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HomeMy WebLinkAboutDraft May 17, 2010 Meeting Minutes 4646 Dakota Street SE Prior Lake. MN 55372 REGULAR COUNCIL MEETING MINUTES May 17, 2010 CALL TO ORDER The meeting was called to order at 6:00 p.m. Present were Mayor Myser, Council members Erickson, Hedberg, Keeney and Millar, City Manager Boyles, City Attorney Pace, Public Works Director/City Engineer Albrecht, Assistant City Engineer Poppler, Finance Director Erickson, Community Development and Natural Resources Director Parr, Building and Transit Services Director Kansier, 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. 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: No person stepped forward to speak. APPROVAL OF AGENDA City Manager Boyles requested the addition of item 10D, Consider Approval of a Resolution Authorizing the Mayor and City Manager to Enter into a Standardized Water Tower Antennae Agreement with Clear Wireless llC, MOTION BY MillAR, SECONDED BY HEDBERG TO APPROVE THE AGENDA AS MODIFIED. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Millar. The motion carried. APPROVAL OF MEETING MINUTES City Manager Boyles offered a correction to the minutes on page 3. MOTION BY ERICKSON, SECONDED BY HEDBERG TO APPROVE THE MINUTES OF THE MAY 3,2010, MEETING MINUTES AS MODIFIED. VOTE: Ayes by Myser, Erickson, Hedberg and Keeney. Millar abstained due to his absence at the meeting. 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 Building Permit Report. Phone 952.447.9800 / Fax 952.447.4245/ www.cityofpriorlake.com D. Consider Approval of Animal Warden Report. E. Consider Approval of Fire Call Report. F. Consider Approval of Resolution 10.047 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. G. Consider Approval of a Resolution Approving a Final Plat and Development Contract for Maple Glen 3rd Addition. H. Consider Approval of Resolution 10.046 Accepting Bids and Authorizing the Mayor and City Manager to Execute the City's Standardized Construction Contract for the 2010 CIPP Sanitary Sewer Lining Project. I. Consider Approval of Resolution 10.048 Extending the Deadline for Submitting a Final Planned Unit Development Plan and Final Plat for Summit Preserve. J. Consider Approval of Resolution 10.049 Making Appointments to the Traffic Safety Advisory Committee. K. Consider Approval of a Temporary Liquor License Extension for T J Hooligan's. L. Consider Approval of Ordinance 110.01 Amending Section 703 of the City Code to Include Specific No- wake Zones. City Manager Boyles requested that item G, be removed from the consent agenda to be considered at a later date. Councilor Hedberg requested that item J be removed from the consent agenda for discussion. Councilor Keeney requested that items A and L be removed from the consent agenda for discussion. Mayor Myser requested that items C and E be removed from the consent agenda for discussion. MOTION BY MILLAR, SECONDED BY ERICKSON TO APPROVE THE CONSENT AGENDA AS MODIFIED. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Millar. The motion carried. Hedberg: Regarding item J, asked which Councilor is the liaison to the Traffic Safety Advisory Committee. Keeney: Responded that it was he, and reported on the interviews. Stated the interview committee found all applicants to be very highly qualified, and since the committee bylaws allow three to five citizen members, they are recommending appointment of applicants Craig Anglin, Jeff Evens and Gordon Klingbeil. Spoke of the applicant's experience in municipal service and traffic safety. Keeney: Regarding item A, asked about an invoice reflecting repairs on one of the wells and whether it represents any issues about wells and pumps this summer. Eldred: Responded that Well #5 was pulled for regular maintenance and upgrades. It is scheduled to be back in services next week and should not impact summer. Keeney: Regarding item L, stated his support of Scott County Sheriff's Department in their ongoing service to protect all of the boaters on the lake. Believes the proposed ordinance revision regarding no-wake zones will give the Sheriff's Department some of the tools they need to do so. Hedberg: Added that the specifically named no wake zones will be familiar to those who are used to the lake and this ordinance is not adding no wake zones, but rather formalizing them in ordinance. Myser: Regarding item C, commented that declared value is about four times the value of permits issued last year. Asked about impact on budget revenue. Boyles: Displayed a report that compares 2009 vs. 2010 revenue which shows fees at $180,000 for 2010. Noted the stimulus program is terminating, which could reduce future new home permit issuance. J. Erickson: Added that all of fees collected are based on valuations so that has an impact on the revenues. Throughout the course of the year should show if this is just an anomaly from the stimulus rather than a change in the economy. 2 City Council May 17, 2010 Meeting Minutes DRAFT Kansier: Commented that 50 single family home permits are budgeted for 2010 and she that amount will be reached by June, Erickson: Asked about the ratio of fee amounts to number of permits. Kansier: Responded that no permit fee increases have been implemented and some types of fees remain flat regardless of the value of the construction. Myser: Regarding item E, asked the Fire Department if it had any comment about the increased carbon monoxide alarms as reflected in the fire report. Assistant Fire Chief Kline responded that this is a seasonal phenomenon as many of the newer types of alarms are more sensitive and tripping at a lower level reading. MOTION BY KEENEY, SECONDED BY HEDBERG TO APPROVE THE REMAINING CONSENT AGENDA ITEMS VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Millar. The motion carried. PRESENTATION Regional Public Safety Training Facility - Mike Briese Facility Manager Briese provided the 2009 update with PowerPoint and video. Spoke of the kinds of training that are