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HomeMy WebLinkAbout06-17-2014 CCMLAKE ELMO CITY COUNCIL MINUTES JUNE 17, 2014 Page 1 of 6 CITY OF LAKE ELMO CITY COUNCIL MINUTES JUNE 17, 2014 Mayor Pearson called the meeting to order at 7:00 pm. PRESENT: Mayor Mike Pearson and Council Members Wally Nelson, and Mike Reeves Absent: Council Members Smith and Bloyer Staff present: City Administrator Zuleger, City Attorney Snyder, Community Development Director Klatt, City Engineer Griffin, Finance Director Bendel, and City Clerk Bell. PLEDGE OF ALLIGENCE APPROVAL OF AGENDA MOTION: Council Member Nelson moved TO APPROVE THE JUNE 17, 2014 CITY COUNCIL AGENDA AS PRESENTED. Council Member Reeves seconded the motion. MOTION PASSED 3-0. ITEM 1: ACCEPT MINUTES THE JUNE 3, 2014 CITY COUNCIL MINUTES WERE APPROVED AS PRESENTED BY CONSENSUS OF THE CITY COUNCIL. COUNCIL REPORTS: Mayor Pearson: attended neighborhood meeting held in Carriage Station; met with some local business to discuss infrastructure fees; met with some property owners on the lake levels. Council Member Reeves: met with some residents regarding the proposed Wildflower development; attended Parks Commission meeting and reported on the approved park improvements; Commission discussed the use of Park Land Dedication funds and how to spend it over the next 3-5 years. Council Member Nelson: met with some property owners on the lake levels; met with some residents regarding the proposed Wildflower development; attended neighborhood meeting held in Carriage Station. Parking solution for that park was discussed. FINANCE CONSENT AGENDA 2. Approve Payment of Disbursements and Payroll in the amount of $577,084.43 3. Accept Financial Report dated May 31, 2014 4. Accept Building Report dated May 31, 2014 5. Accept City Assessor Report dated May 31, 2014 6. Approval of Certificate for Municipal Entities and Municipal Bond Obligators 7. Request for Approval to Abate Street Assessments Levied in 2014; Resolution No. 2014-51 8. Section 34 Water and Sewer Utility Extension Improvements – Pay Request No. 5 9. Lake Elmo Sewer Infrastructure Improvements: I-94 to 30th Street – Change Order No. 5 10. Lake Elmo Sewer Infrastructure Improvements: I-94 to 30th Street – Pay Request No. 7 MOTION: Council Member Nelson moved TO APPROVE THE FINANCE CONSENT AGENDA AS PRESENTED. Council Member Reeves seconded the motion. MOTION PASSED 3-0. OTHER CONSENT AGENDA 11. Appointment of 2014 Election Judges; Resolution No. 2014-41 12. Council Workshop Date Change 13. Lateral Benefit Charge Ordinance Amendment; Ordinance 08-108 14. Assessment Policy; Resolution No. 2014-42 MOTION: Council Member Reeves moved TO APPROVE THE OTHER CONSENT AGENDA AS PRESENTED. Council Member Nelson seconded the motion. MOTION PASSED 3-0. REGULAR AGENDA LAKE ELMO CITY COUNCIL MINUTES JUNE 17, 2014 Page 2 of 6 ITEM 16: AUTHORIZATION FOR SALE OF $6,235,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2014A; RES. NO. 2014-44 Finance Director Bendel introduced Tammy Omdal from Northland Securities. Ms. Omdal provided overview of the bond sale. City received four bids. Low bid was from Piper Jaffrey at 2.61% true interest; Second lowest was from Baird at 2.67. Moody’s affirmed bond rating of Aa2. Standard & Poor’s upgraded City rating to AA+. Upgrade focused on financial planning. The fact that City has planned for debt was recognized in ratings. Northland recommends approval of sale at 2.61%. Council Member Reeves asked about what cash flow “best case scenario” was. It was explained that the best case described is realistic and conservative estimate and not best that could ever be. MOTION: Council Member Reeves moved TO APPROVE RESOLUTION NO. 2014-44, AWARDING THE SALE, PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE PAYMENT OF $6,235,000 GENERAL OBLIGATION BONDS, SERIES 2014A. Council Member Nelson seconded the motion. Council Member Reeves acknowledged Finance Committee and staff’s work on this. Mayor and Council Member Nelson also commended the job well done. MOTION PASSED 3-0. ITEM 17: 2013 COMPREHENSIVE ANNUAL FINANCIAL REPORT AND MANAGEMENT LETTERS PRESENTATION Finance Director Bendel introduced Jason Miller from Schafer, Smith & Associates. Mr. Miller