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2024-09-24 CC Meeting MinutesMOUND CITY COUNCIL MINUTES September 24, 2024 The City Council of the City of Mound, Hennepin County, Minnesota, met in regular session on Tuesday, September 24, 2024 at 6:00 p.m. in the Council Chambers in the Centennial Building. Members present: Mayor Jason Holt, Council Members, Kathy McEnaney, and Kevin Castellano. Members absent: Council Members Sherrie Pugh and Paula Larson. Others present: City Manager Jesse Dickson, Deputy City Manager Maggie Reisdorf, City Attorney Scott Landsman, Finance Director Noah Iverson, Community Development Director Sarah Smith, Planning Consultant Rita Trapp, City Engineer Matt Bauman, Sergeant Ryan Spencer, Orono Police Department. Tim Flodin of 2350 Harbor Place. Tim Whenta of 4159 Heatherton Place (Minnetonka). Heather Maanum of 4159 Heatherton Place (Minnetonka) and Ben Brandt of 6233 Ladyslipper Circle. Carl Runck with Lake Minnetonka Flats, LLC. 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 6:00 p.m. 2. Pledge of Allegiance 3. Approve agenda Dickson asked the City Council to consider adding a resolution, per a recommendation from the Dock Commission, that would approve a 2024 waterside commons riprap work project at the end of Cardinal Lane. MOTION by Castellano, to approve the agenda with the updated resolution, seconded by McEnaney. All voted in favor. Motion carried. 4. Consent agenda MOTION by Castellano, seconded by McEnaney, to approve the consent agenda. Upon roll call vote, all voted in favor. Motion carried. A. Approve payment of claims in the amount of $449,436.90. B. Approve minutes: September 10, 2024 Regular Meeting September 10, 2024 Special Workshop Meeting C. Pay request in the amount of 2024 Crack Sealing Project Pay Request D. (Added) Resolution 24-76 Approving 2024 Waterside Commons Rip Rap Work 5. Comments and suggestions from citizens present on any item not on the agenda. None were offered. Orono Police Department Activity Report Orono police officer, Spencer, provided a report to the City Council for the dates between August 27, 2024 and September 23, 2024. He informed that there have been a total of 108 calls for service. He stated that the calls haven't included anything out of the ordinary. Spencer said that with school starting, activity is calming a little bit. He reported that during this period, there has been 12 DWIs, which is high. He informed though that the Orono Police Department is participating in a statewide program at the moment that has increased patrol all over the state enforcing traffic violations. He mentioned that there was a liquor violation and an underage drinking violation. Spencer provided an updated on the school resource officer efforts within the public community schools. He said that there has been current patrol on whether cars are stopping at bus stops when the bus arm is out. Spencer reported that there have been burglaries reported in the neighboring cities and that the department has been increasing their presence in neighborhoods. He recommended that people keep their security systems on and lock their homes and vehicles. Spencer said that patrolling at Surfside Beach and Centerview Park have been fine. He informed that he and others within the department will be doing SWAT training at Camp Ripley at the end of the week. 6. Planning Commission Recommendations Public Hearings — Review of major subdivision -preliminary plat and conditional use permit for shoreland planned unit development for Lake Minnetonka Flats which includes a 12-unit condominium project proposed for property located at 2400-2420 Commerce Boulevard. Applicants: Jim Gooley and Carl Runck of Lake Minnetonka Flats, LLC. Trapp introduced this item to the City Council. Trapp stated that the City Council had previously reviewed a concept plan for the project at an earlier meeting. She provided an overview of the project stating that Lake Minnetonka Flats, LLC is proposing 12 for -sale, condominium flats at 2400 — 2420 Commerce Boulevard. She said that the units would be spread across three, two-story buildings with four units in each building. Trapp added that the project proposed a boardwalk and shared HOA dock arrangement with an adjacent property. She stated that the dock arrangement is part of the discussion, but that review and approval for this will come from the MN DNR, MCWD, and LMCD. Trapp explained that the location of the developer is proposed on the eastern side of Commerce Boulevard, between Auditors Road and Bartlett Boulevard; next to Lost Lake. She said that applicant is proposing to combine the two lots: 2420 Commerce Boulevard and 2400 Commerce Boulevard. She explained that the combination would result in a new lot the size of 7.9 acres. Trapp stated that the existing conditions on the two properties include an accessory shed and vacant land. Trapp reviewed the requests of the applicant, including a request for a major subdivision that would include replatting the existing two properties into a single lot. Trapp said another request is for a Conditional