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HomeMy WebLinkAbout10-01-12CITY OF LAKEVILLE CITY COUNCIL MEETING MINUTES October 1, 2012 Mayor Bellows called the meeting to order at 7 p.m. in the Council Chambers at City Hall. The pledge of allegiance to the flag was given. Members Present: Council Members Rieb, Swecker, Little, LaBeau and Mayor Bellows Members Absent: None Staff Present: Steve Mielke, City Administrator; Roger Knutson, City Attorney; Tom Vonhof, Police Chief; Chris Petree, Public Works Director; David Olson, Community & Economic Development Director; Dennis Feller, Finance Director; John Hennen, Interim Parks & Recreation Director; Daryl Morey, Planning Director; Char Friedges, City Clerk. 3. Citizen Comments None 4. Additional Agenda Information None 5. Presentations/Introductions Chris Petree presented the September Public Works Department monthly report. 6. Consent Agenda Motion was made by Reib, seconded by LaBeau to approve the consent agenda items as follows: a. Claims for payment b. Minutes of the September 17, 2012 City Council meeting c. Minutes of the September 10, 2012 Council work session d. Resolution No. 12 -103 authorizing change of liquor store operational hours e. Resolution No. 12 -104 accepting donation from FM Global to the Fire Department f. Set a budget work session to be held on October 15 from 5 -7 p.m. g. Resolution No. 12 -105 accepting donations to the Parks & Recreation Department h. Cross - Country Ski Trail Assistance Program Agreement with Minnesota DNR i. Snowmobile Trails Assistance Program Agreement with Minnesota DNR City Council Meeting Minutes, October 1, 2012 Page 2 Audit Engagement Agreement with Malloy, Montague, Karnowski, Radosevich & Co., P.A. k. Resolution No. 12 -106 calling public hearing relating to the imposition of a service charge for Special Service District No. 1 1. Resolution No. 12 -107 appointing election judges for the November 6 General Election m. Resolution No. 12 -108 rejecting bids received for the Kenrick Avenue /195 Street trail project n. Resolution No. 12 -109 approving Multi- Agency Law Enforcement Joint Powers Agreement with State of Minnesota, Department of Public Safety, Bureau of Criminal Apprehension Roll call was taken on the motion. Ayes — unanimous 7. Conditional Use Permit for McDonald's, 16205 Kenyon Avenue Ray Croaston, Project Manager for McDonald's, requested Council approval of a conditional use permit to allow the construction of a McDonald's fast food restaurant at 16250 Kenyon Avenue. Mr. Morey stated McDonald's is proposing to construct a new restaurant with drive - through service and extended hours of operation. A conditional use permit for McDonald's was approved in 2007 with the Kent 46 subdivision and Brunswick Zone planning actions; however, McDonald's allowed the 2007 conditional use permit to expire while the company re- evaluated its development plans. The proposed conditional use permit application includes double drive - through order lanes and extended hours of operation. McDonald's is requesting to open at 5 a.m. and to close at midnight Sunday through Thursday and 2 a.m. on Friday and Saturday. The Planning Commission held a public hearing and recommended approval on a vote of 6 -1. Motion was made by Swecker, seconded by Rieb to approve findings of fact and a conditional use permit to allow the construction of a new McDonald's convenience food restaurant at 16250 Kenyon Avenue. Roll call was taken on the motion. Ayes - unanimous 8. Purchase Agreement for Sale of Senior Center Mr. Olson presented a purchase agreement for the sale of the former Senior Center property. Rose Mountain Spiritual Community Center ( RMSCC), a non - profit organization, is proposing to purchase the property to be used as a church and fellowship hall. RMSCC is proposing to purchase the property for $345,000. The terms call for RMSCC to pay $200,000 at the closing with the balance to be financed on a Contract for Deed over a three year period, with a balloon payment at the end of three years. The purchase is contingent upon completion of a property inspection and approval of a conditional use permit for the proposed use. The purchase agreement requires that the City pay a four percent commission City Council Meeting Minutes, October 1, 2012 Page 3 to the buyer's agent. The purchase agreement contemplates a closing on the property to occur within 90 days. Mr. Olson explained that the Senior Center property is comprised of four parcels; three of the four parcels are owned by the City's Housing and Redevelopment Authority. Prior to closing on the property, the City will request that the HRA convey its parcels to the City. The purchaser, Rev. George Maverick, introduced himself to the Council. Motion was made by Little, seconded by LaBeau to approve Resolution No. 12 -110 approving the sale of real property and dispensing with statutory requirements for review by Planning Commission of disposal of property. Roll call was taken on the motion. Ayes - unanimous 9. Change Orders for Heritage Center Mr. Hennen presented change orders for the Heritage Center project. He explained that three major unforeseen issues arose during construction, which resulted in project costs exceeding the April 2, 2012 estimate. The issues involved structural wood trusses, parking lot soils and parking lot asphalt. These three major issues represent $72,616 or 70% of the changes to the project. The change orders total $80,444, resulting in the total project cost exceeding budget by $41,598. Mr. Hennen explained that the Heritage Center project is financed with a combination of revenue sources including the Building Fund, park dedication fees, fundraising initiatives and the net proceeds from the sale of the Senior Center. The City will accrue $17,595 in interest earnings on the Contract for Deed for the Senior Center. The Community Development Block Grant reimbursement requirements are $118,905, which represents a $17,777 reduction compared to the April 2" budget. The reduction is a result of the City's investment in the parking lot, facilities and land acquisition since the initial Senior Center project in 1984. Currently, there is approximately $110,000 collected from fundraising initiatives. The fundraising requirements have increased by $20,026 since April, leaving an estimated $169,000 to complete the fundraising goal. Council Member LaBeau asked how or why the wood trusses were compromised. Mr. Hennen stated it occurred when the building was constructed in 1984. Council Member LaBeau also asked whether soil borings had been taken for the parking lot. Mr. Hennen stated there were no soil borings. Council Member LaBeau stated that she had been opposed to any use of the contingency funds because she didn't believe it would have to be used, and with the overruns the project is almost 10% over the original budget if you use the contingency funds. Noting the significant amounts on several of the change orders, Council Member Swecker asked if these additional prices were competitive. Mr. Hennen explained that the construction management team works with the contractor to obtain the best pricing. City Council Meeting Minutes, October 1, 2012 Page 4 Mr. Mielke pointed out that the three unanticipated issues represent additional expenses that would have been incurred if they had been discovered prior to bidding. He further stated that $7,000 remains in contingency at this time. Council Member Little asked about donated labor. Mr. Hennen stated in -kind donations total approximately $68,000 to $70,000. In addition, volunteers donated approximately 2700 hours on the project. Council Member LaBeau asked for confirmation that membership had declined about 30% but is now at about a 20% decline from when the project started. Mr. Hennen stated that membership is currently at 806. Motion was made by Swecker, seconded by Rieb to approve Resolution No. 12 -111 approving change orders for the Heritage Center project. Roll call was taken on the motion. Ayes - unanimous 10. Unfinished business None 11. New business None 12. Announcements Budget Open House — Tuesday, October 2nd Heritage Center Auction Heritage Center Open House — Sunday, October 14 Video Production Staff Emmy Awards School Board, Mayor and Council Candidate Forums Next regular City Council meeting, October 15, 2012 Mayor Bellows adjourned the meeting at 7:58 p.m. Respectfully submitted, Charlene Friedges, City lerk Mark Bellows, Mayor