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HomeMy WebLinkAbout2019-09-11 CC Minutes - Approved Approved CITY OF CENTERVILLE CITY COUNCIL WORK SESSION & COUNCIL MEETING September 11, 2019 5:30 p.m./6:30 p.m. Pursuant to due call and notice thereof, the City of Centerville held a scheduled City Council Work Session & Council Meeting on September 11, 2019 at City Hall, 1880 Main Street. COUNCIL WORKSESSION I. CALL TO ORDER Mayor Paar called the meeting to order at 5:35 p.m. ROLL CALL PRESENT: Mayor Jeff Paar Council Member Russ Koski Council Member Matt Montain Council Member D. Love ABSENT: Council Member Michelle Lakso STAFF: City Administrator Mark Statz Finance Director Bruce DeJong II. ITEMS OF DISCUSSION a. 2020 General Fund Budget III. ADJOURNMENT Motion by Mayor Parr, seconded by Council Member Koski to Adjourn the Work Session of September 11, 2019 at 6:22p.m. All in favor. Motion carried. COUNCIL MEETING I. CALL TO ORDER Mayor Paar called the meeting to order at 6:30 p.m. ROLL CALL PRESENT: Mayor Jeff Paar Council Member Russ Koski Council Member Matt Montain Council Member D. Love ABSENT: Council Member Michelle Lakso City of Centerville City Council Meeting Minutes September 11, 2019 STAFF: City Administrator Mark Statz Finance Director Bruce DeJong City Attorney Kurt Glaser Mayor Paar called a moment of silence for the victims and their families of the 9/11 tragedy. II. PLEDGE OF ALLEGIANCE III. APPROVAL OF AGENDA Mayor Paar provided an opportunity for others to add or delete any items on the agenda. Item #1 change the wording from “will be available on Wednesday” to “as presented”. Motion by Council Member Love seconded by Council Member Koski to Approve the Agenda with the noted Change on Item 1. All in favor. Motion carried. IV. APPOINTMENTS/PRESENTATIONS 1. Mr. Craig Johnson – District 6 County Commissioner Candidate. Mr. Craig Johnson introduced himself and thanked Rhonda Sivarajah for her 15 years of service. He stated why he felt that he was the best candidate for the seat and stated that on November 5, 2019 there will be a Primary Election and the General will be held on February 11, 2020. He thanked the Council for their time and he also thanked them for the moment of silence. Mayor Paar thanked Mr. Johnson and wished him good luck with his race. V. PUBLIC HEARING 1. Improvement Hearing – Downtown Street and Utility Improvements Administrator Statz explained to the public the policies and procedures of a public hearing. Mayor Paar opened the public hearing at 6:40 p.m. for the Downtown Street and Utility Improvements. Administrator Statz stated the City is contemplating special assessments to benefiting properties for the proposed street and utility improvements. This is the first (1) of two (2) hearings with this evening’s being the improvement hearing where the scope and appropriateness of the project will be discussed rather than assessments that will come at a later date. Ms. Kelly Schlegel, Stantec Consulting,discussed the location of the project being Centerville Road north of Main Street, all of Sorel Street, Goiffon Road south of Sorel, Heritage Street east of Centerville Road, Progress Road south of Main Street. She stated that these roads were identified in the 2003 Pavement Management Plan needing full reconstruction and being in poor condition. She also stated that the City recently received CDBG funding for the installation of watermain which also assisted in determining that it was a beneficial time to complete the project. She stated that the project will cover roadway reconstruction, utilities (water) and drainage (storm sewer). She also stated that the existing area had minimal storm sewer and would be undersized if looking at future Page 2 of 11 City of Centerville City Council Meeting Minutes September 11, 2019 development. Ms. Schlegel stated that storm sewer would involve replacement and the extension of services to those areas that currently do not have these services and new water main and services would be installed in all areas that currently do not have the services. She stated that the proposed roadway improvements would include full reconstruction with concrete curb and gutter with the width being 28 feet from curb to curb. She stated that some parking would be along Sorel Street. With Sorel Street where parking would be widened to 34’ wide to accommodate the parking. She stated that Centerville Road north of Main Street would remain 44’ wide. She noted that the standard width of a roadway in Centerville was 32’ wide and something smaller for the area was proposed due to the narrow right of ways and being mindful of the impacts on driveways and front yards. She also stated that same would have a benefit on minimizing the amount of runoff and need for storm sewers. Ms. Schlegel stated that the street improvement costs were estimated to be $1,585,940. She stated that she believes the City desired to