Loading...
2025-06-24 CC Meeting Workshop MinutesMOUND CITY COUNCIL SPECIAL WORKSHOP MINUTES June 24, 2025 The City Council of the City of Mound, Hennepin County, Minnesota, met in a special workshop meeting session on Tuesday, June 24, 2025, at 5:00 p.m. in the Council Chambers in the Centennial Building. Members present: Mayor Jason Holt, Council Members, Michelle Herrick, Kathy McEnaney and Kevin Castellano. Members absent: Sherrie Pugh. Others present: City Manager Jesse Dickson, Deputy City Manager Maggie Reisdorf, Finance Director Noah Iverson, and City Attorney Scott Landsman. 2026 Franchise Fees Increase Proposal Mayor Holt introduced this item to the City Council. He stated that the Finance Committee met recently to continue to talk about the building of a Water Treatment Plant and how and when to finance its construction. He noted that the city completed the Long Term Financial and Capital Plan in 2024, but that the study didn't incorporate the construction of the plant. Holt stated that a discussion item with the Finance Committee has been increasing Franchise Fees in 2026. Reisdorf informed that as part of the Long -Term Financial Plan (LTFP), the City of Mound increased Franchise Fees for 2025. She explained that prior to the change, every property, no matter what the class of property, was charged the same rate of $2.75. She noted that the change took property class/type into consideration and the rates were increased and changed according to what research in the metro region was charging. Reisdorf explained that franchise fee revenue is currently being used to stabilize property taxes. She noted that the ongoing discussion would be whether the City Council is interested in using the revenue to stabilize utility rates as well. Reisdorf and Iverson went into detail about the LTFP and the upcoming $71 million in capital improvements needs through the year 2033 (excluding the water treatment plant). There was discussion on how those projects are projected to be financed with reserves and debt. Iverson went into detail about historical capital projects and how those projects were primarily funded through the issuance of debt. Reisdorf talked about how the Finance Committee and staff have continued to discuss funding the water treatment plant with or without external federal or state funding. She noted that the city did not receive state funding in 2025, but that there may still be opportunities to receive state or federal funding. Holt noted that Franchise Fees are another revenue stream to help support capital project funding. He stressed that he understood that it is still hitting residents financially in some way, but that Franchise Fees also allow the city to collect from properties that don't currently pay property taxes, but still use city services and resources. He talked about the current funding applications that the city has applied for at the federal and state levels. He noted that the city has to wait until September to see if it would get any federal funding. Holt said that he has spent the last year lobbying at the state level really hard and that the city wasn't able to secure any funds in 2025. He said that he knows residents want the water issue fixed and that the city has been doing what it can to reduce the impact of how the construction of the plant would impact the utility rates. Reisdorf stated that a recommendation that staff has presented to the Finance Committee would be to increase Franchise Fees again in 2026, and then take a break for two or three years. She explained that the additional revenue from the recommended rate changes would be an approximate increase of $247,000. She stated that this increase could further help with capital project funding and/or to help get the current utility deficits better faster. Holt said that he is a fiscally conservative person and doesn't want to increase taxes, but understands that the city needs to pay its bills. He said that the city needs to get out of the hole and that this city has to make hard decisions to get the city where it needs to be. There was a discussion on whether the city could put the construction of the water treatment plant on the ballot for residents to vote on. Landman explained why this could not be placed on a ballot to be voted on and that it is essentially the responsibility of the City Council as elected officials to decide on. Holt noted that the City Council would be hosting an Open House on July 22, 2025 to provide an update to the community on the status of the water treatment plant plans, the funding, and additional information. There was discussion on whether the city should wait until September to see if the city receives additional federal funding for the project. Holt said that the City Council could make a decision now, or it could continue to lobby for external funding. There was continued discussion on the staff proposed Franchise Fee increase. Holt noted that this City Council has to make hard decisions because previous City Councils kept constantly cutting funds, but didn't cover their costs. He stressed the importance of fixing the budget and that the city can't continue on this path. McEnaney stated that she understood what the city needs to do. She explained that it has been hard to find other funding sources to get the city to where it needs to be. She said that she doesn't want to increase Franchise Fees, but that the city may have to do so to get fiscally healthy. Herrick agreed. The City Council agreed to have staff bring a Franchise Fee increase proposal to a regular City Council meeting for further review and discussion. Adjourn The meeting was adjourned at 5:58 pm. Mayor Jason R. Holt Attest: Kevin Kelly, Clerk MOUND CITY COUNCIL MINUTES July 8, 2025 The City Council of the City of Mound, Hennepin County, Minnesota, met in regular session on Tuesday, July 8, 2025, at 6:00 p.m. in the Council Chambers in the Centennial Building. Members present: Mayor Jason Holt, Council Members Sherrie Pugh, Kathy McEnaney, Kevin Castellano, and Michelle Herrick. Members absent: None. Others present: City Manager Jesse Dickson, Deputy City Manager Maggie Reisdorf, Public Works Director Ryan Prich, City Attorney Scott Landsman, City Engineer Matt Bauman, Orono Police Officer Ryan Spencer, Molly Williams (5075 Windsor Road, Mound), Dallas Hansen (5075 Windsor Road, Mound), Helen Canning (5926 Beachwood, Mound), and Tyler Pieper (5504 Church Road, Mound). 