City of Austin, Minnesota City Council Meetings, 3 Jul 2023

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From YouTube: City Council Meeting - 7/3/23

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City of Austin, MN

A

All right we'll call a meeting order. Please stand for the Pledge of Allegiance.

A

Welcome everyone Thomas. Could you please take the role mayor.

B

King president councilmember large Austin president council member postma president Baker ready to go Baskin Fisher President Kelly present. We have a quorum. Your honor.

A

Take time looking for a motion by number one adopting the agenda so moved. Second, all in favor.

C

A

Motion carries at number two is a motion improving the minutes from our June 20th 2023 meeting, so I'll move the second yep Tom I'm. Sorry, all in favor.

C

A

Aye opposed motion carries nothing under item number. Three item number four: is a motion for the consent agenda all moved. Second, all in favor.

C

A

Motion carries petitions and requests item number five is resolution approving of financing and development agreement for the first and third Apartments Thomas.

B

Mayor and Council, we have Susan here from Three Rivers, Community Action, also with us to hopefully answer any questions you might have, but we are at the point, after several months of negotiations and working with our Attorneys at Dorsey and Whitney, to draft the Redevelopment agreement related to the affordable housing complex that is set to go on the east side of the post office, including in that is a 615 000 loan at one percent from the city that's been set aside in the building.

B

Fine 300 000 Grant is in the building fund set aside 540 000 additional grant. That was from an old pip District that got decertified and with a statute change a couple years ago, allowed us to use it for affordable housing, and then I recently approved seventy five thousand dollar Grant to realign the existing storm water.

B

Additional contributions will come from the Hormel foundation for six hundred thousand dollars. More counties pledged two hundred and fifty thousand dollars, and then the HR is providing the land that was part of a targeted, Area Redevelopment again. This is a part of a 16 million dollar plus project for 40 units and there's many documents involved in this, for which uh Dorsey new Whitney just drafted a resolution that would authorize the mayor in the city recorder to sign all those documents. But basically those documents refer to all those grand dollars.

B

Noted above there was a somewhat of a snafu in that the statute: State Statute chained on the tax rate, the state tax rate for class 4D property. He used to be a 0.75 tax rate. Under this last legislation, it was reduced to 0.25, which means they'll pay. A third less taxes than I was proposed. The 615 000 loan at one percent was backed by those tax increments at point.

B

Seven: five percent, which means, if they're paying a third less increment, there's a good chance that that full 615 and one percent would not get paid back through tax increments. But we have a minimum assessment agreement and a minimum tax increment agreement payment agreement with three rivers that says whatever the shortfall is in the tax increments, because we're paying less. We will write you a check each year based on what that payment would have been. So the good news is we'll get the 615 000 at one percent back through that process.

B

Unfortunately, our Tiff plan had the potential for about a million two in total increments. If the valuation of the property went up well again that we could then use to capture, maybe this 300 000 Grant more money back on I'm telling you that probably won't happen, because the class rates being cut in a third won't pay us back anything above the six hundred and fifteen thousand dollars.

B

We never planned on getting any of that back, because it also was a requirement that it would also be needed that the valuation of the property goes up to percent each year, which isn't a given so again that class rate did throw a little monkey wrench into it, but we'd anticipated that potential item, because it had been in front of the state for the last couple years just this year, it got through so again I'll here to answer any questions like Susan also to come up.

B

Maybe talk to you about the groundbreaking and where they're at on the bids and all that, but I could certainly answer questions after she gets done representing.

A

Welcome Susan anything to add um assistant.

C

Happy to be here to speak on behalf of three rivers and the first and third Apartments development.

C

um Like Tom said: we've we've been through a lot of rounds of negotiation and it's you know, process to get this project uh to closing. We were funded by mhfa at the end of December, and so this is actually a pretty fast uh process in terms of these types of tax credit projects to get everything lined up all the ducks in a row to be able to get under construction this summer, so we're anticipating closing the week of the 17th.

C

We hope to break ground shortly thereafter, before the end of July so happy to answer any questions. That's.

A

Great counseling questions yeah.

D

I got a couple, quick ones um in the master agreement. It says that um you have to provide insurance, and maybe this is a question for Craig is providing proof of insurance, a material and affirmative Covenant. In this agreement, is it considered material, foreign.

E

First and foremost, these Agreements are all drafted by Dorsey and Whitney, so they're not studied or within my personal knowledge, on every every provision, but I would say that consistent with all other similar contracts like this we've entered into in the past, the requirement to provide insurance is a is a conditional requirement. So if, if it doesn't happen, that's a breach of the agreements. Is that what your question.

D

Yeah, are you in default? If you don't have adequate property insurance? Okay? Second, there's a in the master agreement. It says the that there you, um except as otherwise provided um borrower, may not seek through petition or other means to have the market value for the development property reduced, and then it references something else that says the owner shall have normal remedies available under the law to contest any estimate, any estimated Assessor's estimated value. What does that mean.

