SUNFISH LAKE CITY COUNCIL MEETING – MARCH 5, 2019

7:00 P.M. - ST. ANNE’S EPISCOPAL CHURCH

Attendants:

Mayor: Dan O’Leary

Councilmembers: Mike Hovey, JoAnne Wahlstrom, Steven Bulach and Shari Hansen

City Attorney: Tim Kuntz

City Planner: Ryan Grittman

City Engineers: Jeff Sandberg, Don Sterna and Brandon Movall

City Treasurer: Ann Lanoue

Building Inspector: Mike Andrejka
City Forester: Jim Nayes
Police Chief: Manila Shaver

City Clerk: Cathy Iago

and Members of the General Public.

1. CALL TO ORDER: Mayor O’Leary opened the meeting at 7:00 p.m.

2. APPROVE AGENDA: Mayor O’Leary asked if there were any additions or corrections to the agenda.

Councilmember Hansen requested an item be added to the agenda under Item 8.f. Other, regarding the “Minnesota Food Share Drive” to support Police Chief Shaver.

The Mayor asked if there were any further additions or changes and there was no response.

Councilmember Bulach moved to adopt the agenda as amended, seconded by Councilmember Wahlstrom and carried. (5-0)

3. CONSENT AGENDA: Mayor O’Leary asked if there were any questions or comments relating to any items on the Consent Agenda.

Councilmember Hovey explained that information related to Items 3.b.and 3.c., List of Bills and Monthly Financials, are sometimes difficult to read and asked if the Treasurer could send this information in a PDF.

Treasurer Lanoue explained that she has had trouble with her printer and that she would try to send the materials in a PDF format.

Mayor O’Leary asked Chief Shaver to provide more information on the two burglaries and the theft listed in his report.

Chief Shaver explained that one of the burglaries was due to a person whose car stalled on the highway and that person walked to a residence in Sunfish Lake and stole a vehicle. The other burglary and theft listed were due to mail thefts. He reminded residents that they should not put mail in unlocked mailboxes with the flag up and that they should install a locked mailbox or bring mail to the post office. He explained that both incidents resulted in identify thefts.

Mayor O’Leary asked the City Clerk to place an article in the next City newsletter informing residents of the mail thefts, suggesting they do not place mail in an unlocked mailbox with the flag up and recommending they purchase a locking mailbox.

The Mayor asked if there were any further comments or questions and there was no response.

Councilmember Hovey moved approval of the Consent Agenda as presented, seconded by Councilmember Wahlstrom and carried. (5-0)

a. Regular Council Meeting Minutes of February 5, 2019

b. List of Bills

c. Monthly Financials

d. Receive Building Inspector Report

e. Receive Forester Report

f. Receive Public Safety Report.

4. COMMENTS FROM THE PUBLIC: The Mayor asked if there were any comments from the public.

Ibby Hammett, 2196 Charlton Road, stated she attended the open house relating to the Charlton Road project and that she had some questions. She asked if “speed tables” would be installed on the road either now or in the future.

Mayor O’Leary explained that there are no plans to install “speed tables” at this time, but Council may consider them in the future.

Ms. Hammett asked if the speed limit will change on the road.

Mayor O’Leary explained that this would be discussed later on the agenda.

Ms. Hammett asked if staff had done their due diligence on the paving contractor and if they are confident about the contractor qualifications.

Mayor O’Leary explained that the proposed contractor had done other projects in the City and that the company completed the road improvement project on Windy Hill Road. He stated that he was very pleased with the results.

Ms. Hammett asked if the contractor would be responsible for any damage that occurs to the sewer and water lines during construction.

Engineer Sandberg responded yes and explained that staff will televise the lines both prior to and after construction to insure there was no damage.

Ms. Hammett asked if the five (5) properties owners connected to the lines could receive a copy of the report and the Engineer responded yes.

Ms. Hammett asked if there would be parking allowed on the street.

Mayor O’Leary stated that parking would be discussed later on the agenda.

The Mayor asked if there were any further comments from the public and there was no response.

