HomeMy WebLinkAboutCC MINUTES 041220160
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CITY OF ST. ANTHONY
CITY COUNCIL REGULAR MEETING MINUTES
APRIL 12, 2016
CALL TO ORDER,
Mayor Faust called the meeting to order at 7:00 p.m.
PLEDGE OF ALLEGIANCE.
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11 Mayor Faust invited the Council and audience to join him in the Pledge of Allegiance.
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13 ROLL CALL.
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15 Present: Mayor Faust, Councilmembers Brever, Jenson, and Stille.
16 Absent: Councilmember Gray.
17 Also Present:
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Guests:
City Manager Mark Casey, Finance Director Shelly Rueckert, City Engineer Todd
Hubmer, and Financial Advisor Stacie Kvilvang - Ehlers & Associates.
Gary Krueger (Supervisor of Remediation Division with the Minnesota Pollution
Control Agency), Jim Kelly (Environmental Health Division at the Minnesota
Department of Health), Michael Fix (United States Army), Jamie Wallerstad
(Environmental Specialist), Carla Peterson (Supervisor of the Community Public
Works and Supply Unit), and Greg Johnson (WSB).
CONSIDERATION, DISCUSSION, AND POSSIBLE ACTION ON ALL OF THE FOLLOWING
ITEMS.
I. APPROVAL OF APRIL 12, 2016 CITY COUNCIL MEETING AGENDA.
Motion by Councilmember Jenson, seconded by Councilmember Brever, to approve the City
Council Meeting_Aeenda of April 12 2016
Motion carried 4 -0.
II. PROCLAMATIONS AND RECOGNITIONS — NONE.
III. CONSENT AGENDA.
A. Approval of March 22, 2016, City Council meeting minutes
B. Licenses and Permits•
C. Claims:
D. Approval of Resolution 16 -034 a Resolution Accepting Donations and Grants in the 1"
Quarter of 2016: and
E. Approval of Resolution 16 -035 a Resolution Supporting Dedicated State Funding for
City Streets.
Mayor Faust recognized the organizations that had made donations totaling $644,620.
City Council Regular Meeting Minutes
April 12, 2016
Page 2
Motion by Councilmember Brever, seconded by Councilmember Jenson to approve the Consent
Agenda items as presented.
4 Motion carried 4 -0.
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6 IV. PUBLIC HEARING
8 A. Resolution 16 -036 a Resolution Relating to Property Tax Abatement Granting the
9 Abatement.
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11 Mayor Faust opened the public hearing at 7:03 p.m.
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13 Ms. Stacie Kvilvang from Ehlers & Associates summarized the bonds before the Council that
14 will be used to finance water quality and flood improvements to Mirror Pond, the City's regional
15 storm water pond, and complete nearly 1.5 miles of new sidewalk construction and ADA
16 upgrades at eight intersections to improve pedestrian safety.
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18 Ms. Kvilvang stated overall, the total project costs are approximately $2,975,000. It was noted
19 the City will receive a $1,142,000 grant from the Rice Creek Watershed District and the City will
20 contribute approximately $400,000 from other City funds towards the project. The bonds have
21 been sized in the anticipation the City will receive HSIP funds in a couple years. The annual tax
22 levy will be $100,000 with a bond size of $1,495,000.
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24 Ms. Kvilvang referenced a map depicting the project area and explained as part of the public
25 hearing process and tax abatement bond is to identify the parcels benefiting from the
26 improvements. She described the parcels where the City's portion of taxes will be abated and
27 explained the City has the authority under Minnesota Statute 469 to issue abatement bonds for
28 the projects. One requirement to do so, is to hold a public hearing on the amount of the
29 abatement to be granted, identify the properties from which they will abate the City's portion of
30 the taxes, and describe the public purpose for granting the abatement.
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32 Ms. Kvilvang reviewed the properties surrounding Mirror Lake that the City will be abating its
33 portion of the taxes as listed in her April 12, 2016, memorandum to City Manager Casey. The
34 public purpose in granting the abatement is that the City expects the benefits to the City of the
35 abatement to at least equal or exceed the costs to the City and that granting the abatement is in
36 the public interest.
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38 Councilmember Stille stated the City did this once before for Emerald Park and this exercise is
39 due to the type of bonds being implemented and does not mean people will not have to pay more
40 or less taxes than if traditional bonds had been issued. Ms. Kvilvang confirmed that is correct
41 and explained tax abatement, which is similar to the typical 429 bond process, but in this case the
42 statute requires identification of the abated parcels.