E

Well, that's a balancing of the minimum assessment agreement that sets a minimum value for the property that makes sure that whatever taxes that are coming off, the property are at least what we expect. If, for some reason, the the assessor decides that this property is all of a sudden skyrocketing in value. Well, above that they can produce their own uh appraisal.

D

So it just establishes the floor as the starting point got it. Thank you.

F

A

Else, Council great questions, great answers. Thank you. So, with that, looking for a resolution frame, number five I moved second time.

B

Council, member postma, hi Baker, you.

D

B

Fish here, hi pashusta I, Ellie, aye, council member large Austin aye resolution passes 6-0 your.

A

Honor very good and thank you Susan. We appreciate that and looking forward to the brown groundbreaking in July here, uh I am number six resolution approving the budget adjustment number four Tom.

B

The library is looking at I'm sorry I'm, watching this before the later on. This agenda is the item number eight, the approval of the labor Associates labor agreement with aao organization for 2023 through 2025, as you may recall, in the 2023 budget, since we didn't have all the contracts done, we put aside 700 000 in contingency to cover the potential increase in costs for health insurance wages and other benefits.

B

Now that we have this last agreement in place that hopefully Council will approve, we would like to reallocate that seven hundred thousand dollars out of contingency and into the different departments budgets for wages and benefits, so those are more accurate to what the expected outcomes are going to be.

B

The total estimated for all funds is 697, 000 again for which we set aside 700.. So one option is to allocate that 700 out to the different funds, including the sewer fund, that has its own user fees.

B

What we've proposed to do is to have each fund basically use their own fund balance to balance their budget, so the library fund, sewer user funds, storm water, Fund, Central Garage fund, an I.T fund- would use their own fund balance to use it to balance their budget, which means we need about 515 000 in the general fund of that 700 000 balance leaves about 185 000 left that we'd like to transfer to the risk management fund, because any potential PTSD settlements for health insurance are going to come out of that fund and, as the legislation has proven in the past, this could get very expensive if we ever do have any potential PTSD required payments.

B

So in essence, we want to use that full 700 000 up in those ways and then use the fund balance in each fund to balance their own budgets.

B

So basically, just moving Dollars around to uh show the what the expected effects of these contracts now will cost existence.

A

Counseling questions for Time lab number six, if not looking for resolution, so.

D

A

B

Council, member Postman, aye Baker, you bet Fisher I, pashusta, aye, Helly, aye, councilman, large Austin aye resolution pass is 6-0 honor.

A

Very good item: number: six I'm: sorry, seven approving budget adjustment number five time.

B

Library has been working on their improvement over at the facility and in working with our facility sector. Brian Mason have come up with a couple additional costs. They would like to use out of the fund balance of their Library fund, which includes LED lighting to the tune of 21 185 dollars and a camera. A security camera system upgrade for about twelve thousand eight hundred dollars. The LED lighting upgrade is expected to save them about four thousand dollars a year, but again, there's not much contingency left.

B

So we looked at using their existing fund balance and their fund balance agreed during the coveted years because they got their full tax levy, but didn't have the full Staffing Etc, so the bank account kind of went up so Julie Kleinfeld, the library director, has worked with their Library board and would like to use 28 28 000 upper fund balance to finish these two projects within the library system.

B

If console sale approves we do a budget amendment and then she would be able to contract at least two entities to do the lighting upgrade and the camera.

A

Yeah counseling questions item number, seven with a resolution. Please.

F

A

B

Time, council, member Postman aye Baker yep Fisher aye bashusta aye hilly, aye councilmember large Austin aye resolution passes 6-0. Thank.

A

You number Eight's resolution approving a labor contract with the Austin Associates Organization for years, 2023 to 2025. Great.

F

Thank you, mayor members. This is the last of our eight marketing groups, essentially consistent with many of the same terms of other bargaining groups. uh Years covering 2023 through 2025., be happy to answer any questions otherwise seek approval.

A

Thank you, Craig Council, any questions for Craig.

D

Motion to approve second.

A

B

Council, member Postman aye Baker yep Fisher aye bashusta aye, hilly, aye, councilmember, large Austin aye resolution passed the six area honor.

A

Thank you number Nine's resolution approving a maintenance agreement for Highway 105 with MnDOT Steven is.

G

A two-year agreement that we complete every other year, typically regarding maintenance and minor, patching and some snow removal that the city does on Highway 105 and then we get reimbursed for MnDOT. For this two-year biennium. The MnDOT is proposing a four and a half percent increase over previous years and we would recommend approval.

A

Counseling questions gotten more generous these two years.

A

All right look for resolution; I, remember 10, please! Second, I'm! Sorry, that was our item number nine, okay, Tom, council.

B

Member Postman aye Baker yep Fisher aye pashusta aye Helly aye councilmember at large Austin aye resolution passes I.

