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HomeMy WebLinkAbout12/08/1997 Council Minutes• COUNCIL MINUTES DECEMBER 8, 1997 CITY OF LINO LAKES MINUTES DATE : December 8, 1997 TIME STARTED : 6:34 P.M. TIME ENDED : 9:20 P.M. MEMBERS PRESENT : Bergeson, Landers, Neal and Lyden MEMBERS ABSENT : Kuether Staff members present: City Administrator, Randy Schumacher; City Attorney, Bill Hawkins; Community Development Director, Brian Wessel; City Engineer, David Ahrens; Economic Development Assistant, Mary Alice Divine; Chief of Police, David Pecchia; Environment Coordinator, Marty Asleson SETTING THE AGENDA Mayor Landers requested the addition of Consideration of Selection of a Construction Management Company for the Public Facilities Complex as Agenda Item No. 7.B., Campaign Signs under "Old Business", and Appointment to Friends of the Park as Agenda Item No. 12.B. Council Member Neal requested addition of Campaign Contributions as Agenda Item No. 12.C. Council Member Lyden requested that Agenda Item No. 9, Consideration of Amendments to the City Administrator's Employment Agreement, be deleted. Council Member Lyden moved that Agenda Item No. 9 be deleted. Motion failed for lack of a second. Council Member Lyden then presented four reasons why Agenda Item No. 9 should not be considered at this time. His first reason was that the evaluation was not complete as he had not submitted his portion of the evaluation. Second, this matter had not been presented at the most recent Wednesday Council work session. At this point Council Member Lyden pointed out that closure of the meeting at which Council conducted its review of the City Administrator's employment agreement was not consistent with the requirements of Statute 47.705, Section 1.E. City Attorney explained that the open meeting law provides that the individual being reviewed must be named in the notice of such a meeting. Mayor Landers stated that the official notice referred to the review as being of an employee. Mr. Hawkins indicated that he had not seen the notice and therefore could not opine regarding the correctness of its content. The question was raised as to the validity of the review held at the subject meeting. Mayor Landers pointed out that forms were completed and submitted, but no official Council action was taken. COUNCIL MINUTES DECEMBER 8, 1997 Council Member Lyden expressed concern that an employment contract was discussed, and reiterated his desire that this item be tabled. Council Member Lyden then continued with his reasons why this item should not be considered at this time, reason number three being that the meeting notice did not contain reference to a contract review. Council Member Neal referred to an item for the Fire Department in the amount of $3,140, labeled Healthspan Transportation, explaining that all firemen were required to recertify and that this amount represented the cost of that recertification. The agenda was approved as amended. CONSENT AGENDA Council Member Lyden moved to approve the Consent Agenda. Council Member Neal seconded the motion. Motion carried unanimously. ITEM MINUTES, November 24, 1997 DISBURSEMENTS: ACTION November 30, 1997 ($5,302.74) Approved December 8, 1997 (Checks No. 49429 - 49514, $174,935.67) Approved Centennial Fire District Approved Consideration of Authorizing Signatures for the Centennial School Early Childhood Building Lease, Randy Schumacher OPEN MIKE Approved Robert Bening, 6788 E. Shadow Lake Drive, asked if members of the audience would be afforded an opportunity to speak during the meeting regarding Agenda Item No. 9. Mayor Landers responded that, not being a public hearing, the item would not be open for public input. Mr. Bening then stated that Council should not rush into action regarding this item, and that a brief delay would allow for desired public participation. He asked why there is now an urgent need to execute this contract. 2 • • COUNCIL MINUTES DECEMBER 8, 1997 Kurk Corson, 6662 Ruffed Grouse Road, stated that he would like to present Council with detailed reasons why Agenda Item No. 9 should not be considered at this time, but that he did not wish to do so at this evening's Council meeting rather at a work session. Raymond Stadum, 663 Andall Street, stated that the recent election represented a repudiation of past practices and policies as well as of the architect of those practices and policies. He added his expression of dissatisfaction with the current Council. Steve Worcsher reminded the group that the purpose of the City Council and of the Council meetings is for the benefit of Lino Lakes. Jerry Burt expressed concern that Agenda Item No. 9 should be tabled to allow for review by the City Attorney. Council Member Lyden stated that Council should retain outside legal counsel for the express purpose of reviewing Agenda Item No. 9. Caroline Dahl, 1101 Holly Court, indicated that citizens should question the immediacy with which the City Administrator's employment agreement was handled, and that the opportunity should be given to the residents of the community, as well as to her as Council Member Elect, to participate in this employment review. Kim Sullivan, 7132 Whippoorwill Lane, stated that review of the City Administrator's employment agreement was conducted during an illegal closed meeting. According to Ms. Sullivan, this meeting was illegal because it took place in violation of notification for a public meeting, Council did not identify the individual to be evaluated, specific grounds were not stated to close the meeting, the subject of the meeting was not described, and all meetings shall be open to the public. She further stated that upon beginning review of the employment agreement, the meeting became illegal. Ms. Sullivan asked what attorney had reviewed the employment agreement on behalf of the City. She asked who wrote the agreement, and if the City was responsible for those fees. She also asked if the City Attorney had reviewed State Statute 465.722 relating to a highly compensated employee. Ms. Sullivan stated that the employment agreement represented an enormous buyout amount, and that the revised agreement will hold the citizens of Lino Lakes hostage. She referred to an allowance in the amount of $335 per month as a vehicle allowance; calculation of sick leave (2/3 of annual salary); concluding that termination benefits under the subject agreement could total between $90,000 and $200,000. She added that the indemnification clause was far too liberal in favor of the employee. She called for wise money management, and delay of a revised agreement until the new administration takes office. Don Dunn, 6885 Black Duck Drive, indicated that strong evidence had been presented for delay of consideration of Agenda Item No. 9. He suggested that a significant number of citizens would appreciate the opportunity to participate in the subject employee review. Diane Turner, 