5. PUBLIC HEARING/PRESENTATIONS: None.

6. PLANNING COMMISSION/PLANNER’S REPORT: a. Consider Resolution Approving the Draft 2040 Comprehensive Plan for the City of Sunfish Lake for Submission to the Metropolitan Council for Review: Planner Grittman referred to his report dated February 27, 2019 and explained that the Planning Commission held a Public Hearing to review the proposed draft and received public comments. He stated that he had made some corrections and revisions to the previous draft resolution sent to Council. He advised that Council would be requested to take formal action to adopt the resolution that approves the draft document and authorizes staff to send it to the Metropolitan Council for review and approval.

The Planner explained that a resident asked if sound barriers could be installed adjacent to I-494 and that he explained that there was language in the document relating to the City installing plantings adjacent to the interstate. He noted that he added language to the document which stated that the “City would support the installation of a sound barrier” if MnDOT chose to install one.

Planner Grittman stated that another resident asked if any changes were proposed to the lot sizes or standards and was told that there are no changes proposed. He also noted that a Commissioner questioned the 10-acre lot requirement for hunting as part of the Deer Management Program and indicated that hunting is allowed on lots of lesser size. He explained that this item could be left “as is” or more research could be done to determine if hunting is allowed on the smaller lots.

Mayor O’Leary suggested that in the future the Planner put a date on the draft copies of the document that are distributed so that Council can determine which is the most current document. He asked if the Planner had a “clean” copy of the resolution for signature purposes and the Planner responded yes.

The Mayor asked if there were any questions or comments from the Council. He asked if there were any concerns regarding the Deer Management Program information.

Forester Nayes commented that it appears to be a matter of interpretation. He noted that the draft document states it must be a 10-acre site, however, the Deer Management Program allows hunting on 2-acre sites with approval from the Police Liaison.

The Mayor asked what it would take to change the document and if it could be done.

The Planner stated that Council could amend the document as part of their action.

Mayor O’Leary asked if there were any further questions or comments and there was no response.

Mayor O’Leary moved to amend the Draft Comprehensive Plan to change the language on page 27, Wildlife section, to read 2-acres instead of 10-acre parcels and to adopt Resolution No. 19-07 titled, RESOLUTION APPPROVING THE DRAFT 2040 COMPREHENSIVE PLAN FOR THE CITY OF SUNFISH LAKE FOR SUBMISSION TO METROPOLITAN COUNCIL FOR REVIEW, seconded by Councilmember Hansen and carried. (5-0)

b. Planner’s Report: Planner Grittman referred to his report dated February 27, 2019 and stated that staff is processing an application for a Major Site and Building Plan and Conditional Use Permit for property at 357 Salem Church Road. He advised the Planning Commission would hold a public hearing and review this application at their March meeting and Council would review the proposal at their April meeting.

Council thanked the Planner for his report.

7. CITY ENGINEER REPORT: 1. Engineering Activities Undertaken in February: A. Open House for Charlton Road Project: Engineer Sandberg explained that an open house was held on February 13 and eleven (11) persons attended. He stated that there was good discussion with the residents and he responded to all their questions.

Mayor O’Leary suggested that items B & C in the Engineer’s report be discussed later on the agenda as part of the bid award discussion.

B. Charlton Road Project Bid Opening: Engineer Sandberg stated that he would discuss this item later on the agenda.

C. Charlton Road Bump Outs, No Parking: Engineer Sandberg stated that he would discuss this item later on the agenda.

D. Charlton Road Speed Limit: Engineer Sandberg referred to his memorandum dated February 27, 2019 regarding the proposed speed limits on Charlton Road. He explained that State Law does not allow posting speed limits on residential roads at less than 30 MPH unless a special waiver is granted by MnDOT. He stated that the City may request an exception for the speed limit, however, he was unsure if Charlton Road would meet the qualifications for the exception. He advised that the City could place cautionary signage with a 20 mph speed limit at points along the interior portion of the road approximately 300 to 400 ft. in from both ends of the roadway. He further noted that Chief Shaver advised that the lower speed limits cannot be enforced. Only the 30 mph limit can be enforced, unless a driver causes an accident on the road.

The Engineer advised that installation of speed tables may be discussed in the future after the road improvement is completed. He noted that the cautionary signage may assist in slowing traffic and the curve on the road also tends to slow traffic.

Engineer Sandberg stated that Council has three (3) options to consider: 1) Post the road at 30 mph with 20 mph cautionary signage installed on the interior portion of the road; 2) Petition MnDOT for a waiver to post the speed limit at less than 30 mph; and, 3) table this matter for further discussion.

