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HomeMy WebLinkAbout2007-12-13 - Council Minutes CITY OF CORCORAN CITY COUNCIL MEETING December 13, 2007 CALL TO ORDER AND ROLL CALL Call to Order The Corcoran City Council met on December 13, 2007, at city hall in Corcoran, Roll Call Minnesota. Present were Mayor Guenthner, Councilor Grabowski, Councilor Jacobs, Councilor Hudok and Councilor Thomas. Also present were Administrator Vergin, City Engineer Rhein, City Planner Gartner, Police Chief Gormley, Public Works Director Meister and City Attorney Langel. Mayor Guenthner called the meeting to order at 7:00 p.m. followed by the Pledge of Allegiance. Agenda Approval AGENDA APPROVAL Councilor Hudok requested Bechtold Road conditions be added under unscheduled items. MOTION made by Grabowski, seconded by Hudok to move Item 8a. Equipment CIP up in the agenda to be item 7 iii. Voting Aye: Grabowski, Guenthner, Hudok, Jacobs and Thomas (Motion carried 5:0) MOTION made by Hudok, seconded by Grabowski, to accept additional information provided by Councilor Jacobs relating to the Truth in Taxation data. Voting Aye: Grabowski, Hudok, and Jacobs. Voting Nay: Guenthner and Thomas (Motion carried 3:2) MOTION made by Thomas, seconded by Guenthner, to approve the modified agenda. Voting Aye: Guenthner and Thomas Voting Nay: Grabowski, Hudok and Jacobs (Motion failed 2:3) MOTION made by Grabowski, seconded by Hudok to approve the modified agenda eliminating item 5. Recognition of Corcoran Resident and item 6. RJ’s CUP Amendment. MOTION TO AMEND made by Guenthner, seconded by Thomas to further eliminate items 9. Consent Agenda, 11. Council and Staff Reports and 12. Unscheduled Items from the agenda. Voting Aye: Thomas and Guenthner Voting Nay: Grabowski, Hudok and Jacobs (Motion failed 2:3) MOTION TO AMEND made by Hudok, seconded by Grabowski to eliminate Items 5. Recognition of Corcoran Resident, 6. RJ’s CUP Amendment, 11. Council and Staff Reports, and 12. Unscheduled Items from the agenda. Voting Aye: Grabowski, Hudok and Jacobs Voting Nay: Guenthner and Thomas (Motion carried 3:2) VOTE ON MOTION AS AMENDED to approve the modified agenda eliminating Items 5, 6, 11 and 12. Voting Aye: Grabowski, Hudok and Jacobs Voting Nay: Guenthner and Thomas (Motion carried 3:2) Open Forum & OPEN FORUM & ANNOUNCEMENTS Announcements: Steve Dodge, President of the Corcoran JC’s expressed his appreciation for Chad Robran’s service and his support to the JC’s and the community. John Boos explained that he was going to purchase property in Corcoran. He applied for an interim use permit to allow a home occupation, which was granted with a requirement by the council for the septic to be investigated. The investigation found the soil to be contaminated which has now created a financial disaster. He is requesting a full refund of his fees he paid to the City to process his application. Mr. Boos distributed a letter to the City regarding his request. Page -1- CITY OF CORCORAN CITY COUNCIL MEETING December 13, 2007 UNFINISHED BUSINESS Unfinished Business: 2008 Budget/Levy, Resolution No. 2007-97 2008 Budget/Levy, Resolution No. 2007-97 Administrator Vergin clarified to the council that the Equipment CIP Plan is a plan that requires bonding in 2008 and levy in 2009 and there is no impact on the 2008 budget. Administrator Vergin reviewed with the council the material that they received in their packet in regards to the budget. Councilor Jacobs presented to the council some handouts. MOTION made by Thomas, seconded by Guenthner, to approve Resolution No. 2007-97, A Resolution adopting the Final Tax Levy 2007, collectible in 2008. There was some discussion about the increase in the police department budget and it was suggested decreasing the budget by eliminating some hiring of police officers and to ask the county for assistance for police coverage. Police Chief Gormley explained to the council the reasoning of hiring of full time officers compared to hiring part time officers. If the community needs to wait for assistant from county officers, there most likely will be a delay in a county officer arriving at the scene, which could be critical. A suggestion was made to limit the growth to 3%. Request staff to figure out where to decrease the budget allowing only for a 3% increase. Concern was raised that if the Staff is requested to reduce the budget by an arbitrary amount, then the Council should allow them to set policy in order to reach the requested goal. Chief Gormley added that if the Council were to set the increase to only 3% the police department wouldn’t be able to maintain the police coverage that is needed for the community. A suggestion was made to modify the budget to create a 90-day delay on any hiring. There was some discussion about staff and council setting priorities in where the city can afford to cut the budget and which departments require priority for hiring. Staff should shift priorities to ensure the ability to provide core services to the public. VOTE ON MOTION: Voting Aye: Guenthner and Thomas Voting Nay: Grabowski, Hudok and Jacobs (Motion failed 2:3) MOTION made by Grabowski, seconded by Hudok approving Resolution No. 2007-97 capping the budget increase to 3% over 2007 expenditures and for staff to work through the budget to make the appropriate reductions through out the budget. There was some discussion about what the budget increase amount would be if the