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HomeMy WebLinkAbout2019-05-23 Council MinutesA ,r �Ufa CITY OF CORCORAN City Council Meeting Minutes May 23, 2019 0 7:00 pm The Corcoran City Council met on May 23, 2019, at City Hall in Corcoran, Minnesota. Present were Mayor Thomas, Councilor Bottema, Councilor Dejewski, Councilor Keefe, and Councilor Schultz. Also present were City Administrator Martens, City Planner Lindahl, Administrative Services Director Beise, 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 MOTION: made by Schultz, seconded by Bottema to approve the agenda. Voting Aye: Thomas, Bottema, Dejewski, Keefe, and Schultz (Motion carried 5:0) 4. Commission Representatives Mayor Thomas noted Planning Commissioner Jacobs was excused; Parks and Trails Commissioner Strehler was present at the meeting. Mayor Thomas invited Commissioner Strehler to speak on items related to the Parks and Trails Commission. 5. Open Forum Mayor Thomas invited residents to speak. No residents came forward. 6. Presentations /Recognitions a. Years of Service Recognition — Ryan Burns, 25 Years Mayor Thomas presented Lieutenant Burns with a years of service award and thanked him for his service. b. 2018 Audit Justin Nilson thanked staff for their help with preparing for the audit; thanked Council for allowing Abdo, Eick & Meyers to complete the audit. Mr. Nilson, noted Abdo, Eick & Meyers issued an unmodified opinion for 2018, which is defined as a clean opinion, and is the most positive opinion. Second opinion Abdo, Eick & Meyer is required to give as auditor regarding Minnesota Legal Compliance, includes testing and review of City paying bills timely, testing of contracts and bids to make sure bidding is done correctly, and collateral coverage testing. Regarding collateral coverage testing, a finding of $350,000 gap in collateral coverage was discovered and staff is addressing the issue. Abdo, Eick & Meyers, has removed a previous finding, due to the change in staffing and internal review. Abdo, Eick & Meyers final observation included reviewing City policy for maximum paid time off, or PTO accrual, and determine whether changes should be made to the policy, and to build the policy to include approval by city administrator for PTO accruals if needed. City Administrator Martens gave example of public works having accrued PTO at the end of the year, and with time off planned at end of the year, with an unexpected snowfall, which may impact scheduled time off, causing PTO accruals to go over. The City has a minimum of 35 percent General Fund unrestricted and unassigned balance as it compares to the future year's budget, and is currently on a positive and steady increase and is above the minimum fund balance policy, which is on a positive trajectory or on a good trend. Unassigned funds can be used to spend at will. City Administrator Martens indicated unassigned funds were currently for long range planning funds. Council commented the difference between the two is really the value of the unrestricted monies that are there. The year in review of budget to actual of General Fund includes an increase of about $450,000 positive budget variance revenue, relating to some of the permits and development happening in the City. General Fund expenditures are on an inflationary curve, but are positive. Capital Projects Fund balance lands at approximately $5.3 million and slated for restricted use, for developments in Corcoran such as Bellwether development. Special Revenue Fund balances are committed for future or restricted items. Enterprise Funds, including Water Fund Cash Balances indicate a good trend to continue growth of funds for future capital related items. Sewer Fund Cash Balances maintains climbing resources with sufficient rates for future expenses. Cash and Investments Balances by fund type are broken out and split equally. Fiduciary Funds are earmarked and held for developers, for such items as driveways, etc. Council commented the City has low debt, and represents early growth stage. Corcoran tax rates were lower than Class 4 cities, but higher in the tax per capita, and higher than most class 4 cities, meaning Corcoran is at lower rate with a higher capita basis. Council replied if City had a larger business tax base, per capita would then be smaller; an example was shared of City receiving 40 percent of revenue from businesses, the per capita would decrease. Council discussed the bond proceeds for water and sewer balances, and if the balance remaining is for a specific purpose. City Administrator Martens responded by explaining when the Ravinia development began, the City needed to bond funds for the sewer lift station. City Administrator Martens recalled it was approximately $1.4 million, to sustain the revenue working capital in the account. City Administrator Martens stated the sewer balance is unspent bond proceeds and is meant to remain in the account for working capital purposes. Staff will review water fund balance and report back to Council. Mayor Thomas thanked Abdo, Eick & Meyers for the work on the 2018 audit findings and thanked staff for efforts 7. Consent Agenda a. Draft Minutes of April 11, 2019 Council Meeting b. Draft Minutes of May 9, 2019 Council Meeting c. Financial Claims d. Acting City Administrator Appointment e. Resolution 2019-39 — Sponsoring the Northwest Trail Association