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HomeMy WebLinkAbout2020-09-23 WS & CC Minutes - Approved Approved CITY OF CENTERVILLE CITY COUNCIL WORK SESSION & COUNCIL MEETING September 23, 2020 5:00 p.m./6:30 p.m. Pursuant to due call and notice thereof, the City of Centerville held their regularly scheduled City Council Work Session & Council Meeting on September 23, 2020 via Zoom Videoconferencing at: https://zoom.us/j/478824301, Meeting ID: 478 824 301 with audio only available at: 312- 626-6799. The meeting was also live streamed by North Metro TV. WORK SESSION I. CALL TO ORDER Mayor D. Love called the work session to order at 5:00 p.m. PRESENT: Mayor D. Love Council Member Russ Koski Council Member Matt Montain Council Member Tom Wilharber ABSENT: Council Member Michelle Lakso STAFF: City Administrator Mark Statz Finance Director Bruce DeJong *Note that “present” is construed to mean that the noted individuals were visibly and audibly present on the videoconference call. II. ITEMS OF DISCUSSION 1. Preliminary General Fund Budget Brief discussion took place regarding Local Government Aid, the possibility of not receiving aid in 2021, the loss of potentially $15,000 and that additional discussion would take place along with additional information being brought forward prior to the levy needing approval. Administrator Statz stated that Item #3 would affect the Proposed Budget and requested that the item be discussed at this time. 2. & 3. City Hall Renovation/ (CARES Act Funding) Administrator Statz stated that he has requested a proposal from Crawford Merz for remodeling the administrative offices. He stated that the quotes were not available at the time of putting together the packet but now have been received. Administrator Statz stated that the quotes exceeded funding provided by the CARES Act but he desired to present two (2) options which contained scaled down versions of the original proposal to fit within the $75,000 available from CARES funding or a full scope of approximately $150,000. He explained that CARES Act Funding was budgeted to several entities (Centennial Lakes Police Department, Centennial Fire District and others) to assist with staffing, sanitization, etc. He also City of Centerville Council Meeting Minutes September 23, 2020 discussed the City’s intent to provide funding to the EDA for the Blue Sign program, CenterStage and paper advertisements along with staff salaries associated with COVID-19 related expenses. Administrator Statz discussed the options for renovation, areas that could receive modifications (staff offices, A/V room, kitchen area, enlarging the Administrator’s office to include a conference area, funding, scaled down versions, etc.) Discussion ensued regarding employee separation, use of existing space, emergency exit and windows, needed improvements for several years, investing in the building, timing and funding, completing a renovation correctly, being conservative and waiting for an additional round of funding, expenses being available for the November 15 CARES Act Fund reporting deadline, and existing CARES Act expenses of employee’s staff time. 4. Liaison Stipend Council Member Montain requested to speak of the current North Metro Telecommunication Committee stipend which he has received by serving on the Committee for the last few years. He stated that he has always donated the money back to the Parks & Recreation Committee and he decided not to run for Council in 2021. He stated that the Commission issues a stipend for securing cable, reimbursing travel expenses associated with meetings, etc. He stated that in 2020 most meetings were held via Zoom. He stated that he receives $135/3 months and desired for the donation process to go forward as a policy. He stated that most meetings are in the same location (Spring Lake Park) and cable/internet has become a necessity for work/meetings/day-to-day operations, etc. Council Member Koski stated that he appreciated Council Member Montain’s honorability by giving the money back to the City. Several members of Council were unaware and unsure if it has been given in the past but thanked Council Member Montain for his donation(s) back to the City. Mayor Love stated that as Mayor, he attends numerous meetings, deducts his mileage on his taxes which he feels is sufficient. Consensus of Council was that the Commission could consider not providing a stipend, reimburse for mileage or it was the appointed member’s choice of utilizing the money to offset cable services. Mayor Love stated that the appointee could not be mandated to not accept the stipend or donate it back to the City. Mayor Love provide an opportunity for Council to discuss additional items. No member came forward. III. RECESS Mayor Love recessed at 6:00 p.m. and adjourned the Work Session. COUNCIL MEETING I. CALL TO ORDER Mayor D. Love called the meeting to order at 6:34 p.m. ROLL CALL* Page 2 of 10 City of Centerville Council Meeting Minutes September 23, 2020 PRESENT: Mayor D. Love Council Member Russ Koski Council Member Matt Montain Council Member Tom Wilharber ABSENT: Council Member Michelle Lakso STAFF: City Administrator Mark Statz City Attorney Kurt Glaser Finance Director Bruce DeJong *Note that “present” is construed to mean that the noted individuals were visibly and audibly present on the videoconference call. II. PLEDGE OF ALLEGIANCE III. APPROVAL OF AGENDA Mayor Love provided an opportunity for others to add or delete any items. Motion by Council Member Koski, seconded