HomeMy Public PortalAbout08/02/06 CCM253
MEDINA CITY COUNCIL MEETING MINUTES OF AUGUST 2, 2006
The City Council of Medina, Minnesota met in regular session on August 2, 2006 at 7:00
p.m. in the City Hall Chambers. Mayor Workman presided.
I. ROLL CALL
Members present: Workman, Smith, Cavanaugh and Weir.
Members absent: Brinkman
Also present: City Attorney Ron Batty, City Engineer Tom Kellogg, Police Chief Ed
BeHand. City Planner Rose Lorsung, City Planner Consultant Sarah Schield, City
Administrator Chad Adams, Public Works Superintendent Joe Paumen, Finance
Director Jeanne Day, and Recording Secretary Lauren McKay.
II. PLEDGE OF ALLEGIANCE
III. ADDITIONS TO THE AGENDA
Adams asked to remove Item F, which will be addressed on August 15t.
Cavanaugh stated Randy Mayer would like to discuss access issues off of Highway 55.
Workman stated the issue could be brought up in the public input section.
The agenda was approved by consensus as revised.
IV. APPROVAL OF MINUTES
A. Approval of the July 18, 2006 Regular Council Meeting Minutes
B. Approval of the July 20, 2006 Special Council Meeting Minutes
On the July 18, 2006 minutes, Smith requested a revision on page 12, the fifth
paragraph, to change language to state that the tree will be lost if the trail was built
under the drip line.
Cavanaugh asked for a clarification to the corrections on page 1, in which the last
sentence should include the word "not," which will then read. "when property owners are
not seeking permits." He also asked to change on page seven, to change wording in
the second to the last paragraph to read "building rights used as a carat to get
developers to preserve trees."
Weir asked that a sentence be added to the end of the first paragraph that reads,
"because the Council should not be in the business of restricting trees from being
removed from a yard."
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Moved by Weir, seconded by Smith, to approve the July 18, 2006 regular City Council
meeting minutes as amended. Motion passed unanimously.
Moved by Weir, seconded by Cavanaugh, to approve the July 20, 2006 special City
Council meeting minutes as presented. Motion passed unanimously.
V. CONSENT AGENDA
Weir asked to remove Item D.
A. Resolution Granting Conditional Use Permit to 3072 Willow Drive — Jeffrey
& Kristin Evanson
B. Approve Fireworks Agreement with Melrose Pyrotechnics for Medina
Preservation Day
Approve Company/Financial Institution ACH Origination Agreement
C.
Donations
Moved by Smith, seconded by Weir, to approve the consent agenda, as amended.
Motion passed unanimously.
VI. COMMENTS
A. Comments from Citizens on Items not on the Agenda
Randy Mayer, 762 Highway 55, voiced his concerns regarding access and redesign of
Highway 55 and County Road 116. He stated the plan he reviewed showed a bow
access closure of his Highway 55 access, closure of his County Road 116 access, and
moving the Clydesdale access. He stated such closings would result in him having to
close his business.
Kellogg noted that the plan is still at the concept stage.
Weir stated she could attend the Highway 55 meeting and could speak to the issue.
Smith explained that business owners had all been informed in the past that the
Highway 55 accesses would be closed. She explained the real issue is County Road
116 and the County saying there cannot be a road or stoplight so close to Highway 55.
She stated the City should consider other roads and stoplights or stop signs.
Weir stated if the access does not pose a safety issue, the City could battle for such
intersections close to Highway 55.
Mayer stated in 1986 he gave up one access to keep an access, and in 1996, he was
aware of discussions about closing the other access. He stated he would never have
built his business without the assurance from Hennepin County, MNDot, and the City of
Medina that the accesses on Highway 55 would remain open.
Mayer noted that he took MNDot to court in 1986 and 1996 to fight for his accesses. He
mentioned several discussions surrounding the Highway 55 and 116 intersections and
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noted his preferences. He asked for the Council's support in his pursuit to keep his
accesses open.
Workman stated the City acknowledged his comments and would ensure that Staff
stays atop the issue.
Cavanaugh stated he agrees with Weir that the Council should support the 116 access
for Mayer's business. Smith added that the City should consider the Highway 55
Coalition's position and concerns. Mayer responded that he believes the Coalition has
problems with undeveloped accesses, not those that are developed, as his is.
Smith asked if there will be a median along Highway 55 between County Roads 116 and
101. Kellogg stated that is in the plans. Weir stated she wrote a memo saying the
proposed 2010 traffic light on Tamarack is inappropriate and will interfere with the flow
of traffic. She stated she believes Tamarack should be a cul-de-sac.
Kellogg stated that he wants to make sure that the map was generated by Hennepin
County that showed all access points on Highway 55. He stated it is relatively
meaningless in the long-term. He stated the City will be taking a clean and fresh look at
the issue.
B. Park Commission
Adams stated the August agenda is fairly light. He stated the County Road 19 trail
project would probably be discussed in September. He also added that the August
meeting might be cancelled. Smith stated the meeting should be cancelled if there are
not enough agenda items.
C. Planning Commission
Lorsung outlined the Planning Commission agenda for the Council.
