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HomeMy WebLinkAboutMinutes - 2006/02/13PROCEEDINGS OF THE MOUNDS VIEW CITY COUNCIL • CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA O 7 ~ D a~~ Regular Meeting February 13, 2006 New Brighton City Hall 803 Old Highway 8, New Brighton, MN 55112 7:10 P.M. 1. MEETING IS CALLED TO ORDER 2. PLEDGE OF ALLEGL~NCE 3. ROLL CALL: Marty, Stigney, Gunn, Flaherty, and Thomas NOT PRESENT: None. 4. APPROVAL OF AGENDA A. Monday, February 13, 2006 City Council Agenda • MOTION/SECOND: GUNN/FLAHERTY. To Approve the Monday, February 13, 2006 agenda as presented. Ayes - 5 Nays - 0 Motion carried. 5. PUBLIC INPUT None. 6. SPECLAL ORDER OF BUISNESS A. Presentation by Senator Betzold regarding the upcoming 2006 Legislative Session Mayor Marty welcomed Senator Don Betzold. Senator Don Betzold stated the legislative session will start on March 1, 2006 and pointed out that it is not a budget year. He noted that the budget forecast that came out in November predicted there would be a $700 million surplus for the time period ending June 30, 2007. He stated this is not really there because of delayed payments to the school districts. He stated the law says that the surplus must go back to paying school districts on time. He explained several r~ ~J Mounds View City Council February 13, 2006 Regular Meeting Page 2 • other items that may reduce this predicted surplus, and that it is unlikely there will be any funds remaining for Local Government Aid (LGA) or spending purposes. Senator Betzold stated there will be a bonding bill this year that will affect Mounds View due to the Medtronic project last year and minor corrections needed for language regarding County Road J. He commented that both Ramsey County and City staff are working on that language. He stated that a bill was pre-introduced by Senator Keith Langseth that is separate from the bonding bill to try to get it out as quickly as possible. Senator Betzold urged the City to contact him if there are other things that need to be brought to attention. Senator Betzold reviewed other issues coming up such as eminent domain, electronic waste recycling, clean water legacy, accessibility to drivers' license data, and stadium issues. He stated he would love to see attempts to reduce property tax increases, and the restoration of local government aid. Senator Betzold offered to answer questions, and noted he will be back at the end of the legislative session. Stan Meyer, 2812 Sherwood Road, asked what is being done to reduce spending. Senator Betzold responded that this was not a budget year and several spending cuts were done in previous years. He explained that of the State's budget, approximately one-half goes to education, one-fourth goes to human services (i.e. nursing homes), and another $1 billion goes to . corrections. He stated there are several demands on the State's budget. Mayor Marty asked Mr. Betzold if there will be special legislation to clean up County Road J. Senator Betzold responded that it was part of the bonding bill last year, and the language was not correct when the bonding bill was passed. He noted Senator Langseth is carrying a bill that is separate from the bonding bill that will address this. Mayor Marty asked if it will be on the table to start off the legislative session. Senator Betzold responded the Senate had pre-filing of bills that ended last week, and that nothing can be done until the legislative session starts on March 1, but the bill is out there and expects the companion bill to be introduced in the House. He commented that both the House and Senate will have the bills ready before the session begins. Mayor Marty stated he hoped the bill would be at the beginning of the session, because language problems were discovered and legislation is required to straighten it out. Senator Betzold responded he did not know how quickly the bill will be brought up because of the legislative session starting late and because the bills from the rural legislators will be discussed first. Councilmember Flaherty asked if there were further cuts expected for LGAs. Senator Betzold responded there is not unless the budget forecast shows a large deficit, but this is not expected. • Councilmember Flaherty mentioned that last year Mounds View had $0 for LGAs, and asked how realistic reinstatement is for the future. Senator Betzold explained that LGAs are mainly Mounds View City Council February 13, 2006 Regular Meeting Page 3 • received through income and sales tax, and it has been turned around and sent back to the local communities to keep down property taxes. He commented that not only was that cut in the 2003- 2004 biennium, but also a lot of state programs were cut, so cities lost state aid and had to raise property taxes. He stated the LGA funds did not get to the inner ring suburbs. Finance Director Beer stated Mounds View lost $900,000 in the last couple of years. Senator Betzold stated that he and Representative Bernardy will be hosting a town meeting at the Mounds View Community Center this Saturday from 10 a.m. to 12 p.m. and he will review information, answer questions and hear from citizens. 7. COUNCIL BUSINESS A. 7:05 p.m. Public Hearing and Consideration of a Modification to the Project Plan for the Mounds View Economic Development Project and the Proposed Modification of Taz Increment Financing District No. 5 Mayor Marty opened the public hearing at 7:25 p.m. Economic Development Director Backman explained Medtronic indicated it was time and cost effective for Medtronic to concurrently build Phase 1 & Phase 2 of the Medtronic CRM Headquarters in Mounds View. • Economic Development Director Backman stated that Ehlers & Associates prepared the financial analysis for the project modification. He stated there was an increase from 820,000 to 1.2 million square feet of building space, and an additional $30,400,000 in market value. He noted there will be $1.7 in new tax capacity upon project completion, and an increase in the TIF note from $14.8 to $22.9 million. Economic Development Director Backman explained that Medtronic requested 95% of the available tax increment from Phase 1 & Phase 2, which is the same percentage used in the current agreement. He stated Medtronic anticipates using the available increment of $22.9 million for structured parking which will cost Medtronic $32 million. He stated Medtronic will provide the City $545,000 for replacement of We114 or an equivalent project to ensure adequate water supply and $355,000 to the City Reconstruction Fund to offset potential traffic impacts on local roads due to the Medtronic project. Economic Development Director Backman stated Medtronic will continue to finance development costs upfront and receive tax increments on a pay as you go at the same interest rate. He noted fiscal disparities will be paid inside the district, the length of the TIF district would remain the same, and noted the largest single difference is the amount of costs allocated to structured parking. Kenneth Glidden, 5240 Edgewood Drive, asked who was accelerating Phase 2. Community Development Director Ericson stated the City of Mounds View did not initiate the acceleration of • Phase 2 into Phase 1 but, rather, the City was approached by Medtronic. Mounds View City Council February 13, 2006 Regular Meeting Page 4 • Mr. Glidden asked why the City is offering TIF assistance for the development since it appears to be a benefit to Medtronic to accelerate Phase 2. He stated he has not heard the financial benefit to the City of Mounds View and its taxpayers. He stated it is his understanding that Medtronic could spend up to an additional $3.5 million covering costs that Mounds View may have had in carrying out Phase 1 development. He asked what the trade-off is and what does anyone get for $3.5 million. He stated he has heard the lifespan of Phase 1 TIF would be shortened by five to six years, and asked why the number of years is important now when special legislation was held to offer TIF of 25 years. He stated it does not seem consistent between Phase 1 activity and Phase 2 activity. Councilmember Thomas stated the time period was extremely important in Phase 1, but the discussion about TIF is where the cap and limit came in. She stated even in Phase 1, the limit would allow the Council to shorten the TIF district in Phase 1. She noted a future Council may