City Council

City Council Meeting Minutes

Regular Meeting

December 21, 2009

1.         Roll Call

Mayor Klausing called to order the Roseville City Council regular meeting at approximately 6:00 pm and welcomed everyone.

(Voting and Seating Order for December: Johnson; Roe; Ihlan; Pust; and Klausing)

Councilmember Pust arrived at approximately 6:08 pm.  City Attorney Scott Anderson was also present.

2.         Approve Agenda

Councilmember Roe requested removal of Consent Item 7.j entitled, “Order Feasibility Report for the Rice Street / TH 36 Bridge Reconstruction.”

Councilmember Ihlan requested removal of Consent Items 7.h, i and m, respectively entitled, “Approve a Request by the City of Roseville in cooperation with Hagen Ventures, LLC for approval of a Registered Land Survey (PF09-034);” “Adopt a Resolution Approving the Request by RECO Real Estate, LLC for Outdoor Storage as an Interim Use at 1705 County Road C (PF09-025);” and “Approve Wireless Lease Agreement for Clearwire LLC at Reservoir Woods Tower, 1901 Alta Vista.”

Councilmember Ihlan suggested moving the Budget discussions (under Business Item 12) earlier in the agenda.

Mayor Klausing advised that further agenda amendments could be considered depending on the timing of various presentations.

By consensus, the agenda was approved as amended.

3.         Public Comment

Mayor Klausing called for public comment by members of the audience on any non-agenda items.  No one spoke.

4. Council Communications, Reports, Announcements and Housing and Redevelopment Authority (HRA) Report

City Manager Malinen advised that the City had received word that Representative McCollum’s efforts on behalf of the City’s funding request for Phase II of Twin Lakes infrastructure improvements had received positive support through Conference Committee and appeared to be moving forward.  City Manager Malinen thanked staff for coordinating efforts through Senator McCollum’s office.

Councilmember Pust arrived at 6:08 pm.

Mayor Klausing echoed City Manager Malinen’s congratulations to staff for their efforts.

Councilmember Roe announced the recent grand opening of the Metropolitan Transit Park and Ride facility in the Twin Lakes area and encouraged the public to take advantage of this opportunity.

5.         Recognitions, Donations, Communications

6.         Approve Minutes

a.                 Approve Minutes of December 7, 2009 Regular Meeting

City Manager Malinen noted that staff would work with City Attorney Anderson to provide a summary report from the Executive Session held on December 7, 2009 immediately following the regular business session for separate review and approval at a later date.

Johnson moved, Roe seconded, approval of the minutes of the December 7, 2009 Regular Meeting as presented.

Roll Call

Ayes: Johnson; Roe; Ihlan; Pust; and Klausing.

Nays: None.

7.                 Approve Consent Agenda

There were no additional changes to the Consent Agenda than those previously noted.  At the request of Mayor Klausing, City Manager Bill Malinen briefly reviewed those items being considered under the Consent Agenda.

a.                 Approve Payments

Pust moved, Johnson seconded, approval of the following claims and payments as presented.

Roll Call

Ayes: Johnson; Roe; Ihlan; Pust; and Klausing.

Nays: None.

b.                 Approve Business Licenses

          Pust moved, Johnson seconded, approval of business license applications for the period of one year, for the following applicants:

Roll Call

Ayes: Johnson; Roe; Ihlan; Pust; and Klausing.

Nays: None.

c.                  Approve General Purchases or Sale of Surplus Items Exceeding $5,000

Pust moved, Johnson seconded, approval of general purchases and/or contracts as follows:

Roll Call

Ayes: Johnson; Roe; Ihlan; Pust; and Klausing.

Nays: None.

d.                 Authorize Request for Proposals (RFP) for Print Services

Pust moved, Johnson seconded, authorizing the City of Roseville to issue a Request for Proposals (RFP) for printing services.

Roll Call

Ayes: Johnson; Roe; Ihlan; Pust; and Klausing.

Nays: None.

e.                 Receive Quarterly Shared Services Report

Pust moved, Johnson seconded, acceptance of the December 2009 Quarterly Shared Services Update as prepared by staff.

Roll Call

Ayes: Johnson; Roe; Ihlan; Pust; and Klausing.

Nays: None.

f.                   Receive Quarterly Imagine Roseville 2025 Update

Pust moved, Johnson seconded, acceptance of the December 2009 Update of the Imagine Roseville 2025 Medium and Long-term Goals as prepared by staff.

Roll Call

Ayes: Johnson; Roe; Ihlan; Pust; and Klausing.

Nays: None.

g.                 Approve Contract for Ramsey County Environmental Response Fund Grant

Pust moved, Johnson seconded, approval of a contract between the City of Roseville and Ramsey County for the $30,000 Environmental Response Fund grant, as detailed in Attachment A of the Request for Council Action dated December 21, 2009.

Roll Call

Ayes: Johnson; Roe; Ihlan; Pust; and Klausing.

Nays: None.

k.                  Approve Cost Share Agreement with Capitol Region Watershed District

Councilmember Ihlan clarified that there was sufficient funds in the stormwater account for the City’s share of the cost for this pumping station.

Public Works Director Duane Schwartz advised that this was anticipated in the Capital Investment Plan (CIP) for future expenditure, not necessarily anticipated for funding this soon; however, he noted that there was adequate funding at this time.  Mr. Schwartz further advised that the Capitol Region Watershed District had excess grant funds available this year; and since Roseville share of the project represented 60% of the total, it was to the benefit of Roseville, as well as the City of Falcon Heights, to take advantage of those grant dollars currently available.

Pust moved, Johnson seconded, approval of a Joint Powers/Cost Share Agreement between the City of Roseville and Capitol Region Watershed District for stormwater pumping station capacity upgrades; as detailed in Attachment A to the Request for Council Action dated December 21, 2009.

Roll Call

Ayes: Johnson; Roe; Ihlan; Pust; and Klausing.

