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HomeMy WebLinkAboutCity Council Minutes 05-20-2003 SpecialAdopted Minutes Special Council Meeting May 20, 2003 Mayor Johnson called a Special Meeting of the Plymouth City Council to order at 7:00 p.m. in the Plymouth Creek Center, 14800 34`h Ave. N., on May 20, 2003. COUNCIL PRESENT: Mayor Johnson, Councilmembers Hewitt, Slavik, Bildsoe, Neset, Black, and Stein. ABSENT: None. STAFF PRESENT: City Manager Johnson, Financial Analyst Mike Kohn, Community Development Director Hurlburt, Public Works Director Faulkner, and Deputy City Clerk Gulbrand. Pond and Drainage System Maintenance Public Works Director Faulkner gave a brief summary on what had been discussed at the April 8, 2003 Special Council Meeting and reported on the system background. From 1991 through 2002, the City has entered into 135 Pond Maintenance Agreements covering 190 water quality ponds. There are approximately 520 other drainage basin areas which the City is responsible for maintaining. At the April 8, 2003 Special Council Meeting, four options were offered: 1. Continue existing program; this would involve addressing only top priority or "urgent' drainage issues as they arise within the current budget constraints. 2. Contract out NURP pond cleaning; contractors would be hired to remove sediment from the water quality ponds that are currently subject to Pond Maintenance Agreements. 3. Provide incentive for property owners with Pond Maintenance Agreements; the City could reduce the surface water fee for those property owners with Pond Maintenance Agreements that are able to document inspections as required and the accumulation of funds to provide future pond maintenance. 4. Clean ponds by expanding City capability; add four additional City employees and the necessary capital equipment to enable City forces to maintain all water quality ponds at an initial total cost of $836,000 and an ongoing cost of $431,000 per year. At the Special Council Meeting the council directed staff to provide information on the cost to dispose of sediment removed from ponds as well as staff's approximate cost for inspection and assessments for pond cleaning projects which would be needed within the next five to ten years. Adopted Council Minutes Special Meeting of May 20, 2003 Page 2 of 10 Public Works Director Faulkner stated that the additional research and financial analysis has been completed. He indicated that a significant variable in the financial analysis is how capital improvement projects will be funded by the Bassett Creek Watershed Management Commission BCWMC). The recent discussions indicate they will likely be funded by an ad valorem tax across the watershed and will not be funded by the City's Water Resources Fund. Public Works Director Faulkner stated that there is another significant variable that had been looked at in more detail; which is the timing of the needed pond maintenance. Based on a 15 year pond cleaning cycle, which is a gross estimate, there are just a few which would need cleaning in the next couple of years. There would not be a significant amount, for example 20 to 30 ponds, which would need to be cleaned for four to five years. He stated that the delayed cost will allow the City to save money in the early years by contracting for needed maintenance rather than hire additional staff and in later years, in-house cleaning of ponds could be considered. Public Works Director Faulkner reported on the two financial analysis sheets that Financial Analyst Mike Kohn prepared: Contractual Pond Cleaning — No Rate Increase which includes the cost for cleaning the 190 water quality ponds at an estimated cost of $15,000 per pond; but, does not include the capital projects for Medicine Lake or $31,000 capital cost for Parkers Lake, assuming that these will be covered by the BCWMC. It does include the costs in the City's Water Resource Management Plan for the other lake studies as well as identified watershed activities and non -capital efforts on Medicine Lake. The analysis shows that the City could contract out the cleaning of all 190 water quality ponds on a 15 year cycle with no increase in the storm water utility fee. It does not include any fee increase for inflation which will be necessary since projected costs were not adjusted for inflation. An inflator of 1% for future growth has been included through 2018. Beginning in year 2007 there would be approximately $200,000 available on an annual basis for unspecified capital projects to improve the water quality of lakes throughout the City. The problem would be in year 2015 when there is a fund balance of approximately $54,000. Mayor Johnson asked what fund balance would the City want. Financial Analyst Mike Kohn replied that a half million to one million dollars would be comfortable to take into account swings of revenue and expenditures. 