have approved TIF for Phase 2 at a later date, which would start a new TIF district time limit. She explained this allows them to go simultaneously so that whole proposal for both districts is shrunken down to the time limits for Phase 1, which is when that is paid off. She stated it will probably be significantly earlier than the 25 years granted by legislation. Mayor Marty stated by legislation, Medtronic has ten years to apply for the next TIF district, so they could wait until 2015 to apply for Phase 2, so that would take Phase 2 out 25 years. He noted that this way, Phase 1 and Phase 2 are both scheduled to be paid off in 26 years. . Mr. Glidden asked if the TIF life span will be shortened by 50 years by accelerating Phase 2. Councilmember Thomas explained the 25 years would begin at the next start, not an additional 25 years on end of 25 years. She stated it would be a maximum of five to ten years. Mr. Glidden stated Medtronic will receive $8.1 million to help carry out Phase 2 development, and they end up with $8.1 million worth of property tax benefit that they utilize through the City in doing that development. He stated their risk is $3.5 million where the benefit is $8.1 million. He asked what the benefit is for the City of Mounds View. He stated the $96 million project does not do anything for him other than through the tax benefits from the business being in the City. He stated the City will receive $43,000 per year in property tax for 25 years. Mayor Marty stated $43,000 per year is administrative costs that the City gets and it will not reflect on residents' property taxes. Councilmember Thomas stated the assumption is that Medtronic is only getting $3.5 million of risk; however, Phase 2 is significantly larger than the $8 million in TIF it is asking for. She explained it is a $30 million increase in development and they are asking for $8 million. She stated Medtronic is putting a lot out there and not just getting $8 million from the City. Mr. Glidden stated that usually a City offers TIF to encourage development, and in this case, the • City is not trying to initiate the development. Mounds View City Council February 13, 2006 Regular Meeting Page 5 • Councilmember Gunn stated that the Council has to think of the City as a whole and not each resident individually, but rather all residents of the City, the business community, school districts, and everything else that goes along with living in a community. Barbara Haake, 3024 County Road I, stated the City is getting $355,000 for roads, but going underneath County Road 10 is going to run more than $400,000 for utilities. She noted Director Lee said it would cost $540,000 to fix We114, but indicated this was not a definite number. She stated if it would cost more than $540,000, there would be $200,000 remaining and for this, the City can get one mile of roadway. Ms. Hawke stated there is also an additional charge of $35,000 per year for fire protection only on Phase 1. She stated the additional cost for the larger development size would need to come out of general budget. Ms. Haake asked for the list of But-For statements that will give Medtronic the TIF of $8.1 million. She stated she believes that Medtronic will not pull out from Phase 1 and Phase 2 no matter what the City decides. She added they already bought 40 acres from the Minnesota Department of Transportation and spent $20 million to get County Road J upgraded, so they are heavily invested in the development. Councilmember Thomas stated Well 4 is separate from the discussion with the $355,000 for streets. She explained the only two items grouped together are the $400,000 for utilities and • $355,000 for streets. Councilmember Thomas noted Medtronic is paying We114 per the Phase 2 terms. She noted the overruns from $355,000 are only for the utilities, and the estimates are coming back right at $400,000. Mayor Marty stated the estimates are coming in at slightly under $400,000. He added he checked with Director of Public Works Lee to clarify Well 4, and noted it was based on an engineering feasibility study, so it is a firm figure of $545,000. Sid Inman, Senior Vice President, Ehlers Associates, stated all Medtronic costs were reviewed including the unusual costs for structured parking, as these are very expensive in a first ring suburb. He stated he could not comment whether the same building would be built in Phase 2 as Medtronic is in the business of making money. He noted they looked at costs for all three phases with that in mind. Councilmember Thomas stated nobody has ever suggested Medtronic would pull out of Phase 1, as the But-For test is the first question that came to mind. She stated it is very subjective when discussing a development that is already in place. Councilmember Thomas stated she does not believe But-For assistance level would result in the same quality development. She stated the issue comes down to surfaced parking versus structured parking, and she does not believe it would be the same project if less funds were given to them. She stated the But-For is the quality of development received with the level of assistance. • Ms. Hawke stated she does not believe it is the Council's responsibility to give the But-Fors, Mounds View City Council February Z3, 2006 Regular Meeting Page 6 • rather that Medtronic would have to fill out the application. She asked if Medtronic could respond or present a written list of the But-For statements. Mayor Marty stated he asked at the EDA meeting for a copy of the TIF application that would include the But-For statements. He mentioned TIF applications were submitted to the Council in other development proposals, but with Medtronic Phase 1 development, he did not see or receive the TIF application although it was discussed. Councilmember Gunn stated on Appendix F in the Council packet includes But-For statements. Councilmember Flaherty reviewed Appendix F and stated the current market value of Phase 1 is $9.1 and the new market value with Phase 2 is $96 million. He stated the market value likely to occur without TIF is $62.6 million, so the But-For is $34 million. Mr. Inman stated the only statutory But-For requirement is to attempt to see whether value is created over and above the tax increment. He stated this requirement has been met. Mayor Marty referenced Appendix F regarding the $20 million bonding received from the State, which covers the transportation improvements for the development. Stan Meyer, 2812 Sherwood Road, stated he requested the percentage of ability to tax for Medtronic with and without Phase 1 and Phase 2, and recalled it is going up to 23%. He commented the City has been fiscally irresponsible regarding this project. He stated he sees no downside to wait on Phase 2 because Medtronic is not going anywhere because they already have so much invested into the development. Mr. Meyer stated the City should wait and see where the money will .come from. Mr. Meyer commented it sounds like the City is too much in love with the deal and afraid to let it go, which results in bad bargaining and a weak position. He noted the City is in a much stronger position, so the City should wait to see how much it will cost, because Medtronic is not going anywhere. He stated Medtronic is counting on the current Council because Medtronic does not know about the Council for the following years. He stated the Council is in a good bargaining position, and it does not have to give up $8.5 million because Medtronic is going to expand the development anyway. Mr. Meyer stated the Council needs to wait and have things settle before passing bonding or TIF district. He thought the purpose of TIF districts is to help small businesses to come into the community to hire people from the community. He stated there will not be any benefits to existing businesses because there are no businesses close to the project. Mr. Meyer stated the Council should be more responsible and the decision should be delayed and bargained for harder. Mayor Marry agreed that the City has a stronger bargaining capability since Medtronic already owns the property. • Dan Hall, 2200 Highway 10, stated he has already seen an increase in his business and Medtronic Mounds View City Council February 13, 2006 Regular Meeting Page 7 • is not even open yet. He stated Medtronic may want to use the Mounds View Banquet Center, which needs help getting filled. Mr. Hall