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06-08 98 CCCITY OF OTSEGO COUNCIL MEETING MINUTES JUNE 8, 1998 - 6:30PM 1. Mayor Larry Fournier will call meeting to order* Mayor Fournier called the meeting to order at 6:30PM a. Pledge of Allegiance Mayor Fournier led the Pledge of Allegiance. b. Roll Call Larry Fournier, Mayor, Council Members Vern Heidner, Mark Berning, Virginia Wendel and Suzanne Ackerman were present. John Harwood, City Engineer, Andrew MacArthur, City Attorney, Mike Robertson, City Administrator, Elaine Beatty, City Clerk/Zoning Administrator were also present. Dan Licht, Assistant City Planner and Judy Hudson, Deputy Clerk were absent. 2. Consider agenda approval. (Deletions or additions) CM Wendel asked to add report on River Rider Bus to 9.1.A. Council Business. She also questioned the Stander property in Island View that had been tabled, what happened with that? Mike Robertson explained that he and John Harwood met Mr. Stander on the site and Mr. Stander will get a cost estimate for the work that needs to be done. Mayor Fournier added under Engineering, 8.2. Discussion of Public Works Meeting. CM BERNING MOTIONED TO ADOPT THE AGENDA AS AMENDED. CM HEIDNER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 3. Consider Minutes: a. Regular Council Meeting of Mayes, 1998 CM Berning - Page 5, Line 1C - States CM Berning updated the Council on a recent change to Community Rec. Policy, etc. (Change "recent" toe roposed" 1 Mayor Fournier - Page 4, near the bottom. The Council did not agree to move the private street sign. (Change "sign„ to "light") Mayor Fournier - Last page before 9.6. Should read "On motion the Council Meeting was re -opened" before meeting was closed. MOTION BY CM BERNING TO ADOPT THE COUNCIL MINUTES OF MAY 26, 1998 AS AMENDED. CM ACKERMAN SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 4. Open Forum: (S minute limit) 4.1. Any Open Forum WALLY ODELL - Appeared and stated he has a publication from the University of Minnesota Landscaping School relating to cluster development which he feels is an important tool as it keeps infrastructure cost down, preserves open space, and a vital tool for development. (See attached information "Residential Cluster Development: Overview of Key Issues and Storm Water Management" that was distributed by Mr. Odell) CITY OF OTSEGO COUNCIL MEETING MINUTES - JUNE 8, 1998 AT 6:30PM -PAGE 2 - (No one else appeared on open forum) 5.1. Approve No. 98-15 - Resolution Vacating the Platted Drainage Easement on Lot 2, Block 1, Otsego Industrial Park. 5.2. Approve Certification of Local Performance Measures for Local Performance Aid Payable in 1999 ($4,107,673.) CM BERNING MOTIONED TO ADOPT THE CONSENT AGENDA, CM ACKERMAN SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. CM Heidner asked about the Certification of Local Performance Measures program. Elaine Beatty noted that we had set up performance measures for snow plowing and she will be compiling a report on it. 6. Dan Licht, Assistant City Planner (No Agenda Items for this Council Meeting) Mayor Fournier juIIl- A ahead to the City Engineers Agenda Items because of residents of Page Avenue being in the audience Re* Bike Trail Proiiect• 8. John Harwood, City Engineer: 8.1. Engineers update of Bike Trail Project John Harwood explained that he had a meeting RE: ISTEA funded Bike Trail Project on Page Avenue. He said the major thing the residents wanted to know is "Why were they not informed of this project"? In answer, he stated this was a long involved process covering multi -years. The Public Hearing was held in 1992. More public information would have been beneficial. He explained the East -vs- West side of Page for the bike trail. (See attached information from John Harwood). He stated that the most room for the bike trail is on the West side of the existing roadway. Mayor Fournier stated that the original bike trail plan was adopted on November 23, 1992. A Hearing was held before everyone lived there. He apologized to the residents for not notifying them sooner and stated that in the future more meetings will be held as the project approaches. He invited