HomeMy WebLinkAboutCC MINUTES 12082003 Meeting Sheet
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Folder: CC MINUTES AND AGENDAS 2003
Document: CC MINUTES 12082003
City Council Regular Meeting Minutes
December 8, 2003
Page 1
CITY OF ST. ANTHONY
2
3 CITY COUNCIL REGULAR MEETING MINUTES
4
5 DECEMBER 8, 2003
6
7 CALL TO ORDER
8 Mayor Hodson called the meeting to order at 7:01 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 DECEMBER 8,2003,CITY COUNCIL MEETING AGENDA.
Motion by Councilmember Sparks, seconded by Councilmember Thuesen, to approve the City
Council Meeting Agenda of December 8, 2003.
24
25 Motion carried unanimously.
26
27 II. PROCLAMATIONS AND RECOGNITIONS.
28 A. Presentation of an Appreciation Plaque to Councilmember AmySparks.
29 Mayor Hodson presented Councilmember Sparks with a plaque to express grateful appreciation
30 for her years of service. Councilmember Sparks stated she wanted to encourage more people to
31 run for office, as it was a wonderful experience.
32
33 III. COMMUNITY FORUM.
34 Mayor Hodson invited residents to come forward at this time to address Council regarding items
35 that were not on the regular agenda.
36
37 Dennis Cavanaugh, 2909 St. Anthony Boulevard, stated he wished to thank Councilmember
38 Sparks for her years of service. He added Councilmember Sparks was involved with the
39 community in a very deep way and he appreciated what she did for the City. He indicated he
40 hoped Councilmember Sparks would continue with her many other activities, as St. Anthony
41 Village really needed her.
42
43 IV. CONSENT AGENDA.
A. Approve November 25, 2003. regular Council meeting minutes.
16 B. Consider licenses and permits. _
46 C. Consider payment of claims.
City Council Regular Meeting Minutes
December 8, 2003
Page 2
2 Councilmember Thuesen requested the removal of Consent Agenda Item A.
3
4 Motion by Councilmember Thuesen, seconded by Councilmember Sparks, to approve Consent
5 Agenda Items B and C.
6
7 Motion carried unanimously.
8
9 Motion by Councilmember Faust, seconded by Councilmember Sparks, to approve Consent
10 Agenda Item A.
11
12 Ayes—3.Nays—0.Abstains—2 (Horst.Thuesen). Motion carried.
13
14 V. PUBLIC HEARINGS.
15 A. Resolution 03-102. re: Truth in Taxation
16 Mayor Hodson opened the public hearing at 7:07 p.m.
17
18 City Manager Mornson noted the State mandated truth-in-taxation laws required cities to provide
19 Hennepin and Ramsey Counties with a certified 2004 budget and tax levy.
20
21 Mr. Mornson explained the current year's general fund budget totaled $3,776,400 compared to
$3,844,600 for 2003, which represented a$68,200 decrease or 1.77% less. He noted the 2004
budget consisted of no new staff positions or programs and was modified to adjust to a$267,348
24 reduction in Local Government Aid. He stated the changes and adjustments in the budget
25 included the following:
26 1. Budget Cuts and Adjustments $ 26,500
27 2. Permanent Reduction in P/W Position $ 30,200
28 3. Eliminate One Community Service Officer $ 10,400
29 4. Additional Expenditure Reductions $ 64,700
30 5. 60% Levy Back for LGA Loss $160,409
31
32 Mr. Morrison indicated the State imposed levy limits for all cities to insure cities would not
33 simply pass on their LGA reductions. He stated St. Anthony's levy limit for 2004 ($2,329,036)
34 consisted of taking last year's budget levy and adding 60% of the loss in State Aid.
35
36 Mr. Morrison explained the City portion for a property with a taxable value of$200,000 was
37 equal to $942.80, which represented an increase of$172.24 for a property with a taxable value
38 last year of$183,900. He noted a review of the increase was as follows:
39 1. Budget $40.23
40 2. Roads ($ 5.04)
41 3. Fire Truck $24.41
42 4. Public Works Facility $66.04
43 5. Fire Station $46.85
6. Tax Abatement ($ .23)
16 7. PERA Rate Increase ($ .02)
46
City Council Regular Meeting Minutes
December 8, 2003
Page 3
Mr. Mornson noted when lookingat a breakdown of the 2004 increase the majority of the
J h'
2 increase($137.30 or 79.7%)was for the debt issued for a new fire truck, the new public works
3 facility and the new fire station.
4
5 Mr. Mornson noted$7,771,054 in grants had been obtained by the City in the past six years. He
6 indicated the City also applied to the Met Council for a grant to provide an open-space park area
7 at Apache Plaza for$900,000 and for a federal grant of almost$750,000 for possible
8 transportation improvements. He stated the City would have received $9.2 million in grants
9 within the last six years if the applications to the Met Council and the federal grant were
10 successful.
11
12 Mr. Mornson indicated the Kenzie Terrace TIF District was decertified to offset some of the cost
13 of the new facilities. He explained the average cost savings for desertification of the District
14 totaled$65.10 and added $335,500 to St. Anthony's tax capacity, which was reflected on the
15 current Truth-in-Taxation Statements. He added an additional reduction in taxes would appear
16 on the final property tax statements due to the refinancing of the 1993, 1994 and 1995 Road
17 Improvement Bonds, with average savings equal to $38.78.
18
19 Mr. Mornson explained this was the fourth or fifth meeting held by Council regarding the 2004
20 budget and all key executive staff were in attendance and available to answer questions.
