HomeMy WebLinkAbout2016-02-10 CC Minutes - Approved
CITY OF CENTERVILLE
CITY COUNCIL MEETING
February 10, 2016
6:30 p.m.
Pursuant to due call and notice thereof, the City of Centerville held their regularly scheduled
meeting of February 10, 2016 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 Mike Ericson
City Attorney Kurt Glaser
I. CALL TO ORDER
Mayor Wilharber called the meeting to order at 6:35 p.m.
II. PLEDGE OF ALLEGIANCE
III. PUBLIC HEARING/COMMENT
Mr. Jeff Magdik, Home Detail, Inc. appeared before Council to discuss Council’s action of
January 13, 2016 and Council’s desire to terminate his purchase agreement for property located
at 7261 Main Street.
Mr. Magdik explained that when he originally purchased the property he, his financial advisors
and realtor felt that he could sell a build-to-suit home on the property. However, several years
later, they have determined that with the economy, uniqueness of the lot, Main Street traffic,
high water table and lack of vision of interested buyers and that is not the case. Mr. Magdik
stated that he understands that he has not fulfilled the agreement to construct a home on the
property by December 31, 2015. He has been provided with two (2) opportunities to provide a
construction timeline and has not completed that task. He is now requesting an extension to
March 9, 2016 to secure architectural plans for constructing a new home on the property with
private financing.
Attorney Glaser stated that Council has the opportunity to stop, postpone or delay its previous
action to terminate the purchase agreement, if so desired.
Lengthy discussion ensued regarding Mr. Magdik’s lack of planning, lack of communication and
lack of compliance with the original agreement and extensions.
City of Centerville
Council Meeting Minutes
February 10, 2016
The Mayor stated that they would place this item under New Business, Item #6 for further
discussion.
IV. APPOINTMENTS/PRESENTATIONS
1. None.
V. APPROVAL OF AGENDA
Mayor Wilharber added Centerville Claims through February 10, 2016 (Check #30027-30038)
under Consent Agenda, Tobacco License – Ameer’s Tobacco, Inc., 1869 Main Street, Mr. Jeff
Magdik, Home Detail, Inc, and a letter from Commissioner Rhonda Sivarajah regarding the
Metropolitan Council governance structure under New Business.
Motion by Council Member Fehrenbacher, seconded by Council Member Love to approve
the Agenda as presented. All in favor. Motion carried.
VI. APPROVAL OF MINUTES
1. January 27, 2016 City Council Meeting Minutes
Mayor Wilharber requested the following corrections: page 1 to modify the service dates of Mr.
Des England “23 years on the Centennial Fire District and nine years on the Centerville Fire
Department”; Page 3, paragraph 5, requested that the last sentence read: “individuals that reside
on County Roads generally do not pay for road projects or maintenance except through property
taxes and in this instance would incur franchise fees”; and Page 5, paragraph 5, requested that the
time read: “00:00:01”.
Motion by Council Member Paar, seconded by Council Member King to approve the
January 27, 2016 City Council Meeting Minutes with the above stated amendment. All in
favor. Motion carried.
VII. CONSENT AGENDA
1. City of Centerville January 28, 2016 through February 10, 2016 Claims
(Check #30005-30025) W/Void Check #30026 & (Check #30027-30038)
2. Centennial Lakes Police Claims through January 14, 2016 (Check #10703-10721)
3. Centennial Fire District Claims through February 1, 2016 (Check #7264-7308)
4. Wahoo Adventures Contract – Fete des Lacs 5K/8K Run Walk/Race Coordinator
Agreement
5. League of MN Cities Ins. Trust ~ Liability Coverage ~ Waiver Form (Tort Liability)
6. 2016 Agreement for Residential Recycling Program (Anoka County)
Mayor Wilharber requested that Items #4, 5 & 6 be pulled for additional discussion.
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Motion by Council Member Fehrenbacher, seconded by Council Member Paar to approve
Consent Agenda Items 1-3 as presented. All in favor. Motion carried.
Mayor Wilharber questioned Page 2, Vendor Payments and what those would be. Administrator
Ericson stated that Ms. Kolstad had provided a more detailed breakdown of duties for the Parks
& Recreation Committee with all race expenditures would be run through himself prior to
forwarding to Council for disbursement and he would forward to Council a copy of the signed
contract.
