HomeMy WebLinkAboutCity Council Minutes 08-23-2005 SpecialAdopted Minutes
Special Council Meeting
August 23, 2005
Mayor Johnson called a Special Meeting of the Plymouth City Council to order at 8:40 p.m. in
Meeting Room 3, of the Plymouth Creek Center, 14800 34th Avenue North, on August 23, 2005.
COUNCIL PRESENT: Mayor Johnson, Councilmembers Hewitt, Slavik, Stein, Bildsoe, Willis,
and Black.
ABSENT: None.
STAFF PRESENT: Fire Chief Kline, Deputy Fire Chief Hurr, Finance Director Hahn, Police
Chief Goldstein, Public Works Director Cote, Park and Recreation Director Blank, Community
Development Director Hurlburt, Financial Analyst Kohn, City Engineer Quanbeck, Public
Services Manager Qvale, Finance Manager Jacobson, Finance Supervisor Leitner, and City Clerk
Paulson.
Review Layout of the Reconstruction of County Road 101 from 12th Avenue to 30th Place
North (51 2),
Public Works Director Cote stated that the County is requesting authorization to proceed with
design activities by seeking layout approval for the reconstruction of County Road 101 from 12th
Avenue to 30th Place North. Public Works Director Cote explained that the project has been
developed in accordance with County policy, which specifies, among other elements, that the
right-of-way costs be split with the City on a 50150 basis. He stated that the City's Capital
Improvements Program (CIP) has identified $420,000 in 2006 as the City's share for design and
right-of-way acquisition and $210,000 in 2007 for construction. A recent cost estimate from the
County has the City's share of the total project costs at $4,168,657. He introduced Jim Grube,
Director of Hennepin County's Transportation Department and County Engineer.
Mr.. Grube discussed and illustrated the proposed layout of the project. He stated he realizes that
the Council is concerned about the increased cost of the City's share of the project. However, if
the Council feels the proposed design makes sense, he would like to direct his staff to begin the
design activity of the project. If the County and City would be unable to "bridge" the finance
package, the County would reject the project and allocate those funds to another project in the
County. He spoke of his desire to work with City staff in the next 30 to 90 days on the financing
of this project.
Councilmember Slavik stated the design is good, but she is very concerned about the financing.
She stated she wouldn't want to approve the design and then have to figure out a way to pay for
the project. Therefore, she stated she believes the discussion on the funding should occur first.
Councihnember Hewitt agreed and stated that this project needs to be undertaken. She stated she
would be concerned about losing the Federal funds that have been allocated for this project.
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Special Meeting of August 23, 2005
Page 2 of 5
Mayor Johnson stated perhaps the Council should set a maximum contribution, but that might
prove to be difficult as well.
Mr. Grube requested that the Council direct staff to negotiate the City's contribution in a 90 -day
timeframe.
Councilmember Black stated that she doesn't want to delay projects in the City's CIP due to
higher costs with this project.
Councilmember Hewitt stated that the City should review other options in increasing revenue for
road reconstruction, such as making developers contribute more. This is common practice in
other communities.
Councilmember Willis cautioned the Council in changing the road design in order to save
money.
City Manager Ahrens reminded the Council of their concerns regarding right-of-way acquisition
for the previous project involving County Road 101.
Mr: Grube stated that he understands their concerns, but the County needs to follow the Federal
relocation laws.
Councilmember Bildsoe asked if the County could delay this project for another year in order to
give the City time to allocate additional funds to this project. Mr. Grube replied the County has
an April 2007 deadline for the Federal funding, which would allow the authorization of the
project by September 2007.
Public Works Director Cote stated at the Regular Council Meeting on September 13, the current
proposed layout would be presented along with a condition in the Resolution to direct staff to
discuss with the County, within the next 90 days, a cost sharing agreement with the County.
This wouldn't imply that the Council would approve the cost sharing agreement.
Councilmember Stein asked if the City would liable for the cost of any of the County's design
activities if a cost sharing agreement couldn't be agreed upon in the future. Mr. Grube replied
no.
Proposed 2006 Budget and Tax Levies
City Manager Ahrens stated tonight is the first of three meetings scheduled for review of the
proposed 2006 budget. She stated the next two meetings would be held on September 6 and
September 8. She stated the proposed Capital Improvements Program would also be on the
September 8 agenda.
She stated the proposed 2006 budget emphasizes the Council's goals of increased street
maintenance and street reconstruction, it continues improvements in the water and sewer
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Special Meeting of August 23, 2005
Page 3 of 5
infrastructure, enhances storm water improvements and reduces dependence on the utility trunk
fund. She noted that there are no levy limits for 2006; however, staff has used a similar formula
for comparison purposes. The Implicit Price Deflator is used for inflation plus growth in
households, and 50% of the growth in commercial/industrial market value. She stated there was
an increase of 5.078% in the Implicit Price Deflator, 1.247% in the number of households, and
821% in the commercial/industrial market value, for a total of 7.146%.
Finance Director Hahn added that without the increase for street reconstruction, phasing out of
limited market value, the State mandated PERA increases and valuation differential, the tax
increase would be 1.2% on an average valued home in the City. He stated the tax rate is
proposed to decrease from 24.66 to 24.55. This would amount to a proposed tax increase of
55.06 (6.72%) on an average valued home. The proposed tax on a $1,000,000 valued business
would be $151.70 (5.28%). The proposed budget would keep the general fund increase at
6.18%, which is below inflation and growth. Without the proposed hiring of an electrical
inspector, the general fund expenditure increase would be 5.92%, and without the mandated
State PERA increase, the general fund increase would be 5.5%.
