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HomeMy WebLinkAbout2019-08-28 CC Minutes - Approved CITY OF CENTERVILLE CITY COUNCIL WORK SESSION, COUNCIL MEETING, CLOSED EXECUTIVE SESSION MEETING(S) August 28, 2019 6:30 p.m. Pursuant to due call and notice thereof, the City of Centerville held a scheduled City Council Work Session on August 28, 2019 at City Hall, 1880 Main Street. PRESENT: Mayor Jeff Paar Council Member Russ Koski Council Member Michelle Lakso Council Member D. Love ABSENT: Council Member Matt Montain STAFF: City Administrator Mark Statz Finance Director Bruce DeJong COUNCIL WORKSESSION I. CALL TO ORDER Mayor Paar called the meeting to order at 5:30 p.m. II. ITEMS OF DISCUSSION a. 2020 General Fund Budget III. ADJOURNMENT Motion by Council Member Koski, seconded by Council Member Lakso to Adjourn the City Council Work Session at 5:32 p.m. All in favor. Motion carried. COUNCIL I. CALL TO ORDER Mayor Paar called the meeting to order at 6:33 p.m. II. PLEDGE OF ALLEGIANCE III. APPROVAL OF AGENDA Mayor Paar provided an opportunity for others to add or delete any items. Administrator Statz added Ms. Cindy Hansen, Candidate for Anoka County Commissioner, District 6 under Appointments/Presentations and Special Event Permit, Centerville Lions Paul Steffel Benefit, September 28, 2019 St. Genevieve’s Community Parish from noon to 3:00 p.m., City of Centerville Council Meeting Minutes August 28, 2019 Temporary On Sale Liquor License, Raffle Permit under Consent Agenda and Bayview Villas under Old Business, Item #2. Motion by Council Member Love, seconded by Council Member Lakso to Approve the Agenda as Submitted. All in favor. Motion carried. I. APPOINTMENTS/PRESENTATIONS 1. Ms. Cindy Hansen, Candidate for Anoka County Commissioner, District 6 Candidate Hansen introduced herself to Council, provided information about her background, stated that she has collaborated with many of the commissioners on projects in the past and desires to provide resident’s with a voice and representation. She thanked Council for their time and Mayor Paar thanked her for her time and wished her good luck with her race. V. PUBLIC HEARING 1. None. II. APPROVAL OF THE MINUTES 1. July 24, 2019 City Council WS, City Council Meeting Minutes Mayor Paar provided an opportunity for others to make modifications to the presented minutes. Motion by Council Member Koski, seconded by Council Member Lakso to Approve the July 24, 2019 City Council WS, City Council Meeting Minutes as Presented. All in favor. Motion carried. VII. CONSENT AGENDA 1. City of Centerville Claims through August 28, 2019 (Check #32893-32924), E-Check #1393E-1396E) 2. Centennial Lakes Police Claims through August 22, 2019 (Check #12760- 12761, 12765-12779, 12780-12788 & Payroll Check #12762-12764) 3. Centennial Fire District Claims through August 8, 2019 (Checks #8613-8624) & Payroll Check #8604-8612) 4. Successful Performance Reviews a. Building Official/Public Works Director Mr. Paul Palzer (Completion of 25 Years) b. Senior Account Clerk Ms. Kris Sweeney (Completion of 19 Years) 5. Encroachment Agreement – Shed, 1694 Lakeland Circle 6. Encroachment Agreement – Shed, 1650 Lakeland Circle 7. Special Event Application – Hunters Ridge Lane & Beaver Pond Way Block Party Page 2 of 8 City of Centerville Council Meeting Minutes August 28, 2019 8. Special Event Application – Centerville Lions (Paul Steffel Benefit), September 28, 2019 – St. Gen’s Community Parish Center a. Temp. On Sale Liquor License b. Raffle Permit Mayor Paar provided an opportunity for Council to add or remove any item(s) to the consent agenda. Motion by Council Member Love seconded by Council Member Lakso to Approve the Consent Agenda as Submitted. Council Member Love stated that he desired to recognize the 25 and 19 years of service of both staff members Palzer and Sweeney. He thanked them for the dedication. Mayor Paar concurred. All in favor. Motion carried. III. OLD BUSINESS 1. Centennial Fire District Proposed 2020 Budget Administrator Statz stated that the Fire Steering Committee approved the budget and has forwarded same to City Council for consideration. He explained that the formula for each City’s cost share. Council Member Lakso stated that it was a unique year for budgeting, lengthy discussion was had throughout numerous meetings, creative thinking was utilized and Chief Lundstrom’s recommendations for a fiscally responsible and appropriately staffed department were included. Administrator Statz stated that the overall budget increased by 5.25%. He also stated that each City’s portion of the budget is formula based by call volume and other factors on a rolling average. He stated that in 2020, the City of Centerville’s portion would be larger than the City of Circle Pines’. He reported that there are two (2) components to