City Council

MAHTOMEDI CITY COUNCIL MINUTES DECEMBER 6, 2016 Mayor Jud Marshall convened the regular City Council meeting at 7:00 p.m. with Council members Timothy Deans, Joel Schilling, Richard Brainerd and Lael Ramaley in attendance. City Administrator Scott Neilson, City Attorney Jay Karlovich, City Engineer Chris LaBounty, Finance Director Scott Schaefer, Fire Chief Terry Fischer, Public Works Director Bruce Thielen and City Clerk Mary Solie were also in attendance. CONSIDER APPROVAL OF AGENDA Item 6j. Tolling Agreement with the Environmental Protection Agency was added and item 6g. will be pulled and voted on separately. Council member Schilling moved and Council member Deans seconded the motion to approve the agenda as amended. The motion was unanimously approved. CONSIDER APPROVAL OF CITY COUNCIL MEETING MINUTES Council member Ramaley moved and Council member Brainerd seconded the motion to approve the minutes as presented. The motion was unanimously approved. 4. PRESENTATIONS a. 10 Year Service Award – Brian Randt Mayor Jud Marshall presented Brian Randt with a 10 year service award and thanked him for his years of service to the City. 5. DISCUSSION FROM THE AUDIENCE Jeff Kolstad was present to speak about his involvement with the Citizens Climate Lobby group. 6. CONSENT AGENDA Consent Item 6j. Tolling Agreement with the Environmental Protection Agency was added and item 6g. was pulled and voted on separately. Council member Schilling moved and Council member Brainerd seconded the motion to approve Consent Agenda items a-f and h-j as presented. Council member Ramaley moved and Council member Deans seconded the motion to approve Consent agenda item 6g, with Council member Brainerd abstaining. The motion was unanimously approved. CITY COUNCIL MEETING MINUTES -2- DECEMBER 6, 2016 6. CONSENT AGENDA-Continued. a. APPROVAL-Close City Offices on December 15, 2016 from 12:00 p.m. to 2:00 p.m. for Employee Holiday Lunch. City staff requested and received permission to close City Hall on December 15, 2016 from 12:00 p.m. to 2:00 p.m. for the Employee Holiday Lunch. b. APPROVAL-Resolution Regarding the Sufficiency of a Petition for a Local Improvement Project on Ideal Avenue South Related to the Extension of Utilities. On November 16, 2016, the property owners of 157 and 191 Ideal Avenue South submitted a petition to the City for a public improvement project providing for the extension of water and sanitary sewer. The petition has been signed by the required percentage. The Resolution was approved. c. APPROVAL – Change Order for Wedgewood Park Infiltration BMP Project. A construction change order in the amount of $2,132.00 for the Wedgewood Park Infiltration BMP Project was approved. d. APPROVAL-Construction Pay Voucher No. 5 and Final for Wedgewood Park Infiltration BMP Project. A Construction Pay Voucher No. 5 and Final in the amount of $5,665.40 for the Wedgewood Park Infiltration BMP Project for Belair Sitework Services was approved. e. APPROVAL-Request Authorization to Receive Quotes for Neptune/Maple Sidewalk Improvements. At the March 2, 2016 City Council Meeting, the Council reviewed the potential to construct pedestrian improvements near the intersection of Mahtomedi Avenue and Neptune Street. These include a marked crosswalk from Neptune Street to the newly constructed streetcar trail. City staff received authorization to receive quotes for the project. f. APPROVAL-Agreement for Law Enforcement Services. The agreement with the Washington County Sheriff’s Office for Law Enforcement Services for 2017, was approved. The increased budget amount for the contract is 2.09%. CITY COUNCIL MEETING MINUTES -3- DECEMBER 6, 2016 6. CONSENT AGENDA-Continued. g. APPROVAL-2016 Employee Health Insurance Plan. City staff received approval from the City Council to establish its 2017 Health Insurance Plan for Non-Union Personnel with Health Partners. h. APPROVAL-Resolution committing General Fund Balance for funding of incomplete construction projects. The resolution committing General Fund balance for incomplete construction projects was approved. These projects consist of interim construction fund projects that remain open. i. APPROVAL-Resolution committing General Fund Balance for funds above the level approved in the Fund Balance Policy for Street Improvements. The resolution committing General Fund for funds above the level approved in the Fund Balance Policy for Street Improvements was approved. The Fund Balance Policy established a maximum fund balance percentage of 65% of unassigned funds in the General Fund. The funds to be committed will be amounts that exceed the 65% maximum. The amount will be determined by the annual audit. The funds will be committed at this time for fiscal year ending 12/31/2016, with a corresponding transfer resolution sometime in 2017 to the Street Improvement Fund with Council approval. j. APPROVAL-Tolling Agreement with the Environmental Protection Agency. The Tolling Agreement with the Environmental Protection Agency was approved. 