f. Northeast Truck Sewer Improvements — Approve Change Order 1 and Pay Request 5 g. Downtown Corcoran Sewer and Water Improvements — Approve Change Order 1 and Pay Request 15 Council requested review of item 7b. MOTION: made by Dejewski, seconded by Schultz to approve the consent agenda consisting of items 7a., 7c., 7d., 7e., 7f., and 7g. Voting Aye: Thomas, Bottema, Dejewski, Keefe, and Schultz (Motion carried 5:0) Council requested clarification to item 7b. Draft Minutes May 9, 2019, on last sentence on page 3, item 1 Oa. , include in sentence to clarify statement as, could be considered for the 2020 budget; on page 4, in the two last sentences of paragraph 10b., restructure sentence flow; on page 5, item 1 Od. , after motion was made accepting resignation of Commissioner Dorothy Theis, include additional wording as, to thank her for her service on the Planning Commission. 0, MOTION: made by Schultz, seconded by Bottema to approve item 7b. Draft Minutes May 9, 2019 with reauested changes. Voting Aye: Thomas, Bottema, Dejewski, Keefe, and Schultz (Motion carried 5:0) City Administrator Martens noted Council had not yet voted to accept the audit. MOTION: made by Keefe, seconded by Bottema to accept the 2018 audit findings by Abdo, Eick & Meyers. Voting Aye: Thomas, Bottema, Dejewski, Keefe, and Schultz (Motion carried 5:0) 8. Planning Business a. Final PUD and Final Plat for Ravinia 11th Addition Greg Hoglund, 19220 Hackamore Road, and owner of 6301 County Road 101, stated his concern over impact of water erosion to neighboring homes surrounding the development. Mr. Hoglund applauded Planning Commission and Council on how they openly debated and discussed the recent, requested change by Lennar from 75 foot lot size to 55 foot lot size in the Ravinia 11 th Addition. Mr. Hoglund expressed request for more discussion on Lennar's request for 55 foot lot size in the Ravinia 11 th Addition. Mr. Hoglund feels 55 foot lot size is subpar. Mr. Hoglund stated the Nichols property needs to be cleaned up of junk and be removed. Mr. Hoglund further expressed if water erosion becomes an issue on this property he owns at 6301 County Road 101. Mr. Hoglund will contact Minnesota Pollution Control Agency if there are erosion issues. City Planner Lindahl discussed the final plat and final PUD development plan for Ravinia 11th Addition. Ravinia 11 th Addition is located just south of the current Ravinia development and is an addition to the Ravinia development. Original concept plan included 15 lots and at the discussion in February, there were concerns raised regarding the 15-foot drainage and utility access easement along the south property line. In order to preserve the easement in the final plat, the developer removed a lot and pulled roads and retaining walls north, so easement remains free on any obstructions. The subdivision is a mix of lot sizes as a result of the changes, including 65-foot lots and a few 55-foot lots for the 2-car Discovery units. There are currently 14 developable lots with 1 undevelopable lot in the temporary turn around, which will be developable once property to the south is developed. The developer will be required to preserve right-of-way to end of the property on south side property line which will mean revising the plat. Applicant has been working with the City and watershed district on wetland buffer issues, with some modifications to wetland boundaries, and is a condition of approval. The 2-car Discovery and the Landmark model units were approved for this phase, with the Discovery 3-car garage was denied by Council. Council asked which lots were 55 foot lots and 65 foot lots respectively. Paul Tabone, Lennar Corporation, clarified two lots would accommodate the 65 foot lot sizes. Council inquired about debris on Nichols property that Mr. Hoglund mentioned, and if debris could be removed. City Administrator Martens indicated the current owner of the property would be responsible for removing debris from Mr. Hoglund's property and staff could look into Mr. Hoglund's complaint. MOTION: made by Dejewski, seconded by Bottema to approve Resolution 2019-40 Approving Final Planned Unit Development (PUD) Plan for Ravinia 11th Addition for Lennar Corporation (PID 36- 119 -23 -44 -0012) (City File 19-005). Voting Aye: Thomas, Bottema, Dejewski, Keefe, and Schultz (Motion carried 5:0) Council discussed smaller home sizes, how far garages are allowed to protrude from the house, and the difference between home sizes in the Ravinia 11 th Addition compared to Ravinia 8th 3 Addition and flow of neighborhood from smaller homes to larger homes within the Ravinia development. MOTION: made by Keefe, seconded by Dejewski to approve Resolution 2019-41 Approving Final Plat and Development Contract for Ravinia 11th Addition for Lennar Corporation (PID 36- 119- 23 -44- 0012) (City File 19-005). Voting Aye: Thomas, Bottema, Dejewski, Keefe, and Schultz (Motion carried 5:0) b. Sketch Plan Review and Topography and Wetland Waivers for 22505 Strehler Road City Planner Lindahl reviewed an application request to divide a 118 -acre parcel into 2 parcels. A variance is required to create lot two without frontage on a public street. Access would be via a 66- foot wide easement on the Kienitz property. Typically easements are not allowed to accommodate for inaccessible access to a parcel, and Council is asked to weigh in on