HomeMy WebLinkAbout2014-04-09 CC Minutes - Approved
CITY OF CENTERVILLE
SPECIAL CITY COUNCIL MEETING
April 9, 2014
6:00 p.m.
Pursuant to due call and notice thereof, the City of Centerville held a Special Council Meeting of
April 9, 2014 at City Hall, 1880 Main Street which are contained in these minutes.
PRESENT:
Mayor Tom Wilharber
Council Member Ben Fehrenbacher
Council Member D. Love
Council Member Jeff Paar (Arrived 6:04)
ABSENT:
Council Member Steve King
STAFF:
City Administrator Dallas Larson
City Engineer Mark Statz
Legal Counsel Kurt Glaser
Public Work Director Paul Palzer
I. SPECIAL MEETING CALL TO ORDER
Mayor Wilharber called the meeting to order at 6:00 p.m.
II. PLEDGE OF ALLEGIANCE
III. AWARDS/PRESENTATIONS/APPEARANCES
1. ABDO, Eick & Meyers – 2013 Annual Audit
Mr. Steve McDonald introduced Mr. Kevin Knopik, CPA stating that he is the lead auditor for
the City of Centerville and that he would be providing most of the presentation. Mr. McDonald
stated that their audit found that the City is in sound financial condition, consistency in internal
controls, noted that one very minor year end capital asset was not classified correctly, minimal
need for audit adjustments and that the City is transitioning well from a full-time Finance
Director to a part-time Finance Director. Mr. McDonald stated that there were no problems
interacting with staff and that preparation by Finance Director Ellie Paulseth for the audit was
excellent.
Mr. Knopik concurred with Mr. McDonald and reviewed the provided audit stating that the
City’s General Fund balance increased $52,776 from 2012 exceeding requirements of 40-50% of
the 2014 budgeted expenditures while setting aside funding for capital equipment and future debt
services, stated that property taxes are 80% of the total general fund revenue while public safety
is 48.9% of the expenditures, stated that ongoing evaluation of projects will assist in determining
whether to close a fund or if additional funding sources are needed for deficits, reviewed debt
City of Centerville
Special & Regular Council Meeting Minutes
April 9, 2014
service funds; enterprise funds (water, sewer, and storm water). Mr. Knopik stated that the City
is fairly consistent and below peer groups (communities similar in population and size) and that
the City’s spending and debt leverage has decreased. Mr. Knopik also stated that there will be
future accounting practices that will be required (GASB67 and 68) but feels that they will not
have a significant impact.
Administrator Larson stated that he felt satisfied with the report, staff had worked hard
throughout the year and that Finance Director Paulseth desired to be at the meeting but she was
ill.
The Mayor closed the Special City Council meeting at 6:20 p.m.
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City of Centerville
Special & Regular Council Meeting Minutes
April 9, 2014
CITY OF CENTERVILLE
CITY COUNCIL MEETING
April 9, 2014
6:30 p.m.
Pursuant to due call and notice thereof, the City of Centerville held a Council Meeting of April 9,
2014 at City Hall, 1880 Main Street which are contained in these minutes.
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
Public Work Director Paul Palzer
I. REGULAR MEETING CALL TO ORDER
Mayor Wilharber called the meeting to order at 6:30 p.m.
II. AWARDS/PRESENTATIONS/APPEARANCES
1.None.
III. PUBLIC HEARING
Mayor Wilharber Opened the public hearing at 6:31 p.m.
1. Amending Assessments ~ Backage Road/Commerce Drive Project (Sheehy Property/City
of Centerville)
City Attorney Glaser reviewed his submitted Memorandum regarding Sheehy Construction and
the calculation of principal and accrued interest with Council. Attorney Glaser stated that in
2009, Council adopted special assessments against the Sheehy parcel in the amount of $379,000;
in February of 2013, following the appeal the court ordered the City to adjust the original amount
to $249,000; two payments were received toward satisfying the debt (one in 2010 and one in
2013 following the adjusted assessment adopted by Council); in 2013, Sheehy filed suit against
the City requesting the Court to issue an order effectively barring the City from imposing
accrued interest for the debt and the Court granted the City’s motion and dismissed Sheehy’s
suit. Attorney Glaser stated that the law states “the assessment, with accruing interest, shall be a
lien upon all private and public property including therein, from the date of the resolution
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City of Centerville
Special & Regular Council Meeting Minutes
April 9, 2014
adopting the assessment.” Attorney Glaser stated that Council needed to consider whether to
proceed with determining the amount of unpaid principal and/or accrued interest necessary to
satisfy the assessment debt owed and certify that amount to the County for payment according to
the presented table submitted by the Finance Director by adopting the resolution contained in
their packet.
Attorney Glaser reviewed the presented table with Council and amended that Year 1 of the
assessment roll commence in 2015 rather than 2014 with the term of the assessment being 10
years at 5.75% interest and ending in 2024 rather than 2023.
Council Member Love questioned whether interest had been adjusted accordingly to their
payments and Attorney Glaser concurred.