7404 Sunset Avenue, asked that Council state individually their reasons for an approving or disapproving vote on Agenda Item No. 9. COUNCIL MINUTES DECEMBER 8, 1997 Eugene Lane, 532 77th Street, echoed the sentiments of those who spoke before him regarding Agenda Item No. 9. He added that he would like to hear reasons why any Council members are in favor of the City Administrator's revised employment agreement, as his attorney would like to hear them. Sharon Lane, 532 77th Street, expressed her disappointment in Council's handling of Agenda Item No. 9. Chris LeMire, 7144 Whippoorwill Lane, expressed agreement with those who had spoken previously regarding Agenda Item No. 9. He added that Council's actions constituted a direct act of defiance and treachery toward the Mayor elect. ENVIRONMENTAL AFFAIRS COMMITTEE UPDATE, MARTY ASLESON AND MAUREEN DAVIDSON Maureen Davidson, on behalf of the Lino Lakes Environmental Affairs Committee, presented an annual report on Committee activities. She provided the following information: I. Accomplishments A. Completed environmental education sessions B. Completed by-laws and submitted to Council for review and approval C. Accepted and reviewed report from University of Minnesota students on Sewer District 5 Project D. Sponsored Earth Day booth that included a drawing for Carroll Henderson's books on backyard landscaping and bird feeding E. Interviewed several professional groups about doing a Natural Resources Inventory F. Sent two delegates to the DNR conference "Keeping Nature in Your Neighborhood" G. Compiled list of available grant money H. Applied for grant from OEM to help pay for Natural Resources Inventory II. Goals for 1998 A. Oversee the hiring of a professional consultant to complete the Lino Lakes Natural Resources Inventory 1. RFP responses are back and being reviewed by EAC members over the Holidays. 2. RFP responses will be discussed at EAC meeting on January 7, 1998 3. Interviews will begin late January and go into February, 1998 4. If OEM grant is received, inventory work will begin around May 1, 1998 4 COUNCIL MINUTES DECEMBER 8, 1997 B. Coordinate MN/DOT Partnership Project along Apollo Meadows I -35W frontage. This project would happen in spring/summer, 1998 C. Make citizens' packets on alternative, environmentally friendly landscaping. These packets will be available at our Earth Day booth, and later at City Hall. D. Review of proposed new developments 1. Review proposed developments with Marty when they are still in the conceptual stage 2. Offer landscaping or land use ideas that may better reflect sustainable development goals. III. Ongoing projects/future ideas A. Enhancement of trails and native plantings and landscaping. This may include an interpretive trail at the Village. Find grant money to finance these projects. B. Coordinate with Trails Committee on trail expansion and greenways C. Community education 1. Educate our community on environmentally friendly landscaping issues 2. Educate our community on how to use the EAC as a resource. 3. Educate our region on Lino Lakes environmental values and practices 4. Get involved with the local schools (SNAP grants, etc.) D. Cooperative neighborhood wildlife planning Ms. Davidson indicated that this group has been in existence only one year, so this is the first annual report. She added that the majority of the Committee's time has been devoted to a Natural Resources Inventory, which is an ongoing process. Ms. Davidson concluded that the Committee hopes to a great deal with regard to community education in the future. Council Member Bergeson asked about the proposal submitted to the Committee regarding an Environmental Inventory and Management Plan. Ms. Davidson indicated that she had not personally had an opportunity to review the submitted materials, but would keep Council informed. Mr. Asleson then offered his Year End Report, as follows: Five RFPs were forwarded to firms on an Environmental Inventory and Management Plan. Four were returned, with the fifth organization declining to submit a proposal. Mr. Asleson indicated that the Sewer District 5 Project information will be a valuable addition to the Inventory. With respect to plantings in new developments, Mr. Asleson explained that 126 bare -root trees and 132 balled and burlapped trees had been placed on boulevards, including replacement trees. 5 COUNCIL MINUTES DECEMBER 8, 1997 The following represents a summary of oak wilt and other disease control plow lines: 1997 - 2,898 feet* 1996 - 2,690 feet 1995 - 6,460 feet 1994 - 4,190 feet 1993 - 12,915 feet 1992 - 12,597 feet Total - 41,750 feet *This figure included 6 new and 5 old infection sites. These figures represent a significant decrease in diseased trees within the City. The Cooperative Laboratory Plow and Cooperative suppression dollars from the U.S. Forest. Service through the DNR have provided much needed assistance in this effort. Mr. Asleson further explained that a number of high risk trees were marked for removal. There is growing concern in the evergreen residential areas with respect to diplodia blight, and an effort is being made to educate residents regarding treatment of this problem. An unfortunate finding is the status of the Gypsy Moth. Ten moths were caught in traps over this past year, and it is estimated that complete infestation is possible within eight to ten years. Models created for study of this problem project some moderate to heavy damage potential for the Lino Lakes area. Mr. Asleson assured the group that the web worms are more of an eyesore than a more significant threat to the trees they inhabit. Two -lined chestnut borers, which have been investing drought and development stricken trees, have been confused with oak wilt. Inventory and classification of trees 12 inches in diameter and larger has been conducted within the Town Center site. The engineering department has installed this information on CAD, and it will also be installed in GIS for ease of access in continuing preservation efforts. Additionally, 20 large red pine trees were moved from the construction area at Town Center and used as landscape elements on that site. A designated tree hold area has been designated for trees that can be saved and replanted. Mr. Asleson concluded by stating that the Environmental Committee has enforced the tree preservation ordinance in various development areas. Additionally, Lino Lakes was awarded Tree City USA status in 1997 and the Tree City Growth Award. He stated that 12,427 feet of trails were installed this year, as well as trail additions at the Town Center site. A grant in the amount of approximately $1.7 million will be a possibility for Lino Lakes to make connection into the Rice Creek Regional Park via Aqua Lane. 6 • • COUNCIL MINUTES DECEMBER 8, 1997 Council Member Neal requested explanation of two terms used in Mr. Asleson's report. The first was RFP, which