VII. OLD BUSINESS
A. Ordinance Related to Tree Preservation and Replacement; Repealing
Sections 820.33, 828.09, 828.41, Amending Section 830.06 and adding new
Section 828.41
Weir stated that the ordinance meets the reasonableness standard, but does not
address the problem of old growth remnants. She stated this is an interim ordinance
and she is looking forward to developing incentives for developers to preserve trees.
Moved by Weir, seconded by Smith, to approve the Ordinance Related to Tree
Preservation and Replacement; Repealing Sections 820.33, 828.09, 828.41, Amending
Section 830.06 and adding new Section 828.41, as requested. Motion passed
unanimously.
B. Resolution Authorizing Publication of Tree Preservation and Replacement
Ordinance by Title & Summary
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Moved by Weir, seconded by Smith, to approve the Resolution Authorizing Publication
of Tree Preservation and Replacement Ordinance by Title & Summary, as requested.
Motion passed unanimously.
C. Ordinance Related to Signs, Repealing Sections 815.01 through 815.25 and
828.06, amending Sections 830.06, 831.07, 832.07, 833.07 and 834.07 and
adding new Sections 815.01 through 815.33
Weir asked regarding window signs, if window displays and signs with brand -name
logos would count as signs under the new ordinance. Lorsung stated that merchandise
with logos displayed in a window will not be considered signs.
Cavanaugh stated that the City needs to be careful about how the ordinance is
enforced.
Smith stated the ordinance has only been "cleaned up" and there are not many
substantive changes. Lorsung concurred that there are not many policy changes. She
added that Staff is comfortable with the changes.
Moved by Weir, seconded by Smith, to approve the Ordinance Related to Signs,
Repealing Sections 815.01 through 815.25 and 828.06, amending Sections 830.06
831.07, 832.07, 833.07 and 834.07 and adding new Sections 815.01 through 815.33, as
requested. Motion passed unanimously.
Smith asked Staff to come back with comparisons to other cities' ordinances.
D. Resolution Authorizing Publication of Sign Ordinance by Title & Summary
Moved by Smith, seconded by Weir, to approve Resolution Authorizing Publication of
Sign Ordinance by Title & Summary, as requested. Motion passed unanimously.
E. Ordinance Amending Section 825.69 — Concept Plan Review
Adams stated this is an ordinance amendment changing the notification area in
permanent rural areas to 5,000 feet. He stated the Planning Commission recommended
a 1,000-foot notice in all areas. Adams stated that there are no current regulations
guiding areas of notification for concept plans.
Smith voiced her approval of 5,000 feet. Weir stated 5,000 feet is excessive.
Cavanaugh stated that with a Concept Plan Review, he believes 1,000 feet is enough
and Weir agreed. Weir added that she would approve up to 2,000 feet.
Lorsung stated that Staff will have a considerable amount of more work notifying citizens
about Concept Plan Reviews if the 5,000 foot notification area is implemented. Weir
asked if the notification area will be increasing for all residences or just for those zoned
permanent rural.
Cavanaugh stated he would approve 2,000 feet, but only within the City limits. Lorsung
stated that the City is required to notify any residence within 300 feet for statutory
required public hearings, even if they are in a neighboring community.
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Lorsung clarified that the change will only affect permanent rural zoned properties.
Weir stated it comes back to if the notification area should be 1,000 feet for all Concept
Plan changes. Lorsung stated if a potential change warrants a Concept Plan Review, it
warrants a discussion.
The Council suggested that notification only be sent to Medina residents.
Smith noted that there have not been many concept plans that have come forward for
review in the past. and it will not be a huge additional amount of work. Adams agreed
that there may not be many concept plan reviews after the Comprehensive Plan is
approved, but staff is expecting several in coming months.
Weir stated she would support 2,000 feet for notifications and increasing fees
proportionate to the costs. Adams stated the ordinance will be published tomorrow and
he needs the strict changes to the language tonight; Or, is the Council asking Staff to
re -write the ordinance? Workman replied there is no hurry.
Lorsung asked if the 2,000 foot notification is only for rural residential properties or
exclusively RR (permanent rural) zoning. Weir stated her intent for the motion was that
the 2000 feet only apply to permanent rural. Workman suggested Staff straighten out
the changes
Moved by Weir, seconded by Smith, to table discussion regarding Ordinance Amending
Section 825.69 — Concept Plan Review until the next meeting, sending it back to Staff
for amendments. Motion passed unanimously.
VII1. NEW BUSINESS
D. Approve Plaque Recognizing Hamel Lions for Community Building
Donations
Weir and Workman thanked the Lions for their contribution. Workman asked about the
name on the building of the "Hamel Community Building" and why it is listed as the
"Medina Community Center" in literature. He stated the sign is incorrect and asked that
it be changed. Adams stated the City only produces literature with the "Hamel
Community Building" name.
Moved by Smith, seconded by Weir, to request a bid to change the naming of the
building to Medina. Motion passed unanimously.
Moved by Weir, seconded by Cavanaugh, to Approve Plaque Recognizing Hamel Lions
for Community Building Donations. Motion passed unanimously.
A. Excess Liability Insurance Premium — Tom Rerah, RJ Ahmann Co.
Tom Rerah, of RJ Ahmann Co., stated that the insurance has been provided by a
successful program of the League of Cities, but because of the statutory limit of liability,
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August 2, 2006
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the league asks the City to re -affirm their election regarding the limits of liability for the
upcoming policy period.
