HomeMy WebLinkAboutMinutes - 1999/05/10CITY OF MOUNDS VIEW
MEETING MINUTES
MONDAY, MAY 10,1999
7:02 P.M.
1. MEETING IS CALLED TO ORDER
APPROVED
2. ROLL CALL: Coughlin, Quick, Stigney, and Thomason.
NOT PRESENT: Marty.
Mayor Coughlin advised that for personal reasons he may be required to leave the meeting early
and would refer to Acting Mayor Stigney to chair the remainder of the meeting.
3. APPROVAL OF MINUTES
A. MONDAY, APRIL 26,1999 CITY COUNCIL MINUTES
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Council Member Stigney requested a correction to Page 12, first paragraph, to indicate "Mayor
Coughlin stated that he opposes laying this over since he does not believe ..." and the last
paragraph to indicate "Council Member Stigney stated his concern is that the problem has not
been defined, the justification for the new position has no basis of merit but it is hoped it will pay
for itself, there is..."
Council Member Stigney advised the unidentified speaker on Page 15 was Mr. David Jahnke.
Mayor Coughlin requested a correction to Page 9, third paragraph, to indicate "There being no
further comments, Mayor Coughlin closed the ..."
MOTION/SECOND: Stigney/Thomason. To accept the Apri126, 1999 City Council minutes as
corrected.
Ayes - 4. Nays - 0. Motion carried.
B. MONDAY, MAY 3,1999 CITY COUNCIL MEETING MINUTES
MOTION/SECOND: Stigney/Thomason. To accept the May 3, 1999 City Council minutes as
submitted.
Ayes - 4.
•
Nays - 0. Motion carried.
4. SPECIAL ORDER OF BUSINESS
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None.
5. REPORTS
Mayor Coughlin reported on his meeting with Senator Novak and representatives of MAC to
discuss various related issues including the legislation and ongoing litigation the City is presently
involved with in regard to the Anoka County Airport. He reported the meeting went well and
today he met with representatives from several communities involved in the Reliever Airport
Coalition and talked with the Governor's immediate staff about this legislation to clarify
questions and provide additional background information. Mayor Coughlin extended his
appreciation to Planning Commissioner Brian Kaden who took time off from work to help
represent the City at this meeting.
Mayor Coughlin reported he spoke to the Director of Public Works regarding the petition
received to widen Spring Lake Road. He stated he supports a motion to allow for widening of
Spring Lake Road from Hillview to County Road I to allow for a walking path of three feet on
one side of the lake. He explained that after further consultation with residents in that area and
the Public Works Director, it was thought to be justifiable to make this request before the
Council to amend their motion of the previous Council meeting.
MOTION/SECOND: Coughlin/Thomason. To authorize the Public Works Director to work with
Ramsey County to widen that portion of Spring Lake Road which has enough easement with the
• Public Works Director determining which side the walk should be on, retaining the preexisting
rolled asphalt curb to help guide runoff to swales, and authorize the Public Works Director to
also deal with the curbs to determine if they are necessary and, if so, to determine the correct
placement accordingly.
Council Member Stigney asked which side the trail would be located. Mayor Coughlin stated
that would be determined by the Public Works Director after consultation with residents. He
clarified it would be a walking shoulder.
Ayes - 4. Nays - 0. Motion carried.
Council Member Quick had no report.
Council Member Thomason had no report.
Council Member Stigney reported on the actions of the May 4, 1999 Planning Commission
meeting where the billboard issue was discussed and determined there were questions. He
explained the golf course is in a PF district which requires a MnDOT permit to erect billboards.
But; generally, MnDOT only approves permits if located in a commercial or industrial district.
So a Code amendment would be needed to obtain a permit from MnDOT. They directed staff to
contact MnDOT to determine what they would and would not approve.
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Council Member Stigney reported they also discussed the Transportation Component of the
Comprehensive Plan and the Highway 10 design theme.
City Administrator Whiting commented on the meetings mentioned by the Mayor.