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 Alleqiance 3. Approve agenda MOTION by McEnaney, seconded by Castellano, to approve the agenda. All voted in favor. Motion carried. 4. Consent agenda MOTION by McEnaney, seconded by Herrick, to approve the consent agenda. Upon roll call vote, all voted in favor. Motion carried. A. Approve payment of claims in the amount of $376,746.64. B. Approve minutes: June 24, 2025 City Council Meeting Workshop June 24, 2025 City Council Meeting Regular C. Approve resolution 25-61 approving request from Molly Williams for substantially similar use determination for property located at 2378 Wilshire Blvd (Planning Case No. 25-06). D. Pay Request No. 2 in the amount of $319,853.60 to Concrete Idea for the CSAH 15 Sidewalk Improvements Project, PW-25-08 & PW-25-09. E. Miscellaneous Pay Request in the amount of $29,330.00 to Klein Underground for the 2024 Manhole Rehabilitation Project, City Project PW-24-05. 5. Comments and suggestions from citizens present on any item not on the agenda. Tyler Pieper, 5504 Church Road, Mound, stated that he is providing an update on the Hennepin County Natural Resources Good Steward Grant that the City Council approved him applying for at the beginning of the year. He noted that he recently received confirmation from Hennepin County that he received the grant in the amount of $5,000. He noted that in addition to the grant funds, the City Council committed to a City matching amount of $1,750. Pieper stated that he had met with one of the neighbors of the park and talked with them about the project. He noted that he will be talking with other neighbors as well. Pieper said that he would inform the Parks and Open Spaces Commission (POSC) at their meeting on Thursday. Pieper said that he is excited to get plants in the ground and thanked the City Council. 6. Orono Police Department with June 2025 Activity Report Sergeant Spencer said that the last couple of weeks have been busy due to summertime activities taking place throughout the City. He noted that there have been increased calls for service, especially over the holiday weekend. Spencer referenced a storm that came through the area a couple of weeks before that included two tornadoes. He explained that the department prepared for the storm and noted that the City was fortunate to only get minor damage. Spencer said that the Spirit of the Lakes Festival is next week and the department's planning for the event is going well. He noted that the department had a new officer start on July 7, 2025 and he is going well. Spencer said that the department's canine Onyx will be sworn in on July 14, 2025 at the Orono City Council meeting, where he will receive his badge. Spencer said that they have an intern starting with the department who is interested in learning about law enforcement. He finished by saying that the department has a new reserve who may move into the vacant cadet position. 7. Receive Final Plans and Order Advertisement for Bids: Lost Lake Commons Phase II Bauman introduced this item to the City Council. He noted that at the City Council meeting two weeks ago, the City Council provided final input on what it wanted to see in the final plans for Lost Lake Commons Phase ll. He said that the plans presented this evening reflect those comments. Bauman reviewed a memo that he wrote for the City Council explaining what this phase of the project will include what will be bid as alternates, and what items were removed and/or delayed for the future phases. Bauman said that the preliminary budget for the total project cost is $884,000 and is accounted for in the long-term financial plan. He explained that it is to be funded through the issuance of a bond. He noted that the engineer's estimate for the base bid is $807,408 and the bid with alternates is $878,408. He noted that the projected schedule would be to bid out the project and award it in August with construction occurring in the fall. Bauman said that staff is recommending approval from the City Council to bid the project. Holt asked if the trees on the right side of the park, where the proposed future art walk would go, should be removed at this time since there are unknowns still with regard to the art. There was City Council discussion on what to do with the trees and if all or some should be removed until decisions could be made on the art walk space. Pugh expressed concern over the City Council's discussion on the park at their last meeting. She said that she felt the City Council was making decisions based on personal experience and not on expert advisement. She referenced the discussion on what trees and shrubs should be placed in the park and noted that the City Council needs to trust the experts, like an arborist, to make those decisions. Pugh also referenced how the City Council was against natural plantings because they would be too much work for staff to maintain. She explained that the neighboring cities of Victoria and Delano have a policy that promotes the planting of natives in their projects. Pugh said too that the City Council talked about including Adirondack chairs at the park and that she received an email from a concerned resident explaining that these chairs are not age friendly. Pugh said that as a City Council, they need to set standards and guidelines. She expressed interest in incorporating solar lights into the project to said on cost. Pugh said that she has been to the park three times this week to go for a walk. She said that the City Council missed some important features at the current park. She referenced some historical plaques that she is not sure where they came from. She said that the City Council needs to be more mindful of what it is doing. Herrick acknowledged that she is not