A

Have number 10's resolution approving flood Hazard mitigation grant for the wastewater treatment plant project Stephen one.

G

Of our last major projects for flood control is at the wastewater treatment plant. uh It's estimated at an eight million dollar total project cost and it's been working with the DNR to identify uh dollars available with the most recent bonding bill that was passed at some dollars, get allocated to the DNR.

G

We apply for Grants from the DNR, and then they allocate us the money in this case, we're looking at a four million dollar grant for the project which will cover fifty percent of the cost, and the construction would occur sometime during this next three year period when we're working at the treatment plant, we'll need to go through the process of finalizing plans, getting all bid out and everything along with that. But right now it's just a resolution indicating that we have the funds available for matching the four million dollar Grant.

G

So when you're back up our available funds would come from our local option sales tax to match this four million dollar grant for the wastewater treatment plant.

A

Excellent. Thank you resolution number 10. Please show moved.

F

A

B

Council member Postman, aye Baker, yes, Fisher, aye, bashusta, Haley.

C

B

Council, member at large Austin aye resolution passes 6-0 your honor.

A

Thanks Tom item number 11 is resolution: improving contracts for automated vehicle location services and Route, optimization with funding from 2023 contingency Stephen.

G

We talked about this at a recent work session and then went out and got final uh numbers product numbers from a couple. Different companies that we were working with estimates came in a little bit, lower I believe than what I presented at the work session, we're requesting: uh 26 406 dollars and 20 cents for Compass com and C2 logistics for Route, optimization and vehicle.

G

Locating this is just for our 11 plow trucks, 10 plow trucks that have plow routes, and then we will look to budget in the upcoming year, 2024 for some additional vehicle, locating for our sweepers and some other vehicles that we have that we believe will be well utilized. So with that we'd request this twenty six thousand four, oh six, twenty to come from contingency.

H

Even what was the remind me what the conservative cost savings estimate was on labor for this.

G

um We I think what we provided you for backup before was more based on time, so they estimate that we'll be able to cut time of snow plowing by about 10 percent. Okay, um then there's also material savings as well and equipment, maintenance, wear and tear. So there's other more difficult things. Soft costs that are hard to to put a number on.

H

Is there any summer advantages to it? Yeah.

G

That's where the sweeping will come into play when we budget that for 2024 we'll be able to monitor our sweepers uh Leaf Pickers in the fall uh patching so yeah we're looking at also trying to incorporate some summer monitoring and as well.

A

Thank you very good. Thank you. Look at the resolution. Item number 11., so moved. Second Tom council.

B

Member postma aye Baker good idea, Fisher all right.

A

As a resolution accepting the donations of the City of Austin, we have nine aeds being donated by Leona M and Harry B, Helmsley charitable trust via the University of Minnesota for the police department. With that looking for accepting those detonation, it's all moved here.

C

B

Council, member postma, aye Baker.

D

B

Aye Helly aye councilmember at large Austin aye resolution pass is six years.

A

Of motion adopting a policy for employee affiliation with outside entities if anybody needs any more from the backup, I can certainly asking answer your questions on that one. Otherwise, looking for a motion, I'm.

E

uh Wondering if we could table this to a workshop, I do have a lot of questions and I. Don't really want.

G

To get into it all right now.

A

There's a motion by councilmember Patrice to the table. Is there a second? Second uh all in favor.

F

A

That motion carries we'll table that thank you. I have number uh 14's resolution to clearing the property at 308, 12th, Ave, Southwest, hazardous structure. It's all moved second Tom.

B

Council member Postman aye Baker yep Fisher aye bashusta aye Helly, aye councilmember large Austin aye resolution passes six zero I.

A

Think I'm Number 15 is a series of motions, Grand planning and zoning department, the power to contract for the removal of junk and or legally stored vehicles at the following locations. 15A address is 909 Third, Avenue, Northwest, the green property, so.

E

A

Second, all in favor, aye opposed motion carries 15b address is 1011 4th Street Southeast, the nice Dell property so moved. Second, all in favor.

C

A

Opposed motion carries 15, C, 1200 4th Street Southeast, the Olson property, so I moved it's like I'm. All in favor, aye opposed motion carries I, have number 15. The last of these series is 15. D is address. 14 16, 7th, Ave, Northwest, the McFarland property, so I'm a second all in favor. All right closed commission carries on to Citizens addressing the council. I, don't see anybody unless Jason has something to say we're good. We don't have a honorary council member.

A

We have three in the queue one I've called twice: I have now no response yet so I might move on to the second one in the queue. um So those no comments, reports and recommendations. Craig. Is there anything all right, nothing, seedmaster, city, council: let's go with Laura.

C

H

Just thanks to everybody who's working hard on freedom, Fest I will see you out there.

A

D

A

Me Jeff I have nothing other than that, so probably nothing Choice, nothing.

F

A

On all right, happy fourth July to all of our uh citizens and Council, as well so with that'll, take.