fund the project with street funding rather than bonding at this time but if needed the option was available. The water main system cost approximately $494,053 funded with city water fund and CDBG Funds. The storm sewer total cost would be approximately $341,415 and they would be paid through the storm sewer fund. The estimated costs included 10% construction contingencies and 25% indirect costs. The estimated assessment amount (non-City) would be approximately $306,459. This project is scheduled to begin construction in the spring of 2020 and being completed in the spring of 2021 (final lift of asphalt). Administrator Statz explained the percentages and the terms of the assessment of all property involved. He stated that commercial property will be assessed at 50% of the total cost and the residential lots will be assessed at 20%. Administrator Statz explained that there will be several ways to pay for the assessment. He stated that the assessment costs are only for the street improvements not the water main or storm sewer. The City received a grant through Anoka County (CDBG) that will pay 100% of the cost to hook up to City water for those who income qualify. He stated that residents do not have to connect to municipal water at this time, but if the well on the property fails or you sell your home, you will need to connect. Mr. Dave Kilian, 1695 Sorel Street, questioned the purpose of the five (5) on street parking spaces on Sorel and who would it benefit? He also questioned whether the existing concrete curbs that were constructed by Anoka County in conjunction with the Centerville Road project would be removed? He also questioned the removal of the existing asphalt trail along Sorel Street and whether that was being proposed to be concrete? Administrator Statz stated that the five (5) parking spaces are due to the block 7 redevelopment. If the proposal were to fall through, those would be dropped. The proposed street alignment will be centered on the right-of-way. Mayor Paar stated that there will be unique situations and best for residents to meet with staff to discuss. Administrator Statz stated that the curb line would not be farther back than it currently is at Mr. Kilian’s property. Mr. Rick Busse, 1748 Heritage Street, questioned whether the watermain assessment/costs would be added to the project pricing. Administrator Statz stated that a water assessment amount is not included in the preliminary parcel assessment amount, only the roadway. He stated that in 2009, the City modified their policy Page 3 of 11 City of Centerville City Council Meeting Minutes September 11, 2019 regarding watermain assessments and established a fee in lieu of assessment (Water Lateral Benefit Charge - $8,000). He also stated that upon connection to the municipal water system, a water access fee of $1,850 (water tower and wells) is charged along with a water meter, plumbing permit fee and the water lateral benefit fee. He stated that the water connection from the curb stop to the home is the individual’s responsibility and each home is unique regarding footage and subsequent costs associated with trenching or boring that water line. He reported that the City Council may authorize those fees to be specially assessed to the parcel at the property owner’s request. He stated that these fees would be covered if the individuals qualified for the CDBG grant. Mr. Busse stated that he desired for a cul- de-sac at the end of Heritage Street due to the numerous vehicles turning around in his driveway. Administrator Statz stated that a “hammer head” ending on the roadway (vacated Clearwater Road) is being considered. He stated that constructing a full cul-de-sac would impact individual’s yards but he stated that the City would continue to discuss the matter. Mayor Paar questioned whether posting of a “no outlet” sign would help. It was stated that there already exists a sign but it may need to be relocated. He also stated that if funds were available, looking into the idea of a cul-de-sac would be taken into consideration. Ms. Vicki Byrne, Owner of Kelly’s Korner, 7098 Centerville Road, had concerns over the vacant property and asked if the assessments have always been 50% for vacant properties. Administrator Statz stated that in the past, all road projects have been in areas zoned residential and have been assessed with a home on it and in this case the property is zoned M-1 or M-2 which is Mixed Use and could be developed as Commercial (residential/retail). The City Administrator stated that is the way we chose to do it but that is open for discussion. Ms. Byrne stated that the neighbor who has a home is being assessed approximately $7,000 and they are being assessed approximately $15,000 for a vacant piece of property. City Attorney Glaser stated that per State Statute the City assess parcels at their highest and best use. Being that the parcel could be developed as Commercial, as