The Engineer stated that staff recommends Option 1, posting the road at 30 mph with 20 mph cautionary signage on the interior portion of the road.

Councilmember Bulach asked how long the petition process would take.

Engineer Sterna explained that in his experience the process could take a minimum of two (2) years. He advised that he would not encourage the City to do so because in other cities the process had come back recommending a higher speed limit be posted. He further explained that he reviewed a possible 25 mph speed limit for the road, however, the road does not meet the criteria and most likely the petition would be denied. He agreed that the curve in the road would assist in slowing traffic.

Mayor O’Leary commented that he could not foresee MnDOT recommending a higher speed limit than 30 mph. He questioned if a meeting with MnDOT would help speed the process along and questioned why it would take such a long time to resolve.

Councilmember Hovey stated he would rather have the additional cautionary signage posted on the road than risk the possibility of a higher speed limit being determined by MnDOT.

Engineer Sterna explained that staff could do a speed study, however, past speed studies on the road did not meet the qualifications for a lower posting.

Engineer Sandberg asked if the road classification would be a factor, considering that Charlton Road is classified as a Collector Road.

Engineer Sterna responded yes and explained that there are several factors that MnDOT considers and the process takes a long time because it is not a high priority for MnDOT.

Mayor O’Leary asked if there was a chance the speed limit could be increased to 35 mph or higher.

Engineer Sterna commented that there would be a slight chance it could be raised, but, in his opinion, MnDOT would not find criteria to lower the speed below 30 mph.

Councilmember Hovey again stated he would prefer the cautionary signage be placed on the road as he does not want to risk having a higher speed limit be determined and there may be other options to slow traffic.

Councilmember Wahlstrom agreed that the cautionary signs may help slow traffic.

Engineer Sandberg pointed out that the changes to the curve in the road would be safer when the improvement is done.

Mayor O’Leary commented that Council could discuss the installation of the speed tables if problems with speeding occur. He asked if there were any further comments or questions and there was no response.

Councilmember Bulach moved to accept the Engineer’s recommendation for Option 1) Post the road at 30 mph and install 20 mph cautionary signage on the interior portion of the road, seconded by Councilmember Hovey and carried. (5-0)

E. Street Sweeping Quotes: Engineer Sandberg stated he requested quotes from three (3) companies and received two (2) quotes; Mike McPhillips, Inc. for $2,000 and Curb to Curb, Inc. for $1,050. He stated that both companies had done this work for the City in past years and he recommended hiring Curb to Curb, Inc. as the lowest responsible bidder for the project.

Councilmember Bulach asked if this was a one-time project and the Engineer responded yes.

Councilmember Hansen moved to award the Street Sweeping contract to Curb to Curb, Inc. as the lowest responsible bidder in the amount of $1,050.00, seconded by Councilmember Wahlstrom and carried. (5-0)

F. MnDOT I-494 Mill and Overlay Project: Engineer Sandberg explained that MnDOT had sent information regarding a Mill and Overlay project on I-494 that would impact traffic for residents of Sunfish Lake and the surrounding communities. He noted that MnDOT included a map and timeline for the project that would occur in stages over two (2) years.

Mayor O’Leary explained that the City of Inver Grove Heights had included an overlay of the project and map in their City newsletter and recommended that Sunfish Lake put the information on the City website and in the next City newsletter.

Councilmember Hovey stated he would place the information on the website and Clerk Iago stated she would put information in the next City newsletter.

G. Updated City Maps: Engineer Sandberg stated he had updated the City map to reflect the past years’ changes in residents. He noted a PDF copy was emailed to Council and staff and attached a copy to his report for Council use.

Councilmember Hovey explained that in the past he had placed the map on the City website, however, he asked that the Engineer send him a copy of the map with the resident names removed for privacy.

2. Building and Site review in the Month of January: Engineer Sandberg stated staff reviewed a formal application for property located at 357 Salem Church Road which would be reviewed at the March Planning Commission meeting.

