Loading...
HomeMy WebLinkAboutMinutes - 2009/08/10• PROCEEDINGS OF THE MOUNDS VIEW CITY COUNCIL CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOT Regular Meeting August 10, 2009 Mounds View City Hall 2401 Highway 10, Mounds View, MN 55112 7:01 P.M. 1. MEETING IS CALLED TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL: Flaherty, Stigney, Hull, Mueller, Gunn. NOT PRESENT: None. 4. APPROVAL OF AGENDA A. Monday, August 10, 2009, City Council Agenda. • MOTION/SECOND: Mueller/Hull. To Approve the Monday, August 10, 2009, agenda as presented. Ayes - 5 Nays - 0 Motion carried. 5. PUBLIC INPUT Dan Mueller, 8343 Groveland Road, stated his concern with increased traffic and speeds on Crroveland Road due to the reconstruction of Red Oak Drive. He stated the speed trailer has not been of benefit and asked that police cars visit the neighborhood to ticket speeding traffic. 6. SPECIAL ORDER OF BUSINESS None. 7. COUNCIL BUSINESS A. 7:05 p.m. Public Hearing: Second Reading and Adoption of Ordinance 824, Adopting a Five Year Financial Plan (for years 2010 thru 2014). Finance Director Beer noted the City Charter requires that afive-year financial plan be prepared annually, presented at a public hearing, and adopted by ordinance. This ordinance was • introduced in July of 2009. He explained the increase in the general fund for streets and that the utility fund adjustments will equal 8.5 percent to 9.5 percent. Finance Director Beer stated the Mounds View City Council August 10, 2009 Regular Meeting Page 2 • utility rate increases are as follows: water rates of $8/year, sanitary sewer of $4/year, and storm water of $4/year. These increases are needed due to capital improvement projects for waterline improvements. Finance Director Beer requested the Council approve ordinance publication by summary Mayor Flaherty opened the public hearing at 7:12 p.m. Mike Reed, 2208 Lois Drive, asked if he could get a separate water meter for his lawn. Finance Director Beer explained that the sanitary sewer rate is not charged based on summer lawn sprinkling. Dan Mueller, 8343 Groveland Road, stated he did not agree with reducing the franchise fee by one-quarter percent and asked if doing so resulted in the need for the levy increase. He noted that businesses can use the franchise fee as a legitimate tax deduction; however, that is not the case for residents. Finance Director Beer stated the street financing plan anticipated $400,000 for ten years and is not related to the franchise fee. The franchise fee equaled $18,000 to $19,000 per year and the City has cut expenses to offset that loss in revenue. Hearing no additional public input, Mayor Flaherty closed the public hearing at 7:18 p.m. Council Member Mueller stated her appreciation to staff for looking at expenditures and asked them to monitor repair costs on older vehicles should they become excessive and need to be replaced. Finance Director Beer explained the 1996 and 1994 vehicles have already been replaced but are still being used as extra vehicles and to transport seasonal workers. Council Member Mueller asked what type of expenditures would come from the Miscellaneous Fund. Finance Director Beer explained it is used for expenses like retirement severance and storm damage cleanup costs. Mayor Flaherty noted that expenditures in the Capital Improvement Plan are considered by the Council prior to purchase. MOTION/SECOND: Flaherty/Gunn. To Waive the Second Reading and Adopt Ordinance 824, Adopting a Five Year Financial Plan for 2010 Thru 2014, Authorize Publication by Summary, and Posting on the City's Website. ROLL CALL: Stigney/Hull/Mueller/Gunn/Flaherty. Ayes - 5 Nays - 0 Motion carried. B. Resolution 7483, Approving the Articles of Incorporation and By-Laws Authorizing the Establishment of and Mounds View's Participation in a New Regional Convention and Visitors Bureau. Economic Development Specialist Steinmetz reviewed that previously the Council and six other Mounds View City Council August 10, 2009 Regular Meeting Page 3 municipalities had decided to leave the local Convention and Visitor's Bureau (CVB), Visit Minneapolis North (VMN), and join a new CVB that would represent these seven municipalities. She explained how fees are collected to fund the CVB and recommended adoption of the draft resolution to approve the updated Articles of Incorporation and By-Laws to establish the CVB. Council Member Mueller noted Page 5, Incorporator, identifies the name and address for the Coon Rapids City Administrator. Economic Development Specialist Steinmetz explained that person is taking the lead in this matter and it is a formality. MOTION/SECOND: Gunn/Hull. To Waive the Reading and Adopt Resolution 7483, Approving the Articles of Incorporation and By-Laws Authorizing the Establishment of and Mounds View's Participation in a new Regional Convention and Visitor's Bureau. Mayor Flaherty explained