21
Mr. Mornson recommended Council approve Resolution 03-102 setting the 2004 property tax
0 levy as presented to comply with State law and truth-in-taxation requirements. He noted this
24 included a reduction in the Road Improvement Levy of$112,618.
25
26 Dennis Cavanaugh, 2909 St. Anthony Boulevard, noted he had never enjoyed living in St.
27 Anthony Village more than at present; however, to him property taxes represented cash"I have
28 to come up with." Mr. Cavanaugh listed other taxes, insurances and assessment that also had or
29 would increase, which also represented cash expenses to a homeowner.
30
31 Mr. Cavanaugh indicated he felt"we have a middle-class squeeze going on." He stated the
32 homeowner needed empathy, as the economy had changed; therefore, a review of what was
33 being paid for services and how the City was paying for them might be needed. He cited a Star
34 Tribune article that indicated St. Anthony Village was "number one"on the property tax list. He
35 noted residents living in Hennepin County were paying a little less.
36
37 Mr. Cavanaugh indicated property tax reform was more bad news for residential owners, as they
38 could not pass increases on to anyone. He noted it had been said government should be made
39 more productive in the same way businesses were and asked how a resident went about
40 obtaining this productivity. He added the Taxpayers League of Minnesota had done more
41 damage than anyone.
42
43 Mr. Cavanaugh stated he could ask the City's department heads many questions about
productivity; however, he was not equipped to do so because he"did not have the language." He
provided copies of an example of City productivity to Council, which related to the City's fire
46 department and its activities. He indicated there was"quite a vogue" for fees, which meant
9
City Council Regular Meeting Minutes
December 8, 2003
• Page 4
1 residents were paying property taxes along with fee charges. He noted the report indicated many
2 of the calls came from the St. Anthony Nursing Home, whose property taxes had decreased. He
3 added it might be appropriate to charge a fee after a certain number of calls.
4
5 Mr. Cavanaugh indicated another area of concern was mutual aid calls,which were made by
6 another community that did not have all of the necessary equipment to handle a call. He noted
7 St. Anthony Village was a resource to the larger community because of its large fire department.
8 He suggested a fee be charged for these calls, as some of these communities would be willing to
9 pay the fee.
10
11 Mr. Cavanaugh stated it was hard for residents to know "what the benchmark is." He suggested
12 the option of approaching the Legislature collectively, which would hopefully empower
13 residents to make changes in property taxes. He indicated the development of certain measures
14 of productivity might be another option.
15
16 Mr. Cavanaugh noted his final thought related to the fire station. He stated he should be happy
17 the fire station left his neighborhood, as he had benefited and the change was dramatic. He
18 indicated he did not think the City appreciated what it was doing by locating the station in a
19 residential area and added the houses in the surrounding were being sold for a reason. He also
20 questioned the architecture of the building, as, in his opinion, the fire station would look better
21 than the community center. He noted the main responsibility of the Fire Department appeared to
be responding to medical calls and asked if the architecture and landscaping were needed to
0 handle medical calls. He suggested the Fire Department's current temporary location be
24 considered, as it seemed to be working. He added the opportunity should be taken to combine
25 police and fire at that location, which would make available needed community center space. He
26 suggested services would still remain at a high level if this action were taken.
27
28 Hugh Gallagher, 3112 Hilldale Avenue NE, stated he had been a St. Anthony resident for 31
29 years. He indicated the St. Anthony portion of his taxes went up 30%and 60%was due to the
30 fire station and public works building. He asked what the additional 40% included, as it
31 appeared the budget did not increase from the past year to the current year. Mr. Mornson
32 responded the other main increase was the additional $160,000 levied, which was 60%of the
33 State aid cut. He explained there were three components to the levy increase: the public works
34 building and fire station, an equipment certificate issued for a fire truck and the $160,000 levied
35 for the general fund.
36
37 Mr. Gallagher asked if copies of the budget presentation were available to residents. Mr.
38 Morrison replied they were.
39
40 Councilmember Faust explained the State had given the City$267,000,which would reduce the
41 amount needed from the taxpayers; however, that amount had been taken away. He noted the
42 State allowed the City to levy 60%of that amount, which equaled $160,000, and that was called
43 property tax reform. He added the property taxes of residents increased because of the lost
0 $267,000, even though the City's overall budget was reduced.
City Council Regular Meeting Minutes
December 8, 2003
Page 5
1 Councilmember Sparks noted State payments should be decreasing and City payments would be
2 increasing, as that was the goal.
3
4 Councilmember Faust discussed another tax reform that took place a few years ago where the
5 school levy was stopped and State aid was given to the schools, which was charged against all
6 commercial and seasonal recreational property. He noted the State did not tell taxpayers they
7 had to raise that tax levy to get the amount of money needed and, in addition, the schools had to
8 go back to get more money, as it was shifted away from them.
9
10 Councilmember Faust stated he agreed with Mr. Cavanaugh when he indicated there was a shift
11 of tax burden when commercial properties and apartments were compressed and made less or
12 closer to residential taxes. He noted the commercial to residential ratio had been 3:1 at one time;
13 however, it was currently down to 1.5-1.7:1. He added the same budget was still needed;
14 however, it was obtained from a different group. He noted this also was under property tax
15 reform.
