HomeMy WebLinkAbout12-10-2018 Council Meeting MinutesCOUNCIL MINUTES
December 10, 2018
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DATE
TIME STARTED
TIME ENDED
MEMBERS PRESENT
MEMBERS ABSENT
APPROVED
CITY OF LINO LAKES
MINUTES
: December 10, 2018
. 6:30 p.m.
. 9:10 P.M.
: Council Member Rafferty, Maher,
Manthey, Stoesz and Mayor Reinert
Staff members present: City Administrator Jeff Karlson; Community Development Director Michael
Grochala; City Planner Katie Larsen; Director of Finance Sarah Cotton; City Engineer Diane Hankee;
Director of Public Safety John Swenson; Human Resources Manager Karissa Bartholomew; and City
Clerk Julie Bartell
PUBLIC COMMENT
No one was present to address the council regarding a matter not on the agenda.
SETTING THE AGENDA
The agenda was amended to move the special presentation to the first meeting of 2019.
SPECIAL PRESENTATION
Certificate of Appreciation in Memory of Former Police Chief James Livingston
(postponed to January)
CONSENT AGENDA
Council Member Maher moved to approve the Consent Agenda, Items 1 A through 1 G, as presented.
Council Member Rafferty seconded the motion. Motion carried on a voice vote.
ITEM ACTION
Consideration of Expenditures:
December 10, 2018 (Check No. 109348 —
109418, $165,747.18) Approved
November 26, 2018 Council Work Session Minutes Approved
November 26, 2018 City Council Meeting Minutes Approved
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APPROVED
Consider Resolution No. 18-163, Establishing Polling
Places, 2019 Election
Approved
Consider Resolution No. 18-172, Approving Transfers for Approved
Final Installment Payment on Interfund Loan for Recreation
Complex Land
Consider approval of December 3, 2018 Work Session Approved
Minutes (closed session —Agenda Item #1 only)
Consider approval of December 3, 2018 Work Session
Minutes Approved
FINANCE DEPARTMENT REPORT
61 2A) Public Hearing — Consenting to and Granting Host Approval to the Issuance of a Revenue
62 Note by the City of Falcon Heights: i) Consider Resolution No. 18-173, Giving Host Approval to
63 the Issuance of Senior Housing and Health Care Revenue Notes (Heritage Apartments Project),
64 Series 2018 — Finance Director Cotton reviewed her written report. There is a proposal by Heritage
65 Apartments, Inc (Lyngblomsten) to develop a senior living campus in the City. To finance the proposal,
66 the developer is proposing the issuance of revenue bonds through the City of Falcon Heights, the sight
67 of another Heritage Apartments project. The City is required to give host approval in order for the City
68 of Falcon Heights to issue bonds for the development. A public hearing is required as well.
69 Mayor Reinert opened the public hearing. There being no one present wishing to speak, the public
70 hearing was closed.
71 Council Member Manthey moved to approve Resolution No. 18-173 as presented. Council Member
72 Stoesz seconded the motion. Motion carried on a voice vote.
73 2B) Public Hearing — 2018/19 Property Tax Levy and 2019 Budget: i) Consider Resolution
74 No. 18-174, Adopting the Final 2018 Tax Levy, Collectible in 2019; ii) Consider Resolution No.
75 18-175, Adopting the Final 2019 General Fund Operating Budget; iii) Consider Resolution No.
76 18-176, Adopting the 2019 Water and Sewer Operating Budgets; iv) Consider Resolution No.
77 18-177, Adopting the 2019 Recreation Fund Budget — Finance Director Cotton reviewed a
78 PowerPoint presentation including information on:
79 - Proposed tax levy (including general, special, voter approved); the levy amount is less than the
80 preliminary levy that was approved in September;
81 - Change in City Levy — comparison of levy over the past five years;
82 - Change in Tax Rates — comparison of rate over the past five years (does not include voter
83 approved referendum increases);
84 - 2019 Property Tax Distribution;
85 - Compution of Property Taxes — Comparison between payable 2018 and 2019;
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APPROVED
86 - Proposed General Operating Budget (what's included); historical look at the operating budget;
87 - Proposed 2019 Revenues;
88 - Proposed 2019 Expenditures;
89 - Proposed Water and Sewer Operating Budgets;
90 Mayor Reinert remarked that the council dedicated funding in 2019 to a beginning phase for the
91 recreation land at Centerville and Birch Street. It's an expensive proposition to develop in its entirety
92 so the council is looking at phasing. He noted that the council has also provided a portion of the
93 funding necessary to develop a war memorial in the City; he anticipates groups in the City will be
94 participating as well.