cap was set at 3%. This lead into discussion about insurance premiums and fire department cost for coverage taking up most of the 3% cap increase amount. Administrator Vergin added that if the council approves the 3% cap the staff will have to cut an additional $162,594 from the budget. Page -2- CITY OF CORCORAN CITY COUNCIL MEETING December 13, 2007 VOTE ON MOTION: Voting Aye: Grabowski, Hudok and Jacobs Voting Nay: Thomas and Guenthner (Motion carried 3:2) Additional Changes / Modifications It was suggested that staff take time to work with the 3% increase cap and council to discuss line item modifications at a later time. Equipment CIP Plan 2008-2009 Equipment CIP Plan 2008-2009 Administrator Vergin explained that the City started a program in 2001, allowing for the purchasing of equipment through a bonding program. This plan allows each department to buy and replace equipment as needed. Each department has identified their needs 2008 and 2009. The Police Department is $155,200, Public Works is $355,000, and the Technology CIP is $90,000, for a total of $600,200. The city is able to finance purchases every third year with a five-year bond, which is structured in a manner to keep the levy consistent over time. There was discussion about scheduling the replacement of equipment. That buying new equipment is sometimes better than spending money on the many repairs needed on the older equipment. It was suggested to discuss this again in February/March to allow time for the staff to provide background information and replacement needs of the current equipment. Public Works Superintendent Meister expressed his concern about this suggestion because the public works department needs to place orders for some of the equipment as soon as possible for delivery in June or July. There was consensus that the Staff could still come forward with recommendations prior to the CIP being approved. Pavement Management – Rural Collector Roads Pavement Management – Rural Collector Roads A power point presentation was given by City Engineer Rhein and Administrator Vergin. This presentation reviewed goals and issues of the Rural Collector Road System. There are 13 roads in the system, out of these 13 roads there were 6 top ranked roads identified in terms of urgency to be repaired. Draft Phase 1 Improvement is to be approximate 25% of the overall Rural Collector Roads System. From the analysis the Draft Phase 1 identified by staff includes Trail Haven Road (south of Cr 30), Larkin Road, Willow Drive and Kalk Road. The estimated cost of this phase will be $3,900,000. Funding sources can include bonds, assessments, and area charges. City Engineer Rhein explained the key points in regards to the Area Charge and explained what the next steps are that the city needs to take. Administrator Vergin presented the bonding analysis/tax impact to properties. She emphasized that all scenarios are based on today’s dollars. One of the bonding options for phase 1 would be a 4 million General Obligation Bond. This would be a 15-year debt schedule with a 4% interest rate. This would be 100% levied against general property taxes, which would require a referendum and no assessments to benefiting properties. Another option is for 80% to be levied against general property taxes and 20% to be assessed against benefiting properties. The last option presented for phase 1 is 70% levied against general property taxes and 30% assessed against benefiting properties. She also presented the bonding option for if the City were to decide to improve all of the collector roads. This would require a $16 million General Obligation Bond. Page -3- CITY OF CORCORAN CITY COUNCIL MEETING December 13, 2007 An option for this bond would be a 30-year debt schedule with 100% being levied against general property taxes, which requires a referendum. With this option there will be no assessments to benefiting properties. Another option presented was 80% being levied against property taxes and 20% assessed against benefiting properties. The last option presented is to levy 70% against general property taxes and 30% assessed against benefiting properties. Revenue resources include Municipal State Aid Funds which can only be used on MSA designated roads. Roads that are considered MSA are Kalk Road, Larkin Road (Willow Drive to Old Settlers Road), Schutte Road, Trail Haven Road, Horseshoe Trail (Rolling Hills Road to Willow Road) and Willow Drive (North of Horseshoe Trail). Allowing for other obligations, MSA funds toward Rural Collector Roads could range from $50,000 to $100,000 per year. The development agreements that are currently in place are Hodgin Acres, Donita and Hietke Farms. There was some discussion about what the city needs to do and what the time line is for having a referendum for a 100% levy. This lead into a discussion about how the levy option would affect property owners with building rights versus the affects they would have if the city were to choose the assessment option. It was questioned if the City can do a referendum and assess less than 20%. A suggestion was made that a starting point could be to determine where the larger building rights are through out the city and which area of the city would have the most impact. This lead into discussion about how the referendum is great to be able to get the communities input, but it isn’t fair to properties that don’t benefit from the projects. City Engineer