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HomeMy WebLinkAbout07-16-2013 CCM LAKE ELMO CITY COUNCIL MINUTES July 16, 2013 Page 1 of 7 CITY OF LAKE ELMO CITY COUNCIL MINUTES July 16, 2013 Mayor Pearson called the meeting to order at 7:15 P.M. PRESENT: Mayor Pearson, Council Members Bloyer, Nelson, and Smith. Also Present: City Administrator Zuleger, City Attorney Snyder, Planning Director Klatt, City Engineer Griffin, Finance Director Bendel, and City Clerk Bell. PLEDGE OF ALLIGENCE APPROVAL OF AGENDA Council Member Smith requested that Item H be moved to August 6th. MOTION: Mayor Pearson moved TO POSTPONE ITEM H TO THE AUGUST 6TH MEETING. Council Member Nelson seconded the motion. MOTION PASSED 4-0. In the spirit of Speak Your Peace, Mayor Pearson apologized for taking a shot at previous councils. He said he regrets it. Speak Your Peace is about taking responsibility, so he wants to do that. Mayor Pearson pulled Items 7 and 10 from the Consent Agenda for discussion. City Administrator Zuleger asked that a discussion with the City Attorney Snyder regarding the detachment appeal be added to executive session. MOTION: Mayor Pearson moved TO APPROVE THE JULY 16, 2013 CITY COUNCIL AGENDA AS AMENDED. Council Member Nelson seconded the motion. MOTION PASSED 4-0. ITEM 1: ACCEPT MINUTES THE JULY 02, 2013 CITY COUNCIL MINUTES WERE APPROVED AS AMENDED BY CONSENSUS OF THE CITY COUNCIL. PUBLIC COMMENTS: Library Board President Steve DeLapp introduced the new Lake Elmo Library Director Linda Orsted. Ms. Orsted is originally from International Falls, MN and has a Masters in Library Science. She previously was the director of library near Pittsburgh, PA, and was in Marinette, WI before that. Ms. Orsted said she is excited to join the City and looks forward to helping the library be a part of the community. SPEAK YOUR PEACE: Tabled to 8/6. PRESENTATIONS None CONSENT AGENDA LAKE ELMO CITY COUNCIL MINUTES July 16, 2013 Page 2 of 7 2. Approve Payment of Disbursements and Payroll in the amount of $499,391.22. 3. Accept Financial Report dated June 30, 2013 4. Accept Building Permit Report dated June 30, 2013 5. Approve Keats MSA Street and Trunk Watermain Improvements – Change Order No. 2. 6. Approve Keats MSA Street and Trunk Watermain Improvements – Pay Request No. 2. 7. Approve MnDOT Maintenance Agreement (No. 04109) - TH 5 Pedestrian Crossing; Resolution 2013-54 8. Approve Encroachment Agreement – 12521 Marquess Way 9. Approve Encroachment Agreement – 11619 58th Street North 10. Approve Master Escrow Agreement for Municipal Review Services MOTION: Council Member Bloyer moved TO APPROVE THE CONSENT AGENDA AS AMENDED. Council Member Smith seconded the motion. MOTION PASSED 4-0. ITEM 7: APPROVE MNDOT MAINTENANCE AGREEMENT (NO. 04109) - TH 5 PEDESTRIAN CROSSING; RES. 2013-54 City Engineer Griffin gave a summary of the project. Stated there will be a public open house on 8/21/2013. The project will include installing a crosswalk with a raised median. The City will be responsible for maintenance. This measure is expected to have a calming effect on the road. Mayor Pearson thanked staff and MnDOT for the hard work in getting this done. Council Member Nelson asked about cost savings if the flashing signal was included at this time. City Administrator Zuleger said that he has asked the Lake Elmo Elementary School PTA about cost sharing, but has not heard back yet. Council Member Smith asked about refuge for crossing guards. Mr. Griffin said that it is still a work in progress. Mr. Zuleger thanked MnDOT as well. MOTION: Council Member Smith moved TO APPROVE ITEM 7 ON THE CONSENT AGENDA: RESOLUTION NO. 2013-54, APPROVING MNDOT MAINTENANCE AGREEMENT NO. 04109. Mayor Pearson seconded the motion. MOTION PASSED 4-0. ITEM 10: APPROVE MASTER ESCROW AGREEMENT City Administrator Zuleger explained the purpose and intent for the agreement. Going forward developers will deposit funds when submitting a development application. This will protect the City and staff for resources expended while reviewing applications. Council Member Nelson thanked staff for bringing forward. He stated that this is risk protection for the tax payer as well. MOTION: Council Member Nelson moved TO APPROVE ITEM 10 THE MASTER ESCROW ON THE CONSENT AGENDA: THE 2013 CITY OF LAKE ELMO MASTER ESCROW AGREEMENT FOR MUNICIPAL SERVICES COMPLETE WITH EXHIBITS AND SUBJECT TO THE 2013 FEE SCHEDULE WHERE APPLICABLE. Council Member Smith seconded the motion. MOTION PASSED 4-0. REGULAR AGENDA ITEM 11: ACCEPT RESIGNATION OF COUNCIL MEMBER PARK AND DECLARING A VACANCY; RES. 2013-55 LAKE ELMO CITY COUNCIL MINUTES July 16, 2013 Page 3 of 7 City Clerk Bell provided the background and legal process defined by the Minnesota Statutes for accepting a resignation and declaring a