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HomeMy WebLinkAbout06-03-2014 CCMLAKE ELMO CITY COUNCIL MINUTES JUNE 3, 2014 Page 1 of 7 CITY OF LAKE ELMO CITY COUNCIL MINUTES JUNE 3, 2014 Mayor Pearson called the meeting to order at 7:00 pm. PRESENT: Mayor Mike Pearson and Council Members Wally Nelson, Anne Smith, Mike Reeves and Justin Bloyer. Staff present: City Administrator Zuleger, City Attorney Snyder, Community Development Director Klatt, City Engineer Griffin, Finance Director Bendel, City Clerk Bell, Building Official Chase, and Assistant City Engineer Stempski.. PLEDGE OF ALLIGENCE APPROVAL OF AGENDA MOTION: Council Member Smith moved TO APPROVE THE JUNE 3, 2014 CITY COUNCIL AGENDA AS PRESENTED. Council Member Bloyer seconded the motion. MOTION PASSED 5-0. ITEM 1: ACCEPT MINUTES THE APRIL 23, 2014 SPECIAL CITY COUNCIL MEETING MINUTES WERE APPROVED AS PRESENTED BY CONSENSUS OF THE CITY COUNCIL. THE MAY 20, 2014 CITY COUNCIL MINUTES WERE APPROVED AS PRESENTED BY CONSENSUS OF THE CITY COUNCIL. COUNCIL REPORTS: Mayor Pearson: no report Council Member Smith: no report Council Member Nelson: no report Council Member Bloyer: wants to apologize to Lake Olson and Demontreville residents for vote on high water mark. Council Member Reeves: no report PUBLIC COMMENTS Library Director Orsted reported that the library is working on keeping young people reading during the summer while school is out. The Medallion Hunt begins on Monday, June 9, 2014. Daily clues will be released at 10 am until medallion is found. The winner receives annual pass to the Park Reserve. American Red Cross is doing blood drive in July. She explained some of the other summer events. Library hours were described. Open daily, Monday through Saturday, at 10 am. Monday and Wednesday open until 5 pm; Tuesday and Thursday open until 8 pm; Friday and Saturday open until 2 pm. Council Member Smith thanked Linda for all the work she and the board have done to make the library a success. PRESENTATIONS – 2014 STATE BONDING TEAM RECOGNITION Mayor Pearson gave brief overview of the efforts to secure state bonding funds at the MN Legislature. City Administrator Zuleger acknowledged that Rep. Joanne Ward was not able to make it. He introduced Representative Kathy Lohmer and Senators Karin Housley and Susan Kent and recognized all their work in helping to successfully obtain $3.5 Million in state bonding for Lake Elmo water infrastructure. Mr. Zuleger also acknowledged the assistance provided by lobbyist James Clark of Messerli & Kramer and Deputy Clerk Beckie Gumatz. Senator Kent of State Senate District 53 said it was an honor to work on this effort. She commended the team on all the hard work. It is important to entire east metro. Senator Housley of State Senate district 39 thanked everyone for coming down to the legislature and working as a team. Representative Lohmer thanked the team and said Lake Elmo did an outstanding job going to bat for the community. She said Mr. Zuleger is very dedicated to the success. She was happy to be a part of it. LAKE ELMO CITY COUNCIL MINUTES JUNE 3, 2014 Page 2 of 7 FINANCE CONSENT AGENDA 2. Approve Payment of Disbursements and Payroll in the amount of $397,379.72 3. Well No. 4 Connecting Watermain Improvements – Pay Request No. 2 4. Pumphouse No. 4 Improvements – Pay Request No. 1 MOTION: Council Member Nelson moved TO APPROVE THE FINANCE CONSENT AGENDA AS PRESENTED. Council Member Bloyer seconded the motion. MOTION PASSED 5-0. OTHER CONSENT AGENDA MOTION: Council Member Bloyer moved TO PULL ITEM 10 FOR DISCUSSION. Council Member Reeves seconded the motion. MOTION PASSED 5-0. 5. Wedding Ordinance 08-107 Summary Publication; Res. No. 2014-34 6. Perfecting Comp Plan Amendment; Res. No. 2014-35 7. Sign Retroreflectivity Policy 8. Accessory Building Forward of Primary Structure – 11991 30th Street North; Res. No. 2014-36 9. 