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HomeMy WebLinkAboutDraft October 20, 2008 Minutes City Council Meeting Minutes October 20, 2008 DRAFT CALL TO ORDER Present were Mayor Haugen, Councilors Erickson, Hedberg and Millar, City Manager Boyles, City Attorney Girouard, Public Works Director/City Engineer Albrecht, Finance Director Teschner, Finance Director Erick- son, Community Development and Natural Resources Director Walthers, Economic Development Director Snook, Fire Chief Hartman, Assistant City Manager Meyer, Communications Coordinator Peterson and Administrative Assistant Green, Councilor LeMair was absent. PUBLIC FORUM The Public Forum is intended to afford the public an opportunity to address concerns to the City Council. The Public Forum will be no longer than 30 minutes in length. Speakers receive a maximum of ten minutes; less if there are more than three speakers. Topics of discussion are restricted to City governmental topics rather than private or political agendas, Topics on the agenda may be addressed except those topics that are part of a public hearing or public information hearing, The City Council will not take formal action on Public Forum presentations. City Manager Boyles explained the concept of the public forum. Comments: No person stepped forward to speak. APPROVAL OF AGENDA Councilor Erickson requested the addition of item 10C, rental properties licensing and inspection. City Manager Boyles requested removal of a presentation by Lyaman McPherson indicating it was intended for a November meeting; and requested that an update of the MGM Liquor vs. Dakota Liquors be added to the Executive Session, MOTION BY ERICKSON, SECONDED BY MILLAR TO APPROVE THE AGENDA AS MODIFIED. VOTE: Ayes by Haugen, Erickson, Hedberg and Millar. The motion carried. APPROVAL OF MEETING MINUTES MOTION BY MILLAR, SECONDED BY HEDBERG TO APPROVE THE OCTOBER 6, 2008, MEETING MINUTES AS PRESENTED, VOTE: Ayes by Haugen, Erickson, Hedberg and Millar, The motion carried. CONSENT AGENDA City Manager Boyles reviewed the items on the consent agenda. A. Consider Approval of Invoices to be Paid, B, Consider Approval of Treasurer's Report, C. Consider Approval of September and Third Quarter Building Permit Reports, D, Consider Approval of Animal Warden Report. E, Consider Approval of September and Third Quarter Fire Call Reports. F. Consider Approval of 2008 3rd Quarter Investment Report. G. Consider Approval of 2008 3rd Quarter Budget Summary Reports and General Fund Overview. www.cityofpriorlake.com Phone 952.447.9800 / Fax 952.447.4245 City Council Meeting Minutes October 20, 2008 DRAFT H, Consider Approval of Resolution 08-133 Authorizing the Purchase of SCADA, Office, Electrical, and Miscellaneous Equipment for the Water Treatment Facility. I. Consider Approval of Resolution 08-134 Designating Investment and Banking Authority on Behalf of the City of Prior lake. J. Consider Approval of Resolution 08-135 Authorizing the Purchase of One Falls Model 1811A Fixed Angle Under Body Blade for Tandem Dump Truck. Councilors requested that item 5B, Consider Approval of Treasurer's Report, a~d item SF, Consider Ap- proval of 2008 3rd Quarter Investment Report, be removed from the Consent Agenda. MOTION BY MillAR, SECONDED BY HEDBERG TO APPROVE THE CONSENT AGENDA AS MODIFIED. VOTE: Ayes by Haugen, Erickson, Hedberg and Millar. The motion carried. Erickson: Commented on media coverage about investments and banking noting that the City has many investments. Asked the Finance Director to comment on the City's investments, J. Erickson: Replied that the City is invested in a number of approved securities and listed the investment instruments that are approved by State Statute for municipalities. Explained where the City has invest- ments and what percentage of funds are in each type of investment. Noted that investments are insured by the Federal govemment. Hedberg: Stated he had wanted to open the investment report for discussion for the same purpose. MOTION BY HEDBERG, SECONDED BY HEDBERG TO APPROVE BOTH THE TREASURER'S REPORT AND THE 2008 3RD QUARTER INVESTMENT REPORT. VOTE: Ayes by Haugen, Erickson, Hedberg and Millar. The motion carried. PRESENTATION "State of the District" presentation by Dist. 719 Superintendent Dr. Sue Ann Gruver City Manager Boyles introduced District 719 Superintendent Gruver. Gruver spoke of current achieve- ment of students with the high school named one of top ten in the state for reading and science testing re- sults. Noted that the senior student's ACT scores continue to rise year after year. Gruver spoke of recent growth in student demographics of 3-5% each year causing crowding. Commented that District 719 is among the lowest in the metro area for administrative costs and spoke of budget cuts already made and efforts