City Council

Owatonna City Council Minutes The Owatonna City Council met in regular session on Tuesday, December 17, 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 Dotson, Burbank, Raney, Svenby, Voss, Okerberg and Schultz. Also attending were Mayor Kuntz, City Attorney Walbran; Community Development Director/Interim Parks and Recreation Director Klecker; Public Works Director Skov; Finance Director Moen; 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 Schultz advised two public hearings are planned for this meeting and explained the procedure of conducting a public hearing during City Council Meetings. Community Development Director Klecker advised the first public hearing was for comments regarding the establishment of Development District No. 13 and Tax Increment Financing District No. 13-1 and the use of tax increment financing for Foremost Properties, LLC. Cost associated with establishing the TIF District will be paid by the EDA and will be reimbursed throughout the life of the district which can go up to 25 years. Council will also consider the application for Conditional Use Permit No. C-1426 to renovate property at 131 W Broadway Street to locate Foremost Brew Pub; the Planning Commission held a public hearing for comments on December 10, 2019 and recommend council approval. At 7:07 p.m., a public hearing was opened, Dave Effertz, 2000 Linn Drive, Secretary of Foremost Properties, LLC commented there are nine local investors wanting this project to succeed. Brad Meier, CEO, Owatonna Chamber of Commerce encouraged Council to approve this project promoting the City’s Strategic Planning goal to revitalize the downtown area saying it will be a costly renovation and TIF funds needed to get the project done but this will add vitality to the community. With no additional comments heard, at 7:09 p.m., Council Member Raney made a motion to close the public hearing, Council Member Burbank seconded the motion; all members voted aye in approval. Council Member Svenby asked for the Development Agreement proposed for this project; Community Development Director Klecker advised this is scheduled for consideration during the next Council Meeting, January 7, 2020. Council Member Raney thanked Foremost Properties, LLC for proposing this project as another step in revitalizing the downtown area as were Torey’s Restaurant and the Mineral Springs Brewery. Council Member Svenby made a motion to approve Resolution 129-19 approving the establishment of Development District 13; Council Member Okerberg seconded the motion; All members voted aye an approval. Council Member Raney made a motion to approve Resolution 140-19 establishing Tax Increment Financing District No. 13-1 and the use of Tax Increment Financing for Foremost Brew Cooperative. Council Member Voss seconded the motion; all members voted aye in approval. Council Member Burbank made a motion to approve Resolution 141-19 to approve Conditional Use No. C-1426 as recommended by the Planning Commission. Council Member Dotson seconded the motion; all members voted aye in approval. At 7:13 p.m., a public hearing was held for comments on the proposed assessments for the 2019 City Council Minutes December 17, 2019 Page 2 of 7 Street & Utility Project. Pete Connor, 421 13th St NE questioned if these proposed assessments included costs for the contractor to correct a wet spot and he wanted Council to be aware of the project modification, this might have compromised the lifetime of this improvement; he then requested traffic speed be monitored on Cedar Avenue between 13th Street and 26th Street. With no additional comments, at 7:20 p.m., Council Member Dotson made a motion to close the public hearing, Council Member Svenby seconded the motion; all members voted aye in approval. City Administrator Busse commented the LEC has been contacted to monitor speed on North Cedar Avenue. Public Works Director Skov commented there is a 3-year warranty for project defect, so protection is in place for the modification made. Public Works Director Skov explained the amount of the Assessment Roll presented for approval is $294,760.44; $68,120.00 lower than the Proposed Assessment List which included eight parcels on 22nd St NE in error (original project plan included improvement to a segment on 22nd Street NE which was later removed). Council Member Voss made a motion to approve resolution 130-19, Council Member Okerberg seconded the motion; all