Loading...
HomeMy WebLinkAbout2025-01-22 WS & CC Meeting Minutes - Approved CITY OF CENTERVILLE WORK SESSION & COUNCIL MEETING January 22, 2025 Pursuant to due call and notice thereof, the City of Centerville held their Special Meeting Work Session prior to their Scheduled Council Meeting of January 22, 2025, commencing at 5:00 p.m. The Council held their regular City Council Meeting at 6:30 p.m., in Council Chambers and was live streamed by North Metro TV. WORK SESSION (5:00 PM) I. CALL TO ORDER Mayor Golden called the meeting to order at 5:00 p.m. 1. Roll Call PRESENT: Mayor Nancy Golden Council Member David Kubat Council Member Darrin Mosher Approved Council Member Anita Rios ABSENT: Council Member Russ Koski Junior Council Member Sophia Wynn (Non-Voting) STAFF: City Administrator, Mark Statz Assistant City Administrator, Athanasia Lewis Finance Director, Bruce DeJong II. DISCUSSION ITEMS 1. Executive Search Firm Interviews a.) MGT Impact Solutions (5:00 – 5:20) b.) DDA (David Drown Associates) (5:25-5:45) c.) GMP Consultants (5:50-6:10) d.) Discussion (6:15) The above executive search firms were asked a predetermined set of questions in a round-robin style interview process. III. RECESS Mayor Golden recessed the meeting at 6:25 p.m. allowing for a five (5) minute break prior to the starting of the regular Council meeting. The items below were discussed following the Adjournment of the regular meeting and Reconvening of the Work Session. 2. Amazon Noise Study City of Centerville City Council Work Session & Meeting Minutes January 22, 2025 3. Lino Lakes Water Repayment COUNCIL MEETING I. CALL TO ORDER Mayor Golden called the meeting to order at 6:30 p.m. 1. Roll Call PRESENT: Mayor Nancy Golden Council Member David Kubat Council Member Darrin Mosher Approved Council Member Anita Rios ABSENT: Council Member Russ Koski Junior Council Member Sophie Wynn (Non-Voting) STAFF: City Administrator, Mark Statz Assistant City Administrator, Athanasia Lewis Finance Director, Bruce DeJong City Attorney, Kurt Glaser II. PLEDGE OF ALLEGIANCE III. APPROVAL OF AGENDA Mayor Golden provided an opportunity for others to add or delete any items. Administrator Statz stated that staff had added Item #5, under Old Business as Solar on Public Buildings Grant – Suspension of Work Due to Federal Executive Order. Motion by Council Member Kubat, seconded by Council Member Rios to Approve the Agenda as presented. All in favor. Motion carried. IV. APPOINTMENTS & PRESENTATIONS 1. Review of Laws Related to the City Council (City Attorney) Attorney Glaser reviewed MN State Statute 10A.071, Certain Gifts by Lobbyists & Principals Prohibited, Open Meeting Law, Roberts Rules of Order and Remote Meeting Attendance. He reviewed the presentations that were included in the packet. V. PUBLIC HEARING 1. None. Page 2 of 16 City of Centerville City Council Work Session & Meeting Minutes January 22, 2025 VI. APPROVAL OF THE MINUTES 1. December 11, 2024, City Council Meeting Minutes Mayor Golden provided an opportunity for members to revise the minutes that were presented. Motion by Council Member Mosher, seconded by Council Member Kubat to approve the minutes of December 11, 2024, City Council Meeting Minutes as presented. All in favor. Motion carried. VII. CONSENT AGENDA 1. City of Centerville Claims through January 22, 2025 (Checks #37318-3756, & E2355-2361) 2. Centennial Lakes Police Department Claims through January 9, 2025 (Checks #15537- 15560, E2024001-E2025006 & Payroll Check #15534-15536) 3. Centennial Fire District Claims through January 14, 2025 (Checks #9832-9842) 4. Appointment of Planning & Zoning Commission Member Jim Carciofini 5. Minnesota Cities Stormwater Coalition (MCSC) Membership Renewal 6. Metro Cities Membership Renewal 7. Massage Establishment Renewal (Connor James Salon) 8. Massage Therapist Renewal (Soothing Sage Massage, LLC) Mayor Golden provided an opportunity for members to pull items for additional discussion. Motion by Council Member Kubat, seconded by Council Member Mosher, to Approve Consent Agenda as presented. All in favor. Motion carried. VIII. OLD BUSINESS 1. Leadership Transition Plan Administrator Statz explained that there was a large amount of transition going on and that the item will be on the agenda for several meetings. He stated that at the previous meeting, staff was requested to bring a better description of the Interim City Administrator position/role along with a salary recommendation. He stated that contained in Council’s packet was the Assistant City Administrator Job Description and the City Administrator Job Description. He stated that the original packet did not contain the City Administrator Job Description in error, but it was emailed to all members prior to the meeting. He stated that the two meld together as part of the Interim position and what was before them was a salary recommendation and confirming the duties following his departure. Mayor Golden stated that she understood that this was focusing on the transition, but asked how it affected the remaining staff, their duties and responsibilities - that would be vacated by the Assistant City Administrator and what does that look like. Administrator Statz stated what staff had looked at what was contained in the packet and adding additional hours to the Finance Director position who works 20 hours per week with the possibility of adding an additional 10 hours without making the position full-time Page 3 of 16 City of Centerville City Council Work Session & Meeting Minutes January 22, 2025 requiring paying of benefits. Administrator Statz stated that he felt that Finance Director DeJong was willing to work additional hours for, a period of time, to assist during this transition. He stated that staff also looked at scaling back some of the Assistant City Administrator’s role related to the external organizations that the city is a part of (e.g. Beyond the Yellow Ribbon, Chamber of Commerce, etc.). He explained that they are important to the operation, but not crucial. He stated that he felt that these meetings/participation in, would not be hurt in the long view if not attended. Administrator Statz also stated that what is a large amount of time for the Administrator is putting together packets for the various Committee/Commissions, preparing and attending for those meetings. He suggested that those meetings be less frequent during the transition (e.g. every other month meetings if there was nothing pressing or on an as needed basis). He stated that staff would be requesting the EDA members absorb additional duties such as visiting businesses, etc. Administrator Statz also stated that there would be a break in the History Niche in the