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Home My WebLink About2013-05-22 CC Minutes - Approved CITY OF CENTERVILLE CITY COUNCIL MEETING May 22, 2013 6:30 p.m. Pursuant to due call and notice thereof, the City of Centerville held their regularly scheduled meeting of May 22, 2013, at City Hall, 1880 Main Street. PRESENT: Mayor Tom Wilharber Council Member Ben Fehrenbacher Council Member Steve King Council Member D. Love Council Member Jeff Paar ABSENT: None STAFF: City Administrator Dallas Larson City Engineer Mark Statz Legal Counsel Kurt Glaser I. CALL TO ORDER Mayor Wilharber called the meeting to order at 6:30 p.m. II. PUBLIC HEARING(S) III. APPROVAL OF AGENDA Mayor Wilharber added Centerville Claims (Check #27989-27994), Massage Therapist License & Massage Establishment Lines – Ms. Krista Balmer Operating Within Schlavin Chiropractic and replacement pages for the Issuance & Pledging for Security associated with the Proposed Sale of $1,485,000 G.O. Improvement Bonds, Series 2013A. Motion by Council Member Paar, seconded by Council Member Love to approve the Set Agenda as presented with the above stated amendments All in favor. Motion passed unanimously. IV. APPROVAL OF MINUTES 1.May 8, 2013 City Council Meeting Minutes The Mayor provided Council Members with an opportunity to review draft meeting minutes. City of Centerville Council Meeting Minutes May 22, 2013 Motion by Council Member King, seconded by Council Member Fehrenbacher to approve the minutes of the May 8, 2013 City Council Meeting, as presented. All in favor. Motion passed unanimously. 2.May 8, 2013 City Council Work Session Meeting Minutes The Mayor provided Council Members with an opportunity to review the draft work session minutes. Motion by Council Member Fehrenbacher, seconded by Council Member Love to approve the minutes of the May 8, 2013 City Council Work Session Meeting, as presented. All in favor. Motion passed unanimously. V. CONSENT AGENDA 1. City of Centerville May 9, 2013 through May 22, 2013 Claims (Check #27966- 27988) w/Voided Check #27970 & Check #27989-27994 2. Centennial Police Department Claims through May 9, 2013 (Check #9440-9458) w/Voided Check #9399 3. Centennial Fire District Claims through May 6, 2013 (Check #5794-5810) 4. 2013 St. Genevieve Annual Chicken Dinner – Community Parish Center, 6995 Centerville Road ~ Special Event Permit Application ~ Private Property, Temporary Liquor License (10:00 a.m. – 8:00 p.m.)/with serving of food, Raffle, Paddlewheel(s) & Pull-tabs) ~ Sunday, August 18, 2013 5. Massage Therapist License & Massage Establishment License ~ Ms. Krista Balmer Operating Within Schlavin Chiropractic Motion by Council Member Fehrenbacher, seconded by Council Member Paar to approve the Consent Agenda as presented. All in favor. Motion passed unanimously. VI. AWARDS/PRESENTATIONS/APPEARANCES 1.Mr. George Eilertson, Northland Securities a. Review Bond Rating & Bids for Improvement Bonds Mr. Eilertson reported that Northland Securities received bids today from three (3) bidders, (Raymond James & Assoc., Inc., Robert W. Baird & Company, Inc. & BOSC, Inc.. Mr. Eilertson stated that the City received a double A rating from Standard & Poors and he felt that this assisted in receiving the good bids and low interest rate of 2.4%. Mr. Eilertson also stated that the City’s location, reserve amounts and per capita debt were all 26 Page of City of Centerville Council Meeting Minutes May 22, 2013 key factors in their determination. Council Member King questioned Standard & Poors’ rating of the City as being Moderately High regarding debt as a percent of market value. Mr. Eilertson stated that even though Standard & Poor’s gave this ranking he would give it a ranking of moderate debt and comparative to other cities of similar size. Discussion ensued regarding the use of Standard & Poors versus Moody’s, other cities’ ratings and firms used for obtaining them, no need for future borrowing due to the street maintenance budgeting, and Council Member King’s request for more information related to S & P’s rating of Moderately High. Mr. Eilertson stated that he would contact S & P regarding Council Member King’s questions and forward that information to Administrator Larson. Mr. Eilertson explained to Council that bidders pay a premium for higher interest rates and Raymond James & Associates, Inc. bid the bond purchase with a $30,000 premium that would be paid to the City to offset the total bond issuance. This would bring the total amount of the bond to $1,485,000. Mr. Eilertson stated that ultimately the City would be paying a higher interest rate but paying less over the period of the bond. Mr. Eilerston reported that the City would receive the bond proceeds by June 13, 2013 and the City could commence paying expenditures associated with the 2013 Street Improvement Project. VII. OLD BUSINESS 1. None. VIII. NEW BUSINESS 1. Standard & Poor’s – Double A Rating of the City of Centerville Previously covered. 2. Res. #13-0XX – Accepting Proposal on the Sale of $1,510,000 G.O. Improvement Bonds, Series 2013A, Providing for Their Issuance & Pledging for the Security As previously stated by Mr. Eilertson the Improvement Bond would be in the amount of $1,485,000. Motion by Council Member Paar, seconded by Council Member Fehrenbacher to adopt Res. #13-015 – Accepting Proposal on the Sale of $1,485,000 G.O. Improvement Bonds, Series 2013A, Providing for Their Issuance & Pledging for the Security. Council Member King Opposed. Motion passed. 