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HomeMy WebLinkAboutMinutes - 1992/10/13P~i~g~ • CITY OF MOUNDS VIEW CITY COUNCIL TUESDAY, OCTOBER 13, 1992 7:00 P.M. AGENDA C. The City Council is provided background information for agenda items in advance by staff and appointed commissions, committees and boards. Decisions are based on this information, as well as City policy and practices, input from constituents and a Councilmember's personal judgement. If you have comments, questions or information regarding an item on the agenda, please step forward to be recognized by the Mayor during the "Residents Requests and Comments From the Floor" item on the agenda. Please state your name and address for the record. AZZ comments are appreciated. A copy of all printed materials relating to the agenda item is available for public inspection at the Recording Secretary's Table. 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL - 4. APPROVAL OF MINUTES: Linke Wuori Quick Rickaby Blanchard September 28, 1992 Regular Meeting COUNCIL ACTION: A T D October 6, 1992 Special Meeting COUNCIL ACTION: A T D • AGENDA PAGE THREE OCTOBER 13, 1992 E. Adopt Resolution No. 4287 Ratifying the Appointment of Election Judges for the General~Municipal Election, Staff Report No. 92-401C F. Approval of Position Classifications, Staff Report. No. 92-402C G. Licenses for Approval Asphalt - Expires 6/30193 Bituminous Consulting and Contracting, Co., Inc. - New Signs - Expires 6/30/93 Schad-Tracy Signs, Inc. - New Sign Art Company, Inc. - Renewal Universal Sign Company - Renewal Heating, and Air Conditioningx - Expires 6/303 Steve's Heating Service, Inc. - New Wenzel Heating and Air Conditioning - Renewal COUNCIL ACTION: A T D Comments 9. COUNCIL BUSINESS: A. Consideration of Resolution No. 4290 Approving/Denying the Sign Area Variance Request by Paster Enterprises for the Property Located at 2577 Highway 10, Planning Case No. 350-92, Staff Report No. 92-403C COUNCIL ACTION: A T D Comments: • AGENDA PAGE FIVE OCTOBER 13, 1992 . 2.' Report of Mayor Linke 3. Report of Administrator 4. Report of Staff 5. Report of Attorney 11. ADJOURNMENT• NE%T COIINCIL WORK SESSION: NOVEMBER 2, 1992 NEST COIINCIL MEETING: OCTOBER 26, 1992 • f • 1 PROCEEDINGS OF THE CITY COUNCIL CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA CALL TO ORDER Regular Meeting October 13, 1992 Mounds View City Hall 2401 Hwy. 10, Mounds View, MN 55112 ~he Mounds View City Council was called to order by Mayor Linke at 7:00 p.m. n Tuesday, October 13, 1992. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was said. ROLL CALL MEMBERS PRESENT: Councilmembers Wuori, Rickaby, Quick, Blanchard and Mayor Linke. MEMBERS ABSENT: None ALSO PRESENT: Samantha Orduno, City Administrator, Paul Harrington, City Planner, Don Brager, Finance Director, Ric Minetor, Director of Public Works/City Engineer APPROVAL OF MINUTES: MOTION/SECOND: Quick/Blanchard to approve September 28, 1992 minutes as presented. VOTE: 5 ayes 0 nays Motion Carried • Mounds View City Council Page Two ~gular Meeting October 13, 1992 MOTION/SECOND: Rickaby/Wuori to approve October 6, 2992 minutes as amended. Councilmember Wuori stated that on the first motion Quick made the motion and Wuori seconded it. VOTE: 5 ayes 0 nays Motion Carried SPECIAL ORDER OF BUSINESS: a. Mayor Linke introduced and read Resolution No. 4293 Commending Bill Hanggi and Steve Dazenski for Their Ingenuity and Efforts in Developing a Fire Hydrant Repair Device MOTION/SECOND: Linke/Quick to adopt Resolution No. 4293 Commending Bill Hanggi and Steve Dazenski for Their Ingenuity and Efforts in Developing a Fire Hydrant Repair Device VOTE: 5 ayes 0 nays Motion Carried Mayor Linke presented Bill Hanggi and Steve Dazenski with Certificates of Appreciation and a Gift Certificate for their efforts. Mayor Linke thanked Mr. Hanggi and Mr. Dazenski and stated that this is an example of the fine ,employees the City of Mounds View employs. There were no residents requests or comments. PUBLIC HEARINGS No public hearings had been scheduled for this meeting. CONSENT AGENDA Samantha Orduno, City Administrator, read the Consent Agenda. Mayor Linke asked if there were any items the Council desired removed. Councilmember Rickaby requested that Item F. be removed from the Consent Agenda. MOTION/SECOND: Wuori/Blanchard to adopt the Consent Agenda minus Item F. VOTE: 5 ayes 0 nays Motion Carried Item F. Approval of Position Classifications was brought up for consideration. Councilmember Rickaby stated that the position reclassifications had been discussed at the last Work Session and it was her anion that they needed more clarification and should be discussed in -~ublic. Mounds View City Council \egular Meeting Page Three October 13, 1992 Councilmember Rickaby asked what the duties of the maintenance receptionist were because arguments were made at the Work Session for reclassification of this position was that the duties were greater than those of the City Hall receptionist. Ric Minetor, Director of Public Works/City Engineer, stated that the duties of the maintenance receptionist were: phones, scheduling work for the Public Works workers, schedule final readings, computer entry including accounts payable, work accomplished reports, fuel usage and other various reports, all secretarial work and correspondence including filing. Samantha Orduno, City Administrator, reviewed the