front of Council Chambers as that has a rotating cycle of every six months. He also stated that the City Clerk position would be taking a larger role in updating the website and keeping it current. He stated that the administrative staff would be completing the specific duties needed during the transition period as staff was reducing from 4.5 full-time to 3.5 full-time staff. Mayor Golden stated that if the Assistant City Administrator is going to be the Interim City Administrator, and the Clerk is assuming some of the Assistant City Administrator’s duties and responsibilities or others, a clear direction on what responsibilities should follow under each individual and then staff/council needed to look at salary increases for everyone that has added additional duties/responsibilities. Administrator Statz stated perhaps, but he tended to look at the salary. He stated that he was the only salaried employee in the office, so when we look at increased workload for any administrative staff, if they work more hours, they get more pay for overtime as some of that comes into play. He stated that he would look at if there was something that raised a person’s level of responsibility, asking them to make larger and more important decisions would be warranted for temporary increase in pay. He stated that staff could explore that, but he felt that with what has been laid out for Council, the city would be fine and that staff is not asking anyone to take on an elevated role of responsibility (e.g. no one will be asked to supervise someone during the transition or lead another group of people/task force or committee) so in those terms, he did not see that right away, but it could be something to explore. Council Member Kubat asked if there was such a thing as a temp. for such a role as packets, not allowing for delays with Planning & Zoning as it requires a large amount of time and applications are time sensitive. Administrator Statz stated that maybe a bullet should be added to the memorandum contained in Council’s packet for leaning on consultants more as he previously handled such items (e.g. reviewing variance requests, writing memorandums, etc.). He stated rather than hiring a temporary employee to fill the City Administrator position, as he was a consultant, and he felt that consultants are engaged and knowledgeable with the community and its needs. Council Member Kubat asked if the interim position would then be hourly. Administrator Statz stated that it has to do with IRS rules rather than a choice, and that is what staff is proposing. He stated that Ms. Lewis would become a salaried employee following his last day of employment with the city. Additional discussion took place regarding packet preparation, etc. Administrator Statz stated that going from 4.5 full-time staff to 3.5 full-time staff would increase a large number of duties and responsibilities. He stated that the city has operated similarly in the past. He stated that the city was surviving but he was unsure if it were thriving. His opinion was that there was currently too much going on to continue with 3.5 full-time staff. He stated that he also felt that it was going to be a tough thing as the Comprehensive Plan update was coming up and meetings needed to continue but the hiring process would also be a process unless it is a quick turnaround. Additional discussion ensued regarding filling the position with another position - does not get you back to 4.5 full-time employees. Administrator Statz stated that if the Assistant City Administrator was named the Administrator, there Page 4 of 16 City of Centerville City Council Work Session & Meeting Minutes January 22, 2025 would be a commitment to backfill her position or something like it (e.g. another full-time staff member). Mayor Golden stated that they could be looking at adding additional staff also. Council Member Kubat asked when this would start and it was stated March-April. Administrator Statz stated exactly, as he would remain at the city to complete the Planning & Zoning and Parks & Recreation packets. Motion by Council Member Rios, seconded by Council Member Kubat, to Approve the Leadership Transition Plan as Presented with the Addition of Leaning on Consultants (City Planner and Engineer). Parks & Recreation Committee Chairperson Heidi Errickson-Grahek requested to address Council. She introduced herself and asked if the committee was included in the Leadership Transition Plan with regards to Parks & Recreation Committee meetings being decreased as she had significant reservations about how often they met as events and issues come quickly along with planning. She stated that there are times when things are a bit slower and that would be when meetings are unnecessary. The Committee would like to reserve the necessity of having a meeting to themselves. She stated that the City Clerk attends the meetings, that there was a minute taker and that it should be the Committee’s choice as they need to be responsive with the work that they complete. Administrator Statz stated that when there was an opportunity to cancel a meeting, staff would do that. He stated that he did appreciate the Chair’s concern and that it was a valid point. If there was an opportunity to cancel a meeting, that would free up the Clerk’s time in preparing that packet and allow her to complete other tasks. Mayor Golden stated that EDA was specifically mentioned. Administrator Statz re-read that portion of the memorandum and stated that he thought it could be more specific as staff was targeting the Planning & Zoning Commission and the EDA because Assistant Administrator Lewis is a bit more involved in those rather than the Parks & Recreation packet. He stated that it will be all hands-on deck and if there was an opportunity that arose, it may happen. He also stated that Chairperson Errickson-Grahek made a great point as they do have timely events and summer was coming. Administrator Statz stated that he felt that staff was committed in having as many meetings as needed, but staff would look for opportunities to cancel them if not needed. Mayor Golden asked if the motion needed to be more specific in the plan as EDA is the only meeting mentioned. Administrator Statz stated that it stated, “as needed” and he felt that it was appropriate. Council Member Kubat stated that Council would hear from members if meetings were not held and there were needs. He also stated that there would be discussion at those meetings prior to a meeting cancellation. All in favor. Motion carried. 