3. Public Works Activities Undertaken in the Month of February: A. Signage Replacement Update: The Engineer explained that he received quotes from two (2) suppliers to replace missing or damaged signs throughout the City. He noted that a stop sign at the corner of Salem Church Road and Delaware was knocked down due to a car going into a ditch in that area. He stated that the contractor advised the work cannot be done until weather permits. However, a temporary stop sign was installed by the contractor at that location until such time as a permanent sign can be installed.

4. Anticipated Engineering and Public Works Activities for March: A. Snow Plowing/Roadway Maintenance: The Engineer explained that through the middle of February the snow plowing expense to date was at $18,000. He advised the total budget for 2018-2019 was set at $37,000 and that he would continue to monitor the costs. He advised he would continue working with the contractor and checking the emails from residents relating to road conditions. He noted that this has been an extremely challenging winter and that the salt applications do not work well with the colder temperatures. He advised that the contractor was doing his best to monitor the situation and reminded residents to slow down during bad weather conditions.

Councilmember Hovey explained that MnDOT was leaving large piles of snow at the north end of Charlton Road during plowing and that it was difficult to see oncoming traffic.

Councilmember Wahlstrom pointed out the same issue occurs at Delaware and TH 62.

Engineer Sandberg explained that he would contact MnDOT regarding the snow piles at Charlton Road and TH 62, and that he would also contact Dakota County regarding the situation at Delaware Avenue and TH 62.

B. SWPPP Public Hearing: Engineer Sandberg stated that the Storm Water Pollution Prevention Program (SWPPP) public hearing would be conducted at the April Council meeting and that Meghan Litsey from WSB would be present to review the program, receive public input and respond to questions.

C. Substitute City Engineer for April Meeting: Engineer Sandberg explained that he would be unable to attend the April Council meeting and he introduced Brandon Movall from WSB who would attend in his absence.

Council thanked the Engineer for his report.

8. NEW/OTHER BUSINESS: a. Consider Receiving and Awarding Bid for Charlton Road/Sunfish Lake Outlet Improvement Project No. 2018-01: Engineer Sandberg referred to his memorandum dated February27, 2019 regarding the Bid Award for the Charlton Road Reconstruction Project, City Project No. 2018-01. He explained that four (4) bids were received at the bid opening on February 26, 2019 at the WSB offices. He stated that Valley Paving was the lowest bid received, however there was a discrepancy in their bid. He explained that they provided a unit price for mobilization of $2,500, however, their extended price was $25,000. He noted that that the contract stated that the “Unit Prices shall prevail” and the City Attorney provided an opinion that Valley Paving could either accept the $2,500 unit price for mobilization or request to withdraw their bid due to the mistake. Staff contacted Valley Paving and they agreed to hold their unit price for mobilization, therefore, the revised contract price of $816,645.67 reflects this significantly lower price for mobilization.

The Engineer explained that Engineer Sterna had worked with this company in the past on other projects and that the company had done an excellent job on the Salem Church Road project. Staff recommends awarding the bid to Valley Paving in the amount of $816,645.67.

Mayor O’Leary referred to the Sunfish Lake Outlet portion of the bid and noted that Council had determined the thirty-three (33) affected property owners would be assessed 100% of the cost, which was estimated at $1,245 each. He pointed out that based on the bid received, the assessment would be increased to $2,224 per property unit and questioned how this happened.

Engineer Sandberg explained that during a discussion with the contractors prior to the bid opening, they indicated that this would be a great year for contractors since there are substantial opportunities available this year. He further noted that Engineer Sterna reviewed the bid for the outlet and determined that the two (2) specialized structural components were more expensive than originally anticipated. He commented that it appears all pricing is higher this year in the marketplace for items such as bituminous and signalization.

Mayor O’Leary questioned if part of the problem for the higher costs could be due to the delay in advertising the project until this year due to the lengthy easement negotiations.

Engineer Sterna commented that last year most likely would have been better to send out the bids. He also again pointed out that the two (2) structures to be installed in the outlet are specialized items and are more expensive.

Engineer Sandberg explained that the assessment hearing would be held in the fall after the project is completed and the City Attorney would discuss some options relating to the proposed assessments for the outlet improvement.

Mayor O’Leary noted that the costs are 79% higher than initially estimated and asked the City Attorney to discuss the options.

