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HomeMy WebLinkAboutMinutes - 2006/09/11• PROCEEDINGS OF THE MOUNDS VIEW CITY COUNCIL CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA Regular Meeting September 11, 2006 Mounds View City Hall 2401 Highway 10, Mounds View, MN 55112 7:00 P.M. 1. MEETING IS CALLED TO ORDER A. Observe Moment of Silence in Honor of the Victims of 9/11 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL: Mayor Marty, Councilmember Stigney, Councilmember Gunn, Councilmember Flaherty, and Councilmember Thomas NOT PRESENT: None. • 4. APPROVAL OF AGENDA A. Monday, September 11, 2006 City Council Agenda MOTION/SECOND: FLAHERTY/GiJNN. To Approve the Monday, September 11, 2006 agenda as presented. Ayes - 5 Nays - 0 Motion carried. 5. PUBLIC INPUT Carol Casebolt, 2630 Louisa Ave., asked the City to try and save the half-mile stretch of the 860 bus line that runs through her neighborhood. She stated there has been a local leg of the bus for 25 years. She noted that there are many people who take the bus and there are no benefits to removing the half-mile stretch that serves Mounds View. She also indicated that Metro Transit has added a route to Lafayette Park. Ms. Casebolt said that the removal of the line does not make sense and there was no written public notice. She said she has been working with the Mounds View area's representative on the Met Council, Kris Sanda, but there is not a lot of interest in saving the route. Mounds View City Council September 11, 2006 Regular Meeting Page 2 Ms. Casebolt stated that when she purchased her home, she called Metro Transit to make sure that the route was solid and that at the time, Metro Transit gave the residents assurance that the route would be kept. Ms. Casebolt stated that six to seven residents are directly impacted and asked that the Council join the Met Council Representative Sanda to try and save the route. She noted the route is in transition and asked the Council for their support. She explained the bus route and said it will now take 90 minutes for her to commute to Minneapolis. Councilmember Thomas stated that the bus is the only route from Mounds View to Saint Paul. She stated that if the City wants to support public transportation, the Council needs to speak up. She stated she supports an official letter from the Council to try and save the bus line. Mayor Marty said that in the past, the City has received notice a month or so prior to route cancellations. He stated riders were noticed on Friday and the bus line was gone on Monday. Ms. Casebolt stated that although she heard about the closure through the grapevine a few weeks ago, it was still quite sudden. She stated Metro Transit based their decision on less than solid research. Mayor Marty asked if there is any way the Council could write a letter to Metro Transit on the City's behalf. Administrator Ulrich stated it would be possible. The Council reached consensus to write such a letter opposing the removal of the bus line. 6. SPECIAL ORDER OF BUSINESS None. 7. COUNCIL BUSINESS A. Second Reading and Adoption of Ordinance 778, an Ordinance Implementing a Franchise Fee on Xcel Energy Electric and Natural Gas Operations within the City of Mounds View for the Year 2007. (ROLL CALL VOTE) Finance Director Beer stated the ordinance is to continue the 4% franchise fee on natural gas and electric operations within the City. He stated the franchise fee is an integral part of the budget, $270,000 of which is budgeted for the Street Improvement Fund and $270,000 of which will go into the General Fund. He noted that public notice was given and the ordinance will be published as soon as it is approved. Finance Director Beer noted the City Attorney Riggs addressed Xcel's letter. He stated City's position that any franchise fee be approved by 4/5 of the Council after notice and a public hearing, and the franchise does not require that Xcel accept the fee ordinance language, and accordingly, Xcel has no basis to demand specific ordinance language, such as a permit fee waiver. Mounds View City Council September 11, 2006 Regular Meeting Page 3 Finance Director Beer stated there is no impediment to approving the ordinance at this time. MOTION/SECOND: GL1NN/THOMAS. To waive the reading and adopt Ordinance 778, an Ordinance Implementing a Franchise Fee on Xcel Energy Electric and Natural Gas Operations within the City of