REGULAR MEETING OF THE COUNCIL OF THE CITY OF VADNAIS HEIGHTS NOVEMBER 15, 2017
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1 REGULAR MEETING OF THE COUNCIL OF THE CITY OF VADNAIS HEIGHTS NOVEMBER 15, 2017 The regular meeting of the Council of the City of Vadnais Heights was held on the above date and called to order by Mayor Fletcher at 7:02 p.m. ROLL CALL Upon roll call, the following members were present: Mayor Bob Fletcher, Councilmembers: Terry Nyblom, Craig Johnson, and Greg Urban. The following members were absent: Councilmember Heidi Gunderson. Also present were: Kevin Watson, City Administrator; Kathy Keefe, Assistant City Administrator; Mark Graham, City Engineer; Nolan Wall, Planning/Community Development Director; Bob Sundberg, Finance Director; Ed Leier, Fire Chief; Caroline Bell Beckman, City Attorney; Jeff Melcoch, Cable Producer; and Beckie Kidd, Deputy Clerk. Everyone present stood and recited the Pledge of Allegiance. City Administrator Watson provided several announcements. APPROVAL OF AGENDA Fletcher noted that there is an addition to the Consent Agenda of item 7E Approve Amendment to Grant of Parking Easement Related to HealthEast Property. Upon motion by Urban, seconded by Nyblom, it was RESOLVED, that the agenda for the November 15, 2017 Council Meeting be approved, as amended. APPROVAL OF MINUTES A. November 1, 2017 Workshop Meeting RESOLVED, to approve the November 1, 2017 Workshop Meeting Minutes as presented.
2 B. November 1, 2017 Regular Meeting Councilmember Nyblom requested an amendment to the Amendment to the Commercial Street Assessment Policy discussion. He requested removal of or another source of funding from the motion on this item. Councilmember Johnson concurred RESOLVED, to approve the November 1, 2017 Regular Meeting Minutes as amended. APPROVAL OF CONSENT AGENDA Upon motion by Johnson, seconded by Nyblom, it was RESOLVED, that the Consent Agenda items for the November 15, 2017, meeting be approved as follows: OPEN TO THE PUBLIC A. Approve Claims #75318 Through #75380 and Electronic Claims #1157 Through #1161 for Payment B. Approve Changing the December 20, 2017 Regular City Council Meeting to December 19, 2017 and Cancelling the Workshop Meeting C. Approve Certification of Delinquent Refuse/Recycling Accounts D. Approve 2017 Bow Hunting Permit for Tyler Morgan hunting at 3904 and 3910 McMenemy Street E. Approve Amendment to Grant of Parking Easement Related to HealthEast Property Austin, White Bear Lake Area High School, introduced himself and spoke about what he and his fellow classmates have been learning in their American Government class. He asked about a pothole at F&M Bank. City Engineer Graham responded that he will take a look, but that it may be a private property issue. PRESENTATIONS None. -2-
3 PUBLIC HEARINGS A. Open and Continue Public Hearing for Franchise Fee Policy Consideration Mayor Fletcher explained that the Public Hearing will be opened tonight and then will be continued to the December 6, 2017 City Council meeting. City Council s intent was not to make any decision regarding implementation at either meeting. A decision would probably occur in January of Mayor Fletcher gave an overview of why the City Council is discussing a Franchise Fee. The city is looking to find a new funding source of about $300,000 a year to be used for street repair. City Administrator Watson reiterated that the city is looking for a new funding source for repairing streets. Over the past seven years, the City has spent between about $100,000 and $350,000 on its portion of street projects. The projects have resulted roughly in one mile of road being repaired per year, which is about 75% of the ideal rate of repair. The goal is to repair about 1.2 miles of street each year. The city has been using its pooled TIF dollars to pay for its portion of street projects. These dollars are of a finance amount that will eventually be extinguished. Mr. Watson explained what a Franchise Fee is. Minnesota State Statute allows cities to impose a fee on utility companies that use the public right-of-way to deliver service. Staff has recommended a flat rate fee based on individual types of users. There are several rate concepts that have been discussed. The Promoted Option would generate just under $300,000 per year. There was City Council concern under this option that businesses would be charged a disproportionate amount given the amount of commercial streets in the city. Staff then spoke with Xcel Energy and Connexus Energy about reworking the rates and reducing the revenue