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HomeMy WebLinkAboutCity Council Minutes 03-07-1994MINUTES REGULAR COUNCIL MEETING MARCH 7, 1994 The regular meeting of the Plymouth City Council was called to order by Mayor Tierney at 7:00 p.m. in the Council Chambers of the City Center, 3400 Plymouth Boulevard, on March 7, 1994. PRESENT: Mayor Tierney, Councilmembers Edson, Anderson, Morrison, Lymangood, Helliwell, and Granath ABSENT: None STAFF PRESENT: City Manager Johnson, Assistant City Manager Lueckert, Community Development Director Hurlburt, Public Works Director Moore, Park Director Blank, Public Safety Director Gerdes, Finance Director Hahn, Planning Supv. Senness, Fire Chief Kline, City Attorney Barnard, and City Clerk Rauenhorst ITEM 3-A FORUM - CONGRESSMAN ROD GRAMS Barb Sykora, a representative of Congressman Rod Gram's office, stated the Congressman is interested in Plymouth. She invited Councilmembers and citizens to contact him with concerns or issues. Mayor Tierney stated that unfunded mandates are of concern to the City. TTEM 4-A FUNDING FOR K-9 PROGRAM Public Safety Director Gerdes introduced representatives of the Plymouth Crime and Fire Prevention Association. They presented the City with a contribution of 7,150 to help support the newly authorized K-9 program. They explained how the money was raised and noted that the Association previously provided funding for bullet-proof vests for police officers. Mayor Tierney expressed the City's appreciation for this funding. ITEM 3-B FORUM - COUNCIL SALARIES Fred Lips, 14405 38th Avenue North, suggested that it may be less intimidating for residents if the Forum was again held before the meeting and not videotaped. Mr. Lips stated that the City Council has not increased their salaries for several years. He suggested that the salaries should be adjusted each year at least at the rate of Council Minutes March 7, 1994 Page 2 inflation. He stated that the number of study sessions and special meetings should also be considered when establishing the salary. Councilmember Helliwell stated the Plymouth Mayor and Council salaries are similar to comparable communities, and that no adjustment could become effective until after the next election. Mayor Tierney suggested that the Council consider whether salaries should be adjusted during budget discussions. ITEM 5 APPROVE AGENDA Mayor Tierney requested that items relating to the Plymouth Civic League and CDBG Funds be added to the agenda as Items 9-D and 9-E. MOTION was made by Councilmember Helliwell, seconded by Councilmember Granath, to approve the agenda with the addition of items 9-D and 9-E. Motion carried, seven ayes. ITEM 6 CONSENT AGENDA Items 6-A, 6-1, and 64 were removed from the Consent Agenda. MOTION was made by Councilmember Edson, seconded by Councilmember Granath, to approve the consent agenda as amended. Motion carried, seven ayes. ITEM 6-A APPROVAL OF MINUTES Manager Johnson stated that the draft minutes for the December 6, December 20, and January 3 Council meetings contain the transcripts which the Council requested on the Carlson Company items. Councilmember Lymangood stated that the transcripts contain a number of errors, and he would prefer that the regular minutes format be prepared by the City Clerk for the official minutes of those meetings. MOTION was made by Councilmember Lymangood, seconded by Councilmember Edson, to approve the minutes of the February 28 study session, to table the December 6, December 20, and January 3 minutes to the next meeting, and to request that staff prepare the regular summary minutes format for the Carlson Company portion of those minutes for Council consideration. Council Minutes March 7, 1994 Page 3 Councilmember Morrison recommended that any errors noted in the transcript should be forwarded to staff and maintained as part of the transcripts. Motion carried, seven ayes. ITEM 6-B APPROVE DISBURSEMENTS MOTION was made by Councilmember Edson, seconded by Councilmember Granath, to adopt RESOLUTION 94-119 APPROVING DISBURSEMENTS FOR THE PERIOD ENDING FEBRUARY 25, 1994. Motion carried, seven ayes. ITEM 6-C FUNDING FOR GLEASON LAKE PLAYGROUND EQUIPMENT MOTION was made by Councilmember Edson, seconded by Councilmember Granath, to adopt RESOLUTION 94-120 APPROVING FUNDING OF GLEASON LAKE PLAYGROUND IMPROVEMENTS. Motion carried, seven ayes. ITEM 6-D OPUS CORPORATION - PUD PRELIMINARY PLAN AND FINAL SITE PLAN FOR BASS CREEK BUSINESS CENTER PHASE 2 (94011) MOTION was made by Councilmember Edson, seconded by Councilmember Granath, to adopt RESOLUTION 94-121 APPROVING MPUD PRELIMINARY PLAN AMENDMENT AND FINAL SITE PLAN FOR OPUS CORPORATION LOCATED AT NATHAN LANE AND TRENTON LANE (94011). Motion carried, seven ayes. ITEM 6-E LUNDGREN BROS. CONSTRUCTION. PUD FINAL PLAN/PLAT FOR HEATHER RUN 2ND ADDITION (94016) MOTION was made by Councilmember Edson, seconded by Councilmember Granath, to adopt RESOLUTION 94-122 APPROVING RPUD FINAL PLAT