95 Mayor Reinert opened the public hearing. There being no one present wishing to speak, the public
96 hearing was closed.
97 Council Member Manthey moved to approve Resolution No. 18-174 as presented. Council Member
98 Stoesz seconded the motion. Motion carried on a voice vote.
99 Council Member Rafferty moved to approve Resolution No. 18-175 as presented. Council Member
100 Maher seconded the motion. Motion carried on a voice vote.
101 Council Member moved Maher to approve Resolution No. 18-176 as presented. Council Member
102 Manthey seconded the motion. Motion carried on a voice vote.
103 Council Member Manthey moved to approve Resolution No. 18-177 as presented. Council Member
104 Stoesz seconded the motion. Motion carried on a voice vote.
105 2C) Consider Resolution No. 18-178, Amending the 2018 General Operating Budget — Finance
106 Director Cotton explained that the resolution represents the 2018 budget as amended through the year.
107 A listing of the budget adjustments is attached to her staff report.
108 Council Member Maher moved to approve Resolution No. 18-178 as presented. Council Member
109 Manthey seconded the motion. Motion carried on a voice vote.
110 2D) Consider Resolution No. 18-179, Committing Specific Revenue Sources in Special Revenue
111 Funds — Finance Director Cotton explained that the resolution commits resources to the operation of
112 City sponsored recreation programs and cable television revenue as planned.
113 Council Member Stoesz moved to approve Resolution No. 18-179 as presented. Council Member
114 Maher seconded the motion. Motion carried on a voice vote.
115 2E) Consider Resolution No. 18-180, Reducing the 2018/2019 Debt Service Tax Levy for
116 G.O. Bonds, Series 2018A — Finance Director Cotton explained that the resolution will reduce the
117 levy for the debt service for a certain issuance based on staff s findings that adequate revenue is
118 available for said debt service.
119 Council Member Rafferty moved to approve Resolution No. 18-180 as presented. Council Member
120 Maher seconded the motion. Motion carried on a voice vote.
121 ADMINISTRATION DEPARTMENT REPORT
122 3A) Consider Wage Adjustment for Pay Equity Compliance — Human Resources Manager
123 Bartholomew explained that staff is requesting a wage change for the Payroll Technician position.
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124 The wage change is requested to bring the position into an appropriate salary based on market
125 findings and to bring the City into compliance for the purpose of pay equity. She noted that the
126 City's compliance situation is also impacted by the fact that the Police Sergeants have not yet settled
127 their agreement; that will change the equation.
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129 Mayor Reinert remarked that many of the highest paying jobs for the City are held by women so he
130 wonders what puts the City out of compliance. Ms. Bartholomew noted that the Police Sergeants are
131 not represented with women; she also noted that the lower classifications are thought to be out of line
132 and so it makes sense that those classifications will be reviewed.
133 Council Member Maher moved to approve the wage adjustment as recommended. Council Member
134 Manthey seconded the motion. Motion carried on a voice vote.
135 3B) Consider Appointment of Building Permit Technician — Human Resources Manager
136 Bartholomew read her written report.
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138 Council Member Rafferty remarked that the Building Department has been especially busy in the past
139 couple years. He is thankful for the good work of Ms. Woltjer and wishes her the best in her
140 retirement.
141 Council Member Manthey moved to approve the appointment of Brianna Freeman as recommended.
142 Council Member Stoesz seconded the motion. Motion carried on a voice vote.
143 3C) Consider Appointment of Recycling Intern - Human Resources Manager Bartholomew read
144 her written report.
145 Council Member Maher moved to approve the appointment of Katie Stelzner as recommended.
146 Council Member Rafferty seconded the motion. Motion carried on a voice vote.
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148 PUBLIC SAFETY DEPARTMENT REPORT
149 4A) Consider Replacement of Vehicle 390 — Public Safety Director Swenson requested that the
150 council authorize replacement of a police fleet vehicle. It would be replaced by a newer vehicle that
151 has become available through the forfeiture process. The replacement would reduce the ultimate cost
152 of replacing the current vehicle. He noted the cost of fitting the new vehicle to be suitable for police
153 service, to be paid through forfeiture funds.
