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HomeMy WebLinkAbout2006-05-24 CCCITY OF CENTERVILLE CITY COUNCIL MEETING MAY 24, 2006 6:30 p.m. Pursuant to due call and notice thereof, the City of Centerville held their regularly scheduled meeting on May 24, 2006, at City Hall, 1880 Main Street. PRESENT: Mayor Mary Capra Council Member Lee Council Member Paar Council Member Terway ABSENT: Council Member Lakso STAFF: City Engineer Statz City Attorney Glaser City Administrator Larson I. CALL TO ORDER Mayor Capra called the May 24, 2006, City Council meeting to order at 6:30 p.m. II. PUBLIC HEARINGS None. III. SET AGENDA Council added the following items to the Agenda: Encroachment Agreement for 1862 Prairie Drive and Metro Plains Update. Motion by Council Member Terway, seconded by Council Member Paar to approve the Agenda as amended. All in favor. Motion carried unanimously. IV. APPROVAL OF COUNCIL MINUTES 1.May 10, 2006 City Council Meeting Minutes Mayor Capra requested the following changes: On Page 3 of 10 change larger cities get redevelopment grants to CDBG funds rather than redevelopment grants. Motion by Council Member Paar, seconded by Council Member Lee, to approve the May 10, 2006 City Council Meeting Minutes as amended. All in favor. Motion carried unanimously. City of Centerville Council Meeting Minutes May 24, 2006 2. May 10, 2006 City Council Work Session Meeting Minutes Motion by Council Member Paar, seconded by Council Member Terway to approve the May 10, 2006 City Council Work Session Meeting Minutes as presented. All in favor. Motion carried unanimously. V. CONSENT AGENDA 1.City of Centerville May 10, 2006 through May 24, 2006 Claims 2.Centennial Fire District May 12, 2006 Claims 3.Centennial Lakes Police Department April 14 – May 11, 2006 Claims 4.Vendor and Purchase Price Modification of Council’s Previous Motion to Approve Parks & Recreation Committee’s Request to Purchase Shredded Rubber for the Fall Zone at Laurie LaMotte Memorial Park – Not to Exceed $14,143.20 Motion by Council Member Lee, seconded by Council Member Paar, to approve the Consent Agenda as presented. All in favor. Motion carried unanimously. VI. AWARDS/PRESENTATIONS/APPEARANCES 1. David J. Piggott, Anoka County Partners Mr. Piggott appeared before Council to ask the Council to consider becoming members of the partnership. He also provided an overview of the goal of the group and noted they are trying to become a regional economic development organization for the County. Mr. Piggott asked Council for $0.50 per capita or $1,800 per year membership. Mr. Piggott indicated the goal is to have a budget of $450,000 one-third from county, one third from cities and the other third from the private sector. Mayor Capra indicated that a few years ago the county talked about forming an EDA with taxing authority. She then asked if that was still in the works or not because they wanted all the cities to buy into the EDA. Mr. Piggott indicated that they have not forgotten that and still have plans to move forward with an EDA. Mayor Capra indicated that Council is looking at forming an EDA for the coming year and the $1,800 for Centerville seems to be a reasonable amount and she would like Staff to provide information and research into whether this is an appropriate investment for the City. Council Member Terway indicated that the City is beginning the downtown project so this could really be beneficial. He then asked how they could get developers in here. Page 2 of 8 City of Centerville Council Meeting Minutes May 24, 2006 Mr. Piggott indicated that he calls developers and visits them and works the phones to get them here. Council Member Lee indicated that the $1,800 would be money well spent in light of the downtown project. Council Member Paar said that he feels that the fee would be nominal for the potential benefit to bring developers to the City. He then asked Staff whether Staff feels comfortable with this. City Administrator Larson said that he feels the City will get more than the $1,800 investment in the potential to bring development to the downtown. Motion by Council Member Lee, seconded by Council Member Terway, to approve a membership in the amount of $1,800. All in favor. Motion carried unanimously. VII. NEW BUSINESS 1. Volk Sewer & Water, Inc. – Pay Estimate #1 - $99,217.05 City Administrator Larson indicated that this is the first payment to this contractor and noted that most things are going according to plan. Motion by Council Member Terway, seconded by Council Member Paar to approve the pay estimate to Volk Sewer & Water, Inc., - $99,217.05. All in favor. Motion carried unanimously. 2. Kelly’s Korner Liquor License 2006 Refund - $1,410.00 Motion by Council Member Lee, seconded by Council Member Paar, to approve a liquor license 2006 refund to Kelly’s Korner - $1,410. All in favor. Motion carried unanimously. 