AND DEVELOPMENT CONTRACT FOR LUNDGREN BROS. CONSTRUCTION COMPANY FOR HEATHER RUN 2ND ADDITION LOCATED AT THE NORTHEAST CORNER OF COUNTY ROAD 101 AND COUNTY ROAD 24 (94016) (RPUD 92-3). Motion carried, seven ayes. Council Minutes March 7, 1994 Page 4 MOTION was made by Councilmember Edson, seconded by Councilmember Granath, to adopt RESOLUTION 94-123 SETTING CONDITIONS TO BE MET PRIOR TO FILING OF THE RELATED RPUD FINAL PLAT FOR LUNDGREN BROS. CONSTRUCTION COMPANY FOR HEATHER RUN 2ND ADDITION LOCATED AT THE CORNER OF COUNTY ROAD 101 AND COUNTY ROAD 24 (94016) (RPUD 92-3). Motion carried, seven ayes. ITEM 6-F DESIGNATION OF ACTING CITY MANAGER MOTION was made by Councilmember Edson, seconded by Councilmember Granath, to adopt RESOLUTION 94-124 DESIGNATING ACTING CITY MANAGER IN ABSENCE OF CITY MANAGER. Motion carried, seven ayes. ITEM 6-G DEVELOPMENT CONTRACT BOND REDUCTIONS MOTION was made by Councilmember Edson, seconded by Councilmember Granath, to adopt RESOLUTION 94-125 REDUCING DEVELOPMENT BOND, SUNSET VALLEY HOMES ADDITION (87022). Motion carried, seven ayes. MOTION was made by Councilmember Edson, seconded by Councilmember Granath, to adopt RESOLUTION 94-126 REDUCING DEVELOPMENT BOND, EAGLEWOOD ADDITION (92110). Motion carried, seven ayes. MOTION was made by Councilmember Edson, seconded by Councilmember Granath, to adopt RESOLUTION 94-127 REDUCING DEVELOPMENT BOND, HERITAGE RIDGE PLAT TWO ADDITION (89036). Motion carried, seven ayes. Council Minutes March 7, 1994 Page 5 ITEM G -H CONSTRUCTION COOPERATIVE AGREEMENT, COUNTY ROAD 24, PROJECT 031 MOTION was made by Councilmember Edson, seconded by Councilmember Granath, to adopt RESOLUTION 94-128 CONSTRUCTION COOPERATIVE AGREEMENT - COUNTY ROAD 24, PROJECT NO. 031. Motion carried, seven ayes. ITEM 6-I FIRE RESCUE/HAZARDOUS MATERIAL TRUCK Fire Chief Kline and Firefighter Lonerrecommended that the Council award the bid for a fire rescue/hazardous material truck to General Safety Equipment Corp. They described the vehicle and stated that it would enhance rescue capabilities, allow for hazardous materials response, and provide for integrated emergency management. The apparatus has a useful life of 10 to 15 years. Councilmember Granath asked if this vehicle would be reserved exclusively for hazardous material situations or would be routinely used. Fire Chief Kline responded that the equipment would be used on a regular basis and would be the first piece of equipment to respond for major incidents. The vehicle would be used as a command center for police and fire emergency situations. In addition, hazardous materials and rescue specialization would be possible. Councilmember Anderson noted that the cost is approximately $235,000. He asked if staff considered sharing the vehicle with another community. Chief Kline stated Plymouth is currently sharing some facilities with Maple Grove. The City of Maple Grove has already purchased some specialized equipment, and this equipment would benefit both cities. Fire Chief Kline stated the trailer would be used to store and transport bulk supply materials associated with hazardous material operations. Public Safety Director Gerdes stated staff is recommending rejection of the trailer bid because a lower bid may be obtained for a more general piece of equipment. Councilmember Edson noted this is a replacement piece of equipment and funding would be from the Central Equipment Replacement Fund. Council Minutes March 7, 1994 Page 6 Mayor Tierney asked where the vehicle would be housed. Chief Kline stated it is proposed to be housed at Fire Station III. Firefighter Leuer explained that a committee of department members considered the needs for the truck. They attempted to not duplicate equipment available from surrounding communities and to recommend a multi-purpose vehicle that could be used by the police and fire divisions. MOTION was made by Mayor Tierney, seconded by Councilmember Morrison, to adopt RESOLUTION 94-129 AWARDING BID FOR FIRE RESCUE/HAZARDOUS MATERIAL TRUCK UNIT, and rejecting the material trailer. Motion carried, seven ayes. ITEM 64 RECEIVE PRELIMINARY ENGINEERING REPORT - HIGHWAY 55 NORTH FRONTAGE ROAD/SOUTH SHORE DRIVE, PROJECT 406 Councilmember Granath questioned the effect of the Preliminary Engineering Report on the Highway 55 North Frontage Road/South Shore Drive improvements. Public Works Director Moore explained that the Council ordered the Preliminary Engineering Report as the result of a petition received from Holiday Station Stores. Holiday has purchased the abutting Amoco site and is proposing to combine parcels and build a larger facility. The City has been concerned for several years about the safety of the Highway 55 and South Shore Drive intersection, as the existing frontage road access is immediately adjacent to Highway 55. The Report proposes that the frontage road would be moved back to the north property line of the Holiday property and the frontage road would