Use Permit that would allow for a shoreland planned unit development (PUD), which is a requirement of the Mixed -Use — Corridor (MU-C) District. Trapp said that the City's Comprehensive Plan guides the area for Mixed Use and that the goal of the Mixed Use District is to support commercial, public, and residential uses, including townhomes and rowhomes. She added that the district requirements are meant to provide flexibility so that developers have options when considering infill development, especially with unique properties. Trapp explained that the density goals is 8 to 15 units per acre. Trapp stated that the proposed development is 9.2 units per acre which was calculated by using the established 1.3 acres of the site above the designated OHWL. Trapp stated that the zoning for the lots is Mixed -Use Corridor, within the shoreland overlay. She informed that new development within this area requires a Planned Unit Development (PUD). Trapp did a project overview. She showed renderings of a design that would include four living units per building. She said that the units would consist of either two or three bedrooms. She added that one of the primary focuses is on single level living as each unit is one level. Trapp reviewed the parking plan that would include private, below grade inside two -stall parking garages with a drive aisle for access. Trapp explained that preliminary plat portion of the project and how combining the two lots would create a 7.9 acre lot. She informed that it is anticipated that the applicant would pursue a Common Interest Community plat for the proposed condominiums as a way to sell each unit individually. She added that the applicant would be required to place drainage and utility easements along the property perimeter. Trapp reviewed changes that were made after the Planning Commission meeting. She noted that all changes are still in line with what the Planning Commission approved. She explained that based on LMCD, MCWD, and MN DNR comments, the applicant relocated the dock arrangement to be closer to the shoreline. She added that the dock now connects to the development in the center of the north building and that the accessory structure that was originally planned, has been removed. Trapp went into detail about the OWHL setbacks and shore impact zone requirements. She acknowledged that the site is a tight spot for the developer to work with. Trapp reviewed the proposed building dimensions and design standards which include a common area and one level units ranging from 760 square feet (2 bedroom) to 880 square feet (3 bedroom). Trapp highlighted the required architectural requirements for the project and that it generally meets the city's requirements. She noted the pedestrian entry protection being something that the developer and City have continued to review. She said the building will meet the 35 foot requirement. She stated that the building would meet the regulatory flood protection elevation. Trapp analyzed the project's site suitability. She explained the process of tiering density for shoreland projects. She stated that when there is a development along the lake, development within the first tier of land allows for 5 units, based on a 10,000 square foot lot size. Trapp mentioned that the 12 units is appropriate and that this method has been used in other similar city projects. She said that the open space of the site will be 68.2%, which meets requirements. Trapp reviewed the proposed access point onto the property from Commerce Boulevard. She went into more detail about the underground private parking and that there would be two spots per unit. She mentioned that there is no visitor parking spots on site, but that the developer has been working with the neighboring property, the Gillespie Center, to lease parking spots for visitors. Trapp said that a condition for approval would require that six spaces be available on site or through a recorded agreement. Trapp said this was one of the greatest concerns of the Planning Commission that there would be not visitor parking on site and that during the winter months, there would be no visitor parking on the streets overnight. Trapp went into detail about the proposed landscaping plan which includes nine deciduous trees and three coniferous trees, as well as native seeding and sod ground cover. She said that staff is still working with the developer on how some of the slope areas will be maintained. Trapp talked about the wetland areas within and around the site. She informed that there is one public water wetland that makes up 6.85 acres of the site. She explained that the wetland is catalogued by the MN DNR as a public water wetland that extends beyond the site. Trapp said that there are wetland buffer requirements that will need to be met per MCWD. Trapp informed that the project would have 45.3% impervious surface coverage and that the MCWD would be reviewing the proposed stormwater management plan and that the applicant would have to meet any listed requirements. Trapp informed that staff distributed the application information