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HomeMy WebLinkAboutMinutes - 2001/10/02PROCEEDINGS OF THE MOUNDS VIEW CITY COUNCIL CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA Regular eetmg r~k -~ ' ~ October 22, 2001 __ Mounds View City Hall 2401 Highway 10, Mounds View, MN 55112 7:06 P.M. 1. MEETING IS CALLED TO ORDER 2. ROLL CALL: Sonterre, Quick, Marty, Stigney, and Thomas. 3. APPROVAL OF AGENDA A. Monday, October 22, 2001 City Council Agenda. City Administrator Miller asked that Council move Item 7B to Item 6J. Mayor Sonterre requested that Item 7F be moved up to Item 7B as there was a consultant waiting to answer questions for Council. MOTION/SECOND: Marty/Thomas. To Approve the October 22, 2001, City Council Agenda as amended. Ayes - 5 Nays - 0 Motion carried. 4. PUBLIC INPUT Dan Coughlin of 8468 Spring Lake Road indicated he had come before Council two weeks ago and brought to light some things regarding the former golf course manager including some improprieties concerning cell phone usage because the former golf course manager had called phone sex lines on City time. He further noted that at that same time he had asked Council Member Marty if he had any contact directly or indirectly with Mr. Hammerschmidt from the date of the consideration of his termination forward and the reply was an emphatic no. Mr. Coughlin then stated that it was interesting to watch the replay of the Council meeting and see the Vice President of Innovative Images being caught on camera prompting Council Member Marty with nonverbal cues as to how to answer the question. Mr. Coughlin indicated he had requested'and received a copy of the auditor's report indicating that the City is conducting an audit of Innovative Images and noted the report mentioned deleted files and lack of control. Mr. Coughlin stated he finds it disturbing that Council Member Marty would have contact with and have his answers influenced by someone who is currently under Mounds View City Council October 22, 2001 Regular Meeting Page 2 • investigation by the City. He then indicated that he had evidence to indicate that Council Member Marty has lied to Council and the residents of the City and he feels that contact with yet another individual under investigation by the City is an additional improper contact that causes him concern. Mr. Coughlin expressed his outrage that, even with the weight of everything in the document, Council Member Marty would vote to reinstate the individuals to their former employment with the City. He then stated that he thinks it speaks volumes to the lack of representation of the City by Council Member Marty. He further indicated that not only did Council Member Marty take an oath of office on a bible, but he took that oath on the Coughlin family bible and swore to uphold the law. Mr. Coughlin then said he was at the meeting to express his outrage that there seems to be something afoot and stated he has not been able to put all of the pieces together because of the closed door meetings. He then stated that "something doesn't smell right in Denmark." Mr. Coughlin then stated that when he was Mayor, David Jahnke had come to him to express concerns regarding the golf course. He then indicated that he had apologized to Mr. Jahnke privately and now is doing so publicly for dismissing his concerns and not taking him at his word. Mayor Sonterre asked City Administrator Miller if the word "investigate" was appropriate to use when referring to the Innovative Images matter. City Administrator Miller indicated that she could not give a legal opinion on the matter but said Staff has been referring to it as an investigation as far as the auditor is concerned. Jerry Linke of 2319 Knoll Drive explained that he was trying to get the Mayor's attention with his hand signals because he was under the impression residents were not allowed to ask questions of anyone other than the Mayor. He then said, "as usual, Mr. Coughlin is speaking out of another orifice of his body." Wendy Marty of 2626 Louisa Avenue handed out information to Council and then explained that there were several documents regarding the fitness equipment at the Community Center that was purchased from TSS that is owned by Mayor Sonterre. She then indicated that the City had been told the equipment was being sold at cost and said she had evidence of that in the Park and Recreation minutes from December 11, 2000. She further indicated that she has a statement that indicates that Mr. Sonterre made a profit of $721.00 on the sale. She also indicated that the equipment sold to the City was for in home use only and was not commercial grade equipment. Ms. Marty indicated that using current interest rates TSS owes the City $219.77 interest on the money for using the money for almost six months before providing the equipment. She then noted the total owed from TSS to the City is $941.43. • Mounds View City Council October 22, 2001 Regular Meeting Page 3 Ms. Marty read a letter from City Administrator Miller dated December 7, 2000. She then indicated that she thought it was odd that TSS ordered the equipment that day. Ms. Marty indicated that she finds it odd that Mr. Ulrich would state that the items were in stock and in route in late November when Reebok confirmed that the order was not placed until December 7, 2000. She then indicated that the equipment arrived in early January