HomeMy WebLinkAboutCC MINUTES 04082008I CITY OF ST. ANTHONY
2 CITY COUNCIL REGULAR MEETING MINUTES
3 APRIL 8, 2008
4
5 CALL TO ORDER.
6
7 Mayor Faust called the meeting to order at 7:00 p.m.
9 PLEDGE OF ALLEGIANCE.
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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; Councihnembers Gray, Roth, Stille, and Thuesen
16 Absent: None
17 Also Present: City Manager Mike Morrison, City Attorney Jay Lindgren, Assistant City Manager
18 Kim Moore - Sykes, Fire Chief John Malenick, Stacie Kvilvang of Ehlers & Associates,
19 and Jonathan North of Ehlers & Associates
20
21
22 CONSIDERATION, DISCUSSION, AND POSSIBLE ACTION ON ALL OF THE FOLLOWING
23 ITEMS.
24
25 I. APPROVAL OF APRIL 8, 2008 CITY COUNCIL MEETING AGENDA.
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27 Motion by Councilmember Thuesen, seconded by Councilmember Gray, to approve the City
28 Council Meeting Agenda of April 8, 2008.
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30 Motion carried unanimously.
31 11. PROCLAMATIONS AND RECOGNITIONS.
32
33 A. Graduation of Mrs. Wyatt's and Mrs. Gordon's Junior Achievement Class.
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35 Mayor Faust stated the Council is recognizing 60 students from Wilshire Park Elementary that
36 have been participating in the Junior Achievement program, a not - for - profit organization
37 financed by businesses, foundations, and individuals to educate and inspire young people to
38 value free enterprise, business, and economics to improve the quality of their lives.
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40 City Manager Momson stated he was a volunteer in the program and the students participated in
41 a six week "Our City" program which considers economic development, local businesses, and
42 career opportunities. He stated the students worked on several things, including planning and
43 zoning where they rezoned their classrooms and named their city, they worked with a planner
44 from the City to place a business on a zoning map, they worked with two full -time firefighters to
45 assist them with their building, they worked in groups on a restaurant, they worked with a
46 newspaper reporter and had an article written about their work, and finally, the students worked
47 on banking, including how to write checks and open a savings account.
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City Council Regular Meeting Minutes
April 8, 2008
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Mayor Faust then presented each student with a proclamation and expressed the Council's thanks
and congratulations to the students, parents, and teachers for their hard work on the project.
CONSENT AGENDA.
A. Consider March 25, 2008 Council meeting minutes.
B. Consider licenses and permits.
C. Consider payment of claims.
Motion by Councilmember Gray, seconded by Councilmember Stille, to approve the Consent
Agenda items.
Motion carried unanimously.
PUBLIC HEARING.
A. Resolution 08 -026; Giving Preliminary Approval for the Issuance of the City's General
Obligation Street Reconstruction Plan Bonds in an amount not to exceed $1,910.000 and
Adopting the e City of St. Anthony. Minnesota Street Reconstruction Plan of 2008 through
2012 therefor.
Mayor Faust opened the public hearing at 7:17 p.m.
Stacie Kvilvang, Ehlers & Associates, appeared before the Council. She explained at the March
11, 2008 Council meeting, the Council set a public hearing on the sale of Street Reconstruction
Bonds in an amount not to exceed $2.7 million to finance improvements on Silver Lake Road;
since that time, the construction bids have been received and the revised amount needed to
complete the project is $1,910,000. She stated that since Silver Lake Road is a County State Aid
Road, the City does not have the ability to assess benefiting property owners for a portion of the
project and it is proposed that the City utilize its authority to issue General Obligation Street
Reconstruction Bonds to finance the entire remaining balance of the project, in which the amount
financed will be paid 100% by a general tax levy. She noted that in order to utilize this type of
financing, the City has to prepare a 5 -year Street Reconstruction Plan and upon conclusion of the
public hearing this evening, the Council must approve the Street Reconstruction Plan via a
unanimous vote.
As no one wished to appear, Mayor Faust closed the public hearing at 7:22 p.m.
