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2022-01-11 CC Meeting MinutesMOUND CITY COUNCIL MINUTES January 11, 2022 The City Council of the City of Mound, Hennepin County, Minnesota, met in regular session on Tuesday, January 11, 2022 at 7:00 p.m. in the Council Chambers in the Centennial Building. Members present: Mayor Ray Salazar; Council members Phil Velsor, Paula Larson, Sherrie Pugh, and Jason Holt Members absent: None Others present: City Manager Eric Hoversten, Administrative Services Director Catherine Pausche, City Engineer Brian Simmons, Orono Police Sergeant Tim Sonnek, Jeff Wrede, Jason Zattler, Michelle Herrick, Mary Davis Consent agenda: All items listed under the Consent Agenda are considered to be routine in nature by the Council. There will be no separate discussion on these items unless a Councilmember or citizen so requests, in which event it will be removed from the Consent Agenda and considered in normal sequence. 1. Open meeting Mayor Salazar called the meeting to order at 7:00 p.m. 2. Pledae of Allegiance 3. Approve agenda MOTION by Larson, seconded by Velsor, to approve the agenda. All voted in favor. Motion carried. 4. Consent agenda MOTION by Velsor, seconded by Larson, to approve the consent agenda. Upon roll call vote, all voted in favor. Motion carried. A. Approve payment of claims in the amount of $652,483.72. B. Approve minutes: 12-14-21 regular meeting C. RESOLUTION NO. 22-01: RESOLUTION APPOINTING PAULA LARSON AS ACTING MAYOR FOR 2022 D. RESOLUTION NO. 22-02: RESOLUTION APPOINTING CITY COUNCIL MEMBERS AS REPRESENTATIVES OF THE CITY COUNCIL TO COMMITTEES AND COMMISSIONS FOR 2022 E. RESOLUTION NO. 22-03: RESOLUTION APPOINTING CATHERINE PAUSCHE AS THE ACTING CITY MANAGER FOR 2022 F. RESOLUTION NO. 22-04: RESOLUTION APPOINTING FIELD OFFICER ANDREW DRILLING AS ASSISTANT WEED INSPECTOR FOR 2022 Mound City Council Minutes — January 11, 2022 G. RESOLUTION NO. 22-05: RESOLUTION APPROVING THE PURCHASE OF BONDING AS PROVIDED UNDER MINNESOTA STATE STATUTE 412.111 H. RESOLUTION NO. 22-06: RESOLUTION DISGNATING THE OFFICIAL DEPOSITORIES FOR 2022 I. RESOLUTION NO. 22-07: RESOLUTION DESIGNATING THE LAKER AS THE OFFICIAL NEWSPAPER FOR 2022 J. Approve request for commercial kennel license for Mound Emergency Management Division, waiving the fee K. RESOLUTION NO. 22-08: RESOLUTION MAKING SELECTION NOT TO WAIVE THE STATUTORY TORT LIMITS FOR LIABILITY INSURANCE PURPOSES L. RESOLUTION NO. 22-09: RESOLUTION RECOMMENDING CONTINUATION OF CDBG FUNDING OF WESTONKA COMMUNITY ACTION NETWORK (WeCAN) M. RESOLUTION NO. 22-10: RESOLUTION EXPRESSING SUPPORT FOR CDBG FUNDING OF SENIOR COMMUNITY SERVICES N. Approve Hennepin County Assessor Open Book Meeting for Tuesday, April 26, 2022 from 8:00 a.m. to 4:30 pm O. Approve Special Meeting Workshops/Regular Schedule Changes in 2022 1) Schedule February 15, 2022 7:00 pm - Concurrent Planning Commission & City Council 2) Schedule April 19, 2022 6:30 PM Department Head Annual Reports to Council 3) Cancel August 9, 2022 City Council Regular Meeting due to primary election and reschedule to Wednesday, August 10, 2022 4) Schedule October 18, 2022 Special — 2023 Budget and Long Term Financial Plan 5) Cancel November 8, 2022 City Council Regular Meeting due to general election and reschedule to Wednesday, November 9, 2022 6) Cancel December 27, 2022 City Council Regular Meeting due to Christmas Holiday P. Approve pay request #2 in the amount of $6,764.77 to Bituminous Roadways for the 2021 Pavements Improvement Project PW 21-09 Q. RESOLUTION NO. 22-11 RESOLUTION APPROVING AMENDMENTS TO 2040 COMPREHENSIVE PLAN TO REGUIDE PROPERTIES AT 5084 AND 5098 THREE POINTS BOULEVARD FROM MEDIUM DENSITY RESIDENTIAL TO MIXED USE AND PUTTING THE COMPREHENSIVE PLAN AMENDMENT INTO EFFECT R. APPROVE ORDINANCE NO.01-2022 AMENDING DIVISION 2 OF CHAPTER 129 (ZONING ORDINANCE) PERTAINING TO ALLOWABLE USES AND ESTABLISHMENT OF C-1 GENERAL COMMERCIAL DISTRICT Mound City Council Minutes — January 11, 2022 S. RESOLUTION NO. 22-12 AUTHORIZING PUBLICATION OF AN ORDINANCE BY TITLE AND SUMMARY, AS IT RELATES TO ALLOWABLE USES AND ESTABLISHMENT OF C-1 GENERAL COMMERCIAL DISTRICT T. APPROVE ORDINANCE NO.02-2022 AMENDING THE CITY OF MOUND OFFICIAL ZONING MAP TO CHANGE THE ZONING DISTRICT TO C-1 GENERAL COMMERCIAL DISTRICT FOR A NUMBER OF PROPERTIES U. RESOLUTION NO. 22-13 AUTHORIZING PUBLICATION OF AN ORDINANCE BY TITLE AND SUMMARY, TO CHANGE THE ZONING DISTRICT TO C-1 GENERAL COMMERCIAL DISTRICT FOR A NUMBER OF PROPERTIES 5. Comments and suggestions from citizens present on any item not on the agenda. None were offered. 