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2009-09-22MOUND CITY COUNCIL MINUTES SEPTEMBER 22, 2009 The City Council of the City of Mound, Hennepin County, Minnesota, met in regular session on Tuesday, September 22, 2009 at 7:30 p.m. in the council chambers of city hall. Members present: Mayor Mark Hanus; Councilmembers Heidi Gesch and Greg Skinner Members absent: Councilmembers David Osmek and Ray Salazar Others present: City Manager Kandis Hanson, City Clerk Bonnie Ritter, Community Development Director Sarah Smith, Finance Director Catherine Pausche, Public Works Director Carlton Moore, City Engineer Dan Faulkner, Bruce Suhns, Adie Meuwissen, Carol Kelly, Walter Neske, Miles White, Thomas Hart, Roy & Joyce Dworakoski, Gerald Babb, Gene Garvais, Paige Sairin, James Swietlik, Mick & Dawn Murphy, Chris Miller, Jack Gallagher, Mike Skinner, Todd Schell, Daniel Herbon, Roger & Janice Hill, James Holmbeck, Lynn Panning, Tina Zylman, Katie Pemberton, Leslie Kochner, Maria Lunning, Jeana Van Dyne, Maggie Ling, Greg Severson, Shelly Young, Katie Catton, Kris Sieckert, David Rice, Ezra Bisson, Kerry Latham, Mark Hagen, Holly Gabby, Amanda Schwarze. 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 Hanus called the meeting to order at 7:30 p.m. 2. Pledge of Allegiance 3. Approve agenda Kandis requested the removal of Item 8 and the addition of Item 11.1, Snowmobile Trail Crossing. MOTION by Gesch, seconded by Skinner to approve the agenda as amended. All voted in favor. Motion carried. 4. Consent agenda Skinner requested the removal of Item 413 from the consent agenda. MOTION by Gesch, seconded by Hanus to approve the consent agenda as amended. All voted in favor. Motion carried. A. Approve minutes of September 8, 2009 regular meeting B. (removed) C. Approve Pay Request No. 5 and Final by Geislinger & Sons, Inc. in the amount of $7,588.90, for work on the 2008 Lift Station Improvement Project, (PW- 08 -04) D. Approve Temporary On -Sale 3.2 Malt Liquor Permit application by Mound Fire Relief Association for September 26, 2009 Annual Firefighter Recognition Dinner Mound City Council Minutes — September 22, 2009 E. RESOLUTION NO. 09 -71: RESOLUTION AUTHORIZING THE INSTALLATION OF STOP SIGNS AT DORCHESTER ROAD AND STRATFORD ROAD 4B. Approve payment of claims MOTION by Gesch, seconded by Hanus to approve the payment of claims in the amount of $1,096,681.87. Upon roll call vote, the following voted in favor: Gesch and Hanus. The following voted against: None. Skinner abstained from voting because he has a claim for payment in these claims. Motion carried. 5. Comments and suggestions from citizens present on any item not on the agenda. Walter Neske, 6225 Red Oak Road, stated his disapproval that the Mayor allows Councilmember Skinner to wear his hat during the meetings, feeling that it is disrespectful to the flag and country. Hanus answered that he understands his point but doesn't have the authority to dictate how people dress at the meetings. Skinner stated he takes his hat off during the Pledge of Allegiance. 6. Public hearing — 2008 Street Improvement Assessment Hearing Dan Faulkner reviewed the 2008 Project, stating that it was the 6 th year of a 10 -year street improvement program. He reviewed the project costs and how the assessment figures were derived. Mayor Hanus opened the public hearing at 7:49 p.m. Shelly Young, 6190 Red Oak Road, asked why the initial notice stated 'h of the amount that the assessment notice states. She has lost her job, has health problems, taxes are enormous and she's putting her house on the market. She stated the work was nice, but the $4300 is unbelievable. Ritter stated that there has been misunderstanding in the past because the improvement hearing notice from late 2007 stated that the total project cost was $1,254,000 and some read that as $1250. Young asked if she could appeal and the Mayor informed her that she could. Hanson explained the certification process of the assessment onto the property taxes. Adie Meuwissen, 6170 Red Oak Road, asked how the unit price went up so much, 15 %. Hanus stated that the final didn't go up 15% from the estimate and stated that his increase could be due to addition of a new concrete apron. Meuwissen also asked about the drain field in Philbrook Park. Moore answered his concerns regarding the park and stated that the park improvement was paid for by the contractor for using the park for storage during the project. Ezra Bisson, 5777 Sunset Road, expressed concern if he will get another bill in 10 years because he only got a gas line repair and mill and overlay in front