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HomeMy WebLinkAbout05 03 10 City Council minuteso p~O~P ~' 4646 Dakota Street SE ,,, ~, Prior Lake, MN 55372 REGULAR COUNCIL MEETING MINUTES CALL TO ORDER The meeting was called to order at 6:00 p.m. Present were Mayor Myyer, Council members Erickson, Hedberg and Keeney, City Manager Boyles, City Attorney Pace, Public Works Director/City Engineer Albrecht, Finance Director Erickson, Community Development and Natural Resources Director Parr, Building and Transit Services Director Kansier, Police Lieutenant Hofstad, Fire Chief Hartman, Assistant City Manager Meyer and Administrative Assistant Green. Councilor Millar was absent. 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 Economic 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: Barb Marschall, Scott County Commissioner, spoke about the FISH (Families & Individuals Sharing Hope) program, inviting the Council and the public to a kickoff meeting at Friendship Church on May 13. The program is a collaborative effort of faith community, non-profits, service groups, local government and businesses to make time, talent and resources available to help individuals in need. Keeney: Commented he likes to see this happening in the community believing that the more organizations that help each other to be successful and face adversity, the better. Marschall: Explained that FISH was patterned after SCALE (Scott County Association for Leadership and Efficiency) in its components which allow pooling of resources and attitude of being able to do things. Scott County is a model for doing things like this. Hedberg: Concurred that Scott County and communities have proud tradition of collaboration and likes to see that model used elsewhere. Myser: Asked how many members are in the FISH organization. Marschall: Replied that it is growing weekly, adding that the needed resources aren't just money, but also professional and personal skills or time. APPROVAL OF AGENDA Councilor Erickson requested the addition of two new business agenda items: discussion of coal tar, and revisiting the tree ordinance. City Manager Boyles requested that item 9B, Consider Approval of a Resolution Withdrawing the Application for Liquor License for Jazz Co. Cafe, be added to the agenda. Boyles further requested that item 10A, Consider Phone 952.447.9800 /Fax 952.447.4245 / www:cityofpriorlake.com Approval of a Resolution Authorizing the Mayor and City Managerto Enter into Two Standardized Water Tower Antennae Agreements with Clear Wireless LLC, be removed from the agenda. MOTION BY ERICKSON, SECONDED BY HEDBERG TO APPROVE THE AGENDA AS MODIFIED, VOTE; Ayes by Myser, Erickson, Hedberg and Keeney. The motion carried. APPROVAL OF MEETING MINUTES MOTION BY KEENEY, SECONDED BY ERICKSON TO APPROVE THE MINUTES OF THE APRIL 19, 2010, MEETING MINUTESAS PRESENTED, VOTE; Ayes by Myser, Erickson, Hedberg and Keeney. 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 10.038 Adopting the Scott County All Hazards, Multi-jurisdictional Mitigation Plan. C. ConsiderApproval of 1St Quarter Investment Report. D, Consider Approval of Preliminary 2010 First Quarter Financial Report for the General Fund and Enterprise Funds. E, Consider Approval of Resolution 10.041 Accepting Quotes and Authorizing Funds for Restoration and Final Completion of the CR 21 Watermain Replacement Project. F, Consider Approval of Resolution 10.042 Ratifying the 2010-2011 Collective Bargaining Agreement Between the City of Prior Lake and Law Enforcement Labor Services Inc. Local 100 Representing Prior Lake Police Officers. G. Consider Approval of Resolution 10.043 Authorizing the Mayor and City Manager to Enter into a Permit Agreement for the 2010 Farmer's Market. Councilor Keeney requested that item 5G be removed from the ConsentAgenda. Councilor Hedberg requested that item 5B be removed from the ConsentAgenda. Mayor Myser requested that items 5D and 5E be removed from the ConsentAgenda. MOTION BY ERICKSON, SECONDED BY HEDBERG TOAPPROUE THE CONSENTAGENDAAS MODIFIED, VOTE; Ayes by Myser, Erickson, Hedberg and Keeney. The motion carried. Keeney: Regarding the Farmer's Market, queried the purpose of the permit