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HomeMy WebLinkAbout2020-02-26 CC WS, Meeting & Closed Exec. Minutes - Approved COUNCILWORK SESSION, MEETING & CLOSED EXECUTIVE SESSION Wednesday, February 26, 2020 5:00/6:30 p.m. Pursuant to due call and notice thereof, the City of Centerville held a regularly scheduled City Council Work Session & Meeting on February 26, 2020 at City Hall, 1880 Main Street. COUNCIL WORKSESSION 1. CALL TO ORDER Mayor Paar called the meeting to order at 5:00 p.m. ROLL CALL PRESENT: Mayor Jeff Paar Council Member Russ Koski Council Member Michelle Lakso Council Member Matt Montain ABSENT: Council Member D. Love STAFF: City Administrator Mark Statz City Attorney Kurt Glaser II. ITEMS OF DISCUSSION 1. Metro I-Net JPA 2. Storm Water Fund 3. Rebranding Roll-out Plan III. ADJOURNMENT Motion by Council Member Koski, seconded by Council Member Montain to adjourn the City Council Work Session at 6:24 p.m. All in favor. Motion carried. COUNCIL MEETING I. CALL TO ORDER Mayor Paar called the meeting to order at 6:32 p.m. ROLL CALL PRESENT: Mayor Jeff Paar Council Member Russ Koski Council Member Michelle Lakso Council Member Matt Montain City of Centerville Council Meeting Minutes February 26, 2020 ABSENT: Council Member D. Love STAFF: City Administrator Mark Statz City Attorney Kurt Glaser II. PLEDGE OF ALLEGIANCE III. APPROVAL OF AGENDA Mayor Paar provided an opportunity for others to add or delete items. Motion by Council Member Koski, seconded by Council Member Montain, to approve the Agenda. All in favor. Motion carried. IV. APPOINTMENTS/PRESENTATIONS 1. None. V. PUBLIC HEARINGS 1. Assessment Hearing – 2020 Downtown Street & Utility Improvements Administrator Statz stated that this is the second of two required hearings for the 2020 Downtown Street & Utility Improvement project required by MN State Statues Chapter 429. This hearing is for special assessments. He stated that the results of the bids for the downtown area are in line with the Feasibility Study. At this hearing Council will take input on the assessment amounts, methodology, payment terms and the like. Individuals may also appeal their assessments and ask questions about how they were calculated. Administrator Statz read the City’s policy and explained how the public hearing will proceed. Administrator Statz introduced Ms. Kelly Schlegel, Stantec Consulting Services, Inc. Ms. Schlegel gave an overview of the project. She pointed out the streets that are involved with this project are a portion of Centerville Road by the school, Sorel Street, a portion of Heritage Street, Progress Road, and Goiffon Road. This project started in 2003 when the City put together a pavement management plan. These streets were identified as needing full reconstruction. Since then, the City has gone through a series of similar projects on other streets and this is the last remaining neighborhood to be reconstructed as part of this pavement management project. In addition to that, the City was successful in receiving a Community Development Block Grant (CDBG) from Anoka County to aid in the installation of municipal water services to those that income qualify. She stated that the roadways are in poor condition with many drainage issues, no curb, gutter and other underlying issues. The roadway itself was last improved in the 1970’s in conjunction with the sanitary sewer installation. There are currently Page 2 of 13 City of Centerville Council Meeting Minutes February 26, 2020 little to no watermain in the area and most of the properties do not have access to water. The existing roadway consists of about 2 to 4 inches of bituminous pavement over 1 to 9 inches of aggregate base. The proposed utility improvements would include full replacement of storm sewer. It will also expand it to better collect runoff/drainage and to accommodate future development. These improvements will also minimize the direct discharge of storm water to Centerville Lake to the west and route more run off to the south to thru the regional pond. Watermain installation is proposed within the project area and this would allow all properties access to municipal services. The proposed roadway improvements include full reconstruction, adding some concrete sidewalks along Sorel Street to east of Centerville Road, constructing hammer heads or a turn-around area on either end of Sorel Street as well as the east end of Heritage Street. She explain the typical roadway section and stated that City standard is 32’ wide but the proposed project is for 28’ wide. The City standards are 20 inches of sand, 8 inches of gravel with 3 inches of pavement on top. All streets would have concrete curb and gutter. She explained the reasoning behind the smaller roadway width proposed is due to a typical right of way in this neighborhood of only 50’ which is narrower than most neighborhoods throughout the city and the homes are set back from the roadway less than in other zoning districts. She stated that widening to 32’ would have a huge impact on existing driveways, front yards, etc. She stated that the