this action will start the process and not adopt the final By-Laws. Economic Development Specialist Steinmetz concurred and explained that each member City Council would provide input on who serves on the Board of Directors. The actual Board of Directors would finalize the By-Laws. Council Member Mueller noted Page 2, Powers, indicates reasonable compensation will be received for service rendered so a mechanism is in place to keep it under control. Clerk- Administrator Ericson stated each member city shares those concerns, will provide input on the selection of the Directors, and any compensation considered. Ayes - 5 Nays - 0 Motion carried. C. First Reading and Introduction of Ordinance 825, an Ordinance Implementing a Franchise Fee on Center Point Energy Natural Gas Operations within the City of Mounds View. Finance Director Beer explained the draft ordinance would continue the agreement with Center Point Energy to collect a franchise fee in the amount of 3.75% of its natural gas gross operating revenue for services within Mounds View during the year 2010. Finance Director Beer stated this company serves one Mounds View business and approval will assure consistent consideration with Xcel. It was noted the public hearing and second reading has been scheduled for August 24, 2009. Council Member Mueller stated resident Dan Mueller spoke to this issue earlier tonight. She noted the ordinance is written to collect a 3.75% franchise fee and stated her support to increase that fee to 4%. Finance Director Beer advised that the Charter limits the City's ability to increase fees and, in this case, it would be about 3.85%. MOTION/SECOND: Mueller/Gunn. To Waive the First Reading and Introduce Ordinance 825, An Ordinance Implementing a Franchise Fee on Center Point Energy Natural Gas Operations within the City of Mounds View, as amended to charge a 3.85% of its natural gas gross operating revenue for services in Mounds View during 2010. Mounds View City Council August 10, 2009 Regular Meeting Page 4 • Clerk-Administrator Ericson stated staff will calculate the exact maximum increase allowed by the Charter and present it at second reading. Council Member Hull asked why a yearly sunset provision was placed. Clerk-Administrator Ericson stated the original approval in 1992 was for 5 years and when it was re-approved, an annual adoption was added so the Council can review it each year. Council Member Stigney stated the annual sunset provision started so each Council could determine whether it was or was not needed. This fee was started to off set money going directly out of tax payer's pockets for tax exempt properties and, unfortunately, became relied on as another revenue source. He stated support to charge the maximum allowed by the Charter. Council Member Hull asked if business owners and the Chamber of Commerce disagreed with the franchise fee in 1992. Clerk-Administrator Ericson stated some business owners, but not an overwhelming number, did speak in 1992 against the franchise fee. Finance Director Beer explained the City views franchise fees as just one piece of the entire "package" that includes water and sewer rates, overall tax levy, and cost of business licensing. He advised that when looking at that "package," it is reasonable to do business in Mounds View. . Council Member Hull noted this is a regressive tax at a straight percentage so it may impact smaller businesses more than larger sized businesses. He asked what service taxpayers receive for this fee. Finance Director Beer stated it off sets the costs for fire and police protection, the park system, and maintaining a business code. Mayor Flaherty stated he voted to reduce the fee to 3.75% after business owners raised the issue that the fee was to have a sunset date. He noted when the City of Minneapolis imposed a liquor tax to build the Metro Dome, it was to have a sunset date but has never come off the books. Mayor Flaherty pointed out that Mounds View residents pay a franchise fee on water and sewer billing. Finance Director Beer estimated that slightly more in franchise fees is paid by the business community than by residents. Finance Director Beer noted the Street Plan relies on funding from the franchise fee so once the Street Plan has been completed, it would be the appropriate time to phase out the franchise fee. Council Member Stigney stated the biggest user of electricity is Medtronic and they also receive the biggest tax break but because of the City's small-sized business community, residents pay a larger portion. He noted the amount paid by the taxpayers is a direct offset to levied taxes for City services they receive. Council Member Stigney pointed out that taxpayers receive a better break if the fee is increased to where it should be and if the fee is not needed, then the levy should be reduced. Council Member Mueller stated a regressive fee can be described