154 Council Member Maher moved to approve the vehicle replacement as recommended. Council
155 Member Rafferty seconded the motion. Motion carried on a voice vote.
156 4B) Consider Acceptance of Coss Family Foundation Donation— Public Safety Director
157 Swenson reported on the availability of a donation that could fund the purchase of a utility vehicle to
158 serve the Public Safety Division. The cost of the vehicle beyond the donated funds would be funded
159 by the forfeiture money.
160 Council Member Stoesz remarked that the vehicle should help to recruit individuals to safety service.
161 Mayor Reinert thanked the Coss Family Foundation for their donation.
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162 Council Member Maher moved to accept the donation as recommended. Council Member Stoesz
163 seconded the motion. Motion carried on a voice vote.
164 PUBLIC SERVICES DEPARTMENT REPORT
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166 There was no report from the Public Services Department.
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168 COMMUNITY DEVELOPMENT DEPARTMENT REPORT
169 6A) Watermark: i.) Consider Resolution No. 18-143, Approving PUD Final Plan/Final Plat;
170 ii) Consider Resolution No. 18-144, Approving Master Development Agreement; iii) Consider
171 Resolution No. 18-145, Approving Ist Addition Development Agreement — City Planner Larsen
172 reviewed a PowerPoint presentation including information on:
173 - Council action items;
174 - December 3,d work session discussion;
175 - Overview of PUD Development Stage Plan;
176 - PUD Final Plan;
177 - Housing Types and Products proposed;
178 - Architectural Standards;
179 - Landscaping;
180 - Parks and Open Space;
181 - Development Agreements;
182 - Recommendation of Environmental and Planning & Zoning Board.
183 Mayor Reinert remarked that he is hearing staff say that the developer can change the plans. Is that in
184 the development agreement?
185 City Attorney Squires noted that the development agreement (discussed at the work session) and the
186 core values statement that is contained within the agreement includes language allowing for developers
187 to request changes but there is no obligation for the City Council to grant those requests. Mayor
188 Reinert asked if the agreement denotes what changes can be requested. Attorney Squires noted Article
189 4 of the Master Development Agreement that identifies the features that could be subject of a change
190 (he noted public park language as an example).
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192 Mayor Reinert remarked that Watermark is a project that may be under development for a decade. It's
193 important to understand that flexibility. There will no doubt be future turnover on the council and that
194 could represent something different than the spirit intended by this council. He asked how the council
195 could put a lasso around this to keep such things as density and housing type as they are presented now.
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197 Attorney Squires responded. He believes the Master Development Agreement will bind the entire
198 project together. Could a future council's action be determined now; his response would be that you
199 cannot bind the hands of a future council. But the agreement is saying "this is our vision of the entire
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APPROVED
200 development now".
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202 Mayor Reinert asked again if density and housing type for the entire project can be secured now.
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204 Attorney Squires suggested that the council is doing that with the proposed action. The council cannot
205 say that a future council cannot amend agreements in place. He noted that he sees the core values as
206 providing good bench marks however.
207 Mayor Reinert remarked that he remains concerned that there is language requested that indicates that
208 changes can be requested by the developer in the future. He understands that there are core values but
209 it seems to him that the language would allow changes in the future. He asked staff to comment.
210 Community Development Director Grochala explained that there is a difference between what would
211 require an amendment to the plan and what wouldn't. Staff has numbers built into the plan; there are
212 requirements for park land for instance. Some changes would clearly require an amendment approved
213 by the council; other changes that remain within the required approval can be requested without going
214 through the formal plan amendment process but would still require council approval. Mayor Reinert
215 remarked that he would prefer that every change require the formal plan amendment process.
216 Council Member Manthey noted that the number of homes is locked in for current and future
217 developers; he sees the importance of having that is place.
218 Community Development Director Grochala explained that anything not included in the scope of the
219 development agreement would be outside the agreement and would require formal process.
220 Mayor Reinert asked what would happen with a change from single family to something else. Mr.
221 Grochala said that would require a formal process.
222 Mayor Reinert asked if all financial obligations are in place. Ms. Larsen explained the process to
223 ensure financial obligations are in place.
