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HomeMy WebLinkAbout2020-12-09 CC WS, CC & Closed Exec. Meeting Minutes - Approved Approved CITY OF CENTERVILLE CITY COUNCIL WORK SESSION, COUNCIL MEETING & CLOSED EXECUTIVE SESSION December 9, 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 December 9, 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 Michelle Lakso Council Member Matt Montain (joined at 5:48 p.m.) Council Member Tom Wilharber ABSENT: None 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. ITEMS OF DISCUSSION 1. Rehbein Black Dirt Interim Use Permit Administrator Statz stated that last evening, the Planning and Zoning Commission held a Public Hearing on the extension of an Interim Use Permit (IUP) for Rehbein Black Dirt. At the hearing, thst staff presented information on the pile of dirt between 20 and 21 Avenues which has been in existence for 15+ years. Several years ago, the city took action to require the pile to be governed by an Interim Use Permit since it was not allowed under City Code. The IUP had an expiration date, by which the dirt was required to be moved. When that date came and the dirt was not gone, a second IUP was issued, with tightened restrictions. At this time, that second IUP is about to expire and the dirt, again, has not been moved. Therefore, the commission is forced to decide on whether or not to again extend the permit. In the end, the Planning and Zoning Commission proposed to issue a new, 2-year, IUP with a Letter of Credit (LOC) required at the end of the first year. The LOC would be based upon $2/cubic yards of material stockpiled on site. The recommendation of the P & Z Commission was to issue the new IUP with same terms as the last one, but adding the LOC requirement. City of Centerville Council Meeting Minutes December 9, 2020 The commission did take comment from the public, but comments were minimal and expressed varying opinions. Attorney Glaser spoke about the economic incentive built in to the IUP with the LOC and mentioned that the landowner is in agreement with the terms of the proposed terms. Council Member Koski, liaison to the Planning and Zoning Commission said that a lot of good discussion took place and for the most part all agreed with LOC requirements. It was noted that there were comments made regarding whether the city should be telling property owners what they can do with property. Mr. Koski also questioned whether the $200,000 would be enough to move the material off the site. Administrator Statz stated that the intent would be to simply level the material out, so the costs would be much less than hauling it out. Council Member Lakso thought there was fair enough notice built into the IUP and was happy that it addresses the important issues. Administrator Statz said the intent was to develop the land into industrial uses similar to Distribution Alternatives in Lino Lakes. United Properties held an option on the land, but it had expired. Council Member Lakso was comfortable with the recommendation. Council Member Wilharber asked whether there were any complaints regarding the dirt pile. Administrator Statz stated that for the most part no, but when complaints are received, the Rehbein’s are very responsive to requests, such as to clean streets, fix erosion control, etc. Mr. Wilharber further asked about any issues with the watershed. Mr. Statz stated that several years ago the original IUP contained language requiring the submittal of a Storm Water Management Plan (SWMP). After some discussions with the Rehbein’s on this issue, they requested an opinion from the Minnesota Pollution Control Agency (MPCA). The MPCA decided since the dirt operation was not an active construction site and was not one of their identified industrial uses which required a permit, no SWMP was needed. For the next IUP, specific erosion control measures were incorporated, without requiring a SWMP. Nothing about their operation is regulated through the watershed, again because it is not an active construction site or development. Council Member Wilharber said this issue has been going on way, way back and as Council Member Lakso said, we may have missed chances for development due to the pile being there. He stated that he would not likely be in favor of extending and would probably be voting against. Mayor Love would like to have the property developed but understood that it is not the city’s role to push someone into development. However, the Black Dirt business is not allowed under city code and an IUP with limited duration has been a fair compromise. The issue as he sees it is that we do not have a practical way to shut them down and remove the pile if they do not comply with the permit terms. He felt the LOC solution was the best way to do that. Council Member Koski noted that the commission reviewed some minor IUP violations that had largely been addressed already, but will be correcting the remaining items in the spring. Discussion ensued regarding the property being valued at $3/sq. and about 7 million worth total. Administrator Statz said it was not likely to go tax forfeit, however, if the market crashed on industrial land and when you have Forest Lake giving away similar land for $1 it seems prudent to be protected in a worst-case scenario. Council Member Koski asked if we are collecting for hauling dirt out of the site. Administrator Statz stated that the city collected roughly $10,000 - $15,000/year. Mr. Koski struggles with the idea of pushing a business out, but would love to see Page 2 of 19 City of Centerville Council Meeting Minutes December 9, 2020 a new business use the site for what it is zoned. Council Member Koski is concerned that the City does not get carried away and push businesses out for no reason. Mayor Love said he is glad we are having a conversation about a business that is abiding by the rules and not a business that is being a bad neighbor. Administrator Statz reiterated that the IUP does not mention a requirement to develop or sell, just to flatten the dirt pile. 2. Final Budget Review Finance Director DeJong reviewed the final budget one last time before adoption tonight. Staff feels we are ready and has included a presentation with packet. Several graphics were added to aid in the understanding of the budget. Mr. DeJong asked if there were any questions he could answer. Mayor Love thanked staff and stated that he liked the Executive Summary. He stated that he feels that the budget is fiscally responsible and future thinking is critical. 