2. Contractual Pond Cleaning — 2004 Rate Increase of 4.6% which includes a one-time increase in the Surface Water Fee of 4.6% in 2004. This increase of $.15 to a monthly rate of $3.40, which approximates the rate of inflation since the fee was enacted in 2001, would provide $200,000 annually for future projects to improve lake quality beginning in 2007. This would improve the minimum fund balance of $1,254,000 versus $54,000 in year 2015. Adopted Council Minutes Special Meeting of May 20, 2003 Page 3 of 10 Councilmember Stein asked if this is a one-time increase. Public Works Director Faulkner replied yes and that they are not adjusting for future inflation; but, this would make up for the past couple of years. Councilmember Black asked if the savings from the property tax that Bassett Creek would have as a result of Basset Creek Watershed Management Commission levying that tax would be used then to clean all the ponds in the City. Public Works Director Faulkner replied yes, this would be part of what would happen because everyone is paying the surface water fee. City Manager Johnson stated that another way to look at it is that the Bassett Creek area has an unusually high amount of capital expenditures compared to the rest of the City, and this is a way to take that burden on. He also indicated that one other point is in the southwest part of the City in the Minnehaha area where they have had a property tax in their side of the city for many years. Jerry Unger, Board Member of Harrison Place Townhomes, stated that all of the townhouse associations have already undergone the capital cost for their ponds by paying for it within the price of their homes. Public Works Director Faulkner stated that part of the analysis for using the $15,000 per pond cleaning does not include disposal costs outside of the City. The staff feels there is the possibility that disposal sites could be obtained or currently exist. Three sites have been identified for potential disposal, one is the existing City park site south of Schmidt Lake Road and west of I-494 adjacent to the ASE property (Fluidyne). This site is very low in certain areas and a significant amount of disposal material could be deposited in these low areas. Some of the problems involved with this site include access and existing trees. Negotiations with the property owner for joint access use of their drive would significantly alleviate the access problem and further analysis of tree loss would need to be completed. The site abuts a portion of the Savannah neighborhood and is visible from I-494. Therefore, this may be a benefit to construct berms to screen the neighborhood from the filling operation and I-494. Councihnember Hewitt voiced her concern with the disposal sites being close to residential areas and would like to know what would be taken out of the ponds. Councilmember Black stated some of the collection from the bottom would be sand, car fluids, brake pad metal shavings, and goose droppings. The material in the bottom would be anaerobic when dug out and there may be a temporary sulfur smell until it is spread, which may be a up to a half day. City Manager Johnson stated that the pond cleaning process is not new in the City. Last winter there were 13 ponds and drainage ditches that had been cleaned out. Public Works Director Faulkner stated that there have been studies that the materials that are taken out are not hazardous and the City has not received any complaints from the smell. Mayor Johnson stated that currently the neighborhoods are responsible for cleaning out the ponds and they would need to find a place to dispose of the material that was taken out. She Adopted Council Minutes Special Meeting of May 20, 2003 Page 4 of 10 feels that there needs to be some coordination for the disposal because it cannot stay in the ponds. Councilmember Hewitt asked about the cost if disposal took place outside of the City. Public Works Director Faulkner stated that the cost of pond cleaning would double if it was trucked out of the City. Councilmember Slavik asked if the City would be notifying the neighborhoods that would be affected by the disposal process. Public Works Director Faulkner stated that there would be a significant public process before anything would be finalized. City Manager Johnson stated that since the first pond was built in 1991, we have a minimum of five years to work out the details for the best site and go through the appropriate process. Councilmember Bildsoe asked what was the City's intention when the ponds were built in 1991. It was stated that the associations were to be responsible for cleaning the ponds. He voiced his concern that he does not have enough information available to make a decision at this time and he is not interested in raising the surface water management fee. He feels there has to be some revenue sharing here between the associations or the people directly involved in this. Mayor Johnson stated that legislation had taken place prior to the 1990s. When this was instituted in 1991, it was because of federal laws to have cleaner watersheds and there was a learning curve for all of the local units of government. She said at that time, there was no thought on how the neighborhoods were going to handle this issue. Mayor Johnson stated that the watersheds are going to add the ad valorem tax on and we are going to have money available that is undedicated to projects. She feels we are in a window of time where we do need to give staff direction, since the ponds are going to come up in a few years. Councilmember Black stated that we don't know what is the full extent of what needs to be cleaned and what this entails financially. She is uncomfortable with the