its zoning allows that is what it is being assessed at. Mayor Paar questioned whether if Ms. Byrne’s property was assessed at a lower rate than 50% would the remainder of the individuals benefiting from the project numbers increase. City Administrator stated that would be the same as the City owned property. He stated that nowhere in the City’s assessment policy does it say a percentage of the costs will be assessed. He also stated that it is a project, by project thought process, past practice has been to stay within the 20-25% range. If you remain at 20% and make all adjustments and recalculate but in practice it is easier to set dollar rate to propose and if change to 25% then recalculate. If change a few properties that are vacant and if Council desires they can modify that. Mr. Steven King, 1724 Sorel Street, questioned whether he would need to remove all apparatus inside his home once connected to municipal water. He questioned whether he could install a hand pump on the existing well. Page 4 of 11 City of Centerville City Council Meeting Minutes September 11, 2019 City Attorney Glaser stated that you cannot cross-contaminate. He stated that he did not believe it should be within the house. Administrator Statz stated that an exterior well, electrical connection and heated area outside the home would be allowed, but there should not be two (2) water systems serving one structure. Mr. King questioned whether the homes that are currently connected to the City’s municipal water system have had all the apparatus removed from the inside of their homes. Administrator Statz stated that inspections have not been completed regarding this item. He stated that in the future there may be measures put into place to do so. He stated that staff has been discussing connections and well repairs with well drillers and residents that are not currently connected. Mr. King questioned the difference with storm sewer with this project compared to other developments or the Peltier Lake Drive street project. He also questioned who the parking spaces were for. Administrator Statz stated that there will be no assessments associated with storm sewer as the Storm Sewer Fund will be utilized for these fees. He also stated that developers pay a storm water area charge for the entire development along with fees collected from residents’ utility bills. Administrator Statz stated that the parking spaces would be installed only if the block 7 development were to be constructed. He stated that if the development did not go through the spaces would be removed from the project. Mr. King questioned the interest rate charged for special assessments and how the percentage was derived. Administrator Statz stated that in the past, the City has bonded for projects and set the rate slightly above the bonding rate along with being slightly above bank loans. He stated that the City is not bonding for this project so Council will take that into consideration at the public hearing for special assessments. He also stated that the length of the assessment would also be discussed at that same hearing. Finance Director DeJong stated that typically the interest is 2% higher than the bond’s interest, he reviewed recent bond issuances for other communities for 10 years which were 2% and bond issuances for 20 years approximately 2.5%. He stated that 4% is within that range but is subject to Council consideration at the special assessment hearing. Mr. King stated that residents who live in the downtown area have been paying taxes for many years and until the point of potential development of block 7, no one has been concerned about the roadways. Mayor Paar stated that this was incorrect, that the 2003 Pavement Management Plan noted that the streets were in poor condition and recommended reconstruction with watermain for 2004 in the downtown area along with the City’s goal of having every home connected to municipal water services within 10 years which was 17 years ago and the economic downturn. Mr. King questioned the length of the grant. Administrator Statz stated until the end of next year. Mayor Paar stated that residents do not have to connect to water until their wells fail. Page 5 of 11 City of Centerville City Council Meeting Minutes September 11, 2019 Mayor Paar stated that Council does not like to assess individuals but due to it being a small community that is what happens. He did remind the audience that every resident is paying 80% of the project through their taxes and every resident has done this throughout the years with other projects. Mr. Ed Szulim, 1721 Heritage Street, questioned how much of his yard would be taken to widen the roadway. He had concern as his yard is one of the smaller ones in the downtown area. Administrator Statz explained that he would lose 3’ as the roadway currently is 22’ and the project is proposing 28’. He also stated that the roadway would be centered