2. Executive Search Firm Proposals Mayor Golden stated that she had concern on whether the group had enough discussion earlier at the Work Session to decide this evening. Council Member Rios asked if the item could be tabled to an additional Work Session. Mayor Golden stated that scheduling of a Work Session for the February 12, 2025 regular meeting is on the Agenda as it would be one last Work Session opportunity while Administrator Statz was still employed with the City. Council Member Kubat stated that he would prefer to either go entirely internal or a full-blown search. He did state that he was aware that the discussion was not completed. Mayor Golden stated that she believed that the discussion was not finished. City Attorney Glaser asked if there was anything else Council wanted from staff or any other source. Council Member Rios stated that she would like references of the search firms as they would be helpful and good information to compare as the reference materials provided are not equal across the board for all firms. Page 5 of 16 City of Centerville City Council Work Session & Meeting Minutes January 22, 2025 Administrator Statz asked if there was a firm that could be eliminated, and all Council Members concurred that references were not needed for DDA (David Drown Associates). Motion by Council Member Rios, seconded by Council Member Mosher to Table the Item Until the February 12, 2025, Work Session following its discussion. All in favor. Motion carried. 3. Fiore Tree Administrator Statz stated that this is a placemaking initiative that the Parks & Recreation Committee headed up with placemaking being a Strategic Goal of City Council. He stated that the committee looked at several options for placemaking at CornerStone Park. He explained that the park was designed to have a center piece installed originally or at some point. He stated that the original plan from 2007 included a fountain with a granite obelisk which may have been slightly out of hand. He stated that staff had always wanted to circle back to this to have something placed in the middle. He again stated that a number of different options were looked at (e.g. a bust of a prominent individual in the city, a veteran’s memorial, etc.) and what was landed on was the Fiore Tree. He stated that the committee and EDA endorsed the purchase and installation of the tree in an amount not to exceed $25,000. He explained that the tree is more a sculpture/hanging basket, metal tree art piece. Administrator Statz stated that they are custom made with various customization options (e.g. lights, audio, decorative carvings on the trunk of the tree, etc.) or a mesh of sculpture and plants all at the same time. He stated that council approved of moving forward with the project with a more detailed proposal and quote. He also stated that there is no contract in place and council does have the option to keep this item moving forward or go in a different direction. He stated that staff contained background information in the packet and Chairperson Errickson-Grahek is here if you have questions for her. Mayor Golden stated that in all transparency, she was the one that requested that the item be brought back to Council. She stated that her reasoning was the price tag, and she felt that it was quite high hearing from residents and that the city has lost a lot of natural trees due to the Emerald Ash Borer. She also stated that as moving forward with a $25,000 investment up front, then hanging flowers on it and that she felt the city would be limited on the flowers as to were we live due to the colder climate. She felt that when it has flowers on it, it looks nice and when not, it is just a sculpture. She questioned the cost of an irrigation system and stated that little maintenance does not mean no maintenance. She questioned whether it was Council’s direction to continue due to loosing so many trees and potentially we have something that ended up being recycled down the road and that is why she requested it to be placed on the agenda and hearing from residents who wanted to see more trees being planted. She stated that even the parks are pretty sparse on trees and a lot more ash trees are being removed. She provided Chairperson Errickson-Grahek an opportunity to speak. Chairperson Errickson-Grahek stated that it had been a long project for the committee, that she has been in contact with a local firm and has arranged an onsite meeting for February 4, 2025. She stated that at that time she will be provided with pricing and options. She also stated that when EDA stated that they wanted to consider assisting in the purchase or enhancements, the committee felt that was wonderful. Chairperson Errickson-Grahek stated that at the current time, specific pricing was not available. She stated that upon the visit, discussions will take place regarding lighting, seeing the specific trees on site and their availability. She also stated that the tree was a recommendation of a city Maintenance Technician as he was very invested in the parks and has worked very hard on the monument gardens. She reported that the committee is no complete in the process and intend in bring pricing forward prior to any purchase. Council Member Rios asked if any feedback was obtained from residents regarding the tree and Chairperson Errickson-Grahek stated that at times that can be difficult, but she attended four Page 6 of 16 City of Centerville City Council Work Session & Meeting Minutes January 22, 2025 events throughout the summer and obtained resident priorities for what they would like to see in their city. She stated that she was unsure if council had received this information but items that scored high were a community center, an art piece, a dog park, a disc golf course and pickleball courts just to name a few and the committee is looking at all of the items that fit into the parks, considering budget constraints and providing the amenities of small costs as their desire is to update the play structure at LaMotte Park which would include inclusive equipment. She also stated that council may be unaware that the committee is working on a park tree plan and is very aware that the community has lost a large amount of Ash trees and looking at repopulating the trees in the parks. Chairperson Errickson-Grahek stated that the committee has an extremely knowledgeable member on this subcommittee. The subcommittee is considering diversification, types, sizes, etc. Chairperson Errickson-Grahek stated that park dedication fees would be utilized for this plan. Council Member Kubat stated that he has been appointed as the committee’s liaison and has not had an opportunity to attend a meeting yet but wanted to know if the committee’s recommendation is to move forward with obtaining quotes as it was presented in September to the Council. Chairperson