be relocated between South Shore Drive and the restaurant property to the east of the Holiday Station. Councilmember Granath requested verification that there is no consideration of relocating the homes that abut the north side of the Holiday property. Director Moore stated that no right-of-way is needed from the properties to the north. Some right-of-way will be needed from the Holiday and the restaurant properties for relocation of the frontage road. He stated that the property owners to the north will be invited to the proposed public information meeting. Councilmember Granath asked how the project would be funded. Council Minutes March 7, 1994 Page 7 Director Moore stated that of the total $275,000 estimated project cost, about 114,000 is associated with the frontage road. About $30,000 is proposed to be assessed to Holiday for the frontage road improvements, and the balance is proposed to be paid from TIF funds. At this time, no other properties are proposed to be assessed for the improvements. Councilmember Granath noted that no noise wall is proposed in the Report and the staff report indicates that the existing fence would remain. He stated that the additional light and noise from a larger Holiday facility may necessitate additional protections for the abutting properties. Director Moore explained that this Report specifically addressed the noise from the frontage road. During the site planning process, Holiday will be required to meet lighting standards. Community Development Director Hurlburt stated that the noise and fencing issues can be addressed as part of the site planning process. Councilmember Granath clarified that the Council is only approving the Preliminary Engineering Report and the project has not yet been approved by the Council. MOTION was made by Councilmember Granath, seconded by Councilmember Lymangood, to receive the Preliminary Engineering Report for the Highway 55 North frontage road/South Shore Drive improvements, and to direct staff to hold a public information meeting with the adjacent property owners, including the residents of the properties immediately to the north of the proposed improvement. Motion carried, seven ayes. ITEM 7-A-1 VACATION OF EASEMENTS IN PARKERS LAKE CORPORATE CENTER 3RD ADDITION Public Works Director Moore presented the staff report on the request for vacation of drainage and utility easements in Lot 1, Block 1, Parkers Lake Corporate Center and Outlot C, Parkers Lake Corporate Center 3rd Addition. Mayor Tierney opened the public hearing on the vacation of drainage and utility easement for Lot 1, Block 1, Parkers Lake Corporate Center 3rd Addition at 7:46 p.m. No one appeared, and the hearing was closed. Council Minutes March 7, 1994 Page 8 MOTION was made by Councilmember Helliwell, seconded by Councilmember Edson, to adopt RESOLUTION 94-130 AUTHORIZING THE VACATION OF A PORTION OF DRAINAGE AND UTILITY EASEMENT IN LOT 1, BLOCK 1, PARKERS LAKE CORPORATE CENTER ADDITION. Motion carried, seven ayes. MOTION was made by Councilmember Helliwell, seconded by Councilmember Edson, to adopt RESOLUTION 94-131 AUTHORIZING THE VACATION OF A PORTION OF DRAINAGE AND UTILITY EASEMENT IN OUTLOT C, PARKERS LAKE CORPORATE CENTER 3RD ADDITION. Motion carried, seven ayes. MOTION was made by Councilmember Helliwell, seconded by Councilmember Edson, to adopt RESOLUTION 94-132 SETTING CONDITIONS TO BE MET PRIOR TO FILING OF RESOLUTION NO. 94-130 AND 94-131 VACATING A DRAINAGE AND UTILITY EASEMENT WITHIN LOT 1, BLOCK 1, PARKERS LAKE CORPORATE CENTER AND OUTLOT C, PARKERS LAKE CORPORATE CENTER 3RD ADDITION. Motion carried, seven ayes. ITEM 7-A-2 VACATION OF EASEMENT IN WILD WINGS 2ND ADDITION Public Works Director Moore presented the staff report on the request for vacation of drainage easement for ponding purposes in Outlot E, Wild Wings 2nd Addition. He stated that the existing drainage easement for ponding is not in the proper location for the Quail Hollow Addition. A blanket easement for ponding was dedicated over all of Outlot E with the final plat of the Wild Wings 2nd Addition because the exact delineation of the wetland was not complete. In response to a question by Councilmember Lymangood, he stated the area required for ponding will be dedicated on the final plat of Quail Hollow based on the DNR and Army Corps of Engineers' delineation of wetland boundaries. Mayor Tierney opened a public hearing on the vacation of a drainage easement for ponding purposes within Outlot E, Wild Wings 2nd Addition at 7:50 p.m. No one appeared, and the hearing was closed. MOTION was made by Councilmember Edson, seconded by Councilmember Morrison, to adopt RESOLUTION 94-133 AUTHORIZING THE VACATION OF A PORTION OF DRAINAGE EASEMENT FOR PONDING PURPOSES, OUTLOT E, WILD WINGS 2ND ADDITION. Council Minutes March 7, 1994 Page 9 Motion carried, seven ayes. MOTION was made by Councilmember Edson, seconded by Councilmember Morrison, to adopt RESOLUTION 94-134 SETTING