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HomeMy WebLinkAboutDraft February 1, 2010 Meeting Minutes 00. ~ -PRlo~" ~ ("\ f.., ';P u ~ .~ 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 City Council Meeting Minutes February 1, 2010 DRAFT REGULAR COUNCIL MEETING MINUTES CALL TO ORDER The meeting was called to order at 6:00 pm. Present were Mayor Myser, Councilmembers Erickson, Hed- berg, Keeney and Millar, City Manager Boyles, City Attorney Pace, Public Works Director/City Engineer Albrecht, Assistant City Engineer Poppler, Finance Director Erickson, Building and Transit Services Direc- tor Kansier, Code Enforcement Officer Corrow, Fire Chief Hartman, Police Chief O'Rourke Assistant City Manager Meyer and Administrative Assistant Green. PUBLIC FORUM The Public Forum is intended to afford the public an opportunity to address concerns to the City Council. It will be no longer than 30 minutes in length and each presenter will have no more than ten (10) minutes to speak. Items to be considered on the agenda may be addressed at the Public Forum unless they have been or will be the subject of a public hearing or public information hearing at the City Council, the Eco- nomic Development Authority (EDA), the Planning Commission, or any other City Advisory Committee within the foreseeable future. Forum items are also restricted to City governmental topics rather than as a platform for private agendas. Matters that are the subject of pending litigation are not appropriate for the Public Forum. The City Council will not take formal action on Public Forum presentations. City Manager Boyles explained the concept of the Public Forum. Comments: Bryce Huemoeller, stated he is an attorney and appearing at the forum at the request of residents from the Bluffs of Northwood Meadows subdivision. Stated that when the residents bought lots they were told there would be covenants to regulate size and architecture of the homes in the subdivision. They have since learned that the developer did not file covenants until July 2009 and those filed were inconsistent with the covenants shown to homeowners at the time of purchase. Stated that within a month of filing the cove- nants, an agreement was signed with the lender for a foreclosure agreement, and in January 2010, another set of covenants was filed. Believes that a foreclosure may have negated the original agreement and also believes that the lesser covenants will devalue the existing homes in the development thus creating a hard- ship for the residents. Requested assistance from city staff in going through PUD documents to see the extent of requirements the city may have imposed upon the developer to maintain minimum sizes and to see whether the lender is obligated to comply with the standards the developer represented. David Lund, 16057 Tahinka Place NW, reiterated the request for help to see what options there are to pro- tect the neighborhood and keep it as the homeowners believed it should be. Pace: Commented that this subdivision had problems early in development and the City worked with them to try to prevent a foreclosure and to assure that infrastructure was completed. Noted that the City cannot enforce covenants relating to private property and that the issue is a civil matter. Hedberg: Noted that the original planning and proposal occurred several years ago. Stated that he would support having staff assist in reviewing documents to see if the developer complied with all elements of the PUD. Erickson: Suggested that a subsequent agenda item is about Northwood Meadows and it explains how the City assures that developer funds are used to place utilities. Questioned whether enough lots have been sold in the development to have the association turned over to the residents or whether the developer is still the association. Wondered whether covenants were presented when the Planning Commission and City Council approved the PUD. www.cityofpriorlake.com 1 Phone 952.447.9800 / Fax 952.447.4245 City Council Meeting Minutes February 1, 2010 DRAFT Keeney: Stated he would like to know the difference between what residents believe was promised and what is really documented. Myser: Supports a document review and having staff assist in providing information to the residents. MOTION BY ERICKSON, SECONDED BY MILLAR TO DIRECT STAFF TO PROVIDE ASSISTANCE IN REVIEWING THE REQUIREMENTS ESTABLISHED IN THE DEVELOPERS AGREEMENT FOR THE BLUFFS OF NORTHWOOD MEADOWS PLANNED UNIT DEVELOPMENT REGARDING MINIMUM SIZES AND WHETHER THE LENDER IS OBLIGATED TO COMPLY WITH THOSE STANDARDS. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Millar. The motion carried. APPROVAL OF AGENDA MOTION BY HEDBERG, SECONDED BY MILLAR TO APPROVE THE AGENDA AS PRESENTED. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Millar. The motion carried. APPROVAL OF MEETING MINUTES MOTION BY MILLAR, SECONDED BY ERICKSON TO APPROVE THE JANUARY 19, 2010, MEETING MINUTES AS PRESENTED. