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HomeMy Public PortalAbout10/17/06 CCM359 MEDINA CITY COUNCIL MEETING MINUTES OF OCTOBER 17, 2006 The City Council of Medina, Minnesota met in regular session on October 17, 2006 at 7:00 p.m. in the City Hall Chambers. Mayor Workman presided. I. ROLL CALL Members present: Cavanaugh, Smith, Weir, and Workman. Members absent: Brinkman Also present: City Attorney Ron Batty, City Engineer Tom Kellogg, City Planner Rose Lorsung, City Planner Consultant Kendra Lindahl, City Administrator Chad Adams and Recording Secretary Lauren McKay. II. PLEDGE OF ALLEGIANCE III. ADDITIONS TO THE AGENDA There were none. IV. APPROVAL OF MINUTES A. Approval of the October 3, 2006 Regular City Council Meeting Minutes Cavanaugh noted on Page 5 the minutes should say, "Cavanaugh stated that he is generally opposed to Eminent Domain, however it appears to be appropriate in this instance and there is no question if the trail will go through and Eminent Domain would ensure everyone gets the same compensation. Under additions to the agenda, it was noted that Item F was pulled from the Consent Agenda. Weir also noted a correction on page two as well stating that she recommended 1000' in the Rural Residential Districts. Moved by Weir, seconded by Smith, to approve the October 3, 2006 regular City Council meeting minutes as amended. motion passed unanimously. Cavanaugh stated that before the meeting gets started, he would like to apologize for an oversight on his part. He said at the last meeting there was a discussion, which he should have opened to the audience. He stated it was an oversight that was brought to his attention by another member of the Council. He apologized for the oversight and stated it would not occur in the future. V. CONSENT AGENDA A. Ordinance Amending Sections 825.37, 825.43, 825.47, 825.77 and 827.33 Relating to Notice Requirements B. Resolution Authorizing Publication of Notice Ordinance by Title and Summary Medina City Council Meeting Minutes October 17, 2006 360 C. Resolution Granting Site Plan Approval with Variances for LORAM Maintenance of Way, Inc. D. Resolution Granting an Amended Conditional Use Permit to LORAM Maintenance of Way, Inc. E. Approval of Wetland Permit Application — LORAM Site Expansion F. Resolution Granting Final Plat of Medina Clydesdale Marketplace 2"d Addition on Property Generally Located Northwest of Minnesota Trunk Highway 55 and CSAH 101 G. Resolution Approving Planned Unit Development Amendment for Ryan Companies US Inc. for Wells Fargo Located in Medina Clydesdale Marketplace 2nd Addition H. Resolution Approving Lot Combination and Lot Division for Thomas Truxtun Morrison and Adrienne S. Morrison for Property Located at 1525 Hunter Drive I. Resolution Establishing 2006 General Election Absentee Ballot Board J. Resolution Approving a Premises Permit Renewal Application for the Hamel Lions Club to Conduct Lawful Charitable Gambling K. Award Hunter Drive Trail Project to Buffalo Bituminous. Inc. Approve Contract with Embedded Systems, Inc. for Siren Maintenance Moved by Smith, seconded by Weir, to approve the consent agenda. Motion passed unanimously. VI. Special Presentation A. Orono Schools Referendum — Jack Veach Jack Veach, from the Orono Schools, stated this is his 13th year on the school board, of which he has been the chair for 7 years. Veach explained that there had been several items up for referendum in the past four years, all of which failed. He said the first question was dealing with operating budget for the school district. He added that the district could not levy money the way Cities can. Veach stated that the school district is seeking to raise the amount of money allowable under the state cap, which would raise approximately $500 per student per year. He said the money would pay for heat, lighting and power, salaries, and benefits. Veach said that the school board has been working on communications and it is important that the voters pass the referendum. He explained that the district is hoping to preserve the excellent curriculum. He said it is difficult to initiate such fund raising activities. Veach said that the district, from 1999-2004, has cut approximately $3.6 million from its budgets. He said they pledged 71 % of funding to the classroom, consistent with Governor Pawlenty's plan. Veach said that the school district is in the top five in the State as far as student achievement, and 85% of students participate in co -curricular activities. He explained Medina City Council Meeting Minutes October 17, 2006 361 that the tax impact on a $500,000 home will be roughly $92 a year, or $7.67 a month. He said that 11 teachers could be eliminated if the referendum is not passed. He said he would like to ensure that councils and governments are aware of the situation and that voters can make an informed decision. Veach said the school district is an excellent attribute to property values and the community. He said the school board is very proud of the district and he is in front of the Council to educate voters about the issues. The Council thanked Veach for his presentation. VII. Comments A. Comments from Citizens on Items not on the Agenda There were none. B. Park Commission Adams stated there are several items on the Park Commission Agenda, including trail acquisition policy and philosophy. He said there has been some general discussion about easements for some projects. He also mentioned that the Commission would be discussing park dedication fees as a tool to acquire trail property and a review of the community survey results. C. Planning Commission Jeff Pederson, Planning Commissioner, said there was a fairly short agenda at the October meeting. He noted there was a lengthy discussion regarding the Bancor Group's concept plan proposing twin homes and a single-family residence. He said the Planning Commission's