- DRAFT –

 SUNFISH LAKE CITY COUNCIL MEETING – OCTOBER 4, 2022

7:00 P.M. – ONLINE MEETING

Attendants:

Mayor:  Dan O’Leary

Councilmembers:  Shari Hansen, and Ginny Beckett

City Attorney:  Tim Kuntz

City Planner: Lori Johnson

City Engineer:  Jeff Sandberg

City Treasurer:  Ann Lanoue

Building Inspector: Mike Andrejka
City Forester: Jim Nayes
Police Chief:  Brian Sturgeon

City Clerk:  Cathy Iago

     and Members of the General Public.

Councilmembers Mike Hovey and Steven Bulach were absent.

1.   CALL TO ORDER:  Mayor O’Leary called the meeting to order at 7:00 p.m.   The Mayor thanked Councilmember Hovey for conducting the September meeting in his absence.  He explained that Councilmember Hovey had injured his ankle and had surgery yesterday, therefore, he was unable to attend tonight’s meeting.

Clerk Iago advised that Councilmember Bulach called to say that he may be unable to attend or may arrive late to tonight’s meeting.

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

Clerk Iago requested that Item 8.c. Resolution Appointing Election Judges for the November 8, 2022 General Election be amended to remove Ginny Beckett’s name from the list.  She explained that Councilmember Beckett cannot serve as a judge since she is a candidate on the ballot.

Mayor O’Leary requested an additional item be placed under 8.d. Other, titled Discussion of $2,709.35 Escrow Agreement for the property at 300 Salem Church Road. He asked if there were any further additions or corrections and there was no response.

Councilmember Beckett moved to adopt the agenda as amended to include the revision under Item 8.c. Resolution Appointing Election Judges and Item 8.d. Other by adding Discussion of $2,709.35 Escrow Agreement for 300 Salem Church Road, seconded by Councilmember Hansen and carried. (3-0)

In discussion, Mayor O’Leary explained that he reviewed the September Council meeting minutes and that he agreed with the Clerk’s recommendation and Council decision to increase the Election Judges salary.  He stated it is his opinion the judges are the most vital protectors of our freedom and that, in the future, he would propose an additional increase in salary to at least the minimum wage of $15.00 per hour. 

Council concurred with the Mayor’s recommendation to increase salary for election judges in the future.

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

In discussion, the Mayor questioned several items in the budget analysis information, including the 2022 street projects and questioned if the City should anticipate a budget deficit this year or if the tax payments in December would cover the deficit.

Treasurer Lanoue explained that if all tax revenues are paid the deficit shown would be reduced, however, the December tax payment from Dakota County is usually less than the payment received in July. 

Mayor O’Leary questioned if the City should anticipate a budget deficit.

Treasurer Lanoue responded no and explained that the City usually receives all of the tax payments and has not had a delinquency issue in the past.

The Mayor asked if there were sufficient funds to cover the budget shortage until December and the Treasurer responded yes.

Mayor O’Leary questioned the fact that there was no information regarding the escrow accounting deficit included in the Financial reports this month as per discussion at the August meeting and confirmed again last month at the September meeting.

Treasurer Lanoue stated that she had not yet completed review of the escrow accounts and hoped to have it ready for the November meeting. She indicated that it would be a separate report and not part of the regular financial reports.

Mayor O’Leary noted that at the September meeting Council discussed placing $103,000 into reserve funds to cover the escrow deficits.  He advised that he wished to confirm the discussion that took place at the City Attorney’s office on this matter a few months ago.  He explained that it was his understanding that Council does not have to place money into the reserve funds to cover the escrow deficit because once the Council makes the decision to write off the escrow accounts, it would not reduce the cash balance.  He stated that this is only a journal entry and does not actually reduce the cash balance. 

The Mayor pointed out that if the City had properly billed and received the payments from the property owners, the current reserve funds would be a greater amount.   He noted that the payments were made by the City, however, the funds were never collected from the applicants at the time they were accumulated.

Mayor O’Leary noted that at the meeting in the Attorney’s office, the Treasurer was directed to check with the State Auditor to determine what procedure would be used to balance and offset the escrow deficit. He asked the Treasurer if she had contacted the State Auditor.