16
17 Councilmember Faust stated he was often at the Legislature discussing how the tax burden gets
18 "pushed down,"which the Legislature called "accountability." He added St. Anthony
19 representatives to the State Senate and House understood the problem and heard it"loud and
20 clear from us"; however, he stated they happened to be in the minority.
21
Councilmember Thuesen indicated he agreed with Mr. Cavanaugh regarding the need to be
diligent before the State Legislature. He indicated the City knew it was facing these hard
24 decisions after the Legislature finished its business the previous year. He added the difficulties
25 at the resident's level needed to be continually brought before the Legislature when they came
26 back in session.
27
28 A resident residing at 3201 Hilldale Avenue NE, noted he was a retiree who shared the voiced
29 concerns and agreed with Mr. Cavanaugh's comments. He indicated the biggest area from
30 which taxes could be reduced and money saved was the"Fire Department situation." He stated
31 the Parks Board was not happy to see the Fire Department next to the new park and homeowners
32 were concerned, as indicated by the"For Sale"signs. He asked if there was still time to
33 reconsider and find a more cost-effective solution.
34
35 Amelia Kramarczak, 3920 Macalaster(?), stated she had lived in the community for 23 years.
36 She noted she agreed with Mr. Cavanaugh and added she was a person suffering"real property
37 discrimination." She added her taxes were increased every year; however, no one ever asked her
38 what she as a"widow, pensioner and cripple"needed. She asked where her choice was, as her
39 taxes were increased and damage to her property went unnoticed. She asked why she had no
40 place where she could complain and noted City government had power she did not have. She
41 asked the City not to"rip up people who work hard."
42
43 John Kuharski, 2709 Paul Avenue, noted he had not heard an answer regarding fees being
charged to other communities for fire department services. He also asked if the liquor store's
large profit was included in the 2004 budget. His third question was if it was still possible to put
City Council Regular Meeting Minutes
December 8, 2003
Page 6
the Fire Department in a commercial area rather than in a residential area. He stated he wanted
2 to hear the answers before he left.
3
4 Councilmember Faust responded the answers to Mr. Kuharski questions were"yes,""yes"and
5 "maybe." He noted the issue of fees had been discussed previously and could be addressed
6 again; however, he warned in some cases more cost could be created.
7
8 Councilmember Faust explained the money did come back to the City from the liquor operation.
9 He noted the redevelopment of the Stonehouse would bring that piece of property onto the tax
10 rolls, as it would be commercial property. He indicated the old Stonehouse property would
11 generate somewhere between$60,000 and $100,000 a year in real estate taxes, depending on its
12 value. He noted only 47%to 48%of that amount came to the City, however. He stated the
13 City's liquor operation was currently diminished somewhat; however, he believed it would be
14 bigger and better when"up and running"this summer.
15
16 Councilmember Faust noted 18 months ago the City started the fire station process by creating a
17 task force that consisted of 19 people who met many times and held three or four public
18 meetings. He indicated a lease revenue bond was issued in May that saved $1 million in interest
19 because it was obtained at the bottom of the market. He added councilmembers were reelected
20 and he felt that was a strong endorsement of the City's plans. He noted it would not be cheap to
21 stop the process, as there would be no way to "go back to zero dollars." He added there would
0 be significant cost to step back and do the fire station another way.
24 Councilmember Faust indicated he had been an appraiser for 15 years and had never been able to
25 demonstrate a reduction in real estate value because of proximity to various buildings, as"every
26 person's pleasure is another person's pain." He noted one person might not like to live by a park
27 and another may seek out such a location. He added he overheard a father asking his son if he
28 would"like to live here because you could walk to school." He stated he understood people
29 were concerned because of the changes; however, the next generation probably would not know
30 the difference. He explained the task force had considered many sites and this site was
31 recommended, with no pressure from Council.
32
33 Councilmember Thuesen stated he wished to address the question of charging fees. He indicated
34 that item could be brought to the table but asked if the very same people who were on fixed
35 incomes and negatively impacted by tough economic times would be adversely affected by fees.
36 He noted it was probably true more service calls were going to elderly people on fixed incomes.
37
38 Councilmember Thuesen suggested that copies of Mr. Mornson's presentation be made available
39 to residents.
40
41 Mr. Cavanaugh suggested information go out to the City's elderly residents regarding an
42 available program that allowed them relief from their property taxes. He explained a lien was
43 placed on their property that would be settled when the property was sold. Councilmember
Faust added the program was a State program and only 1%of the real estate tax had to be paid.
He indicated the rest became a lien on the property, which was a 3% loan with the State. He
46 stated this information would be included in the next newsletter.
City Council Regular Meeting Minutes
December 8, 2003
• Page 7
1 Paul Gabler, 2921 Hilldale Avenue, stated he had lived in his current home since 1960. He
2 indicated he also had a 30+%increase in property taxes. He asked Mr. Mornson if the reduction
3 to be brought before Council at the current meeting was reflected in the budget presentation.
4 Mr. Mornson replied it was not.
5
6 Mr. Gabler asked for information regarding a reduction mentioned a few weeks ago. Mr.
7 Mornson responded the City's decision to decertify the Kenzie District last fall produced more
8 tax capacity for the City,which was reflected in the budget presentation. He added the current
9 resolution before Council represented $112,000 less than what was before Council in September.