6. Orono Police Sergeant Tim Sonnek presenting the Mound December 2021 activity report Sergeant Sonnek said there were 334 cases in December for Mound versus 290 in 2020, with the most frequent calls including 48 medicals, 78 parking violations and 15 welfare checks. Sonnek said a mental health social worker was hired but then accepted another position, as did the two alternates. Sonnek said the new estimate is it will to take three months to fill and noted COVID is impacting staffing levels so things are busy. Holt said a friend in Minneapolis witnessed a car jacking on Christmas and was told only four squads were working on Christmas Day. Sonnek heard that five were working in that area which compares to five in the Orono Police Department on many shifts. Salazar noted this is an opportunity to educate vehicle owners to lock their vehicles, take remote openers indoors, and if it is a button or OnStar, lock the garage door if vehicle is left outside. Salazar noted he and the City Manager attended a Mayors meeting with the County that lasted over three hours and the take away was that too often it is catch and release with youth offenders that are stealing cars with multiple offenses but there are currently gaps in the system that delay prosecution. Salazar said it is not the Police's fault but he feels there needs to be more consequences and prevention. Salazar thanked the Police metro -wide for their efforts. Pugh commented that while Mound doesn't experience all of Minneapolis issues, we do need to address problems at home as things like drug dealing does happen. Sonnek agreed. 7. Discussion to consider and approve a resolution approving unsolicited Purchase Agreement to convey three City parcels Hoversten said tonight's action is consideration of a purchase agreement from a developer interested in developing the northeast corner of Lake Landon, which involves the purchase of parcels from one private owner with an interest in purchasing three fragment parcels owned by the City. Hoversten noted this area was included in the City Visions plan created in 1999 which had an aspiration to develop the area noting tonight's resolution is not to discern the proposed Mound City Council Minutes —January 11, 2022 development, but whether the City is willing to dispose of these properties to a known prospective development and whether the Council feels the offer is reasonable. Hoversten analyzed the $50,000 cash offer for the combined three parcels noting that they have not been professionally appraised due to previous lack of interest. Hoversten said staff used Hennepin County Property Information to develop a range of values per square foot based on the other parcels on the tax roll. Hoversten said the County increased the appraised value significantly in recent years which may be motivating the seller to dispose. Hoversten said the low end is $0.80 per square foot equal to $15K, the average of $2.00 square foot equal to $30,000, and the high end being the 2021 valuation of $4.95 per square foot equal to $82,000. Hoversten said the parcels have no real value unless they are combined to create a project noting the condition of the land does not suggest it is buildable leading staff to conclude the offer is reasonable. Hoversten said the parcels are not in a TIF district so the value is in returning them to the tax rolls into perpetuity. Hoversten said the Planning Commission should be allowed its procedural space to evaluate the proposed project, but he is here to answer any questions on the valuation or process to dispose of land. Holt agreed it is a separate issue, but asked if the sale is required to have the project move forward. Hoversten said they would likely have to modify their site plan if the parcels are not acquired. Holt asked how we got these parcels originally and Hoversten said the City is not in possession of the title and a title search will be performed to answer that question. Hoversten said in the 1960's the state offered all sorts of parcels to cities for conservation, etc., noting that any conditions on the deed were waived in the last few years. Holt said he just wanted to confirm we did not pay for the parcels and asked if the offer price is public, which Hoversten said not at this time but the listing price suggests why the Hennepin County Assessors increased the value. Holt asked what the tax value will be and Hoversten suggested looking at the total improvement which could be $30 - $40 million. Hoversten cautioned the decisions should be made on the benefit to the community and that the tax value improvement is secondary. Velsor noted this is one of the last developable areas of our community to create this level of tax value. Salazar noted there is a lack of quality rental options with amenities people desire and this is an option to fill a gap in the life -cycle housing spectrum. Pugh said she is concerned about process and getting ahead of the Planning Commission and asked if this is normal. Hoversten said in order to make application they have to have secured the parcels/site control so the agreement has the appropriate contingencies that does not guarantee approval of