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.

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

Absent: None.

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

Others Present: Sue Orsen, The Victoria Gazette, and others.
 

Mr. Uram added item 10.B. Carver County Application for Land/Easement Acquisitions and Paving of a Portion of the Chaska-Victoria Regional Trail.

A motion was made by Councilmember O'Connor, 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:

Stacy Ludwig and two other neighbors from the Savanna Valley Neighborhood asked the City to replace the Savanna Valley neighborhood park for a commercial park. She stated the current park is dangerous for children and poses a liability. Ms. Ludwig said the playground was recently inspected and it doesn’t meet any current safety regulations. She stated the playground is a high usage area with about 130 children in the neighborhood. She noted that children from other developments also use the Savanna Valley neighborhood park. Ms. Ludwig said they are working with Ann Mahnke and the Park and Recreation Committee and anticipate having a recommendation on for the City Council meeting on June 22^nd. Mr. Uram noted that the Park and Recreation Committee meeting is next week and staff will have a recommendation at the next City Council meeting on June 22^nd.
 

(4) VISITORS PRESENTATION:

Mary Jo Watson, CenterPoint Energy, said the Community Partnership Grant offers an opportunity for CenterPoint Energy to partner with local fire and police departments. She presented the City of Victoria Fire Department a grant in the amount of $2,000 to be used to purchase portable generators for the Fire Department.

Chief Walsh presented Doug Schmieg and Doug Jurek plaques. Both firefighters retired in March of this year. Both firefighters have 50 years of combined service.

Chief Walsh said that Doug Schmieg started with the Fire Department in 1982. He noted that in going through the records starting in 1986 Doug Schmieg had participated in 1,730 calls for service. Chief Walsh presented Doug Schmieg with a plaque and a badge.

Chief Walsh said that Doug Jurek started with the Fire Department in 1986. He noted that in going through the records starting in 1986 Doug Jurek responded to 1,656 calls for service. Chief Walsh presented Dough Jurek with a plaque and a badge.
 

Councilmember Paulsen removed item F.

Mr. Uram removed item G.

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

Councilmember Paulsen stated the plan shows the amendments but doesn’t give any references. Ms. Johnson said she didn’t put the complete plan in the packet because it is several pages. She said she did provide the summary of changes, which doesn’t affect staff.

A motion was made by Councilmember Paulsen, to Approve Agenda Statement 09-118; Accepting the Amended and Restated ICMA-RC Deferred Compensation Plan. The motion was seconded. With all members voting in favor, the motion carried. Vote: 5 Ayes, 0 Nays.

Mr. Uram said that in reviewing the previous assignment documents there was a temporary step increase that was to terminate after her initial period. He is recommending that temporary step increase be continued with this assignment until December 31, 2009.

A motion was made by Councilmember Roden, to Approve Agenda Statement 09-119 and Accept the Personnel Committee’s recommendation for continuing temporary assignment for Ann Mahnke to assist as Public Works as well as her Field House duties and to continue the temporary step increase through 12-31-09. The motion was seconded. With all members voting in favor, the motion carried. Vote: 5 Ayes, 0 Nays.

Mayor Hershberger Thun noted staff is still working with the possible posting of the Public Works Director position.
 

-A- Approve the June 8, 2009 Claims Roster in the amount of $361,046.26.

A motion was made by Councilmember O'Connor, to Approve the Claims Roster in the amount of $361,046.26. The motion was seconded. With all members voting in favor, the motion carried. Vote: 5 Ayes, 0 Nays.
 

Mayor Hershberger Thun noted the total for the various donations is $1,975.

A motion was made by Roden, to Approve Resolution 09-59; Accepting the Donations in the amount of $1,975. The motion was seconded. With all members voting in favor, the motion carried. Vote: 5 Ayes, 0 Nays.
 

