2016-12-13 CC Meeting MinutesMOUND CITY COUNCIL MINUTES
December 13, 2016
The City Council of the City of Mound, Hennepin County, Minnesota, met in regular session on
Tuesday, December 13, 2016, at 7:00 p.m. in the council chambers of the Centennial Building.
Members present: Mayor Mark Wegscheid; Council members Jennifer Peterson, Heidi Gesch,
Kelli Gillispie and Ray Salazar
Members absent: None
Others present: City Manager/Public Works Director Eric Hoversten, Finance
Director/Clerk/Treasurer Catherine Pausche, Community Development Director Sarah Smith,
Administrative Assistant Mary Mackres, Dave Osmek, Jeff Bergquist, Cheryl Johnson, Jesse
Johnson, and Suzanne Dolder.
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 Wegscheid called the meeting to order at 7:00 p.m.
2. Pledge of Allegiance
3. Approve agenda
Hoversten noted an error on Item #9. The alpha sub -categories need to be re -alphabetized to
read A., B., C., and D.
MOTION by Salazar, seconded by Gesch, to approve the agenda as amended. All voted in
favor. Motion carried.
4. Consent agenda
MOTION by Gesch, seconded by Salazar, to approve the consent agenda. Upon roll call vote,
all voted in favor. Motion carried.
A. Approve payment of claims in the amount of $282,815.18.
B. Approve minutes: November 22, 2016 regular meeting
D. Approve a 1 Day to 4 Day Temporary On -Sale Liquor License for Our Lady of the Lake
Catholic Church Knights of Columbus Friday Shrimp Fry Fundraisers on March 3, 2017,
March 17, 2017, March 24, 2017, and April 7, 2017 with fees paid
E. Approve Policy FIN -012 -Utility Billing for New Construction Accounts
Mound City Council Minutes — December 13, 2016
F. Approve Pay Request No. 5 from Ryan Contracting in the amount of $303,622.80 for the
2016 Street, Utility and Retaining Wall Improvement Project; City Project Nos. PW -16-
01, PW -16-02, PW -16-03, PW -16-04
G. Approve Pay Request No. 12 from Geislinger & Sons, Inc. in the amount of $35,993.60
for the 2015 Street, Utility and Retaining Wall Improvements - Grandview Boulevard and
Tuxedo Boulevard, City Project Nos. PW -15-02 and PWA 5-01
I. RESOLUTION NO. 16-163: RESOLUTION APPROVING VARIANCES AND AN
EXPANSION PERMIT FOR 3185 PRIEST LANE
RIDGEJ. RESOLUTION NO. 16-164:
6385 BAY •
K. RESOLUTION NO. 16-165: RESOLUTION APPROVING RELEASE OF FINANCIAL
SECURITY FOR THE LANDINGS ON LOST LAKE
L. Approve a 1 Day to 4 Day Temporary On -Sale Liquor License for Northwest Tonka Lions
Chili Feed for the Troops fundraiser on January 15, 2017 at the Gillespie Center, with
fees paid.
M. Approve Appointments to Commissions (note application info for new commissioners will
be emailed to the Council and treated as private
data):
1. Planning Commission
a. Phil Veslor (New)
1 -year term through 2017
b. Dean Bussey (New)
2 -year term through 2018
c. David Pelka (New)
3 -year term through 2019
d. Jake Saystrom (New)
3 -year term through 2019
e. Jameson Smieja (Reappt)
3 -year term through 2019
2. Docks & Commons Commission
a. Susan Gardner, Abutter (Reappt)
3 -year term through 2019
b. Derrick Hentz, Slip Holder (Reappt)
3 -year term through 2019
5. Comments and suaaestions from citizens present on anv item not on the aaenda.
Dave Osmek, 4933 Crestview. State Senator Osmek thanked Ms. Gesch for her service to
the Council. Osmek proceeded to tell the Council that he met Ms. Gesch in 1998 at a
political convention and encouraged her to run for Mound City Council. Osmek said it was a
pleasure serving with Ms. Gesch for the past eight years.