commented that the issue it is not if Phase 2 will happen, but how big it will be. He referenced Mr. Inman's comment that there will be an extra $30 million in market value with providing the TIF. He stated it will only help the area if Phase 2 is accelerated. He noted Medtronic is paying 37 cents on every dollar in tax, so that means there is 63 cents on every dollar that goes back to the State of Minnesota, Mounds View, Ramsey County or state-wide. He explained the benefit is huge with $3,447,000 per year in non-captured tax revenue. Mr. Hall stated the buildings Medtronic is moving from are still going to be there. He stated that TIF is to keep the economy flourishing and moving. He stated it is likely that a world class company moving into the area will have spin-offs. He stressed that it is already affecting his business and he fully supports Medtronic in Mounds View. Director Ericson pointed out there are some handouts outside the Council chambers that address the tax increment information. David Jahnke, 8428 Eastwood Road, stated that the City is committed to Medtronic. He noted that in Fridley alone, there were 2,000 jobs added in a five-year time frame. He stated that a good business grows, and there are only benefits to be had in the long run for Mounds View. He asked why the City would want to stick Medtronic out four to five years just because they bought • the land. He thanked the Council members that voted for the Medtronic development and what they have done for Mounds View. Mayor Marry stated that the Council is not saying it is not going to negotiate, but it was the intention to negotiate a little harder to keep the extra TIF spent for Phase 2 as low as possible. He explained that the lower the City can keep the TIF, the faster the whole district can be paid off so that it can be on tax roles, which will directly affect every resident and every business owner. Mr. Jahnke stated that he does not like TIF financing, but realizes it is a fact of life. Brian Amundsen, 3048 Wooddale Drive, referenced the benefits summary of Phase 2 on the City's website, and stated he was concerned about the legislation that allowed for increments from the tax district that may be expended on areas located outside of the TIF district for sanitary sewer, sewer and water improvements. He stated this means the existing TIF allows for most of these benefits that are listed as Phase 2 benefits, and negotiations are not required because the benefits are already allowed under legislation. He commented the only thing that would modify legislation is if the benefit was limited in Phase 1. Mr. Amundsen referenced a report by City Administrator Ulrich and noted that billboard acquisition is a TIF eligible cost and may be paid from the increment in addition to billboard relocation, limited to $260,000. He stated it appears that the only summary benefit is the . $355,000 that Medtronic is going to make available to be used anywhere in the City. Mounds View City Council February 13, 2006 Regular Meeting Page 8 Mr. Amundsen stated the additional proportional amount would be closer to $6 million and added to the $3.5 million benefit, it would equal $9.5 million He stated it seems like what will end up happening is the renegotiation of benefits that are already in the TIF agreement. He suggested that it would be reasonable to leave the TIF percentage as it is. Mr. Amundsen stated he is not clear as to what the Council is approving, and if it is the same thing as what the EDA approved earlier, he is very disappointed in all members of the Council. He stated the EDA short circuited and denied the public's ability to provide consent and advice. He stated the acting members of the EDA have already voted and he recommended considering revisiting how the EDA is established. Mr. Amundsen stated the members are not going to change their .attitudes from the EDA to the Council. He pointed out the EDA and Council are separate authorities under government law, but the same people are involved. He suggested it be put on the agenda to review how EDA authority is seated and ways to improve so there is a less direct connection to the City Council. Mayor Marty stated the Council is approving the modification of the TIF and asked Director Ericson to address the utility portion for $3.5 million. Mayor Marry stated he felt that it all should come out of Medtronic's portion of the TIF. He stated the City can use TIF for this, but it will come out of the City's 5% administrative fees. Director Ericson stated the billboard buyout, billboard relocation and utilities are all TIF eligible. He stated Phase 1 qualified expenses or reimbursable expenses exceeded the available increment • by $13 million. He commented there was a total of $25 million of qualified expenses. He stated whether they were qualified expenses or not, there were significant expenses above and beyond what could be repaid with the increment that was generated by the project. He stated the City was not reimbursed from available TIF for billboard buyout, billboard relocation or utility expenses, but they were not part of the original agreement. Director Ericson stated the City is trying to get Medtronic to pay these costs in Phase 2. He also stated the qualified expenses for Phase 2 for the structured parking will exceed the available increment. He commented that the billboard buyout, billboard relocation and utilities are all qualified costs under TIF expenses, but there are so many qualified costs that those dollars are above and beyond what can be repaid with the increment that will be generated from the project. Mayor Marly closed the public hearing at 8:13 p.m. MOTION/SECOND: STIGNEY/THOMAS. To waive the reading and adopt Resolution 6745 adopting Modifcation to the Project Plan for the Mounds View Economic Development Project and the Proposed Modification of Tax Increment Financing District No. 5. Councilmember Stigney stated his support and noted there already has been improvement with the tax levy of 0% and this is a direct result of Mounds View buying out the golf course. Mayor Marty stated he does not feel that Medtronic is a prisoner and the City is holding it over them to not give them anything. He stated he is trying to get the City to negotiate what it can. He stated they own property and are residents of Mounds View. He stated his goal is to try to get Mounds View City Council February 13, 2006 Regular Meeting Page 9 • the property back on the tax rolls so it will affect every citizen in Mounds View as quickly as possible. He explained that it is an economic development district that is capped at eight years, and it will be a total of nine or ten years before it gets on the tax rolls. Mayor Marry stated the City went to the Capitol to obtain legislation to extend the district an additional 17 years. He stated that a downfall to this issue is that citizens will be locked into tax servitude unti12033 or until the district is paid off. He stated he hoped the district would be paid off sooner if the TIF was limited on Phase 2. He stated he felt with Phase 1 that the negotiations were done as a part of the sale of property. He stated with Phase 2, Medtronic is already here so the City had more leverage to keep the amount of TIF and interest as low as possible to get it back on tax rolls. He stated once the TIF district expires, not only will the City of Mounds View get in excess of $500,000 per year, but the school district will also reap countless benefits. He stated this will also affect everyone in Ramsey County with the tax dollars it will receive. He stressed that he wanted to try to get Medtronic on the tax rolls and off the TIF rolls as quickly as possible. Mayor Marty reviewed that Phase 1 capped Medtronic TIF of $14.8 million and additional interest to be paid of $16.9 million to total $31.7 million. He reviewed that Phase 2 had an additional $8.1 million of TIF so it jumps from $14.8 to $22.9 million, and there will be additional interest of $21.3 million to total of $44.2 million. Mayor Marty. stated the City could be capturing a portion of the money here instead of assisting • Medtronic. He stated Medtronic is financially sound and they would likely go ahead and build the first class facility even without TIF assistance. He stated he does not think this would have been a major deterrent for Medtronic, and that he would have liked to