Mayor Wilharber questioned the purpose of the waiver versus not waiving monetary limits on
municipal tort liability. Legal Counsel Glaser stated that the City desires to not waive the
monetary limits as established by State Statute 466.04 which will only allow a cap or maximum
payout for a lawsuit.
Mayor Wilharber has questioned the City’s annual recycling goal for 2016 being 381 tons and
what it has been in years past. City Administrator Ericson stated that he has been representing
the City at monthly recycling meetings and has built a working relationship with Waste
Management and Anoka County SWAAT Staff. He will research the item and bring that
information back to the Council at their next meeting.
Motion by Council Member Fehrenbacher, seconded by Council Member Love to approve
Consent Agenda Items 4 & 5 as presented and Table Item #6 Until the Next Regularly
Schedule Council Meeting. All in favor. Motion carried.
VIII. OLD BUSINESS
1. Ordinance #75, Second Series – Franchise Agreement – Xcel Energy – Gas
Attorney Glaser stated that Excel Energy has requested that the implementation date be delayed
by one month due to their filing with the Public Utilities Commission.
Motion by Council Member Fehrenbacher, seconded by Council Member Love to Approve
the Date Modification Implementation Date to May 1, 2016 from April 1, 2016.
Council Member Love questioned funding delay and ramifications. Engineer Statz stated that
the dollars cannot be made up but a funding shortfall could come from reserves and then paid
back.
All in favor. Motion carried.
2. Ordinance #76, Second Series – Franchise Fee – Xcel Energy – Gas
Attorney Glaser stated that the date also needed to be modified to May 1, 2016 from April 1,
2016 similar to item #1.
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Motion by Council Member Fehrenbacher, seconded by Council Member Paar to Aprove
Amending the Date from April 1, 2016 to May 1, 2016 as Requested by Xcel Energy - Gas.
All in favor. Motion carried.
IX. NEW BUSINESS
1.1737 Main Street – Purchase Offer (Kingdom Baking)
Administrator Ericson stated that the City received an offer for purchase of 1737 Main Street, as
Mr. Suski was unable to participate in the walk through of the home and the letter of interest was
not an official offer. Administrator Ericson stated that he has met with the Lino Lakes business
owner and has discussed its intended use, program availability, funding and drive through
inability of the site. Mr. Francois Zango has since removed his offer. Administrator Ericson
stated that when he met with Mr. Zango he provided him with information from numerous
agencies that may assist him on relocation/enlarging his business (i.e., Anoka County Open for
Business, Quad Area Chamber of Commerce, etc.).
Administrator Ericson stated that there is no need for Council action on the item as it was
forwarded for informational purposes only.
2.Anoka County Radio Club
Administrator Ericson stated that the presented letter had been forwarded to Council Member
Paar per his prompting and previous discussions of Council’s desire to encourage the Club to
continue to provide services to the City for events and assisting agencies with their efforts as
they provide needed services.
Both Finance Director Paulseth and Legal Counsel Glaser agree that a donation is not applicable
in this case, however, purchase of the equipment for use of the entity could be funded through
public safety funds.
Motion by Council Member King, seconded by Council Member Paar to purchase 12
handheld radio batteries at $44.99 each and eight ATV/Gator batteries at $129.99 each.
Additional discussion ensued regarding the Finance Director’s understanding that the funding
would be $1,579 rather than $174.
Legal Counsel Glaser stated that the radio club operates under a limited FCC broadcaster license
and follows their guidelines regarding funding, donations, etc. Legal Counsel Glaser felt that
Ms. Paulseth was aware of the expenditure and felt that as long as a public safety benefit would
be had by the purchase it was fine. Discussion ensued regarding the amount of expenditure and
the necessity of obtaining Ms. Paulseth’s input regarding expending $1,579 for the items.
Motion Died.
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Motion by Council Member Paar, seconded by Council Member Fehrenbacher to Table
Item #2. Anoka County Radio Club Until February 24, 2016. All in favor. Motion carried.