Rerah explained the statutory limitations on liability and outlined the City's options. He
explained that the first option is to waive the $300,000 statutory limit, and second option
is to keep the limit and buy an excess liability policy for $1 million. He stated that there
would be a maximum paid out of $2 million. He stated that in the past, the City waived
the $300,000 statutory minimum and has purchased $2 million excess coverage, which
is the broadest coverage.
He noted that wrongful death, personal injury, negligence, nuisance, and trespaes are
covered by the statutory cap. He noted that breach of contract. eminent
domain/condemnation, constitutional claims, or any federal claim based upon federal
statute is not covered by the statutory limit.
Workman asked for clarification about the history of the waiving of the $300,000 limit.
He stated he would rather have more coverage than less and asked about the premium
for such insurance.
Rerah stated the current liability portion of the City's premium is $25,000. He stated if
the City decides to reduce the limit and impose a $300,000 cap, the City would save
$900. He added the current premium for the $1 million umbrella is around $9000. He
stated if the umbrella is removed, the City will be saving $9,000 a year, but would only
have $1 million versus $2 million coverage. He stated if the City kept the $300,000 limit
and kept the umbrella, the premium for the umbrella would be approximately $7,800.
Workman suggested the City stay with the same coverage.
Workman stated that the City needs additional liability. Cavanaugh asked if the amity is
opening itself up to a larger claim by waiving the $300,000. Workman stated if someone
really does get hurt in a liability case, the city should take care of them beyond $3C0,000
He stated in the interest of fairness and to cover the City's risk as much as possible.
Moved by Weir, seconded by Smith, to approve Excess Liability Insurance Prerrium —
Tom Rerah, RJ Ahmann Co., as requested. Motion passed unanimously
B. Uptown Hamel Public Improvements — Tax Increment Finance District and
Special Assessment Discussion
Adams stated that Staff is looking for direction for Phase One of the public improvement
projects. He stated Staff is looking for direction on Phase 1. at the latest on August 15th
pertaining to moving forward with scheduling a special assessment hearing. He stated
Staff needs to provide a certification to the County by November 15th. He stated that the
public improvement plans initiated in November 2004, and the City has waited for more
development in the area before proceeding with an assessment hearing.
Adams noted that Phase Two of the plan would include moving forward with -camel
Road. He stated the third piece of discussion is the update on the Uptown Hamel sign.
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Dave Callister, of Ehlers & Associates, stated that his firm and the City are looking at
Uptown Hamel finances and have made some assumptions based on present market,
TIF, and costs involved in both Phase One and Phase Two.
Callister stated that there was a $1 million bond floated in October, 2005, to cover the
costs of the project. He stated there are two scenarios regarding the Sioux and Mill
Drive project.
Callister stated Scenario One involves assessing 46% of the project costs, which is
$481.000 worth of special assessments. He stated the City would have some initial
deficits in the first few years, and will likely be able to cover the deficit with some
inflationary increment. He stated if the full $481,000 is assessed. the City would be able
to cover cash flow fairly easily.
Callister stated that Scenario Two involves assessing 20% of project costs, which is
$231,000, and there would be a $32,000 deficit for the first 12 years. Cavanaugh asked
if the 12-year, $32,000 deficit would cover the difference between the $231,000
assessment and actual costs. Callister replied that it would.
Cavanaugh asked if the Farr project will be able to fund the difference on its own.
Callister replied that the Farr increment is included in the numbers for both scenarios.
Batty added that when Callister is discussing deficits, he is accounting for both all of the
increment and either the larger or smaller amount of special assessments.
Callister explained that the special assessments in these two scenarios are the variables
but the rest of the factors are constants. Batty explained that if the lesser of the
assessments is assessed, the deficit gets larger.
Callister stated the increment extends out for 26 years, and that he ran projections on it
for the full 26 years. Batty explained that any development in that district will pay
increment, which the City can capture for the remainder of the 26 years.
Cavanaugh asked about funding increment and if the City can still capture increment
once the original price is paid back. Callister replied that as long as the City has some
ongoing obligations, they can still keep the district open and collect the increments.
Batty explained that the City sold a 429 bond, and the rule in Minnesota is that all debt
must go to an election, except when the City sells a 429 bond. He added that the City
must then assess at least 20% as the statutory limit.
Cavanaugh asked if he has a conflict of interest for this issue since he owns property in
Uptown Hamel. Batty stated probably not. He stated it is not a quick "yes or no"
answer. Smith asked about the perception.
Workman stated he is comfortable with Cavanaugh discussing the TIF, but it may be
different when it comes down to a vote. Workman asked what decision the City needs
to make in order to move forward. He asked if the City adds to the debt and the timeline
for paying it off. Batty stated that is the second piece.
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Batty stated when the district was established in July, 2004, some timelines
running. He stated there was the "knock -down" period, in which some parcels fall
the district if nothing is done with them.
