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HomeMy WebLinkAbout04.21.97 Council Minutes COUNCIL MINUTES REGULAR APRIL 21, 1997 1. The meeting was called to order by Mayor Ristow at 7:00 P.M.. Members Present: Ristow, Cordes, Fitch, Gamer, Strachan. Members Absent: None. Also Present: City Administrator Erar, Attorney Grannis. 2. Mayor Ristow led the audience and Council in the Pledge of Allegiance. 3. MOTION by Fitch, second by Gamer to approve the agenda with the addition of supplemental materials for Item 6c (IRB's for precision Engineering), Item 8b (G.O. Bonds for Water Reservoir), and Item 8c (Loader Bids). APIF, MOTION CARRIED. 4. Citizen Comments Pat Akin: Multiple vehicles parking on street between Elm and Spruce Streets on 8th Street. Creating traffic problems. Police Department will investigate. Administrator Erar: Introduced new staff members David Olson (Community Development Director) and Brenda Wendlandt (Human Resources Coordinator) 5. Consent Agenda MOTION by Gamer, second by Strachan to approve the Consent Agenda as follows: a) Approve minutes - 4/7 - Regular. b) Adopt RESOLUTION NO. R43-97 accepting donation of tree from Dakota Electric c) proclaim April 25th as Arbor Day and the month of Mayas Arbor Month d) Adopt RESOLUTION NO. R44-97 accepting bid/awarding contract for purchase of rapid rail box from MacQueen Equipment e) Approve replacement of panels on Parks and Recreation sign at the arena f) Approve appointment of Lee M. Mann as City Engineer g) Receive adopted 1997 Budget h) Approve CIP (Other City Projects and Parks) i) Approve repairs to City Garage door j) Approve payment of the bills as submitted. APIF, MOTION CARRIED. 6. Public Hearing - Eagles Club TIF District Financial Consultant Thomas Truszinski provided Council and audience members with information regarding the financial impact of establishing the proposed TIF District noting: the TIF District would allow the removal of two deteriorated buildings and the construction of a new building with an assessed market value of $622,600; would generate $32,000+ per year in TIF; the District would run for 15 years; the first 5 years of the district would be LGA/HACA penalty free (Option A); and the City could decertify before any penalties come due. There were no citizen comments. MOTION by Gamer, second by Cordes to close the public hearing. APIF, MOTION CARRIED. MOTION by Gamer, second by Strachan to adopt RESOLUTION NO. R4s-97 establishing TIF District 13 and approving and adopting a tax increment financing plan. APIF, MOTION CARRIED. 7. Public Hearing - Amend Original Downtown Redevelopment District Consultant Truszinski stated that the action being presented for Council consideration was to amend, not extend, the original district. The purpose of the amendment was to eliminate a blighted building and aid in the construction of a restaurant on the northwest corner of the intersection of Third and Spruce Streets. Discussion followed relating to the tax impact/liability on the City if the restaurant would fail. It was noted that taxes were the responsibility of the property owner and, since financing was established on a "pay as you go" basis, there would be no tax liability for the City. There was no public input. MOTION by Gamer, second by Fitch to close the public hearing. APIF, MOTION CARRIED. MOTION by Cordes, second by Gamer to adopt RESOLUTION NO. R46-97 approving the amendment to the redevelopment plan for the Original Downtown Redevelopment District. APIF, MOTION CARRIED. 8. Public Hearing - Precision Engineering Industrial Revenue Bonds Verlane Endorf of Dorsey and Whitney and Dave Hawkinson of Precision Engineering were present to answer questions and concerns of Council and audience members. The $2 million bond would be used to construct and complete a 40,000 square foot expansion of precision Engineering in the Industrial. The bonds will be backed by a letter of credit from First Star Bank and the City has no financial obligation for repayment of the bonds although City approval of the bond sale is a legal requirement. There was no public comment given. MOTION Gamer, second by Cordes to close the public hearing. APIF, MOTION CARRIED. MOTION by Strachan, second by Cordes to adopt RESOLUTION NO. R47-97 authorizing the issuance of bonds on behalf of precision Engineering. APIF, MOTION CARRIED. 9. South Suburban Medical Center Expansion/Elm Street Extension Engineer Glenn Cook presented the request by South Suburban for City construction of street and utility improvements necessary for expansion of their facility. The medical center signed a petition which provides for all expenses incurred in producing the feasibility study and constructing the improvements to be paid by South Suburban. Council requested that property owners adjacent to the proposed Elm Street extension be asked if they prefer the street to end in a cul de sac or have direct access to Highway 3 from Elm Street. MOTION by Gamer, second by Fitch to adopt RESOLUTION NO. R48-97 authorizing preparation of a feasibility study for South Suburban Medical Expansion street and utility project. APIF, MOTION CARRIED. 