and one piece was damaged. She further noted that Mr. Sonterre had indicated he did not deal with the broken equipment and the YMCA had it fixed. Ms. Marty indicated she has a copy of an email she received from Reebok that states all of the equipment purchased is for in home use only and there is no warranty because the equipment was not made for commercial use. She further indicated that the email also confirms that the original order was not placed until December 7, 2000, that no items were on backorder, and they were all for in home use which the Mayor knew. Ms. Marty indicated that the City had ordered a Model 1598 treadmill and had received a Model 1399 treadmill, the difference being price and horsepower. She then indicated that the City had purchased a 2.5 horsepower model and had been sent a 2 horsepower model. Ms. Marty expressed concern with liability for the City because the equipment is for in home use only and it is being used commercially. She also expressed concern that it appears that Mayor Sonterre led the City to believe it was purchasing commercial equipment. She then indicated she • did not feel the Council would have agreed to purchase in home use equipment for the Community Center if they had been given the correct information. Ms. Marty began to make a comment about TourFit and Mayor Sonterre told her that she had gone over her time limit and indicated that the comments and information she was providing were factually incorrect and said he would allow no further comments. He then indicated he would be happy to speak with her concerning the matter at another time. City Administrator Miller indicated she had received the information last week and had forwarded it to the City Attorney for his review. She then indicated that Mr. Kesel had written the letter dated December 7, 2000 and noted she had crossed her name off the letter and not signed it. Council Member Stigney asked whether Mayor Sonterre made a profit on the equipment sold to the Community Center. Mayor Sonterre began to answer the question and Ms. Marty interrupted to state that the Community Center received five pieces of equipment and the sixth piece was picked up. She then stated "you made a profit." David Jahnke of 8428 Eastwood Road indicated he has asked Council before for accountability and asked Council to make sure that all the items being brought up be investigated and people held accountable for their actions. Mounds View City Council October 22, 2001 Regular Meeting Page 4 Mr. Jahnke then expressed concern for the budget and stated he does not feel it is necessary to have as many administrative people as the City is proposing. He then asked that Council really look at the numbers and see where things could be cut. Mayor Sonterre noted that there would be a special work session on October 29, 2001 to discuss the budget. Council Member Stigney indicated that not allowing residents to ask questions was discussed at a retreat but stated Counci] had not decided one way or another on the issue. He then indicated that he feels a resident should be allowed to ask questions if they wish. Mayor Sonterre agreed with Council Member Stigney's comment. Mr. Linke indicated that somebody is taking some movements in the background and using that information to put out false information as truth which is happening too much today. Council Member Thomas indicated that any prompting to the table from the audience could be misconstrued. She then told Mr. Jahnke that Council has asked the various departments to cut the budget and noted the budget has been reduced by approximately $300,000. She further indicated that Council will continue to discuss the budget in an attempt to make even more cuts. Council Member Marty clarified that Council Member Quick is of the opinion that the resident input time is not a time for a question and answer session. He then stated that he feels Council imposes the time limit differently for different speakers. Mr. Linke asked if he could ask City Administrator Miller a question. Mayor Sonterre indicated that he could. Mr. Linke asked whether the information on TSS had been turned over to the City Attorney to look at conflict of interest and misappropriation of City funds. City Administrator Miller indicated that the information had been given to the City Attorney for review. Council Member Stigney asked if Council Member Marty was of the same opinion of Council Member Quick concerning the question and answer issue. Council Member Marty indicated he was not. 5. UNFINISHED BUSINESS None. Mounds View City Council October 22, 2001 Regular Meeting Page 5 6. CONSENT AGENDA A. Approve Just and Correct Claims B. Licenses for Approval C. Resolution 5633, Approving the Renewal of the 2001-2002 School Resource Officer Agreement between the Cities of Mounds View and New Brighton D. Set Public Hearing for 7:05 p.m., November 13, 2001 to Consider Intoxicating Liquor License for Jake's Sports Cafe E. Resolution 5639, Adopting the State's Record Retention Schedule F. Resolution 5638, Approving Kennel Licenses for Sham-O-Jets Kennel and Geraldine Grosslein G. Resolution 5637, Approving Wage Adjustment for Tom Kinney (9% longevity) H. Consider Request to Participate in the Government Video Technology Expo 2001 I. Third Quarter Financials J. Consideration of Resolution 5628, a Resolution in Appreciation of New York Mayor Giuliani's