2019-10-08 CC Meeting MinutesMOUND CITY COUNCIL MINUTES
October 8, 2019
The City Council of the City of Mound, Hennepin County, Minnesota, met in regular session on
Tuesday, October 8, 2019 at 7:00 p.m. in the council chambers of the Centennial Building.
Members present: Mayor Ray Salazar, Council Member Jeff Bergquist, Sherrie Pugh, Phil
Velsor and Paula Larson
Members absent: None
Others present: City Manager Eric Hoversten, Director of Finance & Admin Services Catherine
Pausche, City Engineer Brian Simmons, Mary Davis, Bruce Stillman, Joe Bruns, Floyd Doering,
Jess Schooner, Josh Fallen, Dan Saatzer, Margie Saatzar, Norm Leger, John Bittle, Eileen
Bittle, Derrick Haase, Catherine Bohne, Brittany Reyes, Alex Flemal, Alyssa Cruse, Maddie
Steanl, Zachary Babb, Allan Moran, Bill Edgeworth, Lauren Beauchamp, Alex Owens, Dianna
Shandorf, Greg Dettlaff, Nancy Selle, Diana Wigland, David Kalin, Isiah Dempsey, Seth
Anderson, Tyler Stevenson, Jayden Mclinchman, Nicole Hollins, Dillon Somnes, Jameson
Sexton, Dylan Albert, Noah Lietsan, Nichole Kelley
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 Salazar called the meeting to order at 7:00 p.m.
2. Pledge of Allegiance
3. Approve agenda, with any amendments
Hoversten noted additional information for Item 6D, which is a list of those property
owners who have submitted written objections to the street project special assessment as
of 1:00pm that day.
MOTION made by Bergquist seconded by Pugh to approve the agenda. All voted in
favor. Motion carried.
4. Consent agenda
Pugh asked to pull item 4H from the Consent agenda for discussion.
MOTION made by Larson, seconded by Bergquist, to approve the consent agenda
as amended. All voted in favor. Motion carried.
*A. Approve payment of claims in the amount of $351,482.92
*B. Approve minutes: 09-10-19 Regular Meeting
09-24-19 Regular Meeting
*C. RESOLUTION NO. 19-70: RESOLUTION DESIGNATING POLLING PLACES
Mound City Council Minutes — October 08, 2019
*D. APPROVE 1-4 DAY TEMPORARY ON -SALE LIQUOR LICENSE FOR NWTL
NOVEMBER 16, 2019 BACON FEST FUNDRAISER AT THE GILLESPIE CENTER
*E RESOLUTION NO. 19-71: RESOLUTION AMENDING RESOLUTION NO. 19-44
AUTHORIZING CONTRACT WITH Z SYSTEMS FOR PURCHASE OF COUNCIL
CHAMBERS HIGH DEFINITION VIDEO RECORDING EQUIPMENT
*F APPROVE CONTRACT IN THE AMOUNT OF $ 11,885 WITH AMERICAN
ENGINEERTESTING INC. (AET) FOR COMPLETION OF PHASE 11
ENVIRONMENTAL STUDY AND SOILS INVESTIGATION FOR WITHIN THE
HARBOR DISTRICT AREA
*G APPROVE PAY REQUEST #1 IN THE AMOUNT OF $16,733.44 TO KAMCO INC.
FOR THE 2019 CRACK SEAL CONTRACT PW -19-07
*H REMOVED
4H. (Removed) Approve Resolution approving public lands permit for 5000
ENCHANTED ROAD
Pugh requested item 4H be pulled from the consent agenda and referred to the Docks
Commission and Planning Commission due to some concerns expressed by the
neighbor who believes it is unnecessary and has repercussions as to water drainage to
the lake, potential to becoming space for extra parking and lack of any water retention
strategy for it. Pugh explained it is an important piece of property, it is part of our
commons that we need to preserve, and the turnaround is not necessary on the street.