provided summary of the financial report. City received an unqualified audit opinion. There were no Minnesota Legal Compliance exceptions in 2013. Undesignated general fund balance was 66% of 2013 expenditures. Bonds and certificates outstanding of $19,007,000 at 12/31/2013. Audit findings: limited ability to segregate internal controls due to size of City staff. This is common with cities the same size. Recommend that utility billing software be upgraded to improve efficiency. Council Member Nelson asked about DEED funding and the impact on the undesignated fund balance. If the $500K were put back in the fund, the balance would be closer to the previous 80-88%. MOTION: Mayor Pearson moved TO ACCEPT THE 2013 COMPREHENSIVE ANNUAL FINANCIAL REPORT AND MANAGEMENT LETTERS. Council Member Nelson seconded the motion. Council Member Reeves said the report is evidence that the City is fiscally responsible and looking out for the taxpayers and residents. Mr. Miller echoed those comments. MOTION PASSED 3-0. ITEM 18: 2014 BOND RATING REPORT – STANDARD & POOR’S/MOODY’S City Administrator Zuleger provided overview of the two bond ratings. S&P = AA+/Stable (upgraded). Moody’s = Aa2 (sustained). Council Member Nelson asked current equalized value. $1.3 bil. Significant value when you look at the population. Rating also looks at school district and county. Washington County is Aaa. Stillwater ISD is Aa2. Council Member Reeves asked that the report be put online. Mr. Zuleger stated it would be. No formal action requested. ITEM 19: WILDFLOWER AT LAKE ELMO CONCEPT PLAN; RES. NO. 2014-45, RES. NO. 2014-46 Community Development Klatt provided overview of the proposed PUD concept plan. Mr. Klatt explained the staff and Planning Commission comments. Planning Commission recommended approval with 2 additional conditions. LAKE ELMO CITY COUNCIL MINUTES JUNE 17, 2014 Page 3 of 6 Council Member Nelson asked if the Comp Plan Amendment was approved, would Outlot P be removed from the conservation easement? Mr. Klatt explained that only the portion that is being modified. Bob Engstrom of Engstrom Real Estate Companies, presented the proposed Wildflower development. He noted the high competition in Lake Elmo and how he has to be unique. He is proposing healthy communities initiative and nature conservancy area. He described the courtyard home concept and proposed open spaces. Jerry Mazzara of Design Forum, further explained the courtyard concept and healthy communities initiative. Mr. Engstrom described the planned trails. Mayor Pearson asked about the conservancy area. Mr. Engstrom explained his hopes for how it would be managed. One option would be to have the City take it over after 3-5 years. Another is to have another conservancy group assume the management. Council Member Reeves asked if Mr. Engstrom expects to be able to accommodate the requested lesser impact on existing neighbors. Mr. Engstrom said that he hopes that the plan will have a positive impact on the City and neighbors. He is open to suggestions, but does not believe that the area in question is a substantial quantity. Mr. Nelson asked about the open space that is currently between the proposal and existing neighbors. Mr. Klatt and Mr. Mazzara explained the various distances for each respective lot. Mayor Pearson read the Mary Jean Dupuis’ (11676 Stillwater Blvd.) letter outlining her demands if the proposal is approved. Jim Ogren, the Fields of St. Croix II property committee chair, reported that FOSCII have reached an agreement. The proposed agreement and conditions was discussed. Mr. Klatt explained that the City does is not directly involved in the agreement between the parties and the treatment of the remaining outlots. City Attorney Snyder explained that staff will have a later opportunity to review and provide input on the future plat proposals. Neil Kreuger spoke in favor of Engstrom developments, but opposed the Comp Plan Amendment due to change in his open space views. He specifically is against the 12 lots located off of Lake Elmo Avenue. Richard Smith 11514 Stillwater Blvd., summarized the letter that he submitted to the city on June 16th. He is opposed to the Comp Plan Amendment. He asserted that three