3.Consider Appointment of Mr. Pete Johnson & Mr. Charles Reinhardt to the
Planning & Zoning Commission
Council Member Love stated that the Planning & Zoning Commission did not have an
opportunity to interview the candidates as their last meeting was cancelled due to the snow
storm. Council Member Love also stated that he felt that Mr. Johnson would be a good fit for
the Commission and was a knowledgeable professional.
Motion by Council Member Paar, seconded by Council Member Love to Appoint Mr. Pete
Johnson to the Planning & Zoning Commission. All in favor. Motion carried.
Due to Mr. Charles Reinhardt’s absence, Administrator Ericson was requested to reschedule an
interview with him if he remained interested in the vacant seat.
4.Discussion on Joint Goalsetting Session (Council/P & R/P & Z)
Administrator Ericson stated that he placed in Council’s packet the 2015 City Focus Goals and a
comprehensive packet of a recent Strategic Planning Summary conducted by the City of
Stillwater with assistance of Mr. Richard Fursman. Administrator Ericson stated that due to
weather conditions, the Planning & Zoning Commission meeting was cancelled so he had not
had an opportunity to meet with them to discuss their goals. Administrator Ericson requested
scheduling a joint meeting in March and questioned whether Council desired to complete
something similar to Stillwater’s Plan.
Discussion ensued regarding the need to consider future goal planning versus just a year,
comprehensive plan update and its guidance vice versa, five year planning and scheduling for the
first meeting in March.
5.Tobacco License – Ameer’s Tobacco, Inc. (Osama Abdelaziz Nafe Masoud & Maher
Hamdi Mohous Awad), 1869 Main Street
Administrator Ericson stated that all applicable fees, application and backup documentation had
been submitted for both gentlemen, the Centennial Lakes Police Department had completed their
background checks and found no reasons for denial of a license. Both gentlemen introduced
themselves to Council.
Mr. Masound stated that they desired to open a tobacco shop at 1869 Main Street where they will
be selling cigarettes, cigars, roll your own tobacco and tubes and accessories such as lighters.
Mayor Wilharber stated that many other communities are banning flavored tobaccos and
colorfully wrapped items with the belief that these are targeted toward kids and it may be
something that the City may desire to consider. Council Member Love questioned the
gentlemens’ background. Mr. Awad stated that he currently owned a grocery store and that Mr.
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Masoud owns another tobacco store in Lindstrom, Minnesota. Both gentlemen stated that they
would comply with any regulations that the City has regarding items for sale and are willing to
work with the City.
Administrator Ericson stated that the property owner of Uptown Center did appear at City Hall
requesting whether the business was appropriate for its location prior to obtaining a signed lease.
Lengthy discussion ensued regarding pipes, one-hit devices, legal and criminal use of these
items, paraphernalia, liquid cigarettes, hookahs, water pipes, sampling, hookah bars, potential for
criminal behavior and headshops. Both Mr. Masoud and Mr. Awad stated that there would not
be a hookah bar at the location, admitted that it is a part of their culture and stated that the space
that they are renting is approximately 800 square feet and would not be large enough to offer to
their clients.
Council requested that the Planning & Zoning Commission consider the possibility of amending
the City’s current Tobacco Code to address items of sale, hookah usage, sampling,
favoring/brightly colored items, etc.
Motion by Council Member King, seconded by Council Member Fehrenbacher to Approve
a Tobacco License for Ameer’s Tobacco, (Mr. Masound & Mr. Awad), 1869 Main Street as
presented. All in favor. Motion carried.
6.Mr. Jeff Magdik, Home Detail, Inc. – Purchase Agreement 7261 Main Street
Mayor Wilharber provided an opportunity to Council to address Mr. Magdik. Council Member
Fehrenbacher stated his displeasure with Mr. Magdik’s lack of follow through regarding the
purchase agreement and payment and lack of response to repeated telephone calls. Attorney
Glaser stated that Mr. Magdik originally signed the purchase agreement in 2013, has been given
several opportunities to follow through with agreed upon requirements and he has not
successfully completed extensions granted. Attorney Glaser stated that Council desired for a
home to be constructed on the parcel and that the parcel would be generating property taxes by
now.