duties of City Hall Receptionist as being: accepting and transferring of phone calls, very minimal work with animal licensing, no typing or secretarial duties as far as correspondence, and relaying information to staff members. Minetor stated that the maintenance receptionist position is actually more like a division secretary's position. Orduno explained that there are criteria that have to be met in order to reclassify a position. The positions, when compared, have to have similar duties, tasks and responsibilities in order to be reclassified to comparable positions. Inotherwords, if they walk like a duck, they should e called a duck. inetor explained that the present Public Works Foreman position is more like a supervisor's position because he supervises many classes of people. This position is responsible for supervising personnel in streets, water department, sewer department, and the division secretary. This position also works on a maintenance budget and sets maintenance project schedules. The Public Works Foreman supervises the maintenance division and is given main guidelines from the Director of Public Works/City Engineer. The Public Works Foreman position is comparable to a Maintenance Supervisor in the Stanton schedule. Councilmember Rickaby asked Minetor what positions he supervised. Minetor responded: supervises personnel in the Planning Department, the Building Inspector and the Building Department Secretary. Councilmember Rickaby stated that maybe the engineer. This was discussed some time ago argument was that this position would be toy many other people would have to be hired to stated that if the Public Works Foreman was perhaps the City should look at turning the half time position and not having this type supervisor is supervising a supervisor. City didn't need a full time and Rickaby stated that the ~ difficult to replace as too replace this position. Rickaby doing supervisory work now, that City Engineer's position into a of bureaucracy where a chard Oman, 8205 Groveland Road, offered that when services expand ~ersonnel shouldn't be expanded to create a bureaucracy. Mounds View City Council Page Four regular Meeting _ __ _ _ -- - -_ October 13, 1992 Oman suggested that the City should look for ways to streamline various duties in order to maintain a smaller municipal government. Mayor Linke responded that the City has looked into streamlining various duties and not expanded personnel. Mayor Linke compared the City of Mounds View and its number of employees to those communities in the Metro area with the same or smaller square miles and have more employees than Mounds View. Linke further offered that of the 39 full time employed by Mounds View, 15 of these employees are police. The City has not expanded its number of employees. The only increase of personnel will be to add a police officer and if the City doesn't hire one it will put at risk the health, safety and welfare of the residents of the community. Orduno stated that the criteria used for reclassification of a position are: 1) have the duties and responsibilities of the position substantially changed in terms of degree of complexity and scope of diversity or, 2) are the duties and responsibilities of the position consistent with the complexity, diversity and accountability of a higher ranked position. There was one position that requested reclassification that did not meet the criteria and was not reclassified. Richard Oman asked that the reclassifications change the pay scales and are these change in pay scales budget for? ~rduno stated that in the past cities could pull pay scales out of the air. In the past there was no basis for pay equity. Two categories are considered when considering pay scales -- the market value and the internal comparison. This is state law. These categories impact how people will be paid. Councilmember Rickaby stated that when the Maintenance Secretary was hired a year ago the argument was made that some of her duties were being performed by the Public Works Foreman and other Public Works employees. The statement was made that it would be better to hire a lower paid person and let the Public Works employees do other work that needed to be done. Part then of the reclassification of the Public Works Foreman's position is that he then, by hiring the Maintenance Secretary, had one more class to supervise. Orduno stated that reclassifications are not based on who supervises who and how many one supervises. The reclassification has to do with the complexity, scope of diversity and accountability of a higher ranked position. If a person is kept in a position that does not clearly not reflect what they actually do, a person could appeal this to the Human Rights Department if the work performed did not meet their job or position description. Councilmember Wuori stated that the word bureaucracy had been used a lot to describe government. ds View City Council lar Meeting Page Five October 13, 1992 Wuori further stated that the intent is not to hire new people when promoting the others. The City has no intent of hiring a new foreman to take the place of newly promoted public works supervisor. The City of Mounds View has a small streamlined City government. The City has many talented employees with varying abilities to do all of their work and take on responsibilities of other positions. This staff is a "lean mean fighting