11
egan
• ut of
Batty stated the 5-year rule is the issue, which means the City must settle the bon • , sign
a contract, or pay the money to someone. He stated the city has 3 years left to pend
the money. He stated that if the City still wants to collect the increment over t e 26
years, they must spend the money in 5 years and as long as it is spent, the Ci r can
keep collecting the increment for the 26 years. He stated that the City ha - also
committed to projects that are putting the City into a deficit.
Batty added that the City can use the extra increment to relieve the assess ent.
Workman stated the original plan was to relieve the assessment with increment. dams
stated that it will still take 15 years for the assessment to be paid off even with th- first
scenario presented by Callister.
Adams noted that the second part of the policy is if the increment does come in, if the
City is willing to pay off the assessment, and then how long will the City def r the
payments. He added that up to a 7-year deferment was discussed in past yea s. He
stated there is a cash flow problem and that the City may have to depend . n the
inflationary value of the undeveloped property, which is not a popular risk many take.
Workman stated he will not count on inflation value.
Cavanaugh stated he would like the 7-year deferment. Callister explained that th- City
would have to front the costs if there were deferrals. Batty stated he recalls in the past,
the discussion of deferrals to be at 5 years.
Workman noted his support for Scenario One. Callister stated that under Scenari. One,
there would be a positive cash flow in 19 years, and with Scenario two, it would b: in 24
years. Workman noted his hope for more development in the district.
Batty stated the Council needs to direct staff regarding the details. He said that a public
hearing of the assessment must be held and the notices need to contain the det: ils of
about how much is assessed based on:
• Storm -water improvement which was discussed as being assessed on a squa e-foot
basis,
• The two roads, which was concluded it, could not be assessed over the entire istrict
but for benefited properties on the roads for a total of eight.
Adams stated that it is $481,000 that will be assessed as he just described. He -tated
the next issue is the rate of interest the City charges. Callister stated that he calc lated
the numbers based on 2% over the bond's coupon rate. Batty stated it would hav to be
decided over how many years. Callister responded it would be 15 years. Batty -tated
that the city needs to decide if deferments will be offered and at what interest rat-. He
stated the City can do so without interest, but that the time frame will have to be
decided. Batty stated that if all the businesses defer then the City will not have e ough
money.
Smith asked about the interest rate, which is 2% above the coupon rate. Batty .tated
that if the business does not take pay off the assessment, there is interest accrui g and
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the person will have to pay the principle plus the accrual. Batty stated that the rate
should not be so attractive that all people take the deferral. Workman stated that five
years is acceptable and if the business is sold, the bond is transferable to the next
owner.
Workman stated that the City must go with the original plan and not put Medina
taxpayers at risk.
Cavanaugh noted that he will abstain from any vote about assessing the improvements.
He stated that when it comes to the residents, who will be impacted the most, it makes
sense to have two different scenarios for residents versus businesses.
Workman stated that residents have the same land that is zoned the same way as the
rest of the land in the district and that they should look at it as parcels of land rather than
as residences versus businesses.
Cavanaugh stated that there are different taxes for residential versus business.
Workman stated that he does not want it to be unfair to one group or another especially
because the land is all the same and they are all property owners in the same special
district that was created to enhance the property value.
Weir asked if this assessment will force people out of their homes. Cavanaugh stated
there are some older people on the street that may be negatively affected. Workman
stated that many hearings were held and all residents understood the possibility of
special assessments.
Batty stated that he would like a single deferral, not one with distinctions for different
types of property values. Batty stated the district is special and it has to be assessed on
the zoning of the property. He stated that he has some concern that if one property is
used for residential versus commercial that the deferral should be uniform.
Workman stated that even with the 5-year deferral, there may be some problems with
cash flow.
Batty stated that the Council is discussing details for a resolution to be brought back and
so Staff will have time to prepare and send out notices.
Workman asked if there was any way the City could get involved if too many people
take the deferral, and if the City could put in the scenario emergency funding for cash
flow. Adams stated that there are contingency funds in place for such emergencies, but
they have typically been discussed being used for water. sewer, or other
needs/emergencies.
Callister stated that if the interest rate is too high, there may be too many pre -payments.
Workman suggested Staff look at interest rates and bring it back with a
recommendation. Workman asked if a lien is taken against the property if the
assessment is taken. Batty stated yes and those property owners would notice the
special assessment on their tax bill.
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Batty stated it could not be done retroactively. He stated if increment comes i to a
greater degree, the City can use it on an annual basis to relieve assessments He
stated that if increment comes in, the City can start canceling or reducing assessm nts.
Callister stated the other way to reduce assessments is to accumulate all assess ents
and if the City does have increment coming in, the remaining assessments co Id be
forgiven. Workman stated his concern is that they will be paying more if the TIF does
start coming in and the assessments are forgiven.
Workman stated that the Council needs to discuss deferment scenarios and the to -end
property owners versus the high -end property owners, and determine wh-t the
assessments will be per year. Batty stated Staff can come up with some t pical
assessment numbers.
Cavanaugh said if the City pays off the assessment, the City loses the opportu ity to
use the increment to fund that portion of the assessment. Adams stated that eve if all
property owners paid off all of their assessments, there would only be 46% paid o that
the City could not use, and that the City still needs to depend on 54% . f the
improvements to be paid through TIF. Batty stated that he is not too worried abo t not
having any use for the increment. He stated the next $1.5 million could be us d for
Hamel Road and there will be plenty of opportunity to use the increment.