3. Block 7 Redevelopment Concept Plans Administrator Statz shared that the Planning and Zoning Commission saw a nice presentation from Apollo Development regarding a concept for 20 row-style townhomes on Block 7. It was communicated to Apollo that the city was unlikely to offer Tax Increment Financing (TIF). Mr. Statz is in conversation with other developers and hoping to have their concepts before the Commission in the coming month or two. Administrator Statz reviewed Apollo’s presentation and spoke about the various aspects of their design, layout and likely financial commitment. Council Member Wilharber sees less issues for people living around a townhome development than the previous proposal of an apartment building. He is concerned with plowing the narrow road, with little greenspace and lighting along trail. The proposal looks good at $300,000 per unit to help tax base. Council Member Lakso thinks the development looks on track and just wants to see something move along on the parcel. She agrees with Council Member Wilharber that the townhomes would fit nicely and cannot believe the cost of townhomes these days. There are no particular concerns she has and although it may not be the maximum use of the property, it still appears adequate for the city’s overall goals for downtown. Council Member Koski is excited that progress is being made and noted that the presentation is very preliminary. He mentioned that there was not a lot of comment from the developer and more was to come from them in the future. He stated that the developer continues to work on streetscaping, he appreciated the good comments on roads and the concern for snow removal. He is curious to see other developers’ ideas and hopes to hear from them in early January. He was eager to obtain input from neighbors regarding the proposal(s). Mayor Love feels this proposal is a win-win and great way to move forward. He hopes neighbors will be happier with this concept and is glad the city pushed back on using TIF. He thinks this is a great alternative and gets tax base in there right away. He’d like to see us continue to push for quality products as we have with recent developments like the mini-storage and Midwest Best Page 3 of 19 City of Centerville Council Meeting Minutes December 9, 2020 Water. He was also encouraged by the developer’s willingness to work with us even though we chose a different developer the first time. Mayor Love was willing to give them the benefit of doubt and applauded their loyalty to the City. Administrator Statz stated that the developer is also st interested in proposing an apartment complex on 21 Avenue, north of the bank. Council Member Montain echoes others comments and feels that it fits better than previous proposals. He asked Administrator Statz how tall the units would be. Mr. Statz stated that they would be 2-story slab on grade with gabled roof, perhaps with a step up from garage entrance. Administrator Statz assumed 30’ on height. Mr. Montain echoed snow removal concerns and noted that the concept had cars parked on Centerville Road. Administrator Statz stated that many of the issues would be outlined in a Homeowner’s Association document and thought we would be leaning in the direction of a private street due to density of driveways and the need for snow hauling. Mr. Montain wondered about public safety issues such as whether or not the units would need to be sprinkled. Administrator Statz believed that three or more connected units resulted in the need for them to be sprinkled and understood them to be 1,850 square foot, 3-bedroom units. Further discussion ensued with varying opinions on urban vs. suburban design concepts, streetscaping, setbacks boulevard treatments and the like. Mayor Love asked if there were other topics for which Mr. Statz was looking for feedback. Administrator Statz did not have anything further unless the Council wanted to go line by line through the IUP. III. RECESS Mayor Love recessed the work session at 6:01 p.m. COUNCIL MEETING I. CALL TO ORDER Mayor D. Love called the meeting to order at 6:30 p.m. ROLL CALL* PRESENT: Mayor D. Love Council Member Russ Koski Council Member Matt Montain Council Member Council Lakso Council Member Tom Wilharber ABSENT: None. STAFF: City Administrator Statz City Attorney Kurt Glaser Finance Director Bruce DeJong Page 4 of 19 City of Centerville Council Meeting Minutes December 9, 2020 *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 Wilharber to Approve the Agenda as Presented. A roll-call vote was taken. Mayor Love and Council Members Koski, Lakso, Montain & Wilharber voted in favor. Motion carried. IV. APPOINTMENTS/PRESENTATIONS 1. None V. PUBLIC HEARINGS 1. Truth in Taxation Administrator Statz stated that annually the Council is required to have a Truth in Taxation Public Hearing. He also stated that the public is provided this opportunity as the City’s budget and levy affects their property taxes. He stated that the presentation would assist in the public understanding the process. He reported that the budget/levy could go down or stay the same as what was approved in September, but could not be increased. Administrator Statz stated that State Statute requires that cities that have a population in excess of 500 are required to provide the public with an opportunity to participate in this hearing to voice their concerns regarding the City’s budget and property tax levy, and impact on taxpayers. He stated that following the hearing the City will adopt the budget and property tax levy for certification to the County. He explained that property taxes are made up of the City, County and School District levies as the three (3) major parts of taxes but the County is the fiscal agent that collects the taxes. He stated that the Board of Equalization and Appeal is the opportunity for residents to discuss/appeal their property values which occurs in April or May and that this was not that time. Finance Director DeJong reviewed major changes in the 2021 Budget and Tax Levy of several thousands of dollars in revenue with the Property Tax Levy increased which covers other areas that are anticipated to decrease such as Local Government Aid ($7,629), Police Aid ($6,000), Fines & Forfeits ($2,000), Pull Tabs ($3,500) and Building Permits ($20,000). He stated that the City is renting space to M Health Fairview for their ambulance so there is an offset of $7,200 to the anticipated changes. He reviewed major changes to expenditures of Salaries/Benefits of $20,000, savings from election expenses of ($9,130), Capital Project Contingency of $50,000 for City Hall Renovation or Downtown Street Project which was a prudent plan, Police Protection savings from the JPA formulation of ($11,400), Fire Protection increase of JPA formulation of $5,000, League Page 5 of 19 City of Centerville Council Meeting Minutes December 9, 2020 of MN Cities Insurance Trust $7,000, Economic Development ($22,500) and Equipment/Capital Imp./Street Reconstruction and EDA Fund Transfer of 34,200. Finance Director DeJong stated that budget for 2020 and 2021 were both balanced where revenues were sufficient to meet the anticipated expenditures. He stated that the total budget was increasing approximately 3%. He reported that the levy would be increasing by .87% due in part for the debt service levy going down. He stated that the total tax levy increase is less than 1%. Finance Director DeJong stated that 85% of the City’s total revenue Graphic representation contained in spreadsheet shows dependent on property taxes to fund general operations