machine." Roger Stigney, 8400 Eastwood, stated he was not opposed to the reclassification of the positions. Stigney stated that this state is in a severe recession, people have lost jobs, and people have taken cuts in their positions. The City must run a very tight ship and perhaps some cuts can be made. The City is paying $250,000 to pay the top five salaries in the City. Perhaps the City doesn't need a full time public works director. Before taxpayers money is raised to pay salaries, the City should look at consolidation. Mayor Linke stated as he had said before, the City looks at every position. Linke asked Mr. Stigney, a candidate for a Council position, why he hasn't attended the budget meetings. and suggested that he would understand the budget process better if he did. Linke stated that then Mr. Stigney would have something to base his facts on. Linke stated that the City hires excellent people. Linke stated if the City would pay $2.95 for an employee, he City would get an employee capable of doing $2.95 work. The City has to ~ay what the job is worth. A person running for Council should be in attendance at the meetings more than twice a year to understand the process for budgeting instead of making comments. Stigney replied that this is the Stigney stated that nothing has office. Stigney stated that he including the budget hearings. task force to reduce City funds budget. If needed, he is still second time he has run for City Council. changed since the last time he ran for City had been in attendance at several meetings Stigney stated that he volunteered to form a and show the City how to streamline the available to do this. Mayor Linke stated that the present Council from 1991 to 1992 was able to reduce the budget by 1.5% Stigney stated that the top five salaries cost the City $250,000 increasing every year. Council is not addressing the problems of the City. Orduno stated that out of the top five salaries, three of the five are below the Stanton mean, 80-90% below the Stanton mean. Orduno also stated that two other items are also considered when setting pay scales - Unions and Pay Equity. Orduno stated that she is in the top five salaries and her contract calls for her to receive an increase when other employees receive an increase. Orduno stated that her salary alone, based on pay equity, is far below the ~edicted pay. Orduno stated that she did not take an increase nor did she Lorce the issue. Mounds View City Council ~gular Meeting Sharon Croon, Eastwood Road, and that job classifications managers where she is employ the City of Mounds View take Page Six - - - October 13, 1992 stated that she works at a large corporation are not worth a hill of beans. The Corporate ed are taking pay cuts. Why can't employees of pay cuts? Orduno stated that Sears is not under state law. None of the private sector business are under the state pay equity law. Orduno explained the pay equity law. Orduno stated that with regards to Unions in terms of negotiations an arbitrator for police or fire would not uphold a 0~ increase. There is a different perspective in the public sector vs. the private sector. Croon stated that the City should start at the top and work down as far as pay cuts. Have the cuts be across the board and deal with pay equity law. It has to be started someplace. Other people in the community are taking pay cuts and losing jobs. Bill Frits, 8072 Long Lake Road, wanted to know if a job description is the same thing as a position classification. Orduno stated that it is a title for certain duties. ~yor Linke explained that the work that these people are doing does not fit e job that they are doing. Bill Frits asked how many unions the City has. Frits stated that his belief is the City has one Union and one decertified bargaining unit which has no force in law. Frits further stated that he doesn't support non-union workers getting union wages. These people can be cut. Comparable worth is comparable throughout the City. Frits stated if you cut one cut them aII including yourself. Rickaby stated that the Planning Technician was reclassified to City Planner. Rickaby asked the reclassification compares with City Planners in the past? Orduno explained that job duties have changed. The level of accountability and investigation issues has grown. Paul works with the City Attorney regarding development agreements. Orduno stated that Paul is far superior to the other City Planners that the City has employed. Orduno stated that many things fell through the cracks. Paul's expertise is such that he has been involved in tax increment and development agreements since he began employment with the City. Paul is doing duties far beyond those of a Planning Technician. Paul is also primary liaison to the Planning Commission. Planning Technicians do not do this job nor do they get involved with TIF or development agreements. Planning Technicians that have been with the City in the past have not been involved to the degree that Paul has. r~ Mounds View City Council Page Seven ~gular Meeting October 13, 1992 Councilmember Rickaby stated that during the Council discussions regarding the hiring of this position, it was stated that the City wasn't going to need as much planning experience because the City's planning was nearly completed and that is why the Gity was hiring a Planning Technician. The City went to a lower level position and then that