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2020-09-08 CC Meeting MinutesMOUND CITY COUNCIL MINUTES September 8, 2020 The City Council of the City of Mound, Hennepin County, Minnesota, met in regular session on Tuesday, September 8, 2020 at 7:00 p.m. in the Westonka Schools Performing Arts Center in Minnetrista. Members present: Mayor Ray Salazar; Council members Phil Velsor, Jeff Bergquist, Paula Larson, and Sherrie Pugh Members absent: None Others present: City Manager Eric Hoversten, Fin Dir/Clerk/Treasurer Catherine Pausche, City Engineer Brian Simmons, Nicole Spiess, Kelli Gillispie-Coen, Ashley Jahnke, Eric Jahnke 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 7:02 p.m. 2. Pledge of Allegiance 3. Approve agenda MOTION by Bergquist, seconded by Pugh, to approve the agenda. All voted in favor. Motion carried. 4. Consent agenda MOTION by Bergquist, seconded by Pugh, to approve the consent agenda. Upon roll call vote, all voted in favor. Motion carried. A. Approve payment of claims in the amount of $563,839.94. B. Approve minutes: 08-25-20 regular meeting. C. Cancel October 20, 2020 Special Meeting Workshop D. RESOLUTION NO. 20-79: RESOLUTION APPROVING A FRONT AND SIDE YARD SETBACK VARIANCE FOR 5381 BAYWOOD SHORES DRIVE (PLANNING CASE NO. 20-16) E. Approve Miscellaneous Project -related Pay Items in the total amount of $4021.29 for the 2019 Street and Utility Improvement Project (PW -19-01) and 2019 Retaining Wall Project (PW -19-10) 5. Comments and suggestions from citizens present on any item not on the agenda. None were offered. Mound City Council Minutes — September 8, 2020 6. City Mana er and Director of Public Works Eric Hoversten re uestin action on a Resolution to authorize Mayor and City Manager to enter into a contract agreement for manhole inspection services Hoversten said contracting with Bolton & Menk (BMI) for manhole inspections is a process improvement for our current method of investigating/assessing manholes. Hoversten said Three Points and Island Park were performed by a third party with BMI supervising and taking the results of the study to come up with project specifications to prepare request for quotes. Hoversten said this takes some hands out of the kitchen and letting BMI do the assessment will reduce soft costs for oversight. BMI has developed the capability to do this in house and when compared to soft costs and third party rates, will result in savings overall. BMI will also supply video of the manholes which is new information. Hoversten asked the Council to approve the contract with a not to exceed of $15,280. MOTION by Bergquist, seconded by Velsor, to adopt the following resolution. All voted in favor. Motion carried. RESOLUTION NO. 20-80: RESOLUTION TO AUTHORIZE MAYOR AND CITY MANAGER TO ENTER INTO A CONTRACT AGREEMENT FOR MANHOLE INSPECTION SERVICES 7. City Enclineer Brian Simmons presenting final construction costs for 2019 Street and Utility Improvement Pro'ect Sherwood Drive PW -19-01 for discussion and actions: Simmons said this is the next step in the Chapter 429 process for special assessments which is determining the final costs and setting the date of the assessment hearing, noting the original estimate for special assessment in December 2018 was $2159.26 per ERU and the final is $2261.05 per ERU (Equivalent Residential Unit). Bergquist asked if the original estimate included the targeted patching. Simmons said the watermain was replaced and the residents benefited from that portion of the street improvement being funded by the city and utility funds. MOTION by Larson, seconded by Pugh, to adopt the following resolution. All voted in favor. Motion carried. A. RESOLUTION NO. 20-81: RESOLUTION DECLARING COST TO BEASSESSED, AND ORDERING PREPARATION OF PROPOSED ASSESSMENT ON 2019 STREET, UTILITY AND RETAINING WALL IMPROVEMENT PROJECT — SHERWOOD DRIVE, CITY PROJECT NO. PW -19-01 MOTION by Bergquist, seconded by Velsor, to adopt the following resolution. All voted in favor. Motion carried. B. RESOLUTION NO. 20-82: RESOLUTION FOR HEARING ON PROPOSED ASSESSMENT FOR 2019 STREET, UTILITY AND RETAINING WALL IMPROVEMENT PROJECT — SHERWOOD DRIVE — PW -19-01 8. Director of Finance and Administration Catherine Pausche with an overview of the 2021 Prelimina Budget and Levy and requesting action on the following: Pausche presented an overview of the proposed 2021 preliminary budget, levy, and utility rate information. Pausche said that the City is required to pass a preliminary budget and levy each Mound City Council Minutes — September 8, 2020 year by September so it can be certified to the County Auditor who then uses this information to prepare the estimated tax statements that are sent to residents in November. Pausche noted the in-depth discussion at the August 25th meeting on the Capital Improvement Program and Long Term Financial Plan and summarized the investments in infrastructure and the creation of capital reserve funds to reduce future reliance on debt and special assessments. Pausche showed slides of the breakdown in types of revenue, including property taxes, utility rates and other, and expenses, including operating, capital and debt service, noting over half the expenditures city wide are for capital and debt service. Pausche showed graphs of changes to the tax levy and utility bills and noted in 2018, a Long Term Plan was established that would attempt to create a more sustainable and less volatile revenue profile. Pausche showed a graph that indicates over 95% of the property tax parcels are residential and that 22% are on the lake and pay 43% of the tax levy and 74% are non-lakeshore and pay 45% of the tax levy. Pausche showed comparisons with peer group cities that show although Mound has more debt and taxes because of the infrastructure investments, its operating expenses are lower. Pausche showed a graph indicating that because the majority of parcels are residential, the