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HomeMy WebLinkAbout2016-11-16 CC Minutes - ApprovedCITY OF CENTERVILLE CITY COUNCIL MEETING MINUTES November 16, 2016 6:30 p.m. Pursuant to due call and notice thereof, the City of Centerville held their regularly scheduled meeting of November 16, 2016 at City Hall, 1880 Main Street. PRESENT: Mayor Tom Wilharber Council Member Steve King Council Member Ben Fehrenbacher Council Member D. Love Council Member Elect Matt Montain ABSENT: Council Member Jeff Paar A 1) 1) r ov e STAFF: City Engineer Mark Statz City Attorney Kurt Glaser City Administrator Mike Ericson City Finance Director Ellen Pauselth CANVASSING BOARD I. CALL TO ORDER Mayor Wilharber called the meeting to order at 6:30 p.m. 1. Roll Call IL CANVASS RESULTS GENERAL ELECTION MUNICIPAL SEATS 1. Res. #16-029a — Election Results Motion by Council Member King, seconded by Council Member Love to Approve Res. #16-029a as presented. All in favor. Motion carried. III. ADJOURNMENT Mayor Wilharber Adjourned the Canvassing Board at 6:32 p.m. COUNCIL MEETING I. CALL TO ORDER 1. Roll Call City of Centerville Council Meeting Minutes November 16, 2016 II. PLEDGE OF ALLEGIANCE III. APPOINTMENTS/PRESENTATIONS 1. Lino Lakes YMCA Ms. Renee Dietz, Board Member, Lino Lakes YMCA introduced herself and stated that the YMCA desired to inform Council and their constituents of their availability, willingness to partner with the community by providing incentives for working together to benefit the community. Ms. Dietz stated that they desired to provide volunteers for City events, assist in promotion and support projects. Ms. Dietz introduced Ms. Kaarin Mantz, Membership Director who explained several new program offerings by the YMCA and stated that they have served many local youth from Heritage Camp to Youth Intervention programs in the last year. She also desired to inform Council of their program offerings and willingness to work collaboratively on events and projects. IV. PUBLIC HEARING 1. Delinquent Sewer, Water & Garbage Services Associated with the 3rd -6th Billing Cycles of 2015 & l't-3rd Billing Cycles of 2017 Mayor Wilharber opened the Public Hearing at 6:42 p.m. Subsequent to providing the audience with an opportunity for comment and none spoke. Motion by Council Member Fehrenbacher, seconded by Council Member Love to Close the Public Hearing at 6:43 p.m. All in favor. Motion carried. IV. APPROVAL OF AGENDA Mayor Wilharber stated that the agenda should reflect the addition of Checks 430577-30601. Mayor Wilharber provided an opportunity for Council Members to add additional items or remove items for further discussion. It was suggested that Council move Items 5, 6 and 7 under New Business to Items 1, 2 and 3 in an attempt to accommodate Finance Director Paulseth's appearance and Move Item 2 to 4 due to presentation of a purchase agreement by guests. Motion by Council Member Love, seconded by Council Member Fehrenbacher to approve the Agenda as amended. All in favor. Motion carried. V. APPROVAL OF MINUTES 1. October 26, 2016 City Council Meeting Minutes Page 2 of 9 City of Centerville Council Meeting Minutes November 16, 2016 Mayor Wilharber provided Council with an opportunity to make modifications. Council Member Love stated that he desired for Page 4 of 5, last paragraph reflect that he desired not to pay out vacation time on a continuous bases and if needed, additional discussion regarding policy should be had. Motion by Council Member Love, seconded by Council Member King to approve the October 26, 2016 City Council Meeting Minutes as Amended. All in favor. Motion carried. "The City Clerk confirmed the following as being desired by Council Member Love for clarification of his statement made associated with Consent Agenda Item #6 of the meeting minutes. Council Love confirmed. " "Council Member Love stated that he remembered that he wanted to ensure that Consent Agenda Item #6 followed policy, he did not have a problem with it, desired for it not to be on a continuous basis and if needed, additional discussions could be had regarding the personnel policy. " VI. CONSENT AGENDA 1. City of Centerville October 27, 2016 through November 16, 2016 Claims (Check #30602-30650) & Check #30651-30660 w/Voided Check #30661, 30662 & 30663 2. Centennial Lakes Police Department through November 3, 2016 Claims (Check #11143-11154) 3. Centennial Fire District through November 2, 2016 Claim (Check #7655-7669) 4. Encroachment Agreements —1862 Main Street & 7136 Brian Way - Fences 5. Renewal of Liquor