City Council Meeting

CITY COUNCIL MEETING MINUTES Tuesday, September 20, 2022 at 7:00 PM Baxter City Hall, 13190 Memorywood Drive, Baxter, MN “A Growing Community” CALL TO ORDER Mayor Olson called the meeting to order at 7:00 p.m. ROLL CALL Mayor Darrel Olson and Council Members Connie Lyscio and Zach Tabatt were present. Council Members Mark Cross and John Ward (arrived at 7:42 p.m.) were absent. Assistant City Administrator Kelly Steele, Finance Director Jeremy Vacinek, Community Development Director Josh Doty, Police Chief Jim Exsted, and Public Works Director Trevor Walter were present. PLEDGE OF ALLEGIANCE All joined Mayor Olson in reciting the Pledge of Allegiance. PRESENTATIONS ADDITIONS OR CHANGES TO THE AGENDA Assistant City Administrator Steele explained Resolution 2022-078, agenda item 30, has been amended to include an additional condition requiring an escrow for tree plantings. PUBLIC COMMENTS - Comments received from the public may be placed on a future meeting agenda for consideration. Judy and Mark Zahn, 15410 Dellwood Dr, explained they live behind HART. When HART lets their dogs outside the dogs have been barking very loud and the sound can be heard from inside her home. HART has not been responding to their complaints of the loud dogs. Ms. Zahn has contacted the Baxter police department, but feels her calls are waiting police resources. Ms. Zahn is seeking a compromise with HART. CONSENT AGENDA - The following items are considered non-controversial by staff and are recommended to be read and passed in one motion. Any council person, staff, citizen, or meeting attendee can request one or more items be pulled from the Consent Agenda and the item will be pulled and addressed immediately after the passage of the Consent Agenda; otherwise, the following items will be passed in one motion: 1. Approve City Council Special Minutes from August 30, 2022 2. Approve City Council Work Session Minutes from September 6, 2022 3. Approve City Council Minutes from September 6, 2022 4. Approve City Council Special Minutes from September 8, 2022 5. Approve the Payment of Bills and Finance Report (Addendum A) 9/20/2022 City Council Meeting Minutes Page 2 6. Accept the Utilities Commission Minutes of September 7. 2022 7. Accept the Wings Financial Municipal Improvements as Outlined in the Development Agreement 8. Accept the Tri-Ven Municipal Improvements as Outlined in the Development Agreement 9. Approve the Menards, Inc. Development Agreement 10. Approve the Menards, Inc. Limited Use Agreement 11. Approve the Corner Lot Development Group Land VI, LLC Development Agreement 12. Approve the Corner Lot Development Group Land VI, LLC Stormwater Facilities Maintenance Agreement 13. Approve the Corner Lot Development Group Land VI, LLC Limited Use Agreement 14. Accept the Novotny Road and Edgewood Drive Traffic Impact Study 15. Approve the RL Larson Excavating, Inc. Change Order No. 3 in the increased amount of $1,732.50 for the 2022 Foley Road, Isle Drive, and Forthun Road Improvements Project, 16. Approve the RL Larson Excavating, Inc. Partial Pay Estimate No. 3 in the amount of $853,742.27 for the 2022 Foley Road, Isle Drive, and Forthun Road Improvements Project. 17. Approve ASTECH, inc. Pay Estimate No. 1 (Final) in the amount of $244,508.56 for the 2022 Micro Surfacing Project 18. Approve the Knife River Corporation North Central Final Pay Estimate No. 6 in the amount of $22,610.86 for the 2021 Mill & Overlay and Full Depth Reclamation Improvements Project. 19. Approve the Anderson Brother Construction Company Change Order No. 4 in the increased amount of $29,619.35 for the 2022 Full Depth Reclamation & Reconstruction Improvements Project. 20. Approve the Anderson Brother Construction Company Partial Pay Estimate No. 4 in the amount of $34,317.17 for the 2022 Full Depth Reclamation & Reconstruction Improvements Project. 21. Approve the Burski Excavating , Inc. Change Order No. 2 in the increased amount of $7,584.09 and increase the project budget from $185,238.31 to $203,181.52 for the Section 6 Area A-1 Stormwater Outlet Project. 22. Approve 20-Year Maintenance Plan Update (2022 – 2042) for Sanitary Sewer and Stormwater Lift Stations 23. Approve the Revised Engineering Inspector Job Description 24. Appoint Robert Bray to the position of Parks and Trails Maintenance at Grade 3, Step 4 of the AFSCME Pay Grade and Step Schedule 25. Set the Public Information Meeting to Review the 2023 Budget and Levy with Public Testimony for Monday, December 5, 2022 at 6:00 p.m. 26. Renew the Sourcewell Health Partners Health Insurance Contract for 2023 and Authorize Contract Execution 9/20/2022 City Council Meeting Minutes Page 3 27. Approve Third Amendment to Lease Agreement with Sprint Spectrum Realty Company, LLC for Property at 15042 Inglewood Drive 28. Adopt Resolution 2022-080, Providing for the Competitive Negotiated Sale of $5,100,000 General Obligation Improvement Bonds, Series 2022 29. Accept the Planning and Zoning Commission Meeting Minutes from September 13, 2022 30. Adopt Resolution 2022-078 approving a Conditional Use Permit for Atwater Motors to operate a dealership located at 14775 Edgewood Drive 31. Adopt Resolution 2022-077 approving a Preliminary and Final Plat to allow “Austin Acres Second Addition” 32. Adopt Resolution 2022-079 approving a Conditional Use Permit for grading and filling in a shoreland overlay district for property located at 13152 Timberlane Drive (City file 2022-36) 33. Adopt Resolutions 2022-075 and 2022-076 and Ordinances 2022-014 and 2022-015 approving “The Lofts at Novotny” MOTION by Council Member Tabatt, seconded by Council Member Lyscio to approve the consent agenda as amended. Motion carried unanimously. PULLED AGENDA ITEMS OTHER BUSINESS 34. 