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2023-12-12 CC Meeting MinutesMOUND CITY COUNCIL MINUTES December 12, 2023 The City Council of the City of Mound, Hennepin County, Minnesota, met in regular session on Tuesday, December 12, 2023 at 7:00 p.m. in the Council Chambers in the Centennial Building. Members present: Mayor Jason Holt, Council Members, Sherrie Pugh, Paula Larson, Kathy McEnaney and Kevin Castellano. Members absent: None. Others present: City Manager Eric Hoversten, Deputy City Manager Maggie Reisdorf, Finance Director Noah Iverson, City Clerk Kevin Kelly, City Attorney Scott Landsman, Community Development Director Sarah Smith, Assistant City Planner Rita Trapp, City Engineer Brian Simmons, Assistant City Engineer Matt Bauman, Colin Charlson, Christine Charlson, Kristen Rash, Thomas Rash, John Gehlen, Olivia Adam, Grant and Julie Johnson, Tiffany Beitler. 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 Holt called the meeting to order at 7:00 p.m. 2. Pledae of Alleqiance 3. Approve agenda Hoversten said he had two amendments to the agenda; the Levy resolution correction which is replacement page 2874.1 and the inclusion of Item 5.5, the Westonka district student power point presentation. Holt also had an amendment to the agenda, a special resolution, Item 3.5, to acknowledge City Manager Eric Hoversten for his hard work on behalf of the City for eight years of service. The Council members each took turns reading the resolution to those in attendance. MOTION by Pugh, seconded by Castellano, to approve the amended agenda. All voted in favor. Motion carried. 3.5 MOTION by Larson, seconded by Pugh, to approve the Special Resolution to acknowledge Eric Hoversten's exemplary service to the City. All voted in favor. Motion carried. RESOLUTION NO. 23-99: A RESOLUTION OF THE CITY OF MOUND RECOGNIZING CITY MANAGER ERIC HOVERSTEN FOR HIS EXEMPLARY SERVICE Hoversten said he wanted to thank the community, the Council and staff for the privilege to work on behalf of the City. 4. Consent agenda MOTION by Larson, seconded by McEnaney, to approve the amended consent agenda. Upon roll call vote, all voted in favor. Motion carried. Mound City Council Minutes — December 12, 2023 A. Approve payment of claims in the amount of $750,776.04. B. Approve minutes: 11-28-23 Regular Meeting 11-29-23 Special Meeting C. RESOLUTION NO. 23-100: RESOLUTION APPROVING PERMITS FOR 2024 POLAR PLUNGE ON LAKE MINNETONKA ON SATURDAY, JANUARY 27, 2024 D. Approve appointment of Kristin Young to fill vacancy for 2-year term beginning January 1, 2024 and ending December 31, 2026 and reappointments of Jason Baker and Samantha Wacker to the Mound Planning Commission for three-year terms beginning January 1, 2024 and ending December 31, 2027 E. PULLED F. RESOLUTION NO. 23-101: RESOLUTION APPROVING VARIANCES FOR PROPERTY AT 2001 ARBOR LANE PLANNING CASE NO. 23-15 PID NO. 13-117-24-41-0030 G. RESOLUTION NO. 23-102: RESOLUTION APPROVING CONTRIBUTIONS FOR 2023 H. Approve Public Works project pay items in the amounts of: 1. $12,417.62 Valley Paving as the 5th and Final Payment for the 2022 Surfside Park Depot Area Improvements PW 22-09 2. $5,433.00 to Thule Specialty Contracting as the 3rd and Final Payment for the 2023 Manhole Rehabilitation Project PW 23-04 3. $87,691.01 to Pember Companies as the 3rd Payment for the 2022 Liftstation Improvements Project, PW 22-03 4.5 E. (Pulled Item) Pugh said the Council has been discussing the old downtown and that the City needs coordination and a strategic plan that represents the interest of the community and businesses. Pugh would like the City Council to talk about the ambiance, traffic and appearance of the area of the old downtown. Hoversten said the parking situation has not changed but the MN Lakes Bank wanted a more regular approach for its staff and client parking. Hoversten said there is also access for the general public to the Farmers Market. Hoversten said Marion Street will tie in with the access to Old Shoreline drive with a connection to Commerce Blvd. Hoversten said the City wants to have organic public parking on Old Shoreline. Hoversten added there will be no public parking on Marion to ensure sufficient area for emergency vehicles. MOTION by Castellano, seconded by Larson, to approve item 4.5, the following resolution. All voted in favor. Motion carried. RESOLUTION NO. 23-103: RESOLUTION APPROVING PARKING AND ACCESS LICENSE AGREEMENT WITH MN LAKES BANK 5. Comments and suggestions from citizens present on any item not on the agenda. Mound City Council Minutes — December 12. 2023 None one came forward. 