39th Street N: Street & Sanitary Sewer Improvements – Order Plans and Specifications. Res. No. 2014-37 10. Metropolitan Council MOU Termination MOTION: Council Member Smith moved TO APPROVE THE OTHER CONSENT AGENDA AS AMENDED. Council Member Nelson seconded the motion. MOTION PASSED 5-0. ITEM 10: METROPOLITAN COUNCIL MOU TERMINATION City Administrator Zuleger provided overview of the significance of the Metropolitan Council MOU termination. He explained that the City can now self-determine the growth and pace instead of being subject to contractual obligations. Elimination results in a drop of 3,500 population and affords 10 more years to reach target. Now growth is simply driven by forecast. There is a reduction from 8,700 households to 8,000. Council Member Reeves recounted his astonishment of learning about the Wastewater Inefficiency Fines when he joined the Planning Commission. Having the threat of these penalties eliminated is huge for residents. Council Member Bloyer thanked everyone for their hard work on the elimination. Council Member Smith stated the City always thought the MOU would go away. She agreed that this is a big deal for everyone who worked on this. Mr. Zuleger recognized the council members and staff who worked with the Met Council to get rid of this. MOTION: Council Member Smith moved TO APPROVE MET COUNCIL RESOLUTION NO. 2014-8. Council Member Reeves seconded the motion. MOTION PASSED 5-0. REGULAR AGENDA ITEM 11: ABATEMENT OF 8350 38TH ST. Building Official Chase provided overview of the nuisance situation for the property at 8350 38th Street. The property is a bank foreclosure, and staff has not been able to successfully contact or get response from the property owner. The location was further clarified for Council. Mr. Chase showed the Council pictures of the public nuisance present at the property, which includes debris consisting of trash, appliances, hazardous chemicals, etc. Council Member Bloyer asked about recovering staff time costs. Under the law, staff time is recoverable. MOTION: Council Member Reeves moved TO ENACT §96.11 AND §96.12 OF THE CITY OF LAKE ELMO CODE TO ABATE 8350 38TH STREET BASED ON THE DEFINITION OF NUISANCE IN § 96.01 OF THE CITY CODE. Council Member Nelson seconded the motion. Council Member Nelson reporting viewing the property with Mr. Chase. It is disgusting and needs abatement. Mayor Pearson recognized staff’s regular approach to work with owners, but this case definitely warrants this type of action. Mr. Chase thanked council for their support. Council Member Reeves thanked the residents for reporting the nuisance. LAKE ELMO CITY COUNCIL MINUTES JUNE 3, 2014 Page 3 of 7 Council Member Smith asked about city’s policy with foreclosures. Mr. Chase noted that banks are reluctant to act. Mr. Chase explained that staff continues to work with the current ordinances and policies, but will retool them to make them more efficient as we proceed. Mr. Nelson asked about cutting grass and assessing costs. Mr. Chase explained that historically we have not, but the City can. Typically staff goes to great lengths to work with residents depending on the circumstances. MOTION PASSED 5-0. ITEM 12: LAKE ELMO AVENUE TRUNK WATERMAIN IMPROVEMENTS – ACCEPT BIDS AND AWARD CONTRACT; RES. NO. 2014-38 City Engineer Griffin provided overview of project. Three bids were received. Staff recommends awarding the contract to low bidder GM Contracting. Council Member Smith asked why this project is being done now, when she does not believe it is in the right sequence. Mayor Pearson offered that the Lake Elmo Avenue watermain project is part of paying for infrastructure that has been installed. Parties are also interested in having water brought to area. The current bid is good and may not be as good at later date. City has secured commitments to prepay WACs from respective property owners. Ms. Smith expressed her desire that the project needs to fund itself. City Administrator Zuleger explained that three potential developments have been brought to city in that area. One property needs fire protection. Ms. Smith asked if City understands the numbers involved. Ms. Smith noted that the comprehensive plan and density will change, and it is premature to act without new data. Mr. Zuleger stated that staff has a plan to recalibrate the number with minor comp plan amendments. Council Member Bloyer asked for status with the securities. It was explained that the City has $1,105,000 in prepaid WACs, plus pending $150,000. This is over 50% of the total cost. Mr. Bloyer asked about the risk involved if bankruptcy occurs. City Attorney Snyder said that the commitments are as secure as they can be at this point in the