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2010-10-19 City Council minutesPursuant to due call and Heights, Minnesota was Heights, Minnesota. CALL TO ORDER October 19, 2010 Page 1 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Tuesday, October 19, 2010 notice thereof, the regular meeting of the City Council, City of Mendota held at 7:00 p.m. at City Hall, 1101 Victoria Curve, Mendota PLEDGE OF ALLEGIANCE AGENDA ADOPTION Ayes: 4 Nays: 0 APPROVAL OF MINUTES Ayes: 4 Nays: 0 CONSENT CALENDAR Acting Mayor Vitelli called the meeting to order at 7:00 p.m. The following members were present: Councilmembers Duggan, Krebsbach, and Schneeman. Absent and excused was Mayor Huber. Council, the audience and staff recited the Pledge of Allegiance. Councilmember Duggan moved adoption of the agenda as presented. Councilmember Schneeman seconded the motion. Councilmember Schneeman moved approval of the minutes of the regular meeting held on October 5, 2010, as corrected. Councilmember Krebsbach seconded the motion. Councilmember Schneeman moved approval of the consent calendar as presented, pulling items 6h, 6k, and 6m for further discussion, and authorization for execution of any necessary documents contained therein. a. Acknowledgement of the NDC4 Meeting Minutes and Agenda b. Acknowledgement of the Minutes from the October 12, 2010 Parks and Recreation Meeting c. Acknowledgement of the September 2010 Fire Department Report d. Acknowledgement of the September 2010 Treasurer's Report e. Acknowledgement of the September 2010 Par 3 Update Ayes: 4 Nays: 0 2010 CDBG AGREEMENT October 19, 2010 Page 2 f. Authorization to Purchase Fertilizer g. Authorization to Provide Surveying Services for Wagon Wheel Trail Neighborhood Improvements h. Approval of 2010 Community Development Block Grant Subrecipient Agreement i. Approval of Insurance Agent of Record j. Approval of Insurance Renewal k. Adoption of Resolution No. 10 -84: "RESOLUTION ADOPTING A FUND BALANCE POLICY" 1. Adoption of Resolution No. 10 -85: "RESOLUTION AUTHORIZATION IN SUPPORT OF THE MINNESOTA STATE PATROL GRANT PROGRAMS" m. Adoption of Resolution No. 10 -86: "RESOLUTION SUPPORTING PROJECTS LISTED IN THE DRAFT 2011 -2015 DAKOTA COUNTY CAPITAL IMPROVEMENT PLAN" n. Adoption of Resolution No. 10 -87: "RESOLUTION ORDERING PREPARATION OF FEASIBILITY REPORT FOR THE KNOLLWOOD LANE NEIGHBORHOOD REHABILITATION PROJECT" o. Approval of Contractors List, dated October 14, 2010 p. Approval of the List of Claims, dated October 19, 2010, totaling $183,018.82 Councilmember Duggan seconded the motion. Councilmember Duggan asked to comment on item 6h and whether this agreement is for one year only and what the money is used for? Assistant to the City Administrator Sedlacek explained the city typically receives these grant dollars every year. The Dakota County Community Development Agency (CDA) realized it was doing the same agreement every year so it is proposing one agreement until the end of 2013, the end of the federal fiscal term. He referenced to exhibit A and explained that it would be amended each year. This year, the city would receive $29,300, $23,300 for housing rehabilitation and $6,000 for sanitary sewer relocation at the Mendota Heights Senior Housing project. Councilmember Schneeman stated the city applies for these grants each year and this is a good sized grant. Mr. October 19, 2010 Page 3 Sedlacek stated this amount is on par with what has been received in past years. Councilmember Krebsbach asked what pool of money is available? Mr. Sedlacek explained that about $1 million is awarded in relation to population. Councilmember Krebsbach asked if the housing revitalization is income qualified? Mr. Sedlacek answered in the affirmative. Councilmember Krebsbach asked if that amount can increase? Mr. Sedlacek explained an increase could occur because in future years the city can address if it will promote a program or qualifying project. Councilmember Duggan asked where the agreement indicates this program will give the city money each of the three years of the contract term? Mr. Sedlacek explained the CDA proposed this three -year grant agreement and going forward the city will make the application and when the grant is awarded, exhibit A will be amended. Councilmember Duggan asked if the CDA and other government bodies will assure the additional dollars for the successive years since it is not stated in this agreement? Mr. Sedlacek explained that there is no guarantee the city will receive grant funds in future years. Councilmember Schneeman reviewed past practice for a Councilmember to attend the meeting in South Saint Paul to ask for the grant money. Mr. Sedlacek stated he attends those meetings. He explained that the CDA is getting more efficient, aligning its priorities with national funding, and offers guidance on what projects are and are not eligible. Councilmember Duggan moved approval of the 2010 Community Development Block Grant Subrecipient Agreement and directed staff