Nays: None.

l.                    Adopt a Resolution to Authorize Final Payment on the 2009 Sanitary Sewer Lining Project

Pust moved, Johnson seconded, adoption of Resolution No. 10769 entitled, “Final Contract Acceptance – 2009 Sanitary Sewer Lining Project;” accepting the work completed, starting the one-year warranty, and authorizing final payment of $197,571.20.

Roll Call

Ayes: Johnson; Roe; Ihlan; Pust; and Klausing.

Nays: None.

n.                 Authorize the City Manager to execute the Master Subscriber Agreement for Minnesota Court Data Services

Pust moved, Johnson seconded, authorizing the City Manager to sign the Master Subscriber Agreement for Minnesota Court Services;” as detailed in Attachment A of the Request for Council Action dated December 21, 2009.

Roll Call

Ayes: Johnson; Roe; Ihlan; Pust; and Klausing.

Nays: None.

8.         Consider Items Removed from Consent

m.               Approve a Request by the City of Roseville in cooperation with Hagen Ventures, LLC for approval of a Registered Land Survey (PF09-034) (Former Consent Item 7.h)

At the request of Mayor Klausing, City Manager Bill Malinen briefly reviewed this request as detailed in the Request for City Council Action dated December 21, 2009; related to the Registered Land Survey (RLS) for new property descriptions resulting from the City’s pending purchase of right-of-way necessary for Twin Lakes Parkway.

Councilmember Ihlan questioned the cost of the survey and who was paying those costs.

Community Development Director Patrick Trudgeon advised that the total cost was estimated to be $4,900, which would be paid through Tax Increment Financing (TIF) District 17; and would be the City’s cost for the subdivision, and would not be shared with Hagen Ventures, LLC.

Councilmember Ihlan advised that she would vote against the motion; opining that this was related to the $1 million acquisition of property expending public monies with no immediate need for its purchase.  Councilmember Ihlan further opined that, while the property may be needed in the future, the money should be spent at that time rather than paying money to a private developer and then leasing the property back to the private party for $1 per year; none of which was in the public interest or an appropriate use of TIF.

Klausing moved, Roe seconded, approval of the proposed Registered Land Survey (RLS) for the City of Roseville and Hagen Ventures, LLC, affecting property at 2805 – 2823 Fairview Avenue; based on the comments of Section 4 of the Request for Council Action dated December 21, 2009.

Councilmember Roe spoke in support of the motion; as an action necessary to complete the property acquisition; and based on his original support of the purchase of the property; opining that it was advantageous for the City to purchase the land based on the current market place and timing requirements in acquiring the land; and noted that TIF funds were available for this infrastructure use.

Roll Call

Ayes: Johnson; Roe; Pust; and Klausing.

Nays: Ihlan.

Motion carried.

n.                 Adopt a Resolution Approving the Request by RECO Real Estate, LLC for outdoor storage as an Interim Use at 1705 County Road C (PF09-025) (Former Consent Item 7.i)

At the request of Mayor Klausing, City Manager Bill Malinen briefly reviewed this request as detailed in the Request for Council Action dated December 21, 2009; for outdoor storage as an INTERIM USE.

City Manager Malinen noted that this item had previously been before the City Council at their October 26, 2009 meeting; and at that time it was suggested by Councilmembers that an INTERIM USE, rather than the proposed Conditional Use was more appropriate.  City Manager Malinen advised that, the Planning Commission held a subsequent public hearing, and concurred unanimously.

Councilmember Ihlan spoke in support of the INTERIM USE rather than a Conditional Use, noting her previous concerns for a permanent outdoor storage use in that area indefinitely.

Mr. Trudgeon noted that similar conditions to those proposed in the Conditional Use were carried forward as a condition of the INTERIM USE, with the only distinction being Condition D indicating an expiration date of the use.

Ihlan moved, Klausing seconded, adoption of Resolution No. 10770 entitled, “A Resolution Approving Outdoor Storage of Boats at 1705 County Road C as an Interim Use in Accordance with Roseville City Code, Section 1012.09, for RECO Real Estate, LLC (PF09-025);”

Roll Call

Ayes: Johnson; Roe; Ihlan; Pust; and Klausing.

Nays: None.

o.                 Order Feasibility Report for the Rice Street/TH 36 Bridge Reconstruction (Former Consent Item 7.j)

At the request of Mayor Klausing, City Manager Bill Malinen briefly reviewed this request, as detailed in the Request for Council Action dated December 21, 2009; with Ramsey County moving forward with the project, in partnership with the Cities of Roseville, Maplewood and Little Canada; with a portion of the City of Roseville’s improvements contemplated as potential assessments to adjoining property owners, in accordance with Minnesota State Statutes, Chapter 429.

Councilmember Roe sought clarification on the scope of the Feasibility Study; whether it would relate only to the City’s portion to be assessed, or for the whole project, the anticipated cost of the Study and cost allocations.

Mr. Schwartz advised that the Feasibility Study would relate only to the City’s portion of the proposed improvements, with approximately half of those costs for water main replacement; and the remainder for aesthetic improvements (i.e., lighting on the bridge; pedestrian and bicycle improvements); with the cost of the study anticipated at less than $5,000 and eligible for funding through State Aid funds.

Roe moved, Johnson seconded, adoption of Resolution No. 10771 entitled, “Resolution Ordering Preparation of Feasibility Report for Rice Street / TH 36 Bridge Reconstruction Project (Attachment A).”

            Roll Call

Ayes: Johnson; Roe; Ihlan; Pust; and Klausing.

Nays: None.

p.                 Approve Wireless Lease Agreement for Clearwire LLC at Reservoir Woods Tower, 1091 Alta Vista (Former Consent Item 7.m)

At the request of Mayor Klausing, City Manager Bill Malinen briefly reviewed this item, as detailed in the Request for Council Action dated December 21, 2009; noting that the City had three towers on which it leased communication antenna; with staff having reviewed and negotiated space, as detailed in the lease agreements attached to the report.  Mr. Malinen noted that there was a benefit to the City with an additional revenue source with the City receiving approximately $19,000 per year for those leases; and automatic leases incorporated in the lease agreements, with revenue allotted to the City’s Information Technology functions.