utility bills fall largely within the 6 — 20K gallons a quarter, so it requires that every parcel contribute to the cost of the underlying infrastructure, compared to communities whom either use septic and well or communities with large industrial complexes. Pausche summarized the trade-offs between a 5% levy increase over the next 10 years and a 3.5% levy increase, including minimal difference in the tax rate, but significantly more funds for capital reserves that reduces our reliance on debt from $9.6M compared to $13.83M, assuming the current assumptions in the CIP. Pausche noted the general fund is budgeted to use $394K in reserves in 2021 and an additional 8% levy increase would be needed to eliminate that. Pausche also noted that the utility funds have large cash deficits that capital and debt service funds currently offset, and that it is one of the reasons for issuing bonds, which is also on tonight's agenda. A. Discussion on unique budget requests — Cemetery & Pumper Truck Pausche noted the memo provided by the Fire Chief that describes the 1995 Engine Pumper compared to the 2021 proposed replacement, noting it would become the first out pumper with a design that contributes to versatility. Pausche noted the Fire Commission did approve the purchase at its meeting in July and the Fire Department has a thorough long term financial plan to address equipment replacement timing. Pausche described the status of the cemetery, noting sections A — C have sold out and only section D, which has not been surveyed for plots, remains. Pausche said section D is smaller and a prior quote for a survey exceed $1 OK, as she recalls. Pausche said she sought options to increase the capacity of the area that remains, and would like the Council to discuss next steps. Pausche said $40K is in the budget for landscaping improvements and potential plaza installation that would provide the foundation for future Columbarium. Pausche described the vertical granite Columbarium that have individual niches for ash remains. Pausche said the majority of interments in recent years have been cremated remains. Bergquist asked if the public has been surveyed to see what they prefer. Hoversten said we do not know what the residents prefer specifically, but noted the ability to create sustainable maintenance and operating costs is easier with Columbarium vs in -ground. Pausche noted it provides a cheaper overall cost to the family as there are significant excavation costs with in- Mound City Council Minutes — September 8, 2020 ground. Pausche said she did not include the current rate structure but can do so for a future meeting. Bergquist stated he would like to know a rough idea how many whole and 1/2s plots can fit in Section D if surveyed. Pugh said she would like to see data on the trends of cremation vs burials. Mayor Salazar proposed that the topic be tabled to a future meeting to give the Council time to walk the grounds and reach out to constituents to see what is desirable. The following formal actions on the budget and levy resolutions were made. MOTION made by Bergquist, seconded by Larson, to approve the following resolution. All voted in favor. Motion carried. B. RESOLUTION NO. 20-83: RESOLUTION APPROVING A LEVY NOT TO EXCEED $248,555 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 2021 MOTION made by Larson, seconded by Velsor, to approve the following resolution. All voted in favor. Motion carried. C. RESOLUTION NO. 20-84: RESOLUTION AUTHORIZING CHANGES TO DEBT SERVICE LEVY SCHEDULES AND TO APPROPRIATE FUNDS IN THE DEBT SERVICE FUND FOR BOND SERIES 2011B, 2018A & 2020A MOTION made by Bergquist, seconded by Larson, to approve the following resolution. All voted in favor. Motion carried. D. RESOLUTION NO. 20-85: RESOLUTION APPROVING THE 2019 PRELIMINARY GENERAL FUND BUDGET IN THE AMOUNT OF $5,756,287; SETTING THE PRELIMINARY LEVY AT $6,291,072; AND APPROVING THE PRELIMINARY OVERALL BUDGET FOR 2021 MOTION made by Bergquist, seconded by Larson, to approve the following resolution. All voted in favor. Motion carried. E. RESOLUTION NO. 20-86: RESOLUTION PROVIDING FOR THE SALE OF $8,915,000 GENERAL OBLIGATION BONDS, SERIES 2020A ($4,335,000 INFRASTRUCTURE, $615,000 FIRE TRUCK, $3,965,000 2011B REFUNDING FOR INTEREST SAVINGS) F. Mayor Salazar announced the 2021 Final Budget and Levy discussions and decisions will take place at the Dec. 8, 2020 Regular Meeting, at 7:00 pm, in the Council Chambers. Public comments will be taken at this meeting. Comments or questions on the 2021 Budget and Levy can be directed to the Finance Director at 952-472-0633 4 Mound City Council Minutes — September 8, 2020 9. Information/Miscellaneous Hoversten said Staff have evaluated the welcome sign on the east side of Mound and it needs to be dealt with. Hoversten said something similar to Mound Harbor precast/bollards/casting would cost about $15K with $15 — 20K in site prep landscaping and electrical. Hoversten suggested maintaining the community organization emblems on a separate sign. Hoversten said any improvements would be paid for with community investment reserve funds. Salazar noted the City of Tonka Bay's nice signage and said the goal would be to have it high enough quality to be minimal maintenance compared to the current wood. Salazar said they used to light up the tree behind the current sign but it has been determined to be unsafe due to the electrical poles in the area. Salazar took a friendly poll that indicated willingness to have Staff bring back more detailed information on sign options. A. Comments/reports from Council members/City Manager: B. Reports: Finance Department — July 2020 Liquor Store — August 2020 C. Minutes: Planning Commission 4/7/20, 7/7/20, 7/21/20 D. Correspondence: 9. Adiourn MOTION by Pugh, seconded by Bergquist, to adjourn at 8:30 p.m. All voted in favor. Motion carried. Mayor Raymond J. Salazar Attest: Catherine Pausche, Clerk