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.

Members Present: Mayor Mary Hershberger Thun; Councilmembers: Tom O'Connor, Jim Crowley, Kim Roden and Tom Strigel.

Absent: None.

Staff Present: Don Uram, City Administrator; Ann Mahnke, Public Works/Park and Recreation Director; Jylan Johnson, Finance 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 under his report agenda item 11-162 a request for purchase of a new fire truck.

A motion was made by Councilmember O'Connor, to adopt the amended agenda. The motion was seconded. With all members voting in favor, the motion carried. Vote: 5 Ayes, 0 Nays.
 

None.
 

Ms. Pederson said she is a Financial Advisor with Edward Jones. She noted she lives in Victoria. She said she has been with Edward Jones for 8 years and moved the business to Victoria last November. Ms. Pederson said the move has been a positive experience and they have been doing well in town. She explained Edward Jones is a full service investment firm. She noted Edward Jones is one of the few partnerships still remaining. Ms. Pederson said she specializes in retirement planning. She provided information on her background and talked about her involvement on committees.
 

A motion was made by Councilmember Roden, 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 Crowley, to Approve the August 22, 2011 Claims Roster in the amount of $425,021.45 as submitted. 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 Resolution No. 11-83; A Resolution accepting the donation. The motion was seconded. With all members voting in favor, the motion carried. Vote: 5 Ayes, 0 Nays.
 

Ms. Kreft said the first reading was held on July 25^th. She explained there was an issue with the electrical inspection during the state shutdown since the city contracts with the state. She said based on discussions and review the ordinance is to allow the city to contract with an outside entity on an emergency basis if needed.

Ms. Kreft said at the first reading the question was brought up about doing this permanently. She noted Victoria would be the first city in Carver County to do that and the state electrical inspector suggested waiting and working with the other communities in the area. He said there was a concern about contractors being confused about who to call for permits and concern with the customer service. Ms. Kreft said staff will continue to work on this.

Ms. Kreft said staff is recommending approval of the ordinance as written.

Councilmember Strigel clarified his comment was to word the ordinance so the city had the flexibility to do electrical inspections in house if they choose to. Mr. Norton said that language could be added. He noted he doesn't see any downside to adding the language.

Mayor Hershberger Thun opened the public hearing at 6:42 p.m.

Mayor Hershberger Thun closed the public hearing at 6:42 p.m.

A motion was made by Councilmember Strigel, to Adopt Ordinance No. 376 with the addition of at the city's discretion wording as suggested by the City Attorney. The motion was seconded. With all members voting in favor, the motion carried. Vote: 5 Ayes, 0 Nays.
 

Ms. Kreft said this is a request for annexation of approximately 495 acres south of Lake Wasserman. She noted a petition was originally received last year. She stated staff recommended that all the properties west of County Road 11, north of Marsh Lake Road and east of County Road 43 be included in the annexation. Ms. Kreft explained the city entered into an orderly annexation agreement with Laketown Township in 1976 that allows the city to annex property under a joint resolution. In 2004 the city amended the agreement to allow for the annexation of Laketown development, Rhapsody and Krey Lakes to the north. Ms. Kreft said in 2005 the city decided to enact growth management guidelines. One of the resolutions staff is recommending is to rescind the growth management guidelines.

Ms. Kreft noted the only area that was not addressed in the 2004 amendment was Marsh Lake Road. She said it is planned to be a county facility in the future and an extension of Pioneer Trail. Ms. Kreft said there is a joint resolution in the packet that addresses annexation of all the property under the 2004 amendment and includes Marsh Lake Road.

Ms. Kreft said the city would enter into a maintenance agreement with the township to have them continue to maintain the gravel road. The city will reimburse them for the maintenance which costs about $6,000 a year.

Ms. Kreft said one of the questions was about the development of the area. She said there are no concept plans under review at this time. She noted there are approximately 500 to 1,800 units and if they used an average of about 3 units per acre there would be about 1,000 units available.

