City Council Minutes

Pursuant to due call and posted notice thereof, the regular meeting of the Victoria City Council was called to order at 6:30 p.m. by Mayor Hershberger Thun in the Council Chambers at 7951 Rose Street .

Members Present: Mayor: Mary Hershberger Thun; Councilmembers: Tim Amundsen, Tom O’Connor, Jim Paulsen and Kim Roden.

Absent: None.

Staff Present: Holly Kreft, Community Development Director; Cara Geheren, City Engineer; Don Uram, City Administrator and Mike Norton, City Attorney.

Others Present: Unsie Zuege, The Chanhassen Villager, Sue Orsen, The Victoria Gazette and others.
 

Mr. Uram added under his report item C. Economic Stimulus and D. Watershed District Rules.

A motion was made by Councilmember Roden, to adopt the Agenda as amended. The motion was seconded. With all members voting in favor, the motion carried. Vote: 5 Ayes, 0 Nays.
 

(3) OPEN FORUM:

None.
 

(4) VISITORS PRESENTATION:

None.
 

The Consent items were as follows:

A motion was made by Councilmember Paulsen, to adopt the Consent Agenda. The motion was seconded. With all members voting in favor, the motion carried. Vote: 5 Ayes, 0 Nays.
 

A motion was made by Councilmember Paulsen, to approve the Claims Roster in the amount of $253,379.08. The motion was seconded. With all members voting in favor, the motion carried. Vote: 5 Ayes, 0 Nays.
 

A motion was made by Councilmember Paulsen, to accept the donations to the Victoria Fire Department. The motion was seconded. With all members voting in favor, the motion carried. Vote: 5 Ayes, 0 Nays.
 

Ms. Geheren explained that a feasibility report was approved at the second meeting in December in response to a petition that was received requesting that the improvements be moved up from 2010 to 2009. She reviewed the Street Capital Improvement Plan.

Ms. Geheren showed the project location south of 78^th Street, which consists of Lilac Lane, Marigold Street, 79^th Street and 79 ½ Street. She noted the existing roads are gravel. She stated the improvements will involve the reconstruction of streets, placement of curb and gutter, and addition of a storm sewer system.

Ms. Geheren said the total assessment costs are $682,330. There are 30 assessable lots with an assessment amount of $11,375 per unit. She noted that is the maximum amount. There would be a 15-year levy of approximately $1,170 per year at a 6% interest rate.

Ms. Geheren reviewed the deferment of special assessments, which is available to properties owned and occupied by persons 65 years of age or older or retired by virtue of a permanent and total disability whose sources of income do not exceed low income limit as established by HUD. She stated that requests for deferment of special assessments must be made at the final assessment hearing and the forms are available from the city clerk.

Councilmember Roden asked what the interest rate is set at. Ms. Geheren explained that the interest is set at 2% over what the city bonds for.

Ms. Geheren talked about the potential impacts of delaying the project with respect to the Minnehaha Watershed Districts stormwater rule changes that are expected to be finalized by June 2009. She said the rule changes could result in possible added costs of $72,000 to $204,000 resulting in an additional $1,200-$3,400 per unit assessment.

Ms. Geheren reviewed the project schedule and noted construction would begin in mid May or early June.

Councilmember Paulsen commented on survey issues and asked about the center line with gravel roads. Ms. Geheren said there are no concerns in this area.

Councilmember O'Connor asked about bidding this project with the Lion’s Park project together. Ms. Geheren said if it was held off until 2010 it could be put together with another project so there is a net impact of zero. Councilmember Roden pointed out the new Minnehaha Watershed District rules could affect it if it was delayed.

Mayor Hershberger Thun opened the public hearing at 6:55 p.m.

Vince Beaudette, 1185 79^th Street, said he looks forward to an improved street. He questioned the 45% increase in project cost from 2004 to 2009. Ms. Geheren said they saw a significant increase in 2006 with asphalt prices and other costs associated with oil. Mr. Beaudette asked what the complete range of the assessment may be. Ms. Geheren said she is not anticipating seeing a reduction in the $11,375 assessment.

Councilmember Amundsen commented on there being less people doing these projects. Ms. Geheren said that makes it difficult to estimate projects.