CONDITIONS TO BE MET PRIOR TO FILING OF RESOLUTION NO. 94-133 VACATING A DRAINAGE EASEMENT FOR PONDING PURPOSES WITHIN OUTLOT E, WILD WINGS 2ND ADDITION. Motion carried, seven ayes. ITEM 8-A SET HEARING FOR WEST HEALTH CAMPUS BOND ISSUES Community Development Director Hurlburt presented the staff report on the request to set a public hearing on tax-exempt revenue bonds and taxable revenue bonds for the West Suburban Ambulatory Care Center and Medical Office Building Project. She stated the request has been amended so that the tax-exempt bond issue in the amount of $18.5 million would provide construction and permanent financing for the 50,000 sq. ft. Center providing outpatient medical and surgical services. The taxable bond issue in the amount of $17.5 million would provide construction and permanent financing for the 72,000 sq. ft. medical office building. The first phase of the project is under construction, and the bonds will be backed by both North Memorial and Abbott Northwestern, as well as municipal bond insurance. The City has no obligation for the repayment of the bonds. MOTION was made by Councilmember Helliwell, seconded by Councilmember Anderson, to adopt RESOLUTION 94-135 RELATING TO A PROJECT ON BEHALF OF HEALTHSPAN HEALTH SYSTEMS CORPORATION AND NORTH MEMORIAL MEDICAL CENTER, OR A SUCCESSOR NON-PROFIT CORPORATION TO BE FORMED, UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; CALLING FOR A PUBLIC HEARING THEREON. Motion carried, seven ayes. ITEM 8-B 1994 POLICE OFFICERS' LABOR AGREEMENT Assistant City Manager Lueckert described the proposed labor agreement with the Plymouth police officers. She stated a total 2.9 percent increase over the 1993 contract is proposed, which is within budget. Council Minutes March 7, 1994 Page 10 MOTION was made by Councilmember Helliwell, seconded by Councilmember Lymangood, to adopt RESOLUTION 94-136 APPROVING THE LABOR AGREEMENT BETWEEN THE CITY OF PLYMOUTH AND LAW ENFORCEMENT LABOR SERVICES, INC., LOCAL 18, JANUARY 1, 1994 THROUGH DECEMBER 31, 1994. Motion carried, seven ayes. ITEM 8-C 1994 POLICE SERGEANTS' LABOR AGREEMENT Assistant City Manager Lueckert described the proposed labor agreement with the Plymouth Police Sergeants. She stated a 2.7 percent increase over the 1993 contract is proposed, which is within budget. MOTION was made by Councilmember Edson, seconded by Councilmember Morrison, to adopt RESOLUTION 94-137 APPROVING THE LABOR AGREEMENT BETWEEN THE CITY OF PLYMOUTH AND PLYMOUTH SERGEANTS REPRESENTED BY LAW ENFORCEMENT LABOR SERVICES (LELS) FOR THE CALENDAR YEAR 1994. Motion carried, seven ayes. ITEM 8-D MEMBERSHIP IN THE I-494 CORRIDOR COMMISSION Planning Supervisor Senness recommended that the Council adopt a resolution approving Laws of Minnesota 1993, Chapter 230 authorizing the City to establish transportation demand programs, and authorize funds to join the I-494 Corridor Commission. She explained that several other communities and agencies affected by I-494 came together in the mid -1980's to conduct a study of the I-494 corridor with the intent of developing and implementing solutions to the traffic problems in the corridor. The study concluded that "a balanced approach between land development, travel demand, new roadway facilities, transit services, travel demand management and funding would be required" in order to achieve reasonable return on investment of the transportation dollars regarding I-494 and the road network that leads to and from I-494. The study concluded that a multi- faceted and coordinated approach involving both the public and private sectors would be required. Subsequent to the study, the private and public sectors each organized formal groups to address the growing travel demand issues in the corridor. Several major developers and employers in the corridor came together to form a transportation management organization to work for expansion of the freeway, as well as to encourage changes in travel behavior that would ultimately reduce traffic on I-494. Council Minutes March 7, 1994 Page 11 The cities of Bloomington, Eden Prairie, Edina, Minnetonka, and Richfield created the I-494 Corridor Commission which is a joint powers organization. The City of Maple Grove has also recently joined. With the exception of Plymouth, the commission's membership area now extends from the Minnesota River in Bloomington to I-94 in Maple Grove. She stated the purpose of the commission is to assist in efforts to 1) improve traffic conditions on I-494 by increasing the capacity of the freeway, 2) improve transit service, and 3) implement strategies for travel demand management programs. These programs essentially all focus on reducing the number of auto trips during the rush hours. The commission has been developing a model ordinance that will establish a transportation demand management program. Major reasons for enacting the ordinance include the continued growth in traffic congestion, the undesirable