within the right-of-way. Mr. Szulim asked when he would be required to connect to city water. Administrator Statz stated that he would be required to connect to municipal water if well fails completely upon sale of house. Mr. King questioned the downtown moratorium, if the language needed to be modified for this project or home improvements such as adding a hand pump to your existing well. Administrator Statz stated that the M-1 and M-2 districts have restrictions on remodeling or adding to your home following the same building codes as every resident. Mr. King again questioned whether he could keep his existing well while being connected to municipal water. Administrator Statz stated that you cannot have two (2) systems inside your home and there can be no cross contamination. Administrator Statz explained that years ago with the Downtown Master Plan, the City Code had many restrictions on what downtown residents could do to their home. He stated that over the years, amendments have been made allowing additions up to 33% percent of the original square footage of the home. He reminded downtown residents that there are very few restrictions and they need to comply with the existing building code and City Code as any other resident. Administrator Statz stated that there is no policy/code that states that you cannot have a hand pump on your well. He stated that city practice has been to not allow two (2) systems in your home and that policy does not address that a well needs to be sealed. Ms. Lisa Anderson, 1724 Heritage Street, questioned who benefits the most from the roadways in the downtown area as there is a difference from other projects. She felt that the roadways will be utilized more if they are widened and reconstructed primarily by businesses. She stated that this may be the justification for assessments being at 20% rather than 25%-29% like other projects. Administrator Statz stated that the percentage utilized on previous projects was due to the type of bonds that were issued for the project. He stated that a 429 bond requires a minimum of 20% of assessments with the City funding the remainder. He stated that if other bonds are utilized they have different requirements and in this case it is presumed that the City will not be bonding but to remain Page 6 of 11 City of Centerville City Council Meeting Minutes September 11, 2019 in the safe side the preliminary assessments were calculated utilizing the 20% for residential parcels. He stated that Council would consider these assessments at the Assessment Hearing. Mayor Paar asked if anyone else wished to speak. Hearing none, he asked for a motion to close the public hearing and thanked the audience for their input. Motion by Council Member Koski, seconded by Council Member Love to Close the Public Hearing at 7:55 p.m. All in favor. Motion carried. Council Member Montain requested clarification on Westview Street and what portion was no longer maintained by the City and there are no assessments to the two (2) residential properties. Administrator Statz stated that it was just a connection to the existing street and no assessment would be associated. Council Member Montain stated that he also is served by a well and would prefer not to give everything up regarding it. Council Member Montain stated that he concurred with the 50% of assessments for vacant property within the downtown area stating that the parcel that Ms. Byrne was speaking of is utilized for parking associated with a business. He also stated that the one (1) city owned parcel should be modified which will change numbers slightly. Council Member Koski thanked the residents for their input. He stated that cost is very important to residents. He also felt that commercial should be charged more. He felt that unique parcels are going to be effected more and accommodations many need to be made. Council Member Love clarified that the parking spaces on Sorel Street were on City owned property and feels that nothing has been done until this new development is proposed is very unfair statement. He agree to discuss interest rates of assessments and felt that we must remain consistent with percentages assessed. Mayor Paar stated a major factor is the bids and this part of the pavement management plan and the project remaining is due to its uniqueness with the different types of properties. He also stated that he believes additional discussion needs to be had regarding a cul-de-sac on Heritage Street, signage, percentages for different types of properties (commercial/school, residential, etc.), interest rate and percentages charged for classes of property. Discussion ensued regarding the process for receiving bids, holding the public hearing on the special assessments, appeals, etc. with the project. Council Member Koski questioned bidding and Administrator Statz stated that the bid would contain language that the work take place in December. Council