of his house. Hanson explained that all underground systems are evaluated and if repair is not warranted they wouldn't take up the whole street. Bisson wanted a guarantee that in 5 years the street won't be dug up again to fix a watermain and he assessed. Hanson stated that the utility fund would pay for watermain repair. Bisson also questioned if the Village by the Bay got off Scott free on this project with no assessment. Moore explained that previously the Council decided to take the equivalent of 12 units and put it on the city side of the Mound City Council Minutes — September 22, 2009 assessment for this area. Hanson stated that the Village by the Bay property owners were assessed for the 2002 internal street improvements. Bisson stated his main concern is why he is getting the same assessment as others when he only received a gas line and mill and overlay. Dave Rice, 2028 Grandview Blvd, stated he's on a corner lot and got charged for an apron when nothing was wrong with their original apron. He wants to see the pictures of his old apron and doesn't feel he should pay for a new one. Faulkner stated there was a large crack in the apron and Rice stated that portion of the apron is on city property and now he has a patch and crack in his driveway. He wants a picture of the apron before construction, and an explanation of why it was replaced. Faulkner was directed to provide this to him as it was not available at the meeting. Mike Skinner, 6021 Chestnut Road, stated that the notice received on the 28 was the first notice they received that they were going to get an assessment. He feels it's ridiculous that he's paying $4000 for an overlay, and he didn't get proper notice. He's also not seeing the benefit that others received. Ritter verified that an improvement hearing notice was mailed on November 13, 2007 to Michael Skinner at 6021 Chestnut Road, for the November 27, 2007 improvement hearing. Hanus stated that by mill and overlay they are trying to extend the overall life of the street. It was determined that the undergrade was not in the condition that it needed replacing, thus the mill and overlay. Faulkner explained that when the street condition is assessed, if there is no underground failure, mill and overlay is adequate improvement. Todd Schell, 6001 Chestnut Road, stated he did not attend the improvement hearing because he received a phone call about retaining walls. He asked at that time if there was an assessment planned for the property regarding the street improvements and was told no. At the same time he was asked if his retaining wall needed to be replaced and he was told no. He also asked if curbs are tacked onto the assessment and Hanson answered no. He also questioned the 8% interest because Faulkner displayed an assessment breakdown that stated interest was 6 %. Hanus stated he has every intention to get the interest at 6 %, and this will be addressed. Dan Herbon, 6381 Maple Road, stated he just moved to Mound and had no knowledge of this assessment. He feels that even 6% is too high. He also feels that more than 30 days notice should be given for an assessment of this size so people can plan for it. He was also concerned with the assessment in these tough economic times. Hanus stated that this project was planned in 2007 before the economic downturn. Hanus stated he will not support the 2010 project because of the economic conditions. Hanson stated that there is an obligation on the part of the seller to disclose that at closing. Herbon stated he was not made aware of a pending assessment when he purchased the house. Walter Neske, 6225 Red Oak Road stated that the property at 6256 Red Oak received an apron, but was not charged for it. Also, the property at 2166 Birch was only assessed a half. It's a corner lot on county property. Faulker stated that the apron at 6256 Red Oak was not assessed because it was in near -new condition. Neske stated that 6224 Birch was assessed for an apron and he has video that it was replaced and was not in Mound City Council Minutes — September 22, 2009 need of repair. Also he expressed concern over a fire lane that 's next to his property and that the City says it's a street so he had to get a variance for his garage in 1991. Hanus stated there may be variances required from fire lanes. Greg Severson, 5636 Alder Road, presented an objection statement and pictures of his property to the Council, and presented a signed and dated copy to the City Clerk as a formal objection to the assessment. Hanus stated that since the project began many years ago, whether you have a driveway on the street