HomeMy WebLinkAboutCC MINUTES 05082001 Meeting Sheet
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Box: 36
Folder: CC MINUTES AND AGENDAS 2001
Document: CC MINUTES 05082001
1 CITY OF ST. ANTHONY
2 CITY COUNCIL STUDY SESSION
3 May 8, 2001
•4 Council Chambers
5 I. CALL TO ORDER.
6 Mayor Cavanaugh called the meeting to order at 7:02 p.m.
7 II. PLEDGE OF ALLEGIANCE.
8 Mayor Cavanaugh invited the Council and audience to join in the Pledge of Allegiance.
9 III. ROLL CALL.
10 Councilmembers present: Mayor Cavanaugh; Councilmembers Sparks,Thuesen, Horst and
11 Hodson.
12 Councilmembers absent: None.
13 Also present: City Manager Michael Mornson; City Attorney Jerry Gilligan.
14 IV. COMMUNITY FORUM.
15 Tom Hauben, 2705 Paul Avenue, stated he was there to discuss the City of St. Anthony's sewer
16 service, or lack thereof. He stated that two years ago his street had the alleys and sewers
17 replaced, yet the storms on April 22nd and April 23'd caused sewer backups in his neighborhood.
18 He wanted to know what actually caused the backups in his neighborhood. He indicated that
19 City workers were out early on those mornings, and if it was a sump-pump problem, he felt the
20 City policies that are in effect are unacceptable.
•1 Mr. Hauben stated he did not understand why other cities were able to eliminate sewer troubles,
22 and said it was his opinion that a freeze be put on all other building projects until this one is
23 fixed. Mr. Hauben indicated that his insurance company would probably cancel him because he
24 has had two claims within the last three years, and said he would be filing a claim with the City
25 of St. Anthony tomorrow. Mr. Hauben concluded by saying that he and his neighbors were
26 extremely unhappy about the situation and they felt they deserved the same services that
27 everybody else has in the city.
28 Todd Hubmer responded that they are aware of these problems, and have entered into an
29 agreement with the Metropolitan Council to address this issue. He stated they are currently
30 looking at the area South of Paul Avenue to the city of Minneapolis to see if they have any
31 deficiencies, or repair work that needs to be done. Mr. Hubmer indicated that within the next six
32 weeks, they should have some indication of what type of work needs to be done to alleviate the
33 problem.
34 Mayor Cavanaugh asked if they were going to put cameras along the lights of the area that they
35 will be studying. Mr. Hubmer responded that they would be putting lights there, and that it was a
36 difficult task because it is the trunk line into the City.
37 Councilmember Thuesen asked if there were other problem areas. Mr. Hubmer responded that
38 there was another problem area up at 33`d and Edward, and also some backups along Roosevelt
and the Minneapolis border. Mr. Hubmer added that sanitary sewer systems were a problem in
several areas in the Twin Cities.
City Council Study Session Meeting Minutes
May 8, 2001
Page 2
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1 Councilmember Hodson asked what causes these backups, and how fast the rate of waterfall has
2 to be to cause these problems. Mr. Hubmer responded that the soil was already saturated from
3 the snow and frost which is what caused the sanitary system to receive such an inflow of clear-
4 water that it backed up in some of the lower places in town.
5 Mayor Cavanaugh indicated that their agreement with the Metropolitan Council was insurance
6 that they were dedicated to fixing the problem. He apologized to Mr. Hauben for the
7 inconveniences, and said WSB would stay on this problem until they had an answer.
8 Mr. Hubmer stated that they went out for bids today, and that bids should be in and completed by
9 the second week of June. He indicated that he could have a report to bring back to the Council
10 the second week of June.
11 Mayor Cavanaugh thanked Mr. Hauben for coming.
12 VI. ACTION ITEMS.
13 A. Proclaim "Warren Rolek Day" on May 17, 2001.
14 Mayor Cavanaugh reviewed the proclamation and the party that would be held to honor Warren
15 Rolek on May 17`h.
0 Councilmember Sparks moved that "Warren Rolek Day" be recognized on May 17th
17 Motion carried unanimously.
18 B. Consent A eg nda.
19 Motion by Thuesen, second by Hodson, to approve the Consent Agenda. Said Consent Agenda
20 consisted of:
21 1. Claims.