Mounds View for the Year 2007. Councilmember Stigney noted that the 4% franchise fee is for one year and will sunset on Dec 1, 2007. Marty -Aye Stigney -Aye Gunn -Aye Flaherty -Aye Thomas -Aye Ayes - 5 Nays - 0 Motion carried. B. Second Reading and adoption of Ordinance 779, an Ordinance Implementing a Franchise Fee on Center Point Energy Natural Gas Operations within the City of Mounds View for the Year 2007. (ROLL CALL VOTE) Finance Director Beer explained the ordinance continues the 4% franchise fee, which will sunset on December 1, 2007. He noted the Centerpoint contributions do not impact the budget, but in order to be consistent, the franchise ordinance needs to be on the books. MOTION/SECOND: FLAHERTY/GUNK. To waive the reading and adopt Ordinance 779, an Ordinance Implementing a Franchise Fee on Center Point Energy Natural Gas Operations within the City of Mounds View for the Year 2007. Manly -Aye Stigney -Aye Gunn -Aye Flaherty -Aye Thomas -Aye Ayes - 5 Nays - 0 Motion carried. C. Resolution 6933 Authorizing Certification of the Proposed General Fund Budget and Property Taz Levy for Fiscal Year 2007. Finance Director Beer stated that by law, the City is required to pass a preliminary levy that needs to be certified by the County by December 15. He stated the Council has directed Staff to prepare a preliminary levy of 0%, which will be the same as last year and will equal two straight Mounds View City Council September 11, 2006 Regular Meeting. Page 4 years of no levy increases. Mayor Marty stated that once the levy is approved, it cannot be raised, and it is being approved at a 0% increase. MOTION/SECOND: MARTY/FLAHERTY. To waive the reading and adopt Resolution 6933 Authorizing Certification of the Proposed General Fund Budget and Property Tax Levy for Fiscal Year 2007. Councilmember Stigney stated the City has used Medtronic revenue in the levy reduction fund prior to reducing the budget, which he hopes will be reduced. Councilmember Stigney also noted his confusion about the numbers. He said one of the major items, the $188,000 for the street reconstruction fund, is not shown in the report and asked that everything be reflected in the report. He stated the number is part of tax levies the City provides to the residents and he is having difficulty seeing how it balances. Finance Director Beer replied that all taxes could be recorded in the general fund, then transferred to the debt service fund so all taxes are shown in one fund. He stated if the City issues more bonds as the street improvement projects are increased, the amounts moved in and out of the general fund may be quite large. Finance Director Beer stated the proper accounting practice is to record the tax revenue in the fund from which the City will pay the debt service. He stated one fund could be established for all of the taxes so citizens could understand it better, however. Councilmember Stigney stated he would appreciate such action. Mayor Marry suggested an addendum be added to the report indicating the taxes. Ayes - 5 Nays - 0 Motion carried. D. Resolution 6932 Establishing Public Hearing Dates for the Proposed General Fund Budget and Property Taz Levy for Fiscal Year 2007. Finance Director Beer stated that as a result of certifying a 0% levy increase, the City could hold a truth-in-taxation hearing. He stated that the City is not required to hold such a hearing, but they could do so to provide an opportunity for citizens to comment on the budget. He recommended that the Council approve a preliminary hearing on December 4, 2006, and December 11, 2006 as the follow-up hearing. He stated the approval of the budget will happen at the December 11 meeting. Mayor Marty noted that he and the Council support a hearing even though there is a 0% levy increase. Finance Director Beer noted that the City does not have to comply with the full notification process, and that would save the City money. r MOTION/SECOND: THOMAS/STIGNEY. To waive the reading and adopt Resolution 6932 Mounds View City Council September 11, 2006 Regular Meeting Page 5 Establishing Public Hearing Dates for the Proposed General Fund Budget and Property Tax Levy for Fiscal Year 2007. Ayes - 5 Nays - 0 Motion carried. Councilmember Flaherty noted, for those watching the hearing at home, that the agenda item listed on the screen is not the one being discussed. E. Resolution 6935, a Resolution Authorizing