City Council

Owatonna City Council Minutes The Owatonna City Council met in regular session on Tuesday, October 15, 2019 at 7:00 p.m. in Council Chambers. Council President Schultz called the meeting to order and welcomed everyone in attendance. Attending were Council Members Voss, Okerberg, Dotson, Burbank, Raney, Svenby and Schultz. Also attending were Mayor Kuntz, City Attorney Walbran; Community Development Director/Interim Parks and Recreation Director Klecker; Assistant City Engineer Pekuri, Human Resource Director Gorski, City Administrator Busse and Administrative Specialist Clawson. Following the Pledge of Allegiance, Council Member Dotson made a motion to approve the Agenda as presented, Council Member Svenby seconded the motion and all members voted aye in approval. Council President explained the procedure to conduct seven public hearings planned during this meeting. City Administrator Busse advised Mankato Lutheran Homes, Inc. has requested the City issue tax-exempt revenue obligations in the maximum principal amount of $8,000,000 to finance a senior living center. This would cover a portion of the costs to acquire, construct and equip 56 senior independent living units and 24 memory units at 115 Rogers Street in Mankato. The City of Eagle Lake will also issue similar financing for $10,000,000 towards this project. The notes issued will constitute a special, limited obligation of the City payable solely from the revenues expressly pledged to the payment thereof, will not constitute a general or moral obligation of the City and will not be secured by the taxing power of the City or any assets of or property of the City except interest in this project that may be granted to the City in conjunction with the financing. The City will receive a fee equivalent to 2% of the note issued. Megan McCarthy, Attorney at Kennedy- Graven was introduced to answer questions, No comments or questions were made; at 7:03 p.m., a public hearing was opened. With no comments received, at 7:04 p.m. Council Member Raney made a motion to close the public hearing. Council Member Burbank seconded the motion and all members voted aye in approval. Council Member Okerberg made a motion to approve Resolution 96-19 approving issuance of the note and a housing program prepared for this project in accordance with Minnesota Statues, Chapter 462C. Council Member Dotson seconded the motion; all members voted aye in approval. City Administrator Busse introduced Toni VanEsch, Customer Service Supervisor at Owatonna Public Utilities. Ms. VanEsch advised collection of eight customer accounts delinquent more than 90 days have been proposed for assessment. At 7:06 p.m., a public hearing was opened for comments on these proposed assessments. With no comments heard, Council Member Raney made a motion to close the public hearing, Council Member Svenby seconded the motion, all members voted aye in approval. Council Member Svenby made a motion to approve Resolution 97-19 adopting these assessments for unpaid charges. The total amount of assessments to be collected is $13,119.83 over a one-year period if the assessment is less than $1,000 or extending the collection over three years if the amount of the assessment is more than $1,000. Interest will be charged from the date of adoption at a rate of 4% per annuum. Council Member Okerberg seconded the motion, all members voted aye for approval. Assistant City Engineer Pekuri advised the declared costs of improvement of the 2018 Street & Utility Project were $183,431.28 with $76,439.60 proposed for assessment. This project was on Caleta Place and Mill Street between Cedar Avenue and Oak Avenue. At 7:09 p.m. a public City Council Minutes October 15, 2019 Page 2 of 6 hearing was opened for comments on these proposed assessments. With no comments heard, Council Member Dotson made a motion to close the public hearing, Council Member Burbank seconded the motion; all members voted aye for approval. Council Member Dotson made a motion to approve Resolution 98-19 adopting the proposed assessments for the 2018 Street & Utility Project payable over a 10-year period with an annual interest rate of 4.5%. Council Member Burbank seconded the motion, all members voted aye in approval. Council President Schultz recused himself as he owns property within the 2018 Downtown Parking Lot and Alley Project. Council Member Raney took charge of the meeting as Assistant City Engineer Pekuri advised the declared costs of this project is $451,505.48 of which $43,134.00 has been proposed as assessments. The project repaired the alley south of Vine