Leadership during the September 11, 2001 tragedy K. Set Public Hearing for 7:10 p.m., November 13, 2001 to Consider Major Subdivision Gustafson/Zinser, Long Lake Road/County Road I • Council Member Marty requested that Item 6A be pulled for discussion. Council Member Stigney requested that Items 6G and H be pulled for discussion. Community Development Director Ericson asked that an additional item be added to the consent agenda to set a public hearing for 7:10 p.m. on November 13, 2001 to consider the preliminary plat for a major subdivision at County Road I and Long Lake Road as requested by Mr. Gustafson and Mr. Zinser. MOTION/SECOND: Marty/Stigney. To Approve Consent Agenda Items 6B, C, D, E, F, I, J, and K as presented. Ayes - 5 Nays - 0 Motion carried. • MOTION/SECOND: Quick/Thomas. To Approve Consent Agenda Item 6A as presented. Council Member Marty questioned whether the City should be paying for the Mayor to play in a golf tournament as there was a check for $90.00 to cover those fees. He then questioned whether the City would be attempting to recover the attorney's fees from the Longview Estates matter and noted that there was a check to Kennedy and Graven for that project. Community Development Director Ericson indicated that it is the policy of the City to attempt to recoup attorney's fees on all projects. He then indicated that only a small portion of the bill being paid to Kennedy and Graven could be attributed to the Longview Estates matter. Mounds View City Council October 22, 2001 Regular Meeting Page 6 Council Member Marty questioned why the City was issuing a check to pay for the New Brighton and Mounds View lunches in the amount of $168.25. Community Development Director Ericson indicated that he thought the lunches were for the New Brighton/Mounds View Chamber of Commerce luncheons. City Administrator Miller asked Finance Director Hanson to address the questions of Council Member Marty. Finance Director Hanson indicated the lunches were for the New Brighton/Mounds view Rotary Club from July through September. Council Member Marty asked what check number106850 to Water Resources Service was for. Finance Director Hanson indicated he would need to research the matter and report back to Council. Council Member Marty questioned check number 106871 to Xcel Energy for 2815 Arden Avenue in the amount of $18,530. Finance Director Hanson indicated that the City pays Xcel Energy for a variety of things and explained that the copy in Council packets' was the short form of the document which is 7 pages where his copy is 27 pages. He then indicated that the program only shows the last entry meaning that is actually the total paid to Xcel not for one item. Finance Director Hanson suggested providing the entire report on just and correct claims to Council for two meetings to see if they prefer the long or short form of the report. Mayor Sonterre explained he had asked City Administrator Miller if the golf tournament was attended in the past and whether or not it was an approvable expenditure. Mayor Sonterre further indicated that he was told by City Administrator Miller that it would be appropriate for him to attend City Administrator Miller indicated that he golf tournament is a cost that is paid by other municipalities and based on that she made the assumption that this Council would do that as well. Mayor Sonterre explained that he had indicated that if City Administrator Miller did not feel it was appropriate he would not go. Council Member Stigney commented that it maybe appropriate to cut out perks such as Rotary Club lunches and golf tournaments for next year to help balance the budget. • Mounds View City Council October 22, 2001 Regular Meeting Page 7 Council Member Stigney questioned why the City continues to pay Orkin Exterminating to rid City Hall of mice. He then indicated that, if they are not accomplishing the task, a different exterminator should be considered. City Administrator Miller indicated that Orkin Exterminating is under contract with the City to provide ongoing maintenance. Council Member Stigney asked if it is a perpetual contract. City Administrator Miller indicated it was perpetual until the City severs the arrangement. Council Member Marty indicated he had spoken to someone at the Community Center who had said there was a rodent problem over there as well. Council Member Thomas indicated that at this time of year the critters are all looking for a warm place for the winter which is why they come into buildings. Ayes - 5 Nays - 0 Motion carried. MOTION/SECOND: Quick/Thomas. To Approve Item 6G of the Consent Agenda as Presented. Council Member Stigney indicated that the Resolution had a different dollar figure at the last meeting. He then stated that he had asked at the Last Council meeting if the longevity increases were cumulative and was told they were not but it appears to him that they are. Deputy Chief Brennan explained that the longevity pay is applied to the base pay and is not cumulative. Deputy Chief Brennan explained that the longevity pay percentage is applied to the top patrol salary. He then indicated that the top patrol salary is adjusted each year for cost of living and noted that when a person gets to the point of the 9% for longevity they receive only 9% not the 5% and the 9%. Council Member Stigney commented that the patrol contract did not seem very favorable