Curtis Hansen, 1180 79^th Street and 1200 79 ½ Street, said he is in favor of the improvements. He questioned why it wasn’t completed in 2004. He stated there is an 11 1/2 % impact and the houses are depreciating. Mr. Hansen said that in his opinion it was negligent and would have been in the best interest of the community to have it done in 2004. Mayor Hershberger Thun said there were many people who signed the petition back in 2004 but didn’t understand that it was going to be a full reconstruction. Councilmember Amundsen commented on the minutes from the 2004 meeting, which stated that the costs in approximately three years could be estimated at $10,000 plus $2,500.

Councilmember Roden stated that this City Council and the prior City Council have a five year street reconstruction plan in place.

Councilmember O'Connor asked Mr. Hansen if he recommends moving forward. Mr. Hansen responded yes, 100% go forward. He noted there needs to be some accountability.

Carol VanBeusekom, 7901 Lilac, said they opposed it several years ago because of safety and asked if there is anything that can be done during the construction that would help with speed. Ms. Geheren said they do look at that and that is one of the reasons they are reommending a 24 foot wide street. She noted that they can talk more about the specifics during the design process.

Sandy Beaudette, 1185 79^th Street, asked what will happen with the lighting and the telephone poles. Ms. Geheren said that if a utility line is in the way they can require the utility company to move them and some may choose to go underground. She explained that if they order them to go underground those costs would be rolled into the 50% split assessment costs.

Ms. Beaudette asked about the trees and how residents will be able to get in and out of the neighborhood. Ms. Geheren said they don’t know the specifics on trees until they get into the detailed design work. She noted the road would be the same width as it is now and would remain in the same location.

Ms. Beaudette asked about the tiles in the front yards. Ms. Geheren said the culverts would be removed.

Ms. Beaudette asked for an estimate on underground utilities. Ms. Geheren said they will do that first when the project moves forward. Councilmember O’Connor asked what kind of impact the underground utility would have on the project time. Ms. Geheren said there is sufficient time and they look at it as part of the routine process. Councilmember Amundsen asked who the electrical provider is. Ms. Geheren said Excel Energy. Councilmember Amundsen asked if there was an option for providers. He asked for a colored overlay on where Excel and MVEC are located.

Brad Scott, 7880 Marigold Street, said he owns a construction company and encouraged staff not to go in with any assumptions that inflation has occurred in the construction business. He asked how the bid process will be conducted. Ms. Geheren said they haven’t done the detailed design work yet and the City Council would be voting on proceeding with the construction process. She stated that the notice of advertisements for bids is placed in the construction bulletin and in the local papers.

Mr. Scott asked what the assessment number is based on. Ms. Geheren explained that it is based on an estimate of what they typically see for construction costs. She said local contractors were contacted to help with the estimate of the costs.

Mr. Scott said he owns the lot that the outlet culvert goes through and has erosion concerns. Ms. Geheren said if the project moves forward she will schedule a meeting with him.

Mike Jeurissen, 1225 79 ½ Street, said he may have been the one homeowner that wanted this last time and hopes it passes this time.

Mayor Hershberger Thun closed the public hearing at 7:20 p.m.

Councilmember Roden commented on the bid process and said they have local and state policies that they have to abide by. She questioned if the lowest bid has to be taken. Mr. Norton said there was a change and they are now eligible for best value contract, but there is a process to go through and they are not presently set up for that process.

Councilmember Paulsen asked if this would be an immediate construction project and if there any stimulus funds available for a small city. Ms. Geheren said because they are talking about having this ready sooner than later and that it wasn’t currently scheduled for construction in 2009, it does meet the potential for some criteria. Councilmember Amundsen commented on the unlikely chances of getting that into neighborhoods.

A motion was made by Councilmember Paulsen, to approve Resolution 09-15, Ordering the Improvement and Preparation of Plans and Specifications for the Improvements in the Hartwood Neighborhood. The motion was seconded.

Councilmember Amundsen asked what the tax impacts are. Mr. Norton said there has to be a benefit.

Councilmember Amundsen noted there are municipalities that there is not an assessment for road reconstruction. He stated the goal is to reduce the assessment on homeowners and they are working towards getting roads built to a standard.

With All members voting in favor, the motion carried. Vote: 5 Ayes, 0 Nays.

None.
 

Ms. Kreft said this is a request by Hartman Brothers for a conditional use permit for redevelopment of the Lakeside project north of Stieger Lake Lane and south of the regional trail. She stated the Planning Commission made the recommendation that the conditional use permit be approved with the addition that parking in the area be permanent which is reflected in the Developer’s Agreement and also recommend that it be noted that the existing parking lot is temporary.

