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HomeMy WebLinkAbout10-02-2012 CCM LAKE ELMO CITY COUNCIL MINUTES OCTOBER 2, 2012 Page 1 of 8 CITY OF LAKE ELMO CITY COUNCIL MINUTES OCTOBER 2, 2012 Mayor Johnston called the meeting to order at 7:00 P.M. PRESENT: Mayor Johnston, Council Members Pearson and Park. [Council Member Emmons arrived at 7:05 P.M. Council Member Smith arrived at 7:24 P.M.]. Also Present: City Administrator Zuleger, City Attorney Snyder, City Engineer Griffin, Finance Director Bendel, Planning Director Klatt and City Clerk Thone. APPROVAL OF AGENDA MOTION: Council Member Pearson moved to approve the October 2, 2012 City Council Agenda as amended switching the order of items 11 and 12. Council Member Park seconded the motion. Motion passed 3-0. ACCEPTED MINUTES ITEM 1: THE SEPTEMBER 11, 2012 CITY COUNCIL MINUTES WERE APPROVED AS AMENDED (TIME OF MEETING/PAGE 3 FOR PUBLIC SAFETY) BY CONSENSUS OF THE CITY COUNCIL. ITEM 2: THE SEPTEMBER 18, 2012 CITY COUNCIL MINUTES WERE APPROVED AS PRESENTED BY CONSENSUS OF THE CITY COUNCIL. [Council Member Emmons arrived at 7:05 P.M.] PUBLIC COMMENTS/INQUIRIES: PRESENTATIONS: QUALITY STAR RECOGNITION – JAYCEES City Administrator Zuleger explained the purpose of the Quality Star Award is to recognize those in the city and community who go above and beyond. He expressed appreciation for the Jaycee’s commitment to serve and volunteer at the Lake Elmo Days event in September. QUALITY STAR RECOGNITION – ROCK POINT CHURCH City Administrator Zuleger expressed appreciation for Rock Point Church’s commitment to serve and volunteer at the Lake Elmo Days event in September and for their popular event: The Stick Pony Rodeo. UTILITY INFRASTRUCTURE FINANCIAL PLAN – TAMMY OMDAHL Tammy Omdahl of Northland Securities presented an overview of the Utility Infrastructure Financial Plan. She explained the report recommendations for connection of sewer and water for LAKE ELMO CITY COUNCIL MINUTES OCTOBER 2, 2012 Page 2 of 8 future properties, the conservative structuring of projected debt, and the adoption of a formal fund balance policy. Ms. Omdahl provided an overview of the projected Capital Improvement Plans and Debt Service. In response to council and staff inquiries, Ms. Omdahl explained if growth is greater, the city may push forward some of the revenues if the growth supported it. In response to council inquiries regarding the interest rates utilized in the report, Ms. Omdahl explained the long term rate was estimated at 50 points above what the rates are currently, but the short term rate was estimated at 2 to 2-1/2 percent or 25 basis points above current rating. She presented a comparison of neighboring community rates for water, sewer, and storm water. Lake Elmo is at the middle to higher end for each. [Council Member Smith arrived at 7:24 P.M.] She explained the Financial Plan as it relates to options the city will have in choosing to utilize bonding and/or cash to pay for the projects. She explained financial figures were determined with the objective to maintain a cash balance equivalent to 50% of operating expenditure. Again, growth will play a major role in impacting the estimated rates and options. Inquiries were made regarding the assumptions made on growth, especially south of 10th street and City Administrator Zuleger explained the numbers in the report are conservative and confirmed the million dollar grant is included in these numbers. The currently known interested developers expect a typical pace of 20-40 lots per year. Once sewer and water are available, the numbers are expected to increase exponentially. Commercial units are not as well understood at this time and are very conservative in this report. The years 2013 through 2015 are about 70 percent based on the I-94 Corridor Plan. Currently the city has no Sewer Access Charge. In the report, the SAC charges are recommended in lieu of assessment charges for sewer connection. She explained the report recommendations would require the property owners who have the pipe running in front of their property to pay the access charges (SAC) to gain revenue for the project. Council expressed concerns for residents who opposed development having to pay even if they were not interested in sewer/water connection. Council Members Pearson and Smith expressed their support for the connection charges. City Attorney Snyder explained this presentation was to begin discussion about the items and review the options presented. He explained the two different options with numerous variations that would likely be vetted out in the near future. Council inquired about the rates appearing greater in comparison to the communities represented in the report. It was explained that the tier structure is not shared by all communities, but the neighboring utility structures all vary greatly. The large lot sizes in the community could also play a role in higher payments. City Administrator Zuleger reminded that the use of Oakdale’s water also increases rates. LAKE ELMO CITY COUNCIL MINUTES OCTOBER 2, 2012 Page 3 of 8 Council Member Emmons raised concerns about the ballooning effect towards the end of the proposed plan and the potential burden in the future. Ms. Omdahl confirmed his estimated per acre charge breakdown. City Administrator Zuleger confirmed that the City was going to continue Storm Water Fund analysis because of the current ongoing projects. CONSENT AGENDA 3) Approve Payment of Disbursements and Payroll of $297,285.85. 