2024-03-26 CC Meeting MinutesMOUND CITY COUNCIL MINUTES
March 26, 2024
The City Council of the City of Mound, Hennepin County, Minnesota, met in regular session on
Tuesday, March 26, 2024 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 Jesse Dickson, City Attorney Scott Landsman, City Clerk Kevin
Kelly, Community Development Director Sarah Smith, City Engineer Matt Bauman,
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. Pledge of Allegiance
3. Approve agenda
MOTION by Pugh, seconded by Castellano, to approve the agenda. All voted in favor. Motion
carried.
4. Consent agenda
MOTION by Castellano, seconded by Pugh, to approve the consent agenda. Upon roll call
vote, all voted in favor. Motion carried.
A. Approve payment of claims in the amount of $296,449.13
B. Approve minutes: March 12, 2024 Regular City Council Meeting
March 12, 2024 Workshop Meeting
C. RESOLUTION NO. 24-25: APPROVING PUBLIC GATHERING PERMIT FOR 2024
MOUND FARMERS MARKET & MORE SEASON FROM SATURDAY, MAY 25, 2024
THROUGH SATURDAY, OCTOBER 12, 2024 FROM 7:00 A.M. TO 12:30 P.M. WITH
REDUCED FEE DUE TO COMMUNITY BENEFIT
D. Approve 2024 Planning Commission Work Plan and Staff Project List
E. Pay Request No. 3, in the amount of $15,646.50, to Minger Construction for 2023
Lift Station Improvements; City Project PW-23-03
5. Comments and suggestions from citizens present on any item not on the agenda.
No one came forward.
Mound City Council Minutes
6. Mound State of the Water
Simmons presented the state of the city water supply. Simmons said this report provides the activity
which is being done behind the scenes to provide safe and affordable drinking water to residents.
Simmons said the City considered options and discussed how to proceed after the testing that
discovered manganese in the City drinking water. Simmons said the plan to respond to the manganese
is to construct a water treatment plant which has a cost of $36 Million.
Simmons provided a chart which listed maximum contamination limits of manganese. Simmons said
the limits are a health -based determination to use as a guide but does not have the hard science study
behind the concern. Simmons said the City used Well #3 and #8 samples across the community and
found the City is still in the high range of manganese content in the water. Simmons said the
notification that residents received when manganese was first tested should still be heeded.
Simmons said the City has been working on funding the water treatment plant for the past couple of
years.
Simmons said those activities were:
• State of Minnesota Direct Appropriation to Federal and State sources
• Drinking Water Revolving Fund (IUP/PPL) which provides funds annually
Simmons said the City has received:
$10 Million in direct State appropriation funds
$1 Million from Federal funds
Simmons added there is a $24.5 Million gap in funding to complete the water treatment plant.
Simmons said the (IUP) Intended Use Plan and the (PPL) Project Priority List are administered by the
Public Utilities Facilities Authority (PFA) which ranks the needs of a City utility. Simmons said the City's
ranking has improved in 2024 as Manganese content has been factored in and continues the ranking
trend upward. Simmons said a number of cities have similar manganese problems. Simmons said
there are almost 1000 entries ranked for funding. Simmons said staff are continuing to look for grants
or a matching fund opportunities. Simmons said the PFA could also assist with the refinancing of
existing debt which could be an option through bond restructuring.
Simmons presented a slide titled "Implementing the Solution" which listed:
• Look to unlock existing funding and use the $10.3 Million allocated to get plans and specs ready
to go
• Continue to submit for direct funds
• Submit project to the IUP/PPL at the PFA
• Continue to push for manganese to be listed as a containment with the Dept. of Health and the
MN PCA. Simmons said the manganese rules were caused by those two agencies and would
bring a sense of urgency regarding funding from those two sources.