10
11 Mr. Gabler asked for a copy of the budget presentation and indicated he also would like to see
12 the Fire Department located in a more commercial setting.
13
14 Rob LeFleur, 3312 Skycroft Drive, stated the fire station was a major capital expenditure and he
15 wondered if enough thought had gone into how the City should deliver this important service.
16 He asked if having one of the City's larger commercial enterprises impacting surrounding
17 neighborhoods and a park was a good idea.
18
19 Earl Shamp, 3509—315` Avenue NE, stated he greatly enjoyed living in St. Anthony Village and
20 indicated he wanted Council to seriously consider Mr. Cavanaugh's presentation.
21
Tom Nelson, 2840 Silver Lake Road, stated he wanted to thank Mayor Hodson and the members
of the Council for their service to the community, which made St. Anthony Village a better
24 place. Mr. Nelson stated his family had lived in St. Anthony Village for 29 years so they could
25 be closer to their jobs. He noted they were amazed at how quickly the streets and even alleys
26 were plowed when they first moved into the City. He indicated currently the alley was not
27 plowed unless there was a terrific amount of snow and then only after a rutted pathway had been
28 made by vehicles and trucks. He asked why City government could not deliver basic services
29 when the tax burden on residents was approximately double when compared to cities of
30 comparable size.
31
32 Mr. Nelson asked why his portion of city property taxes had increased 25%, as his wages did not
33 go up 25%. He noted the School Board had also increased his tax burden but added he at least
34 had the opportunity to vote on that issue. He indicated this tax increase lowered his family's
35 standard of living.
36
37 Mr. Nelson indicated he"loved"the location of the temporary fire station, as the fire trucks,
38 police cars and ambulances were no longer"roaring up Silver Lake Road." He stated his
39 family's standard of living had increased because of the Fire Department's move to its current
40 location.
41
42 Mr. Nelson stated a decision must be made to lower the burden of City government on the lives
43 of residents. He added City staff must be willing to make cost-effective decisions for
homeowners or changes in City personnel needed to be made. He noted State and County
governments had been able to manage their affairs within limitations.
46
City Council Regular Meeting Minutes
December 8, 2003
Page 8
Mr. Nelson cited the comment made that approximately$267,000 of State funding had been lost
2 and stated one of the reasons the State had cut the funds to City government was"there was
3 never enough money." He noted the decision last spring to buy a new fire truck and stated a
4 better choice would have been to refurbish the existing fire truck, which would have cost the
5 City less money while meeting the needs of the community. He stated the City of Minneapolis
6 had been refurbishing their fire trucks from the 1970s and 1980s and added private businesses
7 and private citizens must make those types of decisions. He asked that the hard-earned dollars of
8 residents not be wasted.
9
10 Rick Lundeen, 3904 Fordham Drive, stated he had lived in St. Anthony Village for 50 years,
11 paid taxes for 33 years and been a member of the Fire Department for almost 34 years. He
12 agreed he did not want his taxes to increase. He indicated he had heard all negatives and not any
13 plusses and suggested citizens come to the Fire Department and meet its personnel, as they were
14 also taxpayers. He suggested personnel response time to reach the fire station needed to be
15 considered and added an industrial park location would not work. He stated"handfuls"of
16 people approved of the new location and those attending the current meeting were the"handful'
17 who disapproved.
18
19 Mr. Lundeen stated the City of Minneapolis did not refurbish its fire trucks from the 1970s and
20 1980s and added St. Anthony Village also did not buy a new fire truck, as a demo fire truck had
21 been purchased to save the City money.
IPMr. Lundeen stated Fire Department personnel had saved the lives of people in the City. He
24 asked the residents to come to the fire station to "see what we are like before you condemn it."
25
26 Mr. Lundeen noted the taxes on his lake home had just increased by$240 and he was not able to
27 say anything about that. He stated he was glad he"could say something here." He warned that
28 residents did not appreciate their fire department until the life of a loved one was saved by its
29 personnel. He added the Fire Department was very considerate about using the sirens in
30 residential areas.
31
32 Mr. Lundeen asked Council to listen to all the residents who approved the new location and not
33 only those who were in attendance at the present meeting.
34
35 Another Village resident,who has lived on Armour Terrace for many years, stated he enjoyed St.
36 Anthony Village, as it was a nice, safe area in which to live. He indicated he read the article in
37 the Minneapolis Tribune that indicated St. Anthony Village was the most expensive place in
38 Ramsey/Hennepin counties with the highest tax increase. He noted he appreciated the road
39 improvements, driveway improvements, new fire station and new public works station; however,
40 he did not understand why the City was the most expensive area in the counties. He added the
41 areas surrounding the City did not have such a large tax burden. He cited the amount of taxes he
42 would need to pay, along with the percentages. He stated Council and City staff were doing a
43 good job but again questioned why St. Anthony Village was the most expensive area in which to
0 live.
City Council Regular Meeting Minutes
December 8, 2003
Page 9
He noted the increase in the value of homes in the City was approximately 12%to 14%. He
PP Y
2 stated residents were not getting back their investment. He asked Council to read the Tribune
3 article and analyze the benefits received by the City's residents.