7. PUBLIC HEARINGS 7a. 2017 City Budget Hearing – Receive 2017 Budget Presentation. CONSIDER APPROVAL-2017 Annual City Budget, 2017-2021 Capital Improvement Plan, Resolution Approving Proposed Tax Levy for 2017 and Cancellation of Debt Levy in the amount of $1,205,491 for taxes payable in 2017. City Administrator Scott Neilson said the annual City budget hearing process requires that the budget be considered at a public hearing. The City Council certified a proposed City property tax levy to Washington County on September 30, 2016. CITY COUNCIL MEETING MINUTES -4- DECEMBER 6, 2016 7a. Continued. Finance Director Scott Schaefer said the proposed General Fund Budget is $5,491,389. This total includes the debt service transfer of $1,205,491. This results in a City levy of $4,116,147 - $259,286 (fiscal disparities) = $3,856,861. Using the local levy amount divided by the City’s local taxable value of $10,292,262 results in a City local tax rate of 37.473%.In 2017, the City’s share of taxes on a home valued at $250,000 will be $881.74. This assumes that the home had a market value of $259,600 for 2016 and a 3.7% decrease in market value for 2017. This results in a $30.22 increase or 3.5%. In addition to the General Fund, the City also considers annual budgets for its Utility Funds, Park Fund and Equipment Replacement Fund. The proposed budgets are: Water Fund (10.29% increase) $1,226,003 Sewer Fund (2.51% increase) $1,162,517 Storm Water (27.21% increase) $ 352,510 Equipment and Building Replacement $ 230,000 Park Fund $ 205,000 Utility rates will be increased in 2017 in the Water, Sewer and Storm Water Funds. These increases are needed to support necessary capital improvements and repairs required to the systems. The revenue increases are: Water 10% Sewer 8% Storm Water 10% The five year (2017-2021) Capital Improvement Plan has $19,013,100 in planned improvements. The impact of moving the Bevins Lane Improvement Project from 2018 to 2017 is as follows: Increased costs for bond issuance over a combined issue in 2018 of approximately $40,000, property tax rate projection for 2018 would go from 37.325% to 37.684% or an increase of 0.359%. In 2018 the Water and Sewer fund will have projected decreases in Fund balance of $20,000 & $50,000. Mayor Marshall opened the public hearing at 7:40 p.m. Joe Bevins, 170 Bevins Lane, asked if his system is non-compliant what his next steps are. CITY COUNCIL MEETING MINUTES -5- DECEMBER 6, 2016 7a. Continued. Marv Holstrom, 195 Bevins, said his is failing too and asked what his next steps are. Engineer LaBounty said unless it’s an imminent health rick, there is flexibility to work with the County to extend the time to have it brought into compliance. Mayor Marshall closed the public hearing at 7:50 p.m. Council member Brainerd asked if it hurts or helps the city financials to move the Bevins project to 2017. Finance Director Schaefer said it accelerates the water and sewer rates. It would save at least $40,000 if the project waits until 2018, because the City bonds every other year for projects and it would be included in the bonding package. There was consensus to review all of the upcoming utility projects with the Finance Commission in early 2017. Council member Schilling commented that he had said at the Public Hearing in November for the Capital Improvement Project, to have just a roads only project in the Briarwood neighborhood, but now sees the need for further discussion for all the utility projects. Council member Brainerd commented the Budget is extensively reviewed each year. Council member Schilling moved and Council member Deans seconded the motion to approve Resolution No. 2016-63 Approval of Final Tax Levy for 2017 and Cancellation of Debt Levy in the Amount of $1,205,491 for 2017. The motion was approved Council member Schilling moved and Council member Brainerd seconded the motion to approve Resolution No. 2016-62 Approval of the Proposed 2017 Annual Budget. The motion was approved. 7b. CONSIDER APPROVAL – Ordinance Adopting an Annual Fee Schedule Pursuant to Minnesota Statutes, Section 462.353, Subd. 4A. Finance Director Schaefer said the proposed changes for the 2017 Fee Schedule are as follows: • Ambulance transport rates were increased. • Increase in City Equipment Rental Rates. CITY COUNCIL MEETING MINUTES -6- DECEMBER 6, 2016 7b. Continued. • Increase in the Utility Rates and included in the 2017 Utility Fund Budgets. • Water Meter and Accessory prices were updated for 2017. • Addition of a City Facility Rental fee for City Hall. • Increase in damage deposits for City Facility rentals. Mayor Marshall opened the public hearing at 8:00 p.m. There was no public comment and the public hearing was closed. Council member Brainerd moved and Council member Deans seconded the motion to approve Ordinance No. 2016-08 Adopting the Annual Fee Schedule. The motion was approved. 7c. CONSIDER APPROVAL – Resolution Ordering Public Improvement Project 2017-01, 2017 Street Improvement Project, Authorizing Preparation of Final Plans and Specifications, Authorizing the Advertisement for Bids, and Authorizing Preparation of Preliminary Proposed Assessment Roll for Pending Assessment Purposes. City Engineer LaBounty said on October 18, 2016, the City Council passed a Resolution which received the feasibility study recommendations of the City’s consultant City Engineer and called for a public improvement hearing for Project 2017-01, 2017 Street Improvement Project which includes the following roadways: Hickory Street and Dahlia Street The City noticed a public hearing on Project 2017-01, 2017 Street Improvement Project for December 6, 2016. A notice of public hearing was published by the City’s Official Newspaper on November 16, 2016 and November 23, 2016, and was mailed to affected property owners on or about November 16, 2016, pursuant to Minnesota