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HomeMy WebLinkAbout04 - Draft May 4 Meeting Minutes 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 City Council Meeting Minutes May 4, 2009 DRAFT REGULAR COUNCIL MEETING MINUTES CALL TO ORDER Present were Mayor Haugen, Councilors Erickson, Hedberg, LeMair and Millar, City Manager Boyles, City Attorney Pace, Streets and Utilities Supervisor Eldred, Assistant City Engineer Poppler, Building and Transportation Services Director Kansier, Finance Director Erickson, Police Chief O'Rourke, Assistant City Manager Meyer, Communications Coordinator Peterson and Administrative Assistant Green. PUBLIC FORUM The Public Forum is intended to afford the public an opportunity to address concerns to the City Council on any subject that is of community interest, provides information required by the Council to complete its du- ties or is provided by agencies representing citizens of Prior Lake. The Public Forum will be no longer than 30 minutes in length and each speaker will have no more than ten minutes to speak. The City Council will not take formal action on Public Forum presentations. City Manager Boyles explained the concept of the public fforum. Comments: No person stepped forward to speak. APPROVAL OF AGENDA City Manager Boyles informed the Council that the petitioner requested that item 10A, Consider Approval of a Resolution Authorizing the Issuance of a Franchise to Integra Telecom for Cable Communication Ser- vices, be removed from agenda. Boyles also recommended that item 10B, Consider Approval of an Ordi- nance Amending Section 703 of the City Code to Include Specific No-Wake Zones and Clarify Speed Limits on Upper and Lower Prior Lake, be changed to Consent Agenda item 5J. MOTION BY MILLAR, SECONDED BY LEMAIR TO APPROVE THE AGENDA AS MODIFIED. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. APPROVAL OF MEETING MINUTES MOTION BY LEMAIR, SECONDED BY MILLAR TO APPROVE THE APRIL 20, 2009, MEETING MINUTES AS PRESENTED. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair 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 Resolution 09-067 Accepting Bids and Authorizing the Mayor and City Man- ager to Execute the City's Standardized Construction Contract for the 2009 Street Overlay Project 09-012. www.cityofpriorlake.com 1 Phone 952.447.9800 / Fax 952.447.4245 City Council Meeting Minutes May 4, 2009 DRAFT C. Consider Approval of Resolution 09.068 Appointing Jeff Phelan to the Technology / Communica- tions Advisory Committee. D. Consider Approval of Resolution 09.069 Authorizing the Mayor and City Manager to Enter Into an Agreement with Scott County for the Operation of the Local Laker Link Summer Circulator Service. E. Consider Approval of Resolution 09.070 Extending the Deadline for Submitting a Final Planned Unit Development Plan and Final Plat for Summit Preserve. F. Consider Approval of Resolution 09.071 Approving a Grant Request for the Edward G. Byrne Memorial Recovery Act Grant Through the Tri-city Tactical Team. G. Consider Approval of Resolution 09.072 Approving Purchase and Installation of Landscape Mate- rials and Irrigation System for the Water Treatment Facility Project. H. Consider Approval of Ordinance 109.03 Amending Section 307 of the Prior Lake City Code Re- lated to Outdoor Events on Main Avenue. I. Consider Approval of Resolution 09.073 Authorizing the Mayor and City Manager to Enter into a Permit Agreement for the 2009 Farmer's Market. J. Consider Approval of Ordinance 109.04 Amending Section 703 of the City Code to Include Spe- cific No-Wake Zones and Clarify Speed Limits on Upper and Lower Prior Lake. Councilor Erickson requested that item 5F, Consider Approval of Resolution 09.071 Approving a Grant Request for the Edward G. Byrne Memorial Recovery Act Grant Through the Tri-city Tactical Team, be re- moved from the Consent Agenda. MOTION BY HEDBERG, SECONDED BY MILLAR TO APPROVE THE CONSENT AGENDA AS MODIFIED. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. Erickson: Asked Boyles to highlight how the City can benefit from this grant. Boyles: Explained that the grant can be applied for by organizations listed on the Recovery Act JAG allo- cation list and that the Tri-City Tactical Team, of which Prior Lake is a member, is eligible to apply for the grant. Funds would be used to pay for two Emergency Medical Technicians and related equipment. There is no local match requirement nor any obligation to continue funding the positions after the expiration of the grant. MOTION BY HEDBERG, SECONDED BY ERICKSON TO APPROVE RESOLUTION 09.071 APPROVING A GRANT REQUEST FOR THE EDWARD G. BYRNE MEMORIAL RECOVERY ACT GRANT THROUGH THE TRI-CITY TACTICAL TEAM. