS VIEW CITY COUNCIL WORK SESSION AGENDA MOUNDS VIEW CITY HALL Monday, June 4, 2012 7:00 p.m. ROLL CALL: Flaherty, Stigney, Hull, Mueller, Gunn PUBLIC COMMENT Citizens may speak to issues not on tonight’s agenda. Before speaking, please give your full name and address for the minutes. Also, please limit your comments to three minutes. Agenda Items Discussed by Consensus 1. Presentation From New Business Prospect: Apple Tree Dental 2. Presentation From Tri-City County Road 10 Task Force 3. Anoka County/Blaine Airport Operations Update, Joe Harris, Airport Manager (verbal report) 4. Council Budget Priorities Next Work Session: Monday, July 2, 2012, at 7pm Next City Council Meeting: Monday, June 11, 2012, at 7pm Item No: 1 Meeting Date: June 4, 2012 Type of Business: WS Administrator Review : ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Heidi Steinmetz, Economic Development Specialist Item Title/Subject: Presentation From New Business Prospect: Apple Tree Dental Introduction Apple Tree Dental is considering expanding to Mounds View. They are potentially interested in purchasing the former Let’s Get Graphic building located at 2442 County Road 10 for a price of $1 million (see below image). The 14,560 square foot building is currently vacant and bank-owned. 2442 County Road 10 Background Apple Tree Dental is a non-profit dental organization that was founded twenty-seven years ago. They have four clinics located in Coon Rapids, Hawley, Madelia and Fergus Falls. They also operate a part-time outreach dental clinic in Rochester. The garage located at 2442 County Road 10 is enticing to Apple Tree Dental because they also offer a comprehensive mobile dental service. This service provides onsite care to nursing homes, group homes, Head Start centers, schools and assisted living facilities. Apple Tree Delivery Vehicle Details about Apple Tree Dental are available on their Website at www.appletreedental.org. 6/4/2012 Work Session Item 1 – Business Prospect: Apple Tree Dental Page 2 of 2 Discussion During the June 4th Work Session, Apple Tree Dental’s founder and president, Dr. Mike Helgeson, will be providing the City Council will an overview of Apple Tree Dental. Dr. Helgeson and his team are still considering financing options for their potential relocation to Mounds View. One of the financing options they are considering is conduit debt financing, which is bonds used for development. If the City were to participate in this financing tool, the City would receive 1% interest on the amount of debt issued. The amount of debt issued for the project could be between $2 and $3 million, so 1% interest would equate to $20,000or $30,000 for the City. Conclusion If Apple Tree Dental purchases 2442 County Road 10, they would be exempt from paying property taxes because they are a non-profit entity. The property taxes for 2442 County Road 10 are currently about $50,000 per year. If Apple Tree Dental moves to Mounds View, they would be occupying a building that has been vacant for quite some time. Their build out would be significant, which would create building permit revenue for the City. They would also be creating new, high-paying jobs in Mounds View and serving the needs of low-income children and families, elderly nursing home residents, people with disabilities and others who have serious dental needs. Respectfully submitted, Heidi Steinmetz, Economic Development Specialist Item No: 2 Meeting Date: June 4, 2012 Type of Business: Work Session City of Mounds View Staff Report To: Honorable Mayor and City Council From: James Ericson, City Administrator Item Title/Subject: Presentation from Tri-City County Road 10 Task Force Regarding Assigning a Name to County Road 10 Introduction: The City Councils from Mounds View, Blaine and Spring Lake Park met in joint session on Wednesday, May 25, 2011. One of the issues discussed concerned the ongoing and persisting confusion regarding the name of County Road 10. The City Councils directed the administrators to organize a task force to consider a consistent, unified name for the corridor from 35W in Ramsey County to Highway 47 (University Avenue) in Anoka County. Discussion: Subsequent to the May 2011 tri-city Council meeting, each city made appointments to the Task Force. Mounds View appointed residents Helen Chambers and