to the City and suggested that Council take a closer look at the contracts it is approving. He then noted that he did not vote for this last time and will not vote for it this time. Ayes - 4 Nays - 1(Stigney) Motion carried. MOTION/SECOND: Quick/Marty. To Approve Item 6H as Presented. Council Member Stigney indicated he did not feel it was appropriate for City Staff to spend money going to national conventions when there are local and regional conventions that can be attended. Mounds View City Council October 22, 2001 Regular Meeting Page S Council Member Marty indicated he had talked to Patrick about this convention and had been told that there is no regional convention and that there is only this convention that the department plans on attending. He further indicated that the matter was somehow missed in the budget as it usually is budgeted for and that is why it is before Council. Mayor Sonterre indicated he had spoken to Patrick who told him this conference is unique and exclusive to the issue of municipal cable and municipal broadcasting and he gains insight each year he attends. Council Member Stigney stated that it says he will be attending six events and Council Member Marty had said the department was only attending the one event. Council explained that there is only one convention but several different sessions are offered at that convention. Council Member Marty explained that there would be no cost to the citizens for the convention because the income for the entire cable department is derived from the cable franchise fee and noted that there is an excess $103,000 in the budget that will be carried over to next year. Council Member Stigney clarified that the money coming in from cable use has specific uses and applications. He then indicated that just because the money is in there does not mean it has to be • spent. Ayes - 4 Nays - 1(Stigney) Motion carried. 7. COUNCIL BUSINESS A(1). Consideration and Discussion of Resolution 5627, a Resolution Approving a Development Review for an Expanded Billboard on City- owned Property Located at 2373 County Highway 10, and Discussion Regarding Proposed Easement Purchase Agreement -Planning Case No. DE01-004 Community Development Director Ericson indicated that Clear Channel Outdoor had requested permission to expand the billboard located on City-owned property from 300 square feet to 672 square feet. He then noted that at the October 8, 2001 meeting there were discussions concerning the expanded easement and the agreements for the sale of the required property. He further noted that Clear Channel Outdoor had offered to pay the City $50,000 up front and $7,000 per year forever but Council had indicated it would like to see the yearly payment allow for a CPI. Community Development Director Ericson indicated that Clear Channel Outdoor had agreed to include a CPI figure of 3% with the yearly payment and said that the Planning Commission had • recommended approval of the request as it meets ail the necessary requirements. Mounds View City Council October 22, 2001 Regular Meeting Page 9 Community Development Director Ericson indicated that Staff had prepared two resolutions for consideration, one for the approval of the expansion and one for the wetland alteration. He then indicated that the wetland alteration permit would be subject to a number of stipulations, one of which is that the applicant must obtain a permit from Rice Creek Watershed District. Community Development Director Ericson indicated that the new purchase agreement had been included in Council packets and said that City Attorney Riggs had a few issues with the document but none significant enough to prevent the City from moving ahead with approval. Community Development Director Ericson indicated that Council Member Stigney had asked at the previous meeting how much revenue would be generated from the billboards at the golf course. He then indicated he had determined that each billboard was projected to bring in $41,000 per year with an annual inflation percentage of 4%. He further stated that the two situations are completely different in that this billboard is already there and Clear Channel Outdoor does not have to pay the City for the billboard. Council Member Marty indicated he was pleased to see that the document had been changed to reflect a CPI of 3% but said he did not see a sunset clause. He then indicated that, even if it was many years out, he would like to see a sunset clause. He further indicated that he had found out that the sign is not just in a wetland buffer it is in the wetland and that concerns him. Community Development Director Ericson indicated that there had been discussion concerning a sunset clause but said Clear Channel Outdoor was not interested in agreeing to a sunset provision as there is no sunset provision on the current billboard. Council Member Marty indicated that building the larger billboard would benefit Clear Channel Outdoor more than the City and it is in the wetland. He then indicated that he could not support it if there was not a sunset clause. Council Member Thomas noted she would also like to see a sunset clause but said that since Clear Channel Outdoor has a perpetual easement to have its billboard there the Company does not have to agree to a sunset provision. Mayor Sonterre disagreed that Clear Channel Outdoor is getting more out of the deal than