ahead of the meeting to other City staff, City consultants, agencies, utility companies for review and consideration. She said that the applicant has addressed technical comments from City staff, Hennepin County, and MCWD. Trapp said that staff sent out a public hearing notice of which a mailed notice was sent to all properties in the project area or within 350 feet on September 11, 2024. She said that notice was published in the Lake on September 14th, 2024. She said that no comments were received before the meeting. Trapp stated that the Planning Commission reviewed the proposal that their September 3, 2024 meeting. She said that the Planning Commission's comments included those related to overnight guest parking, snow removal, and mail and package delivery. Trapp said that the Planning Commission recommended approval to the City Council, but asked that these concerns be addressed at the City Council meeting. Trapp stated that the City Council is scheduled to hold a public hearing and take action on the request for the major subdivision — preliminary plat and the conditional use permit. She said the City Council is then being asked to discuss and make an action on how to move forward. Castellano asked about the shared entry space within each building. Trapp explained that the common space would include a main entrance, indoor mailboxes, stairs, and an elevator. She said that each unit has its own private deck space. She said that the market prefers single level living units. Holt opened the public hearing at 6:30 PM Hold closed the public hearing at 6:31 PM Castellano said the project looked great. He said that he was glad to see the developer choose that location. Holt said he loved the project and was glad the developer chose Mound. McEnaney said she loved the project and that it works well in this location. She stated she appreciated the efforts that have been made to solve the visitor parking concerns. She added that she was concerned with the leasing of spots with the nearby Gillespie Center as that location is about two blocks away. She expressed concern about no visitor parking on site. She explained that the original concept plan included two visitor parking spots and that she was disappointed to see those removed. She reiterated that she loves the project, but is concerned about no on site visitor parking and how it could create unintended consequences. Carl Runck, Co -Developer of the Lake Minnetonka Flats project, stated that the site is very unique and challenging in many ways. He informed that after the City Council meeting in which the concept plan was presented, it was determined that the sloping of the property was greater than initially thought. He said this resulted in the visitor parking spots being removed from the plan. He informed that the site design changed to make the slope less steep and therefore less dangerous for site navigation. Runck said that they have been working with the Gillespie Center on a parking agreement. He said they are also looking at nearby land that could be purchased as well. Runck informed that the design does meet City Code as far as parking requirements. Holt asked if overnight parking was common. Runck said he wasn't sure and that it likely depends on the time of year. He mentioned again the agreement they are working on with the Gillespie Center. Holt stated that each unit will have two underground parking spaces. He said that some of the unit owners may not even use both parking spots. He mentioned that his parent live in a condominium unit in Bloomington and that their unit only has one designated parking spot. Holt stated that there was designated visitor parking however. He said that he understood McEnaney's parking concerns. He said that he was ok with each unit having two parking spaces, there being on street parking, and the agreement with the Gillespie Center. Runck said that the development plan has been in progress for about a year and that he and the development team are happy with the outcome and that it is an exciting project. Castellano stated that he is not too worried about parking and that the current plan meets code. He said he is fine with an agreement with the Gillespie Center. McEnaney said that the purchasing of nearby property, if possible, would be a great solution. She said however that it is currently an unknown and a "what if' situation as to whether that will happen. MOTION by Castellano, seconded by Holt, to approve the following resolution. Motion carried 2-1 (McEnaney voted against). RESOLUTION NO. 24-77: RESOLUTION APPROVING MAJOR SUBDIVISION - PRELIMINARY PLAT OF "LAKE MINNETONKA FLATS" FO RPROPERTY LOCATED AT 2400-2420 COMMERCE BOULEVARD PLANNING CASE NO. 24-13. MOTION by Castellano, seconded by Holt, to approve the following resolution. Motion carried 2-1 (McEnaney voted against). RESOLUTION NO. 24-78: RESOLUTION APPROVING CONDITIONAL USE PERMIT FOR SHORELAND PLANNED UNIT DEVELOPMENT FOR LAKE MINNETONKA FLATS PROJECT FOR PROPERTY LOCATED AT 2400 and 2420 COMMERCE BOULEVARD PLANNING CASE NO. 24-13 7. Award Quote for 2024 Sewer Televising