April 21, 2014 Council Meeting

  1. CALL TO ORDER – Mayor Reinhardt called the meeting to order at 7:28 pm.
  2. ROLL CALL – Sippel, Williamson, Bren, Hughes, Reinhardt.
  3. INTRODUCTIONS – Reinhardt introduced the council and staff to the public. Administrator Tolsma, Clerk Lewin, Attorney Beck, Catherine Courtney of Briggs and Morgan, Mark Beese of Northland, Richard Rehman of 3942 Del Otero, representatives from the Red Ribbon Ride.
  4. PLEDGE OF ALLEGIANCE
  5. ADOPT AGENDA – Williamson makes a motion and Hughes seconds to adopt the agenda. All votes ayes, motion carries.
  6. ADOPT CONSENT AGENDA – Bren makes a motion and Sippel seconds to adopt the consent agenda. All votes ayes, motion carries.
    1. City Council Regular Meeting Minutes from April 7, 2014
    2. Planning Commission Minutes from April 9, 2014
  7. PUBLIC FORUM – No one.
  8. PRESENTATIONS & GUEST SPEAKERS – None.
  9. PETITIONS, REQUESTS & APPLICATIONS
    1. Red Ribbon Ride –

Reinhardt explained this is a charity bike ride for Aids and she asked for background. Teresa Betch and Gretchen Harris said it’s a four day bike ride and it’s about 300 miles.  Harris said it starts at the Mall of America and from there to Belle Plaine, Mankato, Waconia and ends at the Capitol.  This is their twelfth year.  Reinhardt asked about the route.  Betch said their final day they are coming from Waconia and going through Mound, Spring Park, Wayzata and ending at the Capitol.  Hughes asked the coordinator if they’ve checked the cross streets and agree to the conditions to have crossing monitors at the two cross streets in Spring Park.  Harris agreed and said volunteers will be directing the bikers on the trail.  Reinhardt said there is a list of conditions that have been put together and they’ve applied to previous rides through the city.  Reinhardt said uniformed tour volunteers are being requested at both cross streets in our city. She said bike patrols might not be necessary 45 minutes before the event.  Hughes assumed there is a leader that heads the pack.  Harris said no, bikers will travel at their own pace.  Harris said they’ll be identified by helmet stickers, numbers and bracelets.  Reinhardt said there is trail etiquette and, she explained, there have been previous bike events that have not been courteous.  Reinhardt said the signs might not be necessary due to the limited size of the group.  Harris said there will be lots of markings on the trail since it’s a new route.  Hughes asked if the police has the contact information and/or city staff.  Hughes wants to talk about the Kings Road crossing as the intersection can be dangerous as some vehicles don’t always look.  Harris said they will be alerted to this and monitor it.  Hughes moves to approving the Red Ribbon Ride based upon the conditions set out. Sippel seconded.  Reinhardt asked for clarification and asks for a friendly amendment to also monitor Sunset Drive as part of the crossings. Sippel and Hughes accept the friendly amendment.  All votes ayes, motion carries.

 

  1. ORDINANCES & RESOLUTIONS
    1. Catherine Courtney – Briggs & Morgan

Reinhardt said Catherine Courtney of Briggs and Morgan is present to discuss conduit financing for Presbyterian Homes. Courtney said Presbyterian Homes has the senior housing campus in Spring Park and four years ago there was a new construction project and they are now looking at refinancing the entire campus.  She said in order for it to be bank qualified it will be divided into three bond issues.  he said Spring Park is being asked to issue 9.3 million and Northwest bank will be purchasing the notes.  Courtney said two things need to happen, one for the city council to hold a public hearing and then vote on a resolution to approve the issuance of the note.  She said there is also a tax increment development agreement and it’s between the HRA and Pres Homes.  Courtney said as part of the overall financing there is a request of collateral assignment and the HRA must grant approval.  Reinhardt asked for a definition of conduit financing.  Courtney said conduit financing is a vehicle that allows 5013c's to get tax exempt financing.  She said the tax code requires the note be issued by a government entity.  So, even though Pres Homes gets the advantage, the city issues the note. Courtney said Pres Homes enters into a loan with the city but they (PH) are fully responsible. She said it’s a pass through obligation to Pres Homes.

