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
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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:
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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
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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.
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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.
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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.
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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.
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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
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BILLS
-March 08, 1994
Batch 4024
Total Bills
$79,826,48
$79,826.48