4
5 Mayor Hodson closed the public hearing at 8:32 p.m.
6
7 Motion by Councilmember Faust, seconded by Councilmember Horst, to adopt Resolution 03-
8 102 setting the City of St. Anthony 2004 Tax Levy and Budget in compliance with the Truth-In-
9 Taxation Act.
10
11 Discussion:
12
13 Councilmember Horst stated he was as concerned as anyone and he had also seen the Tribune
14 article. He indicated it must be realized the City had two simultaneous infrastructure projects in
15 progress, which had been "put off"40 to 50 years. He added the two projects had unfortunately
16 both surfaced because the timing was right and the City was realizing a higher tax burden,which
17 would probably never happen again. He stated the argument would be justifiable if the City was
18 doing this every year.
19
20 Councilmember Horst noted the City would have the fire trucks it needed for the next ten years
21 and would have a fire station for another 40 to 50 years, along with a public works facility that
was finally safe. He added a tremendous amount had been accomplished during the last four
years, as the City had moved ahead further than in the last 30 years. He stated he hoped future
24 discussions would relate to the location of the fire station and not the need for a fire department,
25 as the Fire Department was an integral part of the community. He added further discussions
26 would probably be held regarding the location.
27
28 Councilmember Faust stated he felt Council and City staff were very up front with everyone
29 regarding the cost of the projects. He added he believed an opportunity presented itself that was
30 over and above what would be seen again concerning the public facilities. He indicated, in his
31 opinion, this was the right thing to do.
32
33 Councilmember Faust stated the infrastructure did not always wear out"on our timeline" and it
34 was difficult to program these improvements in a built-up community. He noted residents were
35 being heard and diligent work was being done on redevelopment. He cited Stonehouse, which
36 would become a taxable property, and the addition at Autumn Woods, which would add to the
37 tax base. He added it was unfortunate cities could not control the Legislature.
38
39 Councilmember Faust stated it was common to complain about high taxes but also complain
40 about services. He noted the City was trying to find"that happy medium,"as complaints were
41 taken seriously and different options were considered at goal-setting sessions. He added care
42 needed to be taken regarding what was implemented, as there was a reaction for every action.
43 He stated the City probably needed to do a better job of communicating with people.
0 -
City Council Regular Meeting Minutes
December 8, 2003
Page 10
1 Mayor Hodson thanked all those who had participated and noted this was the most participation
2 he had seen in the past four years. He indicated he was glad to see"you are concerned enough to
3 voice your concerns,"as this was an opportunity to shape the community.
4
5 Mayor Hodson stated he was proud to be a part of this growth in the community and noted the
6 present Council was also responsible for bringing a larger tax base to the City. He indicated all
7 residents had paid because attention was not given to the declining tax base; however,
8 redevelopment projects such as Apache Plaza, the Stonehouse property, the new liquor store,
9 restaurant,bar and retail space would increase the City's tax base. He added Culvers was
10 already contributing and Autumn Woods would be adding additional units. He indicated every
11 possible square inch of the City needed to be developed to increase the tax base.
12
13 Mayor Hodson explained the site options for the fire station had been thoroughly considered. He
14 noted the chosen site was not his choice; however, the advice of the task force and voice of the
15 majority had been taken and taxpayers and residents must honor the decision.
16
17 Mayor Hodson indicated St. Anthony Village was an"incredible,beautiful city"with great
18 volunteers, residents and staff. He stated the goal was to obtain as much strength as possible by
19 maximizing the amount of revenue through redevelopment of other underutilized areas.
20
21 Mayor Hodson stated he hoped those who disagreed with the outcome would not stop coming to
voice their opinions. He added he agreed the City's services needed to be reviewed and
questioned if the review should be made more public by the use of a task force. He also
24 suggested it might be time for an additional survey to discover the"things you want and do not
25 want." He asked that residents keep communicating through e-mail, telephone or direct
26 conversation, as that was the only way Council and staff could hear the interests and concerns of
27 the City's citizens.
28
29 Motion carried unanimously.
30
31 Mayor Hodson called a recess at 8:42 p.m.
32
33 Mayor Hodson called the meeting back in session at 8:49 p.m.
34
35 VI. REPORTS FROM COMMISSIONS AND STAFF.
36 A. Status report on the Fire Station by Gary Benson Kraus-Anderson. and Jeff Oertel.
37 Oertel Architects.
38 Gary Benson, Kraus-Anderson, stated he was present to give an update on the fire station. He
39 explained the results of the bids were brought before Council a couple of months ago; however,
40 the bids exceeded budget and redesign and rebid were necessary. He indicated many meetings
41 with staff, architects and engineers had been conducted and the redesign of the project was on
42 budget, according to estimates. He noted the redesign featured a one-story facility that was
43 3,000 square feet smaller than the previous design. He added it was expected deduct alternates
would be included in the rebid. He stated the goal was to go out with plans for bidding in late
January of 2004 and receive bids back in late February of 2004,with a completion date still
46 planned for November of 2004.
City Council Regular Meeting Minutes
December 8, 2003
• Page 11
1 Jeff Oertel, Oertel Architects, stated the following had been performed by the project team since
2 October 8, 2003:
3 1. Several strategy sessions to determine valued engineering items and cost savings.
4 2. Several planning meetings with the Fire Department's design committee.
5 3. Several meetings with the entire Fire Department to discuss design options.
6 4. Preparation of updated plans and options.
7 5. Preparation of a final design.
