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Home My WebLink About2007-06-28 - Council Minutes CITY OF CORCORAN CITY COUNCIL MEETING June 28, 2007 CALL TO ORDER AND ROLL CALL Call to Order The Corcoran City Council met on June 28, 2007, at city hall in Corcoran, Minnesota. Present were Mayor Guenthner, Councilor Grabowski, Councilor Roll Call Jacobs, Councilor Hudok and Councilor Thomas. Also present were Chief Gormley, City Clerk Barb Larson, Engineer Vince Vandertop, Interim Planner Norm Gartner, City Attorney Joe 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 Jacobs, seconded by Hudok, to approve the agenda with the following changes: pull item 10.a, June 14 council minutes, to be moved to July 12 meeting. Voting Aye: Grabowski, Guenthner, Jacobs, Hudok, and Thomas. (Motion carried 5:0) Open Forum & OPEN FORUM & ANNOUNCEMENTS Announcements: None. PLANNER INTERVIEW Planner Interview – Sanders Wacker Bergly Tim Benetti of Sanders Wacker Bergly, Inc. introduced himself and his Senior Inc. Planner, Dave Wanberg. Benetti gave some background of their experience and stated they had a varied range of work experience in the planning field. Councilor Grabowski asked how they would handle large developers in a small city such as ours. Benetti replied they treat everyone with equal assistance and guidance. The Mayor questioned if they had experience with the Comp Plan process and Benetti replied they prepared a new Comprehensive Plan for Washburn, WI; Mahtomedi and Cloquet, MN. Benetti also stated they have a good working relationship with Met Council. The Mayor asked if they had experience with infrastructure and other issues with small cites. Wanberg replied they usually refer infrastructure issues to an engineer but have also done it through consultants. Councilor Thomas also questioned their distance from Corcoran and Benetti replied that’s a valid concern, so they utilize phone/email/fax availability. Their company would come in 1-2 days per week for meetings with homeowners on site, meetings with city staff, etc. – they would be willing to absorb or “eat” those travel costs of approximately 32 miles. Councilor Thomas also asked if they charge to attend council meetings and Benetti stated yes, that their hourly rate is in the proposal. After questions and answers were fielded, Benetti and Wanberg thanked the Council and Mayor for the interview. EMPLOYEE BENEFITS EMPLOYEE BENEFITS PRESENTATION PRESENTATION Mayor Guenthner introduced Carrie Theisen, a consultant with Employers Inc., who gave an overview of proposed city employee benefits through a PowerPoint presentation. The main goal would be to reduce the city’s sick leave liability over time by converting to a PTO bank (paid time off) combining sick and vacation, add dental insurance and short term disability for employees and implement a cafeteria plan. Councilor Thomas asked if this conversion to PTO would be mandatory for all employees and Ms. Theisen replied yes. Mayor Guenthner then stated that more discussion be made at the next Council meeting and to see what the financial . impact will be through 2008 based on current employment data PLANNING BUSINESS PLANNING BUSINESS Page -1- CITY OF CORCORAN CITY COUNCIL MEETING June 28, 2007 Meadow View Estates Preliminary Plat – Resolution 2007-41 Meadow View Estates 2007-41 Interim Planner Gartner stated there is a name change to Meadow Estates. He stated there are 13 lots of 60 acres, with 10 acres of it being wetland. Although there are some ROW issues with some surrounding cities, Gartner recommends approval of preliminary plat. Discussion by council members included the existing septic sites, park trails, and access roads. MOTION by Thomas, seconded by Grabowski to amend #12 of Resolution 2007- 41, Meadow View Estates Preliminary Plat, to confirm existing residence is in compliance with septic inspection and reporting requirements. Voting Aye: Guenthner, Grabowski, Hudok, Jacobs and Thomas. (Motion carried 5:0). Laurent Development UNFINISHED BUSINESS Status Laurent Development Status Mayor Guenthner stated that the Council took action at the last meeting that Laurent Development had missed a June 1 deadline on paying any indebtedness on a large