residents to share their concerns. Patrick Moonen Questions he wants answered. He has requested a copy 8757 Page of bike trail approval from Mr Robertson and Mr. Harwood. Administrator Robertson noted that the Public Hearing was September 21, 1992 and was continued to October 13, 1992 Park and Recs. Meeting. On November 23, 1992 it was approved at the City Council Meeting. On September 28, 1992 it was approved to be added as part of the Comprehensive Plan for Otsego. Page Avenue is not listed on the map for the Bike Trail Plan and there is not any information in the minutes or notes regarding Page Avenue Bike Trail. Administrator Robertson explained that the Park and Recs. Commission approved the plan and the Bike Trail Plan Document is the approval. He added that the plan does not say anything about Page Avenue. CITY OF OTSEGO COUNCIL MEETING MINUTES - JUNE 8, 1998 AT 6:30PM -PAGE 3 - Mr. Moonen requested copies of the Resolution approving the plan. He also questioned the legal setback from the right of way and said he thought it is 65'. Clerk Beatty noted that it is 35' setback from edge of the right of way of a local road (See Page 238 of Zoning Ordinance.) He asked if 1-1/2 inch of blacktop will be laid on the path? Mr. Harwood said 2 inches of asphalt. He stated that garbage trucks and snowplows, etc. will be using the path. Mr. Harwood stated the bike path is not intended for 9 -ton traffic. It is fine for paved shoulders. The City of Otsego maintains these paths. He stated that the speed limit is a problem. It is posted 40MPH and averages 60MPH. Mr. Harwood stated that an urban section of road can be changed. MOTION BY CM HEIDNER TO LOWER THE SPEED LIMIT FROM 40MPH TO 30MPH ON PAGE AVENUE N.E. FROM #39 TO 85TH STREET. SUZANNE ACKERMAN SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY Administrator Robertson explained that he has discussed hot spots for speeding with the Sheriffs Deputy and 96th and Page Ave is being looked at. Deputy Sheriff Jake Hermanson was present and noted he was patrolling the area more. CM Ackerman felt we need a stop sign at 88TH and Page North and South/East and West. Mr. Harwood stated we can request traffic counts as he was not sure how much traffic used the street. CM WENDEL MOTIONED TO PUT TWO STOP SIGNS IN (ONE NORTH AND ONE SOUTH ON 88TH AND PAGE). CM ACKERMAN SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. CM Heidner asked how many other stop signs are there? CM Ackerman stated two. The purpose of these signs is to slow traffic down. Resident asked if there was any consideration for lighting of the pathway? Mr. Harwood stated he encouraged street lights at all intersections, but the City does not have a formal street lighting policy. Who pays, is the issue. CM Heidner stated he has a problem with cobra style street lights and CM Ackerman agreed and stated lighting at City Hall is a lot better. CM Wendel stated that street lighting came up not long ago and she doesn't believe we have the money, or resources to pay for it and is against it. Resident spoke Asking if there are any plans for lighting with this project. Mayor Fournier stated it is not part of the project. CITY OF OTSEGO COUNCIL MEETING MINUTES - JUNE 8, 1998 AT 6:30PM -PAGE 4 - Resident spoke If this plan goes forward, I have questions. Interruption in utilities, will we be notified? Mr. Harwood stated that utility companies handle notification. The City does not control when and how it is done. CM Heidner asked John to tell the Utility Companies that we want the residents notified. Resident spoke Has the Post Office been notified of delay in mail`? Mr. Harwood did not expect any delay in mail delivery. Pat Hoppe I run a business out of my home. I'm licensed and governed by Wright Co. and needs access to the property at all times. Mr. Harwood stated there would be 2 to 3 hours where you will not be able to access your property. CM Heidner asked that residents be notified, so they can have a car out of the driveway. Mr. Harwood stated that we will provide notice to the residents and what the actual footage is to the West of the house. Jeff Bartheld, Park and Recs. Chair - stated the Park and Recs. Commission changed the bike path from Packard Ave. to Page Ave. one and one-half years ago because they thought it had more bike traffic. Doris Liesky If you move the road and take part of our driveway, we will need 85TH & Page a longer culvert. If ditch not changed, how will drainage be done under the road? Mr. Harwood said we are not planning on moving any driveways. CM Heidner stated they are not planning on changing drainage patterns at all. Will all driveways be reconstructed the same day? Mr. Harwood - Typically, the same day construction, and they are available by evening. Construction hours are 7 to 5, 5 -days a week, and sometimes you will drive on gravel during construction. Will drives be done by the end of the workday? My husband drives a semi. Where will he park? Mr. Harwood said it will be passable. Could another stop sign be put on 85TH ST to slow down traffic? Mr. Harwood said ultimately, 85TH ST will be a wider street with curb and gutter. He said design features such as curb and gutter tend to cause traffic to drive slower. Shiela Louisiana Asked about parking on Page. Answer: Won't be able to park there. Jim Woxland On Page, no grass between the bike path and road. What will keep a car from going down the bike path? Answer: No physical barriers. Engineer Harwood stated he prefers off-road bike path. You are widening the road so people can go faster if they want. CITY OF OTSEGO COUNCIL MEETING MINUTES - JUNE 8, 1998 AT 6:30PM -PAGE 5 - CM Wendel commented she lives on #37 everyday one-half dozen people are jogging/walking/biking. We are trying to give a place to ride. I would love to have the bike path on #37. Tim Woxland CM Wendel mentioned the bike path is for safety. Do you 8729 Page want people on the bike path with the driveways? Put path on the other side. CM Wendel said we would rather have it on the other side, if there was room. Engineer Harwood explained it is 14 feet from the East side of the bituminous to the property line. He said it is possible to build another lane for traffic on the West and the path on the East. CM Berning asked how much additional engineering work needs to be done? Engineer Harwood said just 2" of bituminous. CM Berning agreed that would be the way to go. CM Wendel said this path is paid for by MSA and Park funds. If we do extra work, who would pay? Engineer Harwood felt it would be eligible for State funding, but he will check this. Mayor Fournier agreed it is a safety issue with driveways. We need the questions answered and find out the cost of widening the road with a bike path on the East. Go North on Ohland with the project and work there until you can get this information. CM Heidner - If it costs $20,000. more ISTEA will pay 80% of the costs. Otsego would only pay $4,000. more and that is a good price for additional safety. CM BERNING MOTIONED TO WIDEN PAGE AVE NE TEN FEET (10') TO THE WEST CREATING A BIKE TRAIL ON THE EAST SIDE OF THE STREET, WITH AN ISTEA CHANGE ORDER NOT COSTING THE PARK AND TRAIL DEDICATION FEES OVER $5,000.00. CM ACKERMAN SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Jeff Bartheld and Tom Constant stated they are happy with the idea. CM Heidner noted that 3/4 of the residents on Page Ave. are here tonight and wanted to know if they would be happy with this change and a side trail? The audience consensus was yes, they were. A resident stated that on the corner of #39 and Page, there was a huge hole in their yard by utility company and asked when it would be closed up? It was noted it was part of the project and shouldn't take much longer. Mayor Fournier again apologized to the residents for lack of communication. CM HEIDNER MOTIONED TO HAVE THE CITY STAFF DEVELOPE A POLICY TO PROVIDE A FAIR AND ADEQUATE NOTICE TO RESIDENTS ON CITY PROJECTS. MAYOR FOURNIER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Engineer Harwood explained that the project would be on hold for a week or two while he is obtaining the ISTEA information necessary. Mayor Fournier asked how we are notifying people on the other side of the street'? CITY OF OTSEGO COUNCIL MEETING MINUTES - JUNE 8, 1998 AT 6:30PM -PAGE 6 - Engineer Harwood stated there will be no change on the East side of the street, but he will send a letter to the residents. He will wait until he is certain the project is a go. CM Heidner asked that an update of the project be placed in the Otsego View. City Clerk Beatty noted Jacquie Rognli is working on a story on ISTEA trails for the View now. 8.2. Discussion of Public Works Meeting A Public Works Meeting date was set for Wednesday, June 17, 1998 at 4PM . 