Treasurer Lanoue explained that she had not yet contacted the State Auditor, as she would prefer to compile the total amount of the deficit prior to asking the auditor what needs to be done.

Mayor O’Leary stated that he was attempting to schedule an audit of the City finances in January and asked that the Treasurer contact the State Auditor and explain that the deficit amount would be roughly $10,000.

Treasurer Lanoue agreed to do so.

The Mayor noted that the Treasurer agreed that there are sufficient reserves for the City to conduct business and he asked the Treasurer if she would agree that we should not be charging the residents a second time for additional reserve funds. 

Treasurer Lanoue agreed. 

The Mayor explained that this matter was extremely confusing as he was under the impression that the funds had to be paid back to the City.  He reiterated that this is basically a “journal” entry to correct the deficit. He stated that there is no need to include any additional funding in the proposed budget because that would mean that the City was charging residents twice.

Treasurer Lanoue explained that she was not able to complete the project but she had been working on it.

Mayor O’Leary stated that this had been pending since last December and it needs to be done.  He asked the Clerk to place this item on the November agenda so that the Mayor is in position to talk to the State Auditor regarding what needs to be done to correct the situation.

The Mayor stated that he strongly believes the City should not be increasing taxes to cover the escrow deficit. He noted that there are sufficient resources in the general fund, and that in his opinion the City would be double charging residents for the error. He asked if the current proposed budget information includes the additional funds.

Treasurer Lanoue responded yes and advised that $103,000 was included in the preliminary budget adopted, but Council has the option to reduce the budget at the December meeting.

Mayor O’Leary stated that it is his opinion that it should not be included in the budget and that the City should not be asking residents to pay more taxes without just cause. He pointed out again that the City has sufficient reserves and is in good financial shape.

The Mayor asked Treasurer Lanoue if there was a scenario compiled that showed the preliminary budget and tax levy without including the $103,000 deficit. He also asked if she had prepared a calculation on five (5) homes showing the budget impact without the $103,000 included.

Treasurer Lanoue stated that she had not prepared that type of comparison, but offered to prepare a calculation by removing the $103,000, which would reduce the tax rate and levy. She stated she would prepare the information for the December meeting and would also prepare a spreadsheet with the tax impact on five (5) homes for that meeting.

The Treasurer asked that the Council call or send her emails with any further questions prior to the December public hearing meeting so that she could prepare materials to respond to their questions.

Attorney Kuntz questioned what the City does with funds that are not used during the year.

Treasurer Lanoue explained that any funds that are not spent for the purpose they were budgeted for during the year are placed in the general fund cash reserves.

Mayor O’Leary noted that the staff has been fiscally responsible and indicated that this is how the reserves are built up over the years, and that is why the City is in good shape financially. He stated that in his opinion it is not necessary to increase the reserves.

Councilmember Beckett commented that it was her recollection that during discussion of the preliminary budget adoption in September, Council appeared to concur that the $103,000 most likely would be removed from the budgeted amount.

Treasure Lanoue agreed.

Mayor O’Leary noted that this was a bad month for False Alarms and encouraged residents to be more attentive when setting and disarming alarms. He asked if there were any further comments and there was no response.

Councilmember Hansen moved approval of the Consent Agenda as presented, seconded by Councilmember Beckett and carried. (3-0)

a.   Regular Council Meeting Minutes of September 6, 2022

b.   List of Bills

c.   Monthly Financial Statements

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 and there was no response.

Building Inspector Andrejka left the meeting at 7:30 p.m.

5.  PUBLIC HEARING/PRESENTATIONS:  None.

6.  PLANNER’S REPORT:  a. Planner’s Report:  Planner Johnson stated that there would a Planning Commission meeting on October 20 and she reviewed the following information listed in her report dated October 4, 2022:

1.  300 Salem Church Road:  The Planner stated this item would be discussed later on the agenda.

2.  2184 Charlton Road:  This property owners have submitted a variance application to construct a new 3-stall garage on the property. The lot and all buildings on the lot are nonconforming since they were constructed prior to current ordinance requirements. The ordinance does allow for this project if the nonconfining structure is amended to increase the livability of the structure.  An on-site meeting is tentatively scheduled for 5:00 p.m. on October 20, the same night as the Planning meeting.  If this changes, all will be notified.