22 2. Memorandum of Understanding with ISD#282 for Conduct of 2001 Local Elections.
23 Motion carried unanimously.
24 C. Resolution 01-059, Award Bid For Landscaping Of Storm Water Pond.
25 Todd Hubmer reviewed the bids that came in on this project on April 26`h. He indicated that one
26 of the reasons that they only had two bidders was because they had to be pre-qualified. Mr.
27 Hubmer stated that the reason for the pre-qualification was due to the sensitive nature of the area.
28 He recommended that Second Nature Lawn And Landscapes be awarded the bid in the amount of
29 $268,715.60.
30 Mayor Cavanaugh asked if the residents had seen this landscaping plan. Mr. Hubmer responded
31 that they had seen the plans and they have made adjustments to the plans to respond to some of
the concerns of the residents.
33 Mayor Cavanaugh asked if the area is owned by the property owners once it is completed. Mr.
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May 8, 2001
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1 Hubmer responded that it would be owned by the property owners.
2 Mayor Cavanaugh asked if there were any additional taxes on this land because of the
3 improvements. City Attorney Jerry Gilligan responded that there would not be any additional
a taxes.
5 Motion by Councilmember Thuesen to adopt Resolution 01-059, re: Award bid for landscaping
6 of storm water pond.
7 Motion carried unanimously.
8 D. Resolution 01-060, Award Bid For Central Park Redevelopment.
9 City Manager Morrison introduced Bob Kost, of BRW, after expressing his concern over the high
10 cost of this project. Mr. Kost reviewed the bid process with the Council. He stated that the bids
11 were received on May 1, 2001, and that there were twenty-six interested parties at the close of
12 the bidding. He stated that only three bids were received, and the lowest bid was nearly 11%
13 over the engineer's estimate. He also mentioned that all three contractors made significant errors
14 in their bids.
15 Mr. Kost stated that the bid tabulation was complicated. He indicated that there was a base bid,
and eleven items that were listed as additions, or deductions, as separate items from the base bid.
7 Mr. Kost stated that the reason for the option to add, or deduct these items was to make the
18 bidding of the project as flexible as possible with regard to the investigation of the contaminated
19 soil, and all areas affected by it.
20 Mr. Kost indicated that some of the interested parties expressed their concern with the
21 contaminated soil.
22 Mr. Kost stated that, after much deliberation with the Parks Commission, he recommended that
23 the Council reject the bids, review the plans, and prepare for a re-bid.
24 Councilmember Thuesen asked if they were to reject the bids, would some of the contractors
25 who did not submit bids have fewer projects then, and be willing to submit this next time. Mr.
26 Kost indicated that was their hope.
27 Councilmember Thuesen asked if, now that more is known about the contaminated soil, there is a
28 greater possibility that more would be interested. Mr. Kost indicated that he believed there
29 would be less fear surrounding the project.
30 Councilmember Thuesen asked for some specific dates on the project. Mr. Kost indicated that
31 just after Labor Day would be the best time to begin the project.
Councilmember Hodson asked why they would not begin sooner. Mr. Kost stated that summer
3 jobs would be winding down, and, hopefully, more of the contractors would be looking for more
34 jobs.
City Council Study Session Meeting Minutes
May 8, 2001
Page 4
1 Councilmember Hodson asked about extending the bid days. Mr. Kost stated he thought that
2 was a good suggestion.
3 Mayor Cavanaugh asked about the risk that is left to the bidder regarding the contaminated soil.
4 Mr. Kost explained that the circumstances regarding the risk to the bidders varies from digging
5 into something that would postpone the project, to being required to request a large change order
6 because a special amount of construction needed to be done. He continued that a number of tests
7 have given them a good understanding of the location and extent of the contaminated soil, which
8 has reduced the risks to the bidders significantly.