Ms. Geheren stated the Storm Water Pollution Prevention Program requires the City to hold a public meeting annually. She explained that as part of the program the city was required to develop a Storm Water Pollution Prevention Program back in 2002 to address the minimum controls and measurement areas listed in the report. She noted the program is about 43 pages and is available for review by contacting Ms. Geheren or the City Clerk and is also currently on the City’s website. Ms. Geheren stated the six minimum measures are:

• Public Education and Outreach

• Public Involvement and Participation

• Illicit Discharge Detection and Elimination

• Construction Site Storm Water Controls

• Post – Construction Storm Water Management for development and redevelopment

• Pollution Prevention/Good Housekeeping for Municipal Operations

Ms. Geheren stated that one of the big projects that were undertaken in 2008 was the Improvement of Kirklachen Park. She said another component to the program is that the Public Works Department is required to complete inspections of the storm water infrastructure annually. There are currently 42 pollution control devices located within the city that are required to be inspected annually. The other two areas of inspection are storm water ponds and outlet structures. She said the City currently has 70 storm water ponds that have been built over the past 20 years. She noted that Public Works Department is working on a maintenance schedule to begin dredging the ponds. Ms. Geheren said that 20% of the ponds are inspected annually. The outlet structures that are 24 inches or larger in diameter are also inspected and the city currently has about 100 structures. She noted that the Public Works Department inspects 20% of those structures annually. Ms. Geheren explained that this information is compiled in a report format and has to be available if an audit would occur.

Ms. Geheren said another component is training of staff in erosion control and good municipal operations. She noted the Building Inspector is also being trained in erosion control.

Ms. Geheren said that next year they will continue to look at other opportunities for public education.

Ms. Geheren stated there are funds available in the storm water utility fund for maintenance.

Ms. Geheren explained the public input will be received and considered in making adjustments to future implementation plans for the storm water pollution prevention program. She noted the minutes of the annual public meeting will be incorporated into the City’s annual report.

Councilmember O'Connor asked about the interaction with the Minnehaha Creek Watershed District and the Minnesota Pollution Control Agency. Ms. Geheren said the City is regulated by both and need to be responsive to both. She noted the MPCA is the regulating authority of the EPA.

Councilmember Paulsen asked what the contingent liability is on 70 ponds. Ms. Geheren said that 44 of the ponds are less than 10 years old, but dredging is to be expected. She noted it can cost anywhere from $5,000 to $15,000 per pond and comes down to how big the ponds are and how much sediment has built up. Councilmember O'Connor asked if the liability is to correct the problem. Ms. Geheren explained the ponds have a life expectancy; they are designed to collect sediment.

Councilmember O'Connor questioned the ability to navigate through the various jurisdictions. Ms. Geheren said the Public Works Department can identify a problem or when maintenance will be needed. Then, a water resources engineer or hydrologist will be consulted to help with plan preparation and the permitting process.

Councilmember Paulsen asked how big of a problem the sediment is or can become. Ms. Geheren said the MPCA has just revised the dredging permit. She noted she has not gone through the process yet but from what she is hearing, the new process is something they can reasonably navigate through. Ms. Geheren said the primarily issue is dealing with phosphorus. Councilmember Roden asked where is the phosphorus is coming from. Ms. Geheren said the phosphorus is coming off the existing landscape.

Councilmember Roden compared the storm water plans to the street maintenance. Ms. Geheren said the City has an inventory of all the ponds and the when they were constructed.

Councilmember Roden asked about the vegetation. Ms. Geheren said that all the new ponds have a buffer around them. She noted the ponds not on City owned outlots are more difficult to access and maintain.

Councilmember Amundsen stated the days of a plat development with a 16-foot backyard on the footprint are over. He asked for inventory of the ponds without buffers. He said they need to partner with the people to provide the right information.

Ms. Geheren said they have been through five years of inspections so every pond has now been inspected.

Mayor Hershberger Thun opened the public hearing at 7:08 p.m.

Mayor Hershberger Thun closed the public hearing at 7:08 p.m.

Mayor Hershberger Thun clarified that there are two items on the Downtown Phase II Street Improvements; one is a public hearing on the possibility of changing the assessment policy and the other accepts the bids.

