City Council Meetings

MINUTES OF THE WATERTOWN CITY COUNCIL Regular Meeting Tuesday, February 13, 2018 1. Call to Order and Roll Call Pursuant to due call and notice thereof, the regular meeting of the Watertown City Council was called to order at 6:30 p.m. Tuesday, February 13, 2018 in the Council Chambers of City Hall by Mayor Steve Washburn. Council Members present: Washburn, Michael Walters, Deborah Everson, Lindsay Guetzkow and Adam Pawelk. City Staff present: City Administrator Shane Fineran, City Planner Mark Kaltsas, Utilities Superintendent Doug Kammerer, Public Services Superintendent Mike Dressel and City Clerk-Treasurer Lynn Tschudi. Guests included: Tammy Omdal with Northland Securities and Stacy Morse from the office of Tom Emmer. Those who signed in were: Mark Yanik and Evan Aljoe. 2. Adopt Agenda PAWELK MOVED, GUETZKOW SECONDED A MOTION TO ADOPT THE AGENDA AS PRESENTED. MOTION CARRIED 5-0. 3. Consent Agenda Discussion & Approval All items listed under the consent agenda are considered to be routine by the City Council and will be enacted by one motion on an affirmative vote by roll call of a majority of the members present. There will be no separate discussion of these items unless a Council member or citizen so requests, in which event, the item(s) will be removed and discussed prior to the adoption of the consent agenda. WALTERS MOVED, EVERSON SECONDED A MOTION TO APPROVE THE CONSENT AGENDA AS PRESENTED. MOTION CARRIED 5-0. A. Adopt a motion to approve City Council Work Session Minutes from January 23, 2018 B. Adopt a motion to approve City Council Meeting Minutes from January 23, 2018 C. Consider Resolution #2018-22, Authorizing Solicitation of Quotes for Sugarbush Lift Station Generator D. Consider Resolution #2018-25, Approving Use of Streets for Tour De Tonka E. Consider Resolution #2018-29, Approving Reduction in Letter of Credit for Laketown Homes F. Consider Resolution #2018-30, Declaring Surplus Equipment and Authorizing Sale 4. Open Forum 5. New / Old Business A. Update from Representative Tom Emmer’s Office Stacy Morse from Tom Emmer’s office gave an update on current topics and bills being discussed in Congress. B. Tax Increment Financing Plan – TIF Development District 6 Page 1 of 7  Fineran stated that there are two items related to the agenda item for TIF Development District 6: first to conduct a public hearing and the second to consider resolution #2018-25. Tammy Omdal, the financial consultant with Northland Securities took the podium. She clarified that there will be no specific action taken to assist a developer tonight, Council is simply declaring the TIF District. The type of district would be a redevelopment district, as Fineran mentioned. This allows the City to capture the property taxes for 26 years. The total tax increment project is a little over $300K; $125K used to reimburse the clinic (not on agenda) and $135K used for other redevelopment costs within the City. EVERSON OPENED A PUBLIC HEARING TO DISCUSS TIF DEVELOPMENT DISTRICT #6. GUETZKOW SECONDED MOTION. MOTION CARRIED 5-0. Fineran stated that Staff did not receive any oral or written comments and notice was sent to residents. EVERSON MOVED TO CLOSE THE PUBLIC HEARING DISCUSSING TIF DEVELOPMENT DISTRICT #6. GUETZKOW SECONDED THE MOTION. MOTION CARRIED 5-0. GUETZKOW MOVED, EVERSON SECONDED A MOTION TO ADOPT RESOLUTION 2018- 27 APPROVING THE MODIFICATION OF THE DEVELOPMENT PROGRAM FOR MUNICIPAL DEVELOPMENT DISTRICT NO. 2 AND APPROVING THE ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 2-6 WITHIN THE DEVELOPMENT DISTRICT AND THE ADOPTION OF THE TAX INCREMENT FINANCING PLAN RELATING TO THERETO WITH THE INCLUSION OF THE UPDATED INSPECTION REPORT. MOTION CARRIED 5-0. C. Site Plan for 313 Territorial Redevelopment/Lakeview Clinic City Planner Mark Kaltsas explained to Council that there are three actions to be considered: Rezoning of property from P-1 Public Building to Central Business District, Site plan review to consider a new commercial building, and a variance to allow a reduced parking setback from the adjacent residential property. Kaltsas said the applicant would like to construct a 6,000 square foot medical clinic on the 313 Territorial site relocating from