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1994-03-08March g, 1994 MINUTES - MOUND CITY COUNCIL - MARCH 8, 1994 The City Council of Mound, Hennepin County, Minnesota, met in regular session on Tuesday, March 8, 1994, in the Council Chambers at 5341 Maywood Road, in said City. Those present were: Mayor Skip Johnson, Councilmembers Andrea Ahrens, Liz Jensen, Phyllis Jessen and Ken Smith. Also present were: City Manager Edward J. Shukle, Jr., City Clerk Fran Clark, City Attorney Curt Pearson, City Engineer John Cameron, Finance Director Gino Businaro, Liquor Store Manager Joel Krumm, City Insurance Agent Carl Bennetsen, and the following interested citizens: Jeff Nehring, Bob Morgan, Andy Anderson, Andrea Wing, Mike West, Justin Wing, Billy Householder, Wendy Geffre, Anne Householder, and Scot Anderson. The Mayor opened the meeting and welcomed the people in attendance. The Pledge of Allegiance led by Cub Scout Troop Den//5 was recited. 1.0 RECYCLOTTO WINNER The Mayor presented $50 Westonka Dollars to Richard Oliver, 4824 Longford Road, for recycling the week of March 1, 1994. 1.1 MINUTES MOTION made by Ahrens, seconded by Smith to approve the Minutes of the February 22, 1994, Regular Meeting, as submitted. The vote was unanimously in favor. Motion carried. 1.2 CASE//93-058: JAMES & CATHERINE VEIT, 2563 LOST LAKE ROAD, LOT 18, BLOCK 1, LOST LAKE ADDITION, PID//24-117-24 22 0032, RESOLUTION OF DENIAL RE: VACATION OF DRAINAGE EASEMENT The City Manager explained that at the last meeting this request was reviewed by the City Council. The Council voted to deny the request for a vacation of a drainage easement and directed the City Attorney to prepare a resolution of denial with findings. The proposed resolution was in the Council packet. Smith moved and Jensen seconded the following resolution: RESOLUTION//94-31 RESOLUTION OF DENIAL TO VACATE A PORTION OF AN EASEMENT ON LOT 18, BLOCK 1, LOST LAKE 108 March 8, 1994 The vote was 4 in favor with Ahrens voting nay. Motion carried. 1.3 The City Attorney stated that as a part of the negotiations that Staff has had with the Veits, if they are to get a building permit, the City wants something that is placed of record indicating that if the house is located where is was suggested or in that general location that they will be utilizing part of the City's drainage easement to get to the lower level of the structure. The City Manager directed that the City Attorney prepare a Declaration and Agreement stating that the Veits understand that if they do this, the City has the right to utilize the easement and if at some future time there is a need for this easement, they would not be able to get to that level. He then presented the Declaration and Agreement of Estoppel that will be presented to the Veits. He asked that the Mayor and Manager be authorized to execute this. This will then be placed of record on the property at the County. Jessen moved and Jensen seconded the following resolution: RESOLUTION//94-32 RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE A DECLARATION AND AGREEMENT OF ESTOPPEL WITH THE VEITS ON LOT 18, BLOCK 1, LOST LAKE The vote was unanimously in favor. Motion carried. 1.4 BID AWARD: WATER METER READING EQUIPMENT The Mayor removed himself from the Council for this item. He then left the Council Chambers. Acting Mayor Jensen took over the meeting. The City Manager explained the background of this item. On January 11, 1994, the Council rejected all bids for this water meter reading equipment and authorized readvertising because there was confusion on whether the low bidder met the specifications. The City did readvertise and has received the following bids: Schlumberger Industries, Inc. Water Pro Supplies Corporation $330,390.00 and $336,800.00. The City Manager then introduced John Cameron and Rodney Gordon, from Mc Combs Frank Roos, City Engineering firm. The recommendation was to award the bid to Schlumberger Industries, Inc. in the amount of $330,390.00. Schlumberger is the general contractor for the equipment and will be installing the equipment themselves. Northern Water Works is the local distributor for Schlumberger. Smith moved and Jessen seconded the following resolution: 109 l!O March 8, 1994 RESOLUTION//94-33 RESOLUTION TO WATER METER SCHLUMBERGER INDUSTRIES, INC. AMOUNT OF $330,390.00 The vote was 4 in favor with Mayor Johnson absent and excused. Motion carded. The Mayor returned to the meeting and relieved Acting Mayor Jensen. 1.5 AWARD THE BID FOR THE READING EQUIPMENT TO IN THE 1994 COMMERCIAL INSURANCE PROGRAM - CARL BENNETSEN, R. L. YOUNGDAHL & ASSOCIATES Carl Bennetsen, R. L. Youngdahl & Associates, reviewed the insurance coverage for 1994. 