this request. Currently there would only be one home accessing the easement, but Council may need to consider multiple homes on the private drive over a private easement in the future. Additionally, between the 40- and 80-acre split parcels on the 2040 Comp Plan, there is a planned off-road trail. Parks and Trails Commission may require a park fund dedication of a 20-foot trail easement within the 118 -acre parcel split, most likely on the 39.59-acre portion, but decision will be for the Parks and Trails Commission to action on. The off-road trail follows along Strehler Road on the north, and when/if a subdivision application is received, and when the plat comes in, Council may decide to take right of way, or may decide to defer it at a future subdivision date. Applicant and representative were present for questions. City Planner Lindahl noted the applicant is looking for Council position before they proceed with costs to plat and obtain easement. Council discussed other properties with driveway easements in Corcoran. City Planner Lindahl said in the last 15 years, the City has not approved similar driveway easements, as historically driveway easements have created problems. From a staff perspective, a single home accessing the private drive is not as concerning as multiple homes accessing private drive with easements. Council inquired about the benefit of landowner having the easement recorded and managed by the County, and how the easement protects everyone in the future. City Planner Lindahl indicated when plat comes in for approval, the City will require a copy of the access easement, and review with city attorney to insure it is in perpetuity to serve the property and is recorded as such for future landowners; the Council can also make a condition for a driveway easement for a single home as part of the plat if they chose. MOTION: made by Keefe, seconded by Schultz to approve Resolution 2019-42 Approving A Topographic Survey and Wetland Delineation Waiver for "Strehler" Subdivision (PID 20- 119- 23 -14- 0001) (City File 19-008). Voting Aye: Thomas, Bottema, Dejewski, Keefe, and Schultz (Motion carried 5:0) Council further discussed a shared driveway agreement if the easement becomes an access for proposed two homes or more, and then discussed the process would follow City ordinance pertaining to shared driveway agreements. c. Guidebook for Self-Tour of Residential Developments City Planner Lindahl explained the 2003 guidebook received updates reflected in 2019 for residential developments. The new version includes focus on low -to- medium density urban sewered single family residential development setbacks; how communities are dealing with side yard setbacks, lot sizes and lot widths. The guidebook provides real world view examples of residential developments with different densities and design constraints. Most cities designate what is appropriate at the time through Planned Unit Developments. For example, townhomes and villa homes are making a comeback in the marketplace and developers are indicating the current market 4 is leaning towards smaller lots and smaller lot widths, such as 45- or 50-foot lots. As the City updates its zoning ordinances, the City needs to understand the residential marketplace. City Planner Lindahl further expanded on Corcoran's setback standards, and discussed the differences between, 10 -foot, 14-foot, and 16-foot separation between houses, and how it is important to think about impact on the character of neighborhood regarding setbacks. The garage ordinance in Corcoran limits the garage face of the house to not more than 55 percent of the house face can be garage space. City Planner Lindahl further explained if there is a typical 32-foot garage, with setbacks, the lot size would need to be approximately a 100 -foot lot size, to make the face of the house larger than the face of the garage. This increases the cost of housing, which limits the market and makes it difficult to manage the density goals included in the comprehensive plan. If three-car garages are desired in Corcoran, which seems to be the consensus, as the ordinance is reviewed, Council needs to review this requirement and the limitations associated with the ordinance. In reviewing the garage ordinance, Council should decide if it more important if the percentage of the house face that is garage be limited, or is it more important the garage is not in front of the house, or are other design elements more important. Additional considerations were front and side yard setbacks. City Planner Lindahl further reflected most cities do not have the same detail design standard in their standard zoning as Corcoran does. The detailed design standards that Corcoran maintains, increases the design cost and increases housing costs. City Planner Lindahl recommended to sustain a healthy community different options need to be provided for different life stages and families. City Planner Lindahl reiterated the importance and difference of zoning district standard and design district standards and how they should balance. City Planner Lindahl also stated staff will need direction determining standards that need to change, such as setbacks, and revising PUD flexibility to reduce requirements from existing standards. City Planner Lindahl also stated Council needs to provide direction to update the zoning ordinance, and policy