Mr. Asleson explained stands for "request for proposal". The other term was OEM, which Mr. Asleson explained stands for "Office of Environmental Management". Council Member Bergeson asked about the succession scheme and length of term for members of the Committee. Ms. Davidson explained that the Committee's by-laws provide for a two-year appointment, staggered so that three of the seven members would step down in one year and the other four the next. However, during this first year of its existence, the Committee will stand with current membership for a full two-year term. It has not yet been determined which seats will be subject to replacement first. Council Member Neal asked if others on the Committee would have the opportunity to attend the DNR conference referred to in Ms. Davidson's presentation. Ms. Davidson explained that those who attended did so because they had the time available to them, and anyone who wishes to may attend. Council Member Neal requested notification of such events in the future. Council Member Lyden suggested that the interstate corridors be turned into greenways. Ms. Davidson indicated that through the Partnership Program the DNR provides trees and recommendations for planting for such areas, and the City or neighborhood then provides labor and subsequent care of the trees. She suggested that this program would be a possibility, as the Committee is already using it in connection with the Apollo Drive project. Mayor Landers asked about those trees that died on the boulevards during this past year. Mr. Asleson indicated that legal action through conciliatory court would be required in order to obtain compensation for the approximately $5,000 worth of trees that have been lost. He added that only a few trees remain with the majority having been replaced. Council Member Neal asked about ailing trees in Clearwater Creek. Mr. Asleson indicated that the developer would be responsible for replacement of any such trees. CONSIDERATION OF EMERGENCY ORDINANCE NO. 36 - 97, REPEALING ORDINANCE NO. 16 - 97, RETURNING THE RESIDENTIAL SOLID WASTE HAULER'S LICENSE EXPIRATION DATE TO JUNE 1,1997, MARTY ASLESON Mr. Asleson explained that Emergency Ordinance No. 16 - 97 amended the City Code by extending to January 1, 1998 existing residential hauler licenses which expired on June 1, 1997. This Ordinance was passed in order to facilitate licensing under the organized solid waste plan. The organized solid waste issue was defeated in the November election; thus, it is necessary to revert to the original ordinance of licensing on June 1. The proposed new ordinance addresses and reflects this change. Council Member Neal asked about the term of a license, which Mr. Asleson explained is one year, with renewal in June. In light of the terms of the existing ordinance, a license will be issued for January, 1998 to June, 1998, and the one-year term will terminate in June of 1999. COUNCIL MINUTES DECEMBER 8, 1997 Council Member Neal moved to approve Ordinance No. 36 - 97, as presented. Council Member Lyden seconded the motion. Motion carried unanimously. Ordinance No. 36 - 97 can be found at the end of these minutes. CONTINUATION OF PERMANENT FULL-TIME EMPLOYMENT OF POLICE OFFICER KEVIN JOHNSON TO REPLACE POLICE OFFICER WHO RETIRED, POLICE CHIEF PECCHIA Chief Pecchia explained that with the retirement of Officer Sal Costa on September 30, 1997, a vacancy was created within the Police Department. Testing was conducted on September 13, 1997. Twenty candidates were interviewed and background investigations were conducted on the top seven. Chief Pecchia and the City Administrator then interviewed the top five candidates. At the conclusion of this process the top two candidates advanced to Phase II of the hiring process --the psychological and medical examinations. Following completion of the hiring process Chief Pecchia recommended that Kevin Johnson be hired, effective immediately. Chief Pecchia added that Officer Johnson currently holds two part-time jobs: He performs street maintenance for Richfield Public Works, and holds the position of probation officer at Anoka County Juvenile Center. Officer Johnson attended Moorhead State University from September, 1993 to August 1997, where he received a Bachelor of Arts Degree in criminal justice. In June of 1997, he attended his Skills at Alexandria Technical College. Council Member Neal asked about the status of the top two candidates. Chief Pecchia explained that Mr. Johnson was one of the top two with the other withdrawing from consideration. Council Member Bergeson asked about the current probation period policy. Chief Pecchia explained that the probation period is one year with a 13 -week FTO program. He added that the probation period can be extended for an additional three months, if necessary. Mr. Schumacher expressed his opinion that Mr. Johnson has excellent characteristics, and that he will be a significant asset to the Lino Lakes Police Department. Council Member Neal also asked if Mr. Johnson will continue his employment with Richfield Public Works and the Anoka County Juvenile Center after he joins the Lino Lakes Police Department. Chief Pecchia indicated that he would not. Mayor Landers asked about the current police force. Chief Pecchia stated that the Department has an authorized strength of 19 full-time officers and 1 part-time officer. With the addition of Mr. Johnson, the Department will have 18 full-time officers. Council Member Neal moved to hire Officer Kevin Johnson, effective immediately. Council Member Lyden seconded the motion. Motion carried unanimously. 8 COUNCIL MINUTES DECEMBER 8, 1997 • CONSIDERATION OF RESOLUTION NO. 97 -170, REVISION TO STATE AID STREET SYSTEM, DAVID AHRENS Mr. Ahrens explained that cities qualifying for participation in the Municipal State Aid System (MSAS) are allowed to designate roadways to the system based on the amount of improved roadways within the City. Each year cities are allowed to revise their MSAS by adding or revoking MSAS mileage. Council approval of the additions to the MSAS is required prior to their recognition by State Aid. • • He then provided the proposed revisions to the Lino Lakes Municipal State Aid System, as follows: 1. Add non -existing "Street C", an extension of MSAS Route 114, from Cedar Street to County Road 84. This addition is necessary so that MSAS Route 114 terminates at a County Road or other State Aid route. Currently, MSAS Route 114, or Clearwater Creek Drive, terminates at its north end at Cedar Street, a local route, which is not acceptable by State Aid rules. The proposed addition of "Street C" to County Road 84 meets State Aid rules for designation of routes. The "Street C" route goes through the Northern Wholesale property, and Staff realizes this designation is an "on paper" designation only. 2. Add existing Elm Street from Second Avenue to 0.06 miles west of Lake Drive. Previously, per