1994-95 1993-94 Property 8,535 8,247 Business Interruption 258 INCLUDED Crime Public Employee Dishonesty 563 1,100 City Clerk & Treasurer Bonds INCLUDED 200 Theft, Disappearance & Destruction 365 365 Forgery or Alteration 62 138 General Liability Errors & Omissions 50,257 45,975 INCLUDED 5,896 Automobile Liability 11,255 13,500 UM/UIM 451 555 Physical Damage 10,011 10,699 Miscellaneous Equipment 1,112 N/A Inland Marine 2,351 3,056 Liquor Liability 8,580 7,731 Fireman's AD&D 300 300 Workers' Compensation 55,554 53,234 Boiler & Machinery 2,339 2,217 TOTAL ESTIMATED PREMIUM 151,993 153,471 110 March 8, 1994 Mr. Bennetsen explained that the two areas of insurance that generate the majority of the premiums are: 1. Municipal Liability - This covers bodily injury and property damage negligence claims including municipal errors and omissions claims - $50,257. 2. Workers' Compensation - Covers employee work place injuries as required under Minnesota Statutes - $55,554, subject to payroll audit. Over the past five years as a result of the League of Minnesota Cities Trust (LMCIT) program, the City has received an average annual dividend of $27,465, further reducing insurance costs. The LMCIT is offering three coverage options for consideration: Open Meeting Law Defense Cost Reimbursement Coverage - Will reimburse city officials for 80% of the legal costs they incur to defend themselves if they are charged with violating the Open Meeting Law, to a maximum of $20,000 after the official has incurred these costs. - COST $754.00 FOR 1994. Excess Liability Coverage Limits - The Minnesota Statutes limit the city's tort liability to $600,000 per occurrence. LMCIT provides a standard $600,000 liability coverage limit to match the statutory limit. However, there are several ways in which that coverage could turn out not to be enough. He referred to the LMCIT bulletin which was presented to the Council. LMCIT Package Deductible Options - (Excluding Workers' Compensation and non LMCIT packages) - presently the City of Mound has a $500 deductible, which applies to the actual loss payment only. The deductible options offered are: a. bo Deductible $10,000 each occurrence, $10,000 annual aggregate $1,000 per loss per line coverage thereafter, approximate $7,250 savings Deductible $25,000 each occurrence, $25,000 annual aggregate $ 1,000 per loss per line coverage thereafter, approximate $28,900 savings. Both the $10,000 and $25,000 deductible options include legal defense costs in the actual claim cost that would have to be reimbursed to the LMCIT. NOTE: A larger deductible could possibly reduce any potential future LMCIT dividends because there would be less premium. The Council discussed the new options. They decided to continue the coverage as presented, adding the open meeting law defense cost reimbursement coverage and taking the other 2 options under advisement for further discussion at the Committee of the Whole Meeting in April. 111 112 March 8, 1994 Jensen moved and Jessen seconded the following resolution: RESOLUTION//94-34 RESOLUTION ACCEPTING THE POLICIES, PREMIUMS AND COMPANIES AS SUBMITTED BY CARL BENNETSEN, R. L. YOUNGDAHL & ASSOCIATES FOR THE 1994 INSURANCE PROGRAM INCLUDING THE OPEN MEETING LAW DEFENSE COST REIMBURSEMENT COVERAGE The vote was unanimously in favor. Motion carried. COMMENTS AND SUGGESTIONS FROM CITIZENS PRESENT There were none. 1.6 1993 DEPARTMENT HEAD ANNUAL REPORT Liquor Store Manager Joel Krumm presented his 1993 Annual Report to the Council. 1.7 SET BID OPENING FOR 1994 SEAL COAT PROGRAM MOTION made by Ahrens seconded by Smith to set the bid opening for the 1994 Seal Coat Program for March 31, 1994, at 11:00 A.M. The vote was unanimously in favor. Motion carried. 1.8 SET BID OPENING FOR REPAINTING OF EVERGREEN WATER TOWER 1.9 MOTION made by Ahrens seconded by Smith to set the bid opening for the repainting of Evergreen Water Town for March 31, 1994, at 11:00 A.M. The vote was unanimously in favor. Motion carried. SET PUBLIC HEARING TO CONSIDER THE ISSUANCE OF A CONDITIONAL USE PERMIT TO ALLOW THE EXPANSION OF A PUBLIC SCHOOL KNOWN AS SHIRLEY HILLS ELEMENTARY SCHOOL LOCATED IN THE R-1 SINGLE FAMILY RESIDENTIAL ZONING DISTRICT MOTION made by Smith, seconded by Jessen to set a public hearing for April 12, 1994, at 7:30 P.M. to consider the issuance of a Conditional Use Permit to allow expansion of a public school known at Shirley Hills Elementary School located in the R-1 Single Family Residential Zoning District. The vote was unanimously in favor. Motion carried. 