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HomeMy WebLinkAboutMinutes - 2004/10/25~,~°° PROCEEDINGS OF THE MOUNDS VIEW CITY CO C • CITY OF MOUNDS VIEW ~~~~f%~ RAMSEY COUNTY, MINNESOTA ~~ Regular Meeting October 25, 2004 Mounds View City Hall 2401 Highway 10, Mounds View, MN 55112 7:00 P.M. 1. MEETING IS CALLED TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL: Linke, Quick, Marty, Stigney, and Gunn 4. APPROVAL OF AGENDA Monday, October 25, 2004 City Council Agenda. MOTION/SECOND: Gunn/Quick. To Approve the Monday, October 25, 2004 Agenda as • presented. Ayes - 5 Nays - 0 Motion carried.. 5. PUBLIC INPUT William Werner, 2665 Sherwood Road, asked what the good news about the golf course was. Mayor Linke stated that they had received $62,000 from the billboard people. Dave Jahnke, 8428 Eastwood Road, stated that they should let the Economic Developer continue working on selling the golf course. He stated that incorrect loss figures regarding the golf course were given during a recent interview that the Mayor had. Mayor Linke stated he had been speaking about one year's loss during the interview. Mr. Jahnke stated that the taxpayers need to know how deep in debt the golf course really is. Mayor Linke stated that he agreed with him, but that the golf course isn't costing the taxpayers dollars. Mr. Jahnke stated he would like to see this evening's entire agenda tabled until after the election. • Mounds View City Council October 25, 2004 Regular Meeting Page 2 Council Member Quick asked how much the billboards would pay the City annually. Director Ericson stated that it will begin at $260,000 and would escalate over the course of the 20-year contract, when it would end at around $500,000. Council Member Quick asked when the bonds would be paid off. Director Ericson stated he believed it was around 2012. Finance Director Hansen stated that the bonds would be paid off around 2012-2013, and then over the next five years the internal loan would be paid back, and the projection is that the golf course would be debt free in about 2018. Council Member Quick asked if they would need to borrow money to the golf course next year. Finance Director Hansen stated that there would be one last year of a small internal loan. He stated the internal loan might go up slightly, but the total debt will be going down each year. Council Member Quick asked if the $260,000 would be over and above any revenues that were made on the golf course, and Finance Director Hansen stated that it would be. Council Member Quick stated that according to the contract, they are guaranteed a four percent • increase on that, and Finance Director Hansen stated that he believed that that was the number in the contract. Council Member Quick asked what they are going to be at per year by the time they pay off the debt, and Finance Director Hansen stated that in the 15 to 20 year range, it would be between $300,000 and $400,00 per year in revenue. Council Member Quick stated that it sounded like they had the situation in hand and they would pay off the bonds on time and would be able to pay off the internal loans, including interest, and still have a golf course. Council Member Stigney stated that any income from the billboards will require that the billboards are completely advertised, and that remained to be seen. He asked why the billboard revenue doesn't go into the General Fund to reduce the taxpayers' debt, instead of stringing along the golf course. Finance Director Hansen stated that when they sold the golf course bonds, all revenues derived from the golf course are dedicated to the golf course as long as those bonds are outstanding. Council Member Stigney stated that with some legal opinions and changes, they could get that changed around. • Mounds View City Council October 25, 2004 Regular Meeting Page 3 Nile Raufer, 7945 Long Lake Road, stated that if they would have had the billboards eight or nine years ago, the golf course wouldn't be in the trouble it is today. Mayor Linke stated that that was the choice of the Department of Transportation. Mr. Raufer argued that they are getting taxed on the park, and people enjoy the park. He stated that people enjoy using the golf course also. 6. CITY BUDGET QUESTIONS AND COMMENTS None. 7. SPECIAL ORDER OF BUSINESS None. 8. JUST AND CORRECT CLAIMS. Council Member Marty inquired about Item 114710, page 12, regarding County H2 improvements. Public Work Director Lee stated that the bill was from the inspector who was putting together a • punch list of things that needed to be done. He stated there will be one more small bill after the contractor fulfills their obligations with the contract. Council Member Marty noted that the pest control bills have lowered since switching to just one pest control place regarding Item 114727, page 14, Will Kill Pest