Motion by Councilmember Stille, seconded by Councilmember Gray, to adopt Resolution 08-
026; Resolution Giving Preliminary Approval for the Issuance of the City's General Obligation
Street Reconstruction Plan Bonds in an amount not to exceed $1,910,000 and Adopting the City
of St. Anthony, Minnesota Street Reconstruction Plan of 2008 through 2012 therefor.
Motion carried unanimously.
B. Resolution 08 -027; Resolution Providing for the Sale of $1,910,000 General Obligation
Street Reconstruction Bonds Series 2008.
City Council Regular Meeting Minutes
April 8, 2008
Page 3
2 Motion by Councilmember Thuesen, seconded by Councilmember Gray, to adopt Resolution 08-
3 027; Resolution Providing for the Sale of $1,910,000 General Obligation Street Reconstruction
4 Bonds Series 2008.
5 Motion carried unanimously.
6
7 Mayor Faust introduced Jonathan North of Ehlers & Associates. Ms. Kvilvang stated that Mr.
8 North recently joined Ehlers from Moody Investment Services in Chicago.
9
10 Mr. North addressed the Council and explained the impact of the subprime market on cities
11 across the country. He stated that when a city wants to issue bonds, it wants to do so at the lowest
12 possible interest rate; what has happened is that insurance companies have now been caught in
13 the subprime markets resulting in some insurance company ratings being downgraded. He
14 indicated that the City recently received a letter indicating that some of its bonds were
15 downgraded, and added this is not a reflection of the City, but rather, a reflection of what is
16 happening in the market today. He stated there are currently fewer insurance companies with an
17 "AAA" rating which means there is less competition among insurance companies. He indicated
18 there are a lot of investors putting their money into municipal bonds and they are still seeing low
19 interest rates; it was his opinion that there will continue to be fluctuation in the market.
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21 Councilmember Thuesen requested Mr. North comment on derivatives and floating rate debt.
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23 Mr. North stated there are a lot of cities that entered into variable rate debt, which means the rate
24 can change and short term rates have jumped around significantly. He explained there are also
25 auction rate securities, which are similar to variables, and those people who have issued auction
26 rate securities are having trouble re- auctioning the debt, with some paying interest as high as
27 20 %. He noted that because the City has a fixed rate, it is positioned well in the market.
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29 Councilmember Thuesen asked what it will take to stabilize the ratings that cities are facing at
30 this time.
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32 Mr. North replied that municipal debt is a very safe security and the default rate is very low. He
33 stated the marketplace is coming around to understanding this. He noted that other rating
34 agencies are currently looking at a new rating scale for the entire industry. He stated it will be
35 important for the City to pay attention to the diversity of its tax base and to keep an eye on long
36 term financial planning by having a goal and target in place that will allow the City to ride out
37 the storms in the near future. He stated there were previously eight or nine insurance companies
38 insuring debt and that number has dropped to two; as a result, they have seen some higher
39 premiums. He added there is not enough information at this point to render an opinion on the
40 impact this will have on cities due to the volatility in the market.
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42 Mayor Faust expressed his thanks to Mr. North and stated the City appears to be well positioned
43 in the market.
44
45 V. REPORTS FROM COMMISSION AND STAFF.
46 None.
City Council Regular Meeting Minutes
April 8, 2008
Page 4
VI. GENERAL BUSINESS OF COUNCIL.
4 A. Resolution 08 -028; Relating to the Seventh Amendment to a Redevelopment Agreement
5 by and among the he City of St. Anthony, the Housing and Redevelopment Authority of the
6 City of St. Anthony and Apache Redevelopment, LLC, dated December 19, 2003.
7
8 Stacie Kvilvang, Ehlers & Associates, stated at the February 5, 2008, Council work session, the
9 Council heard a proposal to change the Phase 113 housing component from 128 condominiums
10 (for sale) to 100 Cooperative Senior Units (for sale). She explained that the units will no longer
1 I be condominiums resulting in a difference in the way they are valued and based on the Council's
12 discussion, the Council requested staff prepare a list of pros and cons of allowing this to move
13 forward and also to look at what would have to be changed in the Development Agreement.