Licenses & Tobacco for 2017 a. Corner Express/Circle K — Tobacco b. Ameer's tobacco Shop — Tobacco C. Scat Properties, Inc. DBA Wiseguys Pizza — On Sale & Sunday Liquor License 6. Metropolitan Council Local Planning Assistance Program — Grant Agreement 7. Successful Performance Review — Mr. Greg Burmeister, Lead Project Coordinator Council Member King desired for Item 46 to be pulled from the Consent Agenda for further discussion. Motion by Council Member Fehrenbacher, seconded by Council Member Love to Approve Consent Agenda Items #1-5 & 7 as presented. All in favor. Motion carried. Council Member King questioned the cost of completion of the previous Comprehensive Plan and Administrator Ericson stated approximately $28,000 and it is anticipated to cost $25,000 this time. Page 3 of 9 City of Centerville Council Meeting Minutes November 16, 2016 Motion by Council Member Fehrenbacher, seconded by Council Member Love to Approve Consent Agenda Item #6 as Presented. All in favor. Motion carried. VII. OLD BUSINESS 1. Res. #16-030 — Receiving Report, Calling for Public Hearing on Improvement and Authorization of Plans & Specifications Associated with the 2017 Mill & Overlay Street Improvement Project Engineer Statz provided Council with a handout that he previously sent to Staff regarding the review of the proposed assessment roll for the project. He stated that the Clerk will be forwarding a notice to the paper and benefiting property owners following this evening meeting. He discussed the need for modifying the preliminary assessment roll to exclude an Outlot within the Shores Development, the addition of 7397 Main Street as they gain access to the rear of their property via Mound Court and a corner lot (1608 Hunters Trail) within the Hunters Crossing Development. Additional discussion took place regarding two (2) properties located both within the cities of Lino Lakes and Centerville along with the cul de sac ending on Mound Trail. Attorney Glaser stated that he and Administrator Ericson would work with the City of Lino Lakes regarding the cul de sac and partial financial obligations. Attorney Glaser did stated that the City could assess the benefiting property owners. Engineer Statz stated that the two (2) residents will receive public hearing notices and discussions can continue subsequent to the hearing regarding the matter. Engineer Statz stated that the associated assessments on Gateway Circle should be based on front footage, size of business and value of benefit. He stated that those parcels were calculated accordingly. He also stated that the assessments are roughly 25% of the total project similar to the other mill and overlay projects completed in the past. Engineer Statz stated that the City would not be assessing for the trails that were listed in the project. Motion by Council Member Fehrenbacher, seconded by Council Member King to Approve Res. #16-030 as presented. Discussion ensued regarding with the aforementioned assessment roll modifications. Council Member Fehrenbacher made a friendly amendment to the motion by adding with the discussed modifications to the assessment roll. Council Member King Accepted the Friendly Amendment. All in favor. Motion carried. VIII. NEW BUSINESS 1. Amendment to Personnel Policy Page 4 of 9 City of Centerville Council Meeting Minutes November 16, 2016 Finance Director Paulseth explained that the current personnel policy was adopted prior to the inception of or shortly thereafter the high deductible health insurance became so prevalent. Ms. Paulselth explained that the City offers three (3) High Deductible Health Insurance Plans to its staff consisting of deductibles in the amount of $2,000, $2,500 and $3,500. She stated that the current personnel policy requires that the deductible be fully funded through HSA contributions and many employees have accumulated funds in their accounts to fund their deductible. She also stated that many other agencies require as little as 25% for funding requirements. Ms. Paulseth also desired to bring to Council's attention that the highest health insurance deductible cannot be 100% funding by IRS regulations. Brief discussion ensued regarding employees responsibilities for their financial obligations with health insurance deductibles being one of those obligations. Motion by Council Member Love, seconded by Council Member King to Amend the Personnel Policy Relating to Funding of High Deductible Health Insurance Plan Deductible at 50% through the Employee's Health Savings Account as presented. All in favor. Motion carried. 