      1. Open Public Hearing –

        Reinhardt opens the public hearing at 7:45 pm.

      2. Discussion / Comments

      3. Take Action On Resolution 14-10:

      4. Pres Homes Conduit Financing Agreement

      5. Close Public Hearing – 7:46 pm. Sippel said the amount being financed is the same amount financed in 2010 and he wonders why it’s not less. Courtney said it is a little bit less. She said in 2010 it was $28 million. Beese said there was a prepayment penalty involved. Sippel asked when the collateral is assigned to the new loan he wonders if there is something that has to be done to unencumber the previous. Courtney said there was a collateral assignment but the benefit of that is with the bank that holds the 2010 note and they terminate it. Williamson wants to emphasize the fact that the advantages to the city are significant as the city receives an administrative fee of $11,000 and it shows support to a major facility in our area. He said there is zero risk to the tax payers of the city and he quotes from the document. Williamson moves to adopt Res 14-10. Sippel seconds. All votes ayes, motion carries.

      6. Recess Council Meeting & Convene Housing & Redevelopment Authority (HRA) 7:51 pm recess. Call to order as the HRA at 7:51 pm. It was explained that there is a requirement to swear in the HRA. Williamson nominates Reinhardt as the chair of the HRA. Sippel seconds. All votes ayes, motion carries. Hughes nominates Williamson for Secretary and Bren seconds. All votes ayes, motion carries.

      7. Oath of Office, Assign Board Chair, Assign Board Secretary

      8. Take Action On Resolution 14-11: TIF Collateral Assignment – Reinhardt explains Res 14-11 is the action they will take this evening. Williamson moves adoption of Res 14-11, Sippel seconds. All votes ayes, motion carries.

      9. Adjourn HRA & Reconvene Council Meeting – 7:54 pm adjourn and reconvene the city council meeting at 7:54 p.m.

    1. Ordinance 14-01: Accessory Structures –

Brixius said there is a report dated March 17th outlining the work done over the last few months.  He said there is a strikeout version to note the changes.   Brixius goes through the changes to the ordinance.  Brixius said exterior materials were discussed in depth.  They decided exterior finishes should be complimentary to the principal structure but certain materials are limited to 30%.  Plumbing was discussed and shower and bathing facilities are prohibited but toilet and washing stations would be allowed.  Sippel wants to confirm in section 42-64, 1 b. an attached garage and 80% or 1200 square feet, whichever is larger.  Brixius confirms.  Sippel is concerned with the continuous foundation of an attached garage and it doesn’t specifically state the percentage of the wall.  Brixius said “one wall or a portion of thereof” might clarify.  Reinhardt thinks a portion might be confusing.  Brixius said it says at least one wall.  Brixius would like to leave it flexible.  Sippel suggests adding or portion thereof.  Hughes referred to one attached garage and one attached accessory building and he wonders about the height of the 100 square foot. Brixus said it will be measured like any other building, average grade up to the mean of the hip roof.  Hughes said regarding the side yard setback is it with the foundation or the overhang.  Brixius said right now an eave is allowed so this will remain the same.  Hughes asked about the 30% of each wall and Brixius said there is room for clarity and it should say for each wall.  Hughes asked about plumbing and the assumption is to hook into the house and not a direct hookup to the sewer line.  Brixius said this was left flexible depending upon location.  Hughes said what he understands is an accessory structure could have water and sewer and they could have separate systems depending upon the location to the service. 

 

Brixius said there was a recent inquiry received from a resident about a proposed accessory structure. Brixius passed out a site plan of the proposal.  Brixius said this is for 4516 West Arm Road and it is lakeshore property.  Brixius said there is a sanitary sewer easement that cuts between the house and the lake so an accessory structure would be placed after the sewer easement.  Brixius said a cursory review was performed regarding the limited proposal at this time.  Brixius said at this time it appears to meet all code requirements however there is an adjoining neighbor who has expressed some concern about this proposal.  Brixius said this proposed structure would be two stories high.  He said there is also the possibility of a hold harmless agreement regarding the sewer easement.  Brixius said currently there is no prohibition of this and it would also be allowed with the new ordinance being proposed. 

