HomeMy WebLinkAbout2018-04-12 Council MinutesCITY OF CORCORAN
City Council Meeting Minutes
April 12, 2018 - 7:00pm
The Corcoran City Council met on April 12, 2018 at City Hall in Corcoran, Minnesota.
Present were Mayor Thomas, Councilor Keefe, Councilor Dejewski, Councilor Bottema, and
Councilor LaFave.
Also present were City Administrator Martens, Public Works Director Mattson, and Director of
Public Safety Gottschalk.
1. Call to Order / Roll Call
Mayor Thomas called the meeting to order at 7:00 pm.
2. Pledge of Allegiance
Mayor Thomas invited all in attendance to rise and join in the Pledge of Allegiance.
3. Agenda Approval
City Administrator Martens noted Resolution 2018 -26 calling for a public hearing on dust control.
County Road 10 /Larkin Road intersection to be added to item 11 g.
MOTION: made by Keefe, seconded by Dejewski to approve the agenda as amended.
Voting Aye: Thomas, Keefe, Dejewski, Bottema, and LaFave
(Motion carried 5:0)
4. Open Forum
No persons were present to speak.
5. Presentations
a. Annual Fire Department Reports
Hanover Fire Department:
Fire Chief Dave Malewicki gave a verbal presentation on behalf of the Hanover Fire Department.
Fire Chief Malewicki reported that the Hanover Fire Department has 28 members and had 43 runs
to the City of Corcoran last year. Toby Heinz has been promoted to Chief 2. Fire Chief Malewicki
explained that fire response time begins from the minute the call is placed through to the pager
until the first truck leaves the station or the first officer leaves to report to the scene. Hanover Fire
Department purchased a new Ranger this year in addition to one already existing Ranger to be
used for wildland fires and search and rescue operations. In addition, a new 4 -door Dodge was
purchased to be used for grass fires and medical responses. The City Council inquired if there
was anything the City of Corcoran could do to help the Hanover Fire Department meet its goals
for 2018. Fire Chief Malewicki responded that their biggest need is more day -time officers. The
City Council suggested this information be included in the City of Corcoran newsletter.
Loretto Fire Department
Fire Chief Jeff Leuer gave a verbal presentation on behalf of the Loretto Fire Department. Fire
Chief Leuer reported that the Loretto Fire Department has 33 members and had 50 runs in
Corcoran last year. Fire Chief Leuer reported that Loretto's average response time is 6 minutes
and 21 seconds and is measured by the time when pagers are notified of a call to when a
firefighter arrives on scene. Last July, the Loretto Fire Department added a new rescue pumper to
its vehicle inventory which helped its ISO rating. The Loretto Fire Department participates in a
training program with three other nearby departments: Mound, Maple Plain, and Long Lake. In
addition, officers go through a leadership academy every quarter with the three other
departments. Fire Chief Leuer reported that they consulted a station feasibility study for their
current station that was built in 1980. He also reported that they recently purchased $90,000
worth of new radios that have a 10 year life expectancy. Air packs will be up for replacement in
2019 the Loretto Fire Department will intend to fund these using grant money. Fire Chief Leuer
informed the Council that there will likely be future issues and considerations regarding cancer in
firefighters as a result of the carcinogens in smoke and toxins released by burned materials. The
Council inquired why call rates were highest on Sundays and Mondays and Fire Chief Leuer
responded that the days of highest calls change frequently.
