HomeMy WebLinkAboutCity Council Minutes 09-03-2002 SpecialAdopted Minutes
Special Council Meeting
September 3, 2002
Mayor Tierney called a Special Meeting of the Plymouth City Council to order at 7:00
p.m. in the Public Safety Training Room, 3400 Plymouth Boulevard, on September 3,
2002.
COUNCIL PRESENT: Mayor Tierney, Councilmembers Hewitt, Black, Slavik, Harstad,
Johnson, and Stein.
ABSENT: None.
STAFF PRESENT: City Manager Johnson, Assistant City Manager Ahrens, Fire Chief
Kline, Fire Captain Hurr, Finance Director Hahn, Public Services Manager Qvale,
Housing Manager Barnes, Finance Office Supervisor Leitner, Community Development
Director Hurlburt, Park and Recreation Director Blank, Police Chief Gerdes, and City
Clerk Paulson.
Approval of Agenda
Motion was made by Mayor Tierney, and seconded by Councilmember Johnson, to
approve the agenda. With all members voting in favor, the motion carried.
Report on HRA Meetin
Community Development Director Hurlburt reported that the HRA, at the Council's
request, discussed a possible bond issue for housing programs or land purchase and
decided to not recommend a bond issue or an increased levy at this time. They preferred
that there be a specific plan before levying for additional funds.
City Manager Johnson stated the Council has the authority to increase or decrease the tax
levy that is being recommended by the HRA.
Councilmember Harstad asked how much of the HRA tax levy is committed to Plymouth
Towne Square. Community Development Director Hurlburt replied approximately 49%.
Councilmember Harstad asked what funds have been allocated for the housing
rehabilitation program. Housing Manager replied $135,000, which is the Community
Development Block Grant (CDBG) program. He stated the fiscal year started July 1.
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Special Meeting of September 3, 2002
Page 2 of 7
Councilmember Harstad stated approximately seven households could receive assistance
at an average amount of $20,000 each. He stated the City's waiting list contains 21
households. Therefore, it would take three years to assist those based on the current
funding.
Housing Manager Barnes stated there could be other funding sources in addition to the
CDBG funds. The HRA currently provides assistance to an average of 12 households per
year.
Councilmember Harstad stated it's difficult to advertise a program unless you have the
funding resources committed to that program. He stated 16.6% of the Plymouth
households have an income level less than $35,000 per year (based on 2000 census). He
reiterated that there is an unmet need.
Mayor Tierney stated affordable housing is not only a City issue but also a State and
national issue. She stated the Council needs to determine if this is the best time to
increase the HRA levy. She stated the Mayor's Housing Task Force would be providing
a report on the region in terms of affordable housing, and she is interested in reviewing
that report.
Councilmember Hewitt thanked Councilmember Harstad for his comments as she
realizes that there is an unmet need. However, there are other funding sources that
provide assistance, and she stated the need for affordable housing will never be
completely met. She stated increasing the HRA levy wouldn't address all of his
concerns.
Councilmember Johnson asked if the housing program is regulated by City or Federal
guidelines. Community Development Director Hurlburt replied the program is dictated
by Federal guidelines. Therefore, staff suggests not adding City funds to this type of
program.
Councilmember Johnson stated in the future, if the Council were to increase the HRA tax
levy, she would suggest those funds be utilized for programs other than through the
CDBG program. She stated perhaps there are other options, including private and/or
business partnerships.
Councilmember Stein stated this is a good idea, but he feels the timing is wrong. The
Council needs to determine where the additional funds would be allocated. He agreed
that the City would never meet the need for affordable housing and rehabilitation
Adopted Council Minutes
Special Meeting of September 3, 2002
Page 3 of 7
assistance. He added that any proposed increase in the HRA tax levy or a bond issue
should include a public forum where residents have the opportunity to comment.
Councilmember Black echoed comments made by Councilmembers Hewitt, Johnson, and
Stein. She reiterated that there are social service agencies that also have programs that
residents could utilize.
Motion was made by Mayor Tierney, and seconded by Councilmember Hewitt, to accept
the HRA's recommendation to not proceed with a new housing initiative at this time.
Councilmember Harstad asked if the Council could support requesting the HRA and staff
to determine what the unmet need is for affordable housing and rehabilitation assistance.
In addition, perhaps staff could recommend a program that would allow citizens to
remain in their homes.
Councilmember Johnson stated due to the age of the some of the City's housing stock,
the City might need to begin reviewing code compliance.
Councilmember Harstad stated that there are over 4,000 homes that are over 35 years old
in the City.
Community Development Director Hurlburt stated the HRA has discussed updating the
strategic plan, and they are working towards some of the goals that have been established
in the Comprehensive Plan. She cautioned the Council that some of these items could
have City implications, i.e. code compliance which would be a City issue, not the HRA.
There being no further discussion and with all members voting in favor, the motion
carried.
Councilmember Harstad made a motion to direct the Housing Manager to draft a
rehabilitation program, similar to the CDBG program, but specific for the City. This
motion failed for lack of a second.
Councilmember Johnson suggested that the HRA review the Council's minutes from this
meeting.
Mayor Tierney reiterated that the affordable housing issue needs to be discussed metro -
wide. She mentioned the recent lawsuit involving the City of Eagan.
Adopted Council Minutes
Special Meeting of September 3, 2002
Page 4 of 7
Report on Water Resources Fund
City Manager Johnson stated the intent of the surface water utility fee was to fund the
Water Resources Program, and the maintenance of all City ponds in the City wasn't part
of that plan.
Councilmember Black recalled the discussion of including the fees of the watershed
districts into the water resources fund. She stated she would rather not fund drainage
maintenance and street sweeping out of the water resources fund.
