HomeMy WebLinkAbout05-02-2016 Council Work Session MinutesCITY COUNCIL WORK SESSION
APPROVED
May 29 2016
1 CITY OF LINO LAKES
2 MINUTES
3
4 DATE May 2, 2016
5 TIME STARTED 6900 p.m.
6 TIME ENDED 9:35 p.m.
7 MEMBERS PRESENT Councilmember Rafferty, Kusterman,
8 Maher, Manthey and Mayor Reinert
9 MEMBERS ABSENT None,
10
11
12 Staff members present: City Administrator Jeff Karlson; Finance Director Sarah Cotton;
13 Community Development Director Michael Grochala; Public Safety Director John
14 Swenson; City Planner Katie Larsen; City Clerk Julie Bartell
16 1. Board of Appeal —Alex Guttenberg, Anoka County Assessor's Office, reviewed
17 the Board of Appeal written report and explained the board meeting process. He pointed
18 out that the role of Anoka County is to assist the city in running the meeting. Based on
19 the number of calls they have received, they are not expecting a large turnout.
20
21 Mayor Reinert reviewed his experience; the process allows the council to consider special
22 situations or issues that may not be clear in the mass assessment process used by the
23 county.
24
25 Mr. Guttenberg explained changes in the timing of the assessment process to provide
26 more accurate valuations. He reviewed parcel count data, how property review is handled
27 and adjustments planned in the industrial/commercial assessment process. He reviewed
28 sales data from the last period and how that is considered in the valuation process. He
29 explained valuation increases by type of property.
30
31 Mayor Reinert explained that the council has authority over valuation of properties in the
32 city and while that authorize is not to be abused, there are some situations when it is
33 appropriate to use that power to make corrections.
34
35 The council requested that they receive the taxable market value report that was created
36 by the County.
37
38 2. Apollo (109in)/Sunset Improvement Update —City Engineer Hankee reviewed
39 the written report outlining plans by Anoka County to improve the intersection of County
40 Highways 12 and 53 (the intersection of 109t' Avenue NE/Apollo Drive and Sunset
41 Avenue). Improvements include construction of a roundabout. She explained the three
42 actions that the council will be asked to consider next Monday: prohibit parking on
43 Highway 12 County Road 53, authorize the City Engineer to sign the project construction
44 plans, and convey permanent easement for drainage purposes. She noted that Anoka
45 County staff is in discussion with impacted property owners, some in Lino Lakes and
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May 292016
46 some the city of Blaine, and that they were notified that the council would be discussing
47 the matter this evening. She introduced Anoka County Engineer Doug Fisher.
48
49 Mr. Fisher told the council that the intersection has been problematic and the county has
50 been seeking improvements for some time and is committed to moving ahead with a
51 project now. They have looked at different options, sought funding from other levels, and
52 worked out joint powers agreements with the impacted cities. Through engineering
53 analysis they have come forward with the proposed project. Major considerations
54 through the process of planning this project have been to improve safety, improve
55 capacity and present a good design (roundabouts are quite new to the county). Like all
56 projects, they've had to balance impact on property and environment as well. He
57 reviewed the location of the project noting movement of the intersection to the south and
58 west. They have heard from people of the need to improve Sunset Road (to North Road)
59 as well and so they've added a mill and overlay county funded project to this scope. He
60 explained where turn lanes will be added. When both cities (Lino Lakes and Blaine)
61 approve the joint powers agreement, they will go out for bid. An aggressive schedule is
62 planned because they want no closures during the school year to avoid disruption of
63 school bus routes.
64
65 Mayor Reinert remarked that the intersection obviously needs improvement because of
66 safety concerns. He's been hearing from neighbors about the size of the roadway and
67 noise concerns. He understands that the design may actually reduce some truck noise
68 since a roundabout will allow trucks to proceed without air braking.
M
7o Council Member Kusterman asked about the status of land acquisition. Mr. Fisher
71 explained that acquisition of easement is required from four properties (maps were
72 shown). The council reviewed the project plan from an overhead view. Ultimately when
73 Sunset is reconstructed, there will be some additional changes. Regarding those
74 properties, a resolution has been reached with one of the four.
75
76 Council Member Rafferty asked about a substantial completion date and the project
77 engineer responded that the date they are using is August 28, based on a May 13 bid
78 opening; it is an aggressive schedule. Mr. Fisher added that the aggressive schedule
79 generally means that there could be a longer closure to allow more work hours. Council
80 Member Rafferty asked about the bid process and how quality will be considered. Mr.
81 Fisher replied that the work will be done under contract and failure to perform as required
82 has consequences; inspections will occur and a high standard is called for.
