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1997-12-02 Council minutesCITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Tuesday, December 2, 1997 Pursuant to due call and notice thereof, the regular meeting of the City Council, City of Mendota Heights, Minnesota was held at 7:30 o'clock p.m. at City Hall, 1101 Victoria Curve, Mendota Heights, Minnesota. Mayor Mertensotto called the meeting to order at 7:30 o'clock p.m. The following members were present: Mayor Mertensotto; Councilmembers Huber, Koch, Krebsbach and Smith. AGENDA ADOPTION Councilmember Smith moved adoption of the amended agenda for the meeting. Councilmember Koch seconded the motion. Ayes: 5 Nays: 0 APPROVAL OF MINUTES Councilmember Koch moved approval of the minutes of the November 18, 1997 regular meeting as amended. Councilmember Smith seconded the motion. Ayes: 5 Nays: 0 CONSENT CALENDAR Councilmember Huber moved approval of the consent calendar for the December 2, 1997 meeting along with authorization for execution of any necessary documents contained therein: a. Acknowledgment of the November 25 Planning Commission Minutes b. Acknowledgment of the Building Activity Report for November c. Acknowledge Receipt of Information regarding Parking Cars on City Streets for Purpose of Sale d. Acknowledge the Cancellation of the December 23, 1997 Meeting of the Planning Commission e. Acknowledge Receipt of a Summary regarding Tilsen's Highland Heights Project Complaints f. Authorization to Purchase, Program and Install a Mobile Data Terminal in Squad Car for a cost not to exceed $5,200. g. Approval to Purchase Two Ford Victoria Squad Cars from Superior Ford under the state contract at a cost of $40,602.00. h. Adoption of Resolution No. 97 -79, "RESOLUTION ACCEPTING December 2, 1997 Page 2 WORK AND APPROVING FINAL PAYMENT FOR IMPROVEMENT NO. 93, PROJECT NO. 1 AND IMPROVEMENT NO. 96, PROJECT NO. 2." i. Adoption of "RESOLUTION NO. 97 -80, "RESOLUTION CERTIFYING DELINQUENT SANITARY SEWER RENTAL CHARGES TO THE DAKOTA COUNTY AUDITOR FOR COLLECTION WITH REAL ESTATE TAXES." j. Approval of the List of Contractors k. Approval of the List of Claims dated December 2, 1997 and totaling $197,192.32. Councilmember Smith seconded the motion. Ayes: 5 Nays: 0 TRUTH IN TAXATION HEARING Council acknowledged receipt of the staff report regarding the 1998 budget. City Treasurer Larry Shaughnessy reviewed overhead graphics for Council and the audience. The 1998 City budget is based on the levy adopted at the preliminary hearing in September. This levy cannot be increased but can be decreased until the budget is officially adopted. The General Fund is primarily financed by taxes from the tax levy. A review of proposed public expenditures for 1998 show an overall increase of 2.4 percent for the General Fund over 1997. This includes a 3 percent salary increase for employees and purchase of voting equipment for the 1998 election. Treasurer Shaughnessy reviewed the proposed in department budgets. The primary source of City revenue is: 1) the tax levy, 2) license fees, 3) permit and building fees, and 4) fines. The total projected revenue for 1998 is $3,331,000. The amount of the gross levy is $3,185,480, from which are deducted local performance state and HACA aid. The proposed net certified levy is $2,713,579. Last year the legislature appropriated an increase of aid to be directly applied against the school portion of the tax levy. This resulted in an increase in the City's portion of the tax levy from 17.9 percent in 1997 to 18.8 percent in 1998. The tax levy is 67 percent of the total budget. The City receives neither j Local Government Aid (LGA) nor a contribution from fiscal disparities. Last year commercial and industrial properties contributed $1,971,000 to December 2, 1997 Page 3 fiscal disparities. There is a proposed contingency of $12,000 in the Police Department personal services budget for a Community Service Officer. The new Police Chief will decide whether that position is needed. The three enterprise funds in the City are for engineering, sewer utility and storm water utility. Enterprise funds are expected to be self - funding and make a profit. Revenue is anticipated in the range of $450,000, and expenses are expected to be close to that amount. The sewer fund has operated for the past four years without a rate increase, and no increase is expected in 1998. Residents' tax statements will reflect the property value increase received from the County Auditor last spring. If individual property values did not increase more than 3 percent, City taxes to property owners are not expected to increase. A portion (approximately one - third) of the surplus announced by the state for the current biennium has already been applied to the school levy. Another one -third will be used for property tax relief. At this time the County has not provided tax capacity information. The tax capacity rates applied are based on the tax statements received. Mayor Mertensotto asked the purpose