to send a letter to the appropriate parties regarding the impact of accepting this agreement on the two successive years. Councilmember Krebsbach seconded the motion. Councilmember Duggan asked to comment on item 6k and noted that the resolution indicates that GASB 54 will be effective December 31, 2011. He asked if that should be 2010? Finance Director Schabacker advised that GASB 54 October 19, 2010 Page 4 will be effective December 31, 2011, but early implementation was recommended by the auditor so this fund balance policy had been prepared. Councilmember Duggan moved adoption of Resolution No. 10 -84: "RESOLUTION ADOPTING A FUND BALANCE POLICY." Councilmember Schneeman seconded the motion. Councilmember Krebsbach asked to comment on item 6m and suggested staff provide information to residents along Delaware and Marie Avenues since this improvement will affect them. Public Works Director /City Engineer Mazzitello reviewed that every year, Dakota County updates their capital improvement program (CIP) and in association with that approval by their county board, they ask constituent cities to approve a resolution of support for their CIP. Mr. Mazzitello explained that Dakota County is responsible for the financing, plans, and construction of the Delaware project. He displayed a map to identify the project area from the Highway 110 frontage road on the south, to just north of Marie Avenue, and the intent to increase Delaware Avenue to three lanes with a center turn lane. He described the location of the proposed left and right turn lanes. Councilmember Krebsbach asked how many Mendota Heights residents will be impacted? Mr. Mazzitello stated there are three impacted residents, all on the west side of Delaware Avenue immediately north of Marie Avenue. He explained that Dakota County did the preliminary plans, held the public hearings, are in right -of -way negotiations with property owners, and expect advertisement for bids to begin in the spring of 2011. That public meeting was held at Henry Sibley High School the last week of October 2009. Councilmember Krebsbach asked if there was a plan for a roundabout? Mr. Mazzitello stated there was never a plan for a roundabout at Marie and Delaware Avenues and there will not be a aroundabout. Councilmember Krebsbach asked if other changes to Delaware Avenue would be part of a different project? Mr. Ayes: 4 Nays: 0 PUBLIC COMMENTS PUBLIC HEARING 2010 STREET PROJECT ASSESSMENT HEARING October 19, 2010 Page 5 Mazzitello stated that is correct and the curbing will end about 450 feet north of Marie Avenue. Following construction, sod and plantings will be replaced as needed. A new trail will connect to the Highway 110 frontage road adjacent to the school district property. Councilmember Duggan stated he attended the meeting at Henry Sibley High School since one -half of the project is in Mendota Heights. He felt the proposed turn lanes are a good plan and complimented Dakota County staff who made the presentation to the community. Mr. Mazzitello stated if anyone wants additional information contact the Dakota County engineers, he can provide contact information. He stated that he also attended the meetings along with Councilmember Duggan, Mr. Ruzek, and engineers from Dakota County and West St. Paul. Councilmember Schneeman stated this is a welcomed improvement and she is pleased it is finally coming to fruition. Councilmember Duggan moved adoption of Resolution No. 10 -84: "RESOLUTION SUPPORTING PROJECTS LISTED IN THE DRAFT 2011 -2015 DAKOTA COUNTY CAPITAL IMPROVEMENT PLAN." Councilmember Krebsbach seconded the motion. There were none. Assistant City Engineer Ruzek stated the 2010 street reconstruction and rehabilitation projects included reconstructing Diego Lane, Esther Lane, John Street, Miriam Street, Simard Street, Spring Street, Valley Lane, and View Lane. The project also included rehabilitating Butler Avenue, Fremont Avenue, Garden Lane, Hiawatha Avenue, Junction Lane, and Kirchner Avenue. The total project cost is $1,021,688.11 and the amount to be assessed is $575,852. The City follows the state statute 429 process to assess a portion of the cost back to benefiting property owners. October 19, 2010 Page 6 Mr. Ruzek displayed a map of the neighborhood that identified the three assessment areas: street rehabilitation of $1,435.41; full street reconstruction of $5,768.74; and curb and gutter for an additional $743.25. The project is substantially completed with the exception of the final wear course on Simard, Spring and Johns Streets due to deep utility installation with those streets. It was noted that the property owner at 544 Miriam Street replaced his driveway so that assessment would be adjusted by $306.29 to account for the portion of driveway the city would have replaced. He advised that one letter of objection to the method of the assessment and preferring a front footage street assessment instead of a unit assessment had been received. Acting Mayor Vitelli opened the public