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Home My WebLink About2021-07-28 WS, CC & Closed Session Meeting Minutes - Approved Approved CITY OF CENTERVILLE COUNCIL WORK SESSION, CITY COUNCIL MEETING & CLOSED EXECUTIVE SESSION JULY 28, 2021 6:30 p.m. Pursuant to due call and notice thereof, the City of Centerville held a Council Work Session, City Council meeting and Closed Executive Session on July 28, 2021 COUNCIL WORK SESSION I. CALL TO ORDER Mayor D. Love called the special meeting to order at 5:01 p.m. ROLL CALL* PRESENT: Mayor D. Love Council Member Russ Koski (arrived at 5:04 p.m.) Council Member Darrin Mosher Council Member Steve King Council Member Michelle Lakso ABSENT: None. STAFF: City Administrator Mark Statz Finance Director Bruce DeJong II. AGENDA ITEMS 1. RCWD Erosion Control Inspection Pilot Program Administrator Statz reviewed the Joint Powers Agreement for the City of Centerville & Rice Creek Watershed District (RCWD) – Coordinating Site Erosion & Sediment Control Programs and MS4 Compliance for Minimum Control Measure 4 as presented. He stated that there has been duplication by city consultants and RCWD staff completing inspections relating to silt fencing, etc. within the requirements of the Minimum Control Measures (MCMs) within the City’s MS4 permit. He stated that this would be a pilot program allowing for duplication to discontinue, the City reducing the costs passed along to developers and increase revenues to RCWD. He stated that the City generally contracts consultants to perform inspections at a rate of approximately $130/hour and RCWD would charge the city $55/hour. He felt that it was a win-win situation for the city and RCWD. He stated that no action was needed, it was a discussion item only to ascertain Council input. Brief discussion was had by Council. 2. City Hall Staffing City of Centerville Council Work Session, City Council & Closed Exec. Meeting Minutes July 28, 2021 Administrator Statz stated that over the recent years, the city has had three (3) part-time Receptionists. He stated that it has been challenging to obtain/retain employees in this position due to work-flow, duties, knowledge, etc. He stated that he felt that hiring a full-time staff member at a proposed budget level of $70,000 plus benefits would obtain an employee with a skill-set that may relieve some duties of current staff and provide the city with new assets (social media, web site, etc.) skills. He stated that no action was needed, it was a discussion item only to ascertain Council input and to make Council aware that the position was included in the 2022 budget for further discussion. He stated that he would submit a Job Description for further discussion at Council’s next meeting. Discussion ensued regarding planning background, Parks & Recreation experience, accounting experience; recruitment, reporting, social media and web content/site, and support for filling this position, etc. 3. 2022 General Fund Budget Finance Director DeJong stated that he noted a typographical error of approximately $9,000 for the line item Elections. He stated that the new full-time position has been added and he explained the offsetting costs for the position (Water/Sewer, $20,000 contingency from the Council’s budget, $25,000 costs of a part-time position, etc.) He stated that he felt that the general fund budget balance would increase $30,000. He addressed that revenue from fines/forfeitures have trended down with the revenue for this item being decreased $2,000. Reviewed additional increases with Council (assessing, police contract, fire contract, proper allocation of Workers Compensation for the Public Works Department, engineering fees for Streets, transfer to EDA and Equipment Replacement. He also stated that the overall effect of these changes increased the General Fund levy of $151,305. He informed Council that the levy is offset by the decrease in debt service levy of $49,391 with a net increase of $101,914 or a 3.7% increase in the overall levy. He stated that information from Anoka County regarding property value increases have not been received. Discussion ensued regarding salary increases, CIP, American Rescue Plan Funding, replacement vehicles, ability to purchase equipment, maintenance of ponds/stormwater fund, having the ability to slowly increase the levy with gradual increases rather than a 12% increase due to cashflow, 1.5% growth from new construction, presentation of Centennial Lakes Police Budget shortly with a 8-10% increase due to Workers Compensation increases due to Post Traumatic Stress Disorder (PTSD), public safety being the City’s largest expenditure, etc. Council Member Lakso requested a yearly check-list for Capital Improvement Projects and budgeting. 