and looking at expenditures with Public Safety being 48% of total expenditures. He reviewed the debt service levy and stated that the City levied for three (3) bonds last year and that one (1) bond would be paid off by the end of 2020 which was the police station. He stated that the implications for that bond being paid off were a savings of approximately $79,000. He reported that Council has been cautious and used cash on hand to reduce debt service levy and stated that he anticipated that a continued drop in 2024 and a much larger drop in 2025 due to the street funds being paid off. Finance Director DeJong reviewed the levy trends. He stated that in 2017 the increase was 5.7% with 2019 and 2020 being less than 1% increase. He also stated that Council has been frugal and cautious with money being spent. Finance Director DeJong reviewed the property tax processes involved with the items that make up the property tax system. He stated that in October, 2018-September, 2019 sales of existing properties. He said that the City Assessor determines the trends that are happening with them and sets individual property tax values for January 2 the next year. He stated that the Assessor arrives at the assessed value by comparing similar properties with each individual home that have sold. He stated that then the County lays out the property’s Valuation Notice. He reviewed that the Board of Equalization and Appeal process happens in April or May of each year where Council acts as the Board and residents are given an opportunity to discuss/appeal their property’s valuation. He stated that all properties in town must be valued and then a preliminary budget is determined by Council commencing in July and August with an adopted Preliminary Budget and Tax Levy by September 30 which is forwarded to the County. He stated that the County then takes information from other jurisdictions such as the City, County, School District, Watershed District, and smaller taxing jurisdictions to determine the property’s Tax Statement. He said that the City certifies to the County its final budget and tax levy for the upcoming year. He stated that this commences the process of individual property tax statements for the upcoming year being forward to individual property owners. He reported that the first half property tax is due May 15. He stated that this finalizes the process and also starts the process over for the upcoming year’s Valuation Notices. He explained that property owners’ taxes for 2021 were based on what happened with sales of homes from years 2018 and 2019 which has a large lead time in the process. Finance Director DeJong reviewed the formula on how the property tax rate is determined and effects on an individual home. He stated that from the City Assessor’s report at the Board of Equalization, the median home value was $263,000 in 2020 and $273,000 in 2021 about a 3.7% increase. He explained that the net tax capacity is anticipated to increase slightly because of loss of some homestead credit up until you hit a little over $400,000 in value and calculate City property tax by multiplying your net tax capacity times the tax capacity rate. So that the estimated tax on a Page 6 of 19 City of Centerville Council Meeting Minutes December 9, 2020 median valued home is going to increase approximately $2. He stated that items that would change a home’s anticipated property taxes from the average would be if the home had been remodeled or an addition added. He also stated that for new construction that took place during the course of the year, the increase would occur the following year with taxes being payable the following year. Finance Director DeJong stated that the City Council has been very diligent in reviewing all items related to the City’s budget, (General Fund, Debt Service Fund, Capital Project Funds and Enterprise Funds). He stated that the City has a reasonable budget in the short term and long term. He stated that Council has been proactive in how it lays out decision making and how they are managing the City’s property Tax Levy and the implications to homeowner. Finance Director DeJong stated that now would be the time to open the public hearing to obtain input from the public and Council. Mayor Love gave credit to the Staff for their diligence, making modifications and coming forward for all in the City. Motion by Council Member Wilharber, seconded by Council Member Lakso to Open the Public Hearing at 6:55 p.m. A roll-call vote was taken. Mayor Love and Council Members Koski, Lakso, Montain & Wilharber voted in favor. Motion carried. Council Member Montain stated that Council and Staff have work hard on this budget and levy and stated that he was satisfied with the budget. Council Member Koski stated that there was a large amount of work by both Council and Staff who care about residents. He complimented Finance Director DeJong on his presentation, thanked him and stated that it was easy to follow. He stated that he liked see the debt levy decreasing which helps the tax rate go down. Council Member Lakso echoed her appreciation and stated that she felt good that there was little increase with little sacrifices while keeping the standards of service that resident’s desire. Council Member Wilharber echoed his appreciation to Council and Staff. Mr. Steve King, 1724 Sorel Street, asked about concerns identified by the League of MN Cities that Finance Director DeJong referenced in his memorandum along with if the City paid them. Finance Director DeJong stated the City is a member of the organization, the City benefits from participating in their Insurance Trust which is a very strong, stable insurance alternative to the commercial market, benefit from their staff research and participation in the legislative processes. He stated that what the memorandum is referring to is there may be changes that may occur due to COVID related responses. He stated that the City discussed these in August and September when drafting the Preliminary budget. He stated that the City has sufficient revenues and funds on hand to cover these contingencies if there were to happen. He also stated that Staff has pointed them out and taken care of them within the budget (State Aid, LGA or other revenues). Mayor Love added that the League put of state wide memorandum of some things cities should think about for planning for budgets and the following year. Administrator Statz stated that one of the issues collection of property taxes and they may not be at the same levels as individuals have been unemployed and may become delinquent. He stated that the City is highly dependent on property taxes. He stated that both he and Bruce have not seen that revenue stream dry up or effect the City in a long meaningful way. Administrator Statz stated that the City just received information that its percentage of collection rate for property taxes was quite high and it was Page 7 of 19 City of Centerville Council Meeting Minutes December 9, 2020 anticipated that in 2021 it would be equally as high. He