City Attorney Long stated staff is waiting to find out whether their bill will come up in the House
tomorrow or Wednesday. He stated a meeting will be held tomorrow morning with the Speaker
and Majority Leader prior to consideration. City Attorney Long stated the meetings went well
but they have not received a firm indication from the Metropolitan Airport Commission (MAC)
regarding what their position will be.
6. CONSENT AGENDA
A. Approve Just and Correct Claims
B. Set Public Hearing Dates regarding proposed street assessment and
construction policies for June 14 and 28
C. Resolution 5336 Approving the Hiring of an Administrative Assistant
D. Resolution 5338 Acknowledging Receipt of CounciUStaff Retreat Report
E. Gasoline License for Gas n' Splash - 2525 Highway 10
F. Contractor Licenses for Approval
Mayor Coughlin asked the Council if anyone would like to remove items for discussion.
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Council Member Thomason requested removal of Item D, Resolution 5338.
MOTION/SECOND: Thomason/Quick. To approve the Consent Agenda for items A, B, C, E,
and F as listed above.
Ayes - 4. Nays - 0. Motion carried.
D. Resolution 5338 Acknowledging Receipt of CounciUStaff Retreat Report
Council Member Thomason explained that due to previous commitments she was unable to
attend the entire meeting and, thus, is not comfortable with voting on the entire goals. She noted
the bottom of the resolution last paragraph, omits the word "preliminary."
MOTION/SECOND: Coughlin/Stigney. To approve the Resolution 5338 as corrected to insert
the word "preliminary" in the last paragraph.
Council Member Stigney stated his acceptance with the understanding this information only
reflects what was generated at the meeting from the majority of those in attendance.
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Mayor Coughlin agreed it identifies a starting point and is not the final document, as indicated by
the word "preliminary."
Ayes - 2. Nays - 1. (Quick) Abstain - 1 (Thomason) Motion failed.
City Attorney Long explained that an abstention vote is the same as a nay vote.
MOTION/SECOND: Quick/Stigney. To reconsider the motion to approve the Resolution 5338
as corrected.
Ayes - 4. Nays - 0. Motion carried.
Vote on the motion to approve Resolution 5338 as corrected.
Ayes - 3 Nays - 0. Abstain - 1 (Thomason) Motion carried.
7. UNFINISHED BUSINESS
None.
8. RESIDENTS REQUESTS AND COMMENTS FROM THE FLOOR
• There were no other requests or comments from the floor.
9. COUNCIL BUSINESS
A. Second Reading and Adoption of Ordinance 629 an Ordinance Amending
Chapter 401 of the Mounds View Municipal Code Pertaining to the Planning
and Zoning Commission
Mayor Coughlin stated he received a call from Mr. Hartwig requesting an explanation. In
response, he read a portion of the staff report indicating: "The changes to the Bylaws were made
to be consistent with current procedures and practices and to be better able to respond to planning
cases in a timely manner. The changes in effect require the City to adopt an ordinance to amend
the municipal code concerning the types of meetings held by the Commission. The ordinance
amends the Code to redefine what constitutes a regular meeting and a special meeting, as well as
to remove language from the Code which was not internally consistent with the rest of the
Chapter concerning appointments and recommendations for the filling of commission vacancies"
Mayor Coughlin closed the regular meeting and opened the public hearing at 7:24 P.M. Hearing
no public comments, Mayor Coughlin closed the public hearing and reopened the regular
meeting at 7:24 P.M.
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MOTION/SECOND: Stigney/Thomason. To adopt Ordinance 629, an Ordinance Amending
Chapter 401 of the Mounds View Municipal Code Relating to the Planning and Zoning
• Commission of Mounds View, Special Planning Case SP-069-99.
Ayes - 3. Nays - 1 (Quick). Motion carried.