8.2. Any other En 'neeringBusiness There was none 7. Andrew MacArthur, City Attorney: 7.1. (See 9.5. End of Agenda Closed Meeting) 7.2. Hearings for renewal of Liquor Licenses as follows- a. Riverwood Inn and i7onference Center * On -Sale Liquor & Wine Licenses The Public Hearing was opened by Mayor Fournier for Riverwood Inn and Conference Center for renewal of On -Sale and Wine Licenses. Clerk Beatty noted the proper publications/notices were completed. No one spoke from the public. CM HEIDNER MOTIONED TO CLOSE THE PUBLIC HEARING. CM BERNING SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY There was no Council Discussion. Attorney MacArthur stated he had reviewed the information submitted and it appears to be adequate. CM BERNING MOTIONED APPROVAL OF RIVERWOOD INN AND CONFERENCE CENTER RENEWAL OF ON -SALE LIQUOR AND WINE LICENSES. CM WENDEL SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. b. Riverview Liquorette/ Elk River, Inc_ * Off Sale Liquor License The Public Hearing was opened by Mayor Fournier for Riverview Liquorette/Elk River, Inc. for Off Sale Liquor License Renewal. Clerk Beatty noted the proper publication/notice was completed. No one from the public spoke. CM BERNING MOTIONED TO CLOSE THE PUBLIC HEARING. CM HEIDNER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. There was no Council discussion. Attorney MacArthur noted he had review the information submitted and it appears to be adequate. CM HEIDNER MOTIONED TO APPROVE RIVERVIEW LIQUORETTE/ELK RIVER, INC. FOR OFF SALE LIQUOR LICENSE RENEWAL. CM ACKERMAN SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. CITY OF OTSEGO COUNCIL MEETING MINUTES - JUNE 8, 1998 AT 6:30PM -PAGE 7- c. D & R Liquors * Off Sale Liquor License The Public Hearing was opened by Mayor Fournier. Clerk Beatty noted the proper publications, notices was completed. Deborah and Randal Carron, business owners were present, but did not speak. CM HEIDNER MOTIONED TO CLOSE THE PUBLIC HEARING. CM BERNING SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. There was no Council Discussion. Attorney MacArthur noted that he has reviewed the material submitted and it appears to be adequate. CM ACKERMAN MOTIONED TO GRANT THE RENEWAL OF THE OFF SALE LIQUOR LICENSE FOR D & R LIQUORS. CM WENDEL SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 7.3. Any other Legal Business None at this time 9. Council Items: 9-1- Any Council Business None at this time. 9.2. Mike Robertson, City Administrator - update: A. Discussion of Proposed Celebration Ordinance Mayor Fournier asked if the City needs this ordinance? CM Heidner noted it was intended to be geared towards the Albertville Snowmobile Races type of event and an ordinance is the only way to deal with it. The Council was in consensus that the ordinance was not for home parties. Attorney MacArthur explained that a bar or an organization will have yearly large parties and no control over it by the City. That is the purpose of this ordinance. CM Heidner - He would like to see the sections on private parties be deleted. Administrator Robertson and Attorney MacArthur can look at it. Administrator Robertson stated the way it is written, it can be interpreted to affect home parties of a certain size. Riverwood Conference Center and Miniature Golf, it was noted, that they are set up for large gatherings now. Page 2, Section 6. Change "C" of the proposed ordinance to differentiate. CM Wendel questioned B, Section 2, Special Event - Outdoor event of at least 100 individuals. She didn't feel we should have any number. Leave it off and have no number of individuals. Administrator Robertson - On the 45 days advanced notice, there