4. DNR Watering Restrictions Administrator Statz stated that the DNR has issued a “severe drought” warning letter to all water suppliers which requests that the City work to reduce water usage. He explained that this is stage one with an “extreme drought” being next and then “exceptional drought”. He stated that the DNR provides weekly updates every Thursday. He also explained that May – September the City invokes a water restriction between the hours of 10 a.m. and 6 p.m. He stated that the City’s Page 2 of 11 City of Centerville Council Work Session, City Council & Closed Exec. Meeting Minutes July 28, 2021 program follows the requirements of the DNR. He stated that if the DNR imposed higher warnings the City may need to consider more restrictive/punitive enforcement for violations. Mayor Love closed the Council Work Session at 6:29 p.m. allowing for a five (5) minute break prior to the regularly scheduled Council meeting. COUNCIL MEETING I. CALL TO ORDER Mayor D. Love called the special meeting to order at 6:33 p.m. ROLL CALL PRESENT: Mayor D. Love Council Member Russ Koski Council Member Darrin Mosher Council Member Steve King Council Member Michelle Lakso ABSENT: None. STAFF: City Administrator Mark Statz II. PLEDGE OF ALLEGIANCE III. APPROVAL OF AGENDA Mayor Love provided an opportunity for others to add or delete any items. Administrator Statz suggested moving Item #VIII. Recess to Closed Executive Session and the Closed Executive Session before Item #XIII. Adjournment. Motion by Council Member Koski, seconded by Council Member King, to Approve the Agenda as Amended. All in favor. Motion carried. IV. APPOINTMENTS/PRESENTATIONS/COMMENTS 1. None. V. PUBLIC HEARINGS 1. None. VI. APPROVAL OF THE MINUTES 1. April 14, 2021 City Council Meeting Minutes Page 3 of 11 City of Centerville Council Work Session, City Council & Closed Exec. Meeting Minutes July 28, 2021 Mayor Love provided an opportunity for Council to make modifications to the minutes if desired. Motion by Council Member King, seconded by Council Member Mosher to Approve the April 14, 2021 City Council Meeting Minutes as Presented. All in favor. Motion carried. 2. April 28, 2021 City Council Work Session & City Council Meeting Minutes Mayor Love provided an opportunity for Council to make modifications to the minutes if desired. Motion by Council Member Lakso, seconded by Council Member Koski to Approve the April 28, 2021 City Council Work Session & City Council Meeting Minutes as Presented. All in favor. Motion carried. 3. May 4, 2021 City Council Special Council Meeting Mayor Love provided an opportunity for Council to make modifications to the minutes if desired. Motion by Council Member Lakso, seconded by Council Member Mosher to Approve the May 4, 2021 City Council Special Council Meeting Minutes as Presented. All in favor. Motion carried. VII. CONSENT AGENDA 1. City of Centerville Claims through July 28, 2021 (Check #33913-33944) & (1737-1742E) 2. Centennial Lake Police Department Claims through July 22, 2021 (Check #13916-13938), Payroll (Check #13914-13915) & (2021035-2021038E) 3. Centennial Fire District Claims through July 13, 2021 (Check #9114-9135) 4. Encroachment Agreement, 7245 Clear Ridge – (Fence) 5. Catch Basin Repairs 6. Lawn Mowing Service 7. Transfer of Funds to EDA 8. Request for Payment #10 – Downtown Street and Utility Improvements – A-1 Contracting Mayor Love provided an opportunity for the Council to add or remove any item(s) to/from the consent agenda. Mayor Love asked if Item #5 was a budgeted item and Council Member King pulled Item #6 for discussion. Motion by Council Member Koski, seconded by Council Member King, to Approve Consent Agenda Items 1, 2, 4, 5, 7 & 8 as Presented. All in favor. Motion carried. Council Member King that due to a family member working for the RJ’s Property Maintenance he was unsure how to abstain from the vote if the motion contained all items. Page 4 of 11 City of Centerville Council Work Session, City Council & Closed Exec. Meeting Minutes July 28, 2021 Motion by Council Member Lakso, seconded by Council Member Koski to Approve Consent Agenda Items 6 as Presented. Council Member King Abstained. Motion