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Box: 36
Folder: CC MINUTES AND AGENDAS 2001
Document: CC MINUTES 11132001
City Council Regular Meeting Minutes
November 13, 2001
Page 1
CITY OF ST. ANTHONY
2
3 CITY COUNCIL STUDY SESSION MINUTES
4
5 November 13, 2001
6
7
8 I. CALL TO ORDER.
9 Mayor Pro Tem Horst called the meeting to order at 7:01 p.m.
10
11 II. PLEDGE OF ALLEGIANCE.
12 Mayor Pro Tem Horst invited the Council and the audience to join in the Pledge of Allegiance.
13
14 III. ROLL CALL.
15 Councilmembers present: Mayor Pro Tem Horst; Councilmembers Sparks, Thuesen,
16 and Hodson.
17 Councilmembers absent: None.
18 Also present: City Manager Mike Mornson; City Attorney Jerry
19 Gilligan.
20
21 IV. COMMUNITY FORUM.
Mayor Pro Tem Horst invited residents in the audience to speak to the Council on items that are
41 not on the regular agenda.
24
25 Dorothy Fleming came forward to speak on behalf of the Village Community Concert Series.
26 She stated that there was a fantastic turnout for the Chinese Acrobats. She indicated that the
27 concerts are open to all age groups, and that all age groups were present for the Chinese
28 Acrobats.
29
30 Ms. Fleming stated that they needed the support of the Council for the next concert, "Three Hits
31 and a Miss". Ms. Fleming indicated that the cost for a ticket to the concert was $20.00 per show,
32 or$40.00 for all four shows. She stated that she appreciated any cooperation that the City
33 Council could provide, and indicated that she would be leaving a few pamphlets on information
34 regarding the concerts.
35
36 Mayor Pro Tem Horst made reference to donations for the concert series which would be greatly
37 appreciated. Ms. Fleming agreed, and thanked the Council for their time and support.
38
39 Resident Kim Tillman, 2904 Crestview Drive, came forward to support the plans for upgrading
40 the Community Center. She stated that she felt it was important to keep the communications
41 within the city strong, and that the improvements that were proposed would really enhance the
42 Community Center.
43
Ms. Tillman added that it was easy for buildings to be neglected and eventually require major
renovations and funding. She stated that the Community Center is a project that should not be
46 forgotten about and urged that the project be worked into the budget as soon as possible. She
47 thanked the Council for their time.
City Council Regular Meeting Minutes
November 13, 2001
Page 2
*1
2 V. ACTION ITEMS.
3 a. Consent Agenda.
4
5 1. Approve October 23, 2001 Regular Council Meeting Minutes.
6 Councilmember Thuesen made the following addition to the October 23, 2001 Regular
7 City Council Meeting Minutes: Page 3, line 13: "...highly inappropriate due to the fact
8 that all the candidates were not present and that this was not the proper time to discuss
9 his questions."
10
11 Motion by Councilmember Hodson to approve the October 23, 2001 City Council
12 Regular Meeting Minutes, as amended above.
13
14 Motion carried unanimously.
15
16 2. Licenses/Permits:
17 3. Claims.
18 4. Resolution 01-083, re: Adopt a flexible benefit plan.
19 Mornson stated that the proposed flexible plan contains the opportunity for employees of
20 the city to take some of their earnings and tuck them away into a pre-paid medical, or
21 daycare expense account.
0 Mornson explained that the employees do not get taxed on the services. He added that
24 each month, or year, the employee submits a reimbursement form for reimbursement for
25 the services.
26
27 Mornson continued that this benefit has been requested by the union for quite some time,
28 but been put on hold. He added that there is no cost to the city for the flexible benefit
29 plan, as long as they have twenty full-time employees.
30
31 Motion by Councilmember Sparks to approve Resolution 01- 083, re: Adopt a flexible
32 benefit plan.
33
34 Motion carried unanimously.
35
36 5. Ordinance 2001-003. re: Water rates (3`d reading).
37 Motion by Councilmember Sparks to approve the Consent Agenda as corrected above
38 also removing item number four from the Consent Agenda.
39
40 Motion carried unanimously.
41
42 6. REVIEW ITEMS.