2023 Preliminary Property Tax Levy and Budget Discussion - Adopt Resolution 2022-081 Setting the Preliminary 2023 Property Tax Levy at $8,504,500 - Adopt Resolution 2022-082 Approving the Preliminary 2023 Governmental Funds Budget Finance Director Vacinek explained city staff, under the direction of the council, has prepared the 2023 proposed budget and property tax levy for council’s approval. Tonight, the council can present additional adjustments to the preliminary budget and levy. If additional discussion is necessary, a special council meeting should be called prior to September 30, the deadline to submit the preliminary levy and now required budget information to Crow Wing County. Once the council adopts the preliminary levy, it cannot be increased. The council will review the enterprise fund operating budgets in November. Based on very preliminary figures supplied by Crow Wing County, the city’s estimated tax capacity is projected to increase from $13.45 million to $16.08 million. The estimated 19.5% increase in the city’s tax capacity or tax base is primarily due to the significant estimated market value increase in the existing residential classification. Adjustments have been made to reduce the preliminary levy by $150,000. This reduction results in a revised 2023 preliminary levy of $8,504,500, a $765,500 increase or 9.9% overall increase, down from an initial 11.8% increase. Based upon the preliminary tax capacity figures supplied by the county, the estimated tax capacity rate would be about 52.885%. Due to the significant 32.20% average increase in existing residential valuations, the tax burden is shifting from the 9/20/2022 City Council Meeting Minutes Page 4 commercial/industrial classifications to residential. The shift is intensified by the Legislature’s failure to update the homestead market value exclusion limits this past legislative session. The council discussed delaying public works equipment, specifically the grader, and future impacts of the delay. The council also discussed two council members are absent and their input is needed to continue discussions. MOTION by Council Member Lyscio to adopt the preliminary levy at 9.9%. Finance Director Vacinek asked for clarification if the motion is to adopt Resolution 2022-081, Setting the Preliminary 2023 Property Tax Levy at $8,504,500. Council Member Lyscio clarified her motion is to adopt Resolution 2022-081, Setting the Preliminary 2023 Property Tax Levy at $8,504,500, seconded by Council Member Tabatt. Motion unanimously carried. MOTION by Council Member Tabatt, seconded by Council Member Lyscio to adopt Resolution 2022- 082, Approving the Preliminary 2023 Governmental Funds Budget. Motion unanimously carried. 35. Vacate easements on Lots 1 & 2, Block 1, Austin Acres 1) PUBLIC HEARING at 7:00 p.m. or shortly thereafter 2) Adopt Resolution 2022-083 Vacating Easements on Lots 2 & 3, Block 1, Austin Acres Community Development Director Doty explained the applicant has submitted an application to plat the two subject properties into one lot to be known as Austin Acres Second Addition. As a result of the plat application, the applicant needs to vacate all existing easements to clear the property of encumbrances. New easements will be dedicated with the plat. Mayor Olson opened the public hearing at 7:15 p.m. and closed the hearing at 7:15:15 p.m. after hearing no public comments. MOTION by Council Member Lyscio, seconded by Council Member Tabatt to Adopt Resolution 2022- 083, Vacating Easements on Lots 2 & 3, Block 1, Austin Acres. Motion unanimously carried. COUNCIL COMMENTS 36. Connie Lyscio – Visited with a new Baxter resident that had great things to say about the city. 37. Zach Tabatt – Inquired about the 20 unit per acre maximum density in relation to the proposed development and what maximum would be right for the situation. Would like to have a discussion on this topic in the future. 38. John Ward – Apologized for arriving late. 39. Mark Cross – Absent. 40. Darrel Olson – Explained he attended the Planning and Zoning Commission meeting and the development group, Corner Lot, expressed their appreciation for city staff in working on their development project. 9/20/2022 City Council Meeting Minutes Page 5 CITY ADMINISTRATOR'S REPORT No report. CITY ATTORNEY'S REPORT No report. ADJOURN MOTION Council Member Tabatt, seconded by Council Member Lyscio to adjourn at 7:46 p.m. Motion unanimously carried. Approved by: Respectfully submitted, _____________________________ Darrel Olson Kelly Steele Mayor Assistant City Administrator