Batty noted that the Council needs to consider that all the special assessment nu bers
are based on what can be justified to increase value of the property
Adams summarized that the Council is considering Scenario One and has reque•.ted a
2% or higher interest rate. He stated there has been some discussion about a -year
deferral. He stated that he is hearing that the Council would like Staff to look at some
numbers and come back with some recommendations.
Cavanaugh asked what the risk to the City is if a special assessment is put into affect
that is payable in 15 years, beyond the bond rate. He stated that the long r it is
stretched out, the longer the City has to use the TIF.
Cavanaugh stated that any buyer looking at a property would take a look at the taxes
and special assessments. He addressed property owners coming upon a windfall.
Batty stated that most special assessments do not offer deferrals and the City do-s not
have to offer a deferral. Workman asked why the City should offer a deferment when
the assessment is financed over 15 years.
Day explained that there is a $1 million bond and they are only assessing $480,0
that the cash flow problem arises when the City has to pay for the rest of the bon
stated that the assessment and TIF could be used to either pay off the bond or
improvements in the district.
•
0 and
. Day
make
Workman stated he is comfortable with the 46% number using increment chat is
projected and assessing property owners 15 year numbers using a reasonable i terest
rate with no deferral option. He stated if increment increases beyond debt servi . e, the
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City can make the determination to reduce the assessments. Batty stated the decision
with what to do with the additional increment could be decided on a yearly basis.
Callister asked if there is a statutory deferral for seniors. Batty replied yes, and there
are also deferrals for property owners within certain income limits. Callister stated that
assessment figures were run on 14 years, not 15 years. Workman clarified that it will
be 14 years, not 15. The Council also agreed that the assessment should go with the
property and goes with the property if it sells.
Adams asked about an existing property that is already developed. Batty replied that
the existing developments will be assessed. Cavanaugh asked why any property will
not have to pay an assessment. Weir stated that all properties would have to pay.
Batty stated Staff will bring back a resolution with what has been indicated. He stated
the first meeting in November will be the last opportunity to decide the assessment.
Adams stated one risk of assessing Phase 11 is that the City cannot assess up to the
46% like as in Phase I. He stated Staff is not looking for direction tonight on Phase Two
and explained because of the financial risk, it can probably wait a year.
Workman asked if the new Ryan development is in this TIF district and if the numbers
were calculated. Day stated they are in the district, but numbers were not calculated.
Workman asked if the money can be moved anywhere in the district. Batty stated that
the City has a specific agreement with Ryan and most of the money in that area is
locked up. Workman asked if surplus money from the Ryan area could be used within
the district. Batty replied it could.
Callister stated he ran a cash flow on Phase 11, and given the same assumptions as
Scenario 1 and 2 for Phase I, there is a considerable deficit. He stated the only thing
they suggested the Council consider is that there may be other sources of income. He
stated developers will look at City's commitment to fix roads, etc., before they will invest.
He stated there are other vehicles the City can use to fund Hamel Road, such as
additional increment, special assessment, property tax levy, or municipal state aid.
Callister noted the 5-year rule is important. He stated there are other options the City
has to complete the improvement before 2009.
Workman asked the discussion be tabled until a future meeting. Adams stated it is fine.
Moved by Weir, seconded by Smith, to table discussion on Phase II. Motion passed
unanimously.
C. Hamel Water System — Well No. 6 and Raw Water Supply Line
Adams stated that the City held off on the budgeted Well No. 6 last year and that the
City needs to move forward this year with the well and raw water supply line. He stated
Staff stated that the City can currently pay for the well and supply line, but may have to
increase the rate structure for the Hamel system in 2007 to fund.
Workman stated that the water rates need to be reviewed.
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Workman asked where the City will go for water after Well 6.
Richard Foster, of Bonestroo, Rosene, Anderlik and Associates explained that the e will
be one to two more wells in Hamel Legion Park and explained where they would go.
Workman stated he likes that the wells are on park property and is in favor of the well.
Foster mentioned that Well No. 6 has radium and explained how it will be eliminated.
Moved by Smith, seconded by Weir, to move forward with the design for the Hamel
Water System — Well No. 6 and Raw Water Supply Line, as requested. Motion passed
unanimously.
Smith asked if there will be programs and suggestions for water conservation.
Workman stated that it is included with major subdivisions. Weir asked if they could
prepare a conservation program that could be instituted for next year. Workman replied
that training needs to be instituted.
Workman stated it disturbed him that some of the sprinkler systems were being
plumbed from the inside, using Medina's water systems rather than from a project -yard
surface main in the new Cudd development. He asked that the planning staff address
the issue.
Weir suggested a watering plan be considered. Adams stated it has been considered
and Staff is looking for direction for such a plan in an ordinance revision. Workman
stated that will only apply to people on the City's water system, not to the majority of the
citizens who water off of their own systems.
Smith suggested educating citizens about the best way to water their lawns.
Weir stated that the ordinance should be changed to allow Staff to implement a water
conservation emergency plan. Paumen stated with the recent rainfall, the City should
be okay with their water supply. He stated that the City has been at 1.3 million gallons a
day, and the capacity of the wells now is 2.0 million gallons.