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44 Mayor Faust asked the audience if anyone would like to address this issue.
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46 There being no public input, Mayor Faust closed the public hearing at 7:06 p.m
City Council Regular Meeting Minutes
April 12, 2016
Page 3
Motion by Councilmember Stille seconded by Councilmember Brever to approve Resolution
16 -036 a Resolution Relating to o Property Tax Abatement Granting the Abatement
Motion carried 4 -0.
V. REPORTS FROM COMMISSION AND STAFF - NONE.
9 VI. GENERAL BUSINESS OF COUNCIL.
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11 A. Presentation by City Engineer Minnesota Pollution Control Agency, and Minnesota
12 Department of Health.
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14 City Engineer Hubmer introduced the team who is working with City staff to address the issue of
15 1,4 Dioxane that was identified by the Minnesota Health Department last year. He described the
16 meetings held with this team over the last year as they are regulators of the quality of water in
17 the ground that effects St. Anthony as well as setting the limits for contaminates that can be in
18 the drinking water supply.
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20 Gary Krueger, Supervisor of Remediation Division with the Minnesota Pollution Control
21 Agency (MPCA), stated this Division deals with the clean up of contaminated sites. He provided
22 a brief overview on the status of the TCAAP and ongoing cleanup of that site. Mr. Krueger
23 presented a TCAAP site map that identified the cleanup and disposal areas. He explained this
24 was one of the first Super Fund sites listed so there has been significant cleanup for the future
25 redevelopment of the property. It was noted the groundwater containment system treats and
26 discharges water to an on -site gravel pit; however, it does not remove 1,4 Dioxane. The Army
27 has studied the area of the plume on and off the site and considered treatment for removal of the
28 1,4 Dioxane for the outside wells. He noted the size of the Dioxan plume, which took a lot of
29 years to create, has been reduced because of the pumping going on but it will take years to better
30 contain it. Mr. Krueger reviewed the points of the Army's off -site monitoring and described the
31 extent of 1,4 Dioxane off the site. He noted the 1,4 Dioxane levels in the New Brighton and St.
32 Anthony wells and stated the Army has been investigating the extent of the Dioxan plume, what
33 can be done about it, and options for additional treating for the municipal drinking water supply.
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35 Jim Kelly, Environmental Health Division at the Minnesota Department of Health (MDH),
36 explained how this issue was found through a nation wide effort to address unregulated
37 contaminates in the nation's drinking water supply through testing every three to five years. Mr.
38 Kelly stated as these are unregulated contaminates, the MDH has developed Guidance Values
39 but compliance is voluntary. He stated this periodic testing is conducted on water supplies of
40 communities serving over 10,000 residents and if found, residents are usually notified through
41 that city's consumer confidence report.
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43 Mr. Kelly explained what is meant by an `emerging contaminant,' noting there is also not a
44 health standard or regulation but often times have been evaluated by the State so if they are
45 found, guidance can be provided. He described the past use of 1,4 Dioxane, usually to stabilize
46 chlorinated solvents, where it has been found, and how it enters the environment and stays in
City Council Regular Meeting Minutes
April 12, 2016
Page 4
1 water at low levels. In Minnesota, 1,4 Dioxane has been detected in several municipal water
2 supplies including New Brighton, St. Anthony, and Fridley. As the Minnesota Department of
3 Health has not been granted the authority to regulate this chemical by the Environmental
4 Protection Agency (EPA), it created and propagated Health Based Guidance Values for 1,4
5 Dioxane starting three years ago.
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7 Mr. Kelly stressed that the levels found in St. Anthony's public drinking water system are small
8 and do not exceed the Guidance Value that has been developed by the MDH. He credited City
9 staff for operating the City's water system in a matter that has kept those levels low to provide
10 clean, safe drinking water. Mr. Kelly explained why the MDH set the guidance of 1,4 Dioxane
11 in drinking water at 1 part per billion and indicated there have never been any cases of liver
12 cancer in people linked to 1,4 Dioxane. He explained that while the existing levels of 1,4
13 Dioxane in municipal water supplies is not an immediate health concern, when drinking that
14 water daily over a lifetime the exposure can very slightly increase the likelihood of cancer. Mr.
15 Kelly stated in Minnesota, that is taken seriously so very protective guidance was established to
16 assure that does not happen.