to Pipe Services Bauman introduced this item to the City Council. He informed that quotes were requested from five contractors for the 2024 sewer televising project. He stated that four quotes were received back. Bauman said that the lowest quote for the project came in at $26,841.80 from the contractor, Pipe Services. He informed that the company is out of Shakopee, Minnesota, and that they have completed numerous televising projects throughout the State of Minnesota. Bauman said that the work would be completed by December 2024. He recommended approving the attached resolution that would award Pipe Services the project in the amount of $26,841.80. MOTION by Castellano, seconded by McEnaney, to approve the following resolution. Motion carried 3- 0. RESOLUTION NO. 24-79: RESOLUTION AWARDING CONTRACT FOR 2024 SEWER TELEVISING PROJECT (PW-24-04). 8 Invoice -Cloud (I -Cloud) for Utility Billing Online Bill Pay Reisdorf introduced this item to the City Council. She said that she would be discussing an online platform called Invoice Cloud that would allow the City of Mound to offer utility customers additional services than what is currently offered. She explained that some of the additional services would include online access to personalized customer accounts, online payment options, expanded payment options (credit card/debit card/digital wallet payments), and opt -in messaging and reminders. Reisdorf provided a history of the City's current utility billing processes, including that the City current works with an outside company called OPUS21 who provided utility billing services. She explained that the City currently has paper and paperless billing. She said that the City currently only accepts ACH, check and cash payments. Reisdorf stated that I -Cloud currently works with 72 other municipalities in the State of Minnesota. She said she reached out to the City of Chaska, one nearby City that works with (- Cloud and they said they have had a good experience with the company. Reisdorf informed that working with I -Cloud and integrating their program into the current processes, that it would increase efficiencies and increase level of service for customers. Reisdorf went through the various cost/fee information, including a portal access fee of $1,800 that the City would pay for. She informed that I -Cloud would take on paperless bills, while Opus21 would maintain paper bills. Reisdorf informed that the goal is to try and get more customers using the paperless option because it costs less. Reisdorf explained that the couple of financial items were recently discussed with the Finance Committee. She informed that current ACH customers on the autopay method, are not charged a transaction fee. She said that with the transition over to I -Cloud, these customers would see a fee of $1.95 per transaction. Reisdorf said that the Finance Committee recommended having the City cover this fee as a way to keep the ACH autopay option free for these customers. Reisdorf said that the proposed agreement with I -Cloud would charge a credit card fee of 3.25% (minimum fee $2.95). She said that there would also be a $1 charge for over the phone payments. Reisdorf said that the Finance Committee is recommending that those fees get passed onto the customer. Reisdorf asked the City Council to review the Finance Committee recommendations and to consider approval of the agreement with I -Cloud that would span three years. She said that the agreement has been reviewed by the City Attorney and staff. McEnaney stated that some of the services that would be offered with I -Cloud are long overdue. She said that this update will go well with the new website update. She asked how it would be incorporated in with the website. Reisdorf stated that the I -Cloud page would be linked to the new website page. McEnaney said that she struggled with the City covering the $1.95 fee for ACH autopay payments. She said that absorbing that fee would be a lot. Holt said the discussion within the Finance Committee was whether to maintain it as a free option, since it was already free. He noted that he did struggle with absorbing the fee and that he was fine either way. McEnaney said that residents are still able to pay with check or cash if they don't want to pay the ACH fee. Motion by Castellano to approve the three-year contract with I -Cloud with a change in the agreement that would have the customers pay the $1.95 for ACH payments. McEnaney seconded. Motion passed 3-0. 