D. Metropolitan Council Environmental Services (MCES) II Surcharge Program
Adams stated that Staff has advised the Council about this in the past. He stated in
order to meet the September 15 deadline the City must submit a report in order to avoid
the surcharge.
Smith asked what the City found with the monitoring system. Kellogg stated that the
surcharge is based on an event in June 1996, and that the surcharge of $30,301
annually is based on the MCES calculation.
Workman asked what the City has to do to reduce the amount. Kellogg stated that the
City has 5 different scenarios and A and B make the most sense.
A. Peak flow mitigation expenses underway
B. Mitigation Charges More than Necessary
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Kellogg stated that the City will make sure the Met Council's numbers are accurate.
Workman asked the cost for the report. Kellogg stated that it will cost $6700.
Weir stated Option D is the most attractive.
Smith asked what was found in Independence. Kellogg stated Independence is putting
in their own meters and Medina will use the data from Independence to determine what
flow is coming in to the City.
Weir also asked about the leaking manholes. Kellogg stated those are a lesser priority,
but they will be documented and repaired. He stated larger leaks should be fixed first.
Moved by Weir, seconded by Cavanaugh, to initiate Metropolitan Council Environmental
Services (MCES) 11 Surcharge report, as requested. Motion passed unanimously.
Adams stated the funds would be coming out of the sanitary sewer fund.
E. Final Plat to Jan-Har Limited Partnership at 922 State Highway 55 (Adam's
Pest Control)
This item was considered after item S.
Schield stated that this item is being reviewed for final plat approval. She stated the
preliminary plat was approved on June 19th at the City Council meeting. She stated
Staff reviewed the final plat and besides the few conditions, the final plat did meet the
requirements of the preliminary plat.
Schield pointed out that in the conditions of approval, that the applicant understands the
risks of constructing a retaining wall in the location. Schield recommended condition
number six should be approved allowing the retaining wall to be kept in the position.
Schield stated after Staffs discussion, there are two more items to add to the
conditions, clarifying issues in the engineering memo:
1. A final plat is approved to allow the combination of the three lots into one lot in
accordance with the application and plans received by the City on June 19,
2006, and July 20, 2006.
2. The plans shall meet the conditions noted within the memo from the City
Engineer dated July 26, 2006, including the comments from Lance Hoff dated
July 25, 2006.
Smith stated that she is uncomfortable not having a condition regarding number 6 that
the applicant understands the wall in this area is at their own risk so if the City needs it
removed, they are covered. Schield stated she would revise condition number 6.
Weir recommended that condition number 6 and condition 12 be added.
Moved by Weir, seconded by Smith, to approve Final Plat to Jan-Har Limited
Partnership at 922 State Highway 55 (Adam's Pest Control), as amended. Motion
passed unanimously.
Medina City Council Meeting Minutes
August 2, 2006
266
This item will be discussed at the August 15th meeting.
G. Variance from side yard setback for property located at 400 Navaio Road
West — Mark & Deb Classen
This item was considered after item E and before item C.
Schield stated it is a variance from the 50-feet side yard setback that was recently
changed with the moratorium. She stated the applicant's request is to allow the addition
of a two -car garage onto their current three -car garage. She stated the current side yard
setback meets the current requirement, and before the moratorium was passed, it would
have met the setback requirement.
She stated that several residents brought up not being able to meet both the HOA
requirements and the City's codes. She stated the applicant submitted a hardship
request since no accessory buildings can be built on the property. She added that Staff
did not feel the hardship criteria were met. She stated that rather than granting
hardship, that Staff recommends the residents make a change with the HOA cover ants.
She stated the Planning Commission and Staff have recommended denial because no
hardship has been met. Schield added that looking at other zoning districts, the 50-foot
setback was formally accepted to maintain rural character of properties in such zoning.
Workman asked if the proposal was brought in before the moratorium. Schield said the
official application, proposal, and fees were received three weeks after the final approval
of the moratorium by the City Council. Workman stated he believes there was some
kind of hardship with the timing of the moratorium.
Lorsung stated the surveyor inquired three weeks before the moratorium was in place
and asked what needed to be done to get in the application before the moratorium was
in place. She noted that the surveyor said there would not be enough time to get the
application in before the moratorium.
Weir stated that if there are extenuating circumstances, the variance should be at least
1/2 or less than what the ordinance requires. She asked if the applicant could reduce
the size of the variance request.
Deb Classen, 400 Navajo Road West, stated the planning of the garage was begun in
November and December and they were trying to meet the setback and the
neighborhoods covenants. She stated that the request had to be submitted to the
neighborhood in February, when it was approved.
Weir stated there were some extenuating circumstances. Classen stated it was
approved in February but because of the road restriction in her neighborhood and the
developer could not come in until April.
Weir stated she still feels there is a hardship due to the timing of the moratorium. She
1 Medina City Council Meeting Minutes
August 2, 2006
267
asked if the Council would hear the hardships she believes the applicant has suffered if
the variance request was reduced to 25 feet or under.
Smith stated that the area is not rural and such a setback should not be required. She
stated she believes the area needs a new zone. She stated she believes the area is
more suited to lesser setbacks.
