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HomeMy WebLinkAbout06-19-2012 CCM LAKE ELMO CITY COUNCIL MINUTES JUNE 19, 2012 Page 1 of 7 CITY OF LAKE ELMO CITY COUNCIL MINUTES JUNE 19, 2012 Mayor Johnston called the meeting to order at 7:00 p.m. PRESENT: Mayor Johnston, Council Members Emmons, Smith, Pearson, and Park. Also Present: City Administrator Zuleger, City Attorney Snyder, City Engineer Griffin, Planning Director Klatt, City Clerk Thone, and Finance Director Bendel. APPROVAL OF AGENDA MOTION: Council Member Pearson moved to approve the June 19, 2012 City Council Agenda as presented. Council Member Park seconded the motion. Motion passed 5-0. ACCEPTED MINUTES 1. The June 5, 2012 City Council minutes were approved as amended by consensus of the City Council. PUBLIC COMMENTS/INQUIRIES PRESENTATIONS Eric Eitzman, Stillwater High School Senior presented his Eagle Scout Project to the Council. He met with the Public Works Department and City Engineer, regarding the building of a bridge from the Lake Elementary School field to the City Hall parking lot. MOTION: Council Member Emmons moved to accept the project. Council Member Smith seconded the motion. Motion passed 5-0. CONSENT AGENDA 2. May 2012 Financial Reporting; Year to date Building Report 3. Approve Payment of Disbursements and Payroll in the Amount of $224,228.66 4. Approve Resolution 2012-30 Appointing 2012 Election Judges 5. Approve Resolution 2012-33 Removing Assessments from 2012 Washington County File MOTION: Council Member Pearson moved to approve the Consent Agenda as presented. Council Member Smith seconded the motion. Motion passed 5-0. REGULAR AGENDA ITEM 6: RESOLUTION 2012-31 STREET NAME CHANGE-JULEP AVENUE NORTH (ENTRANCE INTO TAPESTRY AT CHARLOTTE’S GROVE) LAKE ELMO CITY COUNCIL MINUTES JUNE 19, 2012 Page 2 of 7 Planning Director Klatt presented a diagram of the proposed street name change request and provided a brief history and justification for the proposed change. He stated only three properties would be affected by the change from Julep Avenue North to 45th Street North. Jim Blackford, 9765 45th Street North approached the council and stated he supported the street name change. The three property owners will cover the cost of moving their mailboxes and he will install a 24-inch wide cement flat concrete surface and curb to allow snowplowing. MOTION: Council Member Smith moved to approve Resolution 2012-031 Changing the Name of a Portion of Julep Avenue North Between the 45th Street North Right-of-Way and Tapestry Road. Council Member Park seconded the motion. Motion passed 5-0. ITEM 7: MINOR SUBDIVISION – 11240 50TH STREET NORTH Planning Director Klatt presented the minor subdivision request for 11240 50th Street North, which does meet City Code requirements allowing lot splits less than 10 acres when utilized to benefit the City. He explained this request takes advantage of a City Code amendment. The minor subdivision allows the City to purchase 1.4 acres (Parcel A) for Well Site No. 4, and the property owner the ability to sell/use the remaining two lots. The Planning Commission recommended approval with three conditions, which included park land dedication, easements to be shown on the survey, and the Flood Plain issues. Council Member Smith sought clarification regarding the minimum lot size. Planning Director Klatt explained that the remaining two lots are not square due to the elevation, wetland classification, and Watershed District flood plain delineation. City Attorney Snyder interjected his thanks to the Staff and the applicant for the handling of the entire process. Council Member Pearson inquired about the additional Planning Commission recommendations. Planning Director Klatt responded that the recommendations regarding the well house design are to reflect the rural character and will be addressed during the design process. Also, the Planning Commission desires the trail plan be incorporated when the City is working on that portion. MOTION: Council Member Pearson moved to approve a Minor Subdivision to split an existing 19.72 acre parcel at 11240 50th Street North into three separate lots, one of which would be used for public purposes. Council Member Smith seconded the motion. Motion passed 5-0. ITEM 8: RESOLUTION 2012–29 APPROVE ISSUANCE AND SALE OF G. O. IMPROVEMENT BONDS; SERIES 2012 A CROSSOVER REFUNDING BONDS Finance Director Bendel presented the proposal to consider debt restructuring the current $4,090,000 bond due to the interest rates dropping by 2%. The estimated net savings is approximately $344,343 which the City would realize in 2015. MOTION: Council Member Smith moved to approve Resolution 2012–29 Authorizing Issuance and Sale of $4,090,000 General Obligation Improvement Bonds, Series 2012A. Council Member Park seconded the motion. Motion passed 5-0. LAKE ELMO CITY COUNCIL MINUTES JUNE 19, 2012 Page 3 of 7 ITEM 9: RESOLUTION 2012-28 APPROVE ISSUANCE AND SALE OF G. O. IMPROVEMENT BONDS; SERIES 2012 B DEMONTREVILLE HIGHLANDS AREA STREET IMPROVEMENT PROJECT Finance Director Bendel presented the proposal for approval for the issuance of a new bond to cover the Demontreville Highlands Area Street Improvement Project. Due to the stringent competitive bidding on the 2011 Street Improvement projects, the City now has excess funding of $185,000 available to be used to minimize the funding level necessary for the current project. Council Member Smith inquired about whether partial credit would go to the City and partial credit would be refunded to residents who have already paid and adjustments made to homeowners property taxes. Finance Director Bendel responded in the affirmative. Council Member Pearson applauded both staff and Northland Securities for