6. Mayor Mark Wegscheid requesting action on a resolution recognizing Heidi Gesch for
her years of service on the Mound City Council
Mayor Wegscheid read the resolution to the public and thanked Ms. Gesch for her years of
service.
Mound City Council Minutes — December 13, 2016
MOTION by Gillispie, seconded by Salazar, approving the following resolution. Gillispie,
Salazar, Peterson, and Wegscheid voted in favor, Gesch abstained. Motion carried.
RESOLUTION NO. 16-167: RESOLUTION RECOGNIZING HEIDI GESCH FOR HER
YEARS OF SERVICE ON THE MOUND CITY COUNCIL
7. Action to approve minutes from the November 9, 2016 Rescheduled Regular Meeting
MOTION by Salazar, seconded by Gillispie, to approve minutes from November 9, 2016
Rescheduled Regular Meeting. Salazar, Gillispie, Wegscheid, and Peterson voted in favor,
Gesch abstained. Motion carried.
8. Eric Hoversten, City Manager and Public Works Director, requesting action on a
resolution authorizing expenditure of public funds on a program to promote the
planting of trees on public and private property within the City of Mound
Hoversten indicated to the Council there were funds in the 2017 preliminary budget under
the Parks Dept. allowing the City to participate in tree planting programs, but the $7,000 has
been moved to the "Promotions" budget to reflect the discretionary nature of the program.
Hoversten said this is an initiative of the Parks Commission. Hoversten stated there are two
programs that are available for these funds; one, through Tree Trust, where the City would
cover a portion of the cost of a tree and a resident would cover the remaining portion and
then they would plant the tree on their property. This program would also include an
educational piece.
Hoversten said the second option is a program with a matching fund grant from the
Minnehaha Creek Watershed District (MCWD), where MCWD's funds could be combined
with either the City contribution or residents' contribution described in the first scenario.
Hoversten stated the Resolution before the Council authorizes the Parks Commission to
move forward in establishing a tree planting program in Mound. He stated this is an
important investment as Mound will need to prepare for the coming emerald ash borer
invasion. Hoversten said the tree planting program will allow the City to influence which
trees will be planted on private property.
Mayor Wegscheid asked if there are limitations as to how many trees each resident could
get. Hoversten said it would be limited to only one tree per resident and there would be
restrictions and stipulations on where they can be planted. Hoversten added the City can
manage the maintenance issues on what species could be selected. Hoversten said Mound
is currently low on the number of conifer trees in the city and it would behoove the City to
encourage the purchase of these types of trees as they are also low maintenance and do
not drop leaves.
Wegscheid asked about the duration of the program. Hoversten says this would be a
program for 2017 and the City would participate in this on a one time basis with the option to
come back again in future years.
Gillispie said she was confused on the timeline when it comes to beating the ash borer.
Hoversten says that with the rate that the ash borer is moving in the Metro area the City is
already behind on the replacement canopy for the lost ash trees. He added that the City will
need to be able to remove diseased ash and noted that the appropriate response is to take
all of the ash trees within a specified area around the diseased tree.
Mound City Council Minutes — December 13, 2016
Salazar asked about the need for site inspections, including: What would stop someone
from putting a tree in an incorrect location? What would stop someone from getting another
tree when they don't already maintain their current trees? Gesch stated that there is nothing
that would happen today if a tree was planted in her yard and that no one will come by and
inspect. Hoversten said the chances are low of someone not valuing the presence of a tree
in their yard who would also have to contribute some nominal amount for the tree, would
even participate in the program. Hoversten added that he supports residents having to pay
a portion of the cost.
MOTION by Gesch, seconded by Peterson, approving resolution. All voted in favor. Motion
carried.
NI ITWit,
"Wil
.•. U.14 LVE •
9. 2017 Final Budget and Levy Discussion/Approval
Catherine Pausche, Director of Finance and Administrative Services, presented the 2017
proposed budget. Pausche stated the City has maintained the proposed levy amount of a
negative 3% reduction in the general fund levy and lowered the overall proposed levy from
0.54% presented in the preliminary budget to a negative 1 % due to better than anticipated
interest rates on the 2017 bond issues.