43 a. Tax Increment Financing((TIF) Update (Springsted. Inc. will be present).
Mornson indicated that,due to the changes in the class-rates during the past legislative session,
they hired Springsted, Inc. for the purpose of doing an analysis of the impact on the Tax-
46 increment Districts. Mornson reminded the Council that they have two bonds outstanding that
City Council Regular Meeting Minutes
November 13, 2001
Page 3
are paid for with tax-increment proceeds: Community Center portion of the building(paid for by
2 the Kenzie Terrace tax-increment), and Apache Plaza.
3
4 Mornson stated that the bad news was that they have a reduction in revenues. He added that the
5 good news was that there is additional increment beyond the bond payment to pay for the debt,
6 which means that they have the ability to transfer from a healthy Tax-increment District to a
7 non-healthy district to pay off the debt.
8
9 Mornson added that, when they negotiated the tax-increment package with Super Valu, they
10 negotiated a Short-fall Agreement which states that, if there is ever any short-fall in any year
11 with the amount of increment that they need to pay off their debt, Super Valu is liable for that
12 debt. Mornson added that would be their first recourse.
13
14 Mornson indicated that the only decision to make this evening was to determine if they wanted
15 to include the purchasing of the Hardee's property and the Exhaust Pro property, as well as the
16 Phillips 66 Gas Station in a redevelopment pattern. If so, Mornson continued,then they needed
17 to hold a hearing, put the properties in their budget, and then they would have the ability to
18 purchase the properties and remove them.
19
20 Mayor Pro Tem Horst asked what needed to happen in terms of time-line. Mornson stated that
21 Paul Steinman, Springsted, Inc. would come forward to review his TIF Cash Flow Analysis.
0 Steinman stated that they came in after major tax-reform and examined the four active Tax-
24 increment Districts in the City if St. Anthony and estimated, to the best of their abilities, where
25 they are going from this point forward, given tax-reform.
26
27 Review of the four active TIF Districts:
28 Kenzie Terrace (#1950)
29 Annual Tax Increment-2001 $452,590
30 Annual Tax Increment- 2002 $423,628
31 Community Center Bond Payment ($246,588)
32 Annual Surplus $177,040
33 District Expires 2008
34 Debt Paid Off 2010
35 In 2008,remaining Fund Balance is $2,086,755
36 paid to County(City receives
37 approximately 25-30%back).
38
39 0 Apache/Cub Foods (#9-G)
40 Annual Tax Increment-2001 $231,279
41 Annual Tax Increment-2002 $122,084
42 Apache Bond Payment ($205,922)
43 Annual Deficit ($83,838)
1'Year of Deficit 2005
Debt Paid Off 2013
46 Cumulative Deficit in 2013 ($734,657)
47 District Expires 2019
City Council Regular Meeting Minutes
November 13, 2001
Page 4
01 Developers agreement with Super Valu
2 (Permits City to bill Super Valu for deficits).
3 Use Kenzie Terrace surplus increment.
4
5 Steinman indicated that, in 2005, there would be a deficit in the Cub Foods District, which will
6 need to be covered in 2005. He added that, in 2006, they might be able to apply the remedies of
7 pooling in order to cover that deficit.
8
9 Councilmember Thuesen asked how strong the Short-fall Agreement was with Cub Foods.
10 Gilligan responded that he thought it was quite unquestionable, yet felt that they would probably
11 have a discussion about it in the future with Super Valu. Steinman added that it was uncertain as
12 to whether they would be allowed to use an accumulated fund balance after a district de-certifies.
13
14 Councilmember Sparks asked Mornson if this analysis would be a component in the Financial
15 Strategies. Mornson stated that it would be included.
16
17 ❑ Apache/Hellickson Dental
18 Annual Tax Increment- 2001 $22,369
19 Annual Tax Increment- 2002 $11,833
20 Pay-As-You-Go note- payment ($11,833)
21 Annual Surplus/Deficit $_ 0_
Debt Paid Off(Extended 4 Years) 2010
District Expires 2019
24
25 ❑ Chandler(#58)
26 Annual Tax Increment- 2001 $247,104
27 Annual Tax Increment- 2002 $166,309
28 Supports TIF Budget $1,900,000
29 District Expires 2011
30 Funds Available through 2011 $1,768,406
31 Deficit ($131,594)
32 Revision is necessary:
33
34 Steinman indicated that Chandler was a much more flexible TIF District than Kenzie because it
35 was certified a couple of years later. Therefore, Steinman indicated, they would be able to
36 amend Chandler and use some of the excess funds to do some other projects.
