HomeMy WebLinkAbout2007 03-20 CC MINUTESMinutes of the Council Meeting
20 March 2007
The March, 2007 regular meeting of the City Council of the City of Gem Lake was called to order by
Mayor Emeott on Tuesday, March 20, 2007 at 7:09 p.m. in the first floor meeting room of Tousley Ford.
Mayor Erneott, Councilors Rasmussen, Watson, and..Artig-Swomley were present: Also present were
Bonding Financial Advisor, Todd Hagen. ofEhlers .& Associates,. Inc. and City Attorneys, Patrick Kelly and.
Trevor Oliver. Other members of the pubic were also in: attendance per the sign in sheet sent around the
room.
APPROVAL OF AGENDA AND MEETING MINUTES
Mayor Emeott called for additions, deletions andcorrections to the Agenda. No changes to the agenda.
were noted. Thefollowing actions were taken 1) Motion by Watson , Second by Rasmussen to accept the
agenda was unanimously .approved; 2) Motion by Rasmussen, Second by Artig-Swomley to approve the
Minutes of the March 20, 2007 City Council Meeting was unanimously approved:
PUBLIC NOTICES
There:were no public notices.
COMMITTEES REPORTS:
RESOLVED: Motion by Rasmussen, Second by Artig-Swomley :.to accept the written Planning
Commission Report was unanimously approved.
RESOLVED: Motion by Watson, Second by Artig-Swomley to accept the City Treasurer's Report was
unanimously approved.
NEW BUSINESS:
RESOLVED: Appointment of Council Members for Joint Vadnais Heights Meetings .- .2
Appointments and one Alternate: Mayor. Erneott explained that the City of Vadnais IIeiights has agreed
to .having joint meetingswith 2 representatives from the Vadnais Heights City Council and 2
representatives from the Gem Lake City Council. present. These specialmeetings will be to discuss joint
ventures:: between thetwo cities and services that may be needed from Vadnais Heights by Gem Lake.
Emeott noted that .Gem Lake is: also interested in using Vadnais Height's Planner for projects on the
Vadnais Heights/Gem Lake borders. In response to a question if the meetings are open to the public, Mayor
Emeott stated that they are open to the public. The date for the meetings will be published on the web site.
Motion by Artig-Swoniley, Second by Watson to approve appointments of Council Members for Joint
Vadnais Heights meetings as follows: 2 appointees: Chuck Watson. and Mayor Emeott, Tom Rasmussen as
analternate: was unanimously approved.
RESOLVED: Resolution 2007-06 Sale of .Approximately: $785,000 General Obligation Bond: Todd
Hagen ..of Ehlers & Associates, Inc., reviewed the Pre -Sale Report for the General Obligation Capital
Improvement Plan Bonds. He noted that the purpose of the. Bond is for. a 2007 Joint Use City Hall Building
to include a city hall for .the . City of Gem Lake, an interim town hats during renovation for White Bear
Township,and a spacefara county sheriff substation. The Bonds are being issued pursuant to Minnesota
Statutes; Chapter 475, to finance the 2007.capital expenditure of approximately $1,1.29,463, of which
White Bear. Township will provide onethird for the Joint Use City Ilall Building described in the city's 5-
year Capital Irnprovement Plan dated February 20, 2007. Financing the Joint Use City Hall Building
requires a bond issue in the amount of S785,000 and a one-third (/2) cash contributionin the amount of
$376,488 from White Bear Township.
Since construction bids have not been received todate, the City reserves the right to increase or decrease
the principal amount of the Bonds on the dayof sale, in increments of $5,000 each. Increases or decreases
may be made in any maturity. The Plan gave preliminary approval for the issuance of Bonds in an amount
not to exceed $850,000. Principal on the Bonds will be. due on February 1 in the years 2009 through 2028.
13onds maturing February. 1, 2018, and thereafter will be subject to prepayment at the discretion of the City
on February 1, 2017.
Todd Ehlers noted that Pre -Sale review wasdone on this date; .distribute official statement week of April 9;
conference withrating agency — non -rated; Bond Sale: May 7, 2007, 2007; Estimated Closing Date: May.
Todd Ehlers will come back on April 24th with an adjusted bond. issue. A Council Workshop willbe, held at
7:00 p.m.,. May 7, 2007 regarding the Bond Sale. In response to a question regarding theinterest rate for
the Bond, it was explained that it is expected to be 4.2% for 20 year bond.
Mayor Erneott explained that.the.$4:5,000 yearly payment needed in the first 1:0 years•of bond.re-payment.
could be. met by.the savings ofapproxiinately $45,000.bytrimming City administration costs from last. year
which cost. the'City $96,000: Administrative services being provided: by White Bear Township: is proposed
to .be approximately $45,000 -. $50,000 per year.