Errickson-Grahek stated that she believed to make an educated decision her hope would be that council would allow this item to move forward. She stated that she was wondering where it came from that it’s in question as it was already approved, and the mayor has made that clear. She also stated that a large amount of work has gone into this item, what could go into CornerStone Park as it is a very small park. She also stated that it is not a destination park, but it is extremely visible from the roadway. She explained that she was unsure whether council has seen one of these trees as they are gorgeous and with lighting it can be dressed up in the winter months. Council Member Kubat asked once the quotes are received, council still has to approve the purchase and City Administrator Statz concurred. Administrator Statz stated that felt that if the project was not something council wanted to support, the committee should be told rather than continuing to go forward as are rather large amount of time has been spent so far. Council Member Mosher stated that he would speak for the EDA board. He stated that when it came before him his head turned around as he felt it was expensive, but after a while the EDA and Council wanted a “wow” factor. He stated that the EDA/City has stated no to the entrance monuments as they were very expensive and once hearing what the EDA is all about and the support of the tree, he switched gears and said if we were going to do it, let’s make it spectacular. But as a council member people will be asking about the cost factor. He stated that he likes what it stands for, the city is not completing entrance monument at this time, the tree would give a “wow” factor for 1/2 or 1/3 of the price of the entrance monuments. He also stated that with the Main Street Market and ski show, trying to get people to the area and this would assist that. He stated that some people will like it, and some will not; some will say the money could be spent somewhere else. Chairperson Errickson-Grahek stated that the funding would be from Park Dedication fees. Council Member Mosher suggested that if the project was untaken then information should be contained in the newsletter that the funds were from the Park Dedication fees. He stated if it was going to be done then let’s do it big and if costs a little extra that EDA may be able to assist. Chairperson Errickson-Grahek stated that the committee was asked for options and pricing for the EDA and hoped that they would assist. Council Member Mosher stated that without the entrance monuments having a “wow” factor is what made him look at the project with a different view. Chairperson Errickson-Grahek invited the council to attend their meetings to obtain information on what they have working on and stated that the committee is proud of the work that they accomplish, and all of the work is based on the feedback received from citizens. She stated that the committee is focusing on the “best bang for the buck”. She stated that the committee was currently working on a proposal for a disc golf course for LaMotte Park as it was an addition to the park that would make it much more user friendly for all residents, along with pickleball courts as they are cost effective. She again reminded the council that they could contact her or any member of the committee to discuss the progress of the committee or to make suggestions. Page 7 of 16 City of Centerville City Council Work Session & Meeting Minutes January 22, 2025 Mayor Golden thanked the Chair for her time and stated that because the whole community lost so much with the Ash trees, could the city partner with a nursery or group purchasing if residents wanted to purchase trees as this would be a benefit for so many. Chairperson Errickson-Grahek stated that it was a possibility, the committee would talk about it and attempt to lay out a plan for such a program. Council Member Rios thanked the committee for their time and commitment associated with the decision around a Fiore Tree. She asked what had inspired the committee about the tree or what makes it feel like it is the thing for Centerville (e.g. placemaking) and what was the inspiration behind making the decision. Chair Errickson-Grahek stated that there were several factors that led the committee: gardens need improvement in CornerStone Park, continuation of the park’s beautification, the park being very visible, summer event/location, it being a show piece and attractive along with something people would enjoy. She stated that the park monument flower beds have been well received and are tended to by volunteers. She stated that she no feel that as people have been very positive with the monument flower beds that people would respond and differently with the installation of the tree. She did state that she understood the concern of funding. Mayor Golden ask that the committee bring back quotes for startup and routine maintenance as it would be helpful for planning purposes. Mayor Golden thanked the Chair for all her assistance on this item. Administrator Statz requested that Item #5 be addressed at this time as there were representatives of My Solar Pod in the audience who wanted to address the item. 4. Brian Drive Storm Pond Project Administrator Statz stated that this was an Ordinance to approve the rezoning with waiving the requirement of the second reading and rezoning the property P-1 (Public). 5. Solar on Public Buildings Grant – Suspension of Work Due to Federal Executive Order Administrator Statz stated that before members was information regarding the solar grant and he gave some background regarding obtaining a grant to install solar panels on the City Hall building which includes the Fire Hall. He stated that the panels were designed to provide the amount of electricity that is needed during the day, that there was no battery associated with the system and if there was excess power, then the power goes into the grid with the intention that it will reduce our grid costs as there will be limited electricity usage/costs. He stated that the grant is being made possible by the State of Minnesota for approximately 60% of the cost of the project and the city’s cost initially was 10% of the total cost ($11,750). Administrator Statz reviewed the grant agreement stating that the grant was $70,500 with $35,250 coming through as a federal tax credit and $11,750 being the city’s portion as matching funds. He stated that the city was all set to go with a pre-construction meeting arranged for the following day and two days ago the Presidential inauguration was, and he signed an Executive Order. He stated that contained in the informational handout was an email to