may be problems initially. We can try to notice the first time, but they probably won't make 45 days. The Council directed the staff to change the ordinance and bring it back. B. Discussion of Wastewater Treatment Plant Finances The MPCA Memo was discussed by Mike Robertson. He noted that according to the MPCA it will be the end of November to receive final permit for the wastewater treatment plant. CM Heidner would like to see some kind of construction begin this year (1998). CITY OF OTSEGO COUNCIL MEETING MINUTES - JUNE 8, 1998 AT 6:30PM -PAGE 8 - He wanted to start on some of the items not affected by MPCA permits. He felt this could help the City by enabling developers to get started next year. This would generate cash and hook ups to help pay off the treatment plant. Mayor Fournier felt MPCA is now willing to work with us. Administrator Robertson noted that the City will run into cash flow difficulty because our previous Finance Director has put money out in four and five year commitments. The City has plenty of cash, but it is not all available to pay the design costs of the treatment plant and water system. City Accountant Gary Groen and Administrator Robertson believe that in September, October at the latest, we will run into a cash crunch. Administrator Robertson noted that City Financial Advisor Tom Truszinski will be arriving soon and asked that the Council review the information before he arrived. Robertson noted there were 3 options: 1. Bond for 9 million, which was an estimate of the total cost of the project. 2. Bond for 1-1/2 million, which was an estimate of the costs occurred in design, land acquisition, and initial start up costs. 3. Bond for 4-1/2 million, knowing that a second bond issue will need to be done next year. CM Wendel felt there was no alternative, but questioned the four and one-half million bonding option #3. When will we have to pay it back? Mr. Robertson stated over 20 years, and in the first two years the payments are paid from capitalized interest. Tom Truszinski arrived at 9PM-( Of Juran and Moody) He reviewed the bonding process with the Council. He stated that the interest rates are the same as February, approximately 4.10 to 5.20. percent. He explained bond insurance and that the underwriter pays for the bond rating costs. He said that federal law is, if you stay under five million for small bonds, you can earn money on the money borrowed. If you borrow over 5 million, you have to give any interest earned back to Uncle Sam. If you borrow over ten million, the bonds are no longer bank qualified. That means you have eliminated 3/4 or 90% of investors. It drives the interest rate up 1/4% or more. You want to stay under ten million and if possible, under five million. Mayor Fournier asked if you can do two bonds and stay under five million with each one. Tom Truszinski said yes, if done by the calendar year. As an example, four and one half million December of 1998 and four and one half million January of 1999, would be OK with the five million and ten million criteria per year. Other communities do this exact thing. Mayor Fournier asked about interest rates. If not a bond now, maybe the percentage would be higher. Tom stated he prefers not to delay issuing bonds on speculation on which way interest rates would go. Mayor Fournier asked what is the recommendation? CITY OF OTSEGO COUNCIL MEETING MINUTES - JUNE 8, 1998 AT 6:30PM -PAGE 9 - OPTION #l: Tom did not like. Nine million could be too little or too much bonds, and the City couldn't keep the interest.. OPTION #2: Tom likes - Its conservative, but the next issue you will exceed five million cap. OPTION #3: Toms preference, knowing you have to do the second bond issue. You lay up short, knowing you can cover expenses. You can invest out the remainder for a reasonable amount of return. City Accountant Gary Groen agreed that option 3 was the best choice. The Council discussed how Dayton would pay Otsego for it's share. Mayor Fournier stated we will meet with Dayton next week. CM Wendel asked if we need a Public Hearing on bonding? Robertson said the City held a Public Hearing in September, 