Ms. Geheren said the City Council considered the feasibility report, plans and specifications on May 11^th. She explained the project includes the reconstruction of Quamoclit Street from Highway 5 to Stieger Lake Lane, extension of Tower Boulevard from the existing alley to Quamoclit Street, a small portion of reconstruction on Stieger Lake Lane to the Lakeside project and also looks at the construction of a turn lane on Highway 5. The project includes street and storm sewer improvements. Ms. Geheren explained the storm sewer system is a continuation of the regional storm sewer system that was constructed with the Phase I Improvements. In addition the sanitary sewer system will be reconstructed and repairs to gate valves will be made to the water system. She noted sewer and water connections will also be put in to developable parcels.

Ms. Geheren stated the attached notice was published in the newspaper and sent to impacted property owners.

Ms. Geheren said the total project cost is $660,177. The assessment is on a front foot basis so the amount of assessment varies by property owners.

Ms. Geheren stated that staff’s recommendation in the feasibility report was to assess 75% of the project cost, which is consistent with Phase I Improvements.

Ms. Geheren showed the preliminary assessment role and said the lowest assessment amount with 75% being assessable is about $22,000 and the highest is about $95,000.

Ms. Geheren said that if the city decides to proceed with the project a final assessment hearing would be held after the improvements are complete and if the final project costs come in under what was presented, the assessments could be reduced. The assessment hearing would be held in fall of 2009 or spring of 2010. Ms. Geheren noted they will not be waiting a year to put the second layer of asphalt down due to the truck traffic. She said the property owners have the ability to pay the assessment off in full prior to it being certified to the county or the assessment would be placed on property for 15 years with an interest rate of 2% above the interest rate for the bonds. The hardship deferment process is also available and forms are available from the City Clerk.

Mayor Hershberger Thun clarified that no action should be taken if the assessment policy remains at 75%.

Councilmember Roden asked for a summary of the discussions with the business owners. Ms. Geheren said they have met with everyone at least once. She noted that most of the questions are construction related. Ms. Geheren said once they have a contractor and a schedule they will have a downtown open house meeting to inform the businesses of the construction phasing. Ms. Geheren said they have had multiple meetings with the bank. She said they have had multiple meetings with Rich Gannon. Ms. Geheren said staff met with the Braunworth’s who have concerns with the assessment amount. She stated they have met with Hartman’s and have had ongoing discussions with the grocery store. She said they met with the Victoria Bar and Grill.

Councilmember Roden asked about the timing and Volksfest. Ms. Geheren said once they have a construction schedule it will be easier to decide what the impact may be.

Councilmember Roden asked if the Finance Committee reviewed the different assessment amounts and made a recommendation. Mr. Uram said the Finance Committee did not have an opportunity to review it because they did not have a meeting in May. Councilmember Paulsen said the Finance Committee did not approve the costs paid by the City for Fresh Seasons and other things the Finance Committee should be reviewing.

Councilmember Amundsen asked what the difference is with the total project cost and the estimate. Ms. Geheren said they are proposing to hold a decent size of contingency money to work with issues that come up with property owners, and there may be change orders. The soft costs would be engineering costs to design the project, construction administration, onsite inspection and geotechnical engineering. She said there will be costs for legal, fiscal bonding and administration.

Councilmember Amundsen stated the feasibility study should have been done in accordance with the policy and recommendation. He said the feasibility study would have been better served to have been done at 100% with the 75% being presented as an option. Councilmember Roden said she asked to look at this alternative and if it was going to be changed the residents would need to be notified.

Mayor Hershberger Thun opened the public hearing at 7:27 p.m.

Mayor Hershberger Thun closed the public hearing at 7:27 p.m.

The City Council agreed to go forward with the 75% assessment rate.
 

Ms. Geheren said this is the next step is to move the project forward. She noted that because this project was not initiated by petition under the MN State Statute 429, a 4/5^th’s vote is needed to order the improvement. She stated that six bids were received on Thursday. Ms. Geheren explained the alternate bid, which would allow the contractor to use high-density polyethylene pipe instead of reinforced concrete pipe for storm sewer. The low bidder was Chard Tiling & Excavating, Inc. at $360,858.45.

