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HomeMy WebLinkAbout08-06-2013 CCM LAKE ELMO CITY COUNCIL MINUTES August 06, 2013 Page 1 of 8 CITY OF LAKE ELMO CITY COUNCIL MINUTES August 06, 2013 Mayor Pearson called the meeting to order at 7:00 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 City Clerk Bell swore in new Council Member Mike Reeves. APPROVAL OF AGENDA MOTION: Council Member Smith moved TO APPROVE THE AUGUST 06, 2013 CITY COUNCIL AGENDA AS AMENDED. Council Member Nelson seconded the motion. MOTION PASSED 5-0. ITEM 1: ACCEPT MINUTES THE JULY 16, 2013 CITY COUNCIL MINUTES WERE APPROVED AS AMENDED BY CONSENSUS OF THE CITY COUNCIL. PUBLIC COMMENTS: Librarian Linda Orsted spoke about the library and her desire to partner with the City. 1000 library cards have been issued. There have been 880 visits in July. Continuing summer reading program. Coffee and periodicals are popular. Programming on Wednesdays include a game and nutrition day. Storytelling events involving Cathy Cowen and Cheryl Sawyer. SPEAK YOUR PEACE: Council Member Smith spoke about the SYP tenet of Be Inclusive. This principle means welcoming all groups of citizens to work towards the improvement of the community. Lake Elmo is full of energized citizens, and while perhaps not always in agreement, the City has an obligation to include all residents’ input. Council Member Bloyer will be next. PROCLAMATION Mayor Pearson read the Lake Elmo Days Proclamation. September 6-7 is the 2nd Annual Lake Elmo Days. PRESENTATIONS City Administrator Zuleger recognized Washington County Commissioner Gary Kriesel and Mike Polehna for their efforts in the storm damage cleanup. Wayne Sandberg was also recognized for his assistance, but he was not able to attend the meeting. Commissioner Kriesel said his relationship with Dean Zuleger is great and taxpayers expect collaboration from government. Mike Polehna reiterated the great relationships and partnerships. LAKE ELMO CITY COUNCIL MINUTES August 06, 2013 Page 2 of 8 He also said he was told last weekend that the regatta held on Lake Elmo was the largest event and the finest area they have ever held in the US. He again attributed the success to the partnership. CONSENT AGENDA 2. Approve Payment of Disbursements and Payroll 3. Approve rescheduling of November 5, 2013 Council Meeting 4. Authorization for John Schiltz to Dispense Beer and Wine Coolers at Lake Elmo Days Community Event on September 6 and 7, 2013 5. Appointment of Brett Emmons to the Library Board 6. Appointment of Council Member Nelson to the Economic Development Authority MOTION: Council Member Nelson moved TO APPROVE THE CONSENT AGENDA. Council Member Reeves seconded the motion. MOTION PASSED 5-0. REGULAR AGENDA ITEM 9: SAVONA RESIDENTIAL SUBDIVISION (LENNAR) PRELIMINARY PLAT Planning director Klatt presented the preliminary plat application for the 310 residential unit Savona subdivision by Lennar. It will be a 4-5 phase development over several years. Consists of 113 acres located on land west of Keats Avenue. It will include 188 single family lots and 122 multi-family units. It will also include an east-west minor collector road from Keats Ave. Mr. Klatt reported that the preliminary plat is Comp Plan compliant and consistent with zoning regulations. Noted one staff demand was to maintain the 100 foot buffer from Stonegate. Mr. Klatt summarized the Planning Commission and staff reports and comments. It passed the Planning Commission on a 3-2 vote. It was noted that the “No” votes were concerned about the adequacy of park land. They did not think that the cash in lieu of land dedication was sufficient. Mr. Klatt highlighted the conditions of approval. Comments include statement from Dale properties stating they are willing to work with developer on street connections. Also included are comments on the preliminary park area. Included are comments from Amaris homes requesting realignment