their current location on Highway 25. The planning commission reviewed and and provided additional comment for Council. Parking and access would be via County Road 20 as well as off of Carter Street. Applicant has met the requirement for parking spaces. Applicant has revised plans to expand the sidewalk width along the building to seven feet. There would be no additional utilities or storm water requirements and applicant has noted that they can meet all comments and requirements. Kaltsas said Staff worked with applicant on the landscaping as well as architecture of the building. He said an ornamental iron fence was mentioned as part of the architecture in order to tie the design into the downtown area and focus on being a gateway business into the City. Kaltsas said most of the comments have been addressed by the applicant as it relates to the site plan. One item still up for discussion is the building material proposed to be used: LP Smart Siding. Kaltsas stated that this type of siding was not around when the Central Business District was created, so the Planning Commission is requiring stone or Page 2 of 7  brick on the front of the building to comply to downtown design standards. Washburn said as he was the liaison for the Planning Commission, they were very supportive as well as the applicant. Walters is in support of this project. Everson asked about rezoning the entire strip of County Road 20 and how that would affect those residential properties. Kaltsas said that tonight's discussion would not affect those homes, but the comprehensive plan would require those properties to be addressed. WALTERS MOVED, EVERSON SECONDED A MOTION TO ADOPT ORDINANCE NO. 405 AMENDING THE WATERTOWN CITY CODE, INCLUDING ZONING MAPS. MOTION CARRIED. 5-0. EVERSON MOVED, GUETZKOW SECONDED A MOTION TO ADOPT RESOLUTION 2018- 26 APPROVING SITE PLAN REVIEW AND A VARIANCE AS REQUESTED BY LAKEVIEW CLINIC FOR THE PROPERTY LOCATED AT 313 TERRITORIAL STREET EAST. MOTION CARRIED 5-0. D. Public Hearing for Adoption of Municipal Subsidy Policy Fineran stated that the Municipal Subsidy Policy is a statement the City needs to have in place when they are participating in redevelopment assistance of $150,000 or more. He noted this is a requirement by state statute and the EDA is recommending the Policy be adopted. Fineran informed the Council that the EDA is recommending language that states: maintaining 100% of existing jobs as well as new job creation equal to one full time employee. And lastly the minimum wage to meet would be the state minimum wage. Goals associated with evaluating and awarding a Business Subsidy shall be: 1. Increase in tax base 2. Job retention, wages at state min, and job creation of at least 1 FTE 3. Projects shall comply with the comprehensive plan 4. Improvements to public infrastructure and facilities such as roads, parks, or other City facilities shall be made 5. Impediments to development of land, removal of hazardous materials, poor soils or steep slopes 6. Promote higher paying jobs, increased benefits, attract other business or investment, encourage economic diversity, removal of blight, provide basic goods and services to resident Everson said the EDA had a good discussion on this policy. Pawelk asked if this language was reviewed by legal or adopted from State Statute language. Fineran said Briggs and Morgan assisted with the language as well as Northland Securities. Walters is glad we will have some criteria on the higher gift money. GUETZKOW MOTIONED TO OPEN A PUBLIC HEARING ON THE MUNICIPAL SUBSIDY Page 3 of 7  POLICY, PAWELK SECONDED. MOTION CARRIED 5-0. Fineran noted the City did not receive any comment on this matter. GUETZKOW MOTIONED TO CLOSE A PUBLIC HEARING ON THE MUNICIPAL SUBSIDY POLICY, PAWELK SECONDED. MOTION CARRIED 5-0. EVERSON MOVED, WALTERS SECONDED A MOTION TO ADOPT RESOLUTION 2018-28 ADOPTING A BUSINESS SUBSIDY POLICY. MOTION CARRIED 5-0. E. Equivalent Residential Unit Calculation for Utilities Fineran introduced the discussion and direction item on the City of Watertown’s equivalent residential unit calculation (ERU). This is a method of trying to equate the demand of utility services by commercial and retail businesses. He noted that sometimes this