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. PRESENTATION Police Officer's Memorial Day on May 15, 2009 and National Police Week City Manager Boyles commented that this is the first time the City of Prior Lake has recognized National Police Week. Mayor Haugen read a proclamation declaring May 10-16 as Police Week in Prior Lake and May 15 as Police Officer's Memorial Day. Police Chief O'Rourke accepted the proclamation on behalf of the Police Department. Darwin Busselman Day - May 5, 2009 Mayor Haugen read a proclamation declaring Tuesday, May 5, Darwin Busselman Day in the City of Prior Lake in acknowledgement of his contributions to the community as a baseball coach and his 500th win. 2 City Council Meeting Minutes May 4, 2009 DRAFT OLD BUSINESS Consider Approval of a Resolution Providing for the Issuance and Sale of $1,710,000 General Obli- gation Street Improvement Bonds, Series 2009A. Steve Mattson, Northland Securities, stated that the bond issue was structured to get into the market place at the end of April. Stated that Prior Lake State Bank accepted the bonds and the coupon rate will be 2.73%. Added that the City has retained its Aa3 Moody rating. Finance Director J. Erickson listed the projects for which the bond will be used. Comments: LeMair: Asked what the total savings will be. Mattson: Replied that the market rate of 3.03% was lowered to 2.73% which will save more than $30,000 over the life of the bond issue. Erickson: Commented that people paying the tax levy will be happy to hear the news. Millar: Stated Mattson had done a great job as usual and it is good when the bond issue can be kept local. Hedberg: Concurred with remarks about keeping it local. Haugen: Stated that only 24 cities in the State have an Aa3 bond rating and that the City is on the verge of Aa2 which is among the elite of Minnesota. Mattson: Stated that every time the City improves its rating, it means better interest rates. MOTION BY HEDBERG, SECONDED BY MILLAR TO APPROVE RESOLUTION 09-074 PROVIDING FOR THE ISSUANCE AND SALE OF $1,710,000 GENERAL OBLIGATION STREET IMPROVEMENT BONDS, SERIES 2009A, PLEDGING SPECIAL ASSESSMENTS FOR THE SECURITY THEREOF AND LEVYING A TAX FOR THE PAYMENT THEREOF. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. PUBLIC HEARING Board of Appeal and Equalization Hearing. City Manager Boyles commented that each year the Council sits as the Board of Appeals and Equaliza- tion rather than delegating that responsibility to the County. Explained that the Board provides citizens an opportunity to appeal their property's valuation and provide information that may change it. Explained the appeal can be made by proviQing a letter or appearing before the Board in person. Stated that this Board does not address property taxes, only valuation. Introduced Scott County Appraisers Mike Thompson, Terence Chacka and Ginger Johnson. Thompson provided a presentation about the appraisal process, general trends of valuations in the area and how a property owner can appeal their valuation. Erickson: Asked if the average 12% reduction in valuation referred to in the presentation is for the City or the County. Thompson: Replied it is for Prior Lake. Erickson: Asked what the reduction was for the County as a whole. Thompson: Replied that, generally, residential properties in the County dropped six to seven percent. LeMair: Commented he had believed that Prior Lake properties had held valuation levels better than most areas. Hedberg: Referred to the way appraisers use information about taxable estimated market value and actual sales to calculate the sales ratio to assure assessments are between 90% and 105% of the market. Stated that during the fourth quarter of 2007 (the beginning of the data period used for this year's valuation) when 3 City Council Meeting Minutes May 4, 2009 DRAFT foreclosures were peaking, there were few foreclosures in Prior Lake so there were few non-qualified sales and most sales were close to the estimated value. In first quarter of 2009, approximately half of the sales were short sales and foreclosure sales. Stated it seems as though the market fell out of the pricing in Prior Lake well after the foreclosures and not during this valuation period. Millar: Reiterated that the market value of property for this valuation period was from October 2007 through Sept 2008 so the last quarter of 2008 is not reflected in this valuation. Haugen: Clarified that this Board is not dealing with property values of today, but rather the above-defined time period. MOTION BY MILLAR, SECONDED BY HEDBERG TO OPEN THE PUBLIC HEARING. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried and the public hearing opened at 6:44 p.m. Comments: Jim Space: no PID listed, 1109 Quixote Ave No, Lakeland, MN, spoke regarding Lot 27 and 28 Sunfish Bay Add'n, stating that over the past four years there has been a 2000% increase in valuation. Stated the property is landlocked, there is a cloud on the title, and it will likely need soil correction as it was an old dump site. Believes the property should be valued as $10,000 as it was in 2006 rather than the current $235,000. Compared value to neighboring lots 30 and 31 which are valued at $27,000. David Haspell: PID 254060430,16955 Toronto SE, moved into Prior Lake in February and paid $45,000 for a foreclosed property. Stated it was appraised at $72,500 which he believes is reasonable. Taxable value was $93,000. Believes an amount between $45,000 and $93,000 would be a proper amount. Robert Peterson: PID 250470100, 14956 Pixie Point Circle, refinanced the property and the appraisal dur- ing that process came to $26,000 less than the County appraised it. His appraisal followed federal guide- lines and was used to determine how much could be borrowed. Believes the true value is his appraisal. Believes his perspective is not unique as many people are getting refinancing. Jeff Mader: PID 251410150, provided comparisons of other lakeshore homes in Prior Lake. Requested consideration of reduction of his valuation. Frank Muelken: representing PID 259240020 and 259240010, 5800 140th Street NE, learned that there is an additional category of classification since the first of year that applies to farmland that isn't farmed, which is what this property is. Would like consideration of that category being assigned to this property until it is developed. Mary Lindstrom: PID 251410350,3124 Linden Circle, has lived in her home for 35 years, expressed con- cern about getting taxed out of her home. Treeva James: PID 251410290, 3147 Linden Circle NW, asked about frequency of assessor visits. Does not recall anyone coming to her home and commented on a phone call with the assessor's office that con- firmed space in the home. Thompson: Encouraged people to set up appointment time with Johnson, who set up a table outside of the city council chambers, if they would like to have an assessment done. James: Queried how the valuation is done as her property's valuation was higher this year, but calculated to go down $8,000 in 2010. Thompson: Replied that values are based on existing information which is why the assessor likes to visit homes. Haugen: Asked about the phone call that James referred to confirming there were no changes in her home. Thompson: Replied that if there is no potential to increase square footage in a basement, and assessors have been out recently, there could have been a telephone interview. 4 City Council Meeting Minutes May 4,2009 DRAFT Gerry Hughes: PID 250310170,5724 Fairlawn Shores, stated that he has experienced some reductions in tax valuation, but wanted to comment that consideration should be given to lakeshore lots that are bluffs as they are less saleable. Harold Roberts: PID 250310120 and 250310111,5630 Fairlawn Shores, estimated market value has di- minished the last three years and assessments are not reducing. Believes the number of feet of lakeshore should be taken into account. Roger and Susie Ferguson: PID 259350100, 4500 Lords Street, PID, appealing assessed value based on estimated market value of $1,104,000. Noted there is an appeal on file for the previous year also. Owns an irregular lot, provided comparisons of ten properties. They have highest valued lot of all lake- shore properties sold since the beginning of 2007. Believes his lot value should be valued in the $500,000- $515,000 range rather than the current $620,000. Asked why a homeowner would want to have a current inspection. Thompson: Replied that it mayor may not be in the best interest of a property owner depending on what information the assessor finds. Assessors want to have accurate data before any value is suggested to the Board. Would want to inspect the property before comparing it to any sales. Ferguson: Asked if the tax burden is being shifted to homes that are not devalued as much if the general valuation for the County and its municipalities is lowered. Thompson: Replied that if a particular neighborhood is out of line, there is a shift based on the sales data the assessors have. Ferguson: Clarified his query to state that the burden of tax