Member Koski questioned could it be bid several times depending on the economic climate. Administrator Statz stated that it could be up until the Council accepts bids. Mayor Paar stated that we have had projects bid twice before and again the key is where the bids come in. He stated the longer it is the worse roadway becomes. Page 7 of 11 City of Centerville City Council Meeting Minutes September 11, 2019 Council Member Love agrees that the assessment hearing should be at the beginning of the project not the end of it. Mayor Paar confirmed that the assessment would be payable 2021 for property owners. Finance Director DeJong clarified the assessment processes. Mayor Paar suggested discussing old business at this time. Council concurred. 1. Downtown Street and Utility Improvements a. Resolution 19-027 Ordering the Improvements and Authorizing Plans and Specifications b. Approving Proposal for Design Services – Stantec Administrator Statz stated that this resolution adopts “Order the Improvements” and authorizes the plans and specifications to be prepared. “Ordering the Improvement” is a term in state statute that must be used, but can be misleading and the second part authorizes Stantec to prepare the plans and specifications. Motion by Council Member Love seconded by Council Member Montain to Approve both items a and b as presented. All in favor. Motion carried. VI. APPROVAL OF MINUTES 1. August 14, 2019 City Council Meeting Minutes Mayor Paar provided Council Members with an opportunity for modifications to the submitted minutes. Motion by Council Member Koski, seconded by Council Member Love to Approve the August 14, 2019 City Council Meeting Minutes as presented. All in favor. Motion carried. VII. CONSENT AGENDA Mayor Paar provided an opportunity for Council to add or remove any item(s) to the consent agenda. Mayor Paar stated that Item #1 – City of Centerville Claims was provided (Check #32925-32974 & 1397E-1404E) and that this was the only addition. Council Member Montain pulled Item #3 and questioned the liability of the dock and who is insuring the equipment. Administrator Statz stated that the City currently has an agreement with the Bald Eagle Water Ski Club that addresses insurance on the equipment on the City’s site. Council Member Montain was concerned if someone got hurt the City wasn’t going to opening up a liability issue. Mayor Paar asked if the City is going to be listed as another addition insure. Administrator Statz confirmed. Council Member Love questioned is it going to be covered with a tarp. Council Member Koski asked if this is something the City does every year. Administrator Statz believed that their contract is coming up at the end of the year and this should be done on an annual basis requiring insurance. Page 8 of 11 City of Centerville City Council Meeting Minutes September 11, 2019 Council Member Montain stated the item #6. Nice work on budget. Item #7 Council Member Montain stated is a great event and everyone should stop by and check it out. 1. City of Centerville Claims through September 11, 2019 (Check #32925-32974) & 1397E-1404E 2. Centennial Lake Police Department Claims through September 4, 2019 (Check #12789-12790 & 12798-12805) 3. Bald Eagle Waterski Jump 4. Trail Patch Quote 5. MN Dept. of Health Grant Application – Well Sealing 6. 2020 Proposed CLPD Budget 7. Centerville Lions Request for Special Event Permit on City Owned Property 7000 Block of Centerville Road a. Temp. On Sale Liquor License Motion by Council Member Love seconded by Council Member Koski to Approve the Consent Agenda as Submitted. All in favor. Motion carried. VIII. OLD BUSINESS 2. Downtown Street and Utility Improvements Previously discussed. 3. Park Capital Fund Loan Finance Director DeJong stated that staff is bringing forward a resolution to modify the existing loan to the Sewer Fund from the Park Capital Fund loan to change to a zero interest rate from inception. This recommendation is based off of the discussion held at the previous council meeting. This Resolution forgives all the interest due to the sewer fund and going forward. This loan will be paid but without interest. Administrator Statz stated that no interest has ever been paid to the sewer fund. Finance Director DeJong stated that it is staff intention to transfer out the Park Dedication fees that were collected from Midwest Best and Ruffridge-Johnson to the Sewer Fund to pay down the principal. Motion by Council Member Koski seconded by Council Member Montain to Approve the Resolution 19-0XX Amending Resolution 10-035 Loan from the Sewer Fund to the Park Capital Fund as presented. All in favor. Motion carried. IX. NEW BUSINESS 1. Downtown Zoning Changes (Carlson) st a. 1 Reading Ordinance #19-0XX – Rezoning Certain Properties from M-1 to M-2 st b. 1 Reading Ordinance #19-0XX – Changes to M-1, M-2 and Table of Allowed Uses c. Changes to Downtown Master Plan Page 9 of 11 City of