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Folder: CC MINUTES AND AGENDAS 2002
Document: CC MINUTES 09102002
City Council Regular Meeting Minutes
September 10, 2002
• Page 1
CITY OF ST. ANTHONY
2
3 CITY COUNCIL REGULAR MEETING MINUTES
4
5 September 10, 2002
6
7 CALL TO ORDER
8 Mayor Hodson called the meeting to order at 8:00 p.m.
9
10 PLEDGE OF ALLEGIANCE.
11 Mayor Hodson invited the Council and audience to join him in the Pledge of Allegiance.
12
13 ROLL CALL.
14 Present: Mayor Hodson; Councilmembers Horst, Sparks, Thuesen, and Faust.
15 Absent: None.
16 Also Present: City Manager Mike Mornson.
17
18 CONSIDERATION, DISCUSSION, AND POSSIBLE ACTION ON ALL OF THE FOLLOWING
19 ITEMS.
20
21 I. APPROVAL OF SEPTEMBER 10, 2002 CITY COUNCIL MEETING AGENDA.
22 Motion by Councilmember Thuesen to approve the City Council Meeting Agenda of September
9 10, 2002.
25 Motion carried unanimously.
26
27 II. PROCLAMATIONS AND RECOGNITIONS.
28 None.
29
30 III. COMMUNITY FORUM.
31 Mayor Hodson invited residents to come forward at this time and address the Council on items
32 that are not on the regular agenda.
33
34 Hearing none, Mayor Hodson moved forward with the agenda.
35
36 IV. CONSENT AGENDA.
37
38 1. Consider August 27, 2002 Council meeting minutes.
39 2. Consider licenses and permits.
40 3. Consider payment of claims.
41 4. Resolution 02-065 re: Consider approval of settlement agreement with Barbarossa and
42 Sons, Inc.
43
44 Councilmember Sparks requested that the Minutes be removed for discussion.
40 Motion by Councilmember Sparks to approve the remaining Consent Agenda items.
47
City Council Regular Meeting Minutes
September 10, 2002
Page 2
1P Motion carried unanimously.
3 Councilmember Sparks requested the following changes: On Page 3, first paragraph, line 4
4 strike everything after the word "would" and add "maintain some consistency within
5 neighborhoods." On Line 10 indicate that the essence of the discussion was that the Planning
6 Commission will look at the design and review process if they receive direction from the City
7 Council. On Page 4, line 12 change "youth employment program" to "youth restitution
8 program." On line 30 change"Apache Plaza" to "St. Anthony Shopping Center."
9
10 Councilmember Faust requested the following change: On Page 5, line 5, change "Apache
11 Plaza"to "St. Anthony Shopping Center."
12
13 Councilmember Horst requested the following changes: Correct the spelling of Melcher
14 throughout the document to be"Melsha."
15
16 Motion by Councilmember Sparks to approve the Minutes of August 27, 2002 with the noted
17 corrections.
18
19 Motion carried unanimously.
20
21 V. PUBLIC HEARINGS.
22 None.
0 VI. REPORTS FROM COMMISSIONS AND STAFF.
25 A. Update on the City's Parks.
26 Chair Jindra addressed the Council and reported that the wettest summer on record has caused
27 some problems in the City's parks but things are improving.
28
29 Chair Jindra indicated all the field work is almost done and they are closely watching drainage
30 issues. She then indicated that the fields were seeded but will be redone in areas washed out by
31 the last rainstorm. She also indicated that the new shelter is behind schedule due to the large
32 amounts of rain and its location in a low area.
33
34 Chair Jindra indicated the basketball court, trees and landscaping would be completed next
35 spring and the Commission feels all is going well at the park.
36
37 Chair Jindra reminded residents that the area is a construction site and asked them to stay out of
38 the park and off the fields to avoid damaging the newly seeded grass.
39
40 Councilmember Sparks asked whether the contractor expected to complete the shelter by skating
41 season. Chair Jindra indicated the shelter would not open until next year.
42
43 Councilmember Thuesen asked if the wet area in the park would drain better than it does now so
44 that there would be no chance of flooding and damaging the new pavilion. Chair Jindra
40 indicated that drain tile would be installed and the area built up to eliminate the drainage issue.
City Council Regular Meeting Minutes
September 10, 2002
Page 3
Councilmember Thuesen commented that there would be no ball played on the fields next
summer to allow time to establish the fields. Chair Jindra indicated the Commission is hoping
3 the fields will be played on next summer.
4
5 Councilmember Thuesen asked if the pavilion would be ready. Chair Jindra indicated that it
6 would be.