vacancy. Council had no questions. Council Member Bloyer stated he was saddened to see Council Member Park go. MOTION: Mayor Pearson moved TO ADOPT RESOLUTION NO. 2013-55, A RESOLUTION ACCEPTING RESIGNATION AND DECLARING A VACANCY. Council Member Smith seconded the motion. MOTION PASSED 4-0. ITEM 12: APPOINTMENT TO FILL COUNCIL MEMBER VACANCY; RES. 2013-56 City Clerk Bell summarized the background and explained the legal process defined by the Minnesota Statutes for city councils to fill vacancies. Council Member Bloyer noted that aside from a few specific issues, he and the candidates were generally in agreement. He stated that many of his preconceptions were eliminated during the conversations with the candidates. Council Member Smith noted her disappointment with not having more time to discuss. Council Member Nelson stated that all 4 candidates are qualified and that it is a tough decision. Mr. Bloyer read one of the questions that were asked to all the candidates during the interview. He Mr. Reeves responded with a tangible answer. Mr. Reeves wants to lead and had stated some of the achievements that we would like to accomplish during his tenure. Ms. Smith expressed her desire for more privacy in order to have more candid discuss. She stated she likes Ms. Fliflet for her ability to disagree with policy questions. Ms Smith also believes that Ms. Fliflet has the ability to “agree to disagree.” In addition, Ms. Fliflet has the benefit of history and her experience. Mr. Bloyer took issue with the assertion of Ms. Fliflet’s ability to agree to disagree. City Attorney Snyder suggested that the Council discuss what is liked or disliked about the responses and not the individual merits of each candidate. Mr. Nelson liked the representative republic question and stated that Mike Reeves offered the best answer in his opinion. Mr. Nelson also believed Mr. Reeves was collaborative and practical. Mayor Pearson stated that he likes Mr. Reeves. The Mayor also said he appreciates Ms. Fliflet’s work and contributions in the past, but does not place as much value on history. He believes it can also be a negative at times. He thinks Mr. Reeves brings something beneficial to council, and the Council would do well to have Mike Reeves on. Ms. Smith reiterated Fliflet’s experience. She noted that she wants to have a unanimous vote, but thinks that Ms. Fliflet would have been better choice. She likes Mike Reeves, but would prefer Julie Fliflet. Mayor Pearson stated that he does not believe a unanimous vote is needed. Not everyone can get over it, but he believes Mr. Reeves will. Mr. Pearson urged Ms. Smith to vote the way she wishes. LAKE ELMO CITY COUNCIL MINUTES July 16, 2013 Page 4 of 7 MOTION: Council Member Bloyer moved TO APPOINT MIKE REEVES TO THE COUNCIL FOR THE REMAINDER OF THE TERM PREVIOUSLY HELD BY COUNCIL MEMBER NICOLE PARK, AND HIS APPOINTMENT SHALL EXPIRE ON JANUARY 5, 2015. Mayor Pearson seconded the motion. MOTION PASSED 3-1 (SMITH NAY). Council Member Smith explained that she voted no because she would have chosen ex-Planning Commissioner Fliflet for her experience and knowledge. ITEM 13: SECTION 34 WATER AND SEWER UTILITY EXTENSION IMPROVEMENTS – APPROVE REPORT AND ASSESSMENT METHODOLOGY AND APPROVE PLANS & SPECIFICATIONS; RES. 2013-57, RES.2013-58 City Engineer Griffin gave an overview of the Section 34 project. The project includes 16 parcels owned by 9 property owners. Current proposals shown to staff are by Amaris, Savona (Lennar), and Hammes Estates (Ryland). Grading has been an issue due to timing and coordination. As a result, sewer will mostly hug the I94 corridor. The City will be extending sewer and water to this area. The sewering will consist of a gravity sewer and forcemain. The forcemain costs are only being shared by a portion of the Lennar development. The gravity sewer costs will be shared by all. Mr. Griffin explained the sewer improvement costs. Total is $1,706,000. Parcel 1b was not included in the assessment roll because it was determined that the parcel does not receive benefit from the proposed improvements. Parcel 1a theoretical costs were capped. It was explained that it was not receiving benefit. Mr. Griffin explained the water improvement costs. Total is $1,706,000. Grand total for both sewer and water is $2,378,200. Sewer and water are enterprise funds and are self operating with 100% assessed to developments. Mr. Griffin explained that easements are still needed. Property owners will be requested to provide easements at no cost to the city/project. It was also explained that the waivers should be obtained now. Council Member Smith asked about the 1,092 REC units in Section 34 when the entire south of 10th street is only planned for 3,200. Planning Director Klatt explained that the number also includes commercial. 