Staff recommendation, Council added Elm Street from Sunset Road to 0.06 miles west of Lake Drive. This designation is not acceptable to State Aid since the westerly end of Elm Street is within the City of Blaine, and Blaine would have to designate one-half of the mileage for the portion of the roadway that is on the border of the two cities. Since Staff has not been able to resolve this border street issue with Blaine or with State Aid, Staff is asking Council to approve addition of that portion of Elm Street which does meet State Aid rules at this time. Staff is investigating options for designation of the remaining portion of the roadway as MSAS. Council Member Neal requested clarification of the Elm Street proposal. Mr. Ahrens explained that the City of Blaine is not willing to designate their portion of this roadway as MSAS since there would be no benefit to Blaine. He added that he will continue to pursue this issue in the future. Council Member Neal asked if the "C Street" proposal would result in elimination of County Road 84. Mr. Ahrens explained that County Road 84 is to become the City's through a joint powers agreement with the County, and that the subject portion of existing Otter Lake Road would then become a City road. Council Member Bergeson requested clarification of the status of the Clearwater Creek roadway. Mr. Ahrens explained that past action resulted in a segment of the roadway being inconsistent with MSAS rules. Therefore, this project is recommended to bring the roadway back into compliance with the subject standards. He added that the designation through developed property is a common, acceptable practice in obtaining State Aid. COUNCIL MINUTES DECEMBER 8, 1997 Mayor Landers asked about the Elm Street realignment with respect to the Centennial Middle ool, stating that he was under the impression that the entire street had been designated MSAS. Mr. Ahrens explained that Council's resolution with respect to Elm Street designation was forwarded to State Aid for review at which point it was discovered that a portion of that street lies within the City of Blaine. The State Aid office determined that designation under those conditions was not acceptable, and offered Lino Lakes the options outlined above. Council Member Lyden informed the Chair that he wished a note passed between two Council members be read aloud to the entire group. Mayor Landers indicated that he would not make such a direction. Mr. Hawkins confirmed that such communication can remain private. Council Member Bergeson moved to adopt Resolution No. 97 - 170, as presented. Council Member Lyden seconded the motion. Motion carried unanimously. Mayor Landers declared a five-minute recess at 7:52 p.m. at the request of Council Member Lyden. The meeting was reconvened at 7:57 p.m. COMMUNITY DEVELOPMENT DEPARTMENT REPORT Consideration of Resolution No. 97 - 169 Providing for the Issuance and Sale of $4,000,000 in Industrial Revenue Bonds, Series 1998 - Ms. Divine stated that the City of Lino Lakes has received a proposal from Molin Concrete requesting that the City assist in financing a project through the issuance of revenue bonds in the amount of $4 million. The project to be financed is the addition of two buildings, plus the purchase and installation of additional equipment. Ms. Divine added that the Minnesota Municipal Industrial Development Act requires the City Council to indicate its preliminary intent to undertake the project and to issue the revenue bonds through an inducement resolution. If Molin Concrete's application is approved by the State in January, the City must hold a public hearing and finalize the issuance of the bonds. She explained that industrial revenue bonds are different from general obligation bonds in that the City is under no obligation with industrial revenue bonds. In addition, all costs for issuance of industrial revenue bonds will be paid by Molin Concrete. Mr. Wessel commented that representatives of Molin Concrete were available in the audience for any questions. He added that it is desirable to offer this type of incentive to businesses such as Molin Concrete, which has been able to qualify financially for this bonding obligation. Council Member Lyden moved to adopt Resolution No. 97 - 169, as presented. Council Member Neal seconded the motion. Motion carried unanimously. Resolution No. 97 - 169 can be found at the end of these minutes. 10 • COUNCIL MINUTES DECEMBER 8, 1997 Consideration of Selection of a Construction Management Company for the Public Facilities Complex - Ms. Divine stated that engagement of a construction management company is proposed to oversee the construction of the public facilities complex in order to ensure timely completion of this project within budget perameters. After sending requests for proposals to seven construction management firms, Ms. Divine explained that the public facilities committee interviewed three finalists. The firm of Adolfson & Peterson was selected as the first choice, based on capability and cost. By way of background, Ms. Divine explained that Adolfson & Peterson has considerable experience with a variety of construction management projects for the public sector, and has proposed a team to work with the City on a daily basis. The amount of the Adolfson proposal was lowest at $310,847. Mr. Wessel expressed his appreciation to Ms. Divine for her continuation of this proposal, and stated that approval of this request for authorization to engage a construction management team is an essential step toward timely completion of the public facilities complex. Council Member Bergeson requested explanation of the benefit of construction management over inclusion of this service within the overall project bid. Mr. Wessel explained the role of construction management is to work with the architects from the beginning of construction, ensuring adequate overseeing of the project and avoiding unforeseen expense. He stated that in his experience the additional cost of construction management is worthwhile, adding that all individual contracts will still be let for bid allowing for competitive cost management in all other areas of the project. Council Member Lyden expressed strong exception to payment of $310,847 for construction management service. Mr. Wessel indicated that in his experience a project of this nature warrants construction management, and that the cost would ultimately be the same whether paid to construction management or incorporated into a bid contract. He offered to explain in detail the benefits of such a service. Mayor Landers asked about the other two bids. Ms. Divine explained that the other bids were considerably higher, one bid in the amount of $469,692, and the other $527,140. Ms. Divine added that the high quality of the company chosen is essential to the timely acquisition of service and materials for Spring construction. Council