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 Mary 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; 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 item C, an update on the MCES tunnel project and item D, an update on the RFP process for consulting engineers.

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

(3) OPEN FORUM:

Anthony Rockford, 8567 Cedar Court, said he is part of the homeowner's group in reference on 86^th Street. He said the homeowners group contacted TDI to do an additional traffic study. He explained that Friday afternoon just before the study was supposed to be done they found out they were required to get a permit which was $325. The homeowners group was going to pay for the permit, but then they found out that TDI changed their minds and didn't want to do the study. Mr. Rockford said when they asked TDI why they didn't want to do the study the response was they weren't going to make any money and they don't work with any residential groups. He noted that after TDI contacted the City they didn't want to work with the homeowner's group. He stated they are now going to hire RLK to do the traffic study. He said 86^th Street was supposed to be on the November 9^th agenda and asked that be extended to the second meeting in November. Mr. Uram said he doesn't have any issues with extending it two weeks.

Mr. Uram asked Ms. Geheren to explain the City's role in the process. Ms. Geheren said TDI contacted the City to apply for a right-of-way permit and that was approved with the fee. Mr. Uram stated he had no conversation with any representatives from TDI.
 

(4) VISITORS PRESENTATION:

None.
 

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

Ms. Johnson explained that the City has been approached by Augustana Ermerald Crest, LLC and asked the City to issue on their behalf, revenue bonds to finance the acquisition of four assisted living/memory care facilities, including the Emerald Crest facility located in Victoria. She said in the past the City of Victoria has provided financial assistance to private-sector entities in the form of tax-exempt or taxable bonds or notes, (conduit debt) for the purpose of funding capital projects that benefit the community. She noted that the City does not bear any financial or legal obligation for the repayment of the bonds. Ms. Johnson asked the City Council to approve the Resolution No. 09-110 calling for a public hearing.

Tim Tucker, President/CEO of Augustana Care Corporation, said they are a nonprofit corporation and have facilities in Hopkins, Burnsville, Dassel, Hastings and Minneapolis. He explained the Augustana Emerald Crest, LLC would like to finance the acquisition of four facilities one in Victoria, Burnsville, Minnetonka and Shakopee with revenue bonds issued by the City in a principal amount not to exceed $24,000,000. He said the issuance of the bonds by the City would be authorized by a Joint Powers Agreement. Mr. Tucker noted this fits in to their strategic plans.

Mark Beese, Finance Advisor from Northland Securities, said they have worked with Augustana for over 20 years as the underwriter. He explained the City has no responsibility lending its name to the bonds. He said they hope to close by year end and have Augustana as the new owner.

Mayor Hershberger Thun asked about the $24 million with the other cities. Mr. Beese said the $24 million is part of an aggregate amount and each city has to hold a public hearing and pass a resolution.

Councilmember O'Connor asked why Victoria is taking the lead, instead of one of the four cities. Mr. Tucker said they have a history of working with Victoria and are familiar with Victoria. Councilmember O'Connor asked if the other three cities are in agreement with Victoria taking the lead. Mr. Tucker said yes.

Councilmember Paulsen clarified that these bonds will not be issued without everyone's approval.

Councilmember O'Connor asked what happens if there is a default. Mr. Tucker said there is no downside to the City of Victoria, and Augustana is well secured and never has had a default.

Councilmember Paulsen asked about growth plans in the City of Victoria. Mr. Tucker said there may be potential opportunities.

Councilmember Roden asked about dealing with the Build America Bonds. Mr. Beese explained these bonds can only be issued by governmental entities. He noted there is talk about extending the Build America Bonds to non-for profit entities.

A motion was made by Councilmember Paulsen, to Approve Resolution No. 09-110; A Resolution calling for a Public Hearing on an issue of Revenue Bonds on behalf of Augustana Care Corporation or Affiliate with the understanding that the four cities total will not exceed $24 million. 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 October 26, 2009 Claims Roster in the amount of $327,614.26. The motion was seconded. With all members voting in favor, the motion carried. Vote: 5 Ayes, 0 Nays.

Mayor Hershberger Thun noted this is for discussion only.
 

Mr. Uram stated the Chaska Lions have donated $10,000 to the Victoria Parks and Recreation Department from their charitable gambling operations at Floyd's Bar and Vic's Bar and Grill.

Mayor Hershberger Thun commented on the proceeds and where the money goes and asked if there is a possibility of getting more. She said they greatly appreciate the $10,000 donation.

A motion was made by Mayor Hershberger Thun, to Approve Resolution No. 09-111: Accepting a donation from the Chaska Lions. The motion was seconded. With all members voting in favor, the motion carried. Vote: 5 Ayes, 0 Nays.
 

Ms. Geheren explained this is the 2008 street project final assessment hearing. She said the project costs and final assessment amounts were reviewed and approved at the September 28^th City Council meeting. She said the assessment amounts are as follows:

• 81^st Street (from 81^st Street to 80^th Street) - $6,237

• 82^nd Street (from a point 175 feet west of 81^st Street to Narcissus Street) - $2,569

• Victoria Circle (from Victoria Drive for its entire length) - $8,891

Ms. Geheren noted 81^st Street is also in the 2009 project.

Ms. Geheren stated that all three numbers are a reduction from initial cost projections. She said a notice along with information on how to pay for the assessments was mailed to the affected residents. She stated the property owners could pay in full by November 25, 2009 without interest. She said that assessments are to be payable in equal annual installments which is certified to the home owners property taxes extending over a period of 15 years with the first of the installments to be payable on or before the first Monday in January 2010, and will bear interest at the rate of 6.37 percent.