83
84 Council Member Maher asked if the properly where the driveway is relocated will receive
85 that work paid through the project and Mr. Fisher said that is the plan and the county will
86 offer the work done or pay for the property owner's choice of work.
87
88 Comments were offered by impacted residents and county staff responded:
89
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90 - Road closures — engineer will make sure there is access to all properties at all
91 times; they will work with special events or special access needs also.
92 - Start date — engineer stated June 6 is the county's plan, based on the final day of
93 school and the plan to not disrupt school transportation;
94 - Communication to residents — folder of information planned for residents;
95 - After construction issues —county engineer said they hold a retainage from the
96 contractor to deal with issues that arise;
97 - Property owner at 7262 Sunset Av expressed concern about the easement that
98 would cut his property in half and his concern that it isn't clearly needed; Mr. Fisher said
99 the county is willing to not ask for that easement.
100
101 Mayor Reinert expressed concern about a fair process for property acquisition and Mr.
102 Fisher said they are always committed to negotiating a fair deal and avoiding a long
103 drawn out process; they respect the rights of the property owner but must as well
104 recognize they are using taxpayer funds. Mr. Fisher added that impact on just four
105 properties is low.
106
107 Mr. Fisher and the engineer noted the size of the proposed roundabout — it has been well
108 planned and will be large enough to accommodate needs.
109
110 Mayor Reinert remarked that if people have concerns or questions, the council's heard
111 that the county is ready and able to communicate.
112
113 3. 550 Lilac Street SAC Assessment — Community Development Director
114 Grochala noted that the owner of this business center property appeared before the
115 council at their last meeting to discuss an assessment against his property. Mr. Grochala
116 reviewed the history of the situation:
117 - The business center was built in 2003 and was charged SAC charges from the Met
118 Council for facilities in place at that time;
119 - In 2010 a building permit was issued for a retrofit to allow for Anytime Fitness. It
120 included the addition of showers and that triggered a SAC addition of three credits;
121 $6,300 came due;
122 - In 2010 the city approached the property owner and a study of SAC charges was
123 requested and prepared by engineering staff; the additional assessment wasn't picked up
124 (the city charges were there but the SAC wasn't picked up);
125 - The building was purchased by Mr. Moriteza in 2010;
126 - In 2012 the Met Council did their normal audit process (the city is responsible for
127 collecting their SAC charges) and found that charges were outstanding;
128 - A notice was given to Mr. Moriteza; he did not pay and indicated he felt the previous
129 owner should pay;
130 - Because the assessment wasn't paid, it was certified against the property, payable 2014;
131 - What was ultimately sent to Anoka County for certification included an incorrect PIN
132 number; when that was determined, the charges were abated and reassessed to Mr.
133 Moriteza's property;
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134 - Mr. Moriteza then filed an appeal to the Anoka County district court asking for relief on
135 the matter;
136 - The assessment issue arose again when a restaurant requested a liquor license and back
137 taxes were identified;
138 - A court hearing is now scheduled for next week on the matter.
139
140 Mayor Reinert asked about the court process and heard that the city is likely to be allowed
141 to have the assessment stand; of course both sides would incur court costs. He thinks the
142 path coming here today is ridiculous and, being pragmatic, he'd suggest splitting the
143 difference and avoiding the court costs.
144
145 Council Member Kusterman asked Mr. Moriteza about the status of Anytime Fitness, and
146 heard it is still operating with the showers in question.
147
148 Mr. Moriteza argued that he already paid for the properly and doesn't feel he owes
149 additionally for that purchase. He purchased the building six months after the charges
150 came up so they are owed by the previous owner. He has paid the taxes and due to lack
151 of tenants at one point he almost lost the property.
152
153 Council Member Kusterman argued that the city didn't benefit from the improvements as
154 far as he can see.
155
156 Council Member Manthey noted that it seems that Mr. Moriteza has done his due
157 diligence with the property and tried to work it out.
158
159 The council asked about the possibility of seeking payment from the previous owner; Mr.
16o Grochala explained that he can't respond on the legal possibility. What the city could
161 possibly do is look at the SAC amount determination and, since the Met Council's
162 parameters have changed, there could be a lesser amount of SAC owed to the city in the
163 form of credit and he could check on that possibility by the court hearing next Tuesday.
164 The mayor suggested that the council look at two solutions — one being taking a lesser
165 amount into consideration and one that doesn't.
GO
167 The council discussed the involvement of title insurance and Mr. Moriteza explained that
168 despite the fact that he purchased title insurance, the company providing it will not take
169 responsibility since it involves a government mistake.