Member Lyden moved to return this matter to Staff for further consideration. Council Member Neal seconded the motion. Council Member Bergeson expressed his objection to this motion, explaining that in his personal experience with approximately $35 million worth of construction use of construction management has proven to be appropriate for projects such as the subject facility. • Mr. Schumacher pointed out that an agreement has already been made with Centennial School District with respect to the Early Childhood Center, and that construction management has 11 COUNCIL MINUTES DECEMBER 8, 1997 offered a guarantee that the School District's November deadline can be met. Without this guarantee, a labor issue could cause the City to have to forfeit on its contract with Centennial School District. Council Member Neal asked if there was a possibility that the construction management fee could be reduced and returned for Council action without compromising the intended completion deadline. Council Member Bergeson requested specific intent of returning this matter to Staff for additional consideration. Council Member Lyden suggested that there might be a healthy discussion regarding the possibility of achieving the same end through a bid contract. Council Member Neal requested explanation of line items appearing on the proposed construction management schedule, such as special inspections, printing of documents, and winter heat and cover. Ms. Divine explained that the winter heat and cover refers to special enclosure and service should the buildings not be sufficiently enclosed by onset of winter. She suggested that timely action with regard to construction management would likely eliminate this possibility. Council Member Bergeson reiterated the need to comply with the City's agreement with Centennial School District. This measure to ensure timely completion of the project could preempt serious ramifications, such as litigation should the City not meet this obligation. Council Member Neal requested clarification that the present action is simply to approve negotiations with the proposed construction management firm. Ms. Divine indicated that this assumption is correct, and that a detailed contract proposal will come before Council for consideration at the earliest possible time. Mayor Landers requested clarification of the original motion by Council Member Lyden. Council Member Lyden stated that his motion is to table this matter for further Council consideration. Mr. Wessel again recommended pursuing the use of construction management. Council Member Lyden responded that the proposed fee is unacceptable. Mr. Wessel indicated that a request could be made for reduction is fee, but that a comparable amount would likely be incorporated into any bid arrangement. Motion defeated due to a tie vote, with Council Member Bergeson and Mayor Landers voting no. Council Member Bergeson moved that the City Staff and City Attorney be authorized to negotiate a contract with Adolfson & Peterson for construction management according to the terms presented. Mayor Landers seconded the motion. 12 • COUNCIL MINUTES DECEMBER 8, 1997 Council Member Neal clarified that this matter will come back before Council for final consideration. Council Member Bergeson agreed, but pointed out that approval of his motion would indicate intent to go forward with such negotiation and ultimate execution of a contract. Mr. Wessel indicated that the final contract would involve approximately two weeks for completion. Motion defeated due to a tie vote, with Council Members Neal and Lyden voting no. Consideration of selection of a construction management firm for the public facilities complex was tabled by default. CONSIDERATION OF SETTING A PUBLIC HEARING FOR DESIGNATING COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDING FOR 1998-1999, RANDY SCHUMACHER Mr. Schumacher explained that each year the City is allocated CDBG dollars to fund projects that primarily benefit low income persons/households or cleanup conditions of slum and blight. Anoka County has estimated the 1998-99 grant to be approximately 7% less than the 1997-98 grant allocation. The 1997-98 grant was $36,770 less $1,000 for administration, or $35,770. The estimated 1998-99 grant would be $34,196 less $1,000 for administration, or $33,196. Mr. Schumacher stated that the public hearing date requested is January 12, 1998, at 6:30 p.m. Based on that date, Mr. Schumacher explained that January 26, 1998 has been tentatively set as the date Council will determine how CDBG funds will be allocated. All requests must be submitted to the County by February 13, 1998. Council Member Bergeson moved to set the public hearing for designating Community Development Block Grant (CDBG) funding for January 12, 1998, at 6:30 p.m.. Council Member Neal seconded the motion. Motion carried unanimously. CONSIDERATION OF AMENDMENTS TO THE CITY ADMINISTRATOR'S EMPLOYMENT AGREEMENT, MAYOR LANDERS In light of the considerable discussion having taken place earlier in this meeting, Mayor Landers immediately called for a motion with respect to this item. Council Member Lyden requested consideration of tabling this matter based upon any one of the four reasons he offered previously. Council Member Lyden moved to table consideration of the amended City Administrator's employment agreement. Motion failed due to lack of a second. Council Member Bergeson moved to approve the City Administrator's employment agreement, as amended. Council Member Neal seconded the motion. 13 COUNCIL MINUTES DECEMBER 8, 1997 Council Member Lyden requested that Mr. Hawkins review in detail the differences between the existing and proposed amended City Administrator's employment agreements. Mr. Hawkins stated that he has no personal knowledge of the contents of the current agreement and, therefore, cannot comment on the differences. Council Member Lyden suggested that Mr. Schumacher had removed information from the last City audit relating to his (Schumacher's) sick time, and, therefore, further investigation of the terms of the amended employment agreement is required. Council Member Bergeson commented that the portion of the amended employment agreement related to sick leave provides for 50% of the accrued sick leave to be paid at the time of severance, and states a current accrued balance. He further commented that the Council members who participated in the review of the proposed employment agreement did so in good faith. Council Member Bergeson then indicated that the matter before Council at this time is consideration of the amended employment agreement, and expressed his favor with the contract based upon the following: The amended employment agreement provides for a smooth transition, should the present City Administrator's employment be terminated; provision of a smooth and orderly transition being the obligation of the City