2. Fund Transfers Finance Director Paulseth stated that this request is a bookkeeping item in an attempt to close funds for efficiency. She suggested combining the funds into one revolving street fund (Fund 401 & 452). This would transfer $97,655.39 to Fund 452 from Fund 401 and she recommended that $271,927.11 from Fund 401 be transferred to Fund 452 with cancelling the interfund loan in the same amount from Fund 401 to Fund 452. She stated that this would allow for one of the interfund loans to be paid back with one remaining for 2017. She requested that Council consider transferring $100,000 from Fund 452 to the Sewer Fund 602 (Sewer) in full payment of the interfund loan from the Centerville Road Project. Motion by Council Member King, seconded by Council Member Love to Approve the Closing of Fund 401, Transferring $97,655.39 to Fund #452 and Transferring $100,000 to Fund 602 (Sewer) to Pay Outstanding Loan for the Centerville Road Proiect as Presented. All in favor. Motion carried. 3. Utility Rates Finance Director Paulseth stated that several meetings prior the Council directed her to research the current fees due to Metropolitan Council's rate increase of 12% for Wastewater Charges for the upcoming year. She reported that she believed the City's wastewater may have increased closer to 5% on average for 2016 and that Engineer Statz would be researching this item further. She stated that this increase would significantly impact the sewer funds so she is recommending to Council a 10% increase in sewer rates to adequately reserve for capital replacement costs. Council Member Fehrenbacher questioned the current rates and Ms. Paulseth stated $9.30 for residential properties. Mayor Wilharber questioned whether research had been completed regarding neighboring community's rates proposed by Metropolitan Council and Ms. Paulseth Page 5 of 9 City of Centerville Council Meeting Minutes November 16, 2016 stated an overall average of 7%. She stated that water rates have not been increased for two (2) years and suggested a 3% increase to keep pace with inflation. Council Member King stated that the water and sewer funds would both increase by $100,000 due to the payback of the interfund loans associated with the Centerville Road Project (one (1) with the payback of Item 42 for sewer and in 2017 the anticipated transfer for water). Ms. Paulseth concurred. Administrator Ericson stated that fund balances are approximately 1.3 million. Council Member King questioned adequate funding and Ms. Paulseth replied that the City has approximately 24 million worth of infrastructure in water and sewer systems. She stated that depreciation should be adding to the balance each year so that you have adequate cash flow to replace capital needs when they arise. Engineer Statz stated that the City purchased the water tower several years ago with cash rather than bonding for it and it would be Council's desires as to have adequate reserves or bond for replacement. Ms. Paulseth stated that she provided Council with a listing of infrastructure and planned dates for replacement. She also stated that it may be rather outdated and Council may desire more in depth research on costs, needs, replacement dates, etc. Discussion ensued regarding interfund loans versus bonding and paying interest on loans to complete projects, economic recovery, amount of debt the City has and the Mayor credited the current Council for decreasing that debt. Council Member Love questioned at what point does the Council need to make a decision on these matters. Ms. Paulseth replied you will be considering adopting your budget levy at your next meeting and these proposed figures would be included. Ms. Paulseth addressed her recommendation to increase the Storm Water fee which is $4.20/bi- monthly billing cycle to residents to $5/bi-monthly billing cycle. Ms. Paulseth stated she was unaware of how long it had been since an increase had been made to these fees but did state that the amount in the fund is not enough to dredge one pond. Ms. Paulseth stated that the fund was drained due to paying off an interfund loan associated with the downtown. She stated that these funds would also be utilized for curb and gutter, raingardens on a street project. Motion by Council Member Love to table this item. Subsequent to additional discussion about splitting the items for consideration, Council Member Love removed his motion from the floor. Motion by Council Member Fehrenbacher, seconded by Council Member Love to Increase Sewer