the project, but allows them to meet the threshold of site control to submit an application. Pugh asked about whether the three parcels impact the existing development abutting Commerce Boulevard. Hoversten said these three parcels are all beyond the wood line. Hoversten said the private property owner who held a substantial portion of all the parcels has apparently decided to break them up. Hoversten said this is based on the fact there has been many changes in ownership that have created established businesses committed to maintaining the existing buildings. Mound City Council Minutes — January 11, 2022 Hoversten said the decision is whether to participate in the conditional purchase agreement and whether the Council feels the offer is reasonable. Velsor asked about the other parcels, and Hoversten said there are two right of ways that they have asked to be vacated, noting the Council will act on that separately. Hoversten said there is a path for all of the requested approvals, noting vacations are typically part of the development application process. Holt asked to clarify the disposition of the drive aisle between the chiropractor and OLL. Hoversten said it is privately owned and not part of this application. Hoversten showed the two - public right of way access points, cautioning the Council not to get into the practical details and leave it to the developer to show alternatives during the planning application process. Larson said she feels the City is jumping the gun based on past policy and feels there are three ways to come up with the valuation, including Hennepin County valuation comparative, bank mortgage appraisal, and paying a professional appraiser to value it. Larson said she does not understand the City's hesitancy to spend the money to do an appraisal. Larson noted the recent sales of City owned property in other locations where there was a letter of request which prompted the City to notify abutting properties to give them the opportunity to bid on the adjacent properties. Larson said in this case the other abutting owner is Our Lady of the Lake and asked why they weren't given the opportunity to bid. Hoversten said Admin Policy 010 defines the procedures on disposals and directs staff to evaluate the merits of an offer and make a recommendation to Council on the benefit to the tax payers noting that facilitating redevelopment in the downtown can justify the modified approach. Velsor said when he served on the Planning Commission there were many instances where city disposed of public lands. Hoversten noted the three parcels are specifically identified in the Comprehensive Plan for the redevelopment track. Pausche gave background on the TIF district and how these were knocked down (removed) due to the Five Year Rule and lack of activity. Pausche noted consultant fees for appraising land can add up and noted during the Harbor District RFQ/I process the professional would not recommend an appraisal until the use/project was known. Larson asked for this sale to be treated the same as tax forfeit and offered to abutting property owners so that we don't give preferential treatment to developers that we would not give to our residents. Larson also noted that she did not receive the Planning Commission notices even though she owns commercial and residential property in the area. Mayor Salazar invited public comment. Jason Zattler, owner of Wiser Insurance Agency at 2345 Commerce Boulevard, said he is not against apartments, just the location of these apartments. Zattler asked if any private conversations were held with the developer. Hoversten said the Development Committee consisting of Mayor Salazar and Phil Velsor did meet with them. Zattler asked if that was recorded and or a public meeting to which Hoversten noted there wasn't a quorum of the Council present so it was not. Zattler asked about the progression of the approvals and noted the Met Council and County have not signed off. Mound City Council Minutes — January 11, 2022 Hoversten said it is no different then when Zattler asked what the bank building could be used for. Hoversten said Zattler did not meet with the Development Committee because he did not take the next step of a proposed project. Zattler asked what the role of the Planning Commission is for and Hoversten said the Development Committee is a non -decision -making body to give feedback to prospective developers. Zattler said his concern is the placement of a 104-unit apartment building on low-lying land and the other concerns outlined in an email he sent to the City Council. Salazar said he respects the role of the Planning Commission to vet the proposed project and this is not intended to preempt the concept without that review, noting the Planning Commission gave a long list of items to be addressed, including access. Salazar said this is just to give the applicant standing to