that would be received from commercial properties by about $50,000 and increase the revenue that would be received from residential properties by about $50,000. This request, Vadnais Heights City Request, ends up being about $15,000 short of the amount that would be received under the Promoted Option. Given that the Vadnais Heights City Request raised less than what the city was looking to generate, staff then asked Xcel Energy and Connexus Energy to raise residential rates by another twenty-five cents, the Vadnais Heights City Request + Res Increase option. This option would generate about $310,000 per year. Mr. Watson noted that this amount is still short of what the city should be spending each year on street improvements, which is about $400,000. Mayor Fletcher summarized that the proposals range from one dollar to three dollars per month for residential properties. The range for commercial properties was between $35 and $70 per month, depending on usage. Mayor Fletcher opened the Public Hearing at 7:19 p.m. Jay Olson, 3490 English Street, stated that he does not have an opinion on the Franchise Fee itself but that he supports the effort to raise money to fix city streets. The street he lives on was repaired in 2016 and the improvement was needed. The neighborhood also received new utilities, new signs, and new curb. He believes that streets say a lot about a community. Having a new street in his neighborhood resulted in the residents fixing up their properties as well. -3-
4 Mayor Fletcher stated that the Public Hearing will be continued to the December 6, 2017 City Council meeting. Councilmember Nyblom asked if the city chose not to implement a Franchise Fee, roughly how many years of pooled TIF money would it have to spend on street projects. City Administrator Watson noted that it would depend on if the city were using the TIF dollars for other projects. He estimated probably four to six years. Mr. Watson stated that it also depends on the price and size of the street projects. He added that there would be no project in Councilmember Nyblom stated that at the last City Council meeting businesses received a 50% reduction in their cost for street projects. The city is also allocating its remaining TIF dollars to economic development. Additionally, one new option was to ask the residents to pay more in potential Franchise Fee dollars while the cost for commercial customers will be reduced. He stated that if this were the final proposal, he would be voting no. There was discussion regarding voting on a Franchise Agreement and Ordinance setting fees at the next City Council meeting. It was decided that no vote will happen at the next meeting. Councilmember Johnson asked how long of a process there would be before any Franchise Fee dollars could start to contribute to any street projects, if a Franchise Fee option were to be approved. Colette Jurek, Xcel Energy, explained that it would take 90 days to implement the fee. Once they receive the approved Ordinance, Xcel Energy would need 60 days to program the fee and test to make sure it was being applied correctly. The Minnesota Public Utilities Commission takes 30 days to approve it as well. Xcel Energy will also work with Connexus Energy on when to begin implementation because the new fee has to start on the same date for both companies. Councilmember Johnson noted then that if approved in January of 2018, the city would only receive roughly 75% of the annual revenue for that year. Ms. Jurek added that Xcel Energy and Connexus Energy would collect the fee monthly from their customers and they transmit the fee to the city on a quarterly basis. Councilmember Nyblom asked if the franchise agreements have been drafted yet. City Administrator Watson stated that he received them yesterday and will get them to the City Council to review. OLD BUSINESS A. Consider Extension of Contract with MJW Services, LLC for Cleaning/Setup Services for Vadnais Heights Commons and Cleaning Services at City Hall for a Term of January 1, 2018 through January 1, 2020 Assistant City Administrator Keefe stated that staff recommended to approve the second twoyear extension option of the contract that the city has with MJW Services, LLC. They provide cleaning services and set-up and takedown services at the Vadnais Heights Commons as well as custodial services at City Hall. -4-