environmental effects that result from congestion, and the disruption that will occur in travel patterns when I-494 reconstruction begins. Before cities in the corridor could adopt a model ordinance, special legislation was required. In 1993, the Legislature adopted a special law that gives each of the cities in the corridor the authority to adopt a transportation demand management ordinance. However, the law will be considered disapproved if the affected cities do not file a resolution approving it before January, 1995. She stated the first phase of the ordinance affects employers with over 100 employees, but does not require the employers to do anything. All actions are voluntary. The first phase will continue until reconstruction begins on 1-494, currently anticipated in 2001. The commission will also be working with the Minnesota Department of Transportation to construct an interim high occupancy vehicle lane before freeway reconstruction begins. This lane would help ease the increased congestion problems that will occur once major reconstruction is underway. The second phase of the ordinance is mandatory for employers and would coincide with the initiation of freeway construction activities. However, each city would have to conduct a further hearing process at that time before the mandatory requirements could go into effect. Supv. Senness noted several advantages of Plymouth joining the I-494 Corridor Commission. She stated the membership cost is a $1,000 initiation fee and an annual contribution not to exceed $0.10 per capita, based on the most recent Metropolitan Council population estimates. At the present time, Plymouth's annual dues would be about $5,400. The City could pay this expense with travel demand management funds in the transit "opt -out" budget. Councilmember Helliwell asked if the Metropolitan Council could threaten not to approve extension of the urban area if the City does not become a member of this commission. Council Minutes March 7, 1994 Page 12 Supv. Senness stated the Metropolitan Council requires communities with congested corridors to prepare travel demand management strategies such as the commission is implementing. Failure to do so could jeopardize future requests for metropolitan urban service area (MUSA) expansions and approval of an interchange at I-494 and Schmidt Lake Road. Councilmember Helliwell stated she supports the work of this commission; however, she is concerned about the cost of $5,400 per year ($450 per month). She questioned if Plymouth would receive benefits from commission membership, particularly since reconstruction is not slated to begin until 2001. She suggested that volunteers could conduct the travel demand management program. Supv. Senness stated that membership in the commission could be beneficial to Plymouth. When the commission was originally established, there was no priority at the state level for improving I-494. It now has a very high priority for funding. She also noted that conducting a travel demand management program is time extensive and requires certain skills such as marketing and transportation background. She believes Plymouth would gain by having a person available through the commission to meet with Plymouth's larger employers. Councilmember Helliwell noted that improvement of transit service is also a priority of the commission. She asked if the commission lobbies the legislature on transit issues. She also opposes the per capita membership formula. Supv. Senness responded that the commission does not directly lobby the legislature on transit issues; however, they work closely with the Regional Transit Board and have been successful in obtaining additional routes. In response to a question by Councilmember Lymangood, Supv. Senness reported there are 15 to 20 employers in Plymouth who employee over 100 individuals who would be affected by the first phase of the project. Councilmember Lymangood noted there are other congested corridors in the City, such as Highway 169. He suggested that the City should consider a comprehensive approach to relieve congestion on all corridors - not only I-494. Councilmember Edson agreed that a comprehensive approach should be used. He would support some type of joint powers organization in order to be effective on the I-494 reconstruction, but believes the issue should be tabled until all corridors are considered. Mayor Tierney stated that other communities are already part of the commission and she feels Plymouth is late in joining. She suggested that the City should join Council Minutes March 7, 1994 Page 13 this commission and then consider the other corridors. She also noted that the staff indicates that the travel demand management program would be an eligible activity under the Regional Transit Board guidelines for use of opt -out funds. Councilmember Granath stated the City will receive benefits of membership and initiative and cooperation at the state level has already