Centerville’s share of the budget; operating budget and capital fund contribution. He stated that the operating budget share is proposed to be a 6.64% budget increase and the capital fund is proposed to be a 14.29% increase. He also reported that overall if would be a 7.61% increase for the City and that that increase is largely due to the addition of two (2) part-time Duty Crew members staffing daytime hours, Monday through Friday. Council Member Koski stated that call volume increased, pending retirement of Assistant Fire Chief, day time calls, capital equipment needs and that it is tough to look at an increase but it is public safety which is a high priority. Council Member Lakso stated that the District is attempting to market volunteer firefighters with day-time availability and if several were hired that would modify the budget. Mayor Paar stated numerous discussions took place regarding the budget, day-time firefighter recruitment and the safety of residents of all communities. He thanked all that were involved and felt that difficult decisions had been made but in the best interest of each community. Page 3 of 8 City of Centerville Council Meeting Minutes August 28, 2019 Motion by Council Member Koski, seconded by Council Member Lakso to Adopt the Centennial Fire District Proposed 2020 Budget as Presented. All in favor. Motion carried. 2. Bayview Villas City Attorney Glaser stated that the developer has requested the City’s assistance in closing on the property. He stated that the existing lien would be paid off at time of closing but the paperwork takes several weeks to months to be removed. He stated that most lenders and the County require that there is a clean title. He stated that the developer has agreed to provide title insurance in the amount of the lien that would protect the majority of the City’s interest. He also stated that winter is pending and the developer desires to finish constructing the roadway and constructing foundations before frost. Council Member Lakso questioned why this was just brought forward and did anyone disclose the lien prior to this point in the process. City Attorney Glaser stated that staff was aware that there was a lien on the property but it was anticipated that it would have been taken care of by now. Council Member Love questioned who the developer was and Attorney Glaser stated that it was Rich DeFoe, Bayview Villas, LLC. Attorney Glaser stated that TJB was the builder who has left the project. City Administrator Statz stated that Bayview Villas, LLC has hired two builders for the development. Council Member Love questioned whether the builders have appeared before staff. City Administrator Statz stated that we rarely have contractual agreements with builders. He also stated that he has had a real estate agent assisting him with the development. Council Member Koski questioned whether any other liens have been placed on the land and what would be the City’s financial risks. City Attorney stated that the City would not be out anything. He also stated that Bayview Villas, LLC is paying fees associated with his fees and the engineering fees which would also be covered by the title insurance. Council Member Koski questioned if some went wrong with the title insurance. Attorney Glaser stated that the Department of Commerce would stand behind the title insurance. Council Member Koski questioned potential for out of pocket costs. Attorney Glaser stated that he felt it was zero and stated that it is why you purchase title insurance. Council Member Lakso questioned when the title insurance would become effective. Attorney Glaser stated when the plat is filed. Mayor Paar had nothing to add and is looking forward to the development. Motion by Council Member Koski, seconded by Council Member Love to Authorizing the City Administrator to: Accept a Title Insurance Policy over the Public and Common Elements of the Bayview Villas Plat and at the City Administrator’s Discretion, Record the Plat for Bayview Villas and Land Use Documents Subject to the Existing Liens Encumbering the Parcel. All in favor. Motion carried. IX. NEW BUSINESS Page 4 of 8 City of Centerville Council Meeting Minutes August 28, 2019 1. Res. #19-0XX – Transfer of Property to EDA Administrator Statz stated that the City has several small remaining marketable parcels: northwest corner of Main Street and Centerville Road (23-31-22-22-0005, 23-31-22-22-0004, 23-31-22-22- 0011, 23-31-22-22-0010 and 23-31-22-22-0009) approximately a half acre and the northeast corner of Main Street and Progress Road (23-31-22-21-0051 and 23-31-22-21-0058) also approximately a half acre which has been discussed by Council in the past. He stated that they are fairly difficult to market and have been in the past. He suggested that Council could transfer the parcels to