Control. MOTION/SECOND: Marty/Gunn. To approve Just and Correct Claims as presented. Ayes-5 Nays-0 Motion carved 9. CONSENT AGENDA A. Licenses for Approval B. Reschedule a Public Hearing for Resolution 6375, an Off Sale Liquor License for Network Liquor Store, LLC located at 2345 County Road H2. Reschedule for November 8, 2004 at 7:05 pm. C. Set a Public Hearing for 7:lOpm, Monday, November 8, 2004 to consider Resolution 6381 an Off Sale Liquor License for ABC Liquor located at 2840 Highway 10. D. Resolution 6385 Approving advertisement in the 2005 DEX Twin Cities Golf Guide. . MOTION/SECOND: Marty/Quick. To Approve the Consent Agenda as presented. Mounds View City Council October 25, 2004 Regular Meeting Page 4 Ayes - 5 Nays - 0 Motion carried. 10. COUNCIL BUSINESS A. 7:05 p.m. Public Hearing to Receive Public Input and Pass upon Resolution 6376 Adopting a Special Assessment Levy for Delinquent Public Utility Accounts. • Mayor Linke opened the public hearing. Finance Director Hansen stated that this resolution is an annual exercise to submit delinquent utility accounts to Ramsey County to be assessed against the property tax of the properties, to be collected next year. He stated that 38 had paid, and there were 67 still outstanding. He stated the full list is before the Council in cased there were any NSF checks. Council Member Marty asked why the due amount and the total were different. Finance Director Hansen stated that there is a $25 administrative fee added to cover the time and cost of going through this assessment process, so the total includes that fee. There was a discussion regarding the old way these bills were handled versus the new way. There was no public comment, and Mayor Linke closed the public hearing. MOTION/SECOND. Marty/Stigney. To waive the reading and approve Resolution No. 6376, Adopting a Special Assessment Levy for Delinquent Public Utility Accounts. Ayes-5 Nays-0 Motion carried. B. 7:10 p.m. Public Hearing to Receive Public Input and Pass upon Resolution 6377 Adopting a Special Assessment Levy for Diseased Tree Removals. Mayor Linke opened the public hearing. Finance Director Hansen stated there were four properties that had not paid their invoice for diseased tree removal, although now two of them have paid, and that this item is handled the same as the prior item. There was no public comment, and Mayor Linke closed the public hearing. MOTION/SECOND. Gunn/Stigney. To waive the reading and approve Resolution No. 6377, Adopting a Special Assessment Levy for Diseased Tree Removals. • Ayes-5 Nays-0 Motion carried. Mounds View City Council October 25, 2004 Regular Meeting Page 5 • C. Resolution 6382, Consider a Tobacco License for Network Liquor on 10, LLC located at 2345 County Road H2. MOTION/SECOND. Quick/Marty. To waive the reading and approve Resolution 6382, Tobacco License for Network Liquor on 10, LLC, located at 2345 County Road H2. Ayes-5 Nays-0 Motion carried. D Resolution 6378 Appointing MMKR to Provide Audit Services for the Year Ended December 31, 2004. • MOTION/SECOND: Quick/Gunn. To waive the reading and adopt Resolution 6378, appointing MMKR to Provide Audit Services for the Year Ended December 31, 2004. Council Member Marty asked whether this service was a big asset to the Finance Department's staff and how long this service would be needed. Finance Director Hansen stated this is a one-year renewal, and he is very happy with their service. Ayes -5 Nays - 0 Motion carried E. Resolution 6379 Approving a Step Increase for John Hughes. Mayor Linke read the Resolution aloud. Council Member Marty asked how this was missed since Mr. Hughes' last step was on April 14 of 2003. Public Works Director Lee stated that it fell through the cracks because there is not a Human Resources person, and that this would be retroactive. MOTION/SECOND. Marry/Stigney. To adopt Resolution 6379, Approving a Step Increase for John Hughes. Ayes-5 Nays-0 Motion carried. F. Review Recommendations to Charter Commission Regarding Chapter 5. Director Ericson stated that this language is a result of a discussion of the September 27tH meeting, and this would offer something back to the Charter Commission for them to consider and to bring back to the City Council. He stated that a letter had been received from Duane McCarty regarding whether this was a revision or an amendment, and he stated that the City Attorney could address that. Mounds View City Council October 25, 2004 Regular Meeting Page 6 • Mayor Linke stated that basically all this was doing is sending this as a recommendation to the Charter Commission to look at, and that the City Attorney can look at it once they bring it back, and at that point they would look at the amendment or revision portion of it. MOTION/SECOND: Marty/Gunn. To send the recommendations regarding Chapter 5 and the letter from Duane