Watson rioted that this is...a unique opportunity for the City of Gem Lake to partner with White Bear
Township. The..shared services will. be good for :Gem Lake and is. an. opportunity to: keep taxes as low as
possible. He.noted that there were extensive meetings..last December, on the Gein.Lake 2007 budget and
what was envisioned in the .next four years financially. The only. change will heir], shared services arid
police and. tire: protection. Looking at the cost of administration, a clear savings was recognized in these
shared services. The City i.s trying: tobe honest and fiscally responsible:
In response to a. question .if. White Bear Township needs the. building, what then? The. City Attorney
explained that this is a unique venture and that the City of Gem Lake does not have to be afraid of
absorption.
Rasmussen stated that the City of Gem.. Lake needs a City Hail. It has been made clear in recent events that.
Gem Lake willbe a more properly functioning City and the Council is working on doing that in a sensible
manner. Motion by Watson, Second by Artig-Swomley to approve Resolution 2007-06 Sale of.
Approximately S785,000 General Obligation Bond was unanimously approved.
APPROVED: S,E.H work. On Sewer Maintenance. procedure , $4000 guate. Unanimously approved.
RESOLVED: Resolution 2007-07: Sewer baekupleleanup iinsuraitce All present were informed that
insurance can be purchased from the Minnesota League. of Cities for this type of coverage. It Was noted
that a no-fault: insurance policy of S.1.0,000 per structure could be used to clean up the building:dainaged by
a City sewer backup if the owner's insurance.does not cover the clean up: To get this insurance City Main
sewers need to be cleaned (flushed) on a regular basis and a report of a periodic television scarf of all of the.
sewers needs. to be .provided to: the insurance company. Motion by Artig-Swomley, Second by Rasmussen
to adopt: Resolution 2007-07 Sewer hackupicleanup:insurance was unanimously approved.
RESOLVED: Resolution 2007-08 Variance to measure ground level ..for Building Height
Measurement in Hillary Farm: Trevor Oliver, Our City Attorney, noted that the method of determining
the building height. would be. included in the.proposed :2R` arnendment.to the Developers Agreement so that
no Resolution was necessary
RESOLVED:. Proposed 2nd Amendment to Developer's Agreement — Hillary Farm:
Discussionwas held on the items in the proposed god amendment to. the Developers agreement, prepared by
the Ge:m:Lake City attorney for the Hillary. Farzn. development. The matter of how to measure the building
height in the Hillary Farm development, that was proposed in resolution 2007-08, was included in this
revised developers agreement. In response to a question regarding the detaclunentlannexation suit, Trevor
Oliver. of Kelly and Fawcett stated that with the verified amendment to the Developers Agreement the suit
will be dropped. Patrick Kelly stated thatthere is an understanding between the parties and that all should
be in order within 7 days. Motion by Rasmussen, Second by Artig-Swoinley to approve the Proposed 2°d
amendment to Developer's Agreement — HilIary Farm was unanimously approved by voice vote.
PENDING: Approval of S.E.H work. on Gem Lake MS4 Report - $8,000 quote: Mayor Emeott noted
that the City of Gem Lake is responsible for all storm wateractivity in the city eachyear and the .presenting
ofa public report:. on their activity. The Gem Lake city engineer (SEH) can provide "services to prepare and
present thisreport,but the esti;nated costto do thishas been quoted at $8,000.00. However, there is no
provision in the 2007 budget for this $8,000 expense for presenting the yearly report: to the public required
by the MPCA. Members of the City Council felt that this was a large sum, and wanted details on all the
items that will be done as part of this quote.
It was reported that SEH will also provide the use of S.E.H. reporting computerized on-line system for
preparing this report presentlyand in the future as part of this $ 8,00.0.00. amount. This system could reduce
the cost of doing this report nextyear as allactivities that occur during the year can be recorded, as they
occur, and a report prepared from this data. A property owner asked if thereis something that a resident of
Gem Lake could do, at a lower cost, The answer. was "probably not" as most of work was "engineering
type work". Motion by Watson, Second by Rasmussen to table approval of S:E:FH, Work on Gem Lake
MS4 Report - $8,000 quote was unanimously approved. SEH personnel will be invited to the May City
Council meeting to: further explain the costs and work involved.
RESOLVED: Resolution 2007-09 Worker's Compensation for 1Vlayor and Council Members: Motion
by Artig-Swoinley, Second by Watson to. adopt Resolution 2007-9 Worker's Compensation for Mayor and
Council Members was unanimously approved.
RESOLVED:. Magnuson & Associates. Claim for Services Performed Tanuary 17, 2007 through
February 2007: Therewas discussion regarding the claim for services for $ 1,770.60 for these services.