negotiate some more on this. He mentioned that if they decreased the additional TIF from $8.1 million to $4 million, the sum total of the TIF note principal would have been $18.8 million to be paid off in 2028 at $80 per square foot per the minimum assessment agreement. He stated if the assessment agreement comes in at $100 per square foot from Ramsey County, then at $4 million in additional TIF for Phase 2, it would be paid off in 15.5 years. He stated the interest and funds from the special fund levy reduction fund from the sale of the land has resulted in no increase in property taxes. He stated that once Medtronic is actually on the tax rolls, the City could possibly lower property taxes. Councilmember Thomas stated the Council has gone back and forth on these terms and pointed out that there have been extensive negotiations and discussion. Mayor Marty agreed that there have been negotiations and discussions about this, but wanted to stress that the City should have held on a little tighter to see what could have been done. Councilmember Flaherty stated it cannot be assumed there will be someone sitting in the wings to put in another $96 million project. He stressed to remember where the City was at with the golf course that was costing the taxpayers money. He pointed out that the City passed the $0 • levy parcel because of Medtronic. Mounds View City Council February 13, 2006 Regular Meeting Page 10 • Councilmember Stigney stated the Phase 1 franchise fee is $80,000 per year and with Phase 2, this will increase to $120,000 per year. He stated the whole purpose is not to increase taxes and that has been accomplished with the levy reduction fund. He commented the City should be able to accomplish that each and every year to come. Ayes - 4 Nays - 1 (Marty) Motion carried. B. Resolution 6729 Authorizing to Advertise the Cable Tech/Communications Coordinator. City Administrator Ulrich stated that there was a need for a Communications Coordinator position/ Cable Technician in the Administration Department. He explained this position would be a full time exempt position, and this new position was established to assist in City communications to include cable television support, web page updates, and the City newsletter. MOTION/SECOND: GUNK/FLAHERTY. To waive the reading and adopt Resolution 6729 Authorizing to Advertise the Cable Tech/Communications Coordinator. Councilmember Flaherty asked if there would there be enough time for the new position that is starting on April 12 to set up the cable system since the move to the new City Hall is scheduled for April 15. • City Administrator Ulrich stated there will be part time staff that know the ropes and can help acclimate the new position to the job. He stated he was comfortable with this. Councilmember Stigney stated he was uncomfortable with increasing money out of the general fund for this position. He stated he thinks the City should keep a part time or 3/4 time cable person as opposed to expanding costs to taxpayers to help fund this position. City Administrator Ulrich stated he understood the point, but emphasized this position was included in the 2006 general fund budget as presented. Councilmember Stigney stated there are things in the budget that he does not think should be in there, and that the position could be accomplished in a different form. Mayor Marty stated that he understood and sees where Councilmember Stigney is coming from with salary and benefits going up every year; however, this individual will be in charge of keeping the website current as well as handle any news releases or press releases from the City. He added that it would be beneficial to have one person to coordinate all communication coming out of the City. Mayor Marty added that there is room for improvement in the cablecasts. He stated that the part-time employees are keeping things going and are doing a good job; however, the City needs an effective and efficient coordinator to coordinate everything. He added there will be additional duties and responsibilities added to the position. • Ayes - 4 Nays - 1 (Stigney) Motion carried. Mounds View City Council February 13, 2006 Regular Meeting Page 11 C. Resolution 6730 Awarding the Contract for the Purchase of Furniture and Futures for the City Hall Remodel Project Police Chief Sommer stated that four proposals were obtained from office product-workspace vendors for the furniture and fixtures for the City Hall renovation project. He stated staff recommends authorizing the furniture proposal to General Office Products, utilizing the State of Minnesota contract (approximately 80%) and GSA pricing in the amount of $61,525 for the entire City HaI1. He stated staff requests authority to dispose of the furniture that will not be utilized in the remodel project. Mayor Marty stated he called Director Lee that referred him to Police Chief Sommer who volunteered to do this project. Police Chief Sommer reviewed costs incurred by other cities for furniture and fixtures, which included the New Brighton Police Department Public Safety Department that spent $250,000 and the Centennial Lakes Police Department that spent $80,000. Police Chief Sommer stressed that he focused on making a decision that was economic as possible and one that would provide efficient setup. He noted the current Police Department furniture was obtained for free or discarded from other City departments. Mayor Marry stated that the City is within budget and is only buying things that are essential for • the City Hall project. He recognized it was very frugal on the part of Police Chief Sommer and department heads to outfit the entire City Ha11 for only $61,525. The Council thanked Police Chief Sommer for his work on the project. Mayor Marty stated he appreciated the extensiveness of the report, but indicated the level of detail was not required in the future. MOTION/SECOND: THOMAS/FLAHERTY. To waive the reading and adopt Resolution 6730 Awarding the Contract for the Purchase of Furniture and Fixtures for the City Hall Remodel Project. Ayes - 5 Nays - 0 Motion carried. Mayor Marty thanked Police Chief Sommer. D. Resolution 6731 Severance Payment for Ken Manthis, Former Bridges Clubhouse Manager City Administrator Ulrich explained that Ken Manthis was hired by the City as the Clubhouse Manager/Instructor and was laid off due to the golf course redevelopment. He reviewed the • details of the severance payment. He stated that Staff recommends severance payment for Ken Manthis in accordance with Section 4.35D of the City's Personnel Manual and Resolution 6585. Mounds View-City Council February 13, 2006 Regular Meeting Page 12 • MOTION/SECOND: THOMAS/GUNN. To waive the reading and adopt Resolution 6731 Severance Payment for Ken Manthis, Former Bridges Clubhouse Manager. Ayes - 5 Nays - 0 Motion carried. E. Resolution 6732 Authorizing a Request for Proposals (RFP) for a Mounds View Salary Compensation Study and Pay Equity Report. City Administrator Ulrich reviewed a RFP for a Mounds View Salary Compensation Study and Pay Equity Report was discussed at the last Human Resources Committee and at the February Work Session on January 30, 2006. He stated the RFP should be reviewed and appropriate changes made if necessary. He stated Staff recommends adopting Resolution 6732 approving the RFP for Position Classification/Salary Compensation System and authorizing its distribution. MOTION/SECOND: FLAHERTY/MARTY. To waive the reading and adopt Resolution 6732 Authorizing a Request for Proposals (RFP) for a Mounds View Salary Compensation Study and Pay Equity Report. Ayes - 5 Nays - 0 Motion carried. F. Resolution 6733 Authorizing the Abatement of Nuisance Conditions at 2408- • 2410 County Road I Community Development Director Ericson explained that on December 28, 2005 a notice of violation was issued and served upon the responsible parties for violations of the City Code present at 2408-10 County Rd I, AKA Sam's Food Market and a self serve laundry. Staff recommends approval of Resolution 6733, authorizing abatement of nuisance conditions present at 2408-10 County Rd I. Councilmember Flaherty asked if there is a specific date the violation needs to be addressed by. Director Ericson responded the date has elapsed. Councilmember Flaherty asked if there has there been any communication with the responsible parties. Director Ericson stated Building Inspector Anderson indicated