Rogers Fire Department
Fire Chief Brad Feist gave a verbal presentation on behalf of the Rogers Fire Department. He
shared that the Rogers Fire Department hired three new firefighters in January who are currently
in training. Fire Chief Feist noted that the cost of firefighter training is $5,500 per firefighter so
retention is a considerable focus. He also noted that iPads have been added to all firetrucks that
gives officers a narrative of the call, a map of the location, and a tracker of each engine coming to
the scene. He added that they are soon replacing their air packs with the goal of the new ones
being up to NFPA and OSHA standards. Fire Chief Feist noted that the new $6,000 air packs last
15 years and the Rogers Fire Department will need 28 packs. He also mentioned that the Rogers
Fire Department had to buy new radios for 2/3 of the fleet and will need to buy 11 -15 radios next
year. The cost of this year's radios was approximately $115,000. Fire Chief Feist noted that
Hennepin County is now adding encryption to radios due to communications with police
departments. In addition, Fire Chief Feist shared that Rogers Fire Department purchased a new
$391,000 tanker that will arrive in September. This tanker can carry 3,000 gallons of water and
will last 25 years. The Rogers Fire Department has 39 members, but will be looking to add 2 more
this year and have a goal of 50 members by 2023. Rogers Fire Department responded to 59 calls
in Corcoran last year. Fire Chief Feist also shared that they now have a LSU trailer in Rogers to
monitor the health of firefighters after a call and shared the same concerns about cancer and
carcinogens while sharing with the Council that these health findings will likely cause changes in
operation moving forward. The Council inquired if any residents of Corcoran serve on the Rogers
Fire Department and Fire Chief Feist responded that they have one member from Corcoran. The
Council also inquired if they were working with Director of Public Safety Gottschalk on the fire
study and Fire Chief Feist reported that they were.
6. Consent Agenda
a. Draft Minutes of March 22, 2018 Council Meeting
The Council noted a typo in a previous resolution to be corrected.
MOTION: made by Keefe, seconded by LaFave to approve the draft minutes for the March 22
Council Meeting.
Voting Aye: Thomas, Keefe, Dejewski, Bottema, and LaFave
(Motion carried 5:0)
7. Claims as Presented
a. Escrow Claims (Fund #500)
MOTION: made by Bottema, seconded by Dejewski to approve escrow claims as presented.
Voting Aye: Thomas, Keefe, Dejewski, Bottema, and LaFave
(Motion carried 5:0)
b. All Other Financial Claims
MOTION: made by LaFave, seconded by Keefe to approve all other claims as presented.
Voting Aye: Thomas, Keefe, Dejewski, Bottema, and LaFave
(Motion carried 5:0)
8. Staff Reports/ Memos/Commissions
a. Commissioner Representatives
The Council acknowledged Parks and Trails Commission Representative Judy Strehler and
Planning Commission Representative Dean Jacobs.
b. Financial Performance Report
City Administrator Martens presented the quarterly financial performance report and noted that
there were engineering-related investments that resulted in a higher cost than expected related to
updating design plates for infrastructure.
9. Planning Business
No planning business was presented.
10. Unfinished Business
No unfinished business was presented.
11. New Business
a. Public Hearing Proposed Property Tax Abatement; Sale of 2018A Bonds
City Administrator Martens presented on the proposed property tax abatement for the issuance of
debt for the 2018-2019 Capital Improvement Plan and the purchase of 20400 County Road 50.