Rates by 10% Commencing 2017 to Provide an Adequate Reserve Level in the Fund to Support Infrastructure Replacement as presented. All in favor. Motion carried. Motion by Council Member Fehrenbacher, seconded by Council Member King to Increase Water Rates by 3% Commencing 2017 to Provide an Adequate Reserve Level in the Fund to Support Infrastructure Replacement as presented. Council Member Love opposed. Motion carried 3-1. Motion by Council Member Fehrenbacher, seconded by Council Member Love to Table Consideration of Adiusting Fees Associated with Storm Water for 2017 Until Council's December Meeting. All in favor. Motion carried. Page 6 of 9 City of Centerville Council Meeting Minutes November 16, 2016 Staff stated that they would prepare information regarding ponds, sediment, cleaning schedule and appropriate funding and present it to Council at their next meeting. 4. Presentation of Harold Ulvestad, Rockland Advisors & John Chirhart, Gaughan Companies — Ruffridge Johnson Purchase Agreement & Timeline for 2065 Commerce Drive Mr. Harold Ulvestad, Rockland Advisors, introduced himself and stated that he represents Mr. & Mrs. Pederson owners of Ruffridge Johnson Equipment Company who would like to submit a full price offer $950,000 to purchase 2065 Commerce Drive (Lot 2, Block 1, Clearwater Business Park). Mr. Ulvestad stated he would briefly recap the offer and stated that it is similar to their previous offer which was approved on July 8, 2015. He also stated that the purchase agreement includes a feasibility and inspection period including permits to construct a new facility when the purchase agreement is fully executed no later March 1, 2017 or slightly over 180 days with closing on June 21, 2017. Mr. Ulverstad desired for Council to understand that the offer does contain a contingency that the Pederson's first close on two (2) properties of ownership in Minneapolis. He stated that the properties are currently under a letter of intent with Oppidan Companies and it is anticipated that they will submit an offer shortly. Council Member Fehrenbacher questioned whether the plans for the building were different from the last submittal and Mr. Ulverstad stated no. Mr. John Chirhart, Gaughan Companies, stated that previously the sale of Mr. & Mrs. Pederson's property fell through and that is way they requested withdrawal of their previous offer. He stated that Oppidan Companies was a very solid and reliable company who has developed small retail buildings and a number of housing projects and completed several senior housing projects. He stated that with the property being shovel ready it takes the burdens from the buyer; however, the Pederson's are utilizing the 1031 Exchange Program which defers capital gains but also allows them to seek out additional properties that they may exchange into. He did say that it is a reasonable tool for a seller to use to allow deferral and what can happen is it is in a buyer interest to control their option but Mr. Ulverstad states that is not the case. Council Member Love questioned what the City can do with the property until the purchase agreement is fully executed and Mr. Chirhart stated that the due diligence period does encumber the property and does not allow the City to actively market the property. Mr. Chirhart stated that the City has hired an alternative broker who would be involved with a backup plan if the sale fell through and would then market the parcel. Council Member Love stated that with the upcoming weather it is not a good time for selling, however, good for the City to not be marketing. Council Member Love questioned at what time the $10,000 earnest money would not be refunded. Mr. Chirhart stated that when buyer and seller sign it will be placed in escrow. Mr. Ulvestad stated following the due diligence period prior to closing that money becomes nonrefundable. Engineer Statz stated that he felt that this was a great opportunity. Council Member Fehrenbacher questioned the part of the process Ruffridge Johnson Equipment was in previously when they withdrew their offer. Administrator Ericson stated that the same day plans were submitted the offer fell through. Engineer Statz stated that they would still have to complete surveys due to the floodplain modifications made several years ago even though this was a part of the original Page 7 of 9 City of Centerville Council Meeting Minutes November 16, 2016 Shovel Ready documents and no issues this time. City Attorney Glaser was comfortable with the agreement. Motion by Council Member Fehrenbacher, seconded by Council Member Love to Approve the Submitted Purchase Agreement and Agreed Upon Timelines. All in favor. Motion carried. 