by Council Member Montain to Approve the Agenda as Presented. A roll-call vote was taken. Mayor Love and Council Members Koski, Montain, & Wilharber voted in favor. Motion carried. IV. APPOINTMENTS/PRESENTATIONS 1. None V. PUBLIC HEARINGS 1. None VI. APPROVAL OF THE MINUTES 1. August 12, 2020 City Council Meeting Minutes Council Member Koski questioned whether the minutes accurately reflected the discussion that was had regarding Special Assessment Agreements and sealing wells. He desired for staff to review the meeting video to ensure that the discussion truly was accurate and that individuals were fully educated about the necessity of sealing their wells or not. Administrator Statz stated that it was discussed that the agreements contained separate lines regarding sealing or not sealing their wells but staff would review the video. Upon staff review, minutes remained the same as submitted. Clerk Bender stated that the minutes should reflect that the meeting started at 6:30 p.m. and that there was no work session prior to the meeting. Page 3 of 10 City of Centerville Council Meeting Minutes September 23, 2020 Motion by Council Member Koski, seconded by Council Member Montain to Approve the August 12, 2020 Meeting Minutes with the Above Mentioned Modification. A roll-call vote was taken. Mayor Love and Council Members Koski, Montain, & Wilharber voted in favor. Motion carried. VII. CONSENT AGENDA 1. City of Centerville Claims through September 23, 2020 Claims (Check #34232- 34261) & (1579E-1584E) 2. Centennial Lake Police Department Claims through September 14, 2020 (Check #13392-1313408) & Payroll Check #13397-13398) 3. Centennial Fire District 2021 Proposed Budget 4. Centennial Lakes Police Department 2021 Proposed Budget 5. Pay Request #1 – LaMotte Park Irrigation System Mayor D. Love provided an opportunity for Council to add or remove any item(s) to/from the consent agenda. Motion by Council Member Montain, seconded by Council Member Koski to Approve Consent Agenda as Presented. A roll-call vote was taken. Mayor Love and Council Members Koski, Montain & Wilharber voted in favor. Motion carried. VIII. OLD BUSINESS 1. Resolution #20-023 - Adopting the Preliminary 2021 General Fund Budget Administrator Statz explained that every year at the end of September the City was required to adopt a Preliminary Budget & Levy. He stated that this information is forwarded to the State of Minnesota for their approval to spend and Anoka County as this is what will be charged through taxes for property owners within the City. He stated that the City is taxing the same as what we are budgeting meaning a balanced budget of 2.7 million dollars. He also stated that staff and Council have developed a balanced budget with a slight increase in the tax levy from last year. Finance Director DeJong stated that there was a modest increase in levy overall (slightly under $24,000 or .9%) higher than the property taxes levied in 2020. He pointed out several items that were discussed in the memorandum presented to Council and stated that it is a responsible budget in the short term and long term, fully funding operations, with contingencies for Capital Projects ($50,000). He stated that if contingency is not needed, it can be removed from the levy for the following year. He stated that the City has a strong tax collection rate (99%) over the past three years and explained that with COVID or economic changes with the ability of resident’s being able to pay their taxes, the City has sufficient fund balances to cover short-term drops (not generally over 2%) for the next few years. He stated that it is not just the General Fund but the Water and Sewer Funds also. He also stated that there are a lot of cash reserves that are invested over the next five (5) years earning reasonable interest rates that meet cash flow projections which show the City earning 1% over the next several years. He reported that the State is experiencing financial challenges and there may be a move to reduce Local Government Aid payments in December. He stated that if that happens, it is believed that the City is more than sufficiently Page 4 of 10 City of Centerville Council Meeting Minutes September 23, 2020 covered for a decrease of up to 20%. He stated that if it is more than that, Staff would bring it before Council for addressing the shortfall. Finance Director DeJong stated that the City has strong cash flow, good investments spread out at decent rates, is investing responsibly, has reviewed their Enterprise Funds ensuring that there are sufficient cash levels to fund the City’s operations and ensuring that if funds drop below the targeted level of Fund Balance, there is a plan for raising them back up with modest changes in any additional fees. He commended the Council for putting together a very responsible budget and being very respectful of what is going on by having a Levy increase of less than .9%. Mayor Love stated that the budget is in very good shape due to planning by Staff and Council’s over the years and that he is very proud of that fact. Council Member Koski thanked Finance Director DeJong for the explanation and presentation. He asked whether the City’s investments were guaranteed/variable. Finance Director DeJong stated that they are fixed rate interest investments and that they are generally CD’s from commercial banks which are covered by FDIC limits. He also stated that staff does not invest more than $250,000 in any given CD in case there is a problem with the