of 5th Street. Mr. Klatt reported that staff’s recommendation is to approve the plat with the 28 conditions of approval. The council then discussed the various conditions. Council Member Nelson asked about the trail system around the “exception” area. Mr. Klatt responded that it does connect to Stonegate Park. Mr. Nelson also asked about Condition #9 (landscape plan). He wanted to know if an independent forester consultation is required. Mr. Klatt responded in the affirmative. Council Member Smith stated it has been done all the other developments and that it is a very common practice. Council Member Bloyer asked about Condition #5 regarding the placement of the trail. Klatt explained that the Planning Commission’s suggestion was to have it closer to the new lots as opposed to the pre-existing neighborhood. Mayor Pearson stated that he believed the “bottom 1/3” language was too rigid and possibly onerous. Mr. Bloyer sought clarification on Condition #14. It was explained that because some details are still being determined, it was recommended that it be a condition. Mr. Bloyer also questioned LAKE ELMO CITY COUNCIL MINUTES August 06, 2013 Page 3 of 8 Condition #13 involving the Wetland Conservation Act and water shed districts and wondered if it was necessary. Mr. Klatt stated it was necessary. Council Member Reeves asked about the alignment of 5th Street. Mr. Klatt stated that the City is leaving it up to the private property owners to come up with a solution. The city does not want to get involved in the private transaction. City Administrator Zuleger stated that the City does have planned meetings coming up with the property owners. Mayor Pearson asked about streets A and B and their alignment. It was explained that staff wanted it changed a little to facilitate movement, but the Planning Commission wants it more as a traffic calming feature. City Engineer Griffin explained the transportation needs further work. He stated it was actually his suggestion to realign it, and that according to studies, intersections are poor traffic “calmers”. The curving of the streets can calm traffic. Ms. Smith expressed her disagreement with the studies based on her experience in her neighborhood. Mr. Nelson asked about Condition #10 regarding sidewalks. Mr. Klatt explained that they are on both sides in the multi-family areas due to more people are expected to use them. Mr. Pearson asked about power line easements. Klatt explained that there are easements on parts and that those areas cannot be used for the parkland dedication. Ms. Smith asked about Condition #27 (reusing trees). Klatt explained that the developer is being asked to reuse trees where they can. Joe Jablonski from Lennar addressed the council. He thanked staff for their hard work. He also stated that the comments and conditions do not concern Lennar at this point. Mr. Pearson asked about the A/E streets’ alignment. Mr. Joblonski stated that their intention was to prevent a drag strip. Mr. Reeves acknowledged the work the Planning Commission has done and that stated he appreciated the vigorous debate the Planning Commission had over the street alignment item. The trail buffer was discussed. It was suggested that the language be changed to “encouraged to” vs. “must”. Mr. Klatt stated that Council would have another review at the Final Plat stage. At this point the Council is setting their expectations. Ultimately, it is up to council. Ms. Smith stated her preference to leave it as is for now and let any. MOTION: Mayor Pearson moved TO AMEND SMITH’S MOTION BY AMENDING CONDITION NO. 5 TO REPLACE “MUST BE LOCATED” WITH “IS ENCOURAGED TO BE LOCATED.” Council Member Smith seconded the motion. MOTION PASSED 5-0. Mr. Nelson brought up his reluctance to require the tree consultation. It is his opinion that the tree ordinance should be enough. Ms. Smith disagreed that it is a penalty. It is reasonable in her opinion. This