Councilmember Stein agreed with Councilmember Black as those items should be part of
the general fund expenditures. He referred to the minutes when the plan was adopted,
that the water resources fund would only fund storm water utility programs. He realizes
the situation that the Council is facing with a very tight budget for 2003, but he doesn't
want this to be a continued practice. He recalled that existing street sweeping costs were -- -- —
not going to be moved from the general fund to the water resources fund when the fee
was originally adopted.
Councilmember Johnson asked if this could have been anticipated when the, fee was
adopted as an adjustment could have been made at the time.
Mayor Tierney stated there are options that Council could review every year, and the City
could also contact other cities to review what fees they are charging.
Motion was made by Councilmember Harstad, and seconded by Councilmember
Johnson, to keep drainage maintenance and street sweeping costs in the general fund.
Councilmember Harstad stated if the Council were to bond for street reconstruction, that
could "free up" approximately $1,283,400 in the general fund. The street sweeping costs
could then remain in the general fund.
Councilmember Stein stated he wouldn't support the motion as it is unknown what the
Legislature will enact in 2003. Therefore, this would use one of two options that the
Council has to adjust to future State cuts.
Councilmember Black agreed with Councilmember Stein, as there are too many
uncertainties.
City Manager Johnson added that a bond issue would require 6/7 vote of the Council.
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Special Meeting of September 3, 2002
Page 5 of 7
There being no further discussion and with all members voting against the motion but
Harstad, the motion failed.
City Manager Johnson stated that if the street sweeping and drainage maintenance
budgets are moved to the water resources fund, a surface water fee increase of $.95
would be needed if the City took over maintenance of all private ponds.
The Council discussed the need for maintenance of the ponds as the ponds assist in
keeping the lakes clean.
Councilmember Harstad stated the current fee generates approximately $1.5 million per
year. He asked if the Council is willing to delay programs contained in the Surface
Water Management Plan in order to fund other programs from the general fund.
Councilmember Harstad made a motion to increase the surface water management fee to --
4 per month. This motion failed for lack of a second.
The Council asked what projects could be delayed in the Surface Water Management
Plan if street sweeping and drainage maintenance costs are included in the budget.
Public Services Manager Qvale replied there would be no additional street sweeping
costs, but just to maintain the basic service.
Motion was made by Councilmember Stein, and seconded by Councilmember Hewitt, to
remove wellhead protection funding from the water resources fund and replace it with
additional street sweeping costs. With all members voting in favor, the motion carried.
Report on Bonding for Street Reconstruction
The Council requested staff to provide a report on the current conditions of the streets,
which streets are in need of repair, etc.
Councilmember Harstad commented that the City of Minnetonka bonds for street
reconstruction.
Finance Director Hahn stated if the Council wouldn't assess for street reconstruction,
there would need to be a 7/7 vote or there could be a reverse referendum.
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Special Meeting of September 3, 2002
Page 6 of 7
The Council decided not to pursue a bond issue at this time for street reconstruction.
Report on Fire Department Equipment
City Manager Johnson stated the top priority for the Fire Department is to fund a new
exhaust system at Fire Station No. 2 at a cost of $17,820. Fire Chief Kline has identified
a grant program that could pay 50% of the cost. If the grant is received, exhaust systems
could be installed at both Fire Station 1 and Fire Station 2.
Regarding other equipment purchases, the professional services line item could be -
reduced by $5,700 to assist in funding the turn -out clothing.
Motion was made by Councilmember Hewitt, and seconded by Councilmember Stein, to
fund $17,820 from the 2002 budget for an exhaust system at Fire Station 2, and to make-- -------------- -
changes from Professional Services to Safetv Eauipment Clothing as recommended in the
staff report. If a grant is received, systems could be installed at two stations. With all
members voting in favor, the motion carried.
Report on Figure Skating Program
City Manager Johnson briefly discussed the report from staff on figure skating revenue.
He stated that figure skating revenue is down, but the ice rental charges are up a
corresponding amount. This is due to a change in how the figure skating program is
being operated and would result in a slight net revenue increase for the City.
Motion was made by Councilmember Stein. and seconded by Councilmember Hewitt, to
direct staff to prepare the maximum tax levy and draft budget resolutions for the
September 9 Council meeting based on the Council's discussions and scheduled
December 2 as the Truth in Taxation Hearing and December 9 as the reconvened date.
With all members voting in favor, the motion carried.
Set Future Study Sessions
Motion was made by Councilmember Stein, and seconded by Councilmember Hewitt, to
schedule the following Study Sessions:
1. Annual City Manager performance review on September 24 at 5:00 p.m. (Council is
to submit their evaluations to the City Manager by September 13).
2. I-494 Corridor Commission update on September 24 at 6:00 p.m.
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1 Special Meeting of September 3, 2002
Page 7 of 7
3. Options for policy of disposal of City owned property on November 12 at 5:30 p.m.
4. Discuss Fire Department report and lawful gambling request after the Truth in
Taxation Hearing on December 2.
With all members voting in favor, the motion carried.
The Council noted that they would be discussing maintenance of the. City's ponds and
street reconstruction in the spring of 2003.
Long -Term Capital Improvement Proiects
City Manager Johnson mentioned a few projects i.e. West Medicine Lake Park building,
Fourth Fire Station, acquiring land for the Northwest Greenway, fourth sheet of ice, and
finishing the lower level of the Plymouth Creek Center. He stated staff has provided a
scenario that could utilize funding other than a bond issue to accomplish these projects.
Adi ournment
Motion was made by Councilmember Hewitt, and seconded by Councilmember Slavik,
to adjourn the meeting at 9:10 p.m. With all members voting in favor, the motion carried.
andra R. Paulson, City Clerk