hearing at 7:27 p.m. and asked for public comments William Herzog, 571 West Butler, asked who pays the cost of the assessment for improvement to the parks for the path and parking lot? Mr. Ruzek stated the trail end and parking lot improvements reused the gravel and the contractor paved the parking lot. With the trail overlay, that cost was included in the total project cost and divided into all of the properties being assessed. Mr. Herzog asked what was done with trails in other areas of the city? Mr. Ruzek explained that with some trails, the city used a referendum to pay for trail improvements. Mr. Herzog noted that other people use these trails and asked why only this neighborhood is paying for the improvement cost? Mr. Ruzek explained that most of the benefiting properties are within this neighborhood and the city is paying for one -half of the cost. Charles Elliott, 543 John Street, stated he received the letter saying every benefiting property is proposed to be assessed for these improvements. However, he noted properties that are not being assessed, which means each assessment is $1,000 higher. He stated he got a few yards of blacktop while other driveways got 30 to 40 yards of concrete. Mr. Ruzek stated those costs were included in the total project cost. October 19, 2010 Page 7 Mr. Elliott asked why he did not get the choice to have a concrete apron instead of blacktop? Mr. Ruzek explained that when the project was originally presented, a feasibility report was developed and approved by the council that driveways would be replaced in kind. Mr. Elliott stated it would be more expensive to put in concrete than the blacktop he received but he is expected to split the cost for those who received concrete driveway aprons. Mr. Ruzek stated that is correct. Mr. Elliott asked what is the frontage for reconstruction and curb and gutter cost? Mr. Ruzek stated a front footage assessment was not calculated because in 1992 the city adopted a policy that if all properties are zoned the same, the unit assessment was the preferred assessment. The total cost for the curb was included in the project cost and divided by the benefiting properties. Mr. Elliott stated he does not think this is an equitable way to do it because all the home values are different. He noted that Delaware Avenue used a front footage assessment of about $36 per foot, and he is paying well over $100 a foot which he does not think is fair. Councilmember Duggan stated this discussion has been raised five times in the eight years he has served on the city council and he has listened and learned. He found it is not the size of the property but the fact that all use the roads so the unit assessment was adopted in 1992 and the city council has not changed it. Mr. Elliott noted the city council used a front footage assessment on Delaware Avenue. Mr. Ruzek explained that West St. Paul was the lead on that project and that was their method. Mr. Elliott asked whether a house valued four times the value of his property and with a longer driveway should pay the same assessment? Acting Mayor Vitelli stated the council has heard the position of Mr. Elliott that the unit assessment is unfair and the city should consider a front footage assessment or some other method. Mr. Elliott stated that is correct. He asked councilmember Duggan to respond to the e -mail he had sent regarding his October 19, 2010 Page 8 concern for safety and presented a letter appealing the assessment. Ms. Wegleitner, 568 Spring Street, asked if they will put down another layer of asphalt? Mr. Ruzek stated that will be done next June and the cost is included in the assessment. Carolyn Shada, 1054 View Lane, agreed with the front footage assessment even though it has been done by the unit assessment for 18 years. She also wondered if street improvements raise the level of value to the properties. Councilmember Schneeman answered in the affirmative. Ms. Shada suggested that the more frontage you have, the more your property value would increase. She asked about the 6% interest rate to be charged on the assessment when the city is getting the money for 3 %? Ms. Schabacker, Financial Director, explained the bonds sold at 3 %; however, the city typically sets the assessment interest rate at 6 %. Ms. Shada asked if the city is taking a $30,000 hedge? Ms. Schabacker stated the amount paid on the bonds is not typically passed on and the additional percentage goes to help defray project cost. This has been done in the past. Acting Mayor Vitelli noted the option is to pay the assessment prior to certification to taxes for collection. He noted that five years ago 6% was a good deal and may be again in several years. Ms. Schabacker noted it also covers costs to sell the bonds and administrative costs to process the bonds. Ms. Shada stated it seems excessive. Acting Mayor Vitelli recognized that Ms. Shada does not like the residents being charged 6% on the assessment when the city sold the bonds for 3 %. Ms. Shada