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CITY OF ST. ANTHONY
CITY COUNCIL REGULAR MEETING MINUTES
AUGUST 25, 2015
CALL TO ORDER.
Mayor Faust called the meeting to order at 7:00 p.m.
PLEDGE OF ALLEGIANCE.
Mayor Faust invited the Council and audience to join him in the Pledge of Allegiance.
ROLL CALL.
Present: Mayor Faust; Councilmembers Brever, Gray, Jenson, and Stille.
Absent: None.
Also Present: City Manager Mark Casey, City Engineer Todd Hubmer, Finance Director Shelly
Rueckert, Liquor Operations Manager Mike Larson,
CONSIDERATION, DISCUSSION, AND POSSIBLE ACTION ON ALL OF THE FOLLOWING
ITEMS.
I. APPROVAL OF THE AUGUST 25, 2015, CITY COUNCIL MEETING AGENDA.
Motion by Councilmember Gray, seconded by Councilmember Jenson, to approve the City
Council Meeting Agenda of August 25, 2015.
Motion carried unanimously.
II. PROCLAMATIONS AND RECOGNITIONS — NONE.
III. CONSENT AGENDA.
A. Consider August 11, 2015, City Council meeting minutes;
B. Consider licenses and permits; and
C. Consider payment of claims.
Motion by Councilmember Brever, seconded by Councilmember Stille, to approve the Consent
Agenda items.
IV. PUBLIC HEARING - NONE.
V. REPORTS FROM COMMISSION AND STAFF - NONE.
VI. GENERAL BUSINESS OF COUNCIL.
Motion carried unanimously.
City Council Regular Meeting Minutes
August 25, 2015
Page 2
A. Resolution 15-051 a resolution approving the Rice Creek Watershed District — Mirror
Lake agreement.
City Engineer Todd Hubmer reviewed coming before the Council is a resolution for the City of
St. Anthony Village to enter into an agreement with the Rice Creek Watershed District for the
construction of water quality and flooding improvements at Mirror Lake in St. Anthony Village.
8 The improvements proposed will meet the pollutant reduction requirements of the Targeted
9 Watershed Grant from the Minnesota Board of Water and Soil Resources to the Rice Creek
10 Watershed District. This grant was given to RCWD for reductions in phosphorus loading into
11 Long Lake in New Brighton. These improvements are also included in the City's petition for
12 assistance to the RCWD to reduce flooding in and around the area of Foss Road and 39th Avenue
13 in St. Anthony Village.
14
15 The agreement anticipates a total project cost of $1,392,000 and is proposed to be funded in the
16 following manner:
17
18 1. The Rice Creek Watershed District will pay the first $892,000 for the improvements.
19 2. The Rice Creek Watershed District and the City of St. Anthony Village shall incur 50% of
20 the improvement costs above $892,000 up to a maximum of $1,392,000.
21 3. The Rice Creek Watershed District may retain 10% of the improvement payment requests
22 until final certification of the project is completed.
23 4. The City of St. Anthony Village shall pay 100% of project costs in excess of the $1,392,000.
24 5. Exclusive of in-kind contributions, the Rice Creek Watershed District's total cash
25 contribution to the project shall not exceed $1,142,000.
26
27 The project must be 100% complete by December 21, 2018 with interim milestones for
28 completion, including the preparation of preliminary plan to the Rice Creek Watershed District
29 for their consideration by December 31, 2015.
30
31 Kyle Axdahl, Rice Creek Watershed District, was present at the meeting.
32
33 Councilmember Stille asked what the improvements would consist of. Mr. Hubmer stated the
34 water level would be reduced 2-3 feet, dredging the basin to improve water quality, and increase
35 flood storage. Councilmember Stille asked what impact this would have on current flood
36 protection. Mr. Hubmer stated he has not run the numbers but will report back to Council.
37 Incrementally they are getting closer to the 100 year flood protection. Mr. Hubmer stated he is
38 fairly confident in the estimate.
39
40 Councilmember Jenson asked how many years has this process been going on and Mr. Hubmer
41 stated since 2013. City Staff assisted Rice Creek Watershed District with the grant preparation
42 for a $3M grant. This project was to improve water quality at Long Lake.
43
44 Mayor Faust stated flooding occurred in 2011 and the magnitude of the problem and plan to
45 remediate the issues and really has been going on since 2011. Two counties, state agencies and
46 the federal government were all involved. Mayor Faust asked Mr. Axdahl to take back to the
47 Watershed the City of St. Anthony is committed to this project. The project will improve water
City Council Regular Meeting Minutes
August 25, 2015
Page 3
1 quality and water quantity. This will affect more than just the residents of Mirror Lake. This has
2 been an outstanding project.