Joan Bosard and business representative Jason Helgemoe from Western Bank in January of 2012. The Task Force met on February 29, March 21 and again on April 11 in conjunction with the Mounds View Business Council. The Task Force discussed its purpose, desired outcomes, anticipated duration and reviewed corridor background information and previous work efforts. After considering some guidelines for what the name should be or represent, numerous suggestions were made and subsequently voted upon. A primary name recommendation was made by the Task Force, that being “Northtown Boulevard.” A secondary recommendation was also made in the event consensus could not be reached among the three City Councils, that being “Mounds View Boulevard” in Ramsey County and “Northtown Boulevard” in Anoka County. Despite the secondary recommendation, the Task Force believes it would be much better to have ONE name from I-35W to University Avenue (Highway 47.) Recommendation: Members of the Task Force plan to attend the meeting and provide feedback to the Council regarding their naming recommendation of the County Road 10 corridor. Staff would like some direction from the City Council as to their level of support for the recommendation. Spring Lake Par and Blaine will be meeting later this month to consider the Task Force’s recommendation. Respectfully submitted, ________________________ James Ericson City Administrator Tri-City County Road 10 Task Force February 22, 2012 ~ Welcome Letter ~ Greetings! You have been appointed by your community to serve on a tri-city task force with the intended purpose of identifying a single, consistent name for the County Road 10 highway that passes through Mounds View, Spring Lake Park and Blaine, from 35W in the southeast to University Avenue (Highway 47) in the northwest. After the new US Highway 10 opened in 1999, Ramsey County and Anoka County maintained the original numerical designation (Co. Rd 10) for the old highway, which has led to years of ongoing confusion. Despite the passage of time, confusion remains an issue for businesses and residents; people driving on Highway 65 and Interstate 35W are presented with TWO options for roadways with the numerical designation of “10.” Ramsey and Anoka counties have advised that while the cities can adopt a “name” for the roadway, the underlying numerical designation would be unaffected. The first meeting of the Task Force is scheduled for February 29, 2012 at 9 am, at the Mounds View City Hall, located at 2401 County Road 10. A draft agenda is attached along with a list of Task Force Members. Should you h ave any questions bforehand, feel free to contact Jim Ericson, Mounds View City Administrator, at 763- 717-4011 or by email at jime@ci.mounds-view.mn.us. Coon Rapids COUNTY ROAD 10 US HWY 10 Blaine Tri-City County Road 10 Task Force Wednesday, February 29, 2012 9:00 am – 10:30 am Mounds View City Hall 2401 County Road 10 City Council Chambers MEETING AGENDA 1. Introductions 2. Task Force purpose 3. Desired outcomes & anticipated duration 4. Corridor background & previous work 5. Naming guidelines 6. Brief brainstorming session 7. Additional outreach efforts? 8. Meeting times/dates/locations 9. Conclusion A County Road 10 History Originally constructed as a two lane rough gravel road, Highway 10 provided access to and from the capitol city of St. Paul and the farmlands of northwestern Minnesota and towns such as Anoka, Elk River, Saint Cloud and Moorhead, and further beyond into North Dakota. The state assumed jurisdiction of the "road" around 1920 and a few years later replaced the gravel with two lanes of concrete to form the rural style divided highway. The roadway was expanded to four lanes from Highway 96 through Coon Rapids in the 1960s (the Anoka Cut-Off) and shortly thereafter plans were drafted to construct a new limited access Highway 10 north of its present location. The first leg of the new Highway 10 was completed through Coon Rapids in the early 1970s with the old corridor renamed Coon Rapids Boulevard. In the late 1970s, the precursor to new Highway 10—Trunk Highway 118—was constructed, connecting 35W in Mounds View to Highway 65 in Blaine. In 1999, Trunk Highway 118 was extended through Blaine to 610 and Highway 47. The following year, MnDOT “turned back” the roadway then known