She said the engineer’s estimate was $469,986.75 and a large part of the difference is related to the price to haul the dirt offsite. She said they also have two other projects in the area so they do have equipment in the area. Ms. Geheren stated that at the time of the assessment hearing the assessments would be reduced accordingly.

Mayor Hershberger Thun clarified that Chard Tiling & Excavating, Inc. would be using the concrete piping. Ms. Geheren said yes and she is comfortable with that.

Councilmember Paulsen commented on the differences in the bids and the mention of being able to use the fill. He questioned the City’s need for fill on trails. Ms. Geheren said the contactor would have some say being it wasn’t in the contract.

A motion was made by Roden, to Approve Resolution No. 09-61, accepting bids, ordering the improvement, and awarding contract for the Downtown Phase II Street Improvements to Chard Tilling & Excavating, Inc., for their base bid in the amount of $360,858.45 with no alternate bid. The motion was seconded.

Councilmember Amundsen commented on Xcel Energy not identifying any need for major improvements to the facilities in the project area and said they may want to reevaluate.

Councilmember Amundsen commented on the bids and asked how to make sure that the job gets done. Ms. Geheren said with these spreads they will maintain a higher contingency for change orders. She stated in this economy it has been a lot more challenging to do engineers estimates. Ms. Geheren said they do have contracts in place that she is comfortable with. Councilmember O'Connor asked what the estimate is for the value of the fill. Ms. Geheren responded $30,000. She noted both sanitary and storm sewer pipe also came in a lot lower.

Councilmember Paulsen asked if this resolution gives the flexibility for staff to fix this or would they just go with the lowest bid. Ms. Geheren said the process would be managed through the contract and she is comfortable she has the tools she needs.

Councilmember Paulsen stated he is not comfortable spending any more money downtown. He said he has asked for information on costs spent for downtown and wants to receive a full understanding as to what was spent and where they are going.

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

Mayor Hershberger Thun asked for the information Councilmember Paulsen is requesting at the next meeting. Mr. Uram said the appropriate setting to present that information was discussed and will be at the next Finance Committee meeting on June 23^rd.

Ms. Johnson explained that there was a high staff turnover with regards to the utility billing function. As a solution staff starting seeking outsourcing companies and came up with Opus 21 that would be able to do the tactical activities. She noted that staff time will still be needed and is estimated at an hour per day.

Ms. Johnson stated that Opus 21 is a service bureau that focuses on the utility industry. The Master Service Agreement provided in the packet is a five-year term with a fixed net price. Based on the projections the contract cost will run approximately $25,000 per year and over and above that is the added cost for the postage and in-house staff time. All the direct costs total approximately $37,000 which compares to keep everything in-house at $42,000.

Ms. Johnson explained that the staff member’s time that is responsible for most of the billing processes will be reallocated to administrative duties for Public Works, Fire Department and Administration.

Ms. Johnson stated the estimated time for Opus 21 to complete the conversion and to start the billing and process of payments would be the third quarter.

Ms. Johnson said the Finance Committee reviewed the analysis and at the last meeting a recommendation was made to move forward with the outsourcing and continue billing on a quarterly basis.

Ms. Johnson introduced the Principals of Opus 21, Mike and Lynn Shuba. Mr. Shuba expressed their appreciation for the recommendation to move forward. He said they are a metro based company operated out of Woodbury.

Councilmember Paulsen asked Ms. Johnson if she is comfortable that they will have control of the cash. Ms. Johnson responded yes and said they will have a lock box. Councilmember Paulsen asked how long it is before the cash gets to the City. Ms. Johnson said it is 48 hours. Mr. Shuba said that is custom and one of the benefits they are able to offer the City is a relationship with the same institution as the City of Savage and they have an electronic transfer which allows the City of Savage to have their funds that afternoon.

Councilmember Paulsen asked what percent of the bills come in on time. Mr. Shuba said that it has decreased to about 92% to 93% are paying on time. Ms. Johnson stated this will also increase the internal controls.