been achieved through work of the commission. He will vote to provide the time and money necessary for the membership because all cities cited in the enabling legislation are involved in the commission except Plymouth and the problems need to be addressed. Councilmember Morrison stated she is concerned about the intangible future benefits, but feel Plymouth's inclusion in this commission may help the City deal with future corridors. Councilmember Lymangood stated that Plymouth should not request a high occupancy lane during the construction of I-494. MOTION was made by Mayor Tierney, seconded by Councilmember Granath, to adopt RESOLUTION 94-138 APPROVING LAWS OF MINNESOTA 1993, CHAPTER 230, RELATING TO TRAFFIC DEMAND MANAGEMENT. Staff explained that this resolution allows Plymouth to take advantage of special legislation relating to travel demand management. There will be a future resolution provided to the Council to formally join the I-494 Corridor Commission. Motion carried: Anderson, Granath, Edson, Morrison, and Tierney ayes; Lymangood and Helliwell nays. MOTION was made by Councilmember Edson, seconded by Councilmember Anderson, to table the issue of Plymouth's membership in the I-494 Corridor Commission until the joint powers agreement is signed. The Council also will discuss comprehensive issues of traffic congestion in the City's corridors at a future study session. Motion carried, seven ayes. ITEM 9-A BOARD AND COMMISSION VACANCIES MOTION was made by Mayor Tierney, seconded by Councilmember Lymangood, to direct staff to contact the 1993 applicants for the Board of Zoning and Human Service agencies to determine if they are interested in being considered for appointment to the vacancies on those boards, and to table the appointments to March 21. Council Minutes March 7, 1994 Page 14 Motion carried, seven ayes. ITEM 9-B 1993 UNAUDITED FINANCIAL REPORT Finance Director Hahn presented the 1993 unaudited financial report. He stated the overruns from permit fees ($284,061) and Current Services ($85,281) helped offset the large property tax shortfall of $479,618 caused by the large amount of tax cancellations and abatements. He stated that 1993 was a catch-up year for tax cancellations and abatements. In 1991, the County closed on 120 tax court petitions with value reductions in the amount of $29,746,400 or 13.8 percent. In 1992, 64 tax court petitions were closed resulting in value reduction of 16,354,300 or 10 percent. There are now 239 cases pending. The market value of these 239 parcels is $480,055,800. If the City loses 22 percent of this market value in tax court, it would mean a potential reduction of approximately $550,00 to $600,000 in taxes in 1994 should all cases be closed by the end of the year. He stated there was considerable savings from the budgeted expenditures in 1993, with the exception of Legal, in a total amount of $404,076. He stated the projected balance of the General Fund as of December 31, 1993, is $5,303,337. The City has typically attempted to maintain a balance in the amount of 40 percent of the General Fund. This projected balance is $435,394 over the desired 40 percent. Director Hahn stated that during consideration of the 1994 budget, staff recommended using the surplus fund balance over 40 percent for: in-house engineering equipment, pay -down on the 1987 Fire station bonds, tax cancellations and abatements, and 1980 Storm Sewer Bonds. Based on the unaudited financial report information, Director Hahn recommended that the projected fund balance surplus of $435,000 be appropriated for: in-house engineering equipment 73,000), 1987 Fire station bonds - 1994 only ($50,000), and tax cancellations and abatements ($312,000). Director Hahn briefly described other funds in the City. He noted one fund of concern is the Sewer Fund which continues to run at a deficit. He recommended that the Council consider a potential rate increase because new environmental concerns could affect chemicals and processing, and drive the costs even higher. Councilmember Lymangood stated he would like to see an option where the Fire Station bonds could still be paid, rather than only payment of the 1994 portion. This would have a positive impact on future levies. He would like the Council to consider payment of callable bonds that are outstanding. Director Hahn stated the Council could consider internal financing to pay off other bonds. . Council Minutes March 7, 1994 Page 15 Mayor Tierney asked if it is unusual for a city to retain a balance in the amount of 40 percent of the General Fund. Director Hahn stated no. The cities of Brooklyn Park and Minnetonka retain a 60 percent balance. Director Hahn stated he had not anticipated that the General Fund surplus would be quite as much as it was. He had expected there would be some overrun with the increased permit revenues, but didn't expect expenditures to be under budget by nearly all departments. Personnel vacancies in some