37
38 Mornson indicated that their first option would be to collect on the short-fall from Super Valu.
39
40 Councilmember Thuesen asked at which point tax-increment legislation would stabilize.
41 Steinman indicated that this year's impact of tax-reform legislation on tax-increment was the
42 most direct hit that the tool has ever taken. He added that they do not know when it might
43 stabilize.
10 Gilligan added that legislation has made it much more restrictive over the last few years to create
46 TIF Districts. He stated that the districts that have the most flexibility are the districts that were
47 created between 1982-1990, like Chandler.
City Council Regular Meeting Minutes
November 13, 2001
Page 5
Ol.
2 Current TIF Budget:
3 S/W Quadrant $1,125,000
4 Lots/Twin City Federal $75,000
5 Kentucky Fried Chicken $500,000
6 Apache Plaza Redevelopment $200,000
7 Total TIF Budget $1,900,000
8
9 Budget Amendment/Revisions:
10 S/W Quadrant $
11 Lots/Twin City Federal $
12 Kentucky Fried Chicken $
13 Apache Plaza Redevelopment $
14 Hardee's Building $319,000
15 Exhaust Pro's $
16 Phillip 66 Station $
17 Revised TIF Budget $1,760,000
18
19
20 Mornson indicated that if the city was interested in acquiring any other redevelopment
21 properties, they needed to decide that tonight and schedule a hearing for January 8, 2001.
Councilmember Thuesen indicated that he felt they needed to talk strategically with the
24 corresponding people to aid them in making the decision.
25
26 Mayor Pro Tem Horst stated that he was interested in going forward and scheduling the hearing
27 for January 8, 2001.
28
29 Councilmember Sparks asked who would guide them through these decisions. Mornson
30 indicated that City Staff would aid in their decision-making.
31
32 Councilmember Thuesen expressed his concern regarding the Northwest Quadrant and the
33 holding pattern that they are in with the Shopping Center. Mornson indicated that he felt that the
34 timing of looking at acquiring other redevelopment properties was right.
35
36 Mornson indicated that he wanted Springsted, Inc. to examine the abilities to issue a bond from
37 the Chandler proceeds which gives them the opportunity to do more at one time. Also, Mornson
38 wanted to determine the ability to use the Kenzie money as a loan to the Chandler proceeds.
39
40 Motion by Councilmember Hodson to schedule a public hearing regarding TIF Budget for
41 January 8, 2001.
42
43
aMotion carried unanimously.
46 Mayor Pro Tem Horst asked how tax abatement would be related to the new tax-reform laws.
47 Steinman indicated that it does not relate directly to TIF in any way, but said tax-abatement was
City Council Regular Meeting Minutes
November 13, 2001
Page 6
• a valuable tool to use prior to more restrictive legislation.
b. Resolution 01-084, re: Approve plans and specifications and order advertisement for bid
for 2002 street project(Todd Hubmer, WSB, will be present).
Todd Hubmer, WSB, was present to request that the Council authorize WSB to do the 2002
Reconstruction Project for the City of St. Anthony. Hubmer continued with a review of the
proposed project for the City Council.
Morrison asked how much DNR money was being used. Hubmer responded that they were using
approximately$885,000 which comes close to utilizing all of those funds. Hubmer added that
they would increase their request from $700,000 to $1,200,000 for the new legislative session
due to increase costs in land acquisition and construction since back in 1998.
Motion by Councilmember Sparks to approve Resolution 01-084, re: Approving plans and
specifications and ordering advertisement for bid for the 2002 street project.
Motion carried unanimously.
C. Resolution 01-085, re: No-Fault Sewer Backup Coverage Option(Todd Hubmer, WSB,
and Carl Bennetsen, A.J. Gallagher& Co. will be present).
