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HomeMy WebLinkAbout2007-03-08 - Council Minutes CITY OF CORCORAN CITY COUNCIL MEETING March 8, 2007 CALL TO ORDER AND ROLL CALL Call to Order The Corcoran City Council met on March 8, 2007, at city hall in Corcoran, Minnesota. Present were Mayor Guenthner, Councilor Grabowski, Councilor Jacobs, Councilor Hudok, and Councilor Thomas. Also present were Police Chief Roll Call Gormley, City Engineer Vander Top, Interim Planner Gartner, Interim Attorney Langel, and Administrator Vergin. Mayor Guenthner called the meeting to order at 7:00 p.m. followed by the Pledge of Allegiance. AGENDA APPROVAL Agenda Approval MOTION by Grabowski, seconded by Thomas, to approve the agenda with the modification of moving item 11.d. Star Tribune Article under 7.e. iv. Corcoran Business Park TIF Boundary Amendment. Voting Aye: Guenthner, Grabowski, Jacobs, Hudok, and Thomas. (Motion carried 5:0) OPEN FORUM & ANNOUNCEMENTS Open Forum & Announcements: Ivan Waterworth, 6345 Butterworth Lane expressed his concerns that no growth is being allowed within the city. Questioned why a building inspector cannot be available at the city hall to answer questions when people are trying to apply for building permits. The city is still served with private wells and septic systems, this is not a farming community, it is a bedroom community. There is nothing here for families. It is time for change and time to get things done. Loren Kohnen, 22755 Winchester Trail expressed his thanks to everyone that helped and responded to the explosion tragedy on County Road 19. 2006 Audit Report 2006 AUDIT REPORT Steve McDonald, Abdo Eick & Meyers, presented the Council with the 2006 audit. McDonald stated that the audit went very smoothly with a clear opinion. The City has done a good job with internal controls segregating the duties which are very uncommon for small cities to achieve. There were no non-compliance issues. There were only six (6) year end adjustments necessary. The general reserve fund was increased by $18,565 before a prior period adjustment to accrue for building inspection fees from 2005. The reserve fund is still low at only 19% of 2007 budgeted expenditures. Councilor Jacobs questioned the commingling of escrow funds and accounting for the receivables and if this has an impact against the assets. McDonald indicated that he would need more details to address those questions. Councilor Jacobs questioned if the auditor also checks the TIF accounts to see where the dollars are being spent. McDonald responded affirmatively. Councilor Jacobs had additional questions. Mayor Guenthner suggested that Councilor Jacobs provide a memo to the Auditor and allow Mr. McDonald time to respond. Councilor Thomas stated that the management letter was very comprehensive and would like to have it available during the budgeting process. He further suggested that there should be more comments provided by the administrator in the management letter as to what events where taking place during the year that may have impacted the budget. Page -1- CITY OF CORCORAN CITY COUNCIL MEETING March 8, 2007 Councilor Hudok questioned if the expenditures of TIF dollars meet state statute tests. McDonald stated that they review the claims disbursed by the City, they look to be sure that they have been approved by the City Council. (The City is required to submit an annual TIF report to the State Auditor.) Parks & Trails Business PARKS AND TRAILS COMMISSION BUSINESS: 2006 Annual Report 2006 Annual Report - Vice Chair Chad Robran provided the City Council with an overview of the tasks that the Commission had completed in 2006. The Commission is made up of 9 permanent members and 3 alternates; they meet on the third Tuesday of every month; they had three field trips to review properties; they reviewed development proposals for park and trail needs; and worked with the City of Maple Grove and Hassan Township to assure connectivity of trails as development occurs. The long-term park committee worked with them on looking at future park needs of the city. They were successful in receiving a DNR grant for the Saari property, if that site develops. They have improved the working relationship with the Athletic Association coordinating and assuring the safety and maintenance of the fields. A member of the Association, and resident, has become a member of the commission, which strengthens that relationship. Robran noted to the Council that an article in the Star Tribune this year stated that the State of Minnesota leads the country in paths and trails. At the Commission’s first meeting of the year they addressed if the commission is warranted and if so how often should they meet, should they only meet to review development proposals or to plan for the future of the community. The consensus of the commission was that yes they are needed; yes they should continue to meet monthly, that they would utilize a consultant only when needed, such as development reviews, development of ordinances and park standards. They want to place an emphasis on educating the public and coordinating with other entities such as the Lions, Athletic Association and the school districts. Long-Range Park Plan RFP – The request for proposals seeks