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HomeMy WebLinkAbout11/12/1985 Council Minutes0176 COUNCIL MEETING November 12, 1985 The regular meeting of the Lino Lakes City Council was called to order at 7:00 P.M. by Mayor Benson. Council members present: Bohjanen, Reinert, Marier and Kulaszewicz. Members absent: none. City Attorney, Bill Hawkins; Engineer, Bob Toddie; Auditor, Rob Tautges; Building Inspector, Peter Kluegel; Public Works Director, Don Volk; Administrator, Randy Schumacher; Clerk- Treasurer, Marilyn Anderson were also present. Mr. Herb Johnson, Cable TV Representative and Councilman- elect, Harold Bisel were in the audience. CONSIDERATION AND APPROVAL OF MINUTES - October 28. 1985 Mr. Bohjanen moved to approve these minutes. Mr. Kulaszewicz seconded the motion. Mr. Marier noted on page two, last paragraph, second line, the word "ton" should read "ten ". Motion carried to include the correction. CONSIDERATION AND APPROVAL OF DISBURSEMENTS October 31, 1985 - Mr. Marier moved to approve these disbursements as presented. Mr. Kulaszewicz seconded the motion. Motion carried unanimously. November 12, 1985 - Mr. Bohjanen moved to approve these disburse- ments as presented. Mr. Reinert seconded the motion. Motion carried unanimously. OPEN MIKE Mr. Alan Irwin of 6466 Totem Trail appeared before the Council to tell them of the problem he is having regarding his house settling and his inability to obtain correction from either the builder or the new home warranty insurance. He had several items of correspondence and other materials that were relevant to his situation and passed copies of them to the Council members. He explained that his house was built in 1978 and built on peat soils. He detailed his search for soil tests that should have been performed on his lot before the footings were poured but has not been able to determine if tests were ever performed. He cited some state laws which would require soil tests on lots such as his and the Lino Lakes Code requires that there will be no building on soils such as are present on his lot until the builder proves his construction techniques will allow for unsuitable soils. This proof must be certified by a registered engineer. To his knowledge this was not done, however the Building Inspector at that time and the builder did build a bond beam of which there is no recprd. Cracks appeared in the house basement within the first year of being built and the builder did patch the cracks. Within six months the cracks reappeared. Now the back of his house has settled about 2i ". The INA insurance company did send an engineer to check his house and he reported there was some damage but 1 1 1 1 1 0177 COUNCIL MEETING November 12, 1985 Page Two not detrimental to the house and the footings would support the weight of the house. Soil tests were not taken at this time and Mr. Irwin's claim was rejected because the ground is not part of the insurance liability, only the building structure. He called the builder and told them the insurance company said the ground under the house is the builder's responsibility. The builder said his obligation expires two years after the house is built. Mr. Irwin said he believes this statement is contrary to state law. Mr. Irwin contacted the attorney general who suggested trying voluntary arbitration and binding arbitration was scheduled. However, Mr. Irwin said this could affect a potential lawsuit and so he is not pursuing it at this time. He asked the Council if they can make any suggestions or recommendations. It was determined that the records of the City have been searched and there are no records of soil tests. Mayor Benson suggested that Mr. Irwin contact Ken Rehbein directly. Mr . Reinert said this would be a civil matter and he should pursue this with an attorney. Mr. Hawkins said this appeared to be a civil matter and the City would provide help as far as providing access to all records on the matter and the availability of the building official. He should explore with the help of an attorney the liability of the City or a potential claim against the City. Mr. Irwin asked if the City could ask Mr. Mobley, former City Building Official to write a letter indicating what he observed. Mr. Hawkins said that since Mr. Mobley is no longer an employee, the City has no control over him. However, depositions could be obtained from Mr. Mobley if a civil action were started. Mr. Kluegel told Mr. Irwin he would recheck the files and let Mr. Irwin know if anything is found. Mr. Marier said the City would make any information available to Mr. Irwin and suggested he contact the directly. it has builder AUDITOR'S REPORT - ROB TAUTGES Revenue Sharing Compliance Audit - Mr. Tautges has supplied the Council with the compliance audit and explained this is an audit required once every three years. The conclusion of the audit was that the City did a good job of monitoring the administrative procedures of the Revenue Sharing program. He also explained that the funding of this program is scheduled to expire in September 1986. This should be considered in the 1986 budget plans. 