9. Deputy City Manager Maggie Reisdorf requesting discussion and action on the preliminary budget and levy: A. Gillespie Center Funding Request Holt introduced this item to the City Council. He informed that at a previous City Council meeting, the Director of the Gillespie Center asked the City Council to consider a financial support contribution in 2025 in the amount of $75,000. He stated that in the past, the City of Mound had a 10 year contract in which the City contributed $60,000 per year. Holt explained that at a previous meeting, the City Council has the Director to come back with an executive summary that lists how the City of Mound could support the Gillespie Center in a lesser financial manner, and through other non -financial avenues; like marketing through the City's newsletter, social media, website, and more. He explained that the Director provided an executive summary that reduced the financial request to $12,000 per year along with other non -financial support recommendations. He said that the City is allowed per state statute to provide financial support to this type of organization. He stated that he could go either way as far as the financial request. Castellano explained that he sees the value in the Gillespie Center and what it has to offer for the community. He said that the Center is not utilized by all residents however. He said due to the City's current financial situation, he expressed concern about dedicated funds to the Center at this time. He said that he supported the City helping the Center in other non -financial ways. McEnaney said that she was torn because she sees the Gillespie Center as a wonderful commodity for the City of Mound. She stated that the City has taken a break for a couple of years supporting it financially. She asked the City Council if it would be possible to negotiate a contribution of $500/month for a total of $6,000/year. McEnaney said that the Center has just hired a new Director and they are trying really hard to rebrand and offer more to the community. She described the new Director as a go- getter. Castellano said that he could get on board with that contribution. McEnaney stated that she wished Councilmember Pugh was at the meeting as she serves as a liaison for the Center and could explain more about the rebranding efforts. She said that are doing hard work. She said she is ok with the $6,000. Castellano stated that he also wanted to make sure that the City would offer other non -financial support as well. McEnaney explained that she wants to show the City Council is backing their efforts. She said it is a great space and resource for the community. She said they are trying a lot of good new things. McEnaney said that the City can reassess each year how they want to show support. Holt agreed to a contribution of $500/month and to reassess again in 2025 for the year of 2026 Dickson informed that the Director of the Gillespie Center is requesting the City to help with marketing and other non -financial support. He said that there is an Age -Friendly Grant that becoming available soon that the City and the Center will look at partnering on. Landman stated that an agreement isn't needed and that the City Council can simply do a motion to allow the City Manager to draft a letter of agreement to the Gillespie Center stating what the contribution for 2025 will be, including other non -financial offerings as well. Holt moved to allow the City Manager to draft a letter of agreement to the Gillespie Center informing them of a financial contribution of $500/month for the year 2025, starting on January 1, 2025, and informing them of other nonfinancial contribution offerings. McEnaney seconded. Motion passed 3-0. B. Approve Resolution Approving the 2025 Preliminary General Fund Budget in the amount of $6, 914, 382; Setting the Preliminary Levy at $8, 208, 694, and Approving the Preliminary Overall Budget for 2025. Reisdorf introduced this item to the City Council. She informed that the City Council is being asked to approve the 2025 preliminary budget and levy this evening. Reisdorf explained the tentative budget timeline for the 2025 budget and levy approval process, including that the approved preliminary and budget information must be sent to Hennepin County by September 30, 2024. Reisdorf explained that the City Council recently completed a Long -Term Financial and Capital Plan in 2024. She stated that a Utility Rate Study was also completed. She went into detail about why these documents were completed and the important of having these documents in place. She informed that the preliminary budget and levy follow these plans. Reisdorf provided a review of the General Fund revenues and expenditures. She explained that a significant revenue change from the 2024 budget included the complete loss of the City's Local Government Aid (LGA). She noted a significant expenditure change from 2024 that included the City no longer paying for the County Assessor fee. Reisdorf said that this cost will now be covered completely by the County. Reisdorf did a review of the drivers of property taxes including operating expenditures, capital investments and reserves, and debt payments. Reisdorf explained that the preliminary tax levy for 2025 is scheduled to be a 6% increase from 2024. Reisdorf stated that the City Council is being asked to approve a resolution approving the 2025 Preliminary Budget and Levy. Holt said that the preliminary budget and levy of 6% sets the limit and that once approved, the final budget and levy cannot exceed that amount. Holt explained that the Finance Committee met a couple of times to review the budget and went through each line item. He said that he