fee because it's too general and doesn't target the residents who are using the ponds. Councilmember Bildsoe feels that some of this needs to be local. Councihnember Hewitt agrees that this issue needs to be discussed further, since it will happen in three to five years. Carol Mueller, resident, asked about the projections that were on 190 ponds and if this is a static number. It was stated that this number will increase in time, since there will be more ponds due to further building. She also asked if it would be made up for with more people, is it proportional or should there be some factor to consider future growth. Financial Analyst Kohn stated that this long-term cash flow projection includes two cycles of time for cleaning and there was an allowance in there for future ponds. Adopted Council Minutes Special Meeting of May 20, 2003 Page 5 of 10 Jerry Unger, Board Member of Harrison Place Townhomes, stated that he feels the residents are paying their share of the costs and would like some fairness. Councilmember Neset stated that the scope of the project should be looked at since there are 190 ponds. He doesn't think that there is anyway that you can get associations or private entities to take care of something like this because it is so large. He feels that the City is the best one to handle the administration to clean the ponds. He stated that Plymouth was the innovator in putting these ponds in and if we don't do something with the ponds now, what will happen in the future. Councilmember Stein stated that there are a lot streams and wetlands in his Ward that are clogged up and asked if we are going to clean these too. He referred to Public Works Director Faulkner's report that said "As previously discussed, there is currently a significant backlog of other drainage maintenance needs not being met with this proposal. Staff will be reviewing budget options over the next several years to help prioritize and address this backlog." He feels if we are going to have extra money because of the Bassett Creek Watershed, he thinks there are other priorities that this money should go to before we clean the ponds of these homeowners associations. He feels the City could clean the ponds and assess the associations and/or homeowners. Councilmember Black said she likes the idea of having those using a particular area be assessed for the cost of maintaining that particular structure because it doesn't affect everybody in the City it affects them and how they impact the environment. Councilmember Slavik does not agree with raising the fee and she feels it is the homeowners' responsibility. Mayor Johnson asked what do we do when neighborhoods don't have the money set aside, how would the cleaning of the ponds be enforced. Councilmember Slavik referred to the report that stated "Staff feels that assessing pond cleaning costs would be a very difficult process and legally questionable." Mayor Johnson stated that the legislature will not let us do it. City Manager Johnson stated that under Section 429 of the State Statue, "to assess a property you must show that that particular project benefits that particular property to the degree that the property value goes up by at least that much or more than the amount of the assessment". A conversation took place on enforcing the current agreements and that it would be quite difficult and expensive to enforce. Councilmember Slavik asked if we ever said that the surface water fee is dedicated to cleaning ponds. Mayor Johnson said no. Councilmember Slavik said the fee was dedicated to the water quality plan and improving the condition of our lakes not cleaning of the ponds. Therefore, she doesn't feel that anyone will be paying double under this scenario. Also, Option 3 in the report stated "provide incentive for property owners and possibly reduce the surface water fee for those Adopted Council Minutes Special Meeting of May 20, 2003 Page 6 of 10 property owners". She stated that this is the only option she agrees with and would like to leave it up to the homeowners association to pay for the pond cleaning. They would have the ability to hire someone who has the knowledge. Elizabeth Thornton, Plymouth's Commissioner on the Bassett Creek Water Management Commission, stated that they brought back to the steering committee working on the Second Generation Plan, which is their Capital Improvement Project (CIP), and wanted to add from Plymouth the ponds into that so it would be a part of that and it was turned down. She had brought it up again at a commission meeting and it was not even considered to put that into the project. She spoke about the ad valorem tax, which only pertains to the capital improvements, and we would still have to pay the administrative part. Mayor Johnson stated that there will be a Special Council Meeting on June 16 to discuss Bassett Creek Water Management Organization. Jerry Unger, Board Member of Harrison Place Townhomes, expressed his concerns on the pond contracts and a conversation took place on the legalities involved. Councilmember Bildsoe asked if we consider the ponds as public property. He would like to consider this as a fundamental decision. Making this argument he thinks the City should assume responsibility for cleaning the ponds. But, with that there is a