Rhein explained that he would recommend the city to go with the assessment approach. The property will benefit from the project, and the city should be able to collect from that value. It should be more of an expense for properties that do benefit from the project than the properties that have no benefit of the project. There was some discussion about whether or not amounts could be broken down or can be compared to newer homes assessment amounts compared to older home assessment amounts. In regards to Phase 1, staff was directed to build a scenario, of if the city offered a 50% increase on parcels greater than 40 acres of building rights sale, how many selling rights would that involve? This gives the council the ability to start looking at value of those sale rights. This lead into a discussion on advantages or disadvantages of selling rights on smaller parcels. Council consensus was for staff to provide council with a couple different scenarios. There was some discussion on whether or not staff should continue to create scenarios for Phase 1 or for the whole project. Council consensus was for staff to concentrate on creating options for phase 1 only. The scenarios will be presented at the second council meeting in January. NEW BUSINESS New Business: Page -4- CITY OF CORCORAN CITY COUNCIL MEETING December 13, 2007 Administering Corcoran Administering Corcoran Advisory Staff Resource Advisory Staff Resource Councilor Jacobs expressed his concern that there may be a lack of communication between city staff and the advisory staff. All staff was directed to work together and make sure communications are working. Attendance at Council Meetings by Planner Gartner Attendance at Council Meetings by Planner It was suggested that the planner attend the standard planning agenda night. But if Gartner the council has matters that involve the planner then the council is to determine if the matters can be done at the second council meeting of the month. If the issues are needed to be resolved sooner then the second council meeting than council is to contact staff and they will contact the planner with the issues and can decide if he RFP’s for Financial is needed at the first meeting of the month. Consultants RFP’s for Financial Consultants Councilor Jacobs had some concerns and questions about a free analysis service given to the city from securities vendors, specifically services provided to the City at “no charge to the city”. He is suggesting that the city prepare RFP’s, so during the Council’s 2008 appointments they can properly screen for the persons and firms that get involved in major expenditures of City funds. There was no action taken by the Council. Consent Agenda Items Approved: CONSENT AGENDA Bryant Topography and MOTION made by Grabowski, seconded by Hudok, to approve Consent Agenda: Wetland Waiver, 9d. Bryant Topography and Wetland Waiver, Resolution 2007-98 Resolution 2007-98 9e. JC’s Gambling License at Stanchion, Resolution 2007-99 JC’s Gambling License at Stanchion, Resolution 9f. November 1, 2007 Jt. Meeting with Planning Commission 2007-99 9g. Donation to Police Department, Resolution No. 2007-100 November 1, 2007 Joint. Mayor Guenthner acknowledged the donation from Jennifer Ryan and Brandon Meeting with Planning Wise on behalf of Dick Wise and he expressed his appreciation for this donation. It Commission was suggested that Police Chief Gormley provide recognition for this donation at Donation to Police the next council meeting. Department, Resolution VOTE ON MOTION: Voting Aye: Grabowski, Guenthner, Hudok, Jacobs and No. 2007-100 Thomas (Motion carried 5:0) MOTION made by Grabowski, seconded by Thomas to approve the consent October 3, 2007 agenda items as modified: Pavement Management 9a. October 3, 2007 Pavement Management Minutes Minutes Mayor Guenthner stated he would like to receive these minutes in a timelier manner. November 19, 2007 9b. November 19, 2007 Council Minutes Council Minutes th Page 7, 4 paragraph, “acre” should read “animal unit” 9c. December 3, 2007 Truth In Taxation Minutes December 3, 2007 Truth rdth Page 2, 3 paragraph, 4 sentence should read “We’ve had 3 workshops and In Taxation Minutes several council meetings but no hard proposals have been proposed.” Last page, last paragraph “Lymangood” should be replaced with “Hudok” Page -5- CITY OF CORCORAN CITY COUNCIL MEETING December 13, 2007 VOTE ON MOTION: Voting Aye: Grabowski, Guenthner, Hudok, Jacobs and Thomas (Motion carried 5:0) CLAIMS Approval of Claims a. Escrow Claims (Fund #500) $6224.99 MOTION made by Grabowski, seconded by Hudok, to approve the escrow claims as presented, totaling $6224.99. Voting Aye: Grabowski, Guenthner, Hudok, Jacobs and Thomas (Motion carried 5:0) b. Building Inspection Claims $21,387.92 MOTION made by Hudok, seconded by Grabowski, to approve the building inspection claims as presented, totaling $21,387.92. Voting Aye: Grabowski, Guenthner, Hudok, Jacobs and Thomas (Motion carried 5:0) c. All Other Claims $ 217,925.69 MOTION made by Hudok, seconded by Thomas, to approve the all other claims as presented, totaling $217,925.69. Voting Aye: Grabowski, Guenthner, Hudok, Jacobs and Thomas (Motion carried 5:0) ADJOURNMENT Adjournment MOTION made by Grabowski, seconded by Hudok, to adjourn at 9:46 p.m. Voting Aye: Grabowski, Guenthner, Jacobs, Hudok and Thomas (Motion carried 5:0) ______________________________ Barb Larson, City Clerk Page -6-