members voted aye in approval. Council President Schultz explained council members review the Consent Agenda items prior to the meeting for approval in one motion. The Consent Agenda items for approval include: Minutes - Council Meeting – December 3, 2019. Minutes - Truth-n-Taxation Meeting – December 3, 2019. Exempt Permit – NWTF Steels Spurs Chapter Raffle – January 24, 2020. Renew Annual Garbage Haulers Permits: GreenRU, LLC; Hometown Haulers, LLC; LJP Enterprises, Inc.; Skjeveland Enterprises; Stewart Companies, Inc.; Waste Management of Southern Minnesota; and Veit Disposal Systems. Renew Annual Taxi-Cab Permits: First Choice Shuttle and Tonna Taxi Service. Temporary Liquor Permit – Andrew Lawrence Chili Cookoff, Knights of Columbus at the Armory - February 1, 2020. Minutes – Airport Commission Meeting – November 14, 2019. Minutes – Human Rights Commission Meeting – November 12, 2019. Minutes – Park & Rec Board Meeting – December 9, 2019. November Building/Inspection Report. Renew Service Agreement – Langer Aviation. Renew Facility Use Agreement - Owatonna Church of Christ. Renew Facility Use Agreement - Little Theater of Owatonna. Renew Facility Use Agreement – AARP. Renew Facility Use Agreement - Courage Kenny Rehabilitation Institute/Allina Health Facility. Renew Rental Lease Contract – Healthy Seniors. Renew Rental Lease Contract - SEMCAC Sr Dining. Renew Personal Trainer Independent Contractor Agreement – Aaron Halla. Renew Yoga Instructor Independent Contractor Agreement – Denise Stewart. Set Date for Local Board of Appeal and Equalization (LBAE) Meeting – April 21, 2020. Renew Contract for Cleaning Services at Tennis & Fitness Center - Vanguard. Renew Annexation Agreement – Owatonna Township. . City Attorney Walbran advised approval of the Service Agreement with Langer Aviation will be contingent on receipt of an amended Certificate of Insurance. Council Member Svenby asked if City Council Minutes December 17, 2019 Page 3 of 7 the start time of the LBAE Meeting will be changed to 6:00 p.m., City Administrator Busse confirmed that has been requested. Council Member Svenby made a motion to approve these Consent Agenda items as discussed; Council Member Voss seconded the motion. All members voting, voted aye in approval. Vice President Raney recapped expenses for the period. Bills presented for payment totaled $823.924.11. Council Member Voss made a motion to approve payment of these bills, Council Member Burbank seconded the motion and all members voted aye in approval. Public Works Director Skov presented the second/final reading of proposed Ordinance Amendment 19-11 requiring public sidewalks be cleared of debris, snow, ice, dirt, or any items in all districts within 24 hours after its deposit. The current City Ordinance requires sidewalks in the Business Districts be cleared within 24 hours and allows within 48 hours in residential districts. An administrative citation may be issued to any person in violation of the ordinance and an administrative civil fine may be imposed in addition to the costs incurred by the City to clear the sidewalk. Council Member Raney made a motion to approve Proposed Ordinance 19-11 and Council Member Dotson seconded the motion. With a roll call vote, voting aye were Council Members Burbank, Raney, Svenby, Voss, Okerberg, Dotson and Schultz; voting nay were none; the motion was approved. This will be known as Ordinance 1599 to be effective upon publication. Public Works Director Skov presented the second reading of proposed Ordinance Amendment 19- 12 to amend the Fee Schedule in Chapter 35, Appendix A of the City’s 2015 Code of Ordinances with addition of a Civil Penalty for violation the ordinance requiring sidewalks be cleared within 24 hours. The penalty amount charged for violating this ordinance will be $40 for the first occurrence, $60 for the second occurrence and $80 for the third occurrence within a calendar year. Council Member Svenby made a motion to approve the first reading of Proposed Ordinance 19-12 with this change, Council Member Burbank seconded the motion. With a roll call vote, voting aye were Council Members Burbank, Raney, Svenby, Voss, Okerberg, Dotson and Schultz; voting nay were none; the motion was approved. This will be known as Ordinance 1600 effective upon publication. Public Works Director Skov requested the first reading of Proposed Ordinance 19-13 to amend Section 35, Appendix A Fee Schedule for Sewer Rates