• Continued providing guidance to residents on manganese
• Maintain water softener to remove manganese
• Encourage water testing in the home
• Bottled water is still recommended for infants
• Manganese is poorly absorbed through the skin so bathing, showering and contact with water is
less of a concern than consuming water
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Holt said the manganese issue was brought to the City on January of 2021. Holt said he is working
with elected state officers Senator Morrison and Representative Myers on securing more funding.
Holt added the Council wrote a letter which was sent to Governor Walz regarding the need of funding to
treat the City water supply. Holt said the City is also regularly communicating about the state of the
water quality and what work is being done.
Holt said the City received $10.3 Million. Holt said a bill to unlock the funds needs to be passed out of
a MN House committee with the corrected verbiage and then goes to the MN Senate for approval.
Holt said the $10.3 Million will get the pre -design, design and planning started. Simmons said
engineering can begin prepping the water treatment plant site and water main work could begin.
Holt said the grant of nearly $1 Million has come through from the federal government. Holt said he
thanked the two US Senators from Minnesota, Klobuchar and Smith, and U.S. Congressman Phillips.
Holt listed activities which have taken place and problems the City is facing:
• City Day at the Capital to advocate for the City's water treatment needs
• The manganese problem is too large due to the $4 Million debt the City Water Fund already
holds
• The City cut utility rates in the past and the City would have to raise water utility rates or get
outside funding
• The City will keep advocating with outside agencies for funding
• Updates to the City website on -going
• Urged residents to check their home water supply.
Simmons said it would take three years to complete the project when funding is approved.
7. Motorized Watercraft Rentals Business License Ordinance
Dickson said this proposed ordinance was created in response to the February 28, 2024 City Council
workshop and the discussion on how the City can license motorized watercraft businesses in the City.
Landsman said the plan is to bring back a completed ordinance at the next meeting. Landsman said
this is a draft ordinance and the ordinance is focused on motorized watercraft businesses which rent
watercraft to other people. Landsman said this is a business license to operate a business in the City.
Landsman said these businesses are using City property by utilizing roadways and the park.
Landsman said these businesses will have to comply with the law and hold insurance with the City
listed as being additionally insured. Landsman said each individual watercraft must be licensed and
meet all registration requirements. Landsman said the business must list the vehicles they are using in
regards to the business and keep the City updated on any changes.
Landsman said the license would be non -transferable. Landsman added the business must register
with the City Clerk and needs to make sure their license be displayed. Landsman listed proposed
information provided on the application:
• Name of business
• Business Address and contact info
• List of motorized watercraft
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Landsman said the license itself is an administrative act and the business has an ability to appeal to
Council on any decisions made by staff. Landsman said the license would be annually renewed and
include the following:
• Application Fee
• Procedures for suspension and revocation
• Increased Community Service Officer (CSO) presence at Surfside Park
• Misdemeanor with each occurrence of license or code violation
Castellano asked about what fees other cities have applied to this type of business. Landsman said
there really isn't other cities licensing this activity. Landsman said the idea is to not be too burdensome
and the fees can be revisited after the license program is implemented.
Castellano said what would be the turnaround time. Landsman said the need would be to implement
by June. Landsman said there will be a learning curve with the implementation program and there will
be opportunities to make changes and improvements to the program. Landsman said the license
program should include City signage and provisions of the meeting of the code.
Landsman said this will be a license to allow a business to operate in the City and use the city
infrastructure. Landsman said these businesses are using the City roads just like transient merchants
and tree trimmers.
McEnaney said it would be good to have the license ready for Memorial Day and Landsman said it
should be ready in April or May.
McEnaney said the license is a win for Mound as there are four or five businesses who have not been
accountable to the City and the businesses have been using the city property. McEnaney said can the
City add a snowmobile rental business to the license ordinance. Landsman said for right now the
biggest issue is watercraft licensing and is an immediate need.
McEnaney said the businesses using Surfside Park are taking advantage of the City to stage their
business and is their business application. Landsman said the ordinance is written where the
businesses need to comply with the City code and the OPD thinks the ordinances in place is sufficient.