stated she mentioned at the beginning of the project she hoped the city would get a contract for all trash haulers to lower the number of trucks using the streets. She had submitted information about wear and tear on the streets caused by trash haulers. Ms. Shada stated the project would have been easier if residents had received a weekly update so they were aware of things like necessary project delays. October 19, 2010 Page 9 Councilmember Duggan stated at a previous city council meeting a contract garbage hauler was suggested and Councilmember Vitelli had made an excellent suggestion that those people who prefer to have a single delivery pick up trash, they should get together and work it out. Ms. Shada stated she thinks the rates would be lower if the city contracted the service. Shawn Finnegan, 991 Diego Lane, asked what he could do to affect a change to get back to a front footage assessment instead of the unit assessment? City Adminstrator McKnight stated the process would start with residents requesting the city council to look at the issue and if enough members are interested they would discuss that policy at a work session. Acting Mayor Vitelli stated the work session is a public meeting and interested residents could be invited to attend and voice their comments. Mr. McKnight stated the meeting would be advertised on the city's website so any interested resident could attend. There being no questions or comments, Councilmember Duggan moved to close the public hearing at 7:45 p.m. Councilmember Schneeman seconded the motion. Councilmember Krebsbach noted there have been higher assessments with other street projects. Mr. Mazzitello explained the assessed value varies from project to project and with larger subdivisions and larger lots, the assessments for reconstruction and curb and gutter can be as high as $9,000 per property. Since this neighborhood had smaller properties the assessment was kept lower than typically assessed. He noted that with front footage assessments corner lots get assessed for both sides instead of just one. The unit assessment is based on the street your driveway exits to and in the case of two driveways, the street address is used. Councilmember Krebsbach noted if lots are larger then the assessment is higher and since there are more houses in this project, the assessment is less. Councilmember Krebsbach asked about the interest rate being charged? Ms. Schabacker stated most cities have an up charge between Ayes: 4 Nays: 0 SENIOR CITIZEN ASSESSMENT DEFERMENT REQUEST October 19, 2010 Page 10 what the bonds are sold at and the assessment to cover the administrative fees to process the bonds. Councilmember Krebsbach asked if the city gets the benefit of a lower interest rate due to the city's bond rating? Ms. Schabacker answered in the affirmative. Councilmember Krebsbach noted that the city gets the benefit of a lower interest rate if they are better stewards of the city's resource. Ms. Schabacker explained that residents now have 30 days to prepay the assessment with no interest charged. After 30 days the assessment will be certified to the property taxes. Councilmember Duggan asked if all residents will receive a notice about that opportunity? Ms. Schabacker stated residents have already received the letter informing they can prepay the assessment within 30 days and the amount owed. Councilmember Schneeman stated with all street projects the council hears the same conversation because it is expensive. But, when her streets were done in Cherry Hills, not one person said they were sorry and some improved their houses. Councilmember Schneeman moved adoption of Resolution No. 10 -88, "RESOLUTION ADOPTING AND CONFIRMING ASSESSMENT FOR THE 2010 STREET RECONSTRUCTION AND REHABILITATION PROJECT (PROJECT #200910)." Councilmember Duggan seconded the motion. Acting Mayor Vitelli noted the city had received a request from Anna Blechinger, 605 West Butler Avenue, for a deferment of the assessment for the 2010 street rehabilitation project against her property. He explained that Ms. Blechinger's husband just passed away last year, she is 81 years old, and living on a fixed income. Mr. Mazzitello stated the city has three options for considering a deferral for unimproved properties: a senior deferral; a disability deferral; and, a green acres held as Ayes: 4 Nays: 0 TRAFFIC SAFETY COMMITTEE RECOMMMENDATION October 19, 2010 Page 11 open space. This request qualified for senior deferral and the amount being requested is $1,435.41. Councilmember Duggan moved adoption of Resolution No. 10 -89, "RESOLUTION DEFERRING THE MAKING OF ASSESSMENT AS TO THE PROPERTY LOCATED AT 605 WEST BUTLER AVENUE (IMPROVEMENT NO. 2010 -01)." Councilmember Schneeman seconded the motion. Acting Mayor Vitelli explained who serves on the Traffic Safety Committee (TSC) to consider citizen requests related to traffic safety and remove the onus on the Police Chief. Mr. Mazzitello presented the recommendations of the October 4, 2010, TSC