0178 COUNCIL MEETING November 12, 1985 Page Three Representation on the Joint Circle Pines, Lino Lakes Gas Utility Commission -Mr. Tautges presented a report based on a proposed seven member commission. The report has no conclusion on representation but was designed to give the Council some ideas on what the Council may base representation on. He felt that Lino Lakes has a greater potential for development than Circle Pines and by 1990 Lino Lakes could be the larger portion of the joint franchise. He suggested the City should consider the financial terms of the franchise agreement mainly on the expense side. The allocation of expenses should be researched and he has prepared a draft engagement letter in which his firm would research the existing expense allocation methods and come up with some recommended terms for the upcoming franchise renewal. This proposed engagement letter is in draft form and he would like the Council's response as to what they are looking for from his office. Mayor Benson asked Mr. Tautges how he planned to use the sixty hours suggested in the draft proposal. Mr. Tautges outlined this proposal and said in the future the Lino Lakes portion of the costs of the gas system should be more predictable. He also noted that now is the time for the City to do its homework so that it can enter into a new franchise agreement for its own best interest. Mr. Marier said this should be a joint venture and all should keep a good attitude. At this time, we are just asking questions, but should be very professional. Mr. Bohjanen moved to approve the draft agreement. Mr. Marier seconded the motion. Motion carried unanimously. Mayor Benson said the City is aware of its potential position in the franchise agreement and wants a viable situation for both cities, but does not want to create hard feelings. CONSIDERATION OF WEST OAKS LETTER OF CREDIT EXTENSION - HOMER BRUGGEMAN Mr. Bruggeman was not in the audience and this matter will be handled later in the meeting. ENGINEER'S REPORT A. Followup with Rice Creek Watershed District Engineer to Determine if RCWD is Performing a Feasibility study on Res- toration of ditch #22 (4th Avenue) - Mr. Toddie has talked to Pete Willenbring, Engineer for the RCWD and he is making a field survey of #22 and will contact Mr.IToddie to let him know what is involved with the restoration of this ditch. The 4th Avenue plans are proceeding and he is planning on running some of the storm water west to Ditch #22. Mr. Toddie will be discussing this drainage with the County Engineer so there will be a three way effort to take care of the drainage in this area. 1 1 1 COUNCIL MEETING November 12, 1985 Page Four Mayor Benson asked about a pump that was moving water from a city ditch and moving the water west to the west end of the Lino Air strip. Mr. Volk explained this was being done by a private landowner who was trying to dry his lot enough to landscape. Mr. Marier noted that this Council has asked the RCWD to study the maintenance of ditch #22 not to upgrade it. Mr. Toddie agreed this is the manner that RCWD is approaching the study. B. Wilson Lawsuit - Mr. Toddie and Mr. Hawkins have conferred as to what is now needed to proceed on this legal matter. It will be approached in three phases: 1) determine if area in question is feasible as a storm water retention area; 2) determine the feasibility of mining the peat from the area and the ramifications; 3) write a formal report. Mr. Toddie explained that item #1 would cost 5 % -10% of project; 25% - 30% for hydraulic analysis for Mr. Hawkins use in entering further negotiation with Mr. Wilson; 20% or more to determine feasibility of mining the peat; 30% or more would be the report. If the report is not necessary, it will be dispensed. Mr. Hawkins said the end result may not be less costs, but by doing it in phases, all the money will not be spent up front. Mr. Marier moved to approve the first step; feasibility of storm water retention. Mr. Kulaszewicz seconded the • motion. Motion carried unanimously. PUBLIC WORK'S REPORT - DON VOLK A. Storm Sewer Installation West Shadow Lake Drive - Mr. Volk had included in the Council packet the cost of $4,754.00 to install 190 feet of corrugated pipe to enclose an eighteen foot drainage easement on West Shadow Lake Drive. This would include restoration of the area and would only be a temporary solution to the problem since West Shadow Lake Drive is designated a municipal state aid road and when it is brought up to state aid status, some drainage correction would also be included. Mayor Benson asked if it would be prudent to spend this sort of money on a temporary solution. Mr. Volk felt it would not be and gave a history of how this road was con- structed. 