McCarty to the Charter Commission for their comments. Ayes - 5 Nays - 0 Motion carried. G. Resolution 6352, Adding Section 3.45 to the Mounds View Personnel Policy Regarding Retirement Health Savings Plans. Finance Director Hansen stated that this item has been discussed several times this year, and it's the same proposal that has been discussed since the beginning of September. MOTION/SECOND. Gunn/Linke. To waive the reading and adopt Resolution 6352, Adding Section 3.45 to the Mounds View Personnel Policy Regarding Retirement Health Savings Plan. Council Member Stigney stated he was under the impression that they were going to look at the Health Savings Plan along with the Health Retirement Account when the League of Minnesota Cities comes up with a complete package, and he thought this would be jumping the gun on that. • MOTION/SECOND. Stigney/Marty. To postpone this item until the Council has heard back from the League of Minnesota Cities. Finance Director Hansen stated that he had spoke to Erin Ryan at the League of Minnesota Cities, who had given him no compelling reasons for delaying this item. Council Member Gunn stated that she didn't see a problem with giving the employees the opportunity to get this- started, it's in one of the contracts, and that she agreed with Finance Director Hansen that there wasn't a problem with starting this one without the other. Council Member Stigney stated that they should look at them in conjunction with the other, and that the League of Minnesota Cities is doing an analysis of that. He stated he failed to see the rush. Finance Director Hansen stated that the City isn't funding this; the employees are. Council Member Stigney stated that you have to look at them in comparison, and not in isolation. Council Member Marty stated he understood what Council Member Stigney was saying, and he asked whether this was time critical in any way. . Council Member Gunn stated that this was optional to employees, and they could make this available to those employees who would be able to put this to good use right now. Mounds View City Council October 25, 2004 Regular Meeting Page 7 • Finance Director Hansen stated that. it was time sensitive to some employees who would like to get started on it. Mayor Linke stated that there is a motion and a second to postpone until sometime in the future when the health savings plan comes around. Council Member Stigney stated it would be until they got some information together so there could be a comparison of the two. Ayes-1(Stigney) Nays-4 Motion failed. • MOTION/SECOND. Stigney/Many. To strike the words "and compensatory time" at the end of the first sentence in Item A of the Resolution. Director Ericson asked if that language was already present in any bargaining unit's agreements. Finance Director Hansen stated that the only one it may be in is Public Works. He stated that they would be paying out the compensatory time either way, and it's just a question of whether or not they allowed the employee to put it into the deferred comp. He stated the striking that language could actually end up costing the City money because if it's put into the retirement account, the City saves its share of the Social Security. Ayes-1(Stigney) Nays-4 Motion failed. Mayor Linke asked for a vote on the original motion. Ayes-4 Nays-1(Stigney) Motion carried. H. Resolution 6386, Approving the 2004-2005 Labor Agreement with the Public Works Bargaining Unit. Director Ericson stated that this item had been discussed by the Council in Executive Session, and that the language that was before them represents the changes that the Council and Bargaining Unit have agreed to. Director Ericson read the resolution aloud. Mayor Linke asked if this had been put in the public book, and Director Ericson answered yes. MOTION/SECOND. Marry/Quick. To approve Resolution 6386, Approving the 2004-2005 Labor Agreement with the Public Works Bargaining Unit. Ayes-4 Nays-1(Stigney) Motion carried. • Mounds View City Council October 25, 2004 Regular Meeting Page 8 • Counsel Member Stigney stated he voted no for the simple reason he didn't like the thing about compensatory time and the retirement health savings going in at this time. I. Resolution 6380, Approving the 800 Mghz order for the Police Department. Chief Sommer the individual departments will have to cover roughly one-third of the cost of these radios and Federal Homeland Security Grants are going to cover two-thirds of the cost. He stated that the 800 Mghz system will become statewide in the future. He stated that these radios are more expensive and complicated than the radios that have traditionally been used in Ramsey County in the past. Council Member Marty stated he saw somewhere that these would be encrypted. Chief Sommer stated that two of the radios would be equipped with inscription