departments accounted for a portion of the reduced expenditures. Chris Slack, 2135 Weston Lane North, stated that at the December 1 Truth in Taxation public hearing, the staff estimated a $500,000 surplus; whereas, he estimated a $1 million surplus for 1993. He stated that his figure was quite accurate given that at that time there was no knowledge of the abatements and cancellations. He also stated that about $200,000 to $300,000 surplus was built into the 1994 budget because the 1993 budget figures were used. Mr. Slack stated the equipment costs for in-house engineering should be part of the normal budget, and should not be paid from surplus. He also noted that the staffs recommendation on how to spend the projected surplus changed during the budget hearings. He noted that the Council adopted resolutions adopting the 1994 budget and the tax levies in December, 1993. He believes that if the Council changes the disbursement of the surplus from what was presented during the Truth in Taxation hearings, it will constitute a change to the levy and budget. He recommended that the surplus be disbursed as recommended during the Truth in Taxation hearings held in December, 1993. He requested that the Council not approve resolutions tonight which would fund in-house engineering equipment, but rather fund the equipment through cost savings in new/replacement capital budgets. He further recommended that the potential abatement shortfall be funded through expense reductions and improved efficiencies, and that the reductions be accomplished without reduced services. Mr. Slack suggested that a detailed quarterly financial performance reporting process be implemented, and he provided examples of reports on staffing levels, expenditures, and capital performance. He stated that performance reports should be provided for the in-house engineering functions, committed patrol time, financial analyst position, and ways of the City saving money. Councilmember Anderson thanked Mr. Slack for his presentation and stated that quarterly financial performance reports, similar to those presented, would be helpful to the Council. Council Minutes March 7, 1994 Page 16 Councilmember Edson stated the Council receives quarterly financial information, but it should be easier to understand and more meaningful in helping the Council track trends throughout the year. Mr. Slack thanked the Finance Director and staff for providing him with information. Finance Director Hahn agreed that these types of reports would provide better trend information to the Council. He stated staff is making an effort to prepare these types of reports this year. Councilmember Edson stated he had understood that the in-house engineering equipment was included as a budgeted item. Manager Johnson stated it was one of the proposed uses for the anticipated surplus funds. Finance Director Hahn stated it is not critical that the Council determine the allocation of the entire surplus at this time. However, the Council should address the 1987 Fire Station bonds, since no taxes were levied to cover that 1994 bond payment which is due in March. Councilmember Lymangood noted that earlier in the evening the Council approved a fire vehicle purchase which was $60,000 under budget. He asked if those remaining funds could be used from the Capital Budget to pay the 1987 Fire Station bonds current year payment. Finance Director Hahn stated the funds for the fire vehicle were allocated from the Central Equipment Fund which has been reserved by previous Council policy only for the replacement of equipment. Councilmember Edson suggested that the Council approve payment of the 1987 Fire Station bonds current year due from the surplus, and consider what to do with the remaining surplus balance following discussion of the Capital Improvement Program (CIP) and study of the various funds. MOTION was made by Councilmember Edson, seconded by Councilmember Anderson, to adopt RESOLUTION 94-139 TRANSFERRING FUNDS FROM THE GENERAL FUND TO THE GENERAL OBLIGATION DEBT SERVICE FUND, and to direct staff to provide a recommendation on allocation of the remainder of the 1993 surplus. Motion carried, seven ayes. Council Minutes March 7, 1994 Page 17 ITEM 9-C CITY MANAGER EVALUATION SUMMARY AND Mayor Tierney reported that the City Council conducted performance evaluation sessions with the City Manager. She stated that under the City Manager's employment contract, his base salary in the agreement was to be increased by a cost of living amount and tied with the general increase for other City employees which is 2.75 percent. In light of the employment agreement, the Council discussed an additional amount of $1,750 based on performance. MOTION was made by Mayor Tierney, seconded by Councilmember Lymangood, to adopt RESOLUTION 94-140 ESTABLISHING THE ANNUAL SALARY OF THE CITY MANAGER as $86,566 effective February 1, 1994, with the next evaluation to be held in August, 1994. Councilmember