4) Resolution 2012-49 Designating Data Practice Officials and Approving City’s Data Practices Policy 5) Resolution 2012-50 Approving Tax Forfeited Parcels for Public Auction 6) 2012 Seal Coat Project – Pay Request No. 1 (Final) 7) I94 Corridor East Gravity Sewer – Approve Engineering Services to Prepare Revised Easement Exhibit 8) Resolution 2012-51 Approving Delinquent Storm Water Assessments 9) Resolution 2012-48 Approving Joint Powers Agreement for Building Services Pool 10) Demontreville Park Purchase of Benches and Foul Line Fence MOTION: Council Member Pearson moved to approve the Consent Agenda as presented. Council Member Park seconded the motion. MOTION PASSED 5-0. REGULAR AGENDA ITEM 12: APPROVE ORDINANCE 2012-63 AMENDING CITY CODE SECTION 150.250 PERTAINING TO SHORELAND STANDARDS Planning Director Kyle Klatt explained this amendment was to bring the Shoreland standards into conformance with state statutes and specifically explained the change of setbacks from 20 feet to 10 feet from the OHW. This distance would be in line with the Minnesota state statutes. The Planning Commission recommends the council adopt the proposed amendment. MOTION: Council Member Pearson moved to adopt ORDINANCE 2012-63 AMENDING CITY CODE SECTION 150.250 PERTAINING TO SHORELAND STANDARDS. Council Member Smith seconded the motion. MOTION PASSED 5-0. ITEM 11: KEATS AVENUE NORTH MSA STREET AND TRUNK WATERMAIN IMPROVEMENT PUBLIC HEARING AND RESOLUTION 2012-42 ORDERING IMPROVEMENTS AND PREPARATION OF PLANS AND SPECIFICATIONS MOTION TO RECONSIDER REHEARING MADE BY COUNCILMEMBER PARK; SECONDED BY MAYOR JOHNSTON. MOTION PASSED 4-0. SMITH ABSTAINED LAKE ELMO CITY COUNCIL MINUTES OCTOBER 2, 2012 Page 4 of 8 City Engineer Jack Griffin presented information on the Keats Avenue North MSA Street and Trunk Watermain Improvement project. He provided a summary of the feasibility report that was previously received by the Council. He explained the alternatives of maintaining the Rural Road as proposed, as well as the Urban Road option with curb and gutter, which allows the city to maintain the existing footprint and avoid the excessive costs of other plans. Mr. Griffin also explained the need for closing the critical water system loop to support the system up in the north. This will need to be done at some point regardless. He explained the findings of the hydraulics study, explained the well system structure, and the water stubs for future connectivity. The proposal would include assessments on 22 properties benefiting from the improvements. He explained street and water cost breakdowns. The city would pay 94% of the street improvements. The owners would pay 6% of the project. Mr. Griffin explained the proposed timeline. Should the project be approved this evening, the selection proposal would be brought back to Council November 6, 2012 for approval and a spring 2013 start date. Council Member Park inquired about the critical loop and whether it would be required if we were not going to move ahead with the I-94 corridor project loop. Mr. Griffin responded the Keats section is still part of a critical loop for the original water system. Council Member Park inquired whether not including stubs initially would save money. Mr. Griffin responded the cost to re-tear up the road later to connect would be greater than the cost of installing the stubs initially. A discussion was had over what properties would be affected. The properties that have direct access to Keats Avenue would be the properties assessed. Council Member Emmons inquired about potential issues with the projected service area according to the map provided. City Engineer Griffin assured him it would not be an issue and stated the map used was more of a planning map. Mr. Griffin briefly explained the process for setting the assessments and determining the project service area. City Attorney Snyder clarified that the purpose of the motion at this time was to approve the order of plans and specifications, which will give direction to the Engineer and set a maximum assessment amount. Later an assessment hearing will be held to specifically determine the details of the assessments. OPEN PUBLIC HEARING AT 8:19 P.M. PUBLIC COMMENTS: George Dege, 5193 Keats Avenue North, raised concerns about the project but supports the need for the project. His concern was the cost of the project. He understands the need for the street assessment, but the he felt the water portion should be the responsibility of the city, not the property owners, since he knows of only one owner who would like to connect to date. Therefore, you are charging 22 property owners who have septic systems, some relatively new, and he recommended the city charge only those wishing to hook up. Robert Meyer, 5220 Keats Avenue North, explained he spoke with both the county assessor and some realtors regarding the claim that this will improve the property whether they hook up or not and he found the answer was no. He does not feel it will increase the value of their homes. He LAKE ELMO CITY COUNCIL MINUTES OCTOBER 2, 2012 