process, but bankruptcy can always present a potential problem. Community Development Director Klatt explained that comp plan also includes water and sewer plans. For 10 years Lake Elmo has been playing catch-up in this type of planning. Staff does expect to modify the numbers in area as development occurs. Mr. Griffin explained that this is part of the long-term master plan for infrastructure. Eventually this will connect with the western pipe and those along I94 to create complete loop. Ms. Smith asked if it has to be done now. She is concerned about “biting off more than we can chew.” Mr. Griffin said that the proper time to do this project is when development requires it. Mr. Klatt stated that current staff is handling 8-10 proposed developments. Ms. Smith asked what potential future developments may be missed by approving these developments now. That premise is too speculative answer. Ms. Smith wanted to know why the City has been actively searching for waivers for development in area not in sequence. City Attorney Snyder explained that projects can be built differently. Some cities build infrastructure and wait for development. Some wait for developers to install the infrastructure. In the middle is the approach where cities work together with developers to put it in jointly. That continuum is a philosophical, political, policy decision difference for councils. Reasonable people can disagree on which approach to follow. Mr. Zuleger explained that this area was planned for the third phase of development. Staff has sought waivers to help pay for infrastructure due to development interest. Mr. Griffin explained that this project was originally planned in 2013 to be done in 2014. Council Member Reeves asked about current staff’s ability and flexibility to handle these projects. Mr. Zuleger said that staff is getting much better, but there have been unexpected projects that have added to workload. Council Member Bloyer asked engineers if they can handle this project or if it would reduce the ability to work on other projects that need to be handled. Mr. Griffin explained that Focus and design contractors are involved, but they can handle the workload. Mr. Zuleger noted that the Inwood project has been moved to 2015, so the projects do not overlap. Mr. Reeves asked that the financed be explained publicly. LAKE ELMO CITY COUNCIL MINUTES JUNE 3, 2014 Page 4 of 7 Ms. Smith asked about the funding itself and if there is a cost to the taxpayers. Mr. Griffin explained that water and sewer are self-sustaining so they are not on the backs of the taxpayers, subject to the financial assumptions being realized. The global system needs to fund itself as some projects will not work as well as others at all times. Finance Director Bendel explained the cash flow analysis. The Lake Elmo Avenue watermain project is $1.074 million short, but the global water system will cashflow for next 20 years. It was explained that the commitments were more solid than the timeline. Delaying the development will have a greater impact than specific development failures. Mr. Reeves reiterated that judging this project on its own is not most accurate way to look at it because the global water system will cashflow with or without this project. Mayor Pearson asked about commercial development and asked about the future water projects. Mr. Griffin said the future projects will happen with the growth. Mr. Bloyer asked about how much development would have to not happen to maintain cashflow. Mr. Nelson calculated that 75% build out maintains cashflow for 12-14 years and 70% cashflows for about 11 years. It was noted that the area between Lake Elmo Ave and Keats Ave have not been considered at all in commercial projections. There are also no commercial projections included in the Village either. Mr. Zuleger explained that at some point need to develop that area and balance the growth between residential and commercial. Mr. Reeves asked about status of bonding bill at the time the previous email. It was explained that the City was not in the bill at the time. Mayor Pearson asked why we cannot bring water from west. It was explained that the City would have to pay for the whole thing if done now and future development will pay for it when that eventually happens. Mr. Zuleger