capability, so they would not be able to be scanned. Council Member Marty asked if those were portable ones, and Chief Sommer answered yes. MOTION/SECOND. Quick/Marty. To waive the reading and to adopt Resolution 6380, Approving the 800 Mghz order for the Police Department. Council Member Stigney asked if there was money in the budget for this. • Chi f ommer stated that it would need to be laced in the 2005 bud et. e S p g Council Member Stigney asked it was in the preliminary budget. Chief Sommer stated that it was, but not as much as was indicated in the resolution, and there was about a $10,000 difference. Ayes-5 - Nays -0 Motion carried. J. Resolution 6383 Approving and Authorizing the Execution of a Letter Agreement with TKDA for the Groveland Park Building Replacement Project. Public Works Director Lee stated three responses had been received to the request for proposal, and that the low bid was from TKDA in the amount of $19,600. He stated that the Park and Recreation Commissioners had reviewed this and were recommending to go forward with the park building replacement. He stated the funds would be derived from the 2004 budget under park dedication funds. MOTION/SECOND. Gunn/Quick. To waive the reading and adopt Resolution 6383 Approving • and Authorizing the Execution of a Letter Agreement with TKDA for the Groveland Park Building Replacement Project. Mounds View City Council October 25, 2004 Regular Meeting Page 9 • Council Member Marty stated he was still against spending this amount of money for a cinder block building, and that the only income they've had for Park and Recreation is a park dedication fee for a little over $16,000 for a redevelopment this year. He stated over $200,000 would be going out for just this one building. Mayor Linke stated he would be voting for this because it takes care of surveying, plans, specs, and the whole works. He stated some decisions were made at that last building that made it expensive. He stated there is already water and sewer in this location. He stated this had lasted way beyond its life expectancy. Council Member Gunn stated that this building is on its last leg and has got to be replaced. Council Member Quick stated that he understood the mold was pretty bad in the building, and Council Member Gunn stated that it has been for a long time. Council Member Stigney stated he thought that the Park and Recreation Commission had advocated. for this and they were fully aware of the amount of money that they will have for their other projects, and Public Works Director Lee stated that that was correct and they had gone through it with them several times. Council member Stigney asked whether they could handle their requirements with less funding, and Public Works Director Lee stated that that was correct, and they are still recommending • going ahead with this. Council Member Marry stated he wanted to make the point that this type of thing happened with the previous Council with the street funds when they were spent down to zero, and when he first got on the Council they needed to do the streets, and they've had to get more creative. Mayor Linke stated that that was like a special projects fund, and it was meant to be spent down, and he was there when that was set up. He stated it was one of those things where there was no other income other than that one project. Council Member Quick stated that this is the only Council that has been willing to do something about the streets, and he has been advocating replace and rebuild and improve the infrastructure since he's been on the Council Council Member Gunn stated that the Park and Recreation Commission really scrutinizes where the dollars are going, and that is why they don't have a skate park. She stated they are well aware of where the dollars are going and how much they have to spend. Council Member Stigney stated that this isn't really a final approval, and it just to get the plans and final figures, and then it will come back to Park and Recreation and the Council to see if they want to proceed with it, and Public Works Director Lee stated that it will come back to the • Council several more times. Mounds View City Council October 25, 2004 Regular Meeting Page 10 • Ayes -5 Nays-0 Motion carried. K. Resolution 6384 Approving the Banquet Center Management, Catering and Food Service Agreement with Canyon Catering beginning November 1, 2004. Economic Development Director Backman stated that Canyon Grill would be leasing 11,500 square feet of space at the Mounds View Community Center. He stated the Canyon Grill would be paying $3,000 each month for eight months, from November of 2004 to June of 2005, and then $5,000 per month until termination of the lease. He stated the reduction in lease payments for the first eight months is due to the fact that the interim manager