B. Presentation of the 1998 Audit Report
Steven Wischmann, Kern, DeWenter, Viere, Ltd. (KDV), presented the 1998 Audit Report. He
reviewed the cash and investment balances for 1998 being $11.2 million noting it is a reduction
of $1,755,000 from the previous year primarily in the investment area. Mr. Wischmann noted
the Debt Service Fund cash investment balance decreased by about $3.4 million as a result of
transfers and expenditures for the Community Center. Mr. Wischmann noted increases in the
General Fund by $18,000 and the Special Revenue Fund by $920,000 which resulted from the
repayment of a loan from the Special Projects Fund to the State Aid Capital Projects Fund. He
pointed out the property taxes and special assessments remained consistent in 1998 with the
delinquent property taxes being reduced from the previous year. Special assessments receivable
totaled $85,000 which is a relatively small balance and reflects very little change from the
previous year.
Mr. Wischmann noted the General Fund balance at the end of 1998 was $3,031,784 which is
$316,000 lower than the previous year, or 10 months of the 1998 General Fund expenditures but
. sufficient to run the City and fund smaller projects without bonding. He noted it is projected
there may be a strain on the General Fund balance over the next several years so rt may be lower
in preceding years. He then reviewed the General Fund revenues by source and expenditures for
various funds. He stated these expenditures were budgeted and resulted in being lower than
budgeted.
Mr. Wischmann reviewed the transfers out of and into the General Fund in 1998 versus 1997.
He noted the graph of General Fund expenditures as contained in the audit report stating they are
very consistent. Mr. Wischmann commented on the General Fund balance over the past ten
years, noting it is currently just over $300,000. He then presented a cash flow chart presenting
the General Fund income received is cyclical.
Finance Director Kessel advised that in 1998 the City received $150,000 in building permits
which is usually in the $40,000 to $50,000 range. Mr. Wischmann stated park dedication fees
were also increased from previous years.
Council Member Stigney inquired about information on the property and franchise tax revenues.
Finance Director Kessel noted the information can be found on Page 30.
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Council Member Stigney asked where information on the increase in Personnel Service and
Capital Outlay expenditures is delineated. Mr. Wischmann noted that detail is contained on
Pages 31 and 32 which also identifies prior year figures.
Mr. Wischmann noted the comments contained in the Management Report on the Tax Increment
Financing (TIF) Debt Service Funds. He stated that due to the large transfer for the Community
Center, the fund balance decreased by $3.1 million. As of December 1998, the fund balance was
$2.2 million. The debt to be serviced at the end of 1998 is $6,675,000 payable through the year
2005. Capital Project Funds (Community Center) contains no fund balance since a transfer is
made from the Debt Service Fund to cover those expenses. He noted the $704,000 deficit in the
MSA fund which was covered by a transfer.
Mr. Wischmann analyzed the Enterprise Funds which are designed to be self-sufficient. He
presented the operating revenue and expenses for the Water Fund, Other Revenue (interest
income), and Expenses. He commented that adequate revenues are being generated to cover the
debt and bonds.
Mr. Wischmann stated the Sewer Fund had consistent operations in 1998 with operating
revenues up so it appears the rate structure is properly functioning.
Mr. Wischmann reviewed the Golf Course Operating Revenues and significant expenses which
included legal costs to address the litigation, noting if they were not included in 1998 there
would have been a $109,000 operating income and, in 1997, a $86,000 operating income without
legal expenses. He stated they expect a mce turnaround m this fund in 1999 since most of the
legal expenses will be eliminated.
Council Member Stigney asked if bond payments are included. Mr. Wischmann stated the
numbers would not include the interest expense on the bonds so that would have to be subtracted
to arrive at an income figure. He stated the operating income without the legal expenses should
offset the debt.
Mr. Wischmann reviewed the tax rates which have been very consistent and indicated it is a
"middle-of--the-road" tax rate when compared to other cities. He stated he has information on tax
data and tax capacity which is available for anyone interested.
Council Member Stigney inquired regarding the TIF districts which are generating funds that do
not go into the General Fund and asked if the tax capacity information includes those funds.
Finance Director Kessel stated it excludes the TIF.