as Highway 10 to Ramsey and Anoka Counties on June 9, 2000. The Counties elected at that time to not change the numerical designation of their newly acquired former highway. Prior to the 1999 opening of the new Highway 10 system, in excess of 44,000 vehicles per day were driving on County Road l0 through Mounds View, Spring Lake Park and Blaine. After the changeover, there was immediate confusion as motorists driving on I-35W and Highway 65 were presented with two Highway 10 options. While supplemental signage has been added to help differentiate the two routes, people unfamiliar with our region remain perplexed. To establish a much needed identity and to eliminate persisting confusion, the old Highway 10 segment originating in Mounds View needs a name. Note: The above historical narrative was written in 2005. Seven years later, motorists remain confused and perplexed and business owners remain frustrated. The most recent traffic counts (2010) reflect 78,000 ADT on Highway 10 and 22,000 on County Road 10 for a combined daily volume of 100,000 vehicles. That’s a lot of traffic for two roadways designated “10” less than one mile apart from each other. Cities want to explore renaming County Road 10 Friday, June 3, 2011 by Tim Hennagir What’s in a name? Plenty, especially if the moniker in question involves County Road 10 and the communities of Blaine, Spring Lake Park and Mounds View. Changing the name of the road and formation of a citizens’ committee to study the idea came up May 25 during a tri-city meeting at Mounds View City Hall. Mounds View Mayor Joe Flaherty mentioned the name change as a general topic of discussion. Councilmember Carol Mueller said city businesses would be “very happy” to get involved with a committee process. Spring Lake Park Councilmember Barbara Carlson said the current name was confusing for motorists. “Just to get the numeric 10 designation off it would be major,” said Blaine Mayor Tom Ryan. It would be nice to have a continuous name all the way through.” Blaine Councilmember Katherine Kolb suggested putting two or three citizens from each community on a committee. “Coon Rapids has to be on it,” she said. Coon Rapids Mayor Tim Howe stated in an e-mail the issue has been discussed. “I don’t feel renaming the [County Road 10] section in Coon Rapids would be appropriate for us, [but] certainly we would be opening to listening to ideas.” Mounds View City Administrator Jim Ericson said the issue surfaced 10 years ago. That’s when the when new Highway 10 opened to traffic in the north metro. “People coming north or south on Interstate 35W get confused when they see two exits with a 10 in the designation,” Ericson said. “It’s a case of old 10, new 10, white 10, blue 10,” he said, referring to a mix of signs that confront motorists. Doug Fischer, Anoka County’s highway engineer, said last week name designations for county roads are a community’s choice. For example, County Road 14 in Anoka, Coon Rapids and Lino Lakes is called Main Street. In Blaine, it’s called 125th Avenue, Fischer said. Blaine, Spring Lake Park and Mounds View could chart a similar path with their County Road 10 idea, he said. “However, the actual number is something the county does have authority over,” Fischer said. “We do number the roads.” According to Fischer, to change a road number just takes an Anoka County Board resolution to re- designate and renumber a county highway. That’s been done in the past for various roads. “Most recently, we renumbered County Road 10 [Birch Street in Lino Lakes] as County Road 34,” Fischer said. “We did that with a county board resolution. It’s still Birch Street, but it’s now County Road 34. “As far as the local street name, we leave that up to the cities, and the county really doesn’t weigh in at all.” Flaherty said the city of Mounds View would take the lead on getting a letter out to Blaine City Manager Clark Arneson and Spring Lake Park City Administrator Barbara Nelson regarding the formation of a committee to study a County Road 10 name change. “We need to ask Coon Rapids to come to the table,” Kolb said. Tim Hennagir is at tim.hennagir@ecm-inc.com Item No. 4. Meeting Date: June 4, 2012 Type of Business: Work Session City Administrator Review: ______ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Mark Beer, Finance