no correspondence has been received and several attempts have been made to contact property owner. MOTION/SECOND: GUNN/THOMAS. To waive the reading and adopt Resolution 6733 Authorizing the Abatement of Nuisance Conditions at 2408-10 County Road I. Ayes - 5 Nays - 0 Motion carried. G. Resolution 6736 Approving Change Orders No. 1-3 and Authorizing a • Contract for Network Cabling for the City Hall Rehabilitation Project Mounds View City Council .February 13, 2006 Regular Meeting Page 13 • Director of Public Works Lee explained that there are minor adjustments, considered Architectural Supplemental Information (ASIs), required for the City Hall Rehabilitation Project. He stated these items are prevalent in remodel projects. He reviewed Change Orders 1-3 and three additional contracts for network cabling, communication cabling and security card reading system. He stated it is recommended the Council approve Change Orders 1-3 and authorize three additional contracts for the City Hall Rehabilitation Project. Councilmember Flaherty stated he does not like the words that it is inevitable that there will be additional costs. He asked what happened to the old punch keypad in the old building. Director of Public Works Lee stated the contractor accidentally removed the punch pad system off the door when the doors were removed in the old building. Mayor Marty stated the system will be located on both entrances of the Police Department. He stated these are necessary items to put in and will still remain within budget. MOTION/SECOND: THOMAS/FLAHERTY. To waive the reading and adopt Resolution 6736 Approving Change Orders No. 1-3 and Authorizing a Contract for Network Cabling for the City Hall Rehabilitation Project. Ayes - 5 Nays - 0 Motion carried. • H. Reconsideration of Resolution 6726 Awarding a Contract for the Installation of a Security Card Reading System at City Hall and the Community Center Director of Public Works Lee reviewed that the City Council approved Resolution 6726 awarding a contract for the installation of a security card reading system at City Hall and the Community Center. He noted at the Work Session, a request was made to bring this item back for reconsideration. He explained other cities were contacted to see how their security card reading system worked. He stated staff is looking for direction on whether the City Council is interested in reconsidering their vote on this resolution. Councilmember Flaherty asked if the system would be installed at the main entrance doors of City Hall and two of the doors at the Community Center. Director of Public Works Lee stated they were. Councilmember Flaherty asked if the cards work on interior doors. Director of Public Works Lee stated the proposal is just for the outside entrances. Councilmember Flaherty asked if the interior security doors will be a key. Director of Public Works Lee stated they would be. Councilmember Thomas stated there continues to be frustration even if there was not the expense . of keypads at doors. She stated that while everything is tore up, wires should be put in the building for potential future use. Mounds View City Council February 13, 2006 Regular Meeting Page 14 • Mayor Marty stated he feels it will be more cost effective and feasible to have staff determine what areas are more sensitive and those areas should get pre-wired to accommodate future need. He noted the City would not be paying for the actual system at this time. MOTION/SECOND: MARTY/THOMAS. To reconsider the January 23 original motion of Resolution 6726 Awarding a Contract for the Installation of a Security Card Reading System at City Hall and the Community Center. Councilmember Stigney stated he welcomed the idea to reconsider the original motion as he disapproves of the cost of $17,800 for four doors. He stated he could justify the cost at City Hall but did not see a reason for installing security card reading systems at the Community Center. Mayor Marty stated there have been more problems at the Community Center than at City Hall with keeping tracks of lost keys and making more keys. Ayes - 5 Nays - 0 Motion carried. MOTION/SECOND: MARTY/THOMAS. To waive the reading and adopt Resolution 6726 Awarding a Contract for the Installation of a Security Card Reading System at City Hall and the Community Center. • Mayor Marty stated the Resolution should be amended to state the staff will use discretion to determine possible future areas, doors, and/or access points that should be pre-wired while construction is going on. Mayor Marty pointed out it will be less expensive to install the additional wiring at this point. Councilmember Stigney stated the Council should find out the costs that are involved. Councilmember Thomas stated it is not going to be out of the realm of consideration, and it will be more expensive to do it later. Director of Public Works Lee recommends staff will obtain quotes for the service, and pointed out the timing may be such that staff cannot wait until the next Council meeting on February 27, so he will put together a memorandum listing the quotes. Mayor Marty asked when they are starting on the work. Director of Public Works Lee replied tomorrow. Councilmember Stigney clarified that he supported the motion to get additional wiring, but the Resolution ties it into the cost of $17,800 for the City Hall and Community Center and he does not support that. • Ayes - 4 Nays -1 (Stigney) Motion carried. Mounds View City Council February 13, 2006 Regular Meeting Page 15 • I. Resolution 6740 Awarding a Construction Contract for the Random Park Building Replacement Project Director of Public Works Lee explained that the City Council approved the plans and specifications for the Random Park Building Replacement Project and authorized the advertisement for bids. He explained that the Council also approved an alternate design for the parking lot. Director of Public Works Lee noted that six bids were received and low bids were reviewed. He stated that staff recommends awarding the contract to Jay Bros. Incorporated for the Random Park Building Replacement Project. Staff recommends bid alternate B because of less grading needed, addition of four parking stalls and lower cost than Bid Alternate A. Councilmember Flaherty stated he preferred Bid Alternate B to control the traffic better. Councilmember Gunn stated she preferred Bid Alternate B to bring traffic away from playground, as it has always been a concern for her. Director of Public Works Lee stated Staff has contacted the property owners adjacent to the south and they do not have any issues with Bid Alternate B. Mayor Marty stated his only concern was if the residents in area would have concern, and since • they do not, Alternate B is a better all-around plan with site work needed and a bigger parking lot. MOTION/SECOND: THOMAS/GLTNN. To waive the reading and adopt Resolution 6740 Awarding a Construction Contract for the Random Park Building Replacement Project. Councilmember Stigney stated it was a shame the bid from Olympic Construction fell through as it went from $186,000 to $244,000. City Attorney Riggs stated that based on information that the City has, there were clearly some irregularities with the lowest bid. Ayes - 5 Nays - 0 Motion carried. J. Resolution 6737 Supporting the County Road 10 Trailway Project and Consequent Department of Natural Resources Trailway Grant Application Director of Public Works Lee explained that the City Council adopted a resolution authorizing the preparation of a preliminary feasibility report and the selection of a consultant for the County Road 10 Trailway, Lighting, and Landscape Project. He noted it is recommended the City Council approve a resolution supporting the County Road 10 Trailway Project and consequent . Department of Natural Resources trailway grant application. Mounds View City Council February 13, 2006. Regular Meeting Page 16 • Director of Public Works Lee encouraged letters of support from citizens groups such as school districts, seniors groups, Parks and Recreation Commission, Rotary Club, Lions Club, etc. Mayor Marty stated an effort should be made to contact someone at each group to get a letter from them. He stressed that more letters from different organizations and groups will show support from the community in support of this. Director of Public Works Lee stated the grant is a maximum of $100,000 with matching