outstanding escrow. Terry Forbord of Laurent Development introduced himself and his associate, Jacob Fick. Forbord went on to apologize to the Mayor and Council that besides personal and health issues, it is a slow business/market time for his business right now and that he has no excuses and that he knows he has an obligation to pay the City and if he could write a check today he would. He went on to explain that the market has halted and that his company has halted with it. He is hoping the market will eventually correct itself and that it will turn around. He is embarrassed he can’t pay timely. He asked the City to extend the PUD and needs 5-6 more months to put project together. He stated he will gladly answer any questions Council and Mayor have. Councilor Hudok noted that the letter received from Laurent is dated after the last Council Meeting and that there was a representative from Laurent at this meeting. Councilor Hudok noted that it seems to him that this letter pretends that no official action was taken regarding the Hedgestone Plat at this last meeting. Councilor Hudok felt that a letter begging for more allowances well after the June 1st deadline is unprofessional. Regarding Pg 1 Paragraph 2 of the letter, Councilor Hudok felt that this language sounded like Laurent was threatening nonpayment if further extensions are not granted. Responding to Pg 1 Paragraph 3, Councilor Hudok stated that Laurent caused themselves to run out of time, not the City and that the City should not take the blame for their failure. Councilor Hudok quoted the letter stating "when one runs out of time, everything stops." and added to this sentiment that when one runs out of money, everything stops too. Councilor Hudok further quoted the letter regarding other cities being "proactive" and "cooperating with developers for mutual benefit." and Page -2- CITY OF CORCORAN CITY COUNCIL MEETING June 28, 2007 added that some cities may have that luxury but does not believe the City of Corcoran has such a luxury due to the outstanding debt. Quoting benefit #3 from the Laurent letter, "...funds are helpful in balancing city budgets..." Councilor Hudok responded by stating that paying debts on time is helpful as well. Councilor Hudok felt that the last Paragraph of Pg 3, specifically "...making payment to the City when the final plat application is made.” is telling the City that payment will only be made if extensions are further granted. Councilor Hudok ended his comments regarding this topic by stating that Laurent continues to make hollow promises regarding payment of their debt to the City, that they are attempting to skirt the fact that a formal motion was passed at the previous Council Meeting, that Laurent makes several references to an intent to change the plat yet they want an extension on the current plat, and that Laurent is welcome to come back before the City once they have paid their just debts to the City and resubmit an application. Forbord replied it was not his intent to offend the Council but he never promised to make payment by June 1. Councilor Grabowski stated Laurent’s payments ceased in October, 2006 and then why no communication between Laurent and the City? Terry replied there was communication with the City by e-mail and phone calls to our staff. City Staff was diligent in doing their job and he would like to retain PUD for City’s sake for future city development. He said a $40,000 charge on a $50,000,000 project debt is small. He said he will pay but just can’t right now. He stated he knows discussions with our staff did occur, if not to the Council. Councilor Grabowski stated the City Council is responsible to its citizens and appreciates his courage and his apology to the City. Councilor Jacobs stated Laurent had a positive balance in March 2006 and why not just ask city staff to stop work until he could pay? Forbord stated that fees fluctuated, dynamics changed and “stop and goes” were outside his control and that he didn’t know when everything “hit the wall”. Councilor Grabowski asked when will the debt be recouped? Forbord replied he didn’t know, but if building entitlements come back, financing will come back into place but now he is not sure with current