Council. Additionally, the City Council has an obligation to take all prudent steps to prevent litigation which might arise out of such employment termination; the proposed amended employment agreement seeks to accomplish this end. Council Member Bergeson expressed exception to the statement regarding a possible cost to the City of $200,000 to terminate the City Administrator's employment. He then reviewed two specific items within the contract which he indicated should be considered, as follows: Section 15, Benefits, states in part that "...the City would continue to provide and pay for benefits set forth in Paragraphs 7 and 8." These benefits include health, life, and disability insurance. Council Member Bergeson stated that the suggested term for provision of these benefits be changed to "...one year, or until comparable benefits are provided by a subsequent employer." The second item Council Member Bergeson addressed was a limitation on additional compensation beyond that provided within the employment agreement. He stated that he was informed by Mr. Hawkins that a specific provision to that effect is not required, as execution of the amended employment agreement as written binds the employee to acceptance of specific compensation. Mayor Landers expressed agreement with statements made by Council Member Bergeson, adding that the employment agreement coincides with agreements for similar employees of a number of other communities like Lino Lakes specifically with reference to automobile allowance. Council Member Neal pointed out that Mr. Schumacher has not been provided a vehicle nor compensated for use of his personal vehicle over his period of employment by the City of Lino Lakes, and asked if retroactive compensation would be necessary. 14 • • COUNCIL MINUTES DECEMBER 8, 1997 Council Member Lyden requested that Council Member Bergeson provide a cost comparison between the current City Administrator's employment agreement and the amended employment agreement. Council Member Bergeson stated that he did not know the cost of the current agreement, but that in his experience other managerial employees had been compensated one month's salary for every month of service and continued benefits. Council Member Lyden requested that Council Member Bergeson provide an explanation of the cost to the City of the subject amended employment agreement. Council Member Bergeson stated that the cost would include approximately $37,000 in salary, approximately $20,000 in sick leave, and approximately $6,000 in benefits, for a total of $63,000. Council Member Lyden pointed out that one difference between the current employment agreement and the amended one is payment of six months salary upon termination as opposed to three months salary. Council Member Lyden pointed out that a new administration is possible. He added that the Council is responsible to the citizens of Lino Lakes to act prudently on their behalf. Council Member Bergeson requested that Council Member Lyden be given the opportunity to complete his comments regarding the proposed employment agreement. Council Member Lyden asked for the motivation behind the amended employment agreement. Mayor Landers indicated that he had discussed the City Administrator's employment with him on occasion, as permitted and directed by the City Charter. Council Member Lyden suggested that the amended agreement was accomplished because of the November election results, and expressed exception to not being included in the process of drafting that agreement. Council Member Bergeson reminded the group that he feels the content of the amended employment agreement is appropriate. Council Member Bergeson proposed that, prior to voting on the motion presently awaiting action, the motion be amended to include the following addition to the employment agreement at Section 15: ...The City will pay for benefits set forth in Paragaphs 7 and 8 above for a period of one year, or until comparable benefits are provided by a subsequent employer, whichever comes first.... Council Member Lyden suggested that the indemnification clause seemed loosely worded, and asked Mr. Hawkins to respond to this concern as well as whether or not benefits would be paid in the event the employee left in less than "good standing". Council Member Bergeson requested that the proposed amendment to the original motion to approve the amended employment agreement be acted upon prior to moving on to additional discussion. 15 COUNCIL MINUTES DECEMBER 8, 1997 Mayor Landers called for a vote. The amendment passed, with Council Member Lyden voting no. Council Member Lyden reiterated his concern regarding the proposed indemnification clause. Mr. Hawkins expressed his reluctance to express a legal opinion with regard to this employment agreement in his continuing effort to avoid a potential conflict of interest. Council Member Bergeson referred to the indemnification clause of the proposed amended employment agreement --Section 17 --stating his belief that the City is obligated to indemnify its employees by law. Motion to approve the amended City Administrator's employment agreement, as amended, carried, with Council Member Lyden voting no. CONSIDERATION OF AMENDING THE EMPLOYEE COMPUTER PURCHASE POLICY, RANDY SCHUMACHER Mr. Schumacher explained that the employee personal computer purchase plan has been in existence for a number of years and is working well for the City. In order to provide more flexibility to employees prior to leaving employment, Mr. Schumacher recommended the following amendment to the current policy: 2. A payment schedule shall be arranged with the Finance Department, not to exceed the original payment terms (36 months). If arrears exceed 60 days, payment in full shall be required. Council Member Lyden moved to approve the amendment to the Employee Computer Purchase Policy, as presented. Council Member Neal seconded the motion. Motion carried unanimously. OLD BUSINESS Campaign Signs - Mayor Landers requested approval by Council to authorize the City Attorney to prepare a draft ordinance regarding campaign signs based upon information previously provided by Mr. DeMotts. Council Member Bergeson suggested that Council further discuss this matter at a future work session and, upon coming to general agreement as to content, request a draft ordinance for formal consideration. Council Member Neal moved to table this item until the next Council work session. Council Member Bergeson seconded the motion. Motion carried unanimously. NEW BUSINESS 16 • • • COUNCIL MINUTES DECEMBER 8, 1997 Consideration of Minutes, December 16, 1996 (Council Member Kuether was absent) Council Member Neal moved to approve the December 16, 1996 Council Minutes, as presented. Council Member Lyden seconded the motion. Motion carried unanimously. Appointment to Friends of the Park - Mayor Landers stated that he was in receipt of correspondence from the current