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, Kim Roden and Jim Paulsen.

Absent: None.

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

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

Mr. Uram added Metropolitan Council Environmental Services and the League of Minnesota of Cities conference to the reports of the City Administrator.

A motion was made by Councilmember Roden, to adopt the Agenda. 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:

Mayor Hershberger Thun presented a plaque to Mr. Hoffman which read: The City of Victoria recognizes John Hoffman for 16 years of service and dedication 1994 – 2010.

Jeff Nordeen, Secretary and Scott Lumby, President, Victoria Fire Relief Association presented the fire relief audit. Mr. Nordeen said there were two findings. The first was on page two titled preparation of financial statements. He stated that Abdo, Eick & Meyer did the audit and also prepared the schedules. He noted there could be a potential conflict because they do the audit and then take the numbers off of the audit to prepare the schedule. Mr. Nordeen said in talking to other fire departments most of them do the same process. He said they will be looking at doing the schedules internally or have a third party do the schedules.

Mr. Nordeen explained the second finding was a limit of segregation of duties. He noted this was also a finding in last year's audit and since then they created a unique post office box for all mail to be sent and picked up by Scott Lumby. He said all the statements must be signed off or initialed by Scott Lumby that he has read them prior to that information going to the treasurer. He stated that all checks greater than $1,000 must be signed by two officers and the president will start documenting a review process.

Mr. Nordeen commented on the funded liability and said that last year the funded rate was 69% and this year it came in at 79%.

Mr. Nordeen stated the fire department did lose one member and gained five new members.

Mr. Nordeen said the net assets increased to almost $62,000 and the association paid out $102,000 in pension benefits. He stated the association received a total of $74,000 in contributions from both city and state. He noted the city contribution was voluntary.

Mr. Nordeen said the one item that is a work in progress is the chart that shows valuation.

Councilmember Roden asked if there is an audit every year. Mr. Nordeen responded yes and said it is mandatory for any pension plan that is over $200,000 in assets.

Councilmember Paulsen asked how many managers there are and who controls the managers. Mr. Nordeen said they used Wachovia Management which then merged with Wells Fargo. He said their advisor is the main point contact but 60% of the assets are in equities right now and managed by Moran Asset Management, which is a boutique firm that works with large firms. Mr. Nordeen said they have been with Wachovia for about four or five years.

Councilmember Amundsen asked how difficult it is going to be to implement the recommendations to finding number two. Mr. Nordeen said that terms of the investment policy are evaluated on a yearly basis so that will be easy to do. He said the check sequence being reported in minutes is easy for them to do. He stated the board does review quarterly investment activity and those are the statements that Mr. Lumby gets in the post office box. He noted the investment advisor comes in twice a year. He said some of these may be more of a communication error.
 

A motion was made by Councilmember Paulsen, to Approve 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 O'Connor, to Approve the June 28, 2010 Claims Roster in the amount of $490,757.67. The motion was seconded. With all members voting in favor, the motion carried. Vote: 5 Ayes, 0 Nays.

-A- Accept Donations

A motion was made by Councilmember Paulsen, to Approve Resolution No. 10-66, Accepting the Donations. The motion was seconded. With all members voting in favor, the motion carried.
 

None.

Ms. Kreft said the agenda statement provides the background for the wetland protection and the shoreline and streambank stabilization rules. She said a public hearing is set for July 8^th and both she and Ms. Geheren plan to attend. She said the tables included meetings relative to these rules that have happened to date. Ms. Kreft stated the shoreline and streambank stabilization rule had little discussion before it was released for public comment. The wetland rule did have additional comments. She said the draft rules have been re-released for a second round of comments and the public hearing.

Ms. Kreft stated there are two major areas staff has concerns with. The first under Rule F is that the district continues to include language relative to the removal of vegetation within the shoreline stabilization area. She said the rules are duplicative with the DNR shoreline rules which the city is required to adopt. Ms. Kreft said staff will make a comment to that effect at the public hearing.

Ms. Kreft referred to the wetland protection and said staff is recommending that the buffer for preserved wetlands be reduced from 75 feet to 50 feet. She said TKDA did an analysis showing the impact to the city.

Ms. Kreft said that staff will be commenting on the two areas of concern at the July 8^th public hearing.

Mr. Uram commented on the process and said there were numerous meetings.

