City Council

Owatonna City Council Minutes The Owatonna City Council met in regular session on Tuesday, November 17, 2020 at 7:00 p.m. in Council Chambers at City Hall. The meeting was also virtually accessible via Microsoft TEAMS. Present in chambers were: Council Members Schultz, Raney, Voss, Dotson, and Okerberg; Mayor Kuntz; Community Development Director/Interim Parks and Recreation Director Klecker; City Attorney Walbran; City Administrator Busse; IT System Administrator Sticken and Administrative Specialist Clawson; attending virtually was Council Member Burbank; Council Member Svenby was unable to attend. Following the Pledge of Allegiance, Council President Schultz welcomed everyone to the meeting and read a meeting statement advising of the option to participate virtually and requirements for COVID-19 compliance requirements. Council President Schultz advised two items will be removed from the agenda: Authorization to Purchase Property at 1033 N Elm Avenue and Authorization of the Downtown Parking Study have been removed from the agenda. Council Member Okerberg made a motion to approve the agenda with these items removed, Council Member Dotson seconded the motion; with a roll call vote, all members voted aye in approval. Mayor Kuntz advised to plan for an update on current COVID concerns during the next Council Meeting. Council President Schultz explained council members review Consent Agenda items prior to the meeting for approval in one motion. Tonight’s Consent Agenda Items include: Council Minutes: November 4, 2020 Council Meeting. Minutes – Airport Commission Meeting – October 8, 2020. Minutes – Human Rights Commission Meeting – October 13, 2020. Building/Inspection Report – October 2020. Weed/Nuisance Compliance Report – November 13, 2020. Council Member Dotson made a motion to approve these Consent Agenda Items, Council Member Voss seconded the motion, with a roll call vote, all members voted aye for approval. Vice President Raney recapped expenses for the period. Bills presented for payment totaled $889,764.95. Council Member Dotson made a motion to approve payment of these bills, Council Member Voss seconded the motion, with a roll call vote, all members voted aye for approval. Community Development Director Klecker presented the first reading of Proposed Ordinance 20-11 to repeal the Parking Advisory Committee as discussed during a previous Study Session. The existing Parking Advisory Committee, more commonly known as the Downtown Parking Committee, meets quarterly and has encountered difficulty in making a quorum. The Planning Commission is familiar with parking concerns and can assume the duties of the Parking Advisory Committee. The Planning Commission meets twice a month and can more effectively address parking requests and concerns. Council Member Raney made a motion to approve the first reading of Proposed Ordinance 20-11, Council Member Okerberg seconded the motion, with a roll call vote, all members voted aye for approval. The second reading of this proposed ordinance will be scheduled during the December 1, 2020 Council Meeting. City Administrator Busse presented Resolution 154-20 setting a public hearing for financing a project by South Central Human Relations Center, Inc. Attorney Christopher J. Virta of the City Council Minutes November 17, 2020 Page 2 of 5 Fryberger Lar Firm was introduced to briefly explain the financing request. The City is asked to issue notes and the proceeds be loaned by the City to the Borrower for the purposes of 1) Refinancing, on a tax-exempt basis, the cost of constructing and equipping an administrative office building located at 622 Florence Avenue Northwest located in the City. 2) Refunding the outstanding principal amount of the City's 2014A Note, the proceeds of which were used to make capital improvements to the Borrower's administrative offices and consultation rooms located at 610 Florence Avenue located in the City (the "Main Campus Facility"). 3) Refunding the outstanding principal amount of the City's 2014B Note, the proceeds of which were used to redeem and prepay the City's Health Care Facilities Revenue Note, Series 2002 (South Central Human Relations Center Project), the proceeds of which were used to finance the acquisition, construction and equipping of the Main Campus Facility. 