to keep such cuts away from the classroom. Described how monies would be used if the proposed levy is passed. District 719 Finance Director Margo Nash displayed the levy history of the School District and spoke of the general education fund formula, how general education aid monies are used and the av- erage tax burden associated with the proposed levy. Superintendent Gruver discussed the steps that would be taken if the levy fails. Comments: Haugen: Thanked them for the presentation. Read comments from the State of the City Address from February of 2008 that spoke of the challenge of passing the levy referendum in order to continue the vi- brancy of the community, Explained that the Council cannot take action on the levy that the School District is seeking, but complimented Gruver on her leadership in making presentations to various groups in the community so they are educated regarding the issues. Hedberg: Stated his family has lived in Prior lake since 1981 and attended the Prior lake-Savage school system. Has always been proud of the excellence of the school system, believes it is important for each voter to make an informed vote and is glad that this was a forum to get information out to them. 2 City Council Meeting Minutes October 20, 2008 DRAFT Millar: Commented that this is a challenging financial time. Congratulated the district and students for its top ten status in testing areas, Agreed it is important for voters to become educated about the levy issue. Youth Appreciation Week Proclamation. City Manager Boyles explained that the first week of November is Youth Appreciation Week and the Prior Lake Optimist's Club has requested such a proclamation. Mayor Haugen read the proclamation, Presentation to Ralph Teschner City Manager Boyles spoke of Finance Director Teschner's years of service and credited him for many of the good things that Prior Lake has become from a financial perspective, Stated Teschner has left the leg- acy of a financially strong community by building effective relationships and developing programs that al- lowed infrastructure to be built. Comments: Millar: Thanked Teschner for his help in learning the economic environment of the City when he was an incoming councilor. Wished him good luck. Hedberg: Commented that he learned as long-time resident that the City is in good financial shape with low debt, low taxes for the area and average taxes compared to the metro area and hitting budget num- bers. Stated that those measures are due to the consistency of Teschner's management. Thanked Teschner for his contributions. Erickson: Spoke of the respect evident at Teschner's retirement party and complimented Teschner for being frugal with the City's money. Haugen: Commented that Teschner has been a constant thread throughout the operations of the City for many years and it has been an honor to work with him, Presented an appreciation plaque to Teschner. Teschner: Stated it has been a long, challenging and rewarding run with the City and he feels assured that the existing professional, excellent staff and Council will continue the work. Appreciated the opportu- nity to work with the City. PUBLIC HEARING No public hearing was scheduled. OLD BUSINESS Consider Approval of a Resolution Authorizing the Purchase of Tools and Equipment by the Fire Department. City Manager Boyles described the tools and equipment requested and its need. Comments: Erickson: Will support. Commented on last week's dedication of Fire Station No.2 and thanked everyone who was involved the building committee that worked on its construction, Thanked Wensmann for donating the land for it. Noted the project came in approximately $500,000 under budget. Millar: Will support. Asked Fire Chief Hartman to explain the hose scrubbing equipment. Hartman: Distributed copies of the specifications. Noted that the hose scrubber currently in Fire Station No.1 is 30 years old and, therefore, it was determined that a new one should be purchased for Fire Station No.2 and that most of the hoses will be washed there using the hose drying tower. The old hose scrubber will continue to be used until it no longer works. Described how it works and why it is needed to remove contaminants which prolongs the life of the hoses and makes them safer to work with. Hedberg: Asked how much remains in the referendum fund. 3 City Council Meeting Minutes October 20, 2008 DRAFT Boyles: Replied that Change Order NO.3 is expected to come to the Council soon for approval and that the remaining amount in the fund is approximately $450,000. Hedberg: Affirmed that there is plenty of money in the referendum fund and recalled that the referendum called for funds to build the fire station, ladder truck and equipment. Pointed out that the Council recently approved the purchase of a rescue