EDA and let them determine the best method for marketing. He stated that the proceeds would go to the EDA to fund their mission of encouraging new businesses, relocation of existing businesses and assisting current businesses with their needs. Mr. Steve King, 1724 Sorel Street, had concerns about when the EDA was originally formed as to their duties, authority and Council control. Administrator Statz stated that they would have the power to market the property, accept those proceeds for a capital fund and utilize those funds and have a budget. He also stated that they do not have the authority to spend more than they have or to levy independent taxes. He explained that some EDAs have taxing authority. It was thought that the proceeds would create a working capital for them without increasing the city’s budget. Administrator Statz explained the differences between an Economic Development Commission who only has the ability to make recommendations to Council or an Economic Development Authority which has many more abilities such as selling, marketing, developing and buying of property, etc. Attorney Glaser stated that if Council were to transfer the property to them, then the EDA could exercise their power that they always have had. Council Member Koski stated that he believes that when the Council previously formed the EDA he was under the impression that he was voting for an EDC with recommendation ability only. Council Member Love stated that he believes when the EDA was originally formed it was discussed at length regarding their authority. Lengthy discussion ensued regarding the proceeds from land sales going to pay down bonds/debt, Finance Director DeJong reviewed previous land sales and property taxes and anticipated payoff by February 1, 2020, what they have completed with the $20,000 budget to date, uniqueness of properties, who markets the property, whose time is utilized to take care of this issue (staff, EDA or Council), two (2) Council Members seated on the EDA, cable casting of EDA meetings and funding to do so. Tom Wilharber, 6849 Centerville Road, stated that when he was reelected to Council in 2009 these parcels were to be marketed, now they are not and he agrees that Council should not give the property to an EDA. Administrator Statz stated that the EDA hired a consultant for a TIF district in the downtown ($11,000), has had Anoka County Economic Development staf and staff from Open to Business at EDA meetings. Council Member Koski had many concerns regarding funding, the budget, Page 5 of 8 City of Centerville Council Meeting Minutes August 28, 2019 rebranding, remodeling the building, the pending street project, 20 year TIF district and wonder where Council’s priorities are and have not even put a for sale sign on the properties. Mayor Paar felt that the EDA was started to market the City, bring in business and as a group, they are wondering where the Council wants them to go. Mayor Paar felt that development on any property would be reviewed by the Planning & Zoning Commission who in turn would make recommendations to Council. Any construction would need to be approved and follow code. Council Member Love suggested that each member of Council serve on the EDA to become more comfortable with their vision. Council Member Love stated that the EDA can only spend their money on EDA items. He also stated that Council can end the EDA’s existence. Mayor Paar stated that Council needs to determine EDAs role. Motion by Council Member Lakso, seconded by Council Member Love to Table Res. #19- 0XX – Transfer of Property to EDA as Presented. All in favor. Motion carried. 2. Res. #19-0XX – Authorizing Use of HRA Funds for EDA Revolving Loan/Grant Program Administrator Statz stated that the Council previously discussed that the EDA has expended funding for a TIF consultant associated with the Downtown Block 7 project. He stated that the remaining balance of the EDA budget is less than $9,000 for the year. He also stated that these funds are insufficient for funding the Revolving Loan/Grant Program and through discussions with the Anoka County HRA funding is available through them. Administrator Statz stated that the Revolving Loan/Grant program was not the inception of the Centerville EDA but that many other cities in the area are utilizing similar programs. He stated that in fact this program comes from the City of White Bear Lake where the program is thriving. He also stated that MidwestOne Bank is one (1) of several sponsors of the program. Council Member Love questioned how the Open House that was recently held that provided information to local businesses was received. Administrator Statz stated that there was interest in the program, discussion was had about the program, some businesses were excited about projects that they could complete