My Solar Pod, the vendor, regarding “Unleashing American Energy Executive Order” which contained the language “Section 4 says revocation and revisions to certain presidential and regulatory actions, the following are revoked”. He stated that President Trump is revoking the Executive Orders from President Biden and the order is dated September 12, 2022, which is the implementation of the energy infrastructure provisions of the Inflation Reduction Act. He stated that this was an attempt to jump start the economy and complete some green energy type work with federal tax credits to allow for installation of solar panels on buildings. He stated that the program used to be available to taxpayers and then was extended to people who did not pay taxes/government agencies/cities, etc. He explained that it allowed the city to take in 30% of the project Page 8 of 16 City of Centerville City Council Work Session & Meeting Minutes January 22, 2025 cost with that tax credit. He stated that he had concerns as to whether those funds would still be available to the city. He stated that Section 7 says “terminating the new green deal, all agencies shall immediately pause the distribution of funds appropriated to the Inflation Reduction Act”. He also explained that these credits are from the Inflation Reduction Act and that the government will be pausing payment on that and that he did not know what that looks like long term. Administrator Statz stated that we entered into a contract with My Solar Pod, they make purchases and complete work the city will owe them for that and that it was his advice to pause the project and wait until everything gets sorted out to make sure that the $35,250 as part of grant. He stated that the State funding is there and not a part of the Inflation Reduction Act or federal funding as it only was the tax credits. Mr. Mouli Vaidyanathan, My Solar Pod-President/CEO, introduced himself to council and provided background of his company. He thanked the mayor and council for the opportunity to speak with them. He stated that Mr. Ivan Starenko, My Solar Pod-Snior Engineer, was also present. He reviewed the chronological events of the project stating that the project was kicked off in October of 2024 with the Public Works Director, Mr. Palzer. He stated that several documents were submitted to the state to obtain the grant, they received approval, signed the contract with the city, engineering has been completely completed, obtained approval from Xcel Energy and have not invoiced a penny to the city. He stated that My Solar Pod has purchase some essential equipment for the project, primarily because hedging on inflation and they have given a fixed cost on the project so they cannot cancel the project ad hoc. He stated that the equipment would generate 60,000 kw per year with roughly a $6,000 annual savings and that this would increase as the cost of electricity was increasing roughly at around 7-8%. Mr. Vaidyanathan stated that the tax credits have been there for the last 20 years with an extension to 2032 for all tax paying entities and that the 2022 Act was to add non-taxpaying entities to have the ability to participate in the program. He explained that the intent was that a city hall, school building, hospital or church do not change hands often, unlike businesses. He also explained that it takes 5-6 years for payback the intent was to go into these long-term buildings that will continuously still have electricity costs. Mr. Vaidyanathan stated that if the city were going to pause the project, My Solar Pod would have to invoice for the work that has been completed which is roughly $12,000 and they are unsure how long the pause would be as it could be one month, 10 years or 100 years and he felt that it would not be an appropriate legal way to sort this out as your counsel is present this evening, and he felt that an indefinite pause was not contractual. Council Member Kubat asked when the installation was scheduled to being under the current plan? Mr. Vaidyanathan stated in a week or two. Administrator Statz request the opportunity to follow up on several items and asked the question contractually how long can the project be paused and that is an open questions; he stated that as the contract is read, it certainly states that upon signing the agreement the City owes 10% of the project costs ($11,500) and roughly comes out to the costs that they have incurred at this time and that may be an obligation that the City has. He stated beyond that if the city were to cancel the project the city would be out $11,500 and pausing the contract would entail discussions with the contractor to determine their willingness to do that for a certain period of time such as a few months or weeks for these actions to play out a bit to ascertain what is factual in the Executive Order would be beneficial. He stated that what he did not want to do is see My Solar Pod purchase everything that needs to be purchased for the installation as he has not had an opportunity to ascertain what has been purchased and what has not been purchased. He did not want them to make purchases of tens of thousands of dollars. He stated that he was hopeful that things could be worked out and allows the city to continue to move forward with the contract at the contracted price. He stated that his recommendation was to pause the project and come back to the next meeting with additional Page 9 of 16 City of Centerville City Council Work Session & Meeting Minutes January 22, 2025 information, an agreement with the contractor as to how long of a pause that both can tolerate and cost implications to that. Administrator Statz stated that the other path is to direct staff to continue going forward with the contract/project with worst case scenario being that the city invests the $35,250 that would have been the tax credit portion but receive the $70,000 from the State and instead of a 3-4 year payback it may be a 9 or 10 year payback. Council Member Kubat stated is it the city’s analysis that it is a 3–4-year payback and Administrator Statz stated that there was a little bit of gray area there but look at the City’s investment of only $12,000. City Attorney Glaser stated that he has had an opportunity to review the contract but would prefer not to discuss it publicly. Council Member Kubat asked if there was any advice that Attorney Glaser could give regarding the legal risk of pausing versus terminating or continuing at this time, and he declined. Mr. Vaidyanathan stated that the contract price was approximately $117,000 with $70,500 with the State and a $6,000/year electricity savings so that it would be less than a 10-year payback. Mayor Golden