terminated services two months earlier than indicated in the RFP and that the interim manager has actively moved previously scheduled events to its other facility. He stated that there is only one event left on the books. Council Member Marty asked why the figure of $14,000 was used in the staff report as far as investing in kitchen equipment rather than the previously used figure of $19,000. He stated he also did not see anything regarding carpeting in the agreement. He stated he would also like a clause in the agreement regarding revisiting payment of utilities if the utility rates continue to climb. Economic Development Director Backman stated that City Clerk/Administrator Ulrich has received several quotes for replacing the carpet in the whole facility, and those quotes range from • $50,000-$70,000. He stated there have been discussions with Canyon Grill regarding reimbursing a portion of that cost. He stated that the Canyon Grill would like the shorter agreement of 14 months rather than five years in light of the changes that have occurred over the last couple of months. Roy Dodd of Canyon Grill stated that the lease process and negotiations have been extremely condensed and complicated, and that this agreement sets the stage for success versus one for conflict and failure. He stated that they are still agreeing to pay the property taxes even though they don't have bookings. He stated it will take three years to get the bookings back up, and that they will be losing money the first six to eight months. He named the current bookings that they have. He stated he had said no to committing their year two improvement investment of $10,000 to the carpeting because he wanted to spend time in the building to know what those dollars would be best used for. Mr. Dodd stated that he has discussed with City Clerk/Administrator Ulrich that in the event the church should leave, he would like an abatement of that rent until a client suitable to the City was located, and City Clerk/Administrator Ulrich had said no to that request. He stated he would like to throw out the suggestion that the rent would be abated for the first two years only. Council Member Marty suggested that since the length of this contract is 14 months, perhaps if the church left, Canyon Grill could come back and ask the Council for abatement of the rent • during the remainder of the contract, and it could be addressed at a later time. Mounds View City Council October 25, 2004 Regular Meeting Page 11 • Mr. Dodd stated he would discuss that with his partners. City Attorney Riggs stated that they had tried to cover every issue in the contract, but this is the one that wasn't covered, and he knew that it was a difficult issue for them. Mayor Linke stated that a motion could be made to approve this, but then leave future negotiations open on this issue. He asked whether an agreement on that issue could be added as an addendum to the agreement. City Attorney Riggs stated that it clearly could be. Economic Development Director Backman stated that he would like to delete the word "existing" on page 3, Item No. 5, second to the last line, under Duties and Responsibilities of the Parties. He stated this was in reference to the fact that here are only 300 chairs at the facility when the capacity is 450. Council Member Stigney asked what the future situation is for bookings if they decide to leave. Mr. Dodd stated that future bookings would be the property of the City, and they would pay the Canyon Grill no commission on them. • MOTION/SECOND. Marty/Gunn. To approve Resolution 6384, Approving the Banquet Center Management, Catering and Food Service Agreement with Canyon Catering beg2nnmg November 1, 2004, together with the amendments pertammg to the abatement, striking the word "existing" in the agreement as heretofore mentioned, and also the language regarding future bookings. Mayor Linke stated he would abstain from the vote for reasons that everyone is well aware of. Ayes-4 Nays-0 Motion carried. (Mayor Linke abstained.) L. Consider Mermaid Request for Reimbursement of Leasehold Improvements. Director Ericson stated that all the tables and chairs have been accounted for. Mayor Linke stated he would not vote for payment of any item that did not have a lien waiver. MOTION/SECOND. Many/Gunn. To waive the reading and adopt Resolution 6372 to reimburse the Mermaid for leasehold improvements. (Motion failed due to lack of a vote.) • Mounds View City Council October 25, 2004 Regular Meeting Page 12 . Council Member Gunn asked why the damage amount was now listed as $417.30 rather than $677.30. She stated the final amounts for the leasehold improvements were also different. Economic Development Director Backman stated that he didn't have the answer to that question. Director Ericson stated that it may be the case that at the previous meeting the final information wasn't available and that these were the final numbers. Council Member Gunn stated she was still in disagreement with the repair bill. Economic Development Director Backman stated that this issue was not time sensitive. MOTION/SECOND. Gunn/Stigney. To postpone this item. Ayes-5 Nays-0 Motion carried. 