proposed lots directly abut his property. He stated his demands if the proposal is approved. Mr. Nelson asked about the current comp plan buffer. Mr. Klatt explained that there is no set number, but instead a suggested buffer. The previous set distances were removed to accommodate development realities. Bob Eichens 11674 Stillwater Blvd., is very proud of FOSCII as a development and neighbor. He acknowledged that community is developing. He appreciates the efforts Mr. Engstrom and staff have made to accommodate his requests. He stated his demands if the proposal is approved. MOTION: Council Member Nelson moved TO ADOPT RESOLUTION NO. 2014-045, APPROVING A PUD CONCEPT PLAN FOR WILDFLOWER AT LAKE ELMO. Council Member Reeves seconded the motion. MOTION PASSED 3-0. Council Member Reeves loves the proposed development plans and concept. He is in favor of moving this forward. He has concerns about the future Village development and respective buffers situation. He hopes that compromises can be made to meet all parties’ needs. LAKE ELMO CITY COUNCIL MINUTES JUNE 17, 2014 Page 4 of 6 Council Member Nelson has good personal relationship with Mr. Engstrom as a homeowner in The Fields of St. Croix development. He has two concerns. He wants prior to vote of Comp Plan Amendment, the agreement between FOSCII and Engstrom Companies completed. Amended his motion to Motion to amend #2 3-0 MOTION: Council Member Nelson moved TO AMEND HIS MOTION TO REQUIRE THAT PRIOR TO COUNCIL VOTE ON COMP PLAN AMENDMENT, THE AGREEMENT BETWEEN FOSCII AND RECO BE COMPLETED. Council Member Reeves seconded the motion. MOTION TO AMEND PASSED 3-0. Council Member Nelson believes there are some additional screening concerns. MOTION: Council Member Nelson moved TO FURTHER AMEND THE ORIGINAL MOTION TO REQUIRE THAT PRIOR TO PRELIMINARY PLAT, THE THREE RESPECTIVE PROPERTY OWNERS AND DEVELOPER MAKE GOOD FAITH EFFORT TO REACH AGREEMENT ON ADDITIONAL SCREENING, AND THAT PRIOR TO BUILDING PERMITS BEING ISSUED, THAT ADDITIONAL SCREENING BE IMPLEMENTED. Council Member Reeves seconded the motion. Council Member Reeves PROPOSED FRIENDLY AMENDMENT TO REQUIRE THE BUFFERING ISSUE RESOLUTION BE ADDRESSED PRIOR TO VOTING ON COMP PLAN AMENDMENT. Council Member Nelson accepted friendly amendment. MOTION TO AMEND #2 PASSED 3-0. MOTION: Mayor Pearson moved TO FURTHER AMEND THE ORIGINAL MOTION TO SPECIFY THE PUD CONCEPT PLAN IS APPROVED CONTINGENT ON THE CITY COUNCIL APPROVING THE COMP PLAN AMENDMENT AS SPECIFIED IN THE STAFF REPORT. Council Member Reeves seconded the motion. MOTION PASSED 3-0. Mayor Pearson expressed his concern about the conservancy management issues. He would like a more solid plan brought back for future management without the City being liable. MAIN MOTION PASSED AS AMENDED 3-0. ITEM 20: 2014 STREET IMPROVEMENTS – ACCEPT BIDS AND AWARD CONTRACT; RES. NO. 2014-47 City Engineer Griffin explained the bids that the City received. Staff recommend awarding the bid to Hardrives, Inc for the contract amount is $1,469,015.70. It was pointed out that there were three alternate bids received to use a different oil in the pavement for each neighborhood area. The oil improves the bituminous mixture by decreasing voids and the unit cost increase was minor. Staff also indicated that they are recommending a change for 20th Street to include a Mill and Overlay rather than the proposed Microsurface included in the current bid. For a little more money, the City can use an established and less risky option. A change order would be brought back to Council at next meeting. Council Member Nelson asked about difference in life of the roads for each option. Mr. Griffin explained that the life would possibly be the same, but the condition of the road could be better. The overlay could provide a few more years before having to replace the road. MOTION: Council Member Nelson moved TO APPROVE RESOLUTION NO. 2014-47, ACCEPTING BIDS AND AWARDING A CONTRACT TO HARDRIVES, INC., IN THE ADJUSTED TOTAL BASE BID AMOUNT OF $1,469,015.70 FOR THE 2014 STREET IMPROVEMENTS. Council Member Reeves seconded the motion. MOTION PASSED 3-0. ITEM 21: VILLAGE EAST TRUNK SANITARY SEWER: UP RAIL TO TH 5 – APPROVE FEASIBILITY REPORT, CALL PUBLIC IMPROVEMENT