City Council

Owatonna City Council Minutes The Owatonna City Council met in regular session on Tuesday, December 1, 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, Svenby and Okerberg; Mayor Kuntz; Community Development Director/Interim Parks and Recreation Director Klecker; Police Chief Hiller; Public Works Director Skov; City Attorney Walbran; City Administrator Busse; IT System Administrator O’Connor and Administrative Specialist Clawson. Attending virtually was Council Member Burbank. Following the Pledge of Allegiance, Council President Schultz welcomed everyone to the meeting and read a meeting statement advising of virtual participation option and COVID-19 compliance requirements. Council Member Svenby made a motion to approve the agenda as presented, Council Member Voss seconded the motion; all members voted aye in approval. Council President Schultz advised two public hearings are planned; the first to receive comments on establishment of Development District 16 and Tax Increment Financing District 16-1 at 202 W Bridge Street. The second hearing is to receive comments on the Facility Plan for the Wastewater Treatment Plant. Community Development Director Klecker explained RL Holdings, LLC has requested use of tax increment financing to assist with the costs associated with the extensive renovations to the building at 202 West Bridge Street. The building is planned to be renovated into retail and office space. The TIF Plan calls for $300,000 in TIF dollars to assist with eligible TIF project expenditures. With administrative costs to reimburse the City, the total TIF amount would be $315,789. The total length of the TIF district can go up 25 years but with this amount, the TIF district will likely be decertified in 9 or 10 years. Total investment for this project is approximately $1.5 million. The consulting fees for the TIF financing will be paid by the EDA and included in the TIF plan for reimbursement through the life of the TIF District. At 7:07 p.m., the public hearing was opened for comments. Darrin Stadheim, President & CEO Stadheim Properties thanked Council and City Administration for participating in this project. With no additional comments, at 7:09 p.m. Council Member Raney made a motion to close the public hearing, Council Member Dotson seconded the motion with a roll call vote, all members voted aye in approval. Council Member Raney made a motion to approve Resolution 160-20 approving Development District No. 16. Council Member Dotson seconded the motion, with a roll call vote, all members voted aye in approval. Council Member Raney made a motion to approved Resolution 161-20 approving Increment Financing District No. 16-1 and the use of tax increment financing for the project proposed at 202 West Bridge Street. Council Member Voss seconded the motion, with a roll call vote, all members voted aye for approval. Council Member Okerberg made a motion to approve the Development Agreement with RL Holdings, LLC for the project at 202 West Bridge Street. Council Member Voss seconded the motion; with a roll call vote, all members voted aye in approval. Public Works Director Skov advised in accordance with Minnesota Rules 7077.0272, Facility Plan for Wastewater Treatment Systems, a public hearing is required to consider the following: City Council Minutes December 1, 2020 Page 2 of 6 • The various treatment alternatives considered • The location of the project site • The reasons for choosing the selected treatment method • The estimated sewer service charges Eric Meester, President at Nero Engineering was introduced. This public hearing is to: present the preliminary engineering report to outline alternatives to expand the Wastewater Treatment Facility (WWTF); provide a recommended path forward; obtain public input on the proposed improvements; obtain council approval of the Facility Plan and recommendations; and required to obtaining funding and grants. This hearing it is not authorizing a specific project and is not authorizing a construction project. The current facility was built in 1988, they completed an assessment of existing conditions and prepared Flows & Loading Projections. The Facility Plan prepared includes a design life over a 30-year period. Review of the Antidegradation Analysis to project the flow of the stream with new facility showed no significant impact. They prepared two Expansion Concept Plans with alternatives of varying levels of phosphorus removal: 1) Expand activated sludge process (existing WWTF) 2) Convert to Membrane Bio-Reactor (MBR) Process. They prepared five project alternatives with projected costs ranged between $58 million and $69.5million. Their staff is required by rule to select the least degrading, most feasible alternative and recommend the Alt2C-MBR w/modified Bio-P. The Facility Plan was submitted to the MCPA in October 2019 and they are currently waiting for the permit. A Draft Permit should be received within the next month, there will be a 30- day period for comments and then a 60-day public notice to finalize plans for the final