stated that he felt that this recession is different than in 2008 is that home values have remained home and people will not walk away from them. He stated that those concerns were addressed within the budget and Staff did a significant amount of work working on cash flow and property taxes eventually get paid what is more critical is cash flow in short term and Staff built in contingencies and he felt that the City is well positioned. Mr. King asked if the League was involved in the City’s budgeting process. Finance Director DeJong stated that the City relies on the League for guidance in regards to state law, budget guides for Finance Directors, Clerks and publication regulations. Mr. King thanked Finance Director DeJong and stated that he liked the presentation. Mayor Love called for public comment. He stated that the hearing would remain open. VI. APPROVAL OF THE MINUTES 1. August 26, 2020 City Council Work Session & Council Meeting Minutes Mayor Love provided an opportunity for members to make corrections or additions. Motion by Council Member Wilharber, seconded by Council Member Montain to Approve the August 26, 2020 City Council Work Session & Council Meeting Minutes as Presented. A roll-call vote was taken. Mayor Love and Council Members Koski, Lakso, Montain, & Wilharber voted in favor. Motion carried. VII. CONSENT AGENDA 1. City of Centerville Claims through December 9, 2020 (Check #34391-34432) & (1611E-1619E) & Voided Check #34390 & 34349 2. Centennial Lakes Police Department Claims through November 25, 2020 (Check #13481-13526), E2020043-2020046, Payroll Check #13498-13500 3. Centennial Fire District Claims through November 24, 2020 (Check #8947-8952) 4. Accepting Resignation of Misters Haiden & Darrin Mosher from the Planning & Zoning Commission and Declaring Two Vacancies 5. Pay Request #8 – Downtown Street & Utility Improvements 6. Tobacco License Renewals a. Corner Express, 1990 Main Street b. CenterMart, 1801 Main Street 7. Liquor License Renewals th a. SCAT Properties DBA Wiseguys Pizza & Pub, 7095 – 20 Avenue (On Sale & Sunday) th b. JPs Liquor, Wine & Beer, 7093 – 20 Avenue (Off Sale) 8. 2021 Meeting Calendar 9. LOC Reduction Requests a. Bay View Villas nd b. Old Mill Estates 2 Addition 10. Res. #20-0XX – Establishing Precinct & Polling Location 11. Res. #20-0XX – Granting Permission for Platting Centerville Elementary School Addition Page 8 of 19 City of Centerville Council Meeting Minutes December 9, 2020 Mayor D. Love provided an opportunity for Council to add or remove any item(s) to/from the consent agenda. Administrator Statz added that in the packet it stated that Staff was waiting for several background checks, we have received them and there were no concerns at this time and all licenses are being recommended by Staff for approval. Council Member Koski requested that Item #4 be pulled for comment. Motion by Wilharber, seconded by Council Member Montain to Approve Consent Agenda Items 1-3 & 5-11 as Presented. Mayor Love and Council Members Koski, Lakso, Montain, & Wilharber voted in favor. Motion carried. Council Member Koski stated that two (2) members of the Planning & Zoning are resigning and acknowledged Mr. Mark Haiden who will be moving out of state as he has 12-13 year on both the Parks & Recreation Committee and Planning & Zoning Commission. He desired to thank him for his years of dedicated service, he also stated that he will be greatly missed and wished him well. He also desired to thank Mr. Darrin Mosher for his 13-14 years of serving on the Commission and stated that he is stepping into City Council. He also thanked him for his dedicated service and stated that the Commission will also miss him. Mayor Love was also going to thank the members and stated that Mr. Mosher has been the Chair of the Commission ever since Mayor Love left the Commission and had done an admiral job and they will be missed. He stated that the City is looking forward in receiving applications. Motion by Council Member Koski, seconded by Council Member Wilharber to Adopt Consent Agenda Item #4 as Presented. Council Member Wilharber concurred with Council Member Koski in regards to the resignations of the individuals and their services. A roll-call vote was taken. Mayor Love and Council Members Koski, Lakso, Montain, & Wilharber voted in favor. Motion carried. VIII. OLD BUSINESS 1. Personnel Committee – Administrator Review Process City Attorney Glaser stated that the Committee would like to request that Council consider what Mayor Love has been providing for several months as a monthly performance review of the City Administrator. Attorney Glaser stated that the reviews have not been forwarded to the Administrator as this was not the policies. He stated that the Personnel Committee is requesting that Council allow this. Mayor Love stated that discussion was had at the previous month’s Work Session and City Administrator Statz stated that he would like to receive these on a monthly basis. Administrator Statz stated that he is in favor of the change and cautious with this request and all are used to having a congenial Council and when there becomes a division they should review of the practice. Page 9 of 19 City of Centerville Council Meeting Minutes December 9, 2020 He also stated that review by all Council Members would ensure something is not being mischaracterized or things being missed. He also stated that his review is to be completed by the entire Council and the Mayor echoes these same thoughts. He stated that the Mayor could be the primary conduit to receive input and that the rest of Council does not feel like he is not receiving undue influence. Mayor Love stated that the review will go through the Personnel Committee and then on to Administrator Statz. He stated that any Council Member can provide feedback. Attorney Glaser advised Council that these comments should be forwarded to him so that there are no Open Meeting Law violations. Council Member Montain provided no comments. Council Member Koski asked if this change the Section 31.03b change City Code or is this policy. City Attorney stated requesting permission and not a Code change. Council Member Lakso asked the process for stopping the process, would it be by request to be sensitive to Council being amicable or not. How dial back. City Attorney stated that Council could place a time limit on it now or propose conditions this evening. Council Member Lakso stated that it would not cross anyone’s mind unless it was prompted every year on the Agenda. The Personnel Committee exists and would feel better to revisit annually as a Council as members could change, the tone of Council could change, it could become a burden to complete on a monthly basis and that would be unfair/not honoring the Administrator’s work. Mayor Love stated that Personnel Committee/Council will complete a year-end review and at that time discussion whether the process should continue or be modified. Administrator Statz stated that it seemed appropriate that it happen with his Annual Review and the