be tabled for review of comments from Owatonna Public Works. Council Member Raney made a motion to table the first reading of this proposed ordinance, Council Member Dotson seconded the motion; all members voted aye in approval. Community Development Director Klecker presented the first reading of Proposed Ordinance 19- 14, a request by Growth Holding, LLC to rezone the property at 621 W Bridge Street from R-3, Single & Two-Family Residential to B-2, Community Business District. They have a purchase agreement on this property for construction of a drive through coffee shop. The Planning Commission held a public hearing on this request and recommend council approval. Council Member Dotson made a motion to approve the first reading of Proposed Ordinance 19-14, Council Member Svenby seconded the motion. With a roll call vote, voting aye were Council Members Burbank, Raney, Svenby, Voss, Okerberg, Dotson and Schultz; voting nay were none; the motion was approved. The second/final reading of Proposed Ordinance 19-14 will be heard during the January 7, 2020 Council Meeting. City Council Minutes December 17, 2019 Page 4 of 7 Public Works Director Skov requested approval of Resolution 131-19 ordering preparation of the 2020 Bridge Street Project Feasibility Report. The 2020 Bridge Street Project involves reconstruction of Bridge Street from I-35 to 24th Avenue. Construction includes stormwater improvements and a new concrete street. The signal at Park Drive will be replaced and a roundabout will be constructed at 24th Avenue. Work is expected to be completed in 2020; however, it may be late in the year and unable to finalize assessments during 2020. The project will be completed in phases to allow businesses access during the construction period. Council Member Raney made a motion to approve Resolution 131-19, Council Member Okerberg seconded the motion; all members voted aye in approval. Public Works Director Skov requested approval of Resolution 132-19 ordering preparation of the 2020 Truman Avenue Reconstruction Feasibility Report. This project involves work on Truman Avenue from Havana Road to Main Street. The street is planned for full reconstruct including new sanitary sewer, watermain, storm sewer, aggregate base, curb, sidewalk, and pavement. A sidewalk will be added to the west side of the roadway. Anticipating this project will be done late September and may not be able to complete assessments to meet the year-end certification date. Council Member Svenby made a motion to approve Resolution 132-19, Council member Burbank Seconded the motion; all members voted aye in approval. Public Works Director Skov requested approval of Resolution 133-19 ordering preparation of the 2020 Street & Utility Project feasibility report. The 2020 Street & Utility Project involves various levels of reconstruction work on: Cherry Street, Shady Avenue and Greenhaven Lane. Council Member Raney made a motion to approve Resolution 133-19, Council Member Dotson seconded the motion; all members voted aye in approval. Interim Park Director Klecker requested approval of Resolution 134-19 and Resolution 135-19 for the Federal Transportation Alternatives Program (TAP) for the 18th Street Trail from Linn Avenue to Austin Road. The development of this segment of trail was identified in the Owatonna Parks & Trails Master Plan in 2019. Council authorized application of this TAP Grant during their last meeting on December 3, 2019. Resolution 134-9 authorizes the City to act as the Sponsoring Agency for this project. Sponsorship includes a willingness to secure and guarantee the local share of costs, there is a 20% local match required. The local match may be covered by Minnesota DNR Local Trail Connections Grant. If DNR grant dollars are not available, other grants will be pursued. The requested grant amount is $734,661; the total local match is $183,665. Council Member Burbank made a motion to approve Resolution 143-19; Council Member Okerberg seconded the motion; all members voted aye in approval. Council Member Raney made a motion to approve Resolution 135-19 agreeing to maintain the trail for its useful life of the improvement and not change the use of right of way or property ownership acquired without prior approval from the Federal Highway Administration. Council Member Voss seconded the motion; all members voted aye in approval. City Administrator Busse requested approval of Resolution 136-19 adopting the