and what is being approved. Meyer; Stated the permit is a requestfrom the Farmer's Marketto close Main Avenue noting thatwhen right-of- way isimpacted, apermit isneeded. The permit also sets out the responsibilities ofthe organization and the City. Erickson: Asked if Carquestwould have two parking spaces set aside fortheircustomer'suse as in the past. Meyer; Affirmed. Erickson; Asked if the City is providing portable toilets forthe event. Meyer; Replied people seem to prefer indoorfacilities such as at the Library so the portable toilets are being discontinued. Erickson; Commented that pedestrian use of Main Avenue remains along with all of the privileges and restrictions that implies. Hedberg: Asked if music will be allowed. Meyer; Replied thatthe outdoorevents ordinance is intended to control largerevents in residential areas. Last year the Council reviewed and modified the ordinance to make exceptions forevents that have music as a secondary role such as the Farmer's Market. Myser; Asked if this is a private business. 2 City Council May 3, 2010 Meeting Minutes Meyer; Affirmed. Myser; Asked if the City incurs any costs associated with having the Farmer's Market. Meyer; Replied that there have been costs forthe City in the past, but with this year's changes in maintenance responsibilities, the Farmer's Market is bearing more of the responsibility. The City puts out no parking signs and there are a few administrative items that the City takes care of. Myser; Asked if there are issues and risks forthe City. Pace: Replied the Farmer's Market is required to name the CITY as an additional insured on their insurance coverage. Hedberg: Regarding the Scott CountyAll Hazards, Multi-jurisdictional Mitigation Plan, commented that the plan addresses one of the fundamental responsibilities of governmentto prepare itself "just in case" and noted that the report addresses natural disasters, pandemics, etc. Will look to include financial impacts of these hazards in evaluating need forfund reserves. Thanked Hofstad for being the emergency services manager. Erickson; Concurred with Hedberg remarks and added comments referring to the current Tennessee flooding, Keeney: Stated it is good that staff is on top of things as far as planning ahead. Myser; Queried what kind of things the City might have to deal with, Hofstad: Replied it would likely be weather related events. Noted that the Plan addresses both pre- and post- eventmitigation planning, Myser; Commented on a reference in the report to updating the sirens. Hofstad: Confirmed the sirens are up-to-date and that one has been added in the southern part of the City so there is nowcoverage throughoutthecommunity. Myser; Regarding the Preliminary 2010 First Quarter Financial Report for the General Fund and Enterprise Funds, asked whether there is anything unexpected in the report. Erickson; Replied there is not a lot of activity in City funds during the first quarter noting that tax collections, parks and streets activities, etc, will be reported later in the year, Hedberg: Asked if budgeting could include quarterly segments to allow information about howweare tracking to actual revenues and expenditures over a quarter ratherthat the entire year. J. Erickson; Clarified that the desire is to have the annual budget spread out on a quarterly basis to reflect what is expected for activity over four quarters. Hedberg: Believes thatwould help those who do not have intimate knowledge of the budgetto know if it is tracking properly. J. Erickson; Replied that a degree of that is provided in the summary, Stated the currentfinancial software system does not handle the distribution of the budget and reporting that would be necessary, Hedberg: Commented it could be addressed further in the future. Myser; Regarding the CR 21 Watermain Replacement Project, asked if the project is on track with the estimated costs for the project. Albrecht: Replied the project is below estimate by approximately $100,000 because the City acted as general contractor which reduced overhead on the project. MOTION BY HEDBERG, SECONDED BY KEENEYTOAPPROVE; • RESOLUTION 10.038 ADOPTING THE SCOTT COUNTY ALL HAZARDS, MULTI-JURISDICTIONAL