existing roadway is currently 22’ wide. She also stated that surface water runoff from the impervious surfaces was taken into consideration for storm water management aspects. She stated that the proposal included five (5) parallel parking spaces along Sorel Street west of Centerville Road where the roadway is 34’ wide. The cost of the project came in where they expected it to be. Street improvements total cost of $1,585,940 which funding comes from the street fund and special assessments. The water main total cost would be $494,053 which funding would come from the Grant and the water fund. The Storm Sewer total cost is $341,415 and this funding would come from the storm sewer fund. The total estimated cost would $2,421,407. She stated noted that the estimated assessments would be approximately $285,039. The next step for council would be to award the contract to the contractor. Construction would be slated to begin in April or May and be should be completed by the end of the summer, September. This would not include the final layer of bituminous which would be completed in the summer of 2021. She stated that if was anticipated that completion would be in July of 2021. Administrator Statz explained MN State Statute Chapter 429 – Special Assessment process. This allows cities to assess all or a portion of the project costs to benefiting properties. Centerville has used this financing tool for over 30 years and for all street reconstruction projects. The City’s assessment policy does not specify the percentage to be assessed, does specify relative assessment rates of 100% front yard Page 3 of 13 City of Centerville Council Meeting Minutes February 26, 2020 (short side) and 20% side yard (long side). The benefit test is whatever assessment your property receives it will increase the value of your property. He stated the deferments are allowed by law if you are 65 years old and older, disabled, and/or active in the military. He stated that during this deferral period interest is accrued. He explained the procedure for appealing the assessment this evening and outlined the necessity to file with the district court within 30 days of the hearing if someone intended to follow through with the appeal. Administrator Statz stated that in previous projects in 2009 (Peltier Lake Drive) the homeowners were assessed averages of $6,884 and in 2013 (Center Street) were assessed $4,141. The proposed 2020 Downtown Street Assessment on an average residential lot would be approximately $5,298. The percentage of costs that were assessed in 2009 was 29% and the 2013 was 25%. He stated that the 2009 and 2013 project assessment terms were 15 years at 4% interest. The percentage of the project costs to be assessed for the 2020 Downtown is going to be at 20% with a 15 year term and interest rate at 3.5%. He stated that all projects are front-foot assessment basis per policy, which mean 100% of the front yard (short side) and 20% of the side yard (long side). Administrator Statz reported that the proposed 2020 assessments for commercial/institutional/vacant lots are as follows: 50% of the project costs and terms are also 15 years at 3.5%. He stated that the front-foot assessment is based per policy at 100% of the front yard (short side) and 20% of the side yard (long side). The amount of the assessments were mailed and these dollar amounts cannot increase. The amounts can be prepaid any time before the next year with full interest being applied. Administrator Statz stated that the City’s current water connection rules are that if you sell your home, add a major addition or your well falls into disrepair in an amount that exceeds $1,500 connection is required. Administrator Statz stated that the connection fees if you choose to connect to city’s water system would be $8,000 for Lateral Benefit Fee (connecting to watermain in the street), $1,850 Water Access Charge (WAC) (water tower, wells, etc.), approximately $450 for a water meter, and whatever it costs for the plumber to connect from the curb stop to your home. The costs can be assessed at the same terms as the street project and a grant is available for income qualifying households. He stated that the grant is only for owner occupied, single-family homes. He also stated that this information was forwarded to property owners in December with the deadline being extended to March 13. He stated that those that income qualify, would have their costs for hooking to city water paid in full. Council Member Koski stated that he understands that this is an area that has experienced street deterioration for some time, that assessments are difficult while living on a tight budget and felt that the project could no longer be delayed. He felt that with the opportunity for CDBG funding it was a good opportunity to commence the project. He understands that assessments are very difficult, would like to lower Page 4 of 13 City of Centerville Council Meeting Minutes February 26, 2020 them, but also understood that this is the last project proposed in the pavement management plan and it should be