Councilmember O'Connor said the two issues were discussed when there was snow on the ground and no progress has been made. Ms. Kreft said the board has reviewed all the comments submitted. Councilmember O'Connor questioned going to the public hearing. Ms. Kreft said they feel strongly about the two concerns and they do have impacts to property owners. She noted the District has made changes to the rules.

Councilmember Roden said to be prepared to respond to the article about the difficulty the DNR has had enforcing the rules it has. She commented on experience the Schutz Lake Association has had with the DNR with regard to permitting.

Councilmember Paulsen said little has changed. He talked about the science side and asked if there have been any metrics. Ms. Kreft said there was a review of studies with the wetland buffer but the results were mixed. Councilmember Paulsen questioned why there is so much confusion about the science.

Mayor Hershberger Thun clarified there have been a number of changes made. Ms. Kreft referred to staff's comment letter and said the items highlighted are the only ones they have not commented on or addressed. Ms. Geheren said a lot of changes have been incorporated as a result of the feedback. She stated it is important to continue to provide consistent comments.

Councilmember Paulsen asked about correspondence from the county. Mr. Norton said Carver County indicated they would not be taking any action with respect to the Watershed District on the issues raised.

Councilmember Paulsen asked who will be drafting these ordinances. Mr. Norton said he thinks the Watershed District staff and attorney.

Ms. Geheren said the bulk of the project is the Auburn Neighborhood. She noted that as part of these projects different alternatives are reviewed when taking bids. Ms. Geheren stated bids were opened on June 21^st for the project and nine bids were received. The low bidder on the project was Friedges Contracting, LLC in the amount of $774,732.30. She said they are familiar with the subcontractors and checked references which were all favorable. Ms. Geheren explained athat a majority of the savings was in the sanitary sewer portion of the project. She said this is a complicated project because there are a lot of improvements going on in a small area. Ms. Geheren reviewed the additional costs. She noted the lift station pump and panels will be purchased separately. She said the extension of three phase power Xcel Energy is $25,000. She explained the other projects costs are: contingencies, easement acquisition, engineering report, design and construction services, geotechnical engineering, resident full-time construction observation and legal fiscal and administration. Ms. Geheren noted that about $98,000 in engineering costs has been spent to date. The total project cost is just under $1.2 million. She stated that $500,000 is for the sanitary sewer improvements. Ms. Geheren said the city share of the cost is about $787,000. She noted the assessments are a little lower than what was in the feasibility study.

Councilmember O'Connor commented on being asked to approve over a million dollar project and asked why the numbers weren't in the packet. Ms. Geheren said they didn't get the bids in time to complete the bid analysis prior to the packets going out.

Councilmember Paulsen commented on spending $1.2 million dollars on 19 residents. He talked about the engineering and asked when they are going to get competitive numbers. He said he is getting to the point where he is starting to push back on this project. He questioned the cost versus the benefit.

Councilmember Roden said it is a function of what needs to be done to bring the neighborhood to the 30 year standard.

Councilmember Amundsen said they need to look at the services since they are not reflecting the changing economy. He commented on a small neighborhood and said they may not be able to expect similar infrastructure as a larger neighborhood. He stated the projects don't get bid on the number of people.

Mr. Uram said this has been one of the more difficult neighborhoods to design. Ms. Geheren said they did several different alignments. She noted they were able to use the team that has a significantly lower cost per hour.

Ms. Geheren talked about the replacement of the existing sewer system. She said it is not a traditional sewer system.

Ms. Geheren said there are trees that will have to be removed as part of the project.

Ms. Geheren explained the current lift station currently only uses single phase power. She said the recommendation is to have three phase power. She stated the concern that has been raised related to the three phase power is a 6'x6'x6' utility box. Ms. Geheren said they did talk to Xcel about screening and they would be able to screen the box on three sides. Ms. Mahnke talked about the value of three phase power. She said three phase power provides a constant, smooth transition of electricity to the pumps. She said there is enough surge to prevent the pumps from clogging. Ms. Mahnke said there are a lot of calls out to the lift stations because they are plugged up or shut down. She stated there is an advantage from the operations and maintenance side to have the consistent power supply from the three phase. She explained that they can utilize single phase but it would require more components to be put in to the panels. She said the cost is about $5,000 per component and they usually need to be replaced every five years. She noted there are two components in the system which would be about $50,000 over the life of about 50 years. She said in looking at the man hours of about 25 times per year over the life of 50 years that would be close to $400,000.