170
171 Council Member Maher explained that she sees government mistakes leading to this issue
172 and it appears that Mr. Moriteza wasn't able to know about the charges. She is leaning
173 toward abating the charges. If the city must hold someone responsible, there should be a
174 course to follow the trail to the person who really should be paying.
175
176 The council will have additional opportunity to discuss this prior to the court date. Mr.
177 Grochala suggested delaying the hearing so that attorney preparation doesn't cause
178 additional costs to be incurred while more study occurs.
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179
180 4. Watermark Development Update — City Planner Larsen updated the council on
181 the Watermark Project. A public hearing was held at the Planning and Zoning Board and
182 three comments were received (none from Lino Lakes' residents). The comments heard
183 were about drainage, traffic, signals, buffers or noise walls. The Planning and Zoning
184 Board discussed the lack of commercial development that was planned and one member
185 still has concerns with the development being called mixed use under those terms. There
186 were some minor changes proposed to the development based on P&Z discussion on
187 traffic and those changes will be brought back to them. The design standards are still
188 under review for the townhomes (they are mostly hammered out for the single family
189 element).
190
191 Council Member Maher asked about the small parcel in the southwest corner of the map
192 that isn't included. Ms. Larsen said the property owners apparently are not interested in
193 selling that land.
194
195 Mayor Reinert noted that this would be the largest development in the history of the city
196 so it is a big consideration. He also noted that if this development wasn't master
197 planned, it would be split into many individual projects each looking for different things
198 and probably higher density and different standards and quality. As a whole he feels this
199 development looks good in its fit within the city. This being right against 35E and to get
zoo good quality in that location, he sees as a win for the city. The gross and actual density
201 was noted and is fairly low.
202
203 Council Member Manthey noted that the project also ties into the city's future plans in the
204 area of drainage and improvements that are much needed.
205
206 Council Member Rafferty asked if this will be reviewed by the Public Safety Department
207 and Ms. Larsen said they've been involved in the design review process from the
208 beginning.
209
210 The mayor asked about remaining issues and Ms. Larsen noted design standards which
211 will be a topic at the next Planning and Zoning Board meeting. Other than that, minor
212 things like storm main location and impact on property lines, a trail connection and minor
213 tweaks in the plat. The mayor asked about park dedication budget and Ms. Larsen said
214 that isn't finally determined as yet but she explained the areas that will be credited to the
215 developer within the development (trails, private park land, etc). Mayor Reinert noted
216 that he really likes the front end build out of the park and those inclusions for residents to
217 use right away but he does understand that will have an impact on the park dedication
218 fees.
219
220 Mayor Reinert discussed a communication plan, including proactively working with the
221 newspaper to get information out about the development so that people can bring forward
222 their questions.
223
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224 5. North Oaks Company PUD Concept Plan — Planner Larsen reviewed the
225 proposed development on a map. A concept plan has been reviewed by the Planning &
226 Zoning Board and they've returned with some modifications. It involves 29 single
227 family homes, 30 units of one4evel twin homes.
228
229 Gary Eagles, Vice President of Development of North Oaks Company, reviewed the
230 history of the company (they've done most of the development in the city of North Oaks).
231 The core tenant would be Presbyterian Homes.
232
233 Council Member Manthey asked about phasing and a development representative
234 indicated planned phases on a map.
235
236 The price range would be basically $500,000 and up and the project would be started as
237 soon as possible. There may be some highway issues to resolve.
238
239 Council Member Rafferty asked about water connection and Mr. Eagles explained that a
240 connection was included when the Rapp Farms development was done and is now
241 available to connect to this project.
242
243 Mayor Reinert indicated that this is a very preliminary review seeking the council's taste
244 for the project. He sees it as a positive project. He prefers the lower density and also
245 feels there is a market for the properties proposed.
246
247 Council Member Manthey said he likes the lower density next to the wetlands as it
248 decreases pressure on those resources.
249
250 There was discussion about the lack of commercial included in the plans. Ms. Larsen
251 explained that three members of the P&Z Board did express concerns with that missing
252 element (mixed use is called for in the location). She explained that the designation of
253 mixed use can be either/or. Also the market study that drives the designation should be
254 reviewed if, in fact, the market doesn't exist.
255
256 Council Member Rafferty noted the knowledge and experience of the developer and how
257 it speaks to the quality of the development.
258
259 Planner Larsen explained that staff is seeking just a preliminary concept review. Mayor
260 Reinert suggested that staff keep the discussion going on a commercial element and
261 continue to keep the council updated every few months.