reiterated that the $3.5 Million in bonding will free up Section 34 WACs for entire system. Holistically, the global system works. Council Member Nelson read letter from Lake Elmo Avenue resident Dan Raleigh, who supports the project. Dan Regan with Launch Properties spoke in support of project. He recently proposed commercial development on property that would receive water from this project. He explained that development requires infrastructure. He noted that the projections are only based on what is known now. In order to get return on investment, the investment needs to be made. There is already sewer there, but area now needs water to develop. Council Member Bloyer asked if Mr. Regan could install a well near the contaminated area. Mr. Griffin said that a well would be a risk and may work, but not a good option for multiple reasons. Mr. Regan explained that due to fire suppression needs, a well would not be feasible and would limit the commercial opportunities. His family has owned parcel for decades. Multiple plans have been brought to city to no avail. He recently bought a lot and is building a house in the city, so he also wants to be a neighbor and partner with the city. Council Member Smith expressed her desire that the land be developed differently than what has been proposed. Mr. Regan explained that demand has to drive development based on comp plan and zoning. At this time, there is not a demand for what Ms. Smith desires. She is concerned that Lake Elmo will miss out on something better. Mr. Reeves asked if business will come without water. The probability is low. MOTION: Council Member Reeves moved TO APPROVE RESOLUTION NO. 2014-38, ACCEPTING BIDS AND AWARDING A CONTRACT TO GM CONTRACTING INC., IN THE AMOUNT OF $2,015,687.39 FOR THE LAKE ELMO AVENUE TRUNK WATERMAIN IMPROVEMENTS. Council Member Nelson seconded the motion. Council Member Nelson noted that the City lost out on Cabela’s recently because there was no infrastructure in place. The finance team has spent lots of time developing the pro forma, and it is very conservative. In a year or two, the whole system may be healthy enough to lower water rates. There are 10 years of positive cash flow. State bonding funding of $3.5 million was a game changer. Property owners have been waiting for years for water. City has obtained commitments to reduce risk. Nothing more that we can do to eliminate risk. He wants to let the land owners do what they do best and develop as best they can. LAKE ELMO CITY COUNCIL MINUTES JUNE 3, 2014 Page 5 of 7 Council Member Reeves commended staff and finance committee on their work. He agreed that the state bonding success changed things. Lake Elmo Ave water was part of the bonding need. He is willing to take risk to make an investment. The assumptions are extremely conservative. Even with a 25% reduction, positive cash flow works out to 2024. Council Member Smith supports development and property owners. Residents she has interacted with want the development to look nice. She thinks the City should wait a year or two so the city does not end up accepting developments it doesn’t want. She thinks the City should slow down and take time to make sure we get the best developments. Mayor Pearson noted that the City has overcommitted in past, but this is a remedy. He stated that the City owes it to property owners who have been restricted by lack of infrastructure in the past. He is supportive of the project. Mr. Reeves hopes that the council supports its decisions as a body regardless of how it votes. Council Member Bloyer reminded everyone that the property owners should be able to use the property as they see fit if it is an allowed use. He is willing to make investment to make thing better for future residents. Ms. Smith reiterated that her concern is the timing, not the development itself. MOTION PASSED 4-1 (Smith – Nay). Mayor Pearson Recessed the meeting at 9:02 pm. The meeting was reconvened 9:12 pm. ITEM 13: 2014 CAPITAL IMPROVEMENT FINANCE PLAN; RES. NO. 2014-39 Finance Director Bendel introduced Tammy Omdal from Northland Securities. She provided an overview of the upcoming municipal bond sale of $6.2 million. Sale date is June 17, 2014. Anticipated interest rates are 2.3%. Ms. Omdal will be back on June 17th to