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, Jim Paulsen, Kim Roden, and Rick Tieden.

Absent: None.

Staff Present: David Urbia, Interim City Administrator; Cara Geheren, City Engineer; Mike Norton, City Attorney; Bruce Osborn, Public Works Superintendent; and Jylan Johnson, Finance Director.

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

Mr. Urbia asked that Item 3-I be added to the Consent Agenda; he noted the addition of the agenda statement for 7-I. He noted the revised Resolution No. 07-108.

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

Mayor Hershberger Thun read aloud the items to be considered under the Consent Agenda.

The Consent items were as follows:

Minutes of the August 9, 2007 City Council Meeting
Minutes of the August 13, 2007 Continuation City Council Meeting
Payment of Bills $178,721.28
Sheriff Reports for July 2007

-A- Request approval to apply for a MN DNR Matching Grant for the Victoria Fire Department

1. Agenda Statement No. 07-290
2. Exhibits
3. Resolution No. 07-101

-B- Field House Attendance and Daily Passes for July 2006 and 2007

1. Agenda Statement No. 07-291
2. Exhibits

-C- Three Rivers Park District 2007-2008 Winter Trail Activities Permit

1. Agenda Statement No. 07-292
2. Exhibits

-D- Acceptance of Donations from Marilynn Weber, Alan Lohman and Residential Mortgage Group, Inc. for the Victoria Fire Department

1. Agenda Statement No. 07-293
2. Exhibits
3. Resolution No. 07-102

-E-Establish the Truth-in-Taxation Hearing Dates

1. Agenda Statement No. 07-294

-F- Financial Reports for the month-ending July 31, 2007

1. Agenda Statement No. 07-295
2. Exhibits

-G- 2007-2008 Laketown Township Fire Aid Agreement

1. Agenda Statement No. 07-296
2. Exhibits

-H- Approval of Professional Services Agreement with Sifu Darren Matson of the School of Shaolin Kung Fu

1. Agenda Statement No. 07-297
2. Exhibits

-I- Approval of a letter Regarding the Funding for the Highway 5 Corridor Study and Highway 5 Bridge located in Victoria, MN

1. Agenda Statement No. 07-312
2. Exhibits

Councilmember Roden removed Item 3-B from the Consent Agenda.

Councilmember Amundsen suggested moving Item 10-A, discussion of the Land Swap agreement, to a future Council meeting since there are so many other things on the agenda this evening. Mayor Hershberger Thun advised he make that motion when the item is reached.

Mayor Hershberger Thun removed Item 3-E from the Consent Agenda.

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

Councilmember Roden asked whether additional community outreach is needed in order to shore up memberships at the Field House. She noted a letter was sent out and also published in the Victoria Gazette regarding the future of the Field House.

The Council discussed the reasons that residents may not renew their membership at the Field House.

A motion was made by Councilmember Roden, seconded by Councilmember Paulsen, to approve Agenda Statement No. 07-291, the Field House Attendance and Daily Passes for July 2006 and 2007. With all members voting in favor, the motion carried. Vote: 5 Ayes, 0 Nays.

Mayor Hershberger Thun asked whether there will be a quorum on Monday, December 3. 2007. The Council agreed there would be a quorum.

A motion was made by Mayor Hershberger Thun, seconded by Councilmember Paulsen, to approve Agenda Statement No. 07-294, establishing the truth-in-taxation hearing dates for December 3, 2007 and December 13, 2007. With all members voting in favor, the motion carried. Vote: 5 Ayes, 0 Nays.
 

(4) VISITORS PRESENTATION:

None.
 

(5) OPEN FORUM:

Pete Bren, 7914 Narcissus Court, asked Mr. Griffin to address the quality of the water before and after the installation of the water treatment plant.

Mr. Bren also commended the City for its work on the issue of the Field House. He noted that many people go to fitness facilities for the social component, which is not offered at the Field House.

Sandra Dall, 1340 80^th Street, asked about the status of the 80^th Street improvements, as she believes seal-coating has not been done for 10 years or more. Additionally, the construction of the water treatment plant has created more street deterioration.

Ms. Geheren commented she will discuss 80^th Street during consideration of Item 7-C.
 

None.
 

Ms. Geheren reported to the Council that residents on 80^th Street and Narcissus Court were sent letters regarding tonight’s meeting.