as something that effects everyone in the community equally, including nonprofits, and since all use electricity and pay a Mounds View City Council August 10, 2009 Regular Meeting Page 5 franchise fee, it impacts all equally. The difference is that a homeowner cannot deduct fees yet a business owner can do so. Council Member Mueller stated the City may need a fu114% franchise fee to complete the road and utility projects that have been planned. Mayor Flaherty stated the impact to the street funding mechanism was discussed last year and it was determined the franchise fee would have no impact because of the low percentage. He noted Area A came in $700,000 less than funded so that amount went into the bank. He explained that when considered as a percentage of the bill, the franchise fee may be a higher burden on a resident than a large sized business like Medtronic. Ayes - 3 Nays - 2 (Hull, Flaherty) Motion carried. D. First Reading and Introduction of Ordinance 826, an Ordinance Implementing a Franchise Fee on Xcel Electric and Natural Gas Operations within the City of Mounds View. L Finance Director Beer explained the draft ordinance would continue the agreement with Xcel Electric and Natural Gas Operations to collect a franchise fee in the amount of 3.75% of its natural gas gross operating revenue for services within Mounds View during the year 2010. Finance Director Beer advised that the current franchise agreement expires in 2012 so negotiations will probably start in a year or two. It was noted the public hearing and second reading has been scheduled for August 24, 2009. MOTION/SECOND: Gunn/Stigney. To Waive the First Reading and Introduce Ordinance 826, An Ordinance Implementing a Franchise Fee on Xcel Electric and Natural Gas Operations within the City of Mounds View, as amended to charge a 3.85% of its natural gas gross operating revenue for services in Mounds View during 2010. Council Member Stigney stated the taxpayer will find they pay less if the businesses also have to share the costs by paying a franchise fee. Ayes - 3 Nays - 2 (Hull, Flaherty) Motion carried. E. Resolution 7482, Authorizing Severance for Don Burda, Temporary Building Inspector. Assistant Clerk-Administrator Crane presented a recommendation to approve severance payment in the amount of $249.91 to Don Burda, who resigned as Mounds View's Temporary Building Inspector effective July 23, 2009, in accordance with the AFSCME Union Contract. MOTION/SECOND: Mueller/Stigney. To Waive the Reading and Adopt Resolution 7482, Approving Severance for Don Burda, Temporary Building Inspector. Mayor Flaherty thanked Mr. Burda for his years of service to Mounds View and wished him well in his retirement. Mounds View City Council August 10, 2009 Regular Meeting Page 6 Ayes - 5 Nays - 0 Motion carried. F. Resolution 7484, Accepting Bid Proposal from Max Steininger, Inc. for the County Road 10 Trail Segments 1-5 Project and Authorizing the Preparation and Execution of the Agreement for Construction Contract. Public Works Director DeBar reviewed the history of this project and presented the eight bid proposals received on July 23, 2009, to construct the County Road 10 Trail Segments 1-5, which ranged from $653,350.31 to $825,354.10. He noted the budget comes from two accounts. plus federal funding and explained how payment would be received from Mn/DOT. Public Works Director DeBar advised that the low bid was submitted by Max Steininger, Inc., and recommended adoption of the resolution. Public Works Director DeBar informed the Council of the contractor's request to stockpile materials for a construction yard near the Multi-Tech Systems property. He stated if the Council approves that request, the City Attorney recommends execution of a hold harmless agreement. Public Works Director DeBar described the location and amenities of Trail Segments 1-5 in the north boulevard of County Road 10 from County Road H to Red Oak Drive and noted a section near Walgreens has already been completed. MOTION/SECOND: Gunn/Mueller. To Waive the Reading and Adopt Resolution 7484, Accepting Bid Proposal from Max Steininger, Inc. for the County Road 10 Trail Segments 1-5 Project and Authorize the Preparation and Execution of the Agreement for Construction Contract. Mayor Flaherty noted engineering fees are about $175,000 and $1,275,000 was budgeted for this project so if the engineer's estimates are close, it will save about $400,000. Finance Director Beer stated those funds will remain in the TIF District. Mayor Flaherty asked about the $525,000 of federal aid. Joe Rhein, Consulting Engineer with Bonestroo, explained it is not a matching grant but the maximum cap that can be federally funded based on eligible work. He estimated that the project will use most of those funds. Ayes - 5 Nays - 0 Motion carried. MOTION/SECOND: Gunn/Mueller. To Authorize the Preparation and Execution of a Hold