stated that it would be a little less than 2 years but taking the $6,000/year, then it would be 7 to 8 years. Administrator Statz stated that 60,000 kw hours was mentioned is the anticipated energy that the system will produce, but the city will not be able to utilize all 60,000 kw hours. Mr. Vaidyanathan stated that the city could, and Administrator Statz stated that he respectfully disagreed due to the uniqueness of the agreement is that Xcel Energy allows you to put earned overages back onto the grid and that is not the case in this situation. He explained that if electricity went back to Xcel, they take it for free. Mr. Vaidyanathan respectfully disagreed as My Solar Pod has completed many projects for city halls and it is called net metering. He explained that if the city were to generate 60,000 kilowatt hours, even if on a Saturday or a Sunday, that meter is going to the grid, your meter is spinning backwards. He explained that if you look at the one-line diagram that was provided has a production meter that tells how much the system will generate, and we have done city and school buildings. He went on to explain that if it the cost of electricity was $.10 a kilowatt-hour and 60,000 kilowatt hours is around $6,000 today and that $.10 is going to increase with the chances of decrease being very low. Council Member Kubat requested that discussion going forward be continued offline or camera and Mayor Golden concurred. She stated that she felt that the item needed to be tabled for further discussion. Mr. Vaidyanathan stated that if the city were to pause the contract My Solar Pod would probably not be able to complete the project for the same price. Administrator Statz stated that there could be a cost to pausing the project and that it was a risk question: a $35,250 risk if the Executive Order stands, if a pause is pursued and that costs several thousands of dollars that would be the risk and Council/staff is attempting to evaluate in the next few weeks. Mayor Golden asked if there was an opportunity to received additional money from the State. Administrator Statz stated not under this grant. Council Member Rios asked when My Solar Pad was intending on commencing installation and Administrator Statz stated in several weeks. Council Member Kubat asked when it would be appropriate to close a meeting due to potential for litigation and receiving legal advice and Attorney Glaser stated at the next meeting in February. Attorney Glaser stated that the city’s only option to complete this task would be at a closed meeting at the next Page 10 of 16 City of Centerville City Council Work Session & Meeting Minutes January 22, 2025 meeting. He stated that Council/staff will probably know the status of the federal government. He also stated that this just came up today, we all have been looking at what the news media is trying to tell us, and it is a mixed bag right now because it is just two days in. Attorney Glaser stated that the city could have an answer to My Solar Pod and you can see that they are emotionally and not happy, but it is unless Council was willing to take the $35,250 risk today the pause would be the responsible fiscal course. Administrator Statz stated that what it really boiled down to is a choice to pause or not to pause and he thought the financial risk of pausing the project is less than the financial risk of moving forward. He stated that council clearly knows that it is $35,250 versus $11,750 or not much more than that. He stated that his evaluation of a risk is that the risk to forward is higher than the risk to pause. Council Member Kubat stated that it could be less. Administrator Statz again stated that pausing for a few days should not implicate the city in large additional costs in his view. Motion by Council Member Kubat to direct staff to work with My Solar Pod for reasonable pause to the contract that allows the city to consider this at the future meeting, but to suspend work in the alternative if a reasonable compromise cannot be reached and to work with the city attorney to mitigate any litigation risk that the city may have over the contract. Attorney Glaser asked if Council Member Kubat was clear with his motion. Council Member Kubat restated the motion by stating: work on the contract to try and work out a compromise to allow the City to move forward, if this becomes clearer by the next meeting and to bring back to the next meeting any further information that develops about both the pause and litigation risks about the contract that is in place as it stands. Attorney Glaser stated that it is still unclear but rather this evening; yes, there is a pause or no there is not. Council Member Kubat stated yes, but to work for a mutually acceptable manner with My Solar Pod. Attorney Glaser clarified that Council Member Kubat was stating that a pause was ok and Council Member Kubat concurred. Lengthy discussion ensued regarding an additional contract, increase in contract costs, contractual obligations and potential defenses for the loss of government funding. Attorney Glaser stated that right now it has not reared its ugly head, but the city does need to worry about it for real. He stated that it is unfortunate of the position that we have put this company in, but we did not really put it in that kind of position, that happened because of the federal government looks like it may pull the grant away and the city has some defenses if that were to come about. Administrator Statz stated that does the motion include a provision that if staff ascertain the risk of the cost to pause the project will exceed the $35,250 that the city should continue going forward with the project before staff comes back in two weeks. He stated that if they have good evidence that shows that they have got costs that the city will be responsible for that they got to move on now and they are going to show us that they have $50,000 worth of costs put into this and if the city does not do the project two weeks from now that we will be responsible for that and he stated that he just could not believe that and lets just say they do is council giving staff the authority to move forward with the project to avoid those costs. Council Member Kubat withdrew the motion. Additional discussion took place including if the project was to exceed the $35,250 and still owe them and not getting anything out of it would make sense to move ahead with the project otherwise the city is really throwing money into the wind, if the grant went away Page 11 of 16 City of Centerville City Council Work Session & Meeting Minutes January 22, 2025 would the city still want to have solar on the rooftop and if the answer was yes that it is an