Weir outlined several hardship criteria, based on minimizing the variance to 25 feet.
• Hardship due to the timing of the moratorium;
• Timing of road restrictions, which created conditions over which the applicant
had no control:
• Granting the variance request will not allow the applicant special privileges, since
all applications that come in now will be after the moratorium;
• The variance requested is the minimum variance (at 25 feet), less than 1/2 the
side yard requirement;
• Variance will not be materially detrimental to the purposes of the ordinance or
property in the same zoning districts because the moratorium timing and
increase setbacks will not apply and the neighborhood does have smaller lots.
She stated she is having difficulty finding hardship criteria for Number two. Cavanaugh
asked if there were other properties with such garages. Classen stated that some
properties have tuck-unders, but due to their well, they could not build one.
Workman and Smith stated they will accept the 29 foot variance. Smith stated that if
she is able. she will make sure that the area is zoned and treated differently than the
rural area that the setback requirement referred to. Cavanaugh added that the City will
encounter such problems with smaller lots that are zoned rural residential.
Batty stated that the Council will recommend Staff drafting a resolution based on the
discussion which will come back to the Council. Batty clarified that Smith is stating that
such less-than-5-acre lots should not have been included in the ordinance, but that is
different than the application in front of the Council.
Moved by Cavanaugh, seconded by Smith, to authorize preparation of a resolution
approving the Variance from side yard setback for property located at 400 Navajo Road
West — Mark & Deb Classen). Motion passed unanimously.
Staff was directed to prepare an ordinance amendment pertaining setbacks for parcels
under five acres.
Lorsung stated such lots were discussed during the moratorium discussions.
Robert Nye, who lives at the property south of Classens, stated that he is in strong
support of passing the variance.
H. Approve Job Description for Public Works Foreman position
Adams stated this was discussed with Paumen and recommended for approval.
Cavanaugh left the meeting at 10:02 p.m.
j Medina City Council Meeting Minutes
August 2, 2006
268
Weir asked about page 3, using a typewriter and if the description should use a
computer. Paumen stated it should read computer.
Moved by Weir, seconded by Smith, to Approve the Job Description for Public Works
Foreman position, as requested. Motion Passed 3-0-1 (Cavanaugh absent).
I. Internal Promotion to Public Works Foreman position
Moved by Smith, seconded by Weir, to Approve Internal Promotion of Steve Scherer to
Public Works Foreman position; as requested. Motion passed 3-0-1 (Cavanaugh
absent).
J. Approve Job Description for Public Works Maintenance Worker position;
Post Job Opening
Cavanaugh returned to the meeting at 10:05 p.m.
Moved by Smith, seconded by Weir, to Approve Job Description for Public Works
Maintenance Worker position; Post Job Opening, as requested. Motion passed
unanimously.
Workman asked if this will be posted and Adams stated it will. Paumen stated he is
seeking someone who is experienced.
IX. CITY ADMINISTRATOR REPORT
A. Hunter Drive Trail Update
Adams deferred the discussion to the closed session.
B. Schedule Special Meeting — Budget Work Session — August 15, 2006 p
6:00 p.m. in City Hall
Adams stated the intent of the special meeting.
Moved by Weir, seconded by Smith, to Approve the Scheduling of a Special Meeting —
Budget Work Session — August 15, 2006 at 6:00 p.m. in City Hall as requested. Motion
passed unanimously.
Adams noted the event name change to "Medina Celebration Day" instead of
"Preservation Day." He noted that they are discussing a band, and that no funds have
been raised. He stated that more funds might have to be allocated for next year.
Workman suggested that the Council recruit fundraisers, but they cannot raise funds.
C. City Engineer Report
Kellogg reported that most of the projects are winding down except Target. He stated
that Uptown Hamel has a few things to tie up before the final fees are presented. He
Medina City Council Meeting Minutes
August 2, 2006
269
added that Target has several deadlines and commitments with Ryan Companies
coming due at the end of the month.
Cavanaugh asked about the phasing in about the rest of the stores. Kellogg stated that
there are two applications in now for free-standing buildings. Lorsung explained that
Office Max is being constructed, and two applications for three outlots have been
submitted. She noted several potential developers.
Workman brought up a potential development for Uptown Hamel. Lorsung stated there
are many interested people calling the City and information has been given out. She
outlined issues and problems with the site.
Workman commended the work on Sioux Drive. Adams stated that typically, adjacent
property owners will take care of the grass. Smith noted the stonework along Highway
101 and asked that the weeds be taken care of by the County or other entity.
Lorsung asked if the stamping on the stone could be changed to a different design.
Smith stated that the City wants consistency and it should not be changed.
X. MAYOR & CITY COUNCIL REPORTS
Workman noted that the National Night Out was enjoyable and it should be continued.
Smith stated that the members of the Council should try and entice their own
neighborhoods to participate in National Night Out. Smith suggested no Council
meetings be held on National Night Out in the future.
Smith stated that the City received a letter from Charles Nolan regarding the High Pointe
Ridge application and asked that the City Attorney be routed such correspondence.