Director Item Title/Subject: Discussion of Priorities for the 2013 Budget City staff has been busy working on the details of the 2013 budget. This item is placed on the agenda to give the City Council and residents the opportunity to provide input to staff early in the process. Department Heads can then use this guidance as they work on the details of their proposed budgets. Key 2013 Budget Issues: The Legislature has adjourned for 2012 passing a stadium and bonding bill. A minor tax bill was passed that limited LGA to cities to the 2012 amount or the formula amount whichever is less. In our case it is the 2012 amount of 232,078. The formula amount would have been 642,802. The current revenue projections show a one billion deficit for the next state biennium. (July 1, 2013 thru June 30, 2015) It has been the Council’s position to not budget for LGA so if there are further cuts it won’t be as painful. Inflation is moderate at present (2 ½ - 3%) and there is no state levy cap for 2013. The City’s charter cap is more restrictive and excludes debt service and capital project levies from inclusion in the cap calculation. A 1% levy increase would generate an additional $41,814 in tax revenue. General Fund 2012 Budget by Type Personnel 64.4%3,516,027 Contractual services 23.1%1,259,887 Capital outlays 0.6%31,090 Supplies 5.0%270,960 Transfers 4.5%245,000 Fire debt service 2.5%137,499 Contingency 0.0%- Total 100%5,460,463 General Fund 2012 Budget by Function Police 43.5%2,373,986 Public Works 12.8%701,262 Park and Recreation 8.6%469,826 Community Development 6.3%346,454 Fire 6.0%325,633 Administration 4.9%269,414 Finance 4.4%240,192 Central Services 4.0%218,251 Legislative 1.1%58,775 Debt Service 2.5%137,499 Contingency 0.0%- Misc. Contracual Service 1.4%74,171 Transfers to other funds 4.5%245,000 Total 100%5,460,463 The City has settled all three union contracts for 2013 and agreed to 1½ % cost of living wage increase. 13 employees will receive step or longevity increases in 2013. The 2012 budget provided 1½ % wage increase and the 2011 and 2010 budgets provided for no cost of living wage increase. Health insurance cost increases are not known, we will receive our rate notice in mid August. The impact to the budget will depend on the size of the rate increase. The City’s health insurance contribution increased $50 in 2012 to $917.33 per month and will be tiered in 2013 based on the percentage increase in premiums with a maximum increase of$32.67. The employer share of PERA will remain at 7.25% for Coordinated plan members and 14.4% for Police for 2013. PERA coordinated rates have increased from 5.53% in 2005 to 7.25% in 2012, police PERA rates have increased from 9.3% in 2005 to 14.4% in 2012. The payroll cost for 48 FT and 2 PT employees is $2,196 per hour, $17,568 per day, $87,840 per 40 hour week and $4,468,465 per year. County dispatch fees will increase $11,528 or 12.78% to $101,717. Fire department costs will most likely increase in 2013 depending on the cost sharing formula. Information technology costs will be flat for 2013. Fuel prices were budgeted at $4.00 for 2012, staff would recommend using $4.00 for 2013. Overall most revenues that are tied to economic activity will be flat. Investment income will remain flat in 2013 as a result of Federal Reserve activities and the threat of recession in 2013. The franchise fee rate is at 4.00%; the revenue generated from this fee will be dependent on commodity prices and economic activity in 2013. 2011 General Fund unassigned fund balance is $3,200,472 this represents 58.61% of 2012 budgeted expenditures and transfers. The General Fund also has Committed fund balance of $6,292,906, which was previously in the Levy Reduction Fund. It has been the Council’s policy to draw down these funds over time. One of the City’s goals is to develop a sustainable budget. The General Fund deficit will be in the $300,000 to $400,000 range this will be partially offset by the drawdown of the committed funds of $158,000. This will leave a deficit of between $142,000 - $242,000. Conclusion Staff is looking for direction from the Council on priorities for the budget and property tax levy. The above items are some of the issues that will drive the 2013 budget and are presented for your consideration. Respectfully Submitted, Mark Beer