bank. He stated that the CD’s are spread out over multiple years, coming due at different times, allowing the ability to take advantage of the short-term increases in the market rate(s). He stated that his most recent investment was at .8% interest which is slightly below the 1% interest used in projected calculations. He reported that this is variable as several investments exceed the 1% interest rate. He stated that the City is in good shape. Council Member Koski briefly mentioned an article that he had read in the League of MN Cities, Minnesota Cities Contents (Sept./Oct. 2020) edition, Cities Brace for Financial Impact of COVID-19 and stated that it was very interesting in the environment that we are in and that the City of Centerville is sitting in very good shape. He recommended the article. He also stated that the City has two (2) levies; one (1) for the General Fund and one (1) for Debt Services. He noted that the debt service is what the City is paying for bonds/loans. Finance Director DeJong commented that the debt services is for principle and interest on funds that the City has borrowed. Council Member Koski stated that $378,189 is paid yearly. Council Member Koski desired to inform the public that the City has paid/refinanced these bonds to decrease its outstanding debt over the years and he appreciates Council’s due diligence in decreasing its debt. Council Member Montain stated that through the discussions he was content at where the Preliminary Budget and Levy are at. Council Member Wilharber stated that he echoed Council Member Koski’s comments regarding the City’s debt levels and complimented Staff, previous Council’s and the current Council’s commitment for decreasing these levels and paying cash for projects. He stated that this was much appreciated as a Council Member and as a resident of the City. Mayor Love thanked staff for the memorandum and stated that it is really good for the City to look at the future and its possibilities. He stated that it is good to know that the City is in good shape and knowing that the City will be able to withstand potential difficult times associated with COVID or other issues that may impact the City. Mayor Love desired for the public to know that numerous Work Sessions were held where robust discussions have taken place regarding this item and that is the reasoning for limited discussion this evening. He stated that the “fine tuning” and “line-by-line” discussions took place at that level. Page 5 of 10 City of Centerville Council Meeting Minutes September 23, 2020 Motion by Council Member Koski, seconded by Council Member Wilharber to Adopt Res. #20-023 - Adopting the Preliminary General Fund Budget & Tax Levies for 2021 as Presented. A roll-call vote was taken. Mayor Love and Council Members Koski, Montain, & Wilharber voted in favor. Motion carried. 2. City Hall Renovation – Change Order #1 – Office Area COVID Improvements Administrator Statz stated that the presented Change Order #1 – Office Area COVID Improvements was discussed earlier in the work session. He stated that the contractor, Crawford Merz, who is completing the Council Chambers and Lobby areas of the City Hall renovation project had submitted costs associated with the addition of the office area. He stated that Staff has reviewed the costs and stated that the City would be foregoing most funding for reimbursement of staff time ”direct/soft costs” associated with COVID-19, (duties that need to be completed due to COVID-19 and not generally completed by staff: i.e., sanitizing of counters and doors, accounting and training for COVID-19 expenditures, etc.) He stated that Change Order #1 would utilize a large amount of the City’s portion of CARES Act Funding. He also stated that the renovation would make the City Hall more “COVID” friendly, safer and healthier for employees and the public providing separation. Administrator Statz shared the existing floor plan and a revised floor plan for Option #1 showing the removal of the current (2) back offices and relocating them, adding one (1) additional office, moving the kitchen and A/V room, adding an egress emergency door, and enlargement of the Administrator’s office to include a conference area which would cost $150,000. He reported that this is in addition to the lobby and Council renovation. Mayor Love stated that this was discussed earlier during the Work Session. Council Member Montain stated that because if involves CARES Act Funding he voiced that he was conservative on the spending of these funds, he felt that the project would be going forward, but was concerned if there was a split vote would it affect additional funding in the future. He stated that he was not against the project or CARES Act Funding. He also stated that the project was viable, well thought out, looked at thoroughly and done within a budget which he likes. Finance Director DeJong stated that it does not need to be a unanimous decision. Mayor Love thanked Council Member Montain for his thoughts, opposition and stated that they are valued. Council Member Wilharber felt that it was a well laid out plan with the emergency exit, moving of the A/V room, a good proposal and thanked staff for compiling the information. Mayor Love stated that he again is stating that the City is eligible to submit staff time for CARES Act Funds, he would prefer to have “hard costs” as these feel more realistic and with this project these are expenditures for real things that would be benefiting our City and the health of our staff. Motion by Council Member Wilharber, seconded by Council Member Koski to Approve City Hall Renovation – Change Order #1 – Office Area COVID Improvements as Submitted. Administrator Statz requested the inclusion of in an amount not to exceed $150,000. Council Member Wilharber and Council Member Koski Accepted the Friendly Amendment. A roll call vote was taken. Council Member Montain – Nay, Mayor Love, Council Member Koski & Council Member Wilharber in favor. Motion carried 3/1. 