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney 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. 2009 4th Quarter Investment Report. C. Consider Approval of Resolution 10.005 Authorizing the Execution of the 2010 Joint Powers Agree- ment (JPA) for Street Maintenance. D. Consider Approval of Resolution #10.010 Accepting the Improvements for Shepherd's Path, Resolu. tion #10.011 Accepting the Improvements for Stonebriar, Resolution #10.012 Accepting the Im- provements for Hickory Shores and Resolution #10.013 Accepting the Improvements for the Villas of Northwood Meadows Developments. Councilor Erickson requested removal of Item 5D for discussion. Councilor Hedberg requested removal of Item 5B for presentation by the Finance Director. MOTION BY ERICKSON, SECONDED BY MILLAR TO APPROVE THE CONSENT AGENDA AS MODIFIED. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Millar. The motion carried. 2009 4th Quarter Investment Report. Finance Director Erickson spoke of current investments and explained that year-end tax levy revenues were just received. Spoke of interest revenues from investments and explained parameters of the City's investment policy describing the kinds of investments the City is allowed to use. Hedberg: Asked the average interest rate the City is paying on bonded debt. J. Erickson: Replied it ranges from 2% - 5%. Debt is typically for ten years and some facility bonds are longer. Myser: Asked how secure the financial institutions are where the City has placed Certificates of Deposit and the amount invested with each. 2 City Council Meeting Minutes February 1, 2010 DRAFT J. Erickson: Replied that each CD is insured by the FDIC and is within the $250,000 coverage limit. The FDIC $250,000 coverage limit is set to expire in 2013 and all CDs are set to expire within that time frame. Consider Approval of Resolution #10.010 Accepting the Improvements for Shepherd's Path, Reso. lution #10.011 Accepting the Improvements for Stonebriar, Resolution #10.012 Accepting the 1m. provements for Hickory Shores and Resolution #10.013 Accepting the Improvements for the Villas of Northwood Meadows Developments. Erickson: Commented that this agenda item is regarding the escrows held for certain developments to assure that improvements would be finished. Albrecht: Described each of the escrows that were set aside and the work that has been completed in order to release the escrows. Noted that tonight's agenda item is for the Villas of Northwood Meadows and the residents who addressed the Council during the Public Forum are referring to the Bluffs of Northwood Meadows. Explained that Council acceptance of the public improvements means that the City accepts ownership of them and such formal acceptance is a required step in the development agreements. Erickson: Asked about the portion of Northwood Meadows built by Manley and the problems with the bank that issued the letter of credit. Albrecht: Responded that the City worked out a supplemental agreement to guarantee completion of im- provements. MOTION MILLAR, SECONDED BY HEDBERG TO APPROVE RESOLUTION 10.005 AUTHORIZING THE EXECUTION OF THE 2010 JOINT POWERS AGREEMENT (JPA) FOR STREET MAINTENANCE; AND RESOLUTION #10.010 ACCEPTING THE IMPROVEMENTS FOR SHEPHERD'S PATH, RESOLUTION #10.011 ACCEPTING THE IMPROVEMENTS FOR STONEBRIAR, RESOLUTION #10.012 ACCEPTING THE IMPROVEMENTS FOR HICKORY SHORES AND RESOLUTION #10.013 ACCEPTING THE IMPROVEMENTS FOR THE VILLAS OF NORTHWOOD MEADOWS DEVELOPMENTS. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Millar. The motion carried. PRESENTATION Introduction of Fire Chief Hartman City Manager Boyles commented that Doug Hartman served as the volunteer fire chief for a number of years and is now appointed as the City of Prior Lake's full-time fire chief. Fire Chief Hartman provided a history of his own experience and training for the position. Described the objectives of the position and spoke of activities already underway. Comments: Erickson: Asked how Hartman will approach the increased inspections. Hartman: Replied that he will have time to follow up on alarm problems, questions and complaints from residents, etc., and will also be seeking feedback from the Council on whether they have particular direc- tives. Keeney: Thanked Hartman for his years of service as a volunteer firefighter and fire chief expressing ap- preciation for the Fire Department's excellent service. Millar: Congratulated Hartman on the position and asked what approach will be used for commercial prop- erties. Hartman: Replied he will develop a plan to train on how to respond to incidences at commercial busi- nesses based on learning such things as whether a business has hazardous materials, what type of busi- ness occurs at a site, etc. 3 City Council Meeting Minutes February 1, 2010 DRAFT Hedberg: Commented