4) Refunding the outstanding principal amount of the City's 20140 Note, the proceeds of which were used to refinance, on a tax-exempt basis, the cost to acquire, construct and equip the Borrower's 8, 000 square foot mental health treatment facility for adults located at 185 Landmark Drive Northeast located in the City. 5) Paying costs of issuance of the Notes. The Borrower is proposing that the Notes will be sold to the Lender in a private placement transaction. The Notes will not be sold to the general public, they request that the City issue the Notes in late December 2020 for an amount not to exceed $3 million. Approximately half of this amount will refinance current bonds issued and half for their new office building. City Administrator Busse advised similar requests have been approved for other companies, the Notes will be special, limited obligations of the City and will be payable solely from revenues and assets of the Borrower. The Notes will not be general or moral obligations of the City and will not be secured by or payable from any assets, revenues, or other property of the City and will not be secured by or payable from any revenues derived from any application of the taxing powers of the City. Council Member Okerberg made a motion to approve Resolution 154-20 setting a public hearing on December 15, 2020 for comments on this financing request. Council Member Raney seconded the motion, with a roll call vote, all members voted aye in approval. City Administrator Busse requested approval of Resolution 155-20 setting a date for a public hearing to take comments on the proposed Facility Plan for the Wastewater Treatment Facility. In accordance with Minnesota Rules 7077.0272, Facility Plan for Wastewater Treatment Systems, a public hearing considering the following shall be completed: 1) The various treatment alternatives considered 2) The location of the project site 3) The reasons for choosing the selected treatment method 4) The estimated sewer service charges Council Member Okerberg made a motion to approve Resolution 155-20 setting a public hearing on Tuesday, December 1, 2020 for comments on this Facility Plan, Council Member Dotson seconded the motion, with a roll call vote, all members voted aye in approval. City Council Minutes November 17, 2020 Page 3 of 5 Community Development Director Klecker presented Resolution 156-20 for approval of the Preliminary Plat of a two lot residential plat being called Burzinski Hole Addition. Property owner Marcella Burzinski wishes to transfer a portion of her property to John & Sherri Hole, these properties are located at 30 Oakview Pl SE & 355 Havana Rd SE. This tract is 2.33+ acres, one parcel has never been platted and the applicant is required to plat both properties to transfer the piece of property between these two parties. The Planning Commission held a public hearing on this request with no opposition heard. The Planning Commission recommends approval recommends approval of this preliminary plat with the following conditions: 1) The final plat shall be approved within one year of the date of approval of the preliminary plat. 2) The title opinion shall be approved by the City Attorney prior to recording of the final plat. 3) A deed shall be recorded prior to the final plat deeding the portion of land from Burzinski to Hole as depicted in the plat. Council Member Dotson made a motion to approve Resolution 156-20 approving this preliminary plat with conditions recommended by the Planning Commission. Council Member Voss seconded the motion; with a roll call vote, all members voted aye in approval. Community Development Director Klecker requested approval of Resolution 157-20 for approval of the Preliminary Plat of Habitat Addition No. 2, a two lot residential plat. Two Rivers Habitat for Humanity owns a 0.63 acre lot that falls between Mosher Avenue and Linn Avenue SW, they wish to divide this lot into two parcels to construct project homes; property addresses will be 716 Linn Ave SW & Mosher Ave SW. The Planning Commission held a public hearing on this request and recommend approval with the following conditions: 1) The final plat shall be approved within one year of the date of approval of the preliminary plat. 2) The title opinion shall be approved by the City Attorney prior to recording of the final plat. 3) The floodplain lines shall be added to the final plat documents. 4) Lot 1, Block 1, shall meet all floodplain regulations when the house is constructed. Council Member Dotson made a motion to approve Resolution 157-20 approving this preliminary plat as recommended by the Planning Commission. Council Member Voss seconded the motion; with a roll call vote, all members voted aye in approval. Community Development Director Klecker requested approval of Resolution 158-20 approving the Preliminary and Final Plat of Mill Fleet Farm Second Addition as requested by Cheney Owatonna, LLC. This is a 41.86+ acre tract to be split to 3 lots and one outlot plat for commercial development located on West Bridge Street. The applicant hopes to sell the proposed Lot 1 for development and continue use of Lots 2 & 3 as their retail and convenience store. Lot 2 has a leg that extends towards I-35 to allow the large pylon sign to remain on their property. The outlot will be used for stormwater, if further development is proposed on this lot it would need to be replatted, wetlands delineated, and access as well as other issues figured out. The only intent with this lot at this time is stormwater. The applicant is proposing to record a joint drainage and a joint parking and access easement