City funds. MOTION/SECOND: GUNN/FLAHERTY. To waive the reading and adopt Resolution 6737 Supporting the County Road 10 Trailway Project and Consequent Department of Natural Resources Trailway Grant Application. Ayes - 5 Nays - 0 Motion carried. K. Resolution 6741 Setting a Public Improvement Hearing Date for the Silver Lake Road Sidewalk Project Director of Public Works Lee stated the City Council authorized the preparation of a Preliminary Feasibility Report and consultant selection for the Silver Lake Road Sidewalk Project. He explained this project is to construct a 6%2-foot wide concrete sidewalk along Silver Lake Road, • from County Road H to County Road I. He noted the construction of this sidewalk is consistent with City's Comprehensive Trail and Sidewalk Plan. Director of Public Works Lee stated it is recommended the City Council approve a resolution setting a Public Improvement Hearing date for the Silver Lake Road Sidewalk Project. Director of Public Works Lee stated February 27, 2006 will be the date of the public hearing, and that information will be put on the website for interested parties to learn more about the project. Director of Public Works Lee stated there were 17 people in attendance at the neighborhood meeting with positive support for a sidewalk along the corridor. He stated the main question was if the sidewalk should be on the east or west side of Silver Lake Road. He explained the feedback has not been received regarding what side the sidewalk should be on from those who attended the neighborhood meeting. Brian Amundsen, 3048 Wooddale Drive, stated he works with school district on bussing issues and noted that students are walking along this part of Silver Lake Road. He stated the City should work with the school district to maximize safety with students using sidewalk. MOTION/SECOND: MARTY/STIGNEY. To waive the reading and adopt Resolution 6741 Setting a Public Improvement Hearing Date for the Silver Lake Road Sidewalk Project. . Ayes - 5 Nays - 0 Motion carried. Mounds View City Council February 13, 2006 Regular Meeting Page 17 • L. Resolution 6743 Adopting City Vision and Mission Statement, Goals Program, Values Statement, Rules of Conduct, and Action Plan City Administrator Ulrich explained the City Council and department heads held a "leadership - planning -team building" retreat on February 6 and 7, 2006. He noted over the two evenings of the retreat, the Council and Department Heads discussed the past, present and future, and responded with revised organizational goals and an action plan to respond to the opportunities facing the City of Mounds View over the next two years. He reviewed the Vision and Mission statements, as well as the top ten goals of the City. City Administrator Ulrich stated it is recommended that the Council formally adopt the City Vision and Mission Statement, Goals Program, Values Statement, Rules of Conduct, and Action Plan. City Administrator Ulrich mentioned that the Vision and Mission Statement will be displayed prominently at City Hall and signed by each City Council member. Mayor Marty suggested a goals timeline could be placed somewhere in City Hall such as the Council Chambers to easily show where the Council is at with each goal. City Administrator Ulrich stated a display board could be in the lobby or on the Council Chambers wall. Councilmember Flaherty stated a visual reminder of goals is a good thing to keep on the forefront so residents see them and can ask where the Council is at with the goals. Mayor Marty suggested the goals could be posted on the wall for the town hall meeting so people could see what the Council has planned along with the timelines for different goals or projects. He stated it would be good to display something on the wall as a reminder. City Administrator Ulrich stated this should be emphasized at the town meeting. Brian Amundsen, 3048 Wooddale Drive, commented that when looking through the action plan in the public book, and asked if any of the action plans would preclude citizen initiation on goals and activities. He asked how the Council will address citizens' goals and initiatives. Mayor Marty stated if there is a citizens' group with a positive petition, then the project would already be over a lot of hurdles and the project can get moving right away. He stated it depends on what the petition is for and it may move to a higher priority over the Council's action plan. Councilmember Gunn stated the only thing that might hold it up is a different area because as the Council is trying to group areas to save money. Councilmember Thomas stated that absolutely nothing is precluded, and anything by petition will be and needs to be addressed. • Mounds View City Council February 13, 2006 Regular Meeting Page 18 • Councilmember Flaherty stated the City Council encourages citizens to form action groups to help the City meet its goals and establish new ones. Mr. Amundsen stated he was leaning towards street projects and also that the Council should review the EDA establishment as far as what authority it has and how it is established. Councilmember Flaherty asked if the EDA is a direct relationship from the charter. Mr. Amundsen stated the EDA is established under state statute, and there are restrictions that might not have been established. He explained the City Council does not govern the EDA. Councilmember Thomas stated that by no means does the Council think there are only ten things to accomplish this year, but rather these are the top ten priorities. Councilmember Stigney stated he would be happy to hear citizens' comments and review citizens' petitions. MOTION/SECOND: GLJNN/THOMAS. To waive the reading and adopt Resolution 6743 Adopting City Vision and Mission Statement, Goals Program, Values Statement, Rules of Conduct, and Action Plan. Councilmember Stigney asked if all ten goals have the majority of City Council support. Mayor • Marty stated there was Council consensus. Councilmember Stigney referenced Goal 10 to make the Mounds View Community Center self- sufficient and asked if this meant financially self-supporting or if these are two different terms. Mayor Marty asked how goal 10 can possibly fit in with possible recommendations. He stated he understood it to mean self-supporting. Councilmember Gunn stated she took it to mean both self-supporting and self-sufficient. She explained something should be in the Community Center that would make it more usable and more often used to provide more function for the City. Councilmember Thomas stated the task force will bring a recommendation to the Council for what the Community Center should be used for or how it should be adapted. She stated the Council will take the recommendation and make the decision. Mayor Marty stated there have been good discussions regarding the Community Center and he is impressed with the brainstorming that has taken place. Councilmember Stigney asked the Council members if they believed the goal regarding the Community Center should read "financially self-supportive". Councilmember Thomas said she would not support that change. Mounds View City Council February 13, 2006 Regular Meeting Page 19 Mayor Marty stated it was not specified. Councilmember Thomas stated it would be self-sufficient if it accomplished its purpose without extra general funds subsidy. She stated it would need to fulfill its budgetary requirement without having a subsidy in addition. City Administrator Ulrich suggested that self-sufficient means financially self-supporting, and it would pay for itself as much as possible. He suggested that the Council bring forward ideas of how to increase self-supportiveness, and the Community Center task force will also look its future. Councilmember Gunn stated it should be self-supporting but it also should function as more of a community center and being self-sufficient in meeting the goals of the community. She stated the purpose of the Community Center is to serve the community and be self-supporting. Councilmember Thomas stated there are different implications of self-supporting and self- sufficient and she prefers the current wording. Mayor Marty concurred. City Administrator Ulrich stated that it can be self-sufficient without being self-supporting, such as receiving a subsidy from another source. • Councilmember Gunn stated it is an outside source that funds are still being put into by the City. Councilmember Stigney referenced the rules of conduct, and stated that they were not really discussed too much at the retreat. He mentioned he has a problem with the wording or interpretation of Rule 8, which states the City Council has authority to criticize or discipline anyone. Mayor Marty asked if there was Council consensus to take out the language of "and discipline". The Council concurred. Ayes - 5 Nays - 0 Motion carried. 