14
is Mayor Faust stated with the changes in the marketplace, the City has to remain flexible. He
16 stated he felt with the current condominium saturation in the metro area, cooperative -type
17 housing appears to be the best type of housing the City can provide, which is a sort of hybrid
18 between condominium and apartment living that allows people to participate while having a
19 lower cost of entry. He stated it is important to find a way to make this project viable and this
20 represents a good alternative. He noted the resolution authorizes the commencement of
21 negotiations to amend the Development Agreement, and one of the conditions states that the City
22 will not change anything in the Development Agreement until a threshold of 60% presales is
23 reached. He added it is important that the design remains consistent with the quality and
24 workmanship of the current project.
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26 Councilmember Stille asked if the term "presale" is defined.
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28 Ms. Kvilvang replied that presale is essentially a signed Purchase Agreement.
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30 Councilmember Stille stated this project provides maintenance and the financing behind it
31 requires reserves for items such as a new roof or other general maintenance; these items are all
32 pre- established pursuant to the terms of the HUD program that the developer is using. He
33 indicated he was in favor of this approach and noted this also ties into the City's senior transition
34 goals by providing another option for seniors.
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36 Councilmember Gray concurred and stated it is important for the City to remain flexible given
37 the current economy and housing market.
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39 Councilmember Thuesen stated he was in favor of the proposal and felt it makes the
40 development even more attractive.
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42 Councilmember Roth stated with a HUD loan in a cooperative environment, they are required to
43 hold 4% in reserves for maintenance, etc. He indicated it was his understanding that this reserve
44 money is held by a third party so that the cooperative cannot use the money for something not
45 approved by HUD.
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City Council Regular Meeting Minutes
April 8, 2008
Page 5
Ms. Kvilvang stated this is correct.
3 Councilmember Roth asked if there is a time restriction on reaching the 60% threshold.
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5 Ms. Kvilvang replied that HUD defines "presale" as a purchase agreement with a deposit of
6 earnest money. It was her opinion that HUD likely does not define the amount of time required
7 to meet the threshold, and added it is likely the developer will be able to determine relatively
8 quickly whether there is interest in the project.
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10 Councilmember Roth stated it was his understanding that there are two types of cooperative
11 housing, i.e., limited market and market rate, and asked for clarification on the advantages and
12 disadvantages of both types, as well as what was used to make a decision on the City getting a
13 limited market cooperative.
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15 Ms. Kvilvang stated this was the choice of the developer and added that a limited equity
16 cooperative is where they are buying a portion of shares in the project and buying into a master
17 mortgage; the advantage of a limited equity is in keeping the project affordable.
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19 Councilmember Roth stated with a limited market arrangement, a unit's value will only go up a
20 certain amount each year, so over time, it could be viewed as more affordable if the market starts
21 to go up again.
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23 Ms. Kvilvang stated with a limited equity arrangement, if you are going to sell, there is typically
24 a long waiting list and the unit is still sold through the cooperative.
25
26 Councilmember Roth stated from the list provided for a senior product, two of the three were
27 market rate cooperatives as opposed to limited market. He indicated that in changing the
28 Development Agreement, the City is going to have a lower tax base than if condominiums were
29 in place. He stated over time, with a limited market, that tax base could be somewhat arbitrarily
30 lower than what a market rate cooperative could be, based on the assumption that over time, the
31 value of the property will increase. He asked why the limited market arrangement was decided
32 upon instead of the market rate, and expressed concern that the City may be giving up a higher
33 taxable unit overall. He stated it was his understanding that the City approved this project in
34 order to enhance the community and increase the tax base, and questioned whether the City
35 should give consideration to a market rate arrangement.
36
37 Mayor Faust stated when you do market studies, you look at your target audience, and if you
38 have a market rate versus a limited market arrangement, you end up with higher costs, higher
39 entry fees, and a higher down payment; as a result, from an affordability standpoint, you get
40 more with a limited market arrangement. He added the Development Agreement is not being
41 changed this evening and the resolution only authorizes the commencement of negotiations.