opinion of the proposed land -use was very favorable. Pederson mentioned the applicant for the Sunrise Cemetery asked to table the discussion. Lorsung noted the items for the next Planning Commission agenda. She noted several upcoming meetings for the Comprehensive Plan review. VIII. OLD BUSINESS A. Resolution Supporting Greenhouse Gas Emission Reduction Adams explained that the Council directed Staff to propose a resolution broadly based on Plymouth's resolution. He added that the Council atso asked Staff to develop an internal policy to try and reduce emission of granhouse gas. He noted that the Resolution before the Council is the preliminary draft of the broad resolution, but doesn't include more detailed internal policy implementation. Medina City Council Meeting Minutes October 17, 2006 362 Weir said she would eventually like to discuss codes that encourage LEED standards in building design. Smith noted how LEED buildings are determined. Weir said the Resolution in front of the Council is a good start. Cavanaugh said that he believes more money could be spent by the City, with what could be only marginal effects. He said such activities might not be beneficial for the City. Cavanaugh mentioned as an example paying more money for park benches made of recycled plastic. Adams noted such items are more of the internal policy implementation, not the broad resolution discussion, which was before the Council. Workman said that the City needs to put the money where their mouth is in trying to reduce greenhouse gases. He said if the Public believes in reducing greenhouse emissions, than the City needs to set the standard and take the lead. Smith said that, for example, the plastic lumber used for park benches that were used in Anoka County are more durable and long-range costs are much less. She said she thinks the list of actions that could be taken is a statement that the City is willing to consider such actions. Cavanaugh said he does not want to over commit to approve such items, due to higher costs, but he would like to consider all actions. Adams said the Resolution is a statement, but the future internal operation policy would be a work in progress over several years. Smith noted that the Parks Commission only uses recycled plastic. She also noted that the City should consider the long-range cost. Moved by Smith, seconded by Weir, to approve Resolution Supporting Greenhouse Gas Emission Reduction, as requested. Motion passed unanimously. IX. NEW BUSINESS A. County Road 19 Regional Trail Adams said that the Park Commission approved the trail on the East side of County Road 19, as well as working to keep the current trail and horse trail on the east. The Commission also recommended that the neighborhood trail connection on the west side of County Road 19 be included with the project. Pete Lemke, project manager for the County Road 19 Trail, introduced several people who are working on the trail. Lemke explained the project. He said the goal is to receive preliminary approval of Preliminary Layout 1 B, Preliminary Layout 2B, and Preliminary Layout 3A. Lemke stated that there has been a fair amount of public involvement in the project. He said citizens have commented via e-mail and U.S. mail. He also reviewed the schedule for the Council, pointing out right of way acquisition starting in January 2007, and construction starting in June 2008. Medina City Council Meeting Minutes October 17, 2006 363 Lemke explained the need for the trail project to provide safe travel for bikes and citizens around County Road 19. He said it would be constructed using MNDot and State Aid standards, and using federal aid and local funds. Lemke noted the size of the trail and two places within Medina that will be less than 10 feet wide. He said that horses, snowmobiling, and ATVs would not be allowed on the bituminous surface of the trail. He noted the maintenance schedule for the trail. He also noted signing for the trail, which will be provided by the Three Rivers Park District, such as stop signs, warning signs, and directional signs. Lemke explained the proposed construction schedule for Phase 1. He noted there would be a bridge over the creek, which would keep trail users off County Road 19. He explained the intersection of County Road 24 and 19, where the trail was moved next to County Road 19. He also noted the area where the trail would end and pointed out other trails that will be accessible at that point. Lemke clarified that 80% would be federally funded, and Hennepin County and State Aid Funds would pay for the rest. Lemke noted Phase 2 and the area that will be constructed Phase 2. He pointed out the park boundaries and where the trail would run. He explained that 30% would be federally funded, with the balance paid by Hennepin County. Lemke explained Preliminary Layout 3A. He noted that the layout was approved by the Lorretto City Council for the portion of the trail that is in Lorretto. He explained the portion of Phase 3 would be in the City of Medina. He said that the phase would be paid in the same way as the others. Jonathan Blanning, the planning manager for Three Rivers Park District, spoke to the Regional Trail Alignment plans within Baker Park Reserve. He said that the Park's master plan, which requires no more than 20% of the Park's land base be developed, will be updated in 2007. He said that there are no available acres in the Park for additional development. Blanning said as currently proposed, the regional trail going through Baker Park would require that trails of equal length will be removed. He said such trial elimination would be discussed at the master planning process. Cavanaugh asked if properties adjacent would be included in the Park. Blanning noted that such properties are called "in -holdings" and would be considered during the next master planning session. He explained how such in -holdings are considered. Cavanaugh asked if the in -holdings could be included in the acreage so no horse trails are eliminated. Blanning said such land would be included in the calculations. He also noted how wetlands are recalculated every year as well. Smith asksd if Blanning and Three Rivers are planning to keep horse trails. Blanning stated he could not commit to keeping or removing the horse trails at the present time. Smith,said she would not vote for the trail unless a horse trail is guaranteed on the east side of the park. MIedina City Council Meeting Minutes October 17, 2006 364 Weir noted the cross-country ski system in Baker Park and asked if the horses could use the cross-country ski trail during the summer. Blanning said that the trail is a hiking trail and said the issue of horse trails transcends the issue of the Regional trail. He explained that the regional trail timeline must move forward. He explained the Three Rivers Park District Board of Commissioners could not make any promises about horse trails until the master planning is done. Workman said the Commissioners could make the promise if they wanted to. He said he does not want to remove one trail for the sake of another. Smith noted that Medina has committed a lot of land to Baker Park. Lorsung explained that over 2200 acres from Medina, 15 — 20% of the City's land, is in Baker Park. Smith said that if the Park wants a trail through Medina, the Board should figure out a way to save the horse trails. Cavanaugh said there is a lot of funding from federal and county sources and the trail would benefit the residents of Medina greatly. He said he supports the trail and requested that the Park preserve the horse trail. Weir asked if an 8-foot trail could be approved and if some other hardcover could be removed. Boe Carlson, Governmental Affairs Administrator for Three Rivers Park District, said that only a portion of the County Road 19 project is in Baker Park. He said Three Rivers would be the operating and maintaining agency once the trail is built. Carlson added that as part of the request, they considered the alignment through the park and at this point, Hennepin County is looking at a proposed alignment so the design process could begin. He said Three Rivers had not adopted any alignments. He said he could pass the word on to the board regarding the horse trails. Carlson explained some facilities and areas through the park that could add land to reduce the possibility of the elimination of the horse trail. He said he and the other Staff would ensure the message that Medina would like to maintain the horse trails be communicated to the Three Rivers Parks Commission board. Weir said the Resolution could be conditioned on maintaining the horse trails in Baker Park. Workman asked if the horse trail would be removed without the County Road 19 project. Carlson said that they have not formally discussed eliminating the horse trails. He said that after looking at the numbers of the County Road 19 projects, the Commission has researched users on the trails and will consider all options. Workman asked why the Park would propose eliminating trails. Carlson said it is the Park's desire to maintain all trails. Medina City Council Meeting Minutes October 17, 2006 365 Cavanaugh asked if the in -holding properties could be included in the park. Carlson stated the properties could not be included until they are acquired and restored to more natural areas. Weir noted that one home on one of the properties was torn down and a larger home was re -built. She suggested the Council not count on such in -holding properties to help expand the park. Cavanaugh suggested one alternative is the City could use some of the park dedication fees to bring more land into the park. Weir said a recommendation could be made to approve the east side of the trail, but conditional on keeping the horse trails. Carlson said that Three Rivers does not want to eliminate any trails in the park, but would like to consider all alternatives. Smith said she believes in adding trails, but does not believe removing some trails in favor of others. Lemke noted right of way acquisitions will be determined during final design, and just compensation based on market value is given for property rights that are required. Cavanaugh asked if there would be full transparency regarding property appraisals. Lemke said the property value is determined after County would secure two appraisals. He added that the property owner is allowed one appraisal. Lemke mentioned the schedule and stressed that the 14 months for right of way acquisition is on the low end of the time that is needed. He said that there is not much time to secure the preliminary approvals needed in order to have the final design ready by March 2008. He said if the right of way is not secured, federal funds would be lost. He added that the projects could be approved one by one, rather than together. Workman opened the meeting up for public comment. Ann Thies, 1922 Willow Drive, reiterated that a regional trail is nice, but she supports Baker Park as a multi -use park. She said she would like a co -existing trail of turf and pavement for horseback riders. Dick Picard, of Dockside, said that his issue is the size of the path in front of his fence. He said the fence and trees would likely be removed for a 10-foot trail. He said he supports a path, but not one of such a large width. Lemke responded that the trail is intended to be eight feet wide in the area. He said it could not be paid for with state funding if it is less than eight feet in width. Weir stated she walked the trail from Lakeshore to the Park and that it does not need to be 10 feet wide. She said such a large trail would be intrusive. Cavanaugh said he would like to apply for a variance in that area for strollers. Smith and Weir agreed. Cavanaugh suggested 4-5 feet. Lemke