Ms. Kreft said another question was the tax rate. She explained the townships tax rate and the city's rural tax rate are very similar. When the properties would be developed they would be placed in the urban tax rate.

Councilmember O'Connor questioned the value to the city. Ms. Kreft said if they use the 1,200 number it would be about $1.2 million. She noted there would also be permits. Mr. Uram noted 1,000 units based on the current absorption rate would take 20 years to build so those dollars would be spread out.

Mayor Hershberger Thun asked about rescinding all the growth management guidelines. Ms. Kreft said that would be an option. She showed the plat review and said the city could choose to continue with the growth management guidelines. Ms. Kreft showed the staging plan from the comprehensive plan. Mayor Hershberger Thun noted most of the growth will be in that area. She asked Mr. Norton if they would be removing a tool if they rescind the growth management guidelines. Mr. Norton said that is more of a policy issue. He said under the current authority they can consider extending utilities. He said the question is if the city can manage the anticipated growth. Mr. Norton said he can't say whether or not the growth management guidelines that were enacted five or six years ago are still relevant but that could be reviewed.

Mayor Hershberger Thun clarified this is only the authorization for people to sell their land to a developer. Ms. Kreft said the annexation would make them part of city limits and they could actively market the property for development but would need to go thru the full subdivision process.

A motion was made by Councilmember O'Connor, to Approve Resolution 11-84; Rescinding the Growth Management Guidelines. 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 Resolution No. 11-85; A Joint Resolution Stipulating the Amendment of the Orderly Annexation Agreement No. 76-47 Among the Municipalities of Chaska, Victoria and Waconia, and the Township of Laketown: Exhibit A – Sketch and Description of the Area to be Annexed: Exhibit B – Maintenance Agreement for March Lake Road. The motion was seconded.

Mayor Hershberger Thun asked if they will have to renegotiate the $6,000 yearly maintenance cost. Mr. Uram said the $6,000 was based on actual costs and that price should be consistent for the years to come if there is no development.

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

Ms. Mahnke said the request is for two field improvements at Lions Park. She said she met about a year ago with some of the parents about creating a girls official fast pitch field. Ms. Mahnke said they received a $5,000 grant from the Twins Community. She said she also talked to Holy Family and some of the youth associations about what they could do short-term. She explained as a starting point they looked at the fencing on field number 2. The estimates on the fencing improvements would be about $16,000 and with the $5,000 grant the total expenditure would be about $11,000. Ms. Mahnke said at a minimum her recommendation is to look at the backstop and the player's benches for safety purposes.

Ms. Mahnke said the other field is the Poppitz Field. She explained Mr. Poppitz would provide the labor to install the fence if the city could help with the material. The estimate for the fence would be about $10,000. Ms. Mahnke said Mr. Poppitz has made significant contributions.

Ms. Mahnke stated the Park and Recreation Committee reviewed this and recommended the expenditure of about $21,000 for both projects to come out of the park fees fund.

Councilmember O'Connor asked if this fixes all the problems. Ms. Mahnke said no, this is the first step. She noted some of the parents are willing to do some of the labor but they need to find the specific tasks.

Councilmember Roden clarified there would be additional operating costs if Mr. Poppitz didn't donate so much of his time. Ms. Mahnke said the estimate in the summer for field maintenance is about $15,000 a year.

Mayor Hershberger Thun asked if the fast pitch team will be able to host tournaments. Ms. Mahnke said yes, they needed lights and improved fencing.

Mayor Hershberger Thun clarified Ms. Mahnke talked to the Lions about this. Ms. Mahnke said yes.

A motion was made by Councilmember Roden, to Authorize the softball and baseball field improvements at Lions Park in the amount of $21,090. The motion was seconded.

Councilmember Crowley commented on the workshop and questioned where to start drawing the line to fund a public works facility. Mayor Hershberger Thun clarified this money can't be used for a public works facility.