Peter Bren, 7914 Narcissus Court, asked who identified the need for the water plant originally; who designed the water plant originally; who was retained to do the project management; and who was the general contractor. He also asked about the quality of the water today versus prior to the treatment plant. He stated he believes there is almost no difference in the quality of the water.

Councilmember Amundsen stated the answers to the first few questions are all public record; the City Engineer and City Clerk would be able to locate that information.

Ms. Geheren recalled the memo that was distributed on July 12 that discussed the improved water quality. That memo outlined the iron and manganese levels in the water. She reported all the testing numbers from the memo, noting the water is meeting all EPA standards. She noted that information is all on the City’s website.

Councilmember Amundsen noted the rust has improved significantly.

Mr. Bren stated he would like still like to understand the initiation of the treatment plant. He also asked that a benchmark be established in order to identify the value of the plant.

Councilmember Tieden recalled the discussion of constructing the plant centered around heightened security concerns of the water supply, current antiquated facilities, and the need to address the needs of a growing community.

Mr. Griffin stated water standards are set by the EPA; he noted iron and manganese are not health issues but rather aesthetic issues. He stated the treatment issue was pressed by public works in relation to water meter replacement. The second issue was the need for additional wells. The long-term issue is whether a City will treat or will not treat water. The City was getting ready to create the next well, and the Council was urged to decide whether to treat long-term or not treat so that the strategy could be established.

Councilmember Amundsen asked whether there are costs of long-term impacts of treated water vs. untreated water on a community. Mr. Griffin responded there are probably studies that have been done, but that data would also be community-specific.

Mr. Bren suggested TKDA publish its data so people can assess whether the investment has been worth it.

Mr. Osborn stated that as the City grows, the system gets larger. He described the flushing process years ago prior to the treatment plant. Years ago, it took two to three weeks to flush the hydrants, and now the City can easily complete it within two weeks. Complaints have virtually ceased from the public.

Councilmember Paulsen asked whether there was baseline scientific data considered prior to the construction of the treatment plant. Mr. Griffin confirmed there was baseline data; and even today the raw water can be compared to treated water.

Mayor Hershberger Thun asked Mr. Griffin and Ms. Geheren to create a bar graph for the website, illustrating the change in water quality.

Ms. Johnson presented the staff report regarding the proposed tax levy and 2008 budget; she noted individual property taxes will only increase if the home value increased. She noted the general fund and Field House operating budget will be separated; the levy for the Field House will be $509,553. She noted there will be a general fund transfer to the Field House of $15,875 for prime time ice.

A motion was made by Councilmember Paulsen, seconded by Councilmember Tieden, to approve Resolution No. 07-103, a Resolution Approving a Preliminary Tax Levy for the City of Victoria. With all members voting in favor, the motion carried. Vote: 5 Ayes, 0 Nays.

A motion was made by Councilmember Amundsen, seconded by Councilmember Tieden, to approve Resolution No. 07-104, a Resolution Adopting the proposed 2008 General Fund Operating Budget. With all members voting in favor, the motion carried. Vote: 5 Ayes, 0 Nays.

A motion was made by Councilmember Paulsen, seconded by Councilmember Amundsen, to approve Resolution No. 07-105, a Resolution Adopting the Proposed 2008 Field House Operating Budget. With all members voting in favor, the motion carried. Vote: 5 Ayes, 0 Nays.

Ms. Geheren presented the staff report, detailing the three options available to the Council.

Councilmember Roden reported that she has worked with staff on this, and she concurs with the staff recommendation of option #3.

The Council discussed the current assessment policy.

Ms. Geheren explained the challenge in determining the assessment per property. She explained the process and the feasibility studies.

A motion was made by Councilmember Roden, seconded by Councilmember Paulsen, to approve Option 3 as outlined in the draft Street CIP summary. With all members voting in favor, the motion carried. Vote: 5 Ayes, 0 Nays.

Sandra Dall, 1340 80^th Street, stated 80^th Street is a collector street, but there are very few residents on the street. She expressed concern about the cost of the repair spread among so few residents.

Ms. Geheren stated that analysis will be completed as part of the feasibility study. She noted there is a limit that the City can assess based on added benefit to the property.

Ms. Geheren presented the staff report.