Councilmember Roden asked for a description of the worst conversion from a city and what was learned by it. Mr. Shuba said yes they have had a couple of bad conversions. He said it comes down to bad data coming over in the extract files. He stated the last 7 or 8 conversions over the past 12-14 months have gone extremely well. Ms. Johnson said they have also done away with any inconstancies. Councilmember Roden commented on the customer service aspect and the credibility of the City Council being a reflection of how well the data transfer goes.

Councilmember Roden stated that one of the complaints she gets has to do with quarterly billing and she was hoping monthly billing would be an option. She asked if residents will have real time data. Ms. Johnson said no, the meters will only be read on a quarterly basis. Councilmember Roden said that is a disappointment and is an issue for homeowners. Mr. Uram said they did talk about providing historical information where the homeowner can see what was spent last year. Ms. Johnson noted last years data would not be converted into the system. She said it is $4.50 per account to get the information converted.

Councilmember Roden asked what reassurance the City has with the customer service aspect so more staff time isn’t being spent. Mr. Shuba said that one of the first tactics is to understand what the business rules are. He explained that the phones will be answered how the city would like and there will be six people that work on this account. Councilmember Roden asked what the call answering statistics are. Mr. Shuba stated the analysis from last months call rates was 97.2% and if a message is left the call is returned within one business hour. He stated they put a very high emphasis on customer service.

Councilmember O'Connor said he is a strong supporter of this concept. He stated there is a one time conversion cost of about $10,000. Ms. Johnson said that cost is the $4.50 per account. Councilmember Roden asked if they will get charged $4.50 for every new account. Ms. Johnson said no then it is the unit charges.

Councilmember Amundsen stated it seems like the best deal is going from the quarterly billing now to a monthly billing. He questioned the percentage of pay with monthly billing and said a couple percent would pay for it to move to monthly. Mr. Shuba said the percentage does increase by a couple points with monthly billing because cities tend to have a larger participation in auto pay.

Councilmember O'Connor clarified that there isn’t enough staff today to do the monthly billing in-house. Ms. Johnson said correct. Councilmember O'Connor asked what that would take. Ms. Johnson said it would be 100% of the current staff plus some assistance from the Finance department. She said the issue would be the cash management.

Mayor Hershberger Thun noted the cost for monthly billing is estimated at $64,000.

Ms. Johnson recommended keeping it quarterly and then look at monthly in 2010.

Councilmember Amundsen asked if there was an additional cost from going from quarterly to monthly. Mr. Shuba said no.

Mayor Hershberger Thun asked if the other cities listed in the agenda statement are mostly monthly or quarterly. Mr. Shuba said that currently the City of Ramsey is the only quarterly customer.

Mayor Hershberger Thun stated she is not in favor of quarterly billing. She said they are asking customers to change to outsourcing. Mr. Shuba noted the customer care is generally better on monthly billing. Mayor Hershberger Thun clarified the cost difference is $15,000. Councilmember O'Connor said the difference from quarterly in-house to outsourcing monthly billing is $22,000.

A motion was made by Amundsen, to Approve Resolution No. 09-62; Approving the Opus 21 Management Solutions Master Agreement and go to the quarterly billing. The motion was seconded.

Councilmember Roden said she will vote for this with the understanding that staff will come back in 2010 to look at monthly billing.

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

-A- City of Chanhassen Application for Pedestrian Underpass at TH 5 and Minnewashta Parkway

Ms. Kreft said this is a request from the City of Chanhassen to support federal funding through the Transportation Enhancement Funds for an underpass at Minnewashta Parkway and Highway 5. The intersection is located within the City of Victoria and would connect current and future residents of Victoria along with the City of Chanhassen to the Arboretum on the south side of Highway 5. Ms. Kreft stated the City has met with Pastor Monday to discuss a potential easement that would be needed from the church on the southwest corner of the property and the church has been very responsive to that. She explained the funding would require a 20% match from the City of Chanhassen and would likely occur in 2011 when resurfacing on Highway 5 is planned.

Councilmember Paulsen asked about the trail system matching up. Ms. Kreft said the City of Chanhassen is working with the Arboretum to extend a trail on the north side of Highway 5.