meeting as follows: A request from Bruce Becker to consider the speed on Market Street from Highway 110 to Dodd Road. Mr. Becker's main concerns were traffic diverting off Highway 110 at the ramp and turning at Dodd Road to avoid the stop signal at Highway 110 and Dodd Road. The Police Department analyzed the area over a 14 day period and issued one citation during this period for failure to obey a stop sign. The TSC recommends no action be taken on this request and to continue monitoring the area. A request from Lynn Daleiden of 646 First Avenue regarding speed of traffic and requesting a stop sign at Laura. Mr. Mazzitello explained that since First Avenue was reconstructed, the number of speed complaints have drastically gone down. In part, because the project narrowed the road width at intersections to slow the speed of traffic. This is the first complaint received since the reconstruction. The Police Department has spent time monitoring this area and since the number of complaints was reduced, the TSC recommends no action and to continue monitoring the area. A series of requests came from Councilmember Krebsbach regarding the Rogers Lake Neighborhood. The first is a pedestrian trail along Lake Drive. He referenced the cost estimates contained in the report and advised that a pedestrian trail on the north side would cost at or just under October 19, 2010 Page 12 $100,000. Councilmember Krebsbach noted that cost is to construct a trail to Mendota Heights Road but she had not intended it to go beyond St. Thomas. She explained that she had brought forward resident requests that came up during the discussion on the roundabout. Mr. Mazzitello stated if the trail is constructed on the south side of Lake Drive it would cost three to four times more due to the additional earth work that would be required. As to the need for the trail, after discussion the TSC recommended referring this issue to Dakota County for inclusion in the County -wide Trail Gap Study that is currently on- going. He advised that this matter was referred to Dakota County and is currently under review. A request for no parking on Lake Drive for the area on the north end of the St. Thomas Academy. Councilmember Krebsbach stated she had requested this be considered. Mr. Mazzitello explained that currently visitors to St. Thomas Academy park on the west side of Lake Drive from Swan Drive to the main entrance of St. Thomas Academy. Students cross between the two campuses on the north end between the parked cars, which creates a safety hazard. The TSC recommends implementing a 20 -foot no parking area on either side of the pedestrian crosswalk in accordance with the city code, Title 6, Chapter 2, Paragraph 1, including painting the curb yellow and posting no parking signs. A request for striped pedestrian crossing on Lake Drive between Visitation School and St. Thomas Academy. He stated since the student crossing is considered to be a hazard by the TSC, it recommends painting a pedestrian crosswalk and installing crosswalk signs across Lake Drive at the north end of the St. Thomas Academy and Visitation School campuses where the majority of pedestrian crossings currently take place. A request for a no left turn from Lake Drive onto Swan Drive, Rogers Avenue, or Kressin Avenue for traffic coming from St. Thomas Academy. He explained that since construction of the roundabout, traffic has increased and become a concern for residents of the Rogers Lake neighborhood. However, the TSC recommends against this October 19, 2010 Page 13 action as it would make the left turning movement illegal for all vehicles, including those of the Rogers Lake neighborhood residents. If implemented, this measure would fundamentally alter traffic pattern for the residents and increase traffic on other east -west streets in the neighborhood. Councilmember Krebsbach stated that is what would happen if Lake Drive were a cul -de -sac, the loss of ability to turn left from Lake Drive to Swan Drive, Rogers Avenue or Kressin Avenue. A request for speed bumps on Lake Drive; however, due to the issues with snow plowing and maintenance, the TSC recommends no speed bumps within any city right -of -way. Councilmember Krebsbach stated she considered this to be a last resort and had forwarded the request based on comments made by residents. A request for no left turn from Dodd Road to Lake Drive. The Police Chief presented accident data and it was found there were only three accidents at this intersection, none resulting in substantial injury. Coupled with that and looking at traffic movements if this left turn movement was baring, it would simply re -route Lake Drive traffic coming from Dodd Road to Bluebill Drive and Wagon Wheel Trail to access St. Thomas Academy, further adding to the Rogers Lake neighborhood thru traffic. The TSC recommends against asking Mn/DOT to prohibit left turns from northbound Dodd Road to westbound Lake Drive. Councilmember Duggan asked if there is enough right -of- way to widen