5 The extension of the contract would be for a period of January 1, 2018 through January 1, Ms. Keefe added that MJW Services, LLC has been working with the city for quite a few years, and that the city is very happy with their work. She has also met with MJW Services, LLC and negotiated rates that she believes are fair for 2018 and Upon motion by Johnson, seconded by Urban, it was RESOLVED, to approve the second two year extension option of the current contract agreement with MJW Services, LLC as custodial service and set-up/take down provider at Vadnais Heights Commons and custodial services at City Hall for a contract period of January 1, 2018 through January 1, B. Consider Distribution of Request for Proposals for Sales/Marketing/Event Consultant at Vadnais Heights Commons Assistant City Administrator Keefe explained that the current agreement with the sales, marketing, and event consultant at the Vadnais Heights Commons expires on January 1, City Council has requested to go out for a Request for Proposals (RFP) for this position. The drafted RFP is for a three-year contract with two additional one-year extension options. The submittal deadline would be December 15, Ms. Keefe added that the City Attorney has reviewed the RFP and has no objections. Due to the timing of the RFP and the upcoming holidays, Ms. Keefe also recommended extending the current agreement with Palmer ProVisions to February 1, 2018 or March 1, 2018 in order to get the new consultant acclimated to the Vadnais Heights Commons and various events. City Council consensus was to extend the existing contract to March 1, Upon motion by Urban, seconded by Nyblom, it was RESOLVED, to authorize staff to advertise an RFP for a Sales/Marketing/Event Consultant at Vadnais Heights Commons and to extend the current contract between the City of Vadnais Heights and Palmer ProVisions expiring January 1, 2018 to March 1, C. Consider Adopting Ordinance No. 714 Establishing Chapter 152 Relating to Predatory Offender Residency City Attorney Bell Beckman stated that the proposed ordinance would regulate where Level III Predatory Offenders could reside within the city. It was explained that Level III Predatory Offenders are those deemed to have the highest risk to re-offend. Attorney Bell Beckman added -5-
6 that the city has a public health, safety, and welfare interest in protecting children. Children are the most likely victims of these offenders. In response to a recent federal district court case, which questioned the State of Minnesota s civil commitment statute and process, many cities have responded by adopting similar ordinances. Impetus Attorney Bell Beckman noted that the proposed ordinance establishes a distance requirement of 500 feet from certain locations. The locations include libraries, licensed childcare centers, religious facilities where there is programming for minors, schools, and school bus stops. Since the most recent workshop meeting, staff has added state licensed residential facilities housing minors to the list of locations that have a prohibited distance requirement. It was noted that the city cannot zone out these offenders by prohibiting them from living anywhere in the city. The proposed ordinance also provides an exception for offenders to live with a family member. Councilmember Nyblom thanked staff for their hard work on this ordinance RESOLVED, to adopt Ordinance No. 714 establishing Chapter 152 of the City Code relating to predatory offender residency. Upon motion by Johnson, seconded by Nyblom, it was RESOLVED, to authorize publication of Ordinance No. 714 by title and summary. D. Consider Approval of Final Payment and Accept Improvements for the 2017 Street Improvement Project City Engineer Graham noted that all the work has been completed for the 2017 street project. The following streets were improved; Heritage Court West, Oakhurst Avenue, Bramblewood Avenue, and a portion of Willow Grove Lane. The contractor was T.A. Schifsky and Sons, Inc. The original contract price was about $479,700. The total project cost ended up coming in under budget at a cost of about $460,000, which resulted in a savings of about $20,000. Councilmember Nyblom asked for an update regarding the patching on Arcade Street. City Engineer Graham explained that issue is part of an entirely different project. It is related to the Veteran s Village project, and he has been in contact with them, and will continue to remind them about completing the work. -6-