Councilmember O'Connor asked how close the utility box would be to a residents home. Ms. Mahnke said about 50 to 60 feet.

Councilmember Roden asked which side would not be screened on the utility box. Ms. Geheren said the road side would not be screened due to access.

Councilmember Roden asked how much noise the three phase power box makes. Ms. Mahnke said the noise would be minimal.

Councilmember Amundsen asked why the power can't be located with the lift station. Ms. Geheren said the existing lift station has to stay in place until the new one is built.

Councilmember Amundsen asked about fencing. Ms. Geheren said they did discuss fencing and it is still on the table.

Mayor Hershberger Thun asked about the impact to people seeing around it when driving. Ms. Geheren said they want to be careful with how close they get it to a corner so it doesn't limit sight distance.

Councilmember Roden asked if there is any other way to get three phase power. She commented on the trend in utilities putting everything underground. She asked for other options. She said if one is hit with a dump truck or snow plow it knocks out service. Ms. Mahnke said she will look at other alternatives.

Ms. Geheren explained alternate one is to extend Thornberry Curve to Virginia Drive. She said the goal was to complete the missing connection at a reasonable cost. She commented on the easement needed from the property owner who is willing to give the easement to the city at no cost. Ms. Geheren said a resident meeting was held last Monday and generally there was support for the connection. She noted that a letter was received from one property owner that was opposed. Ms. Geheren stated there are 13 different permits for these projects overall. She said the Thornberry Curve extension does require a permit from the Minnehaha Creek Watershed District. Ms. Geheren showed the drainage area map. She explained the issue for the property owner and showed the private easement. She said the property owner would like to see the private easement vacated. Ms. Geheren stated this does not require a public hearing. She said the estimated cost is $109,000.

Mayor Hershberger Thun asked if there was any search done as to why the city didn't do this years ago. Ms. Geheren said she pulled documents related to this issues and there seemed to be a lot of neighborhood debate.

Councilmember Roden referred to the letter and asked Ms. Geheren to address the other issues. Ms. Geheren commented on the traffic issues and said that having a loop will minimize the traffic because cars will have a way to get through. She commented on item 2 in the letter and said the existing property down the hill is very steep and they aren't working in that area. Ms. Geheren said there will be .19 acres of clearing and grubbing but they will try to minimize the impact of tree removal. She noted they will be looking at where to reinstall the mailboxes.

Tuck Thomas, showed his property location and said he just saw the remarks on this project. He referred to the letter and said it has been the same argument for twenty years. He stated he has been a property owner in Victoria since 1965 and has lived in Victoria since 1979. Mr. Thomas stated he was willing to donate a portion of his land so the city could get this project done. He noted his dad was the developer of this property and they did give the city land to complete the road and money to complete the project. He said he doesn't know what the city did with the $55,000. Mr. Thomas addressed the issues raised in the letter from the Peterson's. He said there will be no more traffic on the road then there currently is. He said the small driveway is a hazard and you cannot see around the curb. He stated there are many kids playing in the cul-de-sac. Mr. Thomas said this would eliminate most of the traffic problems. He referred to number 2 and said this is not an issue and has nothing to do with this project. He commented on number 3 and said the water will end up in the holding pond if the street is put in. Mr. Thomas referred to number 4 and said it is not a rural roadway it is easement on his land. He said a canopy of trees is not going to be there when a house is built. The easement was given as an access to his property. He commented on number 5 and said he doesn't think there are any detrimental problems. He stated the area is much safer. He said number 6 has been addressed. Mr. Thomas referred to number 7 and said when they moved out here there was no fire protection and they bought the lots knowing that. He referred to number 8 and said the storm water runoff will be an improvement. Mr. Thomas commented on number 9 and said he is driving on the wrong side of the road to get the mail. He stated the people that live on the cul-de-sac are in favor of removing the cul-de-sac.

Councilmember Amundsen asked what is required to vacate the easement. Mr. Norton said if the city does the project the owners could by agreement cancel or vacate that easement. He said if there was no agreement the property owners may have to go to district court to get the certificate of title. Councilmember Amundsen said the hard surface should be torn up and restored to a more natural habitat.