permit application to be submitted in June. They will begin design per this recommend path in January and anticipate the bids period will be during the late winter of 2022 for construction to be completed in 2023. At 7:21 p.m., the public hearing was opened for comments on this proposed Facility Plan. With no comments heard, Council Member Burbank made a motion to close the public hearing, Council Member Raney seconded the motion, with a roll call vote, all members voted aye in approval. Council Member Okerberg made a motion to approve Resolution 162-20 adopting the Facilities Plan for the Sanitary Sewer System Improvements as prepared by Nero engineering, Council Member Svenby seconded the motion; with a roll call vote all members voted aye in approval. Mayor Kuntz commented ISD #761 School Superintendent Jeff Elstad, Dr. Brian Bunkers; Chief Physician at the Owatonna Mayo Clinic and Steele County Emergency Management Director Mike Johnson were asked to provide updates on current COVID-19 Pandemic conditions. Superintendent Elstad explained the school reviews four key indicators to determine if they offer in-person classes, online classes, or a combination option. These key four factors are: 1) Health – look at the Positivity Test Rate for 10,000 residents. 2) Academic – look at attendance and schedule options, transportation has created several hurdles to overcome. 3) Staffing – staff absentee rates and ability to maintain state learning environments 4) Safety – Personal Protective Equipment and HVAC Systems operations to maintain clean air. The current rate of Covid-19 incurrence is currently high, and they just advised parents classes will be on-line through January 8th. Current plan allows elementary students to return to school on Monday, January 11, 2021 and hopefully all students will be back during January as he believes they City Council Minutes December 1, 2020 Page 3 of 6 provide the best learning opportunities when in person. The pandemic has shown opportunity for improvements, they have learned a lot and will expand on the positive things. Dr. Bunkers confirmed Steele County is currently incurring a positivity surge. The clinic moved their testing site to the former hospital clinic near Fareway. There have been 2, 000 cases with 100 hospitalized, and 7 deaths in Steele County. During the early months, approximately 3% of patients hospitalized died and now only 1% ends in death so health care has been improving. In Owatonna, they have seen an average of 10 patients hospitalized over the last 3-4 weeks, and now seeing more patients with other health concerns which went unattended for several months. Highly recommend everyone should wear a mask and practice social distancing. Projected estimate that 15% of the US population has been infected and anticipate the virus will affect 65-70 percent of the population so still in the early stages. Mike Johnson, Emergency Management Director explained plans for the vaccination plan when available through Steele County Public Health. A large distribution site has been selected and a notification system being prepared. When the vaccine arrives, they will manage distribution per the established plan. The vaccine requires a booster after 21 days so they will need to schedule appointments and follow-up appointments. They hope to efficiently deliver the vaccine as quickly as possible when the vaccine is available. 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: Minutes - November 13, 2020 Council Meeting – Canvass City Election. Minutes - November 17, 2020 Council Meeting. Minutes – Park & Rec Board Meeting – November 9, 2020. Minutes – Owatonna Public Utility Commission – October 27, 2020. Accept Donation from Gladys Wavrin Estate – $25,843 for the West Hills Social Commons Kitchen Remodel Project. Accept Target Foundation $2,500 Grant Award for the Fire Department to purchase escape Ladders 5-year Contract for Rugs and Uniform Services – Aramark - $10,670.92/year Resolution 168-20: Authorize Fame Award Purchases in the amount of $741.00. T-Hangar Lease Agreement – Connor McCartney. Council Member Voss advised he will recuse from voting as he has a personal interest in Fame Awards. Council Member Dotson made a motion to approve these Consent Agenda Items, Council Member Svenby seconded the motion; with a roll call vote, six members voting all voted aye for approval. Vice President Raney recapped expenses for the period. Bills presented for payment totaled $578,839.56. Council Member Svenby 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 second/final reading of Proposed Ordinance 20-11 to repeal the Parking Advisory Committee. Council approved the first reading during the November 17, 2020 Council Meeting and there have been no changes since. The Planning Commission will address parking requests and concerns. Council Member Raney made a motion to approve this proposed ordinance, Council Member Dotson seconded the motion, with a roll call vote, members voting aye were Burbank Raney, Svenby, Voss, Okerberg, Dotson and City Council Minutes