Pugh noted these are relatively new houses and most are maximized on the site, and the
City already has significant potential water drainage issues into the lake. Pugh said she
visited the site and the homeowners were not there, but the neighbor was, who
expressed her objections and said she had met with Staff.
MOTION made by Pugh, to remand the public lands permit back to the Docks
Commission and Planning Commission. Seconded by none. Motion did not carry.
MOTION made by Bergquist, seconded by Velsor, to approve the following resolution.
The following voted in favor: Salazar, Bergquist, Velsor. The following voted against:
Pugh, Larson. The following abstained: None. Motion carried.
RESOLUTIONNO. APPROVE
FOR PROPERTY 000 ENCHANTED -•.111
5. Comments and suggestions from citizens present on any item not on the agenda.
(Limit to 3 minutes per speaker.)
None were offered.
Pugh said she was appointed last week to serve on the Hennepin County Community
Action Program (CAP) commission as an elected official representative.
Salazar recognized the large crowd and asked one student introduce and represent the
Mound City Council Minutes — October 08, 2019
class and share the name of the teacher.
Zackery Babb, said the group is in Mr. Kiel's Advanced Government or Government
class.
6. Public Hearings
A Action on Resolution Adopting Assessment for Delinquent Municipal Utility Bills
and Certifying to the County Auditor at 5% Interest — Levy #20286
Pausche noted she is here to request the annual public hearings on delinquent
utility bills and miscellaneous assessments. Pausche said notices are sent to
property owners and renters, if applicable, informing them of any outstanding
balances as of the July billing and the potential for any unpaid amounts as of
November 15th to be assessed to property taxes. Pausche said the $460K
assessment roll is typical with about half being paid before the 11115 deadline in
order to avoid interest and being rolled to taxes. Pausche noted State Statute
allows cities to assess delinquent utility bills to taxes which is very helpful for a
small city not to have to pursue collections or shut off water to get paid. Pausche
said this is a public hearing, which will allow anyone to speak on the matter, and
otherwise the resolution is on page 1911.
Mayor Salazar Opened the public hearing at 7:10 p.m. and upon receiving no
comment, closed the public hearing at 7:11 p.m.
MOTION by Bergquist, seconded by Velsor, to approve the following resolution. All
voted in favor. Motion carried.
RESOLUTION NO. 19-73: RESOLUTION ADOPTING ASSESSMENT FOR
DELINQUENT MUNICIPAL UTILITY BILLS AND CERTIFYING TO THE COUNTY
AUDITOR AT 5% INTEREST — LEVY #20286
B. Action on Resolution Adopting Assessment for Miscellaneous Expenses and
Certifying to the County Auditor at 5% Interest — Lew #20285
Pausche said this is also an annual assessment for any miscellaneous abatements
that are done, including mowing grass on vacant properties and occasionally more
significant abatements requiring construction remediation. Pausche said this year
is low key and the owners have been notified that they have the opportunity to pay
before November 15 to avoid it being rolled onto the taxes.
Mayor Salazar opened the public hearing at 7:14 and upon receiving no comment,
closed the public hearing.
MOTION by Bergquist, seconded by Larson, to approve the following resolution.
All voted in favor. Motion carried.
Mound City Council Minutes — October 08, 2019
C. RESOLUTION NO: 19-74: RESOLUTION ADOPTING ASSESSMENT FOR
MISCELLANEOUS EXPENSES AND CERTIFYING TO THE COUNTY AUDITOR
AT 5% INTEREST — LEVY #20285
Action on Resolution Adopting Reassessment for 2013 Street & Utility, and
Retaining Wall Improvement Project for PID 30-117-23-22-0027 Lew # 20288
Pausche said this is an unusual situation where the property could not be assessed
as part of the 2013 street and utility retraining wall improvement project because it
was in tax forfeit status and the County asked for it to be reassessed now that it
sold. Pausche stated the person who bought it was made aware of the assessment
and that this is just housekeeping.
MOTION by Pugh, seconded by Bergquist, to approve the following resolution. All
voted in favor. Motion carried.