Mr. Wischmann concluded his review of the Management Report by commenting on the lack of
segregation of accounting duties. He explained that in an ideal world, the City would have more
people doing various tasks to completely segregate all duties. But they realize the City's
resources are limited and they do not want to hire more employees to delegate those tasks to. He
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stated the City is accomplishing what they need to do with the staff that is available, they
understand this, and took it into consideration in their management letter. Mr. Wischmann stated
they are not recommending any changes but this is a required aspect they are required to report.
Mr. Wischmann reviewed the TIF information and list of items which the City should have on
file to document allowable costs for the TIF districts in the event of an audit. He noted this issue
had been discussed in 1997 and commented on the importance of having that information.
Mr. Wischmann commented on collateralization of deposits and explained it is common for the
bank holding the dollars to not fully collateralize the excess of FDIC insurance. He advised that
at the end of the year these dollars were under collateralized by $206,000. Mr. Wischmann
explained that in order to resolve that situation, funds were transferred into the 4M Fund which
gained compliance with applicable Statutes.
Mr. Wischmann noted the policies and procedures, and the issue discussed relating to cellular
and long distance telephone policies (personal use versus City use). He stated there is no easy
way to "police" these expenses but they are recommending a policy to disallow the use of these
services for personal use.
Mr. Wischmann reviewed the CAFR report which they prepared and contains their unqualified
opinion which is the highest opinion that can be received. He reviewed the information
contained in this report and encouraged the Council to review the details and ask questions. Mr.
• Wischmann stated this is a good report, the City is in fine financial condition, and City
Admm~stration is functioning m an acceptable manner.
Mayor Coughlin thanked Mr. Wischmann and his associates for their presentation and work with
the City on the 1998 Audit Report.
MOTION/SECOND: Coughlin/Thomason. To accept the 1998 Audit Report as presented.
Ayes - 4. Nays - 0. Motion carried.
C. Resolution 5337 Setting 2000 Budget Schedule
City Administrator Whiting explained the resolution sets forth a schedule they will attempt to
follow to consider and approve the Year 2000 budget and levy. He advised it was based on the
1998 schedule and developed to have departments work on their budget issues in June,
preliminary levy adoptable before September 15, 1999, and final levy to be adopted in
December.
City Administrator Whiting noted a correction needed in the proposed resolution to identify that
December 13 should be indicated for final Year 2000 Levy and General Fund Budget adoption.
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MOTION/SECOND: Stigney/Thomason. To adopt Resolution 5337, A Resolution Establishing
a Tentative Timetable for Preparing and Adoption the 2000 Budget and Long Term Financial
• Plan as amended and subject to verification of the dates.
Ayes - 4. Nays - 0. Motion carried.
D. Resolution 5339 Accepting the public improvements at the theater project
Community Development Director Jopke explained that as apart of the development agreement
with the theater, the public improvements on the site must be approved by the City. He noted
staff's memorandum outlines the status of those public improvements and some options for the
City to consider. The Development Agreement indicates the improvements need to be inspected
prior to accepting them.
Community Development Director Jopke stated staff recommends accepting the public
improvements subject to the eleven contingencies as detailed in the proposed resolution. He
stated the developer has been made aware of these issues, is diligently working to address them,
and expects to have them completed by the end of the week.
Mayor Coughlin asked about the five minor violations with MPCA which need to be corrected
for the inspection on May 15, 1999. Community Development Director Jopke stated the MPCA
inspected last week and listed those violations in an inspection report which was provided to the
. developer with indication they must be completed prior to Thursday of this week. The developer
indicated they would be corrected.
Mayor Coughlin asked if it has been verified with the DNR that the improvements do not fall
below the elevation identified. Community Development Director Jopke stated that will be
verified this week.
Mayor Coughlin asked if the Rice Creek Watershed inspection will be made within ten days of
project completion. Community Development Director Jopke stated he contacted the Rice Creek
Watershed District who indicated they hold a surety on this project and will do the inspection
when the developer requests release of that surety.
Mayor Coughlin asked if it has been verified that ingress and egress on Highway 10 will be
completed prior to opening. Community Development Director Jopke stated it is in place as of
today.