Ms. Kreft said that on January 16^th the City received a request by Hartman Brothers to consider offsetting the parking fees in lieu of the cash requirement. She noted the developer is proposing 8 parking spaces along Stieger Lake Lane for a total of 40 spaces with the municipal parking. She said that staff recommended a fee of $5,000 per space, which would equate to $160,000 of the parking fee requirement. Ms. Kreft said the Park and Recreation Committee did review this and were positive about the ability to create a park on the west side of the property, but did not want to jeopardize any needs for future parking.

Ms. Kreft stated that staff is recommending that the City include in the Developer’s Agreement reference to accepting park and park improvements in lieu of or in addition to the cash. She noted a draft is included in the packet. She said that staff is recommending approval of the conditional use permit.

Terry Hartman, Hartman Communities, said they are excited about the waterfront park concept. He said this is a two part project with some of it public and some of it private.

Ann Mahnke said this was presented at the Park and Recreation Committee meeting last Monday in which there was significant discussion. She said they were excited about the possibility but wanted to reserve judgment for parking issues and let the City Council make that decision.

Mayor Hershberger Thun noted that this area was in the parks master plan to be developed as a public gathering area. Ms. Mahnke said that is correct, a town square area has been identified in this area.

Councilmember Paulsen asked about the impacts of the shared parking. Ms. Kreft said they aren’t designating parking for this proposed use, but would state in the Developer’s Agreement that there is municipal parking. She noted the study area is required to be 500 feet. Councilmember Paulsen asked about the distance between the 30 spaces. Mr. Norton said the parking study indicated there is sufficient parking within 500 feet. Councilmember Paulsen talked about the importance of the fund and questioned where the $5,000 per space came from. Ms. Kreft said they included the cost to build the parking lot to city standards. Ms. Geheren stated she did a detailed cost estimate based on current construction costs and what it would take to build a municipal surface parking lot to city standards.

Councilmember Paulsen asked if a restaurant is a potential user in this redevelopment. Ms. Kreft said no, the parking has only been determined as retail and office.

Councilmember Paulsen asked about the impacts to the neighboring property owners and what happens to the rights and values of other properties. Mr. Norton said that everyone has the same opportunity to decide on the uses for their property and would all be entitled to get a conditional use permit. He said he doesn’t see it as a negative impact on the rights of others and the ordinance will treat everyone the same in the central business district. Councilmember Paulsen clarified that there will be no signage permitted on 32 spaces. Mr. Norton said there are no rights to put names on signage. Mayor Hershberger Thun noted the City has the right to put public parking signs up and have chosen not to do that.

Councilmember Paulsen said he thought they were going to review the shared parking ordinance before they looked at another case. Mr. Norton said that he and Ms. Kreft were going to review the shared parking ordinance but it wasn’t going to hold up this project. Councilmember Paulsen asked about the legal documentation.

Councilmember Paulsen talked about the process and the neighboring businesses.

A motion was made by Councilmember Roden, to Adopt Resolution No. 09-16, A Resolution Approving a Conditional Use Permit for Hartman Brothers LLC to utilize public parking for redevelopment of property located at 1700 Stieger Lake Lane consistent with the amended Article V presented tonight outlined under section 5.3. The motion was seconded.

Councilmember Amundsen commented on the undefined need for future potential parking. He said if there is a problem the burden is upon the City to correct the problem. He said the $160,000 might be better held in reserve for further discussion. He suggested moving forward with the conditional use permit but not commit to the park right now.

Mayor Hershberger Thun stated she supports the motion as it is and hopes it starts right away.

Councilmember O'Connor talked about this being a wonderful asset that will anchor the east side of town.

Councilmember Paulsen said it is not about the project it is about the long term liability and there are two standards.

Councilmember O'Connor asked if Mr. Hartman has agreed to the amended conditional use permit article V. Mr. Hartman said there is still a small amount of tweaking that needs to take place.

Councilmember Amundsen commented on having enough time to review documents before voting.

Councilmember O'Connor asked about the value of the land that is put into the project for the park. Mr. Hartman said the current purchase price reflects an appraised value that could be supported.

Mr. Uram clarified that nothing in this resolution will absolutely require that the City accept the park in lieu of cash. He said the project will require a $160,000 contribution to the City. Mr. Norton noted they can bring back the finished document before it gets executed if that is the direction.

With the majority of the members voting in favor, the motion carried. Vote: 4 Ayes, 1 Nay (Paulsen).

The City Council took a five minute recess at 8:10 p.m.