Centerville City Council Meeting Minutes September 11, 2019 Administrator Statz stated that there were two ordinances involving changes for the M-1 & M-2 districts in the code are very short and it says see Master Plan. To make changes in our Master Plan we need to make formal changes to it. Item #A is to rezone certain properties from M-1 to M-2. He stated that this is to make M1 district smaller and M-2 district larger. M-1 district requires retail on first floor of any new construction and M-2 does not. Item #B changes to M-1, M-2 and the table of allowed uses. In the table of allowed uses the only change there was the additions of accessory structure in the M-1 and M-2 conditional used. Mr. Phil Carlson, Stantec, stated that there was a loophole regarding the accessory structures. This change will fix the height restrictions of the accessory structure to 15 feet and limit the square footage. No motions were needed. X. COUNCIL/ADMINISTRATOR ANNOUNCEMENTS Administrator Statz stated that Bay View Villas have been signed and delivered. He thanked Attorney Glaser his for hard work. He reported that the first building application plan for a home for Old Mill Estates was turned in and should be starting to build at the end of the month as soon as the roads are constructed. Administrator Statz also thank Attorney Glaser for coming in for the special council meeting on Tuesday for Old Mill Estates. Mayor Paar thanked staff for their hard work. Attorney Glaser thank staff. Council Member Love wished Mayor Paar happy birthday. He stated that he has a board retreat at the League of MN Cities in the next couple of days and the reason for bringing this up now is if there are any items that any City Council Member would like him to bring forward as possible league involved item to let him know. Mayor Paar suggested more money for roads or LGA. Council Member Koski stated that much of what was discussed this evening was also discussed at Planning and Zoning last week. He stated that there were a number of people who spoke (approximately 10) and they commented why this was needed the mixed use and they did not like the idea of an apartment building. He stated that Lino Lakes had a public hearing regarding Lannar project and one of our residents (Mr. Greg Witzel) went to the meeting was curious as to what happened. He thanked Mayor Paar for the moment of silence at the beginning of the meeting for the victims of 911. He also thank the fire fighters who were in full dress uniform for 911. It was very impressive. Council Member Montain apologized to everyone because he has been unable to attend the last two meeting for personal reasons. He stated that he has been in contact with North Metro TV regarding the franchise fees and the passing for it. He stated that they have been set for the next 30 years. These fees have been capped. Mr. Statz clarified that the franchise fee are cable franchise fees not utilities. Anoka County Fire Protection Council not meeting until next month but the bylaw change has been drafted and prepared it will be voted on at the next meeting. What that does it changes the budget cycle at the end of January where the budget can be approved. He stated that the 2021 budget has already been approved and that they are working on the 2022 budget in January so that they can get everything lined up. Mayor Paar stated that there was no police governing meeting. He stated that Mr. Jon Peterson, a new business owner in Centerville, Ruffridge-Johnson, passed away. He stated that he was involved with Page 10 of 11 City of Centerville City Council Meeting Minutes September 11, 2019 Music in the Park and took pictures. This was unexpected and our hearts and prayers go out to his wife, family and business family. Mayor Paar stated that a long-time Centerville business owner, Paul Steffel is very ill. Ms. Lisa Waldo, MidWestOne Bank, and Mr. Mike Giovinazzo, American Family Insurance, have organized a benefit along with the Centerville Lions on his behalf. He stated that a spaghetti dinner and silent auction will be held on September 28, 2019 from 11:00 a.m. – 3:00 p.m. at the St. Genevieve Community Parish Center. Mayor Paar stated that Mr. Steffel has participated in City events for many years. Prayers to the Steffel family. Mayor Paar stated that the Centerville Lions’ Chili Cook-Off is scheduled for October 5 from 11:00 a.m. to 3:00 p.m. on the 7000 block on Centerville Road. He stated that additional information regarding the event could be found on the Lions Facebook page. Mayor Paar thanked the Centennial Fire Department for standing in the rain honoring all those who were involved in 911. It was very moving. XI. ADJOURNMENT Motion by Council Member Montain, seconded by Council Member Koski to Adjourn the Council Meeting of September 11, 2019 at 9:02 p.m. All in favor. Motion carried. Respectfully submitted by Sr. Account Clerk, Kris Sweeney. Page 11 of 11