7
8 Councilmember Horst commented that it does not look like any grass is growing. Chair Jindra
9 indicated that most of it washed away and said it would be reseeded this weekend.
10
11 Councilmember Horst indicated he had thought that the grass needed a season to establish before
12 being played on. Chair Jindra indicated the Commission is hoping the grass will grow this fall to
13 the point of being able to mow it and then grow in the spring and be ready to be played on for
14 summer.
15
16 Councilmember Thuesen indicated he could see noticeable grass shortly after it was hydro
17 seeded. He then said he is hopeful that they hydro seeding will shorten the process.
18
19 Mayor Hodson indicated he was at the football game this past Friday and after heavy rains it
20 seems there is a large amount of drainage being redirected and it is flooding out the track area of
21 the football field. Chair Jindra indicated that the sprinkler system was left on in addition to the
22 large rainfall amounts. She then indicated that is a very wet area of the park and drain tile will
be installed. She also noted the Commission took a tour last night of the park and that is
0 something that needs to be dealt with.
25
26 Mayor Hodson asked for an update on Silver Point. Chair Jindra explained that the City held up
27 the contract while waiting for funds from the DNR and went past the 100 days which means the
28 contractor does not have to honor the original bid. She then said that the Commission is hoping
29 that the DNR will provide the additional funds necessary so that the shelter can proceed and be
30 built yet this winter.
31
32 Councilmember Horst commented that he was not comfortable with spending$257,000 on the
33 warming house in the first place and was very concerned to see that price jump to $293,000. He
34 then suggested that the City seek other bids in an attempt to build the building for the original
35 budgeted amount. He also commented it may not be possible to get additional DNR funding.
36
37 Mr. Mornson indicated the City has $740,000 allocated this year and suggested allocating the
38 funding that would have been used for matching grants for property improvements, if necessary.
39 He further commented that Staff feels confident that they have a case to request more funds from
40 the DNR.
41
42 Councilmember Horst questioned whether the DNR approved of the plans. Mr. Morrison
43 indicated the only condition on the grant was that the City match the grant 50/50 and that is what
44 the City is doing. Chair Jindra explained that the structure has not changed, the difference is it
was bid out earlier this summer in conjunction with another project and that lowered the bid.
She then commented that the fact that the structure has to withstand great amounts of water adds
411 to the cost.
City Council Regular Meeting Minutes
September 10, 2002
Page 4
Councilmember Horst indicated he was not entirelycomfortable with building the shelter in that
g
3 location because it is so expensive and has the potential to be damaged and cost more money for
4 repair and replacement.
5
6 Councilmember Faust commented that he was not pleased with the fact that the bid went up by
7 10%. He then asked if it was possible to re-bid with another company. Chair Jindra indicated
8 the Planning Commission discussed that but decided that the costs involved in the bidding
9 process and the time factor pushing the construction into winter would very likely negate any
10 cost savings. She then indicated that Mr. Hartman is involved in negotiations with the contractor
11 at this time.
12
13 Councilmember Faust indicated he does not like being held hostage. Chair Jindra indicated the
14 Planning Commission felt the same way and noted they hope to further negotiate with the
15 contractor.
16
17 Mayor Hodson commented that the costs of re-bidding and the delay in construction pushing the
18 project into winter would negate the savings to the City so he would recommend proceeding
19 with negotiations with this contract.
20
21 Councilmember Thuesen indicated he was not happy with the increase and noted it would cost
22 an additional $9,500 for winter construction. He then suggested that the City needs to keep
residents informed on this matter so that they are aware of the situation and do not think the City
0 is spending$300,000 on a warming house during tight budget times.
25
26 Chair Jindra indicated the Commission would like to make residents aware that they are not
27 coming to Council for additional monies. She then said it is a DNR problem and she hopes to
28 solve it through them and not involve extra expense for the City.
29
30 Councilmember Horst asked what would happen if the DNR will not pay. Chair Jindra indicated
31 that the engineer feels the DNR will grant the money but has no definite answer.
32
33 Councilmember Sparks thanked Chair Jindra for all the hard work on the project.
34
35 Mr. Morrison indicated that Staff is looking for direction and Council needs to address whether
36 there is a need for a temporary facility. He then said that, if the project is under construction
37 within 30 days, there would not be skating and no need for a temporary facility.
38
39 Mayor Hodson indicated his recommendation is to proceed and get this done. Councilmember
40 Thuesen indicated he would like to proceed with permanent structure but not with temporary
41 warning house. Councilmember Sparks said she did not think it made sense to have skating if it
42 is under construction.