Mr. Magdik stated that when he originally agreed to the purchase agreement he anticipated that
he would construct a presold house/build-to-suit and up until several months ago when he
received notice from the City that the agreement was in default, he and his financial advisors
have determined that his planned $400,000 home would not be economically feasible. Mr.
Magdik stated that it is not his desire to construct a model home and make two mortgage
payments but those that have been interested in the parcel cannot envision a home on the unique
lot and dislike the vehicle traffic on Main Street.
Council Member Fehrenbacher stated that previously the City was willing to work with Mr.
Magdik and now has reservations due to Mr. Magdik’s lack of following through and promises
that have not materialized.
Mr. Magdik stated that he intended on submitting plans but then winter was upon us. Council
Member Fehrenbacher stated that Mr. Magdik’s lack of planning is not the City’s issue.
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Attorney Glaser stated that he had discussions with Mr. Magdik in regards to his lack of
motivation regarding the purchase agreement and its requirements, communication and how
Council directed Staff to terminate the agreement due to default. Attorney Glaser reminded
Council and Mr. Magdik that the City has approximately $50,000 of his money and he has fallen
short of numerous opportunities provided to him by Council, had disregarding required payments
due to failure to construct a home completing the purchase agreement requirements and returning
the property to the tax rolls.
Mr. Magdik stated that he desired to be given until March 9, 2016 to provide to Council
architectural plans, financial backing, and a phased construction timeframe. Mr. Magdik stated
that his job as a custom home builder does not allow him to be in an office-type setting on a daily
basis whereas he is on the construction site and unable to communicate or return telephone calls
during regular business hours. He also stated that his desire is to improve the neighborhood with
a well-built, custom home, with enough room for a family and storage.
Council Member Paar stated that the home needs to meet City Code requirements, Rice Creek
Watershed requirements and any all other local agency’s requirements and may not be
aesthetically pleasing to some. He also stated that the City is attempting to grow and that is why
the requirements of the purchase agreement were what they were which Mr. Magdik agreed to.
Council Member Paar stated that Mr. Magdik will meet with all local agencies regarding his
architectural plans, secured financing, meeting with the City’s Building Official prior to
appearing before Council in March to expedite construction. Mr. Magdik stated that he felt that
he would commence construction in late March to the beginning of April weather dependent.
Attorney Glaser stated that Mr. Magdik also owes the City property taxes in the amount of
$2,800 and that should be paid prior to any acceptance of his plans.
Council Member King felt that communication should not fail when you have an individual that
can take a message. Council Member Fehrenbacher challenged Mr. Magdik as to whether he
would fulfill the outline requirements Council has discussed this evening. Mayor Wilharber
stated that in 2011 he had requested that City owned property be placed for sale and maintained,
the City entered into a purchase agreement with Mr. Magdik and he has fallen through on many
opportunities to fulfill Council’s requests. Mayor Wilharber stated that the City desires to work
with Mr. Magdik due to the sizable amount of money that we have obtained from him.
Motion by Council Member King, seconded by Council Member Fehrenbacher to Provide
Mr. Magdik, Home Detail, Inc., an Opportunity to Appear Before Council at its March 9,
2016 Scheduled Meeting With Architectural Plans to Construct a Home on 7261 Main
Street and Commence Construction by Early April, Weather Dependent.
Additional discussion ensued regarding required local agency approvals, surveys, financing and
outstanding money owed to the City.
A friendly amendment to Council Member King’s motion was made to include the above
stated requirements. Council Members King and Fehrenbacher concurred. All in favor.
Motion Carried.
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Mayor Wilharber stated that screening with evergreens or the like will limit noise similar to a
home located along Centerville Road.
8.Letter from Anoka County Commissioner Rhonda Sivarajah Concerning
Metropolitan Council Governance Structure
Mayor Wilharber stated that he desires for Council to read the information provided regarding
Commissioner Sivarajah’s position and also stated that the Counties of Anoka, Carver, Dakota
and Scott also support the concept of a regional approach.