Harmless Indemnification Agreement for Early Deposit of Project Materials, with Max Steininger, Inc. covering all costs to draft such Agreement. Ayes - 5 Nays - 0 Motion carried. • Mounds View City Council August 10, 2009 Regular Meeting Page 7 G. First Reading and Introduction of Ordinance 833, an Ordinance Amending Chapter 1113.04 of the Zoning Code to add Car Washes as a Conditional Use in a B-2, Limited Business, Zoning District. Community Development Director Roberts presented the request of Leon Theis, owner of The Station at 2280 County Road I, to add a car wash to his fuel station, which is zoned B-2, Limited Business. The City Code only allows car washes as a conditional use in B-3, Highway Business, or higher zoning districts. Community Development Director Roberts presented the recommendation for approval by staff and the Planning Commission. He explained a revision made to the resolution to clarify the intent this is for B-2 zoned property that has a fuel station. It was noted that the public hearing and second reading is scheduled for August 24, 2009. MOTION/SECOND: Mueller/Gunn. To Waive the First Reading and Introduce Revised Ordinance 833, Amending Chapter 1113 of the Mounds View Zoning Code to add a Car Wash. As a conditional use in a B-2 Zoning District. Council Member Hull disclosed that he is an employee of the applicant and had abstained in 2007 when the applicant wanted to add two more pumps since there was a perception of a conflict of interest. However, he is not an owner and the City Attorney has advised there is no conflict of interest in this case or the previous case. Council Member Hull stated he sees many positives for the City and business and would not want to see it not go through. But, in this case, . only one person spoke against it and the Planning Commission recommended approval with a 6- 0vote so he will vote on the matter. Council Member Mueller stated this is a solid business that wants to provide a needed service to the community so she supports approval. Council Member Stigney stated his opinion that the perception of conflict exists for Council Member Hull who had indicated his vote was dependent upon "in case it might not go through." Council Member Stigney felt the car wash was too intense a use for the B-2 district and pointed out this consideration is limited to only one property. Mayor Flaherty stated he met with the owner to see the exact location of the car wash. He had been concerned about the sight lines from County Road I but that was put to rest when he understood the setback to be parallel to the front of Fedoras. Mayor Flaherty stated he remains concerned about the height of the building, disposal of the sudsy water, and ice control to assure there is not a buildup at the exit. Brad Leon, applicant, stated the building height is 12 feet and the first 15 feet of the entrance and exit is heated concrete to assure there is no ice buildup. Community Development Director Roberts stated the water is disposed in the sanitary sewer. • Council Member Mueller stated the car wash addition will allow this business to compete with other businesses. Mounds View City Council August 10, 2009 Regular Meeting Page 8 Council Member Stigney stated it will allow this business to compete with B-3 businesses even though it is zoned B-2, and this use is too intensive. Council Member Hull stated at the Work Session, there were doubts about the car wash but the Planning Commission is on board 100 percent, no residents have notified the City of opposition, and he believed it is a "no brainer." He noted the volume of traffic will not overly increase on County Road I since it will not add new business but regular traffic will be able to get a car wash. Council Member Stigney stated his opinion that Council Member Hull wants to ensure this application will pass since it was indicated at the Work Session that he (Council Member Stigney) would not support it and Mayor Flaherty had indicated he was unsure. Thus, Council Member Hull would have to vote to support to ensure passage. Ayes - 4 Nay - 1 (Stigney) Motion carried. 8. CONSENT AGENDA Mayor Flaherty asked to remove Item 8C. A. Licenses for Approval. B. Reschedule a Public Hearing for Monday, August 24, 2009 at 7:15 p.m. for the Second Reading and Adoption of the Following Zoning Code Amendments: 1. Ordinance 827, Revising Chapter 1104.01, Subd. Sc, of the Zoning Code to Remove the Word "decks" from Allowed Encroachments. 2. Ordinance 829, Amending Chapter 1111 of the Zoning Code to Remove R-O, Residential-Office Zoning District. 3. Ordinance 830, Amending Chapter 1116.02 of the Zoning Code to Allow a total of 800 Gallons of Flammable Liquid in Industrial Districts without a Conditional Use Permit (CUP). 4. Ordinance 831, Amending Chapter 1103.18 of the Zoning Code in Regards to Satellite Dishes. 