4 Motion by Mayor Faust, seconded by Councilmember Stille, to adopt Resolution 15-051 a
5 Resolution Authorizing Execution of a Cooperative Agreement between the City of St. Anthony
6 and the Rice Creek Watershed District for the Construction, Operation and Maintenance of the
7 Mirror Pond Project Component of the Petitioned Basic Water Management Project 2013-01.
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Motion carried unanimously.
B. 2016 Budget Presentation
Finance Director Shelly Rueckert reviewed at the July 31, 2015 work session, the City Council
and Staff reviewed the proposed 2016 General Fund Operating Budget and the 2016 Overall
levy. Additionally a public hearing was held April 28, for public input on the budget process.
Based on discussions with the Council, Staff is proposing a 2016 General Fund Operating
Budget totaling $6,936,342. The 2016 proposed Overall Levy increase is $219,075 or a 3.76%
increase from 2015.
The components of the 2016 proposed Overall Levy are as follows:
Amount
Increase/Decrease
General Fund
$3,385,370
$64,160
CIP
$80,990
$30,990
Road Improvement Debt
$1,828,848
$37,123
Lease Revenue Bonds
$387,322
$4,450
HRA Lev
$140,170
$7,388
Tax Abatement
$155,112
$1,964
Building Improvement
$73,000
$73,000
$6,050,812
$219,075
The parameters for preparing the General Fund Operating budget and Levy includes:
• City revenues budgeted using current run rates for sources that are subject to trends and
conservative baseline estimates for re -occurring aids and charges for services.
• Liquor transfer reduced to match current operating results.
• Expenses budgeted at amounts that will maintain present level of City services.
Each year the General Fund revenue and expenditure budget line items are examined for changes
in expected collections/charges, labor adjustments, changes in contract rates, insurance rates,
utility costs, usage of various materials or needs, etc. The findings of this examination produce
the drivers associated with the proposed 1.93% increase in the General Fund Levy — see below:
Personnel costs — 73% of expenditures, overall costs up 2.92%
o Union contract increases 2.5%
o Health Insurance premiums up 11.5%
o Union Longevity, Steps, shared HR, Workman's compensation rates
Contracted services — 9% of expenditures, overall costs up 3.05%
City Council Regular Meeting Minutes
August 25, 2015
Page 4
• Property and liability insurance costs — 4% of expenditures, rates up 5.22%
• Pass through costs — 5% of expenditures, costs up 4.39%
• Remaining budget line items combined —9% of expenditures, net costs up 0.34%
• Impact of a reduction in liquor profits available for transfer was phased in through the use
of one time fees and fund balance, mitigating the general fund impact by 2.78%
7 The HRA budget and Levy contains cost drivers similar to the general fund. Conversely, this
8 fund does not have the same resources and transfers available to offset cost drivers. Therefore,
9 the proposed Levy increase for the HRA is 5.56% or $7,388.
10
11 The 2016 Debt Related Levies are proposed to increase by a combined 1.87% increase over the
12 2015 combined levies. The $43,537 increase represents a 0.75% increase to the Overall Levy. A
13 debt levy reduction program (Peak to Plateau) began in 2014 to stabilize the annual increase in
14 levies created the annual street reconstruction plan. Without the use of resources committed to
15 this program, the impact of 2015 street bonds issued along with existing debt service
16 requirements would have required a 5.05% increase in the Overall Levy.
17
18 The 2016 Capital Funds Levies are proposed to increase by a combined $103,990. This increase
19 is part of the phase-in plan to recognize that liquor transfers are estimated to be $146,395 less
20 than 2015. The phase-in approach uses of one time fees and fund balance. The impact of the
21 Capital levies increase is eased by phase-in approach used within the General Fund Levy.
22
23 Staff will continue to seek Grants and Donations from Federal, State and private sources to help
24 offset the cost of operations and capital equipment.
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26 At the September 8`h City Council meeting, Staff will present the preliminary 2016 General
27 Operating Budget and Property Tax Levy to the City Council. At this meeting, a resolution will
28 need to be passed certifying the preliminary levy to Hennepin and Ramsey Counties.
29
30 The final presentation of the 2016 General Operating Budget and Property Tax Levy is
31 scheduled for the December 8, 2015, Council Meeting. At the meeting, Staff will present a recap
32 of the 2016 General Operating Budget and the impact of the 2016 Property Tax Levy.
33
34 Finance Director Shelly Rueckert reviewed a powerpoint presentation summarizing the 2016
35 Proposed Budget. She reviewed the 2016 Budget Calendar:
36 • January 15-16, 2015 Goal Setting, Financial Management and Planning
37 • April 28, 2015 Public Hearing/Provide Residents with an opportunity to have input in the
38 Budget process.
39 May — June — Staff Meetings with Department Heads — Discussion on 2016 Operating budget
40 and evaluating 5 -year Capital Equipment needs.
41 . July 31, 2015 — Financial Planning work session.
