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HomeMy WebLinkAbout2009-09-10 - Council MinutesCITY OF CORCORAN CITY COUNCIL MEETING September 10, 2009 1. CALL TO ORDER AND ROLL CALL The Corcoran City Council met on September 10, 2009, at city hall in Corcoran, Minnesota. Present were Mayor Guenthner, Councilor Thomas, Councilor Gmach, Councilor Hudok, and Councilor Milbrandt. Also present were City Administrator Donahue, City Engineer Vander Top, City Engineer Torve, City Attorney Carson, Public Works Director Meister and Police Chief Gormley. Mayor Guenthner called the meeting to order at 7:00 pm. 2. PLEDGE OF ALLEGIANCE 3. AGENDA APPROVAL MOTION made by Hudok, seconded by Gmach, to approve the agenda as modified: Strike 10A — Discussion of Future Financing Issues and Opportunities Add Item 11B — Update on Job Descriptions Move Open Forum and Presentations before Claims as Presented Move Item 10D — Resolution 09 -39, Establishing Preliminary 2010 Maximum Property Tax Levy for 2010 up to 10B Voting Aye: Guenthner, Gmach, Hudok, Milbrandt and Thomas (Motion Carried 5:0) 4. OPEN FORUM 5. PRESENTATIONS Police Special Presentation Chief Gormley introduced 911 dispatcher Pat Audette. He also introduced Lauren and Will Ostenberg. Lauren and Will called 911 on August 13, 2009 because they found their dad unconscious in their garage. Ms. Audette was able to talk to Lauren and Will to keep them calm so they could assist in helping their dad. Chief Gormley presented a letter of appreciation to Pat Audette and also presented Lauren and Will with a citizen award certificate. 6. CLAIMS AS PRESENTED Building Inspection Claims MOTION made by Thomas, seconded by Hudok, to approve Building Inspection Claims in the amount of $2,212.74. Voting Aye: Guenthner, Gmach, Hudok, Milbrandt and Thomas (Motion Carried 5:0) All Other Claims Call to Order Roll Call Pledge of Allegiance Agenda Approval Open Forum Presentations Claims as Presented Page -1- CITY OF CORCORAN CITY COUNCIL MEETING September 10, 2009 MOTION made by Hudok, seconded by Gmach, to approve all other claims in the amount of $79,637.36. Voting Aye: Guenthner, Gmach, Hudok, Milbrandt and Thomas (Motion Carried 5:0) 5. CONSENT AGENDA 5A. Draft Minutes of August 13, 2009 MOTION made by Milbrandt, seconded by Thomas, to approve the Draft Minutes of August 13, 2009. Voting Aye: Guenthner, Gmach, Hudok, Milbrandt and Thomas (Motion Carried 5:0) 8. UNFINISHED BUSINESS 8A. Shannon Lane Project, Consideration of bids and awarding contract City Engineer Vander Top explained that the bid opening was held on August 31, 2009 at City Hall with good response and low prices. Bonestroo managed the project through the design and bidding and will provide recommendation to the Council. The low -bid cost was $36,000 below the engineer's estimate which is consistent with the past few years of construction costs being low. There were a total of 12 bids received; however, one bid was determined to be non - responsive. Out of the 11 bids the lowest bid was from G.L. Contracting, Inc. with a total base bid of $89,904.50. Prior to awarding the bid, easements need to be executed with the landowners. Easement agreements and figures of the construction area have been distributed for resident's review. As all easernents have not been secured, staff is recommending the council award the contract contingent on securing all of the easernents. City Engineer Torve updated the council on the discussions he has had with the residents regarding the easements. All of the discussions have come down to the value of the land. He contacted MnDOT regarding the easements and they discussed the right of entry option. The right of entry option was presented to the residents. So far there is one signed agreement, one verbal agreement and they are still waiting for response from the other resident. He explained the need to get permanent easements and explained the options to the council. There was some discussion about the process of eminent domain. Consent Agenda: Draft Minutes Unfinished Business: Shannon Lane Project, Consideration of bids & awarding contract Page -2- CITY OF CORCORAN CITY COUNCIL MEETING September 10, 2009 A question was asked regarding the variations in the bids between the contractors on the low grading part of the project. Joe Rhein (Bonestroo) answered that he wasn't sure what would cause such variations. There was discussion about the assessment process and how the money will be allocated with the easements. MOTION made by Thomas, seconded by Gmach, to approve Resolution 2009 -30, awarding the project to G.L. Contracting, Inc with the total base bid amount of $89,904.50, contingent on the city obtaining all project easements. Voting Aye: Gmach, Guenthner, Hudok, Milbrandt and Thomas (Motion Carried 5:0) There was some discussion about the assessment amounts and residents were inquiring on when the assessments will be determined. City Engineer Vander Top answered that the assessment hearing will be sometime in October. 