          Councilmember Ihlan sought clarification as to whether this was an existing tower; and whether there would be any expansion in height or width required.

          City Manager Malinen clarified that it was an existing tower and that no height or width expansion would be necessary.

Klausing moved, Ihlan seconded, approval of the lease agreements between the City of Roseville and Clear Wireless, LLC, for leased space at the Alta Vista Communications Towers;” as detailed in Attachment A of the Request for Council Action dated December 21, 2009.

Councilmember Johnson sought background information on development of a policy that money from these leases and/or towers was allocated to the City’s IT functions; the origin of such a policy and rationale behind the policy.

City Manager Malinen advised that staff would research that information and provide it to the City Council.

Mayor Klausing noted that the original placement of this specific tower had allowed the City to acquire the Reservoir Woods Park from St. Paul Regional Waterworks.

Councilmember Ihlan asked that staff’s future report be expanded to include a revenue report on how much revenue from the Joint Powers Agreements (JPAs) went into the IT Department budget.

Roll Call

Ayes: Johnson; Roe; Ihlan; Pust; and Klausing.

Nays: None.

9.                 General Ordinances for Adoption

10.             Presentations

a.     Presentation regarding the 2010 Census by Partnership Specialist Ryan Dolan

Ryan Dolan, Partnership Specialist, 2010 Census

Mr. Dolan reviewed the history and preparation of the U. S. census, and advocated the City Council’s and public’s assistance in participation in the 2010 census.  Mr. Dolan reviewed the simplified 2010 census; it’s importance; and need to understand how crucial it was to the state and county in apportioning funding from the Federal Government to states and counties and their subdivisions; and reapportionment of the State’s representation in the House of Representatives.

Mr. Dolan discussed the challenges faced in the 2010 census due to foreclosures and trying to locate people; the need to make respondents comfortable in understanding their protections in completing the census; the large student population in Roseville presenting another challenge; and stressed the confidentiality of the census for both citizens and non-citizens.

Mr. Dolan reviewed the proposed timing of the census; and advised that jobs remained available for anyone interested, both full or part-time; and encouraged those listening to call 1-866-861-2010 for more information about a job.

Mr. Dolan asked that the City consider hosting “Be Counted” questionnaires and forms for residents; in addition to other promotional materials available for use by distribution and/or for the City’s website.  Mr. Dolan encouraged the City to form “Complete Count” committees to encourage residents to complete their census forms.

Discussion among Councilmembers and Mr. Dolan included the City’s willingness to assist in getting full participation for the census; and the availability of drop-in articles for use on the City’s website, as well as links (census.gov.2010census).

At this time, after a brief discussion and by consensus, Mayor Klausing further amended tonight’s agenda to discuss and take action on Business Items 12.a – c related to the 2010 Budget and Levy. 

12.             Business Items (Action Items)

Finance Director Chris Miller noted that the City Council was requested to adopt four 2010 levy and budget-related resolutions at tonight’s meeting, as detailed in the Request for Council Action dated December 21, 2009.  Mr. Miller reviewed rationale for the City Manager-recommended budget; permanent spending reductions from 2003 to present; budget variances for property tax-supported programs from those adopted for the 2009 budget; and reinstatement of $40,000 to the Park Improvement Program (PIP) and reinstatement of the outdoor ice skating rinks since previous discussions.

Mr. Miller highlighted the challenges in developing a budget in the current economic downturn; past budget actions putting the City on an unsustainable financial path; and past reliance on the City’s cash reserves to address budget gaps in seven of the last eight years; in addition to loss of state aid and reduced interest earnings.  Mr. Miller reviewed proposed appropriations to advance forward to adequately fund the replacement programs for the City’s rolling stock and equipment; and new contractual obligations and mandates in 2010 totaling $1.4 million in new obligations.  Mr. Miller advised that the proposed budget, while not perfect, funded the City’s core programs, as supported by the community, and represented a responsible budget.

City Manager Malinen concurred with Mr. Miller, noting that the process had been different and challenging this year, as well as somewhat frustrating; however, he offered encouragement as the City progressed with the Budgeting for Outcomes (BFO) process from 2010 onward, it would become a more refined and better process; allowing the City Council and public to better identify costs of programs and services, and would prove beneficial to the City, staff and City Council.  Mr. Malinen noted that the recommended budget represents monies essentially committed and not within the City’s control; and that no new programs or expenses were added for 2010; with the City actually reducing its operating budget to provide additional funding for those obligations.  Mr. Malinen expressed appreciation to the City’s Department Heads and their staff for their creativity and willingness to bring the City toward a more sustainable budget in the future.

Councilmember Roe thanked Mr. Miller and Mr. Malinen for their comprehensive work on the proposed budget; and asked that they briefly address their recommended adjustments in both structural and non-structural or temporary categories.

Discussion included the $400,000 reductions taken in the spring of 2009 from tax-supported budgets to address unallotment by the State of tax-supported funds, those of a permanent nature and those only temporary and impacts to program and service levels in various departments and for the community and detailed in Attachment F (Exhibits A and B).

Councilmember Ihlan sought the total proposed levy dollar amount for 2010 for the City and the HRA combined as compared to the 2009 total amount to calculate the proposed percentage levy increase.

Mr. Miller advised that the levy dollar amount proposed for both the City and HRA combined would total $14,653,500, an increase of $1,256,640 or a 9.4% levy increase from 2009.

Public Comments

Carol Sletner, resident of Roseville

Ms. Sletner spoke in support of a budget that maintained or possibly improved upon current service levels.  Ms. Sletner advised that she had high expectations of the City’s public safety departments for prompt, efficient and effective public safety services for 9-1-1; safe streets that were cleared of snow; adequate water and sewer services; regular upkeep of recreational areas; and support for other areas of the City (i.e., Finance, Administration, and Community Development) to ensure the City’s progress and to keep it running smoothly. While understanding the current economy, Ms. Sletner offered her support of a minimal tax increase to facilitate efficient and effective local government services.