easy thing and no real risk involved, but if the answer is no that is where there is a challenge. It was stated that it would take longer to recoup our initial startup costs. Administrator Statz stated that he thinks that was the operative question – if he had brought forward that there was a grant for 60% of the costs for installation of solar on the building, would council want to complete it versus it was a really good idea when the city was receiving 90% of the costs with the Inflation Reduction Act. He stated that at 60% if still was quite a deal. Council Member Mosher had questions regarding selling back of unused energy versus battery storage as there was no battery storage with the system. Administrator Statz stated that he calculated 4,000 kw rather than 6,000 kw which would provide a quicker return on the investment for the city. There was discussion of the lifecycle of the system and Administrator Statz stated 20 years with a guarantee, but the guarantee diminishes over time along with efficiency. Council Member Kubat stated 60% would allow him to probably be in favor of the long-term investment as it was presented, if that was the only thing presented. Motion by Council Member Kubat to direct staff to move forward with the project and to inform council if anything changes. Motion failed due to lack of no second. No motion came forward and Attorney Glaser stated that in the absence of a motion, the contract would move forward. Motion by Council Member Mosher, seconded by Council Member Rios to direct staff to work with the contractor to establish a pause in the contract that could reasonably be accommodated without exceeding the risk of $35,000 (federal tax credit) and directing staff that if that is not feasible to move forward with the project. Roll call. Council Members Rios, Council Member Mosher and Mayor Golden Aye, Council Member Kubat Nay. Motion carried. 4. Brian Drive Storm Pond Project Administrator Statz stated that before the council was a stormwater/backyard drainage project at 6996 Brian Drive. He stated that he used the address as it was the property owner who initiated the conversation. He also stated that the pond does affect several neighboring properties. Administrator Statz wanted to bring the project to council’s attention and obtain direction. He stated that previously council approved moving forward with the project contingent upon completing permitting requirements. He reported that in the meantime, since council gave direction to go ahead and explore the project. He also reported that staff has spoken with the Rice Creek Watershed District (RCWD) and ascertained that the city does not need a permit which was a cost savings. Administrator Statz stated that staff has worked with the city’s engineers to determine whether that the ponds downstream would be affected, and they will not. He stated that staff feels that the project is viable/feasible project. He reported that a neighborhood meeting was held several months prior and ascertained whether three other abutting property owners or than 6996 Brian Drive would be amenable to a small assessment. He also reported that 6996 Brian Drive’s assessment would be $6,000 as they were the most benefited by the project and the other property owner’s assessment would be $2,000 as they would gain a small portion of yard as their situation is that their homes are higher and are not as affected as 6996 Brian Drive. He stated that in order to complete an assessment project similar to this, usually involves a feasibility study, several public hearings and a large amount of engineering time and effort. Administrator Statz stated that if all residents sign a Special Assessment Agreement/Waiver of Hearing & Appeal he believed that some of the step could be skipped and move the project forward without a large amount of cost. He stated that because the project was only $45,000, the city would rather not spend $25,000 on engineering. He also stated that if the waivers could be obtained Page 12 of 16 City of Centerville City Council Work Session & Meeting Minutes January 22, 2025 it would save the city some expenses. He felt that there was a good chance as there were only four residents, he spoke with all of them, and they seemed amenable. He stated that he was looking for direction on whether to direct staff on attempting to obtain the waivers taking a month or so and come back before them and determine whether to move forward for a final go ahead and if staff cannot obtain Special Assessment Agreements/Waiver of Hearing & Appeals and to determine whether to complete the project, specially assess the benefiting property owners, complete project with no assessments or not complete the project. He stated that if the city needed to go through the assessment process, the project should be re-evaluated as to whether it was worthy project. He explained that the estimate did not include any engineering (e.g. feasibility study, assessment roll, public hearings). Administrator Statz stated that his goal was to have a resolution to the matter by February 14, 2025. Motion by Council Member Rios, seconded by Council Member Mosher to direct staff to request Special Assessment Agreement/Waiver of Hearing & Appeals from the four benefiting properties associated with the proposed project. All in favor. Motion carried. IX. NEW BUSINESS rd 1. Traffic Control Change – 73 Street & Brian Drive Intersection Administrator Statz stated that the item was something that he wanted to being before Council prior to his leaving and something that the city has received several requests from residents regarding the traffic control in the area. He stated that it currently was a two-way stop, and he is recommending it be changed to a four-way stop. He stated that engineering theory would be no traffic control would be the best option rd and the safest for intersections. Administrator Statz stated that vehicles are used to stopping on 73 street and most of the traffic is local that would not be many accidents. He recommended the change. Mayor Golden asked for the best way to let residents know of the change and Administrator Statz stated that it will be posted either at the new sign or before the sign that would be there for 6 months to a year. Mayor Golden wanted to commend the community for bring this item to the city’s attention. Discussion ensued whether to switch the signage to stopping on Brian Drive. Motion by Council Member Mosher, seconded by Council Member Kubat to adopt the findings and recommendation of the City Engineer to proceed with the installation of stop signs at the rd intersection of Brian Drive & 73 Street on Brian Drive making this a 4-way stop. All in favor. Motion carried. 