conducted and the different kinds of agencies that use the facility. Reported that 2,338 hours of use occurred in 2009. Invited all to come and see the facility. Comments: Keeney: Asked how the fees or funding contributions are allotted to the many different agencies and communities that use the facility. Briese: Replied there is a Joint Powers Agreement for all Scott County entities, SMSC and Carver County; and they pay as per the formula contained within it. All other agencies pay a fee to use the facility, Erickson: Thanked state representatives who helped get the funding for the facility. Spoke of the history of the property. Stated that the City's costs would be much higher if this facility did not exist. Millar: Asked where the facility is located. Briese: Replied it is located halfway between Jordan and Shakopee, just off Hwy 169. Millar: Complimented the video shown stating it drives home the need for first responders and the hard work they do. Asked if it is anticipated the facility will be outgrown. Briese: Replied that member agencies will have priority over outside agencies for scheduling. Stated he works hard to schedule the facilities during evenings and weekends as well as week days. Millar: Explained what the Scott County Association for Leadership and Efficiency (SCALE) is, and that most communities in Scott County belong to SCALE and this facility is their biggest accomplishment. Hedberg: Agreed this exemplified the power of partnerships. The County or anyone of the agencies within the County would not have been able to accomplish this, but together they created a critical mass to make it happen. There is huge demand for a quality training facility like this. Myser: Concurred it will be the new normal for organizations to come together as groups to provide services at a lower cost for taxpayers. SCALE has had a phenomenal impact on the community and is a template that is recognized. Noted that SCALE is having a meeting at the regional training facility on September 10 and all Councilors are invited. Public Works Week Public Works Director Albrecht informed the Council that Streets and Utilities Supervisor Eldred accepted a position with the City of Waconia and that this would be his final report to the Council. Eldred spoke about National Public Works Week stating that this year's theme is, "Above, Below and All Around." Discussed programs with the County such as shared services and equipment purchases; new initiatives such as iron sand filter retrofits, rain gardens, athletic field irrigation reduction and the sweeping grant study. Stated the City received the American Public Works Association award and complimented staff for their efforts to win the award. Mayor Myser read the 3 City Council May 17, 2010 Meeting Minutes DRAFT National Public Works Week proclamation. Thanked Eldred for his service to the City. Presented the American Public Works Association - Excellence in Snow and Ice Award - to staff. Comments: Hedberg: Extended appreciation to Eldred for his services adding that Joe Wiita was named as the Streets and Utilities Supervisor upon Eldred's departure. Read the names of people who work in Public Works Department stating that they are the people who keep the City running effectively. Millar: Added that most residents don't realize how important the Public Works Department is until something is not right. Erickson: Stated the City receives full value from its Public Works Department and its innovative ways save taxpayers money. Keeney: Stated that public works departments are responsible for the modern quality of life that is taken for granted. It is an aspect of engineering that anyone can make things work with an unlimited budget, but a shining example of efficiency is when maximum functionality for minimum investment can be achieved and Prior Lake has many good examples of that. Myser: Read from an opinion piece in the Wall Street Journal. Commented that things are happening here that are not being done in other areas and queried how the City can attract the people who continue to improve the City. Asked Council to direct staff to come up with a program in that if an idea saves the City money, some of the savings go back to the employees who are coming up with the innovative ideas. Erickson: Commented he is not sure if it is an appropriate time to direct staff in that manner. Pace: Added that it may be questionable to provide incentive programs with profit sharing as that is a private sector option. Myser: Would be interesting to see if there is a way to break that mold. Acknowledged that there are other motivators such as improved customer service, and that it is not just about reducing cost. Hedberg: Concurred it would be interesting to have such a discussion at some point and that we should tap into what is already going on in Prior Lake. Believes the spirit of innovation runs throughout the City. Believes it is good to have an environment where employees feel encouraged and recognized for coming up with new ideas to do things better and that it is important to understand what is already working. Millar: Asked about the employee of the year and any other reward system that is in place. Boyles: Described the employee recognition program and the employee of the year award. Stated that several things have been used in the past - such as suggestion boxes, etc. Agreed there are things that can be done in the public sector to incentivize employees. Keeney: Supports efforts to retain best people and believes there are many things we can do and some of the freedoms and responsibilities that are given to staff to do the right thing is a big part. If we can capture what we are doing right and do more of it, it would support those efforts. Erickson: Stated it seems more appropriate for a work session scenario than a report to the council. lake Clean Up Day Proclamation - Donna Mankowski lakes Advisory Committee Chair Mankowski stated she has served on the lAC for several years. Stated that June 5 has been set for the fifth annual Dive the Lake event beginning at 9 a.m. at Captain Jack's. Explained that the event uses volunteer boaters and divers. Comments: Erickson: Clarified that divers furnish their own equipment and air. Commented that the Lake Clean-Up Day also has to do with cleaning up the shoreline and that occurs on all of the lakes in the community. Keeney: Noted that this is an example of Prior Lake making an event out of people getting together. Thanked everyone involved for putting it together. Hedberg: Recognized that Mankowski has been the leading this event since its beginning. Thanked her. Millar: Concurred with Hedberg's comments and thanked Mankowski for her hard work. Myser: Stated he volunteered as a diver in 2008 and will do so again this year. Read the proclamation. 