0179 COUNCIL MEETING November 12, 1985 Page Five Mr. Pat Smith of 7002 West Shadow Lake Drive told the Council he was concerned about some of the septic systems in the area in that they are located on the street side of the lots and may be infiltrated by the storm water coming off the streets. He said he would supply sand fill, sodding and truck time for the construction if the City would pay for the culverts. Mr. Reinert was concerned that this culvert could provide access to the lake for some septic overflow. Mr. Smith said there are 10 -12 homes in this area and because there is not adequate drainage) storm water fills the ditches and stands for a considerable amount of time. He felt if the water could drain from the area properly the storm water would not interfere with the operation of the septic systems. Mr. Reinert felt this should be looked at closer. Mr. Smith said there was at least one septic system not working properly. Mr. Volk said that just installing the proposed culvert would not correct the drainage problem in the area. It would correct the inconvenience of the property owners adjoin- ing the drainage easement only. Mayor Benson asked Mr. Volk and Mr. Kluegel to gather more information especially involving where the septic problem may be. He asked Mr. Kluegel to determine if this culvert were installed would it solve this particular septic problem and bring this information to the next Council meeting. ATTORNEY'S REPORT A. Rehbein Lawsuit - Mr. Hawkins had given the Council a written update on the Rehbein lawsuit. He had no further report. B. Group W Cable TV Rate Change Request - Herb Johnson - Mr. Johnson told the Council that attorney Thomas Creighton has prepared and sent to the Council a packet that outlines proposed franchise amendments as passed by the Cable Commission by resolution recommending amendments in the areas of institutional network, rate freeze and rates. Also included were three proposed ordinance amendments and a proposed resolution which serves to adopt the three ordinances. Mr. Johnson introduced Mark Ayotte, Associate of Thomas Creighton and Mike Cusick, Administrator for NCSCC who were in the audience. Mr. Ayotte was present to explain the various proposed changes. Mr. Johnson briefly explained that the tower and hub site on Old Birch Street is progressing and they hope to be marketing in Lino Lakes by December. Mayor Benson asked about the monitor at City Hall where information is typed into the system. Mr. Johnson said color monitors will be utilized so that the person typing information that is immediately shown over the system can see the information as it is typed. All city activities can be sent out with this system as well as agenda items for instance. 1 1 COUNCIL MEETING November 12, 1985 Page Six - 0181 Mr. Johnson said there will be training sessions available for users of port -a- packs. The cost of the courses will be $5.00 and a training room is needed. He asked for Council approval to use City Hall one night a week for this training. Equipment would be supplied by the Commission. Mayor Benson felt this was a little premature until cable TV is actually installed in the homes. Mr. Ayotte explained he is an associate to Thomas Creighton who is the legal consul to the Cable Commission and wanted to make it clear they do not work for the Cable Company. He explained the packet that was sent to the Council and said that for several months the Cable Commission has been negotiating with Group W cable to determine modification to the original cable agreement. At the October 28, 1985 Cable Commission meeting a resolution was adopted which summarizes the result of their negotiations and recommends aPProval of the amendment. The first item in the packet is Agreement #1 which is separate from the original franchise ordinance. The three franchise amendments which are recommended by the cable commission are; 1) rate freeze; 2) rate; 3) institutional network. The rate freeze in the original ordinance provided for a period of three years after the franchise was certified by the state or for two years after construction is complete, whichever is longer, the rates will be frozen. Federal legislation has modified this ordinance provision and the cable commission is recommending that the rates be frozen until January 1, 1987. This would bring the cable agreement into compliance with federal law. The second amendment deals with Exhibit A which contains all the rates and service. This is affected by the federal legislation as well as some other rates that the City can continue to regulate. These proposed new rates affect tier one service and tier two service. The third amendment deals with institutional networks. The institutions have been placed in A, B and C categories with different rates. Mr. Marier asked the reason for the rate increase. Mr. Ayotte said federal legislation is deregulating cable rates by the end of 1986. Group W is asking that they be allowed to imple- ment the new rates now. Also they have experienced higher than anticipated construction costs and lower penetration, or less customers than planned. Mr. Reinert asked if federal legislation is going to supercede whatever this City does in the area why is/the City going through this now. Mr. Ayotte said the federal law allows a two year grandfather provision. So if Group W is going to be allowed to charge the higher installation rate and higher rate for tier II they can only do this with the City's blessing. If the City does not agree these two rates cannot be increased. COUNCIL MEETING November 12, 1985 Page Seven Mayor Benson asked what if Lino Lakes did not go along with this and the other Cities do. Mr. Ayotte said if one City did not approve the rate increases then Group W is automat- ically prevented from increasing rates in all eight Cities. The franchise requires the rates be uniform. He explained all eight Cities have received this information, however Lino Lakes is the first City to consider the amendments. He also explained these negiotations did not solely focus on