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18 Mr. Kelly stated the MDH first reviewed 1,4 Dioxane in 2011 and adopted the guidance as a rule
19 in 2013. He stressed that the risk of developing cancer from exposure to 1,4 Dioxane at the
20 amounts found in the City's drinking water is very low, 1 in 100,000, and the use of water in
21 other activities will also not create increased risk for health problems. Mr. Kelly commended St.
22 Anthony for being proactive in addressing the 1,4 Dioxane issue. He explained that carbon
23 filters and other household systems are not very effective in removing this chemical so treatment
24 at the source will be the most effective remedy.
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26 Michael Fix, United States Army, stated the Army is appreciative of the professional and
27 cooperative working relationship exhibited by the City in working through this problem. He
28 stated the City's issue is also very evident in the Army's environmental program, noting that
29 Pentagon staff have been here to visit and are closely monitoring the process. Mr. Fix stated the
30 Army intends to be supportive of the City so it can proceed to protect its population.
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32 Mayor Faust stated his appreciation to the team, noting the City is proceeding with caution and
33 he appreciates the professionalism shown towards the City. He stated the City's word is its bond
34 and the City will continue to take steps to ally any public concerns and assure they have clean
35 drinking water.
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37 Mr. Hubmer described the work done over the past year and provided a PowerPoint presentation
38 on 1,4 Dioxane; project coordination with the US Army, MPCA and MDH; location City wells;
39 and, levels of Dioxane found in each City well. He explained that Well 4 is not being used as the
40 level of 1,4 Dioxane has risen from .9 to 1.4 -1.5 parts per billion. Mr. Hubmer noted by
41 blending water from Wells 3 and 5, the level of 1,4 Dioxane is well below the guidance of 1 part
42 per billion. That is the water currently being delivered to St. Anthony.
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44 Mayor Faust stated it is important the public realizes there are two arms - length transitions
45 occurring: the State's tests and the City's tests that are completely separate. Mr. Hubmer
City Council Regular Meeting Minutes
April 12, 2016
Page 5
1 concurred and stated they take the credibility of testing seriously and test results are released to
2 the public.
4 Mr. Hubmer presented five options for addressing 1,4 Dioxane: 1) blend City wells, 2) construct
5 deeper wells into the Mt. Simon - Hinckley aquifer, 3) purchase water from Minneapolis, 4)
6 purchase water from St. Paul Regional Water Services, or 5) implement treatment of 1,4
7 Dioxane. He explained why staff focused on Options 3 and 5 as being the most viable long term.
8 With regard to Option 2, Mr. Hubmer stated the City's wells are in the Prairie Du Chien -Jordan
9 aquifer and reviewed the advantages and disadvantages of using the deeper Mt. Simon - Hinckley
10 aquifer including the need to treat to remove radium and obtain a DNR permit. The 20 -year cost
11 to drill three new wells into that deeper aquifer is estimated at $18 million including
12 construction, financing, interest, maintenance, and production costs.
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14 Mr. Hubmer reviewed the advantages and disadvantages of Option 3 to purchase water from
15 Minneapolis including loss of control on water costs. The 20 -year cost to construct the system
16 required to use water from Minneapolis is estimated at $35 million including capital, finance,
17 interest, maintenance, and production costs.
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19 Mr. Hubmer then reviewed the advantages and disadvantages of Option 5 to implement
20 treatment including significant up front capital expenditure. The 20 -year cost to treat 1,4
21 Dioxane is estimated at $16.6 million including capital costs, financing, interest, maintenance,
22 and production costs.
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24 Mr. Hubmer compared the costs of Options 2, 3, and 5 and displayed concept drawings and
25 colored renderings to expand the treatment plant. He stated staff is asking the Council to
26 consider authorization to proceed with final design. If approved, the schedule would be to accept
27 the feasibility report, order plans, and advertise for bids on April 12, receive bids and award the
28 contract in August 2016, begin construction in October 2016, and start up in August 2017.
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30 Mayor Faust asked Mr. Fix to inform the Army that when the City does system enhancements,
31 it's on `their dime' and they will not try to have others pay that cost. He stated the City will be
32 honest and fair in how it approaches this issue, which has already been articulated by City staff
33 but he also wanted to make that clear.
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35 Councilmember Stille noted Option 5 is not solely to treat 1,4 Dioxane and asked how that may
36 be of benefit. Mr. Hubmer stated this option would construct an advanced system for treatment
37 of emerging contaminants and adding it to the City's current treatment system will result in a
38 robust advanced system that treats a wide suite of known and emerging pollutants.