3. Mound Trail Property Owner Requests 36 Page of City of Centerville Council Meeting Minutes May 22, 2013 Administrator Larson reported that an informal meeting was held with Mound Trail residents and approximately twelve (12) were present. Administrator Larson reminded Council that in 2005 the City installed a watermain to serve most of Mound Trail, upon a resident’s request for services. Administrator Larson also stated that with the request and financial assistance from Anoka County to extend the existing main to 1261 Mound Trail due to the well being too close to the County’s sanitary sewer line and the contractor’s willingness to connect additional residents at the same time, the City forwarded correspondence to residents regarding their respective sunset dates for connection (2017 or 2021). Administrator Larson stated that several residents requested that the Council consider extending the assessment period to 25 years rather than 15 due to their situation with lengthy setbacks from the roadway which increases their assessments in some situations in excess of $13,000. Residents also suggested increasing the allowable well repair costs from $500 to $1,500 before triggering mandatory connection per existing City Code and allowing pre-payment of connection fees prior to connection. Discussion ensued regarding current costs for well repairs, fees set by Council for future connection, potential for mandatory capping of all private wells by other governmental entities, tracking of pre-payments and City knowledge of well repairs that exceed the Code requirements. Motion by Council Member King, seconded by Council Member Paar to amend City Code, Chapter 51, Section 51.08 (B) to increase the costs allowed for repair to existing wells to $1,500, rather than $500. Discussion ensued regarding a resident’s repair of an existing well exceeding the repair cost limit and not knowing the Code requirements, setting a current day cost repair level, retaining existing wells for watering lawns and entities responsible for regulation of them. The Mayor called for a vote on the motion. Voting in favor was Council Member King. Voting against: Wilharber, Fehrenbacher, Love and Paar opposed. Motion failed. Motion by Council Member Love, seconded by Council Member Paar to amend City Code, Chapter 51, Section 51.08 (B) to increase the allowed costs of repair to existing wells to $1,000 rather than $500. Council Member King opposed. Motion carried. Administrator Larson reviewed his recommendation for Council consideration regarding providing two (2) options for length of assessments would only apply to those connecting to municipal water service and not for the street assessments. 46 Page of City of Centerville Council Meeting Minutes May 22, 2013 Motion by Council Member Fehrenbacher, seconded by Council Member Love to approve two (2) options for length of assessments associated with water connections; 15 years at 4% interest or 25 years at 5.25% interest for those water service line assessments that exceed an amount of $12,000. All in favor. Motion passed unanimously. IX. ANNOUNCEMENTS/UPDATES Administrator Larson reported that the State Legislature have adjourned for the year and noted that several bills had been passed: allowing cities to again receive Local Government Aid (LGA) with the City receiving ±$50,000 and local city government’s ability to be tax exempt upon purchasing certain items; however, excise tax on vehicles would not be exempt. Administrator Larson stated that these bills would take effect in January of 2014. Administrator Larson suggested that Council consider receiving appraisal for their surplus land in anticipation for placing on the market for sale. Administrator Larson stated that Council had scheduled a Work Session following their next regularly scheduled meeting to discuss the 2014 budget, streets, LGA and levy limits. Attorney Glaser reported that recently WCCO television aired a segment on the Ticket Education Program that the cities operate, and that the League of MN cities authored bills to retain the funds earned from the program locally rather than forward them to the State of Minnesota. Attorney Glaser stated that there is a potential that the State of Minnesota could gain these funds going forward but not retro-actively. Council Member King reported that letters are being forwarded to the Federal Communications Commission (FCC) regarding Comcast’s Basic Rate Package and that North Metro Telecommunications Commission will keep the Council abreast of their actions regarding this item. Council Member Fehrenbacher stated that at a recent Police Governing Board Meeting they discussed their annual audit and will be discussing methodology for calculating cities’ share of financing the department. Mayor Wilharber reported that at a recent Fire Steering Committee meeting they determined that they would provide inspections for multi-family and rental residences. Mayor Wilharber stated that following a 10 minute break, Council would be holding a Work Session. 56 Page of City of Centerville Council Meeting Minutes May 22, 2013 X. ADJOURNMENT The motion made by Council member Fehrenbacher, seconded by Council Member King to adjourn the regularly scheduled meeting of May 22, 2013 at 7:25 p.m. Motion passed unanimously. Transcribed by City Staff Teresa Bender, City Clerk 66 Page of