their work on these bonds. MOTION: Council Member Emmons moved to approve Resolution 2012–28 Authorizing Issuance and Sale of $865,000 General Obligation Improvement Bonds, Series 2012B. Council Member Pearson seconded the motion. Motion passed 5-0. ITEM 10: FINANCIAL PLANNING SERVICES AGREEMENT WITH NORTHLAND SECURITIES FOR THE PURPOSE OF ANALYZING WATER, SANITARY SEWER, AND STORM WATER SYSTEMS IN PREPARATION OF WATER MAIN AND SEWER MAIN EXTENSION PROJECTS. City Administrator Zuleger explained the need and reasoning for the original approach to put together a financial plan to recover costs associated with water and other utilities. Council Member Park inquired whether this would include the complete water loop. City Administrator Zuleger clarified that all recommendations would be examined and would include all grants and settlements. Council Member Smith inquired about recovering the design costs of the AUAR, assessing the new developers, and the cost of an Environmental Impact Study (EIS) that would be needed for the I-94 Corridor. City Engineer Griffin reiterated the proposal would address all aspects of the project. Mayor Johnston stated our expectations were that the costs would be recovered as development occurred. City Attorney Snyder added that the costs would need to be recovered in an indirect manner. Council Member Emmons stated whether the goal was to understand how many costs are out there or how we would recover them, why we would not anticipate the infrastructure costs and include those in our developer’s fees. Council Member Pearson questioned whether AUAR costs would be so easy to pass on as indirect costs. City Administrator Zuleger responded that he and City Engineer Griffin will work closely with Northland Securities on this matter. Council Member Park thanked staff for their work on the project. LAKE ELMO CITY COUNCIL MINUTES JUNE 19, 2012 Page 4 of 7 MOTION: Council Member Smith moved to approve the Financial Planning Agreement between the City of Lake Elmo and Northland Securities for an amount not to exceed $5,280 for the Purpose of Developing a Financial Strategy for the Construction of Water Main and Sewer Force Main in the City’s Growth Areas. The Funds are to be Disbursed Equally from the City’s Undesignated Fund Balance and the City’s Water Utility Fund – With Funds to be Recovered Through Mechanism Determined by the Study. Council Member Park seconded the motion. Motion passed 5-0. ITEM 11: ECONOMIC DEVELOPMENT AUTHORITY (EDA) STRUCTURE DISCUSSION City Administrator Zuleger explained the Minnesota Department of Employment and Economic Development document “Powers of EDA’s” which outlines an Economic Development Authority’s (EDA) responsibilities and the purpose of creating an EDA. He explained the EDA in his opinion would be the most encompassing tool for the City to support and encourage development in both the Old Village and the I-94 Corridor. He noted that quality firms seeking to locate in a community prefer working with an EDA regarding the details of a proposed project since the process can be more streamlined, with the City Council making ultimate decisions based on the groundwork of the EDA. He then explained how the EDA in his former city had done the groundwork for the city to acquire 240 acres for an industrial park that resulted in 1,900 new jobs in the city. Council Member Park inquired whether Paul Donna would have anything to offer with regard to EDA's. Mr. Donna, Northland Securities, gave a brief description of an EDA and explained that an EDA has certain abilities that the Council does not have in the way of financing and contracting. He stated he felt there numerous benefits can come to the city through an EDA, but the EDA structure needed to be assembled thoughtfully. He cited some very positive results cities have made possible through their EDA’s. The Council made inquiries with regard to the roles and the power of an EDA in relation to those of the City Council. Paul Donna stated that an EDA could be structured to stand alone with respect to many development functions, but that many cities choose to limit an EDA’s powers regarding such things as bonding and eminent domain. City Administrator Zuleger explained that the concept of ‘quiet enjoyment’, where a city council can become liable for the actions of an independent EDA even if no “full faith and credit” of the city is pledged to EDA financial programs. City Attorney Snyder stated many cities still have their EDA’s, and for the most part answer to the Council but are the basic development arm of the city. When large scale economic development occurs, most developers expect to be dealing with an EDA, as it is a vehicle for the city to be more tightly engaged with commercial activities. He stressed that the governing documents of the EDA are approved by the City Council. Council Member Park reiterated Council’s discretion on the decision made on how the EDA is structured and its responsibilities. Council Member Park inquired how the EDA may specifically benefit the City in future development. LAKE ELMO CITY COUNCIL MINUTES JUNE 19, 2012 Page 5 of 7 Paul Donna explained that in many cities the EDA is a tool to negotiate contracts, and develop financing options for private developments. He provided an example of one city in the Mankato area where the EDA constructed an “incubator building” to attract small and start-up businesses that could grow to the benefit of the city. Mayor Johnston inquired whether how Lake Elmo’s past interaction with Greater MSP could have been better served if the City had an EDA in place. City Administrator Zuleger responded an EDA would be useful when partnering with current businesses and landowners on the I-94 Corridor in