8 6. Preparation of a cost estimate.
9
10 Mr. Oertel explained the current proposed plan was very similar to the previous plan, except the
11 building was now all one level. He noted the entire central apparatus bay and work/technical
12 space to the west of the bays remained unchanged and the exterior appearance was consistent
13 with the design approved by the Planning Commission and Council. He indicated the major
14 changes were the elimination of the second floor and the department's sleeping and activity
15 areas were moved to the first floor. He added the total area was reduced from approximately
16 14,000 square feet to approximately 11,000 square feet. He noted almost half of the eliminated
17 area was for space that was not really functional/usable by the department(two levels of
18 stairways located at each end of the building, along with an elevator and equipment room). He
19 stated there was one less dorm room for a total of three dorm rooms, the assistant chiefs office
20 was eliminated, the restrooms were downsized and there was less storage.
21
Mr. Oertel indicated Kraus-Anderson prepared a cost estimate for the new design and the
modifications to the building, along with additional changes to the mechanical and electrical
24 system,were projected to meet the budget. He added this included hose tower and, without the
25 tower, the cost of the building would be below the budget,based on estimates.
26
27 Mr. Oertel presented prints of the new design from various viewpoints.
28
29 Councilmember Horst asked if the hose tower was part of the plan or a deduct. Mr. Oertel
30 responded he would like to put the hose tower in as an alternate but currently felt the budget was
31 met with the hose tower included.
32
33 Councilmember Horst asked if everything cited on the plan was included. Mr. Oertel responded
34 it was. He added, in addition to eliminating the second floor, the mechanical and electrical
35 systems were changed. He noted the hose tower was considered vital by the firefighters.
36
37 Councilmember Thuesen asked if a decision had been made to go with a unisex bathroom. Mr.
38 Oertel responded both men's and women's bathrooms were needed from a code standpoint;
39 however, there was a unisex shower and toilet room that staff would have to share.
40
41 Councilmember Thuesen asked if the building would be able to accommodate any needs for
42 expansion, as thought should be given to functional service in the future as well as the present.
43 Mr. Oertel responded there was some ability to expand to the north. He added it would add quite
• a bit of cost if the City decided to expand upward.
City Council Regular Meeting Minutes
December 8, 2003
Page 12
Councilmember Faust stated taking out radiant infloor heating and installing overhead radiant
2 had been discussed. He indicated he understood there was an energy savings with infloor
3 heating; however, the infloor cost was initially higher but had a payback of approximately two to
4 three years. Mr. Oertel responded he was not certain that was true, as he had worked on many
5 buildings with infloor radiant and overhead radiant. He cited examples that suggested the
6 payback was not that significant. He explained he thought the differences had more to do with
7 preference and comfort. He noted a mechanic working in a bay would prefer the infloor and the
8 heat could be lowered because it was on the floor. He added overhead radiant was better for
9 equipment and apparatus, however. He indicated he did not believe the savings would be
10 significant because people were not working on the floor.
11
12 Councilmember Faust asked if the boilers used for infloor versus ceiling would be different or if
13 the same one could be used, such as a modulating condensing boiler. Mr. Oertel responded
14 boilers could be very efficient; however, the new building did not require boilers. He noted
15 quite a bit of money was saved by using a direct-fired radiant overhead and then using package
16 units in the living and working areas.
17
18 VII. GENERAL POLICY BUSINESS OF THE COUNCIL.
19 A. Resolution 03-103, re: Call for redemption of outstanding General Obligation Tax
20 Increment Bonds, Series 1995B.
21 City Manager Morrison noted the City of St. Anthony issued $2.65 million in bonds to fund a
portion of the Community Center(City Hall)project. He explained the debt service for these
bonds was paid from Kenzie tax increment revenue and the increment from the bonds had
24 exceeded debt service requirements; therefore, the City had sufficient funds to pay off the
25 outstanding bonds. He stated the call date on these bonds was February 2004 and, in order to
26 call the bonds on that date, it was necessary to issue a call notice 30 days prior to February 1,
27 2004. He indicated Resolution 03-103 was prepared to authorize the bond call and, once the
28 resolution was approved, Ehlers and Associates would prepare and deliver the call notice and
29 coordinate the final payout.
30
31 Mr. Morrison stated the City had invested the funds required to redeem the outstanding bonds
32 and these investments would be converted to cash prior to the closing date. He indicated the
33 amount of funds required at closing was estimated at $1.28 million plus accrued interest and
34 Ehlers would coordinate the transfer of funds required to complete this call with Finance
35 Director Larson.
36
37 Mr. Morrison noted the City initiated action to decertify the Kenzie tax increment district earlier
38 this year, which would be effective for the 2004 tax year. He added it was expected the City's
39 tax capacity would increase by about 6%and this increased base would provide a significant
40 benefit for taxpayers.
41
42 Motion by Councilmember Faust, seconded by Councilmember Sparks, to adopt Resolution 03-
43 103 calling for redemption of outstanding General Obligation Tax Increment Bonds, Series
0 1995B,dated December 1, 1995.
46 Motion carried unanimously.
City Council Regular Meeting Minutes
December 8, 2003
• Page 13
1
2 B. Resolution 03-101. re: Union and non-union salaries and benefit packages for 2004 and
3 2005.