224 Maor Reinert asked if all engineering and construction plans are complete. Ms. Larsen said yes with
225 the understanding that there could be a couple minor tweaks coming.
226 Mayor Reinert asked if the HOA agreements are in place.
227 Mayor Reinert asked if all permits are in place.
228 Mayor Reinert asked if all easements and deeds are in place. Ms. Larsen said that is completed with
229 the mylars.
230 Mayor Reinert read a portion of the proposed agreement. He feels the council is being asked to vote
231 on this without everything in place.
232 Mayor Reinert read language that requires the City to complete the Peltier drainage project as part of
233 this agreement; he is concerned that is a big project and it's difficult for the City to commit at this time,
234 especially by including a date. The catalyst for getting the channel project done is this development
235 project.
236 Community Development Director Grochala noted the channel project and that the council has heard
237 about the plans, discussions have been had with property owners, and other project preparations, so
238 completion of that project is certainly doable from an engineering perspective.
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APPROVED
239 Council Member Manthey said he felt some concern about that language but he understands that there
240 are surface water needs in the area.
241 Mayor Reinert said he is concerned that this council and future council should not be bound to make
242 bad decisions.
243 Council Member Stoesz said he is also concerned about language on the surface water project; there is
244 no flexibility on the date to complete. Mr. Grochala explained the rate structure for surface water
245 management, typically collected on a phase basis; the amount in this development requirement applies
246 the amount as an assessment across all the acreage; it isn't subject to change.
247 Mayor Reinert asked the cost of the channel project and Mr. Grochala said approximately $3 million.
248 The mayor asked how staff knows that $2.1 million to the developer is the correct amount; Mr.
249 Grochala said it is based on calculation of established City charges. Mayor Reinert suggested this is
250 not an average project.
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252 Mayor Reinert noted that surface water reuse is mandated by this document. That's a fairly new idea
253 but he sees it as a good idea to use pond water for irrigation. He doesn't like the word "mandate" for
254 that project though. Mr. Grochala explained what is proposed — what areas will be served by surface
255 water irrigation and those that would be served by typical methods. Engineer Hankee explained that
256 there are rules and regulations about use of the surface water and information will be posted.
257 Council Member Stoesz remarked that the "mandate" occurs in two areas of the agreement.
258 Council Member Manthey recalled past council discussions that brings the process forward for part of
259 the project.
260 Engineer Hankee explained when the typical irrigation system would kick in. She also noted use of the
261 surface water irrigation model in other cities; there is not concern about the process.
262 Mayor Reinert noted language in the agreement allowing the developer to periodically change financial
263 security but he doesn't see any guidelines to manage that. Attorney Squires said it is typical in a
264 development agreement to allow a reduction in security as work is completed and the project moves
265 on. The referenced language allows a request only once per month. The approval is normally not
266 brought to the council. Mr. Grochala noted that posted security and staff (engineer) review and
267 approval is involved. Mr. Grochala noted the language related to the Letter of Credit.
268 Mayor Reinert noted language on park dedication that appears to bind the City. Mr. Grochala
269 explained the location of the park and when the park dedication language occurred in the process and
270 how it will be used going forward.
271 Mayor Reinert discussed the language on the clubhouse, reading that it is to be constructed at "518
272 building permits ". Mayor Reinert proposed instead of 518 building permits that it read "518 lots
273 approved".
274 Mayor Reinert pointed out language that requires the Peltier lake channel to be built by 2020; he asked
275 the council about their opinion on the language. Council Member Maher asked about the rationale?
276 Mr. Grochala explained that the developer cannot go forward with phases (even with grading) that they
277 have committed to without the water outlet that would allow for approval from the watershed district;
278 that year is doable from a construction standpoint.
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APPROVED
279 Mr. Jablonski, Lennar, explained that they have worked long and hard on this agreement with staff,
280 Lennar has an additional seven acres they can improve; timing is critical to them; they want to build it
281 out the way the council wants; they are agreeing to a master development agreement; they can only go
282 so far; the Peltier situation is related to storm water requirements and it has their hands strapped on
283 how far they can go; they have contractual obligations including with Mattamy; if they cannot build,
284 the investment doesn't make sense; the channel item is seen as critical.