and he felt that several may apply. He did state that he desired the turnout to be larger. Council Member Lakso stated that she felt the meeting was well attended, the program is available if businesses desire to utilize it and it should assist them with their desired projects. Mayor Paar stated that the City of Centerville’s goal, along with EDA, is to grow the tax base by bringing new businesses to Centerville and assisting existing businesses in remaining successful. He stated that he felt that several business owners that attended would be taking advantage of the program. Motion by Council Member Lakso, seconded by Council Member Love to Adopt Res. #19- 024 – Authorizing Use of HRA Funds for EDA Revolving Loan/Grant Program as Presented. All in favor. Motion carried. Page 6 of 8 City of Centerville Council Meeting Minutes August 28, 2019 3. Interfund Loan – Sewer to Park Dedication Fund City Administrator Statz stated that this item was discussed at the earlier Work Session, reviewed the materials included in the packet and stated that the Parks & Recreation Committee made the following recommendations: make a one-time payment from the General Fund balance to the Sewer Fund in the amount of the accrued interest since the 2010 resolution establishing the inter- fund loan ($103,564.29); in 2019 and moving forward, pay the interest on the principal balance for the inter-fund loan from the General Fund, as detailed in the loan resolution, until such time as there are sufficient Park Dedication Fees to make both principal and interest payments per the schedule ($16,625 in 2020) and after applying the recently paid Park Dedication Fees (Ruffridge- Johnson-$10,875) and (Midwest Best Water $5,002.50) to the principal on the Sewer Fund loan; leave the remaining balance in the Park Capital Project Fund to be utilized for minor capital projects that may arise prior to the complete repayment of the principal balance of the inter-fund loan. This should leave a balance of approximately $53,000. The purpose of leaving those funds would be to have a reasonable working balance in the fund so that sensible, modest and timely additions to the park system can be made without adding to the inter-fund loan amount. Consensus of the Council was to table this item until a resolution is placed before them for action. Motion by Council Member Koski, seconded by Council Member Love to Table the Item Until a Formal Resolution is Available for Action. All in favor. Motion carried. X. COUNCIL/ADMINISTRATOR ANNOUNCEMENTS 1. Administrator’s Report Administrator Statz reported that he apologized for the length and added that he attended the Rice Creek Watershed District Public Hearing on their Proposed 2020 Budget meeting along with other local area City Administrators where they voiced concerns over the 10% increase from 2019 and the 7.5% increase from 2018. He also stated that there have been discussions that they also intend on increasing their 2021 and 2022 budgets 10% with the following years increasing 7.5%. 2. Council Reports a. Lakso Council Member Lakso had nothing more to report. b. Love Council Member Love had nothing more to report c. Koski Council Member Koski congratulated both Mr. Palzer and Ms. Sweeney and thanked them for their years of service. Page 7 of 8 City of Centerville Council Meeting Minutes August 28, 2019 i. Planning & Zoning Commission – Council Member Koski stated that a Public Hearing is scheduled for the September 3, 2019 P & Z meeting to discuss and obtain input regarding rezoning certain properties from M-1 to M-2 in the downtown area. He stated that the proposed rezoning would alleviate some requirements regarding retail for those that previously were zoned as M-1. He also stated that staff is recommending amendments to the Downtown Redevelopment Master Plan. ii. Fire Steering Committee –Nothing to report. Council Member Koski stated that there is a Public Hearing at the September 11, 2019 Planning & Zoning meeting regarding the Watermark development th along 20 Avenue North. d. Montain No report was given due to Council Member Montain’s absence. i. North Metro Telecommunications Commission ii. Anoka Fire Board e. Paar Mayor Paar attended the EDA meeting on August 21 due to Council Member Love’s absence, stated that he attended the EDA Open House following. He stated that he felt that it went well and was successful. He congratulated Mr. Palzer and Ms. Sweeney and thanked them for their years of service. i. Police Governing Board – Nothing to report. ii. Other Mayoral Reports – Nothing to report. XI. RECESS TO CLOSED EXECUTIVE SESSION Motion by Council Member Koski, seconded by Council Member Lakso to Recessed to Closed Executive Session at 8:24 p.m. All in favor. Motion carried. Respectfully submitted by City Clerk, Teresa Bender. Page 8 of 8