present the bond bids. Bonds will be sold competitively so banks or underwriters will be buyers. Council Member Reeves asked about the threat to the enterprise fund threshold for development delay. Approximately $200,000 will be needed annually to pay debt. The impact on the City’s credit rating was described. Bond rating call went well. The policies that the city has put in place are positive. The rating will be available next week. MOTION: Mayor Pearson moved TO APPROVE RESOLUTION 2014-39 AUTHORIZING THE ISSUANCE AND SALE OF GENERAL OBLIGATION BONDS, SERIES 2014A IN THE AMOUNT OF $6,235,000. Council Member Nelson seconded the motion. MOTION PASSED 5-0. ITEM 14: SHORELAND AMENDMENT ORDINANCE; ORD. 08-111, RES. NO. 2014-40 Community Development Director Klatt explained the proposed ordinance amendment. Council Member Smith left room at 9:20 pm. Primary issue is to modernize the code and bring code in line with new urban districts. Staff has created a model to balance the protection of surface waters in the community while still accommodating sewered growth in targeted shoreland areas using dedicated riparian buffer areas. Also proposed is an updated definition of overall height for water oriented accessory structures being “enclosed.” It was noted that the DNR commented after the Planning Commission recommended approval. City Attorney Snyder explained that the DNR can challenge development that is based on ordinances that they do not approve of. They do not often do that. The solicitation for comments was proper, and due to the delay in receiving the DNR comments Counsel does not recommend giving any deference to the comments at this point. Council Member Smith returned at 9:25 pm. MOTION: Council Member Reeves moved TO APPROVE ORDINANCE 08-111 TO ADOPT UPDATED SHORELAND PROVISIONS TO INCORPORATE STANDARDS AND BEST PRACTICES FOR SEWERED PROPERTIES IN SHORELAND AREAS. Council Member Bloyer seconded the motion. MOTION PASSED 5-0. LAKE ELMO CITY COUNCIL MINUTES JUNE 3, 2014 Page 6 of 7 MOTION: Mayor Pearson moved TO APPROVE RESOLUTION NO. 2014-40, AUTHORIZING SUMMARY PUBLICATION OF ORDINANCE 08-111. Council Member Bloyer seconded the motion. MOTION PASSED 5-0. ITEM 15: GARAGE ORDINANCE; ORD. 08-112 Community Development Director Klatt explained the reason this is amendment is being proposed. Staff has learned that the current ordinance is extremely restrictive for proposed developments. Staff originally proposed a 75% limitation, but the Planning Commission recommended 60%. Mr. Bloyer expressed his discomfort with any type of restriction such as this. He asked why this only applies to urban districts. It was explained that our restriction is very unusual for sewered residential districts in other communities. Council Member Smith asked if lots could be widened in order to eliminate the issue as well. Council Member Nelson asked about concerns restricting certain types of homes. Mr. Klatt explained that townhomes and other types of homes could have a difficult time complying. Staff expects to have to address those types in the future. It was explained that the garage front setback requirement was also eliminated. Council Member Reeves asked about the threat of the risk of deterring builders and thence homebuyers. Staff confirmed that the revision of 60% satisfies the current builder proposals. Mr. Reeves wants Lake Elmo to be competitive. The Council discussed the builders’ desire for larger lots. Mr. Klatt explained that wetland areas and open space have impacted the lot sizes. It was explained again that this restriction only applies to developments in urban residential districts. MOTION: Mayor Pearson moved TO ADOPT ORDINANCE 08-112 AMENDING THE ZONING ORDINANCE BY REVISING THE REQUIREMENTS FOR ATTACHED GARAGES IN URBAN RESIDENTIAL DISTRICTS. Council Member Reeves seconded the motion. Council Member Bloyer expressed his belief that this is still too restrictive. It is better than what we currently have, but does not go far enough in his opinion. Council Member Nelson wants the builders to have flexibility, but this is too restrictive. He is concerned about non-single family homes. He wants variety and variation, but wants the market to dictate what should be built. Council discussed how to treat townhomes. Options would be to