shifts when property is devalued around the County by five percent and the lakeshore is only devalued by one percent. Thompson: Agreed. Haugen: Reminded Ferguson that this hearing applies only to an approximate third of the property tax on his property. Ferguson: Requested consideration of basing his lot and home valuation based on the properties that are on his spreadsheet. Dean Sutliff: PID 251410340,3162 Linden Circle NW, since 2003 taxable value has increased $315,000 and no improvements were made during that time. Agreed with Ferguson comments about the tax shift going to lakeshore owners. Stated that when the County increases the valuation of properties, all of the taxing entities receive the benefit of the increased valuation. Believes lakeshore owners are taking the brunt of increases and the process seems unfair as lakeshore owners have to pay for most of the things that happen on the lake anyway. Jace Mickley: PID 251330210, Lots 5 and 6, 3124 Spring Lake Road, prior to 2007 these lots had a value of $1 ,500 and have since have gone up to $100,000. Stated they are unbuildable lots, no utilities, and have a 40 percent slope. Requested re-evaluation. Mike and Terri Pherson: PID 259360460,15538 Fish Point Road, oak wilt disease caused nine trees to be removed from their property denuding the property of mature trees. Requested an assessment based on loss of all mature trees on the property. Pat Spielman: PID 250260080,15305 Breezy Point Rd, house was built in 1950s and is a "tear-down" house. Due to reconstruction of TH 13, a natural run-off for stormwater is now gone and risk of flooding is greater. A lift station for sewage is located at the top of the hill and if it fails there is a risk of sewage back- ing up into the basement. A 2004 easement for utilities excludes the right of the public to use the easement for the roadway, but a subsequent lawsuit declared a turn-around located on Lot 16 be deemed dedicated to the public. Requested consideration of re-valuation. Michael Wright: PID 251240280,14300 Timothy Avenue, provided spreadsheet of properties considered to be comparable. Property was increased by 19% while comparable properties shown are much less. Current year reduction is only two percent and comparable properties were reduced ten percent resulting in 5 City Council Meeting Minutes May 4, 2009 DRAFT his property valuation being 25 to 40 percent higher than comparable properties. Homes which border commercial areas do not retain values and commercial zoning was just applied to property across the street from his. Believes commercial zoning proximity, general home price drops, and adjustments made to similar properties justify consideration of a reduced valuation. Asked assessor about the timing of the ap- peals process. Thompson: Replied that Wright can appeal to the County Board in June and can file in property tax court up until April 30 of next year for this year's value affecting taxes in 2010. Wright: Asked if his property can be appealed later in the year due to the change in comprehensive plan and the unfinished zoning of the affected property. Thompson: Replied that the valuation is as of January 2 and conditions existing at that time are what will be considered. Changes made after that date will be considered with the next valuation. Dan DeVos: PID 250450100,14301 Shady Beach Trail, lived here for 11 years and does not recall anyone coming to do assessment. Disagreed with amount of taxes his property incurs and came to find out how process works. Did not bring a lot of data, but asked how someone knows that property has been viewed. Stated that a building permit for a deck was granted and wondered if that would generate an assessor's visit. Thompson: Replied that the County will have record of the last time they were at the property and how measurements were taken, etc. DeVos can call in to get that information and if an inspection is desired, an appointment can be scheduled. Commented that the County usually spends December and January view- ing building permits and in the case of a deck, it was probably measured when no one was home. Jim McMahon: 17178 Adelmann St, has been a business owner in Deerfield for the past three years. His research shows some businesses in the same category have half the taxes. Stated that businesses less than ~ mile away are bigger with better access and visibility and have less valuation. Stated he also has property that the City uses for walkway and a pond and does not know if he is being taxed for that. Chacka: Stated he will set up an inspection to view the property and