carried. **This items below were moved to Item #XII prior to Adjournment of the Regular City Council Meeting. VIII. RECESS TO CLOSED EXECUTIVE SESSION CLOSED EXECUTIVE SESSION This portion of the meeting is closed pursuant to Minnesota State Statute Section 13D.05, subdivision 3(c), and is permitted to determine the asking price for, and to develop or consider offers or counteroffers for the sale of Block 7, Centerville I. ROLL CALL II. DISCUSSION COUNCIL MEETING (Continued) IX. RECONVENE REGULAR MEETING X. OLD BUSINESS 1. Purchase Agreement – Block 7 – Centra Homes Administrator Statz gave a brief history of development firms that have been interested in developing the site, Requests for Proposals (six (6) developers and two (2) responses) and elements the Planning & Zoning Commission and Council desired to see on the site, Downtown Master Plan and the 2040 Comprehensive Plan elements. He stated that staff from Centra Homes and City staff have been working diligently to derive an acceptable purchase agreement. Administrator Statz reviewed the three (3) areas that remained to be acceptable by Centra Homes and they are as follows: Two (2) Phased Project and Right of Reverter; Force Majeure Clause; and Homeowner’s HOA Cost Burden. He stated that he felt that there was miscommunication regarding Item #1 and clarified per Ms. Carla Dunham’s email dated July 22, 2021. Administrator Statz also addressed the Right of Reverter which Centra Homes was favorable with along with a Letter of Credit (LOC). He stated that this protects the City and themselves. He reported that the Right of Reverter would remain in place until all upfront infrastructure improvements detailed in the Developer’s Agreement. Administrator Statz reported that Centra Homes also was favorable with the Force Majeure Clause being capped at 24 months as recommended by Council. He stated that there were concerns of the LOC for a period of 10 years associated with the HOA would protect early purchasers from carrying cost of community maintenance, etc. if Centra Homes did not have the ability to complete the project. He reported that Centra Homes counter-offered that they would pre-fund the HOA for a period of 4 years ($15,000/year for four (4) years = $60,000. This would cover snow removal from the private street and trail, lawn care, landscaping/irrigation Page 5 of 11 City of Centerville Council Work Session, City Council & Closed Exec. Meeting Minutes July 28, 2021 in the common area and include a reserve. Centra Homes desired for these costs to be equal to following the close of each unit, the HOA will refund Centra Homes $2,307.69 per unit ($60,000 = 26 units) until all units are sold. Administrator Statz stated that he felt that it was a good agreement. Mayor Love asked if the developer had any additional comments to make and Mr. David Pattberg stated no. Discussion ensued regarding a lot split, 26 lots and an outlot for the roadway which was the original thought of Centra Homes and Mr. Pattberg believes this is part of the confusion of phasing; extension of time of performance for 24 months; HOA and the $15,000/year as cost as a best guess, previously failed HOA’s, etc.; clarification on the way the buildings would be built; and Centra Homes stated that they would not be able to finance the project if the City owned part of the project. Administrator Statz stated that this evening’s direction would yield a final purchase agreement. Mayor Love moved XI. New Business, Item #4 to present. He stated that he desired to move it up on the Agenda as Chief Charlie Smith, Spring Lake Park/Blaine/Mounds View Fire Department was in attendance. IX. NEW BUSINESS 1. Contract for Fire Administration Services – Spring Lake Park/Blaine/Mounds View (SBM) Fire Department Chief Smith introduced himself to the Council and thanked them for allowing SBM to provide these services. He stated that the firefighters from Centennial have been fantastic to work with through this transition period. He stated that SBM is a people centered organization and mission centered. He stated that the officers of the Department but they exist to support the firefighters and supply them with the tools needed to provide services to the public. He stated that there are nine (9) chief officers that throughout the transition period. He explained that the Centennial Department would remain the same but staffing, training and response times would be a priority. Administrator Statz stated that the