proposed Streetscape Study prepared by WSB and Associates. Downtown revitalization has been a key goal of the Strategic Plan; the overall goal being to develop a long-term cohesive and functional City Council Minutes December 17, 2019 Page 5 of 7 downtown plan that can be implemented in phases over a period of time. The draft plan was reviewed by the City Council on May 21, 2019 and Council comments were incorporated into the final plan. These changes included: • More information on lighting and photometric plans. • Updated site furniture options – including a more cost-effective option. • More information on placement of site furniture along a typical block. • Reorganized entire document and included an appendix. Copy of the Streetscape Study will be available on the City’s website on the Administration Page. Council Member Voss made a motion to approve Resolution 136-19, Council Member Okerberg seconded the motion; all members voted aye in approval. City Administrator Busse commented the 2020 Budget is an accumulation of many months of work by staff members and Council. The Final 2020 Budget presented for Council approval promotes the City’s Strategic Plan and offers citizens good services and amenities. Finance Director Moen presented three resolutions for consideration: 1. Resolution 137-19 to adopt the final 2019 budget with expenditure of $35,344,093 and revenues of $34,639,274. 2. Resolution 138-19 to set the 2019 final levy amount for the City a direct ad valorem tax in the amount of $11,702,919 for general government, $170,882 PERA rate change and $1,659,430 for debt retirement. 3. Resolution 139-19 to set the 2018 final levy amount for the HRA at $185,000. On September 3, 2019, Council adopted a preliminary levy that was a 4.5 increase over the prior year’s levy. The final levy amount now includes only a 4.25% increase. This compares to an increase in the City’s Tax Capacity of 5.5%, resulting in a decrease in the City’s tax rate. Increases to the levies will aid in meeting the City’s goals as outlined in the City’s Strategic Plan. Council Member Burbank made a motion to approve Resolution 137-19, Council Member Okerberg seconded the motion; all members present voted aye for approval. Council Member Raney made a motion to approve Resolution 138-19; Council Member Svenby seconded the motion, all members present voted aye for approval. Council Member Okerberg made a motion to approve Resolution 139-19; Council Member Dotson seconded the motion; all members present voted aye for approval. Community Development Director Klecker requested approval of Resolution 142-19 approving the Preliminary and Final Plat of Drive Thru Addition and Resolution 143-19 approving Conditional Use Permit C-1427. Growth Holdings, LLC, is requesting this as a one-lot commercial plat and will be dedicating additional right of way for W Bridge Street. This property is located at 621 Bridge Street West and they plan to demolish the existing structure on the property and construct a new drive thru coffee shop. The Planning Commission recommends approval with the following conditions: 1) The title opinion shall be approved by the City Attorney prior to recording of the final plat. 2) Approval of the final plat shall be contingent on the approval of the rezoning request. Staff has added two additional conditions included for approval: 1) The final plat shall be recorded within 50 days of this approval. 2) All stormwater requirements shall be met prior to issuing of a grading permit. City Council Minutes December 17, 2019 Page 6 of 7 Council Member Dotson made a motion to approve Resolution 142-19, Council Member Burbank seconded the motion; all members voted aye in approval. Council Member Raney made a motion to approve Resolution 143-19 approving Conditional Use Permit C-1427 for construction of a drive through coffee shop at this location, Council Member Svenby seconded the motion; all members voted aye in approval. City Administrator Busse presented Resolution 144-19 for approval of the Labor Agreement between the City, the Sergeant Unit and the Minnesota Public Employees Association for 2020 and 2021. Summary of the changes include: Wage Scale: Approval of a 2% increase on the approved wage scale for 2020 effective on January 1, 2020, and a 1% increase effective June 21, 2020. Approval of a 2% increase on the approved wage scale for 2021 effective on January 1, 2021, and a 1% increase effective June 