review of the process also. Council Member Wilharber stated a good idea as a policy change. Motion by Council Member Wilharber, seconded by Council Member Montain to Approve the Personnel Board Creating & Giving the City Administrator a Monthly Performance Review. Mr. Steve King, 1724 Sorel Street, asked how this procedure would be implemented. Attorney Glaser stated that the Mayor has been completing similarly to private industry and applying it here. He also stated that the system in place had been that the Administrator had been reviewed annually and the Committee had not been giving these to him. The Committee felt that due to timeliness it would be important to give to him on a monthly basis. He stated that permission has not been granted by Council so the Administrator has not been receiving. Council Member King suggested quarterly. City Administrator Statz stated that he and the Mayor would like to continue the monthly review. He stated that the remainder of Council can add to it or review it for appropriateness. He also stated that if Mayor Love was no longer Mayor and that individual was not as passionate the process would need to be flexible or modified. Mayor Love asked if City Administrator Statz would be sharing the review with the rest of Council or how it would be handled. Attorney Glaser stated that as it is confidential to the employee and no serial Open Meeting Law violations and that he was the best person to deliver and obtain information for the process. A roll-call vote was taken. Mayor Love and Council Members Koski, Lakso, Montain, & Wilharber voted in favor. Motion carried. 2. Changes to the City Administrator’s Contract Page 10 of 19 City of Centerville Council Meeting Minutes December 9, 2020 Attorney Glaser stated that the City Administrator has an annual contract and he took the previous year’s contract and revised it based on the outcome of his Annual Performance Review which included the pay increase ($120,000 Annual Salary) and notice period for terminating employment with the City (60 days). Motion by Council Member Wilharber, seconded by Council Member Montain to Approve the Changes to the City Administrator’s Contract as Submitted. A roll-call vote was taken. Mayor Love and Council Members Koski, Lakso, Montain, & Wilharber voted in favor. Motion carried. IX. NEW BUSINESS 1. Res. #20-0XX – Adopting Final Budget and Tax Levies for 2021 Motion by Council Member Montain, seconded by Council Member Lakso to Close the Public Hearing at 7:28 p.m. A roll-call vote was taken. Mayor Love and Council Members Koski, Lakso, Montain, & Wilharber voted in favor. Motion carried. Motion by Council Member Wilharber, seconded by Council Member Koski to Approve Res. #20-028 - Adopting Final Budget and Tax Levies for 2021. A roll-call vote was taken. Mayor Love and Council Members Koski, Lakso, Montain & Wilharber voted in favor. Motion carried. 2. Personal Time Off (PTO) Carryover Extension Request Administrator Statz stated that the vacation requests have been difficult due to the year’s events (three elections, COVID, etc.) and requested that staff be allowed to carry over up to two (2) weeks of vacation which would need to be utilized by March 31 as several staff members are in danger of losing PTO if unable to carry it over. He stated that he was happy with staff’s performance through pandemic and he felt that this would be a way to reward them. Mayor Love asked if this was something that was done last year and Administrator Statz stated no. Council Member Koski stated several years this has been happening and becoming a practice. He does understand but he does not get that privilege working in the private sector and he is puzzled as to why it is happening. Council Member Wilharber stated that the City has a small amount of staff, goes back for years and things come up. Motion by Council Member Wilharber, seconded by Council Member Montain to Approve Personal Time Off (PTO) Carryover of Up to Two (2) Weeks From 2020 to 2021 to be Utilized by March 31, 2021. Mayor Love asked City Administrator Statz whether there was a way to make our existing policy to make other options available going forward such as putting into a retirement benefit or other options. Administrator Statz stated that he was happy that he did not need to bring this before you last year. He stated that it is an unprecedented time and he views it as some things are predictable; regular elections; however there was a Special County Election and COVID are not predictable. He stated that he felt that this was appropriate this year and not bring back next year. He also Page 11 of 19 City of Centerville Council Meeting Minutes December 9, 2020 stated that two (2) days are allowed to be placed in a Health Care Savings Plan. He also stated that this is over what we are allowed to bank. He believes that the banking of PTO is a benefit to staff, their continuity and having a very stable staff is a nice offering if a need should arise for an extended absence. Mayor Love stated that he did not want staff to lose benefits and maybe within the first quarter. City Administrator Statz stated that he did not believe anyone could not take within the time period. A roll-call vote was taken. Mayor Love and Council Members Koski, Lakso, Montain & Wilharber voted in favor. Motion carried. 3. On-Sale Liquor License Rebates Administrator Statz stated that he attempted to keep the item simple in the idea this was completed in April when bars and restaurants were shut down for an extended period of time. He stated this was prior to the 50% capacity model. He stated that recently, bars and restaurants that they could not be open except for carryout which their licenses because useless. He stated it was approved last time and felt similar circumstances and rebate for four (4) weeks for Governor’s order in effect and wait to end of year and contingent on through end of year or how long the order last. It would be nice to extend the courtesy this time around also. Council Member Wilharber asked about discounting 2021. City Administrator Statz stated gave a rebate in 2020 and just renewed for 2021 and only charging 50% of licensing fees. Council Member Koski stated a good idea to help businesses and that we appreciate them. Discussion ensued regarding the proration as Council Member Montain had questions. Mayor Love asked if coming out of 2020’s budget. City Administrator stated yes. Mayor Love stated that since into December and how much money if rebated to the end of the month. City Administrator said 1/12 of license for year. Mayor Love fine with staff’s calculations. Council Member Koski stated already discounting 2021 fee by 50% and if everything back to normal on March 1 they are getting a nice discount. Motion by Council Member Koski, seconded by Council Member Wilharber to Approve A Rebate the City’s Portion of On-Sale Liquor License Fees Based on the Number of Weeks the Government Shut-Down of Bars is Mandated, Through the End of 2020 as Presented. A roll-call vote was taken. Mayor Love and Council Members Koski, Lakso, Montain & Wilharber voted in favor. Motion carried. 