replied he would not apply for grant funding for any trail less than eight feet, and a narrower trail would have to be funded by the City. He noted the Park Commission voted against funding a narrow trail. Medina City Council Meeting Minutes October 17, 2006 366 Robin Reid, former Park Commissioner, said the discussion was to keep the trail as narrow as possible. Workman asked if the first two segments could be approved, but not the segment in the park until there is clarification regarding the horse trails. Moved by Smith, seconded by Cavanaugh, to approve Phases 1 and 2, north of the park, as requested. Motion passed unanimously. Cavanaugh stated he is very interested in the trail and he would like to table the discussion until the discussion of the horse trail is had. Smith said a strong message should to be sent that the rural lifestyle of Medina would not be destroyed by a regional trail. She said she does support approving one trail at the expense of another. Smith said there does not need to be an eight -foot trail on Dockside. She said the park land should not be impacted so greatly. Weir suggested tabling the discussion until such details can be discussed. Workman suggested approving the preliminary planning, but not approving anything until discussions could be had. He said at that point, Staff could discuss the details. Lemke said he would have to come back in front of Medina for final approval before the trail is started. Moved by Weir, seconded by Cavanaugh, to approve the Resolution attached, with the condition of the horse trail, and more dialogue regarding the width of the local connector trail, and that Staff has the opportunity to amend the Resolution, as requested. Lemke said the Resolution presented is an example and a starting point. He said concerning the trail width on the west side, details will be worked out with Adams. Chris Sagsveen, of Hennepin County, said the west -side piece is not required by the federal grant requirement, and if the City does not want it, it does not have to be there. Motion passed unanimously. B. Concept Plan Review from Bancorp Group — Perimeter of Medina Golf and Country Club Lorsung stated the project is on the Medina Golf and Country Club Course and is located in the northeast corner of the City. She noted the current guiding for the property is public or semi-public. She said part of the area is scheduled for MUSA service pre- 2020. Lorsung showed a photo of the site and explained where it would be located. She noted the 3.5 units per acre is slightly above what is requested by the Met Council. Medina City Council Meeting Minutes October 17, 2006 367 Lorsung said Staff feels the timing of the project is overall the most important concern, and that the land -use for the property is appropriate. She said the development would require Comprehensive Plan amendments. Lorsung said there have been several concerns raised about County Road 116. She added the site has some attractive open space features and park areas. She noted that the City understands this proposal would be in addition to any future development of the 12-acre 9-hole portion of the golf course, which is already in the MUSA and zoned Multi - Family Residential. David Newman, 1529 94th Lane NE, Blaine, MN, said that he is the president of RGM Development. He said they are calling the townhomes Rolling Green, but the name could be changed. He explained RGM Development and the Bancor Group. Newman noted that he and Pflaum are trying to create excellent communities that will stand the test of time. He said there have been 10 years of discussion about development between his group and the golf course. He explained the history of the land and ownership of the property and golf course. He noted several problems that were found after an initial agreement with the property owner and golf course. He said several obstacles were hurdled before the development could move forward. Newman said he understands the City's problem with the timing, however, his contract expires on September 1, 2007 and he does not have time to wait until the Comprehensive Plan is approved. Newman explained the proposed twin homes and one single -residence home. He noted that there is a high water table and how that affects the properties. He said because of the natural features, the City has limited options that it can consider for the parcel. Newman noted where the homes and driveways would be built. He also noted areas that would be dedicated as park areas. He also noted several natural features of the land. Newman stated one of the largest issues is traffic. He said the development would tie in to existing intersections. He said in the right of way dedication, they are proposing some additional areas that could assist in resolving some traffic issues. Newman presented the home elevations and said the Country Club approved their plans. He noted the other developments in the area and said the proposed development is like an "island" between all the developed land. He said the uses and utilities are already established in the area. Newman explained the target demographic for his development and said there will be one maintenance facility for lawn care provided through the Homeowners Association. He also noted that the targeted demographic area would not likely be using the adjoining roads at peak hours. Medina City Council Meeting Minutes October 17, 2006 368 Newman explained that the development would ensure the Medina Country Club remains a golf course community for generations to come. He said his proposal is unique because everything around it has been planned and the utilities are ready for development. He also noted that there is an opportunity to expand some other housing options with the twin homes. He said moving the project forward now would allow for planning Highway 116 now rather than later. Reg Pederson, the