person gets put into a higher level classification and receives higher pay which defeats the hiring of a Planning Technician. Rickaby stated that she has no argument that he does a wonderful job and she is not arguing against his reclassification. Mayor Linke stated that Paul was hired and he grew into the reclassified position and that tells the City that it did a good job of hiring and that the City could watch him grow into a higher position. Ric Minetor, Director of Public Works/City Engineer, stated that the City has to look at the past. In the past the City tried to go with a Planning Technician and it hasn't worked. Paul has gone beyond what the position called for. The City benefitted from a tight job marked. Paul cannot be cut back to Planning Technician. The City's has benefitted from Paul's experience. Paul has done the job and gone beyond Planning Technician. Nearly every City has a Planning Technician and a City Planner. MOTION/SECOND: Quick/Rickaby to Approve Position Classifications VOTE: 5 ayes 0 nays Motion Carried COUNCIL BUSINESS: A. Paul Harrington, City Planner, reviewed Staff Report No. 92-403 regarding approving/denying the Sign Area Variance Request by Paster Enterprises for the Property Located at 2577 Highway 10. Harrington stated that Paster Enterprises, representing Budget Liquor, has made application for a variance to allow for signage in excess of City allowed size requirements at 2577 Highway 10 (Mounds View Square). The Mounds View Planning Commission at a special October 1, 1992 meeting, reviewed and denied the request as proposed. The applicant is now exercising his right of appeal of that decision to the City Council as allowed by the Municipal Code. Paul Harrington then introduced Jim Everson, representative from Paster Enterprises, to go over the request. Mayor Linke stated that the Mounds View code allows for up to 100 square feet of sign area per business occupant in the form of a wall sign. The applicant has proposed two signs each approximately 185 square feet in area to be located on the south and west sides of the building. The plans indicate that both signs will be illuminated. John Streeter, Paster Enterprises stated that the Budget Liquor sign would have 42" letters instead of 36" letters as in the past. Mounds View City Council ---- Page Eight ~gular Meeting ~ October 13, 1992 Councilmember Blanchard stated that the Planning Commission had gone over this request and turned it down because it is not in conformance with the City Code. Councilmember Rickaby stated that from the City's perspective perhaps the appearance of the shopping center is more important than the size of the signage. If all of the tenants are in agreement and more shoppers would be attracted to the center, the signage should not be the City's concern. Rickaby stated that the Code should be adjusted if sign size is too much of a barrier for allowing signage that would bring adequate business to the shopping center. Mayor Linke stated his concurrence with Councilmember Rickaby. Councilmember Blanchard stated that the Planning Commission was concerned because they are to interpret the Code as written. Blanchard stated that until the Code is changed the signage shouldn't be allowed. Councilmember Wuori stated that if the City wants the business community to bring business into the City it needs to have the same type of image as other shopping centers and perhaps it is time to update the sign code. Wuori stated some concern with the wrap around illuminated sign on the west side because the homeowners on that side will have to deal with more light. Councilmember Blanchard moved to den the si n area variance re est b Y 9 ~ Y Paster Enterprises for the property located at 2577 Highway 10 Motion failed due to lack of a second. MOTION/SECOND: Rickaby/Wuori to approve Resolution No. 4290 Approving the Sign Area Variance Request by Paster Enterprises for the Property Located at 2577 Highway 10 VOTE: 4 ayes 1 nay Motion Carried B. MOTION/SECOND: Rickaby/Linke to approve Resolution No. 4292 Approving the Sign Area Variance Request by Paster Enterprises for the Property Located at 2541 Highway 10 - VOTE• 4 ayes 1 nay Motion Carried C. Samantha Orduno, City Administrator, reviewed the gas and electric franchise agreements by stating that the two franchise agreements are basically very similar to the existing franchise agreements but allow the City more control in regards to performance stipulations both for the City and NSP in regards to the use of public ground, relocation of facilities and required permit procedures. Both agreements provide for Mounds View City Council .egular Meeting Both agreements provide for gross operating revenues of fees to the City as opposed provision of the current fr. Page Nine October 13, 1992 a franchise fee of no more than 4~ on the NSP and a monthly payment schedule of the to annual payments after one year as the 3nchise. Mayor Linke stated that the agreements are basically the same as in the past with the exception of the payment schedule and the improved control over work being done in the City by NSP. Orduno stated that there is a blank on page 6 of the gas and electric franchise agreements that should be filled in with 4$ on both documents. Judy Trude, 8391 Knollwood Drive, stated her objection to having the 4~ fee in the agreement at all and wanted it removed from the agreement. Trude