285 Mayor Reinert said he cannot vote for that though. Mr. Jablonski remarked that to have successful
286 development there has to be work between the developer and the City. They are agreeing to the plan
287 before the council now but that particular item is critical. Mayor Reinert argued that "but for" this
288 development there is not urgency for the City to get the channel project done. Mr. Jablonski pointed
289 out that their 350 acres is less than half of the area that will benefit from the channel improvement but
290 they are paying for more than half the costs and are paying it up front. Mr. Grochala added that
291 Lennar's payment on that will also be backed up by a Letter of Credit.
292 Mayor Reinert noted that the Master Development Agreement (MDA) is tied to the first phase and also
293 every additional phase. Attorney Squires said the MDA would umbrella over all phases; each addition
294 that comes on line will have a development agreement that is unique to that phase but the MDA still
295 binds on its terms; the agreements are meant to work together and layer together.
296 Mayor Reinert remarked that Article 1 of the MDA calls for certain guarantees; he's not sure they are
297 in place and thinks they should be done if a vote is expected. Council Member Rafferty said he
298 doesn't disagree but recognizes the size of the development and the phasing; getting the payment up
299 front is important and he sees the value. The homeowners' association element has been a sticking
300 point for him; he is putting faith in the attorney and staff because the effect is great. Council Member
301 Manthey said he understands that concern.
302 Mayor Reinert asked about an alternative to having a date requiring completion of the Peltier channel?
303 Mr. Grochala said it could only be extending the date. Mr. Jablonski noted that Lennar is making a
304 commitment to the City and is asking for a commitment back in this area. Mayor Reinert said he likes
305 the term "best efforts".
306 Council Member Manthey asked if Lennar has experienced a situation where dates haven't been met
307 and Mr. Jablonski said cities have either met the dates or have been able to do so shortly thereafter
308 (because the commitment was there to get it done as close to on time as possible). Mayor Reinert
309 suggested that "best efforts to complete by 2020" in the contract rather than the date should be
310 sufficient then. Mr. Jablonski clarified that this is what is tied to the elevations of the pond system and
311 there is design to accommodate in the meantime so the timing is tied to disturbed area. Community
312 Development Director Grochala suggested, if "best efforts" clause is done, is the council ready to
313 support Lennar with the watershed district to allow that next phase grading that is needed prior to that
314 outlet being completed. The mayor suggested that the council would consider future action but further
315 explained that he doesn't want to tie the City to a drop dead date and he'd also like the club house
316 change (to 518 houses); those are the changes he'd like to see. Mr. Jablonski said they'd be in
317 agreement but clarified that they'd have to have houses at the clubhouse area at that figure; Mayor
318 Reinert said the City will work with the developer over the course of this long project.
319 Attorney Squires outlined the proposed changes to the MDA:
320 - Article 5.1 - ...and shall "use best efforts to complete the same on or before December 31 "; and
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321 - Article 9.1 - second change from "518 permits" to "518 lots have received final plat approval".
322 Mr. Jablonski said, on behalf of Lennar, he supports the changes.
323 Regarding Article 6.8 (a) of the MDA, Council Member Stoesz asked to strike the word "primary" but
324 Council Member Manthey said he likes that word.
325 Council Member Manthey moved to approve Resolution No. 18-143 as presented. Council Member
326 Maher seconded the motion. Motion carried on a voice vote.
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328 Council Member Manthey, with changes proposed to Article 5.1 and Article 9.1 of the Master
329 Development Agreement, moved to approve Resolution No. 18-144 as presented. Council Member
330 Maher seconded the motion. Motion carried on a voice vote.
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332 Council Member Rafferty moved to approve Resolution No. 18-145 as presented. Council Member
333 Maher seconded the motion. Motion carried on a voice vote.
334 613) Consider Resolution No. 18-171 Approving a Conditional Use Permit for Commercial
335 Stables at 1288 Main Street and 1325 Main Street — City Planner Larsen reviewed the background
336 for a request for a conditional use permit to allow a commercial stable. She noted the location,
337 history of operations (as stables), rural zoning, animals allowed within zoning, submission of waste
338 management plan allowing 36 animal units, and general comments. She discussed accessory
339 structures that are allowed on the site, the number that exist and the number that will be allowed with
340 this conditional use permit. Recently the council made changes to the code regarding commercial
341 stables and this will comply. She reviewed the Planning and Zoning Board recommendation to
342 approve with certain conditions. She reviewed the number of portable horse shelters they would like
343 to add. She added an a recommendation regarding the storage of horse trailers that they have included
344 as a condition.