truck; and rather than using funds from the capital improvement plan, used referendum funds, Stated that the bids received and management of the funds allowed the City to build under budget so the truck and the equipment could be purchased. Will support, Haugen: Thanked the Fire Chief and firefighters for their ongoing efforts to protect life and property, Thanked attendees who came to the Fire Station No, 2 open house. Thanked voters who approved the referendum. Thanked Councilor Millar for his efforts on the building committee, MOTION BY ERICKSON, SECONDED BY MILLAR TO APPROVE RESOLUTION 08.136 AUTHORIZING THE PURCHASE OF TOOLS AND EQUIPMENT BY THE FIRE DEPARTMENT, VOTE: Ayes by Haugen, Erickson, Hedberg and Millar. The motion carried. NEW BUSINESS Consider Approval of a Resolution Acting Upon the Economic Development Advisory Committee Recommendation Regarding Scott County Community Development Agency (CDA) Response to Request for Proposals for Downtown Redevelopment. Economic Development Director Snook described the Request For Proposal process, the subsequent review of the proposal received and the recommendation of the EDAC to decline that proposal believing it does not meet the objectives of providing a mix of housing, a strong retail component or enough parking, Noted it would also create an inability of the City to use tax increment financing for other potential down- town development since the proposal was for public ownership. Explained that the EDAC recommends staff be directed to identify developers with similar goals and determine if they would be interested in future opportunities. Comments: Hedberg: Supports the resolution to deny the proposal. Noted the Scott County CDA put together a sound proposal that might be an ideal partnership at a different point in time, but it is the wrong match now, Believes residential ownership by the CDA would significantly reduce the probability of future desired de- velopment. Stated there is a large scale need over the next 25 years to support downtown development. Stated there is pressure to have more downtown parking and this proposal does not provide that. Believes the only mechanism to effectively finance a public parking structure would be tax increment financing and the ownership structure necessary for the CDA proposal would make that unavailable. Believes the Coun- cil should let the Scott County CDA know this is not the right fit at this time. Erickson: Stated the Scott County CDA just finished a new development in Savage, which he toured and found to be an excellent job. Has faith in them putting a good building together, but has concerns with this proposal because of the lack of parking and an anchor tenant. Noted that the CDA indicated they were not interested in doing the project until they had an anchor tenant and proposed that the decision could be ta- bled until an anchor tenant is found. Snook: Commented that the EDAC recommends declining this proposal and leaving the door open to working with the CDA in the future, Recalled that the CDA would not develop this proposed project until some anchor tenants were found. Walthers: Conversed with Jaffa, executive director of the CDA, and spoke about a number of scenarios including whether the Council would prefer to delay. Jaffa said he understood the economic climate and is amenable to having it put on hold for awhile. Erickson: Asked what the appropriate resolution would be if the Council chose to do that. 4 City Council Meeting Minutes October 20, 2008 DRAFT Boyles: Replied that no action would have to be taken as there is no termination date on the proposal. Erickson: Suggested tabling it and seeking other altematives. Millar: Believes this kind of development might have a place in downtown Prior Lake some day and might have a strong retail component noting that Lakefront Plaza is a testament to such development. Troubled with the parking issue as there is no answer for that in the proposal. Agrees that public ownership would encumber the City's ability to offer tax increment financing later. Also troubled that the rental units would draw on the lowest possible tax base permitted and is not sure that is best for the community at this time. Believes the time is wrong to endorse the proposal, but is willing to table it. Haugen: Expressed concern with the proposal as mentioned due to the lack of commitment to a strong retail component on the part of the developer as well as disagreements about parking issues. Believes a decision should be made noting that a new proposal could be considered by the CDA at a future time, Supports the EDAC recommendation. Hedberg: Reiterated his belief that this proposal should be declined. Noted that downtown development plans required the City to solve public infrastructure problems caused by the