October 7, 2013 Council Meeting

  1. CALL TO ORDER – Mayor Reinhardt called the meeting to order at 7:30 pm.
  2. ROLL CALL – Sippel, Williamson, Bren, Hughes, Reinhardt.
  3. INTRODUCTIONS – Reinhardt introduced the council and staff to the viewing public.  Administrator Tolsma, Clerk Lewin, Engineer Pearson, various students of the MWHS Government class.
  4. PLEDGE OF ALLEGIANCE -
  5. ADOPT AGENDA – Reinhardt wants to add under 10d, Resolution 13-20.  She said it’s an amended LMCC joint powers agreement and resolution.  Williamson makes a motion and Hughes seconds.  All votes ayes, motion carries.
  6. ADOPT CONSENT AGENDA – Reinhardt stated there are some updated, re-formatted minutes in front of the council.  Reinhardt said the adoption of the 9-16-13 minutes includes the confidential part of the minutes. Bren makes a motion and Williamson seconds to adopt the consent agenda.  All votes ayes, motion carries.
    1. City Council Regular Meeting Minutes from September 16, 2013
    2. City Council Work Session Minutes from September 23, 2013
  7. PUBLIC FORUM – No one.
  8. PRESENTATIONS & GUEST SPEAKERS – None.
  9. PETITIONS, REQUESTS & APPLICATIONS – None.
  10. ORDINANCES & RESOLUTIONS

a.  Conduit Financing Public Hearing – Reinhardt said there is a speaker to discuss the public financing.  Mark Beese with Northland Securities and Mark Meyers with Presbyterian Homes.  He said they are here tonight to process conduit financing which is using the city’s name to borrow money at tax exempt interest rates.  Beese said the project is in the city of Chanhassen and three cities are being requested in order to get bank qualification for the project.  He said the bonds are then sold to local, community banks.  Reinhardt asked for clarification of the city’s responsibility.  Beese said the city is not on the hook for the money, it’s just a conduit.  Sippel asked about why Chanhassen isn’t sponsoring it and Mark said because it’s a 20 million dollar project, each city only gets 10 mil. 

 

Reinhardt opens public hearing at 7:35 p.m.  No comment received.  Public hearing is closed at 7:35 pm. 

 

Reinhardt said the city attorney has reviewed the materials and recommends approval.  Williamson wants to establish for the record this is an administrative function and no security interest is being provided.  Hughes said to reaffirm his understanding he asks about item 3, receiving 1/8 of 1% of the bond issue and Reinhardt said this is what the other cities are charging.  Williamson said this also covers the city’s expenses. 

 

b.  Resolution 13-18: Approving The Issuance & Sale of Senior Housing Refunding Note -Hughes moves approval of conduit financing as outlined in the documents.  Williamson seconds.  All votes ayes, motion carries.

 

c.  Resolution 13-19: Approving 2014 LMCC Budget – Reinhardt said Sippel and Williamson, LMCC representatives, can outline the budget and what is being approved.  as there are significant changes.  Williamson said it’s been difficult.  He said there has been an option to opt out and cities have thought about it and some have taken action but it was during the budget process so three budgets were considered taking into consideration what was going on.  He said revenues are still uncertain.  Williamson said the LMCC must adopt a proposed budget and provide it to member cities and they have 45 days to approve or disapprove the action.  He said it takes a majority to approve or explicitly reject.  Williamson said once a budget is adopted, to change it, specifically to increase expenditures, requires unanimous approval.  Reduction in budget can be done administratively. 

 

He said the budget before the council is predicated on the exit of four cities and based on expected revenues of 2013 revenues.  He said using current revenues with no expectation of additional revenues the budget is predicated on doing the commission's business and if the dollars so allow provide the current services.

 

Williamson said cities can rescind their decision to depart the commission up to December 31st.  He said those dollars then become available.  Proportionality is difficult.  He said $257,000 covers the expenses to run the LMCC and also covers studio access, qualified producers, operating staff school and community events.  Williamson said if  a city chooses to leave, those expenses would leave and, if a city chooses to leave, staff reductions will have to be made.  He said severance will have to be paid and unemployment compensation may have to be paid.  Sippel said this is a formality.  Huges said there have been upgrades to the lighting and equipment and he wonders if this will short change them.  Williamson said there is no debt and cash has been paid for equipment.  Williamson said equipment needs have been met so far.  Reinhardt asked if the approval was unanimous and Sippel said no.  He said there were weighted votes, larger communities had more votes to cast.  Williamson moves adoption of the proposed LMCC 2014 budget.  Hughes seconds.  All votes ayes except Sippel votes nay.  Motion carries.