X. COUNCIL & ADMINISTRATION ANNOUNCEMENT
1. Administrator Ericson
a. P & R Agenda - Administrator Ericson gave a brief recap of the Parks &
Recreation Committee stating that the Tour de Hugo bike ride will be looping around Centerville
Lake, is a great wellness event along with the running and biking trails. Administrator Ericson
also stated that he had present the Committee with several opportunities for grant submissions.
b. 2016 Fete des Lacs Festival Committee – Administrator Ericson gave a brief
recap of the third meeting of the Committee and stated that Ms. Kolstad is eager to assume the
position of Race Coordinator and looks forward to working with volunteers and sponsors
regarding the event.
Engineer Statz stated that Anoka County is finishing work on the final payment invoices for
Centerville Road/CSAH21 and the City should be in receipt of them shortly.
Council Member King requested that information regarding the new FEMA Map be contained in
the next Council packet. Council Member King reported that he attending the Fire Protection
Council meeting where discussion was held regarding a budgetary shortfall of approximately
$1,200.
Administrator Ericson stated that he the February 6, 2016 Skate Night, hayrides, hot cocoa and
popcorn Parks & Recreation Committee event. He forwarded a thank you from the Committee
to the Public Works Staff for ice of both rinks.
Council Member Fehrenbacher stated that he attended the Police Commission Steering
Committee meeting where discussion regarding liability coverage and swearing in of sergeant
Jacobsen and two officers (Fredrickson and Jarring) to place. He also stated that the Centennial
Lakes Police Department has completed a grant for computers to be placed in cars and plate
readers. He would keep the Council abreast of its status. He also commented that a donation
had been received for the purchase of an additional Automated External Defibrillator. Council
Member Fehrenbacher reported that discussion regarding the purchase of a new vehicle for the
Community Service Officers also took place and rotation of vehicles. Administrator Ericson
stated that Ms. Nancy Noran retired from the Administration Department and desired not to be
recognized. Mayor Wilharber stated that the Police budget was $73,000 under budget for the
year.
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Council Member Paar stated that he attending the recent Fire Steering Committee meeting which
was of the three City Centennial Fire District, but now the District is new and improved. He
thanked Administrators Keinath and Ericson for their diligent efforts on completing financials in
preparation of Lino’s termination of the District. Mayor Wilharber reported two recent incidents
in the City of Circle Pines stating that our Police Offices and First Responders witness some
horrible things and go home to their families and lead regular lives and he desired to thank them
for their service.
Mayor Wilharber stated that the Centerville Lions were pleased that they cancelled their annual
fishing contest and commented about a recent fishing contest in Wisconsin where numerous
vehicles had fell through the ice. Mayor Wilharber reported that there would be a NE Water
Summit regarding lake levels and White Bear Lake taking place at the Hugo City Hall on
February 18, 2016 commencing at 7:00 p.m. Mayor Wilharber stated that he would bring
information back to the Council at their next meeting. Mayor Wilharber stated that he recently
received a telephone call regarding an auto repair shop which was a civil issue, officers has
reported numerous complaints about the shop and wondering if there was concern regarding their
conditional use permit. Attorney Glaser stated that there have been concerns, staff has been in
contact with the owner regarding sprinkler requirements and failure to comply with Building
Code and currently the owner has the building for sale.
Mayor Wilharber suggested that Council Members consider attending meetings that they are not
appointed to (Open to the Pubic) so that when outgoing Council Members that are serving on
them they will be informed of issues of concern and meeting etiquette.
Mayor Wilharber also suggested that the Parks & Recreation Committee review Outlot B along
Centerville Road to determine whether to place a bench or make a small clearing for individuals
to utilize as a natural park.
Mayor Wilharber recessed the regularly scheduled Council Meeting at 8:21 p.m. to the Closed
Executive Session.
XI. CLOSED EXECUTIVE SESSION (Unless Otherwise Noted)
1.Administrator Ericson Annual Performance Review
The Council briefly discussed the Administrator’s Performance Review and determined to
review his performance in June.
XII. ADJOURNMENT
Motion by Council Member Paar, seconded by Council Member Fehrenbacher, to Adjourn
the Council meeting of February 10, 2016 at 9:00 p.m. All in favor. Motion carried.
Transcribed by Staff Member Teresa Bender, City Clerk
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