5. Ordinance 833, Amending Chapter 1113.04 of the Zoning Code to Add Car Washes as a Conditional Use in B-2, Limited Business, Zoning Districts. f D. Schedule a Public Hearing for Monday, August 24, 2009 at 7:05 p.m. for the Second Reading and Adoption of Ordinance 825 Implementing a Franchise Fee on Center Point Energy. E. Schedule a Public Hearing for Monday, August 24, 2009 at 7:10 p.m. for the . Second Reading and Adoption of Ordinance 826 Implementing a Franchise Fee on Xcel Energy. Mounds View City Council August 10, 2009 Regular Meeting Page 9 • MOTION/SECOND: Mueller/Stigney. To Approve the Consent Agenda Items A, B, D, and E. Ayes - 5 Nays - 0 Motion carried. C. Resolution 7485, Approving a Charitable Gambling License for the Spring Lake Park Lions to conduct Charitable Gambling at Robert's Sports Bar and Entertainment. • Mayor Flaherty noted the Blaine Jaycees were in Robert's Sports Bar but moved out since there was no business. He asked if the Blaine and Spring Lake Park Lions work together. Assistant Clerk-Administrator Crane stated that is correct. MOTION/SECOND: Flaherty/Hull. To Waive the Reading and Approve Resolution 7485, Granting a Charitable Gambling Permit for the Spring Lake Park Lions to Conduct Charitable Gambling at Robert's Sports Bar and Entertainment in Mounds View. Council Member Mueller noted that the Mounds View Lions had an opportunity to conduct charitable gambling at this location and while they appreciated the opportunity, had no one to fill that location. Ayes - 5 Nays - 0 Motion carried. 9. JUST AND CORRECT CLAIMS Council Member Mueller referenced Page 4, Minneapolis North Visitor's Bureau Visit Minneapolis North, and commented that moving forward the same in/out entries will be reflected for the new Convention Visitors Bureau. Mayor Flaherty referenced Page 4, City of St. Paul, for street supplies. Public Works Director DeBar explained it is to patch streets. MOTION/SECOND: Gunn/Hull. To Approve the Just and Correct Claims as Presented. Ayes - 5 Nays - 0 Motion carried. 10. APPROVAL OF MINUTES None. 11. REPORTS A. Reports of Mayor and Council. Council Member Mueller updated the Council on the number and types of cars registered for the car show at the Festival in the Park. Mounds View City Council August 10, 2009 Regular Meeting Page 10 Council Member Gunn thanked the community, Police Department, and Fire Department for the success of National Night Out, with 27 neighborhood parties. Mayor Flaherty stated he also enjoyed attending National Night Out parties and commented on the great opportunity to meet your neighbors. Mayor Flaherty reported on the meeting he and Clerk-Administrator Ericson attended with five neighboring mayors and city administrators to discuss common issues. B. Reports of Staff. Clerk-Administrator Ericson advised that Kennedy and Graven is updating language in the Charitable Gambling License, the Transient Merchant Code, and Sign Code to assure consistency with State Statutes. The Council will also be considering the Kennedy and Graven contract at an upcoming meeting. 1. Finance Quarterly Report. Finance Director Beer presented the June 30, 2009, revenue, expenses, and investment reports. He stated staff has done a good job to keep expenses down and he anticipates the budget may end with a surplus if there are no unexpected expenses. 2. Survey Questions for the City Booth (Festival in the Park) Assistant Clerk-Administrator Crane presented the draft survey questions and described how they will be presented at the Festival. The Council discussed the questions related to dogs. Clerk-Administrator Ericson stated the question was raised about the need for a kennel license for three dogs since the same requirements exist whether a kennel license is or is not issued. Mayor Flaherty polled the Council and consensus was reached to ask if residents would accept three dogs without the requirement for a kennel license. 3. Announce Mounds View Festival in the Park: Saturday, August 22, 2009. Assistant Clerk-Administrator Crane reminded the community of the Festival in the Park on August 22, 2009, and detailed the activities that will occur. She also advised that the Festival Parade will be broadcast live on the City's community service channel. 4. Public Works Project Update. Public Works Director DeBar provided an update on Public Works projects and activities. Mounds View City Council August 10, 2009 Regular Meeting Page 11 i 5. Commendation of Police Department and Officers. Mayor Flaherty read a resident's letter commending the Police Department and added his appreciation. C. Reports of City Attorney. Noted. 12. Next Council Work Session: Next Council Meeting: City CounciUStaff Retreat: Tuesday, September 8, 2009, at 7:00 p.m. Monday, August 24, 2009, at 7:00 p.m. Monday, August 31, 2009 at 6:00 p.m. 13. ADJOURNMENT The meeting was adjourned at 9:28 p.m. Transcribed by: Carla Wirth Timesaver Off Site Secretarial, Inc. •