10. Public Improvement/Capital Project Schedule Process City Administrator Erar stated that the creation of the document was in response to confusion regarding the order of steps in the improvement project process. It was noted that Council approval of the City CIP was, in effect, approval of the preparation of feasibility studies for the various projects. The feasibility studies would be prepared and presented as time and the urgency of the projects dictated. MOTION by Gamer, second by Cordes to approve the process as presented. APIF, MOTION CARRIED. 1l. Water Reservoir Bonds Finance Director Roland and Consultant Truszinski informed Council that 5 bids had been received for the sale of the bonds and that the City had received a very favorable interest rate. Mr. Truszinski also informed Council that the City had received a AAA rating, which was a very positive sign for the City. Water Board Chair Robert Shirley stated that the Water Board was very pleased with the bid results and recommended approval of the bond sale. Member Fitch gave credit to the Water Board for their fiscal responsibility in planning ahead and saving monies to help in the repayment of the bonds. MOTION by Gamer, second by Strachan to adopt RESOLUTION NO. R49-97 awarding the sale of G.O. Revenue Bonds for the water reservoir site acquisition and construction to Piper Jaffrey at the net interest rate of 5.39%. APIF, MOTION CARRIED. 12. Accept Bids/Award Contract for Front End Loader Finance Director Roland stated that three bids had been received for purchase of the front end loader and the apparent low bid was received from St. Joseph Equipment for a Case loader. It was noted that the budget had set aside $150,000 for the purchase and the bid of St. Joseph Equipment had come in at $140,011. Since the bid had come in lower than anticipated, Ms. Roland stated excess funds would be used to pay down the $155,000 Certificate of Indebtedness for Equipment bonds. Questions regarding the pros and cons of purchasing the Case loader versus the John Deere model were raised and discussed. Representatives from both manufacturers were present and provided their input in the discussion. MOTION by Gamer, second by Strachan to adopt RESOLUTION NO. R50-97 accepting the bids and awarding the contract for the purchase of a front end loader to St. Joseph Equipment. APIF, MOTION CARRIED. MOTION by Gamer, second by Cordes to adopt RESOLUTION NO. RSOa-97 authorizing $155,000 Certificate of Indebtedness for Equipment purchase. APIF, MOTION CARRIED. 13. Industrial Park Phase II Assessments. Finance Director Roland informed Council that verbal waivers of hearing had been received from all affected property owners. She also noted that a sentence in the proposed resolution adopting the assessment roll needed to be added. MOTION by Fitch, second by Gamer to adopt RESOLUTION NO. RSl-97 adopting assessments for Industrial park Phase II contingent upon receiving written waivers from affected property owners. APIF, MOTION CARRIED. 14. Henderson Area Storm Sewer Project Engineer Glenn Cook stated the project was part of the 1993 Facilities Plan and was designed to reduce groundwater levels in the Henderson area. He reviewed the various aspects of the project. Of the total estimated project cost of $397,900, $91,200 would be assessed. Preliminary assessments indicate a per lot assessment of $1,531 for residential property and $6,568 per acre for commercial property. MnDOT may contribute some funding for the project, however, those monies may not be available until a later date which would delay the project. At this point, Council took a 5 minute recess. Discussion regarding several properties being assessed for both the Henderson project and the Asp Street project took place. While there were properties which would be assessed for both projects, those properties would not be assessed twice for the same improvement (i.e., storm sewer, street improvements, etc.). A question was raised as to whether storm water utility funds could be used to offset some of the assessment. Staff responded that those funds would be used to fund the City's portion of the project, but not individual assessments. MOTION by Fitch, second by Cordes to adopt RESOLUTION NO. RS2-97 accepting the feasibility report for Henderson Area Storm Sewer project and setting the public hearing date for May 19, 1997. VOTING FOR: Fitch, Strachan, Ristow, Cordes. ABSTAIN: Gamer. MOTION CARRIED. 15. Air Space Safety Height Ordinance Planning Coordinator Smick noted that the proposed ordinance was part of a Metropolitan Council requirement for the MUSA/Comprehensive Plan amendment. Both the Planning Commission and City Attorney had reviewed and approved the amendment. MOTION by Strachan, second by Gamer to adopt ORDINANCE NO. 097-394 adding building height regulations for airspace safety to Title 10, Chapter 5 of the City Code. APIF, MOTION CARRIED. 16. Roundtable Councilmember Fitch: The Fire Department has been receiving numerous grass fire calls. Would like public be mindful of the dry conditions and potential for fires. Mayor Ristow: Has received comments from residents concerned about response time of fire/rescue equipment is trains would be blocking railroad crossings at time of emergency. - Received request from Dawn Johnson of PARAC to meet with a couple of Councilmembers to discuss park funding issues. - Middle School swimming pool groundbreaking ceremony on May 5th at 4:30 P.M.. - City Weed Inspector needs to be delegated for 1997 growing season. 17. The Council adjourned the regular meeting at 9:23 prior to beginning Executive Session. Respectfully submitted, Mary Hanson Clerk/Typist