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

Ms. Kreft said there are a total of four land trust lots in the two subdivisions. She noted there are also three units in Madelyn Creek. She explained both Rhapsody and Krey Lakes are single family neighborhoods with average home prices in the $350,000 and $400,000 plus range. She said they have negotiated with both DR Horton and Lennar and at this time the offers are $60,000 for the two lots in Rhapsody and $65,000 for the lot in Krey Lakes. She noted that is approximately 75% of the current market value. Ms. Kreft said both builders would build comparable homes so they would be market value homes and lots. The city could potentially set up land trust program with the funds and work with the Carver County CDA. She noted background about a community land trust is included in the packet.

Councilmember O'Connor clarified the developer donated those four parcels to the city and the city is now selling them back to a builder so there is no land trust component. He questioned what is preventing them from using the $180,000 for whatever budgetary purpose they choose. Ms. Kreft said there is language that requires the developer to deed the lots to the city but there is no requirement for the city to use the lots for land trust. She noted the city has affordability goals under the Metropolitan Council that have not been met. She said there isn't any obligation that she is aware of to use the funds to offset budgetary concerns but will continue to have unmet affordability needs.

Councilmember O'Connor asked if the purchases the county CDA makes are required to be in Victoria. He questioned how they benefit from a shortfall. Ms. Kreft said staff is recommending the funds be designated within the city so none of the funds are transferred to the CDA. She noted there is an administration fee of approximately $700 per transaction. Councilmember O'Connor clarified the money stays with the city.

Councilmember Strigel asked if there are any negative ramifications for not refunding the land trust program. Ms. Kreft said the goal of the program was to meet the affordability needs. She noted the penalty would be they have to report annually to the Metropolitan Council how they are meeting the affordability goals. She noted it might impact some ability to receive grant funds.

Councilmember Crowley asked if there are other land trust lots in the city. Ms. Kreft said there are three townhome units in Madelyn Creek.

Ms. Kreft talked about the credit. She said there is a ranking annually and usually Victoria is around 31 points and about a third comes from this program. She noted the ranking is tied to grants.

Ms. Kreft stated the Metropolitan Council released the affordability goals in 2006 and Victoria's goals thru 2020 were approximately 900 units. She noted that was based on a very different market. Ms. Kreft said there are a total of 7 units.

A motion was made by Councilmember Roden, to Approve Statement 11-161; regarding the Land Trust Lots in Rhapsody and Krey Lakes which would Authorize the Staff and City Attorney to draft documents for the sale of 2635 Fieldstone Drive, 2670 Fieldstone Drive and 2595 Acorn Run to Lennar and D.R. Horton with recommendation that the money go back in the land trust program thru the City of Victoria thru the Carver County CDA. The motion was seconded. With the majority of the members voting against the motion, the motion failed. Vote: 2 Ayes (Mayor Hershberger Thun and Councilmember Roden), 3 Nays (Council members Crowley, O'Connor and Strigel).

A motion was made by Councilmember Crowley, to Approve Agenda Statement 11-161; with transfer of the funds into the general fund. The motion was seconded.

Mayor Hershberger Thun stated she can't support this for a number of reasons. She said they are a city who has managed funds carefully and continue to budget conservatively. She stated there is such a small amount to contribute to affordability which she is committed to. Mayor Hershberger Thun talked about the work that was done with the CDA for people to live who can't afford a median valued house. She commented on an article in the Star Tribune and said they have very low foreclosures in the city. In 2011 there have been 9 so far. Mayor Hershberger Thun said they need to make this a diverse and accepting city. She stated she cannot support this. Councilmember Roden said she agrees and is very disturbed by this motion and will be voting no.

Councilmember Crowley said this program doesn't work and they need to find a program that works.

Councilmember O'Connor said he didn't think this offered opportunity to anyone.

Mayor Hershberger Thun clarified the funds from the land trust program will be used to purchase foreclosed or short sale homes.

The CDA Representative said the reason the program doesn't work is because you can't put someone with a moderate income in a $400,000 home. She said if you take the funds and put it in a general pool instead of helping four people eight people would be able to be helped. She said it is reallocating and making a program that does work.