Attorney Kuntz explained that there is draft resolution to award the bid for Council consideration and Jessica Cook from Ehlers and Associates was present to discuss the bond options. He calculated that the per unit assessment price for the outlet improvement was nearly double the initial estimated assessment and the Charlton Road proposed assessment would also increase based on the bids received. He commented that a per unit assessment number could be determined once the project is completed.

Mayor O’Leary questioned the difference in the initial cost of $712,000.

Attorney Kuntz explained that number does not include the “soft costs” for staff time and other administrative costs. He stated that Jessica Cook would distribute information in her presentation relating to financing options. He advised that during the presentation staff would discussion options for sharing the financial burden.

Engineer Sandberg reiterated that the outlet costs were higher due to the specialized items that would be installed.

Mayor O’Leary asked if the wetland costs would be paid by the City.

Attorney Kuntz responded yes and explained that there was $30,000 estimated in the Feasibility Report to be used for right-of-way acquisition, however that was converted to be spent for construction costs versus right-of-way acquisition. He explained that the City would not be assessing any of the costs for the wetland improvements.

Mayor O’Leary noted that Council initially discussed the cost sharing for the assessments at 60-40%. He asked if Council has the option to change the percentage of cost sharing.

Attorney Kuntz responded yes and noted that the City has an assessment policy for improvements, however, Council has the option to change the cost sharing percentages.

The Mayor asked if there were any further questions and there was no response.

Councilmember Wahlstrom moved to adopt Resolution No. 19-08 titled, RESOLUTION ACCEPTING BID AND AWARDING CONTRACT FOR CITY PROEJCT NO. 2018-01 (CHARLTON ROAD IMPROVEMENTS) AND CITY PROJECT NO. 2018-02 (SUNFISH LAKE OUTLET IMPROVEMENTS) TO VALLEY PAVING IN THE AMOUNT OF $816,645.67, seconded by Councilmember Hovey and carried. (5-0)

b. Consider City’s Participation in the 2019 CAMP Program: Engineer Sandberg explained that he had not received the information relating to the Citizen Assisted Monitoring Program (CAMP) and would recommend placing this item on the April Council agenda.

Council concurred to table this item to their April meeting.

c. Consider Appointment of James Stowell as Alternate Representative to Serve on the Lower Mississippi River Watershed Management Organization (LMRWMO): Mayor O’Leary explained that his wife currently serves as the City’s representative to the LMRWMO and she suggested that a resident who resides on the lake be appointed to serve as the alternate representative. The Mayor advised that he contacted Jim Stowell who lives on Sunfish Lake and Jim agreed to serve as the alternate to the LMRWMO. He asked Council to ratify his recommendation of Jim Stowell as the LMRWMO alternate representative.

Mayor O’Leary moved to appoint James Stowell to serve as the City’s Alternate Representative on the Lower Mississippi River Watershed Management Organization (LMRWMO), seconded by Councilmember Hovey and carried. (5-0)

d. Discuss Permit Parking on Charlton Road and Consider Resolution Prohibiting Parking on Charlton Road: Engineer Sandberg referred to his memorandum dated February 27, 2019, regarding the proposed “No Parking” on Charlton Road. He read excerpts from the February 7, 2018 Council minutes relating to the discussion on parking and speed limits on Charlton Road. As a result of those discussions, he advised that Council determined no “bump-outs” and “No Parking” signs should be included in the project bids. He advised that it would be necessary for Council to adopt a resolution that establishes the entire road as a “No Parking” zone.

The Engineer advised that the Fire Chief had provided sections of the State Fire Code that requires a minimum of 20 ft. on the roadway at all times to accommodate access for the Fire trucks and other emergency vehicles. He noted that if parking were allowed, the City would not be in compliance with the State Fire Code. He also noted that there are roads within the City that are similar in width but do not have “No Parking” signage. Charlton Road and Salem Church Road are designated “collector” roads. If “No Parking” is determined on Charlton Road, Salem Church Road should also be designated as no parking and signed accordingly. He further advised that the road would not be in compliance with the State Fire Code if “permit parking” was allowed on the road for events.