or not doesn't determine if the assessment applies from that street. If you abut a street, it's assessable. Severson abuts a street and uses the street and therefore the assessment is applicable. Hanson read a staff memo addressing Severson's situation stating that the assessment policy and past practice dictates that the property should be assessed a unit charge. Christina Zylman, 6326 Rambler Lane, asked if the city is paying for the water, sewer, curb and retaining walls, what the assessment is for. Hanus stated it's for the road and apron, if replaced. Zylman feels her apron was fine and shouldn't get charged an extra $829 for it's repair. She questioned how it was decided which aprons to replace and Faulkner stated that when a watermain and street was replaced they can't not tear out the apron. Zylman doesn't feel she should pay for an apron that was damaged because the watermain was repaired, and that they didn't even do a good job on the new apron. She was also upset that during construction piles of dirt were put on good bushes instead of next to them where landscaping wouldn't have been harmed. Hanus asked if she contacted the City regarding her bushes and she stated that she did and did get some replaced. Faulkner stated that it's up to the Council to assess for aprons, but it has been policy to do so. He has pictures and notes on her apron and it looks like there were no cracks in her apron. Zylman asked where the money is coming from for this project and Hanus stated it was bonded for. Zylman asked about the interest on the bonds and Finance Director Pausche stated that the average coupon rate is 4 %. Zylman objects to charging residents more than the 4% that the city's is paying. Pausche stated it's common practice and recommended by financial advisors, for cities to charge 2% over coupon rate to cover the city's costs. Hanus asked Faulkner if he could determine which aprons were removed for what reasons, and Faulkner said he could after further review of the plans. Zylman asked the Council to take into consideration if a resident had an apron replaced strictly because of watermain or sewer work, they not be charged for it. Carol Kelly, 2206 Millpond Lane, stated her concern for paying for work done inadequately. Her driveway was in perfect condition and a large chunk was taken out and it now heaves. She stated that Faulkner has promised her that it will be fixed. Hanus stated that the assessment is a different issue due to timelines and guidelines. Hanson stated that it will be fixed to her satisfaction but the work can't be discounted. Young wanted something in writing that her concrete driveway and apron will be fixed and Hanson stated that the written minutes are record of commitment that the work will be done to her satisfaction. Hanus made note that she is not being assessed for an apron, only the street, so she is not paying for the part that was not done correctly. Jim Swietlik, 6363 Rambler Lane, stated he served the flag and a lot of his neighbors took the wind out of his sails. He stated that this is not democracy, it's fascism. Mound City Council Minutes — September 22, 2009 Bruce Suhns, representing the Westonka -Orono Sports Center at 2121 Commerce Blvd., stated they are a charitable, 501 C organization and asked if there is consideration for groups like this for this assessment. Moore stated that the status of the owner is not pertinent to the assessment, per Minnesota State Law. Hanus stated that churches also get assessed. Lynn Panning, 6290 Birch Lane, stated her apron was also removed and she thought it was okay, curbs and gutters were removed and asked why hers was replaced. Faulkner stated he will research it. Panning stated that 52% of the aprons were replaced and 48 were not, and asked why. Hanus stated that this was pretty much discussed and explained already. Panning questioned why she should pay for an apron if it had to be removed to put in water and sewer lines. Hanus stated that is an issue that will be discussed, but the reasons she asked for have been already laid out. She turned in her objection to the assessment. Gerald Babb, 2169 Birch Lane, stated he has something totally different to address. He paid to have his property checked and stakes put in so he knows where his property lines are and his stakes were removed and not replaced. He has pictures of before and after and wants to know where his property stakes are. Faulkner asked if he reported it to anyone prior to now and he stated he reported it to Colin Quinn, the engineer's inspector. Hanus stated that Faulker will research this and that