responsibility that the City should maintain those NURP ponds as they are intended to be maintained. Which means everything has to grow around it or has to be buffers. It has to be done right so that the pond works effectively cutting down our responsibility in future years to clean the ponds up. He feels it is a public improvement and has to be treated as a public improvement. Councilmember Black agreed with Councilmember Bildsoe. Councilmember Stein agrees with Councilmember Slavik on Option 3. He feels the homeowners have to take some responsibility; but they should get a reduction somewhere in their surface water fee for assuming that responsibility. Carol Mueller, resident, asked if it is left up to the homeowners association, who decides when it needs to be done and if it has been done adequately. Mayor Johnson replied that if the companies are licensed through the City, the City could set standards that contractors would have to abide by to help protect the neighborhoods. Councilmember Hewitt asked during what months have the ponds been cleaned. Public Works Director Faulkner stated that the City has not cleaned any ponds for treatment. But, pond cleaning would typically take place during the winter months. Councilmember Slavik asked what steps would be taken if hazardous materials were found during pond cleaning. Public Works Director Faulkner indicated the MPCA would need to get involved and give proper direction. Adopted Council Minutes Special Meeting of May 20, 2003 Page 7 of 10 Councilmember Bildsoe suggested that education take place with the homeowners on maintaining the areas around the ponds. Councilmember Hewitt feels that it would be very difficult to enforce with the homeowners. Mayor Johnson indicated that we have ordinances that would allow the enforcement. Councilmember Stein asked if any of the developments that have added ponds have received any density bonus or special consideration. Community Development Director Hurlburt replied no. Since the City has been requiring NURP ponds, it has become part of the basic infrastructure that goes into any development. Councilmember Stein asked if the City takes over cleaning the ponds for homeowners associations, would we do the same for commercial developments, industrial developments and office parks. Public Works Director Faulkner stated that they are included in the 190 ponds and they are paying the fee. Councilmember Stein is in favor of Option 3 and feels that the homeowners should have some responsibility. Jerry Unger, Board Member of Harrison Place, stated that the associations should not bear any costs. Councilmember Neset asked what would the City do if an association cannot or will not pay for the pond cleaning. Mayor Johnson replied that it would be a legal process. Councilmember Hewitt asked what would be the cost if you had to transport the material taken out of the ponds out of the City to dispose of. Public Works Director Faulkner stated that it would cost approximately $15,000. Motion was made by Councilmember Hewitt, and seconded by Councilmember Neset, to have staff continue checking further options for an overall policy, which would include Option 3, and everything is contingent upon the factors. With all members voting in favor, the motion carried. Councilmember Black requested staff to provide information that pertained to the education of the residents from the last two years of the Environmental Extras. The Council took a five-minute break. Medina Road Community Development Director Hurlburt stated that the purpose of tonight's discussion is whether or not to initiate an amendment to the Comprehensive Plan to remove the un -built segment of Medina Road from Vicksburg Lane to Dunkirk Lane from the City's Transportation Plan. Adopted Council Minutes Special Meeting of May 20, 2003 Page 8 of 10 She sated that Council has been given the background from the previous studies that have been done and the history of why Medina Road is on the plan. She noted that there hasn't been a real detailed study for quite a while and there have continued to be changes in the impacted area. She indicated that in order to amend the Comprehensive Plan to remove this section of road, the City will need to demonstrate to the Metropolitan Council and MnDOT that the change would not have a negative impact on TH 55. If this cannot be demonstrated, the City may be put in a very difficult position to justify the amendment in light of the promising work underway with the Corridor Coalition to move TH 55 higher in priority for future improvements. Also, the Plymouth citizens will need an explanation of how they might be affected. She stated that we do not have a good cost estimate on what the road would cost, so at this time we could not say this is the economic cost versus the benefits. If a study was done now, it would give us the needed data for proceeding to the next step. Community Development Director Hurlburt indicated that to increase the priority for improvements and preserve right of way to the TH 55 corridor in Plymouth we should request the Metropolitan Council reclassify TH 55 west of I-494. If the road were reclassified, it would increase the priority of the TH 55 for funding. She indicated that both districts of MnDOT involved in the TH 55 corridor are very