Ms. Geheren said written or oral objections will be considered at the meeting. No appeal may be taken as to the amount of an assessment unless a written objection signed by the affected property owner is filed with the municipal clerk prior to the assessment hearing or presented to the presiding officer at the hearing. The council may upon such notice consider any objection to the amount of a proposed individual assessment at an adjourned meeting upon such further notice to the affected property owners as it deems advisable.

Ms. Geheren stated an owner may appeal an assessment to district court pursuant to Minnesota Statutes, Section 429.081 by serving notice of the appeal upon the Mayor or Clerk within 30 days after the adoption of the assessment and filing such notice with the district court within ten days after service upon the Mayor or Clerk.

Ms. Geheren stated that no objections were received.

Ms. Geheren said the City Council is authorized in its discretion to defer the payment of an assessment. The owner must request a deferment of the assessment at or before the public hearing at which the assessment is adopted and make application on forms prescribed by the City Clerk within 30 days after the adoption.

Ms. Geheren stated that a request for deferment was received and the application and request will be presented at a November City Council meeting.

Mayor Hershberger Thun opened the public hearing at 6:58 p.m.

Mayor Hershberger Thun closed the public hearing at 6:58 p.m.

A motion was made by Councilmember Roden, to Approve Resolution No. 09-112; A Resolution Adopting the Final Assessment Roll for the 2008 Street, Drainage, and Utility Improvements as outlined in Agenda Statement 09-231. The motion was seconded. With all members voting in favor, the motion carried. Vote: 5 Ayes, 0 Nays.
 

None.
 

None.
 

Mr. Uram explained the reasons why they started talking about the organizational structure; to reduce overall project costs by utilizing existing staff, provide on-the-job training and to allow for reallocation of employee time.

Mr. Uram stated the city's building inspector, under the guidance of a senior construction observer from TKDA, began working in the field in May and has spent 630.5 hours observing construction projects. A benefit of this was a $40,000 reduction in TKDA billings resulting in an $18,145 cost savings to the city. He said staff expects to use the building inspector for this type of work in 2010.

Mr. Uram said there is a scheduled meeting with the neighborhood group on Thursday morning at 7:00 a.m. to hear the concerns. He said the role of council members attending that meeting will be to observe and understand what the citizens concerns are.

Councilmember Roden asked that as a courtesy to let the affected homeowners know the 86^th Street recommendation has been postponed to the November 23^rd meeting.

Councilmember Amundsen said he thinks it is bad form to have a private in home meeting with a quorum. Councilmember O'Connor said he doesn't plan to attend the meeting because of this. Councilmember Paulsen said only two members should be present so there is a clear record of what has been said.

Ms. Geheren reported that up to this point the contractor has been preparing the site at the park and along Rolling Acres Road. She said the prep work is nearing completion and they will start to work on excavation of the access shaft in the park. She said they are also placing the final lift of asphalt on the road.

Councilmember Roden commented on the Schutz Lake Homeowner's Association and said there were a number of questions including concerns with the closing of the boat lift for the summer. Ms. Geheren said they did bring that information to the weekly construction meeting and it is on a list to discuss.

Mr. Uram said the due date is next Monday at 3:00 p.m. and then a committee will start to go through the proposals and select the top three that would be selected for interviews.
 

Councilmember Roden reported at the Business Development Committee meeting Carver County Commissioner Randy Maluchnik provided an update on County Road 18. The scoping study is supposed to be done in 2010 and the construction in 2013 versus the original 2030 date.

Councilmember Roden said the banners will also be ordered to replace the existing banners. Mayor Hershberger Thun asked who is paying for the banners. Councilmember Roden said the money will come from the community development budget. She noted the marketing brochures are being donated by the Southwest Publishing group.

Councilmember Roden said there is also a continuation of the downtown business owners meeting tomorrow night.

Mayor Hershberger Thun commented on the green cities demonstration project and said they have been selected as one of five cities to receive in-kind work and participate in a green step.

Mayor Hershberger Thun reported on a meeting with the Southwest Transit group who is working on Highway 212 and Highway 5. She said she will provide a copy of the information. She stated there will be a separate meeting on Highway 5 on November 17^th at 1:30 p.m. at City Hall.

Mayor Hershberger Thun commented on the articles about the Vision 212 regional process which Victoria is part of. Mr. Uram said there have been numerous meetings on this and it was well attended with representatives across the county.

Councilmember Amundsen commented on 86^th Street and clarified that the only reason the closing of 86^th Street was brought up was in a response to the engineer. He said they welcome the input of the community to resolve an issue of safety.

Councilmember Amundsen commented on the construction of a building and not knowing about it and asked the process to be revisited. Mr. Uram stated the city code doesn't require review from the City Council. He said staff has the ability to bring these forward. He said an ordinance change could be made to the requirements section of the zoning code related to the Central Business District. Councilmember O'Connor asked about the approval process and the design. Mr. Uram said they looked at the building elevations and other zoning requirements and made sure the design was consistent. Councilmember O'Connor said he would like to see a process when the downtown is affected. The City Council talked about the process. Mayor Hershberger Thun said a review would be appropriate. Councilmember Roden suggested putting it on the consent agenda.
 

None.
 

Mr. Norton stated there are two matters to be discussed in a closed session. The first is a possible acquisition of property in the City. The second is a pending personnel litigation.

A motion was made by Councilmember O'Connor, to adjourn the regular City Council meeting into Closed Session to discuss 7975 Rose Street and the pending litigation at 7:40 p.m. 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 adjourn the meeting at 8:15 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.