Ms. Julie Douglass, Attorney Representing Sheehy Construction, introduced herself to Council
and stated that her client has two objections to paying accrue interest on unpaid principal due to:
The City adopted Res. #13-009 which specifically addresses interest and repayment
(February 13, 2013), that “no interest will be charged on any amount paid within 30
days of the resolution and that the City reassessed the Sheehy property in the amount of
$249,000 and did not include any assessment for interest between June 10, 2014 and
February 13, 2013 and Sheehy paid the February 13, 2013 reassessment amount in full
within 30 days.
Ms. Douglass’ and Sheehy’s arguments are that Minnesota State Statutes 429 specifically
429.061, subd 2, subd 3, 429.071, subd 2 and 429.081 address the Courts decision,
assessment/reassessment payment in full without interest as in the City’s re-assessment
resolution and her interpretation of Judge Larson’s order and intent.
Lengthy discussion ensued regarding the judges intent, definition of set aside, at what time does
interest being to accrue/at the time of benefit, special assessment law vs. property tax law, and
valuation and benefit to property.
Mr. Dean Luxenburg, 1697 Peltier Lake Drive, stated that Council has expended in excess of
$100,000 on this litigation to date, questioned how much more of his tax dollars they were going
to spend and requested Council stop any future action.
Mr Blair Juliar, Vice President, Sheehy Construction, stated that the Council has taken bad
advice in the past and has lost every time that this item has been taken to court. Mr. Juliar
questioned why Council desires to continue wasting taxpayer money and being poor stewards of
citizen’s money.
Attorney Glaser stated that Mr. Juliar’s comments were incorrect and that the Courts have found
in favor of the City on two occasions and that he is confident that the Judge could not address the
interest issue due to the fact that the law is clear.
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April 9, 2014
Motion by Council Member Love, seconded by Council Member Fehrenbacher to close the
public hearing at 7:05 p.m. All in favor. Motion carried.
IV. APPROVAL OF AGENDA
1. Mayor Wilharber added Centerville Claims (Check #28600-28625), a Special Event
Permit Application for an Easter Egg Hunt at LaMotte Park under New Business, Item #5
and a Request for Participation in Repairs to Bald Eagle Lake Dam by City of Hugo
under New Business, Item #4.
Motion by Council Member Fehrenbacher, seconded by Council Member Love to approve
the Agenda as amended. All in favor. Motion passed.
V. APPROVAL OF MINUTES
1. March 26, 2014 City Council Meeting Minutes
The Mayor provided Council Members with an opportunity to amend the presented minutes.
Mayor Wilharber desired that the minutes reflect that Engineer Statz would address the drainage
issues that Ms. McGown stated during the Public Input – 2014 Royal Meadows Municipal
Improvements on Page 4 of 7. Mayor Wilharber also desired that under Updates, Item #10,
second sentence add “from Dupre Road to City limits” after municipal sewer and water and that
a typo in the last sentence, “Consensus was thaot staff” be corrected.
Motion by Council Member Paar, seconded by Council Member King to approve the
minutes of the March 26, 2014, City Council Meeting as amended. Council Member Love
Abstained. Motion passed.
VI. CONSENT AGENDA
1. City of Centerville March 27, 2014 through April 9, 2014 Claims (Check #28600-28625)
& Voided Check #28606 & (Check #28626-28630)
2. Centennial Police Department Claims through March 28, 2014 (Check #9839-9855)
w/Check #9772 Voided
3. Centennial Fire District Claims through March 21, 2014 (Check #6305-6317)
4. Res. #14-0XX – Establishing a Local Board of Appeals & Equalization, Pursuant to
Minnesota Statute 274.014, Subd. 3(c)
5. P & R Recommendation to Approve Special Event Permit Application ~ Easter Egg
Hunt, Laurie LaMotte Park – April 19, 2014 (8:00 a.m. – 2:00 p.m.
Mayor Wilharber provided Council Members with an opportunity to remove any item that they
desired additional information on.
Mayor Wilharber desired to pull Item #5 for additional discussion.
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Motion by Council Member Fehrenbacher, seconded by Council Member Love to approve
the Consent Agenda Items #1-4 as presented. All in favor. Motion passed.
Mayor Wilharber questioned Mr. Palzer regarding the use of the fields at Laurie LaMotte
Memorial Park. Building Official/P.W. Director Palzer stated that the fields are quite saturated
and will be opening April 21, 2014 (weather dependent). Mayor Wilharber stated that Mr. John
Ficcadenti had requested a waiver of fees, stated that he was a non-profit and desired to have his
company’s inflatables at the event.
Discussion ensued regarding waiving of fees or deposit; legal, non-profit status versus
community event and a City sponsored event.
Mayor Wilharber stated that the Lions felt that the monies that they had been spending on plastic
eggs, stuffing time and candy could be better spent on alternative avenues such as food baskets
for families in need, etc. and that is why they are no longer providing the event.
Building Official/P.W. Director Palzer was instructed to contact Mr. Ficcadenti on Friday prior
to the event to inform him whether use was permitted on the fields at LaMotte Park.