it needs to be corrected. Walter Neske, 6225 Red Oak Road, stated that the property markers throughout this project were removed. Two residents complained and they were replaced but who's going to pick up the cost to replace them. He stated It's almost like a class action law suit because all of them are gone. He took extensive video and probably has video of 6290 Birch and estimates that concrete doesn't look up to his standards. He stated that the retaining wall was flagstone and replaced with different material. The curb was good and now new one cracked, and also disagrees with 8% interest. Michael Murphy, 5964 Sunset Road, stated he has damage to his concrete driveway that is not yet repaired. The driveway was cracked during construction. They repaired the apron, but not the driveway. Hanus stated this will be added to this list for the engineer to check on. Mark Hagen, 6382 Maple Drive, stated he couldn't park in front of his house all summer and they used his area for staging and that he probably won't be compensated for that. Also when the city adds 2% interest to the money, that's insulting twice. He also expressed that he was intrigued by the rate of payment, and that have two months from notice of assessment to pay it. Hanus stated that the payment stipulations are according to State Statute. He stated that the council is elected by them and he feels they are not on their side. Hanus stated that they also have an obligation to provide certain services, including streets in need of repair. This process is what the council decided was the fairest option back when the 10 -year project started. He also stated that he's taking the economy into consideration and currently is not in support next year's project. Hanson stated that the city also saved a million dollars in this project by doing it at this time. Mound City Council Minutes — September 22, 2009 Greg Severson, 5636 Alder Road, expressed that the developer should be paying for Alder and Bellaire because it was destroyed when Village By The Bay was developed. He asked about the weight restrictions on those streets and asked if the developer was required to replace that road. Hanus stated it's a matter of wear and tear, and that garbage trucks run on those roads, also. Skinner agreed that they contributed and that garbage trucks and school buses also run on the street and contribute also. Hanson stated that regardless of the development, the street was scheduled to be reconstructed according to the schedule done when the 10 -year project began. Severson asked again why the developer wasn't required to replace the road. Hanson stated that these questions were also raised when Saunders was developed and using Halstead Lane. Severson feels that the developer should pay for all of Alder Road. Michael Murphy, 5964 Sunset Road, asked if it is determined that his driveway should be repaired, would he be charged for that repair and Hanus stated that if it is demonstrated that that damage was done as a result of the project it will be a repair that the contractor is responsible for. Hanson agreed that it seems like this would be a contractor expense. Faulkner and Moore will review this. Christina Zylman, 6326 Rambler Lane, approached again to state that she wanted to be sure everyone heard that the Finance Director previously said that 2% finance charge on top of the 4% bond charge is something that the Council has flexibility with and hoped that the Council because of the economy, would not charge the extra 2 %. Mayor Hanus recessed at 9:25 p.m. and reconvened at 9:33 p.m. Mayor Hanus asked if there was more public comment. Kerry Latham, 6279 Linden Lane, stated she has two things, that the driveway was put in and she has a thing with the plows tearing them up. She feels she's paying for something that the city keeps tearing up. Also, due to construction that happened in the area, they have proposed that no parking signs be moved to where they were prior to the construction. They want them back on the south side of the street. She stated she's getting a petition for this request. Hanus stated that this has happened in a lot of streets after construction. They moved them to standardize them, however, similar issues have come up where it didn't work for the neighborhood and they petitioned to change them and they have complied with the requests. He stated they will consider it when the petition is received. Upon no further public comment, Mayor Hanus closed the public hearing at 9:38 p.m. Hanus stated that there have been a lot of things mentioned tonight, a few of which he would like to