Fire Steering Committee has voted to accept the proposal and enter into the contract presented, but desires to obtain both Council’s (Circle Pines/Centerville) approval as well. He stated that SBM will be the Chief and two (2) Full-Time firefighters will be added with the positions being filled by August 16, 2021. He also stated that three (3) people will be on duty during the day time and response times should improve. Administrator Statz stated that all fire departments are experiencing the lack of day time firefighters and recruitment is extremely difficult. Mayor Love stated that two (2) members of Council sit on the Fire Steering Committee, himself and Council Member Koski. He stated that they voted in favor of forwarding the contract to Council for consideration. Mayor Love provided Council Member Koski with an opportunity to speak on the item. Council Member Koski thanked the entire Steering Committee, Administrators, Co-Chief Peil and stated that a large amount of time was put into the decision making process and the agreement. He stated that this has taken over a year, the hiring of a consultant, a large amount Page 6 of 11 City of Centerville Council Work Session, City Council & Closed Exec. Meeting Minutes July 28, 2021 of research and consideration by all involved and the decision was not made lightly as this is public safety. He believed that staffing, communication and response times benefit all in the community. He thanked Chief Smith for his efforts and leadership in making us comfortable with the transition. He desired to caution Council on the proposed savings of $40,000 as it may not remain that way. Mayor Love stated that there are seven (7) reason he felt that the contract was good for Centerville and its citizen. He stated that there is a large amount of discussion about regional firefighting and we are on the cutting edge with the agreement, we get to remain Centennial Fire, take advantage of robust training with SBM, provides a different approach for operating the department than in the past, we have an out clause, Chief Smith’s leadership and the survey of firefighters who had no objections to the contract. Discussion ensued regarding the opportunity to enter into the agreement, ensuring that the contract is fulfilling the needs and goals outlined, the 10% language for excessive administrative/management costs, collaboration is unknown, opportunities for additional discussion, unforeseen items, and resource heavy in the beginning. Chief Smith stated that they are adding two (2) fire stations to their family of five (5) with this contract. He stated that Centennial Fire is a fantastic organization and that SBM would be providing leadership and making things better for the firefighters and the public. Lengthy discussion ensued regarding SBM’s structure, amount of full-time firefighters, cross- trained City of Blaine staff, use technology, non-traditional ways of doing things, staffing at Circle Pines and Centerville, M-Health (Advanced Life Support), amount of firefighters on a call (OSHA standards 4) with stipulations, mutual aid and a 10 year contract with Blaine to expire in 2023 with renewal options. Mayor Love thanked Chief Smith for his attendance. Chief Smith thanked Council for their support and stated that they would not let the City down. Motion by Council Member Koski, seconded by Council Member Mosher to Approve the Administrative Services Contract with Spring Lake Park/Blaine/Mounds View (SBM) Fire District. All in favor. Motion carried. 2. Extension of Contract – ABDO, Eick & Meyers Administrator Statz stated that ABDO, Eick & Meyers has been delivering financial auditing services for the City for numerous years with the existing three year contract expiring. He stated that the contract would be an extension for an additional three (3) year period with modest increases. He stated that the Finance Director solicited a bid for the extension. Administrator Statz felt that the City has received good services with them in the past and recommends approval of the contract extension. He stated that Council could solicit Requests for Proposals if desired. Discussion ensued regarding Requests for Proposals for the future, professional services and continued relationships are important, the length of time it has been since the last Request for Proposals for these services, establishing a policy for length of time before Request for Proposals Page 7 of 11 City of Centerville Council Work Session, City Council & Closed Exec. Meeting Minutes July 28, 2021 are taken with all professional service providers, put on record when contract ends the City will be going out for RFPs. Motion by Council Member Koski, seconded by Council Member Lakso to Approve the Contract with ABDO, Eick & Meyers for Audit Services for Fiscal Years 2021, 2022 and 2023 as Presented. Council Member Mosher asked whether the motion should include soliciting RFPs following the 2023 audit. Council Member Koski felt that it was not needed but should be considered before granting another extension. All in favor. Motion carried. 