of the indicated fund transfers into the General Fund. City Treasurer Shaughnessy stated that the general fund has financed several smaller improvements over the years, and funds are transferred into the general fund to pay for those improvements. Also, 1 percent of improvement project costs is transferred into the General Fund for administrative costs. Mayor Mertensotto noted that the reduction of taxes on commercial and industrial properties must be made up by residential property. Councilmember Huber noted that the state credit only applies to homesteads. The shift of the tax burden from commercial and industrial properties to residential properties is a permanent change. Mayor Mertensotto stated that he believes the $12,000 contingency in the police budget for a community services officer should be dropped. He stated that the matter will not be decided until there is a new police chief, although he does not believe there is justification for the position. He stated that if it is determined that a position should be funded, the legal contingency amount could provide funding. He also disagreed with the change in structure to pay the Fire Chief and Assistant Fire Chief for December 2, 1997 Page 4 taking calls, as they are already paid separately for administrative duties. Councilmember Krebsbach asked if there will be a decrease in the Legal Contingency Fund by the amount planned for a community service officer. City Treasurer Shaughnessy responded that the decrease will come from the police salary schedule. If it is needed, it will be taken from the Legal Contingency Fund. Mayor Mertensotto opened the hearing to public comment. One resident stated that for three consecutive years the value of his house has been raised over $2,000. He expressed his strong disagreement with the fiscal disparities program which he believes amounts to "gouging." The mil rate or value goes up, even if the economy goes down. It is not a good assessment of property and is not truly used for the people. Mayor Mertensotto stated that out of state travel costs are becoming significant. He would like to see travel approved by the Council in advance and requested that a resolution to this effect be placed on the consent calendar for the December 16, 1997 meeting. EQUIPMENT CERTIFICATES OF 1997 Council acknowledged receipt of the bids for the 1997 equipment certificates. City Treasurer Shaughnessy stated that the low bid for the $380,000 Equipment Certificates is from Cronin at 4.24 percent, which is the lowest bid in a long time. He recommended awarding the bid to Cronin and Company. Councilmember Huber moved to adopt Resolution No. 97 -81, "RESOLUTION ACCEPTING BID ON THE SALE OF $380,000 GENERAL OBLIGATION EQUIPMENT CERTIFICATES OF 1997, PROVIDING FOR THEIR ISSUANCE, AND LEVYING A TAX FOR THE PAYMENT THEREOF." Councilmember Krebsbach seconded the motion. Ayes: 5 Nays: 0 December 2, 1997 Page 5 BONDS OF 1997 Council acknowledged receipt of the bids for the 1997 improvement bonds. City Treasurer Shaughnessy stated that the low bid on the $1,900,000 Improvement Bonds is from Miller Johnson at 4.6 percent. Councilmember Krebsbach moved to adopt Resolution No. 97 -82, "RESOLUTION ACCEPTING BID ON THE SALE OF $1,900,000 GENERAL OBLIGATION REFUNDING AND IMPROVEMENT BONDS OF 1997, PROVIDING FOR THEIR ISSUANCE, PLEDGING FOR THE SECURITY THEREOF SPECIAL ASSESSMENTS, AND LEVYING A TAX FOR THE PAYMENT THEREOF." Councilmember Smith seconded the motion. Ayes: 5 Nays: 0 LONQUIST REQUEST ESCROW RETURN Council acknowledged receipt of A request from Ms. Cynthia Lonquist, 740 Mendota Heights Road, for a return of her escrow which was submitted in accordance with the development agreement for Mendota Woods. Council also acknowledged an associated report from the Public Works Director. Mayor Mertensotto stated that he agrees with the City Engineer's recommendation that the escrow be held until the work is completed. Councilmember Koch stated if Ms. Lonquist fulfilled all of the conditions agreed upon, the City must release that money. She asked what work needs to be completed. Public Works Director Danielson responded that the front yard erodes into the trail. No area has been established for a front yard. The City Engineer believes a retaining wall should be put in to remedy the erosion. The Building Inspector has requested that the weeds be mowed on numerous occasions. A cut lawn would hold the soil in place. There is also a large dead tree on her property that is a safety hazard. Councilmember Krebsbach asked whether the city requires a front lawn. Public Works Director Danielson responded that a lawn is not necessarily required but there must be some kind of vegetation with a root system to stabilize the yard. CASE NO. 97-40 THOMPSON LOT SIZE VARIANCE Ayes: 5 Nays: 0 CASE NO. 97 -39 CARD - CUP AND VARIANCE December 2, 1997 Page 6 Councilmember Koch stated that the work being required may cost more than the $250 in the escrow account. She would like to see the City approach