4 City Council May 17, 2010 Meeting Minutes DRAFT EMS Week City Manager Boyles stated that it is EMS Week in Scott County. Explained that EMS is a three-legged stool based on police, fire and ambulance with each playing a role in providing services. Mayor Myser presented certificates to Assistant Fire Chief Kline and Police Sergeant Kahlert from Prior Lake for excellence in pre-hospital care. Comments: Hedberg: Stated that EMS first responders have to receive much training and stand at the ready at all times. All public safety officials are vital to the City residents. Thanked them. Millar: Added that he knows how hard they work and how much they care and are not necessarily appreciated until they are needed. Erickson: Commented on how the jurisdictions work together and extended gratitude for everything they do to keep people safe. Keeney: Commented that his family has experienced medical emergencies and thanked all who maintain that high level of readiness and show up in a matter of minutes to make things right. Myser: Noted that EMS providers risk life and limb on behalf of the residents to provide the services. Thanked them. Defining Design - Sue Robinson Community Development and Natural Resources Director Parr introduced Defining Design owner Sue Robinson. Ms. Robinson stated she will celebrate a grand opening on May 27,28 and 29. Described her background in interior design and described her business stating that the furnishings offered will be one of a kind, repurposed and refurbished. Comments: Keeney: Stated he is glad to have another new business come to Prior Lake and welcomed her. Erickson: Asked if the store front will have regular hours. Robinson: Replied she will have occasional sales throughout the year; otherwise will operate with appointments. Millar: Wished her luck. Hedberg: Commented it is a good business idea in this economy to repurpose and refurbish. Suggested she might want to have the business open during the Chamber's Ladies Night Out. Myser: Asked if she would be purchasing items that others might bring to her for refurbishing; and whether she started her business from her home. Robinson: Replied she might possibly purchase items from others; and that she has not sold from her home. Used to do the refurbishing in her home and sold it in St. Paul. PUBLIC HEARING Special Assessment Public Hearing for the 2010 Improvement Project for County Road 12, and Consider Approval of a Resolution Adopting the Assessment Roll for the Project. Councilor Erickson recused himself due to owning property included in the assessment roll. Assistant City Engineer Poppler described the hearing process explaining that this hearing addresses the third phase of the project. Described the components of the project. Stated that properties proposed for assessment were mailed notices about this public hearing. The assessment is proposed to be per unit rather than per footage. Each property is assessed one unit. Creekview Circle is part of the project and is proposed to be assessed at one unit per parcel as well. The benefit appraisal completed by a consultant confirms the special benefit for each parcel proposed to be assessed is met. Noted that the Assessment Review Committee discussed the private streets issue and has recommended a full assessment. 5 City Council May 17, 2010 Meeting Minutes DRAFT Finance Director Erickson stated the proposed assessment amount is $2,815 per unit. Spoke of options for payment and stated that the interest rate is six percent for people choosing to finance it with their property taxes. Explained parameters of deferred payments. Myser: Asked if it is typical that only one method of assessment is used. Poppler: Affirmed. Myser: Commented that it appears as though private drives are handled on a case-by-case basis and queried whether language could be developed to define it clearly. Poppler: Replied that the City has 65 private drives and they generally are in two categories; one where ownership is clear since there is an association and others that are in older neighborhoods with small private drives that are unique in their existence. Albrecht: Concurred that a number of the drives are unique and need to be handled on a case by case basis. Added that statute is clear that the benefit received must be greater than the assessment and that becomes the standard. MOTION BY HEDBERG, SECONDED BY MILLAR TO OPEN THE PUBLIC HEARING. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Millar. The motion carried and the hearing opened at 7:45 p.m. Comments: Emily Farah Miller, 3050 Creekview Circle, commented that this is a private street maintained by homeowners and none of the properties abut CR 12. Believes it should not be assessed, Stated that the summary of the meeting with Albrecht is that the City does not have protocol in place for determining that private streets should be included and case-by-case decision making has been in place since 1994. Urged the City to create a policy and procedure to follow consistently since decisions based on past practices allow for significant gray area. Questioned appraiser's analysis of benefit to her property and would like a second opinion. Noted that none of the four properties on Creekview Circle will gain curb/gutter, sidewalk or storm sewer. Warren Erickson, 3031 Spring Lake Road, stated he does not feel there will be benefit to his property from this project, but rather it will have a negative effect since there will be six foot wall built three to five feet from his house. Stated it creates a tunnel to his front door and he does not know where snow can be placed in the winter. Mike Burdick, 3063 Spring Lake Road, stated he has been trying to sell property and the road and assessment is considered a negative to all prospective buyers. Believes additional appraisals should have been done and asked if he would be allowed to get an additional appraisal. Stated he and his neighbors do not feel this project is positive for them and having two sidewalks is not a benefit. Jim Weninger, 2591 Spring Lake Road, spoke of the merits of having one sidewalk instead of two. Questioned the benefit gained when two sidewalks on the project create more impervious surface on the substandard lots that have limited green space. Commented that 85 driveways on a roadway that is being made for faster and heavier traffic is not going to make it safer for those residents. Residents will not be allowed to park in the roadway so there will be reduced parking. Questioned why Creekview Circle is being assessed at the same rate as all others. Sayed AIi and Salima Naqvi, 3044 170th Street SW, sent a letter requesting the data be shown to them that the improvements will increase their property value and asked that the amount of the assessment be reconsidered. MOTION BY KEENEY, SECONDED BY HEDBERG TO CLOSE THE PUBLIC HEARING. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Millar. The motion carried and the hearing closed at 8:06 p,m. Poppler: Reiterated the comments from the public. Explained that six appraisals were done for the project, $6,000 was the lowest special benefit or increase in property valuation and the assessment is $2,815; therefore, the benefit exceeds the assessment for all parcels. 6 City Council May 17. 2010 Meeting Minutes DRAFT Albrecht: Noted these are different than an appraisal for selling a property. Agreed the City could do more appraisals, but questioned what would be achieved by that process, Stated this is a low assessment rate for projects in Prior Lake primarily due to the subsidy of the project by the County. Poppler: Added that the City relies on the experience of the appraiser to determine the benefit factoring in many elements. Comments were made about safety, but increased traffic levels will be coming whether improvements are made or not as there are only a few routes to move traffic from one side of the lakes to the other. Comments: Hedberg: Stated he is a member of the assessment review committee. All of the issues that have arisen at this hearing were discussed many times. The requirement for special assessment is proving value. In all situations where there is a private street that connects to the road being improved, the value to the residents was explored. The value proves to be greater than the assessment for Creekview Circle. Commented that the Council requested the County to determine the cost for one sidewalk vs. two sidewalks and the County provided that information; but it was primarily noted on this project that the annexation will develop and will generate a nearly doubled level of traffic. It is not the traffic of today that is being considered, but the roadway that needs to be built for the traffic of the future. This is a County project on a County road with significant benefits to the County at large, and the County is absorbing most of the cost. Expressed his wish that there were a different route from east to west for traffic, but there is not. Will support the assessment roll as presented. Keeney: Echoed comments of Hedberg. Stated he is also a member of the assessment review committee and the committee reviewed the project several times. Used the unit assessment as there is uniform ownership with no empty land or commercial land. Creekview Circle residents generate the same number of trips as any other household in the City. Commented that the assessment is for 40% of the street and storm sewer costs. Sidewalks are not assessed as part of the project. It is long-standing policy to ask the residents who are benefiting from a new road to pay 40% of the cost and the rest of the taxpayers of the City bear the cost of the remaining 60%. Commented that all persons have to pay for convenient transportation. People usually demand more roads and more transportation options. It is the cost of living in modern society. In this situation, residents will pay much less than other neighborhoods have paid for similar reconstruction projects. Will support. Millar: Commented that this Council did not vote for the project, they inherited it. Even so, safety issues must be addressed. It was made clear to the City that the County controls this project and they would not have followed through with any request to have only one sidewalk. Assessments at this rate are a good price for the residents. Agreed that including Creekview Circle is consistent. Will support. Myser: Asked if the benefit received for residents on CR 12 (rather than Creekview Circle) is greater than $6,000. Poppler: Replied that one property was appraised in Creekview Circle with a $6,000 benefit and five properties were appraised on CR 12 with benefits increasing their property values of $8,500, $7,000, $15,000, $6,500 and $10,000. Myser: Asked how the City accounts for differences in increased values. Albrecht: Replied that the City has determined that the fairest assessment is the unit method which considers the usage of the roadway and how many trips a resident might be making on the roadway. When there is direct benefit to the frontage of a property, then the City could use the footage method. Added that State Statute uses special benefit as the criteria for