Councilmember O'Connor asked what the demand is for such an underpass and noted that this project is a million dollars. Ms. Kreft said the understanding from the City of Chanhassen is they are looking for a grade separated crossing to access the Arboretum.

Mayor Hershberger Thun asked if this is coming from the stimulus trail money. Ms. Kreft said it is a five year grant fund cycle.

Councilmember O'Connor commented on the economy and said it seems to be a waste of money. He said he would be in favor of voting not to support this.

Mayor Hershberger Thun clarified that this intersection has been identified in the corridor as one of the intersections that needs to be improved. She said that in the long run this will have to be done. Councilmember Roden noted they will also need to work with the Arboretum on other items and doesn’t want to send the wrong signal. She commented on making amenities more accessible to people.

The City Council took a five minute recess at 8:23 p.m.

The City Council reconvened at 8:29 p.m.

Councilmember Paulsen suggested supporting this and also asking for help to get a trail on the south side of Highway 5.

A motion was made by Paulsen, to Approve Resolution 09-63; A Resolution in Support of the City of Chanhassen’s Application for Transportation Enhancement Funds for Trunk Highway 5 Bicycle/Pedestrian Underpass and Trails with the stipulation that the City of Chanhassen will support any effort by the City of Victoria to develop the trail system on the south side of Highway 5. The motion was seconded. With all members voting in favor, the motion carried. Vote: 5 Ayes, 0 Nays.

Ms. Kreft said this request comes from Carver County. She said Carver County will be putting together an application for transportation funds and they are asking for two pieces of the Chaska – Victoria Regional Trail. She noted this is the overall regional trail, not the interim trail. She showed a map and said the City currently has an approved purchase agreement for one of the parcels at a cost of $4,000 and would need three additional acquisitions of land and or easement for the trail. Ms. Kreft stated a benefit would be the paving of the existing trail from Kirklachen Park to downtown Victoria. She noted the Chaska portion would be acquisitions of two parcels and paving of approximately a third of an acre. Ms. Kreft stated the overall costs are estimated to be $480,000 and Carver County is required to provide a 20% match. If the funds are received the project would occur in 2013 or 2014.

Mayor Hershberger Thun asked if this fits in the overall plan with what Chaska and Victoria have been talking about for trails. Ms. Kreft said it does more so in the Chaska piece, but in Victoria it would continue with the long term trail plans.

Councilmember Paulsen asked what would be asked for in terms of cash. Ms. Kreft said there is a cash match, and it would be approximately $16,000 from the City of Victoria. She explained that the $480,000 is split and Victoria’s portion for acquisition and improvements is $180,000 and Chaska’s portion is $380,000 so 10% of Victoria’s portion is $18,000.

Ms. Kreft noted the funds are coming from the transportation trail funds.

A motion was made by Paulsen, to Approve Resolution 09-64; A Resolution in Support Carver County’s Application for Transportation Enhancement Funds for Land/Easement Acquisitions and Paving a Portion of the Chaska-Victoria Regional Trail. The motion was seconded.

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

Mr. Uram said he has asked Ms. Geheren to provide a report on the upcoming Metropolitan Council Environmental Services project expected to begin in the next couple of months. He noted a workshop will be held on June 22^nd with the Met Council. Mr. Uram said there are residents who would like to address the City Council on the challenges with Met Council.

Ms. Geheren explained that back in 2005 the Met Council completed a facility plan that identified areas that were experiencing problems due to lack of capacity and structural deterioration. She said that L22 was at capacity so the City worked with the Met Council and created the Growth Management Guidelines. Ms. Geheren said the first implementation step for the MCES was the development of specific plans and completion of Phase 1 covering the replacement of the sewer infrastructure at the box culvert under Smithtown Road. In 2007 the City Council approved Resolution 07-106 authorizing the execution of construction cooperation agreement between the City and MCES for these two phases of the project and also to begin looking at the next phase of the project. She said that Phase II of the project consists of construction of three large diameter tunnels. The next phase of improvements is scheduled to begin later this summer. After the tunnel projects are complete there is a third phase that would involve replacement of the interceptor infrastructure. She noted the third phase is still in early development stages. Ms. Geheren stated the Met Council will essentially be looking for an amendment to the Construction Cooperative Agreement since they have identified that they will not meet the deadline for park improvements listed in the agreement. She said as part of that agreement the City should look at the agreement to put some additional controls in place.