the Hire of Mary Springer to the Position of Mounds View Receptionist. City Administrator Ulrich noted that the starting wage for the position will be $12.57 per hour, which is the first step in the range for the position. He explained that there were over 90 applications for the position, six were interviewed, and Ms. Springer was the top candidate. He noted Ms. Springer is a long-time Mounds View resident. Mayor Marty noted the step progression of the position. MOTION/SECOND: GUNN/THOMAS. To waive the reading and adopt Resolution 6935, a Resolution Authorizing the Hire of Mary Springer to the Position of Mounds View Receptionist. Councilmember Stigney commented that he is happy that a Mounds View resident was hired, but stated he does not agree with the specific job and would rather an administrative assistant be hired. Ayes - 4 Nays - 1(Stigney) Motion carried. F. Reschedule Monday, September 18, 2006 Special Work Session. City Administrator Ulrich suggested the Special Work Session be scheduled for Monday, September 25, which is the date of the next EDA and City Council meeting. He noted it will give the Council a good start on the budget and will be held on a regular meeting day. Mayor Marty agreed with the suggestion. He asked Community Development Director Ericson if there would be any EDA business. Community Development Director Ericson stated that there could be a resolution regarding the property at 2696 County Road 10. Mayor Marty suggested a 5:30 p.m. start time for the Work Session on September 25. The Council came to consensus to hold the meeting at 5:30 on September 25. 8. CONSENT AGENDA Mayor Marty noted that work on two of the items has already been done so the licenses need to be approved. Mounds View City Council September 11, 2006 Regular Meeting Page 6 A. Licenses for Approval MOTION/SECOND: MARTY/FLAHERTY. To Approve the Consent Agenda as presented. Ayes - 5 Nays - 0 Motion carried. 9. JUST AND CORRECT CLAIMS Councilmember Flaherty asked about Check Number 119159, issued to Dave's Sport Shop for the amount of $106.48. Finance Director Beer stated they were athletic nets for fields. He asked about Check Number 119194, to the Pioneer Press for $2,021 to run ads for the receptionist and water maintenance. Finance Director Beer noted that it was two separate ads and which were run on Sundays, which are expensive. City Administrator Ulrich stated one ad was run for one week, one was for two weeks, and it is around $800 per ad for one week. Councilmember Flaherty asked about advertising in the local papers versus the larger papers. Finance Director Beer stated they did not receive many applications for the water position from ads in the local paper. Councilmember Gunn asked about Check Number 119141, the Heartland Mounds View Common Bond. Director Ericson noted it was a developer payment in TIF for Silver Lake Point. Councilmember Gunn then asked about Check Number 119186, the MN Department of Labor building surcharge. Finance Director Beer noted it was all of the building permit surcharges paid to the state. Councilmember Gunn asked about Check Number 119202, concrete for the Silver Lake Road Sidewalk. Finance Director Beer stated the payment was for a contractor. Finance Director Beer noted that the charge for SEH is for wetland maps and GIS updates. MOTION/SECOND: GUNN/STIGNEY. To approve the Just and Correct Claims as Presented. Ayes - 5 Nays - 0 Motion carried. 10. APPROVAL OF MINUTES A. August 14, 2006 City Council Meeting Minutes • Mounds View City Council September 11, 2006 Regular Meeting Page 7 Mayor Marry noted he made several corrections to Director Ericson. Councilmember Flaherty corrected page 5, lines 23 and 24, and asked that it be rephrased. Mayor Marty asked the Council about page 6, line 19-21. Mayor Marty commented that he liked the "hearing no comment" phrasing for public hearings. Councilmember Thomas noted on page 9, Line 42, that it should read "in the ordinance language" instead of "that current licensing requirements" Councilmember Gunn noted on page 9, Line 27, it should read included. Mayor Marty noted a change on page 29. MOTION/SECOND: MARTY/FLAHERTY. To Approve the August 14, 2006 City Council meeting minutes as corrected during the meeting and as by submissions from Councilmembers. Ayes - 5 Nays - 0 Motion carried. 