HomeMy WebLinkAboutCC MINUTES 10132009I CITY OF ST. ANTHONY
2 CITY COUNCIL REGULAR MEETING MINUTES
3 OCTOBER 13, 2009
4
5 CALL TO ORDER.
6
7 Mayor Faust called the meeting to order at 7:00 p.m.
8
9 PLEDGE OF ALLEGIANCE.
10
11 Mayor Faust invited the Council and audience to join him in the Pledge of Allegiance.
12
13 ROLL CALL.
14
15 Present: Mayor Faust; Councilmembers Gray, Roth, Stille, and Thuesen
16 Absent: None
17 Also Present: City Manager Mike Momson, Finance Director Roger Larson, and Public Works
18 Director Jay Hartman.
19
20
21 CONSIDERATION, DISCUSSION, AND POSSIBLE ACTION ON ALL OF THE FOLLOWING
22 ITEMS.
23
24 I. APPROVAL OF OCTOBER 13, 2009 CITY COUNCIL MEETING AGENDA.
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26 Motion by Councilmember Thuesen, seconded by Councilmember Gray, to approve the City
27 Council Meeting Agenda of October 13, 2009.
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29 Motion carried unanimously.
30
31 II. PROCLAMATIONS AND RECOGNITIONS.
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33 None.
34
35 III. CONSENT AGENDA.
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37 A. Consider September 22, 2009 Council meeting minutes
38 B. Consider licenses and permits.
39 C. Consider payment of claims.
40 D. Resolution 09 -076: Accepting the Resignation of Planning Commissioner Joel
41 Stromgren.
42 E. Resolution 09 -077: Appointing Pat Niccum to the Planning Commission
43 F. Resolution 09 -078: Approving Northwest Youth and Family Services Contract
44
45 Motion by Councilmember Stille, seconded by Councilmember Roth, to approve the Consent
46 Agenda items.
47
48 Motion carried unanimously.
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City Council Regular Meeting Minutes
October 13, 2009
Page 2
IV. PUBLIC HEARING.
None.
V. REPORTS FROM COMMISSION AND STAFF.
None.
9 VI. GENERAL BUSINESS OF COUNCIL.
10
11 A. Update on Tiered Water Rates.
12
13 City Manager Mornson reported that Minnesota Statutes, Section 103G.291 was amended to
14 include a requirement for public water suppliers serving more than 1,000 people to adopt a water
15 rate structure that encourages conservation. To comply with the law, effective January 1, 2010,
16 cities must implement a tiered system of water rates that charges a higher rate per unit as water
17 usage increases. The conservation rates are for all user groups including residential, multi - family
18 and commercial users of water. This is the fourth City Council meeting on this subject. Staff was
19 directed to contact the DNR to request a one -year extension. The DNR has denied the request
20 indicating the law does not give the DNR the authority to grant extensions. City Manager
21 Mornson indicated Council will be asked to provide direction on the following:
22 ■ Base Rate (staff recommendation to leave the base rate at $2.60 per 1,000 gallons).
23 ■ Percentage split between tiers
24 ■ Amend Ordinance 33.036 to include Tiered Water Rates (three readings required).
25
26 Finance Director Larson and City Manager Morrison provided a PowerPoint presentation on the
27 proposed City of St. Anthony Tiered Water Rates. They provided the following information in
28 response to questions of the City Council.
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30 Based on staff's discussions with the DNR, the DNR will accept the rate structure being
31 considered by St. Anthony. The DNR would like a high differential between the tiers, but there is
32 no penalty if the City does not implement the DNR recommendation. There would be a penalty if
33 the City does not implement a tiered rate system. An example of this would be denial of DNR
34 permits.
35 In regards to the high percentage of commercial users included in Tier I, a large number of those
36 users are on a minimum bill because they do not have much activity. The City Engineer and
37 financial advisors have reviewed all of the tiers and determined that the proposed rate structure
38 appears to be equitable.
39 Rate structures being adopted by other cities varies. There is an approximate 50/50 split in the
40 cities that are increasing the base rate. Of the cities that have implemented a tiered rate structure,
41 all have indicated that a sensitivity analysis will be done to make sure that one group is not being
42 treated unfairly or receiving an extra benefit as a result of the new rate structure.
43 The intent of the DNR law is to change behavior by impacting the rates so that people will take
44 note and move to a conservation mode when they can apply it. The result of the rate structure
City Council Regular Meeting Minutes
October 13, 2009
Page 3
should be to penalize residential water use outside of the home, such as washing cars, lawn
sprinkling, etc.
4 Councilmember Stille commented that the discussion of implementing a tiered water rate is
5 already affecting some of the residents. He was contacted by a resident that is a similar user to
6 him, and appears to be using about 75% more water than he. As they flush out some of these
7 issues people will likely fix leaks, etc. He suggested publishing the average water use of a typical
8 family of four for residents to note.