December 1, 2020 Page 4 of 6 Schultz, the motion carried. This will be known as Ordinance 1611 which shall be in full force and effect from and after its passage and publication. Police Chief Hiller presented the first reading of Proposed Ordinance 20-11 to amend Chapter 72 of the 2015 Ordinance Code for Parking. Two sections of this chapter will be amended: Section 72.04, Vehicles Towed by Police will be changed to provide that in addition to the fine for overtime parking, the owner must also pay the actual cost of towing and storing the vehicle. This amendment also clarifies that every day that a vehicle is illegally parked constitutes a separate petty offense. Section 72.99 Penalties will be changed to: 1. Parking beyond time limit: First offense - Warning Second and third offense $10 Fourth offense $20 Fifth offense $40 Eighth offense $60 Ninth offense $80 Tenth and subsequent offense $100, ….. and these six items added: (r) Parking in a 30-minute zone: $10; (s) Parked in opposing traffic: $10; (t) Parked 11:00 p.m.to 6:00 a.m.: $10; (u) No parking school days 8:00 a.m. to 4:00 p.m.: $10; (v) Parked over 24 hours; $10; (w) No stopping ordinance: $10. (4) For violations of § 72.06 of this chapter, payments must be made within 10 days. Late fees will be assessed as follows: after ten days, $10 penalty; and after 30 days but before issuance of a warrant, $30 penalty. Council Member Dotson made a motion to approve the first reading of Proposed Ordinance 20-11 amending Chapter 72, Parking Generally. Council Member Okerberg seconded the motion. With a roll call vote, members voting aye were Burbank Raney, Svenby, Voss, Okerberg, Dotson and Schultz, the motion carried. The second reading will be heard during the next Council Meeting on December 15, 2020. Police Chief Hiller presented the first reading of Proposed Ordinance 20-12 to change to the impounding fees for animals authorized in Sections 90.08 and 90.27 of the current City Code which is listed in Chapter 35, Appendix A, Fee Schedule. City Council has recommended the current daily impound fee of $7.00 per day be changed to $20 per day. Council Member Raney made a motion to approve the first reading of Proposed Ordinance 20-12, Council Member Svenby seconded the motion; with a roll call vote, members voting aye were Burbank Raney, Svenby, Voss, Okerberg, Dotson and Schultz, the motion carried. The second reading will be heard during the Council Meeting on December 15, 2020. Public Works Director Skov requested approval of Proposed Ordinance 20-13 to amend Ordinance §97.03 pertaining to boulevard tree surcharges. Boulevard tree surcharges are collected when building permits are issued for new home construction or when a replacement boulevard tree is requested by a property owner. Current costs are $100 for large variety trees and $80 for small variety trees. Staff proposes adjusting the cost to $150 for both varieties, the current fee amounts have been used for more than 20 years. Council Member Raney made a motion to table action on City Council Minutes December 1, 2020 Page 5 of 6 this proposed ordinance to allow further review. Council Member Dotson seconded the motion. With a roll call vote, members voting aye were Burbank Raney, Svenby, Voss, Okerberg, Dotson and Schultz, the motion carried. Community Development Director Klecker requested approval of a Purchase Agreement to sell city owned property for development of a new hotel on the east side of the 200 block of North Cedar Avenue by Owatonna Hospitality 1, LLC. This is site of the former theater lot on North Cedar and a public parking lot off of East Pearl Street. The purchase price is $268,000 for the two parcels which is the assessed value of the two properties. Owatonna Hospitality 1, LLC is requesting tax increment financing to pay for the two parcels over a 25-year period. The purchase agreement allows for a due diligence period prior to project approval. Council Member Svenby made a motion to approve this purchase agreement, Council Member Dotson seconded the motion, with a roll vote, all members voted aye. Community Development Director Klecker requested approval of Resolution 163-20 to set a Public Hearing for Development District No. 10 Plan Modification, Tax Increment Financing District 10-1 Plan Modification and Tax Increment Financing District 10-2 Plan. Tax Increment Financing is being requested for the redevelopment of the east side of the 200 block of North Cedar Avenue into a hotel and restaurant and the north side of the 200 block of East Pearl Street into a 37-unit market rate apartment building. TIF will be used to assist in the costs associated with demolition, renovation, and site improvements of both sites. TIF funds will also be used to reimburse the City for expenses incurred for acquisition and demolition of buildings on the sites and for purchasing land currently owned by the City. Council Member Dotson made a motion to approve Resolution 163-20 setting a public hearing on Tuesday, January 5, 2021 for comments on these items. Council Member Raney seconded