RESOLUTION NO. 19-75: RESOLUTION ADOPTING REASSESSMENT FOR
2013 STREET, UTILITY, AND RETAINING WALL IMPROVEMENT PROJECT
FOR PID 30-117-23-22-0027 LEVY # 20288
D. Action on Resolution Adopting Assessment for 2018 Street & Utility Improvement
Project — Westedge Blvd, City Project No. PW -18-01, Levy # 20287
Brian Simmons, City Engineer, addressed the Council with an overview of the
history of capital improvement projects to reconstruct streets and utilities in Mound
since 2004. Simmons stated that according to the City of Mound Assessment
Policy the City has been using assessments to fund the street portions of those
projects. Simmons added that originally the Westedge street project was
programmed for reconstruction in 2017 and the City and Metropolitan Council were
meeting since 2015-2016 to ramp up a cooperative project for 2018 in order to gain
some efficiency, cost savings and to cause a lower impact to residents and drivers
in the area. Simmons said Westedge Blvd. was past its usable life and was in need
of reconstruction and the project was delayed so construction would only happen
once. Simmons' presentation included a map representing the years specific
streets were reconstructed since 2003. Simmons presentation showed before and
after pictures of Westedge Boulevard, noting it was in pretty rough shape compared
it to what it looks like now.
Simmons explained to the Council that Minnesota State Statute 429 allows
municipalities to assess for improvements. Simmons said homeowners in the area
have been properly noticed with a preliminary assessment and also the final
assessment which is what tonight's final assessment hearing is addressing.
Simmons explained the purpose of the final assessment hearing is to present the
final project costs, the proposed actual assessments and request action to approve
the assessments. Simmons said if approved, the assessments are certified to the
County Auditor to the property taxes or owners can choose to pay them in full prior
to November 15th. After November 15 unpaid balances are certified to the County
at 5% interest over 15 years, beginning with the 2020 property taxes.
Mound City Council Minutes — October 08, 2019
Simmons presented a snapshot of the project timeline, noting items in red font are
the MN State Statute 429 requirements. Simmons added the list of dates include
project items which delineate the planning of the project, the proposal to use
assessments to pay for the project, the construction of the project and the final
assessment hearing for the project. Simmons next addressed the City Assessment
Policy which shows how assessments are calculated for standard street projects
which do not take into account costs for an extra wide street or streets which are
designed to accommodate heavier traffic. Simmons said the street assessments
are based on the actual construction project costs for a 28 -foot -wide standard street
section, with any cost related to sewer or water main construction subtracted.
Simmons said 1/3 of the cost of the street project is then assumed by the City with
the other 2/3 being paid through the street assessment. Simmons added that
residential properties assessments are calculated based on Equivalent Residential
Units (ERUs) method per the City's assessment policy which has been used since
2003. This method is considered a more equitable method than other methods,
which may incorporate property size, taxable value, front footage, etc. Simmons
stated that City Policy also states that each assessment is capped at a total
assessment of $6,600.00 per ERU.
Simmons explained there can be no property which is assessed at more than one
ERU. Simmons said some properties are assessed at less than 1 ERU and those
properties could be a corner lot which may have already been assessed a'/2 ERU
on a past project. The final assessments could include other improvements such
as a concrete driveway apron if one didn't exist before the project and Simmons
stated some owners have asked for additional utility services or minor
improvements to benefit their individual properties, which explains some of the
assessments higher than a full or 1/2 ERU. Simmons said commercial
assessments are based on a combination method, which combines the front
footage on the lot area. Simmons noted there was only one commercial property in
this project and that assessment cost was removed before assigning the residential
ERUs.
Simmons directed anyone in the audience who has issues with the project other
than the amount of the assessment, including issues with the completeness of
work, or issues with the quality of work, to meet with Mr. Mark Onken in the back
Conference Room.
Simmons stated they have a running punch list of items that are unfinished on the
project, noting the contractor is still active and the warranty period has not begun,
so if there are any issues with the work, that is what Onken is here for, and that is
not what the public hearing is for.