Mayor Emeott noted that when Fritz Magnuson/Magnuson and Associates was terminated, he was offered a
Memorandum of Understanding that provided for an agreed upon amount that would be paid in the interim
period, but hedid not accept the memorandum. Mayor Emeott stated that legally,. the City of Gem Lake
could stoppayingfor any services after January 1611
, because the Memorandum of Understanding was not
signed. After discussion itwas the consensus thatnomore time should be spent on the matter: Motion by
Watson, Second by Rasmussen to. approve Magnuson & Associates claim for services. performed January
17 through February 2007.was approved by an aye vote by Watson, Artig-Swomley and Rasmussen. Nay:
Mayor Emeott.
PENDING: Distribution of Charitable Gambling proceeds from.2006..in the amount of $1,832.00.
Tabled until next month's City Council meeting;
OLD BUSINESS:
RESOLVED: Tax Anticipation Bond ($100,000) Mayor Emeott noted that this bond will probably
not be needed.
RESOLVED: Hoffman Corner Oil Tobacco License Public. Hearing. Mayor Emeott noted that the
problem has been solved because the business has closed.
PRESENTATIONS FROM. THE FLOOR:
City Treasurer report: Tom I4eily, White Bear Township Fnance Officer and Gem Lake City Treasurer,
introduced himself and explained the procedure which is :being usedto process payment of bills for Gem
Lake. In response to a question regarding sewer and licensing bills which have not been received yet, Tom
Kelly reported that they should be entered into the system this week and that the customers will not be held
responsible for the delinquent billings. He noted that the Treasurer's Report is detailed for the Council...
Torn Kelly then reviewed the list of current investments. Henoted that there are three Certificate of
Deposits; one in the General Fund; one in Parks and Playgrounds and one in .the Sewer Fund. He noted that
2 of the; CD's expire this week and one next month. In response toa: question if there wouldbe monthly
reports, Mayor Emeott stated that there would be at least quarterly reports.
In response to a question regarding the expenditure for planning/zoning and buildinginspections, it was
noted that $400 was budgeted and expenditures are already at S287,00. Kelly explained that this is only the
expenditures and in the future the budget will be different as there are revenues coining in to pay for
inspections.
In response to a question regarding the procedure for segregation of duties .in. the Finance Office, Tom
Kelly explained that the. White Bear Township Finance Officer, Accounting Clerk and Administrative Staff
are all actively. involved. One person is not responsible for any single procedure, and that there is always at
least a second person involved. Tom Kelly reviewed the procedures for receipts and deposits and other
financial activity. He explainedthat there is more in legal fees due to annexation issues. Kelly distributed
a handout of the new computer system and explained the accounting system.
In response to a question regarding payment for the Prosecuting Attorney, Kelly explained that they are
reimbursed on an hourly basis and not by retainer. IIe noted that the Prosecutor's office handles traffic
fines; The City. of Gem Lake will receive money from :the fines to offset this cost, There is an .agreement
with the.. Courts that a percentage will go to. Getn Lake. .Heexplained that the Courts, the County, and
Gem Lake will share revenue from the "fines.
City Attorney's report:. Patrick Kelly, City Attorney, reviewed jurisdictional issues of the Sheriff's
Department. They will provide a report on what is going on, Regarding patrol of Gem Lake, Kelly stated
that the City can ask for spot patrol for targeted areas. This would be part of the patrol service provided by
the Sheriffs Department and the cost would not go. up. In response to a question regarding the photo
system for running red lights, Kelly reported that the system was not approved.
Question on issuance of licenses by the City: In response to a question regarding licensing, Mayor
Ellicott stated thatthe licenses must be approved by the State and that all licenses' are accounted for and
have been submitted to the State. City Treasurer, Tom Kelly explained that the White Bear Town's
paralegal handles all licensing procedures.
FUTURE EVENTS AND COUNCIL MEETINGS:
Bid Opening for Construction of City Hall Project April 19, 2007 at 10:00 AM: Request for bids will.
be printed in the White Bear Press and the Construction Bulletin.
Next Council Meeting. -- Tuesday, April 17, 2007 at 7;00 p.m.: The next Council Meeting willbe
changed to Tuesday,. April 24, 2007 so that the meeting will occur after the bid opening.
Adjourn: Motion by Watson, Second by Artig-Swomley to adjourn the meeting at 9:27 p.m.
AUTHORIZED:
APPROVED:
ATTEST: A,,T��TES�/
Joan J. Clemens c�'aul' i m ott�
Recording Secretary Mayor
Certified Copy
ATTENDEES AT THE MARCH 20, GEM LAKE CITY COUNCIL MEETING:
John Birkeland
2703 So Riviera Drive
White Bear, MN 55110
651-341-8666
Justin Gese
S.E.H. — City Engineer
Beth and Steve Herzog.
1433 Goose Lake Road
Gem Lake, MN
Bob and Kim Uzpen
3646 Big. Fox Road
Gem Lake
651-476-8310
Todd Hagen
Ehlers & Associates, Inc.
Mark .Sweet
3756 Big Fox Road
Gem Lake.
651-653-8205