asked how much revenue would be raised with the franchise fee? Mayor Linke explained that the franchise fee, if implemented, would raise $277,000. Linke stated that an 8.3~ raise in property taxes would only raise $155,000. Property taxes would have to increase by 22$ to raise the $277,000. Trude stated that 4~ would raise $277,000. The City only needs $155,000 to balance the budget. Is it the intention of the Council to pass the agreement with the maximum fee? This would raise $125,000 more than the City needs to balance the budget at 4~. Trude asked the Council what was heard from the people at the public hearing on this subject. Mayor Linke responded that the main speakers at the public hearing were from the business community and it was favored to increase the property taxes rather than implement the franchise fee. Councilmember Rickaby stated that the residents were in attendance one year ago and were against the franchise fee. Trude stated that the franchise fee is an inequitable tax and that everyone is not affected the same -- some will pay more, some ,less. Trude suggested that the Council vote on the agreements minus the franchise fee. Property taxes would be lower than the franchise fee. Councilmember Rickaby stated that was an excellent idea, leave the 4$ out and it can be voted in anytime in the future. Duane McCarty, 8060 Long Lake Road, stated that this franchise fee is a revenue source for the 1993 budget. McCarty asked, if the Council does not intend to adopt Ordinances 517 and 518, what purpose does Ordinance 519 serve. Mounds View City Council ~egular Meeting Page Ten _ October 13, 1992 Mayor Linke stated that it is an option and that staff was asked to prepare the ordinance to include the entire package. McCarty stated to not adopt Ordinance 519 with the franchise fee agreements would be a moot point. McCarty stated that he has not had a flood of phone calls relating to the gas and electric franchise agreements. McCarty stated that the franchise agreements and implementation of the franchise fee should have been a part of the budget process and discussed at the hearing. McCarty suggested that the Council table this item and make it a part of the budget process in the future. Charlie Hall, Mermaid, stated that the business community feels that the 4$ fee should not be added and it should be deleted from the agreement. Richard Oman, stated that he does not object to the franchise, but is in opposition to the fee because it is an inefficient way to collect revenues and it adds on a new layer of administration costs. Mr.~Oman stated that the residents should not pay NSP to administer paperwork. Mayor Linke explained that NSP cannot charge the City any administrative costs for collecting the fee. State law doesn't allow for that. Richard Oman stated that the residents will also pay 6.5~ sales tax on a revenue source for the City. If taxes are raised it increases the property taxes but adds nothing new to the bill. Steve Lauterbach, 8285 Knollwood Drive, stated that he is opposed to the franchise fee. Property taxes should be increased. Residents will pay less with the franchise fee but businesses will pay more as well as the churches and schools. The franchise fee should be removed from the agreement. Russ Young, 3032 County Road I, stated that NSP when they were to cut trees on his land asked but the City demanded the trees be cut or the City would cut them down. Mayor Linke stated that he did not understand the problem with the trees. Orduno stated that Mr. Young should contact the City tomorrow and she would be ,glad to research the problem surrounding the cutting of the trees. Mayor Linke stated that NSP doesn't have to inform the City when they are working in the City. Ruth White, 2917 County Road I, stated that in her opinion the franchise .fee is a sneaky way to raise taxes. This franchise Mounds View City Council Page Eleven ~gular Meeting - October 13, 1992 fee would be very hard on senior citizens. If the property taxes are increased there is a circuit breaker that aids residents in getting some of the money back. White suggested the franchise fee be eliminated from the franchise agreement. Terry Wiley, 2279 Oakwood Drive, stated that contrary to the other 25 people in the room he thinks that the residents have to pay for services received from the City. The City needs a certain number of dollars to run the City. The funds have to come from somewhere. Wiley suggested leaving all options open. If the City does not leave all options open regarding the franchise fee and the City doesn't have options they can't use them. Charlie Hall, Mermaid Supper Club, stated that the residents of the community are crying out for help with regards to not implementing the franchise fee and he hopes the Council hears them. Mr. Hall stated that the City Administrator is a nice person to work with, the Mayor has met with him several times and is a tribute to the City. Mr. Hall hopes that the Council listens to the business community and the residents and does not implement the franchise fee. . Chuck Miller, 2408 Laport asked about levy limits. Mayor Linke explained that the City has no control over property taxes. The County has control on property valuation and the State sets how much of the rates are charged against that. This amount affects what the City levies. Orduno explained why the City must look for alternative