has been a standard practice and requirement. Mr. Reeves asked Mr. Klatt if the tree ordinance addresses landscaping. Mr. Klatt stated it does not. Mr. Klatt explained that the landscaping ordinance and tree ordinance and this plat all come together to achieve the desired requirements. Mr. Nelson said that the ordinances should be amended instead to require the forester approval. The City is setting precedent with this development. Mr. Bloyer said he is in agreement. He wants to know the long term economic consequences of these requirements. Mr. Klatt said that the main LAKE ELMO CITY COUNCIL MINUTES August 06, 2013 Page 4 of 8 purpose is to notify the developers that the City will require an independent consultation. The City does not have internal resources. Ms. Smith said there have been times when the wrong vegetation has been put in and this Condition would address that. MOTION: Council Member Smith moved TO APPROVE RESOLUTION 2013-64, APPROVING THE SAVONA PRELIMINARY PLAT WITH 28 CONDITIONS OF APPROVAL AS AMENDED. Mayor Pearson seconded the motion. MOTION PASSED 5-0. ITEM 10: LAKE ELMO AVE. INFRASTRUCTURE IMPROVEMENTS: I-94 TO 30TH ST. – ACCEPT BIDS AND AWARD CONTRACT; RES. 2013-59 City Engineer Griffin explained the Lake Elmo Ave. Infrastructure project. The City received 4 bids ranging from $3.46-3.96 million. The low bid was Minger Construction. Mr. Griffin stated that staff has good history working with them. The bids were higher than initial estimate, but the 10% built-in post-design contingency covers the difference. It still is under budget. This project also includes the $1 million MNDEED grant. Construction is expected to start in early September 2013. Substantial completion date is estimated at December 20, 2013; final completion is expected to be June 2014. Council Member Nelson asked about the bonding amount. Finance Director Bendel stated it is $3.3 million. Mayor Pearson asked about performance contracts. Mr. Griffin said that the standard bond agreement is used. Council Member Reeves asked about the low vs. responsible bidder. Mr. Griffin explained how “responsible” is determined. Because of the technical specs, it allows the bids to be very comparable “apples to apples.” State statutes also dictate how bids should be awarded. In most cases, the low bid must be awarded. There are limited circumstances that allow an entity to skip the low bid. Mr. Reeves asked if Minger has done another similar project recently. Mr. Griffin said they just did a similar project in Victoria, MN. Council Member Bloyer stated that after seeing the data and reports, he is proud to vote on this to bring Lake Elmo forward. MOTION: Council Member Smith moved TO APPROVE RESOLUTION 2013-59, ACCEPTING THE BIDS AND AWARDING A CONTRACT TO MINGER CONSTRUCTION, INC., IN THE AMOUNT OF $3,463,201.60, FOR THE LAKE ELMO AVENUE SEWER INFRASTRUCTURE IMPROVEMENTS: I-94 TO 30TH STREET. Mayor Pearson seconded the motion. MOTION PASSED 5-0. ITEM 11: WELL NO. 4 CONNECTING WATERMAIN – AUTHORIZE THE PREPARATION OF A FEASIBILITY REPORT; RES. 2013-60 City Engineer Griffin explained the Well No. 4 Connecting Watermain Project. Staff is requesting that Council authorize a feasibility study. Study has $3900 cost estimate. MOTION: Council Member Nelson moved TO AMEND PEARSON’S MOTION TO ADD “NOT TO EXCEED $3,900 TO THE RECOMMENDED MOTION.” Council Member Bloyer seconded the motion and subsequently withdrew his second. MOTION FAILED FOR LACK OF SECOND. The consequences of limiting the amount if costs do exceed were discussed. Mr. Griffin explained that the Council would need to have re-approve more funds. Council Member Bloyer withdrew his second after the discussion. LAKE ELMO CITY COUNCIL MINUTES August 06, 2013 Page 5 of 8 MOTION: Council Member Reeves moved TO AMEND PEARSON’S MOTION TO ADD “NOT TO EXCEED $3,900 UNLESS APPROVED BY THE CITY ADMINISTRATOR” TO THE RECOMMENDED MOTION.” Council Member