these ordinance amendments. Mr. Marier said the Council is being used as a Public Service Commission for rate increases. Mr. Ayotte said the Cable Comm- ission was established to deal with this question and informa- tion was provided to the Commission, they asked more questions and then did the "dirty work" for the City and what is before the Council is their recommendations. Mayor Benson said there were trade offs to get the Cable Commission to agree to these amendments. Mr. Mel Smith was concerned about a kit that can be purchased by homeowners to install in their own yards for satellite re- ception. He asked what type of ordinances will this City pass to prevent Lino Lakes from becoming "Saucer City ". Mayor Ben- son said the Planning and Zoning Board is looking into this matter. Mr. Schumacher asked what the time table is for having all eight Cities input. Mr. Ayotte said there is no time table but the agreement would be effective sixty (60) days after the last or- dinance becomes effective in the last City. This process could take four months. Mayor Benson asked that these ordinances and resolutions be numbered and placed on the next agenda. CONSIDERATION OF A REQUEST FOR VARIANCE TO SET BACK - CORNER LOT. EL REHBEIN & SON Mr. Marier moved to have this item removed from the agenda as re- quested by El Rehbein & Son. Mr. Bohjanen seconded the motion. Mo- tion carried unanimously. CONSIDERATION OF ADVERTISING FOR BIDS FOR BLACK DUCK CITY OWNED LOTS Mr. Schumacher prepared a request for Council action to advertise for sale the ten (10) City owned lots. These lots have been pre- viously advertised and the Council chose not to award bids until it was determined if Lot 2 could be utilized for water storage. Based upon information from the City Engineer the costs of develop- ing the lot for water storage would out weigh the benefit of build- ing on the lot. Therefore it is Mr. Schumacher's recommendation to 1 1 1 1 0183 COUNCIL MEETING November 12, 1985 Page Eight place the lots on bid per state statute and City Charter require- ments. Mr. Toddie explained the problems involved with developing the lot. Mayor Benson asked that Mr. Schumacher prepare the notice of adver- tisement for bids and then have Mr. Hawkins read the notice to be sure the notices are correct. Mr. Kulaszewicz moved to approve Mayor Benson's suggestions. Mr. Reinert seconded the motion. Motion carried unanimously. CONSIDERATION OF MARILYN ELSENPETERS STATUS ON THE FIRE COMMISSION Mrs. Elsenpeter is an alternate to the Fire Commission. Recently a vacancy has occurred on the Commission and Mr. Schumacher asked Mrs. Elsenpeter to assume this position. Mrs. Elsenpeter has de- clined stating that she had a conflict on the Commission Meeting night. However, she would like to continue in the alternate post. Mayor Benson said that if Mrs. Elsenpeter wishes to continue as an alternate she should be encouraged to do so. Mr. Marier moved to advertise for the vacant position on the Fire Commission. Mr. Bohjanen seconded the motion. Motion carried un- animously. Mayor Benson asked that a letter be sent to Mrs. Elsenpeter asking that she continue as the alternate on the Fire Commission and ask - ing if she can attend the Joint Meeting on November 14, 1985. CONSIDERATION OF APPOINTING PARK BOARD MEMBER The City has received three applications for the one vacant posi- tion on the Park Board. Mr. Bohjanen read the three applicants' letters. Mr. Bohjanen moved to appoint Gary Volk to the Park Board. There was no second to this motion. Motion died. Mr. Reinert moved to appoint Steven Wells to the Park Board. There was no second to the motion. Motion died. Mayor Benson suggested that the City check with the Park Board mem- bers whose terms will be expiring at the end of the year to deter- mine if they wish to be re- appointed. There may be more vacancies. Mr. Reinert felt it was up to the Council to appoint a member. Mr. Kulaszewicz moved to have the City Administrator talk to each of the three applicants and come to the Council with his recommendations at the next meeting. Mr. Bohjanen seconded the motion. Motion car- ried with Mr. Reinert voting, no. 0184 COUNCIL MEETING November 12, 1985 Page Nine CONSIDERATION OF WEST OAKS LETTER OF CREDIT EXTENSION - HOMER BRUGGEMAN Mr. Schumacher explained this was discussed at the last Council Meeting. The City is holding an eighty thousand dollar letter of credit which is due to expire January 1, 1986 for installation of storm sewers, boulevards and streets in a portion of West Oaks. Mr. Schumacher has checked with North Central Public Service and they confirmed what was discussed at the last Council Meeting. The installation of interior lines will be installed next spring with the trunk line to be installed in two or three years. Mayor Benson asked why North Central has not already installed the interior lines. Mr. Schumacher explained that there is a require- ment that the contractor has to pay money up front. As develop- ment takes place this money is returned to the contractor. Mr. Bruggeman was not willing to pay this fee. Mr. Marier asked why North Central is going into this area without coming to the Council. Mr. Schumacher said that this is North Cen- trals franchise area and they will be coming to the Council with an application. This