42
43 Ms. Rueckert reviewed the 2016 General Fund Revenues, Liquor Sales Projection, Liquor
44 Transfers Summary, General Fund Levy Relief, 2016 General Fund Expenditures, 2016 Budget
45 Cost Drivers, 2016 Proposed Levies, Issuance of Debt/Levy Impact, Impact of Debt Levy Relief,
46 Summary of 2016 Budget, What does the General Fund Levy Support, Grant/Donations —
47 Partnerships, and Next Steps.
City Council Regular Meeting Minutes
August 25, 2015
Page 5
2 Since 1999 to date, the City has received $19,405,122 in Grants and Donations from local
3 businesses/residents. $2.261 per resident (Based on a population of 8,583). The next steps in the
4 Budget process are:
5 • August 25, 2015 — Presentation to Council — proposed 2016 Operating Budget & Property
6 Tax Levy to the City Council.
7 • September 8, 2015 — Public Hearing — resolution setting the Preliminary 2016 Operating
8 Budget and Property Tax Levy
9 . December 8, 2015 — Public Hearing — Approving the Final 2016 Operating Budget and Levy
10 and Adoption of 2016 Operating Budget and Property Tax Levy
11
12 No action is required of the Council on this matter this evening.
13
14 Mayor Faust stated 51 % of the budget, which would mean more revenue is coming into the City
15 via partnerships, etc. Mayor Faust noted the St. Anthony Boulevard milling was done overnight
16 to avoid disruption to residents.
17
18 Councilmember Stille stated the Liquor business has been great with great staff. The projections
19 from Liquor income he feels is very conservative.
20
21 Mayor Faust referred to the partnership with the Rice Creek Watershed District and noted the
22 good work of staff on that.
23
24 C. Liquor Operations Mid -Year Report
25
26 Liquor Operations Manager Mike Larson presented a powerpoint presentation summarizing the
27 St. Anthony Village Liquor Operations Mid -Year Report.
28
29 There are two locations — Silver Lake Village Store located at 2602 39'h Avenue and
30 Marketplace Store located at 2700 Highway 88.
31
32 The Mission Statement — Our goal is to actively prevent the sale of beverages that contain
33 alcohol to minors and intoxicated persons, while simultaneously generating revenue for the
34 community, in accordance with all city, state and county liquor laws and ordinances.
35
36 The Vision Statement — The St. Anthony Village Wine and Spirits brand is committed to
37 providing a unique retail environment that is based on excellent customer service, product
38 selection, competitive pricing, while providing safe, bright and clean stores that drive long term
39 customer loyalty.
40
41 The Value of Municipal Liquor Operation Revenue. Profits are used for:
42 . Reducing the Property Tax Levy although it has been declining.
43 • Providing Funds for Special Projects
44 • Providing Funds for Equipment Purchases for all City Departments
45
46 Mr. Larson reviewed the 5 and 10 year profit history and the summary of Sales through June
47 2015. The factors for the sales decrease were decrease in shopping traffic at Silver Lake Village
City Council Regular Meeting Minutes
August 25, 2015
Page 6
1 and increased competition (brewpubs and new off -sale liquor stores). Mr. Larson reviewed the
2 2015 Sales Projection, the 2015 Net Income Projection, and 2015 Sales Comparison. 100% of
3 the profits go back into the community. Gross profit is down $90,000. Operating expenses have
4 been reduced by $37,000. The 2015 Sales Projection is $5,595,494. Net profit is estimated to be
5 $171,865.
7 Mr. Larson reviewed the 2015 Accomplishments:
8 • Passed an alcohol and tobacco sales compliance check
9 • Wine and beer sampling events
10 • Combined educational seminars with other municipal operations
11 • Physical inventory counts (.0042%) Inventory being rotated on a monthly basis.
12 • Completed connection of fiber optic to both locations and City buildings. A perpetual
13 inventory is run between both stores. This will also help with credit card compliance. The
14 fiber optic is making the store much more efficient.
15 • Winner of the Lillie Suburban Newspapers Readers Choice Awards — "Best Wine" and "Best
16 Beer" Selection
17
18 Looking Ahead .... 2015
19 • Upgrade Credit Card Services to meet Federal Credit Card Compliance Laws
20 • Legislative Issues
21 • Sampling Events
22 • Alcohol Server Training
23 • Security System Upgrade/Replacement
24
25 Mr. Larson reviewed the Website www.stanthonyvillagewineandspirits.com:
26 • 2100 Visits per month
27 • Event Calendar
28 • Monthly Specials and Coupons
29 • Customer Survey
30 • Product Requests
31 • Store Hours and Locations
32 • Contact Information
33
34 Mr. Larson thanked the Council for their support of the Liquor Operations and the residents. He
35 recently attended a Night to Unite event and received many positive comments about the stores
36 and staff.