direction to assist developers looking for land in Corcoran. City Planner Lindahl did not request any action at this time, but indicated direction from Council will be necessary in the next one to two months. Council addressed development density ranges in Corcoran, and what the maximum buildout is to get to the lowest number density comparison, for example with Ravinia and Bass Lake Crossing. Council reviewed target densities and how that changes lot sizes in a particular phase of a development. City Administrator Martens proposed staff could present at a Council work session the questions Council has addressed. Council discussed how design standards impact open space developments versus homes equally spaced on the developed property, and how size of houses are interspersed within developments. Council inquired about PUD requirements and what other cities receive from developers regarding PUD requirements. City Planner Lindahl indicated you can negotiate upgrades to streets, landscaping, etc., through PUD negotiations. Council inquired about the 55 percent rule for garage face and when that was included in design standards. City Planner Lindahl responded it was during her leave in 2010-2011. City Administrator and Council agreed a Council Work Session was necessary to discuss design standards and zoning standards. Per consensus, a work session was scheduled for July 25, 2019, at 5:30 pm. d. City Initiated Development Rights Program and Open Space Preservation Ordinance City Planner Lindahl reviewed what has been presented to date regarding changes to the Development Rights map and the ordinance changes related to development rights and to the Open Space and Preservation Plats. City Planner Lindahl explained the existing development rights map includes one developable right per 10 -acres on a paved road, one developable right per 30 acres on a gravel road. City Planner Lindahl stated the existing development map is based on a historic handwritten map, and was initiated in approximately 1982 and reset in 1991. City Planner Lindahl and staff, reviewed each parcel on gravel roads, and reviewed any previous use of 5 development rights. City Planner Lindahl noted the importance that many parcels show development rights, without subtracting the existing home on the property. For example a current application request includes a 40-acre parcel on Rolling Hills Road and the development rights map indicates four development rights. As there is an existing home on the property, the existing home and three additional rights would equal the four development rights indicated on the development rights map. City Planner Lindahl clarified development rights on the Kientiz property, 8100 Strehler Road, between Trail Haven and Strehler Road. Currently the development rights map shows three development rights and is incorrect. The subdivision for Dan Hammond's property, and when it was subdivided in 2003, only the south half of Kienitz property was included, so that acreage is what the development rights were based from. What wasn't included or counted in the development rights total, was the north 80 acres and connected development rights, so three development rights would have remained for the southern parcel section and zero for northern parcel section. City Planner Lindahl indicated, upon review of the total development rights within the original parcel, there should have been a total of 18 development rights, one was used for the Dan Hammond property, with a corrected 17 remaining development rights on the remaining Kienitz property. Other parcels originally indicating zero development rights and have changed to four development rights, such as the 40-acre parcel, because of the transition from gravel to paved roads in Corcoran. Council expressed concern over development rights on parcels transitioning from gravel to paved roads. City Planner Lindahl stated minor edits would be made, with ordinance and map updates for the June 27, 2019 Council meeting for adoption. 9. Unfinished Business ;11107-ms =- 10. New Business a. Code Enforcement Appeal Administrative Services Director Beise updated Council on a code enforcement appeal action from a May 1 inspection, and site visits on May 13 and May 23. Violations of inoperable vehicles, vehicle storage in the front yard, and garbage or refuse on property were found and photos were provided. June 5 was set forth as the deadline for compliance from Appellant David Schodde. City Administrator Martens clarified action for the appeal, and that Council needs to determine if there is a code violation, and may accept the draft mitigation plan submitted by Appellant, for review by staff. Council reviewed findings and if there is a code violation. Council requested to hear a statement from Appellant. David Schodde, 9605 County Road 101, Corcoran, does not disagree with findings of code violation, but does disagree with reference to items referenced on property as garbage, and then Appellant presented Council with a draft mitigation plan completed by Appellant. Council explained at this point, Council needs to determine if there is a code violation, and then approve moving forward with enforcement. Mr. Schodde stated he would like to keep his items, be sensitive to the City's needs, and he thought by appealing, the date of compliance would be halted, and he could move forward with a