professional guidance on the future needs of the community for park facilities. If a consultant is RFP – Long Range Park hired and the study moves forward park dedication funds would be utilized for the Plan expenditures. Administrator Vergin was directed to work with the commission and provide a draft request for proposal for Council consideration at the March 22, 2007 agenda. UNFINISHED BUSINESS: Hedgestone Preliminary Plat Hedgestone Preliminary Attorney Langel had provided the City Council with a confidential memo in Plat response to questions asked by the Council with regards to the process and decisions relating the Hedgestone preliminary plat. A memo was also received that evening from Attorney Bruce Malkerson representing the Hedgestone developer, Laurent Development. Mayor Guenthner requested that Attorney Langel address the confidentiality of the memo and then address what he can as it relates to the issues raised by the council. Attorney Langel stated that it is attorney / client privilege, that the memo provides insight on the issues that the directive from the council was. The Council can keep the memo confidential or the council can waive that right, but his recommendation Page -2- CITY OF CORCORAN CITY COUNCIL MEETING March 8, 2007 is that it should remain confidential. Langel then responded to the three issues raised by the council, proper notice regarding the rezoning, extension of the preliminary plat, and outstanding escrow balance. Rezoning – Relative to the Zoning Map adopted in March 2004, State statute does not require notice to affected property owners if the rezoning involves more than 5 acres. The city’s ordinance at that time required that the applicant provide a listing of property owners within 350 feet of the property being rezoned, and does not identify an acreage requirement. The claim of the City not being an applicant misses the point that a notice is needed for anyone. One may argue that notice should have been made. Relative to the Hedgestone PUD, there was a public hearing process, notices were mailed and published, which renders the March 2004 action moot, as opportunity was provided again to the residents to speak to the issue. If an ordinance or zoning map is published in book or pamphlet form it is granted conclusive validity after three years. For this reason hard to challenge a March 2004 zoning but the issues are thre due to the mistakes made. Preliminary Plat Extension - In December of 2004 the city approved the preliminary plat for Hedgestone. In the approving resolution it states that the developer must apply for a final plat within two years of the preliminary plat approval. The City’s ordinance states that unless the city council specifically approves a different time period, the approval of a preliminary plat shall expire one year from the date of approval. The extension request by Laurent Development was timely and allowed by ordinance. Outstanding Escrow – The City has the right to establish escrow funds and the developer has the obligation to pay. It is a breach of contract which is a condition of the extension that was granted in December of 2006. If the developer fails to pay the City has recourse options. Councilor Grabowski questioned the ability of the City to extend after one year. Langel confirmed that the City does have that option. Councilor Hudok questioned if the outstanding escrow is a breach of the contract, and can the council modify that contract. Langel responded that the City has the authority to modify the contract. Councilor Jacobs stated that at the public hearing held in late 2004 there were approximately 150+ people in attendance. Concerned that proper notice was not provided, therefore it is null and void. The comp plan amendments are coming up; dollars had been spent and will be spent. The supreme court indicated that this is not okay, because people were not notified. Attorney Langel responded that because of the lack of notice the March 2004 zoning was “null and void” but now the three-year issue conclusively validates the ordinance and it cannot be challenged. The practical issue as to where the City goes from here is that the best opportunity would be to move forward with amending the comp plan and get the public aggressively involved. Mayor Guenthner stated that the prior comp plan process took over three plus years, that there were over 50 citizens having direct input as committee members and participated in the process. Over 100 more residents attended the numerous open houses and public hearings. It is important to know that there was considerable public process. The way that the law is applied is not always black Page -3- CITY OF CORCORAN CITY COUNCIL MEETING March 8, 2007 and white, our ordinance states that the applicants are required to do many things, so that raises the question as to whether or not the City is considered an applicant in this case. Hudok, whether the city is an applicant or not, notice should be provided, disappointed in the amount of mistakes that took place during this process. Thomas, overall zoning changes were done as part of the Comprehensive Plan process and numerous notices through newsletters with maps were distributed. If council members want to contest action that the