answer concerns. Brad Rothnen: PID 254600020, 254400030, 254280020, 254270120, 254270110 and 254270060, Cen- tral Development, lives at 2011 Lakeview Drive, Jordan, stated he came to this appeals hearing to repre- sent the aforementioned PIDs as well as PID 254270050 and 254270090 owned by Mesenbrink Construc- tion at 7765 175th Street E, Prior Lake. Stated he wants to develop six lots, believes taxes are too high. Chacka: Stated that an appointment has been made with Mesenbrink Construction. Konrad Gastony: PID 254270030, 5821 Industrial Lane SE, stated he received an increase of ten per- cent from the previous year and is asking for further evaluation to assure it is fair and reasonable. Believes there were only three sales, and only one of them was an office building. Wants to develop business in the community but it is hard to carry that kind of burden. Judy Faust: PID 251410080,3133 Butternut Circle, commented that lakeshore was assessed on quality of the lot as well as the frontage. Stated she has less that 50 feet of lakeshore and believes larger lots are not taxed incrementally higher. Has contacted local appraiser to provide more evidence supporting the valua- tion she believes her property should be. Questioned the amount of square footage shown by the County. Asked for documentation of how land value could increase from $295,000 to $440,000 and what it is based on. Seems if valuation was done two years ago when values were higher, the correction to that should be done more quickly. John Moehring: PID 254020820, 4937 Bluff Heights Trail, assessed value was same for 2010 as for 2009. Questioned why his property would not receive a valuation decrease if the average is 12 percent. Knows of properties in his townhome development that sold for $20,000 less than his is valued at. Char Jasan: PID 250710050, 13320 Edgewater Circle NE and PID 254370100,14250 Parkview Lane, researched homes that are similar to lakeshore property. Believes both homes are overvalued based on no changes being made to the homes and comparable values. 6 City Council Meeting Minutes May 4, 2009 DRAFT Joel Culpepper: PID 253440040, 15263 Wilds Parkway, has the smallest house in the neighborhood and an identical house sold for $285,000. He paid $299,000 and it is valued an $412,000. Asked for reas- sessment. Wayne Baumgart: PID 252970180, 2966 Fox Hollow, asked for consideration of a professional appraisal that has been done by Prior Lake State Bank on his property. Happy Hollow representative: PID 259360120, 15870 Franklin Trail, asked assessors to review the build- ing and offered to provide financials. Brad Rixmann: 14488 Shady Beach Trail, spoke on behalf of parents living at 15311 Breezy Point Road who have filed a petition to appeal valuation. Also submitted documentation for John Bossardt, PID 250260070, 15329 Breezy Point Road, that based on comparable properties, it appears market value would be mid $700,000. Bossardt requested opportunity to meet with representatives from the County. Rixmann's property is at 14291 Shady Beach Trail, PID 250450090, purchased with intent to tear down and build a new house. Main part of the house was a cabin built in the 1950s with an addition in the early 1960s. The house has asbestos, a fuel oil tank to remove, old windows, poor insulation and mold. Value is only in the land. Requested that it be visited by assessors. Vickey Kent: PID 252990280, 5883 Cardinal Ridge Trail SE, feels valuation is high and asked assessors office to reconsider it. Charles Menking: PID 251410540,16119 Northwood Road NW, owns bluff property and believes it has limited access (from the lake) thus the value is less. Stated County information on square footage is incor- rect. Believes the assessor has too much power. Wayne Hoffman: PID 254430030, 17182 Adelmann Street, commented on differences in taxable amounts within Deerfield Industrial Park stating his valuation increased 22% last year and wondered about the dif- ferences between properties. Stated the building is 18,000 sq. ft. and the three businesses housed there pay $45,000 in property taxes. Would like to appeal. Jerry Young: PID 250400220, 5465 Shore Trail, has lakeshore property with 55 feet of frontage, recog- nizes that over past few years there has been an attempt to bring lakeshore values up. Believes that lake- shore properties had been below market, but his property value has increased between 15-26% every year and this year it increased $35,000, another 8%. Believes lakeshore owners are a "chosen" class for in- creases and believes that assessments should not go up again. David