the City. He then explained that the City is currently stuck with an unsightly billboard forever that does not generate revenue and with this proposal the City would get a modern billboard that is nicely landscaped, an area to use for a welcome to Mounds View sign, and a sizeable up front payment with continued yearly revenue forever. Council Member Marty questioned whether Mayor Sonterre was willing to be bought for the City's wetlands. He then indicated that if the sunset clause is not agreed to now that perhaps in the future when an offer is presented again the City would be able to get the sunset clause. • Mayor Sonterre stated he did not feel the matter was "worth playing poker over." Mounds View City Council October 22, 2001 Regular Meeting Page 10 Council Member Stigney asked whether the billboards at the golf course would be 4% CPI or straight 4%. Community Development Director Ericson indicated it was 4%. Council Member Stigney questioned why the City would agree to 3% if it got 4% out at the golf course. He then indicated if there is no sunset provision he is not interested in expanding the billboard. Council Member Stigney suggested there was potential for expansion of billboards out at the golf course if Clear Channel Outdoor would consider reducing the time on this billboard and agree to a sunset provision. He then stated he did not feel the sign would be there forever and said he felt the City could wait. Council Member Quick asked how the encroachment into the wetland would be mitigated. Community Development Director Ericson indicated that they would be allowed to fill up to 400 square feet without having to mitigate. He then indicated that they intend to fill 192 square feet. He further indicated that any filling or reduction of flood storage capacity of the wetland would have to be replaced and there would be a Swale along side the billboard area. Council Member Quick commented that by Rice Creek Watershed District standards the • encroachment into the wetland is very minor. Council Member Marty indicated he would like the Council to try to be proactive for future residents and ask for a sunset clause even if it was many years out. Community Development Director Ericson asked if Council was suggesting 50 years as a sunset provision or what the suggestion would be. He then indicated he could bring suggestions for discussion with Clear Channel Outdoor. Council Member Quick stated that the City currently has a situation where there is an unsightly older billboard located on City property that would be there forever and ever if they wish. He then said that by allowing them to expand the billboard the City gets a nicer billboard, a large upfront payment, and yearly revenue forever. He then commented that with all the budget discussion he would think it in the best interest of the City to add this as a revenue source. MOTION/SECOND: Quick/Thomas. To Waive the Reading and Approve Resolution 5627, a Resolution Approving a Development Review for an Expanded Billboard on City-owned Property Located at 2373 County Highway 10. Council Member Stigney indicated he did not feel the City had done enough bargaining and suggested tabling the matter for further discussion. Mounds View City Council October 22, 2001 Regular Meeting Page 11 Council Member Marty indicated he would like to see Council discuss the matter further as this is only the second time it has been talked about at the Council level. Council Member Stigney stated he felt the City needed to negotiate a sunset clause for the billboard. MOTION/SECOND: Stigney/Marty. To Table Resolution 5627 for Further Discussions and Negotiations. Ayes - 2 (Stigney/Marty) Nays - 3(Sonterre/Thomas/Quick) Motion failed. Ayes - 3 Nays - 2 (Marty/Stigney) Motion carried. A(2). Consideration and Discussion of Resolution 5634, a Resolution Approving a Wetland Alteration Permit for an Expanded Billboard on City-owned Property Located at 2373 County Highway 10 Community Development Director Ericson indicated that Resolution 5634 would authorize expansion into the wetland and then read the stipulations that would be required in order to obtain the wetland alteration permit. MOTION/SECOND: Quick/Sonterre. To Waive the Reading and Approve Resolution 5634, a Resolution Approving a Wetland Alteration Permit for an Expanded Billboard on City-owned Property Located at 2373 County Highway 10. Council Member Thomas indicated she had reservations about approving this Resolution prior to hearing Rice Creek Watershed District's comments on the matter. Community Development Director Ericson agreed with Council Member Thomas but said the Resolution would not be approved if Rice Creek Watershed District did not approve the project. He then suggested Staff could insert language into the Resolution requiring the applicant to comply with all Rice Creek Watershed District requirements. Council Member Thomas stated she felt Council maybe losing an opportunity to discuss any comments that Rice Creek Watershed District may have prior to voting on the Resolution. Council Member Stigney stated he thought it would be better to wait because other government entities look at things and will push them through if it thinks the City wants this. Council Member Marty stated he had concerns for mitigation of the wetland. He then stated he feels that the City needs to preserve wetlands not just sell