assessment. Myser: Understands that staff plans to review the assessment policy. Albrecht: Stated that recently the City created a private street policy that considers maintenance and there are plans to have the assessment policy updated before the next reconstruction project is due. Myser: Concurred that the assessment is less than the benefit provided to the properties and the Council needs to make the right decisions for the long-term. Will support. Keeney: Asked for a summary of what people should do if they wish to perfect their special assessment appeal. Pace: Replied they have 30 days from the hearing to file in district court if they still disagree with the assessment. Millar: Commented that this has been a long arduous process and it is very emotional for some. Thanked residents for coming in. 7 City Council May 17, 2010 Meeting Minutes DRAFT MOTION BY HEDBERG, SECONDED BY KEENEY TO APPROVE RESOLUTION 10.050 ADOPTING ASSESSMENTS FOR THE 2010 IMPROVEMENT PROJECT FOR CR 12. VOTE: Ayes by Myser, Hedberg, Keeney and Millar.Erickson recused himself. The motion carried. RECESS The meeting was recessed at 8:32 p.m. RECONVENE Mayor Myser reconvened the meeting at 8:37 p.m. OLD BUSINESS Consider Approval of Reports from the Scott County Assessor's Office Regarding Appeals to the Board of Appeals and Equalization. City Manager Boyles stated the Local Board of Appeal and Equalization is reconvened. Explained the process of adopting valuations. Comments: Keeney: Asked about the value adjustment for PID # 25-910-0270. Troy Pint: Replied that this parcel was annexed to the City and was being charged at the municipal rate. The value was appealed and upon examination was deemed wasteland. It is no longer considered to be a buildable lot. Hedberg: Noted that the first appeal listed on the consent agenda, PID # 25-921-0400 is the same as #10 on the appeal list. Pint: Clarified the parcel should not be on the consent agenda, but rather #10 on the appeal list; and the valuation listed there is correct. Keeney: Questioned whether an error occurred resulting in some property being missed. Thompson: Replied that could be researched and if there is another property that appealed, it can still be forwarded to the district level of appeal. MOTION BY HEDBERG, SECONDED BY ERICKSON TO ADOPT THE SCOTT COUNTY ASSESSORS CONSENT AGENDA FOR RESIDENTIAL PROPERTY VALUES AGREED UPON PRIOR TO MAY 3,2010, WITH THE EXCEPTION OF DELETING PID # 25-921-0400 FROM THE PROPERTIES LISTED. Pace: Queried whether the intent is to have the County Assessor's office carefully review the consent agenda and those appealed and if errors are found, to reconcile them at the County Board of Appeal and Equalization and report back to the Council. Hedberg: Amended motion to direct Assessor's Office to analyze all properties on the consent agenda to assure there are no errors and if there are, to reconcile them at the County level. Pace: Stated the Council needed to make a motion to accept the valuations that are on the consent agenda. Hedberg: Clarified that when this action is taken, the duties of the Local Board of Appeal and Equalization is finished. Withdrew the motion. Erickson: Withdrew the second. MOTION BY HEDBERG, SECONDED BY ERICKSON TO ACCEPT THE PRIOR LAKE 2010 CONSENT AGENDA WITH THE FOLLOWING CONDITIONS: ELIMINATE PID # 25-921-0400 (LARRY BAGGE); THE COUNTY ASSESSOR STAFF IS TO ANALYZE THE ENTIRE CONSENT AGENDA FOR POTENTIAL ERRORS; AND, IF THERE ARE ANY ERRORS, THEY SHOULD BE BROUGHT FORWARD TO THE COUNTY FOR THAT LEVEL OF APPEAL. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Millar. The motion carried. 8 City Council May 17, 2010 Meeting Minutes DRAFT Myser: Asked Councilmembers if they wished to discuss any of the appeal recommendations from the Assessor's office. Millar: Appeal #7, Gary Kamrath, PID # 25-417-0130. Hedberg: Appeal #10, Sue and Larry Bagge, PID # 25-921-0400. Erickson: Appeal #6, Mark Kreissler, PID #25-449-0010. Keeney: Appeal #13, M.C. Gresser, PID #25-114-0024. Myser: Appeals #3, Brenda Johnson, PID #25-406-0160; #4, Ahmet Arsan, PID #25-406-0330; #5, Virginia Nyhus, PID #25-043-0020; and #8, Julie Westman, PID #25-011-0080. MOTION BY KEENEY, SECONDED BY HEDBERG TO ADOPT THE SCOTT COUNTY ASSESSORS VALUATIONS AS RECOMMENDED FOR THOSE PROPERTIES APPEALED ON MAY 3, 2010: APPEAL 1, EUGENE OUELLETE, PID # 25-463-0020; APPEAL 2, DAVID HASPEL, PID# 25-406-0430; APPEAL 9, BERNIE CARLSON, PID # 25-189-0050; APPEAL 11, JIM DEANOVIC (15 PARCELS); APPEAL 12, SHARON BITTNER, PID # 25-070-0120; APPEAL 14, IRENE ABRAHAMSON, PID# 25-209-0040; AND APPEAL 15, KELLY GRYTING, PID # 25-141-0690. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Millar. The motion carried. Millar: Regarding appeal 7, queried whether the comparables were not received on time. Thompson: Affirmed that they were outside of the study period; but that they can be considered for the next year's valuation period. Hedberg: Noted that if the sales offered for comparables were made after the study period, it would indicate these properties would be reduced in value for the next year's valuation. The sales were qualified, just not in the study period. Thompson: Concurred that it appears the most recent sales indicate a downward trend continuing. Myser: Asked why a property value would not be set at the selling price assuming it is a qualified sale. Thompson: Replied the assessors have to use all of the sales on all of the properties. Some will be higher or lower and the assessor is expected to value within a range of 90 - 105%. If a single property is lowered based on the sale, they would be valued differently than everyone else. Myser: Queried whether it is hard to value the lake property since they are so unique. Thompson: Replied that it is definitely a challenge because the volume of properties sold on the lake are so few. Hedberg: Regarding appeal 10, asked why the reduction was recommended. Pint: Replied that the property owner had concerns of high voltage power