43
44 Councilmember Horst indicated he is concerned that people think that because the funds are
coming from the DNR the City does not need to worry about it. He then said that he feels that
all this money could be better spent somewhere else but said he would be fine with it if it is the
47 will of the Council.
City Council Regular Meeting Minutes
September 10, 2002
Page 5
Motion b Councilmember Sparks to authorize the expenditure of u to $302,836.30 to construct
Y P p P
3 the warming house at Silver Point Park.
4
5 Ayes—4. Nays— I(Horst). Motion carried.
6
7 B. Update on Apache Plaza redevelopment.
8 Mr. Prosser addressed Council and provided an update on the Apache Plaza redevelopment. He
9 then indicated that he feels developer has been very diligent in proceeding with this project.
10
11 Mr. Prosser indicated the efforts with the developer have concentrated on identifying major cost
12 factors for the development as that governs the financial feasibility. He then said that the
13 developer is negotiating on an option to purchase.
14
15 Mr. Prosser indicated that there have been some discussions with property owners in that area to
16 see where property acquisition costs might be.
17
18 Mr. Prosser indicated that funding assistance may be available through the Metropolitan Council
19 and the Department of Trade and Economic Development. He then said that the developer is
20 working with the City and has provided information in support of the applications and those
21 have been submitted.
22
Mr. Prosser indicated that a second avenue for funding is extraordinary funding. He then said
that his firm has suggested the developer take a look at phasing the development to keep costs
25 down and better position the development to receive future funding sources.
26
27 Mr. Prosser indicated that he anticipates that the developer will come before Council within the
28 next 30 to 45 days with preliminary plans for the center that include a phasing plan. He then
29 indicated that, after coming to Council, the next step would be that the developer go back to the
30 community to get feed back and then present to Council a refined development plan.
31
32 Councilmember Sparks commented that it sounds like progress is being made and the option to
33 buy from the bank means there is more concrete information than was available. Mr. Prosser
34 cautioned that the developer is negotiating an option to buy but has not yet purchased the
35 property.
36
37 Mayor Hodson asked if the developer would be bringing a variety of options to Council for
38 consideration. Mr. Prosser indicated his firm has given the developer direction that ideas should
39 be presented to Council. He then said that his understanding was that the community saw
40 Apache as a source of pride and energy for the community and they are looking for something to
41 replace that. He further indicated that the plan would not look exactly like the concept plan but
42 the community input and dialogue from Council should drive the design not the developer
43 making decision.
44
Mayor Hodson indicated Council had put together a task force to develop concepts for the area.
He then said he would not be in favor of a giant candle manufacturing facility in the middle of it
City Council Regular Meeting Minutes
September 10, 2002
• Page 6
but would entertain options that include a gathering spot, homes for rental and retail sale, and
2 retail.
3
4 Councilmember Faust asked if Mr. Prosser was comfortable with the timeframe. Mr. Prosser
5 indicated he feels the developer is using his time wisely and will be prepared to present options
6 to Council within 30 to 45 days.
7
8 C. Update on Financial Strategies.
9 Jim Prosser, Ehlers & Associates, addressed the Council and provided an overview of the key
10 financial strategies. Mr. Prosser commended Council and Staff for the very serious way they
11 undertook this review.
12
13 Prosser reviewed the key financial strategies for the City and they are as follows:
14
15 *Monitor Apache Redevelopment
16 *PW and Fire Station Option Analysis
17 *Prepare Facility Needs Study
18 *Housing Options Study
19
20 *Review Fund Balance Policy
21 *Prepare Debt Study
22 *Prepare Alternative Revenue Analysis
9 *Update Vehicle/Equipment Replacement Program and Funding Sources
25 *Annual CIP
26 *Prepare Non-Annual Recurring Maintenance Schedule
27 *Revise Assessment Policy to Address Pavement Management Activities. Conifidnrdsing
28 Assessed Portions and Interest Rate
29
30 *Property Tax Need Review
31 *Review Budget Option Analysis as Part of Budget Process
32 *Prepare Three Year Budget Forecasts
33 *Identify a Limited Number(1-3) of Selected Services for Competitive Pricing on
34 Annual Basis
35
36 *Accept Key Financial Strategies
37 *Adopt Debt Policies as Outlined in Credit Section of Report
38
39 *Revise Fee Structures Annual to Reflect Changes in Cost of Services
40 *Complete Evaluation of On-Sale Liquor Sale Operation
41
42 Mr. Prosser thanked Staff for working so hard on this and said they did most of the work. He
43 also thanked Council for their efforts and insight into the process.
44
Councilmember Thuesen expressed his appreciation for the process and what it has done for the
City and will do in the future. He then said he was skeptical when the process began but he has
47 learned a lot along the way and feels certain that this will help future Councils.