10 Councilmember Thuesen commented that implementing a tiered water rate structure will likely
11 grab the attention of the consumers and require them to think about how much water they use.
12
13 Councilmember Roth questioned if a rate increase would have been necessary regardless of the
14 law enacted by the DNR in order to generate additional revenue to cover expenses. Finance
15 Director Larson replied that a rate increase would have been very minimal at this time.
16
17 Councilmember Gray stressed that the intent of the tiered rate structure is not to raise revenue.
18 The rates that are collected are to cover the expenses associated with providing water and
19 necessary capital improvements.
20
21 Mr. Dennis Cavanaugh, 2919 St. Anthony Boulevard, addressed the City Council and stated the
22 City Council has made an environmental statement about how they feel about water with the
23 water reuse facility. This tiered pricing slides right into a continuing theme the Council is
24 developing. Mr. Cavanaugh shared information about a leak in his pool of approximately 200
25 gallons per day. The estimate to fix the leak was about $1,000, while the cost to him for the leak
26 was about $15 per month. He noted with the DNR proposed rate structure his last quarter's water
27 bill would have increased $225. This is the type of impact that will address water conservation.
28 Mr. Cavanaugh outlined the following three options he sees before the Council: 1) Do nothing;
29 2) Implement the options being proposed which really do not get the attention; 3) Implement a
30 broad water conservation ordinance.
31
32 Mr. Cavanaugh provided information on the following recommendations to address water
33 conservation in the City: 1) Establish a goal, such as reducing water consumption by 20% in five
34 years; 2) Water softening done by the City (Mr. Cavanaugh shared expenses and cost savings
35 associated with this recommendation); 3) Incentive program for users of city water to change out
36 water softeners; 4) Incentive program to change out toilets and shower heads; 5) Requirement for
37 sprinkler systems to be intelligent.
38
39 Mr. Cavanaugh also suggested that the City move to an on -line monthly water billing which
40 would provide feedback on water use on a more current basis.
41
42 Mr. Ken Brown, 3422 Silver Lane, addressed the City Council and stated the one thing that
43 never seems to come up with this topic is how much revenue is projected by the new tier rates.
44 Sewer rates will need to be raised to cover the deficit. He questioned why water and sewer are
45 not combined, with the additional revenue that may be raised by the water rate increase going to
46 offset the sewer rate deficit. He suggested including the tier on water bills, with a note on the
City Council Regular Meeting Minutes
October 13, 2009
Page 4
1 savings that would be associated with using less water and dropping down a tier. He stated his
2 position that there is support for clean water and water conservation, which is shown by the tax
3 increase voted into effect a few years ago.
4
5 Mayor Faust thanked the public for the comments. He commented that the City has taken a
6 conservative, measured approach with this issue. They will be sensitive to benchmarking this in
7 the future. The ultimate goal is to conserve water.
9 Councilmember Roth suggested that in order to make more of an impact, Option 2 be amended
10 with the following differential between tiers: 10% / 15% / 25 %.
11
12 Councilmember Gray noted approximately 50% of the households are in Tier I, and that there is
13 no incentive for these individuals to reduce their water consumption. He stated his position that
14 the focus should not be limited to the other 50% of users.
15
16 Councilmember Stille indicated he would be supportive of the amendment proposed by
17 Councilmember Roth. He pointed out that the rates will be revisited annually and can be adjusted
18 in the future. He suggested publishing the citywide water consumption quarterly.
19
20 Councilmember Thuesen stated his preference for Option 2, and indicated he would be agreeable
21 of the amendment proposed by Councilmember Roth. In regard to the concern raised about Tier I
22 by Councilmember Gray, there is likely some conservation occurring with this group simply
23 because there is not a lot of use by this tier. He would not propose increasing this tier at this time,
24 but it should likely be reviewed by future City Councils.
25
26 Mayor Faust suggested implementing an additional tier by amending the tiers as follows:
27
28 0 — 7,500 Gallons Tier I Remain at $2.60 base rate
29 7,501 - 15,000 Gallons Tier II
30 15,001— 22,500 Gallons Tier III
31 22,501— 30,000 Gallons Tier IV
32 Over 30,000 Gallons Tier V
33
34 *Minimum Bill 7,500 Gallons
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36 Percentage split between tiers: 5% / 10% / 15% / 25%
37
38 Council consensus was to direct staff to include the first reading of Ordinance 33.036 on the
39 October 27, 2009 City Council meeting with the above rate structure as suggested by Mayor
40 Faust.
41
42 B. Update on Sewer Rates.
43
44 City Manager Mornson reported that based on 2008 financial data, the City Auditor
45 recommended a sewer rate increase. Operating revenues totaled $797,360 compared to
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October 13, 2009
Page 5
1 expenditures of $810,920. The deficit of ($13,560) was offset by miscellaneous revenue such as
2 late fees, interest earnings and sewer connection charges.