Pausche said the truth in taxation meeting is an opportunity to talk about what factors affect
property taxes noting that the City portion is a small component of a resident's property
taxes. She added the property tax base in the City is made up of seventy-five percent off -
lake residential, twenty percent lakeshore residential, and the remaining five percent
commercial, industrial, apartments and duplexes. Pausche stated the residential tax base
from off -lake pays about 48% of the levy, lakeshore pays about 43%, with the 9% remainder
paid by the rest. Pausche said that each of the different property classes have a different
tax rate and cities with more commercial properties or higher median values generally have
lower tax rates than Mound.
Pausche says the City continues to watch trends regarding the general fund and over the
last many years the fluctuation in the general fund has been generally flat from 2009 to
present, although capital expenditures tend to fluctuate. Pausche stated that there are a lot
of things working in the City's favor such as low inflation, low fuel prices and the state
allowing the City to be exempt from most state sales taxes. Pausche feels the City is very
well positioned going forward, noting that the City tax base is rebounding since the
recession.
Pausche highlighted that the City's revenues and expenditures are flat and said that the City
is budgeted to use reserves of $151,000 in 2017. She added the City bond rating has
remained at AA Stable. Pausche noted that utility rates for water and sewer will increase
and stormwater, recycling and dock fees will be staying the same as 2016.
Mayor Wegscheid opened up for comments from the public and none were offered.
Mound City Council Minutes — December 13, 2016
Pausche noted that the Fee Schedule is being amended for 2016 to include the fees for fire
response in St. Bonifacius per the agreement. Pausche stated the City also added fees for
liquor licenses for brew pubs, distilleries, etc. in 2017.
A. Action on Resolution Amending Resolution 15-146 Approving Fee Schedule for
2016
MOTION by Salazar, seconded by Gesch, approving resolution. All voted in favor. Motion
carried.
• i1-1114 ;* Xei -VWVJ 1.
B. Action on Resolution Adopting Fee Schedule for 2017
MOTION by Gesch, seconded by Salazar, approving resolution. All voted in favor. Motion
carried.
RESOLUTION NO. 16-169: RESOLUTION ADOPTING FEE SCHEDULE FOR 2017
C. Action on a Resolution Approvinq a Levy not to Exceed $200,410 for the Purpose
of Defraying the Cost of Operation, Pursuant to the Provisions of MSA 469, of the
Housing and Redevelopment Authority of and for the City of Mound for the Year
2017
MOTION by Gesch, seconded by Salazar, approving resolution. All voted in favor. Motion
carried.
RESOLUTION NO. 16-170: RESOLUTION APPROVING A LEVY OF $200,41 FOR THE
PURPOSE OF DEFRAYING THE COST OF OPERATION PURSUANT TO THE
PROVISIONS OF MSA 469 OF THE HOUSING AND REDEVELOPMENT AUTHORITY
OF, AND FOR, THE CITY OF MOUND FOR THE YEAR 2017
la
Final Budget for 2017
MOTION by Gesch, seconded by Salazar, approving resolution. All voted in favor. Motion
carried.
• • a • • .• ,
i • • i • F
10. Discussion on City Manager Performance Evaluation and possible action on City
Manager Employment Agreement
Mayor Wegscheid stated that the City Manager performance evaluation has usually been
done in private and after the first of the year. He added that the Council takes input from
staff, Council, consultants and residents when completing the review. Wegscheid added the
Council has changed the review process by moving the review to the last quarter of the year
Mound City Council Minutes — December 13, 2016
to incorporate the comments of the outgoing council members. Wegscheid said that if the
review was done in the first part of year, the outgoing council members would not be able to
provide any input and the incoming council members would not have a firsthand look at the
work of the City Manager. Wegscheid stated he realizes this is an unconventional process
but noted the City Manager is ok with the approach.