Street between Cedar Avenue and Oak Avenue. At 7:09 p.m., a public hearing was opened for comments. Jerry Besser, owner of property at 114 N Cedar stated this project left wide surface cracks near his building allowing water to run toward his building; he will pay his proposed assessment after additional repair is made. Mr. Besser then requested Council review the City’s Assessment Policy; currently, property owners adjacent to a street repair are charged assessments but he believes all residents use the streets and everyone should contribute towards these costs by their tax payments. Lowell Schultz, owner of the property at 146 W Broadway said this project also caused water drainage problems on his property. Water has backed up to his door edge and he has spoken with Kyle Skov, City Engineer and was told this would be repaired so he also requests his assessment not be approved until after this is corrected. With no additional comments heard, at 7:16 p.m., Council Member Dotson made a motion to close the public hearing, Council Member Svenby seconded the motion. Council Member Dotson asked when the additional repairs will be made; Assistant City Engineer Pekuri replied these repairs should be complete within a few weeks. Council Member Voss made a motion to approve Resolution 99-19 adopting the proposed assessments for this project, Council Member Burbank seconded the motion. Council Member Dotson suggested action be tabled until after the repairs are complete as other properties may also need some modification. Greg Schultz confirmed problems remaining on this project are on only these two properties. City Administrator Busse suggested Council table action on these two parcels and approve the remaining parcels listed on the Assessment Roll. Council Member Voss rescinded his motion for approval of all Proposed Assessments, Council Member Burbank rescinded his second to this motion. Greg Schultz explained the proposed repairs needed on the two parcels. Council Member Burbank added this alley serves as a major walkway in the downtown area, so everyone wants this repaired correctly for safety concerns. Council Member Dotson made a motion to remove these two parcels from the Assessment Roll and adopt the remaining parcels. Council Member Svenby seconded the motion, all members voting, voted aye for approval. Resolution 99-19 set the payments payable over a 10-year period with an annual interest rate of 4.5%. The proposed assessments on the Besser and Schultz properties will be considered when the project is completed. Council President Schultz returned to his chair to preside over the meeting. Assistant City Engineer Pekuri advised the declared costs of improvement of the 2018 Park Drive Project were $2,739,207.57 of which $376,844.00 has been proposed as assessments. At 7:30 p.m. a public hearing was opened for comments on the proposed assessments for this project. With no comment heard, Council Member Burbank made a motion to close the public hearing, Council City Council Minutes October 15, 2019 Page 3 of 6 Member Raney seconded the motion; all members voted aye for approval. Council Member Raney made a motion to approve Resolution 100-19 adopting these proposed assessments payable over a 10-year period with an annual interest rate of 4.5%. Council Member Dotson seconded the motion, all members voted aye in approval Assistant City Engineer Pekuri advised the declared costs of improvement of the 2019 Concrete Streets Project were $779,598,97 with $191,991.80 proposed as assessments. At 7:32 p.m. a public hearing was opened for comments, with no comment heard, Council Member Burbank made a motion to close the public hearing, Council Member Voss seconded the motion; all members voted aye for approval. Council Member Raney made a motion to approve Resolution 101-19 adopting these proposed assessments, Council Member Voss seconded the motion, all members voted aye in approval. Terms of these assessments will be payable over a 10-year period with an annual interest rate of 4.0%. City Administrator Busse presented the delinquent mowing accounts proposed for assessment totaling $2,537.13. At 7:36 p.m. a public hearing was held for comment, but no comments were heard. Council Member Raney made a motion to close the public hearing, Council Member Svenby seconded the motion; all members voted aye and the motion carried. City Administrator Busse presented Resolution 109-19 to adopt the proposed assessments for the 2019 Mowing Project with repayment over a one-year period at an interest rate of 4.0%. Council Member Raney made a motion to approve