City Council Regular Meeting Minutes
September 10, 2002
• Page 7
Councilmember Sparks asked Mr. Mornson how he saw the City proceeding and which pieces
2 Council would work on in the next year or two. Mr. Mornson indicated the key financial
3 strategies would become part of the budget book and would be discussed at the annual goal
4 setting retreat. He then said that 13 of the 19 action steps have already been started.
5
6 Councilmember Faust thanked Mr. Prosser, Mr. Mornson and the rest of the Staff for their
7 assistance with this matter. He then said that the strategies needed to be a living document to
8 assist the City with long term planning.
9
10 Mayor Hodson said he would like to go on record and the City Manager and his Staff credit for
11 the process and the recommendation to have Mr. Prosser look at this. He then said that he is
12 impressed to hear that Staff has begun implementing 13 of the 19 action items.
13
14 Mayor Hodson thanked Mr. Prosser for the presentation.
15
16 VII. GENERAL POLICY BUSINESS OF THE COUNCIL.
17 A. Consider Resolution 02-064, re: Adopt proposed 2003 tax levy and budget.
18 Mr. Mornson reviewed the resolution with the Council and indicated that the general fund levy
19 was reduced by$31,340. He then explained that due to the projected local government aid the
20 City was asked to reduce its levy amount. Councilmember Faust commented that the State did
21 not ask, it told the City to lower the amount.
22
Mayor Hodson suggested Council should discuss the assessment policy as suggested by Mr.
Prosser. Mr. Mornson indicated that Staff could survey what other communities are doing and
25 then suggested holding a work session to discuss it. He then indicated the City assesses 35%
26 now and would be asking those that have not had their streets done yet to pay more as well as
27 assessing for sealcoating and crack filling.
28
29 Mr. Mornson commented that the City does not assess residents on MSA road as that was a
30 policy set by Council in 1993. He then said that there have been resident complaints that the
31 policy is not fair to other residents who have to pay for roads.
32
33 Mr. Mornson indicated the City's truth-in-taxation hearing would be held on December 9, 2002.
34
35 Motion by Councilmember Faust to adopt Resolution 02-064, re: Adopt proposed 2003 tax levy
36 and budget.
37
38 Motion carried unanimously.
39
40 Mr. Mornson asked for Council feedback on his proposal to use the revenue from Tires Plus to
41 help fund the capital equipment for 2003.
42
43 Mayor Hodson indicated he was comfortable with the recommendation.
44
Councilmember Sparks asked what the money would ordinarily be used for. Mr. Mornson
indicated the funds have been accumulating each year and total $325,000. He then explained
47 that the City gets $75,000 in lease payments from Tires Plus each year and takes $15,000 to set
City Council Regular Meeting Minutes
September 10, 2002
Page 8
aside for future building improvements and maintenance. He further commented that the City
bought the Tires Plus building in 1996 with HRA money and the intent was to take the lease
3 payments to pay the City back.
4
5 Councilmember Sparks asked if the money would be needed if the City needs to rebuild the
6 store. Mr. Morrison indicated Staff had not considered that as an option for the funds at this time.
7 He then said that the property at Apache is a valuable piece of real estate and commented that
8 Staff has not looked at the difference between what the City would get for the property and what
9 the new store would cost or at funding that amount.
10
11 Councilmember Faust commented that he felt this would be a good use for the funds.
12
13 Mr. Mornson indicated there was time for consideration of the proposal as Council has until
14 December to approve the budget.
15
16 Councilmember Sparks indicated she was not comfortable with the recommendation at this time.
17
18 Mayor Hodson indicated he was comfortable with the City Manager's recommendation for how
19 to proceed with the budget.
20
21 Mr. Morrison explained that Council had said it did not want to borrow money to pay for capital
22 equipment and would prefer to use cash on hand and this is Staffs proposal for funding capital
0 equipment.
25 Councilmember Sparks asked if Mr. Morrison felt the recommendation should be reconsidered
26 based on Mr. Miller's letter. Mr. Morrison indicated there was time between now and December
27 for more consideration of the budget. He then said that a pumper truck that is ordered now is not
28 delivered for 12 months, leaving time to look at other funding.
29
30 Councilmember Horst commented that in looking back at other Councils one of the things he
31 noticed is that they were conservative and saved money for rainy days. He then said that he
32 would like to take heed of Mr. Miller's letter and consider setting up reserves for future use.
33
34 Councilmember Thuesen commented that former Councils were very conservative but said one
35 could debate they were conservative at the expense of capital improvements and that is why
36 there are financial difficulties now in funding those capital improvements. He then said that
37 there is a time to save and a time to buy and it is a fine line between the two but sometimes
38 spending a little money now saves you more in the long run.