Wegscheid said that when Hoversten first began as City Manager Wegscheid wanted to see
how Hoversten adjusted in the new role and noted a lot of change was occurring during this
time. Since this review process lacks measureable tools this first time, Wegscheid said he is
using non -tangible tools to base his review and said he is happy with Hoversten's
performance. Wegscheid stated Hoversten has great interaction with the residents and
accomplishes whatever needs to be done with the issues at hand and Wegscheid has heard
nothing but compliments from those who have interacted with Hoversten.
Gillispie said that Hoversten is a problem solver and resolves issues well and quickly.
Gillispie has heard only positive feedback and everyone, including staff and residents, is
happy with him and likes his communication skills.
Salazar stated that Hoversten eagerly accepted the position as City Manager and has
succeeded in performing those duties. Salazar said Hoversten demonstrates vast
knowledge and ability and never seems to be without an answer, noting that due to
Hoversten's engineering experience, sometimes his answers are detailed and lengthy,
which Salazar thinks is good. Salazar said Hoversten has never passed off an issue to
anyone else, and is very professional with staff, Council, and the public. Salazar thinks that
Hoversten loves his job and that is a very valuable trait and that Hoversten does an
outstanding job.
Gesch has been impressed with how quickly Hoversten knew the history of Mound and
demonstrates a strong concept of what's going on which makes it feels like he's always
been here. She praised Hoversten's transparency which shows his knowledge of what he's
doing. Gesch said that she has never received negative feedback about Hoversten in the
past year and has only heard positives both from staff and residents. Gesch said Hoversten
has a quick response to things and always has an answer and added that Hoversten helps
the Parks Commission talk through issues. Gesch summarized by saying that she only has
positive feedback about Hoversten's performance.
Peterson said she agrees with what has been said and noted that Hoversten has a great
synergy with City staff and this is something that was needed. Peterson stated staff is very
efficient and works well together. She added staff is responsive to the community and has
the confidence to do their jobs because of Hoversten's leadership.
Wegscheid said he agrees that Hoversten is building a good atmosphere with staff and that
staff has faith in Hoversten's judgment. Wegscheid said that everything is going well.
Wegscheid said the old agreement for the City Manager review and compensation was to
follow the administrative code cost of living adjustments and step increases automatically
and this new agreement does not. Wegscheid added this allows the Council to consciously
make a decision on compensation for performance in the previous year with the
administrative code to be used a guide. Wegscheid proposes a 4% annual increase to the
City Manager's salary.
Mound City Council Minutes — December 13, 2016
MOTION by Wegscheid, seconded by Gesch, to follow the administrative code and
employment agreement and recommend a 4% annual increase to the City Manager's
position salary. All voted in favor. Motion carried.
Hoversten thanked the Council and the City of Mound for the opportunity to serve the
community.
11. Information/Miscellaneous
A. Comments/reports from Council Members
B. Reports: Finance Dept - October 2016 YTD
C. Minutes: Planning Commission - October 18, 2016
November 15, 2016
D. Correspondence: Metropolitan Mosquito Control District - November, 2016
Mediacom - Notice of Rate Changes - December 2, 2016
Wegscheid read a letter that he received from Westonka School Superintendent Kevin Borg,
praising the Mound Fire Department.
Hoversten said the regularly scheduled Council meeting on Dec. 27 has been cancelled in
recognition of the Christmas holiday. He added the next Council session will be held on
January 10th and that meeting will establish the meeting schedule for the remainder of the
year.
Hoversten said the closure of the sale of Indian Knoll Manor (IKM) with Aeon is complete
and the project continues to progress with the contractor now making final permit
applications.
Wegscheid recognized Jeff Bergquist in was in attendance and will be replacing Heidi
Gesch on the Council.
12. Adjourn
MOTION by Gesch, seconded by Gillispie, to adjourn at 7:50 p.m. All voted in favor. Motion
carried.
Mayor Mark Wegscheid
Attest: Catherine Pausche, Clerk