that the position of a fire chief was added into the budget about 1 % years ago as it made sense with a second fire station. Having two stations, valuable equipment and the contracts with the townships to provide fire and ambulance services supports the necessity of having a full time Fire Chief.. Commented that he will be interested in future reports about progress made with the Shakopee Mdewakan- ton Sioux Community and the townships as they are important partners and customers. Myser: Thanked Hartman for 20 years of service and his dedication to making the community safe and congratulated him on moving to the full-time position. Asked whether he will work with the State Fire Mar- shall on an inspection program. Hartman: Affirmed noting the State office is already used for researching fire scenes. The State Internet site is used to gather general information and that office will be used more in the future. Fire Helmets - VFW, Dave Roseth Fire Chief Hartman introduced VFW Commander Roseth and Donations Officer Dresen. Stated that the VFW donated 11 fire helmets valued at $1,976.00 to the Fire Department. Listed some of the many dona- tions the VFW has made to the City adding that the VFW has been an active partner in the Fire Depart- ment's annual BBQ fund raiser. Millar: Thanked the VFW for all their contributions to the community noting Memorial Park as well as dona- tions to other civic organizations. Keeney: Commented he has attended the annual BBQ and it is a big event in Prior Lake. Thanked the VFW for its donation of fire helmets. Erickson: Concurred with previous comments adding that contributions have also been made to school organizations and scouting. Hedberg: Commented that the VFW is an important and proud institution in Prior Lake and many organi- zations would not be what they are today without the contributions of the VFW. Myser: Thanked the VFW for all of their years of service and donations made to the Fire Department. Roseth: Responded that the VFW considers itself as being here to serve and help. Consider Approval of a Report on 2009 Code Enforcement Activity Code Enforcement Officer Corrow described the code enforcement program noting that it is proactive and does not wait for complaints before taking action. Spoke of the education components of the program and described common violations. Described the citation procedure and the challenges of enforcing the program. Provided statistics of code enforcement activity. Comments: Hedberg: Noted that citations were made to Scott County Courts seven times this year and asked what proportion of people seems contentious. Corrow: Replied he has found that people generally have pride in community and usually violations are due to lack of knowledge of the code. The few who are a problem make up about 90% of his work. Be- lieves those properties will relapse into further violations. Hedberg: Glad to hear that most people want to be proud of the place that they live. Thanked Corrow for his efforts. Erickson: Believes that having people aware of requirements is resulting in fewer violations. Asked if there is code regarding storage of RVs. Corrow: Replied there is code that addresses where a recreational vehicle can be parked and stored. Erickson: Asked what the City's response would be if an RV were used year-around and asked if the RV must be parked on the owner's property. 4 City Council Meeting Minutes February 1, 2010 DRAFT Corrow: Replied procedure would seek proof of ownership and to learn if the owner is living on site. Year- around use of a recreational vehicle is not described in the Code. Millar: Asked about how the property maintenance ordinance is working. Corrow: Replied that it addresses property appearance and is a helpful tool creating more options for en- forcement than were available in prior years. Keeney: Asked if the animal control complaints reflect the same calls as those shown by the animal con- trol vendor or if they are separate. Corrow: Replied they are separate complaints. Keeney: Asked if residents push back or offer suggestions on ordinance relating to recreational activities such as parking recreational vehicles. Corrow: Replied that Prior Lake is a leader in that area due to more recreational vehicles than most cities. Kansier: Acknowledged that there is push back, but stated the City has liberal ordinance compared to other cities. Believes the ordinance is a balance between complaints and the owners of the recreational vehicles and it tries to address the seasonal uses of the vehicles rather than lump everything together. Keeney: Asked if complaints are received in areas that are not addressed in the ordinance. Corrow: Believes the ordinance is pretty thorough. Myser: Asked if the long grass violations are primarily from residents. Corrow: Replied there are recurring violators that he might go back to three or four times per year, but the majority of such violations are about undeveloped lots. Myser: Asked about the percentage of repeat offenders. Corrow: Believes that to be less than 10% of the complaints. The citations written this year were all re- peat offenders. Myser: Asked if the number of violations might be less in the future. Corrow: Replied that reduction of violations is trying to be addressed with education. Explained that he responds to all emails and phone calls so resident's questions can be answered, but he does notice new violations every day so does not expect to see an end to them. MOTION BY KEENEY, SECONDED BY ERICKSON TO ACCEPT THE CODE ENFORCEMENT REPORT. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Millar. The motion carried. Summer Recreation Overview Recreation Coordinator Barstad provided information about 2009 recreation programs and updated the Council on 2010 program planning. Barstad provided statistics of attendance, efforts to control costs to keep programs affordable, and partnerships with the Library and Community Education to provide activities. Comments: Keeney: Just a reminder that March 1 is the beginning of registration for summer programs. Thanked them for all the programs offered. Erickson: Commented that it was a good turnout at the Winter Blast last week with pony rides and marsh- mallows big hits. Asked whether skates or sleds could be rented at Lakefront. Barstad: Replied they have not discovered a big market for that. Erickson: Asked if the City publicizes that Dakotah! has open skating and skate rentals. Barstad: Replied that they try to encourage use of the park, but noted that as weather becomes warmer, staff directs people to Dakotah! for skating. Erickson: Asked about family camp night in Lakefront Park. Barstad: Replied it will be an overnight event on July 30 for a $35 per family fee that includes everything but the tent. People can register with either the City or the School District. Erickson: Asked if the fire safety camp is open to residents of townships. 5 City Council Meeting Minutes February 1, 2010 DRAFT Barstad: Replied that all programs are open to everyone and explained that non-resident fees are not charged for the fire safety camp. Erickson: Asked about the garden plots. Barstad: Replied that registration for plots is being advertised. Erickson: Asked about the FIN program for fishing in Little Prior. Barstad: Responded that the program is in cooperation with the Department of Natural Resources which stocks Little Prior with fish. Hedberg: Amazed at how much is accomplished with the staff and funds of the recreation program. Thanked the department for the active involvement that is encouraged with these programs. Asked how a neighborhood can get on the list for a Park Party. Barstad: Replied that two would be held per evening and the department will select neighborhood parks on opposite sides of the City. Twelve will be scheduled this summer in parks that do not have any other programming held at them. Hedberg: Appreciates neighborhood events to get people together. Millar: Asked how many volunteers are used. Barstad: Replied that there are few volunteer opportunities adding that many programs have to be run by City staff due to liability issues. Millar: Stated that Teen Night is an important program as there are a lot of kids that have no activity to go to after school. Asked about the overnight camping program at Lakefront Park. Barstad: Described the area for tents and stated that the Pavilion will be open. Millar: Expressed regret that there won't be as many Concerts in the Park this year. Commented that the recreation programs are important part of activities in the community. Myser: Asked if the ski instructor volunteers use of his boat. Barstad: Replied that the ski instructor is paid; but, for example, the tennis instructor is a volunteer. Myser: Asked if there are opportunities to expand programming and become the "winter carnival" south of the river to attract tourists into the city. Barstad: Replied she has spoken with the Chamber about combining the Winter Blast with their Ice Golf event. Added she is trying to collaborate, get sponsors, and think of resources to showcase the City. Presentation on Marschall Road Transit Station Building and Transit Services Director Kansier provided a brief background of the closure of the Denny Hecker auto sales site and the discussion of that site for a park-and-ride. Stated that the site is consistent with the Unified Transit Management Plan (UTMP). Noted that Scott County Representative Marshall was in attendance and introduced Scott County representatives Assistant County Administrator Vermillion, Transportation Program Manager Friese and Transit Manager Beam. Vermillion commented that both the Metropolitan Council and the Minnesota Department of Transportation believe this to be a favorable site, and that the purpose of