means of revenue and not be dependent on local government aids. Mr. Miller stated that the City must adjust spending. Miller stated that persons at his company have not had a raise in three years. Orduno gave another example of mandates on the City -- the 6.5~ sales tax. This was not something budgeted for. Linke stated that the City during the budget process looks into not only property taxes but license fees and various other revenue sources for the City. The franchise fee would be looked at during the budget process just as the other revenues are. Laurie Schley, Knollwood Drive stated that she objects to having NSP collecting the franchise fee. Schley. stated that people should pay for services. NSP treats her very well. Schley believes that the City should not have a third party collecting funds for the City's General Fund budget. Schley states that by having the property tax increase it makes the residents of the City responsible customers of the City budget. Mounds View City Council Page Twelve •egular Meeting October 13, 1992 Charles Miller stated that the franchise fee has been in existence for 18 years and has never had to be used. The fee has raised its head in the past. The property tax process is already established and should be used. The property tax amount has already been submitted to the State. Councilmember Rickaby during a meeting Don Brager stated that by increasing the property tax the City would receive more in fiscal disparities. The fiscal disparity would not be felt that year but the next year. Rickaby stated that whatever amount the City Council decides to set for the franchise fee, that amount will go up with no action on the part of the residents. Councilmember Rickaby stated that on the survey when asked about the franchise fee, 63~ voted against it. Charlie Hall, Mermaid, stated again that the residents are concerned about this franchise fee and it should be deleted from the agreements. Dave Schwartz of NSP stated that one out of 42 has a franchise fee in affect. Mr. Schwartz stated that he has negotiated 27 franchise agreements in the past five years. Five or six out of those have the franchise fee provision in their agreements but none have evoked it. Councilmember Rickaby asked how many hours Mr.Schwartz has spent on dealing with this franchise fee in Mounds View. These hours will be collected somehow, and it is her assumption that it will be on the NSP bills. Charles Miller is not in agreement with paying a sales tax on a utility. Mr. Miller qualified the meaning of the word franchise. The way it is used in regards to the utility obscures its meaning. Judy Trude stated that if homeowners could not pay property taxes it would go on the tax roll. Dave Schwartz stated there will be accounts uncollectible. The non-payment accounts will be deducted from the fee paid to the City of Mounds View, Councilmember Rickaby stated then that the franchise fee does not have such a stable base. Richard Oman stated that perhaps the implementation of the franchise fee be tabled until the budget process is complete and then deal with the franchise agreements and implementation of the fees. Oman suggested January or February and let the franchise fee survive on its own merits. The budget will be finished in December. Oman stated again that the franchise fee implementation should be tabled as there is no pressure to pass it for October, November or December of 1992. ounds View City Council Page Thirteen ~gular Meetinq -.-- --October 13, 1992 Dave Schwartz, NSP, stated that the City's franchise agreement has a separate fee policy which calls for a public hearing. Trude want a clarification regarding the hearings. Trude asked if the City would have to hold another hearing before the implementation of the fee could be voted on. Mayor Linke explained that a item three could be acted on tonight as the City has met all requirements of the City Charter. The fee could be collected. yearly instead of monthly per the existing agreement. Orduno clarified that the current franchise has 8 more years to be in effect . Charles Miller asked to hear the Council's reasons for wanting the franchise fee and how it would be better for the City residents. Mayor Linke stated that he has had the privilege to sit for many years on the Council and work on many budgets. Linke stated that he has seen the volatility of property tax increases. Linke stated that last year the Council was able to reduce the budget by 1.5~ but had to raise taxes to make up the difference because of . property taxes going down. The franchise fee is a revenue source that the City can count on. The franchise fee will not fluctuate by "whoever has a bee in their bonnet" in the legislature. The City has had to reduce the fund balance and draw it down and loose interest and with the franchise fee money being put in monthly the City would earn interest on that money. Councilmember Wuori stated that she had not made up her mind as to how to vote on the franchise fee. Councilmember Wuori stated that it bothered her to rely on taxes. Perhaps a sliding scale could be looked into. The government has a habit of changing their minds and it is done in the middle of our budget year. If something isn't done, each year the City will fall back little by little. Councilmember Quick stated that no one knows how much the state will cut us this year. Quick asked where does the City