Simmons restated that those who object to the assessment must put it in writing
either at or before the meeting and if the assessment roll is adopted, anyone who
wants to continue objecting to their assessment has to file in District Court within 30
days after the assessment roll is adopted, which the deadline would be no later
than November 7th. Simmons noted this recourse is specified in Minnesota State
Statute 429 if property owners continue to object to the assessment after the
hearing and adoption.
Simmons stated the estimated project costs are typically going to be reduced when
Mound City Council Minutes — October 08, 2019
used for the final assessment. Simmons added the estimated number of ERU
which were used to calculate the final assessment increased from 32.5 ERU's to a
final roll 34.5 ERU's due to lot splits.
Mayor Salazar opened the Public Hearing at 7:29 p.m.
Bruce Stillman, 6200 Westedge Blvd, stated there was no benefit to his property
from this project. Stillman noted the road was old but was fine. Stillman noted the
Met Council pipes needed to be put down was through taking out the entire street
but Eric Hoversten said that it didn't have to happen. Stillman disputed the costs
for the projects and stated he felt the City cost was nearly nothing. Stillman said a
base property tax should be assessed everyone in the City and other residents
wouldn't notice a $14.00 increase if assessed through the City. Stillman said a
major tree was lost on the property line that was the buffer from having to see my
neighbors dilapidated shed. Stillman stated the original rollover neighborhood curb
was replaced with an institutional city -style curb. Stillman argued the property value
did not go up and that the streets were fine before, or at best the streets just
needed resurfacing and that a project has to put back what they ruin so in certain
ways the street was completely paid for.
Stillman stated the assessment does not fit this situation because it is not a normal
street since everybody uses it and there wasn't a choice on curb styles. Stillman
argued for a base property tax to be put on everyone's property to pay for the street
improvement, with rebates for those who already paid assessments, which would
be similar to the water and sewer utilities, where when everybody uses something,
everybody should pay for it.
Stillman said the only way for the City/Met Council to properly do the project was to
dig up the entire street to put the pipes down and address the old water lines and is
not clear how much footage had to be replaced because the waterlines were in the
way of the project. Stillman stated because the waterline was in the way the
partnership was a good way of doing it, but that he does not believe the argument
that the project could be done without tearing up the streets, and argues it would
have cost the Met Council close to a million dollars or more to do it that way.
Stillman said according to the paperwork, Met Council gave Mound utilities
$899,000. Stillman argued it cost $5000 to put the water pipe in and believes
Mound has a budget for redoing the waterline on the street and it seems to have
cost Mound nothing to put in the waterline.
Margie Saatzer 2625 Westedge, said she has lived here 35 years. Saatzer noted
at around 2006 there was a notice sent out about this project and several of them
who attended a meeting at City Hall were told what Saatzer considers an oral
contract that people were not going to have to pay for the road. Saatzer said they
were told the project could start in the next 5 but most likely 10 years in the future.
Saatzer recalled many of those in attendance that night were told it's going to be a
big mess and explained what was going to happen, everything would need to be
torn up for months and months, but that they would not have to pay for the road.
Margie also recalls around 2006, there was also a proposed project on the island
and that island people were at that meeting too.
Mound City Council Minutes — October 08, 2019
Saatzer agreed with Stillman that there was no benefit or any improvement from the
road, noting the neighborhood was totally demolished, big trees taken out even
when they didn't use the land. Saatzer stated the project totally ruined the look of
the neighborhood and that she absolutely hates the industrial curbs, noting her
husband said their street should be called Industrial Boulevard now.
Saatzer stated her biggest concern is the new street did not just affect those on
Westedge, but everyone in Mound benefitted, and she asked why are they paying
for what all people in Mound benefited from.
Saatzer said there are two reasons the road was in rough shape, construction
traffic from the Saunders development and all the construction traffic for that and
the construction of the new treatment plant from construction traffic. Saatzer said
for years all those big trucks tore up and down the road nonstop from early in the
morning till dusk and it doesn't seem like Mound is taking any responsibility for
ripping up their road.