3.  11 Salem Lane:  This property was discussed at the September Council meeting with regard to demolition activities on the site.  Council expressed concerns and received complaints about the long grass and general appearance of the property at the meeting.  The contractor working on the demolition of the home was notified of the grass issue the day after the Council meeting.  The contractor advised that the homeowner would be taking care of the grass and general appearance of the site the following weekend. No further complaints regarding this site have been submitted.   The property owners need to submit info for demolition of the structure, therefore, the application is incomplete at this time.

Mayor O’Leary commented that the City has no control or permitting process for demolition of the building interior, however, the property owners are required to have a permit to demolish the building. He questioned why they can separate the inside from the outside of the structure.
Attorney Kuntz explained that it is basically a policy issue. He indicated that it may be a question of “what do we care if the door is closed, no one can see”.

Mayor O’Leary asked if the City could change the ordinance to include requiring permits for both inside and outside demolition. He asked the Planner to review the current ordinance to determine if a permit is required for inside demolition.

Planner Johnson explained that the property owners were not doing any structural demolition on the interior of the building.  She pointed out that it would be difficult to require permits for interior remodeling of homes.

4.  15 Sunnyside Lane:  The landscape contractor for the new home at this address submitted a revised plan that meets all site plan requirements for the stairs to the lake.  The applicants were told they could not work on the steps to the lake; however, they are now staking the area.  Staff advised that an on-site meeting is required before they proceed with work on this part of the project.

5.  75 Windy Hill Road:  Council, Planning Commission, and adjacent property owners of 75 Windy Hill Road have been notified of the minor site plan application submitted for this property. As of September 28, no concerns or negative comments were received, only those in support of the project.  If no negative comments or concerns are raised within the 7-day timeframe, staff will direct the applicant to apply for a building permit to construct a deck with a fire place feature on the property. 

6.  Ordinance Updates:  Mayor O’Leary and Planner Johnson met with John Mazzitello, a Councilemmber for the City of Mendota Heights to discuss how Mendota Heights is approaching its ordinance updates and to learn about issues and topics that the City plans to address through these updates.  Staff will continue to work with the Mayor on the updates and hopes to make a presentation to Council at a future meeting.

Council thanked the Planner for her report.

7.  ENGINEER’S REPORT:  1. Engineering Activities Undertaken in September:     A. Adoption of Dakota County Regional Roadway System Visioning Study:  Engineer Sandberg stated the final study was presented at the August Council meeting and the formal resolution was discussed and modified for Council approval this evening.

Mayor O’Leary asked if the Engineer wanted to adopt the resolution at this time or wait until later on the agenda and Engineer Sandberg stated it could be adopted at this time.

Councilmember Beckett moved to adopt Resolution No. 22-15 titled, Resolution Discussing The Regional Roadway System Visioning Study Update, seconded by Councilmember Hansen and carried. (3-0)

B.  No Solicitation Signage: The Engineer stated that he is working with the City Attorney on the signage language. 

2.  Building and Site review in the Month of September:  A. Staff conducted reviews for the following properties:

245 Salem Church Road:  Staff granted a request for a 10-day extension on the final inspections for the project and the property owners provided a large escrow payment.  The inspection is scheduled for next week.

15 Sunnyside Lane:  Staff reviewed and commented on an updated plan for the stairway to the lake.

75 Windy Hill Road:  Staff reviewed and commented on a proposal for a new deck and patio.

2184 Charlton Road:  Staff provided comments on a proposal to add a garage and a reconfigured driveway.

3.    Public Works Activities Undertaken in the Month of September:  None.

4.    Anticipated Engineering and Public Works Activities for October:   A. No Engineering/Public Works activities are anticipated in October.

Engineer Sandberg advised that he had corresponded with the City Forester regarding high weeds along Salem Church Road adjacent to the roadway.  He stated that two (2) residents had called to ask that the weeds be removed so there was a safe place to walk along the road. 

Forester Nayes explained that the mowing was supposed to take place last Saturday, however, the mowing company reported that they had a flat tire and were unable to mow the area.