make its cuts -- non-essential services, what are non-essential services -- parks, recreation, streets, maintenance. The City has a one million dollar payroll in Police alone. The franchise fee will help Mounds View stay in the future. If the City doesn't do anything Mounds View could become a part of Shoreview, New Brighton or Arden Hills. In order to plan for the future the Council has to make tough decisions. Maybe one of the candidates in the audience will have to deal with the $950,000 cuts next budget session. • unds View City Council Page Fourteen ~ular Meeting ~Jctober 13, 1992 Councilmember Blanchard stated that the franchise fee is a stable resource for the City and is a revenue the City can depend on for future years. The City could buy down property taxes. Councilmember Rickaby stated that what she was hearing from the rest of the Council is that the City Council would do a franchise rate that would bring in $155,000 which would be the same as 8.3 percent maximum levy that can be done. The City could still receive cuts in the middle of the year whether or not there was a franchise fee or property tax increase. The cuts are LGA cuts and they are very different than property taxes. Rickaby doesn't support 8.3~ increase but with some cuts being reinstated from the results of the survey, the City then could take extra money and put it in the fund balance. Rickaby further stated if the City puts the increase on the property tax instead of the franchise fee the City could get more fiscal disparity relief. If the City has higher taxes, it receives more fiscal disparity relief for the next year. Don Brager, Finance Director, explained the situation regarding fiscal disparities. . Last year Mayor Linke stated that Park and Recreation programs had to be cut. These cuts were reinstated because people were upset and the many phone calls had been received regarding these cuts. L. W. Stigney, 7142 Eastwood., stated that there should be a cap on what the City is spending every year.. Mayor Linke stated that the Council has made a conscientious effort to maintain services. There are no levy limits and the City could raise the taxes as high as it would want to. The hiring of a police officer is the only service that is being added. Don Brager, Finance Director, stated that the Council is limited to the amount that could be raised because the amount was already submitted and accepted. Council could lower but not raise taxes. Councilmember Rickaby stated that Mayor Linke made comments regarding Park and Recreation cuts in that he received phone calls regarding those cuts.- The survey taken supported cuts in Parks Maintenance. The City has reinstated those cuts. The phone calls received may have been over former cuts in children's programs. The survey indicated discontinuing dragging and the reduction in ice rinks. Items that the survey indicated the residents wanted back were put back in. Steve Lauterbach stated that the current franchise agreement does not expire for eight years. When would the new franchise Mounds View City Council --- --- -- - - Page Fifteen Regular Meeting October 13, 1992 • agreement go into effect. John Thomson stated that the present franchise fee expires May 1, 1998. The existing franchise fee agreement allows the City to implement a franchise fee of up to 4$ and if fee was implemented it would be paid yearly. The City went to NSP and negotiated to have the fee collected monthly and paid monthly to the City. Councilmember Rickaby stated that a young man had attended a past Council meeting and was concerned with the City~s franchise fee because he thought more environmental issues should be written into it. He then stated that he supported the franchise fee because it would discourage high end users. With the sliding scale the high energy users could decide to use more because they could fit into a smaller rate. MOTIONISECOND: Wuori/Quick to approve Ordinance No. 517 Granting NSP an Electric Franchise VOTE: Mayor Linke - aye Councilmember Quick - aye • Councilmember Rickaby - no Councilmember Blanchard - aye Councilmember Wuori - aye Motion Passes. MOTION/SECOND: Quick Blanchard to approve Ordinance No. 518 Granting NSP a Gas Energy Franchise Mayor Linke - aye Councilmember Quick - aye Councilmember Rickaby - no Councilmember Blanchard - aye Councilmember Wuori - aye Mayor Linke stated that in regards to Ordinance No. 519 Implementing a Gas and Electric Franchise Fee the Council has many options. The options were read and reviewed by Mayor Linke. Charles Miller stated that if Perot gave us a check for $155,000 the City would still be affected by State cuts in June. Mayor Linke stated if the City received cuts in HACA or LGA the City would be $IOOK short: The City would then have to look into budget - reserves. Mayor Linke stated that the property tax increase should have been 10 or 11~. Charles Miller stated that the increase should be put on property tax Mounds View City Council Page Sixteen ~gular Meeting October 13, 1992 Charles Miller stated that the increase should be put on property tax so the franchise fee could be used to fall back on. If the franchise fee is implemented now there will be nothing to fall back on. In an emergency the franchise fee could be implemented for the remainder of that year Roger Stigney stated that in viewing the options the Council has looked at the top users but not at the