the traffic lane to allow a car to pass safely on the right if a car is waiting to make a left hand turn? Mr. Mazzitello stated he can ask the area engineer if there is sufficient right -of -way for a bypass lane. Mr. Mazzitello stated the TSC considered the impact to Wagon Wheel Trail as a result of the Mendota Heights Road/Visitation Drive roundabout. He explained that drivers are creatures of habit and get used to the route they normally take so when Mendota Heights Road was closed for the project a number of vehicles used Wagon Wheel Trail to get from Dodd Road to Lexington Avenue. Now that the roundabout is open, those numbers are starting to October 19, 2010 Page 14 fall. As discussed previously, next year Wagon Wheel Trail will be reconstructed which will reroute traffic from Wagon Wheel. Once that project is completed, staff will have a better idea of the new traffic patterns. He advised that the TSC recommended against conducting a traffic study at this time due to the pending reconstruction of Wagon Wheel Trail. Fire Chief Maczko favored a traffic study at this time citing the small expenditure for a traffic study being worthwhile to officially document and compare traffic volumes. Councilmember Duggan stated he thought the roundabout consideration included a traffic study before and another after the project so a comparison could be made of traffic patterns. Mr. McKnight advised that traffic counts were conducted this spring and will be conducted again next spring to determine the impact of the roundabout. A request from residents along Warrior Drive for no parking along the east side of Warrior Drive due to issues with Henry Sibley High School parking. Currently the western side of Warrior Drive is signed for no parking at the request of the residents. At issue is student parking for the high school because the district charges a parking fee to use the schools parking lot. The intent of the parking lot fee was to encourage students to ride the bus. The TSC understands the concern but recommends no action on this item as it is believed that further restricting parking on Warrior Drive will move school generated traffic to park in the adjoining cul -de -sacs. It is believed this issue could be resolved by speaking with the school district. Councilmember Duggan stated he was contacted about this matter and thinks there should be a dialogue with the school district to ask them to reconsider their parking lot fee. He felt there were ways for the school district to provide excess parking. He stated another suggestion would be to consider signage on the east side indicating student parking only 7:00 a.m. to 3:00 p.m on school days. A request by the Somerset Elementary PTA Executive Committee to make pedestrian safety improvements on Dodd Road at Somerset Elementary School. The requestors prefer a reduced speed limit on Dodd Road in the vicinity of the crosswalk. However, because Dodd Road is a state October 19, 2010 Page 15 highway, the best the city can do is to make the request of Mn/DOT. Since it is a state highway, the TSC recommend the city work directly with the Mn /DOT engineer and PTA to determine what is and is not possible for increasing pedestrian safety at the school. If a solution is arrived at that requires a council action, TSC will bring that request forward. Mr. Mazzitello advised that staff will meet with Mn/DOT engineers at Somerset Elementary School to look at the pedestrian crossing during the morning and afternoon sessions. Staff will keep the council apprised of that matter. Councilmember Schneeman moved acceptance of the October 4, 2010, TSC report. Councilmember Krebsbach seconded the motion. City Administrator McKnight reviewed that the council wanted additional information on the proposed parking lot at Pilot Knob. He explained that both phases of the Pilot Knob Natural Resources Management Plan called for the construction of a parking lot near the intersection of Pilot Knob Road and Acacia Boulevard. The phase one plan from October 2005 called for a four -car parking lot, at that time, at a cost of $6,600 to $7,766. The phase two plan from November 2007 called for a six -car parking lot at an estimated cost of $15,400 to $18,400. This year Great River Greening has requested, as part of the 2011 work at Pilot Knob, that the city include $19,000 in its budget for the creation of a seven - vehicle parking lot. The money for this request is still included in the draft 2011 budget. Councilmember Duggan referenced the estimated construction costs for parking and also interpretative materials. However, tonight the council is being asked to consider only the parking lot, which he supports up to $8,000. Mr. McKnight noted that dollar amount is included in the 2005 cost estimates. Councilmember Duggan asked whether the cost has doubled since 2005? Mr. McKnight stated that is the estimate from Great River Greening. Councilmember Schneeman noted the staff recommendation is for $31,150 and it has been