9 Chris Bradshaw, of BRW, stated that when they presented their plan to the Minnesota Pollution
10 Control Agency, they asked for several additional borings and test trenches. He feels they have
11 peppered the sight with borings, and have delineated two separate, former dumping areas. He
12 stated that looking at where it all lays out in cross-section, the railroad ties need to be pulled out,
13 as well as the contaminated soil associated with the railroad ties. Mr. Bradshaw added that the
14 health and safety standards of the sight are below risk standards, which is an issue for the
15 workers, as well.
16 Councilmember Thuesen asked if this information was available at the time of bidding. Mr.
17 Bradshaw responded that it was not available at that time.
08 Mr. Kost stated that they would restructure the bidding process next time around, and eliminate
19 the options.
20 Mayor Cavanaugh asked Chair Jindra and Maury Anderson their individual opinions on the
21 project bids. Parks Commission Chair Jindra stated that she wants to see the project move
22 forward, but would like to reject the bids at this time. Mr. Anderson stated that the Parks
23 Commission discussed the two options extensively last week, and he believed that the possibility
24 to save money outweighs the risk of the bids possibly coming in higher. His final
25 recommendation was in agreement with Mr. Kost to re-bid the project.
26 Mayor Cavanaugh asked what costs exist for the city to send this project back out for re-bid.
27 Mr. Kost stated they would need to redo the bid evaluation, revisit the plans with the Parks
28 Commission and Mr. Anderson. He estimated the total cost to be $10,000, and said he could
29 have the information pulled together in the next couple of weeks.
30 Mr. Kost also indicated that the buildings that were planned to be in Central Park were also an
31 issue for the contractors. He stated that they were seen as unknowns, which meant that they were
32 charging more for them. Mr. Kost suggested putting the bids for Central Park, and the buildings
33 of Central Park out for bid together.
34 Councilmember Horst asked the Council if they wanted to spend this much money. He stated the
10project has increased from a park improvement to a new park. Mr. Kost stated that the Parks
36 Commission has discussed that as a very real issue, and that the expectations of Central Park
37 need to be re-determined.
City Council Study Session Meeting Minutes
May 8, 2001
Page 5
1 Mayor Cavanaugh stated that they cannot afford$2,200,000, and that they should discuss
2 rejecting the bids. Councilmember Horst indicated that he did not want to seem like he was not
3 in favor of the project at all, but was concerned about the extreme increase in cost.
4 Councilmember Thuesen stated that the Council should determine a dollar amount that they will
5 put into this project, as well as give the Parks Commission a firm date.
6 Mr. Kost stated that he agreed with Councilmember Thuesen that a specific budget needed to be
7 determined now that they have all of the necessary information.
8 Councilmember Horst indicated that he would be comfortable with the initial budget for the
9 project of$1,600,000. He added that, if obstacles came along, that a changes order be submitted
10 and discussed, as they have done with passed projects.
11 Councilmember Thuesen indicated that he would be comfortable with Roger Larson's
12 recommendation of$2,300,000, which included the buildings. Councilmember Horst stated that
13 if they go with that budget, they are in the position to spend every penny, which he was not
14 comfortable with.
15 Councilmember Hodson stated that it has been indicated that they have the funds to do a lot of
the discussed plans, and that they discuss those things. He stated that they have not done
*17 anything to Central Park for forty-five years, and that it is time to make it a place for multi-
18 generational use.
19 Councilmember Horst stated that, while the park may not be functioning to their liking, it is
20 functioning. He asked why they do not put some more money into the infrastructure of the city,
21 such as the Public Works Fire Station.
22 Councilmember Sparks interjected that the park improvements are critical. She referred to some
23 research that she had done which indicated that city parks increase real-estate values
24 substantially, and ensure a safer living environment through lighting. Councilmember Sparks
25 stated that the improvements to Central Park are not a luxury, and are as important as all of the
26 other projects in the city.