With the majority of the members voting against the motion, the motion failed. Vote: 1 Aye (Councilmember Crowley), 4 Nays (Mayor Hershberger Thun, Council members Crowley,

Councilmember Crowley said he thinks this deserves more discussion.

A motion was made by Councilmember Crowley, to Approve Agenda Statement 11-161; with the allocation of the funds to be decided at a future council meeting. The motion was seconded.

Councilmember Crowley clarified there is no allocation recommendation.

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

Mr. Pulvermacher said the request is to move forward with the purchase of a new fire engine. He said the recommendation includes putting into retirement the 36 year old utility truck. He stated this engine recommendation accomplishes having an apparatus that is universal and will meet more than 98% of the call types the city responds to. Mr. Pulvermacher stated they recommend a purchase a new engine from Rosenbauer at a purchase price of $415,084. He noted the recommendation is on a financed basis. He said the first payment would be delayed for a year and then there would be a total of 7 payments.

Mayor Hershberger Thun clarified that prior to the City Council meeting the Fire Department talked about this purchase in a workshop so this is a summary.

Mayor Hershberger Thun clarified the first payment would not be due until 2013. She commented on the budget and asked if the Fire Department could agree that for year 2012 they would not transfer $75,000. Mr. Uram noted the decision to transfer the $75,000 is the City Council's decision. Mr. Uram stated they have had those discussions with the Fire Department and they understand the budget is challenged and would be willing to cooperate. Fire Chief Walsh said they have had that discussion and it will impact the future on how they budget for equipment purchases. He said they are ok with it and they will survive.

Councilmember Crowley said he has talked to citizens and they have said don't raise the taxes and don't sacrifice the safety. He noted they were all in favor of a new fire engine.

Councilmember Roden clarified they were able to get the warranty doubled for two years and they were also able to get some pricing credits. She said the price went down to about $68,000 per year. She said she was impressed with the hard work.

Councilmember Strigel asked if the $37,500 number for additional equipment is still required to make the engine operational. Mr. Pulvermacher said yes that is still required. He noted that would be for all the loose equipment and the recommendation is to use the fire equipment reserve funds.

Mr. Pulvermacher said the purchase would be financed they will own the truck day one.

A motion was made by Councilmember O'Connor, to Approve Resolution No. 11-86; a Resolution Authorizing the Execution of the Local Contract for Cooperative Purchasing with HGAC. The motion was seconded.

Mayor Hershberger Thun questioned if they would be making the payments out of the general fund every year. She said her preference would be to use the general fund since they have worked hard to build up the equipment fund. Councilmember O'Connor said they could use the current reserve and make the payments. Councilmember Strigel said the reserve funds were set up for this purpose and in his opinion using the fire department reserve is the appropriate way to go.

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

A motion was made by Councilmember O'Connor, to Approve Resolution No. 11-87; a Resolution Authorizing the Execution of a Lease with Community Leasing Partners for the lease/purchase of a Fire Truck from Rosenbauer Fire Fighting Technology. The motion was seconded.
 

Mayor Hershberger Thun said Volksfest begins Friday night at 7:00 p.m. and there will be activities on Saturday including the Art Fair.

Mayor Hershberger Thun referred to the Victoria Spirit and clarified the City of Victoria only has 19 full-time employees. She said there is also reference in the Victoria Spirit as to how the money is being spent.

Mayor Hershberger Thun said the Parks and Recreation booklet just came out.

Mayor Hershberger Thun said there is another Mn/DOT meeting on September 15^th from 6:00 p.m. to 8:00 p.m. for business and property owners.

Allen Goldenstein, Laketown Development, said he has lived in Victoria for almost four years. He said the reason he is here is he heard about the plan to float the tax rate to fund certain projects. He voiced times are tough and this funding method would be difficult. He noted it might be best to put that before the voters so they can decide if this is the way they want to have the revenue created.

Mayor Hershberger Thun said they will be adjourning the City Council meeting and going back to the budget workshop.
 

None.
 

A motion was made by Councilmember O'Connor, to adjourn the meeting at 7:55 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.