completed. Mayor Paar recapped what Administrator Statz stated. Mayor Paar also thanked the public for attending the public hearing and stated that the City does not like to assess it residents but at times has to make difficult decisions. He reviewed the procedures associated with public hearings. Mayor Paar opened the public hearing at 7:03 p.m. Mr. Jon Brickner, 1580 Sorel Street, asked whether the project’s time had to do with the proposed apartment development slated for Block 7. Council stated that the downtown road project was contained in the City’s Pavement Management Plan since 2003 and the Downtown Redevelopment Plan for approximately 30 years. Council also reiterated that the roadways in this project have deteriorated and are in horrible shape. They also stated that the project was previously considered with the Beard Group but with the economic downturn was placed on hold. Administrator Statz stated that the City is basically charging themselves for Block 7 to lower the cost for the residents. Mr. Brickner asked that the Council charge the developer of Block 7 for the road project. Mayor Paar stated that the project is not associated with the Block 7 development, contractor or developer. He stated that these are two (2) proposed projects that are in close proximity but are unrelated. He stated that the hearing is for street assessments only with a water connection component as it will then be available to those in the area. Discussion ensued regarding the proposed apartment building, both Administrator Statz and Mayor Paar stated that the public hearing this evening is regarding the assessments for the roadway. Council Member Lakso stated that if the project is delayed the risk is high that materials and labor costs will continue to rise. Mr. Brickner questioned who would repair the roadway if damaged by a developer and Administrator Statz stated that the developer would be held liable. Mr. Al LaMotte, 1643 Heritage Street, stated that he believed that the roadways were in need of repair, that he was in favor of the project but felt that residents should have a choice of maintaining their existing wells and not be required to hook to city water. Mayor Paar thanked Mr. LaMotte for his comments and explained that currently there are three triggers that would require connection to municipal water services: sale of the home, increase of square footage in excess of 33% of the home or the existing well falls into disrepair in excess of $1,500. Mr. LaMotte stated that he felt that it should be the responsibility of the new homeowner to connect rather than the seller. Mr. LaMotte stated that he had concerns regarding the amount of chemicals that are placed in municipal water compared to his existing well. Council Member Lakso stated previously the code required a connection by a sunset date and that has been modified allowing for several options/situations for mandatory connection. Page 5 of 13 City of Centerville Council Meeting Minutes February 26, 2020 Council Member Koski stated that installation of joint infrastructure at the time of total road reconstruction makes sense financially. He also stated that the service main needs to be paid for at the same time as the roadway project. Mr. Steve King, 1724 Sorel Street, felt that the interest rate for the assessments was high. Finance Director DeJong explained that if the City were to bond for the project they would pay approximately 1.55%. Mr. King felt that the application for CDBG fund was difficult to follow, lengthy and it did not appear that he would qualify. Mr. King stated that he agrees that the street project needs to be completed but desires to keep his existing well and he does not believe there is a benefit for connection at this time. Mrs. Stacy Brickner, 1580 Sorel Street, asked how the footage was derived for her property as they do not have 75 feet abutting the roadway. City Attorney Glaser stated that several properties were unique in the project area and that in this instance it was deemed equitable to utilize this number along with others that were similar in nature. Mrs. Brickner asked about parking during construction and was informed that during daytime hours it would be difficult to maneuver a vehicle in the area but after 7 p.m. each evening roadways would be passible. Mr. Jon Brickner stated that he agrees with Mr. King and that the assessment should increase the value of their homes. Mr. Brickner felt that the road project should be placed on hold until the property (Block 7) sold so that the developer could also be held accountable for paying some of the costs. Mayor Paar again reiterated that the street project was separate from the proposed apartment complex. Mrs. Brickner desired for Council to table their decision until such time as the proposed apartment complex is determined. Mr. King asked about the trail in front of his home and whether it would remain a dedicated trail/sidewalk. Administrator Statz stated that it mostly would remain a City trail. Attorney Glaser asked whether any residents needed assistance with filing an objection