Mayor Hershberger Thun asked how many Residential Equivalent (REC’S) Units are left. Ms. Geheren said there are about 300 remaining REC’S for new plats.

Mayor Hershberger Thun asked about the list for the Met Council. Mr. Uram said that on the list are: a communications plan, safety program, dispute resolution process, one point contact, parking staging traffic control plan, protection of property and schedule.

Councilmember Paulsen asked what level the contacts are. Mr. Uram said they have described it as the "car" council authorized representative. Ms. Geheren said the representative is responsible for administration of the construction contract.

Councilmember O'Connor asked if a communication and emergency plan exist. Mr. Uram said they have a general overview of what the plans are. He said once there is a contractor there will be a detailed emergency plan.

Councilmember Roden stated they need to know that there is someone accountable who have the authority to make the call. Mr. Norton said the City Council will need to decide how much input they want in the process. Councilmember Roden asked if the people coming on the 22^nd are decision makers. She said if they can’t answer the questions it would be a waste of the City Council’s time. Mr. Uram explained the intent of the workshop is to discuss the tunnel project. He noted the Met Council will be making a change in how the process goes. He noted he is not sure who is coming in a couple weeks, but the understanding is it will be someone responsible for these types of projects. Councilmember Roden said there needs to be service level agreements.

Councilmember Roden recommended listening to the Nelson’s story.

Mayor Hershberger Thun clarified that this story is told from the individual, in their opinion, who has been severely impacted. She stated by listening to them they are not making any judgment on the story.

Pete and Ethel Nelson, 800 Smithtown Terrace, said over the past couple of years time has stopped for them. Mr. Nelson said unless you work with the Met Council you can’t get the answers you need unless you know the questions to ask. He stated his purpose in coming here is because this project is a long ways from being done and what happened to them is things went wrong. Mr. Nelson said he doesn’t want residents to learn the hard way of what could go wrong and if actions could be taken ahead of time it would go a long way. He said this is a group effort that needs common perspective as to how this project should go. Mr. Nelson stated that in the 42 years they have been married they have never been through such trauma. He expressed their gratitude regarding the two crane accidents and fires to the Victoria Fire Department. He said that they found out from Ms. Geheren about the accident, not the Met Council and said they appreciate the support from the City to make sure the residents get information.

Mr. Nelson broke the project down into four pieces. He stated there are now problems with their house that are going to have to be corrected. He noted the sewer construction project is done but not without problems. He said a major fan failed and chemicals were not sufficient to keep the odor down. Mr. Nelson stated the Met Council’s effort to stop the chemicals was to put in rubber mats with bricks on top.

Mr. Nelson explained the project started in October of 2007 and was supposed to be completed by May 31^st of 2008. It went roughly five months late. He noted that in the end it took longer to do the sewer project than it did to rebuild the 35W Bridge and questioned why that is. He said some unexpected things had happened and one was to make sure the soil was compacted which they didn’t test the land in between the structures. Next to their house the soil is completely not compactable and has the physical appearance of wet cement and in the end they couldn’t solve the problem. Mr. Nelson said that when the pilings were put down there were a number of vibrations which caused damage to their house. He encouraged the City Council to come to their house to see the damage. He stated a 75 foot maple tree moved an inch and the land moved away from the house from the vibrations, which also pulled the gas meter away from the house. He said there were also multiple gas line cuts.

Mr. Nelson stated that in the end there was a "culture of carelessness". He talked about the contractor coming in with a low bid and said the people weren’t well trained. Mr. Nelson stated there were no apologies with the crane accidents, fires or other issues. He said that when he wanted to talk to OSHA he was ordered by the general contract foreman to get off the construction site, even though he was on the Nelson’s property. Mr. Nelson said the Met Council will never admit any guilt.