7 Councilmember Johnson asked if this item could be placed on the Consent Agenda if it comes back under budget. City Attorney Bell Beckman answered in the affirmative. City Engineer Graham added that he brings the final payment to the City Council to fully disclose the final cost and to provide good will to the contractor and design engineer when under budget RESOLVED, to authorize Final Payment Number 4 in the amount of $29, from Account No to T.A. Schifsky and Sons, Inc. and Accept and Approve the Street Improvement Project. NEW BUSINESS A. Consider Moving Regular City Council and Workshop Meetings to Tuesdays Beginning in 2018 Upon motion by Johnson, seconded by Urban, it was RESOLVED, to change city council meetings to the first and third Tuesday at 7:00 p.m. beginning in B. Consider Setting December 6, 2017 Workshop and Agenda City Administrator Watson presented potential items for the December 6, 2017, Council Workshop including: Engineering Services RFP discussion. Councilmember Nyblom would like to have discussion regarding the Rice Street Bridge project. He would also like a memorandum from the City Attorney regarding what the city s options are moving forward RESOLVED, to Set a December 6, 2017 Workshop meeting and Agenda including discussion of an Engineering Services RFP, and discussion regarding the Rice Street Bridge project with a 5:30 p.m. start time. -7-
8 COUNCIL AND DEPARTMENT REPORTS Finance Director Sundberg had nothing to report. Mayor Fletcher stated that in talking with someone from Ramsey County, they had noted that the city s budget reserve funds are higher than what the State Auditor recommends. He asked about giving that money back to the taxpayers. Finance Director Sundberg explained that it is a matter of opinion. The State Auditor recommends 35-40%. The city s policy is 40-60%, and the current reserve fund balance is about 60%. In his opinion, 60% was fine. He added that the amount will be coming down as there is money proposed to be brought out of the reserve fund in the 2018 budget. Mayor Fletcher asked what the difference in dollars would be between 50% and 60%. Finance Director Sundberg estimated about $400,000 or $500,000. There was further discussion regarding budget reserves. Councilmember Nyblom requested adding an item to the next workshop meeting to look at the city s budget reserve fund. Upon motion by Nyblom, seconded by Fletcher, it was RESOLVED, to add discussion of the city s budget reserve fund to the December 6, 2017 Workshop meeting. Planning/Community Development Director Wall reported that he attended the VHEDC Annual Dinner last night and that it was a great event. City Engineer Graham reported that there will be some work done early this coming Saturday morning on a water and sewer extension to the North Star Mini Storage project. To not inconvenience surrounding businesses, the work has been planned for a Saturday morning. Post cards have been sent out regarding the ice rinks and warming house at Community Park and Westfield Park. The city is also advertising for warming house attendants. There is information on the city s website regarding open gym times at AFSA. Mr. Graham added that there are 150 kids signed up for PJs with Santa thus far. City Attorney Bell Beckman had nothing to report. Fire Chief Leier reported that the Fire Department had its ISO inspection today. ISO is the company that sets insurance rates. The Fire Department is currently rated at a 3. They are one of 29 Fire Departments in the state that has a 3 rating. The St. Paul Fire Department is the only one in the state to have a better rating. Chief Leier added that ISO rates the Fire Dept and not any EMS portion. He hopes to receive the results of the inspection in 4-5 months. Assistant City Administrator Keefe reported that the city is looking for Ice Rink/Warming House Attendants for Westfield Park. Interested parties should visit the city s website for more information and an application. -8-
9 Councilmember Urban reported that he attended the VHEDC Annual Dinner and that it was a great event. Councilmember Johnson had nothing to report. City Administrator Watson applauded the VHEDC for a great event. He also congratulated Fairway Collision and Automotive, ISD 624, Innovize, and MGC Diagnostics on winning awards at the dinner. Mr. Watson noted that City Hall will be closed at noon tomorrow, November 16, 2017, for a staff event. He also reported that the new Audio/Visual equipment has been installed in the City Council Chambers. Councilmember Nyblom had nothing to report. Mayor Fletcher thanked staff for the signed book from VHEDC Annual Dinner keynote speaker Matt Birk. Upon motion by Johnson, the meeting was adjourned 8:04 p.m. Respectfully submitted, ATTEST: Kevin Watson, City Administrator Bob Fletcher, Mayor -9-
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