5.5 Olivia Adam presented the Westonka District Report. Adam said she is in the Senior Class and is the 2023-2024 Vice President of the Student Senate. Adam listed the following: Activities - • WeCan Drive - December 6-13 students will be collecting cleaning supplies and care items • Prom 2024 - Jr Prom scheduled for Saturday, May 4, 2024 • Count on Change — Reality Fair on Student Financial Literacy • DECA — District Competition • Letters of Love — December 1st Cookie fundraiser • Rotary — Operation Gratitude • Link Crew — 11 t1/12th grade hosts of 8th/91h grade students • Eli Hart Foundation Chapter projects • Winter Wonderland Fundraiser January 21 st for EH Athletics — • Winter sports on -going Arts - • MWHS Theatre — "Codacrome" is the play this season • Spring Musical — Will be presenting "Footloose" • Westonka Community Theatre with a spring children's show • MWHS Choir • Band in Westonka — December 311 and December 4th winter concerts held Academics - • Two students received ExCel Award Winners Westonka Update — Staff have held building visits which were completed to prepare for MWHS building projects 6. Orono Police Department September October & November 2023 Activity Reports: Orono Police Department (OPD) Sergeant Hennessy said the OPD overall has been busy with over 1000 total calls for service in 2023. Hennessy said Mound has experienced a lesser number of calls this year. Hennessy added that there has been a significant decrease in homelessness through the OPD working with social service agencies. McEnaney asked about OPD activity regarding ticketing for winter parking. Hennessy said the OPD has been very active and there have been a lessened number of cars on City streets overnight. 7. Consider/approve Eli Hart Foundation Donation Agreement Hoversten said this is a formal discussion and action on a donation agreement for the playground improvement at Surfside Park. Hoversten said the site improvements provided by the City are integral to the playground project. Hoversten said the Eli Hart Foundation (EHF) has raised a significant amount of funds but not enough for the total project. Hoversten said the staff recommendation is to use Community Improvement reserve funds which are at $207K at the end of 2023. Hoversten said the intent after the budget discussion is to build this up to Mound City Council Minutes — December 12, 2023 $325k and take a fund transfer of $60K from the Liquor Fund to contribute to the completion of a high value amenity improvement to the community. Hoversten said this is a just investment and is an offset to the levy. Hoversten said to use the Community Improvement Fund which will hold a balance at the end of the project to be at $412K. Hoversten said the playground is revenue neutral and getting started now will allow the project to be ready for the big park events over the summer. Tiffany Beitler, one of the co-founders of the EHF, listed site plan changes based on a previous meeting discussion with the Council. Those changes are to: • Round corners of the playground surface • Preserve more green space • Reduced poured in place surface • Build an accessible sidewalk around the entire area McEnaney said she thinks the playground footprint is too big, takes up too much green space, creates parking issues and is too big a burden on tax payers. McEnaney said she is impressed with the fundraising done by the EHF. Pugh said she wanted to congratulate the EHF for rallying the community and creating community spirit. Holt said he toured the municipal liquor when he first started on Council and said people need to know where the funds from the Liquor Store go. Hoversten said the liquor store is rated as the highest gross profit liquor store in the metro area. Holt said the Parks Commission unanimously approved this plan and is in full support of the plan. Pugh added the ADA access in the plan isn't very common at other parks. MOTION by Castellano, seconded by Pugh, to approve the Eli Hart Foundation Donation Agreement. Holt, Pugh and Castellano voted in favor. Larson and McEnaney voted no. Motion carried. APPROVE RESOLUTION NO. 23-104: RESOLUTION APPROVING A DONATION AGREEMENT FOR SURFSIDE PARK 8. Consider/approve Wolner Field Lease Amend/Renew Hoversten said there is a resolution authorizing a use agreement with the Westona Youth Baseball (WYB) Association. Hoversten said the WYB started as a little league and this programming has grown over the years. Hoversten said the organization is responsible for maintenance and other private improvements. Larson said there was one field at the beginning of Wolner Field and was named after a local judge. MOTION by Castellano, seconded by Pugh, to approve the following resolution. All voted in favor. Motion carried. APPROVE RESOLUTION NO. 23-105: RESOLUTION APPROVING A LEASE AGREEMENT FOR THE LEASE OF THE WOLNER FIELD COMPLEX 9. Planning Commission Recommendation A. Action on resolution affirming Planning Commission recommendation determining sale Of Outlot B, Mound Harbor to adjacent property owner to be consistent with the Mound Comprehensive Plan Mound City Council Minutes — December 12, 2023 Landsman said Council member Larson will recuse herself due to a personal financial interest in the property. Rita Trapp, City Planning Consultant said the Planning Commission (PC) determined that the sale is consistent with the City 2040 Comprehensive