 

  1. REPORTS OF OFFICERS & COMMITTE
    1. Mayor and Council – Reinhardt said staff is meeting with Boomerang Labs to discuss sewer credit options and to look at current metering.  She said recommendations will be brought to the council.  She said she received some complaints regarding Fletcher’s Oktoberfest about the loud volume of music.  She said this should be considered if it comes back next year.  Sippel said Fletcher’s also received calls.  Hughes said there were some runners in the TC Marathon, Sandra McClellan, age 35 came in 27th and, in her division, she came in 3rd.   Two other runners from Spring Park also completed.  He suggests it be put in the newsletter.  Mound resident Seth Brickley placed third in the ten mile.
    2. City Administrator

                                          i.    Winter Trail Maintenance – Tolsma said this is an annual request to cities that have the trail.  He said Spring Park has traditionally chose not to maintain the trail because of limited staff and equipment.  Reinhardt said calls have been received from residents to maintain the trail for walking.  She said the city would be responsible for repairing damage to the trail and she doesn’t want to take that liability.  Sippel said it would be nice to have the trail cleared but the conditions are prohibitive.  He feels unless the entire trail is maintained versus randomly, it doesn’t make much sense. 

                                        ii.    Park Island Apartments – Scott Qualle – Said he wants to bring the council up to speed about some issues that may come up.  He said Mike and Rick Gorra own 2250 and 2270 Island Drive and he said the city recently received a complaint from a resident.  He said there is an above grade and below grade garage structure.  He said there is a tunnel that leads to the garage structure.  He said on the other side there is a garage structure that is two story as well and they also both have pre-stressed concrete planks.  He said the complaint was about the tunnel collapsing.  He said the tunnel is made of concrete block.  He said upon inspection, that structure is failing, the block is broken in many pieces and Qualle said the steel shims are rusted.  He said the center core and interior core has fallen away in the other building.  He said there has been some shoring up done. 

 

Qualle said a letter was written to resolve this quickly or condemnation would take place.  Qualle said engineering is necessary and Gorra’s are resistant to this.  Qualle said he will likely be posting both garage structures.  Hughes said this city needs a rental ordinance that would include these type of things as it keeps the quality level of rental units safe and up-to-code.  Reinhardt said if the building inspector feels it’s unsafe, it’s unsafe.  Reinhardt said from a practical standpoint she wonders how many cars will be displaced and what other parking options there are.  Qualle said there are about 100 spots. 

 

Reinhardt asked about condemnation.  Qualle said he would post red Do Not Occupy posters but he suspects they may be removed.  Williamson asked about the percentage of occupation of the buildings.  Qualle thinks they are probably close to full.  Reinhardt asked Qualle if he is looking for a motion.  She said Qualle has full authority as the building official. 

 

Qualle said the Tonka Grille has an issue that has been worked on for about a year.  He said there is an issue with ventilation with the condos located above the Grille.  He said fireplaces and water heaters are backdrafting.  He said there are new commercial owners and it could be $20-30,000 repair.  Hughes said he refers to rental properties and he believes there would  be similar patterns found in rental properties throughout the city.  Hughes thinks this is a good subject for a study session.  Reinhardt asked how this came to light.  Qualle said this was a resident complaint that goes back 12-15 years.  He said it was recently brought to light when the decks were resurfaced.  Reinhardt asked if there is an interim fix during the repair.  Qualle said that was the hope during the summer but now it’s October. 

 

Qualle said Certified Auto still has open permits dating back to the fire.  Qualle said Phleghaar represents some challenges to completing his projects.  He said there could be a Do Not Occupy issued.  Phleghaar wants to do the work himself but doesn’t get around to completing it.  Hughes asked if the old permits have expired can a requirement be made to reapply for new permits and new fees be assessed?  Qualle said the question would be if he would refuse to reapply.