Councilmember Ihlan noted statements made in the Request for Council Action related to increases for typical homeowners and assumptions made on those property values actually declining, while not applicable to all taxpayers.  Councilmember Ihlan referenced information provided at a previous meeting by resident Dick Lambert on the ability of residents to pay higher taxes based on stagnant wages or loss of jobs in the community.  Councilmember Ihlan reiterated that the proposed tax levy was recommended to increase by 9.4% from 2009 and sought to make that clear to taxpayers, opining that it had not been very clear in the process to-date.

Adopt Resolutions Approving the 2010 Final Tax Levy, 2010 Final Budget and 2010 Final Debt Levy

Klausing moved, Johnson seconded, adoption of Resolution No. 10772 entitled, “Resolution Submitting the Final Property Tax Levy on Real Estate to the Ramsey County Auditor for the Fiscal Year of 2010;” in the amount of $14,300,000.

Councilmember Ihlan expressed frustration that on pages 2 and 3 of the Request for Council Action (RCA), the chart listed elections in 2010 as a new expenditure when it was a given expense in even years and should not be indicated as a new expense to justify increased taxes.

Mayor Klausing noted that election funds in the 2009 budget had been removed to reduce the budget; thus the increase for 2010.

Councilmember Ihlan opined that this shouldn’t be done in future years.

Councilmember Ihlan requested an explanation of the additional $12,500 in legal fees from 2009.

City Manager Malinen advised that this represented an adjustment from that budgeted for 2009.

Councilmember Ihlan opined that an agreement should be negotiated to maintain legal costs at current levels.

Councilmember Ihlan requested further clarification on park maintenance and depreciation and whether this represented any reduced positions.

Mr. Miller advised that there was no additional funding for existing positions that were already filled; however, it was proposed to leave certain positions vacant for the present time.

Further discussion included other staffing positions identified on pages 1 and 2 of the RCA and impacts to various departments; reinstatement of the outdoor skating rinks; and previous actions taken in the spring of 2009 to address the reduced state funding of $400,000.

Councilmember Ihlan requested information on how the additional internal loan in the amount of $490,000 could be removed as a tax-supported obligation, since it represented a significant portion of the proposed increase, possibly by using reserves.

Mr. Miller advised that it was the use of reserves that necessitated that $490,000 annual expense; with the City taking measures in early 2001 to pay off bonds early, by using reserves, with additional levy dollars set aside, resulting in substantial annual savings.  However, Mr. Miller noted that as a result, this internal loan (from the Pavement Management Fund) was being repaid, with the last payment scheduled for 2010, relieving that obligation in the 2011 budget.  Mr. Miller suggested that, if the City Council chose not to refund funds earmarked for this street replacement fund, it would weaken the City’s position, and a policy discussion may be prudent.  Mr. Miller advised that, if the final payment is made in 2010, the PMP will be returned to its 2000 status.

Further discussion included the status of the City’s reserve funds, down between $8 – 10 million, with a fraction due to the economy and reduced interest income, and the majority from utility improvements and spending down of those reserves; and whether taxpayers would be in a better position in 2010 or 2011, based on the economic recovery, for additional tax burdens.

Councilmember Roe sought clarification whether the $490,000 appeared on the 2008/2009 budget summary; and whether this was an increase in what taxpayers were being asked to pay. 

Mr. Miller responded that this internal loan had been in place for eight years and was a continuation of past budget cycles; with the same $490,000 payment applied annually throughout those years; and that this was not something contributing to this year’s proposed increase.

Councilmember Pust noted that this was an expense that the City could control, since it was an internal loan.

Amendment

Ihlan moved, Pust seconded, to defer the $490,000 payment for the internal loan; and to bring it up again for the 2011 budget for reconsideration; thereby reducing the proposed budget and levy by $490,000.

Councilmember Ihlan spoke in support of the motion, since it was an internal transaction; and opined that it would be appropriate to defer payment for one year and thereby reduce the levy by that amount.

City Manager Malinen, while recognizing the purpose of the proposed amendment, asked the City Council to hear from the City’s Public Works Director Duane Schwartz on potential impacts to the City’s street reconstruction and maintenance program.

Mayor Klausing spoke in opposition to the motion; expressing his perception of the irony in Councilmember Ihlan expressing concern and frustration to increase funding for the 2010 election, when she was the one voting for the motion to eliminate funding in 2009 in an effort to balance the budget at that time.  Mayor Klausing questioned whether 2011 would see the economy improving substantially; and opined that not taking action at this time only shifted the problems onto future City Councils, taxpayers and generations.  Mayor Klausing further opined that the proposed amendment was not fair to the community or represented a good long-term policy.

Public Works Superintendent Duane Schwartz, addressing impacts to the PMP, advised that since expenditures to this fund came from interest earnings, not the principal, not bringing it back to full funding would reduce the City’s ability to provide adequate projects to keep the pavement index levels where they should be.

Mayor Klausing noted that previous City Councils had established the PMP fund precisely to avoid major expenses to its taxpayers and to spread out reconstruction and maintenance costs.

Councilmember Pust spoke in support of the motion, anticipating economic recovery in 2011.  Councilmember Pust reviewed the three proposed pieces in the budget needed to put the City’s financial house back in order; and her overall support in doing so.  However, Councilmember Pust opined that this wasn’t the year to accomplish it all; and that the majority of the problem is due to state actions, not based on the stupidity of the City Council. 

Councilmember Roe noted that this was a new consideration for him, and that he formulated his point of view based on tonight’s discussion.  Councilmember Roe spoke in opposition to the motion, based on the step proposed in paying for vehicle replacement, while not being the total amount needed, it represented a significant step forward; and if put off longer, it would only put the City and its taxpayers in a worse position for 2011.  Councilmember Roe opined that this would be similar to unsustainable actions taken in past years, bringing the City to the height of the crisis in 2009; and that this internal loan needed to be repaid and taken off the books, allowing that additional funding to improve the City’s overall situation in 2011 for vehicle replacement.