propose the project without guarantee of approval. Salazar said he does not feel it would be appropriate to throw in the towel at this point without the proper vetting. Salazar encouraged Zattler to continue to express his concerns to the decision makers, including the Planning Commission. Salazar noted the Council listened to the citizens and did not approve an apartment development at Commerce Place which will now remain commercial under the new owner. Zattler said his main concerns are snow plowing, parking, congestion, and safety, including the school buses that transport children. Zattler said the existing owners abutting Commerce are all united in being against the project and will reevaluate the shared parking agreement with the City if this project goes forward. Michelle Herrick, 2630 Westedge Boulevard, said this is a resolution to approve an unsolicited purchase agreement and she disagrees with Staff's assessment that the City should take responsibility to get all usable and unusable parcels evaluated and appraised. Mary Davis, 3021 Inverness Lane, said Our Lady of the Lake was forced to build on Commerce and not near the lake because of the land. Davis noted that the Grace Family Center also had issues with the Watershed District. Davis said Our Lady of the Lake was not aware of the sale. Davis asked for the Mayor to clarify the comment on the 60-day deadline. Hoversten said the City has a 60-day deadline to act on a complete application but has the option to extend another 60 days, otherwise if no action or specification of action items are given to developer, the application is approved by default, per statute. Davis asked whether the parcels would ever be sold for another purpose like a walkway or trail. Hoversten said these particular parcels were consistently identified for redevelopment in the Comprehensive Plans of the last 20 — 30 years. Davis said it was a surprise that these parcels were going to be offered and people wonder why the City isn't focused on other more pertinent needs, like the Williams building. Davis said she is not against apartment buildings but just not on the corner by Our Lady of the Lake. Holt suggested Davis watch previous Council meetings on discussions on the Williams Store for which there has been much discussion and action. Holt said the resolution before the Council is a City agreement to sell the parcels for $50K if the applications are approved and asked what would happen if we tabled the action and did nothing. Hoversten said the City would have to figure out the process to consent to the applications or the applicant would have to revise their plans to not include the parcels. Velsor said this is an opportunity to get something for nothing. Mound City Council Minutes — January 11, 2022 Jason Zattler, 2345 Commerce Boulevard, asked whether approving this resolution essentially approves the project. Hoversten said no, it is just to give them standing on the land to work through the planning application process. Zattler said if it is not sold, then they would have to come back with 90 units which was projected in the Comprehensive Plan. Larson said she strongly suggests that the parcels be offered the same way other city -owned non -conforming parcels are, including being offered to abutting property owners with a sealed bid process in fairness to the other constituents whose offers are put through a bidding process with the other abutters. Hoversten said the policy allows for this approach and this does not set a precedence. Velsor said any buyer would have to purchase the Meisel property to make the sale makes sense for the City. Pugh asked Larson to clarify if she feels abutting property owners should be able to purchase the parcels without a plan to develop the lot and Larson said yes. Salazar said the only reason the City would consider selling the parcels is for a project. Zattler asked why the Commerce Boulevard property owners were not given the right to purchase the parcels for snow storage. Hoversten said the City's role, as stewards of public lands, is to determine the best and highest value, particularly in a redevelopment district. MOTION by Velsor, seconded by Salazar, to approve the following resolution. The following voted in favor: Salazar and Velsor, the following voted against: Larson and Holt. The following abstained: Pugh. Motion failed. 