3. Preliminary Plat – Peterson Shores Administrator Statz stated that this is a simple lot split of one (1) larger parcel being split into two (2) along the lake. He stated that the original preliminary plat contained property owned by the St. Paul Regional Water. He explained that the plat has been revised, there is an easement on the property and the intended home would not be in the easement and that there is one (1) driveway but the County has stated that they would allow another. Administrator Statz stated that fees would be due for SAC and WAC for the new lot and one (1) WAC for the existing home when removed and rebuilt. He also stated that additional fees will be due such as stormwater fees and park dedication fees. He stated that the P & Z Commission held its required hearing and is making the recommendation to Council for approval. Administrator Statz stated that the plat that is contained in the packet is not the revised plat excluding St. Paul Regional Water’s property. Motion by Council Member King, seconded by Council Member Koski to Approve the Preliminary Plat for Peterson Shores Contingent upon Addressing the Comments of all City Staff & Departments. All in favor. Motion carried. 4. Preliminary Plat – Rehbein Industrial – Sutton Transportation Administrator Statz stated that this plat is for a single 15 acre parcel with the dedication of right- st of-way for both 21 Avenue and Fairview Street. He stated that the plat is being completed to accommodate the development of a 40,000 square foot warehousing/cross-dock facility for Sutton st Transport and due to the fact that Fairview Street will be completed to 21 Avenue. Administrator Statz stated that this is an existing business that is moving from their current location. He stated that they would have outside storage meeting the City’s code. He noted that they are meeting all requirements of the code but that is not for consideration this evening. He stated that this is for the Preliminary Plan, infrastructure and a Final Plat and Developer’s Agreement will be in the future. He also stated that the P & Z Commission held its required hearing and is making the recommendation to Council for approval. Page 8 of 11 City of Centerville Council Work Session, City Council & Closed Exec. Meeting Minutes July 28, 2021 st Discussion ensued regarding outside storage as the building expanding, the extension of 21 Avenue to Cedar Street, strict outside storage regulations, building esthetics and Conditional Use requirements. Motion by Council Member Mosher, seconded by Council Member Koski to Approve the Preliminary Plat for Rehbein Industrial, contingent upon addressing the Comments of all City Staff & Department. All in favor. Motion carried. 5. RCWD Erosion Control Inspection Pilot Program Administrator Statz stated that this was discussed at the Work Session earlier this evening, he reported that RCWD has not approved the document yet but have fined tuned it and that is what is before Council this evening. Motion by Council Member King, seconded by Council Member Koski to Approve the RCWD Erosion Control Inspection Pilot Program. Council Member Lakso stated that the motion recommended by Staff was to approve the Joint Powers Agreement with the Rice Creek Watershed District for Coordination of Erosion and Sediment Control Inspections. Council Member King accepted the friendly amendment and rephrased the motion as follows: Motion by Council Member King, seconded by Council Member Koski to Approve the Joint Powers Agreement with the Rice Creek Watershed District for Coordination of Erosion and Sediment Control Inspections as presented. All in favor. Motion carried. X. COUNCIL/ADMINISTRATOR ANNOUNCEMENTS 1. Administrator’s Report Administrator Statz stated that his report was in the packet for review and he would accept and questions. He