market. Escrow Fund Activity Councilor Jacobs questioned how the escrow fund accumulated to over $40,000 with no reporting to council and where to place blame. Administrator Vergin gave a brief overview of the billing process and stated that we will receive invoices in February for work already done in January from planners, engineers, etc and we in th turn pay them, then we send out statements by the 10 of the following month, with payments due in 30 days. If invoices are not submitted in a timely manner by the consultants, that will also cause a delay in receiving payments for work completed. Administrator Vergin will provide an update at the July 12 council Page -3- CITY OF CORCORAN CITY COUNCIL MEETING June 28, 2007 meeting on Escrow Process/Procedures and Consultant Billing. Corcoran Business Park – Backage Road Easement Acquisition Corcoran Business Park – Backage Road Joe Langel, City Attorney, gave a brief update and that he spoke with attorney for Easement Acquisition Medina Electric regarding monies that they felt were owed them by the City for appraisers, site planners, etc. since the City pulled out of the negotiation process when the time frame expired for the City to receive backage road funds from the State. They have an obvious interest in backage road. City Attorney stated he would like to put forward offer for ROW and tie-in for utilities. Councilor Jacobs asked if the city is at risk. City Attorney stated our City shouldn’t be responsible. Mayor Guenthner would like City to be kept apprised and move forward. Pavement Management Pavement Management Matters Matters Petition Process Mayor Guenthner would like council to provide feedback on the petition process. Councilor Thomas recommended that property owners pay 100% and that 35% would be needed for petition. Once we receive bids, then let residents know what the assessment is. It was also mentioned whether the city go through a 429 Process or Non 429 Process. Council Jacobs mentioned if some of the residents can’t afford it, that’s a problem too. Area Charges City Attorney Langel stated that the city has to substantiate area charge distinction between MUSA and non-MUSA and keep separate. Mayor Guenthner stated we need to find sources to pay for roads, balance element of financial collectibility. Engineer Vince Vandertop stated those MUSA and non-MUSA boundaries come from the Comprehensive Plan. Councilor Thomas questioned a per unit or city wide and it was agreed that the Council needs more information on units in and out of MUSA. City Clerk’s Statutory Requirements of City Clerk’s Attestation / Outsource Minutes Attestation/Outsource Councilor Thomas stated he is very supportive of outsourcing minutes and that it’s Minutes a long workday for current staff on council meeting days and that many surrounding cities already outsource their minute-taking. Councilor Grabowski also agreed with Council Thomas & supports outsourcing minutes also. MOTION by Thomas, seconded by Grabowski to approve outsourcing council minutes. Voting Aye: Guenthner, Grabowski, Thomas. Voting Nay: Jacobs, Hudok (Motion carried 3:2). Planning Consultant Planning Consultant Appointment Appointment MOTIO N made by Councilor Grabowski and seconded by Jacobs, to hire Norm Gartner as Planner. Councilor Thomas raised an objection as to Norm Gartner’s lack of training for Planning and his engineering only background and that he has the highest fees and feels he won’t support staff. Councilor Jacobs stated Gartner’s fees aren’t the highest and that the prior planner had charged $480,000 for 4 years. He also stated that Gartner indicated to him that Mr. Gartner will find ways to cap escrow funds spent. Mayor Guenthner raised a question that he doesn’t understand why the council wants to hire the least qualified individual? Councilor Grabowski stated that Gartner gives clear and concise answers and is very helpful. Councilor Hudok Page -4- CITY OF CORCORAN CITY COUNCIL MEETING June 28, 2007 also stated he felt Gartner has significant experience and that Gartner is very conservative. Mayor Guenthner also raised concerns of Gartner not having read the City’s ordinances nor the Comp Plan at the time of his interview. Councilor Jacobs responded