president of Friends of the Park requesting appointment of Sharon Schmidt to that body. Pursuant to the by-laws of Friends of the Park, Mayor Landers appointed Sharon Schmidt to Friends of the Park to replace Martha Walmsley. Campaign Contributions - Council Member Neal requested that all election reports be presented to the County Attorney for investigation. Council Member Bergeson suggested that the City Clerk be asked to review all reports and, following clarification regarding any questions, unresolved issues be presented for investigation. Council Member Lyden moved that this matter be tabled until the next Council work session. Motion failed due to lack of a second. Council Member Neal moved that Council direct the City Clerk to review the election reports and present any discrepancies to the County Attorney for investigation. Council Member Bergeson seconded the motion. Council Member Bergeson suggested that any improprieties should be addressed; however, at the onset, possible errors should be pointed out to the author of the original report in an effort to obtain a satisfactory explanation prior to a formal investigation by an outside party. Motion carried, with Council Member Lyden voting no. ADJOURN Council Member Neal moved to adjourn at 9:20 p.m. Council Member Bergeson seconded the motion. Motion carried unanimously. These minutes were considered and approved at the regular Council Meeting, December 15, 1997. Ma r`ilyn Anderson, Clerk -Treasurer 6octi2e -14 Transcribed by: Judy Pope TimeSaver Off -Site Secretarial, Inc. 17 o n L. Landers, Mayor Council Member adoption: Neal introduced the following resolution and moved its CITY OF LINO LAKES Ordinance No. 36 - 97 AN EMERGENCY ORDINANCE REPEALING ORDINANCE NO. 16 - 97, AND RESTORING THE RESIDENTIAL SOLID WASTE HAULER'S LICENSE RENEWAL DATE TO JUNE 1 OF EACH YEAR The City Council of the City of Lino Lakes ordains that the Lino Lakes City Code is amended as follows: SECTION 1. DECLARATION OF NEED FOR EMERGENCY ORDINANCE By Ordinance 08 - 97, the City Council adopted a residential organized solid waste collection system. By Ordinance No. 16 - 97, the City Council extended the solid waste hauler's license period from June 1, 1997 to January 1, 1998. Ordinance No. 08 - 97 was submitted for voter approval at the November 4, 1997 municipal election and was defeated. The City Council now finds it necessary to restore the previous license period for the residential solid waste hauler's to avoid a gap of six (6) month in the license period which would be caused if Ordinance No. 16 - 97 is allow to remain in force. SECTION 2. RESIDENTIAL SOLID WASTE COLLECTION LICENSE Section 507.04, Subd. 1A, Subpart (G) is hereby deleted and replaced with the following: (G). Licenses for residential solid waste hauler's shall be valid for one (1) year and shall expire on June 1st of each year unless revoked sooner. This section shall be retroactive to June 1, 1997 and all residential solid waste haulers are required to renew their license June 1, 1997. SECTION 3. EFFECTIVE DATE. The effective date of this ordinance shall be December 8, 1997. PASSED by the Lino Lakes City Council this 8th , y of December, 1997. J9{in L. Landers, Mayor ATTEST: a lY n G. Anderson, Clerk -Treasurer • • • • RESOLUTION NO. 36 - 97 Page -2 The motion for adoption of the foregoing ordinance was duly seconded by Council Member Lyden and upon vote being taken thereon, the following voted in favor thereof: Bergeson, Lyden, Neal, Landers. The following voted against same: None, Council Member Kuether was absent. Whereupon said ordinance was declared duly passed and adopted. • • Council Member Lyden introduced the follow resolution and moved its adoption: CITY OF LINO LAKES RESOLUTION NO. 97 - 169 RESOLUTION RECITING A PROPOSAL FOR AN INDUSTRIAL DEVELOPMENT PROJECT GIVING PRELIMINARY APPROVAL TO THE PROJECT PURSUANT TO THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT SUBJECT TO HOLDING A PUBLIC HEARING AND AUTHORIZING THE SUBMISSION OF AN APPLICATION FOR ALLOCATION AND PREPARATION OF NECESSARY DOCUMENTS (MOLIN CONCRETE PRODUCTS COMPANY PROJECT) WHEREAS, (a) The purpose of Minnesota Statutes, Sections 469.152 to 469.165 known as the Minnesota Municipal Industrial Development Act (the "Act") as found and determined by the legislature is to promote the welfare of the state by the active attraction and encouragement and development of economically sound industry and commerce to prevent so far as possible the emergence of blighted and marginal lands and areas of chronic unemployment; (b) Factors necessitating the active promotion and development of economically sound industry and commerce are the increasing concentration of population in the metropolitan areas and the rapidly rising increase in the amount and cost of governmental services required to meet the needs of the increased population and the need for development of land use which will provide an adequate tax base to finance these increased costs and access to employment opportunities for such population; (c) The City Council of the City of Lino Lakes (the "City") has received from Molin Concrete Products Company, a Minnesota corporation (the "Company") a proposal that the City undertake to finance a Project hereinafter described, through the issuance of revenue bonds (hereinafter the "Bonds") pursuant to the Act; (d) The City desires to facilitate the selective development of the community and surrounding area, retain and improve the tax base in the City, and help to provide the range of services and employment opportunities required by the population; and the Project will assist the City in achieving those objectives. The Project will help to increase assessed valuation in the City and help maintain a positive relationship between assessed valuation and debt and enhance the image and reputation of the community; (e) The Project proposed to be financed by the Bonds is the construction of an approximately 16,000 sq. ft. building and an approximately 1,600 sq. ft. building at the Company's existing precast and prestressed concrete products manufacturing facility located at 415 Lilac Street in the City, and the acquisition and installation of equipment therein. The Project 809021.2 • • is expected to create 15 new jobs at an annual payroll increase of approximately $600,000; (f) The City has been advised by representatives of Company that conventional, commercial financing to pay the capital cost of the Project is available only on a limited basis and at such high costs of borrowing that the economic feasibility of operating the Project would be significantly reduced; (g) No public official of the City has either a direct or indirect financial interest in the Project nor will any public official either directly or indirectly benefit financially from the Project. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lino Lakes, Minnesota, as follows: 1. The Council hereby gives preliminary approval to the proposal of Company that the City undertake the Project pursuant to the Act, subject to holding a public hearing with respect to the Project, and pursuant to a revenue agreement between the City and Company upon such terms and conditions with provisions for revision from time to time as necessary, so as to produce income and revenues sufficient to pay, when due, the principal of and interest on the Bonds in the total principal amount of approximately $4,000,000 to be issued pursuant to the Act to finance the acquisition, construction, and installation of the Project; and such revenue agreement may also provide for the interest of Company therein to be pledged to the purchaser of the Bonds; and the City hereby undertakes preliminarily to issue its Bonds in accordance with such terms and conditions. 2. On the basis of information available to this Council it appears, and the Council hereby finds, that the Project constitutes properties, real and personal, used or useful in connection with one or more revenue producing enterprises engaged in manufacturing within the meaning of Subdivision 2(a) (1) of Section 469.153 of the Act; that the Project furthers the purposes stated in Section 469.152; that the availability of the financing under the Act and willingness of the City to furnish such financing will be a substantial inducement to Company to undertake the Project, and that the effect of the Project, if undertaken, will be to encourage the development of economically sound industry and commerce, to assist in the prevention of the emergence of blighted and marginal land, to help prevent chronic unemployment, to help the surrounding area retain and improve the tax base and to provide the range of service and employment opportunities required by the population, to help prevent the movement of talented and educated persons out of the state and to areas within the State where their services may not be as effectively used, to promote more intensive development and use of land within the City and surrounding communities and eventually to increase the tax base of the community. 809021.2 2 3. The Project is hereby given preliminary approval by the City subject to holding a public hearing with respect to the Project and consideration of information, if any, presented and further subject to final approval by this Council, Company, and the purchaser of the Bonds as to the ultimate details of the financing of the Project. 4. The Mayor and staff of the City are hereby authorized and directed to submit a request for allocation of federal bonding authority for the Project. 5. Company has agreed and it is hereby determined that any and all costs incurred by the City in connection with the financing of the Project, including legal fees, whether or not the Project is carried to completion and whether or not volume cap is obtained will be paid by Company. 6. Briggs and Morgan, Professional Association, acting as bond counsel, is authorized to assist in the preparation and review of necessary documents relating to the Project, to consult with the City Attorney, Company and the purchaser of the Bonds as to the maturities, interest rates and other terms and provisions of the Bonds and as to the covenants and other provisions of the necessary documents and to submit such documents to the Council for final approval. 7. Nothing in this resolution or in the documents prepared pursuant hereto shall authorize the expenditure of any municipal funds on the Project other than the revenues derived from the Project or otherwise granted to the City for this purpose. The Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property or funds of the City except the revenue and proceeds pledged to the payment thereof, nor shall the City be subject to any liability thereon. The holder of the Bonds shall never have the right to compel any exercise of the taxing power of the City to pay the outstanding principal on the Bonds or the interest thereon, or to enforce payment thereof against any property of the City. The Bonds shall recite in substance that the Bonds including interest thereon, are payable solely from the revenue and proceeds pledged to the payment thereof. The Bonds shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation. 8. In anticipation of the issuance of the Bonds to finance all or a portion of the Project, and in order that completion of the Project will not be unduly delayed when approved, Company is hereby authorized to make such expenditures and advances toward payment of that portion of the costs of the Project as Company con- siders necessary, including the use of interim, short-term financing, subject to reimbursement from the proceeds of the Bonds if and when delivered but otherwise without liability on the part of the City. 809021.2 3 • • • • • 9. City staff is hereby authorized and directed to work with bond counsel to prepare and publish a Notice of Public Hearing with respect to the Project. Adopted by the City Council of the City of Lino Lakes, Minnesota, this 8th day of December, 1997. Attest: City Clerk The motion for adoption of the foregoing resolution was duly seconded by Council Member Neal and upon vote being taken thereon, the following voted in favor thereof: Bergeson, Lyden, Neal, Landers. The following voted against same: None, Council Member Kuether was absent. Whereupon said resolution was duly passed and adopted. 809021.2 4 Council Member Bergeson its adoption: introduced the following resolution and moved CITY OF LINO LAKES RESOLUTION NO. 97 - 170 RESOLUTION APPROVING REVISIONS TO LINO LAKES MUNICIPAL STATE AID SYSTEM WHEREAS, Department of Transportation State Aid for Local Transportation Division State Aid Operation Rules Chapter 8820 allows cities to designate routes as Municipal State Aid, and WHEREAS, the segments recommended to e added to the Lino Lakes Municipal State Aid System are projected to carry a relatively heavier traffic volume or connect points of major traffic interests within Lino Lakes. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LINO LAKES, MINNESOTA: 1. That non -existing `Street C' from Cedar Street to County Road 84 be designated as Municipal State Aid. The length of this segment is 0.19 miles. 2. That existing Elm Street from Second Avenue to 0.06 miles west of Lake Drive 84 be designated as Municipal State Aid. The length of this segment is 0.57 miles. Adopted by the Lino Lakes City Council this 8th day of December, 1997. oVn L. Landers, Mayor MarilynG. An Y derson Clerk -Treasurer The motion for adoption of the foregoing resolution was duly seconded by Council Member Lyden and upon vote being taken thereon, the following voted in favorthereof: Bergeson, Lyden, Neal, Landers. The following voted against same: None, Council Member Kuether was absent. Whereupon said resolution was duly passed and adopted. • • •