Meyers: PID 250400260,5515 Shore Trail NE, has owned lot with 125 feet of lakeshore since 1971. Had a 16% increase last year and 12.4% this year. In January 2009 an appraisal was done, which was $100,000 less than the County assessment. A survey was done last fall which showed property was 125 feet, County shows 130 feet. Wants correction and to appeal the assessed value. Katherine Space: PID 250960290, 16094 Eagle Creek Avenue SE, lived at property for 31 years. Esti- mated market value increased 26% from 2008 to 2009. Sales values are down 10-20% and believes 2010 valuation should show dramatic decline. Stated the adjacent lot is an identical 75 feet of lakeshore and is valued $10,000 less and a property two lots over is valued $100,000 less. Ken Boyles: PID 253480010,15358 Breezy Point Road, offered recommendations about the process stating that only 25 sold lakeshore properties were used for comparison by the County, which is only two percent of lakeshore lots in Prior Lake. Suggested: 1) when only a small sample is used the assessors should visit open houses of houses that are for sale and make their own assessment of the house; 2) at- tempt to get the bank appraisals that were done when financing was sought for the sold homes; and 3) interview the sellers. Believes there should be a documented process with clear, objective guidelines about how assessments are arrived at to allow for more objectivity in valuations. Thinks his property is too high compared to neighbor and wants to appeal. 7 City Council Meeting Minutes May 4, 2009 DRAFT Kelly Brooks: PID 251080030,3564 Willow Beach Street, valuation has increased 20% over the last two years. Her property has lake access, but it seems as if it is being valued as lakeshore. Wants to appeal. Village Commerce LLC: PID 254560010, 4719 Park Nicollet Avenue SE, submitted a letter appealing val- uation of the Village Commerce Building. Elmer Clarke: PID 250270250,250270240,250270230, 16280 Park Avenue SE, submitted a letter ap- pealing valuation of the property stating the property has been designated non-conforming and is land- locked due to incorrect placement of the road. MOTION BY MILLAR, SECONDED BY LEMAIR TO CLOSE THE PUBLIC HEARING VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried and the public hearing closed at 8:27 p.m. Comments: LeMair: Thanked all for coming and expressed appreciation of the way they presented their cases. Look forward to hearing from assessors. Hedberg: Commented that the length of the process is two-and-a-half years. Understands that the reason for that is to allow people the chance to appeal their valuation, provide input into the budgets that are de- veloped for the County, schools and municipalities and, finally, even to appeal their taxes. The process is long to provide for public input. Many comments today had to do with appraisals that are more recent than the timeframe that is used for this current valuation period. A number of people appealing today were lake- shore owners. Lakeshore values appreciated greatly in the 1990s and assessors couldn't keep up; at- tempts are being made now to bring those values into line. Millar: Thanked those who came, were informed and respectful. Understands the frustration of looking at the market today and dealing with valuations that were made when properties may have been at their peak. Mentioned that assessors are operating under State laws and acting in accordance with those guidelines. Expressed concerns about the Deerfield Industrial Park businesses. Erickson: Agreed with concerns about whether valuations are correct in Deerfield as well as the bluff ar- eas. Complimented Scott County representatives on their preparation and professionalism. Haugen: Commented that in past years a number of properties were under assessed and next year a number of those properties will even out. The County made efforts this year to assess commercial proper- ties to bring them into alignment. County assessors will come to the May 18, 2009, Council meeting with a report showing any changes they want to recommend. OTHER Community Events Millar: Reminded residents to apply for a golf cart permit in order to drive on city streets. Erickson: The Farmer's Market begins on Saturday, May 9. Haugen: May 15 is the first Friday Night Roll-In. Congratulated Coach Busselman on his 500th victory. ADJOURNMENT With no further comments from Council members, a motion to adjourn was made by LeMair and seconded by Hedberg. With all in favor, the meeting adjourned at 8:40 p.m. Frank Boyles, City Manager Charlotte Green, Administrative Asst. 8