have some further discussion on. He would like to defer action on the assessment until a full council is present. Skinner agreed and stated there are questions he'd like to get answered from engineering and finance, including the apron replacements. MOTION by Gesch, seconded by Skinner to table action until the October 13, 2009 meeting. All voted in favor. Motion carried. Mound City Council Minutes — September 22, 2009 Ritter will send out notices to the residents on the assessment roll informing them that action is tabled until October 13, which gives them 30 days from that date to prepay the assessment without interest. Councilmembers will email the City Manager with further questions and concerns and those will be addressed at the next Council meeting. 7. Construction and Realignment of CSAH 15/110 Project Assessments Moore stated that they finally have final numbers from the project. The improvement hearing for this project took place in May of 2004. The Council has the spreadsheet of the proposed assessments that will pay the unfunded portion of the project. Hanus stated that the Council has seen this project once and went down the path to assess the improvements. He is now more troubled about assessing abutting owners for streetscape and lights on a county road and has some reservations. Pausche stated that the bond has been issued and there is a deficit situation because the bond called for a $500,000+ assessment. If not assessed it would be levied from here on out. Hanus asked, that assuming the city went with what's in the packet, what the city's debt service would be annually. Pausche stated that currently the city is levying about $80,000 related to that debt issue, the 2004 GO Bonds. It's currently being paid with interfund loans. It was determined that the Council can set the assessment hearing and decide with the full Council on how to proceed, even not to assess. It was also consensus to advertise the assessment hearing with 6% interest instead of 8 %. A. MOTION by Skinner, seconded by Gesch to adopt the following resolution. All voted in favor. Motion carried. RESOLUTION NO. 09 -72: RESOLUTION DECLARING COST TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT ON THE CONSTRUCTION AND REALIGNMENT OF CSAH 15/110. B. MOTION by Hanus, seconded by Skinner to adopt the following resolution. All voted in favor. Motion carried. RESOLUTION NO. 09 -73: RESOLUTION FOR HEARING ON PROPOSED ASSESSMENT FOR THE CONSTRUCTION AND REALIGNMENT OF CSAH 15/110. 8. removed 9. Discussion /action on LGN Contract addendum for continuation of federal lobbying services Hanus feels that if LGN is going to just do what is in the contract, the cost should be about 1/3 of what is stated. Smith stated that she thinks action can be laid over until she gets clarification on what the city wants the scope of services to include. Mound City Council Minutes — September 22, 2009 MOTION by Hanus, seconded by Gesch to table action on this item. All voted in favor. Motion carried. 10. Sale of $4.100.000 GO Tax Increment Refunding Bonds, Series 2009D Finance Director Catherine Pausche reviewed the request to authorize sale of the subject bonds which will refinance the 2008A Temporary Tax increment Refinancing Bonds. MOTION by Hanus, seconded by Skinner to adopt the following resolution. All voted in favor. Motlon carried. RESOLUTION NO. 09 -74: RESOLUTION CALLING FOR THE SALE OF $4,100,000 G.O. TAX INCREMENT REFUNDING BONDS, SERIES 2009D 11. Fire Chief Greg Pederson on request to accept bid for new tanker /pumper Fire Chief Greg Pederson appeared before the Council action on the purchase of a new 2,000 Gallon Tanker /Pumper Truck. Advertisements for bid resulted three bids and he is requesting approval to purchase from the low bidder. MOTION by Hanus, seconded by Skinner to adopt the following resolution. All voted in favor. Motion carried. RESOLUTION NO. 09 -75: RESOLUTION ACCEPTING BID FOR 2,000 GALLON TANKER/PUMPER TRUCK 11.1. Snowmobile Crossing Amendment MOTION by Gesch, seconded by Hanus to approve the amendment to the snowmobile crossing permit which states that the permit will terminate if the trail is operated on the corridor in the winter. The following voted in favor: Hanus and Gesch. The following voted against: Skinner. Motion carried. 12. Miscellaneous /Correspondence A. Comments /reports from Council Members B. Reports: Finance Department — August 2009 C. Minutes: Planning Commission — 9/1/09 13. Adiourn MOTION by Skinner, seconded by Gesch to adjourn at 10:38 p.m. All voted in favor. Motion carried. Mayor Mark Hanus Attest: Bonnie Ritter, City Clerk