3. Resolution– Amending Debt Service Levy for 2004 Improvement Bond City Administrator Larson indicated that the 2004 improvement was under assessed when the bonding was set in place to finance the project. He then explained that Staff has discovered a short fall which means that the City will need to find other revenue or increase the levy amount. Engineer Statz indicated the project was not over budget and they did not find any other change orders other than the one discussed. Council Member Paar indicated that one of the roads was taken out. Page 3 of 8 City of Centerville Council Meeting Minutes May 24, 2006 Mayor Capra indicated that the City could not go back and assess after the assessment hearings were held for a mill and overlay and then the project was changed to not do the mill and overlay. Engineer Statz indicated that he would check the feasibility report to see if that helps ascertain why assessments were below the estimate contained in the bonding program. City Administrator Larson indicated that if legislation was passed that would have funded local government aid or homestead credit aid reductions, then the City could use those funds to make up the shortage. Council asked to wait on the proposed resolution for further information on what happened and whether there are other revenue streams for this. 4. Consider Amending Code to Regulate Residency of Sex Offenders Mayor Capra indicated that she was asked to bring this before the Council by a resident because Taylor’s Falls has adopted a code. City Attorney Glaser indicated the state of Wyoming gives only about 50 acres in the entire state where sex offenders can live. Mayor Capra indicated that the former attorney felt that legally the City could send out a postcard stating that they may want to choose to check the website for sex offenders. Mayor Capra indicated that Anoka County watches these individuals and that is why they would rather not live here. City Attorney Glaser said that the concerns are valid but most law enforcement would not support the ordinance from Taylor’s Falls. Studies show that this pushes the sex offenders underground and that reporting rates went from 90 to 50%. He then said that they would like to have cities put money into monitoring, but an ordinance like this would give residents a level of security. Mayor Capra suggested sending this to Planning and Zoning. City Attorney Glaser indicated that they cannot put a blanket ban in place, there needs to be valid reasons for it. Council Member Terway suggested that City Attorney Glaser be at the Planning and Zoning meeting to discuss this with them. City Administrator Larson said that he felt that Council was more suited to handle this issue. Page 4 of 8 City of Centerville Council Meeting Minutes May 24, 2006 Mayor Capra suggested having this reviewed by the Police Chief. City Attorney Glaser indicated he would review it with the Chief. Council asked Staff to take it to the Police Commission. 5.Consider Encroachment Agreement for Fence/Drainage Utility Easement Mayor Capra indicated the big fence was taken down and a new fence is being put up. She then asked whether Council would consider allowing Staff to make administrative approval and add these to the Consent Agenda. Council Member Terway agreed that Staff is aware of what is required and he would be fine to have them administratively approved and placed on consent agenda for approval. Motion by Council Member Terway, seconded by Council Member Paar, to approve the Encroachment Agreement for 1862 Prairie Drive. All in favor. Motion carried unanimously. VIII. OLD BUSINESS 1. Ordinance #6, Second Series – Housekeeping Adoption to Correct Oversight of Codifier Omission of Ordinance #81 Motion by Council Member Terway, seconded by Council Member Lee, to approve Ordinance #6, Second Series – An ordinance amending City Code, Chapter 154.016: Non-conformaing Uses and Structures. All in favor. Motion carried unanimously. 2. Revise Bond Sale Procedures and 2006 Projects City Administrator Larson provided information for Council review noting that the issue was raised regarding whether the City should issue its own bonds. He then said that he created a request for proposals to provide oversight for the process to review the official statement and receipt of bids and closing of the bond sale. He further explained that the bulk of the work would be done in house but there would be oversight at the important steps along the way. IX. ANNOUNCEMENTS/UPDATES 1.City Administrator, Mr. Dallas Larson City Administrator Larson indicated that when the City applied for the Community Development Block Grant Funds it was based upon income criteria for the neighborhood and that was submitted using census information and that may not be adequate. Mr. Larson explained that a survey may need to be completed on the neighborhood. The survey would ascertain whether the area met criteria for the program. Mr. Larson stated Page 5 of 8 City of Centerville Council Meeting Minutes May 24, 2006 that the Finance Director would be conducting the survey door-to-door and suggested that participates receive a credit on their utility bill. Council felt that an incentive to participate in the survey would be a good idea and agreed that a $10 credit towards the resident’s utility bill could be given to those that participated. 2. Business Appreciation Picnic Motion by Council Member Paar, seconded by Council Member Terway, to approve the budget for the Business Appreciation Picnic not to exceed $600. All in favor. Motion carried unanimously. 3. Business Person Mayor Capra indicated that the City is still seeking nominations for Business Person of the Year. 4. CSAH 14 Appraisal City Administrator Larson indicated the City received an offer from Anoka County for permanent and temporary easements for the land that is owned by the City behind City Hall. Anoka County has agreed, per the Memorandum of Understanding, that funds will not be exchanged for property/easements but will be offset by the City acquiring remnant parcels from the CSAH 14 project. 