37
38 Mayor Faust stated the Council needs to be cognizant that the Liquor Operation is still making
39 money and keep the Mission in mind. He congratulated Mr. Larson and his staff for passing the
40 recent alcohol and tobacco sales compliance checks. Mayor Faust asked if the Liquor Operation
41 is able to purchase the same wine and spirits that Total Wine purchases and Mr. Larson stated
42 State Law regulates the proprietary brands and they are able to purchase the same items. National
43 Brands are heavily advertised. Mr. Larson stated they sell items to consumers based on their
44 preferences and needs. Profit margins are being reviewed when determining prices based on
45 what is going on in the economy at this time.
46
City Council Regular Meeting Minutes
August 25, 2015
Page 7
1 Councilmember Gray stated the last two months have been better than in the past. Losing the
2 anchor was difficult. He asked what drives the increases in recent months. Mr. Larson stated
3 convenience of parking, ease of getting in and out, providing great customer service, carrying a
4 larger selection of items and customers are responding. Councilmember Gray asked what kind of
5 an impact will the Sunday sale of growlers affect the municipal stores. Mr. Larson stated there is
6 an impact but it is very difficult to put a number on that.
8 Mayor Faust stated sales would probably not increase if open on Sundays but expenses would
9 increase.
10
11 D. Resolution 15-052, a resolution approving the East Metro SWAT Joint Powers
12 Agreement
13
14 City Manager Casey reviewed the new Joint Powers Agreement (JPA) for the East Metro
15 SWAT. The City of St. Anthony has been a part of East Metro SWAT since 2002. Over the
16 years, we have signed new agreements due to adding or subtracting member agencies. This year,
17 we have added Metro Transit as a member organization bringing East Metro SWAT back up to 5
18 member agencies (Roseville, St. Anthony, North St. Paul, University of Minnesota and
19 Metropolitan Council). Other than adding the Metropolitan Council, the JPA remains virtually
20 identical to the previously executed JPAs. This has been reviewed and endorsed by the St.
21 Anthony Police Chief.
22
23 Motion by Councilmember Brever, seconded by Councilmember Jenson, to adopt Resolution 15-
24 052 a Resolution Authorizing Execution of the East Metro Special Weapons and Tactics Team
25 Joint Powers Agreement.
26
27 Motion carried unanimously.
28
29 E. Resolution 15-053 a resolution approving the use of new voting equipment beginning
30 with the November 3 2015 elections
31
32 City Manager Casey reviewed Council is requested to consider a resolution to adopt using the
33 Hart Verity voting system, beginning with the November 3, 2015 election.
34
35 The current voting system used in Ramsey County is 14 years old and has dated software.
36 Finding replacement parts for the voting system has become increasingly difficult. The new Hart
37 Verity system will meet the needs of Ramsey County and the cities countrywide as we deal with
38 changing election laws and changes to election administration.
39
40 The new voting system is expected to last through the 2028 elections. The new voting system
41 will not change the voter experience. We will also have information available on our website
42 about the new voting system when it is made available from Ramsey County as well as the new
43 equipment on display at City Hall.
44
45 Motion by Councilmember Jenson, seconded by Councilmember Brever, to adopt Resolution 15-
46 053 a Resolution adopting the use of new voting equipment, beginning with the November 3,
47 2015 elections.
48
City Council Regular Meeting Minutes
August 25, 2015
Page 8
Motion carried unanimously.
VII. REPORTS FROM CITY MANAGER AND COUNCIL MEMBERS.
Mr. Casey stated there is construction going on near Kenzie, the in -pavement crossing system is
being installed.
8 Mayor Faust advised residents to be cautious when crossing for the first time. Mayor Faust stated
9 Aug 19 he did an interview at LOMC for the new Executive Director. On August 20, Mayor
10 Faust attended a Chandler Place Open House. This was started in 1960 and it has changed
11 dramatically over the years. The new entrance serves the residents well. A variance for a glass
12 window on the south side of the building allows light to come into the therapy area. He toured
13 the complex and reviewed some of the programs offered. Chandler is owned by the Goodman
14 Group who has won a Ballridge Award. They have 300 employees and are the largest single
15 employer in the City of St. Anthony.
16
17 VIII. COMMUNITY FORUM.
18
19 Mayor Faust invited residents to come forward at this time and address the Council on items that
20 are not on the regular agenda. Hearing none, Mayor Faust moved forward with the agenda.
21
22 IX. INFORMATION AND ANNOUNCEMENTS.
23
24 None
25
26 X. ADJOURNMENT.
27
28 Mayor Faust adjourned the meeting at 8:05 p.m.
29
30 Respectfully submitted,
31 Debbie Wolfe (TimeSaver Off Site Secretarial, Inc.)
32 C
33 - -
34 ATTEST: �ayor
35 Ci lerk