4. Cancel December 23 City Council Meeting Administrator Statz stated that a large amount of items were placed on the Agenda in anticipation that all needs would be met for the year. He stated that staff is confident that there would not be issues and with the policy in place to make routine expenditures/checks without Council approval and that financial account of same would meeting auditing requirements. Motion by Council Member Koski, seconded by Council Member Lakso to Cancel the December 23, 2020 Regularly Scheduled Council Meeting. A roll-call vote was taken. Mayor Page 12 of 19 City of Centerville Council Meeting Minutes December 9, 2020 Love and Council Members Koski, Lakso, Montain & Wilharber voted in favor. Motion carried. 5. Metro I-Net JPA Administrator Statz stated that for a number of years Metro I-Net has been contracted to provide the City with IT services and prior to that we had our own server. He explained that in the past this has been a program offered by the City of Roseville to serve cities, Police and Fire Departments, and similar organizations. He stated that the City of Roseville no longer desires to house the services and a Joint Powers Agreement has been drafted to allow all entities who belong to the consortium to continue through a JPA. He reported that all members were in favor of this. He stated that the consortium desires to continue to keep costs reasonable. He also stated that IT changes on a daily basis and do we jump in for five (5) years. He stated that he believed that the JPA is well-structured and something the City should take advantage of. He reported that the City would not be heavily invested if they desired to cease the agreement. City Administrator Statz stated that he believed that this was a good thing and well structured. Attorney Glaser stated that the City would be a part of operating a new business and would require a Member of Council to sit on the Board. He stated that it is nice benefit for the City. Finance Director DeJong stated that this service has been going on for 20 years and has been a very stable organization and continue with the group. He stated that he felt that it was in the City’s best interest to continue with the JPA and services provided. He stated that there were no profit margins built in and at cost to member cities which include salaries and no overhead built in and a much better deal than the commercial market. He believed it was also a benefit for the City. Council Member Montain stated that he was a part of the vote for the transition to work with them, works with the on a daily basis and the best bang for the buck. Council Member Koski asked how many cities. Finance Director DeJong stated that he thought there were 50 different agencies along with Watershed Districts and other associations. He asked if it was difficult to cease and get out of the JPA. Attorney Glaser stated that the City would forfeit the assets contained in the JPA but as a new member you also assume them for free. He stated that notice must be given and the timing that the budget is announced right before you have to determine whether to stay or provide notice to leave is good timing and orderly. Council Member Koski asked if the $28,000 which was $5,000 over the previous year was going to pay for the City’s services. Administrator Statz fair jump from last year and reflective of a jumping off point and conservatism with budget and this was a starting part and a choice made on an annual basis. The board of members will be hesitant to buy a lot of stuff that you cannot get back if you leave. He stated that attempts are being made to lease everything and all have same goal not to make difficult not to get out. Council Member Lakso asked if there was a letter earlier in the year asking for members support on whether in out of something like this. Administrator Statz stated yes. Council Member Lakso stated that these services are invaluable and she is in support of this and the costs is fair. Council Member Wilharber stated looks like 35 members presently in what he read but he had questions regarding Section 4.1 which discusses Board of a Director. Administrator Statz stated that so far been operating with a member of staff as voting on JPA. Directors shall be Chief Executive Officer (City Administrator) and he stated that he designated Finance Director DeJong in his place and they were fine with that. Mayor Love stated that he was slightly disappointed with the voting structure but agreed with Council Members Montain and Lakso that it was a good thing for the City. Page 13 of 19 City of Centerville Council Meeting Minutes December 9, 2020 Motion by Council Member Montain, seconded by Council Member Lakso to Approve Metro-I Net JPA as Presented. A roll-call vote was taken. Mayor Love and Council Members Koski, Lakso, Montain & Wilharber voted in favor. Motion carried. 6. Change Order #3 City Hall Renovation Project – Lighting in Administrative Offices & Kitchenette Administrator Statz stated as the renovation to City Administrative offices has moved along several items have come forward and should be addressed with lighting. He stated that the kitchenette could use a light over the sink and the three (3) new offices were not originally designated for dimmer switches. He stated that the move to LED and is an even bright light and is much different for some individuals and they would like to have the ability to dim the lighting levels. Council Member Montain stated that a lamp could be utilized instead of dimmer switches and that they should have been a part of the bid and understand the light above the sink. Mayor Love stated that if the lights are too bright and causes headaches and just turning them off and having a lamp from an office standpoint but in a specified office see that this is needed. Mayor Love asked if the expenditure was coming out of the General Fund. Administrator Statz concurred. Motion by Council Member Wilharber, seconded by Council Member Lakso to Approve Change Order #3, City Hall Renovation Project – Lighting in Administrative Office & Kitchenette as Presented. A roll-call vote was taken. Mayor Love and Council Members Koski, Lakso, Montain & Wilharber voted in favor. Motion carried. 