Mayor Coughlin asked if the City has a receipt of electrical inspection, Ramsey County health
inspection, and final fire code approval from the Fire Chief. Community Development Director
Jopke stated that will be part of the Certificate of Occupancy process.
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Mayor Coughlin inquired regarding receipt of funds for the Highway 10 improvement.
Community Development Director Jopke advised the developer has indicated that will be paid
• when intersection improvements are completed.
Council Member Thomason requested a five minute recess at 8:07 P.M. during which time
Mayor Coughlin excused himself from the meeting. The remainder of the meeting was chaired
by Acting Mayor Stigney who reconvened the meeting at 8:16 P.M.
Council Member Thomason noted the Development Agreement requires furnishing a
maintenance bond and asked if it has been furnished. Community Development Director Jopke
stated it has not been received which is addressed by Condition #8.
Council Member Thomason asked if a ten foot wide natural buffer easement next to the wetland
was provided. Community Development Director Jopke stated it is part of stabilizing the banks
of the pond and has been provided.
Council Member Thomason noted the requirement for a retaining wall in the back of the building
to prevent debris from entering the pond. Community Development Director Jopke advised they
were able to adjust the grade so a retaining wall was not necessary. Council Member Thomason
asked if that serves the purpose of keeping debris or persons out of the pond area.
Council Member Thomason noted the site maintenance agreement needs to be executed and
• recorded and asked if that has been completed. Community Development Director Jopke stated
the developer has been made aware of that requirement and indicate it will be provided.
Council Member Thomason asked if the cross access and parking easements have been filed.
Community Development Director Jopke stated they have been signed, reviewed by the City
Attorney's office, and filed but the City has not received the final documentation.
Council Member Thomason asked about the seven issues considered by the City Forester and if
they have been resolved. Community Development Director Jopke stated progress has been
made on a number of those items, additional landscaping has been installed, the sidewalk
repaired, and the developer has been made aware of the issue of visibility on the corner. They
are concerned about the sensitivity of removing landscaping from the buffer area and asked the
City Forester to identify what should be removed to which they will comply. Community
Development Director Jopke reviewed the additional landscaping issues that will be resolved
including removal of a dead tree after August 1st.
Council Member Thomason noted the lighting specifications and stated she noticed the lenses do
exceed below the housing but the PUD indicates they shouldn't. She stated the area is quite
brightly lit and requested the light levels be verified. Community Development Director Jopke
stated staff will ask the developer to verify the light levels.
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Council Member Thomason stated she would be hesitant to approve a resolution unless all of the
unresolved and outstanding issues are identified in the resolution. She stated Code requirements
•
Wendell Smith, representing Anthony Properties and Carmike Cinemas, stated the resolution is
basically accepting the public improvements and the items contained on the resolution address
the issues of public improvements. He stated it has been his experience that many of the items
mentioned by the Mayor and Council Member Thomason are addressed during the inspections
for the Certificate of Occupancy permit. He requested the Council leave the resolution as drafted
as it relates to public improvements with the additional issues being related to the Certificate of
Occupancy. Mr. Smith stated they have no problem with any of the items detailed in the
resolution and met with staff today to discuss each item. He stated the management letter was
sent to the City and they have verified the water gate valves are operational, the turf around the
pond and landscaping will be completed shortly, and everything will be cleaned up. With regard
to removal of non-oak vegetation, Mr. Smith agreed it is a safety problem but they understand
the need for a buffer zone so they only want to remove what the City Forester wants removed. He
stated the maintenance agreement will be provided to the City and anything uncompleted will be
covered by placing a deposit or escrow.
have also not been met as of today so she would be hesitant to support approval as of today.
Council Member Thomason suggested the items she and the Mayor raised tonight be included in
the resolution and the Council consider a conditional approval contingent on the Community
Development Director researching all of these issues to assure they are properly addressed before
a final sign-off. Then a bond or escrow could be held on items that cannot be resolved until later,
such as the tree removal.
Mr. Smith stated they have no problem with paying one-half now and one-half upon completion.