Councilmember Hansen stated that she had driven by and the edge of the road was mowed today.

Council thanked the Engineer for his report.

8.  NEW/OTHER BUSINESS:  a. Consider Resolution Discussing The Regional Roadway System Visioning Study Update by Dakota County:  Mayor O’Leary stated this item was adopted earlier under the Engineer’s report.

b. Consider Resolution Approving Changes in the Permitted and Prohibited Hunt Dates with Respect to the Agreement with Metro Bowhunters and the Resident Volunteer Program for the Deer Hunting Season in 2022:   Mayor O’Leary asked if there were any questions or comments regarding the Deer Management program and there was no response.

Mayor O’Leary moved to adopt Resolution No. 22-16 titled, Resolution Approving Changes in the Permitted and Prohibited Hunt Dates with Respect to the Agreement with Metro Bowhunters and the Resident Volunteer Program for the Deer Hunting Season in 2022, seconded by Councilmember Hansen and carried. (3-0)

c.   Consider Resolution Appointing Election Judges for the November 8, 2022 General Election:   Mayor O’Leary asked if there were any questions or comments regarding the amended resolution that removed Councilmember Beckett’s name from the list of appointed election judges for the November 8, 2022 election and there was no response.

Mayor O’Leary moved to adopt Resolution No. 22-17 titled, Resolution appointing Election Judges for the November 8, 2022 General Election, seconded by Councilmember Beckett and carried. (3-0)

d. Discuss Escrow Negotiations at 300 Salem Church Road:  Mayor O’Leary explained that Councilmember Bulach had offered to discuss and negotiate the outstanding escrow balance for their property at 300 Salem Church Road.   He stated he was unsure if the negotiations had taken place since Councilmember Bulach was absent this evening.

The Mayor explained that he attends quarterly meetings with other mayors in Dakota County and that there was a discussion with the three (3) mayors from the cities adjacent to Sunfish Lake regarding possible solutions regarding collection of the outstanding escrow monies.  

Mayor O’Leary stated that all of the mayors explained that their cities file paperwork to place the disputed amounts on the property owners’ tax statements for collection.  He noted that the mayors advised this is also done when their cities have to take action to clean up properties by mowing lawns.  He commented that this puts the onus on the property owner to make the payment vs the city spending money to seek legal action against them.

The Mayor asked Treasurer Lanoue if there is a form that must be submitted to place the delinquent funds on the tax statement.

Treasurer Lanoue explained that there was a form to fill to levy the amount for mowing property and when snow had not been shoveled on a property, however, she was unsure what process must be followed for delinquent escrow monies.

Mayor O’Leary asked Attorney Kuntz to contact the City of Mendota Heights to discuss what procedure they use to collect the funds and he suggested that this be incorporated into practice in Sunfish Lake.

Councilmember Beckett asked if the City must provide a specific time limit for collection and payment.

Mayor O’Leary indicated that it appeared to be a defined process and the City Attorney would be able to ascertain the process after speaking with Mendota Heights.
Clerk Iago indicated that the City sends letters to collect False Alarms payments and there is a specific time period for collection of the monies.

Treasurer Lanoue commented that the City may also have to post a legal notice relating to the matter.

Mayor O’Leary asked the City Attorney to determine if a percentage could be added to the payment to cover any cost for publication.

Councilmember Hansen suggested that it may be appropriate to wait to hear from Councilmember Bulach prior to seeking action on this property.

Council agreed that they should wait for a report from Councilmember Bulach and directed Attorney Kuntz to contact the legal counsel in the neighboring communities regarding their procedures for collection of delinquent escrow funds.

Attorney Kuntz explained that he would be taking an extended vacation and asked that this matter be delayed until the December meeting.

Council concurred to place this matter on the December agenda.

Clerk Iago reported that the City Recycling Coordinator would be moving to Texas at the end of October and would work remotely until such time as her replacement is hired.  She invited Council to attend a small gathering at Mendota Heights City Hall on October 19, 2022 to wish her well. 

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

9.  ADJOURN:   Mayor O’Leary adjourned the meeting at 8:05 p.m.

____________________________                              ________________________________

Catherine Iago, City Clerk                                             Dan O’Leary, Mayor