Mayor Johnson asked how fuel costs are allocated. Finance Director Hahn replied those costs
are charged to the central equipment fund and then charged back to the users.
A discussion was held on health care cost increases for City employees. Finance Director Hahn
stated staff has budgeted for a 10% increase, even though the City's history the last two years has
been around a 6% increase.
Finance Director. Hahn stated that staff is recommending a tax levy for street reconstruction and
keeping the debt service so that levy could be phased in. Financial Analyst Kohn. added if the
Council follows through with the street reconstruction program laid out several months ago, the
City would be able to levy for that. A levy of $1.5 million would reduce the City's need to bond
for street reconstruction. He noted the importance of levying more than $600,000 per year which
is the levy for the current year. Finance Director Hahn added that there aren't a lot of options to
assist in financing improvements to County Road 47, County Road 101, and Vicksburg Lane.
Councilmember Black stated she noted that there are no fiends budgeted for the 10th playfield,
and she questioned how the City is going to address that need. She stated perhaps the City
would need to reduce the amount of land needed from 60 acres to 30 acres. She noted that there
is always the option of having a referendum on this item on the 2006 General Election ballot.
City Manager Ahrens discussed the proposed budget for median maintenance, which would
include the replacement of plantings at some of the medians.
Councilmember Willis asked Councilmembers if they realized that in reviewing the Fire
Department's proposed budget for personnel, it appears that they are progressing towards a
future full-time fire department.
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Special Meeting of August 23, 2005
Page 4 of 5
Councilmember Willis also noted that in the facilities management budget, there are major
expenditures planned for repairs to the Fire Stations. Finance Director Hahn stated these are
much needed improvements, some of which are because of water damage.
Mayor Johnson noted the request from the Plymouth Civic League for the City to increase their
contribution from $25,000 to $30,000. Councilmember Black asked if the additional funds
would be covered by the charitable gambling proceeds. Finance Director Hahn replied the
amount of charitable gambling proceeds has been decreasing, but he projects that the City would
be receiving $13,000415,000 per year. Mayor Johnson requested that staff investigate what
factor(s) is contributing to the decrease in the amount of charitable gambling revenue.
Councilmember Bildsoe noted that there is a fiend balance of $6,062,000 in the risk management
fiend, and he asked if those funds could be used for other items. Finance Director Hahn replied
that the City's financial advisors reviewed that fund balance 10 years ago and recommended that
the City maintain that healthy of a balance in that fund.
The Council briefly discussed proposed utility rate increases. Mayor Johnson stated that she
would like to review an average utility bill; therefore, 'she requested that an average utility bill be
provided to the Council for their next budget study session.
Mayor Johnson commented that the Wayzata Community Education's programs look very
similar to the City's, and she asked if staff works with them to make sure there is no overlapping
of classes. Park and Recreation Director Blank replied the City cancels classes if there aren't the
minimum class enrollments. He noted that LifeTime is also marketing similar programs. He
stated there would always be that issue, as there are the four school districts who are in a number
of communities that also have their own programs. He stated if this is something that the
Council desires to pursue, the Council should have a discussion with the school boards.
Councilmember Hewitt stated since there are no levy limits this year, perhaps the Council and
staff should start to increase the staffing level of firefighters and police officers for the future.
Mayor Johnson asked if staff has had conversations with the cities of Maple Grove and
Minnetonka for some efficiency in police and fire services. Police Chief Goldstein replied that.
he has started to study the possibilities. He stated currently, there are limited capabilities;
however, in the future, there could be more opportunities. Councilmember Hewitt suggested that
the Council conduct a future meeting with the City of Maple Grove.
Police Chief Goldstein stated in 2004 and 2005 the City added a net six officers. He stated he
didn't propose the hiring of new officers in the 2006 budget in order to stabilize the staffing
levels so they could be evaluated in 2006. He stated there were a number of internal issues that
they were able to mitigate, but there were external issues that they were unable to mitigate.
Councilmember Hewitt reiterated that it would be easier to add a police officer now since there
are no levy limits. It could be harder to add six to eight officers in 2007.
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Special Meeting of August 23, 2005
Page 5 of 5
Councilmember Willis stated that there are other City departments (maintenance workers in
streets and parks, etc.), other than public safety that are impacted with growth in the community.
Fire Chief Kline stated their department is also studying their staffing levels.
Planning Commission Vacancy
Mayor Johnson reported that Peggy Larson, who currently serves on the Planning Commission,
would be unable to serve indefinitely. The Council then held a discussion on the current
applications on file that have been received by residents who desire to serve on the Planning
Commission.
Motion was made by Councilmember Bildsoe, and seconded by Councilmember Black, to
declare a vacancy on the Planning Commission and to adopt a Resolution Appointing Melissa
Musliner to the Planning Commission for a term to expire January 31, 2007 (Res2005-335).
With all members voting in favor, the motion carried.
Adiournment
Mayor Johnson declared the meeting adjourned at approximately 11:15 p.m.
z41r
andra R. Paulson, City Clerk