Minnesota statute requires a public hearing whenever the usage of tax abatement bonds is
proposed. City Administrator Martens stated that the City Council approved the purchase of
20400 County Road 50 for $1,430,000 and use of $250,000 from the park fund, resulting in a
remaining $1,180,000. The par amount of bonds would be $1,865,000. Tammy Omdal from
Northland Securities addressed the Council to describe the tax abatement process. Tammy
Omdal explained that for the City Council to have authority to issue bonds to finance bonds for
purchases, they must do so through a tax abatement project. By approving the proposed
resolution, the City Council is approving a levy on taxes to service the debt. In order to do so, a
public hearing must be held and a geographic area called a tax abatement project area bust be
defined. She also noted that the maximum term for tax abatement is 15 years, which is less than
what the resolution calls for to allow for contingency if conditions change. The Council stated that
in the abatement process there is delineation of certain residences and inquired if the tax
statement for those residences look different or unique in any way. Tammy Omdal responded that
the abatement tax is spread on the same tax base in rolled into the general fund. Parcels that
appear on the notice of the geographic area of the tax abatement do not pay more or less in taxes
and the delineation is simply required by the legislature to identify a reasonable benefit for those
areas. City Administrator Martens shared the next steps for this process and are as follows: bond
rating call in late April, receive the bond rating on May 2, have a bond sale on May 10, close on
bonds on May 31, and close on the land purchase on June 1. The Council inquired about the
bond rating and what the City can do to get the best rating. The Council discussed increasing the
budget reserve that is currently at 35% and inquired if doing so would impact the bond rating the
City of Corcoran would receive. Tammy Omdal stated that one consideration of the bond rating is
the long-term trends of the budget reserve fund and suggested that it is more important to have
positive trends in the budget reserve fund percentage rather than the highest percentage. The
Council inquired how much of an increase from the budget reserve fund would be a factor in
getting a better rating. Tammy Omdal explained that since the City of Corcoran is already in the
target amount for budget reserve funds, it would be more important to monitor the trends of those
funds and increasing the percentage of budget reserve funds it would only be beneficial if it could
be sustained over time. The Council also inquired about how much of a difference there is of
percentage points between an Al rating and the next tier. Tammy Omdal explained that currently
the difference is not very significant but could be meaningful over the long-term since the spread
can widen depending on the market. Mayor Thomas opened the public hearing. Dorothy Theis,
9530 Cain Road, addressed the Council and stated that the Crow River News reported that the
City of Corcoran was going to go for a bond of $2,125,000 and the packet now says the bond will
be for $1,850,000 and inquired why there was a difference. She also inquired about not using
more money from the park allocation fund, as well as funds coming from other cities from
participating in soccer and funds from Bass Lake Crossing, Bass Lake Crossing South, and
Encore. John Dahl, 6330 Willow Drive, addressed the Council and shared that he does not
support taking out loans and inquired why the Council did not use more money from the park
dedication fund. Mavis McGee, 6951 County Road 101, addressed the Council and inquired about
the time frame for pay back on these types of bonds. Dean Jacobs, 20415 Duffney Circle,
addressed the Council and asked if the City of Corcoran has estimated the levy particular to the
bond issuance and applied it to the median value of a home in Corcoran to get an estimation on
how much this would cost each Corcoran resident individually. Phil Bongaarts, 19949 Larkin
Road, addressed the Council and inquired why the City was taking out a bond larger than the
price of the park. Bonnie Maue, 7450 Kalk Road, addressed the Council and inquired if the City of
Corcoran was still planning on buying the Roehlke property for park purposes and if the City was
going to do the Rockford School District purchase in lieu of the Roehlke property or in addition to
it. City Administrator Martens responded that the change in what was reported was due to the
allocation of money from the park dedication fund. City Administrator Martens also responded that
the amount to be used from the park dedication fund was a Council decision and that the City of
Corcoran was considering a potential investment in 2019 and potential future projects that the
funds were being set aside for. He explained that there is a higher rate for non-residents who
participate in soccer in Corcoran and some of the money does go to the City of Corcoran. In
addition, the City is receiving money from phase 1 of Bass Lake Crossing, but have not received
funds from phase 2 of Bass Lake Crossing, Bass Lake Crossing South, or Encore. City
Administrator Martens responded that the time frame for the capital equipment was 10 years and
the time for the park purchase was 15 years. He also responded that the City of Corcoran has not
estimated the cost per resident for the tax levy, but that a large park purchase was in the 5-year
financial management plan and that a stable tax rate was already figured into the budget. City
Administrator Martens responded that there is no initiative from the City of Corcoran to follow
through with purchasing the Roehlke property. Tammy Omdal addressed the Council and clarified
the resolutions set forth for these topics. She stated that Resolution 2018-24 set the amount that
the City of Corcoran can approve for facility acquisition and improvements as up to $1,555,000.
The second resolution authorizes the sale and authorizes that total bonds at $1,865,000, including
$615,000 for equipment and $1,250,000 for the abatement. She noted that this is less that the
amount in the first resolution in order to remain flexible if there were any changes. The Council
inquired whether these amounts can be changed in the future. Tammy Omdal responded that the
City can spend less than what they had allotted, but not more without another public hearing.