3
4 City Manager Mornson and Finance Director Larson provided a PowerPoint presentation on the
5 proposed City of St. Anthony Sewer Rate Increase, including the following information:
6 ■ 2008 Sewer Revenues & Expenditures
7 ■ 2009 Projected Sewer Operating Costs
8 ■ Charges for 2010 Sanitary Waste Disposal Increased by the Metropolitan Council
9 • 2009/2010 Projected Sewer Operating Costs
10 ■ Rate Needed to Balance Budget:
11 o Recommended rate of $3.50 per 1,000 gallons
12 o Current rate = $3.30 per 1,000 gallons
13 ■ Residential Impact
14 ■ Impact, of Future Increases
15
16 City Manager Morrison requested direction from Council on amending Ordinance 33.108 by
17 increasing the current sewer rate to $3.50 per 1,000 gallons. He advised staff recommends that
18 discussion on providing funding for future infrastructure improvements by increasing the sewer
19 rate to more than $3.50 per 1,000 gallons be deferred to the 2010 goal setting.
20
21 Councilmember Thuesen expressed concern that cities seem to be penalized for the Metropolitan
22 Council's inability to anticipate the loss in SAC Credits. Mayor Faust commented that the
23 growth in the past likely subsidized a lower rate than should have been charged.
24
25 There was additional discussion on the role and authority of the Metropolitan Council.
26
27 Councilmember Roth questioned what funds will be used to cover the 2009 shortfall of $45,990.
28 Finance Director Larson replied that there is an adequate balance in the Water and Sewer Fund to
29 cover the shortfall.
30
31 Councilmember Roth inquired whether there should be consideration of a rate increase higher
32 than the $3.50 recommendation. Finance Director Larson explained that this fund has been
33 looked at as a break even fund. This should be achieved with the rate of $3.50 per 1,000 gallons.
34
35 Councilmember Roth asked whether it would be appropriate to repay the Water and Sewer Fund
36 for the $60,000 used to cover the 2008 and 2009 deficits. Finance Director Larson replied that
37 the fund balance is approximately $200,000. Periodically the City Engineer has looked to this
38 fund as a funding source for projects. Mayor Faust noted that previous surpluses in the fund were
39 used to cover the deficit.
40
41 Councilmember Gray suggested future discussions about designating the $200,000 fund balance
42 for capital improvements. There should also be discussions on the additional revenue that may
43 occur from the tiered water rate structure that will be implemented.
44
City Council Regular Meeting Minutes
October 13, 2009
Page 6
1 Councilmember Stille noted this would involve Council discussion from a policy perspective
2 relating to capital improvements and the appropriate fund balance to maintain from a
3 contingency perspective.
Mayor Faust stated his position that the current $200,000 fund balance should remain as a
contingency for unexpected repairs.
8 Council consensus was to direct staff to proceed with the ordinance amendment process for
9 Ordinance 33.108 at the recommended rate of $3.50 per 1,000 gallons.
10
11 C. Quarterly Goals Undate.
12
13 City Manager Mornson provided the quarterly update on the City Council Goals as outlined in
14 the October 27, 2009 memorandum to the Mayor and City Council:
15 1) Environmental Stewardship
16 2) Improve and Maintain Infrastructure
17 3) Technology Advances
18 4) Maintain / Improve Housing Stock
19 5) Senior Transitions
20 Other
21
22 Councilmember Stille inquired about the status of exploring the feasibility of a community
23 garden at the previous bowling alley site. Public Works Director Jay Hartman indicated that the
24 concept is being considered. City Manager Momson noted the City of Brooklyn Park has
25 community gardens and the City of Albert Lea has over 40 community gardens.
26
27 Councilmember Stille requested staff to look into the feasibility of reinstalling the cross walk
28 sign that was removed from Silver Lake Road. Mayor Faust suggested the possibility of an
29 illuminated "Yield to Pedestrians" sign.
30
31 Councilmember Stille noted there had also been discussion in the past about including LED
32 lights on certain stop signs that are not read very well, particularly the one by the school that is
33 often missed due to glare from the sun.
34
35 VII. REPORTS FROM CITY MANAGER AND COUNCIL MEMBERS.
36
37 City Manager Momson reported on the following:
38 ■ St. Anthony Library will have extended hours on Saturdays starting Saturday, October
39 31, 2009 from 10 a.m. — 5 a.m.
40 ■ October 5, 2009 meeting with Ramsey County Administrator's staff regarding levies and
41 valuations — Council has been provided with an assessment report.
42 ■ October 6, 2009 meeting with garbage haulers.