4 City Manager Morrison stated he had come to agreements with two bargaining units for 2004
5 and 2005,which represented the 16 full-time employees in the fire and public works bargaining
6 units. He noted he had not had an opportunity to negotiate with the police due to scheduling
7 difficulties; however, that contract would be negotiated in 2004.
8 Mr. Morrison explained a summary of the agreements was as follows:
9 1. Salary increase of 1.5%in 2004; salary increase of 2.0% in 2005.
10 2. Health insurance increase for family was $30 in both 2004 and 2005.
11 3. Cap on personal leave for new hires after January 1, 2004,was 1,200 hours.
12 4. Comp time would be paid prior to December 31, 2003, for fire union and all non-union
13 employees.
14 5. No comp time would be allowed, except as specified in the public works contract on a
15 limited basis or if the time was used in the year it was earned. He noted a$100,000
16 liability due for payout had been found through an audit done by the City. He added the
17 liability was currently down to $24,000, which would be paid at the end of the year.
18
19 Mr. Mornson indicated the total number of non-union employees was 22 and the resolution
20 provided the same salary and benefit package to all full-time non-union employees for 2004 and
21 2005. He added the total number of employees covered by Resolution 03-101 was 38, which he
40 recommended Council approve.
24 Motion by Councilmember Horst, seconded by Councilmember Thuesen, to adopt Resolution
25 03-101 approving full-time public works and fire union employees' and non-union City
26 employees' salary and benefit packages for 2004 and 2005.
27
28 Discussion:
29
30 Councilmember Faust thanked the City's public employees, as they understood the City was
31 experiencing tough economic times and were willing to shoulder part of the burden. He
32 congratulated the City Manager and Department Heads for what had been done with the
33 unfunded liability of comp time.
34
35 Mayor Hodson stated he echoed what had been said by Councilmember Faust and felt the
36 teamwork should be applauded. He noted it was easy to criticize staff; however, this agreement
37 showed their commitment to the community.
38
39 Motion carried unanimously.
40
41 C. Ordinance 2003-017,re: Amend personal leave.
42 City Manager Morrison noted this ordinance would mean full-time employees, hired after
43 January 1, 2004, would have a maximum cap on their personal leave of 1,200 hours. He added
there currently was no cap on personal leave hours and this change would be consistent with
changes in the union contracts.
46
City Council Regular Meeting Minutes
December 8, 2003
• Page 14
1 Mr. Mornson recommended Council waive the second and third readings of Ordinance 2003-017
2 and adopt.
3
4 Motion by Councilmember Sparks, seconded by Councilmember Faust, to adopt Ordinance
5 2003-017 relating to personal leave, amending Section 300.09, subd. 2 of the 1993 St. Anthony
6 Code.
7
8 Friendly amendment by Councilmember Faust to waive the second and third readings and adopt
9 Ordinance 2003-017 at the current meeting.
10
11 Motion carried unanimously.
12
13 D. Resolution 03-104, re: Call a Special Council meeting.
14 City Manager Mornson noted Council called a Special City Council meeting for Tuesday,
15 December 16, 2003,beginning at 3:30 p.m. in the Council Chambers, for the purpose of
16 conducting interviews for the upcoming vacancies on the Planning and Parks Commissions. He
17 recommended Council adopt Resolution 03-104 calling the Special City Council meeting.
18
19 Motion by Councilmember Thuesen, seconded by Councilmember Faust, to adopt Resolution
20 03-104 calling a Special City Council meeting for Tuesday, December 16, 2003,beginning at
21 3:30 p.m. in the Council Chambers.
0 Motion carried unanimously.
24
25 E. Resolution 03-105, re: Change regular Council meeting_date.
26 City Manager Mornson noted Council desired to conduct a swearing-in ceremony for the Mayor
27 and three Councilmembers who were elected by St. Anthony residents in the November 4, 2003,
28 local election; therefore, the first Council meeting in 2004 would be changed to Tuesday,
29 January 6, 2004, beginning at 7:00 p.m. in the Council Chambers. It was added the regularly
30 scheduled Council meeting of January 13, 2004, was canceled.
31
32 Mr. Mornson noted the other reasons for the date change were a December follow-up Council
33 meeting to the December Planning Commission meeting had not been planned and, in addition,
34 bid openings were due in December for the 2004 street project and staff wished to complete the
35 review earlier.
36
37 Motion by Councilmember Faust, seconded by Councilmember Sparks, to adopt Resolution 03-
38 105 to change the first regularly scheduled City Council meeting of 2004 to Tuesday,January 6,
39 2004, beginning at 7:00 p.m. in the Council Chambers.
40
41 Motion carried unanimously.
42
43 VIII. REPORTS FROM CITY MANAGER AND COUNCILMEMBERS.
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City Manager Mornson reported the following:
City Council Regular Meeting Minutes
December 8, 2003
Page 15
■ A list of the public meetings for 2004 would be posted on the City's website. He
2 explained the list included the dates of Council and Commission meetings, along with the
3 dates scheduled for joint meetings of the City Council and School Board.
4 ■ The Autumn Woods project was scheduled to break ground this winter; however, the
5 owner indicated the groundbreaking would be delayed until spring because of the
6 weather, late start and somewhat soft multi-family market. He noted this was not a sign
7 the development would not be completed.
8 ■ "A lot of dirt"was being moved around by Amcon at the old Stonehouse site. He
9 indicated the developer was anticipating the possibility of paving. He added an early to
10 late spring opening for the liquor store was still planned.