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40 Councilmember Stille asked how much hydrogen peroxide will be needed for this level of
41 treatment. Greg Johnson, WSB, stated the concentration of peroxide is very low, less than 50
42 part per billion.
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44 Mayor Faust opened the floor to the public for comment or question.
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City Council Regular Meeting Minutes
April 12, 2016
Page 6
1 Jerry Smith, 3629 Silver Lake Road, noted the plumes are not static and asked about the ability
2 of the proposed system to treat higher concentrations should that occur and potential added costs
3 to do so. Mr. Hubmer confirmed the system will be able to treat higher concentrations of 1,4
4 Dioxane.
6 Mayor Faust stated the City is being proactive in addressing 1,4 Dioxane and the system can
7 probably be `dialed up' should the concentration of 1,4 Dioxane increase. Mr. Krueger stated
8 New Brighton is undergoing a similar process to treat its municipal water supply, which should
9 keep water in that area from increasing in concentrations of 1,4 Dioxane.
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11 B. Resolution 16 -037 a Resolution Receiving Feasibility Report Ordering Plans and
12 Specifications. and Authorizing the Advertisement of Bids for the Advanced Oxidation
13 Water Treatment Facility.
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15 Mr. Hubmer stated the resolution before the Council receives the feasibility report, orders plans,
16 and advertisement for bids to expand the water treatment facility. Mayor Faust stated the
17 resolution is for Option 5 as it was found there are too many unknowns in the other four options
18 and expedience is needed.
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20 Motion by Councilmember Jenson, seconded by Councilmember Brever, to adopt Resolution 16-
21 037 a Resolution Receiving Feasibility Report Ordering Plans and Specifications and
22 Authorizing the Advertisement of Bids for the Advanced Oxidation Water Treatment Facility.
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24 Mayor Faust stated this is a difficult issue and the Council is fortunate to have the confidence of
25 the public behind this decision. Councilmember Jenson concurred and stated the importance of
26 providing a safe drinking supply.
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28 Motion carried 4 -0.
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30 C. Resolution 16 -038: St. Anthony Water Restrictions
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32 City Manager Casey reviewed the resolution with the Council that would impose water
33 restrictions. He indicated the City is considering implementing short-term water conservation
34 measures to limit the amount of water that is drained from the aquifer during summer months.
35 Staff recommends water restrictions to conserve water and potentially slow down the movement
36 of Dioxane. He reviewed the date and time restrictions that, if approved, would be in effect until
37 further notice and encouraged residents to view the City's website for additional information.
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39 Motion by Councilmember Brever, seconded by Councilmember Stille to adopt Resolution 16-
40 038 a Resolution Imposing Water Restrictions
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42 Councilmember Stille explained this is a trial that will be monitored to determine if further
43 restrictions are warranted.
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45 Mayor Faust noted the Metropolitan Council indicated that water usage increases 2.4 times
46 during summer months and it increases 1.5 times in St. Anthony, showing a level of
City Council Regular Meeting Minutes
April 12, 2016
Page 7
1 conservation. He stated he views this restriction as a conservation method to assure the wise use
2 of water, a quintessential need. Mayor Faust asked residents to learn more about water
3 conservation and the impact of watering lawns.
Motion carried 4 -0.
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7 Mayor Faust extended the City's heartfelt thanks and appreciation to the US Army, MPCA and MDH
8 staff for their cooperation and assured them the City will do likewise without equivocation.
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10 D. St. Anthony Finance Department Annual Report
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12 Finance Director Rueckert provided a PowerPoint presentation of the City's 2015 annual report,
13 noting the mission statement remains unchanged. She presented the Finance Department's
14 organizational chart and described the work tasks and accomplishments of each core staff
15 member. Ms. Rueckert reviewed the finance activity unique to 2015 including hiring of a staff
16 member, complying with the Affordable Care Act, building official transition with the City New
17 Brighton, creating a community profile, and technological advances.
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19 Ms. Rueckert described the results of long -term financial activity to refinance the 2006 TIF
20 revenue bonds and rebase use of liquor profits. She listed the agencies to which finance staff
21 provides support and activities performed.
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23 Councilmember Brever thanked Ms. Rueckert for the report, noting it was a clever way to get
24 statistics and details out to the public on what the Finance Department has done for the City. Ms.