Statute 429.031. Subd. 1 (a). The proposed improvements for the 2017 Street Improvement Project include storm sewer improvements, isolated watermain replacements, isolated subgrade corrections, pavement reclamation with a new bituminous roadway surface, and new concrete curb and gutter and sidewalk improvements along Hickory Street. The total estimated project cost is $697,000 which includes a 10% contingency and 28% indirect for legal, engineering, administrative and financing. Funding sources include CITY COUNCIL MEETING MINUTES -7- DECEMBER 6, 2016 7c. Continued. State Aid Funds of $373,600, Water Utility Funds of $ 44,100, Storm Sewer Utility Funds of $102,500 and Special Assessments of $176,800. The assessment rates for complete reconstruction are $5,200 per unit, corner lots receiving a ½ unit are $2,600. The commercial rate is $76.47/foot. Council member Schilling asked if the grade separation along Warner Avenue can be fixed. Engineer LaBounty said they have looked at it and should be able to reduce some of it. Mayor Marshall opened the public hearing at 8:30 p.m. Rick Copeland, from Copeland Dentistry, asked when he could see the drawing for the sidewalk. Mr. Wigstrom, 115 Dahlia, asked if there are any other parking options on Dahlia. Asked where people will park when someone has an event at their house. Jen Cleveland, 139 Dahlia, said to look at her water issue and how it moves to the back of her property. She doesn’t think a temporary solution is a good option. Lynette Wiegel, 134 Dahlia, asked where the water is draining to and how fast will it drain. Sandra Wuori, 135 Dahlia, said that no parking on Dahlia is not a good idea. Mayor Marshall closed the public hearing at 8:35 p.m. Engineer LaBounty answered the questions asked during the public hearing. He said another open house will be held once the design is finished sometime in early 2017. As far as the parking on Dahlia, one option could be to have parking on one side of the road or increase the road width by six feet to have parking on both sides. The water issue will be looked at carefully and they will work diligently with the property owners to find a solution that works for everyone. Council member Ramaley suggested making Dahlia a one-way like Grove Street with parking on one side. Council member Ramaley moved and Council member Schillng seconded the motion to approve Resolution No. 2016-59 Ordering Public Improvement Project 2017-01, Authorizing Prep of Final Plan and Specifications, Authorizing Advertisement of Bids CITY COUNCIL MEETING MINUTES -8- DECEMBER 6, 2016 7c, Continued. and Authorizing Prep of Proposed Preliminary Assessment Roll. The motion was approved. 8. STAFF REPORTS 8a. DISCUSSION-Update on Pedestrian Improvements Along CSAH 12. City Enginner LaBounty said on February 2, 2016, the City of Mahtomedi entered into a cooperative agreement with Washington County to complete mill and overlay and pedestrian improvements on Stillwater Road (CSAH 12) from MNDOT Trunk Highway 244 to Wildwood Road. The proposed improvements include widening the existing sidewalk on the south side of the roadway and improving ADA accessibility in the area. Discussions were held between Washington County and the adjacent property owners earlier this year. City staff is seeking any feedback to finalize the bid documents for final City, County, and MnDOT approval. Construction is expected to begin in Spring/Summer of 2017. Council member Deans asked who would be responsible for snow removal on the new sidewalk. Engineer LaBounty said Washington County is responsible for the street and the City of Mahtomedi is responsible for the sidewalk. Council member Brainerd asked how wide Stillwater Road will be and where will bikes go. He also asked about the Triangle Park parking lot. Engineer LaBounty said there will be two 11 foot drive lanes and 10 foot parking lanes. He said the bikes can go either on the road or sidewalk. He said they are reviewing the parking lot project to determine the best way to improve it. Council member Ramaley asked how long the project will take. Becky Hayden with Washington County, said they give the project contractor a timeframe for completion and it usually works pretty well. 8b. CONSIDER APPROVAL-Bill List Council member Ramaley moved and Council member Deans seconded the motion to approve the bills as presented. The motion was unanimously approved. CITY COUNCIL MEETING MINUTES -9- DECEMBER 6, 2016 9. REPORT FROM THE CITY ADMINISTRATOR Administrator Neilson said the Piccadilly Square open house is Thursday, December 15th at noon. He said the City applied for a Partners in Energy Grant and were notified they were awarded the grant. 10. COMMENTS FROM THE CITY COUNCIL Council member Ramaley said the evaluation form for Administrator Neilson’s review will be sent out and to please return it by January 9, 2017. The review will be discussed at the January 17th Council meeting. Council member Deans said Chuck and Don’s will be having a Grand Re-opening on December 7th. Council members Brainerd and Ramaley said they will both be absent from the January 3, 2017 City Council meeting. 11. CLOSED SESSION – None Scheduled 12. ADJOURNMENT Council member Brainerd moved and Council member Deans seconded the motion to adjourn the meeting at 9:25 p.m. The motion was unanimously approved. ATTESTED: APPROVED: ___________________________ ___________________________ MARY SOLIE, CITY CLERK JUD MARSHALL, MAYOR