Page 5 of 8 asked the council for consideration to make this charge reasonable – say the 3900 not the 5900 proposed. Rick Egersdorf, 9960 57th Street North, stated he lives on both Keats Avenue and 57th Street. He expressed that he feels he does not have all the information he would need to abandon his driveway on Keats Avenue. He also has yet to understand what the street project may hold for the future on 57th Street. George Crocker, 5390 Keats Avenue North, expressed his appreciation for the consideration the council is giving to the residents but explained that this situation is a direct result of the 3M contamination, and the responsibility should fall to them, not the property owners. Richard Eder, 9825 47th Street, explained the watermain is going from one development to another and supports the project for the good of the city. However, it is not really benefiting the properties in between. Because the project has changed, it will now affect his property with up to two homes that could possibly hook up to it. He believes the City should reconsider the route and assessment procedure to be more equitable. William Vogel, 5055 Keats Avenue North, is considering connecting to the watermain due to the condition of his current well. He inquired whether residents would be required to connect or if he could opt to put in another private system. City Administrator Zuleger responded the city does not currently require them to connect or prohibit private systems if adjacent to the public system. Joe Magill, 5275 Keats Avenue North, stated he has lived in Lake Elmo for 18 years. He feels this is not right. He stated that if he did decide to connect, he would be happy to pay for it. Stated he loves the city. He believes that any benefit should be assessed when they sell. Rod Sessing, 5699 Keats Avenue North, expressed his opinion that linear distances to watermain should be used in deciding what properties are assessed instead of driveway access to Keats. He explained the water would be just as easily available to all the people on 57th, 59th and 54th, 53rd and 51st. He expressed the desire to share the assessments more broadly. Some of these other properties are closer than those located on Keats Avenue. He also stated that a well is cheaper than the cost to connect and most of them are not going to hook up. CLOSE PUBLIC HEARING AT 8:43 P.M. Council Member Park asked City Engineer Griffin to address the point of adding those properties to the assessments. He responded that this follows the city’s current assessment policy. You are identifying properties to the actual properties that can connect when the project is completed. Including the other properties would require additional projects in order to connect. Mayor Johnston expressed there have been many valid concerns raised and there is much work to do before we bring this to an assessment hearing. Council Member Emmons expressed his appreciation for the public’s input, concern, and valid comments. He expressed his understanding for the fact that the property owners’ were potentially being assessed for something they would not use or benefit from. LAKE ELMO CITY COUNCIL MINUTES OCTOBER 2, 2012 Page 6 of 8 City Administrator Zuleger explained several assessment options, to not assess owners and spread the costs across the entire city, the green acres principle assessing at the sale of the property, and assessing full amount when the property chooses to connect. He recommended moving the plans/specifications portion along and further discussing the assessment options. Council Member Pearson expressed his appreciation for the property owners’ concerns and stated the all current users are in fact paying now to support the system. He expressed his hope that the public realizes that the Council is considering the public’s comments. Mayor Johnston moved to approve RESOLUTION 2012-42 ORDERING IMPROVEMENTS AND PREPARATION OF PLANS AND SPECIFICATIONS FOR KEATS AVENUE NORTH MSA STREET AND TRUNK WATERMAIN IMPROVEMENT. Council Member Park seconded the motion. Council Member Emmons raised concerns about the project and the investment for the project area. He asked whether this was the best place to invest the city’s money at this time and inquired if the City could look at other creative options that may cost less than one million dollars and would provide a more significant impact. He acknowledges the benefit but would prefer a more conservative option. Mayor Johnston expressed this is a project that residents have expressed support for – many who have felt they have been forgotten. Council Member Smith explained when the comp plan was written it included many areas and was designed for the entire city’s benefit. She acknowledged that it is a tough decision, but all of the options have been considered, and although she understood and even agreed with Council Member Emmons’ concerns, it is time to move forward with these projects. She also expressed her appreciation for all of the property owners and their concerns. Council Member Park thanked City Engineer Griffin for his work on this project. Council Member Pearson explained it is a tough situation but not a tough decision. It is time to move on this project. Council Member Emmons expressed his appreciation for staff’s