3. LaMotte Park Irrigation System - Change Order #1 – Meter and Minor Modifications Page 6 of 10 City of Centerville Council Meeting Minutes September 23, 2020 City Administrator Statz stated that the contractor is in the middle of the project to increase the size and capacity of the City’s existing Storm Water Reuse System located at LaMotte Park. He stated that the system is being expanded to the Hidden Spring Park, Church of St. Genevieve and the City of St. Paul’s properties to gain additional storm water credits allowing future development of the downtown area allowing development without the need for construction of storm water ponds. He also stated that several months ago, it was considered to place a meter on the system allowing for accurate documentation of gallons pumped. He explained that staff had been researching meters, vendors and planned on placing a meter on the existing system to ensure accurate pumping levels along with the Rice Creek Watershed’s request to do so. He reported that once the project was started, discussions took place with the contractor to recommend metering equipment. He stated that staff felt that a third party vendor was not an appropriate option and that the contractor’s recommendation for metering equipment which is less expensive than staff’s research would integrate into the existing system providing for a more “turnkey” operation. Administrator Statz stated that there were minor modifications that needed to be made as with any project once it is started. Council Member Koski stated that the meter had not been included in the original bid because a preferred vendor had not been agreed upon and why wasn’t a number placed in there to cover this. Administrator Statz stated that we could have included as an allowance for the item; however staff overlooked its inclusion. He stated that the research had been completed, paused and then when this project came forward, it was an oversight. He also stated that the equipment is a bit of a specialty item, but the contractor is very comfortable with the equipment recommended and slated for installation. Council Member Koski stated the only reason he brought the item up was there are surprises and he understands that things come up but would like to limit them and have them up front if possible. Discussion ensued regarding measuring the amount of water pumped previously, calculations for the amount of pressure versus run time, metering proposed for accuracy, Rice Creek Water Shed’s concerns, potential for retracting credits for years, etc. Council Member Montain asked what if the City is under stating or over stating gallons pumped, if it is in the City’s favor, and developable land. He also stated, but what if less than thought and the City’s numbers do not work in its favor. Administrator Statz stated he would rather know now than being in a dispute over the next development with Rice Creek Watershed District. Council Member Montain stated that a bigger concern is to do our due diligence, to be the most efficient and effective that we can and stated that he has appreciation for the project. Council Member Wilharber stated that the overall project was great, by using water and spraying it out, that the existing system has been installed for over 10 years, its importance, that the costs associated with metering and minor modifications were well thought out for having an official record. Motion by Council Member Wilharber, seconded by Council Member Montain to Approve the LaMotte Park Irrigation System - Change Order #1 – Meter and Minor Modifications as Presented. A roll call vote was taken. Mayor Love and Council Members Koski, Montain, & Wilharber voted in favor. Motion carried. IX. NEW BUSINESS 1. None. X. COUNCIL/ADMINISTRATOR ANNOUNCEMENTS Page 7 of 10 City of Centerville Council Meeting Minutes September 23, 2020 1. Administrator’s Report City Administrator highlighted that trees were being removed on the Atlas Villa site along Main Street, with plans anticipated being submitted shortly. He reported that the Anoka County Business & Non Profit Relief Grants Application period had closed, they were widely undersubscribed with approximately 500 grants available for $10,000 each; with only 300 applicants. He stated that what this means is that some applicants may receive up to $20,000 instead of $10,000. He also stated that he felt that the City promoted the program well with a direct mailing, social media and email blasts. Administrator Statz stated that he and the Mayor had met with Centennial School District representatives regarding an expansion/remodel of the Centerville Elementary which would work within the existing building footprint of the building. He stated that no property would be acquisitioned due to this project. He stated that the school has proposed adding additional classrooms and would be completed with funds when a debt levy is removed. nd Administrator Statz reported that the Old Mill Estates, 2 Addition, utilities were complete and road work is