Castellano said there is a portion of the City Code which doesn't allow a commercial business to
operate on public property. Landsman said these provisions will bring uniformity, responsibility,
insurance requirements and a list of appropriate vehicles. Landsman said this is a licensing of
business. Landsman said should there be an expansion beyond the watercraft rental licenses.
Castellano said they could include everything else that is rented. Landsman said snowmobiles, 4-
wheelers, scooters could be expanded too if the Council would like to go in that direction.
Landsman said the City could work on the immediate need and see if winter use of Surfside becomes a
problem and the Council can make that decision.
Landsman said the business should have the license available at the public property along with their list
of vehicles which are available for rental.
Landsman asked what the Council wants to set as the business license fee. Dickson said the Tree
Trimmer license is $200.00 a year. McEnaney said she thinks a $200.00 fee a year is too small.
McEnaney said Bay Rentals provides tax revenue to Mound. Landsman said Bay Rentals will also
Mound City Council Minutes
have to pay the license fee as well as operators without a store front in the City. McEnaney said the
licensing program will need to be enforced.
Castellano said the Council wants to be commerce friendly and to not drive operators away. Castellano
said he would like to see a fee comparison. Landsman said there will be no background check but the
license fee should be based on something tangible.
Landsman said the purpose of the license is for the business to follow the law and to have insurance.
McEnaney said the rental business are using the Park as a place of business.
Holt said the watercraft rental license fee should cover the cost to the City.
Holt said there should be signage at the launch that the rental businesses know what is in the
ordinance. Dickson said the City can place the signage so there is it is there in writing and the rules
being posted was requested by the OPD so there is no excuse for not complying with the licensing
ordinance. Castellano said he would like to see a mockup of the signage at Surfside.
Larson said parking is a problem at Surfside and the ordinance doesn't prohibit these business parking
there. McEnaney said it is written in the memo and staff have spoken to the Orono Police Department
to step up enforcement at Surfside. Landsman said he has been informed by staff that there is code is
in place to respond to businesses using parking lot at Surfside.
Larson asked which staff will run the licensing program. Dickson said it will be a team effort to
implement the licensing process.
8. Statutory City Plan A/Plan B Memorandum & Discussion
Landsman said his memo outlines the difference between a Plan A or a Plan B city with the City of
Mound being a Plan B City currently.
Landsman said the Council is the policy maker and supervises one employee the City Manager in a
Plan B City. Landsman said in a Plan A city the Council supervises all City employees and is
responsible for the administrative activity of the City.
Landsman said to change the plan of the City would need a vote of approval from residents and if voted
in would include a lengthy process of reviewing the City Code, contracts and other documents to
transfer the changes.
Landsman asked for questions form the Council. McEnaney said the City was having issues when and
to look at options and as a Council to have more control and have solved those issues. McEnaney said
she thought the Council could push the Council to collect fines and fees. Landsman said Statutory
Cities are governed by rules set by the legislature and in either City Plan the Council would be able to
set fees and have City Code policy making responsibilities. Landsman said the Charter City process
can include changes to City structure and is a very expensive and lengthy process.
McEnaney said she would like to hear from Dickson on how he sees the differences between working
under both City Plans. Dickson said he does find there is a difference particularly in the hiring of staff
specifically referencing the current Public Works Director position. Dickson said Plan B gives staff the
buffer and freedom. Dickson said he would advocate for Plan B as is allows the Council to focus on
City policy. Dickson said the City Manager works for the Council and code enforcement should be
stepped up and this would be the City Manager's responsibility. Dickson said Plan B allows staff to be
more involved in City business and when his worked for a Plan A City there were times when he wasn't
Mound City Council Minutes
involved in the activity of the Council and Mayor. Dickson said Plan B will allow the City to think high
level.