them. • Mounds View City Council October 22, 2001 Regular Meeting Page 12 MOTION/SECOND: Marty/Thomas. To Table Resolution 5634 Pending Final Determination by Rice Creek Watershed District. Ayes - 4 Nays - 1 (Sonterre) Motion carried. Mayor Sonterre asked if Mr. McCarver had talked to Rice Creek Watershed District. Mr. McCarver indicated he had not but said he will shortly and indicated they intend to comply with all requirements of Rice Creek Watershed District. B. Consider Request to Upgrade the HVAC System at the Community Center Steve Dazenski indicated he is in charge of overseeing maintenance at the Community Center and explained that the HVAC has not been operating at complete efficiency since it was installed. He then explained that there are broken parts and the units are short cycling so they never reach peak efficiency, do not remove the humidity from the air in the summer, and they overheat meaning Staff has to go in and reset the equipment frequently. He further explained that Staff can reset the equipment three or four times before a service call is needed. Mr. Dazenski explained that Staff has been using a band aid approach to the problem but with the winter heating season beginning it is time to fix it properly before any further damage is done to the system. He then explained that the life expectancy of the equipment maybe compromised if the City does not take corrective action. He also noted that the electric and gas bills at the Community Center should show a marked improvement once the units are operating properly. Mr. Dazenski indicated that a consultant was used to identify all of the issues with the system and indicated that the consultant was present to answer any questions of Council. Council Member Marty indicated he was very concerned when he read that the units should have a life expectancy of 30 to 50 years and will only last five years at the current rate. He then noted that, based on the report from the consultant, it appears as though the equipment was not installed correctly. He further indicated it would seem appropriate for the City to ask the actual installer to pay for the repairs. Mr. John Derrick of KFI indicated he could not speak to the legalities of going back to the contractor to pay for the repairs. He then indicated that the controls contractor was willing to make the modifications for the travel actuators so there should not be any more broken equipment, at no additional charge to the City. He further indicated that any parts would need to be paid for by the City. Mr. Derrick then said that the cost ofpursuing the contractor, since they were asked and are not willing to pay for the repairs, could outweigh what the City would gain. Council Member Marty indicated that he felt $12,000 to make all the repairs to the system was a good investment to save the life expectancy of the equipment. • Mounds View City Council October 22, 2001 Regular Meeting Page 13 Mr. Derrick agreed that making the corrections would increase the likelihood that the equipment will last the life expectancy of 30 to 50 years. Council Member Marty clarified that $12,000 would completely fix everything that needs to be done at the present time. Mr. Derrick indicated that the $12,000 is the minimum that needs to be done to get the system operating in top order. He then indicated there are underlying design issues because one person made a fix without consulting the next person and that made things worse but said the $12,000 would get the base system operating the way it was intended to operate. Council Member Thomas asked what it cost the City to install the HVAC at the Community Center. She then questioned whether it would be more cost effective to pull the system out and completely redo it rather than spend $12,000 on a system that is not right. Mayor Sonterre asked Mr. Derrick for an approximate cost to replace the HVAC system at the Community Center. Mr. Derrick said he hesitated to speculate on a price but said the City could expect to easily pay $100,000 for a new HVAC system at the Community Center. . Council Member Stigney questioned whether the repairs done in 2000 and 2001 and mentioned in the memo were paid for by the City or the contractor. Mr. Dazenski indicated that some parts were under warranty but said the City paid the vast majority of the amount of the repairs. Council Member Stigney stated he felt the City should ask the contractor to pay for the repairs considering the fact that the life expectancy for the equipment is 30 to 50 years and it is failing after only five years. Council Member Quick indicated there was a lot of conversation going on in the audience and asked Mayor Sonterre to request quiet in the gallery. Mayor Sonterre asked those in attendance to limit their whispering or take it outside into the hallway. Council Member Stigney questioned whether Mr. Derrick had identified problems so the City could go back to the original contractor and demand that they pay to fix the system. Mr. Derrick indicated he had identified the problems and said the original issues stemmed from design issues all the way through installation issues. He then indicated that he had sent a letter to the contractor asking the contractor to honor the installation and had received a negative response based on the fact the money was released in full and the warranty period is expired. Mounds View City