8. CONSENT AGENDA Councilmember Stigney asked to remove Item E, I, and J. Mayor Marty asked to remove Item G. A. Licenses for Approval B. Resolution 6727 Approval to Purchase on Replacement Squad Car, and One Replacement Administrative Staff Car for the Police Department. C. Resolution 6728 Authorizing to Advertise for a Police Officer Position. D. Set a Public Hearing for Monday, February 27, 2006 at 7:05 pm to Consider • an Amendment to the Belting Office PUD. Mounds View City Council February 13, 2006 Regular Meeting Page 20 • ~~ D..n..l„t;..,, ~^I2C A,,,,,...,z;,.., +i,., A,,...l,..no ~~'.. Do„1.,..0,,.0,.+ 1_T__n„ :' ~isII F. Resolution 6738 Acceptance and Final Payment Approval for the Hidden Hollow Street and Utility Improvement Project V. D 1„ti.. !"72U A, 41... +1. D,. .,tii. ..~' D,..,1;,., „n,.,z Tinny. ':;++z H. Resolution 6742 Approving a Contract Extension for the 2006 Tree Removal Program K. Resolution 6746 Authorizing Execution of the County Road J Improvement Plans MOTION/SECOND: GUNN/STIGNEY. To Approve Items A-D, F, H, and K on the Consent Agenda. Ayes - 5 Nays - 0 Motion carried. 8E. Resolution 6735 Approving the Purchase of a Replacement 1-Ton Truck with Dump Box • Councilmember Stigney asked if the dump box could be removed from the Chevrolet and put on the Ford. Public Works Supervisor Pittman stated the box was rusted out and cannot be reused. Mayor Marty stated it is amazing to get a truck like this through State bids at this price. Public Works Supervisor Pittman stated he called the Chevrolet dealer and was informed the resell price of this vehicle is low because it runs on propane. MOTION/SECOND: GiJNN/STIGNEY. To waive the reading and adopt Resolution 6735 Approving the Purchase of a Replacement 1-Ton Truck with Dump Box. Ayes - 5 Nays - 0 Motion carried. 8G. Resolution 6739 Approving the Preparation of a Preliminary Feasibility Report and Consultant Selection for the Hidden Hollow South Street and Utility Installation Project Mayor Marty stated he noted this item has not come to the Council and asked why the City would pay for this feasibility study. Community Development Director Ericson stated the City Council would not be paying for it, as the developer will be providing the funds to cover the • expenses. Mounds View City Council February 13, 2006 Regular Meeting Page 21 • Director of Public Works Lee stated the study is for construction of publicly constructed street and utility connections. He explained the development signed a petition for public improvements and has submitted security to the City to assure payment to pay upfront. Mayor Marty asked stated that the area was built up high and not low-lined. He wondered what the impact would be on some of the other lower properties. He asked if the feasibility study would show this. Director of Public Works Lee stated the feasibility study would only show utilities. He noted the preliminary grading plan submitted shows drainage from the property and what happens to it when it runs off from the property. Mayor Marty stated it was acceptable to him if the development is willing to pay for the feasibility study. Director of Public Works Lee stated it will be handled identically to Hidden Hollow North's processes. MOTION/SECOND: FLAHERTY/STIGNEY. To waive the reading and adopt Resolution 6739 Approving the Preparation of a Preliminary Feasibility Report and Consultant Selection for the Hidden Hollow South Street and Utility Installation Project. Ayes - 5 Nays - 0 Motion carried. S 8I. Resolution 6744 Authorizing to Advertise and Contract for a Minute Taker for the Park and Recreation Forestry Commission Meetings Councilmember Stigney stated there is no real need to hire an outside minute taker for Park and Recreation Commission, and a member of the Commission should be elected to take minutes because it is not be the most effective use of staff time. Councilmember Thomas stated that all other Commissions are self sufficient in minutes recording and does not see a reason for this to change. Mayor Marty stated he concurred and advised Director of Public Works Lee to have the Commission elect a secretary to take the minutes. MOTION/SECOND: MARTY/GIJNN. To Deny Resolution 6744 to Advertise and Contract for a Minute Taker for the Park and Recreation and Forestry Commission Meetings Ayes - 5 Nays - 0 Motion carried. 8J. Resolution 6747 Authorize Acquisition of Staff Vehicle for Community Development • Councilmember Stigney referenced Item B of the Consent Agenda of replacing a squad and staff car for the Police Department and asked if one of these vehicles could be used for Community Mounds View City Council February 13, 2006 Regular Meeting Page 22 Development. Community Development Director Ericson stated he looked at that for the potential option, it was not recommended by the Police Chief and mechanic that it should not be used as a full time inspection vehicle. He stated the vehicle has served a useful life and it does not serve well as continuing as a full time staff vehicle. Councilmember Stigney suggested the vehicle could be used until no longer functional. Mayor Marty stated he is concerned that once the City buys something, in two years from now there could be a different Council. He stated the City should try and get two more years out of the vehicle. Director Ericson stated it is expected that the Taurus will need to be replaced within the next couple of years. He suggested that rather than replacing it, it could be eliminated from the inventory at the time it is replaced, and the department would already have the staff vehicle, which is being replaced now, and in two years from now when the additional staff person is not there, the department would not have the older Ford Taurus. Police Chief Sommer stated the old police chief car is twelve years old, and the squad car that is being replaced is not a reliable vehicle. • Councilmember Thomas stated that she the car is for trips around City limits and if it was getting to the point where it is not cost effective to put more money than its worth; however, if the car is used for a limited amount of time, she asked why the City would not try and stretch it out for two years. Councilmember Flaherty asked if a light duty pickup truck a replacement for the Taurus. He asked if the inspection vehicle could be the Taurus and the pick up truck be placed in the fleet now. Councilmember Gunn stated the vehicle needs to be heavy duty due to the condition of the sites. Director Ericson stated it is not really a comparable replacement, but purchasing a light duty Ford Ranger provides more flexibility and use for the department. He stated the Taurus would not be efficient in hauling anything, and the pickup truck provides additional flexibility in the fleet. Mr. Amundsen asked if the proposed vehicle for is for community development enforcement or if is specifically for the Medtronic project and if so, if it is TIF eligible. He asked if there were limits on funding types if it is TIF eligible. Finance Director Beer stated the pickup truck is not TIF eligible; however, it is funded out of the permit revenue generated from the Medtronic project. Public Works Supervisor Pittman stated the mechanic put used struts on the Taurus because he Mounds View City Council February 13, 2006 Regular Meeting Page 23 • could not justify buying new ones. He noted that the bottom of the vehicle is rusted out. MOTION/SECOND: MARTY/GUNN. To waive the reading and adopt Resolution 6747 to Authorize Acquisition of Staff Vehicle for Community Development Councilmember Stigney stated that the vehicle should be replaced when it breaks down. Mayor Marty suggested staff to determine if the Police Chief car is in better shape than the Taurus. Ayes - 4 Nays - 1 (Stigney) Motion carried. 9. JUST AND CORRECT CLAIMS MOTION/SECOND: THOMAS/FLAHERTY. To approve the Just and Correct Claims as presented. Ayes - 5 Nays - 0 Motion carried. 