42
43 Darrell Gemar, Pratt Ordway, representing the developer, appeared before the City Council and
44 stated they looked at both limited market and market rate arrangements and with the limited
45 equity, it is more affordable and there is more of a market right now for limited equity
46 arrangements. He stated they are still evaluating both types of arrangements but are leaning
City Council Regular Meeting Minutes
April 8, 2008
Page 6
1 towards the limited equity. He added they intend to hold community meetings to ask residents
2 for their input and to invite anyone interested in learning more about cooperatives, similar to the
3 meetings held when the condominium project began.
4
5 Motion by Councilmember Gray, seconded by Councilmember Stille, to adopt Resolution 08-
6 028; Relating to the Seventh Amendment to a Redevelopment Agreement by and among the City
7 of St. Anthony, the Housing and Redevelopment Authority of the City of St. Anthony and
8 Apache Redevelopment, LLC, dated December 19, 2003.
10 Motion carried unanimously.
11
12 B. Ordinance 08 -001; Fire Code Ordinance. (Final Reading).
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14 Fire Chief Malenick stated the State Fire Code is in effect throughout the state, but the State Fire
15 Marshal strongly encouraged that each jurisdiction formally adopt the Minnesota State Fire Code
16 (MSFC) and is consistent with the intent to establish minimum uniform requirements for
17 Minnesota and St. Anthony in order to be consistent with Minnesota laws and rules, as well as to
18 address fire safety concerns that are specific to St. Anthony. He added the intent is to provide an
19 up -to -date code that will achieve a reasonable degree of safety to life and property.
20
21 Mayor Faust noted that the last page of the ordinance provides that the ordinance changes shall
22 be in full force and effect upon passage by the City and publication of the ordinance or a
23 summary in the City's official newspaper. He stated that the City will publish only a summary in
24 the newspaper and the full text of the ordinance will be available on the City's website or at City
25 Hall.
26
27 Motion by Councilmember Roth, seconded by Councilmember Gray, to approve Third and Final
28 Reading and Adopt Ordinance 08 -001; Fire Code Ordinance.
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30 Motion carried unanimously.
31
32 C. Ordinance 08 -002; Sign Ordinance (Second Reading).
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34 Assistant City Manager Moore -Sykes stated this is a Second Reading of the proposed Sign
35 Ordinance. She stated based on Council's direction at the First Reading, staff has made
36 modifications to the wording at Section 1400.08, Subd. 7, to include language that allows for an
37 unlimited number and size of non - commercial speech signs to be posted during even year
38 elections. She stated that staff also discovered that a similar subdivision regarding non-
39 commercial speech is contained at Section 1400.06, Subd. 8, and this subdivision is proposed to
40 be removed in favor of Section 1400.08, Subd. 7.
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42 Motion by Councilmember Stille, seconded by Councilmember Thucsen, to approve the Second
43 Reading of Ordinance 08 -002; Sign Ordinance.
44
45 Motion carried unanimously.
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City Council Regular Meeting Minutes
April 8, 2008
Page 7
D. Ordinance 08 -003, Housing Code Ordinance (Second Reading).
3 Fire Chief Malenick presented proposed changes to current City ordinances as they pertain to
4 property maintenance and stated of particular concern was how the current code addressed rental
5 property and inspections. He stated that the ordinance includes the adoption of the International
6 Property Maintenance Code as an enforceable document as it pertains to St. Anthony rental
7 property. He explained at the March 25, 2008 Council meeting, discussion centered on the
8 inclusion of non -owner occupied homes that are not rented into the licensing requirements; the
9 City Attorney has provided an opinion on the issue and it was subsequently agreed to modify the
10 definition of Rental Unit to describe any dwelling that is not owner occupied. He stated staff is
11 recommending the creation of a Division of Property Maintenance under the direction of the Fire
12 Department, with the hiring of one additional part time Deputy Code Official to conduct annual
13 rental property inspections. He indicated that funding for this new division could be achieved
14 through a restructuring of rental property licensing.
