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07-13-10 CM Minutes Council/Manager Meeting Minutes July 13, 2010 Present: Mayor Loomis and Council Members Freiberg, Pentel, Scanlon and Shaffer, City Manager Tom Burt, Public Works Director Jeannine Clancy, Finance Director Sue Virnig, City Engineer Jeff Oliver, Environmental Coordinator AI Lundstrom, Park and Recreation Director Rick Jacobson and Assistant City Manager Jeanne Andre. The meeting began at 7:10 pm in the Council Conference Room. 2009 Comprehensive Annual Financial Report Sue Virnig introduced MMKR Auditor Bill Lauer. He provided an overview of the components of the audit, including internal controls, compliance, Minnesota laws compliance and special purpose reports. He noted that the Report provides an unqualified opinion. The only citation is due to the small size of the staff, segregation of duties is not as extensive as recommended. He reviewed the Management Report with the Council and took questions. Honeywell Little League Expansion The Council received an update from staff on the status of the project and discussed fund raising with Little League officers. The City has received the Hennepin County contract, which requires that the City front the funds for the ballfields, with the County to reimburse up to $400,000. The City Attorney has determined that the purchase agreement for the property requires that Honeywell pay for necessary environmental remediation. Staff is working on a contract for design services, and is revising it to include all of the required services, including soil borings, survey work and construction observation. The goal is to have this contract equal the proposed Little League contribution of $67,500. The City has negotiated with Hennepin County to extend the construction deadline from April of 2011 to the fall of 2011. Little League officers noted that they started fundraising six weeks ago and have collected $5000 to date. They requested the City to front the design costs, with Little League to collect its full contribution within a year. They asked if the Council would consider any changes to the sign ordinance to allow them to have permanent signs and/or scoreboard signage with advertisements. The Council determined that the contracts with Hennepin County and the design consultant could go on the next Council agenda. 2011-12 Pavement Management Program Jeannine Clancy and Jeff Oliver presented preliminary design issues that have been identified for the 2011-12 pavement management area that the Council may need to address as the project moves forward. These include: . The City needs to purchase an easement for the placement of a reconstructed storm sewer between Circle Down and Radisson Road. There is no easement for the existing storm sewer in this location, which is in very poor condition. Council/Manager Meeting Minutes July 13, 2010 - page 2 . A resident has expressed opposition to the proposed intersection design for Turnpike and Lawn Terrace. The staff supports changing the intersection geometrics to make it safer. . A petition has been circulated opposing concrete curb and gutter and sidewalk for a portion of the project. The Council asked that the current policy related to concrete curb and gutter be provided to the residents. . A mill and overlay of some of the MnDOT-constructed cui de sacs (Circle Down and Colonial Drive) is proposed as part of this project, as well as Welcome Circle, which was previously reconstructed. . Turners Crossroad may be removed from the project if construction in this area conflicts with the Metropolitan Council Environmental Services sanitary sewer interceptor project. Douglas Drive Financing and Proposed Xcel Franchise Fee Ordinance Jeannine Clancy noted that the Council has previously discussed implementing an electrical franchise fee to fund the City portion of the reconstruction of Douglas Drive from Highway 55 to Medicine Lake Road, which Hennepin County plans to put it its 2016 Capital Improvement Program. Working with Xcel and the attorney for the Suburban Rate Authority, staff has revised the rate structure previously discussed with the Council, providing for flat fee user rates of $2 per month for residential customers and small commercial/industrial customers with larger flat fees for large and demand commercial/industrial customers. The fees as recommended would generate approximately $630,000 per year. Staff suggested a schedule with first consideration of the ordinance in August if the Council decides to proceed. Public hearings would be required, and staff also recommended that a background article be included in the next CityNews to explain the proposed fee to the public. If the City adopts the ordinance, Xcel is provided 60 days to implement the fees. The Council concurred with setting the initial public hearing on August 17. Emerald Ash Borer Management Plan AI Lundstrom reported that an inventory of trees on public property has been undertaken to better understand the possible impact of the emerald ash borer on City trees. Based on experience in Michigan, after an initial infestation is discovered, there is usually only a three to five year period before the infestation becomes widespread. Staff has developed a Management Plan based on a partial inventory of publically owned trees, and plans to finish the inventory in the winter. The staff has interpolated that there are 3000 public ash trees and developed the Management Plan to provide for the orderly removal of all ash trees on public property. Significant discussion occurred on the City's current management of boulevard trees. Since the City has never had a boulevard tree planting program, most boulevard trees in Golden Valley have been planted by the property owners. However for public safety and tree health reasons, City crews have trimmed up the lower branches of the trees to Council/Manager Meeting Minutes July 13, 2010 - page 3 clear the understory on a 15-year cycle. It also has a contract for removal of deadwood on boulevard trees, so that trees and limbs are less likely to go down in a storm and create a hazard. Since the City did not originally plant the boulevard trees, staff does not propose to replace them, although the City would remove boulevard trees under the proposed plan. A current program with the City of Plymouth allows Golden Valley residents to purchase trees at a reduced rate. The proposed plan calls for the removal of all public Ash trees over a 15 year period. Depending on the degree of infestation, the plan may need to be modified over time. Staff has proposed the 15-year schedule to spread the budgetary cost while still aggressively removing vulnerable trees. The Plan currently budgets for replacement of trees in parks and at the golf course, with the Brookview Golf budget covering the latter. It is estimated that 50 of every 200 Ash trees removed from public property will be replaced in this way. The Council directed staff to bring the Emerald Ash Borer Management Plan forward for formal Council consideration. However the Council would like to get legal opinions on responsibilities for boulevard trees to determine if the City should continue maintenance of boulevard trees and not replace privately planted trees. Based on this further discussion they would like to educate the public on the policies adopted and the rationale behind those policies. Biennial 2011-12 Proposed General Fund Budget Tom Burt provided an overview of the budget, which provides for a .34% increase in 2011. The budget includes an allowance for salary increases, but he is unable to recommend an amount until there are settlements in other cities and further negotiations with the unions. Staff is reduced the equivalent of 2 FTE, some by attrition. He is also recommending dropping the most expensive health option. The Council discussed benefits and negative impacts of pay increases or no pay increases and layoffs or no layoffs, as well as levying for lost state aid. The proposed budget levies to the maximum of the anticipated levy limit, but does not include any specially allowed levies. The meeting adjourned at 9:45 pm. Jeanne Andre Assistant City Manager