City did, should we be utilizing city time and money to investigate. Attorney Langel responded that this is hypothetical, as does not see the City in that position at this time. Jacobs responded that he feels that he is working for everyone in the City. The question is at what point were there enough mistakes made or enough problems that had impacts on others in the City. Hudok would hope that it is not considered adversarial to review the city’s process and to assure that mistakes don’t happen again. Grabowski questioned Attorney Langel with regards to whether any of the actions are null and void. Langel responded that this has not been judicated null and void, the ordinance is presumably valid and will be conclusively valid. There is no action required of the Council, recommend moving forward with the Comp Plan review. It was questioned if the City should consider the placement of an interim ordinance or a moratorium on development in the City. Attorney Langel responded that the City is required to define specific findings for instituting a moratorium and at this time could not guide the council if it would be valid at this time. No action taken. Hodgin Acres – Area Transportation Fees Hodgin Acres – Area Transportation Fees The current development agreement for Hodgin Acres requires the payment of transportation area fees of $2,000 per developable acre. The developer has questioned the fairness of this fee. Currently the Pavement Management committee is reviewing this matter and the council is sensitive to this issue. After some brief discussion the Council directed staff to prepare a resolution and an amendment to the Hodgin Acres Development Contract requiring an irrevocable letter of credit in the current amount required for transportation fees, and indicate that if within one year the fees are reduced the Hodgin development will pay the lesser fee; if the city does not have this issue resolved within one year, the letter of credit will be released and no transportation area charges will be collected for the Hodgin Acres development. Nichols Conditional Home Occupation License (CHOL) Nichols CHOL Attorney Langel had been requested to look into the matter as to whether or not Mr. Nichols home occupation was grandfathered in therefore not required to apply for a CHOL. Langel informed the council that the current home occupation ordinance was adopted in 2001, prior to that time it was controlled by Ordinance #95, which indicated that home occupations were permitted by a conditional use permit, and that no employees were allowed. Therefore in this case it would appear that it is not grandfathered in and would be required to go through the licensing process. Further noted that each fact and each application need to be looked at separately to determine where they fit. Mr. Nichols stated that he does Page -4- CITY OF CORCORAN CITY COUNCIL MEETING March 8, 2007 not have any employees that work at the site; they come to pick up equipment. Attorney Langel suggested that this matter go before the planning commission to create a fact record to determine where this fits, it is either lawful or it is not. This will be placed on the April 5 Planning Commission agenda. RFP Process Request for Proposal Process (Planner/Attorney/Building Inspection Service) The council concurred that they would review the RFPS and schedule a workshop at a later date. Corcoran Business Park Corcoran Business Park Transition to Attorney Langel – Staff conformed to the Council that the Corcoran Attorney Business Park matters would now be handled by Attorney Langel. Other Associated Staff Other Staff Associated with Project - Councilor Jacobs address material that he had provided the council which contained a client list of Landforms for 2002; both Ebert Construction and United Properties were identified. Jacobs further noted that it may or may not have been a conflict of interest, but felt that the City should be aware of that. Greg Ebert addressed the council stating that he had disclosed that he had worked with Landform on a project for Milow Electric and one of his own. Mr. Ebert also noted that he intends to use Bonestroo as well, as he is no longer a planning commissioner, he is a citizen of Corcoran. Draft Subsidy, Draft Business Subsidy, Draft Development Agreement & TIF Boundary Development Contract, Amendment – The City Council scheduled a workshop meeting for March 27 at and TIF Amendment 7:00 p.m. to review these items with the associated staff / consultants that have been working on the project. Medina / Corcoran Utility Agreement Subcommittee Report Medina/Corcoran Subcommittee Councilor Grabowski informed the council that they would be meeting on Monday, March 9 at 8:00 AM to review the extension of services from Medina to Corcoran with representatives from Medina. Final Draft Spring Newsletter Spring Newsletter The newsletter was approved for distribution with a modification. Access to Legal Counsel Access to Legal Counsel Mayor Guenther acknowledged receipt of a letter from Attorney Langel addressing the accessibility of legal counsel to councilors. If no questions from councilors then will just receive as information. Jacobs brought up discussion regarding the time spent by Interim Planner on the