27 Councilmember Horst stated that he agreed with the information that Councilmember Sparks
28 reviewed, but that things needed to be prioritized. Councilmember Sparks stated that all of the
29 projects mentioned tonight were important, including the Central Park project.
30 Parks Commission Chair Jindra stated that she attended a City Council meeting back in April of
31 1997 that was filled with residents, and the decision was made to improve the parks in the area.
32 She asked the Council when that promise would be fulfilled.
33
0 Councilmember Horst stated that he was not opposed to the Central Park Project, but that he did
35 not support pouring all of the possible funds into the project.
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May 8, 2001
Page 6
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1 Councilmember Sparks stated that she trusted in their Finance Director Roger Larson that they
2 could spend$2,300,000 to do the Central Park Project. Councilmember Horst stated it was the
3 first time that they were paying attention to what Mr. Larson had to say. Mayor Cavanaugh
4 indicated that was untrue, and that it was the first time they had asked Mr. Larson for a budget
5 for this project.
6 Mayor Cavanaugh recommended that they follow the guidance of Mr. Larson, and make the
7 budget$2,300,000 for the Central Park Project.
8 The City Council commended the Parks Commission for their work thus far.
9 Motion by Mayor Cavanaugh, second by Councilmember Thuesen, that the Central Park Project
10 be capped at $2,300,000, which includes buildings.
11 Motion carried 4-1, Councilmember Horst opposed.
12 E. Resolution 01-061, Approve Building Designs And Cost Estimates For Cites
13 Building By SEH.
14 Ms. Olivier asked the Council what funds would be there for the buildings. Mayor Cavanaugh
15 responded that it was unknown at this point.
06 Ms. Olivier asked if the Silver Point Project was included in the $2,300,000. Mayor Cavanaugh
17 stated that it was not.
18 Ms. Olivier indicated that they were ready to begin construction documents at this point, and that
19 they wanted to draw up the plans for the buildings for Central Park and Silver Point Park in order
20 to keep costs down.
21 Councilmember Horst asked Mike Mornson to review the funding status of the two projects. It
22 was determined that the DNR was funding the Silver Point Park project.
23 Parks Commission Chair Jindra informed the Council that the original plans for Central Park
24 included renovating a forty-five year old building by the wading pool. The Parks Commission
25 has decided to put in a new building instead with a warming house and a meeting room.
26 Councilmember Sparks added that she has seen the building that it is being modeled after and
27 shared some of the amenities with the Council. Councilmember Horst stated that all was well, if
28 they could afford it.
29 Resolution tabled.
30
31 F. Review and approve 2000 City Audit as presented by Stu Bonniwell, City Auditor.
0Stu Bonniwell began reviewing pages 27-33, which were his comments on the review of the City
33 of St. Anthony Financial Report ending December 31,2000, and stated that the report was
34 intended solely for the information and use of the City Council, management and others within
City Council Study Session Meeting Minutes
May 8, 2001
Page 7
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1 the organization. He stated that the financial condition of the City continues to remain strong.
2 He noted that the City's financial condition has not changed significantly over the past several
3 years.
4 Mr. Bonniwell continued by reviewing a summary of significant activities of the different fund
5 categories:
6 The General Fund at December 31,2000 was $976,523, which represented an increase of
7 12.15% from the prior year's fund balance. Revenues and transfers of$3,472,701 were
8 less than budgeted estimates by approximately $55,000 due to a budget transfer of
9 $250,000 not deemed necessary by City management. The fund balance of the General
10 Reserve Fund of$250,000 was designated for revenue stabilization purposes in the
11 General Fund, or for capital acquisitions in 2001.
12 Many of the Debt Service Funds maintained relate to the City's street improvement
13 program. Existing fund balances, combined with annual tax and assessment levy
14 amounts, was sufficient to satisfy 2001 debt service requirements.
15
16 The Capital Project Funds for the year 2000 were largely used for improvement costs.
17 Improvement costs incurred by the City amounted to $3,837,973. Proceeds from two
18 bond issues, in addition to state aids, were used to fund those projects.