agreement. The Planning Commission held a public hearing on this request and recommend approval with these conditions: 1) The final plat shall be recorded within 60 days of this approval 2) The title opinion shall be approved by the City Attorney prior to recording of the final plat. City Council Minutes November 17, 2020 Page 4 of 5 3) The final plat approval is subject to no issues being issued by MNDOT in their review of the plat. 4) The drainage and access easements shall be recorded with the plat. Council Member Raney made a motion to approve Resolution 158-20 as recommended by the Planning Commission, Council Member Dotson seconded the motion; with a roll call vote, all members voted aye in approval. Community Development Director Klecker requested approval of Resolution 159-20 to execute a Purchase Option Agreement with LWO Limited Partnership #116 for the development of a second phase of Eastgate Apartments. The City has been working with LWO Limited Partnership #116 in development of Phase 1, a 36-unit workforce housing project on Cherry Street. Tax credits have been awarded for this project to make these units more affordable. The City has additional land adjacent to the project which could be used for Phase 2 and staff would work with the developer to secure tax credits for another workforce housing project over the next couple of years. The City would enter into a Purchase Agreement designating the terms of the purchase at a later date. Council Member Dotson made a motion to approve Resolution 159-20, Council Member Burbank seconded this motion; with a roll call vote, all members voted aye in approval. During Staff Comments, Community Development Director Klecker commented during 2020, 32 single family home building permits have issued which is more than those issued during 2019. He gave a brief overview on the status of several commercial construction projects: Foremost Brewery has been issued a Temporary Certificate of Occupancy so they are currently brewing beer with plans to open November 25th. Minimizer has enclosed their building, working interior dry wall and warehouse infrastructure started. The Point (the apartment building on Florence Avenue) the roof is shingled and interior framing started. Bosch Warehouse on Bridge Street has the exterior tip wall up and majority of the roof placed. Northern Natural Gas, purchased the former Jaycee Press Building in the Industrial Park and modifying the Building. They have completed interior framing and dry wall. This shows that an empty building in the Industrial Park does not sit vacate for very long in Owatonna So Central Human Services, Inc. on Florence has the foundation complete, underground plumbing installed and ready to pour concreate floor Eastgate Apartments footings complete and foundation walls started. Schrom Apartments has the foundation with underground plumbing in, waiting to pour concrete Seykora Asphalt has started footings for their building on W Bridge Street There were no comments heard during Public Comments. During Council Comments, Council Member Burbank encouraged everyone to stay safe and hang in there during this pandemic. Council Member commented 2020 has been a frustrating and hard year but still believes this in the greatest nation of the world and we have much to be grateful for; he wished everyone a Happy Thanksgiving and then reminded everyone the Winter Parking Ordinance is now in force so be careful to park on the right side of the street. Council Member Voss commented he hopes everyone can enjoy some family time during Thanksgiving and suggested turning off the TV and play a board game. Council Member Okerberg congratulated Lynn Gorski, Human Resource Director on receiving a CGMC Excellence of Service Award. Mayor Kuntz commented the current Building & Inspection Report shows 28 permits issued for new homes last year and this year there have been 32; that is impressive but not nearly as impressive as the value of the Construction Permits issued during 2020, $91,785,101 is a record for Owatonna. We challenge Troy and our Community City Council Minutes November 17, 2020 Page 5 of 5 Development staff to do this again next year. Also, thanks to Annie and others at the Owatonna People’s Press, they recently printed and distributed the Answer Book, Steele County Resource Guide which has a lot of good contact numbers. City Administrator Busse commented the results of the 2020 City Election were canvassed on Friday which showed almost 85% of the voters registered in Owatonna participated and it was great to see this large amount of voter participation. She also reminded everyone the City’s Truth in Taxation Meeting will be at 6:00 p.m. on Tuesday, December 1st prior to the next Council Meeting. Council President Schultz wished everyone a Happy Thanksgiving. At 7:29 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: November 19, 2020 Respectfully Submitted, Jeanette Clawson, Administrative Specialist