Engineer Sandberg stated one option would be to install “bump outs” on the road. He explained there are only two (2) locations on the road that would accommodate the minimum of 8 ft. in width to maintain the 20 ft. width for fire access and provide parking to MnDOT state standards. He stated the bumps outs would only provide enough area for one (1) vehicle with a trailer to park, but not numerous cars. He noted that at least two (2) residents have stated they do not want the bump outs in front of their homes, however, they would be in front of these two homes due to the constraints in other areas. He reviewed the options for Council; 1) allow parking on Charlton Road; 2) adopt a resolution prohibiting parking on Charlton Road; 3) direct staff to add 8 foot minimum bump outs to the plan where previously proposed; or 4) table the discussion for future consideration.

Mayor O’Leary stated he originally favored permit parking, however, after reviewing the State Fire Code regulations, the City would be in violation if permits for parking were issued. He commented that it appears there are no alternatives when dealing with the fire safety issues.

Attorney Kuntz noted that the State Fire Code requires the 20 ft. width be maintained at all times, however, he noted that after a snowfall the street width is reduced.

Mayor O’Leary pointed out that the Fire Chief included a diagram showing how the Fire Department brings water to the area for firefighting and why the 20 ft. is necessary. He again stated that, in his opinion, there does not appear to be any choice but to prohibit parking on the street. He asked Council to consider additional language to be included in the resolution under the fourth “Whereas” paragraph after the wording “for safety reasons” to read “and based on recommendations from the Fire Chief and the State Fire Code”. He explained he preferred that residents are aware of why they are unable to park on the street. He commented that people respond to signage such as “No Parking Fire Lane” and are more likely to comply if they are aware of why the signage is posted.

Attorney Kuntz agreed and suggested that Council could ask the Fire Chief to designate the entirety of Charlton Road as a “Fire Lane” as another step to insure no parking occurs.

Treasurer Lanoue questioned if anyone had discussed this issue with the Church since they have overflow parking when funerals are scheduled. She commented that the church should be notified so they are prepared to relate this information when a funeral is scheduled.

Engineer Sandberg stated he would contact the church to advise them of the decision.

Mayor O’Leary pointed out that everyone on the street should be notified so they are aware of the no parking regulation when planning events at their homes and to advise lawn maintenance personnel.

Forester Nayes pointed out that if Salem Church Road is posted as no parking there would be no place to park for access to Musser Park.

Councilmember Hovey asked if it was necessary to post Salem Church Road as no parking.

Engineer Sandberg asked Engineer Sterna if Salem Church Road is wider than Charlton Road.

Engineer Sterna explained that Salem Church Road is 22 ft. wide and would not have to be posted.

Forester Nayes asked if the vehicle he uses for tree maintenance would be prohibited from parking on Charlton Road when he is trimming trees.

Mayor O’Leary explained that the Forester would be working and using his vehicle for trimming trees, therefore, it would not actually be “parked” on the road.

Meg Gehrig, 2165 Charlton Road, explained that she contacted the church to use their parking lot when she had her daughter’s graduation party at her home. She provided a donation to the church for allowing it’s use.

Councilmember Wahlstrom stated she had utilized the parking lot at Bethel Baptist Church and suggested that St. Anne’s might be able to use Bethel’s parking lot for excess parking for funerals or other events.

Mayor O’Leary suggested that the Engineer draft a letter to the Church and residents on Charlton Road explaining the basis for the Council decision and including the options to use the church’s parking lots for special events.

Chief Shaver explained that when road improvements are ordered in West St. Paul, the residents are offered the option to work with the contractor to include further improvements to their driveway where they would pay the costs. He suggested that residents along Charlton Road may be able to work with the contractor to improve a portion of their driveway to accommodate their landscaping contractor’s vehicle and equipment.

Engineer Sandberg stated he would contact Valley Paving to discuss the matter.

Mayor O’Leary suggested that such nformation could be included in the letter to residents if the contractor agrees.

Mayor O’Leary moved to adopt the resolution prohibiting parking on Charlton Road with the language amendments as discussed, seconded by Councilmember Bulach.

In discussion, Attorney Kuntz pointed out that Council had discussed asking the Fire Chief to designate the entire road as a fire lane in order to post “No Parking Fire Lane” signage.

Councilmember Hovey asked if the insurance classification would change if the City declares it a “Fire Lane”.

Mayor O’Leary stated he was unsure and it may benefit residents on the road if the classification changes.

Councilmember Bulach asked when the project would start.

Engineer Sandberg stated it would not start any earlier than April 15 and must be completed within 60 days.