creating a Business Park, and explained we could use it in structuring development agreements. City Attorney Snyder stated a case recently where property was proposed for sale to the City and the City was interested in developing the property. The purchase could be handled by an EDA and the EDA can structure the transaction and resulting development how as the City wishes. City Administrator Zuleger explained staff was looking for feedback from council on EDA structure, membership, limitation of powers, etc., and reminded Council it was their number one objective from the Council/Staff Strategic Planning retreat. Council Member Pearson voiced his general support for an EDA, and asked the difference between an Economic Development Authority (EDA) and Economic Development Committee (EDC). Administrator Zuleger stated the EDA has authority and powers that the EDC would not. He stated the EDA can operate under parameters of negotiation set by Council, and the EDA could save much time for the City Council in times of growth, and he considers an EDA to be a safety net for the Council. Council Member Park suggested the City Council be involved in interviewing members of the EDA and have some involvement on the EDA. Mayor Johnston suggested Council provide staff direction in the next week so staff could begin drafting a starting point on creating an EDA. Administrator Zuleger advised the Council that the staff had a template for the ordinance to create an EDA in which the Council could insert its desired options for structure, board composition, and powers of the EDA as well as those reserved for the City Council. Council Member Smith supported the direction of creating an EDA and stated the City should move forward on this in order to move the City in a forward direction. Council Member Emmons stated he would support that. Mayor Johnston stated we could revisit the subject after feedback is received by staff and reconvene at the workshop in July. SUMMARY REPORTS AND ANNOUNCEMENTS Council Member Park had nothing to report. LAKE ELMO CITY COUNCIL MINUTES JUNE 19, 2012 Page 6 of 7 Council Member Pearson attended a library meeting and applauded the work of the Library Board. He attended a meeting with the mayor and administrator at the county regarding economics, and attended a truck meeting with the Fire Department to determine the need. Council Member Emmons reported Washington County Water Consortium meeting; maintenance of rain gardens and stated the county would like to see more city representation on that subgroup and welcomed the Council’s feedback. Council Member Smith met with staff on Fall Festival and discussed changing the name to Elmo Days, making it more of an identity and possibly making it a two-day event; shared her sadness at one of Lake E lmo resident’s drowning and expressed sympathy for the family of the young man. Mayor Johnston reported he met with a perspective candidate running for council and discussed running a campaign; met with city staff and Council Member Smith regarding the history of the Memo of Understanding (MOU) and basis of Comprehensive Plan; attended the groundbreaking for the East Metro Public Safety Training Facility; participated in the Friends of Lake Elmo Library meeting, attended the I-94 Business Corridor meeting with Council Member Pearson, attended the Metro Cities Board meeting where they approved the annual budget; worked on the new library building and commended all the hard work being done and asked for volunteers to help; met with staff, DNR and local lake owners on the water ordinance and stated it seemed to be resolved. City Administrator Zuleger thanked Steve DeLapp and expressed he is a ‘man on a mission’ regarding the library; thanked and commended everyone who made the City Hall upgrade a possibility; noting a Quality Star will be recommended to the Public Works Department; received DNR final approval to keep the high water mark at 929.7 feet; working with Washington County Humane Officer regarding the dog ordinance and process; reported that 22 landowners attended the I-94 Corridor meeting out of 77 personal invitations delivered, and discussed road and sewer water development; will be attending the LMC Annual Conference in Duluth; Thursday’s HOA meeting may be postponed until next week due to attendance. City Attorney Snyder updated the City Council on the final purchase agreement of the library; thanked City Engineer Griffin and Planning Klatt assistance of the Purchase Agreement of Well Site No. 4; the detachment case brief will be filed at end of week; work regarding internal issues. City Engineer Griffin reported he attended a pre-screening board meeting with the municipal State Aid regarding rules for fund distribution; St. Croix Sanctuary development is moving forward after Brown’s Watershed District approval; met with City Administrator CIP scheduling process has started; met with Washington County to better prepare, coordinate and partner with regard to the infrastructure and County corridors. Director of Planning Klatt reported the Village Work Group meeting Wednesday morning; updating the Comprehensive Plan for the Planning Commission’s review for ultimate submittal to Council before METC; attended meeting regarding senior and affordable housing for our community. LAKE ELMO CITY COUNCIL MINUTES JUNE 19, 2012 Page 7 of 7 Finance Director Bendel reported 2nd quarter water bills were mailed; developing new reports, monthly department reports; work on bonding documents; final audit report for July third meeting. ADJOURN: The meeting adjourned at 8:38 p.m. LAKE ELMO CITY COUNCIL _______________________________________ Dean A. Johnston, Mayor ______________________________________ Sandie Thone, City Clerk