 

Reinhardt said the PC did a great job with this ordinance. She wondered if this scenario was ever raised with the PC.  Brixius said there was some general discussion.  Williamson asked about 50 feet to survey line and 70 feet to water and he wonders about this versus the OHW.  Brixius said the setback is from OHW but there has been some confusion due to unassigned property fronting lakeshore.  Hughes said he is concerned about how deep is the sewer line easement and worries about potential backups.  Reinhardt said this would have to be explored if this proposal became formal.  Reinhardt said she would be against allowing an accessory structure on the lake side.  She is concerned that this didn’t previously come up and it is her recommendation that the PC looks at this again.  Reinhardt would recommend to prohibit detached accessory structure unless it was even with the principal structure but not in front of the principal building.  Williamson agrees with Reinhardt and he’s been trying to think of exceptions.  He thinks if he had a house on the lake he wouldn’t want to build something in front of it.  He said unless there is a steep bank and the main house could look over the accessory structure.  Williamson said even though this is finely tuned and crafted, this might be difficult.  Brixius said there can be location restrictions put on this. 

 

Hughes asked when the moratorium was up and is told April 30th is the end date.  Reinhardt said she would be open to prohibiting the larger structure but a 100 square foot shed be allowed.  She would like the prohibition put in and then have the PC look at this again.  Bren said she wouldn’t want an accessory structure built on the lakeside as it would probably open it up to more than just storage.  Hughes asked about the ten foot shed that is really a fish house that sits at the lakeshore.  Brixius said this is very difficult.  Brixius said on page five for setbacks there could be exceptions added that no accessory buildings between the principal structure and the shoreline.  He said open air structures could be added, such as gazebos would be allowed. 

 

Reinhardt rephrased no accessory building between the principal structure and the lakeshore line with the exception of the open air gazebo or the 100 square foot shed. Williamson thinks this can’t be crafted tonight.  He asked if the ordinance can be adopted and amended later.  Reinhardt said she is concerned that this leaves open applications that come in during the meantime.  Hughes wonders about the 25 feet that is restricted by the DNR.  Brixius said that is the shoreland impact zone and there are some allowances and flexibility.  Reinhardt asked if this ordinance is passed and can a moratorium be declared for lake side structures.  Hughes suggests amending the current ordinance to not allow accessory structures larger than 100 square feet in the lakeshore setback. Reinhardt suggests this be made in motion form. Brixius outlines the suggested changes before a motion is made. He refers to exterior materials being a percentage of each wall, clarification of one wall or portion thereof of the principal building and no accessory building will be located between the principal building and shoreline in the districts with the following exceptions as listed and include an open air structure.  Hughes makes a motion to adopt those outlined changes. Reinhardt seconds.  Hughes said if there is something similar applied for it should go through the variance process.  Sippel wants to clarify the suggestion there be nothing placed between the principal structure and the lakeshore other than a 100 square foot accessory structure. All votes ayes on roll call, motion carries. Reinhardt wants to thank Brixius and the PC for ferreting out all the issues.  Sippel said he would like this to revert back to the PC to investigate this change further to make sure this should stand.

  1. REPORTS OF OFFICERS & COMMITTEES
    1. Mayor and Council –

Reinhardt said she, Bren and Tolsma attended the police commission meeting and response times are under four minutes per average. Williamson said he has noticed articles in the paper for Orono Police to expand their facility and he wonders if there is any calculation as to what that might do to the City’s contribution.  Reinhardt said this was asked before and it has been said, for the time being, no financial impact to Spring Park beyond what is in place. 