change coming to the Main Avenue / CR 21 and Arcadia Avenue / CR 21 intersections for vehicular and pedestrian movement. The transportation improvement plan was been made in order to show current businesses and potential devel- opers where the City is going with those changes. The second problem is parking and a study exists show- ing what will be needed. A solution to parking must come first because congestion is already here and a mechanism to solve that will signal to developers our readiness for development. Believes this proposal precludes the City's ability to solve the parking problem as there would be no mechanism to finance a park- ing structure because the tax structure for this proposed building would preclude the use of future tax in- crement financing and it would be impossible to finance a parking structure without it. Believes the parking structure needs to come early in the next stages of redevelopment of downtown. Erickson: Concurred with Hedberg's comments. MOTION BY HEDBERG, SECONDED BY MILLAR TO APPROVE RESOLUTION 08.137 ACTING UPON THE ECONOMIC DEVELOPMENT ADVISORY COMMITTEE RECOMMENDATION REGARDING SCOTT COUNTY COMMUNITY DEVELOPMENT AGENCY RESPONSE TO REQUEST FOR PROPOSALS FOR DOWNTOWN REDEVELOPMENT. Haugen: Clarified that the resolution included direction to staff, VOTE: Ayes by Haugen, Erickson, Hedberg and Millar. The motion carried. Consider Approval of a Resolution Updating the City of Prior lake Winter Maintenance Policy. Streets and Utilities Supervisor Eldred explained the updates to the Winter Maintenance Policy listing the trails and sidewalks that will be cleared of snow. Spoke of maintenance practices using new equip- ment, new technologies, products and blending of products, with the goals of reducing salt use and reduc- ing costs. Described the Blind Lake Research Project to track chloride movement and its effects on the watershed adding that research grants are being sought to fund the project. Comments: Millar: Thanked Eldred and staff for taking good care of the community stating it is good to be on the edge of new technology. Will support. Erickson: Commented that last year's report referred to special plowing on CR 21 for snowmobile usage and asked if there is anything different this year in conjunction with snowmobile trails. Albrecht: Replied that no changes are planned to last year's routes. The Snowmobile Club has not re- quested any changes. There will be a meeting of the group later this fall. 5 City Council Meeting Minutes October 20, 2008 DRAFT Erickson: Asked if cane molasses is intended as a replacement to GeoMelt@. Eldred: Replied that it would be used in conjunction with GeoMelt@ with the hope of using less of that product. Added that staff wants to make its own mixture and see if the same results can be achieved as with the old ClearLane@. Noted there will only be 1500 gallons of the molasses product and results will be shared with the grantor. Hedberg: Commented that streets were better to drive on last year. Stated the City is fortunate to have Eldred on staff and he is often asked to present on topics and to try new products. Eldred's efforts set the tone for best practices all over. Haugen: Concurred with previous comments and asked about the "street utility think tank." Eldred: Replied there are several people in the group who are into this project and they think of new things to do nearly weekly, Haugen: Commented that good things happen when people are passionate and clearly the crew has pas- sion and significant pride in what they do and how they do it. Eldred: Added that the department is always working to improve its rating on the residential surveys. Haugen: Suggested that the City keep communicating this information and the public will be intrigued by what is being done. MOTION BY HEDBERG, SECONDED BY MILLAR TO APPROVE RESOLUTION 08.138 UPDATING THE CITY OF PRIOR LAKE WINTER MAINTENANCE POLICY. VOTE: Ayes by Haugen, Erickson, Hedberg and Millar. The motion carried, Rental Properties Licensing and Inspection Councilor Erickson commented that a side effect of the recent real estate market will be that some single family homes will change from owner occupancy to rental property. Noted he owns rental properties in other cities and that other cities have annual inspections and a licensing fee that covers the cost of that inspection. The benefit of such licensure and inspection is that a landlord knows the building is up to code. Suggested that the police department could work with the landlords to conduct criminal background checks so the landlord can get information on potential renters and that such action could help protect the neighborhoods, Stated he would like to direct staff to look into the possibility of annual inspections, a fee to cover it and allowing background