15
16 City Attorney Lindgren presented proposed language to be added regarding the definition of
17 Rental Unit to include property that is occupied by someone other than the owner for a specified
18 period of time. He stated if the Council wants to include this type of restriction, it can be
19 accomplished by adding Subd. 22 to the Definitions and then make a policy decision as to the
20 length of time to include in this subdivision.
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22 Fire Chief Malenick stated the remaining changes to the ordinance stand as at the First Reading.
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24 Councilmember Gray asked if there are other communities that have included this definition in
25 their housing codes.
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27 Fire Chief Malenick replied he was not aware of any.
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29 City Attorney Lindgren stated he did not believe this was a common restriction, but would not be
30 surprised if the restriction existed.
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32 Councilmember Gray expressed concern with respect to the non -owner occupied restriction and
33 stated it appears to be a little too restrictive when there are other means available for dealing with
34 problems.
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36 Councilmember Thuesen stated he was in favor of adding this restriction and putting a six month
37 time period in the ordinance. He stated he agreed that it is restrictive, but felt with the ever -
38 changing environment, the City needs to do its best to keep its properties in compliance and this
39 will provide the City with the ability to deal with problem properties.
40
41 Councilmember Roth stated he was in agreement with Councilmember Roth's comments and
42 added he felt there are other means available for dealing with problem properties. He stated he
43 was not sure this accomplishes anything since there is no exchange of money for rent and
44 someone could charge a penny for a year's rent.
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City Council Regular Meeting Minutes
April 8, 2008
Page 8
City Attorney Lindgren stated the intention would be that even if you pay a dollar for rent, it
would be subject to the fee structure.
Mayor Faust stated he was in favor of the six month time period.
Councilmember Stille stated he is a proponent of protecting the City's housing stock and this
represents another tool the City can use to make sure that happens.
Motion by Councilmember Thuesen, seconded by Councilmember Gray, to approve the Second
Reading of Ordinance 08 -003; Housing Code Ordinance.
Motion carried unanimously.
E. Ordinance 08 -004; Chapter 6 - Fees, Rates, and Charges (First Reading).
City Manager Mornson stated in conjunction with the Housing Code Ordinance, there are
amendments that need to be made to Chapter 6 — Fees, Rates and Charges. He explained the
current fees are $7.00 per dwelling unit and staff is proposing a base fee of $150 plus $10 per
unit for three or more units. He presented the proposed budget based on the additional fees as
well as the budget for the new Division of Property Maintenance under the direction of the Fire
Department.
Mayor Faust asked if the proposed fees are intended to cover the cost of inspection only.
City Manager Momson replied in the affirmative.
Motion by Councilmember Stille, seconded by Councilmember Thuesen, to approve the First
Reading of Ordinance 08 -004; Chapter 6 - Fees, Rates, and Charges.
Motion carried unanimously.
VIL REPORTS FROM CITY MANAGER AND COUNCIL
City Manager Momson expressed his thanks to Fire Chief Malenick and Assistant City Manager
Moore -Sykes for their work on the revisions to the ordinances. He noted the third reading will
be on April 22, 2008. He stated that if the Council chooses to include a summary version of the
ordinance to be published in the City's official newspaper (versus the entire text of the
ordinance), it will require a 4/5 vote.
City Manager Momson reported that the League of Minnesota Cities will hold its meeting in
June and last year, the City received an honorable mention for the City of Excellence Award. He
stated the City has again been nominated for the award for the police contract with Lauderdale
and Falcon Heights.
City Manager Mornson stated on March 31, the City hosted the Silver Lake Road Open House.
In addition, on April 4, the City helped with a Senior Health Fair in conjunction with the
City Council Regular Meeting Minutes
April 8, 2008
Page 9
1 Kiwanis. He stated the Police, Fire, and Public Works Departments participated in the event and
2 there were approximately 250 -300 people that attended the fair. He stated on April 5, the St.
3 Anthony Village Historical Society held an open house where approximately 150 people
4 attended.
6 City Manager Mornson reported that a grant application was recently submitted for a fire truck
7 through the Firefighter's Grant program.