Councilmember Johnson expressed appreciation for Councilmember Pust’s input and suggestions, as well as her rationale; however, he spoke in opposition to the motion, concurring with Councilmember Roe and Mayor Klausing and the need to have relief in 2011 from this $490,000 payment to address other needs.

Roll Call

Ayes: Ihlan and Pust.

Nays: Johnson, Roe; and Klausing.

Motion failed.

Councilmember Pust expressed interest in taxpayers understanding the ramifications of the state decision-making on local government, specifically the need to levy an additional $450,000 against citizens due to state action and in order to bring the City back to where it needed to be.  Councilmember Pust questioned whether it made political and or policy sense for the City Council to levy it back.

Mayor Klausing noted that the problem was due to reductions in property taxes by the state and not funding that money back to local government.  Mayor Klausing noted that the citizens had expressed their appreciation of the current level of service, and appeared to be willing to pay to keep them in place.

Councilmember Pust questioned if the City was faced with reducing services or raising taxes, wouldn’t raising taxes signal the legislature in their next session, when faced with the state budget deficit, to make further reductions to local government.

Councilmember Roe addressed the anticipated 2010 allocations related to Market Value Homestead Credits (MVHC), noting that this appeared to be an annual problem faced by the City; and expressed his frustration with the current situation; however, didn’t see a better or more sustainable solution at this time.

Councilmember Ihlan noted that there had been no policy discussion to-date on whether to levy back this amount; and expressed her inclination to not do so, but to absorb it in budget cuts; opining that it was not fair to allow state government to force regressive property taxes for local governments rather than obtaining funding through income taxes.

Amendment

Ihlan moved, Pust seconded, to reduce the 2010 budget and levy by $450,000. 

Roll Call

Ayes: Ihlan and Pust.

Nays: Johnson; Roe; and Klausing.

Motion failed.

Councilmember Pust addressed vehicle replacement funds and her research of other cities (i.e., Dallas, TX) for replacing squad cars at 100,000 rather than at 75,000 miles; and suggested the City consider this policy.

Mr. Miller noted that the ten-year Capital Investment Plan (CIP) previously provided to the City Council and public, indicated an annual need of $900,000; and even if the budget was reduced by adjusting a different replacement schedule, the CIP still would need to take a major step in subsequent budget cycles, and the $450,000 alone wouldn’t suffice.

Councilmember Pust opined that the City could not continue to increase its levy by 11% annually for the foreseeable future; and if the City Council had other options, she was willing to listen; however, she noted that her job was to make proposals to strike a better balance for people during this economic downturn.

Amendment

Pust moved, Ihlan seconded, reducing the budget amount, with unknown dollar impact, by the amount saved in replacing vehicles at 100,000 miles rather than the current policy for replacement at 75,000 miles.

Councilmember Ihlan spoke in support of the motion, opining that this was a good step in the right direction; but not enough and that a framework needed to be determined on which vehicles to replace with tax money.  Councilmember Ihlan noted that the City Council has never prioritized or ranked the CIP, and needed to do so before further budget decisions were made, and make decisions on which were required for replacement and which could be deferred, or those the fleet could reduce.  Councilmember Ihlan further opined that the City of Roseville was out of step with environmental movements, since it was so focused on vehicle replacements; and should instead look at hybrid vehicles in the fleet.

Councilmember Roe noted that this proposed amendment would reduce the budget and levy by approximately $35,000 based on his calculations; and noted that one squad car was no longer part of the original request, since the position had not been filled.  Councilmember Roe provided a breakdown of the remaining expenditures, including those for the new fire engine; police vehicles; dump truck with plow; sidewalk maintenance equipment; and a park maintenance truck.

City Manager Malinen noted that staff had discussed and considered hybrid vehicles; however, noted that this impacted maintenance and repair service technologies for in-house or contracted out repairs; and suggested that this may have slowed down the City’s implementation of alternative fuel vehicles.  Mr. Malinen noted that, without a more detailed comparison to that of Dallas, TX, it was difficult to determine cost savings since their operations may not be similar to those of Roseville; and suggested further discussion at the City Council level on impacts and costs for maintenance and repairs in the overall consideration.

Councilmember Pust clarified that her purpose in the proposed amendment was not implying that staff was not making responsible decisions.

Councilmember Johnson spoke in opposition to the motion; noting the number of vehicles not funded last year, and only making each succeeding year more difficult.

Roll Call

Ayes: Ihlan and Pust.

Nays: Johnson; Roe; and Klausing.

Motion failed.

In an effort to reduce the proposed tax levy based on the City Council’s obligation to its taxpayers, Councilmember Ihlan recommended a thorough review of the City’s vehicle replacement situation, and suggested deferrals of those vehicles based on prioritizing needs and safety considerations. 

Mayor Klausing questioned whether the City Council was in a position to make competent decisions on which vehicles should be replaced and which should be deferred; opining that the City Council is responsible for making policy decisions, not operational decisions.

Councilmember Johnson concurred.

Councilmember Ihlan reiterated the need to prioritize vehicle replacement.

Amendment

Ihlan moved to defer replacement of vehicles making up the proposed budget amount of $450,000 for 2010, for further consideration in 2011.

Councilmember Pust advised that she needed more information on which vehicles remained safe and which needed immediate replacement.

Mayor Klausing declared the motion failed for lack of a second.

Ihlan moved to direct staff to prioritize among current proposals for vehicle replacement and reduce the proposed budget amount of $450,000 by half (50%).

Councilmember Pust advised that, while sympathetic to the concept, she didn’t have sufficient information to determine which vehicles were safe and which were not; suggesting that this discussion would have been more prudent earlier in the process.

Mayor Klausing declared the motion failed for lack of a second.