7. Rehbein Black Dirt Interim Use Permit Administrator Statz stated as discussed in the Work Session and staff is proposing a new IUP functioning similar to the existing IPU with a two (2) year extension except for the caveat of after year one (1) year the requirement for a Letter of Credit in the amount of $2/cubic yard of material left on site in a stockpiled manner. He explained that the operator of the site has stated that the existing conditions are approximately 12,000 cubic yards of common fill or dirt and not topsoil, another pile of 35,000 yards of common fill and in the middle of those piles there is another pile of 30,000 yards of topsoil. The stated that the area near Fairview Street has been completed and ready to go. He stated that the area worked on last summer is mostly completed. He stated that the discussion at last evenings Planning & Zoning Commission was to require a Letter of Credit up front and then there was a compromised solution and have the summer of 2021 to get most of the material either hauled away or in compliance with City Code. He stated that they were given a one (1) year “grace period”. He also stated that if this were the case, an IUP or LOC would not be needed. He also stated that if it were not in compliance in year two (2) as small requirement for the LOC with a smaller stockpile and remain operating the dirt operation a LOC of $20,000- $24,000 was a fair compromise. He reported that the owner and representation was comfortable with the agreement. City Administrator Statz stated that Mr. Matt Rehbein and Mr. John Rausch were both participating in the meeting this evening and if desired the Mayor could take comment from them. City Administrator Statz stated that he primarily outlined the proposed IUP. Page 14 of 19 City of Centerville Council Meeting Minutes December 9, 2020 Attorney Glaser explained the changes in the old IUP and stated that the first change is to remove the old IUP, language regarding ingress and they have agreed to repair some damage to the streets and they have agreed. He stated that we have given them a year to remove all materials within a year and if completed no LOC is needed and we are providing them an incentive to complete on their own, but if they have not removed the materials after that an estimate will be made of the materials on site and a security requirement of $2/cubic yard and they will issue a LOC to the City. He stated that then they will have another full year to fully remove materials. He stated that if not fully removed by January 1 of 2023 the City will use there LOC and the City has a year to remove the material. They do have the ability to request an extension if it is economically necessary. Attorney Glaser stated that putting this much dirt on the site was not something that should have been allowed to begin, but with the agreement the City can control the operation and if there is a good economic reason to continue it operation that can be done also. He also reported that if the operator fails to comply, the City has the ability to make the site pad ready with the LOC. Council Member Montain asked when get into an agreement and understanding it. It is a business that is being restricted and that is not the property owner’s desire as it a very valuable piece of land and LOC are expensive. Their end result is to develop the property and not leave it. He stated that he desired to hear comments from the property owner however. Them leaving dirt is not a concern but understand City’s need to manage. For the most part we have been receiving money without providing services for the parcel. Council Member Koski stated he made comments earlier in the Work Session and the Planning & Zoning Commission heard a lot of discussion. He stated that Council’s responsibilities are to assist business but at the same time have to protect residents and City. He agrees that the Rehbein’s would like to sell the property but they are comfortable with agreement and the current use is non-conforming. He would like to see the Rehbein’s be successful and appreciate landowners and have something equitable for everyone. Council Member Lakso stated that see agrees with what is being said, but with passed issues and the City’s vision and recognizing property owner’s responsibility and rights. She felt if they agreed and she would like to hear from the property owner. Council Member Wilharber stated that he earlier disagreed with continuing the IUP and following listening to Council Member Koski’s right of the property owner I concur. Mayor Love stated that following meetings with the Rehbein’s and Mr. John Rausch he had gotten the impression that the Rehbein’s were good stewards of Centerville and their land rights. He stated that the City does have rules and regulations for types of businesses and where they are located. Mr. John Rausch stated that everybody’s incentives are in line and with the three deals north of Main Street (apartment, senior facility and Kwik Trip). Spent a lot of time and site plans. Mr. Gerald Rehbein and Mr. Gordy Rehbein do not want to run a dirt pit. What if the Rehbein’s walk away from the property but the property would not go tax forfeit as it would go to their heirs. He stated that if the market stays the same, this property will be sold shortly. Mr. Matthew Rehbein stated that his Dad will be 80 in January and his Uncle will be 72 and they want to take advantage of the monies that will be earned. He stated that the Rehbein’s will not be walking away from this property. He stated that Mr. Gerald Rehbein did not originally agree to the LOC but then did. Mayor Love thanked Misters John Rausch and Matthew Rehbein for their comments. Page 15 of 19 City of Centerville Council Meeting Minutes December 9, 2020 Council Member Montain biggest thing that they were in support of it and he never believed that they would walk away or let go tax forfeit. If they do not believe a year is enough and if they have support and in line. He stated that from a City standpoint we would also like it developed from a tax base standpoint. Mr. John Rausch stated that it is worth noting the amount of work that had been completed over the past twelve months by the Rehbein’s to prepare this land for sale. He stated larger companies like Amazon do not have the foresight with real estate and not looking forward with their real estate needs. If twelve months in the past no one would have seen COVID and really hard to look twelve months forward and if land not pad ready they will not consider in their needs. Mayor Love stated that he thinks the landowners do want to remove the soils and as a City we just need them to be conforming. Motion by Council Member Koski, seconded by Council Member Wilharber to Approve the Interim Use Permit for Rehbein Black Dirt as Presented by the City Attorney Glaser Presented. A roll-call vote was taken. Mayor Love and Council Members Koski, Lakso, Montain & Wilharber voted in favor. Motion carried. X. COUNCIL/ADMINISTRATOR ANNOUNCEMENTS 1. Administrator’s Report Administrator Statz stated that his report was contained in the packet and that he would be happy to answer any questions that Council may have. Still targeting February 1 to open City Hall to the public. He stated that at this time, City Hall would not be fully staffed but enough to do business. He stated that the renovations will be completed by mid-January except for the audio/visual. He stated that he had emailed the Anoka County Historical Society regarding get the history niche taken care of February 1. He also stated that he was unsure whether Committee/Commission/Council meetings would be taking place as he did not want to predict more than a month out with COVID requirements. City Attorney Glaser stated