MITIGATION PLAN, • THE PRELIMINARY2010 FIRST QUARTER FINANCIAL REPORT FORTHE GENERAL FUND AND ENTERPRISE FUNDS. • RESOLUTION 10.041 ACCEPTING QUOTES AND AUTHORIZING FUNDS FOR RESTORATION AND FINAL COMPLETION OF THE CR21 WATERMAIN REPLACEMENT PROJECT, • RESOLUTION 10.043 AUTHORIZING THE MAYOR AND CITY MANAGER TO ENTER INTO A PERMIT AGREEMENT FOR THE 2010 FARMER'S MARKET, 3 City Council May 3, 2010 Meeting Minutes UOTE; Ayes by Myser, Erickson, Hedberg and Keeney. The motion carried. PRESENTATION No presentation was scheduled. PUBLIC HEARING Public Hearing to Conduct Board of Appeal and Equalization City Manager Boyles explained that the Council will sit as the Board of Appeal and Equalization, Stated that this hearing concerns the valuation of properties for2010. Described the hearing process. Explained thattheCity contracts with the County's Assessors to conduct the valuations. Stated the Board will reconvene on May 17 to hear results of any valuation appeals. Finance Director Erickson commented that State Statutes provide forthe Council to act as the Board. The Board assumes thatthe County Assessor has properly valued the properties, so the burden of change is upon the property owner, Stated the Board has the authority to change the value of properties. Introduced County Assessor representatives Mike Thompson, County assessor; Troy Pint, residential appraiser; and Chad Bohnsack, commercial appraiser. Thompson explained the appeals process and this year's quintile assessment including what was learned about property valuation adjustments to commercial and residential properties. Comments: Hedberg: Reiterated the three-year process for valuations and taxation, Noted there are many steps along the way for public understanding and input. Keeney: Emphasized that foreclosures are not affecting the valuations forcomparison adding that bank-owned properties are still paying taxes. Thompson; Commented that Prior Lake is in the 40-50% range forforeclosure sales that are not eligible to be used forcomparables. Erickson: Added that this meeting is not abouttaxation, but rather about the valuation, MOTION BY HEDBERG, SECONDED BYKEENEYTOOPEN THE PUBLIC HEARING UOTE; Ayes by Myser, Erickson, Hedberg and Keeney. The motion carried and the public hearing opened at 6:55 p.m. Comments: Eugene Ouellette, PID 254630020, 3978 Station Place NW, purchased the house July 2009 for $132,500. Mortgagor valued property at $135,000. Valuation at $172,600. Stated the County compared to homes with more size and biggergarage. David Haspel, PID 254060430,16955 Toronto Ave SE, purchased property in February 2009 and a November 2009 appraisal valued the property at $50,000. Current valuation is $85,400. Stated the County could only find one comparable and believes that one is not valid due to location and not being senior housing, Comparable properties that have been sold are all foreclosures. Believes appraisal he paid for reflects the current marketvalue. Believes County should have a policy on including foreclosures as comparable values. Myser; Queried if the property was a foreclosure when he purchased it. Haspel; Affirmed. Hedberg: Commented that the assessors and the Board cannot include foreclosures as comparables because State law prohibits that. Haspel; Believes we are not in normal circumstances and there should be changes in that law, Myser; Asked the assessors if there is any mechanism to find better comparables. 4 City Council May 3, 2010 Meeting Minutes Thompson: Replied they could look at rules and regulations aboutwho can live in senior housing and try to find a similar building, Will dowhattheycan, Brenda Johnson, PID 254060160,16955 Toronto Avenue SE, stated her property is assessed at $107,000 and the neighbor's identical unitwas appraised at $93,000. Requested reassessment. Thompson; Requested a copy of the appraisal to see sales and terms of sales, whetherthey are identical units, etc. Ahmet Arsan, PID 254060330,16955 Toronto Avenue SE, believes his assessment is aggressive. Had property appraised forthe appropriate study period and the appraisal shows a significantly lowervaluation. Thompson; Queried if this appraisal is the one referred to by