Plan. Trapp said Outlot B was purchased by the City as it has been intended to be added to adjacent properties for development. Trapp said this property is in the mixed -use area and is in a center of activity for retail and commercial activity. MOTION by McEnaney, seconded by Castellano, to approve the following resolution. All voted in favor. Motion carried. APPROVE RESOLUTION NO. 23-106: RESOLUTION AFFIRMING PLANNING COMMISSION RECOMMENDATION DETERMINING SALE OF OUTLOT B, MOUND HARBOR TO ADJACENT OWNER TO BE CONSISTENT WITH THE MOUND COMPREHENSIVE PLAN B. City Council discussion/action on purchase agreement offer from Colin Charlson of 4 C's Equity, LLC to buy City property known as Outlot B, Mound Hoversten said the Comprehensive Plan question has been answered and the Council can close the meeting to discuss the land sale. Hoversten said the City can discuss in the closed meeting setting the terms of the purchase agreement (PA). Landsman said he suggests the City Council go into closed session to talk about the PA. Colin Charlson, 5749 Sunnybrook Lane, Minnetrista, asked Hoversten why the City would purchase property like Outlot B. Hoversten replied it was purchased to make improvements to the City and encourage private outcomes where they have a public benefit to the City. Smith said the property was purchased in the late 1990's or early 2000's by the City. Charlson said he is a small business owner, not a developer, and would like to make Outlot B a special place. Mayor Holt read a statement from MN Statute Section 13D.05, subdivision 3C, regarding the closing of the meeting. Holt asked for a motion to close the meeting. MOTION by Castellano, seconded by McEnaney, to close the meeting. Holt closed the meeting at 8:07. Holt closed the meeting at 8:07. Mayor Holt re -opened the meeting at 9:20. Landsman said the evaluation of Outlot B was completed by the Council. Holt said the Council is interested in a counter offer and instructed Charlson to contact Hoversten with the details of the counter offer. 10. Discussion/action to approve 2024- 2026 Public Works Bargaining Unity Agreement with the Teamsters, Local 320 Hoversten said the ratification of staff and Teamsters union tentative contract. Hoversten said the City has been working on the 2021-2023 contract which ends at end of December. Hoversten said the current contract had a 3% COLA each year of the contract while the rest of the wage and salary market has increased above that rate. Hoversten said there was two main objectives to keep overtime pay and the on -call stipend. Hoversten said the City pays for on -call time to specific staff. Hoversten said the Stipend works as follows: Mound City Council Minutes — December 12, 2023 • 1.5 x the employees hourly wage is provided for on -call nights and Saturdays 2.5 x the employees hourly wage is provided on Sundays • 3.5 x the employees hourly wage is provided on Holidays. Hoversten said most cities pay 1.5 x the wage for overtime through the entire week and 2.5 x the wage for some Holidays. Hoversten said the City provides 1.5, 2.5 and 3.5 x the wage for overtime pay. Hoversten said the idea in the negotiation was to preserve the equal access of all PW staff to have equal access to the on -call activity and overtime and can be added to the employees wage package. Hoversten said if the City did not make a market offer and there could be undesirable staff turnover. Hoversten added that staff did a wage market analysis of surrounding communities in the west Lake Minnetonka area small communities and fringe suburban communities of similar size and infrastructure. Hoversten said staff then aggregated the data and found that the PW staff wages were 4-6% below the wage market. Hoversten said the union believed wages were 6-9% below the market. Hoversten said the personnel committee offered the following wage structure in response: • 2024: 6% increase and 3% cola, 2025: 3% increase and 3% cola 2026: Lead workers given a $1.00 increase % and 3% cola for all Hoversten said there was a health care settlement due to change in insurance costs based on City employee age. Hoversten said this will cost the average single employee around $40-60 a month so the contract provides for a $50 a month increase to the health care insurance subsidy. Hoversten said the City is also offering a $1 OK increase in life insurance per employee which will be a $5.00 per employee cost to the City. MOTION by Castellano, seconded by Larson, to approve 2024-2026 Public Works Bargaining Unit Agreement with the Teamsters Local 320. All voted in favor. Motion carried. 11. 