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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." Medina City Council Meeting Minutes August 2, 2006 254 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 Medina City Council Meeting Minutes August 2, 2006 255 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 Medina City Council Meeting Minutes August 2, 2006 256 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. Medina City Council Meeting Minutes August 2. 2006 257 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, Medina City Council Meeting Minute August 2, 2006 258 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. Medina City Council Meeting Minutes August 2, 2006 259 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. Medina City Council Meeting Minutes August 2, 2006 260 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 Medina City Council Meeting Minutes August 2, 2006 261 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. Medina City Council Meeting Minutes August 2, 2006 262 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 Medina City Council Meeting Minutes August 2, 2006 263 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. Medina City Council Meeting Minutes August 2, 2006 264 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 Medina City Council Meeting Minutes August 2, 2006 265 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