calculation for ERU's is based on number of employees, other times square footage. Fineran stated that it has come to his attention that our system could be outdated as compared to neighboring cities that are using the method employed by Metropolitan Council Environmental Services (MCES). Fineran said that our fees could be much higher than that of neighboring cities, putting us at a disadvantage. Fineran is asking Council for discussion and direction on this item. He would like to analyze current commercial users as well since it affects their monthly water usage rate. Washburn agreed with Staff recommendation and added Met Council knows sewer and water and we should take direction from them. He would like to see Staff go work on some of the comparisons. Pawelk is reluctant as it may affect some of our major users. He pointed out that we are funded differently than the Met Council as our needs are different. Fineran stated that this is a good time to take a look at this. The financial management plan is fairly conservative as far as new connections. Fineran is not expecting any future changes to be significant to current users. Guetzkow is in agreement for Staff to address the research in current retail businesses in Watertown. She would like to see us as close to the Met Council as possible. Any changes made to our current customers needs to be use driven rather than policy driven. Walters agreed and has felt that our ERU calculation has been inflated in the past. Washburn disagreed that our fees are high, we try to deliver a fair cost for a service. Walters said that Council has waived fees for the past two commercial businesses that have come forward and fears that this will be the expectation. Everson would like to see the research completed and how it would affect our budget in the future. GUETZKOW MOVED, PAWELK SECONDED A MOTION TO DIRECT STAFF TO EVALUATE ERU'S AND BRING BACK INFORMATION TO COUNCIL AT A LATER DATE. MOTION CARRIED 5-0. Page 4 of 7 F. Acquisition of Street Sweeper Fineran said the replacement of the current street sweeper was identified and budgeted in the 2018 Capital Investment Plan estimated at $250,000. The City used the state cooperative purchasing venture to obtain quotes for the sweeper. Fineran noted that two pieces were identified as comparable, one from Timco and one from Elgin. He said the new design will increase employee efficiency. Fineran showed a video of the City’s current sweeper capabilities. The video showed debris being left behind. The second video showed the number of staff required to complete the leaf removal process with the current machine. Fineran said the new piece of equipment would be an air sweeper versus a broom sweeper. Utilities SuperintendentKammerer compared the new equipment to a large vacuum that picks up all the leaves in one pass. He pointed out that storm drains can be cleaned out with an attachment on the sweeper. Guetzkow asked if this can be driven faster than the current machine. Kammerer said the new vehicle will drive road speed. Everson asked about the life expectancy. Kammerer said there will be less maintenance and life expectancy goal is 20 years. Walters noted that the current equipment video looked like nothing was being done to the leaves. Kammerer agreed that the process has been frustrating. He said estimated delivery is 90 days. Everson thanked Kammerer for his thorough research on used vehicles. GUETZKOW MOVED, EVERSON SECONDED A MOTION TO ADOPT RESOLUTION 2018- 23 AUTHORIZING THE ACQUISITION OF TYMCO 600 STREET SWEEPER. MOTION CARRIED 5-0. G. Acquisition of Mack Chassis and Appurtenant Equipment Fineran introduced the capital acquisition of a dump truck with a plow. The current vehicle is a 1999 with 40,000 miles and over 4,000 hours of use. This piece of equipment is budgeted in the CIP for $225,000, and the quote from the State Cooperative Purchasing Venture program came in at $217,772 plus tax title and license. Pawelk noted that a used piece of equipment with required add- ons would be just as expensive as a new one. Guetzkow thanked staff for their research and noted that the old truck uses much more salt than needed which is an added expense and hard on our roads. Walters said that