2024 Final Budget and Levy Discussion/Approval Reisdorf presented the 2024 Final Budget and Levy with recommended levy increases. Reisdorf said the fee schedule supports City operations and services. Reisdorf said the resolution lists the proposed 2024 Fee changes. Reisdorf listed notable changes which include: • Fire Department billing and apparatus rates • Water meter hardware fees by supplier • Water meter testing fee • Utility rate increases for Water and Sewer Reisdorf said there is also language for the site visit fee per abatement at $75.00 which covers two visits from staff in that cost. MOTION by McEnaney, seconded by Larson, to approve the following resolution. All voted in favor. Motion carried. A. APPROVE RESOLUTION NO. 23-107: ADOPTING THE 2024 FEE SCHEDULE Mound City Council Minutes — December 12, 2023 Reisdorf said the item in front of Council started in September during the budget discussion process in order to diversify revenue and reduce reliance on property taxes. Reisdorf said there two franchise fee agreements with Xcel Energy and Centerpoint Energy which allow these companies exclusive use of City right of ways. Reisdorf said the agreements have a sunset date at the end of 2025. Reisdorf said staff recommend the removal of the sunset date which allows both parties to initiate a charge to the agreement. Reisdorf said the Council at the November 14 Council meeting directed staff to move forward with a final review of fees. Reisdorf said the final fees will feature a Tiered rate for commercial property franchise fees with a smaller residential fee increase. Reisdorf said Appendix A of the City Code will list the fee changes and removes the sunset clause. Reisdorf said staff will post the fee schedule in the Laker newspaper after approval. Reisdorf said there will be some time needed to get everything in place and staff expect nine months of increased franchise fee revenue in 2024 and then a full 12 months of revenue in 2025. MOTION by Castellano, seconded by McEnaney, to approve the following Ordinance. All voted in favor. Motion carried. B. Action on an Ordinance amending Franchise Fees for 2024 Reisdorf said the final general fund budget and levy numbers were based on discussions at previous Council meetings. Reisdorf said tonight's meeting serves as the official truth in taxation meeting, which was enacted in 1988, and gives the opportunity for residents to bring forward concerns to the Council and to learn more about the tax and budget process. Reisdorf said the levy will need to be approved by Hennepin County (HC) by the end of the month. Reisdorf said HC sent out preliminary tax statements to all property owners in the County. Reisdorf said Mound had a 9.9% increase in Taxable Market Value in 2023 and a net percent of valuation which increased 8.7%. Reisdorf said Local Government Aid (LGA) from the state will most likely be discontinued in to the future. Reisdorf said the City only received $74K in 2024 LGA which is down from $170K in 2023. Reisdorf added that $75K in revenue is 1 % of the City Levy. Reisdorf listed the areas of General Fund Revenue which include: • Property Taxes • License and permits • Intergovernmental • Charges for services • Fines and Forfeitures • Other sources Reisdorf listed the drivers of the Property Tax which include: • Operating Expenditures • Capital investments • Debt payments Reisdorf said the City Council set the preliminary budget at 14.86% in September in order for the City to plan ahead with future capital expenses. Reisdorf listed cost challenges facing the City: Mound City Council Minutes — December 12, 2023 • Projected wage increases • City Manager Severance • Administrative Services Director change to FT Deputy City Manager • Addition of PW Mechanic and PW Director • Payroll related changes — contracts increase • Capital Planning will include the preparation for the 2025 street maintenance projects Reisdorf said the City looked into fee diversification after the September preliminary budget and levy were set. Reisdorf said fee increases created through the diversification process provides an additional $300K in 2024 revenue projections which go forward each year. Reisdorf said this revenue allows the City to reduce the levy 3.2% through the increase in franchise fees and expected Cemetery sales. Reisdorf said rent revenue at the Centennial Building will see a reduction in 2024. Reisdorf said the final levy of 11.66% is recommend for approval within the final 2024 general fund budget. Holt said the levy increases from 2020 forward were kept low as the increases in those years were 3% in 2020 and 5% from 2012-2023. Holt said those Levies were conservative but inflation has increased over that time. Holt said he would like to emphasize the reduction of LGA over the past three years. Holt said LGA decreased and inflation and the cost of living have increased going into the 2024 budget process. Castellano said the City has made good change from the preliminary budget which allows the City to make up ground by paying for reserves and other items. MOTION by McEnaney, seconded by Pugh, to approve the following resolution. All voted in favor. Motion carried. C. APPROVE RESOLUTION NO. 23-108: APPROVING THE 2024 GENERAL FUND BUDGET IN THE AMOUT OF $7,113,579; SETTING THE FINAL LEVY AT $7,774,077; AND APPROVAL OF THE FINAL OVERALL BUDGET FOR 2024 Reisdorf