1,300 commercial REC units are included in the total 3,200. City Administrator Zuleger said that most of the MOU relief will come in residential RECs due to market conditions. Ms. Smith is concerned that the south of 10th density could get too high. She stated she does not want 5,000-6,000 housing units in along I94. It was explained that the current proposal is actually lower than the MOU with only about 2.75 RECS per acre. The MOU is 3.2 RECs per acre. Council Member Nelson asked for the commercial versus residential REC numbers for the area. Staff said that it would be provided to him. Council Member Bloyer asked if the REC units ever did get higher, would it be a comp plan amendment. Mr. Zuleger responded that it would. Mr. Griffin recommended that all the easements be obtained at no cost to city. The assessments would be at a 15 yr at 2% over city bond rate. LAKE ELMO CITY COUNCIL MINUTES July 16, 2013 Page 5 of 7 It was then explained that if the City received 100% waiver rate, a public hearing is not needed. If not 100% waived, a hearing is required. On September 3rd, staff will present bids and council will be asked to award project. Mr. Nelson asked about a possible outlier and how it would work. What exposure would city have financially? City Attorney Snyder stated that Council would have to decide whether to do project or not. Mr. Snyder explained legal process. It is both the attorney's belief that an outlier is unlikely. Recovering those costs at a later date was discussed. Mr. Nelson asked about costs changing and how it is split. Mr. Griffin explained that once hearing takes place, the City can decrease the costs but not increase. Mr. Bloyer noted an email from a resident who had concerns about their sewer. Some residents may feel forgotten if left out of these projects. Mr. Bloyer stated that this Council is very cognizant of the issues, and that roads and sewers are being approved and getting built. Mr. Nelson reported that he also received the same email. Mr. Zuleger reiterated that these projects are enterprise funds and will not affect tax rate. MOTION: Council Member Nelson moved TO ADOPT RESOLUTION 2013-57, RECEIVING THE FEASIBILITY REPORT AND CALLING HEARING ON IMPROVEMENT FOR THE SECTION 34 WATER AND SEWER UTILITY EXTENSION IMPROVEMENTS. Council Member Bloyer seconded the motion. MOTION PASSED 4-0. MOTION: Mayor Pearson moved TO ADOPT RESOLUTION 2013-58, APPROVING THE PLANS AND SPECIFICATIONS AND ORDERING THE ADVERTISEMENT FOR BIDS FOR THE SECTION 34 WATER AND SEWER UTILITY EXTENSION IMPROVEMENTS. Council Smith seconded the motion. MOTION PASSED 4-0. Council Member Bloyer left chambers at 8:30PM. ITEM 14: 2012 FINAL AUDIT REPORT REVIEW Finance Director Bendel explained the background of changing audit firms. Jason Miller, from city auditors Smith, Schafer & Associates, presented the audit report. He thanked Dean, Cathy, and staff. Smith, Schafer & Associates has issued an unqualified opinion. This is the highest opinion. It was explained that the auditors also tested for MN legal compliance. Mr. Miller explained the types of funds the city has. These basically consist of General Funds and Enterprise Funds. Council Member Bloyer returned to chambers at 8:37PM. Mr. Miller explained the City revenues. Property taxes are the main source of revenue. He then explained expenditures. He spoke about the unassigned general fund balance. 2012 is at 88%. 2013 is at 90%. It was explained why it is desirable. The total outstanding bonds and certificates were at $16,905,000 on 12/31/12. Mr. Miller went over the management letters, which included the following conclusions: No difficulties were encountered. No corrected or uncorrected misstatements. No disagreements with management. No management consultation with other accountants (potentially opinion shopping). LAKE ELMO CITY COUNCIL MINUTES July 16, 2013 Page 6 of 7 The Internal Control Management Letter noted the following significant deficiencies: limitations due to city size on duty segregation; reconciliation of investment accounts to general ledger; and utility billing software. Council Member Nelson asked about the utility billing software. City Administrator Zuleger explained that staff does want to have a discussion about converting and costs and timing. Within the next few years new package is needed. Conversion is the greatest challenge. It is inefficient to have two software programs that do not talk. Most likely, this upgrade will be a 2015 budget request. MOTION: Council Member Smith moved TO ACCEPT THE 2012 YEAR-END ANNUAL FINANCIAL REPORT AND MANAGEMENT LETTERS. Council Member Bloyer seconded the motion. MOTION PASSED 4-0. Mayor Pearson called for a point of privilege at 8:54PM. Meeting reconvened at 