Johnson, Arsan: Affirmed and offered a copy of the appraisal to the assessors. Ginny Nyhus, PID 250430020, 4322 Bass Street, stated she has a certificate of real estate value for purchase of property in September 2009 in the amount of $388,000. Stated the difference in valuation between the County's assessment and the certificate of real estate value is $10,000. Requested her property be assessed at $388,000. Thompson; Recalled there were two sales in the study period on that street. Stated the assessor's goal is to assure that similar properties are valued similarly, Noted that significant adjustments have already been made to make all properties on the street valued similarly, Believes that being within $10,000 on a $388,000 property justifies the valuation, Nyhus: Stated the othersale onthe street is a twin home property and theirs is a single family home. Thompson; Clarified that not every sale is adjusted to the valuation; the assessor is seeking equality. Some will be a little higher, some lower, Erickson; Spoke of the importance of establishing a baseline forfuture taxes, stating his understanding that homes are re-evaluated through inspection every five years so a baseline would not carry on into perpetuity. Thompson; Concurred that properties are inspected every five years, but properties are revalued every year based on sales and individual situations. A baseline would be recalculated each year, Hedberg: Commented that by State law, the assessor's office is required to value a property from between 90% and 105% of a property's value and this property is within that parameter, Mark Kreissler, PID 254490010, 5832 Industrial Lane, stated the assessed value of his property is not going down compared to other properties in Deerfield. Had property appraised and it was valued at $1,775,000. The County assessed at $1,950,000. Stated it is not a typical warehouse facility due to the type of business, would likely incur extra expenses for renovation if sold, and wonders if that has been taken into account. Gary Kamrath, PID 254170130, 3651 Crystal Bay Lane, Purchased the property in September 2009 for $20- 23,000less than the valuation, Neighboring units have sold for $50,000 - $70,000 less than his purchase price. Requested reassessment. Thompson; Replied he is not familiarwith this property and it would be good to inspect it to assure that all information is accurate. Hedberg: Asked Kamrath if he has information aboutwhen previous sales were made before his purchase. Kamrath: Believes they were in 2008 and may have been in foreclosure. Julie Westman, PID 250110080, 5672 Huron St., stated she works in the real estate business and has researched comparables onmulti-family homes that sold during the study period. Related the sale prices of those properties indicating they were short sales. Stated that is whatthe market is right now, Her valuation is several thousand dollars higher and she is requesting revaluation of her property. Thompson: Replied that significant adjustments were made to this area, but not at the level of foreclosures. Stated the County has an assessor who works with multi-housing units of 24 units or less and he may be able to find comparable sales. Bernie Carlson, PID 251890050, 3595 Island Uiew Circle, explained the comparables he provided and stated he believes his appraisal is about $50,000 too high. Thompson; Replied that lakeshore properties were not reduced by 12% overthelast year. Noted that lakeshore properties are taking longerto sell, but sale prices are not drastically dropping, Sue and Larry Bagge, PID 259210040,13600 Canterbury Road, stated they have 18.7 acres and have highline wire easement across about a third of the property. Believes that portion cannot be taxed at the same level City Council May 3, 2010 Meeting Minutes 5 because no one can build under it. Believes they have been paying "full" property taxes for40 years and should not have been, Queried about a rebate of excess property tax payments. Stated that last year the valuation went down on their property, but taxes have been going up. Would like to know what recourse they have. Thompson; Asked if theirconcerns were addressed by AppraiserTroy