The City Council reconvened at 8:15 p.m.

Ms. Kreft said that a copy of the orderly annexation area is included in the packet. The City’s interests are sections 1 and 2, which are adjacent to Laketown Township and the future boundary for the City of Victoria. She said the recommendation was to attend a public hearing on Wednesday, February 11^th at the City of Carver on the orderly annexation agreement to show interest in joining the agreement and requesting the City of Victoria be made a third party in this agreement. This would include a portion of section 1 west of County Road 11, sections 2, 3 and 4.

Councilmember Paulsen noted this is 4 sections that are over 3 square miles and they need to make sure staff has all the tools they need to get this done.

Councilmember O’Connor asked what recourse they have. Ms. Kreft said if it moves forward as is it would then go to the Office of Boundary Adjustments. Councilmember O’Connor asked about the challenger outcomes. Mr. Norton said that the hopes would be for it to turn into a negotiation. He noted the negotiating settlements are typically accepted.

A motion was made by Councilmember Roden, to Adopt Resolution No. 09-17, A Resolution stating concerns with the orderly annexation area between the City of Carver and Dahlgren Township. The motion was seconded. With all members voting in favor, the motion carried. Vote: 5 Ayes, 0 Nays.
 

-A- Building Update

Mr. Uram reported the majority of the mechanical equipment has been installed and everything should be completed by February 19^th. He said the kitchen has been remodeled and the dishwasher hood has been installed. He noted the next thing that needs to happen is the cleaning of the area. Mr. Uram said the silver duct work will also be painted to match the ceiling. Mayor Hershberger Thun commended the staff.

Mr. Uram said the meeting is this Saturday from 8:00 a.m. to 12:00 p.m.

Ms. Geheren provided an update on how the economic stimulus could or could not impact the City of Victoria. She said they are looking to use existing formulas within the state process as opposed to an earmark process. There are three different programs that infrastructure money could come through; two from the EPA and the other is Mn/DOT for transportation. She said the only projected listed that would deal with Victoria is Highway 5 from Chanhassen to the bridge with safety and intersection improvements. She noted the big question is how the local agencies see any money.

Ms. Geheren said they invited all the cities in the Minnehaha Watershed District to attend a meeting to come up with common interests and decided to come up with a joint response on what the goal should be for rule changes. She noted a copy of the letter that was sent to the Minnehaha Watershed District is included in the packet. Ms. Geheren said the Watershed District is also developing an example for what new development might look like with different types of soils with the new rules. The next technical advisory meeting will be on February 28^th. Ms. Geheren said they feel this should be accomplished by a partnering between the City and the Watershed District.

Councilmember Roden said there is a concern with not getting the needed help.

Councilmember Amundsen said his concern is where the dialogue is.
 

Mr. Norton provided a follow up on the stimulus package and said it is not clear on how the local stimulus packages should be working. The City Council discussed the money coming through the City of Minneapolis.

Councilmember Roden said the mission of the Business Development Committee will be brought back for further review and said the next meeting is on February 25^th. She said to let her know if there is any specific feedback. Councilmember Amundsen commented on taking the name of the Committee literally.

Councilmember Roden noted they have several vacancies on the committees and said she would like to see a number of people step forward for the vacancies.

Councilmember O’Connor said he attended a session on underage drinking and drug abuse. He said they talked about the social host ordinance and suggested bringing this forward to a future session. Mr. Uram said they could have discussion at a workshop prior to the ordinance. Councilmember Amundsen said they could also look at involving appropriate individuals in that workshop.

Councilmember Amundsen said he went to a meeting in Cologne last week for the Community Leaders forum and discussed the fiber optic wire, which appears to be moving forward. He reported that there was also a workshop as to joint responsibilities. He noted his recommendation was to ask the people who do this everyday to give information. Councilmember Paulsen asked if there was any further definition on how the cities hook up to the fiber optic plan and how the cities benefit. Councilmember Amundsen said it would provide high speed access and they are also proposing some benefits such as back up storage. He stated it gives the community an opportunity to join in. Mr. Uram said it will be connected to the City Hall and where it goes after that will be based on the number of customers.
 

None.
 

None.
 

A motion was made by Councilmember Amundsen, to adjourn the meeting at 9:02 p.m. The motion was seconded. With all members voting in favor, the motion carried. Vote: 5 Ayes, 0 Nays.
 

Respectfully submitted,

Tanya Schmieg
TimeSaver Off Site Secretarial, Inc.