8:58PM ITEM 15: COUNCIL RETREAT AGENDA UPDATE City Administrator Zuleger provided an update of the retreat agenda. Modifications were pre and post meeting sessions scheduled for the Council. Mr. Zuleger presented the overview of the final agenda. There was no Council discussion or formal action. ITEM 16: ZONING TEXT AMENDMENT – FENCE ORDINANCE; ORD. 08-086 Council Member Nelson asked if an immediate motion was appropriate as Council has already discussed this subject for two months. Council Member Smith noted that the word “wall” should be removed from Section E.2 as it is redundant and this correction was previously noted. MOTION: Council Member Nelson moved TO APPROVE ORDINANCE 08-086, ESTABLISHING NEW FENCING REGULATIONS IN THE LAKE ELMO ZONING CODE. Council Member Bloyer seconded the motion. MOTION PASSED 4-0 MOTION: Council Member Nelson moved TO DIRECT STAFF TO REPORT TO COUNCIL THE NUMBER OF FENCES APPLIED FOR AND WHAT TYPE IN ORDER TO HAVE A QUARTERLY ORDINANCE REVIEW PROCESS. Council Member Bloyer seconded the motion. MOTION PASSED 4-0 SUMMARY REPORTS AND ANNOUNCEMENTS Council Member Nelson – reported attending Valley Cartage ribbon cutting. Though it is a great building and business. Council Member Smith – no report. Mayor Pearson – reported attending Valley Cartage ribbon cutting as well; EDA had a great meeting and seems to be a great group; attended library board meeting; at the next council meeting he wants to appoint Brett Emmons to the library board; thanked council applicants. Encouraged applicants to continue pursuing the path of service to Lake Elmo. Council Member Bloyer – reported meeting with residents regarding brush clean up; learned about the weir. City Administrator Zuleger – reported working on master escrow agreement; code enforcement is progressing and also increasing as expected. Hardy property is turned over to the county due to LAKE ELMO CITY COUNCIL MINUTES July 16, 2013 Page 7 of 7 tax forfeiture issues; regarding the lake issue – MNDNR said no EAW needed; Staff continues to meet with developers. Three active projects in the Old Village being proposed; Public Works is still actively cleaning brush. Still planning to have round table to discuss action; Council Member Smith recommended that residents bring brush to Public Works facility at this point. It was noted that Washington County has been very helpful in accommodating the cleanup efforts. Council Member Bloyer asked about the City’s exit-strategy. Ms. Smith said it should be done now and the remaining brush should be brought to the Public Works facility. City Attorney Snyder – no update. Planning Director Klatt – reported submitted Village Comp Plan to Met Council. Been dealing with MAC on safety zones; reviewing Savona preliminary plat. Planning commission will hold public hearing on the plat on 7/29; reported that the Gateway Corridor Commission needs another alternate. Who will serve was discussed. Council Member Smith volunteered to serve on it. City Engineer Griffin – reported on TH 5 effort. Working to get turn lane put back in. Hilton trail interchange project. Hilton Trail will be closed starting this week and through September. HWY 36 will remain open. Rain gardens were discussed. It was agreed that the program would be looked at and reevaluated. There is an issue of some gardens failing and both the Washington County Conservation District and Valley Branch Watershed District are pushing back on funding. Council Member Nelson asked for an update on the Olson Lake Trail sewer project. Mr. Griffin said that there has not been much progress. The City is still waiting to hear back. There is also a shortage of contractors for the volume of work out there. Finance Director Bendel – reported working on bonding documentation; budget. 8/13 workshop scheduled; Water bills will be going out soon. Public Works not been able to do the meter reads due to the storm clean up and equipment issues; City Clerk Bell – Notified the council about a pending insurance claim related to an injury at the library. The League of MN Cities will be paying the medial claim, but nothing else. The city has not other liability anticipated. There was a discussion of when to reschedule the November 5, 2013 meeting. It was agreed to reschedule to Wednesday, November 6, 2013. MOTION: Mayor Pearson moved TO CLOSE MEETING AND ENTER EXECUTIVE SESSION PER MINNESOTA STATUTE 13D.05, SUBD. 3(B) ATTORNEY CLIENT PRIVILEGE REGARDING CITY OF LAKE ELMO V. 3M CORPORATION AND THE DETACHMENT APPEAL. Council Member Smith seconded the motion. MOTION PASSED 4-0. Meeting adjourned to executive session at 9:30 P.M. LAKE ELMO CITY COUNCIL _______________________________________ ATTEST: Mike Pearson, Mayor ______________________________________ Adam R. Bell, City Clerk