supportive. She said there is currently no impetus or funding to build any part of the road. We have been under the operating assumption, per MnDOT and the Metropolitan Council, that it would only be built if it absolutely needed to be in the overall design. But, it would be a premature action for the city to take it off the plan now without doing the studies and considering how it would affect everything else. She indicated that another option would be to defer considering an amendment for Medina Road until the next update of the City's overall Transportation Plan. She also stated that if it is decided to go ahead with the plan amendment, the process needs to be discussed. When proposed amendments to the Comprehensive Plan affect specific parcels, the City's policy is to notify all property owners within 750 feet. We have previous studies that show the effect of taking this road off the system ultimately could have a fairly wide impact on the city and not just within 750 feet of the actual road itself. The Council should discuss to whom and when to send. notices if an amendment is initiated. She feels that we should have current data available prior to approaching the public process. A previous study showed that there would be a large impact to 36th Avenue, between Vicksburg and County Road 9, where 1,500 trips would divert. A similar impact would be to Dunkirk Lane south of Medina Road. 24th Avenue, 22 d Avenue and CSAH 6 would share the remaining impact of 1,500 diverted trips. Adopted Council Minutes Special Meeting of May 20, 2003 Page 9 of 10 City Manager Johnson stated that a lot of questions cannot be answered tonight because we do not have updated information. He thinks the point is to get updated information before a final decision is made. Mayor Johnson asked if the process would be to send it to the Planning Commission. Community Development Director Hurlburt replied that the Planning Commission is not going to generate the traffic study. Before it is referred to the Planning Commission, we need to be authorized to get the study done so that when we go to the Planning Commission and have a public hearing we have the data to explain. Councilmember Hewitt voiced her concern with filling in the wetlands. Community Development Director Hurlburt replied that sometimes we have to balance all of the environmental and transportation benefits and decide if it is worth filling in the wetlands. She said sometimes there is an impact to the wetlands when there is an absolute need for something to be built. Councilmember Black asked if there is any high ground to the north. It was stated that there are wetlands only. Councilmember Bildsoe stated that he is not in favor of spending money on a traffic study at this point and would like to address this at the next Comprehensive Plan discussion. Councilmember Slavik does not agree to putting local traffic on local roads and through neighborhoods. She asked when is the update of the City's Transportation Plan. Community Development Director Hurlburt replied that it would be part of the overall Comprehensive Plan update, which is due in 2008. Councilmember Slavik asked about the surcharging techniques which could be used rather than removing or replacing the wetland soils. Public Works Director Faulkner replied that this surcharging technique could be used to reduce costs. He stated that the roads would be built up in layers with clay or other materials and it packs the soil underneath the roads over a period of time. Councilmember Slavik is concerned with the added traffic on the roads and the safety issues surrounding the school buses and children. Councilmember Stein stated that he is not in favor of spending any money on a study. Councilmember Bildsoe agreed. Mayor Johnson asked if we could use any of CSM's traffic studies for this purpose. Community Development Director Hurlburt replied that we have a traffic study underway right now that looks at CSM's alternatives for the Dana site and we have added to that some questions that we wanted answered, which include pedestrian access across TH 55 and potential redevelopment of property on the east side of Vicksburg. CSM's part of it is $7,000 and our part of it is $2,500, Adopted Council Minutes Special Meeting of May 20, 2003 Page 10 of 10 which is being paid for out of money that is in the budget. We expect some results back no later than the end of the month. Public Works Director Faulkner stated that it will not address the Medina Road link. Motion was made by Councilmember Black, seconded by Councilmember Neset, to not act on this until the next Comprehensive Plan review, when the 2008 process begins. Councilrnember's Black, Neset, Bildsoe and Stein voted in favor; Hewitt, Slavik and Johnson voted no, the motion carried. Future Study Sessions Councilmember Hewitt requested to add Pond and Drainage Issues (late summer) to the pending Study Session list. Councilmember Stein requested to add speed tubes, which are used for speed studies to the pending Study Session list. Both items had sufficient councilmember support to add these items. Update with City Manager The Council received an update from the City Manager on various topics. Adjournment Mayor Johnson adjourned the meeting at 9:58 p.m. Sue M. Gulbrand, D-eputy City Clerk