lines going across the property making the land unbuildable. That portion of the land was transferred to wasteland. Hedberg: Clarified that the land that does not have the power lines has the same value as before. Pint: Affirmed. Erickson: Regarding appeal 6, asked why the assessors lowered the value to $1,775,000, but due to differences in market rent conclusions the revised market value of $1,850,000 is justified. Bohnsack: Replied it is common to appraise commercial property based on income analysis. The primary method used for this property was the rental income it could generate. Believes the independent appraisal offered by the property owner showed the property undervalued. Erickson: Asked if the County agreed that $1,775,000 would be sales value, but the potential rental income raises the value to $1,850,000. Bohnsack: $1,775,000 was the valuation from the independent appraisal. The County's analysis based on inspection proved that there was curable depreciation on the property. Approximately 9,000 sq ft of area does not have concrete. Batting cages have sloped floor and that area would need to be demolished and a new floor put in. Erickson: Asked if it is arbitrary as to which value process is used or if there is a normal standard. Bohnsack: Cost approach is most effective method of determining what the cost to cure would be. Difficult to determine what the market rent factor would be for the way it is now vs. if it were a flat concrete floor. 9 City Council May 17, 2010 Meeting Minutes DRAFT Erickson: Asked why he decided to use the rent method. Bohnsack: The overall value of the property was based on what it would be assuming it was a flat concrete floor. Since it doesn't have that, needed to figure out what it would cost to cure that for a typical buyer. Erickson: Asked what the guideline is for changing from a buying to a renting analysis. Bohnsack: Replied the rental market analysis is generally a more reliable version, This case was supported by the sales comparison method. Hedberg: Commented his understanding that capitalization of the market rent was done to determine valuation which was then adjusted for the cost of the cure. Bohnsack: Performed the cost to cure, but also did a NOI for pro forma of income and expense and slightly raised the capitalization rate which effectively lowered the value by an additional $30,000. Hedberg: Clarified that the assessor raised the cap rate and asked if that is consistent with investor valuations in the market. Bohnsack: Affirmed. Hedberg: Asked if the appraiser assumed there is a higher market rent than the appellant assumed. Bohnsack: Affirmed. Hedberg: Asked what the appraiser's basis for higher market rent than the appellants. Bohnsack: Due to the fact that the entire building is air conditioned. Myser: Asked if there is something in the appellant's appraisal considered unacceptable. Bohnsack: Replied that the appraisal was fine; just that Bohnsack came up with a different rent conclusion that he could support with the data he had in his office. Myser: Stated that the appellant's appraisal seems to have been reasonable too, and ask how it was determined that the County's was the one to use. Bohnsack: Replied that one of the com parables was not a good comparable as it was much different on a per square foot value so he discounted that one. The remaining comparables brought the average up. Myser: Asked why deductions were not noted in previous valuations. Bohnsack: Replied he could not get into the property in 2007. Used blueprints that did not identify those issues. Myser: Asked if this person has recourse to have previous years valuations reconsidered. Bohnsack: Replied that the property owner has filed a tax petition. Keeney: Regarding appeal 13, stated he will support the recommendation, but wanted the process explained. Asked if this property owner can go on to the County appeal or to District Court. Thompson: Replied the property owner has the opportunity to appear at the County Board if he chooses. Explained he has been unable to get in contact with the homeowner and no supporting documentation was provided. Myser: Regarding appeal 3, 4, 5 and 8, asked why the unqualified sale is stated in the findings if it is not included from the resident's perspective. Thompson: Replied that the sale was not considered in the analysis, but they wanted to inform the Board that there was another duplex sale that would have been on the high end. It was not considered in the recommendation made. MOTION BY HEDBERG, SECONDED BY MILLAR TO ACCEPTING THE RECOMMENDATIONS OF THE ASSESSORS OFFICE FOR APPEALS 3, BRENDA JOHNSON, PID # 25-4-6-0160; 4, AHMET ARSAN, PID # 25- 406-0330; 5, VIRGINIA NYHUS, PID# 25-043-0020; 6, MARK KREISSLER, PID # 25-449-0010; 7, GARY KAMRATH PID # 25-417-0130; 8, JULIE WESTMAN, PID # 25-011-0080; 10, SUE AND LARRY BAGGE, PID # 25-921-0040; AND 13, M. C. GRESSER, PID # 25-114-0024. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Millar. The motion carried. Hedberg: Commented that there are 34 changed valuations on the consent agenda, all reductions; and another five properties had values reduced through conversation and analysis with the County Assessor's office. 