2. Schedule City Council Work Session – February 12, 2025 Administrator Statz stated that staff’s proposal was to add a Work Session to the February 12 meeting and to continue to have one on February 26. He stated that staff is open to suggestions, a lot going on and new Council Members. Motion by Council Member Mosher, seconded by Rios to Schedule a Work Session for February 12, 2025 . All in favor. Motion carried. 3. Res. #25 – 0XX – Ordering Feasibility Report – 2025 Thin Mill & Overlay Project Page 13 of 16 City of Centerville City Council Work Session & Meeting Minutes January 22, 2025 Administrator Statz stated that the city completed a project in 2022, and it had been a while. He stated that year previous, the city would seal coat and a new way to substitute a seal coat was an overlay. He stated that it has gone very well. Administrator Statz stated that seal coating would be completed every 5 years and at 1/3 of the cost versus spend completing an overlay every 15 years. He stated that it is felt that an overlay is a better product as some of the ruts are smoothed out in the roadway and he felt that the overlay block water from coming out of the roadway. Administrator Statz stated that he wanted to keep the program moving. He stated that Ms. Kellie Schellgel, Stantec, was available for questions this evening. He explained that staff had completed numerous similar projects with assessments associated with them and he recommended continuing that practice as he felt that if assessment where no larger charged for similar project there would be an unfairness. He stated that the current policy is to assess roughly 20% of the project. Council Member Mosher asked about the streets that would be included in the project. Ms. Schellgel introduced herself to council and stated that she was happy to take any questions. Ms. Schellgel named the streets that would be affected. Administrator Statz stated that more meetings will take place and there will be requirements that need to be met statutorily. Administrator Statz stated that in the past seal coating was not assessed. He also stated that many of the road that will be affected by the project were previously milled and overlaid in 2004 along with street reconstruction additional project that included the installation of a watermain so the individuals received assessments anywhere from $5,000-$20,000 but this will be the first mill and overlay for these same streets and the assessment is approximately $1,000 per each residence. Motion by Council Member Rios, seconded by Council Member Mosher to Adopt Res. #25-005 – Ordering Feasibility Report – 2025 Thin Mill & Overlay Project as presented. Council Member Kubat asked if the feasibility study included Stantec’s services. Administrator Statz stated that the next item covered that. All in favor. Motion carried. 4. Engineering Proposal – 2025 Thin Mill & Overlay Project Administrator Statz stated that the item was to enter into an agreement with Stantec and was an addendum to the ongoing services contract that is already in place with Stantec. He stated that the proposal as for the completion of the feasibility report, design, bidding phases of the project and as pointed out by Council Member Kubat an option for construction services. Administrator Statz stated that he would recommend the approval of the feasibility report, design and bidding portions of the proposal and wait on the construction services until staff’s ability is determined to take care of later in the summer as there has been a large amount of transition. He believed that staff had the talent to complete the construction services portion. Motion by Council Member Mosher, seconded by Council Member Kubat to Approve the Engineering Proposal as submitted except for Construction Services at this time. All in favor. Motion carried. X. COUNCIL/ADMINISTRATOR ANNOUNCEMETS Page 14 of 16 City of Centerville City Council Work Session & Meeting Minutes January 22, 2025 1. Administrator/Engineer Report – Administrator Statz stated that his report was contained in the packet and that he would be happy to address any questions from the Council. He provided the Council with a brief review. Assistant City Administrator Lewis reviewed the several portions of the Administrator’s Report. She also reported on the EDA, their programs and funding. 2. Council Reports a. Kubat – (i) Parks & Recreation Committee – Council Member Kubat gave no report. (ii) Centennial Fire District Steering Committee – Council Member Kubat gave no report. b. Koski – (i) Planning & Zoning Commission – Council Member Koski gave no report. (ii) Fire Steering Committee – Council Member Koski gave no report. c. Rios – (i) Economic Development Authority – Council Member Rios gave no report. d. Mosher – (i) Economic Development Authority – Council Member Mosher state that the board updated Council Member Rios on their programs and funding. (ii) Police Governing Board – Council Member Mosher gave no report. e. Golden – (i) Centennial Lakes Police Department Governing Board – Mayor Golden stated that their next meeting was February 10, 2025, and Council Member Mosher would also be attending. (ii) North Metro Telecommunications Commission– Mayor Golden state that they will be completing their interview with her shortly. (iii) Other Mayoral Reports – Mayor Golden gave no report. Administrator Statz stated that council did not adjourn the work session and if desired rather than finish that meeting following the council meeting, council could place the unfinished items on the next work session agenda for February 12, 2025 (Items 2 & 3 of the work session agenda). XI. ADJOURNMENT Motion by Council Member Kubat, seconded by Council Member Mosher to adjourn the meeting of January 22, 2025, at 8:50 p.m. WORK SESSION (Cont’d) Mayor Golden reconvened the Work Session at 8:51 p.m. 2. Amazon Noise Study & Escrow (as time allows) Page 15 of 16 City of Centerville City Council Work Session & Meeting Minutes January 22, 2025 Administrator Statz reviewed the presented materials contained in the packet with Council and he gave an update regarding discussions that he recently had with an Amazon Representative regarding the matter. Comments were received by staff and questions were answered accordingly. IV. Lino Lakes Water Repayment (as time allows) Administrator Statz reviewed the presented materials contained in the packet with Council. Comments were received by staff and questions were answered accordingly. City Attorney Glaser was directed to work with the City Attorney from the City of Lino Lakes regarding the matter. Respectfully submitted by City Clerk, Teresa Bender. Page 16 of 16