Resolution 109-19, Council Member Burbank seconded the motion; all members voted aye for approval. Mayor Kuntz made Proclamation for the week of October 28 – November 1, 2019 as Red Ribbon Week. Red Ribbon Week is a national campaign offering citizen the opportunity to demonstrate their commitment to drug-free lifestyles. The Owatonna High School SHOC (Students Helping others Choose) will partner with the Steele County Safe and Drug Free Coalition to host a “Kickoff’ event for Red Ribbon Week on Monday, October 28th in Central Park beginning at 5:00 p.m. ISD #761 School Board President Mark Sebring gave a brief update on the upcoming Special Election for a Bond Referendum to construct a new high school on Tuesday, November 5, 2019. This last week, an agreement was made between Federated Insurance and the Rypka Family for property in the southeast part of town to construct a new high school. Federated Insurance will donate this property to the school if the election approves this new facility. The proposed site is 80+ acres in comparison to the current high school located on 19 acres; the additional space will allow on-site parking for all students, staff, and visitors. Council Member Raney commented he hopes to see a large amount of green space where the existing high school building is, the existing and proposed high school sites are both located in his ward, Ward 4. Council Member Raney asked about drainage and stormwater issues at the proposed site; Community Development Director Klecker confirmed these issues were all taken into consideration when considering building sites. The water table is high at this location, but the high school won’t have a basement and there will be a lot of green space with drainage available. Any construction at this site must meet the City’s current storm water plan so these shouldn’t cause any issues. City Council Minutes October 15, 2019 Page 4 of 6 Council President Schultz explained council members review the Consent Agenda items prior to the meeting for approval in one motion. Consent Agenda items for approval include: Minutes - City Council Meeting – October 1, 2019. Minutes - Human Rights Commission Meeting – September 10, 2019. Minutes - Park & Rec Board Meeting – October 7, 2019. Minutes - Airport Commission Meeting – September 12, 2019. Minutes - West Hills Commission Meeting – October 1, 2019. Event Permit – Red Ribbon Week Kick Off Celebration – October 29, 2019. September Report – Building & Inspections. Nuisance Report – October 11, 2019. Change Order No. 1 – 2019 Curb & Gutter Project – Timber Ridge Lane NE Project. Purchase Diesel Exhaust System – Owatonna Fire Department. T-Hangar Lease Agreements – Hangar #2, Unit J - Mike Noland Hangar #3, Unit E - Matt Walerius. Council Member Okerberg made a motion to approve these Consent Agenda items, Council Member Dotson seconded the motion. All members voted aye in approval. Vice President Raney recapped expenses for the period. Bills presented for payment totaled $498,312.00. Council Member Svenby made a motion to approve payment of these bills, Council Member Dotson seconded the motion and all members voted aye in approval. Assistant City Engineer Pekuri declared costs of the 2019 Curb and Gutter and Bituminous Project to be $269,554.40. This project was on Timber Ridge Lane NE with property owners petitioning for the repairs so costs will be assessed 100%. Council Member Svenby made a motion to approve Resolution 102-19 declaring the costs for this project. Council Member Burbank seconded the motion; all members voted aye in approval. Assistant City Engineer Pekuri presented Resolution 103-19 to set a public hearing on Wednesday, November 6th to consider the proposed assessments for the 2019 Curb and Gutter and Bituminous Project. Council Member Raney made a motion to approve Resolution 103-19, Council Member Okerberg seconded the motion; all members voted aye in approval. City Administrator Busse advised there is $1,541.60 owed for unpaid sidewalk snow removal fees. Council Member Dotson made a motion to approve Resolution 104-19 declaring these unpaid costs as proposed assessments, Council Member Voss seconded the motion; all members voted aye in approval. City Administrator Busse presented Resolution 105-19 setting a public hearing on Wednesday, November 6th to consider the proposed assessments for the Unpaid Sidewalk Snow Removal Fees. Council Member Raney made a motion to approve Resolution 105-19, Council Member Svenby seconded the motion; all members voted aye in approval. Community Development Director Klecker requested approval of Resolution 106-19 to approve Conditional Use No. C-1424. TSB Janesville LLC requested a minor PUD Amendment to allow for a reduced front setback on proposed units at 872 and 874 Escalade Lane SE to match the surrounding structure setbacks. The Planning Commission held a public hearing and recommend Council approval with the following conditions: City Council Minutes October 15, 2019 Page 5 of 6 1) All building and fire code requirements shall be adhered to as required by the City of Owatonna. 