Amendment

Ihlan moved, Pust seconded, purchasing any replacement vehicles, up to the $450,000 amount, using General Reserve funds rather than increasing the levy and budget amount accordingly; thereby reducing the budget and levy by $450,000.

Roll Call

Ayes:  Ihlan and Pust.

Nays:  Johnson; Roe; and Klausing.

Motion failed.

Amendment

Roe moved, Pust seconded, to defer purchase to a future year of the $145,000 dump truck with plow for streets (Vehicle #106) and the Park Sidewalk Maintenance Machine (Vehicle #585) for street maintenance for a total savings of $265,000.

Councilmember Pust sought information from staff on ramifications.

Mayor Klausing spoke in opposition to the motion; opining that the City Council should continue to make policy and rely on staff for operational decisions.

Parks and Recreation Director Lonnie Brokke advised that the City had 70 miles of sidewalks to maintain; and that purchase of a replacement machine had already been deferred for several years; and that the current equipment was experiencing a number of breakdowns due to having only two machines to perform this maintenance, and the hard use on those machines.  Mr. Brokke advised that these breakdowns caused delays in pathway plowing; and that repairs were becoming more extensive, with a recent repair costing $2,600.  Mr. Brokke advised that continued deferral would increase maintenance costs and increase down time for repairing the existing machinery.

Public Works Director Duane Schwartz concurred that similar deficiencies would be experienced by deferring replacement of the dump truck; noting that it was experiencing more down time as it aged; and that another piece of equipment (1980 model) had been mothballed for the time being based on extensive repair needs; which was putting newer equipment under additional use and stress to handle the additional workload, and thereby decreasing their life cycle.  Mr. Schwartz advised that this purchase had been deferred three years already.

Mayor Klausing advised that, with this additional information, he felt more comfortable making a decision; however, his decision was the same, but based on this additional information that to keep using vehicles for longer cycles created more cost to taxpayers.

Councilmember Johnson sought further information from Councilmember Roe on his suggested motion rather than leaving vehicle replacement to staff’s discretion.

Councilmember Roe noted that these were the two most expensive items, above and beyond the fire truck; and advised that he could not have made a decision without that additional staff information; and advised that he would not be supporting his own motion.

Roll Call

Ayes: Ihlan

Nays:  Johnson; Roe; Pust; and Klausing

Motion failed.

Public Comment

 P & R Commissioner Ristow

Commissioner Ristow spoke in support of fleet vehicle replacement in a timely manner to avoid further and more costly repairs and maintenance as it deteriorated.

Amendment

Roe moved, Pust seconded, continuing the non-structural temporary budget reductions (from Attachment B identified on RCA Attachment F and dated 12/21/09) from 2009 to 2010 with the exception of the following:

Legal:  $5,675

Finance/Accounting (reduced reception desk duties):  $16,260

Street Maintenance (6 month staff position):  $31,148

Park & Recreation Program and service level cuts:  $36,000

Reduced PIP for Parks and Recreation: $6,000

for a total reduction in the proposed 2010 budget and levy of:  $57,596.

Discussion included the actual reduction to households per month amounting to a few cents; clarification of the motion as NOT continuing  the 2009 cuts that were described in the motion, but rather continuing the rest of the cuts on the list; 2009 cuts not restored for 2010; and those items not sustainable.

          City Manager Malinen noted that the two Public Works cuts, Building Maintenance –    Prof Services: $20,000 and Engineering ROW, Erosion Control Mgmt: $20,000, have          already been continued into the 2010 budget, so those cuts should not in fact be included    in the proposed motion. 

Councilmember Roe corrected his amendment for a total reduction of $17, 596, rather than the original reduction of $57,596. 

Roll Call

Ayes: Roe; Pust; and Ihlan

Nays:  Johnson; and Klausing

Motion carried.

Amendment

Ihlan moved to reduce the overall budget by 2%, with staff directed to make allocations as equally as possible across departments. 

Mayor Klausing clarified if the motion was for the budget or levy; and declared the motion out of order as it proposed to reduce the budget, action not currently before the body.

Ihlan moved to reduce the overall levy made possible by the 2% across the board cut to the City’s overall budget.

Mayor Klausing noted that not all departments were subject to the General Fund levy, and direction to staff would not be applicable.

Councilmember Pust, while not supportive of the proposed motion, and therefore not seconding it, opined that it was the City Council’s job to provide direction to staff on line items, particularly after having reviewed and ranked each line item.

Mayor Klausing declared the motion failed for lack of a second.

Amendment

Ihlan moved, Pust seconded, declaring that City employee wages be frozen for the 2010 budget; not just COLA but step increases as well, across all departments, with that action to be revisited in 2011.

Discussion included the City Manager’s proposed zero percent COLA for 2010; rationale for keeping the step program in place based on peer community compensation plans and existing union contracts to retain skilled employees and reduce turnover; continuing union negotiations; union versus non-union compensation; $25,000 estimated impact to the General Fund levy and budget for 2010 for step increases impacting 88 of 174 employees; and City Council versus City Manager employee management.

Roll Call

Ayes: Roe and Ihlan.

Nays: Johnson; Pust; and Klausing.

Motion failed.

Amendment

Ihlan moved, Pust seconded, to eliminate non-mandatory funding for training in 2010 across departments, to only fund mandatory training, with an aim toward reducing the training by half its current levels.

Discussion included training to retain or obtain licenses; those mandatory; and those discretionary, with no numbers available at this time to indicate the amount of reduction this would provide; previous actions to reduce training expenses; and information provided by the Police Department on mandatory and optional training.

Public Comment

Gary Grefenberg, Mid Oaks Lane

Mr. Grefenberg provided training cost calculations to Councilmember Ihlan at the bench. 

Councilmember Roe spoke in support of the concept, but not without a final number.

Councilmember Ihlan noted her frustration in not receiving sufficient information from staff prior to packet delivery.

Roll Call

Ayes: Klausing; Pust; and Ihlan.

Nays: Johnson and. Roe;

Motion carried.