Adams replied he received the letter this morning and it was provided to Batty
immediately. Lorsung stated that Staff is looking into the letter and apologized that it
was not addressed sooner. Adams stated it will be brought back on August 156' at the
meeting. Cavanaugh asked if the applicant was contacted. Lorsung stated they spoke
with the Applicant and the DNR. Lorsung stated an easement may be necessary.
Xl. APPROVAL TO PAY THE BILLS
Moved by Weir, seconded by Smith, to approve the bills, order check numbers 029698-
029737 for $540, 853.36, payroll check numbers 019941-019944 for $5.881.61. and
payroll electronic file transfers for $25,189.99. Motion passed unanimously.
Moved by Weir, seconded by Cavanaugh, to move to the closed session at 10:25 p.m.
Motion passed unanimously.
XII. CLOSED SESSION: ACQUISITION OF PROPERTY
The properties/easements discussed for acquisition are: 2755 Hunter Drive, 3025
Hunter Drive, 3045 Hunter Drive, 3212 Hunter Drive, and 4003 Apache Drive.
Medina City Council Meeting Minutes
August 2, 2006
270
City officials present at the meeting were City Attorney Ron Batty, City Engineer Tom
Kellogg, City Administrator Chad Adams. Public Works Superintendent Joe Paumen,
Mayor Workman, and Councilmembers Smith, Weir, and Cavanaugh.
Paumen and Kellogg exited the meeting at 11:00 p.m.
The meeting returned to open session at 11:13 p.m.
XIII. ADJOURN
Moved by Weir, seconded by Smith, to adjourn the rr eting/pt 11;1
Attest.
Chad M. Adams, City Administrator -Clerk
p.m.
Bruce//D. Workman, Mayor
Medina City Council Meeting Minutes
August 2, 2006
271
ORDER CHECKS - AUGUST 1, 2006
029698 ALLSTAR WIRELESS $55.00
029699 AMERICAN SUPPLY GROUP $91.46
029700 ASPEN MILLS $150.70
029701 BONESTROO, ROSENE, ANDERLIK $138,285.63
029702 BUFFALO BITUMINOUS $2,39/.78
029703 CLASSIC CLEANING $550.61
029704 COLLISION CORNER $1,197.15
029705 ERICKSON, ROLF ENT., INC $5,279.67
029706 EXXONMOBII $185.36
029707 GOPHER STATE ONE CALL $770.50
029708 HAMEL ELECTRIC, INC. $1,898.72
029709 HAWKINS INC $1,558.37
029710 HENNEPIN CO.TREAS.(J_gIL SVC.) $863.82
029711 KONICA MINOLTA BUS. SOLUTIONS $536.12
029711 LAK_E BUSINESS SUPPLY Y $119.98
029713 LANDFORM $8,207.77
029714 LAW ENFORCEMENT LABOR SERVICES $222.00
029715 LAWSON PRODUCTS, INC $93.20
029716 LONG LAKE, CITY OF $4,141.00
029717 MEDICA $212.00
029718 MEDICA CHOICE $18,473.32
029719 METRO.COUNCIL ENVIRO. SERVICES $9,575.38
029720 MINNESOTA STATE TREASURER $8,437.84
019721 NEXTEL COMMUNICATIONS $722.02
029722 OFFICE SUPPLY CONNECTION $176.26
029723 QWEST $254.91
029724 QWEST $5.05
029725 R ANDy'S r ANITATION $202.23
029726 REYNOLDS WELDING $55.29
029727 RICE LAKE CONST $325,791.00
029728 SONNYS AUTO $674.72
029729 STAR WEST $276.51
029730 STREICHER'S $1,225.95
029731 TALLEN & BAERTSCHI $3,875.00
029732 TRUGREEN CHEMLAWN (OSSEO) $763.61
029733 VERIZON WIRELESS $8.67
029734 WEST HENNEPIN AUTO S30.83
029735 WRIGHT-HENNEPIN ELECTRIC $2,126.19
029736 XCEL ENERGY $1,143.56
029737 XEROX CORPORATION $23.18
$540,85 3.6
272
PAYROLL CHECKS - JULY 24, 2006
019941 SCHERER. STEVEN T $1.704.64
019942 CONVERSE, KEITH A $1,632.73
019943 VIEAU, CECILIA M $1,023.29
019944 PAUMEN, JOSEPH D $1,520.95
EFT ADAMS, CHAD M. $1,108.50
EFT MCGILL, CHRISTOPHER R. $1,939.22
EFT HALL, DAVID M. $1,470.04
EFT DRESSEL, ROBERT P. $1,391.08
EFT BELL_AND, EDGAR J $1,149.49
EFT DINGMANN, IVAN W $1,401.20
EFT SULANDER, LAURA L. $1,215.96
EFT BOECKER, KEVIN D $1,578.60
EFT GREGORY, THOMAS $1,617.64
EFT LORSUNG, ROSE A $1,288.76
EFT NELSON, JASON $1,788.92
EFT KLISZCZ, DAVID A. $514.33
EFT VINCK, JOHN T $1,163.46
EFT FINKE, DUSTIN D. $1,042.16
EFT MAROHNIC, NICHOLAS $453.88
EFT DAY, JEANNE M. $1,872.10
EFT DOMINO, CHARMANE $1,083.09
EFT WUNSCH, JODI M. $910.66
$31,071.60
0