5. Planning & Zoning Commission Recommendation for Lot Split, Rezone & Associated Comprehensive Plan Amendment — 7384 Old Mill Road Administrator Ericson stated that at Planning & Zoning's November 1, 2016 meeting the Commission considered an application for Rezone, Lot Split and Associated Comprehensive Plan Amendment of their property located at 7384 Old Mill Road. He stated that both Mrs. Fruth and Mr. Fruth were present. He explained that the current 10 acre parcel is zoned R-1 and has a home on the most westerly portion, they desire to split off four (4) acres which will retain the home and have a six (6) acre parcel to the rear of the property as part of a settlement agreement between the two (2) of them. Administrator Ericson stated that the Planning & Zoning Commission discussed at length non -conformity of leaving the front four (4) acres zoned R-1, heard comment from two (2) members of the abutting development to the south of the property, (Acorn Creek Estates). One of the residents questioned storm water and the other felt that it should be rezoned to R-5 similar to the abutting development. Attorney Glaser raised some concern regarding the existing temporary cul de sac that leads to what would be the rear six (6) acres, the fact that Revoir Street cannot exceed its current length without an outlet per code and that did Mrs. Fruth understand that her property taxes may increase due to the rezoning. Staff stated that they surely could contact the Fruth's to ensure their true desire and that the City's 60 day review time period would not be jeopardized by waiting until the next meeting to consider this item. Attorney Glaser stated that he would contact both Mr. & Mrs. Fruth to ensure the desired rezoning. Motion by Council Member Love, seconded by Council member Fehrenbacher to Table this Item Until the December 14, 2016 Council Meeting Allowing Additional Time to Ascertain Desires of Property Owners. All in favor. Motion carried. 6. Delinquent Sewer, Water & Garbage Services Associated with the 3rd -6th Billing Cycles of 2015 & l't-3rd Billing Cycles of 2017 Administrator Ericson stated that this is a reoccurring annual item. Motion by Council Member King, seconded by Council Member Fehrenbacher to Adopt Res 16-031 as presented. All in favor. Motion carried. 7. Consideration of Cancellation of December 28, 2016 Regularly Scheduled City Council Meeting Page 8 of 9 City of Centerville Council Meeting Minutes November 16, 2016 Mayor Wilharber clarified that if an item needed consideration prior to the January 11, 2017 regularly scheduled meeting himself or Mayor elect Paar could call for a meeting. Motion by Council Member Fehrenbacher, seconded by Council Member Love to Cancel the Regularly Scheduled Council Meeting of December 28, 2016 Due to the Holidays. All in favor. Motion carried. IX. COUNCIL & ADMINISTRATION ANNOUNCEMENT 1. Administrator Ericson Administrator Ericson stated that a current business in Centerville is looking to expand and Staff is working with them to remaining in the City. He noted it was a very telling sign of the economy improving. Council Member Love reported on the Centennial Lakes Police Governing Board meeting that was recently had stating that two officers were sworn in, one (1) full-time and one (1) part-time. He also stated that a Life Saver Award was presented to Office Lucas Fredrickson who delivered Narcan to an individual who was overdosing, he reported that the new City Administrator of Circle Pines was welcomed and that the department received several AED donations. He discussed that the Chaplin has been on 50 calls in the last five years and the department is looking to hire a second one that will also assist the Fire Department. Mayor Wilharber reported that they are currently working on negotiations for a three (3) year contract for patrol officers and sergeants, purchasing body cameras in 2017 and the City of Circle Pines will be chairing the meetings in 2017. He also reported that the City of Lexington recently surveyed their residents regarding policing services and results were extremely favorable for policing, facebook and their web page. X. ADJOURNMENT Motion by Council Member Fehrenbacher, seconded by Council Member King to Adiourn the Council Meeting of November 16, 2016 at 8:21 p.m. All in favor. Motion carried. Respectfully submitted by Teresa Bender, City Clerk Page 9 of 9