HEARING AND APPROVE PLANS AND SPECIFICATIONS; RES. NO. 2014-48 City Administrator Zuleger noted that this project is being fast tracked for development. It is more efficient and can save City money. City Engineer Griffin explained the background of the project and the schedule. LAKE ELMO CITY COUNCIL MINUTES JUNE 17, 2014 Page 5 of 6 The project brings sewer to the undeveloped areas of the Village. Total estimated project cost is $288,000. Mr. Griffin explained the estimated preliminary assessments. It was confirmed that if City does not obtain 100% waivers, the City can still assess the properties. Council Member Reeves asked about the oversize costs. It was explained that the figures are within estimates and actually lower due to costs coming in lower. MOTION: Council Member Reeves moved TO ADOPT RESOLUTION NO. 2014-48 FOR THE VILLAGE EAST TRUNK SANITARY SEWER IMPROVEMENTS: TH 5 TO UP RAILROAD, THEREBY ORDERING FEASIBILITY REPORT, RECEIVING FEASIBILITY REPORT, CALLING HEARING ON IMPROVEMENT, APPROVE PLANS AND SPECIFICATIONS, AND INCORPORATE PLANS AND SPECIFICATIONS INTO 39TH STREET NORTH: STREET AND SANITARY IMPROVEMENTS. Council Member Nelson seconded the motion. MOTION PASSED 3-0. ITEM 22: 39TH STREET N: STREET & SANITARY SEWER IMPROVEMENTS – APPROVE PLANS AND SPECIFICATIONS; RES. NO. 2014-49 City Engineer Griffin provided summary of project. Project involved street and sewer improvements along 39th street. It will also allow the City to provide sanitary sewer to properties outside of Village with septic issues. Mr. Griffin explained the projected estimated project costs of $1,247,000 including the additional costs that have developed since the initial report. Mr. Griffin explained the project schedule. MOTION: Council Member Reeves moved TO APPROVE RESOLUTION NO. 2014-49, APPROVING THE PLANS AND SPECIFICATIONS AND ORDERING THE ADVERTISEMENT FOR BIDS FOR THE 39TH STREET NORTH: STREET AND SANITARY SEWER IMPROVEMENTS INCLUDING THE AD ALTERNATE BID PACKAGE FOR THE VILLAGE EAST TRUNK SANITARY SEWER IMPROVEMENTS: FROM TH 5 TO THE UP RAILROAD. Council Member Nelson seconded the motion. Council Member Nelson noted the three additional cost items. MOTION PASSED 3-0. Barb Ritchie 8938 37th Street N., formally requested that she is put on agenda next month to discuss the 2015 Street Improvements proposed in her neighborhood. She contended that many of the residents cannot afford the assessments. Council agreed to hold a public comment period at the July 1st meeting. ITEM 23: APPROVAL OF FUND TRANSFERS AND CLOSURES FOR 2013; RES. NO. 2014-50 Finance Director Bendel explained the several fund transfers and closures. MOTION: Mayor Pearson moved TO APPROVE RESOLUTION NO. 2014-50 TO CLOSE OUT INACTIVE FUNDS AND PROCESS A FUND TRANSFER OF $400,000 NEEDED TO MAKE THE ANNUAL INTERNAL LOAN REPAYMENTS FOR 2012 AND 2013. Council Member Nelson seconded the motion. MOTION PASSED 3-0. STAFF REPORTS AND ANNOUNCEMENTS City Administrator Zuleger: reported monitoring lake levels per ordinance. Clarified that there are two levels. One Olson/Demontreville, the Ordinary High Water Mark is set by the DNR. 929.3 feet. No wake level of 929.7 feet set by Council in 2011; working on obtaining lake Elmo Ave securities; On June 26 City will hold the Reid Park neighborhood meeting. City Attorney Snyder: working with staff on developer agreements and security measures; City received extensive 3M data practices request. Community Development Director Klatt: several plats being addressed at upcoming June 23 and June 30 Planning Commission meetings; held kick-off meeting with Village market study; preconstruction meeting for LAKE ELMO CITY COUNCIL MINUTES JUNE 17, 2014 Page 6 of 6 Savona. Presuming the few remaining items are completed over the next two weeks, construction can be expected soon after that. WAC/SACs and park dedications will be paid at this time. City Engineer Griffin: no report. Finance Director Bendel: completed audit; working on 2015 budget. City Clerk Bell: continuing to coordinate 2014 election. Mayor Pearson adjourned meeting at 9:52 pm. LAKE ELMO CITY COUNCIL ATTEST: ______________________________ Mike Pearson, Mayor _______________________________ Adam R. Bell, City Clerk