Bruce Stillman, 6200 Westedge Blvd, said it is a big detriment to the neighborhood
that they took seven feet wider than the street itself resulting in loss of trees and
landscape. Stillman argued against the assessment options and suggested a study
to explain the choices and impact on property rights, not just trying to sell the
existing system of assessments and keep it going, but create a better system.
Stillman stated the council has the ability to adopt a new system right now, saying
they just have to be creative and make it fair that if everybody uses the streets,
everybody should pay for it.
Stillman wants the old curve back and argues the numbers in the presentation were
not correct and don't match up with the numbers he has, saying Bolton and Menk
left out things and there are other ways this project could be looked at. Stillman
said the study should be explained and instead of assessing them, let them use
their money to put the character back into the street while the council creates a
better system.
Stillman further explained the document he's referencing the feasibility study for the
project which came in at an estimated cost of $2,683,000.00 which included
$899,000.00 of City improvements paid for by the MCES.
Hoversten explained the costs relayed in the Feasibility Report for the project.
Hoversten said all things in the Feasibility Report may or may not have been a part
of the City -only project which was contemplated when Westedge was originally
identified as a street that needed to be rebuilt. Hoversten added that combining with
the Met Council lessened the impact of multiple projects being done on the street
rather than what took place in the project which was smart for the City to do when
there was already going to be construction going on under the street which is part
of what the City took into account when the design became a systematic street
improvement project which included the under the street utilities. Hoversten said
the Met Council paid for portions of the project which was not included in the initial
Feasibility Study because the Met Council needed those completed before doing
their under the street portion of the construction.
Mound City Council Minutes — October 08, 2019
Stillman said in order to get the benefit, when the agreement was made, the entire
street had to be used up, gone, and because those two utilities made a beneficial
agreement for that benefited them, it took out the entire street, they have to have
the capital for replacing the street, they have to put the street back, they saved a
ton of money. Stillman argues it shouldn't cost the residents money and it was
turned into two projects, which would at least be able to drive to our houses on half
the street instead of having to walk through mud, a half a block carrying groceries,
and every so often you can't go this way, addresses close down, it's a lot extra
inconvenience doubling up this partnership and the partnership had to take out the
entire street and those two utilities are responsible for putting the street back, the
normal utility would take 1/3 of the street and the 2/3 of the neighbors would have
to pay for it, this was not a normal project.
Hoversten said a number of utility costs were born by the Met Council and the
procedure of the street assessment is for 1/3 of costs going to the City General
Fund and the other 2/3 to the benefitting property owner. Hoversten said the City
needed to sell bonds to get the financing for the project and the costs for the
financing and administrative costs for the financing needs to be paid.
Stillman said the new street is defective. Hoversten directed Stillman to speak with
Mr. Onken if there are defects in the street.
Salazar stated City streets like Westedge hasn't been repaired since the 1970's
and the City needed to address the quality of the streets at a time when the City
didn't have the funds reserved so the 1/3 and 2/3 Assessment Policy was created
to fund needed projects.
Norm Leger, 6221 Westedge Boulevard, asked if a neighborhood is to be
assessed, shouldn't be a discernible improvement to the neighborhood, and noted
the City needs to articulate what the benefits to the neighborhood were.
Leger agreed with Saatzer that any damage to the road was due to excessive truck
traffic caused by the water treatment reconstruction and the Saunders Lake
development and that everybody knows that heavy truck traffic causes hundreds of
times more damage to a road than residential traffic and that is was caused the
resurfacing to be needed. Leger pointed out that the water and sewer is something
that the entire community benefits from, which is the only discernible improvement,
so why should one neighborhood have to pay for it. Leger asked the city to please
articulate what the improvements to the neighborhood were because all they see
are the downgrades that took place, including removal of trees, shrubs, and new
grass that was planted in soil that was apparently planted in gravel extracted from a
weed infested gravel pit and some cheap curbs. Leger requested that it be stated
for the record, what improvements were that we specifically on Westedge are
paying for.