Mr. Nelson said this project should have never been done on such a narrow site. He reiterated the problems with the soil not being compacted. He said there were problems with the contractor and the contractor’s insurance company was AIG. He said AIG had no response or no admission of any guilt. Mr. Nelson stated that after the crane accident AIG was so uncooperative they decided to hire an attorney and 13 months later there has been no resolution of any kind. His out of pocket expenses totaled more than $25,000 at this time in order to seek compensation for the damage that had been caused. He noted that relationship has been terminated and they have another relationship now and he believes they will come to some resolution soon.

Mr. Nelson talked about the hostility. He said the contractor wanted to bypass the Met Council with regards to the right to put in retaining walls and the Nelson’s said they need to talk to the Met Council. The response from the contractor was up until now they have been very nice to them. Mr. Nelson stated there was no concern about trespassing and the attitude was once they get the easement they can do anything they want. Mr. Nelson said many trees were cut down and they lost all their privacy. He said they never knew what to expect. Mr. Nelson said this looks like a project to nowhere and now the need wasn’t so urgent. He stated they appeared before a Judge in Carver County and the opening words were that he knew what happened and there will be no delays. When the crane accident occurred there was an OSHA report that doesn’t say what really happened. He said it seemed like they weren’t answerable to anyone. Mr. Nelson stated that once they got an attorney no one would talk to them and a lot of times they wanted answers to questions that the city should have been asking, but in the end cost them. Mr. Nelson said it gets to be very frustrating.

Mr. Nelson commented on working through the Carver County representative who wasn’t appointed until March of 2008 and this project started in 2007. He called about not having a representative appointed and was told "well isn’t that too bad". He then went to Senator Ortman and arranged to have lunch. She didn’t show and when he called he was told she had enough details and doesn’t need to meet with them.

Mr. Nelson encouraged the City Council to ask more questions and inspect.

Mr. Nelson said that when the project started there was no single point of contact.

Mr. Nelson talked about sending in a photo of the sediment to the watershed district.

Mr. Nelson encouraged the City Council to work with Carver County and talk with residents. He said they would also like assistance with the Met Council in treating homeowners fairly and a clear description of the legal process should be provided. Mr. Nelson said there needs to be homeowners’ bill of rights.

Mr. Nelson said there is a crack in the driveway that is two inches wide and the pavers in the front of the house have sunk down. He said they believe there is a sink hole.

Mr. Nelson talked about his unhappiness with the Met Council and said he surprised them by showing up. He said they were talking about how the Nelson’s felt about the crane accident and someone who he had never met stood up and said they are okay with it, there wasn’t any damage done. Mr. Nelson stated he said nothing that was heard is true. He said there was damage, they are not happy and nothing has been done about it.

Mr. Nelson said not to be afraid to get the watershed district involved. He also said not to be fooled by construction documents.

Mr. Nelson stated the damage occurred but none of the people who were in the position of controlling anything never saw anything or cared.

Mr. Nelson advised anyone who is involved with this to get a good lawyer early.

Mr. Nelson talked about getting an unannounced visit at the door from someone who is going to take video of the entire house.

Mr. Nelson said the Met Council looked at the vibration data but never came to the house to see the damage.

Mr. Nelson reiterated that old equipment was used and people were improperly trained.

Mr. Nelson showed some pictures of the damage.

Mr. Nelson stated he appreciates the long support given by the City and he is hoping these kinds of issues will be brought to the meeting with the Met Council.

Mayor Hershberger Thun clarified that the City Council will have all the materials in advance of the workshop on June 22^nd.

Mr. Uram stated that annually the City is required to provide information on the Lake Minnetonka Conservation District. He noted this was established by legislation back in 1967. Mr. Uram explained the Victoria assessment is based on a formula established by statute. He said for 2010 the assessment is approximately $19,600 as compared to $19,900 in 2009. He stated the dollar amount is calculated based on tax capacity of the 17 communities. Mr. Uram noted the budget this year is flat.

Councilmember Paulsen reported that the building permits are up 17% on revenues from a year ago and dwelling units are up 69%.
 

None.
 

None.
 

A motion was made by Councilmember Paulsen, to adjourn the meeting at 9:43 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.