recommend the $250K increase in the HRA levy. Reisdorf said this rate was set at the September 26th meeting. MOTION by Pugh, seconded by Larson, to approve the following resolution All voted in favor. Motion carried. D. APPROVE RESOLUTION NO. 23-109: APPROVING THE 2024 HRA LEVY IN THE AMOUT OF $250,000 FOR THE PURPOSEE OF DEFRAYING THE COST OF OPERATION PURSUANT TO THE PROVISIONS OF MSA 469 OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF, AND FOR, THE CITY OF MOUND FOR THE YEAR 2024 12. City Engineer Matt Bauman: 2024 Liftstation improvement Proiect Engineering Studv Matt Bauman said one of the items from the City Capital Improvement Plan is Liftstation improvement. Bauman said 25 Liftstations have been constructed and the 26t" project is underway. Bauman said the City is replacing one Liftstation a year and nearing completion of the Liftstation improvements over the next five years. Mound City Council Minutes — December 12, 2023 Bauman said this is the Sunset Liftstation at the intersection of Sunset and Sycamore Lane. Bauman said the proposed work is due to the Liftstation failing and the force main has failed twice recently. Hoversten said these are the rationale to this Liftstation has been moved up for completion Bauman said the Sunset Liftstation serves 17 homes. Bauman said the contractor bids will be evaluated in March with the contract being awarded in April and complete the project in the fall. McEnaney said after the cycle is done will the 30 be in another rotation for completion. Bauman said no that these are concrete improvements which are expected to last 50 to 100 years and only piping would be need to be replaced at the Liftstation. MOTION by Larson, seconded by McEnaney, to approve the following resolution. All voted in favor. Motion carried. APPROVE RESOLUTION NO. 23-110: RECEIVING REPORT AND AUTHORIZING PREPARATION OF PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS FOR THE 2024 LIFTSTATION IMPROVEMENTS PROJECT 13. Discussion and action to approve a Task Order with Bolton and Menk, Inc for temporary Public Works Director "Office Hours" Simmons said Bolton and Menk has acted as an Interim PW Director for Mound in the past with a focus on infrastructure. Hoversten said the Public Works hours completed by Bolton and Menk will be reviewed by the City Manager. MOTION by Castellano, seconded by McEnaney, to approve the temporary Public Works Director Task Order. All voted in favor. Motion carried. 14. Comments/Reports from Council Members: Council Member Pugh — Pugh said the Gillespie Center is experiencing budget issues and has terminated the contract with the entity conducting community services. Pugh said she would like to use the HRA meeting format to look at parking in the Harbor District. Hoversten said the HRA is the Council and can be used. Hoversten said an Economic Development entity offers financial incentives to development. Hoversten said the City can use the HRA, the City website and other documents to provide guides to small businesses in Mound. Council Member Larson — Larson said she attended former Mayor Bob Polston's memorial service and the family was appreciative of the Council involvement. Council Member McEnaney — McEnaney said the Westonka Community and Commerce board is appreciative of the attention of the Council. McEnaney said the Polar Plunge is looking for people to be part of the event on January 271h. McEnaney said the City of Mound is on Facebook now. Council Member Castellano — Nothing Mayor Holt — Holt said he handed out the "Shop Local" material out to local businesses and received feedback from businesses that they like the Council interest in businesses in Mound. Holt went through City achievements in 2023: • Appointed a new City Council Member • City Manager replacement • Assistant City Manager hire process • Artessa development Downtown sidewalks improvement New Fire Truck purchased • Lift Station improvement program 2024 Comprehensive Plan Health Check Mound City Council Minutes — December 12, 2023 • Long-term strategic financial plan in process • Nuisance code improvements • Collective bargaining agreement • $10.3Million in Water Treatment funds are pending • THC policy and ordinance created 15. Information/Miscellaneous A. Comments/reports from Council members/City Manager: • December 22 - City Hall closed for Christmas Eve • December 25 - City Hall closed for Christmas • December 29 - City Hall closed for New Year's Eve • January 1 - City Hall closed for New Year's Day • Polar Plunge scheduled for January 27, 2024 • 2024 Meeting Schedule is posted • Rare Bottle Event at HWS in February B. Reports: Harbor Wine and Spirits — November 2023 C. Minutes: D. Correspondence: Minnehaha Creek Watershed District Land & Water Partnership Metro Mosquito Control District 2023 Activities Executive Summary 16. Adjourn MOTION by Larson, seconded by Castellano, to adjourn at 10:37 p.m. All voted in favor. Motion carried. l / Attest"Kevin Kelly, Cle `M Mayor Jason R. Holt