9. PLANNING BUSINESS 10. NEW BUSINESS 10A. Discussion on Preliminary 2010 Budget There was some discussion about whether or not the council prefers to discuss the budget during workshop meetings or during regular council meetings. It was suggested that another budget workshop be scheduled and staff should attend this workshop. There will be budget workshop meeting for October 5, 2009 starting at 6 pm. 10B. Resolution 2009 -39, Establishing Preliminary 2010 Maximum Property Tax Levy for 2010 There was discussion about unpaid late property taxes. City Administrator Donahue presented the 2009 budget year to date. He explained that the budget wasn't in balance when originally approved, but in May of 2009 the Council approved reductions of about $135,000 in expenditures which brought the budget close to being in balance. He explained in detail the development of the City Performance Report and the budget forecasting to the end of 2009. He explained that the Market Value of all property in this City is down Planning Business: New Business: Discussion on Preliminary 2010 Budget Resolution 2009 -39, Establishing Preliminary 2010 Maximum Property Tax Levy for 2010 Page -3- CITY OF CORCORAN CITY COUNCIL MEETING September 10, 2009 $50,567,800 or 6.3 %. The tax Capacity is down $398,544 or 4.7 %. Staff has composed three Property Tax Scenarios. Each scenario is a model for the property tax levy needed to support the 2010 budget. Scenario A — The assumption is that the Tax Capacity Rate remains as it was in 2009, 30.677 %. Due to a slight falling in the market values city wide and county wide, this will produce a decrease in revenue over 2009 by $161,885. Scenario B — The assumption is that the city will keep the property tax dollars the same as in 2009 which is $2,323,713. This will cause the Tax Capacity Rate to increase from 30.677% to 32.820 %. The only increased cost certainty in 2010 budget is an increase in the debt service by $42, 176. Scenario C — The assumption is that the city levies the property tax to the maximum allowed by state law. This increases Tax Capacity Rate to 34.009 %. City is also able to recover the lost Homestead credits that were "unallotted" which is $70,605. Also because Corcoran had not real market value increases and no new construction, the actual base levy goes up a max of $19,287. The Budget Public Hearing is tentatively scheduled for Monday, December 7, 2009. MOTION made by Gmach, seconded by Hudok, to approve Resolution No. 2009 -39, A Resolution Adopting Preliminary Proposed Tax Levy 2009, Collectible in 2010. There was some discussion between the Council about the budget. Suggestions were given of ways to bring the budget back to balance. Voting Aye: Gmach, Guenthner, Hudok, Milbrandt and Thomas (Motion Carried 5:0) 10C. Major CIP Projects - Public Works Facility and Pavement Management Plan Mayor Guenthner explained that he asked staff to add this item to the agenda to discuss again as the city is looking into the 2010 Budget. A Power Point presentation was made in 2007 and a copy of the presentation was in the agenda packet. There was discussion about the Public Works infrastructure and debt load. This led to discussion about the facility relocating and how much space is needed and options available. It was suggested that this be a planning project during the year of 2010 with start of project being end of 2010 or a 2011 project when cash flow will be better. Major CIP Projects — Public Works Facility and Pavement Management Plan Page -4- CITY OF CORCORAN CITY COUNCIL MEETING September 10, 2009 Consensus was the relocation of the Public Works facility to be dealt with before the Pavement Management Plan. It was suggested that staff work on getting together space needs and cost analysis and provide the facts to the council for further discussion. 11. STAFF REPORTS /MEMOS 11A. Verbal Report on Planning Commission Meeting of September 3, 2009. Mayor Guenthner gave a brief update on the Planning Commission meeting of September 3, 2009. 11B. Update on requested staff job descriptions City Administrator updated the council that Administration staff met on August 24, 2009 and will continue to meet weekly. Updating of the administrative job descriptions is underway and will be brought to Council for review on September 24, 2009. 11C. September 24 Agenda Items Mayor Guenthner explained that there is one item on the agenda for planning business. It was suggested that the Fall Newsletter be added to the agenda. Suggestion was made to receive updates and to discuss the Public Works Facility Project on a regular basis. 12. UNSCHEDULED ITEMS None 13. ADJOURNMENT MOTION made by Thomas, seconded by Milbrandt, to adjourn at 8:51 pm. Voting Aye: Gmach, Guenthner, Hudok, Milbrandt and Thomas (Motion Carried 5:0) e•j -YL7C7 ce,e7 Dan Don aTiue City Administrator Staff Reports /Memos: Verbal Report on Planning Commission Meeting of September 3, 2009 Update on requested staff job descriptions September 24 Agenda Items Unscheduled Items: None Adjournment Page -5-