February 17, 2015 Council Minutes






FEBRUARY 17, 2015 – 7:30 PM



  1. CALL TO ORDER - Mayor Williamson called the meeting to order at 7:31 p.m.
  2. ROLL CALL – Hughes, Bren, Horton, Williamson.
  3. INTRODUCTIONS Williamson introduced the council and staff to the public. Administrator Tolsma, Clerk Lewin, Representative Brian Reilly from Ehlers, Planning Commissioner Mason.
  5. ADOPT AGENDA – Tolsma said there is a miscellaneous item requiring no action. Williamson recommends it be placed under Reports.   Hughes makes a motion and Horton seconds to adopt the agenda. All votes ayes, motion carries.
  6. ADOPT CONSENT AGENDA – Bren makes a motion and Hughes seconds to adopt the consent agenda. All votes ayes, motion carries.
    1. City Council Regular Meeting Minutes from February 2, 2015
    2. Administration Committee Minutes from February 10, 2015
  7. PUBLIC FORUM – No one
    1. Resolution 15-10: $1,830,000 General Obligation Bond Issuance
  1. Preliminary Official Statement – Brian Reilly said there is a draft resolution in the packet and he will discuss his handout. Reilly said the bond is for street lights, a lift station, street projects and storm water. He said the city’s rating was updated to a AA+. He said five bids were received and Raymond James provided the best bid at under 1.9% through 2030. He said the size of the issue can be reduced due to lower upfront compensation. Reilly said the key things are proximity to metro for employment, a strong fund balance and policies in place to maintain the fund balance, per capita income and low debt.


    Reilley recommends the Raymond James proposal. Williamson said he had questions about process and procedure and he discussed this with the administrator. He thinks this is beneficial as it will restore the fund balances at low cost and now there is maximum flexibility to upgrade and deal with emergencies. Hughes asked how many inquiries besides the five that actually bid and Reilly said that is difficult to put a number on. He said they take many phone calls but not everyone bids. Reilly said bidders have to post a good faith deposit being 2% of the base amount. Williamson asked if all five bidders had to post security of about $36K to bid on the bonds. Reilly said if you’re notified you’re the winning bidder, then the deposit needs to be posted. Williamson asked if there is any potential for a bidder to alter or change. Reilly said effectively there is a contract when it is awarded. He said they want to uphold their reputation and they have presented a binding agreement.


    Reilly said the closing is set for March 12th. Williamson asked if it’s literally a check handed over and Reilly said on closing day, a check or a wire transfer could be enacted. He said there is a separate escrow account. He said the paying agent will assist on payments and notices to bond holders. He said there is a central depository that maintains inventory and the paying agent assists with this. Tolsma said he’s pleasantly surprised. He said Reilly has alluded to the strength and stability of the city and the ability to bond under 1.9%. Williamson makes a motion to adopt Res 15-10 providing for the issuance and sale of GO Bonds and Horton seconds. All votes ayes, motion carries.


    1. Resolution 15-11: No-Fault Sewer Backup Policy Changes –

Williamson said this is from the MN League of Insurance Trust and whether the city wishes to continue the coverage.  Tolsma said this is coverage the city purchased a few years ago and it’s a policy on no-fault sewer back-ups and water main breaks.  He said this can help with homeowner reimbursement.  Tolsma said there were some claims presented after last year’s rain and those claims were not honored as it was declared a FEMA 100 year rain event.  Tolsma said the League better defined rainfall events.  Tolma said the policy costs the city about $700 annually.  He said the policy was framed as a goodwill coverage in case of need.  He said last year’s rain was beyond what was insured and it will be difficult to cover future rain events.  Williamson said he, Hughes and Tolsma discussed this at the Admin Committee meeting.  They noted the policy is low but the fine print is prohibitive regarding the amount of rain in given time periods.  Williamson said when losses are not eligible for coverage, he wonders if the city should contact other cities to modify the program or explore self insuring options or relief funding.  Hughes asked where the rainfall is measured in this area, who does it, how is it documented and certified.  Tolsma said based on the LMCIT feedback they received, their information is from Chanhassen.  He said there can be localized monitoring if there are designated reporters.  Williamson thinks this needs to be studied further.  Hughes said there is methodology to monitor the lake level and it can impact backups.  He finds it concerning that there is not more scientific data available in specific areas.  Horton thinks rainfall can be different in close areas. Bren wonders if home-owner insurance can be increased for sewer backups that occur and Hughes and Tolsma said it is available but is extra.  Williamson said the decision is to modify the coverage and Hughes makes a motion to adopt Resolution 15-11 to establish this policy.  Horton seconds.  All votes ayes, motion carries. Hughes said he thinks a work session should be used to explore or inquire with a local insurance agent to get more information. 

    1. Mayor and Council – Williamson has nothing. Horton, nothing. Bren, nothing, Hughes, nothing.
    2. City Administrator – Nothing.
    3. City Engineer – Nothing.
    4. City Attorney – Nothing.
    5. Utility Superintendent – Nothing.
    6. City Planner – Williamson said Brixius has submitted a memo regarding a request for a zoning letter on property within the city. He said the property is in violation of outdoor storage and Tolsma explained the handout is comprehensive and outlines outstanding issues and noncompliance. Tolsma requests the council review this in the next few days and no official action is required by the council. Hughes wondered if this includes the sale of used items.       Williamson said the burden is on the applicant and because this is a renewal there is an assumption they had it in the past. Williamson said the city’s role is to attest to compliance or non compliance with the city’s ordinances and the rest is up to the State.
    1. February 19 – LMCC – 7:00 PM – Williamson said there is an orientation period for new members and this includes Pamela Horton.
    2. February 23 – City Council Work Session – 7:00 PM
    3. February 25 – LMCD – 7:00 PM
    4. March 2 – Regular City Council Meeting – 7:30 PM

Hughes wants to mention the LMCD boaters' safety program on March 14th and there will be two others scheduled later.  He suggest checking the LMCD website. 

  2. NEW BUSINESS & COMMUNICATION – Williamson said there are a couple of additions for Xcel and Sambatek.       Horton makes a motion to pay the bills. Bren seconds. All votes ayes, motion carries.
    1. Bills & Payroll
  3. MISCELLANEOUS (Information Only)
    1. January 2015 Fire Department Report
    2. LMCC Appointees List
    3. December 2014 Year End Financial Report – Williamson has been looking for this and it gives a benchmark for this point forward especially with the bond funding coming. Williamson wonders if this includes the most recent property tax payment and Tolsma confirmed. He said there is still some coming in but it will categorized for 2014 revenue.      
  4. ADJOURNMENT – Hughes makes a motion and Bren seconds to adjourn at 8:26 p.m. All votes ayes, motion carries.



                                                                                                Wendy Lewin, City Clerk




Dan Tolsma, City Administrator