Todd Hubmer indicated that the League of Minnesota Cities indicated that they were considering
• offering no-fault sewer and sanitary back-up coverage to the City of St. Anthony. He
indicatedthat the City of St. Anthony became eligible for this coverage option on June 1,
2001.
He indicated that he would review the brief details of this coverage, provided by Carl Bennetsen,
Arthur J. Gallagher& Co. of Minnesota, Inc.:
• Coverage is$10,000 per building per year. All buildings served by a single connection
are considered to be a single building. Covers clean-up costs and property damage
caused by sanitary sewer backup, subject to conditions:
the condition must be in the city's sanitary system, not a private line,
FEMA assistance available, then no coverage,
Electric power interruption, 72 hours coverage limit,
National Weather Service designated 100-year storm exclusion,
National Food Ins. Protection(NFIP) insurance coverage or eligibility, or property-
owner's own insurance with flood coverage, no "no-fault sewer"coverage.
Hubmer stated that they were considering this coverage because all of the thirteen claims from
last season would have been covered under this coverage.
Hubmer indicated that, on April 22, 2001,there were ten claimants for sewer back-up, and that
all eight would have been covered under the plan.
Motion by Councilmember Hodson to approve Resolution 01-085, re: No-Fault Sewer Backup
Coverage Option.
Motion carried unanimously.
City Council Regular Meeting Minutes
November 13, 2001
Page 7
•
d. Funding options for City Hall/Community Center Improvements.
Mayor Pro Tem Horst indicated this issue was a result of the Council's direction to City Staff to
explore funding options to renovate City Hall.
Morrison stated that he wanted to briefly summarize Roger Larson's funding options for the
proposed Community Center renovations.
Morrison indicated that there exist two funding options:
1. Designate funding from the HRA Projects Fund of$50,000 for each of the years 2002, 2003
& 2004.
2. Redirect the funds designated for LGA losses associated with the redevelopment of Apache
Plaza,totaling $150,000.
Councilmember Hodson indicated that he was interested in funding the project, but
recommended that they prolong the decision on this for three to six months and see what
legislation will bring.
Councilmember Thuesen indicated that he agreed with Councilmember Hodson's
recommendation to wait, see and hold at this time.
• Mayor Pro Tem Horst stated that he also agreed with Councilmember Hodson. He indicated that
he appreciated the efforts of the task-force for the Community Center renovations.
Councilmember Sparks suggested that they commit to review the project in January.
Councilmember Hodson indicated that he thought reviewing the project in January seemed
appropriate.
Mayor Pro Tem Horst indicated that he felt that the legislative session would impact the decision
and that it may end up being put off until April.
Councilmember Sparks indicated that, as long as they agreed to review the project in January,
she was satisfied.
e. Review City Attorney's letter regarding Mayor vacancy.
Jerry Gilligan indicated that there was a memorandum in this evening's packet which detailed
the legal steps that were necessary in this situation.
Gilligan reviewed the memorandum with the Council. The statute provides that a vacancy in
an office"shall be filled by Council appointment." In the present case, the mayor's
resignation has created a vacancy, and the appointment of the new mayor must be made by
• the City Council.
Mayor Pro Tem Horst indicated that, if someone were appointed this evening, they would
only serve until the end of 2001 and would then need to be re-appointed in 2002 and run for
City Council Regular Meeting Minutes
November 13, 2001
Page 8
election in 2003. He clarified for the viewers on cable that they discussed a lot of the details
regarding the mayoral position at the joint meeting between the City Council and the School
Board back on October 29, 2001.
Councilmember Hodson indicated that he was interested in the position of Mayor.
Motion by Councilmember Thuesen, second by Councilmember Sparks that Randy Hodson
complete the remaining term of Mayor of the City of St. Anthony.
Motion carried 3-0. Hodson abstained.
Mayor Pro Tem Horst indicated that Councilmember Hodson needed to take his oath of
office tomorrow with City Clerk Connie Kroeplin.
Mornson indicated that Councilmember Hodson needed to submit a formal letter of
resignation for his City Council seat.
Councilmember Thuesen indicated that he did not feel it was necessary to hold a special
election for the position of City Council member.