Amendment

Ihlan moved, Pust seconded, freezing City payment for travel, lodging and/or meal expenses for out-of-town conferences for a one-year suspension of those expenses unless approved by the City Council; and/or if other options for mandatory conferences are not available locally.

Roll Call

Ayes: Johnson; Pust; and Ihlan.

Nays: Roe and Klausing

Motion carried.

Amendment

Ihlan moved that Police Department overtime, other than for police emergencies and/or major investigations, be reduced by half ($45,000) in overtime paid for training or non-necessary functions.

Councilmember Pust opined that if staff worked overtime, the City was required by law to pay them based on fair labor standards; and noted that all departments were aware of their staffing needs and budgets and could use their discretion.

Mayor Klausing declared the motion failed due to lack of a second.

Mayor Klausing called the original motion, as amended, with the proposed levy reduced by $17,596 for a new total of $14,282,404.

Roll Call (Original motion) as amended

Ayes: Johnson; Roe; and Klausing.

Nays: Ihlan and Pust.

Motion carried.

Councilmember Ihlan spoke in opposition to the original motion, based on citizens facing unemployment or stagnant or falling wages.

Public Comment

Gary Grefenberg

Mr. Grefenberg noted that there remained 4-5 national conferences for the City Manager; and opined that he didn’t see any sacrifices being made by public employees for the benefit of City taxpayers.  Mr. Grefenberg further requested an opportunity for public discussion and ranking for the ten-year CIP, opining that a proposed 7% annual increase was not sustainable to taxpayers.  Mr. Grefenberg begged that the budget process for 2011 be a totally transparent one; with detail line items provided much earlier in the process. 

Councilmember Pust thanked Department Heads for their patience throughout the process; for being present to listen to City Council discussions; and expressed her appreciation for their work and availability to continually answer questions.  Councilmember Pust thanked Councilmembers for having honest discussions from differing viewpoints, allowing the public to hear their options and those differing views.

Klausing moved, Roe seconded, adoption of Resolution No. 10773 entitled, “Resolution Adopting the Final 2010 Annual Budget for the City of Roseville;” in the amount of $37,703,959.

Councilmember Roe thanked Councilmember Pust for her comments; and concurred that each individual Councilmember was trying to do their best for the citizens.  Councilmember Roe understood the passion of people saying that taxpayers were not experiencing wage increases in this business climate; taxpayer ability to pay and the numerous issues to consider.  After all considerations, Councilmember Roe personally opined that this was a responsible budget and an appropriate levy for the average taxpayer, with the City’s shrinking tax base; for the City to achieve financial sustainability and loss of other funding sources; as well as declining home values.  Councilmember Roe recognized that some taxpayers would pay more and some less based on their market values; and while preferring no increase, opined that it would irresponsible of him to adhere to such a policy.  Councilmember Roe noted that the decisions were difficult; however, the proposed budget reflected some of the realities facing the taxpayer and the City.

Councilmember Ihlan spoke in opposition to the budget for the reasons previously addressed for the levy; noting her preference to draw on reserve funds during difficult financial times.

Councilmember Johnson thanked fellow Councilmembers for their comments; and echoed those to staff in their work with Councilmembers throughout the process.  Councilmember Johnson opined that it had been a great learning experience for him; and like any great body, in retrospect, they could make improvements in the process in future years.  Councilmember Johnson advised that, while supporting some of the previously-proposed amendments, he supported them in principle, but could not attribute a definite number to them to allow him to offer his support at this time.  Councilmember Johnson noted that, while all Councilmembers may not be in agreement with him, he was using his best judgment on what was in the best interests of long-term Roseville; and represented his heartfelt passion for this City; but appreciated and honored everyone’s viewpoints as well.

Roll Call

Ayes: Johnson; Roe; and Klausing.

Nays: Pust and Ihlan.

Motion carried.

Klausing moved, Johnson seconded, adoption of Resolution No. 10774 entitled, “Resolution Directing the County Auditor to Adjust the Approved Tax Levy for 2010 Bonded Debt;” in the amount of $84,533.56.

Roll Call

Ayes: Johnson; Roe; Pust; and Klausing.

Nays: Ihlan.

Motion carried.

10.      b.         Twin Lakes Redevelopment Project Update

                      Due to time constraints, this item was deferred to a future agenda.

13.             Public Hearings

14.             Business Items (Action Items)

a.                 Adopt a Resolution Approving the 2010 HRA Tax Levy

A worksheet representing the 2010 proposed HRA Budget was provided as a bench handout. 

Mr. Miller advised that the HRA was affirming their preliminary request presented on September 14, 2009; with their recommendations remaining the same.

Pust moved, Roe seconded, adoption of Resolution No. 10775 entitled, “A Resolution Submitting the Housing and Redevelopment Authority, in and for the  City of Roseville, Special Property Tax Levy on Real Estate to the Ramsey County Auditor for the Fiscal Year of 2010;” in the amount of $353,500.

Councilmember Ihlan spoke in opposition to the motion; opining that this represents a 32% increase from 2009 for the HRA, and without the 5% property value reduction was closer to 38%.  Councilmember Ihlan opined that the HRA continued to grow annually by double-digit increases; and for the same reasons it was wrong to increase the General Fund tax levy, the same rationale applied in greater force to the HRA, with programs that could be maintained without any levy increase at all.

Mayor Klausing, specific to the HRA and the burden on taxpayers, noted that he had heard several times this evening the notion of burdening taxpayers; and opined that all taxes are burdens; but if the City was to think long-term, that burden should be shouldered fairly and the City Council and taxpayers should take their responsibilities to not unfairly shift those burdens to future taxpayers by allowing significant deficits and allow the City to take care of its housing stock.  Mayor Klausing recognized the significant work done by the HRA in code enforcement and housing program assistance; and their current review of rental housing, to help the community in the long-run to retain its housing stock and with increased property values and decreased maintenance costs.  Mayor Klausing noted that, while talking about percentages to justify rationale, the proposed increase to the average home in Roseville for the HRA Levy is $4 annually.