Gary Erdman, 2606 Westedge Boulevard, said he has lived 53 years in the same
place and that this is the worst job he's ever seen moneywise. Erdman said if you
took a picture of Westedge 10 or 15 years ago before they built all the housing in
Saunders and the sewer plant, you would have fallen over, and noted he paid for it
once before for the same thing. Erdman complained about the work and was
directed to discuss it with Onken in the conference room.
Mound City Council Minutes — October 08, 2019
Allan Moran, 6155 Evergreen, stated one side of his lot is on Westedge, and asked
if the gas company work during the project is paying for anything.
Simmons said the gas company exists in Mound under a franchise agreement and
that they often replace their utilities ahead of the construction projects. Simmons
said the curb and gutter installed on Westedge is a City standard and is effective at
retaining rainwater and is very durable.
Dan Saatzer, 2625 Westedge Boulevard, said he is not opposed to getting
assessed with projects that are explained in a straight forward manner. Saatzer
said the Met Council sewer line/regional upgrade project that happened to be in our
street and the plant just happens to be on our street and the line continues all the
way to Shakopee.
Saatzer questioned where the sewer line ends up because he thinks a project of
this magnitude should have accounted for a new street behind them but Mound
volunteered to pay for the street part and assess their residents.
Gary Erdman, 2606 Westedge Boulevard, asked why Westedge is considered a
County Road. Hoversten said Westedge, from County Road 110 to County Road
15, is a City Street.
Mayor Salazar closed the public hearing at 8:28 p.m. and brought the Assessment
back to the Council for discussion.
Bergquist asked Simmons what the average life expectancy of a street? Simmons
said it is 35-45 years if properly cared for.
Pugh asked if the City has engaged the Met Council in street projects previous
years. Simmons said near2015 on Tuxedo near Al and Alma's and parts of
Wilshire Blvd. and Bradford Lane.
Larson asked if Mound residents on the Island were assessed in a similar manner
for projects that the City worked in tandem with the Met Council and Simmons said
yes.
Larson asked if the Westedge project goes from the sewer plant on the edge of
Lake Langdon and Simmons clarified it is not a sewer plant but rather a pump
station which pumps regional flows out of Mound towards Blue Lake.
Larson asked if the pump station goes down Westedge Boulevard and continues
down County Road 44 and hooks up to the line at Highway 7 and Simmons said
yes.
Larson asked if Simmons is suggesting that it was time for a new road on
Westedge and Simmons said yes. Simmons added the maps of the capital
improvement plan from 2003 or 2004 showed Westedge improvement around 2017
when it was assumed Westedge would need reconstruction.
0
Mound City Council Minutes — October 08, 2019
MOTION by Velsor, seconded by Bergquist, to approve the following resolution. All
voted in favor. Motion carried.
RESOLUTION NO. 19-76: RESOLUTION ADOPTING ASSESSMENT FOR 2018
STREET & UTILITY IMPROVEMENT PROJECT — WESTEDGE BOULEVARD
CITY PROJECT NO. PW -18-01, LEVY #20287
Information/Miscellaneous
A. Comments/Reports from Council members
City Manager Hoversten highlighted the following dates:
October 15, at 6:30 Budget Workshop
November 9, Rotary Brewfest
Harbor Wine and Spirits is providing All You Can Eat products
November 4 - City Hall Staff resume Winter Hour Schedule
November 15 — Winter Parking Restrictions
Harbor Wine and Spirits announcements:
Ron Gust has been selected as a Liquor Store Manager
Kyle Christiansen has been promoted to Assistant Manager
B. Reports: Finance Department — August 2019 YTD
Liquor Store — September 2019
C. Minutes
D. Correspondence: MPCA — Notice of Intent to Adopt Rules —
Water Quality Standards Class 2 and 7 Use Desigations
8. Adiourn
MOTION made by Larson, seconded by Bergquist, to adjourn at 8:40p.m. All voted in
favor. Motion carried.
&q Mayor Raymond J. Salazar
av�ow�
Attest: Catherine Pausche, Clerk