9 City Manager Mornson stated at the next Council meeting, the Council will be asked to
10 recognize two police officers involved in the recent TCF Bank robbery and resulting chase. He
11 noted that he recently received a letter from the Plymouth Police Chief expressing their
12 appreciation for the City's cooperation.
13
14 City Manager Mornson stated the City was recently recognized by the Government Finance
15 Officers organization and the City has now been certified for government financial planning.
16
17 Mayor Faust expressed his appreciation to City Manager Mornson for his involvement with the
18 Junior Achievement program.
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20 Councilmember Thuesen stated he and Councilmember Gray have attended the Citizens
21 Academy and stated he is very impressed with how well organized it is and the program is an
22 asset to the community. He also congratulated City Manager Mornson on his work with the
23 Junior Achievement program and stated he hopes they invite him to work with the children again
24 next year.
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26 Councilmember Roth stated he recently met with Kate Andrews of Northwest Youth and Family
27 Services and stated he will attend their board meeting on April 10`h. He stated that Northwest
28 Youth and Family Services will be holding their annual leadership lunch and fundraiser on May
29 7, 2008 from 11:30 -1:00 p.m. at Midland Hills.
30
31 Councilmember Roth stated he attended a First Community Services meeting last week and
32 stated they are going to be naming a replacement for Kathy Knapp who is retiring. He indicated
33 there was a lot of discussion about the upcoming school referendum and there appears to be
34 support for it in spite of the cost.
35
36 Councilmember Stille expressed his thanks to Assistant City Manager Moore -Sykes and Barry
37 Tedland of the St. Anthony Village Historical Society for their efforts in organizing the
38 Historical Society open house on April 5.
39 Mayor Faust stated there was a good turnout for the March 31 Silver Lake Road open house. He
40 stated it looks like the road will be shut down on May I" and drivers will be able to cross at 291h,
41 33`d, and 37`h Avenues. He stated the City's website has more information regarding the road
42 closure, including bus route information. He indicated the project should be completed in
43 November and expressed his thanks to the Council and staff for their efforts on the project.
44
45 Mayor Faust stated the Historical Society meets on the third Wednesday of every month at 2:00
46 p.m. and encouraged anybody who is interested to attend a meeting. He indicated there are a lot
City Council Regular Meeting Minutes
April 8, 2008
Page 10
of people working gratis for the Historical Society and their work is important to preserving the
history of the community.
4 Mayor Faust stated that the City of Excellence Award has a $1,000 award associated with it, and
5 if the City wins the award this year, he suggested the money be applied toward the Citizens
6 Academy.
VIII. COMMUNITY FORUM.
10 Mayor Faust invited residents to come forward at this time and address the Council on items that
11 are not on the regular agenda.
12
13 Hearing none, Mayor Faust moved forward with the agenda.
14
15 IX. INFORMATION AND ANNOUNCEMENTS.
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17 Councilmember Thuesen announced the St. Anthony/New Brighton Senior Citizen's Advisory
18 Council will be hosting a big band concert on Monday, April 14`h, from 1:30 to 3:00 p.m. at the
19 St. Anthony High School auditorium. He stated tickets are $4 in advance, $5 day of show and are
20 available for purchase at City Hall. Residents may call 706 -1166 for information.
21
22 Councilmember Stille announced that due to the snowstorm on March 31, Dr. David Walsh was
23 not able to speak as scheduled. He stated Dr. Walsh is a psychologist with the Family Services
24 Collaborative and will speak on Monday, April 14`h, on "Saying No to Children, Why Kids Need
25 it, and Why Parents Need to Say it."
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27 City Manager Mornson announced the City's annual clean-up day is Saturday, May 3, from 9:00
28 a.m. to 1:00 p.m. He stated based on citizen input, there will now be a shredder available to shred
29 documents. He stated the event is free to the public.
30
31 X. ADJOURNMENT.
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33 Mayor Faust adjourned the City Council meeting at 8:38 p.m.
34
35 Respectfully submitted,
36 Barbara Hughes
37 Timesaver Off Site Secretarial, Inc.
38
39
40 ayor
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42 ATTEST:
43 City Clerk