10 City Council May 17, 2010 Meeting Minutes DRAFT The Local Board of Appeal and Equalization was adjourned at 9:25 p,m. NEW BUSINESS Consider Approval of the 2009 Annual Financial Report and Management Letter Finance Director Erickson stated that the City receives an annual audit which was completed in March. Steve McDonald from Abdo Eich and Meyers reviewed the financial report and management letter. The City received an unqualified opinion on its financials. McDonald identified a key area of management as being the general fund balance compared to budget and the City has managed that well. Reviewed the status and uses of various funds. Comments: Erickson: Asked for explanation the City's class 2 designation. McDonald: Replied that it pertains to the population and class 2 refers to a city between 20,000 and 100,000 in population, Erickson: Noted that Prior Lake taxes per capita is $371 compared to the peer group of $430 which is 12% less than other cities in our class. Hedberg: Noted that Prior Lake has a higher debt than the peer group and understands that is typical with cities experiencing rapid growth incurring bonding for building infrastructure. Prior Lake has bonded for such things as the fire station and water treatment facility and that accounts for most of our debt. No major projects are planned for the next few years, Noted that the City has a careful eye on debt load and plans for it to decline over the next several years. Millar: Commented that the audit shows the City to be in good shape. Stated that the auditor has identified there is limited segregation of duties due to a low number of staff, but he recognizes that it is not economically feasible to hire additional staff and the existing staff is doing a good job. Myser: Reiterated that controls are in place to keep things tight and honest and the audit shows that the City is doing a good job. Noted the existing range on the General Fund is at the top of the level recommended by the State. MOTION BY MILLAR, SECONDED BY HEDBERG TO ACCEPT THE 2009 ANNUAL FINANCIAL REPORT AND MANAGEMENT LETTER. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Millar. The motion carried, Consider Approval of a Resolution Authorizing the Expenditure of up to $60,000 to be Reimbursed by Jeffers Foundation for the Purchase and Installation of a Kiosk, Shelter and Trail in the Jeffers Pond Park City Manager Boyles reviewed previous action taken to create a nature center in the Jeffers Pond Park. Construction of a bridge is completed and agreement has been reached with the Jeffers Foundation to construct a park shelter and kiosk using escrowed funds, Discussion of an extension to a wood chip trail is underway with the Foundation expressing concern about erosion and domestic animals running free. Staff suggested restriction of animals from the conservation and nature center areas and proposed that conversations be held with nearby residents to learn their opinion of that. Comments: Millar: Supports moving forward with a kiosk and shelter. Has issues with restricting domestic animals from the entire park. Agreed with Boyles suggestion to have conversations with residents. Hedberg: Queried about the location of the conservation easement. Albrecht: Replied the park has multiple conservation easements which include all of the bituminous trails on the eastern edge the lower pond. Believes clarification should be sought with the Jeffers Foundation about which conservation easement they are referring to rather than restrict the entire park. Hedberg: Stated the property will be a wonderful outdoor learning experience for the Five Hawks Elementary School. The bridge, shelter, kiosk and trail will make for a complete outdoor learning experience. Supports not 11 City Council May 17, 2010 Meeting Minutes DRAFT having domesticated animals around the woodchip trail. Suggested that discussion be held with the MN Land Trust regarding conservation easements. Could support the prohibition of domesticated animals from the area indicated on the Land Trust's map. Believes that not allowing pets on the bituminous area around the homes is not as reasonable. Keeney: Agreed with Hedberg. Supports the exclusion of domesticated animals on the wood chip area. Asked for clarity on numbered trails. Albrecht: Replied he cannot confirm what they mean by trail 2 and 3. Keeney: Supports moving forward if understanding is reached about the location of trails and the conservation easement is met. Erickson: Commented he has met people along the trails who have not leashed their pets. Agreed that animals could be restricted to asphalt trails and not allowed in unpaved areas. Supports the kiosk and shelter. Myser: Asked if timing will be impacted if staff gathers feedback from residents. Albrecht: Replied that staff will not be able to move forward with improvements right away. The Foundation would be paying for the hire of additional seasonal staff who will perform the labor. Confirmation of the Foundation's intent regarding restriction of domesticated animals is needed so the rest of the property is not obligated. Myser: Questioned the fees or penalties that would be applied for people who violate the restriction. Albrecht: Replied there is no staff assigned to being on site to patrol for such violations so consideration would need to be given for how to provide such enforcement. Myser: Added that might be an issue of concern for the Foundation as well and should be explored for an appropriate recommendation. Keeney: The proposal included signage and suggested that a complaint phone number could be posted as an addition deterrent. Myser: Would welcome opportunities to look at such options in order to protect this natural area. MOTION BY KEENEY, SECONDED BY ERICKSON TO AUTHORIZE THE PURCHASE OF MATERIALS AND CONSTRUCTION OF A SHELTER, KIOSK AND TRAIL AT JEFFERS POND PARK TO BE REIMBURSED BY THE JEFFERS FOUNDATION, WITH THE TRAIL CONDITIONED UPON CLARIFICATION OF CONDITION "D" CONCERNING DOMESTIC ANIMALS IN THE CONSERVATION EASEMENT TO BE RESTRICTED FROM THE AREA SHOWN FOR THE WOOD CHIP TRAIL ONLY AND NOT THE BITUMINOUS TRAILS IN THE JEFFERS POND AREA. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Millar. The motion carried. Consider Approval of a Report Regarding Stonebriar Park Public Works Director Albrecht displayed the area proposed for the park. Explained that the Stonebriar PUD agreement included the park as one of the benefits for the City and the developer escrowed $35,400 for it. The development is nearly built out and residents have contacted the City to request that the park be completed. The CIP planned for the pergola to be built this year and the playground structure next year. Staff suggests putting the playground structure in this year and the pergola next year and revise the CIP accordingly. Reviewed issues regarding long-term maintenance costs, whether the park should be built and commitments made to the PUD plan. Comments: Hedberg: Believes the longer term value is the pergola on the trail system. Supports going forward and putting in the play equipment first and the pergola the following year. Not sure that a tot lot on a less than acre site will be part of the future. Millar: Asked how close the park will be to TH 13 and whether fencing is planned. Albrecht: Replied that the pergola and benching area will be used as part of a barrier and the playground equipment will be further away from the highway. Fencing is planned around the pond. Millar: Believes fencing along the highway should be considered as it is not safe to have children that young playing that close to the highway. 12 City Council May 17, 2010 Meeting Minutes DRAFT Erickson: Developer did not have a park in their original plan, but a council member requested that it be included. The residents have been promised a park and the City has to deliver. Keeney: Agreed it's a done deal and agreed with the proposal to swap the order of delivering it. Albrecht: Suggested that since the money is in escrow and it is a small project, both segments could be completed this year. Keeney: Agreed noting that the planning and fencing has to be planned this year anyway. Albrecht: Added that the grading would also have to be done this year. Myser: Supports completing it all this year. Supports extending fencing to protect users from the highway. Agreed a commitment has been made to build the park and the City must stand by it. Exemplifies why policies must be reviewed periodically. Would like to see what it would take to allow residents to take care of local parks if they want to. Albrecht: Responded that the City has an Adopt-a-Park program and Stonebriar residents could be invited to adopt their park. Inspections need to be done bi-weekly on fhe play equipment. Hedberg: Clarified that the fencing described is not included in the plan. Albrecht: Responded that extending chain link fencing will not add a significant cost. MOTION BY HEDBERG, SECONDED BY MILLAR TO DIRECT STAFF TO PROCEED WITH ALL ASPECTS OF THE STONEBRIAR PARK TO INCLUDE THE PERGOLA, TOT LOT PLAYGROUND EQUIPMENT AND FENCING. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Millar. The motion carried. Consider Approval of a Resolution Authorizing the Mayor and City Manager to Enter into a Standardized Water Tower Antennae Agreement with Clear Wireless LLC Finance Director Erickson informed the Council that the City has ten antennae agreements in place. This agreement is to place an antennae on the Tower Street tower. Described approval of site plans, agreement terms and fee schedules. Comments: Keeney: Asked if there are revisions to the agreement from previous drafts. J. Erickson: Identified clarification in the language of terms, renewal of terms and early termination penalties. Keeney: Asked how the City knows what a competitive rate is. J. Erickson: Noted that rates on other tower agreements were established over a period of years and some used a consumer price index. A process has been implemented to have a set fee and a set inflationary price to help with future contracts. Rates have been compared to other cities. Keeney: Commented he has heard of rates ranging from $10,000 to $30,000 depending on the population served. J. Erickson: Replied that this agreement will be competitive from the perspective of building in an inflationary rate. Erickson: Noted that this agreement will generate a half million dollars of revenue over the next 20 years. Will support. Millar: Will support. Hedberg: Will support. Asked what service Clear Wireless will be offering to PL residents. J. Erickson: Introduced Debra Weis, consultant for Clear Wireless. Weis: Replied that it is a wireless Internet service. Described the antennae and service hut. Hedberg: Commented that the City can use the wireless internet service. Will support. Myser: Asked if the antennae will serve the entire population, considering geography. Weis: Replied that co-locations with other towers will allow the towers to connect up. Service south of TH 13 will begin to drop off as the network needs to grow in that direction. Myser: Asked when the service will commence. Weis: Replied that the launch is planned for this fall. Hedberg: Asked why there is a delay with setting up the Crest Avenue tower antennae. 13 City Council May 17, 2010 Meeting Minutes DRAFT Weis: Replied that this agreement begins upon execution of the contract rather than construction of the building so Clear Wireless is delaying the second construction to avoid as much upfront cost prior to revenues coming in. Erickson: Asked if Clear Wireless services are only south of the river. Weis: Replied it will be offered throughout the metro. MOTION BY HEDBERG, SECONDED BY MILLAR TO APPROVE RESOLUTION 10-051 AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE THE CITY'S STANDARDIZED WATER TOWER ANTENNAE AGREEMENT WITH CLEAR WIRELESS LLC FOR THE TOWER STREET WATER TOWER. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Millar. The motion carried. OTHER Community Events Erickson: Stated that there will be a Memorial Day event and parade. Millar: Added that the events will be at Memorial Park. Myser: Commented that 138 Girl Scouts of Minnesota and Wisconsin River Valleys will receive the Girl Scout Gold Award. Jamie Stang and Haley Sorensen of Prior Lake will be receiving this award. Hedberg: Stated that tomorrow is filing day for statewide and national election primaries. Does not apply to the local elections, which will file in August. ADJOURNMENT With no further comments from Council members, a motion to adjourn was made by Erickson and seconded by Hedberg. With all in favor, the meeting adjourned at 10:47 p.m. Frank Boyles, City Manager Charlotte Green, Administrative Asst. 14 City Council May 17, 2010 Meeting Minutes DRAFT