Mr. Thomas noted the easement goes all the way out to Baycliff Drive.

Eldon Oldre, 6455 Baycliff, confirmed what Mr. Thomas just said. He commented on having to guide a truck in. He stated he has had concerns about the children playing in the cul-de-sac.

Mayor Hershberger Thun called for a five minute recess at 8:16 p.m.

Mayor Hershberger Thun reconvened the meeting at 8:21p.m.

Ms. Geheren noted they are proposing to remove the cul-de-sac.

Ms. Geheren reviewed alternate number two which is the Diethelm Park Trail improvements. She said there would be a trail connection to Greenway on the Park and another trail connection in to the existing paved trail in the Woodlands neighborhood. The total project cost is about $50,000 which is what is in the budget.

Ms. Geheren referred to alternates four and five and stated they continue to get alternate bids for storm sewer pipe material.

Ms. Geheren highlighted the private utility improvements associated with the project. She said that Centerpoint Energy will be replacing about 600 feet of existing gas main along Auburn Drive.

A motion was made by Councilmember Roden, to Approve Resolution No. 10-67; A Resolution Accepting Bids, Ordering the Improvements and Awarding a Contract for the 2010 Street, Drainage and Utility Improvements outlined in the Resolution. The motion was seconded.

Mayor Hershberger Thun said she agrees with Councilmember Roden on the utility box and said there should be some other way to do this.

Mayor Hershberger Thun commented on Regional Council of Mayors meetings she has attended and said one city has to do all the roads now because they choose not to maintain the streets regularly. She commented on Thornberry Curve and said it is dangerous.

Councilmember O'Connor said he is going to vote for this because one of the city's primary responsibilities is the infrastructure and because of the support from the neighbors that were at the public hearing. Councilmember O'Connor commented on the numbers and said the city's cost is about $946,000. He said if there isn't time to prepare the numbers then the hearing should have been postponed. He stated out of principal the next time this happens he will vote no if they are not provided with the financial data ahead of time.

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

None.
 

Mr. Uram noted information from the LMCC conference was provided in the packet.

-A- Metropolitan Council Environmental Services

Mr. Uram said the Metropolitan Council's capital and operation plans were based on numbers that were significantly higher than what they are experiencing. He said what that means for the City of Victoria is they will see a 5% increase in the SAC charge for the 2011 budget. He noted on average there will be a 3.2% increase in the sewer rate charged.

Mr. Uram said there is information on the funding for Minnesota communities. He said the study shows almost every community in the state running a deficit by 2015. He stated they need to be careful on how they spend money. Mr. Uram said the league prepared a video that addresses the information in the packet.
 

Mr. Norton reported during the title investigation of the Kirsch property nothing was found that was a problem. He said there was one issue with Xcel has an undefined easement for utility access. He stated that a release will be given but it may take some time to get the copy of the release.

Mr. Norton reported on a recent case by the Supreme Court involving the City of Minnetonka on how the language dealing with variances is considered. He stated the Supreme Court decided that undo hardship means whatever it means in the statute.

Councilmember Roden congratulated the Mayor and City Staff on getting a sign on Highway 212.

Councilmember Paulsen asked when the awning and façade Loan Program would be back from the Business Development Committee. Ms. Kreft said the Business Development Committee will be meeting Wednesday. She said there was a survey sent out to all the business owners. Councilmember Paulsen questioned why it would then go to the Finance Committee. Mr. Uram said to review the recommendations, discussion and suggestions from the Business Development Committee. Councilmember O'Connor said he is comfortable with it just coming to the City Council.

A motion was made by Councilmember O'Connor, that the results of the Business Development Committee meeting June 30, 2010 come back in the form of a recommendation to the City Council and it be an agenda item at the next meeting. The motion was seconded. With all members voting in favor, the motion carried. Vote: 4 Ayes, 1 Nay (Mayor Hershberger Thun).

Councilmember Amundsen commented on budget responsibility and unnecessary expenditures. He said there were a variety of things that cost money that were unwarranted and without merit. Councilmember Amundsen said staff is relied on very strongly.
 

None.
 

None.
 

A motion was made by Councilmember O'Connor, to adjourn the meeting at 8:55 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.