work but reiterated the densities are low to accommodate the infrastructure. MOTION: Mayor Johnston moved to approve RESOLUTION 2012-42 ORDERING IMPROVEMENTS AND PREPARATION OF PLANS AND SPECIFICATIONS FOR KEATS AVENUE NORTH MSA STREET AND TRUNK WATERMAIN IMPROVEMENT. Council Member Park seconded the motion. MOTION PASSED 4-1; EMMONS NAY. 3-MINUTE RECESS NEW BUSINESS DISCUSSION ONLY ITEM: SALE OF INTERIM LIBRARY/ART CENTER BUILDING LAKE ELMO CITY COUNCIL MINUTES OCTOBER 2, 2012 Page 7 of 8 City Administrator Zuleger explained that perhaps the building with its location near the Village should be brought to the Village Work Group for discussion on how to proceed. Mayor Johnston explained the building was bought with Park money and we would need to understand the ramifications of that in moving forward with a decision. Council Member Smith concurred with the plan to bring the discussion to the Village Work Group. Council Member Emmons agreed the land/site might be valuable to the area. Council Member Pearson expressed we could rent it and inquired about a previous arts study. Mayor Johnston responded that the findings were inconclusive, but suggested that the arts interest was primarily in Stillwater, except by those from Lake Elmo. Mayor Johnston suggested including the Art Center Board’s input and the Library Board’s input. Council Member Smith suggested the Village Work Group discuss it at their next meeting. Council Member Pearson encouraged the decision happen in a timely fashion in the event it could be rented out as early as next month. SUMMARY REPORTS AND ANNOUNCEMENTS Council Member Smith asked that politicking not take place at meetings. [Council Member Smith departed at 9:25 P.M.] Council Member Emmons reported he was very impressed by the library and was encouraged by the positive comments. Council Member Park thanked the wonderful city staff for all of their hard work. Council Member Pearson reported he attended a Village Planning meeting, Greater Stillwater Chamber of Commerce meeting, and added the Library Board inquired about the potential and merit of hiring a full time librarian. Mayor Johnston reported he attended the Gateway Corridor Policy Advisory Committee meeting, Mahtomedi School District Leadership meeting, the GEARS (the Grant Evaluation and Ranking System Committee) meeting, and the Gateway Corridor meeting. Also, the Library Board meeting, where they are making progress on the goals and vision for the library; Orientation for the Metropolitan Parks and Open Space Commission, where they discussed the Lake Elmo Park Reserve and the options available for the City’s Parks Commission to become involved; The Mayor noted he would like to be more proactive in working with the County on accessing grant money for trails. City Administrator Zuleger shared a report from Washington County Sherriff’s office for September and out of 121 stops, 93 were speed related. Twenty-six were Lake Elmo residents or 21.2%; working with Parks Commission on Parks Usage Survey and developing a trail plan; meeting with Oakdale on and Woodbury on inter-governmental and utility issues; detailing of work and staff “lane assignments” have been defined; Water Utility Inquiries/complaints: out of 1,011 customers, 265 customers or 26.2 percent used over 70,000 gallons. Twenty-six have bills over $1000 per quarter. The tiered structure charges more for heavy users; Staff is looking at developing summer watering rates; recruiting Humane Officer at the request of Woodbury shelter. City Attorney Snyder deferred to executive session. LAKE ELMO CITY COUNCIL MINUTES OCTOBER 2, 2012 Page 8 of 8 City Engineer Griffin reported that in the comp plan the purpose of using conservation rates is to eventually drive down the peak demand. MnDOT has tentatively scheduled an open house for November 15 on the Hilton Trail Interchange project. MnDot will also attend the November 7 Council meeting to provide the project info. Planning Director Klatt reported Damon Farber will join the Village Work Group and take a walking tour through the Village; Planning Commission meeting rescheduled due to the holiday, attended the American Planning Association conference; adjacent community review comments on the comp plan are beginning to come in. Finance Director Bendel reported most of her time has been spent on water billing and backing up Tammy Omdahl. MOTION: Council Member Emmons moved TO ADJOURN TO CLOSED SESSION PER ATTORNEY- CLIENT PRIVELEGE TO DISCUSS PENDING LITIGATION/DETACHMENT HEARING APPEAL; Motion seconded by Council Member Pearson. MOTION PASSED 4-0 at 9:48 P.M. CLOSED SESSION TO DISCUSS DETACHMENT HEARING APPEAL In attendance at closed session: Mayor Johnston, Council Members Emmons, Pearson and Park, City Attorney Snyder and associate counsel, City Administrator Zuleger, and City Clerk Thone. ADJOURN: The closed session meeting adjourned at 10:08 P.M. MEETING RECONVENED in open session to act on motion by Council Member Emmons TO CONTINUE WITH APPEAL OF DETACHMENT AND MOVE TO COURT OF APPEALS. Motion seconded by Mayor Johnston. MOTION PASSED 4-0 Adjourned open meeting at 10:09 P.M. LAKE ELMO CITY COUNCIL _______________________________________ Dean A. Johnston, Mayor ______________________________________ Sandie Thone, City Clerk