Engineer Sterna pointed out that the contractor indicated he would most likely begin the project in July and have it completed in September.

Attorney Kuntz commented that it would be critical for Council to determine when the “No Parking” becomes effective and place that in the proposed resolution.

Mayor O’Leary recommended it become effective after the project is completed and Council concurred.

Mayor O’Leary as maker of the motion, and Councilmember Bulach as second ,withdrew the motion so that staff may contact the Fire Chief to determine if he would designate the entire road as a Fire Lane.

Council thanked the Engineer for his report.

e. Consider Pre-Sale Report prepared by Fiscal Advisor Ehlers & Associates for $995,000 General Obligations Bonds, Series 2019A and Consider Resolution Providing for the Sale of $995,000 General Obligation Bonds, Series 2019A relating to City Project No. 2018-01 (Charlton Road Improvements) and City Project No. 2018-02 (Sunfish Lake Outlet Improvements): Attorney Kuntz introduced Jessica Cook from Ehlers & Associates, the City’s fiscal advisor, who was present to review the Pre-Sale Report for the City’s $995,000 General Obligation Bonds, Series 2019A. He referred Council to the Pre-Sale Report dated March 5, 2019 as prepared by Steve Apfelbacher and Jessica Cook.

Jessica Cook explained the proposed bond issue would finance the Charlton Road and Sunfish Lake Outlet improvement. It is proposed to be structured with a 10 year, 9 month term. She stated the proposed issue would be $995,000 General Obligation Bonds. Since the amount of the bonds to be issued is less than one million dollars, the issue would be exempt from the Continuing Disclosure requirements and this would save the City approximately $2,800 per year for 10 years to hire Ehlers & Associates to perform the duties associated with these requirements.

Ms. Cook explained that in order to keep the amount of the bonds less than one million dollars, the City must advance $85,000 to pay for the proposed improvements. She noted that it is expected this advance would be replenished with prepaid special assessments that are received in the fall after the assessment hearing. She stated that because the bonds are being issued pursuant to Minnesota Statutes, Chapter 429, the City must assess at least 20% of the projects costs. She noted the Term/Call Feature would issue the bonds for a 10 year term. She stated that the City would be able to designate the bonds as “bank qualified” obligations, which broadens the market for the bonds and can result in lower interest rates.

Ms. Cook explained that Ehlers proposes to negotiate with United Bankers Bank so that there is no need to obtain a “rating” which would not be cost effective. She stated that United Bankers Bank provided financing for the last debt issue of the City.

Mayor O’Leary referred to the section of the report titled “Basis for Recommendation” and noted that it states that the City will likely receive prepaid special assessments, however on page 3 of the report, under “Risk Factors” it states “we have not assumed any pre-paid special assessments.”

Ms. Cook explained that the report states there is uncertainty as to the amount of assessments that would be prepaid and that is why it is listed as a risk. She further explained that if the City receives a significant amount of prepaid assessments or levies less assessment than assumed, it would need to increase the levy portion of the debt service. She stated that if the assessments are received at a different pace, the levy amount could be re-adjusted and if there is a 5-year “call date” the City could pay off a portion of the debt without prepayment penalty.

Ms. Cook stated that if Council authorizes the Bond Sale, Ehlers & Associates would proceed with the negotiations with United Bankers Bank and present the information for Council action at their April 2 meeting. If Council approves the sale, the money would be available April 25, 2019 and could be banked until payment is due for the project.

Mayor O’Leary questioned the amount of the bond sale exceeding the costs associated with the bid award.

Ms. Cook distributed information titled “As-Bid Costs” dated March 5, 2019, which provided cost break-downs for all items included in the project such as Design, MnDOT Permitting, Construction, Inspection, Survey, Testing and Administration costs as well as the Financing costs.

Attorney Kuntz noted that the costs were also broken down to show the costs associated with each individual project. He asked Ms. Cook what the process would be to create an “Official Statement” for the City to submit to the investor.

Ms. Cook explained that it is a requirement of the SEC to provide information on the nature of the sale and the document also includes information about the City such as debt ratio, valuations, etc. She stated the City Treasurer is working with Ehlers staff to complete the document and copies would be provided to Council when it is completed.

Councilmember Bulach asked the City Engineer if the bids were broken down by each project and if the range was close for the other contractors.