Councilmember Hodson indicated that he had a candidate in mind for the City Council
• position.
Councilmember Sparks indicated that she felt that they should go through a formal
application and interview process with candidates.
Mayor Pro Tem Horst indicated that he also had a candidate in mind.
Councilmember Hodson stated that he was part of the interviewing process a couple of years
ago. He indicated that Jerry Faust was a very worthy candidate at that time and was the
person he had in mind for the soon-to-be-vacant seat on the City Council. He added that
Faust had six years of experience on the Planning Commission, and four years on the City
Council.
Councilmember Thuesen suggested that the two-year appointment be given to someone with
a great deal of knowledge, experience and connections. He stated that he supported
Councilmember Hodson's recommendation to appoint Jerry Faust to the City Council.
Mayor Pro Tem Horst indicated that he also supported the appointment of Jerry Faust to
fulfill the remaining portion of Councilmember Hodson's term.
Mayor Pro Tem Horst stated that they had the majority rule that Jerry Faust be appointed to
fill the seat of the soon-to-be-vacant seat on the City Council.
• Mornson indicated that interviews for the seat appointment could happen in December, and
formal appointment could take place early next year.
City Council Regular Meeting Minutes
November 13, 2001
Page 9
• Councilmember Sparks expressed her concern over rushing into the decision of what to do
with the Council vacancy.
Councilmember Hodson stated that he felt the formal election and interview process would
be postponing the inevitable and would still have the same outcome.
Councilmember Hodson resigned from the City Council of the City of St. Anthony.
Motion by Councilmember Thuesen to accept Councilmember Hodson's resignation.
Motion carried 2-1. Councilmember Sparks voted no.
Councilmember Sparks stated that she felt they were moving too quickly, and that they
should discern who else may be interested in the position.
Motion by Councilmember Thuesen to appoint Jerry Faust to serve Randy Hodson's
remaining term on the City Council.
Motion carried 2-1. Councilmember Sparks voted no.
7. INFORMATION AND ANNOUNCEMENTS.
• Mornson indicated that he had distributed a schedule containing the future Council Agenda
Items and Meeting Dates. He requested that the Councilmembers hold onto the schedule, as
there are many important meetings up-coming:
• November 27 City Council Meeting: Review of Emergency
Operation Plan with Police and Fire Chiefs
• December 11 City Council Meeting: Public hearing on 2002 budget
• November 19 Interview prospective developers for Apache Plaza
• November 27 Interview of prospective developers for Stonehouse
Area(3 proposals)
• December 6 12-3 p.m., Special information work session with Jim
Prosser to review Apache and the Stonehouse
• December 11 5 p.m. interviews with Planning and Parks
Commissioners, if needed
• January 8, 2002 Public hearing on TIF amendments
• City Manager and Mayor will meet with Metropolitan Council, Senator Marty,
DNR, Kiwanis, etc.
• Central Park construction to end November 21, 2001
Councilmember Sparks indicated that Action and CPC (Community Prevention Coalition) in
SANBE was meeting on November 15, 2001 to discuss ways to coordinate efforts to serve
youths in the City of St. Anthony. The meeting was to be held at the City Hall in St. Anthony at
7:00 p.m.
• Councilmember Thuesen indicated that he had the pleasure and honor of talking about the
government with the third graders of Wilshire Park a couple of weeks ago. He added that it was
City Council Regular Meeting Minutes
November 13, 2001
Page 10
• a great experience, and that the students asked some really insightful questions.
Mayor Pro Tem Horst indicated that he attended the diversity program at Concordia. He stated
that it was an excellent program which he thoroughly enjoyed.
Mayor Pro Tem Horst congratulated Councilmembers Thuesen and Hodson on their recent re-
elections.
Councilmember Thuesen commended Mayor Pro Tem Horst on his performance as Mayor Pro
Tem during a difficult time.
8. ADJOURNMENT.
Motion by Councilmember Sparks to adjourn the meeting at 9:01 p.m.
Motion carried unanimously.
Respectfully submitted,
Courtney Seesz
• TimeSaver Off Site Secretarial, Inc.
Mayor& -ft=t r'J
ATTEST:
City Clerk
•