also stated that the moratorium for evictions was going to end soon and calling 211 will provide rental assistance. He stated that the festival, Music in the Park and Main Street Market have really been wonderful events and he thanked the volunteers for their hard work. He noted that he has been working with developers to finalize items and their completion dates have come and gone. He stated that September 1 is the deadline if items are not completed, the City will be drawing on Letters of Credit. Mayor Love asked about the Brew Pub and where Administrator Statz suggested sites. He stated that he emailed them and shared that with EDA. Administrator Statz stated that he suggested 1695 and 1737 Main Street 5,000-8,000 sq. feet of building is desired. Suggested an industrial building zoned Commercial and potential site of where the apartment building was proposed. Council Reports Page 9 of 11 City of Centerville Council Work Session, City Council & Closed Exec. Meeting Minutes July 28, 2021 a. Lakso - i. Anoka County Fire Protection Council – Was unable to attend. She did ask how it will look with Chief Smith representing us. Administrator Statz stated that Chief Smith is a consultant and all will remain. Officer BJ Stephan and herself served in the capacity of Incident Management. She stated that having a Security and Safety Plan worked well and she will be sharing it with other communities. ii. Parks and Recreation Committee – Council Member Lakso reported that Heidi Errickson-Grahek was appointed Chair of the Committee and Ms. Jessica Kubat was appointed to the Committee. b. Koski – i. Fire Steering Committee – Council Member Koski that the meeting took place on th the 15 and the contract with SBM was approved. ii. Planning & Zoning Commission – Council Member Koski stated that the meeting was moved due to Night to Unite. c. King – i. Economic Development Authority – Council Member King stated that they went over the budget, discussion took place regarding 1737 Main Street and preparing plans assisting with the sale of the property. d. Mosher – i. Economic Development Authority – Council Member Mosher stated that the EDA discussed putting money towards ($10-15,000) for Mr. Mike Brass to develop plans for a building which would saving time in attracting businesses for the 1737 Main Street. ii. Police Governing Board – No report was given. e. Love – Suggested that the proposed renderings should include our suggestion for exterior aesthetics. He stated that the Main Street Market and Bald Eagle Ski Club took place and he had an opportunity to attend and he was impressed with the turnout. He stated that he attended Mr. Randy Lauderbaugh’s retirement. He stated that he was unable to attend the Fete des Lacs celebrations and it was wonderful seeing everyone out and about and enjoying themselves. He thanked all involved in making this wonderful event happen. He also thanked all supporters of his son and stated that well wishes and donates have been much appreciated. He asked for additional prayers.  North Metro Telecommunications Commission – No report was given.  Police Governing Board – No report was given.  Fire Steering Committee – No report was given.  Other Mayor Reports – No report was given. XI. RECESS TO CLOSED EXECUTIVE SESSION Page 10 of 11 City of Centerville Council Work Session, City Council & Closed Exec. Meeting Minutes July 28, 2021 Mayor Love recessed the regularly scheduled City Council meeting at 8:24 p.m. and read the language allowing for the Closed Executive Session. CLOSED EXECUTIVE SESSION This portion of the meeting is closed pursuant to Minnesota State Statute 13D.05, subdivision 3 (c), and is permitted to determine the asking price for and to develop or consider offers or counteroffers for the sale of Block 7, Centerville. I. ROLL CALL Mayor Love, Council Members King, Koski, Lakso and Mosher along with Staff member Administrator Statz were present. II. DISCUSSION III. ADJOURN TO REGULAR CITY COUNCIL MEETING Motion by Council Member Koski, seconded by Council Member Moser to Adjourn the Closed Executive Session at 9:15 p.m. All in favor. Motion carried. CITY COUNCIL The regularly scheduled Council meeting reconvened at 9:16 p.m. XII. ADJOURNMENT Motion by Council Member King, seconded by Council Member Koski to Adjourn the Regularly Scheduled Council Meeting of July 28, 2021 at 9:16 p.m. All in favor. Motion carried. Respectfully submitted by City Clerk, Teresa Bender Page 11 of 11