remove the limitation completely, allow greater percentage for townhomes, or exempt townhomes. Joe Joblonski from Lennar stated that 60% works for them right now, but it may not in the future or with other builders. Many custom builders and larger lots may want 4 car garages and the 60% may not work in that case. He would like to see the restriction removed all together; however, the 60% does work for Lennar right now. Mr. Joblonski showed an example of a façade of a home that meets the 60% limitation. Mayor Pearson asked when the ordinance came about. Mr. Klatt was not sure when or recall the specifics of how, but that it was part of design standards to avoid home façades dominated by garages. Mr. Nelson is okay with 60% for single-family detached homes and wants to support the Planning Commission but wants the townhome issue addressed. Mr. Zuleger urged prudence by making incremental changes to the code. Let the developers and Planning Commission work it out. He noted that staff has to update various code provision as we begin to deal with development. Staff expects to bring more revisions to Council as we go. Council further discussed how other communities don’t have any such restrictions and how to proceed. A friendly amendment was suggested of adding limiting language to single-family homes. Mayor Pearson and Council Member Nelson accepted friendly amendment. MOTION PASSED AS AMENDED 4-1 (Bloyer – nay). ITEM 16: ANNUAL PUBLIC MEETING TO APPROVE MS4 ANNUAL REPORT FOR MPCA SUBMITTAL LAKE ELMO CITY COUNCIL MINUTES JUNE 3, 2014 Page 7 of 7 Assistant City Engineer Stempski explained the implementation of the Storm Water Pollution Protection Plan Minimum Control Measures. There are 6 minimum control measures. 1) & 2): Public education, outreach & participation. 3) Illicit discharge detection and elimination; 4) Construction site storm water controls. There have been 29 violations this year. Building Official Chase has done great job enforcing erosion control in city; 5) Post-construction storm water management for development and redevelopment; 6) Pollution prevention/good housekeeping for municipal operations. Council Member Bloyer left room at 10:19 pm. Mr. Bloyer returned at 10:22 pm. City is under new MS4 permit for 2014. Mr. Stempski highlighted the 2014 work plan. Council Member Smith asked if process was available for water issues that residents experience. If the issue is a public issue, City will address it to determine if it is a public issue. Council Member Nelson asked if current staff can handle work involved. The approach the City takes is to see what other communities do that is acceptable to the MPCA and then model our policies after those accepted practices. It was explained that City may need to bring a consultant on board to conduct pond surveys. It was also explained that the storm water fees fund these activities. MOTION: Council Member Smith moved TO ACCEPT THE MUNICIPAL SEPARATE STORM SEWER SYSTEM (MS4) ANNUAL REPORT FOR 2013, AND AUTHORIZE STAFF TO SUBMIT THIS REPORT TO THE MPCA BY JUNE 30, 2014. Council Member Reeves seconded the motion. MOTION PASSED 5-0. STAFF REPORTS AND ANNOUNCEMENTS City Administrator Zuleger: noted upcoming Quality of Life workshop on June 10th; June 12th first of four neighborhood meetings; next edition of The Source will be published soon; garbage hauling going to 2 days a week- Monday & Thursday starting on July 14, 2014. City Attorney Snyder: no update Community Development Director Klatt: planning department summer intern Casey Reily has started and is doing well. City Engineer Griffin: taking bids on 2014 Street Improvements project; ahead of schedule on 39th St. project design. Plan to bring back to Council on June 17th. Finance Director Bendel: been working on cash flow revisions; Moody’s call; audit draft will be be presented on June 17th; 2015 budget kick-off with department heads. City Clerk Bell: continuing to coordinate election judges and prepare for fall election. Will be bringing list of judges to Council on 6/17 for approval; working on RFP for uniform rental and laundry services. Mayor Pearson adjourned meeting at 10:35 pm. LAKE ELMO CITY COUNCIL ATTEST: ______________________________ Mike Pearson, Mayor _______________________________ Adam R. Bell, City Clerk