checks, Comments: Hedberg: Acknowledged that there will likely be more homes converted to rental properties and is in- trigued by the notion of learning what other cities do and what the alternatives might be. Believes that in- formation should be brought to the Council as a staff report. Millar: Will support this. Agrees there should be a criminal background check. Believes it is reasonable to expect people who rent properties to pay licensing fees as it would allows the City to check the properties and assure they are being maintained properly as well as inform landlords about any new codes. Added that such a program should pay for itself. Haugen: Agreed that the concept can serve a purpose, and should be cost neutral to cover staff time and police involvement. Suggested that it be directed to the Community Safety Advisory Committee for its re- view and let them determine its priority. Erickson: Stated it is not uncommon for cities to have such a fee and Prior Lake may be unique by not having it. Believes staff should research what other cities are doing, what staff time would be involved and what the City can offer for services before the topic goes to committee. Millar: Added that licensing is the cost of doing business. Believes it is an asset to have a city go into a property that is not being taken care of to force landlords to take care of the properties. Does not think it 6 City Council Meeting Minutes October 20, 2008 DRAFT has to go to the committee, it is just part of responsible government and looks out for the neighborhood and the City in general. Haugen: Commented that homeowners may move to renting their homes due to economic times and does not dispute that this could be beneficial, but noted there are all sorts of things that staff can be directed to do which costs money. This would add a financial burden and he is questioning where government inter- vention should start and end. Erickson: Responded that homes are being purchased at a low price by landlords in order for them to be rented rather than people converting their homes to a rental property. Haugen: Agreed. Erickson: Stated that people in that business are used to paying the cost of doing business and licensing is not unusual. Believes a component that is coming into play with foreclosures, etc., is that rental property is more available now in the outer ring of the metro area and renters are moving to the outer ring. Believes the City needs to protect its neighborhoods and licensure, inspections and background checks will help to do so, MOTION BY ERICKSON, SECONDED BY HEDBERG TO DIRECT STAFF TO LOOK AT OPTIONS AVAILABLE FOR RENTAL LICENSING FEES, SERVICES THE CITY CAN OFFER LANDLORDS TO INCLUDING ANNUAL INSPECTION AND THE ABILITY TO RESEARCH THE CRIMINAL RECORDS OF POTENTIAL RENTERS. Erickson: Noted that when a report comes back from staff, the Council can decide if it should go to com- mittee or be acted upon. Hedberg: Clarified that the process would be to have staff prepare a report after which Council could act on it or refer it to committee. Erickson: Agreed, Believes staff is more able to do the research to learn about services offered and fees charged. VOTE: Ayes by Haugen, Erickson, Hedberg and Millar. The motion carried, MOTION BY ERICKSON, SECONDED BY HEDBERG TO HAVE THE STAFF BRING THE AFOREMENTIONED REPORT TO THE COUNCIL WITHIN 60 DAYS. VOTE: Ayes by Haugen, Erickson, Hedberg and Millar. The motion carried. OTHER Community Events Millar: The annual Rotary Fireman's Appreciation Dinner will be on Thursday evening @ St. Michael's, Hedberg: The City has received notice that Mediacom will offer the Big Ten network beginning around November 1, The Farmer's Market is over for this year. Erickson: Prior Lake High School football is competing in playoffs. The Prior Lake Spring Lake Water- shed will meet tomorrow to present the status of the lakes. All Things Food will be at Shepherd of the Lake between 5-8 p.m. on Thursday, Haugen: Complimented City Manager Boyles for the success of conversations with Mediacom on the quality of service and the Big Ten Network believing it led to an earlier implementation of that service. Executive Session The meeting moved to Executive Session at 8:10 p.m. RECONVENE 7 City Council Meeting Minutes October 20,2008 DRAFT The meeting reconvened at 8:40 p,m. Mayor Haugen indicated that the Council gave direction to the City Attorney regarding continuing to work on resolution of the Toohey lawsuit and received an update on the Dakota Liquors lawsuit against MGM and its liquor license. ADJOURNMENT With no further comments from Council members, a motion to adjourn was made by Hedberg and sec- onded by Erickson. With all in favor, the meeting adjourned at 8:41 p.m. Frank Boyles, City Manager Charlotte Green, Administrative Asst. 8