He stated the City is always skeptical whether they will follow through with issues but they
believe they have followed through with all requests of the City. However, they would like to
retain one-half of the amount to assure completion of the intersection and traffic light
installation. Mr. Smith again asked the Council to consider the resolution as drafted with the
other issues being addressed with the Certificate of Occupancy.
Mr. Smith advised they plan to open May 17 with the Star Wars movie and believe everything
will be ready.
Acting Mayor Stigney asked about Mr. Smith's request to separate issues between the resolution
to accept utilities and the Certificate of Occupancy.
Community Development Director Jopke explained the resolution was aimed at the items
relating to the public improvement. The other items mentioned can be addressed as part of the
Certificate of Occupancy, however, the City Attorney may wish to respond.
City Attorney Long stated he was unclear as to the items Mr. Smith was talking about but
typically, there are two sets of inspections; the inspection for issuance of the Certificate of
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Occupancy and related fire and building code inspections, and another inspection for the set of
issues related to the public utilities improvements. He clarified that approval of the Certificate of
• Occupancy inspection allows the building to be used even if the public utilities have not been
accepted by the City. He stated he has not seen the second list of issues being addressed but the
Council could compile a list of issues with the indication that the public utilities would not be
accepted until the issues are resolved. A second list could be identified that should be tied to the
Certificate of Occupancy process.
City Attorney Long noted the issues identified in the resolution are from the development
agreement and not Certificate of Occupancy items. He restated there are two separate stages, a
Certificate of Occupancy inspection and acceptance of the public improvements. He stated the
Council could lay over the resolution being considered tonight which would not prevent the
building from occupancy as long as the Certificate of Occupancy inspection is approved and
Certificate of Occupancy issued.
City Attorney Long stated Section 24 of the PUD requires a site improvement agreement to be
signed and that was done. The Development Agreement also contains issues which need to be
met or a bond posted until they are met.
Council Member Thomason stated she would be comfortable if the issues only related to the
public utilities but, since there is an outstanding MPCA violation, she would be remiss to
- consider approval since a higher agency prevails. She stated she would add that issue to the list;
to require satisfactory sign off by the MPCA that there are no outstanding violations.
Mr. Smith stated he is hearing that the Council wants to be sure aII issues that need correction are
corrected. He stated they are ahead of schedule and since there are some concerns the resolution
could be tabled tonight to assure the Council's concerns are addressed. He noted they could still
proceed with the Certificate of Occupancy process during which time most of the issues
contained in the resolution will be resolved.
Community Development Director Jopke stated the Certificate of Occupancy issues have been
separated from the public improvement issues and the Certificate of Occupancy will be issued
only when the Code Inspector is satisfied.
City Attorney Long explained the resolution items are different from the Certificate of
Occupancy and PUD issues. The City has an obligation to inspect the building according to the
Building Code and if it is approved there is no process to consider denial. The public utility
issues can be considered and if not addressed a bond can be required. He noted a performance
bond for 150% of the cost should have been posted prior to the time construction began. He
stated if that has not been posted, it needs to be posted now.
Acting Mayor Stigney asked when the bond will be posted. Community Development Director
Jopke stated the Development Agreement requires that it be provided up front but it was not
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provided. He explained Mr. Smith is suggesting the uncompleted items be identified at this point
and they will post a bond for 150% of the cost at this time.
MOTION/SECOND: Thomason/Stigney. To table consideration of Resolution 5339, a
Resolution Accepting the public improvements at the theater project to the Council meeting of
May 24, 1999 to allow staff to verify the List of uncompleted items and contingencies identified.
Ayes - 3. Nays - 0. Motion carried.
10. Next Council Work Session: Monday, June 7,1999 at 6:00 PM
Next Council Meeting: Monday, May 24,1999 at 7:00 PM
No action required.
11. Adjournment
Acting Mayor Stigney adjourned the meeting at 8:48 P.M.
Transcribed and recorded by:
Carla Wirth
Timesaver Off Site Secretarial, Inc.
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