25 Rueckert noted the finance staff is the `heart of what makes this engine go.'
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27 Councilmember Jenson complimented Ms. Rueckert on the booklet of information she compiled
28 and encouraged the public to review it in more detail to learn about the services provided.
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30 Mayor Faust referenced the high level of activity performed, noting all functions are found to be
31 flawless when the annual audit is performed. He stated people forget all of the issues that have
32 taken on a different life (i.e., 1,4 Dioxane, Affordable Care Act) which is beyond just paying the
33 City's bills. In most cases finance staff is the first interaction with the public, making it terribly
34 important. Mayor Faust stated over the years, he has always heard positive reports on that first
35 impression, for which the department should be proud. With regard to the Community Profile,
36 he noted it is for current and new residents and an economic development tools for businesses.
37 Mayor Faust congratulated Ms. Rueckert on those accomplishments and asked her to pass on the
38 Council's deepest thanks and appreciation to the Finance Department for the hard work they do.
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40 VII. REPORTS FROM CITY MANAGER AND COUNCIL MEMBERS.
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42 City Manager Casey stated a lot of information was heard tonight relating to the 1,4 Dioxane
43 issue and brought people's attention to the City's website that contains a lot of information on
44 water conservation and will be updated with regular progress reports and the water restrictions.
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City Council Regular Meeting Minutes
April 12, 2016
Page 8
1 Mr. Casey recommended residents also look to the City's website for updated information on the
2 2016 road projects, restrictions, and detours. He asked residents to be patient as these needed
3 street projects are constructed.
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5 Councilmember Jenson stated he attended the March 29, 2016, joint meeting with the District 22
6 School Board.
8 Councilmember Stille stated he attended the joint meeting with the School Board on March 29,
9 2016. On April 7, he attended the Community Services Advisory meeting, where Julianne
10 Hunter indicated there may not be a VillageFest parade this year unless a Chair volunteers. He
11 noted VillageFest is a separate community -driven organization that is not managed by the City
12 and encouraged interested residents to call her. On April 11, 2016, he attended the
13 Comprehensive Plan Visioning Committee meeting and brainstorming session along with
14 Councilmember Brever that Planner Breanne Rothstein managed.
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16 Councilmember Breuer stated she also attended joint meeting of School Board on March 29,
17 2016. This past Sunday, she attended a Sister City meeting where they continue to coordinate
18 for a musical piece to be performed by the St. Anthony orchestra in November of 2017.
19 Councilmember Brever stated she also attended the Comprehensive Plan Visioning Session and
20 complimented Planner Rothstein for bringing people together to get their views on how to
21 strengthen the Village. She stated there will be more opportunities for input and asked residents
22 to view the City's website for that information.
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24 Mayor Faust reported on the Council's meeting on March 28, 2016, with the Planning
25 Commission as well as the March 29, 2016, joint School Board work session. On April 7t' he
26 attended a Mississippi Water Management Organization Board meeting to consider funding for
27 Fourth Street to implement water reuse projects. On April 11, 2016, he attended the Regional
28 Council of Mayors (RCM) meeting that included a component of water so Green Corp member
29 Kristin Seaman accompanied him. Mayor Faust stated he will get copies of the report from Ryan
30 Development on tendencies in the marketplace and real estate.
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32 Mayor Faust stated during the RCM meeting, he reported on the issue the City is facing with 1,4
33 Dioxane since a water issue was under discussion. This created a great deal of conversation and
34 a committee was formed, on which he will serve. That Committee will also coordinate with the
35 League of Minnesota Cities and Governor's office as emerging contaminants is a Statewide
36 issue. Mayor Faust referenced a publication by the Fresh Water Society entitled Water
37 Underground, which he found informative.
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39 VIII. COMMUNITY FORUM.
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41 Mayor Faust invited residents to come forward at this time and address the Council on items that
42 are not on the regular agenda.
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44 Hearing none, Mayor Faust moved forward with the agenda.
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46 IX. INFORMATION AND ANNOUNCEMENTS — NONE.
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City Council Regular Meeting Minutes
April 12, 2016
Page 9
None.
X. ADJOURNMENT.
Mayor Faust adjourned the meeting at 8:15 p.m.
Respectfully submitted,
Carla Wirth
Timesaver Off Site Secretarial, Inc.
ATTEST: 114 (/I/"'
City Clerk
Mayor