345 Council Member Stoesz remarked that this type of property is part of what he likes about Lino Lakes
346 and he'd like to give them as much flexibility as possible. He moved to allow double the number of
347 temporary horse shelters from 10 to 20 and allow for the horse trailers without covering.
348 Mayor Reinert confirmed that there are other buildings available for the animals (in addition to
349 temporary shelters). He asked the applicants if ten shelters are enough and they said "plenty".
350 Council Member Manthey moved to approve Resolution No. 18-171 as presented. Council Member
351 Stoesz seconded the motion. Motion carried on a voice vote.
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353 6C) Consider 2nd Reading of Ordinance No. 19-18 Rezoning Certain Properties Along West
354 Shadow Lake Drive from R, Rural to R-IX, Single Family Executive Residential and PSP,
355 Public and Semi -Public — City Planner Larsen reviewed the written staff report, and briefly reviewed
356 the recommendation. The council approved the Pt reading of this ordinance at their last meeting.
357 Council Member Maher moved to waive the full reading of Ordinance No. 19-18. Council Member
358 Rafferty seconded the motion. Motion carried on a voice vote.
359 Council Member Rafferty moved to approve the 2nd Reading and passage of Ordinance No. 19-18 as
360 presented. Council Member Maher seconded the motion. Motion carried: Yeas, 5; Nays none.
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6D) Consider Resolution 18-181, Authorize the Preparation of Plans and Specifications, 2019
Mill and Overlay Project — City Engineer Hankee reviewed her written staff report. She reviewed
the type of work that would be done and the streets that are recommended to be included. She noted
an alternate project that would be included in the bid process and completed if possible. She added
that a section of Birch Street will be improved by Anoka County; staff will be coordinating projects.
Council Member Stoesz asked if the City can require the contractor to have gender equity; Ms.
Hankee said she believes that is already included in the specifications.
Council Member Maher moved to approve Resolution No. 18-181 as presented. Council Member
Manthey seconded the motion. Motion carried on a voice vote.
6E) Consider Resolution No. 18-182, Authorizing Preparation of Feasibility Report for Well
House No. 7 (509 Birch Street) — Community Development Director Grochala reviewed the written
staff report. He reviewed progress to date on acquisition of this older property with plans to utilitize
it as a future well house. Mayor Reinert commented on the history of the structure.
Council Member Maher moved to approve Resolution No. 18-182 as presented. Council Member
Rafferty seconded the motion. Motion carried on a voice vote.
UNFINISHED BUSINESS
There was no Unfinished Business.
NEW BUSINESS
There was no New Business.
COMMUNITY EVENTS
SECRET HOLIDAY SHOPPING will be held at 1189 Main Street on Wednesday & Thursday,
December 12 & 13 from 4:30 p.m. to 7:00 p.m. For additional information contact 651-982-2440.
MONTHLY RECYCLE DAY will be held at Lino Park (7850 Lake Drive) on Saturday, December 22
from 10:00 a.m. to 2:00 p.m. See city website for a list of accepted items.
TOYS FOR JOY, GRANNY'S CLOSET & ONE WARM COAT DROP OFF is located at Lino
Lakes City Hall. Collection of toys and food for the upcoming holiday will serve folks right here in
our community. For more information, please contact Lisa at 651-982-2424.
COMMUNITY CALENDAR
Community Calendar —A Look Ahead
December 10, 2018 through December 26, 2018
-4: Wednesday, December 13 6:30 pm, Council Chambers Planning & Zoning Board
Monday December 24 City Hall Closed Holiday
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APPROVED
- Tuesday, December 25 City Hall Closed Holiday
Since this would be the final council meeting of the year, Mayor Reinert asked to remember those
who passed this year and also wished a Merry Christmas to everyone. Council Member Rafferty
thanked the Public Safety Department for last weekend's event at the Fire Station. Mayor Reinert
thanked staff for the Christmas lights outside city hall.
ADJOURN
There being no further business, members of the council moved to adjourn at 9:10 p.m. Motion
carried.
These minutes were considered and approved at the regular Council Meeting,
J i dBartell, City C erk Jeff
14, 2019.
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