20, 2021. Employees that have remaining steps on the wage scale will receive a step effective June 21, 2020 and June 20, 2021. Insurance: $23 (single) and $66 (family) increase in employer contribution for 2020. $25 (single) and $69 (family) increase in employer contribution for 2021. Health Care Savings Plan: All eligible sick, vacation and PTO will be deposited into the HCSP when leaving on good terms of retirement or at least 10 years of service with the City. Cancelled Court: Two (2) hours of overtime of over-time pay. Council Member Dotson made a motion to approve Resolution 144-19, Council Member Voss seconded the motion, all members voted aye for approval. City Administrator Busse presented Resolution 145-19 for approval of the Labor Agreement between the City and the International Association of Fire fighters, Local Union No. 1920. Summary of the changes include: Wage Scale: Approval of a 2% increase on the approved wage scale for 2020 effective on January 1, 2020, and a 1% increase effective June 21, 2020. Approval of a 2% increase on the approved wage scale for 2021 effective on January 1, 2021, and a 1% increase effective June 20, 2021. Employees that have remaining steps on the wage scale will receive a step effective June 21, 2020 and June 20, 2021. Insurance: $23 (single) and $66 (family) increase in employer contribution for 2020. $25 (single) and $69 (family) increase in employer contribution for 2021. Probationary Limit Changes from 6 months to 12 months. Uniforms List out the specific items a new employee is provided when hired. City Council Minutes December 17, 2019 Page 7 of 7 Council Member Okerberg made a motion to approve Resolution 145-19, Council Member Dotson seconded the motion, all members voted aye for approval. City Administrator Busse requested approval of a general wage increase for the Paid- On-Call and Resident Fire Fighters for 2020, a 2% increase effective on January 1, 2020 and a 1% increase effective June 21, 2020. Council member Raney made a motion to approve this wage adjustment, Council Member Dotson seconded the motion. City Administrator Busse requested approval of Wage and Benefit Adjustments for 2020 for non- union employees. Wage Scale: Approval of a 2% increase on the approved wage scale for 2020 effective on January 1, 2020, and a 1% increase effective June 21, 2020. Employees that have remaining steps on the wage scale will receive a step effective June 21, 2020. Insurance: $23 (single) and $66 (family) increase in employer contribution for 2020. Council Member Burbank made a motion to approve these wage and benefit adjustments, Council Member Voss seconded the motion; all members voted aye in approval. Staff Comments: Public Works Director Skov commented things are going well, there has been some snow which crew is managing. Community Development Director Klecker said there are a lot of projects underway, 40 commercial permits currently in process and anticipating 2020 will also be a busy year. Finance Director Moen commented the Finance Department has also been busy, they are currently helping departments wrap up 2019. During Public Comment, Scott Wolfe - 833 South Street requested clarification about the ordinance approved tonight. Discussion on who was responsible to remove snow and who was to follow up on concerns. Public Works Director Skov advised his department will respond during regular office hours. Brad Meier, CEO Owatonna Chamber thanked Council for keeping the 2020 City Levy below the City’s Growth Rate. During Council Comments, Council Member Burbank wished everyone a Merry Christmas and Happy 2020. Council Member Raney wished every safe travel during the holidays hoping there won’t be any additional snow and thanked City Staff for getting things done and looking forward to 2020. Mayor Kuntz wished everyone a Merry Christmas and Happy New Year and then thanked City Administrator Busse for timely completing these labor contract negotiations. City Administration Busse reminded everyone City Offices will be closed for the holidays December 24th and 25th and January 1st. Council President wished every Happy Holidays with hopes everyone will get to spend some time with their families. At 8:17 p.m., Council Member Raney made a motion to adjourn the meeting, Council Member Dotson seconded the motion, all members voted aye in approval. Dated: January 3, 2020 Respectfully Submitted, Jeanette Clawson, Administrative Specialist