tonight's presentation is to learn if the City is in- terested in talking about being a potential partner. Friese gave a PowerPoint presentation on the key elements of the UTMP agreement that was adopted in 2005. She then identified the elements of successful park and rides including high speed service to major destinations, high service levels, proximity to limited access roadways, etc. Provided information that sup- ports the need for future transit stations in Scott County including the number of residents that are commut- ing and where they are commuting to. Spoke of partnerships that allowed building of South bridge Crossing and Eagle Creek Transit Stations and associated funding and. provided ridership numbers. Presented the site selection and design criteria the Metropolitan Council uses for transit stations noting that the Denny Hecker site is consistent with most of the criteria. Described the property, its location, existing building 6 City Council Meeting Minutes February 1, 2010 DRAFT amenities and that it has 474 parking spaces. Indicated the property has been vacant for over a year. De- scribed the concept of the proposed transit station; including indoor fleet storage, dispatch center and ad- ministrative offices, light fleet servicing, lobby area and the ability to add a bus ramp directly onto 169. Ex- plained that Scott County has committed $1.1 million to the project; Shakopee indicated they wanted to move forward with discussion; the Met Council concurs this is a good site and suggested funding options; and MnDOT indicated the location would be eligible for solicitation of funds. Comments: Keeney: Asked if this site is expected to shift ridership from other stations or create more opportunities, and the projected number of riders from Prior Lake. Kansier: Replied that Prior Lake ridership comprises about 30% of BlueXpress ridership. This transit sta- tion would be expected to increase the service of buses providing mid-day routes, etc. Keeney: Asked if they would be spreading the number of trips across all of the stations rather than every station getting more buses. Kansier: Replied there would be opportunity to split services such as a university bus leaving from a par- ticular station. Keeney: Asked if the number of riders out of Prior Lake is expected to increase from the current 250. Kansier: Replied that people would not be served out of the new transit station for three to four years, but ultimately it is expected to increase the number of riders. Keeney: Asked how much money Prior Lake is expected to contribute. Friese: Replied that the Marshall park and ride was scheduled for a future time when demand was antici- pated to be there, some of which would come from the western-most development of Prior Lake. The rid- ership trend of increasing number of riders is expected to be sustained. Financial commitment was budg- eted for the Eagle Creek Transit Station, but other funding was found for that so they are proposing that Prior Lake's commitment for that station would be directed to the Marshall site. Vermillion: Identified that regional transit funding is from the State and the Met Council, the County com- mitment has been for capital and operating monies are paid by cities from transit funding. Indicated that the Met Council stated they need local contribution to continue pursuit of this site. This is an investment for the future. Erickson: Spoke of the SMSC 50-year lease of land for the Eagle Creek Transit Station, and how Prior Lake and Shakopee receive transit funds due to their opt-out of the metropolitan transportation system. Asked if a park and ride is planned near to the CR 17/ CR 282 intersection. Kansier: Affirmed that was designated as a site for a 200-car park and ride with development of that area, anticipated to be after 2020. Erickson: Commented that the Marschall site would serve Shakopee and communities to the southwest on Hwy 169, but does not feel sure it will serve Prior Lake residents. Agreed the money has been accumu- lating in the City's Transit Fund and if it is not used, it is detrimental to other members of the Transit Board. Believes it might be better for Prior Lake to spend that money to provide parking in a place that benefits downtown and eastern Prior Lake. Millar: Asked for clarification of the amenities the Marschall site would provide. Vermillion: Reviewed site selection criteria from the Met Council noting that most people are willing to drive to locations that have amenities of restrooms, lobbies, more buses, etc. and it is their task to figure out where people will congregate to. Believes Prior Lake residents will drive a few miles to have the ameni- ties and that eastern Prior Lake residents will continue to drive to Burnsville to use that station. Millar: Commented that CR 17 will be a busy route in the future. Vermillion: Agreed there will be population movement to western Prior Lake. Stated the current issue is that there is opportunity to purchase 425 stalls for a good price and the site should be preserved even if it cannot be used for a few years. 