11. APPROVAL OF MINUTES A. City Council Minutes October 11, 2004 Council Member Marty stated that on page 4, lines 20-41, the correct spelling was Doris Heilman. He also stated that at page 6, line 26, there should be a space between "a" and "wait". MOTION/SECOND: Marty/Stigney. To approving the City Council Minutes of October 11, 2004 as amended. Ayes - 5 Nays - 0 Motion carried. 12. REPORTS A. Reports of Mayor and Council. .Council Member Marty stated that he thought they should approve the Chamber of Commerce to put up a sign rather than a piece of paper. Mayor Linke stated that it would be up to them to bring in a proposal. B. Staff 1. Finance Department Quarterly Report. Council Member Marty asked whether the water meters were still on the water bills. • Mounds View City Council October 25, 2004 Regular Meeting Page 13 • Finance Director Hansen stated that it is still on the bill, and he will look up the exact ending date for that and have it in his report for the next time they talk about the utility rates. Finance Director Hansen that the written Quarterly Report highlights pretty much everything, but that the General Fund is tracking pretty much on budget for the year. He said there will be a small surplus at the end of the year. He stated that the Park Dedication Fund had received $16,000 of donations for the Greenfield Park playground equipment. He stated that the Park Dedication Fund had received a $40,000 dedication fee from the Hidden Hollow developers and some other minor donations of $1,000-$2,000. He stated that about $250,000 could be sent to the state for reimbursement on the 2003 reconstruction project. 2. Golf Course Quarterly Report. Mary Burg of Bridges Golf Course gave the Quarterly Report, and stated that the anticipated revenue for the Bridges for 2004 is approximately $646,000, with the golf course being $517,000, the driving range $129,000, and the billboards $62,000. Ms. Burg stated that the community is very interested in knowing what is going to happen with the golf course and they want the Bridges to stay. She stated that they are about 25 to 30 percent above everyone else in the area as far as rounds of golf, and she anticipates that trend to continue. She stated that the money that is borrowed on the internal loans are not being tacked onto residential taxes, so that is a misunderstanding within the community. She stated the funds that • are borrowed will be paid back 100 percent and with interest. Ms. Burg gave an overview of the activities that have taken place at the golf course, and there was a further discussion regarding the finances of the golf course. 3. Citizen Survey Information. Council Member Gunn stated that it was interesting that the more people you survey, the accuracy drops. Council Member Marty stated that this isn't a pressing issue, so perhaps they should wait until after the election. He stated that they should do a full city-wide survey using some of the questions from Park and Recreation, these two questions, and talk to the survey company about other issues they are looking at. Mayor Linke suggested going to the last survey and pulling some of those questions off to update their information. Council Member Quick stated that they had to fine tune this. He stated they would be taking another hit on aid, and they need to find out what the mood is out there. • MOTION/SECOND. Quick/Gunn. To direct staff to expand the survey in scope to cover the ideas brought up during this discussion. Mounds View City Council October 25, 2004 Regular Meeting Page 14 • Council Member Gunn suggested discussing this at the next Work Session. Council Member Stigney suggested looking at alternate ways of conducting this rather than spending the money on a survey, and he suggested postponing it until after the election. MOTION. Stigney. To postpone this item. Mayor Linke stated that the motion dies for lack of a second. Nays-1(Stigney) Motion carried. Ayes-4 Council Member Stigney stated that Council Member Quick keeps mentioning the original survey where 90 percent of the people supported the golf coursed, and he would like a copy of that survey. Director Ericson stated he would provide that if they have the information. C. City Attorney • None. 13. Negt Council Work Session: Nezt Council Meeting: 14. ADJOURNMENT Monday, November 1, 2004. Monday, November 8, 2004, at 7:00 p.m. Mayor Linke adjourned the meeting at 9:40 p.m. Transcribed and recorded by: Sheree Theobald Timesaver Off Site Secretarial, Inc. •