low income users. No circuit breaker has been provided for low income users. Stigney stated he strongly opposes the franchise fee implementation. Wiley stated that the City is $155,000 in the hole on a proposed budget. The City needs $155,000 to balance the budget. Wiley stated opposition to paying 6.5$ taxes on something he doesn't want to pay taxes on. The franchise fee is a long term solution for $155,000. It would collect $40.00 from every resident and commercial business. Short term solution would be to follow the standard process. This is putting something on that doesn't go away. The City needs a short term fix to balance the 1993 but and then needs to get into synchronization with the State. The Council needs have the budget year go from July to July. • Mayor Linke stated that going July to July had been brought up before and that there is something in the statutes that prevents it. Most cities are on calendar years. Wiley stated that the City needs something to fall back on for catastrophic events. The City needs something in reserve. Trude stated that if using Option 3, it would only raise 6~ of a $3 million budget. Is all the bad will worth it? Charlie Hall asked the Council if they was listening to the people. Hall stated this is a disproportionate tax as far as commercial/industrial. The. businesses will wither and die. Mayor Linke stated that he made an error when considering the 8.3~ property tax increase. It should have been 11 or 12~. Barb Haake asked if the 8.3$ in property tax increase could be amended in December. John Thomson stated that per the Truth In Taxation Law, the City has to input the maximum tax the City is going to levy by September 15. Taxes can't be changed. Mayor Linke asked if there is a penalty for increasing taxes. Brager responded that there is no penalty provision but a change in levy limit could reflect a reduction in the City's LGA. This ounds View City Council Page Seventeen ~gular Meeting October 13, 1992 law may have a similar provision. Councilmember Blanchard stated that the sliding fee option is not fair to residents. Councilmember made a motion to implement the 3% franchise fee across the board with a sunset clause after five years which would end in December of 1998. Councilmember Rickaby asked what that would raise. Orduno responded that it would raise $207,960. Councilmember Wuori seconded the motion. Councilmember Blanchard stated that with the franchise fee of 3% across the board everyone would pay equally. Charlie Hall stated that the Council did not listen to the people. Judy Trude stated that this will hurt businesses but that doing a flat 3% is easier. • Councilmember Rickaby stated that many business people were in attendance and nearly unanimously, except for Charlie Hall, preferred the property tax increase. Charlie Hall stated that 6 to 12 business people talked to the Mayor and Samantha. 100% of those persons favored the property tax increase. Councilmember Blanchard stated that she could only vote on what she felt was best for the residents of the City.. Mayor Linke admitted an error on his part and should have went for 22% on property tax increase limit. One option-the City could take would be to go with a 1% increase straight across the board for the franchise fee and an 8.3 increase in property taxes. Charles Miller stated that the City would be giving up its 4% buffer if it went with 1% on the franchise fee. Miller stated it would be better to put the 8.3% on the property taxes and save the 4% franchise fee as a buffer to use if necessary. Miller asked if the franchise fee is implemented at 3% would there still be an increase in property taxes. Mayor Linke responded in his opinion there would not be. • Barb Haake suggested the franchise fee implementation be tabled. ounds View City Council Page Eighteen ~gular Meeting October 13, 2992 Annette L., 7971 Knollwood, stated she is opposed to the franchise fee as she is on a very strict budget. VOTE: Mayor Linke - no Councilmember Rickaby - no Councilmember Quick - yes Councilmember Wuori - yes Councilmember Blanchard - yes Motion Passes REPORTS Report of Mayor Linke: Received a call from a developer who stated the City would not provide him with his Development Agreement until he paid his past due fees. Council concurred that the Development Agreement would be sent when the City received its check. . Consensus of the Council: Quick - yes Wuori - yes Blanchard - yes Rickaby - yes Report of Councilmembers: Blanchard - attended the Fire Department Open House on Sunday. Wuori - no report Quick - no report Rickaby - no report Bill Frits asked what is happening with Williams Pipeline. Mr. Frits was asked to give Ric Minetor a call tomorrow. Report of Attorney: Regarding the property that has the boat on Sherwood. The property is owned by the bank and the bank has voluntarily offered to get an order to remove the boat so they are not liable. It will take two to three weeks to get the boat moved. This is more economical than the City having to move the boat. Also, mentioned was the general upkeep of the property and they agreed to take corrective action. The home will go back to HUD. • ounds View City Council ~egular Meeting Page Nineteen Jctober 13, 1992 There being no further business before the Council, Mayor Linke adjourned the meeting at 11:50 p.m. • Respectfully subm'tted, w Mich a Severson Recording Secretary C7