Engineer Sandberg responded that the bids were not broken down by each project and he was uncertain of the range between contractors. He noted that Valley Paving was the highest bid on the Outlet portion.

Attorney Kuntz asked the Engineer to explain the costs allocated for each project across the three columns.

Engineer Sandberg explained the design costs are calculated as a percentage of the project costs and are usually estimates for staff time. He noted that all the costs can be tracked to each project with the exception of the design cost for the outlet since that was part of the Charlton Road Improvement design.

Mayor O’Leary asked if there were any further questions or comments and there was no response.

Councilmember Hovey moved to adopt Resolution No. 19-09 title, RESOLUTION PROVIDING FOR THE SALE OF $995,000 GENERAL OBLIGATION BONDS, SERIES 2019A, seconded by Councilmember Wahlstrom and carried. (5-0)

Ms. Cook also distributed an informational sheet titled “Projected Levy”, which showed two Options for proposed assessments, Option A Based on Project Bid and Option B Initial Assessment Estimates. She noted that based on the Project Bid the Charlton Road assessment would be $12, 387.10 per unit and the Sunfish Lake Outlet assessment would be $2,575.76 per unit. She explained that the City retains the ability to reduce the assessment amounts, however that would increase the amount of property taxes to be paid across the City. She explained that no decision is required this evening. She noted that Option A would be a total levy of $640,000 over the life of the bonds and Option B would be a total levy of $759,000 over the life of the bonds.

Mayor O’Leary asked what the cost per household would be on property taxes.

Treasurer Lanoue stated she was unable to provide that information without calculating the numbers.

Ms. Cook stated she could prepare a tax impact report on various valued homes and bring the information to the April meeting.

Council directed Ms. Cook to prepare the report.

Councilmember Bulach stated he is struggling with the 79 percent increase in the proposed assessments for property owners.

Mayor O’Leary agreed that he has difficulty with the increased costs.

Councilmember Hovey agreed that it is difficult telling people that there is a significant increase, however, in his opinion the costs for Charlton Road have an effect on the entire City.

Mayor O’Leary asked if there were any further comments or questions and there was no response.

Council thanked Ms. Cook for her report.

f. Other: a. Discussion of Minnesota Food Share Drive to Support Police Chief Shaver: Councilmember Hansen explained that every year since 1983, the roughly 300 food shelves in the state have conducted a food drive in March. In 2011, over 3 million persons visited food shelves in Minnesota. She noted that last year, the local food shelf at Neighbors Inc. served 500 families per month and over 14,000 individuals over the year. She stated that Neighbors, Inc. is participating in this food drive in an attempt to raise 325,000 pounds and/or dollars. She would like to have Sunfish Lake participate in the effort to raise money or contribute food for this cause. Shari stated that this year there is a contest between the Hastings Police Chief, the County Sheriff and Chief Shaver to see who can raise the most money and/or food donations. The losing community’s Police Chief will receive a pie in the face. Chief Shaver lost last year. Shari would like to see Sunfish Lake support Chief Shaver so that he doesn’t lose again.

Councilmember Hansen asked that Council, Planning Commission and staff participate in the event by bringing food or a monetary contribution to the next meeting to support Neighbors, Inc. and Chief Shaver. She asked that everyone contact their neighbors to solicit their participation and asked that items such as non-perishable food, cooking oil, laundry detergent, etc. be brought to the next meeting or dropped off at Neighbors, Inc. with a note supporting Chief Shaver or at the WSP City Hall.

Mayor O’Leary stated he also received a letter from the Executive Director of Neighbors, Inc., Charles Thompson, with a request for support. The letter was forwarded to all of the Mayors in the neighboring communities. Charles noted that the United Way would no longer supply funding to Neighbors, Inc., which would result in an 8 percent loss in revenue for the organization (roughly $90,000).

Chief Shaver thanked Councilmember Hansen for requesting support for the project and noted that there are numerous people living on the streets or in their cars EVERY DAY who depend on the food shelf. He offered to have a Police car drive around the City to collect contributions.

Mayor O’Leary asked if there was any further business and there was no response.

9. ADJOURN: Mayor O’Leary moved to adjourn the meeting at 9:10 p.m.

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Catherine Iago, City Clerk Dan O’Leary, Mayor