    1. City Administrator

      1. Shared CSO Agreement With Mound –

  • Tolsma said Mound has officially approved this and there have been some slight modifications made by Beck. He said Kandis Hansen is bringing this back to the Mound council tonight. He said the main points are still in place. Williamson asked about services included but not limited to…conduct property inspections and he would be more comfortable with the word “requested.” Tolsma said it is clarified further in the agreement. Williamson thinks it’s too generic and he wants to be specific about directed property inspections. Hughes said he agrees but while on routine patrol the officer could become aware of potential nuisance properties. Williamson wants this to be clear and not just an understanding. Reinhardt asked if the council could act on this tonight. Reinhardt asked if there were any other potential changes. Seeing none, Bren makes the motion for the agreement with Mound for nuisance enforcement services including the language change suggested by Williamson and Sippel seconds. All votes ayes.

  • Tolsma said at the last PC meeting there was a variance request on West Arm East and it was unanimously recommended to deny. After that meeting the applicants have decided to redesign their structure and the variance request has been withdrawn. Williamson asked about the fees paid. Tolsma said costs would be assessed and applied against the escrow.

  • Sippel asked in past years there was an application from Linders for the flower house. Lewin explained Linders is no longer in business.

    1. City Engineer
    2. City Attorney

      1. Termination of Pres Homes Development Agreement –

        Reinhardt said there is a revised version in front of the council and Beck said the revision is just the addition of the last sentence. She said this is part of the Pres Homes refinancing. Williamson asked about a landscaping issue and he wondered how it was settled. He said it’s a landscaping agreement and a warranty agreement. He wonders about warranties if this termination agreement is enacted. He also wonders if there are any escrows still being held. Beck said escrowed funds have been returned and they were held to cover the warranties but the warranties have expired after two years. Williamson thinks there might still be time left on the warranties. He also wonders about the claims during the construction period and silt being deposited along the lakeshore. He is concerned about future claims of that property owner that may want to pursue that claim further. Beck said claims of property do continue and their obligation is to defend and indemnify even after the termination. Sippel asked if this is a legal procedure and the development agreement has lapsed. Beck said that is correct but a signed document is required in order to register this with the Recorder. Sippel emphasized the city is no more exposed than before by doing this. Sippel moves to adopt the termination agreement with Pres Homes. Hughes seconds. All votes ayes, motion carries.

    1. Utility Superintendent – nothing.
  1. UPCOMING MEETINGS & TRAINING
    1. April 28 – City Council Work Session – 7:00 PM
    2. May 5 – City Council Regular Meeting – 7:30 PM

Hughes said April 30th is the fire commission meeting and an LMCD meeting on Wednesday, April 23rd. 

  1. UNFINISHED BUSINESS – none.
  2. NEW BUSINESS & COMMUNICATION
    1. Bills & Payroll – Sippel asked about the assist police with Black Lake Road.       Tolsma said Goman was away from the office. There was an overweight vehicle on BLR and the police had stopped the vehicle.       The vehicle was unable to get off the road due to the icy conditions of the road. Norling was requested to salt that portion of the road. Hughes asked about Mpg Marketing and Mary Pat McNeil are the same. Sippel moves to approve the claims and Bren seconds. All votes ayes, motion carries.
  3. MISCELLANEOUS (Information Only)
    1. March Fire Department Report
    2. LMCD Request for Comment / Public Hearing Notice – Bayview Apts. Dock Reconfiguration – Hughes directed the attention to the document. Hughes said whenever a multiple dock license wants to reconfigure, they have to submit to the LMCD. Hughes said the square footage is not being increased. Sippel said when looking at the new layout there are five new slots and Hughes thinks that might be for PWC’s.       Sippel said he asked about restroom facilities and toilet pumping. He is concerned about parking to support additional boatslips, refuse containers and additional parking. Williamson asked about the rentals of docks to residents or non residents and that’s why there are these extras put in place. Reinhardt asked if there are comments we should submit back to the LMCD. Lewin said dock license applications have been mailed to multiple housing along with a copy of the ordinance and requirements. Pres Homes, Bayview, Edgewater, Parks Island and Lord Fletcher's Apartments receive the application. Reinhardt said as long as the applications have gone out, she would like to look at LF’s Apartments for their boat launch.

 

  1. ADJOURNMENT – Sippel makes a motion and Hughes seconds to adjourn the meeting at 9:12 pm.       All votes ayes, motion carries.

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                                                                        Wendy Lewin, City Clerk

 

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Dan Tolsma, Administrator