    1. City Engineer -

                                          i.    Wiring Bids – Pearson said the wire replacement project has to do with the streetlights on Shoreline Drive.  He said background information is at the recent September work session there were a number of items discussed.  All existing wiring serving Shoreline Drive was tested by passing a current through existing wire between streetlights.  He said tests indicated 30% of existing wiring was in poor or marginal condition.  He said marginal could mean cracking of insulation around the wiring.  He said it might not need to be replaced but based on the subconsultant, Barr Engineering, they recommended to the city that both the poor wiring and the marginal condition wire be replaced.  He said reasons were there can be stray current that grounds and there are costs related to the current going into the ground and the marginal wiring only gets worse.  Pearson said some of the contract work to be completed did not need to be completed.  He said the light standard bases, the bolts and the concrete foundations were in good condition.  He said the original bid assumed 40% replacement and none were needed.  He said there has been a savings of about $40,000. 

 

Pearson said he is a civil engineer, not an electrical engineer.  He said one question was it is proposed six wires be installed between the streetlights and whether six wires are necessary.  He said the answer is yes, six wires are needed.  Positive wires, ground wires and neutral wires make up the six.  As part of the installation they are proposing a two inch PVC conduit.  He said this is a directional bore operation so sidewalks don’t need to be removed, only at each end of the bore.  He said the conduit is not necessary however electrical engineers state wiring can be damaged during installation.  He said conduit is about $.70 per foot and it would be about a $2,000 item.  Pearson said state code requires a minimum of 24” and a depth of 30” from grade is recommended.  He said there was discussion about county road upgrades in the future and the 30” depth placement should be good.  Hughes said he was pleased that the conduit is running around $2,000.  Williamson asked about the directional bore when a boulder is hit.  Pearson said they might have to go around it or the boulder will have to be removed.  Hughes asked about the depth of the water mains.  Pearson said 7.5 feet of cover. 

 

Pearson said at the request of the council, quotes were solicited and seven contractors were invited.  Four contractors submitted bids.  He said three contractors submitted a quote.  Pearson said a summary has been provided.  Pearson said the three were Egan, Granite Ledge and Muska Electric. The quotes were read.  Hughes asked about timeline as far as the quote.  Pearson said Goman talked with Egan and if the contract is awarded and after city attorney review work could start as early as October 14th.  He said there is a 14 day calendar completion and Egan can complete by the end of the month of October. 

 

Pearson said the light poles for the signal units and the other poles with the access panel changes should be completed by October 18th.  Williamson asked about two bids being about $1700 apart.  He said it’s obvious to take the low bid but it should be a qualified bid.  He wonders if there is an advantage in taking the technically second lowest bidder as they are doing the project already.  Pearson said when there are two contractors working on the same project what about the warranty.  Pearson said contractors will be working on top of each other to get the work done according to the timeline.  He said if there is conflict there could be finger pointing.  Tolsma said there is something to be said about continuity.  Williamson asked for Pearson’s recommendation.  Pearson said in his opinion he would stick with one contractor for the continuity factor.  He said there would be no finger pointing and less of a hassle for staff.  Tolsma recommends the same.  Sippel agrees and so does Hughes.  Sippel makes a motion for Granite Ledge for full part A and Part B poor and marginal wiring to be completed by the end of October.  Hughes seconds.  All votes ayes, motion carries.

    1. City Attorney – nothing.
    2. Utility Superintendent – nothing.
  1. UPCOMING MEETINGS & TRAINING
    1. October 9, 2013 – Administration Committee – 1:00 PM
    2. October 9, 2013 – Planning Commission – 7:00 PM
    3. October 9, 2013 – LMCD – 7:00 PM – Hughes said the LMCD has moved into the Mound City Hall. 
    4. October 15, 2013 – LMCC – 5:00 PM
    5. October 21, 2013 – City Council – 7:30 PM

Reinhardt reminds of the appreciation dinner tomorrow evening. 

  1. UNFINISHED BUSINESS – none.
  2. NEW BUSINESS & COMMUNICATION
    1. Bills & Payroll – Sippel asked about the claim for Granite Ledge and if that is for a substantial completion.  Pearson said it is partial.  Pearson said the pay request was $240,000 and the total contract without the banner poles was $356,000 and it should be around $316,000.  Williamson asked about retainage.  Pearson said it becomes discretionary until the punchlist is completed.  Williamson asked if the wiring is separate.  Pearson recommends checking with the city attorney on this because of a new state statute about change orders.  Williamson makes a motion and Bren seconds to approval the claims.  All votes ayes, motion carries.
  3. MISCELLANEOUS (Information Only)
    1. September Fire Report
    2. August Financial Report
  4. ADJOURNMENT – Hughes makes a motion and Bren seconds to adjourn the meeting at 9:17 pm.  All votes ayes, motion carries.