prior to the public hearing being completed. Motion by Council Member Koski, seconded Council Member Lakso to close the Public Hearing at 8:26 p.m. Mayor Paar called for an 8 minute break. VI. APPROVAL OF THE MINUTES 1. None. VII. CONSENT AGENDA Page 6 of 13 City of Centerville Council Meeting Minutes February 26, 2020 1. City of Centerville February 12, 2020 through February 26, 2020 Claims (Check #33307 through 33326, E-Checks #1481E through #14888E and Voided Checks #33306 & #33279 and Replacement Check #33327) 2. Centennial Lake Police Department Claims through February 18, 2020 (Check #13076-13088) & Payroll Check #13074-#13075 ) 3. Centennial Fire District Claims thru February 11, 2020 (Check #8742-8751) TASC & US Bank 4. Mediation & Restorative Services Request for Funding 5. Sprinkler System Maintenance – Public Works Building Mayor Paar provided an opportunity for Council to add or remove any item(s) to the consent agenda. Council Member Montain pulled Item #4 for clarification. Administrator Statz explained that Mediation & Restorative Services is a voluntary donation. He stated that they have been providing services to the City and its residents for numerous years and felt that they provide a service that has been utilized in the past without incurring fees. He also stated that they provide an opportunity for resolution of issues and they are an outside entity that assists in a fair compromise if individuals are open to using their services. Motion by Council Member Montain, seconded by Council Member Koski to Approve the Consent Agenda as presented. All in favor. Motion carried. VIII. OLD BUSINESS 1. 2020 Downtown Street & Utility Project a. Res#20 -0XX – Adopting Assessment Roll b. Res# 20-0XX – Awarding Contract Administrator Statz stated that Council may choose to adopt the Assessment Roll this evening and that one (1) resident was contesting their assessment. Attorney Glaser stated that staff will work with the individual(s) within the next 30 days and if there is a recommendation it would be brought before Council to consider at your next meeting. He stated if Council adopted the assessment roll this evening, it will commence the project. Council Member Montain stated that he felt that the project was a quality project and desired for it to go forward. He reported that the assessment roll is only 18% of the funding, was opposed to the grant but felt that individuals could utilize it if they qualified. He thanked members of the public for attending. He also reiterated that two (2) separate projects are being proposed at the same time and neither of them relate to each other. He felt that the assessments were fair and equitable. Council Member Koski felt that the interest rate could be lower and discussions with Finance Director DeJong took place. Page 7 of 13 City of Centerville Council Meeting Minutes February 26, 2020 Council Member Lakso also commented on the interest rate and stated that she felt that she would vote in favor of the Council’s majority. Mayor Paar briefly discussed Council’s decisions regarding the purchase agreement with Trident, the road project and interest rates. He also requested that Administrator Statz provide Council with the City Code regarding connection requirements and wells so that it could be placed on an upcoming agenda for discussion. Mayor Paar felt that the trail along Sorel Street should remain a trail rather than a sidewalk. Administrator Statz stated that language is contained in the resolution for consideration this evening regarding the interest rate charged for assessments and if Council desired to decrease it they would need to include same in their motion. He also drew Council’s attention to the fact that the assessment roll contained an error of $204 which should have been $2,040 off by a factor of 10 but did not reflect any assessment amounts proposed to residents. He also drew Council’s attention that PIN #23-31-22-23-0025 was thought to originally be owned by Church of St. Genevieve but is owned by City of St. Paul. He reassured Council that this error was caught and the proper legal notice was sent to them. Motion by Council Member Koski, seconded by Council Member Lakso to Adopt Res. #20-006 with the Amendments Noted by Administrator Statz and the Interest Rate Being Decreased to 2.5% rather than 3.5%. Mayor Paar asked the Finance Director the implications of lowering the interest rate. He stated that if interest rates increase throughout the 15 year term the Council will be holding debt of the individual assessments so if rates increase the City would suffer. Mayor Paar felt that a 1% decrease was not to be taken lightly but the City could incur the losses if rates were to increase in the future. All in favor. Motion carried. b. Res# 20-0XX – Awarding Contract Administrator Statz stated that the contractor desired to commence work as soon as frost was out of the ground and that if Council desired to adopt the resolution the contract would be awarded to A-1 Excavating, Inc. Motion by Council Member Lakso, seconded by Council Member Koski to Adopt Res. #20-007 – Awarding Contract to A-1 Excavating, Inc. (Low Bidder). All in favor. Motion carried. 