commencing. He also reported that some of the Bayview Villas homes have received sod. He discussed the Downtown Street project stating that curb was to be installed next week with all roads being built. He stated that paving would be the following week. Administrator Statz stated that there were openings for the Adopt A Garden Program and that several residents had already volunteered. He reported that both the Centennial Lakes Police Department and Fire District opted out of participation in Night to Unite activities due to COVID- 19. He stated that as long as individual property owners were within the Governor’s guidelines, they could participate in their own events. He reported that this was a very difficult decision to make and that it was in collaboration with other communities and the County. He stated that the decision was made not to endanger the public or public safety staff with gatherings. City Attorney Glaser stated that the Administrator’s Performance Evaluation was coming due and it was desired to complete it prior to the New Year. He stated that Mayor Love and Council Member Montain would be meeting at the end of November and the item was anticipated to be before Council by their first meeting in December. Council Reports a. Lakso – Council Member Lakso was absent i. Parks and Recreation Committee – No report was given. ii. Centennial Fire District Steering Committee – No report was given. iii. Anoka County Fire Protection Council – No report was given. b. Wilharber – i. Economic Development Authority – Council Member Wilharber stated that he was absent from the meeting. Page 8 of 10 City of Centerville Council Meeting Minutes September 23, 2020 c. Koski – Council Member Koski asked that Administrator Statz elaborate on the sudden passing of the City of Fridley’s Fire Chief and Co-Chief Streich assisting with duties. Administrator Statz stated that all Anoka County Fire Departments are lending a helping hand and redistributing resources to cover their needs during this difficult time. Council Member Montain stated that a crew covered for them for a day and that the Centennial Fire District is lending assistance. Council Member Koski desired to forward his condolences to the family and Department. i. Planning & Zoning Commission – No report given. ii. Centennial Fire District Steering Committee – No report given. c. Montain – i. Police Governing Board – Council Member Montain reported ii. North Metro Telecommunications Commission – Council Member Montain reported filming fall sports within social distancing guidelines had commenced. He reported that the Commission discussed PEG and FF fees being lower than thought anticipated, but within range for the 2021 Budget. He stated that they discussed CARES Act and COVID Funding. He stated that the Commission was in line with other cities in desiring to make their facility more safe and efficient for the public and staff by installing touchless doors, faucets, etc. He also reported that the Commission is working with Comcast on the Franchise renewal and it was anticipated that something would be brought before Council by the end of the year or beginning of 2021. d. Love – Mayor Love stated that the Parks & Recreation Committee has had an opening for quite some time, the City continues to advertise it and if anyone in the audience desired to become a part of the Committee to contact City Hall. He also stated that Administrator Statz earlier discussed a business email listing and stated that the City also has a resident email listing. He reported that if anyone desired to be placed on either or both of the lists to visit the City’s web site to apply. i. Police Governing Board – No report given. ii. Economic Development Authority – Mayor Love stated that the EDA did meet the previous week and discussed the current budget with the Interstate Blue Sign program/CenterStage Program/Newpaper Ads and the lack of need for a City/EDA CARES Act Funding. He stated that the EDA discussed a grant that was submitted for a downtown business determining that additional information was needed. He stated that the City Administrator provided a definition and overview of Tax Increment Financing (TIF) as it related to a proposal previously received for the Downtown/Block 7 area development. iii. Other Mayoral Reports – Mayor Love stated that Administrator Statz had reported about a meeting with the Centennial School District, he Page 9 of 10 City of Centerville Council Meeting Minutes September 23, 2020 thanked them for discussion their plans with the City and having the ability to expand the building without raising the school levy. He thanked Troop 136 and Cub Scout Pack 432 along with the City’s Parks & Recreation Committee Member Brian Peterson for planning and organizing Outdoors Activities at LaMotte Park the previous Saturday and he stated that he was amazed at the large attendance. He also stated that Movie in the Park was the same evening at LaMotte Park where Toy Story 4 was shown. He stated that he was also impressed that so many individuals took advantage of the events that were put on by the Parks & Recreation Committee and thanked both the Scouts and the Committee. XI. ADJOURNMENT Motion by Council Member Wilharber, seconded by Council Member Montain to Adjourn the Regularly Scheduled Council Meeting at 7:24 p.m. A roll-call vote was taken. Mayor Love and Council Members Koski, Montain & Wilharber voted in favor. Motion carried. Respectfully submitted by City Clerk, Teresa Bender. Page 10 of 10