A motion was made by Councilmember Roden, seconded by Councilmember Paulsen, to adopt Resolution No. 07-106, a Resolution Authorizing the Mayor and City Administrator to Execute a Construction Cooperation Agreement Between the City of Victoria and Metropolitan Council. With all members voting in favor, the motion carried. Vote: 5 Ayes, 0 Nays.

The Council recessed at 8:14 p.m.

Mayor Hershberger Thun reconvened the meeting at 8:22 p.m.

Ms. Kreft presented the staff report.

The Council discussed the conservation easement.

Councilmember Amundsen suggested Mr. Norton contact the City of Chaska regarding the conservation easement that was placed on Victoria land.

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

Ms. Kreft provided an overview of the staff report, noting no action will be taken tonight.

Mayor Hershberger Thun noted she has previously forwarded written comments and concerns on to Ms. Kreft. Ms. Kreft concurred and noted Mr. Norton is continuing to review the agreement.

Ms. Kreft presented the staff report.

A motion was made by Councilmember Paulsen, seconded by Councilmember Amundsen, to follow the staff recommendation and approve the request to amend the developer’s agreement, noting the existing security will not be reduced until the improvements are completed and approved. With all members voting in favor, the motion carried. Vote: 5 Ayes, 0 Nays.
 

Councilmember Paulsen stated he will recuse himself from this item.

Ms. Kreft provided an overview of the staff report.

A motion was made by Councilmember Roden, seconded by Mayor Hershberger Thun, to approve Resolution No. 07-107, a Resolution approving a preliminary plat and final plat allowing for the re-plat and vacation of drainage and utility easements of Lots 1-7 of block 1 of the Gallery at Victoria to be known as the Gallery at Victoria 3^rd Addition by Victoria Gallery LLC (Pemtom Land Company). With 4 members voting in favor, the motion carried. Vote: 4 Ayes, 0 Nays, 1 Abstention (Paulsen).

Ms. Kreft presented the staff report.

Councilmember Paulsen stated he will recuse himself from this matter.

Councilmember Amundsen suggested this item be tabled so the staff and City Attorney can provide further review.

Matt Goldstein, Lennar, stated if the easement is a make-or-break issue, Lennar will add the easement. He feels progress has been made with staff, but it not such a strong concern that it is worth postponing action tonight.

Mr. Norton stated he would prefer Lennar withdraws its objections to the easement.

Mr. Goldstein stated he hereby withdraws his objections to the easement.

A motion was made by Councilmember Roden, seconded by Mayor Hershberger Thun, to approve Resolution No. 07-108, a revised Resolution approving a preliminary plat and final plat allowing for the subdivision to be known as Fox Hollow Ridge as proposed by U.S. Homes Corp (Lennar). With 3 members voting in favor, the motion carried. Vote: 3 Ayes, 1 Nay (Amundsen), 1 Abstention (Paulsen).

Mr. Urbia presented the staff report.

Jay Swenson, Victoria Chamber of Commerce, stated most of the money being asked for is for advertising and promotions for the event. The goal is to have a first-class event and to have everyone in Victoria know it is occurring.

Mayor Hershberger Thun suggested two mailings are not necessary, given that the event is one month away.

Mr. Norton stated in his opinion the contracts are not valid because they should have been executed by the Mayor and City Clerk. However, the resolution addresses only the funding and does not address the contracts.

A motion was made by Mayor Hershberger Thun, seconded by Councilmember Paulsen, to approve Resolution No. 07-110, a Resolution stating public purpose and authorizing the expenditure of funds in an amount not to exceed $7,500 minus one mailing, and that for the 2008 budget year, $5,000 is allocated provided the Chamber comes forward by December 31^st with how they are going to spend the money in 2008. With all members voting in favor, the motion carried. Vote: 5 Ayes, 0 Nays.

The Council advised that the contracts be redone so that they are between the entertainment and the Chamber.
 

Councilmember Paulsen outlined the Memorandum of Understanding, noting it provides a Joint Power Agreement with Independent School District 112. The School District will build a second ice arena with 500 seats and associated facilities. The School District will lease a pad with land adjacent to the schoolhouse for $125,000/year and an operations lease for $275,000/year. There will be a 2 percent annual increase for the term of the agreement (through 2032).

A motion was made by Councilmember Paulsen, seconded by Councilmember Tieden, to approve Resolution No. 07-112, a Resolution Approving a Memorandum of Understanding with Independent School District No. 112 for a Joint Ice Facility at the Victoria Field House. With all members voting in favor, the motion carried. Vote: 5 Ayes, 0 Nays.