2) No further encroachments shall be permitted without additional amendments to the Planned Unit Development. Council Member Okerberg made a motion to approve Resolution 106-19 as recommended, Council Member Burbank seconded the motion; all members voted aye for approval. Human Resources Director Gorski requested approval of Resolution 107-19 accepting the Requests for Proposals for the 2020 Life and Long-Term Disability Insurance Contracts. The City will stay with their current life insurance carrier, MN Life; they offered a 2.8% discount and a 3-year guarantee. Madison National has offered a 12.63% savings for long-term disability insurance and a 3-year rate guarantee. With the savings to our proposed rate, we are requesting to increase the employees to $5,000 maximum salary at 50% coverage. Council Member Svenby made a motion to approve Resolution 107-19, Council Member Voss seconded the motion; all members voted aye in approval. Interim Park Director Klecker requested Council approve Resolution 108-19 to accept a $200,000 grant from the Minnesota Department of Natural Resources (DNR) to complete construction of the Inclusive Playground and Miracle Field at Manthey Park. The We All Play committee has been raising funds and with this grant the project should be completed in 2020. Council Member Dotson made a motion to approve Resolution 108-19, Council Member Voss seconded the motion; all members voted aye in approval. Community Development Director Klecker requested Council accept the request received from the Owatonna Soccer Association to name the soccer complex at 1102 E Rice Lake Road as “Daikin Soccer Complex”. This request was presented to the Park and Rec Board during their October Meeting; the Park and Rec Board recommends Council accept this request and set a date for a public hearing as required by the City’s Policy for Naming City Facilities. Council Member Raney made a motion to approved Resolution 110-19 setting a public hearing on Wednesday, November 6th to consider this naming request. Council Member Svenby seconded the motion; all members voted aye in approval. During Staff Comments, Human Resource Director Gorski advised two position currently open are Paid-on-Call Firefighter and Resident Firefighter. Tomorrow, there will be another position posted, an Electrician. Applications are completed on-line but if anyone has any questions, they should call her or Emily in the HR Department. Community Development Director Klecker gave a brief update on development projects. Assistant City Engineer Pekuri advised most of the street improvements projects are wrapping up for the year and staff is preparing 2020 projects. There were no comments heard during Public Comments. During Council Comments, Council Member Voss congratulated the Fire Department on a successful open house as more than 1,000 people attended. Council Member Dotson advised he has been recruited to become leader for this son’s Boy Scout Troop and invited anyone interested in Boy Scouts to attend their meeting at the Library next week. Council Member Raney commented the Roof Project at the City Administration Building is coming along and looks good; he then asked Mr. Sebring to explain where information can be found about the upcoming Special School Election. Mr. Sebring advised information about the new school project is available on the school’s website and also at “Owatonnaproud.org”. Mayor Kuntz commented it was good to see Minimizer break ground for their new warehouse last Friday, October 11th and then he advised City Council Minutes October 15, 2019 Page 6 of 6 everyone he was just notified all apartments in the new apartment building on Vine Street are all rented. City Administrator Busse reminded everyone there will be a Coffee with the Council at Pillsbury Campus on Saturday, October 26th from 8:30 a.m. to 9:30 a.m. At 8:07 p.m., Council Member Raney made a motion to adjourn the meeting, Council Member Voss seconded the motion. All members voted aye in approval. Dated: October 31, 2019 Respectfully Submitted, Jeanette Clawson, Administrative Specialist