11 ■ The closing on the Apache project would take place within the next week. He stated staff
12 was meeting"feverishly"with the development team and meetings would intensify, as
13 the goal was to get plats recorded before the end of the year.
14 ■ The 39`h Avenue project feasibility study was in its beginning stages.
15 ■ Mayor Hodson and he went to the Met Council the previous week, as"this project does
16 have some regional significance." He indicated the visit was to promote that significance
17 to obtain more funding.
18
19 Councilmember Horst reported he had attended the Community Services Board meeting the
20 previous Thursday. He explained the main topic of discussion was the budget for the 2004-2005
21 school year, as the grandfather levy was no longer available. He noted the Community Services
budgeting process would need to"tighten its belt"by approximately $60,000, particularly as it
00 related to senior and adult education programs and Parks and Recreation programs. He added
24 this was a topic Council would discuss at its goal setting session in January.
25
26 Councilmember Horst indicated the Community Services Board was seeking a couple of Board
27 members. He stated if a member of the public was interesting in being an at-large member of the
28 Board he/she should contact Kathy Knapp at Community Services.
29
30 Councilmember Horst thanked those who supported him for reelection.
31
32 Councilmember Horst thanked Councilmember Sparks for the hard work and dedication she
33 brought to her job as a Councilmember.
34
35 Councilmember Horst wished everyone a Merry Christmas and Happy New Year.
36
37 Councilmember Sparks stated she had no report but wished to thank all for the gift and good
38 wishes.
39
40 Councilmember Thuesen suggested copies of the 2004 public meetings list be made available to
41 residents.
42
43 Councilmember Thuesen stated he wished to commend Councilmember Sparks for her hard
0 work. He indicated no one could question her devotion and passion for the community.
City Council Regular Meeting Minutes
December 8, 2003
Page 16
Councilmember Faust reported he and Mr. Mornson had a meeting with the Hennepin County
eP g
2 assessor and his staff the previous Wednesday regarding growth in property values and where
3 the trends were. He noted property values were increasing in St. Anthony Village at a very fast
4 rate and the trend would continue. He added property values did not cause taxes; however,
5 spending did cause taxes and Council would watch the spending.
6
7 Councilmember Faust explained a Blue Ribbon Panel had been started the previous year,which
8 had to do with telemedicine education, employment and training. He stated on December 5, the
9 previous Friday, Mayor Hodson, a couple of staff members and he had the opportunity to meet
10 with the"heart institute guru,"Dr. Goldberg, who showed them how telemedicine could be set
11 up and utilized. He noted, ironically, there was a recent newspaper article relating to rural
12 Minnesota and telemedicine. He indicated telemedicine did not have to be exclusively rural but
13 could be a way to help elderly people stay in their homes and mitigate some of the costs of
14 entering into a nursing home. He stated the Northwest Quadrant would be the first area with
15 access,which would hopefully move on from there. He added telemedicine was currently in an
16 infantile stage; however,he felt it was doable with the will of residents and developers.
17
18 Councilmember Faust stated he also wished to thank Councilmember Sparks. He asked her to
19 keep active with Village Fest if possible, as she had done an outstanding job. He added she
20 would always have Council's ear.
21
Mayor Hodson reported he and Mr. Mornson attended a meeting with the Met Council on
December 1,where they thanked the Met Council for allocating the grant for asbestos abatement
24 and the Local Community Grant to "kick off'the Apache/Northwest Quadrant redevelopment.
25 He noted the Met Council had identified those who would receive future funding and it did not
26 appear St. Anthony Village was one of those chosen. He added Met Council staff,however,
27 brought them aside and indicated it was possible they had found an additional funding source for
28 the City.
29
30 Mayor Hodson stated Councilmember Faust and Mr. Mornson had spent a considerable amount
31 of time keeping relationships going and noted the amount of grants awarded to the City in the
32 last six/seven years had been incredible for a community the size of St. Anthony Village. He
33 added Council and staff were working diligently to look for revenue sources, despite the
34 increases being seen in taxes.
35
36 Mayor Hodson indicated he was encouraged about a federal source of funds that might be
37 available for the 39`h Avenue/Apache redevelopment area. He added staff and Council were
38 continuing to work toward bringing additional funds into the community.
39
40 Councilmember Faust stated the grant total of$7,771,054 equated to $971 per resident, which
41 was a"pretty awesome"amount for a City of 8,000 people.
42
43 Mayor Hodson thanked Councilmember Sparks for her work in the community. He noted a lot
of what she did went unnoticed, as she was not only on the City Council but also involved in
many other activities. He stated Council would miss working with Councilmember Sparks and
46 thanked the residents who encouraged her to continue her work with the community.
City Council Regular Meeting Minutes
December 8,2003
Page 17
1 IX. INFORMATION AND ANNOUNCEMENTS.
2 None.
3
4 X. MISCELLANEOUS INFORMATIONAL DOCUMENTS.
5 None.
6
7 XI. ADJOURNMENT.
8 Mayor Hodson adjourned the meeting at 9:25 p.m.
9
10
11
12 Respectfully submitted,
13
14
15 Marjorie R. Jenkins
16 TimeSaver Off Site Secretarial, Inc.
17
18
19 ��-21 )il
Mayor
20 ATTEST:
21 City Clerk
•
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