an expert in trees. She said as a taxpayer the City Council needs to think long and hard about the money that is being spent on this park. She said she didn't think evergreens would survive in park due to the high winds in that area. Bauman noted that Bolton and Menk has landscape architects that helped design the park and tree locations. He noted that they are not arborists, but that they understand what works well. He said that native plants are included in the project, but that the type of native plants that were chosen are those that are lower maintenance and do not spread like other native plants. Bauman explained that there were several meetings as well between the city engineer, public works, etc. on trees and plantings. There was discussion amongst the City Council on accessibility throughout the park and making sure accessibility is considered. There was discussion amongst the City Council about the current state of the wooden gazebo by the lake and if that needed to be replaced at this time. The City Council decided to not include it as part of this phase at this time. Prich stated that it would be incorporated into the Long -Term Capital Plan for replacement in the near future. McEnaney moved to pause the discussion on Item 7 and move to Item 8 for discussion, as the two items are related. Castellano seconded. Motion passed 5-0. 8. Lost Lake Commons Art Walk Phase 2.5 McEnaney introduced this item to the City Council. She presented a concept design for the art walk area of the Lost Lake Commons Park. She talked about the history of Tonka Toys in the community and how it would be nice to pay tribute to that history. McEnaney explained that Tonka Toys played a huge part in the city's historical identity and economy. She said the city could work with the historical society on helping put together a more defined concept. She said too that the City could work with an artist to create Tonka Toy related artwork. McEnaney said that she has also been in contact with the company the owns Hasbro, who owns Tonka Toys. She said that she is still waiting to hear back from the company. She said that she just wanted to present a concept for the City Council to think about and consider. Castellano said that his mom worked at Tonka Toys. He said that if the City Council does this, that they just need to make sure they do it right. He said more discussion is needed on what they would want to include, and it needs to be well thought out. He said that it is a great idea though. He recommended that the City Council move forward with completing Phase II and then continue discussing this for a later date. McEnaney agreed. She noted that she wants the City Council to discuss it because she believes if they didn't, it could be a missed opportunity. She said a lot of residents don't know the history of the City of Mound and Tonka Toys. Herrick said that she likes the idea and concept. There was discussion amongst the City Council to remove the trees in the art walk area for Phase II since they may continue to discuss the Tonka Toy art concept for that area in the future. Item 7: Continued Castellano moved to approve Resolution No. 25-62 Receiving Plans and Specifications and Ordering Advertisement For Bids For the Lost Lake Commons Improvements Project: Phase 2 with the removal of the trees within the art walk area. McEnaney seconded. All voted in favor. Motion passed 5-0. 9. Closed Session to Discuss Pending Litigation Pursuant to Minn. Stat. 13D.05, subd. 3(b) Landman stated the following about going into a closed session saying that the City Council will be moving to a closed session pursuant to Minn. Stat. §13D.05, subd. 3, under attorney -client privilege. The property located at 1737 Wildhurst is currently subject to City code enforcement for non-compliance with the building code. The City Council requires the item to be closed for more than routine legal advice to allow for a candid and open discussion about the decision to move forward with litigation and the related issues including claims, counterclaims, and possible areas of reconciliation. Nothing is presently pending before the City Council regarding the decision and discussing the matter in an 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. McEnaney moved to go into closed session at 7:03 PM. Herrick seconded. All voted in favor. Motion passed. The City Council meeting reopened at 7:42 PM. 10. Comments/Reports from Council members Council Member Pugh — Mentioned that she attended the League of Minnesota Cities Annual Conference in Duluth. She said that she learned a lot. She talked that she learned that a new law in Minnesota was passed this year that expands on the ability for city board meetings to be conducted through video conferencing. Pugh said that she connected with vendors, other City Councilmembers, and staff from other cities. She recommended that the City Council consider going next year. She said that she would be visiting the three rain gardens tomorrow that are being managed by Harrisons Bay. Council Member McEnaney — She stated that the flags on the electrical poles along the highway in town look great. She thanked public works for getting those up. Council Member Castellano — None. Council Member Herrick — Said that she has been visiting a lot of the city's parks. Noted that there is a police commission meeting next week. Mayor Holt — Stated that the Spirit of the Lakes Festival is next week. Talked about the July 22, 2025 City Council meeting where the City Council will be providing an update to the community on the Water Treatment Plant project. He invited residents to attend. 11. Information/Miscellaneous A. Comments/reports from City Manager: Dickson stated that the library has a temporary site up and running at the City Hall during throughout their construction project. B. Reports: Finance — May 2025 Liquor Store — June 2025 C. Minutes: June 3, 2025 — Planning Commission D. Correspondence: 12. Adjourn MOTION by McEnaney, seconded by Herrick, to adjourn at 7:49 p.m. All voted in favor. Motion carried. Mayor Jason R. Holt Attest: kevin Kelly, CI rk