Nelson seconded the motion. MOTION PASSED 5-0. MOTION: Mayor Pearson moved TO APPROVE RESOLUTION NO. 2013-60, ORDERING PREPARATION OF A FEASIBILITY REPORT FOR THE WELL NO. 4 CONNECTING WATERMAIN IMPROVEMENTS NOT TO EXCEED $3,900 UNLESS APPROVED BY THE CITY ADMINISTRATOR. Council Member Bloyer seconded the motion. MOTION PASSED 5-0. ITEM 12: PUMPHOUSE NO. 4 AND CONNECTING WATERMAIN IMPROVEMENTS – AUTHORIZE PREPARATION OF PLANS AND SPECIFICATIONS AND APPROVE ENGINEERING DESIGN AND CONSTRUCTION SUPPORT SERVICES CONTRACT; RES. 2013-61 City Engineer Griffin explained the Well No. 4 Pumphouse project. Three bids were received. There was a wide range of bids. Bolton & Menk was the low bid at $81,869. Engineering verified the bids and recommends awarding the project to Bolton & Menk. Council Member Reeves asked for clarification on what “P&S” was. Mr. Griffin explained that it is “Plans and Specifications.” MOTION: Council Member Smith moved TO APPROVE RESOLUTION NO. 2013-61, ORDERING PREPARATION OF THE PLANS AND SPECIFICATIONS FOR THE PUMPHOUSE NO. 4 AND CONNECTING WATERMAIN IMPROVEMENTS; AND AWARDING AN ENGINEERING DESIGN AND CONSTRUCTION SUPPORT SERVICES CONTRACT AS RECOMMENDED BY THE CITY ENGINEER. Council Member Reeves seconded the motion. MOTION PASSED 5-0. ITEM 13: INWOOD BOOSTER STATION AND TRUNK WATERMAIN IMPROVEMENTS – AUTHORIZE THE PREPARATION OF A FEASIBILITY REPORT; RES. 2013-62 City Engineer Griffin gave an overview of the project. This is for the Inwood Avenue booster station. A major question if whether or not to include nearby neighborhoods. One option is to include Parkwood Estates and pick up 32 properties. Simply running down Inwood and skipping Parkview Estates would be wasteful. Staff does not recommend including all the adjacent properties at this time, but instead do them later as independent projects. City Administrator Zuleger noted that this area uses GAC (granular activated carbon) filter systems due to water quality issues. Council Member Smith concurred and stated that many of those homes want water. One goal is to connect to Eagle Point Business Park. The route of the watermain is not exactly known at this time, but there are multiple options to connect. Mr. Zuleger said the City is in weekly conversations with those nearby property owners/developers. A friendly amendment was offered to add “not to exceed $6,700 unless approved by City Administrator” to the motion. MOTION: Council Member Reeves moved TO APPROVE RESOLUTION NO. 2013-62, ORDERING PREPARATION OF A FEASIBILITY REPORT FOR THE INWOOD BOOSTER STATION AND TRUNK WATERMAIN IMPROVEMENTS NOT TO EXCEED $3,900 UNLESS APPROVED BY THE CITY ADMINISTRATOR. Council Member Smith seconded the motion. MOTION PASSED 5-0. LAKE ELMO CITY COUNCIL MINUTES August 06, 2013 Page 6 of 8 ITEM 14: PRESENTATION OF FINANCING PLAN OF G.O. BONDS, SERIES 2013A; APPROVAL OF THE ISSUANCE OF G.O. BONDS, SERIES 2013A; RES. Finance Director Bendel introduced Paul Donna from Northland Securities. He explained the bonding process. In order to fund various infrastructure projects in 2013 (Keats MSA Street and Trunk Watermain Improvements, Production Well #4 and connecting Watermain, Lake Elmo Avenue Sewer Infrastructure Improvements and the Section 34 Water and Sewer Utility Extension), G.O. Bond funding will be necessary. There is currently a large demand for municipal bonds. Property tax revenue will not be used to pay debt, however, the City will still able to use taxes if the revenue is short. Hoping to price bonds in mid-September. Council Member Nelson asked about the prepayment option. There is no penalty during the allowed time. Council Member Reeves also asked about the accrued interest and if it was due at the prepayment. It will be due at the call date. Depending on when the prepayment takes place, there may be some accrued interest. MOTION: Council Member Smith moved TO RESOLUTION NO. 2013-063, AUTHORIZING