MOTION: made by LaFave, seconded by Dejewski to close the Pubilc Hearing.
Voting Aye: Thomas, Keefe, Dejewski, Bottema, and LaFave
(Motion carried 5:0)
MOTION: made by Dejewski, seconded by Keefe to approve Resolution 2018-24 approving the
property tax abatement related to the acquisition and development of public facilities within the
city.
Voting Aye: Thomas, Keefe, Dejewski, Bottema, and LaFave
(Motion carried 5:0)
MOTION: made by Bottema, seconded by Keefe to approve Resolution 2018-25 providing for the
issuance and sale of approximately $1,865,000 general obligation bonds.
Voting Aye: Thomas, Keefe, Dejewski, Bottema, and LaFave
(Motion carried 5:0)
b. 2018 Dust Control Program
City Administrator Martens gave a verbal presentation on the 2018 Dust Control Program. He
shared that the proposed project involves applying a chloride product to 27 of the 34 miles of
gravel road in Corcoran. The estimated cost of the project is $109,950 and the City of Corcoran's
share of that is $68,375. The proposed schedule for the dust control program is to hold a public
hearing on May 10, apply the product in mid-June, and bill the properties based on actual project
costs in July.
MOTION: made by Keefe, seconded by Dejewski to approve Resolution 2018-26 calling for a
public hearing on the potential assessment of costs of dust control treatments to be applied to city
streets in 2018.
Voting Aye: Thomas, Keefe, Dejewski, Bottema, and LaFave
(Motion carried 5:0)
c. 2018 Pavement Overlay Project
Public Works Director Mattson gave a verbal presentation on the 2018 Pavement Overlay
Program. He stated that on March 8th, the Council approved a feasibility study for the 5-year CIP
for Municipal State Aid (MSA) funding. One goal of the study was to review options for project
work that was warranted and eligible for MSA construction funds that could be completed for 2018
to draw down the construction account balance below $1.5 million. During preliminary analysis, it
was evident that completion of an enhanced pavement overlay project on previously constructed
MSA projects were prime candidates. Those locations are Larkin Road from Old Settlers to
County Road 116 and Rolling Hills Road from north of the Horseshoe Trail to County Road 50.
Staff is requesting the overlay project ahead of delivering the MSA feasibility study to expedite the
design and bidding process. The feasibility study will continue to review bridge replacement
projects as part of the MSA 5-year CIP. A budget of $160,000 was established for a Larkin Road
overlay in the 2018 General Fund. The estimated project cost is $475,000, including engineering
and construction administration. This exceeds the $361,491.18 amount targeted to draw down the
MSA account balance in 2018. All costs are eligible for MSA reimbursement. The anticipated
schedule is for the council to authorize the plans and specifications on April 12th, the Council to
accept the plans and authorize the bid on May 10th, bid the award on June 14th, and begin
construction in July-October. The Council inquired about the process for overlay. Director of
Public Works Mattson explained that this process would be considered an enhanced overlay
meaning they would pave down 3/4to 1 inch of the road and reapply 1 inch of pavement to
smoothen the road and enhance rider comfortability. In addition, this process is used as pavement
management and will lengthen the life of the road. This process is estimated to add 10-15 years
to the road. The council inquired about how the City of Corcoran plans on managing the existing
$160,000 that was budgeted for this project with the MSA funds. Director of Public Works Mattson
explained that the entire project will be funded with MSA and the Council will discuss what to do
with the remaining $160,000.
MOTION: made by Dejewski, seconded by Bottema to authorize the plans and specifications for
the 2018 Pavement Overlay Project as recommended.