past president of Medina Golf and Country Club, said the Hendry deal began over 20 years ago. He explained the Golf Course and Country Club's financial position and said this deal will ensure the Golf Course's future. He said that nearly 20% of the members are Medina members. Pederson explained that Hendry would like to sell the property at this point. He said if the development does not happen at this time, Hendry would request development rights to heavily develop the Par 3. He said that 235 members of the golf club would likely be lost and the Golf Course would have a problem attracting new members and maintaining current membership, which could mean losing the golf course all together. Smith said she likes the idea and would like the area to stay open space. Pederson said there are several things stopping the area from being the golf course. He explained the equity and non -equity partners of the course. He said 80% of the membership would not favor the area being anything other than a golf course. Smith asked if all current membership is non -equity. Pederson explained that only non - equity memberships are currently given and the memberships would not be re -sold as equity memberships. He said when equity memberships are relinquished the golf course buys them. Pederson said the membership of the Medina Golf and Country Club has a 40-year lease, which presents the property from being sold for redevelopment. Weir asked how far they are into the lease. He explained that they are 30 years left of the 40-year lease and there are three 15-year extensions after the 40-year period is up. Weir said it is a very desirable development and a good use of the land. She raised a concern about the traffic issues on 116 and the timing of the application. She said she would like to know more about Hendry's sunset date of September 2007. She said the development would stabilize the golf course and asked if it could be considered during the Comprehensive Plan discussions. Workman explained the difficulty in the timing of the issue and that it could probably not be included in the Comprehensive Plan discussions. Pederson said that Hendry would likely grant a 2-week extension, but would not grant an extension beyond that. Smith asked how long the Comprehensive Plan and Site Plan approval took for Bridgewater. Lorsung and Adams explained that it took nearly a year for approval. Cavanaugh noted that he liked the project to preserve the views of the golf course from 116. He said he would like to see such a project in the area. He noted his concern with ensuring that the golf course remains as -is. He said any change in the land for this Medina City Council Meeting Minutes October 17, 2006 369 development would require a comprehensive plan change for the multi -family use to be put back to public use. Cavanaugh noted that there would be many other groups who would like Comprehensive Plan Changes and his belief is Bancor would like to have approval before they have to wait in line for other projects. Workman noted that Brinkman supports the project. Smith said she believes some good developments have been lost and she supported approving this project and Comprehensive Plan Amendment. She noted that the issues of traffic on 116 and 55 must be addressed. She noted several amenities that were added with the Bridgewater development. Cavanaugh asked if the 20% equity members could purchase the non -equity 80%. Pederson explained that there would be no money to be made. Workman said that the intent of the membership is to maintain the land as a golf course. Pederson explained how the non -equity membership works which allows the member to play golf, have dinner at the club, and have amenities of the club. He added that there is no money to be made with a non -equity membership. Smith noted the tree ordinance and asked how the trees would be replaced. Workman said the City would eventually require such replacement. Smith also asked if the road going into Foxberry along 116 would be improved and if Shawnee Road to the north would be improved. Newman replied that after the neighborhood meetings and Planning Commission meeting, his engineers spoke with Hennepin County and is willing to make a significant contribution for some road improvements. He said the City and his group could use the opportunity to improve the roads. Workman noted his reluctance to change the Comprehensive Plan for one development, but said he supports the proposed development. Smith asked how the City could go ahead with such a Comprehensive Plan amendment with available Staff. Workman said the project could be outsourced. Adams said he has spoken toPlanntng Staff and some part-time or outside consultants could be utilized, but noted there is currently a transition with the Landform Consultant. He said Staff would have to ask for additional resources for the project if the City desired to keep pace with the.Comprehensive Plan timeline. Smith asked if the developer would pay such ousts. Adams noted that developer fees would help reimburse both consultant and additionsA staff time spent on the project, but that existing Staff would have to be involved and their available resources would be limited on other projects/priorities. Adams asked how the Comprehensive Plan and other projects would be compromised if the Bancpr project and other applications came forward with Comprehensive Plan amendments. Medina City Council Meeting Minutes October 17, 2006 370 Cavanaugh asked if it is fair to ask other proposals to wait until after the Comprehensive Plan. Smith asked if the project could be included earlier in the process of the Comprehensive Plan update. Weir stated she would like to take such an action. Workman suggested the conversation continue when Bancor comes back with a formal application. Smith said the discussion should happen because other projects could