1997 on this issue. Mayor Fournier asked Tom what action he needs from the Council? Tom said establish July 27th as a public sale date for any option you find suitable. The City will then have the money by the middle of August. The first interest payment would be June of 1999. After tonight's meeting, Gary Groen, Mike Robertson, and Tom Truzinski will meet to review the proposed bond structure. CM Heidner stated we should put the first payment out as long as possible. Tom said the requirement is within three years. CM Berning questioned the engineering costs and 7.5 million construction, what is the percentage of error? John Harwood said Fifteen percent, plus or minus, for sewer and water collection. Mike Robertson had asked Ted Field and he feels comfortable with the estimated 10% contingency. CM Berning asked about current interest rates on CD's and what bond rating we would have? Tom thought the bond rating would be BAA, but the City should insure the bonds, so the interest rate will be lower then a BAA rated bond. CM Heidner asked how much money has the City spent on this project so far? Robertson said $67,000. This does not include the Municipal Well. CM Wendel questioned how do we decide what Dayton pays? Answer: 1/5 of plant costs. CM Beming questioned Tom if we can use the 4.5 million bonding for another project if the sewer project does not occur? Tom said possibly a similar project. The consensus of the Council was that Option #3 was the best for bonding. Discussion was had on the next bond and when that would be done. Possibly January. Tom felt it was best to wait for the construction bids to be in. CITY OF OTSEGO COUNCIL MEETING MINUTES - JUNE 8, 1998 AT 6:30PM -PAGE 10 - MAYOR FOURNIER MOTIONED TO APPROVE OPTION #3 AND ADOPTION OF THE RESOLUTION WITH THE 27TH OF JULY AT 11AM FOR THE BOND SALE. COUNCIL WILL REVIEW THE BIDS AT 7:00 PM THAT EVENING. CM WENDEL SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. TOM TRUZINSKI STATED WE CAN APPROVE THIS RESOLUTION CONTINGENT ON ANDY MACARTHUR, CITY ATTORNEY REVIEWING IT. MAYOR FOURNIER AND CM WENDEL AGREED THAT THIS BE ADDED TO THE MOTION. APPROVED UNANIMOUSLY. Tom stated that Mary Ipple will be the bond Attorney. 9.3. Elaine Beatty, City Clerk -update No items this agenda 9.4. Consider Claims List for approval. n There were a few questions on the claims list. They were answered. CM WENDEL MOTIONED TO ADOPT THE CLAIMS LIST AS PRESENTED. CM ACKERMAN SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Regarding the crackfilling, John Harwood explained his memo. John explained that as we follow the road maintenance plan, it will go smoother. More discussion and questions by CM Heidner and CM Berning regarding road maintenance. John Harwood explained the plan for different roads. CM WENDEL MOTIONED TO APPROVE THE RECOMMENDATION FOR CRACKSEALING FOR 1998. CM ACKERMAN SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. CM ACKERMAN ADDED TO TAKE NELMARK OFF THE CRACKSEALING FOR 1998. CM WENDEL AGREED WITH IT. CARRIED UNANIMOUSLY. CM Heidner asked if they will do overlay next year? Answer: Spring crackfilling and then it will be overlaid. John Harwood listed three subdivisions as alternatives to get crackfilling. 9.5. City Attorney will request a closed session of the Council under Attorney Client priydege CM BERNING MOTIONED TO CLOSE THE COUNCIL MEETING FOR ATTORNEY CLIENT PRIVILEGE. CM ACKERMAN SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. CLOSED MEETING WAS HELD WITH ATTORNEY MAC ARTHUR AND COUNCIL UNDER ATTORNEY CLIENT PRIVILEGE CITY OF OTSEGO COUNCIL MEETING MINUTES - JUNE 8, 1998 AT 6:30PM -PAGE 11 - MAYOR FOURNIER MOTIONED AND CM WENDEL SECONDED TO OPEN THE MEETING. MOTION CARRIED UNANIMOUSLY. It was noted that the information for the River Rider Bus requested to be on the Agenda for discussion by CM Wendel will be added to the next CC Agenda of June 22, 1998 under Council Items. 9.6.Adjourn by 10 PM. CM ACKERMAN MOTIONED TO ADJOURN THE COUNCIL MEETING. CM WENDEL SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. ADJOURNED AT 10:40PM CITY OF OTSEGO: 4FN 6 RIE , MAYOR 7CI'6 S BY: ELA BEATTY, CITY CLERK 98 S