7 City Council Meeting Minutes February 1, 2010 DRAFT Millar: Stated that Prior Lake is part of the Transit Review Board and should collaborate with the other members. Agreed there will not be much Prior Lake use of the site at first, but it will in the future. Supports this as a positive move, especially if the City uses the funds that were committed to the Eagle Creek Sta- tion. Hedberg: Asked how many housing units are expected in the annexation area. Kansier: Replied there would probably be 6,000 units. Hedberg: Concurred that Prior Lake might not need this station for several years, but having the transit station at the proposed site is going to be appropriate for Prior Lake and the question is whether it is worth taking the funds committed for Eagle Creek and taking advantage of the opportunity. Stated that the money is in the Transit Fund and he favors taking the opportunity. Myser: Clarified that the 2005 transit agreement identified three park and ride sites with one of them on Marschall Road. Vermillion: Affirmed. Myser: Asked why the Eagle Creek Transit Station was built. Vermillion: Replied that the long-term need is identified to be 1,000 parking stalls. The Eagle Creek site catches people before they have to go through the CR 16/ CR 21 intersection. After much discussion, the Transit Board decided it is effective to use two surface ramps with one off Marschall Road and the other off the South bridge site. Myser: Asked if there would be a feeder bus from one station to the other. Vermillion: Replied that is not anticipated as Marshall and Southbridge would have separate Hwy 169 ramps. Myser: Questioned whether residents would be willing to drive to the Marshall Road station from Prior Lake. Vermillion: Believes they will. Kansier: Noted that some people from Prior Lake drive past the South bridge station to go to the Eden Prairie station due to the amount of service and flexibility they can get there. Myser: Asked what other projects have been identified to use the funds if they are not used for this transit station. Kansier: Replied that the Capital Improvement Project has identified $440,000 of capital projects including the $220,000 scheduled for Eagle Creek. $62,000 is scheduled for the local share of the JARC grant to buy a bus and another $353,000 is committed for the purchase of three buses if a grant is received and $180,000 is committed for operating costs. Noted that both capital and operating expenditures come out of the Transit Fund. Myser: Asked about the bus that travels CR 21 and whether it could stop at Fire Station No.1 for passen- gers. Kansier: Replied that BlueXpress buses come from Schmitty and Sons, the currently contracted vendor, which is located in Lakeville. Explained that the contract will be bid again this year and if Schmitty did not get the contract, the buses could be coming from a different direction. Stated that the City can do the route however it wants and there may be a few spaces at Fire Station No. that could be used, but parking there is intended for availability of fire services and other City uses. Myser: Commented he would have interest in an evaluation of the services provided to residents of Prior Lake and whether it is reasonable to pursue a feeder service. Stated that Prior Lake is part of a transit sys- tem and there are times that the City is a beneficiary of construction built elsewhere and times the City is a contributor to it; and we need to remember the City is part of the broader component. MOTION BY HEDBERG, SECONDED BY MILLAR TO DIRECT STAFF TO CONTINUE WORKING WITH SCOTT COUNTY STAFF, THE METROPOLITAN COUNCIL AND THE CITY OF SHAKOPEE TO CONTINUE FURTHER EXPLORATION OF THE SITE AT MARSHALL ROAD. 8 City Council Meeting Minutes February 1, 2010 DRAFT Keeney: Stated he will support the motion for further study but will take some convincing to see actual benefit to Prior Lake. Erickson: Concurred with Keeney statement. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Millar. The motion carried. MOTION BY ERICKSON, SECONDED BY HEDBERG TO DIRECT STAFF TO EVALUATE OPPORTUNITIES FOR USING TRANSIT FUNDS FORA COMBINATION OF A PARKING FACILITY AND PARK AND RIDE FOR A DOWNTOWN VICINITY LOCATION. Keeney: Suggested that since the expenditure of the Transit Funds is not restricted to capital there might be other uses for the money such as more buses or increased services. Myser: Asked about willingness to expand the motion to look at a broader use of transit dollars for the city. Erickson: Replied that the downtown vicinity does not limit it to the downtown district. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Millar. The motion carried. PUBLIC HEARING No public hearing was conducted. OLD BUSINESS No old business was conducted. NEW BUSINESS Preliminary Year-end Financial Report. Finance Director Erickson reviewed the preliminary summary financial reports for the General Fund, Wa- ter and Sewer Fund, Water Quality Fund and Transit Fund. Noted the reports are preliminary, unaudited and will change. Spoke of the revenue sources and expenditures for the General Fund. Reviewed areas where expenditures varied more than projected. Explained that the final report is scheduled to be brought to the Council in May. Comments: Hedberg: Commented that the contained expenditures bring preliminary results that are a good surprise. J. Erickson: Responded that department managers did good job of containing and deferring costs. Hedberg: Stated that moving the monies into reserve funds will make budgeting easier for 2011. Millar: Asked if it is possible to look at the status of the budget before the end of the year. J. Erickson: Replied that reports are issued to department heads on a monthly basis and to the Council quarterly. Since the City operates on a cash basis, reports only reflect the invoices that have been submit- ted. At year-end we move to a modified accrual basis, but that is not done throughout the year. Explained that some of the expenditure savings such as the Workers Compensation premium reduction came in at the end of the year. Erickson: Will support the preliminary report. Keeney: Asked if there will be a final report on the enterprise funds. J. Erickson: Affirmed stating that report would be sent to the Councilmembers. Keeney: Stated he is happy to see that the City tightened up expenditures and echoed Hedberg and Millar remarks that it is a pleasant surprise. Stated that the explanations for variances in savings are good. Myser: Asked why the delinquent taxes are not budgeted. 9 City Council Meeting Minutes February 1, 2010 DRAFT J. Erickson: Replied that it is year end before it is known how much is delinquent. Would have to budget an uncollectible for the current taxes. Myser: Commented that the current tax revenue is at 94%, with an average of 6% uncollected. Asked how much of that is collected over a period of time. J. Erickson: Replied that the total collection to the levy was about 98% as of the 2008 audit report. Myser: Asked what happens to the last 2%. J. Erickson: Replied that it is eventually collected or moves into tax forfeiture. Myser: Asked if the City is properly characterizing franchise fees questioning whether they should be stated as fees or taxes. J. Erickson: Replied it has historically been shown as a fee in the audit report and, at $500,000, it is one of the major funding sources that support the operations of the General Fund. Myser: Replied it is good to be in this position and it is a testament to good fiscal management on behalf of the residents by the staff. Commented that it appears as if most of the information surfaced in the last quarter and asked if there is a better mechanism to track results throughout the year. J. Erickson: Replied that additional reporting to the Council can be provided if that is preferred, but af- firmed that many of the savings came in at year end. Myser: Asked if there has been a considerable surplus for the past two years and whether that means the City is taxing too much. J. Erickson: Replied there was a surplus of $468,000 for 2008 which was retained in the General Fund. Noted that the contingency fund retains $300,000 to achieve the 45% threshold and that is not intended to be spent. Two percent of the budget amounts to $500,000, so if no unexpected expenditures are needed, the budget should come in with a surplus. Stated the surplus is not extra money, it is the result of striving for savings. MOTION BY HEDBERG, SECONDED BY ERICKSON TO APPROVE THE REPORT. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Millar. The motion carried. OTHER Community Events Keeney: February 13 is the St. Jude's Research Benefit Ice Fishing Tournament @ Captain Jack's. Food shelves continue to have needs and encouraged those who can to continue to give. Erickson: The opening ceremonies for the Olympics will be February 12. Noted that a Burnsville native will be competing in downhill skiing. Hedberg: It's Groundhog Day tomorrow. Millar: The Rotary's Valentine's Gala will be at the Wild's on February 13. Myser: Congratulated the St. John the Baptist Catholic School as it celebrates its 150th year. EXECUTIVE SESSION City Manager Boyles requested deferring the executive session to allow time for a complete discussion of issues prior to the meeting. Suggested placing it on March 1 Council agenda. ADJOURNMENT With no further comments from Council members, a motion to adjourn was made by Millar and seconded by Erickson. With all in favor, the meeting adjourned at 10:00 p.m. Frank Boyles, City Manager Charlotte Green, Administrative Asst. 10