doesn't take the process lightly. He said that the City is going through a period where it needs to focus on getting some of its funds healthy again. McEnaney agreed that the City has some funds that need to get healthy again. Castellano mentioned that last Finance Committee meeting being over two and a half hours of review and discussion. He said that there were a lot of questions asked and answers provided as to why the budget is where it is at. He noted that it is important for the City to stick with its two plans that they just finished to get the funds healthy. MOTION by Castellano, seconded by McEnaney, to approve the following resolution. Motion carried 3-0. RESOLUTION NO. 24-80: RESOLUTION APPROVING THE 2025 PRELIMINARY GENERAL FUND BUDGET IN THE AMOUNT OF $6,914,382; AND SETTING THE PRELIMINARY LEVY AT $8,208,694. C. Motion to adjourn the City Council Meeting to the Mound Housing and Redevelopment Authority Meeting. MOTION by Castellano to adjourn the City Council meeting to the Mound Housing and Redevelopment Authority Meeting at 7:30 PM, seconded by McEnaney. Motion carried 3-0. D. Motion to reconvene the City Council Meeting. MOTION by Castellano to reconvene the City Council meeting at 7:40 PM, seconded by McEnaney. Motion carried 3-0. E. Approve Resolution Approving a Levy not to Exceed $250,000 for the Purpose of Defraying the Cost of Operation, Pursuant to the Provisions of MSA, of the Housing and Redevelopment Authority (HRA) and for the City of Mound for the Year 2025. MOTION by Castellano, seconded by McEnaney, to approve the following resolution. Motion carried 3-0. RESOLUTION NO. 24-81: RESOLUTION APPROVING A LEVY NOT TO EXCEED $250,000 FOR THE PURCHASE 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 2025. 10. 2396 Commerce Boulevard Update — Consider Closing Meeting Pursuant to Minn. Stat. 13D.05, subd. 3(b) Landman stated that the purpose of the closed session is to have an attorney -client protected discussion with the City Attorney under Minnesota Statutes, section 13D.05, subdivision 3(b) regarding active litigation for a hazardous building at 2396 Commerce Boulevard. He informed that the City Council requires the item to be closed to allow for a candid and open discussion about litigation issues including defense and possible areas of reconciliation. He stated that nothing is presently pending before the City Council regarding the decision. Landsman said that discussing the matter in open session would be detrimental because it would take place in front of potential litigants, and a closed session would benefit the public because any financial liability would be taxpayer -funded. MOTION by Castellano, seconded by McEnaney, to close the meeting at 7:42 PM. Motion carried 3-0. The meeting was reopened at 8:19 PM. Landsman explained that the City Council was coming out of a closed meeting regarding the property located at 2396 Commerce Boulevard that was previously declared a hazardous building. He informed that the City Council discussed a settlement agreement. He asked the City Council to consider an amendment to the agenda to include a resolution that would approve the settlement agreement. MOTION by Castellano, seconded by McEnaney, to amend the City Council agenda to add in a resolution approving the settlement agreement for the property located at 2396 Commerce Boulevard. Motion carried 3-0. MOTION by McEnaney, seconded by Castellano to approve the following resolution. Motion passed 3-0. RESOLUTION NO. 24-82: RESOLUTION APPROVING A SETTLEMENT AGREEMENT IN THE MATTER OF THE HAZARDOUS BUILDING LOCATED AT 2396 COMMERCE BOULEVARD MOUND, MINNESOTA, HENNEPIN COUNTY COURT FILE NO. 27-CV-23-4795. 9. Comments/Reports from Council Members: Council Member Pugh — NA. Council Member Larson — NA. Council Member McEnaney — None. Council Member Castellano — Mentioned that there were complaints from residents regarding the recent water tower maintenance. He was wondering if next time, the City could do more notification beforehand. McEnaney stated that no matter how much the City notifies residents, there will always be some that miss the notice. Holt informed that the digital notification did go out late. McEnaney said that not everyone receives the RAVE notices because they aren't signed up. She said that every newsletter says to sign up. Holt said that the City can try and get more people to sign up. Mayor Holt — Mentioned that Hennepin County set its preliminary budget at a 5.5% increase for 2025. He said that the Westonka Library project will have a delayed start and therefore the current library will stay open until early 2025. He said that the downtown sidewalk project looked great. 10. Information/Miscellaneous A. Comments/reports from Council members/City Manager: Dickson stated that the Fire Department is hosting an Open House on October 2, 2024 between 6 PM — 8 PM for Fire Prevention Month. B. Reports: C. Minutes: D. Correspondence: 11. Adjourn ACTION by Castellano, seconded by McEnaney, to adjourn at 8:49 PM. All voted in favor. Motion carried. Attest: evin Kelly, Clerk im Mayor Jason R. Holt