112 March §, 1994 1.10 PAYMENT OF BILLS MOTION made by Jensen, seconded by Jessen to authorize the payment of bills as presented on the pre-list in the amount of $79,826.48, when funds are available. A roll call vote was unanimously in favor. Motion carried. ADD-ONS 1.11 EXEMPTION FROM LAWFUL GAMBLING LICENSE The City Clerk explained that the Knights of Columbus has requested that the Council allow an Exemption from Lawful Gambling License to be obtained from the Gambling Control Board for bingo on April 15, 1994, and bingo and a raffle on May 13, 1994, at Our Lady of the Lake School. Johnson moved and Ahrens seconded the following resolution: RESOLUTION #94-35 RESOLUTION APPROVING A GAMBLING PERMIT APPLICATION FOR THE KNIGHTS OF COLUMBUS #6005 AT OUR LADY OF THE LAKE SCHOOL - APRIL 15, 1994 AND MAY 13, 1994 The vote was unanimously in favor. Motion carried. 1.12 ISTEA PROJECT GRANT APPLICATION The City Manager reviewed Bruce Chamberlain's memo dated March 8, 1994. He explained that in 1991 the Intermodal Surface Transportation Efficiency Act (ISTEA) was passed to allow for more creative and grass-roots use of transportation funds. These funds are to be administered by various agencies, usually at the state or metro government level and made available to local governments for specific types of projects. ISTEA grants are cost-share grants which means that the City must pay for at least 20% of the project. Bruce has determined that development of the Lost Lake channel and the transient dock facilities along Auditor's Road as outlined in the Downtown Mound Concept Plan is eligible for a Transportation Enhancement grant (maximum amount $500,000). Hoisington Koegler-Group, Inc. proposes to complete the grant application including the necessary tasks listed below on an hourly basis not be exceed $1,800. This amount would not include item #5 below. 2. 3. 4. Estimation of project costs. Investigation of needed approval for the project. Development of project timetable. Discussions with the DNR and other agencies which could impact the project. 113 1!4 March 8, 1994 Preliminary environmental evaluation. Formulate application document and exhibits. Work with City Staff to accumulate the necessary letters and approvals from the City Council. Item//5 is estimated to cost about $1,000. If the City were to secure this grant, it would have to come up with matching funds of $200,000 to $300,000. The City would know by July or August if the grant were approved. The funds to finance this project would not have to be committed at that time but the City would have to acknowledge that it would be able to come up with the money and complete the project by 1998. He suggested that the City could identify the money in Fund 30 to finance this project. The funds to finance the approximately $3,000 in application costs could come from the CDBG funds, revolving loan fund. April 1 is the deadline for the current round of grant applications. If it is not approved, we would have all the information available for a future ISTEA grant application. The Council suggested that bike and hiking trails be added as item #8. MOTION made by Jessen, seconded by Jensen to go ahead and prepare the ISTEA Grant Application, authorizing costs of up to $3,000 to be paid from CDBG funds, including bike and hiking paths in the proposal. favor. Motion carried. INFORMATION/MISCELLANEOUS Ae B. C. D. The vote was unanimously in Department Head Monthly Reports for February. 1994. LMCD Representative's Monthly Report for February 1994. LMCD Mailings. REMINDER: League of Minnesota Cities (LMC) annual Legislative Conference is scheduled for Thursday, March 24, 1994, in St. Paul. Please let Fran know ASAP if you are interested in attending. REMINDER: No COW Meeting March 15, 1994. Next COW Meeting is April 19, 1994, at 7:30 P.M. Economic Development Commission Minutes of February 10, 1994 & February 17, 1994. Planning Commission Minutes of February 28, 1994. 114 March 8, 1994 1.13 LMCD INFORMATION The Mayor reported that he had received a fax from Orono Councilmember Gabriel Jabbour regarding proposed legislation dealing with the LMCD, reforming the board where there would be 7 members based on population and lake frontage. The proposal is that these members be elected by the cities involved. Mound would be one district so the City Council would elect a member. Some of the smaller cities would join together because of their population and lake frontage, and then there would be 3 City Councils to elect their representative. This legislation also talks about funding, suggesting that because it is a regional resource it be funded 60% as a regional resource from a fee on boats. 40 % being funded by the local municipalities. A copy will be forthcoming for Council review. Councilmember Jabbour thought it would be carried to the Senate floor by Senator Gen Olson and presented. MOTION made by Smith, seconded by Jensen to adjourn at 9:00 P.M. The vote was unanimously in favor. Motion carried. Edward J. Shukle, 'Jr."~, ~ity Manager AtteSt: City Clerk 115 BILLS -March 08, 1994 Batch 4024 Total Bills $79,826,48 $79,826.48