2. LaMotte Park Storm Water Irrigation Project Administrator Statz stated the city was awarded a grant from Met. Council to expand the irrigation system at LaMotte Park which utilizes storm water to irrigate the ballfields. He stated that the City has earned storm water credits which allow the City the privilege of not being required to construct ponds and rain gardens within the Downtown Street Project Page 8 of 13 City of Centerville Council Meeting Minutes February 26, 2020 whereas similar projects have had those requirements. He stated that the proposed expansion would consist of adding three (3) additional “gun-style” heads at LaMotte Park; a traditional irrigation system to irrigate the inner portion of the park around the infields, a traditional irrigation system to irrigate Hidden Spring Park, as well as alternates to provide irrigation to the St. Paul Regional Water Service property just north of Hidden Spring Park and the southwesterly portion of the St. Genevieve’s Church property just north of LaMotte Park. He stated that the proposed irrigation improvement will be utilized to obtain storm water mitigation credits from the Rice Creek Watershed District for the planned 2020 Downtown Street and Utility project, as well as future redevelopment within the downtown area. The City has received a grant from the Met. Council for $100,000 to fund the majority of the project costs and it would require the City to fund a minimum of $33,000 in matching funds. a. Approve Plans b. Authorize Advertisement for Bids Lengthy discussion ensued. Motion by Council Member Lakso, seconded by Council Member Koski to Approve the Plan and Authorize Advertisement for Bids for LaMotte Park Storm Water Irrigation Project as presented. All in favor. Motion carried. Mr. King asked whether the culvert in the downtown area drains to the ponds. Administrator Statz stated that the ponds in the area are not large enough to treat the water prior to running off to Centerville Lake. He stated that the City installed a 42” pipe to drain the water to the ponds. He also stated that this would be another good reason to install the irrigation system which would maximize the system. IX. NEW BUSINESS 1. Resolution #20-0XX Supporting Infrastructure Accountability Administrator Statz explained that the League of Minnesota Cities and other organizations have been lobbying the legislature to pass a law which would allow some mechanisms to charge developers for road improvements necessitated by their developments, much like exist for sewer, water, storm water and other similar systems. Since there has not been this explicit authority in the past, cities have made other attempts to collect the funds and have been successfully sued on several occasions. This leaves cities with alternatives such as special assessments, burdening existing taxpayers, or other options which are either untenable, unfair or both. Cities are committed to fair legislation that requires engineering studies to justify fees like other utilities. Additional discussion took plan and no action was taken. Page 9 of 13 City of Centerville Council Meeting Minutes February 26, 2020 2. 2020 Goals Administrator Statz stated that he desired to follow up on Council’s 2020 Goal Setting Retreat and formalize and adopt their goals. He stated that Council reviewed their goals from the previous year which included succession planning. He suggested that modifying the term Succession Planning to Organizational Resilience which would include if a staff member is out for an extended period of time, computer systems become nonfunctioning or infrastructure failures. He stated that he desired to continue this discussion as to consider how processes are handled. Mayor Paar stated that Council did discuss the item, believes that Organizational Resilience is all encompassing and should have subcategories along with others. Council Member Lakso suggested that a “people first” approach should be a priority with economic development-community building being a subcategory. She also suggested that under Organizational Resilience all departments (police, fire, etc.) be contained. She stated that if something within this link were to fail the City would fail. Mayor Paar clarified that she desired all emergency services including the computer server. Motion by Council Member Lakso, seconded by Council Member Montain to approve the 2020 Goals with Changes Discussed. All in favor. Motion carried. X. COUNCIL/ADMINISTRATOR ANNOUNCEMENTS 1. Administrator’s Report Mayor Paar stated that Administrator Statz emailed his Administrator/Engineer Report and provide an opportunity for Council to ask questions. Administrator Statz stated that both residential developments (Bayview Villas and Old Mill Estates) are in full swing and the contractors have been cooperative. He stated he has discussed a potential bakery and other inquires for development. 