clear mission, and also understand what is meant by garbage. Council indicated to Mr. Schodde it would be in the City's best interest to work with him to clean up property to adhere to the City's ordinance on refuse on property, and the June 5 compliance date could be postponed to a later date in the final mitigation plan. Council thanked Mr. Schodde for attending the Council meeting. City Administrator Martens reiterated staff recommendation for Council action, is to deny the code compliance appeal, and receive the draft mitigation plan from Mr. Schodde. Council discussed what constitutes inoperable vehicles. Administrative Services Director Beise referred to City Code on inoperable vehicles. Council addressed desire to stand behind staff, but also expressed an appreciation to Mr. Schodde for his approach to the code violation action. 6 MOTION: made by Bottema, seconded by Schultz to deny the code enforcement appeal by Appellant Mr. Schodde and recognized draft mitigation plan submitted by Mr. Schodde. City Administrator Martens clarified to Mr. Schodde, the compliance deadline will be postponed from the June 5 date, and City staff will coordinate with him on final mitigation plan. Voting Aye: Thomas, Bottema, Dejewski, Keefe, and Schultz (Motion carried 5:0) b. Low Cost Paving Options Public Works Director Mattson presented low cost paving options with consideration and evaluation of cost effectiveness, life expectancy of the road, and implementation/street selection recommendations. Public Works Director Mattson shared with Council all road sections in Corcoran are inherently different, and existing site conditions should be evaluated on an individual basis for the best-value improvement option. Using an average cost of $75/LF, an estimated low-cost would be $400,000 on average to pave a mile of gravel road to achieve a 15-20 year life expectancy with ongoing routine maintenance. Public Works Director Mattson indicated focusing on four categories: higher traffic collector roads such as Trail Haven Road or Willow Drive; incomplete paved road segments such as Corcoran Trail East and West and Cain Road; isolated paved road segments such as Wagon Wheel Lane and Park Trail Road; and rural MSA roads with increasing traffic volumes such as Horseshoe Trail. Council asked for further clarification on the $75/LF and the options for paving. Public Works Director Mattson responded with depending on road needs, a determination would be made for type of paving needed. Council inquired about the labor cost to City on collector roads and residential roads, and Public Works Director Mattson referred to information presented from a staff report from 2018, and indicated since services would be outsourced, there is no need for in-house labor. Council asked about special assessments for different paving options and if there is a way to include the assessment calculation within the pavement cost analysis report. City Administrator Martens answered the assessment question and explained assessments could be dependent of life of the road, and if subsequent assessments to roads are necessary, they would be reflective of previous improvement costs. City Administrator Martens reminded Council the Low Cost Paving option was a goal setting session set by Council earlier in 2019, and the report was provided for information purposes to the Council. Council discussed how future road paving can be funded from MSA funds. Council discussed having processes and policies in place for paving roads and following through with the vision set forth by Council. Council reviewed the opinions of residents regarding the Willow Drive pavement public hearing. Council decided a more comprehensive discussion was needed to determine how paved roads are funded, and also referenced a need to review assessment policy again and how it impacts residents. Council asked about roads designated as MSA funded and if Trail Haven Road was one of those roads and how funding is disbursed. Public Works Director Mattson explained if a treatment is completed on a MSA road then we have to follow the MSA program for example on Larkin and Rolling Hills Road. On Larkin and Rolling Hills Road we couldn't reconstruct, we had to do enhanced overlay without full reconstruct. If we haven't had a MSA improvement on road, we could do a locally funded project on that road. If MSA monies are spent the pavement section will have to go through design requirements, additional analysis, and testing requirements. City Administrator Martens asked what information Council needs from staff to make an educated decision on this type of project, and noted examples of suggested information, such as level of assessment and speed limits. Council also asked for roads the City can pave and traffic counts on those roads. c. Union Negotiation Council Liaison Council member Schultz volunteered to participate as the Union Negotiation Council Liaison. 7 11. Staff Reports a. Planning Project Update 12. 2019 Council Schedule City Administrator Martens reviewed the Council schedule. Council Liaison Calendar The Council liaison calendar was not reviewed but was available in the Council Packet. 13. Adjournment MOTION: made by Keefe, seconded by Schultz to adjourn. Voting Aye: Thomas, Bottema, Dejewski, Keefe, and Schultz (Motion carried 5:0) Meeting adjourned at 9:31 pm. Mic Ile Friedrich — Deputy Clerk 8