Ms. Lonquist and explain what was signed in the development agreement that she must abide by, and that there will be many future problems if her yard continues to erode. Council acknowledged receipt of an application for a lot size variance from Mr. Samuel K. Thompson at 709 Cheyenne Lane, along with staff reports. Administrative Assistant Hollister reported that the Planning Commission voted unanimously to grant the variance on condition that the variance for the smaller size lot does not automatically grant him any other setback variance or special planning approval that may be needed when he submits his housing plans. If further variances are needed, Mr. Thompson will have to reapply for them. Mayor Mertensotto asked how the size of the structure will be controlled if a variance is allowed to the minimum lot size on what is already a substandard lot. Administrative Assistant Hollister responded that the setback requirements applied to every other lot in the City will be adhered to with the project. He noted that the address of the property will be 703 Cheyenne. Councilmember Smith moved to informally approve the variance request and to direct staff to prepare a revised resolution with the express condition that the applicant not request further setback variances as the lot continues to be developed. Councilmember Huber seconded the motion. Council acknowledged receipt of an application from Mr. Joseph Card, 644 Brookside Lane, for a Conditional Use Permit (CUP) and variance. Council also acknowledged a written request from Mr. Card that the item Ayes: 5 Nays: 0 • December 2, 1997 Page 7 be postponed to the December 16, 1997 Council meeting. Councilmember Smith moved to continue the case and reschedule it for the Council's regular meeting of December 16, 1997. Councilmember Huber seconded the motion. Council acknowledged receipt of the status report regarding use of the Community Development Block Grant (CDBG) funding in 1997. City Administrator Batchelder explained that the CDBG funding has been used for a rehabilitation loan program in the City for the past four years. It is a revolving loan program whereby loan payments made are paid back into the program. In 1997, the City received $44,000 for this program. The current balance is $25,700. If the same amount is received in 1998, there will be approximately $69,700 available for housing rehabilitation. In 1997, the City received one application for house rehabilitation funding. i In 1998, it is expected that approximately $35,000 to $40,000 will be used from this fund for housing rehabilitation. Ayes: 5 Nays: 0 ACTIVITY CENTER Councilmember Smith stated that the City made a commitment to maintain quality condition of housing. She requested that a greater effort be made in 1998 toward this goal and requested that this matter be included in the Council's goal- setting session to see if there may be another avenue to pursue. Councilmember Smith moved to designate CDBG funds received in 1998 to the City's housing rehabilitation program. Councilmember Koch seconded the motion. Council acknowledged receipt of a letter of request from Mr. Thomas Weisbecker, member of the School Board and Finance and Facilities Committee. Mayor Mertensotto explained that the proposed Sibley Activity Center includes a senior community center, ice arena and other miscellaneous uses. The Board of Education, in response to a petition from residents requesting an activity center, is requesting a resolution of support from the City. He stated that more detailed information is needed, and he would COUNCIL COMMENTS December 2, 1997 Page 8 like to see a copy of the petition. Councilmember Smith stated that the material that has been presented is confusing because the initial proposal was amended to include a pool and other facilities, which would not be self - supporting. It was noted that the City of Arden Hills is spending $25,000 a year to subsidize a community center. It was the consensus of the Council to seek more detailed information about the proposed activity center before submitting a response to the School Board. Councilmember Huber stated that the Cable Commission has reported the sale of Continental to US West. However, the telephone company cannot own a cable franchise. US West is proposing a separate spin -off company for cable operations and has submitted a petition to the Federal Communication Commission (FCC) to grant them exclusion. A report will be forthcoming from the Cable Commission Attorney and Charter and US West advising the Commission of the current status of the franchise. Councilmember Smith stated that she would like this matter discussed further and requested a copy of the meeting tape for the Council's information. ADJOURN Councilmember Krebsbach moved to adjourn the meeting to executive closed session to discuss labor negotiations. Councilmember Koch seconded the motion. Ayes: 5 Nays: 0 TIME OF ADJOURNMENT: 9:22 p.m. I athleen M. Swanson City Clerk Charles E. Mertensotto Mayor