Motion by Council Member Paar, seconded by Council Member Fehrenbacher to approve
Consent Agenda Item #5., Special Event Permit Application for an Easter Egg Hunt
scheduled for April 19, 2014 at Laurie LaMotte Park subject to the Building Official/P.W.
Director’s approval the Friday prior, waiving of the permit fee and a deposit of $500. All
in favor. Motion passed.
VIII. OLD BUSINESS
1. None.
IX. NEW BUSINESS
1. Approval of the 2013 Annual Audit & Management Letter
Previously discussed.
Motion by Council Member Fehrenbacher, seconded by Council Member Love to approve
the 2013 Annual Audit & Management Letter as presented. All in favor. Motion passed.
2. Res. #14-020 – Amending Special Assessments – Backage Road/Commerce Drive
(Sheehy Property/City of Centerville)
Attorney Glaser again stated that the City has prevailed in the last two litigations, he has
attempted to work with the firm toward a settlement and they have refused. Attorney Glaser
stated that Sheehy had requested a declaratory judgment, however, it was improperly filed and it
was dismissed by the judge.
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Special & Regular Council Meeting Minutes
April 9, 2014
Motion by Council Member Fehrenbacher, seconded by Council Member Paar to approve
Res. #14-020 as presented.
Discussion ensued regarding negotiations to settle, both sides desiring for a conclusion, the
City’s believe that the assessment outweighs the legal costs and Sheehy’s potential for
preserving their right to appeal Council’s action this evening.
Attorney Glaser stated that the assessment roll tax year one should be 2015 rather than the
presented 2014.
Council Member Fehrenbacher amended his motion to modify the assessment roll
commencing year 2015 rather than the presented 2014 and stating that the assessment
would run through the year 2024. All in favor. Motion passed.
3. City of Hugo’s Request for Participation in Cost Share of Repairs to Bald Eagle Lake
Dam
Administrator Larson stated that the City of Hugo is requested that neighboring communities that
potentially could be affected if the dam where to fail assist them in making needed repairs even
though the dam is not in their communities. The City of Hugo stated that there was a potential
for grant funding and reimbursement of expenditures once they have submitted application to the
Department of Natural Resources. The City of Hugo also stated that they have secured funding
through the Minnesota Department of Transportation in the amount of $252,000 to be utilized for
replacement of the dam.
Lengthy discussion ensued regarding ownership of the dam, reciprocation in the City of
Centerville’s projects, Hugo’s desire for repairing/replacing the dam due to potential roadway
flooding, homeowner/County and lake association assistance and other resources that the cities
have worked together on (salt storage, etc.)
Motion by Council Member Fehrenbacher, seconded by Council Member Paar to table this
item to the next regularly scheduled Council meeting in an attempt to provide Staff with
ample time to obtain additional information. All in favor. Motion passed.
X. ANNOUNCEMENTS/UPDATES
1.Administrator Larson stated that the City of Centerville was successful in receiving a
grant for $10,000 to assist in sealing wells associated with the Royal Meadows
Municipal Improvement Project from the Minnesota Department of Health.
Administrator Larson stated that there is a potential for submission of another grant in
the fall.
2.Engineer Statz stated that staff has researched elevations of basements of homes
along CSAH21/Centerville Road from Dupre Road to the City limits can be served by
municipal (gravity) sewer except 6709 Centerville Road unless additional interior
equipment is utilized. Administrator Larson stated that he would be forwarding a
survey to those residents in an attempt to ascertain their desires for connection and
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April 9, 2014
provide that information to Council at their next meeting. Administrator Larson
stated that this would assist Council in making their decision to contain this item
along with the reconstruction of the County road-way project.
3.Council Member King reported that the P & R Committee desired a signature line be
added to the Special Event Permit Application Form, that the Committee was
unaware that Staff had met with representatives from the Bald Eagle Water Ski Club
and their desire to potentially assist in funding for the purchase of property owned by
St. Paul Board of Water that abuts Centerville Lake and Trailside Park.
Administrator Larson stated that he would address this item more in depth during the
Joint Work Session following the Council meeting.
4. Council Member Fehrenbacher stated that the Centennial Lakes Police Department
has completed their annual report and will be presenting it at Council’s next meeting.
Council Member Fehrenbacher stated that it is available on their web site along with
their strategic plan.
5. Council Member Paar stated that the Fire Steering Committee would be meeting the
following date to consider appointing an interim Chief and discussings appraisals of
the current district’s equipment. Council Member Paar stated that Chief Streich
accepted the position as Chief in Andover and his last day would be April 21, 2014.
Mayor Wilharber read Chief Streich’s resignation letter.
XI. ADJOURNMENT
Motion by Council Member Fehrenbacher, seconded by Council Member Paar to Adjourn
the regularly scheduled Council meeting of April 9, 2014 at 7:47 p.m. All in favor. Motion
passed.
Transcribed by City Staff Member Teresa Bender, City Clerk
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