Council October 22, 2001 Regular Meeting Page 14 Council Member Stigney indicated he would like the City Attorney to draft a letter demanding satisfaction on behalf of the City as, warranty aside, the system was not properly installed which is the fault of the contractor. Council Member Stigney asked what type of warranty Mr. Derrick had. Mr. Derrick indicted he would not be installing any equipment at the Community Center and, as such, did not have a warranty. City Attorney Vose indicated it maybe an uphill battle trying to get the contractor to pay for the repairs given the existence of a warranty and the payment and acceptance of delivery. Council Member Stigney stated that something has to work for its intended purpose and this system did not. He then indicated he would think a letter from the City Attorney might elicit a different response. Council Member Thomas indicated she was fine with pursing whatever means the City can to recoup the funds to repair the system but said she feels it is time to fix the system now before the heating season is in full swing. Mr. Linke indicated that the City was the general contractor on this project. He then indicated that there was value engineering through the mechanical contractor and it was decided to authorize a downgrade to the system and then it was decided to put more money back into it. He further indicated that the picture gets cloudy as to how the City can go back after the mechanical contractor to pay for the repairs. Council Member Marty indicated there were a number of different contractors involved. Council Member Thomas indicated that it was standard procedure to take on the general contractor because they are responsible for the work of their sub-contractors. She then noted this type of situation is exactly why the City should not act as a general contractor. Mayor Sonterre indicated that the time to fix the equipment is now and proceed to look into repayment from the contractor after the fact. Council Member Marty asked if Council needed to make a motion to authorize the expenditure to repair the HVAC system. City Administrator Miller indicated a motion would be appropriate in this case. MOTION/SECOND: Marty/Thomas. To Authorize the Expenditure of $12,000 to Make Corrections to the HVAC System at the Community Center to Increase Efficiency and Protect Life Expectancy of the Equipment. . Council Member Quick asked where the $450.00 fit in. Mounds View City Council October 22, 2001 Regular Meeting Page 15 • Mr. Derrick indicated it was the correction from the controls contractor. Council Member Quick asked if the $12,000 would correct all the different items listed. Mr. Derrick indicated that the $12,000 would cover the cost to fix the equipment and the test and balance work. City Attorney Vose indicated that any contract over $100,000 needed to have a bond posted. Council Member Marty accepted the amendment to the motion. Council Member Thomas accepted the amendment of the City Attorney. Ayes - 5 Nays - 0 Motion carried. • Council Member Marty asked how soon corrections to the system would be commenced. Mr. Derrick indicated that the corrections should begin right away and said he will work with City Staff to coordinate contractors. C. Introduction and First Reading of Ordinance 689 Revising the City's Tobacco Ordinance MOTION/SECOND: Quick/Marty. To Table Ordinance 689 Revising the City's Tobacco Ordinance to the Next Work Session. Ayes - 5 Nays - 0 Motion carried. D. Introduction and First Reading of Ordinance 687 Implementing a Franchise Fee on Xcel Energy Electric and Natural Gas Operations Within the City of Mounds View for the Year 2002. • Finance Director Hanson indicated this was the first reading of Ordinance 687 and said the City has had a franchise agreement with Xcel since 1993 under which a franchise fee on utility fees is collected on behalf of the City. He then indicated that the agreement has an annual sunset clause and needs to be reenacted each year in order to continue. Finance Director Hanson indicated that the franchise fees collected would be approximately $400,000, half of which will go into the general fund and the other half would go into the street improvement fund. He then indicated that due to budget concerns, he feels it is in the best interest of the City to approve this Ordinance and ensure this revenue source for the City. Mounds View City Council October 22, 2001 Regular Meeting Page 16 MOTION/SECOND: Quick/Stigney. To Waive the Reading and Introduce First Reading of Ordinance 687, an Ordinance Implementing a Franchise Fee on Xcel Energy Electric and Natural Gas Operations Within the City of Mounds View for the Year 2002. Council Member Stigney pointed out that this is asking for a continuation of the 4% franchise fee on energy. Council Member Marty indicated he always used to ask Mr. Kesel if there was any way to put more of the franchise fee into the street improvement fund. Finance Director Hanson indicated the 50/50 split was fairly new as it used to be 60/40. He then indicated that in light of budget concerns for 2002 it was not possible to do so. Council Member Quick indicated that due to the changes in the state legislature the City was struggling with how to balance its budget and needs this revenue source in the general fund. He then indicated that once the City has sorted out how the legislative changes would affect