8. City Engineer Brian Simmons presenting discussion and action to approve of Pay item #3 in the amount of $33,471.11 to Derau Construction for the 2021 City Monumentation Project PW 21-13 Simmons said this item was not put on the consent agenda in order to give an update on the outstanding items, noting that this is not the final payment. Simmons noted there was a change order due to the need to relocate smaller utilities present that were not permitted to be where they were, so restitution will be pursued at a later date. Hoversten noted the original design called for reuse of the existing electricity that ended up having to be upgraded. Simmons said both issues caused an $8K overage for a total construction cost estimated at $79K and that a portion should be recovered by the utilities. Simmons said this is an opportunity to weigh in on quality of work and whether the Council feels the invoice should be paid. Velsor asked how long the retainage will be held and noted that the change order #2 to replace the conduit and cables seemed steep. Simmons said part of the overrun is duplicate staging costs due to the presence of unforeseen utilities and separately contracting the electrical would have created a third staging fee further increasing the total cost. Velsor asked that the in -ground lighting be adjusted to improve the monument's back -lit lighting. Salazar noted they were originally pointed down and he adjusted them up and Velsor noted that the ground landscape may ultimately dim the lights as well. Larson said she has had heard many complements and Velsor said he is excited for spring when the plantings bloom. Holt asked if the cap was repaired and Simmons said yes and confirmed the six-foot trees are per contract and more could be added in the future taking into consideration the underground utilities. Mound City Council Minutes — January 11, 2022 MOTION by Velsor, seconded by Pugh, to approve the Pay Item #3 in the amount of $33,471.11 to Derau Construction. All voted in favor. Motion carried. 9. Approve application for DNR "Protect Forests by Managing Ash for EAB" Grants Hoversten gave an overview of the Emerald Ash Borer (EAB) infestation, noting that it only affects Ash trees and EAB presence in Mound has been confirmed. Hoversten said there are treatment options, including a biocontrol solution where a small wasp species is cultivated that preys on the flying phase of the beetle (May — September). Hoversten stated EAB has been confirmed in areas including Three Points, Grandview, Tonkawood, Westedge and the Island. Hoversten added once an area is infested the influence area is a 10-mile radius. Hoversten said a public entity like Mound should start with a tree survey and drafting a forestry management plan that includes a specific EAB response action. Hoversten said impacted trees can be saved early on, but otherwise the decision is to remove or allow the trees to die and drop in place. Hoversten said removal is not recommended during the flying phase and the Department of Agriculture is also not recommending eradication and recommends replacing lost trees with diverse tree species. Hoversten said a no -match grant application has been offered by the DNR and the requested action is whether the City Staff should pursue the grant, noting it is a long shot in light of the typical environmental scoring factors. Hoversten said the grant can pay for the tree survey, drafting of a forestry management plan and potential tree removal and/or replanting. Pugh asked if the grant will allow the City to pay people to evaluate the trees and Hoversten said it would be to pay a vendor to do the evaluation. Pugh suggested the contractor should have to partner with an intergenerational educational group to learn to do the work. Hoversten said the grant application requires a certain level of expertise. MOTION by Larson, seconded by Pugh, to direct Staff to proceed with applying for the DNR grant. All voted in favor. Motion carried. 10. Action on a sixth amendment to employment agreement with City Manager Eric Hoversten Salazar summarized the actions taken at the December meeting based on the performance evaluation completed at that time. MOTION by Velsor, seconded by Pugh, to approve the sixth amendment to the employment agreement with City Manager Eric Hoversten. The following voted in favor: Salazar, Velsor, Pugh. The following voted against: Larson, Holt. Motion carried. 11. Information/Miscellaneous A. Comments/reports from Council members/City Manager: Hoversten noted the special meetings approved in the Consent Agenda, including one on February 15tn and noted all meetings are scheduled to take place in Council Chambers. Hoversten noted Saturday, January 29tn is the Polar Plunge at Surfside Park & Beach and that City Hall will be closed for the MLK Holiday on Monday, January 17tn 8 Mound City Council Minutes — January 11, 2022 Larson commented on the Fire Department's response to back to back mutual aid fire calls and wanted to thank them for the fabulous job. Velsor thanked Hoversten for keeping the Council updated as requested. B. Reports: Finance Department — December 2021 Liquor Store — December 2021 C. Minutes: Planning Commission: 11-16-21 D. Correspondence: 12. Adjourn MOTION by Velsor, seconded by Holt, to adjourn at 9:45 p.m. All voted in favor. Motion carried. r Mayor Raymond J. Salazar Attest: Kevin Kelly, Cl 71,