Helliwell stated she will abstain on this issue as she was not able to attend either evaluation session. Councilmember Lymangood stated that the City Manager was gracious in not requesting the first $1,750 in 1993 due to the sensitivities surrounding staff salaries. He appreciated the evaluation session, but suggested that the August evaluation may be better using a different process. He suggested that a survey of employees be considered for the August evaluation, and hopes that there is a new attitude among staff members. Councilmember Anderson stated Manager Johnson has brought a sense of stability and competence to the City. Councilmember Granath stated the evaluation conducted by the Council was positive in content and process, and City staff had some input in the evaluation. Motion carried, six ayes; Helliwell abstained. ITEM 9-D REQUEST OF PLYMOUTH CIVIC LEAGUE Mayor Tierney stated the Plymouth Civic League has written a letter to the City expressing frustration in the reduced number of Civic League memberships they are receiving. She stated the organization co-sponsors Music in Plymouth and Fire and Ice, and they are looking for assistance with advertising. Manager Johnson stated the City utility bills were amended several months ago so it is now difficult to put messages on the bills. He suggested that the issue be tabled to March 21 so staff can investigate Council policies that may impact the City's participation in advertising and provide a recommendation. Council Minutes March 7, 1994 Page 18 Councilmember Helliwell explained some of the costs of the events sponsored by the Plymouth Civic League. She stated that the recent park and recreation survey indicated that Music in Plymouth is the most well -attended event in Plymouth, and the City needs to continue to support it. Councilmember Lymangood stated there may be other groups that will request the same type of assistance from the City, such as the Plymouth Crime and Fire Prevention Association, so the staff report should encompass these types of requests in general. Mayor Tierney stated the Plymouth Civic League has a pressing deadline for the 1994 Music in Plymouth so perhaps the Council should address this sole request and later consider other groups. Chris Slack, 213 5 Weston Lane North, recommended that the Council not place itself in the position of choosing which groups should receive City publicity and assistance. The Council directed staff to provide a report and recommendation on the request of the Plymouth Civic League on March 21. ITEM 9-E COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS Mayor Tierney referenced a staff report contained in the Council Information Memo and asked why there are unspent Community Development Block Grant CDBG) Funds. Community Development Director Hurlburt stated that the City previously received its CDBG money through Hennepin County. When Plymouth became an entitlement City, it began receiving its allocation directly from HUD. The City had a large fund balance at that time as the City had never spent those funds as quickly as they were allocated. She stated that HUD has continued to express concern about the unspent balance, and the City is going to have difficulty spending the funds as quickly as needed given the lack of staffing and with the senior citizen project underway. She stated this issue will be considered by the Housing and Redevelopment Authority at its next meeting. Councilmember Edson stated that part of the large surplus is the result of a 140,000 expenditure for South Shore Park, which was not disbursed because of a delay by HUD. The City incurred the expenses, but it took 1 1/2 years for HUD tc determine it was an allowable allocation of CDBG Funds. He stated that the HRA has requested a list of projects being done in other cities with CDBG funds so the HRA can determine if there are opportunities to use the funds in Plymouth. He Council Minutes March 7, 1994 Page 19 stated that one option may be a program to match up seniors moving out of their homes with first-time homebuyer program. Director Hurlburt stated the City has been given about six months by HUD to allocate the funds. Councilmember Lymangood requested copies of the letters that have been exchanged between the City and HUD on this issue, as referenced in the staff report. Manager Johnson stated that he believes the City does not have enough staff working on the CDBG program. He stated that staffing needs to addressed to avoid this problem from continuing in the future. Councilmember Edson stated the HRA has tried to limit the amount of CDBG funds spent on program administration in order to keep the money working in the community. However, it may not be to the City's advantage to keep the administrative costs so low because of the funds that could be lost for use in the City. MOTION was made by Mayor Tierney, seconded by Councilmember Lymangood, to adjourn the meeting at 10:02 p.m. City Clerk