this piece of equipment will be paid for with funds from the LGA. Washburn asked about the length of the truck. Public Services Superintendent Dressel said it is the same length as the old truck. Washburn asked about the capability of maneuvering in cul-de-sacs. Dressel said he went with a 9 foot blade versus a 10 foot blade to help with this as well. Dressel added it would be a $2,000 up charge to have a stainless steel box and the vendor told him to not go with that option for durability reasons. Pawelk asked about long term maintenance and rusting. Mike said that will be addressed at half way through the truck’s life along with lights and other maintenance. PAWELK MOVED, GUETZKOW SECONDED A MOTION TO ADOPT RESOLUTION 2018-24 AUTHORIZING THE ACQUISITION OF MACK 42FR CHASSIS AND APPERTUNANT EQUIPMENT. MOTION CARRIED 5-0. H. Capital Investment Plan Financing Strategy Page 5 of 7  Fineran introduced the discussion and direction item of financing the acquisitions of the street sweeper and dump truck. He noted that both funds do have adequate cash on hand, but it is important to investigate other financing options. These types of equipment also qualify for equipment certificates as well as financing from the vendors. Fineran said the local banks were contacted regarding the equipment certificates and both are interested with a rate of 2.6-3%. The dealer financing options range from 3.05%-3.45% in a lease to own program. Financing would close the gap in the future CIP fund starting in 2020. The utilities capital fund does not show a deficit until 2022. Fineran brought the attention to the examples in the packet showing purchases of the equipment using financing options. Walters said that some of the items in the Capital Improvement Plan are tentative which will affect balances. He hopes the LGA will continue in order to help fund our equipment. Everson asked why we are discussing financing options now when we have always used cash to pay in the past? Are we changing policy to include debt? Fineran said he is looking for clarification from Council and the financing is just an option and was provided to educate Council on the impact of the CIP in the future. Pawelk pointed out that financing would not close the gap completely in the CIP. He said the items that are eating up the largest percentage of the fund are the seal coating and the mill and overlay projects; not these smaller pieces of equipment. Pawelk said taking out a loan now is not going to solve the future problems. Fineran spoke to the mill and overlay and seal coating projects and stated that in the future bonding could be looked at to fund those larger projects. Guetzkow said that although there is a projected deficit in the future, she hopes there is an expansion in our tax base. She would also hope that small cities funding and LGA continues. Guetzkow calculated the interest expense on the street sweeper financing option to be over $14,000. She stated she would like to see us pay cash when we have it. Washburn echoed Guetzkow. He added that the Council has done a great job controlling operating costs. He also likes the fact that we pay cash when we can. Washburn would like to see the debt go down rather than up. Council agreed that cash will be paid for both pieces of equipment. 6. Other Reports Fineran updated connect on the Crow will occur on February 15th at 11:30 with 51 people in attendance. Guetzkow is meeting with Community Ed Advisory Board on Thursday February 15th. Walters updated that the comprehensive plan task force met last week. Page 6 of 7  Washburn updated that the Commission on Aging met and they are entertaining the idea of exploring CDA apartment complexes. He said that on March 19th the state will roll out a new criminal history system contracted by a reputable vendor. 7. Claims PAWELK MOVED, GUETZKOW SECONDED A MOTION TO ADOPT THE CLAIMS FOR 2017 & 2018. MOTION CARRIED 5-0. 8. Adjournment Members of the City Council and City staff may convene directly following the adjournment of the meeting at the Luce Line Lodge in a purely social event. Membes of the public are welcome to attend. EVERSON MOVED, PAWELK SECONDED A MOTION TO ADJOURN THE MEETING AT 8:41 P.M. MOTION CARRIED 5-0. Page 7 of 7