WO Proprietary Funds. The financial condition of each enterprise fund improved based on
21 results of operations for 2000. The Liquor Fund had a net income of$217,822 for the
22 year. After budgeted transfers of$140,000, the increase in retained earnings was
23 $77,822. The Utility Fund had a net income from operations of$514,366 for the year.
24 Retained earnings of the Utility Fund were approximately $7,000,000, which are reserved
25 for water filtration and purification improvements. The Deficit of the Employee Benefit
26 Fund is $196,615 at the end of the year. The liability for compensated absences increased
27 as a result of the conversion from sick days to personal leave days for computation of the
28 liability amount.
29
30 Mr. Bonniwell reviewed the Government Accounting Standards Board (GASB) Statement
31 Number 34 with the Council. He indicated it was the most significant change in the
32 governmental financial reporting model in over twenty years. He said this statement establishes
33 financial reporting standards for state and local governments.
34 Mr. Bonniwell reviewed some of the major concepts of the Statement:
35 1. A section titled "management's discussion and analysis' must be added to the
36 financial report and statements.
37 2. Government-wide financial statements will replace the current general purpose
38 financial statements as they are referred to.
3. Individual fund financial statements will also be included in the financial report.
40 4. Required supplementary information must include:
City Council Study Session Meeting Minutes
May 8, 2001
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1 Budgetary comparisons in the financial statements and must include both the
2 original budgets as well as amended budgets, a reconciliation between the fund-
i basis and the government-wide financial statements, and other types of financial
4 data required by previous GASB pronouncements.
5 Mr. Bonniwell stated that the requirements of this statement are effective in three phases based
6 on a government's total annual revenues in the first fiscal year ending after June 15,1999. He
7 indicated that earlier implementation of this Statement was encouraged but not required.
8 The Council discussed the items reviewed by Mr. Bonniwell and thanked him for coming.
9 VI. REVIEW ITEMS.
10 Mayor Cavanaugh mentioned the Stonehouse and the rumors of closing it down. The Council
11 discussed the rumors, the pull-tabs, and the Sports Boosters. Mayor Cavanaugh indicated that he
12 would like the City Council to determine a process by which it is decided to shut down the
13 Stonehouse, in order to prevent them from being forced to do so in an unprepared manner.
14 City Manager Momson recommended that the appropriate people from the Stonehouse and
15 Sports Boosters be invited to the next City Council Study Session in June.
*6 Mr. Mornson reviewed a request for the Concert Series to be given some grant money.
17 Councilmember Hodson recommended that the Concert Series be given a one-time $2,000 grant.
18 The Council agreed.
19 Motion by Hodson, second by Sparks, to give the Concert Series a one-time$2,000 grant.
20 Motion carried unanimously.
21 Councilmember Horst stated that there was a request for new carpeting in the Community
22 Service classrooms. He recommended that the Council approve a $3,000 budget for the carpet.
23 Motion by Horst, second by Sparks to give $3,000 toward the new carpet for the Community
24 Service classrooms.
25 Motion carried 4-1. Councilmember Thuesen abstained.
26 VII. INFORMATION AND ANNOUNCEMENTS.
27 Councilmember Hodson mentioned the annual Village Gardeners Sale that would take place next
28 week.
29 Councilmember Sparks mentioned the series of entertainment that will be happening in the fall
30 over at the High School in October. She stated that tickets needed to be purchased by May 25`h
for the fall entertainment.
City Council Study Session Meeting Minutes
May 8, 2001
Page 9
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1 Councilmember Thuesen referred to the storm water discussion earlier this evening. He stated
2 that he had gone through the intersections that had been improved during the Sunday evening
3 storm, and they were dry. He suggested that improvements to the other areas of concern happen
4 as soon as possible.
s VIII. ADJOURNMENT.
6 Motion by Councilmember Horst to adjourn the meeting at 9:40 p.m.
7 Motion carried unanimously.
8 Respectfully submitted,
9 Courtney Seesz
10 TimeSaver Off Site Secretarial, Inc.
11
12 May
13 ATTEST:
14 City Clerk
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