warrant such consideration as well. Workman said it does not matter until the formal application is made. Weir stated she does not want the proposal to slow down the Comprehensive Plan. Smith noted her dislike that property owners hold such power over such developers and projects. She said landowners should be more reasonable. Cavanaugh said that the Hamel Road concept is also excellent and the discussion about whether to include such projects in the Comp Plan needs to be had. C. Resolution Vacating a Portion of Drainage and Utility Easements Located Within Lots 2 and 3, Block 1, Medina Clydesdale Marketplace — Public Hearing Lorsung said the project is self-explanatory and there is a logical need for existing the current perimeter easements. She said Staff is comfortable with approving the vacation. Workman opened the public hearing at 9:09 p.m. Hearing no comment, Workman closed the public hearing at 9:09. Moved by Weir, seconded by Smith, to approve Resolution Vacating a Portion of Drainage and Utility Easements Located Within Lots 2 and 3, Block 1, Medina Clydesdale Marketplace, as requested. Motion passed unanimously. D. Water Service Agreement with City of Maple Plain Adams noted that Maple Plain has not yet approved the agreement, but he was informed they will discuss it at their October 23rd meeting. Moved by Weir, seconded by Smith, to approve the Water Service Agreement with City of Maple Plain, as requested. Motion passed unanimously. Smith suggested a letter of thanks be sent to Maple Plain after the agreement is approved. E. Award Project to Well No. 6 Adams said Staff is recommending the alternate bid with the Bergerson-Caswell bid. Kellogg said the alternate bid was to solicit competition and lower bids. He said both bidders were capable of completing the project. Adams pointed out that there are a couple more components related to the project relating to pump house improvements Medina City Council Meeting Minutes October 17, 2006 371 and raw water supply line connection that will come back to Council later for plan and spec approval. Kellogg explained that the other two pieces are a physical connection between the well and pumphouse and finishing the raw water line between the pumphouse and new treatment facility. He stated he anticipates the project would be brought forward in December of January for approval. Adams noted that it is critical to move on Well No. 6 since Well No. 7 will be needed in a few years. He noted Bonestroo and Staff are reviewing the possible need for another water tower to serve the City's needs in 2008. He noted the urgency to move forward on such a project. Moved by Smith, seconded by Weir, to approve Award Project to Well No. 6, and award the contract to Bergerson-Caswell for $131,055, as requested. Motion passed unanimously. Workman asked about Corcoran's water plans. Lindahl said Corcoran has approved a feasibility report study. F. 2007 Health Insurance Adams said the premiums are going up by 16%, and the Council directed Staff to cap the City contribution to a 10% increase. He said as a flexibility option, the City has proposed a Health Reimbursement Arrangement (HRA). Adams stated that the HRA would basically serve as a savings account for employees. He said the percentage increases could not be guaranteed because the City cannot guarantee how many employees would choose the HRA. Smith asked about the dental insurance increase. Adams said the rates would likely increase 3-5%, but it has not yet been confirmed in writing. Adams explained that the employee could not contribute any more to the HRA account than is allowed by the program. He explained how the program works for both single employees and families. He also explained the potential savings for the employees and noted the benefits of the HRA account. Adams stated there is a lot of interest in the program and employees have had several good questions. He stated staff is reviewing more options in 2008 for the program, including a possible Flexible Spending Account. Workman said the advantages are the employees begin shopping for medical services. Adams noted the City is considering partnering with other organizations or communities to cut down on administrative costs, or to look at establishing wellness programs. Workman asked what employees are covered. Adams stated all City employees would be covered. Medina City Council Meeting Minutes October 17, 2006 372 Workman said his concern is that if employees do not choose the HRA, they will have to take a pay cut to pay for the 16% increase in health care costs. Cavanaugh explained that most employees would save money with the HRA option. Smith said it is time for the City to consider other options and she supports the HRA. Adams suggested amending the resolution and said the City is trying to encourage employees to choose the HRA option. Workman asked the resolution to be amended to ensure the increase to employees is in line with past increases. Cavanaugh asked about the rates provided and the risk to the employee. Adams explained that the rates are premium amounts, not what the City is contributing to the amounts, and explained depending on the plan that employees are changing to there will be more some risk for some employees. Workman suggested the City only charge the employees an 8% increase. Smith asked how there could be an incentive for the HRA. Workman asked if the City employees have seen the proposed change. Lorsung explained she saw the plan but she shares the concern about the 16% increase since the HRA may not be the best plan for everyone. Jason Nelson, Police Sergeant, said that not many police officers have had the chance to review the plan due to a scheduling conflict during the informational session. It was also added that the Union has not yet reviewed the plan, but there has been interest in the HRA. Workman suggested that comparisons