39
40 Councilmember Horst commented that it is more than capital improvements as it had generally
41 been a policy to keep some in reserve and this Council should bear in mind there may be
42 opportunities to save for future rainy days. He then said that previous Council had money in
43 reserves and this Council voted to use it because it did not look like it would rain, but it did.
44
0 Councilmember Thuesen commented that the reserves grew at a cost to the City's infrastructure.
City Council Regular Meeting Minutes
September 10, 2002
Page 9
Mayor Hodson said he was comforted to know the City Manager and financial staff keep
themselves informed through the League of Minnesota Cities and can advise Council on these
3 types of situations.
4
5 VIII. REPORTS FROM CITY MANAGER AND COUNCILMEMBERS.
6 Mr. Mornson reported that the kick off meeting for the public works task force was held on
7 September 3, 2002. He then said the next step would be a tour of the existing fire station and
8 public works facility and tours of new facilities. An open house has tentatively been set for
9 December 10, 2002 and February 18, 2003.
10
11 Mr. Mornson reported that Culvers had executed a purchase agreement for the purchase of
12 Exhaust Pro. He then said he met with Culvers last week and there will be some changes to the
13 developers agreement because they would like Hardee's to come down immediately in order to
14 allow the parking lot to be paved before winter to facilitate a March opening.
15
16 Mr. Mornson indicated the City would have Hardee's demolished within two weeks.
17
18 Mr. Mornson reported that the City closed on 4029 Shamrock.
19
20 Mr. Momson reported that the Salvation Army property should begin being improved by next
21 year at this time.
22
Mr. Mornson reported that the candle manufacturer was to be out of the facility by September 1,
2002 and he is not so the City sent a letter indicating he is in violation of the conditional use
25 permit and was informed that they intend to work on getting out by the end of the week.
26
27 Mr. Mornson asked whether any Councilmembers wanted to sit at a booth at the shopping
28 center. Council did not have an interest in doing so.
29
30 Mr. Momson indicated that the Greater Metropolitan Housing Agency would be coming to the
31 next meeting to talk about the revolving loan program and HRA money from the Department of
32 Housing. He then indicated that he had heard that one resident used that service after he
33 obtained a bid for roofing to verify whether the bid was good.
34
35 Mayor Hodson asked that information concerning the program run on the cable channel. Mr.
36 Mornson indicated he would provide quarterly reports on the matter as a lot of residents do not
37 know the program is available.
38
39 Councilmember Sparks asked how residents could obtain information on the program. Mr.
40 Mornson indicated residents should call Sue.
41
42 Councilmember Horst reported that he had attended the Community Services Board meeting and
43 the discussion revolved around belt tightening and budget revisions. He then encouraged
44 residents to take advantage of the programs available.
Councilmember Sparks had no report.
47
City Council Regular Meeting Minutes
September 10, 2002
Page 10
Councilmember Thuesen reported that he had contacted Kay Andrews of Northwest Youth and
Family Services concerning his intent to try to attend some monthly meetings during the school
3 year and most meetings in the summer and she seemed comfortable with that.
4
5 Councilmember Faust indicated he serves on the Northeast Diagonal Use Transit Policy
6 Advisory Committee and indicated he has a copy of the recently finished Land Use Transit
7 Study for the area if anyone is interested in reviewing it.
8
9 Mr. Morrison indicated an update would be provided at the next meeting on the Land Use Transit
10 Study.
11
12 Mayor Hodson indicated that he would need to ask his alternate to attend the North Suburban
13 Cable Commission meeting as he is unavailable. He then said that there is the potential for the
14 City's contributions to that organization to go up 10 to 15% as the Commission has spent down
15 its reserves over the last few years.
16
17 Mayor Hodson asked Staff to look into posting signs in the park asking residents to keep off the
18 grass and away from the construction areas. Mr. Mornson agreed to work with Staff to have
19 some signs made up and said that the grass would be monitored to ensure it is ready for activity
20 next summer.
21
22 IX. INFORMATION AND ANNOUNCEMENTS.
0 None.
25 X. MISCELLANEOUS INFORMATIONAL DOCUMENTS.
26 None.
27
28 XI. ADJOURNMENT.
29 Motion by Councilmember Horst to adjourn the meeting at 9:30 p.m.
30
31 Motion carried unanimously.
32
33 Respectfully submitted,
34
35
36 Joan Lenzmeier
37 TimeSaver Off Site Secretarial, Inc.
38
39 _ Mayor
40 ATTEST:
41 City Clerk
42
43
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