43 ■ Refunding of three bond issues: Stacie Kvilvang of Ehlers and Associates will be present
44 at the October 27, 2009 City Council meeting. The bond sale will be included on the
45 November 24, 2009 meeting agenda if Council would like to proceed.
46 ■ Emerald Park Grand Opening is scheduled for October 14, 2009 at 5:00 p.m.
City Council Regular Meeting Minutes
October 13, 2009
Page 7
1 ■ November 20, 2009 deadline to submit applications to serve on the Planning and Park
2 Commissions
3 ■ 2010 Street Project Update
4 ■ Council members should inform staff if they are interested in attending the upcoming
5 Middle Mississippi Water Management Organization Open House so that the meeting
6 can be posted.
7 ■ Police Department is holding three seminars tonight on sexual assault, computers and
8 senior citizens.
9
10 Councilmember Thuesen stated he recently had to take time off, as he has had his second brain
11 surgery in 13 months. He feels good that will be able to attend the final City Council meetings to
12 finish the job he was elected for. He will be receiving a series of treatments each month, but it
13 should not interfere with his desire to finish out his term on the City Council.
14
15 Councilmember Gray reported on this attendance at the National Association of
16 Telecommunications Officers and Advisors (NATOA) conference in September as a
17 representative of the Northern Suburban Communications Commission. He was very impressed
18 with the tour he received of the facilities at Lafayette, Louisiana where there is fiber to the home.
19 He was also able to talk with the Monticello City Manager. The City of Monticello was
20 presented with an award for the communications network they are in the process of building. A
21 video presentation on the fiber to home system in Lafayette, Louisiana will be prepared for the
22 member cities to view.
23
24 Councilmember Roth reported on his attendance at the St. Anthony/New Brighton Community
25 Services Meeting on October 1, 2009. The 2009/2010 budget projected a deficit of $112,000.
26 Over the past two months due to the direction of Wendy Webster and due to increased
27 enrollment in the preschool program they are looking at a revised fund balance with a deficit of
28 only $30,000.
29
30 Councilmember Stille thanked Councilmember Thuesen for his dedication and pointed out that
31 he arranged his treatment schedule in order to be able to attend the last three City Council
32 meetings.
33
34 Councilmember Stille reported on his attendance at the following events:
35 September 29, 2009 Joint City Council/School Board meeting. There was discussion on
36 the possibility of funding that may be available through Hennepin County for
37 improvements to the park shared by the City and the School District. It was also
38 discussed that kindergarten enrollment is now made up of 75% resident students. This is
39 a very strong indicator that a lot of new families are moving into the City.
40 October 10, 2009 Fire Department Open House and Pancake Breakfast.
41
42 Mayor Faust reported on his attendance at the following events:
43 September 26, 2009 Grand Reopening of Silverwood Park with Councilmembers Stille
44 and Roth and the City Manager. Senator Klobouchar, former Senator Durenburger, and
45 other dignitaries were present. The park is stunning and a great asset to the City.
City Council Regular Meeting Minutes
October 13, 2009
Page 8
1 ■ September 28, 2009 final Fiscal Futures Policy Committee. The cities will be voting on
2 the policies in November.
3 ■ September 29, 2009 Quarterly Meeting with the School Board. Tours of the new facilities
4 are scheduled for October 21" and October 28`h. Senior citizens can call Community
5 Services at 612- 706 -1166 to schedule a tour.
6 • October 8, 2009 meeting with the Community Services Director on a number of issues,
7 including the Senior Transitions Goal, which will be reenergized.
8 • October 10, 2009 Fire Department Open House. Emergency preparedness pamphlets
9 were distributed and are available for the public.
10
11 Mayor Faust stated he has been asked to serve on a Metro Area Planning Group. There will be
12 meetings with representatives of the MPCA, Minneapolis, and the League of Minnesota Cities to
13 determine if legislation can be drafted to require plans such as the Comprehensive Plan and the
14 Watershed Plan to come due at the same time.
15
16 VIII. COMMUNITY FORUM.
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Mayor Faust invited residents to come forward at this time and address the Council on items that
are not on the regular agenda.
Mr. Dennis Cavanaugh, 2919 St. Anthony Boulevard, addressed the City Council and thanked
Councilmember Thuesen for his service. He stated his support of the library as an asset to the
community and that it should not be closed when improvements are completed at the library
located on Central Avenue. Mr. Cavanaugh stated his position for a single source garbage
hauling system.
IX. INFORMATION AND ANNOUNCEMENTS.
Mayor Faust announced that the most recent Village Notes has come out. Copies are available at
City Hall. He announced the 2009 Candidate Speak Out will air on Channel 15, Channel 16 and
the School District's channel. He directed staff to include this information on the City website.
X. ADJOURNMENT.
Mayor Faust adjourned the meeting at 8:57 p.m.
Respectfully submitted,
Carol Hamer
Timesaver Off Site Secretarial, Inc.
ATTEST:
City Clerk
ayor