between the current plan and HRA should be made and offered to employees. Adams stated Finance Director Day has made such comparisons available and said she has made herself available for individual consultations. Workman suggested the City pay 8% of the increase for one year while employees have time to review the various insurance plans including the HRA. He asked that the information be provided to the Council earlier in advance of October. Adams said that such information is not always available well in advance, but that the Council discussed the rate increases in July and August work sessions, at which time staff was directed to limit the City cap to a 10% increase. Workman noted the other option is to subsidize the HRA option a bit by supplementing the deductible. Adams stated supplementing is not an option as outlined in the contract. He explained that LOGIS is negotiating that change in the contract for 2008, which would give cities more flexibility. He noted the City covering 8% of the regular premium increase would provide less concern or risk to employees. Smith suggested adopting the #2 option, but paying 8% of the increase. She suggested the City continue considering more insurance options in the future. Medina City Council Meeting Minutes October 17, 2006 373 Adams said the dental insurance must be decided upon. Workman said he does not see 100% dental coverage as essential. Adams said that reducing the City's contribution to the premium to 75% had been discussed in past years. Smith said that she does not receive free dental as a County employee. Adams noted that the rate is very competitive. Workman said the dental benefits should be discussed in the future but should stay the same for this year. Cavanaugh said he does not believe dental should be free. Adams said a future Flexible Spending Account may be able to pay for some dental expenses. Moved by Smith, seconded by Weir, to approve Resolution Establishing Health Reimbursement Arrangement (HRA) Plan, paying 8% of the increase in the regular health insurance premium, and approving the dental plan at 100% coverage for 2007, with consideration of reducing the 100% premium contribution for 2008, as amended. Motion passed unanimously. 1. Resolution Establishing Health Reimbursement Arrangement (HRA) Plan Moved by Weir, seconded by Cavanaugh, to approve Resolution Establishing Health Reimbursement Arrangement (HRA) Plan, as amended. Motion passed unanimously. X. CITY ADMINISTRATOR REPORT A. Agreement for Jazzercise Classes at Hamel Community Building Adams explained the terms of the contract. He said the schedule fits very well into the schedule of the Community Building. Smith said she believes it is an excellent use of the building Moved by Weir, seconded by Cavanaugh, to approve Agreement for Jazzercise Classes at Hamel Community Building, as requested. Motion passed unanimously. Adams noted a road petition was received for County Road 116, and the issue would be brought back on November 8th for general discussion. He stated a speed study has been requested. He said the Council could recommend to the County that a speed study be done, which could then request it from MNDot at MNDot's cost. He said the petition, with about 70 signatures, is also asking for more attention to the bike trail along the west side of 116. Smith noted that a trail should be built on the west side of 116. Adams said other issues surrounding the trail might need to be discussed. Weir asked about the petition from Willow Drive. Adams said the hearing would be held on November 8th and notices would be sent to affected property owners. Medina City Council Meeting Minutes October 17, 2006 374 Workman said he spoke with several residents on Hunter Drive who would be willing to discuss giving up part of their property for trail easements. He said he would ask Adams and Kellogg to propose a plan for the property owners to show them how the trail would look. He stated he does not believe it is unreasonable. Adams said that he and Kellogg have already been planning to meet with the residents. Doug Dickerson, Planning Commission, stated that one of the property owners, Bill Olson, had left messages for Joe Paumen, who is no longer with the City. He said the property owners favor the trail but they would like to know how it would look before they are willing to give up their property. Smith asked if the trail would be paved this fall. Workman noted it was approved in the consent agenda. Dickerson asked Adams to call the Olsons to follow up. Adams stated he was waiting to approve paving the segments before contacting the property owners. Smith said the council approved such action. Adams stated Intern Kelly Steele has been working on a finance project at about 20 hours a week. He also noted a budget workshop will be recommended for later in November. Adams mentioned that the rainwater park dirt pile is supposed to be removed by November 1st. He said one of the concerns he has recently heard is how people are notified that projects are going on. He said it would be difficult to notify all residents of the projects by mail due to the often uncertainty or delay in start dates, but that signs have been discussed, but would cost the City some money. Weir asked if an e-mail could be sent to Councilmembers in case of phone calls. Kellogg said the example given in Rainwater Park was unique and he explained the circumstances. Smith said an e-mail notification of such things would be very helpful and that she would like to ensure citizens are notified, whether by postcard or by sign. Adams said a sign could be helpful in some instances, but in the given example would have been difficult because approvals actually occurred this past spring. Smith said the City should think ahead and come up with a solution to inform residents. Weir suggested the Council be informed. Smith suggested