Pint priorto this meeting and if they are appealing the valuation that Pint has revised. Bagge: Affirmed. Thompson; Clarified the amount of acreage on the property. Bagge: 18.7 acres. Thompson; Stated it is difficult to find comparables. Commented that property taxes cannot be adjusted back in time. Taxes can be abated back three years if a clerical error has occurred. Commented that this Board hearing does not address that. Hedberg: Asked if filing fortax abatementwould have to go to taxcourt. Thompson: Replied that itwould be filed with the taxation department and there are specific statutes that apply, City Manager Boyles read the letters thatwere written to establish an appeal, MC Gresser, PID # 251140024,14145 Shady Beach Trail NE. Kelly Gryting, PID 251410690,16059 Northwood Road NW. Chad and Sharon Bittner, PID 250700120, 5384 Manor Road SE. Irene Abrahamson, PID 252090040,16780 Brunswick Avenue SE. Jim Deanovic, PID #s 254420020, 254420030, 254420040, 254420090, 254420100, 254420110, 254420120, 254420210, 254420260, 254420270, and 254420280. MOTION BY ERICKSON, SECONDED BY KEENEYTO CLOSETHE PUBLIC HEARING UOTE; Ayes by Myser, Erickson, Hedberg and Keeney. The motion carried and the public hearing closed at 7;58 p.m. OLD BUSINESS Consider Approval of aResolution Providing forthe Issuance and Sale of $1,235,000 General Obligation Improvement Bonds, Series 2010A. Finance Director Erickson explained the purpose of the bonding and indicated Steve Mattson of Northland Securities would inform the Council of the details of the sale. Stated that the Moody's recalibrated their rating system and the City's rating was recalibrated to Aa2, Commented that the rating is based on the City's financial reserves, tax base, debt burden, financial management, taxpayer ability to pay, etc. Councilor Erickson queried whether he should recuse himself from discussion and voting on the sale of the bond as the funding will be used forthe CR 12 project. Pace: Replied that Erickson has notvoted up to this pointon whetherthe projectshould go forward or not; and it is not necessary, atthis juncture, to recuse himself from voting on the issuance of bonds forthe project, butwill need to recuse himself on matters concerning special assessments. Mattson stated the bonds were sold on April 29, 2010. The coupon rate is 2.5954%. An analysis of the anticipated pay back schedule was provided as well as information about other bonds that were sold that day and rates the other entities will pay. Comments: Erickson; Congratulated financial management that allowed City to reach the current bond rating, Hedberg: Asked how much money will be saved due to receiving the lower rate of interest. Mattson; Replied that $20,000 will be saved from the anticipated rate of 2,99% vs, the 2,59% rate received. Hedberg: Commented that the Council speaks often aboutthe savings achieved with a favorable bond rating and $20,000 is a tangible savings. 6 City Council May 3, 2010 Meeting Minutes Myser; Queried about the cause forthe small difference in rating from AA vs. AAA rating. Mattson; Replied that investors wantthebest they can getfortheir money and AA and AAA are the bestquality. Myser; Believes having the bonds taxfree is also a driver, Asked how manyothercities of oursize inthe metro area are at this kind of rating, J. Erickson; Responded that recalibration is showing that the majority of municipalities all received a bump up so ratings relativity is still similar. Mattson; Believes Minnesota has approximately 15 cities with the AAA rating and approximately 17 that are rated AA1; fewerthan 40 cities have a higher rating in Minnesota than Prior Lake. J. Erickson; Commented that Savage and Shakopee have the same rating as Prior Lake and Burnsville is rated AAA. Erickson; Asked about the desirability of purchasing an insurance policy that would allow the City to bond at a higher rating. Mattson: Responded that there were times when it made sense to buy an insurance policy in orderto buy bonds with AAA rating, butwiththe current market, there is no need to buy such insurance. MOTION BY HEDBERG, SECONDED BY ERICKSON TOAPPROUE RESOLUTION 10.044 PROVIDING FOR THE ISSUANCEAND SALE