10. APPROVAL OF MINUTES A. January 23, 2006 City Council Meeting Minutes MOTION/SECOND: GUNN/THOMAS. To Ap rove the January 23, 2006 City Council P meeting minutes as corrected. Ayes - 5 Nays - 0 Motion carried. B. October 10, 2005 City Council Meeting Minutes MOTION/SECOND: MARTY/FLAHERTY. To Approve the October 10, 2005 City Council meeting minutes as corrected. Ayes - 5 Nays - 0 Motion carried. 11. REPORTS A. Reports of Mayor and Council Mayor Marty stated he attended mayor and manager meetings with City Administrator Ulrich and reported that the TCAAP site is tied up as well as the interchange at Highway 96 and Highway 10. • Councilmember Flaherty stated he spoke with Staff last summer about painting crosswalks on County Road I, but it has not been done Mounds View City Council February 13, 2006 Regular Meeting Page 24 • MOTION/SECOND: FLAHERTY/MARTY. To direct Public Works to paint crosswalks on County Road I. Ayes - 5 Nays - 0 Motion carried. Councilmember Gunn congratulated the Irondale Dance Line on reaching the state competition for the first time. She noted the competition is to be held this weekend at Xcel Energy Center. Councilmember Thomas recognized the principal of Irondale High School on receiving Principal of the Year by the Secondary Association. She noted this is a very prestigious award and the City is very lucky to have her. B. Reports of Staff 1. Police Department 2005 4th Quarter Report Police Chief Sommer presented the 4~' Quarter, 2005 Report and 2005 Year to Date reports. He reported that in 2005, the department issued 1,236 administrative offenses, 1,025 citations, responded to 7,150 911 calls, assigned 872 investigation cases for investigation, reported 1,070 serious crimes, and received an additiona15,019 miscellaneous calls and crime reports. He noted that the department received 115 medical calls and 101 alarm calls. • Police Chief Sommer noted that the most common crimes in the City are theft or fraud. Police Chief Sommer recognized School Resource/Security Officer Kurt Leech at Edgewood Middle School, and indicated the school purchased twelve two-way portable radios. Police Chief Sommer noted that a new D.A.R.E. officer was trained in and won top honors class as officer of the D.A.R.E. class. Police Chief Sommer reviewed a list of training courses that were undertaken by the department. Police Chief Sommer presented grants that were received by the department. Police Chief Sommer stated that the 800 MHz public communications system was still being constructed in the dispatch center in St. Paul as the building has not been constructed yet, and will not be fully operational until it is done. He explained the radio system will be available for limited use this summer. Police Chief Sommer explained that the Police Department is offering a Citizens Academy that is open to Mounds View residents that will consist of five-two hour training sessions. He mentioned that it will cover what is involved in being a police officer and what is involved with • the actual work. He added that the department also offers a DNR gun safety course that is very popular. Mounds View City Council February 13, 2006 Regular Meeting Page 25 • Police Chief Sommer presented a laser tool that is used for speed enforcement that allows the officer to look through a viewfinder and get the speed instantly. He noted it can pinpoint a car even in heavy traffic. Police Chief Sommer also provided a financial report summarizing the Police Department budget. Councilmember Flaherty asked what all the 872 cases consisted of since there are only two investigators. Police Chief Sommer responded some are administrative cases and they are not all active cases. 2. Finance 4th Quarter Report Finance Director Beer presented the 4ih Quarter, 2005 report and explained that numerous transactions remain to be posted, including interest earnings, transfers, and payables. He stated that once all transactions are posted, the general fund will have a positive balance for the year. Finance Director Beer explained that one of the issues to recognize is the recommendation by the State Auditor for the fund balance to be 35-50% of the anticipated expenditures. He noted the City will still be under 50% with no concerns from the State Auditor. He explained that most of the revenues are at or near budget, with the exceptions being the franchise fees, which exceed the • budget by approximately $50,000, as well as the investment earnings which considerably exceed the budget also. Finance Director Beer noted that even with the final expenditures, the general fund will still be below budget expenditures. Finance Director Beer explained that significant activity in the Community Center Fund resulted in a $261,000 deficit that still needs to be posted. He stated it needs to draw down fund balance to account for expenditures. Finance Director Beer explained that the sewer rate summary for 2004 was slightly lower than expected. He stated that the department continues to monitor funds and no rate increase is expected for 2006. Finance Director Beer stated the Bridges Golf Course was sold on October 24, 2006 and operations are terminated. He explained that outstanding bonds were called and retired. He noted the only outstanding items are the salary and severance for the remaining two employees, and that the fund will be closed as of the end of 2005. Finance Director Beer stated that the Finance Department had a largely successful year in 2005. He explained that the insurance policies were reviewed, a reporting service is being utilized to comply with GASB 40, and a new financial software package was purchased. He stated that he looks forward to improved technology to result in improved reporting and the reduction of staff • time. Mounds View City Council February 13, 2006 Regular Meeting Page 26 • Finance Director Beer noted that online bill payment will be explored in conjunction with the new utility billing system that will accept alternate forms of payment such as credit cards, e- checks, debit cards, etc. He noted the new accounting system can handle direct debits with no additional charge, and online bill pay will be an additional cost for software and ongoing maintenance fee. Mayor Marty thanked Director Beer for doing a great job and he stated he appreciated all the energy and enthusiasm he puts into his work. Councilmember Stigney stated that Director Beer has done an excellent job since he has been with the City and that Staff hopes he will stay on for a long time. 3. Red Oak Estates #3 Update Community Development Director Ericson presented an update on Red Oak Estates #3. He explained that information has been submitted to Public Works for a grading permit by the Harstads. He stated that moving forward the Rice Creek Watershed District issue to be resolved, and that additional information is needed from the City on the grading permit and that easement areas needed to be addressed. Director Ericson stated that he had discussions with Mr. Harstad to discuss the notions of the swimming pool and tennis court and whether or not the City will require that to be installed. • Director Ericson reported that it does not matter to Mr. Harstad one way or another, but it has to be done in terms of original resolution and according to the judge. Director Ericson reported that Mr. Harstad said it was not a selling feature for units, and the owners will have an association with dues to maintain the tennis courts and pool. Director Ericson asked the City Council if they want to take any action about this. He stated he wants to provide direction from Mr. Harstad offering to provide equivalent to Parks and Recreation Department $68,000 cash to them. Director Ericson noted feedback can be obtained from the six property owners to see what they would like to see happen before taking action. Director Ericson pointed out that the North Metro Home and Garden Show is February 25 and 26 in the Schwan Center and he encouraged all City residents to attend as there will be several vendors and lots of information. C. Reports of City Attorney None. 12. Nezt Council Work Session: Monday, March 6, 2006 at 7:00 p.m. (March Work Session) Nezt Council Meeting: Monday, February 27, 2006 at 7:00 p.m. • Mounds View City Council February 13, 2006 Regular Meeting Page 27 • 13. ADJOURNMENT The meeting was adjourned at 10:39 p.m. Transcribed by: Annette Anderson Timesaver Off Site Secretarial, Inc. • •