that some information should be posted on the City's website. Adams said the members of the Open Space Task Force said that discussions with the consultant have been going well and the Task Force has recommended adding another person or two. He said there have been people who have expressed interest in being appointed. Cavanaugh said the one concern of the committee is that one of the people who is asking to be appointed is not a resident in Medina, but is a landowner. Smith asked if there is a representative of landowners who do not live in Medina. Lorsung said Susan Seeland would be the only representative. Lorsung said that the consultant believes it could help to have more than one Council representative on the Task Force as well. Cavanaugh said Susan Seeland and Weir would be excellent additions to the Task Force. Lorsung explained the Task Force's schedule. Weir noted she feels quite Medina City Council Meeting Minutes October 17, 2006 375 passionate about open space and recommended appointing Susan Seeland to the Task Force. Moved by Cavanaugh, seconded by Smith, to appoint Susan Seeland and Weir to the Open Space Committee. Motion passed unanimously. X. MAYOR & CITY COUNCIL REPORTS Weir noted that she would like to see the Park Commission write operational procedures that match the Planning Commission procedures. Workman agreed, but said the issue should be brought back up next year. Weir agreed. Smith said that while reviewing the community survey, she realized that Medina is not serving its businesses well. She said she thought it may be a good idea to have an Economic Development Commission made up of business owners and residents to help guide Medina's Economic and Business policies and development. Cavanaugh agreed and suggested that business -minded residents be appointed. Smith added that Economic Development includes protecting current business in addition to attracting new businesses. Workman suggested the issue be brought forward to the new City Council in January. Xl. APPROVAL TO PAY THE BILLS Moved by Smith, seconded by Cavanaugh, to approve the bills, order check numbers 029996-030063 for $257, 419.19, and payroll check numbers 019975-019977& EFT for $30, 922.08. Motion passed unanimously. XII. ADJOURN Moved by Weir, seconded by Smith, to adjoum e meeting at 10:06 p.m. Motion passed unanimously. ruce D. Workman, Mayor Attest: Chad M. Adams, City Administrator -Clerk Medina City Council Meeting Minutes October 17, 2006 376 (THIS PAGE LEFT BLANK INTENTIONALLY) Medina City Council Meeting Minutes October 17, 2006 377 ORDER C IECKS - OCT OBER 17, 2006 029996 AGGREGATE DIVISION $1,912.47 0/9997 ALLEGRA PRINT & IMAGING $1,471.72 029998 ALLSTAR ELECTRIC $335.19 079999 AMERICAN SUPPLY GROUP $252.20 030000 ASPEN MILLS $227.59 030001 BC_q/TRAINING & DEVELOPMENT $40.00 030002 BEST WESTERN HOTEL & REST. $197.10 030003 BIFF'S INC. $442.82 030004 BROCK WHITE $95.85 030005 BRYAN ROCK PRODUCTS $895.04 030006 BUDGET PRINTING $62.63 030007 BUFFALO BITUMINOUS $4,327.88 030008 CENTERPOINT ENERGY $372.42 030009 CHORLEY, MICHAEL $537.94 030010 CNH CAPITAL $487.99 030011 CR PLANNING $2,793.35 030012 CULLIGAN $78.65 030013 DEEP ROCK WATER COMPANY $68.00 030014 DEFENSIVE EDGE $7,915.08 030015 DEPARTMENT OF PUBLIC SAFETY $270.00 030016 DES LAURIERS & SONS $2,170.09 030017 EHLERS & ASSOC. $575.00 030018 ELAN FINANCIAL SERVICE $1,335.52 030019 FORTIN HARDWARE $235.86 030020 FRONTIER $58.82 030021 G. L. CONTRACTING $100,951.86 030022 GENUINE PARTS CO. - MPLS $105.42 030023 GOPHER SIGN CO $315.19 030024 GOPHER STATE ONE CALL $562.15 030075 HAMEL BUILDING CEN 1 ER $267.31 030026 HAMEL FIRE RELIEF ASSN. $41,474.00 030027 HARMON AUTOGLASS $483.93 030028 HAWKINS INC. $758.90 030029 HENNEPIN CO.TREASURER $62.36 030030 HENNEPIN COUNTY INFO.TECH.DEPT $848.19 030031 HENNEPIN COUNTY SHERIFF $175.45 030032 HENNEPIN COUNTY TREASURER $200.00 030033 HIGHWAY 55 RENTAL $1,077.62 030034 KODET ARCHITECTURAL GROUP LTD $11,439.70 030035 KONICA MINOLTA BUS. SOLUTIONS $2,288.35 030036 LONG LAKE, CITY OF $4,141.00 030037 MEDI.ACOM $84.95 030038 METRO WEST INSPECTION $16,623.35 030039 METRO.COUNCIL ENVIRO. SERVICES $9,575.38 030040 METROPOLITAN COUNCIL WASTEWTR $10,741.50 030041 MOTHERS MOTORS/LORETTO TOWING $20.00 030042 NELSON ELECTRIC MOTOR REPAIR $135.00 030043 PLEAA $15.00 030044 PLYMOUTH, CITY OF $25.00 030045 PRUDENTI_AL INSURANCE CO. OF AM $337.00 378 ORDER CHECKS - OCTOBER 17, 2006 (CONT'D) 030046 QWEST $1,961.43 030047 REED BUSINESS INFORMATION $129.32 030048 REID, JOHN E. & ASSOCIATES $550.00 030049 REYNOLDS WELDING $33.87 030050 STREICHER'S $15.90 030051 SUN PRESS & NEWSPAPERS $967.01 030052 SUNBURST LAWN & SNOW $5,751.00 030053 SUPERIOR STRIPING, INC. $300.00 030054 T-MOBILE $276.33 030055 TALLEN & BAERTSCHI $3,655.78 030056 TWIN CITY WATER CLINIC $40.00 030057 U.S. POSTAL SERVICE $1,517.58 030058 VERIZON WIRELESS $12.66 030059 VICTORY CORPS $95.41 030060 WASTE MANAGEMENT-TC WEST $3,395.84 030061 WEST HENNEPIN AUTO $168.42 030062 XCEL ENERGY $8,347.15 030063 ZEP MANUFACTURING $383.67 $257,419.19 PAYROLL CHECKS - OCTOBER 16, 2006 019975 SCHERER, STEVEN T $1,420.28 019976 CONVERSE, KEITH A $1,499.70 019977 VIEAU, CECILIA M $1,022.29 EFT ADAMS, CHAD M. $2,074.80 EFT SCHERER, STEVEN T $1.00 EFT MCGILL, CHRISTOPHER R. $1,475.44 EFT HALL, DAVID M. $1,459.81 EFT DRESSEL, ROBERT P. $1,270.92 EFT BF,LLAND, EDGAR J $1,249.49 EFT CONVERSE, KEITH A $1.00 EFT VIEAU, CECILIA M $1.00 EFT DINGMANN, IVAN W $1,833.23 EFT SULANDER, LAURA L. $1,215.96 EFT BOECKER, KEVIN D $1,475.54 EFT GREGORY, THOMAS $1,691.75 EFT LORSUNG, ROSE A $1,288.76 EFT NELSON, JASON $1,788.92 EFT KLISZCZ, DAVID A. $551.96 EFT VINCK, JOHN J. $1,336.15 EFT FINKS, DUSTIN D. $1,214.66 EFT MAROHNIC, NICHOLAS $453.88 EFT DAY, JEANNE M. $2,007.34 EFT DOMINO, CHARMANE $1,221.75 EFT WUNSCH, JODI M. $934.01 EFT STEELE, KELLY J. $190.03 EFT LEUER, GREGORY J $1,242.41 $30,922.08