1. Council Reports a. Lakso i. Parks and Recreation Committee – No report was given. ii. Centennial Fire District Steering Committee – Council Member Lakso reported that a special meeting was had to determine whether to go forward with a Request for Proposal to determine the future of the Fire District and its structure. Discussions included duty crews, hiring or filling the Assistant Chief position keeping the Training Chief and existing Chief in their positions. It was determined to continue the current structure until the RFP was completed. iii. Anoka County Fire Protection Council – No report was given. Page 10 of 13 City of Centerville Council Meeting Minutes February 26, 2020 b. Love - Absent i. Police Governing Board – ii. Economic Development Authority – iii. Emergency Police Governing Board Meeting – c. Koski i. Planning & Zoning Commission – No report was given. ii. Fire Steering Committee – Council Member Koski reported that the Committee discussed the opportune time with the Assistant Chief’s retirement that an Organizational Study be completed of the department and staffing level to determine optimum efficiency. Council Member Koski thanked the Centerville Lions for again providing the public with their Annual Ice Fishing Contest. He stated that the event was a success with a wonderful opportunity for the community to come together. He thanked all who participated. Council Member Koski reported that Assistant Fire Chief Bruder would be retiring on February 28 and a reception would be held on March 2 at Station 3 from 5:30 p.m. to 8:00 p.m. He thanked Mr. Bruder for his many years of service. d. Montain - i. North Metro Telecommunications Commission - Council Member Montain reported that the Commission would be releasing the previous year’s franchise fees to member cities shortly. He stated that both Comcast and Century Link’s violations of their franchise agreements with the Commission/Cities and a stay on how franchise fees are calculated. He stated that additional discussions would take place regarding this item. He reported that Century Link is completing their procedures for ceasing the delivery of Prism services. e. Paar – i. Personnel Committee – Mayor Paar reported that he and Council Member Montain met with Attorney Glaser the previous week to discuss Administrator Statz’s review. He stated that following the Regular Council Meeting a Closed Session would be held for further discussion and possible action. ii. Police Governing Board – No report was given. Page 11 of 13 City of Centerville Council Meeting Minutes February 26, 2020 iii. Other Mayoral Reports – Mayor Paar stated that he attended the recent EDA meeting where discussions were held regarding rebranding and a new logo for the City, banners, entrance signage and the water tower. He stated that Mr. Mike Brass presented a design of a business for the 1737 Main Street parcel which included apartments on the upper floor and commercial on the ground floor. They discussed parking for the parcel and the possibility of purchasing or utilizing an abutting parking lot with the potential for asphalting it for the owner in exchange for use. XI. RECESS TO CLOSED EXECUTIVE SESSIONS The following portion of the meeting is closed to discuss two separate matters. The first is protected by the attorney-client privilege pertaining to a lawsuit commenced by John C. Kelly & Jolene R. Kelly against the city. The closure is pursuant to Minnesota Statutes, Section 13D.05 Subdivision 3(b). The second is closed to evaluate the performance of City Administrator/Engineer Mark Statz. The closure is pursuant to Minnesota Statute Section 13D.05, subdivision 3(a). Mayor Paar recess to a closed session at 10:00 p.m. CLOSED EXECUTIVE SESSION I. CALL TO ORDER 1. Roll Call Council Member Montain left the meeting prior to roll call for this executive session. Present were Mayor Paar, Council Members Lakso and Koski. II. ITEMS OF DISCUSSION 1. John C. Kelly & Jolene R. Kelly vs. City of Centerville III. ADJOURNMENT CLOSED EXECUTIVE SESSION I. CALL TO ORDER 1. Roll Call Present were Mayor Paar, Council Members Lakso and Koski. II. ITEMS OF DISCUSSION Page 12 of 13 City of Centerville Council Meeting Minutes February 26, 2020 1. Performance Review, City Administrator Mark Statz III. ADJOURNMENT Motion by Council Member Koski, seconded by Council Member Lakso to adjourn the Closed Execution Sessions and reconvene the regularly Scheduled Meeting at 10:40 p.m. All in favor. Motion carried. Attorney Glaser announced that in Closed Session, Council moved to adopt the proposed contract in the packet on a unanimous vote. During the Closed Executive Session the following action occurred, Motion by Mayor Paar, seconded by Council Member Koski to Adopted the Proposed Contact for the City Administrator. All in favor. Motion carried. COUNCIL MEETING (Continued) XII. RECONVENE TO REGULARLY SCHEDULED COUNCIL MEETING XIII. ADJOURNMENT Motion by Council Member Koski, seconded by Council Member Lakso to Adjourn the February 26, 2020 City Council Meeting at 10:45 p.m. All in favor. Motion carried. Respectfully submitted by Kris Sweeney, Sr. Account Clerk. Page 13 of 13