THE ISSUANCE OF G.O. BONDS, SERIES 2013A IN THE AMOUNT OF $5,725,000. Council Member Reeves seconded the motion. MOTION PASSED 5-0. ITEM 15: OLSON LAKE TRAIL SANITARY SEWER EXTENSION – DISCUSSION AND CONSIDERATION OF PROJECT ALTERNATIVES Mayor Pearson asked if postponing this item was an option. City Engineer Griffin said that because of the hearing requirements it would have to be postponed to September 3. Mr. Griffin explained the options and gave a recap of the project. It is a joint project with the City of Oakdale. Lake Elmo took lead at the feasibility stage. Oakdale did the design, and bids came in higher than expected. The question now is how to proceed with high bids. Mr. Griffin explained the four options presented and the pros and cons of each. It was explained that the bids were high because of how small the project was. The first phase only involves seven properties. The four options are: 1. Award the Contract to the lowest responsible bidder and absorb additional costs funded through the Sewer Enterprise Fund. 2. Rebid the project as an “add alternate” to the Section 34 Water and Sewer Project. 3. Reject all bids and wait to complete Phase 1 and Phase 2 together when the County resurfaces Olson Lake Trail (in 2015 or 2016). 4. Rehear the project and consider raising the assessment amount levied against the benefitting property owners to cover the additional construction costs. One issue is asking contractors to hold bids past the 30/60 days. The deadline is 8/13. Mr. Griffin explained the timing with Lake Elmo and Oakdale Council decisions. Mr. Pearson asked about the risk of not deciding. It was explained that the risk is that the project could unravel. Mr. Pearson stated he is in favor of rehearing (option #4). Council Member Smith clarified the risks with the re-hearing option. She does not think that the City should risk another hearing and having the project unravel. Council Member Bloyer clarified the dates again and confirmed that the contractor will hold the bid. City Administrator Zuleger noted that Oakdale will be going ahead with the project regardless for their two properties. They are planning on paying the difference. Their mature sewer system helps pay for it. Mr. Zuleger also noted that the new price of $25,000 is about the cost of a new septic LAKE ELMO CITY COUNCIL MINUTES August 06, 2013 Page 7 of 8 system. He further noted that a new system would have to be a mound system. He also explained the environmental benefits of city sewer vis-à-vis the lakes. Council Member Reeves asked about the length of the assessment. The assessment would be over 15 years. Mr. Reeves also asked if it was explained at the previous hearing that the estimated figure could go higher. Mr. Griffin stated that the figure can be lowered after the hearing, but not raised. Ms. Smith again stated she was uncomfortable with a rehearing. Project Phase II and the differing costs and payments were discussed. Mayor Pearson noted that this is also setting a precedent. He again expressed his preference for a rehearing. The project’s scope was discussed. Mr. Reeves asked about the financial impact. It was explained that funds would come out of the sewer fund. Roughly $5,000 would be left. If more emergencies occurred, additional funds would come out of the Contingency Fund and a General Fund loan. MOTION: Mayor Pearson moved TO APPROVE OPTION #4 (DIRECT STAFF TO TAKE THE FOLLOWING ACTIONS REGARDING THE OLSON LAKE TRAIL SANITARY SEWER EXTENSION PROJECT: REHEAR THE PROJECT AND CONSIDER RAISING THE ASSESSMENT AMOUNT LEVIED AGAINST THE BENEFITTING PROPERTY OWNERS TO COVER THE ADDITIONAL CONSTRUCTION COSTS). Council Member Nelson seconded the motion. MOTION FAILED 2-3 (SMITH, BLOYER, & REEVES – NAY). Mr. Reeves said he has heard that the environmental quality of the lakes is serious. He is concerned with doing anything to delay that. He wants to be consistent with their