that prosecutions were ramping up cases that they are holding and that there were no in person hearings as of yet. He stated that he was hopefully that jury trials would be taking place in the summer. Finance Director DeJong stated the CARES Act submittal that nothing had been change from the November report. He stated that staff continues to code items to those emergency codes and if there are additional funds the information will be easily reported. Council Reports a. Lakso i. Parks and Recreation Committee – No report was given as she was unable to attend. She did report that Council Member Wilharber attended in her absence and she thanked him. Page 16 of 19 City of Centerville Council Meeting Minutes December 9, 2020 ii. Centennial Fire District Steering Committee – No report was given. iii. Anoka County Fire Protection Council – No report was given. b. Wilharber – stated that he received a phone call and a text message regarding the speed on Main Street and he understood that it was the County who was responsible for the speed but many people are attempting to cross the roadway and cars are not stopping. He asked if something could be done with marking, etc. He stated that in a closing note he desired to thank Council Member Montain for his years of service, on the Police Committee, North Metro TV and P & Z, but especially for being a Firefighter. He thanked Council for the last nine (9) months along with consultants. He wished the Council the best going forward, stated that they had came a long way and wished newly elected Darrin Mosher and returning Council Member King the best of luck. i. Economic Development Authority – Council Member Wilharber stated that Mr. Jeff Gilmore, Excipio Consulting spoke about data center and what they are looking for. He stated that two (2) business owners were looking to join the EDA. He stated that discussion took place regarding a Business Directory. Administrator Statz stated that he did not notify Council Members of the P & R meeting. He stated that he would provide the update as the two (2) annual skate nights had been scheduled for January 8 and February 6 from 6 p.m.-9 p.m. unless the Govenor’s orders cancel it. He stated that things would be done differently with no popcorn being served, etc. He also stated that the Adopt the Garden Program volunteers and a number have been assigned. He stated that Emem Akpan had been appointed to fill the Committee. He stated that two candidates have submitted for the EDA. c. Koski – i. Planning & Zoning Commission – Council Member Koski reported that lengthy discussion had been had regarding the meeting previously. He also stated that Commission Members Haiden and Mosher had resigned from the Commission and the Commission Member Broussard Vickers was appointed Chair and Commission Member Fehrenbacher was appointed Vice-Chair. ii. Centennial Fire District Steering Committee – No report given. d. Montain – Council Member Montain that all staff and Council Member for the time that he has been on Council. He stated that when he started he was 24 years old and how quick this go. He thank the public for electing him and allowing him to serve. i. Police Governing Board – No report was given ii. North Metro Telecommunications Commission – Council Member Montain reported that the December meeting had been cancelled. e. Mayor Love – Thanked Council Member Montain for his years of service as a Fire Fighter, Council Member and Planning & Zoning Commissioner. He read a letter and thanked him and stated that he would be greatly missed. Mayor Page 17 of 19 City of Centerville Council Meeting Minutes December 9, 2020 Love stated that he would keep it simple and short and read a note of thanks for his time with the Council, the Lions, and St. Genevieve’s Church. He thanked Mr. Wilharber, his wife and his family for sharing him and the City is very appreciative for everything that you have done. i. Police Governing Board – No report was given. ii. Economic Development Authority – No report was given. iii. Other Mayoral Reports – No report was given. Council Member Koski stated that he needed to be reminded that this was the last meeting of the year and that he desired to speak about both Council Member Montain and Council Member Wilharber. He thanked Council Member Montain for his service and stated that he hoped he would come back. He stated that he had a great deal of respect for Council Member Wilharber and a darn good person and a roll model and thank you for all you do for the community and you are so selfless. Thank you both. Council Member Lakso stated that she would miss both of the Council Member’s wisdoms and when came together it felt that everyone was on the same team and the same reason to be on Council. She stated that Council would miss you and thank them for their dedication and insights. Thank you for being role models and stepping up. Mayor Love stated that both are appreciated and will be missed. XI. RECESS REGULAR CITY COUNCIL MEETING Mayor Love recessed the Regular Council Meeting at 8:52 p.m. Administrator Statz stated that he would email a message to all Council Members and Legal Counsel with separate link for the Closed Session. He also stated that if anyone desired to be notified when the Regular Meeting Reconvened to let him know. CLOSED EXECUTIVE SESSION (PURSUANT TO MINN. STAT. 13D.03 Subd. 3(b)) City Attorney Glaser read the following into the record - This portion of the meeting is closed to develop or consider strategies for labor negotiations, including negotiation strategies or development or discussion of labor-negotiation proposals for Staff to negotiate with City employees. The closure is pursuant to Minnesota State Statute Section 13D.03, subdivision 3(b) I. CALL TO ORDER 1. Roll Call Mayor D. Love called the work session to order at 8:53 p.m. Mayor D. Love, Council Members Russ Koski, Council Member Michelle Lakso, Matt Montain and Tom Wilharber were present along with City Attorney Kurt Glaser and City Administrator Statz. Page 18 of 19 City of Centerville Council Meeting Minutes December 9, 2020 II. AGENDA ITEMS 1. Discussion of Labor Union Contract Proposal NOTE: The details of the discussion during this Session remain confidential pursuant to the attorney-client privilege. III. ADJOURNMENT Motion by Council Member Lakso, seconded by Council Member Koski to adjourn the Closed Executive Session and open the Regularly Scheduled Council Meeting. A roll-call vote was taken. Mayor Love and Council Members Koski, Lakso, Montain & Wilharber voted in favor. Motion carried. The meeting was reopened to the public at 9:22 p.m. by act of the Mayor. XII. RECONVENE REGULAR CITY COUNCIL MEETING COUNCIL MEETING (Cont’d) XIII. ADJOURNMENT Motion by Council Member Montain, seconded by Council Member Wilharber to Adjourn the Regularly Scheduled Council meeting at 9:23 p.m. A roll-call vote was taken. Mayor Love and Council Members Koski, Lakso, Montain & Wilharber voted in favor. Motion carried. Respectfully submitted by City Clerk, Teresa Bender. Page 19 of 19