that (the Mayor’s) was not a fair quote. He stated that the old planner gave us a complex ordinance. Hudok also stated he feels Norm Gartner has the best interests of the City in mind, is honest and forthright with the citizens and that Gartner stood up to the pressures at his interview and handled himself very well under that pressure and that a lesser candidate would have walked out of that interview at the time. Mayor Guenthner then raised an issue that Gartner hasn’t a guided City through a Comp Plan Process and that one of the other planners has a lower hourly rate, mentioned the incorrect fee statements Gartner billed the City for, costs that were incurred to the City prior to date we engaged him and he billed us for conversations with council members so why would the Council want to vote for the least experienced person? VOTE ON MOTION : Voting Aye: Hudok, Grabowski, Thomas. Voting Nay: Thomas, Guenthner. (Motion carried 3:2). TIME CALLED (at 10:00 pm) MOTION made by Thomas, seconded by Grabowski to extend meeting beyond time limit to 10:15 pm. Voting Aye: Grabowski, Guenthner, Hudok, Jacobs, and Thomas (Motion Carried 5:0) Mayor Guenther stated we will need to quickly go through some items that need approval tonight and table the rest for the next meeting on July 12 - Items 8f ,9b (i-iii) under unfinished business. Schedule Building Inspection Interviews: Schedule Building Inspection Services Interviews 90 Day Notice 90 Day Notice Requirement to Metro West Inspections Requirement to Metro Mayor Guenthner questioned whether or not the council would have a decision on West Inspections the 3 firms being interviewed in 90 days and to send to Metro West a termination letter. Interviews for 3 inspection services firms will be scheduled for the July 26 Council Meeting. MOTION by Grabowski, seconded by Hudok to send a notice of the 90 day termination to Metro West Inspections. Voting Aye: Hudok, Grabowski, Jacobs. Voting Nay: Thomas, Guenther. (Motion carried 3:2). NEW BUSINESS 2008 Budget Process/Calendar 2008 Budget Process Administrator Vergin stated that this was for informational purposes only and can Calendar be reviewed in the packet. Resolutions, 2007-42, Resolutions 2007-42, 2007-43 and 2007-44 2007-43, 2007-44 – Due to time constraints, these items above (9b – i, ii, iii) were tabled and will be on Tabled July 12 agenda. CONSENT AGENDA CONSENT AGENDA MOTION by Grabowski, seconded by Hudok, to approve the following consent agenda items: Page -5- CITY OF CORCORAN CITY COUNCIL MEETING June 28, 2007 10.b. Kral Land Division, Resolution 2007-45 Resolution 2007-45 10.c. Police Donations, Resolution 2007-46 Resolution 2007-46 10.d. CEO Quarterly Report CEO Report 10.e. Video Recording System Video Recording System 10.f. Advanced IT Services Advanced IT Services 10.g . Release Park Place Storage Letter of Credit, Resolution 2007-47 Resolution 2007-47 Voting Aye: Grabowski, Guenthner, Hudok, Jacobs and Thomas. (Motion Carried 5:0). June 14, 2007 Minutes – Consent Agenda Item 10.a., June 14, 2007 Minutes were tabled to July 12, 2007. Tabled CLAIMS AS PRESENTED 11a - Escrow Claims (Fund #500) $716.25Claims as Presented MOTION by Grabowski, seconded by Thomas, to approve Escrow Claims (Fund #500) as presented. Voting Aye: Guenther, Grabowski, Thomas, Hudok and Jacobs. (Motion carried 5:0) 11b- Building Inspection Claims $829.90 MOTION by Grabowski, seconded by Thomas, to approve Building Inspection Claims as presented. Voting Aye: Guenther, Grabowski, Thomas, Hudok and Jacobs. (Motion carried 5:0) 11c -All Other Claims $65,884.85 MOTION by Hudok, seconded by Grabowski, to approve All Other Claims as presented. Voting Aye: Guenther, Grabowski, Thomas, Hudok and Jacobs. (Motion carried 5:0) Council and Staff Reports COUNCIL AND STAFF REPORTS Parks & Trails Commission Councilor Jacobs, who is the Parks and Trails Commission Liaison, gave a brief verbal report before 10:15 time was called. Miscellaneous Correspondence There was none. Adjournment ADJOURNMENT MOTION by Thomas, seconded by Hudok to adjourn, 10:15 p.m. Voting Aye: Grabowski, Guenthner, Hudok, Jacobs, and. Thomas. (Motion carried 5:0) _____________________________ Barb Larson, City Clerk/Treasurer Page -6-