262
263 6. Best Value Procurement — WSB & Associates representative Brian Bourassa
264 addressed the council. He noted that the council requested more information on a best
265 value contracting scenario. He distributed information provided by the League of
266 Minnesota Cities on the concept. It represents something of a new option that allows for
267 the establishment of performance criteria. It can be part of a bidding process or allowed
268 as an option. Because this is somewhat of a new process, there are statutory limits to the
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269 number of times it can be uses yearly. He explained that he has been trained in this
270 process but it hasn't been as widely used as anticipated. It's been most popular with
271 school projects but is also used by the City of Roseville. He provided a sample bid
272 evaluation form and bid report that was done using this process. When asked why the
273 city wouldn't want to do it, Mr. Bourassa said it could result in a more expensive project.
274 Where it's being used, it is seen as valuable.
275
276 Mr. Grochala suggested that it would add more complexity to the bid process and
277 therefore could add cost since it requires more from the contractors. Mayor Reinert said
278 he likes the idea that it would be optional. Council Member Kusterman suggested this
279 would be good for the projects where the city doesn't have confidence or enough
280 information without it. Mayor Reinert said it raises the bar. Mr. Grochala suggested that
281 the city could tend to use this on a more complicated project and he doesn't necessarily
282 see that the project with problems would have been one of those. Mr. Bourassa suggested
283 that criteria could be tied to areas that need the most attention in the city's estimation.
284
285 Mayor Reinert suggested that it's always good to have options and he thinks this is a good
286 tool to have available. Mr. Bourassa explained that the concept could be implemented
287 when the city sees a project that calls for it; they can do research with contractors in the
288 meantime to see how they react to the concept.
289
290 7. 2017 Budget Priorities — Mayor Reinert noted the two new council members and
291 their introduction to the city's budget process. He reviewed some city budget history —
292 last year there was no valuation increase and in years previous there were some drops in
293 valuation. All that resulted in trimming the budget. He'd like to have a goal of lowering
294 the levy percentage this year. He reviewed some of the 2016 budget, including use of
295 fund reserve, closed bond funds and debt service. He noted that there are two years left
296 on debt service for the city hall complex and that was a consideration in the two year plan
297 on paying for the fire service. Looking ahead to this year, the startup costs should
298 disappear but there will be debt service on the fire station. He thinks there will be some
299 influx to the closed bond fund from the city hall debt service also. Looking at the 2017
300 budget, the council may be looking at a possible gap but he sees positives. He discussed
301 capital equipment costs and the need to have a balanced approach; he'd like a discussion
302 about an appropriate annual contribution for fire equipment. He feels the city is in good
303 shape and there is possibility of a reduction in the levy. He noted that he sees the Public
304 Services budget bouncing up and he'd like to have that discussion as well as keeping an
305 eye on the public works facility and how that will be maintained and if there should be a
306 plan for replacement in the future.
307
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308 The mayor suggested a couple of budget sessions — one with council only (Administrator
309 Karlson and Ms. Cotton providing some education on the budget process and status) and
310 then one with staff. The council concurred to have the first session on the third Monday
311 of this month. Council Members asked for a tour of public works facilities.
312
313 8. Council Update on Boards and Commissions —
314 Council Member Manthey — Charter Commission discussed legal services for their ward
315 amendment work; the group has decided to not use the League of Minnesota Cities and
316 brought in another attorney who advised them to not argue the opinion of the city's
317 attorney.
318
319 Director Swenson — Joint Law Enforcement Council — how to pay for the replacement of
320 equipment will be discussed at July meeting — budget implications most likely.
321
322 Council Member Maher — North Metro Telecommunications Committee - met on the
323 Century Link agreement but she missed the meeting.
324
325 Council Member Rafferty — Vadnais Lake Watershed District — concern that the state may
326 approve some augmentation to White Bear Lake. Recent audit of their books may
327 indicate issues with underfunding of PERA — more information to come.
328
329 9. Monthly Progress Report - Administrator Karlson reviewed the written report.
330 Several of the items had already been reviewed.
331
332 Mayor Reinert asked for an update on the American Legion parking lot situation. A
333 memorandum was distributed from Springsted explaining options for financing parking.
334 Mayor Reinert remarked on his concern about paying for an opinion that says no.
335
336 Mayor Reinert asked Mr. Karlson to add the veterans' war memorial project to the report
337 for future updates.
338
339 10. Review Regular Agenda of May 9, 2016
340
341 The council agenda and background information was reviewed.
342
343 The meeting was adjourned at 9:35 p.m.
344
345 These minutes were considered, corrected and approved at they�o 'meeting held on
346 May 23, 2016.
347
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350 u i e Bartell, City Olerk Jeff
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