the motion; with a roll call vote, all members voted aye in approval. Public Works Director Skov requested approval of Resolution 164-20 declaring costs for the 2020 Delinquent Snow Removal Accounts. The unpaid sidewalk snow clearing fees incurred during the 2019-2020 Winter Season are being proposed as assessments in the amount of $1,734.85 as reimbursements as provided by our policies and state statute. Council Member Dotson made a motion to approve Resolution 164-20, Council Member Voss seconded the motion, with a roll call vote, all members voted aye in approval. Public Works Director Skov requested approval of Resolution 165-20 setting a date for a public hearing to consider the assessments proposed for the unpaid sidewalk snow clearing fees. Council Member Raney made a motion to approve Resolution 165-20 setting this Public Hearing Date on January 5, 2021. Council Member Svenby seconded the motion, with a roll call vote, all members voted aye in approval. Interim Park Director Klecker requested approval of Resolution 166-20 as authorization to apply for a TAP Grant to assist in the development of a trail segment connecting the 18th Street Trail from Austin Road to Hayes Avenue. The City will act as the sponsoring agency for the project identified as the 18th Street Trail Project. The development of this segment of trail was identified in the Owatonna Parks & Trails Master Plan in 2019. A letter of intent was submitted by October 30, 2020, and upon review of the MN DOT, was approved and recommended we proceed with the full grant application. The application deadline is January 8, 2021 for grant cycle 2025. The previous segment, from Linn Avenue to Austin Road was awarded TAP grant funding for fiscal year 2024. City Council Minutes December 1, 2020 Page 6 of 6 Letters of support will be solicited (as they were in the previous TAP grant), including city officials. There is a 20% local match required, the local match may possibly 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 $618,680.56 with matching funds amount of $154,670.14. Council Member Raney made a motion to approve Resolution 166-20, Council Member Svenby seconded the motion, with a roll call vote, all members voted aye in approval. Interim Park Director Klecker requested approval of Resolution 167-20; documentation required for the TAP application. This resolution requires the City maintain the facility (trail) developed with use of this grant. This grant is for development of the 18th Street Trail from Austin Road to Hayes Avenue. Council Member Svenby made a motion to approve Resolution 167-20, Council Member Burbank seconded the motion, with a roll call vote, all members voted aye in approval. Public Works Director Skov requested a motion approving ISG, Inc for the Downtown Streetscaping Project. The North Cedar Avenue Streetscape Improvement Project includes plans and specifications for the reconstruction of Cedar Avenue from Broadway to Rose. The proposal for Professional Planning and Design Services is $376,566; this is a proposal not to exceed this amount and staff will look for opportunities to provide information to save costs. Council Member Okerberg made motion to approve this proposal, Council Member Raney seconded the motion, with a roll call vote, all members voted aye in approval. During Staff Comments, Public Works Director Skov reported staff is preparing equipment for snow removal and the engineering staff is preparing next year’s construction projects. Police Chief Hiller advised staff assisted with an Active Shooter call in Albert Lea this past weekend. The City is part of a consortium with a combined Task Force and SWAT team so there will be hours incurred for reports and investigation. There were three injuries, but no fatalities incurred during this incident, our officers are thankful for the support received to be a part of this group. Community Development Director Klecker reported 32 single-family building permits have been issued this year and currently three more applications in review. Also, 17 commercial/industrial projects have been issued and currently 10 pending. In Park & Rec, the Governor’s current orders regarding Covid-19 has put holds on all programs. Staff is implementing new software, Civic Rec during this slow activity period. There were no comments heard during Public Comments. During Council Comments, Council Member Raney thanked IT Specialist O’Connor for helping during tonight’s meeting. Mayor Kuntz reminded everyone to be mindful of social distancing and to wear a facial mask. City Administrator Busse stated the library is open for appointments to browse and use the internet. Appointments can be scheduled on Mondays, Wednesday, and Fridays between 12:00 noon and 3:45 p.m. and Tuesday and Thursdays from 4:00 – 5:45 p.m. At 8:50 p.m., Council Member Raney made a motion to adjourn the meeting, Council Member Dotson seconded the motion, with a roll call vote, all members voted aye in approval. Dated: December 7, 2020 Respectfully Submitted, Jeanette Clawson, Administrative Specialist