5. Update on Metro Plains City Administrator Larson provided information on a schedule noting the first item is the tax consequence of this project and the primary tax consequence is because this is a low to moderate income property it would be valued on income approach so will pay lower taxes around $25,000 versus a more traditional project that would pay about $75,000 in taxes which amounts to about $500,000 of loss of revenue for the three jurisdictions over twenty years.. City Administrator Larson indicated that the list of funding sources included Community Development Block Grants but the city cannot apply for them directly, because they have to be applied for through Anoka County so this may not be a viable option. City Administrator Larson indicated that Metro Plains assumed use of tax increment financing of approximately $200,000. In addition they assumed the City would use TIF to reimburse itself for the land but it is still a contribution for this project. City Administrator Larson indicated the City would be potentially giving up the ability to assess for public improvements and this agreement would have something in that regard. These assessments could have been around $300,000 to $325,000. Page 6 of 8 City of Centerville Council Meeting Minutes May 24, 2006 City Administrator Larson indicated the developer proposed that the City would waive the SAC and WAC fees of about $180,000 and also forego the Metropolitan Council fees. City Administrator Larson indicated that they did plan to pay park dedication fees of $125,000 and but were requesting that building permit fees around $50,000 to be waived. City Administrator Larson indicated that the water meters, if provided without charge, are $16,000 for a total project subsidy of around $1.9 million. Council Member Terway commented that this project would likely result in lower tax receipts than traditional housing or commercial projects. City Administrator Larson indicated that right now there is nothing on the site, so the proposed development increases taxable valuations, but it could be more if it were a more typical project. City Administrator Larson indicated he asked them about more constructing more commercial space in the project to help offset costs but he was not sure that would happen, as they were selling that component to someone else. Council Member Terway said that he still needs to look at the big picture so that he knows what is going to happen in other parts of the downtown if this goes through and would want assurance that they would complete Phase II. He then said that he has some concerns about the monetary aspect of this. Mayor Capra indicated that she does not feel that the City can meet the requested time frame. She then asked that Staff review it and provide a financial overview of the project for Council consideration. Council Member Lee indicated that before he agrees to Phase I he would want to know what Phase II is and how much that would cost the City. He then said they are asking for everything and he would like to save something for other property owners down there. He further said that he would like more time to review this and he would like to wait before agreeing to the first deal that comes through the door. Council Member Paar agreed and noted that Brian from Planning and Zoning brought up a good point about the low income housing. He has received concerns about housing that may not fit there. He then said that a land donation was discussed but that the other subsidies may be too much. Mayor Capra indicated that she is not uncomfortable with Metro Plains but her concern is the timeline and the lack of ability to have everything lined up and not knowing what there is to offer to other developers in the area. Page 7 of 8 City of Centerville Council Meeting Minutes May 24, 2006 Council Member Terway asked whether they would be interested in this one year from now. City Administrator Larson said that they would be. Council Member Paar asked Staff to provide a report on what would be left for the rest of the downtown if this project was done with the giving of the $1.9 million and what Phase II would be. Mayor Capra said she would like them to go to Planning and Zoning. City Administrator Larson suggested taking more time to look for other developers out there and determine whether this is a good deal or not. Council agreed. City Attorney Glaser suggested Council determine what they are comfortable gifting to make the deal happen. City Administrator Larson indicated that Finance Director Meyer suggested $12 to $15 million in TIF Revenues on the entire downtown redevelopment but there are a lot of public costs in this project and possibly property acquisition. OTHER UPDATES Council Member Paar asked for an update on the Rehbein meeting. Council Member Lee provided a brief explanation noting they had asked for a complete intersection and they will come back. Mayor Capra indicated the water tower is down and staff apologized to residents by going door knocking. Mr. Chuck Nolan indicated he is the new reporter for Hugo/Centerville Paper and introduced himself to Council. Council Member Lee indicated the grand opening for the police facility is June 1, 2006. Council noted that the Kelly Miller Circus will be in town May 31, 2006. X. ADJOURNMENT Motion by Council Member Paar, seconded by Council Member Terway to adjourn the May 24, 2006 City Council Meeting at 8:06 p.m. All in favor. Motion carried unanimously. Transcribed by: Joan Lenzmeier, Recording Secretary Page 8 of 8 City of Centerville Council Meeting Minutes May 24, 2006 TimeSaver Off Site Secretarial, Inc. Page 9 of 8