Larson said she wanted to switch to Plan A and it was her impression was the reason that Mound is a
complaint -based enforcement City was because Mound was under Plan B. Larson said if there is no
difference in code enforcement than she would like to stay with Plan B. Larson said she doesn't want
to micro -manage the staff and she doesn't know the day-to-day activities of the staff. Larson said her
opinion was to stay where we are, which is Plan B. Landsman said the difference in the two Plans is
more the management style of the City.
McEnaney said she doesn't want to be involved in managing staff who she doesn't see on even a
weekly basis. Pugh, Castellano and Holt said they would like to stay with Plan B.
9. "Missing Middle Housing" Bills Opposition Resolution
Dickson said he provided the Council the information provided by the League of Minnesota Cities with
the LMC view of the proposed legislation.
McEnaney said the bill strips cities of local rule. McEnaney said many cities are contemplating passing
resolutions in opposition to the Missing Middle Housing bill. McEnaney said this is government
overreach. Landsman said the intent of the bill is to promote multi -family housing in all areas in the
State. Landsman said this version of a housing bill would be an administrative act and wouldn't go
through planning or the Council. Landsman said there has been modification of the bill which was
passed out of committee.
Landsman listed items in the bill which were changes from the original bill:
• Multi -family cannot be built on a single-family zoned lot
• Adequacy of public infrastructure must be present
• Off-street parking requirements
• No Park Dedication Fees
Landsman said the original intent was to build anywhere without public input and to not have Council
oversight. Landsman said the resolution speaks to the work the City did on the Comprehensive Plan
Amendment and has been Metropolitan Council approved. Landsman said the resolution advocates for
a City position in opposition of the missing middle housing bill. Landsman said the League is lobbying
against the bill and seem to be having an impact.
Castellano said State Representative Andrew Myers sent an email explaining why he voted no on the
bill.
Holt said the congressional hearing room was packed when the bill was introduced and the whole place
booed the promotion of the bill. Pugh said the bill was going to exempt cities under 10,000 in
population. Holt said the resolution states the work the City has done on local control.
MOTION by McEnaney, seconded by Castellano, to approve the following resolution. Larson,
McEnaney, Castellano and Holt voted in favor. Pugh abstained. Motion carried.
RESOLUTION NO. 24-26: OPPOSING PROPOSED LEGISLATION — MISSING MIDDLE HOUSING
BILL (HF4009 AND SF3694) AND SIMILAR BILLS
10. Comments/ Reports from Council member
Mound City Council Minutes
Council Member Pugh — Nothing
Council Member Larson — Police Committee Meeting Attendance
Council Member McEnaney — Nothing
Council Member Castellano — Nothing.
• Mayor Holt — Holt said he has requested the Embedded Social Worker to present to the Council.
Dickson said there is a meeting with Chief Pederson in April about on -going coverage and duty
crews.
Holt added:
• Thefts in the area around the Dog Park in Orono.
• OPD is fully staffed
• Coffee with a Cop with residents
Holt said there was a joint meeting with the WCC. Dickson said the WCC is gearing up for their next
event. Holt said the WCC doesn't feel they are being heard from by the City. Holt said the City
appointed a liaison to the WCC for the first time to increase communication. Pugh and Holt said the
Parks Commission can collaborate with the WCC.
13. Information/Miscellaneous
A. Comments/reports from staff/City Manager: Dickson said he had a conversation on
address redaction in the OPD report which will still redact sensitive subjects but include the
street name.
Dickson said that that city was storm ready for Sunday and PW crews ready for the surprise
storm today.
B. Reports: Engineers — YTD 2023
C. Minutes: January 2, 2024 — Planning Commission
February 20, 2024 — Planning Commission special workshop
D. Correspondence:
14. Adjourn
MOTION by Castellano, seconded by Pugh, to adjourn at 8:37 p.m. All voted in favor. Motion
carried.
Mayor Jason R. Holt
Attest: evin Kelly, erk