11. REPORTS A. Reports of Mayor and Council None. B. Reports of Staff City Administrator Ulrich noted that the primary elections are Tuesday, September 12~', from 7:00 a.m. - 8:00 p.m., and filings for local office will close at 5:00 p.m. City Administrator Ulrich noted Mounds View received a letter from the League of Minnesota Cities regarding the case of Councilmember Barbara Thomas sitting on both the Charter Commission and Council He stated the City Attorney recommended the Charter Commission take up the issue at their next regular meeting. City Administrator Ulrich stated the IRS completed their examination of the City's books and the City has passed with flying colors. He commended Finance Director Beer and Staff for their work. He noted the IRS auditor commended the City for Staff's record keeping. He noted there was an issue with the health savings retirement plan, but it is a national issue and the International City Manager's Association has agreed to provide legal assistance to the City. He noted there are about a dozen other cities dealing with the same issue. City Administrator Ulrich also pointed to his two-page update. Mounds View City Council September 11, 2006 Regular Meeting Page 8 1. Finance Quarterly Report Finance Director Beer stated that the general fund is on target. He stated that the timing of when things occur regarding revenue, and that the majority of revenues come in during the second half of the year. He noted that the number in the report from June 30~' may not reflect a proportionate amount of income. Finance Director Beer noted the City is doing well as far as expenditures and may have a small surplus. He noted that there is a deficit of $136,000 for the community center, and a $146,000 transfer will help offset the deficit. He noted the deficit was from the $45,000 in projected revenue from the banquet center, of which only $2,345 has been collected. He noted that fund reserves or increasing the transfer from other funds will have to offset the deficit. Finance Director Beer noted that the $220,000 received from Ramsey County has been outstanding from 1998 relating to the H2 project. He noted the City received $1.29 million from Medtronic as part of the Bridges Golf Course Redevelopment, which will go toward the different City projects. Finance Director Beer explained that the City has collected $493,000 in investment income, compared to $203,000 the previous year. He stated that currently, the investment fund is near $25 million when it was previously $13.6 million for the same period in 2005. He noted the large increase was from the sale of the golf course and significant permit income. Finance Director Beer added that the Federal Open Market Committee (FOMC) has rate increases and the discount rate is 5.25%. He noted the spread on the yield curve continues to be very narrow. He stated the City uses the investment strategy called "laddering" or staggering maturities over a number of years to off-set the impact of interest rate fluctuation. He stated the City maintains liquid (money market) of $1-2 million for cash flow purposes. He added that the rate will continue as long as the inflation rates remain tame, and some economists are predicting that the FOMC will have to lower rates in 2007. Finance Director Beer also noted that the finance operations for the second quarter are dominated by the comprehensive annual financial report and subsequent audit. He noted they have begun work on the long-range financial plan, preparing variable utility rates, and renewing the insurance policies for the policy year beginning January 1, 2007. Finance Director Beer noted that two significant events will occur in the third and fourth quarters, the budget and the implementation of the new financial software. He added that the list of delinquent utility bills and unpaid diseased tree charges will be presented to the Council for certification. Finance Director Beer stated Staff will also work with insurers for 2007 rates. He also noted that • the department has decreased annual software maintenance fees by $1,700 by implementing the new software. Mounds View City Council September 11, 2006 Regular Meeting Page 9 ~.J • C. Reports of City Attorney None. 12. Next Council Work Session: Next Council Meeting: Monday, October 2, 2006, at 7 p.m. Monday, September 25, 2006, at 7 p.m. 13. ADJOURNMENT The meeting was adjourned at 7:47 p.m. Transcribed by: Lauren McKay Timesaver Off Site Secretarial, Inc. L~