This item was discussed during a closed session.

During a closed session, the City Attorney updated the Council on the status of negotiations for 2007/2008 ice contracts, the status of which is impacted by the City’s claims and litigation strategy, and recommended that the Council adjourn to a closed session to discuss the litigation strategy and the City’s claims.
 

This item was considered above.

This item was considered above.

Mr. Urbia presented the staff report.

A motion was made by Councilmember Amundsen, seconded by Councilmember Roden, to approve Resolution No. 07-111, to direct staff to complete the policy statement regarding Fund 810 uses, and authorize that the proposed project be completed, pending concurrence with the Park and Recreation Committee and the Lions Club. With all members voting in favor, the motion carried. Vote: 5 Ayes, 0 Nays.

This item was considered above.

Mr. Urbia presented the staff report.

A motion was made by Councilmember Roden, seconded by Councilmember Paulsen, to award work to Sterling Fence for a not-to-exceed amount of $4,389.00. With all members voting in favor, the motion carried. Vote: 5 Ayes, 0 Nays.
 

Councilmember Paulsen commented on power outages that Xcel customers in Victoria have experienced in the last couple of weeks.

Mayor Hershberger Thun asked staff to investigate the City’s arrangement with Xcel.

Councilmember Tieden expressed concern about the effects of the seal-coating of Wintergreen. Ms. Geheren stated this is the first complaint she has received, and she will now investigate it.

Councilmember Tieden stated there is a growing number of portable signs along the boulevard in the City. The Council asked staff to look into sign ordinances.

Councilmember Amundsen stated for the record that developments brought before the City are evaluated based on the quality of the project and the financials.
 

Mayor Hershberger Thun reminded the public of the upcoming open houses to discuss the Comp Plan. She also reported that a walkability assessment was conducted by the County and City staff.

She reported that the personnel committee met and reviewed a contract for Mark Brewer, who will be the interim Parks and Recreation Director/Field House manager. The second issue discussed by the personnel committee was Mr. Sarvi’s return on September 4. She noted the personnel committee is working on an employment agreement that Mr. Norton has provided.

Councilmember Roden thanked the public works crew for its hard work in removing and grinding up tree limbs and branches after the recent storms. She also thanked Mr. Urbia for his service to the City of Victoria.

Councilmember Paulsen asked to adjourn to a closed session to consider renegotiation of the existing contract with Three Rivers. Mr. Norton stated if the Council is going to discuss valuation of property that it may be traded or sold, it may do so in a closed session.

A motion was made by Councilmember Paulsen, seconded by Councilmember Tieden, to discuss in a closed session the negotiation of the existing Land Swap Contract with Three Rivers Park District. With all members voting in favor, the motion carried. Vote: 5 Ayes, 0 Nays.

Mr. Urbia thanked the Council for the opportunity to serve the City of Victoria as Interim City Administrator.

Mr. Norton stated Harvey Feldman has prepared the four ice contracts and sent them out. Unfortunately there are some roadblocks in the Waconia situation, which does have an impact on the legal claims situation. He believes those discussions should occur in the closed meetings.

Mayor Hershberger Thun asked Councilmember Paulsen to communicate to ISD 112 the action the City Council took this evening with regard to the Field House. Councilmember Paulsen agreed to do so.

-A- Closing on Land Swap with Three Rivers Park District.

This was discussed in a closed session.
 

Mayor Hershberger Thun recessed the regular Council meeting at 9:37 p.m. to hold a Closed Session to discuss modifying the City’s acquisition strategy based on property valuations of the land swap and to discuss the status of ice contract negotiations.

Mayor Hershberger Thun called the regular Council meeting back to order at 10:49 p.m.

A motion was made by Councilmember Paulsen, seconded by Councilmember Tieden, to table Agenda Item 10-A. With all members voting in favor, the motion carried. Vote: 5 Ayes, 0 Nays.
 

A motion was made by Councilmember Roden, seconded by Councilmember Paulsen to adjourn the meeting at 10:49 p.m. With all members voting in favor, the motion carried. Vote: 5 Ayes, 0 Nays.
 

Respectfully submitted,

Allison Burr
TimeSaver Off Site Secretarial, Inc.