included in the budget. October 19, 2010 Page 16 Councilmember Schneeman moved to budget $31,150 in the 2011 budget for Pilot Knob and direct staff to work with Great River Greening to complete parking lot construction in 2011. Councilmember Duggan stated the discussion is only for the parking lot which is estimated at $15,400 to $18,400. He doubted that the price for the parking lot, in this economy, had doubled since 2005. Councilmember Krebsbach suggested staff be authorized to spend the maximum of $18,400 on the parking lot with the rest of the items considered later. Councilmember Duggan asked if she is suggesting authorizing the highest amount estimated? Councilmember Krebsbach stated it would be at staff s discretion and they can ask about the discrepancy. Acting Mayor Vitelli declared the motion to have failed for lack of a second. Councilmember Duggan moved to budget not to exceed $15,000 in the 2011 budget for Pilot Knob parking lot. Councilmember Krebsbach seconded the motion. Acting Mayor Vitelli stated he supports the motion, thinks it is reasonable, and that the other interpretative items should be presented separately. Mr. McKnight clarified that the only three items included in the 2011 budget are vegetative maintenance, the parking lot, and additional gravel for the paths. Councilmember Duggan reviewed the items listed in the Pilot Knob plan and indicated he is comfortable with the motion for the parking lot. Councilmember Krebsbach asked what is the difference between table five and the original proposal? Mr. McKnight stated staff will break down the costs and bring it back for the council's information. Acting Mayor Vitelli suggested staff ask for additional information on the interpretative markers. Mr. McKnight clarified that the interpretative markers, which Councilmember Duggan referenced, were in the 2005 and 2011 BUDGET — VEHICLES Ayes: 4 Nays: 0 2010 BUDGET — HEALTH INSURANCE 2011 CITY CONTRIBUTION October 19, 2010 Page 17 2007 plans and not being requested in 2011. Mr. McKnight displayed a map and described the work of the volunteers this summer. Mr. McKnight reviewed that the council wanted additional information on the two vehicles that were proposed to be purchased in 2011. The first vehicle would be a department vehicle used by the public works department /parks division at a cost of $57,000. The second vehicle would be shared by engineering and the fire department /fire marshal at a cost of $29,000. Both vehicles would be purchased from general fund reserves and not impact the 2011 tax levy. The 1998 Crown Victoria, 2003 Ford Ranger, and 1994 Plymouth Voyager would be removed from the current fleet. Councilmember Duggan referenced the lower mileage on two of the cars and suggested holding off on making the purchase until after the winter. Mr. McKnight stated the request is to sell three vehicles and replace them with one car at $29,000 and to sell the dump truck and replace it with a one -ton dump truck at $57,000. Councilmember Krebsbach stated she does not want the vehicles purchased simply because staff wants to drive something newer. Mr. McKnight stated that is not the case. Councilmember Schneeman stated staff had done due diligence in this matter so she would support staff s recommendation. Acting Mayor Vitelli stated he has confidence in city staff and would support their recommendation. Councilmember Schneeman moved to add two vehicles to the 2011 budget, to be funded from the general fund balance, and to sell the three used vehicles. Councilmember Krebsbach seconded the motion. Mr. McKnight reviewed that the council wanted additional information on health insurance and the proposed 2011 city contribution. He presented a chart identifying health care costs and a pie chart identifying the type of insurance program used by the city's 46 employees. Mr. McKnight October 19, 2010 Page 18 noted the family regular plan is used by six employees and that is what was used to base the employee's contribution in previous years. The regular plan for single coverage was $570 in 2010 and will be $636 in 2011 for an 11.6% increase. The regular plan for family coverage was $1,576 in 2010 and will be $1,757 in 2011. The health savings plan for single coverage was $427 in 2010 and will be $476 in 2011. The health savings plan for family coverage was $1,179 in 2010 and will be $1,314 in 2011. Typically the city has increased its contribution by 10% and that is assumed in the chart by showing a 2010 contribution of $1,142 and a 2011 contribution of $1,257. Mr. McKnight reviewed the cost difference from the employee's premium payment with the proposed city's contribution. He noted that employees on the regular plan for single coverage would have $572 left over in 2010 and $621 left over in 2011 to pay for other insurance benefits. An employee on the regular plan for family coverage would pay $434 out of pocket in 2010 and $500 in 2011. An employee with the health savings plan for single coverage would have $715 