Nichols matter. That Gartner was representing the City and doing his job and therefore he should be paid for those services. Mayor Guenthner stated that Mr. Gartner performed the work under the direction of Councilor Jacobs, not the Council, and therefore accepted Mr. Gartner’s offer to not bill the city for that time. Mayor Guenthner stated that if Mr. Gartner wishes to submit a claim then the council can review it at that time, not at this time in the meeting. The matter is out of order at this time, he can submit an invoice and then it can be consider during the approval of claims. Page -5- CITY OF CORCORAN CITY COUNCIL MEETING March 8, 2007 MOTION by Jacobs, seconded by Hudok that the Mayor is out of order and would like to finish the discussion. Mayor Guenther requested that Attorney Langel advice the council. Attorney Langel stated that the Mayor does have the authority as the presiding officer to control the order of the meeting. In the event that the Mayor chooses to not acknowledge or recognize a member of the public or a member of the council then a member of the Council can appeal that ruling, and if a majority of the council agrees, the appeal stands. It was clarified that the appeal was on the Mayor’s decision to move forward on the agenda. VOTE ON MOTION: Voting Aye: Grabowski, Hudok, and Jacobs. Voting Nay: Guenthner Thomas has stepped out of the meeting (Motion Carried 3:1) Jacobs wanted to continue discussion on the ability of council members to contact staff. He stated that he did not order Interim Planner Gartner to do anything that he told him he may consider doing something, since he was charged with taking information and considering it his job. Gartner then researched and raised questions for the Attorney. If Council members need to contact staff they should be able to do that. The Planner should have the authority to contact other staff, such as the attorney. Mayor Guenthner agreed that the Planner should contact other staff members as needed, but what he felt was inappropriate was the investigation, memo and materials prepared before the matter had been brought before the City Council for consideration, added to the fact that it appeared that he was preparing materials that were adverse to the city position, getting out ahead of the process. Should have said this matter came to his attention and then sought direction from the City Council or contacted the City Attorney for advice. Mr. Gartner can submit a claim for the time he spent on the Nichols matter, and then at that time the council can vote whether or not it will approve that claim. NEW BUSINESS: Town of Hassan AUAR Comments Town of Hassan AUAR Engineer Vander Top briefly addressed his comments and the comments provided by Interim Planner Gartner in response to the AUAR document prepared for development in the SE corner of Hassan Township. Engineer Vander Top indicated that he would provide a verbal response to Hassan and follow up with a written summary. The key items to address are transportation, storm water, water supply, wastewater/ sanitary sewer and compatibility with Corcoran’s land use plan. MOTION by Thomas to adjourn the meeting, 10:00 p.m. (Motion died due to the lack of a second). Extend Meeting Past MOTION by Jacobs, seconded by Grabowski to continue the meeting another 10 10:00 PM – 15 minutes. Voting Aye: Grabowski, Hudok and Jacobs. Voting Nay: Guenthner and Thomas (Motion Carried 3:2) Schedule Closed Session Scheduled Closed Session A closed session will be held on March 22, during the regular council meeting, Page -6- CITY OF CORCORAN CITY COUNCIL MEETING March 8, 2007 with regards to the Notice of Claim and Demand. CONSENT AGENDA Consent Agenda  MOTION by Grabowski, seconded by Hudok, to approve the consent agenda Police Officer Hiring items  Jaycees Gambling b. Police Officer Hiring Status License - Corcoran c. Corcoran Jaycees Gambling License for Corcoran Country Daze Country Daze Voting Aye: Guenthner, Grabowski, Jacobs, Hudok, and Thomas. (Motion carried 5:0) MOTION by Grabowski, seconded by Jacobs to approve the February 8, 2007 council minutes with the following changes: “Guenthner would consider voluntarily completing the form if the committees or groups formed within the City for the purpose of influencing the outcome of and election…” “Guenthner summarized that most people believe a variance would give relief from the law; often the law should be reviewed for possible change” CLAIMS MOTION by Hudok, seconded by Grabowski, to approve the claims as presented, Claims totaling $19,975.90. Voting Aye: Guenthner, Grabowski, Hudok, Jacobs, and Thomas. (Motion carried 5:0) Council and Staff Reports COUNCIL AND STAFF REPORTS:  Planning Planning Commission Commission Meeting canceled due to weather.  Daylight Savings Daylight Savings Time Report Time Mayor Guenthner thanked staff for the report indicating that the city was aware of issues that could occur with daylight savings time coming early, and has taken measures to reduce and eliminate any issues. ADJOURNMENT Adjournment MOTION by Thomas, seconded by Hudok to adjourn, 10:08 p.m. Voting Aye: Guenthner, Grabowski, Jacobs, Hudok, and Thomas. (Motion carried 5:0) ______________________________ Sue Vergin, Acting City Clerk Page -7-