OF$1,235,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2010a, PLEDGING SPECIALASSESSMENTS FORTHE SECURITYTHEREOFAND LEVYINGATAXFORTHE PAYMENT THEREOF, VOTE; Ayes by Myser, Erickson, Hedberg and Keeney. The motion carried. Consider Approval of aResolution Withdrawing an Application fora Full On-sale Liquor License forJazz Co. Cafe and Authorizing Reimbursement of the License Fee Associated Therewith. Mayor Myser recused himself from discussion and voting. Councilor Hedberg assumed leadership of the meeting. City Manager Boyles reviewed the history of the liquor license application and the circumstances leading up to the request for withdrawal, MOTION BY KEENEY, SECONDED BY ERICKSON TOAPPROUE RESOLUTION 10.045WITHDRAWING AN APPLICATION FOR AFULL ON-SALE LIQUOR LICENSE FOR JAZZ CO. CAFE AND AUTHORIZING REIMBURSEMENT OFTHE LICENSE FEE ASSOCIATED THEREWITH. VOTE; Ayes by Erickson, Hedberg and Keeney. The motion carried NEW BUSINESS Coal Tar Councilor Erickson stated that the League of Minnesota Cities is recommending cities have ordinances prohibiting coal tar sealant on driveways. Public Works Director Albrecht explained that coal tar sealant contains Polycyclic Aromatic Hydrocarbon ~PAH) which is a compound that is common in anything that burns carbons. As the sealant ages and flakes off driveways, it is flushed into storm water drains and bodies of water, Stated PAH has been found in one holding pond. Asphalt based sealers are not as much of a problem, In orderforthe City to be eligible forgrant monies, it must have an ordinance that limits PAHs and tries to remove them, Comments: Erickson; Suggested the staff be directed to bring a proposed ordinance to the Council, Keeney: Added that the ordinance could also include any othercommonly used materials that should be evaluated. Albrecht: Agreed that staff would want to evaluate whatwas found in soil borings and the ordinance should be more encompassing than PAHs. Keeney: Asked if coal tar products are used by the City. Albrecht: Replied that the City uses asphalt-based products as well as do many commercial driveway companies. Hedberg: Concurred with direction to staff and queried an appropriate time. 7 City Council May 3, 2010 Meeting Minutes Albrecht: July, Myser; Asked if an opportunity should be made to have the company that makes the coal tar product present its side of the case. Albrecht: Concurred that should be part of the evaluation, Myser; Asked why PAH wasfound in onlyone holding pond. Albrecht: Replied it could depend on the neighborhood noting thatsome neighborhoods use commercial companies to seal driveways and others will have residents who like to do theirown and may choose a less expensive product such as the coal tar sealant. How the water gets to the pond can have an impact as well as the age of a neighborhood. MOTION BY HEDBERG, SECONDED BY ERICKSON TO DIRECT STAFF TO PREPARE A REPORT WHICH ADDRESSES PAHS AND POTENTIALLY OTHER STREET TREATMENT CHEMICALS TO BRING TO THE COUNCIL IN JULY, UOTE; Ayes by Myser, Erickson, Hedberg and Keeney. The motion carried Tree Ordinance Councilor Erickson commented on recentevents stating he would like staff to bring suggestions forchanges to the tree ordinance to the Council, Comments: Hedberg: Concurred. Keeney: Commented thatstaff could also advise aboutexisting ordinance and whetherthere are areas that are unclear about how they should be applied in recent circumstances. Suggested the current ordinance might just need education and dissemination. MOTION BY ERICKSON, SECONDED BY HEDBERG TO DIRECT STAFF TO BRING SUGGESTED CHANGES TO THE TREE ORDINANCE AND ADUICE AS TO HOWTO APPLYTHE CURRENT ORDINANCE. UOTE; Ayes by Myser, Erickson, Hedberg and Keeney. The motion carried OTHER Community Events Erickson: Sunday is Mother's Day. Keeney: Saturday is the DARE Bike-a-thon and the beginning of the Farmer's Market season, Hedberg: Senior Luncheon was today at noon, ADJOURNMENT With no furthercomments from Council members, a motion to adjourn was made by Hedberg and seconded by Keeney. With all in favor, the meeting adjourned at 8:32 p.m. Frank o s, ity Manager ~~~ Charlotte Green, Administrative Asst. 8 City Council May 3, 2010 Meeting Minutes