left over in 2010 and $781 left over in 2011 to pay for other insurance benefits. An employee with the health savings plan for family coverage would pay $37 out of pocket in 2010 and $57 in 2011. Councilmember Duggan asked about the regular insurance plan for family coverage that shows an out of pocket cost of $434 in 2010 and $500 in 2011? Mr. McKnight explained that those employees have paid $434 in 2010 and will pay $500 in 2011 because the city's contribution is less than the cost of the premium. Councilmember Krebsbach asked what is the average city contribution? Mr. McKnight stated that in 2010 it was $1,142 and in 2011, if approved, it will be $1,257. Councilmember Krebsbach stated she thinks 10% is a fairly high increase in contribution. Mr. McKnight stated during the budget workshop, the Mayor lead the discussion that the city's contribution was generours. He noted that the city's cost in 2010 for 46 employees was $52,532 per month and in 2011 it will be $57,822 per month, an increase of $5,290. October 19, 2010 Page 19 Councilmember Schneeman noted this is a lot of money. Acting Mayor Vitelli asked if these health insurance premiums are the exact amounts for 2011? Mr. McKnight answered in the affirmative. Acting Mayor Vitelli stated other companies have announced higher rates and lower coverages. Mr. McKnight agreed these are generous contributions but the council made it clear during budget discussions that will be changing after the 2011 budget. Councilmember Krebsbach stated the costs do not seem to be escalating that high and proposed a 9% increase in contribution. She noted that the employee was contributing 40% in 2004, 43% in 2005, 39% in 2006, 42% in 2007 and 2008, and then the employee's contribution percentage started to drop. She stated support for the employee contribution to be at 30 %. Councilmember Krebsbach moved to set the 2011 city contributions for employees at a 9% increase, rather than a 10% increase. Councilmember Schneeman seconded the motion for discussion purposes. Councilmember Schneeman asked what this will do to the overall plan and if the city went out for bids? Ms. Schabacker stated the city currently uses a pool so the health insurance is through Blue Cross/Blue Shield of Minnesota, which helps eliminate peaks in premiums. Mr. McKnight stated a 10% increase would increase the contribution to $1,257 and a 9% increase would be $1,245, or a $12 per month per employee difference. Councilmember Duggan stated he would be happy with what is being presented but knows there was discussion at the workshop that the city's contribution was generous. Acting Mayor Vitelli stated he supported staff's recommendation of 10% and would vote against the motion. Roll call vote: Ayes: 1 ( Krebsbach) Nays: 3 (Duggan, Vitelli, Schneeman) Motion failed. Roll call vote: Ayes: 3 (Duggan, Vitelli, Schneeman) Nays: 1 (Krebsbach) Motion carried. COUNCIL COMMENTS October 19, 2010 Page 20 Councilmember Duggan moved to set the 2011 city contributions for employees at $1,257 per employee. Councilmember Schneeman seconded the motion. Mr. McKnight, on behalf of the city employees, thanked the council for its generosity in the 2010 and 2011 compensation package. Councilmember Duggan announced that tickets remain available for the November 13, 2010 firemen's dance. He noted they are a volunteer department and this money is used in the department, an excellent cause, and encouraged an additional contribution to show your appreciation. Councilmember Krebsbach reported there were many families at the Somerset School's Family Fun Night She stated that Henry Sibley High School played North High School and lost by one point but it was a great game. Acting Mayor Vitelli noted that a world - famous author, Vince Flynn, lives in the Sunfish Lake neighborhood and went to St. Thomas Academy. He stated one of Mr. Flynn's books was released this week, he is the Tom Clancy of today, and recommended those interested in that type of novel read a Vince Flynn book. Councilmember Duggan added that Mr. Flynn was a guest speaker at last year's Opus and Olives fundraising event. Councilmember Duggan announced that Gateway Bank at The Village gave out 600 pumpkins and 500 donuts last weekend during the celebration. Councilmember Krebsbach reported that the fire department's open house was on October 9, 2010, and they gave away 926 hotdogs. In addition, many children got fire department badges. Mr. McKnight noted the drop off for the bonfire at Mendota Plaza starts on October 25, 2010, and runs through October 29, 2010. He also announced that the next the council meeting is on November 2, 2010, starting at 8:30 p.m. ADJOURN Ayes: 4 Nays: 0 ATTEST: NaiYcy Bauer Acting City Clerk October 19, 2010 Page 21 There being no further business to come before the council, Councilmember Duggan moved to adjourn the meeting. Councilmember Schneeman seconded the motion. Time ofidjournment 8:48 p.m. Jack Vi Acting Mayor Prepared by Carla Wirth, Recording Secretary