Councilmember Pust concurred with Mayor Klausing; however, noted that she was very conscious of the burden on taxpayers, and while taking her job seriously to minimize that burden to the extent possible, opined that this minimal increase is worth every penny to taxpayers given the work done by the HRA in neighborhoods, the Living Smarter Fair, investing in affordable housing, and survey of multi-family housing for future policy decisions of the City Council.

Councilmember Roe spoke in support of the motion; opining that maintaining interest in Roseville’s housing stock was important and money well-spent and that the multi-family housing issue may be larger than anticipated.  Councilmember Roe noted that the HRA budget had actually been reduced by 38% from 2009.

Roll Call

Ayes: Johnson; Roe; Pust; and Klausing.

Nays: Ihlan.

Motion carried.

b.                 Adopt a Resolution for Final Consideration on Certifying Unpaid utility and Other Charges to the Property Tax Rolls

City Attorney Scott Anderson reviewed his firms’ December 9, 2009 legal opinion on the Assessment Waiver question specific to those two residents appealing certification of unpaid utility bills that had been incurred by previous owners.

Discussion included argument of property owners in the delay in receiving notice; what efforts the City could take to avoid similar situations in the future while considering due notice to previous property owners;  disclosure of property owners during closing and claims against other property owners; language of the City’s current ordinance clearly defining action in these types of situations; and whether language should be revised in accordance with state law to allow the City discretion under certain circumstances.

Further discussion included ramifications to other previously-certified billings; staff interpretation of the ordinance accurately; timing issues in notifying the new property owners; recent language revisions to the ordinance to allow staff to certify unpaid bills at any time during the year, rather than limiting it to once a year; equity fairness considerations; billing cycles versus certification cycles; and other complexities of the issue.

Klausing moved, Pust seconded, adoption of Resolution No. 10776 entitled, “Resolution Directing the County Auditor to Levy Unpaid Water, Sewer and Other City Charges for Payable 2010 or Beyond; as detailed in Attachment A of the Request for Council Action dated December 21, 2009.

Roll Call

Ayes: Johnson; Roe; Pust; and Klausing.

Nays: Ihlan.

Motion carried.

c.                  Receive 2009 Legal Services RFP Summary report and Approve Contracts for Civil and Prosecuting Legal Services

City Manager Malinen provided a bench handout, with several minor changes to the negotiated standard agreements included in the RCA dated December 21, 2009.

Discussion included differences in the prosecutorial and civil agreements based on retainers and hourly rates.

Caroline Bell Beckman, representing Jensen, Bell, Converse & Erickson, P A

Ms. Bell Beckman provided clarification of the Prosecuting Contract related to forfeiture work, with City staff now handling the majority of this work, rather than legal counsel, providing substantial cost-savings to the City; and making it more economical to have the contract apply on an hourly basis.

Related to process, Councilmember Ihlan requested that the actual proposals or at least a list of the bidders be provided to the public.

City Manager Malinen advised that, at the end of the process, the information would become public.

Further discussion included amount of retainers; additional legal fees anticipated in the 2010 budget; and built-in 3% increases to be reviewed annually.

Ms. Bell Beckman advised that the RFP called for those inflationary increases; however, she noted that their current retainer amount for prosecution was the same as 2009; and they were proposing freezing it in 2010, similar to their practice for their other municipal clients during these difficult economic times.

Johnson moved, Pust seconded, approval of the City Manager appointment of, and authorize the City Manager to execute a contract for Civil legal services with the law firm of Jensen, Bell, Converse & Erickson, P. A.; as detailed in the “Standard Agreement for Professional Services” (Attachment A) to the Request for Council Action dated December 21, 2009.

Councilmember Ihlan requested that the firm be flexible in considering future inflationary increases.

Ms. Bell Beckman advised that this was understood; as well as their potential name change once they had completed their firm’s move to Roseville from downtown St. Paul.

Roll Call

Ayes: Johnson; Roe; Ihlan; Pust; and Klausing.

Nays: None.

Pust moved, Roe seconded, approval of the City Manager appointment of, and authorize the City Manager to execute a contract for Prosecution Legal services with the law firm of Jensen, Bell, Converse & Erickson, P. A.; as detailed in the “Standard Agreement for Professional Services” (Attachment B) to the Request for Council Action dated December 21, 2009.

Roll Call

Ayes: Johnson; Roe; Ihlan; Pust; and Klausing.

Nays: None.

Councilmember Johnson expressed his curiosity in how Ms. Bell Beckman found the Best Value process.

Ms. Bell Beckman advised that, while not familiar with the process prior to this, she thought it went well; found it interesting; and appreciated the evaluation of their municipal clients, including Roseville during the process. 

Councilmember Johnson thanked staff for their incredible efforts during the process; and welcomed the firm on board.

d.                 Approve Standard Professional Agreement

Councilmember Pust had several questions on the draft Standard Professional Agreement; and suggested that further discussion be held at a future meeting to make it consistent with the previous action, (i.e. page 3, paragraph 7 related to attorney contracts) and annual evaluations; insurance provisions;  and mandatory mediation (i.e., page 7, paragraph 22) particularly since alternative dispute resolution is mandatory in MN; and other areas where standard language templates needed to be optional.

15.             Business Items – Presentations/Discussions

1. Discuss City Manager Evaluation

Mayor Klausing, with Councilmember consensus, volunteered to serve as a member of the subcommittee to initiate City Manager Malinen’s annual review; along with Councilmember Johnson.

16.             City Manager Future Agenda Review

City Manager Malinen reviewed upcoming agenda items.

17.             Councilmember-Initiated Items for Future Meetings

Mayor Klausing thanked City Attorney Scott Anderson and firm for their service to the City of Roseville.

Mr. Anderson thanked the City of Roseville for allowing his firm to serve the City for the last seven years.

Mayor Klausing wished all a Happy Holiday.

18.             Adjourn

The meeting was adjourned at approximately 10:03 pm.