the City it may be possible to revisit how the franchise fee is divided up. Ayes - 5 Nays - 0 Motion carried. E. Introduction and First Reading of Ordinance 688 Implementing a Franchise Fee on Reliant Energy Natural Gas Operations within the City of Mounds View for the Year 2002 Finance Director Hanson indicated that this Ordinance would implement a franchise fee on Reliant Energy Natural Gas operations within the City. He then indicated that this revenue source was much smaller due to the small territory of Reliant Energy within the City. He further indicated that, as a matter of policy, the City needed to maintain consistency with the utility providers in the City. Council Member Stigney asked how much revenue is provided by this franchise fee. Finance Director Hanson indicated he did not have a full year's worth of data to interpret but said that it appears to be under $1,000. MOTION/SECOND: Thomas/Quick. To Waive the Reading and Introduce First Reading of Ordinance 688 Implementing a Franchise Fee on Reliant Energy Natural Gas Operations Within the City of Mounds View for the Year 2002. Council Member Stigney noted this is a 4% energy fee. Ayes - 5 Nays - 0 Motion carried. F. Consider Amending Resolution No. 5508, a Resolution Setting 2001 Meeting Dates for City Council Meetings and Work Sessions Mounds View City Council October 22, 2001 Regular Meeting Page 17 City Administrator Miller indicated that when Resolution 5508 was passed the City inadvertently missed the fact that Veteran's Day falls on a Sunday and, is therefore, observed on Monday, November 12, 2001. She then indicated that this amendment to the Resolution would allow for the meeting on November 12, 2001 to be canceled and rescheduled for Tuesday, November 13, 2001. MOTION/SECOND: Stigney/Thomas. To Waive the Reading and Approve the Amendment to Resolution 5508, a Resolution Setting 2001 Meeting Dates for City Council Meetings and Work Sessions. Ayes - 5 Nays - 0 Motion carried. 8. SPECIAL ORDER OF BUSINESS None. 9. REPORTS Council Member Quick asked Finance Director Hanson if it would be appropriate to contact him if he had questions concerning the just and correct claims when his packet arrived. • Finance Director Hanson indicated it would be fine to contact him with questions on just and correct claims prior to the meeting. 10. APPROVAL OF MINUTES A. October 8, 2001 City Council Minutes. Council Member Marty requested the following change: On Page 12, third paragraph, insert the word "who" before the word own. Council Member Thomas pointed out that doing so made the sentence not read correctly and suggested using the phrase "could potentially have pine trees planted to make it less of an eyesore." Council Member Marty requested the following changes: On Page 14, fourth paragraph indicate City Administrator Miller had spoken to "Mr. Alsop." On Page 1, center of the page change to "had spent." Assistant to the Administrator Reed requested that Dabney Brown be changed to "Dabney Bradley" throughout the document. MOTION/SECOND: Marty/Thomas. To Approve the Minutes of the Monday, October 8, 2001 Council Meeting as Amended. Mounds View City Council October 22, 2001 Regular Meeting Page 18 • • Ayes - 5 Nays - 0 Motion carried. B. August 27, 2001 Council Meeting Minutes Council Member Thomas requested permission to abstain from voting on the minutes as she was not present at the meeting. Council Member Stigney requested the following changes: On Page 4, indicate that check number 106424 was for mileage reimbursement of $417.45 and delete one "was". On Page 4, indicate that check number 106412 in the amount of $489.86 and check number 1063554 in the amount of $1,207.70 and check number 106334 to Ron Huber in the amount of $503.06. In the motion and second to reconsider indicate that he had asked for the division of the question to allow voting on the removed checks separately and the City Attorney had ruled that the motion, as made, was not divisible. Council Member Stigney requested the following changes: On Page 6, fifth paragraph, indicate that Council Member Stigney had said there needed to be a cap on the salary of the position being filled. On Page 15, fourth paragraph, he did not request a copy of the contract from the Fire Chief and asked Staff to check the tape. Council Member Thomas suggested removing that line as no one remembered requesting to receive the contract. MOTION/SECOND: Stigney/Marty. To Approve the Minutes of the Monday, August 27, 2001 Council Meeting as Amended. Ayes - 4 Nays - 0 Abstain - 1(Thomas) Motion carried. ~~ ~~ 11. CLOSED SESSION TO DISCUSS PENDING LITIGATION Mayor Sonterre requested permission to adjourn from the closed session. It was the consent of Council to adjourn from the closed session. Mayor Sonterre indicated that Council would be recessing to a closed session to discuss potential and threatened litigation with legal staff. The meeting recessed to closed session at 9:00 p.m. 12. Next Council Work Session: Next Council Meeting: Monday, October 29, 2001 Tuesday, November 13, 2001 • • Mounds View City Council Regular Meeting 13. ADJOURNMENT Mayor Sonterre adjourned the meeting at Transcribed and recorded by: Joan Lenzmeier Timesaver Off Site Secretarial, Inc. p.m. October 22, 2001 Page 19 MOUNDS VIEW CITY COUNCIL MEETING October 22, 2001 Please sign in I~:~~~I E ADllRESS f C:Admin.resolution.sign-in sheet