Voting Aye: Thomas, Keefe, Dejewski, Bottema, and LaFave
(Motion carried 5:0)
d. Discussion on Compensation for Commissioners
City Administrator Martens discussed whether or not the Council feels it is appropriate to
compensate commissioners. Currently, the City of Corcoran has 5 Planning commissioners, 7
Parks and Trails commissioners, and 1 Elm Creek Watershed commissioner. To guide the
proposal, the City of Corcoran looked at compensation of commissioners from nearby cities and
used the same cities that were identified when determining City Council compensation. From
reviewing nearby cities, it was discovered that most cities either do not pay their commissioners or
pay approximately $25-$30 per meeting. If Corcoran were to pay commissioners $25 dollars a
meeting, it would result in an annual budget impact of $1,500 for Planning commissioners, $2,100
for Parks and Trails commissioners, and $300 for Elm Creek Watershed commissioner.
The Council discussed merits for compensation and declined a motion making changes at this
time.
e. Playground Provider Selection and Budget
City Administrator Martens gave a presentation on the Ravinia neighborhood and open space
park. City Administrator Martens noted that the City selected Wenck Associates for a concept
design and the Parks and Trails commission reviewed options for playground providers. The
Parks and Trails commission recommends playground provider St. Croix Recreation/Burke.
MOTION: made by Bottema, seconded by Dejewski to select St. Croix Recreation/Burke as the
playground provider for the Ravinia neighborhood park and authorize staff to execute contracts;
authorize staff and the Parks and Trails Commission to complete the final design; and approve a
budget of up to $85,000 for playground equipment.
Voting Aye: Thomas, Keefe, Dejewski, Bottema, and LaFave
(Motion carried 5:0)
f. 2017 Surplus Allocation
City Administrator Martens gave a presentation on the 2017 budget surplus. He stated that there
is a $360,776 surplus from 2017 derived from: $60,000 budgeted surplus; $165,000 building
permits; $24,832 land use applications; $8,000 ice control; $54,354 LMC insurance payment;
$15,000 donations. Of this, $15,000 is allocated and there is $345,776 yet to be allocated. City
Administrator Martens noted that the financial management plan calls for a 35% minimum in the
budget surplus reserve which was achieved in 2017. The budgeted surplus of $60,000 increases
the amount in the budget surplus reserve to 36.3%. Options for the budget surplus would be to
increase the amount in the budget surplus reserve, allocate funds to the long range planning fund,
and allocate funds to paving gravel roads. The Council discussed how much should be allocated
to the budget reserve fund.
MOTION: made by Thomas, seconded by Keefe to allocate $60,000 to the budget reserve fund
and the remaining amount to the long range planning fund.
Voting Aye: Thomas, Keefe, Dejewski Voting Nay: Bottema, LaFave
(Motion carried 3:2)
g. County Road 10 /1-arkin Road Intersection
City Administrator Martens discussed the traffic accident near the County Road 10 and Larkin
Road intersection that occurred recently. Director of Public Works Mattson stated that the City of
Corcoran reviewed two options on evaluating the intersection. He recommended a technical
memo feasibility study to evaluate the advantages and disadvantages from a traffic operations
perspective of closing off Larkin Road from County Road 10 from Wenck Associate and their
transportation specialists. Staff recommends a $2,000 study including $1,000 for the technical
memo and an additional $1,000 for the turn movement data. The Council discussed inquiring with
the residents and business on Larkin Road first before agreeing to the feasibility study and shared
reluctance moving forward without certainty of being willing to implement the suggestions.
MOTION: made by Dejewski, seconded by Thomas to approve $2,000 towards a feasibility study
for the County Road 10 and Larkin Road intersection.
Voting Aye: Dejewski Voting Nay: Thomas, Keefe, Bottema, LaFave
(Motion not carried 1:4)
12. 2018 Council Schedule
City Administrator Martens reviewed the upcoming schedule.
13. Council Liaison Calendar
The Council liaison calendar was not reviewed, but was available in the Council packet.
14. Adjournment
MOTION: made by Bottema, seconded by LaFave to adjourn.
Voting Aye: Thomas, Keefe, Dejewski, Bottema, and LaFave
(Motion carried 5:0)
Meeting adjourned at 9:30 pm.
Brad Martens — City Administrator