is a non - exclusive franchise so that the Council could consider other gas utilities. Mr. Marier said there are several questions: 1) who is going to serve this area; 2) what is the time table; 3) what about the road, there still is time to get this road completed. Mr. Schumacher explained this plat is being developed in phases and there is no contractors agreement. There is just the letter of credit for one and one half times the cost of the entire project. Mr. Fred Chase felt the street cannot be completed this year because drainage needs to be completed first. Mr. Smith said there had been a surveyor placing stakes on Monday. He also noted the sub -base must also be placed on the street before blacktop. Mr. Chase said the driving surface is fine now but felt it could be a problem next spring. Mr. Volk stated the present road surface should not be a problem next spring if it is kept graded. Mr. Marier asked if the grading could be done now and Mr. Volk said, yes. There was a question regarding a particular culvert and Mr. Toddie said he did not have a grading plan and could not comment on this. Mr. Volk said if anything is going to be done in this area, it must be done within the next ten days. Mr. Reinert moved to have the City Administrator contact Mr. Brugge - man and request that he get the grading completed on the street immediately, Mr. Toddie check the culvert and drainage plan or the Council will consider pulling his letter of credit at the next Coun- cil Meeting. Mr. Bohjanen seconded the motion. 1 - 0185 COUNCIL MEETING November 12, 1985 Page Ten Mr. Smith asked if the letter of credit was sufficient. It was explained the Council can only obtain the face value of the letter of credit which is for one and one half times the cost of the pro- ject. Voting on the motion, motion passed unanimously. Mayor Benson said that it should be made clear to Mr. Bruggeman that if the grading is not completed by the next Council Meeting, November 25, 1985 the City will take action and pull his letter of credit. Voting on the motion, motion carried unanimously. CONSIDERATION OF SUBURBAN RATE AUTHORITY REQUEST Mr. Schumacher had received a letter from the Suburban Rate Author- ity dated October 28, 1985 requesting financial support in their efforts in keeping NSP rates as low as circumstances warrant. The cost to Lino Lakes would be 5 per capita or $300.00 plus. Mr. Reinert asked about the track record of this group and Mr. Schumacher said he did not have any information. Mr. Marier said there is a State Utilities Commission who considers such matters and did not see that much could be gained by joining this group. Mr. Marier moved to not join the Suburban Rate Authority effort in establishing proper electric rates. Mr. Kulaszewicz seconded the motion. Motion carried unanimously. NEW BUSINESS A. Joint Fire Commission Meeting, November 14, 1985. Mr. Schumacher explained this is a general information update with the Fire Comm- ission and all three City Councils at 7:00 P.M. in the Senior Center. B. Mayor Benson asked that each Council member give him some sug- gestions as to the direction this City should be pursuing in 1986. He also asked for Mr. Bisel's suggestions. He asked these sugges- tions be submitted to him in writing before the end of this year. Old Business A. Fire Appraisal, Centennial Fire Department. This was included in the Council packet for information purposes. This will be ad- dressed at the November 14, 1985 meeting. B. Anoka County Resource Recovery Program Update - Anoka County held a public hearing on Friday and designated NSP as the vendor for their resource recovery program. This facility should be constructed near Elk River. He has talked to Commissioner Langfeld about this City's stand on this matter and he will need to keep a watch. There is need for a transfer site but the County would not comment on it. Mr. Schumacher will be attending all meetings on this matter. 01o6 COUNCIL MEETING November 12, 1985 Page Eleven C. Local Government Aid Stress Meeting - Mr. Huss attended this meeting and will update the Council at the next budget meeting. State Aids are in some jeopardy in 1987 and possibly in 1986. D. Royal Electric Company Letter - A letter has been received from this company stating they are filing a Claim & Summons against the Lino Lakes BMX, Inc. Mr. Schumacher explained he has received an- other letter from this company stating there has been a settlement. E. Letter to Lino Lakes Police Department - This letter is from a City resident thanking the Police Department for their assistance. F. Mayor Benson has received a letter from School District #12 re- garding fiscal disparities. He gave the letter to Mr. Schumacher and asked that the Council receive copies and update the comment at the next meeting. G. Mayor Benson noted an annual report in the League of Cities publication regarding self insuring. Mr. Schumacher said that Lino Lakes is already involved in this program. He said that Lino Lakes should support the League of Cities in their effort to reduce insur- ance costs for cities. 1 Mr. Bohjanen moved to adjourn at 9:35 P.M. Mr. Reinert seconded the motion. Aye. These minutes were considered and approved at a regular City Council meeting on November25, 1985. rilyn G''. Anderson, Clerk - Treasurer 1