decisions. He also wants to maintain the Oakdale relationship. Pearson agrees with the environmental concerns, but he has heard other instances of the high bids. Ms. Smith wants to show the water quality is important. Mr. Pearson agreed that water quality is important. Mr. Nelson also agrees with environmental quality, but he wants the 5 residents affected to hear the new price. He does not want to set precedent of kicking in $7,000 each time a project is underestimated. Finance Director Bendel also stated that the terms could be extended beyond the 15yrs. Mr. Reeves asked if rehearing is held, can the city go to something other than $25,600. Mr. Griffin said yes and noted that after the hearing, the City can lower number, but it cannot be raised. Ms. Smith again warned that the rehearing could be contentious. She wants it to be equitable with Phase II. Mr. Nelson stated that he believes it would behoove council to hear from the residents. He is concerned with protecting the taxpayer dollars. Mr. Reeves sought clarification of the impact on Oakdale. Mr. Zuleger stated that as long as the project goes forward Oakdale is good. MOTION: Council Member Smith moved TO APPROVE OPTION #1 (DIRECT STAFF TO TAKE THE FOLLOWING ACTIONS REGARDING THE OLSON LAKE TRAIL SANITARY SEWER EXTENSION PROJECT: AWARD THE CONTRACT TO THE LOWEST RESPONSIBLE BIDDER AND ABSORB ADDITIONAL COSTS FUNDED THROUGH THE SEWER ENTERPRISE FUND. Council Member Reeves seconded the motion. MOTION PASSED 3-2 (PEARSON & NELSON – NAY) After the vote, Susan Henderson addressed the Council as one of the affected residents. When the project was initially proposed, she thought it sounded good. She noted a Star Tribune article on construction costs being high right now. Perhaps the high costs may be a temporary problem. She is concerned about fair treatment from the City of Oakdale. She does not want to be treated as a second class sewer customer. LAKE ELMO CITY COUNCIL MINUTES August 06, 2013 Page 8 of 8 Mr. Zuleger said residents will be treated fair. It was explained that price indexing is typical of cross community projects such as these. Mayor Pearson said he believed the decision was probably the right one despite him being on the losing end. ITEM 16: CONSIDER PLANNING COMMISSION APPOINTMENT Mayor Pearson stated Jill Lundgren was well received during interview. There was no discussion. MOTION: Council Member Smith moved TO APPOINT JILL LUNDGREN OF 8282 HIDDEN BAY COURT NORTH AS 1ST ALTERNATE ON THE LAKE ELMO PLANNING COMMISSION, EFFECTIVE IMMEDIATELY. Council Member Bloyer seconded the motion. MOTION PASSED 5-0 ITEM 17: CONSIDER HIRING REPRESENTATION FROM A LOBBYING FIRM FOR A $2.6M STATE BONDING REQUEST MOTION: Mayor Pearson moved TO POSTPONE ITEM 17 TO A LATER COUNCIL MEETING. Council Member Reeves seconded the motion. MOTION PASSED 5-0 MOTION: Mayor Pearson moved TO MOVE ITEM 18 BEFORE THE COUNCIL AND STAFF REPORTS. Council Member Reeves seconded the motion. MOTION PASSED 5-0 MOTION: Council Member Smith 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. Council Member Bloyer seconded the motion. MOTION PASSED 5-0. Meeting adjourned to executive session at 9:33 P.M. Council Member Smith left at 10:00 P.M. MOTION: Council Member Nelson moved TO RECONVENE OPEN MEETING. Council Member Reeves seconded the motion. MOTION PASSED 4-0. Open Meeting reconvened at 10:29 P.M. MOTION: Council Member Nelson moved TO DIRECT STAFF TO IMPLEMENT A TOLLING AGREEMENT WITH 3M REGARDING OUTSTANDING GROUNDWATER CONTAMINATION LITIGATION. Council Member Reeves seconded the motion. MOTION PASSED 4-0. Mayor Pearson noted that Council Member Smith expressed her support for agreement. SUMMARY REPORTS AND ANNOUNCEMENTS No reports given Mayor Pearson adjourned the meeting at 10:29 P.M. LAKE ELMO CITY COUNCIL _______________________________________ ATTEST: Mike Pearson, Mayor ______________________________________ Adam R. Bell, City Clerk